scholarly journals Economic and Non-Economic Variables Affecting Fraud in European Countries

Risks ◽  
2021 ◽  
Vol 9 (6) ◽  
pp. 119
Author(s):  
Bashir Ahmad ◽  
Maria Ciupac-Ulici ◽  
Daniela-Georgeta Beju
Keyword(s):  
Panel Data ◽  
Generalized Method Of Moments ◽  
Political Stability ◽  
Fixed Effect Model ◽  
Dynamic Panel Data ◽  
European Countries ◽  
Economic Variables ◽  
Cross Sectional ◽  
Panel Effects ◽  
The Impact

Fraud is one of the most harmful phenomena, because it leads to collapse of organizations, causes economic downfall of countries, and destroys faith in a country’s capital markets. The impact of fraud is complex and has varying degrees depending on political and financial institutional structures of a country. In this paper, we investigate the combined effect of economic and non-economic variables on fraud using a sample of 41 developed, in transition, and developing European countries. The data cover the period July 2014–December 2020. Panel data techniques of pooled estimation and the dynamic panel data/generalized method of moments (DPD/GMM) is used, keeping in view the endogeneity perspective. Nevertheless, two-way impacts of fixed effect model estimation—cross-sectional and time-based (panel) effects (alternatively)—are used for analyzing the relationship among the given variables, based on Hausman specification test results. Empirical results of panel data extended REM and FEM approaches with country-specific cross-sectional effects showing that political stability, economic freedom, poverty, and GDP significantly affect fraud proliferation. Political stability is appraised to be the most scoring determinant of fraud incidence in a country.

scholarly journals Bias correction methods for dynamic panel data models with fixed effects

2017 ◽  
Vol 6 (2) ◽  
pp. 58
Author(s):  
Mohamed Abonazel
Keyword(s):  
Panel Data ◽  
Fixed Effects ◽  
Generalized Method Of Moments ◽  
Dynamic Panel Data ◽  
Estimation Methods ◽  
Time Dimension ◽  
Dynamic Panel ◽  
Cross Sectional ◽  
Cross Sectional Dimension ◽  
Ls Estimator

This paper considers the estimation methods for dynamic panel data (DPD) models with fixed effects, which suggested in econometric literature, such as least squares (LS) and generalized method of moments (GMM). These methods obtain biased estimators for DPD models. The LS estimator is inconsistent when the time dimension (T) is short regardless of the cross-sectional dimension (N). Although consistent estimates can be obtained by GMM procedures, the inconsistent LS estimator has a relatively low variance and hence can lead to an estimator with lower root mean square error after the bias is removed. Therefore, we discuss in this paper the different methods to correct the bias of LS and GMM estimations. The analytical expressions for the asymptotic biases of the LS and GMM estimators have been presented for large N and finite T. Finally; we display new estimators that presented by Youssef and Abonazel [40] as more efficient estimators than the conventional estimators.

Estimating Dynamic Panel Data Models in Political Science

2002 ◽  
Vol 10 (1) ◽  
pp. 25-48 ◽  
Author(s):  
Gregory Wawro
Keyword(s):  
Panel Data ◽  
Political Science ◽  
Dynamic Models ◽  
Party Identification ◽  
Generalized Method Of Moments ◽  
Dynamic Panel Data ◽  
Panel Data Models ◽  
Dynamic Panel ◽  
Cross Sectional ◽  
Moments Estimators

Panel data are a very valuable resource for finding empirical solutions to political science puzzles. Yet numerous published studies in political science that use panel data to estimate models with dynamics have failed to take into account important estimation issues, which calls into question the inferences we can make from these analyses. The failure to account explicitly for unobserved individual effects in dynamic panel data induces bias and inconsistency in cross-sectional estimators. The purpose of this paper is to review dynamic panel data estimators that eliminate these problems. I first show how the problems with cross-sectional estimators arise in dynamic models for panel data. I then show how to correct for these problems using generalized method of moments estimators. Finally, I demonstrate the usefulness of these methods with replications of analyses in the debate over the dynamics of party identification.

scholarly journals Impact of Trade Openness on Food Security: Evidence from Panel Data for Central Asian Countries

Foods ◽  
2021 ◽  
Vol 10 (12) ◽  
pp. 3012
Author(s):  
Zhilu Sun ◽  
Defeng Zhang
Keyword(s):  
Food Security ◽  
Panel Data ◽  
Trade Openness ◽  
Generalized Method Of Moments ◽  
Dynamic Panel Data ◽  
Asian Countries ◽  
Central Asian ◽  
The World ◽  
Central Asian Countries ◽  
The Impact

