scholarly journals The role of Fiscal Institutional Context on primary balance. A case study for European country groups with cultural differences

2021 ◽  
pp. 1-10
Author(s):  
Dimitra Mitsi
Keyword(s):  
European Country ◽  
Cultural Differences ◽  
Fixed Effects ◽  
Institutional Context ◽  
Fiscal Rules ◽  
Estimation Methods ◽  
Macroeconomic Forecasting ◽  
Fiscal Institutions ◽  
Panel Data Estimation ◽  
The Impact

Many countries have introduced fiscal institutions (fiscal rules and fiscal councils) to deter fiscal indiscipline, reduce macroeconomic forecasting bias and enhance the credibility of fiscal policy. In this study, we use a theoretical model in order to examine how the existence of a fiscal council can reduce a country’s debt. In addition, we examine the impact of fiscal institutions on primary balance in 2 European country groups (PIIGCS and DFGNS countries) that have cultural differences. The analysis builds on panel data estimation methods of fixed effects and random effects depending on the Hausman test results. This study finds that the fiscal institutional context (frifc) has a positive and significant effect on PB. More specifically, we find that one change in fiscal institutional context improves PB by a factor of 0.925 and 1.181 in PIIGCS countries and DFGNS countries, respectively.

scholarly journals Added-variable plots for panel-data estimation

2020 ◽  
Vol 20 (1) ◽  
pp. 30-50
Author(s):  
John Luke Gallup
Keyword(s):  
Panel Data ◽  
Fixed Effects ◽  
Regression Line ◽  
Estimation Methods ◽  
Panel Data Estimation ◽  
Regression Parameters ◽  
Added Variable Plots ◽  
Relationship Of ◽  
The Impact ◽  
Data Estimation

In this article, I extend the theory of added-variable plots to three panel-data estimation methods: fixed effects, between effects, and random effects. An added-variable plot is an effective way to show the correlation between an independent variable and a dependent variable conditional on other independent variables. In a multivariate context, a simple scatterplot showing x versus y is not adequate to show the relationship of x with y, because it ignores the impact of the other covariates. Added-variable plots are also useful for spotting influential outliers in the data that affect the estimated regression parameters. Stata can display added-variable plots with the command avplot, but it can be used only after regress. My new command, xtavplot, is a postestimation command that creates added-variable plots after xtreg estimates. Unlike avplot, xtavplot can display a confidence interval around the fitted regression line.

scholarly journals A Crook is a Crook . . . But is He Still a Crook Abroad? On the Effect of Immigration on Destination-Country Corruption

2015 ◽  
Vol 16 (4) ◽  
pp. 464-489 ◽  
Author(s):  
Eugen Dimant ◽  
Margarete Redlin ◽  
Tim Krieger
Keyword(s):  
Method Of Moments ◽  
Fixed Effects ◽  
Generalized Method Of Moments ◽  
Destination Country ◽  
Estimation Methods ◽  
Econometric Methodology ◽  
Migration Flows ◽  
The Difference ◽  
Method Of Moments Estimator ◽  
The Impact

AbstractThis paper analyzes the impact of migration on destination-country corruption levels. Capitalizing on a comprehensive dataset consisting of annual immigration stocks of OECD countries from 207 countries of origin for the period 1984-2008, we explore different channels through which corruption might migrate. We employ different estimation methods using fixed effects and Tobit regressions in order to validate our findings. Moreover, we also address the issue of endogeneity by using the Difference- Generalized Method of Moments estimator. Independent of the econometric methodology, we consistently find that while general migration has an insignificant effect on the destination country’s corruption level, immigration from corruption-ridden origin countries boosts corruption in the destination country. Our findings provide a more profound understanding of the socioeconomic implications associated with migration flows.

Arming for conflict, arming for peace? How small arms imports affect intrastate conflict risk

2021 ◽  
pp. 073889422110459
Author(s):  
Andreas Mehltretter
Keyword(s):  
Fixed Effects ◽  
Formal Model ◽  
Estimation Methods ◽  
Conflict Prevention ◽  
Intrastate Conflict ◽  
Small Arms ◽  
Conflict Risk ◽  
The Impact ◽  
Risk Reducing ◽  
Events Data

Although a prevalent technology of conflict, the impact of small arms imports on the risk of intrastate conflict outbreak has not been examined so far. This article argues that small arms not only enhance general military capabilities, but also contribute to state capacities necessary for conflict prevention. These two mechanisms are incorporated in a formal model of power shifts. The derived hypotheses are tested on 146 countries for the period 1993–2014. Using split-population and penalized fixed-effects logit models as innovative estimation methods for rare-events data, small arms imports are found to have no or even a risk-reducing impact.

