An Empirical Analysis of Differences in GDP per Capita and the Role of Human Capital

2010 ◽  
Vol 24 (2) ◽  
pp. 101-107
Author(s):  
George Sfakianakis ◽  
Anastasios I. Magoutas ◽  
Demosthenes Georgopoulos
Keyword(s):  
Capital Accumulation ◽  
Physical Capital ◽  
The Public ◽  
Panel Data Estimation ◽  
Production Function Approach ◽  
Panel Data Estimation Techniques ◽  
Specific Factors ◽  
Per Capita ◽  
Data Estimation

Using a generalized production function approach and insights from empirical research on the determinants of growth, this paper assesses the relative importance of specific factors in explaining differences in the levels of per capita GDP. Emphasis is placed on education, physical capital accumulation, the share of the public sector in economic activity and the outward orientation of economies. Education, among other things, is connected with the ability of countries to take advantage of technology transfer channels. Panel data estimation techniques are used to obtain empirical results for the EU-15 countries, and economic policy recommendations are evaluated accordingly.

Physical capital stock, technological upgrading and modernisation in Hungary

2005 ◽  
Vol 55 (2) ◽  
pp. 201-221 ◽  
Author(s):  
Andrea Szalavetz
Keyword(s):  
Capital Accumulation ◽  
Physical Capital ◽  
Developed Countries ◽  
Point Of View ◽  
Technology Generation ◽  
Development Policies ◽  
Specific Factors ◽  
Physical Capital Accumulation

This paper discusses the relation between the quality and quantity indicators of physical capital and modernisation. While international academic literature emphasises the role of intangible factors enabling technology generation and absorption rather than that of physical capital accumulation, this paper argues that the quantity and quality of physical capital are important modernisation factors, particularly in the case of small, undercapitalised countries that recently integrated into the world economy. The paper shows that in Hungary, as opposed to developed countries, the technological upgrading of capital assets was not necessarily accompanied by the upgrading of human capital i.e. the thesis of capital skill complementarity did not apply to the first decade of transformation and capital accumulation in Hungary. Finally, the paper shows that there are large differences between the average technological levels of individual industries. The dualism of the Hungarian economy, which is also manifest in terms of differences in the size of individual industries' technological gaps, is a disadvantage from the point of view of competitiveness. The increasing differences in the size of the technological gaps can be explained not only with industry-specific factors, but also with the weakness of technology and regional development policies, as well as with institutional deficiencies.

Infrastructure and Tourism Development

2017 ◽  
pp. 224-237
Author(s):  
Sourav Kumar Das ◽  
Tonmoy Chatterjee
Keyword(s):  
Tourism Development ◽  
Economic Reforms ◽  
Infrastructure Development ◽  
Indian States ◽  
Resource Potential ◽  
Panel Data Estimation ◽  
Panel Data Estimation Techniques ◽  
The Common ◽  
Data Estimation ◽  
Budgetary Allocation

Infrastructure is not the engine but the wheels of economic development. Since the onset of economic crisis, followed by economic reforms, the importance of infrastructure development has been emphasised through policy, pronouncements, higher budgetary allocation of funds, formation of Infrastructure development, etc. It opens out a region by providing an access to its tourist places. In its absence, the resource potential for tourism can't be of any benefit. In addition to the common infrastructure tourism development requires special infrastructures, which is growing importance to India and foreign tourists in recent years. This chapter tries to investigate the significance of infrastructure as a factor in tourism development by applying panel data estimation techniques upon 27 Indian States for the period 2005-2015 and finds that the infrastructure has been contributing positively to tourist arrivals, particularly from India and abroad. Apart from this we have also shown that tourist arrivals from host along with infrastructure expenditure will affect Indian tourism in a positive manner.

scholarly journals Explaining Tourism Inflows in Greece: A Macroeconometric Approach

2016 ◽  
Vol 8 (4) ◽  
pp. 192 ◽  
Author(s):  
George Agiomirgianakis ◽  
George Sfakianakis
Keyword(s):  
Cross Sections ◽  
Model Fit ◽  
Relative Price ◽  
Explanatory Variables ◽  
Panel Data Estimation ◽  
Panel Data Estimation Techniques ◽  
Macroeconomic Indicators ◽  
Greek Economy ◽  
Disaggregated Data ◽  
Data Estimation

