Economic growth and housing spending within social protection: Correlation and causal study
-
Author(s)Svitlana ZhuchenkoLink to ORCID Index: https://orcid.org/0000-0002-0657-3040
,
Zuzana KubaščikovaLink to ORCID Index: https://orcid.org/0000-0001-6739-1278
,
Anastasiia SamoilikovaLink to ORCID Index: https://orcid.org/0000-0001-8639-5282
,
Tetiana VasylievaLink to ORCID Index: https://orcid.org/0000-0003-0635-7978
,
Iryna D’yakonovaLink to ORCID Index: https://orcid.org/0000-0003-4366-8062
-
DOIhttp://dx.doi.org/10.21511/pmf.12(1).2023.07
-
Article InfoVolume 12 2023, Issue #1, pp. 73-85
- Cited by
- 269 Views
-
44 Downloads
This work is licensed under a
Creative Commons Attribution 4.0 International License
The purpose of this study is to ground the causality, its character, and power between economic growth and housing spending within government social protection to strengthen poverty reduction. The study is conducted on a sample of 27 EU countries for 2012–2021 according to the following indicators: government expenditure on housing within social protection, government expenditure on housing development, and GDP per capita growth. Correlation analysis revealed the relationship between the variables. The paper employed time lags with the most significance based on Pearson and Spearman correlation coefficients depending on normal data (Shapiro-Wilk test). The causal analysis determined which of the studied indicators is the cause and consequence of established dependence based on the results of the Granger test. Calculations are made in STATA software. It is confirmed that government expenditure on housing within social protection influences GDP per capita growth in 14 countries (the highest impact is in Greece and Spain) and government expenditure on housing development – in 17 countries (the biggest influence is in Romania, the Slovak Republic, Ireland, and Lithuania). It is also emphasized that government expenditure on housing development influences economic growth more significantly and with higher strength than government expenditure on housing within social protection. The obtained results can be useful in further research and government decision-making in social and economic policy, particularly regarding the expediency of increasing government spending for affordable housing and its development according to social protection programs, poverty reduction, and inclusive economic growth.
Acknowledgments
The study is funded by the Ministry of Education and Science of Ukraine (No. 0122U000781) and the Vega Agency (No. 1/0638/23).
- Keywords
-
JEL Classification (Paper profile tab)H55, O47, R28
-
References61
-
Tables4
-
Figures2
-
- Figure 1. Cross-country analysis of shares of government expenditure on housing in the spending block of social protection in 2021
- Figure 2. Cross-country analysis of shares of government expenditure on housing development in the spending block of housing and community amenities in 2021
-
- Table 1. Normal data testing based on the Shapiro-Wilk methodology
- Table 2. Pearson/Spearman correlation calculations
- Table 3. Granger test for causality
- Table 4. Determination of unidirectional or bidirectional causality based on Granger test results
-
- Adewole, J. A., Omotayo, V. A., & Ojewande, A. A. (2022). Islamic cooperative societies and the efficiency of financial intermediation in Ife East Local Government, Osun State, Nigeria. Financial Markets, Institutions and Risks, 6(2), 5-15.
- Alekseyenko, L., Tulai, O., Petrushenko, Y., Kuznietsov, A., & Derkash, J. (2021). Affordable housing for internally displaced persons: The priorities for investment and development in Ukraine. Investment Management and Financial Innovations, 18(1), 101-113.
- Antoniuk, D. S., Vakaliuk, T. A., Didkivskyi, V. V., Vizghalov, O. Y., Oliinyk, O. V., & Yanchuk, V. M. (2022). Using a business simulator with elements of machine learning to develop personal finance management skills. CEUR Workshop Proceedings, 3083, 59-70.
- Awojobi, O. N. (2022). Cash transfer programmes for reducing poverty and vulnerabilities: Effects on children’s health in Sub-Saharan Africa and Latin America. SocioEconomic Challenges, 6(1), 5-23.
- Baum, C. F., Hurn, S., & Otero, J. (2022). Testing for time-varying Granger causality. The Stata Journal, 22(2), 355-378.
- Bilan, Y., Tiutiunyk, I., Lyeonov, S., & Vasylieva, T. (2020). Shadow economy and economic development: A panel cointegration and causality analysis. International Journal of Economic Policy in Emerging Economies, 13(2), 173-193.
- Chen, Q., Chi, Q., Chen, Y., Lyulyov, O., & Pimonenko, T. (2022). Does population aging impact China’s economic growth? International Journal of Environmental Research and Public Health, 19(19), 12171.
- Chugunov, I., & Nasibova, O. (2021). Public funding of social protection: Impact on social indicators in Eurozone countries. Investment Management and Financial Innovations, 18(2), 181-192.
