Measuring the impact of violence on macroeconomic instability: evidence from developing countries

Haroon, Rabia; Jehan, Zainab

doi:10.1007/s10258-020-00188-y

Cited by 4 publications

(1 citation statement)

References 47 publications

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“…Regarding previous research that misalignment of growth and actual exchange rates using panel data analysis has grown substantially in the past, and evidence shows that the more depreciated is the country's actual exchange, the faster its long-term growth is. This study shows that significant exchange rates impact developing and developing countries where institutional fragility and a lack of macroeconomic stability are standard features over the last few decades (Haroon & Jehan, 2020).…”

Section: Literature Reviewmentioning

confidence: 83%

Volatility Exchange Rate and Economic Growth: Insight from ASEAN Member Countries

Ahmad

Kuncoro

Harmuzan

et al. 2021

Sci. Ann. Econ. Bus.

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This study aims to determine the effect of exchange rate volatility on economic growth in the ASEAN member countries (Indonesia, Thailand, Vietnam, and Cambodia) through investment. Based on the previous studies, the researcher focuses on developing the initial research analysis because it can control different company levels' characteristics and then determine the impact of exchange rate changes on economic growth mediated by investment. There is a limited analysis of whether exchange rate movements encourage overall investment in this study's particular direction. The author's primary focus is whether the export or import channels or both play an essential role in determining a company's investment. This study's population is in ASEAN member countries that have been published by the World Bank (https://www.worldbank.org/) and continue to exist during the period 1998-2019. The sample selection in this study used a purposive sampling method. Some of the ratio data were available in the financial report summary. The analysis method used in the study is the path analysis.

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Section: Literature Reviewmentioning

confidence: 83%

Volatility Exchange Rate and Economic Growth: Insight from ASEAN Member Countries

Ahmad

Kuncoro

Harmuzan

et al. 2021

Sci. Ann. Econ. Bus.

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The impact of conflict on food security: evidence from household data in Ethiopia and Malawi

Muriuki,

Hudson,

Fuad

2023

Agric & Food Secur

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Background Violent conflicts threaten food security and household welfare in sub-Saharan Africa. While a more robust understanding of the causal relationship between food security and conflict is vital in mitigating food insecurity and bolstering peace prospects, only limited research exists on this topic, especially at the household level where estimations are more empirically challenging given data constraints and identification issues. Our analysis utilizes a newly developed and novel difference-in-differences model developed by de Chaisemartin and D’Haultfoeuille (2020) to determine the causal relationship between violent conflicts and food security in two sub-Saharan African countries—Malawi and Ethiopia using household-level data from the World Bank’s Household Living Standards Measurement Survey. Results Our results suggest that exposure to violent conflict on average decreases the food consumption score (FCS) by 6.84 units, which corresponds to a 16.13% reduction in FCS. With respect to individual countries, Malawi shows the largest effect-size, with the FCS decreasing by 10.54 units (equivalent to a 20.22% reduction in FCS). In Ethiopia, the causal estimate was slightly smaller at − 4.32 (equivalent to a 11.67% reduction in FCS) although the baseline food security status was lower relative to Malawi. Disaggregated analyses show that the effect-size can be several orders of magnitude larger when conflict is experienced simultaneously with natural shocks. Robustness checks using different iterations of propensity score matching generate comparable causal estimates and reinforce the overall findings. Conclusions The findings help improve our understanding of a broader issue by providing new direct and granular evidence regarding the relationship between conflict and food security using household data. The results hold implications for aid and humanitarian efforts to help households facing food insecurity stemming from violence and other factors.

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Government expenditure and macroeconomic stability conundrum in Zimbabwe

Maduku

Mazorodze

2021

Economics of Development

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The objective of this paper was to explore the effect of government expenditure growth on macroeconomic stability in Zimbabwe. Public expenditure has grown over time but as per a priori expectations, other macroeconomic variables have not been forth coming. What the country has actually experienced is prolonged macroeconomic instability. The paper contributes to the body of literature in two ways, (1) by creating a macroeconomic instability index and (2) by being the first in the Zimbabwean context to explore this conundrum. To achieve the main objective of the paper, the study used a cointegrated vector error correction model (VECM) and Granger causality with data spanning 1981 to 2019. The study did not find a statistically significant relationship between government expenditure and macroeconomic stability as argued mostly by the Keynesians. However, according to a priori expectations, the relationship turned out to be rightly negative. To buttress the Cointegrated-VECM results, granger causality tests were also conducted where no causality was found from government spending to macroeconomic stability, and vice versa (causality running from instability to government spending). This paper recommends that, Zimbabwe’s policy makers may need to consider proactive government spending or policies, since that helps the economy to successfully avoid possible risks such as macroeconomic instability. When policies are proactive rather than reactive, that helps by seizing untapped opportunities, and the economy justly avoids consequences of reactive governance.

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Measuring the impact of violence on macroeconomic instability: evidence from developing countries

Cited by 4 publications

References 47 publications

Volatility Exchange Rate and Economic Growth: Insight from ASEAN Member Countries

Volatility Exchange Rate and Economic Growth: Insight from ASEAN Member Countries

The impact of conflict on food security: evidence from household data in Ethiopia and Malawi

Government expenditure and macroeconomic stability conundrum in Zimbabwe

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