Economic Growth In Transition Economies Research Articles

Empirical Analysis of the Relationship between Foreign Aid and Economic Growth in Transition Economies

Kavram itibariyle Doğu Bloku bir diğer bilinen karşılığı Sovyetler Birliği önderliğinde oluşturulan sosyalist blok, kısmen Asya ve Doğu Avrupa ülkeleri üzerinde yaklaşık 70 yıllık bir sürede hüküm sürmüştür. Birlik, ülkelerin siyasi, sosyal ve ekonomik yapılarını komünist özellikli ideolojik yapı çerçevesinde şekillendirmiştir. Karşı rakip Amerika Birleşik Devletleri benimsemiş olduğu piyasa ekonomisi ile merkezi planlamaya dayalı ekonomik sistemini sürdüren blok ülkeleri ile mücadelesini 1990 yılı birliğin çöküşüne dek sürdürmüştür. Üye ülkeler ideolojik yapının çözülmesiyle birlikte başta ekonomi olmak üzere çeşitli alanlarda reformlara başvurma gereği duymuştur. Söz konusu reformlara başvuran ülkeler geçiş ekonomisi terimi ile adlandırılmıştır. Bu çalışmada geçiş ekonomilerinde dış yardımlar ile ekonomik büyüme arasındaki nedensellik ilişkilerinin 2002-2018 dönemi için panel veri yöntemleriyle araştırılması amaçlanmıştır. Çalışma kapsamında yapılan yatay kesit bağımlılığı ve homojenlik testleri birimler arasında yatay kesit bağımlılığının olmadığını ve eğim katsayılarının homojen olduğunu göstermektedir. Bu nedenle çalışmada homojen panelleri dikkate alan nedensellik analizine başvurulmuştur. Analiz sonuçları ülkeden ülkeye farklılık göstermekle birlikte panelde yer alan ülkelerden Ermenistan, Çin ve Kazakistan için dış yardımlardan ekonomik büyümeye doğru, Azerbaycan için ise ekonomik büyümeden dış yardımlara doğru tek yönlü nedensellik ilişkilerinin olduğunu göstermektedir. Çalışmada dış yardımların yanı sıra bulguları çalışmanın uygulama kısmında paylaşılan enflasyon oranı, doğrudan yabancı yatırımlar, beşeri sermaye, ticarete açıklık ve kurumsal kaliteyi temsil eden değişkenler ile ekonomik büyüme arasındaki nedensellik ilişkileri de araştırılmıştır.

EMIGRATION AND ECONOMIC GROWTH IN EUROPEAN TRANSITION ECONOMIES: EVIDENCE FROM A BOOTSTRAP PANEL CAUSALITY TEST IN ROLLING WINDOWS

The relationship between migration and economic growth has long been a matter of discussion in theoretical and empirical domains. Previous studies which explored the link between variables suggested an estimation for an unchanging parameter. Despite that; prevailing economic and political circumstances, effective contracts and agreements, implemented policies, ongoing crises or shocks can cause a shift in the relationship across variables in due course. This study analyses the relationship between emigration and economic growth in transition economies in Europe for the period between 1995-2019 by administering time-varying causality test. Findings obtained from the bootstrap panel causality test suggest that there is a bidirectional causality relationship between emigration and economic growth only in Estonia but results of bootstrap panel rolling window causality analysis reveal that for the subperiods, there exist hidden causal relationships within Hungary, Lithuania, Poland, Slovakia and Slovenia.

The role of ICT development in boosting economic growth in transition economies

The role of ICT development in boosting economic growth in transition economies

Does fiscal policy accelerate economic growth in transition economies: the case of Republic of North Macedonia

Does fiscal policy accelerate economic growth in transition economies: the case of Republic of North Macedonia

Does fiscal policy accelerate economic growth in transition economies: the case of Republic of North Macedonia

