scholarly journals CALCULATION PROCEDURE FOR OBTAINING THE QUOTA AFTER THE IMF REFORM: CHANGES IN SINGLE PACKAGE

2019 ◽  
Vol 2019 (5) ◽  
pp. 28-40
Author(s):  
Olena BORZENKO ◽  
Keyword(s):  
Developing Countries ◽  
Financial Stability ◽  
Global Financial Crisis ◽  
Developed Countries ◽  
Total Capital ◽  
Moral Problems ◽  
The Developed Countries ◽  
The Global Financial Crisis ◽  
New Formula ◽  
The Imf

The International Monetary Fund (IMF) keeps plans to complete the review of country quotas in 2019. The country’s quota in the IMF determines the amount of its financial obligations to the Fund; the number of votes in the Fund and the country’s access to financing depend on this quota. Lastly, these shares were redistributed in 2010 under the 14th revision of quotas, when IMF total capital was increased by 100%, and only 6% of the quotas were transferred to developing countries. However, the total share of developing countries in the Fund is only 42.5%; the remaining 57.5% belong to developed countries. The G20 has previously approved a roadmap according to which the quotas for IMF shareholder countries should be redistributed by the new formula until 2019. Countries with emerging economies should gain more weight in this institution, created to maintain the financial stability of its participants, while traditional shareholders should lose some of their share. However, earlier this formula could not be agreed because of the US counteraction. Indeed, currently, the allowable ratio of debt to GDP is revised upward in most countries, with these changes most noticeable in countries with emerging markets. It is expected that for such countries, the debt index may exceed the level observed at the beginning of the global financial crisis of 2008-2009. The developed countries with a debt burden exceeding 100% of GDP remain vulnerable as well. As a result, the probability of long-term preservation of low GDP growth rates increases. At one time, Cooper’s group refused to use the debt index, believing that it could cause certain “moral problems”: the states would be interested in debt build-up to increase their quota in the IMF.

scholarly journals Modeling Outcomes of Unconventional Monetary Policy

2019 ◽  
Vol 8 (4) ◽  
pp. 10263-10268
Keyword(s):  
Monetary Policy ◽  
Financial Crisis ◽  
Global Financial Crisis ◽  
Consumer Price Index ◽  
Developed Countries ◽  
Central Banks ◽  
Unconventional Monetary Policy ◽  
The Us ◽  
The Developed Countries ◽  
The Global Financial Crisis

The paper presents a study of the outcomes of the unconventional monetary policy methods that the central banks of developed countries have been applying during and after the global financial crisis. Before the crisis central banks used the interest rate policy as their main tool. But the recent financial crisis has demonstrated the inefficiency of traditional methods (especially after the base interest rate has reached zero). Therefore in response to the global financial crisis, central banks of many countries have taken unconventional measures to overcome the crisis. The paper aims to study the main outcomes of unconventional monetary policy measures of the developed countries and formulate the recommendations for the developing countries. The following objectives are being met in the paper:to reveal the essence of the main mechanisms for implementing the unconventional monetary policy; to evaluate the efficiency of unconventional monetary policy in the US, Japan, United Kingdom;to model the impact of monetary policy of the European Central bank on the consumer price index in the Eurozone countries. Research methods: method of comparative analysis is usedto evaluate the efficiency of the unconventional monetary policy in the US, Japan, European Union and the United Kingdom.The model of themonetary policy impact on the consumer price index is based on econometric analysis and is constructed using the least squares method. The studied model includes both traditional and non-traditional methods.Observation period - quarterly data from 1999 to the second quarter of 2019. The results of the analysis show that unconventional monetary policy methods of the central banks of the developed countries reached major goals - to prevent bankruptcies of large financial institutions in national economies. Moreover, the results of the suggested model show that the European Central Bank policy has also reached its inflation target that supposed to stimulate economic growth; the most significant effect is observed in the first years after the launch of an unconventional monetary policy. At the same time the unconventional tools of monetary policy stimulate the extreme increase of the securities prices, which led to the “overheating” of the US stock market and the EU national bonds markets with the negative yield on government securities of several countries, which may become a trigger for a new global crisis in the future. The result of the analysis of monetary policy in Ukraine shows the limitations of the use of non-traditional measures for the developing countries.

