Financial market development,global financial crisis and economic growth: evidence from developing nations

Emerging and frontier markets in Africa have witnessed various economic and financial reforms aimed at integrating the domestic markets into the global financial market to attract investment. Whether these reforms promote high economic growth remains inconclusive. The paper applies the pooled mean group estimation technique to empirically re-investigate the link between financial market development, global financial crisis, and economic growth in selected African economies. The results strongly support our hypotheses that stock market and banking sector development promotes economic growth in the selected countries. Moreover, financial crisis reduce the positive effects of both the stock market and banking sector developments on economic growth. The study suggests that both the banking sector and stock market are important to deliver the long-run economic growth that the African region desired. Moreover, effort should be made to enact policy measures that would ensure development of the stock market which has received inadequate attention.     

The physical environment as a global economic concern

From Aristotle to Scitovsky the nature and scope of human economy and economics have remained essentially the same, viz. the prudent/efficient/welfaremaximizing administration/utilization of the scarce resources (chrèmata, “choses utiles,” etc.) comprising the household and the expertise there-of. Aristotle’s protégé, Theophrastus (d. 287 B.C.), went to the extent of counseling that, for the “health and well-being” of all its members (including the livestock), theoikos “should be airy in the summer and sunny in the winter,” it no doubt going without saying that its roof should be kept in good repair. Today, it behooves us to critically re-examine our traditional concepts of wealth, “land,” “the environment,” and the socioeconomic unit whose storehouse of resources is to be managed aright, particularly along the history-of-thought lines presented here. Address delivered at a session on March 25, 1994 at the Midwest regional meetings of the Association for Social Economics, Chicago. The author thanks Tom Coffey (Latin), Brace Malina and Plinio Prioreschi (Italian) for linguistic assistance.     

Technology-based environmental health risks in developing nations

This paper addresses two questions: 1) To what extent are developing nations vulnerable to technology- related environmental health risks? 2) To what extent does the export of hazardous technologies and products contribute to overall levels of environmental health risk in developing nations? The paper focuses on three major types of environmental health risks: the failure of large-scale technological systems; the use or misuse of consumer goods, mechanical devices, and chemicals; and industrial emissions of toxic substances. In addition, three categories of hazardous exports are examined: hazardous products (e.g., pesticides), hazardous production processes (e.g., asbestos processing), and hazardous wastes (e.g., chemical and radioactive waste). The paper concludes that technology-based environmental health risks pose a significant public health problem in most developing nations, even when compared to much larger public health problems such as tropical and gastrointestinal diseases. Technology-based risks are growing in number and frequency. If developing and developed nations continue their current policies, these risks will grow at a significantly greater rate.     

Growth,inequality, and poverty reduction in developing countries: Recent global evidence

The study presents comparative global evidence on the transformation of economic growth to poverty reduction in developing countries, with emphasis on the role of income inequality. The focus is on the period since the early-mid-1990s when growth in these countries as a group has been relatively strong, surpassing that of the advanced economies. Both regional and country-specific data are analyzed for the $1.25 and $2.50-level poverty headcount ratios using World Bank Povcalnet data. The study finds that on average income growth has been the major driving force behind both the declines and increases in poverty. The study, however, documents substantial regional and country differences that are masked by this ‘average’ dominant-growth story. While in the majority of countries, growth was the major factor behind falling or increasing poverty, inequality, nevertheless, played the crucial role in poverty behavior in a large number of countries. And, even in those countries where growth has been the main driver of poverty-reduction, further progress could have occurred under relatively favorable income distribution. For more efficient policymaking, therefore, idiosyncratic attributes of countries should be emphasized. In general, high initial levels of inequality limit the effectiveness of growth in reducing poverty while growing inequality increases poverty directly for a given level of growth. It would seem judicious, therefore, to accord special attention to reducing inequality in certain countries where income distribution is especially unfavorable. Unfortunately, the present study also points to the limited effects of growth and inequality-reducing policies in low-income countries.     

