Macroeconomic Perspective Research Articles

Remittances Growth in Developing Country: A Macroeconomic Perspective

The importance of the flow of workers’ remittances in the economies of developing countries during the last few decades or so cannot be ignored at the face changing global order where most of the economies in the world are transforming themselves to the call of globalization and transmuting towards more open markets with freer flows of goods and factors across borders. The macroeconomic impacts of remittances flows on developing economies are not well understood. The paper is an attempt to understand the impact of inward remittances flows on per capita GDP growth in Bangladesh during 1974-2006. This study find that the growth effect of remittances is negative at first but becomes positive at a later stage- a strong evidence of a non-linear relationship. This could be due to unproductive use of remittances in the beginning followed by more productive utilisation. Remittances positively affect per capita GDP growth in Bangladesh when the complementarity between remittances and financial development is incorporated into the analysis.

La incidencia de la inversión extranjera directa en los hidrocarburos en el departamento del Meta

<p>El artículo identifica la incidencia de la Inversión Extranjera Directa –IED- en proyectos de hidrocarburos en Colombia en el 2015, desde la perspectiva macroeconómica al relacionar la IED con la dinámica económica del departamento del Meta y desde una perspectiva microeconómica, mediante la comparación del desempeño institucional de proyectos con IED y aquellos que carecen de esta, en este caso se comparan Ecopetrol y Pacific Exploration and Production Corporation<strong> -</strong>Pacific&EP-, el primero con inversión nacional y el segundo con IED. El tipo de investigación es descriptivo y las herramientas para obtener información son las encuestas de desempeño institucional –EDI- del Departamento Administrativo Nacional de Estadística –DANE- y encuesta aplicada a funcionarios de Pacific&EP. Los resultados indican que a nivel macroeconómico la IED influye significativamente en la economía departamental. A nivel microeconómico no existe evidencia que la IED aporte mejor al desempeño institucional que la inversión nacional. Es posible concluir que la diferenciación en el desempeño institucional no se presenta por el origen de la inversión y sería conveniente profundizar en las diferenciaciones por tamaño de la empresa asociados a su tipo de inversión. De otra parte en el diseño de políticas públicas se debe tener en cuenta la participación ciudadana para conocer las problemáticas sociales y potencializar el impacto de la actividad petrolera en el bienestar social. <strong></strong></p><p><strong> </strong></p>

Syntheses of sustainable supply networks with a new composite criterion – Sustainability profit

This study proposes a new concept and a new metric for multi-criteria evaluation of sustainable systems. The new metric, termed “sustainability profit”, is composed of economic, environmental and social indicators. Since all of these are expressed by monetary terms, the different criteria are now merged, and a multi-objective optimization problem can be reduced to a single-objective one. The new concept for measuring sustainability is based on micro-economic (company’s viewpoint) and on wider macro-economic perspectives (combined government’s and company’s viewpoint). The concept and metric presented are illustrated by three examples of supply networks including a large-scale biorefinery supply network. The obtained results give the insights into sustainable technologies from the overall sustainability viewpoint, and also evaluate the stimulations from governments in the form of subsidies and taxes for deployment of (un-)sustainable systems. The results also indicate that this metric provides good compromise solutions between economic, environmental and social pillars of sustainability.

Technology advance and the carbon dioxide emission in China – Empirical research based on the rebound effect

At present, technology advance is the greatest contributor to the carbon dioxide mitigation. However, the real effect of technology advance on mitigation is worth further studying due to the existence of rebound effect (RE). A key issue is how to quantify the relationship between technology advance and carbon dioxide emission accurately. This paper figures out a comprehensive and modified framework involving around the RE of carbon emission from the macroeconomic perspective. Using this framework, this paper quantitatively evaluates the relationship between technical change and carbon emission based on the data of 30 provinces in China. It is founded that: (1) the carbon RE is about 10–60% in Chinese provinces; (2) the RE of carbon emission differs among the regions in China; (3) carbon reduction and environment issues should be solved step by step regionally in China. (4) According to our results, a reasonable control on total energy consumption and fossil-energy pricing adjustment, should be taken as the supplementary policy in China; at the same time, carbon financing, carbon trading and other aspects of institutional innovation should be taken into account at the appropriate time.

