scholarly journals Inflation Dynamics

2021 ◽  
Author(s):  
◽  
Miles Parker
Keyword(s):  
New Zealand ◽  
Developing Economies ◽  
Large Degree ◽  
Developed Countries ◽  
Price Setting ◽  
Large Share ◽  
Price Inflation ◽  
Inflation Dynamics ◽  
The Impact ◽  
Degree Of Heterogeneity

<p>This thesis studies inflation dynamics, investigating both reasons why prices change, and why they sometimes do not. It investigates four areas that are of interest to monetary policy makers, but where our knowledge is incomplete.  The first area investigated is the causes of price stickiness at the firm level. Insight is given by a large survey of price-setting behaviour of New Zealand firms. There is a large degree of heterogeneity in price-setting practices between, and within, sectors. Explicit contracts, implicit contracts and strategic complementarity are the most widely recognised causes of price rigidity. Menu costs and sticky information are not widely recognised.  The second area investigated is how exporters price, and in particular the decisions over currency of invoice and whether to differentiate prices across markets. In sharp contrast to commonly held views, we find that primary sector firms do differentiate prices across markets. Indeed, these firms are more likely to do so in New Zealand than firms in other sectors. Larger, and more productive firms, are more likely to differentiate prices.  This thesis then studies the influence that global inflation factors have on domestic inflation. A CPI database for 223 countries and territories extends the previous research, which focuses on high income countries. Global factors explain a large share of the variance of national inflation rates in advanced countries, but not for less developed countries. More generally, global factors have greater influence in countries with higher GDP per capita, financial development and central bank transparency. Global factors explain a large share of the variance of food and energy prices but a much smaller share of the variance of other sub-components.  Finally, this thesis carries out the first systematic analysis of the impact on inflation of disasters caused by natural hazards. There is a large degree of heterogeneity, with disasters having little significant effect in advanced countries, but having effects that can persist for years in developing economies. There are also differences between types of disasters and sub-indices of inflation. Storms have a short-run impact on food price inflation that lasts for the first two quarters, before being reversed in the subsequent two. Earthquakes reduce CPI inflation excluding food, housing and energy.</p>

scholarly journals Inflation Dynamics

2021 ◽  
Author(s):  
◽  
Miles Parker
Keyword(s):  
New Zealand ◽  
Developing Economies ◽  
Large Degree ◽  
Developed Countries ◽  
Price Setting ◽  
Large Share ◽  
Price Inflation ◽  
Inflation Dynamics ◽  
The Impact ◽  
Degree Of Heterogeneity

<p>This thesis studies inflation dynamics, investigating both reasons why prices change, and why they sometimes do not. It investigates four areas that are of interest to monetary policy makers, but where our knowledge is incomplete.  The first area investigated is the causes of price stickiness at the firm level. Insight is given by a large survey of price-setting behaviour of New Zealand firms. There is a large degree of heterogeneity in price-setting practices between, and within, sectors. Explicit contracts, implicit contracts and strategic complementarity are the most widely recognised causes of price rigidity. Menu costs and sticky information are not widely recognised.  The second area investigated is how exporters price, and in particular the decisions over currency of invoice and whether to differentiate prices across markets. In sharp contrast to commonly held views, we find that primary sector firms do differentiate prices across markets. Indeed, these firms are more likely to do so in New Zealand than firms in other sectors. Larger, and more productive firms, are more likely to differentiate prices.  This thesis then studies the influence that global inflation factors have on domestic inflation. A CPI database for 223 countries and territories extends the previous research, which focuses on high income countries. Global factors explain a large share of the variance of national inflation rates in advanced countries, but not for less developed countries. More generally, global factors have greater influence in countries with higher GDP per capita, financial development and central bank transparency. Global factors explain a large share of the variance of food and energy prices but a much smaller share of the variance of other sub-components.  Finally, this thesis carries out the first systematic analysis of the impact on inflation of disasters caused by natural hazards. There is a large degree of heterogeneity, with disasters having little significant effect in advanced countries, but having effects that can persist for years in developing economies. There are also differences between types of disasters and sub-indices of inflation. Storms have a short-run impact on food price inflation that lasts for the first two quarters, before being reversed in the subsequent two. Earthquakes reduce CPI inflation excluding food, housing and energy.</p>

