A platform for research: civil engineering, architecture and urbanism
A platform for research: civil engineering, architecture and urbanism
Causality in the Relationship between Economic Growth and Compensation
Compensation of labour and economic growth are two economic variables of particular interest to researchers. There have been many theories linking these quantities in causal relationships. Similarly, some studies suggest that changes in wages lead to economic growth, while others contradict this and suggest that economic growth is the cause of changes in wages. It is important to determine which of these quantities is the cause and which is the effect, as this allows for a more effective implementation of fiscal policy. The research presented in this article addresses this issue. They are based on data from OECD countries for the years 2003–2021. Correlation and cointegration analysis were used in the description. Both general dependencies, i.e., based on annual averages obtained for each country, and specific dependencies, i.e., for each country separately, have been examined. The general conclusion is that current compensation acts as a brake on economic growth, while current economic growth stimulates future compensation. Such results can be the basis for designing government programmes aimed at stimulating the economy rather than regulating wages. However, the specifics of some countries differ from the general conclusion. However, these countries are in the minority.
Causality in the Relationship between Economic Growth and Compensation
Compensation of labour and economic growth are two economic variables of particular interest to researchers. There have been many theories linking these quantities in causal relationships. Similarly, some studies suggest that changes in wages lead to economic growth, while others contradict this and suggest that economic growth is the cause of changes in wages. It is important to determine which of these quantities is the cause and which is the effect, as this allows for a more effective implementation of fiscal policy. The research presented in this article addresses this issue. They are based on data from OECD countries for the years 2003–2021. Correlation and cointegration analysis were used in the description. Both general dependencies, i.e., based on annual averages obtained for each country, and specific dependencies, i.e., for each country separately, have been examined. The general conclusion is that current compensation acts as a brake on economic growth, while current economic growth stimulates future compensation. Such results can be the basis for designing government programmes aimed at stimulating the economy rather than regulating wages. However, the specifics of some countries differ from the general conclusion. However, these countries are in the minority.
Causality in the Relationship between Economic Growth and Compensation
Grzegorz Przekota (author) / Andrzej Janowski (author) / Anna Szczepanska-Przekota (author)
2023
Article (Journal)
Electronic Resource
Unknown
Metadata by DOAJ is licensed under CC BY-SA 1.0
Analysis of causality between energy consumption and economic growth in Indonesia
| Taylor & Francis Verlag | 2014
Causality between Foreign Remittance and Economic Growth: Empirical Evidence from Croatia
| DOAJ | 2021
Causality Relationship between Housing Prices and Construction Costs
| Taylor & Francis Verlag | 2008