Panoeconomicus http://panoeconomicus.org/index.php/jorunal <p>Panoeconomicus is an economic quarterly with a general orientation. We publish original scientific papers, scientific reviews, preliminary reports, conference papers, professional papers, polemics and book reviews.</p> Savez ekonomista Vojvodine en-US Panoeconomicus 1452-595X In Defense of Public Debt by Barry Eichengreen, Asmaa El-Ganainy, Rui Esteves, and Kris James Oxford University Press, 2021. http://panoeconomicus.org/index.php/jorunal/article/view/1745 Boris Begović Copyright (c) 2022 Panoeconomicus 2022-07-19 2022-07-19 69 4 651 661 Does Innovation Co-move with FDI? Evidence from OECD Countries http://panoeconomicus.org/index.php/jorunal/article/view/1475 <p>In this study, the panel co-integration test combined with structural breaks was used to explore the long-term co-movement between FDI and patent and trademark applications, in accordance with 33 OECD countries from 1999 to 2018. The robust results demonstrate that both innovation variables including patent and trademark co-move with FDI in the OECD sample. Furthermore, this long-term co-movement of FDI and innovation experiences some structural breaks during the period 2003-2010. Finally, there is a long-term co-movement between FDI inflows and innovation activity in OECD countries.<br> <br><strong>Keywords</strong>: Innovation, FDI, Structural breaks, DOLS.<br><br><strong>JEL:</strong> C33, O34, F23.</p> Chun Ping Chang Copyright (c) 2022 Panoeconomicus 2021-05-25 2021-05-25 69 4 509 525 10.2298/PAN160413006C The Finance-Growth Nexus in the Age of Financialisation: An Empirical Reassessment for the European Union Countries http://panoeconomicus.org/index.php/jorunal/article/view/649 <p>This paper draws an empirical reassessment of the finance-growth nexus by performing a panel data econometric analysis for all 28 European Union countries over 27 years from 1990 to 2016. Since the mid-1980s, the financial system has experienced a strong liberalisation and deregulation by preventing its beneficial effects on the real economy. This phenomenon, typically called financialisation, points to a negative view of finance and contradicts the well-entrenched hypothesis on the finance-growth nexus. We estimate both linear and non-linear growth models by incorporating seven proxies of finance (money supply, domestic credit, financial value added, short-term interest rate, long-term interest rate, stock market volume traded and stock market capitalisation) and five control variables (the lagged growth rate of the real per capita gross domestic product, the inflation rate, the general government consumption, the degree of trade openness and the education level of the population). Our results show that finance has impaired economic growth in the EU countries, both in the pre-crisis period and in the crisis and post-crisis periods. The enormous growth of domestic credit and of the financial value added have been restraining the economic growth of the EU countries since 1990 and particularly up until the Great Recession. This implies the need to reduce the prominence of finance, i.e. so-called de-financialisation, in the coming years in order to avoid the potential new ‘secular stagnation’ in the current age of financialisation. <br><br><strong>Keywords:</strong> Finance, Economic growth, European Union, Panel data, Least-Squares Dummy Variable Bias-Corrected Estimator. <br><br><strong>JEL:</strong> C33, E44, 016, O47.</p> Ricardo Pereira Barradas Copyright (c) 2022 Panoeconomicus 2022-07-15 2022-07-15 69 4 527 554 10.2298/PAN180927014B The Military Expenditures and Economic Growth Nexus: Panel Bootstrap Granger Causality Evidence from NATO Countries http://panoeconomicus.org/index.php/jorunal/article/view/1403 <p>The purpose of this study is to examine the causal linkage between military expenditures and economic growth in 27 North Atlantic Treaty Organization (NATO) member countries. Different periods are studied due to the unavailability of data for the common period for all countries. Both the symmetric and the asymmetric causality between military expenditures and economic growth are investigated under cross-sectional dependence and panel heterogeneity by using the bootstrap panel Granger causality testing approach. The results indicate that there is both symmetric and asymmetric Granger- causality between military expenditures and economic growth, which vary from one country to another. The robust empirical findings support the military expenditures and economic growth nexus in 12 of the 27 NATO member countries. Moreover, the findings show that more empirical evidence between military expenditures and economic growth can be obtained when the asymmetric causality is considered, in addition to the symmetric causality.