scholarly journals Macroeconomic impacts of fiscal shocks on the Moroccan economy: a disaggregated SVAR analysis

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Youssef Alami ◽  
Issam El Idrissi ◽  
Ahmed Bousselhami ◽  
Radouane Raouf ◽  
Hassane Boujettou
Keyword(s):  
Economic Growth ◽  
Interest Rates ◽  
Public Spending ◽  
Structural Shocks ◽  
Content Type ◽  
Fiscal Multipliers ◽  
The Government ◽  
The Impact ◽  
Fiscal Shocks

PurposeThe present paper aims to evaluate the structural impact of exogenously induced fiscal shocks on the Moroccan economy. This entails an analysis of the effect on the GDP of COVID-19-induced fiscal shocks manifesting in terms of budgetary revenues and expenditures. A key aspect of this analysis addresses the size of the tax and fiscal multipliers.Design/methodology/approachThe study examines the structural relationship between five variables during the period between Q1 2009 and Q2 2020 using an SVAR approach that allows for a dynamic interaction between ordinary expenditures and revenues on a quarterly basis.FindingsPositive structural shocks on public spending are likely to negatively impact economic growth. Negative economic growth, in turn, will damage price levels and interest rates, mainly over the long term. However, public-revenue-multiplier-associated shocks exceed these price- and interest-rate multiplier-associated shocks. Indeed, a structural shock to ordinary revenues can have a positive but insignificant impact on the GDP stemming from the ensuing decrease in the government budget deficit that proceeds from the increase in government revenues.Originality/valueThis is one of the first studies in the Moroccan context to assess the impact of the current worldwide pandemic on public finances. In addition, this study highlights the importance of boosting economic recovery through public spending.

Money supply and inflation impact on economic growth

2019 ◽  
Vol 12 (1) ◽  
pp. 121-136 ◽  
Author(s):  
Dinh Doan Van
Keyword(s):  
Economic Growth ◽  
Monetary Policy ◽  
Money Supply ◽  
Karl Marx ◽  
Continuous Increase ◽  
Content Type ◽  
The Government ◽  
Short Time ◽  
The Impact

Purpose At present, countries are concerned about inflation and the impact of inflation on each country’s economic growth. This inflation has been said by economists that inflation is a phenomenon of currency and currency, which has caused inflation in some countries by their monetary policy. According to the economic theory of Karl Marx, Irving Fisher, Friedman, inflation is caused by a continuous increase in the money supply. Design/methodology/approach The economic theories of Fisher, Friedman and an econometric model are applied to analyse the relationship between money supply and inflation. Besides, Vietnam’s and China’s research data are also collected in the period of 2012-2016. Findings It is found out that the continuous increase in the money supply causes inflation in the long-term, but the continuous increase in the money supply growth does not cause inflation in a short time, this was analyzed based on the theory of monetary quantity. Moreover, Chia’s and Vietnam’s correlations of the money supply growth and inflation are 99.1 per cent. These correlations are very close. Originality/value Research results show that money supply and inflation are closely related, and the money supply directly affects economic growth. Therefore, the government should have the relevant monetary policy to grow the economy and proposals to make monetary policy, control inflation levels and stimulate economic growth.

Australian central bank holds rate as growth slips

2021 ◽  
Keyword(s):  
Economic Growth ◽  
Central Bank ◽  
Interest Rates ◽  
Labour Markets ◽  
Content Type ◽  
Commercial Lenders ◽  
The Government ◽  
Roll Out ◽  
Growth Forecasts

Significance The RBA has cut its growth forecasts amid rising job losses, weakening demand and increasing signs that the latest COVID-19 lockdowns will continue to slow the economy until the pace of the vaccine roll-out programme can be increased. Impacts Although the RBA is independent, the government will hope it keeps rates low ahead of the elections due next year. Commercial lenders could raise interest rates independently of the RBA if inflation remains high. Wage pressures will re-emerge as labour markets tighten but may be mitigated by the extent of underemployment. Economic growth will be uneven across the country in coming months as pandemic-related restrictions vary by location.

Accounting for gaming in the time of plague: COVID-19 in Macau

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Carlos Noronha ◽  
Jieqi Guan ◽  
Sandy Hou In Sio
Keyword(s):  
Critical Event ◽  
Gaming Industry ◽  
Content Type ◽  
The Public ◽  
The Social ◽  
Social Account ◽  
The Government ◽  
The Impact ◽  
Practical Implications

