Does Corruption Facilitate Growth? A Cross-national Study in a Non-linear Framework

2017 ◽  
Vol 6 (2) ◽  
pp. 178-193
Author(s):  
Shrabani Saha ◽  
Girijasankar Mallik ◽  
Dimitrios Vortelinos
Keyword(s):  
Fixed Effects ◽  
Jel Classification ◽  
National Study ◽  
Alternative Measure ◽  
Linear Framework ◽  
Non Linear ◽  
Generalized Methods Of Moments ◽  
Panel Fixed Effects ◽  
Cross National Study ◽  
Methods Of Moments

The article examines the corruption–growth relationship in a non-linear framework using panel fixed effects (FE) and system generalized methods of moments (SGMM) model for over 110 countries for the period 1984–2009. The results reveal that the least corrupt countries enjoy higher growth rates, whereas highly corrupt countries experience low growth. Furthermore, corruption has a positive and significant effect on economic growth up to a certain level and thereafter it reduces growth. The results are robust under various methodology and an alternative measure of corruption. JEL Classification: D73, O47, O50

Market differences and adjustment speed of debt, equity, and debt maturity

2020 ◽  
pp. 031289622096826
Author(s):  
Hasan Tekin
Keyword(s):  
Global Financial Crisis ◽  
Jel Classification ◽  
Debt Maturity ◽  
The United Kingdom ◽  
Adjustment Speed ◽  
Generalized Methods Of Moments ◽  
Trade Credits ◽  
The Global Financial Crisis ◽  
Methods Of Moments

This article investigates the role of market differences and the global financial crisis 2007–2009 (GFC) on the adjustment speed of debt issuance, equity issuance, and debt maturity. The sample of 9731 firm-years from highly regulated Main Market (MAIN) and slightly unregulated Alternative Investment Market (AIM) in the United Kingdom was used. Employing system generalized methods of moments, the findings show that AIM firms have a faster adjustment speed of debt and equity before the GFC than MAIN firms. However, it is vice versa after the GFC because AIM firms face greater problems in accessing finance due to the shrinkage of bank credits during the recession. Besides, MAIN firms have faster adjustments on long-term debt over the time, whereas AIM firms have faster adjustment speed of trade credits. Overall, investors should consider market differences and recessions to take accurate decisions on debt-equity and debt maturity to invest where and when. JEL Classification: C26, G01, G32

scholarly journals Effect of the Utilization of Non-Reciprocal Trade Preferences offered by the QUAD on Economic Complexity in Beneficiary Countries

2021 ◽  
Author(s):  
Sèna Kimm GNANGNON
Keyword(s):  
Jel Classification ◽  
Development Aid ◽  
Product Diversification ◽  
Economic Complexity ◽  
Generalized System ◽  
Generalized System Of Preferences ◽  
Generalized Methods Of Moments ◽  
Trade Preferences ◽  
Methods Of Moments ◽  
Positive Effect

Abstract This article aims to contribute to the nascent literature on the effect of non-reciprocal trade preferences (NRTPs) on industrialization in beneficiary countries. In so doing, it complements the few existing works on the effect of NRTPs on export product diversification by investigating the effect of NRTPs (both the Generalized System of Preferences- GSP programs- and other non-reciprocal trade preferences) offered by the QUAD countries on the level of economic complexity in beneficiary countries. The analysis has relied on 110 beneficiary countries of these NRTPs over the period 2002–2018, and made primarily use of the two-step system Generalized Methods of Moments estimator. The findings are quite interesting. First, beneficiary countries tend to use GSP programs (rather than other trade preferences) to achieve greater economic complexity, and the positive effect of the utilization of GSP programs on economic complexity is higher for high income beneficiary countries than relatively less advanced beneficiary countries. Second, both GSP programs and other non-reciprocal trade preferences are strongly complementary in promoting economic complexity in beneficiary countries, in particular if their usage reach high levels. Third, the utilization of NRTPs enhances economic complexity in countries that receive high foreign direct investment flows. Finally, development aid flows are strongly complementary with the utilization of NRTPs in fostering economic complexity in beneficiary countries, especially for high amounts of development aid. This suggests the need for preference-granting countries (that are also suppliers of development aid) to offer both generous NRTPs and higher development aid flows if those NRTPs are to be effective in expanding the manufacturing base in the beneficiary countries.Jel Classification: F13; F14; O14.

