Democracy and Macroeconomic Performance in Underdeveloped Countries

In this study, the author examines how inflation and economic growth differ in more- and less-democratic regimes and in new and mature democracies. The analysis is based on a panel research design featuring annual data from a large sample of underdeveloped countries and two-way, fixed-effects regression analysis. The author's central finding is that more-democratic countries have higher inflation and slower growth than less-democratic countries. Inflation apparently is higher than more-democratic countries mainly because they have higher fiscal deficits and faster wage growth; this higher inflation marginally reduces economic growth in these countries. The author also finds that new and mature democracies do not have significantly different inflation and growth rates. The findings suggest that unrestrained political participation and the resulting demands placed on state officials undermine democratic performance.

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Do Carbon Prices Limit Economic Growth?

Socius Sociological Research for a Dynamic World ◽

10.1177/2378023119898326 ◽

2020 ◽

Vol 6 ◽

pp. 237802311989832

Author(s):

Daniel Driscoll

Keyword(s):

Economic Growth ◽

Regression Analysis ◽

Fixed Effects ◽

Policy Design ◽

Negative Impact ◽

Carbon Price ◽

General Nature ◽

Per Capita ◽

Fixed Effects Regression ◽

Carbon Prices

The most common counterargument to taxing carbon emissions is that the policy has a negative impact on economic growth. The author tests the validity of this argument by visualizing the enactment of carbon prices on gross domestic product per capita from 1979 to 2018 and presenting a formal fixed-effects regression analysis of panel data. No connection is found between carbon price implementation and diminished economic growth. This outcome is primarily due to policy design and the general nature of economic growth. The author concludes that this counterargument to enacting carbon prices exists only because of misunderstandings of economic growth and ideology.

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Psychosocial job quality and mental health among young workers: a fixed-effects regression analysis using 13 waves of annual data

Scandinavian Journal of Work Environment & Health ◽

10.5271/sjweh.3608 ◽

2016 ◽

Vol 43 (1) ◽

pp. 50-58 ◽

Cited By ~ 7

Author(s):

Allison Milner ◽

Lauren Krnjack ◽

Anthony D LaMontagne

Keyword(s):

Mental Health ◽

Regression Analysis ◽

Fixed Effects ◽

Job Quality ◽

Annual Data ◽

Young Workers ◽

Fixed Effects Regression

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Brain drain and economic growth: evidence of productivity growth from brain circulation

European Journal of Government and Economics ◽

10.17979/ejge.2021.10.2.7831 ◽

2021 ◽

Vol 10 (2) ◽

pp. 128-145

Author(s):

Woosik Yu

Keyword(s):

Economic Growth ◽

Brain Drain ◽

Productivity Growth ◽

Fixed Effects ◽

Positive Impact ◽

Brain Circulation ◽

Middle Income ◽

Positive Effects ◽

Fixed Effects Regression ◽

The Brain

This paper analyzes the effect of the so-called ‘brain drain’ on economic growth through the channel of growth in total factor productivity. We analyze panel data that measure the severity of brain drain, which are from IMD and the U.S. National Science Foundation. Our analysis shows that middle-income countries have more brain drain compared to the group of high-income countries. Also, emerging economies that grow fast tend to experience more brain drain. Our results from fixed effects regression models show that that brain drain has a significant and positive impact on economic growth, and the main channel is productivity growth. This can be considered as evidence of the positive effects of ‘brain circulation’, which is one of the brain drain phenomena that settlement of the talents in advanced countries can eventually help improve the productivity of home country by the sharing of advanced technologies and skills around them with colleagues in motherland. Therefore, a strategy of utilizing overseas resident talents should also be considered, alongside the brain-attraction policy.

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Unemployment and psychosocial outcomes to age 30: A fixed-effects regression analysis

Australian & New Zealand Journal of Psychiatry ◽

10.1177/0004867414525840 ◽

2014 ◽

Vol 48 (8) ◽

pp. 735-742 ◽

Cited By ~ 27

Author(s):

David M Fergusson ◽

Geraldine F McLeod ◽

L John Horwood

Keyword(s):

Regression Analysis ◽

Fixed Effects ◽

Psychosocial Outcomes ◽

Fixed Effects Regression

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Impact of Tourism Industry on the Economic Growth of Sri Lanka

International Journal of Accounting and Financial Reporting ◽

10.5296/ijafr.v10i4.15991 ◽

2020 ◽

Vol 10 (4) ◽

pp. 60

Author(s):

S. Anandasayanan ◽

S. Balagobei ◽

M. Amaresh

Keyword(s):

Economic Growth ◽

Regression Analysis ◽

Sri Lanka ◽

Foreign Currency ◽

Unit Root Test ◽

Tourism Industry ◽

Annual Data ◽

Tourism Sector ◽

Independent Variable ◽

The Impact

In Sri Lanka, tourism has been identified as the third largest and fastest growing source of foreign currency in 2018, after private remittances and textile and garment exports, accounting for almost $4.4 billion or 4.9 percent of gross domestic product in 2018. Tourism industry is a key element which accelerates the economic growth by earning high foreign exchange and reducing poverty by providing direct and indirect employment opportunities to locals. This study primarily investigates the impact of between tourism sector on economic growth by employing Augmented Dickey Fuller’s unit root test, correlation analysis and regression analysis. Annual data from 1989 to 2018 was used. The dependent variable was economic growth while tourists’ receipts were independent variable. Strong and positive correlation was explored between tourists’ receipts and economic growth meanwhile the results of regression analysis indicate that tourists’ receipts significantly impact on the economic growth.

