Tag: Growth

INTERRELATIONSHIPS BETWEEN HUMAN CAPITAL AND INTELLECTUAL CAPITAL: EVIDENCE FROM THE PANEL OF HIGH-INCOME AND LOW AND MIDDLE-INCOME GROUPS OF THE WORLD

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)

Aloka NAYAK

Department of Economics, Vidyasagar University, Midnapore, India

aloka.nayak21@gmail.com

Abstract

The competitiveness in production sector is increasing significantly due to the openness of the economies in the world. Importance of intellectual capital (IC) thus has been mounting continuously and human capital formation (HCF) is considered as the main source of it. IC, an advanced version of human capital, is formed by the efforts upon research and development (RD) activities. It is a natural question whether HCF helps in the formation of intellectual capital in the countries of different status. Under the backdrop, the study examines the long-term relationship between intellectual capital and HCF in case of some countries from the high-income group (HIG) and low and middle-income group (LMIG) during the period of 1998 to 2018. It employs panel unit root, panel cointegration and panel causality techniques for examining the long run associations and short run dynamics between human capital and intellectual capital for the two groups of the economies. The findings of the study show that long-term association exists between these two forms of capital for both the panels of high and low and middle-income nations. But the short-run causal interplay works in high-income group only where human capital formation is making a cause to the intellectual capital formation. A one-unit increase in the change of HCF at period t-1 results in a 0.05 unit rise in the change of current year intellectual capital in the high-income group. The governments of the countries are suggested to make more human capital formation via increasing expenditures on both education and health sector to assure more intellectual capital.

Keywords: Human capital, intellectual capital, growth, panel cointegration, panel causality, high and middle income countries

JEL classification: R10, R11, O30, C33

 pp. 107-122

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RELEVANCE OF TYPE OF INVESTMENT FOR GROWTH: EVIDENCE FROM EU-10 COUNTRIES

Vladimir ŠIMIĆ

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

vsimic@efst.hr

Lena MALEŠEVIĆ PEROVIĆ

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

lena@efst.hr

Abstract

Whilst investment in both theoretical and empirical literature stands out as one of the most prominent determinants of growth, evidence on the importance of different types of investment for growth appears to be missing. This paper aims at filling this gap. The paper, thus, primarily contributes to the empirical literature by investigating the effects of different types of investment on growth in a group of EU-10 economies covering the period from 1995 to 2019. The panel data analysis provides some important and interesting findings. While overall investment is found to be strongly significant and positive, being in accordance with previous studies, the results provide new insights into the importance of different types of investment for growth. Not all types of investment affect growth (positively and significantly), thus sending also important message that it matters in which activities investment goes.

Keywords: Type of investment, Growth, EU-10 countries

JEL classification: E22, O4, O47

 pp. 105-115

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DOES TRADE OPENNESS AND FISCAL POLICY AFFECT INEQUALITY AND ECONOMIC GROWTH? A STUDY IN INDONESIA

Mohammad KHUSAINI

Dr. in Economics, Faculty of Economic and Business, Brawijaya University-INDONESIA

mohkhusaini@yahoo.com

Setyo TRI WAHYUDI

Ph.D in Economics, Faculty of Economic and Business, Brawijaya University-INDONESIA

Setyo81@gmail.com

Zamrud SISWA UTAMA

Master of Economics Student at Faculty of Economic and Business, Brawijaya University-INDONESIA

Abstract

This paper examines the impact of trade openness and Indonesia’s fiscal policy on income inequality and economic growth. The error correction model approach was used to analyze the effect during the period 1980 to 2015. The results show that trade openness can improve inequality but at the same time impede growth. The effect of fiscal policy on reducing inequality is only generated by tax collection but is temporary. Meanwhile, government spending on infrastructure and health proved to encourage growth. On the other hand, education sector spending and tax collection can actually hamper growth.

Keywords: Trade Openness, Inequality, Growth, Fiscal Policy

JEL classification: E62, F63, H50, O40
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