Differences In Gross Domestic Product Research Articles

Multinational Corporations transfer Pricing Policies and Economic Growth in Nigeria

With Nigeria's abundant natural resources the control of a substantial portion of oil production by multinational corporations (MNCs) raises concerns about transfer pricing manipulation. Part of revenue leakages of the government in Nigeria which are needed to boost economic growth can be attributed to tax evasion practices by MNCs through their transfer pricing activities. Studies that focused on tax evasion practices of MNCs such as sharp practices in the area of transfer pricing practices in Nigeria are scarce. This study examined the effect of multinational corporations transfer pricing policies, corruption and economic growth in Nigeria from 1986 to 2022. The study adopts an ex-post factor research design, utilizing an autoregressive distributed lag modelling and bound testing cointegration as the estimation techniques. The inferences were made at 5% significant level. The inferences were made at 5% significant level. The findings revealed that domestic non-oil revenue shows a significant and positive effect on Gross Domestic Product, suggesting a potential positive association between domestic non-oil revenue and Gross Domestic Product over the long term. In the short run lagged differences in Gross Domestic Product exhibit a positive and marginally significant coefficient, suggesting a persistence effect. In conclusion, in the examination of transfer pricing policy on Gross Domestic Product, the long-run estimates reveal a significant effect of transfer pricing on Gross Domestic Product (Adj. R2= 0.229, F (4,37) = 30.94, p< 0.05)), The study concluded that transfer pricing contributes valuable insights to the on economic growth in Nigeria. The study recommended that policy maker should center on promoting transparency and fairness in multinational corporations' transfer pricing practices through the implementation of stringent regulations and monitoring mechanisms, collaboration between domestic and international tax authorities to detect and deter potential manipulations, and the fostering of international cooperation to establish standardized guidelines, aiming for an equitable and consistent approach across jurisdictions.

Landscape divergence associated with international borders and economic asymmetries

Land cover divergences across international borders reflect how country-level policies influence ecological footprints on the landscape. We identified 30 abrupt transboundary divergences across the globe, with major land cover differences despite similar ecological conditions. Divergences were significantly associated with differences in Gross Domestic Product (GDP) between countries, not with demographic differences. In mountains, unsuitable for mechanized agriculture, wealthier countries have higher forest cover and urbanization, suggesting advanced ‘forest transitions’. Lowlands with rainfed agricultural potential showed more agriculture development on the wealthier side of the border, except when the country´s economy was not based on agriculture. In drylands, wealthier countries showed much more irrigation-based agriculture. Despite globalization, transboundary divergences are unlikely to disappear and may even intensify, thus meriting increased research attention as a distinctive feature of Anthropocene ecology.

Water Stress and Productivity: An Empirical Analysis of Trends and Drivers

AbstractWater scarcity is a global risk that could arguably be mitigated by using water more efficiently, that is, increasing water's productivity. However, the effects of water productivity on water stress have not been empirically tested or validated across countries. Evidence from other natural resource sectors suggests that improving productivity may, in fact, lead to “rebound” effects that exacerbate resource exploitation. An econometric analysis is used to evaluate the relationship between water stress and productivity at the country level. A 1.0% increase in productivity is associated with a 0.81% decrease in water stress through time within a country, on average, and accounts for 75% of the variance of water stress. This suggests that targeting improvements in productivity have the ability to lower water stress. Analysis of trends in stress and productivity demonstrates that several developed countries are starting to exhibit decreasing trends in stress. Conversely, stress is low in developing countries, but rising. Productivity is generally increasing across all countries. Fixed effects panel regressions demonstrate that population, cultivated land, and political stability are also related to a variance in stress within a country. Differences in gross domestic product and precipitation explain variations in stress when looking across countries. The results of this analysis show that as a country develops, water stress is initially likely to increase. Increasing water productivity, which typically occurs later in a country's development pathway, is linked to decreasing stress, so water stress has the potential to be mitigated if a “productivity transition” were to take place sooner.

Interpreting economic complexity.

Two network measures known as the economic complexity index (ECI) and product complexity index (PCI) have provided important insights into patterns of economic development. We show that the ECI and PCI are equivalent to a spectral clustering algorithm that partitions a similarity graph into two parts. The measures are also closely related to various dimensionality reduction methods, such as diffusion maps and correspondence analysis. Our results shed new light on the ECI's empirical success in explaining cross-country differences in gross domestic product per capita and economic growth, which is often linked to the diversity of country export baskets. In fact, countries with high (low) ECI tend to specialize in high-PCI (low-PCI) products. We also find that the ECI and PCI uncover specialization patterns across U.S. states and U.K. regions.

