Primary Policy Issues Research Articles

Analysis of Non-Oil Exports – Economic Growth Relationship in Nigeria: The Role of Institutional Qualities

ABSTRACT: One of the primary policy issues over the years in the context of the Nigerian economy has been how to enhance the performance of the non-oil export sector of the economy in order to diversify the country's export base and contribute more to GDP (gross domestic product). Rather than a lack of policy initiatives, the noticeably abysmal performance of Nigerian non-oil exports has been increasingly attributed to poor policy implementation. However, the question of whether such poor implementation is due to the quality of institutional settings, particularly in a developing economy such as Nigeria, has been largely unexplored. To the best of our knowledge, none of the previous studies deemed it necessary to control for the role of institutional quality in the non-oil export-growth nexus from the perspective of the Nigerian economy. To bridge this important gap in the literature, we hypothesize that institutional qualities matter in the relationship between economic growth and non-oil exports. Motivated by a desire to diversify Nigeria's economy away from its reliance on oil exports, this study re-examines the export-led growth hypothesis from the standpoint of non-oil exports while accounting for the role of institutional qualities. We employ the ARDL estimation technique as the best econometric model for the study given its suitability for variables of mixed order of integration in terms of the series' stationarity. More so, the ARDL technique enables us to simultaneously capture both the short-run and long-run dynamics of the nexus. Empirically, we show results that suggest that improved institutional qualities have the potential to boost the positive effects of non-oil exports on economic growth. We also find that the extent to which institutional quality matters for enhancing the effects of non-oil exports on economic growth depends on the institutional quality indicators chosen. On the whole, we expand on the export-led growth hypothesis by considering the role of institutional characteristics and conclude that improving institutional qualities should be prioritized in the path to Nigerian economic diversification.

Does Public Attention Reduce the Influence of Interest Groups? Policy Positions on SOPA/PIPA before and after the Internet Blackout

We investigate the role that public attention plays in determining the effect that campaign contributions funded by interests groups have on legislators’ policy positions. In so doing, we exploit the Internet service blackout of January 2012 as a quasi-experiment in which a shock increases the salience of the SOPA/PIPA bills aimed at securing stronger protection of property rights on the Internet. Using a newly compiled dataset of U.S. congressmen’s public statements, which capture their positions throughout the debate, we find an initially strong statistical relationship between campaign contributions funded by the affected industries and legislators’ positions. However, this relationship evaporates once the two bills become primary policy issues. The evidence presented is in line with the theoretical notion that legislators choose positions on secondary policy issues in order to cater to organized interests, whereas positions on primary policy issues are driven by electoral support.

DOES PUBLIC ATTENTION REDUCE THE INFLUENCE OF MONEYED INTERESTS? POLICY POSITIONS ON SOPA/PIPA BEFORE AND AFTER THE INTERNET BLACKOUT

We investigate the role of public attention in determining the effect that campaign contributions by interest groups have on legislators' policy positions. We exploit the shock in public attention induced by the Internet service blackout of January 2012 that increased the salience of the Stop Online Piracy Act/Protect IP Act (SOPA/PIPA) bills aimed at stronger protection of property rights on the Internet. Using a new dataset of U.S. congressmen's public statements, we find a strong statistical relationship between campaign contributions funded by the affected industries and legislators' positions. However, this relationship evaporates once the two bills become primary policy issues. Our results are consistent with the notion that legislators choose positions on secondary policy issues in order to cater to organized interests, whereas positions on primary policy issues are driven by electoral support. (JEL D72, L82, L86)

The development and initial implementation of South Africa's national space policy

South Africa is one of the few countries in Africa that has codified a national space policy. South Africa's first public national space policy was adopted in 2009. The policy has given direction and purpose to the country's recent space activities. Prior to this, space activities in South Africa were disparate and uncoordinated. Because space policy is not a primary policy issue, but rather an ancillary policy issue, the development of space policy had to be couched in terms that made it clear to policymakers exactly how space activities would contribute to national development and other policy priorities. This required building capacity in government to engage in policy discussions around these issues. We describe the process that was followed to raise the political profile of space affairs to the point that it became a policy issue for the South African government. The policy development narrative is arranged in a series of ten goals that were addressed during the policy development process. These goals speak to how one can address the political and systemic challenges of space policy formulation in the context of an emerging space nation that is also a developing country. The goals may thus be of interest to other emerging space nations at a similar stage in their development.

