Endogenous Markup, Per Capita Income and Population Size in the Gravity Equation

2018 ◽  
Vol 19 (2) ◽  
Author(s):  
Wisarut Suwanprasert
Keyword(s):  
Low Income ◽  
Bilateral Trade ◽  
Random Search ◽  
Trade Flow ◽  
Trade Flows ◽  
High Income ◽  
Low Income Countries ◽  
Price Setting ◽  
Bilateral Trade Flow ◽  
Per Capita

Abstract While recent studies use asymmetric trade costs and non-homothetic preference to explain why trade grows strongly with income per capita, this paper proposes a new explanation using a random search framework based on Burdett and Judd (1983). I show that the values of international trade flows as a share of income are generally larger in high-income countries because the markups in high-income countries are generally larger than those in low-income countries. In addition, firms’ price setting strategy creates an endogenous wedge between bilateral trade flow and gains from trade.

scholarly journals Corruption, Economic Development and Haze Pollution: Evidence from 139 Global Countries

2020 ◽  
Vol 12 (9) ◽  
pp. 3523 ◽  
Author(s):  
Yajie Liu ◽  
Feng Dong
Keyword(s):  
Economic Development ◽  
Low Income ◽  
Explanatory Power ◽  
Spatial Differentiation ◽  
Institutional Quality ◽  
High Income ◽  
Low Income Countries ◽  
Economic Losses ◽  
Haze Pollution ◽  
Per Capita

Long-term exposure to haze pollution will not only affect citizens’ health and shorten their life expectancy, but also cause unpredictable economic losses. In addition, it has become the focus of worldwide concern whether and how institutional quality affects haze pollution. In this study, we explored the impacts of political corruption on haze pollution in 139 global countries. We employed a geographical detector model to identify the driving factors of spatial differentiation in global haze pollution. In addition, corruption degree and per capita gross domestic production (GDP) were used as threshold variables to analyze whether there is a nonlinear relationship between corruption and haze pollution. The main results are as follows. (1) The corruption perception index (CPI) was negatively correlated with haze pollution and had a strong and stable explanatory power for the heterogeneity of haze pollution. Besides, the degree of corruption had a significant triple threshold effect on haze pollution. When the CPI crossed the double threshold value, strengthening institutional quality could inhibit haze pollution. (2) Per capita GDP significantly determined how institutional quality exerted an effect on haze pollution, which was also a key factor affecting spatial heterogeneity of PM2.5 concentration. In high-income countries, choosing a more honest ruling party could substantially reduce haze pollution, while in low-income countries, an incompetent government could increase the degree of haze pollution. (3) The “Matthew effect” was manifested in our study. It indicated that the higher was the level of economic development, the lower was the severity of haze pollution. Based on these results, we state that policy makers cannot simply alleviate haze pollution through anti-corruption construction. For low-income countries, ensuring economic growth is the prerequisite for the substantial alleviation of haze pollution. On the contrary, high-income countries should pay more attention to the integrity of government institutions and strengthen the awareness of anti-corruption.

scholarly journals Measuring the impact of agricultural production shocks on international trade flows

2019 ◽  
Vol 47 (3) ◽  
pp. 1094-1132
Author(s):  
Shon M Ferguson ◽  
Johan Gars
Keyword(s):  
Agricultural Production ◽  
Food Production ◽  
Bilateral Trade ◽  
Trade Flow ◽  
Trade Costs ◽  
Trade Flows ◽  
Unit Value ◽  
Cent Increase ◽  
Bilateral Trade Flow ◽  
The Impact

Abstract The purpose of this study is to measure the sensitivity of traded quantities and trade unit values to agricultural production shocks. We develop a general equilibrium model of trade in which production shocks in exporting countries affect both traded quantities and trade unit values. The model includes per-unit trade costs and develops a methodology to quantify their size exploiting the trade unit value data. Using bilateral trade flow data for a large sample of countries and agricultural commodities, we find that the intensive margin of trade is relatively inelastic to production shocks, with a 1 per cent increase in production leading to a 0.5 per cent increase in exports. We also find that per-unit trade costs are large, comprising 15–20 per cent of import unit values on average. Overall, our results suggest that there is room for improving trade as a mechanism for coping with food production volatility.

