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1.
Calitatea ; 23(186):123-133, 2022.
Article in English | ProQuest Central | ID: covidwho-20243504

ABSTRACT

This study aimed to optimize the line managers performances in the human resources (HR) division in answering the role of the HR management function problem in Medan City Manufacturing Company. The novelty proposed is a concept of HR management called "Human Resources Professional Transformation". Specifically, this concept discussed the ability of HR division line managers to make adaptive changes to the company's business-oriented functional divisions with managerial competence, commitment, innovation capability, and readiness for changes towards work performance. The population of this research was the line manager of the HR division, totaling 185 respondents. The sampling technique used a probability sampling approach with simple random sampling through the slovin formula, totaling 126 respondents. The analytical tool used is structural equation software through the SmartPLS application program. The results showed that managerial competence, commitment, innovation capability had a positive and significant effect through the HR professional transformation on the performance of line managers in the HR division. Meanwhile, readiness for change has a positive and insignificant effect on the HR Professional Transformation. Readiness for change also has a positive and insignificant effect on the Line Managers Performances in the Human Resources Division through HR Professional Transformation. Based on the suitability test of the research model, it proved that the HR Professional Transformation can answer the problem of the role of the management function to improve the line managers performances in the HR division with managerial competence, commitment, innovation capability, and readiness for change of 0.907.

2.
Ankara Hacı Bayram Veli &Uuml ; niversitesi Íktisadi ve Ídari Bilimler Fakültesi Dergisi; 25(1):143-168, 2023.
Article in Turkish | ProQuest Central | ID: covidwho-20239692

ABSTRACT

Bu çalışmanın amacı, Covid-19 salgının Türkiye'de yükseköğretimden istihdama geçiş sürecinde yol açtığı sonuçları tespit edip, değerlendirmektir. Bu kapsamda Türkiye'deki yükseköğretim kurumlarının lisans programlarından Covid-19 öncesi (2019 Aralık) ve bir yıl sonrası (2020 Aralık) tarihleri itibarıyla, son üç yılda mezun olan yaklaşık bir milyon lisans öğrencisinin, eğitim ve istihdam verileri eşleştirilerek analiz edilmiştir. Lisans mezunlarının eğitim aldıkları alanlara göre kayıtlı istihdam oranları, ilk işe girme süreleri ve kazanç durumlarının yanı sıra eğitim alanı ve meslek eşleşme oranları da Covid-19 öncesi ve bir yıl sonrası olmak üzere mukayese edilmiştir. Yükseköğretim bölümlerinin sınıflandırılması Uluslararası Standart Eğitim Sınıflandırması (ISCED-F) ikinci seviyede yapılırken, meslek sınıflamaları Uluslararası Standart Meslek Kodu (ISCO-08) üçlü seviyede yapılmıştır. Araştırma bulgularına göre Covid-19 sürecinde kayıtlı istihdamın en çok azaldığı alan %11.8 ile Hukuk olurken, artışın en yüksek olduğu alan ise %7.3‘lük artışla Ormancılık olmuştur. Diğer yandan ortalama reel kazancın en çok azaldığı iki alan Hukuk (369 TL) ve Güvenlik hizmetleri (140 TL) olurken, reel kazancın en çok artış gösterdiği iki alan Veterinerlik (429 TL), Matematik ve Ístatistik (401 TL) olmuştur. Bunların yanı sıra, Covid-19 öncesi lisans mezunlarının ilk işe giriş ortalaması 9,0 ay iken, salgın sonrası bu ortalama 7,6 aya kadar düşmüştür. Son olarak, 2019 yılı sonunda eğitim aldığı alanda çalışanların oranı %67,5 iken, bu oran Covid-19 döneminde % 1,6 azalarak %65,9'e gerilemiştir.Alternate :The purpose of this study is to determine and evaluate the consequences of the Covid-19 epidemic in the transition from higher education to employment in Türkiye. In this regard, the education and employment data of approximately one million undergraduate students who graduated in the last three years from the undergraduate programs of higher education institutions in Türkiye, were matched and compared with pre-Covid-19 (December 2019) and one year later (December 2020). The registered employment rates, the search time for a first job, incomes of undergraduate graduates according to their fields of education were compared before Covid-19 and after one year. While the classifications of higher education departments were made at the second level of the International Standard Classification of Education (ISCED-F), the occupational classifications were made at the triple level of the International Standard Occupational Code (ISCO-08). According to the research findings, the area where registered employment decreased the most during the Covid-19 period was Law with 11.8%, while the area with the highest increase was Forestry with an increase of 7.3%. On the other hand, the two fields in which the average real income decreased the most were Law (369 TL) and Security services (140 TL), while the two fields in which the real income increased the most were Veterinary (429 TL), Mathematics and Statistics (401 TL). In addition, while the average months of first job entry for undergraduate graduates before Covid-19 was 9.0 months, this average decreased to 7.6 months after the pandemic. Finally, while the rate of skills match was 67.5% at the end of 2019, this rate decreased by 1.6% and became 65.9% during the Covid-19 period.

