scholarly journals Capital Account Liberalization and Management

2017 ◽  
Author(s):  
José Antonio Ocampo
Keyword(s):  
Developing Countries ◽  
Developed Countries ◽  
Policy Instrument ◽  
Capital Account ◽  
Global Finance ◽  
Capital Account Liberalization ◽  
Bretton Woods ◽  
Account Management ◽  
Emerging And Developing Countries ◽  
Desirable Effect

This chapter looks at the transition from the acceptance at Bretton Woods of capital account management as a normal policy instrument to the liberalization of the capital account, first in developed countries and later in developing countries. It then analyses the risks of capital account liberalization, particularly the relation between capital account liberalization and the boom–bust cycles in global finance which have severely affected emerging and developing countries since the 1970s. It finally reviews the controversies around the effects of capital account liberalization and the evidence of success or failure with capital account management. Overall, there is significant evidence that capital account regulations improve the composition of capital flows towards less reversible flows and increase monetary independence without sacrifising exchange rate objectives. They also may have a desirable effect on the magnitude of flows and on exchange rates, but these effects are contested by some authors.

scholarly journals Modern Services Exports from Emerging Countries—Perspectives and Opportunities

2012 ◽  
Vol 51 (4II) ◽  
pp. 209-226
Author(s):  
Shahbaz Nasir
Keyword(s):  
Developing Countries ◽  
Comparative Advantage ◽  
Empirical Work ◽  
Developed Countries ◽  
Emerging Countries ◽  
Export Growth ◽  
Technological Developments ◽  
Emerging And Developing Countries ◽  
Technological Improvements ◽  
Modern Services

Traditionally, developed countries are the major exporters of services; however, technological developments in IT and communications over the last two decades have made it possible for developing countries to exploit their comparative advantage in some modern services. The driving force for this comparative advantage is the large pool of semi-skilled and skilled graduates in emerging countries who can deliver their services across borders, using advanced communication technologies. Why do emerging countries have increasing modern services exports? How are these exports explained by theory? What are the factors behind this export growth and the reasons to expect future growth? These are some of the important questions that researchers and policy-makers would like to find answers to and an attempt has been made to answer these questions in this paper. Identification of the sources of services export growth from emerging and developing countries can be attempted through established theories of goods trade and production. This paper reviews selected theory and empirical work in order to explain the underlying causes for growing exports of services. Causes for the export of modern services may include a comparative advantage of the exporting country, cost reduction for the importing firm through outsourcing, reduction in trading costs due to technological improvements and an increase in gains from services trade.

Determinants of Industrial Development

2021 ◽  
pp. 378-406
Author(s):  
Fiona Tregenna ◽  
Kevin Nell ◽  
Chris Callaghan
Keyword(s):  
Developing Countries ◽  
Human Capital ◽  
Exchange Rate ◽  
Panel Data ◽  
Industrial Development ◽  
Trade Openness ◽  
Developed Countries ◽  
Government Consumption ◽  
Capital Account Liberalization ◽  
Exchange Rate Depreciation

Global evidence suggests that, for many countries, manufacturing typically has an inverted U-shaped relationship with development. But unlike the historical experience of most developed countries, for most developing countries the turning point of this relationship is occurring sooner in the development process, and at substantially lower levels of income. This is termed ‘premature deindustrialization’. The consequences of this may be particularly important if such countries can no longer rely on manufacturing-led development. Why are some countries more industrialized, or more deindustrialized, than other comparable countries? To explore these issues, this chapter uses panel-data econometric techniques to analyse the determinants of the share of manufacturing in GDP, across countries and across time. Domestic determinants include investment, government consumption, population size, human capital, democracy, and natural resource endowments. External determinants include trade openness, capital account liberalization, and exchange rate depreciation.

scholarly journals The Role of Private Sectors for Trade Liberalizatio in Connection with Export Promotion

2020 ◽  
Vol 8 (6) ◽  
Author(s):  
Eprem Ahadu ◽  
Ageze Chufamo
Keyword(s):  
Developing Countries ◽  
Trade Liberalization ◽  
Developed Countries ◽  
Export Promotion ◽  
Economic Liberalization ◽  
Reform Process ◽  
Capital Account ◽  
Contemporary World ◽  
Sustainable Capacity

In contemporary world the neoliberal economists have pursued to establish the thought that economic liberalization consistently promotes growth and decreases poverty in less developed countries. Liberalization of markets in the developing countries, according to them, promotes exports and it will create economic perfection by intensifying competition between domestic and external economic actors and exposing management and workers to improved practices  Did the market liberalization policies of Ethiopia is helpful?  This paper surveys the literature and provides its own assessment of the nexus between private sector and trade liberalization in connection with export promotion. The country's step wise liberalization process has shown some favourable prospects for investment and growth. However, the next steps, liberalizing the capital account and leaving the exchange rate to be determined in the market, among other things, require a skillful design. The capital account which is still left unliberalized has to wait for some time till the economy ensures a sustainable capacity of generating foreign currencies. Otherwise economic instability would follow and consequently, the reform process would be as stake.

