Developing Countries, Economic Development, and Markets

2019 ◽  
pp. 3-8
Author(s):  
Eleanor M. Fox ◽  
Mor Bakhoum
Keyword(s):  
Economic Growth ◽  
Developing Countries ◽  
Economic Development ◽  
Poverty Line ◽  
State Ownership ◽  
Sub Saharan Africa ◽  
The People ◽  
Vested Interests ◽  
Sub Saharan ◽  
Sustainable Economic Growth

This chapter discusses economic development and markets in developing countries, with a focus on sub-Saharan Africa. Developing countries, especially lower-income developing countries with low rates of growth, share key characteristics and challenges. Huge portions of their populations live below the poverty line. The markets are generally highly concentrated with high barriers to entry, and state ownership—with privileges granted by the state—is pervasive. In order to provide the people with the necessities of life, developing countries need economic growth; in order to provide equity and spur development, they need inclusive, sustainable economic growth, consistent with equity. The chapter then describes two forms of market policy: antitrust law, which prohibits and removes restraints by market actors who engage in harmful conduct such as conspiracies to raise prices and bar entry by competitors, and surrounding restraints that are not violations of law but do the same thing: raise prices, barricade entry, and favor vested interests.

scholarly journals Financial Inclusion, Income Inequality and Sustainable Economic Growth in Sub-Saharan African Countries

2021 ◽  
Vol 13 (4) ◽  
pp. 1780
Author(s):  
Chima M. Menyelim ◽  
Abiola A. Babajide ◽  
Alexander E. Omankhanlen ◽  
Benjamin I. Ehikioya
Keyword(s):  
Economic Growth ◽  
Income Inequality ◽  
Financial Services ◽  
Sub Saharan Africa ◽  
Kuznets Curve ◽  
African Countries ◽  
Financial Access ◽  
Sub Saharan ◽  
Sustainable Economic Growth ◽  
The Impact

This study evaluates the relevance of inclusive financial access in moderating the effect of income inequality on economic growth in 48 countries in Sub-Saharan Africa (SSA) for the period 1995 to 2017. The findings using the Generalised Method of Moments (sys-GMM) technique show that inclusive financial access contributes to reducing inequality in the short run, contrary to the Kuznets curve. The result reveals a negative effect of financial access on the relationship between income inequality and economic growth. There is a positive net effect of inclusive financial access in moderating the impact of income inequality on economic growth. Given the need to achieve the Sustainable Development Targets in the sub-region, policymakers and other stakeholders of the economy must design policies and programmes that would enhance access to financial services as an essential mechanism to reduce income disparity and enhance sustainable economic growth.

scholarly journals The Nexus between Financial Development and Economic Growth: Panel Data Evidence from Developing Countries

2021 ◽  
Vol 14 (10) ◽  
pp. 489
Author(s):  
E. M. Ekanayake ◽  
Ranjini Thaver
Keyword(s):  
Economic Growth ◽  
Developing Countries ◽  
Panel Data ◽  
Least Squares ◽  
Financial Development ◽  
Panel Cointegration ◽  
Sub Saharan Africa ◽  
Explanatory Variables ◽  
Cointegration Tests ◽  
Sub Saharan

The objective of this study is to investigate the nexus between financial development (FD) in economic growth (GROWTH) in developing countries. The study uses panel data from 138 developing countries during the period 1980–2018. The relationship between financial development and economic growth is investigated using four explanatory variables that are commonly used to measure the level of financial development and several other control variables, including a dummy variable representing the financial and banking crises. The sample of 138 developing countries is also classified into six geographic regions. We have carried out panel unit-root tests and panel cointegration tests before estimating the specified models using both Panel Least Squares (Panel LS) and Panel Fully Modified Least Squares (FMOLS) methods. In addition, panel Granger causality tests have been conducted to identify the direction of causality between FD and GROWTH for each of the regions. The results of the study provide evidence of a direct relationship between FD and GROWTH in developing countries. Furthermore, there is evidence of bi-directional causality running from FD to GROWTH and from GROWTH to FD in samples of Europe and Central Asia, South Asia, and all countries, but not in East Asia and Pacific, Latin America and the Caribbean, Middle East and North Africa, and Sub-Saharan Africa.

