Trade openness and structural vulnerability in developing countries

2016 ◽  
Vol 43 (1) ◽  
pp. 70-89 ◽  
Author(s):  
Sena Kimm Gnangnon
Keyword(s):  
Developing Countries ◽  
Trade Policy ◽  
Fixed Effects ◽  
Trade Openness ◽  
Developed Countries ◽  
Structural Vulnerability ◽  
Least Developed Countries ◽  
Structural Determinants ◽  
Entire Sample ◽  
Content Type

Purpose – The purpose of this paper is to investigate how trade openness affects the structural vulnerability of developing countries. The analysis is conducted on both the entire sample of 105 countries as well as two sub-samples, namely least developed countries (LDCs) and non-LDCs. Design/methodology/approach – To perform the analysis, the author employs fixed-effects (within) regressions supplemented by instrumental variables technique based on the two-step generalized methods of moments approach. Findings – The author finds empirical evidence that although trade policy liberalization reduces the structural vulnerability on the entire sample developing countries, no statistically significant effect of such liberalization is obtained either on LDCs or non-LDCs. However, trade policy liberalization appears to reduce countries’ exposure to shocks, result that applies to the entire sample as well as the two sub-samples. The author also observes that trade policy liberalization exerts no (statistically) significant effect on the size of shocks that affect developing countries, result that applies to both the full sample and the sub-samples of LDCs and non-LDCs. Research limitations/implications – In the absence of a well-established theoretical framework on how trade openness affects the structural vulnerability of developing, the author adopts a pragmatic approach by drawing upon many insights of Loayza and Raddatz (2007) who study the structural determinants of external vulnerability. Practical implications – Developing countries in general and LDCs in particular could address their structural weaknesses by making optimal use of their trade policies. In particular, they could better use the flexibilities available to them in provisions of the World Trade Organization (WTO)’ Agreements. In this respect, the international community, notably donors of the developed world has a key role to play. Originality/value – This is the first study exploring how trade openness, capturing here through trade policy liberalization affects the structural vulnerability of developing countries.

Multilateral trade liberalization and developing countries’ economic exposure to shocks

2019 ◽  
Vol 46 (2) ◽  
pp. 496-515 ◽  
Author(s):  
Sena Kimm Gnangnon
Keyword(s):  
Developing Countries ◽  
Trade Liberalization ◽  
Fixed Effects ◽  
Developed Countries ◽  
Least Developed Countries ◽  
Data Set ◽  
Content Type ◽  
Multilateral Trade ◽  
Multilateral Trade Liberalization ◽  
The Impact

Purpose The purpose of this paper is to examine the impact of multilateral trade policy (MTP) liberalization on developing countries’ economic exposure to shocks. Design/methodology/approach The analysis is conducted on a panel data set comprising 120 countries over the period 1996–2013 and uses the within fixed effects estimator. Findings The empirical results suggest that over the entire sample as well as sub-samples of least developed countries (LDCs) and non-LDCs, multilateral trade liberalization have a negative and significant impact on economic exposure to shocks. Interestingly, LDCs appear to experience the highest magnitude of the reducing impact of multilateral trade liberalization on countries’ economic exposure to shocks. Research limitations/implications These findings suggest that a greater cooperation among countries in the world, including among WTO members to further liberalize trade would surely contribute to reducing developing countries’ economic exposure to shocks. Practical implications The current study shows that the current backlash against trade and the consequent strong appeal for domestic trade protectionist measures would likely to undermine the likelihood of further multilateral trade liberalization. One implication of this could be a rise in countries’ economic exposure to shocks. Originality/value To the best of the author’s knowledge, this is first the study on this matter.

The difference in the FDI – private investment relationship between developed and developing countries: does it stem from governance environment?

