Pub Date : 2020-12-10DOI: 10.1177/0974910120974800
M. I. Shah
Regional economic integration is the key to achieving prosperity and stability. However, intra-regional trade in South Asia accounts for not more than 5%–6% of their total trade. This study aims to examine the role played by regional economic integration in determining the economic growth of South Asian countries over the period 1980–2015. Since shocks in one country may affect another country in the region, this is taken into account in the article by employing methodologies that are robust to cross sectional dependence. Specifically, continuously-updated and bias-corrected (CupBC) of Bai et al. (2009) and Dumitrescu–Hurlin panel causality test (2012) have been employed to estimate long-run coefficients and determine the direction of relationship among the variables, respectively. The findings suggest that economic integration increases economic growth significantly in this region. However, contrary to popular belief, both democracy and human capital are negatively related to economic growth. Bidirectional causality is found between economic integration and democracy, regional integration and human capital, democracy and human capital and, democracy and labor. This study also presents several policy implications for South Asian countries.
区域经济一体化是实现繁荣稳定的关键。然而，南亚地区内贸易占其贸易总额的比例不超过5%-6%。本研究旨在考察区域经济一体化在1980-2015年期间决定南亚国家经济增长的作用。由于一个国家的冲击可能会影响该地区的另一个国家，因此本文通过采用对横截面依赖性具有稳健性的方法来考虑这一点。其中，Bai et al.(2009)和dumitrescui - hurlin面板因果检验(2012)的持续更新和偏倚校正(CupBC)分别用于估计长期系数和确定变量之间的关系方向。研究结果表明，经济一体化显著促进了该地区的经济增长。然而，与普遍看法相反，民主和人力资本都与经济增长呈负相关。经济一体化与民主、区域一体化与人力资本、民主与人力资本、民主与劳动之间存在双向因果关系。这项研究还提出了对南亚国家的若干政策影响。
{"title":"Investigating the Role of Regional Economic Integration on Growth: Fresh Insights from South Asia","authors":"M. I. Shah","doi":"10.1177/0974910120974800","DOIUrl":"https://doi.org/10.1177/0974910120974800","url":null,"abstract":"Regional economic integration is the key to achieving prosperity and stability. However, intra-regional trade in South Asia accounts for not more than 5%–6% of their total trade. This study aims to examine the role played by regional economic integration in determining the economic growth of South Asian countries over the period 1980–2015. Since shocks in one country may affect another country in the region, this is taken into account in the article by employing methodologies that are robust to cross sectional dependence. Specifically, continuously-updated and bias-corrected (CupBC) of Bai et al. (2009) and Dumitrescu–Hurlin panel causality test (2012) have been employed to estimate long-run coefficients and determine the direction of relationship among the variables, respectively. The findings suggest that economic integration increases economic growth significantly in this region. However, contrary to popular belief, both democracy and human capital are negatively related to economic growth. Bidirectional causality is found between economic integration and democracy, regional integration and human capital, democracy and human capital and, democracy and labor. This study also presents several policy implications for South Asian countries.","PeriodicalId":37512,"journal":{"name":"Global Journal of Emerging Market Economies","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2020-12-10","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1177/0974910120974800","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"45779947","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2020-12-10DOI: 10.1177/2393957520974787
R. Rijesh
This article examines the impact of capital goods import on Indian manufacturing exports at the sectoral level. Import of capital goods provides dynamic productivity gains through quality, variety, and cost-efficiency channels that further boost manufacturing exports. Since trade liberalization facilitates this process, we presumed that better access to capital inputs would enhance Indian exports for 15 major manufacturing sectors at the 3-digit level from 1997 to 2016. The panel regression analysis based on fixed effect(s) feasible generalized least squares (FGLS), and ordinary least squares (OLS) indicate that, after controlling for world demand, relative export prices, and in-house research and development (R&D), the capital goods import has a positive and statistically significant impact on the aggregate manufacturing sector. The OLS estimates at the sectoral level further confirm the positive impact across nine major sectors. In general, the engineering sectors such as metals, machinery and transport equipment, and traditional labor-intensive sectors like textiles show positive benefit from these technology imports.
