scholarly journals Effect of 1972 Devaluation on Pakistan's Balance of Trade

1975 ◽  
Vol 14 (1) ◽  
pp. 1-22
Author(s):  
A. R. Kemal ◽  
Zahira Alvie
Keyword(s):  
Developing Countries ◽  
Industrial Structure ◽  
Developing Economies ◽  
Exchange Rate Regime ◽  
Developed Countries ◽  
World Market ◽  
The Other ◽  
Beneficial Effects ◽  
Other Hand ◽  
Long Run

In most of the developing economies, a rapid growth of G.N.P. invariably implies a larger import bill. Capital goods necessary for development have to be imported and a higher level of income in turn implies an increase in the import of consumption goods. On the other hand, demand for primary goods, which are main exports of developing countries, is inelastic. Moreover, the develop¬ing countries face serious problems in selling their manufactured products in the world market, partly due to their relatively inefficient industrial structure and partly due to the restrictive import policies of the developed countries. This results in a deficit in the balance of payments of many developing countries. To meet the deficit, import restrictions and export encouragement policies are followed instead of devaluation, which is resisted on both economic and non- economic grounds. This study has as its objective an analysis of the effects of the: devaluation of Pakistani rupee in May 1972, which changed the par value of Pakistan's rupee from Rs. 4.76 to Rs. 11.00 per U.S. dollar. Prior to the 1972 devaluation, imports were restricted through tariffs and quotas. In addition, certain pro¬ducts could be imported only under bonus and cash-cum-bonus lists. On the other hand, exports were encouraged through Export Bonus Scheme, Pay-As- You-Earn Scheme, and similar other incentives. These measures led to a multiple exchange rate regime. These measures may have had some beneficial effects in the short run but as Soligo and Stern [26] have shown over the long run, they led to a misallocation of resources. Pakistan devalued her currency in May 1972, as stated by the then Minister of Finance in his speech, to end the flow of foreign exchange abroad, stop over invoicing of imports and under invoicing of exports, correct the misallocation of resources, curb uneconomic import

scholarly journals Why is inflation targeting adopted?

2020 ◽  
Vol 12 (1) ◽  
pp. 56
Author(s):  
Yutaka Kurihara
Keyword(s):  
Developing Countries ◽  
Exchange Rate ◽  
Central Bank ◽  
Inflation Targeting ◽  
Developed Countries ◽  
The Other ◽  
Other Hand ◽  
Central Bank Credibility

Since the early 1990s, inflation targeting (IT) has been conducted in many countries and the number of the countries has been increasing rapidly. The outcomes of adopting IT has been discussed, however, the incentives of adopting IT is not fully examined. This study focuses on this issue empirically. The results are clearly divided into two types of countries. In developed countries, budget/GDP ratio, central bank credibility, exchange rate stability, and openness of the economy are deterministic elements of adopting IT, however interestingly, inflation itself does not play any roles of adopting IT. On the other hand, only inflation is the deterministic element of adopting IT in developing countries. Other elements, that are deterministic elements in developed countries, do not any effects on introducing IT. Moreover, countries would not like to limit the scope of policies when the economy’s openness is high.

Persistence of profitability in top firms: does it vary across sectors?

2020 ◽  
Vol 30 (3) ◽  
pp. 269-287
Author(s):  
Parneet Kaur Bhangu
Keyword(s):  
Health Care ◽  
Developing Countries ◽  
Developing Economies ◽  
Developed Countries ◽  
Economic Sectors ◽  
Data Set ◽  
Content Type ◽  
Mean Values ◽  
Long Run ◽  
Short Run

Purpose The purpose of this paper is to analyze variations in the degree of persistence of profitability across diverse economic sectors and industry groups over the time period of 1990-2014 for a sample of top publically listed firms belonging to a selected set of developed and developing economies. Design/methodology/approach Degree of profit persistence has been estimated using Mueller’s (1990) autoregressive methodology. Firms were classified into different economic sectors and industry groups as per the Global Industry Classification Standard (GICS). The examination of inter-sectoral variations in profit persistence has been performed by comparing mean values of estimated short-run and long-run profit persistence parameter for all firms and between firms belonging to the developed and developing countries, respectively. Findings Firms in consumer staples, consumer discretionary and health care enjoy persistent above the norm returns, unlike firms in traditional industries, utilities and energy sectors, which are characterized by low persistence and below the norm returns. A high degree of profit persistence is observed in health care and idea- and technology-intensive sector in the developed countries; however, in the developing countries, profits persist higher in consumer discretionary and capital-intensive telecommunication services sectors. Originality/value The study provides a holistic examination of inter-sectoral variations in profit persistence of top firms in developed and developing economies using a uniform methodology and data set. It can serve as an aid to the competition commissions and anti-trust regulatory authorities to formulate policies for curtailing anti-competitive activities in certain sectors.

