Percentage Of GDP Research Articles

Fresh insights on the nexus between green foreign financing and efficient use of natural resources: The moderating role of institutional quality

It is more probable that both industrialized and developing nations have a great deal of potential for putting sustainable logistics into practice, but they are also severely disrupted by climate change. The goal of this article is to establish a link between Green Foreign Direct Investment (FDI) and Natural Rents through the use of a worldwide database. In order to quantify natural rents, five different measures are used, including those for coal, minerals, natural gas, forests, and aggregates. We find that the expansion of Green FDI contributes to the growth of natural rents as a result of the empirical findings of our investigation. To elucidate the correlation between Green Foreign Direct Investment and Natural Rents, various indicators such as economic growth (INC), trading activities as a percentage of GDP (EXP), industrialization level (IND), net foreign direct investment (FDI), government effectiveness (GE), ISO 14001 certificates (EI_ISO), and environmental performance index (EPI) are considered. To enhance the accuracy of the model, variables related to institutional quality are also taken into account. Based on our research, we believe the long-term impact of Green FDI will be stronger, particularly in nations with an advanced stage of growth. Within the framework of the analysis, the robustness and reliability of the findings are maintained regardless of heterogeneity, fixed effects, and endogeneity.

Do Financial Sector Characteristics Influence FDI? A Study of Western Balkans Countries

This paper investigates the relationship between the development of the financial sector and foreign direct investment (FDI) inflows in Western Balkans countries from 2007 to 2023. The study focuses on four indicators of the financial sector: the ratio of bank nonperforming loans to total gross loans, domestic credit to the private sector by banks, the number of commercial bank branches per 100,000 adults, and the number of borrowers from commercial banks. Using panel data regression techniques, including fixed and random effects models, the analysis aims to understand how these financial characteristics affect net FDI inflows as a percentage of GDP. The findings show that higher domestic credit to the private sector has a statistically significant and positive impact on FDI inflows, suggesting that a stronger credit environment encourages foreign investors. In contrast, a higher number of borrowers from commercial banks is associated with a significant decrease in FDI, which may reflect credit risk. Other variables, such as nonperforming loans and commercial bank branches, did not show a consistent effect. These results highlight the importance of credit availability and financial soundness for attracting FDI in the Western Balkans region. The study contributes to the understanding of how financial sector indicators influence foreign investment decisions in small, developing European economies.

How a nation's well-being influences its health profile: an analysis of critical indicators.

This study examines the impact of macroeconomic well-being indicators-GDP, health spending as a percentage of GDP, and the unemployment rate-on the prevalence of chronic diseases, including circulatory and respiratory diseases and diabetes mellitus, across 27 European Union countries over 21 years. Utilizing advanced econometric methods like General Method of Moments, Structural Equation Modeling, and wavelet coherence analysis, the research reveals that higher GDP correlates with increased disease prevalence, while greater health spending reduces it. The unemployment rate significantly affects diabetes prevalence. The study introduces the "Economic Prosperity and Chronic Disease Paradox," theory, which suggests that economic growth, while improving healthcare access and living standards, paradoxically increases chronic disease rates due to lifestyle changes such as unhealthy diets, sedentary behavior, and pollution. This theory highlights the need for strategic public health policies to counteract these adverse effects and promote sustainable health outcomes amidst economic development.

Unconventional Monetary Policies in Small Open Economies

This paper provides a comprehensive assessment of the macroeconomic and fiscal impact of unconventional monetary tools in small open economies. Using a DSGE model, we show that the exchange rate plays a critical role to amplify the favourable impact of unconventional monetary policy while it attenuates the effectiveness of conventional fiscal policy to jointly boost output and inflation. We then use the model as a laboratory to do a case study of the Swedish Riksbank asset purchases and negative policy rates 2015-2019. We find that the Riksbank unconventional policy measures provided meaningful macroeconomic stimulus to economic activity and inflation, with the dual benefit of reducing overall government debt by about 5 percent of GDP. If conventional fiscal policy had been used to provide a commensurate output boost, inflation would have risen notably less, and the fiscal cost would have amounted to a deterioration of the government debt position with nearly 8 percent of GDP.

