scholarly journals Does political instability lead to higher and more volatile inflation?: A panel data analysis

2007 ◽  
Vol 54 (1) ◽  
pp. 5-27 ◽  
Author(s):  
Ari Aisen ◽  
Francisco Veiga
Keyword(s):  
Panel Data ◽  
Political Instability ◽  
Panel Data Analysis ◽  
Policy Implications ◽  
Price Stability ◽  
The Political ◽  
Inflation Rates ◽  
Inflation Stabilization ◽  
Paper Advance ◽  
Important Challenge

Economists generally accept the proposition that high and volatile inflation rates generate inefficiencies that reduce society?s welfare. Furthermore studies have shown that inflation is harmful to economic growth. However determining the causes of the worldwide diversity of inflationary experiences is an important challenge not yet satisfactorily confronted by the profession. Based on a broad dataset covering over 100 countries for the period 1975-1997 and using dynamic and static panel data econometric techniques, this paper shows that a higher degree of political instability is associated with both higher inflation levels and volatility. Not only does this paper advance the political economy literature establishing a relationship between inflation moments and political instability, but it also has important policy implications regarding the optimal design of inflation stabilization programs and of the institutions favorable to price stability.

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

Economies ◽  
2021 ◽  
Vol 9 (1) ◽  
pp. 20
Author(s):  
Osama Alhendi ◽  
József Tóth ◽  
Péter Lengyel ◽  
Péter Balogh
Keyword(s):  
Panel Data ◽  
Cultural Diversity ◽  
English Language ◽  
Panel Data Analysis ◽  
Dynamic Panel Data ◽  
Policy Implications ◽  
Social Tolerance ◽  
Solow Model ◽  
Related Equation ◽  
The Impact

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

scholarly journals Economic Development and Environmental Degradation in Indonesia: Panel Data Analysis

2021 ◽  
Vol 22 (2) ◽  
pp. Layouting
Author(s):  
M Irsyad Ilham
Keyword(s):  
Economic Development ◽  
Data Analysis ◽  
Panel Data ◽  
Population Density ◽  
Cross Section ◽  
Environmental Degradation ◽  
Environmental Quality ◽  
Panel Data Analysis ◽  
Policy Implications ◽  
Environmental Damage

This study analyzed the relationship of economic development, population density, and the number of vehicles on environmental degradation from 31 provinces in Indonesia for the period 2011-2019. Panel data analysis, which is widely used to examine issues that could not be studied in either cross-section or time-series alone, is used herein. The empirical results support the hypothesis on the direction of causality from those three factors of environmental damage in the country. The results concluded that economic development, population density, and the number of vehicles impacted on environmental degradation in Indonesia. The smallest cross-section random effect indicates the lowest environmental quality when all factors are fixed. The empirical findings provide important policy implications for Indonesia and it will direct its economic development model towards a green economic one. On the other hand, the growth of the population should be equalized with growth in human development. The distribution of population should be equalized among provinces by opening a new economic cluster to supply new work-fields. In addition, it should be for the country to create a more-educated population in order to protect environmental quality. Despite the unstoppable growth of vehicles, the government should implement the development of eco-friendly combustion technology besides reducing fuel consumption. Moreover, the road-making by plastic-based material can be considered to prevent land damage from plastic waste and might also recycle plastics which has caused pollution in Indonesia.

scholarly journals The political regime as a determinant of inward foreign direct investment

2020 ◽  
Author(s):  
Ειρήνη Τριάρχη
Keyword(s):  
Foreign Direct Investment ◽  
Data Analysis ◽  
Panel Data ◽  
Direct Investment ◽  
Panel Data Analysis ◽  
Political Regime ◽  
The Political ◽  
Inward Foreign Direct Investment

