Causal relationship between trade openness, economic growth and energy consumption: A panel data analysis of Asian countries

International Nuclear Information System (INIS)

Nasreen, Samia; Anwar, Sofia

2014-01-01

This paper explores the causal relationship between economic growth, trade openness and energy consumption using data of 15 Asian countries. The study covers the period of 1980–2011. We have applied panel cointegration and causality approaches to examine the long-run and causal relationship between variables. Empirical results confirm the presence of cointegration between variables. The impact of economic growth and trade openness on energy consumption is found to be positive. The panel Granger causality analysis reveals the bidirectional causality between economic growth and energy consumption, trade openness and energy consumption. - Highlights: • This study analyzes causality between energy, growth and trade in the Asian region. • Empirical results supported cointegrating relationship between variables. • Positive impact of growth and trade openness on energy usage is found in the long run. • Bidirectional Granger causality is observed between selected variables in the long run

The Nexus between Military Spending and Economic Growth in Newly Industrialized Countries: Panel Evidence from CrossSectional Dependency

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Mehmet Akif DESTEK

2016-05-01

Full Text Available In this study, the long term relationship between military spending and economic growth in newly industrialized countries is analyzed with panel data methods for the years of 1988-2013. The study, where panel unit root, panel co-integration, panel co-integration estimator and panel causality tests that allow cross-sectional dependence are used, shows that the feedback hypothesis is valid in newly industrialized countries. And when these countries are analyzed separately, it is seen that the growth hypothesis is valid for India, Malaysia, Mexico and South Africa; the neutrality hypothesis is valid for China, Indonesia, Philippines, Thailand and Turkey and the growth detriment hypothesis is valid for Brazil.

Natural Disasters, Economic Growth and Sustainable Development in China―An Empirical Study Using Provincial Panel Data

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Ji Guo

2015-12-01

Full Text Available Using a newly developed integrated indicator system with entropy weighting, we analyzed the panel data of 577 recorded disasters in 30 provinces of China from 1985–2011 to identify their links with the subsequent economic growth. Meteorological disasters promote economic growth through human capital instead of physical capital. Geological disasters did not trigger local economic growth from 1999–2011. Generally, natural disasters overall had no significant impact on economic growth from 1985–1998. Thus, human capital reinvestment should be the aim in managing recoveries, and it should be used to regenerate the local economy based on long-term sustainable development.

Primary commodity export and economic growth in sub sahara africa: evidence from panel data analysis

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Matthew Ocran

2011-08-01

Full Text Available The paper sought to examine the impact of instability in primary commodity export earnings and the level of commodity dependence on economic growth in Sub Saharan Africa (SSA.  Fixed effects panel data estimator was used in the empirical estimation. The findings of the study suggest that there is a negative relationship between instability in export earnings and economic growth. The results also indicate that the level of commodity dependence matter in determining economic growth in the region. The results of the paper have economic development policy implications for SSA economies and these are not farfetched. First, it appears the difficult growth experience of SSA is not solely due to instability in export receipts. The question of continued dependence on a narrow range of primary commodities is also matter of great importance.

Estimating the Relationship between Economic Growth and Health Expenditures in ECO Countries Using Panel Cointegration Approach

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Nahid Hatam

2016-03-01

Full Text Available Increasing knowledge of people about health leads to raising the share of health expenditures in government budget continuously; although governors do not like this rise because of budget limitations. This study aimed to find the association between health expenditures and economic growth in ECO countries. We added health capital in Solow model and used the panel cointegration approach to show the importance of health expenditures in economic growth. For estimating the model, first we used Pesaran cross-sectional dependency test, after that we used Pesaran CADF unit root test, and then we used Westerlund panel cointegration test to show if there is a long-term association between variables or not. After that, we used chaw test, Breusch-Pagan test and Hausman test to find the form of the model. Finally, we used OLS estimator for panel data. Findings showed that there is a positive, strong association between health expenditures and economic growth in ECO countries. If governments increase investing in health, the total production of the country will be increased, so health expenditures are considered as an investing good. The effects of health expenditures in developing countries must be higher than those in developed countries. Such studies can help policy makers to make long-term decisions.

Estimating the Relationship between Economic Growth and Health Expenditures in ECO Countries Using Panel Cointegration Approach.

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Hatam, Nahid; Tourani, Sogand; Homaie Rad, Enayatollah; Bastani, Peivand

2016-02-01

Increasing knowledge of people about health leads to raising the share of health expenditures in government budget continuously; although governors do not like this rise because of budget limitations. This study aimed to find the association between health expenditures and economic growth in ECO countries. We added health capital in Solow model and used the panel cointegration approach to show the importance of health expenditures in economic growth. For estimating the model, first we used Pesaran cross-sectional dependency test, after that we used Pesaran CADF unit root test, and then we used Westerlund panel cointegration test to show if there is a long-term association between variables or not. After that, we used chaw test, Breusch-Pagan test and Hausman test to find the form of the model. Finally, we used OLS estimator for panel data. Findings showed that there is a positive, strong association between health expenditures and economic growth in ECO countries. If governments increase investing in health, the total production of the country will be increased, so health expenditures are considered as an investing good. The effects of health expenditures in developing countries must be higher than those in developed countries. Such studies can help policy makers to make long-term decisions.

Impact of Energy Consumption on Economic Growth in Major OECD Economies (1977-2014): A Panel Data Approach

OpenAIRE

Aali-Bujari, Alí; Venegas-Martínez, Francisco; Palafox-Roca, Alfredo Omar

2017-01-01

This paper is aimed at assessing the impact of energy use growth on economic growth in the major economies of the Organization for Economic Cooperation and Development (OECD) during the period 1977-2014. To do this, a Granger causality analysis among relevant variables is carried out and, subsequently, a panel data model is estimated with the Generalized Method of Moments (GMM). The main empirical finding is that real GDP per capita growth is positively affected by the growth rate of energy u...

Electricity consumption and economic growth: Exploring panel-specific differences

International Nuclear Information System (INIS)

Karanfil, Fatih; Li, Yuanjing

2015-01-01

In this paper, we examine the long- and short-run dynamics between electricity consumption and economic activities, using panel data of per capita electricity consumption and per capita GDP of 160 countries for the period of 1980–2010, accounting for the degree of electricity dependence and the level of urbanization. Furthermore, in order to capture the differences in this relationship, the full sample is divided into various subsamples based on countries' income levels, regional locations and OECD memberships. This framework is argued and found to be appropriate since the causal links and inferences arising therefrom differ considerably among the subsamples, which led us to conclude that the electricity-growth nexus is highly sensitive to regional differences, countries' income levels, urbanization rates and supply risks. -- Highlights: •The causal relationship between electricity consumption and GDP is investigated. •Cointegration techniques are used for 160 countries and 13 subsamples. •Urbanization and electricity trade are accounted for as additional covariates. •Causal inferences are found to be associated with panel-specific differences. •Policy issues are discussed based on the study results

Energy, human capital and economic growth in Asia Pacific countries — Evidence from a panel cointegration and causality analysis

International Nuclear Information System (INIS)

Fang, Zheng; Chang, Youngho

2016-01-01

This paper examines the cointegration and causal relationship between energy consumption and economic development in 16 Asia Pacific countries over the period 1970–2011 using the augmented production function which considers not only physical capital and labor but also human capital. This is likely among the first of the energy–growth nexus literature to include human capital in the multivariate framework. Using recently developed panel unit root test and cointegration test that allow for cross-sectional dependence, this paper finds a long-run cointegrating relationship between these variables. Continuously-updated fully modified (Cup-FM) estimates are subsequently compared with panel heterogeneous fully modified ordinary least squares (FMOLS) results to confirm the importance of accounting for interdependence across countries. The bootstrap panel Granger causality test results find economic growth Granger cause energy use in the region but the relationship varies for individual countries. - Highlights: • We study the causal link between energy and growth in 16 AP countries for 1970–2011. • Human capital is for the first time incorporated into the multivariate framework. • Recent panel methods allowing for cross sectional dependence is used. • Bootstrap panel Granger causality test results find GDP Granger causing energy use in the region. • The energy–growth relationship varies for individual countries.

Coal Consumption and Economic Growth: Panel Cointegration and Causality Evidence from OECD and Non-OECD Countries

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Taeyoung Jin

2018-03-01

Full Text Available This paper examines the relationship between coal consumption and economic growth for 30 OECD (Organisation for Economic Co-operation and Development countries and 32 non-OECD countries for 1990–2013 using a multivariate dependent panel analysis. For the analysis, we conducted the common factor defactorization process, unit root test, cointegration test, long-run cointegrating vector, and Granger causality test. Our results suggest the following: First, there is no long-run relationship between coal consumption and economic growth in OECD countries; however, in non-OECD countries, the relationship does exist. Second, excessive coal usage may hinder economic growth in the long run. Lastly, the growth hypothesis (coal consumption affects economic growth positively is supported in the short run for non-OECD countries. As coal consumption has a positive effect on economic growth in the short run and a negative effect in the long run, energy conservation policies may have adverse effects only in the short run. Thus, non-OECD countries should gradually switch their energy mix to become less coal-dependent as they consider climate change. Moreover, a transfer of technology and financial resources from developed to developing countries must be encouraged at a global level.

Energy Consumption, Economic Growth and CO2 Emissions: Evidence from Panel Data for MENA Region

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Sahbi Farhani

2012-01-01

Full Text Available Energy plays a vital role in economic development. It performs a key for sustainable development. Hence, many studies have attempted to look for the direction of causality between energy consumption (EC, economic growth (GDP and CO2 emissions. This paper, therefore, applies the panel unit root tests, panel cointegration methods and panel causality test to investigate the relationship between EC, GDP and CO2 emissions for 15 MENA countries covering the annual period 1973-2008. The finding of this study reveals that there is no causal link between GDP and EC; and between CO2 emissions and EC in the short run. However, in the long run, there is a unidirectional causality running from GDP and CO2 emissions to EC. In addition, to deal with the heterogeneity in countries and the endogeneity bias in regressors, this paper applies respectively the FMOLS and the DOLS approach to estimate the long-run relationship between these three factors.

An interactive environmental model for economic growth: evidence from a panel of countries.

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Ramakrishnan, Suresh; Hishan, Sanil S; Nabi, Agha Amad; Arshad, Zeeshan; Kanjanapathy, Malini; Zaman, Khalid; Khan, Faisal

2016-07-01

This study aims to determine an interactive environmental model for economic growth that would be supported by the "sustainability principles" across the globe. The study examines the relationship between environmental pollutants (i.e., carbon dioxide emission, sulfur dioxide emission, mono-nitrogen oxide, and nitrous oxide emission); population growth; energy use; trade openness; per capita food production; and it's resulting impact on the real per capita GDP and sectoral growth (i.e., share of agriculture, industry, and services in GDP) in a panel of 34 high-income OECD, high-income non-OECD, and Europe and Central Asian countries, for the period of 1995-2014. The results of the panel fixed effect regression show that per capita GDP are influenced by sulfur dioxide emission, population growth, and per capita food production variability, while energy and trade openness significantly increases per capita income of the region. The results of the panel Seemingly Unrelated Regression (SUR) show that carbon dioxide emission significantly decreases the share of agriculture and industry in GDP, while it further supports the share of services sector to GDP. Both the sulfur dioxide and mono-nitrogen oxide emission decreases the share of services in GDP; nitrous oxide decreases the share of industry in GDP; while mono-nitrogen oxide supports the industrial activities. The following key growth-specific results has been obtained from the panel SUR estimation, i.e., (i) Both the food production per capita and trade openness significantly associated with the increasing share of agriculture, (ii) food production and energy use significantly increases the service sectors' productivity; (iii) food production decreases the industrial activities; (iv) trade openness decreases the share of services to GDP while it supports the industrial share to GDP; and finally, (v) energy demand decreases along with the increase agricultural share in the region. The results emphasize the need for

THE RELATIONSHIP BETWEEN NUMBERS OF INTERNATIONAL TOURIST ARRIVALS AND ECONOMIC GROWTH IN THE ASEAN-8: PANEL DATA APPROACH

OpenAIRE

Anggraeni, Garnis Nur

2017-01-01

In an open economy, economic growth is not only supported by international trade but may also be supported through the development of tourism. We can use international tourist arrivals as one of indicators of international tourism. This study aimed to examine the factors that influence international tourist arrivals as well as to analyze the relationship between the number of international tourist arrivals and economic growth in the Southeast Asian regions. This study uses panel data regressi...

Urban population and economic growth: South Asia perspective

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Sandip Sarker

2016-07-01

Full Text Available Previously economic growth was generally discussed in terms of foreign direct investment (FDI, educational growth, savings, investments, inflation as well as trade openness of a nation. Very recently it has been identified that population is one of the major determinants of economic growth of a nation. In the recent years, the study of urbanization has gained a matter of concern in developing countries as it has been recognized as part of a larger process of economic development which is affecting developing countries. South Asian countries are one of the emerging economics and growing at a faster rate over the past few years. At the same time, population of South Asia is growing at a significant rate. Therefore the study has attempted to identify the causal relationship between urban population and economic growth in South Asia using a panel data analysis. The study makes use of the Augmented Dickey-Fuller (ADF and Phillips-Perron (PP, Pesaran as well as Fisher methods for panel unit root test. The panel Pedroni cointegration test suggests that there is long run relationship between the variables. The further panel Vector Error Correction Model (VECM suggests that there is long run causality running from urban population growth to economic growth in South Asia. The study concludes that the growth of urban population can have significant impact on economic growth in South Asia in the long run.

The effects of HIV/AIDS on economic growth and human capitals: a panel study evidence from Asian countries.

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Roy, Shongkour

2014-01-01

Human immunodeficiency virus/acquired immune deficiency syndrome (HIV/AIDS) affects economic growths by reducing the human capitals are among the most poorly understood aspect of the AIDS epidemic. This article analyzes the effects of the prevalence of HIV and full-blown AIDS on a country's human capitals and economic growths. Using a fixed effect model for panel data 1990-2010 from the Asia, I explored the dynamic relationships among HIV/AIDS, economic growths, and human capitals within countries over time. The econometric effects concerned that HIV/AIDS plays an important role in the field of economic growths and it is measured as a change in real gross domestic product (GDP) per capita and human capitals. The modeling results for the Asian countries indicates HIV/AIDS prevalence that has a hurtful effect on GDP per capita by reducing human capitals within countries over time.

Economic Growth, Electricity Consumption, Labor Force and Capital Input: A More Comprehensive Analysis on North China Using Panel Data

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Huiru Zhao

2016-10-01

Full Text Available Over the past three decades, China’s economy has witnessed remarkable growth, with an average annual growth rate over 9%. However, China also faces great challenges to balance this spectacular economic growth and continuously increasing energy use like many other economies in the world. With the aim of designing effective energy and environmental policies, policymakers are required to master the relationship between energy consumption and economic growth. Therefore, in the case of North China, a multivariate model employing panel data analysis method based on the Cobb-Douglas production function which introduces electricity consumption as a main factor was established in this paper. The equilibrium relationship and causal relationship between real GDP, electricity consumption, total investment in fixed assets, and the employment were explored using data during the period of 1995–2014 for six provinces in North China, including Beijing City, Tianjin City, Hebei Province, Shanxi Province, Shandong Province and Inner Mongolia. The results of panel co-integration tests clearly state that all variables are co-integrated in the long term. Finally, Granger causality tests were used to examine the causal relationship between economic growth, electricity consumption, labor force and capital. From the Granger causality test results, we can draw the conclusions that: (1 There exist bi-directional causal relationships between electricity consumption and real GDP in six provinces except Hebei; and (2 there is a bi-directional relationship between capital input and economic growth and between labor force input and economic growth except Beijing and Hebei. Therefore, the ways to solve the contradiction of economic growth and energy consumption in North China are to reduce fossil energy consumption, develop renewable and sustainable energy sources, improve energy efficiency, and increase the proportion of the third industry, especially the sectors which

Energy consumption, economic growth and prices: A reassessment using panel VECM for developed and developing countries

International Nuclear Information System (INIS)

Mahadevan, Renuka; Asafu-Adjaye, John

2007-01-01

This paper reinvestigates the energy consumption-GDP growth nexus in a panel error correction model using data on 20 net energy importers and exporters from 1971 to 2002. Among the energy exporters, there was bidirectional causality between economic growth and energy consumption in the developed countries in both the short and long run, while in the developing countries energy consumption stimulates growth only in the short run. The former result is also found for energy importers and the latter result exists only for the developed countries within this category. In addition, compared to the developing countries, the developed countries' elasticity response in terms of economic growth from an increase in energy consumption is larger although its income elasticity is lower and less than unitary. Lastly, the implications for energy policy calling for a more holistic approach are discussed

Panel estimation for renewable and non-renewable energy consumption, economic growth, CO2 emissions, the composite trade intensity, and financial openness of the commonwealth of independent states.

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Rasoulinezhad, Ehsan; Saboori, Behnaz

2018-04-13

This article investigates the long-run and causal linkages between economic growth, CO 2 emissions, renewable and non-renewable (fossil fuels) energy consumption, the Composite Trade Intensity (CTI) as a proxy for trade openness, and the Chinn-Ito index as a proxy for financial openness for a panel of the Commonwealth of Independent States (CIS) region including Armenia, Azerbaijan, Belarus, Georgia, Kazakhstan, Kyrgyzstan, Moldova, Russia, Tajikistan, Turkmenistan, Ukraine, and Uzbekistan over the period of 1992-2015. It is the first time that CTI and the Chinn-Ito indexes are used in an economic-pollution model. Employing three panel unit root tests, panel cointegration estimation methods (DOLS and FMOLS), and two panel causality tests, the main empirical results provided evidence for the bidirectional long-run relationship between all the variables in all 12 sampled countries except for economic growth-renewable energy use linkage. The findings of causality tests indicated that there is a unidirectional short-run panel causality running from economic growth, financial openness, and trade openness to CO 2 emissions and from fossil fuel energy consumption to renewable energy use.

The nexus between carbon emissions, energy consumption and economic growth in Middle East countries: A panel data analysis

International Nuclear Information System (INIS)

Ozcan, Burcu

2013-01-01

The environmental Kuznets curve (EKC) hypothesis assumes that there is an inverted U-shaped relationship between environmental degradation and income per capita. In other words, as a country grows, it is assumed that its environmental quality improves. In this study, we aim to test the EKC hypothesis for 12 Middle East countries during the period 1990–2008 by employing recently developed panel data methods. Our results provide evidence contrary to the EKC hypothesis. We found evidence favorable to the U-shaped EKC for 5 Middle East countries, whereas an inverted U-shaped curve was identified for only 3 Middle East countries. Furthermore, there appear to be no causal links between income and CO 2 emissions for the other 4 countries. Regarding the direction of causality, there appears to be a unidirectional causality from economic growth to energy consumption in the short-run; in the long-run, however, the unidirectional causality chain runs from energy consumption and economic growth to CO 2 emissions. We also suggest some crucial policy implications depending on these results. - Highlights: • The relationship between CO 2 emissions, energy consumption, and growth is examined. • Panel data estimation methods are used for 12 Middle East countries. • We obtain a U-shaped curve contrary to the EKC hypothesis. • The causality runs from economic growth to energy consumption in the short-run. • In the long-run, causality runs from energy consumption and growth to CO 2 emissions

The renewable energy and economic growth nexus in Black Sea and Balkan countries

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Koçak, Emrah; Şarkgüneşi, Aykut

2017-01-01

The aim of this study is to explore the relationship between renewable energy consumption and economic growth within the framework of traditional production function for the period of 1990–2012 in 9 Black Sea and Balkan countries. For this purpose, we use panel cointegration, co-integration estimate methods and heterogeneous panel causality estimation techniques. The study has concluded that there is a long term balance relationship between renewable energy consumption and economic growth and renewable energy consumption has a positive impact on economic growth. Heterogeneous panel causality analysis results support growth hypothesis in Bulgaria, Greece, Macedonia, Russia and Ukraine; feedback hypothesis in Albania, Georgia and Romania; neutrality hypothesis in Turkey and according to the panel data set including all nine countries the results support feedback hypothesis. With the findings, it was concluded that there is a significant impact of renewable energy consumption on economic growth in Balkan and Black Sea Countries. - Highlights: • Explores the impact of renewable energy on economic growth in Black Sea and Balkan countries. • Employs panel cointegration and heterogeneous causality analyses. • Finds significant effect of renewable energy consumption on economic growth. • Finds bidirectional causality between renewable energy consumption and economic growth for the whole panel.

Fiscal Deficit, National Saving and Sustainability of Economic Growth in Emerging Economies: A Dynamic GMM Panel Data Approach

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Buscemi Antonino

2012-01-01

Full Text Available The neoclassical growth models argued that the movement to steady states; technology, exogenous rate of savings, population growth and technical progress stimulate higher growth levels (Solow 1956. Contrary to the neoclassical argument, endogenous growth model argues that, in the theory of endogenous growth, government play a significant role in promoting accumulation of knowledge, research and development, public investment, human capital development, law and order can generate growth both in the short and long run. Moreover, they assumed technical progress as endogenous variable for growth (Barro 1995. This study analyze the effects of fiscal deficit on sustainability of economic growth and provided new empirical evidence on the effects of fiscal deficit on saving and sustainability of economic growth based on the assumption of endogenous growth model. We estimated using the reduced form of GMM method for dynamic panels covers 1990-2009 for three emerging countries that includes China, India and South Africa.

Financial Liberalization and Economic Growth in the North Africa Region: Cointegration Panel Analysis by DOLS and FMOLS Models

OpenAIRE

KHATTAB, Ahmed; IHADIYAN, Abid

2015-01-01

Abstract. This article aims at examining the impact of financial liberalization on the economic growth in the North African countries. The econometric study, which covers the period between 1995 and 2013, relies on a sample composed of four Northern African countries and referring to the database of the World Bank data (2013), Heritage Foundation (2013) and Financial Openness of (the Institute for international and development Economics, 2009). The estimate model of cointegration panel reveal...

The Paradoxical Relationship between Renewable Energy and Economic Growth: A Cross-National Panel Study, 1990-2013

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Ryan P Thombs

2017-08-01

Full Text Available This cross-national study employs a time-series cross-sectional Prais-Winsten regression model with panel-corrected standard errors to examine the relationship between renewable energy consumption and economic growth, and its impact on total carbon dioxide emissions and carbon dioxide emissions per unit of GDP. Findings indicate that renewable energy consumption has its largest negative effect on total carbon emissions and carbon emissions per unit of GDP in low-income countries. Contrary to conventional wisdom, renewable energy has little influence on total carbon dioxide emissions or carbon dioxide emissions per unit of GDP at high levels of GDP per capita. The findings of this study indicate the presence of a “renewable energy paradox,” where economic growth becomes increasingly coupled with carbon emissions at high levels of renewable energy, and the negative effect of economic growth on carbon emissions per unit of GDP lessens as renewable energy increases. These findings suggest that public policy should be directed at deploying renewable energy in developing countries, while focusing on non-or-de-growth strategies accompanied with renewable energy in developed nations.

Public Debt, Economic Growth and the Real Interest Rate : A Panel VAR Approach to EU and OECD Countries

NARCIS (Netherlands)

Sterken, Elmer; Ogawa, Kazuo; Tokutsu, Ichiro

2016-01-01

We investigate the causal relationship between the public debt to GDP ratio and economic growth for 31 EU and OECD countries from 1995 to 2013. A number of studies have tackled this problem, but very few make the transmission mechanism explicit in their analysis. We estimate a panel VAR model that

SECTORAL SHARES AND ECONOMIC GROWTH

DEFF Research Database (Denmark)

Ahmad, Nisar; Naveed, Amjad; Naz, Amber

2013-01-01

believe that structural change is an unimportant side effect of the economic development. On the contrary, economists associated with the World Bank and some others posit that growth is brought about by the changes in sectoral composition. The objective of this study is to empirically test...... the relationship between sectoral shares and economic growth by using the panel data for 20 developed countries. The results of the granger causality suggest that both services and agriculture sectors do granger cause economic growth, whereas industrial sector does not granger cause growth. Reverse causality does...... not hold for any of the three sectors. The results of Barro and Non-Barro regressions along with the set of control variables have suggested that services sector is negatively affecting growth, whereas both industrial and agriculture shares are positively affect economic growth....

Export and Economic Growth in the Case of the Manufacturing Industry: Panel Data Analysis of Developing Countries

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Emine Kılavuz

2012-01-01

Full Text Available The correlation between growth in export and economic growth, which is called “Export-led Growth Hypothesis” in the literature, is still a current issue in both the theoretical and empirical literature. In the present study, the effect of different classifications of export and import on economic growth in 22 developing countries in the 1998–2006 period was tested based on two models, via panel data analysis. According to the results of the first model, the analysis of which included variables such as high and low-tech manufacturing industry exports, investment and population, it was found that only two variables, high-tech manufacturing industry export and investment, have a positive and significant effect on growth. In addition to the first model which included the analysis of all variables, the second model investigated the effect of high and low-tech manufacturing industry imports on growth. The findings revealed that only high-tech manufacturing industry export, investment and low-tech manufacturing industry import have a positive and significant effect on growth.

The Eastern Partnership as a Vector of Economic Growth for EU Neighbours: Evidence from Panel Data

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Graţiela Georgiana Noja

2016-01-01

Full Text Available The global economy is significantly shaped by a complex process of globalization and regional economic integration that has induced various global transformations. In Europe, the regional integration deepening has generated significant socio-economic developments for the EU Member States, as well as for candidate countries or other EU neighbouring partners. Therefore, the research performed within this paper aims to analyse the role played by the Eastern Partnership (EaP, as a vector of economic growth for EU’s Eastern neighbours. The main focus is on the impact of international trade and capital flows emerged after 2009 (when the EaP was signed upon the economic activity of six EU partners, as well as during longer time series, respectively 1992-2015. Thus, we have developed various macroeconometric double-log and semi-log (lin-log models, processed through the correlated panels corrected standard errors (PCSE method of estimation. The results highlight a significant positive impact of international trade flows upon the economic activity, an increase in exports and imports, as well as a higher openness degree towards the global market leading to improvements in GDP per capita levels. At the same time, international investment, mainly the foreign direct investment inflows, have important positive effects upon the living standards and welfare of citizens within the six panel considered economies.

An integrated specification for the nexus of water pollution and economic growth in China: Panel cointegration, long-run causality and environmental Kuznets curve.

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Zhang, Chen; Wang, Yuan; Song, Xiaowei; Kubota, Jumpei; He, Yanmin; Tojo, Junji; Zhu, Xiaodong

2017-12-31

This paper concentrates on a Chinese context and makes efforts to develop an integrated process to explicitly elucidate the relationship between economic growth and water pollution discharge-chemical oxygen demand (COD) discharge and ammonia nitrogen (NH 3 -N), using two unbalanced panel data sets covering the period separately from 1990 to 2014, and 2001 to 2014. In our present study, the panel unit root tests, cointegration tests, and Granger causality tests allowing for cross-sectional dependence, nonstationary, and heterogeneity are conducted to examine the causal effects of economic growth on COD/NH 3 -N discharge. Further, we simultaneously apply semi-parametric fixed effects estimation and parametric fixed effects estimation to investigate environmental Kuznets curve relationship for COD/NH 3 -N discharge. Our empirical results show a long-term bidirectional causality between economic growth and COD/NH 3 -N discharge in China. Within the Stochastic Impacts by Regression on Population, Affluence and Technology framework, we find evidence in support of an inverted U-shaped curved link between economic growth and COD/NH 3 -N discharge. To the best of our knowledge, there have not been any efforts made in investigating the nexus of economic growth and water pollution in such an integrated manner. Therefore, this study takes a fresh look on this topic. Copyright © 2017 Elsevier B.V. All rights reserved.

Competitiveness and Economic Growth in Romanian Regions

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Simionescu Mihaela

2016-12-01

Full Text Available Considering the fact that Romanian economy competitiveness is not based on innovation and investment in human capital, this study makes an empirical evaluation of the impact of occupation and unemployment in Romanian counties on the economic growth. The approach based on panel vector-autoregressive (panel VAR models indicated a negative impact of occupation and activity rate in 42 Romanian counties on the economic growth during 2006-2014. On the other hand, the real economic growth was achieved at high unemployment rates. These results are contrary to previous studies in literature and are due to a structural economic crisis and to lack of labour productivity and investment in human capital. Further policy measures should focus on structural unemployment decrease, more skilled labour force according to labour market needs, lifelong learning, higher performance and quality of education system, promotion of social inclusion, poverty control.

A Panel Estimation of the Relationship Between Trade Liberalization, Economic Growth and CO2 Emissions in BRICS Countries

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Mehrara Mohsen

2013-12-01

Full Text Available In the last few years, several studies have found an inverted-U relationship between per capita income and environmental degradation. This relationship, known as the environmental Kuznets curve (EKC, suggests that environmental degradation increases in the early stages of growth, but it eventually decreases as income exceeds a threshold level. However, this paper investigation relationship between per capita CO2 emission, growth economics and trade liberalization based on econometric techniques of unit root test, co-integration and a panel data set during the period 1960-1996 for BRICS countries. Data properties were analyzed to determine their stationarity using the LLC , IPS , ADF and PP unit root tests which indicated that the series are I(1. We find a cointegration relationship between per capita CO2 emission, growth economics and trade liberalization by applying Kao panel cointegration test. The evidence indi\tcates that in the long-run trade liberalization has a positive significant impact on CO2 emissions and impact of trade liberalization on emissions growth depends on the level of income Our findings suggest that there is a quadratic relationship between relationship between real GDP and CO2 emissions for the region as a whole. The estimated long-run coefficients of real GDP and its square satisfy the EKC hypothesis in all of studied countries. Our estimation shows that the inflection point or optimal point real GDP per capita is about 5269.4 dollars. The results show that on average, sample countries are on the positive side of the inverted U curve. The turning points are very low in some cases and very high in other cases, hence providing poor evidence in support of the EKC hypothesis. Thus, our findings suggest that all BRICS countries need to sacrifice economic growth to decrease their emission levels

Spatial Econometric Research on the Relationship between Highway Construction and Regional Economic Growth in China: Evidence from the Nationwide Panel Data

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Ye, N. J.; Li, W. J.; Li, Y.; Bai, Y. F.

2017-12-01

Based on spatial panel data from 2010 to 2016 in China, this paper makes an empirical analysis on the relationship between highway construction and regional economic growth by means of spatial econometric model. The results show that there is positive spatial correlation on regional economic growth in China, and strong spatial dependences between some provinces and cities appear, specifically, Hebei, Beijing, Tianjin, Shanghai, Zhejiang and other eastern coastal areas show high-high agglomeration trend, the Pearl River Delta region presents high-low agglomeration trend; In terms of nationwide provinces and municipalities, a province’s highway construction investment for their own province and the neighboring provinces has pulling effect on economic growth to a certain extent, and the direct effect is more obvious.

Energy consumption, political regime and economic growth in sub-Saharan Africa

International Nuclear Information System (INIS)

Adams, Samuel; Klobodu, Edem Kwame Mensah; Opoku, Eric Evans Osei

2016-01-01

In this paper, we examine the relationship between energy consumption and economic growth, and how democracy moderates this relationship using panel data of 16 sub-Saharan African (SSA) countries for the period 1971–2013. Employing a panel vector autoregressive model (PVAR) in a generalized method of moments (GMM) framework, the findings support the feedback hypothesis for energy consumption and growth. Second, the interaction variable (energy consumption and democracy) is positively and significantly related to economic growth, supporting the view that democracy moderates the energy consumption and growth nexus. Further, the results provide strong evidence of a uni-directional relationship from trade openness to energy consumption. Additionally, impulse responses and variance decompositions also confirm positive feedback relationships between energy consumption and economic growth, energy prices and economic growth. - Highlights: •Feedback exists between energy consumption and economic growth. •Democracy moderates the energy consumption and growth nexus. •positive feedback between energy prices and economic growth. •Uni-directional relationship from openness to energy consumption.

Taxes and Economic Growth in Developing Countries : A Dynamic Panel Approach

OpenAIRE

NANTOB, N'Yilimon

2014-01-01

This paper looks at the effects of taxes increase on economic growth of 47 developing countries. In developing countries, there is no magic tax strategy to encourage economic growth. Some countries with high tax burdens have high growth rates and some countries with low tax burdens have low growth rates. Despite much theoretical and empirical inquiry as well as political and policy controversy, no simple answer exists concerning the relationship of taxes on economic growth in developing count...

Financial development and economic growth: literature survey and empirical evidence from sub-Saharan African countries

Directory of Open Access Journals (Sweden)

Songul Kakilli Acaravci

2011-08-01

Full Text Available In this paper we review the literature on the finance-growth nexus and investigate the causality between financial development and economic growth in Sub-Saharan Africa for the period 1975-2005. Using panel co-integration and panel GMM estimation for causality, the results of the panel co-integration analysis provide evidence of no long-run relationship between financial development and economic growth. The empirical findings in the paper show a bi-directional causal relationship between the growth of real GDP per capita and the domestic credit provided by the banking sector for the panels of 24 Sub-Saharan African countries. The findings imply that African countries can accelerate their economic growth by improving their financial systems and vice versa.

Economic Growth and Defense Spending in Greece, Turkey and Cyprus: Evidence from Cointegrated Panel Analysis

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Stylianou Tasos

2012-06-01

Full Text Available This paper investigates the nexus between economic growth and defense spending for three adjacent countries, namely Greece, Turkey and Cyprus. Greece and Cyprus, members-countries of European Union spend much more money than other member countries of EU relatively to their GDP. Turkey is in accession negotiations with EU and is among the top 15 countries with the highest military expenditure. These three countries are particularly interesting case studies because of their high military burdens and the bad relations between them (Greece and Cyprus opposite Turkey. The empirical analysis is based on panel data analysis of data over the period 1960 – 2006.

Road infrastructure, spatial spillover and county economic growth

Science.gov (United States)

Hu, Zhenhua; Luo, Shuang

2017-09-01

This paper analyzes the spatial spillover effect of road infrastructure on the economic growth of poverty-stricken counties, based on the spatial Durbin model, by using the panel data of 37 poor counties in Hunan province from 2006 to 2015. The results showed that there is a significant spatial dependence of economic growth in Poor Counties. Road infrastructure has a positive impact on economic growth, and the results will be overestimated without considering spatial factors. Considering the spatial factors, the road infrastructure will promote the economic growth of the surrounding areas through the spillover effect, but the spillover effect is restricted by the distance factor. Capital investment is the biggest factor of economic growth in poor counties, followed by urbanization, labor force and regional openness.

THE INFLUENCE OF ARAB SPRING EFFECT ON ECONOMIC GROWTH IN THE MIDDLE EAST COUNTRIES: STRUCTURAL BREAK PANEL DATA ANALYSIS

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Murat Beser

2017-09-01

Full Text Available Civil commotions that are started in December, 2010 and named as “Arab Spring” had been spread to Middle East countries and had also brought with it economic and political crises. Many economic, social and political factors that are mostly structural had been effective on starting this process. In this research, influence of Arab Spring on economic growth had been investigated with the help of cross-sectional dependency and structural break unit root test in five Middle East countries by using annual data in between 1990-2014. While cross-sectional dependency has been determined for the overall of panel, it had been reached to the conclusion that there is not structural break unit root.

Government expenditure, efficiency and economic growth: a panel ...

African Journals Online (AJOL)

Finally Generalized Methods of Moments (GMM) is applied to answer the two research questions. The results demonstrate that increasing government expenditure accelerates economic growth of low income countries in Sub Saharan Africa. However, when government expenditure is interacted with government efficiency ...

Economic Growth, Foreign Direct Investment and CO2 Emissions in China: A Panel Granger Causality Analysis

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Hongfeng Peng

2016-03-01

Full Text Available Using a sample of province-level panel data, this paper investigates the Granger causality associations among economic growth (GDP, foreign direct investment (FDI and CO2 emissions in China. By applying the bootstrap Granger panel causality approach (Kónya, 2006, we consider both cross-sectional dependence and homogeneity of different regions in China. The empirical results support that the causality direction not only works in a single direction either from GDP to FDI (in Yunnan or from FDI to GDP (in Beijing, Neimenggu, Jilin, Shanxi and Gansu, but it also works in both directions (in Henan. Moreover, we document that GDP is Granger-causing CO2 emissions in Neimenggu, Hubei, Guangxi and Gansu while there is bidirectional causality between these two variables in Shanxi. In the end, we identify the unidirectional causality from FDI to CO2 emissions in Beijing, Henan, Guizhou and Shanxi, and the bidirectional causality between FDI and CO2 emissions in Neimenggu.

Assessing links between energy consumption, freight transport, and economic growth: evidence from dynamic simultaneous equation models.

