International Journal of Business Economic Development最新文献

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Addressing rural-urban disparities: A case of government service delivery in Papua New Guinea 解决城乡差距:巴布亚新几内亚政府提供服务的案例
International Journal of Business Economic Development Pub Date : 2018-07-26 DOI: 10.24052/IJBED/V06NU02/ART-01
Vivienne Saverimuttu, Ana Kila Cochran
{"title":"Addressing rural-urban disparities: A case of government service delivery in Papua New Guinea","authors":"Vivienne Saverimuttu, Ana Kila Cochran","doi":"10.24052/IJBED/V06NU02/ART-01","DOIUrl":"https://doi.org/10.24052/IJBED/V06NU02/ART-01","url":null,"abstract":"Papua New Guinea (PNG), a resource rich country, despite many years of positive GDP growth and development efforts, is ranked 157 out of 187 countries on the Human Development Index. Over 80% of the population live in rural areas and have seen very little improvement in living standards since independence in 1975. This paper proposes an alternative, to the usual ‘top down’ approach, to rural development in PNG, one that engages villagers in improving their own wellbeing, with faith-based organisations and nongovernmental organisations as partners in development. The performance of indicators of wellbeing, such as health, access to water and sanitation, education and income generation, between 2000 and 2015, is first reviewed, at national, regional, and village levels, to highlight the rural – urban disparity in access to services. A ‘bottom-up’ approach to raising rural wellbeing, by creating social value, with private sector involvement, in remote villages and engaging in social entrepreneurship is then outlined. Seed funding would be necessary for this approach to be applied successfully. Corresponding author: Vivienne Saverimuttu Email address for corresponding author: v.saverimuttu@westernsydney.edu.au First submission received: 7th February 2018 Revised submission received: 27th March 2018 Accepted: 21st May 2018","PeriodicalId":30779,"journal":{"name":"International Journal of Business Economic Development","volume":" ","pages":""},"PeriodicalIF":0.0,"publicationDate":"2018-07-26","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"47113679","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}
引用次数: 2
Poverty, user charges and health care demand in Nigeria 尼日利亚的贫困、用户收费和保健需求
International Journal of Business Economic Development Pub Date : 2018-07-26 DOI: 10.24052/ijbed/v06nu02/art-04
L. Amaghionyeodiwe
{"title":"Poverty, user charges and health care demand in Nigeria","authors":"L. Amaghionyeodiwe","doi":"10.24052/ijbed/v06nu02/art-04","DOIUrl":"https://doi.org/10.24052/ijbed/v06nu02/art-04","url":null,"abstract":"Healthcare in Nigeria is paid for on a cash and carry basis while out-of-pocket expenses dominate in households’ payment for health care services as a result of user charges that were introduced in the early 1980s. This coupled with the persistent poverty level in Nigeria raises the question of consumers’ ability and willingness to pay these user charges. Accordingly, using primary data, this study examined the possible trade-off between user charges and demand for Public Health Care Services in Nigeria. The analysis showed that increasing user fees substantially reduced the use of government health facility by low-income earners. Thus, it was recommended, among others, that government should introduce price discrimination into user fees, to be set at marginal cost. This would help avoid the adverse distribution effects of user-fees, especially, on the lower income group. Introduction Modern health care services in Nigeria are provided by the Federal, State and Local Government Areas (LGAs) as well as private non-governmental (profit and non-profit) organizations. The three-tiers of government operates through a network of primary, secondary and tertiary level facilities. The primary health care is largely the responsibility of the LGAs with the support of state ministries of health. Secondary health care is available and provided at the State levels while the Federal Government is responsible for providing tertiary care. The referral system is to help ensure that the primary health care services are appropriately supported. The state and federal ministries of health review the resources allocated to, and the facilities available at the secondary and tertiary levels. The major aim of the referral system is to enable all Nigerians have easy access not only to primary health care but also to both secondary and tertiary health care. Healthcare in Nigeria is paid for on a cash and carry basis while out-of-pocket expenses dominate in households‟ payment for health care services. For instance, Ogunbekun et al (1999) indicated that 85 percent of the respondents in their survey sample reported paying for healthcare directly