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Book part
Publication date: 17 August 2011

Biswa Nath Bhattacharyay

Several developing economies witnessed a large number of systemic financial and currency crises since the 1980s that resulted in severe economic, social, and political…

Abstract

Several developing economies witnessed a large number of systemic financial and currency crises since the 1980s that resulted in severe economic, social, and political problems. The devastating impact of the 1982 and 1994–1995 Mexican crises, the 1997–1998 Asian financial crisis, the 1998 Russian crisis, and the ongoing financial crisis of 2008–2009 suggests that maintaining financial sector stability through reduction in vulnerability is highly crucial. The world is now witnessing an unprecedented systemic financial crisis originated from the USA in September 2008 together with a deep worldwide economic recession, particularly in developed countries of Europe and North America. This calls for devising and using on a regular basis an appropriate and effective monitoring and policy formulation system for detecting and addressing vulnerabilities leading to crisis. This chapter proposes a macroprudential/financial soundness monitoring, analysis, and remedial policy formulation system that can be used by most developing countries with or without crisis experience as well as with limited data. It also discusses a process for identifying and compiling a set of leading macroprudential/financial soundness indicators. An empirical illustration using Philippines data is presented. There is an urgent need for increased coordination, collaboration, and partnership among central banks, banking and financial market supervision agencies, and ministries of finance, economic, and planning for proper macroprudential monitoring. A high-level national financial stability committee under the auspices of the head of the state as well as a ‘‘regional financial stability board’’ needs to be established to complement and support the activities of an “international stability board.”

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Article
Publication date: 30 April 2019

Serhan Cevik

With the global financial crisis, the United Arab Emirates (UAE) experienced its own unraveling of macro-financial imbalances and thus presents an interesting case to…

Abstract

Purpose

With the global financial crisis, the United Arab Emirates (UAE) experienced its own unraveling of macro-financial imbalances and thus presents an interesting case to analyze the underlying fragilities in federal governments. The purpose of this paper is to investigate the evolution of fiscal policy in the UAE at consolidated and subnational levels in the run-up and after the crisis, and provide pertinent insights about the importance of policy coordination in other federal fiscal systems – and monetary unions, as brought to light by the recent developments in Europe.

Design/methodology/approach

In measuring the cyclicality of fiscal balances at the consolidated and emirate level in the UAE, this paper uses the non-hydrocarbon primary budget balance, excluding interest spending and hydrocarbon revenues, investment income of the sovereign wealth fund, scaled by non-hydrocarbon GDP. The cyclically adjusted primary balance is estimated by deducting cyclical components from the actual balance. It is important to correct for cyclical changes because the budget balance tends to vary endogenously according the state of the economy – deteriorating during a bust and improving in a boom. Furthermore, since hydrocarbon revenues are dependent on the erratic behavior of hydrocarbon prices, the cyclically adjusted non-hydrocarbon primary balance is computed, using the elasticity of non-hydrocarbon revenues and primary expenditures relative to non-hydrocarbon GDP, to assess whether fiscal policy exacerbates economic fluctuations in the UAE at the aggregate and emirate levels.

Findings

The empirical findings show that procyclical fiscal policies prior to the crisis reinforced the financial sector cycle, exacerbated the economic upswing, and thereby contributed to the build-up of macro-financial vulnerabilities. The paper also sets out policy lessons to develop a rule-based fiscal framework that would help strengthen fiscal policy coordination between the various layers of government and ensure long-term fiscal sustainability and a more equitable intergenerational distribution of wealth.

Originality/value

The lack of fiscal policy coordination among subnational governments complicates macro-economic management at the federal level. Since the UAE has a pegged exchange rate regime and consequently a limited scope to use monetary policy, the burden of macro-economic stabilization falls on fiscal policy. Accordingly, this paper shows that procyclical fiscal policies prior to the crisis reinforced the “financial accelerator” effect, exacerbated the economic cycle, and thereby contributed to the build-up of economic and financial vulnerabilities in the UAE.

Details

International Journal of Emerging Markets, vol. 14 no. 5
Type: Research Article
ISSN: 1746-8809

Keywords

Content available
Article
Publication date: 5 November 2020

Mette Ranta, Gintautas Silinskas and Terhi-Anna Wilska

This study focuses on how young adults face the COVID-19 pandemic by investigating their personal concerns about mental well-being, career/studies and economic situation…

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1150

Abstract

Purpose

This study focuses on how young adults face the COVID-19 pandemic by investigating their personal concerns about mental well-being, career/studies and economic situation. The authors investigated how young adults' (aged 18–29) personal concerns differ from older people's concerns (aged 30–65) and which person- and context-related antecedents relate to personal concerns.

Design/methodology/approach

Data of Finnish young adults aged 18–29 (n = 222), who participated in the “Corona Consumers” survey (N = 1,000) in April 2020, were analyzed by path analysis and compared to participants aged 30–65 by independent samples t-test.

