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Journal Cover Economies
  [1 followers]  Follow
  This is an Open Access Journal Open Access journal
   ISSN (Online) 2227-7099
   Published by MDPI Homepage  [198 journals]
  • Economies, Vol. 6, Pages 2: Human Capital, Social Capabilities and
           Economic Growth

    • Authors: Muhammad Ali, Abiodun Egbetokun, Manzoor Memon
      First page: 2
      Abstract: Theoretically, human capital is conclusively believed to be positively related with economic growth. While empirically, the said relationship does not always hold for several reasons. Thus, the current paper presents new results on a set of conditions under which human capital is robustly and positively associated with economic growth. Using data for 132 countries over 15 years, the empirical results reveal that human capital plays a positive role in per capita GDP growth only in the presence of better economic opportunities and high-quality legal institutions. In fact, economic opportunities reinforce the effect of human capital on growth: the easier it is to do business and trade domestically or internationally, the stronger the effect of human capital on growth. In conclusion, the findings suggest that inconclusive results in previous empirical studies on human capital and growth might be due to omitted variable bias as these studies do not include variables related to social capabilities.
      Citation: Economies
      PubDate: 2018-01-02
      DOI: 10.3390/economies6010002
      Issue No: Vol. 6, No. 1 (2018)
  • Economies, Vol. 6, Pages 1: Sets of Sustainable Development Indicators in
           Vietnam: Status and Solutions

    • Authors: Tri Ngo Dang, Chi Tran Thuy, Y. Tran Van, Tuan Nguyen Thanh
      First page: 1
      Abstract: There are some sets of sustainable development indicators (SDIs) at different regional scales and the Millennium development goals indicators (MDGIs) and Sustainable Development Goals (SDGIs) are employed in Vietnam. Actually, building and applying SDIs have faced different difficulties and this has led to a reduction in their value. Solutions to improve SDIs have been proposed and completed. This paper aims to review the SDIs, MDGIs, and SDGIs in Vietnam and to propose recommendations for building and effectively applying them in practice in Vietnam. Two national SDIs, one regional SDI, one local SDI, and some provincial SDIs, in addition to the results of MDGIs/SDGIs implementation, were analyzed. The common limitation of Government promulgated SDIs was found to not be feasible as they are applied in practice. Proposed solutions are building pilot SDIs for specific regions in Vietnam based on UN guidelines from 2007 and calculating practical values of SDIs for pilot regions, subsequently recommending relevant authorities in Vietnam to change or adjust promulgated SDIs. The experiences of procedure used to develop the pilot SDIs and effective handing over the usage of SDIs to stakeholders should also be considered when developing the sustainable development goals indicators in the future.
      Citation: Economies
      PubDate: 2017-12-25
      DOI: 10.3390/economies6010001
      Issue No: Vol. 6, No. 1 (2017)
  • Economies, Vol. 5, Pages 36: Labor Costs and Foreign Direct Investment: A
           Panel VAR Approach

    • Authors: Bahar Bayraktar-Sağlam, Selin Sayek Böke
      First page: 36
      Abstract: This paper examines the endogenous interaction between labor costs and Foreign Direct Investment (FDI) in the OECD countries via the Panel VAR approach under system GMM estimates for the period 1995–2009. The available data allows identifying the relevance of the components of labor costs, and allows a detailed analysis across different sectors. Empirical findings have revealed that sectoral composition of FDI and the decomposition of labor costs play a significant role in investigating the dynamic association between labor costs and FDI. Further, results suggest that labor market policies should focus on productivity-enhancing tools in addition to price hindering tools.
      Citation: Economies
      PubDate: 2017-09-26
      DOI: 10.3390/economies5040036
      Issue No: Vol. 5, No. 4 (2017)
  • Economies, Vol. 5, Pages 37: Fiscal Deficit and Its Impact on Economic
           Growth: Evidence from Bangladesh

    • Authors: Mohammed Hussain, Mahfuzul Haque
      First page: 37
      Abstract: The findings from the VECM for BBS data reveal that there is a positive and significant relationship between FD and GDPGR, supporting the Keynesian theory, while findings from the VECM for World Bank data indicate that the impact of Fiscal Deficit (FD) on GDPGR is mild but negative and significant at the 5% level. This contradicts the Keynesian theory, but is in accord with Neo-classical theory which asserts that fiscal deficits lead to a drop in the GDP. Nevertheless, the government must strive to keep deficit under control, not to hamper growth, and expenditure ought to be set so as to avoid massive deficits leading to debt financing and the crowding-out effect of private investment. If deficits become unsustainable, it can lead to higher interest payments, and the government may well default. Although in the economic literature, there is no definitive conclusion as to whether fiscal deficit helps or hinders economic growth for any country, many argue that fiscal deficit leads to economic growth of a country, which cannot be achieved only through domestic savings, not enough for investment. It can be assumed safely that to some extent fiscal deficit is good for economic growth if the borrowed money is spent on beneficial projects, provided the return from such investments exceeds the funding cost. For future research work, it will be interesting to examine the relationships between government spending, economic growth and long-term interest rate for Bangladesh.
      Citation: Economies
      PubDate: 2017-10-02
      DOI: 10.3390/economies5040037
      Issue No: Vol. 5, No. 4 (2017)
  • Economies, Vol. 5, Pages 38: Stochastic Dominance and Omega Ratio:

    • Authors: Xu Guo, Xuejun Jiang, Wing-Keung Wong
      First page: 38
      Abstract: Both stochastic dominance and Omegaratio can be used to examine whether the market is efficient, whether there is any arbitrage opportunity in the market and whether there is any anomaly in the market. In this paper, we first study the relationship between stochastic dominance and the Omega ratio. We find that second-order stochastic dominance (SD) and/or second-order risk-seeking SD (RSD) alone for any two prospects is not sufficient to imply Omega ratio dominance insofar that the Omega ratio of one asset is always greater than that of the other one. We extend the theory of risk measures by proving that the preference of second-order SD implies the preference of the corresponding Omega ratios only when the return threshold is less than the mean of the higher return asset. On the other hand, the preference of the second-order RSD implies the preference of the corresponding Omega ratios only when the return threshold is larger than the mean of the smaller return asset. Nonetheless, first-order SD does imply Omega ratio dominance. Thereafter, we apply the theory developed in this paper to examine the relationship between property size and property investment in the Hong Kong real estate market. We conclude that the Hong Kong real estate market is not efficient and there are expected arbitrage opportunities and anomalies in the Hong Kong real estate market. Our findings are useful for investors and policy makers in real estate.
      Citation: Economies
      PubDate: 2017-10-19
      DOI: 10.3390/economies5040038
      Issue No: Vol. 5, No. 4 (2017)
  • Economies, Vol. 5, Pages 39: Does Foreign Direct Investment Harm the
           Environment in Developing Countries' Dynamic Panel Analysis of Latin
           American Countries

    • Authors: Jungho Baek, Yoon Choi
      First page: 39
      Abstract: This article sets out to study the FDI–environment nexus within a dynamic panel data framework. To that end, the pooled mean group (PMG) method of Pesaran et al. (1999) is used to assess the impact of FDI on CO2 emissions, controlling for income and energy consumption, using a panel of 17 Latin American countries. Our results using the full sample show that FDI increases CO2 emissions, confirming the pollution haven hypothesis. But when splitting the data into different income groups, FDI inflows only in high-income countries increase CO2 emissions. In addition, CO2 emissions with growth tend to increase monotonically within the full sample and middle-income countries. Finally, energy consumption is found to increase CO2 emissions in all cases: the full sample, high-, middle- and low-income countries.
      Citation: Economies
      PubDate: 2017-10-23
      DOI: 10.3390/economies5040039
      Issue No: Vol. 5, No. 4 (2017)
  • Economies, Vol. 5, Pages 40: Analyzing the Tourism–Energy–Growth Nexus
           for the Top 10 Most-Visited Countries