An empirical study on credit card loan delinquency

Following the Basel II convention, consumer credit default is commonly defined as delinquency beyond a period of 90 days. In this study, rather than considering default as a binary variable, we dissect delinquency states further to investigate default behavior in greater detail. As such, we define three states—no delinquency, delinquency and serious delinquency—and estimate the probabilities of the transitions between states using extensive panel data from Korea, covering a wide range of behavioral information. Our findings have several economic implications. First, the factors that affect delinquency risk can differ from those that affect the transition from delinquency to serious delinquency. Second, the recent increase in the number of seriously delinquent accounts can be attributed to changes in the borrower age distribution. Third, macroeconomic conditions, especially differences in gross domestic product and consumption growth, have led to the recent increase in delinquent accounts. Fourth, the debt-to-income (DTI) ratio has a profound effect on transitions between delinquency states and thus affects both recovery and delinquency. Furthermore, this result is robust to controls for demographic and macroeconomic factors.

Jobless Recovery: A Time Series Look at the United States

We use vector auto regression models controlling for log differences in gross domestic product (GDP), the unemployment rate, and changes in the unemployment rate to show that following a recession, the rate of decrease in the unemployment rate significantly slowed over time. Controlling for GDP growth rates, we find two structural breaks indicating weaker recoveries in the unemployment rate over time, i.e. recoveries that are increasingly jobless. The first break is in 1959, and the second is in 1984 coinciding with the usual timing of the Great Moderation. Using the 7.85% unemployment rate at the end of 2012 and assuming average annual recovery growth of 2%, the structural breaks imply an additional two full years are necessary to return to a historical long-run average of 5.5%. We empirically explore possible causes proposed in the literature including industry composition, participation rates and social benefits. Demographic shifts in the labor force and changing industry composition appear to be the strongest contributors to jobless recovery.

Does Contextual Change Affect Basic Human Values? A Dynamic Comparative Multilevel Analysis Across 32 European Countries

This article examines the relationship of stable contextual differences and contextual change with the endorsement of Schwartz’s (1992) two basic value dimensions—Openness-to-Change versus Conservation and Self-Enhancement versus Self-Transcendence. Using six waves of the European Social Survey, an extension of multilevel analysis is used which combines both a cross-national comparative and a dynamic analysis of values. The hierarchical data structure and the covariates for value endorsement are defined at three distinct levels: a first level for individuals (with sociodemographic variables, such as age and gender), a second level for country-waves (with time-varying covariates), and a third level for country (with time-invariant covariates). The main aim is to determine if changes in contextual covariates over time are related to value differences between countries over and above contextual time-invariant covariates. High national wealth and low income inequality predicted high Self-Transcendence values and low Conservation values. Low national unemployment rates were associated with less conservatism. When entered simultaneously into the model, only time-invariant differences in gross domestic product (GDP) remained to be a significant predictor of Schwartz’s two basic value dimensions. Finally, we found that an increase in income inequality over time has a certain incremental effect on the endorsement of Conservation over Openness-to-Change values. There were no associations for changes in national wealth and unemployment rates, suggesting that for value endorsement, time-varying contextual effects are less important overall than time-invariant contextual effects.

Zero carbon energy system of South East Europe in 2050

South East Europe is the region in a part of Europe with approximately 65.5 million inhabitants, making up 8.9% of Europe’s total population. The countries concerned have distinct geographical features, various climates and significant differences in gross domestic product per capita, so the integration of their energy systems is considered to be a challenging task. Large differences between energy mixes, still largely dominated by fossil-fuel consumption, make this task even more demanding.This paper presents the transition steps to a 100% renewable energy system which need to be carried out until the year 2050 in order to achieve zero carbon energy society. Novelty of this paper compared to other papers with similar research goals is the assumed sustainable use of biomass in the 100% renewable energy system of the region considered. It is important to emphasize here that only the sustainable use of biomass can be considered carbon-neutral. The resulting biomass consumption of the model was 725.94PJ for the entire region, which is in line with the biomass potential of the region. Modelling the zero-carbon energy system was carried out using the smart energy system concept, together with its main integration pillars, i.e. power-to-heat and power-to-gas technologies. The resulting power generation mix shows that a wide variety of energy sources need to be utilized and no single energy source has more than a 30% share, which also increases the security of supply. Wind turbines and photovoltaics are the main technologies with shares of 28.9% and 22.5%, followed by hydro power, concentrated solar power, biomass (mainly used in cogeneration units) and geothermal energy sources. To keep the biomass consumption within the sustainability limits, there is a need for some type of synthetic fuel in the transportation sector. Nevertheless, achieving 100% renewable energy system also promises to be financially beneficial, as the total calculated annual socio-economic cost of the region is approximately 20 billion euros lower in the year 2050 than in the base year. Finally, energy efficiency measures will play an important role in the transition to the zero-carbon energy society: the model shows that primary energy supply will be 50.9% lower than in the base year.

