The effects of corruption on growth, human development and natural resources sector: empirical evidence from a Bayesian panel VAR for Latin American and Nordic countries

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Dante A. Urbina ◽  
Gabriel Rodríguez
Keyword(s):  
Economic Growth ◽  
Natural Resources ◽  
Error Correction ◽  
Human Development ◽  
Latin American ◽  
Nordic Countries ◽  
Var Model ◽  
Panel Var ◽  
Content Type ◽  
Latin American Countries

PurposeThe purpose of this paper is to analyze the effects of corruption on economic growth, human development and natural resources in Latin American and Nordic countries.Design/methodology/approachUsing the hierarchical prior of Gelman et al. (2003), a Bayesian panel Vector AutoRegression (VAR) model is estimated. In addition, two alternative approaches are considered, namely, a panel error correction VAR model and an asymmetric panel VAR model.FindingsThe results reveal some relevant contrasts: (1) in Latin America there is support for the sand the wheels hypothesis in Bolivia and Chile, support for the grease the wheels hypothesis in Colombia and no significant impact of corruption on growth in Brazil and Peru, while in Nordic countries the response of growth to shocks in corruption is negative in all cases; (2) corruption negatively affects human development in all countries from both regions; (3) corruption tends to spur natural resources sector in Latin American countries, while it is detrimental for natural resources sector in Nordic countries.Research limitations/implicationsThe panel VAR approach uses recursive scheme identification. The authors have analyzed robustness using alternative ordering of the variables. The authors also have followed two alternatives suggested by the Referee: a panel error correction VAR model and a panel asymmetric VAR model. However, another more sophisticated identification scheme could be used. Also other variables could be introduced in the VAR model.Practical implicationsRegardless of the issue of the “grease” vs the “sand the wheels” debate, corruption should be reduced because it is anyway harmful for human development. The differences in the results for Latin American and Nordic countries show that the effects of corruption have to be assessed considering the different institutional and economic conditions of the countries analyzed.Social implicationsGovernments should seek to reduce corruption because, despite corruption can have mixed effects on economic growth in some contexts, it is anyway harmful for human development. Besides, the finding that in some Latin American countries more activity in the extractive industries is generated by means of corruption confirm the association between corruption and extractivism found by Gudynas (2017) and can explain why there are issues of environmental damage and social conflict linked to natural resources in those countries.Originality/valueThe present study contributes to the literature by presenting evidence on the effects of corruption on growth, human development and natural resources sector in Latin American and Nordic countries. It is the first study on economics of corruption which directly compares Latin American and Nordic countries. This is relevant because there are important differences between both regions since Latin American countries tend to suffer from widespread corruption, while the Nordic ones have a high level of transparency. It is also the first in using a Bayesian panel VAR approach in order to evaluate the effects of corruption.

Science and technology in the framework of the sustainable development goals

2017 ◽  
Vol 14 (1) ◽  
pp. 2-17 ◽  
Author(s):  
Mariana Imaz ◽  
Claudia Sheinbaum
Keyword(s):  
Economic Growth ◽  
Sustainable Development ◽  
Technology Transfer ◽  
Natural Resources ◽  
Human Development ◽  
Sustainable Development Goals ◽  
Science And Technology ◽  
Content Type ◽  
Development Goals

