Panel Of Countries Research Articles

Resource curse, energy consumption, and moderating role of digital governance: Insights from South Asian countries

This study investigates the relationships between the resource curse, energy consumption, and the moderating role of digital governance within the context of South Asian countries. By employing a robust analytical framework, the study delves into how digital governance can potentially mitigate the adverse effects of the resource curse while influencing energy consumption patterns. It employs Method of Moment Quantile Regression (MMQR) on south asian countries panel from 2003 to 2022. The findings report detrimental impact of natural resources rent on economic growth, confirming resource curse hypothesis in low and high growth countries. Digital governance has a positive and significant impact at middle and higher quantiles. The joint influence of natural resources rent, and digital governance is associated with lower economic growth. It imply that digital governance doest not decreases the negative effect of natural resources rent on economic growth. Energy consumption contributes to higher economic growth from lower to higher quantiles. The interaction of digital governance and energy consumption has significant and positive impact on higher quantiles, suggesting that digital governance enhances energy consumption efficiency. These findings suggest valuable policy suggestions.

The Impact of Fintech on Economic Growth: Evidence from Panels of Turkic and Southeast Asian Countries

The Impact of Fintech on Economic Growth: Evidence from Panels of Turkic and Southeast Asian Countries

Impact of Account, Transparency, and Accountability Indicators on Economic Growth: Evidence from South Asian Countries

This study examines the intricate relationships between Account, Transparency, and Accountability indicators and GDP growth across a panel of countries, focusing on the Current Account Balance (CAB), Net Capital Account (NCA), Net Financial Account (NFA), CPIA Transparency Rating, and Voice and Accountability (VA). Drawing on economic theory and empirical analysis, we investigate how these variables influence Economic (GDP) growth dynamics. Theoretical underpinnings suggest that positive CAB reflects trade surpluses, contributing positively to GDP through increased economic activity, while NCA inflows stimulate long-term productivity gains. Conversely, negative NFA indicates potential adverse effects on GDP from capital outflows. Empirical findings using fixed effects, random effects, and Feasible Generalized Least Squares (FGLS) regression reveal significant associations: positive CAB and NCA correlate with higher GDP growth, whereas NFA shows a negative impact. CPIA and VA, while important for governance, do not directly affect GDP growth in this context. This research contributes by providing nuanced insights into the drivers of economic growth, informing policy strategies for sustainable development and institutional enhancement.

Income inequality and complexity of the productive structure: New evidence at the world level

This paper investigates if the complexity of a country's productive structure can help explain variations in income inequality. We use country panel data on 126 countries from 1995 to 2018 and approximate a country's productive structure through the Economic Complexity Index and income inequality from the World Income Inequality Database. Our results found that the relationship between economic complexity and income inequality is not homogenous across countries and, that at the world level, is not linear. Instead, when the level of complexity of the economy is low, increases in complexity mainly lead to an increase in economic inequality. At higher levels of economic complexity, its effect on income inequality becomes negative. This means that economic complexity improves equality after certain thresholds, which seems to reflect the situation of high-income economies.

Assessing Fiscal Sustainability with Panel Unit Root, Cointegration, and Granger Causality Tests: Evidence from the Broader Groups of Countries

Abstract The question of fiscal sustainability of countries has become one of the central topics in economic policy, especially in times of increasing public debts. One way to assess fiscal sustainability is to examine compliance with the intertemporal budget constraint, which involves testing the stationarity of government revenues and expenditures, the primary budget balance, and the first differences of public debt. Part of this approach includes testing cointegration and causality among different pairs of variables. Under this approach, the paper is focused on both first- and second-generation panel unit root tests, cointegration, and Granger causality test. This paper focuses on assessing the fiscal sustainability of four panels of countries divided by continents: Europe, Asia and Oceania, Africa, and Latin America, the Caribbean, and North America. It has been found that fiscal sustainability is present in all the broader groups of countries considered but in a weak form. Fiscal sustainability was confirmed when considering a constant in calculations, while deviations were observed among groups of countries when both a constant and trend were considered. The study serves as a starting point for a more extensive analysis of fiscal sustainability. For more accurate findings, it would be necessary to categorize countries into smaller and economically more homogeneous groups and analyze them using other fiscal sustainability methods as well.

