The role of foreign capital flows in health finance

Innovation in Health Care: Time for a Gut Check

Зв'язок між потоками капіталу і сальдо бюджету становить важливий елемент дослідження фіскальної політики країн інтеграційного утворення, включно з особливостями взаємодії його найбільших країн та країн умовної "периферії". Насамперед доречно порівняти залежність від потоків капіталу та обмежень платіжного балансу країн Центрально-Східної Європи і Балтії, оскільки ці країни відрізняються за рівнем доходу, особливостями політики обмінного курсу та підходами до євроінтеграційного процесу. Припускається, що з підвищенням ступеня економічної інтеграції підсилюється залежність від потоків капіталу та обмежень платіжного балансу, що порівняно самостійно впливає на проведення фіскальної політики. Водночас поглиблення інтеграції призводить до уніфікації найбільш загальних параметрів фіскальної політики, як сальдо бюджету та рівень державного боргу, що полегшує гармонізацію фіскальної політики на рівні інтеграційного утворення. На підставі річних даних 1990-2018 рр. проаналізовано залежність сальдо бюджету країн Центральної і Східної Європи, Південної Європи і Балтії від припливу капіталу і ставки LIBOR (англ. London Interbank Offer Rate). Показано, що залучення іноземного капіталу призводить до погіршення сальдо бюджету країн європейської "периферії", але вплив зникає з урахуванням циклу ділової активності, що засвідчує проциклічність потоків капіталу. Для нейтралізації надмірного припливу-відпливу капіталу, що так чи інакше впливатиме на фіскальні показники, необхідні заходи координації фіскальної політики на обох рівнях – національному і наднаціональному.

This study examines the twin deficits in Malaysia. The Dickey and Fuller (DF) and Phillips and Perron (PP) unit root test statistics show that all variables examined are non-stationary. The Johansen cointegration test statistics show that there is long-run relationship between external balances and its determinants includes budget balances. Moreover, increases in budget balances will lead to increases in external balances and increase in investment will lead to decreases in external balances. The results of the fully modified ordinary least squares (FMOLS) estimator demonstrate about the same conclusion of the relationship between external balances and budget balances as the conclusion of the Johansen cointegration method. Consolidated budgets will lead to healthy external balances, which are important for achieving sustainable economic growth.

Through this research paper, we aim to do a standard analytical study of the macroeconomic effects of the budget deficit policy in Algeria for the period (1980-2020), in addition to analyzing the course and performance of the budget deficit policy in Algeria with an analysis of the response of economic variables to shocks in the budget balance. For this, the descriptive analytical approach and the standard approach were used, while the Autoregressive Rays (VAR) model was used, with the help of the Eviews12 program, to process the data.
 And it concluded that there is a one-way causality from the budget balance towards the external balance and from the economic growth rate, total domestic savings and private consumption spending towards the budget balance, while there is no causality between the budget balance and the variables: inflation rate, interest rate, fixed capital formation and total credit provided to the private sector. After assessing the relationship between the budget deficit and its economic effects, it was found that there is a positive impact of the budget balance on: private consumer spending, credit provided to the private sector, economic growth rate, interest rate, external balance, total domestic savings, while it was found that there is a negative impact of the budget balance on Fixed capital accumulation and inflation, which is the same as what was found through the analysis of variance.

An empirical analysis of the nexus between external balance and government budget balance: The case of the GIIPS countries

The purpose of this article is to study the occurrence of the Lucas paradox in the region of Central-Eastern Europe. According to the research conducted by Robert Lucas (1990), the direction of the international capital flows is different than the neoclassical theory suggests. The capital does not flow from the richer, high-income economies to the poorer, but rather stays in those with the higher capital resources or flows to the other ones with similar level of GDP. The paper verifies whether the paradox appears in the region, in the way that it examines the impact of the GDP on the FDI inflows. Additionally, the study implements few basic models with factors that may potentially resolve the puzzle of the capital flows. The study method is based on panel data estimations, initially using pooled OLS, and subsequently using fixed or random effects models as appropriate. The examined economies are the member states of the European Union, from the region of Central-Eastern Europe, and the examined years are 2000-2018. Based on the literature, and the widely emphasized need for differentiating between the types of international capital flows, the article focus is on the foreign direct investment only, as they constitute large part of the whole global capital flows. Results of the research confirm the presence of the paradox in the region in the examined period. Even though the estimation of the additional models helps to remove the effects of the paradox for the region, it does not fully explain under which circumstances the neoclassical theory would be applicable. None of the applied models reverses the sign of the GDP variable to negative, keeping it statistically significant at the same time.