Science.gov (United States)

Nasreen, Samia; Saidi, Samir; Ozturk, Ilhan

2018-06-01

We investigate this study to examine the relationship between economic growth, freight transport, and energy consumption for 63 developing countries over the period of 1990-2016. In order to make the panel data analysis more homogeneous, we apply the income level of countries to divide the global panel into three sub-panels, namely, lower-middle income countries (LMIC), upper-middle income countries (UMIC), and high-income countries (HIC). Using the generalized method of moments (GMM), the results prove evidence of bidirectional causal relationship between economic growth and freight transport for all selected panels and between economic growth and energy consumption for the high- and upper-middle income panels. For the lower-middle income panel, the causality is unidirectional running from energy consumption to economic growth. Also, the results indicate that the relationship between freight transport and energy use is bidirectional for the high-income countries and unidirectional from freight transport to energy consumption for the upper-middle and lower-middle income countries. Empirical evidence demonstrates the importance of energy for economic activity and rejects the neo-classical assumption that energy is neutral for growth. An important policy recommendation is that there is need of advancements in vehicle technology which can reduce energy intensity from transport sector and improve the energy efficiency in transport activity which in turn allows a greater positive role of transport in global economic activity.

Political institutions as substitute for democracy: a political economy analysis of economic growth

OpenAIRE

Pereira, Carlos; Teles, Vladimir Kühl

2009-01-01

This manuscript empirically assesses the effects of political institutions on economic growth. It analyzes how political institutions affect economic growth in different stages of democratization and economic development by means of dynamic panel estimation with interaction terms. The new empirical results obtained show that political institutions work as a substitute for democracy promoting economic growth. In other words, political institutions are important for increasing economic growth, ...

Effects of oil production on economic growth in Eurasian countries: Panel ARDL approach

International Nuclear Information System (INIS)

Bildirici, Melike Elif; Kayıkçı, Fazıl

2013-01-01

This study aims at analyzing the relationship between oil production and economic growth in major oil exporting Eurasian countries; Azerbaijan, Kazakhstan, Russian Federation and Turkmenistan for 1993–2010 periods. Empirical results reveal that oil production and economic growth are cointegrated for these countries. Furthermore, there is positive bi-directional causality between oil production and economic growth both in the long run and in the short run which supports the policies about investing in energy infrastructure. -- Highlights: ► Causality between economic growth and oil production is important for energy policies. ► Oil production and GDP are cointegrated for four oil exporting Eurasian countries. ► There is positive bi-directional causality between oil production and economic growth for these countries.

Energy consumption and economic growth: The case of oil exporting countries

International Nuclear Information System (INIS)

Mehrara, Mohsen

2007-01-01

This paper examines the causal relationship between the per capita energy consumption and the per capita GDP in a panel of 11 selected oil exporting countries by using panel unit-root tests and panel cointegration analysis. The results show a unidirectional strong causality from economic growth to energy consumption for the oil exporting countries. The findings have practical policy implications for decision makers in the area of macroeconomic planning. In most major oil exporting countries, government policies keep domestic prices bellow free market level, resulting in high levels of domestic energy consumption. The results imply that the energy conservation through reforming energy price policies has no damaging repercussions on economic growth for this group of countries. (author)

Dynamic relationship between CO2 emissions, energy consumption and economic growth in three North African countries

Science.gov (United States)

Kais, Saidi; Ben Mbarek, Mounir

2017-10-01

This paper investigated the causal relationship between energy consumption (EC), carbon dioxide (CO2) emissions and economic growth for three selected North African countries. It uses a panel co-integration analysis to determine this econometric relationship using data during 1980-2012. Recently developed tests for panel unit root and co-integration tests are applied. In order to test the Granger causality, a panel Vector Error Correction Model is used. The conservation hypothesis is found; the short run panel results show that there is a unidirectional relationship from economic growth to EC. In addition, there is a unidirectional causality running from economic growth to CO2 emissions. A unidirectional relationship from EC to CO2 emissions is detected. Findings shown that there is a big interdependence between EC and economic growth in the long run, which indicates the level of economic activity and EC mutually influence each other in that a high level of economic growth leads to a high level of EC and vice versa. Similarly, a unidirectional causal relationship from EC to CO2 emissions is detected. This study opens up new insights for policy-makers to design comprehensive economic, energy and environmental policy to keep the economic green and a sustainable environment, implying that these three variables could play an important role in the adjustment process as the system changes from the long run equilibrium.

Gender Factors and Inclusive Economic Growth: The Silent Revolution

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Laura Cabeza-García

2018-01-01

Full Text Available The gender factors that trigger economic growth in both high- and low-income countries were investigated in this study. To address these gender factors, four characteristic dimensions of gender inclusion were considered: education, access to the labor market, fertility, and democracy. The relationship between economic growth and gender factors was analyzed in a sample of 127 countries. Value and robustness were added to the results using dynamic models applied to panel data while accounting for endogeneity. We conclude that high fertility in women has negative effects on economic growth. However, when women have greater access to secondary education and the labor market in conditions of equality, the effects are positive. Similarly, the access of women to active political participation has significant effects on economic growth. Overall, this study helps identify which gender factors may promote inclusive economic growth, which is economic growth achieved when both men and women are incorporated in equal conditions.

Public Debt, Corruption and Sustainable Economic Growth

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Eunji Kim

2017-03-01

Full Text Available There are many studies that look into the relationship between public debt and economic growth. It is hard to find, however, research addressing the role of corruption between these two variables. Noticing this vacancy in current literature, we strive to investigate the effect of corruption on the relationship between public debt and economic growth. For this purpose, the pooled ordinary least squares (OLS, fixed effects models and the dynamic panel generalized method of moments (GMM models (Arellano-Bond, 1991 are estimated with data of 77 countries from 1990 to 2014. The empirical results show that the interaction term between public debt and corruption is statistically significant. This confirms the hypothesis that the effect of public debt on economic growth is a function of corruption. The sign of the marginal effect is negative in corrupt countries, but public debt enhances economic growth within countries that are not corrupt, i.e., highly transparent.

Effect of economic growth on income inequality, labor absorption, and welfare

OpenAIRE

Kurniasih, Erni Panca

2017-01-01

This research aims to analyze the effect of economic growth on income inequality, labor absorption and economic welfare in Indonesian provinces. A 165 observations of panel data was analyzed using path analysis. The result showed that the economic growth has significant negative effect on income inequality in Indonesian provinces but it has no significant effect on both labor absorption and economic welfare. The labor absorption has significant positive effect on income inequality even though...

Does the Euro enhance Economic Growth?

DEFF Research Database (Denmark)

Dreyer, Johannes Kabderian; A. Schmid, Peter

2016-01-01

of economic integration in Europe. The aim of this article is to investigate whether the EU and EZ memberships enhance growth of their members. In order to perform our empirical analysis, we apply an augmented Solow growth model using convergence analysis and the panel Generalized Method of Moments (GMM...... interesting to new potential EZ members, such as some of the Central Eastern European Countries (CEE), who are about or in the process to join the common currency club....

Short-Run and Long-Run Inflation and Economic Growth Nexus in ...

African Journals Online (AJOL)

2014-10-02

Oct 2, 2014 ... panel time evidence and found negative effects of inflation on output. ... Ghana's economic growth performance as in most developing countries has been ...... Financial liberalization, financial development and growth in su-.

Does inequality in health impede economic growth?

Science.gov (United States)

Grimm, Michael

2011-01-01

This paper investigates the effects of inequality in health on economic growth in low and middle income countries. The empirical part of the paper uses an original cross-national panel data set covering 62 low and middle income countries over the period 1985 to 2007. I find a substantial and relatively robust negative effect of health inequality on income levels and income growth controlling for life expectancy, country and time fixed-effects and a large number of other effects that have been shown to matter for growth. The effect also holds if health inequality is instrumented to circumvent a potential problem of reverse causality. Hence, reducing inequality in the access to health care and to health-related information can make a substantial contribution to economic growth.

Tax Shift by Economic Functions and Its Effect on Economic Growth in the European Union

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Irena Szarowská

2015-01-01

Full Text Available The aim of the paper is to examine effects of tax shift on economic growth and provide a direct empirical evidence in the European Union (EU. It is used the Eurostat’s definition to categorize tax burden by economic functions and implicit tax rates of consumption, labour and capital are investigated. First, paper summarizes main development of tax shift in a whole EU till 2014 and followed empirical analysis is based on annual panel data of 22 EU Member States in years 1995–2012 (time span is divided into a pre-crisis and a post-crisis period. Explanatory variables are not examined in individual regressions, but the study uses Generalized Method of Moments applied on dynamic panel data and estimations are based on Arellan-Bond estimator (1991. Results confirm positive and statistically significant impact of consumption taxes and weaker but negative effect of labour taxation on economic growth. In a post-crisis period, findings report raising labour taxes as the strongest and the only significant variable. It suggests that harmful effect of labour taxation is enlarging in a time of unfavorable economic conditions. A tax shift on capital taxation has negative but often statistically insignificant impact on economic growth.

Does the internet generate economic growth, international trade, or both?

OpenAIRE

Meijers, Huub

2012-01-01

Recent cross country panel data studies find a positive impact of internet use on economic growth and a positive impact of internet use on trade. The present study challenges the first finding by showing that internet use does not explain economic growth directly in a fully specified growth model. In particular openness to international trade variables seems to be highly correlated with internet use and the findings in the literature that internet use causes trade is confirmed here, suggestin...

Public revenue, fiscal deficit and economic growth: Evidence from Asian countries

OpenAIRE

AMGAIN, Jeeban; DHAKAL, Nanda Kumar

2017-01-01

Abstract. This paper examines the impact of public revenue and fiscal deficit on economic growth in 20 Asian Countries. We use panel Autoregressive Distributed Lag Model (ARDL) to estimate both the short-run and long-run impact of the fiscal variables. The results indicate that fiscal deficit adversely affect growth both in short-run and long-run. In the long-run, deficit finance leads to debt accumulation which is also negatively associated with growth. However, panel ARDL results show that ...

How does political instability affect economic growth?

OpenAIRE

Aisen, Ari; Veiga, Francisco José

2011-01-01

The purpose of this paper is to empirically determine the effects of political instability on economic growth. Using the system-GMM estimator for linear dynamic panel data models on a sample covering up to 169 countries, and 5-year periods from 1960 to 2004, we find that higher degrees of political instability are associated with lower growth rates of GDP per capita. Regarding the channels of transmission, we find that political instability adversely affects growth by lowering the rates of pr...

Natural resources endowment and economic growth: The West African Experience

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Mohamed Jalloh

2013-06-01

Full Text Available This study aims at investigating the nexus between natural resource endowment and economic growth using a sample of West African countries. The study adopted a Barrow-type growth model to analyse the impact of natural resource wealth on economic growth. A dynamic panel estimation technique was employed using relevant data from West African Countries. The results from the panel regressions indicate that natural resource endowments have very minimal impact in terms of promoting economic growth in West Africa, more so in resource rich countries. In terms of relative effects, the results indicate that a 10% increase in natural resource export reduces growth in income per capita by approximately 0.4%. Part of the factors explaining this finding amongst others; include high corruption in the public sector as well as the frequency of civil conflicts in resource rich economies of West Africa. For the natural resources of the region to fully benefit its citizens, these countries require , urgently, to improve management of natural resource export revenues and to apply effective policy measures to eradicate/ mitigate incidences of rampant corruption in the public sector.

ASEAN economic growth, trade openness and banking-sector depth: The nexus

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Rudra P. Pradhan

2017-09-01

Full Text Available This paper investigated the linkages between banking sector depth, trade openness, and economic growth using a panel data set covering the ASEAN regional forum countries for the period 1961–2012. Using our multivariate framework, we first found that all the variables were integrated of order one and were cointegrated. Our panel-data estimation procedures offered more robust estimates than previous studies by utilizing variations between countries as well as variations over time. The results of this study indicated a general long-run equilibrium relationship among trade openness, banking sector depth and economic growth as well as a short-run relationship between these variables. Policy recommendations include those that will promote greater banking sector development as well as increased trade openness. JEL classification: O16, O43, E44, E31, Keywords: Trade openness, Banking sector depth, Economic growth, Granger causality, ASEAN regional forum countries

Is Tourism Development a Sustainable Economic Growth Strategy in the Long Run? Evidence from GCC Countries

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Abdulkarim K. Alhowaish

2016-06-01

Full Text Available The main objective of this study is to investigate the causal relationship between tourism development and economic growth in Gulf Cooperation Council (GCC countries in a multivariate model, using panel data for the period 1995–2012. The study adopts a panel Granger causality analysis approach to assess the contribution of tourism to economic growth in GCC countries as a whole, and in each individual country. In the case of GCC countries as a whole, the results show a one-way Granger causality, from economic growth to tourism growth. Furthermore, Kuwait, Saudi Arabia, Qatar, and the United Arab Emirates follow the path of economy-driven tourism growth, as hypothesized. The reverse hypothesis (i.e., tourism-led growth hypothesis holds true for Bahrain, while there is no causal relationship between tourism and economic growth in the case of Oman.

The investigation on the relationship between the problem of long-term loan and economic growth

Institute of Scientific and Technical Information of China (English)

Wenjie Du

2011-01-01

Purpose-Since the reform and opening-up policy,the long-term problem of loans became more and more serious when China's economy maintained rapid growth.The purpose of this paper is to explore the profound causes of the medium-and long-term problem of loans and the relationship between it and economic growth.Design/methodology/approach-Using panel data for 28 provinces and cities of China during 1994-2005,this paper investigates the determinants on the maturity of bank credit using threshold panel data of Hansen.In addition,using dynamics panel data,this paper investigates the effects of the maturity structure of bank credit on economic growth.Findings-The drop of bank industry concentration tends to increase the supply of long-term loans.The raise of economic growth and the increase of industrialization degree promote the demand of long-term loans,significantly.Furthermore,the threshold effects of inflation exist.When the initial inflation is lower than 3.9 percent,the raise of inflation can increase the supply of long-term loans.When the initial inflation is higher than 3.9 percent,the raise of inflation can decrease the supply of long-term loans.The increase in the supply of long-term loans can promote the economic growth.Originality/value-The paper has two innovations:first,when studying the determinants on the maturity of bank credit,using the threshold panel approach takes account of the nonlinear adjustment of inflation;second,including the maturity of bank credit into the realm of financial development studies the relationship between this and economic growth.

Export and Economic Growth in the West Balkan Countries

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Florentina Xhelili Krasniqi

2017-09-01

Full Text Available The aim of this paper is to explore the effects of exports and other variables (foreign direct investment, remittances, capital formation, and labour force on economic growth in West Balkan countries (Albania, Kosovo, Macedonia, Montenegro, Bosnia and Herzegovina and Serbia. This study utilizes a strongly balanced panel data over the 2005-2015 period for Western Balkan countries using the ordinary least squares method (OLS, ie Pooled regression model to evaluate the parameters. The relationship between export and economic growth has turned to be statistically significant and positively related for the countries under the study. Results also indicate the statistically significant positive relationship between economic growth and other variables included in the model such is remittances, capital formation, and labor. The relationship between economic growth and foreign direct investment has turned out to be statistically insignificant and negatively related.

Poverty, governance and economic growth

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Kefi Mohamed Karim

2013-07-01

Full Text Available The objective of this paper is to study the effect of governance and povrety on economic growth of a set of eight developing countries during the period 2000-2009, using a dynamic and static panel data model and a simultaneous equations model. The key findings generated from these three empirical tests stipulate a negative effect of governance on povrety and a positive effect of political instability and corruption on poverty

Financial Permeation and Economic Growth: Evidence from Sub-Saharan Africa

OpenAIRE

Inoue, Takeshi; Hamori, Shigeyuki

2013-01-01

This article empirically analyzes the role of finance in economic growth in Sub-Saharan Africa from the perspective of what is termed herein “financial permeation”. By estimating panel data on 37 countries in Sub-Saharan Africa between 2004 and 2010, we examine whether financial permeation through improved convenience and access to financial services has contributed to economic growth in this region. Empirical results clearly indicate that financial permeation has a statistically significant ...

Joint determinants of fiscal policy, income inequality and economic growth

OpenAIRE

Leonel Muinelo-Gallo; Oriol Roca-Sagalés

2012-01-01

This paper analyses the relationship between income inequality and economic growth through fiscal policy. To this end, we present and estimate two systems of structural equiation with error components through which gross income inequality determines different fiscal policy outcomes, which subsequently affects the evolution of economic growth and net income inequality. The empirical results, obtained using an unbalanced panel data of 21 high-income OCDE countries during the period 1972-2006, s...

Causal relationships between energy consumption, foreign direct investment and economic growth: Fresh evidence from dynamic simultaneous-equations models

International Nuclear Information System (INIS)

Omri, Anis; Kahouli, Bassem

2014-01-01

This paper examines the interrelationships between energy consumption, foreign direct investment and economic growth using dynamic panel data models in simultaneous-equations for a global panel consisting of 65 countries. The time component of our dataset is 1990–2011 inclusive. To make the panel data analysis more homogenous, we also investigate this interrelationship for a number of sub-panels which are constructed based on the income level of countries. In this way, we end up with three income panels; namely, high income, middle income, and low income panels. In the empirical part, we draw on the growth theory and augment the classical growth model, which consists of capital stock, labor force and inflation, with foreign direct investment and energy. Generally, we show mixed results about the interrelationship between energy consumption, FDI and economic growth. - Highlights: • We examine the energy–FDI–growth nexus for a global panel of 65 countries. • Dynamic simultaneous-equation panel data models are used to address this issue. • We also investigate this nexus for three sub-panels which are constructed based on the income level of countries. • We show mixed results about the interrelationship between the three variables

Information and communication technology use and economic growth.

Science.gov (United States)

Farhadi, Maryam; Ismail, Rahmah; Fooladi, Masood

2012-01-01

In recent years, progress in information and communication technology (ICT) has caused many structural changes such as reorganizing of economics, globalization, and trade extension, which leads to capital flows and enhancing information availability. Moreover, ICT plays a significant role in development of each economic sector, especially during liberalization process. Growth economists predict that economic growth is driven by investments in ICT. However, empirical studies on this issue have produced mixed results, regarding to different research methodology and geographical configuration of the study. This paper examines the impact of Information and Communication Technology (ICT) use on economic growth using the Generalized Method of Moments (GMM) estimator within the framework of a dynamic panel data approach and applies it to 159 countries over the period 2000 to 2009. The results indicate that there is a positive relationship between growth rate of real GDP per capita and ICT use index (as measured by the number of internet users, fixed broadband internet subscribers and the number of mobile subscription per 100 inhabitants). We also find that the effect of ICT use on economic growth is higher in high income group rather than other groups. This implies that if these countries seek to enhance their economic growth, they need to implement specific policies that facilitate ICT use.

Information and communication technology use and economic growth.

Directory of Open Access Journals (Sweden)

Maryam Farhadi

Full Text Available In recent years, progress in information and communication technology (ICT has caused many structural changes such as reorganizing of economics, globalization, and trade extension, which leads to capital flows and enhancing information availability. Moreover, ICT plays a significant role in development of each economic sector, especially during liberalization process. Growth economists predict that economic growth is driven by investments in ICT. However, empirical studies on this issue have produced mixed results, regarding to different research methodology and geographical configuration of the study. This paper examines the impact of Information and Communication Technology (ICT use on economic growth using the Generalized Method of Moments (GMM estimator within the framework of a dynamic panel data approach and applies it to 159 countries over the period 2000 to 2009. The results indicate that there is a positive relationship between growth rate of real GDP per capita and ICT use index (as measured by the number of internet users, fixed broadband internet subscribers and the number of mobile subscription per 100 inhabitants. We also find that the effect of ICT use on economic growth is higher in high income group rather than other groups. This implies that if these countries seek to enhance their economic growth, they need to implement specific policies that facilitate ICT use.

Examining the impacts of oil price changes on economic indicators: A panel approach

Science.gov (United States)

Lim, Kah Boon; Sek, Siok Kun

2017-04-01

The impact of oil price on global economy is evident from many studies and research findings. In this study, we extend the research on examining the impact of oil price changes on economic indicators in terms of economic growth and inflation by comparing different groups of economies (high income versus low income countries and oil importing versus oil exporting countries). Our main objective is to reveal if such impact varies across country income level/ development and oil dependency. In addition, we also seek to compare the impacts of oil price relative to the other factors indicators (money supply, foreign direct investment, exchange rate, government expenditure, inflation and gross domestic product) on economy. For the purpose of this study, the co-integration regression (DOLS and FMOLS) techniques are applied to the panel dataset of four groups of economies which contain 10 countries in each panel dataset. The analysis results show that oil price is not the main determinant although it can have a significant impact on inflation and economic growth across all groups of economies. The three main determinants of economic growth are exchange rate, aggregate demand and government expenditure while the determinants of inflation are aggregate supply and exchange rate. Furthermore, our result also concludes that oil price has a positive impact in oil exporting economies but it shows a negative impact in oil importing economies due to the oil dependency factor.

Causality links among renewable energy consumption, CO2 emissions, and economic growth in Africa: evidence from a panel ARDL-PMG approach.

Science.gov (United States)

Attiaoui, Imed; Toumi, Hassen; Ammouri, Bilel; Gargouri, Ilhem

2017-05-01

This research examines the causality (For the remainder of the paper, the notion of causality refers to Granger causality.) links among renewable energy consumption (REC), CO 2 emissions (CE), non-renewable energy consumption (NREC), and economic growth (GDP) using an autoregressive distributed lag model based on the pooled mean group estimation (ARDL-PMG) and applying Granger causality tests for a panel consisting of 22 African countries for the period between 1990 and 2011. There is unidirectional and irreversible short-run causality from CE to GDP. The causal direction between CE and REC is unobservable over the short-term. Moreover, we find unidirectional, short-run causality from REC to GDP. When testing per pair of variables, there are short-run bidirectional causalities among REC, CE, and GDP. However, if we add CE to the variables REC and NREC, the causality to GDP is observable, and causality from the pair REC and NREC to economic growth is neutral. Likewise, if we add NREC to the variables GDP and REC, there is causality. There are bidirectional long-run causalities among REC, CE, and GDP, which supports the feedback assumption. Causality from GDP to REC is not strong for the panel. If we test per pair of variables, the strong causality from GDP and CE to REC is neutral. The long-run PMG estimates show that NREC and gross domestic product increase CE, whereas REC decreases CE.

ECONOMETRIC EVALUATION OF THE RELATIONSHIP ECONOMIC GROWTH AND UNEMPLOYMENT IN EU & TURKEY

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Erygit Pinar

2014-07-01

Full Text Available Unemployment, in Turkey as well as in the whole, world poses huge economic problems. When considering Turkey's economy with a continued growth but a sustainable growth trend that cannot be provided and cannot be avoided in unemployment. The concepts of unemployment and economic growth in the macro and micro level are the subject of many studies. Economists look for solutions to these problems that are faced by each country; unemployment, unemployment causes, economic growths are all concepts that are discussed. Turkey's population growth rate is high, investment and capital accumulation at the desired level cannot be performed, the quality of labor as a lack of economic and political instability, informal employment, the existence of inter-regional disparities, the lack of sufficient support in agriculture contribute to the many reasons such as unemployment, the foundation raised as an issue is caused to the end. One of the biggest problems faced by Turkey's economy has long been the problems of unemployment. Many policies have been identified and implemented to combat unemployment have been studied. High rates of growth to reduce unemployment are among the most important of these policies. The relationship between unemployment and growth for the first time was examined by Arthur M. Okun (1962. The main objective of this study with the participation of Croatia in 2013 with 28 member countries of the European Union and in Turkey for the period 2001-2011 is to examine and test the relationship between economic growth and unemployment is variable. Analysis Breitung (2000, ADF Fisher and Levin, Lin and Chu (2002 panel unit root tests, Westerlund (2007 panel cointegration tests are used. Breitung (2000, ADF Fisher and Levin, Lin and Chu (2002 tests taken by the series of first differences were stagnant. In addition, error correction model established between unemployment and economic growth Hausman tests were performed, and long-term parameters have

Foreign Direct Investment, Host Country Factors and Economic Growth

OpenAIRE

Edna Maeyen Solomon

2011-01-01

This paper analyses how the levels of economic development, human capital, financial development and the qualities of the economic and political environments in host countries simultaneously affects the impact of aggregate inflows of Foreign Direct Investment (FDI) on economic growth. Multiple interaction terms are employed between inward FDI and each of the host country factors mentioned above. The System GMM estimator is applied to a panel of 111 countries from 1981 to 2005. The results sho...

Banks and economic growth in developing countries: What about Islamic banks?

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Saida Daly

2016-12-01

Full Text Available Islamic banks (IBs have a significant role in the growth of gross domestic product of the developing countries. The Islamic participatory schemes integrate the assets of lenders and borrowers. They allow enable IBs to lend on a longer term basis to create projects with higher risk-return profiles and, thus, to support economic growth. Our investigation examines the contribution of Islamic finance in economic growth. Using a panel data-set, we compare between IBs and conventional banks in their adding to economic growth. We studied a sample of 120 banks between 2005 and 2012. By means of three ordinary least-square regressions, our empirical investigation reveals that the development of non-usurious banks supports economic growth. Moreover, the cooperation between the two financing modes improves economic growth. The integration of this new funding never neglected the role of the conventional method of financing. The practice of IBs is also away from their theoretical mode in terms of participation results.

ECONOMIC GROWTH AND TAXATION IN CENTRAL AND EASTERN EUROPE

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Cristina BOROVINA (COJOCARU

2016-05-01

Full Text Available In the context of the economic crisis that started in the United States in 2007, economic growth has become of great importance for the countries affected by the crisis further to their confrontation with lower growth rates of GDP per capita. At national level, governments are searching for that mix of optimal economic policies that would revive economies on the upward and also sustainable trend. One of the key policies in this regard, especially for the countries in Central and Eastern Europe which intend to adopt the euro currency, is the tax policy. Its main instruments are taxes. In this paper, we pay special attention to these instruments and to the connection that they have with the economic growth. This paper is divided into three parts. The first part presents a few ideas related to the importance of taxes at national level, the second part is an analysis in terms of taxation of the Central and Eastern Europe countries, while the third part consists of a panel-type assessment of the relation between economic growth and taxation level.

Determinants of Economic Growth: Empirical Evidence from Russian Regions

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Svetlana Ledyaeva

2008-06-01

Full Text Available A modification of Barro and Sala-i-Martin empirical framework of growth model is specified to examine determinants of per capita growth in 74 Russian regions during period of 1996-2005. We utilize both panel and cross-sectional data. Results imply that in general regional growth in 1996-2005 is explained by the initial level of region's economic development, the 1998 financial crisis, domestic investments, and exports. Growth convergence between poor and rich regions in Russia was not found for the period studied.

The impacts of tourism, energy consumption and political instability on economic growth in the MENA countries

International Nuclear Information System (INIS)

Tang, Chor Foon; Abosedra, Salah

2014-01-01

Using panel data of 24 countries in the Middle East and North African (MENA) region from 2001 to 2009, the purpose of this study is to examine the impacts of tourism, energy consumption and political instability on economic growth within the neoclassical growth framework. To address the objective of this study, we utilise both the static panel data approach as well as the dynamic generalised method of moments (GMM) estimator to examine the impact of candidate variables. Our results show that energy consumption and tourism significantly contribute to the economic growth of countries in the MENA region. Hence, our study lends some support to the existence of the tourism-led growth and energy-led growth hypotheses in the region. In line with our expectation, our estimation results also reveal that political instability impedes the process of economic growth and development in the MENA region. Therefore, macroeconomic policies to promote expansion in tourism and energy consumption will directly stimulate economic growth. Additionally, efforts to help the region overcome its history of political instability would attract more international tourist arrivals and further invigorate economic growth. - Highlights: • Tourism and energy consumption have positive impacts on GDP growth. • GDP reacts negatively to political instability. • Energy-led growth and tourism-led growth hypotheses are validated in MENA countries. • Supporting tourism, energy use and political stability will enhance economic growth

EFFECTS OF THE ECONOMIC FREEDOMS ON THE ECONOMIC GROWTH: EVIDENCE FROM THE EU AND COMCEC COUNTRIES (1996-2015

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HALİL İBRAHİM AYDIN

2017-06-01

Full Text Available In this research, the effects of the economic freedoms on the economic growth for EU and COMCEC countries at different development/income level are econometrically analyzed via panel data analysis for the period of 1996- 2014 by being considered the improvement of economic growth theories for the key determinants of economic growth. From this aspect, it is aimed at this research that to evaluate the effects of the economic freedoms on the long termed economic growth performances and income level differences of EU and COMCEC countries which have different statuses in terms of economic freedoms and income level indicators. It is determined at the end of the study that the economic freedoms have a positive and statistically significant effect on the economic growth of EU countries in investigation period, on the other hand, these freedoms have not any effect on the economic growth of COMCEC countries. Moreover, the existence of a one-way causality relation operates from economic freedoms to the economic growth in EU countries is specified while there is any causality link found between these freedoms and the economic growth for the countries in COMCEC group. All these results indicate that also the economic freedoms besides the physical human capital accumulation, in other words, whether the EU and COMCEC countries have a market economy adopts outward-oriented liberal fiscal policies plays a major role in differentiating the income levels or the economic growth performances.

Clean energy, non-clean energy, and economic growth in the MIST countries

International Nuclear Information System (INIS)

Pao, Hsiao-Tien; Li, Yi-Ying; Hsin-Chia Fu

2014-01-01

This paper explores the causal relationship between clean (renewable/nuclear) and non-clean energy consumption and economic growth in emerging economies of the MIST (Mexico, Indonesia, South Korea, and Turkey) countries. The panel co-integration tests reveal that there is a long-term equilibrium relationship among GDP, capital formation, labor force, renewable/nuclear, and fossil fuel energy consumption. The panel causality results indicate that (1) there is a positive unidirectional short-run causality from fossil fuel energy consumption to economic growth with a bidirectional long-run causality; (2) there is a unidirectional long-run causality from renewable energy consumption to economic growth with positive bidirectional short-run causality, and a long-run causality from renewable to fossil fuel energy consumption with negative short-run feedback effects; and (3) there is a bidirectional long-run causality between nuclear energy consumption and economic growth and a long-run causality from fossil fuel energy consumption to nuclear energy consumption with positive short-run feedback effects. These suggest that MIST countries should be energy-dependent economies and that energy conservation policies may depress their economic development. However, developing renewable and nuclear energy is a viable solution for addressing energy security and climate change issues, and creating clean and fossil fuel energy partnerships could enhance a sustainable energy economy. - Highlights: • This novel study can provide more robust bases to strengthen sustainable energy policy settings. • Fossil fuel/nuclear energy use and economic growth is bidirectional causality. • Renewable energy consumption long term causes economic growth. • There is substitutability between renewable and fossil fuel energy. • Clean and non-clean energy partnerships can achieve a sustainable energy economy

The global pattern of urbanization and economic growth: evidence from the last three decades.

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Chen, Mingxing; Zhang, Hua; Liu, Weidong; Zhang, Wenzhong

2014-01-01

The relationship between urbanization and economic growth has been perplexing. In this paper, we identify the pattern of global change and the correlation of urbanization and economic growth, using cross-sectional, panel estimation and geographic information systems (GIS) methods. The analysis has been carried out on a global geographical scale, while the timescale of the study spans the last 30 years. The data shows that urbanization levels have changed substantially during these three decades. Empirical findings from cross-sectional data and panel data support the general notion of close links between urbanization levels and GDP per capita. However, we also present significant evidence that there is no correlation between urbanization speed and economic growth rate at the global level. Hence, we conclude that a given country cannot obtain the expected economic benefits from accelerated urbanization, especially if it takes the form of government-led urbanization. In addition, only when all facets are taken into consideration can we fully assess the urbanization process.

The global pattern of urbanization and economic growth: evidence from the last three decades.

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Mingxing Chen

Full Text Available The relationship between urbanization and economic growth has been perplexing. In this paper, we identify the pattern of global change and the correlation of urbanization and economic growth, using cross-sectional, panel estimation and geographic information systems (GIS methods. The analysis has been carried out on a global geographical scale, while the timescale of the study spans the last 30 years. The data shows that urbanization levels have changed substantially during these three decades. Empirical findings from cross-sectional data and panel data support the general notion of close links between urbanization levels and GDP per capita. However, we also present significant evidence that there is no correlation between urbanization speed and economic growth rate at the global level. Hence, we conclude that a given country cannot obtain the expected economic benefits from accelerated urbanization, especially if it takes the form of government-led urbanization. In addition, only when all facets are taken into consideration can we fully assess the urbanization process.

Non-Linear Relationship between Economic Growth and CO₂ Emissions in China: An Empirical Study Based on Panel Smooth Transition Regression Models.

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Wang, Zheng-Xin; Hao, Peng; Yao, Pei-Yi

2017-12-13

The non-linear relationship between provincial economic growth and carbon emissions is investigated by using panel smooth transition regression (PSTR) models. The research indicates that, on the condition of separately taking Gross Domestic Product per capita (GDPpc), energy structure (Es), and urbanisation level (Ul) as transition variables, three models all reject the null hypothesis of a linear relationship, i.e., a non-linear relationship exists. The results show that the three models all contain only one transition function but different numbers of location parameters. The model taking GDPpc as the transition variable has two location parameters, while the other two models separately considering Es and Ul as the transition variables both contain one location parameter. The three models applied in the study all favourably describe the non-linear relationship between economic growth and CO₂ emissions in China. It also can be seen that the conversion rate of the influence of Ul on per capita CO₂ emissions is significantly higher than those of GDPpc and Es on per capita CO₂ emissions.

Reasearch on Regional Differences Between China's Economic Growth and Export Trade Based on the Analysis of a Random Effects Model

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Rui Chen

2007-06-01

Full Text Available This paper analyzes the factors that influence the economic growth of the provinces of China by means of a Panel Data Model. Traditional analytical methods of economic growth are compared with a Panel Data Model. The results of empirical research indicate that the changes of fixed assets investment, gross domestic export, and macroeconomic policies will affect China's GDP. It is finally concluded that export is the driving force behind economic growth in China. This conclusion is quite different from traditional analysis.

Decentralization and public expenditure: Does special local autonomy affect regional economic growth?

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Martapina Anggai

2018-04-01

Full Text Available This study examines the relationship between public expenditure within regional autonomy policy and economic growth in West Papua and Papua provinces. We distinguish two kinds of expenditure’s decentralization – operational and capital – and also private expenditures. We use an unbalanced panel data over the period of 2007-2010 to investigate those expenditures, whether they enhance regional economic growth or not. We find that the government’s operating and private expenditures have a positive effect on local economic growth, but there is no relationship between capital expenditure’s decentralization on economic growth. The findings did not conform to a-priori efficiency expectations, which suggest needing to reform regional autonomy and fiscal decentralization policy in both provinces.

The Impact of Government Expenditure on Economic Growth: A Study of Asian Countries

OpenAIRE

K. P. K. S. Lahirushan; W. G. V. Gunasekara

2015-01-01

Main purpose of this study is to identify the impact of government expenditure on economic growth in Asian Countries. Consequently, main objective is to analyze whether government expenditure causes economic growth in Asian countries vice versa and then scrutinizing long-run equilibrium relationship exists between them. The study completely based on secondary data. The methodology being quantitative that includes econometrical techniques of cointegration, panel fixed effe...

The Effect of Economic Growth, Urbanization, and Industrialization on Fine Particulate Matter (PM2.5) Concentrations in China.

Science.gov (United States)

Li, Guangdong; Fang, Chuanglin; Wang, Shaojian; Sun, Siao

2016-11-01

Rapid economic growth, industrialization, and urbanization in China have led to extremely severe air pollution that causes increasing negative effects on human health, visibility, and climate change. However, the influence mechanisms of these anthropogenic factors on fine particulate matter (PM 2.5 ) concentrations are poorly understood. In this study, we combined panel data and econometric methods to investigate the main anthropogenic factors that contribute to increasing PM 2.5 concentrations in China at the prefecture level from 1999 to 2011. The results showed that PM 2.5 concentrations and three anthropogenic factors were cointegrated. The panel Fully Modified Least Squares and panel Granger causality test results indicated that economic growth, industrialization, and urbanization increased PM 2.5 concentrations in the long run. The results implied that if China persists in its current development pattern, economic growth, industrialization and urbanization will inevitably lead to increased PM 2.5 emissions in the long term. Industrialization was the principal factor that affected PM 2.5 concentrations for the total panel, the industry-oriented panel and the service-oriented panel. PM 2.5 concentrations can be reduced at the cost of short-term economic growth and industrialization. However, reducing the urbanization level is not an efficient way to decrease PM 2.5 pollutions in the short term. The findings also suggest that a rapid reduction of PM 2.5 concentrations relying solely on adjusting these anthropogenic factors is difficult in a short-term for the heavily PM 2.5 -polluted panel. Moreover, the Chinese government will have to seek much broader policies that favor a decoupling of these coupling relationships.

Climate change and economic growth: a heterogeneous panel data approach.

