Economic Policies In Order Research Articles

Does foreign direct investment influence manufacturing sector growth in Middle East and North African region?

PurposeThis study empirically assessed the influence of foreign direct investment on the manufacturing sector growth in the Middle East and North African region using panel data of 18 countries covering the period of 1975–2017.Design/methodology/approachThe study employed Levin et al. (2002) test (LLC) and Im et al. (2003) panel unit root test. Furthermore, Kao’s cointegration test was applied to examine the long-run relationship between the variables. Both the Dynamic OLS and Fully modified OLS were used in estimating the short-run relationship.FindingsThe results of the DOLS and FMOLS indicate that both inward and outward FDI influence the manufacturing sector growth positively. This shows that much of the manufacturing sector growth in the MENA region is driven by both inward and outward FDI. Our findings made a strong new proposition that aside from the negative influence proposed by Stevens and Lipsey (1992), outward FDI could also have a positive influence on the manufacturing sector of a country through effective utilization of domestic raw materials that are produced locally for production of goods in a foreign country.Practical implicationsMENA countries should concentrate more on making policies that will encourage the effective utilization of domestic resources for outward foreign direct investment in other countries of the world as it has the capacity to boost the manufacturing sector growth. Also, policies that will attract more inflows of FDI in the region should be encouraged. Both inward and outward FDI should be considered as an integral part of MENA economic policy in order to spur the manufacturing sector growth.Originality/valuePrevious empirical studies on the relationship between FDI and manufacturing sector growth have focused much on the influence of inward FDI. Thus, very little attention has been paid to the contribution that the outward FDI makes to the growth of the manufacturing sector of the host country. Our empirical study focused on the influence of both inward and outward FDI on the manufacturing sector growth with specific emphasis on the MENA region that remains the center of attraction of inward FDI and a source of inward FDI to most nonoil producing developing and developed countries given the oil-rich nature of the region.

Impact of Trade Openness on Foreign Direct Investment in Sub Saharan Africa Countries

No country in the world that is stay isolated and become developed without influence of other countries in one way or the other. Countries in the world are working hard through various economic policies in order to attract more Foreign Direct Investment (FDI). Therefore any attempt to find out the influence of FDI is paramount important. The paper seek to look into the impact of trade openness on Foreign Direct Investment in Sub-Sahara African Countries for the period of 2000 to 2017. The study employed panel data analysis, including the panel unit root test, panel co integration test and fully modified least square method (FMOLS). The findings reveal that, all the variables were cointegration of order one and having a long run relationship. More so the results show that trade openness was positive and statistically significant in influencing FDI in the region, while corruption was negative and statistically significant in influencing FDI in the region. The findings suggest that, the existing trade policies should be amend by governments through various legislative arms of government to give room for inflow of capital and new technological advancement from developed countries where these FDI comes from to those countries under study. Also Governments in the region should create more polices that is used to reduce the level of corruption in the system through improvement of the existing institutions that fight corruption to a standstill.

MEASURE THE IMPACT OF MONETARY POLICY ON ECONOMIC GROWTH IN SUDAN FOR PERIOD 1970-2018

The objective of this study was to measure the impact of Monetary Policy on Economic Growth in Sudan. It based on the following hypotheses: The most critical factors impacting Economic Growth(GDP) in the long- and short-run: exchange rate, inflation, Money supply, and Lending cost . There was a statistically significant relationship between Economic Growth and: exchange rate, inflation, Money supply, and Lending cost . The study used a descriptive approach and the analytical statistical method to construct the model and Eviews8 Program for data analysis. The Data were collected from the Bank of Sudan for period 1990-2018. Using An autoregressive distributed lag (ARDL) approach was to estimate the model in the short and long run. Findings were as follows that there was a statistically significant relationship between the Economic Growth (GDP) and its factors in the long- and short-run. The money supply had a positive and statistically significance impact on the GDP growth. The exchange rate had a positive e and statistically significance impact on GDP growth. The inflation rate coefficient is negative, and statistically significance impact on GDP growth and Lending cost coefficient was a negative and statistically insignificant impact on GDP growth. Finally, correction coefficient values had high speed in overtaking shocks. The study recommended reducing inflation rate through appropriate economic policies in order to activate the effect of Total Investment Lending cost rate index. KEYWORDS: Inflation, Exchange Rate, ARDL, Growth, Co-integration.

