scholarly journals Remittances Inflows and Fiscal Space in Receiving Countries

2020 ◽  
Vol 5 (2) ◽  
pp. 115-141
Author(s):  
Sèna Kimm Gnangnon
Keyword(s):  
Public Finance ◽  
Economic Growth ◽  
Capital Inflows ◽  
Advanced Economies ◽  
Space Effect ◽  
Current Article ◽  
Fiscal Space

The current article contributes to the literature on the effect of remittances inflows on public finance by examining the effect of remittances inflows on fiscal space. Using a sample of 109 receiving countries over the period 1980-2015, the analysis has shown that remittances inflows contribute to the expansion of fiscal space in relatively less developed receiving countries, while in advanced economies, these capital inflows lead to a shrinking of fiscal space. The analysis has additionally revealed that countries that experience a higher economic growth consistently experience an expansionary fiscal space effect of remittances inflows.

Spillovers to the Global South

2017 ◽  
Author(s):  
Yilmaz Akyüz
Keyword(s):  
World Economy ◽  
Commodity Prices ◽  
Global South ◽  
Capital Inflows ◽  
Global Crisis ◽  
Advanced Economies ◽  
The World ◽  
Run Up ◽  
Global Growth ◽  
Very High

The crisis demolished the myth that EDEs were decoupled from advanced economies and BRICS were becoming new engines of global growth. From 2011 onwards, with the end of the twin booms in commodity prices and capital inflows, growth in EDEs has converged downward towards the depressed levels of advanced economies from the very high levels achieved in the run-up to the global crisis and the immediate aftermath. Loss of momentum is particularly visible in economies that failed to manage the earlier booms prudently. In examining the spillovers from policies in major advanced economies and China to EDEs, the chapter introduces the notion of commodity-finance nexus wherein these markets reinforce each other during both expansions and contractions. The chapter concludes with a brief discussion of policies needed to put the world economy into decent shape and to avoid liquidity and debt crises in EDEs.

Capital Inflows and Economic Growth in Nigeria: The Role of Macroeconomic Policies

2016 ◽  
Vol 28 (3) ◽  
pp. 277-290 ◽  
Author(s):  
Philip Ifeakachukwu Nwosa ◽  
Temidayo Oladiran Akinbobola
Keyword(s):  
Economic Growth ◽  
Capital Inflows ◽  
Macroeconomic Policies

South African Economy: No Easy Life Ahead

2015 ◽  
pp. 104-116
Author(s):  
P. Mozias
Keyword(s):  
Economic Growth ◽  
South Africa ◽  
Interest Rates ◽  
South African ◽  
Trade Unions ◽  
Current Account Deficit ◽  
National Development ◽  
Capital Inflows ◽  
The Other ◽  
The One

South African rand depreciated in 2013–2014 under the influence of a number of factors. Internationally, its weakness was associated with the capital outflow from all emerging markets as a result of QE’s tapering in the US. Domestically, rand plummeted because of the deterioration of the macroeconomic stance of South Africa itself: economic growth stalled and current account deficit widened again. Consumer spending was restrained with the high household indebtedness, investment climate worsened with the wave of bloody strikes, and net export was still prone to J-curve effect despite the degree of the devaluation happened. But, in its turn, those problems are a mere reflection of the deep institutional misbalances inherent to the very model of the national economy. Saving rate is too low in South Africa. This leads not only to an insufficient investment, but also to trade deficits and overdependence on speculative capital inflows. Extremely high unemployment means that the country’s economic potential is substantially underutilized. Joblessness is generated, first and foremost, by the dualistic structure of the national entrepreneurship. Basic wages are being formed by way of a bargaining between big public and semi state companies, on the one hand, and trade unions associated with the ruling party, on the other. Such a system is biased towards protection of vested interests of those who earn money in capital-intensive industries. At the same time, these rates of wages are prohibitively high for a small business; so far private companies tend to avoid job creation. A new impulse to economic development is likely to emerge only through the government’s efforts to mitigate disproportions and to pursue an active industrial policy. National Development Plan adopted in 2012 is a practical step in that direction. But the growth of public investment is constrained by a necessity of fiscal austerity; as a result, the budget deficit remained too large in recent years. South African Reserve Bank will have to choose between a stimulation of economic growth with low interest rates, on the one hand, and a support of rand by tightening of monetary policy, on the other. This dilemma will greatly influence prices of securities and yields at South African financial markets.

