Pub Date : 2023-05-02DOI: 10.1108/ijdi-01-2023-0004
M. Babatunde, J. Afolabi
Purpose The growing volume of trade misinvoicing in Sub-Saharan Africa (SSA) calls for serious concern, particularly given its effect on macroeconomic fundamentals. Despite the growing body of literature on the growth effect of trade misinvoicing, empirical evidence on the role of governance in moderating the effect is quite scarce, particularly for SSA. The purpose of this paper is to provide insights into the growth effect of trade misinvoicing in SSA as well as the moderating role of governance in this regard. Design/methodology/approach The feasible generalised least square estimator was applied to analyse relevant data, spanning 2009–2018, of 35 SSA countries. Governance indicators were classified into economic, political and institutional governance, and their individual role in moderating the nexus between trade misinvoicing and economic growth was explored. Findings This paper showed the presence of cross-sectional dependence among SSA countries and long-run convergence of the estimated variables. The empirical finding showed that trade misinvoicing has a negative growth effect in the selected SSA countries, but both economic and political governance are crucial in lowering the observed negative growth effect. Practical implications To curtail trade misinvoicing, SSA policymakers should go beyond just designing anti-money laundering policies to effectively implementing the policies for improved growth prospects. More so, the government of each SSA country must devise means of strengthening governance and building effective, accountable and transparent institutional frameworks that will constantly check and discourage trade misinvoicing activities. Originality/value The originality of this paper stems from its novel assessment of the role governance plays in moderating the growth effect of trade misinvoicing in SSA using the feasible generalised least square estimator. It also details the strategies needed to effectively tackle trade misinvoicing.
{"title":"Growth effect of trade misinvoicing in Sub-Saharan Africa: the role of governance","authors":"M. Babatunde, J. Afolabi","doi":"10.1108/ijdi-01-2023-0004","DOIUrl":"https://doi.org/10.1108/ijdi-01-2023-0004","url":null,"abstract":"\u0000Purpose\u0000The growing volume of trade misinvoicing in Sub-Saharan Africa (SSA) calls for serious concern, particularly given its effect on macroeconomic fundamentals. Despite the growing body of literature on the growth effect of trade misinvoicing, empirical evidence on the role of governance in moderating the effect is quite scarce, particularly for SSA. The purpose of this paper is to provide insights into the growth effect of trade misinvoicing in SSA as well as the moderating role of governance in this regard.\u0000\u0000\u0000Design/methodology/approach\u0000The feasible generalised least square estimator was applied to analyse relevant data, spanning 2009–2018, of 35 SSA countries. Governance indicators were classified into economic, political and institutional governance, and their individual role in moderating the nexus between trade misinvoicing and economic growth was explored.\u0000\u0000\u0000Findings\u0000This paper showed the presence of cross-sectional dependence among SSA countries and long-run convergence of the estimated variables. The empirical finding showed that trade misinvoicing has a negative growth effect in the selected SSA countries, but both economic and political governance are crucial in lowering the observed negative growth effect.\u0000\u0000\u0000Practical implications\u0000To curtail trade misinvoicing, SSA policymakers should go beyond just designing anti-money laundering policies to effectively implementing the policies for improved growth prospects. More so, the government of each SSA country must devise means of strengthening governance and building effective, accountable and transparent institutional frameworks that will constantly check and discourage trade misinvoicing activities.\u0000\u0000\u0000Originality/value\u0000The originality of this paper stems from its novel assessment of the role governance plays in moderating the growth effect of trade misinvoicing in SSA using the feasible generalised least square estimator. It also details the strategies needed to effectively tackle trade misinvoicing.\u0000","PeriodicalId":37830,"journal":{"name":"International Journal of Development Issues","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2023-05-02","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"46848538","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 : 2023-04-04DOI: 10.1108/ijdi-12-2022-0282
Hazwan Haini, Pang Wei Loon, L. Raimi
Purpose This study aims to examine whether diversified economies enhance the growth benefits from foreign direct investment (FDI). Diversified economies benefit from stable export earnings, stable investment composition and greater factor endowments through forward and backward linkages that can leverage superior foreign technology embedded in FDI. This is crucial as many African economies suffer from dependency while FDI is concentrated in the primary sector. Design/methodology/approach The authors use a dataset of 15 Economic Community of West African States from 1995 to 2020 and compile variables from various sources, including an export diversification index measured using the Herfindahl–Hirschman index of product concentration. The authors use a growth regression model estimated using dynamic panel estimators to control for endogeneity and simultaneity issues. Findings The results show that the effects of direct FDI are insignificant to growth considering diversification and controlling for other confounding factors. Meanwhile, diversification is associated with growth, which highlights the importance of industrial policy. More importantly, the authors find that the marginal effects of FDI are positively and significantly associated with growth when diversification levels are low, implying that production structure matters for the FDI–growth nexus in developing economies. Originality/value Previous studies have overlooked the role of export production structure on the FDI–growth nexus. Many developing economies are dependent on primary exports and suffer from dependency, which implies lower levels of factor endowments. As such, this reduces the growth gains from FDI. The authors provide new empirical evidence on the importance of export production structure on the FDI–growth nexus.
