Export Growth - Fuel Price Nexus in Developing Countries: Real or False Concern?

2022 ◽  
Vol 43 (3) ◽  
Author(s):  
Kangni Kpodar ◽  
Stefania Fabrizio ◽  
Kodjovi Eklou
2012 ◽  
Vol 51 (4II) ◽  
pp. 209-226
Author(s):  
Shahbaz Nasir

Traditionally, developed countries are the major exporters of services; however, technological developments in IT and communications over the last two decades have made it possible for developing countries to exploit their comparative advantage in some modern services. The driving force for this comparative advantage is the large pool of semi-skilled and skilled graduates in emerging countries who can deliver their services across borders, using advanced communication technologies. Why do emerging countries have increasing modern services exports? How are these exports explained by theory? What are the factors behind this export growth and the reasons to expect future growth? These are some of the important questions that researchers and policy-makers would like to find answers to and an attempt has been made to answer these questions in this paper. Identification of the sources of services export growth from emerging and developing countries can be attempted through established theories of goods trade and production. This paper reviews selected theory and empirical work in order to explain the underlying causes for growing exports of services. Causes for the export of modern services may include a comparative advantage of the exporting country, cost reduction for the importing firm through outsourcing, reduction in trading costs due to technological improvements and an increase in gains from services trade.


2018 ◽  
Vol 34 (1) ◽  
pp. 28-47
Author(s):  
Caroline Freund ◽  
Martha Denisse Pierola

Abstract Export superstars are important for export growth and diversification and are typically born large. Firm-level data on manufacturing trade from 32 developing countries show that the top five exporters account for on average nearly one-third of exports, 47 percent of export growth, and a third of the growth due to export diversification over a five-year period. Within countries and industries, export growth is positively correlated with the share of exports in the top five firms. Most of the top five exporters were already large five (or eight) years ago or are new firms; it is rare for these export superstars to emerge from the bottom half of the distribution of firm sizes. For countries where detailed data exist, superstars are producers, not traders, and are primarily foreign owned.


2020 ◽  
Vol 20 (194) ◽  
Author(s):  
Kangni Kpodar ◽  
Patrick Imam

While many developing countries limit the international fuel price pass through to domestic fuel prices, others do not. Against this backdrop, we examine the factors that determine whether governments allow international fuel price changes to be passed through to domestic prices in developing countries using a dataset spanning 109 developing countries from 2000 to 2014. The paper finds that the pass-through is higher when changes in international prices are moderate and less volatile. In addition, the flexibility of the pricing mechanism allows for higher pass-through while exchange rate depreciation and lower retail fuel prices in neighboring countries inhibit it. The econometric results also underscore the fact that countries with inflation tend to experience lower pass-through, whereas those with high public debt exhibit larger pass-through. Finally, no evidence is found that political variables or environmental policies matter with regard to fuel price dynamics in the short-term. These findings, which are consistent across fuel products (gasoline, diesel and kerosene), allow us to draw important policy lessons for fuel subsidy reforms.


2021 ◽  
Vol 16 (Number 1) ◽  
pp. 79-96
Author(s):  
Karren Lee Hwei Khaw ◽  
Toh Jia Ni

This paper examined the impact of fossil fuel price and carbon dioxide (CO2) emission on renewable energy, using a sample of 14 Asian developing countries from the years 2000 to 2018. Fossil fuel prices, mainly those of crude oil and coal, are positively related to renewable energy capacity. CO2 emission is also a positive driver, indicating the significance of environmental concern. The results were consistent for both the upper-middle-income and lower-middle-income countries. Between fossil fuels and CO2 emission, the positive impact of CO2 emission outweighed that of fossil fuels. From a policy perspective, this paper concurs the need to shift huge subsidies away from fossil fuels to renewable energy and to enforce a heavy tax on CO2 emission for a sustainable environment.


1998 ◽  
Vol 37 (4II) ◽  
pp. 661-685 ◽  
Author(s):  
Ashfaque H. Khan

Trade policies in developing countries have been at the centre-stage of analysis for the past several decades. The desire for rapid economic growth in developing countries raised many question about the relationship between trade and growth [Krueger (1997a)]. It is, by now, well-established that there exists a strong positive relationship between export growth and overall economic growth in general and manufactured export growth and overall economic growth in particular.1 Those countries that have been most successful in expanding their manufactured exports have not only achieved higher economic growth but also succeeded in alleviating poverty? This has indeed been the case in East Asia [ADB (1997)]. The core question therefore is: which trade strategies have enabled countries to expand exports in general and manufactured exports in particular?


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