Abstract
The process of global economic integration has sharply altered the context in which most governments are thinking about policies for economic development. The world economy and the 'dictates' of international economic integration loom much larger than ever before. Indeed, in many 'emerging' economies traditional developmental concerns relating to industrialization and poverty have been crowded out by the pursuit of 'international competitiveness'. Openness to the world economy can be a source of many economic benefits. The importantion of investment and intermediate goods that may not be available domestically at comparable cost, the transfer of ideas and technology from more developed nations, and access to foreign savings can help poor nations circumvent some of the traditional obstacles to rapid growth. But these are only potential benefits, to be realized in full only when the complementary policies and institutions are in place domestically. The claims made by the boosters of international economic integration are frequently inflated or downright false. Countries that have done well in the postwar period are those that have been able to formulate a domestic investment strategy to kick-start growth and those that have had the appropriate institutions to handle adverse external shocks, not those that have relied on reduced barriers to trade and capital flows. The evidence from the experience of the last two decades is quite clear: the countries that have grown most rapidly since the mid-1970s are those that have invested a high share of GDP and maintained macroeconomic stability. The relationship between growth rates and indicators of openness - levels of tariff and non-tariff barriers or controls on capital flows - is weak at best. Policymakers therefore have to focus on the fundamentals of economic growth - investment, macroeconomic stability, human resources, and good governance - and not let international economic integration dominate their thinking on development.
... They also point to a trend decline in African North-South trade over the past 25 years in marked contrast to the trend increase in Latin America and the broadly stable pattern in Asia. Rodrik [6] shows that African trade is in line with country size, income, and average distance from the world. ...
... In 0, column (1) includes DOCEXPit (DOCEXPjt) and COSTEXPit (COSTEXPjt) from DOING BUSINESS. Columns (2) and (3) include the global International LPI index, LPIit (LPIjt), together with penetration rates of broadband in country i (j) at year t, BROADBANDit (BROADBANDjt) or of mobile phones, MOBILEit (MOBILEjt) and DOING BUSINESS variables 6 . ...
... The coefficient of the variable measuring the number of documents to import at year t, DOCIMPjt is non-significantly different from 0. We interpret this result as resulting from a low cost implied by filling in this document. 6 In our regressions, we do not include together BROADBANDit (BROADBANDjt) and MOBILEit (MOBILEjt) since they are highly correlated. ...
This paper studies the determinants of the low participation of African countries to international trade. We point out the under-trading status of Africa, then we estimate a gravity equation in order to identify the determinants of trade in general. As we characterize the level of these explanatory variables in Africa as compared to the rest of the world, we identify the main variables behind the low participation of Africa to trade in general. Usual gravity factors play an important role, but we show that non-tariff measures and the quality of infrastructure and institutions are important. Import duties does not significantly impede African exports. We test the impact on African countries’ exports of a counterfactual scenario where infrastructure and institution variables in African countries are changed to the world average and conclude that the most important leverage effect to be expected from investment in infrastructure would be from mobile cellular telephone subscriptions. If we consider only countries where exports are positively affected, this counterfactual exercise implies a change by 31.0% of national exports on average by African country. While this result is interesting it has to be considered with caution since the exact form of the relation between trade and mobile cellular telephone subscriptions is largely unknown.
... The term 'globalization' has been described differently; Rodrick (1999) viewed globalization as a whirlwind of technological and liberalized trade and investment that brings huge gains in communications and efficiency and effecting huge shifts in wealth and production. In addition, Clark (2000) opined that globalization is the process of creating networks of connections among actors at multi-continental distances mediated through a variety of flows, including people, information and ideas, capital and goods. ...
... It is generally believed that the term 'globalization' implies greater interdependence and integration among regions and countries which have overwhelming influence on international trade, international financial system, cultural values, communications, social indicators and economic growth. Thus, the theory of globalization originated from global mechanisms of international integration spurred by the new technology and its increasing flexibility to connect people around the world, making the world a global village (see Rodrick, 1999;Reyes, 2001;Clark, 2000). ...
The short run and long run relationship between channels of globalization and economic growth are examined in Nigeria using multi-dimensional econometric models. The unit root suggests that some of the variables are stationary while others are not. Moreover, causality test shows mix outcome with few cases of bi-directional causation. Also, co-integration result reveals the existence of long run relationship between the variables of the model with six co-integrating equations. The paper argues that channels of globalization affect economic growth more positively. Consequently, it recommends the pursuance of policy aiming at reducing external reserves, ensuring foreign exchange rate stability among others.
... Il existe donc un consensus relatif entre libéralisation commerciale et protectionnisme qui consiste à dire que la libéralisation commerciale est importante, mais pas toujours prioritaire (Rodrik, 1999). Elle doit s ' intégrer dans une stratégie de développement et de lutte contre la pauvreté. ...
Cet article évalue l ' impact de la libéralisation des marchés au Cameroun sur la transmission des prix entre le marché international du cacao et le marché du cacao au Cameroun. Ce papier utilise des modèles de cointégration et de correction d ' erreurs qui sont appliqués aux séries des prix annuels du cacao collectés sur le marché international du cacao et sur le marché du cacao au Cameroun pour la période 1961-2015. Sur plus de 50 années, les résultats montrent qu ' il y a transmission du prix du marché international du cacao au marché du cacao au Cameroun. En outre, la libéralisation n ' a pas sensiblement amélioré l ' ampleur de l ' intégration des marchés du cacao à long terme et à court terme. La rapidité de l ' ajustement des prix est relativement faible pour la plupart des marchés. Afin d ' améliorer l ' efficacité du marché, le gouvernement pourrait améliorer le système d ' information sur le marché et les moyens de transport dans les zones de production de cacao.
... This article offers a comprehensive analysis of the burgeoning trade relationship between Ethiopia and China through the lens of multiple theoretical perspectives: liberalism, realism, interdependence theory, constructivism, and institutionalism (Keohane et al., 2000;Rodrik, D., 1999). The deepening economic ties prompt scholarly inquiry into the motivations and implications of this relationship. ...
This article investigates the intricate relationship between bilateral trade and economic diplomacy, focusing specifically on the case of Ethiopia and China. Through a qualitative approach integrating interviews, focus group discussions, and thematic analysis, the study delves into the evolving dynamics of their multifaceted partnership. It examines various dimensions of economic relations, including trade agreements, infrastructure projects, and cultural exchanges, while addressing the significance of economic diplomacy in shaping international economic policies and advancing mutual interests. Drawing on insights from scholars and historical context, the research explores specific research questions pertaining to trade policies, tariffs, trade imbalances, quality and type of traded goods, trade-related disputes, and diplomatic negotiations. Findings reveal the transformative power of economic diplomacy, evidenced by the historical trend of bilateral trade volume and the influence of trade policies, tariffs, and agreements on economic diplomacy outcomes. Trade imbalances and trade diversification emerge as critical factors shaping economic diplomacy effectiveness, highlighting the importance of strategic policy alignment and diplomatic negotiations. Theoretical perspectives including liberalism, realism, interdependence theory, constructivism, and institutionalism provide a comprehensive framework for understanding the evolving Ethiopia-China economic relationship. The study underscores the pivotal role of diplomatic negotiations in navigating trade dynamics and fostering resilient economic partnerships. Recommendations offered in the study provide strategic pathways for policymakers to enhance economic relations between Ethiopia and China in the global context, emphasizing the need for strategic engagement in trade negotiations, balancing trade deficit, promoting investment and industrial development, strengthening regulatory and legal frameworks, fostering cultural and academic exchanges, and enhancing infrastructure and connectivity. Moreover, suggestions for future studies outline avenues for further research to deepen understanding of this complex relationship, encompassing longitudinal analysis, comparative studies, sector-specific investigations, stakeholder perspectives, environmental and social dimensions, policy evaluation, and cultural and societal impacts. Addressing these aspects will contribute to a more comprehensive understanding of the impact of bilateral trade on economic diplomacy between Ethiopia and China.
