Does tourism activity reduce the size of the informal economy? Capturing long-term heterogeneous linkages around the world

2021 ◽  
pp. 135481662110498
Author(s):  
Aldo Salinas ◽  
Cristian Ortiz ◽  
Pablo Ponce ◽  
Javier Changoluisa

This paper investigates the long-term and causal relationship between tourism activity and the informal economy in 76 countries from 1995 to 2015. We explore this relationship at the global level and by country group, using panel, co-integration techniques that indicate the existence of a long-run co-integration relationship between tourism and informal economy for the whole sample and at the level of country groups. Additionally, the paper analyzes the long-run coefficients of the model by using fully modified ordinary least square regressions (FMOLS). The results from FMOLS evidence a negative and significant impact of tourism on the informal economy at the global level and in high, upper-middle, and lower-middle income countries, but a positive link in low-income countries. However, the results reveal a heterogeneous long-run relationship within country groups. Also, the result of the Dumitrescu-Hurlin Granger causality test indicates bidirectional causality in the global sample, but the direction of causality varies by country group. The main policy implication derived from our findings suggests that in order to reduce the size of informal economy, policy-makers should foster tourism activities. JEL Classification : J01, L83, C23, O57, C00, C01

2019 ◽  
Vol 20 (4) ◽  
pp. e70-e106
Author(s):  
Santiago Acosta-Ormaechea ◽  
Sergio Sola ◽  
Jiae Yoo

Abstract We investigate how changes in the composition of tax revenue affect long-run growth in a broad cross-section of countries. To do this, we construct a new dataset that covers 70 countries (23 high-, 23 middle- and 24 low-income countries), with at least 20 years of observations during the period 1970-2009. In the context of revenue-neutral reallocations, we find that increasing consumption and property taxes while reducing income taxes boosts long-term growth. Among income taxes, we find that social security contributions and personal income taxes tend to have a stronger negative association with growth relative to corporate income taxes. Results, however, depend on countries’ development levels, suggesting nonlinearities in the relation between taxes and growth even after controlling for convergence effects. Although results are robust for high- and middle-income countries, these are generally not significant for low-income countries.


2021 ◽  
Vol 11 (1) ◽  
Author(s):  
Marcelo Muñoz ◽  
Maxime Comtois-Bona ◽  
David Cortes ◽  
Cagla Eren Cimenci ◽  
Qiujiang Du ◽  
...  

AbstractThe severe acute respiratory syndrome coronavirus 2 (SARS-CoV-2) responsible for the COVID-19 global pandemic has infected over 25 million people worldwide and resulted in the death of millions. The COVID-19 pandemic has also resulted in a shortage of personal protective equipment (PPE) in many regions around the world, particularly in middle- and low-income countries. The shortages of PPE, such as N95 respirators, is something that will persist until an effective vaccine is made available. Thus, devices that while being easy to operate can also be rapidly deployed in health centers, and long-term residences without the need for major structural overhaul are instrumental to sustainably use N95 respirators. In this report, we present the design and validation of a decontamination device that combines UV-C & B irradiation with mild-temperature treatment. The device can decontaminate up to 20 masks in a cycle of < 30 min. The decontamination process did not damage or reduce the filtering capacity of the masks. Further, the efficacy of the device to eliminate microbes and viruses from the masks was also evaluated. The photothermal treatment of our device was capable of eradicating > 99.9999% of the bacteria and > 99.99% of the virus tested.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Atif Awad

Purpose This paper aims to investigate the long-run impact of selected foreign capital inflows, including aid, remittances, foreign direct investment (FDI), trade and debt, on the economic growth of 21 low-income countries in the Sub Saharan Africa (SSA) region, during the period 1990–2018. Design/methodology/approach To obtain this objective and for robust analysis, a parametric approach, which was dynamic ordinary least squares, and a non-parametric technique, which was fully modified ordinary least squares, were used. Findings The results of both models confirmed that, in the long run, trade and aid affected the growth rate of the per capita income in these countries in a positive way. However, external debt seemed to have an adverse influence on such growth. Originality/value First, this is the initial study that has addressed this matter across a homogenous group of countries in the SSA region. Second, while most of the previous studies regarding capital inflows into the SSA region have focused on the impact of only one or two aspects of such foreign capital inflows on growth, the present study, instead, examined the impact of five types of foreign capital inflows (aid, remittances, FDI, trade and debt).


