scholarly journals The Impact of Fiscal Policy on Foreign Direct Investment Inflows: A Study of India and Select Asian Economies

2014 ◽  
Vol 1 (1) ◽  
Author(s):  
Niti Bhasin
Keyword(s):  
Fiscal Policy ◽  
Fixed Effects ◽  
Fixed Effects Model ◽  
Fdi Inflows ◽  
Dummy Variables ◽  
Principle Component Regression ◽  
The Government ◽  
The Impact ◽  
Model Approach

While the role of taxation in influencing FDI has received considerable attention in literature, there has been very less work on examining the role of fiscal policy as a whole on FDI inflows. The dimension of fiscal policy that relates to the expenditure of the government has not received much attention in terms of its impact on FDI. This study would attempt to bridge the gap in literature by examining the impact of both the revenue and expenditure side of fiscal policy on FDI inflows in India and other select economies of the Asian region. The paper identifies the determinants of FDI flows with special reference to fiscal policy variables, namely tax treaties and developmental expenditure of the government. With the help of principle component regression, we have estimated a panel equation with the Least Squared Dummy Variables (fixed effects model) approach. The determinants which have emerged as significant are FDI openness and infrastructure. Our variables of interest, that is, the fiscal policy variables turn out to be insignificant. Thus while a competitive fiscal policy may facilitate operations of business, it is still not a prime consideration in investment decisions.

scholarly journals COVID-19 Pandemic Uncertainty Shock Impact on Macroeconomic Stability in Ethiopia

2020 ◽  
Vol 11 (2) ◽  
pp. 132
Author(s):  
Habtamu Girma DEMIESSIE
Keyword(s):  
Fiscal Policy ◽  
Aggregate Demand ◽  
Spillover Effects ◽  
Food Prices ◽  
Shock Effect ◽  
Food Transport ◽  
The Government ◽  
The Impact ◽  
Macroeconomic Stability

This study investigated the impact of COVID-19 pandemic uncertainty shock on the macroeconomic stability in Ethiopia in the short run period. The World Pandemic Uncertainty Index (WPUI) was used a proxy variable to measure COVID-19 Uncertainty shock effect. The pandemic effect on core macroeconomic variables like investment, employment, prices (both food & non-food prices), import, export and fiscal policy indicators was estimated and forecasted using Dynamic Stochastic General Equilibrium (DSGE) Model. The role of fiscal policy in mitigating the shock effect of coronavirus pandemic on macroeconomic stability is also investigated. The finding of the study reveals that the COVID-19 impact lasts at least three years to shake the economy of Ethiopia. Given that the Ethiopian economy heavily relies on import to supply the bulk of its consumption and investment goods, COVID-19 uncertainty effect starts as supply chain shock, whose effect transmitted into the domestic economy via international trade channel. The pandemic uncertainty shock effect is also expected to quickly transcend to destabilize the economy via aggregate demand, food & non-food prices, investment, employment and export shocks. The overall impact of COVID-19 pandemic uncertainty shock is interpreted into the economy by resulting under consumption at least in the next three years since 2020. Therefore, the government is expected to enact incentives/policy directions which can boost business confidence. A managed expansionary fiscal policy is found key to promote investment, employment and to stabilize food & non-food prices. A particular role of fiscal policy was identified to stabilizing food, transport and communication prices. The potency of fiscal policies in stabilizing food, transport and communication prices go in line with the prevailing reality in Ethiopia where government has strong hands to control those markets directly and/or indirectly. This suggests market failure featuring COVID-19 time, calling for managed interventions of governments to promote market stabilities. More importantly, price stabilization policies of the government can have spillover effects in boosting aggregate demand by spurring investments (and widening employment opportunities) in transport/logistics, hotel & restaurant, culture & tourism and export sectors in particular.

scholarly journals The Impact of Environmental Pollution on the Health of Middle-Aged and Older Adults in China

2021 ◽  
Author(s):  
Hongli Fan ◽  
Yingcheng Wang ◽  
Ying Wang ◽  
Peter C Coyte
Keyword(s):  
Older Adults ◽  
Environmental Pollution ◽  
Fixed Effects ◽  
Elderly Women ◽  
Population Aging ◽  
Pollution Prevention ◽  
Fixed Effects Model ◽  
Middle Aged ◽  
The Government ◽  
The Impact

