Financial Sustainability of Funded Pension Systems in OECD Countries at Demographic Risks

2016 ◽  
pp. 243-252
Author(s):  
Nepp Alexander
Keyword(s):  
Oecd Countries ◽  
Financial Sustainability ◽  
Pension Systems

Analysis of financial sustainability indicators of higher education institutions on foreign direct investment

2020 ◽  
Vol 22 (1) ◽  
pp. 77-99
Author(s):  
Faris Nasif Alshubiri
Keyword(s):  
Higher Education ◽  
Tertiary Education ◽  
Higher Education Institutions ◽  
Oecd Countries ◽  
Order Theory ◽  
Sustainability Indicators ◽  
Financial Sustainability ◽  
Education Expenditure ◽  
Pecking Order Theory ◽  
Content Type

Purpose The purpose of this study is to examine the impact of financial sustainability indicators of higher education on foreign direct investment (FDI) using empirical evidence from 26 Organization for Economic Co-operation and Development (OECD) countries. The basic criterion for determining the financial sustainability of higher education institutions included indicators of income generated by higher education institutions being greater than the operational costs. However, this requires financial sustainability, which depends on financial self-sufficiency without seeking external financial assistance. This situation is affected by investment attractiveness. Design/methodology/approach Three quantitative proxies were used in this study to explain the financial sustainability indicators in higher education institutions of OECD countries: financial expenditures proxy measured by current tertiary education expenditure (CE); efficiency proxy measured by university-life expectancy (ULE) and endogenous growth proxy measured by gross enrolment tertiary ratio (GETR) to show the effect on FDI. Also, this study used six control variables considered an important part of experimental design and refers to contributing factors that were eliminated to clarify the independent variable and a dependent variable nexus. The quantitative data was collected from World Development Indicators (WDI). This study applied a STATA version using panel data techniques for over 15 years from 2001 to 2015 and also used fixed effect (FE) and random effect (RE) estimations to address problems of heterogeneity. To mitigate the endogeneity problem, the generalized method of moments (GMM) was also used. Findings The results of this study were derived from the adoption of financial models applied in higher education institutions to test the financial sustainability indicators. Based on the RE and FE results, a one per cent increase in the current tertiary education expenditure caused about 0.19 and 0.18 per cent increase in FDI in the OECD economies. This positive and significant impact was higher when considering the problem of endogeneity by applying the GMM estimations. FDI grew by about 0.22 per cent when the CE increased by one percent. Meanwhile, there was a significant and negative relationship between FDI and the GETR variable for the FE results but this previous relationship was insignificant for RE estimations. The FDI in OECD economies decreased by about 0.0006 per cent when the GETR increased by 1 per cent. This negative effect became larger when applying the GMM estimations. Finally, the ULE results showed there was a positive and insignificant relationship between ULE and FDI for all estimators. Practical implications The management and analysis of the financial health indicators is necessary to evaluate educational activities but is not sufficient to achieve financial sustainability, which extends beyond the indicators of financial health to encompass factors such as student achievements; research and scientific output; community engagement; productive capacity; quality inputs; risk and infrastructure; and systems. Originality/value This study is considered one of the few existing studies examining the ways in which to achieve financial sustainability in higher education institutions using quantitative financial methods. Specifically, this study adopted Pecking order theory in its analysis of the financial sustainability indicators to clarify whether the financial sustainability indicators of higher education institutions lead to an improvement in the attractiveness of foreign investment in OECD countries in the long run. The findings contribute to the necessity of adopting internal financing sources in accordance with the Pecking Order theory to help achieve financial sustainability growth.

Free movement of workers and the RESAVER scheme for researchers

2017 ◽  
Vol 19 (2) ◽  
pp. 172-185 ◽  
Author(s):  
Maria-Cristina Degoli
Keyword(s):  
Qualitative Methodology ◽  
Pension Fund ◽  
Financial Sustainability ◽  
Successful Implementation ◽  
Retirement Savings ◽  
Pension Systems ◽  
Cross Border ◽  
Free Movement Of Workers ◽  
Key Features ◽  
The Creation

This paper aims to introduce the key features of the Retirement Savings Vehicle for European Research Institutions (RESAVER) that went live in September 2016. The pension fund was established for European researchers to allow them to accumulate their retirement provisions in one place, while changing jobs and moving between countries. The research used a qualitative methodology, analysing documents and legislation concerning social security in Europe. It describes how the measures taken by Member States to deal with the challenges facing the financial sustainability of pension systems are creating obstacles to workers’ mobility. The analysis of the feasibility study for the creation of a pan-European pension vehicle shows that it is possible to achieve a minimum harmonisation in pension rights. The successful implementation of this Retirement Savings Vehicle is likely lead to two main results. First, it could dissolve existing barriers to workers’ mobility and, secondly, it could ensure the financial adequacy for future pensions. In addition, it is highly likely that such cross-border pension product would foster the creation of a true European labour market.

