BUSINESS REGULATION AND ECONOMIC GROWTH: THE INDIRECT EFFECT OF CORRUPTION IN LATIN AMERICA AND THE CARIBBEAN

2018 ◽  
Vol 23 (01) ◽  
pp. 1850003 ◽  
Author(s):  
YAKIRA FERNÁNDEZ-TORRES ◽  
MILAGROS GUTIÉRREZ-FERNÁNDEZ ◽  
JULIÁN RAMAJO-HERNÁNDEZ
Keyword(s):  
Economic Growth ◽  
Latin America ◽  
Private Sector ◽  
Indirect Effect ◽  
Gdp Per Capita ◽  
Business Regulation ◽  
The Caribbean ◽  
Per Capita ◽  
Control Of Corruption ◽  
Starting A Business

This paper explores how corruption indirectly affects economic growth through business regulation in Latin America and the Caribbean, a relationship that has scarcely been addressed in the literature. Although regulation of the private sector explains GDP per capita, the effect is conditioned by the level of corruption. When the control of corruption is greater, there is an increase in the extent to which bureaucracy when starting a business and trading across borders negatively affects GDP per capita in Latin America and the Caribbean. This finding corroborates the “greasing the wheels” hypothesis.

scholarly journals Does Good Governance Matter? Kazakhstan’s Economic Growth and Worldwide Governance Indicators

2020 ◽  
Vol 10 (1) ◽  
pp. 1-13
Author(s):  
Aikozha Absadykov
Keyword(s):  
Economic Growth ◽  
Economic Performance ◽  
Good Governance ◽  
Political Stability ◽  
Gdp Per Capita ◽  
Governance Indicators ◽  
Regulatory Quality ◽  
Per Capita ◽  
The Relationship ◽  
Control Of Corruption

Good governance is generally believed to improve country’s economic performance. This paper studies the relationship between the World Bank’s Worldwide Governance Indicators (Voice and Accountability, Political Stability and Absence of Violence, Government Effectiveness, Regulatory Quality, Rule of Law, Control of Corruption) and economic growth in terms of GDP per capita in Kazakhstan. The findings of the research indicate that there is a significant positive relationship between good governance and economic performance of Kazakhstan. Specifically, results show that the Control of Corruption has the strongest impact on GDP per capita. 

scholarly journals Empirical evidence of sustainable development: Causality relationship between economic growth and environmental degradation in Ecuador and Latin America and The Caribbean

2021 ◽  
Vol 25 (111) ◽  
pp. 67-77
Author(s):  
Victor Quinde Rosales ◽  
Rina Bucaram Leverone ◽  
Martha Bucaram Leverone ◽  
Francisco Quinde Rosales
Keyword(s):  
Economic Growth ◽  
Latin America ◽  
Development Economics ◽  
Environmental Kuznets Curve ◽  
Ecological Economics ◽  
Kuznets Curve ◽  
The Caribbean ◽  
Per Capita ◽  
Environment And Development ◽  
Environmental Kuznets Curves

