The Journal of Developing Areas最新文献

{"title":"Effects of Crude Oil Price Shocks on Food Crops Production in Oil-Exporting Countries: The Case Study of Nigeria","authors":"A. Obayelu, O. O. Ogunmola, Oluwatosin A. Adeyemi","doi":"10.1353/jda.2022.0076","DOIUrl":"https://doi.org/10.1353/jda.2022.0076","url":null,"abstract":"ABSTRACT:Crude oil is a basic input to production and commerce. An increase in oil price leads to a rise in the production and distribution of firms' products. High energy prices increase the costs of producing agricultural products with rising prices, thereby, frequently compelling government to modify domestic prices of energy. Thus, this study examines the effects of crude oil price shocks on food crop production in oil-exporting countries like Nigeria. The study uses time series data such as average annual crude oil price, annual food production output, agricultural gross domestic product from 1961 to 2019 obtained from different sources respectively. The effects of crude oil price shocks on some selected food production outputs in Nigeria have been analyzed using a Non-linear Autoregressive Distributed Lags (NARDL) model. The model has been used to analyze the long-run and short-run asymmetric relations between food production output and oil price shocks, because of its robust empirical results. The model also allows us to simultaneously measure the asymmetric nonlinearity and cointegration among the underlying variables in a single equation framework. The bounds test of the NARDL specification suggests the presence of cointegration among the variables, which include the oil price, food production outputs (for maize, rice, sorghum, wheat, cassava and yam) and real agricultural Gross Domestic Product. Results affirm the presence of irregularities in the food production output behaviour. Results also indicate that there are long-term relationships between increase in prices of crude oil and food crop production. In the long-run, there is an inverse relationship between food production outputs and prices of oil, while in the short-run, a direct relationship. With the presence of significant influence of oil price shocks on the food production output, both in the long-run and in the short-run, there is a need for long-term agricultural policies to protect economies from any global food shortage that may result from oil price changes. The effects of oil price fluctuation can be reduced using a price ceiling strategy and through a provision of standard refineries by the public or private sectors.","PeriodicalId":286315,"journal":{"name":"The Journal of Developing Areas","volume":"18 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2022-08-18","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"120955979","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Livelihood Diversification and Farmers' Well-Being: Lessons From South-West, Nigeria","authors":"S. Olawuyi, Tosin Dolapo Olawuyi","doi":"10.1353/jda.2022.0074","DOIUrl":"https://doi.org/10.1353/jda.2022.0074","url":null,"abstract":"ABSTRACT:Livelihood diversification is an adaptation and a coping mechanism used by individuals to mitigate tragic episodes, and to build buffer against social, environmental, health and economic shocks, as well as other extreme events which impact disproportionately on people's lives, in a bid to ensuring sustained livelihood and improved living conditions. The effect of livelihood diversification on farmers' well-being in South-West Nigeria was therefore investigated using the dataset elicited from 359 farmers randomly drawn from the study area. The data were analyzed with composite score technique, simpson index of diversity, fractional probit, and fractional heteroskedastic probit models. The results revealed that livelihood diversification pattern among the farmers was at a moderate level, while farmers' categories of well-being status were partly associated with the levels of livelihood diversification in other sectors considered remunerative with high returns. Findings also indicated that age of the farmer, primary occupation, farm size, neighborhood effect, incidence of shocks and farmer's food insecurity status had significant relationships with the rate of livelihood diversification in the study area. Meanwhile, age of the farmer, years of formal education, livelihood diversification, access to credit, neighborhood effect, primary occupation of the respondents, and farming experience significantly influenced farmers' well-being status. In essence, this study has provided converging lines of evidences and demonstrated that livelihood diversification and other farmers' and farm based characteristics were meaningful predictors of the differences in the categories of farmers' well-being status in the study area. Arising from the findings, the study recommended human capital development through free and/or affordable educational system in the rural areas, as well as diversification of income sources among the farmers, while informal social protection can also be scaled up through social networks and neighborhood effect hinged on collective norms of solidarity, reciprocity, altruism and obligations towards achieving an effective cultural and social driven development.","PeriodicalId":286315,"journal":{"name":"The Journal of Developing Areas","volume":"14 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2022-08-18","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"131454186","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Agricultural Productivity, Human Development, and Manufacturing Employment: Africa","authors":"R. Grabowski, S. Self","doi":"10.1353/jda.2022.0061","DOIUrl":"https://doi.org/10.1353/jda.2022.0061","url":null,"abstract":"ABSTRACT:The impact of agricultural productivity growth on the process of structural change, an increase in the share of labor employed in manufacturing, is a much debated topic. One perspective argues that agricultural productivity promotes structural change via its contribution of various resources to the manufacturing sector. Another hypothesis proposed is that agricultural productivity growth will draw resources away from agriculture. This paper hypothesizes that agricultural productivity growth plays a key role in the structural change process, but not necessarily through the mechanisms usually proposed. It is hypothesized here that agricultural productivity growth improves the quality of human labor (measured by the human development index, human capital accumulation, and reductions in infant mortality). In turn, improvements in the quality of human labor make it more profitable to employ labor in manufacturing and thus structural change, measured by the share of manufacturing employment in total employment, increases. These hypotheses are tested using dynamic ordinary least squares (DOLS) techniques utilizing data from seventeen countries in Sub-Saharan Africa. The findings indicate that agricultural productivity growth has a significant positive impact human labor quality as measured by the human development index, human capital accumulation, and reductions in infant mortality. In addition, improvements in the quality of human labor in turn have a significant positive impact on the extent of structural change as measured by the share of manufacturing employment as a share of total employment. In addition, trade, as measured by exports plus imports divided by GDP, also has a significant positive impact on the extent of structural change. Finally, inflation appears to slow the structural change process. The policy implications are straightforward. Agricultural productivity does indeed seem to be important in the process of structural change. Thus development programs involving Sub-Saharan Africa should focus on investment in the development of agricultural technologies that will raise agricultural productivity. In a broader sense, governments should focus investment on improving the overall quality of labor.","PeriodicalId":286315,"journal":{"name":"The Journal of Developing Areas","volume":"506 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2022-08-18","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"131537587","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Effect of Sustainable Agricultural Practices On Production Efficiency of Maize Farmers In Oyo And Ogun States Of Nigeria","authors":"S. Oyewole, C. Afolami, A. Obayelu, C. O. Adeofun","doi":"10.1353/jda.2022.0068","DOIUrl":"https://doi.org/10.1353/jda.2022.0068","url":null,"abstract":"ABSTRACT:One of the important factors of improving productivity in agricultural production is efficient utilization of inputs and having knowledge of production input elasticity and any socioeconomic characteristics of farmers that may be associated with production efficiency. This study assessed the status of Sustainable Agricultural Practices (SAPs) adoption and the link to efficiency in production of maize among farmers in Ogun and Oyo States, Nigeria. A multi-stage sampling procedure was used to select 370 maize farmers across Local Governments Areas and communities in the two States. Primary data were obtained from the farmers through questionnaire administration on their socio-economic characteristics, sustainable practices adopted, maize production resource use, and costs during farm season by the farmers. Analysis of data were carried out using descriptive statistics Stochastic Frontier Production and Stochastic Cost Function. The study showed that adoption of SAPs among farmers was generally low except for the use of improved seed that was adopted by more than 50% of the farmers. The parameter estimates of the production function showed that farm size (β = 0.4318, p<0.05), seed (β = 0.1077, p<0.05), fertilizer (β = 2197, p<0.05), labor (β = 0.1527, p<0.05), herbicide (β = 0.1329, p<0.05) and insecticide (β = 0.0921, p<0.05) have positive significant influence on the farm output. Socioeconomic factors influencing technical inefficiency were education, household size, farming experience, extension contact and access to credit while SAP factors influencing technical inefficiency were agroforestry and improved variety. Rent on land (β = 0.1788, p<0.01), price of seed (β = 0.0629, p<0.10), price of labor (β = 0.0984, p<0.01) and price of herbicide (β = 0.4117, p<0.01) were the significant variables in cost model. Socioeconomic factors influencing cost efficiency were age, farming experience, extension contact, and access to credit. SAPs factors affecting cost efficiency were use of organic manure, cover cropping, agroforestry, crop rotation and mixed cropping. The estimated average technical, allocative and economic efficiency were 0.59. 