Household Final Consumption Research Articles

Exploring the Tourism-Poverty Alleviation Nexus in the Brics Groupof Nations

The tourism-poverty alleviation nexus is becoming an increasingly significant subject of academic inquiry within the tourism economics discourse. Using time series data from the World Bank (1995–2017) in a P-ARDL model, the present study explores the relationship between tourism (receipts from exports, the travel subsector, hospitality and accommodation subsector) and poverty alleviation (final household consumption) with tourism arrivals as the control variable within the context of the BRICS group. The results suggest that receipts from the travel subsector and exports met the a priori expectation – positively influencing poverty alleviation within BRICS nations in the long run. Contrastingly, receipts from the hospitality and accommodation subsector did not meet the a priori expectation of a positive sign, with the results indicating statistical insignificance in the long run. However, receipts from the hospitality and accommodation were found to only influence poverty alleviation in the short run. Relatedly, the results suggest that increases in consumption associated with growth in tourism arrivals did not influence poverty in the BRICS. The results point to the heterogeneity of the influence of tourism on poverty alleviation, whereby certain dimensions of tourism contribute to poverty alleviation in the long run and others do so in the short run. Based on these findings it is recommended that BRICS countries harness their tourism potential and promote intra-BRICS tourism to maximise the positive impact of travel and tourism export receipts on household consumption, which catalyses poverty alleviation.

Immediate and Long-Term Impacts of Africa – China Trade Intensity on Poverty Incidence in Africa

China remains a key international player in Africa, contributing much more than other countries to the trade and capital inflows to Africa. How these inflows have contributed to the prevailing poverty incidences and severity in Africa remain an empirical issue. The study investigated the short and long-run impact of Africa-China trade relations on poverty incidences using data from 1990 to 2017 for 20 African countries. To capture the linkage, the standard endogenous growth model was remodified to link poverty to trade between the selected African countries and China. The model was estimated using the dynamic and fully modified OLS techniques after establishing the time-series properties of the variables. The result of the analysis showed that the increased trade intensity between Africa and China has been beneficial to Africa and the evidence also confirmed that it is sustainable even in the long run. Export despite its meager size was a more significant contributor to poverty reduction than imports in the long run. It was also established that increased per capita income has greater significant impacts on poverty reduction in the long run. However, household final consumption expenditure was a major setback to poverty reduction in Africa both in the short and long run, Indeed, not only it aggravates poverty, it overwhelmed the alleviating potentials of both trade intensity and increase per capita income. The policy implication of the result is that better trade policy for increased exportation and increased domestic productivity in Africa are necessary for more improved efficiency of local production and increased per capita income over a long period

Dampak Pertumbuhan PDB Perkapita, Pengeluaran Rumah Tangga Perkapita, Perdagangan Terbuka dan Laju Populasi Perkotaan Terhadap Konsumsi Energi Akhir Perumahan

The purpose of this study is to investigate the impact of GDP per capita, household final consumption expenditure per capita, openness trade, and urban population rate towards residential final energy consumption in Indonesia using annual data over the period 1977-2016. We applied is unit root test, cointegration test, and estimation of short and long term relationships based on the Autoregressive Distributed Lag (ARDL) procedures. Our results show that GDP per capita, open trade, and urban population growth rate have a significant impact on residential final energy consumption, while household final consumption expenditure did not influence the growth of residential final energy consumption in Indonesia. Based on these findings, we concluded that the growth of GDP per capita, household consumption expenditures, openness trade and the rate of urban population are relevant indicators to predicting the growth rate of residential energy consumption in Indonesia.

Factors Shaping Cow’s Milk Production in the EU

The milk market in the European Union (EU) is adjusting rapidly to the removal of dairy quotas. The most important changes include increased milk yield per cow, increased total milk production, decreased number of cows, and the decreased milk consumption. The main aim of the paper is to examine the milk production changes in the EU. We investigated the dynamics of changes in farm milk production during the period from 1998–2017 in the EU. Moreover, we investigated the impact of the removal of quotas on the production of milk on farms in the EU countries for the period from 2015–2017. Milk production in the EU increased from 151 million tons in 1998 to 165 million tons in 2017 (a 10% increase). A multi-variate regression model was to test which explanatory variables have an impact on milk production in the EU. The most important factors were a gross domestic product, final household consumption expenditure (current prices, million euro), and population (number).

