scholarly journals Macroeconomic Policies and Business Cycle: The Role of Institutions in Selected SAARC Countries

2012 ◽  
Vol 51 (4II) ◽  
pp. 147-160 ◽  
Author(s):  
Samina Sabir ◽  
Khushbakht Zahid
Keyword(s):  
Developing Countries ◽  
Interest Rate ◽  
Business Cycle ◽  
Emerging Market ◽  
Developed Countries ◽  
Empirical Literature ◽  
Fiscal Policies ◽  
Macroeconomic Policies ◽  
Ample Evidence ◽  
Weak Institutions

Fiscal and monetary policies are used to smooth the cyclical fluctuations in output. There is ample evidence that developed countries use counter cyclical policies in principle for this purpose [Gali and Perotti (2002); Sack and Wieland (2007)]. Indeed, OECD and other developed countries use loose monetary and fiscal policies to tackle with financial crisis of 2007 [IMF (2008)]. However situation is reverse in developing countries, they are using the pro-cyclical policies to stabilise business cycle fluctuations that results in higher output volatility [Hausmann and Stein (1996); and Kaminsky, Reinhart, and Vegh (2004)]. Theoretically, there are several factors such as limited excess to credit, poor governance and institutions1 that are responsible for conduct of pro-cyclical policies in developing countries, of which institutional framework is important. A poor institution is a key factor that is responsible for the conduct of pro-cyclical policies in emerging market economies. Countries, where institutions are strong, conduct contractionary policies in boom and expansionary policies in recession while countries with poor level of institutions contract the policies in recession and expand in boom [Acemoglu, Johnson, Robinson, and Thaicharoen (2003); Calderon and Schmidt-Hebbel (2008)]. Countries with weak institutions show the strong negative relation between output and interest rate while countries with strong institutions have positive link between output and interest rate [Duncan (2012)]. That’s why developing countries are pursuing tight monetary policy in recession and loose policy in boom, although little empirical literature is available on this issue [Lane (2003)]. Fiscal policies are pro-cyclical in the countries, where political system is subject to multiple fiscal veto points that results in higher output fluctuation [Stein, et al. (1999); Braun (2001)]. Indeed, rent-seeking government conducts pro-cyclical policies.

scholarly journals Predictors of Attitudinal Outcomes in Mobile Advertising in Sri Lanka: An Emerging Market

2016 ◽  
Vol 8 (3) ◽  
pp. 129 ◽  
Author(s):  
Vilasini De Silva ◽  
Jun Yan
Keyword(s):  
Developing Countries ◽  
Sri Lanka ◽  
Family Income ◽  
Emerging Market ◽  
Developed Countries ◽  
Moderating Effect ◽  
Sri Lankan ◽  
Mobile Advertising ◽  
Mobile Media

<p>Mobile media has been rapidly evolving in the market with novel technological features. It has captured the advertising field in a revolutionary manner. Unlike in developed countries mobile media is less popular in developing countries. This study has been designed to explore the Sri Lankan consumers’ attitudes towards mobile advertising. Self-administrative questionnaire was applied to collect data and 413 valid responses were gathered. The results show that, i) Demographics (age, family income) and ii) Experience with internet advertisements are predictors of attitude towards mobile advertising. Experience with internet advertisements has significant moderating effect on attitude on mobile advertising.</p>

scholarly journals Stock Prices and Exchange Rates: Are they Related? Evidence from South Asian Countries

2002 ◽  
Vol 41 (4II) ◽  
pp. 535-550 ◽  
Author(s):  
Naeem Muhammad ◽  
Abdul Rasheed
Keyword(s):  
Developing Countries ◽  
Exchange Rates ◽  
Stock Prices ◽  
Stock Markets ◽  
Negative Relationship ◽  
Developed Countries ◽  
Empirical Literature ◽  
Economic Policies ◽  
Foreign Portfolio Investment ◽  
The Developed Countries