scholarly journals Application of Multi-Criteria Decision-Making Model and GM (1,1) Theory for Evaluating Efficiency of FDI on Economic Growth: A Case Study in Developing Countries

2019 ◽  
Vol 11 (8) ◽  
pp. 2389 ◽  
Author(s):  
Wang ◽  
Le
Keyword(s):  
Economic Growth ◽  
Decision Making ◽  
Developing Countries ◽  
Economic Development ◽  
Exchange Rate ◽  
Malmquist Productivity Index ◽  
Productivity Index ◽  
Sustainable Economic Development ◽  
Sustainable Economic Growth

Foreign direct investment (FDI) and corporate social responsibility (CSR) spending are one of the major factors in improving sustainable economic development of a country. Therefore, this study focuses on the multi criteria application of FDI and sustainability factors (CSR spending) in various developing countries to explore its impact and decision making for sustainable economic growth. The study uses a case study methodology whereby FDI, exchange rate, and CSR expenditure data from 20 countries were used to assess the efficiency in sustainable economic growth. Data were collected from the World Bank for 20 Asian and African developing countries during 2012–2017 and analyzed using GM (1,1), mean absolute percentage error (MAPE), Malmquist productivity index (MPI)-data envelopment analysis (DEA), and the slacks-based measure of efficiency (SBM) model. Correlation analysis is used to find the relationship for FDI, CSR, exchange rate, gross domestic product (GDP), and GDP per capita (GDPPC). The results of the Malmquist productivity index and the frontier effect clearly highlight that a few countries have witnessed a great improvement in terms of productivity and technological progression. Therefore, the decision makers must adopt the model of those countries with respect to sustainable development of the nation. This study helps developing nations as well as researchers to benchmark efficient countries and follow their strategies to develop a new one for utilizing FDI and CSR spending in sustainable economic development. The study also helps policy makers in multi criterion application of FDI and CSR for decision making in economic development.

scholarly journals The Coupling Coordination Relationship between Tourism Competitiveness and Economic Growth of Developing Countries

2020 ◽  
Vol 12 (6) ◽  
pp. 2350
Author(s):  
Xia Wang ◽  
Danli Liu
Keyword(s):  
Economic Growth ◽  
Developing Countries ◽  
Sub Saharan Africa ◽  
Entropy Weight ◽  
Developing Regions ◽  
The Pacific ◽  
Entropy Weight Method ◽  
Weight Method ◽  
Sub Saharan ◽  
The Relationship

On the basis of the coupling coordination degree (CCD) model and information entropy weight method, this study examined the relationship between tourism competitiveness and economic growth of 56 developing countries from 2008 to 2017. The results show that: (1) the overall status of the CCD between tourism competitiveness and economic growth was in a state of unbalance that was mainly caused by the lag of economic growth, which demonstrates the important contribution of tourism in developing regions. (2) the CCD has been gradually improving since 2008, and the differences amongst the CCDs of developing countries have been shrinking and (3) the spatial distribution of the CCD between tourism competitiveness and economic growth has heterogeneity. Latin America & the Caribbean, and East Asia & the Pacific have the highest CCD, whereas Sub-Saharan Africa witnessed severely unbalanced development between tourism competitiveness and economic growth in 2008–2017.