- Doling, J., Vandenberg, P., & Tolentino, J. (2013). Housing and housing finance – A review of the links to economic development and poverty reduction (ADB Economics Working Paper Series No. 362). Asian Development Bank.
- Egan, P., & Bergin, A. (2023). The impact of government spending on Ireland’s housing and residential market – Targeted vs economy-wide stimulus. Journal of Policy Modeling.
- European Union. (n.d.). EU country profiles.
- Eurostat. (2023). Housing development, percentage of total (GF0601). General government expenditure by function (COFOG).
- Granger, C. W. J. (1969). Investigating causal relations by econometric models and cross-spectral methods. Econometrica, 37(3), 424-438.
- Hakhverdyan, D., & Shahinyan, M. (2022). Competitiveness, innovation and productivity of the country. Marketing and Management of Innovations, 1, 108-123.
- Hakobyan, N., & Khachatryan, A. (2022). Post-war anomie in the field of management leadership and anomie overcoming models. Business Ethics and Leadership, 6(2), 94-102.
- Hakobyan, N., Dabaghyan, A., & Khachatryan, A. (2022). Strategies of post-war anomie’s overcoming in the fields of social interactions and business. Business Ethics and Leadership, 6(3), 105-112.
- Hasnul, A. G. (2015). The effects of government expenditure on economic growth: The case of Malaysia (MPRA Paper No. 71254). University Library of Munich, Germany.
- Ianchuk, S., Garafonova, O., Panimash, Yu., & Pawliszczy, D. (2021). Marketing, management, and financial providing of affordable housing. Marketing and Management of Innovations, 2, 213-230.
- Ievdokymov, V., Lehenchuk, S., Zakharov, D., Andrusiv, U., Usatenko, O., & Kovalenko, L. (2020). Social capital measurement based on “The value explorer” method. Management Science Letters, 10(6), 1161-1168.
- Kostenko, A., Kozyntseva, T., Opanasiuk, V., Kubatko, O., & Kupenko, O. (2022). Social resilience management of Ukrainian territorial communities during the Covid-19 pandemic. Problems and Perspectives in Management, 20(3), 1-11.
- Kozmenko, S. М., Korneyev, M. V., & Makedon, V. V. (2014). Financialisation of economy and its influence on the indicators of countries’ socioeconomic development. Actual Problems of Economics, 161(11), 290-298. (In Ukrainian).
- Kozmenko, S., & Korneev, M. (2014). Periodization of financialization process of economics: Domestic and foreign contexts. Economic Annals-XXI, 144(9-10), 73-76.
- Kumar, T. (2021). The housing quality, income, and human capital effects of subsidized homes in urban India. Journal of Development Economics, 153, 102738.
- Kunovac, D., & Zilic, I. (2022). The effect of housing loan subsidies on affordability: Evidence from Croatia. Journal of Housing Economics, 55, 101808.
- Kutlák, J. (2021). Individualism and self-reliance of Generations Y and Z and their impact on working environment: An empirical study across 5 European countries. Problems and Perspectives in Management, 19(1), 39-52.
- Kuzior, A., Grebski, W., Kwilinski, A., Krawczyk, D., & Grebski, M. E. (2022). Revitalization of post-industrial facilities in economic and socio-cultural perspectives – A comparative study between Poland and the USA. Sustainability, 14(17), 11011.
- Kuzior, A., Ober, J., & Karwot, J. (2021). Stakeholder expectation of corporate social responsibility practices: A case study of Pwik Rybnik, Poland. Energies, 14(11), 3337.
- Li, S. (2018). Study on the impact of local public expenditure on housing price – An empirical analysis based on provincial panel data. Modern Economy, 9(2), 247-262.
- Libertun de Duren, N., & Osorio, R. (2020). The effect of public expenditure on the housing deficit in Peru at the municipal level. Housing Policy Debate, 30(5), 718-740.
- Lyeonov, S., Bilan, S., Yarovenko, H., Ostasz, G., & Kolotilina, O. (2021). Country’s health profile: Social, economic, behavioral and healthcare determinants. Economics & Sociology, 14(3), 322-340.
- Lyeonov, S., Tiutiunyk, I., Vasekova, M., Dziubenko, O., & Samchyk, M. (2022). Tax, investment, institutional and social channels of economic shadowing: Challenges for macro-financial stability and good governance. Public and Municipal Finance, 11(1), 128-141.
- Lyulyov, O., Lyeonov, S., Tiutiunyk, I., & Podgórska, J. (2021). The impact of tax gap on macroeconomic stability: Assessment using panel VEC approach. Journal of International Studies, 14(1), 139-152.
