scholarly journals Does Capital Account Liberalization Spur Entrepreneurship: The Role of Financial Development

2021 ◽  
Vol 13 (16) ◽  
pp. 9238
Author(s):  
Chun Jiang ◽  
Amei Feng ◽  
Chunhuan Xiao
Keyword(s):  
Financial Development ◽  
Developing Economies ◽  
Negative Impact ◽  
Generalized Method Of Moments ◽  
Negative Relationship ◽  
Capital Account ◽  
Capital Account Liberalization ◽  
The Sustainable Development ◽  
Developed Economies ◽  
Domestic Credit

Entrepreneurship is regarded as the cornerstone of the sustainable development of a society. In this study, we empirically investigate the possible economic impacts of capital account liberalization on entrepreneurship. Using a panel dataset of 103 countries and regions and the system generalized method of moments (GMM), this paper demonstrates a positive relationship between capital account liberalization and entrepreneurship in developed economies whereas a negative relationship in developing economies. Furthermore, domestic financial development plays an important moderating role in the relationship between capital account openness and entrepreneurship. Specifically, the negative impact of capital account liberalization in developing economies is mitigated by a high degree of domestic credit and equity market development, the continuous deepening of finance and better financial inclusion. Our findings imply that domestic financial development is an essential prerequisite for the opening of a country’s capital account, especially for developing countries.

CAPITAL ACCOUNT, INSTITUTIONAL QUALITY, AND ECONOMIC GROWTH IN MENA COUNTRIES: A GMM APPROACH

2016 ◽  
Vol 11 (04) ◽  
pp. 1650016
Author(s):  
MOHAMED ILYES GRITLI ◽  
FATMA MARRAKCHI CHARFI
Keyword(s):  
Economic Growth ◽  
Negative Impact ◽  
Positive Impact ◽  
Empirical Studies ◽  
Generalized Method Of Moments ◽  
Institutional Quality ◽  
Capital Account ◽  
Financial Openness ◽  
Capital Account Liberalization ◽  
Mena Countries

Despite the diversity of theoretical and empirical studies, the question of capital account–economic growth relationship remains a controversial issue. The aim of the paper is to complete the existing evidence focusing on Middle East and North Africa (MENA) countries, while taking into account the institutional quality. In this context, various estimates were made by generalized method of moments (GMM) over the period of 1986–2012 for 11 countries. The results show that corruption and democratic accountability have a significant and negative impact on economic growth if capital account liberalization is enacted. However, the interaction term of bureaucracy quality and financial openness has a significant and positive impact on economic growth. These findings therefore show that the benefits of capital account liberalization are not unconditional, but are likely to depend upon the environment in which the liberalization occurs. Our paper contributes to the recent policy debates on the merits and demerits of capital account liberalization.

scholarly journals Innovative entrepreneurship in emerging and developing economies: the effects of entrepreneurial competancies and institutional voids

2021 ◽  
Author(s):  
Amirmahmood Amini Sedeh ◽  
Amir Pezeshkan ◽  
Rosa Caiazza
Keyword(s):  
Developing Countries ◽  
Developing Economies ◽  
Negative Impact ◽  
Institutional Voids ◽  
Developed Economies ◽  
Key Drivers ◽  
Innovation Barriers ◽  
Entrepreneurial Competencies ◽  
Emerging And Developing Countries ◽  
Different Levels

AbstractInnovative entrepreneurship is one of the key drivers of economic development particularly for less developed economies where the economic growth is at the forefront of policymakers’ agenda. Yet, the research on how various factors at different levels interact and bring about innovative entrepreneurship in emerging and developing countries remains relatively scarce. We address this issue by developing a multilevel framework that explains how entrepreneurial competencies attenuate the negative impact of innovation barriers. Our analysis on a sample of individuals from 24 economies, 17 developing and 7 emerging countries, reveals that entrepreneurial competencies become more instrumental for innovative entrepreneurship when general, supply-side, and demand-side innovation barriers are higher. The findings offer unique insights to policymakers particularly in developing countries interested in promoting innovative entrepreneurship and to entrepreneurs and investors seeking to establish and support innovative ventures.

scholarly journals An Examination of Drivers of Financial development: Evidence in West African Countries.

