Impact of foreign direct investment and international tourism on long-run economic growth of Estonia

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Amin Sokhanvar ◽  
Glenn P. Jenkins
Keyword(s):  
Economic Growth ◽  
Growth Rate ◽  
Growth Strategy ◽  
Policy Implications ◽  
International Tourism ◽  
Potential Threat ◽  
Fdi Inflows ◽  
Economic Growth Rate ◽  
Content Type ◽  
Long Run

PurposeInternational tourism and FDI inflows have generated detectable beneficial impacts on the economy of Estonia in the last decades. However, recently, poor international market conditions mostly caused by the trade war and COVID-19 pandemic have been a potential threat to these two factors. Besides, the poor performance of investments in recent years is behind the stagnation of productivity in Estonia. This study examines the dynamics of the effects of these factors on the rate of economic growth in Estonia and provides policy implications in line with sustained recovery.Design/methodology/approachA nonlinear ARDL technique is employed in this study to investigate the long-run effects of FDI and the degree of tourism specialization on economic growth rate.FindingsOur findings indicate that the economic growth rate of Estonia in the long run has been positively affected by both the rate of FDI inflows and international tourism.Originality/valueThis is the first study that employs a non-linear approach to investigate the dynamics of long-run effects of FDI and tourism specialization on the rate of economic growth in Estonia and provides policy implications in line with optimal growth strategy considering the economic structure, the current level of productivity and available potentials in this economy.

A NOTE ON THE IMPLICATIONS OF AUTOMATION FOR ECONOMIC GROWTH AND THE LABOR SHARE

2017 ◽  
Vol 23 (3) ◽  
pp. 1294-1301 ◽  
Author(s):  
Klaus Prettner
Keyword(s):  
United States ◽  
Economic Growth ◽  
Growth Rate ◽  
Population Growth ◽  
Capital Accumulation ◽  
Technological Progress ◽  
The United States ◽  
Economic Growth Rate ◽  
Labor Share ◽  
Long Run

We introduce automation into a standard model of capital accumulation and show that (i) there is the possibility of perpetual growth, even in the absence of technological progress; (ii) the long-run economic growth rate declines with population growth, which is consistent with the available empirical evidence; (iii) there is a unique share of savings diverted to automation that maximizes long-run growth; and (iv) automation explains around 14% of the observed decline of the labor share over the last decades in the United States.

scholarly journals Scientific Culture and Economic Growth in the Long-Run: On a Capital Perspective

2018 ◽  
Vol 9 (1) ◽  
pp. 39
Author(s):  
Pei-xiao Qi ◽  
Nian Zheng
Keyword(s):  
Economic Growth ◽  
Growth Rate ◽  
Capital Accumulation ◽  
Human Capital Accumulation ◽  
Scientific Culture ◽  
Economic Growth Rate ◽  
Culture Capital ◽  
Long Run ◽  
Capital Growth ◽  
Capital Growth Rate

The cultural capital can be as a kind of asset that embodies, stores and produces the cultural values except for producing the economic values. With the further progress of modern civilization, scientific culture, on an economics perspective, as a combination of intangible and tangible capital, more and more becomes the one of important engine to make economic sustainable growth in the long run for a country. Based on the framework by Barro and Turnvosky, this paper constructed an economic growth model including the factor of scientific culture and mainly found that the impact of scientific culture capital growth rate on human capital accumulation is positive, and then affects economic growth rate. And the greater scientific culture capital growth rate influences the human capital accumulation, the higher economic growth rate is.

Antecedents of FDI options by Thai public firms

2016 ◽  
Vol 39 (3) ◽  
pp. 310-328
Author(s):  
Nattharika Rittippant ◽  
Abdul Rasheed
Keyword(s):  
Economic Growth ◽  
Growth Rate ◽  
Real Options ◽  
Empirical Evidence ◽  
Economic Freedom ◽  
Ownership Concentration ◽  
Economic Growth Rate ◽  
Content Type ◽  
The Real ◽  
Industry Competition

