scholarly journals Does Openness, and Productivity Matters for FDI: A Global Interactive Analysis Based on the Complementary Role of Institutions

2020 ◽  
Vol 6 (2) ◽  
pp. 1
Author(s):  
Humaira Raffat ◽  
Danish Ahmed Siddiqui
Keyword(s):  
Financial Liberalization ◽  
Institutional Environment ◽  
Positive Impact ◽  
Trade Openness ◽  
Abnormal Returns ◽  
Developed Countries ◽  
Conventional Wisdom ◽  
High Productivity ◽  
Complementary Role ◽  
Prime Concern

Conventional wisdom suggested that investment flows in where you have abnormal returns that resulted in a high productivity area. However, FDI behaves peculiarly, as most are targeted towards developed countries where excess competition drives down returns and ultimately productivity. On the contrary, it shy in developing countries where one has more productive investment opportunities. This study tries to tackle the problem and explores the factors that influenced FDI flows. In particular, we focused on productivity, trade openness, financial liberalization, and institutions. Macro-level data was collected from 27 economies from 2004 to 2015. The analysis was done using GMM methodology. The results showed productivity remained insignificant in explaining FDI throughout the models. Trade seems to have a significant positive impact on the model without the interaction effect. Interestingly, financial liberalization seems to affect FDI negatively in all cases. GDP growth had a positive and significant effect. All Institutional variables that include control of corruption, government effectiveness, regulatory quality, rule of law, seems to have a significant positive impact on FDI individually, as well as in the combined form. We also witnessed significant and positive complementarities with each of the institutional factors and productivity, in explaining FDI. This indicated that higher productivity is not the deciding factor of FDI, however, the same productivity in a better institutional environment would produce positive complementarity that would significantly determine FDI. The findings imply that investors' prime concern is not productivity but the institutional environment. Moreover, only with quality institutions, the conventional wisdom persists.

Is Trade in Services Healthier than Trade in Goods?

2017 ◽  
Vol 17 (3) ◽  
pp. 20160068
Author(s):  
Vishalkumar J Jani
Keyword(s):  
Health Status ◽  
Positive Impact ◽  
Trade Openness ◽  
Developed Countries ◽  
Prima Facie ◽  
Dominant Factor ◽  
Trade In Services ◽  
Least Developed Countries ◽  
Positive Health ◽  
The Impact

There has been an ongoing debate about the impact of trade openness on the health. This study aims to inform this debate by comparing health impacts of trade in services vis-à-vis trade in goods. Prima facie, the former, due to association with the higher human capital requirement and less pollution, may have a higher positive health impact. The main finding is that the trade in services has a higher positive impact on the health status compared to that of the trade in goods. However, for the least developed countries trade in goods is the dominant factor impacting the health status.

Trade openness, financial liberalization and economic growth

2017 ◽  
Vol 6 (3) ◽  
pp. 229-246 ◽  
Author(s):  
Rana Muhammad Adeel-Farooq ◽  
Nor Aznin Abu Bakar ◽  
Jimoh Olajide Raji
Keyword(s):  
Economic Growth ◽  
Financial Liberalization ◽  
Positive Impact ◽  
Trade Openness ◽  
Principal Component ◽  
Content Type ◽  
Distributed Lag ◽  
Autoregressive Distributed Lag ◽  
Long Run ◽  
Comparison Of The Results

Purpose The purpose of this paper is to empirically examine the effects of financial liberalization and trade openness on the economic growth of two countries, namely, Pakistan and India for the period 1985-2014. Design/methodology/approach This study uses the autoregressive distributed lag technique, which allows mixed order of integration. In addition, it uses the principal component method to create an index for financial liberalization to examine how it affects the economic growth of the selected countries. Findings The findings reveal that in the short and long run, trade openness has positive effect on the Pakistan’s economic growth while the financial liberalization has positive impact only in the long run. In the case of India, both financial liberalization and trade openness positively and significantly influence the economic growth in the short and long run. Practical implications By comparing the results of both countries, trade openness and financial liberalization increase the economic growth of India more than that of Pakistan. These results suggest that Pakistan should consider appropriate positive policies regarding financial liberalization and trade openness to achieve high and stable economic growth in the future. Originality/value This study creates financial liberalization index by using the principal component analysis method to explain the role of financial liberalization in the economic growth of Pakistan and India. In addition, it makes comparison of the results based on which country benefits most from the liberalization of trade and financial sectors. Only very few studies have examined these countries, yet their results have remained inconclusive as well.

