Short-term Behavioural Equations for Developing Countries

2020 ◽  
pp. 249-262
Author(s):  
Giovanni Andrea Cornia
Keyword(s):  
Developing Countries ◽  
Money Demand ◽  
Size Structure ◽  
Structural Difference ◽  
Policy Changes ◽  
Access To Credit ◽  
Aggregate Consumption ◽  
Advanced Economies ◽  
The Impact

This chapter discusses the structural difference in family size, structure, location, and preferences, as well as the features of the formal and informal financial markets that determine the access to credit of various types of firms. It also reviews the role of the exchange rate, interest, rate and inflation in determining money demand. It then discusses behavioural equations for aggregate consumption, investment, and money demand that fit the reality of developing countries, and compares them with those discussed in Chapter 3 for the advanced economies. It shows that their inclusion in the IS-LM and AS-AD models often modifies the impact of policy changes and endogenous shocks in relation to those obtained in the advanced economies.

The Role of Mobile Money in Moderating Financial Exclusion: A Tanzanian Experience

2020 ◽  
Vol 2 ◽  
pp. 1-24 ◽  
Author(s):  
Deogratius Joseph Mhella
Keyword(s):  
Developing Countries ◽  
Financial Institutions ◽  
Banking Sector ◽  
Research Question ◽  
Microfinance Institutions ◽  
Mobile Money ◽  
Access To Credit ◽  
Financial Exclusion

Prior to the advent of mobile money, the banking sector in most of the developing countries excluded certain segments of the population. The excluded populations were deemed as a risk to the banking sector. The banking sector did not work with cash stripped and the financially disenfranchised people. Financial exclusion persisted to incredibly higher levels. Those excluded did not have: bank accounts, savings in financial institutions, access to credit, loan and insurance services. The advent of mobile money moderated the very factors of financial exclusion that the banks failed to resolve. This paper explains how mobile money moderates the factors of financial exclusion that the banks and microfinance institutions have always failed to moderate. The paper seeks to answer the following research question: 'How has mobile money moderated the factors of financial exclusion that other financial institutions failed to resolve between 1960 and 2008? Tanzania has been chosen as a case study to show how mobile has succeeded in moderating financial exclusion in the period after 2008.

Could CSR improve the financial performance of developing countries’ firms? Analyses of mediating effect of intangible resources

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mohamed Hamdoun ◽  
Mohamed Akli Achabou ◽  
Sihem Dekhili
Keyword(s):  
Developing Countries ◽  
Human Capital ◽  
Financial Performance ◽  
Competitive Advantage ◽  
Mediating Effect ◽  
Social Dimension ◽  
Content Type ◽  
Intangible Resources ◽  
The Impact

Purpose This paper aims to examine the link between corporate social responsibility (CSR) and financial performance in the context of developing countries. More specifically, the mediating role of a firm’s competitive advantage and intangible resources, namely, human capital and reputation are studied. Design/methodology/approach The study considered a sample of 100 Tunisian firms. The analysis makes use of the structural equation modelling method to explore the relationship between CSR and financial performance, by including mediator variables. Findings The results confirm that CSR has no significant direct effect on financial performance. In particular, they indicate that the social dimension of CSR has a negative impact on performance. However, CSR does have a positive impact on competitive advantage via the two intangible resources considered, human capital and company reputation. Research limitations/implications The research fills a gap that occurred in the previous literature. In effect, previous studies focussed only on the direct link between CSR and financial performance. In addition, it enriches the limited literature on CSR strategies in the context of developing countries. However, further studies should explore the opposite relationship, i.e. the impact of financial performance on CSR strategy. In addition, the authors believe that amongst other potential research avenues, it would be interesting to study the moderating role of the activity sector. Practical implications From a practical point of view, this study suggests new applications with respect to the link between CSR and financial performance. To enhance their company’s financial performance, managers need to ensure that intangible resources are managed efficiently. Originality/value The paper contributes to the literature by examining how a firm’s intangible resources mediate between CSR and competitive advantage and how competitive advantage mediates between intangible resources and financial performance. Second originality is related to the study of the link between CSR and the financial performance of business organisations in the context of a developing country.