scholarly journals Cultural change and the migration choice

2021 ◽  
Author(s):  
Mauro Lanati ◽  
Alessandra Venturini
Keyword(s):  
Cultural Differences ◽  
Cultural Change ◽  
Fixed Effects ◽  
Bilateral Trade ◽  
Genetic Traits ◽  
Cultural Proximity ◽  
World Econ ◽  
Cultural Affinity ◽  
The Impact ◽  
Over Time

AbstractCultural differences play an important role in shaping migration patterns. The conventional proxies for cross country cultural differences, such as common language; ethnicity; genetic traits; or religion, implicitly assume that cultural proximity between two countries is constant over time and symmetric. This is far from realistic. This paper proposes a gravity model for international migration which explicitly allows for the time varying and asymmetric dimensions of cultural proximity. In accordance with Disdier, Tai, Fontagné, Mayer (Rev World Econ, 145(4):575–595, 2010) we assume that the evolution of bilateral cultural affinity over time is reflected in the intensity of bilateral trade in cultural goods. The empirical framework includes a comprehensive set of high dimensional fixed effects which enable identification of the impact of cultural proximity on migration over and beyond the effect of pre-existing cultural and historical ties. The results are robust across different econometric techniques and suggest that positive changes in cultural relationships over time foster bilateral migration.

scholarly journals Does the Quality of Fiscal Institutions Matter for Fiscal Performance? A Panel Data Analysis of European Countries

2020 ◽  
Vol 13 (1) ◽  
pp. 33
Author(s):  
Mitsi Dimitra
Keyword(s):  
Panel Data ◽  
Political Stability ◽  
Sustainable Growth ◽  
European Countries ◽  
Fiscal Rules ◽  
Fiscal Institutions ◽  
Panel Data Estimation ◽  
Fiscal Performance ◽  
Data Estimation ◽  
Fiscal Frameworks

The last decade, the number of fiscal frameworks such as national fiscal rules and independent fiscal councils have increased, significantly as a consequence of fiscal indiscipline in many European Countries. In the wake of economic crisis in 2007, fiscal laxity and unsustainable public finances made the European Union to strengthen its fiscal policy in many ways in order to create an economic environment of macroeconomic stability and sustainable growth. This paper investigates the role of fiscal frameworks (fiscal rules and fiscal councils) on fiscal performance as well as the impact of other types of institutions, namely Worldwide Governance Indicators on primary balance. The empirical analysis builds on a reaction function proposed by Bohn (1998) while the estimation method builds on a fixed effect panel data estimation and a dynamic panel data estimation of Arellano-Bover and Blundell-Bond. Our main results provide that political stability, government effectiveness, fiscal rules and fiscal councils play an important role for improving fiscal performance. However, the effect of fiscal institutions on primary balance changes among different types of fiscal rules (debt rules, expenditure rules and budget balanced rules) and independent fiscal councils or fiscal councils that have access to information, respectively.

The Impact of FDI Inflows and Outflows on Economic Growth: An Empirical Study of some Developed and Developing Countries

2019 ◽  
Vol 6 (1) ◽  
pp. 129-157
Author(s):  
Younis Ali Ahmed ◽  
Roshna Ramzi Ibrahim
Keyword(s):  
Economic Growth ◽  
Developing Countries ◽  
Panel Data ◽  
Fixed Effects ◽  
Positive Impact ◽  
Developed Countries ◽  
Fdi Inflows ◽  
Panel Data Estimation ◽  
The Impact ◽  
Data Estimation

FDI is an investment including a long-term relationship and reflecting a lasting interest and control of a resident entity in one economy. FDI is a combination of capital, technology, marketing and management. Based on the Neoclassical, Exogenous and modern theories FDI has a positive role in accelerating economic growth and development. Many countries are improving their economy in order to attract FDI.  The main objective of this study is to examine the impact of FDI inflows and outflows on economic growth of developed countries such as (USA, UK and France) and developing countries such as (Malaysia, Turkey and Iran) from (1980 to 2017). To accomplish that, ARDL approach and panel data estimation were used. The empirical findings reveal that the FDI inflows and outflows for developed countries (US and UK) have a positive impact on economic growth (GDP), while the FDI inflows of France have a negative impact. Nevertheless, FDI inflows and outflows for developing countries of (Malaysia, Turkey, and Iran) have a positive impact on economic growth. The result of panel data estimation shows that Fixed effects model is appropriate for estimating the parameters. In conclusion, Developing countries should diversify their FDI inflows and outflows to cover all the sectors and they should benefit from the developed countries’ experiences with higher impact of FDI on economic growth.

scholarly journals IMPACT OF BOARD STRUCTURE ON FIRM PERFORMANCE IN THE NIGERIAN MANUFACTURING SECTOR

2018 ◽  
Vol 3 (1) ◽  
pp. 56-65
Author(s):  
Rogers A. Akinsokeji
Keyword(s):  
Firm Performance ◽  
Firm Size ◽  
Fixed Effects ◽  
Manufacturing Sector ◽  
Manufacturing Firms ◽  
Board Structure ◽  
Board Size ◽  
General Behaviour ◽  
Panel Data Estimation ◽  
The Impact