Effective employment of customs instruments in the context of the latest integration agreements

The relevance of the research topic is explained by the negative impact of integration agreements, in particular the free trade ones, on the list of instruments that the state can use to implement its economic policy in the field of foreign economic activity, in particular - on the list of customs instruments. There is a steady global increase in international trade, coupled with the tendency to gradually reduce trade barriers by most countries. Strengthening integration processes negatively influence the breadth of influence and the list of customs instruments of economic regulation. Given the socio-economic and environmental risks that arise in the absence or lack of state regulation of economic processes, it is important to ensure the effectiveness of those instruments that may still be used under the terms of integration agreements. Additionally, the attention to the customs instruments is increasing in the context of the «economic patriotism» that is becoming popular in USA, Europe and other countries, together with the criticism of the neoliberalism. The coverage of the issue in the works of domestic and foreign scholars is sporadic in nature and is usually tied to the problem of a particular market or industry in a particular agreement. In the last years before the ratification of the Association Agreement between Ukraine and the EU, as well as in the first years after, T. Ostashko studied the potential effects of that agreement on the instruments of regulation of certain sectors of the economy of Ukraine. From the point of view of generalization of the practice of state regulation of economy in the European integration processes, it is possible to mention V. Olefir and O. Mitchenok which covers the experience of Bulgaria, Poland, Romania, Africa, America and the Middle East. The above studies do not consider separate institutes of state regulation of the economy, in particular customs instruments, at a deeper level, focusing on the direct economic processes and the impact of increasing the freedom of trade turnover on national production. The research objective is to analyse the essence and impact of international economic processes on customs instruments for the implementation of the state economic policy in order to develop proposals for the effective use of these instruments. The theoretical and empirical methods of cognition in their dialectical combination are used in this work. In the analysis of existing integration processes, statistical and economic methods, in particular, comparisons, graphic constructions, as well as methods of descriptive and comparative statistics are used. Comparative methods, methods of analysis, synthesis, generalization, and also the system method are used to determine the ways of efficient use of customs instruments. system method is used. The dynamics of the development of integration processes and the influence of their various types on the customs instruments both in general and in separate branches are revealed in the framework of this research. The international experience of using customs instruments in these conditions is investigated and the most effective ones are highlighted. The results of this research can be applied in the process of formulating the state economic policies, in particular in the context of international economic activities, food security, protection of the national agri-food market and its elements, support of the national manufacturers. The research has demonstrated that in the framework of the WTO effective applied tariffs may be effectively utilized by approximation to the bound tariffs. Within the framework of bilateral and multilateral agreements, the institute of tariff quote is an effective tool, due to flexibility and potential directions of application, Increasing the country's participation in regional and bilateral trade agreements, albeit with the risk of creating a complicated regulatory «stew» and trade intervention, leaves a sufficient number of customs tools for effective implementation of the state regulation of economy.

Cultural traits and productive transformation: Colombia in international perspective

Drawing from the consideration of cultural values as an explanatory factor of economic development, this article correlates the cultural traits reported by Hofstede’s Cultural Dimension model with the results in terms of industrialization for Colombia and selected cultural clusters. By contrasting industrialization-oriented policy choices with the evolution of export composition and industrial competitiveness indicators, we conclude that guided by a short-term, materialistic, nepotistic, and intolerant to uncertainty orientation, Colombian economic authorities and elites have helped in the prolongation of an underdeveloped industrial structure by favoring closed groups through extractive institutions, while Asia, instead of adopting ‘western values’, has drawn upon a long-term orientation to implement risky but sound, coordinated, and convergent social and economic policies in order to industrialize.

