scholarly journals The Effects of Global Interaction on Poverty in Developing Countries, 1991-2005

2012 ◽  
pp. 236-265
Author(s):  
Jason Hall ◽  
Loretta Bass
Keyword(s):  
Developing Countries ◽  
Poverty Reduction ◽  
Trade Openness ◽  
Negative Relationship ◽  
Domestic Investment ◽  
Poverty Level ◽  
Random Effects Models ◽  
Extreme Poverty ◽  
Non Governmental Organizations ◽  
The Impact

While previous studies have examined the impact of globalization on a myriad of welfare outcomes in developing countries, the effect of cross-national exchanges on extreme poverty remains unexplored. Poverty has declined substantially during this most recent wave of globalization, suggesting that cross-border relations may be partially responsible. We test this proposition by estimating the impact of foreign direct investment (FDI), trade openness, and the presence of international non-governmental organizations (INGOs) on poverty, measured at both the $1.25-a-day (extreme poverty) level, and the $2.50-a-day (moderate poverty) level, net of domestic conditions. Using a sample of 114 developing countries over five waves of data collected from 1991 to 2005, results from random effects models show that FDI exhibits a positive relationship with poverty at the $1.25 and $2.50 levels, while trade openness demonstrates a negative relationship with both extreme and moderate poverty. Once domestic conditions are controlled, INGO participation fails to demonstrate a significant effect on poverty at either level. Among domestic variables, economic growth and fertility rate affect poverty at the $1.25 level, while growth and domestic investment demonstrate an effect at the $2.50 level. These findings confirm that global interaction by poor countries influences poverty reduction within these countries, but in different directions.

scholarly journals The Impact of Foreign Direct Investment on Poverty Reduction in the Developing Countries

2017 ◽  
Vol 4 (2) ◽  
pp. 92
Author(s):  
Yaser Ahmad Arabyat
Keyword(s):  
Developing Countries ◽  
Poverty Reduction ◽  
Foreign Firms ◽  
Crowding Out ◽  
Domestic Investment ◽  
Local Production ◽  
Foreign Investments ◽  
Playing Field ◽  
Negative Effect ◽  
The Impact

The aim of this study is to choose and estimate the effect of foreign investments in engine for economic growth and hence poverty reduction in the developing countries. The study concluded that there is a weak effect of non-moral of foreign investments on decreasing unemployment in the developing countries, regardless of the existence or absence of development. In addition, the study concluded with a negative effect for the total local production on unemployment and poverty. Finally, we concluded that this may be a result of profit repatriation of foreign firms, crowding out of domestic investment because of FDI or low level of human capital in the country.Consequently, the study recommended to despite how desirable the inflow of FDI is to developing countries, care should be taken when attracting foreign investments and they should be directed to the productive sectors of the economy. Also government should create a competitive environment so as to maximize the benefits of FDI because by exposing foreign investors to an even playing field with indigenous investors.

scholarly journals The impact of taxes effects on the economic growth of developing countries in ASIA

2020 ◽  
Author(s):  
Văn Thuận Nguyễn ◽  
Xuân Hằng Trần ◽  
Minh Hằng Nguyễn ◽  
Thị Kim Chi Ng
Keyword(s):  
Economic Growth ◽  
Developing Countries ◽  
Method Of Moments ◽  
Positive Impact ◽  
Trade Openness ◽  
Generalized Method Of Moments ◽  
Negative Relationship ◽  
Estimation Methods ◽  
Policy Suggestions ◽  
The Impact

The objective of the study is to examine the impact of taxes on economic growth in developing countries in Asia during 18-year period (2000-2017). Using the estimation methods of OLS, FEM, REM, GLS and two-step system generalized method of moments (S-GMM) for panel data. Empirical results show that taxation has a positive impact on economic growth at level of 1%, while the most studies consider this to be a negative relationship. Besides, factors such as government spending, trade openness, inflation also have a significant impact on economic growth. On that basis, the study provides some policy suggestions for tax policies in these countries.

