scholarly journals Implications of Public External Debt for Social Spending: A Case Study of Selected Asian Developing Countries

2015 ◽  
Vol 20 (1) ◽  
pp. 71-103
Author(s):  
Sadia Shabbir ◽  
Hafiz M. Yasin
Keyword(s):  
Developing Countries ◽  
External Debt ◽  
The Philippines ◽  
Social Spending ◽  
Social Sector ◽  
Scarce Resources ◽  
General Method Of Moments ◽  
Development Spending ◽  
External Borrowing ◽  
The Impact

For developing countries with budgetary and balance-of-payments gaps to meet, maintaining large stakes of external debt is not free of cost. Highly indebted countries have to set aside a sizeable fraction of their scarce resources to service their debt, which naturally affects their development spending in general and allocations for the social sector in particular. This study examines the behavior of seven developing Asian countries and analyzes the impact of public external debt on social sector spending. The panel dataset includes Pakistan, India, Bangladesh, Sri Lanka, Nepal, the Philippines, and Indonesia, and spans the period 1980–2010. Our empirical analysis is based on three interrelated equations for different spending categories, which are estimated using the general method of moments. The study’s results confirm the common wisdom that outstanding external debt and its servicing liability have an adverse impact on public spending, particularly on social sector spending. This suggests that developing countries need to mobilize their own resources and minimize their dependence on external borrowing as far as possible.

Social spending and democratic institutions in Southeast Asia

2019 ◽  
Vol 18 (3) ◽  
pp. 381-395
Author(s):  
Fadillah Putra
Keyword(s):  
Developing Countries ◽  
Social Policy ◽  
Public Participation ◽  
The Philippines ◽  
Policy Outcomes ◽  
Social Spending ◽  
Democratic Institutions ◽  
Content Type ◽  
The Government ◽  
The Impact

Purpose This paper aims to analyse how democratic institutions affects social spending formations in the context of developing countries. Furthermore, this essay will also challenge the theory that the government system (majoritarian versus consensus democracy) influences the magnitude of social spending and welfare commitment, especially in Southeast Asian democracies, namely, Indonesia, Malaysia, Thailand and the Philippines. Design/methodology/approach This research uses descriptive statistics and qualitative data to match social spending with the development of democratisation in four cases. Findings The main argument is whether the presence of democratic institutions encourages the government to be more open, citizen-oriented and responsive or whether the inclusive political conditions will create more open public participation in the policymaking process. Thus, in the context of developing countries, public participation will be more likely to demand social policies. Research limitations/implications It has not been able to undertake a more detailed impact evaluation assessment of the development and change of democratic institutions towards policy outcomes within a shorter temporal scope. In addition, this thesis does not also provide details or explanations about the interaction process between particular democratic institutions and specific social policy sectors. Practical implications The process of interactions between particular electoral systems. For instance, the contribution to the emergence of policy in the health services sector or conducting research in normative democratic institutions such as public awareness of the importance of public participation in shaping and directing the implementation of poverty reduction policies could be studied, by using the historical institutionalism approach. Originality/value The impact of certain political institutions on public policy has become a very important discussion in the new institutionalism perspective. Social policy (social spending) as a manifestation of government’s commitment towards welfare is the result of institutional arrangement. In the context of developing countries, where social policy is needed to fulfill the basic needs of citizens, it is important to identify what kind of institutional formations are conducive to the development of social policy. This essay will analyse how democratic institutions affects social spending formations in the context of developing countries.