{"title":"Does export structure enhance the growth gains from foreign investment? Evidence from the ECOWAS region","authors":"Hazwan Haini, Pang Wei Loon, L. Raimi","doi":"10.1108/ijdi-12-2022-0282","DOIUrl":"https://doi.org/10.1108/ijdi-12-2022-0282","url":null,"abstract":"\u0000Purpose\u0000This study aims to examine whether diversified economies enhance the growth benefits from foreign direct investment (FDI). Diversified economies benefit from stable export earnings, stable investment composition and greater factor endowments through forward and backward linkages that can leverage superior foreign technology embedded in FDI. This is crucial as many African economies suffer from dependency while FDI is concentrated in the primary sector.\u0000\u0000\u0000Design/methodology/approach\u0000The authors use a dataset of 15 Economic Community of West African States from 1995 to 2020 and compile variables from various sources, including an export diversification index measured using the Herfindahl–Hirschman index of product concentration. The authors use a growth regression model estimated using dynamic panel estimators to control for endogeneity and simultaneity issues.\u0000\u0000\u0000Findings\u0000The results show that the effects of direct FDI are insignificant to growth considering diversification and controlling for other confounding factors. Meanwhile, diversification is associated with growth, which highlights the importance of industrial policy. More importantly, the authors find that the marginal effects of FDI are positively and significantly associated with growth when diversification levels are low, implying that production structure matters for the FDI–growth nexus in developing economies.\u0000\u0000\u0000Originality/value\u0000Previous studies have overlooked the role of export production structure on the FDI–growth nexus. Many developing economies are dependent on primary exports and suffer from dependency, which implies lower levels of factor endowments. As such, this reduces the growth gains from FDI. The authors provide new empirical evidence on the importance of export production structure on the FDI–growth nexus.\u0000","PeriodicalId":37830,"journal":{"name":"International Journal of Development Issues","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2023-04-04","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"45713486","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 : 2023-04-03DOI: 10.1108/ijdi-11-2022-0244
A. Akpa
Purpose The reduction of income inequality and the ways to fight against it are source of debate among scientific communities and policymakers. Rents from natural resources that African countries are endowed with remain one way to cope with income inequality, but its influence on income inequality is mixed. Thus, the purpose of this paper is to explore the direct and indirect transmission mechanisms through which natural resources rents can affect income inequality in sub-Saharan Africa. Design/methodology/approach This study obtained data on income inequality from the Standardised World Income Inequality Data database, natural resources rents from World Bank’s Development Indicators and education from United Nations Development Programme for the period 1990–2018. It was analysed using system generalised method of moments. Findings The results of this study showed that natural resources rents solely increased income inequality, but its interaction with education significantly reduced income inequality. Research limitations/implications These findings suggest that the reduction of income inequality by natural resources rents passes through a good education system in sub-Saharan African countries. Originality/value In previous studies, authors analysed the role of education in the relationship between natural resources rents and income inequality by inserting the two variables separately in the model. But in this paper, the author analysed the role of education in the relationship between natural resources rents and income inequality by using the interaction of natural resources rents and education.