Do the sector-orientation and the origin of foreign direct investment explain types of corruption in Sub-Saharan Africa?

This paper focuses on analysing the effects of sector orientation and the origin of FDI on the types of corruption. The GMM technique and the IV-2SLS on a panel of Sub-Saharan African countries were used. Globally, we find that FDI increases political corruption in SSA. Moreover, the study shows that sector orientation and the origin of FDI have significant effects on each type of corruption. Primary sector FDI enhances public sector corruption and reduces judicial corruption. Secondary sector FDI increases executive, public, and judicial corruption. In the tertiary sector, executive and public corruption are enhanced while judiciary corruption is reduced. Regarding the origin, FDI from France increases public sector corruption whereas FDI from China and the USA reduces it. Executive corruption is reduced by FDI, regardless of its origin. FDI from France and the USA discourages judiciary corruption while FDI from China increases it. FDI from China reduces legislative corruption, while FDI from the USA tends to increase it. Furthermore, the analysis of the transmission channels shows education and development levels as important channels through which FDI could reduce corruption in SSA. Relevant policy implications derived from this study include the necessity for policy-makers to combat all types of corruption and mostly public corruption.

Energy innovation investment and renewable energy in OECD countries

Achieving carbon neutrality by 2050 remains fundamental to limiting global warming to 1.5 °C this century and mitigating the catastrophic effects of climate change. Policymakers have indicated that the transition towards a renewable energy economy is the catalyst for achieving this. Transitioning towards a renewable energy economy requires substantial investment in renewable energy technologies. While most empirical studies have explored the linkage between investment in research and development (R&D) and carbon emissions, not much is known empirically about the effect of energy innovation R&D on renewable energy generation. This study, therefore, contributes to the literature by investigating the impact of energy innovation R&D on renewable energy generation using a comprehensive panel dataset of 26 OECD countries from 1974 to 2020. Using a battery of robust alternative estimation methods, the results indicate that energy innovation R&D generally does not increase total renewable energy generation in the panel of OECD countries. The results further show that energy innovation R&D has a heterogeneous effect on disaggregated renewable energy sources such as solar energy, wind energy, nuclear energy, and hydro energy generation.

Financial development and environmental degradation: insights from European countries

ABSTRACT We investigate the relationship between financial development and environmental quality during 1996–2019 in a panel analysis of 40 European countries, of which 28 EU and 12 non-EU member countries. We built four empirical models to check the connection between financial development and environmental degradation while controlling for GDP growth, trade openness, FDI, and energy consumption. We applied the Dynamic Common Correlated Effects (DCCE) estimator because of cross-sectional dependence (CSD) among the panel cross-sections. Our findings report a positive association between financial development and environmental degradation for the entire panel of European countries. The subsequent analysis of sub-groups shows that this is particularly the case for non-EU member countries and countries with a high level of financial development. Furthermore, there is a bidirectional causality between financial development, energy consumption or trade openness, and environmental degradation in European countries.

Do Wages Follow Productivity? Evidence from European Countries

Abstract Economic theory assumes that factors are paid according to their marginal productivity, however the empirical validity of this hypothesis has been questioned in some of the literature. We use data from Eurostat to examine the changes of labour remuneration and labour productivity during the period 2004-2020 in a panel of European countries. The results from the panel regression analysis confirm that in general there is a strong link between labour productivity and the compensation of employees. However, exploratory analysis shows that the sample is characterized with internal heterogeneity. Growth is higher in Central and Eastern Europe and for some countries from the region there is decoupling of productivity and labour remuneration. The latter has seen stronger growth, with the exception of Romania, where in real terms productivity has been growing faster than wages. Possible explanations of the decoupling are catching up and convergence, integration in the world economy, factor mobility, difference in labour market institutions and excessive labour demand, but the present research is inconclusive.

