Pub Date : 2023-02-28DOI: 10.1108/aea-04-2022-0121
Danh Vinh Le, Huong Thi Thu Le, Thanh Tien Pham, Lai Van Vo
Purpose The purpose of this paper is to examine the effect of innovation on the performance of small and medium-sized enterprises (SMEs) in Vietnam. Design/methodology/approach The paper uses data from the surveys on SMEs in Vietnam conducted by the Development Economics Research Group at the University of Copenhagen, the United Nations University’s World Institute for Development Economics Research, Central Institute for Economic Management and Institute of Labor Science and Social Affairs, and applies least squared regressions and 2SLS regressions to examine the effect of innovation on the performance of SMEs. Findings The authors find that SMEs with innovation tend to perform better than SMEs without innovation. The authors further show that the positive effect of innovation on firm performance mainly comes from the effect of improvement of existing products, an important type of innovation in SMEs. This result is persistent when the authors use propensity matching score and 2SLS regression with instrumental variable approaches. Overall, the results show the important role of innovation in enhancing the firm performance of SMEs, which sheds light on the literature on the controversial relation between innovation and SMEs performance in the world. Research limitations/implications The major limitation of the paper is the lack of data. Although the database used in the paper is widely used to analyze SMEs in Vietnam, it covers about 2,500 firms in only nine provinces/cities in Vietnam. Practical implications Policymakers should enact relevant policies to support SMEs with innovation activities, thereby increasing firm performance and their competitiveness. For instance, encouragement policies or financial incentives (tax reduction or subsidies) for innovative firms should be implemented and/or fostered. Originality/value To the best of the authors’ knowledge, this is the first paper to examine the effect of different types of innovation on the performance of SMEs in Vietnam.
{"title":"Innovation and SMEs performance: evidence from Vietnam","authors":"Danh Vinh Le, Huong Thi Thu Le, Thanh Tien Pham, Lai Van Vo","doi":"10.1108/aea-04-2022-0121","DOIUrl":"https://doi.org/10.1108/aea-04-2022-0121","url":null,"abstract":"Purpose The purpose of this paper is to examine the effect of innovation on the performance of small and medium-sized enterprises (SMEs) in Vietnam. Design/methodology/approach The paper uses data from the surveys on SMEs in Vietnam conducted by the Development Economics Research Group at the University of Copenhagen, the United Nations University’s World Institute for Development Economics Research, Central Institute for Economic Management and Institute of Labor Science and Social Affairs, and applies least squared regressions and 2SLS regressions to examine the effect of innovation on the performance of SMEs. Findings The authors find that SMEs with innovation tend to perform better than SMEs without innovation. The authors further show that the positive effect of innovation on firm performance mainly comes from the effect of improvement of existing products, an important type of innovation in SMEs. This result is persistent when the authors use propensity matching score and 2SLS regression with instrumental variable approaches. Overall, the results show the important role of innovation in enhancing the firm performance of SMEs, which sheds light on the literature on the controversial relation between innovation and SMEs performance in the world. Research limitations/implications The major limitation of the paper is the lack of data. Although the database used in the paper is widely used to analyze SMEs in Vietnam, it covers about 2,500 firms in only nine provinces/cities in Vietnam. Practical implications Policymakers should enact relevant policies to support SMEs with innovation activities, thereby increasing firm performance and their competitiveness. For instance, encouragement policies or financial incentives (tax reduction or subsidies) for innovative firms should be implemented and/or fostered. Originality/value To the best of the authors’ knowledge, this is the first paper to examine the effect of different types of innovation on the performance of SMEs in Vietnam.","PeriodicalId":36191,"journal":{"name":"Applied Economic Analysis","volume":"70 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2023-02-28","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"135583580","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2022-12-22DOI: 10.1108/aea-11-2021-0297
A. Beyaert, J. García-Solanes, Laura Lopez-Gomez
Purpose This paper aims to apply regression-tree analysis to capture the nonlinear effects of corruption on economic growth. Using data of 103 countries for the period 1996–2017, the authors endogenously detect two distinct areas in corruption quality in which the members share the same model of economic growth. Design/methodology/approach The authors apply regression tree analysis to capture the nonlinearity of the influences. This methodology allows us to split endogenously the whole sample of countries and characterize the different ways through which corruption impacts economic growth in each group of countries. Findings The traditional determinants of economic growth have different impacts on countries depending on their level of corruption, which, in turn, confirms the parameter heterogeneity of the Solow model found in other strands of the literature. Originality/value The authors apply a new approach to a worldwide sample obtaining novel results.