Abstract While several studies have demonstrated the negative impacts of environmental pollution on population health, in general, few studies have examined the potential differential effects on the health of middle-aged and older populations, i.e. 45 years and older. Given the twin concerns of environmental pollution and population aging in China, this article employed a fixed effects model to infer the impact of environmental pollution on public health with a particular focus on middle-aged and older adults. The analyses were based on data from the 2011–2018 waves of the CHARLS and pollutant data from prefecture-level cities. The results showed that environmental pollution significantly increased the risk of chronic diseases and negatively impacted the health of middle-aged and older adults. Environmental pollution had its greatest negative effect on the health of the elderly, women, urban residents and those with lower incomes than for their counterparts. We further found that the main channels of effect were through reduced physical exercise and an increase in depressive symptoms, and the pollution prevention actions alleviated the health deterioration of environmental pollution for the middle-aged and elderly. It is imperative for the government to urgently reinforce policy's enforcement to decrease air and water pollution, and enhance the ability to circumvent pollution for the lower socioeconomic groups.

scholarly journals Fiscal Response to Terrorism in Pakistan: The Role of Institutions

2021 ◽  
Vol 5 (1) ◽  
pp. 154-192
Author(s):  
Tahir Mukhtar ◽  
Zainab Jehan
Keyword(s):  
Fiscal Policy ◽  
Time Series Data ◽  
Institutional Quality ◽  
Jel Classification ◽  
Defense Spending ◽  
Series Data ◽  
Tax Revenue ◽  
The Government ◽  
The Impact

This study empirically estimates the fiscal consequences of terrorism in Pakistan by using annual time series data from 1984 to 2016. By employing the autoregressive distributed lag (ARDL) technique, the study has gauged the impact of terrorist incidents on two important facets of fiscal policy, namely, tax revenue and defense spending. The results reveal that terrorism has detrimental ramifications for fiscal policy in Pakistan. Specifically, on the one hand, an increase in terrorist incidents tends to bring a fall in tax revenue while on the other hand, they induce a rise in defense outlays, thus deteriorating both fronts of the fiscal position. Notably, the moderating role of institutional quality appears significant and indicates that institutional quality has not only a significant direct impact on fiscal policy, but it also helps in completely mitigating (reducing) the harmful impact of terrorism on defense spending (tax revenue) in Pakistan. These findings suggest that there is a need to take appropriate steps for strengthening institutional setup to control the fallouts of terrorism on fiscal behavior of the government of Pakistan. Keywords: Terrorism; Tax Revenue; Institutional Quality; ARDL JEL Classification: E62; H2; E02; H5; F35

scholarly journals An empirical analysis on the impact of non-performing loans on investment and economic growth and the role of political governance

2020 ◽  
Vol 8 ◽  
pp. 1-21
Author(s):  
Swapnanil SenGupta ◽  
Keyword(s):  
Fixed Effects ◽  
Negative Impact ◽  
Annual Data ◽  
Fixed Effects Model ◽  
Model Composite ◽  
Paradoxical Result ◽  
Governance Index ◽  
Political Governance ◽  
The Impact

Objective: To empirically analyze the link between nonperforming loans and investments along with the role of political governance. The estimation technique used is the fixed effects model including both the country and timMethods: e fixed effects. The dataset consists a panel of 103 countries with annual data over the period from 2000 to 2017. A unique composite political governance index has been prepared combining the six existing governance indicators via Principal Component Analysis (PCA). Findings: It is found that NPL has significant negative impact whereas, governance has significant positive impact on investments as per expectations. However, it is found that the negative impact of NPL on investment gets stronger in presence of good governance. This is a paradoxical result and further attempts has been made to rationalize the outcome. Applications: The study empirically proves the theory of negative impacts of NPL on investment in the economy. Furthermore, the role of political governance has been scrutinized. No prior works have been carried out on this topic. The paradoxical result in this study has opened up new areas for research. An extensive literature review has been provided along with a detailed discussion on the possible measures to tackle with the problems. JEL Classification: C3, E6, G0. Keywords: NPL; investment; political governance institutions; fixed effects model; composite political governance index

scholarly journals Do Non-Economic Factors Effect Village Fund?

