scholarly journals The Effect of Polarization on Economic Growth, Social Capital, and Democracy: A Cross-Country Study

2020 ◽  
Vol 6 (1) ◽  
pp. 42
Author(s):  
Maham Zahra Mehdi ◽  
Danish Ahmed Siddiqui
Keyword(s):  
Economic Growth ◽  
Social Capital ◽  
Developing Countries ◽  
Developed Countries ◽  
Political Polarization ◽  
Least Developed Countries ◽  
Global Issues ◽  
Negative Effect ◽  
Cross Country ◽  
Democracy And Education

In the last decade, one of the biggest global issues that have been debated upon is whether increased rates of migration, diversity, and political polarization stemming from these factors have any impact on the economic growth of countries. Accordingly, this paper explores the effect of polarization on democracy, social capital, education, and economic growth in a cross-country analysis involving developed countries, developing countries, and the least developed countries. A bilateral time series analysis was conducted by treating each country-set in isolation, as well as a group and focusing on the period 2009 to 2018. According to our results, polarization appears to have a negative effect on the economic growth of developing countries. The same results were observed when we analyzed all the countries collectively. An inverse relationship was also established between polarization and social capital in developed countries. Meanwhile, polarization does not have any significant impact on democracy and education for any of the countries under study. It was also determined that when treated independently, democracy, social capital, education, and GDP per capita all appear to have a varying yet negative effect on polarization.

scholarly journals Leveraging on the Urban Economy to Promote the Growth of Women-Owned Small Businesses in Bangladesh

2021 ◽  
Vol 3 (1) ◽  
pp. 15-23
Author(s):  
Nusrat Hafiz ◽  
Ahmad Shaharudin Abdul Latiff ◽  
Sazali Abd Wahab
Keyword(s):  
Economic Growth ◽  
Social Capital ◽  
Developing Countries ◽  
Human Capital ◽  
Small Businesses ◽  
Urban Economy ◽  
Developed Countries ◽  
The City ◽  
Research Domain

Purpose: The contribution of small businesses to a country’s economic growth is vital. It makes sense to accentuate the small businesses by emphasizing the neglected segments. The present study aims to explore the women-owned small businesses (WOSB) and their various problems. The study also examines if the city-based features of the urban economy can be favorable to promote the growth of WOSB. Methods: The concept paper conducts secondary research by selecting sample literature on WOSB of Bangladesh from the manufacturing, and trading sectors.  The selection and classification of extant literature were conducted by emphasizing problems faced by WOSB, and the city-based amenities of developing countries. The extracted information is analyzed by categorizing and interpreting relevant issues to create a base-model of venture-growth. Results: Based on the literature review, a growth-framework is formulated that reflects the issues faced by WOSB categorized as financial illiteracy, inadequate human capital, insufficient social capital, and business environmental hiccups. Also, the substandard growth of WOSB is envisaged in the model if the problems are not addressed timely. The study also discovers that the urban economy could be leveraged to make these issues less coercing for the women owners. Implications: The paper creates a nexus with the WOSB and the privileges of urban platforms to ensure better growth of the firms. Originality:  As far as authors could determine, the aimed research-domain was mostly covered from the perspectives of developed countries, rarely covered in the context of developing countries, and almost absent in Bangladesh. This paper attempts to fulfill that gap.

Does Poverty Matter for Tax Revenue Performance in Developing Countries?

2021 ◽  
pp. 227797872110335
Author(s):  
Sèna Kimm Gnangnon
Keyword(s):  
Developing Countries ◽  
Developed Countries ◽  
Jel Classification ◽  
Development Aid ◽  
Tax Revenue ◽  
Least Developed Countries ◽  
Data Set ◽  
Performance Effect ◽  
Generalized Methods Of Moments ◽  
Negative Effect

