scholarly journals Military expenditure and economic growth: the case of India

2019 ◽  
Vol 5 (2) ◽  
pp. 116-135 ◽  
Author(s):  
Gouda Abdel-Khalek ◽  
Mohammed Gamal Mazloum ◽  
Mohammed Ramadan Mohammed El Zeiny
Keyword(s):  
Economic Growth ◽  
Time Series ◽  
Developed Countries ◽  
Military Expenditure ◽  
Content Type ◽  
Modeling Methodology ◽  
Industrial Sectors ◽  
Time Series Approach ◽  
The Impact ◽  
The Relationship

Purpose The relationship between military expenditure and economic growth is complex. The purpose of this paper is to examine this relationship in India. Design/methodology/approach The design of this study is descriptive in the theoretical part, and quantitative in the applied one. The study uses time series approach, and Hendry General-to-Specific (GTS) modeling methodology, to examine and analyze the relationship between military expenditure and economic growth in India, during the period 1980-2016. Findings The study shows the following: Absence of causal relationship between military expenditure and economic growth in India, during indicated period. The continuous regional tensions facing India represent the main factor for adopting Indian military strategy and emphasizing military capabilities. India has been able to build and develop links between civilian and military sectors. The Indian military scientific and manufacturing policies have achieved self-sufficiency in some of its military needs, a strong military industrial base and high levels of military exports. India participated with developed countries in military strategic industries. Such participation contributed to the integration of civilian and military sectors. India gave rights to private sector and foreign direct investment (FDI) for manufacturing in military industries, giving full marketing rights to the Indian government. These new policies considered a great move toward deep changes for Indian military manufacturing policy. Social implications The findings shed light on the importance of stimulating links between civilian and military sectors, particularly in the industrial sectors and scientific activities. Originality/value This study has a contribution to literature of military expenditures' economic effects. Theoretically, this study tries to fill the research gap regarding the impact of military expenditure in Indian case. Furthermore, to the best of the authors' knowledge, this is the first study that examines the relationship between military expenditure and economic growth in India using Hendry general-to-specific (GTS) modeling methodology and time series approach.

The impact of project methodologies on project success in different project environments

2016 ◽  
Vol 9 (2) ◽  
pp. 364-388 ◽  
Author(s):  
Robert Joslin ◽  
Ralf Müller
Keyword(s):  
Project Success ◽  
Research Model ◽  
Content Type ◽  
Industrial Sectors ◽  
Project Environment ◽  
Project Governance ◽  
The Impact ◽  
Matching Techniques ◽  
The Relationship ◽  
Practical Implications

Purpose – The purpose of this paper is to qualitatively validate the constructs of a theoretically derived research model while gaining insights to steer the direction of a greater study on methodologies, their elements, and their impact on project success. In doing so, to investigate whether different project environments, notably project governance, impacts the relationship between methodologies and project success. Design/methodology/approach – A deductive approach was applied to validate a theoretically derived research model. In total, 19 interviews across 11 industrial sectors and four countries were used to collect data. Pattern-matching techniques were utilized in the analysis to deductively validate the research model. Findings – There is a positive relationship between project methodology elements and the characteristics of project success; however, environmental factors, notably project governance, influence the use and effectiveness of a project methodology and its elements with a resulting impact on the characteristics of project success. Research limitations/implications – Project governance plays a major role in the moderating effect of a project methodology’s effectiveness. Contingency theory is applicable to a project’s methodology’s selection and its customization according to the project environment. Practical implications – Understand the impact of project methodologies and their elements on the characteristics of project success while being moderated by the project environment, for example, the risk of suboptimal project performance due to the effectiveness of methodology elements being negatively impacted by the project environment. Originality/value – The impact of a project methodology (collection of heterogeneous-related elements) on the characteristics of project success is identified while being moderated by the project environment, notably project governance.