scholarly journals Effect of Trade Openness on Food Security in the EU: A Dynamic Panel Analysis

2020 ◽  
Vol 17 (12) ◽  
pp. 4311 ◽  
Author(s):  
Giulio Fusco ◽  
Benedetta Coluccia ◽  
Federica De Leo
Keyword(s):  
Food Security ◽  
Positive Impact ◽  
Trade Openness ◽  
Generalized Method Of Moments ◽  
Developed Countries ◽  
European Countries ◽  
Panel Analysis ◽  
Dynamic Panel ◽  
Dynamic Panel Analysis ◽  
The Impact

The problem of food insecurity is growing across the world, including economically developed countries. In Europe, the question is not just about the total supply of foods, but it includes even the accessibility of prices and their nutritional and qualitative adequacy. In this context many countries recognize the importance of trade policies to ensure adequate levels of food security. The aim of this work was to analyze the impact of trade openness on the level of food security in European countries, using a dynamic panel analysis with the generalized method of moments (GMM) approach. We selected two different indicators of food security (average protein supply, average dietary energy supply adequacy) capable of offering information both on the quantity and on the nutritional quality of the food supply. In order to improve the robustness of the empirical results, we developed three different regressions, with three trade openness indicators (trade openness, tariff, globalization) for each food security indicator. The results showed that commercial opening has, on average, a statistically significant net positive impact on the food security of European countries. Additional results indicate that also economic development, together with the importance of the agricultural sector, can improve food security levels.

scholarly journals HUMAN CAPITAL - THE MAIN COMPETITIVE ADVANTAGE UKRAINE: PROBLEMS THE WAY ITS IMPLEMENTATION

2017 ◽  
Vol 19 (1(63)) ◽  
pp. 59-64
Author(s):  
V.F. Goryachuk
Keyword(s):  
Human Capital ◽  
Competitive Advantage ◽  
Institutional Environment ◽  
Developed Countries ◽  
Gdp Per Capita ◽  
Level Of Education ◽  
High Productivity ◽  
Fair Competition ◽  
Technological Level ◽  
Per Capita

Human capital is the main competitive advantage of Ukraine, but there are a number of negative factors that limit the effectiveness of its use. First of all, this is a low level of staffing with fixed assets (5-6 times lower than in developed European countries). This results in a low technological level of production and, consequently, a 4-5 times lower level of labor productivity in comparison with developed countries, limiting the opportunities of Ukrainian citizens, especially of high qualifications, to realize their abilities and skills. As a result, the outflow of highly skilled professionals to other countries with a higher technological level of production and higher wages. Among 52 countries with the highest level of education, Ukraine has one of the lowest GDP per capita ($ 7,500). At the existing level of education in our country, GDP per capita should be about 30.0 thousand dollars. This inconsistency, to a large extent, can be attributed to inefficient government and high levels of corruption. All this negatively affects the efficiency of the use of human capital and productivity of work of citizens, which they can count on, taking into account their educational level. Important in the consideration of human capital is its moral component, which, unlike other components (education, knowledge, experience, health, etc.) determines the vector of its use: for good or for evil. The efficiency of the use of human capital depends on the state of the institutional environment. The existing institutional environment in Ukraine encourages redistribution rather than material wealth production, reduces the possibility of fair competition, limits the direction of high-productivity use of human capital. Ukraine has enormous intellectual potential. This is our main competitive advantage, it is an opportunity to take a worthy place among the leading countries of the world. Today, there is such a chance, but it will take some time and it can be lost if society continues to cultivate the readiness of people for dishonest acts for the sake of careers, power and money, instead of focusing on the realization of their creative abilities, energy and initiative to ensure the successful modernization of your country.