{"title":"Corruption, quality of institutions and growth","authors":"A. Beyaert, J. García-Solanes, Laura Lopez-Gomez","doi":"10.1108/aea-11-2021-0297","DOIUrl":"https://doi.org/10.1108/aea-11-2021-0297","url":null,"abstract":"\u0000Purpose\u0000This paper aims to apply regression-tree analysis to capture the nonlinear effects of corruption on economic growth. Using data of 103 countries for the period 1996–2017, the authors endogenously detect two distinct areas in corruption quality in which the members share the same model of economic growth.\u0000\u0000\u0000Design/methodology/approach\u0000The authors apply regression tree analysis to capture the nonlinearity of the influences. This methodology allows us to split endogenously the whole sample of countries and characterize the different ways through which corruption impacts economic growth in each group of countries.\u0000\u0000\u0000Findings\u0000The traditional determinants of economic growth have different impacts on countries depending on their level of corruption, which, in turn, confirms the parameter heterogeneity of the Solow model found in other strands of the literature.\u0000\u0000\u0000Originality/value\u0000The authors apply a new approach to a worldwide sample obtaining novel results.\u0000","PeriodicalId":36191,"journal":{"name":"Applied Economic Analysis","volume":" ","pages":""},"PeriodicalIF":2.3,"publicationDate":"2022-12-22","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"45321783","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2022-06-16DOI: 10.1108/aea-07-2021-0158
D. Živkov, Jasmina Đurašković
Purpose This paper aims to investigate how oil price uncertainty affects real gross domestic product (GDP) and industrial production in eight Central and Eastern European countries (CEEC). Design/methodology/approach In the research process, the authors use the Bayesian method of inference for the two applied methodologies – Markov switching generalized autoregressive conditional heteroscedasticity (GARCH) model and quantile regression. Findings The results clearly indicate that oil price uncertainty has a low effect on output in moderate market conditions in the selected countries. On the other hand, in the phases of contraction and expansion, which are portrayed by the tail quantiles, the authors find negative and positive Bayesian quantile parameters, which are relatively high in magnitude. This implies that in periods of deep economic crises, an increase in the oil price uncertainty reduces output, amplifying in this way recession pressures in the economy. Contrary, when the economy is in expansion, oil price uncertainty has no influence on the output. The probable reason lies in the fact that the negative effect of oil volatility is not strong enough in the expansion phase to overpower all other positive developments which characterize a growing economy. Also, evidence suggests that increased oil uncertainty has a more negative effect on industrial production than on real GDP, whereas industrial share in GDP plays an important role in how strong some CEECs are impacted by oil uncertainty. Originality/value This paper is the first one that investigates the spillover effect from oil uncertainty to output in CEEC.
