scholarly journals HIGHER EDUCATION SUBSIDY POLICY AND R&D-BASED GROWTH

2019 ◽  
Vol 24 (8) ◽  
pp. 2129-2168 ◽  
Author(s):  
Takaaki Morimoto ◽  
Ken Tabata
Keyword(s):  
Higher Education ◽  
Economic Growth ◽  
Market Structure ◽  
Overlapping Generations Model ◽  
Subsidy Policy ◽  
Mass Higher Education ◽  
Long Run ◽  
Negative Effect ◽  
Short Run ◽  
Education Subsidy

We examine how a subsidy policy for encouraging more individuals to pursue higher education affects economic growth in an overlapping generations model of R&D-based growth, including both product development and process innovation. We show that such a policy may have a negative effect on the long-run economic growth rate. When the market structure adjusts partially in the short run, the effect of an education subsidy on economic growth is ambiguous and depends on the values of the parameters. However, when the market structure adjusts fully in the long run, the education subsidy expands the number of firms but reduces economic growth. These unfavorable predictions of an education subsidy on economic growth are partly consistent with the empirical findings that mass higher education does not necessarily lead to higher economic growth.

scholarly journals HIGHER EDUCATION AND ECONOMIC GROWTH A CASE STUDY OF PAKISTAN

2010 ◽  
Vol 27 (1) ◽  
Author(s):  
Tariq Mahmood
Keyword(s):  
Higher Education ◽  
Economic Growth ◽  
Positive Impact ◽  
Public Expenditures ◽  
Annual Data ◽  
Unequal Distribution ◽  
Long Run ◽  
Short Run ◽  
The Impact ◽  
Education And Economic Growth

This paper highlights the role of higher education for the economic growth inPakistan. We explore the impact of increase in enrolment at tertiary level on thegrowth rate of income per worker. Estimating a growth model developed byMankiv et. al. (1992), using the annual data of Pakistan, we find a robustrelationship between higher education and economic growth in the long run. Themodel has also shown that investment in fixed capital has positive impact oneconomic uplift. Applying Johansen’s cointegration test, we show that the longrun elasticity of income with respect to capital stock is different from its share inGDP, and increase in the enrolment per unit of effective worker helps inbolstering economic growth. But, like earlier literature we also find statisticallyinsignificant relationship between higher education and GDP per worker. Thereare some fundamental reasons concerning to the ambiguous impact of investingin human capital on economic growth, particularly in the short run in case ofPakistan. First, the sharp increase in enrollment, recently, has been damaging thequality of education. Second, the unequal distribution of educational services hasheld back the efficiency of public expenditures, particularly before the reformsundertaken by higher education commission. Third, the low private return ofeducation has limited the demand for higher education in Pakistan for almost fiftyyears.

scholarly journals Effect of Institutional Quality and Wealth from Oil Revenue on Economic Growth in Oil-Exporting Developing Countries

2019 ◽  
Vol 11 (13) ◽  
pp. 3635 ◽  
Author(s):  
Adewale Samuel Hassan ◽  
Daniel Francois Meyer ◽  
Sebastian Kot
Keyword(s):  
Economic Growth ◽  
Developing Countries ◽  
Institutional Quality ◽  
Linear Interaction ◽  
Distributed Lag ◽  
Oil Revenue ◽  
Long Run ◽  
Negative Effect ◽  
Short Run ◽  
Oil Wealth

This article investigates the role of institutional quality in the oil wealth–economic growth nexus for 35 oil-exporting developing countries between 1984 and 2016. To achieve this objective, an empirical model was employed with linear interaction between oil wealth and institutional quality, and estimated by means of panel autoregressive distributed lag (ARDL) with a dynamic fixed effect estimator. From the results, a contingent effect of oil wealth on economic growth, both in the long run and in the short run, was established. Specifically, institutional quality was found to mitigate the negative effect of oil wealth on economic growth in the long run, while in the short run, institutional quality was found to enhance the positive effect of oil wealth on economic growth. Furthermore, the results provide the threshold levels of institutional quality, beyond which oil wealth enhances economic growth, both in the long run and in the short run, for the sampled countries. These results suggest that in order for oil-exporting developing countries to benefit from an increase in oil wealth, they must adopt appropriate policy measures to improve their levels of institutional quality and embed their entire oil wealth-generating mechanism in a sound institutional framework. Also of importance is that governments must ensure sustainable development through the benefits of wealth from oil.