Empirical Regularities of Inflation Volatility: Evidence from Advanced and Developing Countries

2017 ◽  
Vol 6 (1) ◽  
pp. 133-156
Author(s):  
Shesadri Banerjee
Keyword(s):  
Developing Countries ◽  
Developing Economies ◽  
Research Question ◽  
Jel Classification ◽  
Price Inflation ◽  
Country Level ◽  
Long Run ◽  
Generalized Methods Of Moments ◽  
Empirical Regularities ◽  
Methods Of Moments

How does volatility of inflation differ across the economies? Addressing this research question, the article undertakes an empirical exercise on monthly consumer price inflation over the sample period of M01, 1958 to M02, 2016 for 41 countries using the generalized autoregressive conditional heteroscedasticity (GARCH) (1, 1) model. The country-level analysis shows a modest difference of conditional volatility of inflation between the advanced and developing economies. However, this difference increases after controlling the country-specific traits by fixed effect panel estimation using generalized methods of moments on the estimated GARCH series. It is observed that, in the long run, the conditional variability of inflation is nearly three and half times greater in developing countries compared to advanced countries. JEL Classification: E10, E30, E31

scholarly journals Drought and Property Prices: Empirical Evidence from Provinces of Iran

2020 ◽  
Author(s):  
Mohammad Reza Farzanegan ◽  
Mehdi Feizi ◽  
Hassan F. Gholipour
Keyword(s):  
Panel Data ◽  
Dynamic System ◽  
Fixed Effects ◽  
Time Trend ◽  
Land Prices ◽  
Property Prices ◽  
Generalized Methods Of Moments ◽  
The Difference ◽  
Methods Of Moments ◽  
Positive Effect

AbstractThis study examines the effect of drought on housing and residential land prices in Iran. Using panel data covering the 2006–2015 period for 31 provinces of Iran and applying a dynamic system and the difference Generalized Methods of Moments (GMM) methods, we find that an increase in the balance of water (reducing the severity of drought) within provinces has a positive effect on property prices. Our results are robust, controlling for province fixed effects, time trend, and a set of control variables that may affect property prices.

scholarly journals Determinants and convergence of income diversification in Ghanaian banks

2020 ◽  
Vol 2 (2) ◽  
pp. 34-47 ◽  
Author(s):  
King Carl Tornam Duho ◽  
Joseph Mensah Onumah ◽  
Emmanuel Tetteh Asare
Keyword(s):  
Credit Risk ◽  
Fixed Effects ◽  
Ordinary Least Squares ◽  
Future Research ◽  
Diversification Strategy ◽  
Income Diversification ◽  
Sigma Convergence ◽  
Generalized Methods Of Moments ◽  
Methods Of Moments ◽  
Beta Convergence

The study explores the determinants of income diversification, as well as, test for the existence of beta-convergence and sigma-convergence among Ghanaian banks. The study utilizes a dataset of 32 banks covering the periods 2000 to 2017. The panel corrected standard error ordinary least squares, fixed effects and system generalized methods of moments have been used. Both beta-convergence and sigma-convergence exist among Ghanaian banks; suggesting the presence of the catch-up effect and similarity of strategy over time. The risk profile and risk portfolio of banks affect their diversification strategy. Banks that are faced with high insolvency risk and liquidity risk tend to diversify while banks that are faced with low credit risk tend to diversify. Stable banks tend to adopt a diversification strategy even when they are exposed to credit risk. Network embeddedness drives diversification strategy. The implications of the study for practice, policy, and future research have been discussed.

scholarly journals Do people adapt to climate change? Evidence from the industrialized countries

