Chat with us, powered by LiveChat To prevent the spread of the coronavirus, governments around the world implemented lockdown measures that shut down most of the economic activities and business around the globe, so | EssayAbode

To prevent the spread of the coronavirus, governments around the world implemented lockdown measures that shut down most of the economic activities and business around the globe, so

Please read the word file and check the sample paper for instructions. It has to be in your own words and no plagiarism. Paper requires tables and chart comparison.

School of Business Administration

Econ 6367, Global Economics

Term Paper/Case Study

The Covid 19 Pandemic Impact on Global Economy

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Case Assignment

To prevent the spread of the coronavirus, governments around the world implemented lockdown measures that shut down most of the economic activities and business around the globe, so many lost jobs and unemployment rate increased significantly. So many businesses, manufacturers and companies that consider to be major sources of economic growth were hit badly, global stock market crashed and all countries were isolated.

International Monetary Fund has called this widespread economic restrictions “Great Lockdown”, which led the shut down in economic activities and job loss and higher unemployment rate globally.

In this paper, students are to describe the history of pandemic, analyze impacts and implications of the pandemic, and critically assess different strategies that may be implemented to reduce the disease spread in the world. This strategies could include any of the fiscal, monetary or foreign exchange rate policies. The implementation of global environmental policies and international cooperation to prevent any disease widespread could be discussed as well.

In attempting the assignment, students are expected to apply concepts, tools and techniques introduced during the course. The assignment is designed to make students (i) apply economic analysis to a real world situation and (ii) search in current newspapers, periodicals, on-line, in order to find data and articles that illustrate a specific issue. (Individual term paper/case study assessing course Learning Objective 6.)

Paper Outline

The paper should have a logical flow to it, and make use of appropriate headings and subheadings. You should follow the suggested format described below:

COVER PAGE. Your paper should include a cover sheet which is similar for all students. Do not show the page number on this sheet. Please include:

· research topic (title)

· your name

· semester date (i.e. Fall 2022)

· instructor’s name

In case you have questions on how to start your page numbering on a different page, do a google search.

ABSTRACT. Abstract should not exceed 200 words and should summarize the main points of your paper. Do not show the page number on this sheet.

TABLE OF CONTENTS (1 page). Do not show the page number on this sheet.

1. INTRODUCTION Start page numbering at “1.” In the Introduction you should:

• briefly define globalization, its types, aspects, importance, evolution, etc.;

• briefly describe a specific global phenomenon, (you are going to analyze in the paper (a detailed description of the phenomenon under consideration should appear in the Discussion part);

• carefully explain how this phenomenon fits into/relates to the process of economic globalization, that is, whether it reflects globalization of consumption, globalization of production and ownership, or globalization of labor;

• describe how your paper is organized, that is, what you are going to discuss in each of the following sections.

2. DISCUSSION/ANALYTICAL PART It is recommended that you break this part into several sections (and sub-sections) with appropriate headings (sub-headings). Please provide a comprehensive demand and supply side analysis.

3. SUMMARY AND CONCLUSIONS . Your analysis should lead you to reasonable conclusions.

REFERENCES/BIBLIOGRAPHY should include the references that you cite, but also a listing of the material that contributed to your body of knowledge. Where did you look for answers? If it helped you, please include a reference. Use of information from outside sources that is not attributed will be considered plagiarism. The consequences of academic dishonesty are discussed in the Student Manual. Reference/Bibliography section should give full information. Authors of articles and books and material without specific authors or editors, such as government documents, bulletins, or newspapers, are to be listed alphabetically. Include page numbers only when appropriate. Consistency is more important than style. Be sure to acknowledge the source of all information from outside sources either in footnotes or in the text. In-text quotations must correspond exactly with the original in wording, spelling, and punctuation. Page numbers must be given. Changes must be indicated: use brackets to identify insertions; use ellipsis dots (…) to show omissions. Also indicate where emphasis has been added. Only lengthy quotations (more than 50 words) should be separated from the text; such quotations must be double-spaced and indented at the left margin. References to authors in the text must exactly match those in the Reference/Bibliography section.

APPENDICES. Here you should put your tables, graphics (such as bar charts, trend lines, etc.) and any other important materials. Tables must be designed to fit comfortably on a page. For tables, use the 'create table' feature in MS-Word. Each table must have a title and be numbered

consecutively with Arabic numbers. Do not abbreviate in column headings, etc. For example, spell out "percent"; do not use the percent sign. Place a zero in front of the decimal point in all decimal fractions (i.e., 0.357, not .357). Each table should be no more than 10 columns wide.

Figures should be supplied as high quality. Figures should be produced in black and white. Tints and complex shading should be avoided. Figures must have a title and be numbered consecutively with Arabic numbers.

