scholarly journals Gas pipeline infrastructure and economic growth of Russian regions: panel cointegration analysis

2019 ◽  
Vol 102 ◽  
pp. 02002
Author(s):  
Alexander Belinsky
Keyword(s):  
Economic Growth ◽  
Distribution Systems ◽  
Methodological Approach ◽  
Panel Cointegration ◽  
Cointegration Analysis ◽  
High Rate ◽  
Annual Data ◽  
Central Russia ◽  
Long Run ◽  
The Relationship

The Russian gas supply system is one of the largest infrastructures in the world. It is continuing to develop at a high rate. Modern methodological approaches and software allow to investigate the relationship between the development of energy infrastructure and economic dynamics of the regions. This paper proposes a methodological approach to the evaluation of the relationship “development of gas distribution systems – economic growth”. The evaluation is based on the concept of cointegration and an error-correction models. This approach identifies both long-run and short-run components of this relationship. In this paper we aim to estimate the relationship using annual data of 17 Central Russia regions for the period 1998-2017. The results indicate that this relationship is statistically significant. It allows to apply proposed approach and the obtained estimates to the problems of analysis and forecasting of the domestic gas market.

scholarly journals The Causality between Education and GDP Growth in Asian Countries

2015 ◽  
Vol 50 ◽  
pp. 28-35 ◽  
Author(s):  
Mohsen Mehrara ◽  
Maysam Musai
Keyword(s):  
Economic Growth ◽  
Formal Education ◽  
Panel Cointegration ◽  
Capital Formation ◽  
Cointegration Analysis ◽  
Point Of View ◽  
Asian Countries ◽  
Variable Model ◽  
Long Run ◽  
Educational Investments

This paper investigates the causal relationship between education and GDP in 40 Asian countries by using panel unit root tests and panel cointegration analysis for the period 1970-2010. A three-variable model is formulated with capital formation as the third variable. The results show a strong causality from investment and economic growth to education in these countries. Yet, education does not have any significant effects on GDP and investment in short- and long-run. It means that it is the capital formation and GDP that drives education in mentioned countries, not vice versa. So the findings of this paper support the point of view that it is higher economic growth that leads to higher education proxy. It seems that as the number of enrollments raise, the quality of the education declines. Moreover, the formal education systems are not market oriented in these countries. This may be the reason why huge educational investments in these developing countries fail to generate higher growth. By promoting practice-oriented training for students particularly in technical disciplines and matching education system to the needs of the labor market, it will help create long-term jobs and improve the country’s future prospects.

scholarly journals FDI and Economic Growth in EU13 Countries: Cointegration and Causality Tests

2020 ◽  
Vol 12 (3) ◽  
pp. 47-63
Author(s):  
Vlatka Bilas ◽  
Keyword(s):  
Economic Growth ◽  
Growth Rate ◽  
European Union ◽  
Annual Data ◽  
Foreign Direct Investments ◽  
Causality Test ◽  
Panel Ardl ◽  
Long Run ◽  
Causality Tests ◽  
The Relationship

Foreign direct investments are seen as a prerequisite for gaining and maintaining competitiveness. The research objective of this study is to examine the relationship between foreign direct investment (FDI) and economic growth in “new” European Union member countries using various unit root, cointegration, as well as causality tests. The paper employs annual data for FDI and gross domestic product (GDP) from 2002 to 2018 for the 13 most recent members of European Union (EU13): Bulgaria, Croatia, Cyprus, the Czech Republic, Estonia, Hungary, Latvia, Lithuania, Malta, Poland, Romania, Slovakia and Slovenia. An estimated panel ARDL (PMG) model found evidence that there is a long-run equilibrium between the LogGDP, LogFDI and LogFDIP series, with the rate of adjustment back to equilibrium between 3.27% and 20.67%. In the case of the LogFDI series, long-run coefficients are highly statistically significant in all four models, varying between 0.0828 and 0.3019. These coefficients indicate that a 1% increase in LogFDI increases LogGDP between 0.0828% and 0.3019%. Results of a Dumitrescu-Hurlin panel causality test indicated that a relationship between the GDP growth rate and FDI growth rate is only indirect. Finally, only weak evidence was shown that FDI had a statistically significant impact on GDP in the EU13 countries over the period 2002-2018. This report of findings contributes to the literature concerning FDI and economic growth, namely regarding the current understanding of the relationship between these two factors.

scholarly journals The Causality between Capital Formation and Economic Growth in MENA Region

2013 ◽  
Vol 8 ◽  
pp. 1-7 ◽  
Author(s):  
Mohsen Mehrara ◽  
Maysam Musai
Keyword(s):  
Economic Growth ◽  
North Africa ◽  
Panel Cointegration ◽  
Cointegration Analysis ◽  
Point Of View ◽  
Sustainable Growth ◽  
Domestic Investment ◽  
Mena Region ◽  
Long Run ◽  
Strong Causality