Tax Potential and Revenue Mobilization in Niger

Niger faces significant challenges to mobilize revenue, with one of the lowest tax revenue to GDP ratios in the region. This paper estimates the tax revenue gap, which reflects the difference between the actual and the potential tax revenue given economic and institutional context. The tax revenue gap reached 3.4 percent of GDP in 2022 due to gaps in the collection of taxes on goods and services, and international trade taxes. To enhance revenue mobilization, it is essential to rationalize VAT exemptions and the reduced rates on specific products, reform excise and property taxes, and strengthen tax administration.

Liechtenstein

This paper analyzes Liechtenstein's fiscal framework, highlighting its successful consolidation following the global financial crisis. The study examines the budget balance rule that anchors fiscal policy, benchmarking key fiscal indicators against European peers. Findings reveal Liechtenstein effectively implemented frontloaded fiscal consolidation through revenue and expenditure measures, improving the fiscal balance by 4.1 percent of GDP during 2014-18. Despite maintaining low tax rates, Liechtenstein operates with a lean government structure, evidenced by low public employment levels and wage bills. The analysis concludes that increased capital investment could boost productivity, which has stagnated over the past two decades despite being higher than Switzerland's.

Lebanon: From Dollars to Lollars

ABSTRACTWhat were the policies that created one of the world's largest financial and economic crisis (as a percent of GDP) in Lebanon in the early 2020s? An artificially strong currency peg created a consumption boom financed by government debt and international capital flows/remittances, exposing both the public and private sector to classic currency mismatch vulnerabilities. Moreover, a volatile deposit growth through international remittances created banking risks that both a government and a central bank needed to manage. High deposit growth resulted in large banks that invested in high interest‐bearing USD deposits at the central bank. The central bank financed government debt, exposing the banking sector to sovereign debt. A worsening international economic environment and political fractionalization in a geopolitically sensitive region exacerbated the classic delays arising from taking difficult burden‐sharing, distributional decisions to address the financial crisis.

Foreign Direct Investment and Financial Openness: A Fresh Evidence from Developing Economies

One of the critical challenges confronting developing nations is the attraction of foreign direct investment. This study examines the impact of financial openness on FDI inflows in developing countries using panel data spanning the period from 1993 to 2022, sourced from the World Development Indicators and the Worldwide Governance Indicators. The analysis employs the Generalized Method of Moments (GMM) to assess the relationship between FDI inflows (measured as net inflows as a percentage of GDP) and key economic and institutional factors, including financial openness, trade openness, GDP per capita, corruption levels, and political stability. The findings reveal that all these variables exhibit a significant and positive effect on FDI inflows at the aggregate level. Further regional analysis highlights variations across Asia and Africa. In Asia, while most variables positively influence FDI, financial openness and corruption exert a negative impact. Conversely, in Africa, all variables positively affect FDI except for corruption, which negatively influences investment due to the region’s persistent political instability. This study underscores the pivotal role of financial openness, political stability, and corruption levels in shaping FDI inflows. A stable political environment serves as a key determinant in attracting higher levels of foreign investment. Moreover, an increasing GDP per capita and an expanding domestic market enhance a country’s attractiveness to foreign investors. These insights provide valuable guidance for policymakers seeking to cultivate a favorable investment climate and promote sustainable economic growth.

The Effect of Tax Evasion on Consumption in OECD Countries

This paper studies the effect of tax evasion on consumption for a panel of OECD countries using annual data from 2003 to 2021. Our model includes the consumption percentage of nominal GDP as the dependent variable, with inflation, nominal GDP, interest rates, unemployment and tax evasion as explanatory variables. We use the shadow economy (as a percent of GDP) as a proxy for tax evasion. Results from our generalised method of moments model indicate that tax evasion is positively associated with consumption, likely because tax evasion increases disposable income. We discuss policy implications.

Exploring the Role of Education (Formal and Informal Learning) in Shaping Climate Change and Disaster Awareness in Sarawal Rural Municipality, Nepal