{"title":"Effect of natural resources rents on income inequality in sub-Saharan Africa: exploring the direct and indirect transmission mechanisms","authors":"A. Akpa","doi":"10.1108/ijdi-11-2022-0244","DOIUrl":"https://doi.org/10.1108/ijdi-11-2022-0244","url":null,"abstract":"\u0000Purpose\u0000The reduction of income inequality and the ways to fight against it are source of debate among scientific communities and policymakers. Rents from natural resources that African countries are endowed with remain one way to cope with income inequality, but its influence on income inequality is mixed. Thus, the purpose of this paper is to explore the direct and indirect transmission mechanisms through which natural resources rents can affect income inequality in sub-Saharan Africa.\u0000\u0000\u0000Design/methodology/approach\u0000This study obtained data on income inequality from the Standardised World Income Inequality Data database, natural resources rents from World Bank’s Development Indicators and education from United Nations Development Programme for the period 1990–2018. It was analysed using system generalised method of moments.\u0000\u0000\u0000Findings\u0000The results of this study showed that natural resources rents solely increased income inequality, but its interaction with education significantly reduced income inequality.\u0000\u0000\u0000Research limitations/implications\u0000These findings suggest that the reduction of income inequality by natural resources rents passes through a good education system in sub-Saharan African countries.\u0000\u0000\u0000Originality/value\u0000In previous studies, authors analysed the role of education in the relationship between natural resources rents and income inequality by inserting the two variables separately in the model. But in this paper, the author analysed the role of education in the relationship between natural resources rents and income inequality by using the interaction of natural resources rents and education.\u0000","PeriodicalId":37830,"journal":{"name":"International Journal of Development Issues","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2023-04-03","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"42737337","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 : 2023-03-23DOI: 10.1108/ijdi-10-2022-0219
James Guy Korman
Purpose This study aims to analyze the effects of economic inequalities on state capture in Latin America. Economic inequalities are the defining issues of our time. While the effect of economic inequality has been explored before on its impact on state capture in Latin America, it has often been done in a qualitative manner. Moreover, most quantitative research to date uses poor proxy variables to assess the impact of inequalities on corruption and or state capture, such as the Gini coefficient, which suffers from a lot of missing data. Design/methodology/approach A random effects regression model is used to enable the exploitation of between level variation to greater generalize the results across the Latin American region while minimizing bias to the coefficient estimates. Findings The results demonstrate that the top 1% wealth inequality is highly statistically significant and positive in explaining the variation in state capture. The greater the share of wealth the 1% hold, the more state capture we should expect. Originality/value To the best of the authors’ knowledge, this paper presents the first empirical study using a novel variable, the top 1% share wealth inequality derived from the World Inequality Database that directly measures the top 1%’s share of wealth overall. The study examines the empirical effect of the top 1%’s share of wealth inequality in contributing to state capture. Nineteen Latin American countries are analyzed across the temporal period 1996–2021.
{"title":"Assessing the impact of wealth inequality on state capture in Latin America","authors":"James Guy Korman","doi":"10.1108/ijdi-10-2022-0219","DOIUrl":"https://doi.org/10.1108/ijdi-10-2022-0219","url":null,"abstract":"\u0000Purpose\u0000This study aims to analyze the effects of economic inequalities on state capture in Latin America. Economic inequalities are the defining issues of our time. While the effect of economic inequality has been explored before on its impact on state capture in Latin America, it has often been done in a qualitative manner. Moreover, most quantitative research to date uses poor proxy variables to assess the impact of inequalities on corruption and or state capture, such as the Gini coefficient, which suffers from a lot of missing data.\u0000\u0000\u0000Design/methodology/approach\u0000A random effects regression model is used to enable the exploitation of between level variation to greater generalize the results across the Latin American region while minimizing bias to the coefficient estimates.\u0000\u0000\u0000Findings\u0000The results demonstrate that the top 1% wealth inequality is highly statistically significant and positive in explaining the variation in state capture. The greater the share of wealth the 1% hold, the more state capture we should expect.\u0000\u0000\u0000Originality/value\u0000To the best of the authors’ knowledge, this paper presents the first empirical study using a novel variable, the top 1% share wealth inequality derived from the World Inequality Database that directly measures the top 1%’s share of wealth overall. The study examines the empirical effect of the top 1%’s share of wealth inequality in contributing to state capture. Nineteen Latin American countries are analyzed across the temporal period 1996–2021.\u0000","PeriodicalId":37830,"journal":{"name":"International Journal of Development Issues","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2023-03-23","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"44835199","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 : 2023-03-22DOI: 10.1108/ijdi-11-2022-0248
J. Dada, F. Ajide, M. Arnaut
