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21 – 30 of 191Sana El Harbi, Gilles Grolleau and Insaf Bekir
Purpose – The purpose of this chapter is to investigate empirically whether entrepreneurship causes growth or whether growth creates a prosper environment for…
Abstract
Purpose – The purpose of this chapter is to investigate empirically whether entrepreneurship causes growth or whether growth creates a prosper environment for entrepreneurship.
Design/methodology – We perform a co-integration analysis using an error correction model on data from 34 countries spanning 13 years to assess the causality issue between growth (proxied by GDP per capita) and entrepreneurship (proxied by self-employment). Our analysis also includes other variables deemed to influence growth.
Findings – The results from an error correction model show that self-employment Granger causes GDP per capita while the opposite direction is not statistically accepted. Moreover, these results suggest that increases in self-employment increase GDP per capita over the short-term but leads to a GDP per capita decrease at a long-term horizon.
Research limitations and implications – We use a linear model to estimate the relationship between self-employment and Growth. Consequently, a more complex model allowing for nonlinearities and additional variables might be more accurate. The empirical investigation is limited to self-employment, which is one facet of entrepreneurship, hence it will be interesting to introduce other measures of entrepreneurship. A direct implication of our study is that rather to be a sustainable economic driver, self-employment seems to resolve only a short-term problem.
Value – The chapter contributes by analyzing the relationship between self-employment and growth by using a co-integration analysis. Consequently it offers a more rigorous appreciation of the direction of causality as well as the long- vs. short-term relationships.
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– The purpose of this paper is to examine asymmetric co-integration effects between nutrition and economic growth for annual South African data from the period 1961-2013.
Abstract
Purpose
The purpose of this paper is to examine asymmetric co-integration effects between nutrition and economic growth for annual South African data from the period 1961-2013.
Design/methodology/approach
The authors deviate from the conventional assumption of linear co-integration and pragmatically incorporate asymmetric effects in the framework through a fusion of the momentum threshold autoregressive and threshold error correction (MTAR-TEC) model approaches, which essentially combines the adjustment asymmetry model of Enders and Silkos (2001); with causality analysis as introduced by Granger (1969); all encompassed by/within the threshold autoregressive (TAR) framework, a la Hansen (2000).
Findings
The findings obtained from the study uncover a number of interesting phenomena for the South Africa economy. First, in coherence with previous studies conducted for developing economies, the authors establish a positive relationship between nutrition and economic growth with an estimated income elasticity of nutritional intake of 0.15. Second, the authors find bi-direction causality between nutrition and economic growth with a stronger causal effect running from nutrition to economic growth. Lastly, the authors find that in the face of equilibrium shocks to the variables, policymakers are slow to responding to deviations of the variables from their co-integrated long run steady state equilibrium.
Originality/value
In the study, the authors make a novel contribution to the literature by exploring asymmetric modelling in the correlation between nutrition intake and economic growth for the exclusive case of South Africa.
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Armando Urdaneta Montiel, Emmanuel Vitorio Borgucci Garcia and Segundo Camino-Mogro
This paper aims to determine causal relationships between the level of productive credit, real deposits and money demand – all of them in real terms – and Gross National Product…
Abstract
Purpose
This paper aims to determine causal relationships between the level of productive credit, real deposits and money demand – all of them in real terms – and Gross National Product between 2006 and 2020.
Design/methodology/approach
The vector autoregressive technique (VAR) was used, where data from real macroeconomic aggregates published by the Central Bank of Ecuador (BCE) are correlated, such as productive credit, gross domestic product (GDP) per capita, deposits and money demand.
Findings
The results indicate that there is no causal relationship, in the Granger sense, between GDP and financial activity, but there is between the growth rate of real money demand per capita and the growth rate of total real deposits per capita.
Originality/value
The study shows that bank credit mainly finances the operations of current assets and/or liabilities. In addition, economic agents use the banking system mainly to carry out transactional and precautionary activities.
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The purpose of this paper is to examine the long‐run relationship between the Indian capital markets and key macroeconomic variables such as interest rates, inflation rate…
Abstract
Purpose
The purpose of this paper is to examine the long‐run relationship between the Indian capital markets and key macroeconomic variables such as interest rates, inflation rate, exchange rates and gross domestic savings (GDS) of Indian economy.
Design/methodology/approach
Quarterly time series data spanning the period from January 1995 to December 2008 has been used. The unit root test, the co‐integration test and error correction mechanism (ECM) have been applied to derive the long run and short‐term statistical dynamics.
Findings
The findings of the study establish that there is co‐integration between macroeconomic variables and Indian stock indices which is indicative of a long‐run relationship. The ECM shows that the rate of inflation has a significant impact on both the BSE Sensex and the S&P CNX Nifty. Interest rates on the other hand, have a significant impact on S&P CNX Nifty only. However, in case of foreign exchange rate, significant impact is seen only on BSE Sensex. The changing GDS is observed as insignificantly associated with both the BSE Sensex and the S&P CNX Nifty. The paper, on the whole, conclusively establishes that the capital markets indices are dependent on macroeconomic variables even though the same may not be statistically significant in all the cases.