Spatial Patterns and Trends in Energy Use and Consumption in Africa

2016 ◽  
Vol 15 (4) ◽  
pp. 406-418
Author(s):  
Edwina Kofi-Opata
Keyword(s):  
Developing Countries ◽  
Economic Development ◽  
Energy Use ◽  
The Other ◽  
Sub Saharan Africa ◽  
The Core ◽  
Daunting Task ◽  
Spatial Pattern Formation ◽  
Sub Saharan ◽  
Health Complications

Energy lies at the core of every human activity and can be described as having a pervasive influence on all aspects of development making it one of the most important resources that belies the development of any given country. Developing countries on the other hand are constantly faced with the daunting task of providing its industries and citizens with energy in its various forms. The resulting effect is limiting economic development and by extension limited social development. In meeting this need, the Ghanaian populace have and continue to rely on traditional biomass amid associated risks and health complications. This article analyzes the factors accounting for the heavy reliance on traditional biomass in Sub Saharan Africa (ssa) with particular reference to Ghana and to determine if these factors promote a spatial pattern formation in energy use.

scholarly journals Exploring economic structure and drivers of economic growth in Botswana

2015 ◽  
Vol 4 (4) ◽  
pp. 673-678
Author(s):  
Patricia Lindelwa Makoni
Keyword(s):  
Economic Growth ◽  
Commodity Prices ◽  
Economic Structure ◽  
Sub Saharan Africa ◽  
International Capital ◽  
Private Sector Investment ◽  
Sub Saharan ◽  
The Government ◽  
Small Economy ◽  
Sustainable Economic Growth

This article set out to analyse the economic structure and main economic drivers in Botswana. Botswana, a country in sub-Saharan Africa, is a relatively small economy, hugely dependent on its diamond mineral wealth. Concerns have arisen in recent years that the diamond deposits will soon be depleted and the country therefore needs to embark on a diversification programme to broaden its economic base. In order to understand the Botswana economy, its economic structure and current domestic sectorial performance were evaluated, as well as its trends in imports and exports. An analysis of the data shows that, regardless of the awareness of the sensitivity to external shocks of commodity prices, as well as the obvious future depletion of diamond reserves, the Botswana economy continues to rely on diamonds, at the expense of attracting international capital flows to enhance and maintain sustainable economic growth, through investments in agriculture, manufacturing and tourism. It is therefore recommended that the Government of Botswana becomes proactive and implements recommended policies to diversify its economy, so that it can sustain or improve its economic growth by becoming a prime destination of international capital and domestic private sector investment, thereby increasing employment and trade opportunities.

scholarly journals Differential Impact on Economic Development

2021 ◽  
Vol 23 ◽  
Author(s):  
Isaac Ulderico Mirti
Keyword(s):  
Economic Growth ◽  
Economic Development ◽  
Growth Rates ◽  
Sub Saharan Africa ◽  
History Plays ◽  
Colonial History ◽  
Additional Insight ◽  
Differential Impact ◽  
French Colonies ◽  
Sub Saharan

Why are some countries wealthier than others? There are numerous ways to address this question; however, there is substantial literature in development economics suggesting that a nation’s colonial history plays an integral part in pre-determining who is rich, and who is poor. Previous studies suggest that among former African colonies, British or French colonies experienced marginally faster growth rates than Portuguese, Belgian, or Italian ones. This provides additional insight to suggest that differentiation in economic growth could be explained by a nation’s colonial history. This study attempts to understand the differential impacts of British and French colonialism on the economic growth in sub-Saharan Africa. By investigating the different approaches to colonizing, is it possible that one of these previous imperial powers better equipped their colonies with formidable institutions conducive for economic growth after independence?  

scholarly journals PERCEPTIONS OF ENTREPRENEURSHIP IN MALAWI: A COUNTRY CONTEXT UNDERSTANDING OF ENTREPRENEURSHIP

2021 ◽  
Vol 9 (2) ◽  
pp. 49-62
Author(s):  
Charles Mwastika
Keyword(s):  
Developing Countries ◽  
Economic Development ◽  
Sub Saharan Africa ◽  
Multiple Perspectives ◽  
Cross Sectional Survey ◽  
Cross Sectional ◽  
For Profit ◽  
Sub Saharan ◽  
Economic Perspectives ◽  
Classical Economic

