...Countries: The Role of Financial Development Halit Gonenc and Daniel J. de Haan As the trend in globalization continues, developing market economies are moving to the forefront of the world market, diminishing the dominance of developed countries. Their rapid expansion is often underpinned by strong domestic firm performance. The resources and funds required to fuel the sustained future growth of these firms as they compete with global powerhouses from developed markets therefore become important factors. In recent decades the process of globalization has made it increasingly common for developing country firms to internationalize and gain access to developed country capital markets. Developping countries are playing a significant role in the developpment of their home-country economies because of a higher use of external financement, which could give these firms the opportunity of operating in countries with more developped financial markets and a better access to external funds. In addition, developed financial markets can reduce the problem of asymmetric information. To evaluate the role that both the level of financial market development and firm-level characteristics have in the relationship between internationalization and debt financing, they employ three-variable interactions. The purpose was to find out how the relationship between the level of foreign sales and financial development differs for types of firms as classified by levels of financial constraint and asymmetric...
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...JAGANNATH UNIVERSITY DEPARTMENT OF FINANCE JAGANNATH UNIVERSITY DEPARTMENT OF FINANCE COURSE TITLE Public finance COURSE CODE: 3105 COURSE TITLE Public finance COURSE CODE: 3105 AN ASSIGNMENT ON EFFECTS OF PUBLIC EXPENDITURES ON THE DISTRIBUTION OF INCOME AN ASSIGNMENT ON EFFECTS OF PUBLIC EXPENDITURES ON THE DISTRIBUTION OF INCOME SUBMITTED TO: Ayesha Akhter Lecturer DEPARTMENT OF FINANCE FACULTY OF BUSINESS STUDIES JAGANNATH UNIVERSITY Ayesha Akhter Lecturer DEPARTMENT OF FINANCE FACULTY OF BUSINESS STUDIES JAGANNATH UNIVERSITY SUBMITTED BY: Group-01 DEPARTMENT OF FINANCE JAGANNATH UNIVERSITY Group-01 DEPARTMENT OF FINANCE JAGANNATH UNIVERSITY Name of the group members: SL NO. | NAME | ID NO. | 01 | ROBIUL ISLAM RUBEL | B-120203019 | 02 | MD.ABUL KALAM AZAD | B-120203023 | 03 | LAMIA AKTER | B-120203036 | 04 | ASIF AL SAIF | B-120203139 | 05 | MAHMUDUL HASSAN | B-120203102 | 06 | MOHAMMAD MEHADI HASAN | B-120203097 | 07 | ROMANA AKTER PRIA | B-120203059 | 08 | MITHUN KUMER | B-120203041 | 09 | MD.ABU SAYED | B-120203026 | 10 | MOHAMMAD RUHUL AMIN | B-120203062 | TABLE OF CONTENTS SL. NO...
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... 01/2012 Fiscal Policy Evolution and Distributional Implications: The Indonesian experience Smitha Francis Abstract This paper analyses Indonesia’s resource mobilisation and public expenditure policies against the backdrop of her inequality trends and macroeconomic policy evolution. It is argued that the country’s fiscal policy stance has been adversely impacted by her monetary and financial sector policies under an open capital account, with attendant regressive distributional implications. Juxtaposing the analysis of revenue mobilisation trends and taxation policies with the evidence of increasing asset and land concentration and persisting high inequalities reveals that the increase in income tax revenue did not necessarily come from the upper income profiles or corporate profits. Meanwhile, although government expenditure to GDP ratio has improved after 2003, capital expenditures and social expenditures other than those in education continue to remain low. Further, the current pattern of fiscal decentralisation does not seem to be effective in addressing the existing disparities. JEL Classification H 200; H 500; H 700 Key Words Indonesia, fiscal policy, public finance, inequality, taxation, revenue, government expenditure, financial liberalisation, IMF debt conditionalities, decentralisation Smitha Francis is Principal Economist, Economic Research Foundation, New Delhi. Email for correspondence: smithafrancis@gmail.com THE IDEAs WORKING PAPER SERIES 01/2012 ...
