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Numerous papers have shown that developing economies are more volatile. We show that, despite greater aggregate and industry stability, performance and size of individual firms in developed countries are more volatile. In developing countries, market imperfections insulate incumbent firms from competition. Consistent with this, firms in developing countries have higher profit, higher market concentration, and less capital raising. Cross-country differences in operating risk and competition intensity are greater in industries that are dependent on external finance, where we expect higher impacts of capital-market imperfections. We show the inverse relation between aggregate and firm-level volatilities has important implications for international studies of cash holding. [ABSTRACT FROM AUTHOR]

For both developed and developing countries, manufacturing plays a crucial role in international competition. There is a growing consensus that 3D printing (3DP) technologies will revolutionise the development of global manufacturing. Although considerable research has previously been conducted to define the technological and economic benefits of 3DP on global manufacturing, minimal research has linked 3DP with Chinese manufacturing (CM). Therefore, to address this research gap and to investigate 3DP’s potential impact on alleviating CM’s development issues, this paper explores the definition, characteristics and mainstream technologies of 3DP, presents the current situation and the main problems of CM, and analyses the potential impact of 3DP on the development of CM. Then, this study introduces the current 3DP promotion and industrialisation situation in China as well as the issues with promoting 3DP in CM. [ABSTRACT FROM PUBLISHER]

We investigate the role of country characteristics on the competition-governance relation. We find that competition is associated with higher ratings in corporate governance, but only in developing countries. Further, corporate governance is associated with greater firm value, but only in less competitive industries from developed countries. For developing countries, the evidence suggests that corporate governance is valuable mostly in competitive industries. Additional tests show that corporate governance increases labor productivity and cost efficiency, mostly in less competitive industries in both developed and developing countries. Furthermore, in developing countries, corporate governance increases investment in capital, but primarily in competitive industries. [ABSTRACT FROM PUBLISHER]

International migration to developing countries has attracted increasing attention because of its growing volume in absolute terms and its potential contribution to development. However, conclusions about what is happening in these countries depend crucially on the way migration and development are measured and analysed. This article shows that whether migrant stocks appear to be increasing or decreasing in developing countries depends on three factors: whether a regional or an economic criterion of "development" is used, whether volume is expressed in absolute numbers or as a percentage of total population, and whether the data include refugees and asylum seekers. The policy implications of these findings, which – due to the shortcomings of available data – can only be regarded as provisional, are then discussed. Better quality migration data and analysis informed by the limitations of the data are needed to provide a sound evidence base for current debates about migration policy. [ABSTRACT FROM AUTHOR]

We examine the record of cross-country growth over the past fifty years and ask if developing countries have made progress on closing the income gap between their per capita incomes and those in the advanced economies. We conclude that, as a group, they have not and then survey the literature on absolute convergence with particular emphasis on that from the last decade or so. That literature supports our conclusion of a lack of progress in closing the income gap between countries. We close with a brief examination of the recent literature on cross-individual distribution of income, which finds that despite the lack of progress on cross country convergence, global inequality has tended to fall since 2000. (JEL E01, E13, O11, O47, F41, F62) [ABSTRACT FROM AUTHOR]

The side effects of the Global South's 1980s debt crisis on the Council of Mutual Economic Assistance (CMEA) member countries have received scant scholarly attention, even though the members were important trading partners for many developing countries. This paper focuses on the reaction of the East by looking at internal documents from CMEA meetings. It is argued that the crisis of the South aggravated the already pending crisis of the Eastern economies. The CMEA countries reacted by taking on more risks in doing business with the South and trying to secure the debt repayments by adopting Western financial practices. [ABSTRACT FROM AUTHOR]

The implementation of socially sustainable practices in suppliers situated in challenging institutional contexts is examined using institutional theory, both in terms of how institutional pressures affect implementation and what explains the decoupling of practices from the day-to-day reality. A multi-case study approach is employed based on seven apparel industry suppliers in Bangladesh. Cross-case analysis highlights the coercive, mimetic, and normative pressures on suppliers to implement socially sustainable practices. A key pressure identified that has not previously been highlighted in the literature is horizontal collaboration between buyers, which intensifies coercive pressure on suppliers and increases the consequences of non-compliance. The factors that contribute to decoupling are categorized into firm-, supply chain-, and environment-related factors. Further, six propositions are developed on how specific forms of institutional pressure can tackle particular decoupling factors to support implementation. The paper responds to recent calls for greater scrutiny of why and how firms decouple ethical practices and supports the development of the literature specifically on social sustainability, which lags behind that on environmental sustainability and has been largely focused on the Western buyer perspective. The findings have implications for the diffusion of ethical practices into supply chains, especially distant suppliers in very different and challenging institutional contexts. [ABSTRACT FROM AUTHOR]

