Post by account_disabled on Dec 7, 2023 6:02:24 GMT 2
Impoverishing growth theory – export-oriented growth in poorer countries would worsen their terms of trade so much that they would be worse off than if they had not grown at all.
Prebisch’s theory – there is a steady deterioration in the price relationships of minerals and agricultural commodities relative to the prices of industrial goods over the long term.
Another negative aspect is that emerging markets are C Level Executive List often politically unstable with a socio-economic situation that can change rapidly. In addition, they are vulnerable to any unrest or attacks. In 2019, when Indian troops attacked a terrorist camp inside Pakistan, the Mumbai stock market crashed momentarily and stocks fell nearly 10%, only to make up half of those losses a day later. Even a small outbreak of panic can ignite a long-term crisis or, “calm down” after just a few days.
The main potential of emerging markets is technological resources and capabilities. The determining factor in the development of technology is human capital. In most emerging countries, the population is very young, and consequently, the labor market is determined by young and creative personnel. In addition, these countries have a high capacity for skilled labor.
The systematic development of education, computerization and digitization of systems and scientific research institutes has contributed to a significant increase in intellectual capacity in emerging markets. One indicator for assessing technological capabilities is the number of patent applications filed. World Bank data shows that most emerging markets rank first in the number of patents. The leading country in this regard is China, where the number of applications filed has been steadily increasing since 2011. Another positive aspect is the increase in foreign investment, which has been visible in emerging markets since the beginning of the 21st century.
Prebisch’s theory – there is a steady deterioration in the price relationships of minerals and agricultural commodities relative to the prices of industrial goods over the long term.
Another negative aspect is that emerging markets are C Level Executive List often politically unstable with a socio-economic situation that can change rapidly. In addition, they are vulnerable to any unrest or attacks. In 2019, when Indian troops attacked a terrorist camp inside Pakistan, the Mumbai stock market crashed momentarily and stocks fell nearly 10%, only to make up half of those losses a day later. Even a small outbreak of panic can ignite a long-term crisis or, “calm down” after just a few days.
The main potential of emerging markets is technological resources and capabilities. The determining factor in the development of technology is human capital. In most emerging countries, the population is very young, and consequently, the labor market is determined by young and creative personnel. In addition, these countries have a high capacity for skilled labor.
The systematic development of education, computerization and digitization of systems and scientific research institutes has contributed to a significant increase in intellectual capacity in emerging markets. One indicator for assessing technological capabilities is the number of patent applications filed. World Bank data shows that most emerging markets rank first in the number of patents. The leading country in this regard is China, where the number of applications filed has been steadily increasing since 2011. Another positive aspect is the increase in foreign investment, which has been visible in emerging markets since the beginning of the 21st century.