The dynamics of fertility,family planning and female education in a developing economy

Unlike most empirical works on fertility analysis, this study is the first attempt to analyse the dynamics of fertility and its determinants with a particular focus on the role played by female education and family planning programmes in the context of a traditional society. The analysis is based on the application of the following dynamic time-series techniques in a multivariate context: cointegration, vector error-correction modelling and variance decompositions. These ‘dynamic’ tools are recently developed and hitherto untried in fertility analysis in the context of a poor developing economy, such as India. The results based on the above most recently developed methodology, broadly indicate that in the complex dynamic interactions, the importance of conventional ‘structural’ hypothesis as a ‘Granger-causal’ factor in bringing fertility down in the longer term cannot be denied. However, overall, in the short to long term, the findings appear to be more consistent with the recent ‘ideational’ hypothesis (emphasizing the critical role played by the two policy variables in the analysis- i.e. changes in the female secondary enrolment ratios, and family planning programmes- to ensure ‘initial’ fertility decline) than with the conventional ‘structural’ hypothesis (emphasizing a significant socio-economic structural change as a pre-condition for ‘initial’ fertility decline).     

The stability and breakup of nations: a quantitative analysis

This paper quantitatively analyzes the stability and breakup of nations. The tradeoff between increasing returns in the provision of public goods and the costs of greater cultural heterogeneity mediates agents’ preferences over different geographical configurations, thus determining the likelihood of secessions and unions. After calibrating the model to Europe, we identify the regions prone to secession and the countries most likely to merge. We then estimate the implied monetary gains from EU membership. As a test of the theory, we show that the model can account for the breakup of Yugoslavia and the dynamics of its disintegration. We find that economic differences between the Yugoslav republics determined the order of disintegration, but cultural differences, though small, were key to the country’s instability. The paper also provides empirical support for the use of genetic distances as a proxy for cultural heterogeneity.     

Family planning information: do low-income families need and want it?

A survey was conducted among nutrition aides in the U.S. to find out their attitudes toward family planning, and to determine if the low-income families in their case-loads had expressed an interest in family planning. First, a random sample of nutrition aides was drawn and questionnaires mailed to the selected aides. There was a 95% response rate (375) and an overwhelming endorsement of family planning. 93.7% declared their clientele needed information on family planning, and 2/3 reported they had been asked for birth control information from members of the families they serviced. Almost 97% of the sides gave some kind of birth control advice when asked for it, although mostly of a referral nature. 87% of the respondents said they would be willing to teach family planning if they were trained in it.     

关于我国发展农业循环经济的思考

农业是国民经济的基础,我国农业资源总量虽然较大,但人均占有量少。传统的掠夺性的农业发展模式对我国农业的可持续发展产生了巨大的压力。发展农业循环经济是我国实现农业经济的可持续发展的必然选择。     

The global business revolution, the cascade effect, and the challenge for firms from developing countries

The global business revolution since the 1980s has witnessedan unprecedented degree of industrial consolidation and concentrationof business power at a global level. Firms with powerful, globallyrecognised technologies and/or brands constitute the ‘systemsintegrators’ at the apex of extended supply chains. Thispaper examines the supply chains in four different sectors:aerospace, telecommunications, automobiles and beverages. Itfinds that these sectors have striking similarities in the wayin which the core systems integrators have stimulated industrialconcentration across the whole supply chain. This ‘cascadeeffect’ has profound implications for firms from developingcountries in catching up at the firm level.     

The effects of economic freedom,regulatory quality and taxation on the level of per capita real income: a preliminary analysis for OECD nations and non-G8 OECD nations

This study of the impact of economic freedom, regulatory quality and the relative burden of taxation on the level of per capita real income/GDP among OECD nations over the period 2003 to 2007 adopts a modified version of the overall economic freedom index computed by the Heritage Foundation (2013), one with the fiscal freedom and business freedom indices removed. This study then provides panel least squares fixed-effects estimates for five linear specifications/models. Each nation during this time frame can be regarded either as a nation per se or as a de facto ‘economic region’ within the OECD. The analysis first focuses upon all of the OECD nations and then, as a robustness test, subsequently focuses only on non-G8 OECD member nations. The estimations in this study all provide strong empirical support for the three central hypotheses proffered here, namely: (1) the higher the overall degree of economic freedom, the higher the per capita real income (GDP) level; (2) the higher the level of regulatory quality, the higher the level of per capita real income (GDP) and (3) the higher the overall tax burden, expressed as a per cent of GDP, the lower is the level of per capita real income (GDP).     

