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Asia and Pacific > India

You are looking at 1 - 10 of 126 items for :

  • Type: Journal Issue x
  • International Investment; Long-term Capital Movements x
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Cover Departmental Papers
Economic Diversification in Developing Countries: Lessons from Country Experiences with Broad-Based and Industrial Policies
Corinne C Delechat
,
Giovanni Melina
,
Monique Newiak
,
Chris Papageorgiou
,
Ke Wang
, and
Nikola Spatafora
This paper examines the significance and impact of broad-based and industrial policies on economic diversification in developing economies, supported by a literature reviews, case studies, and IMF analyses. Economic diversification entails shifting from traditional sectors, like agriculture and mining, to a variety of high-quality services and sectors. This transition is crucial for adapting to global market fluctuations and promoting sustainable growth and improved living standards. A literature review, including many IMF contributions, reveals a strong correlation between economic diversification and improved macroeconomic performance in developing countries, such as faster economic growth and higher incomes per capita. Factors influencing economic diversification include macroeconomic stability, infrastructure quality, workforce skills, credit access, regulatory environment, and income equality. Six case studies highlight the experiences of Costa Rica, Gabon, Georgia, India, Senegal, and Vietnam, demonstrating that successful diversification strategies require a long-term commitment and effective broad-based policies. Industrial policies can support diversification by addressing market failures, but they must be well-designed and effectively implemented. Common lessons include the necessity of maintaining macroeconomic stability, investing in human capital, and fostering competition. Sector-specific mechanisms like Special Economic Zones should be used cautiously, emphasizing underlying bottlenecks and minimizing fiscal costs. Country-specific insights include Costa Rica's strategic policy shift towards export orientation, Gabon's reduced dependence on oil, Georgia's market-friendly policies, India's skilled labor and software clusters, Senegal's infrastructure and business environment improvements, and Vietnam's transition from an agrarian to an industrial economy. The IMF's engagement in diversification emphasizes improving human capital, infrastructure, reducing trade barriers, and promoting international trade integration. Policymakers, researchers, and international organizations increasingly recognize the importance of economic diversification for resilient, sustainable, and inclusive growth, requiring nuanced policy interventions tailored to each country's context and capabilities.
Keywords:
Economic Diversification; Developing Economies; Industrial Policy; Macroeconomic Stability; IMF Analysis; IMF team; diversification strategy; countries' diversification experience; government policy; diversification result; Exports; Foreign direct investment; Service exports; Global; Sub-Saharan Africa; Asia and Pacific
Cover IMF Staff Country Reports
United Arab Emirates: Selected Issues
International Monetary Fund. Middle East and Central Asia Dept.
The Selected Issues paper discusses United Arab Emirates’ (UAE) focus on reforms for productive and greener growth. This paper aims to quantify the potential long-term growth and productivity gains from ongoing structural reform efforts. Facilitating green and sustainable private finance would reduce the direct fiscal burdens of investment needs and help promote a smooth transition to a lower carbon future. The UAE has recently signed or started negotiations for Comprehensive Economic Partnership Agreements with eleven countries. Depending on the UAE’s ability to further attract foreign direct investment, the reduction of tariffs, especially on intermediate inputs, can significantly lift long-term growth through stronger competition, access to a higher number of varieties and quality of inputs, and transfer of technology. Developing and scaling up private green and sustainable finance, as well as creating an enabling environment for smooth energy transition, would reduce direct fiscal costs, increase efficiency of green investments, and preserve public financial wealth while delivering on growth and Net Zero ambitions.
Keywords:
UAE government; ICT investment outcome; FDI restrictiveness index; quantifying gains from trade liberalization; productivity gain; Climate finance; Digital economy; Foreign direct investment; Sustainable growth; Global
