After initiating the economic liberalization policies in 1991, India adopted a ‘Look East Policy’ (LEP) with the dual objective of securing economic growth and maintaining maritime security. Cooperation with East Asia received further boost, when the ‘Act East Policy’ (AEP) came into effect during the maiden visit of Prime Minister Mr. Narendra Modi at the ASEAN-India Summit in 2014, which emphasizes on practicing more action-oriented policy towards ASEAN and the wider East Asia. As a result of the policy shift and through the other initiatives like Make-in-India, India’s trade and investment linkages with East Asia is on the rise. In 2015, the Prime Minister visited five East Asian countries at various occasions. There have been other high level diplomatic visits to the East, followed by the appropriate diplomatic channels. Therefore, AEP has brought a great sense of speed and priority in engaging with the East and Southeast Asian countries. On maritime front, China’s nine-dash line doctrine generated strategic concerns both in East and Southeast Asia and India has emerged as a strategic player in the region through joint naval exercises and capacity buildings with partner countries. Given the recent reservations expressed by Beijing against the ruling by the international tribunal in The Hague, India’s maritime security initiatives in East Asia is likely stay relevant in coming days. The current paper examines the future for India-East Asia relations in days to come, especially in the current geo-political set-up.
{"title":"Economic and Political Cooperation between India and East Asia: The Emerging Perspective","authors":"A. Chakraborty, D. Chakraborty","doi":"10.1453/JEPE.V4I2.1273","DOIUrl":"https://doi.org/10.1453/JEPE.V4I2.1273","url":null,"abstract":"After initiating the economic liberalization policies in 1991, India adopted a ‘Look East Policy’ (LEP) with the dual objective of securing economic growth and maintaining maritime security. Cooperation with East Asia received further boost, when the ‘Act East Policy’ (AEP) came into effect during the maiden visit of Prime Minister Mr. Narendra Modi at the ASEAN-India Summit in 2014, which emphasizes on practicing more action-oriented policy towards ASEAN and the wider East Asia. As a result of the policy shift and through the other initiatives like Make-in-India, India’s trade and investment linkages with East Asia is on the rise. In 2015, the Prime Minister visited five East Asian countries at various occasions. There have been other high level diplomatic visits to the East, followed by the appropriate diplomatic channels. Therefore, AEP has brought a great sense of speed and priority in engaging with the East and Southeast Asian countries. On maritime front, China’s nine-dash line doctrine generated strategic concerns both in East and Southeast Asia and India has emerged as a strategic player in the region through joint naval exercises and capacity buildings with partner countries. Given the recent reservations expressed by Beijing against the ruling by the international tribunal in The Hague, India’s maritime security initiatives in East Asia is likely stay relevant in coming days. The current paper examines the future for India-East Asia relations in days to come, especially in the current geo-political set-up.","PeriodicalId":432468,"journal":{"name":"Journal of Economics and Political Economy","volume":"3 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2017-04-20","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"114623786","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Abstract. On July 5, 2015, Greece held a referendum for deciding on the blackmailing proposal submitted by the Institutions of the Eurogroup on 25th of June 2015. On the threshold of the credit suffocation, the Greek people did not relent and they expressed through their vote (a percentage of 61, 31% and 3.558.450 votes) their objection; one more “NO” in their history, similar to this of 28th October of 1940. However, the Greek leaders flinched to express this “NO” using tangible policies even if the short term consequences would be painful. Instead, the foreign partners, allies and friends to Greece “which belongs to the West”, still follow a strict austerity policy which has resulted in poverty of the majority of the Greek people, and in the stagflation. Igglesis Nikos, in his book “The Revolution of GREXIT: The Plan”, makes an attempt to present in a detailed way what the Greek people decided…an alternative and sustainable solution. Keywords. Grexit. JEL. A10.