{"title":"How does oil price uncertainty affect output in the Central and Eastern European economies? – the Bayesian-based approaches","authors":"D. Živkov, Jasmina Đurašković","doi":"10.1108/aea-07-2021-0158","DOIUrl":"https://doi.org/10.1108/aea-07-2021-0158","url":null,"abstract":"\u0000Purpose\u0000This paper aims to investigate how oil price uncertainty affects real gross domestic product (GDP) and industrial production in eight Central and Eastern European countries (CEEC).\u0000\u0000\u0000Design/methodology/approach\u0000In the research process, the authors use the Bayesian method of inference for the two applied methodologies – Markov switching generalized autoregressive conditional heteroscedasticity (GARCH) model and quantile regression.\u0000\u0000\u0000Findings\u0000The results clearly indicate that oil price uncertainty has a low effect on output in moderate market conditions in the selected countries. On the other hand, in the phases of contraction and expansion, which are portrayed by the tail quantiles, the authors find negative and positive Bayesian quantile parameters, which are relatively high in magnitude. This implies that in periods of deep economic crises, an increase in the oil price uncertainty reduces output, amplifying in this way recession pressures in the economy. Contrary, when the economy is in expansion, oil price uncertainty has no influence on the output. The probable reason lies in the fact that the negative effect of oil volatility is not strong enough in the expansion phase to overpower all other positive developments which characterize a growing economy. Also, evidence suggests that increased oil uncertainty has a more negative effect on industrial production than on real GDP, whereas industrial share in GDP plays an important role in how strong some CEECs are impacted by oil uncertainty.\u0000\u0000\u0000Originality/value\u0000This paper is the first one that investigates the spillover effect from oil uncertainty to output in CEEC.\u0000","PeriodicalId":36191,"journal":{"name":"Applied Economic Analysis","volume":" ","pages":""},"PeriodicalIF":2.3,"publicationDate":"2022-06-16","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"43934827","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2022-05-05DOI: 10.1108/aea-04-2021-0083
Salvador del Saz-Salazar, S. Gil‐Pareja, María José García-Grande
Purpose This study, using a contingent valuation approach, aims to shed light on the economic evaluation of online learning during the first wave of the pandemic. Design/methodology/approach A sample of 959 higher education students was asked about their willingness-to-accept (WTA) a monetary compensation for the loss of well-being resulting from the unexpected and mandatory transition to the online space. In explaining WTA determinants, the authors test the appropriateness of the double-hurdle model against the alternative of a Tobit model and find that the factors affecting the participation decision are not the same as those that affect the quantity decision. Findings Results show that a vast majority of the respondents think that the abrupt transition to online learning is detrimental to them, while those willing to accept a monetary compensation account for 77% of the sample, being the mean WTA between €448 and €595. As expected, WTA decreases with income and age, and it increases if some member of the family unit is unemployed. By aggregating the mean WTA by the population affected, total loss of well-being is obtained. Originality/value To the best of the authors’ knowledge, to date, this method has not been used to value online learning in a WTA framework, much less in the particular context of the pandemic. Thus, based on the understanding that the economic evaluation of online learning could be very useful in providing guidance for decision-making, this paper contributes to the literature on the economic evaluation of higher education.
{"title":"On the economic evaluation of online learning in higher education during the COVID-19 pandemic: a willingness-to-accept approach","authors":"Salvador del Saz-Salazar, S. Gil‐Pareja, María José García-Grande","doi":"10.1108/aea-04-2021-0083","DOIUrl":"https://doi.org/10.1108/aea-04-2021-0083","url":null,"abstract":"\u0000Purpose\u0000This study, using a contingent valuation approach, aims to shed light on the economic evaluation of online learning during the first wave of the pandemic.\u0000\u0000\u0000Design/methodology/approach\u0000A sample of 959 higher education students was asked about their willingness-to-accept (WTA) a monetary compensation for the loss of well-being resulting from the unexpected and mandatory transition to the online space. In explaining WTA determinants, the authors test the appropriateness of the double-hurdle model against the alternative of a Tobit model and find that the factors affecting the participation decision are not the same as those that affect the quantity decision.\u0000\u0000\u0000Findings\u0000Results show that a vast majority of the respondents think that the abrupt transition to online learning is detrimental to them, while those willing to accept a monetary compensation account for 77% of the sample, being the mean WTA between €448 and €595. As expected, WTA decreases with income and age, and it increases if some member of the family unit is unemployed. By aggregating the mean WTA by the population affected, total loss of well-being is obtained.\u0000\u0000\u0000Originality/value\u0000To the best of the authors’ knowledge, to date, this method has not been used to value online learning in a WTA framework, much less in the particular context of the pandemic. Thus, based on the understanding that the economic evaluation of online learning could be very useful in providing guidance for decision-making, this paper contributes to the literature on the economic evaluation of higher education.\u0000","PeriodicalId":36191,"journal":{"name":"Applied Economic Analysis","volume":"1 1","pages":""},"PeriodicalIF":2.3,"publicationDate":"2022-05-05","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"43907852","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2022-03-01DOI: 10.1108/aea-01-2021-0003
V. Esteve, Maria A. Prats
Purpose This paper aims to analyze the dynamics of the Spanish public debt–gross domestic product ratio during the period 1850–2020. Design/methodology/approach This study uses a recent procedure to test for recurrent explosive behavior (Phillips et al., 2011; Phillips et al., 2015a, 2015b) to identify episodes of explosive public debt dynamics and also the episodes of fiscal adjustments over this long period. Findings The identified episodes of explosive behavior of public debt coincided with fiscal stress events, whereas fiscal adjustments and changes in economic policies stabilized public finances after periods of explosive dynamics of public debt. Originality/value The longer than usual span of the data should allow the authors to obtain some more robust results than in most of previous analyses of long-run sustainability.
