Impact of the government size on economic growth in the Western Balkan countries

The Keynesian theory states that economic growth is positively affected by government spending, while Classical theory states that economic growth is negatively affected by government spending, as is stated by neoclassical public choice theorists (Nyasha & Odhiambo, 2019). Based on these theories, many authors have carried out research on the impact of economic freedom on economic growth by analyzing various empirical cases. Bergh and Karlsson (2010) with the findings from his paper confirmed that the countries with the highest government size have an elevated growth in the globalization index of KOF and the Fraser Institute’s economic freedom index. The main aim of this paper is to analyze the government size impact on the growth of the economy in the Western Balkan in the time period 2000–2017 according to Fraser Institute’s data, incorporating the following econometric models: fixed and random effects, pooled ordinary least squares (OLS), and Hausman-Taylor IV. With these models, this paper analyzes a government size and its components: government enterprises and investment, government consumption, transfers, and subsidies. The results illustrate a relationship between the size of the government and the growth of the economy in the Western Balkans that is positive. 1% increase in government size affects 0.29% gross domestic product (GDP) growth per capita. According to the Hausman-Taylor instrumental variable, 1% growth of government consumption is affected by 0.69% the decline in GDP per capita. The growth rate of transfers and subsidies affects 0.17% of GDP growth per capita and 1% of government enterprises and investment affects 0.54% GDP growth per capita.

An Analysis of the Influencing Factors in the Establishment of the Overseas Agricultural Cooperation Zones under the Belt and Road Initiative Based on Logit Model

A total of 57 overseas agricultural cooperation zones have been selected from 68 countries along the Belt and Road and extended areas from 2006 to 2018 as samples, and the corresponding indexes of bilateral trade in agricultural products, agricultural resource endowments, labor resources, infrastructure, and economic freedom have been chosen for parameter estimation based on the maximum likelihood method under the Logit model for an empirical analysis of the main influencing factors in the establishment of the overseas agricultural cooperation zones. The empirical analysis results indicate that the total import and export trade volume of agricultural products, agricultural land area, and labor resources of the host country have a significant promoting effect on the establishment of overseas agricultural cooperation zones. The economic freedom index has a significant negative impact on the establishment of overseas agricultural cooperation zones, while the port throughput has no significant impact. China should consider several main factors when selecting a host country to establish overseas agricultural cooperation zones, including bilateral trade volume of agricultural products, agricultural resource endowments, labor resources, and economic freedom of the host country, which can provide reference for the spatial layout of the overseas agricultural cooperation zones.

Financial inclusion and digital banking on an emergent economy

PurposeTo analyze financial inclusion through digital banking in order to identify how digital banking is including or excluding different types of populations in an emergent economy.Design/methodology/approachChi-square statistical tests were conducted to test the relationship between demographic variables (i.e. gender, region, locality and age) with having a digital banking account, types of services and reasons for not using them. As an example of an emergent economy, the Mexican Financial Inclusion Survey database was used, which includes stratified and clustered sampling.FindingsHaving a bank account with digital banking is related to gender. Women are more excluded than men, demonstrating a gender gap in access to digital banking accounts. Moreover, having a bank account with digital banking depends on the region. In regions where digital banking is more developed, the population uses a wide variety of digital banking services, in contrast to less developed regions. About the size of the locality, the lack of financial inclusion via digital banking is more common in rural contexts or small cities, demonstrating the exclusion of this type of population.Research limitations/implicationsThis study is conducted with data from the latest Mexican Financial Inclusion Survey. Since the National Institute of Statistics and Geography (NISG) in Mexico previously conducted the study for exploratory purposes, it was not possible for the researchers to modify the variables.Practical implicationsThe results might be considered on similar emergent economies to promote financial inclusion of vulnerable groups such as women, people living in underdeveloped regions, rural areas, small cities and elders. These findings may provide criteria for both government agencies and banking institutions to make efforts focused on including these population groups that have not been financially included through digital banking.Originality/valueIdentifying the barriers that affect financial inclusion, such as gender, region, size of the city and age can help to guide efforts to achieve greater economic freedom and quality of life for diverse types of populations. Although the study is carried out in an emerging economy, the results can also shed light on how to address these forms of exclusion that occur in different types of economies. It is understood that the lack of financial inclusion is a limitation to the economic freedom and quality of life to which everyone should have access, hence the relevance of the article.

