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Economies, Volume 8, Issue 1 (March 2020) – 24 articles

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Open AccessArticle
Global Financial System Outcomes after 2008: A Longitudinal Comparison
Economies 2020, 8(1), 24; https://doi.org/10.3390/economies8010024 - 24 Mar 2020
Viewed by 763
Abstract
This paper examines how the governance context and financial institutions may relate to different aspects of a country’s financial system before and after a crisis. Using a fixed-effects regression model for panel data and a comparative perspective, we assess longitudinal trends in the [...] Read more.
This paper examines how the governance context and financial institutions may relate to different aspects of a country’s financial system before and after a crisis. Using a fixed-effects regression model for panel data and a comparative perspective, we assess longitudinal trends in the functioning of the financial systems. This modeling allows us to explore how the level of development of 139 countries and conditions related to political stability, regulatory quality, and the rule of law, may have influenced financial system outcomes. We measure financial system outcomes across four dimensions: financial depth, efficiency, stability, and access. Our findings suggest that the explanatory variables had limited statistical significance on the proxy measures of financial system outcomes. Furthermore, the relationships were not consistent across all financial system outcome variables. These results suggest that political stability and the rule of law do influence depth and efficiency, respectively, as proxy indicators of financial system outcomes. Full article
(This article belongs to the Special Issue Public Finance and Budgeting)
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Open AccessArticle
Overdose Deaths and Entrepreneurial Activity
Economies 2020, 8(1), 23; https://doi.org/10.3390/economies8010023 - 23 Mar 2020
Viewed by 750
Abstract
Drug overdose deaths, primarily due to opioid addiction, have devastated communities in almost every area of the U.S. The economic impacts of the crisis include additional healthcare resources, unemployment, lost productivity, criminal justice costs, and other indirect impacts that have not yet been [...] Read more.
Drug overdose deaths, primarily due to opioid addiction, have devastated communities in almost every area of the U.S. The economic impacts of the crisis include additional healthcare resources, unemployment, lost productivity, criminal justice costs, and other indirect impacts that have not yet been researched. This study aims to estimate one potential impact of opioid dependency in communities by estimating the relationship between drug overdose deaths and entrepreneurship. In particular, the empirical models measure how entrepreneurship, as measured by the percentage of self-employed workers, changes in relation to the number of overdose deaths in all U.S. counties, controlling for a number of socioeconomic characteristics. The results suggest that overdose deaths are associated with significant declines in self-employment rates. The coefficients on overdose death rates are generally larger in magnitude for rural counties than for larger metro counties. Full article
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Open AccessArticle
Growth Dynamics, Multiple Equilibria, and Local Indeterminacy in an Endogenous Growth Model of Money, Banking and Inflation Targeting
Economies 2020, 8(1), 22; https://doi.org/10.3390/economies8010022 - 18 Mar 2020
Viewed by 773
Abstract
We develop an overlapping generations monetary endogenous growth (generated by productive public expenditures) model with inflation targeting, characterized by relocation shocks for young agents, which in turn generates a role for money (even in the presence of the return-dominating physical capital) and financial [...] Read more.
We develop an overlapping generations monetary endogenous growth (generated by productive public expenditures) model with inflation targeting, characterized by relocation shocks for young agents, which in turn generates a role for money (even in the presence of the return-dominating physical capital) and financial intermediaries. Based on this model, we show that growth dynamics emerge with a S-shaped growth path producing three equilibria. The low and high-growth equilibria are stable, but locally indeterminate, while the medium-growth equilibrium is unstable. Since, government expenditure is productive in our model, a higher inflation-target would translate into higher growth, but under multiple equilibria, this is not necessarily always the case. Full article
(This article belongs to the Special Issue Macroeconomics and Monetary Policy)
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Open AccessArticle
The Archipelago of Cultural and Creative Industries: A Case Study of the Basque Country
Economies 2020, 8(1), 21; https://doi.org/10.3390/economies8010021 - 17 Mar 2020
Viewed by 847
Abstract
The cultural and creative industries (e.g., digital/audiovisual content, publishing and print media, etc.) constitute an emerging business sector focused on aligning cultural and creative production with profitability and market criteria that encompasses a diverse range of entities, generates employment, boosts GDP (Gross Domestic [...] Read more.