Effect of Inflation on Household Final Consumption Expenditure in Nigeria

Effect of Inflation on Household Final Consumption Expenditure in Nigeria

UNEMPLOYMENT AND ECONOMIC GROWTH IN SOUTH AFRICA: A RE-EXAMINATION

In this study, we have empirically examined the impact of unemployment on economic growth in South Africa, using time series data from 1994Q1 to 2017Q4. The study made use of the error correction model in determining the relationship between unemployment and economic growth. In addition to economic growth and unemployment, four control variables were added to the model. These were government expenditure, inflation, investment and household final consumption expenditure. Using the error correction model (ECM), the results of the study reveal that there is a negative relationship between unemployment and economic growth in South Africa. An increase in unemployment in South Africa would reduce the rate of economic growth. Based on the research findings, where unemployment was found to have a negative impact on economic growth in the study country, the South African authorities responsible for economic policy are recommended to formulate and enhance policies that aim at reducing unemployment in the country.

Does Financial & Social Development are Important for Economic Growth? An International Scenario

Financial and Social Development plays pivotal role in the economic growth of nations. Developed countries have strong financial and social infrastructure. This study focuses on the social and financial development in relation to economic growth of developed, developing and frontier economies. Gross Domestic product (GDP) per capita used as dependent variable. Domestic credit, market capitalization, turnover ratio, household consumption, foreign direct investment, capital formation, Co2 Emission and trade openness are used as independent variables. government expenditures on education and current health expenditures are use as social variables. Unemployment and inflation rate also use as control variables. Pooled OLS (ordinary least squares), fixed effects and random effects models are used to check the relationship among variables from 2001-2017. Results show positive and significant relation between Gross Domestic product (GDP) Domestic credit, education expenditures and health expenditures in case of developing countries. Market capitalization, turnover ratio, foreign direct investment, and trade openness have a positive but insignificant relationship. Co2 Emission, inflation and unemployment rate have negative and insignificant relation with GDP per capita. In advanced countries Inflation rate trade openness and FDI have positive and significant relation with GDP per capita. Domestic credit, market capitalization, turnover ratio, household final consumption and Co2 Emission have a negative relation with GDP per capita. Education and health also have a negative and insignificant relation with GDP per capita. In Frontier economies there is a positive and insignificant relation of market capitalization, FDI, Co2 Emission and health expenditures with GDP per capita. capital formation, turnover ratio, household consumption, trade openness has negative and significant relation with per capita. Education expenditures have positive and significant relation with GDP per capita. Co2 have positive but insignificant relation. Inflation and unemployment rate have negative but insignificant relation with GDP per capita.

MENGUKUR SOCIAL TRANSFER IN KIND (STIK) DAN KONTRIBUSINYA TERHADAP PENGELUARAN KONSUMSI RUMAH TANGGADI SULAWESI BARAT TAHUN 2011-2017

Disposable income (Disposable Income) is considered not enough anymore to be used to measure and compare the welfare level of a region. This is because the disposable income indicators do not accommodate the effects of social transfers in Kind (STIK) of goods and services provided by the Government and Non-Profit Institutions Serving for Households (NPISH). Therefore, a growing number of statistical institutions and economists recommend doing STIK calculations and adding them to the portion of household income to create more accurate new income measures. The problem is, the measurement of social transfers (STIK) has not been done much yet and there are no similar research yet conducted in Indonesia. This study aims to (1) provide alternative STIK calculations with the new method of the West Sulawesi Gross Regional Domestic Product (GRDP) component, and (2) Assess the STIK efficiency level in supporting household economies in West Sulawesi. The results of this study indicate that the total value of STIK in West Sulawesi in 2011-2017 ranged from 1.30 to 1.98 trillion rupiah. In addition, districts with STIK highest efficiency levels in providing additional allocations to household consumption expenditures which are calculated through the proportion of STIK to total final household consumption expenditure are Mamuju Regency with a percentage of 18.8 percent.

