Economics
Seyed Valiallah Mirhoseyni; Mohammd Reza Montazeri; Marzeya ShahVali
Abstract
Investigation of budget deficit and government debt relationship with economic growth is one of the important topics in macroeconomic literature; Hence, the present study examined the role of budget deficit and government debt on financing the economic growth in 40 developing countries between 2010-2019. ...
Read More
Investigation of budget deficit and government debt relationship with economic growth is one of the important topics in macroeconomic literature; Hence, the present study examined the role of budget deficit and government debt on financing the economic growth in 40 developing countries between 2010-2019. In this regard, the economic growth was defined as a function of financial development, budget deficit, government debt, government expenditure, human capital, inflation rate, trade freedom, and the interaction of budget deficit and government debt with financial development. To examine the relationships between variables, the panel data econometric model and the feasible generalized least squares method were used. The estimation results showed that in developing countries, financial development had a positive and budget deficit and government debt had a negative and significant effect on the economic growth. Also, the interaction effect of budget deficit and government debt with financial development on economic growth was negative and significant that showed budget deficit and government debt play a negative role in positive relationship between financial development and economic growth. In addition, government expenditure, human capital, and trade freedom had a positive and significant effect on economic growth, while the inflation rate effect on economic growth was not significant.
Economics
Seyed Valiallah Mirhoseyni; Ebrahim Bahraminia; Firozeh Nori
Abstract
This study aimed to investigate the relationship between life expectancy at birth and economic growth in developing countries. The Document and Library review was used to collect data. Then, the relevant information was extracted from the World Bank website. The necessary information was collected through ...
Read More
This study aimed to investigate the relationship between life expectancy at birth and economic growth in developing countries. The Document and Library review was used to collect data. Then, the relevant information was extracted from the World Bank website. The necessary information was collected through the World Bank website (2000-2020) to analyze the information and hypothesis test. After collecting the required information for the considered countries, the research hypotheses were examined using correlation and regression analysis and the panel data statistical method, and the data was prepared for analysis. Then, Eviews 12 is used to perform the final analysis. The results showed that there is a positive and direct relationship between Healthcare expenditures as one of the indicators of life expectancy at birth and economic growth in developing countries. It is also concluded that there is a negative and inverse relationship between Food Poverty as one of the sub-indicators of life expectancy at birth and economic growth in developing countries, while there was a negative and inverse relationship between the Death Rate as one of the sub-indicators of life expectancy at birth and economic growth in developing countries. In addition, there is a positive and direct relationship between Access to Educational Facilities as one of the sub-indicators of life expectancy at birth and economic growth in developing countries. Finally, there is a positive and direct relationship between Median Household Income as one of the indicators of life expectancy at birth and economic growth in developing countries.
Economics
Seyed Valiallah Mirhoseyni; Seyed Hosein Izadi; Leila Mohammad Ghader
Abstract
Human capital is supposed to be an important factor in innovation and economic development. However, the long-run influence of human capital on current innovation and economic development is still unclear, in particular in the MENA region. Therefore, the present study is to investigate the long-run influence ...
Read More
Human capital is supposed to be an important factor in innovation and economic development. However, the long-run influence of human capital on current innovation and economic development is still unclear, in particular in the MENA region. Therefore, the present study is to investigate the long-run influence of human capital on innovation and economic growth in MENA countries for the years 2010-2012. The data were collected using the library method from the World Bank database and were analyzed using statistical and econometric methods for panel data. The results obtained from this study showed that human capital had a positive, significant influence on innovation and economic growth in MENA countries. The same influence was observed for the population density in some age groups (more educated people) on the patents in MENA countries.The same influence was observed for the population density in some age groups (more educated people) on the patents in MENA countries.
Management
Shivneil Kumar Raj
Abstract
This research highlights the importance of the sugarcane industry in a developing country like Fiji. this study aims to find out the contributions, challenges and possible solutions of reviving the sugarcane industry with regards to the Saweni Area in Lautoka. Sugarcane has been one of the major industries ...
Read More
This research highlights the importance of the sugarcane industry in a developing country like Fiji. this study aims to find out the contributions, challenges and possible solutions of reviving the sugarcane industry with regards to the Saweni Area in Lautoka. Sugarcane has been one of the major industries contributing to Fiji's Gross Domestic Product. The Sugar Industry has undergone continuing and significant changes since its inception. The researcher employed a simple survey technique and collected data through the issuance of questionnaires for the Saweni Area in Lautoka. The findings suggest that sugarcane is still important and will continue to be important in the economic development of the Saweni Area in Fiji. Sugarcane is also one of the foreign exchange-earners and contributes significantly to Fiji's GDP and sustaining the livelihoods of many people. Subsidising the sugarcane prices, and creating tax-free farming zones can boost confidence and revive this industry on which thousands of Fijians are dependent upon as their source of income.