{"title":"Liberalization, Import of Capital Goods, and Industrial Exports: Evidence from Indian Manufacturing Sectors","authors":"R. Rijesh","doi":"10.1177/2393957520974787","DOIUrl":"https://doi.org/10.1177/2393957520974787","url":null,"abstract":"This article examines the impact of capital goods import on Indian manufacturing exports at the sectoral level. Import of capital goods provides dynamic productivity gains through quality, variety, and cost-efficiency channels that further boost manufacturing exports. Since trade liberalization facilitates this process, we presumed that better access to capital inputs would enhance Indian exports for 15 major manufacturing sectors at the 3-digit level from 1997 to 2016. The panel regression analysis based on fixed effect(s) feasible generalized least squares (FGLS), and ordinary least squares (OLS) indicate that, after controlling for world demand, relative export prices, and in-house research and development (R&D), the capital goods import has a positive and statistically significant impact on the aggregate manufacturing sector. The OLS estimates at the sectoral level further confirm the positive impact across nine major sectors. In general, the engineering sectors such as metals, machinery and transport equipment, and traditional labor-intensive sectors like textiles show positive benefit from these technology imports.","PeriodicalId":37512,"journal":{"name":"Global Journal of Emerging Market Economies","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2020-12-10","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1177/2393957520974787","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"42239283","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2020-09-01DOI: 10.1177/0974910120961571
A. Prashad
Presence of a heterogeneous banking system across countries provides opportunities for cross-border banks to indulge in activities of regulatory arbitrage. This article attempts to investigate whether regulatory arbitrage induces the presence of foreign banks in India. Using relevant country-level data on various aspects of banking regulations, we conduct a series of panel regressions to examine the effect of cross-country gap in banking regulations on foreign banks’ presence in India. We find regulatory arbitrage as significantly determining foreign banks’ presence in India, after controlling for other factors (income level of home country, bilateral economic relationship, colonial and linguistic commonality, and geographic proximity).
{"title":"Regulatory Arbitrage and Presence of Foreign Banks: Evidence from the Indian Banking Sector","authors":"A. Prashad","doi":"10.1177/0974910120961571","DOIUrl":"https://doi.org/10.1177/0974910120961571","url":null,"abstract":"Presence of a heterogeneous banking system across countries provides opportunities for cross-border banks to indulge in activities of regulatory arbitrage. This article attempts to investigate whether regulatory arbitrage induces the presence of foreign banks in India. Using relevant country-level data on various aspects of banking regulations, we conduct a series of panel regressions to examine the effect of cross-country gap in banking regulations on foreign banks’ presence in India. We find regulatory arbitrage as significantly determining foreign banks’ presence in India, after controlling for other factors (income level of home country, bilateral economic relationship, colonial and linguistic commonality, and geographic proximity).","PeriodicalId":37512,"journal":{"name":"Global Journal of Emerging Market Economies","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2020-09-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1177/0974910120961571","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"43098573","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2020-09-01DOI: 10.1177/0974910120967155
T. Le
This article studies the relationship between freedom of press and equity returns in emerging markets. While research has shown that asymmetric information is one reason for high volatility and one type of risk in financial markets, the role of press in reducing that risk has not yet been studied thoroughly. The article attempts to bridge that gap and investigates how a free and unbiased press affects excess returns in stock market. Using the International Capital Asset Pricing Model (ICAPM), Fama-MacBeth’s methodology, and dataset from16 emerging economies from 1986 to 2000, this research is able to show that cross-country excess returns are significantly related to the degree of press freedom.
