scholarly journals Trade, Environment, Human Capital and Services Sector in Developing Countries: A Panel Data Analysis

2021 ◽  
Vol 7 (3) ◽  
Author(s):  
Ismat Nasim ◽  
Imran Sharif Chaudhry ◽  
Fatima Farooq ◽  
Furrukh Bashir
Keyword(s):  
Carbon Dioxide ◽  
Developing Countries ◽  
Human Capital ◽  
Panel Data ◽  
Trade Liberalization ◽  
Unit Root ◽  
Trade Openness ◽  
Carbon Dioxide Emission ◽  
Value Addition ◽  
Services Sector

This study aims to examine the influence of Trade Liberalization, Environmental Quality (CO2 Emission) on Services Sector Growth in some selected developing. The estimation of the study considers panel data unit root and panel data ARDL approach. The environmental quality is represented by Carbon Dioxide Emission and trade liberalization is by trade openness. The results of Panel Unit Root test summarize that Panel ARDL is the most appropriate method of estimation for having Panel Coefficient values due to mixed order of integration for developing countries. The empirical findings of model, in Developing Countries, Labor Force, Capital Stock, Trade Openness, Money Supply, Government Expenditure and Human Capital exert upward pressure on Services Value Addition while Carbon Dioxide Emission and Price Level is putting download pressure on Services Value Addition.

Determinants of Industrial Development

2021 ◽  
pp. 378-406
Author(s):  
Fiona Tregenna ◽  
Kevin Nell ◽  
Chris Callaghan
Keyword(s):  
Developing Countries ◽  
Human Capital ◽  
Exchange Rate ◽  
Panel Data ◽  
Industrial Development ◽  
Trade Openness ◽  
Developed Countries ◽  
Government Consumption ◽  
Capital Account Liberalization ◽  
Exchange Rate Depreciation

Global evidence suggests that, for many countries, manufacturing typically has an inverted U-shaped relationship with development. But unlike the historical experience of most developed countries, for most developing countries the turning point of this relationship is occurring sooner in the development process, and at substantially lower levels of income. This is termed ‘premature deindustrialization’. The consequences of this may be particularly important if such countries can no longer rely on manufacturing-led development. Why are some countries more industrialized, or more deindustrialized, than other comparable countries? To explore these issues, this chapter uses panel-data econometric techniques to analyse the determinants of the share of manufacturing in GDP, across countries and across time. Domestic determinants include investment, government consumption, population size, human capital, democracy, and natural resource endowments. External determinants include trade openness, capital account liberalization, and exchange rate depreciation.

scholarly journals The Role of Trade Liberalization in Carbon Dioxide Emission: Evidence From Heterogeneous Panel Estimations

2019 ◽  
Vol 10 (5) ◽  
pp. 228
Author(s):  
Gholamreza Zandi ◽  
Muhammad Haseeb
Keyword(s):  
Carbon Dioxide ◽  
Developing Countries ◽  
Renewable Energy ◽  
Trade Liberalization ◽  
Causal Relationship ◽  
Environmental Degradation ◽  
Carbon Dioxide Emission ◽  
Energy Utilization ◽  
Long Run ◽  
Heterogeneous Panel

In the present globalized world, production forms are progressively divided across nations. Consequently, domestic consumption in one nation is progressively fulfilled by worldwide supply chains. This spectacle has pulled policy and widespread intellectual discussions on the assignment of greenhouse gas (GHG) emanations, especially carbon dioxide (CO2) emission; these are accountabilities connected to global trade since worldwide trade causes net carbon dioxide emission. The aim of the present study is to examine the impact of trade liberalization on carbon dioxide emission. We used the panel data of 105 developed and developing countries from 1990 to 2017. The results of FMOLS and DOLS confirm that all variables are connected in the long-run period. The results of long run coefficient confirm that that the trade liberalization has a positive effect on environmental degradation and cause to increase environmental degradation. Likewise, economic growth and energy consumption has also a positive and significant impact on environmental degradation. However, we find an evidence of negative and significant impact of renewable energy utilization on environmental degradation. Finally, the results of heterogeneous panel causality confirm that there is a uni-directional causal relationship between trade liberalization and environmental degradation where causality is running from trade liberalization to environmental degradation. However, we find a bi-directional causal relationship of environmental degradation with energy utilization and renewable energy utilization in all selected developed and developing countries.

