scholarly journals Financial System and Agricultural Growth in Ukraine

Organizacija ◽  
2017 ◽  
Vol 50 (3) ◽  
pp. 244-253 ◽  
Author(s):  
Olena Oliynyk-Dunn
Keyword(s):  
Financial Development ◽  
Regression Models ◽  
Financial System ◽  
Value Added ◽  
Output Growth ◽  
Economic Activities ◽  
Agricultural Growth ◽  
Bank Deposits ◽  
Methodological Approaches ◽  
Integrated Indicators

Abstract Background/Purpose: An effective financial system should increase the efficiency of economic activities. This study provides evidence regarding the importance of financial development for agricultural growth in Ukraine. Methodology: We used non-integrated and integral indicators, time series and regression analysis to investigate the link between the financial development and agricultural growth. Results: The results based on integral indicators shows that the financial development does not affect agricultural growth in Ukraine. The study based on non-integrated indicators, which characterizes various aspects of the financial system’s banking component and agricultural growth, provided a significant link between the financial system and agriculture growth. The regression models revealed if bank deposits to GDP (%) increases the value added per worker in agriculture increases exponentially. The results of the study indicate that, agriculture is more sensitive to lending changes than the vast majority of other sectors of the economy. The increasing lending of one UAH (Ukrainian hryvnia) resulted in retail turnover growth of 1.62 UAH, while agricultural gross output, growth was UAH 5.06. Conclusion: Our results reveal a positive relationship between financial system’s banking component and agriculture growth in Ukraine. The results indicate the necessity for continued research into further developing universal methodological approaches of appraising the nexus of the financial system’s banking component on agriculture growth in general as well separate farm groups. The results of our study has important implications on policy making authorities efforts to stimulate agricultural growth by improving the efficiency of the financial system’s banking component.

The relationship between financial development and effectiveness of monetary policy: new evidence from ASEAN-3 countries

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Zulkefly Abdul Karim ◽  
Danie Eirieswanty Kamal Basa ◽  
Bakri Abdul Karim
Keyword(s):  
Monetary Policy ◽  
Money Supply ◽  
Financial Development ◽  
Open Economy ◽  
Banking Sector ◽  
Financial System ◽  
The Philippines ◽  
Output Growth ◽  
Content Type ◽  
The Relationship

Purpose This paper aims to investigate the relationship between financial development (FD) and monetary policy effectiveness (MPE) on output and inflation in ASEAN-3 countries (Singapore, Malaysia and the Philippines). Design/methodology/approach This study uses an open economy structural vector autoregressive model to generate MPE. Then, an autoregressive distributed lagged (ARDL) model is used to analyze the effect of FD on MPE across countries. Findings The findings revealed that FD plays a different role in MPE across countries. In Malaysia, a more developed financial system tends to reduce the MPE on output, whereas in Singapore, results show that the more developed financial system (stock market capitalization) tends to increase MPE on output. However, in the Philippines, the main results show that the effect of FD (liquid liabilities) upon MPE on output is depending on the policy variable (interest rates or money supply). Originality/value This paper fills this gap by providing the first study of ASEAN-3 countries in examining how effective is a monetary policy in response to the development of the financial market across the country. Second, this paper considers two FD indicators, namely, the banking sector and capital market development in investigating its effect on MPE on output and inflation. Third, the authors construct the MPE in each country using a structural (identified) VAR model by aggregating the response of output growth and inflation rate on monetary policy changes (interest rate and money supply) using impulse–response function. Regarding this, the results of this study provide new empirical evidence and insight into the long debate on the relationship between FD and the MPE.

scholarly journals Does Household Tax Burden Have an Impact on Individuals’ Savings in Banks? The Case of Ukraine

2021 ◽  
Vol 8 (55) ◽  
pp. 378-389
Author(s):  
Gennadiy Sudak ◽  
Savchenko Yuliia
Keyword(s):  
Value Added ◽  
Income Taxes ◽  
Income Taxation ◽  
Tax Burden ◽  
Tax Rates ◽  
Bank Deposits ◽  
Methodological Approaches ◽  
The Difference ◽  
The Impact ◽  
Progressive Income Taxation

