Liquidity is fundamental to the well-being of financial institutions, particularly banks. It determines the growth and development of banks as it ensures the proper functioning of financial markets. This research aims to examine the impact of macroeconomic variables (GDP per capita, inflation rate, and unemployment rate) on banking liquidity in the 28 European Union member countries, Turkey, and Switzerland from 2008 to 2020. The study relied on secondary data from the databases of international organizations, including the World Bank and Eurostat, to compile its sample of 390 observations. Since the research spans numerous states over 13 years, panel data are used, which are estimated using a simple linear regression model using the least squares method. According to the regression findings, GDP per capita and the unemployment rate positively affect bank liquidity, whereas the inflation rate has a negative effect on bank liquidity. Also, the regression analysis did not find any statistically significant impact of GDP per capita and unemployment rate on bank liquidity. This study shows that the inflation rate is a statistically significant macroeconomic variable that affects banking liquidity.
This paper aims to investigate the effect of government expenditure on health and other relevant factors like health insurance, longevity, average age and death rate on economic growth in Western Balkan countries. Countries with higher levels of government expenditure on health tend to have higher levels of economic growth. Investment in healthcare may result in a greater supply of health incentives which may help human capital and enhance productivity and the economy’s performance. This paper uses annual data from 2000-2020 for the following Western Balkan countries: Albania, Bosnia, Herzegovina, Kosovo, Montenegro, Northern Macedonia and Serbia. This region represents a diverse set of countries at different stages of development with varying government expenditures on health. This provides an opportunity to study the impact of health on economic growth in an environment with a lot of "real-world" variation. The data is collected from the World Bank, National Statistical Offices and Eurostat. The dependent variable is economic growth, measured as Gross Domestic Product (GDP) per capita growth. The independent variables are government expenditure on health as a percentage of GDP, health insurance, longevity, the average age of the population, health expenditure per capita and the death rate. In order to measure the impact of individual factors, the study uses econometric models with fixed effects and random effects. The regression analysis results show that government expenditure on health has a positive and significant impact on economic growth in Western Balkans countries.
This research analyzed the effect Foreign Direct Investments (FDI) have on the levels of exports, imports, and trade balance of six Western Balkan countries (Kosovo, Albania, North Macedonia, Bosnia and Hercegovina, and Serbia). The impact of FDI was measured using panel data for 2000–2018 for the analyzed countries, estimated using a fixed effects specification. We found that an increase in FDI as a percentage of Gross Domestic Product (GDP) had a positive and significant effect on the level of exports and imports expressed as a percentage of GDP, although the effect on imports was greater. Furthermore, when we assessed the impact of FDI on the trade balance of the analyzed countries, we found that FDI had a significant negative effect on the level of the trade balance expressed as a percentage of GDP. These results can be attributed, among other reasons, to the fact that FDI causes an increase in aggregate demand in the short run, which, in developing and middle-income countries, cannot be covered by the domestic market; thus, the demand for imports increases more rapidly than the capacity to increase exports.
The purpose of this article is to investigate the influence of government expenditure on economic growth and the impact of tax income on government spending. The study examines Western Balkans nations from 2000 to 2020, using several econometric models and analyses to determine the link between these factors. The models utilized for econometric analysis include the Ordinary Least Squares model, the Fixed Effects model, and the Random Effect model. To produce more qualitative findings, the technique is based on these three regression econometric models. The data used are Panel data and span a period of 21 years . The research comprises six Western Balkan nations. According to the findings of this study, there is a positive and statistically significant association between government expenditure and economic development in the Western Balkan nations over the studied period. The findings also reveal that tax revenues have a positive and statistically significant influence on the expenditures of these nations' governments.
scite is a Brooklyn-based organization that helps researchers better discover and understand research articles through Smart Citations–citations that display the context of the citation and describe whether the article provides supporting or contrasting evidence. scite is used by students and researchers from around the world and is funded in part by the National Science Foundation and the National Institute on Drug Abuse of the National Institutes of Health.
customersupport@researchsolutions.com
10624 S. Eastern Ave., Ste. A-614
Henderson, NV 89052, USA
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.
Copyright © 2024 scite LLC. All rights reserved.
Made with 💙 for researchers
Part of the Research Solutions Family.