{"title":"Freedom of the Press and Equity Returns: Empirical Investigation in Emerging Markets","authors":"T. Le","doi":"10.1177/0974910120967155","DOIUrl":"https://doi.org/10.1177/0974910120967155","url":null,"abstract":"This article studies the relationship between freedom of press and equity returns in emerging markets. While research has shown that asymmetric information is one reason for high volatility and one type of risk in financial markets, the role of press in reducing that risk has not yet been studied thoroughly. The article attempts to bridge that gap and investigates how a free and unbiased press affects excess returns in stock market. Using the International Capital Asset Pricing Model (ICAPM), Fama-MacBeth’s methodology, and dataset from16 emerging economies from 1986 to 2000, this research is able to show that cross-country excess returns are significantly related to the degree of press freedom.","PeriodicalId":37512,"journal":{"name":"Global Journal of Emerging Market Economies","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2020-09-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1177/0974910120967155","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"41406634","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2020-09-01DOI: 10.1177/0974910120967567
D. Sarkar, K. Kundu
Researchers have emphasized upon the significance of alternative economy. Inferences from past studies, and the suggestions on the characteristics of alternative economic networks, are manifested in studies concerning multiple disciplines. The present study explores the definitional aspects and the facets of alternative economic networks. The analysis of a wide range of literature, sampled in the present study, employed a disciplined literature discovery process with Max Qualitative Data Analysis software to produce a tabulation of characteristics of “alternative economy”/“community economy”/“social economy.” Furthermore, these characteristics were studied through a statistical content analysis of relevant literature, and an importance-based classification of the characteristics was developed. Principal components analysis was used to distinguish thematic clusters within extant literature. These principal components were used to construct a definition of alternative economy. The present study subsequently analyzed the temporal evolution of the possible characteristics of alternative economy as proposed by scholars. The facets of alternative economy, thus identified, may be utilized for supplementary empirical studies in the context of alternative economic networks.
{"title":"Conceptual Expansion and Approaches to the Concept of Alternative Economy","authors":"D. Sarkar, K. Kundu","doi":"10.1177/0974910120967567","DOIUrl":"https://doi.org/10.1177/0974910120967567","url":null,"abstract":"Researchers have emphasized upon the significance of alternative economy. Inferences from past studies, and the suggestions on the characteristics of alternative economic networks, are manifested in studies concerning multiple disciplines. The present study explores the definitional aspects and the facets of alternative economic networks. The analysis of a wide range of literature, sampled in the present study, employed a disciplined literature discovery process with Max Qualitative Data Analysis software to produce a tabulation of characteristics of “alternative economy”/“community economy”/“social economy.” Furthermore, these characteristics were studied through a statistical content analysis of relevant literature, and an importance-based classification of the characteristics was developed. Principal components analysis was used to distinguish thematic clusters within extant literature. These principal components were used to construct a definition of alternative economy. The present study subsequently analyzed the temporal evolution of the possible characteristics of alternative economy as proposed by scholars. The facets of alternative economy, thus identified, may be utilized for supplementary empirical studies in the context of alternative economic networks.","PeriodicalId":37512,"journal":{"name":"Global Journal of Emerging Market Economies","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2020-09-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1177/0974910120967567","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"47447043","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2020-09-01DOI: 10.1177/0974910120961570
M. A. Kabir
The effectiveness of foreign aid is an important issue that encompasses a wide range of academic fields but fails to provide any underlying consensus. This study empirically investigates the effectiveness of foreign aid in reducing income inequality of the developing world and subsamples of countries from Africa, South Asia, and South America, which historically demonstrate socioeconomic and geopolitical similarities. In an attempt to recognize aid effectiveness with clarity, this study contributes to the debate in the literature to reconcile the seemingly composite effect of foreign aid on income inequality and extrapolate if the inhibitory mechanisms of institution quality have a regressing effect. Thus, central to the thesis are two intertwining legacies: (a) the possible egalitarian effect of foreign aid on the income distribution of a country and (b) aid effectiveness when a country’s institutional quality is factored in. Using panel data from eight subsamples, the study found statistically significant but marginal foreign aid effectiveness in tackling the income inequality divide of most developing countries. Moreover, the effectiveness diminishes when institutional quality is factored in, which implies a confounding yet deracinating effect on foreign aid efficacy.
