scholarly journals Formation of institutional structural determinants of endogenous influence on the level of gross saving in Ukraine

2021 ◽  
Vol 2021 (3) ◽  
pp. 33-58
Author(s):  
Iryna Kriuchkova ◽  
◽  

The article analyzes domestic institutional structural determinants of gross saving (GS) in Ukraine in order to identify the causes of the critical decline in GS and, accordingly, in gross fixed capital formation (GFCF) in 2019-2021. The diagnosis was made based on indicators of annual and quarterly national accounts of Ukraine with the definition of positive and negative factors influencing GS by institutional sectors, as well as subsectors of nonfinancial corporations and households. This approach made it possible to reveal the hidden causes of the decline in gross saving in Ukraine, as well as the decline in GS capitalization and the deep investment crisis in 2020. The author shows that the shock tariff increase in 2015 provoked a significant redistribution of income and savings between the institutional sectors and their subsectors. It is found that of all structural determinants, fluctuations in the level of GS in the subsector of private nonfinancial corporations are most affected by the changes in the share of gross operating surplus, (GOS) and by the large-scale outflow of financial resources through the property income channel, which varies closely depending on the growth of borrowing. These fluctuations are also affected by zero and abrupt cycles in raising the minimum wage. At the same time, it is proved that the inconsistency of the government's tariff and social policies created a two-fold gap between the statutory social standards and their actual level, which led to significant decline in living standards, especially for the recipients of property income and transfer incoms, turning them into chronic negative borrowers with negative gross saving. This had a negative impact on the GS of the whole household sector. Deepening the analysis to the level of GS structural determinants of the households subsectors shows that the high levels of GS in the subsector of self-employed workers and the subsector of employers do not correspond to the low levels of their gross fixed capital formation, i.e. a significant share of GS of these subsectors does not become a full source of national investment. The author outlines the directions for desired changes in the structural determinants of endogenous impact on the GS level in the household sector and proposes a number of government measures that could positively affect the distribution of income between the institutional sectors and subsectors and, accordingly, the level of GS.

2017 ◽  
Vol 3 (1) ◽  
pp. 57-68
Author(s):  
Rashid Ahmad ◽  
Kashif Raza ◽  
Sobia Saher

Purpose: This paper estimates the impact of trade openness and economic growth in Pakistan by using time series data from period of 1975-2014. Econometric method was applied to estimate the impact of trade openness on economic growth. Gross fixed capital formation (proxy of investment), Foreign direct investment, Imports, Exports & trade openness (proxy of trade openness to check the volume of trade of a country) is used as explanatory variables while gross domestic product is treated as dependent variable in this study. Johansson co. integration approach developed by Johannes & Jeslius (1988) is used to evaluate the long run relationship among variables in this study. The results suggest that trade openness, imports, exports and foreign direct investment cast have positive impact on economic growth while on the other hand; gross fixed capital formation &labor force has negative impact on economic growth.


Author(s):  
Magnus Kvåle Helliesen ◽  
Håvard Hungnes ◽  
Terje Skjerpen

AbstractThis paper investigates the quality of preliminary figures in the Norwegian National Accounts. To address the problem of few observations in such analyses, we use some recently developed system tests for forecast evaluation. We find that preliminary figures for growth rates NA figures (measured in real terms) are accurate, unbiased and efficient. The exception is growth rates for real gross fixed capital formation, which under-predict the final figures. Early published vintages of growth rates for real gross fixed capital formation are often closer to the final vintages than later vintages are.


Author(s):  
Slobodan Lakić ◽  
Jasmina Ćetković ◽  
Bojan Pejović ◽  
Miloš Žarković ◽  
Miloš Knežević

Economic growth is a key point of macroeconomic policy and is the subject of constant attention and debate by professional public and policy makers. Theoretical and empirical research indicates differences in the level and direction of determinants’ influence on the growth rate. The main goal of our article is to construct a model of economic growth determinants in South-East European countries. We used an unbalanced panel of 12 selected SEE countries over the period 2006–2019. Our empirical findings have shown that the most robust results can be obtained using a two-step generalized method of moments (GMM) model with dummy variable. In our dynamic model, we found that trade openness and gross fixed capital formation have a positive impact on economic growth, while government expenditures negatively determine economic growth. Gross fixed capital formation has the greatest positive impact on economic growth, while government expenditure has the greatest negative impact.


Sign in / Sign up

Export Citation Format

Share Document