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Developing Economies (developing + economy)
Selected AbstractsCorporate Governance of Banks in Developing Economies: concepts and issuesCORPORATE GOVERNANCE, Issue 3 2004T. G. Arun This paper discusses the corporate governance of banking institutions in developing economies. This is an important issue given the essential role that banks play in the financial systems of developing economies and the widespread banking reforms that these economies have implemented. Based on a theoretical discussion of the corporate governance of banks, we suggest that banking reforms can only be fully implemented once a prudential regulatory system is in place. An integral part of banking reforms in developing economies is the privatisation of banks. We suggest that corporate governance reforms may be a prerequisite for the successful divestiture of government ownership. Furthermore, we also suggest that the increased competition resulting from the entrance of foreign banks may improve the corporate governance of developing-economy banks. [source] The Wealth Effect on New Business Startups in a Developing EconomyECONOMICA, Issue 291 2006ALICE MESNARD The paper tests for nonlinearities in the wealth effect on self-employment, as can arise from startup costs or liquidity constraints. Using both nonparametric and parametric methods, we show that the relationship between the probability of a return migrant to Tunisia starting up a business and the stock of his savings repatriated at return is concave for almost the entire range of our data, though we find weak evidence of a convex relationship at very low wealth levels. Our results suggest that the aggregate self-employment rate is an increasing function of aggregate wealth, but a decreasing function of wealth inequality. [source] Agricultural Growth and Inter-Sectoral Linkages in a Developing EconomyJOURNAL OF AGRICULTURAL ECONOMICS, Issue 3 2000N. Gemmell Does growth in the manufacturing sector of an economy spillover to agriculture, or do sectors share similar growth rates only when they share some common exogenous stimuli? The limited number of investigations of this issue, for cross-sections of countries, have found some evidence in favour of spillovers, though the methodologies used cannot readily separate correlation from causation. Adapting the Feder (1982) model of sectoral externalities to a time-series context, we examine how far agricultural output in Malaysia has been affected by inter-sectoral spillovers. Our results suggest that expansion of manufacturing output, though associated with reduced agricultural output in the short-run, is associated with agricultural expansion over the long-run. Service output growth on the other hand seems to have been inimical to agricultural growth in both the short- and long-runs, while causality testing supports the case for spillovers rather than "common causes". Evidence on sectoral productivity is consistent with neoclassical arguments suggesting that the benefits of higher productivity in manufacturing tend to spill over to agriculture, encouraging productivity convergence. [source] Labour Policy and Determinants of Employment and Wages in a Developing Economy with Labour ShortageLABOUR, Issue 2 2010Ibrahim Mohamed Abdalla Using data from a sample of 1,099 workers, this paper investigates the determinants of employment and wages for workers in the United Arab Emirates. The paper further examines the wage distribution and the decomposition of the wage gap between the public and the private sectors. Results of the study are consistent with the dual labour market theory and indicate that the labour market in the United Arab Emirates is segmented based on sectors (public versus private) and types of workers (nationals versus non-nationals). The study concludes with a discussion of the implication of these findings for the effectiveness of labour and economic policy. [source] The Cameroonian Experience under OHADA: Business Organizations in a Developing EconomyBUSINESS AND SOCIETY REVIEW, Issue 2 2007CLAIRE MOORE DICKERSON First page of article [source] Private Provision of Infrastructure in Emerging Markets: Do Institutions Matter?DEVELOPMENT POLICY REVIEW, Issue 2 2006Sudeshna Ghosh Banerjee Governments in developing countries have encouraged private sector investment to meet the growing demand for infrastructure. According to institutional theory, the role of institutions is paramount in private sector development. A longitudinal dataset of 40 developing economies between 1990 and 2000 is used to test empirically how different institutional structures affect private investment in infrastructure, in particular its volume and frequency. The results indicate that property rights and bureaucratic quality play a significant role in promoting private infrastructure investment. Interestingly, they also suggest that countries with higher levels of corruption attract greater private participation in infrastructure. [source] FREE TRADE, ,PAUPER LABOUR' AND PROSPERITY: A REPLY TO PROFESSOR MISHANECONOMIC AFFAIRS, Issue 1 2006John Meadowcroft In an Economic Viewpoint published in the September 2005 edition of Economic Affairs, ,Can Globalisation Depress Living Standards in the West?', Professor E. J. Mishan argued that globalisation may reduce living standards in the West by decreasing the labour,capital ratio in developed countries as firms move production to countries where labour is cheaper and/or migrants to the West from the developing world bid down wage rates. In a reply to Professor