scholarly journals International Trade and Economic Misery in African Countries with Low Human Development

2021 ◽  
Vol 2 (4) ◽  
pp. 212-243
Author(s):  
Uchechukwu C. Nwogwugwu ◽  
Collins C. Umeghalu
Keyword(s):  
Growth Rate ◽  
International Trade ◽  
Exchange Rate ◽  
Trade Agreements ◽  
Balance Of Payments ◽  
Total Export ◽  
Manufacture Export ◽  
African Countries ◽  
Gdp Growth Rate ◽  
Per Capita

Puzzled by the demeaning level of poverty most African countries continue to grapple with despite their extensive participation in international trade, the study attempts to examine the encumbrances that tend to impede African countries from optimally reaping the developmental gains inherent in partaking in international trade, which seems to also worsen the economic misery the inhabitants endlessly contend with. The System Generalized Method of Moments (System-GMM) estimation technique was used in the study which involves 17 African countries and spans from 1995 - 2018. While misery index is used to measure economic misery, the impact of international trade on economic misery is captured by means of its effect via economic misery, economic growth rate, balance of payment, total export, manufacture export and exchange rate. The results of the study reveal that balance of payments, total export, manufacture export, per capita GDP growth rate, exchange rate and lagged form of economic misery all have positive effect on economic misery. While the effects of total export, manufacture export, per capita GDP growth rate, and exchange rate on economic misery are significant, those of balance of payments and lagged form of economic misery are insignificant. While the study recommends that international trade be engaged strategically such that it results in favourable balance of payments, it also encourages the discarding of obsolete trade policies such as outright bans on importation of certain commodities. Bilateral trade agreements are recommended over multilateral trade agreements, since they are more mutually beneficial and binding on the parties involved

International trade: Research of the reasons for the fall

2019 ◽  
pp. 79-91 ◽  
Author(s):  
V. S. Nazarov ◽  
S. S. Lazaryan ◽  
I. V. Nikonov ◽  
A. I. Votinov
Keyword(s):  
Growth Rate ◽  
International Trade ◽  
Exchange Rate ◽  
Global Economy ◽  
Structural Changes ◽  
Global Value Chains ◽  
Value Chains ◽  
Negative Contribution ◽  
Basic Commodity ◽  
The Impact

The article assesses the impact of various factors on the growth rate of international trade. Many experts interpreted the cross-border flows of goods decline against the backdrop of a growing global economy as an alarming sign that indicates a slowdown in the processes of globalization. To determine the reasons for the dynamics of international trade, the decompositions of its growth rate were carried out and allowed to single out the effect of the dollar exchange rate, the commodities prices and global value chains on the change in the volume of trade. As a result, it was discovered that the most part of the dynamics of international trade is due to fluctuations in the exchange rate of the dollar and prices for basic commodity groups. The negative contribution of trade within global value chains in 2014 was also revealed. During the investigated period (2000—2014), such a picture was observed only in the crisis periods, which may indicate the beginning of structural changes in the world trade.

scholarly journals Do Military Expenditure and Conflict Affect Economic Growth in Sri Lanka? Evidence from the ARDL Bounds Test Approach

2016 ◽  
Vol 8 (3) ◽  
pp. 1
Author(s):  
Abdul Rasheed Sithy Jesmy ◽  
Mohd Zaini Abd Karim ◽  
Shri Dewi Applanaidu
Keyword(s):  
Growth Rate ◽  
Civil War ◽  
Sri Lanka ◽  
Military Expenditure ◽  
Gdp Growth ◽  
Per Capita Gdp ◽  
Long Run ◽  
Gdp Growth Rate ◽  
Per Capita ◽  
Bounds Test

Conflicts in the form of civil war, ethnic tensions and political discord are of enduring concern and a major bottleneck to economic development in Sri Lanka. Three decades of civil war and unethical political culture have caused severe economic problems for the country, including slower rate of growth and a huge defence expenditure. The aim of this study is to examine the effect of military expenditure and conflict on per capita GDP growth rate in Sri Lanka from 1973 to 2014 using the Solow growth model and ARDL bounds test approach. The results of the bounds test are highly significant and lead to cointegration. The negative and significant coefficients of the error correction term illustrate the expected convergence process in the long-run dynamic of per capita GDP. The estimated empirical results show that, the coefficients of military expenditure and conflict are negative and statistically significant in the short-run as well as in the long-run in determining per capita GDP growth rate in Sri Lanka. Hence, it is critically important to take necessary action to decrease military expenditure and provide an efficient political solution to the problem of minorities, specifically in the post-war period.