How companies from developing and emerging countries can leverage their brand equity in terms of place branding

2014 ◽  
Vol 24 (4) ◽  
pp. 293-305 ◽  
Author(s):  
Ram Herstein ◽  
Ron Berger ◽  
Eugene D. Jaffe
Keyword(s):  
Developing Countries ◽  
Conceptual Model ◽  
Developed Countries ◽  
Emerging Countries ◽  
Two Dimensions ◽  
Branding Strategy ◽  
Content Type ◽  
Country Branding ◽  
Emerging And Developing Countries ◽  
Made In

Purpose – The purpose of this conceptual paper is to present a new approach that will enable marketers in developing and emerging countries to promote their products, irrespective of their country of origin’s image. Many companies in emerging and developing countries, intent on exporting their products/services, struggle to overcome the negative “made-in” image barrier. Despite tremendous efforts by the governments of these countries to change the unfavorable image of products made there, their good quality products are still perceived as inferior compared to companies whose products are “made-in” in countries with a positive image, mainly developed countries. Design/methodology/approach – The proposed conceptual model hinges on two dimensions – global political status and human capital capabilities. Using this framework, four different types of country destination positioning emerge, each with its own country branding strategy. Findings – Companies from emerging and developing countries can compete on an equal footing with Western companies by changing their country branding strategy. Companies from countries such as China and Costa Rica can promote themselves better by implementing region and continent branding strategies. Practical implications – The proposed conceptual model enables marketers to cope even with the most negative “made-in” country stereotypes and improve their marketplace positions. Originality/value – The literature review demonstrates that researchers have not dealt with these two dimensions. Consequently, the paper offers marketers a new perspective on the complex issue of country positioning and how to leverage their strengths to maximize their company’s profits.

Opening the capital account of developing countries: Some policy issues

2003 ◽  
Vol 53 (3) ◽  
pp. 245-270 ◽  
Author(s):  
D. Daianu ◽  
R. Vranceanu
Keyword(s):  
Developing Countries ◽  
Capital Mobility ◽  
Global Economy ◽  
Currency Crises ◽  
Developing Economies ◽  
Market Competition ◽  
Capital Account ◽  
Capital Account Liberalization ◽  
System A ◽  
Building Market

In the late eighties, many developing countries followed the example of the most advanced countries and opened their capital account (K.A.) in an attempt to reap new gains from increased integration with the world economy. Currently, after the wave of financial and currency crises that hurt the global economy over the last decade, enthusiasm about K.A. liberalization has greatly faded. First, the relationship between development and capital account liberalization did not come out to be as solid as initially expected; second, the greater capital mobility has brought about new forms of financial instability. This paper points to some risks that might be associated with undifferentiated deregulation of international movements of capital in connection with developing economies. It argues in favor of proper sequencing: liberalization should proceed in parallel with progress when it comes to macroeconomic stability, building market competition and the creation of a sound, internal financial system. A separate section analyzes this issue in the special context of transition economies.

The political economy of financial internationalization in the developing world

1996 ◽  
Vol 50 (1) ◽  
pp. 35-68 ◽  
Author(s):  
Stephan Haggard ◽  
Sylvia Maxfield
Keyword(s):  
Developing Countries ◽  
Balance Of Payments ◽  
Capital Inflows ◽  
Financial Intermediaries ◽  
Capital Account ◽  
Financial Openness ◽  
Capital Account Liberalization ◽  
Proximate Cause ◽  
The Face ◽  
Financial Internationalization

In the last decade a growing number of developing countries have opened their financial systems by liberalizing capital flows and the rules governing the international operations of financial intermediaries. One explanation of this rush toward greater financial internationalization is that increasing interdependence generates domestic and foreign political pressures for capital account liberalization. While we find evidence for that hypothesis, we find that the proximate cause in developing countries more frequently is found in balance of payments crises. Politicians perceive that financial openness in the face of crisis can increase capital inflows by indicating to foreign investors that they will be able to liquidate their investments and by signaling government intentions to maintain fiscal and monetary discipline. The argument is explored through case studies of Chile, Indonesia, Mexico, and South Korea.

scholarly journals Special Drawing Rights: International Monetary Support for Developing Countries in Times of the COVID-19 Crisis

2020 ◽  
Vol 0 (0) ◽  
Author(s):  
Kevin Gallagher ◽  
José Antonio Ocampo ◽  
Ulrich Volz
Keyword(s):  
Developing Countries ◽  
Emerging Economies ◽  
Developed Countries ◽  
International Liquidity ◽  
Exogenous Shock ◽  
Health Crisis ◽  
Special Drawing ◽  
Emerging And Developing Countries ◽  
Special Drawing Rights ◽  
The International Monetary Fund

AbstractA major issuance of special drawing rights (SDRs) through the International Monetary Fund would be a key tool to provide financial support to developing and emerging economies and limit the economic and financial fallout of the COVID-19 crisis. SDRs are an unconditional resource, and the case for such an allocation is very strong during an exogenous shock, such as the current one. An SDR allocation would enhance the international liquidity in the hands of emerging and developing countries, so that public responses to the health crisis are not imperilled by financial crises. Close to two-fifths of a new SDR allocation would directly go to developing and emerging economies. In addition, a new mechanism should be created through which countries that do not need their SDR allocation lend them to the IMF, to increase the Fund’s lending capacity. Developed countries can also allocate the SDRs they do not use for official development assistance.

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