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Open Access
Article
Publication date: 16 September 2021

Amna Zardoub and Faouzi Sboui

Globalization occupies a central research activity and remains an increasingly controversial phenomenon in economics. This phenomenon corresponds to a subject that can be…

5289

Abstract

Purpose

Globalization occupies a central research activity and remains an increasingly controversial phenomenon in economics. This phenomenon corresponds to a subject that can be criticized through its impact on national economies. On the other hand, the world economy is evolving in a liberalized environment in which foreign direct investment plays a fundamental role in the economic development of each country. The advent of financial flows – FDI, remittances and official development assistance – can be a key factor in the development of the economy. The subject of this article is to analyses the effect of financial flows on economic growth in developing countries. Empirically, different approaches have been employed. As part of this work, an attempt was made to use a panel data approach. The results indicate ambiguous effects and confirm the results of previous work.

Design/methodology/approach

The authors seek to study the effect of foreign direct investment, remittances and official development assistance (ODA) and some control variables i.e. domestic credit, life expectancy, gross fixed capital formation (GFCF), inflation and three institutional factors on economic growth in developing countries by adopting the panel data methodology. Then, the authors will discuss empirical tests to assess the econometric relevance of the model specification before presenting the analysis of the results and their interpretations that lead to economic policy implications. As part of this work, the authors have rolled panel data for developing countries at an annual frequency during the period from 1990 to 2016. In a first stage of empirical analysis, the authors will carry out a technical study of the heterogeneity test of the individual fixed effects of the countries. This kind of analysis makes it possible to identify the problems retained in the specific choice of econometric modeling to be undertaken in the specificities of the panel data.

Findings

The empirical results validate the hypotheses put forward and indicate the evidence of an ambiguous effect of financial flows on economic growth. The empirical findings from this analysis suggest the use of economic-type solutions to resolve some of the shortcomings encountered in terms of unexpected effects. Governments in these countries should improve the business environment by establishing a framework that further encourages domestic and foreign investment.

Originality/value

In this article, the authors adopt the panel data to study the links between financial flows and economic growth. The authors considered four groups of countries by income.

Details

PSU Research Review, vol. 7 no. 2
Type: Research Article
ISSN: 2399-1747

Keywords

Open Access
Article
Publication date: 22 February 2024

Katsutoshi Fushimi

Prior institutional duality research asserts that ceremonial implementation of organisational practice protects multinational corporations’ subsidiaries. However, the temporal…

Abstract

Purpose

Prior institutional duality research asserts that ceremonial implementation of organisational practice protects multinational corporations’ subsidiaries. However, the temporal dynamics of the safeguarding function has been under researched. Public sector organisations have also been ignored. This research aims to explore how the safeguarding function is created, maintained and disrupted using the overseas offices (OOs) of a bilateral development agency (BDA) as a case.

Design/methodology/approach

A multi-case study, underpinned by neo-institutionalism, was conducted. Data obtained from in-depth remote interviews with 39 informants from the BDA OOs were analysed using the “asking small and large questions” technique, four analytical techniques, cross-case synthesis and theoretical propositions.

Findings

A three-phase process was identified. The first phase is the appearance of discrepancies due to institutional duality. The second is the emergence of ceremonial implementation as a solution. In the third phase, “the creation, maintenance and disruption of a safeguarding function” begins. When ceremonial implementation successfully protects the OOs, the safeguarding function is created. The OOs are likely to repeat ceremonial implementation, thus sustaining the function. Meanwhile, when conditions such as management staff change, ceremonial implementation may not take place, and the safeguarding function disappears.

Research limitations/implications

The BDA OOs may not face strong host country regulative pressures because they are donors to aid-recipient countries. Hence, the findings may not directly apply to other public sector organisations.

Practical implications

Development cooperation practitioners should understand that ceremonial implementation is not exclusively harmful.

Originality/value

To the best of the author’s knowledge, this is the first institutional duality research that explores the temporal dynamics of safeguarding functions targeting public sector organisations.

Details

International Journal of Organizational Analysis, vol. 32 no. 11
Type: Research Article
ISSN: 1934-8835

Keywords

Open Access
Article
Publication date: 15 June 2021

Amna Zardoub

Globalization occupies a central research activity and remains an increasingly controversial phenomenon in economics. This phenomenon corresponds to a subject that can be…

2895

Abstract

Purpose

Globalization occupies a central research activity and remains an increasingly controversial phenomenon in economics. This phenomenon corresponds to a subject that can be criticized through its impact on national economies. On the other hand, the world economy is evolving in a liberalized environment in which foreign direct investment plays a fundamental role in the economic development of each country. The advent of financial flows – foreign direct investment, remittances and official development assistance – can be a key factor in the development of the economy. The purpose of this study is to analyze the effect of financial flows on economic growth in developing countries. Empirically, different approaches have been used. As part of this study, an attempt was made to use a combined autoregressive distributed lag (ARDL) panel approach to study the short-term and long-run effects of financial flows on economic growth. The results indicate ambiguous effects. Economically, the effect of financial flows on economic growth depends on the investor’s expectations.