out-of-pocket, this was also supported by estimates from the Federal Ministry of Health (FMoH) (2003) which shows that over 70 percent of healthcare payments in Nigeria are made out-ofpocket. It is worthy to note that prior to this period, (that is, the 1980s) public sector health care services were virtually provided free of charge in Nigeria. With the introduction of user charges, there was an increase in the cost of care being incurred by the consumers and consequently, huge out-of-pocket payments. But given that consumer may have the willingness but not the ability to pay for these services and with huge out-of-pocket payments, there possibly will be a shift or a change in their demand for public health care services. One vital question in this regard is that of consumers‟ ability and willingness to pay these user charges, especia","PeriodicalId":30779,"journal":{"name":"International Journal of Business Economic Development","volume":"1 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2018-07-26","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"42901917","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}
引用次数: 1
Retained earnings and Firms’ Market Value: Nigeria Experience 留存收益与公司市场价值:尼日利亚经验
International Journal of Business Economic Development Pub Date : 2018-07-26 DOI: 10.24052/ijbed/v06nu02/art-02
Akinkoye Ebenezer Yemi, Akinadewo Israel Seriki
{"title":"Retained earnings and Firms’ Market Value: Nigeria Experience","authors":"Akinkoye Ebenezer Yemi, Akinadewo Israel Seriki","doi":"10.24052/ijbed/v06nu02/art-02","DOIUrl":"https://doi.org/10.24052/ijbed/v06nu02/art-02","url":null,"abstract":"The study examined the effects of retained earnings on market value of listed firms after controlling for earnings per share, dividend pay-out and financial leverage in the context of the Nigerian stock market. The sample data was extracted from 75 non-financial firms listed on the Nigeria stock Market during the period 2003 to 2014. The unbalanced panel data (cross-sectional and time series) used to examine the relationship was obtained from the annual financial statements of the various firms. Two basic approaches descriptive and multiple regression models were used to determine the relationship between the underlying variables. The results indicated a positive and significant relationship between retained earnings, earnings per share, dividend pay-out and value of firms while market value is positively but non-significant associated with financial leverage. The study reduces the dearth of previous research on dividend policy in emerging markets regarding the empirical relationship between retained earnings and market value of firms. Corresponding author: Akinkoye Ebenezer Yemi Email address for corresponding author: eykoye@gmail.com First submission received: 15th March 2018 Revised submission received: 20th June 2018 Accepted: 26th June 2018","PeriodicalId":30779,"journal":{"name":"International Journal of Business Economic Development","volume":" ","pages":""},"PeriodicalIF":0.0,"publicationDate":"2018-07-26","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"46602408","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}
引用次数: 18
Corporate bond market as a source of capital funds in emerging economies – the Indian experience 公司债券市场作为新兴经济体资本资金的来源——印度的经验
International Journal of Business Economic Development Pub Date : 2018-07-26 DOI: 10.24052/IJBED/V06NU02/ART-05
N. R. Bhusnurmath, Sunil Ashra
{"title":"Corporate bond market as a source of capital funds in emerging economies – the Indian experience","authors":"N. R. Bhusnurmath, Sunil Ashra","doi":"10.24052/IJBED/V06NU02/ART-05","DOIUrl":"https://doi.org/10.24052/IJBED/V06NU02/ART-05","url":null,"abstract":"Over the years it has become fashionable to argue that a vibrant bond market would be vastly superior to the present bank-led model of debt finance for industries and businesses in emerging economies. While it works well in most developed economies, in countries like India, despite all efforts of the central bank and the financial markets regulators or regulatory authorities, business firms still depend largely on the banking system for their debt capital funds. This study is an attempt to enquire into whether it is the measurable parameters such as cost of funds or the buoyancy in the economy that affects the firms’ decisions or not. If not, it would follow that other qualitative or behavioral (or non-measurable) factors may be responsible for the lack of firms’ appetite for issuing bonds. Corresponding author: N. R. Bhusnurmath Email address for corresponding author: bhusnurmath@mdi.ac.in First submission received: 9th February 2018 Revised submission received: 18th May 2018 Accepted: 12th June 2018 Introduction Over the years it has become fashionable to argue that a vibrant bond market would be vastly