scholarly journals The slowing Growth of Global Economy: Keynesian and Neo-Classical Interpretations

2020 ◽  
Vol 99 (6) ◽  
pp. 142-152
Author(s):  
Anatoliy Bazhan ◽  
Keyword(s):  
Economic Growth ◽  
Money Demand ◽  
Economic Activity ◽  
Global Economy ◽  
Protection Policy ◽  
Cross Border ◽  
Keynesian Theory ◽  
The Us

The article outlines the reasons for the slowing growth of global economy in the last 2 years and analyzes the views of IMF and UNCTAD experts on this subject. The author concludes that the new US protection policy cannot be considered the main reason of the slowdown: the growth of US import tariffs for China and Europe does impede the economic growth in those regions, but it stimulates growth in the US and other countries whose corporations compete with Chinese producers in the US market. The author argues that the Keynesian theory gives a better explanation to the slower growth as it is attributed to lack of demand and productive investment. The article shows that the Keynesian theory needs to be corrected as well, because the liberalization of global economy distorts the connection between money demand, generated by incomes in various countries, and growth of their economies: the demand can be covered by goods produced abroad, while investment can be allocated for foreign projects. Thus, promotion of economic activity should utilize not only the traditional Keynesian recipes of financial and credit influence, but also the national customs and currency regulation, as well as respective cross border capital migration restrictions.

Growth and returns across countries

2021 ◽  
pp. 78-87
Author(s):  
Jesper Rangvid
Keyword(s):  
Economic Growth ◽  
Interest Rates ◽  
Stock Returns ◽  
Stock Prices ◽  
Economic Activity ◽  
Wide Margin ◽  
The Past ◽  
Long Run ◽  
The Us ◽  
Long Run Risk

This chapter examines the relation between long-run economic growth and returns across countries. Have countries that have experienced high GDP growth historically also experienced high stock returns? The chapter contains three main messages. First, there is no clear tendency that countries that have grown fast in the past are also countries that have delivered high stock returns in the past. Second, as in the US, stock prices have in many countries followed economic activity in the long run. Third, real interest rates relate to economic growth across countries in the long run.Another conclusion emerging from this chapter is that long-run stock returns exceed long-run rates of economic growth and long-run risk-free rates by a wide margin.

scholarly journals The UK and Digital Trade: Which way forward?

2021 ◽  
Author(s):  
Emily Jones ◽  
Beatriz Kira ◽  
Anna Sands ◽  
Danilo B. Garrido Alves
Keyword(s):  
Global Economy ◽  
Trade Agreements ◽  
Digital Economy ◽  
International Standards ◽  
Policy Implications ◽  
The Internet ◽  
Cross Border ◽  
Data Flows ◽  
The Us ◽  
The Uk

The internet and digital technologies are upending global trade. Industries and supply chains are being transformed, and the movement of data across borders is now central to the operation of the global economy. Provisions in trade agreements address many aspects of the digital economy – from cross-border data flows, to the protection of citizens’ personal data, and the regulation of the internet and new technologies like artificial intelligence and algorithmic decision-making. The UK government has identified digital trade as a priority in its Global Britain strategy and one of the main sources of economic growth to recover from the pandemic. It wants the UK to play a leading role in setting the international standards and regulations that govern the global digital economy. The regulation of digital trade is a fast-evolving and contentious issue, and the US, European Union (EU), and China have adopted different approaches. Now that the UK has left the EU, it will need to navigate across multiple and often conflicting digital realms. The UK needs to decide which policy objectives it will prioritise, how to regulate the digital economy domestically, and how best to achieve its priorities when negotiating international trade agreements. There is an urgent need to develop a robust, evidence-based approach to the UK’s digital trade strategy that takes into account the perspectives of businesses, workers, and citizens, as well as the approaches of other countries in the global economy. This working paper aims to inform UK policy debates by assessing the state of play in digital trade globally. The authors present a detailed analysis of five policy areas that are central to discussions on digital trade for the UK: cross-border data flows and privacy; internet access and content regulation; intellectual property and innovation; e-commerce (including trade facilitation and consumer protection); and taxation (customs duties on e-commerce and digital services taxes). In each of these areas the authors compare and contrast the approaches taken by the US, EU and China, discuss the public policy implications, and examine the choices facing the UK.

