Cross-country Evidence Research Articles

Does Bitcoin's Price Affect on the Economic Factors? Cross Country Evidence

Does Bitcoin's Price Affect on the Economic Factors? Cross Country Evidence

Do female parliamentarians improve environmental quality? Cross-country evidence

Do female parliamentarians improve environmental quality? Cross-country evidence

Customer and Supplier Returns: Cross-Country Evidence

Customer and Supplier Returns: Cross-Country Evidence

Does Mobile Payment Adoption Reduce Corruption? Cross-country Evidence

Does Mobile Payment Adoption Reduce Corruption? Cross-country Evidence

Stock market and happiness: some cross-country evidence of spillover effect and good government

Stock market and happiness: some cross-country evidence of spillover effect and good government

Stock market and happiness: some cross-country evidence of spillover effect and good government

Stock market and happiness: some cross-country evidence of spillover effect and good government

Does Structural Change Occur in Manufacturing Sectors? Cross-country Evidence with Special Reference to India

Does Structural Change Occur in Manufacturing Sectors? Cross-country Evidence with Special Reference to India

The Robust Efficiency Estimation in Lower Secondary Education: Cross-Country Evidence

In this study, we assessed the efficiency of compulsory lower secondary education. We selected three variables that may significantly affect students’ performance in a particular country. First, we assumed that student scores achieved in PISA testing determine the number of monetary funds spent on these three variables, specifically student–teacher ratio, class size, and the annual number of hours spent in school. Second, we evaluated the efficiency of education in a sample of 24 different OECD countries, comparing the students’ performance in PISA 2018. Third, we used the two-stage data envelopment analysis with a bootstrapping procedure for estimating technical efficiency scores. Finally, we applied OLS and quantile regression, where our regression estimates in both models showed a positive effect of GDP per capita on students’ achievement across countries. The positive impact of GDP per capita was significant only for the least efficient countries. Conversely, the level of impact of parental education was much stronger and more positive for the inefficient countries and proved to be negative for more efficient countries.

Determinants of Gross Savings Rate: Selected Cross-country Evidence using Panel Data Approach

Determinants of Gross Savings Rate: Selected Cross-country Evidence using Panel Data Approach

The pass-thru of excise to consumer prices of heated-not-burn tobacco (HTP) products and cigarettes: A cross-country evidence

The pass-thru of excise to consumer prices of heated-not-burn tobacco (HTP) products and cigarettes: A cross-country evidence

Monetary policy, economic uncertainty and bank risk: Cross-country evidence

This paper investigates how economic uncertainty affects the monetary policy–bank risk nexus. Using panel data on approximately 1100 public banks in 43 economies during the period of 2000–2018, we find consistent evidence that the “risk-taking channel” of monetary policy is weakened amid higher economic uncertainty. This finding is in line with the “option value of waiting” hypothesis, which suggests that economic uncertainty may induce banks to withhold their adjustments of risk-taking strategies when monetary policy is altered.

Does strong governance stimulate the effect of economic freedom and financial literacy on financial inclusion? a cross-country evidence

This study examines the interlinkages between financial literacy, economic freedom, government quality, and financial inclusion using cross-sectional and panel data analysis. Using a sample of 98 countries from the year 2007 to 2018, OLS and system GMM estimators were used to analyze the results. The estimation results indicate that financial literacy and government quality positively influence financial inclusion. Results also find that governance quality strengthens the effect of financial literacy on financial inclusion. The results derived from the dynamic panel model also reasonably conclude the positive effect of economic freedom on financial inclusion while government quality acts as a catalyst for their link. Our results are also robust to sub-panels based on the level of country risk.

The Effect of Defense Spending on Subjective Well-Being: Cross-Country Evidence

The Effect of Defense Spending on Subjective Well-Being: Cross-Country Evidence

Earnings quality and investment efficiency: the role of the institutional settings

The current study examines the association between earnings quality (EQ) and investment efficiency (IE) using the conditional effect of legal origin. Further, we assess the influence of the institutional ownership (IOW) on the relationship between EQ and IE within different legal environments, using a sample of 22,446 firm-year observations from the US, the UK, Germany and Japan over the period of 2001–2018. In general, the results provide cross-country evidence that a higher EQ enhances IE. Further, the results indicate that higher EQ can mitigate overinvestment and underinvestment problems by ensuring that firms move toward their optimal level of investment. In addition, the findings reveal that a country’s legal environment affects IE with EQ having a stronger association with IE in common law countries as compared to code law economies. In terms of the conditional role of IOW, the findings illustrate that the effect of IOW on the relationship between EQ and IE varies within different legal origins. The results are robust to alternative measures for the main variables examined. This study provides policy implications for investors, managers, regulators, and theorists about the role of the institutional settings on the relation between certain properties of EQ and IE.

