Is globalization detrimental to financial development? Further evidence from a very large emerging economy with significant orientation towards policies

This study attempts to explore the relationship between globalization and financial development by endogenizing economic growth, population density, inflation and institutional quality for India during the period from 1971–2013. Using the more conclusivecombined cointegration method, the study provides evidence of cointegration among these variables. The long-run and short-run estimates from the ARDL model and causality tests, respectively, suggest that globalization in its all forms (political, social and economic) and its overall measure as well as inflation are detrimental to financial development, while economic growth and population density both promote financial development. Furthermore, the results also point out that institutional quality is not conducive to financial development in India, and there exists a feedback effect between financial development and inflation. Moreover, financial development is influenced by economic growth, institutional quality and population density.     

How strong is the causal relationship between globalization and energy consumption in developed economies? A country-specific time-series and panel analysis

We examine the causal relationship between globalization, economic growth and energy consumption for 25 developed economies using both time series and panel data techniques for the period 1970–2014. Due to the presence of cross-sectional dependence in the panel (countries from Asia, North America, Western Europe and Oceania), we employ the cross-sectional augmented IPS test to ascertain unit root properties. The cointegration test results indicate the presence of a long-run association between globalization, economic growth and energy consumption. Long-run heterogeneous panel elasticities are estimated through the common correlated effects mean group estimator and the augmented mean group estimator. The empirical results reveal that, for most countries, globalization increases energy consumption. In the USA and UK, globalization is negatively correlated with energy consumption. The causality analysis indicates the presence of the globalization-driven energy consumption hypothesis. This empirical analysis suggests insightful policy guidelines for policy makers using globalization as an economic tool to utilize energy efficiently for sustainable economic development in the long run.     

How anticipated regret influences the effect of economic animosity on consumers’ reactions towards a foreign product

We use regret theory to explain the negative effect of economic animosity on consumers’ reactions towards a foreign product (i.e., product judgment and reluctant to buy). We conduct our study in Taiwan by collecting data via an online survey. Our results show that consumers’ economic animosity increases their anticipated regret towards purchasing a foreign product originating from a target market of animosity. Specifically, anticipated regret is found to mediate the link between economic animosity and foreign product judgment, which in turns affects consumers’ reluctance to buy. Our study is the first to consider the role of anticipated regret in explaining the negative effect of economic animosity on consumers’ reactions towards a foreign product. We also contribute to research by introducing two antecedents of economic animosity: perceived economic competition and consumer ethnocentrism.     

Factors influencing food-choice behavior of African-American college students: implications for the foodservice industry

College students, particularly ethnic minorities in the US, are at a high risk for obesity and health complications. This study determines the type of foods that African-American college students are choosing to eat, and what factors influence those choices. Findings show that fresh fruits, whole grain bread, grilled chicken, and salad top the list of food choices. Knowledge of nutrition labels, gender, weight management, and eating facilities are among the factors found to influence these choices. Managerial implication of findings for the foodservice industry, and other interest groups are discussed. Directions for future research are given.     

Hiring and Separation Rates Before and after the Arab Spring in the Tunisian Labour Market

We seek to explore the hiring and separation rates in Tunisia before and after the Arab Spring based on quarterly business level data for 503 firms over the span of January 2007 to December 2012. Furthermore, we examine whether employers are willing to dismiss older workers to trigger an effective increase in mobility that will open new opportunities for the youth community. We build our analysis upon six main empirical models to study employment decisions reflected by major indicators such as the number of hiring, number of separations, total employment effects, male‐female ratio, age cohorts, labour mobility and net employment. The results show that the Arab Spring has created structural unemployment trends. In addition, we note that the 2008 global turmoil has fostered the firing level of employment. Our conclusions also indicate that the response of Tunisia's government to high unemployment rates caused by the financial meltdown in 2008 and the events in 2011 was not sufficient to remove the attached lingering effects that still distress the country's labour market. In addition, our findings emphasize the significant challenges faced by Tunisian youth that could be mitigated by efficient policy actions to incentivize training and development geared towards the private sector.     

The impact of piped water provision on infant mortality in Brazil: A quantile panel data approach

We examine the impact of piped water on the under-1 infant mortality rate (IMR) in Brazil using a recently developed econometric procedure for the estimation of quantile treatment effects with panel data. The provision of piped water in Brazil is highly correlated with other observable and unobservable determinants of IMR — the latter leading to an important source of bias. Instruments for piped water provision are not readily available, and fixed effects to control for time-invariant correlated unobservables are invalid in the simple quantile regression framework. Using the quantile panel data procedure in Chen and Khan [Chen, S., Khan, S., Semiparametric estimation of non-stationary censored panel model data models with time-varying factor. Econometric Theory 2007; forthcoming], our estimates indicate that the provision of piped water reduces infant mortality by significantly more at the higher conditional quantiles of the IMR distribution than at the lower conditional quantiles (except for cases of extreme underdevelopment). These results imply that targeting piped water intervention toward areas in the upper quantiles of the conditional IMR distribution, when accompanied by other basic public health inputs, can achieve significantly greater reductions in infant mortality.     

