scholarly journals The Role of Macroeconomic Stability in Current Account Balances

Author(s):  
Murat Cetrez ◽  
Yasin Baris Altayligil

Abstract The role of macroeconomic stability in current account balances has not been studied with a calculated index in the literature until now. It is aimed to find out the role of macroeconomic stability in current account balances for the first time in the study. The analysis is completed for the period between 1980 and 2016 for 97 countries. The macroeconomic stability is represented by an index which is created with inflation rate, growth rate, unemployment rate and fiscal balance data of all the countries. It is found out that the macroeconomic stability is one of the important determinants of current account balances like institutional quality and financial development. It has a negative and statistically significant relationships with current account balances for four different country groups which are developing countries, all countries except industrial, all countries except industrial and African countries, and all countries. Results show that the macroeconomic stability is especially important for the developing countries rather than high income countries.

2006 ◽  
Vol 11 (1) ◽  
pp. 35-62
Author(s):  
Nawaz A. Hakro ◽  
Wadho Waqar Ahmed

This study is designed to assess the macroeconomic performance of fund-supported programs, and the sequencing and ordering of macroeconomic policies in the context of the Pakistan economy. The generalized evaluation estimator technique has been used to assess the macroeconomic impacts of the IMF supported programs. GDP growth, inflation rate, current account balance, fiscal balance and unemployment are used as the target variables in order to gauge economic performance during the program years. The vector of policy variables (that might have been adopted in the absence of programs) and the vector of foreign exogenous variables are also taken as explanatory variables in the model, so that the individual effect of the IMF supported programs could be assessed. The result suggests that as the IMF prescriptions were applied, the current account balance has worsened, the unemployment rate has significantly increased, and the inflation rate has increased during the years of fund-supported programs. Only the budget balance has shown signs of improvement. Furthermore an inadequate sequencing of reforms has contributed to the further worsening of the economic scenario during the program period.


Author(s):  
Priti Jain ◽  
Akakandelwa Akakandelwa

Increasingly, the importance of e-government is growing owing to higher quality delivery of government services, improved citizen empowerment through access to e-information, and better interactions between governments and their stakeholders. Despite all this recognition and appreciation of e-government, there is slow uptake and high failure of e-government in developing countries. A huge imbalance still remains between developed and developing countries, specifically in Africa because of numerous impediments. Africa lags far behind all other regions in the world. Some African countries have initiated e-government, such as Ghana, Nigeria, and South Africa, yet others have not taken any initiative or are very slow in realizing its full take off, for instance, Tanzania, Botswana, and Zambia. In light of the above background, the main purpose of this chapter is to determine the challenges and based on the findings make recommendations for adoption of E-Government in Arica. The chapter reviews the theoretical underpinning of E-Government as a tool for modernizing public administration; examines the present state of e-government in Africa; highlights the challenges and barriers African countries encounter in their quest to develop E-Government; reviews the role of public libraries in E-Government, and finally, makes recommendations for E-Government adoption in Africa and other developing countries.


Author(s):  
Emiliano Libman ◽  
Gabriel Palazzo

This paper highlights the role of external indebtedness and the presence of inflationary inertia in order to assess the effectiveness and sustainability of inflation targeting during disinflation episodes. As the recent Argentinian experience illustrates, a sluggish inflation rate and a significant current-account deficit may make the stabilization process difficult. To illustrate the point, we build a model that shows that, when inflation adjusts fast, the target may be achieved without building too much external debt. But if inflation adjusts slowly, an excessive build-up of external debt could lead to an increase in the risk premium, a sudden shortage of foreign exchange, and the eventual collapse of the inflation-targeting regime.


2017 ◽  
Vol 17 (2) ◽  
pp. 20160042 ◽  
Author(s):  
Bernard Njindan Iyke ◽  
Nicholas M. Odhiambo