Does Anti‐Hispanic Bias Motivate Opposition to Non‐English Languages?*

Contemporary political debates about language policy in the United States focus on three primary policy issues: bilingual education in public schools, English‐only legislation, and the access of non‐English speaking citizens to political rights. Using the “Multi‐Ethnic United States” module from the 2000 General Social Survey (GSS), this article tests multiple attitudinal, behavioral, demographic, and contextual hypotheses for how Anglos and African Americans view bilingual policy issues. We examine the role of linguistic contact, self‐interest, group threat, and discriminatory views of Latinos, finding that the latter—as measured by the “Three Ds” (Derogation, Disrespect, and Distance)—are the strongest predictors of attitudes toward bilingualism. Distance (social distance from Latinos) is consistently significant, disrespect (doubts about Latino contributions to the United States.) is mostly significant, and derogation (Latino stereotypes) is occasionally significant. Also, political ideology and knowledge of a non‐English language play important roles in the formation of favorable bilingualism opinions. However, the self‐interest and group threat variables were largely insignificant. Taken together, these findings indicate the importance of understanding how policy views may be structured by opinions about out‐group individuals and cultures. Language can serve as a proxy for immigrants themselves, as negative attitudes toward Latinos are associated with negative attitudes toward bilingualism.

Additional Reductions In Medicare Spending Growth Will Likely Require Shifting Costs To Beneficiaries

Policy makers have considerable interest in reducing Medicare spending growth. Clarity in the debate on reducing Medicare spending growth requires recognition of three important distinctions: the difference between public and total spending on health, the difference between the level of health spending and rate of health spending growth, and the difference between growth per beneficiary and growth in the number of beneficiaries in Medicare. The primary policy issue facing the US health care system is the rate of spending growth in public programs, and solving that problem will probably require reforms to the entire health care sector. The Affordable Care Act created a projected trajectory for Medicare spending per beneficiary that is lower than historical growth rates. Although opportunities for one-time savings exist, any long-term savings from Medicare, beyond those already forecast, will probably require a shift in spending from taxpayers to beneficiaries via higher beneficiary premium contributions (overall or via means testing), changes in eligibility, or greater cost sharing at the point of service.

The Policy Context of Patient Centered Medical Homes: Perspectives of Primary Care Providers

Interest in the patient centered medical home (PCMH) model has increased significantly in recent years. Despite this attention, information is limited regarding the influence of policy context on implementation of the PCMH model. Using comparative, qualitative data, we identify several key policy impediments to PCMH implementation, and propose practical guidelines for addressing these issues. Qualitative, semi-structured in-person interviews with representatives of physician organizations and primary care practices pursuing PCMH. Practitioners and staff at 16 physician practices in Michigan, as well as key leaders of physician organizations. We identified five primary policy issues cited by physicians and physician organization leaders as most impactful on their efforts to adopt PCMH: misalignment of current reimbursement schemes, administrative burden, conflicting criteria for PCMH designation, workforce policy issues, and uncertainty of health care reform. These policies were largely seen as barriers to their ability to implement PCMH. Providers' motivation to embrace PCMH, and their level of confidence regarding the results of such change, are greatly influenced by their perception of the external environment and the control they believe they have over this environment. Having policies in place that shape the path to PCMH in a manner that makes it as easy as possible for providers to accomplish the desired changes could well make the difference in whether successful transformation is achieved.

Non-profit Taxation on Corporations in the EU: Lessons from Corporate Tax Reforms in Germany and Tax Implications of the Global Economic Crisis

Without any doubt, one of the primary policy issues in public finance in the European Union (EU) is the issue of tax competition, which results in a race to the bottom in statutory tax rates, tax base broadening policies, and potential distortions in firm decisions. The literature focuses mainly on profit taxes; however, as the financial crisis is biting into the real economy, non-profit taxes have become a more important factor in the overall tax burden on companies. In this context, one important question is whether non-profit taxation and tax base broadening policies have accelerated the course of economic downturn. This article analyses the impact of non-profit taxes on the overall tax burdens of companies. It offers not only a broad geographical scope but also great detail in calculations of tax burdens on income-independent taxes. In particular, it reveals that tax regimes characterized by restrictive thin capitalization rules, tightened loss offset rules, or a high proportion of non-profit taxes in the overall tax mix are more severely hit by economic downturns. The various tax measures taken by many EU-27 Member States in response to the crisis are, therefore, looked upon favourably.