Purpose While the COVID-19 virus has been spreading worldwide, some studies have related the pandemic with various aspects of accounting and therefore emphasized the importance of accounting research in understanding the impact of COVID-19 on society as a whole. Recent studies have looked into such an impact on various industries such as retail and agriculture. The current study aims at applying a sociological framework, sociology of worth (SOW), to the gaming industry in Macau, the largest operator of state-allowed gambling and entertainment in China, which will allow for its development during the COVID-19 pandemic to be charted. Design/methodology/approach The study uses the theory of SOW as a framework and collects data from various sources, such as the government, gaming operators and the public, to create timelines and SOW frameworks to analyze the impact of the virus on the gaming industry and the society as a whole. Findings Detailed content analysis and the creation of different SOW matrices determined that the notion of a “lonely economy” during a time of a critical event may be ameliorated in the long term through compromises of the different worlds and actors of the SOW. Practical implications Though largely theory-based, this study offers a thorough account of the COVID-19 incident for both the government and the gaming industry to reflect on and to consider new ways to fight against degrowth caused by disasters or crises. Social implications The SOW framework divides society into different worlds of different worths. The current study shows how the worths of the different worlds are congruent during normal periods, and how cracks appear between them when a sudden crisis, such as COVID-19, occurs. The article serves as a social account of how these cracks are formed and how could they be resolved through compromise and reconstruction. Originality/value This study is a first attempt to apply SOW to a controversial industry (gaming) while the effects of the COVID-19 pandemic are ongoing. It offers a significant contribution to the social accounting literature through its consideration of the combination of unprecedented factors in a well-timed study that pays close attention to analyses and theoretical elaboration.

Effects of zakat on the economic growth in selected Islamic countries: empirical evidence

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Khoutem Ben Jedidia ◽  
khouloud Guerbouj
Keyword(s):  
Economic Growth ◽  
Growth Factor ◽  
Panel Data ◽  
Aggregate Demand ◽  
Empirical Support ◽  
Dynamic Panel Data ◽  
Content Type ◽  
Muslim Countries ◽  
The Government ◽  
The Impact

Purpose This study aims to examine the impact of zakat on the economic growth for a sample of Muslim countries. As a matter of fact, Zakat is a religious tax on wealth paid annually to specified recipients. As it leads to income redistribution and increases the aggregate demand, zakat can be a growth factor in the Islamic framework. Design/methodology/approach This paper is based on a dynamic panel data model for the purpose of investigating the role of zakat in the economic growth for a sample of eight Muslim countries during the period ranging from 2004 to 2017. The general method of moments is applied. Findings The findings provide evidence that zakat stimulates the country’s growth. Indeed, as zakat funds are directed to increase consumption, investment or government expenditure, they spur on the economic growth. Moreover, the authors come to the conclusion that more trade openness allows an increase in the real gross domestic product (GDP) per capita. However, the broad money to GDP and population growth rate seem insignificantly associated with the economic growth for the sample considered. Practical implications The findings have substantial implications for the economic policy in Muslim countries. Authorities may further rely on zakat to boost the economic growth. First, it is essential to improve the muzakki’s knowledge on zakat to increase their intention, and so their ability and willingness to pay zakat. Second, the government intervention in both zakat collect and distribution becomes mandatory. Therefore, the contribution of zakat to the economic growth will be higher. This requires better-quality services of zakat institutions. Originality/value A few studies have empirically looked into the impact of zakat on the economic growth, especially for panel data. Hence, the present study tries to enrich the literature on this topic. It creates significant evidence regarding the relevance of zakat in Muslim countries. The findings provide empirical support that zakat is an additional growth factor in the Islamic framework.

Portuguese coalition parties may clash over austerity

2016 ◽  
Keyword(s):  
Economic Growth ◽  
European Commission ◽  
Budget Deficit ◽  
Banking Sector ◽  
Content Type ◽  
Rating Agencies ◽  
Structural Funds ◽  
The Government

Significance This reflects the significant risks lying ahead for the government despite the European Council's decision on August 9 to waive fines for Portugal over its excessive budget deficit in 2015. Impacts The European Commission retains the possibility of suspending structural funds for Portugal. The decision to waive the fine could undermine the credibility of EU rules in the long term. Slower economic growth and the weak banking sector could lead to Portugal being downgraded by rating agencies.

Oreskovic government in Croatia may prove short-lived

2016 ◽  
Keyword(s):  
Political Instability ◽  
Public Spending ◽  
Economic Restructuring ◽  
Right Wing ◽  
Case Scenario ◽  
Content Type ◽  
Growth Prospects ◽  
The Government ◽  
Social Conservatism

Significance After protracted negotiations, Croatia, at last, has a government, comprising the conservative Patriotic Coalition -- the Croatian Democratic Union (HDZ), plus a few small parties -- and the centre-right Bridge ('Most') of Independent Lists. The government is unusual because it is led by a non-partisan figure, Tihomir Oreskovic, a businessman who grew up in Canada and has only a shaky grasp of the Croatian language. In a best-case scenario, the government could deliver important and necessary reforms. Impacts Efforts to cut public spending will reduce the risk of a damaging financing crisis. A programme of economic restructuring will boost Croatia's long-term growth prospects. The election of two right-wing parties will consolidate the drift towards social conservatism. Tensions in the coalition will perpetuate political instability and could precipitate new elections.

