scholarly journals A New Motivation for Sustainable Trade Between Countries with Different Regulatory Qualities

2019 ◽  
Vol 12 (1) ◽  
pp. 209
Author(s):  
Wenshou Yan ◽  
Xi Yang
Keyword(s):  
Developing Countries ◽  
Institutional Quality ◽  
Estimation Methods ◽  
Negative Effects ◽  
Government Institutions ◽  
Regulatory Quality ◽  
Government Quality ◽  
Large Panel ◽  
Trade Partner ◽  
Sustainable Trade

In the context of rising anti-globalization sentiments, countries tend to trade with superior government institutions for a longer period and with a higher volume of exports. This phenomenon hinders sustainable trade between countries with different regulatory qualities, resulting in negative effects for developing countries that have poor institutional quality. Using a large panel dataset covering 192 countries during the period 1996–2017, this paper investigates the effect of relatively better government quality on exports. This quality is measured by said government’s regulatory quality relative to its trade partner. The empirical results indicate that a country with relatively better institutional quality receives at least 4% higher exports (dubbed as a premium gain), keeping other factors constant. The empirical result remains the same when solving the endogeneity issue and when applying alternative estimation methods. This paper thus proposes a new channel for sustainable trade for countries characterized by different institutional qualities.

scholarly journals Factors affecting the success of the election economy in developed and developing countries (Some examples about Turkey)

2016 ◽  
Author(s):  
Engin Hepaksaz
Keyword(s):  
Developing Countries ◽  
Budget Deficit ◽  
Public Spending ◽  
Institutional Quality ◽  
Fiscal Policies ◽  
Media Access ◽  
Negative Effects ◽  
Factors Affecting ◽  
The Public ◽  
Ruling Party

Despite the risk of deterioration of the balance of budget and economy during election periods, the parties can go to election economy applications in order to remain in power depending on competition between themselves. Especially the incumbent uses fiscal policies for reelection purposes. Here the incumbent intends to secure reelection by maximizing his expected vote share at the next election and follow expansionary policies just before the elections and reverse the trend after the elections in order to smooth the negative effects of pre-election budget deficit. All these applications may cause deterioration of budget balances, budget deficit and economic instability leading to an increase in debt with a significant increase of public spending relative to tax revenues. But in terms of election economy not only the public policies but also the other factors (level of development, institutional quality and media access, level of democracy, political and economic crisis, constitutional rules, transparency etc.) play a key role which focus on the idea of heterogeneity across countries. In this study, factors affecting the success of the election economy in developed and developing countries are evaluated and some examples are given about Turkey’s 30-year period of elections from 1983 to 2015.Keywords: election economy, ruling party, budget deficit, turkey

NATURAL RESOURCE RENTS AND INTERNAL CONFLICT: THE ROLE OF INSTITUTIONAL QUALITY

2021 ◽  
pp. 1-21
Author(s):  
UMAIMA ARIF ◽  
MUHAMMAD USMAN ◽  
FARZANA NAHEED KHAN
Keyword(s):  
Developing Countries ◽  
Natural Resource ◽  
Institutional Quality ◽  
Internal Conflict ◽  
Resource Rent ◽  
Government Institutions ◽  
Resource Rents ◽  
Natural Resource Rents ◽  
Natural Resource Rent ◽  
The Impact

The study explores the impact of natural resource rents on internal conflicts and examines how the aforementioned relationship is influenced by institutional quality. The study is based on a panel dataset of 70 countries for the period 1991–2018. The empirical evidence shows that natural resource rent leads to an increase in internal conflict in both developed and developing countries. However, the impact of natural resource rent on internal conflict is negative in the presence of better quality of government institutions for the global sample, developed and developing countries. Hence, natural resource rent leads to a reduction in internal conflict when it is supported by better institutional quality in terms of high bureaucratic quality, rule of law and low corruption in government institutions. Overall, the study finds that natural resource rent leads to an increase in internal conflict, however, this relationship is mitigated by better institutional quality.

scholarly journals How Do Budget Deficits and Economic Growth Affect Reelection Prospects? Evidence from a Large Panel of Countries