&nbsp;<br><br><strong>Keywords:</strong> Defense economics, Military expenditures, Economic growth, Asymmetric bootstrap Granger causality.&nbsp;<br><br><strong>JEL:</strong> C33, H50, H56, 047.</p> Mehmet Hanefi Topal Mustafa Unver Salih Türedi Copyright (c) 2022 Panoeconomicus 2022-07-15 2022-07-15 69 4 555 578 10.2298/PAN170914002T Joseph A. Schumpeter and Schumpeterian Paradigm on the Dynamics of Capitalism: Entrepreneur, Innovation, Growth, and Trade http://panoeconomicus.org/index.php/jorunal/article/view/1264 <p>Joseph A. Schumpeter suggested two models about the evolution process of capitalist societies. The article aims to specify the essential roles of these models in discussions about the modern firm theories and the development of integrated economic growth and international trade theory. In this context, this article aims to evaluate these developments and point out their role in bridging the gap between microeconomics and macroeconomics. The Schumpeterian framework, as a bridge, provides us a very productive base to discuss the connections among entrepreneurs, firms, innovation, economic growth, and international trade.&nbsp;<br><br><strong>Keywords:</strong> Joseph A. Schumpeter, Schumpeterian growth and trade models, Capabilities/Evolutionary approach in firm theory, Entrepreneurship and technological innovation.&nbsp;<br><br><strong>JEL</strong>: B310, E140, D21, O310.</p> <p><br><br></p> Turan Yay Gülsün Gürkan Yay Copyright (c) 2022 Panoeconomicus 2022-07-15 2022-07-15 69 4 579 607 10.2298/PAN200913001Y Link between Tangible Investment Rate and Labour Productivity in the European Manufacturing Industry http://panoeconomicus.org/index.php/jorunal/article/view/1557 <p>This paper analyses the link between the tangible investment rate and apparent labour productivity in the European manufacturing industry. The research results show a negative and opposite relation between apparent labour productivity and investment rate, that is, changes in apparent labour productivity cause changes in investment in tangible assets but not vice versa. The findings do not show any significant differences among European countries when the relation between apparent labour productivity and investment rate is analysed. However, when analysing the gross investment in tangible goods, as well as in machinery and equipment, period effects are observed. A crisis and economic slowdown reduce investment in tangible capital. Meanwhile, the growth of the economy spurs more investment. The negative correlation between apparent labour productivity and investment rate indicates that investment in tangible assets is ineffective. An analysis on individual countries is required in order to reach more nuanced conclusions.&nbsp;<br><br><strong>Keywords:</strong>&nbsp;Labour productivity, Investment rate, Tangible investment, Manufacturing industry.&nbsp;<br><br><strong>JEL:</strong> D24, D92, J24, L60.</p> Alina Stundziene Asta Baliute Copyright (c) 2022 Panoeconomicus 2022-07-15 2022-07-15 69 4 609 633 10.2298/PAN171208012S Impact of Turkish Policy Reform on Labor Force Status of Disabled Males: A Difference-in-Difference Analysis http://panoeconomicus.org/index.php/jorunal/article/view/1472 <p>This paper aims to study the effect of a Turkish policy reform enacted in 2008 that requires firms to hire disabled applicants. Our attention is only on males to avoid complications arising from gender differences in disability and labor force participation. The data is from the Turkey Health Survey (THS) of the Turkish Statistical Institute (TurkStat) for the years 2008 and 2012. We define “disability” as an impairment of long-term health conditions that lasts more than six months and that restricts the individual in daily activities. We use difference-in-difference (DD) estimation, in which the DD estimator is the difference between disabled and non-disabled individuals in the difference in labor force participation before and after the new policy. The results suggest an insignificant effect of the treatment on the treated, implying that the policy reform does not create any incentive for disabled males to participate in the labor force.&nbsp;<br><br><strong>Keywords:</strong> Disability, Labor force participation, Difference-in-difference.&nbsp;<br><br><strong>JEL:</strong> I12, J21, J24, C31, C34.</p> Burcu Düzgün Öncel Deniz Karaoğlan Copyright (c) 2022 Panoeconomicus 2022-07-15 2022-07-15 69 4 635 650 10.2298/PAN170208005D