External Sector Research Articles

GOVERNANÇA CORPORATIVA PARA A GESTÃO FINANCEIRA

The objective of this work is to highlight the importance of corporate governance for the financial management of business organizations. In this sense, a bibliographic research methodology was chosen. Corporate governance fosters the credibility of organizations by providing financial information that determines the decision-making processes of internal and external stakeholders. In this case, the financial manager who practices governance must demonstrate characteristics and competencies focused on ethics and transparency so that the organization's financial performance is achieved through a systemic vision correlated with the internal and external sectors of the companies, permeated by both good governance practices and the increase of investment capital. Thus, corporate governance plays an important role in contributing to organizations by minimizing risks, reducing indebtedness, and increasing the market value of companies that implement it, as it is seen as a factor of respect for those who invest their capital in a business aiming for the profitability of their investment.

The evolution of Japanese real GDP components in the time–frequency domain: The disappearance of the investment accelerator effect?

AbstractUnderstanding the interaction between national income GDP expenditure components is a key part of the study of the macroeconomics of any country. The general aim of this study is to explore this interaction between the GDP expenditure components in the time–frequency domain for the country of Japan, obtain some stylized facts and then compare them with those of the United States. The main result shows that the cyclical interactions between consumption and investment are typical of an “accelerator” effect and operate at several different frequencies, but that the several different cycles evident in the data phase out in the 1990s, once secular stagnation started to take hold. We hypothesize that Japan's investment drivers then changed to be dependent on the external sector by the 2000s. A secondary result is that Japanese fiscal policy appears to have been largely ineffective in terms of creating cyclical interactions with other GDP components.

Structural changes in the foreign sector and its consequences for the economy of Ukraine

The paper defines the essence and role of the external sector in the development of the national economy. It has been studied that the main endogenous and exogenous factors affecting the state and structure of the external sector of the national economy are globalization, technological progress, foreign economic policy and economic integration. The impact of the war on the development of the external sector of Ukraine's economy is substantiated. In particular, the main consequences of the impact of the war on the external sector of Ukraine's economy are the disruption of trade, the insecurity of investments, and the instability of the national currency. It was analyzed that during the period 2020-2022, the deficit of foreign trade in goods and services of Ukraine increased significantly, by more than two times. This negative trend was due to a significant reduction in the export of Ukrainian goods caused by military actions, which led to a decrease in production and complications with logistics. On the other hand, the import of goods to Ukraine decreased slightly. An important aspect is that the share of raw materials in the export structure is constantly growing. Only in the period of 2021-2022, the share of raw products in the export structure increased by as much as 13.3%, which is of a threatening nature in general for the national security of Ukraine. The structure of imports almost did not change, but the volume of imports also decreased, although significantly less than exports. Such a reduction in imports, especially in 2022, is dictated by the contraction of Ukraine's economy, primarily the level of consumption. Since at least 3 million people left Ukraine during the war, inflation and devaluation of the national currency increased, and the economy was partially transferred to military lines. It has been established that a chronic deficit in the balance of goods and services can lead to the accumulation of external imbalances and negatively affect the stability of the country's economy. The analysis of the external debt structure of the Ukrainian economy reveals both challenges and opportunities. While the high level of external debt poses risks to economic stability, it also highlights the need for prudent fiscal management, structural reforms and investment in key sectors. By solving these challenges and using its strengths, Ukraine will be able to manage the dynamics of external debt and build a sustainable and growing economy.

An Analysis of the Patterns of Economic Growth in the US

ABSTRACT This article seeks to investigate which demand component led and shaped the growth patterns of the US economy between 1954 and 2020 and comprehensive sub-periods relying on a proper allocation of imports. In doing so, it aims to establish whether the external sector can make a positive contribution to growth even in a context of negative net exports. Finally, it seeks to shed light on the reasons for higher or lower output growth, drawing particular attention to the engines of growth in each historical period. This article takes a novel approach in two ways: (1) it calculates and analyzes the decomposition of the contributions to growth for the US; (2) it divides the analysis into sub-periods and engines of growth, separately analyzing movements in the components of the multiplier, the dynamics of each component’s share with respect to GDP, and their respective growth rates. The empirical results show that the very low growth rates experienced between 2008 and 2020 are mainly explained by a minimal contribution of the government sector accompanied by weak demand from the private sector, highlighting the importance of growth-oriented public policies. These negative results have been only partially compensated by improvements in the external sector.

