scholarly journals Relationship Among Institutional Quality, Tax Revenue and Economic Growth at Provincial Level: Evidence from Vietnam

2016 ◽  
Vol 6 (9) ◽  
pp. 228-239
Author(s):  
Lien, Nguyen Phuong
Keyword(s):  
Economic Growth ◽  
Method Of Moments ◽  
Institutional Quality ◽  
Tax Revenue ◽  
Quality Indices ◽  
Method Of Moments Estimation ◽  
Generalised Method Of Moments ◽  
The Relationship ◽  
Estimation Models

To investigate the relationship among institutional quality, tax revenue, and economic growth in Vietnam, this work applies the Granger test for a panel data of 60 provinces in Vietnam during the period 2006 - 2014. In addition, using the two-step system generalised method of moments estimation supports this study to evaluate the degree of impact of interaction between quality of institutions and tax revenue on economic growth in more detail. The results provide a bi-direction causal linkage among the mentioned variables and discover that tax revenue has significantly positive impacts on economic growth. On the other hand, the effect on growth of economy of the ten institutional quality indices is diverse. The data also indicated convergence in all estimation models as suggested by classical theories of economic growth.

scholarly journals Economic growth and quality of institutions in 27 postsocialist economies

2020 ◽  
Vol 47 (4) ◽  
pp. 769-787
Author(s):  
Constantinos Alexiou ◽  
Sofoklis Vogiazas ◽  
Nikita Solovev
Keyword(s):  
Economic Growth ◽  
Panel Cointegration ◽  
Institutional Quality ◽  
Supporting Evidence ◽  
Causality Analysis ◽  
Content Type ◽  
Long Run ◽  
Quality Of Institutions ◽  
The Relationship

PurposeThe relationship between institutional quality and economic growth is revisited.Design/methodology/approachA panel cointegration methodology and causality analysis are applied to 27 postsocialist economies over the period from 1996 to 2016.FindingsUtilizing the Worldwide Governance Indicators as a means of assessing the quality of institutions, it is found that in the long run, economic growth is positively associated with the rule of law and voice and accountability. In the short run, regulatory quality retains a positive effect, but voice and accountability demonstrate a puzzling negative effect on economic growth that merits further analysis. In exploring the causal dimension of our variables, supporting evidence of the strong links between the quality of institutions and economic growth is provided, hence rendering robust results.Originality/valueTo the best of the authors’ knowledge, it is the first time that an ARDL methodological framework, which addresses potential endogeneity issues, is used to investigate the relationship between institutional quality and growth in the context of postsocialist economies.

scholarly journals Tariffs, Trade and Economic Growth in a Model with Institutional Quality

2011 ◽  
Vol 16 (2) ◽  
pp. 31-54
Author(s):  
Azam Chaudhry
Keyword(s):  
Economic Growth ◽  
Institutional Quality ◽  
Stages Of Development ◽  
Export Sector ◽  
Weak Institutions ◽  
Long Run ◽  
Innovation Sector ◽  
The Government ◽  
The Relationship

This article shows how institutional quality can affect the relationship between trade and growth. Our model looks at an economy in which the export sector is a high-innovation sector. In this economy, a government that is politically threatened by innovation can use its tariff policy to block innovation and increase domestic revenues. In this case, higher tariffs reduce economic growth and the government faces a tradeoff: It can either (i) raise tariffs, collect greater rents, and increase stability; or (ii) it can reduce tariffs and increase long-run growth and instability. When the quality of a country’s institutions are reflected in the costs of increasing tariffs, it can be shown that countries with strong institutions gain more (in terms of growth) from trade than countries with weak institutions, due to the effect of institutions on trade policy. It is also possible to show that the quality of institutions in one country can spill over into another by affecting its trading partner’s growth rate of income. However, these results are reversed in the case where a country has a highly innovative domestic sector—this explains the tariff-growth paradox in which countries experience higher growth with higher tariffs in earlier stages of development, but higher growth with lower tariffs in later stages of development.