The aim of this study is to investigate empirically the relationships and the causal link between fiscal policy and economic growth in the Republic of North Macedonia during the period 1990-2015. The study employs the quarterly dataset of public finance, which is classified according to Barro and Sala-i-Martin model in a small open economy. For this purpose, we employ vector error correction model (VECM - henceforth) in order to examine the relationships and causal link between fiscal policy and economic growth. The results of cointegration vector show that productive expenditure and non-distortionary revenues have long run coefficients of 0.86 and 0.84 respectively, indicating positive effect on real GDP, while distortionary revenues have long run coefficient of −1.14, indicating negative effect on real GDP in the long-run. However, unproductive expenditures are excluded from the long-run equilibrium, thus they do not have any effect on economic growth in the long-run. The Granger causality test shows that productive expenditures and non-distortionary revenues in the Granger sense cause real GDP.

University-industry linkages, regional entrepreneurship and economic growth: evidence from China

ABSTRACT The role of universities, as the cradle for talents and knowledge development, has long been neglected by scholars, especially in emerging economies. In addition, the roles of startups and incumbents, as a channel through which the knowledge could contribute to the economic growth in transition economies, have not been well-explained in extant literature. This paper aims to fill these theoretical and practical gaps by examining the effects of university-industry linkages (including university technology transfer (UTT) and university-industry collaboration (UIC)) and enterprises’ activities (including startups and incumbent competitiveness (IC)) on economic growth in China. Our empirical analysis is based on Chinese provincial panel data from 2003 to 2015. Unlike findings from developed countries, we found that UTT is negatively associated with economic growth in fixed effect and ordinary least squares (OLS), whereas UIC shows no significant impact in fixed-effect but a significant positive effect in OLS. Startups and IC both affect economic growth positively, whereas IC has a greater effect on both estimations. The effects of university-industry linkages and entrepreneurship on economic growth before and after the 2008 financial crisis show heterogeneity. Theoretical and practical implications are discussed in the final section.

Relationship Between Public Expenditures and Economic Growth in Transition Economies: 1998-2017 Period

Geçiş ekonomisi, merkezi olarak planlanan bir ekonomiden serbest piyasa ekonomisine dönüşmekte olan bir ekonomiyi ifade etmektedir. Geçiş ekonomileri, piyasa temelli kurumlar geliştirmeyi amaçlayan bir dizi yapısal dönüşümden geçmektedir. Bu çalışmada geçiş ekonomilerinde 1998-2017 dönemine ait kamu harcamalarının ekonomik büyümeye olan etkisi incelenmiştir. Bu kapsamda F testi ve Hausman testi uygulanmıştır. Panel veri regresyon modellerinin ele alındığı analizde, sabit etkiler modelinin uygun olduğu görülmüştür. Model, varsayımlardan sapmalara karşı geliştirilen Driscoll-Kraay dirençli standart tahmincileriyle tahmin edilmiştir. Analizde 21 geçiş ekonomisinin 1998-2017 dönemine ait kamu harcamalarının ekonomik büyümeye olan etkisi ele alınmıştır. Analiz sonucunda, 21 geçiş ekonomisinin iktisadi büyümesinde kamu harcamalarının pozitif etkisi olduğu bulgusuna ulaşılmıştır. Bu bağlamda, kamu nihai tüketim harcamalarındaki %1’lik artış reel gayri safi yurtiçi hasılayı %0,42 oranında artırmaktadır. Ek olarak bu sonuç, geçiş ekonomilerinin kamu kaynak tahsisinde etkinlik, siyasi istikrarın iktisadi istikrara olan etkisi, merkezden planlanan ekonomilerin serbest piyasaya geçişteki başarısı ve geçiş ekonomilerinin küresel rekabetteki konumu gibi hususlarda birtakım çıkarımlar yapmaya imkân tanımaktadır.

