• KDI Journal of Economic Policy
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• v.40 no.3
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• pp.91-115
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• 2018

This paper aims to identify the most effective mode of development finance flows for the economic growth of middle-income developing and least developed countries, separately. It also attempts to confirm whether governance has any significant role in the causal relationship between development finance flows and economic growth. Policymakers in each developing country should select the most effective modality of development finance inflows among the different modalities (such as Official Development Assistance (ODA) grants, Official Development Assistance (ODA) loans, FDI, and international personal remittances) and expand it for their economic growth. Dynamic panel regression models were used on 48 least developed countries and 89 middle-income developing countries, respectively, during the Millennium Development Era: 2000-2015. The empirical analysis results show that ODA grants and remittances were most effective in promoting economic growth for least developed countries, while FDI was most effective for middle-income developing countries. These findings were not affected by the status of governance of the individual country.

• The Journal of Asian Finance, Economics and Business
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• v.7 no.7
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• pp.251-260
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• 2020

The purpose of this paper is to investigate the impact of total factor productivity (TFP), institutional quality, and interactive variable between them on economic growth in 13 low-middle income countries in Asia for the period 2000-2018. The paper uses the difference Generalized Method of Moments (GMM) to explore the dataset provided by the World Bank. The empirical results show that TFP and the interactive variable positively impact on the economic growth, while the institutional determinants have a negative influence. The negative effect is explained by the weak institutions in these low-middle income countries. The findings of the study suggest two points. First, the government should continue to improve TFP, which is associated with the application of technical advances, technological innovations, improvement of management methods, and skilled workers. Second, far more important, is that the authorities should pay special attention to implement institutional reform and strengthen the governance in the future. The successful experiences from Japan, Korea and Singapore will help other governments in Asian low-middle income countries to build developmental state. Probably, the developmental state actively interfere in the market to promote and realize the development goals. By doing so, these economies might overcome the so-called "middle-income trap".

• Korea Trade Review
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• v.41 no.4
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• pp.1-19
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• 2016

This paper analyzed what determines affected FDI inflow of developing countries by using panel data from 65 lower-middle income and low income countries(Asia, Africa and Latin America). Empirical results showed that economic growth has a more positive impact on a middle income country than a lower one, and has a better impact on the Asian continent than others. Trade has similar effect on lower and middle income countries, respectively. ODA, however, has a negative effect on both sides, regardless of the continent. Industrial value added rate and labor force have a positive effect on FDI in low and middle income countries. Infrastructure was found to be a significant impact on FDI inflows in lower-middle income countries than in low income countries. There is no geographically significant difference except Africa.

• Safety and Health at Work
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• v.9 no.4
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• pp.365-371
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• 2018

This article addresses three key issues. First, the commonalities, differences, strengths, and limitations of existing occupational safety and health (OSH) legislation of low- and middle-income countries were determined. Second, required revisions were identified and discussed to strengthen the laws in accordance with the best international practice. Finally, proposals for additional OSH laws and interventions were suggested. A literature search of OSH laws of 10 selected low- and middle-income countries was carried out. The laws were subjected to uniform review criteria. Although the agricultural sector employs more than 70% of the population, most of the reviewed countries lack OSH legislation on the sector. Existing OSH laws are gender insensitive, fragmented among various government departments, insufficient, outdated, and nondeterrent to perpetrators and lack incentives for compliance. Conclusively, the legal frameworks require reformation and harmonization for the collective benefit to employees, employers, and regulatory authorities. New OSH legislation for the agricultural sector is required.

• International Journal of Advanced Culture Technology
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• v.12 no.2
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• pp.51-61
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• 2024

This study analyzes and compares the roles and significance of large firms in economic growth by differentiating developmental stages. The focus is on both the role of big businesses on the road from middle- to high-income countries and the performance in their economies. By classifying the top 30 nonfinancial firms into their origin countries, we have constructed a country-level data basis covering 33 countries ranging from middle- to high-income economies for the 2001 to 2017 period. We conduct fixed effect estimation. Empirical results show that capital-intensive big businesses would be more predominant in developed economies. In terms of policy implications, the results suggest that if policymakers want to optimize the role of big businesses in economic growth, policymakers need to distinguish the income level. Policymakers also need to adjust the size distribution of firms moderately ahead of time to create the size distribution of firms needed to take the economy to the next level.

