scholarly journals The Vulnerability of Developing Countries to the Economic Crisis Due to the Pandemic: What Can Indonesia Do?

2021 ◽  
Author(s):  
Farida Rahmawati ◽  
Fidelis Dwi Putra Santoso
Keyword(s):  
Developing Countries ◽  
Informal Sector ◽  
Economic Performance ◽  
Global Economy ◽  
Budget Deficit ◽  
Developed Countries ◽  
Government Policies ◽  
Government Performance ◽  
Demographic Differences ◽  
Fiscal Space

The spread of COVID-19 has had a significant impact on the global economy, including in Indonesia. The pandemic affected all economic performance, including growth, price stability, exchange rates, unemployment, poverty and so on. Although the crisis was felt by all countries, developing countries felt a greater impact than developed countries. Through a qualitative analysis, this paper aims to explain why this can happen, what are government policies for pandemic mitigation and what are their impact. The results show that the crisis caused by the pandemic in Indonesia was caused by four things, namely the dominance of the informal sector, limited fiscal space, poor governance and demographic differences between developed and developing countries. So, a strategy is needed to overcome these obstacles. Strategies that can be carried out are through evaluating government performance, increasing the budget deficit and moderating lockdowns. These three strategies are expected to be able to help Indonesia through the crisis caused by the COVID-19 pandemic. Keywords: COVID-19 Pandemic, Demographic Differences, Informal Sector, Limited Fiscal Space, Poor Governance

The Rise of Transnational Corporations from Developing Countries in the Second Half of the 20th Century

Istoriya ◽  
2021 ◽  
Vol 12 (11 (109)) ◽  
pp. 0
Author(s):  
Alexey Kuznetsov
Keyword(s):  
Developing Countries ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
Global Economy ◽  
World Order ◽  
Developed Countries ◽  
Global South ◽  
Business Environment ◽  
Outward Foreign Direct Investment ◽  
Foreign Direct Investment Stock

The article highlights three stages of the formation of multinationals from developing countries. Although first Argentine TNCs appeared at the turn of the 19th — 20th centuries, in the majority of the Global South countries TNCs appeared in the 1960s — 1980s. With the collapse of the bipolar world order, which in many developing countries was accompanied by significant internal political and economic transformations, the second stage of foreign expansion of TNCs from the Global South began. Indeed, in 1990 they accounted for 6 % of global outward foreign direct investment stock, while the figure was 10 % by the end of 2005. We date the beginning of the third stage to the financial and economic crisis of 2007—2009, since multinationals from developing countries as a whole are more successfully overcoming the period of turbulence in the global economy. By the end of 2020, they accounted for 22 % of global outward foreign direct investment stock, and during the COVID-19 pandemic crisis they generally exported more than 50% of the capital. The modern foreign expansion of such TNCs has many reasons, differs greatly from country to country, and often differs slightly from the specifics of Western multinationals. At the same time, initially, “late internationalization” in developing countries had two main vectors — the use of new opportunities for South — South cooperation and overcoming, through the creation of subsidiaries in highly developed countries, the shortcomings of the business environment of “catching up” countries.

scholarly journals Industry 4.0 and Developing Countries: Innovation Perspective of Ethiopia, India and Bangladesh

2020 ◽  
Vol 6 (6) ◽  
pp. 62-70
Author(s):  
Amrut Rao ◽  
Ravindra Pathak ◽  
Ashraf Mahmud Rayed
Keyword(s):  
Developing Countries ◽  
Industry 4.0 ◽  
Global Economy ◽  
Information Technologies ◽  
Technological Development ◽  
Value Added ◽  
Developed Countries ◽  
Intelligent Manufacturing ◽  
Smart Manufacturing ◽  
Efficient Production