    • Authors: Cem Işik, Eyüp Doğan, Serdar Ongan
      First page: 40
      Abstract: By using the Emirmahmutoglu–Kose bootstrap Granger non-causality method, this study explores the directions of causality among tourist arrivals, tourism receipts, energy consumption and economic growth for the top 10 most-visited countries (France, the USA, Spain, China, Italy, Turkey, Germany, the United Kingdom, Russia, and Mexico) in the world. This study finds a variety of causal directions between the pair of analyzed variables for each country and the panel. Since cross-sectional dependence exists across the top countries for the analyzed variables, the bootstrap Granger causality test that accounts for the mentioned issue in the estimation process presumably produces reliable and accurate outputs. Further results and policy implications are discussed in this empirical study.
      Citation: Economies
      PubDate: 2017-10-30
      DOI: 10.3390/economies5040040
      Issue No: Vol. 5, No. 4 (2017)
  • Economies, Vol. 5, Pages 41: Urban Climate Vulnerability in Cambodia: A
           Case Study in Koh Kong Province

    • Authors: Kimleng Sa
      First page: 41
      Abstract: This study investigates an urban climate vulnerability in Cambodia by constructing an index to compare three different communes, Smach Meanchey, Daun Tong, and Steong Veng, located in the Khemarak Phoumin district, Koh Kong province. It is found that Daun Tong commune is the most vulnerable location among the three communes, followed by Steong Veng. Besides, vulnerability as Expected Poverty (VEP) is used to measure the vulnerability to poverty, that is, the probability of a household income to fall below the poverty line, as it captures the impact of shocks can be conducted in the cross-sectional study. It applies two poverty thresholds: the national poverty line after taking into account the inflation rate and the international poverty line defined by the World Bank, to look into its sensitivity. By using the national poverty line, the study reveals that more than one-fourth of households are vulnerable to poverty, while the international poverty threshold shows that approximately one-third of households are in peril. With low levels of income inequality, households are not highly sensitive to poverty; however, both poverty thresholds point out that the current urban poor households are more vulnerable than non-poor families.
      Citation: Economies
      PubDate: 2017-11-07
      DOI: 10.3390/economies5040041
      Issue No: Vol. 5, No. 4 (2017)
  • Economies, Vol. 5, Pages 42: Analysis of Supply and Demand to Enhance

    • Authors: Ani Wijayanti, Janianton Damanik, Chafid Fandeli, Sudarmadji
      First page: 42
      Abstract: The Smart Park (also known as Taman Pintar) is a major educational tourist destination in Yogyakarta, which offers a variety of attractions that are very interesting for tourists. The main purpose of tourists visiting Smart Park is to obtain an educational tourism experience. This subjective experience raises specific challenges for Smart Park as it works towards being a competitive destination. The purpose of this study is to analyze the aspects of the educational tourism experience that are affected by tourism demand and supply. Data were collected from surveys that were sent to 150 respondents and were analyzed using path analysis. The results show that tourism demand and supply contributed to the variation of tourism activities by 45.1%, while the remaining was explained by other variables, such as national budget, local budget, ticket sale, and cooperation with some stakeholders. Tourism supply had a higher effect than tourism demand. Tourism demand did not particularly affect tourism experience. However, the results of the path analysis indicate that tourism supply had direct and indirect effects on tourism experience through the variation of tourism activities, with the indirect effect being the most predominant. In the management of Smart Park, there is still a gap between tourism demand and supply, so the tourism experience has not been maximized to its full potential.
      Citation: Economies
      PubDate: 2017-11-13
      DOI: 10.3390/economies5040042
      Issue No: Vol. 5, No. 4 (2017)
  • Economies, Vol. 5, Pages 43: An Investigation of (Non-) Inclusive Growth
           in Nigeria’s Sub-Nationals: Evidence from Elasticity Approach

    • Authors: Enobong Udoh, Ndem Ayara
      First page: 43
      Abstract: This paper aims to estimate and rank the performance of sub-nationals in terms of their quality of growth using an index of inequality elasticity of poverty. The study puts forward a scenario matrix to hypothesize the four qualities of growth according to its interactions with inequality and poverty. This model is useful for developing countries that lack GDP data at the sub-national level, provided growth (at the national level) has been positive for the period under review. The study found that for Nigeria’s sub-nationals, the null hypothesis of non-inclusive growth was rejected for the different poverty measures.
      Citation: Economies
      PubDate: 2017-11-20
      DOI: 10.3390/economies5040043
      Issue No: Vol. 5, No. 4 (2017)
  • Economies, Vol. 5, Pages 44: Is There a Limit to Growth' Comparing the

    • Authors: Cherie Lu
      First page: 44
      Abstract: With the growing global awareness of the requirement for sustainable development, economic development is no longer the sole objective of business activities. The need to find a balance between environmental impacts and economic benefits is especially the case for airport operations in or around cities. This study measured the environmental costs and economic benefits and of an airport for a period of 10 years, using Taipei Songshan Airport for the empirical analysis, to examine whether the environmental costs could outweigh the economic benefits. Of all the environmental negative side effects, aircraft engine emissions and noise nuisance are considered the main sources of environmental impacts. The dose-response method and the hedonic price method, respectively, were used for estimating the social costs of these. Income generation from both direct and secondary employment is measured as economic benefits by applying the Garin-Lowry model, originally developed in 1966, for estimation of the employment multiplier. The results show that, in general, the operation of Taipei Songshan Airport brought more economic benefits than environmental costs. The sensitivity analysis of emissions and noise social cost parameters shows that the environmental costs might have exceeded the economic benefits in 2008 and 2009 in certain high emissions and noise social cost cases.
      Citation: Economies
      PubDate: 2017-11-14
      DOI: 10.3390/economies5040044
      Issue No: Vol. 5, No. 4 (2017)
  • Economies, Vol. 5, Pages 45: Effects of Cost Factors on National
           Manufacturing Based on Global Perspectives

    • Authors: Fangtao Liu, Yong Ding, Jia Gao, Pu Gong
      First page: 45
      Abstract: Currently, the real economy is the important basis for the development of a country, especially after the global financial crisis in 2008. Given that the manufacturing industry is the main part of the national real economy, many developed and developing countries have paid considerable attention to its significance. This study focused on cost factors given that they influence national manufacturing development. Initially, this study proposed two elements, namely, manufacturing development scale and manufacturing development level, to evaluate national manufacturing development from two aspects: quantity and quality. Subsequently, we extracted a series of cost factors on the bass of the theoretical framework and literature, including labor costs, financing costs, tax and rental costs, energy and raw materials, foreign trade exports and business environments. On the basis of the data of 13 main manufacturing countries around the world from 2000 to 2015, we tested the influence degree of each cost element index on the scale and level of national manufacturing industry development through a two-way fixed effects model and incorporated it with the development of China’s manufacturing industry as a case study. Finally, we deduced the future development trend of the manufacturing industry by specifically analyzing the cost factors affecting the development of this industry and provided policy suggestions. The main innovation and contribution of this study including: to comprehensively evaluate the national manufacturing development from two aspects, namely, “quantity” and “quality”; to identify the impact of national cost of the six elements; to demonstrate and determine the extent of its impact on the development trend of manufacturing sector and carry out pre-judgment through empirical research on each indicator; to provide policy recommendations targeted for each of the indicators.
      Citation: Economies
      PubDate: 2017-11-20
      DOI: 10.3390/economies5040045
      Issue No: Vol. 5, No. 4 (2017)
  • Economies, Vol. 5, Pages 46: Analysis of Variance of the Effects of a
           Project’s Location on Key Issues and Challenges in Post-Disaster
           Reconstruction Projects