3.
Sustainability ; 15(11):8748, 2023.
Article in English | ProQuest Central | ID: covidwho-20238828

ABSTRACT

The number of inbound tourists in Japan has been increasing steadily in recent years. However, due to the COVID-19 pandemic, the number of inbound tourists decreased in 2020. This is particularly worrisome for Japan, as the number of inbound tourists is expected to reach 60 million per year by 2030. In order to help Japan's tourism industry to recover from the pandemic, we propose a method of identifying elements that attract the attention of inbound tourists (focus points) by analyzing reviews on tourist sites. We focus on Hokkaido, a popular area in Japan for tourists from China. Our proposed method extracts high-frequency n-gram patterns from reviews written by Chinese inbound tourists, showing which aspects are mentioned most often. We then use seven types of motivational factors for tourists and principal component analysis to quantify the focus points of each tourist destination. Finally, we estimate the focus points by clustering the n-gram patterns extracted from the tourists' reviews. The results show that our method successfully identifies the features and focus points of each tourist spot.

4.
Spatial Economics ; 19(1):71-92, 2023.
Article in Russian | Scopus | ID: covidwho-20237636

ABSTRACT

This paper examines regional differences in the demand for digital skills based on an analysis of 9 million vacancies posted on the Unified Digital Platform ‘Work in Russia' in 2018–2022. We examine approaches used in the literature to classify digital skills and using it develop our own classification. The paper studies the advantages and limitations of various indicators of the demand for digital skills. We suggest that the ratio between the share of vacancies requiring digital skills of a certain group in the region and the labor force population should be used as the most appropriate one. The results of the study show that in Russia there is still a significant regional differentiation in the employer's demand for all selected groups. Differentiation increased with the beginning of the COVID-19 pandemic, and decreased slightly in 2021–2022. We reveal that regions with a higher level of economic development have higher requirements for digital skills. Digital skills are more often required in regions specialized on primary production and less often in agricultural regions. Of the federal districts, a slightly higher level of demand for digital skills is observed in the Ural and Far Eastern federal districts, while a significantly lower level is observed in the North Caucasus federal district. © 2023 Spatial Economics. All rights reserved.

5.
Higher Education Skills and Work-Based Learning ; 2023.
Article in English | Web of Science | ID: covidwho-20237030

ABSTRACT

PurposeDrawing on human capital theory and sustainable career theory, this paper aims to explore the impact of undertaking an industrial placement on the "Great Eight" competencies as perceived by university students and line managers.Design/methodology/approach618 students and their line managers across three cohorts (pre-COVID-19) took part in a longitudinal quantitative study. Students completed a three-wave questionnaire at the placement's start, middle, and end. Line managers completed the questionnaire during waves two and three to offer 360-degree feedback. Descriptive statistics and repeated measures ANOVA were applied to the dataset.FindingsThe impacts of undertaking a placement were highly variable for different competencies at the sub-scale level, although at the eight-scale level, the nuance was less pronounced. However, students self-perceived that all eight competencies increased between the start and end of the placement. Surprisingly, line managers perceived students' competencies to be higher than perceived by the students.Originality/valueThe value of undertaking a placement is often poorly measured (e.g. satisfaction) rather than competency-based outcomes, which can lead to conclusions that are overly simplistic and difficult to use in practice. Theoretically, this study advances understanding of human capital theory and sustainable career theory by understanding the role placements can play in developing human capital and preparing university students for sustainable careers. Practically, the findings of this study can help to close the university-industry skills gap by informing curriculum and placement scheme design and supporting students to acquire personal resources and signal these to prospective employers as an antecedent to career sustainability.

