scholarly journals Foreign Trade Liberalisation and Economic Growth: The Case of the Republic of Srpska

ECONOMICS ◽  
2019 ◽  
Vol 7 (2) ◽  
pp. 99-108
Author(s):  
Goran Popović ◽  
Ognjen Erić ◽  
Srđa Popović
Keyword(s):  
Economic Growth ◽  
Regression Analysis ◽  
Foreign Trade ◽  
Trade Deficit ◽  
Trade Liberalisation ◽  
Gdp Growth ◽  
Total Trade ◽  
The Republic ◽  
The Impact

Abstract This paper assesses the impact of trade liberalisation on the economic growth of the Republic of Srpska (RS). The aim of the research is to prove the hypothesis that trade liberalisation and export orientation positively impact on GDP growth. RS has characteristically small and open economies. The degree and character of the connections between the observed variables was determined by means of regression analysis. Regression analysis indicates that there is a positive connection between the total trade and GDP growth. Further, there is a marked positive correlation between export and GDP, that is, export growth contributes to GDP growth. Foreign trade deficit stands in a negative correlation with GDP. Lastly, regression analysis points to the connection between the Republic of Srpska economic growth and openness of its economy. However, uncontrolled opening and exposure to foreign competitiveness can also bring about problems which in certain circumstances lead to long-term macroeconomic instability.

scholarly journals Taxation, government spending and economic growth: The case of Bulgaria

2021 ◽  
Vol 7 (3) ◽  
pp. 255-266
Author(s):  
G. Ganchev ◽  
◽  
I. Todorov ◽  
Keyword(s):  
Economic Growth ◽  
Growth Rate ◽  
Tax Revenue ◽  
Gdp Growth ◽  
Real Gdp ◽  
Long Run ◽  
Gdp Growth Rate ◽  
Short Run ◽  
The Impact

The objective of this article is to estimate the impact of three fiscal instruments (direct taxes, indirect taxes, and government expenditure) on Bulgaria’s economic growth. The study employs an autoregressive distributed lag model (ARDL) and Eurostat quarterly seasonally adjusted data for the period 1999–2020. Four control variables (the shares of gross capital formation, household consumption, and exports in GDP as well as the economic growth in the euro area) are included in the model to account for the influence of non-fiscal factors on Bulgaria’s real GDP growth rate. The empirical results indicate a long-run equilibrium relationship between Bulgaria’s economic growth and the independent variables in the ARDL. In the short term, Bulgaria’s real GDP growth rate is affected by its own past values and the previous values of the shares of direct tax revenue, exports, government consumption, and indirect tax revenue in GDP. In the long term, Bulgaria’s economic growth is influenced by its own previous values and the past values of the share of household consumption in GDP and the euro area’s real GDP growth rate. Fiscal instruments can be used to stabilize Bulgaria’s growth in the short run but they are neutral in the long run. The direct tax revenue, government consumption, and indirect tax revenue are highly effective and can be used as tools for invigorating and stabilizing Bulgaria’s economic growth in the short run. However, in the long term, the real GDP growth rate can be hastened only by encouraging domestic demand (final consumption expenditure of households) and promoting exports. This research cannot answer the question of whether flat income taxation stabilizes the economy or not, since it does not separate the impact of tax rate changes from the influence of tax base modifications.

scholarly journals Assessment of foreign direct investment, export and economic growth on the example of Kazakhstan

2016 ◽  
Vol 13 (4) ◽  
pp. 130-135 ◽  
Author(s):  
Tolkyn Azatbek ◽  
Altay Ramazanov
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Regression Analysis ◽  
Direct Investment ◽  
Jel Classification ◽  
Method Of Calculation ◽  
Correlation And Regression Analysis ◽  
Net Exports ◽  
The Republic ◽  
The Impact

The article considers the problem of estimating the communication of foreign direct investment, net exports and economic growth. As an example, the Republic of Kazakhstan is taken. Based on the method of calculation of the gross domestic product (GDP) expenditure and using the method of regression analysis, the impact of foreign direct investment (FDI) and net exports to GDP and interaction of FDI and net exports as components of GDP are evaluated. Keywords: investment, FDI, GDP, net exports, economic growth, correlation and regression analysis. JEL Classification: А10, C20, C35, E22, F37, F43

scholarly journals PUBLIC DEBT AND ECONOMIC GROWTH – THE CASE OF THE REPUBLIC OF NORTH MACEDONIA

2021 ◽  
Vol 9 (21) ◽  
Author(s):  
Kristijan Kozheski ◽  
Predrag Trpeski ◽  
Marijana Cvetanoska ◽  
Gunter Merdžan
Keyword(s):  
Economic Growth ◽  
Public Debt ◽  
The Other ◽  
Gdp Growth ◽  
Successful Implementation ◽  
Domestic Investment ◽  
Causality Test ◽  
Per Capita ◽  
The Republic ◽  
The Impact

