OECD Countries Research Articles

Innovations in daily commuting - what types of solutions are competitive? European case study.

Innovations drive dynamic changes in daily commuting especially in functional urban areas (FUAs), where transport systems are developed. Innovative solutions are being tested in FUAs, and they not only pose an alternative to conventional transport systems, but can also revolutionize daily commuting in cities. The main aim was to classify the innovation drivers identified in literature and to determine their impact on travel behaviour (TB) in FUAs with a use of expert survey. The following research hypothesis was examined: the level of innovation utilization in daily commuting and its impact on TB is similar in countries with similar levels of economic development. The survey results were processed to (1) create a ranking of innovations in TB in European OECD countries and (2) group countries based on similarity in prioritizing innovations influencing TB, using Ward hierarchical clustering method. As a result, innovative factors were comprehensively identified and classified in six categories.

Overview Indonesia Tax Ratio in According to Political Agenda and Comparison with Another Country

This research was conducted to find out strategies for increasing the tax ratio in Indonesia. The background to this research is that Indonesia has the largest GDP (Gross Domestic Product) in the ASEAN countries, but based on data from the tax ratio of OECD countries, in 2020 tax ratio in Indonesia has decreased from the previous year. The tax ratio in Indonesia in 2019 was 11.59%, while in 2020 it was 10.07%. One of the causes of this is that not all elements of state revenue are included as tax revenue, such as regional taxes.The tax ratio trend in the two governments of the SBY and Jokowi eras tends to decline. The tax ratio achieved in the SBY era was recorded at 13%, while in the Jokowi era it only reached 10.39%. What about the tax ratio agenda in the latest political era in Indonesia and other countries

How does the shift towards services affect renewable energy deployment? Evidence from OECD countries

How does the shift towards services affect renewable energy deployment? Evidence from OECD countries

Wage bargaining structure and political budget cycles: A policy game approach

Utilizing a panel dataset from OECD countries, this study unveils new evidence suggesting that the centralization of wage bargaining plays a significant role in mitigating Political Budget Cycles. To explain this empirical finding, the paper introduces a political economy model based on a policy game framework, encompassing three key agents: (i) an opportunistic government that decides on the level of budget deficits with the objective of enhancing its reelection prospects, (ii) workers/voters who decide on their sectoral affiliations, and (iii) unions that independently negotiate wages with firms. In this model, the opportunistic government has an incentive to run a budget deficit to favor the median voter, who is affiliated with non-tradable sectors. The mechanism emerges from the impact of debt-financed public spending on relative prices, and consequently, on relative wages between non-tradable and tradable sectors. Wage centralization mitigates the political incentive of opportunistic governments by attenuating the responsiveness of sectoral wages to sectoral prices, thereby pushing down budget deficits towards a socially more optimal level.

An investigation on immigration inflows, GDP productivity and knowledge production in selected OECD countries: A panel model analysis

An investigation on immigration inflows, GDP productivity and knowledge production in selected OECD countries: A panel model analysis

Fiscal policy and public debt: Government investment is most effective to promote sustainability

This paper aims to quantify the effects of government expenditure and its components, i.e. government consumption and investment, on output and public debt sustainability. The Local Projections approach is applied to a dataset of 14 OECD countries considered for the 1981–2017 period. Fiscal policy shocks have been identified using the Blanchard and Perotti strategy and the narrative approach based on fiscal consolidation episodes. Multipliers of total government spending are above the unit and government investment multipliers are higher than consumption ones. Although all fiscal policy shocks reduce the public debt-to-GDP ratio, government investment is the most effective tool for promoting public debt sustainability.

Trust in the pension system and housing investment

PurposeThis research contributes to the existing literature on the connection between trust and investment activities by exploring the effect of trust in the retirement system on dwelling investments.Design/methodology/approachThis study utilizes data including 28 OECD countries from 2009 to 2020, and employs panel fixed effects and GMM estimators.FindingsThe analysis reveals a negative relationship between trust in the retirement system and investment in dwellings. Notably, this is found to be more evident in countries that promote neo-liberalized welfare systems.Practical implicationsThe implications of our results are particularly relevant for policymakers and international construction firms.Originality/valueThe primary contribution of this paper extends the “trust–pension investment behavior” nexus. We explore whether individuals with diminished trust in the retirement system consider investing in the property market as an alternative means to safeguard their financial well-being during retirement.