Export Structure and Economic Performance in Transition Economies

Purpose: The current paper assesses the effects of export product structure on the economic growth in transition economies. Design/methodology/approach: The preferred estimation methods are Pedroni/Kao panel cointegration, along with FMOLS and Granger causality tests. The employed dataset corresponds to 11 transition economies over the period of 1997-2017. Findings: The results of empirical estimation showed that manufactured exports are not always the source of high economic growth as suggested by a vast literature. It appeared that the growth in transition economies has a higher response to the changes in exports of primary goods rather than manufactures. Practical Implications: Considering current trade patterns and the high demand elasticity attached to manufactured exports, the study concludes that selected transition economies should incorporate somewhat balanced trade policy fostering both exports of primary commodities and manufactures, where earnings from commodities should be facilitated to support rise of manufactures as it exhibits larger demand and potential to deploy technology/knowledge spillovers, thus, further complement economic growth. Originality/value: The paper represents valuable addition to the empirical literature concerning the exports and economic growth, especially for the selected sample corresponding to the remaining transition economies after massive transformation in 2004/2007 when several European states successfully completed the transition process.

Optimal tax revenues and economic growth in transition economies: a threshold regression approach

The purpose of this article is to explore the impact of tax revenue as a share of GDP on economic growth in transition economies. The article uses a dynamic panel threshold model to examine the nonlinear relationship between tax revenue and economic growth of 11 central and south-eastern European and Baltic countries during the transition process between 1995 and 2014. The results suggest that the optimal level of tax revenue for maximising economic growth is approximately 18.00% of GDP for full transition economies, 18.50% for developing economies and 23.00% for developed economies. The findings indicate that tax revenues as a share of GDP above the threshold level adversely affect economic growth whereas a tax revenue rate below the threshold positively affects growth. The results of the current study reveal that tax sizes representing the share of the government in the economy have an optimal level.

FINANCIAL INCLUSION AND ECONOMIC GROWTH: EVIDENCE FROM TRANSITION ECONOMIES OF EUROPEAN UNION

ABSTRACT Financial sector has been developed globally as of 1980s and become a part of daily life of the individuals. This study explores the impact of financial inclusion indicators including financial institutions access and financial markets access on economic growth in transition economies of Central and Eastern European Union during 1996-2014 period with Dumitrescu and Hurlin (2012) causality test. The causality analysis revealed a unilateral causality from financial markets access to the economic growth Keywords Financial Institutions Access, Financial Markets Access, Economic Growth, Panel Causality Test

Optimal Tax Revenues and Economic Growth in Transition Economies: A Threshold Regression Approach

The purpose of this article is to explore the impact of tax revenue as a share of GDP on economic growth in transition economies. The article uses a dynamic panel threshold model to examine the nonlinear relationship between tax revenue and economic growth of 11 central and south-eastern European and Baltic countries during the transition process between 1995 and 2014. The results suggest that the optimal level of tax revenue for maximising economic growth is approximately 18.00% of GDP for full transition economies, 18.50% for developing economies and 23.00% for developed economies. The findings indicate that tax revenues as a share of GDP above the threshold level adversely affect economic growth whereas a tax revenue rate below the threshold positively affects growth. The results of the current study reveal that tax sizes representing the share of the government in the economy have an optimal level.

ODA and Economic Growth in transition economies of Northeast Asia: Preliminary reviews and implications to North Korea

ODA and Economic Growth in transition economies of Northeast Asia: Preliminary reviews and implications to North Korea

ODA and Economic Growth in transition economies of Northeast Asia: Preliminary reviews and implications to North Korea

ODA and Economic Growth in transition economies of Northeast Asia: Preliminary reviews and implications to North Korea

Does Privatization Affect Economic Growth?: An Evidence From Transition Economies

This study examines the relationship between privatization and economic growth. The study test the hypothesis that privatization contributes to boost economic growth in transition economies by exploiting a panel data set including the period 1990 to 2008. The largest sample of the study includes 21 transition economies. Six distinct privatization indicators and two different economic growth indicators were used. In the light of estimation results, a positive correlation between privatization and economic growth was identified. This finding is statistically significant and remains valid for six different privatization and two economic growth indicators. Thus, the results suggest that privatization stimulates economic growth in transition economies, controlling for other factors that may contribute to economic growth.