Social globalisation and quality of democracy: An analysis for old and young democracies

2021 ◽  
pp. 136914812199444
Author(s):  
Marketa Jerabek
Keyword(s):  
Cold War ◽  
Method Of Moments ◽  
Freedom Of Expression ◽  
Equal Access ◽  
Quality Of Democracy ◽  
Post Cold War ◽  
Method Of Moments Estimation ◽  
Generalised Method Of Moments ◽  
Interpersonal Information

The literature on globalisation and democracy has primarily paid attention to economic integration and its effects on democracies. Systematic empirical evidence on the effects of social globalisation on democracy is absent. This article intends to fill this gap. Social globalisation is disaggregated into interpersonal, information and cultural globalisation. I apply the generalised method of moments estimation and analyse democracies encompassing the periods 1970–1991 and 1991–2017. The results indicate that the democratic qualities affected by social globalisation are freedom of expression, equal access and protection, and the quality of elections. The moderating effect of a given country’s democracy stock has been confirmed across different estimations. However, and especially during the post–Cold War period, younger and older democracies benefit equally from the increased spread of information caused by globalisation with regard to equal access. Equally, both categories experience similar challenges with the rise of interpersonal globalisation in terms of the quality of elections.

Investigating Okun’s Law in Nigeria through the Dynamic Model

2018 ◽  
Vol 9 (6) ◽  
pp. 39-46
Author(s):  
Patrick Olufemi ADEYEYE ◽  
Anthonia T. ODELEYE ◽  
Olufemi Adewale ALUKO
Keyword(s):  
Economic Growth ◽  
Dynamic Model ◽  
Method Of Moments ◽  
Unemployment Rate ◽  
Generalized Method Of Moments ◽  
Output Growth ◽  
Causality Test ◽  
Policy Tool ◽  
Method Of Moments Estimation ◽  
The Relationship

 Unemployment is a persistent challenge for countries, especially the developing ones. Nigeria as a developing country faces a herculean task reducing the increasing spate of joblessness amongst her citizens. Okun’s law explains the relationship between unemployment and economic growth in an economy. This study therefore investigates Okun’s law in Nigeria between 1985 and 2015 through the dynamic model. The generalized method of moments estimation result reveals that that present and past output growth are negatively related to unemployment rate. However, only past output growth has a significant effect on unemployment rate. It also shows that past unemployment rate is significantly and positively associated with present unemployment rate. The Toda-Yamamoto Granger non-causality test finds that there is no causality between unemployment and economic growth. This study presents evidence to partially support Okun’s law of inverse relationship between unemployment and output growth and suggests that promoting economic growth can be a policy tool for reducing unemployment rate in Nigeria. 

GOVERNMENT SPENDING AND ECONOMIC GROWTH RELATIONSHIP: CAN A BETTER INSTITUTIONAL QUALITY FIX THE OUTCOMES?

2020 ◽  
pp. 1-23
Author(s):  
MUHAMMAD KHAN ◽  
SAQLAIN RAZA ◽  
XUAN VINH VO
Keyword(s):  
Economic Growth ◽  
Fixed Effects ◽  
Developing Economies ◽  
Public Spending ◽  
Institutional Quality ◽  
Output Growth ◽  
Long Run ◽  
Empirical Growth ◽  
The Relationship

Empirical growth literature finds conflicting results on the relationship between public spending and long-run economic growth. This paper shows that the nature of relationship between the two variables depends upon the institutional quality of a country. Our empirical investigation relies upon OLS, fixed-effects and system-GMM estimators for a large panel of 113 developed and developing economies during the period 1981–2015. The main findings confirm that the adverse impact of public size on output growth holds only for countries with poor institutional quality. By contrast, when the institutional quality exceeds certain thresholds, the growth inhibiting effects of government size become insignificant. From the fiscal policy viewpoint, these outcomes imply that the productivity of public spending is more important than an excessively large public size of the country.

scholarly journals The joint impact of infrastructure and institutions on economic growth

2020 ◽  
Vol 16 (4) ◽  
pp. 481-502
Author(s):  
Yitagesu Zewdu Zergawu ◽  
Yabibal M. Walle ◽  
José-Manuel Giménez-Gómez
Keyword(s):  
Economic Growth ◽  
Method Of Moments ◽  
Generalized Method Of Moments ◽  
Institutional Quality ◽  
Explanatory Variables ◽  
Interaction Terms ◽  
Large Panel ◽  
Simple Growth ◽  
Moments Estimators

AbstractThis paper examines the joint impact of infrastructure capital and institutional quality on economic growth using a large panel dataset covering 99 countries and spanning the years 1980–2015. The empirical strategy involves estimating a simple growth model where, in addition to standard controls, infrastructure, institutional quality, and their interaction are included as explanatory variables. Potential endogeneity concerns are addressed by employing generalized method of moments estimators that utilize internal instruments. We find that the interaction terms between infrastructure capital and institutional quality show a positive and significant impact on economic growth. These results are robust to a variety of alternative specifications and institutional quality measures. Hence, our results suggest that maximizing returns from infrastructure capital requires improving the quality of institutions.