2018 ◽  
Vol 6 (1) ◽  
pp. 132-143
Author(s):  
Adewosi, O. Adegoke ◽  
Manu Donga ◽  
Adamu Idi ◽  
Buba Abdullahi
Keyword(s):  
Financial Development ◽  
Developing Economies ◽  
Negative Impact ◽  
Trade Openness ◽  
Government Expenditure ◽  
Political Stability ◽  
Vital Role ◽  
West African ◽  
African Countries ◽  
Panel Data Estimation

Financial development has been considered to play a vital role in promoting rapid growth and development of the developing economies. This paper examined the drivers of financial development in West African Countries. Benin Republic, Burkina Faso, Cape Verde, Ivory Coast, Gambia, Ghana, Guinea, Guinea Bissau, Liberia, Mali, Mauritania, Niger, Nigeria, Senegal, Sierra Leone and Togo over the period of 2000 to 2015, with the proper utilization of panel data estimation technique on the annual country data obtained from World Development Indicators (WDI) 2016 and Worldwide Governance Indicators (WGI) 2016. The results reveals that some important variables such as coefficient of rule of law, political stability, foreign direct investment, government expenditure, inflation and savings positively determined financial development. While, credit to private sector, GDP, interest rate, trade openness, and capital formation were found to negative impact on financial development. The study then recommends amongst others formulation and implementation of fiscal and monetary policies that foster financial development.

Comparative analysis of employment trend in African agriculture relative to other regions: a gender perspective

2020 ◽  
Vol 11 (3) ◽  
pp. 359-380
Author(s):  
Mmaduabuchukwu Mkpado ◽  
Ndidiamaka Sandra Mkpado
Keyword(s):  
Developing Economies ◽  
Function Analysis ◽  
Negative Relationship ◽  
Female Employment ◽  
Index Number ◽  
Content Type ◽  
Developed Economies ◽  
Irrigated Lands ◽  
African Agriculture ◽  
Total Labour

PurposeLucrative employment in agriculture is fundamental to poverty alleviation in Africa. The paper examined employment along gender, impact of materials and proportion of female employment in African agriculture.Design/methodology/approachTime series econometrics was employed in the framework of production function analysis involving 36 years of data.FindingsResults show that world labour in agriculture decreased from 49.77 to 40.04% but increased from 12.43 to 16.94% in Africa. World female employment in agriculture ranged from 40.56 to 42.81% and from 40.40 to 43.02% in developing economies, but decreased from 40.39 to 36.08% in developed economies. Total agricultural labour in Africa was negatively and significantly related to agricultural gross production index number (APIN).Research limitations/implicationsInteraction of cattle stock and females employed in agriculture was positive and significant at pooled African values. Interaction of irrigation facilities and female labour was positive and significant in West Africa. Interaction of cattle stock and total labour in Southern Africa had negative relationship with APIN. Interaction of total labour and irrigation had negative relationship with APIN in Africa. Insufficient agricultural facilities in terms of cattle stock and irrigation infrastructure for the populace exist. It recommends increased investments to expand irrigated lands and livestock.Practical implicationsAfrican governments need to use good political will to effect the needed transformation in agriculture. It is possible for agriculture to offer lucrative employment to both males and females in less developed world as in developed economies.Originality/valueThe paper noted very limited agricultural facilities in terms of cattle stock and irrigation facilities for the populace engaged in agriculture. It recommends investments to expand irrigated lands and livestock.

scholarly journals Financial sector development convergence in Africa: Evidence from bank- and market-based measures

2019 ◽  
Vol 8 (4) ◽  
pp. 166 ◽  
Author(s):  
Yakubu Awudu Sare ◽  
Eric Evans Osei Opoku ◽  
Muazu Ibrahim ◽  
Isaac Koomson
Keyword(s):  
Financial Markets ◽  
Financial Development ◽  
Generalized Method Of Moments ◽  
Financial Sector ◽  
Developed Countries ◽  
African Countries ◽  
Development Indicators ◽  
Developed Economies ◽  
Financial Sector Development ◽  
Catch Up