scholarly journals A Panel Data Study of the Effects of Economic Freedom, Regulatory Quality, and Taxation on the Growth Rate of Per Capita Real GDP

2012 ◽  
Vol 30 (1) ◽  
pp. 103-122
Author(s):  
Richard J. Cebula ◽  
Maggie Foley
Keyword(s):  
Growth Rate ◽  
Fixed Effects ◽  
Economic Freedom ◽  
Government Regulation ◽  
The Third ◽  
Real Gdp ◽  
Regulatory Quality ◽  
Gdp Growth Rate ◽  
Per Capita ◽  
The Cost

Abstract This study empirically investigates three hypotheses. The first is that higher levels of economic freedom in an economy promote a higher growth rate of economic activity and hence yield a higher growth rate of per capita real GDP in that economy. The second hypothesis is that higher quality government regulation leads to a more efficient economic system, in large part by interfering less with market functioning and in part by not adding unnecessarily to the cost of conducting business in the marketplace, and thereby leads to a higher per capita real GDP growth rate. The third hypothesis is that the higher the taxation level/burden relative to GDP in an economy, the lower the growth rate of private sector spending and hence the lower the growth rate of per capita real GDP in that economy. Using a panel dataset for OECD nations over the 2003 through 2006 period, fixed effects PLS estimations find compelling evidence in support of all three of these hypotheses.

scholarly journals Le taux de croissance de l’offre de monnaie et arbitrage entre le taux d’inflation et le taux de chômage au Canada

2009 ◽  
Vol 55 (3) ◽  
pp. 397-410
Author(s):  
Maurice N. Marchon
Keyword(s):  
Growth Rate ◽  
International Trade ◽  
Exchange Rate ◽  
Money Supply ◽  
Unemployment Rate ◽  
Output Growth ◽  
Real Output ◽  
Short Term ◽  
Trade Off ◽  
The Exchange Rate

This paper presents simulations results using a "Modified St. Louis Model" for Canada. These simulations identify opportunities of trade-off between inflation and unemployment rate. They reveal very slim opportunities of trade-off and demonstrate that any short-term gain in real output caused by monetary stimulus will have to be paid in term of compensating slower output growth to reduce inflationary expectations. This situation of no real trade-off shows up even if the model does not fully endogenize the exchange rate and international trade feedback of changes in money supply growth rate.

scholarly journals Impact of Foreign Exchange Rate and Inflation Rate on the Economic Growth of India

2019 ◽  
Vol 8 (4) ◽  
pp. 4333-4335
Keyword(s):  
Growth Rate ◽  
Exchange Rate ◽  
Foreign Exchange ◽  
Inflation Rate ◽  
Linear Regression Analysis ◽  
Foreign Exchange Rate ◽  
Gdp Growth ◽  
Economic Progress ◽  
Gdp Growth Rate ◽  
The Impact

This paper tries to investigate the impact of foreign exchange rate and inflation rate on the economic progress of India. In this study the economic progress has been measured by annual GDP ( Gross Domestic Product ) growth in India. Correlation analysis and multiple regression model have been designed to explore the relationship among the mentioned three variables. The annual GDP growth of India has been considered as the dependent variable and the other two macroeconomic variables ( Foreign exchange rate and inflation rate ) have been considered as the independent variables. Secondary sources of data have been gathered to arrive at a logical conclusion. The results show a positive correlation between GDP growth rate and the foreign exchange rate and a negative correlation between the GDP growth rate and the inflation rate. Results from the linear regression analysis show that inflation rate has a strong influence or impact on the GDP growth rate than the foreign exchange rate. It is expected that the present study will help the policy makers and the researchers to understand the impact of foreign exchange rate and inflation rate on the GDP growth in India

scholarly journals Impacts of Macroeconomic Variables on the Stock Market Returns of South Asian Region

2020 ◽  
pp. 24-34 ◽  
Keyword(s):  
Growth Rate ◽  
Exchange Rate ◽  
Stock Market ◽  
Inflation Rate ◽  
Foreign Currency ◽  
Currency Reserve ◽  
Gdp Growth ◽  
Market Returns ◽  
Stock Market Returns ◽  
Gdp Growth Rate

