INTERNATIONAL AND REGIONAL CAPITAL MOBILITY IN LATIN AMERICAN COUNTRIES

This study examines the role of global, regional and domestic saving for domestic investment financing in the panel of Latin American and Caribbean countries along with its three regional integration blocks, namely SICA, Andean Community and MERCOSUR. Panel regression and rolling-window estimation results reveal that global saving is the main source of domestic investment financing in the region of Latin America and the Caribbean, SICA, Andean Community and MERCOSUR. The role of domestic and regional savings is rather limited, implying that there are weak regional and domestic channels that can funnel domestic and regional savings into investment in the analysed samples. The importance of regional agreement saving is insignificant and decreases over the analysed period except for the Andean Community. The results indicate low financial integration of the member-countries within the three regional trade agreements.

An analysis on the different insurance policy in India and its role in economy growth and providing people with better life opportunities

A update financial system is a very necessary for the economy growth, insurance industry provides freedom security for the future to all its citizen. In India the government and the insurance industry works together to provide maximum benefit to its people in the form of life and non-life insurance which includes health, travel and vehicle insurance, it is a very old industry, exiting since ancient times in different form, with privatization, we see a rapid rise in insurance industry, where people are saving along with there is domestic saving, FDI has amplified to 74% which has brough in capital income. Farmers, poor and vulnerable people have been benefitted with majority of the health insurance policy in India. we also see a rise in digital insurance. In FY21 the non-insurance recorded 5.19% growth in Growth Direct premiums, where as the market share for general and health insurance has escalated from 47.19% to 48.3% for FY20. In this pandemic the main focus in on health insurance, the government is bringing in new schemes for health sector and incrementing its insurance.

Idle Youth and Macroeconomics in Latin America

This paper analyzes the macroeconomic repercussions of the existence of idle youth in a cross-section of Latin American countries. The results indicate that idle youth has a close association with the indices of gender inequality and governance, and with informality. By estimating a series of equations, it was possible to infer that idle youth exerts adverse effects on economic growth, the domestic saving rate and economic vulnerability. It is also reported that the prevention of idle youth rests on substantial increases in tax revenues so as to increase social spending.

The Paradox of Thrift: A Case Study of United States of America

Vermann (2012) and Thies (1996)’s papers indicate that the paradox of thrift is no longer in vogue in United States of America (USA). This paper argues that the paradox of thrift is still applicable to USA even though she is operating with sufficient demand. The main objective of this paper is to determine whether the paradox of thrift is applicable to USA after the Great Depression. In doing this, a vector error correction model was estimated using annual data of gross national income, gross domestic saving, gross domestic investment and final consumption expenditure from 1971 to 2020. The results of the investigation showed that final consumption expenditure and gross domestic saving increase when gross national income increases. Gross national income falls and current saving is unchanged when previous saving rises. The paradox of thrift is applicable to USA after the Great Depression. The target of economic policy should be gross national income and not gross domestic saving because naturally both final consumption expenditure and gross domestic saving will increase if gross national income increases in USA.

The Paradox of Thrift: Empirical Evidence in Nigeria

Vermann (2012) and Thies (1996)’s papers indicate that the paradox of thrift is no longer in vogue. This paper argues that the paradox of thrift is applicable to the developing country like Nigeria which is operating with deficient demand. The main objective of this paper is to determine whether the paradox of thrift is applicable to Nigeria. In doing this, a vector error correction model was estimated using annual data of gross national income, gross domestic saving, gross domestic investment and final consumption expenditure from 1986 to 2019. The results of the investigation showed final consumption expenditure and gross domestic saving increase when national income increases. Gross national income falls and current saving is unchanged when previous saving rises. The paradox of thrift is applicable to Nigeria. The target of economic policy should be gross national income and not gross domestic saving because naturally both final consumption expenditure and gross domestic saving will increase if gross national income increases in Nigeria.

Analysis of the Determinants of Domestic Savings in the WAEMU

This article analyses the determinants of domestic savings in the West African Economic and Monetary Union (WAEMU), except for Guinea-Bissau. Members of the WAEMU are Benin, Burkina Faso, Côte d’Ivoire, Guinea-Bissau, Mali, Niger, Senegal, and Togo. WAEMU member countries are working toward greater regional integration with unified external tariffs. The economic dynamism sought by each country could be beneficial to the mobilization of savings. Research into the determinants of savings is therefore of crucial importance for countries with a financing gap. The study covers the period from 1982 to 2017. The data used for this study come mainly from the World Bank (WDI). Using Dynamic Least Squares (DOLS), the study finds that domestic saving behavior is positively influenced by gross domestic product per capita, investment, life expectancy at birth, and the lending rate. On the other hand, primary school enrolment, trade openness, and inflation negatively affect domestic savings.

The Efficiency of Public Spending in Sub-Saharan Africa

In this article, the authors analyze the efficiency of public spending among Sub-Saharan African countries using a panel data for 23 Sub-Saharan Africa countries covering the period 2006-2018. This paper employs two-stage bootstrap output-oriented DEA approach. In addition, this study analyses the sources of distortions in public spending. Results show that the average biascorrected inefficiency score was 48 percent between 2006 and 2018 while the uncorrected inefficiency was 32.3percent. Institutional quality and domestic saving significantly influence the efficiency of public spending. Hence, there is need for Sub-Saharan African governments to observe fiscal discipline through strengthening of monitoring unit of government expenditure.

Are there any turning points for external debt in Malaysia? Case of adaptive neuro-fuzzy inference systems model

This paper intends to investigate whether the turning points exist between tax revenue, gross domestic product, government expenditure, and gross domestic saving towards Malaysia’s total external debt. The researcher implements the adaptive neuro-fuzzy inference system model to forecast the total external debt in Malaysia. The total external debt prediction then projects the three-dimensional surface diagrams to depict whether the turning points exist among the variables. This study’s empirical finding reveals that the turning points are noticeable between the tax revenue, gross domestic product, and gross domestic saving toward external debt in Malaysia. However, government expenditure depicts a direct relationship with external debt. This finding demonstrates that the anomaly between the theories and scholarly activities. This study also recommends that the tax revenue be collected at maximum holding the government expenditure and gross domestic product are maximum statistics to reduce Malaysia’s external debt.

The Role of the Islamic Banks in Increasing Domestic Saving and Funding Economic Development in Jordan

This article explored the role of Islamic banks in increasing the amount of domestic savings and funding the economic development process in Jordan during the period (2010-2019). A descriptive analytical approach was adopted. The data was obtained from the Association of Banks in Jordan. It was analyzed through carrying out the linear regression analysis. The researchers concluded that the assets of Jordanian Islamic banks increased. That indicates that there was an increase in the savings of Islamic banks. They found that the total credit facilities provided by Islamic banks to individuals and for all sectors have increased. They found that there is a positive significant relationship between the assets in Islamic banks from one hand and credit facilities from another hand. They recommend exerting effort to increase the savings of Islamic banks.