Cover IMF Working Papers
Inequality and the Structure of Countries’ External Liabilities
Philipp Harms
,
Mathias Hoffmann
,
Miriam Kohl
, and
Tobias Krahnke
In this paper, we present empirical evidence that higher income inequality is associated with a greater equity share in countries' external liabilities, and we develop a theoretical model that can explain this observation: In a small open economy with traded and nontraded goods, entry barriers depress entrepreneurial activity in nontraded industries and raise income inequality. The small number of domestic nontraded-goods firms leaves room for foreign firms to operate on the domestic market, and it reduces external borrowing. The model suggests that barriers to entrepreneurial activity could be conducive to attract equity-type capital inows. Our empirical results lend some support to this conjecture.
Keywords:
Portfolio Equity; Foreign direct investment; External debt; External liabilities; Income Inequality; entry barrier; equity share; barriers to entrepreneurial activity; traded-goods firm; Income; Portfolio investment; Self-employment; South Asia; East Asia; Foreign corporations
Cover IMF Working Papers
Measuring Carbon Emissions of Foreign Direct Investment in Host Economies
Maria Borga
,
Achille Pegoue
,
Mr. Gregory M Legoff
,
Alberto Sanchez Rodelgo
,
Dmitrii Entaltsev
, and
Kenneth Egesa
This paper presents estimates of the carbon emissions of FDI from capital formation funded by FDI and the production of foreign-controlled firms. The carbon intensity of capital formation financed by FDI has trended down, driven by reductions in the carbon intensity of electricity generation. Carbon emissions from the operations of foreign-controlled firms are greater than those from their capital formation. High emission intensities were accompanied by high export intensities in mining, transport, and manufacturing. Home country policies to incentivize firms to meet strict emissions standards in both their domestic and foreign operations could be important to reducing emissions globally.
Keywords:
Carbon emissions; foreign direct investment; input-output tables; A. carbon emissions; carbon intensity; emission intensity; FDI flow; carbon emission intensities of MNEs; Greenhouse gas emissions; Gross fixed investment; Exports; Manufacturing; Africa; Global
Cover Policy Papers
2019 Quota Data Update
International Monetary Fund. Finance Dept.
and
International Monetary Fund. Statistics Dept.
The paper presents summary results for the updated data set, with country-by-country details provided in Appendix I. In terms of broad country groups, the results of the data update are broadly consistent with trends observed in previous updates. The aggregate share of Emerging Market and Developing Countries (EMDCs) increased by 0.3 pp, to 50.0 percent, following a small decline in the EMDCs’ share recorded in the 2018 data update. The rising EMDC share reflected again foremost an increase for Asia. Most advanced economies recorded a small decrease in their calculated quota share using the current quota formula.
Keywords:
PP; openness variable; annexes advance; cutoff date; EMDC share; PPP GDP share; Purchasing power parity; Financial account; Labor unions; Monetary unions; Africa; Asia and Pacific; Global; Middle East; Western Hemisphere
Cover IMF Working Papers
Capital Flow Data – A Guide for Empirical Analysis and Real-time Tracking
Mr. Robin Koepke
and
Simon Paetzold
This paper provides an analytical overview of the most widely used capital flow datasets. The paper is written as a guide for academics who embark on empirical research projects and for policymakers who need timely information on capital flow developments to inform their decisions. We address common misconceptions about capital flow data and discuss differences between high-frequency proxies for portfolio flows. In a nowcasting “horse race” we show that high-frequency proxies have significant predictive content for portfolio flows from the balance of payments (BoP). We also construct a new dataset for academic use, consisting of monthly portfolio flows broadly consistent with BoP data.
Keywords:
WP; flow data; portfolio flow; debt flow; flow proxy; IMF balance of payments statistic; portfolio flows; fund flows; balance of payments; coincident indicators; IIF data; IMF balance of payments data; Capital flows; Stocks; Balance of payments statistics; Flow of funds; Emerging and frontier financial markets; Africa; Global
Cover Regional Economic Outlook, October 2019, Asia Pacific
Regional Economic Outlook, October 2019, Asia Pacific
International Monetary Fund. Asia and Pacific Dept

