Archive for December, 2018

THE MACROECONOMIC IMPACT OF REGIONAL MINIMUM WAGEs: A CROSS-PROVINCE DATA EVIDENCE FROM INDONESIA

Khairul AMRI

Ph.D Student in Economic Science, Faculty of Economic and Business Syiah Kuala University Banda Aceh, Indonesia, Lecture in Faculty of Islamic Economics and Business, State Islamic University Ar-Raniry, Banda Aceh Indonesia

khairul.amri@ar-raniry.ac.id

Abstract

The main purpose of our study is to determine the causality relationship between economic growth, regional minimum wages (RMWs), unemployment rate and labor force participation rate (LFP). Using cross-section data set of 27 provinces from Indonesia for the period of 2003-2015, data analyzed using panel co-integration test, panel vector error correction model, and Granger causality test. Panel co-integration test indicates that there is a long-run relationship between the variables. In the long-run, LFP positively related to the economic growth, and negatively related to RMWs. The unemployment is positively related to both the economic growth and RMWs. In the short-run, RMWS has a significant and positive effect on economic growth. The unemployment and LFP have a negative and significant effect on RMWs. LFP has a negative and significant effect on unemployment and RMWs has a positive and significant effect on LFP. Furthermore, economic growth has a negative and significant effect on LFP. The result of Granger causality test points out that there is a bidirectional causality relationship between economic growth and RMWs and between RMWs and LFP. In addition, unemployment rate causes RMWs, and LFP causes unemployment.

Keywords: Economic growth, regional minimum wages, labor force participation, unemployment and panel vector error correction model

JEL classification: J31, O4, R23
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ILLEGAL CONSTRUCTIONS IN THE POST-MEMORANDUM GREECE Changes and constants in a chronic phenomenon

Nikolaos YOYAS

Architect NTUA, Msc Environmental Design, Urban Planning PHD Candidate

01@yio.gr

Abstract

The ¨stirring¨ of the problem of illegal constructions in Greece, during the last decade, that followed the issue of five consecutive laws regarding their integration in the country΄s official urban planning in the period 2009-2017, has led to a short-lived race of declaring and legitimizing illegal, constructions on behalf of the hundreds of thousands of popular owners. This institutional reform becomes, increasingly, significant in combination with the contemporary fiscal reform and the relevant tax burdening of realty owners. The timeless popular investment shelter of building ownership, for the first time after WWII, loses its immunity and becomes an unbearable tax weight, transforming popular illegal constructions into the national tool for transforming the country΄s real-estate map. Our ability to translate the outcome of this ¨crisis¨, through our route through all the past time, will define the quality of life in our new urban environment, but most important, our own standard of living and our future.

Keywords: Illegal constructions, urban planning, economic crisis

JEL classification: R0, R5
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INVESTMENT IN INNOVATION AND EDUCATION: AN EFFICIENCY BENCHMARKING ANALYSIS IN EUROPE

Aikaterini KOKKINOU

Higher Hellenic Military Academy

aikaterinikokkinou@gmail.com

George KORRES

Department of Geography, University of the Aegean

gkorres@geo.aegean.gr

Panagiota DIONYSOPOULOU

Director of General Directorate of Tertiary Education, Ministry of Education, Greece

yoldi63@gmail.com

Abstract

As technical efficiency enhancement becomes an increasingly important issue within Europe and worldwide, policy planning should draw attention towards a wide range of production ideas, component technologies and complementary socio-economic capabilities. Within this framework, it is rather difficult for any single economy to incorporate and take advantage of the relevant technological advances in economy, as well as the underlying conditions in innovation and education investments. This means that the actions of policy planning involve the targeted development of specialized knowledge assets, which are integrated from a wider range of investment areas. This paper analyses, through a benchmarking approach, investment in innovation and education in Europe, creating a spectrum of policy implications.

Keywords: Productive Efficiency, Innovation, Education, Investments

JEL classification: F13, F47, F15, R15
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