External terms-of-trade and labour market imperfections in developing countries

2018 ◽  
Vol 11 (1) ◽  
pp. 22-33
Author(s):  
Sarbajit Chaudhuri ◽  
Anindya Biswas
Keyword(s):  
Developing Countries ◽  
Labour Market ◽  
Full Employment ◽  
Empirical Studies ◽  
Terms Of Trade ◽  
Content Type ◽  
Trade Shocks ◽  
Welfare Consequence ◽  
Analytical Result ◽  
Developed Nations

Purpose Some recent empirical studies have found that developing countries are more prone to external terms-of-trade shocks compared to developed nations. With this background, the purpose of this paper is to the question of whether developing countries possess any built-in mechanism that can cope with external terms-of-trade (TOT) shocks both theoretically and empirically. Design/methodology/approach This paper uses a two-sector, full-employment general equilibrium model with endogenous labour market distortion to conduct its theoretical analysis and then uses an annual panel dataset of 13 small developing countries over the recent time period of 2000-2012 to substantiate its theoretical findings. Findings Theoretically, this study finds that developing countries possess an inherent shock-absorbing mechanism that stems from their peculiar institutional characteristics and can lessen the gravity of detrimental welfare consequence of exogenous TOT movements. This analytical result has been found to be empirically valid based on a panel dataset of 13 countries from 2000-2012. Originality/value The authors’ analyses suggest that that the developing countries should take utmost caution before adopting the policy of labour market reform because these might impair the effectiveness of their in-built shock-absorbing mechanism against adverse international price movements.

When foreign brands appear local, and local brands appear foreign

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Bo Chen
Keyword(s):  
Developing Countries ◽  
Purchase Intention ◽  
Empirical Studies ◽  
Country Of Origin ◽  
Developed Countries ◽  
Brand Names ◽  
Content Type ◽  
Product Categories ◽  
Foreign Brand ◽  
Foreign Brands

PurposeBoth foreign and local companies frequently name their brands in foreign language on the market of developing countries, and some of them choose to disclose the brands' country of origin to consumers. The purpose of this research is to investigate the joint effects between the practices of disclosing the actual country of origin of the brands and the language of the brand names on consumers' purchase intention for foreign brands and local brands in developing countries.Design/methodology/approachThe proposed hypotheses were tested in two studies, namely an experiment and a field experimental survey, with stimuli from two product categories.FindingsThe results of the two empirical studies with Chinese participants consistently demonstrate that revealing the actual country of origin of the brands undermines consumers' purchase intention for local brands that use foreign brand names, but does not impact consumers' purchase intention for foreign brands that use local brand names.Originality/valueThis research first investigates the effects of adapting the brand names into local language of developing countries for brands from developed countries on consumers' purchase intention, which provides new insight into the literature on foreign branding and country of origin effects as well as practical implications for brand managers.

How does finance influence labour market outcomes? A review of empirical studies

2020 ◽  
Vol 47 (6) ◽  
pp. 1197-1232
Author(s):  
Mark Heil
Keyword(s):  
Labour Market ◽  
Capital Accumulation ◽  
Empirical Studies ◽  
Labour Productivity ◽  
National Income ◽  
Developed Countries ◽  
Market Outcomes ◽  
Content Type ◽  
Corporate Managers ◽  
Labour Market Outcomes