SUPPORTING THE DEVELOPMENT OF BUSINESS ENVIRONMENT THROUGH ECONOMIC ORDER POLICY

The goal of this study is to analyse the impact of economic order policy on the development of the business environment, as well as to learn about the private sector’s current assessment of the existing business environment, the problems and challenges encountered by the private sector, and the areas on which the efforts ought to be focused. Study team grouped and leaded by me has examined the attitudes of members of the Business Association of Georgia (BAG) towards all major elements of the business environment. The aim of my study is to use the results to devise BAG’s future advocacy campaigns. It is planned to present the results of the study to all major parties involved in devising economic and business policies to ensure that they are familiar with the private sector’s vision and are able to take it into account when working on economic policies.

Correction of institutional disproportions – the key to change the role of Ukraine in the redistribution of the world economic forces

The article deals with the structure of the domestic economy, the dynamics of the structure of exports and imports to determine the role of Ukraine and the prospects for its change in the process of redistribution of world economic forces. The resource component with a low level of product processing continues to dominate Ukraine's export potential. Two thirds of the country's exports are vegetable products, mineral products and precious metals. Conducted analysis determined the international specialization of Ukraine's economy as agriculturally orientated. The share of export articles which are the products with a low degree of processing is still significant, which prevents the creation of high added value within the economy of Ukraine. The country needs not only technological changes, introduction of production with high added value, but also fundamental changes in economic policy, which would take into account the improvement of the structural, institutional and financial component and ensured implementation of an innovative model of the country's development, increase of the competitiveness of Ukraine's economy in the world market. There are undeniable advantages such as a well-developed system of education, a significant scientific basis, and they are in general represent much more significant innovation potential than that of other countries with similar GDP. Therefore, in order to increase the competitiveness of the Ukrainian economy in the world market, Ukraine needs not only cardinal technological changes, but also the improvement of economic policy in order to preserve and develop the main achievement of the country - human capital. The aim of the study is to develop and improve the taxation system as an integral part of the institutional structure of the country, for the preservation and development of the human capital of the country as a driving force to change Ukraine's place in the redistribution of world economic forces. Increasing the innovative human capital and the effectiveness of its usage within the domestic economy will lead to the growth of intellectual and innovative potential of Ukraine. The practical significance of the results of the study is the possibility of their use during the formation of an appropriate legislative and regulatory basis.

Social Effects of Economic Crisis: Risk of Exclusion. An Overview of the European Context

Sustainability is a complex concept. It only can be achieved from a global perspective, where social, economic and environmental issues are all key factors for achieving the goal. This paper is focused on the importance of social sustainability and, as a consequence, the importance of avoiding each and everyone’s risk of poverty and exclusion as due to the recent crisis effects. Nevertheless, this crisis resulted in higher inequalities and put a lot of people at risk of poverty, even in “developed” countries. Through a statistical and econometric analysis, some of the key factors to which the European Union should aim to avoid unsustainable scenarios are analysed. A regression, factorial and cluster analysis is carried out and this leads to conclude that the labour market is key in promoting economic policies in order to achieve social sustainability.

Analysis of regional development disparities in Ukraine with fuzzy clustering technique

Disparities in the development of regions in any country affect the entire national economy. Detecting the disparities can help formulate the proper economic policies for each region by taking action against the factors that slow down the economic growth. This study was conducted with the aim of applying clustering methods to analyse regional disparities based on the economic development indicators of the regions of Ukraine. There were considered fuzzy clustering methods, which generalize partition clustering methods by allowing objects to be partially classified into more than one cluster. Fuzzy clustering technique was applied using R packages to the data sets with the statistic indicators concerned to the economic activities in all administrative regions of Ukraine in 2017. Sets of development indicators for different sectors of economic activity, such as industry, agriculture, construction and services, were reviewed and analysed. The study showed that the regional cluster classification results strongly depend on the input development indicators and the clustering technique used for this purpose. Consideration of different partitions into fuzzy clusters opens up new opportunities in developing recommendations on how to differentiate economic policies in order to achieve maximum growth for the regions and the entire country.