... "The intuition that we offer is that poor countries, lacking other inputs such is infrastructure, use physical capital as a substitute for the scarcity of those missing inputs." At this moment it seems useful to get an insight into the critics of the neoclassical economic paradigm and the theory of comparative advantage provided by Stiglitz and Charlton (2005), Horvat (1995), Rodrik (1999), Panic (2003, Pitelis (2000), Adelman (2001). It is not a surprise that Adelman (2001) introduced the term "KISS" ("keep it simple, stupid") in her "Fallacies in Development Theory and their Implications for Policy". ...
The dialectic of globalization suggests that a "territorial" state is going to be replaced by a "market" state. A "market" state is a state dominated by big transnational corporations (TNC) and big transnational banks and presumably demands some sort of world government. Such a drastic but evolutionary change should be followed by new economic knowledge. Cutting-edge technology in the possession of TNCs does not allow the renewal of national economic policies whether those contain protectionism or a Keynesian approach. Economics, as it can be found in standard textbooks, is based on the principle of diminishing returns and deals with economic policies of "territorial" state. In this context, the entire field of microeconomics along with macroeconomics begs to be reconsidered from the point of view of increasing returns and the global economy. The World has entered into economic globalization without an appropriate economic theory. Economic science has lost itself in the labyrinth of globalization.
... For the insiders, however, membership comes with privileges that provide opportunities for rent generation. Studies of informal institutions -which are notoriously difficult to quantify -point to the absence or inefficiency of institutions as a primary force inhibiting economic development (for example Rodrik, 1999;Rodrik et al., 2004;Asiedu, 2006). ...
... Uncertainty and instability are direct consequences of globalization, which have a first-hand impact on the secure development of countries, communities and individuals (Rodrik, 1999;Stiglitz, 2009). As a result, the level of vulnerability to economic events, in particular economic crises, is contingent upon the economic insecurity of countries, groups and individuals (Scholte, 2000). ...
The article studies the issue of secure development of Ukraine, with a focus on risks and their assessment within the country’s economic security framework. The author argues that a comprehensive assessment of the country’s state of security cannot be performed without taking into consideration, measuring and continuously monitoring risks as an integral component of socio-economic development of countries in the modern conditions. The author develops a toolkit for quantitative measurement of risks, which determine the country’s vulnerability and decrease its resilience in a volatile security environment. The proposed risk assessment algorithm is applied in practice to examine the economic dimensions of risk and to provide a composite estimate of the level of economic risk. Research findings prove that the concept of secure development of countries should be based on the examination, systematization, assessment, and continuous monitoring of risks in order to ensure the country’s utmost adaptability to conditions caused by the emerging threats and risks.
... This was also a core to the conceptual foundations for development theory and practice during the 1980 and 1990s. This happened at a time when several studies demonstrated the empirical evidence of market and policy failures began to perturb the intellectual foundations of neoliberal scholars (Aiginger & Rodrik, 2020;Easterly, 2001;Rodrik, 1997Rodrik, , 1999Rodrik, , 2015Stiglitz, 1998). The key concern was that newly industrialised economies of East and Southeast Asia, which had witnessed transformational growth rates and poverty reduction a decade ago, had effectively overlooked these policy prescriptions (Wade, 1990). ...
Global value chain (GVC)‐led development discourse has gained considerable traction in the international development policy debate. Multilateral institutions and donor agencies shape value chain discourse and practice. Through the scholarly literature, this study critically reviews the conceptual underpinnings of value chain theory and its discourse. The study reviews the thematic programmatic application of the US Agency for International Development (USAID) and analyses the application of value chain from a critical social theory perspective in Kenya. Findings demonstrate that the application of value chain theory to Kenya's development practice is unclear with regard to crucial elements of GVC configuration such as the state's role in facilitating development strategies, asymmetrical power relations within value chains and world historical processes affecting upgrading trajectories. This aspect is evident in the value chain‐led development interventions of the USAID in Kenya and supports neoliberal development agenda that caters to the business interests of multinational corporations.
... The theory also suggests that such liberalisation will generally increase the welfare level of the economy. Thus, as we have noted above, the price effects of the reduction of tariffs may not be very significant for the developed countries as they have already lowered their tariff rates substantially before the UR (Rodrik, 1999) and moreover until the other obstacles to trade-MFA and anti-dumping measures-are removed, the market will be insulated from such price effects. Thus, Rodrik argues that increased openness in these countries affects the elasticity of (labour demand in his case) demand due to increased competition from the cheap labour-intensive products of the developing countries. ...
The Uruguay Round (UR) of multilateral trade negotiations had led to a substantial improvement in market access for manufacturing in global trade mainly due to the reductions in tariffs barriers. By ensuring the Most Favoured Nation (MFN) treatment, the WTO has created a non-discriminatory trading regime. As a consequence of such facilitation of market access, Indian manufacturing sector may presumably have succeeded in exploiting the advantages of greater degree of openness for increasing its manufacturing exports. This chapter attempts to evaluate the changes that may have taken place in this direction. The chapter provides a brief overview of the post-UR market access situations in both the developed and the developing economies; discusses India’s role in the WTO policy negotiations for manufacturing market access and also how the country had responded to its commitments in the implementation of the reform measures. It also attempts to analyze the effects of the increased market access for Indian manufacturing under the assumptions of competitive market framework and
constant returns to scale; and then by incorporating monopolistic market conditions and increasing returns to scale, intends to find out if the conclusions based on competition differ greatly in presence of market imperfections and increasing returns to scale.
... IFDI provides a platform to integrate a host country's economy with the global economy and to reap spillover benefits to improve a host country's economic growth and development. According to Rodrik (1999), ''Today's policy literature is filled with extravagant claims about positive spillovers from FDI, [but] the hard evidence is sobering.'' This, in part, depends on the nature of investment, but also on host government policy for obtaining development effect. ...
Purpose
Given the surge in foreign direct investment (FDI) in emerging economies (EEs) during the past four decades, inward FDI (IFDI) has spawned a rich, scholarly conversation on the topic. This paper aims to review the literature regarding EE IFDI determinants and the impact of IFDI on those economies. It also aims to provide some future research directions.
Design/methodology/approach
A systematic review with thematic analysis of 372 articles on the topic, published between 1991 and 2021, is undertaken. In addition to using the relevant keywords, the snowballing approach was used to manually track the literature.
Findings
This review highlights EE IFDI determinants such as institutional quality, corruption and intellectual property rights, regional trade agreements and distances, formal and informal institutions and their interactions, national and subnational diversity and policy expectations. Further, IFDI impacts EEs both at macro- and micro-levels. This review also indicates a substantial increase in research during the period 2000 to 2010 and a decline thereafter; it also indicates Africa and Latin America being under-researched, with a focus on Africa recently increasing.
Research limitations/implications
Rich research opportunities exist in examining the mechanisms (mediators) and conditions (moderators) that influence relationships between the antecedents of IFDI and their outcomes. Further opportunities exist in examining the role of the context and in undertaking a multilevel analysis.