PurposeThis paper reviews economic studies on the effects of various aspects of finance on labour market outcomes.Design/methodology/approachThe paper is a systematic literature review that reviews the weight of the evidence on the relationships between specific elements of finance and labour outcomes. The review is divided into three major sections: (1) job quantity and job quality; (2) distributional effects; and (3) resilience and adaptability.FindingsFinance interacts with labour market institutions to jointly determine labour outcomes. Firm financial structures influence their labour practices – highly leveraged firms show greater employment volatility during cyclical fluctuations, and leverage strengthens firm bargaining power in labour negotiations. Bank deregulation has mixed impacts on labour depending upon the state of prior bank regulations and labour markets. Leveraged buyouts tend to dampen acquired-firm job growth as they pursue labour productivity gains. The shareholder value movement may contribute to short-termism among corporate managers, which can divert funds away from firm capital accumulation toward financial markets, and crowd out productive investment. Declining wage shares of national income in most OECD countries since 1990 may be driven in part by financial globalisation. The financial sector contributes to rising income concentration near the top of the distribution in developed countries. The availability of finance is associated with increased reallocation of labour, which may either enhance or impede productivity growth. Finally, rising interest rate environments and homeowners with mortgage balances that exceed their home's value may reduce labour mobility rates.Originality/valueThis review contributes to the understanding of the effects of finance on labour by reviewing and synthesising a large volume of literature.

CSR disclosure in developing and developed countries: a comparative study

2019 ◽  
Vol 11 (1) ◽  
pp. 1-26 ◽  
Author(s):  
Aparna Bhatia ◽  
Binny Makkar
Keyword(s):  
South Africa ◽  
Developing Countries ◽  
Developed Countries ◽  
Environmental Conservation ◽  
Content Type ◽  
The Usa ◽  
Csr Disclosure ◽  
The Uk ◽  
Developed Nations ◽  
Developing And Developed Countries

Purpose This paper aims to examine and compare the nature and extent of corporate social responsibility (CSR) reporting practices of companies in developing (BRICS [Brazil, Russia, India, China and South Africa]) and developed (the USA and the UK) countries. Design/methodology/approach Content analysis is conducted on the annual reports and websites of 325 companies listed on stock exchanges of developing markets and of developed markets (Brazil – IBrX 100, 46 companies; Russia – Broad Market Index, 50 companies; India – BSE 100, 50 companies; China – SSE 180, 29 companies; South Africa – FTSE/JSE All Share index, 50 companies; the USA – NYSE 100, 50 companies; the UK – FTSE 100, 50 companies). Descriptives are used to calculate company wise and item wise scores. T-test analysis is applied to check for significant differences between mean scores of developing and developed countries. Findings The findings of the study reflect that developed countries have higher CSR disclosure scores than developing countries. Overall, mean CSR disclosure score of developed countries is 53.5%, followed by that of the developing countries at 49.4%. Developed countries take lead in CSR disclosure for all the five categories, namely, human resources, community, environment, customer and product and others. The results of independent sample T-test suggest that mean disclosure score of developing nations is significantly different from developed nations. Practical implications As suggested by the results, the gap in the CSR disclosure scores between developing and developed group of countries is not an alarming one. However, developing countries should practice CSR in spirit and not just in letter. Focus should not be on just filling the pages in black and white, rather the essence of CSR should be attained for balanced development of the country. For instance, though developing country like India has high score of CSR disclosure in contrast to each of the developed country taken in the sample, yet the country is still battling with several issues such as poverty, over-population, corruption, poor standard of working conditions for the employees and environmental conservation. Sustenance should focus upon renewable sources of energy; efforts of employees should be acknowledged offering flexible working hours; consumer trust should be built by communicating authentic and accurate information about the product. As developing countries encounter several social and environmental problems, companies must endeavor to build a healthy nation keeping in mind the welfare of all stakeholders by practicing CSR. Originality/value This study overcomes the limitations of prior cross-country studies by taking a better representative sample with greater number of countries belonging to identifiable group of “developing” and “developed” nations and thus attempts to improve generalization and authenticity of results.

Full employment will boost US wage growth

2016 ◽  
Keyword(s):  
Monetary Policy ◽  
Labour Market ◽  
Federal Reserve ◽  
Full Employment ◽  
Participation Rate ◽  
Job Seekers ◽  
Secular Stagnation ◽  
Content Type ◽  
Percentage Points ◽  
Jobless Rate

Significance The jobless rate is expected to stay unchanged at 4.9%, its lowest level since November 2007. This decline occurred despite a rebound in the participation rate, up 0.5 percentage points (pp) since September and back to its January 2015 level. Labour market behaviour will be a key determinant of the Federal Reserve (Fed)'s pace of monetary policy tightening this year. Impacts Higher cyclical unemployment may become structural through 'hysteresis', as job seekers become discouraged and stop looking for jobs. Structural declines in the participation rate may be one way in which 'secular stagnation' manifests in post-crisis economies. The Fed will monitor closely any overheating risk in the labour market, together with escalating wage and price pressures.

