European Journal of Government and Economics
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Political business cycle and fiscal discipline in Sub-Saharan Africa
No full textWe tested the Political Business Cycle theory in Sub-Sahara Africa. To provide an empirical explanation for this nexus, this paper used unbalanced panel data from thirty-six (36) Sub-Saharan African countries between 1990 and 2018. The system Generalized Method of Moment (GMM) developed by Arrelano-Bover/Blundell-Bond was employed to analyze the collected data. The results of the system GMM revealed that the fiscal deficit is significantly large in election years and the deficit spending spills into the year after the election, though not as high as in the election year. We could not, however, find a significant effect in the pre-election year. In addition, we found evidence suggesting that though democracy significantly lowers the fiscal deficit, it promotes higher deficit spending in the election year and the year after the election. Hence, the study established the existence of a political business cycle in Sub-Saharan African countries. The study thus recommends that sound economic policies should be put in place to reduce the persistent deficit in SSA so as to maintain sustainable fiscal health, as well as the sustainability of macroeconomics, particularly enhanced industrialization, as the study found that countries' fiscal deficits are lower in more industrialized countries in the region
Liquidity of commercial banks in Portugal and Spain
No full textLiquidity is very important for the functioning of financial markets, especially for the banking sector, because one of the critical aspects in the banking business is precisely the process of transforming short-term funds and placing them in the medium and long term. This paper aims to comprehensively assess the liquidity positions of Portuguese and Spanish commercial banks through different liquidity ratios for the period from 2002 to 2015 and understand whether the liquidity management strategy differs by bank size. To this end, unconsolidated balance sheet data were used, which were obtained from the banks annual reports. The sample includes a significant part of the Portuguese and Spanish banking sector (not only by the number of banks, but also by the representation in banks total assets). The results obtained show that Spain's banks' liquidity indicator has decreased over the last four years. In contrast, bank liquidity indicator in Portugal varied slightly positively during the period 2002-2006 but decreased sharply between 2010 to 2015. Bank liquidity increased slightly during the period of the financial crisis in both countries, namely between from 2007 to 2009. Finally, it is concluded that smaller banks have less fluctuating liquidity management, i.e., large and medium-sized banks show greater variation in bank liquidity in the period under analysis, i.e., they are less liquid
The effect of Euribor on banking profitability: evidence from the Spanish banking system
No full textThis paper studies the relationship between the Euribor rate and the return on average assets (ROAA) of the Spanish banking sector. We use quarterly time series data for the period 1995-2016. Our analysis also controls for bank factors, market concentration, the macroeconomic environment and time effects. The main purpose is to examine how the sector's ROAA varies with the slope of the yield curve. We find evidence of an inverse relationship between the Euribor rate and profitability. We also show that banking profitability is pro-cyclical and is positively related to the stock of performing loans and the national 10-year bond yield
The role of automatic stabilizers in business cycle: the case of indonesia
No full textTThe use of large fiscal stimulus packages to dampen the impact of Covid-19 recently has raised concerns about the effectiveness of the discretionary fiscal policy. This paper aims at analysing the feasibility of automatic fiscal stabilisers to mitigate economic fluctuations in the case of Indonesia. Using the IMF standard model for quarterly data over the period of 2001(1) to 2019(4), we find that the role of automatic fiscal stabilisers is getting greater both in revenue and spending. This implies that the automatic fiscal stabilisers are feasible as the main fiscal policy instrument for economic stability goals in the future. However, given the existing circumstances, Indonesia has to reform economic, regulatory, and institutional ecosystems in adopting the automatic fiscal stabilisers
Natural resource abundance and broad-based financial development nexus in ASEAN countries: accounting for globalization and human capital
No full textSustainable resource consumption is important for the development of the financial system. Besides, an advanced financial system eases the transfer of revenues from production activities and export to productive investments. The influence of natural resource (NR) abundance on financial development (FD) is still an ongoing debate with conflicting results. However, this study applies a novel proxy for FD, which measures the efficiency, accessibility, and depth of the financial market and institutions. Therefore, the current study is a maiden attempt to explore the nexus between FD and NR abundance amidst globalization, human capital, and economic growth in ASEAN economies. Reliable panel econometric techniques, including second-generation unit root tests, Westerlund (2007) cointegration tests, and the Augmented Mean Group (AMG) estimator are employed on the data for the period 1990-2017. The preliminary tests affirm the existence of cross-sectional dependence, unit root, and cointegrating relationship among the variables. The findings from the study reveal that NR abundance reduces FD, while globalization, human capital and economic growth add to FD. A feedback causality exists between NR abundance and FD. Thus, this study argues that more investment in the manufacturing sector will ease the attainment of efficiency in financial sector accessibility and benefits from NR abundance