Mishan's article, Dr John Meadowcroft argues that this view of globalisation is far too pessimistic and explains why free trade, not protection, will secure the prosperity of developed and developing economies. In a final comment, Professor Mishan responds to this critique of his analysis. [source] The Asset Management Industry in Asia: Dynamics of Growth, Structure, and PerformanceFINANCIAL MARKETS, INSTITUTIONS & INSTRUMENTS, Issue 1 2007Ingo Walter We examine the industrial organization and institutional development of the asset management industry in Asian developing economies,specifically in China, Indonesia, Korea, Malaysia, Singapore, Philippines, and Thailand. We focus on the size and growth of the buy-side of the respective financial markets, asset allocation, the regulatory environment, and the state of internationalization of the fund management industry in its key components,mutual funds, pension funds, and asset management for high net worth individuals. We link the evolution of professional asset management in these environments to the development of the respective capital markets and to the evolution of corporate governance. We find that the fund management industry occupies a very small niche in domestic financial systems that are dominated by banks. At the same time, we find that its growth has been very rapid in the early 2000s and we suggest that this is likely to persist as the demand for professional management of financial wealth in the region develops and as the pension fund sectors of the respective economies are liberalized to allow larger portions of assets to be invested in collective investment schemes. [source] Can Remittances Spur Development?INTERNATIONAL STUDIES REVIEW, Issue 1 2006A Critical Survey The increasing volume of global remittances has impressed policymakers and social scientists alike. Besides outpacing official development assistance and private capital flows, remittances have proven markedly stable and counter-cyclical. They represent an essential nondebt creating, safety-net vehicle administered by extended families and local communities rather than provincial and national governments. This essay surveys the recent pattern of remittances and critically examines the theoretical and empirical literature on their determinants and welfare impact. The argument is made that the developmental contribution of remittances can be significantly enhanced through complementary macroeconomic policies in labor exporting countries and financial innovations in remittance transmission. Enhanced policy coordination on temporary transnational worker migration,as facilitated by Mode 4 of the General Agreement on Trade in Services,can prove instrumental in helping remittances offset the traditional brain drain besetting developing economies. [source] Foreign aid and long-run economic growth: empirical evidence for a panel of developing countriesJOURNAL OF INTERNATIONAL DEVELOPMENT, Issue 1 2006Georgios Karras Abstract This paper investigates the relationship between foreign aid and growth in per capita GDP using annual data from the 1960 to 1997 period for a sample of 71 aid-receiving developing economies. The results show that the effect of foreign aid on economic growth is positive, permanent, statistically significant, and sizable: raising foreign aid by $20 per person of the receiving country results in a permanent increase in the growth rate of real GDP per capita by approximately 0.16,per,cent. Using an alternative foreign-aid measure, a permanent increase in aid by 1,per,cent of the receiving economy's GDP permanently raises the per capita growth rate by 0.14 to 0.26,per,cent. Copyright © 2006 John Wiley & Sons, Ltd. [source] Labour standards, democracy and wages: some cross-country evidenceJOURNAL OF INTERNATIONAL DEVELOPMENT, Issue 7 2005Thomas I. Palley The international community is divided over labour standards. Opponents claim that standards are protectionist. Proponents say they benefit developing economies by improving governance and income distribution. This paper presents evidence supporting the case for labour standards. Using cross-country data from the second half of the 1980s and the first half of the 1990s, it shows that labour standards are associated with improved governance and reduced corruption. Labour standards also improve income distribution and raise wages. The results qualify Rodrik's (1999) findings about democracy and wages. Labour standards rather than democracy cause higher wages, but democracy may still matter indirectly by promoting labour standards. Copyright © 2005 John Wiley & Sons, Ltd. [source] Activities of daily living among St Petersburg women after mild strokeOCCUPATIONAL THERAPY INTERNATIONAL, Issue 3 2007Ann Johansson Abstract The aim of the present study was to determine how women living in St Petersburg, Russia, who have had a mild stroke, describe their performance in activities of daily living (ADL) and to elicit possible causes of their occupational dysfunction. Thirty-six women who had experienced a mild stroke and been referred to a rehabilitation centre participated in the study. Data collection was conducted through interviews, including the ,ADL Staircase' and a modified ,Frenchay Activities Index for Stroke Patients'. Additional data were collected through field notes and information from team members and relatives. The results showed that women who have had a mild stroke and ADL limitations experience occupational dysfunction in ADL that is most often caused by a combination of overprotection from relatives, the women's own feelings