BUSINESS SERVICE, INTERNATIONAL OUTSOURCING, AND WAGE INEQUALITY

2018 ◽  
Vol 63 (05) ◽  
pp. 1175-1182
Author(s):  
CHU-PING LO
Keyword(s):  
Wage Inequality ◽  
Service Sector ◽  
Developing Economies ◽  
Manufacturing Sector ◽  
Developed Countries ◽  
Business Service ◽  
International Outsourcing ◽  
Business Services ◽  
Production Externalities ◽  
The Impact

This paper adds business services to Feenstra and Hanson’s (1996) model to show that if a country is more prosperous in business services, tending to carry out less international outsourcing activities than it would otherwise. In this model, the more varieties of specialized business services a country endows, the more welfare gains arise in the presence of positive production externalities to the manufacturing sector. Since developed countries are more prosperous in business service sector, this model helps to explain why the impact of opening trade on the dispersion of both wages and unemployment is stronger in developing economies.

scholarly journals Trade liberalization and trade facilitation: Two paths to one goal

2021 ◽  
Vol 12 (1) ◽  
pp. 167-183
Author(s):  
Natalia A. Vorontsova ◽  
◽  
Irina A. Klimova ◽  
Keyword(s):  
Trade Liberalization ◽  
Developing Economies ◽  
Developed Countries ◽  
Legal Regulation ◽  
Point Of View ◽  
Least Developed Countries ◽  
Trade Facilitation ◽  
Trade Relations ◽  
Long Run ◽  
The Impact

The article defines trade liberalization and trade facilitation, highlighting their characteristics, some of which are inherent to both processes, while others differ. The authors analyze the impact of transborder production in a number of South-East Asian states on the development of their economies, as well as the role of trade facilitation in these processes. The article dwells on the economic impact of trade liberalization and facilitation, their synergistic interaction and peculiarities from the point of view of legal regulation. The authors come to the conclusion that trade liberalization and facilitation generally aim to achieve a common goal of promoting world trade, which in the long run will help to address one of the global problems — an immense wealth gap between developed and least developed countries. To achieve this goal, both liberalization and trade facilitation use their own tools, a set of practical measures enshrined in international legal instruments. At the same time, implementation of these measures often involves major risks, especially for developing economies. As a result, a strategy for implementing trade liberalization and facilitation measures needs to be developed, which would define the sequence of steps for each state individually and would take into account all the potential difficulties that a state may have while opening up the market. It is also necessary to create and improve the relevant regulatory and institutional framework for trade relations and implementation of reforms.

scholarly journals Effectiveness of Central Bank Independence via Its Internal Characteristics

2011 ◽  
Author(s):  
Caroll H. Griffin
Keyword(s):  
Central Bank ◽  
Informal Economy ◽  
Developing Economies ◽  
Developed Countries ◽  
Central Banks ◽  
Central Bank Independence ◽  
Reserve Requirements ◽  
Formal Economy ◽  
The Impact ◽  
Macroeconomic Environment

This study examines central bank independence in developing countries of Latin America and Asia as well as selected developed countries. Many countries around the world, both developed and developing, have accepted the idea of central bank independence over the last several decades, so central banks have autonomy. A majority of studies has examined primarily the impact of central bank independence on inflation as promoting the theoretical benefits of a more stable and prosperous macroeconomic environment. However, there is only now sufficient data to empirically determine whether these claims are true. This research attempts to answer why developing economies with an informal sector resort to inflationary measures to finance their activities; how does a government induce an agent to choose the formal economy. In the trade-off between inflation and reserve requirements, the optimal policy is maximum inflation and minimum reserve requirements as increasing the steady-state utility of an optimizing agent. Also agents prefer the informal economy if policy relies on a maximum reserve requirement.  