Adoption of and compliance with IFRS in developing countries

2016 ◽  
Vol 6 (1) ◽  
pp. 33-49 ◽  
Author(s):  
Khaled Samaha ◽  
Hichem Khlif
Keyword(s):  
Developing Countries ◽  
Empirical Studies ◽  
Developed Countries ◽  
Equity Capital ◽  
Economic Consequences ◽  
Future Research ◽  
Cost Of Equity Capital ◽  
Content Type ◽  
Ifrs Adoption ◽  
The Impact

Purpose – The purpose of this paper is to review a synthesis of theories and empirical studies dealing with the adoption of and compliance with IFRS in developing countries in an attempt to provide directions for future research. Design/methodology/approach – The review focusses on four main streams including: first, the motives for IFRS adoption; second, corporate characteristics and the degree of compliance with IFRS; third, the economic consequences of IFRS adoption and finally; fourth, the use of regulation as an enforcement mechanism to monitor compliance with IFRS. The authors review empirical studies specifically devoted to developing countries. Findings – Regarding the first stream relating to IFRS adoption, the macroeconomic decision of adopting IFRS in developing countries can be justified by two main theories which are: the economic theory of network (Katz and Shapiro, 1985) and isomorphism (DiMaggio and Powell, 1991), however, empirical evidence in developing countries to confirm these theories is limited. Regarding the second stream relating to corporate characteristics and the degree of compliance with IFRS, the authors find that the results are mixed. Regarding the third stream relating to the economic consequences of IFRS adoption, it seems that the evidence is still limited in developing countries especially with respect to the impact of IFRS adoption on foreign direct investment, cost of equity capital and earnings management. Regarding the fourth and final stream in relation to regulation, enforcement and compliance with IFRS, the authors find that research is very limited. It was evidenced in the very few research studies conducted, that global disclosure standards are optimal only if compliance is monitored and enforced by efficient institutions. Practical implications – The author’s study attempts to provide a foundational knowledge resource that will inform practitioners, researchers and regulators in developing countries about the relevance of the different theories that exist in the accounting literature to explain the adoption of and compliance with IFRS. Originality/value – Compared to developed countries, the four streams outlined remain under-researched in developing countries. Therefore, researchers should examine these topics in developing countries to inform practitioners, regulators and the capital market about the effects of adopting IFRS and their relevance to developing countries. In addition, researchers should embark on identifying new theories to explain the adoption of and compliance with IFRS in developing countries that take into consideration the socioeconomic culture of these settings.

Decades of public-private partnership in solid waste management

2017 ◽  
Vol 28 (1) ◽  
pp. 78-93 ◽  
Author(s):  
Emmanuel Yeboah-Assiamah ◽  
Kwame Asamoah ◽  
Thomas Agyekum Kyeremeh
Keyword(s):  
Developing Countries ◽  
Waste Management ◽  
Solid Waste ◽  
Solid Waste Management ◽  
Empirical Studies ◽  
Relevant Literature ◽  
Policy And Practice ◽  
Policy Makers ◽  
Content Type ◽  
Cascading Effect