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Sequeira, Tiago Neves; Santos, Marcelo Serra; Magalhães, Manuela

2018-05-31

Climate change is a global phenomenon. Its impact on economic growth must therefore be analyzed in accordance with its (time-varying) common effects. We present an econometric analysis that evaluates this effect taking into account its global nature. Contrary to previous evidence that ignores the global effects, we obtain that the rising temperature has not decreased growth in real GDP per capita in the second half of the twentieth century for the world countries. However, we obtain a negative effect of rising temperatures and a positive effect of rising precipitation in poor countries. This positive effect of rising precipitation is also confirmed for hot and temperate countries.

Globalization and economic growth: empirical evidence on the role of complementarities.

Science.gov (United States)

Samimi, Parisa; Jenatabadi, Hashem Salarzadeh

2014-01-01

This study was carried out to investigate the effect of economic globalization on economic growth in OIC countries. Furthermore, the study examined the effect of complementary policies on the growth effect of globalization. It also investigated whether the growth effect of globalization depends on the income level of countries. Utilizing the generalized method of moments (GMM) estimator within the framework of a dynamic panel data approach, we provide evidence which suggests that economic globalization has statistically significant impact on economic growth in OIC countries. The results indicate that this positive effect is increased in the countries with better-educated workers and well-developed financial systems. Our finding shows that the effect of economic globalization also depends on the country's level of income. High and middle-income countries benefit from globalization whereas low-income countries do not gain from it. In fact, the countries should receive the appropriate income level to be benefited from globalization. Economic globalization not only directly promotes growth but also indirectly does so via complementary reforms.

Globalization and economic growth: empirical evidence on the role of complementarities.

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Parisa Samimi

Full Text Available This study was carried out to investigate the effect of economic globalization on economic growth in OIC countries. Furthermore, the study examined the effect of complementary policies on the growth effect of globalization. It also investigated whether the growth effect of globalization depends on the income level of countries. Utilizing the generalized method of moments (GMM estimator within the framework of a dynamic panel data approach, we provide evidence which suggests that economic globalization has statistically significant impact on economic growth in OIC countries. The results indicate that this positive effect is increased in the countries with better-educated workers and well-developed financial systems. Our finding shows that the effect of economic globalization also depends on the country's level of income. High and middle-income countries benefit from globalization whereas low-income countries do not gain from it. In fact, the countries should receive the appropriate income level to be benefited from globalization. Economic globalization not only directly promotes growth but also indirectly does so via complementary reforms.

Impact of Insurance Market on Economic Growth in Post-Transition Countries

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Phutkaradze Jaba

2014-12-01

Full Text Available The purpose of this work is to identify whether the development of an insurance market is linked to economic growth in former transition countries. A multiple regression analysis is employed to estimate the insurance-growth relationship, using a cross-country panel dataset analysis tracking annual total insurance penetration in 10 countries over the 2000-2012 period, and applying a fixed effect model to test the hypothesis that this linkage is demonstrably positive. The results show a negative and statistically non-significant correlation between insurance and GDP growth, suggesting a lack of evidence that insurance promotes economic growth in post-transition economies.

The relationship between energy and economic growth: Empirical evidence from 66 countries

International Nuclear Information System (INIS)

Sharma, Susan Sunila

2010-01-01

In this study, we use dynamic panel data models to examine the impact of electricity and non-electricity variables on economic growth for a global panel consisting of 66 countries. The time component of our dataset is 1986-2005 inclusive. We also estimate this relationship for four regional panels; namely, East/South Asian and the Pacific region, Europe and Central Asian region, Latin America and Caribbean region, and Sub-Saharan, North Africa and Middle Eastern region. In total, we use six proxies for energy. The empirical analysis is based on a sound theoretical framework, in that we draw on growth theory and augment the classical growth model, which consists of inflation, capital stock, labour force and trade, with energy. Generally, the results on the impact of energy are mixed. (author)

The Non-Linear Effect of Corporate Taxes on Economic Growth

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Huňady Ján

2015-03-01

Full Text Available The paper deals with the problem of taxation and its potential impact on economic growth and presents some new empirical insights into this topic. The main aim of the paper is to verify an assumed nonlinear impact of corporate tax rates on economic growth. Based on the theory of public finance and taxation, we hypothesize that at relatively low tax rates it is possible that the impact of taxation on economic growth become slightly positive. On the other hand when the tax rates are higher a negative impact of taxation on economic growth could be expected. Despite the fact that the most of the existing studies find a negative linear relationship between these variables, we can also find strong support for a non-linear relationship from several theoretical models as well as some empirical studies. Based on panel data fixed-effects econometric models, we, as well, find empirical evidence for a non-linear relationship between nominal and effective corporate tax rates and economic growth. Our data consists of annual observations for the period 1999 to 2011 for EU Member States. Based on the results, we also estimated the optimal level of the corporate tax rate in terms of maximizing economic growth in the average of the EU countries.

Contribution of services to economic growth: Kaldor’s fifth law?

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Adilson Giovanini

2017-08-01

Full Text Available Purpose: This study questions whether there is a Kaldor’s fifth law and tests whether the size of the intermediate services sector contributes to the growth of the industrial sector. Originality/Value: The laws proposed by Kaldor consider that the industrial sector contributes to economic growth and affirm that the growth of this sector depends on the existing demand for industrial products. If this new law is corroborated we have the initial evidences that the growth of the service sector contributes to the growth of the industry. Design/methodological/approach: The existence of this new law is tested through the estimation of panel VAR models for eight developed countries in the period 1980-2009. Findings: The growth of the service sector causes Granger to increase industrial productivity, industrial density and economic complexity. The causality test shows that there is a bidirectional causal relationship between the growth of the service sector and the industrial density and between the growth of the service sector and the Economic Complexity Index.

Greenhouse gas emissions, energy consumption and economic growth: A panel cointegration analysis from Canadian industrial sector perspective

International Nuclear Information System (INIS)

Hamit-Haggar, Mahamat

2012-01-01

This paper investigates the long-run and the causal relationship between greenhouse gas emissions, energy consumption and economic growth for Canadian industrial sectors over the period 1990–2007. The empirical findings suggest that in the long-run equilibrium, energy consumption has a positive and statistically significant impact on greenhouse gas emissions whereas a non-linear relationship is found between greenhouse gas emissions and economic growth, consistent with the environmental Kuznets curve. The short-run dynamics conveys that there is a unidirectional Granger causality running from energy consumption to greenhouse gas emissions; from economic growth to greenhouse gas emissions and a weak unidirectional causality running from greenhouse gas emissions to energy consumption; from economic growth to energy consumption. In the long-run however, there seems to be a weak one way causality flowing from energy consumption and economic growth to greenhouse gas emissions. - Highlights: ► A long-run and a causal relationship between greenhouse gas emissions, energy consumption and economic growth is investigated. ► Energy consumption has a positive impact on greenhouse gas emissions in the long run. ► Unidirectional causality runs from energy consumption and economic growth to greenhouse gas emissions. ► A weak unidirectional causality runs from greenhouse gas emissions and economic growth to energy consumption.

The impact of CO2 emissions on economic growth: evidence from selected higher CO2 emissions economies.

Science.gov (United States)

Azam, Muhammad; Khan, Abdul Qayyum; Bin Abdullah, Hussin; Qureshi, Muhammad Ejaz

2016-04-01

The main purpose of this work is to analyze the impact of environmental degradation proxied by CO2 emissions per capita along with some other explanatory variables namely energy use, trade, and human capital on economic growth in selected higher CO2 emissions economies namely China, the USA, India, and Japan. For empirical analysis, annual data over the period spanning between 1971 and 2013 are used. After using relevant and suitable tests for checking data properties, the panel fully modified ordinary least squares (FMOLS) method is employed as an analytical technique for parameter estimation. The panel group FMOLS results reveal that almost all variables are statistically significant, whereby test rejects the null hypotheses of non cointegration, demonstrating that all variables play an important role in affecting the economic growth role across countries. Where two regressors namely CO2 emissions and energy use show significantly negative impacts on economic growth, for trade and human capital, they tend to show the significantly positive impact on economic growth. However, for the individual analysis across countries, the panel estimate suggests that CO2 emissions have a significant positive relationship with economic growth for China, Japan, and the USA, while it is found significantly negative in case of India. The empirical findings of the study suggest that appropriate and prudent policies are required in order to control pollution emerging from areas other than liquefied fuel consumption. The ultimate impact of shrinking pollution will help in supporting sustainable economic growth and maturation as well as largely improve society welfare.

Ecological economics and economic growth.

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Victor, Peter A

2010-01-01

Boulding's 1966 paper on the economics of spaceship Earth established the framework for ecological economics and an understanding of economic growth. In ecological economics, economies are conceptualized as open subsystems of the closed biosphere and are subject to biophysical laws and constraints. Economic growth measured as an increase in real gross domestic product (GDP) has generally been associated with increases in the use of energy and materials and the generation of wastes. Scale, composition, and technology are the proximate determinants of environmental impacts. They are often reduced to two: scale (GDP) and intensity (impact per unit GDP). New work described in this paper defines "green" growth as intensity that declines faster than scale increases. Similarly, "brown" growth occurs when intensity declines more slowly than increases in scale, and "black" growth happens when both scale and intensity increase. These concepts are then related to the environmental Kuznets curve, which can be understood as a transition from brown to green growth. Ecological economics provides a macroperspective on economic growth. It offers broad policy principles, and it challenges the primacy of economic growth as a policy objective, but many important questions remain.

The Relationship between Export and Growth: Panel Data Evidence from Turkish Sectors

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Alper Aslan

2018-04-01

Full Text Available The aim of this study is to examine the impact of sectoral exports on economic growth in Turkey over the period 2000–2015. To this end, empirical models are estimated using panel data techniques in which quarterly data are gathered for eight sectors. Findings in the case of the pooled panel indicate the validity of the export-led growth hypothesis. Disaggregated evidences, on the other hand, reveal the validity of export-led growth hypothesis in the case of (i agriculture and forestry; (ii fishing; (iii mining and quarrying; (iv manufacturing; (v electricity, gas and water supply; and (vi wholesale and retail trade while it is found to be invalid in the case of (i real estate, renting and business activities; and (ii other community, social and personal service activities. The sectors that have the highest growth contributions are listed as follows: (i agriculture and forestry; (ii mining and quarrying; and (iii manufacturing. Causality results also provide a strong support in favor of an export-led growth hypothesis for four sectors in addition to the feedback hypothesis which is valid for three sectors.

Relationship of Economic Growth with Tourism Sector

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Abdul Holik

2016-06-01

Full Text Available This research aims to analyze the impact of  foreign tourists towards the economic growth. It was conducted from 1995 until 2012 on five ASEAN member countrie: Indonesia, Malaysia, Thailand, Philippines, and Singapore. It used the quantitative method; it is one-way random effect of panel regression. The data, which is functioned as dependent variables, were taken from WDI (World Development Indicator of the World Bank for the Gross Domestic Product (GDP. Meanwhile, the data of revenue from the foreign tourist visit (Rec, the number of foreign tourist arrival (Arr, and the exchange rate (Xrate are functioned as the independent variables. Based on the research result, there is evidence that international tourism can increase the economic growth in those countries. The three independent variables have a positive and  significant impact to the dependent variables. Based on the findings, the governments of five ASEAN member countries should be able to maintain the sustainability of tourism sector in order to be stronger and to have global market-orientation. In fact, tourism services can support the  economic growth because the potential of those ASEAN countries cannot be taken lightly.

Relationship of Economic Growth with Tourism Sector

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Abdul Holik

2016-06-01

Full Text Available This research aims to analyze the impact of foreign tourists towards the economic growth. It was conducted from 1995 until 2012 on five ASEAN member countrie: Indonesia, Malaysia, Thailand, Philippines, and Singapore. It used the quantitative method; it is one-way random effect of panel regression. The data, which is functioned as dependent variables, were taken from WDI (World Development Indicator of the World Bank for the Gross Domestic Product (GDP. Meanwhile, the data of revenue from the foreign tourist visit (Rec, the number of foreign tourist arrival (Arr, and the exchange rate (Xrate are functioned as the independent variables. Based on the research result, there is evidence that international tourism can increase the economic growth in those countries. The three independent variables have a positive and significant impact to the dependent variables. Based on the findings, the governments of five ASEAN member countries should be able to maintain the sustainability of tourism sector in order to be stronger and to have global market-orientation. In fact, tourism services can support the economic growth because the potential of those ASEAN countries cannot be taken lightly.

Economic growth, energy conservation and emissions reduction: A comparative analysis based on panel data for 8 Asian-Pacific countries

International Nuclear Information System (INIS)

Niu Shuwen; Ding Yongxia; Niu Yunzhu; Li Yixin; Luo Guanghua

2011-01-01

This study was conducted to evaluate the causality between energy consumption, GDP growth and carbon emissions for eight Asia-Pacific countries from 1971 to 2005 using the panel data. The results indicate that there are long-run equilibrium relationships between these variables. Additionally, causality from energy consumption to CO 2 emissions was observed generally, but there were some opposite relationships also. Parameter estimations of the panel data model indicate that there are great differences in the carbon emissions, the efficiencies of energy use, carbon emissions of unit GDP and unit energy consumption between developed and developing countries. The base carbon emissions, per capita energy consumption and efficiency of energy use in developing countries are far lower than in developed countries; however, the CO 2 emissions per unit of energy use is higher. Although developing countries may reduce their CO 2 emission per unit energy use, total energy consumption will rise rapidly with economic development. Thus, developing countries must determine how to undergo economic growth while conserving energy and reducing emissions. To respond to global climate change, it is necessary to develop innovative technology for energy use, transform the energy structure and conduct the clean development mechanism. - Research highlights: → There is a complex nexus between GDP-energy consumption and CO 2 emissions, the causalities from energy consumption to CO 2 emissions are observed generally, but there are some opposite relationships also. → There are great differences in the carbon emissions, the efficiencies of energy use, carbon emissions of unit GDP and unit energy consumption between developed and developing countries. → There is a large potential for carbon emission reduction in the developing countries through transforming the energy structure, improving energy utilization efficiency and controlling the total energy. → To respond to global climate change

Energy consumption-economic growth relationship and carbon dioxide emissions in China

Energy Technology Data Exchange (ETDEWEB)

Fei Li, E-mail: lfly2004@yahoo.com.c [Institute of Geographic Sciences and Natural Resources Research, Chinese Academy of Sciences, Beijing 100101 (China); Dong Suocheng; Xue Li [Institute of Geographic Sciences and Natural Resources Research, Chinese Academy of Sciences, Beijing 100101 (China); Liang Quanxi [Jinan University, Guangzhou 510632 (China); Yang Wangzhou [Institute of Geographic Sciences and Natural Resources Research, Chinese Academy of Sciences, Beijing 100101 (China)

2011-02-15

This paper applies the panel unit root, heterogeneous panel cointegration and panel-based dynamic OLS to re-investigate the co-movement and relationship between energy consumption and economic growth for 30 provinces in mainland China from 1985 to 2007. The empirical results show that there is a positive long-run cointegrated relationship between real GDP per capita and energy consumption variables. Furthermore, we investigate two cross-regional groups, namely the east China and west China groups, and get more important results and implications. In the long-term, a 1% increase in real GDP per capita increases the consumption of energy by approximately 0.48-0.50% and accordingly increases the carbon dioxide emissions by about 0.41-0.43% in China. The economic growth in east China is energy-dependent to a great extent, and the income elasticity of energy consumption in east China is over 2 times that of the west China. At present, China is subject to tremendous pressures for mitigating climate change issues. It is possible that the GDP per capita elasticity of carbon dioxide emissions would be controlled in a range from 0.2 to 0.3 by the great effort. - Research Highlights: {yields} The long-run cointegrated relationship between real GDP per capita and energy consumption in China is examined. {yields} GDP per capita elasticity of carbon dioxide emissions is estimated. {yields} Economic growth in east China is energy-dependent to a great extent, and relies on the consumption of the energy more than the west China.

Energy consumption-economic growth relationship and carbon dioxide emissions in China

International Nuclear Information System (INIS)

Fei Li; Dong Suocheng; Xue Li; Liang Quanxi; Yang Wangzhou

2011-01-01

This paper applies the panel unit root, heterogeneous panel cointegration and panel-based dynamic OLS to re-investigate the co-movement and relationship between energy consumption and economic growth for 30 provinces in mainland China from 1985 to 2007. The empirical results show that there is a positive long-run cointegrated relationship between real GDP per capita and energy consumption variables. Furthermore, we investigate two cross-regional groups, namely the east China and west China groups, and get more important results and implications. In the long-term, a 1% increase in real GDP per capita increases the consumption of energy by approximately 0.48-0.50% and accordingly increases the carbon dioxide emissions by about 0.41-0.43% in China. The economic growth in east China is energy-dependent to a great extent, and the income elasticity of energy consumption in east China is over 2 times that of the west China. At present, China is subject to tremendous pressures for mitigating climate change issues. It is possible that the GDP per capita elasticity of carbon dioxide emissions would be controlled in a range from 0.2 to 0.3 by the great effort. - Research Highlights: → The long-run cointegrated relationship between real GDP per capita and energy consumption in China is examined. → GDP per capita elasticity of carbon dioxide emissions is estimated. → Economic growth in east China is energy-dependent to a great extent, and relies on the consumption of the energy more than the west China.

Energy consumption-economic growth relationship and carbon dioxide emissions in China

Energy Technology Data Exchange (ETDEWEB)

Fei, Li; Dong, Suocheng; Xue, Li; Yang, Quanxi [Institute of Geographic Sciences and Natural Resources Research, Chinese Academy of Sciences, Beijing 100101 (China); Liang [Jinan University, Guangzhou 510632 (China); Wangzhou

2011-02-15

This paper applies the panel unit root, heterogeneous panel cointegration and panel-based dynamic OLS to re-investigate the co-movement and relationship between energy consumption and economic growth for 30 provinces in mainland China from 1985 to 2007. The empirical results show that there is a positive long-run cointegrated relationship between real GDP per capita and energy consumption variables. Furthermore, we investigate two cross-regional groups, namely the east China and west China groups, and get more important results and implications. In the long-term, a 1% increase in real GDP per capita increases the consumption of energy by approximately 0.48-0.50% and accordingly increases the carbon dioxide emissions by about 0.41-0.43% in China. The economic growth in east China is energy-dependent to a great extent, and the income elasticity of energy consumption in east China is over 2 times that of the west China. At present, China is subject to tremendous pressures for mitigating climate change issues. It is possible that the GDP per capita elasticity of carbon dioxide emissions would be controlled in a range from 0.2 to 0.3 by the great effort. (author)

The impact and determinants of the energy paradigm on economic growth in European Union.

Science.gov (United States)

Andrei, Jean Vasile; Mieila, Mihai; Panait, Mirela

2017-01-01

Contemporary economies are strongly reliant on energy and analyzing the determining factors that trigger the changes in energy paradigm and their impact upon economic growth is a topical research subject. Our contention is that energy paradigm plays a major role in achieving the sustainable development of contemporary economies. In order to prove this the panel data methodology of research was employed, namely four panel unit root tests (LLC, IPS, F-ADF and F-PP) aiming to reveal the connections and relevance among 17 variables denoting energy influence on economic development. Moreover, it was introduced a specific indicator to express energy consumption per capita. Our findings extend the classical approach of the changes in energy paradigm and their impact upon economic growth and offer a comprehensive analysis which surpasses the practices and policy decisions in the field.

Economic Growth and CO2 Emissions in the European Union

International Nuclear Information System (INIS)

Bengochea-Morancho, A.; Martinez-Zarzoso, I.; Higon-Tamarit, F.

2001-01-01

This paper examines the relationship between economic growth and CO 2 emissions in the European Union. A panel data analysis for the period 1981 to 1995 is applied in order to estimate the relationship between Gross Domestic Product (GDP) growth and CO 2 emissions in ten selected European countries. The analysis shows important disparities between the most industrialised countries and the rest. The results do not seem to support a uniform policy to control emissions; they rather indicate that a reduction in emissions should be achieved by taking into account the specific economic situation and the industrial structure of each EU member state. 20 refs

Environmental logistics performance indicators affecting per capita income and sectoral growth: evidence from a panel of selected global ranked logistics countries.

Science.gov (United States)

Khan, Syed Abdul Rehman; Qianli, Dong; SongBo, Wei; Zaman, Khalid; Zhang, Yu

2017-01-01

The objective of the study is to examine the long-run and causal relationship between environmental logistics performance indicators (ELPI) and growth-specific factors in a panel of 15 selected global ranked logistics countries over a period of 2007-2015. This study is exclusive as we utilized a number of LPI factors including logistics performance, logistics competence, and logistics infrastructure with mediation of sustainable factors, i.e., carbon dioxide (CO 2 ), fossil fuel, and greenhouse gas (GHG) emissions in a region. The results show that the per capita income, industry, manufacturing, and service share to GDP is affected by CO 2 emissions and GHG emissions. Logistics competence and infrastructure promote economic growth and sectoral value added, while energy demand and FDI inflows both are prerequisite for sustainable agriculture in a region. The causal relationships confirm that more energy demand results in an increase in economic growth, industry value added, and the service sector (i.e., feedback hypothesis), while the sustainable supply chain system improves energy demand, FDI inflows, economic growth, and sectoral growth (i.e., conservation hypothesis) in a panel of countries.

Empirical Study towards the Drivers of Sustainable Economic Growth in EU-28 Countries

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Daniel Ştefan Armeanu

2017-12-01

Full Text Available This study aims at empirically investigating the drivers of sustainable economic growth in EU-28 countries. By means of panel data regression models, in the form of fixed and random effects models, alongside system generalized method of moments, we examine several drivers of real gross domestic product (GDP growth rate, as follows: higher education, business environment, infrastructure, technology, communications, and media, population lifestyle, and demographic changes. As regards higher education, the empirical results show that expenditure per student in higher education and traditional 18–22 year-old students are positively linked with sustainable economic growth, whereas science and technology graduates negatively influence real GDP growth. In terms of business environment, total expenditure on research and development and employment rates of recent graduates contributes to sustainable development, but corruption perceptions index revealed a negative association with economic growth. As well, the results provide support for a negative influence of infrastructure abreast technological measures on economic growth. Besides, we found a negative connection between old-age dependency ratio and sustainable economic growth.

Coal consumption and economic growth in China

International Nuclear Information System (INIS)

Li, Raymond; Leung, Guy C.K.

2012-01-01

The aim of this paper is to re-examine the relationship between coal consumption and real GDP of China with the use of panel data. This paper applies modern panel data techniques to help shed light on the importance of the heterogeneity among different regions within China. Empirical analyses are conducted for the full panel as well as three subgroups of the panel. The empirical results show that coal consumption and GDP are both I(1) and cointegrated in all regional groupings. Heterogeneity is found in the GDP equation of the full panel. The regional causality tests reveal that the coal consumption–GDP relationship is bidirectional in the Coastal and Central regions whereas causality is unidirectional from GDP to coal consumption in the Western region. Thus, energy conservation measures will not adversely affect the economic growth of the Western region but such measures will likely encumber the economy of the Coastal and Central regions, where most of the coal intensive industries are concentrated. - Highlights: ► We investigate the relationship between coal consumption and GDP in China. ► Panel data are used to account for the potential heterogeneity across different regions. ► Bidirectional causality is found in the Eastern and Central regions. ► Unidirectional causality from GDP to coal consumption is found in the Western region.

Financial Development and Output Growth: A Panel Study for Asian Countries

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Sangjoon Jun

2012-03-01

Full Text Available This paper investigates the relationship between financial markets and output growth for a panel of 27 Asian countries over 1960-2009. It utilizes the recently-developed panel cointegration techniques to test and estimate the long-run equilibrium relationship between real GDP and financial development proxies. Real GDP and financial development variables are found to have unit roots and to be cointegrated, based on various panel unit root tests and panel cointegration tests. We find that there is a statistically significant positive bi-directional cointegrating relationship between financial development and output growth by three distinct methods of panel cointegration estimation. Empirical findings suggest that financial market development promotes output growth and in turn output growth stimulates further financial development.

Short- and long-run causality between energy consumption and economic growth: Evidence across regions in China

International Nuclear Information System (INIS)

Herrerias, M.J.; Joyeux, R.; Girardin, E.

2013-01-01

Highlights: • We investigate the relationship between energy and economic growth across Chinese regions. • We examine short- and long-run causality. • We use panel cointegration techniques. • We find that causality runs in the long-run from economic growth to energy consumption from 1999 to 2009. • We conclude that policies for conserving energy can be adopted without interrupting the path of growth. - Abstract: The relationship between energy consumption and economic growth has created a large body of research in the energy-economics literature. In this paper, we investigate such a relation in the case of Chinese regions from 1995 to 2009. The majority of previous studies have ignored the regional dimension and the cross-sectional dependence of provinces. Besides, different energy policies adopted by the government have influenced energy intensity over time, showing improvement in the 1990s and deterioration from 2000 onwards. Thus, it is necessary to examine these two periods separately. Moreover, a detailed disaggregation of total energy consumption into electricity, coal, coke, and crude oil consumption and its linkage with economic growth may provide new insights for the design of energy policy across Chinese regions. We use panel techniques to test the direction of the causality in the long- and short-run between these different types of energy consumption and economic growth. Our results are mixed from 1995 to 2009 due the aforementioned break around 1999. However, in all cases our estimations provide empirical evidence that from 1999 to 2009 there is unidirectional causation from economic growth to energy consumption in the long-run. Therefore, energy-saving policies can be adopted without interrupting the path of growth

China and India: Openness, Trade and Effects on Economic Growth

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Marelli, Enrico

2011-06-01

Full Text Available The purpose of this paper is to analyse the economic growth of China and India in terms of their integration in the global economy. We begin with a discussion of some stylized facts concerning their recent economic growth, the most significant institutional reforms, with particular reference to trade relations, and their impact on their economic development. We then propose a descriptive analysis of economic growth, opening up of the economies and trade specialisation, by comparing the features and trends of the two countries (by considering trade and foreign direct investment data. We have also estimated some econometric relations between economic growth and trade/openness, with the addition of control variables (such as the gross fixed capital formation. We initially used a panel data model for the two countries, to be estimated with fixed effects; to test for reverse causality, we re-estimated the fixed effects model by 2SLS (with the inclusion of specific instrumental variables. The effect on economic growth (in terms of GDP per capita of our variables of interest - Openness and FDI - remains positive and statistically significant in all specifications, which confirms our findings even if we treat these variables as endogenous variables. The results prove the positive growth effects, for the two countries, of opening up and integrating in the world economy. Note that the robust growth of these two "giants" has contained the initial impact of the recent global crisis and is now sustaining the recovery of the entire world economy. Other policy relevant implications are discussed in the concluding section.

Public Debt, Public Investment and Economic Growth in Mexico

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Isaac Sánchez-Juárez

2016-03-01

Full Text Available The primary objective of this article is to answer the following two research questions: has the growing public debt of state governments promoted increased public investment? If the answer is yes, then does any increase in public investment lead to more growth in the Mexican states? Dynamic Models of panel data and the Generalized Method of Moments, with information for 32 states from 1993 to 2012, were used for this purpose. The econometric results confirmed that public debt is positively correlated with public investment and that this in turn generates economic growth. This does not mean that a good economic policy strategy has been followed, since the marginal positive impact of public investment, and therefore the public debt on the production per person, is reduced (1% increase in the interaction between public investment and public debt variable causes a 0.0005% increase in economic growth. This suggests deviations from the debt contracted for purposes other than production, which could lead to a situation of unsustainability of state public finances in the medium term.

Energy consumption and economic growth revisited in African countries

Energy Technology Data Exchange (ETDEWEB)

Eggoh, Jude C., E-mail: comlanvi-jude.eggoh@univ-orleans.fr [Laboratoire d' Economie d' Orleans (LEO), Universite d' Orleans, Rue de Blois, BP: 6739, 45067 Orleans Cedex 2 (France); Bangake, Chrysost [Laboratoire d' Economie d' Orleans (LEO), Universite d' Orleans, Rue de Blois, BP: 6739, 45067 Orleans Cedex 2 (France); Universite d' Artois and Laboratoire EQUIPPE, Lille 1, FSES, 59655 Villeneuve d' Ascq Cedex (France); Rault, Christophe [Laboratoire d' Economie d' Orleans (LEO), Universite d' Orleans, Rue de Blois, BP: 6739, 45067 Orleans Cedex 2 (France); Toulouse Business School (France)

2011-11-15

The aim of this paper is to provide new empirical evidence on the relationship between energy consumption and economic growth for 21 African countries over the period from 1970 to 2006, using recently developed panel cointegration and causality tests. The countries are divided into two groups: net energy importers and net energy exporters. It is found that there exists a long-run equilibrium relationship between energy consumption, real GDP, prices, labor and capital for each group of countries as well as for the whole set of countries. This result is robust to possible cross-country dependence and still holds when allowing for multiple endogenous structural breaks, which can differ among countries. Furthermore, we find that decreasing energy consumption decreases growth and vice versa, and that increasing energy consumption increases growth, and vice versa, and that this applies for both energy exporters and importers. Finally, there is a marked difference in the cointegration relationship when country groups are considered. - Highlights: > We assess the energy consumption and economic growth nexus in 21 African countries. > There exists a long-run relationship between energy consumption and economic growth. > This result is robust to cross-country dependence and for structural breaks. > Our findings finally support the feedback hypothesis of bidirectional causality.

Heterogeneity of growth in the west Balkans and emerging Europe: A dynamic panel data model approach

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Josifidis Kosta

2012-01-01

Full Text Available This paper explores the heterogeneity of growth in the Western Balkan and Emerging European economies. For that purpose, growth determinants are estimated in the period 1997-2009 by dynamic panel data models. The chosen period provides a comparison for the model results with those estimated for the period up to 2007 in order to analyze changes caused by the global instability. According to the main findings of the paper, macroeconomic stabilization and structural reforms still matter in determining economic growth, but foreign direct investments and economic integrations seem to have the most important role in stimulating growth in the observed countries. Moreover, significant positive effects of foreign direct investments and economic integrations produce differences in growth paths between Emerging European and Western Balkan economies. Sharp decrease of foreign inflows in 2008 determined contractions of growth rates firstly in Emerging European economies with subsequent spill-over on the Western Balkan economies during 2009. Consequently, in the period of global instability, differences between two groups of economies become even more obvious.

Low Schooling for Girls, Slower Growth for All? Cross-Country Evidence on the Effect of Gender Inequality in Education on Economic Development

OpenAIRE

Klasen, Stephan

2002-01-01

Using cross-country and panel regressions, this article investigates how gender inequality in education affects long-term economic growth. Such inequality is found to have an effect on economic growth that is robust to changes in specifications and controls for potential endogeneities. The results suggest that gender inequality in education directly affects economic growth by lowering the ...

Determinants and Economic Impacts of North-South and South-South FDI in ASEAN : Panel Regression Analyses

OpenAIRE

Peseth, Seng

2015-01-01

This paper uses panel data of 10 ASEAN countries from 1995 to 2008 and studies the cross-country and industrial distribution of North and South FDI, investigates host country-specific determinants of the inflows of total FDI, North FDI and South FDI, and also compares the effects of North and South FDI on economic and industrial growth in the region.

Changes in taxation and their impact on economic growth in the European Union

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Irena Szarowská

2011-01-01

Full Text Available The aim of the paper is to analyze changes in taxation and their impact on economic growth in the European Union. The analysis is performed on adjusted annual panel data of 24 European Union countries in a period 1995–2008. Panel regression with fixed effects is used as a basic method of research. The panel regression is based on analysis the effect of total tax quota changes on GDP growth in model 1, of changes in its components (social contribution, direct and indirect tax quotas in model 2 and of personal and corporate income tax quota changes in model 3. Results of empirical tests verify statistically significant negative effect of tax burden on GDP growth. Total tax quota increased by 1% decreases the GDP growth rate by 0.29% in the same year. Estimations confirm a statistically significant negative effect of direct taxes on GDP growth as well. A cut in the direct tax quota by 1% raises the GDP growth rate by 0.43%. The model also presents a high negative impact of an increase in the corporate income tax quota on GDP growth (a value of the regression coefficient is minus 1.28%. The effect of social contribution quota on GDP growth is not statistically significant in any estimation.

On the role of credit in agricultural growth: An Iranian panel data analysis

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Saeed Hosseini Nejad

2018-01-01

Full Text Available Credit is considered as a major stimulus of economic growth especially in developing economies. Given the critical role of agriculture in Iranian economy in one hand and lack of credit on the other hand, study on the association between credit and sector growth is necessary. Based on a provincial panel data set, this article identifies econometrically the impact of credits provided by non-governmental funds on agricultural growth for the period 2008–2014. Main results introduce credit as a driver of sector growth as one percent rise in credits allocated leads, on average, to 0.59 percent increase in agricultural growth. Same effect is found for labor, public investment and energy inputs. Public supportive policies aiming at empowering of private funds and increase their capital, is recommended.

Economical evaluation of damaged vacuum insulation panels in buildings

Science.gov (United States)

Kim, Y. M.; Lee, H. Y.; Choi, G. S.; Kang, J. S.

2015-12-01

In Korea, thermal insulation standard of buildings have been tightened annually to satisfy the passive house standard from the year 2009. The current domestic policies about disseminating green buildings are progressively conducted. All buildings should be the zero energy building in the year 2025, obligatorily. The method is applied to one of the key technologies for high-performance insulation for zero energy building. The vacuum insulation panel is an excellent high performance insulation. But thermal performance of damaged vacuum insulation panels is reduced significantly. In this paper, the thermal performance of damaged vacuum insulation panels was compared and analyzed. The measurement result of thermal performance depends on the core material type. The insulation of building envelope is usually selected by economic feasibility. To evaluate the economic feasibility of VIPs, the operation cost was analyzed by simulation according to the types and damaged ratio of VIPs

Economic growth, biodiversity loss and conservation effort.

Science.gov (United States)

Dietz, Simon; Adger, W Neil

2003-05-01

This paper investigates the relationship between economic growth, biodiversity loss and efforts to conserve biodiversity using a combination of panel and cross section data. If economic growth is a cause of biodiversity loss through habitat transformation and other means, then we would expect an inverse relationship. But if higher levels of income are associated with increasing real demand for biodiversity conservation, then investment to protect remaining diversity should grow and the rate of biodiversity loss should slow with growth. Initially, economic growth and biodiversity loss are examined within the framework of the environmental Kuznets hypothesis. Biodiversity is represented by predicted species richness, generated for tropical terrestrial biodiversity using a species-area relationship. The environmental Kuznets hypothesis is investigated with reference to comparison of fixed and random effects models to allow the relationship to vary for each country. It is concluded that an environmental Kuznets curve between income and rates of loss of habitat and species does not exist in this case. The role of conservation effort in addressing environmental problems is examined through state protection of land and the regulation of trade in endangered species, two important means of biodiversity conservation. This analysis shows that the extent of government environmental policy increases with economic development. We argue that, although the data are problematic, the implications of these models is that conservation effort can only ever result in a partial deceleration of biodiversity decline partly because protected areas serve multiple functions and are not necessarily designated to protect biodiversity. Nevertheless institutional and policy response components of the income biodiversity relationship are important but are not well captured through cross-country regression analysis.

The foreign capital flows and economic growth in Sub-Saharan Africa : the role of financial markets and institutional quality

OpenAIRE

Ifo, Duba Jarso

2017-01-01

There are competing theories when comes to the effect of foreign capital inflows on the recipient country’s economic growth. The foreign capital inflows to the sub-saharan region has shown significant growth over last two decades which coincided with the relative economic progress in the region. This study investigated the impact of foreign capital flows on Economic growth of Sub- Saharan African countries. System Generalized Methodwas employed on 33 cross country panel in the period 19...

Export and Economic Growth in the West Balkan Countries

OpenAIRE

Florentina Xhelili Krasniqi; Rahmije Mustafa Topxhiu

2017-01-01

The aim of this paper is to explore the effects of exports and other variables (foreign direct investment, remittances, capital formation, and labour force) on economic growth in West Balkan countries (Albania, Kosovo, Macedonia, Montenegro, Bosnia and Herzegovina and Serbia). This study utilizes a strongly balanced panel data over the 2005-2015 period for Western Balkan countries using the ordinary least squares method (OLS), ie Pooled regression model to evaluate the parameters. The rela...

Population growth and economic growth.

