Economies2015, 3(4), 161-185; doi:10.3390/economies3040161 (registering DOI) - published 9 October 2015 Show/Hide Abstract
Abstract: This study investigates the impact of different schooling dimensions (primary, secondary and tertiary) on the intensity of intra-state conflicts in 25 African states during the period 1989–2008. It uses fixed-effects and Generalized Methods of Moments (GMM) estimators in an annualized panel data framework. Parameter estimates suggest the following (1) primary schooling broadly mitigates conflicts in Africa. However, in environments with high natural resource rents, it could ignite conflicts; (2) there is evidence, although not overwhelming, that secondary schooling potentially drives conflicts in Africa. There is also evidence that urbanization potentially drives conflicts in Africa. However, although secondary schooling and urbanization potentially drives conflicts, in environments where secondary schooling (urbanization) is high, urbanization (secondary schooling) mitigates conflicts; (3) there is no evidence of a strong direct positive impact of tertiary education on conflicts and conditioning on tertiary schooling, income inequality potentially drives conflicts in African states. However, in contexts where income inequality (tertiary schooling) is high, tertiary schooling (inequality) mitigates conflict. Two important policy implications follow from this study. First, in contexts where income inequality is high (for instance, in South Africa), governments should strive to foster tertiary education in order to reduce conflict. Second, where urbanization rates are high, they should foster both secondary and tertiary education. This study contributes to existing knowledge by clearly demonstrating the utility of distinguishing between different educational dimensions and the contexts wherein they matter for conflict mitigation in Africa.
Abstract: Applicability of Wagner’s hypothesis to six East Asian countries is studied for a period of nearly a half-century during which their economic growth has often been termed as a “miracle”. Despite the high rates of growth in most cases, there is little indication to support the hypothesis except for Japan and possibly Korea. This finding is broadly supported by a variety of tests of cointegration using time-series as well as panel data.
Abstract: Economies is entering its third year of existence and an impressive amount of high-quality research has already been published. It is fair to say that Economies has already established itself as an international, peer-reviewed, open access journal. [...]
Abstract: The welfare costs of inflation and inflation uncertainty are well documented in the literature and empirical evidence on the link between the two is sparse in the case of Egypt. This paper investigates the causal relationship between inflation and inflation uncertainty in Egypt using monthly time series data during the period January 1974–April 2015. To endogenously control for any potential structural breaks in the inflation time series, Zivot and Andrews (2002) and Clemente–Montanes–Reyes (1998) unit root tests are used. The inflation–inflation uncertainty relation is modeled by the standard two-step approach as well as simultaneously using various versions of the GARCH-M model to control for any potential feedback effects. The analyses explicitly control for the effect of the Economic Reform and Structural Adjustment Program (ERSAP) undertaken by the Egyptian government in the early 1990s, which affected inflation rate and its associated volatility. Results show a high degree of inflation–volatility persistence in the response to inflationary shocks. Granger-causality test along with symmetric and asymmetric GARCH-M models indicate a statistically significant bi-directional positive relationship between inflation and inflation uncertainty, supporting both the Friedman–Ball and the Cukierman–Meltzer hypotheses. The findings are robust to the various estimation methods and model specifications. The findings of this paper support the view of adopting inflation-targeting policy in Egypt, after fulfilling its preconditions, to reduce the welfare cost of inflation and its related uncertainties. Monetary authorities in Egypt should enhance the credibility of monetary policy and attempt to reduce inflation uncertainty, which will help lower inflation rates.
Abstract: In this paper, we study the cultural geography of the Veneto Region on the basis of a pseudo-diffusion approach to the analysis of the inherent semantic spatial data. We find somewhat surprising results, and, in particular, that Venice, indisputably the Region’s cultural hub in terms of concentration of activities and facilities, global visibility and attraction of resources, plays a marginal role in determining the momentum of cultural initiative at the regional level as of 2007 data. The areas with the greater momentum are relatively marginal ones but characterized by a strong presence of design-oriented companies that are actively engaging in culture-driven innovation in a context of gradually horizontally-integrated clusters. Our findings call for a revision of the traditional policy approaches that identify centralities in terms of concentration of activities and facilities based on past dynamics, and to design policies accordingly. We argue in favour of a more forward-looking, evidence-based approach.