235 research outputs found
Corruption and financial intermediation in a panel of regions: cross-border effects of corruption
No full textThe importance of financial market reforms in combating corruption has been highlighted in the theoretical literature but has not been systemically tested empirically. In this study we provide a first pass at testing this relationship using both linear and non-monotonic forms of the relationship between corruption and financial intermediation. Our study finds a negative and statistically significant impact of financial intermediation on corruption. Specifically, the results imply that a one standard deviation increase in financial intermediation is associated with a decrease in corruption of 0.20 points, or 16 percent of the standard deviation in the corruption index and this relationship is shown to be robust to a variety of specification changes, including: (i) different sets of control variables; (ii) different econometrics techniques; (iii) different sample sizes; (iv) alternative corruption indices; (v) removal of outliers; (vi) different sets of panels; and (vii) allowing for cross country interdependence, contagion effects, of corruption.corruption; contagion effects; financial Intermediation; panel data
Tugas Matakuliah Kemiskinan
No full textTulisan ini berbentuk critical review dari artikel yang berjudul Determinants of Household
Poverty: Empirical Evidence from Pakistan, yang ditulis M. Tariq Majeed dan M. Nauman
Malik. Artikel ini diterbitkan oleh Pakistan Institute of Development Economics, Islamabad,
The Pakistan Development Review (2015), 54(4), 701-71
Trade, Poverty and Employment: Empirical Evidence from Pakistan
No full textThis study investigates the development effects of trade liberalization in Pakistan over the period 1970-2006. The empirical analysis builds on four indicators of economic development that are per capita GDP, inequality, poverty and employment. Since these indicators have simultaneity problem, the model has been estimated with General Method of Moments (GMM) econometrics technique. The results show that the effect of trade liberalization on per capita GDP is insignificant though sign is positive while its effect on employment is negative. Although trade theory predicts that trade openness is the potential source of economic growth that in turn spills over its positive effects on labor market but this study reveals jobless-openness phenomenon in Pakistan. It is also found that trade liberalization has increased income inequalities because it creates winners and losers simultaneously and the net welfare impact is negative. As far as eradication of poverty is concerned, it has been found that trade accentuates, not ameliorates, and that it intensifies, not diminishes, poverty in case of Pakistan. The role of human capital emerged as a most favorable factor in enhancing PGDP and eradication of poverty. The central message of this study is that trade liberalization is not pro development in case of Pakistan and investment in human capital is the effective tool for development and fight against poverty
Distributional Consequences of Remittances: Evidence from Sixty-Five Developing Countries
No full textThis paper investigates the distributional consequences of international remittances using a panel data set from sixty five developing economies from 1970 to 2015. It focuses on complementarity between financial development and remittances in determining the inequality-impact of remittances using instrumental variables techniques of panel data for empirical analysis.
The study finds out that inequality-effect of remittances differs between developing economies depending upon the strength of financial sector. International remittances help to the poor by reducing inequality in developing countries where financial markets are comparatively developed. However, the inequality-effect of remittances turns out to be adverse in developing economies where financial markets are underdeveloped. This effect arises because the strength of financial sector and remittances has a complimentary role in determining inequality-effect of remittances. The empirical findings of the study are robust to different specifications, econometrics techniques, additional control variables and subsamples.
This research paper contributes into the literature on inequality and remittances by highlighting the heterogeneity of developing economies in shaping the distributional effects of international remittances. It is first study of its kind, to my knowledge, that provides an empirical analysis of complementarity between financial development and remittances in shaping the inequality-effect of remittances. The main message of this research is that the strength of financial sector in remittances receiving economies is critical in determining the inequality impacts of remittances. Therefore, the governments of developing economies need to improve their financial sectors to take the maximum advantages of international remittances
Poverty Consequences of Globalisation in OIC Countries: A Comparative Analysis
No full textWilliamson (2002) points out that ‘the world has seen two
globalisation booms over the past two centuries and one bust. The first
global century ended with World War I and the second started at the end
of World War II, while the years in between were ones of anti-global
backlash’. In the first period of globalisation, poverty fell from 84
percent in 1820 to 66 percent in 1910. In the second period of
globalisation poverty fell from 55 percent in 1950 to 24 percent in
1992. In the inter-war period, the world population living in poverty
remains probably stagnant. The historical negative relationship between
globalisation and poverty masks variations within and between countries
in their experiences with globalisation. Many decades of increasing
globalisation have not yet silenced the debate over the benefits of
globalisation. The fierce street protests surrounding the ministerial
meeting of the WTO and similar protests at the World Bank and the IMF
show that anti-globalisation debate is getting strong
Synergy or too big to fail: Empirical analysis of mergers and acquisitions in SAARC and ASEAN regions