6.
LC GC North America ; 38(10):562-563, 2020.
Article in English | ProQuest Central | ID: covidwho-20234501

ABSTRACT

[...]we did, and we discussed digital transformation's evolution and how laboratories can benefit, too. Curtis: This is a term that's used in so many different contexts that it's important to step back and understand that it's not just about focusing on a micro-component of the work process in your laboratory, but about identifying and addressing a given process end to end. Specifically, you want to improve data capture throughout the entire process. [...]any type of digital transformation is about tackling the end-to-end process rather than any single system, which tends to be a very tactical approach. Digital transformation creates the opportunity to support remote teams and be much more flexible and effective with human capital.

7.
Development Policy Review ; 2023.
Article in English | Web of Science | ID: covidwho-20231252

ABSTRACT

MotivationThe development of human capital is a priority for most nation states, accelerated by the COVID-19 global pandemic. In the context of reimagining a "new normal" post-COVID, we reconsider the concept of human capital, and focus on knowledge, skills, and training of individuals in order to capture aspects of inclusive development.PurposeThis paper shows how the perspective of women, informal sector workers, representing some of the most marginalized workers in society, informs and improves our understanding of human capital and its development and utilization.Methods and approachOur findings are derived from field-based research conducted over the summer of 2021 in which multiple (virtual) focus group discussions (FGDs) were held with selected members of the Self-Employed Women's Association (SEWA) in India.FindingsThrough our FGDs, the participants provided new perspectives and insights into our knowledge of human capital, emphasizing the importance of social protection programmes, gender equity, ongoing training opportunities, decentralized supply chains, and income security. Perhaps most significantly, the benefits accrued to women through being organized have been key to unlocking their human capital potential.Policy implicationsOur research highlights themes that are often overlooked in the literature or are beyond the scope of more narrow conceptualizations of human capital. We show that human capital is tightly interwoven with other forms of capital (community assets), and hence efforts to build the former cannot be achieved in isolation from attending to the latter.

8.
European Journal of International Management ; 20(1):124-142, 2023.
Article in English | Web of Science | ID: covidwho-2328374

ABSTRACT

We compare the self-employment intentions of women from different contexts, namely, Egypt and Spain after two recent incidents of global economic collapse - the 2008 global financial crisis and the COVID-19 pandemic. We draw on occupational choice and human capital theories to better understand how the self-employment intentions of women with different age, perceptual and human capital profiles vary in periods of crisis. Consistent with previous studies, the results suggest that intentions of self-employment vary with the specific perceptual and human capital attributes of women. However, the macroeconomic conditions and the context matter since the findings also show that the factors that drive the self-employment intention of women differ from one global shock to another. Moreover, the impact of each global shock in every context is different. These findings provide new guidance for policymakers by acknowledging the relevance of the heterogeneity of women, economic periods and contexts to the choice of self-employment.

9.
Journal of African Economies ; 32:II69-II80, 2023.
Article in English | Web of Science | ID: covidwho-2328095

ABSTRACT

The paper looks at the nexus between growth, poverty, inequality and redistribution in Africa, using Kenya as a case study. The existing literature shows a strong causal link from growth to poverty reduction. This link is the basis for the pro-poor poverty reduction strategy. There is evidence from the AERC studies that, poverty reduction in a given period is associated with higher growth rates in successive periods that are inequality-reducing and conceptually long lasting. This virtuous spiral of poverty reduction, higher growth and less inequality over time, is the basis for the pro-growth poverty reduction strategy that has recently been emphasized in the literature (Thorbecke and Ouyang, 2022). The two poverty reduction strategies, a pro-poor strategy and a pro-growth poverty reduction one, complement each other, sustaining household escapes from poverty over time. The paper provides evidence from Kenya showing that human capital formation is the key mechanism underlying the virtuous spiral of lower poverty, higher growth and less inequality as the economy progresses through time. A perspective on robustness of the virtuous spiral in the context of COVID-19 and other pandemics is offered in the concluding section of the paper.

10.
International Journal of Health Governance ; 28(2):117-136, 2023.
Article in English | ProQuest Central | ID: covidwho-2324047

