scholarly journals Carving Out an Empire? How China Strategically Uses Aid to Facilitate Chinese Business Expansion in Africa **

2020 ◽  
Author(s):  
Tarek M Harchaoui ◽  
Robbert K J Maseland ◽  
Julian A Watkinson
Keyword(s):  
Positive Influence ◽  
Development Aid ◽  
Market Growth ◽  
Chinese Business ◽  
Long Run ◽  
Democratic Regimes ◽  
Consumer Markets ◽  
Import Share ◽  
Sphere Of Influence ◽  
Official Development Aid

Abstract: China’s rising investment and aid flows into Africa have raised concerns over its increasing influence, triggering worries about a new scramble for Africa. This paper sorts out the motivations behind the various forms of Chinese aid, arguing that China uses different types of aid strategically to divert the recipient countries’ economic and institutional orientation towards its own interests. Exploiting the AidData set, we show that China’s official development aid (ODA) is positively related to an export bias in favour of China, suggesting that it serves to secure privileged access for Chinese firms to African resources. ODA tends to flow to less democratic regimes, because less accountable governments have more power to offer long-run privileges to their financial supporters. In contrast, we show that other official flows (OOF) are used to increase China’s import share and is positively related to institutional quality, since this has a positive influence on market growth. This suggests that OOF is mainly used to facilitate Chinese access to promising African consumer markets. We conclude that while China employs different aid flows for different economic purposes, it uses all aid flows strategically to advance its interests and create an economic sphere of influence in Africa.

scholarly journals Official Development Aid: Plaster in A Wound? Evidence Using Data From Ethiopia

2021 ◽  
Author(s):  
Cherkos Meaza
Keyword(s):  
Economic Growth ◽  
Developing Countries ◽  
Development Aid ◽  
Aid Effectiveness ◽  
Political Leader ◽  
Real Gdp ◽  
Long Run ◽  
Short Run ◽  
Using Data ◽  
Official Development Aid

Abstract The flow of aid to developing countries has increased massively and they receive billions of dollars per year in the form of aid from bilateral and multilateral donors. However, the economic growth achieved by many developing countries in general has not been satisfactory. Poverty is still there and resulted in a custom of aid dependence and foster the opportunity for the corrupted political leader. The conclusion on aid effectiveness is doubtful among economists, found to be inconclusive. This paper intends to see how ethiopian economy is reacting to the flow of foreign aid coming from rest of the world viz-a-viz the current most prestigous and influential arguments against and pro-effectiveness of aid. A time series on important parameters extending from 1981 to the most current 2017 is used and an econometrics techniques ECM is employed to examine the short run dynamics and long run relationship among the variables. The result of the short run dynamics showed that aid has a negative and statistically significant impact on economic growth. However, the impacts turns to be positive in the long run. economic growth measured by the real GDP adjusts to its long run equilibrium with an average speed of about 25.7 percent annually and it will roughly take it about 4 years to restore back to equilibrium, ceteris paribus.

The Development of Ethnoracial Market Segments

2019 ◽  
pp. 380-395
Author(s):  
G. Cristina Mora
Keyword(s):  
Racial Minority ◽  
Market Segments ◽  
Market Growth ◽  
Long Run ◽  
Consumer Markets ◽  
Meaning Systems ◽  
Ethnic Entrepreneurs ◽  
Latino Media ◽  
Racial Narratives ◽  
Over Time

Racial minority markets today are now multi-million-dollar ventures, but little is known about how these markets develop. This chapter uses the case of Latino media to show how market demands interact with racial narratives to channel the development of ethnoracial market segments. In a nutshell, the case shows that ethnic entrepreneurs exploit stereotypes about racial and consumer differences to build their minority market, but these racialized understandings can also prohibit market growth in the long run. The author contends that the study of racial and ethnic markets presents an important opportunity for economic sociologists to better understand how inequality and institutionalized meaning systems structure consumer markets over time.

scholarly journals Official Development Aid: Plaster in A Wound? Evidence Using Data From Ethiopia

2021 ◽  
Author(s):  
Cherkos Meaza
Keyword(s):  
Economic Growth ◽  
Developing Countries ◽  
Development Aid ◽  
Aid Effectiveness ◽  
Political Leader ◽  
Real Gdp ◽  
Long Run ◽  
Short Run ◽  
Using Data ◽  
Official Development Aid

Abstract The flow of aid to developing countries has increased massively and they receive billions of dollars per year in the form of aid from bilateral and multilateral donors. However, the economic growth achieved by many developing countries in general has not been satisfactory. Poverty is still there and resulted in a custom of aid dependence and foster the opportunity for the corrupted political leader. The conclusion on aid effectiveness is doubtful among economists, found to be inconclusive.This paper intends to see how ethiopian economy is reacting to the flow of foreign aid coming from rest of the world viz-a-viz the current most prestigous and influential arguments against and pro-effectiveness of aid. A time series on important parameters extending from 1981 to the most current 2017 is used and an econometrics techniques ECM is employed to examine the short run dynamics and long run relationship among the variables.The result of the short run dynamics showed that aid has a negative and statistically significant impact on economic growth. However, the impacts turns to be positive in the long run. economic growth measured by the real GDP adjusts to its long run equilibrium with an average speed of about 25.7 percent annually and it will roughly take it about 4 years to restore back to equilibrium, ceteris paribus.