This paper investigates the causal relationship between gross domestic investment (INV) and GDP for Middle East and North Africa (MENA) region countries by using panel unit root tests and panel cointegration analysis for the period 1970-2010. The results show a strong causality from economic growth to investment in these countries. Yet, investment does not have any significant effects on GDP in short- and long-run. It means that it is the GDP that drives investment in mentioned countries, not vice versa. So the findings of this paper support the point of view that it is higher economic growth that leads to higher investment. According to the results, decision makings should be employed to achieve sustainable growth through higher productivity and substantially enlarging the economic base diversification in the future

scholarly journals The Effect of Higher Education on Growth: A Cointegration Analysis

2013 ◽  
Author(s):  
Murat Mustafa Kutlutürk ◽  
Hakan Kasım Akmaz ◽  
Ahmet Çetin
Keyword(s):  
Higher Education ◽  
Granger Causality ◽  
Cointegration Analysis ◽  
Annual Data ◽  
Causality Test ◽  
Distributed Lag ◽  
Autoregressive Distributed Lag ◽  
Long Run ◽  
Short Run ◽  
The Relationship

In this study the relationship between higher education and economic growth was investigated using annual data between 1988 and 2012 for Turkey. To see short and long run effects of higher education on growth the Autoregressive Distributed Lag (ARDL) testing approach was used. In this investigation ratio of higher education graduates in employment was used as an explanatory variable. Zivot and Andrews test was implemented for the variables. The long and short run effects of higher education on growth was found significant. Granger causality test was implemented and one way Granger causality from higher education to growth was determined.

scholarly journals Education and Economic Growth in NER States of India: A Panel Cointegration Analysis

2018 ◽  
Vol 14 (2) ◽  
pp. 89-105
Author(s):  
Md. Samsur Jaman
Keyword(s):  
Economic Growth ◽  
Social Welfare ◽  
Panel Data Analysis ◽  
Panel Cointegration ◽  
Cointegration Analysis ◽  
Eastern Region ◽  
Social Sector ◽  
Long Run ◽  
North Eastern ◽  
Social Expenditures

The main purpose of this study is examines the long run relationship between social expenditures and economic growth in North-Eastern states of India. The long run impact of expenditures in social sector such as education, health and social welfare on economic growth is investigated by applying the Pedroni’s panel Cointegration using balanced panel data analysis of eight (8) North Eastern states over the period from 2000 to 2014. In this study empirical analysis suggest the existence of dynamic relationship among expenditures on education, health and social welfare and economic growth for all cases of eight sample states. The study concludes that expenditures in the social sector can affect economic growth. Such social expenditures enhance productivity by providing infrastructure, education, health and harmonizing social interests. Thus, expenditure composition can also play an important role in promoting economic growth in North-Eastern region.

scholarly journals Exports and Economic Growth: The Arab Experience

2000 ◽  
Vol 39 (2) ◽  
pp. 153-169 ◽  
Author(s):  
Mohammed Ibrahim EL-Sakka ◽  
Naief hamad Al-Murairi
Keyword(s):  
Economic Growth ◽  
Theoretical Background ◽  
Arab Countries ◽  
Annual Data ◽  
Causality Test ◽  
Long Run ◽  
Augmented Dickey Fuller ◽  
Stationarity Tests ◽  
The Relationship ◽  
Cointegration Relationship

This paper aims at analysing the relationship between exports and economic growth in the Arab countries using annual data for the period 1970-1999. Section two of this study presents a theoretical background of the relationship between exports and economic growth. Literature review is found in Section 3. In Section 4, the methodological issues of studying this relationship are discussed. Results of stationarity tests using Augmented Dickey-Fuller (ADF) and Phillips-Perron (PP) as well as Bivariate Johansen-Juseluis tests for cointegration are presented in Section 5. Stationarity tests suggest that time series are non-stationary in their levels and seem to be stationary in their first differences. Testing for long-run cointegration relationship using Johansen-Juseluis approach, it is found that in general there is no cointegration relationship between exports and GDP. For this reason, we abandoned the error correction model and tested for causality using different versions of Granger’s causality test. We found mixed results about the causal relationship between exports and GDP in Arab countries.

scholarly journals Energy and economic growth in G20 countries: Panel cointegration analysis

2020 ◽  
Vol 9 (2) ◽  
pp. 56 ◽  
Author(s):  
Aynur Pala
Keyword(s):  
Economic Growth ◽  
Global Warming ◽  
Energy Consumption ◽  
Energy Demand ◽  
Panel Cointegration ◽  
Cointegration Analysis ◽  
Vector Error Correction ◽  
Long Run ◽  
Equilibrium Relationship ◽  
Dynamic Ols

