scholarly journals Green Energies, Employment, and Institutional Quality: Some Evidence for the OECD

2021 ◽  
Vol 13 (6) ◽  
pp. 3252
Author(s):  
Luigi Aldieri ◽  
Cristian Barra ◽  
Nazzareno Ruggiero ◽  
Concetto Paolo Vinci
Keyword(s):  
Financial Crisis ◽  
Fixed Effects ◽  
Institutional Quality ◽  
Oecd Countries ◽  
Quality Of Institutions ◽  
Fixed Effects Regression ◽  
The Impact ◽  
The Relationship

Using a sample of 19 OECD countries over the 1985–2011 period, we propose the application of fixed effects regression to appraise the impact of green energies on employment and to assess how the quality of institutions shapes the relationship. The evidence reported in this paper indicates that higher supply of green energies enhances employment, though the effect is crucially mediated by the quality of institutions, depending on the measure of institutional quality employed. Further, the relationship remains stable under both Kyoto agreements and the 2007 financial crisis.

scholarly journals The Impact of the Technological Capability of a Host Country on Inward FDI in OECD Countries: The Moderating Roles of Institutional Quality

2020 ◽  
Vol 12 (22) ◽  
pp. 9711
Author(s):  
Seunghyun Kim ◽  
Byungchul Choi
Keyword(s):  
Host Country ◽  
Fixed Effects ◽  
Institutional Quality ◽  
Oecd Countries ◽  
Technological Capability ◽  
Government Size ◽  
Fixed Effects Regression ◽  
The Impact ◽  
Dynamic Links

This empirical study explores the impacts of technological capability on inward foreign direct investment (FDI) with the moderations of institutional quality. We extend the existing literature by contributing the dynamic links between technology trade and institutional quality by using the panel data of 35 Organization for Economic Cooperation and Development (OECD) countries between 2000 and 2015. Based on fixed-effects regression, our results show that there is a U-shape relationship between the net technological capability of a host country and inward FDI. In addition, the institutional quality of a host country, government size and regulation have positive moderations, whereas sound money accessibility and legal system and property protection have negative moderations on the main U-shape relationship. Our study contributes to the literature on the determinants of inward FDI in the context of technological capabilities and institutional quality.

Can labor productivity growth reduce carbon emission? Evidence from OECD countries and China

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Xueli Chen ◽  
Wanshu Ma ◽  
Vivian Valdmanis
Keyword(s):  
Labor Productivity ◽  
Fixed Effects ◽  
Oecd Countries ◽  
Environmental Indicators ◽  
Ekc Hypothesis ◽  
Initial Development ◽  
Content Type ◽  
Per Capita ◽  
The Impact ◽  
The Relationship

PurposeThe purpose of this study is to examine the challenges involved in the trade-offs of labor productivity and per capita carbon dioxide (CO2) emission.Design/methodology/approachIn this research, we used a balanced dataset of 36 OECD countries and China between 1990 and 2018. We examined the relationship between labor productivity and per capita CO2 emission for OECD countries and China based on an Environmental Kuznets Curve (EKC) hypothesis. Further, the fixed effects model of estimation was employed to examine the impact of variables during the sample period and explore the relationship between predictor and outcome variables within an entity while controlling for all time-invariant differences.FindingsThis study confirmed the existence of the N-shape EKC hypothesis in 36 OECD countries and China. This implies that at the initial development stage, per capita CO2 emission increased with labor productivity; however, after reaching certain threshold, per capita CO2 emission began to fall with rising labor productivity. Then the per capita CO2 emission rises again when labor productivity continually increases.Originality/valueIn this study, we explored the dynamic association between labor productivity and per capita CO2 emissions for 36 OECD countries and China under the EKC framework from 1990 to 2018 by using the labor productivity and per capita CO2 emission as economic and environmental indicators of one country respectively. This study’s contribution showed the following: first, the empirical findings confirmed the N-shape relationship between labor productivity and per capita CO2 emissions for 36 OECD countries and China; second, the findings demonstrated that the association among the underlying variables by testing through the fixed effect model.

scholarly journals Economic growth and quality of institutions in 27 postsocialist economies

2020 ◽  
Vol 47 (4) ◽  
pp. 769-787
Author(s):  
Constantinos Alexiou ◽  
Sofoklis Vogiazas ◽  
Nikita Solovev
Keyword(s):  
Economic Growth ◽  
Panel Cointegration ◽  
Institutional Quality ◽  
Supporting Evidence ◽  
Causality Analysis ◽  
Content Type ◽  
Long Run ◽  
Quality Of Institutions ◽  
The Relationship

PurposeThe relationship between institutional quality and economic growth is revisited.Design/methodology/approachA panel cointegration methodology and causality analysis are applied to 27 postsocialist economies over the period from 1996 to 2016.FindingsUtilizing the Worldwide Governance Indicators as a means of assessing the quality of institutions, it is found that in the long run, economic growth is positively associated with the rule of law and voice and accountability. In the short run, regulatory quality retains a positive effect, but voice and accountability demonstrate a puzzling negative effect on economic growth that merits further analysis. In exploring the causal dimension of our variables, supporting evidence of the strong links between the quality of institutions and economic growth is provided, hence rendering robust results.Originality/valueTo the best of the authors’ knowledge, it is the first time that an ARDL methodological framework, which addresses potential endogeneity issues, is used to investigate the relationship between institutional quality and growth in the context of postsocialist economies.