Greenhouse gas emission potential of tropical coastal sediments in densely urbanized area inferred from metabarcoding microbial community data

Although benthic microbial community offers crucial insights into ecosystem services, they are underestimated for coastal sediment monitoring. Sepetiba Bay (SB) in Rio de Janeiro, Brazil, holds long-term metal pollution. Currently, SB pollution is majorly driven by domestic effluents discharge. Here, functional prediction analysis inferred from 16S rRNA gene metabarcoding data reveals the energy metabolism profiles of benthic microbial assemblages along the metal pollution gradient. Methanogenesis, denitrification, and N2 fixation emerge as dominant pathways in the eutrophic/polluted internal sector (Spearman; p < 0.05). These metabolisms act in the natural attenuation of sedimentary pollutants. The methane (CH4) emission (mcr genes) potential was found more abundant in the internal sector, while the external sector exhibited higher CH4 consumption (pmo + mmo genes) potential. Methanofastidiosales and Exiguobacterium, possibly involved in CH4 emission and associated with CH4 consumers respectively, are the main taxa detected in SB. Furthermore, SB exhibits higher nitrous oxide (N2O) emission potential since the norB/C gene proportions surpass nosZ up to 4 times. Blastopirellula was identified as the main responsible for N2O emissions. This study reveals fundamental contributions of the prokaryotic community to functions involved in greenhouse gas emissions, unveiling their possible use as sentinels for ecosystem monitoring.

Heterogeneous deformation in fold and thrust belts induced by anisotropies in the ocean topography; the South Portuguese Variscan Zone example (SW Portugal)

The Variscan fold and thrust belt related with the South Portuguese Zone presents a SW forward propagation and the coeval development of synthetic folds and thrusts pervasive at all scales. Although several models have been proposed for their formation, the estimated strain pattern is more compatible with a push from the rear induced by the north-eastern subduction zone. Although there is a strong consistence concerning the kinematics of these Variscan structures, there is an important contrast of their geometries between the inner and the external sectors, where the very low dips prevails. Although, there are some previous models suggesting that the behaviour of the more external domains could be related with the interference between the undeformed sedimentary sequence of the upper plate with the active margin of the fold and thrust belt, independent evidence of this process is lacking. The realization of scaled analogue experiments concerning the Carboniferous evolution of SW Iberia Variscides, not only show that they could induced the flat lying major thrust of the external domains, but also emphasize their important role in the structural evolution of much of the fold and thrust belt.

The Role of Relationship between Money Supply and Exports in the Context of Economic Development through Increasing the Resilience of Foreign Exchange Reserves: Evidence from Selected Asian Countries

The importance of building foreign exchange reserve performance is the main requirement in safeguarding the economy in the global order from potential risks and threats originating from the external sector. This has become an important discussion in recent times, but several previous studies have not answered the urgency in building sustainable economic resilience, especially in countries that have economic experience with economic shocks caused by potential risks originating from the external sector. Ordinary-Least Square (OLS) analysis chosen to prove impact of financial stability and international trade on the growth and resilience of foreign exchange reserves as external liquidity for several countries in Asia during 1990 – 2020. The results of this research show that in the long term, both the money supply variable and exports as an independent variable have a positive and significant influence in increasing the resilience of the external liquidity performance of selected Southeast Asian countries. Our policy recommendations emphasize the importance of maintaining the resilience of foreign exchange reserves as external liquidity in order to increase economic resilience in the global economic arena. The government should provide the main focus in increasing policies by increasing the role of the external sector itself through international cooperation.