In this study, the impact of board structure on firm performance is empirically examined using a large cross section of 50 manufacturing firms in Nigeria and the panel data estimation technique. Both the random and fixed effects methods are adopted to provide robust estimates from the pooled data for the firms over a ten-year period (2005-2014) and the estimations are performed using two measures of firm performance and three measures of board structure. The empirical results from the analysis show that board structure has a significant impact on performance of manufacturing firms in Nigeria. The main source of the impact is through board independence and faintly through board size. However, board composition seems to exert very little effect on firm performance for the sample in the study. Also, firm size is shown to be an essential factor in explaining the general behaviour of firm performance and the pattern of effect that board structure has on firm performance. The effect of size is observed by controlling for it in the performance estimations. The study shows that firm size tends to improve the effect of board structure on performance, apart from EPS. The optimization of board size and composition is desirable for performance especially in a setting like Nigeria with diverse firm characteristics.

scholarly journals Impact of Non-Performing Loans on Bank’s Profitability: Empirical Evidence from Commercial Banks in Tanzania

2018 ◽  
Vol 6 (01) ◽  
Author(s):  
Peter Stephen Kingu ◽  
Dr Salvio Macha ◽  
Dr Raphael Gwahula
Keyword(s):  
Regression Analysis ◽  
Information Asymmetry ◽  
Commercial Banks ◽  
Fixed Effects ◽  
Ordinary Least Squares ◽  
Descriptive Statistics ◽  
Estimation Methods ◽  
Policy Makers ◽  
Managerial Implications ◽  
The Impact

This study examined the impact of Non-performing loans on bank’s profitability using information asymmetry theory and bad management hypothesis. This study adopted causality research design using panel data (2007 to 2015) of 16 commercial banks in Tanzania. The study employed Descriptive statistics and multiple regression analysis estimation methods. Likewise, Ordinary Least-Squares (OLS) regression technique was also used, and then Fixed Effects (FE) and Random Effects (RE) assumptions were considered. The study found that occurrence of non-performing loans is negatively associated with the level of profitability in commercial banks in Tanzania. The results extend further the information asymmetry theory and bad management hypothesis. The findings of the study have both theoretical and managerial implications for practitioners and policy-makers

scholarly journals Does Trade Openness Affect Bank Risk-Taking Behavior? Evidence from BRICS Countries

Economies ◽  
2020 ◽  
Vol 8 (3) ◽  
pp. 75 ◽  
Author(s):  
Mohammed Mizanur Rahman ◽  
Munni Begum ◽  
Badar Nadeem Ashraf ◽  
Md. Abdul Kaium Masud
Keyword(s):  
Risk Taking ◽  
Fixed Effects ◽  
Trade Openness ◽  
Least Square ◽  
Estimation Methods ◽  
Bank Risk ◽  
Brics Countries ◽  
Long Run ◽  
Risk Taking Behavior ◽  
The Impact

In this paper, we examine the impact of trade openness on bank risk-taking behavior employing a panel dataset of 899 banks from the BRICS (i.e., Brazil, Russia, India, China, and South Africa) countries over the period 2000–2017. We find that higher trade openness lowers bank risk-taking. Our results are robust when we use alternative proxies of trade openness and bank risk-taking, estimate country-wise regressions, or use alternative estimation methods such as system Generalized Methods of Moments (GMM), fixed effects, pooled Ordinary Least Square (OLS), and Vector Error Correction Model (VECM) models. We also observe higher trade openness decreases bank risk-taking in both the short and long run. Moreover, banks in more open countries perform relatively better during the crisis period further signifying the diversification benefits of openness. Together, our findings imply the beneficial impact of trade openness for financial sector stability.

scholarly journals Panel Data Estimation Methods on Supply and Demand Elasticities: The Case of Cotton in Greece

2011 ◽  
Vol 43 (1) ◽  
pp. 111-129 ◽  
Author(s):  
Christina Kotakou
Keyword(s):  
Panel Data ◽  
Fixed Effects ◽  
Statistical Significance ◽  
Supply And Demand ◽  
Estimation Methods ◽  
Farm Size ◽  
Data Sets ◽  
Panel Data Estimation ◽  
Cotton Price ◽  
Data Estimation

This article examines the effects of the application of panel data estimation methods on a system of equations with unbalanced panel data. We apply pooled, random-effects, and fixed-effects estimation in three data sets: small, medium, and large farms to examine the relationship between farm size and the elasticity of cotton supply with respect to cotton price. Our results indicate that the adoption of various estimation methods entails different estimated parameters both in terms of their absolute value and in terms of their statistical significance. Additionally, the elasticity of cotton supply with respect to price varies according to farm size.

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