Fixed Effects Approach Research Articles

How does China’s carbon emissions trading policy affect green technology innovation? Evidence from enterprises in carbon-covered industries

ABSTRACT Using panel data on China’s carbon-covered listed enterprises, this study employs the Poisson pseudo-maximum likelihood with high-dimensional fixed effects (PPMLHDFE) approach to investigate the impact of the carbon emissions trading (CET) policy on firms’ green technology innovation. A novel categorization is proposed to classify the enterprises in carbon-covered industries into CET-included and non-CET-included groups. Results show that China’s CET policy plays a vital role in green technology innovation, with a stronger positive effect on CET-included enterprises. Furthermore, heterogeneity exists among eight carbon-covered industries. The green technology innovation of enterprises in the power and petrochemical industries, particularly the CET-included ones, is stimulated by the CET policy. However, it inhibits green technology innovation in the aviation and chemical industries and plays no role in other industries. Additionally, the effect exhibits heterogeneity across pilot areas. It is positive in Hubei and Tianjin, negative in Chongqing and Shanghai, and ineffective in Beijing, Guangdong, and Shenzhen. Finally, the effect of the CET policy on green technology innovation is stronger for state-owned enterprises than for non-state-owned ones.

ANALYSIS OF FACTORS AFFECTING STOCK PRICES OF COMPANIES IN THE AGRICULTURE SECTOR

Based on data from BPS (Statistics Indonesia) for 2019-2021, the agricultural sector in Indonesia dominated employment and attracted investment interest from various parties. This study analyzes the impact of fundamental analysis and macroeconomic variables on the fluctuations in stock prices of agricultural sector companies from 2019 to 2023. The aim is to examine the effects of Return on Assets (ROA), Price-Earnings Ratio (PER), Debt to Equity Ratio (DER), and Earnings Price Ratio (EPR) on the stock price movements of agricultural sector companies listed on the Indonesia Stock Exchange (IDX). The study employs a descriptive analysis method, involving the collection, organization, and analysis of data to accurately depict the investigated issue. Data collection was conducted at the IDX from 2019 to 2023 through library research methods, using secondary data in the form of financial reports of agricultural sector companies available on www.idx.co.id. The study utilizes a simple regression analysis model with Eviews 6.0 software to process statistical and econometric data. The panel data combines time series and cross-section data, analyzed using fixed effect and random effect approaches to estimate the regression model. Estimation methods include pooled regression/pooled least squares, assuming constant coefficients for each time and space. The research results indicate that the LSDV/FEM panel regression model is the best, with variables such as DER, Earnings Per Share (EPS), PER, ROA, world oil prices, and the rupiah exchange rate collectively having a significant impact on stock prices in the agricultural sector. Additionally, classical assumption analysis shows that the data is stationary, normally distributed, free from multicollinearity, heteroscedasticity, and autocorrelation. The managerial implication of these findings is that investors should consider purchasing stocks in the agricultural sector, taking into account fundamental conditions, macroeconomic factors, and technical analysis.

Estimating the Incremental Cost Per QALY Produced by the Spanish NHS: A Fixed-Effect Econometric Approach.

Knowing the health opportunity costs of funding decisions is crucial to assess whether the health gains associated with new interventions are larger than the health losses imposed by the displacement of resources. Empirical estimates based on the effect of health spending on health outcomes have been proposed in several countries, including Spain, as a proxy to capture these opportunity costs. However, there is a need to regularly update existing health opportunity cost estimates and to explore the role of omitted variable bias in these estimations. The aim of this paper is to provide an updated and refined estimate of the causal impact of health spending on health in Spain that can be translated into an estimate of the incremental cost per quality-adjusted life-year produced by the Spanish national health system. We applied fixed-effect models using data for 17 Spanish regions from 2002 until 2022 to estimate the impact of public health spending on health outcomes and explored the extent of omitted variable bias. Changes in these estimates over time were assessed and alternative specifications were tested. Based on fixed-effect models with control variables, the estimated spending elasticity was 0.061, which translated into an incremental cost per quality-adjusted life-year of approximately €34,000. The bias-corrected elasticity was 0.075, with a corresponding incremental cost per quality-adjusted life-year of €27,000. We found that the estimated impact of spending on health decreases when recent years of data are added, and that the extent of omitted variable bias appears to increase, particularly when adding the COVID-19 pandemic period. This study provides an updated estimation of the incremental cost per quality-adjusted life-year produced by the Spanish national health system. The estimates provided can be easily updatable as new data become accessible, and the methods applied might be transferable to other settings with similar available data.