Održivi rast i regionalna konkurentnost privrede srbije

Backwardness in economic development in comparison with EU and countries from region, expressed especially after big crisis from 2008, demands a change of country's economic policy in order to create assumptions for a long-term sustainable development and competitiveness' increase in regional and world contexts. Having in mind results realized so far, there is a real danger that current economic policy will stabilize country on a low level of GDP, high unemployment rate, with low wages and bad working conditions in a large number of enterprises, in domestic or foreign ownership. Such situation is a result of non-existence of adequate strategy of economic development in transitional period. The goal of paper is to point that new economic policy should be based on support to sectors which most of its added value create through internationalization of business and which have faster growth of revenues on foreign than on domestic markets, such as IT sector, agro-business, medium-tech developed industries.

Public and Private Partnership and Business Actors in Political Processes Concerning Military Issues

Purpose: The article researches the actual issues of developing partnership and cooperation between the state and private business in matters of production and modernization the military-industrial complex of Russia. The main object of the research is the Russian NAVY. The subject of the research is the comparison of the Russian and US NAVY modernization in the context of public and private partnership. Design/Methodology/Approach: The authors used a wide range of methodological tools in the course of the study. The method of economic analysis, the method of structural analysis, the statistical method and the method of mathematical comparison were used. Findings. Studying the role of business actors in the national rearmament programmes in Russia the authors revealed such key indicators as economic viability and financial efficiency of programme implementation. A comparative analysis of budget and private funding of the similar US programme was conducted and statistical data supporting the main findings of the study were introduced. Practical Implications: The development of cooperation between business and the MIC at the state level should go along the path of creating conditions for public-private partnerships (PPPs) - a set of organizational, legal, financial and economic relations and joint actions of the state and private business aimed at achieving the goals of the state economic policy in order to address socially significant tasks on mutually beneficial conditions. Originality/Value: The authors’ conclusion that state’s financial and economic policy in the field of defense and modernization of the domestic defense industry has all chances to become the locomotive of the country’s industrial, scientific and technological development gives new horizons for discussing the most appropriate rearmament strategy.

Application of Quick Switching System-1 with Single sampling Plan as reference plan through Minimum Sum of Risks in Determining Economic Ordering Policies under Permissible Delay in Payments

Conventionally, all Economic Ordering model tacitly assumes that the immediate payment with the shipment of the products. But, in practice, the vendor may allow permissible delay in payments to the buyer. Quality management with minimized cost is the crucial factor for organization’s growth. Inspecting 100% of the products are time-consuming and costly especially when it involves destructive testing or inspection cost is huge. Acceptance sampling plan by attributes provides an effective solution to minimize the cost and consumes less time. Quick Switching System-1with two intensity of inspection is ease to apply as it enables instantaneous switch between normal and tightened inspection depends on the quality of the product. With more reliable products normal inspection is employed and vice versa.QSS-1 plan with minimum sum of risks carries another advantage of reducing the consumer and producer’s risk. With the application of the QSS-1 through minimum sum of risks on the EOQ model with permissible delay in payments buyer and vendor gets minimized cost, minimized risk and less time consuming process.

Examining Key Macroeconomic Factors Influencing the Stock Market Performance: Evidence from Tanzania

This study reflects on assessment of the micro economic factor hindering the growth of Dar es Salaam stock exchange market. The study intends to determine the factors influencing the development of Dar es Salaam stock exchange market. Four constructs based on the theory such as money supply exchange rate, inflation rate and interest rate were considered. The study followed the positivism approach where variables were analyzed quantitatively The multiple regression model is used to relate variables and stock exchange performance at Dar es salaam stock market. Findings in this study revealed that, four investigated variables in this study, one which is interest rate is found to have the hypothesized negative relationship with Dar es Salaam stock exchange index. The inflation rate, exchange rate and money supply were statistically insignificant explaining the variability of Dar es salaam stock exchange market. Although the research recommended that, the government should manage well the micro economic policies in order to give confidence to our investors and attract new investors. Researchers can use the study findings and explore on more variables that were not used in this paper, such research can even use different modeling techniques to investigate the variables in the study.