scholarly journals Foreign Shareholdings Impact on Banks Efficiency and Moderating Role of Corporate Governance

2019 ◽  
Vol 8 (2S9) ◽  
pp. 414-425
Keyword(s):  
Developing Countries ◽  
Corporate Governance ◽  
Country Of Origin ◽  
Developed Countries ◽  
Moderating Effect ◽  
Due Diligence ◽  
The Board Of Directors ◽  
The Impact ◽  
Moderating Role

The research investigate the impact of foreign shareholding originated from developed and developing countries on the efficiency of acquired local banks in Indonesia during 2007-2017 by including Corporate Governance as a moderating variable. Methodology: Using the secondary aggregate data of 29 commercial banks acquired by foreign shareholders, a panel regression model using econometrics methods of GLS, and DEA were applied to examine the effects of percentage of foreign shareholdings on efficiency of the acquired local banks. The main findings; First, percentage of foreign shareholdings positively affecting efficiency of acquired local banks only if the foreign shareholders is originated from developed countries. Second, the level of economic advancement of the country of origin of foreign shareholders has significant effects on the efficiency of the acquired local banks. Third, the increase in the size of the Board of Directors tends to decrease the efficiency of the acquired local banks and fourth, the presence of Foreign Director has a positive moderating effect on strengthening the effect of percentage of foreign shareholdings on the efficiency of the acquired local banks. Overall, the originality of this studies is that the percentage of foreign shareholdings and its country of origin are two combined factors that cannot be separated in affecting the level of efficiency of its acquired local bank and the fact of significant positive moderating effect of Foreign Director. As policy consideration, monetary authority need to perform strict due diligence on prospective foreign shareholders specifically originated from developing countries, advise banks to maintain the existence of Foreign Director and to encourage small local banks to be merged prior to the acquisition by foreign shareholders.

Marketing to the “middle of the pyramid” in emerging markets using a social network perspective

2014 ◽  
Vol 9 (3) ◽  
pp. 400-423 ◽  
Author(s):  
Tendai Chikweche ◽  
Richard Fletcher
Keyword(s):  
Social Networks ◽  
Middle Class ◽  
Potential Role ◽  
Content Type ◽  
Business Executives ◽  
Advanced Economies ◽  
Sub Saharan ◽  
Corporate Social ◽  
The Impact

Purpose – The purpose of this paper is to expand knowledge about how middle class consumers in Sub-Saharan African markets behave, focusing on the potential role of social networks and the subsequent interactions that take place between these consumers and firms. Design/methodology/approach – A qualitative research method approach comprising personal interviews and observations targeted at consumers and business executives was used covering all four countries. Findings – Key findings include identification of middle of the pyramid (MOP) social networks, their impact on consumer behaviour and nature of consumer and firm interactions that take place as a result of the impact of social networks. Research limitations/implications – The sample size was restricted to 80 consumers in each of the four countries. This might limit generalisability. Practical implications – The study provides managers with insights on the potential role of social networks on marketing to the MOP in Africa. Social implications – The study provides managers with insights on the potential opportunities for corporate social responsibility solutions at the MOP. Originality/value – Research into the middle class in markets other than western advanced economies is a relatively new area of study. The majority of studies on the middle class have focused on North America and Europe ignoring the merging middle class in Africa. Hence, this research expands knowledge by providing basis for exploring new insights on the emerging marketing opportunity within the middle class in Africa.

