scholarly journals Econometric Analysis of the Relationship Between Innovation and Foreign Trade Distance in Central and Eastern Europe Countries

2020 ◽  
Vol 20 (1) ◽  
pp. 360-372
Author(s):  
Marcin Salamaga
Keyword(s):  
Data Model ◽  
Central And Eastern Europe ◽  
Dynamic Panel Data ◽  
Dynamic Panel ◽  
Technological Gap ◽  
Export Competitiveness ◽  
The Impact ◽  
The Relationship ◽  
Technology Industries ◽  
High Technology Industries

AbstractResearch background: Posner’s technology gap theories and Vernon’s product life cycle assume that differences in innovation and technology levels are the cause of foreign trade. These theories are subject to empirical verification. To date, however, the analysis of the impact of innovation distance on a country’s export competitiveness is omitted. This article tries to fill this research gap. The author attempts to examine the relationship between the innovation gap and export competitiveness in industries with varying levels of technological advancement.Purpose: The aim of the article is to research the direction and strength of the impact of the innovation gap on export competitiveness in 10 different industries in Central and Eastern Europe countries (CEECs).Research methodology: Dynamic panel models were used in the research, which describe the impact of the technological gap on the export competitiveness of countries. To measure innovation, the indicator of innovative comparative advantage was constructed and based on the number of patents used. The technological gap in individual countries was calculated as the Euclidean distance indicators of the innovative advantage in a given country from other countries.Results: In light of the presented results of the study, it can be concluded that innovation generally has a significant and positive impact on the competitiveness of exports in the high and medium-high technology industries of the CEECs, while it does not significantly affect the competitiveness of trade in low technology industries. In addition, the Visegrad countries in the high and medium-high technology industries generally have a low technological gap and a smaller distance in export competitiveness using the dynamic panel data model.Novelty: The added value of this article is an innovative study on the impact of the technological gap on export competitiveness with the example of the CEECs using the dynamic panel data model.

scholarly journals The Role of Urbanization Rate in the Relationship between Air Pollution and Health Expenditures: A Dynamic Panel Data Approach

2015 ◽  
Vol 53 ◽  
pp. 68-72 ◽  
Author(s):  
Maryam Fattahi
Keyword(s):  
Air Pollution ◽  
Generalized Method Of Moments ◽  
Health Expenditures ◽  
Dynamic Panel Data ◽  
Dynamic Panel ◽  
Public And Private ◽  
Urbanization Rate ◽  
The Impact ◽  
The Relationship

One of the available challenges in areas of health economics is identification of the effective factors on health expenditures. Air pollution plays important role in the public and private health expenditure but most studies have ignored the role of this category in explanation of health expenditures. On the other hand, the impact of air pollution on health expenditures is influenced by several factors. This study intends to investigate the effect of air pollution on public and private health expenditures and to identify the urbanization rate factor affecting the relationship between air pollution and public and private health expenditures. Scope of the present study is developing countries over period of 1995-2011. We used a dynamic panel and Generalized Method of Moments method. The empirical results indicate that air pollution has positive and significant effect on public and private health expenditures. Also, the results imply that urbanization rate affecting the relationship between air pollution and health expenditures that urbanization rate plays a reinforcing role.

scholarly journals Impact of credit risk (NPLs) and capital on liquidity risk of Malaysian banks

2017 ◽  
Author(s):  
Yaman Hajja
Keyword(s):  
Credit Risk ◽  
Commercial Banks ◽  
Positive Relationship ◽  
Liquidity Risk ◽  
Dynamic Panel Data ◽  
Bank Capital ◽  
Dynamic Panel ◽  
Macroeconomic Variables ◽  
The Impact ◽  
The Relationship

We investigate the relationship between bank liquidity risk and credit risk and the impact of bank capital on liquidity risk. Using 19 Malaysian commercial banks data over 2002-2011 and applying dynamic panel data GMM estimation after controlling for bank-specific and macroeconomic variables, empirical results document a positive relationship between liquidity and credit risk and a non-linear U-shaped relationship between bank capital and liquidity risk.

