INVESTIGATING THE IMPACT OF ATM AND POS TERMINALS ON MONEY DEMAND IN NINE EUROPEAN COUNTRIES IN THE CONTEXT OF A RANDOM EFFECT MODEL AS THE APPROPRIATE PANEL DATA MODEL

Payam MOHAMMAD ALIHA

Ph.D student, Universiti Kebangsaan Malaysia (UKM), Malaysia

payammaliha@gmail.com

Tamat SARMIDI

Associate Professor Dr. at Faculty of Economics and Management, Universiti Kebangsaan Malaysia (UKM), Malaysia

tamat@ukm.edu.my

Fathin FAIZAH SAID

Associate Professor Dr. at Faculty of Economics and Management, Universiti Kebangsaan Malaysia (UKM), Malaysia

fatin@ukm.edu.my

Abstract

This study investigates the effects of financial innovations on the demand for money using panel data for 9 European countries from 2014 to 2018. Such models assist in controlling for unobserved heterogeneity when this heterogeneity is constant over time and correlated (fixed effects) or uncorrelated (random effects) with independent variables. Hausman test and Breusch and Pagan Lagrangian multiplier test (LM) both indicate that the random effects model is appropriate. We use the conventional money demand that is enriched with the number of automated teller machines (ATM) and the number of point-of-sale (POS) terminals to proxy for the financial innovations. The estimation result of the chosen random effects regression indicate that the elasticity of the demand for real money to POS is about 10 percent meaning that money demand is not elastic with regard to POS. Also, the estimated coefficient of ATM is not significant.

Keywords: EU, money demand, random effects, fixed effects, financial innovation, panel data

JEL classification: C13, C40, C51, E40, E44

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EXPLORING DYNAMICS BETWEEN THE SOCIOECONOMIC SECTORS FROM NORTH OF PORTUGAL AND GALICIA

Vítor João Pereira Domingues MARTINHO

Coordinator Professor with Habilitation, Agricultural School (ESAV) and CERNAS-IPV Research Centre, Polytechnic Institute of Viseu (IPV), Portugal; Centre for Transdisciplinary Development Studies (CETRAD), University of Trás-os-Montes and Alto Douro (UTAD), Portugal

vdmartinho@esav.ipv.pt

Jesyca Salgado BARANDELA

Facultad de Ciencias Empresariales y Turismo, Universidad de Vigo, España

j.salgado@uvigo.es

Abstract

Cultural and institutional differences could difficult to strengthen the relationships between regions from diverse countries. This situation is a little true for the cooperation among the North of Portugal and Galicia, but present and recent past show that there is promising news for the future. In this scenario, the main objective of this work is to identify the dynamics between the economic sectors of these two regions, stressing the advantages from a closer cooperation. To achieve these objectives, data from the Eurostat for the Portuguese and Spanish NUTS 3 were considered. These data were explored through panel data models from the Keynesian and Neoclassical models, allowing for spatial effects. The main findings stress that there are interesting catching-up effects between the North of Portugal and Galicia that could be explored deeper, namely between the manufacturing industry.

Keywords: Verdoorn law, Convergence Theory, Panel data.

JEL classification: C23, E12, E13, O47, R11

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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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