Purpose In September 2015, the UN member states approved an ambitious agenda toward the end of poverty, the pursuit of equity and the protection of the planet in the form of 17 Sustainable Development Goals (SDGs) and 169 targets. The purpose of this paper is to raise a concern about the context and framework that science, technology and innovation have in the finalized text for adoption that frames the SDGs especially regarding environmental degradation. The authors argue that emphasizing technology transfer in the agenda has the risk to do not recognize other technological alternatives such as eco-technologies, and endorse a limited vision of the role of science and innovation in the achievement of the SDGs. Science for sustainability has to go further than technology transfer, even questioning the limits of the current patterns of intensive use of natural resources and inequity in consumption. By discussing the historical backgrounds of this paradigm and elaborating on the role of science to achieve sustainability in a broader sense. It is in these terms that inter- and intra-discipline and the roles of researchers in sustainability transitions acquire relevance. Design/methodology/approach Although many theories regarding human development are in place and under discussion, the dominant view, reflected in the UN agreement, is that the progress of a country can be measured by the growth in the per capita gross domestic product. This variable determines if a society is able to reduce poverty and satisfy its basic needs for present and future generations (Article 3: United Nations (UN), 2015). Progress and economic growth in several aspects of human development has been substantial over the past 40 years. However, at the same time, the state of the environment continues to decline (UNEP, 2012). The obvious inquiry of these opposing trends is whether progress irremediably comes at the cost of environmental degradation. In 1972, the Club of Rome’s report entitled “Limits to growth” (Meadows et al. 1972) confronted the viability of perpetual economic growth. The report alerted of the impossibility of endless growth in population and production in a finite planet (Gómez-Baggethun and Naredo, 2015). The essay forecasted future crises of food and energy if the population and economic growth continued to grow at the same rate of the first half of the twentieth century. Nevertheless, the catastrophic projections were not met, mostly because of great advances in agriculture, water and energy technologies. Findings The SDGs constitute a relevant international recognition of the importance of the three edges of sustainable development. However, the pathways toward the achievement of the SDGs need to fully recognize that poverty, inequalities and global environmental problems are expressing a deeper crisis in the shape of economic growth, patterns of production and consumption and, in general, the logic of no limits in the exploitation of natural resources (Sheinbaum-Pardo, 2015). For this reason, the science of sustainability requires a deep understanding of the technological change and that technology is not the only approach toward sustainability. Research limitations/implications The paper reflects a conceptual discussion of the narrow vision of science and technology in the SDGs and their UN framework. The most important objective in the UN documents is technology transfer. This has the risk to do not recognize other technological alternatives such as eco-technologies, and endorse a limited vision of the role of science and innovation in the achievement of the SDGs. Practical implications An important discussion of the key points regarding SDGs is developed. Social implications “Transforming our world: The 2030 agenda for sustainable development (UN, 2015)” presents a narrow vision and a limiting role to the science of sustainability. Moreover, if these issues are not recognized, the achievement of the SDGs will continue to gain only marginal success. Originality/value It brings out a very important discussion of the role of science and technology in the ambitious UN agenda of the SDGs.

scholarly journals Does FDI promote Economic Growth and Development? Evidence from Latin America and Africa

2015 ◽  
Vol 44 (1) ◽  
pp. 34-52
Author(s):  
Mohammed Seid Hussen
Keyword(s):  
Economic Growth ◽  
Human Development ◽  
Latin American ◽  
Positive Impact ◽  
Absorption Capacity ◽  
Transport Infrastructure ◽  
Panel Regression ◽  
Economic Policies ◽  
The Impact ◽  
Latin American Countries

This paper is an attempt to analyse and empirically estimate the impact of FDI on economic growth and human development of Africa and Latin American countries for the period 1985–2011. To this end we develop two equations: growth and human development. Our findings, based on fixed effect panel regression, thus, suggest that FDI does not have a positive impact on economic growth but it has significant positive impact on human development. We conclude that for FDI to be a noteworthy provider to economic growth, it is important to increase absorption capacity by improving the level of democracy, increasing and improving transport infrastructure and following appropriate economic policies. Our results are found to be robust across approach, model specifications and statistical test.

Growth, Inequality and Poverty in Selected Caribbean and Latin American Countries, with Emphasis on Guyana

1998 ◽  
Vol 30 (3) ◽  
pp. 591-617 ◽  
Author(s):  
JOHN GAFAR
Keyword(s):  
Economic Growth ◽  
Human Development ◽  
Latin American ◽  
Human Development Index ◽  
Direct Relationship ◽  
Poverty Line ◽  
Level Of Education ◽  
The Poor ◽  
Per Capita ◽  
Latin American Countries

The statistical evidence surveyed suggests that as an indicator of development the Human Development Index is directly related to the level of per capita income; that inequality is countercyclical; and that economic growth is poverty reducing. In the case of Guyana the data suggest that nearly 43 per cent of the population were below the poverty line (approximately US$1 per day per person); that poverty is predominantly rural; that most of the poor seek employment in agriculture or in the informal (self employed) sector; and that there is a direct relationship between the level of education, health and poverty.

Competitiveness, economic growth and human development in Latin American and Caribbean countries 2006-2015

2019 ◽  
Vol 29 (2) ◽  
pp. 139-159 ◽  
Author(s):  
Giovanni E. Reyes ◽  
Alejandro J. Useche
Keyword(s):  
Economic Growth ◽  
Developing Countries ◽  
Latin America ◽  
Human Development ◽  
Latin American ◽  
Well Being ◽  
Content Type ◽  
Real Gdp ◽  
Latin America And Caribbean ◽  
Latin American And Caribbean

