Pub Date : 2020-11-01DOI: 10.13189/aeb.2020.080603
Catherine Tabequero
This study examines the nature of the discourse in advertising. The focus is on Blizzard Entertainment’s Marketing Communications, which is directed towards the promotion of their products and service to the general public. The study aims at uncovering the basic elements of the most pervasive, influential and inescapable discourse of Blizzard Entertainment advertisements. Norman Fairclough’s 3-D model of visual design was used to analyze the data. It focuses on the interaction of language, image and format and analyzes advertising persuasive strategies. Also, this study gives analyses of certain ads, utilizing various methods of interpretations and ends with a discussion on advertising discourse. In this connection, the analyses are provided with a perspective on demonstrating the advertisements develop importance through collaboration with different kinds of discourse, and how it is indistinguishable from social and cultural discourse. Thus, it discusses Blizzard Entertainment’s advertisements influence and on how these advertisements have an impact on our society and cultural values. The results of this descriptive study serve as a support and of great help to the future researches related to social media and advertising.
{"title":"Discourse Analysis of Blizzard Entertainment's Marketing Communications","authors":"Catherine Tabequero","doi":"10.13189/aeb.2020.080603","DOIUrl":"https://doi.org/10.13189/aeb.2020.080603","url":null,"abstract":"This study examines the nature of the discourse in advertising. The focus is on Blizzard Entertainment’s Marketing Communications, which is directed towards the promotion of their products and service to the general public. The study aims at uncovering the basic elements of the most pervasive, influential and inescapable discourse of Blizzard Entertainment advertisements. Norman Fairclough’s 3-D model of visual design was used to analyze the data. It focuses on the interaction of language, image and format and analyzes advertising persuasive strategies. Also, this study gives analyses of certain ads, utilizing various methods of interpretations and ends with a discussion on advertising discourse. In this connection, the analyses are provided with a perspective on demonstrating the advertisements develop importance through collaboration with different kinds of discourse, and how it is indistinguishable from social and cultural discourse. Thus, it discusses Blizzard Entertainment’s advertisements influence and on how these advertisements have an impact on our society and cultural values. The results of this descriptive study serve as a support and of great help to the future researches related to social media and advertising.","PeriodicalId":91438,"journal":{"name":"Advances in economics and business","volume":"8 1","pages":"333-345"},"PeriodicalIF":0.0,"publicationDate":"2020-11-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"43935836","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 : 2020-11-01DOI: 10.13189/aeb.2020.080604
P. S. Kamble
It is of topmost importance to undertake an economic valuation of the ecosystem services such as a river, which is aquatic and natural ecosystem, because of their very important role in the development and welfare of the society. It is against this overall backdrop, the present research study attempts to carry out an economic valuation of the services of the Panchganga river as an aquatic eco system. The empirical analysis of the economic valuation of the services in monetary terms being provided by the Panchganga river ecosystem estimates its total economic value. No doubt, it is worth of Rs. 5459.41 lakh per annum is really important and valuable, which indicates its role in the socio economic development of the area under our study. It is an indicator of the number and variety of services being provided by the Panchganga useful for agriculture, allied activities, industry and business development along with water for domestic use of the area and its people. The analysis of the determinants of the economic value of the Panchganga river reveals that the non-economic than the economic factors are very much dominant and effective in generating the total economic value.
