The paper provides empirical evidence regarding the impact of foreign aid, remittances, and foreign direct investment (FDI) on food security of African countries. Using data from 37 African countries over two decades (2001-2020), and employing an estimation strategy that accounts for both endogeneity and unobserved heterogeneity, we examine the relationship between financial flows and food security - proxied by average energy supply adequacy and per capita food supply variability. Our findings indicate that the effect of foreign aid on food security depends on how broadly/narrowly we measure foreign aid. While the broad measure, official development assistance, does not seem to have a significant impact on food security, narrowly defined aid affects food security in a significant way. The other two financial flow variables (FDI and remittances) show mixed impact on food security over the period of the study. Our results are robust to various model specifications and estimation strategy.
Members of the World Trade Organization (WTO) adopted in 2011 a Decision ("LDC Services Waiver") that allows any WTO Member to offer preferential treatment to the services and service suppliers of least developed countries (LDCs). The present analysis investigates whether the LDC Services Waiver Decision has been instrumental in dampening the volatility of LDCs' commercial services exports. The analysis covers the treatment group of 43 LDCs and two control groups, over the period from 2004 to 2019, with the treatment period (i.e., period of operationalisation of the Waiver) being 2014-2019. Based primarily on the random-effects Mundlak estimator, the empirical exercise supports the hypothesis that the LDC Services Waiver has helped dampen the volatility of total commercial services exports, notably that of modern commercial services. Thus, meaningful preferences to LDCs under the Services Waiver, provide significant benefits to LDCs, including in terms of services exports stability.
Since introducing the news-based policy uncertainty measure by Baker et al (2016), the Policy Uncertainty Group and others have constructed different index measures for various countries and regions worldwide. In this paper, we consider the European Policy Uncertainty (EPU) measure, which has experienced the largest jump, as a result of the Russian-Ukraine war, and assess its impact on the export earnings of 44 European countries. Using monthly data and linear as well as nonlinear ARDL approaches, we find that in almost all countries, the uncertainty measure has short-run asymmetric effects on their export earnings. Short-run effects, however, last into the long run only in 16 countries. Given substitution effects, increased uncertainty in Europe has boosted the export earnings of these 16 countries. These 16 are Albania, Armenia, Croatia, Cyprus, Greece, Iceland, Moldova, Montenegro, Netherlands, Russia, Slovenia, Spain, Sweden, Switzerland, Ukraine, and the United Kingdom.
Exports have long been shown as being important in driving economic growth and development. The development and export of high-tech products has been shown to play a particularly significant role in this. But how do lesser-developed countries develop such products and thus progress to higher levels of income and economic development-by imitation or innovation? This is a dynamic process that warrants being revisited regularly, given also the mixed empirical results in the extant literature. In this study we focus on the high-tech exports of a panel of eight newly industrialised countries (NICs) over 1996-2016. We make two important contributions to the literature: we focus on the country-level, complementing the considerable literature analysing firm-level effects; and we analyse jointly the relationships between patents, research and development (R&D) expenditure and the export of high-tech goods. Employing panel cointegration and panel Granger causality testing procedures, we reject the imitation hypothesis: NICs are engaging in product innovation with R&D activities leading to patents that provide long-run export benefits. Our results also support the self-selection hypothesis over learning-by-exporting in the dynamics of trade-led economic development. NICs' research and innovation activity suggests a growing dynamic benefit in terms of export-led-growth via a focus on high-tech exports.
This study examines the impact of healthcare on carbon emissions, economic growth and renewable energy adoption in Asian economies, utilising panel data from 2000 to 2019. The research employs a comprehensive set of econometric techniques, including first and second-generation unit root tests (ADF, PP, CADF, CIPS), co-integration tests (Wester Lund, Kao), and estimation methods (FMOLS, DOLS). Key findings reveal a positive long-term relationship between carbon emissions and healthcare spending, while highlighting the environmental consequences of decades of rapid, energy-intensive economic growth. The study identifies air quality as a crucial factor in the relationship between environmental conditions and population health in densely populated areas. Interestingly, Southeast Asia presents a unique case where increased healthcare expenditure correlates with improved carbon efficiency. The research concludes by emphasising the need for more effective regulations to mitigate carbon emissions and ensure a sustainable future, underscoring the complex interplay between economic development, environmental impact, and public health in Asian economies.
