Corruption and Tax Burden: What Is the Joint Effect on Total Factor Productivity?

A common conclusion in the literature is that both corruption and taxation hamper economic growth. It is also plausible that both affect total factor productivity, which, by the famous Solow residual, is a vital driver of economic progress. Moreover, corruption and tax burden are supposed to be intertwined. This paper focuses on the supposedly linked effects of corruption and tax burden on total factor productivity. The empirical study uses panel data from 90 countries for the time span of 1996–2014. The results show that both corruption and tax burden deteriorate total factor productivity, but that an increase in tax burden mitigates the negative effect of corruption.

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New Evidence on the Relationship Between Economic Freedom and Growth: A Panel Cointegration Analysis for The Case of OECD

Global Economy Journal ◽

10.1515/1524-5861.1796 ◽

2012 ◽

Vol 12 (3) ◽

pp. 1850263 ◽

Cited By ~ 3

Author(s):

Ekrem Erdem ◽

Can Tansel Tugcu

Keyword(s):

Economic Growth ◽

Panel Data ◽

Total Factor Productivity ◽

Economic Freedom ◽

Global Financial Crisis ◽

Oecd Countries ◽

Cointegration Analysis ◽

Factor Productivity ◽

The Impact ◽

The Relationship

The aim of this paper is to find a new answer to an old question “Is economic freedom good or not for economies?” which was refreshed after the Global Financial Crisis of 2008. For this purpose, the relationship between economic freedom and economic growth, and the relationship between economic freedom and total factor productivity in OECD countries were investigated by using panel data for the period of 1995-2009. Study employed the recently developed cointegration test by Westerlund (2007) and the estimation technique by Bai and Kao (2006) which account for cross-sectional dependence that is an important problem in the panel data studies. Although no significant relationship found between economic freedom and total factor productivity, cointegration analysis revealed that economic freedom matters for economic growth in OECD countries in the long-run, and estimation results showed that direction of the impact is negative.

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The Impact of Total Factor Productivity on Economic Growth for Developed and Emerging Countries: A Second-generation Panel Data Analysis

Margin The Journal of Applied Economic Research ◽

10.1177/0973801017722266 ◽

2017 ◽

Vol 11 (4) ◽

pp. 404-417 ◽

Cited By ~ 1

Author(s):

Ömer Yalçınkaya ◽

İbrahim Hüseyni ◽

Ali Kemal Çelik

Keyword(s):

Economic Growth ◽

Panel Data ◽

Total Factor Productivity ◽

Second Generation ◽

Capital Formation ◽

Emerging Countries ◽

Fixed Capital ◽

Factor Productivity ◽

Fixed Capital Formation ◽

The Impact

This article investigates the determinants of economic growth and also seeks to determine whether or not the impact of total factor productivity (TFP) changes with respect to the level of development for selected countries. In this manner, the present study examines the impact of gross fixed capital formation, employed labour and the TFP of G-7, G-12 and G-20 countries on real GDP per capita using second-generation panel data analyses over the period 1992–2014. The results reveal that TFP has a greater impact on economic growth than fixed capital formation and employed labour for all country groups. Furthermore, the impact of TFP on economic growth was found to be greater for developed countries than for emerging countries. JEL Classification: C21, C22, C23

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The Role of Institutional Quality on Total Factor Productivity

Foreign Direct Investments ◽

10.4018/978-1-7998-2448-0.ch026 ◽

2020 ◽

pp. 605-633

Author(s):

Tarkan Cavusoglu ◽

Debi Konukcu Onal

Keyword(s):

Economic Growth ◽

Panel Data ◽

Middle East ◽

Eastern Europe ◽

Total Factor Productivity ◽

Institutional Quality ◽

Factor Productivity ◽

Institutional Influences ◽

Regional Analyses

Within the settings of the economic growth literature, this study aims at analyzing the determinants of total factor productivity in the Central and Eastern Europe (CEE) and the Middle East and North Africa (MENA) regions, with a special emphasis on institutional quality. Beside descriptive analyses, several fixed-effect panel data regressions are estimated, which enables both cross-country and cross-regional analyses. Estimation results provide strong statistical evidence of institutional influences on total factor productivity in the CEE and MENA economies.

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