{"title":"Valuation of Panchganga River Ecosystem Services in Urban Kolhapur District of Maharashtra (India)","authors":"P. S. Kamble","doi":"10.13189/aeb.2020.080604","DOIUrl":"https://doi.org/10.13189/aeb.2020.080604","url":null,"abstract":"It is of topmost importance to undertake an economic valuation of the ecosystem services such as a river, which is aquatic and natural ecosystem, because of their very important role in the development and welfare of the society. It is against this overall backdrop, the present research study attempts to carry out an economic valuation of the services of the Panchganga river as an aquatic eco system. The empirical analysis of the economic valuation of the services in monetary terms being provided by the Panchganga river ecosystem estimates its total economic value. No doubt, it is worth of Rs. 5459.41 lakh per annum is really important and valuable, which indicates its role in the socio economic development of the area under our study. It is an indicator of the number and variety of services being provided by the Panchganga useful for agriculture, allied activities, industry and business development along with water for domestic use of the area and its people. The analysis of the determinants of the economic value of the Panchganga river reveals that the non-economic than the economic factors are very much dominant and effective in generating the total economic value.","PeriodicalId":91438,"journal":{"name":"Advances in economics and business","volume":"8 1","pages":"346-361"},"PeriodicalIF":0.0,"publicationDate":"2020-11-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"42508315","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 : 2020-11-01DOI: 10.13189/aeb.2020.080605
Zeineb Ouni, P. Bernard, M. Plaisent
The main purpose of this paper is to bring a better understanding of the phenomenon of sovereign wealth funds (SWFs) by dealing with their definitional issues. Our objective is to understand why it would be difficult to have a standard and common definition of SWFs and how this definition concern could present a problem, especially for academic research. We analyzed the history of SWFs, their creation objectives, their sources of funding, the performance of their investments and their governance structure and compared them with other types of funds. We find that the lack of a common definition stems mainly from their: i) hybrid nature: SWFs are created and controlled by governments, but their investment strategies are similar to private funds; ii) high heterogeneity: SWFs have different structures, sources of funding and other creation objectives; iii) lack of transparency. Despite the establishment of Generally Accepted Principles and Practices for SWFs know as Santiago Principles, SWFs remain opaque structure and iv) similarities with other sovereign and private investors, especially in their investment strategies. These definitional problems could explain the lack of consensus on empirical studies about SWFs and the issues about the regulation of their activities. Otherwise, this study targets to contribute to the global debate on the regulation of their transactions, essentially by clarifying their subtle differences with other investment vehicles.
{"title":"Sovereign Wealth Funds Definition: Challenges and Concerns","authors":"Zeineb Ouni, P. Bernard, M. Plaisent","doi":"10.13189/aeb.2020.080605","DOIUrl":"https://doi.org/10.13189/aeb.2020.080605","url":null,"abstract":"The main purpose of this paper is to bring a better understanding of the phenomenon of sovereign wealth funds (SWFs) by dealing with their definitional issues. Our objective is to understand why it would be difficult to have a standard and common definition of SWFs and how this definition concern could present a problem, especially for academic research. We analyzed the history of SWFs, their creation objectives, their sources of funding, the performance of their investments and their governance structure and compared them with other types of funds. We find that the lack of a common definition stems mainly from their: i) hybrid nature: SWFs are created and controlled by governments, but their investment strategies are similar to private funds; ii) high heterogeneity: SWFs have different structures, sources of funding and other creation objectives; iii) lack of transparency. Despite the establishment of Generally Accepted Principles and Practices for SWFs know as Santiago Principles, SWFs remain opaque structure and iv) similarities with other sovereign and private investors, especially in their investment strategies. These definitional problems could explain the lack of consensus on empirical studies about SWFs and the issues about the regulation of their activities. Otherwise, this study targets to contribute to the global debate on the regulation of their transactions, essentially by clarifying their subtle differences with other investment vehicles.","PeriodicalId":91438,"journal":{"name":"Advances in economics and business","volume":"8 1","pages":"362-376"},"PeriodicalIF":0.0,"publicationDate":"2020-11-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"47711305","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 : 2020-11-01DOI: 10.13189/aeb.2020.080602
Yan Zhang
In this paper, I analyze China’s economic growth and financial development after 1978’s reform and opening-up, and verify whether convergence hypothesis and financial deepening hypothesis exist by using the provincial data from 1978 to 2014. The main contribution is that I examine regional disparities in China's economic growth and financial development by period, consider the effects of Deng Xiaoping’s Southern Tour Talks in 1992 and China’s accession to the WTO in 2001 on regional economic growth and financial development. The empirical analyses clarify that the convergence hypothesis is valid for the whole sample period of 1978–2014 and the sub-period 2002–2014. Analyses of economic convergence reveal that the poorer provinces have tended to show higher rates of economic growth than the richer provinces during the period 1978–2014, particularly after China’s accession to the WTO in 2001. On the other hand, the financial deepening hypothesis only appears to be valid to the whole period of 1978–2014, which means that the provinces with larger financial sectors have tended to show higher rates of economic growth than the provinces with smaller financial sectors over the long term, but this was not valid for any of the sub-periods considered (1978–1991, 1992–2001, and 2002–2014) due to reforms of SOEs, diversification of corporate financing methods, and changes in China’s economic and financial situation, which prevented bank loans from making a positive impact on economic growth during any one of the sub-periods.