Originality/value
This review provides an understanding of what influences multinational enterprises’ FDI to EEs and how it impacts those economies. It also raises potential future research questions. It provides a holistic understanding of the chosen scope and domain.
... Cependant, ( Les institutions et la qualité des institutions restent au coeur des politiques d'attractivité. En effet, selon les travaux de Rodrik [1999Rodrik [ , 2004, la croissance des revenus dans une économie est directement corrélée à la capacité des institutions à instaurer un Etat de droit, à protéger le droit de propriété, à réduire la corruption, à réglementer de manière transparente et efficace les marchés et à assurer la stabilité politique. Le résultat mitigé est dû aux problèmes d'obtention des procurations fiables pour les phénomènes qualitatifs, tels que l'instabilité politique (Korbin, 1981;Lim, 2001 10 . ...
Performance des télécommunications, qualité institutionnelle et IDE en Afrique du Nord : cas du Maroc et la Tunisie Auteurs : Bouras H., Sossi Alaoui F.Z., Fekih B. et Machrafi M. (Projet : La performance du secteur des télécommunications et son impact sur les échanges des biens et sur les IDE avec la faculté des sciences économiques et de gestion de Nabeul (Tunisie) 2011-2013 financé par le Comité Mixte Permanant Maroco-Tunisien pour la Recherche Scientifique et la Technologie n° 12/MT/30.) Résumé : Cet article chercher à détecter et analyser l'interaction des facteurs d'attractivité des IDE et le rôle des TIC, précisément des télécommunications, comme étant un facteur déterminant dans l'augmentation des flux d'IDE. L'approche théorique adoptée, accorde un intérêt particulier à la théorie de l'économie de connaissance et à la théorie de la Nouvelle Economie Institutionnelle, et ce afin de détecter les facteurs d'attractivités des IDE et les mécanismes via les quelles les TIC attirerons plus les investisseurs étrangers. La méthode utilisée est une méthode d'estimation MCO. L'objectif est d'établir une étude comparative entre la Tunisie et le Maroc en matière d'attractivité des IDE. Cette idée a fait l'objet de la partie économétrique de ce travail. Notre investigation a relevé que la dimension de la qualité institutionnelle attrayante pour les IDE est la gouvernance économique pour le Maroc détectée par la qualité de réglementation, alors que pour la Tunisie il s'agit du control de corruption. Les résultats trouvés appuient l'hypothèse selon laquelle les meilleurs équipements d'infrastructure et meilleure qualité institutionnelle ont une incidence positive sur les flux d'IDE, contrairement à la littérature économique, la taille du marché et les efforts déployés dans l'amélioration de capital humain n'a aucun impact significatif pour le cas du Maroc. La différence est néanmoins très claire entre le Maroc et la Tunisie, marquée par un effet significatif et positif de nombre d'utilisateurs d'internet sur l'attractivité des IDE. L'efficacité de l'action publique, la stabilité politique et les capacités revendicatives et d'expressions ont un impact positif et indirect sur l'attractivité des IDE pour le Maroc. De même, on observe que la qualité institutionnelle affecte positivement les IDE par le biais de la performance des télécommunications pour le cas du Maroc, alors que la qualité institutionnelle affecte positivement les IDE par le biais de capital humain pour le cas de la Tunisie. Introduction :
... That said, it must be noted that immigration does not always result in a better life (e.g., Borjas, 2003;Haddad & Balz, 2006;Rodrik, 1999). Immigrants are often exposed to hostile and discriminatory behaviors that negatively affect physical and psychological well-being (e.g., Bakhtiari, 2020;Berry & Hou, 2017;Gee 2002;Goosby et al., 2018;Pascoe & Richman, 2009;Samari et al., 2018). ...
Supported by the Intergroup Threat Theory (ITT), this study analyzes the effect of multicultural ideology on attitudes towards immigrants mediated by realistic, symbolic, and zero-sum threats. With a sample of Portuguese participants ( N = 404)), polynomial regression analysis with response surface methodology was used to test the effects of multicultural attitude (MA) and perceived intergroup threat (PIT) on attitudes towards immigrants (ATI). This study also tested a model in which positive MA leads to a lower PIT, and consequently to more favorable ATI. Four hypotheses were proposed; all of which were confirmed. The results further showed that the direction of discrepancy between MA and PIT can provide a more comprehensive understanding of the complex role of multicultural ideology in predicting ATI. Findings, limitations, and directions for future research are discussed.
... En la literatura no neoclásica, el punto de partida es que el crecimiento económico requiere de inversión, y si esta inversión tiene componente importado, el ahorro doméstico puede no ser suficiente para garantizar su financiamiento. Desde este punto de vista, como lo hacen notar Cardoso y Fishlow (1989), las exportaciones no sólo contribuyen al crecimiento económico a través de la elevación de la productividad total de los factores, en palabras de Rodrik (1999) afirma que éstas contribuyen al crecimiento de los países subdesarrollados porque permiten importar bienes de capital y bienes intermedios, necesarios para el crecimiento económico. De esta manera, las exportaciones son una fuente de ingreso para comprar importaciones. ...
RESUMENEl documento estudia el problema de indefinición de la demanda de turismo receptivo, así mismo no existe evidencia empírica acerca del impacto que genera un mayor arribo de turistas sobre el crecimiento económico de la región de Puno y las variables que lo determinan; el objetivo es determinar y analizar la demanda de turismo receptivo y el impacto que este genera sobre el crecimiento de la región de Puno; A partir de un modelo de estimación de datos de panel que agrupa a países de Europa, Norteamérica y Sudamérica la demanda internacional de turismo receptivo para países desarrollados Europa y Norteamérica catalogan la actividad turística como una necesidad, países de Sudamérica cataloga al turismo como un bien de lujo; el precio de los paquetes turísticos no es relevante para países desarrollados y por el contrario si lo es para países subdesarrollados. Un mayor flujo de turistas proveniente de países de Europa y Norteamérica genera mayor impacto en el crecimiento regional y en menor magnitud afecta el arribo de turistas provenientes de Sudamérica, mayor formación bruta de capital fijo e incremento en el tipo de cambio afecta de manera positiva al crecimiento de la región. Palabras clave: datos panel, estimaciones, políticas, proyecciones y turismo. ABSTRACT The document studies the problem of lack of definition of the demand for receptive tourism, likewise there is no empirical evidence about the impact generated by a greater arrival of tourists on the economic growth of the Puno region and the variables that determine it; the objective is to determine and analyze the demand for receptive tourism and the impact it generates on the growth of the Puno region; Based on a panel data estimation model that brings together countries in Europe, North America and South America, the international demand for receptive tourism for developed countries Europe and North America catalog tourism as a necessity, countries in South America classify tourism as a good deluxe; the price of the tourist packages is not relevant for developed countries and on the contrary if it is for underdeveloped countries. A greater flow of tourists from countries in Europe and North America generates greater impact on regional growth and to a lesser extent affects the arrival of tourists from South America, greater gross formation of fixed capital and an increase in the exchange rate affects positively the growth of the region. Keywords: data panel, estimates, policies, projections and touris.
... Jak się już nie raz zdarzało, twarde dowody są otrzeźwiające. Systematyczne studia na poziomie zakładów takich krajów jak Maroko i Wenezuela nie wykazują pozytywnych efektów" (Rodrik, 1999). W pracy wydanej kilka lat później Rodrik nieco zmodyfikował ten wniosek, stwierdzając, że "staranne badania przyniosły też niewiele systematycznych dowodów na to, by bezpośrednie inwestycje zagraniczne dawały technologiczne i inne efekty zewnętrzne, a niektóre ujawniły nawet negatywne efekty spillover" (Rodrik, 2011: 172). ...