This paper investigates the determinants of tourism inflows to Greece. The significance of the specific sector for the Greek economy varies from 15% to 20% of GDP (measured directly or indirectly respectively). Building on the existing literature, panel data estimation techniques are used, with explanatory variables including selected macroeconomic indicators and (relative) price indices. The main innovation of the paper is that, regarding the cross section dimension of the sample, disaggregated data based on the country (or area) of origin are used, combined with the corresponding macroeconomic aggregates. The time-span of the data is the 2004-2010 period, with the specific econometric techniques used taking into account both the statistical properties of variables and the differences between the various cross sections. The main conclusion of the paper is that the macroeconometric approach to explaining tourist arrivals provides a very satisfactory model fit, with explanatory variables explaining a significant part of the variability of the dependent variable.

scholarly journals Economic Effects of Using Nepotism and Cronyism in the Employment Process in the Public Sector Institutions

2016 ◽  
Vol 8 (1) ◽  
pp. 58 ◽  
Author(s):  
Taha Barakat AL-shawawreh
Keyword(s):  
Public Sector ◽  
National Culture ◽  
Unethical Behavior ◽  
Arab Countries ◽  
Economic Effects ◽  
The Public ◽  
Per Capita ◽  
The Government ◽  
Service Lead

<p>This study aims to discern the role of nepotism and cronyism in the weakening of economic<br />performance of the government institutions through exposure to this practice in the three<br />Arab Countries; Iraq, Saudi Arabia, and Jordan, The study relied on the analysis of what was<br />stated in the related literature which illustrate the effect of using nepotism and Cronyism in<br />the employment process in a governmental position, to result in a slowdown and stumbled in<br />the delivery of government services to citizens. After analyzing how the practice of nepotism<br />and cronyism in the three countries, the study found the following results:<br /> Nepotism and cronyism are practiced not only in developing countries, but also in<br />advanced countries.<br /> Using nepotism and cronyism in employment process is unethical behavior.<br /> The use of nepotism and cronyism in the public sector is much more than private sector.<br /> Nepotism and cronyism can be considered as a part of the national culture in Arab<br />countries.<br /> Nepotism and cronyism have negative economic repercussions, both at the level of the<br />national economy, or the per capita income level. Because the salaries paid to staff<br />recruited through them considered as a burden on the state treasury. Also, the large<br />number of times to visit the citizen government department, to get the same service, lead<br />to the loss of his income as a transition expenses.<br /> Nepotism and cronyism are from reasons of administrative corruption in the studied<br />countries.</p>

scholarly journals The Dynamic Effects of Innovation, FDI, & Trade Liberalization on Services Sector: An Evidence from Developed and Developing Economies

2020 ◽  
Vol 8 (2) ◽  
pp. 116-132
Author(s):  
Muhammad Chishti ◽  
◽  
Farrukh Mehmood ◽  
Keyword(s):  
Trade Liberalization ◽  
Developing Economies ◽  
Trade Openness ◽  
Dynamic Panel Data ◽  
Dynamic Effects ◽  
Services Sector ◽  
Panel Data Estimation ◽  
Productivity Differential ◽  
Data Estimation

The current study is a bid to explore the dynamic effects of Innovation, FDI, and trade openness on services sector in selected developed and developing economies for the period of 1992 to 2016. For computing the empirical findings, this study deploys the static as we all dynamic panel data estimation approaches. The results reveal the significant role of GDP per capita and FDI in the growth of services sector. However, the services sector incurs the detrimental repercussions on the account of trade liberalization. These findings also demonstrate that, in both samples of economies, the services sector does not respond to the productivity differential. Furthermore, innovation exhibits a significant association with the growth of services sector in the case of developing economies.

scholarly journals Corruption, Public Expenditure and Human Capital Accumulation

2016 ◽  
Vol 8 (1) ◽  
pp. 17-45
Author(s):  
Spyridon Boikos
Keyword(s):  
Human Capital ◽  
Capital Accumulation ◽  
Capital Investment ◽  
Public Expenditure ◽  
Parametric Method ◽  
Physical Capital ◽  
Human Capital Accumulation ◽  
Linear Effect ◽  
The Public ◽  
The Impact

This paper investigates the possible non-linear effect of corruption on human capital accumulation through two channels. The first channel is through the effect of corruption on the public expenditure on education and the second channel is through the effect of corruption on the physical capital investment. Initially, we construct an endogenous two-sector growth model with human capital accumulation and we try to explore the impact of corruption on the allocation of public expenditure and therefore on the distribution of human capital across sectors. Then by using a semi-parametric method, we confirm the presence of non-linearities between human capital and corruption.

