Gender, Employment, and Domestic and External Savings in Guatemala

The objective of this paper is to analize the role, for the case of Guatemala, that the ratio of female to male employment plays in the mobilization of internal savings, in the trade deficit, as well as in the economic growth constrained by the balance of payments model. The results indicate that said ratio increases savings, reduces the deficit in the trade account and eases the balance of payments constraint on economic growth. It is recommended that Guatemalan authorities undertake extraordinary measures to encourage female participation. The originality of the paper resides in being the first one to highlight the role of the ratio of female to male employment on the reduction of the deficit in the trade account and in showing that this ratio can constitute a constraint to economic growth. The paper concludes stressing the importance of promoting female participation.

The Lie Algebraic Approach for Determining Pricing for Trade Account Options

In recent years, many advanced techniques have been applied to financial problems; however, very few scholars have used the Lie theory. The purpose of this study was to examine the options for a trade account through Lie symmetry analysis. According to our results, it is effective for determining analytical solutions for pricing issues and solving other partial differential equations. The proposed solution can be used by further researchers or practitioners in option pricing problems for better performance compared with the classical Black–Scholes model.

Features of Financial Policy Development by Russian Companies in Today's Conditions

The chapter includes the proposals regarding the development of rational financial policies by Russian companies in today's conditions. The authors have identified the following areas of difficulties: sales; deficit of financial resources for investment in development and distribution; instability and unpredictability of external conditions. Changes in price policies, optimization of components and volume of trade account receivables are some of the suggested ways of how to improve company's sales. The solution to the lack of financial resources for company's investment development can be found through selecting more effective forms of financing. The authors also point out the limitations in investment activities' financing under the conditions of current import substitution while suggesting author's own and original composition of indicators for innovation activity. The study leads the readers to the conclusion that the state today faces the challenge of creating favorable conditions for strengthening the financial stability of companies.

Why Is Pollution from US Manufacturing Declining? The Roles of Environmental Regulation, Productivity, and Trade

Between 1990 and 2008, air pollution emissions from US manufacturing fell by 60 percent despite a substantial increase in manufacturing output. We show that these emissions reductions are primarily driven by within-product changes in emissions intensity rather than changes in output or in the composition of products produced. We then develop and estimate a quantitative model linking trade with the environment to better understand the economic forces driving these changes. Our estimates suggest that the implicit pollution tax that manufacturers face doubled between 1990 and 2008. These changes in environmental regulation, rather than changes in productivity and trade, account for most of the emissions reductions. (JEL F18, H23, L60, Q52, Q53, Q56, Q58)

The contribution of Agriculture Sector in the Economy of Afghanistan

The purpose of this study is to identify the contribution of agriculture to the Afghanistan economy by examining the experience of 34 provinces as documented in commissioned case studies and various secondary sources (CSO directory, FAO reports, government publications, USAID reports, NGO reports, journals, and websites) for the period 2016 - 2017. Agriculture is the backbone of the Afghan economy, the contributions of agriculture to the country's gross demotic product (GDP) is 23% in 2017, while the labor force engaged in this sector is around 61.6%. The annual growth rate in Afghanistan is predictable 3.6%. Afghanistan produces organic fruits, nuts, grain, vegetables and livestock products including cashmere, skin, wool, and a significant amount of these commodities is moving towards the export market. Agriculture represents about one-quarter of national GDP and is the second largest sector after services. Over the 70 % of the population are poor living in rural areas, and agriculture plays a significant role in their livelihoods. The most Afghan farms are very small, and their productivity is low over the years that farmers produce to satisfy the food needs of their household, with limited agricultural production entering commercial marketing channels and the trade account deficit overall. The GDP including opium was US$ 20.3 billion with GDP per capita of US$ 697. The agricultural sector is entirely run by private enterprises, including farmers, cooperatives, input suppliers, herders, agribusiness processors, and exporters.

Trade Imbalance and Entrepreneurial Activity: A Quantitative Panel Data Analysis

Shale Oil export from the United States overseas today depicts the need for the United States to reduce its negative trade balance sheet and Nigeria’s wish to improve agricultural exports reflects its willingness to reduce its problem of oil dependence. Net Savings accruing from exporting capabilities have strong consequences for trade and specifically for balance of payment and country specific trade account. Its positive effect on net trade is often affected by strong domestic consumption of foreign imports leading to trade imbalances, and capital flight. This study investigates the relationship between savings, exports and net trade using quantitative techniques by considering panel data for Nigeria and the United States, It was found that net savings from trade and exports promote net trade positively, and that imports affects net trade negatively since business were probably not importing to promote further production activities causing trade deficit and negative imbalance.

An approach to improve service trade account of Korea

Purpose The purpose of this paper is to quantitatively confirm whether hosting the Winter Olympic Games can improve tourism balance or increase the number of inbound tourists, and to discuss how Korea could maximize this opportunity. It also attempts to identify other critical variables for improving tourism balances and further suggests that the certain characteristics of participating nation’s patterns of medal wins at the Games should be better understood to contribute to attracting more tourists. Design/methodology/approach For the quantitative analyses of the relationship between tourism balance and the Games, Newey-West Hac estimation is used to correct autoregression for seven host countries of the Winter Olympic Games in last 24 years. For the analyses of characteristics of specialization in medal wins, conventional revealed comparative advantage model is used and tobit estimation method is applied. Findings This research confirms the role of hosting the Winter Games in improving tourism balance and increasing the number of inbound tourists. The findings from analyses on country specialization in sports largely coincide with the existing literature, however, in addition to confirming the well-established significance of key variables determining country performance like population and GDP, this study also discloses the role of other variables like team size and population density. Originality/value Major contributions of this paper are two-fold: it analyzes the Winter Olympic Games which was rarely tackled; and relates hosting the mega-sport events with the service trade account. As the host country of the 2018 Winter Olympic Games, the Republic of Korea has great potential to overcome that chronic deficit by attracting more inbound tourists. This study indicates how country characteristics of specialization can be used to enhance effectiveness of promotion strategy to attract a large number of foreign tourists to the PyeongChang Winter Games and consequently improve tourism balance.

OIL DEPENDENCE, INTERNATIONAL BORROWINGS, AND ECONOMIC INSTABILITY IN A SMALL OPEN ECONOMY

The existing literature dealing with mutual interactions between the extent of oil dependence and the possibility of belief-driven fluctuations unanimously ignores international loans. This simplified assumption disregards the fact that the relative magnitude of the financial account and the trade account exhibits an increasing trend. Faced with this deficiency in the literature, this paper develops a real business cycle model featuring oil dependence in domestic production and international loans, and examines whether both the presence of international borrowings and the dependence on imported energy will govern the emergence of belief-driven fluctuations.

Will Technological Progress Cure the "Advanced Technology Products" Trade Account Deficit?

In the debate about United States subsidies of private sector R&D, it is sometimes argued that the state of our technology is closely related to our current account deficits, particularly in what has been called the “Advanced Technology Products” (ATP) trade account. The corollary is that taking appropriate actions to increase research and development activities will both improve our technology and reduce the size of the ATP trade account deficit. The paper exams this proposition in a two-country two-firm intra-industry trade model, where firms play a two-stage quality-quantity game. The primary result of the paper is that if, as compared to its trading partners, the United States has about the same demand function but higher production costs then increases in R&D are likely to reduce an ATP trade account deficit. If, on the other hand, both costs and the value customers place on the product are high in the United States as compared to its trading partners, then increases in R&D are likely to increase the size of the ATP trade account deficit.