The Impact of Economic Freedom on Creating Happiness and Inequality: International Evidences

Estimation Method ◽

Generalized Least Squares ◽

Dynamic Panel Data ◽

Human Beings ◽

The Common ◽

It is remaining a big question in happiness economics, what is the common motto of human beings? What human beings want to achieve? Are these, money, good job, position, power, peace, good living condition, good health, good family, good environment and what others? All researchers from different disciplines are investigating to solve this economic problem and Most of the researchers agreed that happiness is the common aim of everyone in the world. The paper entitled “Does Economic Freedom Create Happiness or Inequality?” is estimated the effect of economic freedom on happiness by using other control variables like Gross Domestic Product growth, per capita and inequality. The paper analyzed the panel data covering 120 countries from 2008 to 2016. The fixed and random effect, the Generalized Least Squares, First in Difference and Linear Dynamic Panel Data/generalized method of moments estimation method are applied as the econometric strategies in this paper. The results found that the statistically significant and strong linear positive association between economic freedom and happiness in overall sampled countries and also found the positive linear association between income with happiness and a negative association between economic freedom and inequality and inequality and happiness.

Globalization, economic freedom, and wage inequality: A panel data analysis

Panoeconomicus ◽

10.2298/pan130515024y ◽

2016 ◽

Vol 63 (5) ◽

pp. 581-601 ◽

Cited By ~ 3

Author(s):

Gülsün Yay ◽

Hüseyin Taştan ◽

Asuman Oktayer

Keyword(s):

Panel Data ◽

Wage Inequality ◽

Economic Freedom ◽

Panel Data Analysis ◽

Oecd Countries ◽

Dynamic Panel Data ◽

Wage Distribution ◽

Data Set ◽

Economic Freedom Index ◽

This paper examines the impact of globalization and liberalization on wage inequality using the KOF globalization index, the Economic Freedom Index (EFI) of the Fraser Institute and the Theil industrial pay inequality statistic compiled by the University of Texas Inequality Project (UTIP). Both static and dynamic fixedeffects models are estimated using a 5-year panel data set consisting of about 90 developed and developing countries for the 1970-2005 period. Estimation results from the dynamic panel data specification suggest that wage inequality has a significant and slowly changing component. The overall KOF and EFI indexes are found to be statistically insignificant in the full sample, but the results show that economic freedom is associated with more wage inequality, especially in Organisation for Economic Co-operation and Development (OECD) countries. The estimation results from country groups indicate that more deregulation is associated with more earnings inequality in OECD countries. The results from the models with subcomponents of the EFI imply that access to sound money has a negative effect on wage inequality. A more stable price system in an economy implies a more equal wage distribution in emerging markets (EM), non-OECD countries, and European Union (EU).

Impact of Trade Openness on Food Security: Evidence from Panel Data for Central Asian Countries

Foods ◽

10.3390/foods10123012 ◽

2021 ◽

Vol 10 (12) ◽

pp. 3012

Author(s):

Zhilu Sun ◽

Defeng Zhang

Keyword(s):

Food Security ◽

Panel Data ◽

Trade Openness ◽

Dynamic Panel Data ◽

Asian Countries ◽

Central Asian ◽

The World ◽

Central Asian Countries ◽

The problem of food insecurity has become increasingly critical across the world since 2015, which threatens the lives and livelihoods of people around the world and has historically been a challenge confined primarily to developing countries, to which the countries of Central Asia, as typical transition countries, cannot be immune either. Under this context, many countries including Central Asian countries have recognized the importance of trade openness to ensure adequate levels of food security and are increasingly reliant on international trade for food security. Using the 2001–2018 panel data of Central Asian countries, based on food security’s four pillars (including availability, access, stability, and utilization), this study empirically estimates the impact of trade openness and other factors on food security and traces a U-shaped (or inverted U-shaped) relationship between trade openness and food security by adopting a panel data fixed effect model as the baseline model, and then conducts the robustness test by using the least-squares (LS) procedure for the pooled data and a dynamic panel data (DPD) analysis with the generalized method of moments (GMM) approach, simultaneously. The results show that: (1) a U-shaped relationship between trade openness and the four pillars of food security was found, which means that beyond a certain threshold of trade openness, food security status tends to improve in Central Asian countries; (2) gross domestic product (GDP) per capita, GDP growth, and agricultural productivity have contributed to the improvement of food security. Employment in agriculture, arable land, freshwater withdrawals in agriculture, population growth, natural disasters, and inflation rate have negative impacts on food security; and (3) this study confirms that trade policy reforms can finally be conducive to improving food security in Central Asian countries. However, considering the effects of other factors, potential negative effects of trade openness, and vulnerability of global food trade network, ensuring reasonable levels of food self-sufficiency is still very important for Central Asian countries to achieve food security. Our research findings can provide scientific support for sustainable food system strategies in Central Asian countries.