Summary
Every year, the publication of new data on FDI inflows by international organizations or national central banks is followed by media reports, equating host countries’ FDI performance with the size of inflows, creating the impression that the objective of FDI policy is to attract ever growing investments. The author argues that the objective is to achieve and increase benefits and to reduce or avoid FDI costs.
Benefits [and costs, considered in detail in the sequel to this book] are central to policy analysis. Foreign affiliates of MNEs exert impacts – positive and negative – as domestic enterprises do, on almost all economic and social aspects of host countries. Key benefits and costs are associated with unique characteristics of MNEs, distinct from domestic enterprises. They have been formulated in early FDI/MNE theories and confirmed by empirical studies. The modification of theories resulting from globalization has not significantly altered these characteristics and host country effects. FDI is a package of resources and attributes transferred by MNE parents to their foreign affiliates, useful for economic development. Transfers give rise to high productivity and competitiveness of affiliates, which exert stronger and different impacts on domestic enterprises than the latter do on each other. Foreign affiliates can stimulate host countries’ exports, but they can also leave countries for other locations. FDI is the source of foreign savings for host countries, but MNEs can alter financial benefits from FDI to their advantage through transfer pricing.
The said benefits are not automatic. Higher than in domestic firms’ productivity and wages in foreign affiliates are common in all kinds of host countries. They result from the transfer of superior assets and practices from parents to affiliates: technology, organization, management, access to international markets or marketing, or, in general, of business and technological knowledge. However, positive externalities – transfer of knowledge from foreign affiliates to domestic enterprises – do not always occur, because they depend on the absorption capacity of the latter. In its absence, negative externalities will prevail. In globalization, FDI has become the largest stream of foreign capital for emerging economies, crowding in domestic investment, but at times crowding it out.
After World War II, inward FDI policy of countries, especially developing ones, has evolved from confrontational in nature to FDI liberalization, competition for better types of FDI and improvements of investment climate. FDI promotion, including incentives and activities of investment promotion agencies, has become a common and important instrument of attracting FDI and benefitting from it, although its effectiveness differs among host countries. Inward FDI policy interacts with economic determinants of FDI inflows, supplementing them and enhancing countries’ FDI potential. Improvements of investment climate have been found, ceteris paribus, to increase FDI inflows.
Investment incentives, that is, subsidies to foreign affiliates, are a key instrument to benefit from FDI. They are costs, host countries are ready to incur, in exchange for expected gains such as new jobs, advanced economic activities, exports, R&D or linkages with domestic enterprises. General theory postulates that a subsidy should not exceed expected benefits. Adapted to FDI, it suggests that an FDI project deserves support, if it delivers positive externalities. However, the practical application of this recommendation gives rise to controversies. Over time, the use of FDI incentives in the world has evolved, and it differs among countries as regards its objectives, types, scope and scale. Incentives are typically an integral part of special economic zones, popular in many countries. Incentive competition has intensified, especially for large greenfield or export-oriented projects, resulting sometimes in unreasonably large and doubtful subsidies. The case analysis in this book indicates that, eventually, even a very large support may prove to be valuable for a host country. The European Union is the only organization in the world limiting the size of investment incentives. Empirical studies have not reached consensus on the effectiveness of incentives. But the absence of incentives for export oriented FDI projects typically deprives a host country of the chance to be placed on the short list of investment locations.
Poland has attracted large FDI inflows, especially after the accession to the European Union, becoming the largest host country in the Central and Eastern Europe. Over time, foreign enterprises have emerged as an ever increasing and important part of the Polish economy, contributing to economic development, particularly in manufacturing and modern business services, increasing productivity and wages, stimulating innovation and exports, and improving the country’s economic structure. These contributions can continue if Poland meets challenges associated with competition for FDI, including low competitiveness of its FDI promotion system, an average investment climate and low technological readiness, as well as an ambivalent and, at times averse, attitude of the Government to FDI.
For each issue lessons for Poland are preceded by theoretical considerations and comprehensive analysis of worldwide trends and situations. As a result, most of the book is on world’s FDI policy rather than on that of Poland.
... However, not all empirical work in this area confirms these effects (Agénor, 2003). One can even wonder with Rodrik (1999) the usefulness of the policies put in place by host countries to attract these FDI. For some authors these effects are only effective when certain conditions are fulfilled (level of economic development for Blomstrom et al. 1994, level of human capital for Borensztein et al. 1998;Bouzahzah and Jellal, 2012, the depth of the financial market for Alfaro et al. 2003, etc.). ...
This article aims at investigating whether the FDI inflows affect CO2 emissions for a set of 40 African countries. To be specific, it seeks to perceive, to what extent the quality of institutions plays a role in the empirical validity of the famous pollution haven hypothesis (PHH). We apply Panel ARDL and the three estimators; Pooled Mean Group (PMG), Mean Group (MG) and Dynamic Fixed Effect estimator (DFE) but also Granger causality and Dumitrescu and Hurlin causality for annual data from 1988 to 2016. Long run results indicate the link between FDI, and pollution is relatively complex. If in general, the PHH does not seem to be validated, the result represents quite the opposite when we consider the institutional quality in the diverse African countries. Indeed, our results show the quality of institutions determines the nature of FDI received by African countries. In countries with a high level of corruption, inward FDI significantly reduces CO2 emissions, while in countries with low institutional quality, inward FDI increases CO2 emissions. Some policy recommendations have been formulated to support African countries reduce carbon emissions and support economic development. In particular, institutional reform would enable African countries to reconcile economic development, particularly through the FDI, with environmental quality.
... Huntington y Harrison (2000), por ejemplo, demuestran que, estando en condiciones similares en la década de 1960, Corea del Sur y Ghana estaban en situaciones completamente distintas en la década de 1990. Rodrik (1999Rodrik ( y 2000, a su vez, caracterizó que el desarrollo económico no puede quedar a merced del libre mercado conducido por la "mano invisible" de Smith, o por la idea de equilibrio general de Walras. Para él, es necesario que los mercados sean apoyados por sólidas instituciones públicas. ...
Resumen: El presente artículo analiza de qué manera conciben el desarrollo, el Estado y la democracia tres instituciones relevantes en el panorama sociopolítico brasileño contemporáneo: a) Fundación Fernando Henrique Cardoso; b) Centro Internacional Celso Furtado; c) Instituto Millenium. Se destacan las aproximaciones, distancias e incluso oposiciones entre los posicionamientos de las instituciones mencionadas, así como de los intelectuales a ellas ligados. ¿Qué quieren decir con desarrollo, Estado y democracia? ¿Qué objetivos se proponen al respecto? ¿Qué piensan acerca de cómo alcanzarlos, mantenerlos o extenderlos? La propuesta tiene como objetivo establecer un diálogo entre dos áreas de conocimiento, a saber: la sociología del desarrollo y los estudios sobre el pensamiento social brasileño y, a través de ello, establecer una interpretación sociológica de cómo piensan e influyen estas instituciones a través de las interpretaciones que producen. Palabras clave: Pensamiento sociopolítico y económico, Estrategias para el desarrollo, think tanks, Estado, Democracia. Abstract: Our paper analyses how development, the state and democracy are conceived by three relevant institutions in the contemporary Brazilian socio-political landscape: a) the Fernando Henrique Cardoso Foundation; b) the Celso Furtado International Centre; c) the Millenium Institute. We highlight the approximations, distances and even oppositions between the positions of the aforementioned institutions, as well as those of the intellectuals linked to them. What do they mean by development, the state and democracy? What are their objectives? What do they think about how to achieve, maintain or extend them? Our proposal aims to establish a dialogue between two areas of knowledge, namely, sociology of development and Brazilian social thought studies, and, through this, to put forward a sociological interpretation of how these institutions think and influence through the interpretations they produce.