The Impact of Reinsurance

2021 ◽  
Author(s):  
Niels Viggo Haueter
Keyword(s):  
Economic Growth ◽  
Developing Countries ◽  
Insurance Industry ◽  
Natural Catastrophes ◽  
Security Interest ◽  
Environmental Deterioration ◽  
Stabilizing Effect ◽  
The 1960S ◽  
The Impact

Reinsurance is perceived to have a stabilizing effect on the direct insurance industry and thereby on the economy overall. Yet, research into how exactly reinsurance impacts various areas is scarce. Traditionally, studying the impact of reinsurance used to be in the domain of actuaries; since the 1960s, they have tried to assess how different contract elements can provide what came to be called “optimal reinsurance.” In the 2010s, such research was intensified in developing countries with the aim to deploy reinsurance to support economic growth and security. Interest in reinsurance increased when the industry became more visible in the 1990s as the impact of natural catastrophes started being linked to a changing climate. Reinsurers emerged as spokespeople for climate-related issues, and the industry took a lead role in arguing in favor of implementing measures to reduce environmental deterioration. Reinsurers, it was argued, have a vested interest in managing the impact of natural catastrophes. This triggered discussions about the role of reinsurance overall and about how to assess its impact. In the wake of the financial crisis of 2007 and 2008, interest in reinsurance again surged, this time due to perceived systemic impacts.

The role of audit committees in mitigating earnings management: evidence from Jordan

2022 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Taha Almarayeh ◽  
Modar Abdullatif ◽  
Beatriz Aibar-Guzmán
Keyword(s):  
Developing Countries ◽  
Earnings Management ◽  
Audit Committee ◽  
Discretionary Accruals ◽  
Least Square ◽  
Audit Committees ◽  
Institutional Setting ◽  
Content Type ◽  
The Impact

PurposeThis study examines the relationship between audit committees (ACs) and earnings management (EM) in the developing country context of Jordan. In particular, it investigates whether audit committee attributes, including their size, independence, expertise and meetings, are able to restrict discretionary accruals as a proxy for EM.Design/methodology/approachThe generalized least square (GLS) regression was used to study the association between audit committee attributes and discretionary accruals, as a proxy of EM, for a sample of industrial firms listed on the Amman Stock Exchange (ASE) during the period 2012–2020. Data were obtained from the firms' annual reports.FindingsThe regression results indicate that audit committee independence is the only audit committee attribute that seems to improve the effectiveness of ACs, in that it is significantly associated with less EM, while other audit committee attributes that were tested do not show statistically significant associations.Research limitations/implicationsIn emerging markets, like Jordan, ACs may not be an efficient monitoring mechanism; therefore, it can be argued that the prediction made by the agency theory about the role of ACs in mitigating opportunistic EM activities does not necessarily apply to all contexts.Practical implicationsA better understanding of audit committee effectiveness in developing countries could help regulators in these countries assess the impact of planned corporate governance (CG) reforms and to better monitor and enhance the performance of ACs.Social implicationsIn a setting characterized by closely held companies, high power distance and low demand for high-quality CG mechanisms, this study contributes to understanding how this business system operates, and how improving CG mechanisms could be successful in such cultures.Originality/valueThis study investigates the under-researched relationship between audit committee characteristics and EM in developing countries. In so doing, it aims to provide new insights into this relationship within the developing context case of Jordan, including if and how the institutional setting influences this relationship.

The changing role of children’s charities delivering early intervention services

2020 ◽  
pp. 145-176
Author(s):  
Alison Body
Keyword(s):  
Early Intervention ◽  
The State ◽  
Policy Changes ◽  
Early Intervention Services ◽  
Changing Environments ◽  
Definition Of ◽  
The Impact ◽  
Changing Role ◽  
Preventative Services

In chapter 6 we explore the impact of commissioning and policy changes on early intervention and preventative services for children delivered by the charitable sector. The definition of early intervention and preventative services is highly contested and politicised within policy and commissioning processes. This reflects an ongoing debate regarding the shifting paradigm of prevention. As the commissioning narrative has developed, there has been an overall disengagement between the voluntary sector providers and State. As the charitable sector is increasingly exposed to intensifying marketization, polarisation of relationships increases. We identify here three ‘types’ of organisational responses to this ever-changing environments; conformers – those charities who align themselves close to the State and regularly reinterpret their mission to fit State logic; the outliers – those charities which reject State approaches to early intervention and seek to deliver services completely independently of the State; and the intermediaries – those charities which walk between conformity and dissent, working with the State when necessary or too their advantage, and walking away when not. We discuss how these types fundamentally alter children’s charities perspectives and experiences of commissioning and the impact this has on their wider work.

