A Panel Threshold Model to Capture the Nonlinear Nexus between Public Policy and Entrepreneurial Activities in EU Countries

Lobonţ, Oana-Ramona; Nicolescu, Ana-Cristina; Costea, Florin; Li, Zheng Zheng; Țăran, Alexandra-Mădălina; Davidescu, Adriana AnaMaria

doi:10.3390/math10081265

Cited by 10 publications

(7 citation statements)

References 38 publications

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“…Therefore, the formula of the single threshold regression model can be organized as follows (Lobont et al ( 2022 ): are the estimated coefficients corresponding to the control variables .…”

Section: Methodsmentioning

confidence: 99%

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Economic Growth and Extreme Poverty in Sub-Saharan African Countries: Non-Linearity and Governance Threshold Effect

2023

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Over the last few decades, many economies in sub-Saharan Africa have experienced much faster economic growth than other parts of the world. However, many of these economies have not experienced significant poverty reduction. Several factors such as the quality of governance may limit the expected effects of economic growth on poverty. This paper examines the triangular relationship between extreme poverty, governance quality, and economic growth for the sub-Saharan African countries over the period 2010–2019. Compared to the work carried out until now, the novelty of this research lies in using the Panel Threshold Regression (PTR) and Panel Smooth Transition Regression (PSTR) models to determine the optimal level of governance index, which once attained, will make extreme poverty decrease with economic growth and governance quality. We found that the nexus between these three variables is nonlinear. Besides, results show that there exists a statistically negative relationship between governance and extreme poverty above the threshold level of 0.314 for the Global Governance Index (GGI) and 66.9 for the Ibrahim Index of African Governance (IIAG), above which governance quality decreases extreme poverty. The results showed that the economic growth would begin to reduce extreme poverty once governance reaches a threshold level of 0.367 for GGI and 63.2 for IIAG. Better performance of governance also appears to improve economic growth and reduces poverty.

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“…Therefore, the formula of the single threshold regression model can be organized as follows (Lobont et al ( 2022 ): are the estimated coefficients corresponding to the control variables .…”

Section: Methodsmentioning

confidence: 99%

“…In another form, Eq. (1) equals to: Therefore, the formula of the single threshold regression model can be organized as follows (Lobont et al (2022): α 1 , α 2 , α 3 , α 4 , α 5 , α 6 are the estimated coefficients corresponding to the control vari-ablesUR it , GI it , FDI it , DI it , NODAR it , AVA it .…”

Section: Panel Threshold Regression Model (Ptr)mentioning

confidence: 99%

Economic Growth and Extreme Poverty in Sub-Saharan African Countries: Non-Linearity and Governance Threshold Effect

2023

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“…Therefore, the formula of the single threshold regression model can be organized as follows (Lobont et al, 2022):

\begin{matrix} {italicGDP}_{italicit} = \{\begin{matrix} μ_{i} + β_{1}^{'} {italicFDI}_{italicit} + α_{i} x_{italicit} + ε_{it} if {italicgovernance}_{italicit} \leq γ \\ μ_{i} + β_{2}^{'} {italicFDI}_{italicit} + α_{i} x_{italicit} + ε_{italicit} if {italicgovernance}_{italicit} > γ \end{matrix} \\ {normalα}_{normali} = {normalα}_{1}, {normalα}_{2}, {normalα}_{3} {normalx}_{it} = {INF}_{it}, {TOE}_{it}, {DI}_{it} \\ {GDP}_{it}, {FDI}_{it}, {normalx}_{it}, {GGI}_{it} : 1 \leq i \leq N and 1 \leq t \leq T} \end{matrix}

α_{1}, α_{2}, α_{3}

are the estimated coefficients corresponding to the control variables

{INF}_{it}, {TOE}_{it}, and {DI}_{it}

.…”

Section: Empirical Methodologymentioning

confidence: 99%

Estimating relationships among foreign direct investment, governance quality, and economic growth in developing countries using the threshold auto‐regressive model

Saidi

Ochi

2023

Regional Science Policy & Practice

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This study examines the triangular relationship between foreign direct investment (FDI), economic growth, and governance quality for 102 developing countries over the period 2000-2018. Compared with the work carried out until now, the novelty of this research lies in using the panel threshold regression (PTR) model to determine the optimal level of governance quality, which, once attained, will make economic growth increase with FDI inflows. We found that the nexus between these three variables is nonlinear.Besides, results show that there is no significant relationship between FDI and economic growth below the threshold level of À1.20 for global governance index (GGI). The results showed that the positive and significant effect of FDI inflows on economic growth begins to manifest once the GGI exceeds this threshold of À1.20. Several policies are proposed and discussed.

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“…Hodžić et al [33] (p. 159) appreciate that the maturity of e-government "significantly contributes to enhancing government effectiveness and efficiency in the EU-28". Alghamadi et al [34] analyse both user access and human resource among other telecommunication factors that can influence the efficiency of government administration.…”

Section: Literature Reviewmentioning

confidence: 99%

E-Government Development—A Key Factor in Government Administration Effectiveness in the European Union

et al. 2023

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The phenomenon of digitisation of the public sector is an irreversible process that affects both the way public institutions are organised and the communication relationships between people and institutions. The COVID-19 pandemic represented a challenge and a strong impetus in accelerating the digitisation process of public administration at the global level such that it is currently difficult to make a clear distinction between governance and e-governance. The purpose of this research is to investigate the impact of the intensification of the digitisation process of public services in increasing the efficiency of governments at the level of the member states of the European Union, based on a cluster analysis. A robust least squares regression method was used to estimate the effects of the three dimensions of the e-government development index (EGDI) on government effectiveness. The results of the analysis highlighted the fact that the skills of the population in using online services determine the increase in a double percentage of government efficiency in intensively digitised states compared to states where the digitisation of public services is less developed. The development of the telecommunications infrastructure also has a significant positive impact on the efficiency of the government. However, online services offered by public authorities have proven to negatively influence government efficiency in both clusters.

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A Panel Threshold Model to Capture the Nonlinear Nexus between Public Policy and Entrepreneurial Activities in EU Countries

Cited by 10 publications

References 38 publications

Economic Growth and Extreme Poverty in Sub-Saharan African Countries: Non-Linearity and Governance Threshold Effect

Economic Growth and Extreme Poverty in Sub-Saharan African Countries: Non-Linearity and Governance Threshold Effect

Estimating relationships among foreign direct investment, governance quality, and economic growth in developing countries using the threshold auto‐regressive model

E-Government Development—A Key Factor in Government Administration Effectiveness in the European Union

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