目的本文旨在分析1850年至2020年期间西班牙公共债务与国内生产总值比率的动态。设计/方法/方法本研究使用最近的程序来测试反复的爆炸行为（Phillips et al.，2011；Phillips et al，2015a，2015b），以确定爆炸性公共债务动态的发作以及财政调整的发作这段漫长的时期。发现已确定的公共债务爆炸性行为与财政压力事件相吻合，而财政调整和经济政策的变化在公共债务爆炸后稳定了公共财政。原创性/价值比通常更长的数据跨度应该使作者能够获得比以往大多数长期可持续性分析更稳健的结果。
{"title":"Testing for multiple bubbles: historical episodes on the sustainability of public debt in Spain, 1850–2020","authors":"V. Esteve, Maria A. Prats","doi":"10.1108/aea-01-2021-0003","DOIUrl":"https://doi.org/10.1108/aea-01-2021-0003","url":null,"abstract":"Purpose This paper aims to analyze the dynamics of the Spanish public debt–gross domestic product ratio during the period 1850–2020. Design/methodology/approach This study uses a recent procedure to test for recurrent explosive behavior (Phillips et al., 2011; Phillips et al., 2015a, 2015b) to identify episodes of explosive public debt dynamics and also the episodes of fiscal adjustments over this long period. Findings The identified episodes of explosive behavior of public debt coincided with fiscal stress events, whereas fiscal adjustments and changes in economic policies stabilized public finances after periods of explosive dynamics of public debt. Originality/value The longer than usual span of the data should allow the authors to obtain some more robust results than in most of previous analyses of long-run sustainability.","PeriodicalId":36191,"journal":{"name":"Applied Economic Analysis","volume":" ","pages":""},"PeriodicalIF":2.3,"publicationDate":"2022-03-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"45380755","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2022-02-08DOI: 10.1108/aea-08-2021-0199
Antonio Caparrós Ruiz
Purpose This study aims to analyse the inequalities in access to teleworking in Spain. More specifically, the study examines what factors determine remote working in a pre-pandemic period and during the state of alarm (March 2020). Moreover, the study examines whether telecommuting is related to the likelihood of suffering emotional disorders during lockdowns. Design/methodology/approach The methodological approach followed to analyse access to teleworking mainly consists of the estimation of ordered response models. Two datasets are used: the first is the Survey on Equipment and Use of Information and Communication Technologies (ICTs) in Households, conducted by the Spanish National Statistics Institute (INE) in the pre-pandemic period (2018). The second is the Social Survey 2020. Habits and Living Conditions of the Andalusian Population during the State of Alarm, conducted by the Institute of Statistics and Cartography of Andalusia (IECA) once the state of alarm was declared in Spain. Findings The results obtained indicate that ICT training is a key element in helping to explain the likelihood of working from home. However, some groups of workers might experience difficulties in their transition to teleworking. This could increase labour market segmentation and hinder the transition to the knowledge economy. Moreover, the findings detect that employees working both on the company premises and from home are more likely to suffer emotional disorders. Originality/value The paper sheds new empirical evidence on teleworking in Spain and Andalusia, including some novel methodological aspects to estimate the regressors’ effects on the probability of working from home.