Science.gov (United States)

Narayana, D L

1984-01-01

This discussion of the issues relating to the problem posed by population explosion in the developing countries and economic growth in the contemporary world covers the following: predictions of economic and social trends; the Malthusian theory of population; the classical or stationary theory of population; the medical triage model; ecological disaster; the Global 2000 study; the limits to growth; critiques of the Limits to Growth model; nonrenewable resources; food and agriculture; population explosion and stabilization; space and ocean colonization; and the limits perspective. The Limits to Growth model, a general equilibrium anti-growth model, is the gloomiest economic model ever constructed. None of the doomsday models, the Malthusian theory, the classical stationary state, the neo-Malthusian medical triage model, the Global 2000 study, are so far reaching in their consequences. The course of events that followed the publication of the "Limits to Growth" in 1972 in the form of 2 oil shocks, food shock, pollution shock, and price shock seemed to bear out formally the gloomy predictions of the thesis with a remarkable speed. The 12 years of economic experience and the knowledge of resource trends postulate that even if the economic pressures visualized by the model are at work they are neither far reaching nor so drastic. Appropriate action can solve them. There are several limitations to the Limits to Growth model. The central theme of the model, which is overshoot and collapse, is unlikely to be the course of events. The model is too aggregative to be realistic. It exaggerates the ecological disaster arising out of the exponential growth of population and industry. The gross underestimation of renewable resources is a basic flaw of the model. The most critical weakness of the model is its gross underestimation of the historical trend of technological progress and the technological possiblities within industry and agriculture. The model does correctly emphasize

Economic growth, ecological economics, and wilderness preservation

Science.gov (United States)

Brian Czech

2000-01-01

Economic growth is a perennial national goal. Perpetual economic growth and wilderness preservation are mutually exclusive. Wilderness scholarship has not addressed this conflict. The economics profession is unlikely to contribute to resolution, because the neoclassical paradigm holds that there is no limit to economic growth. A corollary of the paradigm is that...

Economics of Sustainable Development. Competitiveness and Economic Growth

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Dorel AILENEI

2011-02-01

Full Text Available Economic growth is one of the most important issues of humanity. Both in national economies and world economy, recession and prosperity periods are regularly succeeding with different amplitudes. But beyond these fluctuations and their effects, the results are important: performance and economic growth. Because of the problematical issue of economic growth, the authors are trying to critically reflect on the economic growth concept and on its implications on the praxis area. Although there is a large literature about economic growth modeling, it is intriguing that there still are some serious obstacles for conceptualization and praxis. Only the simple fact that the economic growth process needs serious thinking on the time dimension is sufficient for understanding the real difficulties of this problematical issue. As for the economic growth praxis, a clear analysis of the interests system within an economy is needed. Without trying to find miraculous solutions for the economic growth issue, the authors suggest a clear and correct analysis of this important subject.

A PANEL REGRESSION ANALYSIS OF HUMAN CAPITAL RELEVANCE IN SELECTED SCANDINAVIAN AND SE EUROPEAN COUNTRIES

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Filip Kokotovic

2016-06-01

Full Text Available The study of human capital relevance to economic growth is becoming increasingly important taking into account its relevance in many of the Sustainable Development Goals proposed by the UN. This paper conducted a panel regression analysis of selected SE European countries and Scandinavian countries using the Granger causality test and pooled panel regression. In order to test the relevance of human capital on economic growth, several human capital proxy variables were identified. Aside from the human capital proxy variables, other explanatory variables were selected using stepwise regression while the dependant variable was GDP. This paper concludes that there are significant structural differences in the economies of the two observed panels. Of the human capital proxy variables observed, for the panel of SE European countries only life expectancy was statistically significant and it had a negative impact on economic growth, while in the panel of Scandinavian countries total public expenditure on education had a statistically significant positive effect on economic growth. Based upon these results and existing studies, this paper concludes that human capital has a far more significant impact on economic growth in more developed economies.

Greenhouse Gas Emissions, Energy Consumption and Economic Growth: A Panel Cointegration Analysis for 16 Asian Countries.

Science.gov (United States)

Lu, Wen-Cheng

2017-11-22

This research investigates the co-movement and causality relationships between greenhouse gas emissions, energy consumption and economic growth for 16 Asian countries over the period 1990-2012. The empirical findings suggest that in the long run, bidirectional Granger causality between energy consumption, GDP and greenhouse gas emissions and between GDP, greenhouse gas emissions and energy consumption is established. A non-linear, quadratic relationship is revealed between greenhouse gas emissions, energy consumption and economic growth, consistent with the environmental Kuznets curve for these 16 Asian countries and a subsample of the Asian new industrial economy. Short-run relationships are regionally specific across the Asian continent. From the viewpoint of energy policy in Asia, various governments support low-carbon or renewable energy use and are reducing fossil fuel combustion to sustain economic growth, but in some countries, evidence suggests that energy conservation might only be marginal.

Greenhouse Gas Emissions, Energy Consumption and Economic Growth: A Panel Cointegration Analysis for 16 Asian Countries

Science.gov (United States)

2017-01-01

This research investigates the co-movement and causality relationships between greenhouse gas emissions, energy consumption and economic growth for 16 Asian countries over the period 1990–2012. The empirical findings suggest that in the long run, bidirectional Granger causality between energy consumption, GDP and greenhouse gas emissions and between GDP, greenhouse gas emissions and energy consumption is established. A non-linear, quadratic relationship is revealed between greenhouse gas emissions, energy consumption and economic growth, consistent with the environmental Kuznets curve for these 16 Asian countries and a subsample of the Asian new industrial economy. Short-run relationships are regionally specific across the Asian continent. From the viewpoint of energy policy in Asia, various governments support low-carbon or renewable energy use and are reducing fossil fuel combustion to sustain economic growth, but in some countries, evidence suggests that energy conservation might only be marginal. PMID:29165399

Greenhouse Gas Emissions, Energy Consumption and Economic Growth: A Panel Cointegration Analysis for 16 Asian Countries

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Wen-Cheng Lu

2017-11-01

Full Text Available This research investigates the co-movement and causality relationships between greenhouse gas emissions, energy consumption and economic growth for 16 Asian countries over the period 1990–2012. The empirical findings suggest that in the long run, bidirectional Granger causality between energy consumption, GDP and greenhouse gas emissions and between GDP, greenhouse gas emissions and energy consumption is established. A non-linear, quadratic relationship is revealed between greenhouse gas emissions, energy consumption and economic growth, consistent with the environmental Kuznets curve for these 16 Asian countries and a subsample of the Asian new industrial economy. Short-run relationships are regionally specific across the Asian continent. From the viewpoint of energy policy in Asia, various governments support low-carbon or renewable energy use and are reducing fossil fuel combustion to sustain economic growth, but in some countries, evidence suggests that energy conservation might only be marginal.

The Impact of Tourism on Economic Growth in the Western Balkan Countries: An Empirical Analysis

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Prof. Dr Nasir Selimi

2017-06-01

Full Text Available Purpose: The purpose of this research paper is to empirically analyse the effects of tourism on economic growth in Western Balkan countries (Albania, Bosnia and Herzegovina, Croatia, FYROM, Montenegro and Serbia. Design/Methodology/Approach: The empirical analysis consists of 17-year panel data of 6 countries over the period 1998 to 2014. Several models are analysed using the panel regression econometric techniques. The study investigates the random and fixed effects, as well as individual heterogeneity across those countries. Also, the Hausman Taylor IV estimator is used as the most appropriate model for this analysis. The real income per capita of the sample countries is modelled as dependent on the lagged income per capita, tourist arrivals, tourism receipts, FDI stock, exports and government expenditures. Findings: The estimation results in all types of models, and indicate that tourism has a positive and significant impact on economic growth in the Western Balkan countries. The Hausman Taylor IV model suggests that for every 1% increase of tourist arrivals, the output will increase approximately by 0.08%. Research limitations/implications: Although the Hausman Taylor IV model performs well, the results should be interpreted with caution. The analysis has its limitations; firstly, the total number of observations is relatively small for a panel regression analysis; secondly, the problem of endogenity is not completely avoided. However, the study implies that these countries should enhance efforts for joint tourism sector policies to engender economic sustainability. Originality/Value: To our best knowledge, this is the first attempt of estimating the effects of tourism on economic growth in the Western Balkan countries using the Hausman Taylor IV model.

The Impact of Taxation on Economic Growth: Case Study of OECD Countries

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Macek Rudolf

2015-01-01

Full Text Available The aim of this paper is to evaluate the impact of individual types of taxes on the economic growth by utilizing regression analysis on the OECD countries for the period of 2000–2011. The impact of taxation is integrated into growth models by its impact on the individual growth variables, which are capital accumulation and investment, human capital and technology. The analysis in this paper is based on extended neoclassical growth model of Mankiw, Romer and Weil (1992, and for the verification of relation between taxation and economic growth the panel regression method is used. The taxation rate itself is not approximated only by traditional tax quota, which is characteristic by many insufficiencies, but also by the alternative World Tax Index which combines hard and soft data. It is evident from the results of both analyses that corporate taxation followed by personal income taxes and social security contribution are the most harmful for economic growth. Concurrently, in case of the value added tax approximated by tax quota, the negative impact on economic growth was not confirmed, from which it can be concluded that tax quota, in this case as the indicator of taxation, fails. When utilizing World Tax Index, a negative relation between these two variables was confirmed, however, it was the least quantifiable. The impact of property taxes was statistically insignificant. Based on the analysis results it is evident that in effort to stimulate economic growth in OECD countries, economic-politic authorities should lower the corporate taxation and personal income taxes, and the loss of income tax revenues should be compensated by the growth of indirect tax revenues.

Economic growth and emissions reconsidering the empirical basis of environmental Kuznets curves

International Nuclear Information System (INIS)

De Bruyn, S.M.; Van den Bergh, J.C.J.M.; Opschoor, J.B.

1998-01-01

Recent empirical research indicates that certain types of emissions follow an inverted-U or environmental Kuznets curve (EKC) as income grows. This regularity has been interpreted as a possible de-linking of economic growth and patterns of certain pollutants for developed economies. In this paper the empirical basis of this result is investigated, by considering some statistical particularities of the various EKC studies performed. It is argued that the inverted-U relationship between income and emissions estimated from panel data need not hold for specific individual countries over time. Based on insights from 'intensity-of-use' analysis in resource economics an alternative growth model is specified and estimated for three types of emissions (CO 2 , NO x and SO 2 ) in four countries (Netherlands, UK, USA and Western Germany). It is found that the time patterns of these emissions correlate positively with economic growth and that emission reductions may have been achieved as a result of structural and technological changes in the economy. 'Sustainable growth' is defined as the rate of economic growth that does not lead to growth in emissions. Its rate is calculated for each type of emission and country, based on estimated parameter values. The resulting indicators reflect a balance between the positive influence of growth and negative influence of structural change and technological progress on emission levels

THE INSTITUTIONAL BARRIERS’ IMPACT ON THE ECONOMIC GROWTH IN THE INTERNATIONAL ECONOMIC INTEGRATION

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Iryna Prykhodko

2015-11-01

Full Text Available The purpose of the paper. In our study we try to assess the causality link between a number of the international economic integration politico-economic factors, institutions and basic production factors with the growth of the economy. We form a sample of 18 post-socialist countries, including Central and Eastern Europe (CEE countries-members the European Union, and the rest of CEE non-members countries and CIS countries, who have not acquired the membership in the EU, including Ukraine. The time period of our study is 23 years, starting from 1991 – the year of independence of Ukraine till 2013 – the last year for which statistics are published for our group of a corresponding list of indicators that make up our interest. In the estimating equation we use econometric analysis panel data by least squares method with fixed effects transformation to eliminate countries’ heterogeneity. In the study we use such determinant of the institutions quality as the Index of Economic Freedom (Heritage Foundation, and we investigate various components of the Index of Economic Freedom (freedom of ownership, freedom of trade, freedom from corruption, freedom of investment. We assume that institutions towards freedom of foreign trade and reducing corruption will have a greater effect on the economy of the investigated countries. It is advisable to attach to the international economic integration politico-economic factors the indicator of foreign trade taxation as a measure of tariff barriers, international aid programs of the foreign donors and the European institutions to assess their role for the economic growth of the countries surveyed, and we take into account the capital and the labor as the basic factors of production. Methodology. The methods of synthesis, logic, abstraction and analysis are used in the study. On a sample of 18 post-socialist countries (CEE and CIS for the period of 23 years (1991-2013 we had conducted the econometric panel analysis

Economic Growth, Economic Freedom, and Governance

OpenAIRE

Cebula, Richard; Ekstrom, Marcus

2008-01-01

This exploratory study examines the impact of various forms of economic freedom and various dimensions of governance, as well as a number of economic factors, on economic growth among OECD nations. Empirical estimation finds that the natural log of per capita purchasing-power-parity adjusted real GDP in OECD nations is positively impacted by business freedom, monetary freedom, trade freedom, and property rights security. Economic growth is found to be negatively affected by perceived governme...

Earthquakes and economic growth

OpenAIRE

Fisker, Peter Simonsen

2012-01-01

This study explores the economic consequences of earthquakes. In particular, it is investigated how exposure to earthquakes affects economic growth both across and within countries. The key result of the empirical analysis is that while there are no observable effects at the country level, earthquake exposure significantly decreases 5-year economic growth at the local level. Areas at lower stages of economic development suffer harder in terms of economic growth than richer areas. In addition,...

CO2 emissions, energy consumption and economic growth nexus in MENA countries: Evidence from simultaneous equations models

International Nuclear Information System (INIS)

Omri, Anis

2013-01-01

This paper examines the nexus between CO 2 emissions, energy consumption and economic growth using simultaneous-equations models with panel data of 14 MENA countries over the period 1990–2011. Our empirical results show that there exists a bidirectional causal relationship between energy consumption and economic growth. However, the results support the occurrence of unidirectional causality from energy consumption to CO 2 emissions without any feedback effects, and there exists a bidirectional causal relationship between economic growth and CO 2 emissions for the region as a whole. The study suggests that environmental and energy policies should recognize the differences in the nexus between energy consumption and economic growth in order to maintain sustainable economic growth in the MENA region. - Graphical abstract: Interaction between CO 2 , energy and GDP for MENA countries. - Highlights: • We investigate the energy–environment–GDP nexus for 14 MENA countries. • We have used simultaneous equations models estimated by the GMM-estimator. • Results show bi-directional causal relationship between energy consumption and economic growth. • There is uni-directional causality from energy consumption to CO 2 . • There exists bi-directional causal relationship between economic growth and pollutant emissions

The impact of economic growth on health care utilization: a longitudinal study in rural Vietnam.

Science.gov (United States)

Thoa, Nguyen Thi Minh; Thanh, Nguyen Xuan; Chuc, Nguyen Thi Kim; Lindholm, Lars

2013-03-16

In many developing countries, including Vietnam, out-of-pocket payment is the principal source of health financing. The economic growth is widening the gap between rich and poor people in many aspects, including health care utilization. While inequities in health between high- and low-income groups have been well investigated, this study aims to investigate how the health care utilization changes when the economic condition is changing at a household level. We analysed a panel data of 11,260 households in a rural district of Vietnam. Of the sample, 74.4% having an income increase between 2003 and 2007 were defined as households with economic growth. We used a double-differences propensity score matching technique to compare the changes in health care expenditure as percentage of total expenditure and health care utilization from 2003 to 2005, from 2003 to 2007, and from 2005 to 2007, between households with and without economic growth. Households with economic growth spent less percentage of their expenditure for health care, but used more provincial/central hospitals (higher quality health care services) than households without economic growth. The differences were statistically significant. The results suggest that households with economic growth are better off also in terms of health services utilization. Efforts for reducing inequalities in health should therefore consider the inequality in income growth over time.

Renewable and non-renewable energy consumption and economic growth: Evidence from MENA Net Oil Exporting Countries.

OpenAIRE

Kahia, Montassar; Ben Aissa, Mohamed Safouane

2014-01-01

This study investigate the relationship between renewable and non-renewable energy consumption and economic growth in a sample of 13 MENA Net Oil Exporting Countries covering the period 1980–2012 within a multivariate panel framework. The Pedroni (1999, 2004), Kao (1999) as well as the Westerlund (2007) panel cointegration tests indicate that there is a long-run equilibrium relationship between real GDP, renewable energy consumption, non-renewable energy consumption, real gross fixed capital ...

Industrial policy, production efficiency improvement and the Chinese county economic growth

Directory of Open Access Journals (Sweden)

Wang Zhenhua

2016-12-01

Full Text Available This study aims at analyzing the difference in the level of economic development between China’s counties from the two perspectives of industrial policy and production efficiency. Based on panel data of 1830 Chinese counties, this study employs the new classical economic growth theory framework to analyze the counties’ economic growth by the perpetual inventory method, Malmquist index, among others. The results show that the economy of the counties exhibits δ convergence since 2004, and the absolute differences in the different counties are expanding. Industrial policy ensures the additional deepening of the level of capital in the county. Additionally, a substantial difference was observed between the agricultural sector and the non-agricultural sector, whereby the total factor productivity and the technical efficiency are on the rise, resulting in the phenomenon of dual paths of technological progress. In summary, the capital deepening difference between the sectors, production efficiency, and dual paths of technological progress owing to the counties’ industrial policy are the basic reasons for the regional differences in the level of economic development in China.

A Spatial Panel Data Analysis of Economic Growth, Urbanization, and NOx Emissions in China

Science.gov (United States)

Ge, Xiangyu; Zhou, Yanli; Liu, Songlin

2018-01-01

Is nitrogen oxides emissions spatially correlated in a Chinese context? What is the relationship between nitrogen oxides emission levels and fast-growing economy/urbanization? More importantly, what environmental preservation and economic developing policies should China’s central and local governments take to mitigate the overall nitrogen oxides emissions and prevent severe air pollution at the provincial level in specific locations and their neighboring areas? The present study aims to tackle these issues. This is the first research that simultaneously studies the nexus between nitrogen oxides emissions and economic development/urbanization, with the application of a spatial panel data technique. Our empirical findings suggest that spatial dependence of nitrogen oxides emissions distribution exists at the provincial level. Through the investigation of the existence of an environmental Kuznets curve (EKC) embedded within the Stochastic Impacts by Regression on Population, Affluence, and Technology (STIRPAT) framework, we conclude something interesting: an inverse N-shaped EKC describes both the income-nitrogen oxides nexus and the urbanization-nitrogen oxides nexus. Some well-directed policy advice is provided to reduce nitrogen oxides in the future. Moreover, these results contribute to the literature on development and pollution. PMID:29641500

A Spatial Panel Data Analysis of Economic Growth, Urbanization, and NOx Emissions in China.

Science.gov (United States)

Ge, Xiangyu; Zhou, Zhimin; Zhou, Yanli; Ye, Xinyue; Liu, Songlin

2018-04-11

Abstract : Is nitrogen oxides emissions spatially correlated in a Chinese context? What is the relationship between nitrogen oxides emission levels and fast-growing economy/urbanization? More importantly, what environmental preservation and economic developing policies should China's central and local governments take to mitigate the overall nitrogen oxides emissions and prevent severe air pollution at the provincial level in specific locations and their neighboring areas? The present study aims to tackle these issues. This is the first research that simultaneously studies the nexus between nitrogen oxides emissions and economic development/urbanization, with the application of a spatial panel data technique. Our empirical findings suggest that spatial dependence of nitrogen oxides emissions distribution exists at the provincial level. Through the investigation of the existence of an environmental Kuznets curve (EKC) embedded within the Stochastic Impacts by Regression on Population, Affluence, and Technology (STIRPAT) framework, we conclude something interesting: an inverse N-shaped EKC describes both the income-nitrogen oxides nexus and the urbanization-nitrogen oxides nexus. Some well-directed policy advice is provided to reduce nitrogen oxides in the future. Moreover, these results contribute to the literature on development and pollution.

A Spatial Panel Data Analysis of Economic Growth, Urbanization, and NOx Emissions in China

Directory of Open Access Journals (Sweden)

Xiangyu Ge

2018-04-01

Full Text Available Is nitrogen oxides emissions spatially correlated in a Chinese context? What is the relationship between nitrogen oxides emission levels and fast-growing economy/urbanization? More importantly, what environmental preservation and economic developing policies should China’s central and local governments take to mitigate the overall nitrogen oxides emissions and prevent severe air pollution at the provincial level in specific locations and their neighboring areas? The present study aims to tackle these issues. This is the first research that simultaneously studies the nexus between nitrogen oxides emissions and economic development/urbanization, with the application of a spatial panel data technique. Our empirical findings suggest that spatial dependence of nitrogen oxides emissions distribution exists at the provincial level. Through the investigation of the existence of an environmental Kuznets curve (EKC embedded within the Stochastic Impacts by Regression on Population, Affluence, and Technology (STIRPAT framework, we conclude something interesting: an inverse N-shaped EKC describes both the income-nitrogen oxides nexus and the urbanization-nitrogen oxides nexus. Some well-directed policy advice is provided to reduce nitrogen oxides in the future. Moreover, these results contribute to the literature on development and pollution.

Environmentally Sustainable Economic Growth

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Stelian Brad

2016-05-01

Full Text Available Economic growth and sustainable development are important issues for social prosperity. Sustainable development strives for moderate and responsible use within the economic activity of the limited resources of our planet, whereas economic growth does not limit the resource exploitation and energy, being mainly focused on productivity increase. From this perspective, both conceptual and operational contradictions occur between the two pillars of prosperity. This paper looks to these contradictions and proposes some streams of intervention such as economic growth and environmental sustainability to operate in harmony. A structured framework for innovative problem solving is considered in this respect. Results of this research show that it is possible to induce smart measures in the economic system for directing businesses towards new paradigms where economic growth is possible without negative effects on environmental sustainability.

78 FR 15745 - Proposal Review Panel for Social and Economic Sciences; Notice of Meeting

Science.gov (United States)

2013-03-12

... NATIONAL SCIENCE FOUNDATION Proposal Review Panel for Social and Economic Sciences; Notice of... Science Foundation (NSF) announces the following Site Visit. Name: Proposal Review Panel for Social and Economic Sciences, 10748. Date and Time: March 21, 2013 8:30 a.m. to 5:00 p.m., March 22, 2013 8:00 a.m. to...

A Comparative Analysis of the Impact of Agricultural Exports on Economic Growth of ECOWAS Countries

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Richardson Kojo Edeme

2016-10-01

Full Text Available Towards the acceleration of the attainment of sustainable growth, most countries have focused on agricultural exports as a means of driving their economy. Developing countries of Africa are highly dependent on the agricultural sector and agricultural exports are a major determinant of economic growth of these countries. However, the impact of agricultural exports on economic growth of ECOWAS countries remains unclear. This study therefore evaluates the impact of agricultural exports on the economic growth of fifteen ECOWAS countries using panel data for the period 1980–2013. Variables employed are labour force participation rate, capital stock, agricultural exports, non-agricultural exports, inflation and economic growth. The results of the fixed-effect model show that agricultural exports have not impacted significantly on the economic growth of ECOWAS countries such as Côte d’Ivoire and Nigeria with respect to the Republic of Benin, which is the selected baseline. The study also analysed the country combined effect of the agricultural exports and found that it was significant but the rate of impact was weak. The study recommends, among others, that even though agricultural exports had a significant impact on economic growth, there is still a need for ECOWAS governments to improve their agricultural sector as its significance is more noticeable in some countries such as Côte d’Ivoire and Nigeria.

Renewable and non-renewable energy consumption and economic growth: Evidence from MENA Net Oil Importing Countries

OpenAIRE

Kahia, Montassar; Ben Aissa, Mohamed Safouane

2014-01-01

In this paper, we use panel cointegration techniques to explore the relationship between renewable and non-renewable energy consumption and economic growth in a sample of 11 MENA Net Oil Importing Countries covering the period 1980–2012. The Pedroni (1999, 2004), Kao(1999) as well as Westerlund(2007) panel cointegration tests indicate that there is a long-run equilibrium relationship between real GDP, renewable energy consumption, non-renewable energy consumption, real gross fixed capital for...

Global warming, energy use, and economic growth

Science.gov (United States)

Khanna, Neha

The dissertation comprises four papers that explore the interactions between global warming, energy use, and economic growth. While the papers are separate entities, they share the underlying theme of highlighting national differences in the growth experience and their implications for long-term energy use and climate change. The first paper provides an overview of some key economic issues in the climate change literature. In doing so, the paper critically appraises the 1995 draft report of Working Group III of the Intergovernmental Panel on Climate Change. The focus is the choice of a pure rate of time preference in the economic modeling of climate change, abatement costs differentials between developed and developing countries, and contrasting implications of standard discount rates and value of life estimates for these two country groups. The second paper develops a global model that takes account of the depletion of oil resources in the context of a geo-economic model for climate change. It is found that in the presence of non-decreasing carbon and energy intensities and declining petroleum availability, the carbon emissions trajectory is much higher than that typically projected by other models of this genre. Furthermore, by introducing price and income sensitive demand functions for fossil fuels, the model provides a framework to assess the effectiveness of fuel specific carbon taxes in reducing the COsb2 emissions trajectory. Cross-price substitution effects necessitate unrealistically high tax rates in order to lower the projected emissions trajectory to the optimal level. The economic structure of five integrated assessment models for climate change is reviewed in the third paper, with a special focus on the macroeconomic and damage assessment modules. The final paper undertakes an econometric estimation of the changing shares of capital, labour, energy, and technical change in explaining the growth patterns of 38 countries. Production elasticities vary by

Uncertain impacts on economic growth when stabilizing global temperatures at 1.5°C or 2°C warming

Science.gov (United States)

Pretis, Felix; Schwarz, Moritz; Tang, Kevin; Haustein, Karsten; Allen, Myles R.

2018-05-01

Empirical evidence suggests that variations in climate affect economic growth across countries over time. However, little is known about the relative impacts of climate change on economic outcomes when global mean surface temperature (GMST) is stabilized at 1.5°C or 2°C warming relative to pre-industrial levels. Here we use a new set of climate simulations under 1.5°C and 2°C warming from the `Half a degree Additional warming, Prognosis and Projected Impacts' (HAPPI) project to assess changes in economic growth using empirical estimates of climate impacts in a global panel dataset. Panel estimation results that are robust to outliers and breaks suggest that within-year variability of monthly temperatures and precipitation has little effect on economic growth beyond global nonlinear temperature effects. While expected temperature changes under a GMST increase of 1.5°C lead to proportionally higher warming in the Northern Hemisphere, the projected impact on economic growth is larger in the Tropics and Southern Hemisphere. Accounting for econometric estimation and climate uncertainty, the projected impacts on economic growth of 1.5°C warming are close to indistinguishable from current climate conditions, while 2°C warming suggests statistically lower economic growth for a large set of countries (median projected annual growth up to 2% lower). Level projections of gross domestic product (GDP) per capita exhibit high uncertainties, with median projected global average GDP per capita approximately 5% lower at the end of the century under 2°C warming relative to 1.5°C. The correlation between climate-induced reductions in per capita GDP growth and national income levels is significant at the p economic inequality between countries and is relevant to discussions of loss and damage under the United Nations Framework Convention on Climate Change. This article is part of the theme issue `The Paris Agreement: understanding the physical and social challenges for a

Uncertain impacts on economic growth when stabilizing global temperatures at 1.5°C or 2°C warming

Science.gov (United States)

Schwarz, Moritz; Tang, Kevin; Haustein, Karsten; Allen, Myles R.

2018-01-01

Empirical evidence suggests that variations in climate affect economic growth across countries over time. However, little is known about the relative impacts of climate change on economic outcomes when global mean surface temperature (GMST) is stabilized at 1.5°C or 2°C warming relative to pre-industrial levels. Here we use a new set of climate simulations under 1.5°C and 2°C warming from the ‘Half a degree Additional warming, Prognosis and Projected Impacts' (HAPPI) project to assess changes in economic growth using empirical estimates of climate impacts in a global panel dataset. Panel estimation results that are robust to outliers and breaks suggest that within-year variability of monthly temperatures and precipitation has little effect on economic growth beyond global nonlinear temperature effects. While expected temperature changes under a GMST increase of 1.5°C lead to proportionally higher warming in the Northern Hemisphere, the projected impact on economic growth is larger in the Tropics and Southern Hemisphere. Accounting for econometric estimation and climate uncertainty, the projected impacts on economic growth of 1.5°C warming are close to indistinguishable from current climate conditions, while 2°C warming suggests statistically lower economic growth for a large set of countries (median projected annual growth up to 2% lower). Level projections of gross domestic product (GDP) per capita exhibit high uncertainties, with median projected global average GDP per capita approximately 5% lower at the end of the century under 2°C warming relative to 1.5°C. The correlation between climate-induced reductions in per capita GDP growth and national income levels is significant at the p economic inequality between countries and is relevant to discussions of loss and damage under the United Nations Framework Convention on Climate Change. This article is part of the theme issue ‘The Paris Agreement: understanding the physical and social challenges for

The effects of local government investment on economic growth and employment: evidence from transitional China

Institute of Scientific and Technical Information of China (English)

Zhang Weiguo; Hou Yongjian

2009-01-01

Based on the panel data of 28 provinces in the year of 1987-2001,this paper examines the effects of the local government investment on economic growth and employment.The empirical result shows that the local government investment plays a significant positive role in economic growth and emplovment.However,while the proportion of local government investment to GDP had a remarkable rise after 1998.the elasticity of local government investment on economic growth declined,which shows that there is a hig room for raising the efficiency of local government mvestment.Moreover,the empirical examination shows that although local government investment had positive effect on employment,the elasticity had a decrease after 1994 when the tax-sharing system reform was put into practice.This shows that the positive role of local government investment on emplovment is also limited.This paper argues that the role of local governments as investors must be weakened,and local governments of different levels should lessen direct economic intervention and concentrate on public regulation.

Carbon dioxide emissions and economic growth: Panel data evidence from developing countries

Energy Technology Data Exchange (ETDEWEB)

Narayan, Paresh Kumar, E-mail: paresh.narayan@deakin.edu.au; Narayan, Seema

2010-01-15

In this paper we test the Environment Kuznet's Curve (EKC) hypothesis for 43 developing countries. We suggest examining the EKC hypothesis based on the short- and long-run income elasticities; that is, if the long-run income elasticity is smaller than the short-run income elasticity then it is evident that a country has reduced carbon dioxide emissions as its income has increased. Our empirical analysis based on individual countries suggests that Jordan, Iraq, Kuwait, Yemen, Qatar, the UAE, Argentina, Mexico, Venezuela, Algeria, Kenya, Nigeria, Congo, Ghana, and South Africa-approximately 35 per cent of the sample-carbon dioxide emissions have fallen over the long run; that is, as these economies have grown emissions have fallen since the long-run income elasticity is smaller than the short-run elasticity. We also examine the EKC hypothesis for panels of countries constructed on the basis of regional location using the panel cointegration and the panel long-run estimation techniques. We find that only for the Middle Eastern and South Asian panels, the income elasticity in the long run is smaller than the short run, implying that carbon dioxide emission has fallen with a rise in income.

Carbon dioxide emissions and economic growth. Panel data evidence from developing countries

Energy Technology Data Exchange (ETDEWEB)

Narayan, Paresh Kumar; Narayan, Seema [School of Accounting, Economics and Finance, Faculty of Business and Law, Deakin University, 221 Burwood Highway, Burwood, Victoria 3125 (Australia); School of Economics, Finance, and Marketing, Royal Melbourne Institute of Technology, Melbourne (Australia)

2010-01-15

In this paper we test the Environment Kuznet's Curve (EKC) hypothesis for 43 developing countries. We suggest examining the EKC hypothesis based on the short- and long-run income elasticities; that is, if the long-run income elasticity is smaller than the short-run income elasticity then it is evident that a country has reduced carbon dioxide emissions as its income has increased. Our empirical analysis based on individual countries suggests that Jordan, Iraq, Kuwait, Yemen, Qatar, the UAE, Argentina, Mexico, Venezuela, Algeria, Kenya, Nigeria, Congo, Ghana, and South Africa - approximately 35 per cent of the sample - carbon dioxide emissions have fallen over the long run; that is, as these economies have grown emissions have fallen since the long-run income elasticity is smaller than the short-run elasticity. We also examine the EKC hypothesis for panels of countries constructed on the basis of regional location using the panel cointegration and the panel long-run estimation techniques. We find that only for the Middle Eastern and South Asian panels, the income elasticity in the long run is smaller than the short run, implying that carbon dioxide emission has fallen with a rise in income. (author)

Carbon dioxide emissions and economic growth. Panel data evidence from developing countries

International Nuclear Information System (INIS)

Narayan, Paresh Kumar; Narayan, Seema

2010-01-01

In this paper we test the Environment Kuznet's Curve (EKC) hypothesis for 43 developing countries. We suggest examining the EKC hypothesis based on the short- and long-run income elasticities; that is, if the long-run income elasticity is smaller than the short-run income elasticity then it is evident that a country has reduced carbon dioxide emissions as its income has increased. Our empirical analysis based on individual countries suggests that Jordan, Iraq, Kuwait, Yemen, Qatar, the UAE, Argentina, Mexico, Venezuela, Algeria, Kenya, Nigeria, Congo, Ghana, and South Africa - approximately 35 per cent of the sample - carbon dioxide emissions have fallen over the long run; that is, as these economies have grown emissions have fallen since the long-run income elasticity is smaller than the short-run elasticity. We also examine the EKC hypothesis for panels of countries constructed on the basis of regional location using the panel cointegration and the panel long-run estimation techniques. We find that only for the Middle Eastern and South Asian panels, the income elasticity in the long run is smaller than the short run, implying that carbon dioxide emission has fallen with a rise in income. (author)

Testing the relationships between energy consumption, CO2 emissions, and economic growth in 24 African countries: a panel ARDL approach.

Science.gov (United States)

Asongu, Simplice; El Montasser, Ghassen; Toumi, Hassen

2016-04-01

This study complements existing literature by examining the nexus between energy consumption (EC), CO2 emissions (CE), and economic growth (GDP; gross domestic product) in 24 African countries using a panel autoregressive distributed lag (ARDL) approach. The following findings are established. First, there is a long-run relationship between EC, CE, and GDP. Second, a long-term effect from CE to GDP and EC is apparent, with reciprocal paths. Third, the error correction mechanisms are consistently stable. However, in cases of disequilibrium, only EC can be significantly adjusted to its long-run relationship. Fourth, there is a long-run causality running from GDP and CE to EC. Fifth, we find causality running from either CE or both CE and EC to GDP, and inverse causal paths are observable. Causality from EC to GDP is not strong, which supports the conservative hypothesis. Sixth, the causal direction from EC to GDP remains unobservable in the short term. By contrast, the opposite path is observable. There are also no short-run causalities from GDP, or EC, or EC, and GDP to EC. Policy implications are discussed.

Energy, economic growth, and human welfare

International Nuclear Information System (INIS)

Schurr, S.H.

1984-01-01

The subject is covered in sections, entitled: economic growth and human welfare; world-wide economic growth; economic growth and energy consumption; assessing the future; caution advised; energy supply and economic growth; supply as constraint; sound policies needed. (U.K.)

An empirical nexus between oil price collapse and economic growth in Sub-Saharan African oil based economies

Directory of Open Access Journals (Sweden)

KEJI Sunday Anderu

2018-06-01

Full Text Available The focus of this study, is to empirically investigate the nexus between oil price collapse and economic growth in sub-Saharan Africa oil based economies, specifically from Angola, Nigeria and Sudan between January, 2010 and December, 2015, through panel random effects model (REM: Economic growth rate (GDPR and independent variables: Oil price (OPR, Exchange rate (EXR, Industrial Output (IND and Terms of Trade (TOT. REM result showed that there is negative link between oil price collapse and the economic growth in the case of Angola, Nigeria and Sudan, which confirmed the nexus between oil price collapse and economic growth. Post estimation tests such as Hausman and Breusch and Pagan Lagrange Multiplier Test were adopted to empirically show the consistency and efficiency of the model. Interestingly, the two key variables (GDPR and OPR disclose how unprecedented oil price fall disrupts economic growth of the selected economies. Meanwhile, poor institutional quality in the oil sector coupled with poor fiscal measure among others, further expose these economies to unprecedented external shocks that was characterized by skyrocket exchange rate, hence destabilize growth within the period under review. Therefore, the need for a robust fiscal measure is pertinent in order to sustain economic growth

FDI- Economic Growth Nexus

DEFF Research Database (Denmark)

Bujac, Andreea Ioana; Corado Cretu, Emanuel

2017-01-01

Conducting a systematic literature review on the topic of FDI and Economic Growth and investigating this relationship, along with the determinants of an economy that attract FDI and the externalities resulting from Foreign activities, it is found that FDI does have a positive effect on a host...... country’s economic growth but only with the preexistence of certain determinants which facilitate the absorption capacity of the host country on reaping the spillover effects (externalities) of FDI. Lastly, a framework was built to illustrate the interaction between FDI, Determinants and condition...... of the host economy, barriers to growth, economic growth and externalities....