Trend and Pattern of Costs and Varying Profitability and Determinants of Paddy Crop in Eastern India: A Fixed Effect Approach Using Cost of Cultivation Data

Trend and Pattern of Costs and Varying Profitability and Determinants of Paddy Crop in Eastern India: A Fixed Effect Approach Using Cost of Cultivation Data

Environmental shocks and agriculture: implications of floods on labor market outcomes

Abstract Floods often displace people and exacerbate their access to finance, affecting the livelihood of daily wage workers in least-developed countries. In August 2017, Nepal experienced the heaviest rainfall in more than 60 years, severely flooding about 80 per cent of the land in the southern part of the country. Using the two-way fixed effects approach and an event study design, we evaluate the impact of severe flooding on the wages of agricultural workers. We show that the 2017 floods resulted in a 9–10 per cent decrease in cash wages among agricultural households while in-kind wages of agricultural laborers increased significantly after the floods, implying that in-kind wages helped mitigate the adverse effects of floods on cash wages. We also investigate changes in assistance, loan-seeking behavior, loan repayment, and collection behavior as mechanisms leading to the risk-mitigating behavior by farmers.

The Impact of the Digital Economy on the High-Quality Development of Green Marketing in China's Manufacturing Industry: Applications of the Spatial Durbin Model

The digital economy provides China's manufacturing industry with a pathway to establish new national competitive advantages and is an essential driving force for the high-quality advancement of green marketing. Utilizing data from 30 Chinese provinces from 2013 to 2022, this study employs the spatial Durbin model to investigate the spatial relationship between the digital economy and the advancement of green marketing at a high quality. The findings indicate that the growth of the digital economy significantly fosters high-quality development in green marketing and exhibits positive spatial spillover effects on neighboring regions. The Application of spatial Durbin regression to multi-province areas has revealed that the more economically developed the region, significantly influences of the digital economy on the high-quality development of green marketing, with a local siphoning phenomenon currently visible in the eastern region. The western region exhibits a spatially positive spillover effect from the high-quality development of green marketing in other regions. Furthermore, developing the digital economy in neighboring regions significantly enhances the high-quality development of green marketing in this region. The findings remain stable when evaluated using the alternative variables method and the control fixed effects approach.

ANALYSIS OF CONVERGENCE BETWEEN PROVINCES IN INDONESIA

<p>Indonesia is one of the developing countries that is always trying to increase its economic growth. Indonesia has a large number of people with various ethnic backgrounds and diverse customs, so this situation has given rise to disparities between regions. This study aims to determine whether or not sigma convergence, to find out whether absolute and conditional convergence occurs or not, and to determine the speed of convergence. This study uses secondary data, namely Gross Regional Domestic Product (GRDP) per capita, poverty, and inequality for each province in Indonesia from 2017-2021. The method used in this study is panel data with a fixed effect approach. The results of the analysis using the sigma convergence (σ) approach show the occurrence of convergence. The results of the absolute convergence analysis explain the divergence of GRDP per capita in Indonesia with a divergence speed of 13.76% per year. The results of the conditional convergence analysis show that there is a divergence of GRDP per capita in Indonesia with a divergence speed of 13.62% per year.</p>

A Longitudinal Analysis of Long Working Hours and the Onset of Psychological Distress

Abstract OBJECTIVES There is a paucity of longitudinal studies examining the relationship between working hours and the development of Psychological Distress (PD) among U.S. workers. This study utilized a longitudinal approach to examine this relationship. METHODS The 2010-2019 Medical Expenditure Panel Survey (MEPS) data was utilized. PD was analyzed among full-time U.S. employees without PD at baseline using a fixed effect approach. RESULTS The sample comprised 27,548 full-time workers. Individuals working 61 hours or more weekly had the highest risk of PD onset, at 9.9% (95% Confidence Interval, CI = 1.9% - 17.8%, p < 0.05), compared to those working 30-35 hours weekly. Interestingly, an increased risk of PD onset was found among individuals working 36-40 hours per week at 6.6% (CI = 1.5% - 11.6%%, p < 0.05). CONCLUSION Long working hours were associated with the increased development of PD.

Do candidates’ policy positions matter in regional elections? Evidence from the 2021 elections to the Welsh Senedd

ABSTRACT An oft-cited benefit of candidate-based elections is that voters can hold individual candidates accountable for their issue stances. However, voters may not always be aware of candidates’ policy positions, a concern which becomes especially salient in regional elections. Using mass online survey data and a fixed effects approach, we investigate the extent to which voters were influenced by the policy positions of individual candidates when voting in the 2021 elections to the Welsh Senedd. We find that candidates’ policy positions did matter, but that this effect was small, limited to issues voters deemed to be particularly important, and only emerges among voters with high political interest. That said, our findings also suggest that the influence of candidates’ policy positions on voting behaviour was not substantially smaller when compared to national elections in the UK and elsewhere. We discuss options for improving voter responsiveness to candidates’ issue stances.