The cultural and creative industries (e.g., digital/audiovisual content, publishing and print media, etc.) constitute an emerging business sector focused on aligning cultural and creative production with profitability and market criteria that encompasses a diverse range of entities, generates employment, boosts GDP (Gross Domestic Product) and drives innovation. This paper analyses the impact of the cultural and creative industries on the economy of the Basque Country and provides information concerning the number of companies present in this sector, their legal structures, annual turnovers, size in terms of the number of people they employ and relative ability to secure public funding for entrepreneurial support and creative projects. Our findings indicate that businesses of this nature in the Basque Country form an ecosystem similar to an archipelago in which companies with a strong entrepreneurial focus, high annual turnovers and a national and international clientele coexist alongside smaller, less profit-oriented organisations devoted to regional cultural development. Full article
(This article belongs to the Special Issue Leadership in Business and Economics)
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Open AccessFeature PaperReview
Review on Efficiency and Anomalies in Stock Markets
Economies 2020, 8(1), 20; https://doi.org/10.3390/economies8010020 - 12 Mar 2020
Cited by 2 | Viewed by 1035
Abstract
The efficient-market hypothesis (EMH) is one of the most important economic and financial hypotheses that have been tested over the past century. Due to many abnormal phenomena and conflicting evidence, otherwise known as anomalies against EMH, some academics have questioned whether EMH is [...] Read more.
The efficient-market hypothesis (EMH) is one of the most important economic and financial hypotheses that have been tested over the past century. Due to many abnormal phenomena and conflicting evidence, otherwise known as anomalies against EMH, some academics have questioned whether EMH is valid, and pointed out that the financial literature has substantial evidence of anomalies, so that many theories have been developed to explain some anomalies. To address the issue, this paper reviews the theory and literature on market efficiency and market anomalies. We give a brief review on market efficiency and clearly define the concept of market efficiency and the EMH. We discuss some efforts that challenge the EMH. We review different market anomalies and different theories of Behavioral Finance that could be used to explain such market anomalies. This review is useful to academics for developing cutting-edge treatments of financial theory that EMH, anomalies, and Behavioral Finance underlie. The review is also beneficial to investors for making choices of investment products and strategies that suit their risk preferences and behavioral traits predicted from behavioral models. Finally, when EMH, anomalies and Behavioral Finance are used to explain the impacts of investor behavior on stock price movements, it is invaluable to policy makers, when reviewing their policies, to avoid excessive fluctuations in stock markets. Full article
Open AccessArticle
Understanding German FDI in Latin America and Asia: A Comparison of GLM Estimators
Economies 2020, 8(1), 19; https://doi.org/10.3390/economies8010019 - 10 Mar 2020
Viewed by 880
Abstract
The growth of Foreign Direct Investment (FDI) in developing countries over the last decade has attracted an intense academic and policy-oriented interest for its determinants. Despite the gravity model being considered a useful tool to approximate bilateral FDI flows, the literature has seen [...] Read more.
The growth of Foreign Direct Investment (FDI) in developing countries over the last decade has attracted an intense academic and policy-oriented interest for its determinants. Despite the gravity model being considered a useful tool to approximate bilateral FDI flows, the literature has seen a growing debate in relation to its econometric specification, so that which is the best estimator for the gravity equation is far from conclusive. This paper examines the determinants of German outward FDI in Latin America and Asia for the period 1996-2012 by evaluating the performance of alternative Generalized Linear Model (GLM) estimators. Our findings indicate that Negative Binomial Pseudo Maximum Likelihood (NBPML) is the estimator best matched to our data, followed by Gamma Pseudo Maximum Likelihood (GPML). Furthermore, German FDI in Latin America is found to be predominantly vertical in nature, whereas that in Asia is mainly market-seeking. Full article
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Open AccessArticle
Time-Varying Risk Aversion and the Profitability of Carry Trades: Evidence from the Cross-Quantilogram
Economies 2020, 8(1), 18; https://doi.org/10.3390/economies8010018 - 05 Mar 2020
Viewed by 890
Abstract
This paper examines the predictive power of time-varying risk aversion over payoffs to the carry trade strategy via the cross-quantilogram methodology. Our analysis yields significant evidence of directional predictability from risk aversion to daily carry trade returns tracked by the Deutsche Bank G10 [...] Read more.