Donor agencies and foundations use grants to stimulate entrepreneurial growth in developing countries. However, some practitioners have asked whether these grants tend to flow to expatriate entrepreneurs with ties to developed countries (where most grants originate), rather than to local entrepreneurs. This article tackles this question using a data set of 3,434 nascent ventures from 92 developing countries. The authors find that ventures with ties to a developed country are significantly more likely to raise grant financing and in more substantial amounts. Ventures with a founder born in a developed country are the most likely to receive grants, with a weaker effect when considering prior work experience in a developed country. This "expat gap" cannot be explained by differences in education level, prior experience, or ties to other developing countries. Donors seeking to support local entrepreneurs in developing countries should consider ways to make their recruitment and selection processes more equitable. [ABSTRACT FROM AUTHOR]

The article discusses the neoconservative foreign policy and the New International Economic Order (NIEO) established in 1974 by the United Nations (UN) General Assembly. Topics explored include the reform of postwar economic order proposed by Third World representatives, the way neoconservatives acknowledged the revolutionary threat associated with NIEO with regard to the global power of the U.S., the conflict between then U.S. Ambassador to the UN Daniel Patrick Moynihan and U.S. State Secretary Henry Kissinger on NIEO policies, and the concerns raised by neoconservatives over U.S. foreign policies pertaining to the NIEO.

This article examines the economic development of Turkey from a comparative global perspective. With the help of GDP per capita and other series, it shows that Turkey's record in economic growth and human development since 1820 has been close to world averages and a little above developing country averages. The early focus of the article is on the proximate causes—average rates of investment, below‐average rates of schooling, low rates of total productivity growth, and low technology content of production—which provide important insights into why GDP per capita increases were not any higher. For the deeper causes, the article emphasizes the role of institutions and institutional change. Turkey's formal economic institutions had been influenced by international rules since the nineteenth century, and these rules did not always support economic development. Turkey's elites also made extensive changes in formal political and economic institutions. Formal institutions were only part of the story, however. The direction of institutional change also depended on the political order and the degree of understanding between different groups and their elites. When the political system could not manage the recurring tensions and cleavages between the different elites, economic outcomes suffered. [ABSTRACT FROM AUTHOR]

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'Neighbourhood cooperation' can be viewed as a key element for livelihood improvement, particularly within areas of urban poverty in Least Developed Countries (LDCs). Such cooperation might be useful for mobilising resources and sharing risks of investing in infrastructures/services and maintaining common goods. This article explores the structural relationships between individual level cooperation and overall social capital, in relation to household and neighbourhood characteristics. These relationships are complex as various factors are interlinked, which influence cooperation at both individual and group levels. Literature on social capital has relied mainly on Western countries; from this starting point, this article analyses the relationships among aspects of social capital. Analytical models are based on Durlauf's approach of measuring 'social capital' and Manski's perspective on social interaction, which are tested on 1800 households' data across three locations in Bangladesh. The estimates reveal that individual level cooperation can be influenced directly by households' socio economic circumstances and indirectly through neighbourhood mediation, while questioning some theoretical generalisations about neighbourhood cooperation. The findings contribute to the literature on neighbourhood effects by revealing that: (a) the relationship between one's socio economic status and one's social capital is less clear than expected; and (b) extreme poverty and proximity of living in a neighbourhood can promote norms of trust and cooperation. [ABSTRACT FROM AUTHOR]

Remittances have become an important source of external finance in many developing countries. This article examines the relationship between remittances, institutions and economic growth in a panel of 26 African countries over the period 1980–2014. We apply the fixed effects (FE) and the two‐step system generalized method‐of‐moments (GMM) estimation methods. Our results show that there is a positive relationship between remittances and growth. We also find that institutions are an important determinant of economic growth. The interaction terms have a positive and statistically significant effect on economic growth. Thus, the growth effect of remittances is enhanced in the presence of strong institutions. Strong institutions are therefore germane in attracting greater remittance inflows to African countries. A clearer understanding of the channels through which remittance flows will enhance growth in African economies may assist policymakers to craft appropriate policies. In particular, a policy environment that promotes strong institutions would serve to attract more remittances. [ABSTRACT FROM AUTHOR]