scholarly journals Official Development Aid: Plaster in A Wound? Evidence Using Data From Ethiopia

2021 ◽  
Author(s):  
Cherkos Meaza
Keyword(s):  
Economic Growth ◽  
Developing Countries ◽  
Development Aid ◽  
Aid Effectiveness ◽  
Political Leader ◽  
Real Gdp ◽  
Long Run ◽  
Short Run ◽  
Using Data ◽  
Official Development Aid

Abstract The flow of aid to developing countries has increased massively and they receive billions of dollars per year in the form of aid from bilateral and multilateral donors. However, the economic growth achieved by many developing countries, in general, has not been satisfactory. Poverty is still there and resulted in a custom of aid dependence and foster the opportunity for the corrupted political leader. The conclusion on aid effectiveness is doubtful among economists, found to be inconclusive.This paper intends to see how the Ethiopian economy is reacting to the flow of foreign aid coming from the rest of the world viz-a-viz the current most prestigious and influential arguments against and pro-effectiveness of aid. A time series on important parameters extending from 1981 to the most current 2017 is used and an econometrics technique ECM is employed to examine the short-run dynamics and long-run relationship among the variables.The result of the short-run dynamics showed that aid has a negative and statistically significant impact on economic growth. However, the impacts turn to be positive in the long run. economic growth measured by the real GDP adjusts to its long-run equilibrium with an average speed of about 25.7 percent annually and it will roughly take it about 4 years to restore to equilibrium, ceteris paribus.

scholarly journals Sources of Economic Growth in Zambia: An Empirical Investigation

2017 ◽  
Vol 18 (2) ◽  
pp. 275-290 ◽  
Author(s):  
Themba G. Chirwa ◽  
Nicholas M. Odhiambo
Keyword(s):  
Economic Growth ◽  
Human Capital ◽  
International Trade ◽  
Foreign Aid ◽  
Development Aid ◽  
Human Capital Development ◽  
Long Run ◽  
Short Run ◽  
Capital Development ◽  
Macroeconomic Determinants

In this article, the key macroeconomic determinants of economic growth in Zambia are investigated using the autoregressive distributed lag (ARDL) bounds testing approach. The study has been motivated by the unsustainable growth trends that Zambia has been experiencing in recent years. Our study finds that the key macroeconomic determinants that are significantly associated with economic growth in Zambia include, amongst others, investment, human capital development, government consumption, international trade and foreign aid. The study’s results reveal that in the short run, investment and human capital development are positively associated with economic growth, while government consumption, international trade and foreign aid are negatively associated with economic growth. However, in the long run, the study finds investment and human capital development to be positively associated with economic growth, while only foreign aid is negatively associated with economic growth. These results have significant policy implications. They imply that short–run economic policies should focus on creating incentives that attract investment and increase the quality of education, the effectiveness of government institutions, the promotion of international trade reforms and the effectiveness of development aid. In the long run, development strategies should focus on attracting the accumulation of long-term investment, improving the quality of education and the effectiveness of development aid.

De Facto Fiscal Space in Donor-countries and Their Aid Supply: To What Extent is Trade-related Aid Supply Affected?

2019 ◽  
Vol 8 (1) ◽  
pp. 1-25 ◽  
Author(s):  
Sena Kimm Gnangnon
Keyword(s):  
Trade Openness ◽  
Jel Classification ◽  
Development Aid ◽  
Fiscal Stimulus ◽  
Economic Wealth ◽  
Working Paper ◽  
Trade Sector ◽  
Fiscal Space ◽  
Official Development Aid ◽  
The Impact

This article investigates the impact of fiscal space in donor-countries on their official development aid (ODA) supply. It relies on the indicator of ‘De Facto Fiscal Space’ proposed by Aizenman and Jinjarak (The Fiscal Stimulus of 2009–10: Trade Openness, Fiscal Space and Exchange Rate Adjustment, NBER Working Paper 17427, 2011) and on a panel of 22 donor-countries over the period 1964–2015. The analysis considers four measures of ODA, including the total net aid transfers (NAT), ODA allocated to all sectors in the recipient-countries (ODAALLSECT), ODA allocated to the trade sector and ODA provided for the non-trade sector. The empirical results show that greater fiscal space in donor-countries influences positively donors’ NAT, their ODA allocated to all sectors as well as their ODA allocated to the non-trade sector in recipient-countries. At the same time, greater fiscal space in donor-countries does not influence ODA relating to the trade sector. Furthermore, the impact of fiscal space on ODA supply to the trade and non-trade sectors depends on donor-countries’ level of economic wealth. Jel Classification: E62, F35