Purpose – This paper aims to develop and test a real-options model investigating the antecedents predicting the types of options exercise (i.e. growth, delay and exit options) by multinational enterprises (MNEs) after their initial foreign direct investment (FDI) announcements. Firm-, industry- and country-specific factors that influence the real options’ processes and different subsequent options to exercise were examined. Design/methodology/approach – Binomial and multinomial logistic regressions were performed on the data collected from 281 pairs of initial FDI (mostly within Asia) announcements and subsequent announcements regarding further investment decisions by 41 Thai MNEs listed in the Securities Exchange of Thailand for 1995-2005. Findings – The empirical evidence shows that host country factors (i.e. economic growth rate and economic freedom), industry competition and ownership concentration have significant effects on the MNEs’ further decisions on whether to grow, delay or exit out of their initial FDI. Originality/value – The findings of this study suggest that the options’ lens is an appropriate approach to study managerial decisions and actions in the face of uncertainty. While the majority of prior empirical literature has dealt with situations that involve option creation, this study goes a step further by examining decisions subsequent to option creation. Option creation is not an end in itself, and only by studying subsequent exercise of options, one can fully appreciate the value of the real options’ approach. The empirical evidence from this study showed that the host country’s factors (i.e. economic growth rate and economic freedom), industry competition and ownership concentration have significant effects on the MNEs’ further decisions on whether to grow, delay or exit out of their initial FDI.

Trade Openness, Financial Development Index and Economic Growth

2014 ◽  
Vol 6 (4) ◽  
pp. 362-375 ◽  
Author(s):  
Dogga Satyanarayana Murthy ◽  
Suresh Kumar Patra ◽  
Amaresh Samantaraya
Keyword(s):  
Economic Growth ◽  
Financial Development ◽  
Trade Openness ◽  
Output Growth ◽  
Domestic Demand ◽  
Policy Implications ◽  
Content Type ◽  
Development Index ◽  
Long Run ◽  
Financial Development Index

Purpose – The purpose of this article is to examine the inter-relationship and direction of causality among three macroeconomic variables such as trade liberalization, financial development and economic growth. Design/methodology/approach – The empirical analysis is based on the principal component analysis as method to construct financial development index (FDI), augmented Dickey–Fuller and Phillips–Perron tests as the unit root test, Johansen’s co-integration test and VECM for direction of causality in the long run among TOP, FDI and economic growth. Findings – The empirical results confirmed that there exists a long-run association among trade openness, financial development and economic growth. This study has also found that there is bidirectional causality between financial development and growth. However, the causality runs from growth to finance is stronger than that from finance to growth. This study also observed unidirectional causality that runs from financial development and economic growth to trade openness. Research limitations/implications – The policy implications that could be drawn from the present study is that, initiation of financial reforms to improve the size of financial system would lead to higher economic growth. Another key implication from this study is that because trade openness has no effect on both domestic financial sector development and output growth, it would be better to deploy the resources into creating a sustained domestic demand rather than concentrating more on the external front in general and trade openness in particular. Originality/value – The study constructs a summary IFD for India by taking into account four broad financial development indicators for the period 1971-2012. The present paper also suggests that it would be better to deploy the resources to create a sustained domestic demand rather than concentrating more on the external front in general and trade openness in particular.

Does terrorism hamper FDI inflows? A pre and post 9/11 analysis

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Imtiaz Arif ◽  
Amna Sohail Rawat ◽  
Lubna Khan
Keyword(s):  
Design Methodology ◽  
Policy Implications ◽  
Sample Period ◽  
Fdi Inflows ◽  
Content Type ◽  
Empirical Estimates ◽  
Pooled Mean Group ◽  
Long Run ◽  
The Relationship

PurposeThis research intends to determine the role of terrorism in defying foreign direct investment (FDI) in top terror effected economies.Design/methodology/approachPanel data on FDI and terrorism from top terror effected economies spanning from 1987 to 2018 were used and the relationship for whole sample was investigated. Later the sample period was divided into pre (1987–2001) and post 9/11 (2002–2018) subsample and same relationship was tested to investigate the normalization of terror effect on FDI. The method of Pooled Mean Group (PMG) was used to test the hypothesis.FindingsThe results showed a negative but statistically insignificant impact of terrorism on the FDI inflows in the long run. Later the sample period was divided into pre (1987–2001) and post 9/11 (2002–2018) subsample. The empirical estimates for pre and post 9/11 periods indicated a negative and statistically significant relationship between terrorism and FDI for pre 9/11 period, and a negative but statistically insignificant relationship between the two variables for post 9/11 period.Originality/valueThe findings suggest several important policy implications for the terror affected countries and are further discussed in the study.