Author(s):  
Ramesh Chandra Das ◽  
Arundhati Mukherjee

There have been debates among the so-called developed economies and less developed and emerging economies on the issue of ‘who is responsible for' the emission of excessive greenhouse gases (GHGs) into the ambient environment. While methane emissions from agriculture and livestock is one of the important elements of GHGs, it is also required for growth of the agriculture and allied activities for all economic categories. The present study, under this backdrop, examines long run and short run linkages between methane emissions and agriculture outputs for high and low to upper middle-income countries for the period 1981-2012. The results show that the series of methane emissions and agriculture output are cointegrated in the 15 member Organization for Economic Co-operation and Development (OECD) group, low income and middle income countries signifying the responsibilities of these income groups in methane emissions. The responsible countries in the OECD are USA, UK, Japan, Germany, and Italy. Further, in short run dynamics, the Granger Causality results show that methane emissions make a cause to agriculture output for 15OECD and low-income countries, and agricultural output is a cause to methane generation for middle and all low to upper middle income countries. China, India, and Brazil cannot be blamed for making excessive methane generation as both the series are not cointegrated for them.


2018 ◽  
Vol 09 (03) ◽  
pp. 1850010 ◽  
Author(s):  
Sudeshna Ghosh

This paper explores the causal association between globalization and carbon dioxide emanations in a panel set of 17 low- and low-middle-income countries and 12 upper-middle and high-income countries of Asia, respectively. The time series of observations run from 1974 to 2014. The Westerlund (2007) panel cointegration test reveals that there exists a long-run cointegrating relationship in both the panel set of observations between globalization and CO2 emissions. For the panel of upper-middle and high-income countries of Asia the long-run panel (heterogeneous elasticities) shows that globalization does not cause environmental damage, contrary to the observation based on lower- and lower-middle-income countries. The study is in conformity with the Environmental Kuznets Curve Hypothesis. The Granger causality between the variables is explored by utilizing the Dumitrescu and Hurlin (2012) Granger Causality tests. The empirical observation shows that globalization-led environmental causality is valid for lower- and lower-middle-income countries of Asia. So proper sustainable green and clean technology must be adopted for the low-income countries to stop the negation of the growth process in the near future.


Breast Care ◽  
2019 ◽  
Vol 14 (1) ◽  
pp. 5-8 ◽  
Author(s):  
Bernhard Wörmann ◽  
Marianne Sinn

First biosimilars of monoclonal antibodies have recently been approved in oncology. Biosimilars enable economic competition, alleviate the financial burden for insurances, and may facilitate access to these drugs in low-income countries. Biosimilars are not completely identical to the original drug. The approval of biosimilars is only partially based on results of randomized clinical studies. In the introduction phase of new biosimilars, this can lead to uncertainties for patients and physicians. Based on the current clinical data and experiences, biosimilars of monoclonal antibodies in oncology show no significant differences in pharmacokinetics, efficacy, and safety in comparison to the patented originals. Scientific medical societies recommend the use of biosimilar monoclonal antibodies and support switching in long-term treatments. However, the use of biosimilars for off-label indications requires additional attention towards efficacy and safety. Active counselling of the patient by the treating physician is the most important step in the informed consent process, especially when switching from an original to a biosimilar. Careful documentation of the prescribed drug and enhanced pharmacovigilance are recommended for the use of biosimilars.