scholarly journals Diabetic Retinopathy Prediction by Ensemble Learning Based on Biochemical and Physical Data

Sensors ◽  
2021 ◽  
Vol 21 (11) ◽  
pp. 3663
Author(s):  
Zun Shen ◽  
Qingfeng Wu ◽  
Zhi Wang ◽  
Guoyi Chen ◽  
Bin Lin
Keyword(s):  
Diabetic Retinopathy ◽  
Prediction Model ◽  
Ensemble Learning ◽  
Positive Impact ◽  
Reduction Rate ◽  
Developed Countries ◽  
Small Sample ◽  
Feature Reduction ◽  
Physical Data ◽  
Diabetes Retinopathy

(1) Background: Diabetic retinopathy, one of the most serious complications of diabetes, is the primary cause of blindness in developed countries. Therefore, the prediction of diabetic retinopathy has a positive impact on its early detection and treatment. The prediction of diabetic retinopathy based on high-dimensional and small-sample-structured datasets (such as biochemical data and physical data) was the problem to be solved in this study. (2) Methods: This study proposed the XGB-Stacking model with the foundation of XGBoost and stacking. First, a wrapped feature selection algorithm, XGBIBS (Improved Backward Search Based on XGBoost), was used to reduce data feature redundancy and improve the effect of a single ensemble learning classifier. Second, in view of the slight limitation of a single classifier, a stacking model fusion method, Sel-Stacking (Select-Stacking), which keeps Label-Proba as the input matrix of meta-classifier and determines the optimal combination of learners by a global search, was used in the XGB-Stacking model. (3) Results: XGBIBS greatly improved the prediction accuracy and the feature reduction rate of a single classifier. Compared to a single classifier, the accuracy of the Sel-Stacking model was improved to varying degrees. Experiments proved that the prediction model of XGB-Stacking based on the XGBIBS algorithm and the Sel-Stacking method made effective predictions on diabetes retinopathy. (4) Conclusion: The XGB-Stacking prediction model of diabetic retinopathy based on biochemical and physical data had outstanding performance. This is highly significant to improve the screening efficiency of diabetes retinopathy and reduce the cost of diagnosis.

Stock Market Reaction on Green-Bond Issue: Evidence from Indian Green-Bond Issuers

2021 ◽  
pp. 097226292110225
Author(s):  
Rakesh Kumar Verma ◽  
Rohit Bansal
Keyword(s):  
Stock Returns ◽  
Financial Institutions ◽  
Stock Price ◽  
Stock Exchange ◽  
Abnormal Returns ◽  
Developed Countries ◽  
Low Carbon ◽  
Bond Issue ◽  
The Government ◽  
The Impact

Purpose: A green bond is a financial instrument issued by governments, financial institutions and corporations to fund green projects, such as those involving renewable energy, green buildings, low carbon transport, etc. This study analyses the effect of green-bond issue announcement on the issuer’s stock price movement. It shows the reaction of the stock price after the issue of green bonds. Methodology: This study is based on secondary data. Green-bond issue dates have been collected from newspaper articles from different online sources, such as Business Standard, The Economic Times, Moneycontrol, etc. The closing prices of stocks have been taken from the NSE (National Stock Exchange of India Limited) website. An event window of 21 days has been fixed for the study, including the 10 days before and after the issue date. Data analysis is carried out through the event study method using the R software. Calculation of abnormal returns is done using three models: mean-adjusted returns model, market-adjusted returns model and risk-adjusted returns model. Findings: The results show that the issue of green bonds has a significant positive effect on the stock price. Returns increase after the green-bond issue announcement. Although the announcement day shows a negative return for all the samples taken for the study, the 10-day cumulative abnormal return (CAR) is positive. Thus, green-bond issues lead to positive sentiments among investors. Research implications: This research article will help the government issue more green bonds so that the proceeds can be utilized for green projects. The government should motivate corporations and financial institutions to issue more green bonds to help the economy grow. In India, very few organizations have issued a green bond. It will be beneficial if these players issue green bonds, as it will increase the firms’ value and boost returns to the investors. Originality/value: The effect of green-bond issue on stock returns has been analysed in some studies in developed countries. This is the first study to examine the impact of green-bond issue on stock returns in the Indian context, to the best of our knowledge.