0.56 and 0.31 respectively. Adoption of different SAPs options was found as determinant factor of production. Farmers are encouraged to embrace SAPs to increase their productivity with present available resources.","PeriodicalId":286315,"journal":{"name":"The Journal of Developing Areas","volume":"59 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2022-08-18","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"116890199","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Export Quality and Growth in Sub-Saharan Africa: The Role of Public Institutions","authors":"B. Kiiza, G. Omiat, G. Pederson","doi":"10.1353/jda.2022.0067","DOIUrl":"https://doi.org/10.1353/jda.2022.0067","url":null,"abstract":"ABSTRACT:We examine the impact of improved quality of exports on per capita income convergence between the United States (U.S.) and Sub-Saharan Africa (SSA) countries. We repeat that analysis for East Asian Tiger economies and SSA. We use a two-step system GMM estimator for dynamic panel models to test two hypotheses. First, that improved quality of exports increases per capita income convergence between the U.S. and the SSA region. Second, that the magnitude of the convergence is augmented by observed improvements in the quality of institutions and policy frameworks in the SSA region. Our findings show that improvements in the quality of food and livestock exports from SSA countries does indeed increase the rate of convergence in per capita GDP between the U.S. and SSA. Also, the convergence effect between the U.S. and SSA is observed with increased quality of manufactured exports from SSA, and it is about twice the effect obtained from increases in the quality of food and livestock exports. Similar results are obtained for convergence between the East Asian Tiger countries and the SSA region. In addition, the rate of convergence between the U.S. and SSA is highly augmented by increases in; anti-corruption efforts, ease of doing business, economic freedom, public investment in health, and progress in the quality of country policies and institutions. These results show that both food and livestock products, and manufactured goods, that are produced for export remain highly relevant for economic growth in the SSA region. International data shows that, when compared with the rest of the world, the SSA region scores low on these social and economic indicators. This underscores the importance of improving the quality of SSA public institutions to achieve sustainable, export-led economic growth.","PeriodicalId":286315,"journal":{"name":"The Journal of Developing Areas","volume":"24 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2022-08-18","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"114818932","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Emissions and Output: Evidence of Decoupling from Brazil","authors":"J. Jalles","doi":"10.1353/jda.2022.0063","DOIUrl":"https://doi.org/10.1353/jda.2022.0063","url":null,"abstract":"ABSTRACT:This paper provides evidence on the relationship between greenhouse gas (GHG) emissions and real GDP growth in Brazil, using both aggregate and state-level data. The focus is on distinguishing longer-run trends in this relationship from short-run cyclical fluctuations, and on documenting changes in these relationships over time. We use two different filtering techniques for separating trend and cycle, namely the commonly-used Hodrick-Prescott filter and the newer filter proposed by Hamilton (2018). We find that the long-run or trend elasticity for Brazil is about 0.8, higher than than in the average for advanced countries but below that of other major emerging markets. This elasticity is somewhat higher for consumption-based emissions than for production-based emissions. The direction of these results is not entirely consistent with the pollution haven hypothesis but the quantitative difference between the two elasticities is not large (or statistically different from one another). Consequently, our findings suggest that shifts in the allocation of global production across countries are not a major driver of shifts in the pattern of emissions growth in Brazil. Additional evidence comes from state-level data analysis where one can observe a great deal of heterogeneity, but also some hope as far as decoupling is concerned. Our analysis for 27 states does not reveal any underlying inverted U-shape relationship between the intensity of emissions-GDP relationship and the level of per capita GDP. That is, at the state level, we do not observe that Kuznets elasticity initially increases with provincial per capita real GDP but then declines. In addition to the trend relationship between emissions and output, we find that there does not seem to exist a short-run or cyclical relationship holding in Brazil at the aggregate level (despite having become more procyclical over time), but it does exist in a few individual states. Finally, we further find evidence of asymmetry in the cyclical relationship: the elasticity is higher in booms than during busts, and thus Brazil's emissions go up more when GDP is above trend than they decrease when GDP is below trend. However, this result seems to be mainly driven by a few states.The transition to a low-carbon economy will thus require continued progress not only in bringing down trend emissions, but also in taming the increase in emissions that occurs during the boom phase of the business cycle.","PeriodicalId":286315,"journal":{"name":"The Journal of Developing Areas","volume":"6 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2022-08-18","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"121419524","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Testing the Foreign Aid-Led Growth Hypothesis in the Democratic Republic of Congo","authors":"Leward Jeke, Patrick Lusenge Ndungo, C. Moyo","doi":"10.1353/jda.2022.0060","DOIUrl":"https://doi.org/10.1353/jda.2022.0060","url":null,"abstract":"ABSTRACT:The effectiveness of foreign aid in promoting economic growth is one of the most controversial debates yielding different results in literature. Foreign