Entrepreneurship is considered a strategy for economic development, but other scholars found that it does not bring economic growth in developing countries. Although entrepreneurship has multiple perspectives, there is a lack of knowledge about prevailing perceptions and activities undertaken in developing countries, especially in Sub-Saharan Africa. The purpose of this study was to measure the perceptions of entrepreneurship in Malawi to have country context knowledge of the concept that guides what is undertaken as entrepreneurship. A cross-sectional survey of 337 enterprise owners and managers was undertaken using a questionnaire. Participants were requested to provide their top-of-the-mind definitions of entrepreneurship and activities their enterprises had undertaken which were considered entrepreneurial. Analyses of definitions and activities undertaken were used to draw out perceptions of entrepreneurship. The study found that starting and managing one's own business for profit, creating jobs, and being self-employed is the prevailing understanding of entrepreneurship in Malawi. The study further found low innovation among enterprises. Although the perceptions found reflect classical economic perspectives, they are inadequate to ignite economic development because of a lack of focus on innovation. The findings imply that understanding a concept is important in practice.  Therefore, stakeholders are encouraged to appraise their knowledge about entrepreneurship to align with theories where entrepreneurship is the driver of business growth and economic development. Further studies are required on the relationships between perceptions of entrepreneurship, activities undertaken, and economic development to advance entrepreneurial knowledge in Sub-Saharan Africa.

Biometric National Identification

2021 ◽  
pp. 153-171
Author(s):  
Emmanuel Eilu
Keyword(s):  
Economic Development ◽  
Lessons Learned ◽  
Sub Saharan Africa ◽  
African Countries ◽  
Biometric Technology ◽  
Transitional Countries ◽  
National Identification ◽  
The People ◽  
Sub Saharan

Fifty-five percent of the people living in sub-Saharan Africa lack any official identification documentation and this has created a hug identity gap. African countries are using biometric technology to pilot multimillion-dollar national identification projects aimed at narrowing the identity gaps. However, there has been little evidence published on the extent this technology has led to economic development and to narrowing the identity gap in sub-Saharan Africa. Using a narrative review, this chapter explores the role of the emerging biometric national identification technology in narrowing the identity gap and contributing to economic development in sub-Saharan Africa. This chapter is of significance in that it informs governments in developing and transitional countries especially in Africa on lessons learned from the pilot projects and suggests better ways of narrowing the identity gap using the emerging biometric national identification technology.

scholarly journals Direction of Causality Between Financial Development and Economic Growth. Evidence for Developing Countries

2016 ◽  
Vol 26 (2) ◽  
pp. 1-22 ◽  
Author(s):  
Sorin Nicolae Borlea ◽  
Codruta Mare ◽  
Monica Violeta Achim ◽  
Adriana Puscas
Keyword(s):  
Economic Growth ◽  
Developing Countries ◽  
Arab World ◽  
Sub Saharan Africa ◽  
The European Union ◽  
The North ◽  
The Pacific ◽  
Financial Indicator ◽  
The World ◽  
Sub Saharan

Abstract The results of extensive studies that analyzed the existence and meaning of correlations between the economic growth and the financial market development lead us to a more thorough study of these correlations. Therefore, we performed a broad study of the developing countries from around the world (the developing part of each region constructed by the World Bank through its Statistics Bureau). The regions taken into analysis were: Europe and Central Asia, South Asia, East Asia and the Pacific, the Arab world, Latin America & and the Caribbean, the Middle East and North Africa, and Sub-Saharan Africa. For comparison purposes, we have also included in the sample the North American countries, the Euro Area and the European Union as a whole, because these last three areas are the main benchmarks of the financial markets. The results are consistent with those from previous studies on the subject and vary depending on region and financial indicator considered.

Sign in / Sign up

Export Citation Format

Share Document