Does investment in innovation impact firm performance in emerging economies? An empirical investigation of the Indian food and agricultural manufacturing industry

2021 ◽  
Vol 13 (2) ◽  
pp. 233-248
Author(s):  
Manogna R.L. ◽  
Aswini Kumar Mishra
Keyword(s):  
Firm Performance ◽  
Manufacturing Industry ◽  
Emerging Market ◽  
Developed Countries ◽  
Emerging Economy ◽  
Content Type ◽  
Agricultural Industry ◽  
Indian Food ◽  
The Impact ◽  
The Relationship

Purpose The study aims to analyze the impact of Research & Development (R&D) intensity on the firm’s performance, measured by growth of sales in the emerging market like India. Innovation strategy and its outcomes for firms may be different in developing countries as compared to developed countries. Thus, a study that focuses on the emerging economy like India, with a majority of the population dependent on agriculture, is of prime importance to the firm performance in the food and agricultural manufacturing industry. For this study, the broader focus will be on one widely recognised factor which may influence the growth rate of firms, i.e. investment in innovations which is in terms of R&D expenditure. Design/methodology/approach The paper investigates the relationship between the R&D efforts and growth of firms in the Indian food and agricultural manufacturing industry during 2001–2019. To empirically test the relationship between firm’s growth (FG) and R&D investments, system generalised method of moments technique has been used, hence enabling to avoid problems related to endogeneity and simultaneity. Findings The findings reveal that investments in innovations have a positive effect on the growth of firms in the Indian food and agricultural manufacturing industry. Investment in R&D also enables the firms to reap benefits from externalities present in the industry. Further analysis reveals that younger firms grow faster when they invest in R&D. More specifically, this paper finds evidence in the case of the food and agricultural industry that import of raw materials negatively affects the FG and export intensity positively affects the growth in the case of R&D firms. Research limitations/implications This study suggests that the government should encourage the industries to invest optimally in R&D projects by providing favourable fiscal treatments and R&D subsidies which are observed to have positive effects in various developed countries. Originality/value To the best of the author’s knowledge, the current paper is the first to analyse the impact of innovation in food and agricultural industry on firm’s performance in an emerging economy context with the latest data. This paper agrees that a government initiative to increase private R&D expenditure would have favourable effects on FG as growing investments in R&D lead to further growth of the firms.

scholarly journals Are some taxes better for growth in Pakistan? A time series analysis

2018 ◽  
Vol 45 (10) ◽  
pp. 1439-1452 ◽  
Author(s):  
Kashif Munir ◽  
Maryam Sultan
Keyword(s):  
Economic Growth ◽  
Time Series ◽  
International Trade ◽  
Sales Tax ◽  
Tax Base ◽  
Content Type ◽  
Long Run ◽  
Indirect Taxes ◽  
Short Run ◽  
The Impact

Purpose The purpose of this paper is to analyze the impact of taxes on economic growth in the long run as well as in the short run. Design/methodology/approach The study uses simple time series model, where real GDP is dependent variable and different forms of taxes are explanatory variables under ARDL framework from 1976 to 2014 at annual frequency for Pakistan. Findings Direct taxes have positive relation with economic growth in the long run. Sales tax, tax on international trade (tariffs) and other indirect taxes have positive impact on economic growth of Pakistan in the long run as well as in the short run. However, sales tax and other indirect taxes impact negatively on economic growth in the short run after one year because people realize decline in their real income. Practical implications Government should increase direct taxes by increasing tax base. Indirect taxes usually indicate negative impact after one and two years; therefore, government should decrease its reliance on indirect taxes. Government should promote tax awareness among the people which increase the tax morale of people and increase the tax base. Originality/value Taxes are disaggregated into direct and indirect taxes, while indirect taxes have been further disaggregated into excise duty, sales tax, surcharges, tax on international trade and other indirect taxes. This study provides useful insight for policy makers in designing taxes and their effect on growth.

