Liquidity Risk and Long-Term Finance: Evidence from a Natural Experiment

2021 ◽  
Author(s):  
M Ali Choudhary ◽  
Nicola Limodio
Keyword(s):  
Central Bank ◽  
Low Income ◽  
Natural Experiment ◽  
Liquidity Risk ◽  
Bank Lending ◽  
Low Income Countries ◽  
Short Term ◽  
Experimental Variation ◽  
Quasi Experimental

Abstract Banks in low-income countries face severe liquidity risk due to volatile deposits, which destabilize their funding, and dysfunctional liquidity markets, which induce expensive interbank and central bank lending. Such liquidity risk dissuades the transformation of short-term deposits into long-term loans and deters long-term investment. To validate this mechanism, we exploit a Sharia-compliant levy in Pakistan, which generates unintended and quasi-experimental variation in liquidity risk, with data from the credit registry and firm imports. We find that banks with a stronger exposure to liquidity risk lower their supply of long-term finance, which reduces the long-term investment of connected firms.

A Decade After the 2009 Global Recession: Macroeconomic Developments

2021 ◽  
pp. 2150011
Author(s):  
Wee Chian Koh ◽  
Shu Yu
Keyword(s):  
Low Income ◽  
Developing Economies ◽  
Emerging Market ◽  
Bank Lending ◽  
Low Income Countries ◽  
Short Term ◽  
Fiscal Stimulus ◽  
Cross Border ◽  
Global Recession ◽  
The Impact

Emerging market and developing economies (EMDEs) weathered the 2009 global recession relatively well. However, the impact of the global recession varied across economies. EMDEs with stronger pre-crisis fundamentals — such as large foreign exchange reserves, sound fiscal positions, and low inflation — suffered milder growth slowdowns, in part due to their greater capacity to engage in monetary and fiscal stimulus. Low-income countries were also resilient, as foreign aid and inflows of remittances remained relatively stable. In contrast, EMDEs that were heavily dependent on short-term capital flows — such as portfolio investment and cross-border bank lending — fared less well, especially those in Europe and Central Asia. A key lesson for EMDEs is the need to strengthen macroeconomic frameworks and create policy space to prepare for future global downturns.

Malnutrition and “Nutrition Engineering” in Low-Income Countries: A Rejoinder

1993 ◽  
Vol 23 (3) ◽  
pp. 615-619 ◽  
Author(s):  
Alan Berg
Keyword(s):  
Political Economy ◽  
Low Income ◽  
Low Income Countries ◽  
The Political ◽  
Short Term ◽  
Technical Solutions

Malnutrition cannot be reduced to any single causality. While the political economy explanation is correct, suffering must be addressed in the short term by the available technical solutions. More work is needed on both the long-term causes of malnutrition and on methods of prophylaxis and treatment for nutritional diseases.

scholarly journals Why May COVID-19 Overwhelm Low-Income Countries Like Pakistan?

2020 ◽  
pp. 1-5 ◽  
Author(s):  
Inayat Ali ◽  
Shahbaz Ali
Keyword(s):  
Health Care ◽  
Health Care System ◽  
Low Income ◽  
Low Income Countries ◽  
Critical Event ◽  
Short Term ◽  
The Face ◽  
Significant Attention ◽  
Care System

ABSTRACT Since the coronavirus disease 2019, called COVID-19, has overwhelmed the high-income countries with ample resources and established health-care system, we argue that there are plausible concerns why it may devastate the low-income countries like Pakistan. Focusing on Pakistan, we highlight the underlying reasons, eg, demographic features, ineffective health-care system, economic and political inequalities, corruption, and socio-cultural characteristics, that create fertile grounds for COVID-19 to overwhelm low-income countries. This study presents Pakistan’s brief profile to demonstrate these underlying structures that may make low-income countries like Pakistan more vulnerable in the face of an unceasing COVID-19 pandemic. The study concludes that the country may make appropriate and possibly effective short-term preparedness measures to halt or slow the transmission of the virus, and deal with its current implications as well as it may pay significant attention to long-term measures to deal effectively with COVID-19’s longer-term effects. These measures will help them, including Pakistan, to deal appropriately with a similar future critical event.

scholarly journals Distributive Politics, Nature of Government Spending and Economic Growth in a Low Income Democracy

2011 ◽  
Vol 16 (30) ◽  
pp. 31-49
Author(s):  
Joydeb Sasmal ◽  
Keyword(s):  
Economic Growth ◽  
Low Income ◽  
Government Spending ◽  
Public Expenditure ◽  
Low Income Countries ◽  
Short Term ◽  
Tax Rate ◽  
Behavioral Parameters ◽  
The Government