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Van Bon Nguyen
Keyword(s):  
Developing Countries ◽  
Design Methodology ◽  
Good Governance ◽  
Trade Openness ◽  
Private Investment ◽  
Developed Countries ◽  
Tax Revenue ◽  
Content Type ◽  
Governance Environment ◽  
The Difference

PurposeThe paper attempts to empirically examine the difference in the foreign direct investment (FDI) – private investment relationship between developed and developing countries over the period 2000–2013.Design/methodology/approachThe paper uses the two-step GMM Arellano-Bond estimators (both system and difference) for a group of 25 developed countries and a group of 72 developing ones. Then, the PMG estimator is employed to check the robustness of estimates.FindingsFirst, there is a clear difference in the FDI – private investment relationship between developed countries and developing ones. Second, governance environment, economic growth and trade openness stimulate private investment. Third, the effect of tax revenue on private investment in developed countries is completely opposite to that in developing ones.Originality/valueThe paper is the first to provide empirical evidence to confirm the dependence of FDI – private investment relationship on governance environment. In fact, contrary to the view (arguments) in Morrissey and Udomkerdmongkol (2012), the paper indicates that FDI crowds out private investment in developed countries (good governance environment), but crowds in developing countries (poor governance environment).

Who benefits from the high-price segment in commodity markets?

2017 ◽  
Vol 44 (12) ◽  
pp. 2313-2324
Author(s):  
Stefan Mann ◽  
Christian Ritzel
Keyword(s):  
Fixed Effects ◽  
Coconut Oil ◽  
Developed Countries ◽  
Commodity Markets ◽  
High Price ◽  
Least Developed Countries ◽  
Niche Markets ◽  
Content Type ◽  
Objective Hermeneutics ◽  
Qualitative Part

Purpose Vegetable oils are usually considered commodities. The purpose of this paper is to use disaggregated import data from Switzerland to show two phenomena. The first is that a growing high-price segment exists in these markets; the second is that least developed countries (LDC) are usually excluded from the benefits of this niche. Design/methodology/approach A detailed quantitative and qualitative analysis for coconut oil is carried out, using fixed effects regressions for the quantitative part and objective hermeneutics for the qualitative part. Findings The analysis indicates that prices depend on the quantity imported and on the country of origin and that entrepreneurs outside the LDC attempt to create new niche markets, whereas actors in the bulk markets tend to ignore these niches and to continue relying on LDC. Social implications Bulk markets may continue to exist, but the importance of niches is certainly increasing and should be extended to LDC. Originality/value It could be shown which market dynamics exist and which of them leave LDC behind.

Facebook fan page management for global airlines

2019 ◽  
Vol 74 (3) ◽  
pp. 532-546 ◽  
Author(s):  
Fakhri Baghirov ◽  
Ye Zhang ◽  
Noor Hazarina Hashim
Keyword(s):  
Developing Countries ◽  
Social Networking Sites ◽  
Technology Implementation ◽  
Diffusion Of Innovations ◽  
Poor Performance ◽  
Analysis Data ◽  
Developed Countries ◽  
Least Developed Countries ◽  
Content Type ◽  
Significant Difference

Purpose This study aims to investigate the adoption and performance of Facebook fan pages (FFPs) among global airline companies in developed, least developed and developing countries. Design/methodology/approach Diffusion of innovations theory has been applied as the underlying theory in this study. By using content analysis, data were collected from the official FFPs of global airlines. Findings Results show no significant difference in FFP adoption among global airline companies in developed, least developed and developing countries. However, there is a significant difference in performance and timing of adoption of FFP between the countries. Airlines from developed countries adopted FFP three years earlier than developing countries and performed better than airlines from developing and least developed countries. Research limitations/implications Because FFP is studied with limited variables, future studies can expand to other social networking sites and explore more variables to get reliable results. Practical implications Academically, this study adds to internet and technology implementation literature. Finding of poor performance on FFP implementation among airlines in developing and least developed countries could draw attention to increased engagement with fans and improve FFP performance in the future. To successfully use Facebook, airline companies should establish a two-way communication and respond to their fans. Originality/value This paper fulfils an identified need to study the difference in using FFPs among global airline companies in developed, least developed and developing countries.

scholarly journals Does structural economic vulnerability matter for public indebtedness in developing countries?