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... Introduction The diversity of colleges in the higher education landscape stems from the diversity of missions. For one, the obstacles to innovation in higher education in the USA has been a debate for years. There are colleges that focus on liberal arts education as Dr. Liz Coleman (TED Talks) lectured during her speech about “Reinventing the Liberal Arts Education”. There are colleges that focus on career development. According to Fortino (2015), the university mission is “to create more prepared minds” to contribute to society by creating jobs and innovative opportunities that will improve economies. Fortino (2015) mentioned that the former President of Harvard University, Dr. Derek Bok, discussed the dangers of commercializing higher education when colleges and universities turn their attention to commercial development of their inventions. This apparently is what is being seen on campuses and in universities today. When the focus is placed on commercialization, universities are placed under pressure to produce output and seek profitable, income based outputs, and the main mission and vision of universities can fade and disappear. Governments provide funding to universities and provide laboratories, equipment, books, etc. The desired output is to produce students that have a commercial connection to the real world. For this, students attend college to understand their job prospects at the end of their educational endeavor. Adults are degree-seekers at...
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...01 November 2011 Poverty Rises, Inequality Gap Widens Wealth of 40 richest Indonesians equivalent to 60 million people’s Key Points: • Poverty rate rises over the last three years, Indonesia is the worst country in Southeast Asia in combating poverty • Inequality gap widens, wealth and economic resources are concentrated in a small number of people only • Social and economic justice must be included as development target to prevent social explosion and maintain the sustainability of the development process Managing Director: Setyo Budiantoro, MA Perkumpulan Prakarsa Executive Director ndonesia is the poorest performer on poverty reduction in Southeast Asia region. It is calculated that 2.7 million people become poorer in the country over the last three years. This increase of extreme poverty is, shamefully, the worst one in the region. Indonesia even lags behind its neighboring countries such as Cambodia and Laos in reducing poverty, -not to mention when it is compared to the better off neighbors such as Thailand or Malaysia. Moreover, it is not just that the poverty increases, the share of wealth has also been more disproportionate. The accumulation of 0.02 % richest Indonesians’ wealth is equivalent to 25% of the country’s total GDP (Gross Domestic Product), and the wealth owned by only these 43 thousand people is equal to the wealth accumulation of another 140 million people. If this situation persists, people will feel that their sense of social-economic justice...
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...Micro-Macro Linkages Between Gender, Development, and Growth: Implications for the Caribbean Region Stephanie Seguino Professor, Department of Economics Old Mill 340 University of Vermont Burlington, VT 05401 Tel. 1 802 656-0187 Fax 1 802 656-8405 Email sseguino@zoo.uvm.edu July 2008 Acknowledgements: I am grateful for helpful comments and insights from Rhoda Reddock, Christine Barrow, Caren Grown, three anonymous referees, and participants at the Building Capacity for Gender Analysis in Policy Making, Programme Development, and Implementation: Research Seminar and Workshop, University of West Indies, Barbados, November 2007. Micro-Macro Linkages Between Gender, Development, and Growth: Implications for the Caribbean Region Abstract Over the last two decades, scholars have investigated the two-way relationship between gender inequality on the one hand, and economic development and growth on the other. Research in this area offers new ways to address the economic stagnation and crisis developing countries have experienced over the last two decades. This paper contributes to that literature, exploring the channels by which gender inequality affects, and in important ways, constrains economic development and growth in the Caribbean region. It further explores the endogeneity of gender inequality to the macroeconomic policy environment. The paper concludes with a discussion of economic policies that can promote a win-win outcome—greater gender...
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...THE GLOBALIZATION RORSCHACH TEST: INTERNATIONAL ECONOMIC INTEGRATION, INEQUALITY AND THE ROLE OF GOVERNMENT NANCY BRUNE and GEOFFREY GARRETT* November 2004 Forthcoming in Annual Review of Political Science vol. 8, 2005 In this review essay, we address the three principal questions that have dominated the debate over the distributive effects of globalization. First, how has globalization affected inequality among countries? Second, how has globalization affected inequality within countries? Third, how has globalization affected the ability of national governments to redistribute wealth and risk within countries? We conclude that despite the proliferation of social science research on the consequences of globalization, there is no solid consensus in the relevant literatures on any of these questions. This is because scholars disagree about how to measure globalization and about how to draw causal inferences about its effects. Keywords: globalization, inequality, economic growth, government spending, privatization ___________________________________________________________ * Nancy Brune is a doctoral candidate at Yale University. She can be reached at nbrune@isop.ucla.edu. Geoffrey Garrett is Vice Provost and Dean of the International Institute, Director of the Ronald W. Burkle Center for International Relations, and Professor of Political Science at UCLA. He can be reached at ggarrett@international.ucla.edu. The authors Alexandra Guisinger, David Nickerson and Jason Sorens...