THE AGRICULTURAL PRODUCTIVITY GAP IN EUROPE

For 15 European countries over the 1970–2004 period we find large and persistent agricultural productivity gaps, the ratio of value added per hour in nonagriculture to that in agriculture. Comparing the gap in value added per hour to the wage gap between the two sectors suggests that value added in the data is mismeasured. We further find that, controlling for differences in gross domestic product per capita and institutions, the mismeasurement is positively related to self‐employed share of hours in agriculture. Correcting for underreporting of self‐employment income using our preferred correction factor reduces the measured agricultural productivity gap by 38%. These findings suggest that underreporting can account for a significant portion of the measured agricultural productivity gap. (JEL E01, O47, O52, Q10)

Intra-tourism trade, income distribution and tourism endowment: an econometric investigation

Empirical investigation (Nowak et al., 2012) points out that vertical intra-industry trade (VIIT) in Europe is the dominant type of intra-industry trade (IIT) in the tourism sector. This article is the first in tourism literature to test separately the determinants of vertically and horizontally differentiated services, using the most recent models in the theory of IIT. We examine bilateral trade among all trading partners of the sample of European countries, covering the period from 2000 to 2008. We show that differences in gross domestic product per capita and the income-distribution overlap, as well as cultural proximity, are the most significant driving forces behind VIIT for European countries. Geographic distance has a negative effect, whereas specific tourism endowments and relative size of the economies are less conclusive. These results confirm theory predictions and most of the empirical findings related to the pattern of VIIT for the manufacturing sector. As expected, we find that determinants of VIIT cannot explain horizontal intra-industry trade in tourism. We suggest two alternative methods of estimation: generalized least squares logistic function and the fractional logit estimator. We conclude that there are common factors explaining IIT in the manufacturing and tourism trades.

Productivity, Structural Change and LatinAmerican Development

AbstractWe calibrate a simple neoclassical growth model adapted to illustrate a process of structural transformation or industrialization to a group of nineSouthAmerican countries. The paper shows that low levels of agricultural productivity can substantially delay the process of industrialization, which, together with low levels of non‐agricultural productivity observed in recent decades, satisfactorily explains the significant differences in gross domestic product (GDP) per capita levels among the countries in our sample. The results suggest thatArgentina underwent the process of industrialization first followed byUruguay,Chile,Brazil,Colombia,Ecuador,Peru,Paraguay andBolivia. The model predicts that the ranking of these countries in terms ofGDPper capita would follow this order until convergence occurs. The empirical evidence confirms the prediction of the model with the exceptions ofUruguay andChile which caught up withArgentina in terms ofGDPper capita levels in the late 1980s.

KNOWLEDGE MISALLOCATION AND GROWTH

We develop a growth model where knowledge is embodied in individuals and diffused across sectors through labor mobility. The existence of labor mobility costs constrains mobility and thus generates labor misallocation. Different levels of labor misallocation imply different levels of exploitation of available knowledge and therefore different total factor productivity across countries. We derive a positive relationship between growth and labor mobility, which is consistent with the empirical evidence, by assuming aggregate constant returns to capital. We also analyze the short- and long-run effects of labor mobility costs in the case of decreasing returns to capital. It turns out that changes in mobility costs have larger economic effects when different types of workers have small rather than large complementarities. Finally, we show that different labor income taxes or labor market tightness imply different rates of labor mobility and therefore can explain differences in Gross Domestic Product across countries.