Abstract

Growth in Asia is expected to moderate to 5.0 percent in 2019 and 5.1 percent in 2020 (0.4 and 0.3 percentage point lower than projected last April, respectively). A marked deceleration in merchandise trade and investment, driven by distortionary trade measures and an uncertain policy environment, is weighing on activity, particularly in the manufacturing sector.

Keywords:
REO; exchange rate; economy; monetary policy; financial condition; market; foreign exchange; capital flow; service sector; IMF staff calculation; fiscal policy; foreign direct investment; financial crisis; labor market; exchange rate volatility; distortionary trade measure; reaction function; Capital flows; Emerging and frontier financial markets; Exchange rates; Capital flow management; Global; South Asia; Asia and Pacific; Southeast Asia
Cover Finance & Development
Finance & Development, June 2019: The IMF at 75
International Monetary Fund. Communications Department
This issue of Finance & Development presents success and works of IMF in the past 75 years since its formation. The IMF’s financial firepower must be increased substantially, particularly in a world of relatively free capital flows. If the world of cooperative globalization is to survive and the IMF is to maintain its role within it, a great deal must change. Some of these changes are within the IMF’s control. The most important challenges for the IMF of tomorrow are, however, those created by the changing world. Global cooperation is needed to reap the benefits and avoid the pitfalls of cross-border capital flows. Cross-border capital flows are neither an unmitigated blessing nor an undoubted curse. Used judiciously, they can be beneficial to recipient countries, making up deficiencies in the availability of long-term risk capital and reducing gaps in local corporate governance. Many emerging market economies have understood that they should build foreign exchange reserves. The IMF model suggests that fluctuations in the exchange rate are the main reason for fluctuations in corporate liquidity in receiving countries.
Keywords:
FD; F&D; China; country; economy; swap line; IMF of today; central bank swap lines; Bretton Woods conference; IMF quota; IMF Headquarters; Carbon tax; Emerging and frontier financial markets; Global value chains; Currencies; International monetary system; Global; Africa; Central Asia; Europe; Eastern Europe
Cover IMF Working Papers
Mobilization Effects of Multilateral Development Banks
Chiara Broccolini
,
Giulia Lotti
,
Alessandro Maffioli
,
Mr. Andrea F Presbitero
, and
Rodolfo Stucchi
We use loan-level data on syndicated lending to a large sample of developing countries between 1993 and 2017 to estimate the mobilization effects of multilateral development banks (MDBs), controlling for a large set of fixed effects. We find evidence of positive and significant direct and indirect mobilization effects of multilateral lending on the number of deals and on the total size of bank inflows. The number of lending banks and the average maturity of syndicated loans also increase after MDB lending. These effects are present not only on impact, but they last up to three years and are not offset by a decline in bond financing. There is no evidence of anticipation effects and the results are not driven by confounding factors, such as the presence of large global banks, Chinese lending and aid flows. Finally, the economic effects are sizable, suggesting that MBDs can play a vital role to mobilize private sector financing to achieve the goals of the 2030 Development Agenda.
Keywords:
WP; mobilization effect; MDB lending; MDB participation; loan maturity; MDB dummy variable; MDB support; Multilateral Development Banks; Private Capital Flows; Mobilization Effects; Catalytic Finance; Syndicated loans; lending bank; Revenue mobilization; Loans; Multilateral development institutions; Bank credit; Global
Cover IMF Staff Country Reports
Bhutan: Technical Assistance Report-Report on the External Sector Statistics Technical Assistance Mission (April 2–13, 2018)
International Monetary Fund. Statistics Dept.
As part of the IMF-South Asia Regional Training and Technical Assistance Center (SARTTAC) work program, a technical assistance (TA) mission on external sector statistics (ESS) was conducted during April 2–13, 2018. The mission assisted the Royal Monetary Authority (RMA) in compiling and disseminating external debt statistics (EDS) consistent with the international investment position (IIP), reviewed the compilation method of direct investment statistics, and assessed the coverage of external flows related to hydropower projects.
Keywords:
ISCR; CR; FDI company; FDI data; compilation file; FDI worksheet; loans liabilities transaction; resident in Bhutan; accrued interest; Foreign direct investment; External sector statistics; International investment position; Loans; Asia and Pacific