Findings

Young adults were significantly more concerned about the effects of the COVID-19 pandemic on their mental well-being, career/studies and economic situation than older people. Females were more concerned about their mental well-being than males. Among youth, lower life satisfaction was related to concerns about mental well-being, and lower satisfaction with financial situation was related to concerns about career/studies and economic situation. Young adults' predisposition to avoid difficult situations was related to more frequent concerns in all domains, whereas generalized trust and education were not.

Research limitations/implications

Due to cross-sectional data, causal COVID-19 interpretations should be made cautiously.

Practical implications

Strong youth policies are needed for youth empowerment, mental health and career advancement in the pandemic aftermath.

Originality/value

The study highlights the inequality of the effects of COVID-19: The pandemic has radically influenced young adults as they exhibit significant personal concerns in age-related life domains.

Details

International Journal of Sociology and Social Policy, vol. 40 no. 9/10
Type: Research Article
ISSN: 0144-333X

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Article
Publication date: 11 July 2016

Ulla Pape, Rafael Chaves-Ávila, Joachim Benedikt Pahl, Francesca Petrella, Bartosz Pieliński and Teresa Savall-Morera

The context conditions for third sector organizations (TSOs) in Europe have significantly changed as a result of the global economic crisis, including decreasing levels of…

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1100

Abstract

Purpose

The context conditions for third sector organizations (TSOs) in Europe have significantly changed as a result of the global economic crisis, including decreasing levels of public funding and changing modes of relations with the state. The effect of economic recession, however, varies across Europe. The purpose of this paper is to understand why this is the case. It analyses the impact of economic recession and related policy changes on third sector development in Europe. The economic effects on TSOs are thereby placed into a broader context of changing third sector policies and welfare state restructuring.

Design/methodology/approach

The paper focusses on two research questions: how has the changing policy environment affected the development of the third sector? And what kind of strategies have TSOs adopted to respond to these changes? The paper first investigates general trends in Europe, based on a conceptual model that focusses on economic recession and austerity policies with regard to the third sector. In a second step of analysis, the paper provides five country case studies that exemplify policy changes and responses from the third sector in France, Germany, the Netherlands, Poland and Spain.

Findings

The paper argues that three different development paths can be identified across Europe. In some countries (France and Spain), TSOs face a strong effect of economic recession. In other countries (Germany and Poland) the development of the third sector remains largely stable, albeit at different levels, whereas in the Netherlands, TSOs rather experience changes in the policy environment than a direct impact of economic decline. The paper also shows that response strategies of the third sector in Europe depend on the context conditions. The paper is based on the European project “Third Sector Impact.” It combines an analysis of statistical information with qualitative data from interviews with third sector representatives.

Originality/value

The paper contributes to our understanding of the interrelation between economic recession, long-term policy changes and third sector development in Europe.

Details

International Journal of Sociology and Social Policy, vol. 36 no. 7/8
Type: Research Article
ISSN: 0144-333X

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Article
Publication date: 14 September 2015

Cosimo Magazzino, Francesco Felici and Vanja Bozic

The purpose of this paper is to investigate the information content of the variables that can help detecting external and internal imbalances in an early stage. The…

Abstract

Purpose

The purpose of this paper is to investigate the information content of the variables that can help detecting external and internal imbalances in an early stage. The starting point is the Scoreboard, where nine indicators are chosen in order to increase macroeconomic surveillance of all member states.

Design/methodology/approach

This paper provides an overview of the variables that could be informative for imbalances by focusing on EU-27 countries over the period 1960-2010. The number of chosen variables is 28, and they are aggregated in six macro-areas. Therefore, once an imbalance is observed in any of those areas, it is possible to detect in a simple way which specific variable is determining such outcome.

Findings

In general, this approach provides reliable signal to the policy-makers about the indicators that can drive imbalances within the area, shedding light on the relationship among the variables included in the analysis, too.

Research limitations/implications

In fact, the empirical results underline some well-known critical issue for several countries, and is largely in line with results obtained in a variety of EC and OECD studies.

Originality/value

The main added value of the approach adopted in this paper is the introduction of more variables than those initially proposed by the European Commission in the construction of the Scoreboard. This provides more information about the macroeconomic situation in each country, preserving, however, the simplicity of the analysis as the variables are aggregated by homogeneous areas.

Details

Journal of Economic Studies, vol. 42 no. 4
Type: Research Article
ISSN: 0144-3585

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Book part
Publication date: 13 April 2015

Uchenna R. Efobi

This study aims at establishing a linkage between IFRS adoption and environmental pollution in Africa. More so, the role of institution was emphasized as a possible…

Abstract

Purpose

This study aims at establishing a linkage between IFRS adoption and environmental pollution in Africa. More so, the role of institution was emphasized as a possible ameliorator of environmental pollution in the face of IFRS adoption.

Methodology/approach

The empirical model builds on the traditional EKC hypothesis, by including IFRS adoption variable and an interaction term (which captures the multiplicative between IFRS adoption and institutions). Data was gathered for 47 African countries for the period 2001–2013. The SGMM technique was used in the estimation process.

Findings

The robust estimation reveals that a positive and significant linkage exist between IFRS adoption and environmental pollution. The interactive variable also shows that the effect of IFRS on the environment will reduce when institutions quality (in the form of bureaucratic corruption) is addressed.

