Country Macroeconomic Policies Research Articles

Perfection of the tax system and its impact on macroeconomic policy in Georgia

In determining the macroeconomic policy of the state, in order to fulfill its goals and objectives, taxes and perfecting the tax system play a key role and represent one of the main instruments of the economic and financial policy of the state and can be considered as the leader of the country's macroeconomic policy. The aim of the paper is to discuss and analyze the role of the tax system and its subsequent reformation in the macroeconomic policy of the country, and in particular in the part of the fiscal policy, because through the tax and fiscal policy, the government of the country makes decisions in which direction it wants to develop the country's development strategy and define the macroeconomic policy. In terms of the sustainable development of Georgia and the implementation of the country's macroeconomic policy, the concept of economic development and the implementation of correct tax reforms in this regard, in the direction of perfecting the tax system, are important in the short and long term. Based on this, issues related to reforming and perfecting the tax system are one of the most important challenges of the country's economic policy and macroeconomic policy.

Evaluation of China's maritime power construction index and policy textual analysis

PurposeThis research establishes an evaluation index system and calculation method for the China's maritime power construction index (CMPCI). It has conducted practical tests on the progress of China's maritime power construction since the 12th–13th Five-Year Plans. This paper conducts a phased study on the construction of China's maritime power based on the CMPCI evaluation results; it expands the relevant achievements in the research field of quantitative research in China's maritime power construction. The verification results are consistent with the actual situation.Design/methodology/approachFully reflect the guiding role of national marine policies in the new development stage, guide the transformation of China's marine management model. The CMPCI is a quantitative evaluation of the overall development level of China's maritime power construction over a certain period of time. The CMPCI in this article aims to comprehensively reflect the changes in the construction of China's maritime power, strives to cover various fields it encompasses. This study focuses on objective statistical data analysis, supplemented by multisource data, to objectively and fairly measure the level of CMPCI.FindingsOriginality/valueIt fully reflects the highlights of marine science and technology, social democracy and strategic emerging industries. This research dynamically quantifies the trajectory of China's maritime power construction, synthetic reflecting the country's macroeconomic policy guiding function. Guiding the transformation of the marine resources utilization, marine economy development, marine scientific research and marine rights and interests maintenance and effectively serving the decision-making needs of the government.

Improving the methodology for assessing models of public debt management in Kazakhstan

One of the macroeconomic instruments of state activity is the public debt. For the stable functioning of the state, the fulfillment of all strategic goals and the fulfillment of obligations assumed, the state attracts borrowed funds, distributing them to finance the relevant budget expenditure items. The state of public finances is influenced by numerous parameters of the country's macroeconomic policy, including, of course, the level of public debt, the policy of the state in terms of its management. In world practice, the use of government borrowing is widespread to ensure a balance of budget revenues and expenditures. State borrowing is inherent in all countries of the world, and this is the norm in current realities, and the Republic of Kazakhstan is no exception. The amount of public debt varies significantly from country to country. In some states, this is a significant ratio of public debt to GDP, while in others it is low. In this regard, the question of effective management of public debt and the impact of public debt on the economic security of the country logically arises. Effective public debt management assumes that the state has the ability to control the volume of its debt obligations, the main parameters of financial stability, such as the stability of the stock and financial markets, regulate economic processes, as well as establish the necessary norms and rules for the functioning of public debt.

Modeling the volatility of exchange rate and international trade in Ghana: empirical evidence from GARCH and EGARCH