Establishing and maintaining macroeconomic stability and fiscal discipline on the one hand, and stimulating economic activity, by enhancing the quality of public finances, increasing capital expenditures, and enhancing competitiveness in the Macedonian economy, on the other hand, are two opposing objectives that should be pursued by policymakers. Government borrowing, especially foreign borrowing, is an important source of fixed assets to cover public expenditure. However, the sustainability of public debt depends not only on the level of public debt, but also on the structure and successful implementation of policies to boost economic growth. Borrowing for a country with low economic potential and a constant shortage of capital is inevitable, especially external borrowing. However, the structure, purpose of the assets and their multiplier effect on the overall economy are the main criteria for assessing the impact of public debt on the economy. This paper attempts to apply the econometric VAR analysis to examine the correlation and causal relationship between public debt and economic growth rate of the case of the Republic of North Macedonia for the period 2002 - 2017. The variables to be analyzed are: GDP growth per capita, Public debt as a proportion of GDP, Gross Domestic Investment, Interest Rate and Government Spending. For the purpose of this analysis, a Granger causality test has been conducted. The test results indicate that the impact of public debt growth in North Macedonia does not have a significant impact on GDP growth per capita. The other test that is being conducted is a Vector Error Correction Model which shows that public debt is negatively correlated with short run and long run economic growth.

The Impact of the COVID-19 Pandemic on the Tourism Economy

2021 ◽  
pp. 155-176
Author(s):  
Süleyman Şen ◽  
Süreyya Kovacı
Keyword(s):  
Regression Analysis ◽  
Panel Data ◽  
Foreign Trade ◽  
Stock Prices ◽  
Stock Price ◽  
Trade Deficit ◽  
Ols Regression ◽  
Panel Data Methods ◽  
Tourism Economy ◽  
The Impact

This chapter seeks to examine the impact of COVID-19 on the Turkish tourism economy. Towards this end, first of all, tourist arrivals and tourism income of Turkey were compared between pre-pandemic and within the pandemic period. Afterwards, to investigate whether COVID-19 leads to a decrease in stock prices of tourism firms, the return data of 11 firms listed in the Borsa Istanbul restaurants and hotels subsector for 10 months were examined by panel data methods. According to comparison of tourist arrivals and tourism income to the previous year, there was a vital decrease as 69% and 65% respectively in 2020. Moreover, coverage rate of foreign trade deficit of tourism income in Turkey decreased almost 80% in 2020. Overall, results of pooled OLS regression analysis revealed that COVID-19 cases and COVID-19-related deaths were decreasing monthly stock price returns. Based on these findings, it is recommended to policymakers to find better policies for a better tourism economy.

scholarly journals IMPACT OF INNOVATIONS UPON ECONOMIC GROWTH DURING RECESSION

2015 ◽  
Vol 21 (4) ◽  
pp. 626-642 ◽  
Author(s):  
Vytautas SNIESKA ◽  
Gitana VALODKIENE
Keyword(s):  
Economic Growth ◽  
Economic Recession ◽  
Household Consumption ◽  
Gdp Growth ◽  
Consumption Expenditure ◽  
Manufacturing Enterprises ◽  
Main Engine ◽  
The Impact

The role of the factors influencing economic growth during economic recessions and the role of these factors in separate economic phases are analysed. The purpose of the research is to assess the impact of innovations on economic growth during recession. The analysis of the situation in manufacturing sectors of Lithuania during economic recession in 2007 to 2009 has revealed several characteristics of innovations for this period due to which Lithuanian manufacturing enterprises managed to successfully function and remain competitive. The influence of household consumption expenditure on the growth of GDP in Lithuania is described by the function close to the linear, so we see a direct relation between these two variables. The influence of export on GDP is described by a convex function which has showed the declining influence of export on the GDP growth in the long-term perspective. Thus, contrary to a rather popular belief in transition countries, the main engine of growth in the long-term is not export. The long-term GDP growth is impossible without stimulating the growth in household consumption expenditure.

scholarly journals Correlation of human development and economic growth of the national economy

2021 ◽  
Vol 9 (1) ◽  
pp. 58-64
Author(s):  
Vladimir Đorđević ◽  
Milica Cvetković ◽  
Aleksandar Momčilović
Keyword(s):  
Economic Growth ◽  
Human Capital ◽  
Human Development ◽  
National Economy ◽  
Theory And Practice ◽  
Economic Science ◽  
The Republic ◽  
Future Education ◽  
The Impact

The area that causes great attention of economic science is the issue of growth and development. The impact of human resources on economic growth is of great importance. Human capital is the driver of the economic growth of any national economy, on the other hand, the state is the driver of education of its population. An important driver of development is education, i.e. investing in the education system, which further drives other macroeconomic variables. Both theory and practice are increasingly dealing with the issue of human capital, as important components and factors of the overall economic development of the national economy. Investments in education result in an increase in economic growth, this increase allows for greater investment in future education. Long-term economic growth determines the standard of living, which directly affects human development. The Human Development Index sublimates several parameters in itself and at the same time shows correlations between the economy, quality of life, and level of education in the country. The paper aims to point out the importance of human capital in economic science and practice through the paradigm of the concept of human development, following the trends of HDI in the Republic of Serbia and the surrounding countries.