Kapitał terytorialny w rozwoju regionów

Unia Europejska poszukuje sposobów na dynamizację procesów rozwoju poprzez terytorializację swoich polityk. Teza ta znajduje potwierdzenie szczególnie w ostatnim dziesięcioleciu w ewolucji polityki regionalnej, innowacyjnej i przemysłowej. Dowodzi tego między innymi consensus w zakresie wiodących kierunków rozwoju i wdrażanie takich koncepcji jak na przykład: Place based policy, Smart specialization, Regional Innowation System czy Clusters. Gospodarki krajów europejskich są bardzo silnie skorelowane ze swoją sferą społeczną. Potencjał rozwojowy zawsze był mocno uzależniony od takich kategorii jak: kapitał społeczny, zaufanie i normy, instytucje formalne i nieformalne, kultura i tradycja. Stąd po licznych próbach poszukiwania sposobu na wzrost konkurencyjności i innowacyjności Unii Europejskiej, obecnie mamy do czynienia z polityką poszukiwania czynników wzrostu na poziomie lokalnym, poprzez odkrywanie tym samym potencjału regionów w przestrzeni globalnej. Należy przez to rozumieć, iż w warunkach zglobalizowanej gospodarki opartej na wiedzy, z perspektywy makroekonomicznej i wskaźników zagregowanych, trudno jest dostrzec unikalność, wyjątkowość podkreślającą rzadkość a tym samym konkurencyjność czynników rozwoju. Dopiero zmiana poziomu obserwacji, niczym obniżenie wysokości lotu, pozwala dostrzegać różnice, a przede wszystkim doceniać atrakcyjność warunków otoczenia (atrakcyjność: inwestycyjną, lokalizacyjną, instytucjonalną). Nie oznacza to jednak, iż do tej pory regiony były „ukryte”, raczej nie chciały, nie umiały, nie widziały potrzeby, w końcu nie miały warunków, aby ujawniać swój potencjał na zewnętrznych rynkach, pokazywać swoje zasoby. W tym kontekście celem pracy jest wykazanie dlaczego potencjał lokalnych środowisk (terytoriów) może mieć znaczenie globalne i konsekwencje dla polityki makroekonomicznej. W szczególności chodzi o wyjaśnienie istoty i znaczenia kapitału terytorialnego w procesie rozwoju oraz identyfikację warunków prowadzenia polityki opartej na jego wartości.

Public Policy, Innovation and Economic Growth: An Economic and Technological Perspective on Pakistan’s Telecom Industry

At a time of rapid technological advancements in every field, Pakistan must develop a comprehensive strategy for harnessing science and technology to promote economic growth on a sustained basis. In recent decades, successful economies have moved away from factor accumulation models of economic growth to productivity led growth that is underpinned by technological advancements and innovations. Using the endogenous growth theory as a framework of analysis, the paper will provide a macroeconomic perspective on the importance of technology and innovation for sustainable economic growth. We argue that public policy must be geared to generate robust growth by encouraging investment in research and development (R&D) and human capital. The paper will conceptualize the role of technology in the process of economic growth and identify policy areas that can be instrumental in promoting technological modernization and innovations.

Law and Macroeconomics: The Law and Economics of Recessions

In this Article, I offer a macroeconomic perspective on law that reshapes the microeconomic perspective that currently dominates law and economics. I argue that 1. The economy works one way in ordinary economic conditions, in which supply capacity determines output, and a different way in deep recessions, in which demand for spending determines output. 2. Because the economy functions differently in deep recessions than in ordinary times, a law causes one set of effects in deep recessions and a different set of effects at other times. 3. Because the same law has different effects at different times, law should be different in deep recessions than in other times. Specifically, law should do more to promote spending in deep recessions than in ordinary economic conditions. Because the stakes of deep recessions are so high (tens of trillions of dollars in lost output, countless lives impaired, and political upheaval), I argue that the (significant) costs associated with introducing macroeconomics into law are worth bearing.

Financial Assessment of Mini-grids Based on Renewable Energies in the Context of the Ugandan Energy Market

In Uganda the low national electrification rate of around 15% and a very poor rate of progress in rural electrification, from an estimated 1% in 2001 to around 7% in 2013 are identified as major challenges for economic development and poverty reduction. In this context, the objective of this scientific paper is to analyze the economic feasibility of mini-grids based on renewable energies in the context of the Ugandan energy market as an off-grid electrification solution. In doing so, financial feasibility of mini-grids is also taken into consideration from macro-economic perspectives and risk management aspects. It acknowledges that off-grid electrification can be seen as mandatory to reach the ambitious national electrification targets and offering a huge opportunity in a so far almost untapped market, while at the same time still facing various financing- and market barriers in Uganda. By an executed case study, the paper simulates the level of subsidies required to reach economic feasibility, revealing that it can only be achieved with high level of subsidies involved due to the currently difficult financing conditions. Therefore, innovative financing recommendations are given by suggesting a layered fund as a multi-level financial support mechanism. Given the appropriate incentives, it can facilitate a subsidy phase-out for mini-grids in regards to a sustainable public sector engagement until self-sustaining market conditions are reached. It could attract investors by offering eligible investment conditions such as appealing return rates on decipherable risks by a reallocation between different shareholder layers, including public sector funding as a safety caution, while at the same time gradually transferring grant funding to revolving funding support step by step.

