Effect of financial development on economic growth in sub-Saharan Africa

This paper examines the overall economic growth effect when the growth in finance and real sector is disproportionate relying on panel data for 29 sub-Saharan African countries over the period 1980–2014. Results from the system generalized methods of moments (GMM) reveal that, while financial development supports economic growth, the extent to which finance helps growth depends crucially on the simultaneous growth of real and financial sectors. The elasticity of growth to changes in either size of the real or financial sector is higher under balanced sectoral growth. We also show that rapid and unbridled credit growth comes at a huge cost to economic growth with consequences stemming from financing of risky and unsustainable investments coupled with superfluous consumption fueling inflation. However, the pass-through excess finance–economic growth effect via the investment channel is stronger.     

Financial development and economic growth: The Egyptian experience

This paper examines the causal relationship between financial development and economic growth in Egypt during the period 1960–2001 within a trivariate vector autoregressive (VAR) framework (investment being the additional variable). We employ four different measures of financial development and apply Granger causality tests using the cointegration and vector error-correction (VEC) methodology. Our results strongly support the view that financial development and economic growth are mutually causal, that is, causality is bi-directional. Furthermore, we find that financial development causes economic growth through both increasing resources for investment and enhancing efficiency. These findings suggest the need to accelerate the financial reforms that the Egyptian government launched in 1991 and to improve the efficiency of the financial system to stimulate saving/investment and, consequently, long-term economic growth.     

Impact of de-globalization on development: Comparative analysis of an emerging market (India) and a developed country (USA)

Strategists observe that the world is moving toward deglobalization thinking, and developed states have already marked their beginning. In this study, we have tried to analyze how the impact of globalization is different in the case of an emerging market country and a developed country. We have chosen India for our study because of its robust growth in manufacturing and business-friendly policy reforms. On the other hand, we have taken the case of the United States pertaining to the recent policy reforms it has undergone. We have employed the SAP-LAP approach to analyze the country's case situation. This research finds that India’s way of managing globalization has positively affected its dominant performance domains like employment rate, GDP growth, and poverty. Conversely, in the case of a developed country like the United States, globalization has adversely impacted the dominant performance areas, particularly GDP, employment generation rate, and poverty.     

Financial development and economic growth: New evidence from Tunisia

This paper examined an empirical investigation of whether financial development can boost economic growth in Tunisia. We used an Autoregressive Distributed Lag method to assess the finance-growth relation taking private credit, value traded and issuing bank's securities on the financial market as financial development indicators.The empirical results showed that the domestic credit to private sector has a positive effect on the economic growth suggesting that the financial development is a driver of a long term economic growth, but subject to a financial fragility at the short run. Moreover, this study confirmed the view of bidirectional relationship between credit and economic growth. However, we found that neither the stock market development nor the intervention of banks in the stock market had robust and positive effects on the economic growth. Thus, Tunisia is recommended to accelerate in priority the financial reforms of the Tunisian stock market in order to contribute to mobilize savings and promote long run economic growth.     

Regime-specific impact of financial reforms on economic growth in Pakistan

This study uses and proposes a new methodological approach to construct a financial liberalization index on the basis of the dynamic factor model technique. The resulting index is used to investigate the impact of the financial sector reforms in Pakistan on economic growth. Using the Markov regime-switching model over the period 1972–2015, the empirical results showed that the examined relationship is nonlinear, nonmonotonic, state-dependent, and better described by the two-state Markov switching model characterized by the high growth regime and low growth regime. Despite the positive impact of financial liberalization on economic growth in both the high and low growth regimes, financial liberalization relatively strongly affects real GDP growth in the high growth regime. The results further demonstrate that transition probabilities establish an inordinate episode of the low growth regime. Furthermore, the high growth regime is relatively short-lived than the low growth regime. Among the other variables, trade openness and physical capital stock have a positive impact on economic growth, while labor force and government expenditure exert a negative effect on economic growth. Several economic policies are proposed and discussed for better functioning of financial sector development in Pakistan.     

A climate stress test on the financial vulnerability of Italian households and firms

This study presents a novel methodological framework for assessing the exposure of the Italian financial system to climate policy risks, using a micro-founded approach. By combining survey and administrative data with energy accounts and energy prices, we estimate the energy demand elasticity of Italian households and firms at the micro-level and we use this information to simulate the effects of four one-off carbon taxes (corresponding to €50, €100, €200 and €800 per ton of CO₂) on their income and profits. To compute if (and how) carbon taxes might affect the share of financially vulnerable agents and the debt at risk, these estimates are employed as an input for the microsimulation models used to monitor financial stability at the Bank of Italy. According to our results, a level of carbon taxation within the range of €50?200 per ton does not have a sizeable effect on the share of financially vulnerable agents. The micro approach allows us to take into account the heterogeneous transmission channels of climate risks and indicates that the financial risks stemming from climate shocks are limited overall and specific to individual households and industries.     