Ethiopia, India and Bangladesh are raising economic power, but have not yet integrated very much with the global economy and still have not achieved their potential in context of technology, globalization, and international competitiveness like developed countries. These countries have much strength, but at the same time , are facing many challenges in the increasingly competitive and fast changing global economy. The main key strengths of these courtiers are their large domestic market, young and growing population, a strong private sector with experience in market institutions, and a well developed legal and financial system. In today’s environment of global competition, technological development and innovation; companies, especially manufacturing, are forced to reconfigure their manufacturing and management processes. Industry 4.0 and intelligent manufacturing are part of a transformation, in which manufacturing and information technologies have been integrated to create innovative systems of manufacturing, management and ways of doing business. This system allows optimizing manufacturing, to achieve greater flexibility, efficient production processes and generate a value added proposal for their customers, as well as to provide a timely response to their market needs. The objective of this work is to explore the Industry 4.0, smart manufacturing, environment requirement and relation of innovation in perspective of developing countries.

scholarly journals Ethnic Diversity and Economic Performance

2005 ◽  
Vol 43 (3) ◽  
pp. 762-800 ◽  
Author(s):  
Alberto Alesina ◽  
Eliana La Ferrara
Keyword(s):  
Developing Countries ◽  
Ethnic Identity ◽  
Organizational Structure ◽  
Economic Performance ◽  
Ethnic Diversity ◽  
Developed Countries ◽  
Economic Policies ◽  
Negative Effects ◽  
Endogenous Formation ◽  
Open Issues

We survey and assess the literature on the positive and negative effects of ethnic diversity on economic policies and outcomes. Our focus is on communities of different size and organizational structure, such as countries, cities in developed countries, and villages and groups in developing countries. We also consider the endogenous formation of political jurisdictions and highlight several open issues in need of further research, in particular the endogenous formation of ethnic identity and the measurement of ethnic diversity.

A Study on the Economic Benefits of Globalization: Focusing on the Poverty and Inequality between the Rich and the Poor

2009 ◽  
Vol 12 (2) ◽  
pp. 191-214 ◽  
Author(s):  
Sang-Hyup Shin
Keyword(s):  
Developing Countries ◽  
Global Economy ◽  
Developed Countries ◽  
Economic Benefits ◽  
Global Poverty ◽  
The Poor ◽  
Poverty And Inequality ◽  
The World ◽  
The Rich ◽  
The Developed Countries

Globalization is now well recognized by many as an inescapable feature of the world today. In particular, in the middle of global economic crisis globalization is one of the hot issues drawing much attention from countries around the world. There are contradictory perspectives on globalization. There are many sweeping statements that assert that economic globalization is increasing global poverty and inequality between the rich and the poor in the world. There are also many others who insist that the poverty and inequality issues have been resolved in some sense through globalization. In order to find the answer to the question, firstly the meaning of globalization was fully explained. Based on the understanding of globalization, the questions such as how globalization has contributed to reduce the economic gap between the developed and the developing countries, and to reduce the poverty by analyzing the economic growth, the number of people living below the absolute poverty line and so on were analyzed. The reasons why globalization is a good opportunity for some countries while some other countries get not something from the globalization was also discussed in this research. We found that globalization has contributed to reduce global poverty and to increase the welfare of both the developed and developing countries. However globalization has impacted different groups differently. Some have benefited enormously, while others have borne more of the costs. The developed countries could get more economic benefits from the less developed countries through globalization. This means, inequality between the rich and the poor countries still remained as a serious threat in the global economy. And even among the developing countries globalization has impacted differently. The trends toward faster growth and poverty reduction are strongest in developing economies that have integrated with the global economy most rapidly, which supports the view that integration has been a positive force for improving the lives of people in developing countries There are two main reasons for the inequality existing between the developed and developing countries. The fist one is the difference of economic size and power between the developed countries and the developing countries started to exist from the late 18th century. The second one is the differences in the management skill in taking advantage of the globalization.