• Korea Trade Review
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• v.43 no.2
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• pp.23-45
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• 2018

Logistic costs refer to trade costs, but it could influence FDI as well as global trade. Multinational corporations choose the geographic organization to produce their products. Therefore, it involves many countries to produce one product. International trade between countries more frequently involves the trade of raw materials, components, and unfinished goods. This implies that countries with better logistic performance are attractive for investment because of low transaction costs. Using the logistic performance index provided from the World Bank, this paper investigates the impacts of logistic performance on FDI inflow to developing countries. Results show that infrastructure and timeliness have a positive effects on FDI inflow to low income countries. In the case of middle income countries, timeliness has a negative effect on FDI inflow. This discrepancy between the low- and middle- income countries comes from the different motivation. FDI for low income countries primarily attempts to minimize labor costs. However, FDI for middle-income countries seems to be motivated to reduce labor costs and expand sales markets. FDI inflow in low-income countries serves as part of the offshoring or global outsourcing of multinational corporation.

• International Commerce and Information Review
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• v.17 no.2
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• pp.69-93
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• 2015

Developing countries including poor countries cannot accumulate enough domestic saving and government budget for their industrialization. They need to finance the capital for development from abroad sources; foreign direct investment (FDI) and official development assistance (ODA). The developing countries can improve their business climate for more ODA. This paper examines whether ODA improve the business climate of developing countries. In this paper, the business climate are measured by the starting business scores and the scores of credit and protecting investor in Doing Business project of World Bank. According to the empirical result, ODA has significant effect on the starting business scores for low and lower middle income countries, but insignificant effect for upper middle countries. In the case of the scores of credit and protecting investor, ODA has significant effect only for lower middle income countries.

• The Journal of Asian Finance, Economics and Business
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• v.8 no.12
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• pp.85-94
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• 2021

Infrastructure capacities are essential elements and one of the sustainable lines to drive economic growth. Infrastructure development, both physical and social, is vital to sector-wise economic development. However, there is limited evidence of how infrastructure development in certain sectors benefits the economy as a whole. This study explains the relationships between infrastructure and economic growth in selected middle-income Asian countries, highlighting the essential criteria to benefit from both physical and social infrastructure, as well as sectoral (agriculture, industry, and services) economic output. The research uses the data from 1990 to 2020 for empirical estimations. The study used Levin, Lin, & Chu test, ADF- Fischer chi- Square, and PP- Fischer Chi-Square to test unit root and to observe the stationary nature of the panel. Padroni and Kao cointegration is applied to check the cointegration among different panes. A Fully Modified OLS was employed for checking the association between physical and social infrastructure and economic growth. Results show that physical and social infrastructure negatively impact sectoral output in Asia's middle-income countries. Apart from infrastructure the per capita GDP growth, tax to GDP ratio, and population growth shows a simultaneous relation between infrastructure and sectoral economic growth.

• Journal of Korea Trade
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• v.24 no.4
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• pp.18-33
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• 2020

Purpose - This paper investigated the effect of international trade affects income inequality. It also compares the different effects between developing and developed countries over the period from 2005 to 2014 for 58 countries. Design/methodology - The econometric estimation was used to identify the relationship between export, import, FDI, GDP, unemployment and income inequality. In this empirical analysis, we utilized a Vector Error Correction (VEC) model using panel data. Findings - The findings show that there is a close correlated between trade and income inequality. The higher export ratio of GDP tends to have a 1.79 times more income inequality in developing countries than in developed countries. The higher import ratio of GDP tends to have a 2.44 times higher income inequality in developing countries than in developed countries. Further, Increasing FDI tend to have an approximately 1.43 times higher income inequality in developing countries than in developed countries. Korea is in the middle of developed and developing countries' result. Originality/value - To correct the global income inequality regarding trade, developed countries' proactive trade policies, such as granting preferential tariff benefits to developing countries, are likely to be needed and Income Safety Net in international trade must be taken into account.

• Korea Trade Review
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• v.42 no.6
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• pp.51-67
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• 2017

This study analyzes the relationship between globalization and income inequality. The empirical model is developed based on Kuznets' hypothesis of the inverse U curve. The effects of factor abundancy and globalization which is characterized by trade and FDI on income inequality are analyzed. 127 member countries of WTO are classified into 4 groups according to GNI. The period of analysis is 21 years from 1995 to 2015. Results show that 3 groups of countries excluding one group that is high income countries supports Kuznets' hypothesis which is the inverse U curve. Secondly, expansion of trade decreases income inequality of middle income countries but increases high and low income countries. Thirdly, FDI increases income inequality of middle and low income countries. Finally, the increase in capital abundancy lowers income inequality because the capital accumulation increases the productivity of labor.