scholarly journals Understanding the Brazilian demand regime: a Kaleckian approach

2020 ◽  
Vol 8 (2) ◽  
pp. 287-302
Author(s):  
Bruno Thiago Tomio
Keyword(s):  
Developing Countries ◽  
Open Economy ◽  
Developed Countries ◽  
Single Equation ◽  
Policy Implications ◽  
Estimation Methods ◽  
Empirical Literature ◽  
Distribution Models ◽  
Income Data ◽  
Functional Distribution

The empirical literature on Kaleckian growth and distribution models consists almost exclusively of studies of developed countries. These studies have used varied econometric techniques and estimation methods, but little attention has been given to developing countries. Onaran and Galanis (2013) provide an extensive review of this literature, and they complement it by estimating models for some developing countries. However, owing to lack of data they were unable to estimate their model for Brazil. This paper expands the empirical literature by applying it to Brazil. The Brazilian demand regime is analysed for the period of 1956–2008, using functional distribution of income data supplied by Adalmir Marquetti (which was developed in a paper by Marquetti et al. 2010). The paper estimates the open-economy Bhaduri–Marglin model using the single-equation technique outlined in Hein and Vogel (2008). The results of the estimation show that the demand regime in Brazil is wage-led domestically despite being an open economy. Consequently, increases in the profit share tend to diminish demand. The paper concludes with some policy implications of the findings.

Wealth and governance in unstable states : South Africa as a context for Mancur Olson's theory of collective action

2016 ◽  
Author(s):  
◽  
Pamela E. Kelrick
Keyword(s):  
South Africa ◽  
Developing Countries ◽  
Collective Action ◽  
Temporal Dynamics ◽  
Generalized Additive Models ◽  
Political Stability ◽  
Developed Countries ◽  
Additive Models ◽  
Policy Implications ◽  
Empirical Analyses

[ACCESS RESTRICTED TO THE UNIVERSITY OF MISSOURI AT AUTHOR'S REQUEST.] Mancur Olson's theory of collective action has primarily been construed and applied to developed countries with formal economies and (generally) socio-political stability. Yet, he asserted that his theory of collective action would apply in developing countries, even those which are far less stable. This study examined Olson's assertion that collective action applies in developing countries, using South Africa as a case study. The empirical analyses included canonical correlation analysis and generalized additive models, using attribute, spatial, and temporal data to understand the spatial and temporal dynamics between wealth and governance in South Africa. Geographic clustering by race and economic class remains persistent despite democratic reforms and improved governance engagement. In addition, findings of the empirical analyses were used to evaluate Olson's theory of collective action and frame the policy implications. Collective action is consistent with findings, but, in the context of developing countries, ought to include more prominent considerations of path dependency, increasing returns, and historical institutionalism.

The Evolution of the Digital Divide across Developing Countries

2013 ◽  
pp. 1554-1570
Author(s):  
Nicoletta Corrocher ◽  
Anna Raineri
Keyword(s):  
Developing Countries ◽  
Digital Divide ◽  
Low Income ◽  
Competition Policy ◽  
Developed Countries ◽  
Policy Implications ◽  
Effective Strategy ◽  
Middle Income ◽  
Middle Income Countries ◽  
Emerging Patterns

This chapter aims at investigating the evolution of the digital divide within a set of developing countries between the years 2000 and 2005. In doing so, it moves away from the traditional analysis of the digital divide, which compares developed countries and developing countries, and examines the existing gap within a relatively homogeneous group of countries. On the basis of the theoretical and empirical contributions from scholars in different disciplines, we select a series of socioeconomic and technological indicators and provide an empirical assessment of the digitalization patterns in a set of 51 low income and lower-middle income countries. By means of cluster analysis techniques, we identify three emerging patterns of the digital divide and derive a series of policy implications, related to the implementation of an effective strategy to reduce digital backwardness. The characteristics of each pattern of digitalization can be also usefully employed to understand whether past interventions, especially in the area of competition policy, have been successful in addressing country-specific issues.

Modelling the Open Economy, Devaluation, and the Exchange Rate in Developing Countries

2020 ◽  
pp. 277-306
Author(s):  
Giovanni Andrea Cornia
Keyword(s):  
Developing Countries ◽  
Exchange Rate ◽  
Open Economy ◽  
Exchange Rate Volatility ◽  
Empirical Literature ◽  
Economy Model ◽  
Poor Countries ◽  
Pros And Cons ◽  
External Sector ◽  
The Impact

The chapter first examines the limitations of conventional open-economy macro models, such as the Mundell–Fleming model, when they are applied to developing countries. It discusses the Swan–Salter model and the three-sector dependent-economy model that better capture the reality of the external sector in poor countries. It then discusses the impact of devaluation under conditions of closed and open capital accounts and shows the limitation of a devaluation unaccompanied by structural measures in little diversified poor economies and in economies with large dollar liabilities. In this regard, it examines the results of the empirical literature on the contractionary or expansionary effect of devaluation in developing countries. Finally, it reviews the pros and cons of alternative exchange rate regimes, the impossible trinity theorem, and measures to control exchange rate volatility through capital controls.