Business founders and performance of family firms: evidence from developing countries in Asia

2020 ◽  
Vol 15 (2) ◽  
pp. 217-239
Author(s):  
Yee Peng Chow
Keyword(s):  
Developing Countries ◽  
Family Firms ◽  
Global Financial Crisis ◽  
Developed Countries ◽  
Ordinary Least Squares ◽  
Superior Performance ◽  
Least Squares Regression ◽  
Content Type ◽  
And Performance ◽  
The Global Financial Crisis

Purpose The purpose of this study is to examine how business founders influence the performance of family firms in developing countries in Asia. Design/methodology/approach The pooled ordinary least squares regression is used on a sample of 134 public listed family firms from four developing countries in Asia during the period 2004–2014. This study also conducts sub-period analyses where the study period is divided into three sub-periods, i.e. before, during and after the global financial crisis (GFC). Findings This study finds that founder-led family firms outperform family firms led by nonfounders for the full study period. The results for the sub-period analyses also show that founder-led family firms outperform nonfounder-led family firms for the pre-crisis and during crisis periods. Finally, this study finds no evidence supporting the superior performance of founder-led family firms post-GFC. Originality/value Because family firm is one of the most fundamental forms of business organization in the world, policymakers have great concerns about how business founders influence the performance of these firms. Nonetheless, the existing research on family firms is chiefly concentrated on developed countries but there is a paucity of studies being conducted in the context of developing countries. Moreover, previous research has only considered the performance of these firms during normal or turbulent times but no prior studies have compared the firm performance during normal, turbulent and recovery periods. It is the aim of this paper to address these research gaps by using a new and more recent set of data.

Governance and Capital Accumulation under Globalization

2015 ◽  
pp. 135-154
Author(s):  
Kamal Ray ◽  
Ramesh Chandra Das ◽  
Utpal Das
Keyword(s):  
Developing Countries ◽  
Capital Accumulation ◽  
Global Financial Crisis ◽  
Good Governance ◽  
Developed Countries ◽  
Capital Formation ◽  
Causality Test ◽  
Governance Indicators ◽  
The Usa ◽  
The Developed Countries

Sustaining good governance is necessarily required for all countries in the world after the phase of globalization, especially when almost the entire world is struck by the global financial crisis originated from the USA. The present study tries to concentrate upon establishing an interlinkage among capital accumulation of a sample of countries with principal components of governance for the time period 1996-2012. Correlation analysis along with the Granger Causality test is applied to identify directions of causalities among capital formation and all the governance indicators. The study observes an inverse relation between governance indicators and capital accumulation for majority of the developing countries and in some cases positive relations for developed countries. Besides, it is observed that there are causal relations from capital formation to governance in most of the developed countries whereas in most of the developing countries there are causalities from governance to capital formation.

scholarly journals AKTUALISASI INDONESIA DALAM G20: PELUANG ATAU TREN?

2019 ◽  
Vol 1 (1) ◽  
pp. 1
Author(s):  
Sukma Sushanti
Keyword(s):  
Developing Countries ◽  
Financial Crisis ◽  
Global Financial Crisis ◽  
National Interest ◽  
Developed Countries ◽  
Global Scale ◽  
International Governance ◽  
Active Member ◽  
Cooperation Mechanism ◽  
The Developed Countries

ABSTRAK Bermula dari sebuah pemikiran untuk menyelesaikan krisis keuangan global, dan diperlukannya sebuah penguatan internasional yang berasal dari komitmen negara-negara yang mempunyai skala ekonomi terbesar, eksistensi G20 menjadi sebuah harapan baru bagi pertumbuhan ekonomi dunia. Klub ekonomi eksklusif ini hadir untuk memberikan sebuah kerangka global, yang kemudian diinfiltrasikan ke berbagai institusi internasional ataupun mekanisme kerjasama ekonomi. Banyak negara yang memberikan pengharapan pada komunitas ekonomi eksklusif ini melalui keterwakilan anggota aktif dalam kelompok ini. Tidak terlepas pula mandate yang melekat pada Indonesia sejak ditetapkannya sebagai anggota tetap G20. Indonesia menjadi vital point bagi negara-negara berkembang untuk menyuarakan kepentingan mereka, terutama terkait dengan perimbangan kekuasaan pada konteks perdagangan internasional. Jika Indonesia dapat memainkan perannya secara baik dalam G20, maka capaian kepentingan nasional negara dapat terakses dengan baik tanpa mengesampingkan tuntutan moral secara regional ataupun global. Kritik muncul ketika peran Indonesia dinilai hanya sebagai bandwagoning terhadap negara-negara besar, tanpa mempertimbangkan sebuah kalkulasi rasional yang mumpuni bagi kepentingan nasionalnya. Kata kunci: skala ekonomi terbesar, perimbangan kekuasaan, kepentingan nasional. bandwagoning, kalkulasi rasional   ABSTRACT Starting with the idea to build mechanism in resolving global financial crisis, in which need international commitment from the countries with the largest economy scale to strengthening the international governance, the existence of G20 lead to the new hope for the future of the world economy. This exclusive economy club emerge to create global framework then infiltrating vary recommendations into various international economy institution, also cooperation mechanism, both in regional and international scale. The states rely their hope on this club through the active member states representative in G20.  Thus, Indonesia has a mandate to voice the interest of developing countries since inaugurated as the permanent member of G20. Indonesia become a vital point of the interest from the developing countries, in the context to balance the power in international trade system. If Indonesia able to play as the important actor in G20, then its national interest will achieve smoothly, without neglecting the moral demand in regional or global scale. The critics arise when people start to see the role of Indonesia is only as bandwagon state of the developed countries rather than being rational to calculate the achievement of the national interest in G20. Keywords: global financial crisis, largest economy scale, developing countries, national interest, bandwagon state