Superior economic performance in developed and developing countries

2017 ◽  
Vol 12 (1) ◽  
pp. 93-107 ◽  
Author(s):  
Sandra Ruiz ◽  
Paulo Arvate ◽  
Wlamir Xavier
Keyword(s):  
Developing Countries ◽  
Economic Performance ◽  
Probit Model ◽  
Developed Countries ◽  
Competitive Advantages ◽  
Content Type ◽  
Significant Difference ◽  
Kolmogorov Smirnov ◽  
The Difference ◽  
Using Data

Purpose The extant literature on emerging economies states that the development of the institutional context contributes to the creation of hypercompetitive conditions. The purpose of this paper is to test this assertion by using data from both developing and developed countries. Design/methodology/approach The study used a probit model, Kolmogorov Smirnov tests and propensity score matching to determine the difference in persistent superior economic performance. Panel data from 600 firms in 26 different countries were used for the period from 1995 to 2011. Findings The empirical results support the proposition that there is a significant difference in superior economic performance and persistent superior economic performance sustainability between firms in developed and developing countries. Originality/value This study contributes by fostering other theories related to competitive advantages and giving special emphasis to the comparison between developed and developing countries.

The Politics of Carbon Leakage and the Fairness of Border Measures

2010 ◽  
Vol 24 (4) ◽  
pp. 367-393 ◽  
Author(s):  
Robyn Eckersley
Keyword(s):  
Developing Countries ◽  
Global Economy ◽  
Emission Trading ◽  
Developed Countries ◽  
Carbon Leakage ◽  
Leadership Responsibilities ◽  
Playing Field ◽  
Climate Regulation ◽  
Production And Consumption ◽  
Border Adjustment

The article critically examines domestic political concerns about the competitive disadvantages and possible carbon leakage arising from the introduction of domestic emission trading legislation and the fairness of applying carbon equalization measures at the border as a response to these concerns. I argue that the border adjustment measures proposed in the emissions trading bills that have been presented to Congress amount to an evasion of the U.S.'s leadership responsibilities under the United Nations Framework Convention on Climate Change (UNFCCC). I also show how the “level commercial playing field” justification for border measures that has dominated U.S. domestic debates is narrow and lopsided because it focuses only on the competitive disadvantages and direct carbon leakage that may flow from climate regulation while ignoring general shifts in the production and consumption of emissions in the global economy, which have enabled the outsourcing of emission to developing countries. The UNFCC production-based method of emissions accounting enables Northern consumers to enjoy the benefit of cheaper imports from Southern producers and to attribute the emissions associated with this consumption to the South. I argue that it is possible to design fair border measures that address carbon leakage, are consistent with the leadership responsibilities of developed countries, do not penalize developing countries, and ensure that consumers take some responsibility for the emissions outsourced to developing countries.

scholarly journals How Does the Global Economy Crisis Influence in Managing Investment in Indonesia

The Winners ◽  
2012 ◽  
Vol 13 (2) ◽  
pp. 147
Author(s):  
Enggal Sriwardiningsih
Keyword(s):  
Developing Countries ◽  
Emerging Markets ◽  
Global Economy ◽  
Developed Countries ◽  
Subprime Mortgage ◽  
Poor Countries ◽  
Mortgage Crisis ◽  
The World ◽  
Liquidity Crisis ◽  
Growing Economy

July 2007 is the beginning of the world’s subprime mortgage crisis. Since then, the world’s liquidity crisis occurred and never found any solution until now. The liquidity crisis began to spread from developed countries to poor countries, developing countries and emerging markets with two channels. This contagious crisis made growing economy and emerging economy fell. No country in the world survived, including Indonesia. This paper discussed the management of investments in Indonesia. It started from the spread of global crisis to Indonesia and its impact on investment in Indonesia. Then, we discussed the government's efforts to encourage investment. The last was the view of the investment for the next three years (2010-2014)

scholarly journals The Realms Of Knowledge Management From An Organizational Perspective

