scholarly journals Can Foreign Aid Dampen the Threat of Terrorism to International Trade? Evidence from 78 Developing Countries

2018 ◽  
Vol 18 (1) ◽  
pp. 32-55 ◽  
Author(s):  
Simplice Asongu ◽  
Ivo J. Leke
Keyword(s):  
Developing Countries ◽  
International Trade ◽  
Development Assistance ◽  
Transnational Terrorism ◽  
Policy Tool ◽  
Risky Investment ◽  
Trade Distribution ◽  
Negative Effect ◽  
Effective Policy

The study investigates whether development assistance can be used to crowd-out the negative effect of terrorism on international trade. The empirical evidence is based on a panel of 78 developing countries for the period 1984–2008 and quantile regressions. The following main findings are established. First, bilateral aid significantly reduces the negative effect of transnational terrorism on trade in the top quantiles of trade distribution. Second, multilateral aid also significantly mitigates the negative effect of terrorism dynamics on trade in the top quantiles of trade distributions. It follows that it is primarily in countries with above-median levels of international trade that development assistance can be used as an effective policy tool for dampening the adverse effects of terrorism on trade. Practical implications are discussed. Moreover, steps or strategies that can be adopted by managers of corporations involved in international trade are provided, inter alia: (a) the improvement in physical security in high risky places, (b) the reduction of uncertainty linked with politically risky investment environments, (c) the reduction of costs associated with investments in locations that are very likely to be impacted by terrorism, (d) the role of security consultants and (e) the enhancement of security in networks. JEL: F40, F23, F35, Q34, O40

scholarly journals Natural Disasters and Economic Growth: The Mitigating Role of Microfinance Institutions

2021 ◽  
Vol 13 (9) ◽  
pp. 5055
Author(s):  
John Sseruyange ◽  
Jeroen Klomp
Keyword(s):  
Developing Countries ◽  
Natural Disasters ◽  
Legal Status ◽  
Agricultural Sector ◽  
Banking System ◽  
Fe Model ◽  
Microfinance Institutions ◽  
Natural Event ◽  
Negative Effect

In this study, we explore whether microfinance institutions (MFIs) can mitigate the adverse macroeconomic consequences of natural disasters. The provision of capital immediately following a natural event is recognized as one of the necessary conditions for a fast economic recovery. However, one concern is that a large majority of natural disasters occur in developing countries where households and the private sector have only limited access to the formal banking system. As an alternative, MFIs may fill up this gap in providing liquidity in the form of microcredit. The existing evidence on how MFIs respond to disaster effects is foremost based on case and micro-level evidence. In turn, the focus of this study is more on the macro impact of MFI activities after a natural disaster. Based on the finding obtained from an OLS-FE model using an unbalanced panel considering more than 80 developing countries and emerging economies, we can conclude that natural disasters harm macroeconomic performance primarily through their effect on the agricultural sector. However, access to lending facilities from MFIs mitigates a large part of this negative effect. Moreover, the extent to which MFIs are able to mitigate these effects depends to a great extent on their nature, i.e., their organizational structure, profitability, legal status, age, and the number of clients they serve.

scholarly journals Labor Standards: Where Do They Belong on the International Trade Agenda?

2001 ◽  
Vol 15 (3) ◽  
pp. 89-112 ◽  
Author(s):  
Drusilla K Brown
Keyword(s):  
Developing Countries ◽  
International Trade ◽  
Labor Standards ◽  
Labor Regulation ◽  
National Sovereignty ◽  
The Past ◽  
Trade Sanctions ◽  
Technical Advice ◽  
Intense Debate

During the past decade, universal labor standards have become the focus of intense debate. Advocates argue from humanitarian concerns and the interests of industrialized-country labor, seeking enforcement with WTO sanctions. Opponents regard labor regulation as a matter of national sovereignty, challenge the effectiveness of trade sanctions, and prefer the ILO emphasis on dialogue, monitoring and technical advice. This paper analyzes the labor standards debate, with specific attention to the analytical underpinnings of universal rules; evidence linking weak labor protections in developing countries to industrialized country wages; and the role of labor standards in WTO negotiations.