2019 ◽  
Vol 11 (1) ◽  
pp. 54-71 ◽  
Author(s):  
Marko Korhonen ◽  
Suvi Kangasraasio ◽  
Rauli Svento
Keyword(s):  
Climate Change ◽  
Fixed Effects ◽  
Extreme Temperature ◽  
Mortality Rates ◽  
Adaptation Effect ◽  
Fixed Effects Model ◽  
Content Type ◽  
Temperature Changes ◽  
Non Linear ◽  
Panel Fixed Effects

PurposeThis study aims to explore the link between mortality and climate change. The focus is in particular on individuals’ adaptation to temperature changes. The authors analyze the relationship between climatic change (measured by temperature rate) and mortality in 23 Organisation for Economic Co-operation and Development countries during 1970-2010.Design/methodology/approachThis study performs the adaptation regression model in the level form as a dynamic panel fixed effects model. The authors use a non-linear threshold estimation approach to examine the extreme temperature changes effect on the temperature–mortality relation. More specifically, the study explores whether the large increases/decreases in temperature rates affect mortality rates more than the modest changes.FindingsThis study indicates that the temperature–mortality relation is significant in early part of the sample period (before 1990) but insignificant during the second part (after 1990). After including controlling factors, as well as nation and year fixed effects, the authors provide evidence that people do adapt to the most of the temperature-related mortalities. Also, this study provides evidence of the non-linear relationship between national temperatures and mortality rates. It is observed that only after 5 per cent increase in the annual temperature, the relation between temperature and overall mortality is significant.Originality/valueMost studies cover only one specific country, hence making it difficult to generalize across countries. Therefore, the authors argue that the best estimation of the health effects of temperature change can be found by modeling the past relationships between temperature and mortality across countries for a relatively long period. To the authors’ knowledge, previous studies have not systemically tested the adaptation effect across countries.

A Cross-National Study of Perceived Risk

1978 ◽  
Vol 42 (3) ◽  
pp. 102-108 ◽  
Author(s):  
Robert J. Hoover ◽  
Robert T. Green ◽  
Joel Saegert
Keyword(s):  
Perceived Risk ◽  
National Study ◽  
Cross National Study ◽  
Cross National

Social workers as state and citizen-agents. How social workers in a German, Dutch and Flemish public welfare organisation manage this dual responsibility in practice

2021 ◽  
pp. 146801732110097
Author(s):  
Michelle van der Tier ◽  
Koen Hermans ◽  
Marianne Potting
Keyword(s):  
Social Workers ◽  
Public Welfare ◽  
National Study ◽  
Front Line ◽  
Line Managers ◽  
Daily Work ◽  
Line Manager ◽  
Cross National Study ◽  
The Relationship

Summary Professional standards state that social workers in public welfare organisations should act as state and citizen-agents. However, the literature provides little insight into how social workers navigate this dual responsibility in their daily work. To address this gap, we used Maynard-Moody and Musheno’s theory on state and citizens-agent narratives to analyse street-level practices of social workers in three local welfare organisations in Germany, the Netherlands and Belgium. This article explores how three specific organisational mechanisms (decision-making authority; the role of the front-line manager and the degree of specialisation) affect the ways social workers navigate both agent narratives in public welfare organisations. The data were gathered by a mixed method design of in-depth interviews and focus groups. Findings Our study shows that social workers struggle with the tensions that intrude between the state and citizen-agent narrative. We found that the extent to which both narratives are adopted by social workers is affected by a complicated interaction between the beliefs of social workers about social justice and responsiveness and the selected organisational mechanisms. Moreover, we found that critical reflection and a supportive attitude of front-line managers can help social workers to manage their double responsibility in practice. Application Our cross-national study contributes to a deeper understanding of the relationship between organisational mechanisms and the moral deliberations of social workers regarding their dual responsibility. It provides in-depth insights into the tensions and conflicts social workers in different contexts face daily on account of their dual responsibility.

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