Prague Economic Papers, 2023 (roč. 32), číslo 3
Analysing Impact of Economic Crises on Sector Profits with a New Approach
İsmail Cakmak, Selcen Öztürk
Prague Economic Papers 2023, 32(3):225-245 | DOI: 10.18267/j.pep.827 
The manufacturing sector has been regarded as a key factor in the history of economic devel-opment and growth. However, economic fluctuations affect manufacturing seriously. This study examines the impact of the 2008 global economic crisis on Turkish manufacturing sector profit-ability. This paper uses micro-econometric difference in differences methods in conjunction with the macroeconomic forecasting method to investigate how profit levels in the Turkish manufacturing industry are affected by the crisis. The results indicate that the profit levels changed significantly after the crisis with a one-year lag and actual profits exceeded the estimated...
How Tax Wedge of Low and Upper-income Households Affects Income Distribution: Findings from OECD Countries
Emin Efecan Aktaş
Prague Economic Papers 2023, 32(3):246-272 | DOI: 10.18267/j.pep.831
The tax wedge mainly quantifies the extent to which tax on labour income enervates employment and it reflects the total labour costs. It is commonly defined as the ratio between the amount of taxes paid by the worker and the related total labour costs for the employer. As such, the tax wedge affects both the labour force (unemployment) by reflecting the burden of the employer and indirectly the household disposable income. It is conferred that the alteration caused by the tax wedge on income distribution has been analysed with a small number of empirical studies. Based on the hypothesis that the tax wedge may affect income distribution from different...
Evaluation of Relative R&D-led Growth with Specific Reference to Heterogeneous Time-varying R&D Decision: A Novel Approach
Ömer Tuğsal Doruk
Prague Economic Papers 2023, 32(3):273-291 | DOI: 10.18267/j.pep.832
The relationship between R&D expenditures and firm growth is examined for a cross-country firm-level dataset for the EU countries in the period from 1989 to 2019. A panel dynamic average treatment effect is estimated using a panel time-varying dynamic difference-in-differences model. The methodology can be counted as novel. The results show a positive and significant relationship between R&D and firm growth within the first five years of R&D investment in the 22 EU countries, over 700 firms and 30 years. The main novelty of the present study comes from examining the time-varying effect of R&D expenditures on firm growth for manufacturing...
Green Technology Innovation and High-Quality Economic Development: Spatial Spillover Effect
Shaorui Xu, Yang Chen, Oleksii Lyulyov, Tetyana Pimonenko
Prague Economic Papers 2023, 32(3):292-319 | DOI: 10.18267/j.pep.833
Against the background of green development, green technology innovation is an important driving force for high-quality economic development. Countries are facing energy shortages, environmental deterioration and other issues that limit high-quality economic development by extending green technology innovation. The study aims to investigate the impact of green technology innovation and its spillover effect on high-quality economic development. For this purpose, the study applies panel data on 30 provinces in China from 2010 to 2019 to construct a spatial Durbin model. The study finds that green technology innovation in the region plays a positive role...
Labour Market Flexibility and Economic Growth in Africa
Joseph Eshun, Emmanuel Acheampong, King David Kweku Botchway, Morié Guy-Roland N'Drin, Divine Adzove
Prague Economic Papers 2023, 32(3):320-349 | DOI: 10.18267/j.pep.828
Africa is endowed with both natural resources and a young growing workforce. In light of this, it is obvious that regulations on labour markets will have significant impacts on economic growth, especially through effects on employment and productivity. This study provides information on labour market regulations (labour market flexibility) and their impacts on economic growth in Africa. In particular, this study examines the impact of labour market flexibility (regulations) on economic growth (real GDP per capita growth) relying on the Driscoll-Kraay fixed-effects estimator and the two-step system generalized method of moments (GMM) estimation techniques...