scholarly journals Two Rival Views of Economy in “Zaiko-Ronso” － On the relation between the Economic Growth and the Business Cycle

2015 ◽  
Vol null (68) ◽  
pp. 657-678
Author(s):  
사토 다이사쿠
Keyword(s):  
Economic Growth ◽  
Business Cycle ◽  
The Business Cycle

Government spending shocks and economic growth: additional evidence from cyclical behavior of fiscal policy

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Olumide Olusegun Olaoye ◽  
Ukafor Ukafor Okorie ◽  
Oluwatosin Odunayo Eluwole ◽  
Mahmood Butt Fawwad
Keyword(s):  
Economic Growth ◽  
Business Cycle ◽  
Government Spending ◽  
Generalized Method Of Moments ◽  
The State ◽  
Fiscal Policies ◽  
Asymmetric Effect ◽  
Content Type ◽  
Spending Shocks ◽  
The Business Cycle

PurposeThis study examines the asymmetric effect of government spending on economic growth in Nigeria over the period 1980–2017. Specifically, this study investigates whether the response of economic growth to government spending shocks differs according to the nature of shocks on them. In addition, the authors examine whether the stabilizing effects of fiscal policies are dependent on the state of the business cycle.Design/methodology/approachThe study adopts the linear fiscal reaction function in addition to the nonlinear regression model of Hatemi-J (2011, 2012), Granger and Yoon (2002), which allows us to separate negative shocks from positive shocks to government spending. Similarly, the authors adopt the generalized method of moments (GMM) techniques of Hansen (1982) to account for simultaneity and endogeneity problems inherent in dynamic model.FindingsThe authors’ findings reveal that there is evidence of asymmetry in the government spending–economic growth nexus in Nigeria over the period of study. Specifically, the authors find that the response of economic growth to government spending shocks differs according to the nature of shocks on them. More specifically, the study established that the stabilizing effects of fiscal policies are dependent on the state of the business cycle.Originality/valueUnlike the traditional method of modeling asymmetry, which adopts the simple inclusion of a squared government spending term or by the inclusion of a cubic government spending term, the model adopted in this study allows us to model shocks and show how the responses of economic growth to government expenditure differ according to the nature of shocks on them.

Introduction

2021 ◽  
pp. 1-6
Author(s):  
Jesper Rangvid
Keyword(s):  
Economic Growth ◽  
Business Cycle ◽  
Stock Returns ◽  
Economic Activity ◽  
Final Part ◽  
Stylized Facts ◽  
Long Run ◽  
Key Concepts ◽  
The Business Cycle

Chapter 1 contains an overview of the book. Part I introduces key concepts, definitions, and stylized facts regarding long–run economic growth and stock returns.Part II analyses the relation between economic growth and stock returns in the long run. Part III examines the shorter-horizon relation between economic growth and stock returns: the relation over the business cycle. Part IV explains how to make reasonable projections for economic activity, both for the short and the long run. Part V deals with expected future stock returns. The final part, a short one including one chapter only, explains how one can use the insights from the book when making investments.

The Maquiladora Industry: Recent Downturn And Future Prospects

2011 ◽  
Vol 8 (3) ◽  
Author(s):  
Javad Gorjidooz ◽  
Bijan Vasigh
Keyword(s):  
United States ◽  
Economic Growth ◽  
Business Cycle ◽  
Labor Demand ◽  
The United States ◽  
Global Competition ◽  
Bracero Program ◽  
Major Player ◽  
The Business Cycle ◽  
The U.S