scholarly journals DOES OPENNESS REDUCE WAGE INEQUALITY IN DEVELOPING COUNTRIES? PANEL DATA EVIDENCE FROM BANGLADESH

2012 ◽  
Vol 57 (02) ◽  
pp. 1250012 ◽  
Author(s):  
FARZANA MUNSHI
Keyword(s):  
Developing Countries ◽  
Panel Data ◽  
Theoretical Prediction ◽  
Trade Liberalization ◽  
Dynamic Model ◽  
Wage Inequality ◽  
Manufacturing Industries ◽  
Openness To Trade

This paper provides panel data evidence on trade liberalization and wage inequality in Bangladesh. Estimates from a dynamic model for five major manufacturing industries spanning the 1975–2002 period suggest that the effect of increased openness to trade is associated with a decrease in wage inequality. The result is in line with the theoretical prediction in that greater openness is expected to reduce wage inequality in developing countries.

scholarly journals Impact of Trade Liberalization on Economic Growth of Nepal

2019 ◽  
Vol 8 ◽  
pp. 136-148
Author(s):  
Ramesh Bahadur Khadka
Keyword(s):  
Economic Growth ◽  
Developing Countries ◽  
Gross Domestic Product ◽  
Trade Liberalization ◽  
World Bank ◽  
Trade Balance ◽  
Trade Openness ◽  
Domestic Product ◽  
Total Trade ◽  
The Impact

Trade openness has been considered as an important determinant of economic growth. It has been witnessed during the past couple of decades that international trade openness has played a significant role in the growth process of both developed and developing countries. International organizations such as Word Trade Organization, International Monetary Fund and World Bank are constantly advising, especially developing countries, to speed up the process of trade liberalization to achieve high economic growth. In this context, this paper aims to analyze the impact of trade liberalization on economic growth of Nepal. For this purpose, all the data regarding gross domestic product, export, import, total trade, trade balance of Nepal from 1980 A.D. to 2013 A.D. published by World Bank (2014) were used. Both descriptive as well as inferential statistics were used to analyze the data. Correlation analysis was used to find the correlation between the selected variables. Multiple linear regression analysis was carried out to analyze the impact of the trade liberalization in economic growth of Nepal. Trade cost does not explain any influence in gross domestic product, export, import, total trade and trade balance. The impact of trade openness is positive for all variables except trade balance. Trade openness has influenced economy significantly; import increased with purchasing power, export also increased but service only. Therefore, there is gap in export and imports.

Determinants of FDI in developed and developing countries: a quantitative analysis using GMM

2018 ◽  
Vol 45 (2) ◽  
pp. 348-382 ◽  
Author(s):  
Neha Saini ◽  
Monica Singhania
Keyword(s):  
Developing Countries ◽  
Panel Data ◽  
Multinational Corporations ◽  
Management Practices ◽  
Panel Data Analysis ◽  
Random Effect ◽  
Trade Openness ◽  
Content Type ◽  
Generalized Moments ◽  
Determinants Of Fdi

PurposeThe purpose of this paper is to investigate the potential determinants of FDI, in developed and developing countries.Design/methodology/approachThis paper investigates FDI determinants based on panel data analysis using static and dynamic modeling for 20 countries (11 developed and 9 developing), over the period 2004-2013. For static model estimations, Hausman (1978) test indicates the applicability of fixed effect/random effect, while generalized moments of methods (GMM) (dynamic model) is used to capture endogeneity and unobserved heterogeneity.FindingsThe outcome across different countries depicts diverse results. In developed countries, FDI seeks policy-related determinants (GDP growth, trade openness, and freedom index), and in developing country FDI showed positive association for economic determinants (gross fixed capital formulation (GFCF), trade openness, and efficiency variables).Research limitations/implicationsThe destination of FDI is limited to 20 countries in the present paper. The indicator of the institutional environment, namely economic freedom index, used in this paper has received some criticism in calculations.Practical implicationsThe paper enlists recommendations for future FDI policies and may assist government in providing a tactical framework for skill development, thereby increasing manufacturing growth rate. The paper also throws light on vertical and horizontal capital inflows considering resource, strategy, and market-seeking FDI.Social implicationsFDI may bring significant benefits by creating high-quality jobs, introducing modern production and management practices. It highlights how multinational corporations and government contribute to better working conditions in host countries.Originality/valueThe paper uncovers important features like macroeconomic variables, especially country-wise efficiency scores, policy variables, GFCF, and freedom index, for determining FDI inflows in 20 countries using panel data methods and provides a roadmap for developed and developing countries. The study highlights endogeneity and unobserved heteroscedasticity by applying GMM one- and two-step procedure.