China in the Period of Global Crisis: Beneficiary, Victim or Culprit?

2010 ◽  
pp. 93-114
Author(s):  
P. Mozias
Keyword(s):  
Economic Growth ◽  
Global Financial Crisis ◽  
Trade Deficit ◽  
Developed Countries ◽  
Mirror Reflection ◽  
Stabilization Policy ◽  
Trade Surplus ◽  
Institutional Reforms ◽  
The Developed Countries ◽  
The Global Financial Crisis

This article analyzes new opportunities and challenges associated with Chinas entry into the world economy against the background of the recent crisis. It is shown that Chinas domestic macroeconomic disequilibria contributed heavily to the global disbalances which resulted in the global financial crisis. Extremely high rates of saving and investment, along with the huge trade surplus of China, are a mirror reflection of the US economic problems, such as negative gross saving rate, overdependence on consumer demand for economic growth, trade deficit and hefty inflows of foreign capital. Chinas economic cycle broke even in late 2007 - early 2008 that was aggravated with the recession in the developed countries. Hence Chinas economy met with unprecedented economic difficulties. Chinas government stabilization policy was up to the mark, and the economy has accelerated again. But deepening institutional reforms is essential for harmonic economic growth.

scholarly journals Tourism and economic growth: Multi-country evidence from mixed-frequency Granger causality tests

2021 ◽  
pp. 135481662199015
Author(s):  
Martin Enilov ◽  
Yuan Wang
Keyword(s):  
Economic Growth ◽  
Developing Countries ◽  
Causal Relationship ◽  
Granger Causality ◽  
Global Financial Crisis ◽  
Developed Countries ◽  
Global Perspective ◽  
Mixed Frequency ◽  
Tourism Sector ◽  
The Global Financial Crisis

This article provides new global evidence for the causal relationship between international tourist arrivals (TA) and economic growth (EG). The analysis considers 23 developing and developed countries and covers the period from January 1981 to December 2017. The causal relationship between TA and EG is determined using a bootstrap mixed-frequency Granger causality approach adopting a rolling window technique to evaluate its stability and persistency over time. Empirical results show that causality is time-varying in both the short-term and the long-term. We illustrate our results by constructing a new global connectivity index (GCI). The GCI shows that international TA remain a leading indicator for future EG in a global perspective, especially during the global financial crisis (GFC). Our findings suggest that tourism sector plays an important part in the future EG in developing countries after the GFC. Similarly, the period after the GFC is characterised by one of the highest values of the tourism-led EG in developed countries according to the GCI; however, this effect is temporal and quickly eradicates. Overall, we find that tourism sector in developing countries remains a primary contributor to future EG, which is not the case in developed countries.

2011 Triennial Surveillance Review - External Study - IMF and Global Financial Stability

Policy Papers ◽  
2011 ◽  
Vol 2011 (52) ◽  
Author(s):  
Keyword(s):  
Financial Institutions ◽  
Executive Director ◽  
Financial Stability ◽  
Global Financial Crisis ◽  
Monetary Authority ◽  
Policy Makers ◽  
Crisis Prevention ◽  
Run Up ◽  
The Global Financial Crisis ◽  
The Imf