{"title":"Factors determining teleworking before and during COVID-19: some evidence from Spain and Andalusia","authors":"Antonio Caparrós Ruiz","doi":"10.1108/aea-08-2021-0199","DOIUrl":"https://doi.org/10.1108/aea-08-2021-0199","url":null,"abstract":"\u0000Purpose\u0000This study aims to analyse the inequalities in access to teleworking in Spain. More specifically, the study examines what factors determine remote working in a pre-pandemic period and during the state of alarm (March 2020). Moreover, the study examines whether telecommuting is related to the likelihood of suffering emotional disorders during lockdowns.\u0000\u0000\u0000Design/methodology/approach\u0000The methodological approach followed to analyse access to teleworking mainly consists of the estimation of ordered response models. Two datasets are used: the first is the Survey on Equipment and Use of Information and Communication Technologies (ICTs) in Households, conducted by the Spanish National Statistics Institute (INE) in the pre-pandemic period (2018). The second is the Social Survey 2020. Habits and Living Conditions of the Andalusian Population during the State of Alarm, conducted by the Institute of Statistics and Cartography of Andalusia (IECA) once the state of alarm was declared in Spain.\u0000\u0000\u0000Findings\u0000The results obtained indicate that ICT training is a key element in helping to explain the likelihood of working from home. However, some groups of workers might experience difficulties in their transition to teleworking. This could increase labour market segmentation and hinder the transition to the knowledge economy. Moreover, the findings detect that employees working both on the company premises and from home are more likely to suffer emotional disorders.\u0000\u0000\u0000Originality/value\u0000The paper sheds new empirical evidence on teleworking in Spain and Andalusia, including some novel methodological aspects to estimate the regressors’ effects on the probability of working from home.\u0000","PeriodicalId":36191,"journal":{"name":"Applied Economic Analysis","volume":" ","pages":""},"PeriodicalIF":2.3,"publicationDate":"2022-02-08","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"49134503","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2022-01-25DOI: 10.1108/aea-05-2021-0112
P. Beneito, Óscar Vicente-Chirivella
Purpose The autonomous governments of two regions in Spain established mobile bans in schools as of the year 2015. Exploiting the across-region variation introduced by such a quasi-natural experiment, this study aims to perform a comparative-case analysis to investigate the impact of this non-spending-based policy on regional Programme for International Student Assessment (PISA) scores in maths and sciences and bullying incidence. Design/methodology/approach The authors apply the synthetic control method and diff-in-diff estimation to compare the treated regions with the rest of regions in Spain before and after the intervention. Findings The results show noticeable reductions of bullying incidence among teenagers in the two treated regions. The authors also find positive and significant effects of this policy on the PISA scores of the Galicia region that are equivalent to 0.6–0.8 years of learning in maths and around 0.72 to near one year of learning in sciences. Originality/value To the best of the author’s knowledge, this is the first empirical study analysing the impact of mobile phone bans in schools on bullying cases, exploiting variation across regions (or other units), years and age intervals. Besides, the scarce formal evidence that exists on the consequences of the mobile phones use in students’ academic achievement comes from a micro perspective, while the paper serves as one more piece of evidence from a macro perspective.