In this paper we analyze how the government in a democratic setup of the developing world manipulates the fiscal instruments to maximize its political gain so that it can retain power. The government and the voters in low income countries are generally selfish and myopic in the sense that the electorates prefer to get direct and immediate benefits from the government while the government, in turn, tries to seek majority support in the election, by adopting short term and distributive policies instead of going for long term growth. Using the theoretical structure of the existing literature, and making modifications therein, this study demonstrates that the optimal tax rate, public expenditure shares and growth rate are determined in terms of technological and behavioral parameters. The simulation results show that if political gain from distributive policies is high, the government will allocate a greater share of the fund for distributive purposes adversely affecting economic growth.

scholarly journals Integrated photothermal decontamination device for N95 respirators

2021 ◽  
Vol 11 (1) ◽  
Author(s):  
Marcelo Muñoz ◽  
Maxime Comtois-Bona ◽  
David Cortes ◽  
Cagla Eren Cimenci ◽  
Qiujiang Du ◽  
...  
Keyword(s):  
Low Income ◽  
Temperature Treatment ◽  
Low Income Countries ◽  
Effective Vaccine ◽  
Global Pandemic ◽  
Photothermal Treatment ◽  
Mild Temperature ◽  
N95 Respirators ◽  
Uv C

AbstractThe severe acute respiratory syndrome coronavirus 2 (SARS-CoV-2) responsible for the COVID-19 global pandemic has infected over 25 million people worldwide and resulted in the death of millions. The COVID-19 pandemic has also resulted in a shortage of personal protective equipment (PPE) in many regions around the world, particularly in middle- and low-income countries. The shortages of PPE, such as N95 respirators, is something that will persist until an effective vaccine is made available. Thus, devices that while being easy to operate can also be rapidly deployed in health centers, and long-term residences without the need for major structural overhaul are instrumental to sustainably use N95 respirators. In this report, we present the design and validation of a decontamination device that combines UV-C & B irradiation with mild-temperature treatment. The device can decontaminate up to 20 masks in a cycle of < 30 min. The decontamination process did not damage or reduce the filtering capacity of the masks. Further, the efficacy of the device to eliminate microbes and viruses from the masks was also evaluated. The photothermal treatment of our device was capable of eradicating > 99.9999% of the bacteria and > 99.99% of the virus tested.

scholarly journals Journal of the History of Economic Thought Preprints - Limits to Arbitrage and Interest Rates: A Debate Between Keynes, Hawtrey and Hicks

2018 ◽  
Author(s):  
Lucy BRILLANT
Keyword(s):  
Business Cycle ◽  
Central Bank ◽  
Interest Rates ◽  
Economic Thought ◽  
History Of Economic Thought ◽  
Short Term ◽  
Limits To Arbitrage ◽  
History Of ◽  
The Business Cycle

This paper deals with a debate between Hawtrey, Hicks and Keynes concerning the capacity of the central bank to influence the short-term and the long-term rates of interest. Both Hawtrey and Keynes considered the central bank’s ability to influence short-term rates of interest. However, they do not put the same emphasis on the study of the long-term rates of interest. According to Keynes, long-term rates are influenced by future expected short-term rates (1930, 1936), whereas for Hawtrey (1932, 1937, 1938), long-term rates are more dependent on the business cycle. Short-term rates do not have much effect on long-term rates according to Hawtrey. In 1939, Hicks enters the controversy, giving credit to both Hawtrey’s and Keynes’s theories, and also introducing limits to the operations of arbitrage. He thus presented a nuanced view.

scholarly journals Do the Green Credit Guidelines Affect Renewable Energy Investment? Empirical Research from China

2021 ◽  
Vol 13 (16) ◽  
pp. 9331
Author(s):  
Kexian Zhang ◽  
Yan Wang ◽  
Zimei Huang
Keyword(s):  
Renewable Energy ◽  
Natural Experiment ◽  
Energy Transformation ◽  
Credit Policy ◽  
Short Term ◽  
Energy Investment ◽  
Mediating Role ◽  
Green Development ◽  
Renewable Energy Investment

How to promote renewable energy investment is central to energy transformation and green development. To take China’s “green credit guidelines” policy as a quasi-natural experiment, we investigate the impacts of green credit policy on renewable energy investment. Using the samples of 1021 Chinese listed enterprises during 2007–2017, we find that: Firstly, the introduction of the green credit guidelines has promoted renewable energy investment. Secondly, short-term debts play a mediating role in the impacts of green credit guidelines on renewable energy investment, while long-term debts play a masking role, and financing constraints do not play a significant role. Thirdly, the heterogeneous impacts on renewable energy investment are reflected in different ownerships and enterprise scales, with significant impacts on the state-owned enterprises and small ones.

scholarly journals Fiscal Deficit and Its Less Inflationary Sources of Borrowing with the Moderating Role of Political Instability: Evidence from Malaysia