Trade openness and economic growth in the Asian region

2014 ◽  
Vol 7 (3) ◽  
pp. 136-152 ◽  
Author(s):  
Muhammad Tahir ◽  
Imran Khan
Keyword(s):  
Economic Growth ◽  
Developing Countries ◽  
Least Squares Method ◽  
Trade Openness ◽  
Domestic Investment ◽  
Content Type ◽  
Asian Region ◽  
Long Run ◽  
The Impact ◽  
Determinants Of Economic Growth

Purpose – This paper aims to focus on the Asian developing countries to examine the impact of trade openness on economic growth. Design/methodology/approach – Empirical analysis is carried out with the help of panel econometric techniques and two-stages least squares method. Findings – The results show that trade openness has contributed significantly to the growth process of the developing countries located in the Asian region. It is also found that domestic investment has influenced economic growth for the sampled countries. Further, the results show that human capital has adversely affected economic growth despite the fact that different proxy variables are used. Research limitations/implications – No positive relationship between education and economic growth could be established despite using different measures of education. However, this issue has been brought to the attention of researchers for further investigation. Practical implications – Developing countries located in the Asian region, therefore, are suggested to speed up the process of trade liberalization and also pay favourable attention to other determinants of economic growth to accelerate long-run economic growth. Originality/value – The results presented in the paper are original. Some insights about the impact of education on economic growth have been highlighted.

Human capital and economic growth in OECD countries: some new insights

2020 ◽  
Vol 36 (4) ◽  
pp. 367-380
Author(s):  
Muhammad Tahir ◽  
Arshad Hayat ◽  
Kashif Rashid ◽  
Muhammad Asim Afridi ◽  
Yasir Bin Tariq
Keyword(s):  
Economic Growth ◽  
Developing Countries ◽  
Human Capital ◽  
Trade Openness ◽  
Working Hours ◽  
Oecd Countries ◽  
Domestic Investment ◽  
Employment Level ◽  
Content Type ◽  
The Impact

PurposeThe new growth literature in general is very optimistic about the positive impact that human capital has on the economic growth of countries. Based on this argument, the current paper focusses to investigate the impact of different types of human capital on economic growth.Design/methodology/approachThe paper utilizes data for the period 1998 to 2017 and employs suitable econometric techniques.FindingsIt is found that it is not the stock of human capital rather its utilization in terms of average working hours that matters for higher growth. Other than human capital, trade openness and investment are positively associated with growth. On the other hand, inflation has an insignificant impact while employment level has a negative impact on growth. Moreover, for developing countries, the study also revealed that stock of human capital has negatively and average working hours has positively impacted economic growth. Finally, domestic investment and employment level appeared to be the main growth determinants in developing countries.Research limitations/implicationsPolicymakers are suggested to ensure the maximum utilization of working hours, trade openness and domestic investment in improving economic growth in OECD countries.Originality/valueThis study has visualized the impact of human capital on economic growth from a new perspective and hence would be useful for policymakers.

scholarly journals The Impact of Working Capital Management on Profitability: The Case of Small and Medium-Sized Export Companies in Tunisia

2011 ◽  
Vol 15 (3) ◽  
pp. 71-88 ◽  
Author(s):  
Meryem Bellouma
Keyword(s):  
Negative Relationship ◽  
Capital Management ◽  
Working Capital ◽  
Working Capital Management ◽  
Random Effects Models ◽  
Accounts Receivable ◽  
Cash Conversion Cycle ◽  
Fixed And Random Effects ◽  
Financial Decision ◽  
The Impact

Working capital is an important component in the financial decision of the company. An optimal working capital management is reached through a trade off between profitability and liquidity. This study aims to provide empirical evidence about the effects of working capital management on the profitability of 386 Tunisian export SMEs observed from 2001 to 2008. The results of fixed and random effects models show a negative relationship between corporate profitability and the different working capital components. This reveals that Tunisian export SMEs should shorten their cash conversion cycle by reducing the number of days of accounts receivable and inventories to increase their profitability.

scholarly journals Foreign Lending Dilemma and Poverty in Pakistan, India and Bhutan: A Panel Data Analysis