Capital Markets & Economic Growth: A Tale of BRICS Countries

The GDP growth of any economy acts as a proxy of the overall growth of that economy. This paper attempts to investigate the significance of economic growth based on economic factors. Several factors contribute to the economic growth. Moreover, foreign direct investment (FDI) bridges the gap of saving and investment in the capital formation and thus supports for economic growth. In this paper, we examine the significant effect of the economic indicators on the GDP growth and the extent of influence. The focus of this paper is also to check if the significant economic indicators of GDP growth is consistent across the economies. We consider the data of fifteen economic indicators for BRICS countries over a period of 1990 to 2018. For this purpose, we employ Karl Pearson’s correlation and regression model. The result reveals that final consumption expenditure, gross capital formation, general government final consumption expenditure affect the GDP growth of Brazil, gross capital formation, general government final consumption expenditure affect the GDP growth of Russia whereas the foreign direct investment, gross capital formation (annual % growth), gross savings (% of GDP) affect the GDP growth of China. The household final consumption expenditure per capita growth and gross capital formation affect significantly the GDP growth of India. Final consumption expenditure, household final consumption expenditure, gross savings (% of GDP), affects South Africa’s GDP growth. The result of this paper has important implications for the policy makers.

The out of pocket payments in low and middle-income countries and the affecting factors: a systematic review and meta-analysis

Introduction: The out of pocket (OOP) payment is the most important source of health system financial support in low and middle-income countries (LMICs); therefore, considering and controlling health expenses are pivotal issues. The present study aimed to determine the households OOP payments in LMICs.Method: Electronic databases, including Web of Science, Scopus, and PubMed were searched systematically in September 2015. Relevant papers on OOP payment in LMICs were included in the study. OOP payment was estimated as a percentage of Gross Domestic Product (GDP) per capita and household final consumption expenditure per capita in every country.Results: Seventeen papers out of 3714 were included in the study. Eight studies were conducted in low-income countries, eight in middle-income countries, and one in both low and middle-income countries. The mean OOP payment as a percentage of households final consumption expenditure in LMICs was 0.67(α= 0.000, CI: 0.35-1.003) and the mean of OOP payment as a percentage of GDP in these countries was 1.65(α=0.000, CI: 1.57-1.72).Conclusion: The households in LMICs face high levels of OOP payment. Therefore, many challenges must be overcome in financial support of health sectors. Health system policies and strategies are necessary to reform interventions in financing resources and purchasing health care services.

Uncovering the effects of external demand on China’s coal consumption: A global input–output analysis

Abstract China, the world’s largest exporter of goods, burns nearly half of coal worldwide. Moreover, the main fuel source of global carbon emissions is still coal. Therefore, controlling China’s coal consumption is critical to global emissions reductions. Existing production-based accounting principles emphasize on the direct coal use within the geographic territory, while ignoring indirect use driven by external demand in worldwide trading. Through measuring mainland China’s external-demand coal consumption with multi-regional input-output model and decomposing key factors with structure decomposition analysis, this work is aimed to systematically investigate how external demand affects the direct and indirect coal consumption in mainland China. The results show that mainland China is still a net exporter of embodied coal, which means that coal consumption of its own country to meet external demand is much higher than that used abroad to meet final domestic demand. Furthermore, in mainland China’s external-demand consumption, intermediate goods exports account for a large proportion. As for sectoral details, “petroleum, chemical and non-metallic mineral products”, “electricity, gas and water” and “metal products” are top three export departments; as for regional details, the United States, Japan, Hong Kong and Germany are major demanders. Among the composition of external-demand consumption, “household final consumption” consumes the most mainland China’s embodied coal, followed by “gross fixed capital formation”. The decomposition results indicate that the flourishing global intermediate goods trade and the large-scale transfer of external demand to mainland China have become the main impetus to promote the growth of mainland China’s external-demand embodied coal consumption, while the decline in mainland China’s coal use intensity has effectively suppressed this growth. Controlling external-demand coal consumption provides a new perspective for China to control the total amount of coal consumption. This work also provides a reference of the research framework to investigate coal consumption in export-oriented developing economies.

Fixed Investment in Russia in 2018

Macroeconomic situation in 2017–2018 was marked by the outstripping growth rates of fixed investments relative to GDP performance and final consumption of households. In 2018, amid fixed investments increase by 4.3 percent, GDP growth constituted 2.3 percent relative to the corresponding period of the previous year. However, despite the upward trend of fixed investments seen in 2017–2018, the economy has retained the impact from the acute investment crisis of 2014–2016. Vis-a-vis pre-crisis 2012 fixed investments registered in 2018 came to merely 97.3 percent and the construction work volume to 95.7 percent.