This paper examines the predictive power of time-varying risk aversion over payoffs to the carry trade strategy via the cross-quantilogram methodology. Our analysis yields significant evidence of directional predictability from risk aversion to daily carry trade returns tracked by the Deutsche Bank G10 Currency Future Harvest Total Return Index. The predictive power of risk aversion is found to be stronger during periods of moderate to high risk aversion and largely concentrated on extreme fluctuations in carry trade returns. While large crashes in carry trade returns are associated with significant rises in investors’ risk aversion, we also found that booms in carry trade returns can be predicted at high quantiles of risk aversion. The results highlight the predictive role of extreme investor sentiment in currency markets and regime specific patterns in carry trade returns that can be captured via quantile-based predictive models. Full article
(This article belongs to the Special Issue Asset Pricing, Investment, and Trading Strategies)
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Open AccessArticle
Food Consumption within Greek Households: Further Evidence from a National Representative Sample
Economies 2020, 8(1), 17; https://doi.org/10.3390/economies8010017 - 25 Feb 2020
Viewed by 984
Abstract
The aim of this study is to characterize the relationship between food consumption and socio-demographic characteristics in several groups of individuals. This is achieved by capturing the quantity of food purchased in categories on a microeconomic level. The empirical analysis is approached through [...] Read more.
The aim of this study is to characterize the relationship between food consumption and socio-demographic characteristics in several groups of individuals. This is achieved by capturing the quantity of food purchased in categories on a microeconomic level. The empirical analysis is approached through the estimation of (a) expanded generalized linear models, (b) quantile regression models, (c) quadratic almost ideal demand system models and (d) Deaton’s (1988) approach. The results reveal that the composition of a household has a significant impact on the quantity of food consumed. In addition, price and income elasticities are estimated, confirming that the majority of food items are inelastic with respect to price and income except for meat. These findings can be used as a basis for considering food policy implications while evaluating the potential gains from applying specific policies. Full article
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Open AccessArticle
A Climate-Economy Policy Model for Barbados
Economies 2020, 8(1), 16; https://doi.org/10.3390/economies8010016 - 25 Feb 2020
Viewed by 1075
Abstract
Small island developing states (SIDS), such as Barbados, must continually adapt in the face of uncertain external drivers. These include demand for exports, tourism demand, and extreme weather events. Climate change introduces further uncertainty into the external drivers. To address the challenge, we [...] Read more.
Small island developing states (SIDS), such as Barbados, must continually adapt in the face of uncertain external drivers. These include demand for exports, tourism demand, and extreme weather events. Climate change introduces further uncertainty into the external drivers. To address the challenge, we present a policy-oriented simulation model that builds upon prior work by the authors and their collaborators. Intended for policy analysis, it follows a robust decision making (RDM) philosophy of identifying policies that lead to positive outcomes across a wide range of external changes. While the model can benefit from further development, it illustrates the importance for SIDS of incorporating climate change into national planning. Even without climate change, normal variation in export and tourism demand drive divergent trajectories for the economy and external debt. With climate change, increasing storm damage adds to external debt as the loss of productive capital and need to rebuild drives imports. Full article
(This article belongs to the Special Issue Tourism and Economic Development)
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Open AccessArticle
On ‘Economies of Sequence’ in the Architectural Theory of Agglomeration: A Case of the Kyoto Tourism Industry
Economies 2020, 8(1), 15; https://doi.org/10.3390/economies8010015 - 24 Feb 2020
Viewed by 909
Abstract
This paper focuses on an architecture-based theory of agglomeration. An agglomeration is composed of a number of segments such as physical infrastructure facilitation including airports and stations. ‘Economies of sequence’ can be defined as the sequencing of the segments toward the efficient building [...] Read more.