{"title":"Igglesis Nikos, The Revolution of Grexit: The Plan","authors":"Dionysios Solomos, D. Koumparoulis","doi":"10.1453/JEPE.V4I1.1189","DOIUrl":"https://doi.org/10.1453/JEPE.V4I1.1189","url":null,"abstract":"Abstract. On July 5, 2015, Greece held a referendum for deciding on the blackmailing proposal submitted by the Institutions of the Eurogroup on 25th of June 2015. On the threshold of the credit suffocation, the Greek people did not relent and they expressed through their vote (a percentage of 61, 31% and 3.558.450 votes) their objection; one more “NO” in their history, similar to this of 28th October of 1940. However, the Greek leaders flinched to express this “NO” using tangible policies even if the short term consequences would be painful. Instead, the foreign partners, allies and friends to Greece “which belongs to the West”, still follow a strict austerity policy which has resulted in poverty of the majority of the Greek people, and in the stagflation. Igglesis Nikos, in his book “The Revolution of GREXIT: The Plan”, makes an attempt to present in a detailed way what the Greek people decided…an alternative and sustainable solution. Keywords. Grexit. JEL. A10.","PeriodicalId":432468,"journal":{"name":"Journal of Economics and Political Economy","volume":"132 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2017-04-08","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"133116067","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Government of India has initiated the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) or N REGS in 2006 where the basic objective is to provide 100 full man-days of employment to each willing rural household. The adjoining act (NREG Act of 2005) that guarantees employment of every rural household for 100 days has different provisions to incentivize participation of women in the programme. The programme indeed has both direct and indirect aspects towards favoring the participation of women in order to fulfill a larger objective of women empowerment. Thus it becomes imperative to focus on the extent to which the programme is inclusive of women. Official data suggest that 47% of all NREGS workers are women. However, in this regard, there is substantial variation not only across states but also across different regions within a state. The present paper based on a primary survey made in Birbhum district of West Bengal, attempts to investigate whether expansion of NREGS has been able to help the female job-card holders to get employment through NREGS where we have considered ratio of female man days to total man days of a household as the outcome variable. It is observed that the heterogeneity in the value of the stated outcome variable is significantly caused by nature of works the female job card holders have to carry out under NREGS and family parameters faced by them which somehow emanate from socio-cultural factor(s) in general and binding in particular. Apart from this, although there is inevitability of the influence of total number of NREGS man- days received in the entire reference period by the household to which the female member(s) belongs, yet, there seems no one to one correspondence between the outcome variable and the same.
{"title":"Employment Generation among Women in NREGS: A Synthesis on the basis of Micro Level Field Investigation","authors":"A. Kundu, Sanjib Talukdar","doi":"10.1453/JEPE.V4I1.1182","DOIUrl":"https://doi.org/10.1453/JEPE.V4I1.1182","url":null,"abstract":"Government of India has initiated the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) or N REGS in 2006 where the basic objective is to provide 100 full man-days of employment to each willing rural household. The adjoining act (NREG Act of 2005) that guarantees employment of every rural household for 100 days has different provisions to incentivize participation of women in the programme. The programme indeed has both direct and indirect aspects towards favoring the participation of women in order to fulfill a larger objective of women empowerment. Thus it becomes imperative to focus on the extent to which the programme is inclusive of women. Official data suggest that 47% of all NREGS workers are women. However, in this regard, there is substantial variation not only across states but also across different regions within a state. The present paper based on a primary survey made in Birbhum district of West Bengal, attempts to investigate whether expansion of NREGS has been able to help the female job-card holders to get employment through NREGS where we have considered ratio of female man days to total man days of a household as the outcome variable. It is observed that the heterogeneity in the value of the stated outcome variable is significantly caused by nature of works the female job card holders have to carry out under NREGS and family parameters faced by them which somehow emanate from socio-cultural factor(s) in general and binding in particular. Apart from this, although there is inevitability of the influence of total number of NREGS man- days received in the entire reference period by the household to which the female