The effects of debt restructurings on income inequality in the developing world

2021 ◽  
pp. 135406612110014
Author(s):  
Glen Biglaiser ◽  
Ronald J. McGauvran
Keyword(s):  
Developing Countries ◽  
Panel Data ◽  
Income Inequality ◽  
Income Distribution ◽  
Government Spending ◽  
Tax Reform ◽  
Social Spending ◽  
The Poor ◽  
The Rich ◽  
The Impact

Developing countries, saddled with debts, often prefer investors absorb losses through debt restructurings. By not making full repayments, debtor governments could increase social spending, serving poorer constituents, and, in turn, lowering income inequality. Alternatively, debtor governments could reduce taxes and cut government spending, bolstering the assets of the rich at the expense of the poor. Using panel data for 71 developing countries from 1986 to 2016, we assess the effects of debt restructurings on societal income distribution. Specifically, we study the impact of debt restructurings on social spending, tax reform, and income inequality. We find that countries receiving debt restructurings tend to use their newly acquired economic flexibility to reduce taxes and lower social spending, worsening income inequality. The results are also robust to different model specifications. Our study contributes to the globalization and the poor debate, suggesting the economic harm caused to the less well-off following debt restructurings.

Illicit Financial Flows, Sovereign Debt, and Human Rights

2018 ◽  
pp. 317-336
Author(s):  
Cephas Lumina ◽  
Mulesa Lumina
Keyword(s):  
Sustainable Development ◽  
Human Rights ◽  
Sovereign Debt ◽  
Poverty Reduction ◽  
External Debt ◽  
Legal Framework ◽  
Financial Flows ◽  
Illicit Financial Flows ◽  
External Borrowing ◽  
The Impact

In recent years, there has been increasing attention to the problem of illicit financial outflows—broadly defined as funds that are illegally earned, transferred and utilized outside the country of origin in contravention of that country’s relevant legal framework. Illicit financial outflows divert resources away from activities that are essential for poverty reduction, sustainable development and the realisation of all human rights. They also contribute to the accumulation of external debt as governments that lack domestic resources as a result of these flows may resort to costly external borrowing. This chapter examines the nature of illicit financial flows, the factors that facilitate them and the measures taken by states, individually and collectively, to tackle them. It also discusses the impact of these flows on the realisation of human rights in the countries of origin and proposes concrete measures by which to curb illicit financial flows.

Evaluating the impact of policy research: Evidence from the evaluation of rural policy research in developing countries

Evaluation ◽  
2020 ◽  
Vol 26 (4) ◽  
pp. 541-561
Author(s):  
Roger Slade ◽  
Peter Hazell ◽  
Frank Place ◽  
Mitch Renkow
Keyword(s):  
Developing Countries ◽  
Mixed Method ◽  
Good Practice ◽  
Policy Research ◽  
Rural Poverty ◽  
Scarce Resources ◽  
Necessary And Sufficient ◽  
Research Investments ◽  
The Impact ◽  
Rural Policy

Policy research concerning developing countries must compete for scarce resources with alternative development investments, many of which are amenable to quantitative assessment of their impact and economic efficiency. This is especially true for policy research that addresses agriculture, food and rural poverty—rural policy research. This paper draws on existing evaluations of rural policy research to identify good practice in the conduct of impact evaluations in developing countries. While much has been learnt from these evaluations about how rural policy research can influence policies, the impact of the policy changes that may follow, and about methods for conducting such studies, very few have assessed the efficiency or economic benefit of rural policy research investments. The paper concludes that while the current focus on the use of mixed-method evaluations is necessary and sufficient in most cases, in the context of allocating public resources, evaluations that provide plausible estimates of the rates of return to major rural policy research investments, or even rural policy research institutions yield important additional and comparative information for decision makers. However, such quantitative assessments do not replace but depend on the prior conduct of qualitative and mixed-method evaluations.

scholarly journals Job change and self-control of waste pickers: evidence from a field experiment in the Philippines

2018 ◽  
Vol 9 (2) ◽  
pp. 22-35
Author(s):  
Hide-Fumi Yokoo ◽  
Maki Ikuse ◽  
Aries Roda D. Romallosa ◽  
Masahide Horita
Keyword(s):  
Developing Countries ◽  
Side Effects ◽  
Field Experiment ◽  
Side Effect ◽  
The Philippines ◽  
Self Control ◽  
Informal Workers ◽  
Negative Side ◽  
The Impact ◽  
Waste Pickers