2020 ◽  
Vol 12 (1) ◽  
pp. 366 ◽  
Author(s):  
Hanana Khan ◽  
Maran Marimuthu ◽  
Fong-Woon Lai
Keyword(s):  
Central Bank ◽  
Time Series Data ◽  
Political Instability ◽  
Series Data ◽  
Fiscal Deficit ◽  
Short Term ◽  
High Tendency ◽  
External Sources ◽  
Domestic Sources

Theoretically, fiscal deficit may be inflationary, but its sources of financing can bring change in significance and impact. Malaysia is facing a high tendency of fiscal deficit from the last decade. To finance the fiscal deficit, which sources are less inflationary in the country? To answer this question, the study aims to analyze the quarterly financial time-series data covering the period from 2000 Q1 to 2018 Q4 of Malaysia using recent econometric techniques. The analysis is carried out in three stages. In the first stage, it is tested that the fiscal deficit is inflationary along with the money supply. In the second stage, it is determined that political instability moderates the link between inflation and the fiscal deficit and the external sources of borrowing in the short-run, while the domestic sources of borrowing in the long run are found inflationary. In the third stage, the central bank borrowing and Bank institutions borrowing from the domestic sources and the short-term borrowing from the external sources are found less inflationary. The findings suggest that borrowing through the central bank and bank institutions (domestic sources) is less inflationary in the long term; while for a short-term policy, from external sources, only short-term borrowing is less inflationary; medium- and long-term borrowing are much more sensitive to inflation.

scholarly journals Position of Scientific Oncological Societies Towards Biosimilar Antibodies

Breast Care ◽  
2019 ◽  
Vol 14 (1) ◽  
pp. 5-8 ◽  
Author(s):  
Bernhard Wörmann ◽  
Marianne Sinn
Keyword(s):  
Monoclonal Antibodies ◽  
Low Income ◽  
Financial Burden ◽  
Informed Consent Process ◽  
Low Income Countries ◽  
Efficacy And Safety ◽  
Economic Competition ◽  
Off Label ◽  
Careful Documentation

First biosimilars of monoclonal antibodies have recently been approved in oncology. Biosimilars enable economic competition, alleviate the financial burden for insurances, and may facilitate access to these drugs in low-income countries. Biosimilars are not completely identical to the original drug. The approval of biosimilars is only partially based on results of randomized clinical studies. In the introduction phase of new biosimilars, this can lead to uncertainties for patients and physicians. Based on the current clinical data and experiences, biosimilars of monoclonal antibodies in oncology show no significant differences in pharmacokinetics, efficacy, and safety in comparison to the patented originals. Scientific medical societies recommend the use of biosimilar monoclonal antibodies and support switching in long-term treatments. However, the use of biosimilars for off-label indications requires additional attention towards efficacy and safety. Active counselling of the patient by the treating physician is the most important step in the informed consent process, especially when switching from an original to a biosimilar. Careful documentation of the prescribed drug and enhanced pharmacovigilance are recommended for the use of biosimilars.

scholarly journals All insects are equal, but some insects are more equal than others

2018 ◽  
Vol 120 (4) ◽  
pp. 852-863 ◽  
Author(s):  
Arnout R.H. Fischer ◽  
L.P.A. (Bea) Steenbekkers
Keyword(s):  
Design Methodology ◽  
Prior Experience ◽  
Future Research ◽  
Valuable Contribution ◽  
Short Term ◽  
Content Type ◽  
Quasi Experimental ◽  
Insects As Food ◽  
Practical Implications

Purpose Lack of acceptance of insects as food is considered a barrier against societal adoption of the potentially valuable contribution of insects to human foods. An underlying barrier may be that insects are lumped together as one group, while consumers typically try specific insects. The purpose of this paper is to investigate the ways in which Dutch consumers, with and without insect tasting experience, are more or less willing to eat different insects. Design/methodology/approach In a quasi-experimental study (n=140), the participants with and without prior experience in eating insects were asked to give their willingness to eat a range of insects, and their attitudes and disgust towards eating insects. Findings Insects promoted in the market were more preferred than the less marketed insects, and a subgroup of preferred insects for participants with experience in eating insects was formed. Research limitations/implications Although well-known insects were more preferred, general willingness to eat remained low for all participants. The results indicate that in future research on insects as food the specific insects used should be taken into account. Practical implications Continued promotion of specific, carefully targeted, insects may not lead to short-term uptake of insects as food, but may contribute to willingness to eat insects as human food in the long term. Originality/value The paper shows substantial differences between consumers who have and who have not previously tasted insects, with higher acceptance of people with experience in tasting insects for the specific insects that are frequently promoted beyond their generally more positive attitude towards eating insects.

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