Tag: O47

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

read more

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

read more

SPATIAL LINKAGE BETWEEN QUALITY OF INSTITUTION, NATURAL RESOURCES MANAGEMENT WITH GDP PER CAPITA IN D8 COUNTRIES (DURBIN MODEL IN PANEL DATA)

Farzaneh KHALILI

Assistant Professor of Economics, Islamic Azad University, Abhar Branch (Corresponding Author)

farzaneh_khalili2001@yahoo.com

Majid AFSHARIRAD

Associate Professor of Economics, Faculty of Economics, Kharazmi University, Tehran, Iran

 m.feshari@gmail.com

Abdolrahim HASHEMI DIZAJ

Assistant Professor of Management and Economics, Mohaghegh Ardabili University

a.hashemi@uma.ac.ir

Mehdi YAZDANSHENAS BAHOGHOGH

Ph.D Candidate of Economics, Islamic Azad University, Abhar Branch

nnn_yazdanshenas@yahoo.com

Abstract

Suitable economic growth has always been one of the priorities of any economic system. Meanwhile, economists have tried to achieve this goal by determining the factors affecting economic growth. At first, the main emphasis was on the physical capital and labor force, and the natural resources management. However, institutional factors, including natural resource management, emerged as a determinant of economic growth. In this regard, in this paper, the effect of institutions and management of natural economic resources on GDP per capita as a proxy for economic growth have been investigated by applying spatial regression models and Durbin model in the D8 countries during the period of 1996-2019. The empirical results of model estimation showed a positive and significant effect of natural resource management on economic growth of these countries. Moreover, the effect of physical capital, human capital, foreign investment accumulation and natural resources on economic growth is positive and significant. In addition, the effect of neighborhood and spillover impact of institutional quality on the economic growth has been confirmed in D8 countries.

Keywords: GDP Per Capita, Institutions Quality, Natural Resource Management, D8 Countries.

JEL classification: C23, O47, I25

 pp. 239-256

read more