National Differences in Environmental Concern and Performance Are Predicted by Country Age

There are obvious economic predictors of ability and willingness to invest in environmental sustainability. Yet, given that environmental decisions represent trade-offs between present sacrifices and uncertain future benefits, psychological factors may also play a role in country-level environmental behavior. Gott’s principle suggests that citizens may use perceptions of their country’s age to predict its future continuation, with longer pasts predicting longer futures. Using country- and individual-level analyses, we examined whether longer perceived pasts result in longer perceived futures, which in turn motivate concern for continued environmental quality. Study 1 found that older countries scored higher on an environmental performance index, even when the analysis controlled for country-level differences in gross domestic product and governance. Study 2 showed that when the United States was framed as an old country (vs. a young one), participants were willing to donate more money to an environmental organization. The findings suggest that framing a country as a long-standing entity may effectively prompt proenvironmental behavior.

A Comparison of GDP Per Capita in Canada and the United States from 1994 to 2005

This study examines differences in gross domestic product (GDP) per capita between Canada and the United States from 1994 to 2005. The gap in GDP per capita between the two countries has narrowed slightly over this period. The study decomposed the gap into two components: one due to labour productivity and one due to labour market conditions, and shows that the relative importance of the two changed considerably after 2000. The output gap has narrowed slightly since 2000, primarily because Canada's labour market experienced a faster rate of job growth relative to its population than did the United States.

Towards an Evolutionary and Endogenous Growth Theory Explanation of Why Regional and Urban Economies in England are Diverging

Across Europe, especially with the entry of states from the East, there is much interest in the topic of whether national and regional economies are or can be induced to converge over time. The large differences in Gross Domestic Product (GDP) per capita and growth rates across the Union stimulate this concern. Of particular interest is how the Structural Funds may be used to reduce these discrepancies. Although there are some signs of convergence across Europe at the cross-country and cross-regional level, within some of the more prosperous national economies, regional differences remain stubbornly resistant to real and measurable convergence. In the United Kingdom, for example, the issue of the comparatively poor economic performance of some English regions and many of the cities located in them has risen up the policy agenda since the 2002 Spending Review. There, for the first time in two decades, the Government committed itself to reducing the disparities in growth between the English regions through a Public Service Agreement (PSA). PSAs are 3-year agreements negotiated between each of the 19 main UK Government Departments and the Treasury to improve the performance in key areas of policy. Three ministries have set themselves the jointly held target of making ‘sustainable improvements in the economic performance of all English regions and over the long term reduce the persistent gap in growth rates between the regions, defining measures to improve performance and reporting progress against these measures by 2006’. The Ministries involved are the Office of the Deputy Prime Minister (ODPM) through their PSA 2 (at the time, the Ministry responsible for planning, housing and regional policy), the Treasury (PSA 6), and the Department for Trade and Industry (PSA 7).

International Comparisons of Levels of Capital Input and Multi-Factor Productivity

Abstract The paper uses a method by Christensen et al. to construct crosscountry comparisons of the levels of capital input, capital and labour productivity and multi-factor productivity. These results are used to decompose international differences in gross domestic product per capita into differences in labour utilization, information and communication technology (ICT) and non-ICT capital intensity and multi-factor productivity for seven Organisation for Economic Co-operation and Development countries. We provide Monte Carlo estimates to examine the effects of measurement errors in the base data, and these simulations showed that boundaries for the resulting indicators can be important.

Variations Among Spanish Regions in the Use of Three Cardiovascular Technologies

There is evidence that some geographic variations in the use of medical technologies are not explained by differences in disease burden. The objectives of this study were to quantify variability in the use of percutaneous coronary intervention (PCI), implantable cardioverter-defibrillators (ICDs), and cardiac resynchronization therapy (CRT) in Spanish autonomous regions and to try to explain the variability found for the first two technologies. Linear regression models were developed in which the number of procedures performed per million population (pmp) in 2003 in each autonomous region was the dependent variable. Independent variables used included indices of technology provision, regional wealth, and disease burden. For PCI, the mean utilization rate for the whole of Spain was 1038 procedures pmp, with a high-low ratio of 1.95. Differences in gross domestic product explained 21% of the variability, but there was no relationship between the number of procedures performed and disease burden. For ICDs, the mean number of procedures performed in the whole of Spain was 46 pmp, with a high-low ratio of 3.04. As for PCI, differences in regional wealth explained 40% of the variability, with disease burden making no contribution. For CRT, the mean number of procedures performed in Spain in 2003 was 15 pmp, with a high-low ratio of 15.7. The considerable regional variation that exists in the use of these three medical technologies is principally explained by differences in regional wealth and not in disease burden.