of anxiety and insecurity, and an overemphasizing of their disability. The results are limited, based on the small sample and restricted geographic area. There is a need to further investigate how individuals who have had a mild stroke can be physically and socially rehabilitated and reintegrated into the community in countries with developing economies such as Russia. Copyright © 2007 John Wiley & Sons, Ltd. [source] Pricing-to-Market and Market Structure,OXFORD BULLETIN OF ECONOMICS & STATISTICS, Issue 2 2008Matteo Bugamelli Abstract Stimulated by imperfect competition/sticky prices framework of the new open economy macroeconomics, empirical research has reconsidered the role of exchange rates in international adjustment. This paper reassesses the link between exchange rates and traded good prices by estimating pricing-to-market equations for the five main euro area countries over the period 1990,99. We minimize selection biases by keeping all manufacturing products and all destination markets and show that exchange rate pass-through (ERPT) is much larger, almost complete, than previously estimated. Thanks to a huge variability in terms of exchange rate variations, products and destination markets, we can map differences in ERPT into market structures and, at the same time, reconcile our results with the empirical literature. We find that ERPT is highly incomplete for sales by oligopolistic industries into advanced economies, indeed in the order of 50,60% as previously estimated. ERPT is instead almost complete in emerging and developing economies where therefore exchange rate movements can help adjust external imbalances. We also find that ERPT is largely asymmetric: it is almost complete after an appreciation of the exporter's currency, rather incomplete after a depreciation. This result is very robust across specifications. [source] EMPIRICS OF CHINA'S OUTWARD DIRECT INVESTMENTPACIFIC ECONOMIC REVIEW, Issue 3 2009Yin-Wong Cheung It is found that China's investments in developed and developing countries are driven by different sets of factors. Subject to the differences between developed and developing countries, there is evidence that: (i) both market-seeking and resource-seeking motives drive China's ODI; (ii) Chinese exports to developing countries induce China's ODI; (iii) China's international reserves promote its ODI; and (iv) Chinese capital tends to agglomerate among developed economies but diversify among developing economies. Similar results are obtained using alternative ODI data. We do not find substantial evidence that China invests in African and oil-producing countries mainly for their natural resources. [source] Transformational Leadership and Organizational Innovation: The Roles of Internal and External Support for Innovation,THE JOURNAL OF PRODUCT INNOVATION MANAGEMENT, Issue 3 2009Lale Gumusluo Leadership has been suggested to be an important factor affecting innovation. A number of studies have shown that transformational leadership positively influences organizational innovation. However, there is a lack of studies examining the contextual conditions under which this effect occurs or is augmented. Therefore, this study aimed to investigate the impact of transformational leadership on organizational innovation and to determine whether internal and external support for innovation as contextual conditions influence this effect. Organizational innovation was conceptualized as the tendency of the organization to develop new or improved products or services and its success in bringing those products or services to the market. Transformational leadership was hypothesized to have a positive influence on organizational innovation. Furthermore, this effect was proposed to be moderated by internal support for innovation, which refers to an innovation supporting climate and adequate resources allocated to innovation. Support received from external organizations for the purposes of knowledge and resource acquisition was also proposed to moderate the relationship between transformational leadership and organizational innovation. To test these hypotheses, data were collected from 163 research and development (R&D) employees and managers of 43 micro- and small-sized Turkish entrepreneurial software development companies. Two separate questionnaires were used to collect the data. Employees' questionnaires included measures of transformational leadership and internal support for innovation, whereas managers' questionnaires included questions about product innovations of their companies and the degree of support they received from external institutions. Organizational innovation was measured with a market-oriented criterion developed specifically for developing countries and newly developing industries. Hierarchical regression analysis was used to test the hypothesized effects. The results of the analysis provided support for the positive influence of transformational leadership on organizational innovation. This finding is significant because this positive effect was identified in micro- and small-sized companies, whereas previous research focused mainly on large companies. In addition, external support for innovation was found to significantly moderate this effect. Specifically, the relationship between transformational leadership and organizational innovation was stronger when external support was at high levels than when there was no external support. This study is the first to investigate and empirically show the importance of this contextual condition for organizational innovation. The moderating