{"title":"China's Economic Growth and Financial Development after Reform and Opening-up","authors":"Yan Zhang","doi":"10.13189/aeb.2020.080602","DOIUrl":"https://doi.org/10.13189/aeb.2020.080602","url":null,"abstract":"In this paper, I analyze China’s economic growth and financial development after 1978’s reform and opening-up, and verify whether convergence hypothesis and financial deepening hypothesis exist by using the provincial data from 1978 to 2014. The main contribution is that I examine regional disparities in China's economic growth and financial development by period, consider the effects of Deng Xiaoping’s Southern Tour Talks in 1992 and China’s accession to the WTO in 2001 on regional economic growth and financial development. The empirical analyses clarify that the convergence hypothesis is valid for the whole sample period of 1978–2014 and the sub-period 2002–2014. Analyses of economic convergence reveal that the poorer provinces have tended to show higher rates of economic growth than the richer provinces during the period 1978–2014, particularly after China’s accession to the WTO in 2001. On the other hand, the financial deepening hypothesis only appears to be valid to the whole period of 1978–2014, which means that the provinces with larger financial sectors have tended to show higher rates of economic growth than the provinces with smaller financial sectors over the long term, but this was not valid for any of the sub-periods considered (1978–1991, 1992–2001, and 2002–2014) due to reforms of SOEs, diversification of corporate financing methods, and changes in China’s economic and financial situation, which prevented bank loans from making a positive impact on economic growth during any one of the sub-periods.","PeriodicalId":91438,"journal":{"name":"Advances in economics and business","volume":"8 1","pages":"321-332"},"PeriodicalIF":0.0,"publicationDate":"2020-11-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"43550350","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: 10.13189/aeb.2020.080503
Lai Ferry Sugianto, Chai-Liang Huang
This research tries to determine the weather factors affect mood and human behavior. Some previous researches find that weather can influence human behavior and mood, like concentration, optimism, self-confidence, aggression, and performance. Many weather indicators can affect human behavior and mood, but only few of them have been investigated. In this paper, we use temperature, precipitation, hours of sunshine, and humidity. Mood and behavior make people make decisions based on such indicators, including the trading decision in the stock market. Therefore, mood and behavior turn the investors to become more irrational. In this research, geographical locations are also being included because the difference in location can make a difference in the climate. By using indices return from 44 countries, we get that higher temperature creates more aggression and makes investors more aggressive and risk-taking, leading to the higher returns, hours of sunshine also make investors more optimistic and less risk-averse which leads to higher returns. Higher humidity also leads to a higher concentration. We also find that in Europe and Asia, the effect of weather variables is much stronger than in other continents. Additional results show that stock markets in Europe and Asia are easily affected by weather factors, and the high elevation also has a more significant effect.