2008 ◽  
Vol 98 (5) ◽  
pp. 2203-2220 ◽  
Author(s):  
Adi Brender ◽  
Allan Drazen
Keyword(s):  
Economic Growth ◽  
Developing Countries ◽  
Fiscal Policy ◽  
Growth Rates ◽  
Electoral System ◽  
Developed Countries ◽  
Economic Conditions ◽  
New Democracies ◽  
Budget Deficits ◽  
Large Panel

We test whether good economic conditions and expansionary fiscal policy help incumbents get reelected in a large panel of democracies. We find no evidence that deficits help reelection in any group of countries independent of income level, level of democracy, or government or electoral system. In developed countries and old democracies, deficits in election years or over the term of office reduce reelection probabilities. Higher growth rates over the term raise reelection probabilities only in developing countries and new democracies. Low inflation is rewarded by voters only in developed countries. These effects are both statistically significant and quite substantial quantitatively. (JEL D72, E62, H62, O47)

Prospects for Cultural Heritage Promotion Within the Creative Economy Framework

2018 ◽  
Vol 3 (2) ◽  
pp. 223-230
Author(s):  
Indrasen Vencatachellum
Keyword(s):  
Sustainable Development ◽  
Developing Countries ◽  
Cultural Heritage ◽  
Renewable Resources ◽  
Holistic Approach ◽  
Creative Economy ◽  
Negative Effects

This article uses the recent concept of ‘creative economy’ to argue in favour of a dynamic and holistic approach to the promotion of the cultural heritage. This implies namely that the heritage is viewed in both its material and intangible forms and as a driver of sustainable development. After an overview of the diverse interpretations, at natioanl, regional and international levels, of the creative economy, the author illustrates how the cultural heritage can benefit from the growing importance given to unlilited, renewable resources for the development of individuals and communities, especially in the developing countries. The article contains, however, words of caution on the negative effects of the creative economy and submits that these can be overcomed by extending the sphere of the cultural heritage to all areas of developement.

Macroeconomics of money laundering: effects and measurements

2017 ◽  
Vol 24 (1) ◽  
pp. 65-81 ◽  
Author(s):  
Nella Hendriyetty ◽  
Bhajan S. Grewal
Keyword(s):  
Developing Countries ◽  
Money Laundering ◽  
Tax Evasion ◽  
Developed Countries ◽  
Tax Revenue ◽  
Negative Effects ◽  
Policy Makers ◽  
Content Type ◽  
Macroeconomic Conditions ◽  
Illicit Flows

Purpose The purpose of this paper is to review studies focusing on the magnitude of money laundering and their effects on a country’s economy. The relevant concepts are identified on the basis of discussions in the literature by prominent scholars and policy makers. There are three main objectives in this review: first, to discuss the effects of money laundering on a country’s macro-economy; second, to seek measurements from other scholars; and finally, to seek previous findings about the magnitude and the flows of money laundering. Design/methodology/approach In the first part, this paper outlines the effects of money laundering on macroeconomic conditions of a country, and then the second part reviews the literature that measures the magnitude of money laundering from an economic perspective. Findings Money laundering affects a country’s economy by increasing shadow economy and criminal activities, illicit flows and impeding tax collection. To minimise these negative effects, it is necessary to quantify the magnitude of money laundering relative to economic conditions to identify the most vulnerable aspects of money laundering in a country. Two approaches are used in this study: the first is the capital flight approach, as money laundering will cause flows of money between countries; the second is the economic approach for measuring money laundering through economic variables (e.g. tax revenue, underground economy and income generated by criminals) separately from tax evasion. Originality/value The paper offers new insights for the measurement of money laundering, especially for developing countries. Most methods in quantifying money laundering have focused on developed countries, which are less applicable to developing countries.

scholarly journals Strategic Innovation, Knowledge Sharing and Policy Innovation Factors In E-Government in Developing Countries: The Case of Tanzania

2015 ◽  
Vol 30 (3) ◽  
pp. 91-123
Author(s):  
Lupilya Emmanuel Constantine ◽  
Park J Hun
Keyword(s):  
Developing Countries ◽  
Knowledge Sharing ◽  
Government Policy ◽  
National Level ◽  
Policy Innovation ◽  
Think Tank ◽  
Government Institutions ◽  
Strategic Innovation ◽  
Research Alliance ◽  
Innovation Knowledge

