scholarly journals Real exchange rate undervaluation and sectoral growth in South Africa

2018 ◽  
Vol 9 (4) ◽  
pp. 462-476
Author(s):  
Brian Tavonga Mazorodze ◽  
Dev D. Tewari
Keyword(s):  
South Africa ◽  
Exchange Rate ◽  
Panel Data ◽  
Real Exchange Rate ◽  
Positive Impact ◽  
Dynamic Panel Data ◽  
Dynamic Panel ◽  
Content Type ◽  
Sectoral Growth ◽  
The Impact

PurposeThe purpose of this paper is to establish the empirical link between real exchange rate (RER) undervaluation and sectoral growth in South Africa between 1984 and 2014.Design/methodology/approachThe study employs a dynamic panel data approach estimated by the system generalised method of moments technique in a bid to control for endogeneity.FindingsThe authors find a significant positive impact of undervaluation on sectoral growth which increases with capital accumulation. Also, the authors confirm that undervaluation promotes sectoral growth up to a point where further increases in undervaluation retards growth.Practical implicationsThe results confirm the importance of policies that keep the domestic currency weaker to foster sectoral growth.Originality/valueThe originality of this paper lies in establishing the impact of exchange rate undervaluation on growth at a sector level in the context of South Africa using a dynamic panel data approach.

Value-added intellectual capital and financial performance: evidence from Mauritian companies

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Reena Bhattu-Babajee ◽  
Boopen Seetanah
Keyword(s):  
Financial Performance ◽  
Intellectual Capital ◽  
Positive Impact ◽  
Value Added ◽  
Dynamic Panel Data ◽  
Dynamic Panel ◽  
Content Type ◽  
Data Framework ◽  
Long Run ◽  
The Impact

PurposeThe purpose of this paper is to empirically assess the impact of value-added intellectual capital (VAIC) on the financial performance (FP) of companies in Mauritius.Design/methodology/approachThe research uses a dynamic panel vector error correction model (PVECM) which simultaneously allows for endogeneity and causality issues among the variables used.FindingsThe results show that VAIC enhances corporate FP, with a reported lower effect in the short run as compared to the long run. Other important determinants of firm’s performance are asset turnover, capital turnover and firm’s size. Leverage, on the other hand, is observed to be performance reducing in nature. FP of the companies is also a significant determinant of VAIC, implying reverse causal effects exist between the two variables of interest, namely, VAIC and FP.Research limitations/implicationsThe study can be enhanced by doing an industry-specific comparison of the impact of VAIC on FP for more insights.Practical implicationsIt is recommended that managers pay more attention to the role of firms’ stock of tangible and intangible assets, as this has a positive impact on firms’ FP. Also, the results may help to increase awareness of the importance of effective intellectual capital (IC) management within an organization. More so, as demonstrated by Ståhle et al. (2011), VAIC indicates the efficiency of the company’s labor and capital investments within firms in Mauritius. This study may, therefore, enable Mauritian firms to measure their IC efficiency and develop policies to promote and improve upon their intellectual potential to enhance firm’s performance.Originality/valueThe main theoretical contribution of this paper relates to the assessment and conceptualization of the bi-directional relationship between VAIC and FP. It confirmed that there are self-reinforcing feedback effects between VAIC and FP. Methodologically speaking, this paper investigates the VAIC–FP nexus in a dynamic setting using a dynamic panel data framework, namely, a PVECM which also allows for additional insights into the short- and long-run effects.

Productivity, wages and profits among Belgian firms: do fixed-term contracts matter?

2016 ◽  
Vol 37 (2) ◽  
pp. 303-322 ◽  
Author(s):  
Andrea Garnero ◽  
Romina Giuliano ◽  
Benoit Mahy ◽  
François Rycx
Keyword(s):  
Panel Data ◽  
Labour Productivity ◽  
Dynamic Panel Data ◽  
Methodological Issues ◽  
Dynamic Panel ◽  
State Dependency ◽  
Content Type ◽  
Positive Effects ◽  
Time Invariant ◽  
The Impact

Purpose – The purpose of this paper is to estimate the impact of fixed-term contracts (FTCs) on labour productivity, wages (i.e. labour cost), and productivity-wage gaps (i.e. profits). Design/methodology/approach – The authors apply dynamic panel data techniques to detailed Belgian linked employer-employee panel data covering the period 1999-2006. Findings – Results indicate that FTCs exert stronger positive effects on productivity than on wages and (accordingly) that the use of FTCs increases firms’ profitability. Originality/value – This paper is one of the first to examine the FTC-productivity-wage nexus while addressing three important methodological issues related to the state dependency of the three explained variables, to firm time-invariant heterogeneity, and to the endogeneity of FTCs.

