Incorporating migrant remittances among other variables into a growth model, and employing panel data over the 1970–2008 period, this study investigates the impact of migrant remittances on economic ...growth in South Asia. Migrant remittances are found to have a significant positive effect on economic growth. A significant positive interactive effect of remittances on economic growth is detected through education and financial sector development.
•The relationship between corruption, the shadow economy, and public debt is investigated.•Results suggest that an increase in corruption leads to an increase in public debt.•An increase in the size ...of the shadow economy leads to an increase in public debt.•A larger shadow economy compounds the positive influence of corruption on public debt.
This paper investigates the relationship between corruption, the shadow economy, and public debt. It additionally examines whether the shadow economy increases the adverse effects of corruption on public debt. The model is empirically tested for 126 countries over 1996–2012. Using Ordinary Least Squares (OLS), Fixed effects, system generalized method of moments (GMM) and instrumental variable estimation, and two measures of corruption—the Transparency International Corruption Perceptions Index and the Kaufmann et al. Corruption Index—results confirm that increased corruption and a larger shadow economy lead to an increase in public debt. Results additionally indicate that the shadow economy magnifies the effect of corruption on public debt suggesting that they act as complements. Results also suggest that a larger shadow economy reduces tax revenues and thus increases public debt, similarly, higher government expenditure enhances the effects of corruption on government debt. Hence reducing corruption should be a primary policy goal of governments. Given the complementarity detected between corruption and the shadow economy, reducing corruption would also lead to a fall in the size of the shadow economy and public debt. Reducing corruption will also minimize the adverse effects of corruption on government debt through government expenditure.
► The influence of migrant remittances on two dimensions of the financial sector, namely, size and efficiency is investigated. ► Migrant remittances contribute to increasing the size and efficiency ...of the financial sector. ► Remittances lead to larger increases in financial sector size in countries in which the government ownership of banks is lower. ► Remittances lead to larger increases in efficiency in countries in which the government ownership of banks is higher.
This study investigates the influence of migrant remittances on two dimensions of the financial sector, namely, size and efficiency in a sample of 94 non-OECD economies. Evidence suggests that migrant remittances contribute to increasing the size and efficiency of the financial sector. The study, in addition, examines the impact of remittances on financial sector size and efficiency through their interaction with the government ownership of banks. The results suggest that remittances lead to larger increases in financial sector size in countries in which the government ownership of banks is lower, and increases in efficiency in countries in which the government ownership of banks is higher.
Investigating the impact of health capital disaggregated by gender on economic growth in a sample of 210 countries over the period 1990 to 2008, this study suggests that the influence of health ...capital across countries cannot be generalized. The results for the full sample indicate that health capital does not have a robust and significant effect on economic growth unless through their interactions with health expenditure and education. The results disaggregated by income group reveal that health capital has a positive robust influence on economic growth in high and upper middle income economies. In low and low middle income economies, health capital gains statistical significance only through their interaction with education and health expenditure. Increased fertility rates act to reduce the influence of health capital on economic growth.
The existing literature has focussed extensively on the development outcomes resulting from international migrant remittances. Yet, the human capital channel promoting remittance effectiveness has ...received little attention. Given the multilateral policy drive to promote female literacy in recent decades, it is relevant to examine whether female human capital formation improves the effectiveness of remittances in terms of its impact on per capita income. Using a panel of 103 developing economies over the period 1970-2012, this paper attempts to answer this question empirically. The paper finds that female human capital affects the remittance-growth relationship differently according to whether it is the primary, secondary or tertiary level of human capital. Our estimates of the marginal impacts of remittances show that while higher levels of skilled human capital (secondary and tertiary enrolments) enhance the marginal impact of remittances on per capita income, low-skilled human capital (primary enrolments) fails to do so. Our conclusion stresses the need to encourage female human capital beyond the promotion of literacy rates in developing countries.