Carbon emissions and industrial growth: an ARDL analysis for Pakistan

2016 ◽  
Vol 10 (4) ◽  
pp. 642-658 ◽  
Author(s):  
Muhammad Irfan Javaid Attari ◽  
Matloub Hussain ◽  
Attiya Y. Javid
Keyword(s):  
Economic Growth ◽  
Carbon Dioxide ◽  
Climatic Change ◽  
Industrial Sector ◽  
Series Data ◽  
Clear Understanding ◽  
Industrial Growth ◽  
Content Type ◽  
The Impact

Purpose This paper is a direct extension of the work by Hussain et al. (2012). They have investigated a long-term relationship between climatic change and economic growth in case of Pakistan. Agricultural sector plays an important role in economic field, whereas industrial sector is the main source of carbon dioxide (CO2) emission. Therefore, this study aims to replace economic growth variable with industrial growth in case of Pakistan. Design/methodology/approach Investigation is made on the basis of the environmental Kuznets curve by using the time series data during the period 1971-2009. The per capital carbon dioxide (CO2) emission is used as an environmental indicator and per capita industrial income as the economic indicator. Different econometric tools including augmented Dickey–Fuller, autoregressive distributed lag and Granger-causality test are used to verify this relationship. Findings The empirical findings will help the policy-makers of Pakistan in developing new standards and monitoring networks for reducing CO2 emission. It is essential to extend the current research work at provincial and different sectors levels in order to have clear understanding about the impact of current emission rate. Originality/value This study replaces economic growth variable with industrial growth in case of Pakistan because the industrial sector is the main source of carbon dioxide (CO2) emission. This study is to investigate a long-term relationship between climatic change and industrial growth in case of Pakistan.

Australian PM challenge will hinder policy agenda

2015 ◽  
Keyword(s):  
Political Parties ◽  
Interest Rates ◽  
Prime Minister ◽  
Party Leader ◽  
Content Type ◽  
Developed Economies ◽  
Housing Bubbles ◽  
The Impact ◽  
The Eu

Significance Although a victory in the short term for Abbott, the narrow margin will only intensify doubts about his long-term prospects as party leader and as prime minister. The challenge continues a trend of instability across Australia's main political parties. The country is poised to enter a record 25th year of uninterrupted economic growth, yet has changed prime minister four times since 2007. Impacts Australia will remain one of the most robust developed economies throughout 2015, with growth rates far above those of the EU. The Reserve Bank's decision to cut interest rates indicates that there are worries of the impact of the China-induced mining slowdown. Concerns in state capitals about housing bubbles will grow and may be an issue in the next federal election.

Poland-EU constitutional crisis will not end soon

2016 ◽  
Keyword(s):  
Economic Growth ◽  
European Commission ◽  
Rule Of Law ◽  
Content Type ◽  
The Rule Of Law ◽  
Constitutional Tribunal ◽  
The Government ◽  
Polish Government ◽  
The Eu

Subject European Commission concerns about the rule of law in Poland. Significance The Commission has sent a formal Opinion to the Polish government, activating the first stage in the EU's 'Rule of Law Framework'. It expresses concerns about respect for the rule of law in Poland (a fundamental founding value of the EU), and in particular about the Polish government's handling of the crisis over the Constitutional Tribunal (TK, for Trybunał Konstytucyjny) Impacts Poland's EU position is likely to suffer as a result of the dispute, making it more difficult for it to achieve other political goals. Polish politics will remain unsettled and polarised, with the opposition using the Commission's Opinion to challenge the government. Legal uncertainty may translate into lower investment by individuals and enterprises dampening economic growth in the medium-to-long term.

Nigerian naira will stay static despite high oil price

2018 ◽  
Keyword(s):  
Exchange Rate Regime ◽  
External Debt ◽  
Main Interest ◽  
Content Type ◽  
Multiple Exchange ◽  
The Government ◽  
The Impact ◽  
Capital Intensive ◽  
Impact Of Falling

Subject Nigeria's forex dynamics Significance The multiple exchange rate regime of the Central Bank of Nigeria (CBN) has been vindicated by the naira’s stability over the last nine months. However, the ongoing segmentation of the foreign exchange (forex) market means that each of its windows now has its own set of fundamental drivers, blunting the ability of rising dollar inflows from high oil prices to bring currency appreciation. While this arrangement benefits imports as the government implements its capital-intensive economic recovery plan, it comes at the expense of non-oil private sector growth which has struggled to maintain upward momentum since the end of the recession last year. Impacts The CBN’s decision to hold its main interest rate at a record 14% signals lingering concerns over IEFX outflows ahead of the 2019 elections. The government’s push to re-balance its debt profile by increasing the ratio of external debt will weigh on the naira’s long-term outlook. The impact of falling inflation on the naira is ambiguous given existing import bans and the lack of monetary policy response from the CBN.

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