The issue of whether stock prices and exchange rates are related or not has received considerable attention after the East Asian crisis. During the crisis the countries affected saw turmoil in both currency and stock markets. If stock prices and exchange rates are related and the causation runs from exchange rates to stock prices, then the crisis in the stock markets can be prevented by controlling the exchange rates. Moreover, developing countries can exploit such a link to attract/stimulate foreign portfolio investment in their own countries. Similarly, if the causation runs from stock prices to exchange rates then authorities can focus on domestic economic policies to stabilise the stock market. If the two markets/prices are related then investors can use this information to predict the behaviour of one market using the information on other market.1 Most of the empirical literature that has examined the stock prices-exchange rate relationship has focused on examining this relationship for the developed countries with very little attention on the developing countries. The results of these studies are, however, inconclusive. Some studies have found a significant positive relationship between stock prices and exchange rates [for instance Smith (1992); Solnik (1987) and Aggarwal (1981)] while others have reported a significant negative relationship between the two [e.g., Soenen and Hennigar (1998)]. On the other hand, there are some studies that have found very weak or no association between stock prices and exchange rates [for instance, Franck and Young (1972); Bartov and Bodnor (1994)].

Resource Based Internationalization from Small Developing Countries

2013 ◽  
pp. 1821-1836 ◽  
Author(s):  
Nigel L Williams ◽  
Tom Ridgman ◽  
Y S Shi
Keyword(s):  
Developing Countries ◽  
Resource Constraints ◽  
Developed Countries ◽  
Resource Base ◽  
Weak Institutions ◽  
Entry Strategies ◽  
Research Gap ◽  
Internationalization Theory ◽  
High Degree ◽  
Constrained Conditions

Small developing countries, in contrast to their developed counterparts, are characterized by a narrow resource base, (relatively) weak institutions, and a high degree of openness. For organizations from these states, internationalization is an imperative rather than a choice due to the small home market. However, they face severe resource constraints. When compared to developed countries, the level of formal support is relatively low, and firms need to build capabilities under resource constrained conditions. Further, as open economies, firms face intense competition from imports. Internationalization has largely remained unexplored in firms from these countries. Therefore, the objective of this chapter is to build a framework to explain internationalization of SMEs from small states. First, the various modes of international activity are discussed along with market entry strategies. The historical development of internationalization theory is then examined, identifying the major research paradigms and their underlying theoretical basis. Applicable theories are then assessed using an epistemological framework. The resulting research gap of resource development during internationalization was then examined using case studies of firms from a small state, Trinidad and Tobago.

Exploring the Relationships among Interest Rate, Exchange Rate, and Stock Market in Indonesia

2016 ◽  
Vol 4 (3) ◽  
pp. 37-43
Author(s):  
Sherlinda Octa Yuniarsa ◽  
Jui-Chuan Della Chang
Keyword(s):  
Exchange Rate ◽  
Interest Rate ◽  
Stock Market ◽  
Stock Price ◽  
Structural Breaks ◽  
Emerging Market ◽  
Exchange Rate Volatility ◽  
Market Volatility ◽  
Empirical Literature ◽  
Stock Market Volatility

Objective - The purpose of this research is to explore the relationships among interest rate, exchange rate, and stock price in Indonesia. Methodology/Technique - This study used data from the Central Bank of Indonesia to empirically test a proposed model of interest rate, exchange rate, and stock price. Findings - The findings confirmed that there are positive volatilities from exchange rate and negative volatility from interest rate. The relationships among interest rate, exchange rate, and stock market excessive volatility a little bit strengthen during economic crises, a study that allows for structural breaks, to account for the effects of sudden macroeconomic shocks, recessions, and financial crises, would be important to empirical literature on Indonesia. Novelty - This study proved that it is important to point out the variance decomposition results also showed that except for volatility in the exchange rate, interest rate, and stock market volatility also seems to explain quite a high proportion of the some variations of the macroeconomic excessive volatility. Type of Paper - Conceptual Keywords: interest rate volatility, exchange rate volatility, stock market volatility, emerging market, Asymmetric ARCH models

scholarly journals The Impact of Financial Development on Carbon Emissions: A Global Perspective

