scholarly journals The Impact of GDP on Cross-Country Efficiency in Wealth Maximization: a Joint Analysis Through the Stochastic Frontier and Generalized Method of Moments

2021 ◽  
pp. 101-127
Author(s):  
Harun Or Rosid ◽  
Zhao Xuefeng ◽  
Sk Alamgir Hossain ◽  
Mohammad Raihanul Hasan ◽  
Reza Sultanuzzaman
Keyword(s):  
Regression Models ◽  
Robust Regression ◽  
Negative Impact ◽  
Generalized Method Of Moments ◽  
Stochastic Frontier ◽  
Joint Analysis ◽  
Frontier Analysis ◽  
Wealth Maximization ◽  
Cross Country ◽  
The Impact

Wealth maximization is still the principal objective of a corporation and income plays a pivotal role in this regard. Taking this to the country context, wealth maximization can be a more refined objective alongside GDP growth. Considering GDP as the key wealth maximizer for a nation, the present work was undertaken to determine cross-country wealth efficiency and its determinants based on GDP covariates. The relationship between aggregate net wealth and GDP of 106 different countries for a period of 2009 to 2018 were analyzed to estimate annual incremental wealth efficiency based on their GDP covariates using input-output stochastic frontier analysis (SFA). Further, the determinants of incremental wealth efficiency were identified using multiple regression models. The SFA analysis shows significant negative impact of GDP on wealth maximization efficiency, like the law of diminishing marginal return to scales advocates. With the increase of GDP of a country, its marginal efficiency in wealth maximization decreases though aggregate wealth increases. The robust regression models show that imports, broad money and exchange rate undermine the wealth efficiency of a country and country’s past efficiency positively influences the subsequent year’s efficiency. These findings are expected to open new horizons for policymakers in policy analyses. JEL classification numbers: E1, E2, F4 Keywords: Wealth Maximization, GDP, SFA, Technical Efficiency, GMM, Driscoll Kraay.

scholarly journals Competition and Profitability of Banks: Empirical evidence from the Middle East & North African (MENA) Countries

2020 ◽  
Vol 3 (2) ◽  
Author(s):  
Syed Moudud-Ul-Huq ◽  
Md. Abdul Halim ◽  
Tanmay Biswas
Keyword(s):  
Banking Sector ◽  
Negative Impact ◽  
Generalized Method Of Moments ◽  
Stochastic Frontier ◽  
Government Support ◽  
Policy Implications ◽  
Mena Countries ◽  
Banking Sector Development ◽  
Wide Range ◽  
The Impact

This paper uses generalized method of moments (GMM), Least Squares (LS) and Generalized Linear Model (GLM) to examine the impact of competition on profitability of banks and Stochastic Frontier approach (SFA) is used to estimate of cost efficiency. We have used an unbalanced panel dataset from a sample of emerging economic MENA countries over the period between 2011 and 2017. We find out that have a significant and negative impact of competition on profitability of banks. The empirical findings of this study suggest that MENA banks should more improve the process of managing and monitoring the loan segment business ; the result which reducing in the level of credit risk which leads to higher profitability  ii) MENA banks should shrink higher level of banking sector development. iii) MENA banks should make full conduct of available funds to engage in various natures of businesses; if there is an issue of insolvency, robust government support would give protection to MENA banks. Finally, it also provides some compulsory policy implications which will be very beneficial for a wide range of stakeholders.

scholarly journals Spatial Dependence Evaluation of Agricultural Technical Efficiency—Based on the Stochastic Frontier and Spatial Econometric Model

2021 ◽  
Vol 13 (5) ◽  
pp. 2708
Author(s):  
Ziqi Yin ◽  
Jianzhai Wu
Keyword(s):  
Spatial Distribution ◽  
Technical Efficiency ◽  
Spatial Dependence ◽  
Stochastic Frontier ◽  
Hebei Province ◽  
Agricultural Technology ◽  
Agricultural Product ◽  
Spatial Econometric ◽  
Frontier Analysis ◽  
The Impact