The Maquiladora industry was created in the mid-1960 as the United States terminated the Bracero program. The main objective of the Bracero program was to bring in Mexican workers to fulfill U.S. agricultural labor demand. The end of the Bracero program left thousands of unemployed farm workers in Mexican cities bordering the U.S. The Maquiladora programs intent was to subsidize foreign manufacturers that set up plants on the Mexico side of the border to create jobs for the Mexican workers. Mexico allowed plants to temporarily import supplies, parts, machinery, and equipment necessary to produce goods and services in Mexico duty-free as long as the output was exported back to the United States. U.S. firms, as well as other multinational companies, responded enthusiastically to the lure of cheap labor. Mexico experienced high economic growth and become a major player in exporting intra-industry products to the U.S. The NAFTA and other free trade agreements signed by Mexico helped the economic growth of the Maquiladora region. Maquiladora employment increased significantly since the inception of the Maquiladora industry and Maquiladora exports now account for half of Mexicos total exports. The Maquiladora industry is U.S.-demand driven since most of Mexicos Maquiladora production is destined for the U.S. market. The recent recession in the U.S. took a heavy toll on Mexicos Maquiladora industry. Another challenge to the Maquiladora industry is raising global competition, particularly from China. Therefore, the magnitude of the industrys contraction during the most recent recession suggests that there are more factors influencing the industry than just the business cycle. This paper presents the creation of the Maquiladora industry, its success following the NAFTA agreement, and its recent downturn. It also explores the answers to the following questions: How much of the Maquiladora downturn was due to the business cycle? How much was due to structural change? Is the Maquiladora industry ready to face rising global competition?

Venezuela

2017 ◽  
Author(s):  
Guillermo Cruces ◽  
Gary S. Fields ◽  
David Jaume ◽  
Mariana Viollaz
Keyword(s):  
Economic Growth ◽  
Social Security ◽  
Business Cycle ◽  
Labour Market ◽  
Early Years ◽  
International Crisis ◽  
Occupational Position ◽  
The Business Cycle

Venezuela experienced slow economic growth during the 2000s. The economy suffered a recession in the early years of the period and during the international crisis of 2008, but most labour market indicators improved and moved along with the business cycle over the period. The chapter shows that the only indicators that did not improve were the composition of employment by occupational position and the percentage of workers registered with social security, which remained essentially unchanged. Most of the labour market indicators were affected negatively by the international crisis, and some of them had not recovered their pre-crisis levels by 2012.

Economic Performance, Poverty, and Inequality in Rich Countries

2017 ◽  
Author(s):  
David Brady ◽  
Markus Jäntti
Keyword(s):  
Economic Growth ◽  
Business Cycle ◽  
Economic Performance ◽  
Macroeconomic Fluctuations ◽  
Macroeconomic Performance ◽  
Unemployment Rates ◽  
Poverty And Inequality ◽  
Per Capita ◽  
The Business Cycle ◽  
Rich Countries

This article explores the interrelationships among poverty, economic performance, and inequality in rich countries. It argues that poverty rises and falls with the business cycle and economic performance. Business cycle refers to macroeconomic fluctuations in economic growth, unemployment, and employment. Higher economic growth and lower unemployment rates mean more individuals employed. Because a job is one of the most effective ways to remove a household from poverty, macroeconomic performance should directly influence individual poverty. This article first describes the statistical models used to estimate the effects of economic performance on poverty before reviewing studies that assess the effects of economic performance on poverty and income inequality. In terms of economic performance, it analyzes the effects of the business cycle, economic growth, unemployment rates, and GDP per capita.

scholarly journals Research on electric power development and economic growth in Hebei Province based on business cycle analysis

2021 ◽  
Vol 248 ◽  
pp. 02033
Author(s):  
Miao Liang ◽  
Meng Chen ◽  
Yan Li ◽  
Xiaomin Xu ◽  
Dongxiao Niu
Keyword(s):  
Economic Growth ◽  
Power Generation ◽  
Business Cycle ◽  
Electric Power ◽  
Power Industry ◽  
Hebei Province ◽  
Electricity Power ◽  
The Business Cycle ◽  
Business Cycle Analysis ◽  
Prosperity Index

With the improvement of China’s electrification level, the relationship between electricity power consumption and social economy development is getting closer. Under this background, in this paper, the business cycle analysis method is applied to the electricity power industry in Hebei Province, and the link between electric power generation and economic development is determined through the prosperity index. First of all, the steps and methods of business cycle analysis were introduced, and the time-difference grey correlation method considering the consistency of time series to screen indicators was put forward, thus to reduce the number of indicators. Next, Hebei Province was taken as an example, and its monthly data related to power generation and economic growth in the 10 years from 2009 to 2018 to was selected to build the business cycle indicator system, at last the composite prosperity index of Hebei Province in electric power industry was calculated. This research results manifest that it is feasible to apply the business cycle analysis to the power industry.

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