Claudia Nyarko Mensah; Hannah Vivian Osei; Lamini Dauda; Muhammad Salman
Volume 6, Issue 12 , December 2019, , Pages 862-890
Abstract
Foreign Direct Investment (FDI) has a long standing history of contributing to economic growth of nations. Nations invest and get invested, however, focus has always been on investing or been invested but the impact created as a result of the two on the economies have not yet been examined. Whether the ...
Read More
Foreign Direct Investment (FDI) has a long standing history of contributing to economic growth of nations. Nations invest and get invested, however, focus has always been on investing or been invested but the impact created as a result of the two on the economies have not yet been examined. Whether the impact of the difference creates ditch or bump get investigated in this research work, employing an extended Cobb Douglas function. Our estimation methods were Fully Modified Least Square (FMOLS) and Auto-regressive Distributed Lag Models (ARDL). We conducted a preliminary test to avoid spurious regression results by using ARDL Bound test, Augmented Dickey-Fuller and Phillips-Perron unit root test for cointegration and stationerity test. We found that some economies saw ditches with the difference whilst others experienced bumps, however, others felt no impact with the difference.
Chijioke Ekechukwu; Paulinus Chigozie Mbah
Volume 6, Issue 6 , June 2019, , Pages 454-466
Abstract
This study assesses the impact of e-banking on Nigeria’s economic growth between 2008 and 2018. It examines the impact of Mobile transfer; Point of Sale (POS); and Automated Teller Machine (ATM) on economic growth. Expost-facto research design was adopted wherein data was generated from Central ...
Read More
This study assesses the impact of e-banking on Nigeria’s economic growth between 2008 and 2018. It examines the impact of Mobile transfer; Point of Sale (POS); and Automated Teller Machine (ATM) on economic growth. Expost-facto research design was adopted wherein data was generated from Central Bank of Nigeria’s (CBN) statistical bulletin for various years, 2008 - 2018. Augmented Dickey-Fuller Unit Root test statistic, error-correction mechanism, Heteroscedasticity Breusch-Pagan-Godfrey Test, and Durbin-watson tests were used to analyse the data. The result of analysis reveals that Mobile Transfer and Point of Sales (POS) have both negative and positive impacts on the Real Gross Domestic Product (RGDP) for different years; while the Automated Teller Machine (ATM) exhibited strong positive impact on the Real Gross Domestic Product (RGDP). The implication of these finding for stakeholders and researchers in the banking industry and national economy includes its exposition of prevailing factors hindering the impact of e-banking regime, the need for urgent policy to resolve them and pursue aggressive public awareness campaigns of e-banking.
Sarah Dina; Indra Maipita; Zahari Zein
Volume 6, Issue 5 , May 2019, , Pages 400-413
Abstract
Economic growth is one of the major keys in the development of a country. This research aims to analyze the effect of capital accumulation growth, the regional minimum wages, and total factor productivity growth against Indonesia's economic growth. The analysis in this study uses the equation by the ...
Read More
Economic growth is one of the major keys in the development of a country. This research aims to analyze the effect of capital accumulation growth, the regional minimum wages, and total factor productivity growth against Indonesia's economic growth. The analysis in this study uses the equation by the method of Error Correction Model (ECM). This study analyzed the relationship between the independent variable and the dependent variable, both in the short-term and long-term. Estimation results show that in the short-term both the variable capital accumulation, the regional minimum wage and total factor productivity growth affect Indonesia's economic growth but in the long-term, there are two variables that influence positive and insignificant i.e. investment, the Regional Minimum wage affects economic growth in Indonesia. And Total Factor Productivity growth in the long-term have a positive and significant influence on economic growth in Indonesia. Thus, it can be concluded that Total Factor Productivity is the main determining factor affecting economic growth in Indonesia.
Kais Saidi; Saida Zaidi
Volume 6, Issue 1 , January 2019, , Pages 1-21
Abstract
This paper aims to assess the impact of population growth on GDP and environmental quality. For this, we use the generalized moments in system method (GMM) with dynamic panel data for ten countries over the period 1980-2013. The main results of this study are: (i) the population have a positive ...
