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Looking for the right human capital proxy

This paper aims to test different approaches of human capital stock approximation. It faces one of the main questions in explaining link between human capital and economic growth. It tries to step forward in answering what is the best proxy of human capital. It starts from Barro & Lee and Cohen & Soto datasets which are expanded by Mincerian approach to human capital measurement and educational structure of population as a human capital proxy. The original dataset covering 73 countries within 1960-1990 is being re-tested and results from panel data regression analyses are compared with expanded dataset.

Abstract

The phenomenon of globalization has greatly influenced migration in recent years in the European Union. In this article we aim to analyze the benefits of migration in the economy by emphasizing the impact of remittances on the economic development of a country. Remittances are considered as an external source of important, stable funds that help the economic development of a country. We identify also the macroeconomic determinants of remittances. For the statistical and econometric analysis of these factors, we have chosen to use the Panel Data Regression for the countries of the European Union. To analyze the benefits of remittances, the most appropriate macroeconomic indicator is GDP. So in the first part of the article we will present the impact of globalization and migration on remittances, and in the second part we will highlight the economic growth through the presence of remittances. This article examines the role of migrants as a particular segment of the market and as a resource for development. All aspects to be analyzed will outline an overview of population emigration and factors that influence the development of the economy at a time when globalization is on the rise.

Abstract

The paper investigates the relationship between farm size and productivity on chosen sample of companies in Slovakia. The impact of farm size in hectares and credits per hectare in euro on the production per hectare are analysed. The ordinary least square (OLS) and fixed effect model (FEM) regression framework confirms the inverse relationship between farm size and productivity. Credits per hectare have positive impact on productivity of farms. The results of the models show increasing returns to scale in Slovak farms.

Abstract

The Southern Region of Europe is economically well-developed with highly industrialized urban areas and with great agricultural potential. The empirical analysis is based on an econometric assessment that measures the impact of the VAT on the rate of economic growth for years between 1996 and 2017. The empirical evidence highlighted a significant positive impact of VAT on economic growth, but a poor and ineffective use of the tax revenues during the period under review. Moreover, evidence revealed relatively high rates of VAT in the countries analyzed, with negative impact on the aggregate consumption and a diminishing effect of the consumer’s income.

Abstract

Research Background: The complexities of taxes in business have a tendency of endangering investment decisions at every point in time, if such complexities are not strategically managed.

Purpose: This study therefore assesses the effect of corporate taxation on the investment policy of quoted manufacturing firms in Nigeria.

Research Methodology: Secondary data sourced from annual reports of the selected firms were analysed using descriptive and inferential statistics. Specifically, static panel least square regression techniques were used.

Result: The results of the study revealed that company income tax (CIT) is positively related to the investment decision of the quoted manufacturing firm (INV), and thus enhances the investment of the quoted manufacturing firm (INV) in Nigeria. The probability value revealed that company income tax (CIT) had a statistical significant correlation with the investment of the quoted manufacturing firm in Nigeria. This implies that higher corporate income taxes are associated with lower investment in manufacturing firms.

Novelty: This study digressed from examining the effects of corporate tax on financial performance as that was the major focused area in this context. However, this study assessed its effect on investment decisions. Hence, this study was able to recommend that the Nigerian government should encourage and enhance manufacturing investment decision by designing an appropriate corporate income tax policy. An investment decision that is fostered on new capital, encourages the implementation of new production techniques and thus should be engineered for the development of manufacturing firms.

Abstract

The main aim of the paper is to investigate the empirical relationship between research and development (R&D) expenditures and economic growth in the European Union member states in the period of 2000–2013. The empirical analysis is based on panel data regressions. The estimated model is the production function type standard growth model extended with R&D stock variable. The results show a statistically significant impact of R&D expenditures on the economic growth in the EU countries. The significance for R&D coefficient remains robust to different sub-periods, but the level of significance decreases as a sub-sample of new EU countries was considered.

Abstract

Despite various studies on good corporate governance (GCG), many GCG mechanisms do not seem to work effectively in Indonesian companies due to frequent conflicts between majority and minority shareholders. A more independent party needs to be offered to solve this unique agency problem. This study attempts to analyze how independent parties; foreign and domestic institutional ownership, and independent commissioners may provide solution to agency problem. Results of panel data regression show a positive and significant influence of foreign institutional ownership on dividends and stock prices, whereas domestic institutional ownership and independent commissioners do not significantly affect shareholder wealth. The study also proposes a new model to minimize the possibility of agency problems in Indonesian context through the establishment of foreign institutional ownership as an independent party.

Abstract

Applying the linear LAS (Latin American Structuralists) technological intensity model in Africa, this paper presents African nations are still diversifying their outputs towards the ubiquitous (fewer complexes) products. Put it simple, using the economic complexity index of Africa (explanatory variable) as a proxy for the technological intensity in Africa and per capita GDP gap (explanatory variable) as a proxy for technology gap, the paper presents a significant and positive relationship between economic complexity index of Africa and the time derivative of the economic complexity index of Africa (the explained variable). This implies that “weak” effort African nations exerted so far in diversifying their outputs towards the less ubiquitous commodities and absence of “automatic catch up tendency” (unlike what is presupposed by the mainstream neo-classical growth models). The linear panel data regression is employed on sample of 23 African economies and OECD member economies for the period 1996-2014.

Abstract

This paper investigates the influence of education and human capital on economic growth in European Union countries before Brexit, for a time span of 14 years in the period 2003 - 2016. A panel data regression model was applied taking into account the impact of human capital on the economic growth from the perspective of education levels and human capital movement. Therefore human capital is described by the variables number of researchers, youth not in education, employment or training, the migration changing rates and the labor force for three different education levels (basic, intermediate and advanced). The dependent variable used in the paper as a measurement of economic growth was considered annual growth rate of Gross Domestic Product. The results show that the hypothesis of the importance and impact of human capital on economic growth is supported.

Abstract

This study aims to investigate the potential factors of influence on corporate financial performance, by using the panel data regression analysis. The research was employed for a sample consisting of 40 companies listed on the Bucharest Stock Exchange, over the period 2010-2012. Corporate financial performance considered as the dependent variable was proxied through return on assets, return on equity, and Tobin’s Q ratio. There were selected the following factors that could influence corporate financial performance: capital structure, firm size, and corporate social responsibility involvement. Likewise, several control variables have been introduced: structure of the ownership and institutional investors. The results show a strong negative relationship between corporate financial performance and debt to equity ratio. Also, there has been revealed a positive influence of the company size on performance, although weak. Furthermore, the relationship between financial performance and social performance has been statistically validated, both using accounting and market ratios.