In recent years, through the implementation of a series of policies, such as the delimitation of major grain producing areas and the construction of advantageous and characteristic agricultural product areas, the spatial distribution of agriculture in China has changed significantly; however, research on the impact of such changes on the efficiency of agricultural technology is still lacking. Taking 11 cities in Hebei Province as the research object, this study examines the spatial dependence of regional agricultural technical efficiency using the stochastic frontier analysis and spatial econometric analysis. The results show that the improvement in agricultural technical efficiency is evident in all cities in Hebei Province from 2008 to 2017, but there is scope for further improvement. Industrial agglomeration has statistical significance in improving the efficiency of agricultural technology. Further, there is an obvious spatial correlation and difference in agricultural technical efficiency. Optimizing the spatial distribution of agricultural production, promoting the innovation, development, and application of agricultural technology, and promoting the expansion of regional elements can contribute to improving agricultural technical efficiency.

Banking market structure and efficiency: an assessment of the USA and Canada

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Salah U-Din ◽  
David Tripe
Keyword(s):  
Market Structure ◽  
Market Power ◽  
Negative Impact ◽  
Positive Impact ◽  
Bank Efficiency ◽  
Content Type ◽  
Frontier Analysis ◽  
Banking Market ◽  
Cost Efficient ◽  
The Impact

PurposeThe study aims to analyze the changes in banking market structure and their impact on the bank efficiency.Design/methodology/approachThis study uses a one-stage stochastic frontier analysis (SFA) to compare the impact of the market structure and the GFC on the economic efficiency of the major banks in both countries.FindingsA significant negative impact of the GFC is observed on bank efficiency. Overall, Canadian banks posted better efficiency scores than their American counterparts. Additionally, cost-efficient banks are found to be more resilient to crises and more profit-efficient in the post-GFC period. The authors found that market power had a positive impact on the cost and profit efficiency of banks. Higher levels of equity, market power and concentration helped banks be more cost-efficient.Research limitations/implicationsOnly large banks are selected for study although it represents the majority stake of both banking sectors.Practical implicationsBanking regulators should include more measures to assess the banking market structure and performance.Originality/valueAs per the best knowledge of the authors, it is the first study to assess the change in banking market structure and efficiency of the US and Canadian banking sectors in the post-GFC period.

scholarly journals International R&D Spillovers and Innovation Efficiency

2018 ◽  
Vol 10 (11) ◽  
pp. 3974 ◽  
Author(s):  
Jianping Liu ◽  
Kai Lu ◽  
Shixiong Cheng
Keyword(s):  
Capital Stock ◽  
Stochastic Frontier Analysis ◽  
Stochastic Frontier ◽  
Sensitivity Analyses ◽  
Frontier Analysis ◽  
Country Level ◽  
Scientific Papers ◽  
Catch Up ◽  
The Right ◽  
The Impact

The objective of this study is to examine the impact of international research and development (R&D) spillovers on innovation efficiency of specific R&D outcomes, employing the country-level panel data for 44 countries in the 1996–2013 period. Fully considering the heterogeneity of different R&D outputs, scientific papers, PCT (Patent Cooperation Treaty) patents, US patents, and domestic patents are observed separately, which enriches the angles of measuring international R&D spillovers. By applying a stochastic frontier analysis to knowledge production function, we find that foreign R&D capital stock positively contributes to the innovation efficiency of scientific papers, but suppresses the productivity of domestic patents, whereas it does not really matter for PCT or US patents. These results are robust to control for a set of institutional factors and also in sensitivity analyses. Hence, dependence on international R&D spillovers seems neither to be the right way for emerging economies to catch up, nor to be a sustainable model for developing countries to fill the technical gap. Local R&D capital stock, instead, keeps an essential contributor to all four R&D outputs, so raising internal R&D expenditure is actually the key to improving innovation level and sustainable development ability.

