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   ISSN (Online) 2227-7099
   Published by MDPI Homepage  [148 journals]
  • Economies, Vol. 5, Pages 1: Financial Reforms and Determinants of FDI:
           Evidence from Landlocked Countries in Sub-Saharan Africa

    • Authors: Husam Rjoub, Mehmet Aga, Ahmad Abu Alrub, Murad Bein
      First page: 1
      Abstract: The recognition of Foreign Direct Investment (FDI) as a source of funding to foster economic development in both developed and developing countries has been in ascendancy. The prime purpose of this study is to empirically investigate the determinants of FDI for the “landlocked countries” in Sub-Saharan Africa over the period 1995–2013. By employing panel data analysis, the result of the study revealed that domestic investment, trade (openness), human capital, political constraint, natural resource endowment and the market size (with the GDP growth as proxy) as having positive impact on determining FDI flow into the sample countries with only the countries’ tax policies seen otherwise. Our study not only contributes to existing literature on FDI determinants by investigating landlocked countries of Sub-Saharan Africa (SSA) for the first time but also includes natural resources that the landlocked countries are endowed with, tax policies and political constraints in such countries for the stipulated period.
      PubDate: 2017-01-01
      DOI: 10.3390/economies5010001
      Issue No: Vol. 5, No. 1 (2017)
  • Economies, Vol. 5, Pages 2: Acknowledgement to Reviewers of Economies in

    • Authors: Economies Editorial Office
      First page: 2
      Abstract: The editors of Economies would like to express their sincere gratitude to the following reviewers for assessing manuscripts in 2016.[...]
      PubDate: 2017-01-13
      DOI: 10.3390/economies5010002
      Issue No: Vol. 5, No. 1 (2017)
  • Economies, Vol. 5, Pages 3: Leaning against the Wind Policies on
           Vietnam’s Economy with DSGE Model

    • Authors: Phuc Huynh, Trang Nguyen, Thanh Duong, Duc Pham
      First page: 3
      Abstract: The global financial crisis of 2007–2008 had a negative impact on many countries, including Vietnam. Many policies have been applied to stabilize the macro-economic indicators. However, most of them are based on old qualitative models, which do not help policy makers understand deeply how each one affects the economy. In this paper, we investigate a quantitative macro-economic approach and use leaning against the wind policies with the Dynamic Stochastic General Equilibrium model (DSGE) to find a better way to understand how policies stabilize the Vietnamese economy. Based on the framework of Gerali et al., we calibrate the hyper-parameter for Vietnam financial data and do the comparison between the standard Taylor rule and the cases in which we add asset price and credit elements. The results show that the credit-augmented Taylor rule is better than the asset-price-augmented one under the technology shock and contrary to the cost-push shock. Moreover, the extended simulation result shows that combining both asset-price and credit rules on the model is not useful for Vietnam’s economy in both types of shock.
      PubDate: 2017-01-18
      DOI: 10.3390/economies5010003
      Issue No: Vol. 5, No. 1 (2017)
  • Economies, Vol. 5, Pages 4: Financial Deepening and Economic Growth Nexus
           in Nigeria: Supply-Leading or Demand-Following?

    • Authors: Tari Karimo, Oliver Ogbonna
      First page: 4
      Abstract: This paper examined the direction of causality between financial deepening and economic growth in Nigeria for the period 1970–2013. The study adopted the Toda–Yamamoto augmented Granger causality test and results showed that the growth-financial deepening nexus in Nigeria follows the supply-leading hypothesis. This means that it is financial deepening that leads to growth and not growth leading financial deepening. Among other things, the study recommended that policy efforts should be geared towards removing obstacles that undermine the growth of credit to the private sector, and must restore investors’ confidence in the stock market operations.
      PubDate: 2017-01-23
      DOI: 10.3390/economies5010004
      Issue No: Vol. 5, No. 1 (2017)
  • Economies, Vol. 5, Pages 5: The Impact of Terrorist Attacks on Foreign
           Exchange Rate: Case Study of Turkish Lira versus Pound Sterling

    • Authors: Mansoor Maitah, Jehar Mustofa, Gok Ugur
      First page: 5
      Abstract: In this study, the impact of terrorist attacks on exchange rate is estimated. Particularly, the study focuses on terrorist attacks in Turkey and its implication on Turkish lira versus pound sterling exchange rate. In order to find the causal effect, the study employed Autoregressive distributive lag (ARDL) bound testing approach as an estimation technique. Accordingly, the analysis reveals that a terrorist attack has a negative impact on the exchange rate in both the short-run and long-run. However, the negative effect of terrorism tends to be small in both the short-run and long-run. More precisely, terrorist attacks depreciate the exchange rate between Turkish lira and pound sterling by approximately 0.024% in the next trading day. The long-term effect also shows that a terrorist attack depreciates the exchange rate on average by 0.0706%.
      PubDate: 2017-01-28
      DOI: 10.3390/economies5010005
      Issue No: Vol. 5, No. 1 (2017)
  • Economies, Vol. 5, Pages 6: Examining the ‘’Natural Resource
           Curse’’ and the Impact of Various Forms of Capital in Small Tourism
           and Natural Resource-Dependent Economies