In this paper, we employ data from 46 African countries over the period 1980–2014 to examine financial sector development convergence, using bank- and market-based measures of financial development. Within the framework of the generalized method of moments (GMM), we present evidence that both the bank– and market–based financial sector development in Africa diverge over time. However, we find strong evidence of financial development divergence when using bank-based financial sector development indicators whereas this evidence is weaker for market-based indicators. Given the divergence in the level of finance, the gap between countries with underdeveloped and well–developed financial markets will continue to widen as financially less developed countries do not appear to catch-up with the financially more developed economies.  Keywords: Financial development; divergence, convergence, AfricaJEL Classification: F15, F36, G01, O55

scholarly journals The Chair’s Summing Up Independent Evaluation Office - IMF advice on Capital Flows Executive Board Meeting 20/93 September 18, 2020

Policy Papers ◽  
2020 ◽  
Vol 20 (41) ◽  
Author(s):  
Keyword(s):  
Capital Flows ◽  
Technical Assistance ◽  
Developing Economies ◽  
Capital Flow ◽  
Policy Framework ◽  
Capital Account ◽  
Major Advance ◽  
Capital Account Liberalization ◽  
Management Measures ◽  
Independent Evaluation

Executive Directors welcomed the report of the Independent Evaluation Office (IEO) on IMF Advice on Capital Flows. Directors appreciated the high quality of the report, and its thematic and background country studies. Directors welcomed the finding that the adoption of the Institutional View (IV), along with the development of other frameworks and additional tools, had represented a major advance in the Fund’s policy framework to provide systematic advice to member countries on the management of capital flows and capital account liberalization. Directors also noted the conclusion that, in its application, the Fund had generally followed the IV and other policy frameworks to ensure that the advice was consistent, tailored to country circumstances, and evenhanded across countries. Directors welcomed that capital flow management measures (CFMs) have generally not been used to substitute for warranted policy adjustments. Directors also welcomed the finding that most authorities broadly support the IV’s sequenced framework to capital account liberalization and appreciated the Fund’s specific advice in many cases, especially in the context of technical assistance. More recently, faced with the abrupt capital flow reversals during the COVID-19 crisis, Directors noted that emerging markets and developing economies generally followed a multi-pronged approach broadly consistent with the IV framework and made relatively little use of CFMs.

scholarly journals Welfare Impact of Globalization in Developing Countries: Examining the Mediating Role of Human Capital

Economies ◽  
2019 ◽  
Vol 7 (3) ◽  
pp. 84 ◽  
Author(s):  
Olagunju ◽  
Ogunniyi ◽  
Oguntegbe ◽  
Raji ◽  
Ogundari
Keyword(s):  
Developing Countries ◽  
Human Capital ◽  
Mortality Rate ◽  
Child Mortality ◽  
Developing Economies ◽  
Negative Impact ◽  
Unobserved Heterogeneity ◽  
Generalized Method Of Moments ◽  
The Poor ◽  
Child Mortality Rate

Despite remarkable progress in the fight against poverty during the past few decades, the proportion of the poor living in developing countries is still on the high side. Many countries have promoted integration as an important development strategy; however, its impact on welfare of the poor is still unclear. In this study, we examine the roles of education and health dimensions of human capital in globalization and its impact on the poverty gap and the child mortality rate using cross-country panel data covering 110 developing countries between 1970 and 2015. We use a model based on system generalized method of moments (SGMM) to control for unobserved heterogeneity and potential endogeneity of the explanatory variables. The empirical results reveal that globalization reduces poverty gap and child mortality rate, and that an increase in the stock of human capital in developing economies improves welfare outcomes. The study also finds that human capital strengthens the negative impact of globalization on poverty gap and child mortality rate. For example, should enrollment in secondary school in Nigeria (in 2013) be increased from 39.2% to 61.6%, on average, it could translate into 2508 fewer under-five child deaths. We recommend that interconnectedness and promotion of human capital development should constitute a fundamental component of policy mix targeted at enhancing reduction of poverty and child mortality rate in developing countries.

Sign in / Sign up

Export Citation Format

Share Document