Author(s):  
Syed Abdul Hamid

Health microinsurance (HMI) has been used around the globe since the early 1990s for financial risk protection against health shocks in poverty-stricken rural populations in low-income countries. However, there is much debate in the literature on its impact on financial risk protection. There is also no clear answer to the critical policy question about whether HMI is a viable route to provide healthcare to the people of the informal economy, especially in the rural areas. Findings show that HMI schemes are concentrated widely in the low-income countries, especially in South Asia (about 43%) and East Africa (about 25.4%). India accounts for 30% of HMI schemes. Bangladesh and Kenya also possess a good number of schemes. There is some evidence that HMI increases access to healthcare or utilization of healthcare. One set of the literature shows that HMI provides financial protection against the costs of illness to its enrollees by reducing out-of-pocket payments and/or catastrophic spending. On the contrary, a large body of literature with strong methodological rigor shows that HMI fails to provide financial protection against health shocks to its clients. Some of the studies in the latter group rather find that HMI contributes to the decline of financial risk protection. These findings seem to be logical as there is a high copayment and a lack of continuum of care in most cases. The findings also show that scale and dependence on subsidy are the major concerns. Low enrollment and low renewal are common concerns of the voluntary HMI schemes in South Asian countries. In addition, the declining trend of donor subsidies makes the HMI schemes supported by external donors more vulnerable. These challenges and constraints restrict the scale and profitability of HMI initiatives, especially those that are voluntary. Consequently, the existing organizations may cease HMI activities. Overall, although HMI can increase access to healthcare, it fails to provide financial risk protection against health shocks. The existing HMI practices in South Asia, especially in the HMIs owned by nongovernmental organizations and microfinance institutions, are not a viable route to provide healthcare to the rural population of the informal economy. However, HMI schemes may play some supportive role in implementation of a nationalized scheme, if there is one. There is also concern about the institutional viability of the HMI organizations (e.g., ownership and management efficiency). Future research may address this issue.


2020 ◽  
Vol 40 (9/10) ◽  
pp. 1183-1200
Author(s):  
Paul Agu Igwe ◽  
Chinedu Ochinanwata ◽  
Nonso Ochinanwata ◽  
Jonathan Olufemi Adeyeye ◽  
Isaac Monday Ikpor ◽  
...  

PurposeDuring the coronavirus (COVID-19) pandemic lockdowns, stay at home or work from home, many have argued that the westernised non-pharmaceutical interventions (NPI) do not provide remedial in low-income countries like Nigeria, where informal job seekers, street traders, informal labourers and artisans depend mainly on the informal economy. By applying social solidarity (SS) and community-based approach (CBA), the authors evaluate individual acts (trust, altruism and reciprocity) during the lockdown and how these practices evolve from individual approaches to collective actions.Design/methodology/approachThis study reflects on pragmatism research paradigm that enables researchers to maintain both subjectivity in their reflections and objectivity in data collection and analysis. The authors adopt a qualitative method through purposeful and convenience sampling procedure. Data were analysed thematically to identify elements of SS, individual acts, collective or community actions and perceptions.FindingsThe findings reveal that COVID-19 had a disproportionate impact (lack of food and a fall in daily income) on workers, informal job seekers, informal businesses operators and the poor households. As such, the study developed a reflective model of solidarity exhibited by individual acts and collective acts (practices of resource pooling, information sharing, women empowerment, distribution of palliatives and donations) within trusted circles that helped people cope with the lockdown experiences.Practical implicationsSolidarity represents beliefs, practices of values and norms. The SS exhibited by people through NPI would have implications on planning and monitoring the effectiveness of public health programmes during a pandemic in the future.Social implicationsThe findings of citizens and community actions have implications related to the process of building communities – coming together – and solidarity that enhances social development with implications on community health policy agenda during disasters, emergencies and health pandemic.Originality/valueThis is one of the first studies to analyse the relationship between trust, altruism, reciprocity, SS and CBA during the COVID-19 pandemic. Also, it seems reasonable to clarify the concept of SS given the lack of clarity about the definitions from previous studies.


Policy Papers ◽  
2014 ◽  
Vol 2014 (38) ◽  
Author(s):  

Diversification and structural transformation play important roles in influencing the macroeconomic performance of low-income countries (LICs). Increases in income per capita at early stages of development are typically accompanied by a transformation in a country’s production and export structure. This can include diversification into new products and trading partners as well as increases in the quality of existing products.


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