Determining the Ways to Increase Economic Growth of Developing and Developed Economies: An Application with Data Mining and Fuzzy TOPSIS

This paper examines the relation between regulation and economic performance in the context of 23 developed economies. We apply a generalisation of the growth accounting model popularized by Solow to data over the 2002-2008 period. In the model, we assume that regulatory quality impacts on growth via its impact on total factor productivity growth. We look at three measures of regulatory quality, all of which are based on the set of governance indicators developed by the World Bank. The model is estimated using a fixed effects as well as a random effects estimation strategy. Our findings do lend support for the view that the better the quality of regulation, the higher rate of economic growth, but find no support for the view that the strength of the positive growth impact is stronger for countries that rank relatively lower on the regulatory quality scale.

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The Impact of Real Exchange Rate Undervaluation on Economic Growth: Evidence from Panel Cointegration Approach

10.21203/rs.3.rs-16924/v1 ◽

2020 ◽

Author(s):

Mehdi Seraj ◽

Cagay Coskuner ◽

Seyi Saint Akadiri ◽

Negar Bahadori

Keyword(s):

Economic Growth ◽

Exchange Rate ◽

Real Exchange Rate ◽

Developing Economies ◽

Panel Cointegration ◽

Least Square ◽

Ordinary Least Square ◽

Developed Economies ◽

Periodic Data ◽

The Impact

Abstract This study revisited Dani Rodrik (2008) work on real exchange rate undervaluation and economic growth by using the Fully Modified Ordinary Least Square (FMOLS) and Dynamic Ordinary Least Square (DOLS). This research, to the best of authors' knowledge, is the first to use FMOLS and DOLS approach to empirically evaluate Rodrik work on the real exchange rate and economic growth using a Panel periodic data (six sets of five years) of 82 countries throughout 1990 to 2018. We used the Balassa Samuelson method to estimate the predicted real exchange rate and real exchange rate undervaluation. Finally, the study is in support of Rodrik conclusion that, real exchange undervaluation has a significant impact on the economic growth of the developing economies and statistically insignificant in the developed economies.

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Fiscal consolidation in developed and emerging economies

Nova Economia ◽

10.1590/0103-6351/3550 ◽

2015 ◽

Vol 25 (spe) ◽

pp. 835-861

Author(s):

Paulo André Camuri ◽

Frederico G. Jayme Jr. ◽

Ana Maria Hermeto

Keyword(s):

Economic Growth ◽

Emerging Economies ◽

Standard Errors ◽

Economic Policies ◽

Fiscal Consolidation ◽

Transition Path ◽

Causality Test ◽

Developed Economies ◽

Fiscal Space ◽

Main Determinants

Abstract: The debate regarding fiscal policy has given support to the formulation of an economic policy based on control of indebtedness and in persecution of public savings, acting as important support for the economic growth. This paper presents evidence that counter acts this theory of expansionary austerity. A set of panel data regressions is estimated - through Driscoll & Kraay’s, FGLS, panel corrected standard errors, and SUR estimators and the causality test approach proposed by Kónya (2006) - in search of robust inference related to the main determinants that encompasses the fiscal framework. Our conclusion is that the empirical evidence - using a set of 20 developed economies and other of 24 emerging economies - suggests that identical economic policies for different countries might conduce to results that are opposite to the desired outcome. Notwithstanding the adverse effects associated to explosive debt path, the search for “fiscal space” should be determined essentially by a pro-growth agenda. This is particularly important for the emerging economies facing the transition path challenges.

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Size of government and economic growth: A nonlinear analysis

Economic Annals ◽

10.2298/eka1294007h ◽

2012 ◽

Vol 57 (194) ◽

pp. 7-30 ◽

Cited By ~ 9

Author(s):

Shanaka Herath

Keyword(s):

Economic Growth ◽

Sri Lanka ◽

Polynomial Regression ◽

Developing Economies ◽

Government Expenditure ◽

Analytical Framework ◽

Optimal Level ◽

Size Of Government ◽

Developed Economies ◽

Productive Output

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.

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Inflation and Economic Growth: a Review of The International Literature

Comparative Economic Research ◽

10.1515/cer-2017-0019 ◽

2017 ◽

Vol 20 (3) ◽

pp. 41-56 ◽

Cited By ~ 3

Author(s):

Foluso A. Akinsola ◽

Nicholas M. Odhiambo

Keyword(s):

Economic Growth ◽

Developing Countries ◽

Negative Relationship ◽

Threshold Level ◽

Data Set ◽

Developed Economies ◽

The Impact ◽

The Relationship ◽

Over Time ◽

Country Specific

This paper surveys the existing literature on the relationship between inflation and economic growth in developed and developing countries, highlighting the theoretical and empirical indications. The study finds that the impact of inflation on economic growth varies from country to country and over time. The study also finds that the results from these studies depend on country‑specific characteristics, the data set used, and the methodology employed. On balance, the study finds overwhelming support in favour of a negative relationship between inflation and growth, especially in developed economies. However, there is still much controversy about the specific threshold level of inflation that is appropriate for growth. Most previous studies on this subject just assume a unidirectional causal relationsship between inflation and economic growth. To our knowledge, this may be the first review of its kind to survey, in detail, the existing research on the relationship between inflation and economic growth in developed and developing countries.