... Succinctly put, industrial development in Nigeria has been a major concern for scholars in one hand, whereas multiplier effects of external factors on the development of manufacturing sector in Nigeria has long remained a subject of debate in the literature on the other hand. Due to the various events that have unfolded in the global market, the earlier writers have conceptualized globalization as unavoidable curse and fortune to developing countries (Rodrik, 1999;David, 1999;Salimono, 1999;Awake, 2002;Garry, 1998;Gondwe, 2001;Dollar, 2001). But further efforts to unravel the linkage between globalization and industrial development in Nigeria has largely received little or no attention in the literature, especially in the most recent times. ...
The question whether globalization and its corresponding impacts carry a blessing or curse in developing countries has been a controversial issue among both the scholars and the policymakers, against this background this study provided an empirical answer to the question whether globalisation is a curse or cure to industrial development in Nigeria between 1990 and 2019 within the framework of the Fully Modified Ordinary Least Squares (FMOLS) and Granger causality test. Consequently, the following principal findings emerged in this study. Firstly, both FDI inflows and trade openness which depict economic globalization had a negative relationship with industrial development respectively. Though, trade openness was significant while FDI inflows showed otherwise. In the same vein, a unidirectional causality ran from manufacturing value added to FDI inflows. However, no feedback relationship existed between trade openness and manufacturing value added. Therefore, this study submits that economic globalization is a curse to industrial development in Nigeria because the wave of economic globalization contributed a significant reduction in manufacturing value added in Nigeria in the last three decades. From these findings, the current wave of economic globalization could be a cure to industrial development in Nigeria, if only the policymakers in the country embark on policies that would drive the largest proportion of the inflows of FDI in the direction of manufacturing sub sector in the country. Similarly, all hands must be on deck by all the relevant stakeholders to ensure that manufactured products in Nigeria possesses value added quality to facilitate their competitiveness in the global market.
... Finally, it increases economic growth through mitigating violence since violence destroys infrastructure, damages private property, destroys life direction, diverts resource from the provision of public goods and productive private activity into violence. Empirical research conducted by Gani (2011) andDjankov et al. (2010), as well as institutional theory explained by Acemoglu and Robinson (2008), Rodrik (1999), and North (1990) also agrees with this finding. ...
The study examines the contribution of institutions explained by the aggregated index for the six governance clusters measured by WGI and the individual level of each indicator on the stochastic growth behavior of SSA countries using data from forty-two SSA countries over a period of 1996 to 2014. employed Arellano-Bond (1991) and Arellano-Bover (1995) dynamic panel generalized method of moments (GMM) technique of estimation. The estimated result suggested that variables such as foreign aid, public investment, consumption, imported capital good, inflation, control of corruption, rule of law, voice and accountability, political stability, government effectiveness, regulatory quality, and institution are significant and positively contribute to stochastic growth performance in the region across each model. On the other hand, outward trade policy negatively contributes to SSA's Stochastic growth behavior. Moreover, FDI has no significant contribution in the study period. A major policy implication arising from the results is that the advancement of institutions and individual levels of good governance is fundamental to the realization of sustained economic growth in SSA.
... This international economic transformation has boosted the globalization phenomenon. Indeed, globalization, driven by trade, has increased the competitiveness of external markets, information and technology, capital, labor mobility, world production, and, hence, global economic welfare (Rodrik, 1999). ...
In the present work, we seek to empirically assess the effects of trade openness on the Moroccan tax structure. The estimations are covering the period between 1985 and 2019. The results of the modeling using the Two-Stage Least Squares (2SLS) method confirm that the reduction of customs duties has a negative impact on foreign trade revenues, and consequently, on total tax revenues. Also, the reduction in customs duties reduces domestic revenues, notably, value-added tax, and corporate tax. Additionally, it has been shown that not only do the other channels of transmission of trade openness, namely: the liberalization of imports, the promotion of exports, and the variability of the exchange rate, lead to a decrease in trade revenue, but they also bring about an increase in domestic revenue. Finally, the results of the stylized facts and economic modeling allowed us to deduce that the measures taken by Moroccan economic decision-makers to stimulate foreign trade have led to a loss of trade taxes and fiscal injustice.
... The importance of international trade as a catalyst for economic growth and national development is widely recognised today. However, as Rodrik (1999) states, openness by itself is not a reliable mechanism to generate sustained economic growth, it will likely exert pressures that widen income and wealth disparities within countries, and openness will leave countries vulnerable to external shocks that can trigger domestic conflicts and political upheavals (Rodrik 1999: 13-14). Furthermore, in recent years it has become increasingly clear that many developing and least developed countries face significant supply-side constraints that prevent them from participating effectively in the international trading system (Grainger and McLinden 2013: 877). ...
This book assembles some of the most exciting contributions to the field of comparative capitalism studies. The book is a must-read for all scholars that strive to be up-to date in the debate on the developmental state.
--Andreas Nolke is Professor of Political Science at the Goethe University, Frankfurt, Germany
This volume extends the earlier “developmental state” literature into the present, and the earlier world-system concept of the semi-periphery into present-day debates about institutions, path dependency, middle-income trap, and authoritarianism. Written from the perspective of the Global East and South, it reads like a breath of fresh air for those of us schooled in the Western narrative of development and modernization.
--Robert H. Wade is Professor of Political Economy and Development at the LSE, UK
The focus of this volume is on the role of the developmental state in a situation in which a series of major crises affects the (semi-) periphery of the global economy. The authors go beyond the established debate on developmental states in East Asia by highlighting a much broader understanding of development and a very different global economic context. They also further the existing debate by covering new country cases. At the same time, they deepen our perspective on developmental states by looking at unusual sectors such as green industrial policy, education and farming.
Gerőcs, Tamás is a Research Fellow at the Centre for Economic and Regional Studies, Institute of World Economics and SUNY Binghamton, United States.
Ricz, Judit is a Research Fellow at the Centre for Economic and Regional Studies, Institute of World Economics and Associate Professor at the Department of World Economy, Corvinus University of Budapest, Hungary.
... The importance of international trade as a catalyst for economic growth and national development is widely recognised today. However, as Rodrik (1999) states, openness by itself is not a reliable mechanism to generate sustained economic growth, it will likely exert pressures that widen income and wealth disparities within countries, and openness will leave countries vulnerable to external shocks that can trigger domestic conflicts and political upheavals (Rodrik 1999: 13-14). Furthermore, in recent years it has become increasingly clear that many developing and least developed countries face significant supply-side constraints that prevent them from participating effectively in the international trading system (Grainger and McLinden 2013: 877). ...
This chapter looks at the origins of the classic developmental states and differentiates between the agency and urgency views explaining the emergence of developmentalist institutions and policies in the twentieth century. By recalling the experiences of the Northeast Asian model-cases it puts special emphasis on the political-economic explanation of Doner et al. (International Organization 59(2): 327–361, 2005), the so-called systemic vulnerability concept, and aims to apply its logic and reinterpret its mechanisms under the new circumstances of the twenty-first century. First it reveals the changes in the external conditions of aspirational developmental states in the first two decades after the Millennium, and highlights the dynamics of contextual changes both in economic and political terms. Then it turns towards the domestic arena and aims to provide a political economy interpretation of the challenges of building developmentalist institutions and strategies in the twenty-first century. The aim is to contribute to a better understanding of the scarcity of catching up success stories and re-open the debate on the origins of developmental states.
