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on Confederation of Independent States |
| By: | Akpan, Uduak; Isihak, Salisu; Asongu, Simplice |
| Abstract: | This study employs panel analysis to examine the determinants of foreign direct investment (FDI) in Brazil, Russia, India, China, and South Africa (BRICS) and Mexico, Indonesia, Nigeria, and Turkey (MINT) using data for eleven years i.e. 2001 – 2011. First, it uses pooled time-series cross sectional analysis to estimate the model on determinants of FDI for three samples: BRICS only, MINT only, and BRICS and MINT combined; then, random effects model is also employed to estimate the model for BRICS and MINT combined. The results show that market size, infrastructure availability, and trade openness play the most significant roles in attracting FDI to BRICS and MINT while the roles of availability of natural resources and institutional quality are insignificant. Given that FDI inflow to a country has the potential of being mutually beneficial to the investing entity and host government, the challenge is on how BRICS and MINT can sustain the level of FDI inflow and ensure it results in economic growth and socio-economic transformation. To sustain the level of FDI inflow, governments of BRICS and MINT need to ensure that their countries remain attractive for investment. BRICS and MINT also need to ensure that their economies absorb substantial skills and technology spillovers from FDI inflow to promote sustainable long-term economic growth by investing more in their human capital. The study is significant because it contributes to literature on determinants of FDI by extending the scope of previous studies which often focus only on BRICS. |
| Keywords: | FDI, determinants, fast-growing economies, BRICS, MINT |
| JEL: | E0 F0 O1 |
| Date: | 2014–01–04 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:56810&r=cis |
| By: | Orphanides, Athanasios |
| Abstract: | This paper reviews developments in the Cypriot economy following the introduction of the euro on 1 January 2008 and leading to the economic collapse of the island five years later. The main cause of the collapse is identi?ed with the election of a communist government in February 2008, within two months of the introduction of the euro, and its subsequent choices for action and inaction on economic policy matters. The government allowed a rapid deterioration of public finances, and despite repeated warnings, damaged the country’s creditworthiness and lost market access in May 2011. The destruction of the island’s largest power station in July 2011 subsequently threw the economy into recession. Together with the intensification of the euro area crisis in the summer and fall of 2011, these events weakened the banking system which was vulnerable due to its exposure in Greece. Rather than deal with its ?scal crisis, the government secured a loan from the Russian government that allowed it to postpone action until after the February 2013 election. Rather than protect the banking system, losses were imposed on banks and a campaign against them was coordinated and used as a platform by the communist party for the February 2013 election. The strategy succeeded in delaying resolution of the crisis and avoiding short-term political cost for the communist party before the election, but also in precipitating a catastrophe right after the election. -- |
| Keywords: | Cyprus,euro area,crisis,sovereign debt,populism. |
| JEL: | D72 E32 E65 F34 H12 H63 |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:imfswp:79&r=cis |
| By: | Vakulchuk, Roman (Norwegian Institute of International Affairs (NUPI)); Irnazarov, Farrukh (Central Asian Development Institute (CADI)) |
| Abstract: | The barriers to trade in developing countries constitute one of the major obstacles to economic development and growth. This study aims at addressing the issues surrounding the prevalence of informal trade barriers in Kazakhstan and Uzbekistan. While it appears to be logical that the strongest economies of Central Asia should increase trade volume with neighboring countries, in reality the potential for intensifying cross-border trade is barely being realized. This paper attempts to shed light on trade barriers in key industries in both countries, including manufacturing, transport, and agriculture. As can be seen from this study, these industries experience different types of restrictions and varying degrees of state intervention in Kazakhstan and Uzbekistan. The paper places special emphasis on informal barriers and the tools companies use to overcome those barriers. The paper is based on a survey of a total of 108 companies in both countries and the output of a roundtable discussion in Kazakhstan with representatives of companies and other experts in the above-mentioned industries. |
| Keywords: | Kazakhstan; Uzbekistan; trade; formal and informal barriers; cross-border activity |
| JEL: | D80 F10 F20 L10 L20 |
| Date: | 2014–05–01 |
| URL: | http://d.repec.org/n?u=RePEc:ris:adbrei:0130&r=cis |
| By: | Azevedo, Joao Pedro; Atamanov, Aziz; Rajabov, Alisher |
| Abstract: | Tajikistan was one of the fastest growing countries in the Europe and Central Asia region during the last decade. The economic growth was widely shared by the population and as a result poverty (measured by the national poverty line) declined from 73 percent in 2003 to 47 percent in 2009 accompanied by falling inequality. Consumption growth of the bottom 40 percent of the population -- a measure of shared prosperity proposed by the World Bank- was positive, pointing out that the growth was shared among the less well off. This work presents a diagnostic of shared prosperity and poverty reduction in Tajikistan during 2003-2009. The paper also focuses on quantifying the main drivers of poverty reduction, shared prosperity, and intra-generational mobility (class transitions). Some of the mechanisms of poverty reduction are explored in detail. Finally, main impediments to inter-generational mobility are discussed. |
| Keywords: | Rural Poverty Reduction,Regional Economic Development,Achieving Shared Growth,Population Policies |
| Date: | 2014–06–01 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:6923&r=cis |