Do low gasoline prices cause more traffic fatalities in the 50 states of the USA? The importance of other factors

2019 ◽  
Vol 46 (3) ◽  
pp. 777-795
Author(s):  
Shawkat Hammoudeh ◽  
Seong-Min Yoon ◽  
Ali Kutan
Keyword(s):  
Panel Data ◽  
Alcohol Consumption ◽  
Dynamic Panel Data ◽  
Gasoline Prices ◽  
Dynamic Panel ◽  
Content Type ◽  
The Usa ◽  
The Media ◽  
Per Capita ◽  
The Impact

Purpose Motivated by the news media and a lack of comprehensive research on the USA, the purpose of this paper is to examine the relationship between changes in road fatalities and gasoline prices, per capita disposable personal income, alcohol consumption per adult, blood alcohol concentration (BAC) limits and gender. Design/methodology/approach This study employs both static and dynamic panel data models, making use of annual data over the 2000–2013 period collected from the 50 states of the USA and the consistent system GMM estimators of the parameters, to estimate the impact of these variables on fatalities per 100,000 persons and per 100,000 vehicles. Findings The results highlight the importance of gasoline prices in determining the level of road fatalities, underscoring that a 10 percent decrease in gasoline prices leads to a 248 increase in the total number of road fatalities, but with many more injuries. Increases in the female-to-total driver ratio have a greater significant positive impact on road fatalities where a 10 percent increase in this ratio increases road fatalities by 1,008 deaths. Increases in registered vehicles per capita also increase the number of fatalities. Other variables such as alcohol consumption per adult and BAC limits are not as important. Policy implications are also provided. Research limitations/implications The results of this study highlight the importance of gasoline prices in determining the number of road fatalities. This factor can be an effective policy measure by which policymakers can offset increases in fatalities due to further drastic declines in future gasoline prices. But the effects of the gasoline prices in determining the number of road fatalities are not as strong as the media would lead us to believe. The media ignores the impact of other factors on fatalities, which results in an overestimation of the impact of gasoline prices. Originality/value This study uses the panel data of 50 US states and the dynamic panel data model. In addition to gasoline price effects on the road fatalities, this study also considers other factors such as gender, gasoline taxes, per capita disposable personal income, per capita alcohol consumption, BAC limits and number of registered vehicles.

scholarly journals Impact of Population Growth on Economic Growth in Africa: A Dynamic Panel Data Approach (1980 -2015)

2018 ◽  
Vol 6 (4) ◽  
Author(s):  
Amade Peter ◽  
Ibrahim H. Bakari
Keyword(s):  
Economic Growth ◽  
Panel Data ◽  
Population Growth ◽  
Negative Impact ◽  
Positive Impact ◽  
Dynamic Panel Data ◽  
African Countries ◽  
Dynamic Panel ◽  
System Gmm ◽  
The Impact

This study examines the impact of population growth on the economic growth of African countries using panel data approach from 1980 -2015. The impact of population growth on economic growth is still largely controversial at national and regional levels. The study used annual secondary data of fifty three (53) African countries sourced from the World Development Indicators database. Data were collected for economic growth, proxied by GDP, population growth, fertility rate, crude death rate and inflation rate. The data were analyzed using descriptive statistics, as well as dynamic panel models of difference and system GMM. The results of the difference and system GMM suggest that population growth exerts a positive impact on economic growth of Africa while fertility has a negative impact on economic growth of Africa. The paper concludes and recommends that population growth impacts positively on economic growth and thus African countries should adopt and implement pragmatic policy measures that will enhance the productivity of its population so as to reap more demographic dividends.

scholarly journals The impact of macroeconomics factors on real exchange rate in Latin America: A dynamic panel data analysis

2020 ◽  
Author(s):  
CARLOS CHAVEZ PADILLA
Keyword(s):  
Exchange Rate ◽  
Real Exchange Rate ◽  
Panel Data Analysis ◽  
Mixed Effects ◽  
Dynamic Panel Data ◽  
Terms Of Trade ◽  
Dynamic Panel ◽  
Macroeconomic Variables ◽  
The Impact ◽  
Dynamic Panel Data Analysis