superior to the present bank-led model of debt finance in most developing countries such as India. Over the past few decades the Reserve Bank of India (the central bank of India) and the Securities & Exchanges Board of India have been trying desperately to create an active and vibrant corporate bond market. But all their efforts have not brought about much change in the scenario. Firms are still largely dependent on the banking industry for their capital needs. Either banks are their first choice, or they are unable to tap the market as there is very low appetite for corporate bonds from the investing public. It has become a bit of a vicious cycle! The often-quoted refrain is that corporates should raise their debt funds from the capital market rather than from the banks. Very little research seems to have gone in trying to understand the firms’ perspective as to why they prefer banks. This study is an attempt to explore and figure out how the firms in India decide to raise their debt capital; chose between capital markets and banks. 1.1 Literature review Corporate bonds markets have been the subject of numerous studies. But most of them are in the field of capital structure. Cobham, David, and Subramaniam (1998), Turner (2002), Guha, Basudeb, and Bhaduri. (2002) Bhole & Mahakud (2004), Chakraborty (2010). Titman and Wessels (1998) analyze the explanatory power theories of optimal capital structure. Taggart (1977), in his study on corporate financing decisions, concluded that movements in the market values of long term debt and equity are important determinants of the corporate security issues. Myers (1977) found that corporate borrowing is inversely International Journal of Business and Economic Development, Vol. 6 Number 2 July 2018 www.ijbed.org A Journal of the Academy of Business and Retail Management (ABRM) 52 related to the proportion of ","PeriodicalId":30779,"journal":{"name":"International Journal of Business Economic Development","volume":" ","pages":""},"PeriodicalIF":0.0,"publicationDate":"2018-07-26","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"45974124","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}
引用次数: 0
Human development and multidimensional poverty alleviation empirical study on Egypt 埃及人的发展与多维扶贫实证研究
International Journal of Business Economic Development Pub Date : 2018-04-01 DOI: 10.24052/IJBED/V06IS01/C-05
Abeer Mohamed Ali Abd Elkhalek, Egypt Maritime Transport Alexandria
{"title":"Human development and multidimensional poverty alleviation empirical study on Egypt","authors":"Abeer Mohamed Ali Abd Elkhalek, Egypt Maritime Transport Alexandria","doi":"10.24052/IJBED/V06IS01/C-05","DOIUrl":"https://doi.org/10.24052/IJBED/V06IS01/C-05","url":null,"abstract":"The purpose of this study is to assess multidimensional poverty in Egypt during the last decade at both of national level and sub-national level and examine the role of human development strategies in alleviating poverty prevalence across different regions in Egypt. This paper uses national and subnational data to investigate how human development strategies can reduce multidimensional poverty rates. The data analysis indicates high variations in income poverty and human poverty between rural and urban regions as governorates in the rural areas-especially in Lower Egypt-have higher multidimensional poverty rates than upper urban governorates. The empirical analysis revealed that human development strategies must be used as a weapon against poverty. It has proven that adequate education and health policies enhancement lead to the reduction and alleviation of poverty and to eliminate the regional disparities of multidimensional poverty in Egypt.","PeriodicalId":30779,"journal":{"name":"International Journal of Business Economic Development","volume":" ","pages":""},"PeriodicalIF":0.0,"publicationDate":"2018-04-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"45619133","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}
引用次数: 1
Analysis of internal barriers toward the growth of start up business in Indonesia 印尼创业成长的内部障碍分析
International Journal of Business Economic Development Pub Date : 2018-04-01 DOI: 10.24052/IJBED/V06IS01/C-04
I. G. P. D. Awatara, A. Hamdani, S. Fatonah, Linda Nur Susila, A. Gunardi