member(s) belongs, yet, there seems no one to one correspondence between the outcome variable and the same.","PeriodicalId":432468,"journal":{"name":"Journal of Economics and Political Economy","volume":"21 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2017-04-07","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"131193481","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Abstract. The idea that government should act as employer of last resort (ELR) is an old one. That idea is often referred to nowadays as “job guarantee”. Many ELR schemes to date have been confined to the public sector. There is no good reason for that limitation: i.e. the private sector should use ELR labour as well. A second common characteristic of ELR schemes has been that (like the WPA in the US in the 1930s) they involve specially set up projects or schemes as distinct from subsidising temporary employees into work with EXISTING employers. The “existing employer” option is preferable. Once those two common defects in ELR are removed, the result is a system where the unemployed are subsidised into temporary and relatively unproductive jobs with existing employers till better jobs appear. And that in turn is what the unemployed tend to do in a totally free market: a scenario where there are no minimum wage laws and unemployment benefit, and where the unemployed tend to get temporary low paid jobs in both public and private sectors pending the appearance of better jobs. In contrast to a free market, under ELR, take home pay is maintained at socially acceptable levels. Assuming that free markets maximise GDP, it follows that the sort of ELR system advocated here will also maximize GDP. That free market style ELR system actually resembles the ELR system that the UK has at the time of writing, namely the Work Programme. The latter “free market” / Work Programme system is not free of faults, but as long as ELR employees do not displace regular employees to too great an extent, that “free market” ELR system is better than traditional ELR. Keywords. Employer of last resort, Job guarantee, Work project admistration. JEL. J60, J63, J64, J68.
{"title":"An Employer of Last Resort Scheme which Resembles a Free Labour Market","authors":"R. Musgrave","doi":"10.1453/JEPE.V4I1.1237","DOIUrl":"https://doi.org/10.1453/JEPE.V4I1.1237","url":null,"abstract":"Abstract. The idea that government should act as employer of last resort (ELR) is an old one. That idea is often referred to nowadays as “job guarantee”. Many ELR schemes to date have been confined to the public sector. There is no good reason for that limitation: i.e. the private sector should use ELR labour as well. A second common characteristic of ELR schemes has been that (like the WPA in the US in the 1930s) they involve specially set up projects or schemes as distinct from subsidising temporary employees into work with EXISTING employers. The “existing employer” option is preferable. Once those two common defects in ELR are removed, the result is a system where the unemployed are subsidised into temporary and relatively unproductive jobs with existing employers till better jobs appear. And that in turn is what the unemployed tend to do in a totally free market: a scenario where there are no minimum wage laws and unemployment benefit, and where the unemployed tend to get temporary low paid jobs in both public and private sectors pending the appearance of better jobs. In contrast to a free market, under ELR, take home pay is maintained at socially acceptable levels. Assuming that free markets maximise GDP, it follows that the sort of ELR system advocated here will also maximize GDP. That free market style ELR system actually resembles the ELR system that the UK has at the time of writing, namely the Work Programme. The latter “free market” / Work Programme system is not free of faults, but as long as ELR employees do not displace regular employees to too great an extent, that “free market” ELR system is better than traditional ELR. Keywords. Employer of last resort, Job guarantee, Work project admistration. JEL. J60, J63, J64, J68.","PeriodicalId":432468,"journal":{"name":"Journal of Economics and Political Economy","volume":"104 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2017-03-20","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"127145646","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Abstract. Interest in transnational entrepreneurship has expanded in recent years. However, there are limited qualitative surveys that shed light on the mindset of the contemporary transnational entrepreneur. This article contributes to academic and business literature by presenting the views of a Panama-born investment banker Jose Goldner. Jose Goldner is a partner at Briggs Capital based in Massachusetts, USA. Through an interview conducted by Dr. J. Mark Munoz of Millikin University, with the assistance of business student Haley Hogenkamp, Goldner shares his viewpoints on transnational entrepreneurship and its business implications. Keywords. Transnational entrepreneurship, Entrepreneurship, International business. JEL. L26, M16.