2019 ◽  
Vol 11 (19) ◽  
pp. 5241 ◽  
Author(s):  
Chun Jiang ◽  
Xiaoxin Ma
Keyword(s):  
Developing Countries ◽  
Financial Development ◽  
Carbon Emissions ◽  
Emerging Market ◽  
Generalized Method Of Moments ◽  
Specific Effect ◽  
Developed Countries ◽  
Global Perspective ◽  
Empirical Results ◽  
The Impact

Financial development has been deemed to be an important factor influencing carbon emissions; however, the specific effect generated by financial development is still disputed. In this study, we examined the relationship between financial development and carbon emissions based on a system generalized method of moments and the data of 155 countries, and we further analyzed the national differences by dividing the sample countries into two sub-groups: developed countries, and emerging market and developing countries. The empirical results indicated that from a global perspective, financial development could significantly increase carbon emissions, and the analysis of the emerging market and developing countries reached the same conclusion; however, the results indicated that for developed countries, the effect of financial development on carbon emissions is insignificant. A series of robustness checks were conducted and confirmed that our empirical results were reliable. We suggest that policymakers in emerging market and developing countries should carefully balance financial development and environmental protection, as financial development will promote carbon emissions before countries reach a relatively high development level.

scholarly journals How Distortions Alter the Impacts of International Trade in Developing Countries

2020 ◽  
Vol 12 (1) ◽  
pp. 213-238
Author(s):  
David Atkin ◽  
Amit K. Khandelwal
Keyword(s):  
Developing Countries ◽  
International Trade ◽  
Development Economics ◽  
Recent Literature ◽  
Developed Countries ◽  
Market Failures ◽  
Trade Reforms ◽  
Weak Institutions

Substantial research in development economics has highlighted the presence of weak institutions, market failures, and distortions in developing countries. Yet much of the knowledge generated in international trade comes from workhorse models that abstract from these frictions. This review summarizes the recent literature that assesses how these characteristics interact (or may interact) with trade reforms, resulting in different impacts in developing countries relative to what we would expect in developed countries. We discuss understudied areas that warrant further research.

scholarly journals Factors Influencing the Adoption of Facebook as a Marketing Channel among SMEs in Nigeria as a Developing Country: A Conceptual Framework

2021 ◽  
Vol 16 (1) ◽  
pp. 99-107
Author(s):  
Idris Na'umma Abdullahi ◽  
Mohd Heikal Husin ◽  
Ahmad Suhaimi Baharudin
Keyword(s):  
Developing Countries ◽  
Conceptual Framework ◽  
Small And Medium Enterprises ◽  
Marketing Channel ◽  
Cost Effective ◽  
Developed Countries ◽  
Empirical Literature ◽  
Factors Influencing ◽  
Peer Review Journal ◽  
Medium Enterprises

This paper reviews empirical literature to develop a conceptual framework for the adoption of Facebook as a marketing channel by Small and Medium Enterprises (SMEs) in developing countries like Nigeria. Recent peer-review journal articles were reviewed to develop the conceptual framework for this study. Facebook provides SMEs with a cost-effective strategy for marketing their products and services to both local and international customers. However, SMEs in developing countries like Nigeria are slow in the adoption of Facebook. A literature review has revealed a lack of research on the adoption of Facebook by SMEs from the context of developing countries like Nigeria. Most of the existing studies on Facebook adoption were conducted in developed countries. Findings from such studies cannot be directly applied to SMEs in developing countries because they face different challenges.  The paper proposes a conceptual framework based on the Technology-Organization-Environment (TOE) framework that can be empirically tested by a future researcher to determine factors influencing the intention of small and medium enterprises operating in the context of developing countries to adopt Facebook as a marketing channel to enhance their competitive advantage in the modern market. Findings from this study would be beneficial to decision-makers in Nigerian SMEs and Nigerian government agencies with responsibility for strengthening SMEs' activities in the country. It will also encourage and guide SMEs to adopt Facebook as their marketing channel.

scholarly journals The Impact of Industry’s Concentration on Innovation: Evidence from Russia

