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Article
Publication date: 1 February 1981

The‐Hiep Nguyen

The controversial Prebisch thesis in international economics of development asserts that (i) less‐developed countries (LDCs) experience a long‐run deterioration in their terms of

Abstract

The controversial Prebisch thesis in international economics of development asserts that (i) less‐developed countries (LDCs) experience a long‐run deterioration in their terms of trade with developed countries (DCs), and (ii) these experiences are the cause of the ever‐widening gap in their per capita incomes with DCs. By surveying the controversy and discussing the connection between trends in terms of trade and international economic inequality, this paper attempts to disprove some widely held notions derived from misinterpretations and from broad generalisations with indirect inferences. We conclude that there is need for case studies; in order to evaluate and select appropriate policy options.

Details

Journal of Economic Studies, vol. 8 no. 2
Type: Research Article
ISSN: 0144-3585

Abstract

Details

Environmental Taxation and the Double Dividend
Type: Book
ISBN: 978-1-84950-848-3

Article
Publication date: 18 January 2021

Syed Tehseen Jawaid, Mariya Ahmad Qureshi and Samra Ali

This study aims to motivate the reality that experiential investigation of immiserizing growth has not been performed at large. The key objective of the study is to analyse the…

Abstract

Purpose

This study aims to motivate the reality that experiential investigation of immiserizing growth has not been performed at large. The key objective of the study is to analyse the empirical existence of immiserizing growth in the real world.

Design/methodology/approach

Theory of revealed preferences has been implemented for welfare movement by using Laspeyres and Paasche quantity index and for empirical estimations, logistic regression has been applied. The study established panel data of the world’s largest trading nations, including the USA, China, France, Germany, UK, Italy, Japan, the Netherland and Canada. Annual time series data for an extensive time period covering from 1981 till 2017 have been used.

Findings

Findings of the Laspeyres and Paasche index reveal that out of nine countries immiserizing growth prevails in five nations and those are Italy, Canada, the Netherland, UK and Japan. The results of panel logistic regression verify the significance of terms of trade on immiserizing growth in all included countries. Separate logistic regression has also been performed on all the five countries from which Italy, Canada, the Netherland exhibit significant results.

Originality/value

This study is a pioneer attempt towards the concept of immiserizing growth. Considering the fact that immiserizing growth is viewed by the majority of the scholars as a theoretical notion, this study attempts to investigate analytically the existence of immiserizing growth with real data set. The impact of terms of trade deterioration on the welfare of the world’s largest trading nations has been focused on the research which is in compliance with the concept of Bhagwati (1958).

Details

Journal of Chinese Economic and Foreign Trade Studies, vol. 14 no. 2
Type: Research Article
ISSN: 1754-4408

Keywords

Article
Publication date: 1 January 1978

The Equal Pay Act 1970 (which came into operation on 29 December 1975) provides for an “equality clause” to be written into all contracts of employment. S.1(2) (a) of the 1970 Act…

1363

Abstract

The Equal Pay Act 1970 (which came into operation on 29 December 1975) provides for an “equality clause” to be written into all contracts of employment. S.1(2) (a) of the 1970 Act (which has been amended by the Sex Discrimination Act 1975) provides:

Details

Managerial Law, vol. 21 no. 1
Type: Research Article
ISSN: 0309-0558

Article
Publication date: 27 July 2012

Abdulnasser Hatemi‐J and Manuchehr Irandoust

In the literature on the effects of economic globalization, the compensation hypothesis suggests that there is a positive link between government size and external risk as…

796

Abstract

Purpose

In the literature on the effects of economic globalization, the compensation hypothesis suggests that there is a positive link between government size and external risk as governments perform a risk mitigating role to insure against productivity shocks through transfers. In contrast, the conventional wisdom hypothesis states that more openness will lower tax rates and lead to smaller government due to increased international factor mobility which undermines the ability of governments to tax. The purpose of this paper is to test the literature and present the authors' conclusions.

Design/methodology/approach

Using time series data for the USA, Canada, Japan and Australia over the period 1960‐2008, the authors test the asymmetric relationship between government size and terms‐of‐trade volatility by applying multivariate hidden cointegration analysis.

Findings

The findings show that high terms of trade volatility are positively related to government spending in the all sample countries. The effect is stronger in the case of positive movements than negative ones.

Practical implications

The policy implication is that the size of the public sector might play a risk‐reducing role in economies with significant amounts of external risk. In particular, public expenditure is considered to be an important fiscal policy instrument when terms of trade volatility are high.

Originality/value

The paper describes the first study of its kind.

Article
Publication date: 1 December 1995

Janardhanan Als and Mohsen Bahmani‐Oskooee

Attempts to shed new light on the relation between the terms oftrade and effective exchange rate using cointegration analysis and datafrom 25 countries. Findings could be…

1320

Abstract

Attempts to shed new light on the relation between the terms of trade and effective exchange rate using cointegration analysis and data from 25 countries. Findings could be summarized by saying that there is no long‐run relation between exchange rate and the terms of trade.