Rising economic performance has enlarged energy demand, carbon emissions and global warming. Policymakers need to avoid global warming. Therefore, energy-growth nexus is important. This paper empirically investigates the relationship between energy consumption and economic growth for a panel of G20 countries over the period 1990-2016. For this purpose, the paper considers the panel cointegration and panel vector error correction model. Panel cointegration test set out a long-run equilibrium relationship. Long-run relationship is estimated using a Fully Modified OLS (FMOLS) and Dynamic OLS (DOLS). The results show that causality run from energy consumption to GDP. It is indicates that “growth hypothesis” is valid for G20 countries.

scholarly journals Stock Market Development and Economic Growth in Malaysia: A Revisit from 1982 to 2014

2020 ◽  
Vol 2 (1) ◽  
Author(s):  
Lee Kok Fong ◽  
◽  
Mori Kogid ◽  
Jaratin Lily ◽  
◽  
...  
Keyword(s):  
Economic Growth ◽  
Stock Market ◽  
Annual Data ◽  
Stock Market Development ◽  
Long Run ◽  
Augmented Dickey Fuller ◽  
Financial Decision ◽  
Stationarity Test ◽  
Bound Test ◽  
The Relationship

The study examines the relationship between the development of the stock market and economic growth in Malaysia using annual data from 1982 to 2014. The development of the stock market represented three indicators, namely the turnover ratio, the shares value traded ratio and the market capitalization ratio. Augmented Dickey-Fuller stationarity test was carried outprior to the use of a bound test approach for co-integration and causality testing. The findings of the co-integration analysis showed that there is evidence of a long-run relationshipbetween economic growth andthe development of the stock market. Further examination of the causal relationship showed proof of the short-runinteraction between economic growth andthe development of the stock market. These findings may be of importance to policymakers in formulating growth policy and financial decision-making by investors.

scholarly journals The Differential Impact of Financial Intermediation on Economic Growth in Oil-Dependent Economies

2018 ◽  
Vol 10 (3) ◽  
pp. 267-284
Author(s):  
Anthony Anyanwu ◽  
Christopher Gan ◽  
Baiding Hu
Keyword(s):  
Economic Growth ◽  
Panel Cointegration ◽  
Bank Credit ◽  
Gdp Per Capita ◽  
Differential Impact ◽  
Pooled Mean Group ◽  
Long Run ◽  
Panel Cointegration Test ◽  
Per Capita ◽  
The Relationship

This paper analyses the relationship between bank credit and economic growth. We extend existing literature by treating separately the oil and non-oil sectors of 28 oil-dependent economies from 1990-2012. We employ panel cointegration and pooled mean group estimation techniques which are appropriate for drawing conclusions from dynamic heterogenous panels. The results of the panel cointegration test indicate that bank credit has no significant long-run relationship with non-oil GDP per capita. The results of the pooled mean group estimator reveal no significant long-run impact of bank credit on non-oil GDP per capita. Overall results suggest that banks do not yet provide adequate credit to stimulate non-oil economic growth. The policy implication of our findings is that the financial sector should be more involved in productive investment activities to promote inclusive growth.

scholarly journals Economic growth and quality of institutions in 27 postsocialist economies

2020 ◽  
Vol 47 (4) ◽  
pp. 769-787
Author(s):  
Constantinos Alexiou ◽  
Sofoklis Vogiazas ◽  
Nikita Solovev
Keyword(s):  
Economic Growth ◽  
Panel Cointegration ◽  
Institutional Quality ◽  
Supporting Evidence ◽  
Causality Analysis ◽  
Content Type ◽  
Long Run ◽  
Quality Of Institutions ◽  
The Relationship

PurposeThe relationship between institutional quality and economic growth is revisited.Design/methodology/approachA panel cointegration methodology and causality analysis are applied to 27 postsocialist economies over the period from 1996 to 2016.FindingsUtilizing the Worldwide Governance Indicators as a means of assessing the quality of institutions, it is found that in the long run, economic growth is positively associated with the rule of law and voice and accountability. In the short run, regulatory quality retains a positive effect, but voice and accountability demonstrate a puzzling negative effect on economic growth that merits further analysis. In exploring the causal dimension of our variables, supporting evidence of the strong links between the quality of institutions and economic growth is provided, hence rendering robust results.Originality/valueTo the best of the authors’ knowledge, it is the first time that an ARDL methodological framework, which addresses potential endogeneity issues, is used to investigate the relationship between institutional quality and growth in the context of postsocialist economies.

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