Do economic crises lead tourists to closer destinations? Italy at the time of the Great Recession

AbstractThis article studies how distance influences the choice of tourists about their holiday destination during times of economic crisis. In particular, we analyse the specific case of domestic tourism flows across Italian regions during the 2000–2012 period by estimating a gravity model. Our estimations yield the effect of distance year by year. The output suggests that distance gained weight during the years of the Great Recession and therefore confirms, from a macroeconomic perspective, that tourists tend to choose closer destinations in times of crisis.

Behavioral Economic View: The Episode of Won/USDollar Exchange Rate during the Crisis

Background/Objectives: This paper is motivated by recent evidence that the relation between Korean Won-US Dollar exchange rate and US federal funds rate is time-varying unlike conventional belief on the relation. Methods/Statistical Analysis: We employ the rolling window approach to figure out the influence of the crisis on the relation between the Won/ US-Dollar exchange rate and the US interest rate. The rolling window approach is used in time series analysis especially when the available sample period is short. This approach can be applied in order to check the predictive performance using a finite number of windows within a considered time span. Findings: The evidences resulting from the rolling window approach show that the Won/US-Dollar exchange rate and the US interest rate appear to be negatively correlated in some periods and positively correlated in others. Those time-varying patterns in the relation between exchange rate and interest rate are difficult to be explained from the traditional view of uncovered interest parity. On the other hand, behavioral macroeconomic perspectives provide various explanations for theoretically unconventional finding in the context of rational expectation formation. Application/Improvements: Our empirical observation remains with the conjecture that investors’ fear near the crisis may lead to some anomaly. The latter hypothesis should be further studied by the behavioral macroeconomic view.

Information and Communication Technology for SMEs' Competitiveness

Competitiveness of a firm is its capacity to achieve its targets. These targets are likely to be expressed in a variety of terms depending on the context (Barney 2002). Within a macroeconomic perspective, a competitive firm develops and sustains a level of performance that contributes to the Gross Domestic Product (GDP), employment opportunities, and the wealth of the people. From an entrepreneurial perspective, a competitive firm needs to survive in the market and to achieve market share and profitability. This paper deliberates regarding the theory of competitive advantage and discusses the role of Information and Communications Technology (ICT) for augmenting SMEs' competitiveness.

Developing the port hinterland: Different perspectives and their application to Shenzhen Port, China

The management and expansion of the port hinterland is at the core of ensuring the competitiveness of modern ports. Considering the impact of the global supply chain and regional economy development, this study proposes different perspectives to analyse the development of the port hinterland, and applies these perspectives to Shenzhen Port in China. In accordance with the changing nature of a port's function, we view hinterland development from physical, logistics, and macroeconomic perspectives, and analyse the influencing factors from the shippers' viewpoint in terms of three driving forces: spatial, value, and organizational. We find that the influence of these driving forces and their relevant strategies differ from these three perspectives. For Shenzhen Port to develop its hinterland sustainably, its geographical boundaries should be extended in both directions (i.e. inland-bound and foreland-bound), and the structure of container throughput needs to be optimized. Some relevant strategies in this regard are proposed.

Multiple-criteria Evaluation of Quality of Human Capital in the European Union Countries