Intellectual capital: a determinant of firms' operational efficiency

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Kanishka Gupta ◽  
T.V. Raman
Keyword(s):  
Intellectual Capital ◽  
Stochastic Frontier Analysis ◽  
Stock Exchange ◽  
Stochastic Frontier ◽  
Value Added ◽  
Financial Sector ◽  
Operational Efficiency ◽  
Content Type ◽  
Frontier Analysis ◽  
The Impact

PurposeIntellectual capital (IC) has been recognized in improving the efficiency of businesses and gaining competitive edge in the developed world. The present study offers perspectives into the effect of IC on the efficiency of the Indian financial sector companies.Design/methodology/approachFor the purpose of evaluating efficiency, the research has used stochastic frontier analysis (SFA). All Indian financial sector companies listed in National Stock Exchange (NSE-500) for the timeframe of ten years (2008–2018) have been considered. The paper has employed modified Pulic's Value Added Intellectual Coefficient (VAICTM) as a proxy to measure IC. Correlation and panel data regression have been used in order to examine the relationship.FindingsThe results of the study indicate positive and significant relationship between IC and efficiency of the firm. The results also show that all the components of IC, that is, human capital, relational capital, process capital and capital employed have a significant impact on firms' efficiency. Additionally, it has been seen that sample companies do not invest in research and development leading to no innovation capital.Practical implicationsThe research will assist managers in managing and controlling the IC, investors in matters related to investment and financial experts in improving the company's IC and value creation.Originality/valueThe current research is one of the pioneering studies in the context of Indian financial sector that examines the impact of modified VAIC on operational efficiency calculated using SFA.

scholarly journals Socioeconomic Classes of University Students in Pakistan as Predictors of their Personality Traits: A Case Study

2021 ◽  
Vol 2 (2) ◽  
pp. 205-221
Author(s):  
Rafaqat Ali ◽  
Furrukh Bashir ◽  
Rashid Ahmad
Keyword(s):  
University Students ◽  
Personality Traits ◽  
Regression Models ◽  
Negative Impact ◽  
Positive Impact ◽  
Socioeconomic Class ◽  
Lower Socioeconomic ◽  
Negative Impacts ◽  
The Impact

The current study was heading for determining the impact of Pakistani university students’ socioeconomic classes on their personality traits. Demographic and personality questionnaires were filled by available university students online. The stepwise regression technique facilitated to generate regression models to define impacts of different socioeconomic classes on students’ different personality traits. Different regression models highlighted the significant negative impacts of the middle upper socioeconomic class on Agreeableness, Extraversion and Neuroticism personality traits. The lower socioeconomic class was found to have positive impact on only one personality sub-trait self-discipline. Whereas, the upper lower socioeconomic class caused positive impacts on students’ trust sub-trait, Conscientiousness trait and negative impact on excitement seeking sub-trait of personality. The importance of these impacts of socioeconomic classes on different personality traits and the possible implications are discussed with respect to university students’ academic performance and academic behaviour.

scholarly journals Determinants of Basmati Exports from Pakistan: A Panel Data Analysis

2021 ◽  
Vol 3 (1) ◽  
pp. 12-18
Author(s):  
Muhammad Munwar Hayat ◽  
Raheela Khatoon
Keyword(s):  
Panel Data ◽  
Method Of Moments ◽  
Negative Impact ◽  
Positive Impact ◽  
Panel Data Analysis ◽  
Generalized Method Of Moments ◽  
Trading Partner ◽  
Dummy Variable ◽  
Export Competitiveness ◽  
The Impact

This paper aims to estimate the impact of different factors of basmati exports from Pakistan to its trading partner. Results are obtained by using the Generalized Method of Moments (GMM) model and panel data methodology with a sample of 22 countries for the period of 2003-2019. To estimate the impact of different variables on basmati exports Generalized Method of Moments (GMM) model is used on the panel dataset. The results revealed that the inflation rate of Pakistan has a negative and significant effect on the export competitiveness of Pakistani basmati. The exchange rate of Pakistan has a positive and significant impact on the basmati export, the population of Pakistan has a negative and significant impact on basmati export. Basmati production in Pakistan also has a significant and negative impact on basmati export. The Gross Domestic Product (GDP) of Pakistan has a significant and positive impact on the basmati export while the GDP of the trading partner has a significant and negative impact on the basmati export. The dummy variable for joint border also has a positive and significant impact on basmati exports of Pakistan.

scholarly journals The Impact of Debt Burden on the Number of Suicides in the Russian Regions