Impact of Mobile the Wireless Technologies on Developing Countries

2011 ◽  
pp. 96-116
Author(s):  
Ran Neuman ◽  
P.C. Deans
Keyword(s):  
Developing Countries ◽  
Economic Benefits ◽  
Infrastructure Development ◽  
Low Literacy ◽  
Wireless Technologies ◽  
Business Opportunity ◽  
Technological Advances ◽  
The Impact ◽  
The Village

This chapter discusses the impact of mobile and wireless technologies on developing countries. The new technological advances and capabilities allow developing countries the opportunity to “leapfrog” years of wired technology and infrastructure development. Based on this study, it appears that mobile and wireless technologies will not be enough to truly advance developing countries. In order to truly “leapfrog” and make up for years of technological advancements, developing countries must consider dealing with government corruption, violation of human rights and extremely low literacy rates. All those factors will derail the effort to “leapfrog” and gain economic benefits from technological advancements. The Village Cell Phone Program is an example where mobile technology created a business opportunity while at the same time changing the role of women in society. Any implementation of mobile and wireless technology must be complemented with social and political reform in order to be successful.

Surviving from garbage: the role of informal waste-pickers in a dynamic model of solid-waste management in developing countries

2006 ◽  
Vol 11 (3) ◽  
pp. 371-391 ◽  
Author(s):  
ROCÍO DEL PILAR MORENO-SÁNCHEZ ◽  
JORGE HIGINIO MALDONADO
Keyword(s):  
Developing Countries ◽  
Waste Management ◽  
Solid Waste ◽  
Dynamic Model ◽  
Solid Waste Management ◽  
Waste Collection ◽  
Management Policies ◽  
The Impact ◽  
Waste Pickers

In developing countries, informal waste-pickers (known as scavengers) play an important role in solid waste management systems, acting in a parallel way to formal waste collection and disposal agents. Scavengers collect, from the streets, dumpsites, or landfills, re-usable and recyclable material that can be reincorporated into the economy's production process. Despite the benefits that they generate to society, waste-pickers are ignored when waste management policies are formulated. The purpose of this paper is to integrate the role of scavengers in a dynamic model of production, consumption, and recovery, and to show that, in an economy producing solid waste, efficiency can be reached using a set of specific and complementary policies: a tax on virgin materials use, a tax on consumption and disposal, and a subsidy to the recovery of material. A numerical simulation is performed to evaluate the impact of these policies on landfill lifetime and natural resource stocks. A discussion on the implementation of these instruments is also included.

The Madrid International Plan of Action on Ageing: from conception to implementation

2004 ◽  
Vol 24 (2) ◽  
pp. 147-165 ◽  
Author(s):  
ALEXANDRE SIDORENKO ◽  
ALAN WALKER
Keyword(s):  
Developing Countries ◽  
United Nations ◽  
Monitoring And Evaluation ◽  
Active Participation ◽  
Population Ageing ◽  
Pivotal Role ◽  
Systematic Process ◽  
Current Century ◽  
The Impact

The Madrid International Plan of Action on Ageing is the most important United Nations (UN) document on population ageing for 20 years and sets the context for global policies on ageing for the current century. Drawing from the authors' active participation in the preparation of the draft that formed the basis of the Madrid Plan, the primary purpose of this article is to describe the two-year process of development of the Plan. Then the main features of the Plan are outlined, including the pivotal role of the society for all ages concept and its thematic foundations. The Madrid Plan is contrasted with its Vienna predecessor of 20 years earlier – the priority given to developing countries in the former is identified as one of the key differences between them. Following a brief outline of the implementation and monitoring processes for the Madrid Plan, a model is presented as a potential template for use in evaluating the impact of the Plan and, especially, its effectiveness in improving the conditions of older people's lives. It is argued that a systematic process of monitoring and evaluation is required if the Plan is not to suffer the fate of being regarded as yet another worthy ‘wish list’.

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