The article explains the Bottom-of-the-Pyramid (BOP) business concept which was introduced by C. K. Prahalad and S. L. Hart. BOP contends that there is purchasing power and market opportunities in developing countries, that consumers are value-conscious and entrepreneurial, and that multinational business enterprises can help reduce poverty, as well as make significant profits from selling products to low-income consumers. The implementation of BOP strategies in Novozymes, a Danish biotechnology company, and the four organizational barriers that challenged the BOP project are discussed.

The article focuses on the outlook for capitalism in the 21st century and for prosperity in developing countries such as Brazil, Russia, India, and China which are referred to as the BRIC world. The influence of civil society, the not-for-profit sector, and non-governmental organizations on a country's transition from a state-controlled economy to a market economy is discussed, as well as the role of multinational business enterprises in the formation of civil-society institutions and on the stabilization of socioeconomic conditions in BRIC countries. The state's role in intervening and regulating its national economy in statist capitalism is also discussed.

Using a sample of 500 large companies over a two-year period, we examine the impact of board characteristics on opportunistic earnings management in India, a large emerging economy. In addition to board independence, we analyze how characteristics that proxy for the ''quality'' of inside and outside directors affect the role of boards in curbing earnings management. Our results indicate that it is not board independence per se, but rather board quality that is important for earnings management. We find that diligent boards are associated with lower earnings management, while boards that have directors with multiple appointments exhibit higher earnings management. With respect to inside directors, our results indicate that chief executive officer (CEO) duality and presence of controlling shareholders on the board increases earnings management. We also find that domestic institutional owners, one of our key control variables, act as a compensating control mechanism to mitigate the detrimental influence of controlling shareholders on earnings management. Our results complement the existing literature by analyzing the role of the board in reducing earnings management in emerging economies such as India, where the structures of business organizations are different from those in developed markets. [ABSTRACT FROM AUTHOR]

The article discusses the role of market-driven forces in the alleviation of poverty. The authors focus on strategic business models that encourage better distribution of resources to the urban poor in order to provide access to the open market. Details are provided regarding the global poor in developing countries and the challenges that face proper distribution, including inadequate civil infrastructure, illiteracy, and underdeveloped skills. The authors suggest strategies to improve distribution including the elimination of distributive costs, creating new routes through which resources are distributed, and increasing private sector investing. Also discussed is the example of the Imperial Tobacco Company (ITC) Ltd. in alleviating poverty through the trading of commodities.

The extensive literature on the employment impact of minimum wages has focused heavily on industrialized nations and very little on the developing world, despite the importance of minimum wages in many low-income countries. One such country, Indonesia, was the setting for an unusual quasi-natural experiment: not only did minimum wages in Indonesia increase sharply between 1990 and 1996, but the resultant increment in average wages varied markedly across different areas in Greater Jakarta. The authors use household-level labor market data to determine the extent of compliance with the legislation, then estimate the employment impact in the clothing, textiles, footwear, and leather industries based on a census of all large and medium-sized establishments. The evidence suggests that there was no negative employment impact for large establishments, either foreign or domestic, but that workers in smaller, domestic establishments may have suffered job losses as a result of minimum wage increases. [ABSTRACT FROM AUTHOR]

Increasing foreign participation and high concentration levels characterize the recent evolution of banking sectors' market structures in developing countries. We analyze the impact of these factors on Latin American bank spreads during the late 1990s. Our results suggest that foreign banks were able to charge lower spreads relative to domestic banks. This was more so for de novo foreign banks than for those that entered through acquisitions. The overall level of foreign bank participation seemed to influence spreads indirectly, primarily through its effect on administrative costs. Bank concentration was positively and directly related to both higher spreads and costs. [ABSTRACT FROM AUTHOR]

In countries with more secure property rights, firms might allocate resources better and consequentially grow faster as the returns on different types of assets are more protected against competitor's actions. Using data on sectoral value added for a large number of countries, we find evidence consistent with better property rights leading to higher growth through improved asset allocation. Quantitatively, the growth effect is as large as that of improved access to financing due to greater financial development. Our results are robust using various samples and specifications, including controlling for growth opportunities. [ABSTRACT FROM AUTHOR]