A Crisis of Longer Life: Reforming Pension Systems

1999 ◽  
Vol 5 (1) ◽  
pp. 55-113 ◽  
Author(s):  
C.D. Daykin ◽  
D. Lewis
Keyword(s):  
European Union ◽  
Latin America ◽  
Social Security ◽  
Eastern Europe ◽  
Central And Eastern Europe ◽  
Oecd Countries ◽  
Demographic Ageing ◽  
Pension Systems ◽  
Pension Schemes ◽  
The World

ABSTRACTSocial security pension schemes around the world are facing a number of problems, of which demographic ageing is the most commonly discussed. This paper provides an overview of expected future demographic developments in European Union and some other OECD countries, and evaluates some of the range of solutions which have been, or are being, considered to address this and other problems facing social security in the late 1990s, drawing on examples from OECD countries, from Latin America and from central and eastern Europe. Consideration is given to the possibilities for increasing the level of funding in social security pension schemes or developing funded complementary pension schemes.

Management of investment risks in the pension systems of OECD countries and Russia

2015 ◽  
Author(s):  
Alexander N. Nepp ◽  
Oleg I. Nikonov ◽  
Paulina V. Kryuchkova ◽  
Alexander N. Semin
Keyword(s):  
Oecd Countries ◽  
Pension Systems

scholarly journals FINANCIAL AND SOCIAL SUSTAINABILITY PENSION SYSTEMS IN THE FACE OF DEMOGRAPHIC RISKS

2017 ◽  
Vol 5 ◽  
pp. 331-336
Author(s):  
Alexander Nepp ◽  
James Okrah
Keyword(s):  
Distribution System ◽  
Pension Fund ◽  
Pension System ◽  
Financial Sustainability ◽  
Macroeconomic Factors ◽  
Pension Systems ◽  
The Status ◽  
The Face ◽  
The Russian Federation ◽  
Main Instrument

The ongoing distribution of the pension system is on the threshold of losing its sustainability, financially, which has produced a deficit in the budget of the Pension Fund of the Russian Federation and the deflection of pension funds to the distribution system in 2014. This situation was to some extent caused by demographic risks. Funded systems could become the main instrument for mitigating the demographic problem of the distribution pension system. But the problem is, these systems are unprotected to demographic risks as well.The paper examines the effect of demographic uncertainty on funded pension systems. It describes the process necessary for the financial sustainability of a funded pension system under the force of demographic and macroeconomic factors. It explores the conformity of Russian funded pension systems and that of OECD countries with the status of financial sustainability in the time from 1958 to 2012, making a prognosis for the financial viability prospects.

Retirement Pension Reforms in Six European Social Insurance Schemes between 2000 and 2017: More Financial Sustainability and More Gender Inequality?

2018 ◽  
Vol 18 (4) ◽  
pp. 501-515
Author(s):  
Manuela Arcanjo
Keyword(s):  
Gender Inequality ◽  
Social Insurance ◽  
Financial Sustainability ◽  
The European Union ◽  
Eligibility Criteria ◽  
Retirement Pension ◽  
Pension Systems ◽  
The Social ◽  
Legislative Amendments ◽  
State Pension

In 2000, the European Union established three principles that should guide Member State pension systems and their reforms: the financial sustainability of pension systems; adequacy of pensions; and the modernisation of systems. The latter included the achievement of greater gender equality and sought to respond to the significant gender gaps in public pension systems. This article demonstrates how the reforms carried out over the period 2000–2017 have focused on strengthening the financial sustainability of systems but may also have contributed to even greater gender inequality in old age protection. To this end, we examine the major legislative amendments concerning eligibility criteria and entitlement conditions in six countries (Austria, Belgium, France, Germany, Portugal and Spain), as representative of the social insurance scheme.

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