    • Authors: Dzulkarnaen Ismail, Taksiah Majid, Ruhizal Roosli
      First page: 46
      Abstract: After a disaster, the reconstruction phase is driven by immediate challenges. One of the main challenges in the post-disaster period is the way that reconstruction projects are implemented. Reconstruction cannot move forward until some complex issues are settled. The purposes of this research are to highlight the issues and challenges in post-disaster reconstruction (PDR) projects and to determine the significant differences between the issues and challenges in different locations where PDR projects are carried out. The researchers collected data within international non-governmental organisations (INGOs) on their experience of working with PDR projects. The findings of this research provide the foundation on which to build strategies for avoiding project failures; this may be useful for PDR project practitioners in the future.
      Citation: Economies
      PubDate: 2017-11-27
      DOI: 10.3390/economies5040046
      Issue No: Vol. 5, No. 4 (2017)
  • Economies, Vol. 5, Pages 47: An Inverse Problem Study: Credit Risk Ratings
           as a Determinant of Corporate Governance and Capital Structure in Emerging
           Markets: Evidence from Chinese Listed Companies

    • Authors: ManYing Kang, Marcel Ausloos
      First page: 47
      Abstract: Credit risk rating is shown to be a relevant determinant in order to estimate good corporate governance and to self-optimize capital structure. The conclusion is argued from a study on a selected (and justified) sample of (182) companies listed on the Shanghai Stock Exchange (SHSE) and the Shenzhen Stock Exchange (SZSE) and which use the same Shanghai Brilliance Credit Rating & Investors Service Company (SBCR) assessment criteria, for their credit ratings, from 2010 to 2015. Practically, 3 debt ratios are examined in terms of 11 characteristic variables. Moreover, any relationship between credit rating and corporate governance can be thought to be an interesting finding. The relationship we find between credit rating and leverage is not as evident as that found by other researchers for different countries; it is significantly positively related to the outside director, firm size, tangible assets and firm age, and CEO and chairman office plurality. However, leverage is found to be negatively correlated with board size, profitability, growth opportunity, and non-debt tax shield. Credit rating is positively associated with leverage, but in a less significant way. CEO-Board chairship duality is insignificantly related to leverage. The non-debt tax shield is significantly correlated with leverage. The correlation coefficient between CEO duality and auditor is positive but weakly significant, but seems not consistent with expectations. Finally, profitability cause could be regarded as an interesting finding. Indeed, there is an inverse correlation between profitability and total debt (Notice that the result supports the pecking order theory). In conclusion, it appears that credit rating has less effect on the so listed large Chinese companies than in other countries. Nevertheless, the perspective of assessing credit risk rating by relevant agencies is indubitably a recommended time dependent leverage determinant.
      Citation: Economies
      PubDate: 2017-11-29
      DOI: 10.3390/economies5040047
      Issue No: Vol. 5, No. 4 (2017)
  • Economies, Vol. 5, Pages 48: Do Technological Innovations Affect
           Unemployment' Some Empirical Evidence from European Countries

    • Authors: Kristina Matuzeviciute, Mindaugas Butkus, Akvile Karaliute
      First page: 48
      Abstract: This paper analyses theoretical and empirical scientific literature about the impact of technological innovations on unemployment, considering the former as a key driver of long-term productivity and economic growth. Using panel data from 25 European countries for the period of 2000–2012, we aim to examine whether technological innovations affect unemployment. We used triadic patent families per million inhabitants as our main proxy for technological innovations, as well as other unemployment controls, in our model, which were estimated using System Generalized Method of Moments (SGMM). Finding no significant relationship between technological innovations and unemployment in our base estimation, we re-estimated it testing the impact with a time lag as well as using alternative proxies for technological innovations. Overall, the research estimations do not suggest that technological innovations have an effect on unemployment.
      Citation: Economies
      PubDate: 2017-12-07
      DOI: 10.3390/economies5040048
      Issue No: Vol. 5, No. 4 (2017)
  • Economies, Vol. 5, Pages 49: The Consequences of Corruption on Inflation
           in Developing Countries: Evidence from Panel Cointegration and Causality

    • Authors: Şerife Özşahin, Gülbahar Üçler
      First page: 49
      Abstract: Up until the 1980s, studies on corruption were dominated by disciplines of public administration and sociology. In the following years, however, economists have also provided a good amount of research on this issue. According to Transparency International Agency, corruption, which has a negative impact on most macroeconomic indicators, is “the abuse of entrusted power for private gain”. Even though the disruption of corruption causing weak growth and investment rates has long been examined, there is little evidence regarding its impact on inflation. In this study, the nexus between corruption and inflation was investigated for 20 countries over the period 1995–2015. Estimation results indicated that high corruption increased inflation rates, and that there was a unidirectional causal relationship from corruption to inflation for ten countries in the sample.
      Citation: Economies
      PubDate: 2017-12-11
      DOI: 10.3390/economies5040049
      Issue No: Vol. 5, No. 4 (2017)
  • Economies, Vol. 5, Pages 50: Determinants of Related and Unrelated Export

    • Authors: Muhammad Ali
      First page: 50
      Abstract: This paper contributes to the literature on determinants of the export diversification by introducing related variety (RV) and unrelated variety (UV) in the analysis in addition to the traditional entropy based measure at three-digit Standard International Trade Classification (SITC) level, overall variety (OV). RV measures variety in cognitively related industries, while UV measures variety in industries that are unrelated to each other. Studies on RV and UV have shown that the dynamics of their relationship with economic growth and innovation may differ and one would expect that the determinants of RV and UV may also be different. Therefore, using data on manufacturing sector exports for 130 countries from 1996 to 2011, this paper identifies the determinants of export diversification with primary focus on foreign direct investment as an external source of knowledge and a stimulus to entrepreneurship and human capital as a measure of productive capabilities. Considering the concern of endogeneity bias, estimations of the econometric models were performed using generalized method of moments. Findings show that some of the determinants of diversification affect RV, UV and OV differently. For instance, foreign direct investment (FDI) negatively affects RV while it has no significant relationship with OV and UV. Moreover, interaction of human capital with FDI appears to be positive and significant for UV and RV while interaction of human capital with trade openness is significant and positive for RV only, showing the importance of knowledge through external sources in the process of related diversification.
      Citation: Economies
      PubDate: 2017-12-13
      DOI: 10.3390/economies5040050
      Issue No: Vol. 5, No. 4 (2017)
  • Economies, Vol. 5, Pages 51: The Effects of Real Exchange Rates and Income
           on International Tourism Demand for the USA from Some European Union