Servitization impact on performance moderated by country development

2019 ◽  
Vol 27 (1) ◽  
pp. 302-318 ◽  
Author(s):  
Renata Moreno ◽  
Leonardo Marques ◽  
Rebecca Arkader
Keyword(s):  
Developing Countries ◽  
Firm Performance ◽  
Social Impact ◽  
Developing Economies ◽  
Developed Countries ◽  
Content Type ◽  
Advanced Economies ◽  
Medium Level ◽  
And Performance ◽  
The Impact

Purpose In recent years, “servitization” has been studied extensively; however, as studies of the impact of servitization on firm performance offer mixed results, the conditions under which the relationship between servitization and performance becomes more significant are contested in the literature. These mixed results have led to the term “service paradox.” The paper aims to discuss these issues. Design/methodology/approach This study investigates servitization in the assembly industry based on a multi-country survey covering 539 industry plants in 22 countries. Findings The study contributes to the research on servitization by adding a contextual perspective to this relationship, taking into account level of development of the country in which a firm is located. Besides confirming the correlation between the servitization and performance, our study unveils a counter-intuitive result: a medium level of development of the country in which a firm is based corresponds to a stronger relationship between servitization and firm performance, whereas higher levels of development seem to diminish the increase in performance. Social implications This study balances out the focus in servitization on advanced economies and help to unveil its benefits in developing countries. Fostering servitization in developing economies can lead to social impact resulting from job shifts from manufacturing to service and the correlated implications for workers’ training and higher motivation experienced in service-based jobs. Originality/value Our study unpacks the “service paradox” and indicates that industry plants in developing countries can still harness the benefits of being first-movers, whereas, in developed countries, servitization may have become an order qualifier rather than a factor of differentiation.

scholarly journals IMPACT OF CURRENT ACCOUNT GAPS ON INFLATION IN SOUTH ASIAN COUNTRIES

2021 ◽  
Vol 9 (3) ◽  
pp. 1056-1062
Author(s):  
Sardar Shakeel Ahmad ◽  
Atif Ali Jaffri ◽  
Faisal Rana ◽  
Asadullah Khan
Keyword(s):  
Time Series ◽  
South Asian ◽  
Current Account ◽  
Inflation Rate ◽  
Developed Countries ◽  
Least Square ◽  
Series Data ◽  
Asian Countries ◽  
Price Inflation ◽  
The Impact

Purpose of the study: The current study estimated the impact of current account gaps (CAGAP) on inflation in South Asian countries, namely, Pakistan, Bangladesh, India, Nepal, and Sri Lanka. Methodology: CAGAP is estimated through macroeconomic fundamentals by applying panel time series data methodology from 1990 to 2018. We adopted the bias-corrected least square dummy variable (LSDVC) estimation technique for the time series macro and dynamic panel to find the impact of CAGAP on inflation. Principal findings: CAGAP negatively affected consumer price inflation rate while Lag of inflation, trade openness, age dependency, and oil prices positively affected inflation rate in the selected sample countries. In LSDVC, the Blundell and Bond (BB), Arellano-Bond (AB), Anderson and Hsiao (AH) estimates are determined while system and difference GMM estimates also confirmed the results. Therefore, LSDVC-AB is selected from the three versions of LSDVC as baseline regression based on higher significance and lower standard error. Applications of the Study: CAGAP affects inflation, so it should be estimated annually in all these countries for macroeconomic stability as IMF annually estimates for developed countries in an external sector report. It is worthwhile to estimate CAN regularly and watch it for CAB evaluation and future Adjustment. Based on the results, the study recommends that tailored policies and interventions focus on the structural distortions and slow-changing factors to eradicate CAGAP. Novelty/ Originality of the Study: A few empirical studies have scrutinized the role of CAB on macroeconomic variables. No empirical study on CAGAP and its consequences are available in the selected region's existing literature to the best of our knowledge.