    • Authors: Petar Kurecic, Filip Kokotovic
      First page: 6
      Abstract: The problem of the relevance of human and natural capital, as well as the potential adverse effect of natural capital on economic growth, has gained increased attention in development economics. The aim of this paper is to assess, theoretically and empirically, the relevance of several forms of capital on economic growth in certain small economies that are dependent upon tourism or natural resources. The empirical framework is based on Impulse Response Functions obtained from Vector Autoregressive models in which we focus on the model where economic growth is the dependent variable for ten small economies that are dependent upon either tourism or natural resources. We find that there is evidence of the “natural resource curse”, especially in the economies that have a strong dependence on resources that are easily substitutable and whose prices constantly fluctuate. We further find that in the majority of observed cases, the type of capital these small economies are most dependent on for their economic growth causes negative impulses in the majority of the observed periods. Therefore, the main policy recommendation should be to assure that even these small economies should strive towards further diversification and avoid dependence on only one segment of their economy.
      PubDate: 2017-02-14
      DOI: 10.3390/economies5010006
      Issue No: Vol. 5, No. 1 (2017)
  • Economies, Vol. 4, Pages 20: The Effects of Oil Price Shocks on IIP and
           CPI in Emerging Countries

    • Authors: Yukino Sakashita, Yasunori Yoshizaki
      First page: 20
      Abstract: In this paper, we investigate the effects of oil price shocks on the production and price level in five emerging countries through comparison with the United States, using a two-block structural VAR model of the global crude oil market proposed by Kilian and Park (see International Economic, vol. 50, 2009, pp. 1267–1287). Our main finding is that the effect of oil price shocks on the index of the industrial production (IIP) and consumer price index (CPI) in emerging countries also depends on where the changes fundamentally come from (this is also the case for the United States). We also found that some emerging countries showed unique impulse response patterns, the shapes of which are different from those of the United States and there are differences in impulse response patterns among emerging countries.
      PubDate: 2016-09-29
      DOI: 10.3390/economies4040020
      Issue No: Vol. 4, No. 4 (2016)
  • Economies, Vol. 4, Pages 21: Breaking up Is Hard to Do: Why the Eurozone
           Will Survive

    • Authors: Kevin Aslett, James Caporaso
      First page: 21
      Abstract: Since revelations of the Greek fiscal deficit in the fall of 2009, the breakup of the Economic and Monetary Union (EMU) has moved from unthinkable to plausible. The debate over the future  of the EMU has become increasingly relevant, as numerous efforts to solve the Greek crisis have not  been successful. Neither have basic competitiveness differences between countries in the core and  periphery of the European Union been eliminated. Proposed solutions include development of a  banking union, regulatory measures to monitor trade and capital imbalances, fiscal reforms on the  part of countries in trouble, and centralized fiscal capacity on the part of the EMU itself to offset the liabilities of the indebted states. While the crisis seems to be contained, it is by no means solved.  This leads to the question: “Will the euro survive?” We answer this question in the affirmative, but  in doing so we argue that continuation of the EMU is different from the question of whether the  EMU should have been created in the first place. Some reasons for continuation of the EMU were  present at its creation; others have developed in a path‐dependent way as the Eurozone has evolved.
      PubDate: 2016-10-03
      DOI: 10.3390/economies4040021
      Issue No: Vol. 4, No. 4 (2016)
  • Economies, Vol. 4, Pages 22: Technical Efficiency and Its Determinants of
           Rice Production in Cambodia

    • Authors: Sokvibol Kea, Hua Li, Linvolak Pich
      First page: 22
      Abstract: The present study aims to measure the technical efficiency and establish core factors affecting rice production in Cambodia. A four‐year dataset generated from the central government document “Profile on Economics and Social” of 25 entire provinces between 2012 and 2015 and the stochastic production frontier model (SFA) was applied. The results indicated that the level of output (quantity) of Cambodian rice production varied according to the different level of capital investment in agricultural machineries, total rice actual harvested area, and technical fertilizer application within provinces. Furthermore, evidence revealed that the overall mean efficiency of rice production is 78.4%, which implies that there is still room to further improve technical efficiency given the same level of inputs and technology. More importantly, the findings revealed that irrigation, production techniques and amount of agricultural supporting staff are the most important influencing factors of rice production’s technical efficiency in Cambodia. In conclusion, the present study strongly recommends the development of irrigation systems and good water management practices to be considered and bring about more effective actions by the central government as well as related agencies for improving rice production in Cambodia in addition to capital investment and improving technical skills of supporting staff and rural farmers.
      PubDate: 2016-10-03
      DOI: 10.3390/economies4040022
      Issue No: Vol. 4, No. 4 (2016)
  • Economies, Vol. 4, Pages 23: The Impact of Possible Migration Scenarios
           after ‘Brexit’ on the State Pension System