scholarly journals Forecast of China’s economic growth during the COVID-19 pandemic: a MIDAS regression analysis

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Samet Gunay ◽  
Gökberk Can ◽  
Murat Ocak
Keyword(s):  
Economic Growth ◽  
Regression Analysis ◽  
Foreign Exchange ◽  
Ordinary Least Squares ◽  
Superior Performance ◽  
Alternative Methods ◽  
Mixed Data ◽  
Gdp Growth ◽  
Content Type ◽  
The Impact

Purpose This study aims to examine the effect of the COVID-19 pandemic in comparison to the global financial crisis (GFC) on the gross domestic product (GDP) growth rate of China. Design/methodology/approach Empirical analyses are conducted through alternative methods such as ordinary least squares, Markov regime switching (MRS) and mixed data sampling (MIDAS) regressions. The flexibility of MIDAS regression enables us to use different variables with quarterly (GDP), monthly (export sales and foreign-exchange reserves) and daily frequencies (foreign exchange rates and Brent oil price). Findings The results indicate that the COVID-19 pandemic has had a considerable negative effect on China’s GDP growth, while the dummy variables used for the GFC are found to be insignificant. Further, the forecast accuracy test statistics exhibited a superior performance from MIDAS regression compared to the alternative models, such as MRS regression analysis. According to the forecast results, the authors expect a recovery in China’s economic growth in the second quarter of 2020. Originality/value This is one of the earliest studies to examine the effect of the COVID-19 pandemic on the Chinese economy, and to compare the impact of COVID-19 with the GFC. The authors provide further evidence regarding the performance of MIDAS regression analysis vs alternative methods. Findings obtained shed light on policymakers, corporations and households to update their consumption, saving and investment decisions in the chaotic environment of this pandemic.

scholarly journals The Impact of CEO Long-term Equity-based Compensation Incentives on Economic Growth in Collectivist versus Individualist Countries

2016 ◽  
Vol 15 (2) ◽  
pp. 109-133 ◽  
Author(s):  
Cynthia J. Campbell ◽  
Rosita P. Chang ◽  
Jack C. DeJong ◽  
Robert Doktor ◽  
Lars Oxelheim ◽  
...  
Keyword(s):  
Economic Growth ◽  
Chief Executive ◽  
Gdp Growth ◽  
Real Gdp ◽  
The Impact ◽  
To Receive ◽  
Moderating Role ◽  
Compensation Incentives

This study examines the impact of the prevalence of long-term equity-based chief executive officer (CEO) compensation incentives on GDP growth, and we address the moderating role of individualist versus collectivist cultures on this relationship. We argue that long-term incentives given to CEOs in some firms may convey to other CEOs that they too may be able to receive such incentives and rewards if they emulate the incentivized and rewarded CEOs. In a longitudinal study across 22 nations over a 5-year period, we find that the higher proportion of CEOs in a country are awarded long-term equity-based incentive compensation, the greater future real GDP growth, particularly in collectivist countries.

scholarly journals The Impact of Trade Deficit in Nepalese Economy

2022 ◽  
Vol 10 (1) ◽  
pp. 73-88
Author(s):  
Ashmita Dahal Chhetri
Keyword(s):  
Economic Growth ◽  
Human Resources ◽  
Foreign Trade ◽  
Competitive Ability ◽  
Trade Deficit ◽  
Legal Framework ◽  
Export Ratio ◽  
Trading Partners ◽  
Policy Incentives ◽  
The Impact

The objective of this paper is to study and analyze the growth and direction of Nepalese foreign trade along with the causes and recommendations of trade deficit. Efforts have been made to sort out the principal sources of the trade deficit in Nepal. Landlockedness, political instability, lack of export diversification, devaluation of domestic currency, lack of resources, etc. are the major causes of the trade deficit in Nepal. Nepal, being not self-reliant on factors of production, consumer goods and capital goods, needs to import goods from abroad. On another hand, Nepal’s exports are heavily concentrated; both in terms of product and destination. Nepal’s major trading partners are India, China, U.A.E, etc. During the year 2019/20, Nepal exports goods worth RS. 97.71 Billion And import goods worth RS. 1196.80 billion Leading to a trade deficit of Rs.1099.09 Billion. Trade deficit is acting as negative catalyst in the economic growth and GDP of a country. Increased deficit has caused suppressed inflation. Import to export ratio is continuously increasing as demand is increasing and these demands could not be met by the domestic producers. During the year 2019/20, the contribution of trade on GDP of Nepal is 40.65%. No doubt, trade is an engine of economic growth. So, after analyzing barriers in the foreign trade, some of the steps to be taken are recommended which includes the development of competitive ability and enhancement of Human Resources, commodity and market diversification, formulation of strong legal framework and trade policy, incentives for the promotion of export and priority in the agricultural and hydropower sectors.

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