scholarly journals GROWTH AND STRUCTURAL CHANGES IN TRANSITION COUNTRIES: THE CHICKEN OR THE EGG?

2018 ◽  
Vol 19 (3) ◽  
pp. 544-565 ◽  
Author(s):  
Magdalena Olczyk ◽  
Aleksandra Kordalska
Keyword(s):  
Structural Changes ◽  
Value Added ◽  
Transition Countries ◽  
Annual Data ◽  
Causality Analysis ◽  
Granger Causality Analysis ◽  
Panel Granger Causality ◽  
Heterogeneous Processes ◽  
Small Countries ◽  
The Relationship

The objective of this study is to test empirically the relationship between structural changes (changes in gross value added and employment) and economic growth. We used a panel Granger-causality analysis based on annual data for eight transition countries, covering the period 1995–2011. The main finding is that the causality relations analysed are heterogeneous processes and are identified more often when we measure structural changes by value added than by changes in employment. Among the countries analysed, we separate a subgroup of economies with very strong bilateral causality (small countries such as Latvia, Lithuania, and Estonia), a subgroup in which no causal relationships are observed (e.g., Hungary in the case of employment), and a group with a one-directional relationship (e.g., Poland, where GDP changes cause employment changes, but not vice versa). The research results point to the necessity of taking into account different relationships, whether one- or two-directional, between growth and structural changes in government economic policy. The paper presents a verifiable methodology, which was originally used to identify the analysed relationship in transition countries.

The Nexus between Financial Development and Human Development: The Case of Developing Countries

2020 ◽  
Vol 8 (2) ◽  
pp. 68
Author(s):  
Bilgehan Tekin
Keyword(s):  
Developing Countries ◽  
Private Sector ◽  
Human Development ◽  
Financial Development ◽  
Cointegration Analysis ◽  
Annual Data ◽  
Causality Analysis ◽  
Development Index ◽  
Development Levels ◽  
The Relationship

The purpose of this study to examine the relationship between financial development and human development in the health and welfare dimensions of developing countries. This study aims to determine whether the financial developments of the countries have an effect on the basic human development of the individuals and whether human development indicators have an impact on financial development. In this study, the relationship between financial development and human development has been tried to be revealed by using data obtained from developing countries. Financial development levels of the countries were measured with the developed financial development index. The index is calculated by using M3 / GDP, private sector loans / GDP and loans to banks from private sector / GDP ratios. The human development index is calculated by considering various health indicators and GNP per capita. The data includes annual data for the period 1970-2016. Pedroni and Kao cointegration analysis and Dumitrescu & Hurlin panel causality analysis were performed in the study. According to the results of the study, the cointegration relationship was determined between the two variables. There is also a two-way causality between the variables.

scholarly journals Does fiscal consolidation promote economic growth and employment? Evidence from the PIIGGS countries

2018 ◽  
Vol 15 (3) ◽  
pp. 289-312 ◽  
Author(s):  
Philip Arestis ◽  
Ayşe Kaya ◽  
Hüseyin Şen
Keyword(s):  
Economic Growth ◽  
Great Britain ◽  
Granger Causality ◽  
Annual Data ◽  
Causality Analysis ◽  
Fiscal Consolidation ◽  
Individual Country ◽  
Granger Causality Analysis

Using annual data over the period 1980–2014, this paper attempts to provide an answer to the question of whether fiscal consolidation promotes growth and employment in the context of the PIIGGS countries (Portugal, Ireland, Italy, Greece, Great Britain, and Spain) by using the Bootstrap Granger causality analysis proposed by Kónya (2006), which allows testing for causality on each individual country separately, and by accounting for dependence across countries. Our findings indicate that in no country considered does fiscal consolidation promote growth. However, fiscal consolidation negatively affects employment in Portugal and Italy, whereas it positively influences employment in Great Britain. Based on our findings, we may suggest that the effects of fiscal consolidation on employment produce mixed results, varying from country to country.

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