The dynamic impact among oil dependence volatility, the quality of political institutions, and government spending

This paper empirically examines the direct and indirect effect of the role of democracy, and, in turn, the effect of oil dependence volatility on governmental expenditure in oil exporting countries. To achieve this aim, we apply a panel Vector Auto-Regressive (PVAR) model along with panel impulse response functions from the period 1983 to 2016. The findings show that the quality of political institutions, it is observed that in democratic countries an increase in oil volatility leads to an increase in government expenditure. In contrast, in non-democratic countries, governments respond to oil volatility fluctuating between the positive and negative depending on the quality of political institutions; the more some attributes of democracy are seen, the greater the expenditure. This difference in response between them can be attributed to a variation in institutional quality. Therefore, an improvement in strategic risk planning together with greater government transparency could lead to institutional quality improvement.gold o

Oil volatility and government spending behaviour in oil-exporting countries.

This thesis principally seeks to provide an empirical examination of the contribution of the dynamic relationship between oil volatility, including revenue, price and rent in relation to government spending behaviour in OPEC and non-OPEC oil exporting countries. A research gap has been identified in three areas, firstly, there is a paucity of comparative literature between OPEC and non-OPEC countries. Secondly, there exists a limited number of studies of oil volatility and the effect on government expenditure. Thirdly, there is little research on the impact of volatility in relation to the quality of political institutions and the influence of extant democratic processes. The thesis, therefore, seeks to contribute to closing these gaps. In particular, the study, firstly, investigates the impact of oil volatility on aggregated government spending. Secondly, it investigates the effect of oil volatility on disaggregated government spending, namely, on health, education and military expenditure. Thirdly, it analyses the effects in periods of high and low oil volatility regimes. Fourthly, it studies the impact of the quality of political institutions on the relationship. Put it differently, the thesis evaluates whether the response to oil volatility differs between democracies and non-democratic states. To achieve this aim, a panel Vector Auto- Regressive (PVAR) model along with panel impulse response functions over the period 1983- 2015 are applied. We find that oil price volatility does not exert any significant effect on aggregated government spending of OPEC countries whereas oil revenue volatility precipitates a decline in economic growth, an increase in inflation and, the maintenance of government expenditure leading to a greater share of the percentage of GDP. Oil rent volatility exercises both a direct and indirect impact on government expenditure via the exchange rate and inflation channels. In contrast, non- OPEC countries are susceptible to oil price uncertainty but are unaffected by higher oil revenue volatility. Oil rent volatility affects government expenditure directly and has an indirect effect through GDP channel. When the focus turns to specific areas of government expenditure, the influence of oil volatility on health expenditure appears to have no effect on that of education in both OPEC and non-OPEC countries. However, it leads to a rise in health and a reduction in military expenditure in OPEC countries and an increase in the share of military spending in non-OPEC states. However, an increase in oil revenue volatility leads to a rise in military expenditure in OPEC countries with no effect in non-OPEC countries. On the other hand, oil rent volatility increases health and military expenditures. Overall, oil volatility leads to higher military expenditure. Turning to the quality of political institutions, it is observed that in democratic countries an increase in oil volatility leads to an increase in government expenditure. In contrast, in non- democratic countries, governments’ response to oil volatility fluctuating between the positive and negative depends on the quality of political institutions; the more some attributes of democracy are seen, the greater the expenditure. This difference in response between them can be attributed to a variation in institutional quality. When the individual components of government expenditure are analysed, we find that in democratic countries, an increase in oil volatility is accompanied by an increase in education and health expenditure, whilst military expenditure remains unchanged. In contrast, in non-democratic countries, oil volatility leads to a reduction in the share of education and health expenditure and an increase in military expenditure. When the degree of democratic attributes is controlled the rate of reduction of health and education expenditure slows, but rising military expenditure is unaffected. Therefore, the behaviour of governments in relation to different component of expenditure are dependent on the quality of the institutions they control; the more the tendency towards a degree of democracy, the less the effect of volatility on health and education whereas the less democracy the greater the emphasis on military spending. There are a number of policy implications that arise. The destructive nature of oil revenue volatility in oil exporting countries indicates a need for some defensive strategies. These could be in the form of the creation of a sovereign wealth fund invested in exogenous non-oil business vehicles providing an alternative form of revenue. Regulatory controls could be adapted to include the use of alternative financial instruments such as the futures and bond markets and the encouragement of FDI inflows would provide a platform for technology transfer encouraging upstream and downstream oil related industries. Structural changes could be introduced to allow an expansion into oil price derivatives, the expansion of oil market value chains and deregulation which would serve to eliminate monopolies. An improvement in strategic risk planning together greater government transparency could lead to institutional quality improvement and the development of health and educational facilities which would both improve national welfare and increase absorptive capacity to provide a platform for industrial expansion