2020 ◽  
Vol 9 (1) ◽  
pp. 93-106
Author(s):  
Lely Ratwianingsih ◽  
Malik Cahyadin ◽  
Sutomo Sutomo
Keyword(s):  
Fixed Effects ◽  
Secondary Data ◽  
Economic Factors ◽  
Regional Government ◽  
Fixed Effects Model ◽  
Central Java ◽  
Funds Allocation ◽  
The Government ◽  
The Impact ◽  
The Village

The Government has enacted Law Number 6/2014 concerning Villages. One policy included in that Law is the provision of Village Funds (Dana Desa) in which its implementation can be investigated based on non-economic aspects. For this reason, this study aims to analyze the impact of non-economic factors on Village Funds disbursed in 29 districts in Central Java Province. These factors include population and the Human Development Index (HDI). While using secondary data from 2015-2017, this research employs a method using panel data with the best model known as the Fixed Effects Model (FEM). The FEM estimation results show that the population has a significant impact, while HDI's impact is not significant. Besides, the ratio between Village Funds and the population has a significant impact on Village Funds. Thus, both the Central and the Regional Government, as well as the Village Heads, should consider the population in allocating Village Funds. The contribution of this study is that the Government should formulate an appropriate policy for Village Funds allocation by considering non-economic factors in each village.JEL Classification: O10, O23, E62How to Cite:Ratwianingsih, L., Cahyadin, M., & Sutomo. (2020). Do Non-Economic Factors Affect Village Funds?. Signifikan: Jurnal Ilmu Ekonomi, Vol. 9(1), 93-106. doi: http://dx.doi.org/10.15408/sjie.v9i1.14056.

scholarly journals The Role of Remittances on Economic Growth: An Empirical Investigation Of 12 CEE Countries

2013 ◽  
Vol 12 (2) ◽  
pp. 193 ◽  
Author(s):  
Altin Gjini
Keyword(s):  
Economic Growth ◽  
Developing Countries ◽  
Fixed Effects ◽  
Capital Investment ◽  
Main Concern ◽  
Eastern European ◽  
Fixed Effects Model ◽  
Negative Effects ◽  
The Impact

This study investigates the role of remittances on economic growth in Central and Eastern European (CEE) countries. The main concern of CEE countries after the collapse of Communism has been to develop strategies for increasing their standard of living to the level of Western countries. Economic growth experienced after 1991 has been impressive for these countries. Factors that have influenced economic growth in developing countries vary from capital investment, to labor surplus, technological change, trade, foreign aid, foreign direct investment, research and development, and institutional factors. This papers main objective is to examine the impact of remittances on economic growth in 12 CEE developing countries[1] using balanced panel data covering the period from 1996?2010. We do this by using a fixed-effects model with heteroscedasticity corrected standard errors. We find that remittances have had negative effects on growth in this area for the period analyzed. Thus, an increase in remittances by 10% decreases the output by about 0.9%. [1] Albania, Bulgaria, Croatia, Czech Republic, Hungary, Latvia, Lithuania, Macedonia, Poland, Romania, Slovakia, and Slovenia.

scholarly journals The Role of Taxes in Economic Development of Kosovo

2016 ◽  
Vol 4 (1) ◽  
pp. 79
Author(s):  
Artan Nimani
Keyword(s):  
Economic Growth ◽  
Economic Development ◽  
Fiscal Policy ◽  
Political Stability ◽  
The Government ◽  
High Level ◽  
National Governments ◽  
Sustainable Economic Growth ◽  
The Impact

To achieve prosperity and political stability, national governments aimed at achieving economic equilibrium. The government uses various instruments to stimulate economic growth, reduce unemployment and to achieve macroeconomic objectives. In the context of slow economic growth in recent years and fiscal pressures, Kosovo faces the complex challenge of economic development. Unemployment remains at a high level. Demand for labor is still very low and create an environment that will favor the formation of stable work places is a challenging task that requires a multidimensional reforms in the economy. This paper addresses the impact of fiscal policy on reducing unemployment, increasing investment and consumption to generate sustainable economic growth.