    • Authors: Serdar Ongan, Cem Işik, Dilek Özdemir
      First page: 51
      Abstract: This paper investigates the effects of real exchange rates and income on inbound tourism demand (tourist arrivals) from Germany, France, the UK, the Netherlands, Italy, Spain, and Sweden to the USA over the period 1996Q3–2015Q1. To achieve this aim, the Harmonized Index of Consumer Prices (HICP) for Restaurants and Hotels was used for the first time—instead of using the general Consumer Price Index (CPI)—to transform the nominal exchange rate into the real exchange rate as an independent variable in tourism demand analysis models. Panel co-integration analysis under the cross-sectional dependence (CD) test and common correlated effects (CCE) approach was applied. Empirical results show that tourists visiting the USA are more sensitive to changes in the real exchange rate than changes in GDP. While French tourists respond highly to the GDP, British tourists respond highly to the real exchange rate. It should also be noted that the UK, having the highest responsiveness to the real exchange rate, is a country outside the Eurozone and also intends to leave the European Union.
      Citation: Economies
      PubDate: 2017-12-18
      DOI: 10.3390/economies5040051
      Issue No: Vol. 5, No. 4 (2017)
  • Economies, Vol. 5, Pages 22: The Relevance of Political Stability on FDI:
           A VAR Analysis and ARDL Models for Selected Small, Developed, and
           Instability Threatened Economies

    • Authors: Petar Kurecic, Filip Kokotovic
      First page: 22
      Abstract: This paper studies the relevance of political stability on foreign direct investment (FDI) and the relevance of FDI on economic growth, in three panels. The first panel contains 11 very small economies; the second contains five well-developed and politically stable economies with highly positive FDI net inflows, while the third is a panel with economies that are prone to political violence or targeted by the terrorist attacks. We employ a Granger causality test and implement a vector autoregressive (VAR) framework within the panel setting. In order to test the sensitivity of the results and avoid robust errors, we employ an ARDL model for each of the countries within every panel. Based upon our results, we conclude that there is a long-term relationship between political stability and FDI for the panel of small economies, while we find no empiric evidence of such a relationship for both panels of larger and more developed economies. Similarly to the original hypothesis of Lucas (1990), we find that FDI outflows tend to go towards politically less stable countries. On the other hand, the empiric methodology employed did not find such conclusive evidence in the panels of politically more developed countries or in the small economies that this paper observes.
      PubDate: 2017-06-22
      DOI: 10.3390/economies5030022
      Issue No: Vol. 5, No. 3 (2017)
  • Economies, Vol. 5, Pages 23: Regime-Switching Effect of Tourism
           Specialization on Economic Growth in Asia Pacific Countries

    • Authors: Geng-Nan Chiang, Wei-Ying Sung, Wen-Guu Lei
      First page: 23
      Abstract: In the past 30 years, many studies have focused on exploring the relationship between tourism development and economic growth. However, there has been no consensus reached concerning of the relationship. This study will attempt to clarify the relationship between tourism development and economic growth. The purpose of this study is to analyze the relationship between tourism development and economic growth. This study applies the Panel Smooth Transition Regression Model (PSTR) proposed by Gonzalez et al. (2005) to investigate the regime-switching effect of tourism specialization on economic growth in Asia Pacific countries over the period 1996–2009. The results are as follows: (a) there were regime-switching effects of tourism specialization on economic growth; (b) the tourism specialization on economic growth has a better explanation for the effects of non-linear PSTR than linear PLS (Panel Least Squares); (c) in medium degree of tourism specialization countries (the value is between 0.0123~0.01663), tourism development has a significantly positive influence on economic growth, but consumption ability and investment ratios have a significantly negative influence on economic growth; (d) in low or high degree of tourism specialization countries (the value is below 0.0123 or above 0.01663), tourism development has a reduced influence on economic growth, and significantly positive influence on consumption ability and investment ratios. On the basis of these results, this study presents policy recommendations and areas for future research.
      PubDate: 2017-06-27
      DOI: 10.3390/economies5030023
      Issue No: Vol. 5, No. 3 (2017)
  • Economies, Vol. 5, Pages 24: The Nonlinearity of the New Keynesian
           Phillips Curve: The Case of Tunisia

    • Authors: Imen Kobbi, Foued-Badr Gabsi
      First page: 24
      Abstract: This article seeks to check the nonlinearity of the Phillips curve in Tunisia for the 1993–2012 period, relying on a hybrid new Keynesian Phillips curve modeled via a Logistic Smooth Transition Regression (LSTR) model with endogenous variables. We estimate this model using the nonlinear instrumental variables. The empirical results corroborate the new Keynesian assumption ofprice rigidity and show that the response of inflation to the output gap tends to be significant only if the inflation rate tends to be relatively high and exceeds a certain threshold. For a low inflation rate, the price rigidity dominates. This result is particularly evident in Tunisia, especially for the years following the 2011 revolution during which the elasticity of inflation rate to an excess demand has become highly important and the inflation rate experienced record levels.
      Citation: Economies
      PubDate: 2017-07-07
      DOI: 10.3390/economies5030024
      Issue No: Vol. 5, No. 3 (2017)
  • Economies, Vol. 5, Pages 25: Nonlinear Effects of Remittances on Per
           Capita GDP Growth in Bangladesh

    • Authors: Gazi Hassan, Shamim Shakur
      First page: 25
      Abstract: This paper examines the impact of inward remittances flows on per capita gross domestic product (GDP) growth in Bangladesh during 1976–2012. We find that the growth effect of remittances is negative at first but becomes positive at a later stage, evidence of a non-linear relationship. Unproductive use of remittances was rampant in the beginning when they were received by migrant families, but better social and economic investments led to more productive utilization of remittances receipts at later periods. This suggests a U-shaped relationship between remittances and per capita GDP growth. Unlike what is suggested in the literature, that the effect of remittances is more pronounced in a less financially developed economy, our evidence does not show that the effect of remittances on per capita GDP growth in Bangladesh is conditional on the level of financial development.
      Citation: Economies
      PubDate: 2017-07-17
      DOI: 10.3390/economies5030025
      Issue No: Vol. 5, No. 3 (2017)
  • Economies, Vol. 5, Pages 26: From Clusters to Smart Specialization:
           Tourism in Institution-Sensitive Regional Development Policies

    • Authors: Maximilian Benner
      First page: 26
      Abstract: In the European Union and its neighborhood, regional development has increasingly come to focus on agglomerations during the last three decades. Notably, during the 1990s and early 2000s, clustering was the major policy focus in regional development. Currently, the concept of smart specialization is applied all over the European Union and is attracting interest in the EU’s neighborhood. The tourism sector particularly tends to agglomerate regionally and even locally. While there is a large body of literature describing tourism clusters and while tourism features as a priority sector in many regional development strategies such as smart specialization strategies, there is a research gap on policy approaches applying agglomeration-oriented policy concepts to tourism destinations in an institution-sensitive way. This article argues that both cluster policy and smart specialization can be of considerable value for institution-sensitive tourism development, either when adapted to the specificities of the tourism sector or when integrating tourism development into wider, cross-sectoral strategies of regional development. Such a policy can be a valuable tool for local and regional development, provided that policies are designed in an institution-sensitive manner and respond to the particular institutional context prevailing in a tourist destination. The article illustrates some preliminary thoughts for institution-sensitive tourism development through cluster policy and smart specialization in Cyprus, Israel, and Tunisia.
      Citation: Economies
      PubDate: 2017-07-17
      DOI: 10.3390/economies5030026
      Issue No: Vol. 5, No. 3 (2017)
  • Economies, Vol. 5, Pages 27: Regional Economic Convergence in Turkey: Does
           the Government Really Matter for'