effect of internal support for innovation, however, was not significant. This study shows that transformational leadership is an important determinant of organizational innovation and encourages managers to engage in transformational leadership behaviors to promote organizational innovation. In line with this, transformational leadership, which is heavily suggested to be a subject of management training and development in developed countries, should also be incorporated into such programs in developing countries. Moreover, this study highlights the importance of external support in the organizational innovation process. The results suggest that technical and financial support received from outside the organization can be a more important contextual influence in boosting up innovation than an innovation-supporting internal climate. Therefore, managers, particularly of micro- and small-sized companies, should play external roles such as boundary spanning and should build relationships with external institutions that provide technical and financial support. The findings of this study are especially important for managers of companies that plan to or currently operate in countries with developing economies. [source] AN INVESTIGATION OF HOUSEHOLD REMITTANCE BEHAVIOUR: EVIDENCE FROM THE UNITED KINGDOM,THE MANCHESTER SCHOOL, Issue 6 2007KEN CLARK Overseas remittances are a vital source of income for many developing economies. In this paper we empirically model the remittance behaviour of a diverse set of ethnic minority households in England and Wales using survey data. Our results indicate that the probability of remitting is higher for richer households and for those containing more immigrants. Measures of social distance also appear to influence the sending of remittances. Significant ethnic differences in the incidence of remitting and the timing of payments remain after controlling for these and other factors. [source] LIMITS TO COMPETITION AND REGULATION IN PRIVATIZED ELECTRICITY MARKETSANNALS OF PUBLIC AND COOPERATIVE ECONOMICS, Issue 4 2009Hulya Dagdeviren ABSTRACT,:,Privatization of electricity has been extensive both in the developed and the developing world. Failures in various areas have led to the emergence of a new consensus which regards competitive pressures and regulation as crucial for utility privatizations to work. This review paper presents a critical evaluation of this newly found wisdom with reference to the developing economies. The experience in the developed world, especially in the USA and the UK, has been used to draw conclusions for the developing economies. Overall, the paper highlights the problems associated with the ,competitive model' both in the developed and developing world and points to the potential instability in private competitive power supply systems. It also examines the degree to which regulation can be a panacea for market failures and structural problems under private provision. [source] Exporting the German Model: The Establishment of a New Automobile Industry Cluster in ShanghaiECONOMIC GEOGRAPHY, Issue 1 2005Heiner Depner Abstract: Recent work has provided evidence that the establishment of new industry clusters cannot be jump-started through policy initiatives alone. This evidence does not imply, however, that the genesis of a new cluster cannot be planned at all. Especially in the context of a developing economy, it seems useful to reinvestigate the relation among economic development, the strategies of multinational firms, and state intervention in this respect. Drawing from the case of the automobile industry and its supplier system in Shanghai in which German firms play an important role, we provide empirical evidence of the evolution of a new cluster that is supported by the state in various forms and characterized by a focal, hierarchically structured production system. We use a multidimensional approach to clusters, which leads to a more nuanced understanding of the evolution and growth of a cluster than that provided by earlier accounts. This approach allows us to distinguish the development of the Shanghai automobile industry cluster along its vertical, horizontal, external, institutional, and power dimensions. We provide evidence that another dimension,"culture",plays an important role, especially in its relation to issues of power and institutions. The role of this dimension is demonstrated in the case of German firms, which tap into the Chinese innovation system. This system is characterized by particular business relations, institutions, norms, and various social practices that are new to German firms. We demonstrate how this difference creates problems in establishing local production and supplier relations and how these problems can be overcome. [source] Capital Inflows, Resource Reallocation and the Real Exchange Rate,INTERNATIONAL FINANCE, Issue 2 2008Emmanuel K. K. Lartey A large capital inflow to a developing economy can potentially cause a real exchange rate appreciation that is detrimental to the prospects of its tradable sector; a phenomenon known as the Dutch Disease. I analyse the effects of both the level and share of capital inflow on resource reallocation and real exchange rate movements in a small open economy. I find that there exists a trade-off between resource reallocation and the degree of real exchange rate appreciation. In particular, the less labour the tradable sector loses to the non-tradable sector, the greater is the real exchange rate appreciation. This result is driven by the share of investment accounted for by foreign capital, and