    • Authors: Angus Armstrong, Justin van de Ven
      First page: 23
      Abstract: The purpose of this paper is to explore the impacts of changes in migration flows—in particular, those resulting from possible migration policy changes after a UK exit (‘Brexit’) from the European Union (EU)—on the finances of the UK state pension system. We find that the aggregate effects of considered shocks to immigration associated with Brexit on the funding of UK state pensions are dwarfed by associated uncertainties, and by coincident cost increases due to population aging and (domestic) pension’s policy.
      PubDate: 2016-10-25
      DOI: 10.3390/economies4040023
      Issue No: Vol. 4, No. 4 (2016)
  • Economies, Vol. 4, Pages 24: Have Sanctions Modified Iran’s Trade
           Policy? An Evidence of Asianization and De-Europeanization through the
           Gravity Model

    • Authors: Liudmila Popova, Ehsan Rasoulinezhad
      First page: 24
      Abstract: This study is an empirical attempt to find out whether under sanctions Iran’s trade direction has shifted away from Europe (trade policy of de-Europeanization) towards Asia (trade policy of Asianization). The analysis is conducted using a panel-gravity trade model to analyze bilateral trade pattern between Iran and 50 countries from the EU and Asia during the period 2006–2013. To this end, the authors use an extended gravity model by adding new variables, including the index of Chinn–Ito (KAOPEN) as an indicator of financial openness, and the composite trade intensity (CTI) as an indicator of trade openness. Our findings reveal that the gravity equation fits the data reasonably well. The empirical evidence indicates a significant negative effect of sanctions on Iran–EU bilateral trade (by an average of 46.9%), while it has a positive impact on trade between Iran and the Asian countries (by an average of 85.2%). Overall, these findings confirm that the imposition of various sanctions related to Iran’s nuclear program has pushed the country’s foreign trade to reorient away from Europe towards Asia.
      PubDate: 2016-10-28
      DOI: 10.3390/economies4040024
      Issue No: Vol. 4, No. 4 (2016)
  • Economies, Vol. 4, Pages 25: Stock Market and Sustainable Economic Growth
           in Nigeria

    • Authors: Erasmus Owusu
      First page: 25
      Abstract: This paper examines the relationship between stock market evolution and sustainable economic growth in Nigeria. The study employs Auto-Regressive Distributed Lag (ARDL)-bounds testing approach and a combined stock market indicators index to examine the relationship. The paper finds that, in the long run, stock markets have no positive and at best mixed effect on economic growth in Nigeria. This finding supports the numerous past studies, which have reported negative/mixed or inconclusive results on the effects of stock markets on economic growth. The paper, therefore, concludes that, there is the need for increasing financial deepening and the removal of bottlenecks in the financial sectors of the economy by providing further public and institutional education on the value of stock markets for economic development.
      PubDate: 2016-11-04
      DOI: 10.3390/economies4040025
      Issue No: Vol. 4, No. 4 (2016)
  • Economies, Vol. 4, Pages 26: The Impact of Financial Development on
           Economic Growth in Nigeria: An ARDL Analysis

    • Authors: Eugene Iheanacho
      First page: 26
      Abstract: This study empirically examines the relationship between financial intermediary development and economic growth in Nigeria over the period 1981–2011 using the auto-regressive distributed lag (ARDL) approach to co-integration analysis. The results show that the relationship between financial development and economic growth in Nigeria is not significantly different from what has been observed generally in oil-dependent economies. The relationship between financial intermediary development and economic growth in Nigeria is found to be insignificantly negative in the long-run and significantly negative in the short-run. The results highlight the dominant role of the oil sector in economic activities in Nigeria.
      PubDate: 2016-11-07
      DOI: 10.3390/economies4040026
      Issue No: Vol. 4, No. 4 (2016)
  • Economies, Vol. 4, Pages 27: Does Financial Development Drive Private
           Investment in Ghana?