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...neo-classical model of financial market globalization? Why or why not? Financial Globalization stems from the idea of Neoclassical Economics where efficient allocations of resources will bring prosperity to nations through globalization. Financial globalization is an aggregate concept that refers to increasing global linkages created through cross- border financial flows. The theory predicts the capital will flow from the more to less developed countries and all nations will gain as a result. However, in reality where market failures and information asymmetries exist, the results of financial globalizations are conflicting with its ideology. Especially in the emerging markets where the economies are even more highly distorted than the developed ones. Studies show mixed results regarding the effects of financial globalization on developing economies. Though the strong supporter of financial globalization are international organization such as IMF, World Bank and United Nations, many academics argued that the theory did not benefit the developing economies, yet worsening them. This essay will be critically analyzed the impacts of financial globalization on emerging countries in economic and social aspects. Growth In principle, financial globalization is greatly beneficial to economic growth in developing countries. Reduction in cost of capital, technology transfer and development of financial sectors are direct advantages from globalizing financial sectors, hence boost economic...
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...Truth about the Income Disparity Recently, President Barack Obama announced his plan to rein in the compensation of executives and raise tax rates on capital gains. This has again brought the topic of America’s widening income gap to the front page. While it is true that the wealth of America has long been dominated by a small number of people, most Americans do not see it as economic inequality or an obstacle to the development of the economy, which can be explained from two aspects—culture and economy. Instead, the real problem is the workers’ slow-paced wage increase, especially compared with the rising health care costs. Admittedly, most of the household income and wealth in America are occupied by a small minority of people at the very top, and actually the income gap has been rising at an increasing pace for the last few years. According to the data released by the Internal Revenue Service in 2005, 21.2% of all the household income went to the top 1% of Americans, the percentage of which was just 19% in 2004, and 20.8% in 2000—the previous high hit due to the skyrocket stock market. First of all, however, are the income disparity and economic inequality the same thing? Definitely not. As pointed out by Ladd and Bowman, rooted in the concept of equality for Americans is the notion of “equality of opportunity” (33). Great disparity in income distribution among social members can be tolerated as long as they can perceive that they have the opportunity to move...
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...longest lasting economic collapse. This phenomenon was called the Great Depression, which began after the stock market crash of October 1929 and lasted until the late 1930s. More than a century after, the world economy faced its most dangerous crisis for a second time. By the year of 2007, when sky high home prices in the United States went down, spread quickly to the entire country financial sector and then to the financial markets overseas, the called Global crisis of 2008 had born. Anyhow, the economic world has had many other financial crisis of different types at different levels of impact over the world. For this reason, it is really important the study of the main cause of all these financial crisis that bring chaos, create poverty, and widen the gap between rich and poor; the monetary system and the money it produces. In order to make evident the deficiencies of the monetary system and answer the following question: Do we really need money? I proposed three sub question that would clarify and support the main answer. These questions are: In what the monetary system depends on? How a financial crisis is created and how it affects the economy? Has the monetary system created poverty? Will the monetary system balance the difference between poverty and wealth one day? In what the monetary system depends on? Money rules the economy of countries. As we all know, money is not only a medium of exchange, but also a standard of value for future payments. According with the table...
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...Drives the Development of the Insurance Sector? An Empirical Analysis Based on a Panel of Developed and Developing Countries Erik Feyen Rodney Lester Roberto Rocha Public Disclosure Authorized Public Disclosure Authorized The World Bank Financial and Private Sector Development Finance and Policy Units February 2011 Policy Research Working Paper 5572 Abstract The insurance sector can play a critical role in financial and economic development. By reducing uncertainty and the impact of large losses, the sector can encourage new investments, innovation, and competition. As financial intermediaries with long investment horizons, insurance companies can contribute to the provision of long-term instruments to finance corporate investment and housing. There is evidence of a causal relationship between insurance sector development and economic growth. However, there have been few studies examining the factors that drive the development of the insurance industry. This paper contributes to the literature by examining the determinants of insurance premiums (both life and non-life premiums) and total assets for a panel of about 90 countries during the period 2000-08. The results show that life sector premiums are driven by per capita income, population size and density, demographic structures, income distribution, the size of the public pension system, state ownership of insurance companies, the availability of private credit, and religion. The nonlife sector is affected...
