Impact of Employed Labor Force, Investment, and Remittances on Economic Growth in EU Countries

This paper analyzes the evolution and influence of gross domestic product per capita, labor force participation rate, gross fixed capital formation, and personal remittances on economic growth for European Union (EU) countries, using data from the World Bank (1996–2019) and from Eurostat (the first two quarters 2019–2020). The study has three components: statistical analysis, analysis of the evolution for each country and EU, and estimation of the impact on economic growth rate by using a linear multifactorial regression model for 1996–2019, 1996–2008, and 2009–2019. The model was validated by econometric techniques. The long-term causal relationship between exogenous and endogenous variables was validated by the Granger test. The results of the study show a differentiated evolution of the indicators, and that all indicators are severely affected by the 2008 financial crisis and the debut of the COVID-19 crisis in early 2020. The model used shows the significant positive influence of labor and investment, and the minor effect of remittances on economic growth. In the context of the COVID-19 epidemic, the results of the study could be arguments to be considered for the redesign of economic policies at European Union level.

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Growth of oil/gas sectors and non oil/gas trade: The impact on labor-force participation rates in Indonesia

10.31227/osf.io/p9z4k ◽

2018 ◽

Author(s):

Andi Sessu

Keyword(s):

Economic Growth ◽

Labor Force ◽

Labor Force Participation ◽

Oil And Gas ◽

Participation Rate ◽

Labor Force Participation Rate ◽

Coefficient Of Determination ◽

Participation Rates ◽

The Impact ◽

Oil Gas

Export trade balance, oil and non-oil imports, Indonesia is in an active state or economy to prosper, while the results of multiple regression analysis showed that the export of non oil/gas, non oil/gas import, oil and gas imports and economic growth positive effect on the labor force participation rate, which means every increased four variables also increased labor force participation rate, while oil and gas exports have negative effect means that any increased export of oil and gas resulting in a decline in labor force participation rates and significant effect of all the variables of the labor force participation rate in Indonesia. Multiple correlation coefficients obtained r = 0.998 shows the effect of variable export of non oil/gas, non oil/gas import, export of oil and gas, oil and gas imports, economic growth together very strong and the coefficient of determination together the five variables can be R = 0.996 shows the percentage contribution of influence together of 99% means that only 0.01% contribution of other variables influence the level of labor force participation in Indonesia. It can be concluded that the development of oil and gas trade and non-oil and gas in Indonesia still need cooperation between individual communities, private sector, civil society and government in an effort to increase trade in Indonesia, because it is very big influence on the labor force participation rate that could lower the unemployment rate and can automatically reducing poverty, because unemployment and poverty in Indonesia is still high when compared with some other countries in the world

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How does renewable energy consumption affect economic growth? Evidence from the European Union countries

SHS Web of Conferences ◽

10.1051/shsconf/202112909005 ◽

2021 ◽

Vol 129 ◽

pp. 09005

Author(s):

Natalia Davidson ◽

Elizaveta Maksimova ◽

Oleg Mariev

Keyword(s):

Economic Growth ◽

European Union ◽

Renewable Energy ◽

Energy Consumption ◽

Generalized Method Of Moments ◽

Green Energy ◽

The European Union ◽

Renewable Energy Consumption ◽

Eu Countries ◽

The Impact

Research background: Fossil fuels are used at such a high rate that they are currently being depleted. Moreover, they are associated with a greenhouse effect leading to global warming. Meanwhile, green energy is naturally replenished and fosters sustainable development (Nelson and Starcher, 2015). However, the empirical evidence of the impact of green energy on economic growth is controversial (Adewuyi and Awodumi, 2017; Chen et al., 2020; Destek and Aslan, 2017; Zafar et al., 2018). Purpose of the article: This paper analyses the impact of renewable energy consumption on economic growth in the European Union (EU) countries. This is important in line with the goals of EU to shift towards green energy during the coming years (Directive (EU) 2018/2001). Methods: We use data of the World Bank and Our World in Data over 1990 to 2015 for 28 EU countries. We estimate the impact of renewable energy consumption on the countries’ gross domestic product. The control variables are labor force, research and development, and foreign direct investment. We apply the pooled mean group, mean group, the dynamic fixed effect estimators (Pesaran, 1997; Pesaran et al., 1999), and generalized method of moments (Arellano & Bond, 1991). Findings & Value added: Results show that the renewable energy consumption positively affects economic growth of the EU countries. We contribute by shedding light on the possibility to develop renewable energy, while achieving economic growth. The results have important implications for economic policy.