Fair Value Accounting for Non-Current Assets and its Role in Determining Auditing Fees

2021 ◽  
Vol 22 (2) ◽  
Author(s):  
Hanady Alshdaifat ◽  
Nidal Zalloum
Keyword(s):  
Corporate Governance ◽  
Fixed Effects ◽  
Audit Fees ◽  
Fair Value ◽  
Board Independence ◽  
Fixed Effects Model ◽  
Valuation Methods ◽  
Industrial Companies ◽  
The Impact

The study aimed to identify the role of non-current assets’ fair value in determining audit fees, in addition to studying the impact of non-current assets’ fair value on audit fees. This was achieved through different valuation methods and the corporate governance represented by board independence for the period of 2013 to 2018. The study included 50 industrial companies listed on the ASE. 'The panel data was processed using the fixed effects model, and the study found that there is a reverse effect of the non-current assets’ fair value on the audit fees. Furthermore, the study found a difference in the non-current assets’ fair value on audit fees through corporate governance represented by the independent board of directors as well as a difference in the non-current assets’ fair value on audit fees by different fair value valuation methods measured at the first, second and third levels.

scholarly journals The Impact of Fintech on Corporate Technology Innovation Based on Driving Effects, Mechanism Identification, and Heterogeneity Analysis

2021 ◽  
Vol 2021 ◽  
pp. 1-12
Author(s):  
Jianwei Li ◽  
Na Li ◽  
Xiang Cheng
Keyword(s):  
Artificial Intelligence ◽  
Technological Innovation ◽  
Fixed Effects ◽  
Emerging Technologies ◽  
Innovation Policy ◽  
Policy Support ◽  
Real Economy ◽  
Fixed Effects Model ◽  
The Government ◽  
The Impact

Fintech relies on emerging technologies such as artificial intelligence and big data to bring a new business model to the financial system; can this new change promote corporate technological innovation? To explore this question, this paper examines the possible impact mechanism of Fintech on enterprise technological innovation based on the examination of the impact of Fintech on enterprise technological innovation through a panel fixed effects model, using A-share listed enterprises in Shanghai and Shenzhen markets in China from 2011–2019, and further explores whether there is heterogeneity in this impact among enterprises with different traits. The results show that Fintech development can significantly promote firm technological innovation and that Fintech can influence firm technological innovation through two mechanisms: alleviating firm financing constraints and providing market opportunities for firms to enhance their profitability. In addition, the driving effect of Fintech on technological innovation is more pronounced in new firms, state-owned enterprises, and nonborrowed and listed firms. Based on the conclusion, it is proposed that the government should enhance certain policy support for Fintech guided by emerging technologies such as artificial intelligence, help Fintech empower the real economy, and at the same time promote the deep integration of Fintech and real enterprises, especially to strengthen the identification of Fintech for new enterprises and encourage state-owned enterprises to implement employee stock ownership system, as well as sound market construction to reduce barriers to listing of high-quality enterprises, so as to improve innovation policy effectiveness and provide a reference for the mitigation of enterprise innovation problems in the new situation.

Dampak Kebijakan Moneter Pada Output Di Negara-Negara ASEAN Tahun 1980-2014

2017 ◽  
Vol 4 (1) ◽  
pp. 58-70
Author(s):  
Nur Widiastuti
Keyword(s):  
Monetary Policy ◽  
Interest Rate ◽  
Fixed Effects ◽  
Empirical Studies ◽  
Negative Relationship ◽  
Least Square ◽  
Fixed Effects Model ◽  
State Data ◽  
Ordinary Least Square ◽  
The Impact

The Impact of monetary Policy on Ouput is an ambiguous. The results of previous empirical studies indicate that the impact can be a positive or negative relationship. The purpose of this study is to investigate the impact of monetary policy on Output more detail. The variables to estimatate monetery poicy are used state and board interest rate andrate. This research is conducted by Ordinary Least Square or Instrumental Variabel, method for 5 countries ASEAN. The state data are estimated for the period of 1980 – 2014. Based on the results, it can be concluded that the impact of monetary policy on Output shown are varied.Keyword: Monetary Policy, Output, Panel Data, Fixed Effects Model

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