scholarly journals The role of international trade agreements in the economy of developing countries (the case of Nigeria)

2018 ◽  
pp. 5-22
Author(s):  
Henrietta Nagy ◽  
◽  
József Káposzta ◽  
György Neszmélyi ◽  
Omokheka Obozuwa ◽  
...  
Keyword(s):  
Developing Countries ◽  
International Trade ◽  
Trade Agreements ◽  
International Trade Agreements

scholarly journals The Effects of the Exchange Rate on Value-Added International Trade to Enhance Free Trade Sustainability in GVCs

2019 ◽  
Vol 11 (10) ◽  
pp. 2740 ◽  
Author(s):  
Myoung Shik Choi ◽  
Bongsuk Sung ◽  
Woo-Yong Song
Keyword(s):  
International Trade ◽  
Exchange Rate ◽  
Free Trade ◽  
Bilateral Trade ◽  
Value Added ◽  
Policy Implications ◽  
Negative Effect ◽  
The Exchange Rate ◽  
Positive Effect

This study investigates the role of value-added bilateral trade focused on global value chains to achieve sustainable economic development. Our findings address trade policy implications that help to mitigate the global imbalances and exchange rate conflicts. These policies are expected to provide a competitive advantage that can be crucial to the sustainability of free trade. We apply traditional trade models to the value-added framework to examine the effects on value-added trade. Empirically, we investigate the bilateral value-added trade for recent years. Our major findings are that currency devaluation has a positive effect on value-added exports but has a negative effect on gross exports because of the effect on intermediate goods trading dominating the effect on international trade, i.e., the effect on foreign content of intermediate imports dominating the effect on the domestic content of exports. The same effect applies to imports. Also, we confirm that foreign income has a positive effect on exports and value-added exports, and domestic income has a positive effect on imports and value-added imports. However, their effects on trade balance are not consistent. Our major findings imply that the analysis of value-added trade can best contribute to the sustainability of global free trade by considering trade policies as a result of reflecting the easing of the global imbalance and the exchange rate war.

Changing Planning Perspectives of Agricultural Development in Malaysia

1983 ◽  
Vol 17 (3) ◽  
pp. 413-435
Author(s):  
Martin Rudner
Keyword(s):  
Developing Countries ◽  
Private Sector ◽  
Agricultural Development ◽  
Development Planning ◽  
Development Effort ◽  
National Planning ◽  
Policy Interventions ◽  
Public Resources ◽  
Effective Policy

Malaysia's planning organization has become the institutional centrepiece of that country's development effort. Indeed, Malaysia ranks as one of the non-Communist developing countries where planning is most highly institutionalized. Malaysian planning evolved as an effective policy mechanism for directing the authoritative allocation of public resources towards declared developmental objectives. Despite this attachment to national planning, Malaysia remains a staunchly market-oriented, open, and predominantly private enterprise economy. Nevertheless, as the role of planning expanded, private sector activity became increasingly subject to policy interventions predicated upon the politically-determined goals of development planning.

scholarly journals Fuel exports, aid and terrorism

2017 ◽  
Vol 25 (3) ◽  
pp. 239-267 ◽  
Author(s):  
Simplice Asongu ◽  
Jacinta Nwachukwu
Keyword(s):  
Policy Instrument ◽  
Quantile Regressions ◽  
Negative Effects ◽  
Transnational Terrorism ◽  
Bilateral Aid ◽  
Content Type ◽  
Multilateral Aid ◽  
Negative Effect ◽  
External Flows