Targeting Debt in Pakistan: A Structural Macro-Econometric Model

Unsustainable debt levels pose serious economic risks, potentially leading to financial instability when repayments become challenging. This paper investigates the intricate dynamics of Pakistan's debt. It aims to assess its sustainability within a broader eclectic and dynamic framework of responsible fiscal management using macro-econometric analysis. A structural macro-econometric model (MEM) based on five blocks has been developed, i.e., Government, Price, Real, Monetary, and External sectors. Moreover, it comprises sixteen behavioral equations along with ten identities. The Generalized Method of Moments (GMM) has been used to estimate the system of behavioral equations and identities to solve the endogeneity problem, while the Guass-Seidel algorithm is used for model simulation purposes, including dynamic &amp; stochastic simulations. Forecasting has been done from 2023 – 2030. Moreover, three main policy variables, i.e., inflation, exchange rate, and government expenditures, have been given shocks to evaluate their impact on future external borrowing, interest payments along with imports, exports, and net foreign and domestic assets. The results revealed that an effective monetary &amp; fiscal policy must be designed to stabilize the economic conditions to manage external debt and repayments effectively. Moreover, to cope with unsustainable debt conditions, it is required to follow strict fiscal discipline via designing &amp; adhering to a budget that prioritizes inflationary controls and responsible spending practices.

ОБЛІКОВА СТАВКА НБУ: НАСЛІДКИ ТА ДОЦІЛЬНІСТЬ ПОДАЛЬШОГО ЗНИЖЕННЯ

Introduction. The purpose of the latest increase in the key rate from 10% to 25% in June 2022 is the following: protection of savings and income of individuals in national currency; increasing attractiveness of hryvnia-denominated assets; easing the pressure of excess liquidity on the foreign exchange market; strengthening the ability of the NBU to ensure exchange rate stability and streamline inflationary processes during the war. The increase in the key rate was also supposed to increase the yield on domestic government loan bonds and deposit certificates of the National Bank of Ukraine (NBU), rates on line deposits in the national currency, and the cost of servicing hryvnia loans for legal entities and individuals. Over a period of up to 15 months, the key rate remained at the same level of 25%. As the dynamics of inflation faded, the regulator started a cycle of gradual easing of monetary policy. allows to analyze the intermediate results of such a reduction. Reporting of the financial and external sectors of the economy published by the NBU and supervisory statistics as of December 1, 2023 allow to analyze the intermediate results of the reduction. Problem Statement. Determining the preliminary consequences and justifying the expediency of further gradual reduction of the NBU key rate aimed at overcoming the main problems of the monetary and credit system of Ukraine in the conditions of martial law. The purpose is the analysis of the main intermediate results of the gradual reduction of the key rate in Ukraine, which directly affect the performance of its key functions by the monetary and credit system of Ukraine, and justification of the most urgent state measures aimed at overcoming the current negative trends in the monetary sphere. Methods. General scientific and special methods are used: analysis, synthesis, grouping, description, comparison, theoretical generalization and abstract-logical. Results. The key preliminary consequences of the gradual reduction of the key rate in Ukraine are analyzed, in particular: the dynamics of refinancing attracted by banks, bank investments in NBU deposit certificates, investments of the regulator and banks in domestic government loan bonds (OVDPs), corporate and retail lending, bank deposits of households and corporations by terms and currencies, individual indicators of the foreign exchange market. Conclusions. The key positive consequences of the key rate reduction are: gradual recovery of banks' credit activity; reorientation of banks' investments from the purchase of NBU deposit certificates to increasing investments in OVDPs, which made it possible to stop emission financing of the budget deficit by the NBU; maintaining a positive yield on term deposits in the national currency, which stimulates the population to further increase the volume of bank deposits. Instead, the practice of sterilizing the "excess" liquidity of banking institutions through their purchase of overnight and three-month deposit certificates of the NBU continues and and provokes a further increase in the volume of excess liquidity of the banking system due to a fairly high level of profitability of this instrument. Expected conservation of moderate rates of inflation in the short term determines the expediency of a further gradual decrease in the level of the key rate, provided that the positive return on time deposits of the population in the national currency is maintained. To overcome the current negative trends in the monetary sphere it is advisable: to consider the possibility of reducing the yield of NBU deposit certificates to a level comparable to the yield of “short “ OVDPs; to ensure the synchronization of the yield of “new” time deposits of the population in the national currency by terms at the level of five state banks; to consider the expediency of resuming the practice of compulsory sale of part of the foreign currency earnings of exporters at the level of at least 50% during the period of martial law; to intensify the use of non-monetary methods and anti-inflation policy measures, taking into account the joint responsibility of the government and regulator for anti-inflation policy.