{"title":"Analysis of internal barriers toward the growth of start up business in Indonesia","authors":"I. G. P. D. Awatara, A. Hamdani, S. Fatonah, Linda Nur Susila, A. Gunardi","doi":"10.24052/IJBED/V06IS01/C-04","DOIUrl":"https://doi.org/10.24052/IJBED/V06IS01/C-04","url":null,"abstract":"This study aims to analyzed internal barriers such as motivation, management capacity, funding and marketing influenced toward the growth of start up Business in Indonesia. This research in SME’s Indonesia using samples from 100 respondent with sample technique is purposive sampling. Data collection method used a questionnaire, documentation and interview. The method of analysis used is multiple linier regression. The result showed that the motivation, management capacity, funding and marketing influence on the growth of start up business in Indonesia. Corresponding author: I Gusti Putu Diva Awatara Email address for corresponding author: gruppe_cemara@yahoo.co.id First submission received: 29th September 2017 Revised submission received: 13th November 2017 Accepted: 15th March 2018 A. Introduction Given the current economic challenges facing many countries across the globe, the notion of engendering greater entrepreneurial activity has become a prominent goal for many national governments. The relevance of entrepreneurship to economic development has been highlighted by many researchers (e.g. Davidsson et al, 2006) and it is now well-recognised that education and training opportunities play a key role in cultivating future entrepreneurs and in developing the abilities of existing entrepreneurs to grow their business to greater levels of success (Henry et al, 2003). According to the European Commission (2008), the aim of entrepreneurship education and training should be to ‘develop entrepreneurial capacities and mindsets’ that benefit economies by fostering creativity, innovation and self-employment. More globally, governments across the world are increasingly recognising the positive impact that the creation of new businesses can have on employment levels, as well as the competitive advantages that small firms can bring to the marketplace (Scase, 2000). Moreover, while entrepreneurship provides benefits in terms of social and economic growth, it also offers benefits in terms of individual fulfilment, with entrepreneurship now breaking through the barriers of class, International Journal of Business and Economic Development, Vol. 6 Number 1 March 2018 www.ijbed.org A Journal of the Academy of Business and Retail Management (ABRM) 49 age, gender, sexual orientation, and race. However, because the relationship between entrepreneurship and economic growth is quite complex, many different approaches to encouraging entrepreneurship have been applied by a wide variety of agencies, with enterprise policies varying from country to country. Hoy et al (1992) recorded that a wide variety of growth measures were used ranging from increased market share or enhanced venture capital funding, to growth in revenue, return on investment, or the number of customers of a firm. Within these studies, employment was generally the most accepted method of measuring growth. This occurs because the data is easily gathered, determined and categorised, and because this syste","PeriodicalId":30779,"journal":{"name":"International Journal of Business Economic Development","volume":" ","pages":""},"PeriodicalIF":0.0,"publicationDate":"2018-04-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"44567609","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}
引用次数: 1
Risk culture development and its impact: the case of the Caribbean Development Bank 风险文化发展及其影响:以加勒比开发银行为例
International Journal of Business Economic Development Pub Date : 2018-04-01 DOI: 10.24052/IJBED/V06IS01/C-02
A. Wood, A. Lewis
{"title":"Risk culture development and its impact: the case of the Caribbean Development Bank","authors":"A. Wood, A. Lewis","doi":"10.24052/IJBED/V06IS01/C-02","DOIUrl":"https://doi.org/10.24052/IJBED/V06IS01/C-02","url":null,"abstract":"Previous risk culture research has concentrated on the regulated commercial banking and insurance sectors in developed economies. The paucity of studies for developing economies has prompted this research. The objective of this paper is to examine risk culture development and its impact within the Barbados-based Caribbean Development Bank. Given the unregulated nature of development banking, it was anticipated that the risk culture environment within this type of institution would be different to the risk culture environment inherent in regulated entities and will provide a good platform for new findings. Primary data were collected via an interview with the Chief Risk Officer in August 2015 and a three-month field observation at the Bank. The paper utilizes the KPMG risk culture maturity model in conjunction with an adapted version of the Horst Simon risk culture maturity scale to classify the maturity level of risk culture within the Bank. An important finding from the research is that accountability, awareness, communication and leadership have become strong indicators of the Caribbean Development Bank’s risk culture and have contributed to increased uniformity in risk management knowledge, improved coordination of risk data collation and better escalation of risk management issues. Thus, there has been enhanced efficiency of risk management practices within the Bank. Corresponding author: Anthony Wood Email address for corresponding author: anthony.wood@cavehill.uwi.edu First submission received: 12th February 2018 Revised submission received: 20th March 2018 Accepted: 20th March 2018","PeriodicalId":30779,"journal":{"name":"International Journal of Business Economic Development","volume":" ","pages":""},"PeriodicalIF":0.0,"publicationDate":"2018-04-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"48470504","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}