Environmental policies may have a negative side effect on employment, often in a specific industry in the short run. Workers in regulated industries can be affected by losses in job-specific human capital. The informal sectors in developing countries are often associated with environmental pollution and thus targeted by such policies. Welfare loss due to this side effect can be problematic in developing countries, since they often lack safeguarding schemes, including unemployment insurance. Inducing workers in informal sectors to change their jobs can mitigate these negative side effects. This study examines efficient methods of inducing informal workers to change jobs. An alternative job is offered to informal workers at a dumpsite in the Philippines and whether changing the scheme of wage payment increases the acceptance of the offer is examined. The impacts of changing payment schemes are evaluated by using a randomized field experiment. The sampled 112 waste pickers each randomly receive one of four offers for an alternative job, and the number of those who accept the offer is observed to evaluate the impact of less frequent payment (i.e., once every three days instead of daily). Piece rates and fixed wages are also compared. Those offered less frequent payment are more likely to accept the job offer compared with those offered daily payment. This preferred payment scheme can mitigate the side effects of environmental policy and workers’ self-control problem related to savings, while minimizing moral hazard.

scholarly journals External Debt and its Impact on Exchange Rates in the Philippines

2022 ◽  
Vol 4 (1) ◽  
pp. 93-103
Author(s):  
Mikayla Mendoza ◽  
Andrew Gonzalez
Keyword(s):  
Exchange Rate ◽  
Exchange Rates ◽  
External Debt ◽  
Negative Relationship ◽  
The Philippines ◽  
Debt Management ◽  
Foreign Reserves ◽  
The Exchange Rate ◽  
The Government ◽  
The Impact

The exchange rate is a crucial macroeconomic factor within emerging and transition economies. External debt is a driving force for the growth of an economy. This study then aims to determine the impact of external debt on the exchange rate of the Philippines by examining the impact of external debt accumulation on the Philippines' exchange rates. The researcher applies a correlational time series analysis in order to capture the impact of external debt, debt services on external debt, and foreign reserves on the exchange rate of the Philippines within the period from 1980 to 2019. The relationships between variables based on the developed theoretical framework are analyzed through multiple regression analysis. Empirical results show that external debt and debt services positively impact the exchange rate, while foreign reserves exhibit a negative relationship. The corresponding coefficients indicate that a change in any of the independent variables will cause significant but marginal fluctuations in the exchange rate in the case of the Philippines. The author concludes that external debt encourages the growth of exchange rates in the long run in the case of the Philippines due to its positive relationship. This implies that the Philippine government should aim to focus on more efficient external debt management strategies to enhance the value of the exchange rate of the Philippine Peso relative to other countries. Accordingly, the researcher recommends that the government take the necessary means to reduce the country's external debt to better the economy.

The Impact of Globalization on External Debts

2019 ◽  
pp. 23-48
Author(s):  
Serap Barış
Keyword(s):  
Developing Countries ◽  
Data Analysis ◽  
Positive Relationship ◽  
Panel Data Analysis ◽  
External Debt ◽  
Economic Globalization ◽  
Empirical Literature ◽  
Political Globalization ◽  
The Impact ◽  
The Relationship

In this chapter, the answer to this question has been researched theoretically and empirically. KOF Globalization Index has been used as the measure of globalization unlike the empirical literature that explores the relationship between globalization and external debt. In the study where panel data analysis method has been used, the findings show that there is a positive relationship between KOF Globalization Index and external debt in developing countries. When it is examined from the perspective of the sub-indexes of globalization, it is seen that the economic globalization index is positively related to external debt. Social and political globalization has no effect on external debts. Impact of the control variables used in the analysis on external debts is significant and negative. From this, it can be said that general globalization and economic globalization have increased the external debt of the nations.