{"title":"Foreign Aid Effectiveness: Evidence from Panel Data Analysis","authors":"M. A. Kabir","doi":"10.1177/0974910120961570","DOIUrl":"https://doi.org/10.1177/0974910120961570","url":null,"abstract":"The effectiveness of foreign aid is an important issue that encompasses a wide range of academic fields but fails to provide any underlying consensus. This study empirically investigates the effectiveness of foreign aid in reducing income inequality of the developing world and subsamples of countries from Africa, South Asia, and South America, which historically demonstrate socioeconomic and geopolitical similarities. In an attempt to recognize aid effectiveness with clarity, this study contributes to the debate in the literature to reconcile the seemingly composite effect of foreign aid on income inequality and extrapolate if the inhibitory mechanisms of institution quality have a regressing effect. Thus, central to the thesis are two intertwining legacies: (a) the possible egalitarian effect of foreign aid on the income distribution of a country and (b) aid effectiveness when a country’s institutional quality is factored in. Using panel data from eight subsamples, the study found statistically significant but marginal foreign aid effectiveness in tackling the income inequality divide of most developing countries. Moreover, the effectiveness diminishes when institutional quality is factored in, which implies a confounding yet deracinating effect on foreign aid efficacy.","PeriodicalId":37512,"journal":{"name":"Global Journal of Emerging Market Economies","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2020-09-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1177/0974910120961570","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"42294299","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2020-09-01DOI: 10.1177/0974910120961573
A. Y. Oyebowale
The willingness of commercial banks to provide loans is determined by various factors. In this regard, this paper provides empirical evidence on determinants of bank lending in Nigeria. The parsimonious model of this study investigates the impact of growth in loan-to-deposit ratio, growth in inflation, growth in broad money, and growth in bank capital on growth in bank lending using annual data from 1961 to 2016. This study adopts the autoregressive distributed lag (ARDL) bounds testing approach and Granger causality tests to investigate the relationship and direction of causality among the variables, respectively. The Granger causality tests show that growth in broad money Granger-causes growth in bank lending, while there is no causality from other explanatory variables to bank lending in Nigeria. Also, this study shows that growth in bank lending Granger-causes growth in loan-to-deposit ratio and growth in inflation in Nigeria. Thus, this paper argues that commercial banks in Nigeria exhibit stern concern for their liquidity and capital adequacy positions while acting as financial intermediaries. Additionally, this paper argues that the Central Bank of Nigeria (CBN) possesses “paper-based” independence.
{"title":"Determinants of Bank Lending in Nigeria","authors":"A. Y. Oyebowale","doi":"10.1177/0974910120961573","DOIUrl":"https://doi.org/10.1177/0974910120961573","url":null,"abstract":"The willingness of commercial banks to provide loans is determined by various factors. In this regard, this paper provides empirical evidence on determinants of bank lending in Nigeria. The parsimonious model of this study investigates the impact of growth in loan-to-deposit ratio, growth in inflation, growth in broad money, and growth in bank capital on growth in bank lending using annual data from 1961 to 2016. This study adopts the autoregressive distributed lag (ARDL) bounds testing approach and Granger causality tests to investigate the relationship and direction of causality among the variables, respectively. The Granger causality tests show that growth in broad money Granger-causes growth in bank lending, while there is no causality from other explanatory variables to bank lending in Nigeria. Also, this study shows that growth in bank lending Granger-causes growth in loan-to-deposit ratio and growth in inflation in Nigeria. Thus, this paper argues that commercial banks in Nigeria exhibit stern concern for their liquidity and capital adequacy positions while acting as financial intermediaries. Additionally, this paper argues that the Central Bank of Nigeria (CBN) possesses “paper-based” independence.","PeriodicalId":37512,"journal":{"name":"Global Journal of Emerging Market Economies","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2020-09-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1177/0974910120961573","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"44312358","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2020-05-25DOI: 10.1177/0974910120919001
Fisayo Fagbemi, Grace Omowumi Adeoye
Nigeria is a glaring example of a country where weak public institutions are pervasive in spite of its huge natural resource wealth. The presence of natural resource abundance has exacerbated the overwhelming development challenge in the economy. While the upshot of most empirical findings of the resource impact covers how the growth path is determined through the channel of institutions, the question as to why resource rents often fail to stimulate improved governance is more critical than ever. Hence, the study examines the effect of natural resource rents on the quality of governance in Nigeria for the period 1984–2017, using ARDL bounds test approach, Dynamic Least Squares (DOLS), and Granger Causality test based on Vector Error Correction Model (VECM). Results reveal that natural resource rents have an insignificant effect on governance indicators in the long-run as well in the short-run, suggesting that natural resource windfalls have a shallow effect on the development of good governance. However, further evidence indicates that pervasive institutional gaps in Nigeria could be stimulated or caused by the overdependence on natural resource rents and entrenched mismanagement tendencies. Thus, the study suggests that maintaining strong political commitment, curtailing overdependence on natural resources, and ensuring sound management of natural resource wealth are central for improved governance.