2017 ◽  
Vol 3 (1) ◽  
pp. 39-46
Author(s):  
Mariam Abbas Soharwardi ◽  
Hina Ali ◽  
Mujahid Ali
Keyword(s):  
Developing Countries ◽  
World Bank ◽  
Structural Adjustment ◽  
Poverty Reduction ◽  
Panel Data Analysis ◽  
Bank Lending ◽  
Structural Adjustment Programs ◽  
Foreign Lending ◽  
The Impact ◽  
Adjustment Programs

Purpose: In developing countries foreign lending becomes a problem now a day instead of spend this lending for the development purposes. Ultimately this problem causes poverty in these countries where usage of foreign lending is not in proper ways. The purpose of this study is to investigate the impact of IMF and World Bank lending on poverty in Pakistan, India and Bhutan. In this study corruption, GDP, unemployment, secondary enrolment, and external debt are used as independent variables and poverty headcount ratio as dependent variable. Study finds out the relationship of corruption, unemployment and external debts with poverty and showing the positive relationship while secondary enrolment and GDP showing negative relation with poverty. Moreover study finds out that lending of IMF and WORLD BANK mostly causes poverty in these developing countries instead of reducing poverty because of corrupt government's weak policies for the distribution of loans. It is examined that the countries with strong policies and non-corrupt government can take full advantage of these lending for poverty reduction. But it is noticed that the countries which are the members of IMF structural adjustment programs are facing more poverty problems as compare to those countries which are not involved in these programs or even have less numbers of lending. Those countries are much better than the countries involve in structural adjustment programs.

ANALYSIS AND PROSPECTS FOR IMPLEMENTATION OF THE INVESTMENT LIBERALIZATION REGIME IN THE WORLD ECONOMY

2021 ◽  
pp. 99-109
Author(s):  
Shokhrukh B. Akhmedov ◽  
◽  
Vladimir M. Kutovoi ◽  
Keyword(s):  
Developing Countries ◽  
Economic Development ◽  
World Economy ◽  
Trade Openness ◽  
Economic Policies ◽  
Foreign Companies ◽  
The World ◽  
Local Sources ◽  
Political Conditions ◽  
The Impact

The article assesses a significance of the most important component of the agreement on accession to the WTO, namely the agreement on trade-related investment measures (TRIMs), in increasing the attractiveness of developing countries to investors from abroad. In addition, traditional determinants of FDI placement, such as the macroeconomic stability, trade openness, and economic development, are considered. The authors carry out an analysis in the field of regulation of TRIMs by the example of economic policies in developing countries. The study shows that the extent to which TRIMs contributed to achieving the goals varied significantly, reflecting the specific economic and political conditions of the country using them. In some cases, they played a role in encouraging foreign companies to make more use of local sources or increase their exports from the host country. In other cases, the impact seemingly was negligible.

scholarly journals European intellectual property institutions and Chinese foreign direct investment

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Constantinos Alexiou ◽  
Sofoklis Vogiazas
Keyword(s):  
Foreign Direct Investment ◽  
Intellectual Property ◽  
Direct Investment ◽  
Trade Openness ◽  
Negative Relationship ◽  
Preliminary Evidence ◽  
Institutional Distance ◽  
Content Type ◽  
Chinese Foreign Direct Investment ◽  
The Impact

PurposeWe investigate the impact of the strength of intellectual property (IP) institutions on Chinese outward foreign direct investment (OFDI).Design/methodology/approachWe use two different measures of IP on a sample of 21 European countries in the period 2003–2015. Panel quantile methodology is applied to assess the relationship at several points of the conditional distribution of OFDI.FindingsWe provide novel and robust evidence revealing a highly negative relationship between OFDI and the strength of IP institutions in Europe. This relationship which is more pronounced in the median and upper-quantiles, bolsters the conventional theoretical expectation that high institutional distance between home and host countries is inversely related to OFDI. Equally important is the preliminary evidence of the non-linear impact of IP at the median and upper-quantiles as well as the impact of other controlling variables such as GDP, population, trade openness and unit labour costs on Chinese OFDI.Originality/valueThe ensuing theoretical implications are of great significance for future studies on the institutional distance and drivers of OFDI by emerging economies as well as for European policymakers in so far as the strengthening of IP institutions constitutes a gravitational point for inward investment flows from China.

