scholarly journals The impact of education expenditures on growth in the EU28 – a spatial econometric perspective

2018 ◽  
Vol 68 (2) ◽  
pp. 271-294 ◽  
Author(s):  
Lena Malešević Perović ◽  
Silvia Golem ◽  
Maja Mihaljević Kosor
Keyword(s):  
Growth Models ◽  
Spillover Effects ◽  
Government Expenditures ◽  
Gdp Growth ◽  
Spatial Econometric ◽  
Spatial Spillovers ◽  
Education Expenditures ◽  
Geographical Distances ◽  
The Impact ◽  
Spatial Transmission

This paper analyses spatial impact of government expenditures on education on economic growth in the EU28 countries during the period 2004–2013. Employing a novel econometric technique that allows for the estimation of spatial spillovers, our results indicate that government expenditures on education significantly and positively infl uence GDP growth. Moreover, the indirect i.e. the spillover effects are quite large suggesting that the growth models should account for spatial interdependencies. Precisely, we find that education expenditures in one country affect GDP growth in the neighbouring countries, meaning that these spillovers are geographical in nature. Moreover, we find that the degree of interdependence among countries varies according to the average GDP per capita even if their geographical distances are identical. Additionally, immigration is found to be an important channel of spatial transmission.

scholarly journals The Impact of Air Pollution on Domestic Tourism in China: A Spatial Econometric Analysis

2019 ◽  
Vol 11 (15) ◽  
pp. 4148 ◽  
Author(s):  
Daxin Dong ◽  
Xiaowei Xu ◽  
Hong Yu ◽  
Yanfang Zhao
Keyword(s):  
Air Pollution ◽  
Air Quality ◽  
Local Governments ◽  
Spillover Effects ◽  
Tourism Industry ◽  
Spatial Econometric ◽  
Pm 2.5 ◽  
Domestic Tourism ◽  
The Impact ◽  
Domestic Tourist

This study utilizes a spatial econometric model to analyze the impact of air pollution on domestic tourism in China. Based on a panel dataset covering 337 cities from 2004–2013, this study derives the following findings. (1) Air pollution significantly reduces domestic tourist arrivals in the local city. On average, if the concentration of PM 2.5 (particulate matter equal to or less than 2.5 micrometers in width) in one city increases by 1 μ g/m 3 , the number of domestic tourists to the city declines by 0.7%. (2) Air pollution demonstrates significant spatial spillover effects. If the PM 2.5 in other cities simultaneously increases by 1 μ g/m 3 , the number of domestic tourists traveling to the local city rises by 4.1%. (3) The magnitude of the spillover effects of air pollution is larger than the negative direct effects on local cities. This study suggests that enhancing air quality in the local area will effectively promote the domestic tourism industry in the local city. In addition, it is implied that a simultaneous improvement in the air quality in all cities might not lead to an increase in the number of domestic tourist arrivals. Thus, in order to deal with the spillover effects of air pollution on the domestic tourism industry, local governments should make efforts to develop cross-city or cross-region tourism.

Foreign Direct Investment and Total Factor Productivity: Any Nexus?

2020 ◽  
Vol 14 (2) ◽  
pp. 164-190
Author(s):  
Mohammed Abdullah ◽  
Murshed Chowdhury
Keyword(s):  
Foreign Direct Investment ◽  
Total Factor Productivity ◽  
Direct Investment ◽  
Growth Models ◽  
Generalized Method Of Moments ◽  
Spillover Effects ◽  
Jel Classification ◽  
Estimation Methods ◽  
Factor Productivity ◽  
The Impact

This study examines the impact of foreign direct investment (FDI) on the total factor productivity (TFP) of host countries. Extensions of the new growth theory provide a framework in which FDI increases the growth rate of a host country through technology transfer, diffusion and spillover effects. We construct four new series of TFP using the framework of neoclassical growth models. We also address the issue of endogeneity using the generalized method of moments. Our estimations using a balanced panel of 77 low- and middle-income countries suggest that FDI could not promote TFP in the countries studied. Our sensitivity analysis, in terms of alternative estimation methods, data, models and time period, reinforces the findings. We observe that the lack of absorptive capacity is likely to be an important reason for not having a direct relationship between FDI and TFP. JEL Classification: F21, F23, O33, F43, C33

scholarly journals Nowcasting is not Just Contemporaneous Forecasting

2009 ◽  
Vol 210 ◽  
pp. 71-89 ◽  
Author(s):  
Jennifer L. Castle ◽  
Nicholas W.P. Fawcett ◽  
David F. Hendry
Keyword(s):  
Survey Data ◽  
Euro Area ◽  
Measurement Errors ◽  
Growth Models ◽  
Gdp Growth ◽  
Automatic Methods ◽  
The Impact ◽  
Data Switching