(ProQuest: ... denotes formulae omitted.)IntroductionQuality of human capital (QHC), both at microeconomic and macroeconomic level, is currently considered as the main growth factor in developed economies. The process of creation of high value added in the reality of global competitive knowledge-based economy is not possible without constant effort to improve the QHC. Thus, from the long term perspective effective policies supporting multifactor development of the QHC in the context of knowledge-based economy make the condition for keeping global competitiveness of every developed economy. In the European economy it has been stated as one of the most important aims of the Europe 2020 strategy (Balcerzak, 2015, pp. 190-2010; European Commission, 2010; Hobza & Mourre, 2010). However, the economic role of the QHC is not only crucial form the perspective of long term macroeconomic development. For example in the short term it influences the situation on the labour markets (Muller-Fraczek & Pietrzak, 2011, pp. 205-209; Pietrzak & Balcerzak, 2016a; Balcerzak (ed.), 2009; Balcerzak & Zurek, 2011, pp. 3-14), the economic and social cohesion of regions and cities (Wilk et al., 2013, pp. 124-132; Pietrzak et al., 2014, pp. 135-144) or countries fiscal sustainability (Balcerzak et al., 2016, pp. 483-496; Balcerzak and Rogalska, 2016, pp. 271-282). Thus, the research on the QHC is important both form long and short term perspective.In the EU all governments implement national strategies that should support improvement of the QHS. In this context, it is necessary to compare countries' results, which can be useful for pointing the best practices and effective policy guidelines in the field. Thus, the main objective of the article is to provide a multiple-criteria analysis of the QHC in the EU countries at macroeconomic level. In the research the special attention is given to the results obtained by new member states of the EU. The research was based on the Eurostat data for the years 2001-2012. Furthermore, the analysis was done for two sub-periods 2001-2007 and 2007-2012. This approach enables to provide some insight on the probable influence of the global financial crisis on the changes of the QHC in the European economy.Additional operational aim of the paper is to provide input data on the QHC that can be used in econometric modeling of macroeconomic determinants of development and growth of European economies (see Pietrzak & Balcerzak, 2016b; Balcerzak & Pietrzak, 2016a, 2016b; Balcerzak & Pietrzak, 2015, pp. 93-106; Balcerzak, 2009, pp. 711-739). The article is a continuation of previous research of the author in the field (Balcerzak & Pietrzak, 2016c; Balcerzak, 2011, pp. 456-467).1. Data and Selection of Diagnostic VariablesThe QHC analyzed form macroeconomic perspective must be treated as complex multivariate phenomenon. It should be quantified with application of taxonomy tools and multiple-criteria decision analysis (MCDA) methodological approach (see: Balcerzak & Pietrzak, 2016d; Kunasz, 2009, pp. 35-48; Pawlas, 2009, pp. 21-31; Pietrzak & Balcerzak, 2016c; Wronowska, 2009, pp. 32-45; David, & Goddard Lopez, 2001).In the case of every multiple-criteria analysis the most significant problem is the choice of diagnostic variables that are used in the quantification of a given phenomenon. It must be stressed that the final results are always strongly influenced by the choice of the diagnostic variables (Gostkowski, 1972, pp. 15-17). This is especially important in the case of difficult to measure and quite often qualitative factor such as the QHC. As a results, in the first stage based on the review of literature related to previous research on the QHC a set of preliminary variables was selected, which in the second stage were verified with the application of formal taxonomic criteria of information value (Zelias (ed.), 2000, pp. 127-133). …

What Is in Your Smart Beta Portfolio?A Fundamental and Macroeconomic Analysis

With smart beta becoming increasingly popular, a swath of strategies have been designed to provide access to a wide array of return-enhancing risk in the marketplace. Many strategies claim to provide access to the same factors, and one might reasonably expect that they would be similar. Yet the ways they are constructed can vary widely. Seemingly small distinctions in index construction can lead to portfolios that have differential drivers of risk and return and unequal exposures to factor and sector biases. They can likewise have an effect on the macroeconomic environments in which the portfolios perform, which is particularly important in multifactor portfolios where a number of factors are blended. This article reviews some typical strategies that seek to track common factors (i.e., volatility, momentum, quality, growth, value, dividend yield, and size) in the U.S. market in order to better understand the characteristics of these strategies, from both a fundamental and a macroeconomic perspective. The same analysis is then extended to a multifactor portfolio. <b>TOPICS:</b>Analysis of individual factors/risk premia, mutual funds/passive investing/indexing, portfolio construction

Corporate governance changes, firm strategy and compensation mechanisms in a privatization context

Purpose– The purpose of this paper is to analyze certain organizational changes that occur after privatization. More specifically, the authors analyze from an agency theory perspective how changes at the corporate governance level (ownership type/structure and board of directors) influence firm strategy, and what implications these issues have for the design of compensation mechanisms.Design/methodology/approach– The methodology employed in the study can be described as a longitudinal multiple case study approach. A multiple case study enables the comparison of pre- and post-privatization periods in five Spanish companies. This methodology is especially suitable to track the organizational changes occurring in relation to the firms’ internal management.Findings– First, the variables that traditionally relate to greater board independence in monitoring do not suffer from variation after privatization. Second, the interests of the firms’ new ownership have an impact on firm strategy after privatization. Finally, compensation system design clearly aligns with firm strategy after privatization.Research limitations/implications– The research is based on a multiple case study approach, which limits the scope and generalizability of the findings.Originality/value– Whereas research in privatization generally adopts a macroeconomic or political perspective, organizational and managerial implications are current aspects in need of further examination. This research offers a study that integrates three sets of variables (corporate governance, strategy and compensation) that have been rarely analyzed in this context.