Over the past two decades, environmental temperatures have risen significantly, directly influencing climate change. Climate change (CC) and climate-induced disasters have extreme impacts on human beings and their occupations. In Nepal, the frequency of weather-related extreme events has doubled in the last two decades. Although Nepal contributes a negligible amount of greenhouse gases compared to industrialized nations, its people face severe challenges from climate change and its associated disasters. Vulnerable people are disproportionally affected by climate change. Nepal has been losing a high percentage of GDP due to flood, landslides and other types of disasters. Education has a crucial role in developing individuals' understanding of climate change, its impacts, and the significance of preparedness, risk reduction, and timely response measures. The southern region of Nepal is particularly vulnerable to climate-sensitive hazards such as floods, fires, droughts, heatwaves, and vector-borne diseases. Sarawal Rural Municipality in Nawalparasi West has been repeatedly affected by disasters like floods, fires, and droughts. Acknowledging these challenges, this study investigates the perceptions of 428 households of ward no 5, 6 and 7 with diverse educational backgrounds about climate change and its impacts. The analysis is based on their responses to eight key assertions, ranked via a five-point Likert scales. Findings reveal a sound association between education level and understanding of climate change and climate-induced disasters. Interestingly, both literate and illiterate respondents acknowledged these impacts, likely due to firsthand experiences, as most of the respondents are farmers. The respondent cohorts included individuals with no education at all (illiterate) and no formal education (literate), those with primary-level education, and those with high school education or above. Notably, illiterate individuals—primarily engaged in agriculture—expressed higher agreement either strongly agree or agree on the effects of climate shift and disasters compared to respondents having higher educational backgrounds. Therefore, when designing and implementing climate change and disaster-related interventions, it is essential to consider education levels, real-life exposure, and lived experiences.

Assessing the impact of military expenditures on economic growth: A case study of Azerbaijan

Analyzing the connection between military expenditure and economic growth is interesting due to its policy implications, particularly in geopolitically strategic regions. In the case of Azerbaijan, where defense spending accounts for a significant share of the national budget, this relationship is especially relevant. The present study explores the long-term equilibrium between military expenditure, expressed as a percentage of GDP, over a three-decade period marked by consistent economic growth and substantial defense investments. To investigate this relationship, the study applies the Johansen cointegration method to check for a stable long-term relationship. It employs the Granger causality test to determine the causal direction between the variables. The findings show cointegrating relationships, indicating a long-term equilibrium between military expenditure and economic growth. Furthermore, the Granger causality analysis indicates a bidirectional causal link, implying that changes in military expenditure influence GDP per capita growth and vice versa. Specifically, the results show that military expenditure Granger causes GDP per capita at a lag of 3 (p-value = 0.012). Similarly, GDP per capita Granger causes military expenditure at the same lag (p-value = 0.0001). The findings reveal the dual impact of military spending on economic development, providing insights for Azerbaijani policymakers to balance defense needs with economic growth.

Corruption as a Local Advantage: Evidence from the Indigenization of Nigerian Oil

Multinationals in the extractive sectors of weak states face resource theft by armed groups. Criminality is often abetted by state corruption, even though firms are willing to pay for protection. I study indigenization in Nigeria’s oil sector, which increased local firms’ participation substantially. Despite lower quality, local firms increase output by reducing oil theft. A bargaining model illustrates that political connections align law enforcement incentives, solving commitment problems. Data on law enforcement raids show that local firms receive preferential protection. Connections to military elites drive the local advantage. The aggregate gains from indigenization are at most between 2.3 and 5.7 percent of GDP. (JEL D73, F23, L71, O13, O17, Q34, Q35)

Financial Intermediation and Economic Growth in Nepal

This paper portrays the impact of financial intermediation especially domestic credit to the private sector and broad money supply on GDP growth in Nepal, using annual time series data spanning from 1974 to 2022. The main objectives of the paper are to examine the magnitude and direction of these financial intermediation variables in influencing economic growth of Nepal. The included time series data were a mix of stationary at level and after first difference. Hence, an Autoregressive Distributed Lag (ARDL) model was employed to provide robust framework for analyzing both long-term relationships and short-term fluctuations while maintaining flexibility in lag selection and handling endogeneity. The findings indicate a nuanced relationship between financial factors and GDP growth of Nepal. Specifically, the coefficient of domestic credit to the private sector is positive but statistically insignificant, this suggests that the flow of domestic credit may be either insufficient or inefficiently allocated to significantly contribute Nepalese economic growth. But, the broad money supply as a percentage of GDP shows a strong positive and statistically significant effect. This indicate that increased money supply supports business activities, improves liquidity, spur investments, and eventually fostering economic growth. Moreover, other control variables also display significant relationships with GDP growth of Nepal. Labor force participation and trade openness demonstrate substantial positive effects, while government expenditure shows a modest positive impact. Furthermore, private consumption expenditure emerged as a critical driver of growth, emphasizing the importance of household expenditure in stimulating demand and economic growth. Therefore, these results underscore the necessity of a stable money supply, increased labor force participation, enhanced private consumption, and greater trade openness for sustained economic growth in Nepal. The findings also shed light to explore potential area for policy improvement to strengthen domestic credit allocation to enhance its contribution to economic growth.

