Open Access
Article
SciPap-2110
Is Impact of Government Size on Growth in ASEAN Linear or Non-linear? Monte-Carlo Hierarchical Insights under Keynesian, Neoclassical, and Barro Perspectives
by Thach Nguyen Ngoc
Abstract: Many prior studies on the government-growth nexus have focused on Keynesian (Keynes, 1936) or neoclassical (Lucas, 1990) traditions, while a recent research strand has paid widespread attention to Barro (1990)’s non-linear perspective. Although modern complexity sciences suggest an overall non-linear trend in a complicated, interconnected, globalized world, non-monotonicity is poorly addressed in the applied literature. This work explores both the linear and non-linear effects of government size on economic growth. By employing a hybrid Metropolis-Hastings algorithm within a hierarchical Bayesian approach to a panel of ASEAN countries over 1950-2019, which aids in handling statistical complexities, the results show a negative growth impact of government size. This finding aligns with the neoclassical viewpoint on bureaucratic inefficiencies and the distortionary effects of government intervention in a market economy. Substantial measures are needed to increase public spending efficiency and accountability, focus on productive investments, encourage private sector activities, and implement structural reforms in ASEAN.
Keywords: Monte Carlo Algorithm, Bayesian Hierarchical Approach, Multicollineartity, Reverse Causality, Government-Growth, Negative Linear Effect, Asean
JEL classification: E62, O40
Open Access
Article
SciPap-2071
Determinants of Knowledge Production Function: A Catalyst for Firm-Level Innovation Performance in the EU.
by Emmanuel Ebo Arthur, Bernard Vanicek
Abstract: This study draws on the axioms of the knowledge production function and open innovation to examine the influence of publications and firm collaborations on the innovation of micro and medium-sized firms in the EU. We utilized CIS 2018 data (Eurostat), employing logistic regression methods and doubly robust treatment estimation techniques for the analysis. Our findings indicate that trade and patent publications positively influence product and market innovation. Furthermore, we ascertained that micro- and medium-sized firms in the European region enhance their innovation performance when they engage in consultations with public and private research institutions and universities rather than purchasing licensing and IPRs from these institutions. We observed evidence suggesting that central government funding positively influences the impact of firm collaboration on market method innovation. We conclude by proposing practical implications for policymakers and managers of micro- and medium-sized firms across countries in the EU.
Keywords: Trade Publications, Patent Publications, Intellectual Property Rights, Marketing Method Innovations, Government Funding
JEL classification: H, H5, O31, O32, O34