The financialisation of the fishing industry: Galicia as a case study
No full textSuccessive technical and organizational innovations have modelled the current structure and composition of the fishing industry. The market structure varies considerably between countries and the fish species they catch. There is a generalised global convergence towards an industrial-outsourced model, in which companies occupy a central and basic position in economic strategies. Two predominant key trends are identified: financialisation and the monopolisation of fishing areas. This paper begins with an analysis of the fishing sector from the perspective of the presence of investment funds that hold stakes in companies specialising in a principal region of Europe
The profile of leisure time sports people and their reason for doing sport in Spanish sports facilities
No full textIn Spanish sports habits, there exists a clear increase of the institutionalised sports practice and a distinct trend of leisure and recreational sport. This motivates the current work as it is necessary to go deeply into the knowledge of this practice. The aims proposed are twofold. On the one hand, to perform an analysis of the profile and the characteristics of the behaviour of the users of sports centres and leisure and recreational sportspeople. And, on the other hand, to study the motives of leisure/recreational sports practice. A descriptive quantitative methodology has been followed in this research. The description of the profile of users emerges from the data analysed as well as that they practise sport for exotelic reasons. The results obtained can serve managers to orientate their strategies destined to satisfy the needs of these users
Female leadership in sports clubs
No full textThe objective of this study was to determine the type of leadership applied by the directors of amateur sports clubs. This quantitative, descriptive and cross-sectional study was carried out on a sample of 48 directors of sports clubs in total: 23 (47.91%) belonging to collective sports clubs and 25 (52.08%) to individual sports clubs. The study administered the MLQ-X5 Multifactor Leadership Questionnaire (45 items). The answers are collected on a Likert scale ranging from 0 (never) to 4 (almost always). The results indicated that the directors opt for a transformational leadership style (3.24), preferably followed by the corrective leadership type (3.18) and almost the same level as the developer type (3.17). The study concluded that the collective sports directors opt for the style of transformational leadership by being proactive and promoting the achievement of extraordinary goals
The politics of renewable power in Spain
No full textGovernment support for renewable power in Spain has varied over time. After fostering a boom in the first decade of the 2000s, public support dried up in the early 2010s before making a reappearance in the last several years. This paper details and explains the fluctuating political fortunes of renewable power in Spain. It argues that the recent revival of support for renewable power should no come as no surprise. Rather, it reflects a reassertion of the underlying imperatives that prompted support by governments of different parties in previous years. Nevertheless, the role of government in promoting renewable power is now undergoing a fundamental change, as it shifts from directly subsidizing new generating capacity to removing barriers that might discourage private investment and facilitating the operation of market forces
Varieties of Capitalism and labour market opportunities for the youth: A comparison of attitudes towards skill formation
No full textIn this study, we examine the extent to which socio-economic institutions shape young people’s perceptions of labour market opportunity structures and their employment attitudes (i.e. skills and retraining). Building on the varieties of capitalism approach, we expect young people (aged 18–35) in coordinated market economies (CMEs) with encompassing welfare states to regard firm- and industry-specific skills as more important than their peers in liberal market economies (LMEs). To assess this proposition, we draw on original survey data and compare young people’s employment attitudes in five European countries: the United Kingdom (UK), which represents a typical liberal market economy, and Austria, Denmark, Germany and Switzerland as representatives of coordinated market economies. To what extent do different training regimes in CMEs and LMEs shape individual attitudes towards skill formation? The empirical analysis shows that young people’s attitudes with regard to the specificity of skills and the willingness to undertake retraining differ systematically between CME and LME countries and supports our argument that the specific socio-economic institutions matter