scholarly journals Analysis of the effectiveness of healthcare M&A transactions in developed countries

2020 ◽  
pp. 21-21
Author(s):  
Varvara Nazarova
Keyword(s):  
Abnormal Returns ◽  
Developed Countries ◽  
The United States ◽  
Healthcare Industry ◽  
The European Union ◽  
Payment Method ◽  
Corporate World ◽  
The Face ◽  
Thesis Statement ◽  
Additional Value

The healthcare industry is a large and fast-growing segment of the corporate world, especially in developed countries. In the face of growing competition, healthcare companies inevitably resort to mergers and acquisitions (M&As) in order to accelerate their development. The objective of this study is to identify the creation of additional value for M&A deal participants in the healthcare industry in the United States and the European Union in 2008-2017. In this paper, we propose the following thesis statement: can healthcare companies expect excess returns from M&A deals? On average, M&A deals in the healthcare industry in developed countries create positive abnormal returns for acquiring companies and are efficient; a positive, significant impact on abnormal returns was found in the deal value of M&A deals, a negative significant impact was observed for deals conducted with the shares payment method and for acquiring companies with a larger number of employees.

scholarly journals Positive impact of international companies on development of knowledge economy

2017 ◽  
Vol 15 (2) ◽  
pp. 81-89 ◽  
Author(s):  
Maxim Polyakov
Keyword(s):  
Development Strategy ◽  
Knowledge Economy ◽  
Positive Impact ◽  
Human Life ◽  
Developed Countries ◽  
Basic Program ◽  
Adverse Impact ◽  
Positive Effects ◽  
The World ◽  
International Companies

In recent years, all economically developed countries of the world experience formation of knowledge economy as the highest stage of postindustrial economy development. International companies, basing their activity on accumulation of human capital according to the principles of innovativeness, scientific nature, continuity and progressiveness, play an important role in activation of this process. Owing to global nature of their activity it influences all spheres of human life in the world, improving it, as well as having an adverse impact (enhancement of poverty in some regions of the word, environment pollution, etc.). Achievement of these conditions of sustainable economic growth is possible just by the way of prevention of the adverse impact, which, among other things, depends on the active social position of the management of international companies. Therefore this paper is aimed at identification of priority focuses of socially responsible activity of international companies. This goal was achieved through generalization of basic program initiatives of the activity of three companies, leading in innovations (Apple, Samsung and IBM). Adoption of the above-mentioned initiatives by other companies of the world as guides while developing their own development strategy has to facilitate the growth of positive effects from enhancement of knowledge economy in the world.

scholarly journals Interventions in the workplace to support breastfeeding for women

2017 ◽  
Vol 1 (1) ◽  
pp. 10
Author(s):  
Zahra Albasri
Keyword(s):  
Exclusive Breastfeeding ◽  
Working Mothers ◽  
Positive Impact ◽  
Work Place ◽  
Employee Morale ◽  
Work Absenteeism ◽  
High Productivity ◽  
Duration Of Breastfeeding

Support breastfeeding in work place have positive impact on the working mothers and their children, we all know the benefits of breastfeeding and few changes and support to the working mothers will help breastfeeding to continue. Workplace programs could help women to continue to breastfeed, and some programs may help women to initiate breastfeeding. By promoting and supporting the programs, employers may be able to influence the duration of breastfeeding (including exclusive breastfeeding) and so improve the health of mother and baby, but also benefit from less work       absenteeism, high productivity and increased employee morale and retention.

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