Determination of Economic Ordering Policies under Trade credit with Application of Zero Acceptance number Single Sampling by Attributes involving Destructive Testing, Inspection Errors

The International Scientific Research Organization for Science, Engineering and Technology (ISROSET) is a Non-Profit Organization; The ISROSET is dedicated to improvement in academic sectors of Science (Chemistry, Bio-chemistry, Zoology, Botany, Biotechnology, Pharmaceutical Science, Bioscience, Bioinformatics, Biometrics, Biostatistics, Microbiology, Environmental Management, Medical Science, Forensic Science, Home Science, Library Science, Material Science Military Science, Physical Science, Physical Education Science, Educational Science, Fisheries, seed technology, Agriculture, Forestry Science, Mathematics, Physics, Statistics and Geology/Earth Science), Computer Science, Engineering and Information Technology, Commerce, Management, Economics Sociology and Social Science.

Substitutability between production factors and growth. An analysis using VES production functions

This work investigates the economic growth problem of establishing a relation between the elasticity of substitution between production factors, capital and output per-capita levels when dealing with a non constant elasticity of substitution production function. Starting from a discrete-time setup, some definitions of elasticity of substitution associated to an attractor are proposed and a general method to measure it is suggested. Thanks to this methodology a government may select a proper economic policy in order to reduce production costs without decreasing the capitalisation trend of the economy. The method proposed is applied to the Solow’s type growth model with differential savings using a Variable Elasticity of Substitution (VES) production function with constant returns to scale. It is found that when shareholders save more than workers or the elasticity of substitution is higher than one, a country characterised by production functions with higher elasticity of substitution experiences higher capital and output per-capita equilibrium levels. On the other hand, when the elasticity of substitution is lower than one and workers save more than shareholders, an ambiguous relation between elasticity of substitution and asymptotic dynamics is shown.

The Determinants Factors of Balance of Payments: An Investigation from Sudan through the Period 1980-2016

This paper investigates the determinants of Sudan balance of payments using annual data on Balance Of Payments (BOP), foreign debt (ED), Exchange Rate (EX), inflation (INF), Gross Domestic Product (GDP) during the period (1980 - 2016). The paper elaborates the problem regarding the impact of foreign debt on the balance of payments. The paper built on the fundamental assumption that the foreign debt linked to a positive relationship with the balance of payments by running VECM Approach. Results of the study indicate that there is a direct correlation between the balance of payments and foreign debt, and an inverse relationship between the balance of payments and all of the inflation, gross domestic product and exchange rate during the fore mentioned period. The paper recommends that Sudan should not totally depends on foreign aid in solving its economic problems which entails to transfer big amount of the national product to meet the commitments towards those foreign countries, the need for coordination between macroeconomic policies and domestic economic policies in order to increase output domestic product, economic policies are functioning to reduce the ratio of foreign debt and the reduction of inflation and bring about stability in the exchange rate which leads to improving the balance of payments to be adopted by Sudan.

РАЗВИТИЕ БЕЗНАЛИЧНОГО ОБРАЩЕНИЯ И ПЛАТЕЖНОЙ ИНФРАСТРУКТУРЫ В РОССИЙСКОЙ ФЕДЕРАЦИИ

Ensuring the stability and development of conditions for the implementation of non-cash transfers has become one of the main tasks of Russia’s economic policy in order to achieve full integration into global financial relations over the past ten years. There are still many questions and problems that impede the country’s transition to a new level of money transfers between citizens and overcoming mistrust of the population towards electronic instrument of payment. The article examines the main changes in non-cash circulation, and changes in the state of the infrastructure to ensure the availability and continuity of electronic payments in the territory of the Russian Federation.