ABSTRACT

PurposeThe main motivation of the present study is to understand the severity of the effect of health shock on Iran's oil economy and analyze the role of government under these conditions.Design/methodology/approachDynamic stochastic general equilibrium (DSGE) models can show the precise interactions between market decision-makers in the context of general equilibrium. Since the duration of the virus outbreak and its effect on the economy is not known, it is more appropriate to use these models.FindingsThe results of the survey of hands-on policies scenarios compared to the state of hands-off policy indicate that the effect of government expending shocks on the economy under pandemic disease conditions has much less feedback on macroeconomic variables.Originality/valueAs a proposed policy, it is recommended that the government play a stabilizing role under pandemic disease conditions.Key messages There is no study regarding health shock and its economic effects in Iran using DSGE models. Also, in foreign studies, the health shock in an oil economy has not been modeled.The general idea in the present study is how the prevalence of a pandemic infectious disease affects the dynamics of macroeconomic variables.In three different scenarios, according to the persistence of health disaster risk and the deterioration rate of health capital due to this shock, the model is simulated.In modeling pandemic diseases, quarantine hours are considered as part of the total time of individuals.According to the research findings, it is recommended that the government, as a policy-maker, play a stabilizing role under pandemic crises conditions.

11.
Tourism Review of AIEST - International Association of Scientific Experts in Tourism ; 78(3):834-848, 2023.
Article in French | ProQuest Central | ID: covidwho-2323422

ABSTRACT

PurposeThe purpose of this study was to investigate the causal configuration effect of the determinants of tourism entrepreneurship in rural tourism destinations based on the capital framework.Design/methodology/approachThe data for this research were collected from a sample comprising 140 rural enterprise owners in China and analyzed via fuzzy-set qualitative comparative analysis.FindingsAll the investigated capital factors were relevant to tourism entrepreneurship, although they only facilitated tourism entrepreneurship when combined. It was observed here that four capital configurations promoted tourism entrepreneurship in rural destinations, highlighting the multiple paths toward rural tourism entrepreneurship. The human and physical capitals of entrepreneurs were key to tourism entrepreneurship.Practical implicationsIt is relevant for entrepreneurs and managers to realize that there are multiple strategies for promoting tourism entrepreneurship in rural destinations. The four capital configurations revealed here offer guidelines for evaluating the potential and possibility of rural tourism entrepreneurship. Local managers and governments must prioritize human and physical capitals when the venture capital and resources are limited.Originality/valueFirst, the findings of this study deepened the understanding of the factors influencing tourism entrepreneurship using the capital framework. Second, it revealed that capital configurations determined tourism entrepreneurship and that existence and interactions of the various forms of capital affect rural entrepreneurship. Third, this study revealed that the success of tourism entrepreneurship depends on the entrepreneur's ability to combine the various forms of capital and resources.

12.
Global Media Journal ; 21(62):1-3, 2023.
Article in English | ProQuest Central | ID: covidwho-2323191

ABSTRACT

Keywords: Agenda;Framing;Social representations;Expectations;Computer Introduction The development of research projects often requires the competition of computers, software and data analysis techniques, but the acceptance, appropriation and intensive use of them presents limitations in terms of utility and risk expectations [1]. Some explanatory models of human capital formation suggest that the formation of talent or intellectual capital in intangible assets of organizations is due to habitus [3]. [...]the predictive models of the social representations of these determinants have not been observed in the explanation of the relations with the intensive use of technologies, devices and electronic networks. [...]the objective of the present work was to establish the academic link relative to the social representations of computer computers, considering the dimensions of the organizational, educational and cognitive models. Methodology A documentary, retrospective and exploratory study was carried out with a selection of sources indexed to international repositories Table 1, considering the indexing period from 2019 to 2021, as well as the search by allusive keywords for negative (stigma, risk, rejection) and positive (utility, acceptance, appropriation) (Table 1) Content analysis and opinion matrices were used, considering the inclusion of findings, ratings and comparisons of coded data such as;-1 for negative dimensions (stigma, risk and rejection) and +1 for positive dimensions (utility, acceptance and appropriation) The qualitative data analysis package was used, considering equation (1) in which the contingency relations and the proportions of probabilities of taking risks in permissible thresholds of human capital formation stand out The contrast of the null hypotheses was made from the estimation of these parameters.

13.
Health Science Journal ; 17(4):1-9, 2023.
Article in English | ProQuest Central | ID: covidwho-2318898

ABSTRACT

Keywords: Organization;Human Capital;Intangible Asset;Model;Specification Introduction Within the framework of regionalist policies, which tend towards protectionism and the stagnation of competitiveness, as well as the multilateralism policies that promote the guidelines of international financial organizations to which the central bank is dependent, the need to study capital human as an intangible asset of entrepreneurial and innovative organizations, therefore, competitive, but without a recipe from the World Bank, the World Trade Organization or the International Monetary Fund [1]. [...]trajectories of dependency relationships were modelled following the principles of complexity in organizations, namely: factuality, fuzziness, chaos and emergency [3]. [...]it is inferred not only who the actors are or who they have been, but who they will be in certain environmental contingencies, organizational cultures and work climates. Isomorphism is inferred when the climate of relationships is in equilibrium with respect to the task climate, that means that demands and resources are also in balance. [...]isomorphism reveals the interrelation between negun tropia and entropy. From the role of the leader, the manager calls for promoting communication and the sense of the objectives that are to be achieved in the immediate future, in the medium and long term. [...]leadership is related to motivate and inspire this transformation and to interact with personal actions and those of teams.