Introduction

2019 ◽  
pp. 1-52
Author(s):  
Torben Iversen ◽  
David Soskice
Keyword(s):  
Economic Growth ◽  
Knowledge Economy ◽  
Wealth Accumulation ◽  
Main Argument ◽  
Middle Classes ◽  
Democratic State ◽  
Advanced Economies ◽  
Late Nineteenth ◽  
Over Time

This introductory chapter provides an overview of the book's main themes. The main argument is that over time, the advanced capitalist democratic state has paradoxically become strengthened through globalization. The spread of neoliberal ideas reflects the demand of decisive voters from the middle and upper middle classes to fuel economic growth, wealth, and opportunity in the emerging knowledge economy. The “laws” of capitalism driving wealth accumulation are in fact politically and, largely, democratically manufactured. This was true to a large extent at the formation of advanced economies in the late nineteenth and early twentieth centuries, but it is especially true in today's supposedly borderless economy.

Regulating Capital Flows: A Historical Perspective

2018 ◽  
Author(s):  
Atish R. Ghosh ◽  
Jonathan D. Ostry ◽  
Mahvash S. Qureshi
Keyword(s):  
Emerging Markets ◽  
Capital Flows ◽  
Historical Perspective ◽  
Financial Liberalization ◽  
Capital Controls ◽  
Authoritarian Regimes ◽  
Capital Inflows ◽  
Macroeconomic Policies ◽  
Advanced Economies ◽  
Guilt By Association

This chapter summarizes how thinking about capital flows and their management has evolved in both policymaking and academic circles. Many advanced economies used restrictions on capital inflows for prudential purposes—even as they pursued financial liberalization more broadly—until the 1980s, when capital account restrictions began to be swept away as part of broader liberalization efforts. Likewise, many emerging markets that had inflow controls for prudential reasons dismantled them when liberalizing domestic financial markets and controls over outflows. That the use of capital controls as a means of managing inflows is often viewed with suspicion may be partly a “guilt by association” with outflow controls and exchange restrictions. Historically, these have been more prevalent and more intensive, and their purpose has been to prop up authoritarian regimes or poor macroeconomic policies, often affecting both current and capital transactions.

Mysteries of Unsustainable Public Finance and of Low Economic Growth

2020 ◽  
pp. 175-200
Author(s):  
Olga Ivanovna Pilipenko ◽  
Andrey Igorevich Pilipenko
Keyword(s):  
Public Finance ◽  
Economic Growth ◽  
Income Distribution ◽  
Uncertainty Principle ◽  
Economic Efficiency ◽  
The State ◽  
Heisenberg Uncertainty Principle ◽  
Economic Agents ◽  
Heisenberg Uncertainty ◽  
Low Efficiency

The authors structure the main functions of the state in the economic system as the “famous triad” of R. Musgrave. They are connected with allocating resources, redistributing income (equality in income distribution), and stabilizing economy (economic efficiency). The aim is to find the causes of their low efficient implementation by the state. This is manifested in the fact that society itself does not have the ability to adequately control the current activities of the state created and put over it in order to protect its interests; in the contradictory essence of the state itself, which is the regulator, which forms the rules of behavior of economic agents and at the same time acts as the economic agent participating in market transactions. To model the options for the effective resolution of the problems of the “magic triangle,” the authors formulated the Musgrave uncertainty principle by analogy with the Heisenberg uncertainty principle in physics. This makes it possible to assess the budget expenditures of the state in order to get out of its low efficiency trap.

Wither Convergence?

2016 ◽  
pp. 1-24
Author(s):  
Francisco C. Sercovich
Keyword(s):  
Economic Growth ◽  
Global Convergence ◽  
Industrial Revolution ◽  
Developing Economies ◽  
Middle Income ◽  
Catching Up ◽  
Advanced Economies ◽  
Main Driver ◽  
Global Economic Growth ◽  
First Time

For the first time since the industrial revolution, emerging economies are the main driver of global economic growth. For all its significance, this cannot be taken as an indicator of global convergence, since it resulted essentially from the successful catching-up processes of just a few Asian countries over the last few decades, whilst the productivity and income of the bulk of the developing economies have lagged persistently behind those of the advanced economies. The former continue to have the potential to grow faster than the latter, but realizing this potential on sustainable basis makes it necessary to meet a number of increasingly stringent conditions. Grounds for optimism are considerably less solid today than was the case in the recent past. This is highlighted by the large number of countries locked-up in the ‘middle-income trap”. This chapter offers a fresh view of this phenomenon, examines the nature of the conditions required for the potential for catching-up of middle-income economies to be realized, and attempts to arrive at a realistic outlook on this matter.

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