Read More
This paper aims to assess the impact of population growth on GDP and environmental quality. For this, we use the generalized moments in system method (GMM) with dynamic panel data for ten countries over the period 1980-2013. The main results of this study are: (i) the population have a positive and significant impact on economic growth while the capital has a positive but no significant effect on economic growth. (ii) For the environment, population growth has a positive and significant effect on CO2 emissions, the urbanization is negatively and significantly contributed to CO2 emissions, but trade openness has no effect on CO2 emissions. What is concluded that the effect of the population depends on other factors such as aging, hierarchical structure and the economic level of the country?
Olusogo Olamide Ogunleye; Oluwarotimi Ayokunnu Owolabi; Muazu Mubarak
Volume 5, Issue 5 , May 2018, , Pages 282-299
Abstract
This research explores the effect of population growth on the economic growth of Nigeria over the period of 1981 to 2015. Data on GDP and exchange rate were obtained from Central Bank of Nigeria Statistical bulletin, while data on Population growth rate, fertility rate, and crude death rate, were obtained ...
Read More
This research explores the effect of population growth on the economic growth of Nigeria over the period of 1981 to 2015. Data on GDP and exchange rate were obtained from Central Bank of Nigeria Statistical bulletin, while data on Population growth rate, fertility rate, and crude death rate, were obtained from the World Bank World Development indicators. Ordinary least squares regression was used to analyze data in this study. The findings of the study reveals that population growth has a positive and significant effect on economic growth of Nigeria, while fertility was negative and significant for economic growth in Nigeria. Exchange rate and crude death rate are however insignificant for economic growth of Nigeria. The study recommends amongst other recommendations that the Nigeria government should ensure that Nigeria’s rising population are channeled into areas of the economy where they may more fully utilized in bringing about high rates of economic growth for the country. In addition, the Nigeria government should increase access to affordable health care services so as to reduce death rates in order for Nigeria to achieve increased economic growth.
Mary Githinji-Muriithi
Volume 4, Issue 11 , November 2017, , Pages 1136-1151
Abstract
The banks are very important institutions in any given economy due to their role of financing the economy. Banks if not properly regulated can fail and hinder their primary role. The main aim of the study was to carry out a literature review on the Relationship between bank failure and economic activities. ...
Read More
The banks are very important institutions in any given economy due to their role of financing the economy. Banks if not properly regulated can fail and hinder their primary role. The main aim of the study was to carry out a literature review on the Relationship between bank failure and economic activities. The specific objectives of the study are; to review the theoretical literature that anchors the study that links bank failure and economic growth, to review the empirical literature on the channels that link bank failure and economic growth, to investigate the gaps in the theoretical and empirical literature on the channels that link bank failure and economic growth and to propose a theoretical framework for linking bank failure and economic growth. The study is anchored by the agency theory, the contagion and the theory of lemons. The study empirically reviewed past studies in similar area and established gaps. The result indicated that the essential cause of the banking crunch is a physical one. Deregulation made it conceivable for commercial banks to also achieve activities of speculation banks, and for investment banks to also achieve actions of commercial banks. This had the effect of letting these organizations to association liquidity and credit risks in an unrestrained way. Double liability disclosures shareholders of deteriorating banks to misplace not only the original amount capitalized but also an amount identical to the par value of shares periods the number of shares possessed. The bank channels have a precarious role in the determining of the economy in the following ways. In the direct wealth effect when the banks fail, the investors who did not have the credits insured will have reduced wealth. This will in turn affect the real economy due to abridged consumer expenditure. Conclusion was made that bank failure remains a major threat to consistent economic growth that leads to development. The impact caused by economic contraction prevalent during this phase originated due to several shocks resulting in liquidity preference increase among depositors who preferred holding more currency to demand deposits and other liabilities. To this end, capital squeeze created reduction in money supply that affected entrepreneurial financing leading to slowdown in economic activity.
Rezvan Torabi; Mahmoud Eshraghi; Elham Nagheli
Volume 4, Issue 1 , January 2017, , Pages 56-65
Abstract
Providing stable conditions in various sectors of economy is one of the most important factors that is required for moving toward sustainable growth and holistic development in a country. One of the major prerequisites of economic stability and exiting the economic crises is financial stability. In economic ...
