scholarly journals Amplified Decoupling in the Global Economy: The Case of Bilateral Investment Treaties

2020 ◽  
Vol 6 ◽  
pp. 237802312096934
Author(s):  
Nina Bandelj ◽  
Aaron Tester
Keyword(s):  
Developing Countries ◽  
Global Economy ◽  
Historical Analysis ◽  
Bilateral Investment Treaties ◽  
Economic Diplomacy ◽  
Investment Treaties ◽  
Communist Countries ◽  
The Impact ◽  
Over Time

Developing countries adopt global policies in their quest for economic development. Studies show that such policies are decoupled from their intended effects, or that over time, they become more effective. But what if the opposite happens and policies, which were initially efficacious, become increasingly decoupled with time? We recognize this phenomenon as amplified decoupling. Combining historical and quantitative analysis, we examine a case of bilateral investment treaties (BITs), established to protect and promote foreign direct investment (FDI). The influence of BITs on FDI is significant in the early periods but becomes weaker over time. Historical analysis reveals the unexpected role of (post)communist countries in using BITs for geopolitical purposes and highlight the impact of international organizations which broker treaty signing among pairs of developing countries engaged in economic diplomacy. We suggest that amplified decoupling can result because of institutional multivalence, whereby practical actors reframe and repurpose policies toward uses that were originally unintended.

Sicherung privater Investitionen – ein geeignetes Instrument der Entwicklungshilfe?

2008 ◽  
Vol 57 (3) ◽  
Author(s):  
Peter Egger ◽  
Andreas Freytag ◽  
Sebastian Voll ◽  
Philipp Harms
Keyword(s):  
Economic Growth ◽  
Developing Countries ◽  
Property Rights ◽  
Host Country ◽  
Emerging Market ◽  
Developed Countries ◽  
Bilateral Investment Treaties ◽  
Investment Treaties ◽  
The Impact

AbstractPeter Egger’s paper provides a synthesis of findings with regard to the impact of bilateral as well as multilateral means of protection of cross-border direct investments in less developed countries and, in turn, on their economic growth. In particular, he focuses on the role of bilateral investment treaties and multilateral agreements such as the GATS in this regard. Previous empirical work identifies a significant positive impact of bilateral investment treaties on FDI. It suggests a similar impact of the GATS on FDI. He argues that these agreements contribute significantly to economic growth in less developed economies and countries in transition by spurring technology transfers through multinational activity of the developed countries in other economiesAndreas Freytag and Sebastian Voll emphasize the important role of adequate institutions both for investment and development. The question is, whether investment guarantees as insurance for political risks in the recipient country support economic development or not. Actually, the German Federal Republic is the leading warrantor for FDI-insurances on the world, but the benefiting countries are not the LDC’s. Using these warranties as an instrument of development policy in the future is content of actual political discussion. They argue that, in case of economies with weak domestic institutions, investment guarantees could provide disincentives for politicians in the target country to establish rule of law and good governance. On the other hand, investment guarantees could foster development by providing additional access to FDI, especially in emerging market economies with sufficient and improving institutional qualityPhilipp Harms points out while foreign direct investment (FDI) flows to developing countries and emerging markets have increased substantially in recent years, many low-income countries are still shunned by multinational firms. One of the key causes for this observation is the poor quality of institutions and an often precarious political environment in these countries. Given the benefits of FDI for host country productivity and income levels, it could thus be argued that protecting the security of property rights is an effective way of enhancing growth and prosperity in poor countries. While he agrees with this point of view, he argues that “traditional” forms of development aid can substantially contribute to an improved investment climate in developing countries. This argument is based on the notion that insecure property rights reflect distributional conflicts in the host country population, and that appropriate development support can shift agents’ distributional interests in favor of foreign firms.

scholarly journals Is There Any Role of Technological Inputs? A District-wise Analysis of Output Differential in Crop Sector

2008 ◽  
Vol 47 (4II) ◽  
pp. 925-946 ◽  
Author(s):  
Abdul Jalil Khan
Keyword(s):  
Developing Countries ◽  
Economic Freedom ◽  
Growth Process ◽  
Agricultural Productivity ◽  
Inclusive Growth ◽  
Long Run ◽  
The World ◽  
The Impact ◽  
Over Time