{"title":"Banning mobile phones in schools: evidence from regional-level policies in Spain","authors":"P. Beneito, Óscar Vicente-Chirivella","doi":"10.1108/aea-05-2021-0112","DOIUrl":"https://doi.org/10.1108/aea-05-2021-0112","url":null,"abstract":"\u0000Purpose\u0000The autonomous governments of two regions in Spain established mobile bans in schools as of the year 2015. Exploiting the across-region variation introduced by such a quasi-natural experiment, this study aims to perform a comparative-case analysis to investigate the impact of this non-spending-based policy on regional Programme for International Student Assessment (PISA) scores in maths and sciences and bullying incidence.\u0000\u0000\u0000Design/methodology/approach\u0000The authors apply the synthetic control method and diff-in-diff estimation to compare the treated regions with the rest of regions in Spain before and after the intervention.\u0000\u0000\u0000Findings\u0000The results show noticeable reductions of bullying incidence among teenagers in the two treated regions. The authors also find positive and significant effects of this policy on the PISA scores of the Galicia region that are equivalent to 0.6–0.8 years of learning in maths and around 0.72 to near one year of learning in sciences.\u0000\u0000\u0000Originality/value\u0000To the best of the author’s knowledge, this is the first empirical study analysing the impact of mobile phone bans in schools on bullying cases, exploiting variation across regions (or other units), years and age intervals. Besides, the scarce formal evidence that exists on the consequences of the mobile phones use in students’ academic achievement comes from a micro perspective, while the paper serves as one more piece of evidence from a macro perspective.\u0000","PeriodicalId":36191,"journal":{"name":"Applied Economic Analysis","volume":" ","pages":""},"PeriodicalIF":2.3,"publicationDate":"2022-01-25","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"45097693","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2021-12-03DOI: 10.1108/aea-06-2021-0118
Victoria Osuna, J. García Pérez
Purpose This paper aims to study the type of short-time work (STW) schemes implemented in Spain to preserve jobs and workers’ incomes during the COVID-19 crisis and the corresponding labour market outcomes. Design/methodology/approach A dynamic macroeconomic model of job creation and destruction of the search and matching type in a dual labour market. Findings The model shows that the availability of STW schemes does not necessarily prevent a large increase in unemployment and job destruction. The quantitative effects depend on the degree of subsidization of payroll taxes and on the design of the policy. A scenario with a moderate degree of subsidization and where the subsidy is independent of the reduction in hours worked is the least harmful for both welfare and fiscal deficit. The cost of such a strategy is a higher unemployment rate. Concerning heterogeneous effects, the unemployed are the ones who experience the strongest distributional changes. Originality/value The effectiveness of STW schemes in dual labour markets using a search and matching model in the context of the COVID-19 crisis has not been analysed elsewhere. The literature has emphasized the importance of dynamics, labour market institutions and workers’ heterogeneity to understand workforce adjustment decisions in the face of temporary shocks to de- mand especially when firms’ human capital is relevant. These elements are present in the model. In addition, this paper computes welfare and distributional effects and the cost of these policies.
{"title":"Temporary layoffs, short-time work and COVID-19: the case of a dual labour market","authors":"Victoria Osuna, J. García Pérez","doi":"10.1108/aea-06-2021-0118","DOIUrl":"https://doi.org/10.1108/aea-06-2021-0118","url":null,"abstract":"\u0000Purpose\u0000This paper aims to study the type of short-time work (STW) schemes implemented in Spain to preserve jobs and workers’ incomes during the COVID-19 crisis and the corresponding labour market outcomes.\u0000\u0000\u0000Design/methodology/approach\u0000A dynamic macroeconomic model of job creation and destruction of the search and matching type in a dual labour market.\u0000\u0000\u0000Findings\u0000The model shows that the availability of STW schemes does not necessarily prevent a large increase in unemployment and job destruction. The quantitative effects depend on the degree of subsidization of payroll taxes and on the design of the policy. A scenario with a moderate degree of subsidization and where the subsidy is independent of the reduction in hours worked is the least harmful for both welfare and fiscal deficit. The cost of such a strategy is a higher unemployment rate. Concerning heterogeneous effects, the unemployed are the ones who experience the strongest distributional changes.\u0000\u0000\u0000Originality/value\u0000The effectiveness of STW schemes in dual labour markets using a search and matching model in the context of the COVID-19 crisis has not been analysed elsewhere. The literature has emphasized the importance of dynamics, labour market institutions and workers’ heterogeneity to understand workforce adjustment decisions in the face of temporary shocks to de- mand especially when firms’ human capital is relevant. These elements are present in the model. In addition, this paper computes welfare and distributional effects and the cost of these policies.\u0000","PeriodicalId":36191,"journal":{"name":"Applied Economic Analysis","volume":" ","pages":""},"PeriodicalIF":2.3,"publicationDate":"2021-12-03","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"48806125","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2021-10-24DOI: 10.1108/aea-07-2021-0157