Social Politics and Policy in an Era of Globalization: Critical Reflections

This paper critically examines the ways in which social policy is said to be affected by globalization. The prevailing approach has been framed in terms of the impact of "external" economic forces on national welfare states. Globalization is said to undermine the economic and political conditions on which welfare states were built, erode national policy autonomy and force the marketization and residualization of welfare states. These predictions are found wanting on the grounds that they share many of the assumptions, and therefore also the faults, of "strong" globalization theory. A more nuanced account of the way in which social politics and social policy are affected by globalization is needed and a global governance perspective is outlined. This, it is argued, better captures the political and institutional environment in which social policy is formulated and implemented. It also recognizes the importance of "local" factors and their interaction with global ones in shaping political responses, including social policy, to globalization. The discussion highlights the enduring power of "local" forces—those which are at the level of and internal to states—and of politics and ideology in shaping the process of globalization and ultimately its implications for welfare states and social policies.     

Remittances,financial development and poverty reduction in Sub-Saharan Africa: Implications for post-COVID-19 macroeconomic policies

To design and implement effective post-COVID-19 macroeconomics policies to tackle poverty in sub-Saharan Africa (SSA), policymakers need to understand the factors shaping poverty in the region. This paper investigates the effect of international remittances and financial development on poverty alleviation in 44 sub-Saharan African SSA countries from 2010 to 2019. The instrumental variable generalised method of moment technique results indicated that while remittances increase poverty, financial development contributes significantly to poverty reduction. The results consistently revealed that remittances increase both male and female poverty rates, while financial development significantly reduces male and female poverty rates. Other factors such as economic growth, foreign direct investment, and trade openness contributed significantly to reducing poverty. In contrast, government expenditure and foreign aid were found to increase poverty rate in SSA. These results are robust to the Lewbel two-stage least squares estimator. The practical implications of these findings for post-COVID-19 macroeconomic policies in SSA are discussed.     

The cross-impact between financial markets,Covid-19 pandemic,and economic sanctions: The case of Iran

The main financial markets in the Iranian Economy include the stock exchange, foreign exchange, oil, and gold markets. The sharp fluctuations in these markets, especially those caused by the severe sanctions imposed on Iran in May 2018, and the pandemic outbreak of Covid-19 have led to more confusion and uncertainty among investors. One of the effective approaches to examine such unstable conditions is to study the co-movement(s) between markets to identify the leading variable(s). Thus, in the present study, Wavelet Coherence Analysis was applied to examine the co-movements between markets in a time period from September 2014 to June 2020, as an intense period of uncertainty in Iran. In other words, in this study, the markets were investigated in different sub-periods. Also, the Segmented Regression was performed to estimate the impact of sanctions and the Covid-19 pandemic on the co-movements of financial markets in Iran.The results showed that the oil price had a low co-movement with the other three markets, i.e. stock exchange, exchange rate, and gold markets. Thus, the oil market can be a suitable alternative for risk aversion investors. Meanwhile, the oil market could also act as a source of finance for the government during the sanctions period. That possibly explains the recent decision by the Iranian government to use the oil market to finance its budget deficit. Between the exchange rate and gold price, the gold price was identified as the leading variable. While the exchange rate and gold price did not show a significant co-movement in stable conditions, they did show a significant co-movement in unstable conditions, as in times of sanctions or during a global pandemic and thus influenced the investors’ portfolio risk. This result is important from a policy-making perspective. Based on this result, the policymakers can, especially during crises and unstable conditions, control the gold market and make it more stable by managing the foreign exchange market.     

Introduction: social policy, economic growth and developmental welfare

Although the notion of developmental welfare is not new, it is only in recent times that its central premises have again attracted attention in social policy circles. Since developmental welfare offers an opportunity to challenge the neo-liberal claim that social expenditures harm the economy, and that economic development requires retrenchments in state welfare, more information about this approach is needed. This article discusses the developmental welfare approach with reference to neo-liberalism's current hegemonic influence on social policy. It traces the historical evolution of developmental welfare, discusses its theoretical implications and outlines its practical proposals.     