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...Inequality and Growth in a Panel of Countries* Robert J. Barro, Harvard University June 1999 Abstract Evidence from a broad panel of countries shows little overall relation between income inequality and rates of growth and investment. However, for growth, higher inequality tends to retard growth in poor countries and encourage growth in richer places. The Kuznets curve—whereby inequality first increases and later decreases during the process of economic development—emerges as a clear empirical regularity. However, this relation does not explain the bulk of variations in inequality across countries or over time. *This research has been supported by a grant from the National Science Foundation. An earlier version of this paper was presented at a conference at the American Enterprise Institute. I am grateful for excellent research assistance from Silvana Tenreyro and for comments from Paul Collier, Bill Easterly, Jong-Wha Lee, Mattias Lundberg, Francisco Rodriguez, Heng-fu Zou, and participants of a seminar at the World Bank. 2 A substantial literature analyzes the effects of income inequality on macroeconomic performance, as reflected in rates of economic growth and investment. Much of this analysis is empirical, using data on the performance of a broad group of countries. This paper contributes to this literature by using a framework for the determinants of economic growth that I have developed and used in previous studies. To motivate the extension of this...
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...Subject code: BBEK1103 Subject: Principles of Microeconomics Contents Preface .......................................................................................................................................................... 2 Introduction ................................................................................................................................................... 3 Effects of Tax systemt .................................................................................................................................. 4 Evaluation of Tax Reforms……………………………………………………………………………………………………………………..10 Conclusion…………………………………………………………………………………………………………………………………………....11 References…………………………………………………………………………………………………………………………………………….14 Easa Faheem S11422649 Bachelors Degree in Human Resource Management 1 Subject code: BBEK1103 Subject: Principles of Microeconomics Preface This is a work done as part of the module „Principles of Microeconomics‟, which is part of the course Bachelor of Human Resource Management. Consisting of an analysis of a Tax reforms for Maldives, this assignment evaluates the purpose of the tax system, types of tax systems, effects of the tax reform systems to the economy and other factors which affect it. The objective of this work is to develop students‟ ability to analyse the critically tax reform systems of certain country, as well as the various external factors that have an impact on the economy...
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...Income Inequality and Economic Well Being Income inequality is prevalent in the entire economic global economy with its effects clearly visible in form of differences in pay scales, distribution per household etc. The economic well-being is not measured in the terms of income alone, but also by other factors such as satisfaction levels, education standards, quality of life etc contribute towards well-being. The causes of the income inequality broadly fall into two categories: the market forces and the institutional forces. The market forces includes the technological advances and the increased trade, making the highly educated and more skill work force more productive thus increasing their wages whereas the institutional forces like deregulation leading to decline of unions and stagnation in the minimum wage in the recent years. Despite the fact that the level of income distribution has become skewed over the decade, the quality of life, due to various advancements has improved. Better quality products can be purchased at lower prices, which in-turn has improved the standard of living over the past decade. It is a common fact that the richer are happier than the poor. But well being is a matter of perception as well. People asses their well being by comparing their past and current circumstances, and by comparing their current standard with that of others. The Easterlin Paradox, which was developed by Richard Easterlin,, states that “although at some point in time richer...
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...Development Trends in Southeast Asia and the Philippines I. DISCUSSION ON THE ESE PROBLEMS OF SEA AS A REGION A. ON ENVIRONMENTAL PROBLEMS SOUTHEAST ASIA IS OBJECTIVELY one of the most beautiful regions on Earth — it’s covered in dense jungle, it’s peppered with gorgeous beaches, and it’s full of incredible wildlife. It also has some spectacular urban centers, recently stimulated by massive economic growth. Unfortunately, the act of pulling people out of poverty and into the developed world often comes at the expense of the local environment. This is true of all countries in this scenario, but it’s particularly acute for Southeast Asian nations, as their economies — especially the tourism sector — depend so fundamentally on pristine natural resources. Most of the environmental issues in Southeast Asia are inextricably linked, and working to ameliorate one will often have added benefits for the others. Here are some of the problems, and some things you personally can do to help. 1. Endangered species conservation The problem: Southeast Asia sits almost entirely in the tropics, and as such, is covered in rich, dense, biologically diverse jungle. As a result of a wide number of factors — from poaching to deforestation — many native species are endangered. One of the most prominent of these species is the Asian elephant. The total number of Asian elephants in the world has sadly fallen to below 30,000, down from 100,000 at the beginning of the...
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