Does the political regime favor economic growth?

2018 ◽  
Vol 17 (3) ◽  
pp. 384-398
Author(s):  
Jorge Guadalupe-Lanas ◽  
Jorge Cruz-Cárdenas ◽  
Patricio Arévalo-Chávez ◽  
Andrés Palacio-Fierro
Keyword(s):  
Economic Growth ◽  
Latin American ◽  
Raw Materials ◽  
Political Regime ◽  
The Political ◽  
South American ◽  
Exogenous Shock ◽  
Content Type ◽  
Exogenous Shocks ◽  
Macroeconomic Fundamentals

Purpose This study aims to analyze the influence of political regime on economic growth. Design/methodology/approach The methodology was based on an inter-period comparison of the evolution of macroeconomic fundamentals in three different political regimes in Ecuador, a South American country. Findings The results showed that what determines the evolution of macroeconomic fundamentals is not the political regime that oversees it, but the size of a positive exogenous shock on the price of raw materials, which, by providing higher incomes, considerably increases the level of investment and net exports. However, the political regime does affect the distribution of income in sectors such as health and education. Originality/value As far as the authors know, this may be the first paper to explore the importance of a positive exogenous shock on a political regime for the case of primary-exporting Latin American economies, which are price takers subject to exogenous shocks.

Ecuador’s Lasso weathers early storm but clouds loom

2022 ◽  
Keyword(s):  
Economic Growth ◽  
Economic Activity ◽  
Direct Investment ◽  
Tax Reform ◽  
The Political ◽  
Tax Reforms ◽  
Content Type ◽  
Downward Pressure ◽  
New Challenges ◽  
International Investors

Significance He appears to have weathered this early political storm, achieving notable successes in areas such as tax reform. However, the political outlook remains uncertain, with a likely COVID-19 resurgence heralding new challenges in 2022. Impacts Containing the spread of the Omicron variant will be a priority for Lasso in the coming months. A pandemic resurgence would place downward pressure on economic growth and tax collection. Tax reforms will please international investors and support efforts to attract foreign direct investment to stimulate economic activity.

scholarly journals CRECIMIENTO ECONÓMICO Y DESIGUALDAD EN ASIA, EUROPA Y AMÉRICA LATINA, 1990-2019

2020 ◽  
Vol 80 (315) ◽  
pp. 59
Author(s):  
Verónica Cerezo García ◽  
Heri Oscar Landa Díaz
Keyword(s):  
Economic Growth ◽  
Latin America ◽  
Income Distribution ◽  
Trade Liberalization ◽  
Latin American ◽  
Free Market ◽  
Exogenous Shock ◽  
America Latina ◽  
The Relationship ◽  
Sample Set

<p>El objetivo de este trabajo es analizar el efecto de la liberalización comercial sobre la productividad, la distribución del ingreso y el crecimiento económico, además de examinar la capacidad de absorción que este proceso ha concedido a los países ante choques externos, como el Covid-19. Empíricamente, tomamos pie en la taxonomía de crecimiento y desigualdad de Fajnzylber (1990) y en un modelo panel para evaluar esta relación en Asia, América Latina y Europa durante el periodo 1990-2019. Los principales resultados muestran: 1) co-movimiento entre crecimiento y equidad en Asia, mientras que en América Latina hay rezagos significativos, y 2) la productividad y la competitividad no precio constituyen el factor dinamizante en Asia y Europa.</p><p align="center"><strong> </strong></p><p align="center">ECONOMIC GROWTH AND INEQUALITY IN ASIA, EUROPE, AND LATIN AMERICA, 1990-2019</p><p align="center"><strong>ABSTRACT</strong></p><p>The paper’s aim is to analyse the effect of trade liberalization on productivity, income distribution and economic growth. The ability of a free-market oriented economy to fence off an exogenous shock such as the Covid-19 pandemic is also dealt with. Following Fajnzylber’s (1990) taxonomy of growth and inequality, we assess the relationship between trade liberalisation, growth and income distribution for a sample set of Asian, Latin American, and European countries over the period 1990-2019. Our main empirical results show that there exist: 1) a co-movement between growth and equality in Asia, but significant lags in both respects prevail in Latin America; 2) productivity and non-price competitiveness are the dynamizing factors in both Asia and Europe</p>

Are independent directors’ political connections valuable?