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Implications of higher retirement age for the labor market

Voprosy Ekonomiki ◽

10.32609/0042-8736-2017-3-22-39 ◽

2017 ◽

pp. 22-39 ◽

Cited By ~ 8

Author(s):

M. Ivanova ◽

A. Balaev ◽

E. Gurvich

Keyword(s):

Economic Growth ◽

Labor Market ◽

Labor Supply ◽

Labor Force ◽

Labor Demand ◽

Retirement Age ◽

Demographic Trends ◽

Men And Women ◽

Demographic Projections ◽

The Impact

The paper considers the impact of the increase in retirement age on labor supply and economic growth. Combining own estimates of labor participation and demographic projections by the Rosstat, the authors predict marked fall in the labor force (by 5.6 million persons over 2016-2030). Labor demand is also going down but to a lesser degree. If vigorous measures are not implemented, the labor force shortage will reach 6% of the labor force by the period end, thus restraining economic growth. Even rapid and ambitious increase in the retirement age (by 1 year each year to 65 years for both men and women) can only partially mitigate the adverse consequences of demographic trends.

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

Sustainability ◽

10.3390/su13147961 ◽

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.

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Female Labor Market Participation and Economic Growth: The Case of Pakistan

Journal of Social Science Studies ◽

10.5296/jsss.v4i2.11386 ◽

2017 ◽

Vol 4 (2) ◽

pp. 217 ◽

Cited By ~ 1

Author(s):

Adnan Khaliq ◽

Dilawar Khan ◽

Sultan Akbar ◽

Muhammad Hamayun ◽

Barkat Ullah

Keyword(s):

Economic Growth ◽

Labor Force ◽

Labor Force Participation ◽

Participation Rate ◽

Female Labor Force Participation ◽

Labor Force Participation Rate ◽

Policy Implications ◽

Series Data ◽

Female Labor ◽

Adf Test

Female labor force plays a significant role in the economic development of a country. The core objective of this paper is to examine the nexus between female labor force participation rate and Pakistan’s economic growth using time series data for the period 1990-2014. The data was extracted from World Development Indicators database. Augmented-Dickey Fuller (ADF) test was applied to examine the data for unit root. The results show that both the variables--- female labor force participation rate and economic growth---are stationary at first difference i.e. I(1). The error correction model (ECM) and Johansen co-integration tests were used to examine the co-integration relation between the variables. The econometric results conclude that there is long-run and a U-shaped link between economic growth and women labor force participation rate of Pakistan. The results conclude that lower female labor force participation rate leads to lower economic growth in Pakistan. This paper has important policy implications, suggests that policies intend to remove such barriers could help to enhance the Pakistan’s economic growth.

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Impact of foreign direct investment on economic growth in the world during 1975–2015

Scientific Messenger of LNU of Veterinary Medicine and Biotechnology ◽

10.32718/nvlvet9106 ◽

2018 ◽

Vol 20 (91) ◽

pp. 28-32

Author(s):

B. B. Brychka

Keyword(s):