Purpose The purpose of this paper is to examine empirical studies on public-private partnerships (PPPs) and solid waste management (SWM) in Ghana and India to synthesize the “crucial lessons” for urban managers and policy makers in developing countries. Design/methodology/approach A systematic review of empirical studies was carried out, the search process comprised four categories of keywords combined differently across three main search engines in order to obtain a pool of more relevant literature on the study. Sorting for relevance was done at various levels; retrospective content analysis of relevant empirical studies on PPP and SWM in Ghana and India was subsequently carried out to draw lessons and policy suggestions. Findings PPPs have mainly been impressive in coverage of waste collection in the Ghanaian context, whilst in India, emphasis has been on injection of technology and effectiveness into SWM. It is also observed that in both cases the PPP processes have lacked adequate openness, transparency and sufficient stakeholder engagement. In the Ghana cases, mostly, urban authorities hardly pay attention to details in the partnership deed and also ignore monitoring of private partners. Poorly performed PPPs do occur when one of the partners relent on his role which could have a cascading effect on other actors. Practical implications Whilst PPP is a strong candidate to address the SWM challenges of urban centers in developing countries, this does not necessarily come about by joining the bandwagon. Merely entering into a partnership deed with private waste management companies without paying due attention to details of the contract will usher urban managers into a state of schizophrenia. The paper presents five key lessons to inform policy and practice. Originality/value The paper draws lessons from multiple cases of PPPs in Ghana and India by synchronizing lessons adaptable to city authorities and policy makers in developing countries.

Does post-migration education improve labour market performance? Findings from four cities in Indonesia

2017 ◽  
Vol 44 (9) ◽  
pp. 1139-1153
Author(s):  
Devanto Shasta Pratomo
Keyword(s):  
Developing Countries ◽  
Labour Market ◽  
Market Performance ◽  
Multinomial Logit ◽  
Work Status ◽  
Urban Migration ◽  
Content Type ◽  
Recent Migrant ◽  
Urban Migrants ◽  
Rural Urban Migration

Purpose The purpose of this paper is twofold: first, to examine which factors are important in determining the post-migration education among rural-urban migrants in Indonesia. Second, to investigate whether investing in post-migration education in the cities improves the labour market performances of rural-urban migrants. The labour market performances are measured by the occupational (work) statuses and earnings (wages) at destination. Design/methodology/approach The determinants of post-migration education are estimated using a binary probit and ordinary least square, while a multinomial logit model and a two-step procedure of Lee’s selection-biased correction based on the multinomial logit are used to examine the effects of post-migration education on the labour market performances of migrants measured by occupational status and by wages. The main source of the data used in this study is the Rural-Urban Migration in China and Indonesia (RUMiCI) 2009-2011 survey conducted in the four largest recent migrant destination cities in Indonesia including Tangerang, Medan, Samarinda, and Makassar. Findings Post-migration education contributes significantly to the labour market performance in terms of work status and wages, compared to pre-migration education. In terms of work status, migrants with more post-migration education are more likely to be employed in the formal sector compared to migrants with less or no post-migration education. Relating to earnings, migrants with more post-migration education also tend to be paid more than those migrants with less or no post-migration education. Originality/value The role of post-migration education in the case of rural-urban migration particularly in developing countries is a relatively neglected area of research. One possible reason is because of the lack of data for rural-urban migration particularly in the case of developing countries. This study is taking advantage by using a new data set from RUMiCI focusing specifically on the rural-urban migrants in the four largest recent migrant destination cities in Indonesia including Tangerang, Medan, Samarinda, and Makassar.

scholarly journals Terms-of-Trade Shocks are Not all Alike

2020 ◽  
Vol 20 (280) ◽  
Author(s):  
Federico Di Pace ◽  
Luciana Juvenal ◽  
Ivan Petrella
Keyword(s):  
Developing Countries ◽  
Business Cycles ◽  
Economic Activity ◽  
Export Price ◽  
Import Price ◽  
Terms Of Trade ◽  
Price Shocks ◽  
Import Prices ◽  
Trade Shocks ◽  
Output Fluctuations

When analyzing terms-of-trade shocks, it is implicitly assumed that the economy responds symmetrically to changes in export and import prices. Using a sample of developing countries our paper shows that this is not the case. We construct export and import price indices using commodity and manufacturing price data matched with trade shares and separately identify export price, import price, and global economic activity shocks using sign and narrative restrictions. Taken together, export and import price shocks account for around 40 percent of output fluctuations but export price shocks are, on average, twice as important as import price shocks for domestic business cycles.

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