Remittances and FDI Effects on Economic Growth: A VECM and GIRFs for the Case of Albania

ABSTRACT

This paper analyzes the effects of remittances and foreign direct investments (FDI) on economic growth, gross fixed capital formation (GFCF), and inflation in Albania through a vector error correction model. The results show that remittances Granger-cause positively economic growth short- and long-run and negatively inflation, while no significant relationship has been established between remittances and GFCF. The findings support that remittances, apart from affecting economic growth, disinflate the Albanian economy. With respect to FDI, there are signs that inflation Granger-causes negatively FDI, while there appears to be no relationship between FDI, economic growth, and capital formation.     

Value Diversity and Regional Economic Development

We investigate the link between culture and regional economic development within European countries. Considering a variety of cultural values, we provide evidence that it is the degree of diversity in these values at the regional level that strongly correlates with economic performance, rather than the prevalence of specific values. In particular, we show that greater value diversity is negatively associated with regional economic performance within countries, which also relates to lower institutional quality and poorer public goods provision. These patterns are robust even when diversity is measured on the basis of values expressed by emigrants residing outside their region of origin.     

Tourism and attitude change: Greek tourists visiting Turkey

This study evaluates attitude change of Greek tourists towards Turkish people inclusive of their political beliefs and institutions, as a result of their visit to Turkey. A sample of 97 Greek first-time travelers to Turkey completed a structured questionnaire measuring attitudes towards Turkey before and after their visit. A control group of 82 Greek citizens who remained in Greece also completed the questionnaire twice. The major results showed that travel to Turkey had a negative impact on Greek tourists perceptions of the host population. This was particularly true concerning such aspects as the quality of life in Turkey, Turkish institutions, and the cultural aspects of its people.     

The Effectiveness of Public Assistance Payments in Reducing Poverty

A bstract . This study investigates the effectiveness of income transfer in reducing poverty in the U.S.A It does so by applying the concepts of set theory to the population segments in poverty and under public assistance. The extent of their intersection versus either subset, i.e. , their conditional probability, as well as the extent of either of the non-intersected segments of the union versus the respective subset, are shown to be reliable indicators of this effectiveness. The last two segments, representing errors of "omission" or of "commission," are analyzed for their uniform patterns by type of residence and race . Probable reasons for their occurrence are discussed, and certain limitations of the used data are examined.     

Payoff-Improving Competition: Games with Negative Externalities

We demonstrate that more intense competition in games with production and negative externalities may be payoff-improving, and therefore welcomed by incumbents. In games that feature equilibria with strategic complements, increased competition may give rise to a new equilibrium where aggregate effort is lower, and the resulting reduced levels of externalities ultimately leaves all players better off. This setting applies to models of Cournot oligopoly, of common pool resources, and contests with endogenous prizes.

     

Interview with Professor Adrian FM Smith

Adrian Smith joined The Alan Turing Institute as Institute Director and Chief Executive in September 2018. In May 2020, he was confirmed as President Elect of the Royal Society. He is also a member of the government's AI Council, which helps boost AI growth in the UK and promote its adoption and ethical use in businesses and organisations across the country. Professor Smith's previous role was Vice-Chancellor of the University of London where he was in post from 2012. He is a past President of the Royal Statistical Society and was elected a Fellow of the Royal Society in 2001 in recognition of his contribution to statistics. In 2003-04 Professor Smith undertook an inquiry into Post-14 Mathematics Education for the UK Secretary of State for Education and Skills and in 2017, on behalf of Her Majesty's Treasury and the Department for Education, published a 16-18 Maths Review. In 2006 he completed a report for the UK Home Secretary on the issue of public trust in Crime Statistics. He received a knighthood in the 2011 New Year Honours list. The following conversation took place at the Alan Turing Institute in London, on July 19 2019.