Determinants of Export Performance in Ethiopia

2020 ◽  
Author(s):  
Ezo Emako Kamma
Keyword(s):  
Economic Growth ◽  
Export Performance ◽  
Industrial Sector ◽  
Foreign Demand ◽  
Long Run ◽  
Export Supply ◽  
Negative Effect ◽  
Short Run ◽  
Real Value ◽  
Marketing Costs

Abstract Ethiopia has adopted different policy measures geared at promoting exports. As a result the real value of export has increased by more than 13 folds during 1980-2018 periods; however, its share in gross domestic product and import bills is being very small. Therefore, this article aimed to investigate the factors responsible for export performance over the period 1980-2018 by using the bound co-integration approach. In the long run, the regression analysis implies that real economic growth, inflation and the foreign demand are found to have a positive effect, whereas openness and the share of agriculture have a negative effect. Real economic growth, inflation and the foreign demand depressingly affect the export supply in the short run whereas openness affects positively but the share of agriculture was not found to be crucial. Thus, in order Ethiopia economy to improve its own export supply, focusing on industrial sector, ensuring and expanding vocational and technical education, trying to reduce marketing costs through the process by making transparent, and diversifying the destination are very crucial policy tools.

scholarly journals The Asymmetric Relationship Between Military Expenditure, Economic Growth and Industrial Productivity: An Empirical Analysis of India, China and Pakistan Via the NARDL Approach

2021 ◽  
Vol 13 (1) ◽  
Author(s):  
Aamir Syed
Keyword(s):  
Economic Growth ◽  
Negative Impact ◽  
Positive Impact ◽  
Research Work ◽  
Military Expenditure ◽  
Economic Policies ◽  
Long Run ◽  
Negative Effect ◽  
Short Run ◽  
Industrial Productivity

This research work aims to verify how military expenditure promotes economic growth and industrial productivity, as suggested by the Military Keynesianism postulate. The NARDL method is employed to achieve the above objective on the panel data of India, China, and Pakistan, covering the period between 1990 and 2018. The study finds that the positive and negative impact of military expenditure has a significant positive and negative effect on economic growth in the long run for China and India; however, in the short-run, only positive impact favors economic growth. Thus, there is a symmetric effect in the short-run and an asymmetric impact in the long-run. This asymmetric result supports the work of Military Keynesianism, helping policymakers in devising appropriate macro-economic policies.

scholarly journals Inflation and Financial Sector Performance: The Case of Nigeria

2014 ◽  
Vol 7 (1) ◽  
pp. 55-69 ◽  
Author(s):  
R. Santos Alimi
Keyword(s):  
Economic Growth ◽  
Financial Development ◽  
Financial Sector ◽  
Macroeconomic Performance ◽  
Financial Sector Development ◽  
Long Run ◽  
Negative Effect ◽  
Short Run ◽  
Sector Performance ◽  
Definition Of

Abstract The paper examines the long run and short run relationships between inflation and the financial sector development in Nigeria over the period between 1970 and 2012. Three variables, namely; broad definition of money as ratio of GDP, quasi money as share of GDP and credit to private sector as share of GDP, were used to proxy financial sector development. Our findings suggest that inflation presented deleterious effects on financial development over the study period. The main implication of the results is that poor macroeconomic performance has deleterious effects to financial development - a variable that is important for affecting economic growth and income inequality. Moreover, we observed a negative effect of the measures of financial development on growth, suggesting that impact of inflation on the economic growth passes through financial sector. Therefore, low and stable prices, is a necessary first step to achieving a deeper and more active financial sector that will enhance growth as predicted by Schumpeter.

scholarly journals Does formal education at all levels cause economic growth? Evidence from Greece

2015 ◽  
Vol 8 (1) ◽  
pp. 9-32 ◽  
Author(s):  
Panagiotis Pegkas ◽  
Constantinos Tsamadias
Keyword(s):  
Higher Education ◽  
Economic Growth ◽  
Gross Domestic Product ◽  
Educational Level ◽  
Formal Education ◽  
Positive Impact ◽  
Educational Levels ◽  
Long Run ◽  
Short Run ◽  
The Empirical Analysis

AbstractThis study empirically investigates the link between the levels of formal education and economic growth in Greece during the period 1960-2009. The paper applies the Lucas approach (1988) and employs cointegration, error-correction models and estimates the effect of each educational level on economic growth. The empirical analysis reveals that there is a long-run relation between educational levels and gross domestic product. The overall results show that secondary and higher education has had a statistically significant positive impact on growth, while primary has not contributed to economic growth. The findings also suggest that there is evidence of unidirectional long-run causality running from primary education to growth, bidirectional long-run causality between secondary and growth, long-run and short-run causality running from higher education to economic growth.

scholarly journals Elections, Foreign Direct Investment, and Economic Growth in Ghana’s Fourth Republic: 1993 to 2016