Navigating Socio-Economic Forces: Understanding FDI Patterns in OECD Economies

This study investigates the FDI patterns’ ecosystem within the OECD regions. The goal is to understand the multifaceted interaction of socio-economic mechanisms driving such patterns. Using a quantitative survey that incorporates patterns of the past and dynamics of the present, the research paper discusses the role that FDI flows in OECD countries have played throughout history. The way study employs OECD data, national data, as well as relevant international institutions such as the UNCTAD and the World Bank is the methodological framework. The analysis of both qualitative and quantitative data underpins the study through the methodology which pays particular attention to the correlation analysis, linear regression, and multiple regression within its framework. The research paper was based on a sample of 38 economically diverse OECD member states and looks into what factors promote foreign direct investment inflows and outflows, and what these could be, for instance, the economic size, level of industrialization, and how the trade is shared across regions. Besides, the study also points out some areas that would be worthy of adding to the list of questions to explore, for example, digital transformation, its impact on the trends of FDI, and the significance of FDI in regional economic integration. These results point to the fact that study should pay more attention to emerging socio-economic conditions and research have to adapt them when designing the policies and future strategies within the framework of international economic relations.

Brain gain and country's resilience: A dependency analysis exemplified by OECD countries

Research background: In the light of growing demand for highly skilled workers, driven by rapid changes in the labour market and business environment, the ability to attract the talented determines not only business performance, but also macroeconomic development prospects. This stimulates national governments to create positive conditions for the development and use of the human capital of migrants. One of the most important factors of brain gain can be country stability as a sign of a comfortable environment for the realisation of intellectual potential. Purpose of the article: The study aims to investigate the links between the factors of country’s resilience and brain gain, including its partial indicators. Methods: For a comprehensive assessment, migration indicators were used by categories of talented migrants: highly educated workers, foreign entrepreneurs, university students and start-up founders that we integrated into an integral index of intellectual migration. The data was collected for OECD countries for 2023. The authors used the methods of statistical and correlation-regression analysis, economic-mathematical modelling in the GRETL software environment. Findings & value added: Research has shown that the components of country’s resilience (especially Economic resilience and Supply chain) have a positive effect on brain gain. Considering the partial indicators of brain gain, it is found that resilience in the country of destination has the greatest influence on the migration decisions of highly educated workers and foreign entrepreneurs, i.e. migrants with a positive experience of economic activity and entrepreneurial capital, which, in turn, strengthens the resilience and competitiveness of countries. Such conclusions are important for the improvement of brain gain management programs in terms of the development of the environment for the attraction and retention of talents.

Technology Oriented Struggle Against Climate Change in Transportation Sector: An Empirical Investigation

The transportation sector is one of the most important sectors in which greenhouse gas emissions (GHG) are the highest, thus causing the global warming problem to rise. One of the most effective and international solutions to this problem is considered to be a technology-oriented struggle, and the development of green technologies is encouraged by global authorities. The study aims to investigate the success of the technology-oriented struggle against global warming in the transport sector. In analyses, data on transportation-related greenhouse gas emissions, the number of patents (transport-related climate change mitigation technologies), trade openness, and GDP per capita of 12 OECD countries years between 1999-2017 were used. To identify the long-run and short-run relationship among variables, the Cross-Sectional Autoregressive Distributed Lags Estimator (CSARDL) and also the Mean Group (MG), Augmented Mean Group (AMG), and Common Correlated Effects Mean Group Estimators (CCE) were applied. According to the estimators' findings, no evidence was found that the number of patents and trade openness affected greenhouse gas emissions, but it was determined that GDP positively affected greenhouse gas emissions. As a result, it can be said that the technology-oriented struggle against climate change in the transportation sector alone isn't sufficient to reduce transportation-related GHG emissions.