scholarly journals An econometric study of the role of the political stability on the relationship between democracy and economic growth

2020 ◽  
Vol 67 (2) ◽  
pp. 187-206
Author(s):  
Nedra Baklouti ◽  
Younes Boujelbene
Keyword(s):  
Economic Growth ◽  
Data Model ◽  
Generalized Method Of Moments ◽  
Political Stability ◽  
Dynamic Panel Data ◽  
The Political ◽  
Dynamic Panel ◽  
Mena Countries ◽  
The Relationship

This article examines the nexus between democracy and economic growth while taking into account the role of political stability, using dynamic panel data model estimated by means of the Generalized Method of Moments (GMM) over the period 1998 to 2011 for 17 Middle East and North Africa (MENA) countries. Our empirical results showed that there is a bidirectional causal relationship between democracy and economic growth. Moreover, it was found that the effect of democracy on economic growth depends on the political stability. The results also indicated that there is important complementarity between political stability and democracy. In fact, political stability is a key determinant variable of economic growth. Eventually, democracy and political stability, taken together, have a positive and statistically significant effect on economic growth. This finding suggests that, if accompanied by a stable political system, democracy can contribute to the economic growth of countries. Thus, the MENA governments should use policies to promote political stability in the region.

scholarly journals Connotation among Structure, Conduct, and Performance: A Panel Data Analysis of Selected Financial Firms in Pakistan

2017 ◽  
pp. 78-101
Author(s):  
Muhammad Jamil Et al.,
Keyword(s):  
Panel Data ◽  
Data Model ◽  
Panel Data Analysis ◽  
Positive Association ◽  
Dynamic Panel Data ◽  
Panel Data Models ◽  
Dynamic Panel ◽  
Financial Firms ◽  
And Performance ◽  
The Relationship

The study of Structure, Conduct, and Performance (SCP) paradigm is important to evaluate the performance of firms. The study scrutinizes the relationship among SCP paradigm of selected financial firms (Banks, Insurance, Modaraba and Exchange companies) in Pakistan. Panel data of 103 financial firms of Pakistan from 2007 to 2015 is employed for this purpose. Various models of panel data have been employed to find the more parsimonious one. It is concluded that there is positive association among SCP using panel data models and dynamic panel data model. It is recommended that all firms are needed to enhance their management regarding expenditures and they also need to increase the number of shareholders to boost the firm’s performance

Civil liberty and economic growth in the world: a long-run perspective, 1850–2010

2014 ◽  
Vol 10 (3) ◽  
pp. 427-449 ◽  
Author(s):  
JAVIER ALFONSO-GIL ◽  
MARICRUZ LACALLE-CALDERÓN ◽  
ROCÍO SÁNCHEZ-MANGAS
Keyword(s):  
Economic Growth ◽  
Data Model ◽  
Civil Liberty ◽  
Civil Liberties ◽  
Dynamic Panel Data ◽  
Dynamic Panel ◽  
Long Run ◽  
Sensitivity Tests ◽  
Economic Growth Rates ◽  
The Relationship

Abstract:The objective of this paper is to study the relationship between economic growth and civil liberty across the globe in the long run. To fulfill this aim, we use an unbalanced panel of 149 countries for the period 1850–2010 with data on gross domestic product (GDP) from Maddison, and data on civil liberties from Polity IV. The dynamics of both variables are investigated. Once country and time effects are accounted for in a dynamic panel data model, our results show that movements toward higher levels of civil liberty are associated with higher economic growth rates. Therefore, we find that civil liberties are a relevant factor to explain economic growth. We perform some sensitivity tests that confirm the robustness of our results.

scholarly journals Common currency, common identity? The impact of the Euro introduction on European identity