引用次数: 9
How lawyers increase government deficits, trade deficits and current account deficits: theory and cross-national evidence 律师如何增加政府赤字、贸易赤字和经常账户赤字:理论与跨国证据
International Journal of Business Economic Development Pub Date : 2018-04-01 DOI: 10.24052/ijbed/v06is01/c-01
Changkyu Choi, S. Magee
{"title":"How lawyers increase government deficits, trade deficits and current account deficits: theory and cross-national evidence","authors":"Changkyu Choi, S. Magee","doi":"10.24052/ijbed/v06is01/c-01","DOIUrl":"https://doi.org/10.24052/ijbed/v06is01/c-01","url":null,"abstract":"We find that rent seeking as measured by lawyers significantly increases country trade deficits, country current account deficits and government budget deficits. Rent seeking thus increases the international borrowing of countries. A GDP identity linking government deficits with external current account deficits means that increased lawyers in an economy makes it borrow more internationally, thereby lowering the country’s net worth. This paper constructs a dynamic intertemporal model of an open macro economy with lawyer-based redistribution. Countries with high lawyer densities have larger government deficits. Countries with higher percentages of lawyers in their national parliaments have larger government budget deficits. But with only 16 observations, we cannot assert that with statistical significance. Theoretically, our intuition is that increased redistributions of wealth convert the capital stock into income for both the lawyers and their redistributees. Ironically, short-term increases in lawyer rent seeking provide an illusory short run increase in competitiveness because country GDP rises but in the long run, the capital stock, income and the country’s trade balance all decline. Three-stage least-squares estimates across data sets containing 22 and 47 countries confirm the theory. Our cross-national data shows that increased redistributive activity proxied by lawyers has no effect on the private savings gap relative to investment. Thus, the mechanism by which greater redistributive activity reduces a country’s international current account may be directly through greater government budget deficits. ( q* ))  ' ( q* ) +  r( R ) k - k* q - q* Phase diagram tests corresponding to (20) show that dk/dt = 0 locus is effectively horizontal at q = q*: the dq/dt = 0 locus is downward sloping. The tests indicate a unique path converging to the steady state on a downward-sloping path SS. The dynamics of investment are implied by a saddle point path SS. Given an initial capital stock k0, which is below k*, the initial value of q, q0, can be read off of SS and the associated level of investment follows from (16). Since q 0 exceeds q* in this case, capital accumulates over time. Output increases and so","PeriodicalId":30779,"journal":{"name":"International Journal of Business Economic Development","volume":"06 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2018-04-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"43748192","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}
引用次数: 0
Comparative analysis between public and private investment in human capital: A case of Nepal 人力资本公共与私人投资的比较分析:以尼泊尔为例
International Journal of Business Economic Development Pub Date : 2018-04-01 DOI: 10.24052/ijbed/v06is01/c-03
Post Raj Pokharel
{"title":"Comparative analysis between public and private investment in human capital: A case of Nepal","authors":"Post Raj Pokharel","doi":"10.24052/ijbed/v06is01/c-03","DOIUrl":"https://doi.org/10.24052/ijbed/v06is01/c-03","url":null,"abstract":"Human capital investment is seen at employee's learning of job-related behavior, skills, knowledge, and attitude that tends to improve better performance. This paper compares the human capital investment in public and private sectors of Nepal using Human Capital Report, Human Development Report and Employees Opinion working at public and private enterprises. Empirical studies mostly focused human capital as a function of education and experience. This study compares the status of human capital in the context of Nepal more specific to education and health investment. Firstly, the status of educational investment in human capital in Nepal shows significant improvement trend as primary school teachers trained percentage is increasing, pupilteacher