The Impact of Quality of Institutions on Sectoral FDI

2018 ◽  
Vol 53 (3) ◽  
pp. 174-188 ◽  
Author(s):  
Mohsin Hasnain Ahmad ◽  
Qazi Masood Ahmed ◽  
Zeeshan Atiq
Keyword(s):  
Institutional Quality ◽  
Integration Technique ◽  
Quality Matters ◽  
Services Sector ◽  
Long Run ◽  
Quality Of Institutions ◽  
Short Run ◽  
The Impact ◽  
Sectoral Fdi

This study addresses the issue whether institutional quality affects the sectoral FDI both in short run and long run in Pakistan. By employing ARDL co-integration technique, we analyse the impact of institutional quality on primary, manufacturing and services sectors FDI in Pakistan. The findings suggest that institutional quality matters in attracting FDI in manufacturing and services sectors in the long run while institutional quality does not have a significant impact on FDI in the primary sector. Moreover, results show that the impact of institutional quality on these sectors is not apparent in short run. The main findings from this research are that in long run institutional quality matters to attract substantial FDI in manufacturing and services sector of Pakistan. Hence, policies aimed at strengthening the institutional quality should be the priority for government. JEL: F21, O43, C22

Ideological Biases Weaken the Impact of Social Trust on Ethnic Outgroup Threat

2019 ◽  
Vol 68 (2) ◽  
pp. 523-540
Author(s):  
Jens Peter Frølund Thomsen ◽  
Arzoo Rafiqi
Keyword(s):  
Political Ideology ◽  
Fixed Effects ◽  
Social Trust ◽  
Motivated Reasoning ◽  
European Social Survey ◽  
Social Survey ◽  
Immigrants And Refugees ◽  
Fixed Effects Regression ◽  
The Impact ◽  
The Relationship

Previous studies have not examined whether (personal) political ideology influences how trusters perceive of immigrants and refugees as a threat. Our contribution to the literature builds on theories of motivated reasoning and hypothesizes that political ideology weakens the ability of social trust to reduce perceived (ethnic) outgroup threat. Indeed, analyses show that the relationship between social trust and perceived outgroup threat is considerably weaker among rightists than among leftists. Although social trust does relate negatively to perceived outgroup threat across the ideological divide, political ideology has a constraining influence that cannot be ignored. Social trust is also a political phenomenon. We apply a fixed-effects regression, and analyses are based on the 2014-European Social Survey, including 21 countries and 32,175 individuals. In the concluding section, we discuss the full implications of our findings for theories of social trust in an era of increasing flows of immigrants and refugees that go beyond the usual gateway nations.

scholarly journals Institutional quality, openness, and investment in Africa

2003 ◽  
Vol 6 (2) ◽  
pp. 346-368 ◽  
Author(s):  
Tonia Kandiero ◽  
Satish Wadhawan
Keyword(s):  
Economic Growth ◽  
Theoretical Model ◽  
Trade Liberalization ◽  
Empirical Work ◽  
Institutional Quality ◽  
Quality Of Institutions ◽  
Openness To Trade ◽  
The Impact ◽  
The Behavior Of Government

This study supports the conventional wisdom that openness to trade is good for investment and economic growth. Whether this conclusion leaves space for institutional quality as a complimentary policy to determine the success of trade liberalization in Africa is the objective of this paper. The theoretical model and empirical analysis show how the behavior of government bureaucrats can be used to explain the impact on investment of the interaction between increased openness to trade and the quality of institutions. Empirical work is conducted using panel data observed over three periods: 1985-1990, 1990-1995, and 1995-2000.

scholarly journals The impact of institutional quality on economic growth: A comparative analysis of the EU and non-EU countries of Southeast Europe

2020 ◽  
Vol 65 (225) ◽  
pp. 163-181
Author(s):  
Marija Radulovic
Keyword(s):  
Economic Growth ◽  
Institutional Quality ◽  
Political Stability ◽  
Southeast Europe ◽  
Eu Countries ◽  
Regulatory Quality ◽  
Quality Of Institutions ◽  
The Impact ◽  
The Eu