Diversity Matters in the World of Finance: Does Ethnic and Religious Diversity Hinder Financial Development in Developing Countries?

This paper investigates the relationship between ethnic and religious diversity (ED and RD) and financial development using the data from 102 developing countries. It is widely accepted that financial depth and the more ready availability of finance have a central role to play in fostering economic growth. We hypothesize that financial development in developing countries, especially those at the early stages of economic development, may be retarded by preexisting ED and RD, which may produce conflict. However, we believe that this risk can be moderated by sound institutional functioning, including good governance and democracy. Financial development is measured using M2 and private credit, both as a percentage of GDP, while ED and RD is measured using the Alesina fragmentation index. Our results are supportive of our hypothesis that ED and RD can indeed hamper financial development; these risks, however, are mitigated by well‐functioning institutional arrangements.

Recovering from a Pandemic? Analysis and Implications of Utilising Predictive Analytics for Improving UK Government Healthcare Financing

The COVID-19 pandemic has exacerbated existing challenges in the UK healthcare system, including rising healthcare costs, inefficiencies in resource allocation, and the need for additional financing to support pandemic response efforts. This study explores the potential of predictive analytics, specifically machine learning models, to improve healthcare financing in the UK. Using time series data from 1980 to 2021, we employ three machine learning models—Linear Regression, Prophet, and Theta—to forecast healthcare expenditure as a percentage of GDP from 2023 to 2030. The results indicate a positive relationship between health financing and health outcomes, with healthcare expenditure in the UK expected to continue rising. The study highlights the effectiveness of predictive analytics in forecasting future healthcare financing levels and underscores the need for ongoing investment in healthcare infrastructure to ensure improved health outcomes for all citizens. The findings provide valuable insights for policymakers and stakeholders in the healthcare sector, both in the UK and internationally.

How e-Government Affects the Shadow Economy: A Further Analysis

This study re-examines the influence of e-government development on the shadow economy. Empirical analysis is carried out for a sample of 148 countries from 2003 to 2020. First, the negative effects of e-government on the size of the shadow economy as a percentage of GDP are re-affirmed across the globe. Second, telecommunication infrastructure is likely the main factor explaining how e-government affects the shadow economy. Third, the negative effects of e-government are less in countries with high economic uncertainty, large government size, or a greater portion of the services sector, while there is statistically insignificant evidence that e-government might have a greater negative effect in countries with a socialist history, a civil law system, one major religion, or a strong state history. Fourth, panel autoregressive distributed lag estimates show that e-government may increase the shadow economy in the short term, but it reduces the shadow economy significantly in the long term. Fifth, e-government increases the absolute value of the shadow economy. The findings suggest that e-government adoption might provide benefits for both the official and unofficial economies, although the benefits for the official economy outperform those for the unofficial economy, particularly in the long run.

Causality Between Carbon Emissions, Temperature Changes, and Health Expenditures: A Comparative Panel Approach with Environmental and Economic Indicators

This study investigates the causal relationships between carbon emissions, temperature increases, and health expenditures within the framework of environmental and economic indicators. With the accelerating global impacts of climate change and rising carbon emissions, understanding their effects on public health systems has become critical. This research evaluates these interdependencies using panel causality models, dividing 115 countries into two groups—developing and developed—based on Gross National Income (GNI) per capita (PPP) and health expenditures as a percentage of GDP. Dumitrescu–Hurlin panel causality analysis was applied to examine bidirectional relationships among key indicators, including population density, temperature changes, carbon emissions, GNI, and health expenditures. The findings reveal that population density has significant causal effects on both temperature changes and carbon emissions, while carbon emissions also influence health expenditures. Moreover, the causality from population density to temperature changes is stronger in developed countries, whereas the impact of temperature changes on health expenditures is more pronounced in developing countries. These results highlight the need to strengthen climate adaptation capacities in the health systems of developing countries and implement stricter carbon emission reduction policies in developed nations as essential strategies to address these interconnected challenges.