This paper focuses on an architecture-based theory of agglomeration. An agglomeration is composed of a number of segments such as physical infrastructure facilitation including airports and stations. ‘Economies of sequence’ can be defined as the sequencing of the segments toward the efficient building of an agglomeration. The main three findings are as follows: first, foreign nationals from Kansai International Airport Granger-cause the number of tourists to Kyoto Prefecture, foreign nationals from Kansai International Airport Granger-cause the number of foreign tourists to Kyoto City, and passengers at JR Kyoto Station Granger-cause the number of tourists to Kyoto City; second, the number of foreign tourists Granger-causes revenues in the tourism industry in the cases of Malaysia, the United States of America, and China; and third, the promotion of the tourism industry to redevelop Kyoto station mall in 1997, the “Kyoto Winter Special” campaign in 2003, and the global “Travel & Leisure” destination SNS (social networking service) promotion in 2015 were effective in building the segments of a tourist agglomeration. In conclusion, the economies of sequence of the segments of a tourism industry agglomeration are as follows: the first priority is to reduce transportation costs for tourists through the renovation of airports and stations, and the next segments for enhancing the level of cultural elements are a branding strategy through the promotion of the tourist industry by campaigns and projects using social network systems. Full article
(This article belongs to the Special Issue Industrial policy for growth)
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Open AccessArticle
Homogeneity of Determinants in the Financial Sector and Investment in EU Countries
Economies 2020, 8(1), 14; https://doi.org/10.3390/economies8010014 - 17 Feb 2020
Viewed by 959
Abstract
This paper evaluates the homogeneity of the financial markets in European Union (EU) countries and the impact of determinants of the financial sector in individual EU countries on the investment by economic entities in the given countries. The objective of the paper is [...] Read more.
This paper evaluates the homogeneity of the financial markets in European Union (EU) countries and the impact of determinants of the financial sector in individual EU countries on the investment by economic entities in the given countries. The objective of the paper is to evaluate the homogeneity of financial sectors in EU countries in terms of individual indicators. The paper also evaluates the interdependence between the loan amount (debt and liabilities of the financial sector) on one side and the selected investments on the other. This paper uses the statistical method of correlation analysis to determine the strength and closeness of dependence among indicators, and the multidimensional statistical method of cluster analysis to determine the homogeneity among the individual countries. The results show that, in terms of financial markets, there is still a difference between developed countries in terms of Gross Domestic Product and the rest of the EU Member States. However, in the case of investment activity that is no longer. Partial integration therefore takes place within the EU, in terms of financial markets. Full article
(This article belongs to the Special Issue Macroeconomics and Monetary Policy)
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Open AccessReview
Challenges of Electronic Reverse Auctions in Construction Industry—A Review
Economies 2020, 8(1), 13; https://doi.org/10.3390/economies8010013 - 14 Feb 2020
Viewed by 1046
Abstract
The innovation of construction procurement by means of electronic reverse auctions is a controversial subject of discussion among both researchers and practitioners. This paper consolidates and critically discusses current knowledge concerning the adoption and use of electronic reverse auctions in the light of [...] Read more.
The innovation of construction procurement by means of electronic reverse auctions is a controversial subject of discussion among both researchers and practitioners. This paper consolidates and critically discusses current knowledge concerning the adoption and use of electronic reverse auctions in the light of specific features of the construction industry. A systematic literature review has been employed to select papers indexed in Scopus and Web of Science databases. The findings of the study indicate that studies are addressing especially five main areas, i.e., suitability of electronic reverse auction (eRA) for construction tenders, related drivers and barriers, ethical considerations, savings potential and bidding behavior, and bid distribution. Accordingly, the authors are suggesting three directions in which future research should focus on mutual interaction of electronic reverse auctions and long-term effects on construction project outcomes. Full article
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Open AccessArticle
Sustainable Enterprise Capital Management
Economies 2020, 8(1), 12; https://doi.org/10.3390/economies8010012 - 12 Feb 2020
Viewed by 981
Abstract
The paper presents the idea of a new method of sustainable enterprise capital management. The idea is based on a principle that states that the faster an enterprise achieves and maintains a balance between its capitals, the more effective the management is. The [...] Read more.