2020 ◽  
pp. 146511652097028
Author(s):  
Fedra Negri ◽  
Francesco Nicoli ◽  
Theresa Kuhn
Keyword(s):  
European Union ◽  
Political Institutions ◽  
Data Model ◽  
Dynamic Panel Data ◽  
European Identity ◽  
The European Union ◽  
Collective Identities ◽  
Dynamic Panel ◽  
Dynamic Relationship ◽  
The Impact

Does European state building go hand in hand with European nation building? This article engages with the scholarly debate on the dynamic relationship between the construction of supranational political institutions that exert key functions of sovereignty and collective identities by investigating the extent to which the adoption of the Euro as a currency is associated with a decrease in the share of Europeans who identify exclusively with their nation and not with the European Union. In detail, by using a dynamic panel-data model on 26 European Union countries in the post-Maastricht period (1996–2017), our results show that the Euro has fostered European identity, leading to a small but significant decrease (-3%) in the share of Europeans with exclusive national identity.

An Application of GMM Method in the Test of Relationship between Urbanization and Circulation Economic Growth

2013 ◽  
Vol 712-715 ◽  
pp. 3207-3210
Author(s):  
Yue Xi Liu ◽  
Zhen Bo Zhang
Keyword(s):  
Economic Growth ◽  
Panel Data ◽  
Data Model ◽  
Dynamic Panel Data ◽  
Labor Input ◽  
Dynamic Panel ◽  
Dynamic Panel Data Model ◽  
Impact Of Urbanization ◽  
The Impact ◽  
Positive Effect

To explore the impact of urbanization and economic growth on the development of circulation industry, this paper uses GMM method to estimate dynamic panel data model, based on panel data at provincial-level from 2001 to 2010 in China, after testing the endogeneity of urbanization and economic growth. The findings indicate that regional economic development, labor input and fixed investment has significant positive effect on output of circulation, while lagged output of circulation and level of urbanization has no significant effect on it.

The impact of leverage on discretionary investment: African evidence

2018 ◽  
Vol 9 (1) ◽  
pp. 108-125 ◽  
Author(s):  
Edson Vengesai ◽  
Farai Kwenda
Keyword(s):  
Panel Data ◽  
Data Model ◽  
Cash Flows ◽  
Dynamic Panel Data ◽  
Investment Policy ◽  
Panel Data Model ◽  
Dynamic Panel ◽  
Content Type ◽  
Dynamic Panel Data Model ◽  
The Impact

Purpose The purpose of this paper is to explore the impact of leverage on firms’ discretionary investment in Africa. Design/methodology/approach The authors employ a dynamic panel data model estimated with generalised method of moments (GMM) estimation techniques on the panel data of listed African non-financial firms. A dynamic model and the generalised methods of moments estimations are handy in controlling for unobserved heterogeneity, endogeneity, autocorrelation, heteroscedasticity, etc. Findings In spite of different settings, markets, leverage levels and methodologies, the authors found evidence that leverage constrains investment in African firms. The negative impact is more pronounced in firms with low-growth opportunities than in firms with high-growth opportunities. The results are inclined to the theory that leverage plays a disciplinary role to avoid overinvestment. Research limitations/implications African firms’ investment policy does not solely depend on the neoclassical fundamentals determinants of profitability, net worth and cash flows. Financing strategy also has a considerable bearing on the investment policy. The results provide evidence that leverage is a negative externality to the firm’s discretional investment policy for both lowly levered and highly leveraged firms. African firms’ should consider maintaining their low debt levels and rely more on internally generated funds so as not to suppress any available cash flows to interest payments and loan covenants from debt holders. Originality/value The study contributes to the literature on investment and financial leverage by the authors providing evidence from Africa, a developing continent, that has not been explored. It shows how conservative leverage levels of African firms, which have been reported to be rising, are impacting on investments. Pertaining to empirical methodology, the authors employ a dynamic panel data model, the GMM estimation technique, which is robust in controlling endogeneity, and a possible bi-directional causality between leverage and investment which have not been used in literature. The study also enables a comparison of the effect of high leverage and low leverage on firm’s discretional investment.

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