The role of governance in economic development

2014 ◽  
Vol 41 (12) ◽  
pp. 1265-1278 ◽  
Author(s):  
Muhammad Azam ◽  
Chandra Emirullah
Keyword(s):  
Economic Growth ◽  
Inflation Rate ◽  
Gdp Per Capita ◽  
Dependency Ratio ◽  
Control Variables ◽  
Content Type ◽  
The Pacific ◽  
Per Capita ◽  
Openness To Trade ◽  
The Impact

Purpose – The purpose of this paper is to explore the impact of corruption as an important element of weak governance, with control variables such as inflation rate, openness to trade and dependency ratio on gross domestic product (GDP) per capita income of nine selected countries in Asia and the Pacific. Design/methodology/approach – This study is based on an annual panel data covering the period from 1985 to 2012, and a simple multiple regression for empirical investigation is used. Both fixed effects and random effects models were used as analytical techniques. Findings – The study reveals that both corruption and inflation rate are negatively related to GDP per capita and are statistically significant. As to the impacts of the control variables i.e., dependency ratio is found to be negative and openness to trade to be statistically significant which shows a positive impact on GDP per capita. Practical implications – The results resoundingly confirmed the importance of good governance, therefore, reducing endemic corruption and controlling inflation needs to be among the foremost factors for consideration for policymakers in adopting and implementing macroeconomic and public policies. In order to be most effective in tackling corruption, it is important to get to the root of the problem. In light of the study findings, it is suggested that corruption need to be put under control and economies be made more open to attain more benefits and accelerate economic growth and development. Originality/value – Explicitly, this study provides some valuable evidence on the linkage between endemic corruption and economic growth in some Asia and the Pacific countries in particular and on developing world in general. Presumably, this is the first inclusive investigation on the subject under the study in the context of Asia and the Pacific countries and will emphatically contribute to the literature as well.

scholarly journals The Nexus between Education and Economic Growth: Analyzing Empirically a Case of Middle-Income Countries

2020 ◽  
Vol 3 (2) ◽  
pp. 43-60
Author(s):  
Lamia Jamel ◽  
Monia Ben Ltaifa ◽  
Ahmed K Elnagar ◽  
Abdelkader Derbali ◽  
Ali Lamouchi
Keyword(s):  
Economic Growth ◽  
Labour Force ◽  
Sub Saharan Africa ◽  
Gdp Per Capita ◽  
Middle Income ◽  
Middle Income Countries ◽  
The Pacific ◽  
Per Capita ◽  
Sub Saharan ◽  
The Impact

The purpose of this paper is to examine empirically the nexus between education accumulation and economic growth for a sample of middle-income countries through panel data regressions. The sample consists of 28 middle-income countries from various continents: North Africa and the Middle East (6 countries), sub-Saharan Africa (7 countries), Latin America and the Caribbean (8 countries), East Asia and the Pacific (3 countries), and Europe and Central Asia (4 countries). Education is measured by quantitative (average years of labour force study) and qualitative indicators (student scores on international assessments of educational achievements). To test the impact of education accumulation on GDP per capita growth, a static panel is used during the period of study from 1970 to 2014. A dynamic panel is also being developed to estimate the effect of the education stock on the growth rate of GDP per capita. The results confirm the positive and significant impact of the education quantity and quality on economic growth, both in level and variation. The stock of education and its increase are positively affecting the growth. Moreover, this paper’s original findings suggest that the quality of education is more significant than its quantity.

