Assessment of the Effect of Technological Innovations on Unemployment in the European Union Countries

Innovation and unemployment are two economic elements related to each other that have been constantly analyzed in the economic debates from the beginning of the 21st century. A classical question is whether innovation creates or destroys jobs. The conventional approach contemplates innovation as a transformation instrument of an economy, resulting in economic growth and jobs creation. Another approach points out to various mechanisms which can compensate the primary effect of innovations and cause an ultimate effect of innovations on labour demand to be unclear. In view of the fact that there are many different explanations about the impact of innovations on labour demand, this paper, after the analysis of theoretical and empirical scientific literature in this field, provides an empirical analysis with unemployment as the dependent variable. The authors use data from 28 European Union countries for the period of 1992–2016 and pursue to research how technological innovations affect unemployment rate. There are two core independent variables – expenditure on R&D (research and development) and number of patent applications – as the main proxies for technological innovations. Control variables that affect unemployment are included to the model as well. The model was estimated using a dynamic two-step System Generalized Method of Moments (GMM-SYS) of a panel data system. After the composition of 12 different estimations of the model, the results suggest that, in some cases, technological innovations affect unemployment.

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Correlation between misinvoicing and non-tariff measures for Turkey's exports to the EU

Acta Oeconomica ◽

10.1556/032.2021.00016 ◽

2021 ◽

Vol 71 (2) ◽

pp. 327-346

Author(s):

Ayşegül Karataş ◽

Halil Şimdi ◽

Büşra Garip

Keyword(s):

European Union ◽

Method Of Moments ◽

Tax Evasion ◽

Generalized Method Of Moments ◽

Negative Relationship ◽

The European Union ◽

Corporate Tax ◽

Price Manipulation ◽

The Impact ◽

The Eu

AbstractMany researchers have analysed the factors that cause discrepancies in the mirror trade statistics. However, the conflicting findings of the relatively limited number of studies on the relation between non-tariff measures and misinvoicing make further research in this area necessary. Therefore, our paper aimed to analyse the impact of non-tariff measures on misinvoicing in the context of Turkey's exports to the European Union (EU) between 2008 and 2015. This study tested the possible relationship between them using other measurable variables related to Turkey's exports to the EU of the products to which the non-tariff measures were applied. This has been done by employing the dynamic generalized method of moments (GMM) as well as the quantile regression (QR) models. It was observed that tariffs, along with non-tariff measures, have negative relationship with the misinvoiced amount. Additionally, it is also observed that the transfer price manipulation appears to be a means of corporate tax evasion. This finding aligns with the decrease in reported imports and the decrease in the perceived levels of corruption.

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The Effect of the European Union Customs Union on the Balance of Trade in Turkey

Foreign Trade Review ◽

10.1177/0015732516660801 ◽

2017 ◽

Vol 52 (4) ◽

pp. 219-232 ◽

Cited By ~ 3

Author(s):

Natalya Ketenci

Keyword(s):

European Union ◽

Gravity Model ◽

Generalized Method Of Moments ◽

Oecd Countries ◽

Dynamic Panel Data ◽

Customs Union ◽

The European Union ◽

Before And After ◽

Balance Of Trade ◽

The Impact

This article investigates the effect of the customs union between Turkey and the European Union on the balance of trade in Turkey. The framework for analysis is an extended trade gravity model onto which the impact of the customs union is applied. The gravity model of trade is estimated using dynamic panel data which applies the generalized method of moments to a sample of OECD countries. Separate estimates were made for the periods before and after the process of trade liberalization in Turkey—1980–1995 and 1996–2012, respectively—as well as for the full period—1980–2012. The main conclusion is that when the European Union is accounted for as an econometric variable, the empirical results are striking: Turkey’s gains resulting from taking part in the customs union are noteworthy, with significant improvement in the trade balance with European Union countries. However, the trade flows, and specifically imports, have been mainly with OECD countries that are themselves not members of the EU. The model indicates that external common tariffs are responsible for Turkey’s trade growth rather than tariffs abolished in the internal market of the customs union.

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MACROECONOMIC ANALYSIS OF THE EFFECTIVENESS OF TAX ECONOMIC REFORMS IN EU COUNTRIES

Vìsnik Sumsʹkogo deržavnogo unìversitetu ◽

10.21272/1817-9215.2019.2-5 ◽

2019 ◽

pp. 36-45

Author(s):

I. Marekha ◽

V. Myrhorodska

Keyword(s):