    • Authors: Daniel Sakyi, Micheal Kofi Boachie, Mustapha Immurana
      First page: 27
      Abstract: There is ample evidence from economic growth literature that investment accelerates economic growth and development of developing countries, of which Ghana is not an exception. Based on this, recent growth and development policies in Ghana have focused more on encouraging private sector investment through the development of the financial sector. This paper investigates the short- and long-run impact of financial development on private investment in Ghana for the years 1970–2014. Additionally, to find out whether the measurement of financial development matters for private investment, several indicators of financial development are used. The results, based on the ARDL bounds testing approach to cointegration, suggest that financial development has not been a key driver of private investment in the long run, while, in the short run, the effect of financial development on private investment depends on how financial development is measured. Given these results, policy makers should be circumspect regarding the choice of financial development indicator used as a policy instrument in the design and implementation of private investment policies for Ghana.
      PubDate: 2016-12-01
      DOI: 10.3390/economies4040027
      Issue No: Vol. 4, No. 4 (2016)
  • Economies, Vol. 4, Pages 28: Remittances, Development Level, and Long-Run
           Economic Growth

    • Authors: Kristina Matuzeviciute, Mindaugas Butkus
      First page: 28
      Abstract: This paper seeks to enrich the field of research on the topic of the impact of remittances on long-run economic growth. Using an unbalanced panel data covering a sample of 116 countries with different development levels over the period 1990–2014, we studied the interaction between remittances and the level of economic development, as well as its impact on long-run economic growth—because the impact of remittances could be influenced by the development level of the receiving countries. In parallel, we explored the hypothesis about diminishing a country’s capacity to use remittances for promoting long-run economic growth as the abundance of remittances increases. To control the endogeneity while estimating the impact of remittances on long-run economic growth, we used OLS (ordinary least squares) with FD (first differences) transformation and FE (fixed effects) approaches and other controls of long-run growth. Our results showed that in general remittances have a positive impact on long-run economic growth, but the impact differs based on the country’s economic development level and the abundance of remittances in the economy.
      PubDate: 2016-12-01
      DOI: 10.3390/economies4040028
      Issue No: Vol. 4, No. 4 (2016)
  • Economies, Vol. 4, Pages 12: Real Effective Exchange Rate of Rouble and
           Competitiveness of Russian Agrarian Producers

    • Authors: Mansoor Maitah, Elena Kuzmenko, Lubos Smutka
      First page: 12
      Abstract: A number of development projects were launched in Russia to support agro-producers, emphasizing increasing potential and perspective significance of Agrarian sector in the Russian economy. In light of this, it becomes interesting to investigate the position of agro-producers both in comparison to producers from other domestic sectors and relatively to its main foreign competitors. An analysis of the recent dynamics (from 2000 to 2014) of the real effective exchange rate of Russian rouble serves in the present study as an indicator of price competitiveness, which determines relative position of domestic producers in external markets. The actual competitive state of Russian agro-producers is analyzed by the means of revealed comparative advantage indices proposed by Balassa, Vollrath and Lafay. The calculations have shown that the entire analyzed period can be generally characterized as the period of significant real appreciation of the Russian rouble and the reason behind this is the difference in inflation rates in Russia and its main foreign trade partners. This predetermined the relatively low price competitiveness of agro-producers, which was mostly confirmed by calculated values of Balassa Revealed Comparative Advantage (RCA) index, Vollrath Revealed Competitiveness index (VRC) and Lafay Trade Specialization index (LFI). The short-term real depreciations of the rouble did not have any expected substantially positive impacts on their competitive position.
      PubDate: 2016-06-27
      DOI: 10.3390/economies4030012
      Issue No: Vol. 4, No. 3 (2016)
  • Economies, Vol. 4, Pages 13: The Growth Path of Agricultural Labor
           Productivity in China: A Latent Growth Curve Model at the Prefectural

    • Authors: Peng Bin, Marco Vassallo
      First page: 13
      Abstract: Given the shrinking proportion of agriculture output and the growing mobility of the labor force in China, how agricultural labor productivity develops has become an increasingly attractive topic for researchers and policy makers. This study aims to depict the development trajectory of agricultural labor productivity in China after its WTO entry. Based on a balanced panel data containing 287 Chinese prefectures from 2000 to 2013, this study applies the Latent Growth Curve Model (LGCM) and finds that the agricultural labor productivity follows a piecewise growth path with two breaking points in the years of 2004 and 2009. This may stem from some exogenous stimulus, such as supporting policies launched in the breaking years. Further statistical analysis shows an expanding gap of agricultural labor productivity among different Chinese prefectures.
      PubDate: 2016-06-30
      DOI: 10.3390/economies4030013
      Issue No: Vol. 4, No. 3 (2016)
  • Economies, Vol. 4, Pages 14: Influence Determination of Social
           Responsibility to the Productivity Enterprise Activity Level