Abstract This paper study the determinants of real exchange rate from an internal perspective using macroeconomic variables that can be endogenous. We used a GMM System estimator and we transformed our variables using forward orthogonal deviations (FOD) and first differences (FD). For check the robustness of our estimations, we used different sizes of observations. Our results show that terms of trade have negative and significant impact for all sizes. The gross domestic product has positive and significant impact and the rest of variables has mixed effects depending the sizes observations.

scholarly journals The IMPACT OF CORRUPTION ON EXCHANGE RATE: EMPIRICAL EVIDENCE FROM PANEL DATA

2019 ◽  
Vol 6 (1) ◽  
pp. 34
Author(s):  
Jan Muhammad Sohu ◽  
Ikramuddin Junejo ◽  
Farhan Hussain
Keyword(s):  
Exchange Rate ◽  
Panel Data ◽  
Real Exchange Rate ◽  
Positive Impact ◽  
Unit Root Test ◽  
Economic Cost ◽  
Analysis Data ◽  
Developed Countries ◽  
Economic Indicators ◽  
The Impact

Purpose- This study examines the economic cost of exchange rate. Pakistan has been facing serious issue in regard of exchange rate and this fluctuations impact on various economic indicators or variables. The overall exchange rate value is being depreciated since 2008, it started from Rs 60 against one dollar and recently it reached to Rs, 134 that are equal to one dollar.  Design/methodology/approach- Time series panel data from 2002-2016 has been used for analysis, it has two cross-sections Pakistan and India. Data is collected from various sources that include Asian Development Bank, Transparency International US and World Economic Indicators. Exchange rate in Pak rupees and Ind rupees, corruption perception index in percentage and foreign borrowings in both Pak rupees and Ind rupees’ variables are taken for analysis. Data will be analyzed through statistical techniques which comprises panel unit root test and panel regression analysis in E-views version 7. Findings- Based on predictable results, all studied variables are found to have significant and positive impact on real exchange rate. Originality/value- In previous studies research scholars investigated overall exchange rate impact on GDP of any economy. This study gives insight into real exchange rate impact on government department corruption of both countries Pakistan and India. This study can be extended to other less developed countries which are also facing problem of exchange rate in their respective countries.

scholarly journals The impact of macroeconomics factors on real exchange rate in Latin America: A dynamic panel data analysis

2020 ◽  
Author(s):  
Carlos Chavez
Keyword(s):  
Exchange Rate ◽  
Real Exchange Rate ◽  
Panel Data Analysis ◽  
Mixed Effects ◽  
Dynamic Panel Data ◽  
Terms Of Trade ◽  
Dynamic Panel ◽  
Macroeconomic Variables ◽  
The Impact ◽  
Dynamic Panel Data Analysis

Abstract This paper study the determinants of real exchange rate from an internal perspective using macroeconomic variables that can be endogenous. We use a GMM System estimator and transform our variables using forward orthogonal deviations (FOD) and first differences (FD). For check the robustness of our estimations, we use different sizes T. Our results show that terms of trade have negative and significant impact for all sizes. Th gross domestic product has positive and significant impact and the rest of variables has mixed effects depending the sizes T.

Investigating the impact of climate change on the tourism sector: evidence from a sample of island economies

2019 ◽  
Vol 74 (2) ◽  
pp. 194-203 ◽  
Author(s):  
Boopen Seetanah ◽  
Sheereen Fauzel
Keyword(s):  
Climate Change ◽  
Panel Data ◽  
Climatic Change ◽  
Tourism Development ◽  
Dynamic Panel Data ◽  
Small Island ◽  
Tourism Demand ◽  
Dynamic Panel ◽  
Content Type ◽  
The Impact

PurposeAlthough it is a widely accepted fact that climate change can negatively impact on tourism demand and affect the economies at the socio-economic level, empirical studies on the climate change tourism development nexus has been quite scant, especially for the case of island economies that are heavily dependent on tourism. This study aims to supplement the literature on climate change and tourism by empirically assessing the relationship between climate change and tourist arrivals for the case of 18 small island developing states over the period from 1989 to 2016.Design/methodology/approachThis paper uses dynamic panel data techniques, namely, a panel vector autoregressive framework, which accounts for dynamic and endogeneity issues.FindingsThe results from the analysis confirm the existence of a significant relationship between climate change and tourism demand in both the long-run and short run. Further analysis shows a bi-directional causality between climatic change and tourism demand while the study also confirms the tourism led growth hypothesis.Research limitations/implicationsThis research supplements the literature on the tourism-environment link, especially for tourism dependent island economies.Practical implicationsResults from this study are important to policymakers who should spare no effort to mitigate the effect of adverse climatic change in the context of tourism development.Originality/valueThis study is built on a unique data set for a sample of island economies and interestingly adopts dynamic panel data analysis to account for dynamics and endogenity in the climate change-tourism development nexus.