European Union ◽

Correlation Analysis ◽

Environmental Taxes ◽

Environmental Tax ◽

The European Union ◽

Macroeconomic Factors ◽

Eu Countries ◽

European Union Countries ◽

The Impact ◽

The Eu

The article substantiates the necessity to introduce systematic and effective tax eco-reforms in the context of resource-oriented economic development by the European Union countries. The performance and effectiveness of the reforms are estimated in relation to the main four groups of environmental taxes: energy taxes, pollution taxes, resource taxes and transport taxes. The macroecological policy of the European Union countries is the object of the undertaken analysis. The article examines the impact of macroeconomic factors on environmental taxes across the EU, using a correlation analysis toolkit. Four groups of macroeconomic parameters were selected for analysis: internal macroeconomic factors (nominal GDP, real GDP, inflation, business cycle stage, budget deficit, energy consumption level); external macroeconomic factors (government debt, exports, foreign direct investments); institutional macroparameters (environmental culture, shadow economy, trust in government) and fiscal macroparameters (tax culture and fiscal freedom). The economic interpretation of the obtained correlates is given. Based on the correlation analysis, stimulators and de-stimulators of tax environmental reforms across the EU were identified. It is established that the factors that positively influence on the tax environmental reforms are the overwhelming majority of the analyzed factors. The formation of indicators of the effectiveness of tax environmental reforms is undertaken for six countries of the Community. In particular, the analysis covers three economic leaders (Germany, the United Kingdom and France) and three leading EU countries in the field of environmental tax collection (Latvia, Greece and Slovenia). The article presents approaches to improving the assessment of the effectiveness of tax environmental reforms based on the consideration of fiscal (budget-filling) and reproductive (multiplicative) functions of environmental taxes. In this regard, the environmental tax multiplier and accelerator, as well as the GDP elasticity coefficient for environmental taxes, were calculated for the analyzed group of countries. The criteria of economic efficiency of tax eco-reforms are proposed. Keywords: environmental taxes, macroeconomic effect, macro-environmental policy, multiplier, accelerator, elasticity

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Determinants of Public Indebtedness in European Union Countries

e-Finanse ◽

10.2478/fiqf-2018-0021 ◽

2018 ◽

Vol 14 (3) ◽

pp. 76-86

Author(s):

Janusz Kudła

Keyword(s):

European Union ◽

Interest Rate ◽

Public Debt ◽

Dynamic Panel ◽

Independent Variables ◽

Panel Regressions ◽

General Government ◽

European Union Countries ◽

The Impact ◽

Growth Differential

AbstractThe paper strives to determine the impact of fiscal variables on factors determining the dynamics of public debt in European Union countries. Based on the literature, the dynamics of public debt are determined by changes of three elements: the primary balance, interest-rate-growth-differential and the change of government assets. Therefore, it seems reasonable to estimate the dynamics of these three values to find the variables crucial for limiting the growth of public debt. Three groups of dynamic panel regressions were estimated based on the one-step Generalized Method of Moments. The data was collected for the 1995-2015 period for 27 EU countries. Dependent variables included: primary balance, interest-rate-growth-differential and change of government assets. Independent variables consisted of: interest payable to GDP ratio, unemployment rate, squared unemployment rate, FDI stock to GDP, net FDI inflow to GDP, general government expenditures to GDP, share of social security expenditures and openness of the economy measured by the ratio of export and import to GDP. On the basis of statistical data, three components of debt changes were distinguished, and estimations of the dynamic panel regressions were applied to find the impact of independent variables. According to the basic models, the primary balance is lower for: countries with higher unemployment, greater FDI stock and higher general government expenditures. The interest-rate-growth-differential is lower in the case of: high subsidies and for a more open economy. However, unemployment and FDI remain the most important determinants of this variable. The change of government’s assets ratio decreases as FDI net inflows or the share of expenditures to GDP increase as well as in the case of very high unemployment.

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Does Country Risk Affect Banking Efficiency: Empirical Evidence from Turkey and Selected Countries from the European Union

Global Business Review ◽

10.1177/0972150920933973 ◽

2020 ◽

pp. 097215092093397

Author(s):

Anwar Al-Gasaymeh ◽

Miral R. Samarah

Keyword(s):

European Union ◽

Banking Sector ◽

Stochastic Frontier Analysis ◽

Generalized Method Of Moments ◽

Country Risk ◽

The European Union ◽

Banking Efficiency ◽

Frontier Analysis ◽

The Impact ◽

The Eu

This study explores the readiness of the Turkish banking sector for its accession to the European Union (EU). Obviously, the job is not finished yet, with the challenges of introducing country risk variables and their impact on banking efficiency. Although efficiency analysis remains an important issue in economic studies to answer whether the Turkish banking sector is ready for the accession to the EU. Therefore, this study aims to investigate the impact of country risk levels on banking efficiency in Turkey and the EU in recent years, using stochastic frontier analysis for a parametric technique for the period 2010–2018. In the second stage, efficiency measures are used to investigate the effect of country risk and macroeconomic variables, applying the generalized method of moments. The results suggest that the banking sector operating in a country with low risk tends to perform more efficiently.