摘要近年来，人们对跨国创业的兴趣日益浓厚。然而，能够揭示当代跨国企业家心态的定性调查有限。本文介绍了巴拿马出生的投资银行家何塞•戈德纳(Jose Goldner)的观点，为学术和商业文献做出了贡献。乔斯·戈尔德纳是美国马萨诸塞州布里格斯资本公司的合伙人。通过米利金大学J. Mark Munoz博士的访谈，在商学院学生Haley Hogenkamp的协助下，Goldner分享了他对跨国创业及其商业含义的看法。关键词。跨国创业，企业家精神，国际商业。冻胶。L26 M16。
{"title":"Transnational Entrepreneurship: An Interview with Investment Banker Jose Goldner","authors":"J. M. Munoz","doi":"10.1453/JEPE.V4I1.1250","DOIUrl":"https://doi.org/10.1453/JEPE.V4I1.1250","url":null,"abstract":"Abstract. Interest in transnational entrepreneurship has expanded in recent years. However, there are limited qualitative surveys that shed light on the mindset of the contemporary transnational entrepreneur. This article contributes to academic and business literature by presenting the views of a Panama-born investment banker Jose Goldner. Jose Goldner is a partner at Briggs Capital based in Massachusetts, USA. Through an interview conducted by Dr. J. Mark Munoz of Millikin University, with the assistance of business student Haley Hogenkamp, Goldner shares his viewpoints on transnational entrepreneurship and its business implications. Keywords. Transnational entrepreneurship, Entrepreneurship, International business. JEL. L26, M16.","PeriodicalId":432468,"journal":{"name":"Journal of Economics and Political Economy","volume":"3 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2017-03-18","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"128050407","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
This study intends to examine the larger issues related to capital liberalisation and also to analyse the reasons for recent support of capital mobility and its repercussions for the future prospects of the economies of developing countries. The objective is to critically examine relevant empirical and theoretical studies in order to answer these questions and address the objectives of this study. The methodology adopted in this study relies on secondary information, reports and published studies to address the research questions. The study finds that following the adoption of capital liberalisation and neoliberalism, the economies of most developing countries have become more vulnerable. If China is excluded, we find that most developing economies have been unable to expand employment opportunities or reduce levels of poverty. In recent years capital liberalisation policy has encouraged capital flight from their economies.
{"title":"Capital Liberalisation and Economic Instability","authors":"Kalim Siddiqui","doi":"10.1453/JEPE.V4I1.1210","DOIUrl":"https://doi.org/10.1453/JEPE.V4I1.1210","url":null,"abstract":"This study intends to examine the larger issues related to capital liberalisation and also to analyse the reasons for recent support of capital mobility and its repercussions for the future prospects of the economies of developing countries. The objective is to critically examine relevant empirical and theoretical studies in order to answer these questions and address the objectives of this study. The methodology adopted in this study relies on secondary information, reports and published studies to address the research questions. The study finds that following the adoption of capital liberalisation and neoliberalism, the economies of most developing countries have become more vulnerable. If China is excluded, we find that most developing economies have been unable to expand employment opportunities or reduce levels of poverty. In recent years capital liberalisation policy has encouraged capital flight from their economies.","PeriodicalId":432468,"journal":{"name":"Journal of Economics and Political Economy","volume":"24 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2017-03-05","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"127552130","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
From ancient times, Greek religion introduced Elysium as a heavenly place to which admission was exclusively reserved for mortals related to gods, heroes, and those blessed by gods. We argue that the rise of artificial intelligence technology will lead to the creation of Elysium cities. Elysium cities agents will be technologists, technocrats, intelligent machines, and wealthy capitalists. These cities will be the first embracers of the artificial intelligence technology and will do so by incorporating five capabilities: physical, intellectual, information, governance, and socio-economic. As early adopters, these cities will acquire tremendous political and economic power and will turn into self-governing city-states. During the early stages of the AI revolution, these Elysium cities will shed millions of unemployed via a process we call De-tech Migration. De-tech cities will be the recipients of the labor migration from the Elysium cities and will rapidly become and remain impoverished. This article presents key policy suggestions that can be adopted by companies and governments to avoid potential decline and find new pathways towards growth and prosperity in an artificial intelligence economy.