This paper examines the role of inflationary threshold effects in the finance-growth relationship for Ghana and Nigeria. Ghana and Nigeria are relatively homogenous in terms of financial development, economic growth, and inflationary history and therefore provide an acceptable choice for this empirical analysis. Due to lack of data availability, the sample spans the period 1964–2011 for Ghana and 1961–2011 for Nigeria. Using appropriately specified threshold regressions, we found inflationary thresholds in both countries during the study periods. Specifically, the inflationary threshold range for Ghana is 10.73 %–29.83 %. For Nigeria, the inflationary threshold range is 10.07 %–19.25 %. By estimating the threshold regressions, we found financial development to have positive and significant effect on economic growth during low and moderate inflationary regimes; and insignificant effect on growth during high inflationary regimes, for both countries. In particular, financial development impact greatly on growth in Ghana when the rate of inflation is below a threshold of 10.73 % but dissipates when inflation rate reaches and exceeds 29.83 %. Similarly, financial development impact greatly on growth in Nigeria when the rate of inflation is below a threshold of 10.07 % but dissipates when inflation rate reaches and exceeds 19.25 %. The results imply that policymakers in these countries should take inflation into account when devising policies to promote financial development with the aim of generating economic growth. For without low or moderate inflation rates, such policies will not achieve their intended purposes.


1968 ◽  
Vol 22 (1) ◽  
pp. 44-71 ◽  
Author(s):  
Isaiah Frank

The key role of trade in the development process is widely accepted today. Two recent events, both relating to international organizations, underscore this acceptance. One was the convening in 1964 of the United Nations Conference on Trade and Development (UNCTAD) and its establishment as a permanent organ of the UN system. Under UNCTAD's aegis a continuing examination is being conducted as to ways of reshaping world trade policies in the interests of the developing countries. The other event was the adoption early the following year of a new set of articles on trade and development in the General Agreement on Tariffs and Trade (GATT). In the new articles recognition of the role of exports in economic development was established for the first time in the text of the GATT itself, and a constitutional basis was provided for GATT's many activities designed to promote the exports of developing countries. Elsewhere in this volume are essays evaluating the contributions of UNCTAD and GATT toward the promotion of development in the world's poor countries. In this essay I will rather explore more generally the relation between international trade and economic development and discuss some of the problems that have arisen in the effort to make trade a more effective instrument of development.


Author(s):  
Fred EKA

This study analyzes the links between public capital and growth using an econometric model of simultaneous equations, estimated on a panel of forty-three developing countries over the period 2003-2020. This growth model explains the determinants of GDP and public and private capital stocks. The accumulation of public, private and human capital generates externalities that are sources of endogenous growth. However, the formation of public capital generated a crowding out effect, to the detriment of that of private capital, because of differentiated budgetary constraints. Our results show that several developing countries have moved away from an optimal structure for the growth of sharing of available capital between the public and private sectors. In doing so, are institutions a prerequisite for the economic development of African countries.


2015 ◽  
pp. 1070-1092
Author(s):  
Priti Jain ◽  
Akakandelwa Akakandelwa

Increasingly, the importance of e-government is growing owing to higher quality delivery of government services, improved citizen empowerment through access to e-information, and better interactions between governments and their stakeholders. Despite all this recognition and appreciation of e-government, there is slow uptake and high failure of e-government in developing countries. A huge imbalance still remains between developed and developing countries, specifically in Africa because of numerous impediments. Africa lags far behind all other regions in the world. Some African countries have initiated e-government, such as Ghana, Nigeria, and South Africa, yet others have not taken any initiative or are very slow in realizing its full take off, for instance, Tanzania, Botswana, and Zambia. In light of the above background, the main purpose of this chapter is to determine the challenges and based on the findings make recommendations for adoption of E-Government in Arica. The chapter reviews the theoretical underpinning of E-Government as a tool for modernizing public administration; examines the present state of e-government in Africa; highlights the challenges and barriers African countries encounter in their quest to develop E-Government; reviews the role of public libraries in E-Government, and finally, makes recommendations for E-Government adoption in Africa and other developing countries.