Globalization and Inequality

2008 ◽  
Vol 7 (4) ◽  
pp. 415-433 ◽  
Author(s):  
Erich Weede
Keyword(s):  
Economic Growth ◽  
Global Economy ◽  
Economic Freedom ◽  
Human Beings ◽  
Special Interests ◽  
The Poor ◽  
The Us ◽  
The World ◽  
Catch Up ◽  
Economic Growth Rates

AbstractGlobalization may be defined by a worldwide division of labor and increasing trade between nations. This is inconceivable without expanding economic freedom across the world. Free trade and globalization increase competition, productivity, and economic growth rates. In spite of increasing inequality within many large economies – including the US, China, and Russia – inequality between human beings and households has been reduced. Since catch-up growth in big Asian economies contributes to Schumpeterian “creative destruction,” it necessitates rich economies to adapt, to become ever more entrepreneurial and innovative. This generates resentment and strengthens protectionist excesses which might serve some special interests. But protectionism harms the global economy, the prospects of the poor to grow out of poverty and, worse still, likely increases the risk of war.

scholarly journals Do cross-border acquisitions create more shareholder value than domestic deals for firms in a mature economy? The Japanese case

2018 ◽  
Vol 15 (3-1) ◽  
pp. 268-281
Author(s):  
Kotaro Inoue ◽  
Robert Ings
Keyword(s):  
Economic Growth ◽  
Slow Growth ◽  
Shareholder Wealth ◽  
G7 Countries ◽  
Cross Border ◽  
Acquiring Firms ◽  
Target Firms ◽  
The Us ◽  
Shareholder Wealth Effect ◽  
Us Financial Crisis

In this paper, we analyse the shareholder wealth effect in domestic and cross-border acquisitions involving Japanese acquiring firms over the period from 2000 to 2010. The results of our study reveal that cross-border acquisitions create larger returns for the acquirers’ shareholders than domestic deals. Furthermore, although acquisitions of firms in G7 countries create larger value than other acquisitions in the period between 2000 and 2003, in the period between 2008 and 2010, which corresponds to a period of slow economic growth in G7 countries after the US financial crisis, acquisitions involving target firms in non-G7 countries created greater wealth gains for shareholders than deals that targeted firms in G7 countries. Our results highlight the growing importance of M&A target firms in growing markets for mature firms in advanced and slow-growth economies.

Trust, Incomplete Contracting, and Corporate Innovation

2021 ◽  
Author(s):  
Fei Xie ◽  
Bohui Zhang ◽  
Wenrui Zhang
Keyword(s):  
Economic Growth ◽  
Economic Activity ◽  
Incomplete Contracts ◽  
Incomplete Contracting ◽  
Technological Spillover ◽  
Cross Border ◽  
Corporate Innovation ◽  
Laws And Regulations

Innovation is a contract-intensive economic activity in a world of incomplete contracts. We show that trust mitigates incomplete contracting and enhances innovation by acting as an informal contracting mechanism. Trust plays an especially important role when formal laws and regulations are lacking, and it promotes innovation by encouraging collaboration and fostering tolerance for failure. Further analyses show that trust also facilitates cross-border technological spillover and innovation collaboration. Overall, our evidence highlights innovation as a key conduit through which trust affects economic growth. This paper was accepted by Gustavo Manso, finance.

scholarly journals Konkurencyjność przedsiębiorstw w dobie globalnego kryzysu finansowego

2010 ◽  
Vol 6 ◽  
pp. 78-91 ◽  
Author(s):  
Radosław Repetowski
Keyword(s):  
Economic Growth ◽  
Financial Crisis ◽  
Market Economy ◽  
Economic Activity ◽  
Global Economy ◽  
Global Financial Crisis ◽  
Stock Index ◽  
Limited Volume ◽  
The Global Financial Crisis ◽  
A Company

Competition is a process that occurs in every aspect of human activity especially when it comes to economic activity within the market economy, which is one of the fundamental forms of social organization of economic activity. Traders are forced to make decisions concerning both the production and resource allocation, which is an inherent factor in competition. One of the preconditions for the process of competition is the scarcity of a resource in relation to the demand for the goods. In the case of a market economy we are dealing with a limited volume of demand for the asset. So competition is one of the features of a market economy. The continuous competition of traders in order to achieve the same goal (profit maximizing), is a necessary factor in the success or failure of a company, industry, region or national economy. The situation becomes even more complicated when companies are forced to act in times of crisis. The crisis should be understood as a worldwide collapse of the economy manifested primarily by a fall of the stock index, decrease of production, rising unemployment, declining economic growth, declining revenues or by the failure of the financial system. The global economy is currently in a deep financial crisis, which is why, in order to survive, companies operating in that environment must have the ability to quickly adapt to the rapidly changing environment. The author of this text presents the essence of competition as an economic phenomenon, the causes of the global financial crisis and possible actions and strategies that may enable companies to compete effectively in the present crisis.

