Tag: R11

A NETWORK-BASED ALGORITHM FOR COMPUTING KEYNESIAN INCOME MULTIPLIERS IN MULTIREGIONAL SYSTEMS

Dimitrios TSIOTAS

Assistant Professor, Department of Regional and Economic Development, School of Applied Economic and Social Sciences, Agricultural University of Athens, Amfissa 33100, Greece

tsiotas@aua.gr

Abstract

In the context of the Keynesian “multiplier effect” approach, regional economic growth and development are conceived as the result of changes in demand stimulating an iterative process of returns of income. Aiming to revisit this established regional economic model, promote multidisciplinary thinking, enjoy better supervision of computations and intuitive interpretation of the results, broaden the applicability of the model, and serve educational purposes in regional economics and development, this paper proposes an algorithm for computing Keynesian income multipliers in multiregional systems. Building on network connectivity, estimations of the regional shares of imports, marginal propensity to consume, and changes in demand, the proposed algorithm provides a framework for standardizing computations of the multiplier effect in multiregional systems. The algorithm is implemented in two theoretical scenarios, contributing to a deeper conceptualization of the computation of the Keynesian income multipliers, and an empirical case of the land interregional commuting network in Greece, providing insights into the developmental dynamics of the labor market (demand for employment) in Greece. Overall, the analysis highlights the symbiotic relationship between the multiplier effect and network structure in regional markets, promotes multidisciplinary thinking in regional science and economics, and provides a code of this network-based algorithm to motivate further research.

Keywords: regional markets, multiplier effect; export-base model; demand for employment; interregional commuting

JEL classification: R11, R15, R23, R41

 pp. 25-46

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EMPLOYMENT IMPACT OF FIRMS’ INNOVATION: WHAT IS THE ROLE OF REGIONAL INSTITUTIONS? EVIDENCE FROM ITALY

Luca VOTA

Ph.D student, Department of Economics and Statistics (DISES) of the University of Salerno, Italy

lvota@unisa.it

Abstract

Employment effect of firms’ innovation is a widely studied topic at both cross-country and national level, while still few contributions deals with the local dimension. Moreover, the role of the institutional factors is still unexplored. In this manuscript, the author estimates the impact of private firms’ R&D spending, institutional quality and their interaction on the employment rate of the Italian regions. To accomplish his task, the author proposes two dynamic panel models and computes them through the Ordinary Least Squares (OLS), Fixed effects (FE) and System Generalized Method of Moments (GMM-SYS) regression tecniques. The obtained results suggest that the employment impact of firms’ innovation is negative, while the ability of the regional institutions to attract, support and cooperate with the innovative companies and the R&D investment programs jointly financed by regional governments and private firms positively affect the employment rate. The author has deduced appropriate policy implications from the provided evidence.

Keywords: Employment impact of firms’ innovation, R&D activity, Regional Economics

JEL classification: O30,R10, R11

 pp. 11-24

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DOES EUROPEAN UNION MEMBERSHIP RESULT IN QUALITY-OF-LIFE CONVERGENCE?

Joel I. DEICHMANN*¹

Professor of Global Studies

jdeichmann@bentley.edu

Dominique HAUGHTON¹

Professor of Mathematical Sciences

dhaughton@bentley.edu

Mingfei LI¹

Professor of Mathematical Sciences

mli@bentley.edu

Heyao WANG¹

Graduate Research Assistant

wang_heya@bentley.edu

*Corresponding Author

¹Members of the Data Analytic Research Team (DART)

Bentley University Waltham, MA 02452 USA

Abstract

This paper employs European Quality-of-life Survey (EQLS) responses from 2003, 2008, 2012, and 2016 to examine whether European Union (EU) enlargement helps meet the objectives of improved living standards and overall quality-of-life across the continent. The data set includes responses to forty questions across nine dimensions for all twenty-eight pre-Brexit EU member states, along with eight non-member states. Insights are captured through the systematic comparison of self-reported perceptions pooled at the country level before and after accession, as well as between member states and non-member states. Special attention is paid to the eleven post-communist countries that joined the EU in 2004, 2007, and 2013, which together represent the addition of one hundred million EU citizens. These include Estonia, Latvia, and Lithuania, Poland, Czech Republic, Slovakia, Hungary, Slovenia, Bulgaria, Romania, and Croatia. Based upon these findings, the paper concludes with speculation upon popular support for further enlargement in the wake of the 2007-08 Global Financial Crisis, the 2016-2020 Brexit process, and ongoing COVID-19 pandemic.

Keywords: European Union, Central and Eastern Europe, economic integration, European convergence

JEL classification: O10, O47, P20, P48, R11

 pp. 31-46

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