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The Relationships between Military Expenditures and Unemployment in G-20 States

International Conference on Eurasian Economies 2016 ◽

10.36880/c07.01634 ◽

2016 ◽

Author(s):

Ahmet Fatih Aydemir ◽

Dilek Özdemir ◽

Ömer Selçuk Emsen

Keyword(s):

Economic Growth ◽

Military Spending ◽

Military Expenditure ◽

Negative Effects ◽

The Public ◽

Developed Economies ◽

Positive Effects ◽

Military Expenditures ◽

Liberal Approach ◽

The Military

The effects of the military expenditure on the economic growth and consequently on the employment has been the primary topic of the discussing in the literature of economics. Considering that the military expenditures generally emerge as a sub-item of the public spending, it has been asserted by the liberal approach that the principle of the non-productiveness of the public sector would be even more applicable in the military expenditures. None the less, using the military spending as a tool to lead an economy that feature underemployment constitutes the positive aspect of the views to the military expenditure and this is also the case of the prediction of the Keynesian economy. In this study, the effects of the military expenditure on the unemployment, which is a reflection of the effects of the economic growth, are analyzed as the subject matter. The findings revealed that the military spending has positive effects on the unemployment in some G20 states while it also has negative effects in some and has neutral effects in others. In addition, it is further indicated that the positive effects are experienced in relatively advanced economies, the negative effects emerge in relatively less developed economies, and the countries with abundant natural resources experience neutral effects.

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Volatility in Discretionary Public Spending and Economic Growth: A Cross Country Analysis

The Pakistan Development Review ◽

10.30541/v59i1pp.45-68 ◽

2020 ◽

Vol 59 (1) ◽

pp. 45-68

Author(s):

Muhsin Ali ◽

Karim Khan

Keyword(s):

Economic Growth ◽

Economic Performance ◽

Developing Economies ◽

Public Spending ◽

Jel Classification ◽

Developed Economies ◽

Potential Control ◽

Country Analysis ◽

Cross Country ◽

The Impact

Volatility in discretionary public spending has diverse implications for the overall economic performance of economies. In this study, we examine the impact of volatile non�systematic discretionary public spending on economic growth. By employing cross-country data of 74 developed and developing economies, we find that volatility in non-systematic discretionary public spending has an adverse impact on economic growth. In particular, such impact is severe in the case of less developed economies. Our findings are robust to the problem of endogeneity. In order to ensure the accuracy of the results, we conduct sufficient sensitivity analysis by incorporating a bunch of potential control variables. In most of the cases, the results with regard to the policy volatility remain intact. This suggests that effective spending rules, i.e. permanent numerical limits, should be imposed on budgetary aggregates to restrain governments from the volatile use of discretionary spending. JEL Classification: H3; H5 Keywords: Volatility in Discretionary Public Spending, Economic Growth, Effective Spending Rule

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The Importance Of SMEs On World Economies

International Conference on Eurasian Economies 2019 ◽

10.36880/c11.02265 ◽

2019 ◽

Author(s):

Murat Bayraktar ◽

Neşe Algan

Keyword(s):

Economic Growth ◽

Development Strategy ◽

Global Economy ◽

World Economy ◽

Poverty Reduction ◽

National Development ◽

Business Sector ◽

Developed Economies ◽

Turn On ◽

The World

The importance of SMEs to world economies is well reported. SMEs (firms with 200 or less employees) construct the biggest business sector in each global economy therefore governments around the world are increase the effort to promote and support SME expansion as their national development strategy. Micro firms and SMEs are forming the majority of firms in most countries (which 95% on average) and for the large majority of jobs. While SMEs are dominating of very great numbers, SMEs are significant due to their importance as priority drivers to employment, economic growth and innovation. According to the World Trade Organization SMEs represent over 90% of the business population, 60-70% of employment and 55% of GDP in developed economies. SMEs held for around 20% of patents, one measure of innovation, in biotechnology-related fields in the Europe. As the world economy faces with prevailing challenges, governments increasingly start to turn on SMEs as a significant element of sustainable and inclusive economic growth. The importance of SMEs to; economic growth, poverty reduction, innovation and job creation also social cohesion are major key.

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