scholarly journals The Dynamic Effects of Innovation, FDI, & Trade Liberalization on Services Sector: An Evidence from Developed and Developing Economies

2020 ◽  
Vol 8 (2) ◽  
pp. 116-132
Author(s):  
Muhammad Chishti ◽  
◽  
Farrukh Mehmood ◽  
Keyword(s):  
Trade Liberalization ◽  
Developing Economies ◽  
Trade Openness ◽  
Dynamic Panel Data ◽  
Dynamic Effects ◽  
Services Sector ◽  
Panel Data Estimation ◽  
Productivity Differential ◽  
Data Estimation

The current study is a bid to explore the dynamic effects of Innovation, FDI, and trade openness on services sector in selected developed and developing economies for the period of 1992 to 2016. For computing the empirical findings, this study deploys the static as we all dynamic panel data estimation approaches. The results reveal the significant role of GDP per capita and FDI in the growth of services sector. However, the services sector incurs the detrimental repercussions on the account of trade liberalization. These findings also demonstrate that, in both samples of economies, the services sector does not respond to the productivity differential. Furthermore, innovation exhibits a significant association with the growth of services sector in the case of developing economies.

scholarly journals Impacto del comercio y el transporte internacional sobre la calidad ambiental: un estudio en países de América Latina y el Caribe

2018 ◽  
Vol 18 (1) ◽  
pp. 49
Author(s):  
Christian Martín García
Keyword(s):  
Carbon Dioxide ◽  
Latin America ◽  
Trade Liberalization ◽  
Trade Openness ◽  
High Income ◽  
International Transport ◽  
The Caribbean ◽  
America Latina

<p>This paper explores the effect of trade liberalization and international transport on carbon dioxide (CO<sub>2</sub>) emissions in 18 countries of Latin America and the Caribbean for the period 1995-2013. The results indicate that an increase in the levels of trade openness has a greater effect for high-income countries (0.17 %) than for the others (0.067 %). While it is observed that an increase of 1 % in the tons transported per kilometer increases CO<sub>2</sub> emissions by 0.022 % (high-income countries) and by 0.014 % (middle-high income countries).</p>

scholarly journals The Linkage Among Sea Transport, Trade Liberalization and Industrial Development in the Context of CO2: An Empirical Investigation From China

2021 ◽  
Vol 9 ◽  
Author(s):  
Salih Kalaycı ◽  
Cihan Özden
Keyword(s):  
Carbon Dioxide ◽  
Trade Liberalization ◽  
Industrial Development ◽  
Carbon Dioxide Emission ◽  
Least Square ◽  
Ordinary Least Square ◽  
Distributed Lag ◽  
Autoregressive Distributed Lag ◽  
Sea Transportation ◽  
Bound Test

The major goal of this paper is to focus on the linkage between sea transportation, trade liberalization and industrial development in the context of carbon dioxide emission. With this respect, it is attempted to analyze the effects of independent variables on the dependent variable carbon dioxide emission for China by using annual data ranging from 1960 to 2019 with the help of econometric methods such as fully modified least square, dynamic ordinary least square, canonical co-integrating regression, autoregressive distributed lag bound test and generalized moments method. According to the results of fully modified least square, dynamic ordinary least square and canonical co-integrating regression models, there is a significant long-term relationship between sea transportation, trade liberalization, industrial development and carbon dioxide emissions. On the other hand, short term autoregressive distributed lag bound test estimation results reveal that the main determinants of carbon dioxide emission in the short-run are industrial development and sea transportation. The empirical tests reveal important results for policy-makers in China.

Productive Contribution of Public Spending and Human Capital in Developing Countries Revisited: The Role of Trade Openness

2021 ◽  
pp. 001573252110454
Author(s):  
Thanh Dinh Su ◽  
Canh Phuc Nguyen
Keyword(s):  
Developing Countries ◽  
Human Capital ◽  
Trade Openness ◽  
Public Spending ◽  
Factor Productivity ◽  
Jel Codes ◽  
Tfp Growth ◽  
Negative Factor ◽  
Catalytic Role

This study examines the catalytic role of trade openness in the relationships between human capital and public spending and total factor productivity (TFP) growth in 44 developing countries over the 1980–2014 period. Applying various estimation techniques to deal with autocorrelation, heteroscedasticity and cross-section dependence, the study finds that (a) the effect of human capital on TFP is nonlinear, (b) government consumption positively affects TFP but military spending is a negative factor and (c) trade openness significantly improves the positive influences of these factors on TFP. The results imply the important role of trade liberalisation in productivity evolution in developing countries. JEL Codes: F43, H52, O47

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