Comparative Public Finance Approaches to Natural Hazards Management

2021 ◽  
Author(s):  
Mohammed Alkhurayyif ◽  
Julie Winkler ◽  
Simon Andrew ◽  
Skip Krueger
Keyword(s):  
Developing Countries ◽  
Economic Impact ◽  
Natural Hazards ◽  
Natural Hazard ◽  
Developing Economies ◽  
The United States ◽  
The Other ◽  
Economic Damage ◽  
Economic Output ◽  
Other Hand

An important challenge of natural hazards is that they inflict the greatest total economic damage in large, developed countries, where wealth is aggregated, but they create the greatest economic impact in smaller and developing countries, where a disaster caused by a natural hazard can easily overwhelm a national government’s ability to respond and its economy to recover. Thus, a common understanding in the literature is that the fiscal effect of a natural hazard is a function of the size of the disaster relative to the size of a nation’s economy at the time of the disaster. At the international level, the economic impact of disasters, for example, has been estimated to be US$2.9 trillion between 1998 and 2017, and approximately $945 billion of that occurred in the United States. With a 2019 gross domestic product (GDP) of $21 trillion, the total economic effect for those 20 years is close to 5% of the value of economic output for a single year. Developing country losses, on the other hand, can be overwhelming, especially as measured against the size of the economy. For example, Hurricane Maria’s impact on Dominica is estimated to have been approximately US$1.37 billion, which was equivalent to 225% of Dominica’s GDP. While an appreciation for the connection between the size of a national economy and natural hazards is clearly critical, the literature points to a number of additional factors that are important to understand about how government financial conditions are affected by natural hazards and vice versa. Debates continue about the role of foreign direct investment, government and private debt levels, investments in education, and internationally sponsored protective actions and insurance pools in improving the resilience of smaller and developing countries to disasters. For example, structural approaches to understanding the linkage between disasters and economic development suggest that countries with a limited number of sources of income have economies that are more vulnerable to disasters than more diversified economies, which might suggest that fiscal policies designed to increase economic diversity are important. Neoclassical approaches, on the other hand, argue that economic recovery is slowed by government intervention in the economy, and suggest that the best way for developing economies to recovery quickly is to reduce the amount of regulation in the economy. Whatever the theoretical approach, what remains most clear is the ongoing challenge of decoupling the emotional need to participate in responses to the human tragedy associated with disasters caused by natural hazards from the strategic imperative to invest in hazard mitigation at much higher rates globally and plan toward disaster risk reduction.

scholarly journals Urgency of Licensing Restriction in Joint Venture Companies Related to TKDN

2019 ◽  
Vol 3 (1) ◽  
pp. 1-7
Author(s):  
Toebagus Galang Windi Pratama
Keyword(s):  
Developing Countries ◽  
Technology Transfer ◽  
Joint Venture ◽  
Free Market ◽  
Legal Protection ◽  
Developed Countries ◽  
The State ◽  
The Other ◽  
Global Era ◽  
Other Hand