Transtension or transpression? Tectono-metamorphic constraints on the formation of the Monte Grighini dome (Sardinia, Italy) and implications for the Southern European Variscan belt

This work presents an integrated structural, kinematic, and petrochronological study of the Monte Grighini dome within the Variscan hinterland–foreland transition zone of Sardinia (Italy). The area is characterised by dextral transpressive deformation partitioned into low- and high-strain zones (Monte Grighini shear zone, MGSZ). Geothermobarometry of one sample of sillimanite-bearing mylonitic metapelite indicates that the Monte Grighini shear zone developed under high-temperature (~ 625 °C) and low-pressure (~ 0.4–0.6 GPa) conditions. In situ U–(Th)–Pb monazite geochronology reveals that the deformation in the shear zone initiated at ca. 315 Ma. Although previous studies have interpreted the Monte Grighini shear zone to have formed in a transtensional regime, our structural and kinematic results integrated with constraints on the relative timing of deformation indicate that it shows similarities with other dextral ductile transpressive shear zones in the Southern European Variscan belt (i.e., the East Variscan Shear Zone, EVSZ). However, dextral transpression in the Monte Grighini shear zone started later than in other portions of the EVSZ within the framework of the Southern European Variscan Belt due to the progressive migration and rejuvenation of deformation from the core to the external sectors of the belt.Graphical abstract

Pengaruh Thin Capitalization, Transfer Pricing Aggresiveness, Multinationality, Besaran Aset Tak Berwujud Dan Pemilihan Auditor Terhadap Penghindaran Pajak Pada Perusahaan Indeks Idxnoncyc

Indonesia is one of the developing countries in the Southeast Asia region and is known as a country with abundant natural resources. The results of this natural wealth stretch from Sabang to Merauke which makes Indonesia. Apart from that, based on Indonesia's geographical location, which is flanked by two continents, namely the Asian continent and the Australian continent, and flanked by two oceans, namely the Indian Ocean and the Pacific Ocean, making Indonesia the world's maritime axis. Due to Indonesia's strategic geographical location, it is not surprising that Indonesia is one of the countries visited by many other countries, whether just for traveling or to start various companies. The number of foreign companies established in Indonesia continues to increase. The conditions are certainly beneficial for the country because it can reduce unemployment and increase the amount of state income in the internal and external sectors. One of the internal revenues for the Indonesian state is through taxes.

Implementation Of Balance Score Card To Improve Employee Performance At PT Gaya Makmur Tractors

To evaluate a company's success, performance evaluations must be conducted using acceptable performance assessment criteria. Performance appraisal also plays a vital role because it seeks to encourage employees to achieve efficiency and effectiveness in a company. Performance assessments help multinationals evaluate global human resource efficacy for optimization and improvement. It can be said that the Balanced Scorecard can help companies communicate the company's business strategy and as a company goal to achieve the vision and mission. Assessment of performance measurement through the balanced scorecard is an important factor in the company. Apart from being used to assess a company's success, performance measurement can also be used as a basis for determining a company's reward system, for example, to determine employee salary levels and appropriate rewards. Management can assess previous times using business efficiency data as the instrument. Traditional performance assessment, which primarily takes the financial sector into account, is currently what is most frequently utilized in businesses. Measuring performance with this system causes the company's orientation to only short-term profits and tends to ignore the long-term survival of the company. Performance measurements that focus on the financial sector are unable to estimate the performance of the company's intangible assets and intellectual assets (human resources). Additionally, this method of assessing achievement is less capable of entirely driving the organization on a better path and pays less consideration to the external sector and its history. Data analysis was carried out descriptively qualitatively. Using a deductive approach, the conclusion is reached by moving from the general to the specific, particularly those that are connected to the research issue, namely Smart Performance from an Islamic Human Resource Management Perspective. According to the findings, PT Gaya Makmur Tractors was urged to prepare for the worldwide marketplace by changes in performance activities. The key to competition in the global market is total quality which includes emphasis on product quality, cost or price quality, service quality, timely delivery quality, and other satisfactions that continue to develop to provide continuous satisfaction to customers. A crucial element of the business is performance measurement or assessment. Apart from being used to assess a company's success, performance measurement can also be used as a basis for determining a company's reward system, for example, to determine employee salary levels and appropriate rewards. Management can also use company performance measurements as a tool to evaluate the previous period

The recovery and resilience plan on the long-term care system. Towards a deinstitutionalization?