Abstract This paper aims to assess the impact of the effective and nominal household tax burden on household deposits in Ukrainian banks. We used the effective tax burden, which includes personal income taxes and value-added tax (VAT) paid. We considered changes in Ukrainian tax law from 2003 to 2016, which included a change from progressive income taxation to proportional income taxation, a decrease in tax rates in 2003, and an increase in tax rates in 2014–2016. The data sample consists of publicly available data on Ukrainian households’ income, savings, and taxes paid in 1996–2019. The analysis was performed using panel regression and the difference-in-difference (DID) method. The tax burden impact on bank deposits is significant and is caused partly by the shadow economy. The results of the study are relevant for Ukraine and countries with similar economies. The methodological approaches developed in the paper can be used for similar studies in other developing countries.

scholarly journals Slow Growth and Sluggish Manufacturing in Indonesia’s Less Competitive Provinces: A Geweke Causality Analysis

2018 ◽  
Vol 4 (2) ◽  
pp. 2
Author(s):  
Tan Khee Giap ◽  
Mulya Amri
Keyword(s):  
Slow Growth ◽  
Full Employment ◽  
Labour Force ◽  
Labour Productivity ◽  
Value Added ◽  
Output Growth ◽  
Causal Effects ◽  
Causality Analysis ◽  
Economic Activities ◽  
Low Levels

This article presents a causality analysis of lagging economic growth in two Indonesian provinces: East Nusa Tenggara and North Maluku. We identify three variables which stand out for some of Indonesia’s economically challenged provinces: consistently low gross domestic product (GDP) growth, low levels of manufacturing, and under-utilisation of labour. Using Geweke causality analysis, we identify and measure the direction of causal effects between these variables. Our empirical findings confirm that output growth is affected by the level of value addition in economic activities and the productivity of human resources. We find that both the secondary sector’s contribution to gross regional development product (GRDP) and labour productivity contribute to the changes in overall provincial GRDP, but not the other way around. Such findings suggest that development in Indonesia’s economically challenged provinces would benefit greatly from expansion of appropriate manufacturing and value added activities, and more productive utilization of labour force in full employment situations.

Methodological approaches to assessing the digitalization scale in types of economic activity in the region and the potential of digital technologies for the real economy

2021 ◽  
Vol 17 (8) ◽  
pp. 1519-1541
Author(s):  
Vitalii V. PECHATKIN ◽  
Liliya M. VIL'DANOVA
Keyword(s):  
Methodological Approach ◽  
Import Substitution ◽  
Digital Technologies ◽  
Industrial Sector ◽  
Digital Transformation ◽  
Real Economy ◽  
Economic Activities ◽  
The Real ◽  
Industrial Enterprises ◽  
Methodological Approaches

Subject. As digital technologies spread across all industries, active processes of digital transformation need to be managed both nationally and regionally. Assessing the extent of digitalization across types of economic activities is the key issue for setting up the socio-economic development strategy of the region and evaluating its efficiency. Objectives. The study is aimed to formulate and test methodological approaches to assessing the digitalization in types of economic activities and the potential of digital technologies for the real economy. Methods. The study relies upon the dialectical method, systems approach, questionnaires, expert approach, interpretation of empirical facts through tables, etc. Results. We devised a methodological approaches to assessing the extent of digitalization in types of economic activities across regions. The approach combines the quantification and evaluation of the process and helps determine the extent of local digital transformation at the regional level. We devised and tested the methodological approach to rating digital technologies, which have the high potential for raising the competitiveness and resilience to competition of the industrial sector in the Russian regions. As opposed to the existing approaches, the approach accounts for the current scale of digital technologies in the national economy, the potential for growth in the demand and supply in the domestic and foreign markets, and the potential for import substitution with respect to foreign technologies and products. Conclusions and Relevance. What makes the proposed methodological approaches more preferable is that they help assess not only the extent of digitalization in types of economic activities and the predominance of certain types in industrial enterprises, but also determine their potential for import substitution in terms of digital security.

The persistent effect of banking crises on investment and the role of financial markets

2014 ◽  
Vol 6 (1) ◽  
pp. 64-77 ◽  
Author(s):  
Felix Rioja ◽  
Fernando Rios-Avila ◽  
Neven Valev
Keyword(s):  
Financial Markets ◽  
Financial Development ◽  
Banking Crisis ◽  
Banking Crises ◽  
Output Growth ◽  
Long Term Effects ◽  
Content Type ◽  
Negative Effect