INTANGIBLE DETERMINANTS OF MARKET VALUE IN THE NEW ECONOMY: A DYNAMIC PANEL DATA ANALYSIS OF THE INDIAN SOFTWARE INDUSTRY

The Singapore Economic Review ◽

10.1142/s0217590809003392 ◽

2009 ◽

Vol 54 (03) ◽

pp. 379-398 ◽

Cited By ~ 6

Author(s):

SUPRIYO DE

Keyword(s):

Panel Data ◽

Intangible Assets ◽

Software Industry ◽

Market Value ◽

Dynamic Panel Data ◽

Dynamic Panel ◽

Market Values ◽

Software Firms ◽

Intangible assets like human capital and organization capital have driven the success of India's software industry. This article analyzes the impact of intangible assets on the market value of Indian software firms using a dynamic panel data model. Measures of tangible and intangible assets are constructed using firm-level panel data. The estimation technique uses system generalized method of moments (GMM) and minimum distance estimation (MDE). This methodology accounts for unobserved firm heterogeneity, endogenous explanatory variables and persistent variables. The results conclusively show that intangible assets have a significant impact on market values of Indian software firms.

BANK TECHNICAL EFFICIENCY, PURE TECHNICAL EFFICIENCY AND SCALE EFFICIENCY, DOES ECONOMIC FREEDOM MATTER? EVIDENCE FROM CENTRAL EUROPE

Advanced International Journal of Banking, Accounting and Finance ◽

10.35631/aijbaf.38007 ◽

2021 ◽

Vol 3 (8) ◽

pp. 76-103

Author(s):

Ahmad Shakhashiro ◽

Fakarudin Kamarudin ◽

Ida Md. Yasin

Keyword(s):

Technical Efficiency ◽

Central Europe ◽

Economic Freedom ◽

Random Effect ◽

Random Effect Model ◽

Scale Efficiency ◽

Parametric Data ◽

Effect Model ◽

The current study attempts to investigate the impact of the limitation of economic freedom on conventional bank technical efficiency and its components (pure technical efficiency and scale efficiency) by using data from the region of central Europe. Non-parametric Data Envelopment Analysis (DEA) is employed to measure the bank's technical efficiency and its components levels. The applied method of estimation consists of “pooled Ordinary Least Square (OLS), Fixed Effect Model (FEM), Random Effect Model (REM), and the Generalized Method of Moments (GMM)” to investigate the influence of economic freedom and other potential determinants on bank efficiency. This study has found that the indicators of Government Spending, Fiscal Health, Business Freedom, Labor Freedom, and Financial Freedom have positive relationships with bank’s technical efficiency, pure technical efficiency, and scale efficiency. Contrariwise, Overall Economic Freedom, Monetary Freedom, and Investment Freedom exhibit a negative impact on a bank’s technical efficiency and its components. Implications from the study permit the related parties to identify the significant dimensions of economic freedom to the efficiency of the banks to ensure better bank performance.

Circular Economy Innovation and Environmental Sustainability Impact on Economic Growth: An Integrated Model for Sustainable Development

Sustainability ◽

10.3390/su12124831 ◽

2020 ◽

Vol 12 (12) ◽

pp. 4831 ◽

Cited By ~ 9

Author(s):

Eglantina Hysa ◽

Alba Kruja ◽

Naqeeb Ur Rehman ◽

Rafael Laurenti

Keyword(s):

Economic Growth ◽

Sustainable Development ◽

Panel Data ◽

Circular Economy ◽

Panel Data Analysis ◽

Estimation Method ◽

Private Investment ◽

Dynamic Panel Data ◽

Essential Components ◽

This study examines the link between selected indicators of a circular economy, including essential components of environmental and economic growth. Developed economies are continuously innovating to promote growth and giving governmental support to the producers to move from linear economies to circular ones. Hence, waste materials in industrial systems are recycled or re-used, improving the efficiency of using finite resources with the no-waste approach. The aim of this paper is the following: (1) to identify the main components of a circular economy, which are also supportive of sustainability and development; (2) to check the impact of these variables in the economic growth of European Union countries; (3) to find out if the three components of sustainable development adopted to circular economy (CE) indicators (environmental–social–economic) are significant to economic growth. We used a fixed effect panel data analysis to identify the circular economy’s impact on the economic growth of European countries. Additionally, to support the results of the regression analysis, we employed a second method—generalized methods of moments—computing the Arellano–Bond dynamic panel data estimation method. The model included five independent variables, such as environmental tax rate, a recycling rate of waste, private investment and jobs in a circular economy, patents related to recycling, and trade of recyclable raw materials. The identification of each variable was made based on a deep search through literature. The results of both econometric models showed a strong and positive correlation between a circular economy to economic growth, highlighting the crucial role of sustainability, innovation, and investment in no-waste initiatives to promote wealth.