After the crisis caused by Covid-19, among other socioeconomic problems, the fragility of the organizations that make up the Spanish Long-Term Care System was revealed. These events prompted the Recovery and Resilience Plan (RRP). The aim of this study is to estimate the socioeconomic impact on Long-Term Care (LTC) of the investment delivered by the RRP. In addition, to fulfil our main aim, a secondary and necessary aim was to calculate the most current social accounting matrix (SAM) of the Spanish economy. We analyse the components of the demand linked to the RRP investment allocated to LTC, and subsequently, based on Input-Output methodology, we calculate a social accounting matrix (SAM) of the Spanish economy to estimate the overall economic return. The results obtained using the SAM model proposed herein evidence the multiplier effect of the RRP invested in LTC. Every euro allocated to the RRP generates 4 euros in income for Households, Firms and the External Sector, 3.4 euros in industrial output, and returns 0.6 euros in taxes and social contributions to the Government. This also entails creating 26,410 direct and indirect jobs as well as 10,059 induced ones. Given the severe recession scenario triggered by the consequences of COVID-19, the results of this study highlight the significant multiplier effect that RRP investment may generate to alleviate the downturn in the Spanish economy and, more specifically, in the Spanish LTC System.

The Progression of Trade Policy Reforms within the Context of National Economic Reforms

The primary goal of this chapter is to outline the key points of the trade policy reforms that have taken place in India since 1991, focusing on the changes that have occurred both before and after the reforms. Specifically, a comprehensive analysis that aims to comprehend the key components of the trade policy reform initiatives. Using the many metrics of India's international trade performance throughout the Reform years, as well as the direction and makeup of India's imports and exports, the movements in India's external sector have been examined in depth.

EXTERNAL RESILIENCE OF THE ARMENIAN ECONOMY: DEVELOPMENT AND ANALYSIS OF A COMPOSITE INDEX

This study develops and applies a novel composite External Resilience Index for the Armenian economy, employing Principal Component Analysis (PCA). The index provides a comprehensive assessment of five dimensions of the external sector and identifies periods of resilience gain and loss from 2001 to 2023. The findings reveal that current and financial account balances are the most significant factors influencing economic resilience, with notable impacts during the 2008-2009 financial crisis and the 2020 COVID19 pandemic. Additionally, the ratio of international reserves to short-term foreign debt is highlighted as a critical component of resilience. The study highlights the role of international reserves as a buffer for the economy, and the analysis revealed that the reserves are at an adequate level. The study underscores the importance of both external and domestic resilience and suggests that enhancing FDI and diversifying exports can improve economic stability and resilience to future shocks.

A Comparative Study of India’s Foreign Trade in Pre and Post Reform Period

Foreign trade has been playing a vital role in the economic progress and prosperity of every country. In modern days foreign trade has assumed an immense prominence and substance for economic development of a country because of interdependence of economies, increasing specialization and joining regional cooperation. In 1991, the major program of economic reform were introduced which emphasize on external sector wherein the protective tariffs were decreased, changes into foreign investment and the restrictive import licensing system was relaxed and simplified. After the New economic reforms, India’s foreign trade has undergone substantial changes, volume of trade rose up and composition of trade was also frequently changed. The main objective of the paper is to study the trends of India’s foreign trade pre and post new economic reforms in India. The entire data for the present study is collected from the secondary sources. The collected data has been analyzed by using Paired t-test from SPSS software package and graphs. The findings of this paper said that there is positive relationship between economic reforms and India’s foreign trade. A push has been given to the exports but analyzes says that the increasing rate of imports is higher in comparison to the increasing rate of exports.