scholarly journals International Real Estate Review

2010 ◽  
Vol 13 (1) ◽  
pp. 109-116
Author(s):  
Mahalia Jackman ◽  
Keyword(s):  
Economic Growth ◽  
Real Estate ◽  
Economic Activity ◽  
Historical Data ◽  
Global Financial Crisis ◽  
Residential Construction ◽  
Job Opportunities ◽  
The Us ◽  
The Government ◽  
The Relationship

With the ongoing global financial crisis -which began with the collapse of the US sub-prime market in 2007 - the Barbadian economy is expected to contract in 2009. As a means of stimulating economic activity and providing job opportunities, the government has committed itself to completing 572 houses during the 2009/10 financial year. However, the arguments in favour of allocating more resources to residential construction have not been based on the existence of empirical analyses. This paper empirically investigates the relationship between residential construction and economic growth for Barbados. The historical data suggests that there is bi-directional causality between economic growth and residential construction. Hence, a policy that stimulates the housing market may boost economic activity.

The Global Crisis and its Consequences

2009 ◽  
Vol 2 (3) ◽  
pp. 1-17 ◽  
Author(s):  
Sandro Sideri
Keyword(s):  
Economic Growth ◽  
Technological Change ◽  
Global Economy ◽  
World Economy ◽  
Exit Strategy ◽  
Current Crisis ◽  
The Third ◽  
Economic Growth Model ◽  
The Us ◽  
The World

The first section of the paper identifies the immediate causes of a crisis that is both severe and global. The second section examines the unsustainable imbalance that feeds the current crisis: more than two billion people under-consume and save, while a few hundred million borrow and live beyond their means. This imbalance rests on, and at the same time strengthens, the huge and often widening income gaps between, and within, countries, including the redistribution in favor of capital and highly skilled labor caused by globalization and technological change. The third section explores the effects of the crisis and the problems that it is creating, including those generated by the way in which it is being handled and the “exit strategy” that will eventually be used. The crisis is accelerating the shift of power toward Asia, because the US is increasingly perceived as the destabilizer of the world economy, but until the imbalance is eliminated, the financialization of the global economy is brought under control and productive investment replaces the speculative activity of financial capitals, other crises are bound to follow. Which means that any future international order that emerges from the current mess must abandon the present economic growth model, while integrating globalization with regionalism. These two processes are already underway and may perhaps result in a more balanced and multipolar world system.

Book Reviews

2012 ◽  
Vol 50 (1) ◽  
pp. 192-195
Keyword(s):  
Economic Growth ◽  
New York ◽  
Economic Activity ◽  
Global Economy ◽  
High Growth ◽  
Industrialized Countries ◽  
New York University ◽  
The Future ◽  
Projected Changes

Arvind Subramanian of Peterson Institute for International Economics and Center for Global Development reviews “The Next Convergence: The Future of Economic Growth in a Multispeed World” by Michael Spence. The EconLit Abstract of the reviewed work begins: Explores observed and projected changes in the global economy between the mid-twentieth and mid-twenty-first centuries and considers whether the shifting pattern of economic activity and power is leading to a convergence between developing and industrialized countries. Focuses on the global economy and developing countries; sustained high growth in the developing world; the crisis and its aftermath; and the future of growth. Spence is Professor of Economics in the Stern School of Business at New York University and Senior Fellow at the Hoover Institution. Index.”

Peculiarities of Modern Dynamics of the Global Economy

2010 ◽  
pp. 78-92 ◽  
Author(s):  
V. Klinov
Keyword(s):  
Economic Growth ◽  
Economic Development ◽  
Business Cycles ◽  
Global Economy ◽  
Long Waves ◽  
Rapid Expansion ◽  
Business Taxation ◽  
Modern World ◽  
China And India ◽  
World Economic

Rates and factors of modern world economic growth and the consequences of rapid expansion of the economies of China and India are analyzed in the article. Modification of business cycles and long waves of economic development are evaluated. The need of reforming business taxation is demonstrated.

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