Tag: C23

GOVERNMENT EXPENDITURES COMPOSITION AND GROWTH IN EU15: A DYNAMIC HETEROGENEOUS APPROACH

Lena MALEŠEVIĆ PEROVIĆ

Associate professor University of Split, Faculty of Economics, Business and Tourism, CERGE EI Teaching Fellow Cvite Fiskovića 5, 21000 Split, Croatia, Tel: + 385 21 430 683, Fax: + 385 21 430 701

lena@efst.hr

Silvia GOLEM

Associate professor University of Split, Faculty of Economics, Business and Tourism, Cvite Fiskovića 5, 21000 Split, Croatia, Tel: + 385 21 430 673, Fax: + 385 21 430 701

sgolem@efst.hr

Abstract

The goal of this paper is to investigate the long-run effect of government size and composition on growth in EU15 countries during 1995-2014. Unlike previous studies, this paper employs a more adequate and sophisticated econometric technique which allows the joint occurrence of dynamics and parameter heterogeneity as well as addresses the problem of unobserved common factors. The obtained results indicate that high aggregate spending levels are an impediment for growth in developed economies, while the single most important government expenditure item is education. In quantitative terms the impact of education expenditures is, however, significantly lower than that found by other papers.

Keywords: government size, expenditures composition, GDP growth, heterogeneity, unobserved common effects, EU15

JEL classification: C23, H1, H50, O4
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DETERMINANTS OF INCLUSIVE GROWTH IN IRANIAN REGIONS (SURE APPROACH IN PANEL DATA)

Majid FESHARI

Assistant Professor of Economics, Kharazmi University

majid.feshari@gmail.com

Mojtaba VALIBEIGI

Assistant Professor of Urban Planning, Buein Zahra Technical University

Abstract

The concept of inclusive growth is one of the important issues in the urban economics literature and has been considered in empirical studies recently. For this purpose, the aim of this paper is to investigate the relationship between income inequality and GDP growth in Iranian provinces over the period of 2000-2014. To conduct this study, the econometric model has been estimated by applying seemingly unrelated regression in panel data for 30 Iran’s provinces. The main findings of this paper shows that the Gini coefficient as a proxy for income inequality, unemployment rate have negative impact and initial value of Gini coefficient has positive and significant effect on the growth of GDP respectively. The overall conclusion of this study suggests that inequality of Iranian provinces can be declined by improving employment and growth of GDP in Iranian provinces.

Keywords: Inclusive Growth, GDP Growth, SURE Approach, Panel Data

JEL classification: C23,O15,R11

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TOURISM DEMAND AND TAX RELATIONSHIP IN ISLAMIC REGIONS

Majid FESHARI

Assistant Professor of Kharazmi University province, Iran.
majid.feshari@gmail.com

Ali AKBAR TAGHIPOUR

Assistant Professor of Damghan University
taghipour.a9@gmail.com

Mojtaba VALIBEIGI

Assistant Professor of Buein Zahra Technical University, Buein Zahra city, Qazvin province, Iran.
M.valibeigi@bzte.ac.ir
Mojtaba.valibeigi@gmail.com

Abstract

The relationship between tax and tourism receipts is one of the crucial issues in tourism literature and has been considered empirically in recent years.  For this purpose, the main objective of this paper is to determine the long-run relationship between tax ratio to GDP and tourism receipts in OIC selected countries during the 1990-2014. The econometric model for these countries has been estimated by applying dynamic OLS approach. The main findings of this study reveal that tax ratio has negative effect on the tourism receipts and GDP per capita and its growth have positive and significant effect on the tourism receipts in Islamic selected countries. Hence, the main policy implication of this paper is that the tourism managers in these countries should adopts policies to improve the tax revenue through the increase of product capacity. Moreover, the increasing of GDP per capita can improve the tourism receipts in these countries.

Keywords: Tourism, Taxation, Tax Incentives, GDP Per Capita, DOLS Approach

JEL classification: C23, L83, O49