Constantinos Alexiou

A Keynesian-Kaleckian model of investment determination: a panel data investigation

The undertaken study purports to assess the empirical merits of the Post Keynesian doctrine as this is reflected by both the Keynesian as well as the Kaleckian theoretical approaches to investment determination. In doing so, a generalized method of moments panel data methodology provides the econometric platform upon which the respective models have been vigorously tested. Annual time-series data were used, spanning from 1970 to 2005, for the G7 economies. The generated evidence confirms previous analyses insofar as capacity utilization and profits assume a key role in the determination of investment.

An Econometric Investigation into the Macroeconomic Relationship between Investment and Saving: Evidence from the EU Region

Within the EU region, the emerging policy orientation of pursuing balanced or in-surplus budgets as a means of revitalising investment has dominated economic policy. Nonetheless, the notion that saving must be boosted in order to expand investment, is a contention that has to be taken with a ‘pinch of salt’. This study, by elaborating on the causal dimension between investment and saving, provides econometric evidence on the basis of which investment is a variable of the utmost importance.

Crafting a Post Keynesian Macroeconomic Framework to Explain European Unemployment: Econometric Evidence from the European Union Countries

It is beyond any shadow of a doubt that changes in the components of effective demand influence the way the unemployment rate fluctuates in contemporary economies around the world. Over the last 20 years, however, a number of theoretical models emerged, each claiming to have hit on a solution to the rampant problem of unemployment. In view of these developments, the existing relationship between effective demand and unemployment appeared to have been fading into oblivion. This paper seeks to restore the significance of this relationship by arguing that the components of effective demand can have adverse effects on the employed population of European Union (EU) member states when deflationary policies-such as the ones implied by the Maastrichts convergence criteria, start to hold sway. The contractionary nature of the Maastricht rules that impact on the aggregate demand components, which in turn negatively affect the unemployment rate, is the hypothesis that will act as the reference point for conducting the empirical analysis. The rest of this article is organized as follows. First, the article briefly touches on some of the most prominent theories of the causes of unemployment. Second, it provides the theoretical framework on which the empirical investigation is based. Next, the article dwells upon the econometric methodology adopted for the estimation. Finally, it elaborate on the results generated, and then, concludes.

INSTITUTIONAL QUALITY AND ECONOMIC GROWTH: EMPIRICAL EVIDENCE FROM THE SUDANESE ECONOMY

This study aims to explore the extent to which conventional methods used in the majority of relevant growth studies can successfully interpret the economic performance of a highly underdeveloped African country such as Sudan. Applying an ARDL boundstesting approach to cointegration proposed by Pesaran et al. (2001), we look into the short-run as well as long-run relationships between institutional and various other key economic variables and economic growth over the period 1972-2008. The empirical results obtained suggest that, for the Sudanese economy, the quality of the institutional environment is one of the most important factors in defining economic prosperity.

An Empirical Investigation of Kaldor's Growth Laws: Evidence from the Mediterranean Region

This study empirically evaluates the Kaldorian contention i.e., ‘manufacturing is the engine of growth’. The Kaldorian growth laws are subjected to econometric testing and the generated evidence supports the Kaldorian postulates. This suggests that resources have to be mobilised towards manufacturing should the economies in the scrutinised region attain a higher level of economic growth and development. For the econometric investigation a Time-Series-CrossSection (TSCS) methodology has been applied to five Mediterranean countries, over the period 1975 to 2006.

Bitcoin: The road to hell is paved with good promises

In this paper, by using econometric techniques we provide evidence that bitcoin exhibited the formation of speculative bubble in 2017. To conceptually rationalize the results, we delve into the extant theoretical approaches developed by Kindlebergers (1978) speculative bubbles and Minskys (1992) financial instability hypothesis. Certainly, bitcoin has spurred a revolution in payment technology that, if treated cautiously can facilitate financial intermediation and inclusion. Ultimately, whether or not bitcoin constitutes a bubble is a decision for investors as the road to hell is paved with good promises.

Drivers of the real effective exchange rates in high and upper-middle income countries

This paper revisits the nexus between real effective exchange rate (REER) and total factor productivity (TFP) by controlling for trade openness, financial development and natural resources rents. We use a sample of 60 high‐income and upper‐middle income countries over the period 1995–2015 and employ the GMM estimation framework. Our results advance the empirical knowledge on the drivers of REER by providing robust evidence that the impact of TFP is not uniform across different country clusters. We find that in high‐income countries, increasing productivity causes the REER to depreciate hence becoming more trade competitive while the opposite is true for upper‐middle income countries. Furthermore, financial development and natural resources rents have no meaningful impact in the case of upper‐middle income countries but retain a significant effect in high‐income countries. Trade openness plays a key role in explaining the variation in REER in both country clusters.

Banking sector depth and economic growth nexus: a comparative study between the natural resource-based and the rest of the world’s economies

Abstract This paper investigates the relationship between banking sector depth and long-term economic growth in the natural resource-based economies vis-à-vis economies that are not dependent on natural resources. For the empirical investigation, a Generalised Method of Moments estimator for dynamic panel data models is adopted for 194 countries spanning the period 1964–2013. Using different measures of banking sector depth and economic growth, the investigation yields three key findings. First, the banking–growth relationship is non-linear and positive within certain levels of banking sector depth in both country groups. Second, the time lag between the change in the level of banking sector depth and the effect on economic growth is shorter in the natural resource-based countries than in the other countries. Finally, the total effect of banking sector deepening on long-term economic growth is weaker in economies with abundant natural resources than in the rest of the world.

Cyclical Multiplier and Zero Low Bound Effects of Government Expenditure on Economic Growth: Evidence for Greece

This study explores the impact of government expenditure multipliers on economic growth utilising an Autoregressive Distributed Lag (ARDL) approach. We provide evidence on the short-term dynamics as well as the long-run expenditure multiplier effects on economic growth for the Greek economy over the period 1960–2014. We find that the size of the multiplier does not differ substantially over the phases of the business cycle. Our results also indicate that irrespective of the scale of inflation, government expenditure positively affects economic growth, whilst inconclusive evidence is obtained in the case of exceptionally low interest rates.

The effect of patent enforcement strength and FDI on economic growth

Purpose This paper aims to study the effects of the strength of patent enforcement on economic growth following the signing of the agreement on Trade-Related Aspects of Intellectual Property Rights and the role of inward foreign direct investment (FDI) flows in mediating and enhancing this relationship. Design/methodology/approach Following a generalized method of moments methodology, use is made of a new longitudinal index measuring the strength of enforcement-related aspects of patent systems. Findings Stronger levels of patent enforcement have a significant positive effect on the economic growth of both developed and developing countries. Importantly, inward FDI flows have a mediating role in positively boosting this effect for all countries and particularly for developed countries. Originality/value This is the first empirical study of the role of the strength of patent enforcement (“law in action”) in stimulating economic growth, as previous empirical studies have focused on the effect of the strength of patent law protection (“law on the books”). The failure in the past to allow for “law in action” was mainly due to the lack of available data that could proxy for the strength of patent enforcement levels in a country. This study utilizes a newly published, longitudinal index that captures the strength of the enforcement-related aspects of patent systems.