    • Authors: Sergii Kavun, Ganna Zhosan
      First page: 14
      Abstract: The purpose of this paper is to develop a scientific and methodical approach for determination of the comprehensive social responsibility indicator in this paper based on estimation of influence degree for the economical, ecological, social and labour, standard and legal components. There is allowance for determining of some level of enterprise social responsibility. In addition, there is a basis for development some ways of their increasing. The essence of the used approach is clotting of the individual indicators set to four intermediate indicators of the economic, ecological, social and labor, standard and legal components, which can be boiled down to the generalizing activity productivity indicator based on the matrix and range approach. An economical and mathematical model of the social responsibility influence level to the enterprise activity productivity level, which is based on enterprise propose harmonization with the participants’ interests, was being built. The paper proposes the mathematical model, which allows detecting a necessary time period for enterprise activity productivity ensuring due to social responsibility implementation.
      PubDate: 2016-07-19
      DOI: 10.3390/economies4030014
      Issue No: Vol. 4, No. 3 (2016)
  • Economies, Vol. 4, Pages 15: The Formation of Immigrant Networks in the
           Short and the Long Run

    • Authors: Gil Epstein, Odelia Heizler-Cohen
      First page: 15
      Abstract: In this paper, we present a formal framework of possible network formations among immigrants. After arriving in the new country, one of the new immigrant’s important decisions is with whom to maintain a link in the foreign country. We find that the behavior of the first two immigrants affects all those who come after them. We also find that in the long run, under specific conditions, the first immigrant will become the leader of the immigrant society. Over time, as the stock of immigrants in the host country increases, the investment in the link with the leader will increase as well.
      PubDate: 2016-07-30
      DOI: 10.3390/economies4030015
      Issue No: Vol. 4, No. 3 (2016)
  • Economies, Vol. 4, Pages 16: Convergence and Heterogeneity in Euro Based
           Economies: Stability and Dynamics

    • Authors: Philip Haynes, Jonathan Haynes
      First page: 16
      Abstract: Cluster analysis is used to explore the performance of key macroeconomic variables in European countries that share the euro, from the inception of the currency in 2002 through to 2013. An original applied statistical approach searches for a pattern synthesis across a matrix of macroeconomic data to examine if there is evidence for country clusters and whether there is convergence of the cluster patterns over time. A number of different clusters appear and these change over time as the economies of the member states dynamically interact. This includes some new countries joining the currency during the period of examination. As found in previous research, Southern European countries tend to remain separate from other countries. The new methods used, however, add to an understanding of some differences between Southern European countries, in addition to replicating their broad similarities. Hypotheses are formed about the country clusters existing in 2002, 2006 and 2013, at key points in time of the euro integration process. These hypotheses are tested using the rigour of a bivariate analysis and the multivariate method of Qualitative Comparative Analysis (QCA). The results confirm the hypotheses of cluster memberships in all three periods. The confirmation analysis provides evidence about which variables are most influencing cluster memberships at each time point. In 2002 and 2006, differences between countries are influenced by their different Harmonised Index of Consumer Prices (HICP) and labour productivity scores. In 2013, after the crisis, there is a noticeable change. Long term interest rates and gross government debt become key determinants of differences, in addition to the continuing influence of labour productivity. The paper concludes that in the last decade the convergence of countries sharing the euro has been limited, by the joining of new countries and the circumstances of the global economic crisis. The financial crisis has driven divergences from pre-existing integration. Country convergence needs to be understood as a dynamic and multivariate concept. This is a significant development of convergence theory and is an addition to how the concept has been understood previously.
      PubDate: 2016-08-16
      DOI: 10.3390/economies4030016
      Issue No: Vol. 4, No. 3 (2016)
  • Economies, Vol. 4, Pages 17: Why Migrate: For Study or for Work?

    • Authors: Elise Brezis
      First page: 17
      Abstract: Over the past decades, globalization has led to a huge increase in the migration of workers, as well as students. This paper develops a simple two-step model that describes the decisions of an individual vis-à-vis education and migration, and presents a unified model, wherein the two migration decisions are combined into a single, unique model. This paper shows that under the plausible assumption that costs of migration differ over the human life cycle, the usual brain drain strategy is sub-optimal. With an increase in globalization, the brain drain strategy will be replaced by the strategy of migration of students.
      PubDate: 2016-08-17
      DOI: 10.3390/economies4030017
      Issue No: Vol. 4, No. 3 (2016)
  • Economies, Vol. 4, Pages 18: Going Forward from B to A? Proposals for
           the Eurozone Crisis

