scholarly journals THE IMPACT OF EU IMMIGRATION ON ECONOMIC GROWTH THROUGH THE SKILL COMPOSITION CHANNEL

2020 ◽  
Vol 26 (2) ◽  
pp. 479-503
Author(s):  
Andreea Claudia Șerban ◽  
Mirela Ionela Aceleanu ◽  
Andrei Silviu Dospinescu ◽  
Diana-Mihaela Țîrcă ◽  
Isabel Novo-Corti
Keyword(s):  
Economic Growth ◽  
Dynamic Panel ◽  
Endogeneity Bias ◽  
Skill Composition ◽  
Skilled Immigration ◽  
Generalised Method Of Moments ◽  
And Migration ◽  
Effects Of Aging ◽  
Dynamic Panel Models ◽  
The Impact

The paper aims to examine the new trends of immigration and their implications on the economy of the host country, particularly on economic growth and unemployment. As the effects of aging population can be felt in many countries, especially in developed ones, migration will continue to play an increasing role in the economic growth of all countries, either sending or receiving. Given the changes in migration trends and migration policies, the impact of the process should be revised. One of the main characteristics that significantly impacts economic growth is the education and skill level of immigrants. In the light of this fact, the research aims to identify the impact of immigration on growth through the skill composition channel. We analyzed the impact of skilled and unskilled immigration on growth, also including the unemployment rate as a relevant factor for the labour market. We estimated six dynamic panel models using the system of generalised method of moments (GMM) to take into account the risk of an endogeneity bias of the migration variables. The results indicate a positive and significant effect of skilled immigration on the economic growth of the receiving country. The results also point to a 1.3 percent β-convergence rate consistent with the values found in the convergence literature which are around 2 percent.

scholarly journals The Impact of Economic Freedom on Economic Growth? New European Dynamic Panel Evidence

2020 ◽  
Vol 13 (2) ◽  
pp. 26
Author(s):  
Ivana Brkić ◽  
Nikola Gradojević ◽  
Svetlana Ignjatijević
Keyword(s):  
Economic Growth ◽  
Economic Freedom ◽  
Negative Impact ◽  
Developed Countries ◽  
Dynamic Panel ◽  
Heritage Foundation ◽  
Eu Membership ◽  
Time Period ◽  
European Economies ◽  
The Impact

This paper analyzes the impact of economic freedom along with traditional economic factors on economic growth for a panel of European countries. The growth of the gross domestic product was observed over a twenty-year time period on a sample of 43 developing and developed countries. Based on a robust dynamic panel setting, we conclude that increases in economic freedom as expressed by the Index of Economic Freedom/Heritage Foundation (but not its levels) are related to economic growth. The EU membership status either had no effect or it curbed the effect of the economic freedom on growth. We also find that the subprime economic crisis of 2008–2009 exerted a negative impact on the growth of European economies.

The nexus of economic growth, priority sector lending and non-performing assets: case of Indian banking sector

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Dolly Gaur ◽  
Dipti Ranjan Mohapatra
Keyword(s):  
Economic Growth ◽  
Banking Sector ◽  
Dynamic Panel ◽  
Content Type ◽  
Generalized Methods Of Moments ◽  
Major Increase ◽  
Dynamic Panel Regression ◽  
Methods Of Moments ◽  
The Impact

PurposeIn recent years, the Indian banking sector is facing a major cause of concern in the form of Nonperforming Assets (NPA), and the priority sector lending (PSL) is generally recognized as the major factor contributing to it. Thus, the present study has been carried out with the objective of examining the relationship between priority sector lending and GDP growth. Thereafter, the role of PSL and certain other bank-specific, industry-specific and macroeconomic variables in determining NPA has been studied.Design/methodology/approachTaking a sample of 45 scheduled commercial banks, the study has been carried out for 14 years (2004–2018). Granger causality between PSL and GDP has been examined by applying the Dumitrescu-Hurlin test. For the purpose of investigating the impact of PSL and other determinants on NPA, both static and dynamic panel regression have been performed. Under the dynamic panel, system generalized methods of moments (S-GMM) approach has been followed.FindingsThe findings show that there exists a positive correlation and bidirectional causal relationship between PSL and GDP, which implies that PSL brings additional growth for the whole economy. In addition to it, PSL is found to be insignificant for the NPA ratio, and thus, it can be inferred that credit extended to government-specified sectors does not bring any major increase in the bad loan portfolio of banks.Practical implicationsThe policymakers and bank management can take a cue from the findings of this study to decrease the exposure to loan nonrepayment issue. The priority sectors are in need of formal credit for their growth, and since the rising population of the country can find employment in these sectors, banks should meet their credit needs while securing their position with regard to the NPA problem.Originality/valueThe issue of NPA determinants, and in particular, the contribution of priority sector lending in it has not been much explored for Indian banking sector. Also, the present study adds to the literature by using the causality approach for examining the importance of directed credit schemes for economic growth.

scholarly journals Financial Inclusion and Demand for Money: a Dynamic Panel Data Approach

2018 ◽  
Vol 7 (2) ◽  
pp. 137-148
Author(s):  
Zelin Nurfadia Sidik ◽  
Noer Azam Achsani ◽  
Syamsul Hidayat Pasaribu
Keyword(s):  
Economic Growth ◽  
Financial Institution ◽  
Developed Countries ◽  
Dynamic Panel Data ◽  
Financial Inclusion ◽  
The Other ◽  
Demand For Money ◽  
Dynamic Panel ◽  
On Demand ◽  
The Impact