Most companies that market their products in Indonesia in order to pass TKDN using the concept of Joint Venture agreements (PMA) often the parties working together are unbalanced in real terms the shares of foreign owners are greater than domestic shareholders. In such conditions the strong parties tend to impose their will on the weaker party. Therefore, according to the principle of freedom of contact in relation to the free market, in fully contracting is an affair of the parties, however legal protection and public interest are therefore required from government interference in the form of regulation or restrictions. The restrictions in regulating technology transfer from developed countries to developing countries aim to protect the interests of countries that divert technology because the inventor of the technology is considered to have made maximum efforts to find related technology but on the other hand the state is also obliged to protect and improve the welfare of its citizens from that, restrictions on patent licenses are needed so that the TKD is truly "real" and does not reduce the incoming FDI.Based on this, the authors formulated a number of issues namely: Why are restrictions on patent licenses needed and What are the legal consequences of limiting patent licenses . The results of the discussion show that the transfer of technology is needed for developing countries needed to advance their products in the era of globalization so that arrangements for it are needed so that in case of cooperation there is no inequality. And, the role of law in the policy of technology transfer to transform agrarian societies into industrialist societies. Here there is a dilemmatic situation on the one hand the acceleration of mastery of technology including the acceleration of development needs to be done by being open to the owners of capital and technology (which generally comes from developed countries), while on the other hand we still have to maintain national interests. Here is related to the authority of the state to regulate the process of technology transfer. In this global era, after the WTO agreement was reached, which was linked to 2 (two) technology transfer agendas, namely TRIMS and TRIPS. Foreign technology protection was very much needed in the context of foreign investment.

Inequality, Redistribution, and Growth in Developed Countries

2018 ◽  
Vol 64 (4) ◽  
pp. 297-323
Author(s):  
Andrea Festa
Keyword(s):  
Population Growth ◽  
Fixed Effects ◽  
Developed Countries ◽  
Oecd Countries ◽  
The Other ◽  
Aggregate Output ◽  
Other Hand ◽  
Long Run ◽  
Short Run ◽  
Jel Classifications

Abstract This paper examines the effect of inequality and redistribution on growth in a panel of developed OECD countries with dynamic fixed effects (DFE) estimates. It is found out that redistribution is neutral to growth while disposable inequality is weakly positive for long-run aggregate output. Population growth is also a determinant of aggregate output. On the other hand, the analysis does not find evidence of a significant effect of both inequality and redistribution in the short-run as well as of top and bottom inequality. The analysis suggests that in economies that are more unequal a win-win process to increase equality and growth through redistributive taxes is likely to be effective, even if the overall effect is low and time demanding. JEL classifications: O11, O15, O47, E62, H23 Keywords: Inequality, Redistribution, Growth

scholarly journals Dynamic Causal Relationships among GDP, Exports, and Foreign Direct Investment (FDI) in the Developing Countries

2013 ◽  
Vol 14 ◽  
pp. 1-19 ◽  
Author(s):  
Mohsen Mehrara ◽  
Amin Haghnejad ◽  
Jalal Dehnavi ◽  
Fereshteh Jandaghi Meybodi
Keyword(s):  
Economic Growth ◽  
Developing Countries ◽  
Foreign Direct Investment ◽  
Strong Evidence ◽  
Direct Investment ◽  
The Other ◽  
Fdi Inflows ◽  
Long Run ◽  
Short Run ◽  
Growth Hypothesis

Using panel techniques, this paper estimates the causality among economic growth, exports, and Foreign Direct Investment (FDI) inflows for developing countries over the period of 1980 to 2008. The study indicates that; firstly, there is strong evidence of bidirectional causality between economic growth and FDI inflows. Secondly, the exports-led growth hypothesis is supported by the finding of unidirectional causality running from exports to economic growth in both the short-run and the long-run. Thirdly, export is not Granger caused by economic growth and FDI inflow in either the short run or the long run. On the basis of the obtained results, it is recommended that outward-oriented strategies and policies of attracting FDI be pursued by developing countries to achieve higher rates of economic growth. On the other hand, the countries can increase FDI inflows by stimulating their economic growth.

scholarly journals Relative Earnings and Manpower Allocation in Developing Economies

1969 ◽  
Vol 9 (1) ◽  
pp. 14-34 ◽  
Author(s):  
Lloyd G. Reynolds
Keyword(s):  
Economic Growth ◽  
Subject Matter ◽  
Structural Changes ◽  
Developing Economies ◽  
Developed Countries ◽  
The Other ◽  
Labour Economics ◽  
Economic Behaviour ◽  
Agriculture Industry ◽  
Starting Point