2020 ◽  
Vol 11 (2) ◽  
pp. 299-315 ◽  
Author(s):  
Yanyu Chen ◽  
Wenzhe Zheng ◽  
Yimiao Huang
Keyword(s):  
Firm Value ◽  
Negative Impact ◽  
Listed Companies ◽  
Political Connections ◽  
Independent Directors ◽  
The Political ◽  
Political Connection ◽  
Exogenous Shock ◽  
Content Type ◽  
Negative Effect

Purpose The purpose of this paper is to use difference-in-difference method (DID) to study the influences of independent directors’ political connection on firm value. Design/methodology/approach File No. 18 by the Organization Department of the Communist Party of China Central Committee requires that the leading cadres in party and government offices are not allowed to act as independent directors; this restriction applies to retired officials as well. As a result, many listed companies lose the political connections of officers as independent directors. This paper takes it as an exogenous shock to evaluate the influence of the political connection of independent directors on firm value, effectively alleviating the endogeneity problem existing in previous studies. Findings The research finds the following: under the policy of compelled resignation, the loss of political connection of independent directors has a prominent negative impact on firm value; and compared to state-owned enterprises, the firm value of private enterprises receives a greater negative impact. However, the political advantage of state-owned enterprises is not obviously influenced. In the regions with worse external market environments, due to a greater reliance on resources brought about by political connection, the policy has a much greater influence on their listed companies. Research limitations/implications The study faces several limitations, each of which represents a potential research direction. First, our analysis is based on the policy effects on the firm’s current Tobin’s Q and finds a negative effect of losing political connections. However, the long-term effects are still unclear, as some studies find a negative effect of political connections. Second, the paper focuses on one channel in which political connections may affect firm value. Other channels, such as subsidies and loans from state-owned banks, which need more granular data, should be explored in the future. Practical implications The use of DID model can better objectively evaluate the implementation effects of ban policies and alleviate endogenous problems, which is also enlightening for further perfection of the system of independent directors in the A-share market. Social implications It enriches existing researches of the value of independent directors from the perspective of political connection, which is conducive to understanding the influence and channel on the firm value after the loss of political connection and the value of independent directors in the corporate governance in a more comprehensive and accurate manner. Originality/value This paper extends the relevant research on the value of the political connection of independent directors from the perspective of political connection and enlightens the evaluation of the effect of ban policies.

scholarly journals Fuel for Conspiracy: Suspected Imperialist Plots and the Chaco War

2019 ◽  
Vol 11 (1) ◽  
pp. 3-22
Author(s):  
Luis Roniger ◽  
Leonardo Senkman
Keyword(s):  
Latin American ◽  
The Political ◽  
South American ◽  
Political Decision ◽  
Economic Interests ◽  
National Pride ◽  
The World ◽  
Chaco Region ◽  
Political Decision Making

Conspiracy discourse interprets the world as the object of sinister machinations, rife with opaque plots and covert actors. With this frame, the war between Bolivia and Paraguay over the Northern Chaco region (1932–1935) emerges as a paradigmatic conflict that many in the Americas interpreted as resulting from the conspiracy manoeuvres of foreign oil interests to grab land supposedly rich in oil. At the heart of such interpretation, projected by those critical of the fratricidal war, were partial and extrapolated facts, which sidelined the weight of long-term disputes between these South American countries traumatised by previous international wars resulting in humiliating defeats and territorial losses, and thus prone to welcome warfare to bolster national pride and overcome the memory of past debacles. The article reconstructs the transnational diffusion of the conspiracy narrative that tilted political and intellectual imagination towards attributing the war to imperialist economic interests, downplaying the political agency of those involved. Analysis suggests that such transnational reception highlights a broader trend in the twentieth-century Latin American conspiracy discourse, stemming from the theorization of geopolitical marginality and the belief that political decision-making was shaped by the plots of hegemonic powers.

Russian dominance limits Eurasian bloc's prospects

2017 ◽  
Keyword(s):  
Economic Growth ◽  
Growth Rates ◽  
The Political ◽  
Trade Barriers ◽  
Member States ◽  
Content Type ◽  
Military Action ◽  
Russian Military

Significance Two years on from its founding in 2015, the EEU has not created the expected boom in trade among member states, and is hampered by internal disagreements and persistent trade barriers. A new customs agreement has yet to be signed by Belarus. Impacts Modest economic growth in Russia will dampen growth rates across the EEU. Tajikistan and Azerbaijan will weigh the political benefits of membership against the EEU’s unimpressive results. Further Russian military action against Ukraine or Georgia would weaken Kazakh and Belarusian support for the EEU.

Global steel market will still face oversupply

2016 ◽  
Keyword(s):  
Latin American ◽  
Large Scale ◽  
Raw Materials ◽  
Emerging Market ◽  
Content Type ◽  
The United Kingdom ◽  
Steel Output ◽  
Steel Consumption ◽  
Steel Market ◽  
The Cost

Subject Slow cuts to global steel overcapacity. Significance In 2015, global steel output fell 2.8% compared to 2014, reaching 1.62 billion tonnes. China's production dropped by 2.3% to 804 million tonnes. In 2015, European benchmark steel prices fell by 27%, from 480 dollars/tonne to 350 dollars/tonne, while Chinese prices suffered a 41% drop, from 440 to 260 dollars/tonne. Margins at many steel-making groups contracted, as steel prices fell faster than the cost of raw materials. Large-scale job losses intensified in Europe, with the United Kingdom and Spain enduring the most of the capacity cuts. Impacts Latin American production could suffer from Asian competition unless sector-specific safeguards are introduced. Renewed dollar appreciation could make dollar-denominated debt unsustainable for many emerging-market steel-makers. BRICS exporters will suffer tariffs imposed by the US Department of Commerce. India will remain the industry's best hope for growth, due to its urbanisation and still low per capita steel consumption.