个体家庭、网络家庭和亲属圈家庭分析——历史与现实相结合的视角

本文对个体家庭、网络家庭和亲属圈家庭的构成方式、相互关系和变动特征进行了探讨。根据本项研究,近代之前传统时期具有抚幼养老功能的个体家庭受到官方和民间重视和推崇;父母在世时兄弟分家被抑制,网络家庭成长空间被挤压;亲属圈家庭是个体家庭获取社会资源的基础和主要的求助对象。近代以来,特别是解放以后,个体家庭的抚幼养老功能被分解;多子家庭亲子分爨形成网络家庭占据主导地位,养老责任由子代单元家庭分担,“家内”养老被“家际”养老所取代;亲属圈家庭对个体家庭的维系作用降低。当代社会,现代法律制度为双系网络家庭的产生创造了制度环境,人口控制政策下独生子女家庭大幅度增加是其产生的生物基础,城市化则成为双系网络家庭发展的推动力量;亲属圈由于已婚女儿与娘家构成网络家庭而削弱,并在部分两代及以上均为独生子女的家庭中趋于消失。     

On measuring the wealth of nations: the US economy, 1964-2001

This paper examines the methodology of Shaikh and Tonak (Measuringthe Wealth of Nations, 1994) underlying their calculation ofestimates of productive labour in the US economy from 1964 to2001. The focus is not on the results but on the methods thatgenerate them. The paper finds that the compromises made byShaikh and Tonak because of data unavailability are unreliable,and that better approximations are possible. On this latterbasis, the Shaikh and Tonak methodology can be used to providethe labour and wage estimates needed for empirical investigationsin the surplus-based tradition.     

Technological forecasting: Applicability,relevance and future crisis analysis in a developing country

The relevance of technological forecasting for a developing country with examples from the Indian scene is discussed. The applicability of some of the techniques of technological forecasting under Indian conditions is examined. It is shown that certain parameters in India follow systematic semilogarithmic and substitution trends, as in the case of developed countries, and these trends may be extrapolated into the future with some confidence.Using mainly extrapolation technique, a future crisis analysis for the Indian situation up to the year 2000 is presented. Steps have been suggested to avert the impending crisis. These include (1) determination of future supply and demand positions of various basic materials; (2) conducting Delphi exercises; (3) selection of the best alternatives in view of resource constraints using economic analysis; (4) wide dissemination of the results to make the decisionmakers and scientists aware of these possible solutions; (5) framing suitable policies and executing them, starting now, so that the desired future becomes a reality.     

Downsizing, wage inequality and welfare in a developing economy

This paper focuses on the cost cutting effects of firm downsizing in a developing economy. Using a dualistic production structure to depict a developing economy, the impacts of downsizing on wage inequality and social welfare are examined. Downsizing is revealed to not only narrow the wage gap between skilled and unskilled labor but also to raise the level of manufactured output and reduce the unemployment ratio in the urban sector. These effects improve the social welfare of the economy.     

Competitive strategies,innovation, and firm performance: an empirical study in a developing economy environment

This paper studies the relationships between competitive strategies, innovation, and firm performance within the context of Turkish manufacturing companies. The data were collected from top management of the firms via Computer Assistant Telephone Interviewing method. One hundred and forty manufacturing firms operating in various sectors including textile, automotive supply, computer and electronics provide the basis for this empirical research. In order to test our model, we employ structural equation modelling using partial least squares. The results show that competitive strategies such as cost-leadership and differentiation can lead to innovation, which, in turn, increase firm performance. Managers implement cost-leadership and differentiation strategies to take part in competitive market conditions; however, they should put additional importance on innovation that plays a significant role as a bridge between competitive strategies and firm performance.