De Facto Fiscal Space in Donor-countries and Their Aid Supply: To What Extent is Trade-related Aid Supply Affected?

2019 ◽  
Vol 8 (1) ◽  
pp. 1-25 ◽  
Author(s):  
Sena Kimm Gnangnon
Keyword(s):  
Trade Openness ◽  
Jel Classification ◽  
Development Aid ◽  
Fiscal Stimulus ◽  
Economic Wealth ◽  
Working Paper ◽  
Trade Sector ◽  
Fiscal Space ◽  
Official Development Aid ◽  
The Impact

This article investigates the impact of fiscal space in donor-countries on their official development aid (ODA) supply. It relies on the indicator of ‘De Facto Fiscal Space’ proposed by Aizenman and Jinjarak (The Fiscal Stimulus of 2009–10: Trade Openness, Fiscal Space and Exchange Rate Adjustment, NBER Working Paper 17427, 2011) and on a panel of 22 donor-countries over the period 1964–2015. The analysis considers four measures of ODA, including the total net aid transfers (NAT), ODA allocated to all sectors in the recipient-countries (ODAALLSECT), ODA allocated to the trade sector and ODA provided for the non-trade sector. The empirical results show that greater fiscal space in donor-countries influences positively donors’ NAT, their ODA allocated to all sectors as well as their ODA allocated to the non-trade sector in recipient-countries. At the same time, greater fiscal space in donor-countries does not influence ODA relating to the trade sector. Furthermore, the impact of fiscal space on ODA supply to the trade and non-trade sectors depends on donor-countries’ level of economic wealth. Jel Classification: E62, F35

Donors’ Trade and Their Supply of Development Aid Related to the Trade Sector: Does Donors’ Output Gap Matter?

2018 ◽  
Vol 09 (01n02) ◽  
pp. 1850002
Author(s):  
Sèna Kimm Gnangnon
Keyword(s):  
Trade Balance ◽  
Developed Countries ◽  
Development Aid ◽  
Output Gap ◽  
Goods And Services ◽  
Trade Sector ◽  
Official Development Aid ◽  
The Impact ◽  
The Empirical Analysis ◽  
Developing And Developed Countries

This paper complements the literature on the impact of donor-countries’ trade on their supply of Official Development Aid relating to the trade sector (ODATRADE). It investigates whether the impact of donor-countries’ trade balance (including overall trade balance in goods and services, trade balance in goods vis-à-vis developing and developed countries, and trade balance in services) on ODATRADE depends on the level of donor-countries’ output gap. Relying on a sample of 22 donor-countries over the period 1967–2015, the empirical analysis shows that donors’ output gap does matter for the impact of trade balance variables on ODATRADE.

Solidarity Economics, Entrepreneurship, and Social Wealth

2019 ◽  
pp. 23-46
Author(s):  
Jose Manuel Saiz-Alvarez
Keyword(s):  
Common Good ◽  
Development Aid ◽  
The European Union ◽  
European Development Fund ◽  
Economic Wealth ◽  
Common Framework ◽  
European Development ◽  
The Common ◽  
Official Development Aid ◽  
Social Wealth

This chapter deals with how the socioeconomics of solidarity inserted in the Industry 4.0 can bring about solidarity and the creation of social and economic wealth based on the guiding principles of subsidiarity, the search for the common good, and solidarity based on social justice. After having grounded these principles, the author develops different solidarity-based public policies, mainly focused on the European Union, by including principles, objectives, and stages of the European ODA (Official Development Aid), the European Development Fund, the Common Framework for Joint Multiannual Programming and Efficiency, and the European Consensus on Development “Our World, Our Dignity, Our Future.” Some ideas complement this analysis linked to the socioeconomics of solidarity that focuses on solidarity and justice to search for a more balanced business world defined by social welfare and economic wealth.

scholarly journals Trade and Manufacturing in Sub-Saharan Africa

2020 ◽  
Vol 9 (3) ◽  
pp. 67-75
Author(s):  
A. Désiré Adom ◽  
Keyword(s):  
Manufacturing Sector ◽  
Essential Feature ◽  
Trade Openness ◽  
Jel Classification ◽  
Sub Saharan Africa ◽  
Comparative Approach ◽  
Vector Auto Regression ◽  
Sub Saharan ◽  
The Impact ◽  
Auto Regression