Analysis of carbon tax efficiency in energy industries of selected EU countries

A carbon tax is one of economic policy instruments of environmental protection supposed to contribute to the reduction of greenhouse gas (GHG) emissions. A functional carbon tax aims at incorporating costs for elimination of environmental harm into the pricing decisions. In terms of global climate change, the carbon tax is usually imposed on the production, distribution or consumption of carbon-content fossil fuels. The main aim of the study is to evaluate the carbon tax environmental effectiveness in the energy industries of selected EU countries, namely Sweden, Finland, Denmark, Ireland and Slovenia. To achieve the principal research objective, the multiple panel regression method for the selected variables was used, the synergy of other environmental policy tools being taken into account. Control variables employed were emission allowance price, household final consumption expenditure, corporate investments, solid fuel consumption and renewable energy consumption. The analysis results suggest that the carbon tax in the energy industry is environmentally efficient, an increased tax rate allowing to reduce GHG production, which is statistically significantly affected by the consumption of fossil fuels. Based on the estimated partial regression coefficient (−0.01158), raising the carbon tax by one euro per tonne can cut annual per capita emissions by 11.58 kg.

Forecasting Philippine Household Final Consumption Expenditure on Education Using Discrete Wavelet Transformation on Hybrid ARIMA-ANN Model

Objective: This study conveys a forecast of household final consumption expenditure in education of the Philippines from 1st quarter and 4th quarter of 2023. Methods/Analysis: The household final consumption expenditure in education data was obtained from the Philippine Statistics Authority which was part of the National Report for the 1st quarter of 1998 up to the 4th quarter of 2018. The data were forecasted using ARIMA, ANN, Hybrid ARIMA - ANN, and the proposed Discrete Wavelet Transformation using Daubechies filter on the Hybrid ARIMA - ANN. Findings: The forecasting accuracy of the model for a 1 year and 5 year forecast was compared with ARIMA, ANN, and Hybrid ARIMA - ANN through the value of its individual Mean Squared Error, Root Mean Squared Error, and Mean Absolute Percentage Error. It was shown that the proposed DWT using Daubechies filter on Hybrid ARIMA-ANN has an MSE of 0.0009, RMSE of 0.0304, and MAPE of 0.1750 for 1 year forecast and an MSE of 0.0004, RMSE of 0.0194, and MAPE of 0.1167 for the 5 year forecast. It was revealed that the proposed model has the best forecasting performance comparing to ARIMA, ANN, and Hybrid ARIMA - ANN. Novelty/ Improvement: For the Department of Education of the Philippines, preparations and plans can be develop to cope up with the forecasted expenditure on education. For the citizen, the result of this research will give awareness on the movement of expenses in education and will let them prepare for it. Other forecasting models and filters on DWT can be utilized on future works which may improve the results of this study. Keywords: Daubechies Filter, Discrete Wavelet Transformation, Education, Household Expenditure, Hybrid ARIMA-ANN, Time Series Forecasting

DAMPAK PEMBANGUNAN EKONOMI, PENGELUARAN RUMAH TANGGA, DAN KETERBUKAAN PERDAGANGAN TERHADAP KONSUMSI ENERGI FINAL DI INDONESIA

This study investigates the impact of economic growth on three main development sectors, household final consumption expenditure, and trade openness towards the growth of final energy consumption in Indonesia using annual data for the period 1972-2016. We applied autoregressive distributed lag (ARDL) procedures which consist of stationarity test, cointegration test, as well as estimation the short-term and long-term relationships. The cointegration test revealed existence cointegrationrelationship among the variables in the model. In the short-term and long-term model, our results indicated that the growth of value-added in agriculture sector and industry sector, household final consumption expenditures, and trade openness in the short-term and long-term have a significant effect toward final energy consumption in Indonesia, while the growth of value-added in the service sector only given a short-term effect toward final energy consumption in Indonesia. Based on theseresults, it can be concluded that sustainable economic development in Indonesia needs to be accompanied by the development of new and renewable energy in order to fulfil domestic energy supply which is predicted to continue to increase rapidly in the future.Keyword : final energi consumption, economic development, household final consumption expenditure, trade openness, autoregressive distributed lag modelingJEL Classification : D1, E21, F14, O13, Q43.