2017 ◽  
Vol 11 (1) ◽  
pp. 37-49
Author(s):  
Anna Bykova
Keyword(s):  
Emerging Market ◽  
Research Question ◽  
Developed Countries ◽  
Empirical Literature ◽  
Innovation Activity ◽  
Local Market ◽  
Industrial Concentration ◽  
Measure Concentration ◽  
Innovation Output ◽  
The Impact

In pursuit of economic growth and development, companies have tried to strike a balance between competition and monopoly power. This paper reviews evidence on industrial concentration and its economic consequences (notably firms’ performance as measured by innovation output) in the framework of emerging market conditions. Competition theory was built in developed countries under assumptions that do not necessarily fit emerging economies. Our main research question is whether the level of local market concentration influences (and if it does, in which way) innovation activity undertaken by companies operating on emerging markets. Apart from linear association, the empirical literature suggests that industrial concentration could exhibit an inverted U-relationship as far as its link to certain economic indicators of success, such as innovation output. We measure concentration by using the Herfindahl-Hirshman Index. This paper finds empirical evidence in support of the Schumpeterian hypothesis that more concentrated industries stimulate innovation and observe the inverted U-relationship curve. Further, the empirical model demonstrates the relative importance of technological leadership in concentration industries to enhance innovations. This suggests a role for recalibrating firm and industry policies.

scholarly journals Investor-State Arbitration: Economic and Empirical Perspectives

2020 ◽  
pp. 1
Author(s):  
Michael Faure ◽  
Wanli Ma
Keyword(s):  
Developing Countries ◽  
Law And Economics ◽  
Developed Countries ◽  
Empirical Literature ◽  
Commercial Arbitration ◽  
International Commercial Arbitration ◽  
Long Time ◽  
Global North ◽  
The Rich ◽  
Settlement Of Disputes

The investor-state arbitration system (“ISA”) was originally modelled on traditional commercial arbitration and was expected to deliver fast, good, and cheap decisions, especially in comparison to domestic court systems. Yet the ISA system has increasingly been criticized, especially by developing countries. Developing countries claim that the system is not cheap, that decision-making increasingly takes a long time, and that arbitrators are biased in favor of investors (often coming from developed countries in the global North) and against states from the developing South. Several developing states have even withdrawn from the ICSID Convention, which governs the settlement of disputes between investors and states through the institution of the same name. This article provides an economic and an empirical perspective on ISA: It reviews the traditional Law and Economics arguments in favor of and against international commercial arbitration, analyzing to what extent the characteristics of ISA make ISA different than international commercial arbitration. Moreover, the article summarizes the rich empirical literature on the functioning of ISA, and it compares and synthesizes this empirical literature with Law and Economics theories. Based on both Law and Economics and the empirical literature, the article then analyzes existing suggestions for reforming the ISA system.

scholarly journals Inflation Sources Across Developed And Developing Countries; Panel Approach

2012 ◽  
Vol 11 (2) ◽  
pp. 185
Author(s):  
Nayef Al-Shammari ◽  
Mohammed Al-Sabaey
Keyword(s):  
Developing Countries ◽  
Exchange Rate ◽  
Interest Rate ◽  
Money Supply ◽  
Government Spending ◽  
Oil Prices ◽  
Developed Countries ◽  
Effective Exchange ◽  
Main Determinants ◽  
Effective Exchange Rate

This paper investigates the sources of inflation across a sample of countries in the world. The data set covers around fifty nine countries using yearly data over the period from 1970 through 2007. The model is estimated using a panel model with a random effects specification. Results indicate that the main determinants of inflation for developing countries are different than those for developed countries. Our findings show that the main determinants of inflation for developed countries include government spending, money supply growth, world oil prices, interest rate, nominal effective exchange rate, and population. Whereas, sources of inflation for developing countries are estimated to include government spending, money supply growth, world oil prices, and the nominal effective exchange rate. Findings also report that there is no significant evidence for factors such as interest rate and population to affect the general price levels in developing countries.

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