SUSTAINABILITY OF ECONOMIC GROWTH AND INEQUALITY IN INCOMES DISTRIBUTION

Directory of Open Access Journals (Sweden)

Bogdan Ion Boldea

2012-07-01

Full Text Available The problem of inequality in incomes distribution is a present one, much discussed. Economic growth is considered an essential force to reduce the level of poverty by increasing the labor demand and finally the wages within the economy. But the extent to which poverty is reduced as a result of economic growth depends mostly on the initial inequalities in income and on how the distribution of income changes with economic growth. A lot of researches are focused on studying the evolution of inequality in incomes distribution and others have attempted to explore the relationship between income inequality and economic growth. There are also studies which try to identify the main factors which have impact on inequality in incomes distribution. The objective of this study is to put in discussion another possible factor that affects the variability on inequality of incomes distribution – economic growth variability. As background research, until now, we did not find any studies which are investigating this possible relation between inequality of incomes distribution and economic growth variability. To provide some empirical evidences for a positive impact of social output volatility on inequality of incomes’ distribution we are involving a small sample of 27 developing countries for an observation time span between 1995 and 2006. The values of the Gini coefficient reported in World Income Inequality Database are used as dependent variable. As a first step in testing our research hypothesis, we are involving a static panel data model with pooled ordinary least squares (OLS, fixed effects (FE and random effects (RE estimators. The F statistics tests the null hypothesis of same specific effects for all countries. If we accept the null hypothesis, we could use the OLS estimator. The Hausman test can decide which model is better: random effects (RE versus fixed effects (FE. The FE model was selected because it avoids the inconsistency due to

ECONOMIC gROWTH, GLOBALIZATION AND TRADE

OpenAIRE

Nuno Carlos LEITÃO

2012-01-01

The purpose of this article is to investigate the relationship between economic growth, globalization and trade. The manuscript uses the assumptions of the economic growth exogenous and endogenous models. It introduces new proxies for explain the economic growth as in intra-industry trade, foreign direct investment and globalization index. The results indicate that economic growth is a dynamic process. The intra-industry has a positive impact on economic growth. This paper confirms relevan...

A panel data investigation of real exchange rate misalignment and growth

Directory of Open Access Journals (Sweden)

Flávio Vilela Vieira

2012-09-01

Full Text Available The paper investigates the role of real exchange rate misalignment on long-run growth for a set of ninety countries using time series data from 1980 to 2004. We first estimate a panel data model (fixed and random effects for the real exchange rate in order to produce estimates of the equilibrium real exchange rate and this is then used to construct measures of real exchange rate misalignment. We provide an alternative set of estimates of RER misalignment using panel cointegration methods. The results for the two-step System GMM panel growth models indicate that the coefficients for real exchange rate misalignment are positive for different model specification and samples, which means that a more depreciated (appreciated real exchange rate helps (harms long-run growth. The estimated coefficients are higher for developing and emerging countries.

Economic growth and business cycles

NARCIS (Netherlands)

Canton, E.J.F.

1997-01-01

This thesis contains five essays on economic growth and business cycles. The main focus is on the interaction between economic growth and the cycle: is cyclical variability good or bad for the long-run rate of economic growth? The introduction aims to provide some empirical evidence for an

ECONOMIC GROWTH THEORIES, CONCEPTUAL ELEMENTS, CHARACTERISTICS

Directory of Open Access Journals (Sweden)

Florina, POPA

2014-11-01

Full Text Available The approach of economic growth involves understanding the concept and growth factors, respectively, analysing the growth theories, their trend in the context of the development of economic and social life. The economic growth signifies a process aimed at increasing activities in the national economy, expressed by macroeconomic indicators, respectively, the dynamics of the overall Gross Domestic Product or per inhabitant. It can appreciate that, in the short term, this process signifies phases of economic prosperity and on the long-term, expresses an upward trend, a consequence of the succession of increases and decreases. The study presents some elements which outlines the concept of economic growth, that is, definitions, meanings and the main characteristics of the theories of growth, as well as some of its determinant factors. Also, it gives a brief overview of the main theories of economic growth, as they have evolved over time, in line with the economic reality dynamics and the development of the instruments of economic analysis, starting from the classical theories to the new theories and models of economic growth of the modern age.

The Impact of Foreign Direct Investments and Remittances on Economic Growth: A Case Study in Central and Eastern Europe

Directory of Open Access Journals (Sweden)

Calin-Adrian Comes

2018-01-01

Full Text Available This paper investigates the impact of Foreign Direct Investment (FDI and remittances on Economic Growth (EG, using panel data of seven countries from Central and Eastern Europe with a Gross Domestic Product (GDP per capita under 25,000 $. The empirical literature stressed the relationships between FDI and remittances and economic growth, and our purpose is to identify if there are significant relationships between FDI, remittances and economic growth in the seven analyzed countries. We find a positive impact of both FDI and remittances on GDP, but the influence of FDI is higher in all analyzed states, with accepting the assumption of ceteris paribus principles in limiting research caused by other possible determinants.

A REGIONAL APPROACH TO THE METROPOLITAN ECONOMIC GROWTH: EVIDENCE FROM THE EUROPEAN UNION

Directory of Open Access Journals (Sweden)

Florin Teodor Boldeanu

2016-09-01

Full Text Available The main goal of this study is to contribute to metropolitan economic growth literature by carrying out an analysis for 271 areas located in the EU between 2000 and 2013. For this objective the study uses several panel data estimation techniques, namely the GMM, System GMM and the QML estimation. To check the robustness of the results, the time period is divided in two (post and ante economic crisis and by splitting the sample of metropolitan regions in two components, the Western more developed regions and the Central and South-Eastern (the formal communist states, except for Cyprus areas. The results indicate that the industrial, construction and wholesale and retail trade sectors are positively linked with metropolitan growth. The agricultural, fishery and forestry sector is negatively influencing growth. The manufacturing and ITC sectors and migration are not statistically significant. Furthermore population density and size is more important than population growth and European enlargement did not have a substantial positive impact on metropolitan growth for the Central and South-Eastern regions.

Determinants of Non-Performing Assets in India - Panel Regression

Directory of Open Access Journals (Sweden)

Saikat Ghosh Roy

2014-12-01

Full Text Available It is well known that level of banks‟ credit plays an important role in economic developments. Indian banking sector has played a seminal role in supporting economic growth in India. Recently, Indian banks are experiencing consistent increase in non-performing assets (NPA. In this perspective, this paper investigates the trends in NPA in Indian banks and its determinants. The panel regressions, fixed effect allows evaluating the impact of selected macroeconomic variables on the NPA. The Panel regression result indicates that the GDP growth, change in exchange rate and global volatility have major effects on the NPA level of Indian banking sector.

77 FR 24227 - Proposal Review Panel for Social and Economic Sciences; Notice of Meeting

Science.gov (United States)

2012-04-23

... NATIONAL SCIENCE FOUNDATION Proposal Review Panel for Social and Economic Sciences; Notice of... Engineering Center (NSEC) at Arizona State University by the Division Social and Economic Sciences ( 10748... Kronz, Program Director; Science, Technology and Society Program; Division of Social and Economic...

Uncertain impacts on economic growth when stabilizing global temperatures at 1.5°C or 2°C warming.

Science.gov (United States)

Pretis, Felix; Schwarz, Moritz; Tang, Kevin; Haustein, Karsten; Allen, Myles R

2018-05-13

Empirical evidence suggests that variations in climate affect economic growth across countries over time. However, little is known about the relative impacts of climate change on economic outcomes when global mean surface temperature (GMST) is stabilized at 1.5°C or 2°C warming relative to pre-industrial levels. Here we use a new set of climate simulations under 1.5°C and 2°C warming from the 'Half a degree Additional warming, Prognosis and Projected Impacts' (HAPPI) project to assess changes in economic growth using empirical estimates of climate impacts in a global panel dataset. Panel estimation results that are robust to outliers and breaks suggest that within-year variability of monthly temperatures and precipitation has little effect on economic growth beyond global nonlinear temperature effects. While expected temperature changes under a GMST increase of 1.5°C lead to proportionally higher warming in the Northern Hemisphere, the projected impact on economic growth is larger in the Tropics and Southern Hemisphere. Accounting for econometric estimation and climate uncertainty, the projected impacts on economic growth of 1.5°C warming are close to indistinguishable from current climate conditions, while 2°C warming suggests statistically lower economic growth for a large set of countries (median projected annual growth up to 2% lower). Level projections of gross domestic product (GDP) per capita exhibit high uncertainties, with median projected global average GDP per capita approximately 5% lower at the end of the century under 2°C warming relative to 1.5°C. The correlation between climate-induced reductions in per capita GDP growth and national income levels is significant at the p  < 0.001 level, with lower-income countries experiencing greater losses, which may increase economic inequality between countries and is relevant to discussions of loss and damage under the United Nations Framework Convention on Climate Change.This article is part of

The contribution of foreign direct investment to clean energy use, carbon emissions and economic growth

International Nuclear Information System (INIS)

Lee, Jung Wan

2013-01-01

The paper investigates the contributions of foreign direct investment (FDI) net inflows to clean energy use, carbon emissions, and economic growth. The paper employs cointegration tests to examine a long-run equilibrium relationship among the variables and fixed effects models to examine the magnitude of FDI contributions to the other variables. The paper analyzes panel data of 19 nations of the G20 from 1971 to 2009. The test results indicate that FDI has played an important role in economic growth for the G20 whereas it limits its impact on an increase in CO 2 emissions in the economies. The research finds no compelling evidence of FDI link with clean energy use. Given the results, the paper discusses FDI's potential role in achieving green growth goals. - Highlights: ► FDI inflows strongly lead to economic growth in the G20. ► FDI inflows lead to an increase in energy use in the G20. ► FDI inflows are in no relation to CO 2 emissions in the G20. ► FDI inflows are in no relation to clean energy use in the G20. ► Economic growth is in negative relation to CO 2 emissions in the G20

The Bidirectional Causality between Country-Level Governance, Economic Growth and Sustainable Development: A Cross-Country Data Analysis

Directory of Open Access Journals (Sweden)

Cristina Boţa-Avram

2018-02-01

Full Text Available In the context of contemporary society, characterized by the information users’ growing and differentiated needs, the way country-level governance and social responsibility contribute to the ensuring of sustainable economic development is a concern for all the actors of the economic sphere. The aim of this paper is to test the causal linkages between the quality of country-level governance, economic growth and a well-known indicator of economic sustainable development, for a large panel of world-wide countries for a period of 10 years (2006–2015. While there are some prior studies that have argued the bidirectional causality between good public governance and economic development, this study intends to provide a new focus on the relationship between country-level governance and economic growth, on one hand, and between country-level governance and adjusted net savings, as a selected indicator of economic sustainable development, on the other hand. Four hypotheses on the causal relationship between good governance, economic growth and sustainable development were tested by using Granger non-causality tests. Our findings resulting from Granger non-causality tests provide reasonable evidence of Granger causality from country-level governance to economic growth, but from economic growth to country-level governance, the causality is not confirmed. In what regards the relationship between country-level governance and adjusted net savings, the bidirectional Granger causality is not confirmed. The main implication of our study is that improving economic growth and sustainable development is a very challenging issue, and the impact of macro-level factors such as country-level governance should not be neglected.

Sociological explanations of economic growth.

Science.gov (United States)

Marsh, R M

1988-01-01

Even if questions of how resources are distributed within and between societies are the main concern, it is necessary to continue to grapple with the issue of the causes of economic growth since economic growth and level of development continue to be among the most important causes of inequality, poverty, unemployment, and the quality of life. This paper's dependent variable is the economic growth rate of 55 less developed countries (LDCs) over 2 time periods. 1970-78 and 1965-84. The causal model consists of control variables--level of development and domestic investment in 1965--and a variety of independent variables drawn from major sociological theories of economic growth published during the last 3 decades. Multiple regression analysis shows that, net of the effects of the 2 control variables, the variables which have the strongest effect on economic growth are: 1) direct foreign investment, which has a negative effect, 2) the proportion of the population in military service, and 3) the primary school enrollment ratio, both of which have positive effects on economic growth. On the other hand, variables drawn from some theories receive no empirical support. The mass media of communications, ethnolinguistic heterogeneity, democracy and human rights, income inequality, and state-centric theory's key variable, state strength, all fail to show any significant impact on economic growth rates when the control variables and the significant independent variables are held constant. The theoretical implications of these findings are discussed.

The contribution of international trade to economic growth through human capital accumulation: Evidence from nine Asian countries

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Mirajul Haq

2014-12-01

Full Text Available This study is an attempt to test the hypothesis “international trade contributes to economic growth through its effects on human capital accumulation.” To assess the hypothesis empirically, we employed the extended Neo-Classical growth model that reflects some features of the endogenous growth models. We thus ended up with a model in which the change in human capital is sensitive to change in trade policies. Unlike conventional approaches, the model serves to assess and determine the impact of international trade on the accumulation of human capital. The empirical analysis estimates dynamic panel growth equations by using a data-set of nine Asian countries, over the period 1972–2012. The overall evidence substantiates the fact that in countries under consideration, international trade enhances the accumulation of human capital and contributes to economic growth positively through human capital accumulation.

Quality, Export and Economic Growth

DEFF Research Database (Denmark)

Madsen, Erik Strøjer; Pedersen, Kurt

1998-01-01

in an international context. The paper, therefore, addresses the complicated interactions between economic growth, export performance and quality. The contribution of the paper, compared to other growth accounting research, is the inclusion of quality data, quality being a significant mirror of technological...... development. The countries covered by the research represent a wide variation in terms of economic development, from poor LDC's to the most developed industrial nations. The empirical results reveal a probable strong relationship between quality/price and export growth as well as economic growth. This new...

Electricity regulation and economic growth

OpenAIRE

Costa, M. Teresa (Maria Teresa), 1951-; Garcia-Quevedo, Jose; Trujillo-Baute, Elisa

2018-01-01

The main objective of this paper is to analyse the effect of electricity regulation on economic growth. Although the relationship between electricity consumption and economic growth has been extensively analysed in the empirical literature, this framework has not been used to estimate the effect of electricity regulation on economic growth. Understanding this effect is essential for the assessment of regulatory policy. Specifically, we assess the effects of two major areas of regulation, rene...

Government Expenditure, Efficiency and Economic Growth: A Panel ...

African Journals Online (AJOL)

Choong Chee Keong. 6 and Lau Lin Sea. 7 ... Corresponding Author, Department of Economics, Faculty of Business and Finance, UTAR, Malaysia. .... the taxation system and assert that if country's government expenditure is greater than.

Spatial–Temporal Modeling for Regional Economic Development: A Quantitative Analysis with Panel Data from Western China

Directory of Open Access Journals (Sweden)

Jingxiao Zhang

2017-10-01

Full Text Available The objective of this research is to analyze regional economic difference and explore the influencing factors, which would eventually provide an effective foundation to narrow the regional economic differences. In this paper, a new regional economic difference model is established considering the interactions between the spatial weight and human capital and foreign direct investment (FDI. With the panel data from twelve western provinces in China, the empirical research is conducted by adopting feasible generalized least squares (FGLS fixed effects model. The preliminary results show that: (1 the spatial spillover effect of human capital and FDI is significant to the formation of regional economic difference; and (2 the total capital formation, government expenditure, FDI, human capital and patent application authorization are positively correlated with GDP growth per capita, while the number of medical institutions is negatively correlated with GDP growth per capita. In addition, the robust test is carried out for validation by using the filter variable method, spatial lag model and spatial error model. The robustness test results show that the results of the FGLS fixed effects model are validated by the filter variable method. The other two robust test results show that: (1 the total capital formation and the fixed asset investment is of 99.9% significance, which represents that they play a key role in the formation of economic development difference; and (2 the coefficients’ symbols of the other variables are consistent with the FGLS fixed effect model but a little different on the significances, which enhance the effectiveness of the proposed regional economic difference model.

The relationship between population ageing and the economic growth in Asia

Science.gov (United States)

Brendan, Lo Rick; Sek, Siok Kun

2017-08-01

Asia has witnessed robust economic growth since the 1960s. Today, emerging markets in Asia have managed to maintain rapid growth even when the world's main economies suffer from debt and banking crises. However, declining total fertility rate, increasing life expectancy, continuous change of birth and death patterns, and increasing share of old age population in the age distribution in Asia exert significant pressure on its economies. This paper analyses the relationship between population ageing and economic growth using 2 different panels of countries; one Asian and another the from the oldest countries worldwide between 1970 and 2014. The analysis is based on the Auto Regression Distributed Lag models. The MG (Mean Group) and PMG (Pooled Mean Group) estimations are applied in this analysis. The Hausman Test is conducted to decide between the MG and PMG estimators. We find that ageing will negatively affect the economy in the long run. The growing number of youths will initially have a negative effect on the economy but would eventually lead to a positive growth in the future. The old age dependency ratio has yet to have affect the Asian economy but is expected eventually to impose a negative effect as seen in the oldest nations of the world.

ECONOMIC GROWTH AND EQUALITY IN REDUCING POVERTY

Directory of Open Access Journals (Sweden)

Zaenal Muttaqin

2016-02-01

Full Text Available In some developing countries, the instrument to alleviate the poverty is by using the economic growth. So, the increasing in investment, infrastructure development, and macroeconomics stability always be priority from developing countries. In this article explain that economic growth is not the important factor to alleviate the poverty, because equality sometimes is more important rather than the economic growth. In this context, its measure by inequality growth trade off index (IGTI. This method is to measure the influence of economic growth to reducing the inequality, with this method every country can measure which one is better to reducing the poverty whether the economic growth or equality. With this method, Laos in 2000 show that economic growth is more important than equality, but in the same year in Thailand show that equality is more important than economic growth.DOI: 10.15408/sjie.v1i1.2592

Stock market development and economic growth of Brazil, Russia, India, China and South African (BRICS Nations: An empirical research

Directory of Open Access Journals (Sweden)

Sunday Ogbeide

2018-04-01

Full Text Available BRICS connotes five main emerging national economies: Brazil, Russia, India, China and South Africa are particularly distinguished as nations experiencing expanded market opportunities and countries discovered to be at stages of newly advanced economic development. This paper assesses the stock market development and economic growth in these BRICS nations. In doing this, quarterly time series data from 1994 to 2014 was sourced from World Bank Indicators. The Panel Generalized method based on the fixed effect estimation was employed to determine how stock market development affects the economic growth of BRICS. Diagnostic tests were conducted to ascertain the robustness and stability of the regression results after carrying out the unit root calculations. The findings reveal that stock market development exerts significant impact on the economic growth. The study further reveals that there was a positive correlation between stock market development indicators and BRICS’s economic growth. It is therefore proposed that the weaknesses of each of the BRICS member countries should be taken as policy focus and strategies necessary to strengthen them should be swiftly applied by their respective governments.

An Empirical Analysis of Stock Market Development and Economic Growth: The Case of Macedonia

Directory of Open Access Journals (Sweden)

Lazarov Darko

2016-12-01

Full Text Available This paper has two goals. The first goal is to investigate the influence of stock market development on economic growth for a group of 14 transition economies from the Central and South-East European (CSEE region in the period 2002-2012, while the second is to analyze the main characteristics and specificities of the stock market in the Republic of Macedonia. To fulfil the first goal, we apply panel regression models (fixed and random effects and a dynamic panel model (Generalized Method of Moments – GMM, while we use a single country approach and comparative analysis to examine the main characteristics of the Macedonian stock market. The estimated results indicate that stock market development is positive and significantly correlated with economic growth. Additionally, the comparative analysis of the stock market in the Republic of Macedonia suggests that the Macedonian stock market is still underdeveloped and faces a number of challenges before it can enter a new phase of development after the negative impact of the global financial crisis. Those challenges include capital market regional integration and the harmonization of legal and institutional frameworks such as bankruptcy procedures, accounting and reporting standards, public sector regulatory bodies, corporate governance and a liberalized trade regime.

City Population Growth and Economic Growth

DEFF Research Database (Denmark)

Freire-Gibb, L. Carlos

2008-01-01

This article looks at the relationship between city population growth (intimately related to population proximity), and economic development. The hypothesis is that wherever dynamic and inclusive networks exist, there are more opportunities for economic development in this place. When these types...... of networks choose a tool (project, policy) to implement in the city, success will be more likely. Furthermore, virtuous circles will arise. The author gives an overview of two historical cases in urban growth, in Europe (1200-1800) and the U.S.A. (1800 to today)....

Financial Development, Environmental Quality and Economic Growth

Directory of Open Access Journals (Sweden)

Shushu Li

2015-07-01

Full Text Available In this study, the relationships between financial development, environmental quality and economic growth are studied based on data from 102 countries over the period 1980–2010 using the generalized method of moments (GMM estimation. The econometric results show the following three basic conclusions: First, both financial development and environmental quality have a significant impact on economic growth and should be included in the production function of the economic growth model as important variables. Second, there is a significant and robust “inverted U-shaped” relationship between financial development and economic growth; with the improvement of the level of financial development, economic growth would first increase and then decrease, which is consistent with the results of previous studies. Third, there is also a significant and robust “inverted U-shaped” relationship between economic growth and carbon emissions, indicating that there exists a “critical point” at which achieving economic growth comes at the expense of environmental quality, and after passing the critical point, the deterioration of environmental quality will lead to a significant slowdown in economic growth. In addition, the econometric analysis in this paper also shows that there was a mutually promoting and strengthening relationship between financial development and environmental quality. Specifically, the degree of financial development can further strengthen the promoting effect of environmental quality on economic growth; meanwhile, an improvement in environmental quality can also strengthen the promoting effect of financial development on economic growth. Financial development and environmental quality could influence economic growth through strengthening the marginal product effects of capital and labor, which further indicates the that both financial and environmental factors play an important role in modern economic development.

THE CAUSALITY RELATION BETWEEN FINANCIAL DEVELOPMENT AND ECONOMIC GROWTH: AN ANALYSIS FOR EMERGING ECONOMIES

Directory of Open Access Journals (Sweden)

Şeref BOZOKLU

2013-12-01

Full Text Available This study examines the relationship between financial development and economicgrowth employing panel Granger causality test developed by Dumitrescu ve Hurlin (2012for Brazil, Chile, China, Egypt, Hungry, India, Indonesia, Malaysia, Mexico, Peru,Philippines, South Korea, Thailand and Turkey. We used yearly data over the period 1988-2011. Domestic credits to Gross Domestic Product (GDP ratio and real GDP per capitaare used as indicators for financial development and economic growth respectively. Theempirical results strongly indicate that financial development Granger-causes economicgrowth and that these countries can accelerate their growth rates by improving theirfinancial systems. 

Economic institutions and economic growth: Empirical evidence from the Economic Community of West African States

Directory of Open Access Journals (Sweden)

Lazarus Z. Wanjuu

2017-12-01

Background: Economic institutions are considered as the fundamental cause of economic growth. Economic institutions affect economic growth through allocation of resources like physical and human capital. Unfortunately, there is dearth of empirical studies showing the impact of economic institutions on growth of the Economic Community of West African States (ECOWAS. Aim: This study investigates the impact of economic institutions on economic growth of the ECOWAS. Setting and method: The study applied cause and effect relationship. The study used econometric research techniques of unit root and co-integration tests to establish the time series properties of the data; the vector error correction and co-integration regression models to estimate the population parameters. The research data comprised data obtained from the United Nations Conference on Trade and Development (UNCTAD, the Transparency International (TI and Heritage Foundation databases. The variables employed were the real gross domestic product (GDP per capita (RGDPPC, corruption perception index (CPI, property rights protection (PROPRGT, private investment per capita (INVESPC, government expenditure per capita (GOEXPPC and trade openness (TRAOPN. Results: The results of the data analysed showed that economic institutions represented by the property rights index engender RGDPPC growth in ECOWAS. The CPI could not stimulate RGDPPC growth in ECOWAS. The results also show that all the other variables stimulated growth except trade openness. Conclusion: The study concludes that good economic institutions, private investments, and government intervention by providing security, economic and social infrastructural facilities are conducive for economic growth in the ECOWAS region. The study recommended that more efforts be made at curbing corruption in the region

Entrepreneurial Diversity and Economic Growth

NARCIS (Netherlands)

I. Verheul (Ingrid); A.J. van Stel (André)

2007-01-01

textabstractMost studies investigating the relationship between entrepreneurship and economic growth treat entrepreneurs as a homogeneous group. This study investigates the impact of entrepreneurial diversity on national economic growth. Using data for 36 countries participating in the Global

Urban and rural population growth in a spatial panel of municipalities

NARCIS (Netherlands)

Costa da Silva, Diego Firmino; Elhorst, J. Paul; Silveira Neto, Raul da Mota

2017-01-01

Urban and rural population growth in a spatial panel of municipalities. Regional Studies. Using Bayesian posterior model probabilities and data pertaining to 3659 Brazilian minimum comparable areas (MCAs) over the period 1970-2010, two theoretical settings of population growth dynamics resulting in

A panel Granger-causality test of endogenous vs. exogenous growth

OpenAIRE

Jochen Hartwig

2009-01-01

The paper proposes a new test of endogenous vs. exogenous growth theories based on the Granger-causality methodology and applies it to a panel of 20 OECD countries. The test yields divergent evidence with respect to physical and human capital. For physical capital, the test results favor Solow-type exogenous growth theory over AK-type endogenous growth models. On the other hand, the test results lend support to human capital oriented endogenous growth models - like the Uzawa-Lucas model - rat...

The impact of energy consumption and CO2 emission on the economic growth and financial development in the Sub Saharan African countries

International Nuclear Information System (INIS)

Al-mulali, Usama; Binti Che Sab, Che Normee

2012-01-01

This study investigated the impact of energy consumption and CO 2 emission on GDP (gross domestic product) growth and the financial development in thirty Sub Saharan African Countries. The panel model was used in this study from the period 1980 to 2008. The results showed that energy consumption had played an important role to increase both economic growth and the financial development in the investigated economies but with the consequence of high po llution. This study recommended that these countries should increase energy productivity by increasing energy efficiency, implementation of energy savings projects, energy conservation, and energy infrastructure outsourcing to achieve its financial development and GDP growth and to increase their investment on energy projects to achieve the full energy potential. -- Highlights: ► The impact of energy consumption, CO 2 emission on GDP and the financial development in the SSA countries was investigated. ► The panel model was implied in this study from the period 1980 to 2008. ► The results show energy consumption increased economic growth and the financial development but with higher pollution.

Decoupling Transport from Economic Growth. Towards Transport Sustainability in Europe

International Nuclear Information System (INIS)

Tight, M.R.; Site, P. Delle; Meyer-Ruehle, O.

2004-01-01

This paper reports on a research project that aimed to identify and assess measures which could be used to reduce travel demand while maintaining economic growth and enhancing environmental quality. The research methodology involved a detailed review of past research; contact with over 600 experts from around Europe and elsewhere for ideas on potential measures; detailed questionnaires from over 100 of these experts; and a series of three panel sessions held in different parts of Europe, each of which involved around 16 experts debating the merits of different measures and identifying case study evidence of their effectiveness. The end result was a short list of 13 measures, indicative of broad types, which are considered to be effective, and an indication of their effectiveness if applied across the European Union. Seven illustrative measures are discussed which stand out from the results as having proven potential (though not necessarily at a European scale) to influence transport intensity and/or unit environmental load whilst not having large detrimental effects on GDP. These are the areas where it is felt that European transport policy could most usefully be focussed in terms of decoupling of transport demand and economic growth

77 FR 24228 - Proposal Review Panel for Social and Economic Sciences; Notice of Meeting

Science.gov (United States)

2012-04-23

... NATIONAL SCIENCE FOUNDATION Proposal Review Panel for Social and Economic Sciences; Notice of...; Division of Social and Economic Sciences, Room 990, National Science Foundation, 4201 Wilson Boulevard... Science Foundation announces the following meeting: Name: Site visit review of the Nanoscale Science and...

Corporate Stability and Economic Growth

OpenAIRE

He, Kathy S.; Morck, Randall; Yeung, Bernard

2003-01-01

Greater instability in a country's list of top corporations is associated with faster economic growth. This faster growth is primarily due to faster growth in total factor productivity in industrialized countries, and faster capital accumulation in developing countries. These findings are consistent with the view that economic growth is more closely tied to the rise of new large firms than to the prosperity of established large firms. Although a stable list of leading corporations is highly c...

A Panel Threshold Model of Tourism Specialization and Economic Development

NARCIS (Netherlands)

C-L. Chang (Chia-Lin); T. Khamkaew (Tanchanok); M.J. McAleer (Michael)

2009-01-01

textabstractThe significant impact of international tourism in stimulating economic growth is especially important from a policy perspective. For this reason, the relationship between international tourism and economic growth would seem to be an interesting empirical issue. In particular, if there

Economic growth-electricity consumption causality in 12 European countries: A dynamic panel data approach

International Nuclear Information System (INIS)

Ciarreta, A.; Zarraga, A.

2010-01-01

This paper applies recent panel methodology to investigate the long-run and causal relationship between electricity consumption and real GDP for a set of 12 European countries using annual data for the period 1970-2007. The sample countries have moved faster than other neighboring countries towards the creation of a single electricity market over the past 30 years. Energy prices are also included in the study due to their important role in affecting the above variables, thus avoiding the problem of omitted variable bias. Tests for panel unit roots, cointegration in heterogeneous panels and panel causality are employed in a trivariate VECM estimated by system GMM. The results show evidence of a long-run equilibrium relationship between the three series and a negative short-run and strong causality from electricity consumption to GDP. As expected, there is bidirectional causality between energy prices and GDP and weaker evidence between electricity consumption and energy prices. These results support the policies implemented towards the creation of a common European electricity market.

Threshold effect of the economic growth rate on the renewable energy development from a change in energy price. Evidence from OECD countries

International Nuclear Information System (INIS)

Chang, Ting-Huan; Huang, Chien-Ming; Lee, Ming-Chih

2009-01-01

This paper uses a panel threshold regression (PTR) model to investigate the influence that energy prices have on renewable energy development under different economic growth rate regimes. The empirical data are obtained from each of the OECD member-countries over the period from 1997 to 2006. We show that there is one threshold in the regression relationship, which is 4.13% of a one-period lag in the annual gross domestic product (GDP) growth rate. The consumer price index (CPI), in so far as it relates to variations in energy, is significantly positively correlated with the contribution of renewables to energy supply in the regime with higher-economic growth, but there is no relationship in the regime with lower economic growth. Therefore, countries characterized by high-economic growth are able to respond to high energy prices with increases in renewable energy use, while countries characterized by low-economic growth countries tend to be unresponsive to energy price changes when they come to their level of renewable energy. (author)

How robust is the relationship between economic freedom and economic growth?

NARCIS (Netherlands)

Sturm, JE; De Haan, J

Using various indicators for economic freedom, it is shown that increases in economic freedom are robustly related to economic growth. This conclusion holds even if the impact of outlying observations is taken into account. The level of economic freedom is not related to growth.

Modeling the allocation and economic evaluation of PV panels and wind turbines in urban areas

NARCIS (Netherlands)

Mohammadi, S.; Vries, de B.; Schaefer, W.F.; Timmermans, H.

2014-01-01

A model for allocating PV panels and wind turbines in urban areas is developed. Firstly, it examines the spatial and technical requirements for the installation of PV panels and wind turbines and then evaluates their economic feasibilities in order to generate the cost effective electricity neutral

[Economic growth with zero population growth and with declining population].

Science.gov (United States)

Kurz, R

1982-05-01

The effects of both zero population growth and a declining population on economic growth are considered. Although the neoclassical theory of economic growth leads to optimistic results in such cases, the author suggests that this theory cannot be used as a basis for political action. The need for further research into the economic effects of a stationary or declining population is stressed. (summary in ENG)

How crude oil consumption impacts on economic growth of Sub-Saharan Africa?

International Nuclear Information System (INIS)

Bashiri Behmiri, Niaz; Pires Manso, José R.

2013-01-01

This study investigates the causality relationship between crude oil consumption and economic growth in twenty three Sub-Saharan African countries. We applied a multivariate panel Granger causality framework during 1985–2011 and we included crude oil price as the control variable of the model. The results indicate that in the short-run, there is a bi-directional causality relationship between crude oil consumption and economic growth in oil importing region and there is a uni-directional causality relationship from crude oil consumption to GDP in oil exporting region. However, in the long-run there is a bi-directional causality relationship between them in both regions. Therefore, reducing crude oil consumption without employing appropriate policies adversely impacts on economic growth of Sub-Saharan Africa. Hence, in order to reduce crude oil dependency of the region policymakers should pay more attention to the issue of energy efficiency programs. - Highlights: ► We examined Granger causality among oil consumption and GDP in Sub-Saharan Africa. ► Crude oil price is the control variable of the model. ► There is short run bi-directional causality among oil and GDP (oil importing). ► There is short run uni-directional causality from oil to GDP (oil exporting). ► There is a long run bi-directional causality among oil and GDP in both regions

Technical Education and Economic Growth

Indian Academy of Sciences (India)

First page Back Continue Last page Graphics. Technical Education and Economic Growth. Technical Education and Economic Growth. Review of the Present Status. Expanding no.s and impairment of quality; Faculty shortage; Grim situation at Masters and PhD levels; Regional imbalance; Absence of International flavour ...

Armenia's Economic Growth Sustainability

OpenAIRE

Hayakawa, Tatsuji

2015-01-01

Armenia enjoyed 15 years of uninterrupted high economic growth prior to the global financial crisis in 2009. Investment, particularly in the mining and metallurgy sectors, played a key role as a driver of economic growth. Remittances，mostly from Russia, had an effect in sustaining consumption and boosting construction. Armenia has shown some weaknesses in the external sector, due to demands for natural gas, mineral products, machinery, and equipment. Armenia's exports and FDI suffer from the ...

Influence of the Budgetary Decentralization on the Economic Growth of Regions of Ukraine: Statistical Estimation

Directory of Open Access Journals (Sweden)

Voznyak Halyna V.

2017-06-01

Full Text Available The aim of the article is to define, determine and analyze the interrelationships between the budgetary decentralization and the economic growth of regions of Ukraine under conditions of reforming the power and financial resources. A statistical estimation of the influence of the budgetary decentralization on the economic growth of regions of Ukraine for 2015-2016 is carried out. The application of the panel data modeling allowed to build econometric models that made it possible to determine the ambiguous nature of the budgetary decentralization and identify key factors of its influence. It is shown that in terms of the income and expenditures the budgetary decentralization is positively associated with the economic growth of regions of Ukraine during the chosen time range of the study. The dynamic growth of the own revenues of local budgets is not a catalyst for the economic development of the regions. A strong negative effect of transfers on the dependent variable is confirmed. Among the variables included in the model and additionally characterizing the budgetary decentralization, the single tax and subsidies for the socio-economic development of individual territories attract attention. As a result of the study, the author justifies the need to minimize the transfer dependence of the regions at a simultaneous increasing of their own revenue base with local taxes and fees serving as a reliable basis for a long-term planning and development.

Innovation, resources and economic growth

International Nuclear Information System (INIS)

Curzio, A.Q.; Fortis, M.; Zoboli, R.

1994-01-01

The book is concerned with the following items: 1. Technological Creativity and Institutions, 2. Innovation at Work in an Historical-Economic Perspective: Energy and Industrial Materials, 3. Scientific Revolutions and Strategies of Economic Supremacy: Advanced Materials and Biotechnologies, 4. Economic Growth and Agro-Food Policies in Key Problem Regions: Former USSR and LDCs, 5. Economic Growth and Natural Resources at Risk: Climate Change, Forests and Water and in Conclusion: Innovation and Resources in a Global Policy Perspective. Only one chapter have regard to energy problems: Energie efficient technologies: past and future perspectives. (UA)

ECONOMIC GROWTH – COSTS AND DEVELOPMENT DISCREPANCES

OpenAIRE

Ion Bucur

2007-01-01

The economic growth shows an ascending tendency of the economic evolution over a long period of time, having favorable social and economic effects. Each economic growth factor acts simultaneous trough three dimensions.

Human Development and Economic Growth

OpenAIRE

Ranis, Gustav

2004-01-01

Recent literature has contrasted Human Development, described as the ultimate goal of the development process, with economic growth, described as an imperfect proxy for more general welfare, or as a means toward enhanced human development. This debate has broadened the definitions and goals of development but still needs to define the important interrelations between human development (HD) and economic growth (EG). To the extent that greater freedom and capabilities improve economic performan...

Agglomeration Economies, Economic Growth and the New Economic Geography in Mexico

OpenAIRE

Alejandro Diaz-Bautista

2005-01-01

The present study of regional economic growth in Mexico is based on the new economic geography, where distance plays an important role in explaining urban regional economic growth. The results show that distance to the northern border of Mexico and labor migration between states of Mexico, after the passage of NAFTA are important factors that explain the regional state growth and agglomerations in Mexico between 1994 and 2000. The results also indicate that job growth and FDI are not signific...

Factor-structure of economic growth in E-commerce

Institute of Scientific and Technical Information of China (English)

吴隽; 刘洪久; 栾天行

2003-01-01

In order to analyze the factors having effect on economic growth of E-commerce, the economic growthprocess of E-commerce is divided into three stages; growth stage, stabilization stage and re-growth stage. Thesethree different stages are analysed using several economic growth theories, a set of factor-structure is proposedfor each stage of the economic growth process of E-commerce.

Relationship Between Education Expenditure And Economic Growth ...