Capital accumulation and growth in Hungary, 1924–2006

2011 ◽  
Vol 61 (2) ◽  
pp. 143-164 ◽  
Author(s):  
B. Leeuwen ◽  
P. Földvári
Keyword(s):  
Economic Growth ◽  
Human Capital ◽  
Capital Accumulation ◽  
Physical Capital ◽  
Volume Index ◽  
Growth Accounting ◽  
Simple Method ◽  
Long Run ◽  
Over Time

The objective of this paper is to analyse the role of both human and physical capital in economic growth in Hungary during the 20th century by extending the already available data on physical and human capital. Besides the standard measure for the volume of human capital, we develop a simple method to estimate the value of the human capital stock in Hungary between 1924 and 2006. While the volume index slowly grows over time, the value of human capital shows a decline during the late socialist period. Applying the value of human capital in a growth accounting analysis, we find that the Solow residual has no long-run effect on economic growth anymore.

scholarly journals The Role of Institutional Quality on Participation in Global Value Chains

2020 ◽  
Author(s):  
Javier Barbero ◽  
Ernesto Rodríguez-Crespo
Keyword(s):  
Panel Data ◽  
Rule Of Law ◽  
Institutional Quality ◽  
Positive Association ◽  
Political Stability ◽  
Global Value Chains ◽  
Value Chains ◽  
Panel Data Estimation ◽  
Data Estimation

We explore the effect of institutional quality on participation in global value chains (GVCs) by distinguishing between backward and forward participation. Using a sample of 63 OECD and non-OECD countries during the period 2005–2015, the results obtained from a panel data estimation are twofold. First, we obtain a positive association between institutional quality and participation in GVCs, with slightly greater effects for backward than for forward participation. Second, we find that results are sensitive to the dimension of the institutions considered, with Voice and Accountability being associated with more backward participation, and Rule of Law and Political Stability with more forward participation

scholarly journals Bank stability in South Africa: what matters?

2019 ◽  
Vol 14 (1) ◽  
pp. 122-136
Author(s):  
Syden Mishi ◽  
Sibanisezwe Alwyn Khumalo
Keyword(s):  
South African ◽  
Business Models ◽  
Banking Sector ◽  
Financial Sector ◽  
The South ◽  
Bank Stability ◽  
Panel Data Estimation ◽  
Panel Data Estimation Techniques ◽  
Lending Activity ◽  
Data Estimation

The study examined the determinants of bank stability within the South African banking sector. By controlling for individual bank characteristics and market characteristics, the study determined possible determinants of solvency, a proxy for bank stability, measured by z-score within the South African financial sector. The South African financial sector is highly concentrated but with a significantly large number of banks, the greater portion being foreign owned banks. The business models of some of the financial intermediaries differ from the big four and therefore the influence of the type of business model is of great interest in this study, as it highlights a unique feature of the South African financial sector. The study’s investigation used panel data estimation techniques and found that among the specific bank characteristics, lending activity and capitalization do significantly affect solvency of banks and at sector level concentration was significant. The crisis dummy also revealed that the presence of a financial crisis heightened insolvency. The results have implications for financial institutions and therefore are of interest to regulators, bank management and researchers. Policy prescription in the form of Prompt Corrective Action framework is made to ensure proactive reaction to trends likely to cause instability.

scholarly journals The effect of democracy on income: An analysis of countries affected by coups d’état

2020 ◽  
pp. 18-18
Author(s):  
Ozan Saray
Keyword(s):  
Capita Income ◽  
National Income ◽  
Per Capita Income ◽  
Panel Data Estimation ◽  
Definite Effect ◽  
Per Capita ◽  
The Impact ◽  
Coups D'etat ◽  
Data Estimation ◽  
Positive Effect

Although there is a considerable amount of study which examines the effect of democracy on national income, a limited number of papers analyses the effect of democracy on per capita income. The main objective of this research is to show the effect of democracy level on per capita income among new sample, 21 countries which share a similar coup d??tat experience in their political history, to fulfil the gap in the literature. The countries selected are from different continents and are those most affected by coups. The impact of two different democracy indicators (Freedom House and Polity IV) on the per capita income of the countries in the period 2000-2014 is analysed. The results of the panel data estimation show that, an increase in democracy level has a positive effect on per capita income for both democracy indicators. As expected, the effect of the investment, secularism and education variables on income is positive, whereas the effect of population growth rate is negative. And trade has no definite effect on per capita income.

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