    • Authors: Mustafa Gömleksiz, Ahmet Şahbaz, Birol Mercan
      First page: 27
      Abstract: Solow (1956) has made an essential contribution to the Neo-classical growth approach through the economic convergence hypothesis. It assumes that poorer countries’ or regions’ per capita incomes tend to grow at faster rates than the richer ones. Convergence could occur either among a group of economies with the same steady states or within regions in which their fundamental dynamics differ, and thus they exhibit multiple steady states. This study aims to investigate convergence with respect to GDP per capita across NUTS 2 regions in Turkey for the time period 2004–2014. In the convergence process, we also inquire into role of government in terms of regional government investments and fixed investment incentives. All the empirical results confirm the validity of the convergence hypothesis at a regional level. Also, in the context of the convergence process, it is possible to conclude that the role of government is likely to be decisive in solving regional economic disparities.
      Citation: Economies
      PubDate: 2017-07-24
      DOI: 10.3390/economies5030027
      Issue No: Vol. 5, No. 3 (2017)
  • Economies, Vol. 5, Pages 28: A Soft Systems Approach to Knowledge Worker
           Productivity—Analysis of the Problem Situation

    • Authors: Helga Óskarsdóttir, Guðmundur Oddsson
      First page: 28
      Abstract: Low knowledge worker productivity is an important problem that needs to be addressed. Current research addressing this problem is fragmented and deals with different isolated elements of the problem. There is a need for a holistic approach to knowledge worker productivity. This paper takes the first steps of a holistic approach to knowledge worker productivity by using soft systems methodology to describe the problem situation. The main challenge of this research was the abstraction of the results from two literature reviews into simple rich pictures and specific root definitions to identify the fundamentals of knowledge worker productivity. The problem situation was explored from the perspective of two problem owners, the organization and the individual knowledge worker. The rich picture from the perspective of the organization highlighted that the organization must communicate what they perceive as value and create a work environment that promotes collaboration, encourages knowledge sharing, motivates and fulfills the needs of their knowledge workers. The rich picture from the perspective of the individual knowledge worker highlighted the fact that knowledge workers need to manage their personal resources, be effective and efficient to maximize their own productivity. This paper attempts to integrate these two perspectives into a holistic view.
      Citation: Economies
      PubDate: 2017-08-01
      DOI: 10.3390/economies5030028
      Issue No: Vol. 5, No. 3 (2017)
  • Economies, Vol. 5, Pages 29: Does Foreign Direct Investment Successfully
           Lead to Sustainable Development in Singapore'

    • Authors: Abdul Ridzuan, Nor Ismail, Abdul Che Hamat
      First page: 29
      Abstract: The role of foreign direct investment (FDI) inflows is tested on three main pillars of sustainable development (SD), which consists of economic growth, income distribution and environmental quality for Singapore. The analysis is performed by using Autoregressive Distributed Lag (ARDL) estimation technique. The sample data is based on annual data, covering the period from 1970 to 2013. The estimated long-run elasticity indicated that FDI inflows not only lead to higher economic growth and better environmental quality but also widen the income disparity in this country, which may disrupt its SD mission. The other two introduced variables that could also play a part as potential drivers for sustainable development (SD) are trade openness (TO) and financial development (FD). Based on the outcomes, TO has also led to higher economic growth and lower environmental degradation. However, this variable does not have significant impact on income distribution for Singapore. As for FD, it is found to have a significant and positive impact on economic growth and also successfully reduce the income inequality problem. On the contrary, this variable does not have any significant relationship with environmental quality, as indicated by carbon dioxide (CO2) emissions. Mixed evidence of a relationship is detected for other macroeconomic variables in the three estimates models. As the income inequality issue has become more serious, it is important for Singaporean policymakers to focus on attracting more foreign investors to invest in various sectors, in the hope that these companies can offer better wages to the local workers and thus improve income distribution in the country. More attention is needed to explore the potential role of TO and FD as drivers for SD in this country.
      Citation: Economies
      PubDate: 2017-08-07
      DOI: 10.3390/economies5030029
      Issue No: Vol. 5, No. 3 (2017)
  • Economies, Vol. 5, Pages 30: Accounting for Nonlinearity, Asymmetry,
           Heterogeneity, and Cross-Sectional Dependence in Energy Modeling: US
           State-Level Panel Analysis

    • Authors: Brantley Liddle
      First page: 30
      Abstract: This paper provides an example of several modeling and econometric advances used in the panel estimation of energy demand elasticities. The paper models the demand of total, industrial, and transport energy consumption and residential and commercial electricity consumption by analyzing US state-based panel data. The paper employs recently developed dynamic panel methods that address heterogeneity, nonstationarity, and cross-sectional dependence. In addition, the paper (i) considers possible nonlinear relationships between energy consumption and income without employing polynomial transformations of integrated income; and (ii) allows for and calculates possible asymmetric relationships between energy consumption and price. Finally, the paper models energy efficiency improvements by a nonlinear time trend. To our knowledge no other paper has combined all of the econometric and modeling advances that are applied here. Most of the results conformed to expectations; however, limited to no evidence of nonlinearities and asymmetries were uncovered.
      Citation: Economies
      PubDate: 2017-08-15
      DOI: 10.3390/economies5030030
      Issue No: Vol. 5, No. 3 (2017)
  • Economies, Vol. 5, Pages 31: A Brief Overview of International Migration
           Motives and Impacts, with Specific Reference to FDI

    • Authors: Masood Gheasi, Peter Nijkamp
      First page: 31
      Abstract: International migration has become one of the most debated topics in many developed and developing countries. Host countries are concerned about the socioeconomic consequences of international migration, while sending countries—from a developing country’s perspective—are concerned about the brain drain and loss of their younger population. This paper presents a concise literature review on existing theories of international migration, and long-run effects of international migration on Foreign Direct Investment (FDI). The empirical studies reviewed in this paper indicate a positive and statistically significant relationship between international migration and FDI.
      Citation: Economies
      PubDate: 2017-08-21
      DOI: 10.3390/economies5030031
      Issue No: Vol. 5, No. 3 (2017)
  • Economies, Vol. 5, Pages 32: The Nature of Spain’s International
           Cultural Tourism throughout the Economic Crisis (2008–2016): A
           Macroeconomic Analysis of Tourist Arrivals and Spending

    • Authors: Carmen Hidalgo, Olivier Maene
      First page: 32
      Abstract: Since the global economic and financial crisis of 2008, tourism has taken up a central position in the recovery of Spain’s severely damaged economy. If the first years after the recession signaled a considerable decline of the tourism sector, the later years in which those countries with the highest numbers of outgoing tourists to Spain had recovered, consolidated the tourism sector as one of the principal drivers of economic development. Testament to this are its contribution to a growing Gross Domestic Product (GDP) and decreasing unemployment, and its ability to stabilize the country’s balance of payments. On the other hand, tourism has also proven to be a complex economic sector, in which various factors have come together in different forms. Faced with the impossibility to consider every single one of these factors, this study has limited itself to researching those indicators that shape the international character of Spain’s cultural tourism sector, and subsequently determining how this sector performed from a macroeconomic perspective. The outcome of this study is to detect patterns that may allow for the development of more effective means for managing cultural tourism. The descriptive analysis of official cultural and tourism statistical data, and the synthetic representation of the results in various tables and graphs indicate that cultural tourism, at least in terms of international tourist arrivals, has indeed remained stable throughout the crisis, even though it has not grown significantly ever since.
      Citation: Economies
      PubDate: 2017-08-28
      DOI: 10.3390/economies5030032
      Issue No: Vol. 5, No. 3 (2017)
  • Economies, Vol. 5, Pages 33: The National Bank of Ukraine Communication
           Strategy Optimization within the Framework of Impact on Exchange Rate
           Expectations of Economic Agents

