Does Import Substitution Industrialisation Strategy Hurt Growth?: New Evidence from Brazil and South Africa

2012 ◽  
Vol 11 (3) ◽  
pp. 288-314 ◽  
Author(s):  
Aregbeshola R. Adewale
Keyword(s):  
South Africa ◽  
Developing Economies ◽  
Import Substitution ◽  
Macroeconomic Policy ◽  
The United States ◽  
The European Union ◽  
Macroeconomic Policies ◽  
Development Indicators ◽  
The World ◽  
Neoliberal Ideology

Abstract More economies have sprung up through home-grown import substitution industrialisation (ISI) strategy in the developing world as compared to those that have plummeted by adopting the prescripts of the Washington Consensus. The recurring economic and financial crises, essentially the 2008/2009 experiences, present another perspective for macroeconomic policy embracement. For instance, major economies, especially those of the United States and the countries in the European Union, jettisoned their neoliberal ideology for protectionist measures in dealing with the 2008/2009 financial and economic turbulence. This lends credence to a rethink of macroeconomic policies for the less developed and developing economies. Using data generated from the World Development Indicators (WDI), an organ of the World Bank, in regression analyses, this article argues that the macroeconomic policy of import-substitution industrialisation contributed to the current economic developments in Brazil and South Africa. The article suggests that an import-substitution industrialisation policy is not only appropriate to galvanise industrialisation in less industrialised economies, but also augments a sustainable economic growth.

Import substitution: problems of understanding policy and its objectives

2021 ◽  
pp. 578-588
Author(s):  
Alexey Pavlovich Portanskiy
Keyword(s):  
Import Substitution ◽  
The United States ◽  
The European Union ◽  
Negative Effects ◽  
Consumer Market ◽  
Russian Economy ◽  
The World ◽  
History Of ◽  
Substitution Policy ◽  
Positive Results

The policy of import substitution intensified in Russia in the second half of 2014 against the background of sanctions by the United States, the European Union and some other countries, as well as the introduction of counter-sanctions in the country. However, over the past period, no strong positive results of this policy have been noted in agriculture, with the exception of a narrow group of goods. An obvious negative consequence was the increase in prices on the consumer market and the restriction of the choice of food products. The share of machinery and equipment in imports has not decreased and the share of these goods in Russian exports has not increased. The article briefly describes the history of the formation of the import substitution policy in the World, its positive and negative sides. Taking into account the historical experience of the use of import substitution in the world, the author tries to identify the reasons for the lack of results of this policy in Russia. One of these reasons, according to the author, is excessive politicization, as well as bureaucratization in the implementation of the import substitution policy to the detriment of the economic content of this policy, which is confirmed by the lack of necessary calculations and a period of time for the implementation of the import substitution policy. Based on personal experience, the author also points out the negative effects of the import substitution policy that are manifested outside the economy and business, in particular, in the fi eld of higher education, which is often manifested in the distorted initial view of many students about the essence and goals of the import substitution policy. The author comes to the conclusion that only when understanding import substitution as an economic policy one can expect that this policy will benefit the Russian economy.

Macroeconomic Policy Issues in Fragile States

2021 ◽  
pp. 1-38
Author(s):  
Ralph Chami ◽  
Mattia Coppo ◽  
Raphael Espinoza ◽  
Peter Montiel
Keyword(s):  
Developing Economies ◽  
Macroeconomic Policy ◽  
World Population ◽  
Poverty Trap ◽  
Fragile States ◽  
Macroeconomic Policies ◽  
Policy Issues ◽  
State Fragility ◽  
The World ◽  
Policy Engagement

Around half of the world population living in extreme poverty resides in fragile states. The objective of this book is to develop our understanding of how state fragility must be accounted for in the design of macroeconomic policy. This chapter introduces the volume by presenting the concept of state fragility and by explaining how the macroeconomies of fragile states differ from those of other developing economies. The chapter also proposes a framework to illustrate how the poverty trap and the fragility trap interact, leveraging on the existing literature as well as on the new contributions presented in this volume. Finally, the chapter extracts policy lessons from the other 19 chapters in the book, in three increasingly specific steps: (1) General principles for policy engagement, (2) Policies to escape fragility, and (3) Macroeconomic policies to manage fragile economies, in particular in the areas of fiscal policy, monetary policy, and financial development.