This paper examines the relationship between corruption and financial sector development in 106 countries. Using dummy variables to capture different levels of corruption, and interaction terms to ...see if financial sector development depends on institutional structures, we find evidence to support the ‘sand the wheels’ hypothesis. The results suggest that a decline in corruption is associated with higher levels of financial sector development.
Using data covering 1970–2008 for South Asia, this study investigates the influence of human capital disaggregated by gender, on economic growth. We use an extended version of the Solow growth model ...with per capita gross domestic product (GDP) a function of the key variables, viz. physical capital accumulation, human capital accumulation, trade openness and capital flows, fiscal policy and financial development. The key contribution of this study is to show that openness when interacted with the human capital stock disaggregated by gender, has differential impacts on economic growth. While the positive impact of male secondary schooling captures the direct skill effect relative to primary schooling, the marginal influence of female primary/secondary schooling fails to show a positive impact on growth at higher levels of openness. An implication stemming from this study is that educational opportunities for females at the secondary level should be increased for South Asia.
This paper investigates the effects of corruption on the emigration rate of low-, medium- and high-skilled individuals at the country level. Fixed-effects, system generalized method of moments (GMM) ...and instrumental variable estimations are used to establish a causal relationship between emigration and corruption. The empirical results indicate that as corruption increases, the emigration rate of high-skilled migrants also increases. The emigration rate of individuals with low and medium levels of educational attainment, however, increases at low levels of corruption and then decreases beyond a threshold of 3.4-4.0, where corruption is measured on a scale of 0 (not corrupt) to 10 (totally corrupt). Splitting the sample by income inequality suggests that increased inequality reduces the ability for medium- and low-skilled migrants to emigrate. Therefore, government action should focus on controlling corruption in order to prevent a brain drain.
Gender inequality in education Cooray, Arusha; Potrafke, Niklas
European Journal of Political Economy,
06/2011, Letnik:
27, Številka:
2
Journal Article
Recenzirano
Odprti dostop
"We investigate empirically whether political institutions or culture and religion underlie gender inequality in education. The dataset contains up to 157 countries over the 1991-2006 period. The ...results indicate that political institutions do not significantly influence education of girls: autocratic regimes do not discriminate against girls in denying educational opportunities and democracies do not discriminate by gender when providing educational opportunities. The primary influence on gender inequality in education is through culture and religion. Discrimination against girls is especially pronounced in Muslim dominated countries." (Author's abstract, IAB-Doku). Die Untersuchung enthält quantitative Daten. Forschungsmethode: empirisch-quantitativ; empirisch; Querschnitt; Längsschnitt. Die Untersuchung bezieht sich auf den Zeitraum 1991 bis 2006.
We develop a theoretical model to investigate the relation between corruption and labour supply. The theoretical model shows that corruption affects labour supply in the formal sector by reducing ...productivity, changing the supply of labour in the shadow economy, altering the tax burden, and distorting the saving-consumption trade-off. The predictions of the theoretical model are tested by using panel data methods for 132 countries. Using the labour force participation rate (LFPR) and employment to population ratio as proxies for labour supply, the estimated empirical results show that corruption has a statistically significant robust direct negative effect on the LFPR and employment to population ratio. Corruption also has an indirect effect on the LFPR and employment to population ratio through a higher tax burden and increase in size of the shadow economy. Higher wages, an increase in consumption, and better regulatory quality are found to reduce the negative impact of corruption on labour supply, however, the overall effect on labour supply is negative, suggesting that the negative effects of corruption outweigh the positive effects of improved regulatory quality, wages, and higher consumption. Our findings imply that in order to reduce the negative effect of corruption on labour supply, governments need to develop a comprehensive approach to not only combatting corruption itself but also working on improving regulation and promoting policies that decrease activities in the shadow economy.
•A theoretical model between corruption and labour supply is developed.•Corruption has a direct negative effect on labour supply proxied by the LFPR and employment to population ratio.•Corruption indirectly reduces labour supply through a higher burden of taxes and larger shadow economy.•Interactions with wages, consumption, and the regulatory quality impact labour supply positively.•The negative effects of corruption however, outweigh the positive effects of these variables.
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