Tag: Convergence

TOURISM AND ECONOMIC GROWTH NEXUS IN INDONESIA: THE DYNAMIC PANEL DATA APPROACH

Elvina PRIMAYESA

Faculty of Economics and Business, Diponegoro University, Semarang, Indonesia, Faculty of Economics, Andalas University, Padang, Indonesia

yesa040486@gmail.com

Wahyu WIDODO

Faculty of Economics and Business, Diponegoro University, Semarang, Indonesia

wahyuwid2002@live.undip.ac.id

F.X. SUGIYANTO

Faculty of Economics and Business, Diponegoro University, Semarang, Indonesia

fxsugiyanto09@gmail.com

Abstract

The positive impact of tourism on economic growth is generally influenced by various indicators at both global and national levels. However, the question remains whether tourism encourages economic growth or vice versa. This paper examines the importance of tourism as a conditioning factor for economic growth in Indonesia. The validity of the relationship between tourism and economic growth can be examined by using the dynamic panel data estimation approach and convergence analysis to provide evidence of the impact of tourism on economic growth in Indonesia. In accordance with the initial hypothesis on tourism and economic growth, the result shows that the former can encourage the latter, although there is no indication of convergence among provinces in Indonesia. Therefore, if the supply characteristics of the tourism sector are improved, then it can be considered as an alternative source for stimulating economic growth in Indonesia.

Keywords: Economic Growth, Tourism, Dynamic Panel Data, Convergence

JEL classification: C23, L83, O40, O53
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THE IMPACT OF THE ECONOMIC CRISIS IN THE PROCESS OF CONVERGENCE OF THE GREEK REGIONS

Panagiotis KOUDOUMAKIS

Dr. Civil Engineer, Democritus University of Thrace (DUTh), Department of Civil Engineering, Greece

pkoudoum@civil.duth.gr

George BOTZORIS

Assistant Professor, Democritus University of Thrace (DUTh), Department of Civil Engineering, Greece

gbotzori@civil.duth.gr

Angelos PROTOPAPAS

Professor, Democritus University of Thrace (DUTh), Department of Civil Engineering, Greece

aproto@civil.duth.gr

Vassilios PROFILLIDIS

Professor, Democritus University of Thrace (DUTh), Department of Civil Engineering, Greece

vprofill@civil.duth.gr

Abstract

In this paper, the impact of the economic crisis on the convergence of the Greek region’s economy to the European average is examined. In particular, it is being considered the condition of absolute β-convergence using the econometric model of Barro and Sala-i-Martin. The dependent variable was represented by the average value of Gross Domestic Product (GDP) per capita in Purchasing Power Standards (PPS). Additionally the hypothesis of the σ-convergence of the regions of the EU and Greece is being considered, based on the coefficient of variation weighted by population. The results of both absolute β-convergence and σ-convergence suggest a declining trend of convergence and persistence of inequalities for the regions of the EU, following the outbreak of 2008 economic crisis. Regarding the regions of Greece, the results indicate, on the one hand, their deviation from the average income of the regions of the EU and, on the other, a significant increase in the regional disparities in the period 2000-2016.

Keywords: Convergence, Disparities, Economic Crisis, Regions

JEL classification: O41, R11, R12
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OUTPUT, GROWTH, AND CONVERGENCE IN A GREATIVE REGION: AN ANALYSIS OF SOME MEASUREMENT ISSUES

Amitrajeet A. BATABYAL

Department of Economics, Rochester Institute of Technology, 92 Lomb Memorial Drive, Rochester, NY 14623-5604, USA.

aabgsh@rit.edu

Abstract

We study some measurement issues that arise when analyzing the long run behavior of the  jth creative region’s time t log output per creative class member (yj(t)) when this region is part of an aggregate economy of j=1,…N creative regions. We focus first (second) on absolute (relative) convergence. In the absolute (relative) convergence case, the N creative regions are similar (dissimilar) in that they all have the same (different) balanced growth path (BGP) level of log output per creative class member denoted by yBGP(yjBGP) In the absolute convergence case, we analyze how to estimate the speed of convergence parameter (σ) and then discuss the relationship between the variance of yj(t) and that of yj(0) In the relative convergence case, we study the error associated with estimating σ using the methodology of the absolute convergence case. Finally, suppose yjBGP= a + bXj where Xj is an explanatory variable such as creative capital and a and b are positive constants. Here, we study how to estimate b from our knowledge of the coefficients of a related cross-region growth regression.

Keywords: Convergence, Creative Capital, Economic Growth, Measurement, Output

JEL classification: R11, C18

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