2014 ◽  
Vol 41 (5) ◽  
pp. 644-671 ◽  
Author(s):  
Sèna Kimm Gnangnon
Keyword(s):  
Developing Countries ◽  
Low Income ◽  
Public Debt ◽  
Fixed Effects ◽  
International Institutions ◽  
Added Value ◽  
Small Island ◽  
Structural Vulnerability ◽  
Content Type ◽  
Economic Vulnerability

Purpose – The purpose of this paper is to examine the effect of structural economic vulnerability of developing countries on their public indebtedness. Design/methodology/approach – The authors perform the analysis by the use of fixed effects technique where the standard errors are corrected by the Driscoll-Kraay (1998) method. The panel covers 96 developing countries over the period 1980-2008. Findings – The results suggest evidence of a “U-shaped” relationship between the structural vulnerability and the total public debt in developing countries. More particularly in low-income countries (LICs), the structural vulnerability appears to be a strong determinant of the build-up of the total public debt. Research limitations/implications – It would be interesting to extend the research to small Island developing states. Indeed, the authors do not include this group of countries because of lack of data, especially on the variable “quality of governance” for almost all countries of this group. Accordingly, the research should be extended to such countries as well as these data are available. Practical implications – The implications of the study is that international institutions, including those of the Bretton Woods should take into account the structural vulnerability of developing countries when designing development policies, especially the ones related to debt sustainability in developing countries and particularly LICs. Social implications – The fact of the international institutions to take into account the structural vulnerability in the design of international development policy, especially those related to debt issues will have major implications on the macroeconomic policy design by these developing countries as well as on poverty reduction. Originality/value – The added value of this paper is to use recent data on structural vulnerability to analyse the effect of the latter on public indebtdeness of developing countries.

The effects of population growth, environmental quality and trade openness on economic growth

2017 ◽  
Vol 44 (3) ◽  
pp. 456-474 ◽  
Author(s):  
Mohammad Mafizur Rahman ◽  
Kais Saidi ◽  
Mounir Ben Mbarek
Keyword(s):  
Economic Growth ◽  
Developing Countries ◽  
Population Growth ◽  
Environmental Quality ◽  
Trade Openness ◽  
Developed Countries ◽  
Causality Test ◽  
Policy Makers ◽  
Content Type ◽  
The People

Purpose The purpose of this paper is to explore the effects of population growth (PG), environmental quality and trade openness on economic growth of major developed and developing countries. Design/methodology/approach The authors have used the panel unit root and panel co-integration tests over the period 1960-2013. Granger causality test is used to find out the direction of causality between the variables. Findings There is a bi-directional relationship between economic growth and trade openness, and a unidirectional relation, running from trade openness to CO2 emissions in the three developed countries. PG has a positive effect on economic growth in three developing countries and there exists a bidirectional relationships between CO2 emissions and PG and a unidirectional relationship from PG to economic growth and from trade openness to economic growth. Furthermore, there is a unidirectional relationship from PG to economic growth and bidirectional relationships between trade openness and economic growth for the six selected countries. Originality/value This is the first comprehensive research that combined the selected three major developed and three major emerging countries of the world to explore the effects of three important variables on economic growth. The authors’ findings will help the policy makers as well as the people of these six countries. this study has shown the aggregate and disaggregate results, so a comparison between the groups of countries is possible. Therefore, this research has significant contributions.

scholarly journals Preferential tariffs and development of Norwegian rose import from Africa

2020 ◽  
Vol 10 (3) ◽  
pp. 341-361
Author(s):  
Hege Medin ◽  
Maren Elise Bachke
Keyword(s):  
Developing Countries ◽  
Low Income ◽  
Quantitative Data ◽  
Qualitative Data ◽  
Developed Countries ◽  
Least Developed Countries ◽  
African Countries ◽  
Developed Country ◽  
Content Type ◽  
Preferential Tariff