ratio has been decreasing and the percentage of population with least some secondary education has also been increasing. Secondly, Government contribution on health expenses is at negligible level i.e. below six percent of GDP. Finally, employees’ overall perception of human capital investment in private sectors has higher influence than the public sectors. This shows that government intervention on human capital investment is not adequate and found less prioritized which might be one of the key reasons for low per capita in the country. Corresponding author: Post Raj Pokharel Email address for corresponding author: postraj@kusom.edu.np First submission received: 15th November 2017 Revised submission received: 15th March 2018 Accepted: 21st March 2018","PeriodicalId":30779,"journal":{"name":"International Journal of Business Economic Development","volume":" ","pages":""},"PeriodicalIF":0.0,"publicationDate":"2018-04-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"44717880","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}
引用次数: 1
The Effect of an Expansion of the Pay-as-You-Go Social Security System in China 现收现付社会保障制度在中国扩张的影响
International Journal of Business Economic Development Pub Date : 1999-10-01 DOI: 10.1142/9789812812605_0005
Shuanglin Lin
{"title":"The Effect of an Expansion of the Pay-as-You-Go Social Security System in China","authors":"Shuanglin Lin","doi":"10.1142/9789812812605_0005","DOIUrl":"https://doi.org/10.1142/9789812812605_0005","url":null,"abstract":"Abstract China is in the process of industrialization with a large amount of the labor force moving from the agricultural sector to industrial sectors. An expansion of the pay-as-you-go social security system benefits current urban retirees, and may solve the social security payment problem faced by many state enterprises. Also, although facing a declining population growth rate, China may not have a social security crisis under a pay-as-you-go social security system just covering the wage earners, as many industrialized countries face. However, the expansion of the pay-as-you-go social security system may have an adverse effect on capital accumulation in the long run, hurting the rural old, and either benefiting or hurting the wage earners in urban areas before the completion of industrialization, and is likely to reduce wage earners' welfare after industrialization. Introduction As economic reforms in other areas proceed in China, social security reform has become urgent. China has a pay-as-you-go social security system which covers only a small portion of the population. The social security reform can go different directions: expanding the existing system to cover more people, or privatizing the present system by establishing individual accounts, or a combination of the two. This paper analyzes the effect of an expansion of the current pay-as-you-go system on the Chinese economy. Many countries in the world provide social security to their residents. Most social security systems are pay-as-you-go in nature, i.e., government collects taxes from the working generation to finance the benefits to the retired generation. This system is also called an \"unfunded system\" because the benefit received and the taxes paid by an individual may not be the same. Under this system population growth will benefit each generation since there will be more young people supporting the retirees. Problems arise when the population growth rate begins to decline, i.e., each generation has to pay more and more to keep the parent generation as happy as their grandparent generation. As capital markets become well-developed, it is also possible for a person to provide old-age security for him- or herself. When working, each individual deposits a portion of his or her salaries into a fund. Over time the fund would accumulate interest, and on retirement, each individual receives the principal and accrued interest as old-age security benefits. This form of old-age security can be called \"individual security,\" and it is a fully-funded system because individuals receive exactly what they paid in terms of the present value. Recent research on Chinese social security reforms have identified two major problems China's new social security system must solve. One is to reduce the social security burden of the state enterprises, and the second is to avoid a social security crisis due to the decrease in the population growth rate (Zhou and Wang, 1994; and the World Bank, 1997). To solv","PeriodicalId":30779,"journal":{"name":"International Journal of Business Economic Development","volume":"07 1","pages":"451"},"PeriodicalIF":0.0,"publicationDate":"1999-10-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"85965251","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}
引用次数: 1
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