Read More
Providing stable conditions in various sectors of economy is one of the most important factors that is required for moving toward sustainable growth and holistic development in a country. One of the major prerequisites of economic stability and exiting the economic crises is financial stability. In economic literature, it is always emphasized on establishment of stability and sustainable growth via financial development. However, financial development requires financial tools such as an efficient banking system whose efficiency is possible through competitiveness and financial liberalization. The present study explores financial stability and economic performance in OPEC countries during the time period 2000-2013. It is applicable from objective aspect and descriptive-analytical from methodological aspect. It explores the relationship between financial sector and economic performance using the generalized method of moments (GMM) following Creel et al. (2014). The results disclosed that the effect of independent variable of financial stability on the dependent variable of economic performance (economic growth) in OPEC countries is positive and significant. This showed that increasing of financial stability and departing from financial crises decreases the investment risk and it is increased when transaction costs, production, and economic growth are increased in these countries. Likewise, the results demonstrated that the effect of the independent variable of financial liberalization on the dependent variable of economic performance (economic growth) in OPEC countries is positive and significant. This indicated that increasing of financial liberalization and improvement of financial transactions among countries will decrease the investment risk and it is increased when transaction costs, production, and economic growth are increased.
Emmanuel Okokondem Okon; Onoja Daniel Abel
Volume 3, Issue 10 , October 2016, , Pages 599-608
Abstract
The study employed multiple regression analysis model specified based on hypothesized functional relationship between telecommunication infrastructure development and economic growth of Nigeria during post deregulation period. The model for the study was estimated using the Ordinary Least Square (OLS) ...
Read More
The study employed multiple regression analysis model specified based on hypothesized functional relationship between telecommunication infrastructure development and economic growth of Nigeria during post deregulation period. The model for the study was estimated using the Ordinary Least Square (OLS) technique, and further evaluation was executed using chi-square to investigate the views of respondents on whether GSM has increased market access and reducing distribution cost in carrying out daily economic activities in Nigeria. The outcomes showed that telecommunication has influenced the country’s economy by increasing market access and reducing distribution cost. Therefore, to enhance economic growth in Nigeria, government should issue more licenses to GSM operators in order to allow for healthy competition among the GSM operators. On the other hand, operators should consider the strategy of co-location and infrastructure sharing for further improvement and reduction in cost of running telecommunication business in Nigeria.
Mahmoud Karimi; Vali Allah Aeineh Negini
Volume 3, Issue 5 , May 2016, , Pages 336-353
Abstract
Energy exchange development is an integral part of economic development. The fact that extended provision and use of energy services is firmly associated with economic development leaves open how significant energy is as a causal factor in economic development, however; and on the other side energy sector ...
Read More
Energy exchange development is an integral part of economic development. The fact that extended provision and use of energy services is firmly associated with economic development leaves open how significant energy is as a causal factor in economic development, however; and on the other side energy sector development competes with other opportunities for scarce capital and opportunities for policy and institutional reform. In this paper we first give a brief conceptual introduction that seeks to depict the structure of the paper into three sections. We then show the importance of a well-functioning energy exchange as a key on the way of economic development. Next, we describe the most important pre-conditions for a well-developed energy exchange. Finally, we suggest some solutions that can accelerate the development process. The evidence shows regulations as the most important factor and government as the best supportive body in the development process.
Attahir Babaji Abubakar; Ahmed Jinjiri Bala
Volume 3, Issue 3 , March 2016, , Pages 174-184
Abstract
This paper examines the impact of Domestic Investment and Foreign Direct Investment (FDI) on economic growth of India for the period 1980-2013 by employing the Vector Error Correction Model (VECM) methodology. Domestic Investment was broken down into Private investment and Public Investment. The ...
Read More
This paper examines the impact of Domestic Investment and Foreign Direct Investment (FDI) on economic growth of India for the period 1980-2013 by employing the Vector Error Correction Model (VECM) methodology. Domestic Investment was broken down into Private investment and Public Investment. The Augmented Dickey Fuller (ADF) test for unit root, Johansen Cointegration test, VECM, Short run Causality and Impulse Response Function (IRF) were the tools of analysis employed by the study. ADF test for unit root result shows all variables to be integrated of order one I (1), i.e. they became stationary after taking first difference. Johansen Cointegration Trace and Max-Eigen Value test shows the presence of cointegration (long run relationship) among the variables. Normalised long run estimates showed Private Domestic Investment and FDI to have a positive and significant relationship with economic growth. The relationship between Labour and economic growth was positive, though statistically insignificant, while Public investment was found to have an insignificant negative relationship with economic growth of India. Short run dynamics of the model shows Private Domestic Investment to have a significant positive relationship with Economic Growth, while FDI was found to have a short run negative impact. Other variables were found to be statistically significant in the short run. Short run Causality result confirms the presence of a short run causal relationship between Private Domestic Investment and FDI with economic growth, running from the variables to economic growth. Impulse Response Function (IRF) showed the response of GDP to a unit standard deviation innovation/ shock on Private Domestic Investment, FDI and Labour to be positive, while the response to shock in Public Investment was negative. Policy recommendations of the study to the government include the enhancement of Private Domestic Investment by removal of bottlenecks to private investment such as high interest rates, excessive taxation. The government should also encourage more FDI inflows through the creation of enabling and friendly environment to do business in India.