14.
Health Science Journal ; 17(4):1-7, 2023.
Article in English | ProQuest Central | ID: covidwho-2318758

ABSTRACT

[...]those with more educational background and experience in the processes will be considered talents. If rational choice and human capital reflect a propositional audience style that coexists with inhibitory styles of entrepreneurship and innovation, then business models must adjust to this complex dialectic, while identifying the reasons for actions, it will be possible to establish a dialogue to highlight the competitive advantages of the product or service that is intended to be carried out on the Internet, social networks or email. [...]the construction of a civil agenda or social selfmanagement supposes the informative diffusion of the demands and resources, opportunities and capacities, since it is the digital networks that question the public agenda -Trolling-, or, better said, strengthen it - Stalking, Trending [11]. [...]cyber political entrepreneurship refers to the intensive use of Information and Communication Technologies, as well as electronic devices for the establishment of an agenda regarding trolling, stalking or the tendency towards a political figure or process. The model includes hypotheses of correlation trajectories between the variables used by the state of knowledge to explain: the establishment of an educational, scientific and technological agenda;professional training of human capital, talents and leadership;knowledge networks around strategic alliances between universities and for-profit organizations;the quality of educational processes and products

15.
Transformations in Business and Economics ; 22(1):51-64, 2023.
Article in English | Scopus | ID: covidwho-2317604

ABSTRACT

Any organization's management highly depends on its human capital. The efficient use of an organization's resources – material, financial, informational, or human – is essential to its smooth operation. Therefore, it is also important to focus on employee and employee engagement. Employee or work engagement is a widely accepted topic. Companies are interested in this subject and work with agencies or attempt to independently assess the level of employee work engagement in order to determine the causes of high or low engagement rates and develop ways to raise it. Employees who work in retail were questioned for this study. The goal of the study is to determine the impact of managers on retail employees' level of work engagement based on their age, gender, and work status (manager or non-manager), A few questions were chosen from a variety of employee engagement measuring tools to assess the manager's influence. On a five-point Likert scale, respondents responded to 11 items in the survey (1 strongly disagree – 5 strongly agree), In order to compare the results after a year, the survey was done twice in Austria, once in May 2021 (during the active Covid-19 epidemic) and once in May 2022. Employees in the retail industry (N = 3047 in 2022 and N = 2535 in 2021) responded to an online survey sent to their company e-mail addresses. The findings indicate a little increase in employee work engagement between 2021 and 2022 of 1.2 per cent. The comparison reveals no significant variations between years and just marginally better or worse answers to a few questionnaire questions. Work engagement grew as a result of the manager's influence by 4.9 per cent in 2021 to an even 79 and by 5.6 per cent in 2022 to 80.9. © Vilnius University, 2002-2023.

16.
Dissertation Abstracts International: Section B: The Sciences and Engineering ; 84(7-B):No Pagination Specified, 2023.
Article in English | APA PsycInfo | ID: covidwho-2317114

ABSTRACT

Emotional intelligence has been found to have a significant impact on team performance and overall employee satisfaction levels, which in turn has been found to have an adverse effect on turnover intentions. The purpose of this quantitative, correlational-predictive study was to determine if and to what extent emotional intelligence (EI) predicts turnover intention (TI) in the employees of virtual Financial Technology (FinTech) organizations in the United States. The emotional intelligence theory by Mayer et al. (1990) and the theory of planned behavior by Ajzen (1985) were utilized as the theoretical foundations of this study. The data were collected on LinkedIn through convenience and snowball sampling from employees working virtually at FinTech organizations. A sample of n =120 was collected using the Wong and Law Emotional Intelligence Scale (WLEIS) by Wong and Law and the Turnover Intention Scale (TIS-6) by Roodt. The findings from multiple linear regression analysis indicated that the overall regression model was statistically significant, F(4,115) = 2.99, p = .022, R2 = .094. Due to the statistical significance, the subsequent hypotheses were tested to answer the overarching research question. The results indicated that the EI subscale items OEA and UOE did not significantly predict TI;however, SEA and ROE did significantly predict TI. These study findings contribute to both the theoretical foundations by expanding the additional predictors of TI in virtual FinTech organizations within the United States. (PsycInfo Database Record (c) 2023 APA, all rights reserved)