{"title":"Artificial Intelligence and Urbanization: The Rise of the Elysium City","authors":"J. M. Munoz, Al Naqvi","doi":"10.1453/JEPE.V4I1.1202","DOIUrl":"https://doi.org/10.1453/JEPE.V4I1.1202","url":null,"abstract":"From ancient times, Greek religion introduced Elysium as a heavenly place to which admission was exclusively reserved for mortals related to gods, heroes, and those blessed by gods. We argue that the rise of artificial intelligence technology will lead to the creation of Elysium cities. Elysium cities agents will be technologists, technocrats, intelligent machines, and wealthy capitalists. These cities will be the first embracers of the artificial intelligence technology and will do so by incorporating five capabilities: physical, intellectual, information, governance, and socio-economic. As early adopters, these cities will acquire tremendous political and economic power and will turn into self-governing city-states. During the early stages of the AI revolution, these Elysium cities will shed millions of unemployed via a process we call De-tech Migration. De-tech cities will be the recipients of the labor migration from the Elysium cities and will rapidly become and remain impoverished. This article presents key policy suggestions that can be adopted by companies and governments to avoid potential decline and find new pathways towards growth and prosperity in an artificial intelligence economy.","PeriodicalId":432468,"journal":{"name":"Journal of Economics and Political Economy","volume":"90 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2017-03-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"127110122","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Abstract. This study develops a business cycle index (BCI) for Lubbock Metropolitan Statistical Area (MSA). The Stock & Watson ( 1989 ; 1991 ; 1993 ) methodology is used to develop the BCI and assumes that the co-movements of key economic indicators have a single underlying, unobservable factor. This factor is extracted from the indicators and used to calculate an index that represents economic conditions through an econometric approach. The model uses the Kalman filter smoothing approach which smooths across variables and over time. This results in an index that is smoother with less pronounced expansions and recessions. Indicator series used for the study are: establishment employment, unemployment, real retail sales and real wages that begin in 1990 and include complete data through the end of 2015. Results indicate that the Lubbock business cycle has peaks and troughs that occur later than those for the national economy. Keywords. Regional Economics; Business Cycles; Economic Indicators. JEL. R15, E32.
{"title":"Metropolitan Business Cycle Analysis for Lubbock","authors":"T. Fullerton, Macie Z. Subia","doi":"10.1453/JEPE.V4I1.1204","DOIUrl":"https://doi.org/10.1453/JEPE.V4I1.1204","url":null,"abstract":"Abstract. This study develops a business cycle index (BCI) for Lubbock Metropolitan Statistical Area (MSA). The Stock & Watson ( 1989 ; 1991 ; 1993 ) methodology is used to develop the BCI and assumes that the co-movements of key economic indicators have a single underlying, unobservable factor. This factor is extracted from the indicators and used to calculate an index that represents economic conditions through an econometric approach. The model uses the Kalman filter smoothing approach which smooths across variables and over time. This results in an index that is smoother with less pronounced expansions and recessions. Indicator series used for the study are: establishment employment, unemployment, real retail sales and real wages that begin in 1990 and include complete data through the end of 2015. Results indicate that the Lubbock business cycle has peaks and troughs that occur later than those for the national economy. Keywords. Regional Economics; Business Cycles; Economic Indicators. JEL. R15, E32.","PeriodicalId":432468,"journal":{"name":"Journal of Economics and Political Economy","volume":"26 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2017-03-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"122913770","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Abstract. Ecuador is an oil exporter country but it is also an importer of oil derivatives products, in this research the relationship between the world average price of oil and the GDP per capital of Ecuador is studied, taking annual data of both from 1980 to 2015 and using the methodology of Vector Autoregressive (VAR), it is concluded according to the Impulse Response Function that a positive shock on the price of oil affects positively the GDP growth of Ecuador for 2 unit times and then returns to its natural state later. This must be explained because Ecuador is a net exporter of oil, the VAR model showed itself stable, in addition it was demonstrated that there is a causal relationship of GDP to the Price according to methodology of Toda-Yamamoto. Keywords. Average Oil price, GDP, VAR, Ecuador. JEL. C32, 040, F20.