Purpose The purpose of this examine the impact of income inequality and shadow economy on environmental degradation given the growing income inequality, shadow economy and ecological degradation in developing countries. Thus, this study is motivated to offer empirical insight into how income inequality and shadow economy influence the environment in African countries. Design/methodology/approach Data from 29 countries in Africa between 2000 and 2017 were used, while the novel method of moments quantile regression of Machado and Silva (2019) and Dumitrescu and Hurlin (D-H) (2012) granger causality is used as the estimation techniques. Findings The results established the presence of cross-sectional dependence and slope heterogeneity in the panel, while Westerlund panel cointegration confirmed the long-run cointegration among the variables. The results from the quantile regression suggest that income inequality increases environmental degradation from the 5th to the 30th quantiles, while from the 70th quantiles, income inequality reduces ecological degradation. The shadow economy negatively influences environmental degradation across the quantiles, strengthening environmental quality. Per capita income (economic growth) and financial development positively impact environmental degradation throughout the quantiles. However, urbanization reduces environmental degradation from 60th to 95th quantiles. The D-H causality established a two-way relationship between income inequality and environmental degradation, while one-way from shadow economy, per capita income and urbanization to environmental degradation were established. Originality/value This study provides fresh insights into the nexus between shadow economy and environmental quality in the presence of higher levels of income inequality for the case of African region. The study applies quantile analysis via moment proposed by Machado and Silva (2019). This technique shows that the impact of income inequality and shadow economy on environmental degradation is heterogeneous across the quantiles of ecological footprints in Africa.
{"title":"Income inequality, shadow economy and environmental degradation in Africa: quantile regression via moment’s approach","authors":"J. Dada, F. Ajide, M. Arnaut","doi":"10.1108/ijdi-11-2022-0248","DOIUrl":"https://doi.org/10.1108/ijdi-11-2022-0248","url":null,"abstract":"\u0000Purpose\u0000The purpose of this examine the impact of income inequality and shadow economy on environmental degradation given the growing income inequality, shadow economy and ecological degradation in developing countries. Thus, this study is motivated to offer empirical insight into how income inequality and shadow economy influence the environment in African countries.\u0000\u0000\u0000Design/methodology/approach\u0000Data from 29 countries in Africa between 2000 and 2017 were used, while the novel method of moments quantile regression of Machado and Silva (2019) and Dumitrescu and Hurlin (D-H) (2012) granger causality is used as the estimation techniques.\u0000\u0000\u0000Findings\u0000The results established the presence of cross-sectional dependence and slope heterogeneity in the panel, while Westerlund panel cointegration confirmed the long-run cointegration among the variables. The results from the quantile regression suggest that income inequality increases environmental degradation from the 5th to the 30th quantiles, while from the 70th quantiles, income inequality reduces ecological degradation. The shadow economy negatively influences environmental degradation across the quantiles, strengthening environmental quality. Per capita income (economic growth) and financial development positively impact environmental degradation throughout the quantiles. However, urbanization reduces environmental degradation from 60th to 95th quantiles. The D-H causality established a two-way relationship between income inequality and environmental degradation, while one-way from shadow economy, per capita income and urbanization to environmental degradation were established.\u0000\u0000\u0000Originality/value\u0000This study provides fresh insights into the nexus between shadow economy and environmental quality in the presence of higher levels of income inequality for the case of African region. The study applies quantile analysis via moment proposed by Machado and Silva (2019). This technique shows that the impact of income inequality and shadow economy on environmental degradation is heterogeneous across the quantiles of ecological footprints in Africa.\u0000","PeriodicalId":37830,"journal":{"name":"International Journal of Development Issues","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2023-03-22","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"44580990","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 : 2023-03-03DOI: 10.1108/ijdi-12-2022-0270
Demet Beton Kalmaz
Purpose Female labour force participation (FLFP) is undeniably critical for both developing and developed countries. This study aims to investigate the impact of economic risk on FLFP, controlling economic well-being, fertility rate and education, considering the asymmetric relationship among the indicators in Turkey. Design/methodology/approach Time series data covering years from 1988Q1 to 2019Q4 is deployed for the empirical analysis to identify the long-run asymmetric link. Empirical analysis of the study starts with the employment of the Augmented Dickey-Fuller unit root test with the breakpoint to test for the order of integration of time series and to capture the breakpoints. The Brock-Dechert-Scheibkman test is applied to determine if or not the econometric model is correctly identified. Nonlinear autoregressive distributed lag (NARDL) bounds test is used to examine the existence of an asymmetric link between FLFP and economic well-being. The empirical analysis follows the investigation of the determinants of FLFP through the employment of the NARDL model. Findings The existence of long-run link among the time series is confirmed through the results obtained from the NARDL bounds test. Furthermore, long-run NARDL estimations confirm that (i) positive shocks in economic well-being increases FLFP; (ii) positive shock in education negatively impacts FLFP; (iii) FLFP is negatively affected by economic risk; and (iv) finally, increased fertility rate increases FLFP in Turkey. Originality/value This paper is checked from turnitin for the plagiarism which is estimated to be less than 20%. It is an original paper that fills the gap in literature and provides meaningful insight both for the policymakers and academics.