Innovation, institutions and economic growth in sub-Saharan Africa – an IV estimation of a panel threshold model

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Joseph Ato Forson ◽  
Rosemary Afrakomah Opoku ◽  
Michael Owusu Appiah ◽  
Evans Kyeremeh ◽  
Ibrahim Anyass Ahmed ◽  
...  
Keyword(s):  
Economic Growth ◽  
Developing Economies ◽  
Innovation Policy ◽  
Threshold Model ◽  
Sub Saharan Africa ◽  
Content Type ◽  
Panel Regressions ◽  
Sub Saharan ◽  
The Impact ◽  
The Relationship

PurposeThe significant impact of innovation in stimulating economic growth cannot be overemphasized, more importantly from policy perspective. For this reason, the relationship between innovation and economic growth in developing economies such as the ones in Africa has remained topical. Yet, innovation as a concept is multi-dimensional and cannot be measured by just one single variable. With hindsight of the traditional measures of innovation in literature, we augment it with the number of scientific journals published in the region to enrich this discourse.Design/methodology/approachWe focus on an approach that explores innovation policy qualitatively from various policy documents of selected countries in the region from three policy perspectives (i.e. institutional framework, financing and diffusion and interaction). We further investigate whether innovation as perceived differently is important for economic growth in 25 economies in sub-Saharan Africa over the period 1990–2016. Instrumental variable estimation of a threshold regression is used to capture the contributions of innovation as a multi-dimensional concept on economic growth, while dealing with endogeneity between the regressors and error term.FindingsThe results from both traditional panel regressions and IV panel threshold regressions show a positive relationship between innovation and economic growth, although the impact seems negligible. Institutional quality dampens innovation among low-regime economies, and the relation is persistent regardless of when the focus is on aggregate or decomposed institutional factors. The impact of innovation on economic growth in most regressions is robust to different dimensions of innovation. Yet, the coefficients of the innovation variables in the two regimes are quite dissimilar. While most countries in the region have offered financial support in the form of budgetary allocations to strengthen institutions, barriers to the design and implementation of innovation policies may be responsible for the sluggish contribution of innovation to the growth pattern of the region.Originality/valueSegregating economies of Africa into two distinct regimes based on a threshold of investment in education as a share of GDP in order to understand the relationship between innovation and economic growth is quite novel. This lends credence to the fact that innovation as a multifaceted concept does not take place by chance – it is carefully planned. We have enriched the discourse of innovation and thus helped in deepening understanding on this contentious subject.

The impact of foreign capital inflows on economic growth and employment in Egypt

2019 ◽  
Vol 36 (3) ◽  
pp. 258-276
Author(s):  
Hanan AbdelKhalik Abouelfarag ◽  
Mohamed Sayed Abed
Keyword(s):  
Economic Growth ◽  
Time Series ◽  
Foreign Investment ◽  
External Debt ◽  
Capital Inflows ◽  
Aggregate Model ◽  
Employment Level ◽  
Content Type ◽  
Foreign Capital Inflows ◽  
The Impact

Purpose The purpose of this paper is to trace the effects of both foreign direct investment (FDI) and external debt on economic growth and employment in Egypt over the 1985–2014 period. Design/methodology/approach The empirical analysis includes three stages: an aggregate time series analysis, a panel model that includes six economic sectors and a set of single-sector models. The “autoregressive distributed lag” approach is utilized either in the time series or in the panel models. Findings The empirical results of this research reveal that foreign investment exerts a weak positive effect on economic growth and employment in Egypt. External debt exerts an insignificant effect on economic growth and employment in the aggregate model. The sectoral analysis reveals that the effect varies greatly between sectors; the effect of FDI on output is positive in the financial, tourism and other service sectors, while it is insignificant in the agricultural, construction and manufacturing sectors. Practical implications It is important not to depend on external debt as an easy way to obtain capital. Greater efforts should be exerted to increase the absorptive capacity of the Egyptian economy so as to benefit from the positive spillover effect of foreign investment as much as possible. Originality/value With respect to Egypt, very limited studies have focussed on the role of external debt on growth and that of FDI and external debt on the employment level. There is no general agreement concerning the effect of FDI on economic growth. Therefore, this research explores the effect of FDI and external debt on the Egyptian economy utilizing both aggregate and sectoral data.

scholarly journals The human capital–economic growth nexus in SSA countries: what can strengthen the relationship?