Olasunkanmi Owolabi-Merus; Bashir Adesoye Bello
Volume 2, Issue 9 , September 2015, , Pages 994-1004
Abstract
This study empirically investigates the agriculture-economic growth nexus in Nigeria. An economic growth model for Nigeria is specified and estimated through the use of Ordinary Least Squares as well as Johansen Cointegration and Vector Error Correction Model on annual data spanning from 1980 to 2012. ...
Read More
This study empirically investigates the agriculture-economic growth nexus in Nigeria. An economic growth model for Nigeria is specified and estimated through the use of Ordinary Least Squares as well as Johansen Cointegration and Vector Error Correction Model on annual data spanning from 1980 to 2012. The empirical result suggests that Agriculture is positively associated with economic growth in Nigeria. Results from this study also indicates that increasing the population of agriculture labour force will impact positively on economic growth. However, Infrastructure and human capital are found to be the key determinants of Nigeria‘s economic growth in the period under review. This study suggests that Nigeria policymakers should develop strategies that are geared towards infrastructure and human capital development in order to maximize the potential of the agricultural sector.
Oyeniran Ishola Wasiu; Maryam Wahab Temitope
Volume 2, Issue 7 , July 2015, , Pages 656-668
Abstract
This study examines the effect of financial integration on economic growth in Nigeria. Using time series data from 1981 and 2012, the study employs autoregressive distributed lag (ARDL) bounds testing approach proposed by Pesaran et al., (2001) to estimate the long run and short run effect of financial ...
Read More
This study examines the effect of financial integration on economic growth in Nigeria. Using time series data from 1981 and 2012, the study employs autoregressive distributed lag (ARDL) bounds testing approach proposed by Pesaran et al., (2001) to estimate the long run and short run effect of financial integration and development on economic growth. The result from cointegration test showed presence of long run relationship between dependent and all explanatory variables. The regression results show that, while financial integration has no short run effect on economic growth, its long run effect on growth is negative and significant. Financial development was found to have both short run and long run positive effect on economic growth in Nigeria. Hence, for Nigeria to benefit from financial integration, the government has to increase the level of competition, improve the quality of financial information and reduce corruption in the financial system.
Ramiar Refaei; Morteza Sameti
Volume 2, Issue 2 , February 2015, , Pages 125-135
Abstract
Foreign aid is one of the most important policy tools that rich countries use for helping poor countries to improve population well-being and facilitate economic and institutional development. The concept of foreign aid orofficial development assistance (ODA) is widely used and accepted as a flow of ...
Read More
Foreign aid is one of the most important policy tools that rich countries use for helping poor countries to improve population well-being and facilitate economic and institutional development. The concept of foreign aid orofficial development assistance (ODA) is widely used and accepted as a flow of financial resources from developed countries to developing countries on development grounds. However, the role and effects of foreign aid in the economic growth of developing countries have been and are controversial issues. This paper investigates the relationship between foreign aid and growth in per capita GDP using annual data from the 1980 to 2012 period for a sample of Iran. Three time series techniques (CCR, FMOLS and DOLS) were utilized to estimate the co-integrating equations. The results show that in long-run, effect of foreign aid on economic growth is positive, statistically significant, and sizable. Therefore, aid is more productive than domestic resources and other capital inflows.
Masoud Nonejad; Sarvoldin Fathi
Volume 1, Issue 1 , August 2014, , Pages 15-27
Abstract
The study of the reasons of economic growth is of great importance and it is always considered by many economists. Improving life quality of people and increasing public welfare are the goals of various governments in the world and economic growth is one of the important factors in achieving these goals. ...
Read More
The study of the reasons of economic growth is of great importance and it is always considered by many economists. Improving life quality of people and increasing public welfare are the goals of various governments in the world and economic growth is one of the important factors in achieving these goals. Thus, searching about the factors effective on economic growth is of great importance. The present study evaluated the relationship between energy consumption and economic growth in Iran and time series data were used during 2009-1971. To estimate model, vector error correction model (VECM) is used. The results showed that there is a two-way causal short-term and long-term relationship between energy consumption and economic growth.