2019 ◽  
pp. 1-8
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
Time Series Data ◽  
Positive Impact ◽  
Series Data ◽  
Long Run ◽  
Negative Effect ◽  
Short Run ◽  
The Impact

Foreign Direct Investment (FDI) has been seen as an important factor influencing economic growth directly and indirectly in both developed and developing countries. This study assesses the impact of FDI on growth in Ghana since the return to constitutional rule in 1993. The study uses time series data from 1993 to 2016. Using the Autoregressive Distributed Lagged model (ARDL), the study finds a positive impact of FDI on growth both in the short-run and long-run. However, there is a lag period of two. The study equally finds that Gross Saving has a positive impact on growth. On the other hand inflation has a negative effect on growth both in the short and long run. The study also discovered that FDI granger causes growth but GDP does not granger cause FDI. Post-election years with incidence of political uncertainty slow down FDI inflow into Ghana. The study recommends the adoption of stringent fiscal and monetary policies to keep inflation low. It also recommends maintaining and improving the liberal market environment to attract investors, policies to encourage saving, and improving on political transitions to avoid uncertainties for investors.

Military Expenditure, Economic Growth, and Foreign Policy Implications

2018 ◽  
pp. 24-45
Author(s):  
Bertha Z. Osie-Hwedie ◽  
Napoleon Kurantin
Keyword(s):  
Economic Growth ◽  
Developing Countries ◽  
Foreign Policy ◽  
High Growth ◽  
Economic Cost ◽  
Military Expenditure ◽  
Domestic Security ◽  
Long Run ◽  
Negative Effect ◽  
Short Run

The chapter discusses the nature of the relationship between military expenditure, economic growth, and foreign policy commitments, and the consequences on economic growth of apportioning an increased part of the gross domestic product to the military in developing countries of Ghana and Nigeria within the Economic Community of West Africa during 1986-2016. Military expenditure has generated controversy, especially in developing countries of Africa, as it competes with demands for sustainable growth and development. Applying the Johansen co-integration test and Granger causality, the results show that high growth rates have enabled the two countries to increase military spending, ensure their own domestic security, and fulfill international security commitments in the West African sub-region and internationally, with negative effect in the long-run and positive effect in the short run on economic growth. The lack of defense and military expenditure linkage with the wider economy is the resultant socio-economic cost recorded over the period under study.

Military Expenditure, Economic Growth, and Foreign Policy Implications

2019 ◽  
pp. 836-857
Author(s):  
Bertha Z. Osie-Hwedie ◽  
Napoleon Kurantin
Keyword(s):  
Economic Growth ◽  
Developing Countries ◽  
Foreign Policy ◽  
High Growth ◽  
Economic Cost ◽  
Military Expenditure ◽  
Domestic Security ◽  
Long Run ◽  
Negative Effect ◽  
Short Run

The chapter discusses the nature of the relationship between military expenditure, economic growth, and foreign policy commitments, and the consequences on economic growth of apportioning an increased part of the gross domestic product to the military in developing countries of Ghana and Nigeria within the Economic Community of West Africa during 1986-2016. Military expenditure has generated controversy, especially in developing countries of Africa, as it competes with demands for sustainable growth and development. Applying the Johansen co-integration test and Granger causality, the results show that high growth rates have enabled the two countries to increase military spending, ensure their own domestic security, and fulfill international security commitments in the West African sub-region and internationally, with negative effect in the long-run and positive effect in the short run on economic growth. The lack of defense and military expenditure linkage with the wider economy is the resultant socio-economic cost recorded over the period under study.

scholarly journals The impact of military spendings on economic growth of Pakistan

2017 ◽  
Vol 1 (1) ◽  
pp. 53-64
Author(s):  
Sajjad ◽  
Tariq ◽  
Muhammad Tariq
Keyword(s):  
Economic Growth ◽  
Positive Impact ◽  
Bounds Testing ◽  
Distributed Lag ◽  
Long Run ◽  
Defence Spending ◽  
Augmented Dickey Fuller ◽  
Negative Effect ◽  
Short Run ◽  
The Impact

A sound national defence is extremely essential for a country’s sovereignty. The geostrategic position of Pakistan and its deterrence policy against neighbouring India have generally been the reasons for stringent military financing. Defence spending affects all sectors of the economy directly or indirectly. This study aims to investigate the influence of government military expenditures on the economic growth of Pakistan over the period 1987-2016. Augmented Dickey-Fuller test has been used for checking the unit root in the data. Autoregressive Distributed Lag (ARDL) bounds testing approach to cointegration has been applied to analyze the relationship between military spending and economic growth. The findings indicate that military expenditure has a positive impact on Pakistan's economic growth in the long-run, however it has negative effect on economic growth in the short-run.

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