We propose that the limited financial development of emerging markets is a significant factor behind the large share of dollar-denominated external debt present in these markets. We show that when financial constraints affect borrowing and lending between domestic agents, agents undervalue insuring against an exchange rate depreciation. Since more of this insurance is present when external debt is denominated in domestic currency rather than in dollars, this result implies that domestic agents choose excessive dollar debt. We also show that limited financial development reduces the incentives for foreign lenders to enter emerging markets. The retarded entry reinforces the underinsurance problem. [ABSTRACT FROM AUTHOR]

The paper reviews the main challenges faced by policymakers in emerging market economies, EMs, in light of recent financial crises, and taking into account salient factors like the existence of partial dollarization, imperfect credibility, weak financial systems, and contagion. The standard theory of optimal currency areas is discussed and criticized for omitting the above factors. When these factors are taken into account, an extreme foreign exchange regime like dollarization is shown to become much more attractive. The paper discusses the pros and cons of dollarization and, among other things, shows that the lack of a lender of last resort is not necessarily a major drawback in EMs. The paper also discusses inflation targeting, IT. In a formal model, it is shown that IT could be subject to credibility problems similar to those found in exchange rate-based stabilization programs. [ABSTRACT FROM AUTHOR]

This article addresses three main issues: why there is such a huge diversity of disposable income inequality across the world, why there is such a deterioration of market inequality among countries of the Organization for Economic Cooperation and Development (OECD), and why inequality seems to move in 'waves'. There are many underlying questions: does diversity reflect a variety of fundamentals, or a multiplicity of power structures and choice? Is rising market inequality the product of somehow 'exogenous' factors (e.g., r>g), or of complex interactions between political settlements and market failures? How do we get through the veils obscuring these interactions and distorting our vision of the often self‐constructed nature of inequality? Has neoliberal globalization broadened the scope for 'distributional failures' by, for example, triggering a process of 'reverse catching‐up' in the OECD, so that highly unequal middle‐income countries like those in Latin America now embody the shape of things to come? Are we all converging towards features such as mobile élites creaming off the rewards of economic growth, and 'magic realist' politics that lack self‐respect if not originality? Should I say, 'Welcome to the Third World'? In this paper I also develop a new approach for examining and measuring inequality (distance from distributive targets), and a new concept of 'distributional waves'. The article concludes that, to understand current distributive dynamics, what matters is to comprehend the forces determining the share of the rich — and, in terms of growth, what they choose to do with it (and how they are allowed do it). [ABSTRACT FROM AUTHOR]

This article focuses on the nature of party systems to explain variations in foreign direct investment inflows within developing democracies. We hypothesize a positive relationship between the effective number of parliamentary parties and foreign direct investment inflows. Large effective number of parliamentary parties is indicative of the expropriation risks as well as stability of the political environment of host countries. We thus argue that expropriation risks are low when the presence of multiple parties makes drastic, impulsive changes in economic policies difficult. We also suggest that a larger number of parties represent diverse societal interests better, reducing the chances of underrepresented social groups driving political instability. The relationship between effective number of parliamentary party and foreign direct investment inflows is tested on a sample of 56 developing democracies from 1985 to 2011. The evidence presented lends strong support to the argument and is found robust to a number of alternative empirical scenarios. [ABSTRACT FROM AUTHOR]

This article investigates the drivers of investment growth in emerging market and developing economies with a focus on the most recent slowdown over the 2010-2015 period. Using panel regression techniques, we find that the recent investment slowdown in emerging market and developing economies is associated with a range of obstacles: weak economic activity, negative terms-of-trade shocks, declining foreign direct investment inflows, elevated private debt burdens, and heightened political risk. This stands in contrast with advanced economies, where weak economic activity is the most important factor. We briefly discuss policy implications of our findings. [ABSTRACT FROM AUTHOR]

This article seeks to identify and analyze the organizational determinants of women presence on Indian corporate boards. Using a sample set of 294 Indian firms between years 2004-2014, Tobit regression analysis indicates that firm size, family ownership and affiliation with the high-tech sector exhibit positive association with the number of female directors on corporate boards. Further, we do not find any significant impact of state-ownership on the number of women on those boards. Notably, the effects of the organizational variables are more pronounced for the proportion of female non-executive directors, as compared to female executive directors. We conclude that understanding the organizational characteristics in conjunction with business environment can provide useful insights into state of board gender diversity, particularly in developing countries. [ABSTRACT FROM AUTHOR]