Design/methodology/approach

To study the short-run and long-run effects of financial flows on economic growth, this paper considers an empirical approach based on the panel ARDL. This model makes it possible to distinguish between the short-run effect and the long-run one. This type of model is based on three estimators, namely, mean group, pooled mean group (PMG) and dynamic fixed effect.

Findings

Results confirm the existence of a long-run relationship because the adjustment coefficient (error correction parameter) is negative and statistically significant. This paper finds that the PMG estimator is more consistent and more efficient. In the short-run, foreign direct investment do negatively affect economic growth, the effect is no significant in the long-run. On the other hand, the effect of remittances on economic growth is significant in the short-run. However, it is no significant in the long-run. Finally, the results suggest that the effect of official development assistance on economic growth is insignificant; both in the long-run and in the short-run.

Originality/value

To study the interaction between financial flows and economic growth, some empirical methodology are used such as the dynamic panel data and the autoregressive vector (VAR) model. In this study, we apply the panel ARDL model to analyze the short-run and the long-run effect for each financial flow on economic growth. The objective is to study the heterogeneity on dynamic adjustment in the short-term and long-term.

Open Access
Article
Publication date: 26 May 2023

Beatrice D. Simo-Kengne and Siphiwo Bitterhout

The theoretical debate of corruption's impact on economic growth remains unsettled, making it an empirical question. This study aims to investigate corruption's effect on BRICS…

1710

Abstract

Purpose

The theoretical debate of corruption's impact on economic growth remains unsettled, making it an empirical question. This study aims to investigate corruption's effect on BRICS countries' economic growth.

Design/methodology/approach

A panel dataset on BRICS countries spanning 1996 to 2020 was used. Bias-corrected estimators in small dynamic panels were employed to estimate a growth model as a linear-quadratic function of corruption that accounts for cross-sectional dependence, endogeneity and unobserved heterogeneity due to country and time-specific characteristics.

Findings

The results indicate that corruption is detrimental to economic growth in BRICS countries; the quadratic relationship implies corruption is less prevalent in some countries than others. Thus, governments of BRICS countries are encouraged to embark on anti-corruption policies to boost their economic performance.

Originality/value

An important limitation of corruption studies is the difficulty in measuring real corruption experiences due to the secretive nature of corruption and the fact that corruption is known not to leave a paper trail. For the uncertainty of the index estimates, the analysis used a continuous corruption composite score measuring the standard deviation of the extent to which public power is exercised for public gain. Furthermore, estimation and inference are robust to small dynamic panels with a general form of cross-sectional dependence.

Details

Journal of Economics, Finance and Administrative Science, vol. 28 no. 56
Type: Research Article
ISSN: 2077-1886

Keywords

Content available
Article
Publication date: 1 December 2001

34

Abstract

Details

Disaster Prevention and Management: An International Journal, vol. 10 no. 5
Type: Research Article
ISSN: 0965-3562

Open Access
Article
Publication date: 15 June 2021

Claudia Paciarotti, Wojciech D. Piotrowicz and George Fenton

The paper is focused on standards in humanitarian logistics and supply chain. Standards, implemented between organisations, allow improving the interoperability of humanitarian…

13757

Abstract

Purpose

The paper is focused on standards in humanitarian logistics and supply chain. Standards, implemented between organisations, allow improving the interoperability of humanitarian operations. The paper aims (1) to review a state-of-the-art approach to the topic by the academic community, (2) to evaluate the current use of standards among humanitarian organisations and (3) to investigate the perceived need for further and specific standards.

Design/methodology/approach

To achieve the aims, the literature was reviewed; then a survey on 227 professionals from the humanitarian logistics sector was conducted.

Findings

Based on 227 responses, it is possible to conclude that most surveyed professionals recognise the need for and the importance of standardisation in humanitarian logistics, especially in areas such as procurement, distribution, medical logistics and logistics planning, which were perceived as critical areas that require standardisation.

Research limitations/implications

Practitioners and scholars were targeted via social media, through mailing lists and via communication from the practitioner organisation – the Humanitarian Logistics Association (HLA). While it provided good access to different groups of respondents, the response rate is not possible to calculate.

Practical implications

The findings confirm the high importance of standardisation, indicating areas and functions that should be standardised first. Standardisation may improve cooperation between different humanitarian actors, allowing better service provision for beneficiaries. Thus there are also potential negative impacts, i.e. impact on localisation, which should be overcome.