Purpose – While the literature studying the effect of banking crises on real output growth rates has found short-lived effects, recent work has focused on the level effects showing that banking crises can reduce output below its trend for several years. This paper aims to investigate the effect of banking crises on investment finding a prolonged negative effect. Design/methodology/approach – The authors test to see whether investment declines after a banking crisis and, if it does, for how long and by how much. The paper uses data for 148 countries from 1963 to 2007. Econometrically, the authors test how banking crises episodes affect investment in future years after controlling for other potential determinants. Findings – The authors find that the investment to GDP ratio is on average about 1.7 percent lower for about eight years following a banking crisis. These results are robust after controlling for credit availability, institutional characteristics, and a host of other factors. Furthermore, the authors find that the size and duration of this adverse effect on investment varies according to the level of financial development of a country. The largest and longer-lasting decrease in investment is found in countries in a middle region of financial development, where finance plays its most important role according to theory. Originality/value – The authors contribute by finding that banking crisis can have long-term effects on investment of up to nine years. Further, the authors contribute by finding that the level of development of the country's financial markets affects the duration of this decrease in investment.

scholarly journals Value Added from the Perspective of Econophysics

2021 ◽  
Vol 24 (4) ◽  
pp. 137-152
Author(s):  
Ihor Hurnyak ◽  
Nataliya Struk ◽  
Aleksandra Kordonska
Keyword(s):  
Regression Models ◽  
Economic Value ◽  
Value Added ◽  
Economic Value Added ◽  
Accounts Receivable ◽  
Goods And Services ◽  
Accounts Payable ◽  
Intermediate Consumption ◽  
Economic Forces ◽  
Business Efficiency

The production, or value added, approach to GDP involves calculating an industry or sector’s output and subtracting its intermediate consumption (the goods and services used to produce the output) to derive its value added. The value added at the macro level depends on business efficiency. It reflects an increase in value that a business creates by undertaking the production process. We assumed that the market creates thousands of vibrating energies, coming from other enterprises, with different frequencies. The purpose of this article is to verify whether the econophysics approach could be successfully used to assess a business from the perspective of the interaction between economic forces. Thus, we propose that the term ‘value added’ be understood as a certain amount of accumulated energy of enterprises that comes from the interaction of basic economic forces and economic vibrating forces of accounting. Using regression models, we show the influence of basic forces, like debt and the stock market, and vibrating ones (i.e., accounts payable, accounts receivable, inventory) on the economic value added by testing US, European, and emerging markets. We confirmed the relevance and appropriateness of the econophysics approach to estimating the economic value added.

scholarly journals Production of economic statistics for tourist accommodation services of Belo Horizonte under the flexible geography approach

2020 ◽  
Vol 8 (2) ◽  
pp. 198-221
Author(s):  
Caio César Soares Gonçalves
Keyword(s):  
Value Added ◽  
Small Enterprises ◽  
Economic Activities ◽  
Economic Statistics ◽  
Experimental Economic ◽  
Starting Point ◽  
Micro And Small Enterprises ◽  
Belo Horizonte ◽  
Definition Of ◽  
Tourist Accommodation

This paper aims to produce an experimental economic statistic for the tourist accommodation services for Belo Horizonte under a flexible geography perspective. The starting point is the definition of economic activities in the tourist accommodation concept. The methodology adopted is up-down divided into four steps including filtering processes to accompany the definition, discounts related to obtaining information only for the tourists and procedures for adjustments to the statistics always being compared to the official disclosures and respecting the sum of regions. This analysis revealed an erratic behaviour of the number of establishments in Belo Horizonte across the years and half of the workforce is concentrated in micro and small enterprises. The data from the perspective of the flexible geography allowed to verify where the almost R$ 86 million indicated by the value added of the tourist accommodations were located in 2015. Keywords: Economic Statistics. Economic Geography. Accommodation Services. Flexible Geography.

scholarly journals Macroeconomic policy regime in Poland

Equilibrium ◽  
2016 ◽  
Vol 11 (3) ◽  
pp. 411
Author(s):  
Milka Kazandziska Kazandziska
Keyword(s):  
Monetary Policy ◽  
Economic Policy ◽  
Industrial Policy ◽  
Open Economy ◽  
Aggregate Demand ◽  
Financial System ◽  
Value Added ◽  
Macroeconomic Policy ◽  
Wage Policy ◽  
Foreign Economic Policy

