scholarly journals Transmission Channels between Financial Deepening and Economic Growth: Econometric Analysis Comprising Monetary Factors

Mathematics ◽  
2022 ◽  
Vol 10 (2) ◽  
pp. 242
Author(s):  
Marina Abramova ◽  
Dmitri Artemenko ◽  
Konstantin Krinichansky
Keyword(s):  
Economic Growth ◽  
Panel Data ◽  
Capital Accumulation ◽  
Panel Data Analysis ◽  
Dynamic Panel Data ◽  
Modern Theory ◽  
Transmission Channel ◽  
Financial Deepening ◽  
Transmission Channels ◽  
The Impact

Contemporary literature continues to foster discussion whether financial development is important for economic growth. In the clash of theoretical arguments, the prevailing idea is that finance exerts a direct positive influence on GDP growth. However, the presence of theoretical counterarguments and contradictory results of empirical studies suggest that scientists, in search of an answer about the direction and power of the net effect, should develop methods of empirical analysis, and the very mystery of the relationship between finance and growth will finally be solved exclusively empirically. In this paper, the authors contribute to the development of the ‘finance-growth’ literature by answering some existing questions concerning the transmission channels from finance to growth, relying on more recent data compared to already conducted studies. We use panel data covering the period 1995 to 2019 for 168 countries. In addition, the paper touches on the problem of studying the exogenous conditions of such channels, considering the assumption that among these conditions there may be those that hinder the impact of financial deepening on economic growth. Our focus is on monetary conditions, and in the empirical part of the study, we touch upon the problem of the influence of price stability on the operation of these transmission channels. The methods of the conducted study are based on the dynamic panel data analysis techniques (System GMM). The novelty of this paper lies in the development of the modern theory of the financial sector transmission mechanism in the economic growth context. The main result of the study is that productivity channel is the most reliable transmission channel of financial deepening to economic growth. Furthermore, the effectiveness of this channel remains virtually unaffected by inflation. The channel of capital accumulation should be considered less reliable (in terms of statistical reliability of estimates obtained), but it has turned out to be a more economically significant transmission channel. This channel is sensitive to the inflation factor in certain categories of countries. Finally, as follows from the estimates gained, the non-linearity of the “finance-growth” relationship can be explained by the non-linearity of the variable responsible for the capital accumulation channel.

scholarly journals Circular Economy Innovation and Environmental Sustainability Impact on Economic Growth: An Integrated Model for Sustainable Development

2020 ◽  
Vol 12 (12) ◽  
pp. 4831 ◽  
Author(s):  
Eglantina Hysa ◽  
Alba Kruja ◽  
Naqeeb Ur Rehman ◽  
Rafael Laurenti
Keyword(s):  
Economic Growth ◽  
Sustainable Development ◽  
Panel Data ◽  
Circular Economy ◽  
Panel Data Analysis ◽  
Estimation Method ◽  
Private Investment ◽  
Dynamic Panel Data ◽  
Essential Components ◽  
The Impact

This study examines the link between selected indicators of a circular economy, including essential components of environmental and economic growth. Developed economies are continuously innovating to promote growth and giving governmental support to the producers to move from linear economies to circular ones. Hence, waste materials in industrial systems are recycled or re-used, improving the efficiency of using finite resources with the no-waste approach. The aim of this paper is the following: (1) to identify the main components of a circular economy, which are also supportive of sustainability and development; (2) to check the impact of these variables in the economic growth of European Union countries; (3) to find out if the three components of sustainable development adopted to circular economy (CE) indicators (environmental–social–economic) are significant to economic growth. We used a fixed effect panel data analysis to identify the circular economy’s impact on the economic growth of European countries. Additionally, to support the results of the regression analysis, we employed a second method—generalized methods of moments—computing the Arellano–Bond dynamic panel data estimation method. The model included five independent variables, such as environmental tax rate, a recycling rate of waste, private investment and jobs in a circular economy, patents related to recycling, and trade of recyclable raw materials. The identification of each variable was made based on a deep search through literature. The results of both econometric models showed a strong and positive correlation between a circular economy to economic growth, highlighting the crucial role of sustainability, innovation, and investment in no-waste initiatives to promote wealth.