Trade and manufacturing have gained momentum in economic debates across Africa as of late. In particular, this study attempts to shed light on the impact of trade openness on manufacturing in Sub-Saharan Africa (SSA). Using a dual comparative approach made of vector auto-regression (VAR) and general method of moments (GMM) applied to 36 countries, results indicate that trade openness impedes the development of manufacturing. The negative effect of trade openness, which remains very limited in scope notwithstanding, underscores an essential feature regarding the entire manufacturing sector in SSA. Indeed, the idiosyncrasies of this sector – namely, underdevelopment, nascent industries and lack of diversification, among others − severely undermine the resilience of countries in SSA as they face heightened international competition. Keywords: Trade openness, Manufacturing, Sub-Sahara Africa, Vector auto regression. JEL Classification: F14, F41, F60

scholarly journals THE IMPACT OF DIGITAL TECHNOLOGY UTILIZATION IN THE TRADE SECTOR ON ITS PRODUCTIVITY, LABOR AND ECONOMIC GROWTH

2020 ◽  
Vol 14 (2) ◽  
pp. 195-214
Author(s):  
Muhammad Rizal Taufikurahman ◽  
Ahmad Heri Firdaus
Keyword(s):  
Economic Growth ◽  
General Equilibrium ◽  
Rural Areas ◽  
Digital Technology ◽  
Computable General Equilibrium ◽  
Industrial Revolution ◽  
Jel Classification ◽  
Technology Utilization ◽  
Trade Sector ◽  
The Impact

Abstrak Kehadiran ekonomi digital sebagai bagian dari revolusi industri 4.0 yang telah membuka peluang baru dalam bidang perdagangan dan menjembatani kepentingan produsen, konsumen, dan pasar tanpa dibatasi ruang dan waktu. Tujuan penelitian ini adalah menganalisis dampak pemanfaatan teknologi digital pada sektor perdagangan terhadap produktivitasnya, penyerapan tenaga kerja dan pertumbuhan ekonomi. Metode analisis yang digunakan adalah metode analisis model Computable General Equilibrium (CGE) dinamik. Hasil analisis menunjukkan digitalisasi di sektor perdagangan meningkatkan jumlah outputnya sebagai produktivitas jangka pendek dan panjang. Adapun dampak terhadap penyerapan tenaga kerja di perkotaan dan pedesaan menurunkan jenis pekerjaan tertentu pada periode analisis terutama tenaga kerja terampil rendah. Selanjutnya dampak terhadap GDP riil meningkat pada periode analisis. Kebijakan yang direkomendasikan adalah perlu perbaikan akurasi dan validitas database produk-produk yang kompetitif, strategi antisipatif untuk tenaga kerja yang terdistrupsi, pelayanan perizinan akses semakin mudah, optimalisasi aplikasi teknologi digital dalam tata kelola perdagangan, dan perbaikan sarana prasarana informasi dan teknologi. Kata Kunci: Teknologi Digital, Produktivitas, Tenaga Kerja, Pertumbuhan Ekonomi   Abstract The presence of a digital economy as part of the industrial revolution 4.0 has opened up new opportunities in trade and bridged the interests of producers, consumers, and markets without being constrained by time and space. The study aims to analyze the impact of digital technology utilization on the trade sector on its productivity, labor, and economic growth. The analysis method used is the Dynamic Computable General Equilibrium (CGE) model. The analysis results show that digitalization in the trade sector increases output as productivity in the short and long term. The impact on labor in urban and rural areas reduces certain types of work in the analysis period, especially low skilled labor. Furthermore, during the analysis period, the impact on real GDP increases. The recommended policy is to improve the accuracy and validity of competitive products' database, anticipatory strategies for labor that have disrupted, easier access licensing services, optimization of digital technology applications in trade governance, and improvement of information and technology infrastructure. Keywords: Digital Technology, Productivity, Labor, Economic Growth JEL Classification: F12, F13, F15

scholarly journals The Impact of Official Development Aid on Maternal and Reproductive Health Outcomes: A Systematic Review

PLoS ONE ◽  
2013 ◽  
Vol 8 (2) ◽  
pp. e56271 ◽  
Author(s):  
Emma Michelle Taylor ◽  
Rachel Hayman ◽  
Fay Crawford ◽  
Patricia Jeffery ◽  
James Smith
Keyword(s):  
Systematic Review ◽  
Reproductive Health ◽  
Health Outcomes ◽  
Development Aid ◽  
Official Development Aid ◽  
The Impact

The Concurrent Effect of Financial Development and Trade Openness on Private Investment in India

2020 ◽  
Vol 9 (2) ◽  
pp. 190-220
Author(s):  
Micheal Kofi Boachie ◽  
Martin Ruzima ◽  
Mustapha Immurana
Keyword(s):  
Private Sector ◽  
Financial Development ◽  
Trade Openness ◽  
Private Investment ◽  
Jel Classification ◽  
Development Indicators ◽  
Positive Effects ◽  
Distributed Lag ◽  
Private Sector Investment ◽  
The Impact