The paper presents the idea of a new method of sustainable enterprise capital management. The idea is based on a principle that states that the faster an enterprise achieves and maintains a balance between its capitals, the more effective the management is. The concept forms a part of the search for an alternative to net profit, which is a basic but outdated measure in modern times. After the introduction, the author outlines the basic principles and foundations of the new method. After introducing the principles and assumptions of the new idea, the author, in his paper, describes the studies that aimed at a practical checking of the possibilities of measuring the effectiveness of the company’s economic condition and the effects of management in accordance with the new principles. They were carried out in one of the food industry companies, whose shares are listed on the Warsaw Stock Exchange. Two new economic indicators were used in the study. The general conclusion of the study is as follows: new principles of sustainable capital management can be applied in practice to measure the effectiveness of the enterprise and the work of the management board, but there are still many conditions and problems listed in the paper that should be the subject of further work. The issue that still needs a lot of research within the whole idea is the problem of valuing the current and optimal level of corporate capital. The conclusions outline the strengths and weaknesses of the new method. Full article
Open AccessArticle
Estimation and Analysis of Food Demand Patterns in Vietnam
Economies 2020, 8(1), 11; https://doi.org/10.3390/economies8010011 - 11 Feb 2020
Viewed by 1049
Abstract
The paper analyzes food consumption patterns of Vietnamese households, using a complete demand system and socio-demographic information. Demand elasticities are estimated applying a modified Almost Ideal Demand System (AIDS) model on the Vietnamese household survey data in 2006. The results indicate that food [...] Read more.
The paper analyzes food consumption patterns of Vietnamese households, using a complete demand system and socio-demographic information. Demand elasticities are estimated applying a modified Almost Ideal Demand System (AIDS) model on the Vietnamese household survey data in 2006. The results indicate that food consumption patterns in Vietnam are affected by income, price, as well as socio-economic and geographic factors. All food has positive expenditure elasticities and negative own-price elasticities. Rice has mean expenditure elasticity of 0.36 and mean own-price elasticity of −0.80. Using the estimated elasticities, the study finds that when rice prices increase by 20 percent, average household welfare rises by 1.3 percent, yet it is important to note that the benefits and costs are not spread evenly across the population. Overall, middle-income households gain the most, while the poorest households gain the least from higher rice prices. This indicates that support programs should target the poorest quintile, especially the poor in the regions hit hardest by higher prices. More generally, our study points out that targeted food policies should be formulated based on specific food demand patterns in the groups. Full article
Open AccessEditorial
Editorial Statement and Research Ideas for Efficiency and Anomalies in Stock Markets
Economies 2020, 8(1), 10; https://doi.org/10.3390/economies8010010 - 10 Feb 2020
Cited by 1 | Viewed by 935
Abstract
The Efficient Market Hypothesis states that it is impossible for an investor to outperform the market because all available information is already built into stock prices. However, some anomalies could persist in stock markets while some other anomalies could appear, disappear and re-appear [...] Read more.
The Efficient Market Hypothesis states that it is impossible for an investor to outperform the market because all available information is already built into stock prices. However, some anomalies could persist in stock markets while some other anomalies could appear, disappear and re-appear again without any warning. To explore new theories with applications in this direction, in this editorial, we suggest ideas to authors on what types of papers we will accept for publication in the areas of on Efficiency and Anomalies in Stock Markets. We will discuss some papers published in the special issue of Efficiency and Anomalies in Stock Markets. Full article
Open AccessArticle
The Impact of Thailand’s Openness on Bilateral Trade between Thailand and Japan: Copula-Based Markov Switching Seemingly Unrelated Regression Model
Economies 2020, 8(1), 9; https://doi.org/10.3390/economies8010009 - 30 Jan 2020
Viewed by 1153
Abstract
The purpose of this paper is to analyze the impact of trade openness and the factors based on the gravity model on the bilateral trade flows between Thailand and Japan. The factors consist of GDP, distance, trade openness, and exchange rate. Bilateral trade [...] Read more.