Elections and policies: Evidence from the Covid pandemic

AbstractThis paper explores the impact of political elections on public policies during the Covid pandemic, distinguishing between economic (supportive) and noneconomic (restrictive) policies in a panel of countries that held political elections during 3 years of pandemic, 2020–2022. An event study, controlling for the evolution of the pandemic in terms of Covid cases and deaths, as well as country and time fixed effects, reveals significant adjustments in the Covid‐related restrictive, lockdown‐type, policies but not in the Covid‐related economic support policies before political elections during the first half of the pandemic. The pre‐election policy adjustments included a gradual easing of the restrictions before elections and were driven by the changes in the restrictions that were more likely to directly affect the electorate, such as the restrictions on workplace closing, gatherings, and public events. The presence of the pre‐election restrictions adjustment is conditional on the economic and political characteristics of the country, such as the state of democracy, the degree of political competition, the overall restrictions stringency, and the income level.

The impact of finance on income inequality: a threshold analysis

We identify the optimal level of financial development for income inequality in a panel of countries employing a non-linear panel Generalized Method of Moments approach. The impact of financial development is statistically significant above and below the optimal level, but its impact on income inequality is not asymmetric, with the costs of financial ‘under-development’ being greater than those for ‘over-development’.

Climate change, governance, and macroeconomic stability: Empirical analysis in a panel of African countries

Based on linear and non-linear threshold modeling, we show that improving governance in all its dimensions is a factor in mitigating the adverse effects of climate change on macroeconomic stability in ten African countries. This result is a contribution to the existing literature that focuses primarily on the effect of governance and climate change on economic activity, with the addition of indirect and threshold effects. It also sheds new empirical light on this issue in a sample of African countries that are particularly exposed to climate change, cyclical fluctuations, and poor governance; countries that have not been sufficiently considered in existing empirical literature.

Does the old-age dependency ratio place a drag on secular growth?

The secular stagnation hypothesis suggests that population aging (65+) places a drag on long-run growth, but this assertion remains a matter of debate. To address this issue, we use a panel of OECD countries for the years 1975–2014 to estimate the relationship between the old-age dependency ratio (population 65+/population 15–64) and secular growth (10- and 20-year intervals). Our empirical evidence clearly shows that the old-age dependency ratio has a negative effect on growth, confirming the demographic implications of the secular stagnation hypothesis. We also propose an overlapping generations model that explains this pattern in the data. Within this framework, optimizing households invest in their children's human capital and save for retirement. We show that an increase in the old-age dependency ratio reduces productivity through a reduction in human and physical capital as more resources are transferred to the elderly. This reduction in productivity results in slower growth and secular stagnation.

A road toward green growth: Optimizing the role of mineral resources, fintech innovation and effective governance in G-20 economies

The concept of green economy is introduced in last few decades where it is viewed as a framework that brings justice in the form of less environmental risks and improved social welfare. Thus, green growth is now considered an effective economic strategy all across the world. On the other hand, industrial revolution also enlightens the role of financial sector which is viewed as a significant suitor of growth-driven society. However, conflicting environmentally-friendly project by financial means shove innumerable concerns that either financial market products/services comfort environment and nature. In addition to this, mineral resource abundance is also considered a positive sign for nation but compromised environment and nature makes it critical. Considering the scenario, the study makes an attempt to explore the association among fintech innovation, mineral resource utilization on green growth in the present of effective governance. The present study uses dataset spanning over a period of several years from 2004 to 2021 and concentrates on a balanced panel of G20 countries. Results obtained by FMOLS and DOLS exposed that natural resource utilization is not helpful in promoting green growth due to negative association. Results also proclaim that fintech is proved to be an effective strategy to promote green growth. Surprisingly, effective governance makes no effect on green growth. Hence, open avenues for researchers to explore the area further with other methods. Study implications enforce the idea that Fintech innovation not only reduces financial costs but also improves related services. Moreover, it also implies that there is a profound need of creating synergy during Fintech service development as it will help in the expansion of green investment and reduction of environmental risks, means, promising green growth.

