scholarly journals Explaining corruption: How do firms respond to non-gravity trade in developing countries?

2021 ◽  
Author(s):  
Lin Hu ◽  
Wenshou Yan
Keyword(s):  
Developing Countries ◽  
Financial Crisis ◽  
Gravity Model ◽  
Conditional Heteroskedasticity ◽  
Crisis Period ◽  
The World ◽  
Instrument Variable ◽  
Unit Increase ◽  
Alternative Measures

Abstract There has been limited effort to explore whether non-gravity trade, as not driven by standard variables entering an augmented gravity model, matters for firms’ corruption. To fill this gap, this paper explores the effect of non-gravity trade on firms’ corruption in 141 developing countries during the period 2006–2017. Our results show that non-gravity trade does matter for the firms’ corruption behavior. Specifically, we find that firms’ corruption decreases by 0.09–0.23% following a unit increase in non-gravity trade (e.g. 19.7 million dollars’ increase in real trade), and the effect is much larger during the world financial crisis period. The result is robust to exploiting conditional heteroskedasticity for identification, constructing a Bartik-type instrument variable, applying different econometric technics, and using alternative measures of firm corruption.

MARKET EFFICIENCY IN G-20 COUNTRIES: THE PARADOX OF FINANCIAL CRISIS

2013 ◽  
Vol 08 (01) ◽  
pp. 1350003 ◽  
Author(s):  
JOÃO PAULO VIEITO ◽  
K. V. BHANU MURTHY ◽  
VANITA TRIPATHI
Keyword(s):  
Financial Crisis ◽  
Market Efficiency ◽  
Stock Markets ◽  
Abnormal Returns ◽  
Weak Form ◽  
Ratio Test ◽  
Variance Ratio ◽  
Crisis Period ◽  
The World ◽  
Variance Ratio Test

This paper is amongst the first to investigate weak-form efficiency of the most developed (G-20) countries in the world. It also measures the impact of the 2007 financial crisis on the stock markets of these countries, in terms of their efficiency. Serial correlation test, ADF unit root test, Lo and MacKinlay (1988) variance ratio test, Chow and Denning (1993) RWH test and Wrights' 2000 ranks and signs based multiple variance ratio test were utilized to carry out this analysis. The entire study period was divided into a pre-crisis period (January 1, 2005 – August 8, 2007) and a during crisis period (August 9, 2007 – Deccember 31, 2011). Strong contemporaneous effects emerged across all international markets (except Saudi Arabia) as a consequence of the 2007 crisis. This may be due to increased international intra-day activity across the world markets. It was concluded that the "Samuelson dictum," which states that "while individual stocks are efficient, the market index is inefficient," seems to hold good on a global level by analogy. This is evident on the premise that, on the whole the 2007 crisis reduced return and increased volatility, even though individual markets became more efficient. The most robust result from the analysis is that most of the individual markets are weak-form efficient. Following the crisis of 2007, the methodology used indicates that on the whole, the market efficiency of individual stock markets improved.Hence, during the pre-crisis, volatility was low but heteroskedastic. However, during the period of the crisis, volatility was high but homoscedastic. The heightened volatility and low return that are a consequence of the crisis coupled with improved market efficiency, due to market vigil and control, ensure that abnormal returns and persistent arbitrage possibilities are wiped out. This appears to be a paradox of a crisis.

scholarly journals Surviving the Global Financial Crisis: Foreign Ownership and Establishment Performance

2012 ◽  
Vol 4 (3) ◽  
pp. 30-55 ◽  
Author(s):  
Laura Alfaro ◽  
Maggie Xiaoyang Chen
Keyword(s):  
Financial Crisis ◽  
Global Financial Crisis ◽  
Foreign Ownership ◽  
Differential Response ◽  
Crisis Period ◽  
The World ◽  
The Global Financial Crisis ◽  
Better Than

We examine the differential response of establishments to the recent global financial crisis with particular emphasis on the role of foreign ownership. Using a worldwide establishment panel dataset, we investigate how multinational subsidiaries around the world responded to the crisis relative to local establishments. We find that, first, multinational subsidiaries fared on average better than local counterfactuals with similar economic characteristics. Second, among multinational subsidiaries, establishments sharing stronger vertical production and financial linkages with parents exhibited greater resilience. Finally, in contrast to the crisis period, the effect of foreign ownership and linkages on establishment performance was insignificant in noncrisis years. (JEL F23, G01, L22, M16)

scholarly journals الأزمة المالية العالمية , اسبابها وأثارها في اقتصاديات الدول النامية

2020 ◽  
Vol 1 (1) ◽  
pp. 83-95
Author(s):  
هند الطائي
Keyword(s):  
Developing Countries ◽  
Financial Crisis ◽  
Global Economy ◽  
Global Financial Crisis ◽  
International Monetary System ◽  
Political Stability ◽  
Arab Countries ◽  
Political Freedom ◽  
The World ◽  
The Global Financial Crisis