Environmental treaties’ impact on the environment in resource-rich and non-resource-rich countries

This paper examines the impact of environmental treaties on the environment across 74 countries: 50 resource-rich and 24 non-resource-rich countries. Using data spanning over 35 years, we find a negative and significant association between environmental treaties and environmental quality in resource-rich countries. On the contrary, we find environmental treaties positively and significantly affect the environment in non-resource-rich countries. Our results suggest that the environmental treaties signed by resource-rich countries may lead them to achieve sustainable development growth by 2030. Therefore, our results extend the environment literature and inform policymakers of the need to pay attention to the effects of signing environmental treaties on environmental protection.accepted ms from https://eprints.bournemouth.ac.uk/35232/1/R1_Modified_Manuscript_07.12.2020_UPDATED__no_reference_no_tables_.pdf - probably compliant there but may need checking RVO 24/11/2

Analysing the effects of oil price shocks on government expenditure in the Iranian economy

The Iranian economy is closely associated with the oil industry as a key player in the global oil market. Accordingly, oil price spikes have a major influence on government spending with oil revenues being a major source for financing different expenditure categories such as social security, education, arts and culture, and health care. Moreover, recently there have been economic sanctions imposed on Iran owing to the nuclear program which has greatly restricted Iranian oil exports and caused significant distress to government revenue which in turn has spill over effects on Iran's allocations for investment in the energy industry, and more importantly in government spending on care, education, culture and arts, and social security. This paper aims to analyse these overall effects and the impact of oil price spikes on Iranian government expenditure. In order to achieve our objective we rely on a VAR econometric model using data from 1965–2011. The results show that Iranian government social spending does not appear to be significantly affected by oil price shocks

Enhancing innovation performance: how do IC-enhancing HR practices work?

Scholars debate over departing away from the standard and human capital-centered HR practices and paying attention to the social and organizational side of an HR system, highlighting the concept of intellectual capital (IC)-enhancing HR practices. To improve our understanding of how IC-enhancing HR practices help firms achieve innovation performance, we develop and empirically test a framework investigating the joint effects of IC- enhancing HR practices, innovative work behavior (IWB), transformational leadership (TL), and innovation performance. We designed rigorous time-lagged research with three waves of data gathering from CEOs, R&D employees, and R&D managers. Analysis of 279 manufacturing companies in the healthcare industry demonstrates that individual-level IWB positively and significantly mediates the relationship between IC-enhancing HR practices and innovation performance. More conspicuously, we found that the effect of IC-enhancing HR practices on IWB is higher when TL exists. We discuss outright novel theoretical and empirical insights that our study offers."Academy of Management Annual Meeting Proceedings includes abstracts of all papers and symposia presented at the annual conference, plus 6-page abridged versions of the “Best Papers” accepted for inclusion in the program (approximately 10%). Papers published in the Proceedings are abridged because presenting papers at their full length could preclude subsequent journal publication. Please contact the author(s) directly for the full papers." ie it's not a full journal articl

A new method for optimal location of FACTS devices in deregulated electricity market

Under deregulated environment, transmission networks are operated close to their constraints. In this situation, FACTS devices can be useful in secure system operation. Private investorpsilas goal is maximizing their investment surpluses. In this paper, we propose a new algorithm for optimal location of FACTS devices that the objective function is maximizing FACTS device ownerpsilas surplus. According to this algorithm, maximum FACTS device capacities in transmission network are found which are acceptable economically and the priority of all acceptable projects are determine by calculating the rate of annual revenue and annual cost. The proposed algorithm has been implemented for optimal placement of TCSC on a nine buses test system and the results have been compared with other optimal location methods based on congestion management and increasing system load ability