Regional (economic) integration, political stability uncertainty and (intra-African) exports

The economic literature reports ambiguous effects of regional economic integration (REI) and political stability on exports. Therefore, this research analyzes the effects of REI and political stability on intra-African exports, compares them to the effects on intra-African imports and explores the combined effect of REI and political stability on intra-African exports. We use the two-stage least squares and fixed-effects approach which includes the two-step feasible generalized method of moments (GMM) estimation to address endogeneity issues in a panel of 49 African countries over the period of 1996–2022. The results show that REI and political stability lead to an increase in intra-African exports. However, while REI results in an increase in intra-African imports, political stability results in a decrease; similar findings are highlighted for overall intra-African trade as well as for total exports of goods and services. The results remain robust across diverse estimation techniques. Furthermore, they reveal that political stability plays a role in amplifying the relationship between REI and intra-African exports. Supporting the African Continental Free Trade Area agenda, these findings imply that African policymakers need to (i) strengthen REI to increase intra-African trade and (ii) improve political stability to ensure that a greater part of REI is canalized in a more effective way in order to boost intra-African exports.

Revisiting the Occupational Health Impact of Right-to-Work Laws: A Research Note.

This research note reevaluates the occupational health impact of right-to-work (RTW) legislation, incorporating recent developments in causal inference techniques. In an era marked by an uptick in the adoption of anti-union legislation and increases in workplace fatalities and injuries, it is particularly urgent to examine the extent to which RTW laws affect workers' health. Using a state-year-level dataset spanning 28 years and collected from multiple data sources, we apply an innovative generalized synthetic control method to overcome several limitations of the traditional two-way fixed-effects approach to examine the effect of RTW laws on occupational fatal injuries as well as various other health outcomes. Robustness checks were conducted using a wide range of alternative methods for two-way fixed-effects adjustments. In contrast with findings from previous studies, we found null effects on occupational fatal injuries, as well as on all other health outcomes. Overall, our results indicate that findings from previous studies are based on very thin empirical evidence, with potentially underestimated standard errors and unobserved confounders. Our results highlight the importance of revisiting research questions using updated methodological tools.

Leaders’ capabilities and organizational efficiency: Evidence from the national taxation bureaucracy in China

Tax authority leaders have a significant impact on organizational efficiency, which is mainly manifested in tax collection efficiency. Based on provincial tax administrative data and data on listed companies from 1998 to 2017, we examine the impact of the capabilities of leaders of the National Taxation Bureaucracy (NTB) on tax collection efficiency. We adopt the fixed effects approach and isolate the individual effects of NTB directors as a proxy of leaders’ capabilities. We find that directors with stronger capabilities enhance tax revenue growth and complete tax revenue tasks by affecting corporate income taxes. The findings suggest that more capable directors are found to severely combat tax evasion and avoidance. Specifically, taxable income approved by the NTB, preferential tax policies and tax auditing have been used to combat tax evasion. We also clarify the boundaries of leaders’ capabilities. We provide supportive evidence for leaders’ individual impact on tax collection efficiency and enrich the study of tax collection and administration.

The Impact of Digital Inclusive Finance on the Sustainable Growth of Income of Herdsmen in China’s Pastoral Areas