- Makole, K. R., Ntshangase, B. A., Maringa, M. S., & Msosa, S. K. (2022). Can a basic income grant improve the quality of life for the poor in South Africa: An analytical review. Business Ethics and Leadership, 6(3), 57-67.
- Marica, S., & Piras, R. (2018). The relationship between government spending and growth: A survey. Rivista Internazionale Di Scienze Sociali, 126(2), 123-152.
- Maris, M. (2022). Management of competitiveness in the EU Member States: The main strengths and weaknesses. Marketing and Management of Innovations, 2, 110-120.
- Molidya, A., & Fanggidae, R. E. (2020). Government subsidy optimization in the property sector (housing) in the middle of the COVID-19 pandemic. Proceedings of the 5th International Conference on Tourism, Economics, Accounting, Management and Social Science (TEAMS 2020). Advances in Economics, Business and Management Research (pp. 440-447).
- Musaba, E. C., Chilonda, P., & Matchaya, G. (2013). Impact of government sectoral expenditure on economic growth in Malawi, 1980–2007. Journal of Economics and Sustainable Development, 4(2), 71-78.
- Ovcharova, N., & Grabowska, M. (2022). Implementation of public-private partnership in the healthcare management system. Health Economics and Management Review, 3(1), 86-95.
- Pakhnenko, O., Brychko, M., & Shalda, A. (2022). Financial support of communities during the Covid-19 pandemic. Financial Markets, Institutions and Risks, 6(3), 83-92.
- Pearson, K. (1896). Mathematical contributions to the theory of evolution – III. Regression, heredity, and panmixia. Philosophical Transactions of the Royal Society of London, Series A, 187, 253-318.
- Poku, K., Opoku, E., & Ennin, P. A. (2022). The influence of government expenditure on economic growth in Ghana: An Ardl approach. Cogent Economics & Finance, 10(1), 2160036.
- Rosokhata, A., Jasnikowski, A., Kropyva, V., & Deryzemlia, M. (2022). Financial market trends as a part of regional development: Manifestations of behavioral reactions and impulses. Financial Markets, Institutions and Risks, 6(2), 112-121.
- Rossi, B., & Wang, Y. (2019). Vector autoregressive-based Granger causality test in the presence of instabilities. The Stata Journal, 19(4), 883-899.
- Salisu, P. O. (2022). Unemployment, poverty and governance questions in Nigeria: Human capital development and partnership approach options. SocioEconomic Challenges, 6(2), 127-137.
- Shapiro, S. S., & Francia, R. S. (1972). An approximate analysis of variance test for normality. Journal of the American Statistical Association, 67(337), 215-216.
- Shapiro, S. S., & Wilk, M. B. (1965). An analysis of variance test for normality (complete samples). Biometrika, 52(3/4), 591-611.
- Sheliemina, N. (2023). Interrelationship between indexes of the population medical care quality and macroeconomic efficiency. Health Economics and Management Review, 4(1), 47-59.
- Shkolnyk, I., Ladyka, Y., Orlov, V., Aldiwani, K., & Kozmenko, Y. (2021). Balancing state budget expenditures: A case of Ukraine using the simplex method. Public and Municipal Finance, 10(1), 34-46.
- Spearman, C. E. (1904). The proof and measurement of association between two things. The American Journal of Psychology, 15(1), 72-101.
- Sriningsih, S., Suriadi, I., & Fatimah, S. (2023). Government expenditure according to functions and economic growth in Indonesia. East Asian Journal of Multidisciplinary Research (EAJMR), 2(5), 1933-1956.
- Stata. (n.d.). Pairwise Granger causality tests after var or svar.
- Stratan, A., Gutium, T., & Șavga, L. (2022). Effects of the non-observed economy on economic security in the Republic of Moldova. Proceedings of the 2nd International conference Interdisciplinarity and Cooperation in Cross-Border Research. Chisinau, Moldova.
- Tahat, I. (2023). The sensitivities of Jordan housing demand to macroeconomic factors: Demand supply analysis model application. SocioEconomic Challenges, 7(1), 65-74.
- Tiutiunyk, I. V., Zolkover, A. O., Lyeonov, S. V., & Ryabushka, L. B. (2022). The impact of economic shadowing on social development: Challenges for macroeconomic stability. Naukovyi Visnyk Natsionalnoho Hirnychoho Universytetu, 1, 183-191.
- Tu, Y., Kubatko, O., Piven, V., Kovalov, B., & Kharchenko, M. (2023). Promotion of sustainable development in the EU: Social and economic drivers. Sustainability, 15(9), 7503.
- Vasilyeva, T. A., Leonov, S. V., & Lunyakov, O. V. (2013). Analysis of internal and external imbalances in the financial sector of Ukraine’s economy. Actual Problems of Economics, 150(12), 176-184.