Determinants of Economic Growth in Transition Economies: Implications for Economic Reform in North Korea

Instability in the North Korean economy and regime stands out as one of the most important challenges for the South Korean economy. However, despite the significance and severity of the issue, there is presently a comparative lack of research on the potential for change in the North Korean economy, or policy preparedness in the event it occurs. The purpose of this study is to suggest policy measures that would support the successful transition of the North Korean regime. To this end, the study estimates the determinants of economic growth of both market economies and transition countries. Furthermore, the study examines the characteristics of economic growth determinants by income level and draws implications for North Korea’s transition to a market economy. Based on theoretical and empirical analysis, this study brings North Korea’s transition and economic growth issues into the spotlight to elicit policy measures for the regime’s economic growth, while at the same time suggesting the general direction for inter-Korean economic cooperation on the part of the South Korean government.

Absorptive Capabilities, FDI, and Economic Growth in Transition Economies

This article advances the literature on economic growth and Foreign Direct Investments (FDI) in transition economies by incorporating data on “absorbtive capabilities” of the host economy including R&D indicators and by enhancing the quality of data on FDI. We explore whether countries with accumulated technological and innovative capabilities gain significantly more from FDI. We find that FDI exerts an exogenous positive impact on economic growth, while FDI tends to have a larger impact on economic growth when there is sufficient absorptive capacity and when occurring in technologically more advanced transition economies. The results are robust to different specifications and consideration of endogeneity.

Financial System Development and Economic Growth in Transition Economies: New Empirical Evidence from the CEE and CIS Countries

ABSTRACTWe examine the role of financial development in economic growth in the former Communist countries of Central and Eastern Europe and the Commonwealth of Independent States during the first two decades since the beginning of transition. These countries, which had undeveloped financial systems under Communism, provide an interesting test of the relationship between financial development and growth. Our study is the broadest in terms of coverage and time period. We find that measures of financial market efficiency and competitiveness are more important than the size of the market in terms of promoting economic growth.

Knowledge Spillovers, Absorptive Capacities and the Impact of FDI on Economic Growth: Empirical Evidence from Transition Economies

In this paper we employ econometric analysis to investigate the impact of FDI and the related externalities on economic growth in transition economies. We contribute to recent literature by using more reliable measure of FDI while also depicting the character of FDI and related knowledge spillovers, as well as by examining the importance of technological and innovative capabilities in explaining the growth performance among transition economies, not previously studied. Overall, the results of our empirical analysis seem to render support to the hypothesis that FDI contribute to economic growth predominantly through knowledge spillovers, and that the higher level of technological development proxied by government and business R&D expenditures is associated with better growth performance among transition economies. Essentially, by the way we measure FDI in this analysis (i.e. the share of FDI in the manufacturing gross value added) and in the view of the integrated framework in which we study the relationship between FDI and economic growth, allows us to stipulate that the positive impact of FDI on economic growth is associated with more knowledge-capability and efficiency-seeking FDI.

Determinants of Economic Growth in Transition Economies: Do International Trade and Domestic Savings Matter?

This paper presents a modified two-gap model and analyses the impact of international trade and domestic savings on the economic growth in the transition countries. The model indicates that economic growth is constrained by domestic savings when the domestic savings are relatively scarce, whereas it is constrained by the availability of the foreign resources when the export capacity is relatively small. While the implications of the model are on the whole supported by the switching regression results, we yield an unexpected result, namely the negative relation between real GDP growth rate and domestic savings. This can be plausibly interpreted as the adjustment effect of the characteristics inherited from the old system, namely inefficiency in the centrally planned system and the high level of domestic savings. Alternatively, the weak financial intermediation in the transition economies and the prevalent banking crisis in relatively advanced transition countries can reconcile this unexpected relation.

Foreign Direct Investment In Transition Economies: An Institutional Approach

Foreign direct investment (FDI thereafter) is very important for economic growth in transition economies. They have major impact in economic development as a source of physical capital, diffusion of technology, improvements in management and marketing techniques, and enhancing institutional setting of these economies toward market oriented. In this paper, an institutional approach to FDI inflow is investigated to identify relevant factors that have shaped and influenced transition economies. The role of institutions in the inflow of FDI in transition economies is estimated empirically by using Seemingly Unrelated Regression Estimation (SURE) technique.