H εν λόγω διατριβή αναλύει το πολιτικό καθεστώς ως καθοριστικό παράγοντα των εισερχομένων Άμεσων Ξένων Επενδύσεων (ΑΞΕ). Πάνω απ’ όλα, εξετάζει τη σημασία του πολιτικού συστήματος μαζί με συγκεκριμένους παράγοντες για την τόνωση των εισροών ΑΞΕ στις Ευρωπαϊκές υπό μετάβαση οικονομίες. Η έρευνα μας επικεντρώνεται σε εκείνες τις χώρες της Βαλκανικής χερσονήσου που δεν είναι μέλη της ΕΕ, συγκεκριμένα στις χώρες των Δυτικών Βαλκανίων της Αλβανίας, της Βοσνίας-Ερζεγοβίνης, του Κοσσυφοπεδίου, της Βόρειας Μακεδονίας, της Σερβίας και του Μαυροβουνίου. Το θεωρητικό πλαίσιο της διατριβής δίδεται από την βιβλιογραφική επισκόπηση. Η βιβλιογραφική επισκόπηση διακρίνει συγκεκριμένους παράγοντες που συμβάλλουν στη θεσμική σταθερότητα και αξιοπιστία των χωρών υποδοχής και ως εκ τούτου, στην αύξηση των εισροών ΑΞΕ. Αυτοί είναι η προστασία των δικαιωμάτων ιδιοκτησίας, η υπογραφή διμερών επενδυτικών συνθηκών, τα ανθρώπινα δικαιώματα και η ποιότητα της διακυβέρνησης, συμπεριλαμβανομένων των έξι διαστάσεων της, ήτοι φωνή και λογοδοσία, πολιτική σταθερότητα και απουσία της βίας / τρομοκρατίας, κυβερνητική αποτελεσματικότητα, κανονιστική ποιότητα, κράτος δικαίου και έλεγχος της διαφθοράς. Η θεωρητική ανάλυση του πολιτικού συστήματος στις χώρες των Δυτικών Βαλκανίων βασίζεται, πέρα από τις εμπειρικές μελέτες, σε επίσημες εκθέσεις διεθνών αναγνωρισμένων οργανισμών και μελέτες πολιτικής σχετικά με το καθεστώς μετάβασης των χωρών. Ο σχεδιασμός του εμπειρικού μοντέλου της έρευνας περιλαμβάνει τις μεταβλητές που σχετίζονται με την προστασία των ξένων επενδυτών και μετρά την ποιότητα της διακυβέρνησης μαζί με τη μεταβλητή του πολιτικού καθεστώτος. Η εμπειρική ανάλυση χρησιμοποιεί panel data analysis των μεταβλητών ενδιαφέροντος για την περίοδο 1996-2018, για το σύνολο των έξι χώρων. Δεδομένου ότι οι ευρωπαϊκές υπό μετάβαση οικονομίες βιώνουν μια νέα πολιτική πραγματικότητα, με την μελέτη των ειδικών καθοριστικών πολιτικών παραγόντων των εισερχομένων ΑΞΕ όπως διαμορφώνονται στο πολιτικό περιβάλλον των συγκεκριμένων χωρών, αναμένεται η εξαγωγή σαφών αποτελεσμάτων. Τα ευρήματα αυτής της διατριβής ρίχνουν περισσότερο φως στη σχέση πολιτικού συστήματος - ΑΞΕ, συμβάλλοντας στην υπάρχουσα βιβλιογραφία και παρέχοντας ένα πλαίσιο για τις οικονομίες μετάβασης να ξεπεράσουν συγκεκριμένα πολιτικά ζητήματα που εμποδίζουν την αύξηση των εισερχόμενων ροών ΑΞΕ και να αναπτυχθούν ως προορισμοί ΑΞΕ.

scholarly journals Adoption analysis of agricultural technologies in the semiarid northern Ethiopia: a panel data analysis

2021 ◽  
Vol 9 (1) ◽  
Author(s):  
Menasbo Gebru ◽  
Stein T. Holden ◽  
Frode Alfnes
Keyword(s):  
Panel Data ◽  
Panel Data Analysis ◽  
Total Sample ◽  
Policy Implications ◽  
Northern Ethiopia ◽  
Tigray Region ◽  
New Crops ◽  
Drought Tolerant ◽  
Cash Crops ◽  
The Government

AbstractAgricultural technology change is required in developing countries to increase the robustness to climate-related variability, feed a growing population, and create opportunities for market-oriented production. This study investigates technological change in the form of adoption of improved wheat, drought-tolerant teff, and cash crops in the semiarid Tigray region in northern Ethiopia. We analyze three rounds of panel data collected from smallholder farms in 2005/2006, 2009/2010, and 2014/2015 with a total sample of 1269 households. Double-hurdle models are used to assess how the likelihood (first hurdle) and intensity of technology adoption (second hurdle) are affected by demographic, weather, and market factors. The results indicate that few smallholders have adopted the new crops; those that have adopted the crops only plant small shares of their land with the new crops, and that there has been only a small increase in adoption over the 10-year period. Furthermore, we found that high population density is positively associated with the adoption of improved wheat, and previous period’s rainfall is positively associated with the adoption of drought-tolerant teff. The adoption of cash crops is positively associated with landholding size and access to irrigation. The policy implications of these results are that the government should increase the improved wheat diffusion efforts in less dense population areas, make sure that drought-tolerant teff seed is available and affordable after droughts, and promote irrigation infrastructure for production of cash crops.

scholarly journals The Determinants of Capital Structure of the Chemical Industry in Pakistan

2008 ◽  
Vol 13 (1) ◽  
pp. 139-158 ◽  
Author(s):  
Muhammad Rafiq ◽  
Asif Iqbal ◽  
Muhammad Atiq
Keyword(s):  
Data Analysis ◽  
Panel Data ◽  
Capital Structure ◽  
Chemical Industry ◽  
Panel Data Analysis ◽  
Policy Implications ◽  
Listed Firms ◽  
Independent Variables ◽  
Tax Shield ◽  
Debt Tax Shield