The issue of the global financial crisis that hit the world economy since August 2007 was one of the worst economic crises after the Great Depression of 1929. This crisis was not the result of the moment, but the most important of which is the negative impact of the Asian financial crisis in 1997 and the crisis of the information technology sector in 2000, This crisis has caused the rest of the world due to interdependence. The recurrence of financial crises in developing countries is a worrying phenomenon that has threatened the economic and political stability of the countries concerned. The global economy is currently facing a real financial crisis that has hit the economies of developed and developing countries alike, starting in 2008 and emerging in 2008. The American financial crisis reflected on most of the economies of the world so that it became implicated in the global financial crisis. As the Arab countries are part of the global economic system, they will be negatively affected by this crisis. It is certain that the degree of their influencevaries among the Arab countries according to their degree of integration and integration into the global economy. Therefore, stepping out of them requires the intensification of the international efforts to review the international monetary system, giving all countries the full economic and political freedom to choose to link their currencies to an internationally agreed basket of currencies . The researcher tried here to explain how the global financial crisis has an impact on the economies of developing countries. The research section is divided into three sections. The first topic dealt with the global financial crisis in terms of concept, definition, characteristics and what types. The second topic dealt with the causes of the financial crisis and what are the positive and negative effects And the third topic dealt with the effects of the global financial crisis in the economies of developing countries, and concluded the research with a set of conclusions and recommendations

scholarly journals Impact of Financial Crisis on Textile Industry in Pakistan

2012 ◽  
Vol 4 (7) ◽  
pp. 409-416 ◽  
Author(s):  
Faisal Abbas ◽  
Muti Ur Rehman . ◽  
Aslam Perviz .
Keyword(s):  
Financial Crisis ◽  
Textile Industry ◽  
World Wide ◽  
Return On Equity ◽  
Crisis Period ◽  
Earnings Per Share ◽  
The World ◽  
Before And After ◽  
Profitability Ratios ◽  
Textile Sector

The aim of study is to analyze the performance of Textile sector in Pakistan covering the pre–crisis period, post crisis period and period of crisis as well. For this purpose data were collected from overall textile sector from available sources for the period of five years. According to the most of the analysts, financial crisis 2008-09 is serious one after the world wide great depression of 1930’s. The analyses have been conducted on the basis of financial ratios (Profitability, liquidity and activity). The profitability ratios such as returns on assets were affected by financial crisis because returns on asset were decreased in crisis period as compared to cover pre and post crisis and same is the situation of return on equity that was also affected by financial crisis. The earnings per share are also reduced in financial crisis period because before and after crisis earning per share was positive but negative in crisis. The liquidity of this sector was also affected by financial crisis. Turnover of the assets also proved that assets were poorly managed by textile sector in financial crisis period. The results showed that the performance of textile sector had been better in pre-crisis and post-crisis while it was bad during crisis period.

A Study On Current Financial Crisis In Developing Countries

2019 ◽  
Vol 118 (11) ◽  
pp. 15-29
Author(s):  
Ramyar Rzgar Ahmed ◽  
Sahar Jalal ◽  
S. Rabiyathul Basariya
Keyword(s):  
Developing Countries ◽  
Financial Crisis ◽  
Financial Development ◽  
General Condition ◽  
Social Effect ◽  
The Past ◽  
The World ◽  
Main Driver ◽  
Current Financial Crisis

A worldwide monetary and money related emergency has influenced the world by the expanding swelling and joblessness rate. It influences the billions of individuals living in creating countries, these emergencies have reinforced the general condition of emergency contained by spread neediness and outrageous destitution. The emergency had its inception in the most extravagant countries, however it had made more prominent effect on rising creating countries. The compromising emergency makes part of social effect and unmistakable impacts, for example, easing back worldwide monetary development, contracting world exchange, work misfortunes. It is significant and required to break down the worldwide monetary and budgetary emergency to discover the main driver of the rising monetary and money related emergency and give conceivable and reasonable arrangements dependent on the past accessible authentic financial and monetary emergency information. This monetary and money related emergency contains key components, for example, macroeconomic arrangements, budgetary area supervision and guideline, money related building, and the worldwide exercises of enormous private monetary establishments. A key exercise from the worldwide monetary and financial emergency is all that we have to reexamine the arrangements for financial development which have been existed in the course of recent decades. This paper depicts about the budgetary emergency and the reasons of the destruction of the money during 10 years and how we can conquer the circumstance.

scholarly journals Turkey’s Export Potential: A Gravity Model Analysis

2012 ◽  
Author(s):  
Sezai Ata
Keyword(s):  
Developing Countries ◽  
Gravity Model ◽  
World Economy ◽  
European Countries ◽  
Common Language ◽  
Goods And Services ◽  
The Past ◽  
The World ◽  
Set Up ◽  
High Level