African Journals Online (AJOL)

The empirical part of the result shows that there is unidirectional relationship between education and economic growth with causality running from education expenditure to economic growth. The result therefore suggests that policy makers should boost expenditure on education as it will further improve economic growth in ...

CORRELATION BETWEEN ECONOMIC GROWTH AND UNEMPLOYMENT

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Savu Mihaela

2013-06-01

Full Text Available The mankind progress is built on economic growth.Yet, the high rates of economic growth must be properly used and correlated with other macroeconomic indicators in order to get the aimed effects.At the Romanian economic level, there is an inverse ratio connection between the gross domestic product and the unemployed number, a connection of low intensity.The correlation of these two indicators was established using parametric and nonparametric methods of analyzing the statistic connection using the informatic soft. Setting the recession function allows us to calculate the unemployed number depending on the forecasting of the economic growth in Romania.

Spatial Spillover Effects of Transport Infrastructure in Chinese New Silk Road Economic Belt

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Jian Li

2017-04-01

Full Text Available Based on the inner-effect mechanism of transport infrastructure and regional economic growth, this paper builds a specialized spatial weight matrix by utilizing the panel data from 31 provinces in New Silk Road Economic Belt (NSREB and other areas from 2005 to 2014, and combines with the spatial panel model to analyze the spatial spillover effects of transport infrastructure. According to the analysis, the transport infrastructure plays an obvious lead role in regional economy growth alongside the NSREB, and the economic growth invigorates common development in surrounding regions. In addition, differences were observed among the different transport infrastructure with regard to their influences on regional economic development, as the highway transport affects regional economic growth to a larger degree than railway transport.

REMITTANCES AND ECONOMIC GROWTH IN TURKEY

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Huseyin KARAMELIKLI

2015-07-01

Full Text Available Savings are one of the important determinants beyond the theories of economic growth. Therefore remittances and foreign direct investment inflows have importance for the countries having insufficient savings. This study examines the relationship between economic growth, remittances, foreign direct investment inflows and gross domestic savings in Turkey during the period 1974-2013 by using Autoregressive Distributed Lag approach. We found that remittances, foreign direct investment and gross domestic savings had positive impact on economic growth.

Bringing the Military Back in: Military Expenditures and Economic Growth 1990 to 2003

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Jeffrey Kentor

2015-08-01

Full Text Available After the “peace bonus” era, global military expenditures have escalated sharply despite some worldwide declines in military personnel. Theories on the economic impacts of the military institution and escalated military spending greatly differ and include arguments that they either improve domestic economic performance or crowd out growth-inducing processes. Empirical findings on this matter are inconclusive, in part due to a failure to disentangle the various dimensions of military expenditures. We further suggest that modern sociology's relative inattention to such issues has contributed to these shortcomings. We explore a new dimension of military spending that clarifies this issue—military expenditures per soldier —which captures the capital intensiveness of a country’s military organization. Our cross-national panel regression and causal analyses of developed and less developed countries from 1990 to 2003 show that military expenditures per soldier inhibit the growth of per capita GDP, net of control variables, with the most pronounced effects in least developed countries. These expenditures inhibit national development in part by slowing the expansion of the labor force. Labor-intensive militaries may provide a pathway for upward mobility, but comparatively capital-intensive military organizations limit entry opportunities for unskilled and under- or unemployed people. Deep investments in military hardware also reduce the investment capital available for more economically productive opportunities. We also find that arms imports have a positive effect on economic growth, but only in less developed countries.

Rethinking Economics and Education: Exponential Growth and Post-Growth Strategies

Science.gov (United States)

Irwin, Ruth

2017-01-01

Education is increasingly vocational and structured to serve the ongoing exponential increase in economic growth. Climate change is an outcome of these same economic values and praxes. Attempts to shift these values and our approach to technology are continually absorbed and overcome by the pressing motif of economic growth. In this article, Ruth…

Structural modelling of economic growth: Technological changes

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Sukharev Oleg

2016-01-01

Full Text Available Neoclassical and Keynesian theories of economic growth assume the use of Cobb-Douglas modified functions and other aggregate econometric approaches to growth dynamics modelling. In that case explanations of economic growth are based on the logic of the used mathematical ratios often including the ideas about aggregated values change and factors change a priori. The idea of assessment of factor productivity is the fundamental one among modern theories of economic growth. Nevertheless, structural parameters of economic system, institutions and technological changes are practically not considered within known approaches, though the latter is reflected in the changing parameters of production function. At the same time, on the one hand, the ratio of structural elements determines the future value of the total productivity of the factors and, on the other hand, strongly influences the rate of economic growth and its mode of innovative dynamics. To put structural parameters of economic system into growth models with the possibility of assessment of such modes under conditions of interaction of new and old combinations is an essential step in the development of the theory of economic growth/development. It allows forming stimulation policy of economic growth proceeding from the structural ratios and relations recognized for this economic system. It is most convenient in such models to use logistic functions demonstrating the resource change for old and new combination within the economic system. The result of economy development depends on starting conditions, and on institutional parameters of velocity change of resource borrowing in favour of a new combination and creation of its own resource. Model registration of the resource is carried out through the idea of investments into new and old combinations.

Is Urban Economic Growth Inclusive in India?

OpenAIRE

Tripathi, Sabyasachi

2013-01-01

This paper measures the overall inclusive growth of a city by considering changing trends in the key economic variables based on ‘Borda ranking’ and establishes a relationship between city economic growth and overall city inclusive growth. By using data of 52 large cities in India, this paper finds that higher urban economic growth is associated with an increase in urban inequality, a reduction in urban poverty, and a lower level of overall inclusive growth of a city.

Corruption and economic growth with non constant labor force growth

Science.gov (United States)

Brianzoni, Serena; Campisi, Giovanni; Russo, Alberto

2018-05-01

Based on Brianzoni et al. [1] in the present work we propose an economic model regarding the relationship between corruption in public procurement and economic growth. We extend the benchmark model by introducing endogenous labor force growth, described by the logistic equation. The results of previous studies, as Del Monte and Papagni [2] and Mauro [3], show that countries are stuck in one of the two equilibria (high corruption and low economic growth or low corruption and high economic growth). Brianzoni et al. [1] prove the existence of a further steady state characterized by intermediate levels of capital per capita and corruption. Our aim is to investigate the effects of the endogenous growth around such equilibrium. Moreover, due to the high number of parameters of the model, specific attention is given to the numerical simulations which highlight new policy measures that can be adopted by the government to fight corruption.

On the causal dynamics between emissions, nuclear energy, renewable energy, and economic growth

International Nuclear Information System (INIS)

Apergis, Nicholas; Payne, James E.; Menyah, Kojo; Wolde-Rufael, Yemane

2010-01-01

This paper examines the causal relationship between CO 2 emissions, nuclear energy consumption, renewable energy consumption, and economic growth for a group of 19 developed and developing countries for the period 1984-2007 using a panel error correction model. The long-run estimates indicate that there is a statistically significant negative association between nuclear energy consumption and emissions, but a statistically significant positive relationship between emissions and renewable energy consumption. The results from the panel Granger causality tests suggest that in the short-run nuclear energy consumption plays an important role in reducing CO 2 emissions whereas renewable energy consumption does not contribute to reductions in emissions. This may be due to the lack of adequate storage technology to overcome intermittent supply problems as a result electricity producers have to rely on emission generating energy sources to meet peak load demand. (author)

Coal consumption and economic growth in Taiwan

International Nuclear Information System (INIS)

Yang, H.Y.

2000-01-01

The purpose of this paper is to examine the causality issue between coal consumption and economic growth for Taiwan. The co-integration and Granger's causality test are applied to investigate the relationship between the two economic series. Results of the co-integration and Granger's causality test based on 1954--1997 Taiwan data show a unidirectional causality from economic growth to coal consumption with no feedback effects. Their major finding supports the neutrality hypothesis of coal consumption with respect to economic growth. Further, the finding has practical policy implications for decision makers in the area of macroeconomic planning, as coal conservation is a feasible policy with no damaging repercussions on economic growth

GROWTH ECONOMICS AND DEVELOPMENT ECONOMICS: WHAT SHOULD DEVELOPMENT ECONOMISTS LEARN (IF ANYTHING) FROM THE NEW GROWTH THEORY?

OpenAIRE

Ruttan, Vernon W.

1998-01-01

Since their emergence as a distinct fields of inquiry in the early post World War II period there has been an uneasy relationship between growth economics and development economics. The emergence of a richer new growth economics' has opened up the possibilities of a more fruitful dialogue between the two subdisciplines. In spite of recent advances, particularly with respect to the human capital, and understanding of differences in growth rates and income levels across countries remains elusiv...

REFERENCE MODELS OF ENDOGENOUS ECONOMIC GROWTH

OpenAIRE

GEAMĂNU MARINELA

2012-01-01

The new endogenous growth theories are a very important research area for shaping the most effective policies and long term sustainable development strategies. Endogenous growth theory has emerged as a reaction to the imperfections of neoclassical theory, by the fact that the economic growth is the endogenous product of an economical system.

INTERCONNECTIONS BETWEEN THE ECONOMIC STRUCTURE OF LOCAL SPENDING AND ECONOMIC GROWTH IN ROMANIA

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Bilan Irina

2015-07-01

Full Text Available The issue of the effects of government interventions, explicitly of the taxes and expenditures of local public authorities, has generated substantial debate over time, and still gives rise to numerous controversies in theory and practice. Following the Keynesian path of reasoning, it is, at least theoretically, admitted that it is possible to influence the socio-economic activities and support for economic growth by means of government spending, but different other factors act towards enhancing or, on the contrary, impeding the achievement of the desired effects. From this point of view, the delimitation of competences and public expenditure responsibilities between different levels of government raises the issue of some possible different effects of the central and local governments’ interventions. As the macroeconomic stabilization function is usually associated with central governments, and the contribution of local governments often is of lesser importance, less attention is paid to the effectiveness of local administrative actions. In such a context, the paper aims to empirically evaluate the effects of the economic structure of local public expenditures on the local (territorial economic growth in Romania, over the period 2007 to 2012. The analysis has been conducted at the level of the 42 Romanian counties and on annual data collected from both international and national sources (World Bank, INSSE, The Romanian Ministry of Regional Development and Public Administration.The general method of estimation is the fixed effects estimation technique for panel data models. Our empirical approach is of absolute novelty, especially for Romania, where previous empirical studies have been focusing on the assessment of the overall effects of general government spending. The main findings of our study are that local public expenditures have a negative impact on territorial economic growth, confirmed both for overall expenditures and for various

The economic growth of oil countries

International Nuclear Information System (INIS)

Arbod, G.

2007-02-01

The literature tries to apprehend the weakness of the economic growth of oil culminates by the assumption of ousted growth factors. In the Dutch Disease models the non-oil exporting sector would be ousted whereas in the analyses in terms of economic policies it would be the efficient economic policies. We consider the phenomenon through the growth theories, the oil income being regarded as an additional exogenous income for the economy. In this manner the growth dynamic of oil countries, even the most unfavourable, can be modelled without utilizing any concept of economic inefficiency. The last part of our work is devoted to the Saudi economy. After having developed a macro-econometric model, and using scenarios of oil prices, we lead a forecasted analysis of this economy. (author)

Effects of Credit on Economic Growth, Unemployment and Poverty

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Mangasa Augustinus Sipahutar

2016-06-01

              Effect of credit on economic growth, unemployment and poverty provides evidence from Indonesia on the role of banks credit for promoting economic growth and reducing both unemployment and poverty.  To document the link between banks credit and economic growth, we estimate a VAR model and variance decompositions of annual GDP per capita growth rates to examine what proxy measures of banks credit are most important in accounting for economic growth over time and how much they contribute to explaining economic growth.  We also estimate an ECM to document the relationship between banks credit to both unemployment and poverty.  This paper revealed bi-direction causality between banks credit and economic growth.  Banks credit promotes economic growth and economic growth affects credit depth and financial development.  Furthermore, banks credit is a growth accelerating factor on Indonesian economic growth.  Banks credit is an endogenous growth and a good predictor on Indonesian economy. Our estimation model explained that credit allocated by banks increases business escalation to the real sectors then promotes economic growth, decreases unemployment rate through increasing in labor demanded, increases income and then decrease poverty.  This overall transmission mechanism just occurred through presence of banks credit by increasing money supply to the real sectors, promotes growth and social welfare.   Keywords :  banks credit, economic growth, growth accelerating factor, poverty, unemployment   JEL Classification : E51, E52, E58

Does FDI influence economic growth in Albania?

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Aurel Koroci

2018-03-01

Full Text Available Foreign direct investment (FDI has been viewed as a power affecting economic growth (EG directly and indirectly during the past few decades. Foreign direct investment (FDI in developing countries brings economic development and enhances the international competitiveness of domestic enterprises. It is argued in the existing literature that foreign direct investment (FDI influences economic growth through technology diffusion, human capital formation, etc. FDI accounts for the largest and most important proportion of foreign capital in Albania, which undoubtedly plays an important role in the Albania’s economic development growth. However, as the country’s FDI increases, and in this paper I want to make an empirical research how the FDI has influenced the economic growth of the country. The findings revealed that there is a strong positive relationship between the FDI inflows and the GDP for the studied period which covers 1995 to 2012, thus a positive effect on the economic growth.

The Roles of Public Higher Education Expenditure and the Privatization of the Higher Education on U.S. States Economic Growth

Science.gov (United States)

Curs, Bradley R.; Bhandari, Bornali; Steiger, Christina

2011-01-01

Previous empirical literature finds that government expenditure on higher education has a negative, or null, effect on U.S. economic growth rates. This empirical result may be driven by omission of an important variable--the privatization of higher education. Using state-level panel data from 1970 to 2005, this analysis investigates whether the…

Economic growth and gender equality | IDRC - International ...

International Development Research Centre (IDRC) Digital Library (Canada)

And conversely, does gender equality impact economic growth? ... change and growth in the economy on women's employment opportunities and the type ... sectors and their overall effect on development outcomes, such as economic growth ...

An investigation on economic growth and tax: A case study of D8 countries from 1990 to 2009

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Nahid Abedini Najafabadi

2012-10-01

Full Text Available Experiences of different countries with efficient tax systems have shown that the high share of tax resources than non-tax sources could prevent many unpleasant economical events. In other words, an efficient tax system could ensure economic system against many different risks. Tax is also a primary source for developing economy used by government. In this study, we investigate the relationship between economic growth and tax among D8 countries using panel data from 1990 to 2009. The results indicate growth domestic product is the most important factor and these governments could collect more tax as the economic figures improve. The results of our survey show that an increase of one percent on GDP will increase taxable income for about 0.0014119 percent. The tourism has more impact since an increase of one unit in tourism's income; taxable income will increase for about 10.26257 units. One the contrary to other variables, unemployment has a negative impact on taxable income.

Economic openness and economic growth: A cointegration analysis for ASEAN-5 countries

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Klimis Vogiatzoglou

2016-11-01

Full Text Available The paper considers three channels of economic openness, namely FDI, imports, and exports, and examines their short-run and long-run effects on the economic growth in the five founding member countries of the Association of Southeast Asian Nations (ASEAN over the period from 1980 to 2014. Besides the impact on the economic growth, the authors analyze all possible causal interrelationships to discern patterns and directions of causality among FDI, imports, exports, and GDP. The quantitative analysis, which is based on the vector error correction co-integration framework, is conducted separately for each country in order to assess their individual experiences and allow for a comparative view. Although the precise details differ across countries, the findings indicate that there is a long-run equilibrium relationship between economic openness and GDP in all ASEAN-5 economies. FDI, imports and exports have a significantly positive short-run and long-run impact on the economic growth. Our results also show that export-led growth is the most important economic growth factor in most countries, followed by FDI-led growth. Another crucial finding is the bi-directional causality between exports and FDI across the ASEAN-5 countries. This indicates the presence of direct and indirect effects on GDP and a self-reinforcing process of causality between those two variables, which strengthens their impact on the economic growth.

DAMPAK FOREIGN DIRECT INVESTMENT TERHADAP PERTUMBUHAN EKONOMI INDONESIA; Studi Makroekonomi dengan Penerapan Data Panel

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Muhammad Kholis

2013-11-01

Full Text Available FDI (Foreign Direct Investment is believed to be one important source of financing for developing countries including Indonesia. The presence of FDI is expected to provide a substantial contribution to development through the transfer of assets, technology and managerial skills to improve an economic growth. This research analyzes the effect of FDI on economic growth in Indonesia in the period 2006 to 2010. The method of analysis used Pooled Least Square (PLS. The variables employed in this study are economic growth, growth of FDI, growth of export and growth of import. By applying the panel data model is expected to be known to what extent the presence of FDI in promoting economic growth in Indonesia. Calculation results showed that the growth of FDI and import growth have a negative impact on economic growth in Indonesia, while the growth of exports has a positive effect on economic growth. These results indicate that the main driver of economic growth still depends on exports. FDI (Foreign Direct Investment diyakini menjadi salah satu sumber penting pembiayaan bagi negara-negara berkembang termasuk Indonesia. Kehadiran FDI diharapkan dapat memberikan kontribusi yang besar bagi pembangunan melalui transfer aset, teknologi dan keterampilan manajerial untuk meningkatkan pertumbuhan ekonomi. Penelitian ini menganalisis pengaruh FDI terhadap pertumbuhan ekonomi di Indonesia pada periode 2006 hingga 2010. Metode analisis yang digunakan Pooled Least Square (PLS. Variabel yang digunakan dalam penelitian ini adalah pertumbuhan ekonomi, pertumbuhan FDI, pertumbuhan ekspor dan pertumbuhan impor. Dengan menerapkan model data panel ini diharapkan akan diketahui sejauh mana kehadiran FDI dalam meningkatkan pertumbuhan ekonomi di Indonesia. Hasil perhitungan menunjukkan bahwa pertumbuhan FDI dan pertumbuhan impor berdampak negatif pada pertumbuhan ekonomi di Indonesia, sedangkan pertumbuhan ekspor memiliki efek positif pada pertumbuhan ekonomi. Hasil ini

The Long and Short Run Effects between Unemployment and Economic Growth In Europe = Avrupa’da İşsizlik ve İktisadi Büyüme Arasında Uzun ve Kısa Dönemli Etkiler

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Ferda Yerdelen TATOĞLU

2011-01-01

Full Text Available In this paper, the movement of unemployment rate and the long and short term relationships between unemployment rate and economic growth rate are examined for individuals and pooled cases in European countries over the period 1977-2008. Several panel techniques are used for non-stationary panels and thereby some evidence are found for unemployment hysteresis in all European Countries. The Okun’s coefficients are also estimated. The results show that the validity of Okun’s Law and the significance of the relationship between economic growth rate and unemployment rate vary between countries.

Health Economics of Dengue: A Systematic Literature Review and Expert Panel's Assessment

Science.gov (United States)

Beatty, Mark E.; Beutels, Philippe; Meltzer, Martin I.; Shepard, Donald S.; Hombach, Joachim; Hutubessy, Raymond; Dessis, Damien; Coudeville, Laurent; Dervaux, Benoit; Wichmann, Ole; Margolis, Harold S.; Kuritsky, Joel N.

2011-01-01

Dengue vaccines are currently in development and policymakers need appropriate economic studies to determine their potential financial and public health impact. We searched five databases (PubMed, EMBASE, LILAC, EconLit, and WHOLIS) to identify health economics studies of dengue. Forty-three manuscripts were identified that provided primary data: 32 report economic burden of dengue and nine are comparative economic analyses assessing various interventions. The remaining two were a willingness-to-pay study and a policymaker survey. An expert panel reviewed the existing dengue economic literature and recommended future research to fill information gaps. Although dengue is an important vector-borne disease, the economic literature is relatively sparse and results have often been conflicting because of use of inconsistent assumptions. Health economic research specific to dengue is urgently needed to ensure informed decision making on the various options for controlling and preventing this disease. PMID:21363989

On the relationship between economic freedom and economic growth

NARCIS (Netherlands)

Haan, Jakob de; Sturm, Jan-Egbert

1999-01-01

Often it is maintained that economic freedom may further high levels of economic growth. This paper compares various indicators for economic freedom. It is concluded that although these measures differ somewhat in their coverage, they show similar rankings for the countries covered. Some elements in

Human capital demand in Brazil: The effects of adjustment cost, economic growth, exports and imports

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Joilson Dias

2015-01-01

Full Text Available The objective of this paper is to learn about the effects of the adjustment costs, economic growth, imports and exports on human capital labor demand. The dynamic model proposed by Sargent (1978 was adjusted to consider three types of human capital: (a one with fundamental education (1–8 years of schooling; (b one with secondary education level (9–11 years of education; (c and one with tertiary education level (12 years or more of schooling. Using state level panel data, the dynamic econometrics estimates showed the following results: (i the labor market adjustment costs are very higher; (ii the adjustment cost for the human capital with intermediary education level is the highest one compared to the others; (iii the states’ economic growth favor those with superior education; (iv the imports seems to favor the demand for those with intermediate education levels; (v the degree of openness does show some weak effect on the demand for human capitals with intermediate education. In sum, the growing demand for human capital with some superior education seems to be more associated to its lower adjustment cost and economic growth; the non-significance of real wage elasticity and high adjustment cost seems to indicate that the human capital with intermediate knowledge is in short supply; hence, economic education policy that increases supply of such human capital are in need.

The Relationship between Youth Unemployment and Economic Growth in Central and Eastern European Countries: An Empirical Analysis

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Leman ERDAL

2015-06-01

Full Text Available The study has analyzed the relationship between youth unemployment and economic growth, in the context of Okun law, by using new generation panel data analysis and cointegration tests. In this study, 18 Central and Eastern European country have been selected as subject matter whose youth unemployment rate is above the EU-28 average (25 % for the period 2006-2012. The results show that, if youth unemployment is quite severe; even an exclusive economic growth will not be enough to reduce the youth unemployment rate in the country. It is recommended that the global and country-specific policies which are effective, result-driven on youth (Un employment and labour market issues, should be developed. This study is expected to make a significant contribution to the literature on unemployment and social conflict.

On the causal dynamics between emissions, nuclear energy, renewable energy, and economic growth

Energy Technology Data Exchange (ETDEWEB)

Apergis, Nicholas [Department of Banking and Financial Management, University of Piraeus, Karaoli and Dimitriou 80, Piraeus, ATTIKI 18534 (Greece); Payne, James E. [Department of Economics, Illinois State University, Normal, IL 61790-4200 (United States); Menyah, Kojo [London Metropolitan Business School, London Metropolitan University, 84 Moorgate, London, EC2M 6SQ (United Kingdom); Wolde-Rufael, Yemane

2010-09-15

This paper examines the causal relationship between CO{sub 2} emissions, nuclear energy consumption, renewable energy consumption, and economic growth for a group of 19 developed and developing countries for the period 1984-2007 using a panel error correction model. The long-run estimates indicate that there is a statistically significant negative association between nuclear energy consumption and emissions, but a statistically significant positive relationship between emissions and renewable energy consumption. The results from the panel Granger causality tests suggest that in the short-run nuclear energy consumption plays an important role in reducing CO{sub 2} emissions whereas renewable energy consumption does not contribute to reductions in emissions. This may be due to the lack of adequate storage technology to overcome intermittent supply problems as a result electricity producers have to rely on emission generating energy sources to meet peak load demand. (author)

ECONOMIC GROWTH - AN ILLUSION? STUDY CASE:ROMANIA

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Camelia MORARU

2013-12-01

Full Text Available Literature has devoted considerable attention to economic growth because it creates the premises for achieving major goals such as route out of poverty of underdeveloped countries or contribute to raising the standard of living in developed countries. Economic growth has become an “order of the day” term, propagated by various "players" of economic and social life, in this way gaining various interpretations and meanings. This paper presents the results of the measures adopatate in order to recover Romanian economic situation. The austerity measures adopted until recently not allowed, however, to create a favorable environment for growth, taking into consideration that it is almost impossible for an economy to grow when conditions are limiting. Fiscal policies have focused on reducing the budget deficit, which led on slaughtering economic growth. Given the uncertain economic context, FDI was hardly drew into our country, their value last year has been insignificant. We can even say that the previous ended year was one economically, because our country did not recognize the road to the economic recovery.

Electricity consumption and economic growth: evidence from Korea

International Nuclear Information System (INIS)

Yoo, Seung-Hoon

2005-01-01

This paper investigates the short- and long-run causality issues between electricity consumption and economic growth in Korea by using the co-integration and error-correction models. It employs annual data covering the period 1970-2002. The overall results show that there exists bi-directional causality between electricity consumption and economic growth. This means that an increase in electricity consumption directly affects economic growth and that economic growth also stimulates further electricity consumption

The role of energy in economic growth.

Science.gov (United States)

Stern, David I

2011-02-01

This paper reviews the mainstream, resource economics, and ecological economics models of growth. A possible synthesis of energy-based and mainstream models is presented. This shows that when energy is scarce it imposes a strong constraint on the growth of the economy; however, when energy is abundant, its effect on economic growth is much reduced. The industrial revolution released the constraints on economic growth by the development of new methods of using coal and the discovery of new fossil fuel resources. Time-series analysis shows that energy and GDP cointegrate, and energy use Granger causes GDP when capital and other production inputs are included in the vector autoregression model. However, various mechanisms can weaken the links between energy and growth. Energy used per unit of economic output has declined in developed and some developing countries, owing to both technological change and a shift from poorer quality fuels, such as coal, to the use of higher quality fuels, especially electricity. Substitution of other inputs for energy and sectoral shifts in economic activity play smaller roles. © 2011 New York Academy of Sciences.

Retail payments and economic growth

OpenAIRE

Hasan, Iftekhar; De Renzis, Tania; Schmiedel , Heiko

2012-01-01

This paper examines the fundamental relationship between retail payments and overall economic growth. Using data from across 27 European markets over the period 1995–2009, the results confirm that migration to efficient electronic retail payments stimulates overall economic growth, consumption and trade. Among different payment instruments, this relationship is strongest for card payments, followed by credit transfers and direct debits. Cheque payments are found to have a relatively low macro...

Political regime change, economic liberalization and growth accelerations

NARCIS (Netherlands)

Jong-A-Pin, Richard; De Haan, Jakob

We examine whether the type of political regime, regime changes, and economic liberalization are related to economic growth accelerations. Our results show that growth accelerations are preceded by economic liberalizations. We also find that growth accelerations are less likely to happen the longer

Economic Recovery: Sustaining U.S. Economic Growth in a Post-Crisis Economy

Science.gov (United States)

2010-07-22

Mankiw , Principles of Economics (Ft. Worth, Dryden Press, 1998), p556, and Robert J. Barro, “Are Government Bonds Net Wealth?” Journal of Political...CRS Report for Congress Prepared for Members and Committees of Congress Economic Recovery: Sustaining U.S. Economic Growth in a Post...2. REPORT TYPE 3. DATES COVERED 00-00-2010 to 00-00-2010 4. TITLE AND SUBTITLE Economic Recovery: Sustaining U.S. Economic Growth in a Post

Photonically wired spacecraft panels: an economic analysis and demonstrator for telecommunication satellites

Science.gov (United States)

Putzer, Philipp; Hurni, Andreas; Ziegler, Bent; Panopoulou, Aikaterini; Lemke, Norbert; Costa, Ivo; Pereira, Celeste

2017-09-01

In this paper we present the design of smart satellite panels with integrated optical fibers for sensing and data communication. The project starts with a detailed analysis of the system needs and ends with a demonstrator breadboard showing the full performance during and after environmental tests such as vibrations and temperature. Future science missions will need higher bandwidth in the Gbit/s range for intra-satellite communications, so the step from electrical transmission media towards fiber-optical media is the logical next step to cope with future requirements. In addition, the fibers can be used to monitor temperatures directly underneath satellite payloads which will reduce the integration effort in a later phase. For temperature monitoring so called fiber Bragg gratings (FBGs) are written in special radiation tolerant fibers, which reflection wavelength allows a direct link to temperature at the grating position. A read-out system for FBGs to use within satellite applications is currently under development at OHB. For this study, first the environmental requirements for the panels are derived and in a second stage the functional requirements are defined. To define the functional requirements a telecommunication satellite platform, in the case here the Small-GEO series from OHB, has been taken as baseline. Based on the configuration of temperature sensors, communication lines and electrical signaling a possible replacement by fiber-optical technology was defined and traded w.r.t. its economic benefit. It has been pointed out that the replacement of temperature sensors will reduce harness mass, but the great benefit is seen here in the reduction of assembly effort. Once the satellite panel is manufactured, the temperature sensors are already implemented at certain positions. Another point for mass savings which has pointed out is the replacement of the high-voltage or high- current high power commands (HPC) by fiber optics. Replacing some of the several

Economic Growth as a Factor of Political Stability

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Анна Олеговна Ярославцева

2015-12-01

Full Text Available The article analyzes actual problems of the impact of economic growth on the political stability of different state. The author shows that despite the undoubted correlation of the level of economic development and political stability, economic growth by itself is not a panacea for destabilization risks because of the effects of inflated expectations and transformations of social consciousness. The author argues that the impact of economic growth on political stability is largely ambivalent. On the basis of “Tocqueville's law” and the range of theories of “relative deprivation”, the author makes a conclusion about the principal limitations of predictive and interpretive capabilities of economic indicators (primarily economic growth for the analysis of political stability.

THE CONNECTION BETWEEN ECONOMIC GROWTH AND STOCK MARKETS

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Andreea Maria PECE

2015-04-01

Full Text Available This paper examines the connection between economic growth and stock market performance in the case of an emerging economy, namely Romania, by using quarterly financial data, during the period 2000-2013. This topic is widely studied in the financial literature and seeks to provide an answer for the following questions: does economic growth influences the capital market, does capital market influences economic growth, or there is no connection between these variables. I have analyzed the long term relationship between economic growth and stock market for Romania, by applying Johansen cointegration test, Granger causality and Gregory Hansen cointegration test, which allows the presence of the structural breaks in the time series. The empirical results obtained highlighted that portfolio investments have a positive impact on economic growth and the GDP growth engages in turn, a long term positive capital markets return. The main conclusion of this study is that in the case of Romanian economy, is a bi-directional link between the economic growth and the capital market performance.

What Drives Economic Growth in Some CEE Countries?

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Simionescu Mihaela

2018-03-01

Full Text Available Considering the potential factors that might generate economic growth, a target for any economy, this paper identified some determinants of economic growth in the countries from Central and Eastern Europe (CEE countries that are member states of the European Union. The foreign direct investment was the most important determinant of economic growth in most of the countries (Bulgaria, Slovenia, Estonia, Hungary, Romania, Poland, Latvia, Lithuania in the period 2003-2016, according to Bayesian bridge regressions. The indicators related to the level and the quality of labour resources proved to be insignificant in explaining the economic growth in these countries. Moreover, in Croatia, Estonia, Latvia, Lithuania, and Poland, the government expenditure on education had a negative effect on economic growth.

EVIDENCE ON EMPLOYMENT RATE AND ECONOMIC GROWTH

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Cornelia VĂCEANU

2014-11-01

Full Text Available This paper explores a causal relationship between employment rate and economic growth for European Union countries, in general, and produces a structural assessment of employment on the background of labour market dynamics. Economic growth is the key in economic theory and the main source of well-being and quality of life. Since the 2008 financial crisis, most European countries have experienced job shortage and unemployment problem, but today's European economic outlook is strengthening on the bases of a GDP growing momentum. Empirical data shows, regardless the GDP's moderate positive trend, the employment rate did not increase enough. Given this, the present analysis address the question: to what extent the employment rate is affected by economic growth?

Empirical Investigation of External Debt-Growth Nexus in Sub ...

African Journals Online (AJOL)

Empirical Investigation of External Debt-Growth Nexus in Sub-Saharan Africa. ... distributed lag (PARDL) model and panel non-linear autoregressive distributed lag (PNARDL) model to examine the relationship between external debt and economic growth using a panel dataset of 22 countries from 1985 to 2015. Its results ...

Robust analysis of the determinants of healthcare expenditure growth: evidence from panel data for low-, middle- and high-income countries.

Science.gov (United States)

Younsi, Moheddine; Chakroun, Mohamed; Nafla, Amine

2016-10-01

This paper examines the determinants of healthcare expenditure for low-, middle- and high-income countries, and it quantifies their influences in order to assess policies for achieving universal health coverage. We elaborate two models, a fixed-effect model and the dynamic panel model, to estimate the factors associated with the total health expenditure growth as well as its major components for 167 countries over the period of 1993-2013. The panel data on total health expenditure per capita and its components were taken from the World Development Indicators. Overall, our results showed that total health expenditure per capita is rising in all countries over time as a result of rising incomes. However, our estimates showed that the income elasticity of health expenditure ranged from 0.75 to 0.96 in the fixed-effect static panel model, while in the dynamic panel model, it was smaller and ranged from 0.16 to 0.47. Our empirical findings indicate that development assistance for health reduced government domestic spending on health but increased total government health spending. Our results also indicate that the trend in health expenditure growth is significantly depending with the country's economic development. In addition, out-of-pocket expenditure is powerfully influenced by a country's capacity to increase general government revenues and social insurance contributions. Knowledge of factors associated to health expenditure might help policy makers to make wise judgments, plan health reforms and allocate resources efficiently. Copyright © 2016 John Wiley & Sons, Ltd. Copyright © 2016 John Wiley & Sons, Ltd.

Economic growth factors system: theoretical and methodological aspect

OpenAIRE

H.Ya. Hlukha

2014-01-01

The aim of the article. The main objective of the article is to create theoretical grounds to build the system of economic growth factors, to modernize their classification, to define exogenous and endogenous factors, to analyze them within the state economic policy structure. The results of the analysis. The article focuses on economic growth factors theoretical studies: - economic growth factors classification characteristics have been highlighted; - various approaches to determine...

What are the "ingredients" for economic growth?

OpenAIRE

Wolla, Scott A.

2013-01-01

Is there a recipe for economic growth? Perhaps some Miracle-Gro for the economy? If only it were that easy. While the exact recipe is a mystery, economists have identified some of the key ingredients. This month’s newsletter discusses the role that economic institutions play in fostering long-term economic growth.

Does the internet generate growth, international trade, or both?

NARCIS (Netherlands)

Meijers, H.H.M.

2014-01-01

Recent cross country panel data studies find a positive impact of internet use on economic growth and a positive impact of internet use on trade. The present study challenges the first finding by showing that internet use does not explain economic growth directly in a fully specified growth model.

Health, "illth," and economic growth: medicine, environment, and economics at the crossroads.

Science.gov (United States)

Egger, Garry

2009-07-01

Economic growth has been the single biggest contributor to population health since the Industrial Revolution. The growth paradigm, by definition, is dynamic, implying similar diminishing returns on investment at both the macro- and the micro-economic levels. Changes in patterns of health in developing countries, from predominantly microbial-related infectious diseases to lifestyle-related chronic diseases (e.g., obesity, type 2 diabetes) beyond a point of economic growth described as the epidemiologic transition, suggest the start of certain declining benefits from further investment in the growth model. These changes are reflected in slowing improvements in some health indices (e.g., mortality, infant mortality) and deterioration in others (e.g., disability-associated life years, obesity, chronic diseases). Adverse environmental consequences, such as climate change from economic development, are also related to disease outcomes through the development of inflammatory processes due to an immune reaction to new environmental and lifestyle-related inducers. Both increases in chronic disease and climate change can be seen as growth problems with a similar economic cause and potential economic and public health-rather than personal health-solutions. Some common approaches for dealing with both are discussed, with a plea for greater involvement by health scientists in the economic and environmental debates in order to deal effectively with issues like obesity and chronic disease.

Energy efficiency, sustainability and economic growth

International Nuclear Information System (INIS)

Ayres, Robert U.; Turton, Hal; Casten, Tom

2007-01-01

This paper explores two linked theses related to the role energy in economic development, and potential sources of increased energy efficiency for continued growth with reduced greenhouse gas (GHG) emissions. The first thesis is that, while reduced GHG emissions are essential for long-term global sustainability, the usual policy recommendation of increasing energy costs by introducing a carbon tax may be relatively ineffective under current market structures and have an unnecessarily adverse impact on economic growth. Our second thesis is that there exists a practical near-term strategy for reducing GHG emissions while simultaneously encouraging continued technology-driven economic growth. Moreover, this strategy does not require radical new technologies, but rather improved regulation or-more precisely-better deregulation of the electric power sector. In respect to the first of our two theses, this paper addresses a deficiency in neoclassical economic growth theory, in which growth is assumed to be automatic, inevitable and cost-free. We challenge both the assumption that growth will continue in the future at essentially the same rate ('the trend') as it has in the past, and the corollary that our children's children will inevitably be richer and better able to afford the cost of repairing the environmental damages caused by current generations [Simon et al., The state of humanity. Cambridge MA: Blackwell Publishers Ltd.; 1995

Education and Economic Growth in Nigeria: A Granger Causality ...