2021 ◽  
Vol 17 (4) ◽  
pp. 97-117
Author(s):  
Svetlana Doroshenko ◽  
◽  
Olga Sanaeva ◽  
◽  
Keyword(s):  
Mental Disorders ◽  
Unemployment Rate ◽  
Rural Areas ◽  
Negative Impact ◽  
Generalized Method Of Moments ◽  
Russian Regions ◽  
Debt Burden ◽  
Suicide Rates ◽  
Number Of Patients ◽  
The Impact

Population size is one of the most important parameters of national social and economic systems. This parameter is controlled by a variety of factors (components) that form ambiguous and complex feedback circuits. The most important issue is the study of the behavioral reactions of the population, which form certain parameters of the dynamics of the population. The authors consider only one behavioral reaction that seems to them to be important – the propensity for suicide, which ultimately leads to the formation of the suicide dynamics and which entails serious socio-economic and demographic losses. We put an emphasis on assessing the impact of financial parameters, namely households’ debt burden, on the suicide rates in the Russian regions. An econometric assessment of the influence of individual debt on the number of suicides among other socio-economic factors (unemployment rate, logarithm of GRP per capita, divorce rate, number of patients with mental disorders, average actual working week, number of alcoholics) was carried out for the regions among rural, urban populations and total. We use panel data for 80 Russian regions covering the period from 2005 to 2018. We apply the generalized method of moments (GMM) using Stata 14 statistical package. The empirical analysis demonstrates negative impact of the amount of individual debt on the number of suicides in the regions of Russia, which contradicts the results of similar studies conducted for developed economies. At the same time, some results obtained earlier in domestic and foreign studies have been confirmed, including an existence of a parabolic (U-shaped) dependence between the length of working hours and the suicide rates in the regions of the Russian Federation. In addition, there is a direct connection between an increase in the committed suicides and an increase in divorce rates and the number of patients with mental disorders. Moreover, we find out that the rise in unemployment rate and alcohol consumption leads to an increase in the number of committed suicides. This effect is especially perceptible among the people living in rural areas

scholarly journals The Impact of Inflation Volatility on an Enterprise’s Innovation Strategy

2019 ◽  
Vol 8 (12) ◽  
pp. 193-197
Keyword(s):  
Fixed Effects ◽  
Negative Impact ◽  
Generalized Method Of Moments ◽  
Estimation Method ◽  
Innovation Strategy ◽  
Potential Output ◽  
Economic Agents ◽  
Inflation Volatility ◽  
High Inflation ◽  
The Impact

The objective of the study was to determine the effect of inflation volatility on an enterprise's innovation strategy. The study showed that increasing inflation leads to a decrease in the stationary level of potential output, as well as to a decrease in the rate of economic growth in the process of transition to a stationary state. A formula is proposed for calculating the total effect of inflation on the level of enterprise output. The negative impact of the inflation rate on the welfare of economic agents was revealed, which is expressed in the fall in their equilibrium consumption level. Higher-income countries have been shown to suffer more from high inflation than poorer countries. All conclusions made in the analysis of the dynamic model of the impact of inflation on potential output are verified based on econometric modelling using methods and models for panel data: models with fixed effects, models with random effects, and a generalized method of moments. Moreover, the obtained empirical results are stable concerning changes in the specification of the equation and estimation method

Is Italian R&D spending becoming more efficient?

2009 ◽  
pp. 187-198
Author(s):  
Andrea Conte
Keyword(s):  
Stochastic Frontier Analysis ◽  
Stochastic Frontier ◽  
Jel Classification ◽  
Economic Downturn ◽  
Economic Data ◽  
Frontier Analysis ◽  
Empirical Estimates ◽  
Cross Country ◽  
Over Time

- The recent economic downturn is putting increasing pressure on governments to improve the quality of their public finances. Using macro-economic data on R&D expenditures and patents, this paper aims to determine whether business and government R&D spending has become more efficient over time and in comparison to other EU countries. Descriptive evidence is coupled with empirical estimates of cross-country efficiency of R&D expenditure calculated by the Stochastic Frontier Analysis. . Keywords: R&D, patents, efficiency, public finance Parole chiave: R&S, brevetti, efficienza, finanza pubblica. Jel Classification: O33 - H50 - C23

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