The problem of food insecurity has become increasingly critical across the world since 2015, which threatens the lives and livelihoods of people around the world and has historically been a challenge confined primarily to developing countries, to which the countries of Central Asia, as typical transition countries, cannot be immune either. Under this context, many countries including Central Asian countries have recognized the importance of trade openness to ensure adequate levels of food security and are increasingly reliant on international trade for food security. Using the 2001–2018 panel data of Central Asian countries, based on food security’s four pillars (including availability, access, stability, and utilization), this study empirically estimates the impact of trade openness and other factors on food security and traces a U-shaped (or inverted U-shaped) relationship between trade openness and food security by adopting a panel data fixed effect model as the baseline model, and then conducts the robustness test by using the least-squares (LS) procedure for the pooled data and a dynamic panel data (DPD) analysis with the generalized method of moments (GMM) approach, simultaneously. The results show that: (1) a U-shaped relationship between trade openness and the four pillars of food security was found, which means that beyond a certain threshold of trade openness, food security status tends to improve in Central Asian countries; (2) gross domestic product (GDP) per capita, GDP growth, and agricultural productivity have contributed to the improvement of food security. Employment in agriculture, arable land, freshwater withdrawals in agriculture, population growth, natural disasters, and inflation rate have negative impacts on food security; and (3) this study confirms that trade policy reforms can finally be conducive to improving food security in Central Asian countries. However, considering the effects of other factors, potential negative effects of trade openness, and vulnerability of global food trade network, ensuring reasonable levels of food self-sufficiency is still very important for Central Asian countries to achieve food security. Our research findings can provide scientific support for sustainable food system strategies in Central Asian countries.

INTANGIBLE DETERMINANTS OF MARKET VALUE IN THE NEW ECONOMY: A DYNAMIC PANEL DATA ANALYSIS OF THE INDIAN SOFTWARE INDUSTRY

2009 ◽  
Vol 54 (03) ◽  
pp. 379-398 ◽  
Author(s):  
SUPRIYO DE
Keyword(s):  
Panel Data ◽  
Intangible Assets ◽  
Software Industry ◽  
Generalized Method Of Moments ◽  
Market Value ◽  
Dynamic Panel Data ◽  
Dynamic Panel ◽  
Market Values ◽  
Software Firms ◽  
The Impact

Intangible assets like human capital and organization capital have driven the success of India's software industry. This article analyzes the impact of intangible assets on the market value of Indian software firms using a dynamic panel data model. Measures of tangible and intangible assets are constructed using firm-level panel data. The estimation technique uses system generalized method of moments (GMM) and minimum distance estimation (MDE). This methodology accounts for unobserved firm heterogeneity, endogenous explanatory variables and persistent variables. The results conclusively show that intangible assets have a significant impact on market values of Indian software firms.

Oil exports and non-oil exports

2017 ◽  
Vol 44 (4) ◽  
pp. 540-551 ◽  
Author(s):  
Huseyin Karamelikli ◽  
Guray Akalin ◽  
Unal Arslan
Keyword(s):  
Economic Growth ◽  
Panel Data ◽  
Dynamic Panel Data ◽  
Cross Sectional ◽  
Content Type ◽  
Oil Exports ◽  
Cross Sectional Dependence ◽  
The Cross ◽  
Opec Member ◽  
The Impact

Purpose The purpose of this paper is to examine the dynamic relationship between oil exports, non-oil exports, imports and economic growth in the Organization of Petroleum Exporting Countries (OPEC), covering the period 1972-2013 by using panel data analysis. Design/methodology/approach The results from the dynamic panel data methods are as follows: there exists the cross-sectional dependence on each variable. According to the cross-sectionally augmented panel unit root tests, all variables are stationary at the first difference. Westerlund and Edgerton (2007) LM Bootstrap cointegration test shows that there is a long-term relationship between variables. Findings The results obtained by the Common Correlated Effects (CCE) estimator indicate that the increase in oil exports has a positive impact on the GDP of all countries, while the increase in oil exports has a negative impact on the non-oil exports of some countries. Originality/value In this study, the relationship between oil exports, economic growth, imports and non-oil exports of the 12 OPEC member countries is tested by considering the cross-sectional dependence between 1972 and 2013. In the study, the authors found a positive relationship as a result of researching the impact of oil exports on economic growth in the frame of CCE panel estimations results.

scholarly journals The Impact of Economic Freedom on Creating Happiness and Inequality: International Evidences