On locally optimal programs in the Robinson–Solow–Srinivasan model

In the context of a model due to Robinson, Solow and Srinivasan (the RSS model), we report results on the existence and characterization of locally optimal programs, a concept taken from theoretical physics. In particular, we propose a (new) transversality condition under which all locally optimal programs are good. An extended introduction places our theorems in the context of previous work on the existence question, including that on agreeable programs. It appears that there is no completely rational way to attack [the] problem without considering development programmes over an infinite horizon (Gale in Rev Econ Stud 34:1–8, 1967). The analysis of simple models is essential if we are to understand the corresponding situation for more complex models of the economy (Mirrlees and Stern in J Econ Theory 4:268–288, 1972). The technical convenience, for clear and quantitative results, of using an infinite time horizon is rather great (Hammond and Mirrlees in Models of economic growth, Wiley, New York, pp 283–299, 1973).     

Out-of-sample forecasting of the Canadian unemployment rates using univariate models

This article investigates the out-of-sample forecasting performance of some linear and nonlinear univariate time series models on the monthly seasonally adjusted Canadian unemployment rates during the 1980–2013 period. The findings reveal that nonlinear time series models better capture the asymmetry present in the unemployment rate series at short and long forecast horizons.     

Money and the production function: A case study of France

Zusammenfassung Geld in der Produktionsfunktion: Eine Fallstudie für Frankreich. — Dieser Aufsatz benutzt Daten für Frankreich (1950–1973), um zu prüfen, ob (a) reale Geldbest?nde eine Grenzproduktivit?t haben, die mit der physischer Inputs vergleichbar ist, und ob (b) die Einführung von Geld in die Produktionsfunktion aufgrund einer Vielzahl von Strukturver?nderungen zu einer Instabilit?t der Produktionsbeziehungen führt. Die Autoren ermitteln eine Zeitreihe für das Grenzprodukt des Geldes. Indem sie die Technik zeitlich variierender Parameter in ihrer Regressionsanalyse verwenden, finden sie heraus, da\ die Einführung von Geld in die aggregierte Produktionsfunktion keine Instabilit?t der Produktionsbeziehungen mit sich gebracht hat.

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Résumé La monnaie dans la fonction de production: une étude de cas pour la France. — En utilisant les données pour la France, 1950–1973, cet article essaie de tester (a) si les balances de monnaie réelle ont une productivité marginale qui est similaire à celle des inputs physiques, et (b) si l’introduction de la monnaie dans la fonction de production mène à l’instabilité dans les relations de production due à toutes sortes des changements structurels. Les auteurs présentent une série chronologique du produit marginal de monnaie. En utilisant une technique des paramètres variants sur le temps ils trouvent aussi que l’introduction de la monnaie dans une fonction agrégée de production ne mène pas à une instabilité dans les relations de production.

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Resumen Dinero en la función de producción: un estudio del caso de Francia. — Usando datos de Francia para el periódo 1958–1973, en este artículo se intenta someter a prueba, (a) si los balances de dinero real tienen una productividad similar a la de insumos fisicos y, (b) si la introducci?n de dinero en la función de producción lleva a una inestabilidad en las relaciones de producción debido a una variedad de cambios estructurales. Los autores presentan una serie temporal del producto marginal del dinero. Usando una técnica de paràmetros variables en el tiempo también descubren que la introducción del dinero en la función de producción agregada no imparte inestabilidad en las relaciones de producción.

     

Ethnic groups and the Heckscher-Ohlin-Samuelson trade model

Summary In this paper, we report a mode of the Harris-Todaro variety in which the labor force is composed of distinct and easily identifiable ethnic groups and in which capital is intersectorally mobile. We extend the central theorems of Heckscher-Ohlin-Samuelson trade theory to our model and also relate our results to other work.This work was conceived over several visits to The Pakistan Institute of Development Economics and finished at Berkeley where it was first presented at Professor Bardhan's Workshop in Development Economics. I am grateful to Professor Bardhan and to Director Naqvi and other Officers of the Institute for their hospitality and interest. I am also grateful to Naeem Siddiqui and Ray Reizman for several useful conversations; to S. Broca for many provocative comments on the HOS trade model; and, in particular, to one of three anonymous referees for her/his careful reading and detailed comments.