{"title":"The Influence of Weather Factors to Mood and Human Behavior on the Stock Market Indices Performance by the Tendency towards Geographical Location","authors":"Lai Ferry Sugianto, Chai-Liang Huang","doi":"10.13189/aeb.2020.080503","DOIUrl":"https://doi.org/10.13189/aeb.2020.080503","url":null,"abstract":"This research tries to determine the weather factors affect mood and human behavior. Some previous researches find that weather can influence human behavior and mood, like concentration, optimism, self-confidence, aggression, and performance. Many weather indicators can affect human behavior and mood, but only few of them have been investigated. In this paper, we use temperature, precipitation, hours of sunshine, and humidity. Mood and behavior make people make decisions based on such indicators, including the trading decision in the stock market. Therefore, mood and behavior turn the investors to become more irrational. In this research, geographical locations are also being included because the difference in location can make a difference in the climate. By using indices return from 44 countries, we get that higher temperature creates more aggression and makes investors more aggressive and risk-taking, leading to the higher returns, hours of sunshine also make investors more optimistic and less risk-averse which leads to higher returns. Higher humidity also leads to a higher concentration. We also find that in Europe and Asia, the effect of weather variables is much stronger than in other continents. Additional results show that stock markets in Europe and Asia are easily affected by weather factors, and the high elevation also has a more significant effect.","PeriodicalId":91438,"journal":{"name":"Advances in economics and business","volume":"8 1","pages":"277-293"},"PeriodicalIF":0.0,"publicationDate":"2020-09-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"43292093","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: 10.13189/aeb.2020.080502
F. Elessawy
Abu Dhabi is the capital of the United Arab Emirates. Abu Dhabi and other Arabian Gulf cities have developed rapidly in the second half of 20th century, due to the increase of oil and gas revenues. The total population of the city has grown by 1000% over the last 42 years; according to the first census in 1975, the total population was 120,000, which increased in 2018 to more than 1.25 million, with annual growth rate more than 5.7%. This increase makes Abu Dhabi's population be one of the fastest-growing urban centres in the world. The current population increase, resulted from remarkable declining of birth rates and increasing flow of immigrants, rises from only 87 thousand in 1975 to half-million in 2005. The immigrant flow has doubled to more than one million in 2018. The non-national proportion increased continuously from 72 % in 1975 to nearly 90 % of the total population of the city in 2018. Most of them are Asians. These figures reflect the enormity of the growing role of non-national workers in the population growth of the city over the last four decades. Besides, the increased number of foreigners is creating many positive and negative impacts on Emirati society. This study investigates some effects on the demographic characteristics of Emirati society. particularly, on creating an imbalance of age and sex ratios and unique composition of labour force. The researcher applied the topical approach including analytical and cartographic techniques to reach the study aims.
{"title":"The Consequences of Population Growth on the Demographic Characteristics of Abu Dhabi City in the United Arab Emirates","authors":"F. Elessawy","doi":"10.13189/aeb.2020.080502","DOIUrl":"https://doi.org/10.13189/aeb.2020.080502","url":null,"abstract":"Abu Dhabi is the capital of the United Arab Emirates. Abu Dhabi and other Arabian Gulf cities have developed rapidly in the second half of 20th century, due to the increase of oil and gas revenues. The total population of the city has grown by 1000% over the last 42 years; according to the first census in 1975, the total population was 120,000, which increased in 2018 to more than 1.25 million, with annual growth rate more than 5.7%. This increase makes Abu Dhabi's population be one of the fastest-growing urban centres in the world. The current population increase, resulted from remarkable declining of birth rates and increasing flow of immigrants, rises from only 87 thousand in 1975 to half-million in 2005. The immigrant flow has doubled to more than one million in 2018. The non-national proportion increased continuously from 72 % in 1975 to nearly 90 % of the total population of the city in 2018. Most of them are Asians. These figures reflect the enormity of the growing role of non-national workers in the population growth of the city over the last four decades. Besides, the increased number of foreigners is creating many positive and negative impacts on Emirati society. This study investigates some effects on the demographic characteristics of Emirati society. particularly, on creating an imbalance of age and sex ratios and unique composition of labour force. The researcher applied the topical approach including analytical and cartographic techniques to reach the study aims.","PeriodicalId":91438,"journal":{"name":"Advances in economics and business","volume":"8 1","pages":"268-276"},"PeriodicalIF":0.0,"publicationDate":"2020-09-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"46536131","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: 10.13189/aeb.2020.080505