This paper is intended to find out whether macroeconomic variables may impact on the stock market as well as whether such impact has any country specific pattern. The stock market return was taken as the dependent variable and real interest rate, inflation rate, GDP growth rate, foreign currency reserve growth rate, fiscal deficit, FDI to GDP ratio, exchange rate were taken as independent variables. Data-set was covered from 1993 to 2019 for five South Asian countries which were Bangladesh, India, Pakistan, Sri Lanka, and Nepal. The pattern of the stock market, as well as macro conditions of these countries, was observed and it was found that some relationships exist between the stock market returns and these chosen independent variables. Unit root test, Heteroscedasticty test, autocorrelation test, Hausman test is conducted to authenticate and clarified data to investigate relationship nature. Granger Casualty test indicated that there exist cause and effect relationship between GDP growth rate, exchange rate, and stock market returns. Finally, the regression test reveals that the inflation rate and foreign currency reserve growth rate have a significant impact on the stock market returns. It was expected to have the unique nature of different countries having versatile impact on dependent, so additionally fixed effects model and random effects model were run and it was found that the random effects model is statistically appropriate through conducting the Hausman test. The test reveals that GDP growth rate, foreign currency reserve growth rate, and fiscal deficit positively impact the stock market returns and these also support the literature review. Interest rates, inflation rate, FDI to GDP ratio, and exchange rate have negatively impacted the stock market return where only interest rate, inflation rate & exchange rate.

scholarly journals Macroeconomic factors, firm characteristics and financial performance

2018 ◽  
Vol 3 (2) ◽  
pp. 142-168 ◽  
Author(s):  
Chinedu Francis Egbunike ◽  
Chinedu Uchenna Okerekeoti
Keyword(s):  
Growth Rate ◽  
Exchange Rate ◽  
Financial Performance ◽  
Inflation Rate ◽  
Manufacturing Firms ◽  
Gdp Growth ◽  
Firm Characteristics ◽  
Macroeconomic Factors ◽  
Content Type ◽  
Gdp Growth Rate

Purpose The purpose of this paper is to explore the interrelationship between macroeconomic factors, firm characteristics and financial performance of quoted manufacturing firms in Nigeria. Specifically, the study investigates the effect of interest rate, inflation rate, exchange rate and the gross domestic product (GDP) growth rate, while the firm characteristics were size, leverage and liquidity. The dependent variable financial performance is measured as return on assets (ROA). Design/methodology/approach The study used the ex post facto research design. The population comprised all quoted manufacturing firms on the Nigerian Stock Exchange. The sample was restricted to companies in the consumer goods sector, selected using non-probability sampling method. The study used multiple linear regression as the method of validating the hypotheses. Findings The study finds no significant effect for interest rate and exchange rate, but a significant effect for inflation rate and GDP growth rate on ROA. Second, the firm characteristics showed that firm size, leverage and liquidity were significant. Practical implications The study has implications for regulators and policy makers in formulating policy decisions. In addition, managers may better understand the interplay between macroeconomic factors, firm characteristics and profitability of firms. Originality/value Few studies have addressed the interplay of macroeconomic factors and firm characteristics in determining the profitability of manufacturing firms in the country and developing countries in general.

Comparison of Socio Economic Development of Tarai and Nepal

2020 ◽  
Vol 3 (1) ◽  
pp. 67-76
Author(s):  
Dipak Duvey
Keyword(s):  
Growth Rate ◽  
Economic Development ◽  
Capita Income ◽  
Gdp Growth ◽  
Socioeconomic Indicators ◽  
Per Capita Income ◽  
Literacy Rate ◽  
Gdp Growth Rate ◽  
Socio Economic Development ◽  
Per Capita

The comparison of socio economic development of Tarai and Nepal is the comparison of development of total Nepal with its southern part Tarai. Socio economically southern belt of Nepal, Tarai is leading whole Nepal in development. There are not any significant impacts of conflicts of Tarai in one and half decade, in socio economic development of rural development of Tarai. The comparative study has selected timeline of 2004, 2011 and 2019 to collect and analyze the socioeconomic indicators based on data of Central Bureau of Statistics (CBS Data). It is the study of literacy rate, access to electricity, GDP Growth rate and Per capita income of Nepal and Tarai region in different point of time of conflicts and resiliencies. The literacy rate was 55%, 65%, and72% in Tarai and 49%, 60% and 69% in Nepal; access to electricity were 40%, 78% and 95% in Tarai and 37%, 65% and 96% in Nepal. Similarly, Gross Domestic Product (GDP) Growth rate was 5%, 5% and 7.2% in Tarai and 4.7 %, 3.4%, and 7.1% in Nepal; Per capita income in USD was 300, 629 and 1100 in Tarai and 286, 610, and 1034 in Nepal from 2004, 2011, and 2019respectively. Therefore, Tarai is leading Nepal in socio economic development.

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