The Future of International Capital Flows

Effects of interest rate policy on external balances

Successful structural adjustment programs are a stated goal of many developing country governments. International financial institutions such as the World Bank and the International Monetary Fund have made structural adjustment a major target of lending policy. The U.S. government enshrined structural adjustment as the centerpiece of its recommendations to indebted countries in the Baker and Brady plans. Despite its importance, however, there is not yet a consensus on a definition of structural adjustment or on an appropriate measure of success in structural adjustment.' In this study I propose a definition and measurement of structural adjustment, suggest a methodology for identifying those policies conducive to successful structural adjustment, and implement these measures and methodologies for a panel of 74 developing countries over an 11-year period. Structural adjustment is often put forward in the rhetoric of free markets. However, as with its predecessor, the stabilization program, its roots are more likely found in the integration of developing countries in the world economy. Stabilization programs arose because of inconsistency between internal policies and external balance in developing countries. In external balance, current account deficits are offset by sustainable private and official capital flows. As documented by W. Cline and S. Weintraub and by J. Williamson, stabilization programs were implemented in countries characterized by nonsustainable capital flows and were designed to reestablish external balance in the short run through demand management even at the cost of economic growth.2 Structural adjustment programs, by contrast, are based on the mediumand long-run need to maintain external balance and, in addition, to achieve positive economic growth and development.3 Structural adjustment is thus a reallocation of resources to compete best in and take

HC3 - The Relationship Between Medical Innovation And Health Expenditures

Health financing produce a broad range of healthy life expectancy (HLE) disparities. In West Africa, limited research exists on the association between health financing and HLE at ecological level during a consecutive period of time from the spatial perspectives. This study aimed to determine the existence, quantify the magnitude, and interpret the association between health financing and HLE. A Dynamic Spatial Durbin model was used to explain the association between HLE and health financing level and structure during 1995-2019 in West Africa. Spatial spillover effects were introduced to interpret the direct and indirect effects caused by health financing level and structure on HLE during the long and short terms. Spatial dependence and clustering on HLE were observed in West Africa. Although the overall level of total health spending, government health spending, out-of-pocket health spending, and development assistance for health (DAH) increased from 1995 to 2019, government health spending per person experienced a declining trend. Out-of-pocket health spending per total health spending was the highest among other sources of health financing, decreasing from 57% during 1995-1999 to 42% during 2015-2019. Total health spending and out-of-pocket health spending affected HLE positively and negatively in the long term, respectively. Government health spending and prepaid private health spending per person had positive effects on local and adjacent country HLE in the short-term, while DAH had negative effects on the same. The short-term spatial spillover effects of government health spending, DAH, and prepaid private health spending per person were more pronounced than the long-term effects. Spatial variations of HLE existed at country-level in West Africa. Health financing regarding government, non-government, as well as external assistance not only affected HLE disparities at local scale but also among nearby countries. Policymakers should optimise supportive health financing transition policies and narrow the national gap to reduce health disparities and increase HLE. Externalities of policy of those health financing proxies should be took into consideration to promote health equity to improve global health governance.

IntroductionCapital plays a crucial role in the development of regional economies, especially in low-income regions where it acts as a primary driver of economic growth. Efficient capital flow is essential for optimizing resource allocation and facilitating the development of integrated capital markets. This passage introduces the topic of capital, capital flow, and capital market integration and highlights their significance in regional development.MethodsTo gain a comprehensive understanding of capital flow and integration in the Yangtze River Delta region, the researchers conducted a connotative analysis. They constructed indicators from various aspects, including social fixed asset investment, bank capital flow, government transfer payments, social financing structure, and foreign direct investment. By utilizing these indicators, the researchers aimed to assess the current situation and identify bottlenecks related to capital flow and integration. Additionally, they drew on experiences from foreign capital flow and integration development to enrich their analysis.ResultsThe analysis revealed several primary bottlenecks affecting capital flow and integration in the Yangtze River Delta region. These bottlenecks include an unsound banking management system, the presence of government competition and administrative barriers, and shortcomings within listed companies. The results highlight the specific challenges that hinder the smooth functioning and integration of capital in the region.DiscussionTo promote the development of capital flows and integration in the Yangtze River Delta region, the researchers propose various recommendations. These suggestions include promoting the development of listed companies, establishing a robust banking management model, improving relevant government policies, and optimizing the investment environment. These recommendations serve as important guidelines for policymakers to enhance capital flow and integration in the Yangtze River Delta city cluster. Furthermore, they emphasize the need to strengthen financial supervision and improve institutional mechanisms within the three provinces and one city comprising the region.

This chapter examines the volume and composition of capital flows in South Africa, distinguishing between net flows of foreign (non-resident) capital and net flows of domestic (resident) capital. Two key themes are the response of investors to capital account liberalization and the role of domestic capital markets in influencing the composition of flows. Section 2 assesses exchange control reform in South Africa, emphasizing the gradual nature of the liberalization strategy and the priority given to macroeconomic and financial sector stability. Section 3 examines the composition of foreign capital inflows, in particular the high levels of inward portfolio investment supported by developed local capital markets. Section 4 focuses on outward investment by South African residents in the form of institutional investors, companies, and individuals. Section 5 concludes with an assessment of the implications of the changes in the financial account since 1994 for the external balance sheet and for macroeconomic policy.

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Global demographic change and international capital flows: Theory and empirics