2020 ◽  
pp. 35-50
Author(s):  
Debraj Roka
Keyword(s):  
Panel Data ◽  
Economic Freedom ◽  
Random Effect ◽  
Generalized Method Of Moments ◽  
Estimation Method ◽  
Generalized Least Squares ◽  
Dynamic Panel Data ◽  
Human Beings ◽  
The Common ◽  
The Impact

It is remaining a big question in happiness economics, what is the common motto of human beings? What human beings want to achieve? Are these, money, good job, position, power, peace, good living condition, good health, good family, good environment and what others? All researchers from different disciplines are investigating to solve this economic problem and Most of the researchers agreed that happiness is the common aim of everyone in the world. The paper entitled “Does Economic Freedom Create Happiness or Inequality?” is estimated the effect of economic freedom on happiness by using other control variables like Gross Domestic Product growth, per capita and inequality. The paper analyzed the panel data covering 120 countries from 2008 to 2016. The fixed and random effect, the Generalized Least Squares, First in Difference and Linear Dynamic Panel Data/generalized method of moments estimation method are applied as the econometric strategies in this paper. The results found that the statistically significant and strong linear positive association between economic freedom and happiness in overall sampled countries and also found the positive linear association between income with happiness and a negative association between economic freedom and inequality and inequality and happiness.

scholarly journals Exploring the Nexus Between Culture, Values, Institutions, Happiness and Philanthropy: A Global Evidence

2020 ◽  
Vol 7 (1) ◽  
pp. 16
Author(s):  
Maham Mushtaq ◽  
Danish Ahmed Siddiqui
Keyword(s):  
Social Support ◽  
Panel Data ◽  
Political Stability ◽  
Charitable Organizations ◽  
World Value Survey ◽  
Cross Sectional ◽  
Short Run ◽  
Humanitarian Organization ◽  
World Governance Indicators ◽  
The Impact

The main aim of this study was to investigate the impact of culture, values, institutions, and happiness on the world’s philanthropy. Culture is measured by Hofstede index (i.e. individualism-collectivism, masculinity-femininity, long and short-run orientation, uncertainty avoidance, power distance, and indulgence-restraint). The measurement of value is WVS (World Value Survey) and it consists of the emotion of happiness, active/ inactive membership of a church or religious organization, important in life; religion, confidence on charitable/ humanitarian organization and active/ inactive membership of charitable/ humanitarian organization. Institutions are measured by WGI (World Governance Indicators) and it consists of corruption, regulatory quality, accountability and voice, rule of law, political stability and government effectiveness, the sub-variables of happiness (index) are social support, freedom to take decisions and generosity and world’s philanthropy is measured by CAF (Charitable Aid Foundation) world giving index. We have gathered panel data (from the period 2010 to 2014) of CAF index, happiness index and WGI of 62 countries and cross-sectional data of CAF index, Hofstede index, WGI, happiness index and WVS of 24 countries. The result (of panel data) shows that there is a significant relation of WGI, social support and freedom of choice with CAF index whereas there is an insignificant connection between generosity and CAF index. The findings (of cross-sectional data of all factors combined) shows that there is a relation of the Hofstede index and happiness index with the CAF index while there is no linkage of WGI and WVS with the CAF index. The study suggests that charitable organizations should personify their value in order to build trust among the public. Countries should improve their governance because this will lead to equality and by doing this countries will also manage their resources efficiently and effectively.

Just Like Leaves in the Wind? Exploring the Effect of the Interplay of Media Coverage and Personal Characteristics on Issue Salience

2017 ◽  
Author(s):  
Agatha Kratz ◽  
Harald Schoen
Keyword(s):  
Individual Differences ◽  
Panel Data ◽  
Financial Crisis ◽  
Media Coverage ◽  
News Coverage ◽  
Personal Characteristics ◽  
Election Campaign ◽  
Issue Salience ◽  
Cross Sectional ◽  
The Impact

This chapter explores the effect of the interplay of personal characteristics and news coverage on issue salience during the 2009 to 2015 period and during the election campaign in 2013. We selected four topics that played a considerable role during this period: the labor market, pensions and healthcare, immigration, and the financial crisis. The evidence from pooled cross-sectional data and panel data supports the notion that news coverage affects citizens’ issue salience. For obtrusive issues, news coverage does not play as large a role as for rather remote topics like the financial crisis and immigration. The results also lend credence to the idea that political predilections and other individual differences are related to issue salience and constrain the impact of news coverage on voters’ issue salience. However, the evidence for the interplay of individual differences and media coverage proved mild at best.

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