We consider the reasons for nowcasting, the timing of information and sources thereof, especially contemporaneous data, which introduce different aspects compared to forecasting. We allow for the impact of location shifts inducing nowcast failure and nowcasting during breaks, probably with measurement errors. We also apply a variant of the nowcasting strategy proposed in Castle and Hendry (2009) to nowcast Euro Area GDP growth. Models of disaggregate monthly indicators are built by automatic methods, forecasting all variables that are released with a publication lag each period, then testing for shifts in available measures including survey data, switching to robust forecasts of missing series when breaks are detected.

scholarly journals Expenditures on Collective and Individual Services: Discussion on the Classification of Government Expenditures with Regard to their Inclusion into Growth Models

2015 ◽  
Vol 5 (4) ◽  
pp. 287-296 ◽  
Author(s):  
Zuzana Machová ◽  
Igor Kotlán
Keyword(s):  
Economic Growth ◽  
Empirical Analysis ◽  
Growth Models ◽  
Developed Countries ◽  
Government Expenditures ◽  
Negative Effects ◽  
Education And Health ◽  
Long Run ◽  
The Impact

Abstract The aim of this paper is to examine the effects of government expenditures on long-run economic growth in developed countries using their different breakdown. Empirical analysis is performed for a panel of 34 OECD countries in the period 2000-2012. Above all, the results support the idea that conclusions of previous studies on this topic may be strongly distorted by inappropriate classification of expenditures, typically in the case of expenditures on education and health. These are usually considered productive and thus growth enhancing, but if their part of R&D expenditures is detached, their effect on growth is in fact negative. In general, it is concluded that government expenditures on individual services have negative effects on growth, while the impact of expenditures on collective services is positive.

scholarly journals The Impact of Environmental Protection Tax on the Upgrading of Industrial Structure-Based on Spatial Econometric Analysis

2019 ◽  
Vol 131 ◽  
pp. 01070
Author(s):  
Aiping Guan ◽  
Jing Xie ◽  
Yu Meng
Keyword(s):  
Environmental Protection ◽  
Industrial Structure ◽  
Econometric Model ◽  
Positive Impact ◽  
Spillover Effects ◽  
Spatial Correlations ◽  
Spatial Econometric ◽  
Spatial Weight ◽  
Spatial Econometric Model ◽  
The Impact

Based on the provincial panel data of 30 provinces in China from 2000 to 2017, this paper uses the spatial econometric model to analyze the impact of environmental protection tax on the upgrading of industrial structure under three spatial weight matrices. The results show that there are significant positive spatial correlations in the upgrading of provincial industrial structure in China, and environmental protection tax has a significant positive spatial spillover effects on the upgrading of industrial structure. The implementation of environmental protection tax in provinces and regions will promote the upgrading of local industrial structure, which will have a positive impact on the upgrading of industrial structure in neighboring provinces and regions.

Do universities generate spatial spillovers? Evidence from US counties between 1930 and 2010

2018 ◽  
Vol 19 (6) ◽  
pp. 1173-1210 ◽  
Author(s):  
Alexandra L Cermeño
Keyword(s):  
Population Density ◽  
Spillover Effects ◽  
Spatial Spillovers ◽  
Variable Approach ◽  
Congestion Costs ◽  
The Usa ◽  
Ease Of Access ◽  
Research Intensity ◽  
The Impact ◽  
First Time