Do Macroeconomic Determinants of Non-Performing Loans Vary with the Income Levels of Countries?

2018 ◽  
Vol 6 (6) ◽  
pp. 512-531
Author(s):  
Laxmi Koju ◽  
Ghulam Abbas ◽  
Shouyang Wang
Keyword(s):  
Low Income ◽  
Inflation Rate ◽  
Banking System ◽  
High Income ◽  
Low Income Countries ◽  
Middle Income ◽  
Income Levels ◽  
Official Exchange Rate ◽  
Per Capita ◽  
Macroeconomic Determinants

Abstract This paper explores the macroeconomic determinants of non-performing loans (NPL) in 19 Asian countries (low to high income economies) using the Generalized Method of Moments estimation approach based on the economic data for the period between 1998 and 2015. The categorization of the economies is based on the average gross national income per capita as set by the World Bank. Specifically, the paper aims to evaluate if the determinants of NPL vary with the income levels of the countries. The results indicate that the NPL is strongly influenced by the inflation rate. The effect is, however, negative in the high-income and the middle-income countries and positive in the low-income countries. The GDP per capita has a dynamic negative relationship with the NPL in the high-income and the low-income countries. The remittance has a significant positive association in the high-income and a significant negative association in the low-income countries. Similarly, the unemployment rate has a positive effect on NPL in the middle-income and the low-income countries. With the rise in the official exchange rate, the NPL level increases in the low-income countries. The overall estimation results suggest that the NPL in Asian banking system depend on some key macroeconomic variables, such as unemployment rate, inflation rate, official exchange rate, remittance received and gross domestic product per capita, and these associations vary with the income level of the countries. Therefore, economic level of a country should be carefully considered while formulating credit policy to minimize credit risks in the banking system.

On the structure of the present-day convergence

2014 ◽  
Vol 31 (2/3) ◽  
pp. 139-152 ◽  
Author(s):  
Andrey Korotayev ◽  
Julia Zinkina
Keyword(s):  
Global Convergence ◽  
Low Income ◽  
High Income ◽  
Low Income Countries ◽  
Unconditional Convergence ◽  
Gdp Per Capita ◽  
Middle Income ◽  
Content Type ◽  
Middle Income Countries ◽  
Per Capita

Purpose – A substantial number of researchers have investigated the global economic dynamics of this time to disprove unconditional convergence and refute its very idea, stating the phenomenon of conditional convergence instead. However, most respective papers limit their investigation period with the early or mid-2000s. In the authors’ opinion, some of the global trends which revealed themselves particularly clearly in the second half of the 2000s call for a revision of the convergence issue. The paper aims to discuss these issues. Design/methodology/approach – Several methodologies for measuring the global convergence/divergence trends exist in the economic literature. This paper seeks to contribute to the existing literature on unconditional β-convergence of the per capita incomes at the global level. Findings – In the recent years, the gap between high-income and middle-income countries is decreasing especially rapidly. The gap between high-income and low-income countries, meanwhile, is decreasing at a much slower pace. At the same time, the gap between middle-income and low-income countries is actually widening. Indeed, in the early 1980s GDP per capita in the low-income countries was on average three times lower than in the middle-income countries, and this gap was totally overshadowed by the more than ten-time abyss between the middle-income and the high-income countries. Now, however, the GDP per capita in low-income countries lags behind the middle-income ones by more than five times, which is largely the same as the gap (rapidly contracting in the recent years) between the high-income and the middle-income countries. This clearly suggests that the configuration of the world system has experienced a very significant transformation in the recent 30 years. Research limitations/implications – The research concentrates upon the dynamics of the gap in per capita income between the high-income, the middle-income, and the low-income countries. Originality/value – This paper's originality/value lies in drawing attention to the specific changes in the structure of global convergence/divergence patterns and their implications for the low-income countries.

scholarly journals The application of gravity equation while accessing the environment of Pakistan-ASEAN technological trade flows

2021 ◽  
Vol 9 (1) ◽  
pp. 29-42
Author(s):  
Muhammad Saqib Irshad ◽  
Zhang Jian Wu ◽  
Qi Xin ◽  
Jahangir Khan
Keyword(s):  
Bilateral Trade ◽  
Trade Flow ◽  
Trade Agreement ◽  
Trade Flows ◽  
Positive Sign ◽  
High Tech ◽  
Trade Patterns ◽  
Human Environment ◽  
Economic Association ◽  
Bilateral Trade Flow