PurposeThe volatility of exchange rate has generally been sighted as a primary cause for various shocks and instability in international trade of Ghana as witnessed over the years and most especially in recent times. Hence, owing to the increasing trade levels between Ghana and Ghana's global trading partners, the study aims to investigate if the trade–exchange rate volatility nexus in Ghana supports the positive, negative or ambiguous hypotheses?Design/methodology/approachThe study investigates the effects of Ghana's exchange rate volatility on international trade by designing import and export equations to estimate both short- and long-run specifications of the effect and employing the multivariate generalized autoregressive conditional heteroskedasticity (GARCH) with Baba, Engle, Kraft and Kroner (BEKK) specification developed by Engle and Kroner (1995) as a further check for the robustness of the findings. Monthly data between 1993 and 2017 on the real effective exchange rates of Ghana's trade with 143 trading partners were taken as the series for modeling the volatility using GARCH andexponential generalized autoregressive conditional heteroskedastic (EGARCH) models.FindingsThe empirical results show that the volatility of exchange rate negatively impact export performances in the Ghanian economy. On the other hand, there was no sufficient evidence to support the observed positive effect of exchange rate volatility on imports, as the effects were only significant at 10% level in the long run. Thus, it is concluded that the finding cannot confirm a relationship between volatility and import. Thus, the results present differences in the direction of the effect of exchange rate volatility on imports and exports in the context of the Ghanaian economy.Research limitations/implicationsConsidering the fragility of the Ghanaian economy and Ghana's macro-economic indicators, the study points at the crucial need for more integration of well-informed trade policies within the country's macro-economic policy framework to contain the impacts of exchange rate volatility on trade performances.Practical implicationsThe study contributes to literature by scope and method. More specifically, empirical studies have failed or provided little evidence uniquely on the Ghanaian economy's reaction to exchange rate volatility on the country's imports and exports. Additionally, most of the existing empirical studies measure exchange rate volatility using the standard deviation of the moving averages of the logarithmic transformation of exchange rates. This method is criticized because the method is unsuccessful in capturing the effects of potential booms and bursts of the exchange rate. The authors' study circumvents for these highlighted pitfalls.Social implicationsThe study contributes to literature by scope and method. More specifically, empirical studies have failed or provided little evidence uniquely on the Ghanaian economy's reaction to exchange rate volatility on the country's imports and exports. Thus, the study chat a course for socio-economic dynamic of Ghanaian economy.Originality/valueThe study contributes to literature by its scope and method, as extant empirical studies have provided little evidence specifically on the Ghanaian economy's reaction to exchange rate volatility. Additionally, most of the existing empirical studies measure exchange rate volatility using the standard deviation of the moving averages of the logarithmic transformation of exchange rates. This method is criticized because of the method's inadequacies in capturing the effects of potential booms and bursts of the exchange rate. The study thereby essentially circumvents for these highlighted pitfalls.

THE MECHANISM OF FISCAL POLICY

The purpose of this article is to study fiscal policy, which is one of the methods of regulating the country's macroeconomic policy. Theoretical approaches of scientists to the definition of the term "fiscal policy" are investigated. The contents and principles of the functioning of the mechanism of fiscal policy are disclosed. Method. Theoretical approaches to the definition of mechanisms and discrete components of the fiscal policy of the state and its criteria characteristics have been developed. The research has been based on the use of a systematic approach to the consideration of fiscal phenomena, on the fundamental principles of economic theory, systems theory, theory of finance, theory of taxes, etc. Results. It is observed that the budget deficit and the national debt are closely linked: the increase in the budget deficit leads to an increase in the national debt. But the absolute magnitude of the budget deficit, and therefore of the public debt, does not provide enough information for economic analysis. It is necessary to know what processes the budget deficit is serving, what changes in the reproduction cycle it reflects. It is also very important to measure changes in public debt in relation to changes in GDP. In addition, the tax burden is increasing as a result of these changes. Value/originality. It is determined that along with the expected changes in the methodology of calculation and procedure of tax payment, taxpayers are also concerned about the question of changing the tariff grid by the total amount of taxes due in absolute terms and in relation to the volume and resultant indicators of production activity (revenue, profit). An innovative tariff policy has been proposed and opportunities for using non-traditional agricultural insurance products have been revealed. Recommendations to improve the fiscal policy of the state have been made. The conceptual platform for harmonizing the mechanism of fiscal policy regarding economic entities is substantiated.

No Need to Throw in the Towel Yet: The Case for the Revival of South African Textile and Clothing Industries

Despite the unexciting outlook of the textile and clothing industries in South Africa today, the strategic relevance of the sub sector in terms of developing country macroeconomic policies makes it imperative that radical interventions be explored in order to save it from total collapse. For instance, the sub sector has one of the longest supply chain that includes production of raw materials; spinning, weaving, or knitting; finishing; design; sewing; distribution; and marketing. Another factor that should make the sub sector attractive to policy makers is the fact that it absorbs a high proportion of unskilled workers and is generally labour intensive not to mention the fact that it is also female friendly. The paper demonstrates that the industry is worth governmental support and active intervention and should not be left to the mercies of the international market forces that presently threaten to wipe it out. DOI: 10.5901/mjss.2014.v5n7p11

