scholarly journals OPTIMAL INCENTIVES FOR ECONOMIC GROWTH IN CENTRAL EUROPEAN COUNTRIES: A MICRO APPROACH

2021 ◽  
Vol 10 (3) ◽  
pp. 9-31
Author(s):  
Mustafa Akan ◽  
Natalia Konovalova
Keyword(s):  
Economic Growth ◽  
Financial Crisis ◽  
Interest Rates ◽  
Negative Impact ◽  
Point Of View ◽  
European Countries ◽  
Central European ◽  
Specific Objective ◽  
Financial Crisis Of 2008 ◽  
Optimal Incentives

Financial crisis of 2008 and the ongoing pandemic are continuing to have a negative impact on the economies of all countries even tough interest rates have been decreased significantly. This paper attempted to view the problem from a micro point of view to suggest more effective incentives for growth. The specific objective of the study is to determine and examine the effects of these incentives on economic growth in Central European countries.

scholarly journals Revisiting the Environmental Kuznets Curve Hypothesis: A Case of Central Europe

Energies ◽  
2021 ◽  
Vol 14 (12) ◽  
pp. 3415
Author(s):  
Bartosz Jóźwik ◽  
Antonina-Victoria Gavryshkiv ◽  
Phouphet Kyophilavong ◽  
Lech Euzebiusz Gruszecki
Keyword(s):  
Economic Growth ◽  
Co2 Emissions ◽  
Central Europe ◽  
Environmental Kuznets Curve ◽  
European Countries ◽  
Kuznets Curve ◽  
The European Union ◽  
Ekc Hypothesis ◽  
Central European ◽  
Long Run

The rapid economic growth observed in Central European countries in the last thirty years has been the result of profound political changes and economic liberalization. This growth is partly connected with reducing carbon dioxide (CO2) emissions. However, the problem of CO2 emissions seems to remain unresolved. The aim of this paper is to test whether the Environmental Kuznets Curve (EKC) hypothesis holds true for Central European countries in an annual sample data that covers 1995–2016 in most countries. We examine cointegration by applying the Autoregressive Distributed Lag bound testing. This is the first study examining the relationship between CO2 emissions and economic growth in individual Central European countries from a long-run perspective, which allows the results to be compared. We confirmed the cointegration, but our estimates confirmed the EKC hypothesis only in Poland. It should also be noted that in all nine countries, energy consumption leads to increased CO2 emissions. The long-run elasticity ranges between 1.5 in Bulgaria and 2.0 in Croatia. We observed exceptionally low long-run elasticity in Estonia (0.49). Our findings suggest that to solve the environmental degradation problem in Central Europe, it is necessary to individualize the policies implemented in the European Union.

Relationship between Budget Deficit and Economic Growth: Evidence from Ethiopia

2021 ◽  
Vol 2 (2) ◽  
pp. 10-15
Author(s):  
Desalegn Emana
Keyword(s):  
Economic Growth ◽  
Interest Rates ◽  
Budget Deficit ◽  
Time Series Data ◽  
Negative Impact ◽  
Positive Impact ◽  
Negative Relationship ◽  
Nominal Exchange Rate ◽  
Series Data ◽  
Long Run

This study examined the relationship between budget deficit and economic growth in Ethiopia using time series data for the period 1991 to 2019 by applying the ARDL bounds testing approach. The empirical results indicate that budget deficit and economic growth in Ethiopia have a negative relationship in the long run, and have a weak positive association in the short run. In line with this, in the long run, a one percent increase in the budget deficit causes a 1.43 percent decline in the economic growth of the country. This result is consistent with the neoclassical view which says budget deficits are bad for economic growth during stimulating periods. Moreover, in the long run, the variables trade openness and inflation have a positive impact on Ethiopian economic growth, and on the other hand, the economic growth of Ethiopia is negatively affected by the nominal exchange rate in the long run. Apart from this, in the long run, gross capital formation and lending interest rates have no significant impact on the economic growth of the country. Therefore, the study recommends the government should manage its expenditure and mobilize the resources to generate more revenue to address the negative impact of the budget deficit on economic growth.