This article explores the effect of poverty on tax revenue performance (tax revenue share), using an unbalanced panel data set of 102 developing countries over the period from 1996 to 2015. Based on the two-step system generalized methods of moments (GMM) approach, the empirical analysis shows that higher poverty rates significantly reduce tax revenue performance in developing countries. However, the magnitude of this negative effect is lower in least developed countries (LDCs) than in other countries of the sample. The analysis has also revealed that the tax revenue performance effect of poverty depends on the level of household consumption as well as the prevailing unemployment rate in the economy. Finally, development aid inflows help to mitigate the negative effect of poverty on tax revenue performance in developing countries. These findings not only highlight the importance of poverty for tax revenue performance in developing countries, but they additionally show that the provision of higher amounts of development aid to these countries could help them mitigate the adverse tax revenue effect of poverty, and even allow them to enjoy higher tax revenue performance, which is key for attaining their development objectives. JEL Classification: I30, I32, H20

Growth and Social Capital: Empirical Analysis of the Relationship

2019 ◽  
pp. 128-134
Author(s):  
Ksenia V. Bagmet
Keyword(s):  
Economic Growth ◽  
Social Capital ◽  
Economic Development ◽  
Social Development ◽  
Empirical Analysis ◽  
Panel Data Analysis ◽  
Well Being ◽  
Developed Countries ◽  
International Institute ◽  
Level Of Economic Development

The article provides an empirical test of the hypothesis of the influence of the level of economic development of the country on the level of development of its social capital based on panel data analysis. In this study, the Indices of Social Development elaborated by the International Institute of Social Studies under World Bank support are used as an indicators of social capital development as they best meet the requirements for complexity (include six integrated indicators of Civic Activism, Clubs and Associations, Intergroup Cohesion, Interpersonal Safety and Trust, Gender Equality, Inclusion of Minorities), comprehensiveness of measurement, sustainability. In order to provide an empirical analysis, we built a panel that includes data for 20 countries divided into four groups according to the level of economic development. The first G7 countries (France, Germany, Italy, United Kingdom); the second group is the economically developed countries, EU members and Turkey, the third group is the new EU member states (Estonia, Latvia, Lithuania, Romania); to the fourth group – post-Soviet republics (Armenia, Georgia, Russian Federation, Ukraine). The analysis shows that the parameters of economic development of countries cannot be completely excluded from the determinants of social capital. Indicators show that the slowdown in economic growth leads to greater cohesion among people in communities, social control over the efficiency of distribution and use of funds, and enforcement of property rights. The level of tolerance to racial diversity and the likelihood of negative externalities will depend on the change in the rate of economic growth. Also, increasing the well-being of people will have a positive impact on the level of citizens’ personal safety, reducing the level of crime, increasing trust. Key words: social capital, economic growth, determinant, indice of social development.

Analysis of Major Problems Faced by Small Firms in North India

2015 ◽  
Vol 15 ◽  
pp. 150-160
Author(s):  
Davinder Singh ◽  
Jaimal Singh Khamba ◽  
Tarun Nanda
Keyword(s):  
Economic Growth ◽  
Developing Countries ◽  
Economic Development ◽  
Small Firms ◽  
Small And Medium Enterprises ◽  
Developed Countries ◽  
North India ◽  
Small Enterprises ◽  
Employment Generation ◽  
Medium Enterprises

Micro, Small and Medium Enterprises (MSMEs) have been noted to play a significant role in promoting economic growth in less developed countries, developing and also in developed countries. Worldwide, the micro and small enterprises have been accepted as the engine of economic growth of any nation. Small and Medium Enterprises are the backbone of the economies, because it trigger employment, output, export, poverty alleviation, economic empowerment, economic development etc. in developed as well as in developing countries. It is more important to developing countries as the poverty and unemployment are burning problems. MSMEs have been playing a momentous role in overall economic development of a country like India where millions of people are unemployed or underemployed. Therefore, the growth of small sectors is essential for the growth in the GDP, employment generation, total manufacturing production and export. India, being one of the fastest growing economies of the world, needs to pay an honest attention for the utmost growth of MSMEs for its increased contribution in above areas.

scholarly journals How Do Budget Deficits and Economic Growth Affect Reelection Prospects? Evidence from a Large Panel of Countries