INTELLECTUAL PROPERTY RIGHTS, INSTITUTIONAL QUALITY AND ECONOMIC GROWTH

2012 ◽  
Vol 03 (01) ◽  
pp. 1240005 ◽  
Author(s):  
LEWIS S. DAVIS ◽  
FUAT ŞENER
Keyword(s):  
Economic Growth ◽  
Intellectual Property ◽  
Property Rights ◽  
Intellectual Property Rights ◽  
Institutional Quality ◽  
Schumpeterian Growth ◽  
Welfare Implications ◽  
Growth Equilibrium ◽  
The Relationship

We consider intellectual property rights (IPRs) in a Schumpeterian growth model in which patent holders face the threats of profit loss due to imitation and complete valuation loss due to outside innovation. We disaggregate IPR policies by distinguishing between the quality of the IPR regime and the intensity of IPR enforcement. An increase in the quality of the IPR regime unambiguously promotes growth. However, the relationship between IPR enforcement intensity and growth follows an inverted U-shaped curve. The growth-maximizing intensity of IPR enforcement is decreasing in institutional quality. We also investigate the model's welfare implications and examine the economy under a no-growth equilibrium.

scholarly journals A look-back to the relationship between economic growth and social equality in Vietnam thirty years after the renovation

2014 ◽  
Vol 17 (2) ◽  
pp. 95-104
Author(s):  
Tinh Phu Tran Do ◽  
Duyen My Pham ◽  
Huyen Thanh Nguyen ◽  
Nen Van Nguyen
Keyword(s):  
Economic Growth ◽  
Poverty Alleviation ◽  
Growth Process ◽  
Social Equity ◽  
Living Standard ◽  
Health Care Education ◽  
Social Equality ◽  
Look Back ◽  
The Relationship

This paper focuses on analyzing the achievements and limitations of Vietnam in the implementation of social equity in the economic growth process after the renovation in 1986. Economic growth generated capital to invest in social welfare, more income and opportunities for people to enjoy a prosperous life. However, besides above achievements, there still remain many limitations, such as: unsustainable development in income, living standard and poverty alleviation; low quality of health care, education and entertainment services. Based on the analysis of the causes of the limitations, this paper proposed the orientations for solving the relationship between the economic growth and social equality in Vietnam in the future.

scholarly journals The Relationship between Tax Revenue and Economic Growth in Nepal: A Co-integration Approach

2018 ◽  
Vol 11 (1) ◽  
pp. 28-36
Author(s):  
Gautam Maharjan
Keyword(s):  
Economic Growth ◽  
Error Correction ◽  
Unit Root ◽  
Unit Root Test ◽  
Error Correction Model ◽  
Series Data ◽  
Tax Revenue ◽  
Correction Model ◽  
The Impact ◽  
The Relationship

The main objective of this paper is to examine the relationship between tax revenue and economic growth in Nepal. The 43 years' annual time series data from 1974/75 to 2016/17 of GDP, tax revenue and nontax revenue have been used to test the causal relationship of the variables. A unit root test, Engle-Granger’s co-integration and Error Correction Model have been applied for the data analysis. The variables have been found stationary after first differencing I(1) when Augmented Dickey-Fuller unit root test is employed. From Engel-Granger test, it has been found that the variables are co-integrated. The short-term coefficients are not significant, however error correction term (ECT) is significant and contains a negative sign in the error correction model (ECM). It validates the ECM model. The ECT has shown that the annual speed of adjustment from disequilibrium to equilibrium is 34.3 percent. So far as the relationship is concerned, there is a long run relationship between tax revenue and economic growth in Nepal controlling the non-tax revenue. The impact of tax revenue on economic growth could be a good impetus for the policy maker and planner to increase the collection of revenue for the country.

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