Social implications

Results do not have a direct social impact; however, they stimulate research and work among practitioners on standardisation, which in turn could improve cooperation between humanitarian actors, thereby enabling a better humanitarian response in emergencies.

Originality/value

The majority of papers on standardisation use a qualitative approach. This paper applies a survey among a large network of humanitarian practitioners, capturing their view on the topic and perception of the need for standardisation. The work is descriptive; however, it could be used as a base for further studies related to humanitarian standards.

Details

Journal of Humanitarian Logistics and Supply Chain Management, vol. 11 no. 3
Type: Research Article
ISSN: 2042-6747

Keywords

Open Access
Article
Publication date: 19 July 2022

Min Ye

The new century has witnessed rapid growth in China's foreign aid. However, there is still yet any consensus about the nature or the consequences of China's foreign aid. In this…

2231

Abstract

Purpose

The new century has witnessed rapid growth in China's foreign aid. However, there is still yet any consensus about the nature or the consequences of China's foreign aid. In this study, the author reviews the history of China's foreign aid and finds significant changes in China's foreign aid policy in the past seven decades.

Design/methodology/approach

The author analyzes China's foreign aid data between 2000 and 2017 from the AidData program with a Tobit model.

Findings

This study’s results show both the similarities and differences between China and Western donors. These “Chinese characteristics” in its foreign aid, we argue, illustrate China's dual identity in the new century: both the largest developing country that minds its own economic development and an emerging global power that aspires to elevate its global status and enhance its soft power.

Originality/value

This article is, to the author’s knowledge, one of the first comprehensive empirical analysis of China's foreign aid using the data from AidData program. It will enrich our understanding of the nature and consequences of China's foreign aid in the new century.

Details

International Trade, Politics and Development, vol. 6 no. 2
Type: Research Article
ISSN: 2586-3932

Keywords

Open Access
Article
Publication date: 28 July 2020

Sima Rani Dey and Mohammad Tareque

This study aims to examine the impact of external debt on economic growth in Bangladesh within a broader macroeconomic scenario.

7424

Abstract

Purpose

This study aims to examine the impact of external debt on economic growth in Bangladesh within a broader macroeconomic scenario.

Design/methodology/approach

In the process of doing so, it assesses the empirical cointegration, long-run and short-run dynamics of the concerned variables for the period of 1980–2017 applying the autoregressive distributed lag (ARDL) bounds testing approach to cointegration. First, debt-gross domestic product linkage explores the impact of external debt impact on economic growth using a set of macro and country risk variables, and then this linkage is also analyzed along with a newly formed macroeconomic policy (MEP) variable using principal component analysis.

Findings

The study results reveal the negative impact of external debt on GDP growth, but the larger positive impact of MEP index indicates that this adverse effect of debt can be mitigated or even nullified by sound MEP and appropriate human resource policy.

Originality/value

The dynamic effects of different shocks (external debt and macro policy variable) on economic growth by vector autoregression impulse response function also confirm our ARDL findings.

Details

Journal of Economics, Finance and Administrative Science, vol. 25 no. 50
Type: Research Article
ISSN: 2077-1886

Keywords

Abstract

Details

Obsessive Measurement Disorder or Pragmatic Bureaucracy?
Type: Book
ISBN: 978-1-80117-377-3

Open Access
Article
Publication date: 28 November 2023

Qian Qin

This research explores the intricate dynamics of national interests realised through Japan's official development assistance (ODA) to China. It aims to deepen the understanding of…

Abstract

Purpose

This research explores the intricate dynamics of national interests realised through Japan's official development assistance (ODA) to China. It aims to deepen the understanding of these mechanisms, detailing the extent to which Japan has accomplished its national interests.

Design/methodology/approach

The paper applies the role theory and narrative analysis to elucidate Japan's national role conception and its categories of national interests with regards to its ODA policy. It utilises both qualitative and quantitative methods to examine the success rate in achieving Japan's diplomatic objectives and how those interests have manifested over time.

Findings

The findings suggest a mixed outcome. Whilst Japan's ODA to China has helped in expanding trade and fostering mutual understanding and cooperation, it has been less successful in promoting democratic governance in China or effectively counterbalancing China's regional power. Hence, the realisation of national interests through ODA is a complex process contingent upon numerous factors.

Originality/value

This study stands out for its multifaceted approach in examining Japan's ODA policy towards China, integrating both quantitative and qualitative methodologies and applying the role theory in the context of international development aid. It fills a significant gap in the literature by analysing the interplay between national interests and foreign aid, providing nuanced insights into the successes and challenges of Japan's pursuit of its diplomatic objectives. The study's findings have important implications for understanding the complexity of international aid dynamics and can inform future policy decisions in the realm of international relations and foreign aid.

Details

International Trade, Politics and Development, vol. 8 no. 1
Type: Research Article
ISSN: 2586-3932

Keywords

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