Is economic growth enough to propel rehabilitation expenditures? An empirical analysis of country panel data and policy implications

PurposeRehabilitation is a set of services designed to increase functioning and improve wellbeing across the life course. Despite being a core part of Universal Health Coverage, rehabilitation services often receive limited public expenditure, especially in lower income countries. This leads to limited service availability and high out of pocket payments for populations in need of care. The purpose of this research was to assess the association between macroeconomic conditions and rehabilitation expenditures across low-, middle-, and high-income countries and to understand its implications for overall rehabilitation expenditure trajectory across countries.Materials and methodsWe utilized a panel data set from the World Health Organization’s Global Health Expenditure Database comprising the total rehabilitation expenditure for 88 countries from 2016 to 2018. Basic macroeconomic and population data served as control variables. Multiple regression models were implemented to measure the relationship between macroeconomic conditions and rehabilitation expenditures. We used four different model specifications to check the robustness of our estimates: pooled data models (or naïve model) without control, pooled data models with controls (or expanded naïve model), fixed effect models with all controls, and lag models with all controls. Log-log specifications using fixed effects and lag-dependent variable models were deemed the most appropriate and controlled for time-invariant differences.ResultsOur regression models indicate that, with a 1% increase in economic growth, rehabilitation expenditure would be associated with a 0.9% and 1.3% increase in expenditure. Given low baseline levels of existing rehabilitation expenditure, we anticipate that predicted increases in rehabilitation expenditure due to economic growth may be insufficient to meet the growing demand for rehabilitation services. Existing expenditures may also be vulnerable during periods of economic recession.ConclusionThis is the first known estimation of the association between rehabilitation expenditure and macroeconomic conditions. Our findings demonstrate that rehabilitation is sensitive to macroeconomic fluctuations and the path dependency of past expenditures. This would suggest the importance of increased financial prioritization of rehabilitation services and improved institutional strengthening to expand access to rehabilitation services for populations.

Comparative benefits of environmental protection expenditures and environmental taxes in driving environmental quality of the European countries

AbstractEnvironmental protection and tax policies are part of the crucial pillars and the evolving aspects of environmental sustainability drive. These policies are increasingly employed to counter the 21st century's global climate problem alongside providing economic relief for the implementing economies. Being on the frontier (i.e., the European Union [EU]) of these policies, the current study examines and compares the impacts of environmental protection expenditures and environmental tax on energy consumption on the ploy to mitigate greenhouse gas (GHG) emissions in the panel of EU member countries. With the use of system generalized method of moments and panel causality analyses, the study established the effectiveness of both environmental protection expenditure and environmental tax at improving environmental quality by respectively mitigating GHG emissions by elasticities of ~2.08 and ~0.18. Importantly, environmental protection expenditure is found to be about two times more effective at mitigating GHG emissions than environmental tax policy, thus providing a novel perspective in the literature. Moreover, energy intensity and Gross Domestic Product help to improve environmental quality by mitigating GHG emissions while population causes more pollutant effects. Additionally, the investigation reveals evidence of Granger causality from environmental protection expenditure to GHG emissions in seven of the EU countries and Granger causality from environmental tax to GHG emissions in 10 European countries. Notably, measurable dimensions of policy guidelines that are relevant for globally and/or nationally defined sustainable development goals are induced from the result of this investigation.