Measuring Inflation During the Pandemic with the Benefit of Hindsight

AbstractThis study has adopted the actual household expenditure data from the national accounts to construct a true inflation rate (using the Fisher index) and found that the official inflation rate in the 33 OECD countries was an overestimate of true inflation for 23 and underestimate in 10 countries in the first wave of the COVID-19 pandemic. The result obtained for the countries where true inflation was higher than the official rate in this study matches the results obtained by Cavallo (Inflation with covid consumption baskets, 2020) and Reinsdorf (COVID-19 and the CPI: Is inflation underestimated?, 2020). However, a significant difference has been detected for the countries where the official inflation exceeds the true measure in this study. The core reason behind the discrepancies is in the use of appropriate expenditure weights. This suggests caution in using credit-card based expenditure data when spending behaviour has changed dramatically.

Terrorism: Interpol Global Policing Goals and SDGs

In this paper, we determined how well an OECD country is achieving the Received Interpol goals with respect to the SDGs pertinent to them. We found that the Scandinavian countries were at the top in the achievement. In combatting terrorism in general, we found that the Scandinavian countries were at the top. We also show that the fuzzy similarity measure of the ranking of countries used by the SDGs relevant to terrorism compared with SDG 16 alone was high. Let [Formula: see text] and [Formula: see text] be rankings of a set [Formula: see text] and [Formula: see text] and [Formula: see text] the associated fuzzy subsets, respectively. Consider the similarity measures [Formula: see text] and [Formula: see text] [J. N. Mordeson and S. Mathew, Journal of Mahani Mathematical Research 13(1) (2024) 279–291]. Suppose that [Formula: see text] and [Formula: see text] are known, but [Formula: see text] is unknown. It is shown in the reference by J. N. Mordeson and S. Mathew [Mathematics of Uncertainty for Coping with World Challenges, Climate Change, World Hunger, Modern Slavery, Coronavirus, Human Trafficking (Springer, 2021)] that if [Formula: see text] is near [Formula: see text] then [Formula: see text] is near [Formula: see text] In this paper, a similar result for [Formula: see text] is shown.

Comparison of information and communication technologies used in OECD countries by multi-criteria decision making methods

Comparison of information and communication technologies used in OECD countries by multi-criteria decision making methods

Analyze the effect of energy efficiency, natural resources, and the digital economy on ecological footprint in OCED countries: The mediating role of renewable energy

Considering the urgent target of carbon neutrality and environmental sustainability, this paper analyzes the nexus of energy efficiency, natural resources, and the digital economy on ecological footprint in OECD countries from 2002 to 2020. We apply the Method of Moments Quantile Regression (MMQR) to evaluate the long-run relationship of variables and check the mediating effect of renewable energy between the digital economy and ecological footprint. Through a series of empirical analyses, the primary results are as follows. First, it has been discovered that energy efficiency and natural resources contribute to decreasing ecological footprint. Second, the digital economy exerts a detrimental impact on the lowering of the ecological footprint. Third, the mediating outcome suggests that the digital economy cannot promote an ecological footprint decrease with the development of renewable energy. Based on the findings, we also recommend some ideas for OECD countries’ economy, energy, and environmental improvements.

TESTING MEAN REVERSION OF STOCK PRICES IN OECD COUNTRIES: EVIDENCE FROM FOURIER THRESHOLD UNIT ROOT TEST

Researchers focus on whether stock prices have a unit root, that is, whether they contain a random walk process. If stock prices have a stationary process, that is, if they return to the mean, the effects of shocks are temporary, and it is interpreted that they will return to the trend path over time. If stock prices have transitory shocks, it allows for the prediction of future movements based on past behavior in terms of investment. This study investigates whether stock prices revert to the mean and thus have a random walk process. For this purpose, the Fourier Threshold Unit Root (FTUR) test based on the test methodology of Caner and Hansen (2001) for the period January 1990–January 2021 for 26 OECD countries is applied. The FTUR test takes into account both structural breaks and nonlinearities. The purpose of using Fourier functions to account for structural changes is that they are not affected by the number, location, or shape of breaks. Thus, the power of the test increases. According to the results of this test, stock prices in Austria, Canada, Germany, Italy, New Zealand, Spain, and the UK are linear. Therefore, Fourier Augmented Dickey-Fuller (FADF) unit root analysis was performed for these countries. The FTUR test was performed in other countries. According to the results of FTUR and FADF unit root tests, stock prices are found to contain unit roots in some countries except Italy. In some countries, stock prices have a partial unit root structure. In other words, the effects of shocks are permanent, and it is concluded that future returns cannot be predicted in these countries with the random walk process.