An Econometric Analysis on the Relationship between Globalisation and Inequality in South Africa

2020 ◽  
Vol 11 (1) ◽  
pp. 89-89
Author(s):  
Jacques de Jongh
Keyword(s):  
South Africa ◽  
Well Being ◽  
Causality Analysis ◽  
Global Integration ◽  
Development Indicators ◽  
Long Run ◽  
The World ◽  
Distribution Of Resources ◽  
Short Run ◽  
The Impact

Globalisation has had an unprecedented impact on the development and well-being of societies across the globe. Whilst the process has been lauded for bringing about greater trade specialisation and factor mobility many have also come to raise concerns on its impact in the distribution of resources. For South Africa in particular this has been somewhat of a contentious issue given the country's controversial past and idiosyncratic socio-economic structure. Since 1994 though, considerable progress towards its global integration has been made, however this has largely coincided with the establishment of, arguably, the highest levels of income inequality the world has ever seen. This all has raised several questions as to whether a more financially open and technologically integrated economy has induced greater within-country inequality (WCI). This study therefore has the objective to analyse the impact of the various dimensions of globalisation (economic, social and political) on inequality in South Africa. Secondary annual time series from 1990 to 2018 were used sourced from the World Bank Development indicators database, KOF Swiss Economic Institute and the World Inequality database. By using different measures of inequality (Palma ratios and distribution figures), the study employed two ARDL models to test the long-run relationships with the purpose to ensure the robustness of the results. Likewise, two error correction models (ECM) were used to analyse the short-run dynamics between the variables. As a means of identifying the casual effects between the variables, a Toda-Yamamoto granger causality analysis was utilised. Keywords: ARDL, Inequality, Economic Globalisation; Social Globalisation; South Africa

Foreign exchange earnings of the countries of the world from international trade in fruit and berry products

2021 ◽  
pp. 45-56
Author(s):  
Rafail R. Mukhametzyanov ◽  
◽  
Nikolay G. Platonovskiy ◽  
Akhmed M. Khezhev ◽  
Tatiyana V. Ostapchuk ◽  
...  
Keyword(s):  
International Trade ◽  
Foreign Exchange ◽  
Import Substitution ◽  
World Order ◽  
Climatic Conditions ◽  
The European Union ◽  
The World ◽  
Increasing Demand ◽  
Processed Products ◽  
The Stability

In the context of the modern global financial world order, an important element of the stability of the national monetary unit of the overwhelming majority of countries in the world, especially developing countries, is foreign exchange earnings. For some countries with favorable natural and climatic conditions, the production, processing and export of agricultural products plays a significant role in the overall structure of foreign exchange earnings in the country. The constantly increasing demand from consumers for fruits, berries, nuts and their processed products allows economic entities of national fruit and berry subcomplexes to increase the volume of growing and exporting these types of products. This study analyzes the change in the volume of exports and imports of fruit and berry products in value terms for the period 2010-2019. It is revealed that some states, being the largest exporters of fruits, berries, nuts and products of their processing, occupy significant positions in the import of these types of products from abroad. Based on the author’s calculations, the top 30 countries of the world have been compiled in terms of net foreign exchange earnings from international trade in this type of product. According to this indicator, the first line with a level of $ 7.506 billion was occupied by Spain, while it increased it by $ 1.675 billion over 10 years. As for Russia, despite the counter-sanctions against the countries of the European Union and some other countries of the world, as well as the ongoing policy of import substitution, including in domestic gardening, it continues to be one of the main importers of fruits, berries, nuts and their processing products in the world. Thus, our country supports both foreign producers and other commercial structures that carry out the processes of commodity circulation of fruit and berry products, and the receipt of foreign exchange earnings in these powers.

Germany's relations with the United States and China from a strategic triangle perspective

2021 ◽  
Author(s):  
Sebastian Biba
Keyword(s):  
United States ◽  
European Union ◽  
The United States ◽  
Great Power ◽  
The European Union ◽  
Bilateral Relations ◽  
Puzzle Piece ◽  
The Us ◽  
The World ◽  
Angela Merkel

Abstract As the Sino-American Great Power competition continues to intensify, newly-elected US President Joe Biden's administration now seeks to enlist the support of its allies and partners around the world. As Europe's largest economy and a, if not the, leading voice within the European Union, Germany represents an important puzzle-piece for Biden. But Germany, at least under outgoing chancellor Angela Merkel, has been reluctant to take sides. It is against this backdrop that this article looks into Germany's past and present trilateral relationships with the US and China through the theoretical lens of the so-called strategic triangle approach. Applying this approach, the article seeks to trace and explain German behaviour, as well as to elucidate the opportunities and pitfalls that have come with it. The article demonstrates that Germany's recently gained position as a ‘pivot’ (two positive bilateral relationships) between the US and Chinese ‘wings’ (positive bilateral relations with Germany and negative bilateral relations with each other) is desirable from the perspective of the strategic triangle. At the same time, being pivot is also challenging and hard to maintain. Alternative options, such as entering a US–German ‘marriage’ directed against China, are also problematic. The article therefore concludes that Germany has tough decisions to take going forward.