This research study intends to explore the impact of Indo-Nepalese trade trends on Nepal's gross domestic product (GDP) by highlighting the India-Nepal trade relationship and trends. Bilateral trade trends refer to the changes in the volume, value, and composition of goods and services exchanged between Nepal and India over time. Economic policies, market demands, and geopolitical relations between countries influence trade trends and GDP impacts. The study uses data from Nepal's National Accounts Section from 1991 to 2020, utilizing ordinary least squares (OLS) regression to estimate growth dependency and determine coefficient elasticity. The finding indicates that Nepal's growing reliance on foreign trade and increased remittances emphasize the need to analyze the impact of imports and exports on the country's economic development. This result has provided an understanding for policymakers in boosting economic growth by directing imports and exports in the right direction.
The absence of the evaluation of local development in academic literature reflects the lack of debate at present, but also the need for analysis of evaluation proposals and models. This article aims to present the results of recent research work in this field, seeking to contribute to the debate around the evaluation of local development. Through exploratory interviews with 20 key informants with links to Animar-Portuguese Association for Local Development as the representative entity of Social Economy in Portugal, its analysis resulted in a "political-administrative space" of evaluation and the local development evaluation, a methodological proposal of an evaluation proposal with 7 dimensions of analysis and 37 indicators. It is concluded that the evaluation of local development based on the proposed model generates a set of possibilities, by contributing to a local diagnosis through the auscultation of the entities of the social economy sector.
Circular Economy is an alternative to the currently dominant linear production and consumption model. It has been embraced by academics and policymakers alike. However, Circular Economy has also been critiqued for framing complex societal challenges as primarily technical problems, hence failing to consider social and environmental justice implications of the transition to Circular Economy. There are no studies that review the burgeoning Circular Economy literature with a view on how social justice aspects are conceptualized differently in the Global North and South. To fill this gap, we conducted a scoping review of the academic literature to map out how social aspects of Circular Economy are discussed in place-based studies with empirical data. First, existing studies are overwhelmingly conceptual in nature and the dataset of place-based research is relatively small – an indication of an undeveloped empirical research field. Furthermore, when social benefits of Circular Economy are discussed, it is often about green growth, poverty alleviation, and formal employment. Alternative notions of social justice, such as inclusion, participation and recognition, seem far less represented in the literature. Most strikingly, we discovered two diverging narratives on how social aspects of Circular Economy are discussed in the Global North and South. These narratives follow preexisting ideas about what ‘development’ entails and suggest different priorities to be tackled – a line of thought that reproduces existing inequalities and deficits of justice. We present alternative ways of discussing the subject.
Growth in the level of imports shows a strong domestic demand and a rising economy, particularly when these imports are productive and useful assets. However, there is a dearth of research carried on the relationship between GDP growth and imports. This research used Toda-Yamamoto Causality to investigate how imports affect Pakistan's economic growth. The years 1972 through 2020 are covered by yearly time series data. The study's findings suggest a long-run equilibrium relationship with bidirectional causality between imports and real GDP growth in Pakistan. Thus, it is proven that increasing imports will spur GDP growth in the long run. Whereas, in the short run true economic growth may result in an increase in the country's import demand. For a growing country like Pakistan, these two findings are very significant given the current scenario.
South Asia has been transitioning to more democratic forms of governance over the last two decades. Traditionally overlooked due to its deficiencies and poverty, the region is now witnessing significant economic and industrial growth. This paper explores the importance of good governance and human rights in South Asia, analyzing the unique challenges faced by these countries in reforming their governance and administrative systems. It also examines the emerging perspective of good governance in South Asia, which differs from Western concepts.
This paper traces the evolution of economic development in the Third World from the end of the Second World War till 1990 to understand how the US foreign economic policy was a crucial factor in shaping developmental strategies. The methodology adopted for this paper involves the use of historical and critical analyses of relevant events and policies during the Cold War period, with a focus on outlining the trajectory of international development linked with American values and interests. The paper begins by examining the nature of the Third World independence movements and the power they expressed following the end of European imperialism. The state-led model of development which the Third World adopted after independence was a direct consequence of the imperial experience. The initial economic boom coupled with a welfare orientation during the 1950s and 60s aided by the US was primarily in response to counter the threat of communist Soviet Union. As a result of the Cold War politics, many governments in the developing world received monetary support from the West as well as autonomy in policymaking. It is argued that the 1970s was a turning point bringing a radical political and economic shift towards neoliberal policies as the global economy faced recession owing to various factors. This change in the US stance impacted the developing nations negatively as many plunged into debt crises allowing the West and the related economic instruments significant bargaining power to impose economic conditions as the Cold War, too, came to an end. The paper concludes by emphasizing that the continuous underdevelopment of developing countries owes to the enduring American influence on international development.
In the paper, we construct a composite indicator to estimate the potential of four Central and Eastern European countries (the Czech Republic, Hungary, Poland and Slovakia) to benefit from productivity spillovers from foreign direct investment (FDI) in the manufacturing sector. Such transfers of technology are one of the main benefits of FDI for the host country, and should also be one of the main determinants of FDI incentives offered to investing multinationals by governments, but they are difficult to assess ex ante. For our composite index, we use six components to proxy the main channels and determinants of these spillovers. We have tried several weighting and aggregation methods, and we consider our results robust. According to the analysis of our results, between 2003 and 2007 all four countries were able to increase their potential to benefit from such spillovers, although there are large differences between them. The Czech Republic clearly has the most potential to benefit from productivity spillovers, while Poland has the least. The relative positions of Hungary and Slovakia depend to some extent on the exact weighting and aggregation method of the individual components of the index, but the differences are not large. These conclusions have important implications both the investment strategies of multinationals and government FDI policies.
Temeljni ekonomski subjekti našega doba su transnacionalne korporacije (TNK) i transnacionalne banke kao lideri i zrcalni odraz procesa globaliza-cije. Temeljno mikroekonomsko načelo njihovog ponašanja jest načelo rastućih prinosa i padajućih troškova! Transnacionalizacija ili globalizacija svjetske ekonomije oblikuje globalno tržište, ali tržište čija je jedna od glavnih značajki imperfektna konkurencija s prevladavajućom oligopolnom tržišnom morfologi-jom. Dok postojeća mikroekonomska teorija pomaže razumijevanju poslovanja transnacionalnih korporacija, makroekonomska teorija globalne ekonomije nije niti na horizontu. Pitamo se je li bilo koja od postavki virtualne neoklasi-ke valjana u ovako nastajućem globalnom svijetu? Ako nije, onda neoklasika u vrijeme globalne ekonomije zavrjeđuje da ide u ropotarnicu povijesti. No, globalna ekonomija nema svoju teorijsku konstrukciju promatrano iz kuta glo-balne ekonomije u cijelosti, tj. iz tzv. makroplana. Što se optimizira u globalnoj ekonomiji? Je li to BDP? Čiji BDP treba optimizirati: globalni ili pojedinih ekonomski nesuverenih država koje su se privatizacijom lišile svojih resursa pa sada nemaju čime upravljati? Što je s pitanjem zaposlenosti? Što je s pitanjem optimalne alokacije resursa na makro-razini ili s pitanjem opće ravnoteže? Jednaka pitanja možemo postaviti i za EU kao potencijalnu federaciju članica. Čini se da smo uhvaćeni u zamku ekonomskog realiteta globalizacije i aplikacije virtualne neoklasike i/ili eventualno njezinih izdanaka (škola) relevantnih za teritorijalnu državu što nas vodi izravno u mega-kapitalizam.