The purpose of this paper is to analyze the impact of trade openness and the factors based on the gravity model on the bilateral trade flows between Thailand and Japan. The factors consist of GDP, distance, trade openness, and exchange rate. Bilateral trade is composed of two flows: Thailand’s export flow to Japan, and Thailand’s import flow from Japan. The specified gravity equations are estimated by Copula-based Markov switching seemingly unrelated regression approach. The best-fitting model is chosen based on the lowest Akaike information criterion (AIC) and Bayesian information criterion (BIC). The Normal and Student’s t distributions are for Thailand’s export equation and Thailand’s import equation, respectively. The Student’s t copula is applied for joint distribution. Analyzing the bilateral trade flow is separated into two situations, namely the high and the low growth markets. Empirical results show that distance provides a positive effect on the export in a high growth regime, but a negative impact on the export in a low growth regime. As for Thailand’s import flow, all variables, but especially trade openness, provide strong evidence supporting significance for both regimes. For the GDPs of both Thailand and Japan, trade openness and the exchange rate increase import flow in a high growth market. Meanwhile, the exchange rate decreases import flow in a low growth market. The Markov Switching Probability Estimation notes that Thailand’s trading with Japan is mostly in the fast-growing market. Full article
(This article belongs to the Special Issue Computational Macroeconomics)
Open AccessArticle
Does the Source of Remittance Matter? Differentiated Effects of Earned and Unearned Remittances on Agricultural Productivity
Economies 2020, 8(1), 8; https://doi.org/10.3390/economies8010008 - 23 Jan 2020
Cited by 1 | Viewed by 1249
Abstract
This paper analyzes the effect of earned and unearned remittances on agricultural productivity in Nepal. This approach differs from the existing practice of studying the impact of total remittances on socio-economic outcomes. In particular, we disaggregate total remittances into earned and unearned remittances, [...] Read more.
This paper analyzes the effect of earned and unearned remittances on agricultural productivity in Nepal. This approach differs from the existing practice of studying the impact of total remittances on socio-economic outcomes. In particular, we disaggregate total remittances into earned and unearned remittances, and isolate their impacts on productivity—an individual household’s per labor-hour production of all agricultural output at the market value. Methodologically, we follow a three-stage least squares (3-SLS) approach to overcome the potential endogeneity concerns. We provide evidence that unearned remittances are more effective than earned remittances in increasing agricultural productivity. These results can be useful in understanding the migration-remittance-productivity nexus in Nepal as well as other similar socioeconomic societies from South Asia. Full article
(This article belongs to the Special Issue Productivity and Efficiency Analysis)
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Open AccessEditorial
Acknowledgement to Reviewers of Economies in 2019
Economies 2020, 8(1), 7; https://doi.org/10.3390/economies8010007 - 20 Jan 2020
Viewed by 1096
Abstract
The editorial team greatly appreciates the reviewers who have dedicated their considerable time and expertise to the journal’s rigorous editorial process over the past 12 months, regardless of whether the papers are finally published or not [...] Full article
Open AccessArticle
External Shocks, Trade Margins, and Macroeconomic Dynamics
Economies 2020, 8(1), 6; https://doi.org/10.3390/economies8010006 - 14 Jan 2020
Viewed by 1337
Abstract
This paper studies the role of the exchange rate regime for trade of new products. It first provides VAR evidence that a rise in external productivity shifts trade away from new products and more so in fixed regimes. Then, it presents a model [...] Read more.