aid has fluctuated to a large extent in Democratic Republic of the Congo (DRC). However, the foreign aid-growth nexus is still inconclusive. The main purpose of this study is to explore the relationship between foreign aid and economic growth in the case of the DRC, more specifically by investigating on both short and long run relationship to test the foreign aid-led growth hypothesis. The study employs the ARDL bounds test proposed by Pesaran, Shin and Smith (2001) which can be used with variables integrated of different orders unlike other cointegration tests. The study uses annual data for the period 1980-2019 sourced from the World Bank's World Development Indicators. GDP growth is used as a proxy for economic growth while the net official development assistance as a measure of foreign aid. Inflation, population growth, exports and oil rents are selected as control variables. The bounds test confirmed the presence of cointegration between the variables while the model passes the diagnostic tests. The study found that foreign aid has a positive and statistically significant impact on economic growth in both the long-run and short-run. The main research findings support the view that foreign aid has been pro-growth in the DRC, but its contribution has been of small magnitude falling in the case of a worse scenario where foreign aid is mismanaged or dilapidated by the government of the recipient country. The control variables reported that inflation has a negative but insignificant effect on economic growth in both the long-run and short-run, oil rents and exports have a positive and significant impact on economic growth. Population growth is negatively and significantly correlated with economic growth. Considering these results, the research recommends that foreign assistance institutions continue to support DRC. A reduction in aid would negatively impact on the growth which is a major determinant of the overall development of the country. However, measures should be put in place to monitor the maximum effective utilization of foreign aid to avoid dilapidation and mismanagement.","PeriodicalId":286315,"journal":{"name":"The Journal of Developing Areas","volume":"31 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2022-08-18","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"126877469","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Population Growth Similarity in North and East Africa","authors":"A. Heshmati, L. Gil‐Alana, M. Rashidghalam","doi":"10.1353/jda.2022.0070","DOIUrl":"https://doi.org/10.1353/jda.2022.0070","url":null,"abstract":"ABSTRACT:World population growth is falling due to declining fertility rates, increase in literacy rate, women labour market participation and the rapid urbanization. Africa is an exception. With the highest rate of population growth, Africa is expected to account for more than half of the world's population growth between 2015 and 2050. We investigate the degree to which population growth and changes in Africa have become more similar over time. The data cover six countries in the North and another six countries in East Africa for the time period 1970-2018. The two sub-samples of countries are heterogeneous but within a group the countries are more similar by culture, religion and values. A population similarity index is computed pairwise both at level changes and growth rates. In addition, fractional integration is used. Population growth is an important issue with regard to the achievement of sustainable development goals. The countries in the two regions are pairwise compared. The population similarity index shows that for most country pairs, changes in population growth and changes between consecutive periods became more similar over time. We find significant differences in the pattern between using growth rates and changes in population. Application of rank-correlation measure shows that correlations between the sample countries indicates a tendency towards reduced population growth, increased similarity and movement towards a sustainable population development. The similarity in population growth between countries is assumed to be a result of tendencies in socioeconomic behaviours and characteristics to become more homogenous and similar leading to demographic convergence. Unlike population, there is no evidence of convergence in fertility and mortality among the countries studied. The results of this study can help policy makers to derive conclusion about the future regional convergence. Regional convergence is important for planning, economic reforms, interstate collaboration, engagement in political, economic and social relations with neighbouring states as well as formation of economic and monetary unions. Investment in education, gender equality, inclusive growth and welfare policies can affect fertility rate and subsequently population growth. Optimal demographic development is important to economic development and very likely ease achievement of the sustainable development goals in Africa.","PeriodicalId":286315,"journal":{"name":"The Journal of Developing Areas","volume":"3 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2022-08-18","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"115545956","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Household Shocks and Consumption Smoothing: Evidence from Northern Bangladesh","authors":"M. M. Bakhtiar, A. Rabbani","doi":"10.2139/ssrn.4044054","DOIUrl":"https://doi.org/10.2139/ssrn.4044054","url":null,"abstract":"ABSTRACT:Poor households in rural Bangladesh often face concurring idiosyncratic and aggregate