Measuring the Impact of Tourism on Economic Growth

2007 ◽  
Vol 13 (3) ◽  
pp. 379-388 ◽  
Author(s):  
Stanislav Ivanov ◽  
Craig Webster
Keyword(s):  
Economic Growth ◽  
General Equilibrium ◽  
Computable General Equilibrium ◽  
Gdp Per Capita ◽  
Equilibrium Models ◽  
Computable General Equilibrium Models ◽  
Real Gdp ◽  
Real Gdp Per Capita ◽  
Per Capita ◽  
The Impact

This paper presents a methodology for measuring the contribution of tourism to an economy's growth, which is tested with data for Cyprus, Greece and Spain. The authors use the growth of real GDP per capita as a measure of economic growth and disaggregate it into economic growth generated by tourism and economic growth generated by other industries. The methodology is compared with other existing methodologies; namely, Tourism Satellite Account, Computable General Equilibrium models and econometric modelling of economic growth.

scholarly journals THE CONTRIBUTION OF MIGRATION TO ECONOMIC GROWTH: THE EXAMPLE OF THE CITY OF ZAGREB

2021 ◽  
Vol 21 (1) ◽  
Author(s):  
Vinko Miličević ◽  
Danijel Knežević ◽  
Zoran Bubaš
Keyword(s):  
Economic Growth ◽  
European Union ◽  
Economic Activity ◽  
Economic Benefits ◽  
Gdp Per Capita ◽  
The European Union ◽  
Per Capita ◽  
The Republic ◽  
The Impact ◽  
The City

The problems in this paper belong to the field of migration and economy. The connection between migration and the economy has been proven on a global level, and as far as the Republic of Croatia is concerned, it is especially important to observe it through the City of Zagreb, which is the most important migration and economic center in the Republic of Croatia. Also, the accession of the Republic of Croatia to the European Union emphasized the observation and research of this connection because it created the preconditions for freer movement and employment of the population of the Republic of Croatia and the City of Zagreb within the European Union. The aim of this paper is to determine the contribution of migration to the economic growth of the City of Zagreb. The hypothesis presented in the paper is that there is a significant contribution of migration to the economic growth of the City of Zagreb. The disposition of the paper consists of six parts. The introduction explains the relevance of the topic, states the aim of the paper and hypotheses, explains the empirical part, the contribution of the paper and the disposition. The second part of the paper refers to the theoretical framework of the impact of migration on economic growth. The third part of the paper presents the migration processes of the City of Zagreb in the period from 2011 to 2018. The fourth part deals with economic activity in the City of Zagreb in the period from 2011 to 2017. The observed indicators of economic activity in the City of Zagreb are GDP and GDP per capita, and the graph in this part of the paper shows that GDP and GDP per capita in the observed period are higher at the end of the period than at the beginning. The fifth part of the paper refers to the empirical research of the contribution of migration to the economic growth of the City of Zagreb. The empirical part of the paper is based on correlations and regression analyses. This paper proves the hypothesis because the results indicate a significant impact of the variables of total and external migration on the GDP of the City of Zagreb and GDP per capita of the City of Zagreb. Decision-makers in the City of Zagreb can use the results of the research as a basis for maximizing the economic benefits they can get from migration. The conclusion provides an overview of the aim of the work, the results of the research, the limitations, the implications and the recommendations for future research.

scholarly journals Trade Openness and Economic Growth Nexus: A Case Study of BRICS

2018 ◽  
Vol 54 (1) ◽  
pp. 1-15 ◽  
Author(s):  
L. G. Burange ◽  
Rucha R. Ranadive ◽  
Neha N. Karnik
Keyword(s):  
Economic Growth ◽  
Time Series ◽  
Causal Relationship ◽  
Trade Openness ◽  
Gdp Per Capita ◽  
Jel Codes ◽  
Per Capita ◽  
The Impact ◽  
Econometric Technique

The article analyses a causal relationship between trade openness and economic growth for the member countries of BRICS by using an econometric technique of time series analysis. Member countries of BRICS adopted a series of liberalization reforms, almost simultaneously, from the late 1980s. The article attempts to study the impact of trade openness on their growth in GDP per capita. It captures structural composition of GDP and openness of trade in four aspects, that is, merchandise exports, merchandise imports, services export and services import. In India, the study found growth-led trade in services hypothesis. The article supports the growth-led export and growth-led import hypothesis for China and export- and import-led growth for South Africa. However, no causal relationship was evident for Brazil and Russia. JEL Codes: F43, C22