This paper studies the role of the exchange rate regime for trade of new products. It first provides VAR evidence that a rise in external productivity shifts trade away from new products and more so in fixed regimes. Then, it presents a model with firm dynamics in line with this evidence. We argue that exchange rate policy can affect firms’ entry decisions with consequences for the competitiveness of a country’s exports well beyond the short run. In our setup, fixed exchange rates can foster the competitiveness of firms that trade new products, while flexible rates favor firms that produce mature products. Full article
(This article belongs to the Special Issue Macroeconomics and Monetary Policy)
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Open AccessArticle
Does Schooling Causally Impact Non-Cognitive Skills? Evidence from Elimination of Social Security Student Benefits
Economies 2020, 8(1), 5; https://doi.org/10.3390/economies8010005 - 14 Jan 2020
Viewed by 1407
Abstract
A limited number of studies have investigated the impacts of education on non-cognitive skills, yet they offer mixed results. A few studies suggest no impact, but others report positive impacts of education on non-cognitive skills. In this paper, we apply the elimination of [...] Read more.
A limited number of studies have investigated the impacts of education on non-cognitive skills, yet they offer mixed results. A few studies suggest no impact, but others report positive impacts of education on non-cognitive skills. In this paper, we apply the elimination of Social Security student benefits that took place in the United States in 1982 to study the impacts of education on non-cognitive skills, as measured by the Rotter Locus of Control Scale and Rosenberg Self-Esteem Scale. We apply eligibility for aid due to the death of father to avoid endogeneity in our analysis. Our results suggest that non-cognitive skills improve during the college education years, but the causality relationship from college education to non-cognitive skills disappears to a high extent when the prior levels of non-cognitive skills are controlled for. Full article
(This article belongs to the Special Issue Labor and Development)
Open AccessFeature PaperArticle
Caveat Emptor: Foreign Aid and Entrepreneurship
Economies 2020, 8(1), 4; https://doi.org/10.3390/economies8010004 - 06 Jan 2020
Viewed by 1356
Abstract
In the last 60 years, the results of development aid have been mixed. Thus far, it has been mostly the aid recipient countries, which have been held responsible for aid’s shortcomings. That focus is misplaced, however, since the donor countries, through development aid, [...] Read more.
In the last 60 years, the results of development aid have been mixed. Thus far, it has been mostly the aid recipient countries, which have been held responsible for aid’s shortcomings. That focus is misplaced, however, since the donor countries, through development aid, also export some of their own institutions and values to the recipient countries affecting the recipients’ rate of entrepreneurship and income. This study demonstrates how donor countries vary widely in both the type and quality of their institutions and values, leading to diverging economic outcomes. The results indicate that recipient countries should pay serious attention to who their development partner is. In particular, recipients would want to avoid aid from low institutional quality donors with perceived anti-market attitudes. Finally, it is argued that development aid might become more efficient if it moved away from the bilateral, towards the multilateral, mode. Full article
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Open AccessArticle
Eco-Innovation Activities in the Czech Economy 2008–2014: Impact of the Eco-Innovative Approach to the Profit Stream and Differences in Urban and Rural Enterprises
Economies 2020, 8(1), 3; https://doi.org/10.3390/economies8010003 - 02 Jan 2020
Viewed by 1328
Abstract
The environmental benefits from the eco-innovation activities of enterprises have the nature of reduced material or water use per unit of output, less pollution and waste, better CO2 ‘footprint’ in production and subsequent business processes. The socioeconomic impacts are associated with circular [...] Read more.