scholarly journals The Importance of Maritime Transport for Economic Growth in the European Union: A Panel Data Analysis

2021 ◽  
Vol 13 (14) ◽  
pp. 7961
Author(s):  
Alexandra Fratila (Adam) ◽  
Ioana Andrada Gavril (Moldovan) ◽  
Sorin Cristian Nita ◽  
Andrei Hrebenciuc
Keyword(s):  
Economic Growth ◽  
European Union ◽  
Panel Data ◽  
Panel Data Analysis ◽  
Maritime Transport ◽  
The European Union ◽  
Panel Data Regression ◽  
Green Investment ◽  
Port Infrastructure ◽  
The Impact

Maritime transport is one of the main activities of the blue economy, which plays an important role in the EU. In this paper, we aim to assess the impact of maritime transport, related investment, and air pollution on economic growth within 20 countries of the European Union, using eight panel data regression models from 2007 to 2018. Our results confirm that maritime transport, air pollutants (NOx and SO2) from maritime transport, and investment in maritime port infrastructure are indeed positively correlated with economic growth. In other words, an increase of 10% in these factors has generated an associated increase in economic growth rate of around 1.6%, 0.4%, 0.8%, and 0.7% respectively. Alongside the intensity of economic maritime activities, pollution is positively correlated with economic growth, and thus it is recommended that policymakers and other involved stakeholders act to diminish environmental impacts in this sector using green investment in port infrastructure and ecological ships, in accordance with the current European trends and concerns.

scholarly journals Tolerance, Cultural Diversity and Economic Growth: Evidence from Dynamic Panel Data Analysis

Economies ◽  
2021 ◽  
Vol 9 (1) ◽  
pp. 20
Author(s):  
Osama Alhendi ◽  
József Tóth ◽  
Péter Lengyel ◽  
Péter Balogh
Keyword(s):  
Panel Data ◽  
Cultural Diversity ◽  
English Language ◽  
Panel Data Analysis ◽  
Dynamic Panel Data ◽  
Policy Implications ◽  
Social Tolerance ◽  
Solow Model ◽  
Related Equation ◽  
The Impact

This study aims to examine the impact of social tolerance of cultural diversity, and the ability to speak widely spoken languages, on economic performance. Based on the literature, the evidence is still controversial and unclear. Therefore, the study used panel data relating to (99) non-English speaking economies during the time period between 2009 and 2017. Following the augmented Solow model approach, the related equation was expanded, in this study, to include (besides human capital) social tolerance, the English language (as a lingua franca) and the level of openness. The model was estimated using the two-step system GMM approach. The results show that social tolerance of diversity and English language competence have a positive, but insignificant impact on the economy. Regarding policy implications, government and decision-makers can avoid the costs deriving from cultural diversity by adopting democratic and effective institutions that aim to achieve cultural justice and recognition, which, in turn, enhance the level of tolerance, innovation and productivity in the economy. Moreover, to ease intercultural communication within heterogeneous communities, it is necessary to invest in enhancing the quality of second language education which is necessary to make society more tolerant and the country more open to the global economy.

scholarly journals Service Export Sensitivity to Internet Adoption: Evidence From Dynamic Panel Data Analysis

2020 ◽  
Vol 11 (6) ◽  
pp. 259
Author(s):  
Walid Chatti ◽  
Haitham Khoj
Keyword(s):  
Developing Countries ◽  
Panel Data ◽  
Panel Data Analysis ◽  
Developed Countries ◽  
Dynamic Panel Data ◽  
Dynamic Panel ◽  
Internet Adoption ◽  
The Impact ◽  
Dynamic Panel Data Analysis ◽  
Service Export

This study aims to examine the causal linkages relating service exports to internet penetration for 116 countries over the period 2000-2017. Taking into account a wide panel of countries, we apply 2-Step GMM methodology for dynamic panel data models. The results show a bi-directional causality relating service exports to internet adoption for developed countries. For the global panel and developing countries, we find those same results attest a positive relationship between the internet adoption and service exports, but in the opposite way; the impact is very low and not significant. Regarding developing countries, despite the fact that internet positively affects service exports, it is considered less efficient than in developed countries.

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