The Impact of the Movement of Labour: Results from a Model of Bilateral Migration Flows

2011 ◽  
Vol 11 (4) ◽  
pp. 1850240 ◽  
Author(s):  
Terrie L. Walmsley ◽  
Alan Winters ◽  
Amer Ahmed
Keyword(s):  
Developing Economies ◽  
Migration Model ◽  
Global Migration ◽  
Developed Economies ◽  
Migration Data ◽  
Economics Literature ◽  
Unskilled Labour ◽  
Migration Flows ◽  
The Impact

The economics literature increasingly recognizes the importance of migration. In this paper, a bilateral global migration model is developed to investigate the impact of lifting restrictions on the movement of labour. Quotas on skilled and unskilled labour in the developed economies are increased by 3% of their labour forces, with the additional labour supplied by developing economies. This paper improves upon the previous work of Walmsley and Winters (2005). A critical weakness of the previous work was that it was unable to capture the impacts of specific bilateral migration flows or liberalizations between countries. This paper uses a bilateral global migration model that exploits migration data obtained from Parsons, Skeldon, Winters, and Walmsley (2007) that allow the model to account for bilateral migration flows. The results confirm that restrictions on migration impose significant costs on nearly all countries, with the modest liberalization increasing global GDP by US$ 288 billion. All of the developed (labour importing) economies gain in terms of real incomes. While results differ across the developing (labour exporting) economies, most gain as a result of the higher remittances sent home.

scholarly journals The Impact of Real Exchange Rate Undervaluation on Economic Growth: Evidence from Panel Cointegration Approach

2020 ◽  
Author(s):  
Mehdi Seraj ◽  
Cagay Coskuner ◽  
Seyi Saint Akadiri ◽  
Negar Bahadori
Keyword(s):  
Economic Growth ◽  
Exchange Rate ◽  
Real Exchange Rate ◽  
Developing Economies ◽  
Panel Cointegration ◽  
Least Square ◽  
Ordinary Least Square ◽  
Developed Economies ◽  
Periodic Data ◽  
The Impact

Abstract This study revisited Dani Rodrik (2008) work on real exchange rate undervaluation and economic growth by using the Fully Modified Ordinary Least Square (FMOLS) and Dynamic Ordinary Least Square (DOLS). This research, to the best of authors' knowledge, is the first to use FMOLS and DOLS approach to empirically evaluate Rodrik work on the real exchange rate and economic growth using a Panel periodic data (six sets of five years) of 82 countries throughout 1990 to 2018. We used the Balassa Samuelson method to estimate the predicted real exchange rate and real exchange rate undervaluation. Finally, the study is in support of Rodrik conclusion that, real exchange undervaluation has a significant impact on the economic growth of the developing economies and statistically insignificant in the developed economies.

Sectoral analysis of productivity in the developing and developed economies of Asia-Pacific

2019 ◽  
Vol 13 (1) ◽  
pp. 37-71
Author(s):  
Pami Dua ◽  
Niti Khandelwal Garg
Keyword(s):  
Technological Progress ◽  
Developing Economies ◽  
Trade Openness ◽  
Institutional Quality ◽  
Asia Pacific ◽  
Government Size ◽  
Financial Openness ◽  
Content Type ◽  
Developed Economies ◽  
The Impact

Purpose The study aims to empirically investigate the trends and determinants of labour productivity of the two broad sectors –industry and services – and their components, namely, manufacturing and market services sectors, in the case of major developing and developed economies of Asia-Pacific over the period 1980-2014 and make a comparison thereof. Design/methodology/approach The study uses econometric methodology of panel unit root tests, panel cointegration and group-mean full modified ordinary least squares (FMOLS). Findings The study finds that while capital deepening, government size, institutional quality, productivity of the other sector and financial openness affect productivity of all the sectors significantly, the impact of human capital and trade openness varies across sectors in the case of developing economies. Furthermore, the impact of technological progress becomes significant in the post-liberalization reforms period in the developing economies. The study further finds that capital deepening, human capital, government size, institutional quality, productivity of the other sector, government size and trade openness are significant determinants of productivity of all sectors of developed economies under consideration. However, the impact of technological progress is stronger for manufacturing sector than services and its components. Furthermore, while both equity and debt liabilities (as measures of financial openness) influence sectoral productivity of industry and manufacturing sectors positively and significantly in case of developed economies, only equity liabilities have a significant influence on the productivity of developing economies. This may indicate existence of more developed financial markets in the case of developed economies. Originality/value The study identifies important structural differences in determinants of productivity both across sectors and across developing and developed economies of Asia-Pacific.

scholarly journals Volatility in Discretionary Public Spending and Economic Growth: A Cross Country Analysis

2020 ◽  
Vol 59 (1) ◽  
pp. 45-68
Author(s):  
Muhsin Ali ◽  
Karim Khan
Keyword(s):  
Economic Growth ◽  
Economic Performance ◽  
Developing Economies ◽  
Public Spending ◽  
Jel Classification ◽  
Developed Economies ◽  
Potential Control ◽  
Country Analysis ◽  
Cross Country ◽  
The Impact