Economic Growth ◽

Literature Review ◽

Regression Models ◽

Trade Openness ◽

Positive Influence ◽

Linear Regression Models ◽

Average Value ◽

Gdp Growth Rate ◽

The World ◽

The Impact

The study is concentrated on examination the impact of FDI on economic growth in the World during 1975–2015. The study consists of four consecutive parts, including introduction, literature review, model and methodology, data, empirical results and conclusion. Each part of the study is focused on its own goals. According to the results of the literature review, there is positive influence of FDI on economic growth in various countries. Economic growth is one of the most important goals of any country. The country image on the international level is dependent on its economic power. Economic growth provides an opportunity to improve the living standards in the country. Most researchers conclude that there is a positive influence of FDI on the countries’ economic growth. However, the impact of FDI is strong in developing countries. Moreover, this relationship is stronger in countries with higher educational and technological level, trade openness and development of the countries’ stock markets. Economists often build regression models to estimate the relationship between the variables. In order to find the impact of FDI on economic growth, we are going to apply linear regression models. We take two variables as indicators of the countries’ economic growth, including current GDP expressed in U.S dollars, and annual GDP growth rate. Taking into account that the World’s GDP in current U.S dollar is a factor variable with the mentioned resulting variables, the regression equation looks as follows: The R-squared of the built model is 0.99, indicating that roughly 100% of changes in the World’s GDP is caused by the chosen factors. As it is seen from the SAS output, the residuals of dependent variable and factors variables are distributed normally among its average value. Thus, non-normality is not observed in the model. Taking into account the coefficients of the factor variables, the log GDP is most sensitive to the changes in trade as a percent of GDP. The log GDP is not quite sensitive to the changes in FDI, since the coefficient of 0.000128 means that increasing of FDI by one unit increase the logarithmic value of GDP by $ 0.000128.

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Impact of Project and Programme Aid on Economic Growth: A Cross Country Analysis

The Pakistan Development Review ◽

10.30541/v57i2pp.145-174 ◽

2018 ◽

Vol 57 (2) ◽

pp. 145-174

Author(s):

Pervez Zamurrad Janjua ◽

Malik Muhammad ◽

Muhammad Usman

Keyword(s):

Economic Growth ◽

Principal Component ◽

Economic Policies ◽

Method Of Moment ◽

System Equation ◽

Moment Estimation ◽

Country Analysis ◽

Procurement Reform ◽

Cross Country ◽

The Impact

This study examines the impact of foreign aid instruments, namely Project Aid and Programme Aid, on economic growth of 27 aid-receiving countries. The study constructs a system of three equations, i.e. growth, investment and human capital. Using the Generalised Method of Moment estimation technique, the study concludes that while Project Aid has a positive and significant impact on economic growth, Programme Aid has an insignificant impact on economic growth. Additionally, the study finds that economic policies do enhance effectiveness of aid at aggregate level. Therefore, the capacity of aid-recipient countries to effectively use their resources for economic development needs due consideration. Keywords: Project Aid, Programme Aid, Economic Growth, Conditionality, Procurement Reform, System Equation Method, Generalised Method of Moment (GMM), Principal Component Analysis

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Are Business Regulations Improving Economic Growth? Case Study between ASEAN and European Union

Jurnal Pendidikan Ekonomi Dan Bisnis (JPEB) ◽

10.21009/jpeb.009.1.5 ◽

2021 ◽

Vol 9 (1) ◽

pp. 44-53

Author(s):

Karuniana Dianta Arfiando Sebayang ◽

Belinda Febrina

Keyword(s):

Economic Growth ◽

European Union ◽

Gross Domestic Product ◽

Quantitative Research ◽

Domestic Product ◽

The European Union ◽

Doing Business ◽

Ease Of Doing Business ◽

Business Regulations ◽

The Impact

Economic activities require a transparent regulatory and policy environment that is accessible to all levels of society. This study aims to explain the impact of ease of doing business on economic growth in both ASEAN and the European Union since doing business indicators applied globally. Gross Domestic Product is used as a proxy variable for economic growth as Gross Domestic Product is an indicator to measure economic growth. This study uses a descriptive quantitative research model and uses multiple regressions to determine the effect of ease of doing business on economic growth in ASEAN and the European Union by comparing the result of each ASEAN and European Union. In this study it was found that in ASEAN, there are four indicators of doing business have significant impact to economic growth, while in the European Union five indicators have significant impact to economic growth.

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THE CONTRIBUTION OF MIGRATION TO ECONOMIC GROWTH: THE EXAMPLE OF THE CITY OF ZAGREB

EMC Review - Časopis za ekonomiju - APEIRON ◽

10.7251/emc2101201m ◽

2021 ◽

Vol 21 (1) ◽

Author(s):

Vinko Miličević ◽

Danijel Knežević ◽

Zoran Bubaš

Keyword(s):