The Environmental Kuznets Curve

2017 ◽  
Author(s):  
David I. Stern
Keyword(s):  
Economic Growth ◽  
Environmental Impacts ◽  
Environmental Kuznets Curve ◽  
Human Impacts ◽  
Developed Countries ◽  
Environmental Problems ◽  
Gdp Per Capita ◽  
Kuznets Curve ◽  
Per Capita ◽  
The Impact

The environmental Kuznets curve (EKC) is a hypothesized relationship between environmental degradation and GDP per capita. In the early stages of economic growth, pollution emissions and other human impacts on the environment increase, but beyond some level of GDP per capita (which varies for different indicators), the trend reverses, so that at high income levels, economic growth leads to environmental improvement. This implies that environmental impacts or emissions per capita are an inverted U-shaped function of GDP per capita. The EKC has been the dominant approach among economists to modeling ambient pollution concentrations and aggregate emissions since Grossman and Krueger introduced it in 1991 and is even found in introductory economics textbooks. Despite this, the EKC was criticized almost from the start on statistical and policy grounds, and debate continues. While concentrations and also emissions of some local pollutants, such as sulfur dioxide, have clearly declined in developed countries in recent decades, evidence for other pollutants, such as carbon dioxide, is much weaker. Initially, many understood the EKC to imply that environmental problems might be due to a lack of sufficient economic development, rather than the reverse, as was conventionally thought. This alarmed others because a simplistic policy prescription based on this idea, while perhaps addressing some issues like deforestation or local air pollution, could exacerbate environmental problems like climate change. Additionally, many of the econometric studies that supported the EKC were found to be statistically fragile. Some more recent research integrates the EKC with alternative approaches and finds that the relation between environmental impacts and development is subtler than the simple picture painted by the EKC. This research shows that usually, growth in the scale of the economy increases environmental impacts, all else held constant. However, the impact of growth might decline as countries get richer, and richer countries are likely to make more rapid progress in reducing environmental impacts. Finally, there is often convergence among countries, so that countries that have relatively high levels of impacts reduce them more quickly or increase them more slowly, all else held constant.

scholarly journals PERTUMBUHAN PENDUDUK, INFLASI DAN KORUPSI: ANALISIS EMPIRIS ENVIRONMENTAL KUZNETS CURVE (EKC) DI KAWASAN ASEAN PERIODE 2002-2016

2019 ◽  
Vol 1 (3) ◽  
pp. 71
Author(s):  
Muhammad Fajri Setia Trianto ◽  
Evi Yulia Purwanti
Keyword(s):  
Economic Growth ◽  
Population Growth ◽  
Co2 Emissions ◽  
Environmental Kuznets Curve ◽  
Secondary Data ◽  
Gdp Per Capita ◽  
Environmental Damage ◽  
Kuznets Curve ◽  
Per Capita ◽  
The Impact

The economy that continues to grow has the impact of environmental damage. This study aims to prove empirically the Environmental Kuznets Curve (EKC) hypothesis by analyzing the relationship of economic growth with environmental damage as measured by GDP per capita, and CO2 emissions. The data used are secondary data in the form of data on GDP per capita, CO2 emissions, population growth, inflation, and control of corruption in 10 countries in the ASEAN region in 2002-2016. Data analysis using the Fixed Effect model. The results show that there is a relationship between economic growth and environmental damage that forms an inverted U curve. Economic growth will initially have a positive effect on environmental damage so that at a point of economic growth negatively affects environmental damage. By adding control variables: population growth, inflation and corruption, inflation and corruption positively impact environmental damage, while population negatively affect environmental damage.