The Impact of Corruption on Economic Growth

2020 ◽  
pp. 266-290
Author(s):  
Noha A. Farrag ◽  
Asmaa M. Ezzat
Keyword(s):  
Economic Growth ◽  
Empirical Evidence ◽  
Random Effects ◽  
Negative Impact ◽  
European Countries ◽  
Random Effects Model ◽  
Mena Countries ◽  
The Impact

Even though corruption is correlated to political and moral degradation, there is no consensus on the impact of corruption on economic growth. Although, theory leans to the view that corruption has negative impact on growth, still empirical evidence and counter arguments show that there might be positive implications for corruption. This paper compares the corruption impact on growth in 17 developed European countries vs. 15 developing MENA countries using a pooled OLS model and a random effects model for the period (1999-2012). This paper contributes to the literature by examining the impact of corruption on growth in scarcely examined countries in Europe and MENA. Also, the paper findings are intriguing because they show that the region, as a proxy to degree of development, significantly influences the effect of corruption on economic growth.

The Impact of Corruption on Economic Growth

2016 ◽  
pp. 74-97 ◽  
Author(s):  
Noha A. Farrag ◽  
Asmaa M. Ezzat
Keyword(s):  
Economic Growth ◽  
Empirical Evidence ◽  
Random Effects ◽  
Negative Impact ◽  
European Countries ◽  
Random Effects Model ◽  
Mena Countries ◽  
The Impact

Even though corruption is correlated to political and moral degradation, there is no consensus on the impact of corruption on economic growth. Although, theory leans to the view that corruption has negative impact on growth, still empirical evidence and counter arguments show that there might be positive implications for corruption. This paper compares the corruption impact on growth in 17 developed European countries vs. 15 developing MENA countries using a pooled OLS model and a random effects model for the period (1999-2012). This paper contributes to the literature by examining the impact of corruption on growth in scarcely examined countries in Europe and MENA. Also, the paper findings are intriguing because they show that the region, as a proxy to degree of development, significantly influences the effect of corruption on economic growth.

scholarly journals Identification of Environmentally Friendly Alternative for Laundry Detergent Packaging

2021 ◽  
Vol 25 (3) ◽  
pp. 101-119
Author(s):  
Pavol Palfy ◽  
Barbora Marenčíková
Keyword(s):  
Environmental Impact ◽  
Decision Process ◽  
Negative Impact ◽  
Laundry Detergent ◽  
Point Of View ◽  
Lca Methodology ◽  
Inventory Analysis ◽  
Liquid Detergent ◽  
Central European ◽  
Central European Region

Purpose: The objective of the study was to analyse and evaluate two alternative liquid detergent packaging systems from the point of view of their overall environmental impact. Using the LCA method, we have come to the conclusion that cardboard packaging is an alternative with a lower negative impact on the environment than an HDPE bottle.         Methodology/Approach: The study is based on the LCA method implemented through the software openLCA, including available databases. Findings: The environmentally friendlier alternative of the detergent packaging is identified. The decisions about individual stages during LCA must be made with caution and well documented to ensure credibility of the results. Research Limitation/Implication: The findings of the presented study are limited by the available data used for the environmental impact assessment. The inventory analysis was performed for the conditions of the central European region. Originality/Value of paper: This study applies LCA methodology to present the details of a decision process involved in selecting better environmental alternative of the product. The information generated by the study is directly applicable in the industry.

scholarly journals Impact of Monetary Policy on Economic Growth: Empirical Evidence in Vietnam

2019 ◽  
Vol 5 (10) ◽  
Author(s):  
Tang My Sang
Keyword(s):  
Economic Growth ◽  
Monetary Policy ◽  
Interest Rates ◽  
Empirical Evidence ◽  
Money Supply ◽  
Negative Impact ◽  
Positive Impact ◽  
Secondary Data ◽  
The Impact

Through the secondary data collected from 2009 to 2018, the research used Var method to test the impact of monetary policy on economic growth in Vietnam. The results show that there is a relationship between the variables of monetary policy and economic growth, in which the money supply has a positive impact at a high significant level, interest rates have a negative impact on Vietnam economic growth. From the results obtained, the research proposed solutions for operating monetary policy.