Suna Korkmaz, Muzhgan Abdullazade
Unemployment and inflation are major problems in macroeconomics. While solving the unemployment problem is a priority for some governments, for others it is bringing inflation under control. Unemployment and inflation surface are two undesirable problems for economies. Governments of countries implement monetary and fiscal policies suited to their aims to solve these problems. The Group 6 (G6) states are countries that have influence in steering the policies of international institutions. In this regard, this study investigated whether there is a relationship between the inflation rate and unemployment in nine randomly selected G6 countries (Australia, Brazil, Canada, France, Germany, Italy, the Russian Federation, Turkey, and the United Kingdom), using data from the period 2009–2017 and applying a panel causality test. According to the Granger causality test, there is a unidirectional causality from inflation rate to unemployment rate. According to the results of the research, bringing inflation under control in these countries is becoming a prior goal. As a result of the policies to bring the inflation under control, the demand for goods and services in the economy decreases. As the aggregate demand for goods and services in the economy decreases, the demand for the workforce decreases as well. In macroeconomic policies there is a relationship between inflation and unemployment. While unemployment increases inflation decreases and while unemployment decreases inflation increases. Our research results also support this. When inflation is intended to be brought under control, it causes unemployment in the economy.
{"title":"The Causal Relationship between Unemployment and Inflation in G6 Countries","authors":"Suna Korkmaz, Muzhgan Abdullazade","doi":"10.13189/aeb.2020.080505","DOIUrl":"https://doi.org/10.13189/aeb.2020.080505","url":null,"abstract":"Unemployment and inflation are major problems in macroeconomics. While solving the unemployment problem is a priority for some governments, for others it is bringing inflation under control. Unemployment and inflation surface are two undesirable problems for economies. Governments of countries implement monetary and fiscal policies suited to their aims to solve these problems. The Group 6 (G6) states are countries that have influence in steering the policies of international institutions. In this regard, this study investigated whether there is a relationship between the inflation rate and unemployment in nine randomly selected G6 countries (Australia, Brazil, Canada, France, Germany, Italy, the Russian Federation, Turkey, and the United Kingdom), using data from the period 2009–2017 and applying a panel causality test. According to the Granger causality test, there is a unidirectional causality from inflation rate to unemployment rate. According to the results of the research, bringing inflation under control in these countries is becoming a prior goal. As a result of the policies to bring the inflation under control, the demand for goods and services in the economy decreases. As the aggregate demand for goods and services in the economy decreases, the demand for the workforce decreases as well. In macroeconomic policies there is a relationship between inflation and unemployment. While unemployment increases inflation decreases and while unemployment decreases inflation increases. Our research results also support this. When inflation is intended to be brought under control, it causes unemployment in the economy.","PeriodicalId":91438,"journal":{"name":"Advances in economics and business","volume":"8 1","pages":"303-309"},"PeriodicalIF":0.0,"publicationDate":"2020-09-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"49664316","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: 10.13189/aeb.2020.080501
Mutua Daniel Katumo, James N. Maingi
Youth employment opportunities have been the priority by the Kenyan Government over the past years, and various policies have been implemented to assure the employment opportunities growth. Economic growth is reckoned to be essential since a positive growth rate will encourage inward investment and improve revenues, which can be spent on long-term public sector works. However, youth unemployment is a consistent problematic element in Kenya, affecting the economy to a large extent. The general objective of this study is to examine the relationship between youth unemployment and economic growth in Kenya. The specific objectives of the study are to investigate the causal relationship between youth unemployment and economic growth in Kenya and to analyze the effect of economic growth on youth unemployment in Kenya. The theories studied include the theory of surplus-value, Solow-swan model, Okun's law, and Keynesian theory, which explain the aspects of unemployment and economic growth. Secondary data was collected and used to illustrate the relationship between the variables, while the methodology used was the Granger causality test and OLS. A unidirectional causal relationship existed linking the two variables, where the lags of economic growth granger cause youth unemployment, and the coefficient between the two variables was positive. Hence Okun's law coefficient didn't apply when it comes to youth unemployment as opposed to the overall unemployment. However, the coefficient was statistically significant.
