Financial innovation, human capital development, and economic growth of selected South Asian countries: An application of ARDL approach

Recent studies which investigated the determinants of foreign direct investment (FDI) in BRICS include Hsin-Hong and Shou-Ronne (2012), Nandi (2012), Jadhav (2012), Darzini and Amirmojahedi (2013), Nischith (2013), Ho et al. (2013), Kaur et al. (2013) and Priya and Archana (2014). The findings from these studies shows lack of consensus and confirm that a list of agreeable determinants of FDI in BRICS countries is still an unsettled matter. This paper was therefore initiated in order to contribute to the debate on the discourse on FDI determinants in BRICS countries.This paper deviates from earlier similar studies in five ways: (1) uses most recent data, (2) is the first to investigate whether a combination of financial development, trade openness, human capital, economic growth and inflation influence FDI in BRICS countries, (3) uses different proxies of the variables that affect FDI, (4) employed both fixed effects and pooled ordinary least squares (OLS) approaches and (5) used a stacked data approach.The results of the study showed that economic growth, trade openness and exchange rate stability positively impacted on FDI, financial development positively influenced FDI under fixed effects, FDI was positively influenced by human capital development using the pooled OLS and inflation negatively affected FDI in line with literature. Taking into account these findings, this study urges BRICS to implement policies that increase financial sector efficiency and economic growth, maintain stable exchange rates, keep inflation rates at lower levels, enhance trade openness and human capital development in order to increase FDI inflows.

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Government Expenditure on Human Capital Development: Implications for Economic Growth in Nigeria

Journal of Sustainable Development ◽

10.5539/jsd.v4n3p72 ◽

2011 ◽

Vol 4 (3) ◽

Cited By ~ 22

Author(s):

Stephen O. Oluwatobi ◽

Oluranti. I. Ogunrinola

Keyword(s):

Economic Growth ◽

Human Capital ◽

Government Expenditure ◽

Human Capital Development ◽

Capital Development

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Investigating the Role of Regional Economic Integration on Growth: Fresh Insights from South Asia

Global Journal of Emerging Market Economies ◽

10.1177/0974910120974800 ◽

2020 ◽

pp. 097491012097480

Author(s):

Muhammad Ibrahim Shah

Keyword(s):

Economic Growth ◽

Human Capital ◽

South Asia ◽

South Asian ◽

Economic Integration ◽

Regional Integration ◽

Policy Implications ◽

Regional Economic Integration ◽

Asian Countries ◽

Regional Economic

Regional economic integration is the key to achieving prosperity and stability. However, intra-regional trade in South Asia accounts for not more than 5%–6% of their total trade. This study aims to examine the role played by regional economic integration in determining the economic growth of South Asian countries over the period 1980–2015. Since shocks in one country may affect another country in the region, this is taken into account in the article by employing methodologies that are robust to cross sectional dependence. Specifically, continuously-updated and bias-corrected (CupBC) of Bai et al. (2009) and Dumitrescu–Hurlin panel causality test (2012) have been employed to estimate long-run coefficients and determine the direction of relationship among the variables, respectively. The findings suggest that economic integration increases economic growth significantly in this region. However, contrary to popular belief, both democracy and human capital are negatively related to economic growth. Bidirectional causality is found between economic integration and democracy, regional integration and human capital, democracy and human capital and, democracy and labor. This study also presents several policy implications for South Asian countries.

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Sources of Economic Growth in Zambia: An Empirical Investigation

Global Business Review ◽

10.1177/0972150916668449 ◽

2017 ◽

Vol 18 (2) ◽

pp. 275-290 ◽

Cited By ~ 11

Author(s):

Themba G. Chirwa ◽

Nicholas M. Odhiambo

Keyword(s):