This study is an attempt to determine the capital structure of listed firms in the chemical industry of Pakistan. The study finds that by studying a specific industry's capital structure, one can ascertain unique attributes, which are usually not apparent in the combined analysis of many sectors as done by Shah and Hijazi (2004). This study analyzed 26 of 39 firms in the chemical sector, listed at the Karachi Stack Exchange for the period 1993-2004 using pooled regression in a panel data analysis. Six regressors i.e. firm size, tangibility of assets, profitability, income variation, non-debt tax shield (NDTS) and growth were employed to examine their effects on leverage. The results show that these six independent variables explain 90% of variation in the dependent variable and, except for firm tangibility, results were found to be highly significant. The study has policy implications of importance for researchers, investors, analysts and managers.

scholarly journals IMPLICATIONS OF CAPITAL FLOWS FOR DOMESTIC CREDIT GROWTH: EVIDENCE FROM PANEL DATA ANALYSIS

2020 ◽  
Vol 8 (4) ◽  
pp. 231-245
Author(s):  
Aylin Soydan ◽  
◽  
Serap Bedir Kara ◽  
Keyword(s):  
Developing Countries ◽  
Data Analysis ◽  
Panel Data ◽  
Capital Flows ◽  
Panel Data Analysis ◽  
Capital Inflows ◽  
Policy Implications ◽  
Credit Growth ◽  
Credit Creation ◽  
The Impact

Following the 2007-2009 global crisis, high credit growth became an issue of concern with an emphasis on its relationship with capital flows. It is argued that large and volatile international capital flows lead to credit expansion, which in turn, may cause economic and financial instabilities when it reaches excessive levels, particularly in developing countries. This paper aims to investigate the association between credit growth and capital inflows in the context of developing countries by using panel data analysis. The methodology employed in the study offers a number advantages by allowing for heterogeneity and cross-sectional dependence in the panel, while also considering the endogeneity issue. The overall results of the study provides evidence for the impact of capital inflows, more particularly other capital inflows, on credit growth in the sample. This finding suggests a more direct relationship between capital inflows and credit creation as other inflows mostly comprise international banking and trade credits. It is not surprising given the fact that banking sector has a critical role in the financial systems of developing countries. The significance of international dimension for credit creation through other capital inflows and the intermediary role of the banking system should have monetary policy implications, in the macroprudential or more conventional fashion.

scholarly journals Primary commodity export and economic growth in sub sahara africa: evidence from panel data analysis

2011 ◽  
Vol 11 (4) ◽  
pp. 465-474 ◽  
Author(s):  
Matthew Ocran ◽  
Nicholas Biekpe
Keyword(s):  
Economic Growth ◽  
Panel Data ◽  
Fixed Effects ◽  
Panel Data Analysis ◽  
Negative Relationship ◽  
Policy Implications ◽  
Sub Saharan Africa ◽  
Primary Commodity ◽  
Commodity Export ◽  
The Impact

The paper sought to examine the impact of instability in primary commodity export earnings and the level of commodity dependence on economic growth in Sub Saharan Africa (SSA).  Fixed effects panel data estimator was used in the empirical estimation. The findings of the study suggest that there is a negative relationship between instability in export earnings and economic growth. The results also indicate that the level of commodity dependence matter in determining economic growth in the region. The results of the paper have economic development policy implications for SSA economies and these are not farfetched. First, it appears the difficult growth experience of SSA is not solely due to instability in export receipts. The question of continued dependence on a narrow range of primary commodities is also matter of great importance.

Modelling international tourism flows to China: A panel data analysis with the gravity model

2018 ◽  
Vol 25 (7) ◽  
pp. 1047-1069 ◽  
Author(s):  
Lizhi Xu ◽  
Shouyang Wang ◽  
Jingjing Li ◽  
Ling Tang ◽  
Yanmin Shao
Keyword(s):  
Panel Data ◽  
Gravity Model ◽  
Panel Data Analysis ◽  
Policy Implications ◽  
Social Culture ◽  
Data Set ◽  
Ethnic Chinese ◽  
International Tourist ◽  
Processing Centre ◽  
Tourism Flows

Based on the theoretical and empirical foundations of the gravity model, this article systematically investigates the determinants of international tourist arrivals to China. Various origin–destination (O-D) linked factors accounting for the economic, political and social/culture preferences between China and its tourist origins are particularly explored. Utilizing a panel data set of tourist arrivals to China from 21 countries from 1995 to 2014, the results suggest that the basic gravity determinants all have significant effects on tourist arrivals to China. Furthermore, four O-D linked factors are found to be significant in explaining the number of international tourists and have a greater tourist-enhancing effect. In particular, overseas Chinese, proxying for social/culture-preferential relationships, have caused significant increases in tourism arrivals to China of approximately 120% when the percentage of ethnic Chinese in the origin countries’ population is more than 1%. For China to be chosen as a manufacturing and processing centre by international enterprises, various O-D relationships are important but neglected factors of Chinese tourism patterns, with important policy implications.

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