Dynamic Panel Data Model Research Papers (original) (raw)

The authors attempt to highlight the effects of the recent surge of FDI in the enlargement states on domestic investment and growth. A similar analysis is carried out for the EU-15 in order to ascertain whether this type of capital inflow... more

The authors attempt to highlight the effects of the recent surge of FDI in the enlargement states on domestic investment and growth. A similar analysis is carried out for the EU-15 in order to ascertain whether this type of capital inflow has a differential impact in these two regions of the European Union. Empirical analysis, based on dynamic panel data models, suggests the existence of a positive contribution of FDI to greater domestic investment and economic growth in the new member states. The evidence obtained for the EU-15 old member countries confirms the FDI-growth nexus but does not suggest a positive impact of FDI on domestic investment, which would be consistent with these capital inflows being of a different nature for these more advanced economies.

The GMM estimator usually employed in the panel data literature, has an unbounded influence function. This means that the estimator is easily influenced by outliers in the data. This paper develops a variant of the GMM estimator that is... more

The GMM estimator usually employed in the panel data literature, has an unbounded influence function. This means that the estimator is easily influenced by outliers in the data. This paper develops a variant of the GMM estimator that is less sensitive to anomalous observations. Conditions for consistency and asymptotic normality of the robust estimator are presented. The robustness properties of

The role of cash-flow variables and uncertainty in capital accumulation is not necessarily robust to corporate restructuring and industrial dynamics. We propose a micro-econometric procedure to investigate the stability of investment... more

The role of cash-flow variables and uncertainty in capital accumulation is not necessarily robust to corporate restructuring and industrial dynamics. We propose a micro-econometric procedure to investigate the stability of investment behaviour. Applying system GMM methods on a panel data set for 253 oil and gas companies over 14 years, we estimate accelerator models of investment with error- correction, and

By 2014 Indonesia registered 11.6 million inbound foreign tourists, 135% higher than the year 2000. Since then, government policies to promote tourism flourished. This article investigates the determinants of inbound tourism from the top... more

By 2014 Indonesia registered 11.6 million inbound foreign tourists, 135% higher than the year 2000. Since then, government policies to promote tourism flourished. This article investigates the determinants of inbound tourism from the top nine mayor tourist origin countries into Indonesia covering the period of 2000 to 2014. This research employs a dynamic panel dataset to estimate the impact of per capita real income, relative prices, accommodation capacity, distance, and public infrastructure investment on international tourism demand in Indonesia, capturing demand- and supply-side effects. The results show that per capita income of tourists, relative price, and available rooms have a positive effect on tourism expenditure in Indonesia, while distance has a negative effect. Dummy variables capture large negative shocks in tourism arising from two terrorist attacks in 2002 and 2005, as well as from the global financial crisis in 2008. Income plays a positive but low impact on tourism demand compared to other nations. The positive effect of prices suggests an advantage of Indonesia in competitive tourism prices. Nevertheless, low prices also denote low value in tourism services. The substantial impact of accommodation may indicate that significant effects of tourism are allocated in lodging, minimizing the impact on other sectors

The financial literature claims that venture capita l (VC) financing spurs the growth of new technology -based firms (NTBFs). First, VC investors allegedly have s uperior scouting capabilities, so they provide grea t hidden value firms... more

The financial literature claims that venture capita l (VC) financing spurs the growth of new technology -based firms (NTBFs). First, VC investors allegedly have s uperior scouting capabilities, so they provide grea t hidden value firms with the financing they would ot herwise be unable to obtain. Second they also provi de monitoring and coaching services to portfolio compa nies. Third, VC financing has a "certification" eff ect, making easier for portfolio firms obtaining support from third parties. The aim of the paper is to tes t whether VC financing has a positive effect on the subsequen t growth of sales and employment of portfolio companies by taking into account the actual willingness of th e NTBF to receive equity financing. We consider a 1 0 year long longitudinal dataset composed of 215 Italian N TBFs, most of which are privately held. The sample includes both VC-backed and non VC-backed firms. In order to capture the effects of VC financing on th e subsequent gro...

The Japanese mobile market has recently shown a remarkable growth in the last decade, with more than 106.2 million 3G (3rd Generation, or W-CDMA) subscribers and 4.4 million 2G (2nd Generation, or PDC) as of December 2009. This paper... more

The Japanese mobile market has recently shown a remarkable growth in the last decade, with more than 106.2 million 3G (3rd Generation, or W-CDMA) subscribers and 4.4 million 2G (2nd Generation, or PDC) as of December 2009. This paper attempts to analyze factors promoting Japanese mobile phone, focusing on 3G technologies. Factors promoting it can be summarized as follows: (1)

The aim of the study is to measure the impact of health expenditures on economic growth during the period of 1996-2014 for 47 European and Central Asian countries. Two different methodologies were used in the empirical analysis of the... more

The aim of the study is to measure the impact of health expenditures on
economic growth during the period of 1996-2014 for 47 European and
Central Asian countries. Two different methodologies were used in the
empirical analysis of the study. First, the fixed effect model was estimated using the Driscoll-Kraay Standard Error Estimator. The coefficients were then estimated using the Two Stages System GMM method. The results obtained are parallel to each other. In both analyzes,per capita health expenditure has a statistically significant and positive effect on economic growth.