Economic Growth ◽

Human Capital ◽

International Trade ◽

Foreign Aid ◽

Development Aid ◽

Human Capital Development ◽

Long Run ◽

Short Run ◽

Capital Development ◽

Macroeconomic Determinants

In this article, the key macroeconomic determinants of economic growth in Zambia are investigated using the autoregressive distributed lag (ARDL) bounds testing approach. The study has been motivated by the unsustainable growth trends that Zambia has been experiencing in recent years. Our study finds that the key macroeconomic determinants that are significantly associated with economic growth in Zambia include, amongst others, investment, human capital development, government consumption, international trade and foreign aid. The study’s results reveal that in the short run, investment and human capital development are positively associated with economic growth, while government consumption, international trade and foreign aid are negatively associated with economic growth. However, in the long run, the study finds investment and human capital development to be positively associated with economic growth, while only foreign aid is negatively associated with economic growth. These results have significant policy implications. They imply that short–run economic policies should focus on creating incentives that attract investment and increase the quality of education, the effectiveness of government institutions, the promotion of international trade reforms and the effectiveness of development aid. In the long run, development strategies should focus on attracting the accumulation of long-term investment, improving the quality of education and the effectiveness of development aid.

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Trade Openness and Economic Growth in Malaysia

Foreign Trade Review ◽

10.1177/0015732516663317 ◽

2017 ◽

Vol 52 (3) ◽

pp. 157-170 ◽

Cited By ~ 8

Author(s):

Keshmeer Makun

Keyword(s):

Economic Growth ◽

Human Capital ◽

Trade Openness ◽

Decision Makers ◽

Economic Policies ◽

Human Capital Development ◽

Full Benefit ◽

Capital Development ◽

Positive Effect ◽

Econometric Technique

This study is an attempt to examine the effects of trade openness along with two other conditioning variables on economic growth in Malaysia by applying time-series econometric technique. LSE-Henry’s general to specific approach results show significant positive effect of trade openness on growth. Human capital and good economic policies tested with an interaction term increases the growth effects of trade openness. The addition of these variables and findings are significant statistically and robust to different specifications. On the basis of the findings, it is concluded that while trade openness enhance growth, decision makers should also focus on human capital development. In addition, decision makers should ensure good economic policies to take full benefit of trade openness.

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Selected macroeconomic determinants and economic growth in Cameroon (1970–2018) “dead or alive” an ARDL approach

Journal of Business and Socio-economic Development ◽

10.1108/jbsed-05-2021-0061 ◽

2021 ◽

Vol ahead-of-print (ahead-of-print) ◽

Author(s):

Kesuh Jude Thaddeus ◽

Chi Aloysius Ngong ◽

Njimukala Moses Nebong ◽

Akume Daniel Akume ◽

Jumbo Urie Eleazar ◽

...

Keyword(s):

Economic Growth ◽

Human Capital ◽

Foreign Direct Investment ◽

Direct Investment ◽

Government Expenditure ◽

Human Capital Development ◽

Content Type ◽

Capital Development ◽

Macroeconomic Determinants ◽

The Impact

PurposeThe purpose of this paper is to examine key macroeconomic determinants on Cameroon's economic growth from 1970 to 2018.Design/methodology/approachData were obtained from the World Development Indicators and applied on time series data econometric techniques. The auto-regressive distributed lag (ARDL) bounds model analyzed the data since the variables had different order of integration.FindingsThe results showed long and short runs’ positive and significant connection between economic growth in Cameroon and government expenditure; trade openness, gross capital formation and exchange rate. Human capital development, foreign aid, money supply, inflation and foreign direct investment negatively and significantly affected economic growth in the short and long-runs. Hence, the macroeconomic indicators are not death.Research limitations/implicationsThe present research paper has tried to capture the impact of nine macroeconomic determinants on economic growth such as the government expenditure (LNGOVEXP), human capital development (LNHCD), foreign aids (AID), trade openness (LNTOP), foreign direct investment (LNFDI), gross capital formation (INVEST), broad money (LNM2), official exchange rate (LNEXHRATE) and Inflation (LNINFLA). However, these variables have the tendency to affect each other in a unidirectional or bidirectional manner. Further, the present research paper is unable to capture the impact of other macroeconomic variable due to the unavailability of data.Practical implicationsThe study recommends that Cameroon should use proper planning and strategic policy interventions to achieve higher sustainable economic growth with human capital development, foreign aid, money supply, foreign direct investment and moderate inflation.Social implicationsMacroeconomic indicators, if managed well, increase economic growth.Originality/valueThis paper to the best of the researcher's knowledge presents new background information to both policymakers and researchers on the main macroeconomic determinants using econometric analysis.

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