Determinants of small and medium scale enterprises financing by the banking sector in Nigeria: a macroeconomic perspective

This study assesses from a macroeconomic perspective the determinants of small and medium scale enterprises (SMEs) financing by the banking sector in Nigeria between 1992 and 2014. The empirical model specifies commercial banks’ lending to SMEs as a function of selected macroeconomic indicators which include commercial banks’ total deposits, financial deepening, interest rate spread, lending rate, monetary policy rate, commercial banks’ total assets and inflation rate. The 2SLS estimation results show that only commercial banks’ deposit mobilization, depth of the financial sector and size of the banking sector act as determinants of SMEs financing by commercial banks

Do Stress Tests Pass the Test?

Stress tests have two purposes. From a micro-prudential perspective, they aim to assure that banks have enough capital now to withstand the losses they might incur in the future, if the macro-economic environment were to become markedly more adverse. From a macro-economic perspective, stress tests aim to assure that banks will have enough capital to sustain lending in the downturn, so that any recession will be short and shallow. In other words, stress tests aim to assure that both banks and the economy at large will be resilient. Can stress tests assure such an outcome? Do stress tests themselves pass the test? Here, the jury is still out, although both theory and evidence suggest that stress tests are more likely to pass the micro-prudential test than the macro-prudential one. That in turn implies that stress tests are here to stay as a supervisory tool – a fact that banks would do well to take into account in managing their data, developing their models and managing their capital and liquidity.

The Impact of Research on Policy: A Case of Qualifications Reform

ABSTRACTThe relationship between research and policymaking has been discussed repeatedly. However, the debate tends to be in general, abstract terms or from a macroeconomic perspective with any examples described in a fairly cursory way. Despite the inherent complexity of the research-policy interface, analyses tend to homogenise ‘research’ and ‘policy’ as coherent entities with discussions often focusing on products (research and policies) rather than on the relationships between producers (researchers and policymakers). Here, we take one piece of research on qualifications that has influenced policy rhetoric over the last 5 years. We trace the career of the research from its production in the late 1990s in order to understand the conditions of its dormancy, re-emergence and use over the ensuing years. The paper serves to document the case, which is important in its own right, but also proposes a typology of ways in which research gets adopted and adapted into policy.

The effect of training on Italian firms’ productivity: microeconomic and macroeconomic perspectives

In this article, I explore the effect of training on the productivity of a sample of Italian firms and the impact of training on EU economic growth. Specifically, retrieving data from a survey performed by the Italian Institute for the Development of Vocational Training in 2009, I find that employer‐sponsored training displays a positive and significant effect on the main corporate performance indexes. However, in comparison with companion longitudinal evidence, the magnitude of this impact appears quite narrow. Untangling the determinants of training provision at the firm level and exploring the consequences of training on growth rates by means of the EU's Continuous Vocational Training Survey 4 records, I show that this finding is the outcome of microeconomic and macroeconomic size effects that influence, respectively, the identification of the training impact on corporate productivity and the aggregate performance of the whole economy.

The impact of building orientation and discount rates on a Portuguese reference building refurbishment decision

Refurbishment, as part of the construction industry, has a strong global impact, not only from the viewpoint of economies but also from social and energy-efficiency perspectives. A thermal refurbishment process, in particular, involves numerous decisions and choices; the decision-makers being ultimately confronted with two major questions: which criterion should be adopted in the choice of the refurbishment construction solutions and which refurbishment construction solutions should be chosen?In this paper, a criterion based on technical and economic points of view is proposed, aiming to identify the cost-optimal package of energy efficient solutions from among a set of possible refurbishment measures, within the life cycle of buildings. Sensitivity analyses are also performed so that the results may help the decision-maker choose the appropriate refurbishment solutions to be adopted when different discount rates and building orientations are taken into consideration. A total of seven scenarios, for a macroeconomic perspective, and nine, for a financial perspective, are performed.The costoptimal methodology adopted, following the Directive 2010/31/EU (2010) recommendations, is applied to a Portuguese reference building. The analysis carried out allows obtaining low global life cycle costs solutions and points towards nearly Zero Energy Building (nZEB) concept. The results are important for drawing national political instruments on buildings energy efficiency.