Role of Advertising Expenditure as an Influential Non-traditional Regressor in Russia’s Money Demand Specification

The term advertising refers to the strategy that affects consumer behaviour and induces higher household final consumption expenditure (HFCE), which is associated with incredibly demanding for money upon transaction usages and a reduction in search costs. The model of money demand that is stable, reliable and well defined is crucial for central banks in formulating their monetary policy to minimise the gap between the supply and demand of money. Hence, this paper examines the influence of expenditure in advertising (ADEX) towards the level of demand for money among the households in Russia. An approach known as Autoregressive distributed lag (ARDL) is opted to model the money demand function (MDF) of Russia and nine years of quarterly data from 2008 to 2016 have been used in the estimation. Empirical findings reveal that ADEX not only positively influences the Russian’s money demand in long term, its MDF also becomes more superior when the ADEX has been added. As such, this study suggests that ADEX can be taken into account as a non-traditional explanatory variable in the formulation of a stable and well-specified MDF for the case in Russia.

The Discussion on Input – Output Framework Extended for Analyzing on Relationship between Demographic and Economic

So far, many studies on economic structure have been proposed, Studies on the relationship between demographics and communication economics basically consider changes in age structure, leading to changes in saving and investment capacity. In Miyazawa's demographic-economic model, the focus has been on quantifying the relationship of final consumer groups and corresponding income groups. This study tries to establish the relationship between age and output and income. This study tries an attempt to extended Miyazawa’s model which gross capital formation at columns and operating surplus at rows. That means the input – output system was not only extended aging group at consumption of employees at rows and final household consumption at columns, but alsoadd to gross capital formation at columns and total income of producers (operating surplus and exogenous income) at rows. In this system, it is allowed to consider changing population structure which not only affects economy through saving or investment but also the structure of final consumption by age also spreads to output and income. So, in this research is not only this related inter-sartorial at first-time distribution for considering but also the impact of demographic to economic activities and re-distribution income follow by type of aging group.

The Impact of Migrant Remittances on Economic Growth in Arab Countries

<p><em>The potential role that workers’ remittances are likely to play in promoting economic growth, especially in Arab countries, is currently attracting considerable attention. </em><em>These remittances have an impact on the remitting economies as well. </em><em>The Gulf region is considered one of the top sending countries of migrant remittances. In this study, empirical analysis is carried out with panel techniques using data over the last three decades for six Arab countries. Our results show that migrant remittances have a positive and significant impact on economic growth. This relationship is also significant when we use dynamic panel data. An indirect effect of remittances on economic growth is pointed out especially via the investment and the household final consumption expenditure channels. </em></p><p><em>Policymakers in Arab countries should take appropriate policy actions to increase the outflow of workers. Developed capital markets, as well as a sound macroeconomic policy environment, would provide incentives for sustainable remittances transfers.</em></p>

The Convergence of Food Expenditures in the European Union Countries – a Spatio‑Temporal Approach

The paper presents the analysis of the convergence of household final consumption expenditures on food in the European Union countries in the period of 1999–2015, considering spatial and spatio‑temporal tendencies and dependencies. The aim of this research is to verify whether space significantly influences the convergence of the considered process. The subject of the investigation is the share of household final consumption expenditures on food in total final consumption expenditures of European countries. Spatial and spatio‑temporal tendencies and dependencies are surveyed using the conception of spatial and spatio‑temporal trends and spatial autocorrelation. The convergence of the process is investigated with the use of β‑convergence models for panel data (also in the spatial terms). Absolute and conditional convergence approaches are applied. For the conditional approach, the models are expanded to incorporate the influence of additional determinants, including space, disposable income and the level of food prices.

The dynamics of household final consumption: The role of wealth channel

Exploring dynamics of household final consumption is an important concern for policy-makers. Turkey had witnessed various financial shocks and crises over the last two decades. These turbulent economic periods affected consumption behaviour and therefore, other macroeconomic variables. In this paper, we examine the linkage between household final consumption and wealth in Turkey, arising from equity and housing market channels over the period from 1998 Q1 to 2016 Q2. We employ ARDL and FMOLS models in order to analyse long-term relationship and then, variance decomposition and impulse response analysis are used for verifying the effects of shocks. The results suggest that income, credit and housing wealth are positively, interest rate and equity market wealth are negatively associated with consumption. Variance decomposition and impulse response analyses imply that interest rate driven shocks may cause to a decline in asset prices and so aggregate consumption through consumption-wealth channel. These evidences may be beneficial for policymakers to understand the role of interest rate and asset prices on the consumption-wealth channel in Turkey.