suggests that an emerging market economy that adopts a production technique which utilizes a greater share of foreign capital relative to domestic capital will be more susceptible to the Dutch Disease following an increase in capital inflow. The results also imply that a policy designed to minimize real exchange rate appreciation during capital inflow episodes should encompass measures aimed at stabilizing prices of non-tradables. [source] Public thinking about poverty: why it matters and how to measure itINTERNATIONAL JOURNAL OF NONPROFIT & VOLUNTARY SECTOR MARKETING, Issue 1 2007Floyd H. Bolitho Meeting the Millennium Development Goals partly depends on not-profit organizations raising more funds, which in turn depends on having reliable and valid assessments of where donor and recipient perceptions are out-of-line. Across samples from a developed economy Australia (n,=,754), and a developing economy Mala,i (n,=,387), we explored the factor structure of the ,Causes of Third-World Poverty Questionnaire' (CTWPQ, D. Harper and colleagues, 1990). In addition to four core factors suggested through an original (N,=,89) sample from the UK (Blame [1] the Poor, [2] Nature, [3] Third World governments, and [4] International Exploitation), combined Exploratory and Confirmatory Factor Analyses (CFA) differentiate a possible fifth factor germane to the social marketing of aid, blame [5] Conflict. Australians and Mala,ians differed significantly on all five factors, with Mala,ians blaming poverty more on situations and less on the poor themselves, compared to Australian counterparts. Our findings are tentative because the CTWPQ item pool requires expanding to represent underlying constructs more fully. Nonetheless, instruments like the CTWPQ can in future be used to identify and monitor in-context psychosocial barriers to donation, enabling not-profit marketing organizations to raise funds more efficiently and effectively. Copyright © 2006 John Wiley & Sons, Ltd. [source] OPTIMAL FOREIGN BORROWING REVISITEDTHE JAPANESE ECONOMIC REVIEW, Issue 3 2010HYEON-SEUNG HUH Foreign capital has become increasingly important in financing investment and growth in developing countries. Foreign capital flows, however, can be volatile as is evident from the recent financial crises. It has also recently been noted by researchers that there is little systematic empirical evidence that foreign capital contributes to the economic growth of developing countries. In this context, this paper attempts to theoretically reevaluate the borrowing behaviour of a developing economy that relies on foreign borrowing for its capital formation. In particular, this paper investigates the implications of different lending policies of international financial institutions. It is found that no matter whether the borrowing interest rate increases with the level of foreign debt per capita or with the foreign-capital/total-capital ratio, the economy always moves toward the stationary state. The result holds even when the representative agent regards the interest rate given as constant. This implies that foreign borrowing does help economic growth, irrespective of lending policies of international financial institutions. [source] LABOUR MARKET DISTORTION, TECHNOLOGY TRANSFER AND GAINFUL EFFECTS OF FOREIGN CAPITAL,THE MANCHESTER SCHOOL, Issue 2 2005SARBAJIT CHAUDHURI This paper purports to show that even in a 2 × 2 full-employment production structure, an inflow of foreign capital may be welfare improving in the presence of labour market distortion. However, the existence of labour market distortion is a necessity to obtain this unconventional result. If an inflow of foreign capital is accompanied by labour market reform, the possibility of welfare gain due to foreign capital diminishes. Therefore, there may exist a trade-off between the policies of growth with foreign capital and labour market reform. However, if the inflow of foreign capital is accompanied by a labour-augmenting type technology transfer, it is found that investment liberalization policy and labour market reform may be undertaken concurrently in a developing economy. [source] Firm Efficiency in a Transitional Economy: Evidence from VietnamASIAN ECONOMIC JOURNAL, Issue 1 2008Thi Bich Tran C31; O12; R38 The paper examines efficiency performance of the non-state small and medium manufacturing industries in a transitional and developing economy. Using firm level data in Vietnam from 1996 and 2001, cross-sectional models are estimated using the stochastic frontier method. The results show a considerable variation in efficiency levels among firms and that a greater use of family labor and a metropolitan location are associated with improvement in technical efficiency. The results indicate few benefits from direct government financial and non-financial assistance to businesses. [source] Training and Technology TransferAUSTRALIAN ECONOMIC PAPERS, Issue 1 2003Neil Campbell This paper analyses technology transfer from a multinational corporation (MNC) to a developing economy via training of local workers by the MNC. The paper analyses the determinants of the level of training by the MNC assuming a local entrant can subsequently hire MNC,trained workers and compete with the MNC. It is shown that a small training subsidy paid by the host government may cause the MNC to switch from entry,deterring behaviour to entry,accommodating behaviour. Such a subsidy will cause an increase in the number of skilled workers but may increase or decrease the domestic welfare of the developing country. [source] | |||||||||||||