Economic Policy as a Determinant of Development and More Efficient Business Operation in the Republic of Srpska

The Republic of Srpska needs a developing economic policy in order to make it a key determinant of more efficient business operation. The present economic policy is far from being like that, as it is more recession like given that it does not determine development yet. The economic policy of the Republic of Srpska has failed to perform its function years and especially for the incoming 2016, when, in addition to previous scope of welfare, which was defined as a target, it set to itself an additional goal to also finance pensions from the Budget in the coming period. The RS Government has gone even further and has even praised in public that in 2017 the Public Health Service would also be financed from the Budget, which will most certainly place an additional burden to an already strained Budget of the Republic of Srpska, whose 1/5 has been regularly replenished by using resources of International Monetary Fund. The Republic of Srpska, unlike many other countries worldwide, has abandoned Bismarck social insurance system and has adopted the Beverage system which is rarely applied worldwide. Such occurrence appears only when an economic system of a parent state cannot finance social rights out of its operations. Unfortunately, it has happened to the Republic of Srpska. Thus defined objectives and economic policy created in this way would not provide any positive growth rate, higher employment level, abatement of public debts nor cutting the deficit in any country, let alone in the RS. The said arguments will additionally contribute to poor living standard of citizens i.e. the citizens would experience even worse conditions than today, while only a small number of them would live in abundance. Such poor condition was not only caused by the global economic and financial crisis, but the culprits should be sought among those who have poorly planned, managed and spent scarce financial resources of the RS. Economic policy of the Republic of Srpska should spawn certain indicators, which would become a determinant of development and better business operation. It would considerably benefit to greater wealth of the Republic of Srpska and provide better living standard of its citizens.

Валютна політика України: чверть сторіччя невизначеності

The article deals with the basic elements of the exchange policy during Ukraine's independence – including monetary sovereignty, the degree of currency convertibility, the exchange rate regime, the exchange control mechanism and cooperation with the international monetary fund. The author provides a detailed analysis of the problem of selecting the appropriate direction of the exchange policy and points to the continuing uncertainty about this choice, and hence the lack of efficiency of the exchange policy in general. Ukrainian practice makes you pay attention to such a characteristic of the exchange policy as its focus on the own currency, i.e. the introduction of legal rules governing the relationship arising through use of the national currency in the currency operations (foreign exchange transactions between residents and within non-residents). Given this, the exchange policy should be formed on the basis of the principles adopted in other areas of the economic policy in order to ensure the integrity of a strategic approach to achieve the goals of a comprehensive economic policy (including exchange relations). The exchange policy should provide coordination and reasonable relationship of different components of the economic policy, in both internal and external areas, including the distinct interaction between national and international institutions of the monetary regulation. Only the presence and the use of the above analytical framework of monetary policy – in the form of professionally prepared and politically coherent laws, concepts, strategies and action programs in various fields of economy and policies – could provide certainty, consistency and effectiveness of the state monetary policy. Unfortunately, Ukraine was forced to implement its exchange policy in the absence of almost all previous conditions, which caused the uncertainty of the state monetary policy as regards its key elements, such as a general orientation (goal), the degree of currency convertibility, the exchange rate regime, foreign exchange market and currency control institutions. In addition, the most negative way on the foreign policy reflected the general uncertainty about the economic policy and overall strategy for economic development. Such uncertainty caused a chain reaction of uncertainty as to some important elements of the exchange policy.

Effectiveness of State Aid for Investments In The Process of Economic Growth: Turkish Case

Abstract. Economic growth concept has important place in the field of economics since it is started to studied as a social science. Particularly after economic and social destruction has been deeply perceived during the Great War, by the sides who were centered and most suffered, and then in the postwar period in 1929 when global economic crisis peaked. Therefore, in the upcoming years the governments had developed new economic policies in order to solve the increasing economical problems. They support various policies in order to ensure sustainable economic growth and development to individuals and legal entities by providing, sometimes redistributing, public funds. Usually, those funds are tax and insurance premium payments relieves, transfer expenditures, trade and agricultural subsidies, and investment supports. This research investigates effectiveness of the governments aids on economic growth, specifically by focusing investment supports, and to determine what direction and rate it takes under growth theories. In this research, the gross added value is dependent, and economical and social ones are selected as independent variables. And then they are included to the model, which focuses on Turkey by classifying regions as developed and less developed. The model uses panel data analysis. The findings are supports that, in Turkey include both developed and less developed regions, Department of Economics’ subsidized investment documents and fixed investment subsidies have positive effect on the gross added value. Keywords. Economic Growth, State Aids, Investment, Turkey. JEL. D92, E20, F43, N10, O16.