Migration in response to climate change and its impact in China

2017 ◽  
Vol 9 (03) ◽  
pp. 352-373 ◽  
Author(s):  
Yi Sun ◽  
Chengjin Xu ◽  
Hailing Zhang ◽  
Zheng Wang
Keyword(s):  
Climate Change ◽  
Economic Growth ◽  
Growth Rate ◽  
Agricultural Production ◽  
Regional Disparity ◽  
Population Migration ◽  
Cge Model ◽  
Economic Growth Rate ◽  
Content Type ◽  
Production Index

Purpose Climate change will have a significant impact on China’s potential agricultural production and change the distribution of the population in various regions of China, thus producing population migration. This paper aims to analyze China’s population migration in response to climate change and its socio-economic impact. Design/methodology/approach In this paper, the Potential Agriculture Production Index is introduced as an analytical tool with which to estimate the scale of the population migration induced by climate change. Also, this paper constructs a multi-regional computable general equilibrium (CGE) model and analyzes the effect of change in the population distribution pattern on regional economies, regional disparity and resident welfare. Findings The key finding of this paper is that, as a result of changes in potential agricultural production induced by climate change, the Circum-Bohai-Sea region, the industrialized region and the industrializing region, which are the main destination regions of the migrating population, will face a severe labor shortage. In response to population migration, the economic growth rate of the immigrating population regions has accelerated. Correspondingly, the economic growth rate of the emigrating population regions has decreased. In addition, the larger the scale of population migration is, the larger the economic impact is. Migration increases inner-regional disparity and decreases inter-regional disparity. However, overall regional disparity is only somewhat decreased. Originality/value This paper introduces a Potential Agriculture Production Index to estimate the scale of the population migration and introduce a multi-regional CGE model to analyze the correlated social-economic impacts.

Government digital information discovery and exploration: the case of unraveling tourism-led-growth paradox in China

2017 ◽  
Vol 45 (4) ◽  
pp. 212-219
Author(s):  
Maxwell K. Hsu ◽  
Junzhou Zhang ◽  
Yamin Ahmad
Keyword(s):  
Economic Growth ◽  
Growth Rate ◽  
International Tourism ◽  
Chinese Government ◽  
Gdp Growth ◽  
Digital Information ◽  
Model Framework ◽  
Content Type ◽  
Domestic Tourism ◽  
The Relationship

Purpose This study aims to examine the relationship between tourism development and economic growth while considering exports simultaneously. Governments in many countries have been developing and deploying strategies to attract tourism receipts as a means for economic growth. However, assessing the potential impact of tourism on economic growth among large economies is still in its infancy. Design/methodology/approach Using a vector error correction model framework, this study examines the relationship among exports, gross domestic product (GDP) and tourism receipts (including international tourism receipts and domestic tourism receipts in two separate models) with macro data that covers two recent decades (1994-2013) in China. Findings The empirical findings confirm the existence of a long-term equilibrium relationship in each of these two tri-variate models. The empirical findings reveal that (1) both tourism-led-growth and export-led-growth hypotheses are supported, (2) the growth rate of tourism receipts exhibit a higher relevance with GDP growth than export growth and (3) the growth rate of international tourism shows a higher relevance with GDP growth than domestic tourism growth. Originality/value Using macroeconomic data collected by the Chinese government, the current study employs an advanced econometric methodology to explore the potential benefits of tourism on economic growth in China.

scholarly journals Fiscal policy responses for sustainable post-COVID-19 recovery: Taiwan's experience

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Yu-Ying Kuo
Keyword(s):  
Economic Growth ◽  
Growth Rate ◽  
Fiscal Policy ◽  
Cost Benefit ◽  
Secondary Data ◽  
Economic Growth Rate ◽  
Content Type ◽  
Policy Responses ◽  
Development Goals ◽  
Audit Reports