Details

Journal of Economic Studies, vol. 22 no. 6
Type: Research Article
ISSN: 0144-3585

Keywords

Article
Publication date: 6 May 2020

Moumita Basu and Ranjanendra Narayan Nag

This is a theoretical paper in the field of structuralist macroeconomics. The paper focuses on commodity price fluctuation which has emerged as one of the major macroeconomic…

Abstract

Purpose

This is a theoretical paper in the field of structuralist macroeconomics. The paper focuses on commodity price fluctuation which has emerged as one of the major macroeconomic factors with significant bearing on the relationship between the agricultural and nonagricultural sectors.

Design/methodology/approach

The paper develops a dual economy model consisting of an agricultural sector and an industrial sector. The commodity price is subject to the fluctuations due to the fact that stock of primary goods is an asset which is sensitive to speculations. The paper considers a standard methodology of dynamic adjustment process involving change in stock of agricultural goods and price of agricultural goods under perfect foresight. The saddle path properties of the equilibrium are also examined.

Findings

The paper shows that the balanced budget fiscal expansion, capital account liberalization and the agricultural expansion lead to expansion of the industrial sector as well as level of employment. The increase in world interest rate may lead to contraction of the industrial sector and depress employment.

Originality/value

We will consider the openness of the economy in explaining how different macroeconomic policies and capital account liberalization generate multiple cross effects on the inter-connectedness between agricultural and the non-agricultural sector. The paper will discuss the issue of employment generation in conjunction with commodity price fluctuation. We depart from the literature by using Taylor rule under which interest rate is fixed by the Central Bank such that money supply becomes endogenous.

Details

Journal of Economic Studies, vol. 47 no. 6
Type: Research Article
ISSN: 0144-3585

Keywords

Book part
Publication date: 2 June 2008

Ulrich Kohli

Nearly all international trade takes place in middle products, rather than in finished goods as it is assumed in most models of international trade theory. Recognition of this…

Abstract

Nearly all international trade takes place in middle products, rather than in finished goods as it is assumed in most models of international trade theory. Recognition of this fact has some far-reaching consequences for the measurement of real value added, real domestic income, and productivity, and it brings forward the role of a number of related, yet distinct, key price ratios: the terms of trade, the real exchange rate, and the trading gains. Production theory, rather than consumer theory, is therefore the appropriate setting for analyzing issues such as openness, trade imbalances, and income distribution.

Details

Contemporary and Emerging Issues in Trade Theory and Policy
Type: Book
ISBN: 978-1-84950-541-3

Keywords

Book part
Publication date: 1 October 2008

Eric W. Bond and Constantinos Syropoulos

Purpose – This chapter examines how preferential liberalization between a pair of countries affects the terms of trade and welfare of the liberalizing countries and on the rest of…

Abstract

Purpose – This chapter examines how preferential liberalization between a pair of countries affects the terms of trade and welfare of the liberalizing countries and on the rest of the world (ROW). We adopt a model with symmetric countries that generalizes previous work by relaxing assumptions on functional forms, which allows for the possibility that exports of member countries are complements for exports of the ROW.

Methodology/approach – This chapter uses general equilibrium welfare analysis for a three-country trade model.

Findings – We show that Kemp–Wan tariff adjustments require a decrease (increase) in the external tariff of members in a preferential trade agreement to accompany internal liberalization in the neighborhood of internal free trade when member goods are substitutes (complements) for non-member goods. However, the adjustment path of the external tariff to reductions in the internal tariff could be non-monotonic when preferences are not of the CES type.

Practical implications – Our results are of interest for the design of rules for multilateral trade agreements with respect to preferential liberalization, since they indicate how tariffs must be adjusted to eliminate negative impacts on non-member countries.

Details

Globalization and Emerging Issues in Trade Theory and Policy
Type: Book
ISBN: 978-1-84663-963-0

Keywords

Article
Publication date: 27 March 2009

Matthew Kofi Ocran and Charles K.D. Adjasi

Drawing first on stylised facts, the purpose of this paper is to isolate the impact of trade liberalisation policies pursued for the past two decades on poverty in agricultural…

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Abstract

Purpose

Drawing first on stylised facts, the purpose of this paper is to isolate the impact of trade liberalisation policies pursued for the past two decades on poverty in agricultural households in Ghana.

Design/methodology/approach

Two samples of agricultural households are drawn from the most recently published Ghana Living Standards Survey. Using terms of trade as a channel of the reforms, an econometric estimate of the impact of terms of trade on per‐capita expenditure, of these agricultural households, is run on both samples using two cross‐sectional models.

Findings

The results suggest that trade liberalisation had an adverse welfare impact on agricultural households immediately after the reforms‐1992; however, trade positively influenced welfare much later‐1999. Even though agricultural producers' terms of trade have improved they still constitute the largest segment of the poor in Ghana.

Research limitations/implications

Targeted trade policy instruments are required to positively impact mainstream agricultural households in poverty alleviation efforts. The absence of repeated cross‐sections in the Living Standards Survey limits the possibility of exploring dynamic effects.

Originality/value

This paper isolates welfare effects of trade on agriculture households in Ghana – a departure from previous studies which examine the effect of trade on all households. This distinction is important since welfare effects of trade in Ghana are more likely to impact households whose livelihoods depend on agriculture than on other households.

Details

Journal of International Trade Law and Policy, vol. 8 no. 1
Type: Research Article
ISSN: 1477-0024

Keywords

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