The quality of institutions and its impact on economic growth has become more important in recent years, especially in transition countries that must reform their institutions to create a market economy and meet the preconditions for joining the EU. This is the case with the countries of Southeastern Europe, some of which are already EU members, while others are in the process of joining the EU. This paper examines the effects of institutional quality on the economic growth of South- East Europe and compares these effects in EU and non-EU countries for the period 1996-2017, using Worldwide Governance Indicators (WGI) to measure the quality of institutions and the GDP growth rate. The panel autoregressive distributed lag (ARDL) approach is used to analyse the relationship between institutional quality and economic growth. The results show that in EU countries there is a long-run relationship between institutional quality and economic growth for all significant variables, while in the non-EU countries only government effectiveness, political stability and absence of violence, regulatory quality, and voice and accountability are statistically significant. Furthermore, in EU countries there is no short-run relationship between institutional quality and economic growth, while in the non-EU countries of SEE, regulatory quality and voice and accountability are significant.

scholarly journals Institutional Efficiency and Attraction of Foreign Direct Investment to Developing Countries

2019 ◽  
Vol 11 (7) ◽  
pp. 54
Author(s):  
Karima Sayari
Keyword(s):  
Developing Countries ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
Institutional Quality ◽  
Efficiency Index ◽  
Panel Data Regression ◽  
Quality Of Institutions ◽  
Institutional Efficiency ◽  
The Impact

The paper estimates the impact of institutions’ quality on the attraction of foreign direct investment (FDI) to developing countries. Data Envelopment Analysis (DEA) was used to develop a new measure of quality of institutions: Institutional Efficiency Index (IEI). In order to appraise quantitatively the effect of institutional quality on FDI entry, we used a panel data regression analysis on a dataset covering 40 countries from different developing regions for which the necessary data were accessible during the period 2011-2015. The paper argues that the institutional efficiency, as a measure of institutional quality, enhances the attractiveness of developing countries to FDI. The results of this paper suggest that FDI is mainly determined by institutional quality. A host country endowed with a high quality of institutions will be more attractive to foreign investors. In order to improve their competitiveness in term of attraction of foreign investment, developing countries should work more on providing a stable environment as well as on the transparency of policy implementation regarding the entry of multinational companies. 

GOVERNMENT SPENDING AND ECONOMIC GROWTH RELATIONSHIP: CAN A BETTER INSTITUTIONAL QUALITY FIX THE OUTCOMES?

2020 ◽  
pp. 1-23
Author(s):  
MUHAMMAD KHAN ◽  
SAQLAIN RAZA ◽  
XUAN VINH VO
Keyword(s):  
Economic Growth ◽  
Fixed Effects ◽  
Developing Economies ◽  
Public Spending ◽  
Institutional Quality ◽  
Output Growth ◽  
Long Run ◽  
Empirical Growth ◽  
The Relationship

Empirical growth literature finds conflicting results on the relationship between public spending and long-run economic growth. This paper shows that the nature of relationship between the two variables depends upon the institutional quality of a country. Our empirical investigation relies upon OLS, fixed-effects and system-GMM estimators for a large panel of 113 developed and developing economies during the period 1981–2015. The main findings confirm that the adverse impact of public size on output growth holds only for countries with poor institutional quality. By contrast, when the institutional quality exceeds certain thresholds, the growth inhibiting effects of government size become insignificant. From the fiscal policy viewpoint, these outcomes imply that the productivity of public spending is more important than an excessively large public size of the country.

Culture, institutional quality and earnings management: an international evidence

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ahmed Yamen ◽  
Cemil Kuzey ◽  
Muhammet Sait Dinc
Keyword(s):  
Earnings Management ◽  
Institutional Quality ◽  
Partial Least Square ◽  
Cultural Dimensions ◽  
Real Earnings Management ◽  
Financial Reports ◽  
Content Type ◽  
The Impact ◽  
The Relationship

PurposeThis paper examines the link between culture, institutional quality and real earnings management and accrual earnings management by combing the study by Hofstede (2001) and Enomoto et al. (2015). The paper tries to test the effect of culture on institutional quality and both real earnings management (REM) and accrual earnings management (AEM).Design/methodology/approachThe sample of the research paper includes 38 countries. Hofstede cultural dimensions are used to measure cultural values. Public governance indicators published by the World Bank are used as a proxy for measuring the institutional quality. Earning management scores constructed by Enomoto et al. (2015, p. 191) are used for measuring real earnings management (REM) and accrual earnings management (AEM). Partial Least Square (PLS) based Structural Equation Modelling (SEM) is used to test the relationship between culture, institutional quality and earnings management.FindingsThe results support the relationship between culture and institutional quality. Also, the results reveal a significant relationship between culture and accrual earnings management, but an insignificant relationship between culture and real earnings management. In addition to that, another important finding is that institutional quality has a significant impact on real earnings management, but has no significant effect on accrual earnings management.Practical implicationsThe results suggest that standard setters need to consider the quality of institutions to improve the quality of financial reports. Also, it highlights the role of both formal and informal cultures in shaping financial reports.Originality/valueFor the best of our knowledge, this the first time to test the link between culture and institutional quality and comparing the impact on both real earnings management and accrual earnings management.

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