Impact of Share Splits on Stock Returns: Evidences from India

2019 ◽  
Vol 23 (4) ◽  
pp. 432-441
Author(s):  
Bilal Ahmad Pandow ◽  
Khurshid Ahmad Butt
Keyword(s):  
Stock Returns ◽  
Impact Analysis ◽  
Positive Influence ◽  
Market Model ◽  
Sign Test ◽  
Rank Test ◽  
Long Run ◽  
Short Run ◽  
Study Methodology ◽  
The Impact

This article empirically examines the impact of stock splits on the price movements and returns of the scrips listed on the stock market in India. The study makes use of the standard event study methodology to measure the significance of unusual yield associated with the event. To calculate the returns, the study employs market model. Also, it uses parametric tests, such as t-statistic, and non-parametric test, such as Corrado Rank Test, Generalized Rank Test and Sign Test, to check the significance and robustness of abnormal return (AR), average AR, and cumulative average AR. Indisputably, the results are somewhat different from the evidences found in developed markets. Mostly in these countries, the event witnesses unusual optimistic yields. The results suggest that there is a positive AR adjacent to the effective day (ED) of the event in the short run. However, in the long run, negative ARs in the post-effective to ED+90 days window is witnessed. Further, the analysis also suggests that share splits do not have a positive influence on the share capital of the investors. The results are based on the 10-days event and 90-days estimation window and are the main limitation of the study. Hence, the windows can be both expanded and reduced to have a better holistic impact analysis of the share splits and stock returns of the selected firms.

scholarly journals Who Supports International Development Cooperation in Times of Crisis? Public Opinion in Rural Spain

2019 ◽  
Vol 11 (7) ◽  
pp. 2027
Author(s):  
Juan Gómez-Quintero ◽  
Pilar Gargallo Valero ◽  
Jesús Miguel Álvarez
Keyword(s):  
Public Opinion ◽  
International Development ◽  
International Cooperation ◽  
Rural Areas ◽  
Small Towns ◽  
Development Aid ◽  
Development Cooperation ◽  
Multivariate Statistical ◽  
Official Development Aid ◽  
The Town

The official development aid provided by donor countries does not solely depend on government decisions; it is also affected by trends in public opinion. This means that it is important to find out more about the opinions, views and attitudes of the citizens of donor countries. In spite of this, very few research studies have specifically analysed the opinions of people from rural areas. The aim of this research is to analyse the attitudes of the inhabitants of rural areas in northeast Spain to assess the degree of support for policies of international cooperation and development. To this end we carried out a survey of 403 people resident in small towns, selected using a stratified sampling process. We then conducted multivariate statistical techniques of the information we had gathered, in which we found that there were three types of individuals according to their level of interest, concern and action: aware but not actively involved, not interested and passive, and proactive with strong convictions. This research has shown that educational level, size of the town and age all influence the person’s interest in the problems affecting the rest of the world and their support for international cooperation.

Influence of Selected Macroeconomic Variables on Economic Growth in Nigeria (1999 – 2018)

2020 ◽  
Vol 7 (8) ◽  
pp. 315-325
Author(s):  
Lyndon M. Etale ◽  
Lucky L. Imbazi
Keyword(s):  
Economic Growth ◽  
Money Supply ◽  
Least Square Method ◽  
Positive Influence ◽  
Sustainable Growth ◽  
Least Square ◽  
P Value ◽  
Political Will ◽  
Long Run ◽  
Multiple Regression Technique

This study set out to empirically examine the influence of selected microeconomic variables (MEVs) on economic growth in Nigeria between 1999 and 2018. It evaluated gross domestic product (as the measure of economic growth) as a function of four selected variables of MEVs: Interest rate, Exchange rate, Inflation and Broad Money Supply. For effective and efficient analysis of the study variables the multiple regression technique based on the ordinary least square method with the help of several inferential statistical tools were used for data analysis to draw necessary conclusions. The models used analyze the relationship between the selected MEVs. Nigeria’s inability to increase her GDP over the years far above her population growth is heavily dependent on the sincerity of our political will to actualize it. The hypotheses formulated were rejected for three variables because the critical P-value 0.05 is < the calculated P-values; except for BMS Broad Money Supply (BMS) which revealed significant positive influence on GDP with P-value of 0.00 < 0.05 level of significance. The study therefore concluded that macroeconomic decision is not enough to bring about economic growth. The interplay of both fiscal and monetary policy backed up with political will to achieve its objectives both in the short and long-run is required. Nigeria still lack good political will for economic growth and poor governance. Still government should improve the regulations and supervisory role in the financial sector for sustainable growth to be achieved in Nigeria.

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