Economic Freedom: The Top, the Bottom, and the Reality. I. 1997–2007

We recall the historically admitted prerequisites of Economic Freedom (EF). We have examined 908 data points for the Economic Freedom of the World (EFW) index and 1884 points for the Index of Economic Freedom (IEF); the studied periods are 2000–2006 and 1997–2007, respectively, thereby following the Berlin wall collapse, and including 11 September 2001. After discussing EFW index and IEF, in order to compare the indices, one needs to study their overlap in time and space. That leaves 138 countries to be examined over a period extending from 2000 to 2006, thus 2 sets of 862 data points. The data analysis pertains to the rank-size law technique. It is examined whether the distributions obey an exponential or a power law. A correlation with the country’s Gross Domestic Product (GDP), an admittedly major determinant of EF, follows, distinguishing regional aspects, i.e., defining 6 continents. Semi-log plots show that the EFW-rank relationship is exponential for countries of high rank (≥20); overall the log–log plots point to a behaviour close to a power law. In contrast, for the IEF, the overall ranking has an exponential behaviour; but the log–log plots point to the existence of a transitional point between two different power laws, i.e., near rank 10. Moreover, log–log plots of the EFW index relationship to country GDP are characterised by a power law, with a rather stable exponent (γ≃0.674) as a function of time. In contrast, log–log plots of the IEF relationship with the country’s gross domestic product point to a downward evolutive power law as a function of time. Markedly the two studied indices provide different aspects of EF.

Religious, Civil, and Economic Freedoms: What’s the Chicken and What’s the Egg?

This paper studies the relationship between religious liberty and economic freedom. First, three new facts emerge: (a) religious liberty has increased since 1960, but has slipped substantially over the past decade; (b) the countries that experienced the largest declines in religious liberty tend to have greater economic freedom, especially property rights; (c) changes in religious liberty are associated with changes in the allocation of time to religious activities. Second, using a combination of vector autoregressions and dynamic panel methods, improvements in religious liberty tend to precede economic freedom. Finally, increases in religious liberty have a wide array of spillovers that are important determinants of economic freedom and explain the direction of causality. Countries cannot have long-run economic prosperity and freedom without actively allowing for and promoting religious liberty.

Ideological Preferences of Kaliningrad Residents in the Socio-Political System

The article analyzes the ideological preferences of the residents of the Kaliningrad region through the prism of their socio-economic situation and political behavior. The study is based on the data of a formalized interview (N = 977) according to the age and sex sample, representing the population of four geodemographic districts of the Kaliningrad region. Based on the Nolan Chart, the study determines ideological types according to the respondents attitude to political and economic freedom. The statistical analysis of the data revealed a high degree of pluralism among the residents of the region on the issues under consideration. At the same time, it showcased the prevailing ideas of state regulation of the economy and values of personal freedom. Analyzing the socio-economic situation of the respondents and their inherent ideological attitudes, the author found that the values of economic freedom are more often shared by young people, middle-aged people, residents living in Kaliningrad, with higher income. Ideas of state regulation of the economy prevail among people of retirement and pre-retirement age, residents of the semi-periphery of the Kaliningrad region, with lower income. The study also revealed the relationship between the ideological attitudes of people in the region and their political behavior. In particular, it found that people who share the values of political and economic freedom are ready to take the most active part in protests. At the same time, the study did not identify any significant links between the ideological type of the respondents and their electoral behavior.

Political and Civic Identity of Libertarians in Contemporary Russia: Problems and Perspectives

Libertarianism is a new ideological trend, popular among young people. We try to find out whether libertarianism rises as independent political movement or it is the reaction on the fall of popularity of traditional political parties. For that purpose, the author made the comparative analysis of the program documents of the Libertarian Party of Russia with the classical works of the American libertarians and analyzed the published interview both of the party leaders/activists and of the experts. The author used the interview which he took from some activists in order to clarify the political identification of the Russian libertarians. The political identity of libertarians is characterized by the broadest possible interpretation of personal and economic freedom. Libertarians believe that such freedom is compatible with law and legality and is opposite to anarchy. At the same time, they avoid definitions and norms that could constrain freedom by both the state and the adherents of certain, including liberal, values and slogans. This broad approach makes it difficult to politically identify libertarians, but contributes to their attractiveness among young people.