    • Authors: Roksolana Holub, Oleksandr Hlushchenko
      First page: 33
      Abstract: An important challenge in terms of smoothing excessive exchange rate volatility under the conditions of flexible exchange rate arrangement is optimization of the communication strategy of the country’s monetary regulator. Over the past two decades, communication (information support) has become an increasingly important aspect of monetary policy. Communication enables influence of the volatility of financial markets, improvement of the predictability of monetary policy, and helps to achieve macroeconomic objectives. Nevertheless, as of today, consensus on the issue into what the optimal strategy of the central bank communication is has not been reached, either in Ukraine, nor in developed countries yet. Considering the abovementioned, the methodical approaches to improve the central bank’s communication strategies, based on the use of its verbal interventions in the context of smoothing out excessive cyclical volatility of exchange rates of the national currency, are determined in this article. It is suggested to consider the growth of the factor “information signal/information noise” as a criterion of the central bank’s optimal communication strategy. It is proved that the monetary regulator’s main task should be the continual provision of information concerning a fundamentally justified level of the exchange rate and the level of deviation of the actual rate of the national currency from its fundamental-equilibrium level, as of a given time, to the national foreign exchange market participants. The methodological approach to the improvement of information support of forecasting fundamentally specified value of the national currency is outlined.
      Citation: Economies
      PubDate: 2017-09-04
      DOI: 10.3390/economies5030033
      Issue No: Vol. 5, No. 3 (2017)
  • Economies, Vol. 5, Pages 34: A Firm-Level Investigation of Innovation in
           the Caribbean: A Comparison of Manufacturing and Service Firms

    • Authors: Antonio Alleyne, Troy Lorde, Quinn Weekes
      First page: 34
      Abstract: A lack of growth remains a major concern for Caribbean countries. Private sector development has been identified as vital in addressing this problem. Innovation, a necessary condition for competitiveness, is a key channel through which the private sector can help to stimulate growth. An analysis of innovation at the firm level for Caribbean manufacturing and services sectors shows that patent rights, the level of domestic sales, collaboration for innovation purposes, innovation intensity (that is, the efficiency with which innovation funds are managed), availability of technology, knowledge about new market trends, domestic sales, and the size of the workforce are critical to the innovation process in both sectors. Several differences also exist. Innovative service firms are older, in contrast to manufacturing firms, which tend to be younger; foreign ownership is key for service firms; and both types of firms face different obstacles to innovation. Policymakers should tailor policies that take such differences into account.
      Citation: Economies
      PubDate: 2017-09-12
      DOI: 10.3390/economies5030034
      Issue No: Vol. 5, No. 3 (2017)
  • Economies, Vol. 5, Pages 35: The Effect of Access to Information and
           Communication Technology on Household Labor Income: Evidence from One
           Laptop Per Child in Uruguay

    • Authors: Joaquin Marandino, Phanindra Wunnava
      First page: 35
      Abstract: This paper examines the effect of the One Laptop Per Child program in Uruguay (Plan Ceibal) on household labor income. Since 2007, the Uruguayan government has delivered one laptop to every child and teacher in public primary schools. This program has considerably increased access to information technology within households, as evidenced by parents’ utilization of said technology. Households in the department of Florida received laptops in 2007, while those in the department of Canelones received them in 2009. Therefore, using data from Household Surveys from the National Institute of Statistics in Uruguay, a difference-in-difference model is estimated to capture the effect of the plan of giving laptops on labor income. The results indicate that there is a statistically significant positive effect of the plan on household labor income for households below median income, specifically, those at the 10th and 20th quantiles. Such findings suggest that the program has greater potential when targeted to low-income households, where parents possess lower computer skills.
      Citation: Economies
      PubDate: 2017-09-19
      DOI: 10.3390/economies5030035
      Issue No: Vol. 5, No. 3 (2017)
  • Economies, Vol. 5, Pages 11: Natural Resources and Productivity: Can
           Banking Development Mitigate the Curse?

    • Authors: Ramez Badeeb, Hooi Lean
      First page: 11
      Abstract: This paper contributes to the literature concerning the natural resource curse by exploring the role of banking development in reducing the resource curse in a natural resource-based country, Yemen. Using time series data over the period 1980–2012, we find that natural resource dependence is negatively related to productivity, and this relationship depends on the level of banking development. Increasing this level reduces the negative consequences of the natural resource curse. Therefore, policymakers should proactively encourage credit to enable the banking sector to play a more efficient intermediary role in mobilizing domestic savings and channeling them to productive investments. This will help to accumulate permanent productive wealth to enhance any diversification effort and compensate for the decline in natural resource production.
      PubDate: 2017-04-06
      DOI: 10.3390/economies5020011
      Issue No: Vol. 5, No. 2 (2017)
  • Economies, Vol. 5, Pages 12: Household’s Perception of Water Quality and
           Willingness to Pay for Clean Water in Mexico City

    • Authors: Lilia Rodríguez-Tapia, Daniel Revollo-Fernández, Jorge Morales-Novelo
      First page: 12
      Abstract: A 2011 survey of Mexico City’s households revealed that families prefer alternative sources of drinking water instead of relying in the city’s quality supply services. These include the purchase of bottled water, installation of filtration devices, and other means of water purification. The demand for better water quality was tested by estimating the household’s willingness to pay (WTP), using a contingency valuation (CV) experiment through an open-format questionnaire and by estimating a censored econometric (Tobit) model. The econometric study revealed that the WTP for better water quality is influenced by variables related with distrust of the water quality provided by the City and the organoleptic characteristics of the water supply, as well as spending on bottled water or water purification technologies. The average WTP surcharge for better potable water quality is US$3.1 or 4.7% of the bimonthly water bill, which is about 0.22% of the average family income in Mexico City. The percentage of WTP to income is bigger in poor families. This suggests that improving water quality is of greater importance for lower income families. Findings are consistent with previous studies that estimated the WTP for improvements in the services that supply water to households in the city. These include reduction of inefficiency and intermittency of the supply along with water quality, improve measuring water meters, reducing the obsolescence of the infrastructure and increasing adequate maintenance. Our research is the first to estimate the WTP for better water quality in Mexico City and constitutes a reference point for those that address the problem of water quality and its impact on the welfare and income of families.
      PubDate: 2017-04-11
      DOI: 10.3390/economies5020012
      Issue No: Vol. 5, No. 2 (2017)
  • Economies, Vol. 5, Pages 13: The Role of Oil Prices in Exchange Rate
           Movements: The CIS Oil Exporters