2020 ◽  
Vol 47 (9) ◽  
pp. 1143-1159
Author(s):  
Roseline Tapuwa Karambakuwa ◽  
Ronney Ncwadi ◽  
Andrew Phiri
Keyword(s):  
Economic Growth ◽  
Human Capital ◽  
Least Squares ◽  
Ordinary Least Squares ◽  
African Countries ◽  
Content Type ◽  
Econometric Approach ◽  
The Impact ◽  
The Relationship ◽  
Ssa Countries

PurposeThe purpose of this study is to examine the impact of human capital on economic growth for a selected sample of nine SSA countries between 1980 and 2014 using a panel econometric approach.Design/methodology/approachThe authors estimate a log-linearized endogenous using the fully modified ordinary least squares (FMOLS) and the dynamic ordinary least squares (POLS) applied to our panel data time series.FindingsThe empirical analysis shows an insignificant effect of human capital on economic growth for our selected sample. These findings remain unchanged even after adding interactive terms to human capital, which are representatives of government spending as well as foreign direct investment. Nevertheless, the authors establish a positive and significant effect of the interactive term between urbanization and human capital on economic growth.Practical implicationsThe results emphasize the need for African policymakers to develop urbanized, “smart”, technologically driven cities within the SSA region as a platform toward strengthening the impact of human capital-economic growth relationship.Originality/valueThis study becomes the first in the literature to validate the human capital–urbanization–growth relationship for African countries.

Influence of systemic banking crisis and currency crisis on the relationship of export and economic growth

2017 ◽  
Vol 10 (1) ◽  
pp. 82-110
Author(s):  
Syed Ali Raza ◽  
Mohd Zaini Abd Karim
Keyword(s):  
Economic Growth ◽  
Time Series ◽  
Financial Crises ◽  
Currency Crises ◽  
Time Series Data ◽  
Banking Crises ◽  
Series Data ◽  
Content Type ◽  
Relationship Of ◽  
The Relationship

Purpose This study aims to investigate the influence of systemic banking crises, currency crises and global financial crisis on the relationship between export and economic growth in China by using the annual time series data from the period of 1972 to 2014. Design/methodology/approach The Johansen and Jeuuselius’ cointegration, auto regressive distributed lag bound testing cointegration, Gregory and Hansen’s cointegration and pooled ordinary least square techniques with error correction model have been used. Findings Results indicate the positive and significant effect of export of goods and services on economic growth in both long and short run, whereas the negative influence of systemic banking crises and currency crises over economic growth is observed. It is also concluded that the impact of export of goods and service on economic growth becomes insignificant in the presence of systemic banking crises and currency crises. The currency crises effect the influence of export on economic growth to a higher extent compared to systemic banking crises. Surprisingly, the export in the period of global financial crises has a positive and significant influence over economic growth in China, which conclude that the global financial crises did not drastically affect the export-growth nexus. Originality/value This paper makes a unique contribution to the literature with reference to China, being a pioneering attempt to investigate the effects of systemic banking crises and currency crises on the relationship of export and economic growth by using long-time series data and applying more rigorous econometric techniques.

The mediation role of public governance in the relationship between entrepreneurship and economic growth

2019 ◽  
Vol 16 (3) ◽  
pp. 316-333
Author(s):  
Allam Mohammed Hamdan ◽  
Reem Khamis ◽  
Ammar Abdulla Al Hawaj ◽  
Elisabetta Barone
Keyword(s):  
Economic Growth ◽  
United Arab Emirates ◽  
Entrepreneurial Activity ◽  
Public Governance ◽  
Content Type ◽  
National Economic ◽  
Oil Revenues ◽  
The Impact ◽  
The Relationship

Purpose The purpose of this paper is to investigate the mediation role of public governance in the relationship between entrepreneurship and economic growth in the United Arab Emirates (UAE). Design/methodology/approach To achieve this aim, the study uses a 20-year time series analysis (1996–2015) and tests the effect of entrepreneurship on economic growth, through public governance, via a mediator model. Findings The study has determined that public governance buoys the positive effect that entrepreneurship activities exert on economic growth in the UAE. Based on this determination, the study posits a set of recommendations that focus on supporting entrepreneurship activities that play a significant role in economic growth. Originality/value The study adds to the literature on the impact of entrepreneurship on economies dependent on oil revenues vis-à-vis a public policy perspective. The study provides insights into the type of entrepreneurship that most efficaciously suits the Emirati social and cultural milieu in terms of fostering national economic growth. In addition, the study limns a vision of the role of public governance in creating an enabling environment that stimulates entrepreneurial activity and, in turn, increases economic growth in the Emirates.

