Structural economic vulnerability, openness and bilateral development aid flows

Gnangnon, Sèna Kimm

doi:10.1016/j.eap.2016.12.001

Cited by 12 publications

(8 citation statements)

References 54 publications

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“…Similarly, the size of the population could positively influence FDI inflows if the main objective of the multinationals undertaking the FDI in a host country is to serve the domestic market. However, if the chief motivation of these multinationals is to export either to neighbouring countries of the host countries or to the countries pertaining to the same regional integration area with the host country, or even to the rest of the world in general, then the population would matter less for attracting these FDIs (e.g., Gnangnon & Iyer, 2017). As for remittances, we argue here that the small countries, that is, those with a small population, likely face significant constraints on trade and economic growth opportunities that remittances could alleviate.…”

Section: Discussion On the Other Possible Determinants Of Diversificamentioning

confidence: 99%

“…The bulk of studies, which in the development literature have examined the determinants of these three external financial flows for development, have been conducted by separating the analysis for each type of external financial flows for development. Among these studies, those that have examined the role of trade in mobilizing the external financial flows for development include, for example, Alesina and Dollar (2000) and Gnangnon (2017) for ODA inflows, and Markusen (1984), Helpman and Krugman (1985), Markusen and Venables (1995), Edwards (1992), Gastanaga, Nugent, and Pashamova (1998), Asiedu (2002), and Brun and Gnangnon (2017) for FDI inflows. Concerning remittances inflows, there is—to the best of our knowledge—no such study that has examined the impact of trade openness on remittances flows, although some studies (e.g., Head and Ries, 1998; Markusen, 1983; Mundell, 1957; Rauch, 2001; Richards, 1994) have looked at the relationship between trade and migration, which may be considered as an indirect way to assess or examine the impact of trade openness on remittances.…”

Section: Introductionmentioning

confidence: 99%

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Trade Openness and Diversification of External Financial Flows for Development: An Empirical Analysis

Gnangnon

2020

South Asian Journal of Macroeconomics and Public Finance

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The implementation of sustainable development goals (SDGs) adopted in 2015 by the international community in the Agenda 2030 requires a substantial mobilization of financial resources. In the meantime, Goal 17 of this Agenda recognizes trade as an important means of the implementation of the SDGs. The current article investigates empirically the impact of openness to international trade on the diversification of external financial flows for development, which could help developing countries achieve the SDGs by 2030. To that end, three major external flows for development have been considered: development aid inflows, migrants’ remittances inflows and foreign direct investment (FDI) inflows. The analysis relies on a panel data set comprising 116 countries, over the period 1970–2017. The empirical analysis relies primarily on the two-step system generalized method of moments (GMM) approach and shows that greater trade openness exerts a positive and significant impact on the diversification of external financial flows for development, in particular, in the least developed countries (LDCs). As a result, greater openness to international trade could be an important tool for external capital flows diversification in developing countries. JEL Classification: F13, F14, F21, F24, F35, O20

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Section: Discussion On the Other Possible Determinants Of Diversificamentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Trade Openness and Diversification of External Financial Flows for Development: An Empirical Analysis

Gnangnon

2020

South Asian Journal of Macroeconomics and Public Finance

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“…Contrary to the Economic Vulnerability Index of the Foundation for International Development Studies and Research which takes account the economic risk of States and uses indicators of high instability, the State Fragility Index combines economic, political, social, security and environmental indicators on a scale that takes into account the level of fragility depending on whether it's low, medium or extreme (McKay and Thorbecke, 2019). For Gnangnon (2017), the economic vulnerability index provides more information about the macroeconomic shock a country can bear. It's limited to measure fragility associated with macroeconomic disruptions, which in many cases are at the level of the continued decline in economic growth.…”

Section: Empirical Modelmentioning

confidence: 99%

Does Institutional Quality Increase Fragilities in Africa? A Recent Analysis .

EKASSI¹,

Nkoa²,

Song³

2021

IJSSER

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In this article, we appreciate the effects of institutional quality on five dimensions of fragilities in Africa: economic, political, social, security and environmental. From a sample of 51 countries, we estimate a model in panel data by the Two Stage Least Square (2SLS), so robustness is tested by a Probit model over the period 1995-2016. Our results show that, Corruption, Rule of Law and Regulation quality increase global, economic, political, social, security and environmental fragilities in Africa. We then suggest the strengthening of institutional quality through the implementation of a people-based democratic system where the leadership commitment is a priority.

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“…This, in turn, can be accompanied by diversification of production and exports, and As a result, it creates lower structural vulnerabilities. Trade openness can improve export opportunities by increasing the number of exporters in those countries [14]. Developed countries (with better institutions and higher worker productivity) and Developing countries also specialize in more complex areas.…”

Section: Trade Openness (Out)mentioning

confidence: 99%

Presenting a Model of Interpretive Structural Method in Order to Rank the Strategic Factors on the Development of Foreign Trade Studied in Iran-Iraq Trade

Rostami¹

2020

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The environment in foreign trade is dynamic and complex. Today, the promotion and development of foreign trade requires the adoption of newer strategies. Iran's location in West Asia and having valuable mineral resources has a strategic position. In this study to design a structural model The purpose of this article is to identify the governing factors necessary for the realization of Iran's foreign trade in the region, to examine the relationship between them and to prioritize them for its importance. A set of new strategies And effectively obtained from a complete review of the literature and opinions of 10 experts. Then content-related relationships were selected for each pair. In addition, a hierarchical interpretive structural model was created using a structural interpretive technique. The findings of this study classify the effective factors based on driving power, influence and dependence. The findings show that knowledge-based economy is the underlying factor and the import substitution variable is one of the most dependent factors of the ISM model. These economic agreements as a model variable relationship with the impact Ray and susceptibility with high penetration and dependence, can be the intersection between other components of the model.

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Structural economic vulnerability, openness and bilateral development aid flows

Cited by 12 publications

References 54 publications

Trade Openness and Diversification of External Financial Flows for Development: An Empirical Analysis

Trade Openness and Diversification of External Financial Flows for Development: An Empirical Analysis

Does Institutional Quality Increase Fragilities in Africa? A Recent Analysis .

Presenting a Model of Interpretive Structural Method in Order to Rank the Strategic Factors on the Development of Foreign Trade Studied in Iran-Iraq Trade

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