    • Authors: Massimo Amato, Luca Fantacci, Dimitri Papadimitriou, Gennaro Zezza
      First page: 18
      Abstract: After reviewing the main determinants of the current Eurozone crisis, this paper discusses the feasibility of introducing fiscal currencies as a way to restore fiscal space in peripheral countries, such as Greece, which have so far adopted austerity measures in order to abide by their commitments with Eurozone institutions and the IMF. We show that the introduction of fiscal currencies would speed up the recovery, without violating the rules of Eurozone Treaties. At the same time, these processes could help the transition of the euro from its current status of single currency to a status of “common clearing currency” along the lines proposed by Keynes at Bretton Woods as a system of international settlements. Eurozone countries could therefore move from “Plan B” aimed at addressing member state domestic problems, to a “Plan A” of a better European monetary system.
      PubDate: 2016-08-24
      DOI: 10.3390/economies4030018
      Issue No: Vol. 4, No. 3 (2016)
  • Economies, Vol. 4, Pages 19: Socio-Economic Implications of Drought in the
           Agricultural Sector and the State Economy

    • Authors: Jadwiga Ziolkowska
      First page: 19
      Abstract: In 2011, the most severe drought in Texas history caused $7.62 billion in losses in the agricultural sector alone. This paper analyzes ripple effects of the 2011 drought in Texas agriculture on the entire state economy retrospectively in an effort to foster discussion on targeted mitigation measures in the long term. By using an Input-Output and social accounting matrix model, direct effects on livestock, cotton, sorghum, wheat, corn, hay, and timber production, as well as indirect effects on other related sectors, and finally induced effects from changing consumers behavior have been estimated. According to the results, the 2011 drought caused economic losses of $16.9 billion in the entire Texas economy and increased the unemployment by around 166,895 people. The agricultural sector alone lost around 106,000 jobs. The cotton farming experienced 91% of revenue losses (as compared to 2010), while the livestock production lost 32% in revenue. The decreased production yields and limited market supply directly influence market prices for those products, which might create additional spillover effects on export and import quantities. The presented analysis can be helpful for designing policies to launch mitigation programs for drought events in the future.
      PubDate: 2016-09-01
      DOI: 10.3390/economies4030019
      Issue No: Vol. 4, No. 3 (2016)
  • Economies, Vol. 4, Pages 5: Impact of Economic Freedom on the Growth Rate:
           A Panel Data Analysis

    • Authors: Mohammed Hussain, Mahfuzul Haque
      First page: 5
      Abstract: This study looks at some non-conventional determinants of economic growth, with the help of the newly developed economic freedom index datasets of the Heritage Foundation/Wall Street Journal(HF/WSJ), which is a cumulative index derived from several sub-indices (trade freedom index, financial freedom, labor freedom, business and fiscal freedom index). The cumulative economic freedom index show us how open and business friendly a country is. The sub-indices show us openness across different sector of the economy, for example, the financial sector or the trade sector etc. Traditional neo-classical economic theories have explained economic growth looking at the supply of labor, capital and state of technology, with little attention being paid to institutional factors. The study presents evidence based on two panel data-sets. The first set consists of 186 countries over the period 2013, 2014 and 2015 that show institutional factors play a crucial role in economic growth. A second data-set with data for 57 countries for the period 2004–2014 also show a positive impact on the index on the growth rate of per capita GDP.
      PubDate: 2016-03-28
      DOI: 10.3390/economies4020005
      Issue No: Vol. 4, No. 2 (2016)
  • Economies, Vol. 4, Pages 6: Nonlinear Monetary Policy Rules: An Essay in
           the Comparative Study on Egyptian and Tunisian Central Banks

    • Authors: Yosra Baaziz, Moez Labidi
      First page: 6
      Abstract: The purpose of this paper is to evaluate the behavior of monetary authorities in Tunisia and Egypt, in response to changes in macroeconomic variables over time based on LSTR model. In this sense, we estimate Taylor-type equations for short-term interest rate in Tunisia and Egypt using quarterly data covering the period 1998.Q4–2013.Q2. We find strong evidence that the real decision-making process followed by these central banks varies from one central bank to another and that it exhibits nonlinear patterns that better capture special events and unexpected contingencies i.e., the terrorist attack in the US in September 2001, the global financial crisis in 2008, and the effect of political instability with the onset of the revolution. Additionally, the presence of asymmetries in the reaction function of the Tunisian and Egyptian Bank requires disconnection from their automatic pilot rules and use of judgement to make decisions.
      PubDate: 2016-04-11
      DOI: 10.3390/economies4020006
      Issue No: Vol. 4, No. 2 (2016)
  • Economies, Vol. 4, Pages 7: Foreign Direct Investment, Trade, and Economic
           Growth: An Empirical Analysis of Bangladesh

