Economic growth and government size in developed European countries: A panel threshold approach

Hajamini, Mehdi; Falahi, Mohammad Ali

doi:10.1016/j.eap.2017.12.002

Cited by 60 publications

(62 citation statements)

References 92 publications

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“…Hajamini and Mohammad suggest that the panel threshold regression method can be more reliable than the cross-sectional and time-series models [96]. The structural equation for the basic panel threshold is as follows:…”

Section: Methodsmentioning

confidence: 99%

“…Hansen suggests that the observations be divided into two regimes, depending on whether the threshold q is smaller or larger than the r parameter [96]. The regimes are distinguished by the slope coefficients: β 1 and β 2 .…”

Section: Methodsmentioning

confidence: 99%

“…To control for the effect of the other variables on economic growth, we apply the following control variables according to the recommendations of previous literature [56,62,66,96]: The ratio of the total investment in fixed assets to GDP as capital investment (INV), the ratio of the length of the highway roads to the county area as transportation accessibility (HD), and the proportion of employees in a tertiary industry to total employees as industrial structure (IS). In addition, considering that the Wenchuan earthquake may affect the economic growth, we add the dummy variable for Y2008 to the model.…”

Section: Datamentioning

confidence: 99%

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Threshold Effect of Tourism Development on Economic Growth Following a Disaster Shock: Evidence from the Wenchuan Earthquake, P.R. China

Zhang

2019

Sustainability

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To examine whether tourism can effectively stimulate economic growth following a disaster shock, we apply a panel threshold regression technique to test the threshold effect of tourism development on economic growth of the 36 Wenchuan earthquake-affected counties in 2008-2016. The empirical results using the panel fixed-effects model show that tourism significantly contributes to economic growth, supporting the validity of the tourism-led growth hypothesis (TLGH) for the disaster-affected destinations. The results of the panel threshold regression model also indicate a threshold effect of tourism development on economic growth, implying that counties with different conditions of tourism specialization and industrial structure experience different impacts on the tourism-growth nexus. Specifically, the estimated coefficients of tourism on economic growth decrease with the levels of tourism specialization and industrial structure exceeding the threshold value. Based on the Tourism Area Life Cycle theory (TALC), we further divide the 36 disaster-stricken counties into six types based on the evolution of tourism specialization: Exploration-stage type, involvement-stage type, transition-stage type, development-stage type, consolidation-stage type, and stagnation-stage type. The empirical findings and managerial implications discussed are generally applicable to policymakers seeking new ways to invigorate the economy in other disaster-affected destinations.Note: Notice of the State Council of China on printing and distributing the general plan for recovery and reconstruction after the Wenchuan Earthquake announced the 39 disaster-stricken counties of the Sichuan province that were seriously affected by the Wenchuan earthquake. They include:

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Section: Methodsmentioning

confidence: 99%

Section: Methodsmentioning

confidence: 99%

Section: Datamentioning

confidence: 99%

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Threshold Effect of Tourism Development on Economic Growth Following a Disaster Shock: Evidence from the Wenchuan Earthquake, P.R. China

Zhang

2019

Sustainability

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“…The economic growth literature demonstrates a non-linear correlation between the amount of state financing and economic growth. This correlation is a U-shaped curve, which assists with determining the optimal proportion of public spending (Mohammad and Falahib 2018). During the economic turbulences, recessions, or deep crises, actors prefer to hold liquidity (Sahin 2018).…”

Section: Introductionmentioning

confidence: 99%

Construction Sector Role in Gross Fixed Capital Formation: Empirical Data from Russia

Stupnikova

Sukhadolets

2019

Economies

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The purpose of this study was to research and understand the interrelations between the growth of gross fixed capital formation (GFCF), the volume of construction industry, supply of interindustry balance, and amount of fixed-asset investments in Russia between 2000 and 2016. The autoregressive distributed-lagged (ARDL) bound testing methodology and regression analysis were applied to evaluate the cointegration and influence of construction industry volume on gross fixed-capital formation. Empirical studies on the role of the construction industry are at the forefront of economic research; however, ARDL modeling studies of GFCF have yet to be conducted in Russia. The study revealed a non-linear causation between construction industry volume and the growth in GFCF over a long time period. The correlation was stationary and cointegrated. Fixed investment positively affected gross fixed capital formation only in periods of economic expansion, whereas the effectiveness of fixed-asset investments had greater volatility in times of crisis. The construction industry was not practically affected by crisis shocks, demonstrating a permanent stationarity in the causal relationship with GFCF, whereas causal relations between GFCF and the supply of interindustry balance were absent. The results are important for further research in the field of economic growth, the development of a national budget and investment policy, as well as investment project selection.

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“…Sustainable economic growth was measured using real GDP (an inflation-adjusted growth index) as used in the work of Alier (2009); Anand & Sen (2000); Böhringer & Jochem (2007); Henderson et al, (2012); Raudino (2016). However, government expenditure as in Afonso & Fernandes (2006); Hajamini & Falahi (2018); Schwartz & Clements (1999), gross fixed capital formation as in Krkoska (2002); Van der Eng (2009), population growth Ehrlich & Holdren (1971); Ness (2008); Pearce (2013) and money supply are the explanatory variables of the model stated in equations (4). The data mainly obtains from the World Bank Database (World Bank, 2017).…”

Section: Methodsmentioning

confidence: 99%

The Relevance of Wagner’s Hypothesis in Achieving Sustainable Development Agenda in Nigeria

Oseni

Adekunle

2020

Signifikan

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Policy ambiguity in the form of non-directional and non-purposeful use of state resources has made sustainable growth outcomes a mirage in Nigeria. The recent economic crisis prompted the debate on how increased government spending induces sustainable economic growth in Nigeria. This paper examines the validity or otherwise of Wagner’s theory in Nigeria for the realization of the Sustainable Development Goals (SDGs) from 1980 through 2017. By using time-series data on real gross domestic product, total government expenditure, money supply, and domestic investment and adopting the two-step Engle and Granger estimation procedure, result shows that increased government spending significantly predicts variations in real gross domestic product and thus leaned empirical credence to Wagner’s hypothesis as an essential concept for the attainment of Sustainable Development Goals in Nigeria. This paper recommended that the government should exhaust all possible option to increase expenditure in order to realize sustainable growth in Nigeria. JEL Classification: E62, O11 How to Cite:Oseni, I. O., & Adekunle, I. A. (2020). The Relevance of Wagner’s Hypothesis in Achieving Sustainable Development Agenda in Nigeria. Signifikan: Jurnal Ilmu Ekonomi, Vol. 9(1), 123-136. doi: http://dx.doi.org/10.15408/sjie.v9i1.12884

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Economic growth and government size in developed European countries: A panel threshold approach

Cited by 60 publications

References 92 publications

Threshold Effect of Tourism Development on Economic Growth Following a Disaster Shock: Evidence from the Wenchuan Earthquake, P.R. China

Threshold Effect of Tourism Development on Economic Growth Following a Disaster Shock: Evidence from the Wenchuan Earthquake, P.R. China

Construction Sector Role in Gross Fixed Capital Formation: Empirical Data from Russia

The Relevance of Wagner’s Hypothesis in Achieving Sustainable Development Agenda in Nigeria

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