“A long-term mortality analysis of subsidized firms in rural areas: an empirical study in the Portuguese Alentejo region”

Studies have demonstrated that public policies to support private firms’ investment have the ability to promote entrepreneurship, but the sustainability of subsidized firms has not often been analysed. This paper aims to examine this dimension specifically through evaluating the mortality of subsidized firms in the long-term. The analysis focuses on a case study of the LEADER+ Programme in the Alentejo region of Portugal. With this purpose, the paper examines the activity status (active or not active) of 154 private, rural, for-profit firms in Alentejo that had received a subsidy to support investment between 2002 and 2008 under the LEADER+ Programme. The methodology is based on binary choice models in order to study the probability of these firms still being active. The explanatory variables used are the following: (1) the characteristics of entrepreneurs and managers’ strategic decisions, (2) firm profile and characteristics, (3) regional economic environment. Data assessment showed that the cumulative mortality rate of firms on 31st December 2013 is over 20 %. Interpretation of the regression model revealed that he probability of firms’ survival increases with higher investment, firm age and regional business concentration, whereas the number of applications made by firms has a negative impact on their survival. So it seems that for subsidized firms the amount of investment is as important as its frequency

from Asian Countries

This paper investigates the interactions between changes in stock prices and monetary policy regimes in four emerging Asian countries-Korea, Malaysia, Singapore, and Thailand-using a Markov regime-switching autoregressive conditional heteroskedasticity (MS-ARCH) model. To connect the stability of monetary policy to stock market volatility, the authors assume that monetary policy and stock price regimes are governed by the same fundamental: the state of the economy. They find that there exists an asymmetric relationship between the volatility of stock prices and the stability of monetary policy regimes. Most of their findings are consistent with real world observations

Testing the validity of quasi PPP hypothesis: Evidence from a recent panel unit root test with structural breaks

In this article we test the validity of quasi Purchasing Power Parity (PPP) hypothesis for 18 Turkish real exchange rate series using a panel unit root test that allows for structural breaks in the level and the trend. Test results based on a long span of data find evidence of the validity of quasi PPP hypothesis for almost all the exchange rate series under study and for the whole of panel as well. © 2011 Taylor and Francis Group, LLC

The macroeconomy and Turkish agricultural trade balance with the EU countries: Panel ARDL analysis

The purpose of this paper is to investigate the factors determining fluctuations in Turkish agricultural trade balance with the EU countries within the context of trade balance theories. For this purpose, we examine both the short and long-run impacts of the real exchange rate, the domestic (foreign) income, and the domestic (foreign) money supply on the agricultural trade balance between Turkey and her fourteen trading partners in the EU. Our study covers the period from 1987q1 to 2005q4, and employs the Pooled Mean Group estimator. The results show that (i) the monetary and real variables have significant effects on the Turkish agricultural trade balance in both the short and long-run and (ii) the J-curve effect is not observable in Turkish agricultural trade with the EU countries. Findings provide some clues to better understanding of the recent dynamics of Turkish agricultural trade balance with the EU countries. © International Economic Society

Testing the validity of quasi PPP hypothesis: Evidence from a recent panel unit root test with structural breaks

In this article we test the validity of quasi Purchasing Power Parity (PPP) hypothesis for 18 Turkish real exchange rate series using a panel unit root test that allows for structural breaks in the level and the trend. Test results based on a long span of data find evidence of the validity of quasi PPP hypothesis for almost all the exchange rate series under study and for the whole of panel as well. © 2011 Taylor and Francis Group, LLC

A PANEL COINTEGRATION STUDY OF THE EFFECT OF R&D EXPENDITURES ON INNOVATION: THE CASE OF BRICS_T COUNTRIES

In academic and intellectual discussions on how to achieve sustainable growth and development in the world, it is stated that it is not easy for countries to gain, develop and maintain competitiveness in the globalization environment and often noted that it will not be possible without Research and Development (R&D) and innovation activities. In this context, this study examines the relationship between R&D expenditures to GDP ratio and global innovation index in the scope of BRICS_T countries (Brazil, Russia, India, China, South Africa, and Turkey). For this, panel cointegration and causality analyses were applied based on data covering the period 2007-2019. First, horizontal cross-sectional dependence between series was analyzed by the LM CD test developed by Pesaran (2004) and LM adj. test whose deviation was corrected by Pesaran et al. (2008). After cointegration coefficients were determined as heterogeneous, 1st and 2nd generation unit root tests were implemented. 1st generation unit root tests Maddala & Wu (1999), Choi (2001), and Im, Pesaran & Shin (2003) were applied; stationarity was tested by CADF test, one of the 2nd generation unit root tests; Westerlund & Edgerton's (2007) LM Bootstrap Panel Cointegration test was utilized for detecting long-run relationship between variables. After long-run coefficient estimations were performed through FMOLS, Dumitrescu & Hurlin (2012) causality test was applied. Consequently, the statistically significant positive effect of R&D on global innovation index GII was determined. The highest effect was in China and Russia. Panel-wide, a 4.3% enhancing effect was determined. In addition, two-way causality was detected between the R&D and GII variables

US versus conventional radiography in the diagnosis of sternal fractures

Purpose: To investigate the value of ultrasonography (US) in the diagnosis of sternal fractures