The sustainable growth of income for farming households in pastoral areas represents a crucial challenge not only for China but also for other developing nations in the process of transition to ecologically friendly models. The scarcity of assets available for collateral, along with vulnerable production conditions and developmental shortcomings, pose significant barriers to the consistent expansion of herdsmen’s income. This paper analyzes the impact of digital financial inclusion on the income of herdsmen in ethnic minority regions using panel data models from nine major pastoral provinces in China from 2011 to 2022. Through a fixed-effects model approach, the analysis delves into the influence of digital financial inclusion and subjects it to multi-dimensional and robustness tests to ensure the reliability of the findings. Furthermore, the research explores the underlying mechanisms through which digital financial inclusion contributes to income enhancement for herdsmen in these areas, employing mediation effect techniques to provide deeper insights into the relationship between digital financial services and economic upliftment in remote ethnic communities. The research findings indicate that digital financial inclusion has a positive impact on the income of herdsmen in ethnic minority regions. The breadth of coverage, depth of usage, and level of digitalization of digital financial inclusion all play a significant role in enhancing the income levels of herdsmen. In terms of the degree of influence, the impact of digital finance on the income of ethnic minorities follows this order: depth of usage > degree of digitalization > breadth of coverage. Notably, through financial backing that catalyzes a shift in herdsmen’s production methodologies and propels industrial upgrading, there is a profound potential to increase herdsmen’s output efficiency. This, in turn, alleviates the ecological strain on China’s environmentally delicate zones. Moreover, financial backing can condense the breeding periods for herdsmen, thereby ameliorating the ecological degradation associated with excessive grazing in pastoral regions. A mediating-effect analysis reveals that digital financial inclusion can boost economic development in ethnic minority regions by increasing wage income, raising per capita GDP levels, and promoting industrial structure upgrading. This, in turn, leads to an improvement in the income of herdsmen in these regions. This is particularly pertinent in China, where the eco-fragility of pastoral regions coincides with the modest income of herdsmen, underscoring the critical importance of herdsmen’s finance. To foster sustainable progress in these regions, financial backing is imperative to elevate herdsmen’s income and to induce a transformative shift in production approaches and industrial layout, paving the way for the sustainable development of these pastoral regions.

ISLAMIC FINANCIAL INCLUSION AND ECONOMIC GROWTH IN OIC COUNTRIES: PANEL QUANTILE REGRESSION ANALYSIS

This study examines how Islamic financial inclusion contributes to economic growth across different quantiles within the OIC countries. Sarma’s method is used to construct a novel index of Islamic financial inclusion (IIFI) and a quantile regression with fixed effects approach is applied to data spanning the period 2015 to 2020 from 25 OIC countries. The findings reveal that Islamic financial inclusion contributes positively to economic growth in the OIC countries across different segments of the GDP per capita with the impact being consistent across all segments. By expanding the network of Islamic banks and enhancing the technological infrastructure for financial access, policymakers can harness the transformative potential of Islamic finance to promote sustainable economic growth and development in the OIC countries.

Towards environmental impact of inward foreign direct investment: the moderating role of varieties of democracy

PurposeThis paper aims to clarify the relationship between foreign direct investment (FDI), democracy and carbon intensity. This study examines the influence of types of democracy on the relationship between inward FDI and carbon intensity. For this purpose, it uses five varieties of democracy, including a composite democracy indicator as moderating variables.Design/methodology/approachThis study applies the fixed-effects panel quantile regression approach that considers unobserved heterogeneity and distributional heterogeneity using panel data from 160 countries during 1990–2020. By taking into account sudden changes in the volume of inward FDI, an event study is conducted across various sub-samples of democracy to check the robustness of the results.FindingsThe results show that FDI has a significantly negative impact on carbon intensity of the host country in the upper quantiles. In general, different types of democracy have a significant positive impact on carbon intensity across different quantiles. After considering the other factors, including industry intensity, trade openness, green technology, fossil fuel dependency and International Environmental Agreements, there is evidence that all types of democracy moderate the relationship between FDI and carbon intensity, thereby supporting the halo effect hypothesis. In addition, the interaction effects have a significant negative impact on carbon intensity of low- and high-carbon-intensive countries.Originality/valueThis paper offers several contributions to the literature on the effect of FDI and democracy on carbon intensity. This study overcomes the limitations related to the conceptualization and measurement of democracy found in the literature. While prior research has predominately concentrated on how democracy promotes the selection of FDI host-country locations, this study seeks to answer the question of whether democracy type has any effect on inward FDI, thus contributing to improving carbon intensity. Furthermore, this paper analyses the interaction effect on carbon intensity in different countries with different carbon intensity levels separately.

Dynamic cultures, dynamic responses: The impact on corporate cash holdings amid uncertainty

This study investigates the changes in national culture, economic uncertainty, and their joint effects on corporate cash holdings across 58 countries over the period 2004 to 2020. The study also delves into the importance of national culture in amplifying the impact of economic uncertainty in influencing corporate cash holdings. Drawing on three national cultural dimensions, trust-distrust, collectivism-individualism, and duty-joy orientation-based on the European Value Survey (EVS) and World Value Survey (WVS), we employ a panel data model with a fixed effect approach and incorporate the lag of the independent variable to mitigate potential endogeneity issues. Our findings show that transitions in national culture from collectivism to individualism do not significantly decrease corporate cash holdings. Moreover, a cultural shift from distrust to trust does not result in a decrease in corporate cash holdings. Conversely, a move towards a short-term orientation motivates firms to reduce their cash holdings. The interaction between economic uncertainty and collectivism and individualism tends to increase corporate cash holdings. However, there is no difference in the impacts of the three cultural dimensions for financially constrained and unconstrained firms on corporate cash holdings. This study offers significant practical implications, particularly for policymakers in countries where they have strong collectivistic national culture, which may amplify the effects of economic uncertainty.