The impact of leverage on discretionary investment: African evidence

2018 ◽  
Vol 9 (1) ◽  
pp. 108-125 ◽  
Author(s):  
Edson Vengesai ◽  
Farai Kwenda
Keyword(s):  
Panel Data ◽  
Data Model ◽  
Cash Flows ◽  
Dynamic Panel Data ◽  
Investment Policy ◽  
Panel Data Model ◽  
Dynamic Panel ◽  
Content Type ◽  
Dynamic Panel Data Model ◽  
The Impact

Purpose The purpose of this paper is to explore the impact of leverage on firms’ discretionary investment in Africa. Design/methodology/approach The authors employ a dynamic panel data model estimated with generalised method of moments (GMM) estimation techniques on the panel data of listed African non-financial firms. A dynamic model and the generalised methods of moments estimations are handy in controlling for unobserved heterogeneity, endogeneity, autocorrelation, heteroscedasticity, etc. Findings In spite of different settings, markets, leverage levels and methodologies, the authors found evidence that leverage constrains investment in African firms. The negative impact is more pronounced in firms with low-growth opportunities than in firms with high-growth opportunities. The results are inclined to the theory that leverage plays a disciplinary role to avoid overinvestment. Research limitations/implications African firms’ investment policy does not solely depend on the neoclassical fundamentals determinants of profitability, net worth and cash flows. Financing strategy also has a considerable bearing on the investment policy. The results provide evidence that leverage is a negative externality to the firm’s discretional investment policy for both lowly levered and highly leveraged firms. African firms’ should consider maintaining their low debt levels and rely more on internally generated funds so as not to suppress any available cash flows to interest payments and loan covenants from debt holders. Originality/value The study contributes to the literature on investment and financial leverage by the authors providing evidence from Africa, a developing continent, that has not been explored. It shows how conservative leverage levels of African firms, which have been reported to be rising, are impacting on investments. Pertaining to empirical methodology, the authors employ a dynamic panel data model, the GMM estimation technique, which is robust in controlling endogeneity, and a possible bi-directional causality between leverage and investment which have not been used in literature. The study also enables a comparison of the effect of high leverage and low leverage on firm’s discretional investment.

Does corporate social responsibility affect dividend policy? Empirical evidence in the French context

2022 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Olfa Ben Salah ◽  
Anis Ben Amar
Keyword(s):  
Corporate Social Responsibility ◽  
Panel Data ◽  
Social Responsibility ◽  
Dividend Policy ◽  
Least Squares Method ◽  
Positive Impact ◽  
Alternative Measure ◽  
Content Type ◽  
Corporate Social ◽  
The Impact

Purpose The purpose of this paper is to focus on the impact of corporate social responsibility (CSR) on dividend policy in the French context. In addition, the authors seek to determine if the individual components of CSR influence dividend policy. Design/methodology/approach This study uses panel data methodology for a sample of French non-financial firms between 2008 and 2018. Generalized least squares method is used to estimate the models. Findings Using panel data methodology for a sample of 825 observations for the period 2008–2018, this study finds a positive impact of CSR practices on dividend policy. The authors also find that individual components of CSR positively influence dividend policy. To check the robustness of the results, this study further runs a sensitivity tests, including an alternative measure of dividend policy, all of which confirm the findings. Practical implications This study has examined the impact of CSR on dividend policy in France and may have implications for regulatory, investors, analysts and academics. First, the involvement in CSR best practices encourages companies to pay more dividends to investors. Therefore, investors are more motivated to invest in socially responsible firms than socially irresponsible firms. Second, given the association of CSR with the quality of accounting information and financial markets, regulators should step up recommendations relating to the different societal dimensions of CSR. Originality/value While little previous work has focused on the causal link between CSR and dividend policy, this research is the first, to the authors’ knowledge, to have looked at the impact of CSR on dividend policy in France.

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