Foreign Direct Investment and Its Impact on The Regional Level: A Prospective Analysis

Some countries in development like China, the Philippines, Nigeria, Pakistan, Bangladesh, Vietnam and Ukraine do an active promotion in order to raise foreign direct investment (FDI) under the proposal of a positive effect in economic growth while implementing this type of fundraising. Thus, it constitutes an important source of external financing, allowing increases in productivity through technologic transfer as well as rises in competitiveness, efficiency in the managerial models, and expand the countries’ exporting capabilities. After the economic crisis experienced in the 80’s, Latin America, specifically countries like Argentina, Brazil and Mexico, that have based their financing in loans, stopped to raise money by these means when the crisis appeared, arising as an alternative the FDI, also on account of the foreign creditors demanding the payment of their issued resources and the warning of not giving any more financing until these countries restructure their economies, it was established the capital stock of the recipient economy. In this context, it was necessary to implement structural reforms, which were contemplated in the “Washington Consensus”, such as price stabilization and fiscal deficit control with the purpose of recovering the trust to investors and reactivating the capital flow through loans or foreign direct investment aimed at Latin America. In 1990, foreign direct investment became the primary source of external financing to peripheral countries (Aitken y Harrison, 1999:1).

The Other Side of Convertibility

A system for ensuring the convertibility of a currency into specified commodities is also, ipso facto, a system for stabilizing the prices of those commodities in terms of the currency in question. This connection is widely ignored in discussions of these two subjects, but it links the two specialised fields of monetary economics and commodity price stabilization tightly together. Unfortunately, despite much work on the topic spanning many decades, almost all such work is made within a single paradigm – that of establishing an international institution to stabilize commodity prices. However, for a number of reasons, no international agreement can achieve more than a very partial solution to this problem: most importantly it cannot directly stabilize more than a single currency, thereby losing the most fundamental benefit of a true solution for all but one of the participating countries. A different approach is therefore needed.

Impact of Energy Price Stabilization Mechanism on Regulated Clients’ Tariffs: The Case of Chile

The Chilean socio-political explosion in October 2019 embodies a milestone in Chile’s national history, challenging the current government’s administration and the management of state resources. One of the triggering factors of this crisis was the increase in electricity prices for those clients previously subject to flat pricing. As an example, in 2019, electricity fees increased by 25% at the national level. In order to solve the conflict, the Ministry of Energy proposed a mechanism, applicable for two years, which would freeze energy charges for companies, industries and domestic customers subject to a regulated tariff. This mechanism was employed and would produce a debt favoring generation companies, which could not exceed CLD 1.350 million. This article analyzes the effectiveness of the energy price stabilization mechanism and the effects of the Chilean socio-economic instability—resulting from the aggregated debt generated by the mechanism applicability—on the exchange rate over its duration of operation. The results suggest that the effects of the current law will not fulfill the purpose of tariff stabilization until 2024; additionally, there will be a sustained increase in tariffs until the year 2027.

Identifikasi Citra Beras Menggunakan Algoritma Multi-SVM Dan Neural Network Pada Segmentasi K-Means

Indonesia is a country with high rice needs because it is a staple food for more than 90% of populations. High demand requires high stock so imports are carried out in accordance with Permendagri Number 19/M-DAG/PER/3/2014 which explains rice import standards. There are many types of rice imported into Indonesia with various quality, color and import requirements such as for health or price stabilization. In terms of colors, imported white rice is the most consumed rice by Indonesians. One example is jasmine rice from Thailand. Meanwhile, in terms of imports, both for health and stabilizing the price of japonica rice (Japan) and Basmati (Pakistan) are the most imported to Indonesia. But there are still many who are not familiar with those three rices. In this research, the three types of rice were identified by comparing the Multi-SVM algorithm and Neural Network algorithm. Image acquisition is done using a flatbed scanner which produces 90 images divided into 63 training images and 27 testing images. K-Means becomes an image segmentation method and image binary converts. Feature extraction using morphological features with the regionprop method combined with the Gray Level Co-Occence Matrix (GLCM) produces 9 features that can produce 96.296% accuracy for Multi-SVM and 88.89% Neural Network

Inequality, Business Cycles, and Monetary‐Fiscal Policy

We study optimal monetary and fiscal policies in a New Keynesian model with heterogeneous agents, incomplete markets, and nominal rigidities. Our approach uses small‐noise expansions and Fréchet derivatives to approximate equilibria quickly and efficiently. Responses of optimal policies to aggregate shocks differ qualitatively from what they would be in a corresponding representative agent economy and are an order of magnitude larger. A motive to provide insurance that arises from heterogeneity and incomplete markets outweighs price stabilization motives.