    • Authors: Fakhri Hasanov, Jeyhun Mikayilov, Cihan Bulut, Elchin Suleymanov, Fuzuli Aliyev
      First page: 13
      Abstract: Undoubtedly, oil prices play a crucial role in the macroeconomic performances of oil-exporting developing countries. In this regard, the exchange rate is one of the key macroeconomic indicators worthy of investigation. Existing literature shows that world oil prices play an important role in the appreciation of the exchange rates of oil-exporting developing countries. However, only a few studies have examined this issue by considering all three oil-exporting countries of the Commonwealth Independent States, namely Azerbaijan, Kazakhstan and Russia, together. In order to fill this gap and given the increasing importance of these economies in the world’s energy markets, this paper examines the role of oil prices in the movement of real effective exchange rates of the above-mentioned CIS countries. We applied the autoregressive distributed lag bounds testing method with a small sample bias correction to the data of these countries over the 2004Q1–2013Q4 period. The estimation results indicate that oil prices are certainly a main driver behind real effective exchange rate appreciation in the selected economies. Moreover, estimations show that productivity, to some extent, can also lead to the appreciation. The policy implication of this research is that an appreciation of the real exchange rate is harmful for the exports of non-oil goods and services in these countries. Since oil prices lead to the appreciation mainly through higher domestic prices, which is a result of tremendous public spending, decision-makers should reconsider the prevailing fiscal policy to make it much more counter-cyclical.
      PubDate: 2017-04-19
      DOI: 10.3390/economies5020013
      Issue No: Vol. 5, No. 2 (2017)
  • Economies, Vol. 5, Pages 14: Fréchet Distribution Applied to Salary
           Incomes in Spain from 1999 to 2014. An Engineering Approach to Changes in
           Salaries’ Distribution

    • Authors: Santiago Pindado, Carlos Pindado, Javier Cubas
      First page: 14
      Abstract: The official data in relation to salaries paid in Spain from 1999 to 2014 has been analyzed. The inadequate data format does not reflect the whole salary distribution. Fréchet distributions have been fitted to the data. This simple distribution has similar accuracy in relation to the data when compared to other distributions (Log-Normal, Gamma, Dagum, GB2). Analysis of the data through the fitted Fréchet distributions reveals a tendency towards more balanced (i.e., less skewed) salary distributions from 2002 to 2014 in Spain.
      PubDate: 2017-05-01
      DOI: 10.3390/economies5020014
      Issue No: Vol. 5, No. 2 (2017)
  • Economies, Vol. 5, Pages 15: Sources of Economic Growth in Zambia,
           1970–2013: A Growth Accounting Approach

    • Authors: Kelvin Mulungu, John Ng’ombe
      First page: 15
      Abstract: Most empirical work on sources of economic growth for different countries lack country-specific empirical evidence to guide policy choices in individual developing countries and previous studies of factor productivity tend to focus on the entire economy or a single sector. This provides fewer insights about a country’s structural evolution. Unlike previous studies, our study builds on this by taking a more comprehensive approach in estimating Zambia’s sources of economic growth by sectors—agriculture, industry, and service—in a systematic manner that yields insights into the country’s sources of structural transformation. We use recently developed growth accounting tools to explicitly determine sources of economic growth at both national and sectoral levels in Zambia between 1970 and 2013. We use data from World Development Indicators and Zambia’s Central Statistical Office. Results indicate that, on average, total factor productivity (TFP) contributes about 5.7% to economic growth. Sectoral analysis shows that agriculture contributes the least to GDP and that, within each sector, factors that contribute to growth differ. Structural transformation has been slow and contributed to the observed inefficiency. We outline the implications of the observed growth and provide recommendations.
      PubDate: 2017-05-11
      DOI: 10.3390/economies5020015
      Issue No: Vol. 5, No. 2 (2017)
  • Economies, Vol. 5, Pages 16: Remittances and Household Expenditure in
           Nepal: Evidence from Cross-Section Data

    • Authors: Sridhar Thapa, Sanjaya Acharya
      First page: 16
      Abstract: This paper examines the effect of remittances on household expenditure patterns applying propensity score matching methods that allow designing and analyzing observational data and enable reducing selection bias. We use data from the Nepal Living Standards Survey 2010/2011. In general, remittance recipient households tend to spend more on consumption, health and education as compared to remittance non-receiving households. Although the findings do not clearly provide evidence of either the productive or non-productive use of remittances, expenditures on non-food investment categories, such as durable goods, health and education, are more apparent among remittance-receiving households compared to remittance non-receiving households, which signal the prospect of a sustainable long-term welfare gain among the former.
      PubDate: 2017-05-23
      DOI: 10.3390/economies5020016
      Issue No: Vol. 5, No. 2 (2017)
  • Economies, Vol. 5, Pages 17: Relationship between Institutional Factors
           and FDI Flows in Developing Countries: New Evidence from Dynamic Panel

    • Authors: Zühal Kurul, A. Yalta
      First page: 17
      Abstract: In this paper, we revisit the relation between institutional factors and foreign direct investment (FDI) inflows in developing countries by employing a dynamic panel methodology, which enables us to deal with the persistency of FDI flows and endogeneity issues. We also contribute to the literature by using various measures of institutions to identify which aspects of institutional quality affect FDI in the developing world. Our empirical findings based on 113 developing countries over the period 2002–2012 show evidence that some institutional factors matter more than others in attracting more FDI flows. We also found that the financial crisis in 2008 and 2009 had a negative impact on FDI flows.
      PubDate: 2017-05-30
      DOI: 10.3390/economies5020017
      Issue No: Vol. 5, No. 2 (2017)
  • Economies, Vol. 5, Pages 18: Economic Freedom and Income Inequality: Does
           Political Regime Matter?

    • Authors: Mahyudin Ahmad
      First page: 18
      Abstract: There is a growing literature studying the effects of economic freedom and democracy on income inequality; nevertheless, the inequality-effects of both factors are apparently studied separately. This paper revisits the income inequality-economic freedom nexus and uncovers the role of political regime in explaining the relationship. Using the latest inequality data from Standardized World Income Inequality (SWIID) version 5.0 for a sample of countries up to 115 over 1970–2014 period, and via dynamic panel GMM estimation method, an inequality model that explicitly captures the interaction effect of economic freedom and democracy is estimated. The findings demonstrate that economic freedom has positive effect on income inequality. The estimated size of inequality-increasing effects of economic freedom is substantial, ranging between 0.3% and 0.5% per annum. Nevertheless, the findings show that the freedom-induced inequality is attenuated in the presence of a democratic regime in the countries under study. Furthermore, freedom of international trade and market deregulation are shown to be the two most consistently significant liberalization policies across the baseline estimations and various sensitivity tests. The paper is concluded with some policy implications.
      PubDate: 2017-06-05
      DOI: 10.3390/economies5020018
      Issue No: Vol. 5, No. 2 (2017)
  • Economies, Vol. 5, Pages 19: Management of Oil Revenues: Has That of
           Azerbaijan Been Prudent?