Purpose This study aims to use interactive quantile regressions to assess the conditional role of foreign aid in reducing the potentially negative effect of terrorism on fuel exports in 78 developing countries for the period of 1984-2008. Design/methodology/approach Bilateral and multilateral aid indicators have been used, whereas terrorism includes domestic, transnational, unclear and total terrorism dynamics. Interactive quantile regressions have been used. Findings First, with the exception of unclear terrorism, bilateral aid can be used to mitigate the potentially negative effects of terrorism on fuel exports in bottom quantiles of the fuel export distribution. Second, multilateral aid can be used to reduce the negative effect of transnational terrorism on fuel exports exclusively in the highest (90th) quantile of fuel exports. The corresponding modifying thresholds are within policy ranges disclosed in the summary statistics. Practical implications While the policy instrument of bilateral aid is most relevant in countries with below-median fuel exports, the policy instrument of multilateral aid is effective with respect to transnational terrorism in countries with the highest levels of fuel exports. Originality/value This study contributes to the literature on the role of external flows in reducing the negative externalities of terrorism on development outcomes.

Do Poverty Rates Matter for Trade Openness in Developing Countries?

2020 ◽  
Vol 11 (03) ◽  
pp. 2050005
Author(s):  
Sèna Kimm Gnangnon
Keyword(s):  
Developing Countries ◽  
International Trade ◽  
Trade Openness ◽  
Policy Reforms ◽  
Poverty Level ◽  
Poor Countries ◽  
Advanced Economies ◽  
Negative Effect ◽  
Development Levels ◽  
Poverty Levels

A voluminous literature has been devoted to the effect of countries’ participation in international trade (for example through trade policy reforms and greater trade openness) on their poverty level, but not on the issue the other way around. The current analysis contributes to filling this gap in the literature by examining the effect of poverty on trade openness in a set of 99 developing countries over the period 1980–2014. Results suggest that while over the full sample poverty exerts a negative effect on trade openness, this effect ultimately depends on countries’ development levels, proxied by their real per capita income level. A rise in poverty levels reduces trade openness in relatively poor countries, but increases it in relatively advanced economies. These findings suggest that enhancing the ability of poor countries to participate in international trade would help promote greater trade openness, which could in turn help reduce poverty. The international community has a key role to play in that respect.

Returns to Educational Attainment in Urban Ghana: The Role of Job-to-Job Transition

2021 ◽  
pp. 146499342110034
Author(s):  
Christian S. Otchia
Keyword(s):  
Developing Countries ◽  
Educational Attainment ◽  
Vocational Education ◽  
Job Transition ◽  
Job Transitions ◽  
Final Destination ◽  
Self Employment ◽  
Negative Effect

It is well established that additional educational attainment above lower secondary yields higher returns. We find that these returns are mediated by the job transitions, especially for individuals with vocational education. We then study whether the job-to-job transition explains the differences in the returns to educational attainment and find evidence of positive returns of the movement from employee to self-employed. We show that successful employee voluntary move to self-employment to maximize their earnings, while early spell of self-employment tends to have a lasting negative effect on earnings. Our analysis partially explains why self-employment is the top final destination for many workers in developing countries.

scholarly journals Traditional And Non-Traditional Determinants Of Foreign Direct Investment In Developing Countries

2011 ◽  
Vol 20 (1) ◽  
Author(s):  
Simran K. Kahai
Keyword(s):  
Developing Countries ◽  
Foreign Direct Investment ◽  
International Trade ◽  
Host Country ◽  
Empirical Model ◽  
Direct Investment ◽  
Economic Freedom ◽  
Institutional Factors ◽  
Qualitative Factors

This paper extends previous studies on the determinants of Foreign Direct Investment (FDI) by looking at both traditional and non-traditional factors that influence the amount of FDI flowing to developing countries. Emphasis is placed on the role of non-traditional qualitative factors. Data from 1998 and 2000 for fifty-five developing countries are employed to estimate an empirical model of FDI. Results indicate that FDI is significantly affected by several qualitative factors such as the level of economic freedom, level of corruption, and the level of international trade regulations adopted in the host country. These findings support the need for increased considera- tion of cultural and institutional factors in attempting to better estimate and understand the devel- opment process.

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