Health insurance and height inequality: Evidence from European health insurance expansions

Health insurance expansions can improve health outcomes by increasing access to healthcare. This is especially true among the poorer segments of the population, who may not be able to afford the cost of healthcare, or might lack the information about where to seek proper medical care. In this paper we examine whether increased access to health insurance has historically reduced height inequality by promoting body growth, particularly among poor individuals, and so enhanced their height, a widely used and well-established anthropometric health and well-being indicator. We draw on data from a large global panel of countries for which we could measure height inequality. Our evidence documents that indeed within-country differences in height inequality decreased following health insurance expansions towards near-universal coverage.

Relationship between sustainable development indicators and SMEs’ development indicators: Evidence from the EU countries

This study aims to identify whether achieving sustainable development goals influences SMEs’ development and assess its degree. The dataset on SMEs’ development indicators and SDGs 2, 8, 9, 12, and 13 for the panel of EU-27 countries in 2011–2020 was collected using Eurostat and OECD datasets. Breusch and Pagan Lagrangian multiplier test for pooled OLS/panel data random effects and Hausman test for fixed/random effects were utilized. The results were in favor of random effect GLS regression for SDG2 models, SDG9 models, and SDG12-13 (Model 1) and fixed effect GLS regression for SDG8 models and SDG12-13 (Model 2), respectively. Based on bibliometric analyses using VOSViewer 14 and a comprehensive literature review, 19 independent variables have been selected from the “Sustainable development indicators” catalog covering five sustainable development goals; SMEs’ turnover and SMEs’ employees employed are used as the dependent variables to reflect SMEs’ development. The empirical evidence suggests a significant relationship between individual sustainable development and SMEs’ development indicators. It was found that all seven sustainable development indicators of SDG 2 (Zero hunger) and SDG 12 (Responsible consumption and production) have a significant relationship with the indicators of SMEs’ development. Instead, only a part (8 out of 13) of the sustainable development indicators of SDG 8 (Decent work and economic growth), SDG 9 (Industry, innovation and infrastructure), and SDG 13 (Climate action) have a significant relationship with two or one of the SMEs’ development indicators. Therefore, achieving sustainability goals stimulates the development of SMEs itself. AcknowledgmentThis study is supported by the British Academy’s Researchers at Risk Fellowships Program (Award Reference: RaR\100673).

Decarbonising transportation: empirical insights into electric vehicles, carbon emissions and energy consumption

Purpose This study aims to examine the links between carbon emissions, electric vehicles, economic growth, energy use, and urbanisation in 15 countries from 2010 to 2020. Design/methodology/approach This study adopts seminal panel methods of moments quantile regression with fixed effects to trace the distributional aspect of the relationship. The reliability of methods is confirmed via fully modified ordinary least squares coefficients. Findings This study reveals that fossil fuel use, economic activity, and urbanisation negatively impact environmental quality, whereas renewable energy sources have a significant positive long-term effect on environmental quality in the selected panel of countries. Research limitations/implications The main limitation of this study is the generalisability of the findings, as the study is confined to a limited number of countries, and focuses on non-renewable and renewable energy sources. Practical implications Finally, this study proposes several policy recommendations for decision-makers and policymakers in the 15 nations to address climate change, boost sales of electric vehicles, and increase the use of renewable energy sources. Originality/value This study calls for a comprehensive transition towards green energy in the transportation sector, enhancing economic growth, fostering employment opportunities, and improving environmental quality.

Signaling to creditors and voters: the determinants of national fiscal rules

Fiscal rules are spreading fast among countries. However, why and when governments enact fiscal rules and strengthen their national fiscal legal frameworks are less well understood. This article argues that governments use fiscal rules to signal commitment to fiscal prudence to both creditors and national voters. It investigates this theoretical argument empirically by using a worldwide panel of countries from 1985 to 2015. The empirical analyses find robust evidence that fiscal rules enactment becomes more likely, and that fiscal rules stringency increases when government debt is high and in election years but less evidence that being under an IMF program increases the strength of fiscal rules.