Valuating the efficiency of social security and healthcare in OECD countries from a sustainable development

Under the goal of sustainable development, coping with the increase in social security and healthcare expenses caused by population aging is becoming increasingly important, but it is rare in the literature to evaluate the impact of social security efficiency on healthcare efficiency. This research uses the dynamic SBM two-stage model to observe the efficiencies of social security and healthcare in OECD countries. There are two findings as follows. First, the higher social security efficiency is, the better is the healthcare efficiency of countries with lower per capita GDP. Second, higher social security efficiency of National Health Service (NHS) countries denote better healthcare efficiency. When the financial source of the social security system is taxation, then it is more likely to bring higher efficiency to healthcare.

Debt Puzzle: A Comparative Analysis of Public Debt’s Impact on Production Efficiency across OECD Countries

Debt is a fundamental component of modern economic systems. It serves as a source of financing for government, business, and individual projects. Many earlier studies concentrated on the direct relationship between debt and economic performance using different econometric methodologies. This work investigates the effect of debt on production efficiency, extracted from the estimated production function. Unlike previous econometric approaches, we employ a production stochastic frontier analysis (SFA) on data for 18 OECD countries spanning from Quarter 1, 2015, to Quarter 3, 2021, to capture the short-run effect of debt on the production efficiency and, thus, output growth. The results show that, in the short run, as debt increases by $1 billion, efficiency increases by 0.04%. Additionally, we found that the most indebted countries are the most efficient countries. In our sample, those were the UK and France. Furthermore, the average efficiency for the 18 OECD countries was 70.07.

The Effects of Schooling Rates and Income Levels on Energy Consumption in Households: A Panel Data Analysis on OECD Countries

AbstractWhile energy consumption affects many different areas, it is also affected by many different factors. Therefore, policies aiming to reduce energy consumption gain a multidimensional feature. Income level and education play an important role in the success of these policies. Because as the income and education levels of individuals increase, the success rate of policies aiming to reduce energy consumption is higher. In this way, while energy consumption is reduced or used more efficiently, environmental problems are prevented. In this study, the effects of average schooling rate and income level on energy consumption in residences were investigated. For this purpose, the panel data analysis was used within the scope of the annual data of 19 OECD member countries for the 1990–2019 period. As a result of the analysis, a cointegration relationship was detected between the variables and long-term coefficients and error correction coefficient and short-term coefficients were obtained with the Augmented Mean Group (AMG) estimator. The findings show that the long-term average schooling rate has a negative effect on energy consumption in households, but income level has a positive effect on a panel basis. On the other hand, it was also found that the error correction mechanism works and that the income level has a positive effect on the energy consumption in the households in the short term, but the average schooling rate does not have a significant effect on the energy consumption in the households in the short term.

Testing the relationship between housing prices and inflation in the OECD countries

Testing the relationship between housing prices and inflation in the OECD countries

The role of green growth and institutional quality on environmental sustainability: A comparison of CO2 emissions, ecological footprint and inverted load capacity factor for OECD countries

Green growth is of great importance in terms of solving environmental problems and achieving sustainable development goals. However, the existing literature has not investigated how green growth affects environmental degradation and environmental sustainability variables. In light of this gap, this study aims to analyse the impact of green growth and institutional quality on CO2 emissions, ecological footprint and inverse load capacity factor in OECD countries by constructing three different models. The results of the analysis indicate that (i) green growth exerts a significant mitigating and differentiating effect on CO2, ecological footprint and inverted load capacity factor in the long run. This is evidenced by a 1% increase in green growth reducing CO2, ecological footprint and inverted load capacity factor by 0.563%, 0.373% and 0.198%, respectively. (i) The impact of green growth on CO2 and inverted load capacity factor in the long run is negative and statistically significant; (ii) the impact of green growth on CO2 and inverted load capacity factor in the short run is negative and statistically significant; (iii) the impact of institutional quality on deterioration is positive and significant in the long run; (iv) the impact of population on deterioration and sustainability is significant and mixed. The findings indicate that decision-makers in OECD countries should review green energy policies when setting the sustainable development goals, as environmental sustainability is more challenging than reducing pollution.