scholarly journals The impact of social media on the performance of microfinance institutions in developing countries: a quantitative approach

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ahmad Daowd ◽  
Muhammad Mustafa Kamal ◽  
Tillal Eldabi ◽  
Ruaa Hasan ◽  
Farouk Missi ◽  
...  
Keyword(s):  
Social Media ◽  
Developing Countries ◽  
Performance Indicators ◽  
Financial Services ◽  
Microfinance Institutions ◽  
Poverty Level ◽  
Content Type ◽  
Media Platform ◽  
Media Applications ◽  
The Impact

PurposeOver the last few decades, microfinance industry is argued to have played a constructive role in alleviating poverty level and providing the underprivileged with access to financial services. Statistics from the World Bank reveal that, currently, only 4% of the underprivileged have been served out of the 3 billion+ potential clients. Such results are due to several claims, particularly the operational and financial challenges faced by microfinance institutions (MFIs) in the constant flux inviting more attentions towards its performance. While explicit attention is given by many researchers towards mobile banking and information and communication technology (ICT) in improving the MFIs’ performance, the study on how social media, as a rapidly growing online phenomenon, can impact on the MFIs’ performance remains scarce. As such, this study aims to investigate this impact based on four dimensional performance indicators: efficiency, financial sustainability, portfolio quality and outreach.Design/methodology/approachA model is proposed and tested to ascertain the relationship between social media applications and organisational performance. In so doing, web-based questionnaires have been used to collect data from MFI employees in developing countries. Results reveal a significant influence of the social media over the MFIs’ performance, offering valuable insights into both researchers and practitioners in the domain of microfinance, as well as social media—conforming that the adoption of social media as marketing, advertising and communication tools may significantly improve the MFIs’ performance.FindingsThe results demonstrate that there is a positive and significant impact of social media use within microfinance on the key indicators of MFIs. They also show that the highest impact of social media usage within the microfinance is on the portfolio quality. In addition, it was found that marketing and advertising; communication and sales and distribution are the main areas where social media is able to support while social networking websites are the most popular platforms employed in MFIs.Originality/valueThis study adds to the existing literature few theoretical and practical aspects. First, this study developed a model for assessing the value of social media as a new phenomenon within this type of organisation. Second, it offers microfinance sponsors, managers and policy makers with a frame of reference to understand what social media platform can be deployed for each purpose. Third, with the identification of the main MFIs’ performance indicators, this research provided a reference of performance measurement guide for microfinance industry when assessing different technological employment.

scholarly journals Impact of Trade Liberalization on Economic Growth of Nepal

2019 ◽  
Vol 8 ◽  
pp. 136-148
Author(s):  
Ramesh Bahadur Khadka
Keyword(s):  
Economic Growth ◽  
Developing Countries ◽  
Gross Domestic Product ◽  
Trade Liberalization ◽  
World Bank ◽  
Trade Balance ◽  
Trade Openness ◽  
Domestic Product ◽  
Total Trade ◽  
The Impact

Trade openness has been considered as an important determinant of economic growth. It has been witnessed during the past couple of decades that international trade openness has played a significant role in the growth process of both developed and developing countries. International organizations such as Word Trade Organization, International Monetary Fund and World Bank are constantly advising, especially developing countries, to speed up the process of trade liberalization to achieve high economic growth. In this context, this paper aims to analyze the impact of trade liberalization on economic growth of Nepal. For this purpose, all the data regarding gross domestic product, export, import, total trade, trade balance of Nepal from 1980 A.D. to 2013 A.D. published by World Bank (2014) were used. Both descriptive as well as inferential statistics were used to analyze the data. Correlation analysis was used to find the correlation between the selected variables. Multiple linear regression analysis was carried out to analyze the impact of the trade liberalization in economic growth of Nepal. Trade cost does not explain any influence in gross domestic product, export, import, total trade and trade balance. The impact of trade openness is positive for all variables except trade balance. Trade openness has influenced economy significantly; import increased with purchasing power, export also increased but service only. Therefore, there is gap in export and imports.

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