This paper investigates the impact of government size on economic growth in selected economies of the MENA countries by using a non-linear panel data approach over the period 1990-2011. The estimation results of Panel Smooth Threshold Regression model show that when the level of government consumption is very large, the positive impact of labor force on growth is intensified. On the other hand,...

This paper studies the existence for a set of countries of an inflation threshold above which its effect on economic growth is negative, considering the speed of transition from one inflation regime to the other. Using a panel data set of above 120 countries for the period after the Second World War, we apply a panel smooth transition regression (PSTR) model with fixed effects. The estimated th...

we apply the two-sector production function developed by ram (1986) to estimate the threshold regression model for iran, concerning the effect of government size on economic growth. three government size indicators are used to find out the different threshold points. the results show a non-linear relationship of the armey curve in iran, in which the threshold effects corresponding to total gove...

one of the economic problems in the developing countries is the debt problem. external debt occurs in the developing countries due to the elimination of the restrictions on the savings gap, the foreign exchange gap, and the fiscal gap in order to form the capital to accelerate the economic growth (karakoy et al., 2012, p. 491). in contrast, borrowing and rising the external debt could be little...

the main challenge of developing countries, is achieving growth and development. review of economic growth literature shows that the quality of institutions and social infrastructure are important factors that influence the economic growth and development. also many analysts believe that between institutional factors, the rule of law is one of the most elements for appropriate system for invest...

This paper studies the cost efficiency of bank in a partial universal banking system (PUBS), Taiwan. Instead of assuming one common technology in the bank cost function, two technologies are assumed to be imbedded in the cost function. We use fee revenues as threshold to divide the banks into two technologies. A bank whose fee revenues exceeding the threshold is designated as universal bank tec...

This paper proposes a new approach to estimate panel data models with group specific parameters when group membership is not known. We first create a set of “pseudo” threshold variables based on time series estimation of the individual specific parameters. We then use these variables to stratify individuals. The problem of parameter heterogeneity is turned into estimation of a panel threshold m...

The aim of this paper is to assess the sign and magnitude of the nonlinear effects of main socio-economic variables as well as the financial development index(measured by private credit to GDP ratio) on the environmental pollution. Specifically, the interaction of the socio-economic variables with financial development as a threshold variable in affecting CO2 emission is studied. In this respec...

this study investigates the effects of the government effectiveness and financial development indices on economic growth in d-8 countries over the period 1996-2012, by applying the panel smooth transition regression (pstr) model. for this purpose, we use non-linear least squares (nls) method for estimation of model. the estimation results reject the linearity hypothesis, and estimate two regime...