Digitalization and populism: Cross-country evidence

The current paper aims to analyze the impact of digitalization on the rise of populism in recent decades. To this purpose, it empirically investigates the impact of the business sector's digital adoption on populism using data for 82 countries. The cross-country regression estimates indicate that digital adoption by the business sector increases populist rhetoric the leader party adopts. Additionally, cross-country regression results show that the level of democracy decreases while corruption increases populist rhetoric. The cross-country regression estimation results also indicate that digitalization increases populism for both left-wing and right-wing political parties. These results indicate that digital adoption by the business sector should not be excluded from empirical studies.

Consumption and housing net worth: Cross-country evidence

Using a 22-country OECD panel from 1996 to 2017, we examine the extent to which the housing net worth channel affects personal consumption internationally during a period of considerable variation in house prices and credit provision. We identify an asymmetrical response where declines in housing net worth have a much greater impact on consumption than arises for positive changes in net worth.

Adult skills and labor market conditions during teenage years: cross-country evidence from international surveys

Abstract Do individuals finishing compulsory school in economic downturns end up with higher skills in adulthood than comparable individuals that finish compulsory school in economic upturns? This article answers this question by exploring data on country unemployment rates combined with individual data on educational attainment and adult skills in numeracy and literacy from the Program for the International Assessment of Adult Competencies. We find that completed education is countercyclical, and the same pattern is found for adult skills in numeracy and literacy. The results are fairly robust across different model specifications including fixed country and cohort effects and country-specific cohort trends. The results indicate that the labor market conditions at the time when young people make crucial educational decisions have long-lasting effect on skills and potential earnings in adulthood.

Nighttime lights and wealth in very small areas:

Nighttime lights observed from satellites are a widely accepted proxy measure for economic development. This is mainly based on cross-country evidence that finds strong correlations between lights and Gross Domestic Product. Yet, the evidence on the correlations at local levels is scarce, and it often relies on randomly sampled survey data. We contribute by enhancing the understanding of the relationship between light and development at local levels. First, we use complete (non-publicly available) census data from Namibia to evaluate the findings based on the randomly sampled Demographic and Health Surveys data. We find that the census data provides a stronger association between light and wealth at local levels. Second, we criticize the practice of aggregating light from buffers around survey cluster locations. Instead, we recommend aggregating data in grid cells, and studying the relationship in different grid sizes. In our study correlations based on grid cells remain significant from a 0.5 degree grid to the smallest 0.0083 degree grid (~1 km2) allowed by the nighttime light data. Third, we supplement the commonly used relative wealth index by using individual asset variables as proxies for the total stock of wealth. The stock variables reveal a significant association between changes in light and wealth which cannot be found using our relative wealth index. Altogether, our results show that nighttime lights provide an even stronger signal of economic development at local levels than the current survey-based results in the literature suggest.

Effect of mandatory sustainability disclosure announcements:cross-country evidence

PurposeThis study aims to examine whether announcements of mandatory sustainability disclosure affect corporate sustainability performance (CSP).Design/methodology/approachThe authors use a quasi-experiment provided by mandatory sustainability disclosure announcements that occurred in 21 countries from 2006–2016. A difference-in-differences method is adopted. The authors restrict the drawing of all candidate treatment and control firms to a pool of firms that did not disclose sustainability information one year before the announcements.FindingsThe authors find that the announcements of mandatory sustainability disclosure are positively related to CSP. The positive effect is more pronounced for firms in countries with higher anticipation effects and lower awareness effects. Specifically, the authors find that the effect of the announcements is more pronounced in a country where the rule of law is higher and stakeholders are less likely to initiate communication about sustainability with firms, and with fewer active participants in and signatories to the United Nations Global Compact initiative. The findings hold under different robustness analyses.Originality/valueThe study enriches the knowledge about the effect of the announcements of comprehensive mandatory sustainability disclosure by analysing the consequences of these announcements. In the contribution to this growing stream of research, the authors provide evidence on the consequences of the announcements based on a cross-country sample and importantly, focusses on the non-economic consequences.

Geography and Agricultural Productivity: Cross-Country Evidence from Micro Plot-Level Data

Abstract We quantify the role of geography and land quality for agricultural productivity differences across countries using high-resolution micro-geography data and a spatial accounting framework. The rich spatial data provide for each cell of land covering the entire globe, the potential yield for 18 crops, which measures the maximum attainable crop output given soil quality, climate conditions, terrain topography, and a given level of cultivation inputs. While there is considerable heterogeneity in land quality across space, even within narrow geographic regions, we find that low agricultural land productivity is not due to unfavourable geographic endowments. If countries produced current crops in each cell according to potential yields, the rich-poor agricultural yield gap would virtually disappear, from 214% to 5%. We also find evidence of additional aggregate productivity gains attainable through spatial reallocation and changes in crop production.