Volatility in discretionary public spending has diverse implications for the overall economic performance of economies. In this study, we examine the impact of volatile non�systematic discretionary public spending on economic growth. By employing cross-country data of 74 developed and developing economies, we find that volatility in non-systematic discretionary public spending has an adverse impact on economic growth. In particular, such impact is severe in the case of less developed economies. Our findings are robust to the problem of endogeneity. In order to ensure the accuracy of the results, we conduct sufficient sensitivity analysis by incorporating a bunch of potential control variables. In most of the cases, the results with regard to the policy volatility remain intact. This suggests that effective spending rules, i.e. permanent numerical limits, should be imposed on budgetary aggregates to restrain governments from the volatile use of discretionary spending. JEL Classification: H3; H5 Keywords: Volatility in Discretionary Public Spending, Economic Growth, Effective Spending Rule

scholarly journals Antidumping as a Development Issue

2011 ◽  
Vol 11 (3) ◽  
pp. 1850237 ◽  
Author(s):  
Robert M. Feinberg
Keyword(s):  
Developing Countries ◽  
Trade Policy ◽  
Development Economics ◽  
Developing Economies ◽  
Developed Economies ◽  
Development Issue ◽  
The Past ◽  
Economics Literature ◽  
Antidumping Policy

Antidumping policy was for many years an instrument employed almost exclusively by a small number of developed economies. Over the past 15 years, however, the use of this instrument of trade policy has spread to developing economies, and the overwhelming share of antidumping cases now involve developing countries either as petitioner or as target of these cases. This paper describes these trends in some detail and discusses some implications. A focus of the paper is the absence of discussion in the development economics literature on the topic despite the increasingly important role played by antidumping policy.

scholarly journals Determinants of Foreign Direct Investment in Developed and Developing Countries: Impact of Political Stability

2021 ◽  
Vol 17 (4) ◽  
pp. 1390-1404
Author(s):  
R.I. Vasilyeva ◽  
◽  
O.S. Mariev ◽  
Keyword(s):  
Developing Countries ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
Developing Economies ◽  
Political Stability ◽  
Policy Implications ◽  
Likelihood Method ◽  
Developed Economies ◽  
Development Level ◽  
The Impact

Stable political environment and prominent development of political institutions increase foreign direct investment flows by providing lower risks for investors. However, this impact can vary according to the development of the country. This study aims to investigate the impact of various indicators of political stability on foreign direct investment attraction for different economies distinguished by their development level. Our database includes 66 FDI-recipient countries and 98 FDI-investing countries for the period from 2001 to 2018. By applying the gravity approach and Poisson Pseudo Maximum Likelihood method with instrumental variables (IV PPML), we model bilateral FDI flows, incorporating variables reflecting various aspects of political stability formed by the principal components analysis. Interestingly, we found mixed results regarding the impact of political stability on FDI flows. In particular, political stability indicators were found to be insignificant, when analysing the bilateral FDI flows for the group of developed economies. We obtained similar result for the group of developing economies. However, political stability variables significantly influence FDI flows for countries with different development level, confirming the hypothesis that countries’ development affects bilateral FDI flows. Besides, we discover the significant difference between developed and developing countries referring to FDI-investors. Based on the obtained results, we highlight a few policy implications for developing and developed economies.

scholarly journals The influence of internal migration on male earnings in Brazil, 1970–2000

2018 ◽  
Author(s):  
Ernesto F. L. Amaral ◽  
Eduardo L G Rios-Neto ◽  
Joseph E Potter
Keyword(s):  
Internal Migration ◽  
Negative Impact ◽  
Methodological Approach ◽  
Cohort Size ◽  
Reverse Causality ◽  
Migration Rates ◽  
Migration Data ◽  
Initial Hypothesis ◽  
Migration Flows ◽  
The Impact

This paper deals with the impact of internal migration flows on the earnings of male workers. The availability of jobs and income levels in sending and receiving areas also influence internal population flows. Thus, migration is an endogenous variable that cannot be simply introduced as an exogenous variable when estimating labour outcomes. A methodological approach is developed to introduce migration into our models, dealing with the issue of reverse causality between migration and earnings. We implement this strategy using the 1970–2000 Brazilian Demographic Censuses. Our findings reflect our initial hypothesis, indicating that migration flows have a negative impact on male earnings, when considering cohort size as a factor. A ten percent increase in migration rates would have reduced the wages of competing workers by up to three percent in 2000. These methodological strategies can be applied to other countries that have similar available migration data. Public policies should take into account the levels of in-and out-migration flows in specific locations, in order to stimulate economic development in these areas.