We investigate the impact of aggregate aid, earmarked aid, committed or disbursed, on social indicators in health and education. A literature review shows that for earmarked aid use of commitment data mostly leads to insignificant... more

We investigate the impact of aggregate aid, earmarked aid, committed or disbursed, on social indicators in health and education. A literature review shows that for earmarked aid use of commitment data mostly leads to insignificant results; use of disbursement data mostly leads to significantly favourable results; panel data models including lagged dependent variables lead to significantly favourable results for at

This article extends the common correlated effects pooled (CCEP) estimator to homogenous dynamic panels. In this setting, CCEP suffers from a large bias when the time span (T) of the dataset is fixed. We develop a bias-corrected CCEP... more

This article extends the common correlated effects pooled (CCEP) estimator to homogenous dynamic panels. In this setting, CCEP suffers from a large bias when the time span (T) of the dataset is fixed. We develop a bias-corrected CCEP estimator that is consistent as the number of cross-sectional units (N) tends to infinity, for T fixed or growing large, provided that the specification is augmented with a sufficient number of cross-sectional averages, and lags thereof. Monte Carlo experiments show that the correction offers strong improvements in terms of bias and variance. We apply our approach to estimate the dynamic impact of temperature shocks on aggregate output growth.

We investigate the impact of aggregate aid, earmarked aid, committed or disbursed, on social indicators in health and education. A literature review shows that for earmarked aid use of commitment data mostly leads to insignificant... more

We investigate the impact of aggregate aid, earmarked aid, committed or disbursed, on social indicators in health and education. A literature review shows that for earmarked aid use of commitment data mostly leads to insignificant results; use of disbursement data mostly leads to significantly favourable results; panel data models including lagged dependent variables lead to significantly favourable results for at

Recent developments in the oil and gas industry suggest that investment behaviour is not necessarily changeless over time. We propose a micro-econometric procedure to investigate the stability of investment behaviour. Applying system GMM... more

Recent developments in the oil and gas industry suggest that investment behaviour is not necessarily changeless over time. We propose a micro-econometric procedure to investigate the stability of investment behaviour. Applying system GMM methods on a panel data set for 253 oil and gas companies over 14 years, we estimate accelerator models of investment with error-correction. Robust econometric evidence indicates

The relations between economic growth and international labor standards are explored in a panel of 121 countries from 1974 to 2004. A large literature has empirically tested the neoclassical and endogenous growth models using... more

The relations between economic growth and international labor standards are explored in a panel of 121 countries from 1974 to 2004. A large literature has empirically tested the neoclassical and endogenous growth models using cross-sectional or panel regressions. Here, the growth model is augmented with labor standards. A dynamic panel data model is used to account for the endogeneity of the determinants of economic growth and labor standards. Two measures of labor standards are used: the rate of work injuries and the rate of strikes and lockouts. The estimation results show that higher levels of labor standards are associated with higher rates of economic growth.

The relations between economic growth and international labor standards are explored in a panel of 121 countries from 1974 to 2004. A large literature has empirically tested the neoclassical and endogenous growth models using... more

The relations between economic growth and international labor standards are explored in a panel of 121 countries from 1974 to 2004. A large literature has empirically tested the neoclassical and endogenous growth models using cross-sectional or panel regressions. Here, the growth model is augmented with labor standards. A dynamic panel data model is used to account for the endogeneity of the determinants of economic growth and labor standards. Two measures of labor standards are used: the rate of work injuries and the rate of strikes and lockouts. The estimation results show that higher levels of labor standards are associated with higher rates of economic growth.

Estimation of the dynamic error components model is considered using two alternative linear estimators that are designed to improve the properties of the standard first-differenced GMM estimator. Both estimators require restrictions on... more

Estimation of the dynamic error components model is considered using two alternative linear estimators that are designed to improve the properties of the standard first-differenced GMM estimator. Both estimators require restrictions on the initial conditions process. Asymptotic efficiency comparisons and Monte Carlo simulations for the simple AR(1) model demonstrate the dramatic improvement in performance of the proposed estimators compared to the usual first-differenced GMM estimator, and compared to non-linear GMM. The importance of these results is illustrated in an application to the estimation of a labour demand model using company panel data.

The relations between economic growth and international labor standards are explored in a panel of 121 countries from 1974 to 2004. A large literature has empirically tested the neoclassical and endogenous growth models using... more

The relations between economic growth and international labor standards are explored in a panel of 121 countries from 1974 to 2004. A large literature has empirically tested the neoclassical and endogenous growth models using cross-sectional or panel regressions. Here, the growth model is augmented with labor standards. A dynamic panel data model is used to account for the endogeneity of the determinants of economic growth and labor standards. Two measures of labor standards are used: the rate of work injuries and the rate of strikes and lockouts. The estimation results show that higher levels of labor standards are associated with higher rates of economic growth.

By 2014 Indonesia registered 11.6 million inbound foreign tourists, 135% higher than the year 2000. Since then, government policies to promote tourism flourished. This paper investigates the determinants of inbound tourism from the top... more

By 2014 Indonesia registered 11.6 million inbound foreign tourists, 135% higher than the year 2000. Since then, government policies to promote tourism flourished. This paper investigates the determinants of inbound tourism from the top nine mayor tourist origin countries into Indonesia covering the period of 2000 to 2014. This research employs a dynamic panel dataset to estimate the impact of per capita real income, relative prices, accommodation capacity, distance and public infrastructure investment on international tourism demand in Indonesia, capturing demand and supply-side effects. The results show that per capita income of tourist, relative price, and available rooms have a positive effect on tourism expenditure in Indonesia, while distance has a negative effect. Dummy variables capture large negative shocks in tourism arising from two terrorist attacks in 2002 and 2005, as well as from the global financial crisis in 2008. Income plays a positive but low impact on tourism dem...

While theorists differ sharply on the expected economic impact of stock options, typically empirical work has found a positive association between option schemes and firm productivity. However, existing data are limited and may not enable... more

While theorists differ sharply on the expected economic impact of stock options, typically empirical work has found a positive association between option schemes and firm productivity. However, existing data are limited and may not enable reliable investigation of the productivity effects. New panel data for all Finnish publicly listed firms during 1992-2002 enable us to distinguish plans that are broad