The idea of inclusive growth has emerged over time that highlighted systematically excluded segments of society from enjoying the benefits of growth on the basis of religion, ethnicity or location. In Pakistan, districts-wise allocation and usage of technological inputs is the outcome of growth and the important contributing elements as well to enhance specifically crop sector output under the advancement in growth prospective. It is reported that crop sector output contributes around 40 percent of the total agricultural GDP,1 where 2/3rd belongs to Punjab.2 The introduction of advance technological inputs provides an opportunity to enhance production potentials of crop sector in different provinces and their respective districts because Pakistan is also facing the problem of low agricultural productivity in comparison to many developed and developing countries of the world.3 Secondly, the expansion of opportunities to enhance economic freedom in long run has been considered an important issue that needs to be addressed in inclusive growth process. Hence, understanding the interrelationship among different farm related inputs effecting crop sector would help to measure (i) the impact of increased total traditional and technological inputs; (ii) contributive aspects of both types of technological inputs; machine and bio-chemical; and (iii) districtwise differential especially considering their resource endowments and availability.

The Role of Oil and Gas in the Economic Development of the Global Economy

2018 ◽  
Author(s):  
Paul Stevens
Keyword(s):  
Economic Development ◽  
Global Economy ◽  
Oil And Gas ◽  
Primary Energy ◽  
Oil And Gas Producers ◽  
The Future ◽  
History Of ◽  
Factor Inputs ◽  
The Impact

This chapter is concerned with the role of oil and gas in the economic development of the global economy. It focuses on the context in which established and newer oil and gas producers in developing countries must frame their policies to optimize the benefits of such resources. It outlines a history of the issue over the last twenty-five years. It considers oil and gas as factor inputs, their role in global trade, the role of oil prices in the macroeconomy and the impact of the geopolitics of oil and gas. It then considers various conventional views of the future of oil and gas in the primary energy mix. Finally, it challenges the drivers behind these conventional views of the future with an emphasis on why they may prove to be different from what is expected and how this may change the context in which producers must frame their policy responses.

CONCEPTUAL PRINCIPLES OF ACHIEVING INTELLECTUAL LEADERSHIP

2021 ◽  
Vol 6 (2) ◽  
pp. 100-104
Author(s):  
Liudmyla Tsymbal
Keyword(s):  
Economic Development ◽  
Intellectual Capital ◽  
Global Economy ◽  
Physical Capital ◽  
Developed Countries ◽  
Educational Process ◽  
High Tech ◽  
The Impact ◽  
Intellectual Leadership

The article identifies the key conceptual foundations for the formation of intellectual leadership of economic entities, including countries as specific actors in the global economy. Thorough preconditions for increasing the level of economic development and the impact of education have been identified. It is determined that historical concepts and modern realities of economic activity only actualize the role of education and enlightenment in the economic development of the national economy and ensuring its competitiveness. The strategies of increasing the competitiveness of individual countries of the world are analyzed, their key priorities in the conditions of formation of the knowledge economy are determined. The evolution of views on the role of human and intellectual capital in increasing the welfare of countries, the impact on GDP and other macroeconomic indicators is described. The ratings of countries are analyzed, in particular by the level of investment in intellectual capital and the structure of their GDP, which confirms the dominance of science-intensive economic activities. In addition, it was determined that the leading countries are characterized by increasing the role of knowledge-intensive activities, increasing the share of intangible assets, redistribution of capital of leading international companies and increasing research spending, increasing investment in human and intellectual capital, increasing exports of high-tech products. Analytical assessment confirms the advanced development of science-intensive industries in countries with developed economies, which creates the need for training and retraining of specialists needed for such industries. In modern conditions, the educational process ceases to be predominantly the prerogative of young people, and becomes a lifelong process, which increases spending on education in developed countries, but without denying the significant asymmetries on this indicator. Research confirms the direct relationship between the quality of human and physical capital and economic development, which is typical of highly developed countries, one of the main reasons for the development lag of the poorest countries. In addition, the article substantiates the key factors of intellectual leadership and their impact on the development of economic development strategies.