O. Bajo‐Rubio
Purpose Foreign direct investment (FDI) has played a major role in the deep process of transformation experienced by the Spanish economy since the first 1960s, which even intensified, following the integration with the now European Union in 1986. This paper aims to analyse the long-run effects of FDI in Spain by estimating a production function including the foreign capital stock over the period 1964–2013. Design/methodology/approach The author estimates a production function including the foreign capital stock over the period 1964–2013, from which the contributions of the different explanatory variables on the accumulated growth of gross domestic product (GDP) are computed. Next, the author tested for the possible presence of structural change in the previously estimated equation, by means of the tests of Bai and Perron, re-estimating the production function for the different subperiods delimited by the structural breaks found. Finally, the analysis is completed by performing Granger-causality tests on the variables GDP and foreign capital stock in a multivariate setting. Findings The author finds a significant contribution of foreign capital on the accumulated growth of GDP over the period of analysis, which seems however to have been greater during the first years of the period analysed. Foreign capital can play a positive role in the economic growth of an economy, provided that FDI inflows are stable and permanent enough, but this effect on growth seems to be more important in the first stages of a growth process. Originality/value The author presents a comprehensive analysis of the relationship between FDI and growth for a particular country, which seems to be a more promising empirical approach rather than the approach based on panel regressions, where sometimes some dissimilar experiences are added together. The Spanish economy can provide a relevant case study, given the substantial process of growth it enjoyed starting from the early 1960s, characterized by the arrival of vast inflows of foreign capital.
{"title":"The role of foreign direct investment in growth: Spain, 1964–2013","authors":"O. Bajo‐Rubio","doi":"10.1108/aea-07-2021-0157","DOIUrl":"https://doi.org/10.1108/aea-07-2021-0157","url":null,"abstract":"\u0000Purpose\u0000Foreign direct investment (FDI) has played a major role in the deep process of transformation experienced by the Spanish economy since the first 1960s, which even intensified, following the integration with the now European Union in 1986. This paper aims to analyse the long-run effects of FDI in Spain by estimating a production function including the foreign capital stock over the period 1964–2013.\u0000\u0000\u0000Design/methodology/approach\u0000The author estimates a production function including the foreign capital stock over the period 1964–2013, from which the contributions of the different explanatory variables on the accumulated growth of gross domestic product (GDP) are computed. Next, the author tested for the possible presence of structural change in the previously estimated equation, by means of the tests of Bai and Perron, re-estimating the production function for the different subperiods delimited by the structural breaks found. Finally, the analysis is completed by performing Granger-causality tests on the variables GDP and foreign capital stock in a multivariate setting.\u0000\u0000\u0000Findings\u0000The author finds a significant contribution of foreign capital on the accumulated growth of GDP over the period of analysis, which seems however to have been greater during the first years of the period analysed. Foreign capital can play a positive role in the economic growth of an economy, provided that FDI inflows are stable and permanent enough, but this effect on growth seems to be more important in the first stages of a growth process.\u0000\u0000\u0000Originality/value\u0000The author presents a comprehensive analysis of the relationship between FDI and growth for a particular country, which seems to be a more promising empirical approach rather than the approach based on panel regressions, where sometimes some dissimilar experiences are added together. The Spanish economy can provide a relevant case study, given the substantial process of growth it enjoyed starting from the early 1960s, characterized by the arrival of vast inflows of foreign capital.\u0000","PeriodicalId":36191,"journal":{"name":"Applied Economic Analysis","volume":" ","pages":""},"PeriodicalIF":2.3,"publicationDate":"2021-10-24","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"44527260","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2021-10-11DOI: 10.1108/aea-10-2020-0146
Ş. Nazlıoğlu, Mehmet Altuntaş, Emre Kilic, Ilhan Kucukkkaplan
Purpose This paper aims to test purchasing power parity (PPP) hypothesis for Greece, Italy, Ireland, Portugal and Spain, which are known as the GIIPS countries. Design/methodology/approach The authors conduct a comprehensive analysis by using unit root approaches without and with structural breaks and non-linearity. Findings The PPP is valid for the GIIPS countries. Considering structural breaks in non-linear framework plays a crucial role. Originality/value There is no empirical study testing PPP hypothesis by focusing on the GIIPS countries. This study further takes into account for structural breaks and non-linearity in the real exchange rates of these countries.
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