This article examines the role of financial development and trade openness in promoting private investment in India. We use data (1960– 2013) from the World Development Indicators database. After checking the time series properties of the data, we employ auto-regressive distributed lag (ARDL) estimation technique to investigate the impact of the concurrent existence of financial development and trade openness on private investment and whether the effect of financial development is dependent on the level of openness. The results show that, independently, financial development and trade openness have significant positive effects on India’s private sector investment, in both the long run and the short run. However, the effect of the interaction between financial development and trade openness on private investment is significantly negative, suggesting that the effect of financial development on private investment depends on the level of openness. Therefore, we conclude that care should be taken in the design of policies that allow for the coexistence of financial development and trade openness if India aims at promoting private sector capital formation for job creation. JEL Classification: E22, E44, F10, F60

scholarly journals FISCAL SPACE FOR EMERGENCIES IN MUNICIPALITIES

2021 ◽  
Vol 5 (40) ◽  
pp. 356-364
Author(s):  
V. Pylypiv ◽  
V. Ventsel ◽  
N. Ventsel
Keyword(s):  
Health Care ◽  
Local Governments ◽  
Financial Stability ◽  
Social Protection ◽  
Local Level ◽  
National Level ◽  
Jel Classification ◽  
Negative Consequences ◽  
Fiscal Space ◽  
The Impact

Abstract. Emergencies that have become an integral part of the lives of different municipalities and the threat of their negative consequences requires an adequate response from local governments. The article outlines the main causes of such situations and substantiates the need to address them by joining efforts both at the national level and at the level of local self-government. The concept of fiscal space is considered by the authors as the presence of a certain budget reserve to achieve the desired goals without violating financial stability. In the context of emergencies, this is a fiscal space to fund certain goals, which can sometimes be actualized in a very short time (as happened with the situation in health care in  2020). The possibility of targeting the fiscal space in the field of health care, social protection, overcoming the effects of natural disasters, combating poverty, achieving the goals of sustainable development, etc. is noted. The article presents the results of a study of the impact of emergencies (eg, the COVID-19 pandemic) on the ability of local authorities to respond to their consequences. The authors analyzed budget expenditures to combat COVID-19 and assessed changes in the financial capacity of municipalities and funding priorities, including funding for pandemic control at the national and subnational levels, the impact of the COVID-19 pandemic on municipal finances in terms of compliance with the principles of the European Charter of Local Self-Government, the impact on funding priorities at the local level and municipality development strategies, the ability of local governments to respond to emergencies and highlighted some already tested effective practices. The article examines the methods of forming fiscal space, which were used to overcome the consequences of emergencies: reprioritization of expenditures, improving the efficiency of available resources, revenues to local budgets, which are additionally obtained due to understatement of initial revenue plans, reserve fund. Key words: fiscal space, emergencies, municipal finances, municipalities. JEL Classification r51 Formulas: 0; fig.: 1; tabl.: 1; bibl.: 15.

scholarly journals Trade Openness and Diversification of External Financial Flows for Development: An Empirical Analysis

2020 ◽  
Vol 9 (1) ◽  
pp. 22-57
Author(s):  
Sèna Kimm Gnangnon
Keyword(s):  
Developing Countries ◽  
International Trade ◽  
Empirical Analysis ◽  
Trade Openness ◽  
Generalized Method Of Moments ◽  
Developed Countries ◽  
Development Aid ◽  
Data Set ◽  
Financial Flows ◽  
The Impact

The implementation of sustainable development goals (SDGs) adopted in 2015 by the international community in the Agenda 2030 requires a substantial mobilization of financial resources. In the meantime, Goal 17 of this Agenda recognizes trade as an important means of the implementation of the SDGs. The current article investigates empirically the impact of openness to international trade on the diversification of external financial flows for development, which could help developing countries achieve the SDGs by 2030. To that end, three major external flows for development have been considered: development aid inflows, migrants’ remittances inflows and foreign direct investment (FDI) inflows. The analysis relies on a panel data set comprising 116 countries, over the period 1970–2017. The empirical analysis relies primarily on the two-step system generalized method of moments (GMM) approach and shows that greater trade openness exerts a positive and significant impact on the diversification of external financial flows for development, in particular, in the least developed countries (LDCs). As a result, greater openness to international trade could be an important tool for external capital flows diversification in developing countries. JEL Classification: F13, F14, F21, F24, F35, O20

Sign in / Sign up

Export Citation Format

Share Document