This article is an inductive argumentation and an empirical-analytical paradigm that evaluates the actual relationship between Gross Domestic Product (GDP) per capita and the Carbon Dioxide (CO2) in the case of Ecuador and to compare it with Latin America and the Caribbean within a period of analysis from 1960 to 2011. It was developed an Augmented Dickey-Fuller unit root (ADF), a Granger Causality Test and a Johansen Cointegration test. It was obtained a VAR model with two variables with a number of 14 lags – VAR2(14) which were tested for which were tested for causality by demonstrating a bidirectionality for Latin America and the Caribbean and a unidirectionality of GDP per capita to CO2 for the Ecuador. Keywords: economic growth, sustainable development, environmental economics. References [1]E. Urteaga, «Las teorías económicas del desarrollo sostenible,» Cuadernos de Economía, vol. 32, nº 89, pp.113-162, 2009. [2]G. Brundtland, «Our Common Future,» de Report of the World Commission on Environment and Development, 1987. [3]R. Bermejo, Del desarrollo sostenible según Brundtland a la sostenibilidad como biomimesis, Bilbao: Hegoa, 2014. [4]W. Beckerman, «Economists, scientists, and environmental catastrophe,» Oxford Economic Papers, vol. 24, nº 3, 1972. [5]G. Grossman and A. Krueger, «Economic Growth and the Environment,» The Quarterly Journal of Economics, vol. 110, nº 2, pp. 353-377, 1995. [6]J. y. A. Medina, «Ingreso y desigualdad: la Hipótesis de Kuznets en el caso boliviano,» Espacios, vol. 38, nº31, p. 23, 2017. [7]M. Ahluwalia, «Inequality, poverty and development, » Journal of Development Economics, nº 3, pp. 307-342, 1976. [8]A. y. R. D. Alesina, «Distributive politics and economic growth,» Quarterly Journal of Economics, vol. 109, nº 2, pp. 465-490, 1994. [9]R. Barro, «Inequality and growth in a panel of countries, » Journal of Economic Growth, vol. 5, nº 1, pp. 5-32, 2000. [10]M. A. Galindo, «Distribución de la renta y crecimiento económico,» de Anuario jurídico y económico escurialense, 2002, pp. 473-502. [11]A. Álvarez, «Distribución de la renta y crecimiento económico, Información Comercial Española, ICE,» Revista de economía, nº 835, pp. 95-100, 2007. [12]J. C. Núñez, «Crecimiento económico y distribución del ingreso: una perspectiva del Paraguay,» Población y Desarrollo, nº 43, pp. 54-61, 2016. [13]S. Kuznets, «Economic Growth and Income Inequality, » American Economic Review, nº 45, pp. 1-28, 1955. [14]J. A. y. C. J. Araujo, «Relación entre la desigualdad de la renta y el crecimiento económico en Brasil: 1995-2012.,» Problemas del desarrollo, vol. 46, nº 180, pp.129-150, 2015. [15]F. Correa, A. Vasco and C. Pérez, «La Curva Medioambiental de Kuznets: Evidencia Empírica para Colombia Grupo de Economía Ambiental (GEA),» Semestre Económico, vol. 8, nº 15, pp. 13-30, 2005. [16]M. Heil and T. Selden, «Carbon emissions and economic development: future trajectories based on historical experience,» Environment and Development Economics, vol. 6, nº 1, pp. 63-83, 2001. [17]D. Holtz-Eakin and T. Selden, «Stoking the fires? CO2 emissions and economic growth,» Journal of Public Economics, pp. 85-101, 1995. [18]D. STERN, «Progress on the environmental Kuznets curve?,» Environment and Development Economics, vol. 3, nº 2, pp. 173-196, 1998. [19]P. Ekins, «The Kuznets curve for the environment and economic growth: examining the evidence,» Environment and Planning, vol. 29, pp. 805-830, 1997. [20]W. Moomaw and G. Unruh, «Are Environmental Kuznets Curves Misleading us?,» de Fletcher School of Law & Diplomacy, 1997. [21]S. M. Bruyn, J. Van- Den- Bergh and J. Opschoor, «Economic growth and emissions: reconsidering the empirical basis of environmental Kuznets curves,» Ecological Economics, pp. 161-175, 1998. [22]B. Friedl and M. Getzner, «Determinants of CO2 Emissions in a small open Economy,» Ecological Economics, vol. 45, nº 1, pp. 133-148, 2003. [23]T. Sheldon, «Carbon emissions and economic growth: A replication and extension,» Energy Economics, vol. 82, pp. 85-88, 2007. [24]B. Huang, M. Hwang and C. Yang, «Causal relationship between energy consumption and GDP growth revisited: A dynamic panel data approach,» Ecological Economics, vol. 67, nº 1, pp. 41-54, 2008. [25]J. He and P. Richard, «Environmental Kuznets curve for CO2 in Canada,» Ecological Economics, vol. 69, nº5, pp. 1083-1093, 2010. [26]S. Dinda, «Environmental Kuznets Curve Hypothesis: A Survey,» Ecological Economics, vol. 49, nº 4, pp. 431-455, 2004. [27]J. M. B. and  T. T. Fosten, «Dynamic misspecification in the environmental Kuznets curve: Evidence from CO2 and SO2 emissions in the United Kingdom,» Ecological Economics, vol. 76, pp. 25-33, 2012. [28]K. Ahmed, M. Shahbaz, A. Qasing and W. Long, «The linkages between deforestation, energy and growth for environmental degradation in Pakistan,» Ecological Indicators, vol. 49, pp. 95-103, 2014. [29]J. Wooldridge, Introducción a la Econometría Un Enfoque Moderno. 4ª ed., Mexico D.F.: Cengage Learning, 2010.    