Economic Growth ◽

European Union ◽

Economic Activity ◽

Economic Benefits ◽

Gdp Per Capita ◽

The European Union ◽

Per Capita ◽

The Republic ◽

The Impact ◽

The City

The problems in this paper belong to the field of migration and economy. The connection between migration and the economy has been proven on a global level, and as far as the Republic of Croatia is concerned, it is especially important to observe it through the City of Zagreb, which is the most important migration and economic center in the Republic of Croatia. Also, the accession of the Republic of Croatia to the European Union emphasized the observation and research of this connection because it created the preconditions for freer movement and employment of the population of the Republic of Croatia and the City of Zagreb within the European Union. The aim of this paper is to determine the contribution of migration to the economic growth of the City of Zagreb. The hypothesis presented in the paper is that there is a significant contribution of migration to the economic growth of the City of Zagreb. The disposition of the paper consists of six parts. The introduction explains the relevance of the topic, states the aim of the paper and hypotheses, explains the empirical part, the contribution of the paper and the disposition. The second part of the paper refers to the theoretical framework of the impact of migration on economic growth. The third part of the paper presents the migration processes of the City of Zagreb in the period from 2011 to 2018. The fourth part deals with economic activity in the City of Zagreb in the period from 2011 to 2017. The observed indicators of economic activity in the City of Zagreb are GDP and GDP per capita, and the graph in this part of the paper shows that GDP and GDP per capita in the observed period are higher at the end of the period than at the beginning. The fifth part of the paper refers to the empirical research of the contribution of migration to the economic growth of the City of Zagreb. The empirical part of the paper is based on correlations and regression analyses. This paper proves the hypothesis because the results indicate a significant impact of the variables of total and external migration on the GDP of the City of Zagreb and GDP per capita of the City of Zagreb. Decision-makers in the City of Zagreb can use the results of the research as a basis for maximizing the economic benefits they can get from migration. The conclusion provides an overview of the aim of the work, the results of the research, the limitations, the implications and the recommendations for future research.

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The impact of health care financing on the economic growth: EU countries analysis

10.21272/hem.2020.2-03 ◽

2020 ◽

Vol 1 (2) ◽

pp. 24-32

Author(s):

Anastasiia Samoilikova ◽

Rosen Kunev

Keyword(s):

Economic Growth ◽

Health Care ◽

Software Package ◽

Positive Impact ◽

Statistical Significance ◽

Health Care Financing ◽

Eu Countries ◽

Per Capita ◽

The Impact ◽

The Eu

This article generalized modern tendencies and actual peculiarities of health care financing. The key aim of the research is to investigate the dynamics of health care financing as a factor of economic growth based on EU countries analysis. Systematization information sources connected with health care financing and its structure indicate that the EU countries analysis of dynamics of health care financing and its impact on economic growth was conducted fragmentary. This issue is still actual both for scholars and policymakers, especially for Ukraine, based on European trends. Investigation in the article is made according to the following stages: 1) introduction and relevance grounding; 2) literary review and identifying the necessity of research in this scientific area; 3) describing methodology, research methods, and current hypothesis; 4) characteristic of research results and confirming the hypothesis of the positive impact of the health care financing on economic growth; 5) making conclusions. Methodological tools of the research methods were structural and comparative analysis, logical generalization, and scientific abstraction. The methods of cross-country statistical and analytical analysis using the Excel 2010 software package for the sample from 14 EU countries for 2009-2018 (limited number of countries and limited data in 2018 relate to the data availability on open website of the EU statistical office) were applied to analyse the structure of health care financing, in particular financing schemes, main providers, and health care functions. The top countries in health care financing were identified. The methods of empirical analysis using the STATA software package for this data sample were used to confirm the hypothesis about the positive impact of the health care financing on economic growth – the GDP per capita. The nature of the analysed indices distribution was estimated based on results of Shapiro-Wilk test. So, Pearson or Spearman correlation coefficient was chosen. The statistical significance and strength of the relationship between the indicators of total expenditure for health care, and in particular government financing and compulsory contributory health care financing, voluntary health care financing, and household out-of-pocket payment for health care and the change of GDP per capita were assessed through a correlation analysis. The time lags of achievement the most statistical significance by this relationship was also identified. The results of the research show that the impact of health care financing on the change of economic growth is very high in 12 from 14 investigated EU countries (with lags of 1–3 years) and high in 2 from 14 countries (with a lag of 1 year). The character of this relationship for the most countries (9 from 14 countries) is direct (positive), and for 5 countries it is inverse (negative). The results of the research will be useful during future fundamental and practical research connected with health care financing and its modelling, for scholars and government officials to reform the health care system and its financial mechanism.

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