The environmental benefits from the eco-innovation activities of enterprises have the nature of reduced material or water use per unit of output, less pollution and waste, better CO2 ‘footprint’ in production and subsequent business processes. The socioeconomic impacts are associated with circular economy benefits like reduced energy use, decreased pollution and waste, and well-organized recycling possibilities of the product after use. The goal of this paper is to evaluate this innovative approach in the Czech economy. The hypotheses are aimed at the localization of enterprises, appropriability, and characteristics of enterprises that introduce eco-innovations to markets. The dataset is provided by the Czech Statistical Office and contains observations about the innovation activities of firms. Eco-innovation was surveyed in 2008 and 2014. This paper utilizes the estimation principles of CDM (Crépon, Duguet, and Mairesse) method at the firm level. The results suggest that rural–urban separation has no impact on the financial R&D intensity but urban enterprises have a higher probability to engage in innovation activities. The probability to introduce new-to-the-market innovations and eco-innovations is not dependent on localization. High-tech and knowledge-intensive industries have a lower probability to introduce eco-innovations to the market. The change in localization of enterprises to rural areas contributed to the higher sales form innovated goods and services. Higher appropriability was also observed in product eco-innovators. This paper offers a synthesis of factors that stimulate eco-innovation and shows that eco-innovation is a viable and sustainable innovative approach for rural and urban enterprises and identifies directions for future research. Full article
(This article belongs to the Special Issue Innovation and Socioeconomic Development)
Open AccessArticle
Regime Type, Issue Type and Economic Sanctions: The Role of Domestic Players
Economies 2020, 8(1), 2; https://doi.org/10.3390/economies8010002 - 27 Dec 2019
Viewed by 1548
Abstract
This analysis highlights the significant role that domestic actors play in determining the outcomes of economic sanctions. It models the behavior of the main opposition party during an economic sanction episode, and introduces two commonly used variables when considering the effectiveness of economic [...] Read more.
This analysis highlights the significant role that domestic actors play in determining the outcomes of economic sanctions. It models the behavior of the main opposition party during an economic sanction episode, and introduces two commonly used variables when considering the effectiveness of economic sanctions—regime type and issue type—from a different perspective. Using Bayesian probabilities and a two-stage game-theoretic approach, the analysis finds that states are more likely to impose economic sanctions related to security issues rather than to nonsecurity issues. The tendency to impose sanctions to coerce action on security-related issues is higher when opposition parties in the sanctioning state object to the sanctions. The findings demonstrate that sanctions are more effective when they are supported by the opposition in sender states, as well as target states. Consistent with the literature, this analysis finds that sanctions are more effective when they are targeted against democracies. The game results indicate that sanctions are more successful when they relate to security issues. This paper supplies policymakers with a simple criterion for economic sanctions successs comprised of the support of the opposition within the sender state, that the issue should be of high stakes, and there is support for the economic sanctions from a viable opposition within the target state. Full article
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Open AccessArticle
The Effect of Rainfall on Economic Growth in Thailand: A Blessing for Poor Provinces
Economies 2020, 8(1), 1; https://doi.org/10.3390/economies8010001 - 18 Dec 2019
Viewed by 1697
Abstract
Rainfall is related to economic growth and generally has beneficial impacts on dry and poor areas that are mostly dependent on rainfed agriculture. Thailand is a service-based, upper middle-income country with a tropical climate although rainfall varies regionally. The volume of precipitation in [...] Read more.
Rainfall is related to economic growth and generally has beneficial impacts on dry and poor areas that are mostly dependent on rainfed agriculture. Thailand is a service-based, upper middle-income country with a tropical climate although rainfall varies regionally. The volume of precipitation in the northern and northeastern regions is rather low while the southern region has the highest rainfall due to its narrow topography running north-south bordering the Andaman Sea to the west and the Gulf of Thailand to the east. The present study explored the effect of rainfall on the growth of the gross provincial product (GPP) by economic sector and subsector using provincial-level panel data from 1995 to 2015. The feasible generalised least squares (FGLS) estimator with fixed effect was used in the regression models. We found that the main impacts of the weather occurred through rainfall and reduced GPP growth at the national level. For the sector level, the results showed that rainfall had a significant negative impact on the agricultural and service sectors while it had a positive but not significant impact on the industrial sector. However, rainfall remains vital in poor regions although it could be detrimental to certain subsectors in those regions. The results confirmed that the positive effects of rainfall mostly affected the economies of poor provinces and suggested that average rainfall could be the key climate effect on economic growth in Thailand. Full article
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