African Journals Online (AJOL)

FIRST LADY

expenditures on education, primary school enrolment and economic growth. The tests revealed ..... force possessed a positive and significant impact on economic growth through factor ..... Export and Economic Growth in Namibia: A Granger ...

Medical Tourism and Its Implication on Malaysia's Economic Growth

OpenAIRE

Tang, Chor Foon

2015-01-01

Policymakers in the developed and developing countries already heading toward medical tourism to stimulate economic growth. Nonetheless, the actual impact of medical tourism on economic growth remains ambiguous. Although medical tourism may spur economic growth via its impact on foreign currency earnings, investments, tax revenue, and employment opportunities, it may also leave numerous negative externalities that either direct or indirectly harmful the process of economic growth. Undeniably,...

Regional Economic Growth; Socio-Economic Disparities among Counties

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Salih Özgür SARICA

2014-12-01

Full Text Available State level economy has always been relying on its major metropolitan area’s economic success. So, such metropolitan agglomerations have been considered the only agents that can foster the state’s economic standing as if other economic places do (or may not have significant contribution to the regional economy. In contrast, as some major cities enhance their economic well-being and agglomerate in specialized sector, the rest of the region lose their economic grounds or stay constant by widening the economic gap among cities. Therefore, an institutional approach can help to establish new regional arrangements to substitute all economic places to coordinate each other and succeed the economic growth as part of state government by reducing the disparities. In this sense, this study builds upon the inquiry that seeks the impacts of some economic disparities among economic places (counties on the performances of state level regional economy.

Fiscal Policy and Economic Growth in Nigeria

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Sylvia Uchenna Agu

2015-11-01

Full Text Available This article aims at determining the impact of various components of fiscal policy on the Nigerian economy. We simply used descriptive statistics to show contribution of government fiscal policy to economic growth, and to ascertain and explain growth rates, and an ordinary least square (OLS in a multiple form to ascertain the relationship between economic growth and government expenditure components after ensuring data stationarity. Findings revealed that total government expenditures have tended to increase with government revenue, with expenditures peaking faster than revenue. Investment expenditures were much lower than recurrent expenditures evidencing the poor growth in the country’s economy. Hence, there is some evidence of positive correlation between government expenditure on economic services and economic growth. Therefore, in public spending, it is important to note that the effectiveness of the private sector depends on the stability and predictability of the public incentive framework, which promotes or crowds out private investment.

Institutions, Technological Change and Economic Growth

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David Corderí Novoa

2005-01-01

Full Text Available Theories of economic growth try to explain variations in per capita income across countries by differences in capital accumulation and productivity. However, many scholars consider that integrating institutions into economic theory and economic history is an essential step in improving explanations of why some societies are richer than others. This paper develops the empirical and theoretical case that differences in institutions are the fundamental cause of differences in technological change (productivity, hence in economic growth. First, I give a definition of institutions and how they influence economic performance, from a New Institutional Economics point of view. Then, I introduce the theoretical framework based on the economics of ideas and endogenous growth models. Finally, I argue that R&D expenditures -a proxy for technological change- will vary across countries depending on some measures of institutional quality. In the end, this paper finds that stronger institutions (measured by an aggregate of institutional quality encourage greater R&D expenditures. At a disaggregate level, the rule of law is positively correlated and the regulatory burden is negatively correlated with R&D expenditures. Human capital level (measured by the tertiary and primary school enrolment rates has also a significant positive impact in R&D expenditures.

ANALYSIS OF FACTORS WHICH AFFECTING THE ECONOMIC GROWTH

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Suparna Wijaya

2017-03-01

Full Text Available High economic growth and sustainable process are main conditions for sustainability of economic country development. They are also become measures of the success of the country's economy. Factors which tested in this study are economic and non-economic factors which impacting economic development. This study has a goal to explain the factors that influence on macroeconomic Indonesia. It used linear regression modeling approach. The analysis result showed that Tax Amnesty, Exchange Rate, Inflation, and interest rate, they jointly can bring effect which amounted to 77.6% on economic growth whereas the remaining 22.4% is the influenced by other variables which not observed in this study. Keywords: tax amnesty, exchange rates, inflation, SBI and economic growth

Economic Growth and the Environment. An empirical analysis

Energy Technology Data Exchange (ETDEWEB)

De Bruyn, S.M.

1999-12-21

A number of economists have claimed that economic growth benefits environmental quality as it raises political support and financial means for environmental policy measures. Since the early 1990s this view has increasingly been supported by empirical evidence that has challenged the traditional belief held by environmentalists that economic growth degrades the environment. This study investigates the relationship between economic growth and environmental quality and elaborates the question whether economic growth can be combined with a reduced demand for natural resources. Various hypotheses on this relationship are described and empirically tested for a number of indicators of environmental pressure. The outcome of the tests advocates the use of alternative models for estimation that alter conclusions about the relationship between economic growth and the environment and give insight into the driving forces of emission reduction in developed economies. refs.

Human Capital Investment and Economic Growth in Nigeria ...

African Journals Online (AJOL)

Human Capital Investment and Economic Growth in Nigeria. ... relationship between investment in education, health and economic growth in Nigeria, ... in order to accelerate growth and liberate Nigerians from the vicious cycle of poverty, the ...

Study on Spatial Spillover Effects of Logistics Industry Development for Economic Growth in the Yangtze River Delta City Cluster Based on Spatial Durbin Model.

Science.gov (United States)

Xu, Xinxing; Wang, Yuhong

2017-12-04

The overall entropy method is used to evaluate the development level of the logistics industry in the city based on a mechanism analysis of the spillover effect of the development of the logistics industry on economic growth, according to the panel data of 26 cities in the Yangtze River delta. On this basis, the paper uses the spatial durbin model to study the direct impact of the development of the logistics industry on economic growth and the spatial spillover effect. The results show that the direct impact coefficient of the development of the logistics industry in the Yangtze River Delta urban agglomeration on local economic growth is 0.092, and the significant spatial spillover effect on the economic growth in the surrounding area is 0.197. Compared with the labor force input, capital investment and the degree of opening to the world, and government functions, the logistics industry's direct impact coefficient is the largest, other than capital investment; the coefficient of the spillover effect is higher than other control variables, making it a "strong engine" of the Yangtze River Delta urban agglomeration economic growth.

Economic growth and poverty alleviation in Africa - linking hard and soft economics

DEFF Research Database (Denmark)

Kuada, John

2014-01-01

soft and hard economics, arguing that economic growth must be converted into social change that benefits poor for it to be described as development-oriented. It provides a direction for future research into issues of economic growth and poverty alleviation in Sub-Sahara Africa......This paper provides a quick glance at the dominant issues that have characterized the development economics debate during the past five decades. It is based on a review of a selection of literature that highlights the dominant perspectives in development economics. It draws a distinction between...

Robust Determinants of Growth in Asian Developing Economies: A Bayesian Panel Data Model Averaging Approach

OpenAIRE

LEON-GONZALEZ, Roberto; VINAYAGATHASAN, Thanabalasingam

2013-01-01

This paper investigates the determinants of growth in the Asian developing economies. We use Bayesian model averaging (BMA) in the context of a dynamic panel data growth regression to overcome the uncertainty over the choice of control variables. In addition, we use a Bayesian algorithm to analyze a large number of competing models. Among the explanatory variables, we include a non-linear function of inflation that allows for threshold effects. We use an unbalanced panel data set of 27 Asian ...

Exports, capital formation and economic growth in South Africa ...

African Journals Online (AJOL)

In South Africa the export sector is frequently accorded a special role in encouraging faster economic growth. Nonetheless, a question that remains unresolved is whether higher export growth indeed leads to higher economic growth and what particular role exports may play within the overall economic growth process of the ...

NIGERIA’S ECONOMIC GROWTH THROUGH TOURISM PROMOTION/SUSTAINABILITY

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Victor N. ITUMO

2017-08-01

Full Text Available Nigeria is currently facing economic growth and development challenge. The economic challenge is occasioned by mono-cultural economic reliance on the single resource of crude oil export revenue as well as other internal and international effects that affect her economic drive for heightened growth and development. The Nigerian government had over the years searched for ways of diversifying its economy for greater growth and development especially given the various challenges in the economy, mainly the steep reduction in crude oil revenue arising from volatility of global oil price. This paper therefore uses the research methodology of case study to do a holistic assessment of the possibility of Nigeria diversifying into her tourism potentials for economic growth and development. This would be done equally by drawing relevant comparative analysis of other countries bringing economic benefits in Africa and across the globe.

Electrification, economic growth and uranium power

International Nuclear Information System (INIS)

Starr, C.

1982-01-01

It is argued that the expanded use of nuclear power is essential to provide a substantial portion of the electricity necessary for world economic growth. However, obstacles to this growth arise not from the technology but rather from the inadequacies of our industrial, political, and economic institutions needed to manage this new energy system effectively, nationally and internationally. (U.K.)

Total Factor Productivity Convergence in Africa: Panel Unit Root ...

African Journals Online (AJOL)

The study tested absolute and conditional convergence of Total Factor Productivity in Africa using a sample of 23 countries and TFP data covering the period between 1960 and 2003 while deploying the panel unit root methodology. Countries that have experienced sustained economic growth rate are found to have ...

Foreign direct investment and economic growth: A theoretical framework

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Edmore Mahembe

2014-05-01

Full Text Available The relationship between FDI and economic growth has attracted considerable attention over the years. Despite the important role played by FDI in economic growth, a number of policy-makers have not fully understood the theoretical linkage between FDI and economic growth. The aim of this paper, therefore, is to review the theoretical literature on the relationship between FDI and economic growth in a stylized fashion. The theoretical literature reviewed in this study show that FDI is a key contributor to the economic growth of the host country. FDI affects economic growth through two broad channels: (i FDI can encourage the adoption of new technologies in the production process through technological spillovers; and (ii FDI may stimulate knowledge transfers, both in terms of labour training and skill acquisition, and also by introducing alternative management practices and better organisational arrangements.

Trade Liberalisation and Economic Growth in Macedonia

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Mano-Bakalinov Viktorija

2016-12-01

Full Text Available The objective of this paper is to explore the effects of trade on Macedonian economic growth. The autoregressive distributed lag (ARDL model is applied on yearly data over the period of 1993-2014. Empirical investigation reveals that an increase of population and openness demonstrate a positive and significant effect on Macedonian economic growth. Given other diverging findings, this suggests that the relationship between trade reforms and growth through the productivity function may vary across transition economies. Nevertheless, the findings of this paper indicate that policies focusing on market liberalisation and opening the economy to trade have a positive effect on Macedonian economic growth, both in the short run and the long run.

Effects of Credit on Economic Growth, Unemployment and Poverty

OpenAIRE

Sipahutar, Mangasa Augustinus

2016-01-01

Abstract               Effect of credit on economic growth, unemployment and poverty provides evidence from Indonesia on the role of banks credit for promoting economic growth and reducing both unemployment and poverty.  To document the link between banks credit and economic growth, we estimate a VAR model and variance decompositions of annual GDP per capita growth rates to examine what proxy measures of banks credit are most important in accounting for economic growth over time and ho...

TOURIST ARRIVALS AND ECONOMIC GROWTH IN SARAWAK

OpenAIRE

Lau, Evan; Oh, Swee-Ling; Hu, Sing-Sing

2008-01-01

This study empirically investigates the comovements and the causality relationship between tourist arrivals and economic growth in Sarawak during the period of 1972 to 2004. The empirical evidence clearly shows that the long run causality running from tourist arrivals to economic growth in the estimation period. As one of the income generator for Sarawak, the findings are consistent with economic theory and proffer important policy conclusions.

The Key to Promoting Economic Growth

Institute of Scientific and Technical Information of China (English)

2009-01-01

The low contribution of consumption to economic growth has become a source of anxiety for Chinese economic officials. With a sharp decline in exports as a result of the international financial crisis, the Chinese Government hopes that consumption will become a new engine of economic growth. The aim of promoting domestic demand is very clear in the 4-trillion-yuan ($586-billion) economic stimulus package the government approved last fall. How should we assess the present situation of consumption in China and its future course? At the Global Think Tank Summit held in Beijing on July 4, Ma Jiantang, Commissioner of the National Bureau of Statistics, Wang Guangqian, President of the Central University of Finance and Economics, and Yuan Yue, Chairman of the Board of Horizon Research Consultancy Group, shared their opinions.

Problems of social and economic growth in the Kyrgyz Republic

Directory of Open Access Journals (Sweden)

Guseva Valentina Ivanovna

2016-04-01

Full Text Available In the article author explores the indirect influence of non-economic factors on the growth dynamics of the volume of GDP, including shows the effect of social problems on economic growth. It is proved that the existence of social problems have a negative impact on the pace of the economic dynamics of the country, due to the mutual dependence of key economic and non-economic factors of growth. On the one hand, the level of income of the population affects the purchasing power, which leads to the increase of the acceleration in economic growth. On the other hand, high levels of poverty and a deepening income inequality dictate political and social instability in society, which negatively affects the dynamics of economic growth. It was revealed that the feature of economic growth in the transitional economy is the negative impact of inflation and unemployment rates of economic dynamics, despite the fact that in most Western models, they are not considered as limiting growth factors.

Fourth-quarter Economic Growth and Time-varying Expected Returns

DEFF Research Database (Denmark)

Møller, Stig V.; Rangvid, Jesper

not predict returns. Fourth-quarter economic growth rates contain considerably more information about expected returns than standard variables used in the literature, are robust to the choice of macro variable, and work in-sample, out-of-sample, and in subsamples. To help explain these results, we show...... that economic growth and growth in consumer confidence are correlated during the fourth quarter, but not during the other quarters: When economic growth is low during the fourth quarter, confidence in the economy is also low such that investors require higher future returns. We discuss rational and behavioral...... reasons why fourth-quarter economic growth, growth in consumer confidence, and expected returns are related....

Multivariate granger causality between electricity consumption, exports and GDP: Evidence from a panel of Middle Eastern countries

International Nuclear Information System (INIS)

Narayan, Paresh Kumar; Smyth, Russell

2009-01-01

This paper examines the causal relationship between electricity consumption, exports and gross domestic product (GDP) for a panel of Middle Eastern countries. We find that for the panel as a whole there are statistically significant feedback effects between these variables. A 1 per cent increase in electricity consumption increases GDP by 0.04 per cent, a 1 per cent increase in exports increases GDP by 0.17 per cent and a 1 per cent increase in GDP generates a 0.95 per cent increase in electricity consumption. The policy implications are that for the panel as a whole these countries should invest in electricity infrastructure and step up electricity conservation policies to avoid a reduction in electricity consumption adversely affecting economic growth. Further policy implications are that for the panel as a whole promoting exports, particularly non-oil exports, is a means to promote economic growth and that expansion of exports can be realized without having adverse effects on energy conservation policies

DETERMINANTS OF ECONOMIC GROWTH

OpenAIRE

Bartosz Totleben

2013-01-01

The article is examines the impact of macroeconomic indicators, in particular: human capital, government spending, innovation, political and social stability, on economic growth. In total 12 different indicators describing the economical, political and social conditions are taken into account. The study considers 102 countries between years 1960 and 2012 and two methods of estimation are performed: generalized method of moments (GMM) and fixed effects (FE). The results show the positive impac...

Oil prices, fiscal policy, and economic growth in oil-exporting countries

Science.gov (United States)

El-Anshasy, Amany A.

This dissertation argues that in oil-exporting countries fiscal policy could play an important role in transmitting the oil shocks to the economy and that the indirect effects of the changes in oil prices via the fiscal channel could be quite significant. The study comprises three distinct, yet related, essays. In the first essay, I try to study the fiscal policy response to the changes in oil prices and to their growing volatility. In a dynamic general equilibrium framework, a fiscal policy reaction function is derived and is empirically tested for a panel of 15 oil-exporters covering the period 1970--2000. After the link between oil price shocks and fiscal policy is established, the second essay tries to investigate the impact of the highly volatile oil prices on economic growth for the same sample, controlling for the fiscal channel. In both essays the study employs recent dynamic panel-data estimation techniques: System GMM. This approach has the potential advantages of minimizing the bias resulting from estimating dynamic panel models, exploiting the time series properties of the data, controlling for the unobserved country-specific effects, and correcting for any simultaneity bias. In the third essay, I focus on the case of Venezuela for the period 1950--2001. The recent developments in the cointegrating vector autoregression, CVAR technique is applied to provide a suitable framework for analyzing the short-run dynamics and the long-run relationships among oil prices, government revenues, government consumption, investment, and output.

Income taxes, public fiscal policy and economic growth

Directory of Open Access Journals (Sweden)

Tomasz Wołowiec

2014-12-01

Full Text Available The main goal of this article is to find the relationship between public fiscal policy and economic growth. The article consist of a few parts. The first is an introduction, which creates the background for the analysis in the following sections. It shows the main point of view on public fiscal policy especially in the case of personal income tax and creates a framework for the analysis of the relationship between taxation and economic growth. The second part focuses on the relations between central government decisions on taxation and its influence on savings, investments and economic growth. In this part we will find selected analyses of the impact of taxes on economic growth based on the examples of OECD countries. Finally, the last part of the work is a study on fiscal level and tax system structures and economic growth. In this part the authors checks two points of view on taxation. The first is that a low level tax burden is conducive to economic growth, and the second emphasizes negative consequences of decreasing budget tax revenues. The article shows both theoretical and empirical points of view on taxation and influence of government taxation decisions on the economy.

Parameters of Economic Growth in Kosovo

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Shkumbin Misini

2016-01-01

Full Text Available This paper analysis the macroeconomic components that influenced macroeconomic growth in a country, more concretely, the focus will be on the measurement of components that affected economic growth under nominal GDP, in Kosovo. We intend to found out which component of nominal GDP has the biggest and the lowest influence on economic growth. Thus, in order to measure it, GDP components must be analysed: consumption measurement, investments measurement, government expenditures measurement and export measurement. These parameters will be measured by analysing their importance in relation to one another, and the major influence on the growth of nominal GDP. The paper includes a graphic analysis of nominal GDP in relation to consumption, investments, governmental expenses and export.

Financial Development Following Economic Growth: The Chinese Case

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Chan il Park

2003-06-01

Full Text Available The purpose of this paper is to investigate the relationship between financial development and economic growth based on Chinese experiences during the period of 1979~2000. This study places more emphasis on the causality running from economic growth to financThe purpose of this paper is to investigate the relationship between financial development and economic growth based on Chinese experiences during the period of 1979~2000. This study places more emphasis on the causality running from economic growth to financial development contrary to the mainstream view, which asserts that the well-functioning financial systems exert a large positive impact on economic growth via two channels- capital accumulation and technological innovations. The reverse causality is postulated by considering two factors in developments of the country's financial system. Firstly, this paper argues that the rapid accumulation of financial assets and the remarkable expansion of the financial system during the examined period are due primarily to income rises and changes in industrial structures rather than inefficient financial reforms. Secondly, it is recognized in this study that various financial reform measures undertaken by the state since 1994 are emerged endogenously in response to Chinese financial disorders and macroeconomic imbalances built up during the 1979~93 period. This line of thinking is not following the mainstream view in which financial reforms are regarded as policy variables (or exogenous variables in promoting economic growth. These two factors imply that the causality may run from economic growth to financial development at least in China.

Sociopolitical Instability and Economic Growth Empirical Evidence from Sri Lanka

OpenAIRE

Changsheng Xu; Santhirasegaram Selvarathinam; Wen X. Li

2007-01-01

Sociopolitical instability severely affects economic growth in short and long run. This study analyzes that sociopolitical instability measured by proxy measure; annual growth rate of tourist arrivals in Sri Lanka during 1960-2005 adversely affects economic growth. Our empirical findings based on ordinary lease square econometric estimation, show that sociopolitical instability negatively and significantly affect economic growth. Reduction of economic growth rate (-0.032) due to the sociopoli...

Integrated LED/Imaging Illumination Panels Demonstrated within a Small Plant Growth Chamber Project

Data.gov (United States)

National Aeronautics and Space Administration — LED light sources are ideal for plant growth systems. However, commercially available multi-color LED illumination panels are designed and manufactured to produce a...

The South African tax mix and economic growth

OpenAIRE

AH de Wet; NJ Schoeman; SF Koch

2014-01-01

The research reported in this paper suggests that government fiscal policy can influence economic growth through alterations in the tax mix and the overall size of government spending.   The authors estimate the impact on economic growth of changes in fiscal policy via government expenditure, direct taxation and indirect taxation.  The results show that economic growth is negatively affected by increases in the size of government, as reflected in its expenditures and direct tax revenues, alth...

FINANCIAL INTERMEDIATION, ENTREPRENEURSHIP AND ECONOMIC GROWTH

OpenAIRE

Wenli Cheng

2007-01-01

This paper presents a simple general equilibrium model of financial intermediation, entrepreneurship and economic growth. In this model, the role of financial intermediation is to pool savings and to lend the pooled funds to an entrepreneur, who in turn invests the funds in a new production technology. The adoption of the new production technology improves individual real income. Thus financial intermediation promotes economic growth through affecting individuals’ saving behaviour and enabl...

Economic Growth and Sustainable Housing: An Uneasy Relationship

DEFF Research Database (Denmark)

Buch-Hansen, Hubert

2017-01-01

Book review of: "Economic Growth and Sustainable Housing: An Uneasy Relationship" by Jin Xue (Routledge, 2014)......Book review of: "Economic Growth and Sustainable Housing: An Uneasy Relationship" by Jin Xue (Routledge, 2014)...

Does political and economic freedom matter for inbound tourism? A cross-national panel data estimation

OpenAIRE

Saha, Shrabani; Su, Jen-Je; Campbell, Neil

2017-01-01

The paper examines the impact of political and economic freedom on inbound tourism for over 110 countries during 1995-2012. Panel country fixed-effects techniques are utilized to examine the relationship after controlling for other factors that contribute to inbound tourism. The results show that civil liberties and economic freedom (among several other freedom measures) are positively and significantly associated with inbound tourism. Examination of the moderation effect revea...

Nuclear energy consumption and economic growth in nine developed countries

International Nuclear Information System (INIS)

Wolde-Rufael, Yemane; Menyah, Kojo

2010-01-01

This article attempts to test the causal relationship between nuclear energy consumption and real GDP for nine developed countries for the period 1971-2005 by including capital and labour as additional variables. Using a modified version of the Granger causality test developed by Toda and Yamamoto (1995), we found a unidirectional causality running from nuclear energy consumption to economic growth in Japan, Netherlands and Switzerland; the opposite uni-directional causality running from economic growth to nuclear energy consumption in Canada and Sweden; and a bi-directional causality running between economic growth and nuclear energy consumption in France, Spain, the United Kingdom and the United States. In Spain, the United Kingdom and the USA, increases in nuclear energy consumption caused increases in economic growth implying that conservation measures taken that reduce nuclear energy consumption may negatively affect economic growth. In France, Japan, Netherlands and Switzerland increases in nuclear energy consumption caused decreases in economic growth, suggesting that energy conservation measure taken that reduce nuclear energy consumption may help to mitigate the adverse effects of nuclear energy consumption on economic growth. In Canada and Sweden energy conservation measures affecting nuclear energy consumption may not harm economic growth.

Further evidence on the relationship between economic freedom and economic growth

NARCIS (Netherlands)

De Haan, J; Siermann, CLJ

Often it is maintained that economic freedom may further high levels of economic growth. Using various measures of economic freedom constructed by Scully and Slottje, the robustness of this relationship is examined. Both direct and indirect effects of lack of liberties are analysed. Our main

IV Estimation of a Panel Threshold Model of Tourism Specialization and Economic Development

NARCIS (Netherlands)

C-L. Chang (Chia-Lin); T. Khamkaew (Tanchanok); M.J. McAleer (Michael)

2010-01-01

textabstractThe significant impact of international tourism in stimulating economic growth is especially important from a policy perspective. For this reason, the relationship between international tourism and economic growth would seem to be an interesting and topical empirical issue. The purpose

Linking Ethics and Economic Growth

DEFF Research Database (Denmark)

Foss, Nicolai Juul

2012-01-01

Hunt (2012) builds on his work concerning ethics and resource-advantage theory to link personal ethical standards, societal norms, and economic growth but offers few details concerning the precise mechanisms that link ethics and growth. This comment suggests a number of such mechanisms – for exam...... – for example, the influence of prevailing ethical norms on the aggregate elasticity of substitution and, therefore, total factor productivity and growth....

Money Supply, Interest Rate, and Economic Growth in Cameroon: A ...

African Journals Online (AJOL)

Money Supply, Interest Rate, and Economic Growth in Cameroon: A Time Series ... the impacts of money and interest rate on economic growth and development. ... Money Supply, Interest Rates, Economic growth, Co-integration and Inflation.

Economic growth in a politically fragmented world

Czech Academy of Sciences Publication Activity Database

Jeong, Byeongju

2014-01-01

Roč. 42, č. 2 (2014), s. 402-416 ISSN 0147-5967 Institutional support: RVO:67985998 Keywords : economic integration * economic growth * intergenerational bargain Subject RIV: AH - Economics Impact factor: 1.170, year: 2014

Macro-Financial Linkages in Egypt; A Panel Analysis of Economic Shocks and Loan Portfolio Quality

OpenAIRE

Inessa Love; Rima Turk-Ariss

2013-01-01

This paper investigates macro-financial linkages in Egypt using two complementary methods, assessing the interaction between different macroeconomic aggregates and loan portfolio quality in a multivariate framework as well as through a panel vector autoregressive method that controls for bank-level characteristics. Using a panel of banks over 1993-2010, the authors find that a positive shock to capital inflows and growth in gross domestic product improves banks’ loan portfolio quality, and ...

Institutions, Entrepreneurship, and Economic Growth

DEFF Research Database (Denmark)

Bjørnskov, Christian; Foss, Nicolai Juul

2016-01-01

sample limitations, omitted variable biases, causality issues, and response heterogeneity. We argue that theories in management research, such as the resource-based view, transaction cost economics, and strategic entrepreneurship theory, can fill some of the conceptual and theoretical gaps.......We review the literature that links institutions, entrepreneurship, and economic growth outcomes, focusing in particular on empirical research. Most of the literature has an economics orientation, but we also review relevant literature from other social sciences, including management research...

Models of the Economic Growth and their Relevance

Directory of Open Access Journals (Sweden)

Nicolae MOROIANU

2012-06-01

Full Text Available Until few years ago, the economic growth was something perfect normal, part of an era marked by the transformation speed. Normality itself has been transformed and we currently are influenced by other rules, unknown yet, which should answer the question: “How do we return to the economic growth?” The economic growth and the models aiming to solve this problem concern the economic history even since its beginnings. In this paper we would like to find out what is the relevance that the well-known macroeconomic models still have and which might be their applicability level in a framework created by a black swan event type.

Value function in economic growth model

Science.gov (United States)

Bagno, Alexander; Tarasyev, Alexandr A.; Tarasyev, Alexander M.

2017-11-01

Properties of the value function are examined in an infinite horizon optimal control problem with an unlimited integrand index appearing in the quality functional with a discount factor. Optimal control problems of such type describe solutions in models of economic growth. Necessary and sufficient conditions are derived to ensure that the value function satisfies the infinitesimal stability properties. It is proved that value function coincides with the minimax solution of the Hamilton-Jacobi equation. Description of the growth asymptotic behavior for the value function is provided for the logarithmic, power and exponential quality functionals and an example is given to illustrate construction of the value function in economic growth models.

Economic growth in a politically fragmented world

Czech Academy of Sciences Publication Activity Database

Jeong, Byeongju

2014-01-01

Roč. 42, č. 2 (2014), s. 402-416 ISSN 0147-5967 Institutional support: PRVOUK-P23 Keywords : economic integration * economic growth * intergenerational bargain Subject RIV: AH - Economics Impact factor: 1.170, year: 2014

Size of government and economic growth: A nonlinear analysis

Directory of Open Access Journals (Sweden)

Herath Shanaka

2012-01-01

Full Text Available The new growth theory establishes, among other things, that government expenditure can manipulate the economic growth of a country. This study attempts to explain whether government expenditure increases or decreases economic growth in the context of Sri Lanka. Results obtained employing a productive output series and applying an analytical framework based on second degree polynomial regression are generally consistent with previous findings: government expenditure and economic growth are positively correlated; excessive government expenditure is negatively correlated with economic growth; and investment promotes growth. In a separate section, the article examines Armey’s idea of a quadratic curve that explains the level of government expenditure in an economy and the corresponding level of economic growth [Armey, D. (1995. The Freedom Revolution. Washington, D.C.: Regnery Publishing Co.]. The findings confirm the possibility of constructing the Armey curve for Sri Lanka, and it estimates the optimal level of government expenditure to be approximately 27%. This article adds to the literature indicating that the Armey curve is a reality not only for developed economies, but also for developing economies.

Financial development and economic growth nexus in Russia

Directory of Open Access Journals (Sweden)

Shigeki Ono

2017-09-01

Full Text Available This paper examines the finance-growth nexus in Russia with the vector autoregression model, taking oil prices and foreign exchange rates into account. The analyzed period is from 1999 through 2008 (Subperiod 1 and from 2009 through 2014 (Subperiod 2. The results for Subperiod 1 suggest that there is causality from economic growth to money supply and bank lending, which implies demand-following responses. The results for Subperiod 2 show that economic growth Granger causes bank lending while there is no causality from money supply to economic growth, which could be related to the dramatic decrease in the amount of intervention in foreign exchange markets.

Directed Technical Change and Economic Growth Effects of Environmental Policy

DEFF Research Database (Denmark)

Kruse-Andersen, Peter Kjær

2016-01-01

A Schumpeterian growth model is developed to investigate how environmental policy affects economic growth when environmental policy also affects the direction of technical change. In contrast to previous models, production and pollution abatement technologies are embodied in separate intermediate...... unambiguously directs research efforts toward pollution abatement technologies and away from production technologies. This directed technical change reduces economic growth and pollution emission growth. Simulation results indicate that even large environmental policy reforms have small economic growth effects....... However, these economic growth effects have relatively large welfare effects which suggest that static models and exogenous growth models leave out an important welfare effect of environmental policy....

POVERTY, GROWTH AND INEQUALITY IN DEVELOPING COUNTRIES

Directory of Open Access Journals (Sweden)

Guiga Housseima

2012-01-01

Full Text Available The purpose of this paper is to assess the position of some developing countries in relation to different theories about the relationship between poverty, growth and inequality. We conducted an econometric analysis through a study using panel data from 52 developing countries over the period 1990-2005, to determine the main sources of poverty reduction and show the interdependence between poverty, inequality and growth by using a system of simultaneous equations. This method is rarely applied econometric panel data and especially in the case studies on poverty. Our results indicate that the state investment in social sectors such as education and health and improving the living conditions of the rural population can promote economic growth and reducing inequality. Therefore, the Kuznets hypothesis is based on a relationship between economic growths to income inequality is most appropriate.

Role of vaccination in economic growth.

Science.gov (United States)

Quilici, Sibilia; Smith, Richard; Signorelli, Carlo

2015-01-01

The health of a population is important from a public health and economic perspective as healthy individuals contribute to economic growth. Vaccination has the potential to contribute substantially to improving population health and thereby economic growth. Childhood vaccination programmes in Europe can offer protection against 15 important infectious diseases, thus preventing child fatalities and any serious temporary and permanent sequelae that can occur. Healthy children are more able to participate in education, thus preparing them to become healthy and productive adults. Vaccination programmes can also prevent infectious diseases in adolescents, thus allowing them to continue their development towards a healthy adulthood. Protecting adults against infectious diseases ensures that they can fully contribute to productivity and economic development by avoiding sick leave and lower productivity. Vaccination in older adults will contribute to the promotion of healthy ageing, enabling them to assist their familiy with, for instance, childcare, and also help them avoid functional decline and the related impacts on health and welfare expenditure. Effective vaccination programmes for all ages in Europe will thus contribute to the European Union's 2020 health and economic strategies. Indeed, beyond their impact on healthcare resources and productivity, reductions in mortality and morbidity also contribute to increased consumption and gross domestic product. Therefore, assessment of the value of vaccines and vaccination needs to consider not just the direct impact on health and healthcare but also the wider impact on economic growth, which requires a macroeconomic analysis of vaccination programmes.

A PANEL COINTEGRATION ANALYSIS: AN APPLICATION TO INTERNATIONAL TOURISM DEMAND OF THAILAND

Directory of Open Access Journals (Sweden)

CHUKIAT CHAIBOONSRI

2010-01-01

Full Text Available This paper sought to find the long-run relationships between international tourist arrivals in Thailand and economic variables such as GDP, transportation cost and exchange rates during period of 1986 to 2007. Also this paper used five standard panel unit root tests such as LLC (2002 panel unit root test, Breitung (2000 panel unit root test, IPS (2003 panel unit root test, Maddala and Wu (1999 and Choi (2001 panel unit root test and Handri (1999 panel unit root test. Moreover, the panel cointegration test based on Pedroni residual cointegration tests, Kao residual cointegration tests and Johansen fisher panel cointegration test were used to test in panel among the variables. The OLS estimator, DOLS estimator and FMOLS estimator were used to find the long-run relationship of the international tourism demand model for Thailand.The long-run results indicated that growth in income (GDP of Thai’s Asia major tourist source markets (Malaysia, Japan, Korea, China, Singapore and Taiwan have a positive impact on international tourists arrival to Thailand. In addition, the transportation cost of these countries has negative impact on the number of international tourist arrivals to Thailand. Finally Thailand’s currency has positive impact on the number of international tourist arrivals to Thailand. Most of findings from this study were consistent with economic theory and the implications of the model can be use for policy making.

Electricity consumption and economic growth in seven South American countries

International Nuclear Information System (INIS)

Yoo, Seung-Hoon; Kwak, So-Yoon

2010-01-01

This paper attempts to investigate the causal relationship between electricity consumption and economic growth among seven South American countries, namely Argentina, Brazil, Chile, Columbia, Ecuador, Peru, and Venezuela using widely accepted time-series techniques for the period 1975-2006. The results indicate that the causal nexus between electricity consumption and economic growth varies across countries. There is a unidirectional, short-run causality from electricity consumption to real GDP for Argentina, Brazil, Chile, Columbia, and Ecuador. This means that an increase in electricity consumption directly affects economic growth in those countries. In Venezuela, there is a bidirectional causality between electricity consumption and economic growth. This implies that an increase in electricity consumption directly affects economic growth and that economic growth also stimulates further electricity consumption in that country. However, no causal relationships exist in Peru. The documented evidence from seven South American countries can provide useful information for each government with regard to energy and growth policy.

Impacts of Seaport Investment on the Economic Growth

Directory of Open Access Journals (Sweden)

Tahar Ammar Jouili

2016-08-01

Full Text Available The aim of this paper is to estimate the impact of seaports investment on the economic growth. Seaports are seen by many governments as an important factor in the strengthening of the economies. During the last two decades, the Tunisian succeeding governments have been allocating a great amount of money to develop seaport infrastructures. However, the Tunisian economy witnessed fluctuations in the economic growth rates and decrease in the rate of employment during the same period of time. This study used an econometric model by employing the Cobb-Douglas production function. The sample was composed of Tunisia's economic sectors (manufacturing, services and agriculture over the period 1983-2011. The results of the study show that the public investment in seaport infrastructures has apositive influence on Tunisian economic growth. The study also revealed that the biggest beneficiary from the seaport investment infrastructure is the service sector.This paper aims to estimate the impact of seaports investment on the economic growth. The seaports are seen by many governments as an important factor in the strengthening of the economies. During the last two decades, the Tunisian succeeding governments were allocating a great amount of money to develop seaports' infrastructures. However, the Tunisian economy witnessed fluctuating in the economic growth rates and decreased in the rate of employment during the same period of time. This study used an econometric model by employing the Cobb-Douglas production function. The sample composed of Tunisia's economic sectors (manufacturing, services and agriculture over the period 1983-2011. The results of the study show that the public investment in seaports' infrastructures has a positive influence on Tunisian economic growth. The study also revealed that the biggest beneficiary from the seaports investment infrastructure is the services sector.

The South African tax mix and economic growth

Directory of Open Access Journals (Sweden)

AH de Wet

2014-10-01

Full Text Available The research reported in this paper suggests that government fiscal policy can influence economic growth through alterations in the tax mix and the overall size of government spending.   The authors estimate the impact on economic growth of changes in fiscal policy via government expenditure, direct taxation and indirect taxation.  The results show that economic growth is negatively affected by increases in the size of government, as reflected in its expenditures and direct tax revenues, although significant indirect tax effects are not found.

Financial Management and Economic Growth: The European Countries Experience

Directory of Open Access Journals (Sweden)

Nuno Carlos LEITÃO

2012-12-01

Full Text Available The purpose of this research is to investigate the impact of financial development on economic growth applied to European Countries. The initial GDP per capita is negatively correlated with growth of real GDP per capita. Our study shows that there is convergence within European Countries for the period 1990-2009. This paper confirms relevant theoretical hypothesis as international trade and saving encourage the economic growth. The inflation has a negative impact on economic growth as previous studies.