The Economic situation in most Third World countries since independence have not shown signs of improvement. The result is that those at the prime of their lives which would have stirred the economy to greater height are moving en masse out of the area in search of greener pastures elsewhere especially across the desert into Europe, a situation that has negatively affected her development over the years in these Third World Countries using Nigeria as example. The impact-effect as well as the how, why and when of this is what this paper intends to interrogate as it relates to the Nigerian situation as well as those of her neighbours especially in the last two centuries using the facts and lessons of history. Data obtained from primary and secondary sources (literature review and content analysis) were deployed to carry out the study with an analytical and narrative historical method. [ABSTRACT FROM AUTHOR]

While women's share of employment has risen in many countries over the last two decades, gender job segregation has worsened, with women increasingly excluded from 'good' jobs in the industrial sector. In this article, the determinants of gender job segregation are assessed using panel data for a broad set of developing countries covering the period 1991–2015. The effect of gender job segregation on all workers, via the labour share of income, is also analysed. The results identify two major contributors to gender job segregation — the rising capital/labour ratio and the ratio of female/male labour force participation rates — indicative of 'crowding' and exclusion as economies move up the industrial ladder. The analysis further indicates that the crowding of women into lower quality jobs has a negative effect on workers as a whole by dampening the labour share of income. Those processes are influenced by global and macroeconomic conditions and policies that have circumscribed the expansion of high‐quality jobs relative to labour supply, intensifying competition for 'good' jobs and weakening labour's bargaining power. [ABSTRACT FROM AUTHOR]

This paper studies the responsiveness of government expenditures to business cycles and introduces an index of asymmetric government expenditures using panel data for advanced and developing countries during the period 1981–2014. The empirical findings show that government expenditures tend to be procyclical in developing countries but acyclical in advanced economies. In addition, it is found that government expenditures respond in a countercyclical manner during bad times in advanced countries, but in a strongly procyclical manner during good times in developing countries. The index of asymmetric government expenditures for developing countries tends to be higher than that of the advanced countries. [ABSTRACT FROM AUTHOR]

Regional integration in Asia has been considerably enhanced over the past 20 years or so. Whether integration helps Asian countries reduce their vulnerability to external shocks or is a channel for spreading external shocks remains an open question. This paper assesses the spillovers from US monetary policy shocks to Asian countries while taking into account country‐specific characteristics in explaining differences in timing and magnitude of responses across Asian countries. The results indicate that policy interest rates in Asian countries generally respond to innovations in the Fed rate in the same direction, but typically with a lag of one quarter. However, the size of the responses varies across Asian countries with respect to country‐specific characteristics. These results suggest that an independent monetary policy may not be feasible for an Asian developing country that adopts a pegged rate regime while being extensively integrated into the world economy. However, the hypothesis of the impossible trinity may not be relevant in the case of China. [ABSTRACT FROM AUTHOR]

Not all economically disadvantaged—"less developed" or "lagging"—regions are the same. They are, however, often bundled together for the purposes of innovation policy design and implementation. This paper attempts to determine whether such bundling is warranted by conducting a regional level investigation for Canada, the United States, on the one hand, and Europe, on the other, to (a) identify the structural and socioeconomic factors that drive patenting in the less developed regions of North America and Europe, respectively; and (b) explore how these factors differ between the two contexts. The empirical analysis, estimated using a mixed‐model approach, reveals that, while there are similarities between the drivers of innovation in North America's and Europe's lagging regions, a number of important differences between the two continents prevail. The analysis also indicates that the territorial processes of innovation in North America's and Europe's less developed regions are more similar to those of their more developed counterparts than to one another. [ABSTRACT FROM AUTHOR]

This study examines the relationship between religiosity, income and subjective wellbeing in a sample of developing countries using data from the World Values Survey Waves 2-6 (1990-2014). Beyond examining the effects of religiosity and income on subjective wellbeing separately and independently, we also examine how the interaction between religiosity and income affects wellbeing. Our results suggest that while both religiosity and income positively affect wellbeing, the effect of income on wellbeing is relatively stronger (quantitatively larger in size) than the effects of religiosity. Furthermore, we find evidence in favour of complementarity between religiosity and income which show stronger effects on wellbeing than the individual effects of income and religiosity. [ABSTRACT FROM AUTHOR]