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Earnings and cash flow persistence: Case of medium agriculture enterprises in Serbia

Ekonomika poljoprivrede ◽

10.5937/ekopolj2101141s ◽

2021 ◽

Vol 68 (1) ◽

pp. 141-153

Author(s):

Slavica Stevanović ◽

Jelena Minović ◽

Grozdana Marinković

Keyword(s):

Economic Growth ◽

Regression Analysis ◽

Cash Flow ◽

National Economy ◽

Earnings Quality ◽

Cash Flows ◽

Annual Data ◽

Panel Regression ◽

Operating Profit ◽

Operating Cash Flows

This paper examines the earnings and cash flow persistence of selected agriculture Serbian enterprises as a measure of their earnings quality. We study the persistence of income statements and cash flow statement items of medium-sized agriculture enterprises in Serbia. Agriculture is a relevant sector for the national economy and medium-sized enterprises are the main drivers of her economic growth. We use panel regression analysis with annual data over the period from 2010 to 2018. The results of our research indicate that earnings and cash flow-based indicators have different persistence. Analysing accruals and net cash flows of operating activities as determinants of operating profit of analysed enterprises, we conclude that operating profit that represents accruals are more persistent than operating profit backed by net operating cash flows.

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Determinants of Profitability in the Banking Sector: An Analysis of Post-Soviet Countries

Economies ◽

10.3390/economies6030041 ◽

2018 ◽

Vol 6 (3) ◽

pp. 41 ◽

Cited By ~ 23

Author(s):

Serhat Yüksel ◽

Shahriyar Mukhtarov ◽

Elvin Mammadov ◽

Mustafa Özsarı

Keyword(s):

Economic Growth ◽

Financial Performance ◽

Credit Card ◽

Fixed Effects ◽

Banking Sector ◽

Generalized Method Of Moments ◽

Negative Relationship ◽

Annual Data ◽

Bank Profitability ◽

Interest Income

The purpose of this paper is to identify the determinants of bank profitability in 13 post-Soviet countries. Within this scope, annual data between 1996 and 2016 is analyzed by using fixed effects panel regression and the Generalized Method of Moments (GMM). It is concluded that loan amount, non-interest income and economic growth are significant indicators of profitability. Moreover, the 2008 global mortgage crisis has a negative influence on bank profitability in post-Soviet countries. According to the estimation results, there is a positive relationship between non-interest income and economic growth with profitability. This result shows that when non-interest income of the banks increases, such as credit card fees and commission, it affects the financial performance of the banks, positively, and contributes to bank profitability. Another result of this study is that economic growth positively influences bank profitability. This result allows us to conclude that higher GDP comes with higher bank profitability for post-Soviet countries. Lastly, there is a negative relationship between loan-to-GDP ratio and profitability of the banks in post-Soviet countries. This means that when the ratio of total loans to GDP increases, it affects financial performance of the banks in a negative way. While considering this result, it is recommended that banks in post-Soviet countries should focus on ways to increase their non-interest income. Additionally, it is also significant for these banks to be careful and risk averse when lending to their customers.

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The Effect of Exchange Rate Volatility on Economic Growth: Case of the CEE Countries

Journal of Risk and Financial Management ◽

10.3390/jrfm13080177 ◽

2020 ◽

Vol 13 (8) ◽

pp. 177

Author(s):

Fatbardha Morina ◽

Eglantina Hysa ◽

Uğur Ergün ◽

Mirela Panait ◽

Marian Catalin Voica

Keyword(s):

Economic Growth ◽

International Trade ◽

Exchange Rate ◽

Fixed Effects ◽

Exchange Rate Volatility ◽

Real Effective Exchange Rate ◽

Annual Data ◽

Real Economy ◽

The Exchange Rate ◽

The Impact

The exchange rate is a key macroeconomic factor that affects international trade and the real economy of each country. The development of international trade creates conditions where volatility comes with the exchange rate. The purpose of this paper is to examine the effect of real effective exchange rate volatility on economic growth in the Central and Eastern European countries. Additionally, the effect, through three channels of influence on economic growth which vary on the measurement of exchange rate volatility, is examined. The study uses annual data for fourteen CEE countries for the period 2002–2018 to examine the nature and extends the impact of such movements on growth. The empirical findings using the fixed effects estimation for panel data reveal that the volatility of the exchange rate has a significant negative effect on real economic growth. The results appear robust with alternative measures of exchange rate volatility such as standard deviation and z-score. This paper suggests that policymakers should adopt different policies to keep the exchange rate stable in order to foster economic growth.

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