PurposeImports of cut roses increased after Norway implemented a preferential tariff scheme for the least developed countries in 2002. When the scheme was extended to more countries in 2008 – among them Kenya – imports exploded. This article studies the subsequent changes in supply channels, import costs and the way Norwegian firms imported.Design/methodology/approachQualitative data, obtained through interviews among five rose importers, are combined with quantitative data for all importing firms and transactions in Norway for the years 2003–2014. These data are analysed in light of recent economic theories on international trade.FindingsWhen Kenya was included in the scheme, imports from Europe and domestic production in Norway decreased substantially. Imports from some African countries with low income levels also declined. Importing under GSP involves high fixed import costs due to stringent procedures. Each firm's imports increased gradually, and over time learning may have facilitated importing. Direct trade with African producers and control over the logistics chain seem to have become more important.Research limitations/implicationsThe analysis builds mainly on data for Norwegian importers, not for African exporters.Practical implicationsSimplifying the GSP procedures could increase Norwegian imports from developing countries and induce establishment of new trade relationships, perhaps also for other products than roses.Originality/valueUsing a mixture of original qualitative data as well as unique, detailed and comprehensive quantitative data, the article provides new insights into how preferential tariff reductions for developing countries’ exports to a developed country affect trade and buyer–supplier relationships.

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.

Board demographic diversity, firm performance and strategic change

2014 ◽  
Vol 37 (12) ◽  
pp. 1110-1136 ◽  
Author(s):  
Daniel Kipkirong Tarus ◽  
Federico Aime
Keyword(s):  
Firm Performance ◽  
Fixed Effects ◽  
Strategic Change ◽  
Secondary Data ◽  
Developed Countries ◽  
Outcome Variable ◽  
Demographic Diversity ◽  
Content Type ◽  
Fixed Effects Regression ◽  
High Level

Purpose – The purpose of this study is to examine the effect of boards’ demographic diversity on firms’ strategic change and the interaction effect of firm performance. Design/methodology/approach – This paper used secondary data derived from publicly listed firms in Kenya during 2002-2010 and analyzed the data using fixed effects regression model to test the effect of board demographic and strategic change, while moderated regression analysis was used to test the moderating effect of firm performance. Findings – The results partially supported board demographic diversity–strategic change hypothesis. In particular, results indicate that age diversity produces less strategic change, while functional diversity is associated with greater levels of strategic change. The moderated regression results do not support our general logic that high firm performance enhances board demographic diversity–strategic change relationship. In effect, the results reveal that at high level of firm performance, board demographic diversity produces less strategic change. Originality/value – Despite few studies that have examined board demographic diversity and firm performance, this paper introduces strategic change as an outcome variable. This paper also explores the moderating role of firm performance in board demographic diversity–strategic change relationship, and finally, the study uses Kenyan dataset which in itself is unique because most governance and strategy research uses data from developed countries.

A systematic literature review of lean manufacturing implementation in manufacturing-based sectors of the developing and developed countries

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Catherine Maware ◽  
Modestus Okechukwu Okwu ◽  
Olufemi Adetunji
Keyword(s):  
Developing Countries ◽  
Literature Review ◽  
Lean Manufacturing ◽  
Negative Impact ◽  
Developed Countries ◽  
Manufacturing Industries ◽  
Preliminary Review ◽  
Content Type ◽  
Manufacturing Organizations ◽  
Developing And Developed Countries

Purpose This study aims to comparatively discuss the effect of lean manufacturing (LM) implementation in the manufacturing sectors of developing and developed countries. Design/methodology/approach An in-depth literature review focused on previous research published between 2015 and March 2020. The papers published by the databases such as Google Scholar, Scopus, ProQuest and Web of Science were used in the study. A total of 63 studies that focused on LM application in manufacturing industries in developing and developed countries were used in the research. Findings It was observed that LM improves operational performance for manufacturing organizations in developing and developed countries. Small and medium-sized enterprises in both developed and developing countries have difficulties transforming their organizations into lean organizations compared to large enterprises. Furthermore, the review also found that there seems to have been no paper had reported the negative impact of implementing LM in manufacturing industries in developing and developed countries from 2015 to March 2020. Research limitations/implications The study used research papers written between January 2015 and March 2020 and only considered manufacturing organizations from developed and developing nations. Practical implications The study provides more insight into LM implementation in developing and developed countries. It gives the LM practices and the implications of applying these practices in manufacturing organizations for developing and developed countries. Originality/value A preliminary review of papers indicated that this seems to be the first paper that comparatively studies how LM implementation has affected manufacturing organizations in developed and developing countries. The study also assessed the LM practices commonly used by the manufacturing industries in developing and developed countries.

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