Submission Format

LENGTH REQUIREMENTS:

The text of your paper (the text only, that is, not including the Cover Sheet, Abstract, Table of Contents, Bibliography/References, Tables, Charts, and other appendices) may not exceed 5pages (excluding the reference list).

FONT:

Use any 11-12 point standard font (Times New Roman, Garamond, Verdana, Courier New). The main thing is to keep it consistent throughout the entire text.

LINE SPACING:

Use single line spacing.

PARAGRAPHS:

Allow one space between paragraphs.

GRAMMAR AND PUNCTUATION:

Final versions of your paper should reach the instructor in clear and grammatically correct English. Where necessary authors must ensure that their assignments have been checked for errors of English by a person with perfect command of the language.

For capitalization, punctuation, quotations, tables, captions, and all matters of bibliographical style, follow the practices recommended by the APA Style.

Also, you may use the Chicago Manual of Style. The 15th edition of the Chicago Manual of Style is available online to all UHV users – on campus and remotely. You can find it under the “List of All Databases A-Z” in the Quick Links box at the VC/UHV Library. Adherence to the APA or Chicago style is recommended, although this is not critical – as long as you are consistent throughout the paper. The UHV Student Success Center offers several online workshops and presentations as well as writing assistance.

Student Success Center Writing Center

Submission Requirements

Papers must be submitted during the period specified on the Course Schedule. Early or late assignments will not be accepted.

Submit your paper electronically via the ASSIGNMENTS tool on Blackboard.

Your paper must be saved as ONE file. Submissions consisting of several files will not be accepted.

The name of the file should be Paper_Your last name. For example, Paper_Smith.

Preferred file format is PDF (not DOC or DOCX!!!). If you are using the newest version of MS-Word, click on the “SAVE AS” button and then choose “PDF” from the “SAVE AS TYPE” options. If this option is not available on your PC, you can google free tools to use online.

Grading Policy

Grades will be based on depth of analysis, evidence of research, quality of writing, and careful adherence to the submission requirements (see above). Incoherent papers will not receive a passing grade, and plagiarized papers will receive a “zero” (additional penalties may be imposed, as well).

Academic Dishonesty

Copying of another’s work and representing it as your own work is a serious academic offense, and will be treated as such. Failure for the course is the common penalty for even moderately serious instances of dishonesty. (See the UHV Student Handbook.)

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WP/20/30

Competition, Competitiveness and Growth in Sub-Saharan Africa

by Reda Cherif, Sandesh Dhungana, Xiangming Fang, Jesus Gonzalez-Garcia, Miguel Mendes, Yuanchen Yang, Mustafa Yenice, and Jung Eun Yoon

IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.

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© 2020 International Monetary Fund WP/20/30

IMF Working Paper

African Department

Competition, Competitiveness and Growth in Sub-Saharan Africa

Prepared by Reda Cherif, Sandesh Dhungana, Xiangming Fang, Jesus Gonzalez-Garcia, Miguel Mendes, Yuanchen Yang, Mustafa Yenice, and Jung Eun Yoon*

Authorized for distribution by Papa N’Diaye February 2020

IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.

Abstract

Does greater product market competition improve external competitiveness and growth? This paper examines this question by using country-and firm-level data for a sample of 39 sub-Saharan African countries over 2000–17, as well as other emerging market economies and developing countries, and finds that an improvement in domestic competition is associated with a signficant increase in real GDP per capita growth rate, achieved mainly through an improvement in export competitiveness and productivity growth. Price levels, including of essential items, are also generally lowered with an increase in competition. Moreover, at the firm-level, evidence shows that greater competition—proxied through a decline in corporate market power—is associated with an increase in firm’s investment and the labor’s share in output. These effects are more pronounced in the manufacturing sector and among domestic firms compared to foreign firms. JEL Classification Numbers: D2, D4, E2, F6, J3, K2, L1, L4

Keywords: Markups; Market Power; Competition; Sub-Saharan Africa

Authors’ E-Mail Addresses: Reda Cherif: [email protected]; Sandesh Dhungana: [email protected]; Xianming Fang: [email protected]; Jesus Gonzalez-Garcia: [email protected]; Miguel Mendes: [email protected] ; Yuanchen Yang: [email protected]; Mustafa Yenice: [email protected]; Jung Eun Yoon: [email protected]

*The research underlying this paper was initiated in the context of the preparation of IMF’s October 2019 Regional Economic Outlook for Sub-Saharan Africa. We would like to thank Mahvash Saeed Qureshi and David Robinson for their guidance, as well as IMF colleagues for helpful comments and suggestions, and Charlotte Vazquez for editorial assistance. The usual disclaimer applies.