Beyond the Nation State: Social Policy in an Age of Globalization

The paper proceeds from the assumption that globalization has placed significant constraints on the autonomy of nation states in the making of social policy. It argues that the post-World War II welfare state represented a social system highly successful in combining economic efficiency and dynamism with equity and solidarity. This historic achievement at the nation-state level is being undermined by economic globalization. It is both necessary and feasible to recreate and institutionalize this mixed system globally. The paper argues that the concept of social rights, which has served as the basic underpinning of the welfare state, has many weaknesses—logical as well as empirical. While the principles of civil and political rights are being consolidated and extended worldwide the principle of social rights is in decay. The paper presents the case for replacing social rights by social standards as the major concept for buttressing systems of social protection. To be applicable globally a social standard must be conceptualized as a level of social development which corresponds to an appropriate level of economic development. Finally, the paper considers the problems and prospects of developing social standards transnationally. It reviews, briefly, the nature and extent of transnational social policy-making by inter-governmental organizations and concludes that despite difficulties of global action advances towards global social standards remain possible.     

经济民营化和民营经济金融化:经济结构研究的新视角

民营经济的发展与经济金融化进程相互影响,是当前我国经济结构变迁的典型特征之一.民营经济为国民经济做出了卓越贡献,金融因素在民营经济发展中既有支持作用,也有制约作用."民营部门取得有限金融资源"和"非正规金融安排空前发展",民营经济除需要资金支持外,更迫切需要成熟、有效的金融制度安排.在经济民营化背景下的民营经济金融化将加速改变金融经济与实质经济的对比格局,从而可能威胁基本经济结构的稳健性和可持续性,所以必须慎重对待民间资本全面渗透金融领域的现象.     

Trade, education, and innovation: Prospects for the U.S. economy

This paper examines international trade issues as vital indicators of the economic prospects of the United States and other developed economies. In particular, it challenges misuses of the doctrine of mutual gains from trade and instead argues that comparative advantage does not guarantee increases in benefits to both trading partners—especially when one partner seeks to distort the market mechanism in its favor. In the face of such mercantilist or protectionist practices, efforts to advance innovation, without retaining manufacturing jobs, will not ensure continued prosperity, as the number of jobs entailed in the invention process is small compared with the number of jobs associated with manufacturing an innovative product for mass consumption. These matters call for the urgent rethinking of trade policy by the United States and other developed nations, if they are to balance their imports and exports and ensure continued economic growth.     

Political economy and the adoption of everyday environmental policies in the American states, 1997: an exploratory analysis

The political economy model has been widely and effectively used to explain and predict adoption rates of highly salient and/or controversial policies in the American states. However, use of this model to predict policy adoption in noncontroversial domains has been limited. This article tests the extent to which the model is successful in explaining the adoption of less-salient, everyday policies intended to improve environmental quality among the American states. The addition of conditional terms related to the model's political and bureaucratic components resulted in explaining 57% of the variance in commitment to everyday environmentalism among the American states. In sum, the number of everyday environmental policies adopted by state governments is a function of economic considerations, legislative accountability and professionalism, bureaucratic commitment, political culture and previous levels of policy adoption. Alternately—and unlike more controversial environmental policy domains—partisanship, ideology, party control of government and interest group forces do not have an impact on adoption of everyday environmental policies.     

Family policy,economic development and infant mortality: a longitudinal comparative analysis

Ferrarini T, Norström T. Family policy, economic development and infant mortality: a longitudinal comparative analysis Int J Soc Welfare 2010: ??: ??–??© 2010 The Author(s), Journal compilation © 2010 Blackwell Publishing Ltd and International Journal of Social Welfare. In the present study, the impact of family policy legislation and economic development on infant mortality was estimated. Time series analyses indicate that economic growth decreased infant mortality in the earlier part of the 20th century, while the postwar period showed a zero or even a reversed correlation between economic development and child health. The results from fixed effects modelling of data for 18 welfare democracies for the period 1970–2000 are in line with the hypothesis that the more generous the earnings‐related parental leave benefits, the lower the infant mortality.     

若干经济问题的思考--在甘肃"资本市场建构与区域经济发展研讨会"上的发言

本文对若干经济问题的探讨 ,对资本市场建构与区城经济发展有重要参考价值。     

The alternative model of development: the practice of community economy in disaster-stricken Sichuan

The discussion of China as a new partner among the ‘old’ international powerful states has largely focused on its actual and potential economic power and performance. To achieve and maintain this status, China has to convince the world and its people that continuous economic development is not only possible but also necessary. The dominant discourse suggests a model of development that relies primarily on the relentless growth in GDP. This discourse has had a profound influence on the post-earthquake redevelopment/reconstruction efforts in Sichuan province. However, alternative models of development/redevelopment also attempt to help the reconstruction of these communities. Community economy as alternative model emphasizes not just on economic growth, but also the importance of renewing the interpersonal relationships among local villagers and the relationships between rural producers and urban consumers. In this paper, the evolution, implementation and outcome of this practice are described and discussed. Implications and recommendations are also drawn for similar community endeavours in the context of global (economic) development.