The Economics of Distortions and the Problem of Measurability: Evidence from Nigeria

2012 ◽  
Vol 1 (1) ◽  
pp. 43
Author(s):  
Lionel Effiom ◽  
Ubi Peter Samuel ◽  
Emmanuel O Okon
Keyword(s):  
Theoretical Basis ◽  
World Economy ◽  
Perfect Competition ◽  
Incentive Systems ◽  
Long Run ◽  
The World

The Nigerian economy has been characterized by various forms of distortions, mostly structural, arising from dysfunctional institutions and incentive systems. Distortions and imperfections generally mean any deviation from the assumptions of perfect competition. The degree to which a market or industry can be described as competitive depends in part on the ease with which new businesses can enter and exit a particular market in the long run. This paper therefore is burdened with the objective of examining the extent of this digression. Through a descriptive methodology, it provides a theoretical basis through which these distortions can be measured, and its findings establishes evidences of distortions in the Nigerian economy across various sectors including the power/energy, financial and the banking sectors. Specific and wider implications on the Nigerian as well as the world economy have been highlighted, namely the exportation of these distortionary tendencies to the rest of Africa and the world via the oil nexus.

The Role of Technological Change in the Long-run Global Economy Forecasting

2013 ◽  
pp. 97-116 ◽  
Author(s):  
A. Apokin
Keyword(s):  
Technological Change ◽  
Data Quality ◽  
Long Range ◽  
Global Economy ◽  
World Economy ◽  
Qualitative Approaches ◽  
Long Run ◽  
The World ◽  
National Economies

The author compares several quantitative and qualitative approaches to forecasting to find appropriate methods to incorporate technological change in long-range forecasts of the world economy. A?number of long-run forecasts (with horizons over 10 years) for the world economy and national economies is reviewed to outline advantages and drawbacks for different ways to account for technological change. Various approaches based on their sensitivity to data quality and robustness to model misspecifications are compared and recommendations are offered on the choice of appropriate technique in long-run forecasts of the world economy in the presence of technological change.

FINANCIAL GLOBALIZATION OF THE WORLD ECONOMY

2017 ◽  
Author(s):  
Tamara Makukh ◽  
Keyword(s):  
World Economy ◽  
Financial Regulation ◽  
High Tech ◽  
Credit System ◽  
Early Effect ◽  
Economic Productivity ◽  
Total Debt ◽  
Long Run ◽  
The World ◽  
Debt Market

The article analyses the main trends in the world economy through the prism of the current global financial and credit system. Various forecasts for the development of the world economy were assessed and noted that they do not correspond to real trends and patterns. These forecasts cannot assess the conceptual principles of the structure of the financial and credit base of the economy. Such forecasting is carried out on the principles of the achieved indicators and the developed methods of estimation of disturbances in the financial markets. The specificity of the state of the debt market is indicated, which allows to develop the economy only by increasing the total debt obligations, which leads to a complete loss of profitability of debt securities. It is proved that no defaults and debt write-offs do not renew the economy; these instruments only restart the mechanism of holding the debt market. Such development is a direct consequence of liberal regulation and a departure from the full functions of money, which leads to a conceptual change in the paradigm of the financial system. The limitations of the dominant concept of the financial and credit system, which was based on the basic foundations of the Bretton Woods Conference, were revealed. Criteria for financial regulation of a market economy have been identified and substantiated, which have exhausted their effectiveness and do not guarantee an early effect, but are only immediate. It is noted that the global pandemic and financial infusions to overcome it are a tool for accumulating total debt in the long run. The primary measures for debt restructuring are indicated, namely the support of low-debt fundamental companies that will meet the objective basic needs of innovative companies. Factors of economic development are explained: growth of economic productivity, short-term and long-term credit cycles and political component. It is indicated that productivity determines the priority of society's development in the long run, and the element of its implementation is knowledge in the absence of political dictate, which will form a new financial and credit mechanism. High-tech knowledge is needed to ensure productivity development, so investing in education and knowledge without different dogmas can bring the world economy to a new level of efficiency.

The Study of Symbiosis Question of Clusters Enterprise Value Chain in the “Post Crisis Era” - A Perspective Based on Value Network and Grid

2013 ◽  
Vol 291-294 ◽  
pp. 2845-2848
Author(s):  
Hua Bai Bu ◽  
Shi Zhen Bu
Keyword(s):  
United States ◽  
Economic Crisis ◽  
Value Chain ◽  
Theoretical Basis ◽  
World Economy ◽  
The United States ◽  
Enterprise Value ◽  
Value Network ◽  
The World ◽  
Global Economic Crisis

Along with the constant evolution of the world economy, the global economic crisis which was following the United States sub-prime loans crisis has entered “post crisis era”. However, it is still not resolved that this crisis has highlighted the problem of abnormal inner structure of clusters enterprise value chain in our country, and some developmental obstacles coexist in the cluster enterprises. This article addresses the realities of the “post crisis era” with value network and Grid as the starting points and puts forward a symbiotic path of cluster enterprises value chain, and then provides a theoretical basis for the decision about the symbiosis.

