Determinants of Trade Openness in Transitional Economies: Does the Complementarity between Foreign Direct Investment and Human Capital Development Matter?

Tsaurai, Kunofiwa

doi:10.35808/ijeba/675

Cited by 7 publications

(7 citation statements)

References 14 publications

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“…These attributes might include knowledge, skills, expertise, good health, education, and so on. The findings of Tsaurai [ 33 ] reverberate the findings of Becker [ 34 ], who noted that high levels of human capital development mean that individuals are talented, educated, and trained. They are also believed to be more productive, more marketable, and more likely to find a job that pays a higher salary.…”

Section: Literature Reviewmentioning

confidence: 78%

Do positive and negative shocks of tourism development affect income inequality in a developed country?

Bui Hoang

2024

PLoS ONE

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Income inequality is an essential cause of violence, stagnant development, and political instability. This study will examine the positive and negative shocks in tourism development, and the distribution of the interaction between tourism development, economic growth, human capital, globalization, and income inequality will be discussed in Singapore, a developed and top-visited country. By adopting autoregressive distributed lag and non-linear autoregressive distributed lag approaches for panel data from 1978 to 2022, the results indicate an asymmetric cointegration among variables, and positive and negative changes in tourism development lead to decreased income inequality. More specifically, the asymmetric effect of tourism is found both in the short- and long-term, and positive shock has a greater impact than negative shock. At the same time, the findings also reveal that economic growth and globalization enhance, while human capital negatively affects income inequality in Singapore. These findings strengthen the belief of Singapore policy-makers and recommend several significant lessons for developing countries to promote tourism, sustainable development, and reduce income inequality.

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Section: Literature Reviewmentioning

confidence: 78%

Do positive and negative shocks of tourism development affect income inequality in a developed country?

Bui Hoang

2024

PLoS ONE

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“…Table 8 indicates that there are, at most, eight co-integrating relationships among the variables, itself evidence that a long-run relationship exists. Consistent with Tsaurai (2021), the existence of a long-run relationship allowed the study to proceed to the next stage (final data analysis).…”

Section: Pre-estimation Diagnosticsmentioning

confidence: 83%

“…Except for savings and domestic investment, the other variables' probabilities of the Jarque-Bera criteria equate to zero. Such results mean that the data for most variables do not follow a nor-mal distribution, consistent with Tsaurai (2021). Following Tsaurai (2020), this study addressed the econometrics problems (data not following a normal distribution pattern, extreme values, multi-collinearity problem) using natural logarithm data for the main data analysis.…”

Section: Pre-estimation Diagnosticsmentioning

confidence: 99%

Foreign Direct Investment Inflow Dynamics: The Case of Central and Eastern Europe

Tsaurai

2023

CER

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This study investigates the dynamics of foreign direct investment (FDI) inflows into Central and Eastern European countries (CEECs) using panel data (1994–2020) analysis methods such as fixed effects, fully modified ordinary least squares (FMOLS) and random effects. Specifically, the study examined what factors could account for the mixed pattern of FDI inflows into CEECs. The mixed results from the existing empirical literature on FDI inflow dynamics triggered the undertaking of this study to contribute to the ongoing debate on the subject. The study notes that infrastructural development, economic growth and domestic investment had a significant positive influence on FDI across all three panel data analysis methods. Other variables that were found to have had a significant positive effect on FDI include (1) complementarity between infrastructural and financial development (fixed effects, random effects), (2) trade openness (fixed effects) and (3) savings (random effects, FMOLS). A significant negative impact of the exchange rate on FDI was observed under the FMOLS. CEECs are therefore urged to implement policies to increase infrastructural development, financial development, trade openness and savings to enhance the inflow of FDI. Future studies should investigate the minimum threshold levels of the explanatory variables of FDI.

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“…The theoretical framework derives its foundation from seminal works by Spillan and Verzi (2017), Abdoulrahaman and Jun (2021), and Okenna and Adesanya (2020), who comprehensively explored the principal determinants of international trade within the context of emerging economies. Figure 1 elucidates the schematic representation of the theoretical framework that underpins the present study.…”

Section: Literature Review and Theoretical Frameworkmentioning

confidence: 99%

Analyzing Bilateral Trade Dynamics between Azerbaijan and Pakistan: A Robust Least Squares Regression Approach

Niftiyev

2024

JEA

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<p class="MsoNormal" style="margin-top: 12pt; text-align: justify;"><span lang="EN-US" style="font-family: 'times new roman', times, serif; font-size: 14pt;">The diplomatic relations between Azerbaijan and Pakistan have undergone significant development since the late 1990s. Despite some studies focusing on diplomatic and political relations, the economic dimension of this partnership has not been systematically covered. In this paper, a robust least squares (RLS) approach is used to model bilateral trade between the two countries and identify statistically significant determinants, including economic, institutional, and cultural factors, after analyzing the main economic and subsectoral trade dynamics of both countries. The results reveal that Azerbaijan's imports from Pakistan are significantly associated with the country's higher income and market size, while Pakistan's elevated exchange rate and trade costs hinder bilateral trade. In addition, Pakistan's rising manufacturing output increases exports to Azerbaijan but decreases imports from Azerbaijan. Among institutional determinants, government effectiveness, the trade freedom index (TFI), and political stability play significant roles in bilateral trade. Lastly, it was found that cultural proximity increases Pakistani exports to Azerbaijan but not imports from Azerbaijan. The analysis also indicates that domestic savings stimulate Pakistani exports. These findings underscore the complex nature of bilateral trade between Azerbaijan and Pakistan and highlight the need for institutional arrangements to harmonize trade flows and boost welfare gains from trade. The results may be of great importance to intergovernmental working groups, domestic policymakers, and businesses.</span></p>

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Determinants of Trade Openness in Transitional Economies: Does the Complementarity between Foreign Direct Investment and Human Capital Development Matter?

Cited by 7 publications

References 14 publications

Do positive and negative shocks of tourism development affect income inequality in a developed country?

Do positive and negative shocks of tourism development affect income inequality in a developed country?

Foreign Direct Investment Inflow Dynamics: The Case of Central and Eastern Europe

Analyzing Bilateral Trade Dynamics between Azerbaijan and Pakistan: A Robust Least Squares Regression Approach

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