Acceptance of wearable fitness devices in developing countries: exploring the country and gender-specific differences

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Shweta Pandey ◽  
Deepak Chawla ◽  
Sandeep Puri ◽  
Luz Suplico Jeong
Keyword(s):  
Developing Countries ◽  
The Philippines ◽  
Individual Characteristics ◽  
Partial Least Square ◽  
Future Research ◽  
Content Type ◽  
Gender Specific Differences ◽  
And Gender ◽  
The Impact ◽  
Gender Specific

Purpose Notwithstanding the novelty and importance of wearable fitness devices, few studies have focussed on comparing the drivers of adoption and usage of wearable fitness in the context of developing countries. This study aims to explore factors that drive overall acceptance of wearable fitness devices in developing countries (India and the Philippines) and whether the impact of these factors on the intention to adopt (INT) differs by country and gender. Design/methodology/approach The study extends the existing body of knowledge by developing a model that integrates the impact of various perceived benefits (health, autonomy, social, hedonic, symbolic), health self-efficacy (HEALTHSE) and individual characteristics (technological innovativeness [TI]) on the INT wearable fitness devices and the moderating impact of country and gender. The analysis was carried out using partial least square and data of 343 respondents. Findings This study finds that the INT wearable fitness devices by consumers in developing countries are positively impacted by hedonic, health and autonomy, HEALTHSE and TI. Symbolic and social factors do not have any significant impact on the overall INT wearable fitness devices. However, there are country and gender-specific differences that are consequential to the development of marketing strategies. Research limitations/implications The framework and results are specific to the two countries and limited by convenience sampling. Future research can focus on replication across different countries and extend the model with additional contextual factors such as perceived risks. Originality/value To the best knowledge of the authors, this is one of the few studies to examine and compare the drivers of adoption of wearable fitness devices in lesser researched developing countries. Also, it is one of the few studies to compare the moderating impact of country and gender in the context of the INT wearable devices. The study provides a theoretical and methodological foundation for future research, as well as practical implications for global companies developing and promoting wearable fitness devices.

scholarly journals Capital Flow, Capital Control, and Economic Growth: Evidence from Developed & Developing Economies

2021 ◽  
Vol 7 (2) ◽  
Author(s):  
Lubna Khan ◽  
Imtiaz Arif ◽  
Syed Ali Raza
Keyword(s):  
Economic Growth ◽  
Developing Countries ◽  
Developing Economies ◽  
External Debt ◽  
Capital Flow ◽  
Annual Data ◽  
Capital Control ◽  
Empirical Estimation ◽  
Middle Income ◽  
The Impact

Purpose: The current paper analyzes the effects of capital flow and capital control on economic growth in developed and developing countries. We used four main components of capital flow such as, FDI, exports, remittances and external debt Design/Methodology/Approach: The econometric models are tested by using the annual data of 1995-2017 from 54 countries, classified as developed (high-income) and developing (middle-income) economies. Findings: Empirical estimation of PMG revealed that all four components of capital flow augment the economic growth in both developed and developing countries. However, restrictions on these flows reduces the impact of FDI, external debt and exports but raises the influence of remittances on the economic growth. Implications/Originality/Value: The findings of this paper also provides some useful insights for policymakers to use capital control as a tool for economic progress.                                                             

scholarly journals Secondary education and international labor mobility: evidence from the natural experiment in the Philippines

2020 ◽  
Vol 11 (1) ◽  
Author(s):  
Yoko Sakai ◽  
Kazuya Masuda
Keyword(s):  
Developing Countries ◽  
Labor Market ◽  
Secondary Education ◽  
Education Reform ◽  
Labor Mobility ◽  
The Philippines ◽  
International Labor ◽  
Key Factor ◽  
International Labor Mobility ◽  
The Impact

AbstractInternational labor mobility is a key factor for a well-functioning labor market. Although educational attainment is known to affect regional labor mobility within a country, evidence of a relationship between schooling and international labor mobility is limited, particularly in developing countries. This study uses the across-cohort variation in the exposure to the 1988 free secondary education reform in the Philippines to examine the impact of years of education on the propensity of working abroad. The results suggest that free secondary education increased the years of education for men. Moreover, the additional years of education reduced the likelihood of working abroad by 3.2% points on average. However, an extra year of female education was not associated with the probability of working abroad. These results indicate that a program for improving access to secondary education may affect international labor mobility for men even after a few decades. It underscores the importance of considering the possible labor market consequences when designing the education reform in developing countries.

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