Macro-Prudential Regulation from the Perspective of the Financial Network

From the perspective of financial network stability analysis achieved by studying the network formed with linkages of individual financial institutes, this article aims to delve into the monitoring, warning, and analyzing of the systematic risk of the financial system as a whole, which is the key to drive macro-prudential regulation forward within the regime of existing financial regulations. Through our analysis we've achieved the following. First, a new way of depict of the structure of financial system's network and a practical method of macro-prudential regulation is proposed. Second, by analyzing the stability of the banking network, it can be seen that after the explosion of the economic crisis, the country's macro-economic policies to improve the stability of China’s own financial network produced positive results. Third, through an initial empirical analysis of the national banking network, the country's inter-banking network displays a structural characteristic of the coexistence of important nodes and locally closely-connected clusters.

Social change through integrated social and economic development in South Africa: a social welfare perspective

Thirteen years into democracy, South Africa is still facing deep-seated social and economic inequalities. The country's macro-economic policy fosters economic growth, which is essential for socio-economic development, but at the same time it also highlights the challenges required for development, which will benefit the majority of the population in South Africa. In line with a neo-liberal capitalist macro-economic policy, in which the role of the state is scaled down, the Government's Accelerated and Shared Growth Initiative calls on social partners to achieve social change through integrated social and economic development. Social work, as one of the partners in social change, is well positioned to take up its role as facilitator of social reform in the new democracy. The relationship between developmental social welfare services, social security and The Expanded Public Works Programme will be explored within the context of an integrated social–economic development plan for reducing actual poverty on th...

Taking CO2 emissions into a country's productivity change: The Asian growth experience

A country's macroeconomic policies have two basic objectives: to provide its citizens with a means to make a better living and a preferable environment. For the past decades, accompanying its fantastic economic growth, fast-developing Asia has become one of the major contributors to the increase of global carbon dioxide emissions. This paper analyzes productivity growth of ten Asian countries, namely, China, Japan, the NIEs and the ASEAN-4, by examining their outputs from economic performance and environmental impact standpoints. Productivity growth and its components are calculated using the Malmquist index. There appears to be a widening gap between the productivity growth trends without/with CO2 emissions of the ten Asian economies. This implies that the factor of productivity could be over-emphasized at great cost to the environment. A cross-country comparison analysis, considering CO2 emissions, shows that the productivity of China and ASEAN-4 deteriorated while the productivity growth of Japan and NIEs performed much better.

The use of managerial inputs by small-scale construction enterprises in South Africa

This study has confirmed that serious deficiencies in managerial skills exist among SSCEs in South Africa. The study also reveals, however, that there is a notable minority of owners of SSCEs who have, and use, appreciable levels of managerial skills in their work. There was a keen willingness among nearly all the owners of SSCEs covered in the study to learn successful managerial approaches to construction work. To adequately equip SSCEs to perform their expected role in the growth and development of the South African economy, it is imperative that the country's macro-economic policy should ensure a steady and sustainable supply of construction work. Also, an enabling environment should be created with an appropriate legislation to encourage the establishment and accreditation of training programmes and institutions that will impart managerial skills to owners of SSCEs.

Exchange Rate Policy Reforms: Recent Initiatives

As the world economy gets increasingly integrated, the management of exchange rate assumes a critical role in the country's macroeconomic policy. Tarapore argues that monetary authorities are duty bound to maintain a desired exchange rate through appropriate market intervention. The main problem in exchange rate management in India has been the appreciation of real effective exchange rate. According to Tarapore, in the absence of transparency in exchange rate management, the transmission of signals from the central bank to the forex market are muted and counter-productive. A more transparent exchange rate policy is more likely to generate greater confidence among the market participants and thereby minimize the need for frequent market intervention.

Macro-monetary effects on agricultural prices: the case of Greek agriculture

The macroeconomic effects on agricultural prices in the Greek economy and, in particular, differences in prices paid and received by farmers (cost-price squeeze) are examined employing integration and cointegration analysis. A Johansen cointegration test between prices paid and prices received by farmers supports the presence of cost-price squeeze, since non-cointegration between the two price indices cannot be rejected. In other words, prices paid by farmers respond more than prices received by farmers during inflationary periods and hence affect their parity ratio. Multivariate cointegration tests indicated that forces outside agriculture can explain the non-cointegration between farm input and output prices. These forces are monetary macro variables through the country's macroeconomic policy, such as money supply, the general price level and the domestic product.