2008 ◽  
Vol 98 (5) ◽  
pp. 2203-2220 ◽  
Author(s):  
Adi Brender ◽  
Allan Drazen
Keyword(s):  
Economic Growth ◽  
Developing Countries ◽  
Fiscal Policy ◽  
Growth Rates ◽  
Electoral System ◽  
Developed Countries ◽  
Economic Conditions ◽  
New Democracies ◽  
Budget Deficits ◽  
Large Panel

We test whether good economic conditions and expansionary fiscal policy help incumbents get reelected in a large panel of democracies. We find no evidence that deficits help reelection in any group of countries independent of income level, level of democracy, or government or electoral system. In developed countries and old democracies, deficits in election years or over the term of office reduce reelection probabilities. Higher growth rates over the term raise reelection probabilities only in developing countries and new democracies. Low inflation is rewarded by voters only in developed countries. These effects are both statistically significant and quite substantial quantitatively. (JEL D72, E62, H62, O47)

scholarly journals Development Aid, Economic Growth Volatility and Poverty Volatility in Developing Countries

2021 ◽  
Vol Volume II (December 2021) ◽  
pp. 1-15
Author(s):  
Sèna Kimm GNANGNON
Keyword(s):  
Economic Growth ◽  
Developing Countries ◽  
Development Aid ◽  
Negative Effect ◽  
Growth Volatility

This article has analysed the effect of development aid flows on poverty volatility in developing countries, including through the economic growth volatility channel. Using a sample of 106 countries over the period 1980-2017, and the two-step system Generalized Methods of Moment (GMM) technique, the analysis has shown that development aid flows dampen the positive poverty volatility effect of economic growth volatility: the magnitude of the negative effect of development aid on poverty volatility rises as the degree of economic growth volatility increases. Additionally, development aid exerts a higher negative effect on poverty volatility as countries face higher poverty rates. These findings highlight the importance of development aid for stabilizing poverty rates.

scholarly journals Bringing the Military Back in: Military Expenditures and Economic Growth 1990 to 2003

2008 ◽  
pp. 142-172 ◽  
Author(s):  
Jeffrey Kentor ◽  
Edward Kick
Keyword(s):  
Economic Growth ◽  
National Development ◽  
Military Spending ◽  
Developed Countries ◽  
Less Developed Countries ◽  
Least Developed Countries ◽  
Military Organizations ◽  
Military Expenditures ◽  
Military Institution ◽  
The Military

After the “peace bonus” era, global military expenditures have escalated sharply despite some worldwide declines in military personnel. Theories on the economic impacts of the military institution and escalated military spending greatly differ and include arguments that they either improve domestic economic performance or crowd out growth-inducing processes. Empirical findings on this matter are inconclusive, in part due to a failure to disentangle the various dimensions of military expenditures. We further suggest that modern sociology's relative inattention to such issues has contributed to these shortcomings. We explore a new dimension of military spending that clarifies this issue—military expenditures per soldier —which captures the capital intensiveness of a country’s military organization. Our cross-national panel regression and causal analyses of developed and less developed countries from 1990 to 2003 show that military expenditures per soldier inhibit the growth of per capita GDP, net of control variables, with the most pronounced effects in least developed countries. These expenditures inhibit national development in part by slowing the expansion of the labor force. Labor-intensive militaries may provide a pathway for upward mobility, but comparatively capital-intensive military organizations limit entry opportunities for unskilled and under- or unemployed people. Deep investments in military hardware also reduce the investment capital available for more economically productive opportunities. We also find that arms imports have a positive effect on economic growth, but only in less developed countries.

scholarly journals PERAN STRATEGIS PENERAPAN KONSEP SISTER CITY DALAM MENCIPTAKAN SURABAYA GREEN-CITY

2018 ◽  
Vol 2 (1) ◽  
pp. 144-151
Author(s):  
Inggang Perwangsa Nuralam
Keyword(s):  
Economic Growth ◽  
Developing Countries ◽  
Urban Areas ◽  
Developed Countries ◽  
City Development ◽  
Rapid Population Growth ◽  
Good Practices ◽  
Environmentally Sound ◽  
Complex Activities ◽  
Green City