The Relationship Among Poverty, Economic Growth, and Inequality Revisited

OpenAIRE

Lonnie K. Stevans; David N. Sessions

2008-01-01

It has been shown in prior research that increased economic growth reduces poverty. Authors have also found that the effect of growth in Gross Domestic Product (GDP) on poverty growth has either diminished or remained unchanged over time, and economic expansion in the 1980s in the United States had no affect on poverty. Using a formal error-correction model, we find that increases in economic growth are significantly related to reductions in the poverty rate for all families. Specifically, GD...

Studying the Factors of Economic Growth in Countries of Central and Eastern Europe

Directory of Open Access Journals (Sweden)

Cherkas Nataliia I.

2018-03-01

Full Text Available The aim of the article is to study the impact of macroeconomic, technological and institutional indicators on economic growth of countries of Central and Eastern Europe (CEE using a panel data model. A sample of 12 CEE countries for the period 2006-2015 is analyzed. The following methods are used: 1 ordinary least squares (OLS, 2 fixed effects model (FE; 3 random effects model (RE. As a dependent variable there selected GDP per capita based on purchasing power parity, as an independent one — the exchange rate, export of high- and low-tech products, import of high-tech products, innovations. There used additional control variables: foreign direct investment, government efficiency, human capital, the Gini index, and public debt. The results of the study show that the devaluation of the monetary unit adversely affects the economic growth. Asymmetric results of the impact of high-technology and low-technology exports on GDP are obtained. The development of innovation and the improvement of the quality of human capital demonstrate a positive significant impact in terms of all specifications. The obtained results confirm that European integration supports non-price competition of CEE countries in the world market of high-tech products through participation in production networks of the EU-15.

Macroeconomic Determinants of Economic Growth: A Review of International Literature

Directory of Open Access Journals (Sweden)

Chirwa Themba G.

2016-12-01

Full Text Available The paper conducts a qualitative narrative appraisal of the existing empirical literature on the key macroeconomic determinants of economic growth in developing and developed countries. Much as other empirical studies have investigated the determinants of economic growth using various econometric methods, the majority of these studies have not distinguished what drives or hinders economic growth in developing or developed countries. The study finds that the determinants of economic growth are different when this distinction is used. It reveals that in developing countries the key macroeconomic determinants of economic growth include foreign aid, foreign direct investment, fiscal policy, investment, trade, human capital development, demographics, monetary policy, natural resources, reforms and geographic, regional, political and financial factors. In developed countries, the study reveals that the key macroeconomic determinants that are associated with economic growth include physical capital, fiscal policy, human capital, trade, demographics, monetary policy and financial and technological factors.

Political Instability and Economic Growth

OpenAIRE

Alberto Alesina; Sule Ozler; Nouriel Roubini; Phillip Swagel

1992-01-01

This paper investigates the relationship between political instability and per capita GDP growth in a sample of 113 countries for the period 1950-1982. We define ?political instability? as the propensity of a government collapse, and we estimate a model in which political instability and economic growth are jointly determined. The main result of this paper is that in countries and time periods with a high propensity of government collapse, growth is significantly lower than otherwise. This ef...

Economic Growth, Climate Change, and Obesity.

Science.gov (United States)

Minos, Dimitrios; Butzlaff, Iris; Demmler, Kathrin Maria; Rischke, Ramona

2016-12-01

Human and planetary health as well as economic growth are firmly interlinked and subject to complex interaction effects. In this paper, we provide an overview of interlinkages between economic growth, climate change, and obesity focusing on recent advances in the literature. In addition to empirical findings, we discuss different theoretical frameworks used to conceptualize these complex links and highlight policy options and challenges. We conclude that policies addressing both climate change and obesity simultaneously are particularly promising and often suitable for ensuring sustainable development.

Business regulation and economic growth in the Western Balkan countries

Directory of Open Access Journals (Sweden)

Engjell PERE

2013-06-01

Full Text Available Actually economic policies in many countries aimed to stimulate their economic growth, particularly after negative impact of the global economic crisis. In this regards, fiscal regulation are an important aspect of those policies, that can promote or obstacle the economic growth in general. In this point of view this paper aims to analyze the system of administration rules in different Western Balkans Countries, (which includes Albania, Bosnia & Herzegovina, Croatia, Kosovo, Macedonia (FYROM, Montenegro and Serbia. Moreover, a special attention is given investigation of the regulation and administrative facilitation aspects of doing business in the above-mentioned countries, whether this system stimulates, or not, the development of private business and economic growth.The paper is divided into three main sections. The first part provides a retrospective of economic growth in the Western Balkan countries and the dependence of this growth on global economic development. The second part proceeds with the investigations of the impact of administrative regulation on economic growth. The third part, based on an econometric model, will analyze the correlation between economic growth and elaborated indicators which present the level of business administrative regulation system. Furthermore, this last section discusses the results and concludes. In this analysis, the paper is based substantially on the data base of "Doing Business 2013" (World Bank.

The Impact of Regional Disparities on Economic Growth

Directory of Open Access Journals (Sweden)

Henryk Gurgul

2011-01-01

Full Text Available The authors investigated how economic growth affects the disparity in the distribution of regional income in Poland and vice versa. The research was based on annual data covering the period 2000-2009. In general, the research was divided into two main parts. First, the authors examined the evolution of the level of spatial inequalities in income in Poland over the last decade using the concepts of sigma and beta convergence. Next the nature of causal dependences was investigated between this inequality and economic growth. It was found that Polish regions did not converge with respect to the distribution of income as total GDP grew. The second part of the research provided evidence to claim that this inequality caused growth. Moreover, the evidence was also found that growth affected regional inequality. Finally, the authors noticed that the effects of both these factors were positive. The results suggest that as a consequence of rapid economic growth, some regions in Poland seized new opportunities, while less developed regions were unable to keep up with the challenging requirements of a decade of fast economic growth. (original abstract

Poverty and Economic Growth in Swaziland: An Empirical Investigation

Directory of Open Access Journals (Sweden)

Angelique G. Nindi

2015-03-01

Full Text Available This paper examines the causal relationship between poverty reduction and economic growth in Swaziland during the period 1980–2011. Unlike some of the previous studies, the current study uses the newly developed ARDL-bounds testing approach to co-integration, and the ECM-based Granger causality method to examine this linkage. The study also incorporates financial development as a third variable affecting both poverty reduction and economic growth – thereby leading to a trivariate model. The results of this study show that economic growth does not Granger cause poverty reduction in Swaziland – either in the short run or in the long run. Instead, the study finds a causal flow from poverty reduction to economic growth in the short run. These findings, however, are not surprising, given the high level of income inequality in Swaziland. Studies have shown that when the level of income inequality is too high, economic growth alone may not necessarily lead to poverty reduction.

Shocks in economic growth=shocking effects for food security?

NARCIS (Netherlands)

Kavallari, A.; Fellmann, T.; Hubertus Gay, H.

2014-01-01

The recent economic and financial turmoil raises the question on how global economic growth affects agricultural commodity markets and, hence, food security. To address this question, this paper assesses the potential impacts of faster economic growth in developed and emerging economies on the one

Local Decentralisation and Economic Growth in Nigeria

Directory of Open Access Journals (Sweden)

Hammed Adetola Adefeso

2014-06-01

Full Text Available The current global drive towards devolution of financial resources and responsibilities has been increasingly justified on the basis that greater transfers of these financial resources and responsibilities to sub-central governments are theoretically expected to deliver greater economic efficiency in the provision of public goods and services and hence greater economic growth. There is a mixed result on these theoretical expectations across earlier empirical literatures. Using the instrumental variables (IV technique of analysis with the recent data from Nigeria for the period 1970-2013, this study found no robust significant effect of the decentralisation of spending or revenue on growth of real GDP per capital in Nigeria. The implication of this to the policy makers is that when it comes to the determinants of improved economic activities, decentralisation either fiscal expenditure or revenue side would not be instrumental to economic growth possibly because of existence of endemic corruption among politicians in Nigeria.

Crisis in the habitat of the economic growth monster

DEFF Research Database (Denmark)

Urhammer, Emil

2014-01-01

This article is inspired by empirical philosophy and provides an analysis of economic growth as a monster that circulates within collectives. Using this approach, I illustrate how economic growth has participated in shaping institutions and language, thus having necessitated its own circulation...... to such an extent that it has become the most prioritised economic policy objective, whereas urgent issues regarding living conditions on Earth are either ignored or treated as secondary priorities. Further, I argue that noble attempts to contest economic growth contribute to the circulation of the monster...

Financial Intermediaries and Economic Growth: The Nigerian Evidence

Directory of Open Access Journals (Sweden)

Oba Efayena

2014-06-01

Full Text Available This study seeks to examine the role of financial intermediaries and to find out whether financial intermediaries impact on economic growth in Nigeria. The study adopts the Harrod-Domar growth model which states that economic growth will proceed at the rate which society can mobilize domestic savings resources coupled with the productivity of the investment. The study employed the use of secondary data for the period 1981 to 2011 which were sourced from the CBN statistical bulletin. Nigerian banks being the dominant financial intermediaries, loans credits and advances from banks were used as proxy for the independent variable. Gross domestic product (GDP was used as proxy for economic growth. Using the technique of correlation analysis in determining the association between loan credits and advances, and the GDP, the study reveals a relatively high positive correlation between financial intermediaries and economic growth in the Nigerian economy. The study recommends that Nigerian banks should lend higher proportion of their loanable funds to small and medium enterprises (SMEs and should invest in information technology and human capital.

FISCAL POLICY'S INFLUENCE ON ECONOMIC GROWTH IN THE EUROPEAN UNION

OpenAIRE

MIHAIU Diana Marieta; OPREANA Alin

2012-01-01

In this paper we study the impact of the fiscal policy on the economic growth for European Union, for the period 2000-2009. This subject represents a very debated problem in the economic literature. Our findings shows that, from the analysis of correlation between economic growth rate and total rate of taxation, there is generally an inverse relationship, meaning that an increase in the tax rate adversely affects economic growth. Continuing the analysis of the correlation between economic gro...

Exploring economic structure and drivers of economic growth in Botswana

Directory of Open Access Journals (Sweden)

Patricia Lindelwa Makoni

2015-12-01

Full Text Available This article set out to analyse the economic structure and main economic drivers in Botswana. Botswana, a country in sub-Saharan Africa, is a relatively small economy, hugely dependent on its diamond mineral wealth. Concerns have arisen in recent years that the diamond deposits will soon be depleted and the country therefore needs to embark on a diversification programme to broaden its economic base. In order to understand the Botswana economy, its economic structure and current domestic sectorial performance were evaluated, as well as its trends in imports and exports. An analysis of the data shows that, regardless of the awareness of the sensitivity to external shocks of commodity prices, as well as the obvious future depletion of diamond reserves, the Botswana economy continues to rely on diamonds, at the expense of attracting international capital flows to enhance and maintain sustainable economic growth, through investments in agriculture, manufacturing and tourism. It is therefore recommended that the Government of Botswana becomes proactive and implements recommended policies to diversify its economy, so that it can sustain or improve its economic growth by becoming a prime destination of international capital and domestic private sector investment, thereby increasing employment and trade opportunities.

Is faster economic growth compatible with reductions in carbon emissions? The role of diminished population growth

Science.gov (United States)

Casey, Gregory; Galor, Oded

2017-01-01

We provide evidence that lower fertility can simultaneously increase income per capita and lower carbon emissions, eliminating a trade-off central to most policies aimed at slowing global climate change. We estimate the effect of lower fertility on carbon emissions, accounting for the fact that changes in fertility patterns affect carbon emissions through three channels: total population, the age structure of the population, and economic output. Our analysis proceeds in two steps. First, we estimate the elasticity of carbon emissions with respect to population and income per capita in an unbalanced yearly panel of cross-country data from 1950-2010. We demonstrate that the elasticity with respect to population is nearly seven times larger than the elasticity with respect to income per capita and that this difference is statistically significant. Thus, the regression results imply that 1% slower population growth could be accompanied by an increase in income per capita of nearly 7% while still lowering carbon emissions. In the second part of our analysis, we use a recently constructed economic-demographic model of Nigeria to estimate the effect of lower fertility on carbon emissions, accounting for the impacts of fertility on population growth, population age structure, and income per capita. We find that by 2100 C.E. moving from the medium to the low variant of the UN fertility projection leads to 35% lower yearly emissions and 15% higher income per capita. These results suggest that population policies could be part of the approach to combating global climate change.

Review of capital investment in economic growth cycle

Science.gov (United States)

Shaffie, Siti Salihah; Jaaman, Saiful Hafizah; Mohamad, Daud

2016-11-01

The study of linkages of macroeconomics factors is prominent in order to understand how the economic cycle affects one another. These factors include interest rate, growth rate, saving and capital investment which are mutually correlated to stabilize the GDP. Part of this study, it will look upon the impact of investment which emphasize the efficiency of capital investment to the economic growth. Capital investment is one investment appraisal that gives impact to the economic growth. It is a long term investment and involve with large amount of capital to incorporate the development of private and public capital investment.

Impact of energy technology patents in China: Evidence from a panel cointegration and error correction model

International Nuclear Information System (INIS)

Li, Ke; Lin, Boqiang

2016-01-01

Enhancing energy technology innovation performance, which is widely measured by energy technology patents through energy technology research and development (R&D) activities, is a fundamental way to implement energy conservation and emission abatement. This study analyzes the effects of R&D investment activities, economic growth, and energy price on energy technology patents in 30 provinces of China over the period 1999–2013. Several unit root tests indicate that all the above variables are generated by panel unit root processes, and a panel cointegration model is confirmed among the variables. In order to ensure the consistency of the estimators, the Fully-Modified OLS (FMOLS) method is adopted, and the results indicate that R&D investment activities and economic growth have positive effects on energy technology patents while energy price has a negative effect. However, the panel error correction models indicate that the cointegration relationship helps to promote economic growth, but it reduces R&D investment and energy price in the short term. Therefore, market-oriented measures including financial support and technical transformation policies for the development of low-carbon energy technologies, an effective energy price mechanism, especially the targeted fossil-fuel subsidies and their die away mode are vital in promoting China's energy technology innovation. - Highlights: • Energy technology patents in China are analyzed. • Relationship between energy patents and funds for R&D activities are analyzed. • China's energy price system hinders energy technology innovation. • Some important implications for China's energy technology policy are discussed. • A panel cointegration model with FMOLS estimator is used.

BANKING SECTOR DEVELOPMENT AND ECONOMIC GROWTH INPALESTINE; 1995-2014

Directory of Open Access Journals (Sweden)

Gaber H. Abugamea

2016-07-01

Full Text Available This study uses both OLS regression estimation and Granger Causality test toinvestigate the relationship between the banking sector development andeconomic growth in Palestine over the period 1995-2014.OLS results show asignificant impact of banking size with a negative sign, insignificant impact ofcredit lending with a marginal one for lag credit andinsignificant impact ofefficiency on economic growth, respectively.Granger Causality testresultsshowone way causality runningfrom banking size to(GDPeconomic growthandfrom banking efficiency to(GDP per capitaeconomic growth one. Overall resultsreveals a weak nexus between banking sector development and economic growth.In specific, it recommends more improving in banking lending policy to beeffective in promoting economic growth.

Does Economic Growth Reduce Childhood Undernutrition in Ethiopia?

Science.gov (United States)

Biadgilign, Sibhatu; Shumetie, Arega; Yesigat, Habtamu

2016-01-01

Policy discussions and debates in the last couple of decades emphasized efficiency of development policies for translating economic growth to development. One of the key aspects in this regard in the developing world is achieving improved nutrition through economic development. Nonetheless, there is a dearth of literature that empirically verifies the association between economic growth and reduction of childhood undernutrition in low- and middle-income countries. Thus, the aim of the study is to assess the interplay between economic growth and reduction of childhood undernutrition in Ethiopia. The study used pooled data of three rounds (2000, 2005 and 2010) from the Demographic and Health Surveys (DHS) of Ethiopia. A multilevel mixed logistic regression model with robust standard errors was utilized in order to account for the hierarchical nature of the data. The dependent variables were stunting, underweight, and wasting in children in the household. The main independent variable was real per capita income (PCI) that was adjusted for purchasing power parity. This information was obtained from World Bank. A total of 32,610 children were included in the pooled analysis. Overall, 11,296 (46.7%) [46.0%-47.3%], 8,197(33.8%) [33.2%-34.4%] and 3,175(13.1%) [12.7%-13.5%] were stunted, underweight, and wasted, respectively. We found a strong correlation between prevalence of early childhood undernutrition outcomes and real per capita income (PCI). The proportions of stunting (r = -0.1207, peconomic growth substantially reduced stunting [β = -0.0016, SE = 0.00013, pEconomic growth reduces child undernutrition in Ethiopia. This verifies the fact that the economic growth of the country accompanied with socio-economic development and improvement of the livelihood of the poor. Direct nutrition specific and nutrition sensitive interventions could also be recommended in order to have an impact on the massive reduction of childhood undernutrition in the country.

The causal dynamics between coal consumption and growth: Evidence from emerging market economies

International Nuclear Information System (INIS)

Apergis, Nicholas; Payne, James E.

2010-01-01

This study examines the relationship between coal consumption and economic growth for 15 emerging market economies within a multivariate panel framework over the period 1980-2006. The heterogeneous panel cointegration results indicate there is a long-run equilibrium relationship between real GDP, coal consumption, real gross fixed capital formation, and the labor force. While in the long-run both real gross fixed capital formation and the labor force have a significant positive impact on real GDP, coal consumption has a significant negative impact. The panel causality tests show bidirectional causality between coal consumption and economic growth in both the short- and long-run. (author)

Panel Data Evidence on the Role of Education in the Growth-Volatility Relationship

OpenAIRE

Abbi M Kedir; Nor Yasmin Mhd Bani

2012-01-01

The investigation of the growth-volatility link is an important one in empirical macroeconomics. There is no empirical evidence supporting the predictions of recent theoretical models that incorporate and explicitly recognize the role of human capital in this link. Using a panel data, we show empirically how the detrimental effect of output volatility on growth is diluted by education. We provide robustness checks and policy implications of our finding.

Investigating Causality Between Agricultural and Economic Growth in Iran

Directory of Open Access Journals (Sweden)

A. Falsafian

2010-10-01

Full Text Available Although rate of economic growth is not the only way to measure economic development, it is relatively more important than the other indices. Agriculture sector plays the main role on economic growth and sustainable development. In addition, it has significant impact on most social, political and economic issues by producing strategic food products for ever-increasing population. Therefore, the present study investigated causal relationship between agricultural and economic growth in Iran. To this end, the Granjer’s causality test was used after employing the Augmented Dicky-Fuller test to see if the variables under consideration are stationary. The result showed that there is a long learn feedback relationship between these variables and agricultural developments.

An Accounting Method for Economic Growth

OpenAIRE

Hongchun Zhao

2012-01-01

As Chari et al. (2007) indicate, many growth theories explaining frictions in real economies are equivalent to a competitive economy, with some exogenous taxes. Using this idea, I developed an accounting method for identifying fundamental causes of economic growth. A two-sector neoclassical growth model with taxes is used as a prototype economy, and its equilibrium conditions define wedges. These wedges endogenously determine the long run growth rate, which is exogenous and not correlated wit...

Stock Market and Sustainable Economic Growth in Nigeria

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Erasmus L Owusu

2016-11-01

Full Text Available This paper examines the relationship between stock market evolution and sustainable economic growth in Nigeria. The study employs Auto-Regressive Distributed Lag (ARDL-bounds testing approach and a combined stock market indicators index to examine the relationship. The paper finds that, in the long run, stock markets have no positive and at best mixed effect on economic growth in Nigeria. This finding supports the numerous past studies, which have reported negative/mixed or inconclusive results on the effects of stock markets on economic growth. The paper, therefore, concludes that, there is the need for increasing financial deepening and the removal of bottlenecks in the financial sectors of the economy by providing further public and institutional education on the value of stock markets for economic development.

HOW TO SUSTAIN ECONOMIC PERFORMANCE? ECONOMIC GROWTH AND ITS IMPACT FACTORS

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OANA SIMONA HUDEA (CARAMAN

2012-05-01

Full Text Available This paper intends to render several important factors of impact on economic growth and to describe the particular types of relationships of the latter with each one of its influencing elements. In order to correctly determine such issue, we have resorted to three carefully selected models that have been estimated and compared so as to identify the most adequate and representative regression. For this purpose we have performed an analysis based on cross-section annual data for 105 countries spread all over the world. After having tested and rejected certain exogenous variables initially considered, such as imports or exports, we have finally retained the external debt and foreign direct investments as explanatory items of the dependent variable. The results revealed that both of them positively affect the gross domestic product of the analysed countries, this one being inelastic in relation to the exogenous variables considered. Even if the relationship between the economic growth and the external debt of a country is usually negative, as the money exit out of the country due to the debt service causes non-achieved potential investments, yet, there is an inflexion point up to which the external debt has a positive influence on economic growth by the increase of the investments funds acquired as result of the external credit contracting, this being the case reflected by our study. As for the relationship existing between foreign direct investments and GDP, the economic theory confirms that FDI and economic growth are directly correlated, the former contributing to technical progress, production increase and, finally, to the improvement of the living standard.

Outward foreign direct investments and home country's economic growth

Science.gov (United States)

Ciesielska, Dorota; Kołtuniak, Marcin

2017-09-01

The study examines the time stability of the causality direction and cross-correlations between the home country's economic growth and pace of growth of its outward foreign direct investment (OFDI) stocks within the complex system of the Polish national economy. The research has been performed in order to verify, using both the time and frequency domains time series analyses, if economic agents' long term decisions on outward foreign direct investments, leading to cross-border value chains and production fragmentation processes, are of adaptive or predictive character. Consequently, the aim was to check if the home country's economic growth leads the internationalization processes of domestic enterprises, which stays in line with Dunning's Investment Development Path (IDP) paradigm, or if these complex processes, thanks to entrepreneurs' ability to formulate relevant rational expectations, precede the home country's economic growth, which would be supported with the introduction of the policy on reinforcing the internationalization processes of domestic enterprises. The presence of the unidirectional economic growth-led internationalization, consistent with the IDP concept's base assumptions, has been ascertained by the results of the short term Granger causality tests. Nevertheless, the results of the wavelet analyses, supported with the results of the econometric block exogeneity long term causality Wald tests, have revealed that in the long term the OFDI stocks' growth permanently precedes the home country's economic growth, which stays in the unequivocal contrast with the IDP paradigm's premises, as well as with the indicated above short term Granger causality tests' outcomes and indicates that economic agents' choices are not strictly of adaptive but also of predictive character, which influences the current state of knowledge on economic complex systems' characteristics. Such a result is of a great importance in the light of the existence of the significant

Export Specialisation and Local Economic Growth

NARCIS (Netherlands)

Naude, Wim; Bosker, Maarten; Matthee, Marianne

This paper aims to provide empirical evidence on whether export specialization or diversification is better for local economic growth. Using export data from 354 magisterial districts of South Africa for 1996 and 2001 we estimate spatial growth regressions that include measures of the degree of

Reduced Deforestation and Economic Growth

OpenAIRE

Patrick Doupe

2014-01-01

The clearing of forests for agricultural land and other marketable purposes is a well-trodden path of economic development. With these private benefits from deforestation come external costs: emissions from deforestation currently account for 12 per cent of global carbon emissions. A widespread intervention in reducing emissions from deforestation will affect the paths of agricultural expansion and economic growth of lower income nations. To investigate these processes, this paper presents a ...

Global Integration, Non-Oil Export and Economic Growth in Nigeria

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Ozoemena Stanley Nwodo

2017-03-01

Full Text Available This study focuses on global integration, non-oil export and economic growth in Nigeria. The direct and interaction effect of the both openness variables and non-oil export on economic growth in Nigeria is investigated using quarterly data from 1986-2014. For analysis, it uses one measures of financial openness: de facto (total capital flow variables following Aizenman and Noy (2009.and a measure of trade openness adopted by Okoh (2004. The study applies the Autoregressive Distributed Lag Model (ARDL. The results show positive impact of non-oil export on economic growth in Nigeria both in the short run and in the long run, negative effect of trade and financial openness on economic growth however, the result recorded a negative effect of the interaction of trade openness and non-oil export on economic growth and a positive effect of the interaction of financial openness and non-oil export on economic growth. Thus, the study recommends among others that government should get the fundamentals right in the economy first that will boost non-oil sector before opening the economy for trade.

The dynamics of oil consumption and economic growth in Malaysia

International Nuclear Information System (INIS)

Park, Sun-Young; Yoo, Seung-Hoon

2014-01-01

This study attemps to investiagte the causal relationship between oil consumption and economic growth in Malaysia where oil consumption and real gross domestic product have been rapidly increased in recent years. To this end, the study employs annual data covering the period 1965–2011. Tests for unit roots, co-integration, and Granger-causality based on the error-correction models are presented. The overall results support the existence of bi-directional causality between oil consumption and economic growth in Malaysia. This means that an increase in oil consumption directly affect economic growth. Thus, in order not to make an adverse effect on economic growth, Malaysia should endeavor to overcome the constraints on oil consumption. Moreover, it appears that economic growth induces oil consumption. - Highlights: • We examine the causality between oil consumption and economic growth in Malaysia. • We employed the annual data covering the period 1965–2011. • We estimated error-correction models to test for the direction of causality. • We found that there is bi-directional causality between the two

Exploring the link between environmental pollution and economic growth in EU-28 countries: Is there an environmental Kuznets curve?

Science.gov (United States)

Armeanu, Daniel; Vintilă, Georgeta; Andrei, Jean Vasile; Gherghina, Ştefan Cristian; Drăgoi, Mihaela Cristina; Teodor, Cristian

2018-01-01

This study examines the Environmental Kuznets Curve hypothesis (EKC), considering the primary energy consumption among other country-specific variables, for a panel of the EU-28 countries during the period 1990-2014. By estimating pooled OLS regressions with Driscoll-Kraay standard errors in order to account for cross-sectional dependence, the results confirm the EKC hypothesis in the case of emissions of sulfur oxides and emissions of non-methane volatile organic compounds. In addition to pooled estimations, the output of fixed-effects regressions with Driscoll-Kraay standard errors support the EKC hypothesis for greenhouse gas emissions, greenhouse gas emissions intensity of energy consumption, emissions of nitrogen oxides, emissions of non-methane volatile organic compounds and emissions of ammonia. Additionally, the empirical findings from panel vector error correction model reveal a short-run unidirectional causality from GDP per capita growth to greenhouse gas emissions, as well as a bidirectional causal link between primary energy consumption and greenhouse gas emissions. Furthermore, since there occurred no causal link between economic growth and primary energy consumption, the neo-classical view was confirmed, namely the neutrality hypothesis.

Is inflation a growth killer? Evidence from sub-Saharan Africa ...

African Journals Online (AJOL)

This paper examines the impact of in ation on economic growth in Sub-Saharan Africa in order to provide an empirical evidence whether in ation hinders or boost economic activities in the region. The paper found that in ation exhibits a reducing-growth effect in both short-term and long-term periods using Panel ...

Is renewable energy effective in promoting growth?

International Nuclear Information System (INIS)

Marques, António Cardoso; Fuinhas, José Alberto

2012-01-01

This paper applies panel data techniques to analyze the role of the various energy sources in economic growth, for a set of 24 European countries (1990–2007), controlling for energy consumption and energy dependency. The results suggest that the negative effect of the use of renewables supplants the positive effect of creating income by exploiting a natural resource locally, and thus growth does not appear to improve with the change towards renewables. The high costs of promoting renewables are probably being placed excessively upon the economy, namely by increasing the costs of electricity tariffs, thus inducing a deceleration in economic activity. Fossil fuels lead to dissimilar effects on growth while natural gas does not appear to be relevant in explaining growth. Coal hampers the capacity for growth, whereas the use of oil stimulates that growth. This is in line with productive structures that are deeply grounded in fossil fuels, particularly oil. - Highlights: ► We empirically test the distinct effects of decomposing energy by source on growth. ► We focus on 24 European Countries (1990–1907) by applying a panel data approach. ► Fossil fuels lead to dissimilar effects on growth. Coal hampers and oil stimulates it. ► Economic growth does not appear to improve with the paradigm change to renewable. ► High costs of promotion of renewables are being placed excessively upon the economy.

Health expenditure and economic growth - a review of the literature and an analysis between the economic community for central African states (CEMAC) and selected African countries.

Science.gov (United States)

Piabuo, Serge Mandiefe; Tieguhong, Julius Chupezi

2017-12-01

African leaders accepted in the year 2001 through the Abuja Declaration to allocate 15% of their government expenditure on health but by 2013 only five (5) African countries achieved this target. In this paper, a comparative analysis on the impact of health expenditure between countries in the CEMAC sub-region and five other African countries that achieved the Abuja declaration is provided. Data for this study was extracted from the World Development Indicators (2016) database, panel ordinary least square (OLS), fully modified ordinary least square (FMOLS) and dynamic ordinary least square (DOLS) were used as econometric technic of analysis. Results showed that health expenditure has a positive and significant effect on economic growth in both samples. A unit change in health expenditure can potentially increase GDP per capita by 0.38 and 0.3 units for the five other African countries that achieve the Abuja target and for CEMAC countries respectively, a significant difference of 0.08 units among the two samples. In addition, a long-run relationship also exist between health expenditure and economic growth for both groups of countries. Thus African Economies are strongly advised to achieve the Abuja target especially when other socio-economic and political factors are efficient.

Transport Infrastructure and Economic Growth: Spatial Effects

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Artyom Gennadyevich Isaev

2015-09-01

Full Text Available The author specifies an empirical framework of neoclassical growth model in order to examine impact of transport infrastructure on economic growth in Russian regions during period of 2000-2013. Two different effects of infrastructure are considered. First, infrastructure is viewed as part of region’s own production function. Second, infrastructure generates spillover effect on adjacent regions’ economic performance which can be negative or positive. Results imply that road infrastructure has a positive influence on regional growth, but sign of railroad infrastructure coefficient depends on whether or not congestion effect is considered. Negative spillover effect is shown to exist in the case of road infrastructure. This apparently means that rapid road infrastructure development in some regions moves mobile factors of production away from adjacent regions retarding their economic development. The spillover effect of railroad infrastructure is significant and negative again only if congestion effect is considered. The results of estimation for the Far East and Baikal Regions separately demonstrate no significant effect of both types of infrastructure for economic performance and negative spillover effect of road infrastructure

Nation Building as a Determinent of Economic Growth

Science.gov (United States)

2010-05-18

Consortium for Political and Social Reserch (2007). Mankiw , N. Gregory, David Romer, and David N. Weil. “A Contribution to the Empirics of Economic Growth...Determinent of Economic Growth 5b. GRANT NUMBER 5c. PROGRAM ELEMENT NUMBER 6 . AUTHOR(S) 5d. PROJECT NUMBER Creasey. Ellyn Ann 5e. TASK NUMBER 51...J ss istance and econom ic aid impact the development process. The primary resu lts suggest a 1% increase in spending on nation building result s

HEALTH, EDUCATION AND ECONOMIC GROWTH IN MALAYSIA

OpenAIRE

Rahmah Ismaila and Doris Padmini Selvaratnamb

1999-01-01

Human capital is vital for the development of a country. Investment in human capital ranges from basic needs expenditure to education and health provision. Economic growth is often used to measure the progress and development of a country. Today other indicators are used to emphasize physical quality of life, for example, education, health and basic needs provision. Using a simultaneous equation model, this paper estimates the relationship between economic growth and human capital variables i...

Renewable energy, carbon emissions, and economic growth in 24 Asian countries: evidence from panel cointegration analysis.

Science.gov (United States)

Lu, Wen-Cheng

2017-11-01

This article aims to investigate the relationship among renewable energy consumption, carbon dioxide (CO 2 ) emissions, and GDP using panel data for 24 Asian countries between 1990 and 2012. Panel cross-sectional dependence tests and unit root test, which considers cross-sectional dependence across countries, are used to ensure that the empirical results are correct. Using the panel cointegration model, the vector error correction model, and the Granger causality test, this paper finds that a long-run equilibrium exists among renewable energy consumption, carbon emission, and GDP. CO 2 emissions have a positive effect on renewable energy consumption in the Philippines, Pakistan, China, Iraq, Yemen, and Saudi Arabia. A 1% increase in GDP will increase renewable energy by 0.64%. Renewable energy is significantly determined by GDP in India, Sri Lanka, the Philippines, Thailand, Turkey, Malaysia, Jordan, United Arab Emirates, Saudi Arabia, and Mongolia. A unidirectional causality runs from GDP to CO 2 emissions, and two bidirectional causal relationships were found between CO 2 emissions and renewable energy consumption and between renewable energy consumption and GDP. The findings can assist governments in curbing pollution from air pollutants, execute energy conservation policy, and reduce unnecessary wastage of energy.

Ekonomik Büyümenin Belirleyicileri ve 2008 Krizi: Orta Asya Ülkeleri ve Türkiye Ekonomisi İçin Panel Veri Analizi(The Determinats of Economic Growth and 2008 Crisis: Panel Data Analysis for Central Asia Countries and Turkey’s Economy

Directory of Open Access Journals (Sweden)

Mehmet MERCAN

2014-06-01

Full Text Available In this study the determinants of economic growth and the effects of 2008 global economic crisis on growth were analysed by using 1990-2012 periods’ annual data in the sample of Turkey and Central Asia Countries (Azerbaijan, Kazakhstan, Kyrgyzstan, Turkmenistan, Tajikistan, and Uzbekistan. The 2008 crisis started in the USA in mid-2008 in mortgage markets and also affected the financial markets and the reel sector and it spread all over European Countries (EU and the world from September 2008 and it caused a shrink in world economy by 2.3 % and distorted the macroeconomic balances of countries including in particular the economic growth. According to the empirical findings of the analysis the government expenditures, the export and the private consumption expenditure in order made the most contribution to the countries’ economic growth. Effect of the crisis on economic growth was negative and statistically significant.

Economic growth of the United States: perspective and prospective. [Monograph

Energy Technology Data Exchange (ETDEWEB)

Fabricant, S

1979-01-01

A post-World War II analysis of the potential for US economic expansion projects a continuation of the basic social and economic expectations and international relations and of the upward trend of labor input, labor productivity, and national output. How economic growth of the future will differ as a result of global changes in population and resources is examined in the context of other national objectives. The rapid increase in labor productivity during the postwar period was taken in the form of income rather than leisure. This led to a growth of goods and real per capita income as well as higher standards of living, education, and economic stability. The implications for future growth indicate the need to slow the growth of the national product in line with the rate of population growth. The improved welfare of the people should be the overall goal of which economic growth is one component. 23 tables. (DCK)

Electrification, economic growth and uranium power

International Nuclear Information System (INIS)

Starr, C.

1983-01-01

The worldwide growth of uranium power plant capacity is obviously dependent on both the growth of electrification and the competitive status of uranium power. In this paper the thesis is developed that expanded use of uranium power is essential to provide a substantial portion of the electricity necessary for world economic growth. Further, the case is made that the obstacles to this expansion arise not from the technology, but rather from the inadequacies of our industrial, political, and economic institutions to manage this new energy system effectively, nationally and internationally. Data are presented on the relation between electricity consumption and GNP; percentage of primary energy used for electricity; energy price ratio; relative generation costs of U, coal and oil-fired power plants; generating costs and capacity factors of conventional and uranium power plants. (U.K.)

Association between economic growth and injury mortality among seniors in Colombia.

Science.gov (United States)

Trujillo, Antonio J; Hyder, Adnan A; Ruiz, Fernando

2010-12-01

Injuries among seniors are recognised as an important public health problem not only in developed countries but also in middle-income countries. There is ample epidemiological literature that relates economic growth to the reduction of infectious and childhood diseases. Less evidence exists to document if economic growth alone is enough to reverse the increasing trends of injury mortality and morbidity among seniors in a middle-income country. To investigate the association between economic growth and injury deaths among older people in Colombia. Using data from Colombia, 1979-2006 (n=28), time-series models were used to ascertain if the variation over time in injury mortality among seniors is related to short-term oscillations in economic performance. Four empirical specifications usually used in the analysis of such data were implemented. Models were run by type of injury and gender. A negative but moderate effect of economic growth was found on injury deaths among older people. The reported elasticity was between -0.98 and -1.26. Men benefit from economic growth more than women. Economic growth seems to reduce traffic injuries, suicides and homicides. A positive association was also found between falls and growth in gross domestic product. The results indicate a non-homogeneous association between economic growth and injury deaths among seniors in Colombia. This association is usually stronger in a negative direction among children and younger adults. Although more research is needed to understand the causal relationship between economic growth and injury, the association found may suggest that economic growth may not be sufficient to reverse injury deaths among older people; therefore, additional health policies need to be in place to reduce mortality due to preventable injuries in seniors.

Re-investigating the electricity consumption and economic growth nexus in Portugal