PurposeThis study examined Taiwan's fiscal policy responses for sustainable post-COVID-19 recovery. The costs and benefits, aligned with Sustainable Development Goals (SDGs), of fiscal policy responses were identified and valued. Although it may be too early to conclude whether the benefits outweigh the costs, the performance and outcome of fiscal measures were evaluated.Design/methodology/approachThe study relied on secondary data, including governmental official data, legislative reviews, audit reports and public opinion polls to understand objective and subjective benefits and costs in economic, social and environmental dimensions. However, while the costs were measured in monetary terms, some of the benefits (i.e. satisfaction) could not be monetized; therefore, this study focused on identifying and valuing benefits from fiscal measures but set aside the issues of monetizing and discounting.FindingsWith respect to the costs, a special budget of NT$840 billion was approved, of which 66.83% was allocated for economic development, 33.12% for social welfare and 0.05% for environmental protection. In terms of the benefits, the economic growth rate was forecasted to be 5.88% in 2021 and 3.69% in 2022, while the average economic growth rate was 2.77% during the period from 2012 to 2019. Social equity was emphasized as various and customized bailout packages were provided to impacted individuals and industries. Moreover, most citizens were confident in the government's efforts to combat the pandemic and stimulate recovery in Taiwan.Originality/valueThis paper comprehensively details Taiwan's experience of fiscal policy responses for sustainable post-COVID-19 recovery. The cost-benefit approach was conceptually adopted. Bearing the value of “build back better” and “rebuild better,” the benefits of fiscal measures are promising, although there are indebted costs of the special budget.

Tourism could be Japan's new economic growth engine

2015 ◽  
Keyword(s):  
Economic Growth ◽  
Middle Class ◽  
Growth Strategy ◽  
International Tourism ◽  
Structural Factors ◽  
Content Type ◽  
Travel Costs ◽  
Inbound Tourism ◽  
Mount Fuji

Subject Japan's tourism boom. Significance Depreciation of the yen has slashed travel costs for foreign visitors to Japan. However, there are longer-term structural factors driving Japan's boom in inbound tourism. Promoting the sector is integral to the Abe administration's growth strategy -- and it is the only part of the original 'third arrow' that is really on course to hit its target. Impacts The already-prosperous 'golden route' (Tokyo, Kyoto, Osaka, Nagoya and Mount Fuji) will benefit most from international tourism. However, as the industry develops and the number of repeat visitors grows, the range of tourist spots will expand. Shoppers from Asia's growing middle class are a key market, which will continue to grow.

scholarly journals Population growth and human resource utilization nexus in Nigeria

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Oluyemi Theophilus Adeosun ◽  
Oluwaseyi Omowunmi Popogbe
Keyword(s):  
Economic Growth ◽  
Growth Rate ◽  
Human Capital ◽  
Population Growth ◽  
Human Resource ◽  
Resource Utilization ◽  
Developing Economies ◽  
Sub Saharan Africa ◽  
Content Type ◽  
Long Run

Purpose Population growth has remained a key issue facing developing economies in the world. While developed countries are experiencing diminished or negative population growth, many countries in sub-Saharan Africa including Nigeria are having population growth above the economic growth rate. With the deadline for the sustainable development goals approaching, attention is increasingly being focused on population growth and human capital development. Extant literature focused on population growth, human resource utilization and economic growth but this study aims to examine the effect of population growth on human resource utilization. Design/methodology/approach Using secondary data for the period 1990-2018, the study conducted unit root test and co-integration analyses to determine the stationarity and correlation in the long-run in the variables. The study used the error correction model to ascertain the speed at which shocks can be corrected in the long-run. Granger causality test was also carried out to ascertain the direction of causality among the variables. Findings The empirical results revealed that population growth has a negative and significant effect on human resource utilization. The study also revealed that unidirectional causality runs from employment rate to population growth rate and a unidirectional causality runs from employment growth rate to expected years of schooling. The Nigerian Government needs to not only control population growth but also focus on the quality of education. Originality/value The paper provides insights into the relationship between population growth and human capital utilization in Nigeria focusing on the 1986-2018 period.

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