Economic and Non-Economic Variables Affecting Fraud in European Countries

Risks ◽

10.3390/risks9060119 ◽

2021 ◽

Vol 9 (6) ◽

pp. 119

Author(s):

Bashir Ahmad ◽

Maria Ciupac-Ulici ◽

Daniela-Georgeta Beju

Keyword(s):

Panel Data ◽

Political Stability ◽

Fixed Effect Model ◽

Dynamic Panel Data ◽

European Countries ◽

Economic Variables ◽

Cross Sectional ◽

Panel Effects ◽

Fraud is one of the most harmful phenomena, because it leads to collapse of organizations, causes economic downfall of countries, and destroys faith in a country’s capital markets. The impact of fraud is complex and has varying degrees depending on political and financial institutional structures of a country. In this paper, we investigate the combined effect of economic and non-economic variables on fraud using a sample of 41 developed, in transition, and developing European countries. The data cover the period July 2014–December 2020. Panel data techniques of pooled estimation and the dynamic panel data/generalized method of moments (DPD/GMM) is used, keeping in view the endogeneity perspective. Nevertheless, two-way impacts of fixed effect model estimation—cross-sectional and time-based (panel) effects (alternatively)—are used for analyzing the relationship among the given variables, based on Hausman specification test results. Empirical results of panel data extended REM and FEM approaches with country-specific cross-sectional effects showing that political stability, economic freedom, poverty, and GDP significantly affect fraud proliferation. Political stability is appraised to be the most scoring determinant of fraud incidence in a country.

Corporate governance practices and capital structure decisions: the moderating effect of gender diversity

Corporate Governance ◽

10.1108/cg-11-2019-0343 ◽

2020 ◽

Vol 20 (5) ◽

pp. 939-964

Author(s):

Mohammad A.A Zaid ◽

Man Wang ◽

Sara T.F. Abuhijleh ◽

Ayman Issa ◽

Mohammed W.A. Saleh ◽

...

Keyword(s):

Corporate Governance ◽

Panel Data ◽

Capital Structure ◽

Gender Diversity ◽

Business Environment ◽

Board Structure ◽

Content Type ◽

Financing Decisions ◽

Purpose Motivated by the agency theory, this study aims to empirically examine the nexus between board attributes and a firm’s financing decisions of non-financial listed firms in Palestine and how the previous relationship is moderated and shaped by the level of gender diversity. Design/methodology/approach Multiple regression analysis on a panel data was used. Further, we applied three different approaches of static panel data “pooled OLS, fixed effect and random effect.” Fixed-effects estimator was selected as the optimal and most appropriate model. In addition, to control for the potential endogeneity problem and to profoundly analyze the study data, the authors perform the one-step system generalized method of moments (GMM) estimator. Dynamic panel GMM specification was superior in generating robust findings. Findings The findings clearly unveil that all explanatory variables in the study model have a significant influence on the firm’s financing decisions. Moreover, the results report that the impact of board size and board independence are more positive under conditions of a high level of gender diversity, whereas the influence of CEO duality on the firm’s leverage level turned from negative to positive. In a nutshell, gender diversity moderates the effect of board structure on a firm’s financing decisions. Research limitations/implications This study was restricted to one institutional context (Palestine); therefore, the results reflect the attributes of the Palestinian business environment. In this vein, it is possible to generate different findings in other countries, particularly in developed markets. Practical implications The findings of this study can draw responsible parties and policymakers’ attention in developing countries to introduce and contextualize new mechanisms that can lead to better monitoring process and help firms in attracting better resources and establishing an optimal capital structure. For instance, entities should mandate a minimum quota for the proportion of women incorporation in boardrooms. Originality/value This study provides empirical evidence on the moderating role of gender diversity on the effect of board structure on firm’s financing decisions, something that was predominantly neglected by the earlier studies and has not yet examined by ancestors. Thereby, to protrude nuanced understanding of this novel and unprecedented idea, this study thoroughly bridges this research gap and contributes practically and theoretically to the existing corporate governance–capital structure literature.