{"title":"Nigerian Governance Challenge: Exploring the Role of Natural Resource Rents","authors":"Fisayo Fagbemi, Grace Omowumi Adeoye","doi":"10.1177/0974910120919001","DOIUrl":"https://doi.org/10.1177/0974910120919001","url":null,"abstract":"Nigeria is a glaring example of a country where weak public institutions are pervasive in spite of its huge natural resource wealth. The presence of natural resource abundance has exacerbated the overwhelming development challenge in the economy. While the upshot of most empirical findings of the resource impact covers how the growth path is determined through the channel of institutions, the question as to why resource rents often fail to stimulate improved governance is more critical than ever. Hence, the study examines the effect of natural resource rents on the quality of governance in Nigeria for the period 1984–2017, using ARDL bounds test approach, Dynamic Least Squares (DOLS), and Granger Causality test based on Vector Error Correction Model (VECM). Results reveal that natural resource rents have an insignificant effect on governance indicators in the long-run as well in the short-run, suggesting that natural resource windfalls have a shallow effect on the development of good governance. However, further evidence indicates that pervasive institutional gaps in Nigeria could be stimulated or caused by the overdependence on natural resource rents and entrenched mismanagement tendencies. Thus, the study suggests that maintaining strong political commitment, curtailing overdependence on natural resources, and ensuring sound management of natural resource wealth are central for improved governance.","PeriodicalId":37512,"journal":{"name":"Global Journal of Emerging Market Economies","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2020-05-25","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1177/0974910120919001","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"46697850","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2020-05-01DOI: 10.1177/0974910120919347
Biliang Hu, Zhiyi Liu, Sha-sha Fan
This article summarizes government publications focusing on excess capacity from the 1990s to 2016 and argues that the market-oriented principle needs to be established to deal with the long-standing excess capacity issues in China. Based on the specificity of the long-term excess capacity in China, this article puts forward the hypothesis: The excess capacity in China is derived from the enterprise’s overinvestment, and the government intervention is one of the main drivers of the problem. The intervention is actuated by the GDP-based government performance assessment through such means as offering privileges on land use, environmental ignorance, natural resource provision and financial support. This article (a) calculates capacity utilization of 30 manufacturing industries, (b) builds a ‘mediation effect model of overinvestment’, and (c) makes use of the industrial data, economic development data and capacity utilization from 1998 to 2017 to test the hypothesis. The result shows that government intervention indeed has a significant influence on excess capacity. The support for land use and the tolerance for environmental pollution are two of the most persuasive reasons. Therefore, the Chinese government needs to make greater efforts to deepen the market reforms, standardize and improve the factor market so as to accelerate innovation, and push for industrial upgrading.