The paper empirically investigated the relationship between remittance flows and output growth volatility for an extensive sample predominated by emerging and developing countries. Following this broad treatment, it goes further to estimate the extent to which the degree of financial development (FD) impacts on the remittances-growth volatility nexus. This novelty distinguishes the work from previous studies. Using the system-generalized method of moments estimator, which corrects for endogenity and omitted variable concerns, on data spanning the period 1996-2012 for a total of 71 countries some interesting findings ensued. One, both remittances and FD had growth volatility dampening effects. Two, the interaction between proxies for FD and remittances produced mixed results. Three, when volatility of FD is accounted for, the interactive term had mixed results. For instance, banking sector credit produces positive and insignificant coefficients, while private sector produced significant and negative coefficients. Summarily putting these results in other words, the counter-cyclicality of remittances was established, while the complementary dampening effect of financial development is dependent upon its measure. On the basis of the foregoing, a few related policy lessons are documented to conclude the paper. [ABSTRACT FROM AUTHOR]

To prepare an answer to the question of how a developing country can attract foreign direct investment (FDI), this paper explored the factors and policies that may help bring FDI into a developing country by utilising an extended version of the knowledge‐capital model. With a special focus on the effects of a free trade agreement (FTA) or an economic partnership agreement (EPA) between a pair of market and non‐market countries, simulations with the model revealed the following: (i) although FTA/EPA generally tends to increase FDI to a developing country, the possibility of improving welfare through increased demand for skilled and unskilled labour decreases as the size of the country grows; (ii) a developing country may suffer severe welfare losses through FTA/EPA if the availability of skilled labour is extremely limited; and (iii) a developing country can enhance welfare gains from a FTA, and it is even possible to recover the welfare effects from negative to positive, by making the arrangement an EPA. [ABSTRACT FROM AUTHOR]

Studies have found substantial differences in health-related behavior and health care usage between educational groups, which may explain part of the well-documented educational gradient in health. The allocative efficiency hypothesis offers a behavioral explanation for these reported differences. According to this theory, the educated possess more health knowledge and information, allowing them to make better health choices. We perform a mediation analysis to study this mechanism using original survey data from the Philippines, a lower-middle-income country. As an extension of previous empirical research, we construct a comprehensive index that captures different dimensions of health knowledge. Using generalized propensity scores, we find strong support for the allocative efficiency argument. Schooling is significantly associated with health knowledge levels, which explain up to 69% of the education effect on health lifestyle. This corresponds to twice the mediation strength of economic resources, suggesting an important role of this factor in explaining education effects on health decisions. [ABSTRACT FROM AUTHOR]

The forest transition describes a reversal or turnaround in long-run land-use trends for a country or region from a period of net forest area loss to net gain. Following North, this paper constructs a model to show that effective institutions may impose additional costs on a representative economic agent converting forests to agriculture in a tropical developing country. The main outcome to emerge from the model is that an improvement in institutions accelerates the onset of a forest transition. This hypothesis is tested by examining the probability of a forest transition occurring for 101 tropical developing countries over 1990 to 2015. The empirical results suggest that the hypothesis cannot be fully rejected. However, not all the institutional indicators analyzed affect the likelihood of the forest transition, and one economy-wide indicator appears to delay the transition. Nevertheless, the results illustrate the importance of understanding how institutional indicators affect the decisions of economic agents concerning land clearing as well as forest management practices and policies. [ABSTRACT FROM AUTHOR]

Natural resources influence economic performance through many different mechanisms, both beneficial and harmful. Some of these mechanisms tend to set in fast while others are rather slow. This suggests that pooling the long- and short-run effect as typical in the resource empirical literature may lead to incorrect inferences. This article provides an evaluation of the income contribution of natural resources using a panel cointegration approach that allows for short-run dynamic heterogeneity while imposing the restriction of long-run homogeneity. It finds, in a sample of developing countries over the period 1990-2012, that natural resources are a curse in the long run. The evidence is robust to alternative dynamic specifications, different measures and types of natural resource wealth, and controlling for regional effects. [ABSTRACT FROM AUTHOR]