Financial inclusion is designed to increase the opportunities and society participation in the formal financial institution, especially for unbanked people. Moreover, financial inclusion is one of strategy inclusive economic growth. However, financial inclusion may lead an ineffectiveness of monetary policy. It is because financial inclusion can affect the sensitivity of interest rate, and it could cause instability demand for money. Therefore, the research aims to analyze the impact of financial inclusion on demand for money, reserve money (M0), in 36 countries for the period 2004 to 2014. The method that used is Dynamic Panel Approach. The result shows that financial inclusion stimulates the increase of demand for reserve money (M0) in developed countries. In the other hand, the increasing of financial inclusion could decrease the demand for reserve money (M0) in developing countries.DOI: 10.15408/sjie.v7i2.6838

scholarly journals The Impact of Migrant Remittances on Economic Growth in Arab Countries

2019 ◽  
Vol 5 (2) ◽  
pp. 188
Author(s):  
Habib Ouni ◽  
Hela Miniaoui
Keyword(s):  
Economic Growth ◽  
Potential Role ◽  
Dynamic Panel Data ◽  
Arab Countries ◽  
Consumption Expenditure ◽  
Gulf Region ◽  
Dynamic Panel ◽  
Migrant Remittances ◽  
Using Data ◽  
The Impact

<p><em>The potential role that workers’ remittances are likely to play in promoting economic growth, especially in Arab countries, is currently attracting considerable attention. </em><em>These remittances have an impact on the remitting economies as well. </em><em>The Gulf region is considered one of the top sending countries of migrant remittances. In this study, empirical analysis is carried out with panel techniques using data over the last three decades for six Arab countries. Our results show that migrant remittances have a positive and significant impact on economic growth. This relationship is also significant when we use dynamic panel data. An indirect effect of remittances on economic growth is pointed out especially via the investment and the household final consumption expenditure channels. </em></p><p><em>Policymakers in Arab countries should take appropriate policy actions to increase the outflow of workers. Developed capital markets, as well as a sound macroeconomic policy environment, would provide incentives for sustainable remittances transfers.</em></p>

scholarly journals Skilled and controlled immigration – a solution to keep sustainable economic growth in Europe?

2011 ◽  
Vol 59 (2) ◽  
pp. 69-74 ◽  
Author(s):  
Daniela Dvořáková
Keyword(s):  
Economic Growth ◽  
Immigration Policy ◽  
Population Decline ◽  
Potential Threat ◽  
Global Competitiveness ◽  
Skilled Immigration ◽  
Western Values ◽  
European Immigration ◽  
And Migration ◽  
Sustainable Economic Growth

Europe’s population decline compared with the demographic explosion in Africa and Asia is a potential threat to sustainable economic growth and global competitiveness in Europe. Europe is currently facing two major problems-lack of population growth and migration pressures. The solution could provide a targeted management of migrations flows. Prerequisite for sustainability of the system is not only a skilled migration, but some form of integration and acceptance of Western values as well. In connection with the deepening of integration of the common EU immigration policy, Czech immigration strategies have to be complementary with the EU strategies. Czech Republic had to already undertaken many reforms of Aliens Act and also tries to launch its own strategies favourising the skilled immigration, to reinforce the main trends in the European immigration policy.

High-Skilled Immigration and Innovation

2018 ◽  
Author(s):  
Alessandra Venturini ◽  
Sona Kalantaryan ◽  
Claudio Fassio
Keyword(s):  
Ethnic Diversity ◽  
Labour Force ◽  
Policy Implications ◽  
Empirical Literature ◽  
Specific Level ◽  
Country Level ◽  
Skilled Immigration ◽  
And Migration ◽  
Definition Of ◽  
The Impact

This chapter provides an extensive review of the existing empirical literature that analyses the impact of (mostly high-skilled) migration on the innovative performances of firms, regions, and countries. The authors discuss the different features of the immigrant labour force, such as education, occupation, age, and internal ethnic diversity, that play a role in the contribution of immigrants to innovation. By categorizing the existing studies on the basis of the definition of innovation and migration that they adopt, as well as on the specific level of analysis chosen (at the firm, regional, or country level), the chapter also engages in an in-depth discussion about the policy implications that can be drawn from the existing evidence. Finally, the chapter outlines some suggestions about the implementation of appropriate immigration policies, able to truly foster innovation in European countries.

scholarly journals Population Ageing, Financial Deepening and Economic Growth: Evidence from China

2018 ◽  
Vol 10 (12) ◽  
pp. 4627 ◽  
Author(s):  
Shangmei Zhao ◽  
Jiang He ◽  
Haijun Yang
Keyword(s):  
Economic Growth ◽  
Positive Impact ◽  
Threshold Level ◽  
Inhibitory Effect ◽  
Population Ageing ◽  
Marginal Effect ◽  
Financial Deepening ◽  
Dynamic Panel ◽  
Negative Effect ◽  
The Impact

Using a panel of 31 Chinese provinces from 2000 to 2016, we investigated the impact of population ageing and financial deepening on economic growth. Based on the dynamic panel system GMM estimators, the empirical results address that both population ageing and financial deepening have a significantly positive impact on economic growth, while the interactions between them have a significantly negative effect on economic growth. From the perspective of total marginal effect, we also find that population ageing does contribute to economic growth but only when financial deepening is less than a threshold level; however, on the whole, financial deepening has an inhibitory effect on economic growth which increases with population ageing.

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