2020 ◽  
pp. 66-98

The COVID-19 pandemic that spread to Russia as well as to other states of the world caused additional problems for our scientific life, making it impossible to hold the preplanned scientific events in usual format. The Centre for the Study of the Russian-African Relations and African States’ Foreign Policy of the Institute for African Studies of the Russian Academy of Sciences had scheduled on March 31, 2020 an international scientific conference “Africa in the context of the formation of a polycentric world”. The significance of this problem seems considerable enough, since its discussion raises a number of important issues, including the growing role of African countries in the process of creating a polycentric world and the desire of the African countries for greater subjectivity. At the same time, the fact that the modern global processes are taking place in the context of the growing competition among international actors for influence in the world, including Africa, becomes particularly important for Russia. Given the importance and relevance of the raised issues and the interest shown by potential participants (more than 40 applications were submitted), it was decided to hold the conference on March 31, 2020 by correspondence. The scholars, postgraduates and students, representatives of research institutes of Russian Academy of Sciences (Institute for African Studies RAS, Institute of Oriental Studies RAS, IMEMO RAS, Institute for the US and Canada Studies RAS, Institute of Far Eastern Studies RAS, Institute of Control Sciences RAS), as well as higher educational institutions (RUDN, MGIMO, etc.) took part in this conference. A wide range of issues was discussed, including various aspects of the African countries’ foreign policy, issues of African integration, Africa’s role and place in new geopolitical conditions, the policy of the leading economically developed and developing countries and Russia’s current policy on the African continent. The discussion on the first block of themes “Africa: global problems and current trends in the world economy” was opened with RUDN Prof. V. I. Yurtaev’s paper “Afro-Eurasia: challenges of participation in the formation of a polycentric world”. Не raised the following questions: will the rise of the Afro-Asian world as a new alternative to the existing world order occur in the 21st century, and how necessary are the European and/or Eurasian components in this process? A.I. Neklessa made a contribution on the rather controversial topic of “Postcolonialism in the context of civilizational and regional development”. In addition, there were papers on economic trends in North Africa (A.A. Tkachenko), digitalization in Tropical Africa (N. N. Tsvetkova), challenges that Africa faces today in the fight against drug trafficking (N. N. Grishina), money laundering and the financing of terrorism (Ntegge Edward). The second block of issues “Russia and Africa” was opened with E.N. Korendyasov’s substantive research paper dedicated to the new stage in the development of Russian-African relations, the milestone of which was the Russian-African Summit and Economic Forum in Sochi in October 2019. This topic was also discussed by G. M. Sidorova and E.V. Kharitonova. The economic aspect of Russian-African relations was reflected in the reports of E.V. Morozenskaya and S.N. Volkov, and the presentations of Z.S. Novikova and L.N. Kalinichenko contained an analysis of Russia’s cooperation with African countries in the fields of new technologies and energy sector. The increase in the scientific interest for African policy of the leading Western powers was shown by the reports of the third block “Western countries and Africa”. Five presentations (A.Yu. Urnov, V.K. Parkhomenko, G.R. Grigoryan, A.A. Stepanov, A.Ya.Matkovskaya) were devoted to US policy in Africa; the topic of three other reports (O. S. Kulkova, N.V. Ivkina, N. G. Gavrilova) were the relations of African countries with the EU. Two speakers (A. M. Khalitova and M. R. Toure) focused on the problem of French policies in Africa. Finally, this section concluded with the report on Japanese-African relations (A.A. Zabella). In contrast to the above papers, concerning the policies of separate developed countries or their groups in Africa, the report of corresponding member of RAS, doctor of Economics, Professor Leonid L. Fituni focused on the role of the concept of a politically exposed persons in the structure of mechanisms of the West’s sanctions pressure on African elites. The participants in the discussion showed the expected interest in the problem of the “new players” in Africa. This interest was particularly manifest during the discussion on the topics of the fourth block of problems “Emerging and developing countries and Africa”. The BRICS countries policy in Africa was in the focus of attention. Three reports were devoted to China’ s African policy (T.L. Deych, E.M. Serbina and O.L. Fituni), while two other (A.Yu. Borzova and A.L. Sapuntsov) – to Brazil-Africa relations. Such active new players on the continent as Turkey (Mirmehti Agazade) and the United Arab Emirates (S. V. Kostelyanets) were not left without attention, as well. The fifth block contains papers on a fairly broad topic “Foreign policy of African countries and inter-African relations”. Two participants (O. V. Konstantinova and A.Yu. Sharova) addressed the issue of African integration that has become particularly relevant in recent years, while the others devoted their reports to the problems of foreign policy of individual African countries: S.V. Nenashev – Angola, T.S. Denisova and E.N. Zanoskina – Nigeria, N.A.Panin and Yu.D. Vertashov – South Africa, S.M. Shlenskaya – Madagascar. The conference demonstrated a great interest of the scholars, postgraduates and students in the discussed problems and contributed to further researches within these main trends.


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