    • Authors: Mohammed Hussain, Mahfuzul Haque
      First page: 7
      Abstract: The study reveals that there is a relationship between foreign direct investments, trade, and growth rate of per capita GDP for Bangladesh with the help of annual time series data for 1973 to 2014. The Vector Error Correction Model (VECM) analysis shows that there is a long-term relationship between these variables. To check the validity of the VECM model, we did a few post-estimation diagnostic tests, and found that the residuals of the regressions have a normal distribution and do not show any auto-correlation. The trade and foreign investment variables have a significant impact on the growth rate of GDP per capita. Because FDI and trade are two important components of economic growth in Bangladesh, it is important to frame policies that promote growth and reduce the barriers for capital flows.
      PubDate: 2016-04-15
      DOI: 10.3390/economies4020007
      Issue No: Vol. 4, No. 2 (2016)
  • Economies, Vol. 4, Pages 8: Germany versus the United States: Monetary
           Dominance in the Eurozone

    • Authors: Chee-Heong Quah
      First page: 8
      Abstract: This study inspects if there is greater convergence with Germany amongst the Eurozone founding members and if their relations with the hegemonic economy have been more symmetrical after “euroization”. The dimensions explored are those inspired by the optimum currency areas (OCA) framework. To some extent, the findings could signify if real convergence has been significantly endogenous. At the same time, to assess the relative dominance of Germany, the features against Germany are compared to those against US. In addition, the paper also appraises some aspects of economic performance to check whether economic conditions across the states have improved and converged after unification. In some convergence aspects, findings suggest remarkable convergence with Germany and across the states but also relative convergence with US. On economic performance, results indicate substantial improvements in inflation and unemployment. Amongst the founding states, Ireland has idiosyncratically shown serious divergences in a number of the convergence and performance measures.
      PubDate: 2016-04-26
      DOI: 10.3390/economies4020008
      Issue No: Vol. 4, No. 2 (2016)
  • Economies, Vol. 4, Pages 9: Modelling Monetary and Fiscal Governance in
           the Wake of the Sovereign Debt Crisis in Europe

    • Authors: Bodo Herzog
      First page: 9
      Abstract: This paper analyzes different government debt relief programs in the European Monetary Union. I build a model and study different options ranging from debt relief to the European Stability Mechanism (ESM). The analysis reveals the following: First, patient countries repay debt, while impatient countries more likely consume and default. Second, without ESM loans, indebted countries default anyway. Third, if the probability to be an impatient government is high, then the supply of loans is constrained. In general, sustainable and unsustainable governments should be incentivized differently especially in a supranational monetary union. Finally, I develop policy recommendations for the ongoing debate in the Eurozone.
      PubDate: 2016-05-05
      DOI: 10.3390/economies4020009
      Issue No: Vol. 4, No. 2 (2016)
  • Economies, Vol. 4, Pages 10: Sustainable Development and Corporate Social
           Responsibility in Sub-Saharan Africa: Evidence from Industries in Cameroon

    • Authors: Oyewole Oginni, Adewale Omojowo
      First page: 10
      Abstract: Present technological innovations and social organizations continue to impose risks and limitations on the efficient performance of the biosphere. Human activities have increasingly short-lived sustainable natural endowments, to the extent that, the multiplier effects have ripples beyond the traditional benefits of economic production and consumption. Therefore, this study addressed practical concerns on how industries in Sub-Saharan Africa promote sustainable development in their corporate social responsibility models, using industries in Cameroon as a case study; it examined economic, social, and environmental components of sustainable development and corporate social responsibility (CSR). Our sample consists of 335 business enterprises from the last Censure Survey of Enterprises in Cameroon. The study adopted a systematic analysis through the Adjusted Residual Test, and the Phi and Cramer’s V tests. Findings revealed that industries in Cameroon prioritize environmental and social dimensions over economic dimensions. However, a few large enterprises implement a broad CSR that promotes sustainable business practices, whereas smaller ones do not; industries in Cameroon implement environmental dimensions of CSR as a safe buffer and a social dimension as philanthropy. Hence, there is no concrete evidence that industries promote sustainable development via CSR in Cameroon. The implementation of a sustainable business model is a precondition for promoting sustainable development via CSR. Industries should realize the concrete value in implementing a sustainable business model that helps to adjust to the complex and increasingly changing business environment.
      PubDate: 2016-05-18
      DOI: 10.3390/economies4020010
      Issue No: Vol. 4, No. 2 (2016)
  • Economies, Vol. 4, Pages 11: Annual City Festivals as Tools for
           Sustainable Competitiveness: The World Port Days Rotterdam