FDI and economic growth: empirical evidence from Pakistan

2016 ◽  
Vol 32 (1) ◽  
pp. 63-76 ◽  
Author(s):  
Naqeeb Ur Rehman
Keyword(s):  
Economic Growth ◽  
Time Series ◽  
Human Capital ◽  
Time Series Data ◽  
Negative Relationship ◽  
Series Data ◽  
Literacy Rate ◽  
Content Type ◽  
Low Level ◽  
The Relationship

Purpose – The purpose of this paper is to investigate the relationship between FDI and economic growth. Two models have been used to analyse the time series data on Pakistan from 1970 to 2012. This paper contributes to the existing literature by examining the different empirical methods to estimate the relationship between FDI and economic growth. The vector error correction model (VECM) results suggest that FDI depends on the economic growth but this relationship is not true vice versa. The second model showed that FDI, human capital and exports are important factors of economic growth. However, the negative relationship between interactive variables (FDI and human capital) and economic growth indicates that low level of human capital affect the economic growth of Pakistan. Design/methodology/approach – Used time series data (1970-2012) for empirical analysis. Findings – The VECM results suggest that FDI depends on the economic growth but this relationship is not true vice versa. The second model showed that FDI, human capital and exports are important factors of economic growth. However, the negative relationship between interactive variables (FDI and human capital) and economic growth indicates that low level of human capital affect the economic growth of Pakistan. Research limitations/implications – The limitations of this empirical paper are as follows: it would be better to use secondary school enrolment (per cent) to measure human capital instead adult literacy rate. Similarly, the non-availability of R & D data on Pakistan limited the scope of the paper to measure the role of absorptive capacity of domestic and its relationship with FDI. The results of this paper are specifically related to Pakistan and cannot be generalized to other countries. Practical implications – This empirical study implies that Pakistan should improve its economic growth. The robust policies are required to increase the literacy rate of the country. Higher human capital will attract more FDI into the economy and may reduce the unemployment. This would increase the national output of the country and their national income level. Presently, Pakistan is going through war on terror and foreign firms are reluctant to invest. A stable and secure business environment will ultimately inject foreign direct investment into Pakistan. Originality/value – This paper is first time analyse the time series data to explore the relationship between FDI and economic growth. A new approach has been used called VECM.

Emerging markets: the impact of ICT on the economy and society

2017 ◽  
Vol 19 (5) ◽  
pp. 383-396 ◽  
Author(s):  
Shahram Amiri ◽  
Joseph M. Woodside
Keyword(s):  
Economic Growth ◽  
Communication Technology ◽  
Technology Development ◽  
Significant Negative Correlation ◽  
Technological Advancement ◽  
Content Type ◽  
Bric Countries ◽  
Employment Trends ◽  
The Impact ◽  
The Relationship

Purpose The purpose of this research is to quantifiably measure the relationship between technological advancement, economic growth and societal employment trends across the Brazil, Russia, India and China (BRIC) countries, while also describing various government initiatives and policy steps taken to promote technology development. Design/methodology/approach This paper examines the relationship between the United Nations’ International Telecommunication Union’s Information and Communication Technology (ICT) development Index (IDI), gross domestic product (GDP) and unemployment data. The paper also reviews the broadband and e-readiness components of each BRIC nation to further describe the policies in adoption of ICT. Findings This research concludes that there is in fact a significant positive correlation between technology (as measured by IDI) and economy (as measured by a nation’s GDP) and there is a significant negative correlation between technology (as measured by IDI) and a nation’s unemployment rate benefiting the society. Originality/value This research seeks to describe the impact of Information Communication Technology on economic and society indices in BRIC. Paper contributions include an empirical measurement and relationship between technological advancement, economic growth and employment trends across the BRIC countries, while also describing various government policy initiatives taken to promote technology.

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