Purpose The purpose of this paper is to analyze the performance and the relationship between competitiveness, real gross domestic product (GDP) growth and human development in 20 countries of the Latin America and Caribbean region during the 2006-2015 period. The main argument to uphold here is that – from the perspective of virtuous circle – countries with better conditions of competitiveness are those with better economic performance and with better conditions for human development. Design/methodology/approach Time series data were organized at three levels: individual countries, groups of nations and Latin America and Caribbean as a whole. Indicators used were: index of competitiveness, rates of change in real GDP and Human Development Index. Cluster analysis tests were performed: data ranges were determined and quintiles were established. Countries were ranked in five categories and comparative position matrices were determined for each variable. Linear correlations between indexes were calculated. Linear correlation coefficients were determined in terms of groups of countries and considering Latin America and Caribbean as a whole. Findings Findings revealed that decreasing conditions in competitiveness and economic growth indicators are the representative situation since 2009. The most competitive country in the region is Chile, and the weakest is Venezuela. Nevertheless, all Latin American and Caribbean countries analyzed seem to have made progress in terms of human, economic and social development. Regarding correlations, Dominican Republic showed an inverse relationship between competitiveness and economic growth, while Jamaica and Venezuela showed inverse relationships between competitiveness and human development. At the individual country level, no statistically significant relationship between economic growth and human development was detected. Research limitations/implications Findings highlight the necessity of future research that result in a deeper understanding of the transmission mechanisms between economic and social performance in Latin American and Caribbean countries. Particular reasons at the micro level that explain improvements or deteriorations in competitiveness and human development must also be analyzed. Based on the degrees of freedom, time series could have included more years, but a lack of information was found for some countries. It would also be necessary to observe each particular case considering the type of economy, production characteristics and export/import composition. Practical implications Results complement the existing literature by exploring competitiveness and its relationship with economic and social variables in developing countries. The authors also believe that this paper is relevant for macroeconomic and social policy debates involving competitiveness and human well-being in this region of the world. Originality/value This paper supports an important argument: human well-being and national development must be the ultimate goal of competitiveness. Traditional literature focuses on levels and determinants of competitiveness in developed countries, but it usually does not take into account social and human aspects of the process in developing countries. Little attention has been paid to analyze the relationship between competitiveness and socioeconomic variables in developing countries. Methods and findings of this paper complement the existing literature by studying the relationships among competitiveness, real GDP growth and human development in Latin American and Caribbean countries, using correlation analysis.

scholarly journals Value and quality creation: natural resources, industrialization and standards of living in peru 1950 to 1997

1999 ◽  
pp. 69-123
Author(s):  
Santiago Roca ◽  
◽  
Luis Simabuko ◽  
Keyword(s):  
Economic Growth ◽  
Economic Policy ◽  
Natural Resources ◽  
Latin American ◽  
Washington Consensus ◽  
Competitive Advantages ◽  
Industrial Policies ◽  
Standards Of Living ◽  
Latin American Countries

Peru”s recent economic policy, like that of most Latin American countries! has followed the paradigm of the socalled “Washington Consensus”. Such paradigm precludes the implementation of “strategic” industrial policies as well as the active and deliberate construction of competitive advantages through measures that foster certain sectors or activities. “Washington-Consensus” thinkers hold that the “magic of the market” and its indiscriminate opening will allow countries to acquire the necessary long-term external competitiveness, promote economic growth and enhance standards of living, regardless of the country”s productive specialization.

scholarly journals How is the dynamic impact of Undervaluation on Economic Growth in Latin American Countries?: A Panel VAR analysis

2020 ◽  
Author(s):  
CESAR CHAVEZ
Keyword(s):  
Economic Growth ◽  
Exchange Rate ◽  
Real Exchange Rate ◽  
Latin American ◽  
Panel Var ◽  
Causality Test ◽  
Vector Autoregressive ◽  
The Real ◽  
Per Capita ◽  
Latin American Countries

Abstract In this research, I analyze the dynamic effects of undervaluation on the economic growth per captai of Latin American countries with a period 1980-2018. To estimate these effects, I use a Panel Vector Autoregressive (PVAR) whose estimator is System GMM. The undervaluation variable is created from different measures of the real exchange rate and I also use various measures of GDP per capita to calculate economic growth per capita. I include as control variables macroeconomic and human capital variables to control the different channels of spread of undervaluation on economic growth per capita. The results show that there is a positive effect depending on the definition of the real exchange rate used to calculate the undervaluation. In the results I include the Granger causality test, stability test and impulse response graphs in which I project the response of per capita economic growth to an undervaluation shock.

scholarly journals Human development, inequality and social risks in Latin-America and the Nordic countries

2019 ◽  
Vol 14 (1) ◽  
pp. 9-36
Author(s):  
Morten Tønnessen
Keyword(s):  
Latin America ◽  
Human Development ◽  
Latin American ◽  
Living Conditions ◽  
Nordic Countries ◽  
Social Risks ◽  
America Latina ◽  
Latin American Countries ◽  
Welfare Model ◽  
Economic Risks