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Government expenditure and economic growth in the European Union countries: New evidence

Bulletin of Geography. Socio-economic Series ◽

10.1515/bog-2017-0020 ◽

2017 ◽

Vol 36 (36) ◽

pp. 127-133 ◽

Cited By ~ 2

Author(s):

Marta Pascual Sáez ◽

Santiago Álvarez-García ◽

Daniela Castañeda Rodríguez

Keyword(s):

Economic Growth ◽

European Union ◽

Government Spending ◽

Government Expenditure ◽

The European Union ◽

The Public ◽

European Union Countries ◽

The Impact ◽

New Evidence ◽

The Relationship

AbstractThis paper provides new evidence of the impact of government spending on economic growth in the European Union countries. Governments can adjust their levels of spending in order to influence their economies, although the relationship between these variables can be positive or negative, depending on the countries included in the sample, the period of estimation and the variables which reflect the size of the public sector. The results obtained based on regression and panel techniques suggest that government expenditure is not clearly related with economic growth in the European Union countries over the period 1994-2012.

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Effects of Openness on Employment in Turkey and EU Countries

International Conference on Eurasian Economies 2014 ◽

10.36880/c05.01135 ◽

2014 ◽

Author(s):

Zekai Özdemir ◽

İlkay Noyan Yalman ◽

Çağatay Karaköy

Keyword(s):

European Union ◽

Foreign Trade ◽

Current Account Deficit ◽

Panel Data Analysis ◽

The European Union ◽

Trade Effect ◽

European Union Countries ◽

Accession Process ◽

New Research ◽

The Impact

According to the general theory, it is recognized that exports increase employment. Recently, in the world economy, increasing unemployment, foreign trade of the impact on employment has led to new research. Many of the aforementioned studies validating the theory, some of them have different results. In recent studies in Turkey was a different result. In this study, Turkey and the European Union countries in terms of trade effect on employment will be examined. For this purpose, employment and foreign trade data for the years 2000-2012 using a panel data analysis will be done. Exports, imports, wages, and production depending on the change in employment and the interaction will be investigated. Depending on available data at the sectoral level, there will be a distinction. Especially in the last ten years, the recession and rise in unemployment in Europe will be discussed with the relevant dynamics. In Turkey, the current account deficit, growth, unemployment issues are noteworthy. European Union accession process, Turkey and the European Union countries in the comparison will be significant in the economic indicators.

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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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The effects of exchange rate on balance trade and on monetary aggregates of macedonia and the impact of the current world crisis in its economy

ILIRIA International Review ◽

10.21113/iir.v2i2.153 ◽

2012 ◽

Vol 2 (2) ◽

pp. 238

Author(s):

Mr.Sc. Kadishe Limani ◽

Mr.Sc. Jeta Hani

Keyword(s):

European Union ◽

Exchange Rate ◽

Flexible Exchange Rate ◽

Optimal Choice ◽

The European Union ◽

Main Hypothesis ◽

Monetary Aggregates ◽

European Union Countries ◽

Balance Trade ◽

The Impact

Macedonia is a country that is close related to the European Union countries where the majority of the Macedonian foreign trade is with the European Union countries (52%). So the Macedonian economy is in a high level dependency of Euro. Since Denar is connected closely to Euro, and the level of its usage in everyday economic activity is close to the usage of Denar, it is obvious to be discussed as a dilemma whether Macedonia should have Euro as its currency. However, the problem lies in that whether it is the right time for such action as the best solution for Macedonian economy, keeping in mind the fact that in the international arena there is present a second crisis that is the crisis of Euro-Zone.Based on various sources and on our econometric results, in this paper is argued and supported the main hypothesis that the fix exchange rate for Macedonia is a more optimal choice in comparison with the unilateral euroisation and flexible exchange rate. Thus, during the research we found out some arguments that support the existing regime, such as: under a flexible regime an eventual devaluation of the Denar is more possible, which can lead to more negative effects on the economy than benefits. Thus, devaluation of the Denar will have no significant effects on the balance trade (export and imports) and GDP. This means that the competitiveness of a country relies on the other factors. In addition an eventual devaluation of the Denar, it will not have significant effects on monetary aggregates (M2 and M4) due to the asset substitution from Denar deposits to foreign deposits and vice-versa.

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Impact of Selected Determinants on the Choice of Sources of Financing in the Energy Companies of the Visegrád Group

Socialiniai tyrimai ◽

10.21277/st.v41i2.256 ◽

2018 ◽

Vol 41 (2) ◽

Author(s):

Nicole Škuláňová

Keyword(s):

Method Of Moments ◽

Generalized Method Of Moments ◽

Main Research ◽

Independent Variables ◽

Funding Sources ◽

Equity Ratio ◽

The Subject ◽

Energy Companies ◽

The Impact ◽

Visegrad Group

Decision-making about capital structure is one of the basic decisions in each company, and therefore its analysis is the subject of this article. The importance of this theme corresponds to countless literature. This article aims to assess the impact of four determinants, selected by a review of earlier studies, on the choice of funding sources. The examined sample contains the energy companies of the Visegrád Group during the period 2009–2017. The data was obtained from Orbis and Eurostat database. The main research methods are correlation analyses and Generalized Method of Moments that are performed using EViews. The debt-equity ratio is used as the dependent variable. The independent variables are the growth rate of GDP, profitability, asset structure, and liquidity. For all countries, the influence of profitability on indebtedness was found. For Hungary, this relationship was negative, for remaining countries positive.

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