Originality/value
This study emphasises on the impact of macroeconomic variables on the stock market performance of a developing economy, whose performance is measured by these variables.
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The relationship between Information and Communication Technology (ICT) and productivity has been widely discussed in the past two decades, but little understood. Since the early…
Abstract
The relationship between Information and Communication Technology (ICT) and productivity has been widely discussed in the past two decades, but little understood. Since the early 1970s productivity growth in almost all of the world economies has slowed, while expenditure on ICT has risen. This raises the so‐called “productivity paradox” with some economists concluding that there is no relationship between spending on ICT and productivity. The study examines this relationship with time series tools in an attempt to identify whether there is a causal relationship in either direction, or whether there is a third factor affecting both ICT growth and productivity growth. Using the Granger causality procedure applied to Portuguese data from the period 1980‐2000, the paper attempts to understand better the paradox in order to recommend to managers how they might make better‐informed and more effective decisions about ICT investments.
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Abstract
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Sociologists are discussing whether or not economic growth enhances subjective well‐being. To complement their research from a housing perspective, the purpose of this paper is to…
Abstract
Purpose
Sociologists are discussing whether or not economic growth enhances subjective well‐being. To complement their research from a housing perspective, the purpose of this paper is to investigate whether aggregate income enhances dwelling satisfaction over time. While cross‐sectional studies have only examined the direct influence of income on dwelling satisfaction, this paper suggests that there are additional influences mediated by other social indicators.
Design/methodology/approach
Based on data from Germany, correlation and regression analyses examine the impacts of aggregate income and other social indicators on dwelling satisfaction. Path analysis is used to test for the existence of mediated relationships.
Findings
The paper finds that aggregate income positively influences dwelling satisfaction. Environmental satisfaction, customer satisfaction and satisfaction with family relations also positively impact dwelling satisfaction and mediate influences of aggregate income. The mediated effects are stronger than the direct effect of aggregate income on dwelling satisfaction.
Research limitations/implications
The longitudinal availability of aggregate customer satisfaction data is still limited. Future research on dwelling satisfaction is encouraged to account for customer satisfaction and to reexamine the analyses of this study with future data.
Practical implications
Stimulating economic growth is a good strategy to improve dwelling satisfaction. Policies improving the environment, family support and shopping opportunities are also effective.
Originality/value
This paper is original in that it examines the impacts of economic growth and customer satisfaction on dwelling satisfaction. While the extant literature has only analysed direct effects of income on dwelling satisfaction, this study also accounts for mediated effects.
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Some recent research has reported results more favourable tolong‐run purchasing‐power parity (PPP) for exchange rates within theEuropean Monetary System (EMS) than for those…
Abstract
Some recent research has reported results more favourable to long‐run purchasing‐power parity (PPP) for exchange rates within the European Monetary System (EMS) than for those outside it. This is inconsistent with the predictions of theories that regard the EMS as a means of acquiring anti‐inflation credibility for the governments of relatively high‐inflation countries. Results of tests on a wide range of intra‐EMS exchange rates suggest a tendency to under‐adjust for cumulative price differentials, and that the DM‐FF rate is atypical in its adherence to long‐run PPP.
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The purpose of this paper is to examine the extent of financial integration occurring in East Asia. Increasing economic integration in East Asia over the last two decades has been…
Abstract
The purpose of this paper is to examine the extent of financial integration occurring in East Asia. Increasing economic integration in East Asia over the last two decades has been evidenced by consistent growth in intra‐regional trade and investment. Greater economic integration in the region, accompanied by financial deregulation and liberalization, has contributed to greater financial integration. This study confirms increasing degree of financial market integration in East Asia by comparing movements of monthly money market rates before and after the Asian financial crisis. Convergence of interest rates across the countries in East Asia is examined by analyzing deviations, correlation coefficients and multivariate co‐integration tests of interest rates.
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Nestor Arguea and Richard K. Harper
In this paper we examine the relationship over time of the No. 11 (World) and the No. 14 (US) sugar futures contracts, traded on the New York Coffee, Sugar and Cocoa Exchange…
Abstract
In this paper we examine the relationship over time of the No. 11 (World) and the No. 14 (US) sugar futures contracts, traded on the New York Coffee, Sugar and Cocoa Exchange. Using daily price data for a 14 year period, we examine statistical linkages between domestic and world futures contracts. Our results suggest that the US and world markets exhibit strong linkages during periods when US imports are under tariff (1977–1982), but the US market is effectively insulated from world price changes by the operation of the quota program (1982–1990). The pattern of causality runs from the world to the US market during the tariff period. The US market does not appear to influence world market prices during either the tariff or the quota period.