This research paper aims to examine the impact of liberalization on international business by analyzing how economic reforms and trade policy changes have shaped global business dynamics. On the verge of formulating foreign trade plans, India exhibited a surplus of imports over exports. The surge in imports primarily stemmed from accumulated demand during and after the war, a result of diverse controls and limitations. Similar to other emerging economies, India confronts inherent imbalances in its trade equilibrium. Starting from the inaugural economic plan, the revenue generated from India's exports has consistently fallen short of covering the expenses incurred on importing goods. India recognized the negative impact of its protectionist policies on long-term economic performance and began dismantling trade barriers to foster economic development. The paper investigates the effects of liberalization on trade flows, foreign investment, and market competition, highlighting both the benefits and challenges faced by countries in the post-liberalization era.
The article examines the modern global processes that create challenges and threats to the international security environment. Global trends that pose threats to the security systems of national economies are identified and classified. Modern global challenges of a new format (COVID-19 pandemic, digitalisation, etc.) are highlighted. The interrelation between the level of globalisation of Ukraine and the level of its economic security is investigated. The scale of financial globalisation of the Ukrainian economy in the context of the overall level of financial globalisation of the world economy is determined. It is substantiated that during the years of independence, the impact of global environment factors on the Ukrainian economic security has increased, the most powerful of which are the global financial crisis, the COVID-19 pandemic and the full-scale war. A comparative analysis of changes in the main parameters of the economic environment is carried out, the impact of the global financial crisis, pandemic and war on the economic security of Ukraine is determined.
Economic development zone (EDZ) is a spatial policy and experimental strategy for stimulating economic growth. Even though its roots are ancient, it is only in recent decades that EDZ has emerged as a powerful global form. Zoning technologies, as a compromise between liberal and protective regimes, can be seen as the state's intention to cope with the emerging opportunities and pressures of internationalization by redefining its territory, border, and sovereignty. However, the restructuring process incurs social and spatial tensions, since that zoning policy also implies differentiating the treatment of land and people. Situated in changing political‐economic climates, EDZs, on the one hand, extend to cover as far as possible, through networking, the subcontracted fragments of the national territory, and, on the other hand, become part of the assemblage of a globalizing world.
This paper provides a systematic case for free trade as key to growth and development. It points to evidence showing that all countries that have achieved high growth rates have done so in the presence of low or declining barriers to trade. Using cross-country analysis, economists have also amassed considerable evidence not just of positive correlation but also causation flowing from trade to per-capita income or GDP growth. The infant-industry argument, often offered to justify protection in developing countries, fails to stand up to careful logical scrutiny. No similar evidence in favor of import substitution and industrial targeting exists. There are no examples of countries experiencing rapid growth in the presence of high or rising protection. Pro-protection advocates make their case by appealing to the existence of interventions during phases of fast growth in countries such as South Korea, Taiwan, China and India. But they provide no evidence showing that these interventions added to rather than subtract from fast growth. Whatever evidence exists points to the latter possibility.KeywordsFree tradeEconomic developmentBarriers to tradeExport pessimismSelective protection
Although the consensus has changed over time, the present consensus (in particular among those with a neoclassical training) is that openness to international trade and outward-oriented trade strategies are in general beneficial for countries, including developing countries. Nonetheless, the underpinning of that consensus by theory and empirical evidence gives rise to considerably more controversy than might be inferred from the consensus on the net or overall evaluation. In this chapter we seek to review the individual issues and controversies that exist in the theoretical and empirical literatures on the roles of trade and trade policy in economic development.KeywordsTotal Factor ProductivityFree TradeReal Exchange RateTrade PolicyTrade StrategyThese keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.
Globalization is a highly contested and perhaps most hotly debated concept in the world's socioeconomic and political arena. It continues to engender anxiety, instigate debates and controversies, protests and demonstrations that are sometimes violent. The processes of globalization are posing new sets of complex challenges to the politically unstable, debt-ridden, technologically backward and dependent African countries. As a consequence, their individual capacity to function effectively and sustainably in the international market place is becoming increasingly compromised. The paper examined the concept of globalization, its history and challenges for the African Continent. While identifying globalization as one of the recent developments currently shaping the world, it focuses on its socio-cultural, economic and political challenges, its consequences and implications for Africa, particularly in the realm of benefits, requisite input into the policy-making process and the encapsulating assertiveness of the global village. The position of the paper is that, the challenges posed by globalization to Africa outweigh whatever benefits derivable from the process. The paper concludes that strategies on how these negative outcomes could be mitigated or ameliorated for the overall benefit of Africa should necessarily be formulated by African leaders themselves.
This article surveys various models of global governanceGovernance, particularly in terms of externalities, collective action problemsCollective-action problems, and the contextual problemsContextual problems which states face in their mutual interactions. The article argues that these issues are depicted in different ways in market liberalismMarket liberalism, critical approaches, and reformist modelsReformist model. Particular attention is paid to the problem of inequality in global governance and interaction between state and private actors as well as hybrid forms of governanceHybrid forms of governance containing several types of actors. Detailed case studies are carried out on the role of globalizationGlobalization in international programs of poverty reduction and debt reliefDebt relief. Discussions about the role of globalization in improving and worsening regional and global problems need to take into consideration the basis value of such programs.
Traditionally, sovereign states have been defined, in terms of their external and internal dimensions, as mutually exclusive territorial jurisdictionsTerritorial jurisdictions. Economic globalizationGlobalization is associated with the liberalization of the world economy, decreases in transaction costs, the development of communication technologies, and the emergence of transnational social and cultural spaces. These have eroded the divide between national and international systemsInternational system and fostered the dispersal of powerPower in social networks. As a result, it is unrealistic to define state sovereigntySovereignty as a counterpoise to the global system; these phenomena have become mutually embedded. States and their sovereignty are not disappearing – on the contrary, they may be gaining new tasks and resources – but they cannot exercise their agentive powerAgentive power as effectively as before. This means that the internal dimension of state sovereigntySovereignty has been transformed more thoroughly than the external one. This is in part due to the growthGrowth and proliferation of transnational social movements, which have also gained agentive powerAgentive power in national societies – hence the anti-globalizationGlobalization movement, although it is unable to halt the process of economic integrationEconomic integration.
This chapter opens with a discussion of the types of institutions that allow markets to perform adequately. While we can identify in broad terms what these are, there is no unique mapping between markets and the non-market institutions that underpin them. The chapter emphasizes the importance of “local knowledge” and argues that a strategy of institution building must not over-emphasize best-practice “blueprints” at the expense of experimentation. Participatory political systems are the most effective ones for processing and aggregating local knowledge. Democracy is a meta-institution for building good institutions. A range of evidence indicates that participatory democracies enable higher-quality growth.
In order to fully understand the contributing factors of economic development in Hong Kong and Singapore, it is essential to explore their respective histories. This is especially warranted considering that both city-states were British colonies since the early nineteenth century. Founded in 1819 and 1843, respectively, by the British, Hong Kong and Singapore witnessed the introduction of British institutions, governance, and policies for more than a century before WWII. The role that British colonialism played in the development of both countries must be assessed.