Abstract This paper explores the impact of new universities established in the USA between 1931 and 1980 on population density, GDP and market size measured from 1930 to 2010. The analysis is based on differences in differences on counties selected through propensity score matching, as well as an instrumental variable approach. The evidence suggests that counties hosting a university for the first time grew by between 1% and 3% annually on top of the general trends of population density and GDP growth, and that this effect expanded to neighboring counties. Controlling for research intensity and interstate road infrastructure shows that the potential gains from these new universities were severely constrained by the ease of access, which eventually resulted in higher congestion costs. These results point to a situation where new universities create spillover effects that eventually fade away if not accompanied by additional investments.

scholarly journals Panel Data Models of New Firm Formation in New England

REGION ◽  
2017 ◽  
Vol 4 (3) ◽  
pp. 65 ◽  
Author(s):  
Jitendra Parajuli ◽  
Kingsley E. Haynes
Keyword(s):  
New England ◽  
Single Unit ◽  
Positive Impact ◽  
Spillover Effects ◽  
Firm Formation ◽  
Spatial Spillovers ◽  
Panel Model ◽  
New Firm Formation ◽  
New Firm ◽  
The Impact

This study examines the impact of the determinants of new firm formation in New England at the county level from 1999 to 2009. Based on the Spatial Durbin panel model that accounts for spillover effects, it is found that population density and human capital positively affect single-unit firm births within a county and its neighbors. Population growth rate also exerts a significant positive impact on new firm formation, but most of the effect is from spatial spillovers. On the contrary, the ratio of large to small firm in terms of employment size and unemployment rate negatively influence single-unit firm births both within counties and among neighbors. However, there is no significant impact of local financial capital and personal income growth on new firm formation.

Financial and monetary policy of the State and its impact on the income level and poverty reduction in Russia

2020 ◽  
Vol 26 (5) ◽  
pp. 964-990
Author(s):  
N.I. Kulikov ◽  
V.L. Parkhomenko ◽  
Akun Anna Stefani Rozi Mobio
Keyword(s):  
Monetary Policy ◽  
Household Income ◽  
Poverty Reduction ◽  
The State ◽  
Financial Policy ◽  
Gdp Growth ◽  
Tax Rate ◽  
Gdp Growth Rate ◽  
The Government ◽  
The Impact

Subject. We assess the impact of tight financial and monetary policy of the government of the Russian Federation and the Bank of Russia on the level of household income and poverty reduction in Russia. Objectives. The purpose of the study is to analyze the results of financial and monetary policy in Russia and determine why the situation with household income and poverty has not changed for the recent six years, and the GDP growth rate in Russia is significantly lagging behind the global average. Methods. The study employs methods of analysis of scientific and information base, and synthesis of obtained data. The methodology and theoretical framework draw upon works of domestic and foreign scientists on economic and financial support to economy and population’s income. Results. We offer measures for liberalization of the financial and monetary policy of the government and the Central Bank to ensure changes in the structure of the Russian economy. The proposed alternative economic and financial policy of the State will enable the growth of real incomes of the population, poverty reduction by half by 2024, and annual GDP growth up to 6 per cent. Conclusions. It is crucial to change budget priorities, increase the salaries of public employees, introduce a progressive tax rate for individuals; to reduce the key rate to the value of annual inflation and limit the bank margin. The country needs a phased program to increase the population's income, which will ensure consumer demand.

scholarly journals The impact of a minimum wage change on the distribution of wages and household income

2020 ◽  
Author(s):  
Paul Redmond ◽  
Karina Doorley ◽  
Seamus McGuinness
Keyword(s):  
Income Distribution ◽  
Minimum Wage ◽  
Wage Inequality ◽  
Household Income ◽  
Spillover Effects ◽  
Wage Distribution ◽  
Wage Increase ◽  
Minimum Wage Increase ◽  
Wage Change ◽  
The Impact

Abstract We use distribution regression analysis to study the impact of a 6% increase in the Irish minimum wage on the distribution of hourly wages and household income. Wage inequality, measured by the ratio of wages in the 90th and 10th percentiles and the 75th and 25th percentiles, decreased by approximately 8 and 4%, respectively. The results point towards wage spillover effects up to the 30th percentile of the wage distribution. We show that minimum wage workers are spread throughout the household income distribution and are often located in high-income households. Therefore, while we observe strong effects on the wage distribution, the impact of a minimum wage increase on the household income distribution is quite limited.

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