{"title":"Asymmetric link between economic well-being and labour market equity in Turkey","authors":"Demet Beton Kalmaz","doi":"10.1108/ijdi-12-2022-0270","DOIUrl":"https://doi.org/10.1108/ijdi-12-2022-0270","url":null,"abstract":"\u0000Purpose\u0000Female labour force participation (FLFP) is undeniably critical for both developing and developed countries. This study aims to investigate the impact of economic risk on FLFP, controlling economic well-being, fertility rate and education, considering the asymmetric relationship among the indicators in Turkey.\u0000\u0000\u0000Design/methodology/approach\u0000Time series data covering years from 1988Q1 to 2019Q4 is deployed for the empirical analysis to identify the long-run asymmetric link. Empirical analysis of the study starts with the employment of the Augmented Dickey-Fuller unit root test with the breakpoint to test for the order of integration of time series and to capture the breakpoints. The Brock-Dechert-Scheibkman test is applied to determine if or not the econometric model is correctly identified. Nonlinear autoregressive distributed lag (NARDL) bounds test is used to examine the existence of an asymmetric link between FLFP and economic well-being. The empirical analysis follows the investigation of the determinants of FLFP through the employment of the NARDL model.\u0000\u0000\u0000Findings\u0000The existence of long-run link among the time series is confirmed through the results obtained from the NARDL bounds test. Furthermore, long-run NARDL estimations confirm that (i) positive shocks in economic well-being increases FLFP; (ii) positive shock in education negatively impacts FLFP; (iii) FLFP is negatively affected by economic risk; and (iv) finally, increased fertility rate increases FLFP in Turkey.\u0000\u0000\u0000Originality/value\u0000This paper is checked from turnitin for the plagiarism which is estimated to be less than 20%. It is an original paper that fills the gap in literature and provides meaningful insight both for the policymakers and academics.\u0000","PeriodicalId":37830,"journal":{"name":"International Journal of Development Issues","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2023-03-03","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"47097955","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 : 2023-01-21DOI: 10.21608/idj.2023.158838.1002
J. Shearman
{"title":"Combining Sustainable Food Production with Historic Preservation in Egypt (Report)","authors":"J. Shearman","doi":"10.21608/idj.2023.158838.1002","DOIUrl":"https://doi.org/10.21608/idj.2023.158838.1002","url":null,"abstract":"","PeriodicalId":37830,"journal":{"name":"International Journal of Development Issues","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2023-01-21","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"82448356","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 : 2023-01-21DOI: 10.21608/idj.2023.158838.1001
John Shearman
{"title":"Combining Sustainable Food Production with Historic Preservation in Egypt","authors":"John Shearman","doi":"10.21608/idj.2023.158838.1001","DOIUrl":"https://doi.org/10.21608/idj.2023.158838.1001","url":null,"abstract":"","PeriodicalId":37830,"journal":{"name":"International Journal of Development Issues","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2023-01-21","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"134915909","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 : 2023-01-11DOI: 10.1108/ijdi-10-2022-0210
D. Shevchenko, Weili Zhao, Qiyang Guo
Purpose The purpose of this study is to probe into the influence mechanism of financial opening onto industrial restructuring from the prism of financial development and examine the role of the credit market, capital market and currency market in transmitting the impact of financial opening onto industrial restructuring in both developed countries and developing countries. Design/methodology/approach In the theoretical model, the indicator of financial opening was introduced in Cobb–Douglas production function formula. Using constant elasticity of substitution utility function, based on Engel’s law, the optimal industrial structure in the economy was concluded. For the empirical analysis, data was collected from 36 developed countries and 34 developing countries during the period 2000 to 2019. Multiple mediator models with bootstrap techniques were used to identify the linkage between financial opening, financial development and industrial restructuring. Findings First, there is a U-shaped relationship between financial opening and industrial restructuring. Second, financial development plays a mediating role in transmitting the effects of financial opening onto industrial