International trade, an important economic activity, has affected the human environment in varying degrees since its beginning. This research will carry out calculations and analyses on Pakistan-ASEAN bilateral and technological trade flows at a disaggregated level over 1995-2018. The current study found that medium-tech, high-tech, and low-tech trade flows, enhance economic growth in Pakistan and ASEAN, negatively impacting geographical distance by all technological trade flows. Similarly, the proportional element endowment confirms the Hecksher-Ohlin hypothesis. Yet, the perspective argues that countries with high production levels can exchange faster than their countries with lower output levels. Due to the variety in consumers’ taste, increased similarity yields increased technological trade volumes, highest values received by medium-tech trade flow, and total bilateral trade flow. Depreciation in exchange rates showing a positive sign for total bilateral trade, low-tech trade, and high-tech trade, whereas unenthusiastic in the case of medium-tech trade flow between Pakistan-ASEAN nations. Free trade agreement and WTO membership will also foster trade activities in conscientious and economic association in ecumenical. Pakistan trade patterns are different from ASEAN trade patterns, which increased the opportunity to enhance business activities.

Institutional Quality and Trade Flow: Empirical Evidence from Malaysia and Other OIC Member Countries in Africa

2021 ◽  
pp. 097508782098717
Author(s):  
Hammed Agboola Yusuf ◽  
Luqman Olanrewaju Afolabi ◽  
Waliu Olawale Shittu ◽  
Kafilah Lola Gold ◽  
Murtala Muhammad
Keyword(s):  
Economic Growth ◽  
Bilateral Trade ◽  
Trade Flow ◽  
Estimation Method ◽  
Institutional Quality ◽  
Likelihood Estimation ◽  
Political Stability ◽  
Bilateral Trade Flow ◽  
World Governance Indicators ◽  
The Impact

This article examines the impact of institutional quality on bilateral trade flow between Malaysia and selected 25 African Organisation of Islamic Cooperation (OIC) member countries. Four institutional qualities were selected from World Governance Indicators with other trade predictors from the period from 1985 to 2016. Using gravity model of trade and Poisson pseudo-maximum likelihood estimation method (PPML) technique, the results confirm that government effectiveness, regulatory quality and political stability have an adverse effect on bilateral trade flow among the OIC countries in Africa. On the other hand, these institutional quality variables were considered as a strength for Malaysian economic growth. Therefore, better institutional quality reforms are needed among OIC member countries in Africa in order to accelerate trade, economic growth and development in their region.

scholarly journals Pediatric neurosurgical workforce, access to care, equipment and training needs worldwide

2018 ◽  
Vol 45 (4) ◽  
pp. E13 ◽  
Author(s):  
Michael C. Dewan ◽  
Ronnie E. Baticulon ◽  
Abbas Rattani ◽  
James M. Johnston ◽  
Benjamin C. Warf ◽  
...  
Keyword(s):  
Low Income ◽  
International Collaboration ◽  
Eastern Mediterranean ◽  
Training Needs ◽  
High Income ◽  
Low Income Countries ◽  
Middle Income ◽  
Middle Income Countries ◽  
Surgical Workforce ◽  
And Training