The long run impact of immigration on labor market in an advanced economy

2015 ◽  
Vol 42 (4) ◽  
pp. 356-367
Author(s):  
Faridul Islam ◽  
Saleheen Khan
Keyword(s):  
Labor Market ◽  
Gdp Per Capita ◽  
Advanced Economy ◽  
Content Type ◽  
Dynamic Relationship ◽  
Long Run ◽  
The Usa ◽  
Short Run ◽  
Per Capita ◽  
The Impact

Purpose – The purpose of this paper is to examine the dynamic relationship among immigration rate, GDP per capita, and and real wage rates in the USA. Design/methodology/approach – The paper implements the Johansen-Juselius (1990, 1992) cointegration technique to test for a long-run relationship; and for short-run dynamics the authors apply Granger causality tests under the vector error-correction model. Findings – The results show that the long-run causality runs from GDP per capita to immigration, not vice versa. Growing economy attracts immigrants. The authors also find that immigration flow depresses average weekly earnings of the natives in the long-run. Originality/value – The authors are not aware of any study on the USA addressing the impact of immigrants on labor market using a tripartite approach by explicitly incorporating economic growth. It is therefore important to pursue a theoretically justified empirical model in search of a relation to resolve on apparent immigration debate.

scholarly journals The influence of demographic factors on the economic development of the Azerbaijan: the interconnection problem

2020 ◽  
Vol 10 (2) ◽  
Author(s):  
Saleh Nagiyev
Keyword(s):  
Economic Growth ◽  
Growth Rate ◽  
Economic Development ◽  
18Th Century ◽  
Demographic Factors ◽  
Gdp Per Capita ◽  
Gdp Growth ◽  
World Population ◽  
Per Capita ◽  
The Impact

Demographic factors have sometimes occupied center-stage in the discussion of the sources of economic growth. In the 18th century, Thomas Malthus made the pessimistic forecast that GDP growth per capita would fall due to a continued rapid increase in world population. There is a straightforward accounting relationship when identifying the sources of economic growth: Growth Rate of GDP = Growth Rate of Population + Growth Rate of GDP per capita, where GDP per capita is simply GDP divided by population. This article examines the interconnection between economic development and the demographic policy of Azerbaijan. The article analyzes various approaches of the impact of demographic factors on the economic development of a country. The following demographic factors have been identified and described as significant for the economic development: fertility dynamics, mortality dynamics, population size and gender and age structure.

Five-party Latvian government may not last full term

2019 ◽  
Keyword(s):  
Economic Growth ◽  
Prime Minister ◽  
Full Term ◽  
Think Tanks ◽  
Gdp Per Capita ◽  
Content Type ◽  
Per Capita ◽  
The Eu

Subject Latvia’s new government. Significance Elections in October followed the recent European trend of producing a particularly fractured parliament. With seven of the 16 competing parties winning seats, negotiations on forming a governing coalition were complicated. Prime Minister Krisjanis Karins’s administration took office on January 23, more than 100 days after the election. Impacts With economic growth moderating to 3.1% from 4.7% in 2018, Latvia’s GDP per capita ranking (23rd in the EU in 2017) will continue to lag. A dearth of think tanks and policy units means a lack of ideas about how to generate faster growth and stem demographic decline. Failure to find solutions to Latvia’s problems will lead to yet more popular disenchantment.

Indo-Pacific Economic Architecture: An ASEAN Perspective

2019 ◽  
Vol 113 ◽  
pp. 381-383
Author(s):  
Ronald Eberhard Tundang
Keyword(s):  
Economic Growth ◽  
Gross Domestic Product ◽  
Gdp Per Capita ◽  
The Third ◽  
The Pacific ◽  
The World ◽  
The Pacific Ocean ◽  
Per Capita ◽  
Trade Growth ◽  
Global Economic Growth

For over five decades, countries in Southeast Asia and its surroundings in Asia, the Pacific Ocean, and Pacific Rim have enjoyed peace and stability, upon which economic growth and welfare have accumulated. The marvel of uninterrupted development has transformed them into a group of countries that are part of the engines of global economic growth. Over the period of 1967 until 2017, Southeast Asian region recorded growth in gross domestic product (GDP) per capita almost thirty-three times bigger, from USD 122 to USD 4,021. In 2016, the region represented 6.2 percent GDP of the world in 2016, almost doubled the share in 1967 at just 3.2 percent. The period also saw an immense trade growth from USD 9.7 billion to USD 2.2 trillion. Right now the region has become the third largest economy in Asia and the fifth largest in the world.

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