scholarly journals FDI, Multinationals, and Structural Change in Developing Countries

2021 ◽  
pp. 494-523
Author(s):  
André Pineli ◽  
Rajneesh Narula ◽  
René Belderbos
Keyword(s):  
Developing Countries ◽  
Structural Change ◽  
Multinational Enterprises ◽  
Trade Openness ◽  
Firm Boundaries ◽  
Best Interest ◽  
Comprehensive Overview ◽  
Catching Up ◽  
Country Differences ◽  
Control Of Corruption

This chapter provides a comprehensive overview of the extant knowledge linking activities of multinational enterprises (MNEs) and structural change in developing countries. The balance of payments approach, which focuses on investment, is criticized. The exact configuration of the MNE will result from the interaction between the ownership of assets of the firm and the location-specific assets of countries, and the extent to which the firm perceives it to be in its best interest to organize these assets within the firm boundaries, that is, to internalize the market. The East Asian experiences suggest that FDI is just one of the possible vehicles of knowledge acquisition, and that the investment development path could be redefined in terms of technological catching-up. Cross-country differences in the FDI–structural change nexus seem to be associated with the financial development and the level of control of corruption of the countries but not with trade openness.

Technological Revolutions, Structural Change, and Catching up

2021 ◽  
pp. 131-155
Author(s):  
Jan Fagerberg ◽  
Bart Verspagen
Keyword(s):  
Economic Growth ◽  
Developing Countries ◽  
Renewable Energy ◽  
Structural Change ◽  
Final Section ◽  
Foreign Technology ◽  
Technological Revolution ◽  
The Past ◽  
Catching Up

This chapter interprets the transition to a more sustainable type of growth as a technological revolution in progress. The chapter opens with a general discussion of the role of technological revolutions and structural change and economic growth, with special emphasis on the acquisition of foreign technology, exports, and catching-up-based growth. It then goes on to examine whether the transition to renewable energy can be seen as a technological revolution in line with the great technological revolutions of the past. The answer to this question is in the affirmative. The final section discusses the implications of this for catching-up-based growth in China and other developing countries.

scholarly journals Structural change and productivity growth in Brazil: where do we stand?

2020 ◽  
Vol 40 (2) ◽  
pp. 243-263
Author(s):  
ANDRÉ NASSIF ◽  
LUCILENE MORANDI ◽  
ELIANE ARAÚJO ◽  
CARMEM FEIJÓ
Keyword(s):  
Structural Change ◽  
Interest Rates ◽  
Labor Productivity ◽  
Productivity Growth ◽  
Labour Productivity ◽  
Trade Openness ◽  
Labor Productivity Growth ◽  
Catching Up ◽  
Significant Structural Change ◽  
Low Degree

ABSTRACT The aim of this paper is to discuss the evolution of the Brazilian labour productivity in the 1990s and 2000s to shed some light on the resilience of the Brazilian economy to recover growth. Labor productivity growth in Brazil, after showing positive annual rates between 1950 and 1979, became stagnant after 1980. Following McMillan and Rodrik’s (2011) methodology, this paper at first decompose labor productivity growth in the period 1950-2011, according to “structural change” (which is considered growth-enhancing) and “within effect” (which is growth-reducing, if not accompanied by significant structural change while the country is still pursuing its catching-up process). Next, an econometric exercised is presented to explain the determinants of the structural change component of the labour productivity since economic opening in the 1990s. The results show that the stagnation of the Brazilian productivity is explained by the overvaluation trend of the Brazilian currency, the reprimarization of the export basket, the low degree of Brazil’s trade openness and the high real interest rates prevailing in the period.

Searching for new Sources of growth. Are the Developing Countries Catching up with the Developed ones?

2015 ◽  
pp. 30-53
Author(s):  
V. Popov
Keyword(s):  
Developing Countries ◽  
Western Europe ◽  
Gdp Per Capita ◽  
The West ◽  
Catching Up ◽  
The Us ◽  
The World ◽  
Economic Divergence ◽  
Per Capita ◽  
Relative Standing

This paper examines the trajectory of growth in the Global South. Before the 1500s all countries were roughly at the same level of development, but from the 1500s Western countries started to grow faster than the rest of the world and PPP GDP per capita by 1950 in the US, the richest Western nation, was nearly 5 times higher than the world average and 2 times higher than in Western Europe. Since 1950 this ratio stabilized - not only Western Europe and Japan improved their relative standing in per capita income versus the US, but also East Asia, South Asia and some developing countries in other regions started to bridge the gap with the West. After nearly half of the millennium of growing economic divergence, the world seems to have entered the era of convergence. The factors behind these trends are analyzed; implications for the future and possible scenarios are considered.