Faced with the failure of traditional immigration controls, policymakers in the United States and Western Europe increasingly look to foreign aid to reduce migrant inflows. Some analysts expect assistance to improve living standards in source countries, thereby deterring residents from moving abroad. While this idea makes intuitive sense, research on aid and migration shows mixed results: some scholarly work supports aid-based migration policies, but other analyses suggest that aid actually enables migration by providing individuals with resources that facilitate movement across borders. We suggest that this tension in the literature reflects a failure to distinguish between different types of foreign aid. Drawing on recent work demonstrating the heterogeneous effects of various aid projects, we posit that governance aid should deter emigration by enhancing government capacity and alleviating political push factors; in contrast, economic and social aid should enable migration by increasing individuals' means and capabilities to move. We test our hypotheses on a panel of 101 developing countries spanning twenty-five years (1985–2010). We find that governance aid does reduce emigration rates from developing countries, while other types of aid appear not to affect migration. [ABSTRACT FROM AUTHOR]

Purpose The purpose of this paper is to examine relationship between corporate governance (CG) and firm performance for a set of 255 foreign-funded firms in the form of foreign direct investment (FDI) and private equity (PE). The authors employ a wide range of CG measures including board size, meetings, board gender and foreign ownership which are used as the proxy of globalisation and control variables like firm age, leverage, firm size and capital expenditure to arrive at a conclusion.Design/methodology/approach Panel data set of 255 (187 companies funded by foreign capital in the form of FDI, and 68 companies having foreign capital in the form PE) companies listed on Bombay Stock Exchange, for the period of eight years (2008–2015) are analysed by using static (fixed and random effects) and dynamic (generalised method of moments (GMM)) panel data specifications to examine the relationship among CG, globalisation and firm performance.Findings The empirical results of static model indicate the relationship between CG and performance of foreign firms, which are not very strong in India. This is due to the fact that most of the firms are not following the guidelines and regulations strictly in the initial period of sample years. Diversity in board is found as an important variable in accessing firm performance. And the authors also found that foreign firms are very particular about the implementation of CG norms. The results of GMM model highlight the interaction term of foreign ownership with governance indicators. CG is having a positive and significant impact over performance, inferring that higher foreign ownership (in the form of FDI and PE) in firm leading to positive effect on profitability.Practical implications The investor’s preference of financing a unit is guided by the performance of a firm. Investors are more inclined towards high-performing firms, and hence higher profitability leads to higher inflow of capital. The result indicates that higher accounting and market performance may be achieved by good governance practices, in turn, leading to reduced agency costs. Countries with high governance scores attract more of foreign capital. Similar to the best governed countries, the companies having good governance practices attract more foreign inflows in the form of capital.Originality/value While previous literature considered a single measurement framework in the form of a CG index, the authors tried to incorporate a range of CG indicators to study the effect of globalisation and CG on firm performance. The authors segregated foreign-owned funds into two parts, especially FDI and PE. This paper examined heterogeneity in the form of FDI-funded and PE-funded firms, as no prior literature is available which has evaluated different sets of foreign funds simultaneously on CG. [ABSTRACT FROM AUTHOR]

This study contributes to the debate on the premature deindustrialization of developing countries by analysing the contribution of services to aggregate productivity and output growth within a Kaldorian framework. The article revisits Kaldor's Growth Laws and empirically tests them for a number of economic activities, including four service branches across 29 developing economies in Asia, Latin America and sub‐Saharan Africa over three decades (1975–2005). Panel data estimations are complemented by a shift‐share decomposition of labour productivity growth. The findings support the Kaldorian argument for both manufacturing and business services' contribution to aggregate productivity growth. Conversely, other services slow down aggregate productivity and output growth. The authors suggest qualifying and repositioning the debate on premature deindustrialization within a broader reflection on the opportunities for development linked to structural change. The analysis claims that these opportunities might include not only manufacturing sectors, but also business services. [ABSTRACT FROM AUTHOR]

Using a sample of 272 meta-observations drawn from 48 primary studies, this paper conducts a meta-analysis of the empirical literature that examines the impact of military expenditure on economic growth. We find that existing studies indicate growth-retarding effects of military expenditure. The results from the meta-regression analysis suggest that the effect size estimate is strongly influenced by study variations. Specifically, we find that underlying theoretical models, econometric specifications, and data type as well as data period are relevant factors that explain the heterogeneity in the military expenditure-growth literature. Results also show that positive effects of military expenditure on growth are more pronounced for developed countries than less developed countries. [ABSTRACT FROM AUTHOR]