Tolerance, Cultural Diversity and Economic Growth: Evidence from Dynamic Panel Data Analysis

Economies ◽

10.3390/economies9010020 ◽

2021 ◽

Vol 9 (1) ◽

pp. 20

Author(s):

Osama Alhendi ◽

József Tóth ◽

Péter Lengyel ◽

Péter Balogh

Keyword(s):

Panel Data ◽

Cultural Diversity ◽

English Language ◽

Panel Data Analysis ◽

Dynamic Panel Data ◽

Policy Implications ◽

Social Tolerance ◽

Solow Model ◽

Related Equation ◽

This study aims to examine the impact of social tolerance of cultural diversity, and the ability to speak widely spoken languages, on economic performance. Based on the literature, the evidence is still controversial and unclear. Therefore, the study used panel data relating to (99) non-English speaking economies during the time period between 2009 and 2017. Following the augmented Solow model approach, the related equation was expanded, in this study, to include (besides human capital) social tolerance, the English language (as a lingua franca) and the level of openness. The model was estimated using the two-step system GMM approach. The results show that social tolerance of diversity and English language competence have a positive, but insignificant impact on the economy. Regarding policy implications, government and decision-makers can avoid the costs deriving from cultural diversity by adopting democratic and effective institutions that aim to achieve cultural justice and recognition, which, in turn, enhance the level of tolerance, innovation and productivity in the economy. Moreover, to ease intercultural communication within heterogeneous communities, it is necessary to invest in enhancing the quality of second language education which is necessary to make society more tolerant and the country more open to the global economy.

The impact of globalization on the performance of Banks in South Africa

Review of International Business and Strategy ◽

10.1108/ribs-02-2016-0003 ◽

2016 ◽

Vol 26 (4) ◽

pp. 517-542 ◽

Cited By ~ 3

Author(s):

Fadzlan Sufian ◽

Fakarudin Kamarudin

Keyword(s):

South Africa ◽

Host Country ◽

Banking Sector ◽

Estimation Method ◽

Bank Performance ◽

Content Type ◽

Multinational Banks ◽

Dynamic Panel Regression ◽

Purpose This paper aims to provide empirical evidence for the impact globalization has had on the performance of the banking sector in South Africa. In addition, this study also investigates bank-specific characteristics and macroeconomic conditions that may influence the performance of the banking sector. Design/methodology/approach The authors use data collected for all commercial banks in South Africa between 1998 and 2012. The ratio of return on assets was used to measure bank performance. They then used the dynamic panel regression with the generalized method of moments as an estimation method to investigate the potential determinants and the impact of globalization on bank performance. Findings Positive impact of greater economic integration and trade movements of the host country, while greater social globalization in the host country tends to exert negative influence on bank profitability. The results show that banks originating from the relatively more economically globalized countries tend to perform better, while banks headquartered in countries with greater social and political globalizations tend to exhibit lower profitability levels. Originality/value An empirical model was developed that allows for the performance of multinational banks to depend on internal and external factors. Moreover, unlike the previous studies on bank performance, in this empirical analysis, we control for the different dimensions of globalizations while taking into account the origins of the multinational banks. The procedure allows us to test for the home field, the liability of foreignness and global advantage hypotheses to deduce further insights into the prospects of banking across borders.

The influence of board social capital on corporate social responsibility reporting

Journal of Intellectual Capital ◽

10.1108/jic-11-2020-0359 ◽

2021 ◽

Vol ahead-of-print (ahead-of-print) ◽

Author(s):

Nuria Reguera-Alvarado ◽

Francisco Bravo-Urquiza

Keyword(s):

Social Capital ◽

Resource Dependence ◽

Gender Diversity ◽

Dynamic Panel Data ◽

Content Type ◽

Csr Reporting ◽

Multiple Directorships ◽

The Impact ◽

Board Social Capital

PurposeThe main objective of this paper is to analyze the influence of multiple directorships, as a critical component of board social capital, on CSR reporting. This study also explores the moderating effect of certain board attributes on multiple directorships.Design/methodology/approachThe authors’ sample is composed of Spanish listed firms in the Madrid Stock Exchange for the period 2011–2017. A dynamic panel data model based on the Generalized Method of Moments (GMMs) is employed.FindingsRelying on a resource dependence view, the authors’ results highlight an ambiguously positive association between multiple directorships and the level of CSR reporting. In particular, this relationship is positively moderated by both board size and gender diversity.Research limitations/implicationsThese findings contribute to academic debates concerning the value of board members intellectual capital. In particular, the authors emphasize the importance of board social capital, as well as the need to consider the context in which directors make decisions.Practical implicationsThis evidence may prove helpful to firms when configuring the board of directors, and for regulators and professionals when refining their legislations and recommendations.Originality/valueTo the best of the authors' knowledge, this is the first study that empirically analyzes the impact of an important element of board social capital, such as multiple directorships, on CSR reporting, which has become crucial in financial markets.