United States and Its Challenge to Multilateralism in the Global Economy

2018 ◽  
Vol 74 (4) ◽  
pp. 402-419
Author(s):  
Krishnakumar S.
Keyword(s):  
United States ◽  
Global Economy ◽  
World Economy ◽  
Foreign Exchange Market ◽  
Bilateral Trade ◽  
Developing Economies ◽  
The United States ◽  
The Us ◽  
The World ◽  
Merchandise Trade

With Donald Trump as President of United States, multilateralism in the world economy is facing an unprecedented challenge. The international economic institutions that have evolved since the fifties are increasingly under the risk of being undermined. With the growing assertion of the emerging and developing economies in the international fora, United States is increasingly sceptical of its ability to maneuvre such institutions to suit its own purpose. This is particularly true with respect to WTO, based on “one country one vote” system. The tariff rate hikes initiated by the leader country in the recent past pose a serious challenge to the multilateral trading system. The paper tries to undertake a critical overview of the US pre-occupation of targeting economies on the basis of the bilateral merchandise trade surpluses of countries, through the trade legislations like Omnibus Act and Trade Facilitation Act. These legislations not only ignore the growing share of the United States in the growing invisibles trade in the world economy, but also read too much into the bilateral trade surpluses of economies with United States and the intervention done by them in the foreign exchange market.

International Sugar Council

1951 ◽  
Vol 5 (2) ◽  
pp. 416-416
Keyword(s):  
United States ◽  
South Africa ◽  
The United States ◽  
World Market ◽  
Sugar Production ◽  
Special Committee ◽  
The United Kingdom ◽  
The World ◽  
One Year ◽  
Preliminary Draft

A meeting of the International Sugar Council was held in London, June 26 to July 20, 1950. The meeting was attended by delegates of Australia, Belgium, Brazil, Cuba, Czechoslovakia, Dominican Republic, France, Haiti, Indonesia, the Netherlands, Peru, Philippine Republic, Poland, Portugal, South Africa, the United Kingdom, Yugoslavia, and the United States. The purpose of the meeting was to discuss the world situation in sugar and the proposal for a new international sugar agreement. The council adopted a protocol which extended the international sugar agreement of 1937 one year from August 31, 1950. During 1950, the council created a special committee to 1) study the changing sugar situation as it related to the need or desirability for negotiating a new agreement, and 2) report to the council, as occasion might arise, on its findings and recommendations as to the possible basis of a new agreement. The special committee prepared a document which set forth certain proposals in the form of a preliminary draft agreement. The draft agreement included six fundamental bases: 1) the regulation of exports, 2) the stabilization of sugar prices on the world market, 3) a solution to the currency problem, 4) the limitation of sugar production by importing countries, 5) measures to increase consumption of sugar and 6) the treatment of non-signatory countries. The draft was then considered by the council at its meeting on July 20 at which time the council decided to submit it to member and observer governments for comments and to transmit such comments for consideration at a meeting of the special committee.

scholarly journals Cooperation and Coopetition as a Tools Which Could Improve Leading Startups all over the World

2017 ◽  
Vol 11 (2) ◽  
pp. 228
Author(s):  
Aneta Ejsmont
Keyword(s):  
United States ◽  
The United States ◽  
Good News ◽  
The European Union ◽  
The United Kingdom ◽  
The World ◽  
The Usa ◽  
Leading Position ◽  
Foreign Sale ◽  
The Moment

Building own business is a long-term and laborious process. A person who leads a startup tries to start with building own business by taking first steps toward financial independence. Analyzing conditions in Poland, on average every second startup sells its services abroad, admittedly it is good news, although half of them do not export at all. Half of the startups which export their services and goods generates more than 50% of their revenues outside Poland. Very interesting is the fact that 60% of exporters have conducted their foreign sale since the moment of establishing their business. On which markets do they sell their services? It turns out that the most popular are markets in the European Union (54%), including the United Kingdom 14% and Germany 9%. Only about 25% of Polish startups exports their products and services to the United States. Taking the United States into consideration, in 2008 the USA lost their leading position in the number of startups which are newly created and achieving success in business. Currently in terms of the number of new startups the USA is on a quite distant place after Denmark, Finland, Sweden, Hungary, New Zealand, Israel or Italy. In short, more companies were closed than created, so it was, as a matter of fact, like in Poland. Therefore, the condition to improve the development of startups both from Poland and other countries all the world is to increase cooperation and coopetition.

scholarly journals Intellectual Property Law and Extra-Contractual Liability

2021 ◽  
pp. 82-95
Author(s):  
Giancarlo Frosio
Keyword(s):  
Intellectual Property ◽  
Common Law ◽  
The United States ◽  
The European Union ◽  
Trademark Infringement ◽  
The World ◽  
Emerging Issues ◽  
Intermediary Liability ◽  
Intellectual Property Infringement ◽  
Platform Economy

This chapter discusses intellectual property (IP) and extra-contractual liability by highlighting general comparative analysis issues within civil and common law systems, with some consideration given also to major theoretical clusters that might influence the different legal regimes. The chapter focuses on emerging issues of extra-contractual liability for intellectual property infringement in the platform economy, with special emphasis on copyright and trademark infringement, seeking to co-ordinate miscellaneous approaches from the United States (US), the European Union (EU), and selected European countries’ experiences. In doing so, this chapter highlights research and methodological issues related to limited harmonization at a regional level in secondary and extra-contractual liability doctrines when applied to IP. Finally, this chapter describes the World Intermediary Liability Maps (WILMap) as an attempt to provide consistency within a fragmented research framework while also presenting other miscellaneous endeavours seeking the same goal.

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