External study prepared by John Palmer, Chair, Toronto Leadership Centre, former Superintendent, Office of the Superintendent of Financial Institutions, Canada, former Deputy Managing Director Monetary Authority of Singapore, former Canadian Managing Partner of KPMG and Yoke Wang Tok, Former Senior Advisor to the IMF Executive Director representing ASEAN, Nepal, Fiji and Tonga and former Principal Economist, Monetary Authority of Singapore: This report aims to provide an independent view of how the Fund is discharging its multilateral surveillance responsibilities, in particular its contribution to global financial stability and crisis prevention, working in coordination with other relevant international groupings/institutions such as the FSB and BIS. As we emerge from the global financial crisis (GFC), the Fund has regained much of its credibility and relevance. The GFC caught many, including the IMF, by surprise. Since then, the Fund has done considerable self-analysis and taken active steps to strengthen its surveillance and policy advice and to improve traction with policy makers. The IEO report on the Fund’s performance in the run-up to the financial and economic crisis identified various shortcomings that needed to be addressed. One of its key findings was the inability of the Fund to connect-the dots, to deliver hard-hitting messages and the difficulty experienced by the Fund in thinking beyond mainstream/official views. Many of the IEO’s findings have relevance to this review.

scholarly journals Observations of deglobalization against globalization and impacts on global business

2020 ◽  
Vol 4 (2) ◽  
pp. 83-103
Author(s):  
Hag-Min Kim ◽  
Ping Li ◽  
Yea Rim Lee
Keyword(s):  
Developing Countries ◽  
Panel Data ◽  
Global Financial Crisis ◽  
Developed Countries ◽  
Negative Influence ◽  
Global Business ◽  
Content Type ◽  
Business Executive ◽  
Statistical Measures ◽  
The Global Financial Crisis

PurposeThis study aims to investigate current deglobalization against globalization and to hypothesize reasons and drivers of deglobalization. In addition, the study suggests an empirical model to test whether deglobalization exists in the world economy. The consequences of deglobalization are discussed.Design/methodology/approachVarious measures for deglobalization are introduced for monitoring the deglobalization of a country, and statistical measures are reported. The research framework for deglobalization and empirical models are suggested. The relationship between deglobalization and globalization is being modeled using three KOF globalization indexes: economic, political and societal. This study used panel data from 1970 to 2017 for developed and developing countries to determine the degree of deglobalization.FindingsDeglobalization has been found empirically since the global financial crisis. Deglobalization is estimated by the decreasing trend of import share in a country's gross domestic product and is influenced by manufacturing imports, country's income divide and political globalization. Both economic and societal globalizations have negative influence on deglobalization. Deglobalization is more apparent in developed countries than in developing countries, and the deglobalization trend will continue in diverse formats.Research limitations/implicationsThis study limits the use of few variables to test the antecedents of deglobalization. Another study can be done to extend preceding variables and estimate the consequences of deglobalization, which may segregate the globalization effect. The international business executive should understand the complexity of deglobalization and consider business benefits and risks to be encountered.Originality/valueThis study used panel data from 1970 to 2017 for developed and developing countries to determine the degree of deglobalization.

International Economic Assistance in the 1970's — A Critique of Partners in Development (Review Article)

1970 ◽  
Vol 10 (4) ◽  
pp. 469-490
Author(s):  
Nurul Islam
Keyword(s):  
Developing Countries ◽  
Foreign Aid ◽  
International Aid ◽  
Developed Countries ◽  
Armed Conflicts ◽  
Economic Assistance ◽  
Self Help ◽  
Service Charge ◽  
The Developed Countries ◽  
Defence Expenditure

Foreign economic aid is at the cross-roads. There is an atmosphere of gloom and disenchantment surrounding international aid in both the developed and developing countries — more so in the former than in the latter. Doubts have grown in the developed countries, especially among the conservatives in these countries, as to the effectiveness of aid in promoting economic development, the wastes and inefficiency involved in the use of aid, the adequacy of self-help on the part of the recipient countries in husbanding and mobilising their own resources for development and the dangers of getting involved, through ex¬tensive foreign-aid operations, in military or diplomatic conflicts. The waning of confidence on the part of the donors in the rationale of foreign aid has been accentuated by an increasing concern with their domestic problems as well as by the occurrence of armed conflicts among the poor, aid-recipient countries strengthened by substantial defence expenditure that diverts resources away from development. The disenchantment on the part of the recipient countries is, on the other hand, associated with the inadequacy of aid, the stop-go nature of its flow in many cases, and the intrusion of noneconomic considerations governing the allocation of aid amongst the recipient countries. There is a reaction in the developing countries against the dependence, political and eco¬nomic, which heavy reliance on foreign aid generates. The threat of the in¬creasing burden of debt-service charge haunts the developing world and brings them back to the donors for renewed assistance and/or debt rescheduling.

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