scholarly journals Global Economic Meltdown: Greenspan�s Legacy

2009 ◽  
Vol 34 (3) ◽  
pp. 9-14 ◽  
Author(s):  
Samir K Barua ◽  
Mahendra R Gujarathi
Keyword(s):  
Risk Taking ◽  
World Economy ◽  
Fair Value ◽  
Fair Value Accounting ◽  
Cautionary Note ◽  
Monetary Expansion ◽  
The Great Depression ◽  
Long Run ◽  
The World ◽  
Insight Into

In the event of statedly the deepest global crisis ever since the Great Depression, with the world economy mired in a severe economic meltdown, Samir K Barua and Mahendra R Gujarathi identify the factors and the players that incubated and nurtured the meltdown. The policies of deregulation, monetary expansion, and fair value accounting are specifically addressed in a historical perspective. The authors offer an insight into how sequentially the lawmakers first created the potent environment for risk-taking through unrestrained deregulation, the Federal Reserve then set the stage for the crisis with a policy of unbridled monetary expansion, and the accounting standardsetter finally relaxed norms to provide support for hiding the losses incurred� thus together fuelling the crisis. Although several trillions of dollars have been pumped into the market to maintain the credit flow, it is yet uncertain as to how the crisis will impact in the long run, the authors conclude on a cautionary note.

scholarly journals GOVERNMENT ASSISTANCE FOR BUSINESS UNDER CONDITIONS OF THE CHALLENGES OF THE 21ST CENTURY

2021 ◽  
Author(s):  
Оleksandra Viter ◽  
Oksana Kylyn ◽  
Natalia Sveleba
Keyword(s):  
World Economy ◽  
Negative Impact ◽  
Tourism Industry ◽  
Budget Deficits ◽  
Current Crisis ◽  
Business Survival ◽  
Credit Lines ◽  
Long Run ◽  
Short Period ◽  
The World

The article analyzes the current state of the tourism business market. Crisis phenomena in tourism caused by COVID-19 are considered. It is noted that the outbreak of coronavirus has caused a significant blow to the world economy and as a result it affects key sectors of the economy. According to experts, the current crisis has a much greater sudden financial impact than on September 11 and the crisis of 2009 combined. It was found that according to UN WTO forecasts in 2020 the number of international tourists due to the coronavirus pandemic decreased by 20-30% compared to 2019. According to the updated IMF forecast, in 2020 world GDP will shrink by 4.9%, the world economy will lose $ 12.5 trillion. The United Nations World Tourism Organization (UNWTO) is calling for more funds to rehabilitate and support the tourism industry so that it can become a leader in economic recovery. The purpose of the measures implemented by governments during this difficult period can be divided into the following categories: to ensure a balance between the protection of tourists and the interests of tourism workers; provide conditions for business survival and targeted support and recovery of the tourism sector. Most countries focus on both approaches. Countries with more developed economies rely mainly on affordable credit lines which will restore the competitiveness of the national economy in a short period of time. Other countries are focusing on delaying tax and debt obligations, which could negatively affect the economy in the long run and lead to long-term budget deficits and general solvency problems. In order to stabilize the economic situation, governments adopt a range of both monetary and fiscal measures that can partially provide the conditions for business survival, as the tourism industry can become one of the drivers that helps the economy emerge from the crisis and can quickly create new jobs after crisis situations. Therefore, it is important that the measures taken by states to support the tourism business, the implementation of which will reduce the level of negative impact of the pandemic on the economy of the tourism industry.

scholarly journals Strategies and Determinants of Foreign Direct Investment (FDI) Attraction

2015 ◽  
Vol 1 (5) ◽  
pp. 81-89 ◽  
Author(s):  
Abdoulaye Oury Bah ◽  
Xie Kefan ◽  
Oji-Okoro Izuchukwu
Keyword(s):  
Foreign Direct Investment ◽  
Labor Markets ◽  
Theoretical Basis ◽  
Direct Investment ◽  
Management Strategy ◽  
World Economy ◽  
Low Cost ◽  
Decision Makers ◽  
Cheap Labor ◽  
The World

The globalization of the world economy has created enormous opportunities as well as promotion efforts to attract foreign direct investment (FDI). The goal of this study is to detect and analyze management strategy to attract foreign direct investment. We conduct a detailed literature review and identify different strategies for capital issues and benefits of FDI. There are several trends that drive FDI like availability of natural resources, cheap labor markets and low cost which must be considered in order to take appropriate measures to attract more investments. The main contribution of the study is that it builds a theoretical basis which is useful for managers, entrepreneurs and decision-makers to make rational decisions on the choice of location for investments.

Long-run growth scenarios for the world economy

2010 ◽  
Vol 32 (1) ◽  
pp. 64-80 ◽  
Author(s):  
Romain Duval ◽  
Christine de la Maisonneuve
Keyword(s):  
World Economy ◽  
Long Run ◽  
The World
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