This chapter provides a comprehensive background of FDI screening in the EU—from a political, economic, and legislative perspective. The author first identifies the EU and Member States concerns vis-à-vis foreign investors in more detail. He then analyzes FDI from an economic perspective, focusing on the effects of FDI that is at the centre of the EU and Member States concerns: M&A FDI from developing countries with a particular focus on technology- and knowledge-seeking FDI. Further, the author presents the current legislative options for FDI screening in the EU which are shaped by the EU’s Screening Regulation as well as screening grounds that circle around the notions of security and public order. Finally, this chapter defines the central notions of FDI screening based on the EU and Member States concerns vis-à-vis foreign investors: FDI, Foreign investor, and FDI Screening.
This paper assesses the relationship between trade openness and economic growth in Africa by accounting for the heterogeneity of African countries. In addition, the paper contributes to the literature on trade openness and economic growth nexus by applying the instrumental variable panel smooth transition regression, a methodology that accounts for nonlinearity and endogeneity in the relationship between the two variables. The results of the empirical analysis reveal that the investment ratio is a channel through which trade openness affects economic growth in the African continent. In addition, the relationship between trade openness and economic growth varies according to the degree of a country's development in Africa. The study finds a negative relationship between openness and growth in low‐income countries. Conversely, for upper‐income countries, the coefficients of trade indicators are positive and statistically significant. The results indicate that African countries are not homogeneous, especially concerning trade openness and economic growth nexus.
The pervasive nature of globalization and the corresponding socioeconomic impact of multinational corporations on the Nigerian Economy is germane to this paper. Unarguably, however, while it is a possibility that multinationalism and globalism engender trade linkages, enhance information transfer and improve technology, etc; it is also important to stress that the same entrenches inequality, exploitation and eventually implant poverty in their host countries. The study submits that multinationalism has changed the people's consumption patterns from African food to those of the imperialists. The paper concludes with policy statements by way of recommendations to leapfrog Nigeria's developmental agenda devoid of foreign incursion in the socio-economic and political scheme of things.
In the 1950s and 1960s, developing countries raised concerns about the challenges they faced in international trade. In their view, sustainable development could only materialize through increased industrialization. They felt that liberal trade policies would stymie infant industry development and continued dependence on primary commodity exports would result in volatile export earnings and deteriorating terms of trade. The trade strategy that emerged from this thinking had three main strands: (a) industrialization promoted through import substitution behind protective tariff and non-tariff barriers; (b) improved access to developed country markets through the establishment of a system of preferences; (c) commodity agreements aimed at stabilizing and, possibly, increasing earnings from commodity exports. The late 1970s witnessed a rethinking of the trade policies that contribute to sustainable development which had an impact on developing country practices and globalization in the next two decades. This chapter traces developing country trade policies until about 1980 and their participation in the General Agreement on Tariffs and Trade (GATT) and the United Nations Conference on Trade and Development (UNCTAD). The last part of the chapter addresses the problem of incoherence in developed country aid and trade policies toward developing countries.
Sejak zaman berzaman lagi bermula terbentuknya Kerajaan keSultanan Negara Brunei Darussalam, amatlah menitikberatkan kepentingan pendidikan untuk diberikan kepada semua rakyat jelata watan negara tidak kira berlainan kaum, bangsa dan agama. Tuntutan hak pendidikan formal adalah diberikan sama rata kepada lelaki dan perempuan, tidak wujud jurang perbezaan dan keistimewaan yang lebih diberikan kepada mana-mana pihak. Yang wujud pada awal abad pemerintahan Kesultanan Melayu Brunei adalah kepercayaan dan pegangan teguh dan ketat masyarakat pada adat dan agama bahawa perempuan tidak dibenarkan keluar dari rumah kecuali ditemani oleh Muhrim merupakan salah satu faktor utama kurangnya bilangan pelajar perempuan menghadiri pendidikan formal di awal abad ke- 18 Masihi. Kertas kerja ini akan membincangkan bagaimana perkembangan pendidikan formal di Negara Brunei Darussalam terbentuk dan apakah cabaran-cabaran yang dihadapi. Sebelum terbentuknya pendidikan formal, pendidikan yang disalurkan adalah bercorak informal dan non-formal bagi membentuk anak warisan bangsa yang berperikebadian keBruneian dibekali dengan kemahiran-kemahiran asas tradisional yang penting serta meliputi ilmu adat resam Negara Brunei Darussalam. Pendidikan in-formal dilaksanakan di rumah-rumah dan istana semakin giat dilaksanakan terutama sekali setelah Sultan Brunei yang pertama Awang Alak Betatar memeluk agama Islam yang kemudiannya dikenali sebagai Sultan Muhammad Shah. Pendidikan in-formal yang diberikan merupakan alat, wacana atau saluran bagi mengembangkan dan memperkukuhkan syiar dan ilmu agama Islam. Pendidikan informal ini kemudiannya giat dilaksanakan di balai-balai dan masjid-masjid. Pada masa yang sama pendidikan non-formal berjalan secara seiring bagi membentuk syahsiah yang sempurna rakyat bangsa Negara Brunei Darussalam. Bila dan bagaimanakan pendidikan formal mula terbentuk dan berkembang di Negara Brunei Darussalam? Apakah cabaran-cabaran yang dihadapi pada zaman awal penubuhan pendidikan formal pada tahun 1912 dan cabaran-cabaran yang dihadapi seterusnya hingga zaman sekarang , zaman era globalisasi?. Kertas kerja ini menyelusuri latar belakang sejarah perkembangan pendidikan formal di Negara Brunei Darussalam dan membincangkan apakah cabaran-cabaran yang dihadapi dan di akhir kertas kerja akan memberikan cadangan-cadangan bagaimanakah untuk mengatasi masalah-masalah terkini yang wujud pada zaman sekarang. Semoga penulisan kertas kerja ini akan memberikan struktur yang lebih jelas tentang perkembangan pendidikan formal di Negara Brunei Darussalam.
Economic integration in Asia has been advanced over the past decades through international commitments. Interdependent relationship between countries has created opportunities for propagating monetary policy shocks among countries. Particularly, the spillovers of monetary policy from a country which has important role in the global economy like the US to Asian economies. In this paper, we investigate the spillovers from US monetary policy to selected Asian economies by employing the BVAR model. Georgiadis (2016) suggested that the magnitude of spillovers depends on recipient country’s factors such as the extent of economic integration, exchange rate regimes, labour market rigidities, industry structure, and participation in global value chains. Hence, we analyze the difference in magnitude of US monetary policy spillover to Asian economies through categorizing country characteristics. The results of this paper indicate that due to heterogeneities across Asian countries, the magnitude of spillovers on each country is different. In particular, developing countries which adopt pegged regime, more integrated in trade, have stronger responses to shocks from the US monetary policy. Besides, countries open up to international capital flows would be highly vulnerable to external shocks because these countries are still lacking in the infrastructure required, appropriate controls, regulatory apparatus and macroeconomic frameworks.
Given the interconnectedness of the SDGs and of the varying magnitudes in the role of the various actors involved in the design and achievement of the SDGs, it is imperative that policy frameworks avoid designing and implementing a silo-approach. This chapter draws on this interconnectedness to not only highlight the necessity for policy makers and evaluators to assess the unintended consequences of the changes being implemented in one area on another area, but to also assess the impact of power dynamics and influences on the design of the goals, initiatives, measurements, and expected outcomes.
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