Green Taxes and their Impact on Romanian’s Economy compared to Investments for Air and Climate Protection

Climate changes are more and more evident and their effect is increasingly extensive, and in the current context the environmental taxes may become a key factor in ensuring the sustainable development for the entire society. This article presents a medium-term analysis of the main categories of environmental taxes, their evolution compared to the investments for air and climate protection, as a percentage of GDP, made in Romania. Four main categories of environmental taxes: energy taxes (including transport fuels); transport taxes (excluding transport fuels); pollution taxes and resource taxes are collected in Romania, yearly. The data used in this study provides from the National Institute of Statistics. During 2006-2020, in Romania the highest percentage is represented by energy taxes 88%, in second place are taxes for transports 10% and in the third and fourth places with insignificant percentages (about 1%) are the taxes for resources and for pollution. From the four categories of environmental taxes, it can be seen that resource taxes have a decreasing trend from 51.6 million euros in 2006 to 3.84 million euros in 2020, while energy taxes, transport taxes and pollution taxes have an increasing trend. Keywords: climate changes, environmental taxes, sustainable development, air and climate protection

An Economic Study of the Relationship Between Environmental Shocks and the Value of Agricultural GDP in Iraq for the Period 2004-2023

Abstract This article addresses environmental shocks; specifically, it examines the impact of five distinct environmental shock groups on Iraq’s agricultural GDP from 2004 to 2023. For the purpose of analyzing the relationship between environmental shocks and influencing factors, Variance Decomposition (VD), and Immediate Response Functions (IRF), the created vector autoregressive model (VAR) was selected as the theoretical framework. An experimental test of the model was also carried out. For the purpose of studying the external factors that characterize environmental shocks, the following indicators were studied, namely the value of agricultural gross domestic product as a dependent variable.; natural resource rent as a percentage of GDP%X1; adjusted net savingsX2; carbon dioxide emissionsX3; annual rainfall (mm/year)X4, average annual temperatureX5 as a independent variables, through the results obtained, it was found that the agricultural GDP was clearly and positively affected by the total rent of natural resources by expressing it as a percentage of GDP‥ The value of agricultural GDP was significantly and positively impacted by the adjusted net savings, whereas the value of agricultural GDP was negatively impacted by carbon dioxide emissions. Iraq should prioritize organic farming more, since it will assist lower emissions in the agriculture sector by raising more cattle and crops. Finally, the agricultural sector in Iraq may attain energy efficiency, which is another useful instrument to reduce CO2 emissions, relying on technical innovation as well as advances in growing and harvesting processes. The model’s research revealed a consistent tendency in the dynamics of environmental shocks.

Сучасні методи антикризового менеджменту та їх актуальність для українського бізнес-середовища

The article examines the essence of the concept of “crisis management” proposed by foreign experts in science and journalism. The author discusses the variations in interpretations of the studied concept and highlights the key similarities in the definitions provided by scientists. A comprehensive definition of “crisis management” is proposed, encompassing the key aspects identified by the analyzed authors. The article briefly describes the challenges of the modern Ukrainian business environment caused by the protracted military and political crisis associated with Russia’s full-scale invasion of Ukraine. The impact of the Russian military aggression on the Ukrainian economy is analyzed, and the damage caused as a percentage of GDP is described. Today’s foremost economic, social, and energy challenges, including the decline in GDP, forced emigration, and the destruction of Ukraine’s energy infrastructure, are briefly explored. The author analyses modern crisis management techniques and types, including legal, information and analytical, organizational, managerial, and financial responses to crisis phenomena. The author examines the strengths and weaknesses of each of the types mentioned above and considers their correlation with the national business environment, considering the challenges that Ukrainian business is currently facing, especially in the southeastern part of Ukraine, where the impact of the war is significantly higher than in the right-bank part of the Ukrainian State. It is determined that legal mechanisms did not play a significant role in the beginning of the full-scale invasion of business, i.e., they are poorly correlated with the Ukrainian environment. The information-analytical, organizational, and managerial mechanisms have demonstrated relative efficiency when implemented correctly in activities, both at the enterprise level and within the national economy. The influence of financial crisis management types and their mechanisms is investigated. A conclusion is drawn regarding the alignment of modern crisis management approaches with the challenges of the domestic business environment. Keywords: crisis management, business environment, crisis management methods, crisis management techniques, war, Ukraine, strategic behavior, electricity deficit, foreign market, challenging situation.