{"title":"Relationship between Youth Unemployment and Economic Growth in Kenya","authors":"Mutua Daniel Katumo, James N. Maingi","doi":"10.13189/aeb.2020.080501","DOIUrl":"https://doi.org/10.13189/aeb.2020.080501","url":null,"abstract":"Youth employment opportunities have been the priority by the Kenyan Government over the past years, and various policies have been implemented to assure the employment opportunities growth. Economic growth is reckoned to be essential since a positive growth rate will encourage inward investment and improve revenues, which can be spent on long-term public sector works. However, youth unemployment is a consistent problematic element in Kenya, affecting the economy to a large extent. The general objective of this study is to examine the relationship between youth unemployment and economic growth in Kenya. The specific objectives of the study are to investigate the causal relationship between youth unemployment and economic growth in Kenya and to analyze the effect of economic growth on youth unemployment in Kenya. The theories studied include the theory of surplus-value, Solow-swan model, Okun's law, and Keynesian theory, which explain the aspects of unemployment and economic growth. Secondary data was collected and used to illustrate the relationship between the variables, while the methodology used was the Granger causality test and OLS. A unidirectional causal relationship existed linking the two variables, where the lags of economic growth granger cause youth unemployment, and the coefficient between the two variables was positive. Hence Okun's law coefficient didn't apply when it comes to youth unemployment as opposed to the overall unemployment. However, the coefficient was statistically significant.","PeriodicalId":91438,"journal":{"name":"Advances in economics and business","volume":"8 1","pages":"255-267"},"PeriodicalIF":0.0,"publicationDate":"2020-09-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"45901733","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: 10.13189/aeb.2020.080504
Peter Mikek
Latin America has experienced a trend of substantial reduction in inequality over last few decades. We investigate the effects of rapid development of financial sector on inequality in the region. In particular, we estimate a panel with country fixed effects based on a newly compiled dataset for time period of 1990 – 2017. First, the main finding is that financial deepening has exacerbated income inequality on the continent during studied period indicating skewed distribution of benefits of this development across population. The reasons vary from relatively limited education (including low literacy rates), low collateral, demographic and geographic characteristics, and lack of tacit knowledge pertaining to access to financial services. Second, educational attainment seems to be a major contributor to lowering Gini coefficients. The countries in the region on average added about 3 years to education during this period and estimates suggest reduction of Gini coefficients of about 0.7 percentage points per additional year of schooling. Third, as expected, aggregate income level and its growth seem to significantly contribute to reduction of inequality in Latin America. In contrast, poverty rates are associated with worsening of income gap. Fourth, we found no evidence of a traditional Kuznetz curve for Latin America in this dataset. Finally, while exports seem to be neutral, FDI through raising high skill premia and taxes through low efficiency of public services aggravate inequality.