Originality

The linkage between IFRS and the environment has not received empirical attention. This is partly due to the fact that accounting phenomenon is rarely linked to macroeconomic outcomes. However, there is a rising interest in the role of accounting institutions on economic outcomes and this study contributes sufficiently to this budding body of knowledge.

Details

Beyond the UN Global Compact: Institutions and Regulations
Type: Book
ISBN: 978-1-78560-558-1

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Expert briefing
Publication date: 24 July 2018

Market sentiment towards Greece.

Details

DOI: 10.1108/OXAN-DB236289

ISSN: 2633-304X

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Geographic
Topical
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Article
Publication date: 1 August 2001

M. Doumpos, K. Pentaraki, C. Zopounidis and C. Agorastos

Explains the importance of assessing country risk to lenders and investors, outlines previous research on techniques for doing this and describes a classification method…

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1022

Abstract

Explains the importance of assessing country risk to lenders and investors, outlines previous research on techniques for doing this and describes a classification method: the multi‐group hierarchical discrimination method (MHD). Applies this to 1978‐1995 data for 143 countries, subdivided into four income groups, and compares the results with those from multiple discriminant, logit and probit analyses using jackknife procedures. Finds MHD more accurate overall and for most income groups except the lower‐middle income economies. Briefly considers other applications for MHD and avenues for further research.

Details

Managerial Finance, vol. 27 no. 8
Type: Research Article
ISSN: 0307-4358

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Article
Publication date: 14 October 2013

Rachel Gabel-Shemueli and Ben Capell

– The purpose of this research is to identify and analyze the core values of the Peruvian public sector in the particular context of recent public management reforms.

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1329

Abstract

Purpose

The purpose of this research is to identify and analyze the core values of the Peruvian public sector in the particular context of recent public management reforms.

Design/methodology/approach

After distinguishing between traditional private and public sector values, the paper compared the presence of each of these types of values in two very different sources of data: input from employees' values survey and formal values statements of Peruvian public sector organizations. The analysis includes both a comparison of the presence of traditional public and private sector values in the two sources of data and the identification of the cultural profile of the public sector of Peru using the tri-axial model.

Findings

The findings indicate a large gap between values at the theoretical level and values at the practical level. While values statements of public organizations in Peru clearly reflect traditional public sector values, in practice, public sector employees appear to follow a mixture of public and private sector values. Strengthening this conclusion is the finding that the cultural tri-axial profile of the sector is purely economic-pragmatic, which suggests that ethical and emotional values are positioned lower on the values hierarchy.

Originality/value

This paper provides the first evidence of two important cultural phenomena in the Peruvian public sector: a broad adoption of private sector values and a gap between the values that are proposed as ethical guidelines (ideal) and the values that are followed in practice (real). The combination of these two phenomena suggests a potential risk to the ethical functioning of the public administration. This risk is especially significant in a developing country like Peru, where many of its poor citizens depend on government support. The paper discusses both the research and practical implications of this study.

Details

Cross Cultural Management, vol. 20 no. 4
Type: Research Article
ISSN: 1352-7606

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Article
Publication date: 11 January 2016

Sena Kimm Gnangnon

The purpose of this paper is to investigate how trade openness affects the structural vulnerability of developing countries. The analysis is conducted on both the entire…

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2547

Abstract

Purpose

The purpose of this paper is to investigate how trade openness affects the structural vulnerability of developing countries. The analysis is conducted on both the entire sample of 105 countries as well as two sub-samples, namely least developed countries (LDCs) and non-LDCs.

Design/methodology/approach

To perform the analysis, the author employs fixed-effects (within) regressions supplemented by instrumental variables technique based on the two-step generalized methods of moments approach.

Findings

The author finds empirical evidence that although trade policy liberalization reduces the structural vulnerability on the entire sample developing countries, no statistically significant effect of such liberalization is obtained either on LDCs or non-LDCs. However, trade policy liberalization appears to reduce countries’ exposure to shocks, result that applies to the entire sample as well as the two sub-samples. The author also observes that trade policy liberalization exerts no (statistically) significant effect on the size of shocks that affect developing countries, result that applies to both the full sample and the sub-samples of LDCs and non-LDCs.

Research limitations/implications

In the absence of a well-established theoretical framework on how trade openness affects the structural vulnerability of developing, the author adopts a pragmatic approach by drawing upon many insights of Loayza and Raddatz (2007) who study the structural determinants of external vulnerability.

Practical implications

Developing countries in general and LDCs in particular could address their structural weaknesses by making optimal use of their trade policies. In particular, they could better use the flexibilities available to them in provisions of the World Trade Organization (WTO)’ Agreements. In this respect, the international community, notably donors of the developed world has a key role to play.

Originality/value

This is the first study exploring how trade openness, capturing here through trade policy liberalization affects the structural vulnerability of developing countries.

Details

Journal of Economic Studies, vol. 43 no. 1
Type: Research Article
ISSN: 0144-3585

Keywords

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