No full textThe purpose of the study is to examine the impact of agency issues such as free cash flow, empire-building, managerial risk aversion, and private benefit of control on post-merger financial performance in the context of emerging markets of SAARC and ASEAN regions. The sampling period for the study is from 2000 to 2017, limited to M&A deals where at least three years of pre- and post-merger data is available. A total of 184 M&A deals were analyzed from SAARC and ASEAN regions. Financial performance is measured through operating profit returns and cash returns, while the explanatory variables are free cash flow, firms’ size, industry relatedness, and block holding. Two-sample t-test is used for univariate analysis, and OLS regression is used for multivariate analysis. Results reveal that post-mergers and acquisition (M&A) financial performance declined as compared to pre-M&A financial performance over three (−3, +3) years window. Opposite to the free cash flow hypothesis, this study found that free cash flows are beneficial for acquirers in the context of emerging markets. Furthermore, acquirers’ size has either no impact or a significantly positive impact in robustness check on post-M&A performance, which rejects the empire-building motive. Unrelated mergers cause a decline in post-M&A performance, and large block holding enhances post-M&A performance. The findings of the study are helpful for managers, shareholders, and the board’s members to ensure that the free cash flow before the M&A transaction is positive and consistent also conscious of the nature of the target and avoid unrelated M&A deals
Selling souls: an empirical analysis of human trafficking and globalization
No full textThis paper investigates the impact of globalization on human trafficking using a large panel data set of 169 countries from 2001 to 2011. This study explores the contribution of economic, social and political globalization in the trafficking of humans for forced prostitution, forced labor, debt bondages and child soldiers. Moreover, the study investigates the impact of globalization on source (supply) and destination (demand) of human trafficking. This study uses Probit and Oprobit models of panel data for empirical analysis. Findings of the study show that globalization facilitates human trafficking, particularly, forced prostitution, forced labor and debt bondages while it helps to suppress the demand and supply of child soldiers. The empirical analysis also reveals that these are the mostly poor countries which serve as source of human trafficking while the rich countries are destination of trafficked victims. The data series over a long period are not available and therefore the sample size is small. This research paper contributes into the literature on human trafficking and globalization by highlighting the heterogeneity of source and destiny economies in shaping the links of globalization with human trafficking. To the best of our knowledge, it is first study of its kind that provides an empirical analysis of source and destiny of human trafficking with globalization. Moreover, this study considers different dimensions of globalization and human trafficking. The main message of this research is that as globalization proceeds, human trafficking increases. Therefore, the governments of developing economies need to improve socioeconomic conditions to provide basic necessities of life at home country and the governments of developed countries need to implement strong rule of the law to discourage such practices. Our study is useful in offering insights to policy makers that how to avoid the perils of globalization
THE effects of ageing on driving related performance
No full textAccording to one estimate, about 40 percent of the driving population will be over the age of 60by the year 2020 in the UK and currently, several hundred thousand drivers with dementia holddriving licenses. The number of motor vehicle crashes per unit distance of automobile travel is“U”-shaped, with risk increasing slightly between the ages of 55 and 60, but risk increasing witheach successive five-year interval. Some individuals who have mild dementia possess sufficientdriving skills to be designated as fit drivers. The most challenging assessment and decision for thephysician/licensing authority as regards fitness to drive lies in drivers who are questionablydemented or are in a state of very mild dementia.In the absence of a reliable standard protocol, some clinicians make judgment based on selfreporting,which has risks associated with it as lack of insight and judgment are potential commontraits of the population experiencing cognitive decline. Seldom is recourse made by healthprofessionals to on-road assessment as a first alternative as it requires a fee and such testingcenters are not readily available everywhere. This research addresses this issue of theidentification of cognitive tests that can be used to assess an individual’s ability to drive andespecially of those individuals that are questionably demented and are the most difficult toidentify. A younger and an older group consisting of 56 drivers in total were administered ninedifferent cognitive tests and two drives (Drive-I and Drive-II) on the STISIM driving simulator.The cognitive test ufov3 (involving the identification of a central target and simultaneously theradial localization of a peripheral target embedded in distracter triangles), which is the thirdsubtest of the UFOV (Useful Field of View) test showed the highest discriminating ability inseparating “poor-drivers” from “not-poor-drivers”, with 92.86 % of the drivers correctlyclassified. The next best discriminating ability in decreasing order of strength was that of dichoticlistening test, trail making test, rey-copy test and paper folding test. Also, age was found to be anexcellent discriminator of “poor-drivers” and “not-poor-drivers” with 91.07 % of the driverscorrectly classified. A composite cognitive measure consisting of the sum of all nine cognitivetests was not a better predictor than the ufov3 test alone; overall it was still an excellentdiscriminator, classifying 89.29 % of drivers correctly. The commonly recommended ClockDrawing test and the Trail Making test did not emerge as significant predictors of driving ability.A general driving skills linear model for prediction purposes was derived that explained 59 % ofthe variation in a general driving performance index with the ufov3 test, the dichotic listening testand the rey-recall test as significant predictors. Recommendations are made as to how this testshould be used to screen potentially at risk drivers
Economic Growth and Income Inequality Relationship: Role of Credit Market Imperfection
No full textThis paper examines the empirical relationship between economic growth and income inequality both at aggregate and regional level using more comparable data set for 69 developing countries over the period 1965-2003. The study identifies credit market imperfection in low-income developing countries as the likely reason for a strong negative relationship between income inequality and economic growth. While in short run the relationship between growth and income inequality might be positive but over time more income inequalities reduces economic growth. Moreover, this paper finds evidence that more physical and human capital investment, openness to trade and higher government spending have statistically significant impact on enhancing economic growth and reducing inequality.Economic Growth, Income Inequality, Poverty, Credit Market Imperfection, Trade Openness
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