The contradictions of state regulation of the banking sector: the challenge of moral hazard during the sub-prime mortgage crisis

The sub-prime crisis began in mid-2007 as a bursting of the US housing market bubble and became a truly global meltdown in 2008. Renewed instability in financial markets precipitated awareness of how policy makers must react to systemic failures. This paper discusses the primary policy issues raised by the Federal Reserve/Treasury intervention in order to contribute to the ongoing debate on crisis management and moral hazard. It argues that the guarantee of government rescue did not lead to a moral hazard embodied by the sub-prime crisis. Instead, the opposite took place – government failure to regulate highly leveraged institutions in the time period prior to the crisis created conditions that would lead to a perfect storm of financial collapse. In investigating the regulatory as well as market sources of the 2007 credit crunch, this paper describes the steps that policy makers must take to preempt systemic failures as an alternative to reliance on the Federal Reserve stepping in after a crisis breaks out.

Cannabis and the U.S. Controlled Substances Act

Abstract The scheduling of cannabis under the Controlled Substances Act (CSA) has established legal precedents that determine how scientific evidence affects its regulation in the United States. This background challenges three common fallacies that make it seem marijuana prohibition is the only viable policy outcome. A contemporary effort to reschedule cannabis is based on recent findings that have established that marijuana lacks the high potential for abuse required for Schedule I or Schedule II status under the CSA. The primary policy issue is not, then, whether marijuana is the best medicine but instead whether people who use it medically should be treated as criminals.

Interconnection of private networks: A link between industrial and telecommunications policy

A wide variety of machines and human users in separate organizations communicate with one another via interconnected computer networks. The development and use of these Inter-Organization Networks (IONs) has serious implications for the public telecommunications infrastracture. It is increasingly unclear where the ION participants' networks end and the public network begins. This article defines and gives examples of IONs, and discusses the primary policy issues raised by their use. In order to understand and predict policy outcomes, the relationships between technical, organizational and policy variables are discussed in detail. The model presented illuminates the strategic significance of IONs. The analysis focuses on the new economics of interorganization communications introduced by this telecommunication-based innovation.

Groundwater Management and Salinity Control: A Case Study in Northwest Mexico

AbstractPolicy issues associated with the management of a coastal groundwater aquifer and soil salinity are examined for an irrigation area in northwest Mexico. The primary policy issues are the intertemporal rate of use of the groundwater stock, the allocation of water between irrigation and leaching, and the selection of crops. A management model, cast in a dynamic programming format, indicates that the aquifer should be mined at a rapid rate near the beginning of the planning horizon, gradually decline through time, and converge to safe yield after twenty‐nine years. Further, a larger percentage of total water use should be allocated to leaching to maintain soil salinity at lower levels.

An Overview of the Results on Consumption, Health, and Social Behavior

The primary policy issue to which the experiment on graduated work incentives addressed itself is, of course, the effect on willingness to work. There is, however, a second category of issues, somewhat broader and less easily defined but of comparable importance, which concern the general effects of graduated work incentives on the life style of the beneficiaries. These issues can be described, in considerably oversimplified form, as follows: Those who fear the worst of a system of graduated work incentives may hold the hypothesis that a large part of the payments will be wasted by the recipients-either being spent on drugs, drinks, and gambling or being dissipated in increased leisure time unproductively used. Those espousing such an extreme view would say that a program of unconditional cash payments should be avoided, perhaps to protect the potential recipients from their own folly, and certainly to prevent the use of public funds for such purposes. At the other extreme is the view that such a program might well improve the life style of the recipients. The assurance of financial support and the increase in expected income might lead to a modification in attitudes that could, perhaps, be described as the adoption of middle-class values and a reconciliation with the goals of the bulk of society. Such attitude changes might be expected to lead, among other things, to political activity, increased interest in education and quality of neighborhoods, lower crime rates, and reduced neurosis and psychosis. At least two intermediate hypotheses also suggest themselves as possibilities. The first is that a program of graduated work incentives simply does not interfere materially with recipients' life styles, aside from augmenting spending power, and that such a measure neither can nor (perhaps) should be an effective instrument to change people's lives. The second is that a social experiment limited in number of participants and duration, where the range of alternative states is chosen to be rather narrow, is unlikely to show striking effects.