Determinants of structural change in food exports from developing countries

2009 ◽  
Vol 23 (2) ◽  
pp. 94-115 ◽  
Author(s):  
Juthathip Jongwanich ◽  
Nedelyn Magtibay-Ramos
Keyword(s):  
Developing Countries ◽  
Structural Change

Automotive Industry in BRIC Countries

2014 ◽  
pp. 55-65
Author(s):  
S. Afanas'ev ◽  
V. Kondrat’ev
Keyword(s):  
Developing Countries ◽  
Automotive Industry ◽  
Developing Economies ◽  
Cost Effective ◽  
State Regulation ◽  
Bric Countries ◽  
Final Assembly ◽  
Catching Up ◽  
The Future ◽  
Assembly Operations

For the next decade, the future of the automotive industry lies in BRIC’ countries. Together, Brazil, Russia, India, and China will account for some 30 percent of world auto sales in 2014 while also offering significant opportunities for cost-effective R&D, sourcing, and manufacturing. The authors analyze the degree of localization of leading TNC and supplies in each BRIC country, for each function, compare localization across BRIC countries, assess the future development of these markets, compare local capabilities and resources, and identify particularly promising combinations of functions and countries. Key trends in developing countries include continuing liberalization and globalization, increased foreign investment and ownership, and the increasing importance of follow-source and follow-design forces. The article concerns the trends and factors of national automotive industry formation in BRIC countries. Special emphasis is made on localization of R&D activities, final assembly operations and components production by global automotive companies in BRIC countries. It systemizes the factors of investment opportunities of different developing markets. It is concluded that active state regulation is playing the principle role in localization and catching-up process in automotive industry in developing countries. The comparison of the automotive industry in BRIC countries allows shedding light on the economic processes of emergence at large. There is a stark contrast in the capacities of development of the sector in these countries. This contrast serves as an analyzer between the modes of sector opening and the paths of technological catching-up that is the core of the phenomenon of emergence. The analysis and best practices presented in the topic, while focusing on the BRIC countries, are applicable also to other rapidly developing economies.

Mathematical modeling and optimal control of corruption dynamics

2018 ◽  
Vol 11 (06) ◽  
pp. 1850090 ◽  
Author(s):  
S. Athithan ◽  
Mini Ghosh ◽  
Xue-Zhi Li
Keyword(s):  
Mathematical Modeling ◽  
Optimal Control ◽  
Developing Countries ◽  
Numerical Simulations ◽  
Equilibrium Point ◽  
Present Model ◽  
Control Model ◽  
Asymptotically Stable ◽  
Epidemiological Modeling ◽  
Control Of Corruption

The problem of corruption is of serious concern in all the nations, more so in the developing countries. This paper presents the formulation of a corruption control model and its analysis using the theory of differential equations. We found the equilibria of the model and stability of these equilibria are discussed in detail. The threshold quantity [Formula: see text] which has a similar implication here as in the epidemiological modeling is obtained for the present model. The corruption free equilibrium is found to be stable when [Formula: see text] is less than [Formula: see text] and unstable for [Formula: see text]. The endemic equilibrium which signifies the presence of corrupted individuals in the society exists only when [Formula: see text]. This equilibrium point is locally asymptotically stable whenever it exists. We perform extensive numerical simulations to support the analytical findings. Furthermore, we extend the model to include optimal control and the optimal control profile is obtained to get the maximum control within a stipulated period of time. Our presented results show that the level of corruption in the society can be reduced if corruption control efforts through media/punishments etc. are increased and put in place.

scholarly journals Governance, Regulations, Trade Openness and FDI Inflows: Empirical Study

2015 ◽  
Vol 7 (12) ◽  
pp. 44 ◽  
Author(s):  
Marwan Ahmad Alshammari ◽  
Mosab Amjad Hammoudeh ◽  
Milos Pavlovic
Keyword(s):  
Quality Control ◽  
Empirical Study ◽  
International Business ◽  
Trade Openness ◽  
Future Directions ◽  
Fdi Inflows ◽  
Governance Effectiveness ◽  
Potential Impact ◽  
Control Of Corruption

Governance effectiveness and regulation quality have been drawing the attention in the international business arena, yet, there has not been a consensus findings regarding its potential impact on the FDI inflows. In this paper, we examine the possible links between the governments’ effectiveness and their regulation quality and the amount of FDI inflows using the existing literature and theories in the economic and international business fields. We find that regulation quality, control of corruption, and trade openness have mixed results, suggesting that further exploration is needed in this field. Results are explained and future directions are suggested based upon the empirical findings.

IMPACTS OF FINANCIAL INCLUSION ON POVERTY AND INCOME INEQUALITY IN DEVELOPING ASIA

2021 ◽  
pp. 1-17
Author(s):  
WARATTAYA CHINNAKUM
Keyword(s):  
Developing Countries ◽  
Income Inequality ◽  
Low Income ◽  
Financial Services ◽  
Trade Openness ◽  
Generalized Method Of Moments ◽  
Principal Component ◽  
Financial Inclusion ◽  
Poor Households ◽  
Low Income Groups

This study investigates the impacts of financial inclusion on poverty and income inequality in 27 developing countries in Asia during 2004–2019 based on a composite financial inclusion index (FII) constructed using principal component analysis (PCA). The generalized method of moments (GMM) was employed for the estimation. The results show that financial inclusion can influence the reduction in both poverty and income inequality. The empirical findings also reveal the contribution of such control variables as economic growth in decreasing income disparity and trade openness in helping improve the standard of living of poor households despite its tendency to co-vary with income inequality. The present empirical evidence supporting the role of financial inclusion in reducing poverty and income inequality in developing countries has led to a policy implication that financial sector development should focus on the availability, usage, and depth of credit to cover all poor households or low-income groups to help improve their access to financial services, enable them to increase their income, and reduce the income gap between poor and rich households.

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