{"title":"Oil Price and Real GDP Growth of Ecuador: A Vector Autoregressive Approach","authors":"Jesser Paladines","doi":"10.1453/jepe.v4i1.1153","DOIUrl":"https://doi.org/10.1453/jepe.v4i1.1153","url":null,"abstract":"Abstract. Ecuador is an oil exporter country but it is also an importer of oil derivatives products, in this research the relationship between the world average price of oil and the GDP per capital of Ecuador is studied, taking annual data of both from 1980 to 2015 and using the methodology of Vector Autoregressive (VAR), it is concluded according to the Impulse Response Function that a positive shock on the price of oil affects positively the GDP growth of Ecuador for 2 unit times and then returns to its natural state later. This must be explained because Ecuador is a net exporter of oil, the VAR model showed itself stable, in addition it was demonstrated that there is a causal relationship of GDP to the Price according to methodology of Toda-Yamamoto. Keywords. Average Oil price, GDP, VAR, Ecuador. JEL. C32, 040, F20.","PeriodicalId":432468,"journal":{"name":"Journal of Economics and Political Economy","volume":"22 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2017-02-25","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"133178084","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
This study examines the asymmetries in the tax-spending nexus for Burundi using a three-variable model. The study employs a threshold cointegration test with asymmetric adjustment advanced by Enders & Siklos (2001). The findings indicate that government spending, taxes and grants are cointegrated with asymmetric adjustment. Causality tests from the estimated asymmetric error correction model suggest that in the short run there is an independent relationship between government spending and taxes in Burundi. Pertaining to the impact of grants, the results show that grants encourage the government of Burundi to spend more, but, conversely, they also discourage tax revenue, which is known as the tax displacement hypothesis. The findings further show that only government spending responds to budgetary disequilibrium, and this occurs when the budget situation is worsening. This implies that in Burundi, to restore the equilibrium when the budget situation is worsening, the adjustment is made by reducing spending. A policy intuition arising from this study is that, to reduce budget deficits, Burundi should reduce its grant-dependence and improve its tax collection system as well as cut its spending in sectors where it is not productive and reallocate it to more productive sectors.
{"title":"Analysis of Asymmetries in the Tax-Spending Nexus in Burundi","authors":"A. Ndoricimpa","doi":"10.1453/JEPE.V4I1.1160","DOIUrl":"https://doi.org/10.1453/JEPE.V4I1.1160","url":null,"abstract":"This study examines the asymmetries in the tax-spending nexus for Burundi using a three-variable model. The study employs a threshold cointegration test with asymmetric adjustment advanced by Enders & Siklos (2001). The findings indicate that government spending, taxes and grants are cointegrated with asymmetric adjustment. Causality tests from the estimated asymmetric error correction model suggest that in the short run there is an independent relationship between government spending and taxes in Burundi. Pertaining to the impact of grants, the results show that grants encourage the government of Burundi to spend more, but, conversely, they also discourage tax revenue, which is known as the tax displacement hypothesis. The findings further show that only government spending responds to budgetary disequilibrium, and this occurs when the budget situation is worsening. This implies that in Burundi, to restore the equilibrium when the budget situation is worsening, the adjustment is made by reducing spending. A policy intuition arising from this study is that, to reduce budget deficits, Burundi should reduce its grant-dependence and improve its tax collection system as well as cut its spending in sectors where it is not productive and reallocate it to more productive sectors.","PeriodicalId":432468,"journal":{"name":"Journal of Economics and Political Economy","volume":"7 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2017-02-24","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"125371228","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
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