restructuring mainly through the credit market at the global level. Third, developed countries are in a trend of “reindustrialization,” while developing countries show a trend of “premature deindustrialization.” Moreover, for developed countries, the capital market leads to reindustrialization, while the credit market and currency market contribute to deindustrialization. For developing countries, the capital market and credit market lead to deindustrialization, while the currency market contributes to industrialization. Originality/value Unlike most previous researches, this paper focuses on examining three-variable relationship between financial opening, financial development and domestic industrial restructuring. Against the backdrop of the pandemic, monetary policy shifts of developed economies have led to an increase in cross-border capital flows, which will lead to the increasing risks for international financial markets and the reallocation of the global value chain. It is of great significance to clarify the linkage between these three variables in the face of a volatile international financial environment.
{"title":"Financial opening, financial development and industrial restructuring: a mediating effect analysis","authors":"D. Shevchenko, Weili Zhao, Qiyang Guo","doi":"10.1108/ijdi-10-2022-0210","DOIUrl":"https://doi.org/10.1108/ijdi-10-2022-0210","url":null,"abstract":"\u0000Purpose\u0000The purpose of this study is to probe into the influence mechanism of financial opening onto industrial restructuring from the prism of financial development and examine the role of the credit market, capital market and currency market in transmitting the impact of financial opening onto industrial restructuring in both developed countries and developing countries.\u0000\u0000\u0000Design/methodology/approach\u0000In the theoretical model, the indicator of financial opening was introduced in Cobb–Douglas production function formula. Using constant elasticity of substitution utility function, based on Engel’s law, the optimal industrial structure in the economy was concluded. For the empirical analysis, data was collected from 36 developed countries and 34 developing countries during the period 2000 to 2019. Multiple mediator models with bootstrap techniques were used to identify the linkage between financial opening, financial development and industrial restructuring.\u0000\u0000\u0000Findings\u0000First, there is a U-shaped relationship between financial opening and industrial restructuring. Second, financial development plays a mediating role in transmitting the effects of financial opening onto industrial restructuring mainly through the credit market at the global level. Third, developed countries are in a trend of “reindustrialization,” while developing countries show a trend of “premature deindustrialization.” Moreover, for developed countries, the capital market leads to reindustrialization, while the credit market and currency market contribute to deindustrialization. For developing countries, the capital market and credit market lead to deindustrialization, while the currency market contributes to industrialization.\u0000\u0000\u0000Originality/value\u0000Unlike most previous researches, this paper focuses on examining three-variable relationship between financial opening, financial development and domestic industrial restructuring. Against the backdrop of the pandemic, monetary policy shifts of developed economies have led to an increase in cross-border capital flows, which will lead to the increasing risks for international financial markets and the reallocation of the global value chain. It is of great significance to clarify the linkage between these three variables in the face of a volatile international financial environment.\u0000","PeriodicalId":37830,"journal":{"name":"International Journal of Development Issues","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2023-01-11","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"45764312","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 : 2023-01-01DOI: 10.21608/ijd.2023.313388
Shimaa M. Mohamed, H. Ali
{"title":"Methodical assessment of the integration of quality-of-life indicators into Egypt''''s informal housing policies","authors":"Shimaa M. Mohamed, H. Ali","doi":"10.21608/ijd.2023.313388","DOIUrl":"https://doi.org/10.21608/ijd.2023.313388","url":null,"abstract":"","PeriodicalId":37830,"journal":{"name":"International Journal of Development Issues","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2023-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"72977250","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}
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