FISCAL POLICY, INSTITUTIONS AND GROWTH: NEW INSIGHTS

2016 ◽  
Vol 64 (05) ◽  
pp. 1251-1278
Author(s):  
SAIMA NAWAZ ◽  
M. IDREES KHAWAJA
Keyword(s):  
Economic Growth ◽  
Fiscal Policy ◽  
Institutional Environment ◽  
Developing Economies ◽  
Negative Impact ◽  
Positive Association ◽  
Positive Role ◽  
Full Sample ◽  
Developed Economies ◽  
The Impact

The paper attempts to analyze the impact of fiscal policy on economic growth while considering level of development and controlling for state of institutions. We extend the Solow growth model by incorporating fiscal policy and institutions through using total factor productivity. Our empirical analysis includes a panel of 56 countries. The empirics demonstrate that impact of fiscal policy on growth is statistically insignificant in the full sample. However, splitting the sample into developed and developing economies, positive association with economic growth in developed economies and negative association in developing economies observed. Our findings thus inform that fiscal policy contributes positively to growth only in developed economies. The reason for this seems to be an enabling institutional environment in developed economies. This kind of enabling institutional environment allows fiscal policy to play positive role in developed economies and absence of such environment contributes to the negative impact of fiscal policy in developing economies.

scholarly journals Exploring the link among food loss, waste and food security: what the research should focus on?

2021 ◽  
Vol 10 (1) ◽  
Author(s):  
Fabio G. Santeramo
Keyword(s):  
Food Security ◽  
Food Waste ◽  
Circular Economy ◽  
Developing Economies ◽  
Food Loss ◽  
Developed Economies ◽  
The Status ◽  
Emerging Issues ◽  
Research Agendas ◽  
The Impact

AbstractFood loss and food waste are highly debated topics and likely to stay in the research agendas for the next decades. Their relevance is not only important for developing economies, but also for developed economies, especially due to the impact that loss and waste have on the status of food security. In the present editorial, I comment on how research agendas should be shaped in order to focus on emerging issues, and put emphasis on the topics closely connected to the emerging literature on the circular economy.

scholarly journals Social Influence And Savings Behavior: Evidence From A Developing Country Context

2020 ◽  
Vol 3 (4) ◽  
pp. 56-67
Author(s):  
Eva Mpaata ◽  
Naomy Koskei ◽  
Ernest Saina
Keyword(s):  
Social Influence ◽  
Developing Country ◽  
Developing Economies ◽  
Negative Impact ◽  
Financial Education ◽  
Self Control ◽  
Developed Country ◽  
Savings Behavior ◽  
Developed Economies ◽  
The Impact

Purpose: This paper highlights the relevance of Savings Behavior and the impact of Social Influence on Savings Behavior in a developing country utilizing both life cycle and economic theories Methodology: This paper presents findings from a thorough review of the literature. Relevant articles were reviewed on both savings behavior and social influence. The articles consisted of both contexts developed versus developing. Findings: The findings suggest that from the developed country context, Social Influence positively affects Savings Behavior, which is not the case for the developing economies that show the negative impact of social influence on savings behavior. Therefore, financial education and literacy training are two of the means of encouraging individual self-control in these developing economies despite their vulnerability to social influence to encourage positive savings behavior. Implications: Individuals are encouraged to save, especially during their productive ages, along with their lifespan. This can be done by obligatory deductions for those that are officially employed. Originality/Value: This paper reveals a bibliography theoretical review on Social Influence and Savings Behavior within the developing country context. The paper presents the puzzle about the effect of Social Influence and Savings Behavior in the emerging economy. The majority of savings behavior research undertaken in the developed economies shows the positive effect of social influence on savings behavior, which is not the case in the developing economies.

scholarly journals International migration policy: from theories to implementations

2020 ◽  
Keyword(s):  
International Migration ◽  
System Analysis ◽  
Migration Policy ◽  
The United States ◽  
Policy Formation ◽  
Global Level ◽  
Global Migration ◽  
The World ◽  
Migration Flows ◽  
The Impact

The international migration policy under the conditions of migration crisis and COVID-19 pandemic is being updated both at the global level and level of national economies. Numerous international legal acts implemented by the world community since the early 1950s are further evidence that the problem of international migration is not a new, but an urgent problem that is exacerbated in the XXI century. The subject of the article is the world migration policy under the influence of the COVID-19 pandemic. The goal is to analyze the tools for regulating migration flows at the international level. Objectives: analysis of the international experience of migration policy and classification the main types of migration based on various grounds, systematization the key institutional practices of international migration regulation, assessment of the impact of the COVID-19 pandemic on international migration policy, formation the recommendations for integration of migrants into host communities of different countries. General scientific methods are used: system analysis – to determine the characteristics of global migration flows, induction and deduction – to systematize the key causes, consequences and types of international migration. The following results were obtained: current trends in global migration during 1999-2019 were analyzed, the regulatory support of migration processes at the global level was assessed, changes in remittances of migrant workers were analyzed, and the impact of the COVID-19 pandemic on international migration policy was analyzed. Conclusions: over the last 20 years, the number of international migrants has increased significantly to 271.6 million people, which is 3.5% of the world’s population; the share of migrants in the total population is highest in the UAE, Qatar, Kuwait; the most popular countries for labor migration at the beginning of 2020 are the United States, Germany and Saudi Arabia; requirements for migration policy in the XXI century are growing constantly, because of the fact that it allows to use the positive potential of migration in the interests of countries development, active international cooperation in this area, and the new challenges facing the world economy; the international migration policy is being transformed in response to the COVID-19 pandemic – many countries granting migrants a regulated status, extending their residence and work permits, providing them with access to basic health care and social security, et.

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