shocks, which have adverse impacts on their income and consumption. In this study, we investigate the transmission channels, coping responses, and economic consequences of different shocks including idiosyncratic adverse health events and aggregate agricultural productivity shocks. We use a balanced panel data of 5,655 rural households–interviewed every year between 2010 and 2013–in northern Bangladesh. We estimate the effects of adverse health shocks on the consumption levels of poor households in a multi-shock framework. We take advantage of the panel data and use fixed effect models to control for unobserved household-level confounders and potential endogeneity. We further examine effects of shocks to agricultural wages on consumption using rainfall as an instrument. We further carry out a number of robustness checks to understand how sensitive our models are to different alternate specifications. Results indicate that households smooth their consumption after experiencing adverse health shocks, with and without the parallel incidence of other types of shocks. Consumption smoothing occurs despite households experiencing a significant decrease of wage income, which appears to be driven by an increase in informal loans from money lenders and households' social networks. To evaluate the effect of a different type of income shock on consumption, we use rainfall as an exogenous instrument for agricultural income. Results indicate that while higher rainfall leads to a significant increase in agricultural income, it does not translate to higher food expenditure for households. Together, these findings offer suggestive evidence that, in this setting, households appear to smooth food consumption in the face of income shocks. Poor households rely on formal and informal, potentially costly channels and exploit existing social networks to insure themselves against adverse shocks. The findings highlight the importance of developing a better framework to evaluate and implement more equitable social safety net policies.","PeriodicalId":286315,"journal":{"name":"The Journal of Developing Areas","volume":"95 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2022-08-18","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"123007191","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Asymmetric Impact of Corporate Tax on Stock Market Development: Evidence from The Nonlinear Autoregressive Distributed Lag (ARDL) Approach","authors":"Massomeh Hajilee, Yingxu Kuang, Wei-Chih Chiang, L. A. Hayes","doi":"10.1353/jda.2022.0072","DOIUrl":"https://doi.org/10.1353/jda.2022.0072","url":null,"abstract":"ABSTRACT:The stock market and tax policy are widely considered as two core factors for economic growth in any country. A well-developed and functioning stock market provides information on profit-making of successful investment projects, risk diversification, and efficient resource allocation. In addition to domestic resources, the stock market is also considered a crucial part of the global economy. In recent years most OECD countries, including the United States, have substantially reduced their corporate tax rates to stimulate investments, attract foreign capital, and achieve higher economic growth. Corporate tax cuts in a country are expected to positively affect stock market development by encouraging domestic investments and allowing for profit repatriation by multinational companies and foreign firms which will effectively lead to higher stock market development. Despite an extensive literature examining effects of tax policy and the stock market on economic growth, only a few studies have investigated the relationship between corporate tax rate and stock market development, and these studies have shown mixed results. This study investigates the link between corporate tax and stock market development for a group of nine selected OECD countries for the period of 1980-2018 using both long-run and short-run models. In addition to the Pesaran, Shin and Smith (2001) bounds testing approach to cointegration and error correction modeling using the linear ARDL model, we employ the Shin, Yu and Greenwood-Nimmo (2014) nonlinear cointegration approach to investigate the asymmetric impact of corporate tax changes on stock market development. Our findings indicate that, in the linear model in most of countries in this sample, corporate taxing adversely affects stock market development both in the short run and in the long run. In addition, as the first study using the N-ARDL estimation method to investigate this relationship, the robust and strong statistical results show that the effect of corporate tax on stock market development as a major part of financial market development is asymmetric. We show that corporate tax policies in the short run have a nonlinear, asymmetric impact on stock market development. The magnitude of the impact depends on whether the tax policy is a decrease or an increase in corporate tax. Furthermore, this effect changes among the countries in our study. For instance, the stock market's reaction to an increase of corporate taxing in the United States is much more rapid than that of decreases of corporate taxing. Corporate tax increases immediately and strongly affect the stock market, but the stock market takes years to incorporate the effect of tax decreases.","PeriodicalId":286315,"journal":{"name":"The Journal of Developing Areas","volume":"31 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2022-08-18","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"133725913","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}