- Voznyak, H., Mulska, O., Druhov, O., Patytska, K., & Sorokovyi, D. (2023a). Adaptation of internally displaced persons in host communities under conditions of war in Ukraine: The role of local governments. Problems and Perspectives in Management, 21(2), 323-335.
- Voznyak, H., Mulska, O., Druhov, O., Patytska, K., & Tymechko, I. (2023b). Internal migration during the war in Ukraine: Recent challenges and problems. Problems and Perspectives in Management, 21(1), 312-325.
- Vysochyna, A., Molotok, I., Babenko, V., Merezhko, V., Holynska, O., & Rud, I. (2022). Impact of municipal financial resilience on sustainable economic development: Case of Ukraine. Review of Economics and Finance, 20, 662-668.
- World Bank. (n.d.). GDP per capita growth (annual %).
- Zhang, L., Chen, Y., Lyulyov, O., & Pimonenko, T. (2022). Forecasting the effect of migrants’ remittances on household expenditure: COVID-19 impact. Sustainability, 14(7), 4361.
-
Impact on poverty and income inequality in Malaysia’s economic growth
Rabiul Islam ,
Ahmad Bashawir Abdul Ghani ,
Irwanshah Zainal Abidin ,
Jeya Malar Rayaiappan
doi: http://dx.doi.org/10.21511/ppm.15(1).2017.05
Problems and Perspectives in Management Volume 15, 2017 Issue #1 pp. 55-62 Views: 11272 Downloads: 5174 TO CITE АНОТАЦІЯPoverty and income inequality are extreme issues that still exist in Malaysia. Any rise in poverty and income inequality definitely affect economic growth. There are many great efforts taken by the government of Malaysia to eradicate poverty and to reduce the gap of income inequality which occurs since 1970’s. The incidence of poverty and income inequality is higher in rural areas compared to urban areas. This paper is mainly to study the level of poverty and income inequality in Malaysia together with government intervention to develop Malaysia’s economic growth. The research is focused among the working people at Ipoh, Perak. In this paper, questionnaire forms are being distributed to get information regarding the issue of poverty and income inequality. It also looks into the strategies taken by the government of Malaysia to eradicate poverty and income inequality. Few recommendations are given in terms of education policy, financial aid and assistance from government and non-government organization (NGO) to upgrade the standard and quality of living among the poor and lower-income group of people.
-
The nexus between foreign direct investment and environmental sustainability in North Africa
Environmental Economics Volume 9, 2018 Issue #1 pp. 57-68 Views: 2176 Downloads: 442 TO CITE АНОТАЦІЯThis paper provides a study of the relationship between sustainable development and foreign direct investment (FDI) from an empirical point of view in the case of the North African countries during the period from 1985 to 2005. We use the cointegration test, the FMOLS (Fully Modified Ordinary Least Squares) model and the Granger causality test to examine this relationship. According to the empirical results, we confirm the existence of a cointegration relationship between the different series studied in this paper. Based on the cointegration test we can use the error correction model. Also, to test the effect of FDI on sustainable development in the North African countries, we make an estimate by FMOLS method. We found that the foreign direct investment has a positive impact on CO2 emissions. Also, the Granger Causality test confirms the presence of a bidirectional relationship between FDI and CO2 emissions (Carbon dioxide). That is to say, the FDI can cause CO2 emissions and CO2 emissions can cause FDI based on the Granger causality.
-
State financial assistance within Lesotho Maseru’s small, medium and micro enterprises
Public and Municipal Finance Volume 6, 2017 Issue #4 pp. 7-14 Views: 1839 Downloads: 247 TO CITE АНОТАЦІЯSmall, Medium and Micro Enterprises (SMMEs) function in both the micro and macro environments, and are subject to internal and external forces in most economies. The monitoring of the external and internal factors and vital strategies by SMME owners and stakeholders including government and supporting institutions is necessary to attempt a reduction in their failure rates. Literature supports this proposition in the development of SMMEs.
The aim of this study was to analyze the environmental factors that result in a low rate of success and a high failure rate of SMMEs in Maseru the capital city of Lesotho. Primary data for this study was collected through questionnaires which were distributed to a sample of 250 SMMEs owners, however, only 180 respondents completed and returned questionnaires, which were then used for data analysis. The data was analyzed using the Statistical Package for Social Sciences (SPSS21). The findings revealed that there still persists inadequacy in financial assistance and the need to develop a financial strategy by the state. Government key intervention is proposed to enable growth and development in a sector that sustains job creation and poverty reduction through financial strategy. Further research on how the sector establishes support is also proposed.