The less developed countries (LDC) present two kinds of challenge to economists. First, they invite us to develop hypotheses about how economic growth begins and about structural changes during the early decades of growth. Second, they provide a fresh terrain on which specialists in particular subject-matter areas can test accepted notions about economic behaviour. For investigations in labour economics, the structure of earnings provides a convenient starting point. (It is best to say "earnings" rather than "wages" because most workers in the LDC's are self-emplqyed.) Analysis of earnings requires an examination of manpower supplies and requirements. This leads into the economics of agriculture, industry, government, and other labour demanding sectors on one side, and into a study of education and other skill-producing agencies, on the other. Thus by starting with the earnings structure, one is led rather directly into the heart of the economy.

scholarly journals Digital Service Taxes and Their Application

2021 ◽  
Author(s):  
Megersa Kelbesa
Keyword(s):  
Developing Countries ◽  
Economic Impact ◽  
Developing Economies ◽  
Cost Benefit Analysis ◽  
Cost Benefit ◽  
Developed Countries ◽  
Evidence Base ◽  
Digital Economy ◽  
Economic Activities ◽  
Digital Service

Many developing economies have seen a rise in e-commerce activity within their borders, and a decline in income from traditional industries as a result of COVID-19, meaning the digital economy offers a potentially unexploited source of tax revenue. . As a result, more developing countries may soon begin adopting some sort of digital tax. The economic activities which may be subject to the Digital Services Tax (DST) may vary from country to country. It will, therefore, be necessary for businesses operating in multiple jurisdictions across developing countries to keep up with the changes in digital taxes. Before implementing a DST scheme, developing countries are advised to perform an in-depth cost-benefit analysis and due considerations. Some developing (and several developed) countries have already unilaterally implemented a “provisional” DST system. Other developing countries are on the process of implementing DST or have simply announced that they will implement a DST soon. Although most of the countries so far actively working on DST (are rich countries, a growing list of developing countries are joining the process. Some examples include the following: Malaysia, Indonesia, Kenya, Nigeria, Argentina and, Chile. It is important to mention that the literature on DST is very limited – although growing, and the evidence base around the economic impacts is particularly scarce. This is partly due to the quite recent nature of DST implementation. The evidence is even scarcer for developing countries – Due to these limitations, this rapid evidence review looks at different types of available literature – including reports and blogs issued by international financial institutions and development agencies. The rest of the report will give an overview of key proposed approaches to tax the digital economy, provide a very brief account of the economic impact of DST, provide a brief mapping of the implementation of digital service taxes in developing countries, provide a brief description of each DST system and about the economic impact of the DST, finally a brief account or attributes of a “good” DST system.

Enterprise 2.0 Impact on Company Performance in Developing Countries

2012 ◽  
pp. 172-197 ◽  
Author(s):  
Jacques Bughin
Keyword(s):  
Developing Countries ◽  
Developing Economies ◽  
Developed Countries ◽  
Company Performance ◽  
Enterprise 2.0 ◽  
Global Survey ◽  
Social Technologies

This chapter draws on findings from a unique global survey to analyze how Enterprise 2.0 has been adopted in developing economies and how much it contributes to individual company performance. Two results stand out. While the use of social technologies by companies is gaining momentum, adoption remains patchy and still lags in developed countries. Nevertheless, clear evidence exists that Enterprise 2.0 in developing countries, when used at scale, lifts company performance, especially when integrated into workflows and when companies redefine their processes and operating models through social technologies.

Globalization and its Challenges for Teacher Education in Nigeria

2014 ◽  
pp. 229-236
Author(s):  
A. O. K. Noah ◽  
Adesoji A. Oni ◽  
Simeon A. Dosunmu
Keyword(s):  
Teacher Education ◽  
Educational System ◽  
Developed Countries ◽  
Global Market ◽  
The Other ◽  
Other Hand ◽  
Catch Up ◽  
The Developed Countries

The phenomenon of globalization is defined variously, but in general, it is defined as the establishment of a global market for goods and capital, leading to what could be described as a multiplicity of linkages and interconnections between places, events, ideas, issues, and things, irrespective of whether they are directly related or not. Globalization on the other hand cannot be a reality in any nation if its educational system is not implicitly or explicitly geared towards achieving meaningful and desirable change for that society. However, since education and indeed the (educator) teacher constitute the most viable instruments by which an emerging nation can catch up with the developed countries, globalization will therefore be a mirage if teacher education is not geared towards producing teachers who are globalization friendly, teachers who are not allergic to globalization. In view of the above, this chapter examines the concept of globalization side by side with the current goals of teacher education in Nigeria.

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