Economic growth will boost Portugal’s government

2018 ◽  
Keyword(s):  
Economic Growth ◽  
Political System ◽  
Tourism Industry ◽  
Economic Recovery ◽  
The Political ◽  
Turn Of The Millennium ◽  
Government Bonds ◽  
Content Type ◽  
Mediterranean Countries ◽  
The Eu

Significance Portugal is set for the best five-year period of growth since the turn of the millennium, unemployment is falling and public finances are showing positive signs. The upswing is reflected in the remarkable stability of the political system. Impacts The economic recovery is likely to drive down yields on government bonds. Centeno’s appointment as Eurogroup president will raise Portugal’s standing in the EU. Security concerns in many Mediterranean countries are likely to boost Portugal’s tourism industry.

Urbanisation will rise as birth rate declines in Peru

2018 ◽  
Keyword(s):  
Economic Growth ◽  
Birth Control ◽  
Birth Rate ◽  
High Growth ◽  
The Political ◽  
Water Shortages ◽  
Content Type ◽  
Goods And Services ◽  
Population Concentration ◽  
Construction Activity

Subject Results of the 2017 census. Significance Peru’s population growth has slowed markedly over the last ten years according to the latest census, reflecting growing urbanisation, changes in social structure and lifestyles, and the increased availability of methods of birth control. Years of high growth rates appear to underscore the expansion of a substantial urban middle class, while Peru is also enjoying a decline in the ratio between workers and the dependent population. Impacts Increasingly urban populations will benefit companies providing goods and services, whether imported or not. Construction activity will hinge around economic growth and its geographical distribution. Population concentration will reduce the political weight of rural constituencies. Peru’s cities will remain highly vulnerable to water shortages.

China COVID-19 outbreak will weaken Xi

2020 ◽  
Keyword(s):  
Public Health ◽  
Economic Growth ◽  
Political Stability ◽  
The Political ◽  
Content Type ◽  
Security Services ◽  
State Security ◽  
Political Impact ◽  
Negative Effect ◽  
Intense Activity

Subject The political impact of the coronavirus outbreak in China. Significance The extreme measures the Communist Party has taken in response to the COVID-19 outbreak are partly designed to instill faith in its governing capacity among ordinary citizens, but inertia and slow decision-making at every level have revealed a gap between official rhetoric and reality. Impacts China will increasingly treat public health as a matter of state security; regulation and more involvement by senior officials will follow. The main risk to political stability is indirect, via the outbreak’s negative effect economic growth and employment. Despite signs of public outrage, protests are unlikely due to the risk of contamination and intense activity by the security services.

Behavior of land markets and restrictions on housing access in Buenos Aires between 2003 and 2013

2016 ◽  
Vol 9 (4) ◽  
pp. 538-553 ◽  
Author(s):  
Luis Baer ◽  
Mark Kauw
Keyword(s):  
Economic Growth ◽  
Real Estate ◽  
Latin American ◽  
Social Inclusion ◽  
Buenos Aires ◽  
Real Estate Development ◽  
Land Markets ◽  
Content Type ◽  
The Real Estate ◽  
The City

Purpose This paper aims to understand the paradoxal development in Buenos Aires, Argentina, where economic growth was not accompanied by improved housing access. The period between the years 2003 and 2013 was characterized by a sustained economic growth with social inclusion and a great expansion of both social and private housing supply in the cities of Argentina. However, this growth was not accompanied by an improvement in the overall access to land and housing. On the contrary, the habitation problems in terms of access to formal, environmentally safe and well-located land with decent facilities have worsened. The City of Buenos Aires is one of the places where this paradox is most manifested. Design/methodology/approach The functioning of the land markets and the real estate development in Buenos Aires will be analyzed in the period 2003-2013 in relation to the macroeconomic context, the monetary effort for the acquisition and rent of a formal dwelling and certain logics of urban development. Findings The rhythm of urban land valorization continuously surpassed that of other commodities and services. The expansion of residential production did not improve the access to formal housing. On the contrary, habitation issues have worsened and conflicts concerning access to land, housing and the city have rapidly increased since 2003. Originality/value In a Latin American context, this paper is the first to establish a conceptual relationship based on empirical data between land price dynamics and real estate development. The paper is also original in its identification of a change in valorization rhythm and pattern of real estate development in the past decade (2003-2013).

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