Could CSR improve the financial performance of developing countries’ firms? Analyses of mediating effect of intangible resources

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mohamed Hamdoun ◽  
Mohamed Akli Achabou ◽  
Sihem Dekhili
Keyword(s):  
Developing Countries ◽  
Human Capital ◽  
Financial Performance ◽  
Competitive Advantage ◽  
Mediating Effect ◽  
Social Dimension ◽  
Content Type ◽  
Intangible Resources ◽  
The Impact

Purpose This paper aims to examine the link between corporate social responsibility (CSR) and financial performance in the context of developing countries. More specifically, the mediating role of a firm’s competitive advantage and intangible resources, namely, human capital and reputation are studied. Design/methodology/approach The study considered a sample of 100 Tunisian firms. The analysis makes use of the structural equation modelling method to explore the relationship between CSR and financial performance, by including mediator variables. Findings The results confirm that CSR has no significant direct effect on financial performance. In particular, they indicate that the social dimension of CSR has a negative impact on performance. However, CSR does have a positive impact on competitive advantage via the two intangible resources considered, human capital and company reputation. Research limitations/implications The research fills a gap that occurred in the previous literature. In effect, previous studies focussed only on the direct link between CSR and financial performance. In addition, it enriches the limited literature on CSR strategies in the context of developing countries. However, further studies should explore the opposite relationship, i.e. the impact of financial performance on CSR strategy. In addition, the authors believe that amongst other potential research avenues, it would be interesting to study the moderating role of the activity sector. Practical implications From a practical point of view, this study suggests new applications with respect to the link between CSR and financial performance. To enhance their company’s financial performance, managers need to ensure that intangible resources are managed efficiently. Originality/value The paper contributes to the literature by examining how a firm’s intangible resources mediate between CSR and competitive advantage and how competitive advantage mediates between intangible resources and financial performance. Second originality is related to the study of the link between CSR and the financial performance of business organisations in the context of a developing country.

scholarly journals HORIZONS OF RESEARCH IN GEOGRAPHY OF THE WORLD ECONOMY

HERALD ◽  
2017 ◽  
Vol 8 (20) ◽  
Author(s):  
Vladimir Alexandrovich Kolosov ◽  
Elena Alexandrovna Grechko ◽  
Xenia Vladimirovna Mironenko ◽  
Elena Nikolayevna Samburova ◽  
Nikolay Alexandrovich Sluka ◽  
...  
Keyword(s):  
Developing Countries ◽  
Division Of Labor ◽  
Global Economy ◽  
World Economy ◽  
Spatial Organization ◽  
Modern World ◽  
High Tech ◽  
Research Activities ◽  
The World ◽  
The Impact

The advent of "world economic transition" and the formation of a multipolar world is closely linked, according to experts, with loss of globalization advances, which strengthens regionalism, increases diversification and fragmentation of the modern world, creating risks and threats to the world development. In this light studying the spatial organization of the global economy becomes more important, and at the same time that complicates the choice of priorities in the research activities of the Department of geography of the world economy, Faculty of Geography, Moscow State Lomonosov University in 2016-20, requiring a new research “ideology”. The article summarizes some ideas expressed by the department staff. It specifies that concept of territorial division of labor, as well as the defined set of key actors in the world economy and common assumptions regarding their contributions to its development needs a significant revision. The above firstly concerns giant developing countries, in particular rapidly growing China – a kind of locomotive entraining other developing states. Further, the impact of multinationals on the overall architecture and the territorial organization of the global economy becomes more and more tangible. This phenomenon requires the creation of a new scientific area of concern – the corporate geography as a tool to thoroughly investigate the transnational division of labor. Changes in the balance of acting forces are closely related to changes in industry composition and spatial organization of the global economy. The article raises the issues of development of such processes as tertiarization of the economy, reindustrialization and neoindustrialization, the latter being understood as an evolutionary transition to a knowledge-intensive, high-tech, mass labor-replacing and environmentally efficient industrial production. Basing on preliminary research from the standpoint of a relatively new methodological approach – formation of value chains – the vector of "geographical transition" " in their creation from developed to developing countries was designated. This means increasing complexity of the territorial structure of the world economy and an increase in the importance of semi-periphery. A spatial projection of globalization processes in the form of emerging “archipelago of cities”, which consolidates the international network of TNCs as the supporting node frame of the global economy requires close attention and analysis. The need of comprehending the study scope in the field of geography of the world economy in medium Atlas Information Systems (AIS), which in terms of functionality belong to the upper class of electronic atlases, is noted.

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