OBJECTIVEThe presence and capability of existing pediatric neurosurgical care worldwide is unknown. The objective of this study was to solicit the expertise of specialists to quantify the geographic representation of pediatric neurosurgeons, access to specialist care, and equipment and training needs globally.METHODSA mixed-question survey was sent to surgeon members of several international neurosurgical and general pediatric surgical societies via a web-based platform. Respondents answered questions on 5 categories: surgeon demographics and training, hospital and practice details, surgical workforce and access to neurosurgical care, training and equipment needs, and desire for international collaboration. Responses were anonymized and analyzed using Stata software.RESULTSA total of 459 surgeons from 76 countries responded. Pediatric neurosurgeons in high-income and upper-middle-income countries underwent formal pediatric training at a greater rate than surgeons in low- and lower-middle-income countries (89.5% vs 54.4%). There are an estimated 2297 pediatric neurosurgeons in practice globally, with 85.6% operating in high-income and upper-middle-income countries. In low- and lower-middle-income countries, roughly 330 pediatric neurosurgeons care for a total child population of 1.2 billion. In low-income countries in Africa, the density of pediatric neurosurgeons is roughly 1 per 30 million children. A higher proportion of patients in low- and lower-middle-income countries must travel > 2 hours to seek emergency neurosurgical care, relative to high-income countries (75.6% vs 33.6%, p < 0.001). Vast basic and essential training and equipment needs exist, particularly low- and lower-middle-income countries within Africa, South America, the Eastern Mediterranean, and South-East Asia. Eighty-nine percent of respondents demonstrated an interest in international collaboration for the purposes of pediatric neurosurgical capacity building.CONCLUSIONSWide disparity in the access to pediatric neurosurgical care exists globally. In low- and lower-middle-income countries, wherein there exists the greatest burden of pediatric neurosurgical disease, there is a grossly insufficient presence of capable providers and equipped facilities. Neurosurgeons across income groups and geographic regions share a desire for collaboration and partnership.

scholarly journals The effect of physical activity on mortality and cardiovascular disease in 130 000 people from 17 high-income, middle-income, and low-income countries: the PURE study

The Lancet ◽  
2017 ◽  
Vol 390 (10113) ◽  
pp. 2643-2654 ◽  
Author(s):  
Scott A Lear ◽  
Weihong Hu ◽  
Sumathy Rangarajan ◽  
Danijela Gasevic ◽  
Darryl Leong ◽  
...  
Keyword(s):  
Physical Activity ◽  
Cardiovascular Disease ◽  
Low Income ◽  
High Income ◽  
Low Income Countries ◽  
Middle Income

Comparative Analysis of Mobile Pain Management Applications in Developed versus Developing Countries (Preprint)

2021 ◽  
Author(s):  
Wilson Mupfururirwa ◽  
Victoria Nembaware ◽  
Jack Morrice ◽  
Khuthala Mnika ◽  
Gaston Kuzamunu Mazandu ◽  
...  
Keyword(s):  
Pain Management ◽  
Uniform Distribution ◽  
Mobile Health ◽  
Low Income ◽  
Cochrane Review ◽  
High Income ◽  
Low Income Countries ◽  
App Store ◽  
Significant Difference ◽  
The Impact

BACKGROUND The impact of mobile phones and their applications in healthcare (mobile health) is well established for a range of diseases and cross-cutting complications, such as pain. While numerous mobile health (mHealth) pain interventions have been established, an evaluation of their prevalence, adequacy and distribution remains limited. OBJECTIVE This study aims at reviewing and comparing current pain management mHealth tools in high- versus low-income countries. METHODS A literature and application (app) store search was conducted in May 2021 using combinations of the following keywords: “pain management”, “pain”, “mobile health”, “telemedicine”, and “app”. Literature searches were conducted in PubMed, Scopus, Cochrane Review Library, and Google scholar. App store searches were conducted in Google Play and Apple App Store. Data characteristics descriptive analysis was performed using R software to summarize different datasets and compute p-values (P) for testing the significance of different hypotheses with the significance level set to 0.05. RESULTS The search identified 40 publications (literature search) and 230 mHealth applications (app store search), revealing a non uniform distribution of search categories (χ2= 133.7, P < 0.004) with a ratio approximating 1:6 (OR = 5.730, 95%CI:3.745-8.909, P < 0.004). About 86.7% of these 270 applications (apps) are from high-income countries, showing a statistically significant non uniform distribution of country categories: high- and low-income (χ2= 145.2, P < 0.004) approximating the theoretical distribution of a 7:1 ratio (OR = 6.476, 95%CI:4.180-10.222, P < 0.004). Moreover, there is no significant difference in the proportion of search categories between country categories ( χ2= 0.113, P = 0.737) and the difference in pain app prevalence in high- versus low-income countries is not statistically significant. Finally, we have observed that pain-tracking apps are significantly more prevalent in developed countries in comparison to low-income countries. CONCLUSIONS As expected, pain management app prevalence is higher in high-income countries. However, more research is required to readily comprehend the effectiveness of these apps.

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