Search Results (5)

This paper examines the role played by pro-market policies, institutions, natural resources, and infrastructure on the total factor productivity (TFP) of twenty Latin American and Caribbean countries over the period 2000–2018. In estimating the TFP, we use the Färe-Primont index based on DEA. We have verified cointegration and estimated the long-run parameters by the grouped-mean FMOLS estimator. For measuring the impact of institutions, natural resources, and infrastructure, we have used the Productive Capacity Indexes of UNCTAD. We found a positive effect of all these variables on the TFP. Natural resources and energy play the most important role. Followed by information and communication technology and institutions quality. Transport infrastructure has played a minor role. The pro-market policies have been measured by the Fraser Institute indexes. We verified the positive impact of pro-market policies in the area of international trade and financial openness through six different variables. Finally, we considered three areas to measure the impact of domestic regulations and policies; credit, labor and business. We could verify a positive impact of credit and business pro-market policies, but we did not get statistically significant results from the labor regulations index. Full article

There is beyond any doubt that Latin America is one of the most important emerging markets in the world, which has increased its importance in the last decades. In effect, the issues of green, social, and sustainability (GSS) bonds are gaining more and more importance in the Latin American and the Caribbean (LAC) financial markets. They are specifically focused on raising funding for public expenditure programs that contribute to achieving several objectives, such as climate and environmental projects, energy efficiency, pollution prevention, sustainable agriculture, fishery and forestry, etc. The main objective of this paper is to provide a literature revision of the evolution of the issuance of GSS bonds in the LAC region and to analyze the economic growth of the countries which issue this type of bond. We will apply multiple linear regression to relate the economic growth of some countries of the LAC region with the variables proposed by the IFC Emerging Market Green Bonds Report (2019). It has been shown that the economic growth of the countries in the LAC region that are issuing GSS bonds is significantly related to the Sovereign Green Issuance (Total Planned), the ratio of Private Credit/GDP, and the Rule of Law Index. However, this research has had the limitation of the scarcity of available data in the LAC markets. Full article

This study aims to assess the effect of financial inclusion and competitiveness on banks’ financial stability, considering the moderating role of financial regulation. To do so, we compare the effects of these variables in Sub-Saharan African (SSA) and Latin American and Caribbean (LAC) countries. Our results suggest that inclusion enhances bank stability in SSA and LAC countries, and financial regulation contributes to increasing financial stability in LAC countries, while we find no statistical significance in the effect of financial regulation on financial stability in SSA countries. Moreover, competitiveness negatively impacts financial stability, and financial regulation moderates the negative effect of competitiveness on financial stability in SSA and LAC countries. We also find that financial inclusion reduces credit risk in SSA countries, and for LAC countries financial inclusion increases credit risk and reduces bank profitability. Regarding the practical implications, this study shows that fostering financial inclusion in the countries under study contributes significantly to improving the welfare of households and especially to the stability of the financial system. The present study allows expanding of the scarce literature by examining the effect of financial inclusion and market structure on financial stability in two different samples, consisting of 41 countries in the SSA region and 31 countries in the LAC region, throughout 2005–2018. Full article

The objective of the paper is to figure out the nexus between renewable energy consumption and sustainable economic development for emerging and developing countries. In this paper, a panel of 30 emerging and developing countries is selected using the World Development Indicators (WDI) of the World Bank, Renewable Energy Country Attractiveness Index (RECAI) by Ernst and Young, and a random selection method based on the current trend of renewable energy consumption for five different regions of the world i.e., Asia, South-Asia, Latin America, Africa and the Caribbean. To achieve the objective, robust panel econometric models such as the Pesaran cross-section dependence (CD) test, second generation panel unit root test, e.g., cross-sectional augmented IPS test (CIPS) proposed by Pesran (2007), panel co-integration test, fully modified ordinary least square (FMOLS) and dynamic ordinary least square (DOLS) are applied to check the cross-sectional dependence, heterogeneity and long-term relationship among variables. The panel is strongly balanced and the findings suggest a significant long-run relationship between renewable energy consumption and economic growth for selected South Asian, Asian and most of the African countries (Ghana, Tunisia, South Africa, Zimbabwe and Cameroon). But for the Latin American and the Caribbean countries, economic growth depends on non-renewable energy consumption. Renewable energy consumption in the selected countries of these two regions are still at the initial stage. In case of the renewable energy consumption and ${\mathrm{CO}}_2$ emissions nexus, for selected South Asian, Asian, Latin American and African countries both GDP and non-renewable energy consumption cause the increase of ${\mathrm{CO}}_2$ emissions. For the Caribbean countries only non-renewable energy consumption causes the increase of ${\mathrm{CO}}_2$ emissions. An important finding regarding renewable energy consumption-economic growth nexus indicates the existence of bi-directional causality. This supports the existence of a feedback hypothesis for the emerging and developing economies. In the case of renewable energy consumption- ${\mathrm{CO}}_2$ emissions nexus, there exists unidirectional causality. This supports the existence of the conservation hypothesis, where ${\mathrm{CO}}_2$ emissions necessitates the renewable energy consumptions. Based on the findings, the study proposes possible policy options. The countries, who have passed the take-off stage of renewable energy consumption, can take advanced policy initiatives e.g., feed-in tariff, renewable portfolio standard and green certificate for long-term economic development. Other countries can undertake subsidy, low interest loan and market development to facilitate the renewable energy investments. Full article

Municipal Solid Waste (MSW) management is an essential service for an urban population to maintain sanitation. Managing MSW is complex as the treatment/recovery options depend not only on the volume of waste, but also on the socioeconomic conditions of the population. This paper focusses on MSW management in the Latin American and Caribbean (LAC) countries. Dominance of uncontrolled disposal options of MSW in the region, such as open dumps, has an adverse influence on health and sanitation. Interest in source separation practices and recycling is low in the LAC region. Furthermore, economic matters such as poor financial planning and ineffective billing systems also hinder service sustainability. Rapid urbanization is another characteristic feature in the region. The large urban centres that accommodate over 80% of the region’s population pose their own challenges to MSW management. However, the same large volume of MSW generated can become a steady supply of resources, if recovery options are prioritized. Governance is one aspect that binds many activities and stakeholders involved in MSW management. This manuscript describes how we may look at MSW management in LAC from the governance perspective. The issues, as well as the best potential solutions, are both described within three categories of governance: bureaucratic, market, and network. The governance perspective can assist by explaining which stakeholders are involved and who should be responsible for what. Financial issues are the major setbacks observed in the bureaucratic governance institutions that can be reversed with better billing strategies. MSW is still not seen by the private sector as a place to make investments, perhaps due to the negative social attitude associated with waste. The market governance aspects may help increase the efficiency and profitability of the MSW market. Private sector initiatives such as cost-effective microenterprises should be encouraged and the projects that fit under the Clean Development Mechanism (CDM) defined in the Kyoto Protocol should be incentivized to attract technology and capital. Lastly, network governance is at the centre of attention due to its flexibility in supporting/absorbing public-private partnerships, especially the participation of the informal sector that is important to the LAC region. Many individual waste pickers are providing their services to the LAC region by taking part in collecting and recycling under very unfavourable working conditions. Full article