English:This article provides an overview and analysis of human development, inequality and people´s perception of social and economic risks in Latin America and the Nordic countries. While Nordic countries rank very highly on the UN´s Human Development Index (HDI) and are known for their ‘Nordic welfare model’, Latin American countries have been making significant progress economically, and with regard to health and education. However, inequality levels remain high throughout Latin America, representing an obstacle to further human development in the region. This is evidenced in the UN´s inequality-adjusted HDI data, among other sources. High levels of inequality translate to a poorer-than-average social welfare for significant portions of the populations in Latin American countries. To a large extent, actual living conditions are reflected in what people perceive as social risks when looking ahead and thinking about their own prospects, as well as those of their families. Improved and more equal living conditions are therefore likely to change people´s life satisfaction, in addition to what they are the most concerned about. In this article, people´s perception of social risks in selected Latin American and Nordic countries is analysed based on data from the OECD´s Cross-National Survey on Social and Economic Risks. Spanish:Desarrollo humano, desigualdad y riesgos sociales en América Latina y los países nórdicos.Este artículo propone una panorámica y análisis del desarrollo humano, la desigualdad y la percepción del riesgo social y económico de las personas en países nórdicos y latinoamericanos. Mientras que los países nórdicos se ubican en posiciones altas en el ranking de las Naciones Unidas para el Indicador de Desarrollo Humano (IDH), y son bien conocidos por su “Modelo de bienestar nórdico”, los países latinoamericanos han venido teniendo significativos avances en la esfera económica, y con respecto a la salud y la educación. Sin embargo, los niveles de desigualdad se mantienen elevados en la región latinoamericana, representando un obstáculo para avanzar en el desarrollo humano. Esto se evidencia en la base de datos de las Naciones Unidas sobre el IDH ajustado por la desigualdad, entre otras fuentes. Altos niveles de desigualdad se traducen en un bienestar social por debajo de la media para porciones significativas de la población de los países latinoamericanos. En un sentido más amplio, las condiciones de vida reales se reflejan en lo que las personas perciben como riesgos sociales, al analizar sus propias posibilidades de bienestar, y las de sus familias. Condiciones de vida mejoradas y más equitativas potencialmente modifican la satisfacción de las personas respecto a su existencia, añadidas a aquellas cuestiones que más les preocupan. En este artículo se analiza la percepción del riesgo social que desarrollan las personas en países seleccionados de América Latina y en países nórdicos. El análisis se funda en  las bases de datos de la Organización para la Cooperación y el Desarrollo Económicos (OCDE) construidas a partir de las Encuestas Internacionales sobre Riesgos Sociales y Económicos.

Evolution of financial inclusion in Latin America

2020 ◽  
Vol 33 (2) ◽  
pp. 261-276
Author(s):  
Lisana B. Martinez ◽  
Valeria Scherger ◽  
M. Belén Guercio ◽  
Sofía Orazi
Keyword(s):  
Latin American ◽  
Credit Cards ◽  
Financial Inclusion ◽  
Content Type ◽  
The World Bank ◽  
The Mean ◽  
Main Determinants ◽  
Binary Probit ◽  
Positive Evolution ◽  
Latin American Countries

PurposeThis paper analyses the evolution of the financial inclusion and its main determinants in seven Latin American countries.Design/methodology/approachThe database used is the Global Findex from the World Bank for the latest data released that includes the years 2011 and 2014. The variables used are formal financial accounts, formal savings and formal credit as proxies of financial inclusion for the years of study. Moreover, the use of debit and credit cards is considered. The methodologies applied are the mean difference tests, in order to contrast the hypotheses of the inclusion evolution and binary probit regressions models.FindingsThe results of the analysis show that there is a positive evolution in the use of financial instruments in the countries of the sample, especially in the use of formal accounts. On the other hand, considering the characteristics of the individuals, age, level of education and income positively affect their financial inclusion.Originality/valueThere are no similar works for the region of study that allow us to evaluate the evolution of financial inclusion considering the variables selected in the literature. It is possible to clearly fulfil the proposed objective, highlighting the importance of implementing financial inclusion policies in view of the low percentage of use of the instruments in the analyzed countries.

Direct Foreign Investment and Economic Development in Latin America: Perspectives for the Future

1989 ◽  
Vol 21 (1-2) ◽  
pp. 221-239 ◽  
Author(s):  
Eva Paus
Keyword(s):  
Economic Growth ◽  
Latin American ◽  
Foreign Investment ◽  
Debt Crisis ◽  
Direct Foreign Investment ◽  
Bank Lending ◽  
Economic Growth And Development ◽  
International Bank ◽  
The Future ◽  
Latin American Countries

Since 1982, most Latin American countries have witnessed slow economic growth and a persistent net transfer of funds to the rest of the world as a result of sharply reduced inflows of private international bank lending and large debt payment obligations. Against this background direct foreign investment (DFI) has received increasing attention as one important element in overcoming the present stagnation-cum-debt crisis as well as in contributing to renewed economic growth. This article explores the possible contributions of DFI to the future economic growth and development of the region.1

Sign in / Sign up

Export Citation Format

Share Document