The goal of this paper is to analyse the economic development of Poland using the concept of macroeconomic policy regimes (MPRs). Six elements of a MPR will be identified: foreign economic policy, industrial policy, the financial system, wage policy, monetary policy and fiscal policy. Examining the functionality of the development of these elements applied to Poland is a further aim of this paper. The functionality of the development of the MPR elements will be analysed on the basis of the fulfilment of the objectives, as well as the use of the proposed instruments and strategy assigned to every element of MPR. Due to space limits, we are going to focus on the former in this paper. Taking into consideration that Poland is an emerging and a relatively open economy, foreign economic policy and industrial policy play very significant roles in restructuring of the economy towards production and exports of high value-added products, which would enable the country to follow a growth path consistent with an external balance. The financial needs of the manufacturing sector and particularly of the producers and/or exporters of high-end products need to be satisfied by the financial system, whose stability needs to be secured with the help of monetary policy. The latter is, moreover, in charge of providing low-cost finance and maintaining the stability of the exchange rate. Stabilising the inflation rate would be given to wage policy. Fiscal policy’s main tasks would be to correct aggregate demand shocks and reduce income inequality.

scholarly journals Relação entre o valor adicionado das atividades econômicas e o produto interno bruto do Rio Grande do Norte

2018 ◽  
Vol 17 (2) ◽  
pp. 757-782
Author(s):  
Ruhama Bezerra Fernandes ◽  
Adilson de Lima Tavares ◽  
Yuri Gomes Paiva Azevedo
Keyword(s):  
Gross Domestic Product ◽  
Value Added ◽  
Rio Grande ◽  
Ordinary Least Squares ◽  
Added Value ◽  
Domestic Product ◽  
Economic Activities ◽  
Sense Data ◽  
Agriculture Industry ◽  
The Difference

Resumo: Neste estudo teve-se por objetivo analisar a relação do valor adicionado das principais atividades econômicas (agropecuária, indústria, serviços e administração pública) relativamente ao Produto Interno Bruto (PIB) do Rio Grande do Norte, durante o período de 2010 a 2013. Nesse sentido, foram coletados dados relativos ao valor adicionado, ao PIB e à população no sítio do Instituto Brasileiro de Geografia e Estatística (IBGE), bem como referentes ao Índice Firjan de Desenvolvimento Municipal (IFDM), por meio do sítio do Sistema Firjan. A amostra compreendeu 166 municípios, de uma totalidade de 167. Para a realização das análises, além da estatística descritiva, foi estimado um modelo de regressão por mínimos quadrados ordinários com dados dispostos em painel, tendo o PIB como variável dependente e as demais variáveis como independentes. Com base nos resultados encontrados, verifica-se que os valores adicionados pelas atividades econômicas apresentam relação positiva e estatisticamente significante, enquanto que as variáveis população e IFDM se relacionam de forma negativa, trazendo à tona questionamentos sobre a distribuição de renda, as políticas socioeconômicas relativas à transição demográfica e a diferença dos conceitos de crescimento e desenvolvimento econômico, corroborando para a hipótese de que o PIB não mede qualidade de vida. Por fim, a partir dos resultados mensurados, conclui-se que os valores adicionados pelas atividades econômicas do Estado do Rio Grande do Norte possuem relação estatisticamente significante com o PIB no período investigado.Palavras-chave: Produto Interno Bruto. Demonstração do Valor Adicionado. Rio Grande do Norte. Relationship between the added value of the economic activities and the Gross Domestic Product of Rio Grande do Norte Abstract: The study aims to analyze the relation of the value added of the main economic activities (agriculture, industry, services and public administration) regarding the Gross Domestic Product of Rio Grande do Norte during the period from 2010 to 2013. In this sense, data on value added, GDP and population were collected on the website of the Brazilian Institute of Geography and Statistics (IBGE), as well as on the Firjan Municipal Development Index (IFDM), through the Firjan System website. The sample comprised 166 municipalities, out of a total of 167. In addition to the descriptive statistics, a regression model was estimated by ordinary least squares with data arranged in a panel, with GDP as a dependent variable and the other variables as independently. Based on the results found, it can be seen that the values added by economic activities have a positive and statistically significant relationship, while the variables population and IFDM were related in a negative way, raising questions about income distribution, socioeconomic policies related to the demographic transition and the difference of the concepts of growth and economic development, corroborating the hypothesis that GDP does not measure quality of life. Finally, from the results measured, it can be concluded that the added values by the economic activities of the State of Rio Grande do Norte have a statistically significant relation with the GDP in the period investigated.Keywords: Gross Domestic Product. Added Value Statements. Rio Grande do Norte.

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