2011 ◽  
Vol 8 (11) ◽  
Author(s):  
M. Abu Zar Wajidi ◽  
Muhammad Asim
Keyword(s):  
Developing Countries ◽  
Knowledge Management ◽  
Global Economy ◽  
Developed Countries ◽  
Business Strategies ◽  
Business Organizations ◽  
Organizational Perspective ◽  
Future Strategy ◽  
Management Aspect ◽  
Developed World

The international scenario of industrial competitiveness has tremendously transformed during the last few decades. Organizations competing in the global economy are facing different challenges in order to survive and make progress. The rapid advancements in computer technology, emergence of the internet, World Wide Web, and telecommunication devices have profoundly affected the activities of business organizations. These trends have forced the organizations to reshape and redefine their economic and business strategies. This factor can be counted as the knowledge boom which, in todays developed world, is more appropriately referred to as the knowledge management. Knowledge Management is one of the burning topics nowadays, which has brought significant changes in organizations in developed countries and gave new impetus for global competition and new challenges for the organization in developing countries. This paper aims at providing a ground work for organizations in developing countries. It will help organizations provide a framework for contribution to knowledge management aspect and also enable organizations in developing countries, especially large organizations intending to globalize their operations, to analyze their position and design a future strategy accordingly.

scholarly journals Development trends of the current global economy

2020 ◽  
pp. 23-26
Author(s):  
Viktoriia DERHACHOVA ◽  
Viktoriia HOLIUK ◽  
Oleksandr ZGHUROVSKYI
Keyword(s):  
Developing Countries ◽  
Economic Development ◽  
Global Economy ◽  
Industrial Revolution ◽  
Developed Countries ◽  
World Market ◽  
Economic Convergence ◽  
African Countries ◽  
Current Trends ◽  
The World

Nowadays modern economics is going through a lot of changes, that makes Ukrainian businessmen track its all current trends to support the necessary level of competitiveness on the world market. The purpose of the paper is to research the current trends of the global economy and identify its prospects. The study has brought the following results. The authors identified that among the most significant trends that determine the future of the global economy are the following: economic convergence, globalization, changes in the ranking of economic growth leaders in favor of Asian countries, the growth of cryptocurrency markets, constant growth of the global debt, changes in the demographic map in favor of African countries. China, which has been considered to be the major driver of global economic development for the last decade, will gradually lose its positions to India. The article points out that today we can observe a phenomenon of economic convergence, which approximates level of economic development of different countries through faster growth rates of gross domestic products in developing countries compared to developed countries. The main causes of economic convergence include globalization, which has contributed to the spread of know-how, decline in the working-age population in developed countries compared to the rest of the world, increase in labor productivity in developing countries, and redistribution of the labor force of these countries toward higher productivity sectors. The study identifies the prospects for modifying the economic map of the world based on the following factors: increase in the rate of development of Asian economies, population growth and urbanization of certain countries in Asia and Africa, slowdown in the economic development of developed countries and the aging of European nations. The article identifies that all of these trends take place in the framework of the fourth industrial revolution, which largely determines these changes, shaping the sectoral and geographical structure of the global economic development and employment.

scholarly journals The Catch-up Process in a Global Economy: An Analytical Approach

1997 ◽  
Vol 2 (1) ◽  
pp. 19-29
Author(s):  
Irfan ul Haque
Keyword(s):  
Latin American ◽  
Economic Performance ◽  
Global Economy ◽  
Developed Countries ◽  
African Countries ◽  
Economics Profession ◽  
Catch Up ◽  
The Developed Countries ◽  
Latin American Countries ◽  
Better Than

The diverse growth experience of economies across the globe is perhaps the most intriguing question that the economics profession faces. The economies of East Asia have grown rapidly over the past three decades, while the economic performance of the South Asian and Latin American countries has been relatively mediocre, although better than that of the African countries, where the per capita incomes have been generally declining. Among the developed countries also, there has been considerable diversity of economic performance.

Sign in / Sign up

Export Citation Format

Share Document