THE CONSEQUENCES OF A FORCED MIGRATION SHOCK FOR THE ECONOMY OF A COUNTRY AT WAR: THE CASE OF UKRAINE

The full-scale war in Ukraine, which started with the Russian invasion in February 2022, has led to an unprecedented forced migration crisis not seen in Europe since the Second World War. The current Ukrainian forced displacement, which has no analogues in terms of its scale, geographical coverage, quantitative indicators and timeframe, represents an exceptional case to study in terms of its impact on the economic environment of the country of origin. The purpose of this paper is to identify and analyse the short- and long-term effects of the forced migration shock on the economy of a combatant country in the context of a full-scale war in Ukraine. Methodology. To address the task of classifying the economic consequences of a forced migration shock from the perspective of the country of origin, the publication uses the matrix diagram method. The matrix developed is based on two key characteristics that indicate the durability of the impact (short-term or long-term) and the nature of the impact (explicit or implicit). The analysis of the short-term and long-term effects of forced migration on the Ukrainian economy is based on macroeconomic statistics (key macroeconomic indicators, labour market indicators, public finance indicators, external sector statistics) in the pre-war period, the war period since 2022, and forecasts for 2024-2025. Results. Unlike regular labour migration, forced migration has a predominantly negative impact on the economy of a country of origin, both in the short and long term. The explicit effect of forced migration on the economic system of the country of origin is to damage the labour market. The implicit effects include a decrease in remittances, a reduction in production facilities, an increase in the budget deficit and regional budget imbalances, an increase in the level of external and internal debt, increased dependence on international aid, a decrease in consumption, investment and GDP growth rates. Practical implications. The practical results provide a basis for further research into policy measures to address the negative aspects of increasing migration processes in Ukraine, particularly with a view to the country's future post-war reconstruction. Value/Originality. The matrix developed to assess the impact of the forced migration shock provides a deeper understanding of the multifaceted effects of this phenomenon on the socio-economic system of a country at war.

Formation of the Relationship between the Exchange Rate and the Investment Yield of Pension Assets in Kazakhstan: Causes and Consequences

The efficiency of pension asset management, reflected in their performance, determines the stability of the funded pension system of Kazakhstan, and also has the potential to significantly affect the budget process, since the state guarantees recipients a positive real return on their pension savings and compensates from the budget for losses incurred during periods when inflation exceeds the nominal rate of return. The need to ensure a positive real return on pension assets managed by the National Bank of Kazakhstan determines not only the high relevance of the issue of investment management itself, but also other aspects that affect the return, including changes in the exchange rate of the Kazakhstani tenge. The subject of the article is the impact of the tenge exchange rate on the profitability of pension assets, which can be very significant, since it forms one of the main components of investment income — income from foreign currency revaluation. This influence can also act as a factor in the formation of the tenge exchange rate during periods when the real return of pension assets decreases due to the negative situation in the financial markets and high inflation, and this thesis reflects the scientific novelty of the article. The assessment of the hypothesis about the formation of the relationship between the exchange rate of the Kazakhstani currency and the investment yield of pension assets is the aim of this work, and the identification of the main causes and consequences of this phenomenon is its task. Comparative and correlation analysis of indicators of investment return of pension assets, changes in the exchange rate of the Kazakhstani currency, parameters of the external sector and others were used as research methods. The results of the analysis confirm the existence of a relationship between the indicators of profitability of pension assets and the tenge exchange rate, and allow us draw the conclusion that this profitability has an indirect impact on the formation of the Kazakhstani currency exchange rate over the past few years, which has been characterized by non-standard dynamics in the context of a significant improvement in the external economic environment.

قياس العلاقة التوازنية بين متغيّرات IS-LM-BP ومؤشّرات الاستقرار الاقتصادي في نيجيريا

The concept of economic balance occupies great importance in most of the world's economies, as it is the axis around which the discussion of economic thought revolves in various economic schools. Economic thought is in a state of continuous development and works to provide a model through which the general balance in the overall economy can be determined despite the difficulty of finding common relationships between all... Markets and the possibility of describing them in an integrated applied model that allows determining the equilibrium at the same time. Therefore, this study came to clarify the possibility of determining the total equilibrium through the IS-LM model, which works on equilibrium by combining the commodity market IS on the one hand and the money market LM on the other hand. The BP model was also added, which works to achieve balance in the external sector. Therefore, in this study, we can achieve balance internally and externally through the IS-LM-BP model, as the study addressed the impact of this balance that can be achieved on some indicators of economic stability. By determining an equilibrium interest rate and income, which is the final result of a set of economic relations.

Internal Evaluation of External Sector Statistics Capacity Development in Select African Countries

Internal Evaluation of External Sector Statistics Capacity Development in Select African Countries