The impact of homocysteine on patients with diabetic nephropathy: a mendelian randomization study.

Homocysteine (Hcy) has been associated with an increased risk of diabetic nephropathy (DN) in patients, but there is still controversy. This study aims to investigate the causal relationship between plasma Hcy and DN. A Mendelian randomization (MR) study using data from 2 samples was employed to infer causal relationships. The aggregated genetic data associated with Hcy was derived from the largest genome-wide association study (GWAS) to date, involving 44,147 individuals of European ancestry.Data on SNP-diabetic nephropathy, creatinine, and urea nitrogen were obtained from the IEU GWAS database. The analysis method employed a fixed-effect or random-effect inverse variance-weighted approach to estimate effects.Additional analysis methods were used to assess stability and sensitivity. The potential for pleiotropy was evaluated using the MR-Egger intercept test. Using 12 SNPs as instrumental variables, two-sample MR analysis revealed no evidence of a causal relationship between genetically predicted plasma Hcy levels and diabetic nephropathy, as well as creatinine and blood urea nitrogen levels. This finding is consistent with the results obtained from other testing methods. Two-sample Mendelian Randomization analysis found no evidence of a causal relationship between plasma homocysteine levels and diabetic nephropathy, creatinine, or urea.

The impact of labor force aging on agricultural total factor productivity of farmers in China: implications for food sustainability

IntroductionThe rapid aging of the labor force has serious implications for socioeconomic development and poses challenges to food sustainability. Existing studies have focused on the impact of labor force aging on land productivity, but little attention has been paid to the comprehensive capacity of agricultural production, namely the total factor productivity of agriculture.MethodsWe estimate the impact of labor force aging on total factor productivity in agriculture using data from 170,506 sample farm households from the National Fixed Point Survey data from 2003 to 2020. We estimate the results using a panel fixed effects approach and mitigate the endogeneity problem using an instrumental variables approach to ensure the robustness of the estimates.Results and discussionThe results show that labor force aging has an adverse effect on the agricultural total factor productivity of farm households and remains robust after addressing endogeneity and substituting explanatory variables. The aging effect shows significant heterogeneity across different food functional areas with different types of farm households. The negative impact of labor force aging on total factor productivity in agriculture is mainly concentrated in the main grain-production and grain-producing and marketing-balanced areas. We also find that the negative impact of labor force aging is more significant among large-scale farmers. The mechanism analysis finds that the aging of the labor force adversely affects the agricultural total factor productivity by inhibiting technological progress and reducing the efficiency of agricultural resource allocation. These insights, when considered in the light of global trends towards agricultural labor aging, suggest that policy interventions aimed at promoting technological adoption, enhancing resource allocation efficiency, and supporting the transitioning of older farmers may hold promise for maintaining food sustainability and addressing the challenges posed by an aging agricultural workforce in numerous developing nations.

Managerial Ownership and Managerial Ability on Tax Avoidance: Moderating Role of Firm Size

This research aims to empirically investigate the impact of managerial ownership and managerial competence on tax avoidance, along with examining how firm size moderates these relationships. The study utilized panel data linear regression with a fixed effects approach, employing purposive sampling from 87 manufacturing firms in Indonesia spanning the years 2019 to 2021, totaling 261 firm years. The analysis reveals that managerial ownership does not influence tax avoidance, while managerial competence demonstrates a positive association with tax avoidance. Additionally, the findings suggest that neither firm size nor its interaction with managerial ownership and ability significantly affects the practice of tax avoidance. Keywords: firm size, managerial ability, managerial ownership, tax avoidance

Macroeconomic Impacts of Oil Price Fluctuations: Panel Data Evidence from Oil-Importing Developing Countries

This study reconnoiters the impact of oil price fluctuations on the macroeconomic performance of 95 oil-importing countries for the period 1981-2023. Due to an unobserved heterogeneity among the countries, the fixed effect approach of panel data estimation is employed. This approach is advantageous because it controls for the country-specific time invariant characteristics. According to our empirical findings, oil price fluctuations substantially affect GDP and Inflation. However, the coefficient on unemployment remains statistically insignificant. Our findings suggest that governmental policies should focus on reducing oil dependency by promoting renewable energy sources for improved macroeconomic performance and sustainable development.