One Region, One Commitment: Towards Sustainable Recovery in Latin America and the Caribbean

2021 ◽  
Author(s):  
Jennifer Doherty-Bigara ◽  
Andrea García Salinas ◽  
Daniella Restrepo Duarte
Keyword(s):  
Climate Change ◽  
Economic Growth ◽  
Latin America ◽  
Civil Society ◽  
Private Sector ◽  
Climate Policies ◽  
The Caribbean ◽  
Sustainable Recovery

In preparation for the next UN Biodiversity Conference (COP15) and UNFCCC Climate Change Conference (COP26), the IDB Group organized “One Region, One Commitment”, a virtual summit to showcase the regions multiple achievements in the climate change and biodiversity agendas in Latin America and the Caribbean. A total of 22 sessions were held throughout 3 days, in which speakers discussed the advanced climate policies that are being promoted by several countries, underscored that the role of the private sector and civil society is indispensable and unpostponable, highlighted the unique opportunity we now have to reflect on the type of recovery we want for the region, and examined how to harmonize sustainability goals with economic growth from multiple fronts. This document provides a brief summary of the main takeaways from the summit. We hope it also serves as a guide to continue learning from the valuable knowledge and experience shared during this event.

scholarly journals Effect of financial deepening on economic growth: Does it encourage income group transition?

2021 ◽  
Vol 16 (4) ◽  
pp. 101-113
Author(s):  
Yuliia Shapoval ◽  
Oleksii Shpanel-Yukhta
Keyword(s):  
Economic Growth ◽  
Private Sector ◽  
Income Group ◽  
Gdp Per Capita ◽  
Financial Deepening ◽  
Credit Availability ◽  
Financial Depth ◽  
Domestic Credit ◽  
Per Capita ◽  
The Relationship

The rapid growth of financial deepening raises the problem of its effect, beneficial for economic development. This paper aims to demonstrate the relationship between economic growth (GDP per capita growth, GNI per capita) and financial depth (domestic credit to private sector and credit availability) in 142 countries, split into four income groups, over 2000–2020, using correlation analysis and data from the World Bank and the IMF. Besides, a comparative analysis of domestic credit to the private sector, economic freedom, Gini index, total government expenditure and national savings of countries that increased their income group status over 2011–2020 is presented. Financial deepening (increased credit availability and expansion of domestic credit to the private sector) encourages economic growth (via GNI per capita and GDP per capita growth). Although the presence of a nonlinear relationship between economic growth (GDP per capita growth) and financial depth (domestic credit to private sector and credit availability) over 1991–2020 is insufficient, there is a linear relationship between GNI per capita and credit availability, between credit availability and domestic credit to the private sector for the same sample of countries over 2000–2020. Meanwhile, there is a tendency towards a decrease in the correlation between GNI per capita and GDP per capita growth. Given the revealed linear correlation between domestic credit to the private sector and GNI per capita, financial deepening positively impacts income growth, and this dependence strengthens with increasing income levels. Target values of domestic credit to the private sector are proposed for the income group transition. AcknowledgmentThe paper was funded as a part of the “Relationship between financial depth and economic growth in Ukraine” research project (No. 0121U110766), conducted at the State Institution “Institute for Economics and Forecasting of the NAS of Ukraine”.

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