ISSN: 2056-3736 (Online Version) | 2056-3728 (Print Version)

Foreign Aid and Direct Effect of Poverty Reduction in Thailand

Hiroaki Sakurai

Correspondence: Hiroaki Sakurai,

Gakushuin Women’s College

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This study examines the effects of foreign aid on poverty reduction in Thailand dividing into ways. One is the direct effect of poverty reduction and the other is the indirect effect of economic growth. Dividing the effect of foreign aid into the direct effect of poverty reduction and the indirect effect through economic growth will contribute to a more efficient way of providing foreign aid by adjusting its purpose and method of foreign aid. The estimation results are summarized as follows: First, the relationship between the infant mortality rate, as a substitute for poverty reduction, and foreign aid from 1961 to 2022 was not significantly estimated using OLS or VAR (Vector Autoregression) models. Second, the relationship between the poverty ratio and foreign aid from 1988 to 2020 for every other year was also insignificant, although economic growth was estimated to be significantly positive. Based on these results, it can be inferred that foreign aid has no direct effect on poverty reduction in Thailand; rather, the indirect effect seems more important.


  Foreign Aid, Poverty, Thailand.


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Is There J-Curve Effect in the Services Trade in Canada? A Panel Data Analysis

Ivan D. Trofimov

Correspondence: Ivan D. Trofimov,

Victoria University of Wellington, New Zealand

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The effects of real exchange rate changes on the sectoral trade balance have received limited consideration in the empirical literature. We examine services trade and the dynamics of Canada’s bilateral trade balance in services with its 53 major trading partners during 1990-2018. We demonstrate a short-run deterioration and a long-term improvement of the services trade balance following depreciation in an aggregate panel as well as sub-panels, hence supporting the J-curve effect hypothesis and satisfying the Marshall-Lerner condition. At the level of individual cross-sections, the evidence was mixed: a number of economies experienced long-term improvement of the trade balance, albeit without short-term deterioration.


  J-curve, Panel data, Trade balance, Exchange rate, Services.


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Aid and Sectoral Growth in Thailand

Hiroaki Sakurai

Correspondence: Hiroaki Sakurai,

Faculty of Intercultural Studies, Gakushuin Women’s College

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This study examines the relationship between foreign aid and sectoral growth in Thailand from 1960 to 2021 using ordinary least squares. While it is important to see how foreign aid impacts the recipient country, few studies provide analyses in this field. The estimation results show a linear relationship not only between foreign aid and secondary industry growth, but also between foreign aid and tertiary industry growth, whereas a relationship between foreign aid and primary industry growth is not necessarily seen. The results are consistent with previous studies.


  Foreign Aid, Sectoral Growth, Thailand.


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Effects of Expansionary Fiscal Policy in a Commodity-Exporting Economy: Evidence from Mongolia

Javkhlan Ganbayar

Correspondence: Javkhlan Ganbayar,

Graduate School of Humanities and Social Sciences, Saitama University, Saitama, Japan.

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This study contributes to the ongoing debate on the consequences of expansionary fiscal policy by evaluating the macroeconomic effects of various fiscal policy options in a small open economy using a dynamic stochastic general equilibrium (DSGE) model. In addition, the study emphasizes the importance of studying Mongolia, which has unique characteristics and exhibits significant research gaps regarding its fiscal policy. The general architecture of the selected DSGE model includes different types of firms and households, commodity sectors, natural resource funds, and abundant fiscal tools regarding both expenditure and revenue. Employing numerous types of fiscal policy shocks, this study reveals that an exogenous increase in government investment yields the most significant long-term economic benefits, boosting potential output by 0.3%. Among the policy options, government transfers are the least effective in promoting economic output, and existing transfer policies in Mongolia appear to exert only a modest impact on growth, instead primarily contributing to the redistribution of resources. Finally, the estimated output multipliers (except transfers) are greater than one, implying that fiscal policy instruments may be an effective tool for managing the economy in Mongolia.


  Fiscal policy, Fiscal policy multiplier, Small open economy, Dynamic Stochastic General Equilibrium model, Natural Resource Sector.


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The impact of corporate governance mechanisms on earnings quality during the COVID-19 Pandemic. Evidence from the UK

Chris Magnis and Skilodimou Louiza

Correspondence: Chris Magnis,

Department of Economics, University of Thessaly, Volos, Greece

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This study aims to analyze the impact of corporate governance practices on the earnings quality of 228 firms located in the United Kingdom throughout the period from 2019 to 2022. Our fundamental concept states that there is a negative relationship between the efficiency of corporate governance practices within the organization and the probability of participating in earnings manipulation. The findings of our empirical study offer substantiation for our claims, as they demonstrate that companies with boards of directors marked by notable autonomy and financial capabilities, along with the presence of effective audit and compensation committees, experience an improvement in the quality of their earnings.


  Corporate Governance, Earnings Quality, Board of Directors, Audit Committee, Compensation Committee.


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