Indonesia has many big cities with dynamic urbanization trend, increased economic growth and activities, rapid population growth, and dense populations such as Jakarta, Bandung, Medan, Surabaya and Balikpapan. As a result, the complex activities of people in urban areas need space and these needs cause environmental degradation, such as the practice of throwing garbage that is not in place. To prevent this in the future, it is important for developing countries like Indonesia to have benchmarks. Benchmarks for developing countries can come from developed countries. So far inter-city development usually has partnerships with cities abroad, including the sister city concept. Sister city practices can be used by cities in Indonesia for the development of good practices. The collaboration of Surabaya (Indonesia) with Kitakyushu (Japan) focuses a lot on creating urban planning that is environmentally sound or commonly known as green city or eco-city.

scholarly journals Migration and Its Impact on Sustainable Development

2021 ◽  
Vol 8 (1) ◽  
pp. 55
Author(s):  
Muslih Faozanudin ◽  
Shainima Islam
Keyword(s):  
Sustainable Development ◽  
Developing Countries ◽  
International Migration ◽  
Secondary Data ◽  
Developed Countries ◽  
Industrialized Countries ◽  
Population Mobility ◽  
Least Developed Countries ◽  
Skilled Workers ◽  
The Impact

People’s mobility and international migration are quite interesting phenomena to discuss. Until now, there are still differences in views between industrialized countries and developing countries regarding the contribution of migration to development for both sending and receiving countries. This paper aims to analyze based on existing secondary data the linkage between migration and sustainable development. For analysis, this study uses a descriptive approach, with secondary data as the primary source. The analysis found that both sending and receiving countries - benefited from population mobility and international migration. The least developed countries in the economy and overall infrastructure are supplying countries for this migration process, and increasing remittances and skilled workers to help other countries. Although it is realized that this condition is the impact of the weak economic system of developing countries on the one hand and the demographic that occur in advanced industrialized countries on the other. To maintain the stability of the supply chain for economic development, international migration is included as one of the sustainable development programs that apply more humane values. Therefore, migrants should be seen as potential contributors to the growth of sending and receiving countries, and some even claim that they are heroes of foreign exchange. Keywords:  migration, remmitance, sustainable development Mobilitas masyarakat dan migrasi internasional merupakan fenomena yang cukup menarik untuk dibahas. sampai saat ini masih terdapat perbedaan pandangan antara negara industri dan negara berkembang, tentang  kontribusi migrasi terhadap  pembangunan, baik  bagi negara yang asal migrant maupun bagi negara penerima. Makalah ini bertujuan untuk menganalisis berdasarkan data sekunder yang ada mengenai keterkaitan antara migrasi dan pembangunan berkelanjutan. Untuk analisis, penelitian ini menggunakan pendekatan deskriptif, dengan data sekunder sebagai sumber primer. Hasil analisis menemukan bahwa kedua negara-negara pengirim dan penerima - mendapat manfaat dari mobilitas penduduk dan migrasi internasional. Negara-negara kurang berkembang dalam ekonomi dan infrastruktur secara keseluruhan menjadi negara pemasok untuk proses migrasi ini, dan meningkatkan pengiriman uang dan pekerja terampil untuk membantu negara lain. Meskipun disadari bahwa kondisi ini merupakan dampak dari lemahnya sistem perekonomian negara berkembang di satu sisi dan faktor demografi dan kesuburan yang terjadi di negara industri maju di sisi lain. Untuk menjaga stabilitas rantai pasokan pembangunan ekonomi, migrasi internasional dimasukkan sebagai salah satu program pembangunan berkelanjutan yang menerapkan nilai-nilai yang lebih manusiawi. Oleh karena itu, para migran harus dilihat sebagai kontributor potensial bagi pertumbuhan negara pengirim dan penerima,  bahkan ada yang mengklaim bahwa mereka adalah sebagai pahlawan devisa. Kata kunci:  migrasi, pembangunan berkelanjutan, remiten

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