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)].

Livestock in the Food Debate

2014 ◽  
Author(s):  
Purvi Mehta-Bhatt ◽  
Pier Paolo Ficarelli
Keyword(s):  
Developing Countries ◽  
Food Security ◽  
Developed Countries ◽  
Policy Implications ◽  
Farm Animals ◽  
Industrial Countries ◽  
Livestock Sector ◽  
Pros And Cons ◽  
Nutrition Value ◽  
Agriculture Systems

Livestock is an integral part of agriculture and a prominent source of food. It contributes 40% of the global value of agricultural output and supports the livelihoods and food security of almost a billion people, especially in developing countries. There is nothing new in amalgamation of farm animals in agriculture system, but the debate questioning its existence and relevance is a rather new drift. The politics, the climate debate, the nutrition debate around livestock sector, especially levitating from industrial countries, needs to be sympathetic toward the millions of people, especially in developing countries, that continue to remain dependent on livestock as an important, or often the only, source of livelihood. This chapter looks at the diverse livestock agriculture systems in industrial and less developed countries and it’s policy implications. It re-examines the prevailing debates such as, the heat and meat debate, the zoonotic disease discussions, the debate on ethics around animal-source food and the debate of over- and undernutrition. The authors take a balanced view on the pros and cons of livestock sector, considering the global debates, but at the same time, looking at livestock sector’s socioeconomic and nutrition value for the poor. Take a global view, debate, campaign but don’t forget to also look at the sector from livelihood and food-security angle. The underline message of the chapter is to call for a bounteous outlook, evidence-based debate and equable policies.

Do government expenditure reduce income inequality: evidence from developing and developed countries

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Noor Zahirah Mohd Sidek
Keyword(s):  
Developing Countries ◽  
Income Inequality ◽  
Driving Forces ◽  
Government Expenditure ◽  
Developed Countries ◽  
Policy Implications ◽  
Content Type ◽  
Positive Effects ◽  
The Impact ◽  
Developing And Developed Countries

Purpose This paper aims to re-examine the impact of government expenditure on income inequality. Existing studies provide mixed results on whether government expenditure reduces or increases income inequality. In this paper, government expenditure is viewed as a tool for redistribution, hence, its impact on inequality is examined. Design/methodology/approach A sample of 122 countries with 91 and 31 countries categorized as developing and developed countries is used. The dynamic panel threshold regression is used to examine the impact of government expenditure on income inequality and to estimate the turning point of the negative or positive effects. Findings The major findings suggest that, in general, government expenditure does reduce income inequality. Results from developed countries support the inversed U-shaped Kuznet curve where higher government expenditure initially led to more inequality but would eventually bring about a positive effect after a certain threshold level. For developing countries, education and development expenditure were the driving forces towards lower income inequality. Practical implications Several policy implications can be derived from this paper. First, government expenditure is a useful tool to alleviate the problem of income inequality. More integration with the global economy via trading activities is also an important channel to help reduce income inequality. Finally, better institutional quality provides an effective ecosystem in promoting better redistribution of income via government expenditure. Originality/value This paper presents a maiden attempt to estimate a threshold value or when government expenditure starts to reduce or increase income inequality. The sample is segregated into developed and developing countries to further control the effect of government size and the level of development of a country.

The Evolution of the Digital Divide across Developing Countries

2010 ◽  
pp. 58-74
Author(s):  
Nicoletta Corrocher ◽  
Anna Raineri
Keyword(s):  
Developing Countries ◽  
Digital Divide ◽  
Low Income ◽  
Competition Policy ◽  
Developed Countries ◽  
Policy Implications ◽  
Effective Strategy ◽  
Middle Income ◽  
Middle Income Countries ◽  
Emerging Patterns

This chapter aims at investigating the evolution of the digital divide within a set of developing countries between the years 2000 and 2005. In doing so, it moves away from the traditional analysis of the digital divide, which compares developed countries and developing countries, and examines the existing gap within a relatively homogeneous group of countries. On the basis of the theoretical and empirical contributions from scholars in different disciplines, we select a series of socioeconomic and technological indicators and provide an empirical assessment of the digitalization patterns in a set of 51 low income and lower-middle income countries. By means of cluster analysis techniques, we identify three emerging patterns of the digital divide and derive a series of policy implications, related to the implementation of an effective strategy to reduce digital backwardness. The characteristics of each pattern of digitalization can be also usefully employed to understand whether past interventions, especially in the area of competition policy, have been successful in addressing country-specific issues.

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 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 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.

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