{"title":"Does Financial Development Improve Income Inequality in Latin America?","authors":"Peter Mikek","doi":"10.13189/aeb.2020.080504","DOIUrl":"https://doi.org/10.13189/aeb.2020.080504","url":null,"abstract":"Latin America has experienced a trend of substantial reduction in inequality over last few decades. We investigate the effects of rapid development of financial sector on inequality in the region. In particular, we estimate a panel with country fixed effects based on a newly compiled dataset for time period of 1990 – 2017. First, the main finding is that financial deepening has exacerbated income inequality on the continent during studied period indicating skewed distribution of benefits of this development across population. The reasons vary from relatively limited education (including low literacy rates), low collateral, demographic and geographic characteristics, and lack of tacit knowledge pertaining to access to financial services. Second, educational attainment seems to be a major contributor to lowering Gini coefficients. The countries in the region on average added about 3 years to education during this period and estimates suggest reduction of Gini coefficients of about 0.7 percentage points per additional year of schooling. Third, as expected, aggregate income level and its growth seem to significantly contribute to reduction of inequality in Latin America. In contrast, poverty rates are associated with worsening of income gap. Fourth, we found no evidence of a traditional Kuznetz curve for Latin America in this dataset. Finally, while exports seem to be neutral, FDI through raising high skill premia and taxes through low efficiency of public services aggravate inequality.","PeriodicalId":91438,"journal":{"name":"Advances in economics and business","volume":"8 1","pages":"294-302"},"PeriodicalIF":0.0,"publicationDate":"2020-09-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"46534854","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 : 2020-07-01DOI: 10.13189/aeb.2020.080401
Ping Hua
The Chinese real manufacturing value added increased at a higher growth rate (17% per year on average) during the strong depreciation period of the renminbi from 1984 to 1993 than that (10%) during the period of the strong appreciation from 1994 to 2016. On contrary, its productivity growth accelerated at an annual average rate of 9.7% during the real appreciation period relative to 3.6% during the real depreciation period. This paper originally argues that real appreciation of exchange rate may improve manufacturing productivity (rarely studied), mitigating its traditional negative effects; its total effect is thus uncertain; only an empirical investigation can reveal it. We propose a manufacturing value added function augmented of real exchange rate able to estimate these two kinds of effects. To this objective, we calculate three renminbi real exchange rates for the Chinese manufacturing at macro, product and sector levels. The obtained results confirm that the renminbi real appreciation exerted traditional negative effects on the size of tradable sector and employment, but positive effects on capital intensity, efficiency improvement of workers and staffs and competitiveness via Schumpeterian “creative destruction,” innovation and high technology industries. The positive effects on manufacturing value added are however still too small to offset the negative ones. These results suggest that China should gradually revalue the renminbi in function of manufacturing productivity improvement to avoid the serious deceleration of manufacturing industry when its negative impacts on the size of tradable sector, resource allocation to non-tradable sector and employment are superior to positive effects of productivity improvement.
{"title":"Real Exchange Rates and Manufacturing Industry in China","authors":"Ping Hua","doi":"10.13189/aeb.2020.080401","DOIUrl":"https://doi.org/10.13189/aeb.2020.080401","url":null,"abstract":"The Chinese real manufacturing value added increased at a higher growth rate (17% per year on average) during the strong depreciation period of the renminbi from 1984 to 1993 than that (10%) during the period of the strong appreciation from 1994 to 2016. On contrary, its productivity growth accelerated at an annual average rate of 9.7% during the real appreciation period relative to 3.6% during the real depreciation period. This paper originally argues that real appreciation of exchange rate may improve manufacturing productivity (rarely studied), mitigating its traditional negative effects; its total effect is thus uncertain; only an empirical investigation can reveal it. We propose a manufacturing value added function augmented of real exchange rate able to estimate these two kinds of effects. To this objective, we calculate three renminbi real exchange rates for the Chinese manufacturing at macro, product and sector levels. The obtained results confirm that the renminbi real appreciation exerted traditional negative effects on the size of tradable sector and employment, but positive effects on capital intensity, efficiency improvement of workers and staffs and competitiveness via Schumpeterian “creative destruction,” innovation and high technology industries. The positive effects on manufacturing value added are however still too small to offset the negative ones. These results suggest that China should gradually revalue the renminbi in function of manufacturing productivity improvement to avoid the serious deceleration of manufacturing industry when its negative impacts on the size of tradable sector, resource allocation to non-tradable sector and employment are superior to positive effects of productivity improvement.","PeriodicalId":91438,"journal":{"name":"Advances in economics and business","volume":"8 1","pages":"193-204"},"PeriodicalIF":0.0,"publicationDate":"2020-07-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"41662194","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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