    • Authors: Sarvar Gurbanov, Jeffrey Nugent, Jeyhun Mikayilov
      First page: 19
      Abstract: To help explain the common failure of oil or other natural resource exporting countries to diversify into industry, it has been common to trace this failure to real exchange rate appreciation. This has also been done in Azerbaijan. However, because Azerbaijan has devoted so much of its oil revenues to government investment, Azerbaijan provides a suitable case for examining an alternative link through government investment. This study applies the ARDL cointegration method to quarterly time series data on oil prices, government capital formation, non-oil exports and non-oil GDP to estimate the long run relationships linking oil prices to government investment expenditures and further to generation of non-oil GDP. The results show that despite the massive government investment expenditures, extremely little non-oil production of the tradable type has been generated, calling attention to the need for policy reform.
      PubDate: 2017-06-12
      DOI: 10.3390/economies5020019
      Issue No: Vol. 5, No. 2 (2017)
  • Economies, Vol. 5, Pages 20: Does FDI Really Matter to Economic Growth in

    • Authors: Yoon Choi, Jungho Baek
      First page: 20
      Abstract: The main contribution of this article is to examine the productivity spillover effects from India’s inward foreign direct investment (FDI), controlling for trade, in the framework of the cointegrated vector autoregression (CVAR). For this purpose, using the Solow residual approach the aggregate total factor productivity (TFP) in India is estimated to measure FDI-induced spillovers. The results show that the inflow of FDI to India indeed improves TFP growth through positive spillover effects. We also find that trade appears to have a detrimental effect on TFP growth in India.
      PubDate: 2017-06-12
      DOI: 10.3390/economies5020020
      Issue No: Vol. 5, No. 2 (2017)
  • Economies, Vol. 5, Pages 21: Willingness to Pay for Tourist Tax in
           Destinations: Empirical Evidence from Istanbul

    • Authors: Gurel Cetin, Zaid Alrawadieh, Mithat Dincer, Fusun Istanbullu Dincer, Dimitri Ioannides
      First page: 21
      Abstract: Revenue generated from tourism taxes constitutes an important financial resource for local governments and tourism authorities to both ensure tourism sustainability and enhance the quality of tourist experiences. In order for tourism policy makers to create an efficient and fair tax system in tourism destinations, it is crucial to understand travelers’ perceptions concerning willingness to pay (WTP), tax rates, and their optimal allocation. The objectives of this paper, therefore, are to evaluate tourism taxes as a compensation tool to cover the costs of tourism and to measure tourists’ WTP. The paper also suggests a fair allocation of tax revenues based on tourists’ perceptions. A qualitative approach was used and data were collected through semi-structured in-depth interviews with international travelers to Istanbul, Turkey. The findings suggest that tourists are more likely to pay an additional amount of tax when this is earmarked for improvements in their experiences, but they are reluctant to take on liability concerning matters relating to destination sustainability. Based on the travelers’ perceptions, the paper also identified areas that need investment to improve tourist experiences. An interesting highlight of this paper is that the majority of surveyed respondents reported that their travel decisions would not be negatively affected even if the total cost of their vacation increased by one third. The findings are expected to offer fresh and much-needed insights into tourist taxation for tourism policy makers and stakeholders.
      PubDate: 2017-06-15
      DOI: 10.3390/economies5020021
      Issue No: Vol. 5, No. 2 (2017)
  • 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. 5, Pages 7: Financial Reforms, Financial Development, and
           Economic Growth in the Ivory Coast

    • Authors: Vassiki Sanogo, Richard Moussa
      First page: 7
      Abstract: This study investigates the relationship between financial development and economic growth in the Ivory Coast over the period from 1961 to 2014. The final goal of this research is to develop a procedure to identify the effects of financial reforms for the Ivory Coast economic growth. Therefore, to achieve this goal, we first conducted a common component analysis (CCA) on our time series data to create: (1) a variable that would be the most appropriate proxy for the financial development; and (2) a vector of control variables for economic growth. Second, a vector autoregression model (VAR) with restriction was used as an appropriate specification of the dynamic relationship between the proxy of financial development, economic growth and other important factors of that growth (vector of control variables). Results suggest that in the Ivory Coast, growth in financial development is synonymous with the overall economic growth of the national economy. This study addresses the controversy over the appropriate proxy for the financial development in the Ivory Coast and it establishes a causal relationship between the financial development and the national economic growth.
      PubDate: 2017-02-24
      DOI: 10.3390/economies5010007
      Issue No: Vol. 5, No. 1 (2017)
  • Economies, Vol. 5, Pages 8: The Impact of Foreign Direct Investment (FDI)
           on the Environment: Market Perspectives and Evidence from China

    • Authors: Jiajia Zheng, Pengfei Sheng
      First page: 8
      Abstract: Foreign direct investment (FDI) may have a positive effect on the level of pollution in host countries, as described by the pollution haven hypothesis (PHH). However, this kind of effect may depend on the economic conditions in host countries. In this study, we conduct research on the FDI’s effect on China’s CO2 emissions during the market-oriented reform. The results are as follows. Firstly, FDI directly promotes China’s CO2 emissions. Secondly, with market-oriented reform, this positive effect from FDI is lowering year by year, which indicates that the market-oriented reform could alleviate the positive effect of FDI on China’s CO2 emissions. Thirdly, as China’s market-oriented reform was implemented gradually from experimental zones to the whole country, regional market development is uneven, and as such so is FDI’s effect on local CO2 emissions. Provinces in the eastern area generally evidenced higher market development and lower CO2 emissions from FDI, while four provinces in west area evidenced both lower market development and higher CO2 emissions from FDI.
      PubDate: 2017-03-06
      DOI: 10.3390/economies5010008
      Issue No: Vol. 5, No. 1 (2017)
  • Economies, Vol. 5, Pages 9: (Un)supported Current Tourism Development in
           UNESCO Protected Site: The Case of Old City of Dubrovnik

    • Authors: Ivana Pavlić, Ana Portolan, Barbara Puh
      First page: 9
      Abstract: The main purpose of this paper is to explore and determine perceptions of residents living in the United Nations Educational, Scientific and Cultural Organization (UNESCO) protected site Old City of Dubrovnik (OCD) towards tourism development. Uncontrolled tourism expansion has impact on local residents’ life and on their (un)support for specific form of tourism development. Comprehension of residents’ perceptions is crucial for realization of adequate tourism development and for mutual satisfaction of tourism demand and supply. Therefore, the aim is to test the model of residents’ perceptions of economic, socio-cultural and environmental impacts of tourism on their (un)support for specific form of tourism development. To realize the purpose of this research, Cronbach alpha, explorative (EFC) and confirmatory (CFA) factor analysis, and structural equation modeling (SEM) were applied. The findings indicate that there is a direct relationship between residents who perceive positive and negative economic, socio-cultural and environmental impacts of tourism and their (un)support for tourism development. This paper points out the role and significance of the permanent residents’ perceptions research concerning the issues that are related to the quality tourism development due to the high interaction between local residents, tourists and local tourism development especially in the areas under the protection of UNESCO.
      PubDate: 2017-03-07
      DOI: 10.3390/economies5010009
      Issue No: Vol. 5, No. 1 (2017)
  • Economies, Vol. 5, Pages 10: The Status and Evolution of Energy Supply and
           Use in Mexico Prior to the 2014 Energy Reform: An Input-Output Approach

    • Authors: Zeus Guevara, Oscar Córdoba, Edith García, Rafael Bouchain
      First page: 10
      Abstract: In 2014, the Mexican government approved a bold energy reform that allows private energy companies to freely participate in the energy market (something prohibited during the previous eight decades). This reform is expected to significantly restructure the energy sector and boost and diversify the energy production. Moreover, changes in the energy sector and production might lead to structural changes in the rest of the economy and ultimately generate significant economic benefits for the country. Nevertheless, the fundamental role of the energy sector in this oil producing country makes the potential impacts of the reform complex to forecast. The objective of the study is to analyze the current state, evolution, and driving factors of the total primary energy use in Mexico in 2003–2012 (prior to the implementation of the reform) as a precedent for future analyses of impacts of the energy reform. The results show three driving factors of the evolution of primary energy use: final non-energy demand, direct energy intensity, and economic structure. Also, it was found that the energy sector has been in a precarious situation regarding its structure and efficiency. However, this situation had a small effect on the evolution of primary energy use.
      PubDate: 2017-03-21
      DOI: 10.3390/economies5010010
      Issue No: Vol. 5, No. 1 (2017)
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