17.
Journal of the Knowledge Economy ; 14(1):86-115, 2023.
Article in English | ProQuest Central | ID: covidwho-2314576

ABSTRACT

The main objective of this study is to analyze the effect of institutional quality on education quality in developing countries. The literature review explores the channels through which institutional quality transits to affect education quality. The empirical analyses cover a sample of 82 developing countries. The main results obtained using ordinary least squares and two-stage least squares estimators show that institutional quality has a positive effect on student achievement and school completion, and a negative effect on educational failure. Concerning the role of transmission channels, the results show that a deterioration in institutional quality, characterized in particular by the presence of corruption, political instability, or the deterioration of government effectiveness, reduces the effectiveness of public spending on education and the quality of teaching through unethical behavior of teachers and the recruitment of untrained or less trained persons to carry out teaching tasks.

18.
Economy of Regions ; 19(1):111-121, 2023.
Article in English | Scopus | ID: covidwho-2313936

ABSTRACT

Human capital is an important factor for economic growth and the development of socio-economic systems. However, the appropriate expression of the value of human capital, the mechanism and its impact on economic development are still under discussion. It is hypothesised that there is a relationship between human capital and economic growth. To test this hypothesis, data on the group of Visegrad (V4) countries for the period 2000–2019 was analysed. The study examines the presence of a causal link between some attributes of human capital and economic growth and the conditions, under which its positive effects can be expected based on statistical methods. It also deals with the role and the applicability of some of its characteristics to express the impact of human capital on economic growth. The model revealed a positive, statistically significant relationship between gross domestic product per capita and the innovative capacity of human capital and the qualifications of employees. The impact of tools for human capital creation and development extends over a longer period and is reduced by the simultaneous action of other labour market factors. Currently, economies are affected by the Covid-19 pandemic. Corresponding changes are also noticeable in the way work is done, with more weight on the home office. It will be interesting to examine how this transformation will affect economic growth. The changes in the position of employees and the care of companies for human capital are also a good topic for further research that can be conducted every few years. © Daňová M., Širá E. Text. 2023.

19.
Labour Economics ; : 102385, 2023.
Article in English | ScienceDirect | ID: covidwho-2313598

ABSTRACT

Before the COVID-19 pandemic, student F-1 visa applicants faced a 27 percent refusal rate that varies by time and region. Recent immigration policies have created uncertainty in whether international students will receive their visas. Using data on the universe of SAT takers between 2004 and 2015 matched with college enrollment records, we examine how the anticipated F-1 visa restrictiveness influences the enrollment of international students in the US. Using an instrumental variables approach, we find that a higher anticipated F-1 student visa refusal rate decreases the number of international SAT takers, decreases the probability of sending SAT scores to US colleges, and decreases international student enrollment in the US. The decreases are larger among international students with higher measured academic achievement. We also document academic achievement of international students and show that over 40 percent of high-scoring international SAT takers do not pursue US college education.

20.
Sustainability ; 15(9):7146, 2023.
Article in English | ProQuest Central | ID: covidwho-2312839

ABSTRACT

Through fiscal policy, the government can influence businesses and individuals in order to regulate their behaviour. The research used panel data from all 27 EU countries covering the period 2008–2020 to investigate the impact of direct taxation on economic growth at the level of two main clusters of countries concerning fiscal efficiency. Therefore, the analysis employed cluster methods to classify the main EU countries in both groups of countries with a high level of fiscal efficiency and those with a rather limited level of fiscal efficiency. The study employs fixed effect models and dynamic GMM methods to investigate the effect of direct taxation components (personal and corporate income taxes) on economic growth. The analysis also considers the informal economy's role in relation to the official economy. The empirical results revealed that corporate income taxes significantly negatively impact economic growth for both clusters of high- and limited fiscal efficiency countries. Additionally, personal income tax was associated with lower economic growth for countries in the limited fiscal efficiency group. Thus, from the perspective of policymakers, lowering direct taxation can increase disposable income, stimulate consumption and economic growth, encourage investment leading to job creation, increase competitiveness, and reduce tax evasion and avoidance, thereby leading to a more efficient tax system.

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