Month: December 2020

INFLATION AND UNEMPLOYMENT IN SOUTHEAST ASIAN COUNTRIES: A PANEL GMM APPLICATION ON PHILLIPS CURVE

ALIASUDDIN

Associate Professor at the Department of Economics, Faculty of Economics and Business, Universitas Syiah Kuala, Banda Aceh, Indonesia

aliasuddin@unsyiah.ac.id

Sofyan SYAHNUR

Associate Professor at the Department of Economics, Faculty of Economics and Business,Universitas Syiah Kuala, Banda Aceh, Indonesia

kabari_sofyan@unsyiah.ac.id

MALIA

Graduate Student at the Department of Economics, Faculty of Economics and Business, Universitas Syiah Kuala, Banda Aceh, Indonesia

malia1980@mhs.unsyiah.ac.id

Abstract

This study aims to analyze the relationship between inflation and unemployment in 10 Southeast Asian from 1996 to 2016 using 210 data samples. The estimation results, using the GMM panel method, showed that the use of Instrument Variables (IV) is valid for the model and the results show a negative and significant relationship between inflation and unemployment. The optimal value of inflation and unemployment for the Southeast Asian Region were found to be 4 percent and 8 percent respectively. This means that a trade-off has taken place. Thus, the existence of the Phillips Curve in Southeast Asian countries during the period of 1996-2016 can be proven. In accordance with the Phillips Curve review, if the trade-off occurs, the government cannot resolve both problems simultaneously. In other words, policy makers must be able to choose the problem to be addressed first, either by implementing monetary policy, fiscal policy or both, so that economic stability and public welfare are maintained.

Keywords: Inflation, Unemployment, Phillips Curve, Panel GMM, Southeast Asia.

JEL classification: E24, E31, C23, J01

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EXPERT ANALYSIS AND IMPACT ASSESSMENT OF THE CONSTRUCTION SECTOR ENTERPRISES ON THE ECONOMY: THE EXPERIENCE OF UKRAINE

Mykhailo LUCHKO

Doctor of Economic Sciences, professor;Ternopil National Economic University, Ukraine

m_luchko@ukr.net

(Corresponding author)

Stanisław SZMITKA

Associate professor of University in Olsztyn, Poland

pbdmorag@interia.pl

Yuriy PYNDA

Associate professor of Lviv University of Business and Law, Ukraine

yuriy_p1@ukr.net

Lyudmyla KUTS

Associate professor of Ternopil National Economic University, Ukraine

epik3403@tneu.edu.ua

Abstract

The aim of the article is to establish the impact of construction sector enterprises on the economy. Using dynamic cross-sectional balance regression, it is determined that gross domestic product, the level of budget revenue, volume of capital investment, the level of employment, the coefficient of coverage of imports by exports and volume of innovative realized products  depend on the development of the of enterprises in the construction sector. The model of social and economic participation of the construction sector in the economic system of the country is developed, which on the basis of dynamic cross-sectional balance regression allows to determine ranges of values of influence of the main indicators of functioning of the enterprises of the construction sector on the gross domestic product; the level of budget revenues; volume of capital investments; employment rate; coefficient of coverage of imports by exports.

Keywords: enterprises of construction sector, construction, impact, economy, development, dynamic cross-sectional balance regression.

JEL classification: L74, C61, D60, E23

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FIRM SIZE AND LOCATION CHOICE OF FOOD INDUSTRY: IZMIR/TURKEY CASE

Nilnaz AKBAŞOĞULLARI

MSc City Planner, Izmir, Turkey, Tel: +90 554 972 37 64

nilnazakb@gmail.com

Hasan Engin DURAN

(Corresponding Author) Izmir Institute of Technology, City and Regional Planning Department, Associate Professor of Economics, Adress: Gülbahce Kampüsü, Izmir Yüksek Teknoloji Ensitüsü, Mimarlık Fakültesi, Şehir ve Bölge Planlama Bölümü, Urla-Izmir, Tel: +90 232 750 70 04

enginduran@iyte.edu.tr

Abstract

Purpose of the current study is to analyze the determinants of firm location in Izmir’s food industry. The dataset covers 734 firms in 2018. The analyses particularly focus on the impact of experience and size of the firms, the effects of which are not yet adequately analyzed by the existing literature. In terms of methodologies, initially, explorative maps are used to illustrate the data. Then, linear regression analyses are applied to analyze the location behavior determinants. Spatial autocorrelation test is applied to as a robustness test. Our findings point to three main results. First, firm size is not statistically a significant determinant of firm location. So, big firms may locate in/around or out of cities, whereas, also small firms may locate close to or distant from city centers Second, the influence of the experience variable is rather definite; earlier founded firms naturally locate closer to CBD. Third, with regard to results regarding sub-sectors, firms in packaged food and bakery sectors locate nearby CBDs where, in contrast, firms in animal products sector tend to locate in rural areas. Overall, the key lesson that we learn from the analysis is that concentration of large firms around urban areas should be avoided so to cope with environmental problems and to maintain fair competition between big and small firms. Moreover, younger firms should be subsidized (through tax exemptions, rental aid, export and employment subsidies) so that their capital structure remains strong even if they are not able to place close to the market.

Keywords: Location Choice, Food Industry, Determinants, Firm Size

JEL classification: D22, R3

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