scholarly journals THE ROLE OF FISCAL STIMULUS AND MONETARY EASING IN INDONESIAN ECONOMY DURING GLOBAL FINANCIAL CRISIS: FINANCIAL COMPUTABLE GENERAL EQUILIBRIUM APPROACH

2010 ◽  
Vol 13 (2) ◽  
pp. 165-186 ◽  
Author(s):  
Iskandar Simorangkir ◽  
Justina Adamanti
Keyword(s):  
Economic Growth ◽  
Financial Crisis ◽  
General Equilibrium ◽  
Interest Rates ◽  
Computable General Equilibrium ◽  
Global Financial Crisis ◽  
Aggregate Demand ◽  
Fiscal Stimulus ◽  
Monetary Expansion ◽  
Positive Effects

Global financial crisis started in mid 2008 has reduced global economic growth, and many countries even experienced economic contraction. To deal with economic contraction, various economic policies have been undertaken. Governments have increased fiscal stimulus through increasing expenditure and lowering tax while central banks have cut policy rates substantially. In some countries interest rates even reach zero or close to zero. Similar to many other countries, Indonesia has also undertaken expansionary policies, namely increasing fiscal stimulus and lowering interest rates.This paper examines the impacts of fiscal stimulus and interest rate cut on Indonesian economy using financial computable general equilibrium (FCGE) approach. The estimation results show a number of findings. First, the combination of fiscal expansion and monetary expansion boosts economic growth of Indonesia effectively. Relative to the effectiveness of fiscal expansion without monetary policy expansion or monetary expansion without fiscal expansion, the combination of those two policies is more effective.Second, looking into the components of GDP, the combination of fiscal and monetary expansion has a large multiplier effect, boosting aggregate demand through increasing consumption, investment, government expenditure, exports and imports. Meanwhile, from production side, the combination of fiscal and monetary expansion has positive effects on increasing production of all economic sectors. This effect comes from fiscal incentive (lower tax, lower import duties, etc) in increasing investment. Moreover, the increase in aggregate demand also encourages enterprises to increase their production.Third, institutionally fiscal stimulus and monetary easing has increased income and purchasing power of the poor and rich households in rural and urban area. This increase in turn results in higher all household consumption.JEL Classification: D58, E12, E13, E52, E58, H25, H31, H53, H54Keywords: Fiscal stimulus, monetary easing, financial computable general equilibrium, global financial crisis.

scholarly journals Sector Portfolio Performance Comparison between Islamic and Conventional Stock Markets

2019 ◽  
Vol 11 (17) ◽  
pp. 4618
Author(s):  
María de la O González ◽  
Francisco Jareño ◽  
Camalea El Haddouti
Keyword(s):  
Financial Crisis ◽  
Interest Rates ◽  
Performance Measures ◽  
Stock Markets ◽  
Global Financial Crisis ◽  
Negative Impact ◽  
Performance Comparison ◽  
Portfolio Performance ◽  
Sample Period ◽  
Performance Results

This study compares the performance of sector portfolios from Islamic and conventional stock markets, using standard as well as current performance measures for a recent sample period between January 1996 and December 2015. Furthermore, to test the robustness of our analysis and to determine which type of portfolios offer better performance depending on the economic cycle, the full sample period is divided into three sub-sample periods: Before, during and after the recent global financial crisis. The three main outcomes of this research confirm that, first, the sector with the best performance results is Health Care, while the sector with the worst performance results is Financials for the Islamic as well as the conventional stock market. Second, the post-crisis sub-period exhibits the best performance not only in conventional but also in Islamic markets, confirming that portfolio performance depends on the economic stage and highlighting emerging signs of economic recovery. Third, Islamic sector portfolios, as a whole, show better performance than conventional sector portfolios for all performance measures—not just for the full period but also for the three sub-sample periods. The superior risk-adjusted returns of the Islamic sector portfolios, even during the recent global financial crisis, can be justified, among other reasons, by the moderated uncertainty and speculation, as well as the fact that Islamic finance prevents interest rates that have a negative impact on the economy. Thus, Sharia-compliant assets can contribute to improving the sustainability of unattractive performance portfolios during financial crises.

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