{"title":"A Study of the Mechanism of Government Intervention on Excess Capacity Through the Enterprise Overinvestment in China","authors":"Biliang Hu, Zhiyi Liu, Sha-sha Fan","doi":"10.1177/0974910120919347","DOIUrl":"https://doi.org/10.1177/0974910120919347","url":null,"abstract":"This article summarizes government publications focusing on excess capacity from the 1990s to 2016 and argues that the market-oriented principle needs to be established to deal with the long-standing excess capacity issues in China. Based on the specificity of the long-term excess capacity in China, this article puts forward the hypothesis: The excess capacity in China is derived from the enterprise’s overinvestment, and the government intervention is one of the main drivers of the problem. The intervention is actuated by the GDP-based government performance assessment through such means as offering privileges on land use, environmental ignorance, natural resource provision and financial support. This article (a) calculates capacity utilization of 30 manufacturing industries, (b) builds a ‘mediation effect model of overinvestment’, and (c) makes use of the industrial data, economic development data and capacity utilization from 1998 to 2017 to test the hypothesis. The result shows that government intervention indeed has a significant influence on excess capacity. The support for land use and the tolerance for environmental pollution are two of the most persuasive reasons. Therefore, the Chinese government needs to make greater efforts to deepen the market reforms, standardize and improve the factor market so as to accelerate innovation, and push for industrial upgrading.","PeriodicalId":37512,"journal":{"name":"Global Journal of Emerging Market Economies","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2020-05-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1177/0974910120919347","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"42214694","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2020-05-01DOI: 10.1177/0974910120930529
F. Rehman, Yibing Ding, A. Noman, Muhammad Asif Khan
This research, by using the autoregressive distributive lag method, examines the long- and short-term causal relationship between infrastructure and exports in Pakistan over the period 1990–2017. The empirical results revealed the existence of short- and long-term bi-directional causality concerning infrastructure and export in Pakistan. The results demonstrated that infrastructure strongly improves export in the short and long run. Conversely, export encourages the quality and availability of infrastructure in Pakistan in the long run. Furthermore, this study also uses sub-indices of infrastructure individually as dependent and independent variables. The study result demonstrated that the long- and short-term effects of infrastructure and its sub-indices (transport, electricity, communication, finance) on export is positive and significant. Also, when infrastructure sub-indices are used as dependent variables, the results indicate that the effect of export on sub-indices is positive and significant in the long run; however, in the short run, it is insignificant. The bi-directional linkage between infrastructure and export suggests that improving the quality and increasing the availability of infrastructure would enable Pakistan’s economy to catch up with the advanced economies, specifically in export. Furthermore, control variables of per-capita GDP, exchange rates, human capital, and domestic spending also expand the bi-directional causal relationship between Pakistan’s infrastructure and exports.
{"title":"The Nexus Between Infrastructure and Export: An Empirical Evidence from Pakistan","authors":"F. Rehman, Yibing Ding, A. Noman, Muhammad Asif Khan","doi":"10.1177/0974910120930529","DOIUrl":"https://doi.org/10.1177/0974910120930529","url":null,"abstract":"This research, by using the autoregressive distributive lag method, examines the long- and short-term causal relationship between infrastructure and exports in Pakistan over the period 1990–2017. The empirical results revealed the existence of short- and long-term bi-directional causality concerning infrastructure and export in Pakistan. The results demonstrated that infrastructure strongly improves export in the short and long run. Conversely, export encourages the quality and availability of infrastructure in Pakistan in the long run. Furthermore, this study also uses sub-indices of infrastructure individually as dependent and independent variables. The study result demonstrated that the long- and short-term effects of infrastructure and its sub-indices (transport, electricity, communication, finance) on export is positive and significant. Also, when infrastructure sub-indices are used as dependent variables, the results indicate that the effect of export on sub-indices is positive and significant in the long run; however, in the short run, it is insignificant. The bi-directional linkage between infrastructure and export suggests that improving the quality and increasing the availability of infrastructure would enable Pakistan’s economy to catch up with the advanced economies, specifically in export. Furthermore, control variables of per-capita GDP, exchange rates, human capital, and domestic spending also expand the bi-directional causal relationship between Pakistan’s infrastructure and exports.","PeriodicalId":37512,"journal":{"name":"Global Journal of Emerging Market Economies","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2020-05-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1177/0974910120930529","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"45234582","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
京公网安备 11010802042870号
京ICP备2023020795号-1
扫码关注我们
求助内容：
应助结果提醒方式：