Month: June 2023

HUMAN CAPITAL FORMATION AND ECONOMIC GROWTH RELATIONSHIPS: PANEL DATA INSIGHTS FOR THE INDIAN STATES

Imran HUSSAIN

Department of Economics, Vidyasagar University, Midnapore, India

 imranhussaingrp@gmail.com

Ramesh CHANDRA DAS

Department of Economics, Vidyasagar University, Midnapore, India

ramesh051073@gmail.com

(corresponding)

Abstract

The various endogenous growth theories as well as empirical studies have proved that human capital works as an important factor for economy’s growth. The role of income on human capital formation cannot be overlooked so far as the essences of the endogenous growth theories are concerned. Considering this interconnection among the human capital and income of the economy, the present study provides quantitative evidence to show the associations amongst human capital formation as quantified by the governments’ health and education expenditures and income of the economy measured by states’ gross domestic products for the panel of states and union territories of India during the period from 1998-99 to 2018-19. The technique of panel cointegration is used to show the long run relationships among human capital investment and income of the economy, and then the Wald test is used to examine the direction of short-run causality. The empirical results demonstrate that human capital and state incomes have a long-term relationship. The Wald test reveals a short-run linkage between human capital and income of the state economies, with the causality running from human capital investment to output of the economy. i.e., human capital has an immediate influence on the progress of the economy. It is consequently suggested that the governments of the states and union territories make additional investments in sectors such as education and health in order to secure long-term economic prosperity.

Keywords: Human capital, education, health, growth, panel cointegration, Indian states

JEL classification: I1, I2, O3, C32, C33

pp. 57-71

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FINANCIAL GLOBALIZATION AND GROWTH REVISITED – INTERNATIONAL AND REGIONAL EVIDENCE

Vladimir ŠIMIĆ

Faculty of Economics, Business and Tourism Split, University of Split; Croatia, Associate professor, and CERGE-EI Teaching Fellow

vsimic@efst.hr

Abstract

The effects of financial globalization on economic growth have been put in focus by a more recent branch of globalization literature. In academic circles and international policy arena a strong push towards capital openness and free movement of capital across borders had been seen during the 1990s. While the early arguments suggested positive effects of financial globalization on economic growth, more recently, both theoretical and empirical studies have started seriously questioning this benign view of financial globalization calling for additional evidence. This paper revisits the link between financial globalization and growth using the KOF index of globalization in a sample of 134 world economies in the period 1970-2015. With a large number of countries and application of the panel data estimations techniques this paper provides strong evidence on the link between financial globalization and economic growth. In the broad sample of world economies financial globalization exerts a negative and statistically significant effects on economic growth. The paper also investigates this relationship in the regions of East Asia and Pacific, Middle East and North Africa, Latin America and the Caribbean, Sub-Saharan Africa and Europe and Central Asia and the negative effects are also predominant in the regional grouping of countries.

Keywords: Financial globalization, Growth, International evidence

JEL classification: F4, F6, O4

pp. 43-55

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ENERGY CROPS: ASSESSMENTS IN THE EUROPEAN UNION AGRICULTURAL REGIONS THROUGH MACHINE LEARNING APPROACHES

Vítor João Pereira Domingues MARTINHO

Coordinator Professor with Habilitation, Agricultural School (ESAV) and CERNAS-IPV Research Centre, Polytechnic Institute of Viseu (IPV), Portugal

vdmartinho@esav.ipv.pt

Abstract

There is an enormous potential to produce bioenergy from agriculture, forestry and other land use in the European Union (EU) farms. The agricultural sector in the EU member-states has conditions to increase the contributions of renewable energies through better use of the residues and the production of energy crops. Nonetheless, the profitability of these alternative agricultural outputs, in some circumstances, and the need for land for food production, for example, have been obstacles to effective positioning of the EU farms as sources of bioenergy. From this perspective, this study intends to assess the current context of the energy crops in the farms of the EU agricultural regions and identify a model that supports the prediction of these frameworks. For that, data from the Farm Accountancy Data Network (FADN) were considered for the year 2020. This statistical information was analysed through machine learning approaches, namely those associated with multilayer perceptron (MLP) algorithms from the artificial neural networks (ANN) methodologies. The results from these data show that energy crops do have not relevant importance in the European Union farms. On the other hand, when these crops appear, they are produced by larger farms, with greater competitiveness and which receive more subsidies.

Keywords: Agriculture 4.0, Artificial Neural Networks, Multilayer Perceptron

JEL classification: C45, Q12, Q42

pp. 29-42

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