Given the high level of integration of the world economy, foreign trade has become very important for the development of a country. Even though Turkey exports goods and services to the majority of countries in each continent, until recently Turkey has basically focused on exports to developed European countries. The main purpose of this study is to analyze Turkey's export potential with the help of the gravity model. For this purpose, first a gravity model has been set up using panel data which consists of bilateral data for 68 countries for the period 1980-2009, and then Turkey’s exports potential to 67 countries, accounting for more than 90 percent of Turkey’s total exports, has been calculated. The most important finding of the study is that Turkey’s exports in general is below potential and there is a further room for increasing exports. In this context, according to our analysis, while Turkey’s export potential has been used up especially for developed European countries, high levels of untapped export potential exists for the majority of neighboring countries and for some of the developing countries. Another finding from this study is that trade between two countries increases proportional to their GDPs and decreases proportional to the distance between them. While the existence of features such as common language, contiguity, being parts of the same state in the past and using the same currency increases the trade between two countries, the effect of some variables on trade such as the real exchange rate depends on countries' level of development.

Revisiting the Tobin Tax, in the Context of Development and the Financial Crisis

2009 ◽  
Vol 2 (1) ◽  
Author(s):  
Nicholas A Yates
Keyword(s):  
Developing Countries ◽  
Financial Crisis ◽  
Financial Stability ◽  
Global Financial Crisis ◽  
Global Development ◽  
Global Improvement ◽  
Tobin Tax ◽  
The World ◽  
Proper Consideration

In the climate of a global financial crisis the problem of financial stability is particularly potent, especially given the difficulties faced around the world in both developed and developing countries. A defence for future crises alongside a means of improving global development problems could possibly be found in the oft-debated Tobin tax. Furthermore, it is shown that the possibilities for global improvement as a result of such a move are too important to be disregarded without proper consideration. As a result of extensive research of the arguments surrounding the tax, it is suggested that the time is ripe for a re-evaluation of Professor Tobin's suggestion.

Another Asian Financial Crisis: Monetary Links between Hong Kong and China 1945—50

2000 ◽  
Vol 34 (3) ◽  
pp. 739-764 ◽  
Author(s):  
CATHERINE SCHENK
Keyword(s):  
Developing Countries ◽  
Hong Kong ◽  
Financial Crisis ◽  
Shock Waves ◽  
South Korea ◽  
Asian Financial Crisis ◽  
Main Symptom ◽  
The Us ◽  
The World ◽  
Monetary Relations

At the beginning of July 1997 Thailand was forced to allow the baht to fall 20% against the $US, triggering a financial crisis across Asia. This crisis toppled governments in the region and sent out a series of shock waves that threatened prosperity in the rest of the world. The main symptom of the crisis was a profound distrust in the currencies of developing countries in Asia which precipitated repeated devaluations in the ‘miracle’ economies of Indonesia, South Korea and Malaysia. One of the results of the Asian financial crisis is renewed interest in the monetary relations of the region, and in the mechanics of the transmission of currency instability between countries.

Searching for new Sources of growth. Are the Developing Countries Catching up with the Developed ones?

2015 ◽  
pp. 30-53
Author(s):  
V. Popov
Keyword(s):  
Developing Countries ◽  
Western Europe ◽  
Gdp Per Capita ◽  
The West ◽  
Catching Up ◽  
The Us ◽  
The World ◽  
Economic Divergence ◽  
Per Capita ◽  
Relative Standing

This paper examines the trajectory of growth in the Global South. Before the 1500s all countries were roughly at the same level of development, but from the 1500s Western countries started to grow faster than the rest of the world and PPP GDP per capita by 1950 in the US, the richest Western nation, was nearly 5 times higher than the world average and 2 times higher than in Western Europe. Since 1950 this ratio stabilized - not only Western Europe and Japan improved their relative standing in per capita income versus the US, but also East Asia, South Asia and some developing countries in other regions started to bridge the gap with the West. After nearly half of the millennium of growing economic divergence, the world seems to have entered the era of convergence. The factors behind these trends are analyzed; implications for the future and possible scenarios are considered.

On retroeconomy

2017 ◽  
pp. 148-159
Author(s):  
V. Papava
Keyword(s):  
Developing Countries ◽  
Detrimental Effect ◽  
International Competition ◽  
The World ◽  
The Government ◽  
Role Of The Government

This paper analyzes the problem of technological backwardness of economy. In many mostly developing countries their economies use obsolete technologies. This can create the illusion that this or that business is prosperous. At the level of international competition, however, it is obvious that these types of firms do not have any chance for success. Retroeconomics as a theory of technological backwardness and its detrimental effect upon a country’s economy is considered in the paper. The role of the government is very important for overcoming the effects of retroeconomy. The phenomenon of retroeconomy is already quite deep-rooted throughout the world and it is essential to consolidate the attention of economists and politicians on this threat.

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