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Contents

I. INTRODUCTION………………………………………………………………………………………………….. 4

II. FRAMEWORK FOR THE EMPIRICAL ANALYSIS………………………………………………. 6

III. DATA ………………………………………………………………………………………………………………… 7 A. Country-level Competition Data………………………………………………………………………….. 7 B. Firm-level Competition Data ………………………………………………………………………………. 7 C. Other data ……………………………………………………………………………………………………….. 10

IV. STYLIZED FACTS……………………………………………………………………………………………. 10 A. Country-level Competition Indicators ………………………………………………………………… 10 B. Firm-Level Competition Indicators…………………………………………………………………….. 11 C. Competition across Sectors ……………………………………………………………………………….. 13

V. COMPETITION AND MACROECONOMIC PERFORMANCE …………………………….. 14 A. Growth …………………………………………………………………………………………………………… 14 B. Channels of Transmission …………………………………………………………………………………. 15 C. Welfare …………………………………………………………………………………………………………… 15

VI. FIRM DYNAMICS AND COMPETITION ………………………………………………………….. 17 A. Investment………………………………………………………………………………………………………. 17 B. Exports …………………………………………………………………………………………………………… 18 C. Labor Shares……………………………………………………………………………………………………. 18 D. Productivity…………………………………………………………………………………………………….. 19

VII. HOW TO BOOST COMPETITION IN DOMESTIC MARKETS? ………………………… 19 A. Product Market Liberalization …………………………………………………………………………… 19 B. Competition Policies ………………………………………………………………………………………… 20 C. Complementary Policies …………………………………………………………………………………… 22

VIII. CONCLUSION……………………………………………………………………………………………….. 23

References………………………………………………………………………………………………………………. 25

Tables…………………………………………………………………………………………………………………….. 28

Figures……………………………………………………………………………………………………………………. 42

I. INTRODUCTION

Competition among firms is generally deemed an essential driving force of market economies. It ensures an efficient allocation of resources as factors are allocated to their best use, and generates firm dynamics that boost innovation, productivity growth, and external competitiveness—translating into macroeconomic gains.2 Moreover, by limiting unfair pricing, discriminatory practices, and rent extraction, competition is seen to have significant welfare, employment generation, and distributional implications as well.

The expected benefits of competition are, however, more likely to accrue in the absence of market distortions. Where market distortions exist— whether in advanced economies or low-income countries—it is often argued that competition, especially from foreign entrants, can hurt the domestic industry and create dominant firms that end up stifling competition and harming consumer welfare. Such concerns generally lead to trade and other regulatory barriers that restrict the entry of private firms in domestic markets. Nevertheless, many of these fears can be mitigated by implementing an appropriate policy framework that encompasses the opening of the market along with a strong competition law and enforcement agency. By and large, existing evidence shows that competition and a well-crafted competition policy framework can help to improve welfare and other macroeconomic outcomes (Dutz and Hayri 1999; UNCTAD 2004; Aghion and Griffith 2005; OECD 2014).

Despite the advantages of competition, markets are often characterized by anticompetitive practices and structures, especially in developing countries. Sub-Saharan Africa is no exception— monopolies, especially state-owned, are widely prevalent, and single operators hold large market shares in key sectors in many countries. The lack of competition has significant potential costs, hurting the poor through higher prices of essential items and undermining external competitiviness and economic growth.3 Although the issue of declining competition and rising corporate market power has received much attention in recent years in the context of advanced and emerging market economies (Autor and others 2017; De Loecker and Eeckhout 2018; De Loecker and others 2018; IMF 2019a), a systematic analysis for emerging market economies and developing countries, and in particular for sub-Saharan Africa, remains lacking.

Against this background, this paper aims to broaden the understanding of the state of product market competition in sub-Saharan Africa by bringing together country and firm-level data from several sources to explore the following key questions. How has product market competition in sub-Saharan Africa evolved over the years and how does it compare to other regions? What are the macroeconomic implications of competition for external competitiveness, economic growth, and consumer welfare? How does competition affect firm behavior and performance to generate observed macroeconomic outcomes? What role

2 The dynamic efficiency gains conferred by competition are based on the Schumpeterian “creative destruction” hypothesis, which postulates that competition drives innovation and constant change, leading the least productive firms to exit the market and the most productive firms to survive (Schumpeter 1942). To reap the dynamic benefits of competition, however, firms must be able to enter, upgrade, and exit easily. 3 World Bank (2016), for example, estimates that retail prices of essential food items are at least 24 percent higher in African cities than in other major cities around the world, while cement prices are, on average, about 183 percent higher than world prices.