Clusters and Innovations in the Subjects of RF: The Results of Empirical Study

2011 ◽  
pp. 93-107
Author(s):  
E. Kutsenko ◽  
D. Tyumentseva
Keyword(s):  
Empirical Study ◽  
Developing Economies ◽  
Cluster Formation ◽  
Developed Countries ◽  
Theoretical Justification ◽  
The Us ◽  
Modern Economic ◽  
The Russian Federation ◽  
Innovation Rate ◽  
The Impact

According to the modern economic theory one of the most important factors of increasing the rate of innovations is cluster formation. Studies undertaken in the US and Europe confirm the significance of this factor. Nevertheless, it is unclear, to which extent the regularities observed in developed countries can be applied to transition and developing economies. This paper is dedicated to theoretical justification and empirical study of the impact of clusters on the innovation rate in the regions of the Russian Federation.

scholarly journals The effectiveness of the inflation targeting regime as the basis for monetary policy in the conditions of crisis in the economy

2021 ◽  
pp. 20
Author(s):  
Oleksandr Dziubliuk
Keyword(s):  
Monetary Policy ◽  
Central Bank ◽  
Large Scale ◽  
Inflation Targeting ◽  
Developing Economies ◽  
Developed Countries ◽  
Gradual Transition ◽  
Monetary Regime ◽  
Low Efficiency ◽  
The Impact

Introduction. Inflation targeting, as a commitment by the central bank to adhere to quantitative inflation rates, has become a fairly common monetary regime in the last few decades in developed countries and developing economies. However, the impact of the pandemic crisis on the course of economic processes has revealed serious problems associated with the low efficiency of this regime. Therefore, there is an objective need to re-evaluate the system in which the central bank focuses monetary regulation solely on price stability, ignoring other strategic directions of government policy related to the need to save economic activity and prevent a large-scale recession.Purpose. Clarification of the peculiarities of the implementation of monetary policy on the basis of the inflation targeting regime and identification of problematic aspects of this regime in the conditions of external shocks and the unfolding economic crisis.Methods. General scientific and empirical techniques and tools of economics, methods of analysis and synthesis, comparison, compilation and grouping are used.Results. The crisis indicates the need to build a monetary regime that would meet the interests of sustainable economic growth and social welfare. In Ukraine, there were no proper initial preconditions for the inflation targeting regime implementation. Therefore, adjusting the priorities of monetary policy in the crisis should reflect the gradual transition to a more flexible regime using monetary methods to support households and businesses, promote job creation, and stimulate aggregate demand.Prospects. Research of ways to increase the level of flexibility of monetary regulation, opportunities to expand the mandate of the central bank and improve the choice of optimal areas of influence on the economy with the help of monetary instruments at its disposal.

scholarly journals Corporate social reporting in Libya: a research note

2015 ◽  
Vol 11 (4) ◽  
pp. 923-932 ◽  
Author(s):  
Mahmoud Elmogla ◽  
Christopher J. Cowton ◽  
Yvonne Downs
Keyword(s):  
Social Responsibility ◽  
Developing Economies ◽  
Developed Countries ◽  
Social Reporting ◽  
Annual Reports ◽  
Content Type ◽  
Corporate Social Reporting ◽  
Corporate Social ◽  
The Impact ◽  
Point Of Departure

Purpose – This purpose of this paper is to add strength and depth to the few other studies that take Libya as a point of departure to understanding the dynamic between disclosure practices and the context in which they are performed. Not enough is known about social accounting disclosure practices in developing countries. Design/methodology/approach – A sample of 270 annual reports from 54 companies, both public and private, across a range of sectors and covering a five-year period (2001-2005) was analysed using content analysis to ascertain patterns and trends in corporate social reporting by Libyan companies. Findings – Libyan companies generally disclose some information related to social responsibility but at a low level compared with developed countries and only in certain areas. This situation changed little over the five-year period under scrutiny. Research limitations/implications – During the five-year period examined, corporate social responsibility remained largely unresponsive to significant changes in the political scene that occurred over a much longer period of time. This suggests that further research is needed to illuminate the role and influence of societal culture and to understand the impact of organisational subculture on disclosure and responsibility practices. Originality/value – Libya provides a point of departure for further research into other transitioning or developing economies, particularly those in the Arab world. It also offers unique insights and the possibility for comparative studies between them due to its particular character. This note augments and adds depth to other studies in the area.

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