The existing gap from strategic innovation in e-government knowledge creation has affected the effort to timely develop e-government policy in Tanzania. This paper is an attempt to describe multiple innovations outside the Tanzania that involve developing country collaboration, institutional innovation and resources and their linkages to national e-government-think tank. The central argument of this paper is to find factors for enhancing the development of national e-government policy innovation outside Tanzania. We developed national e-government policy framework to orchestrate local innovation and forge ahead of the e-government policy innovation. To do so, we developed and administered a set of the questionnaire from government and private institutions, entrepreneurship and social network group. Data collections were conducted from July 15 to September 20, 2015. The exploratory factor analysis using SPSS version 22 was employed to analyze data for strategic innovation, knowledge sharing, and e-government policy innovation. Four critical factors were identified as the key driver to the success of national e-government policy innovation: Coordinate knowledge sharing on e-government policies in the nation and international institutions; empower and coordinate e-government-think tank forum locally and nationally; create a technoculture society at local and national level; and Support e-government research alliance & engagement respectively. In additional, three developing countries were used as a reference model to support these findings. Our conclusion shows how national e-government-think tank and research alliance can become a strategic innovation in e-government towards coordinating knowledge sharing within private and government institutions. This can represent as "valuable and intellectual assets" for government institutions' stability and change towards national e-government policy innovation process.

scholarly journals An Analysis of Host Country Characteristics that Determine FDI in Developing Countries: Recent Panel Data Evidence

2009 ◽  
Vol 14 (2) ◽  
pp. 71-96 ◽  
Author(s):  
Muhammad Tariq Majeed ◽  
Eatzaz Ahmad
Keyword(s):  
Developing Countries ◽  
Panel Data ◽  
Multinational Corporations ◽  
Host Country ◽  
Negative Impact ◽  
Positive Impact ◽  
Negative Effects ◽  
Host Countries ◽  
Country Characteristics ◽  
General Method Of Moments

This paper analyzes a range of host country characteristics that determine foreign direct investment (FDI) flows to developing countries, using panel data on 72 countries for the period 1970-2008. Keeping in view the endogeneity problem of the chosen host country’s characteristics, the model is estimated using the General Method of Moments (GMM) technique. The analysis shows that gross domestic product (GDP), economic growth, and per capita income positively affect FDI—a result consistent with the market-seeking behavior of multinational corporations (MNCs). Furthermore, we find that remittances have a significant and positive impact on FDI. On the other hand, inflation and the balance of payments deficit have negative effects on FDI. MNCs are attracted to host countries that are outward looking and follow trade-promoting policies. This is confirmed by the positive effect of openness on FDI flows to developing countries. The study also finds that the effect of military expenditures on FDI is negative and significant. Finally, our analysis finds that the real exchange rate has a significantly negative impact on FDI.

Macroeconomic fundamentals, institutional quality and shadow economy in OIC and non-OIC countries

2022 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Shabeer Khan ◽  
Mohd Ziaur Rehman
Keyword(s):  
Shadow Economy ◽  
Random Effect ◽  
Generalized Method Of Moments ◽  
Institutional Quality ◽  
Estimation Methods ◽  
Full Sample ◽  
Content Type ◽  
Macroeconomic Fundamentals ◽  
Negative Effect ◽  
The Relationship

PurposeThe purpose of this paper is to analyze the relationship between macroeconomic fundamentals, intuitional quality and shadow economy.Design/methodology/approachBy utilizing data setspanning from 2004 to 2015 of 141 countries, the study has employed advanced panel technique, i.e. Generalized Method of Moments (GMM) method. In order to check consistency of the results, the study also used fixed effect and random effect for robustness.FindingsThe study finds that for the full sample, institutional quality has negative effect on shadow economy while macroeconomic fundaments effect shadow economy differently. After splitting the sample into Organization of Islamic Cooperation (OIC) and non-OIC countries subsamples, it observes same influence of macroeconomic fundaments and institutional quality on shadow economy, but the effect of macroeconomic fundaments and institutional quality on shadow economy is less observed for OIC countries. The results are found consistence by using different estimation methods.Originality/valueThe current literature has focused on estimating the size of shadow economy and literature linking the macroeconomic fundaments, institutional quality and shadow economy is scarce. Additionally, this study provides the evidence for cross comparison between OIC economies and non-OIC economies.

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