    • Authors: Erwin van Tuijl, Leo van den Berg
      First page: 11
      Abstract: Many cities organize annual local festivals for the positive effects on urban development, although success is far from straightforward. This article reviews a case study of the World Port Days in Rotterdam in order to demonstrate how annual city festivals can contribute to sustainable competitiveness, despite limitations as well. We show how this maritime event—that is jointly organized by the business community, the Port Authority and the City Government—offers benefits for citizens as well as for firms. Our empirical results unveil that the business value of the event includes generation of societal support, image improvement, labor market development and networking, while the value for society refers to education, leisure and to a certain degree to social inclusion. The direct value of the event for business in terms of sales and recruitment is limited, while the long-term effects of educational function deserve further attention. Finally, we provide policy lessons that, when properly contextualized, other cities may help to use annual local festivals as tools for sustainable competitiveness.
      PubDate: 2016-05-23
      DOI: 10.3390/economies4020011
      Issue No: Vol. 4, No. 2 (2016)
  • Economies, Vol. 4, Pages 1: Falling behind, Forging Ahead and Falling
           behind Again: Thailand from 1870 to 2014

    • Authors: Anne Booth
      First page: 1
      Abstract: The paper argues that Thailand’s economic and social development from the late 19th century to the early 21st century presents a puzzle. For much of the period from 1870 to 1940, the country’s economic growth was slow, and the economy remained agricultural, with little diversification into modern industry or services. It was the only Southeast Asian country to escape direct colonization, and yet it did not use its relative freedom from colonial control to embark on a programme of accelerated economic, social and political modernization. The contrast with Meiji Japan has been made by several Thai and foreign scholars, but Thailand’s growth was also slow in comparison with several neighbouring countries under colonial control. Only in the late 1950s did economic growth start to accelerate and by 1996, per capita GDP was well ahead of other ASEAN countries except Malaysia and Singapore. The paper explores the reasons for the accelerated growth, looking particularly at the role of government. The paper also examines the reasons for the growth collapse of 1997/1998, and the slower economic growth since then.
      PubDate: 2016-01-22
      DOI: 10.3390/economies4010001
      Issue No: Vol. 4, No. 1 (2016)
  • Economies, Vol. 4, Pages 2: Acknowledgement to Reviewers of Economies in

    • Authors: Economies Editorial Office
      First page: 2
      Abstract: The editors of Economies would like to express their sincere gratitude to the following reviewers for assessing manuscripts in 2015. [...]
      PubDate: 2016-01-22
      DOI: 10.3390/economies4010002
      Issue No: Vol. 4, No. 1 (2016)
  • Economies, Vol. 4, Pages 3: Drivers of Growth in the Travel and Tourism
           Industry in Malaysia: A Geweke Causality Analysis

    • Authors: Tan Giap, Sasidaran Gopalan, Ye Ye
      First page: 3
      Abstract: The travel and tourism industry has been growing in importance for several developing countries. It has not only generated considerable foreign exchange revenues but has also contributed to the overall output and socio-economic development of these countries. Within the Asia and Pacific region, data for 2014 indicates that Malaysia was ranked very highly at no. 26 out of the 184 countries in the world in terms of the relative importance of the contribution of the travel and tourism industry to its national output. In this light, this paper aims to undertake an empirical examination of the factors driving international tourist arrivals into Malaysia. The paper attempts to identify the causal determinants of the growth of the travel and tourism industry, using quarterly data from 2000 to 2012, under a Geweke causality framework. The empirical results suggest Malaysia’s government expenditures on tourism promotion as well as infrastructure investments such as enhancing airport facilities are causal and significant determinants of growth in the travel and tourism industry.
      PubDate: 2016-02-26
      DOI: 10.3390/economies4010003
      Issue No: Vol. 4, No. 1 (2016)
  • Economies, Vol. 4, Pages 4: Does Trust Matter for Entrepreneurship:
           Evidence from a Cross-Section of Countries

    • Authors: Oasis Kodila-Tedika, Julius Agbor
      First page: 4
      Abstract: Differences in trust levels between countries explain the observed discrepancies in entrepreneurial spirit amongst them. We test this hypothesis with a cross-section of 60 countries in 2010. Our findings suggest that about half of the variation in entrepreneurial spirit across countries in the world is driven by trust considerations. This result is robust to regional clustering, outliers and alternative conditioning variables. The findings of the study indicate that while formal incentives to nurture entrepreneurship must be maintained, policy makers should also seek to pay attention to the role of trust cultivated through informal networks.
      PubDate: 2016-03-04
      DOI: 10.3390/economies4010004
      Issue No: Vol. 4, No. 1 (2016)
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