scholarly journals The Impact of Financial Development on Economic Growth as Countries Develop Financially and Economically: WAEMU Countries Case

2018 ◽  
Vol 5 (5) ◽  
pp. 83
Author(s):  
Daouda Coulibaly
Keyword(s):  
Financial Development ◽  
West African ◽  
Seemingly Unrelated Regression ◽  
Per Capita Gdp ◽  
Real Gdp ◽  
Unrelated Regression ◽  
Cointegration Tests ◽  
Real Gdp Per Capita ◽  
Per Capita ◽  
The Impact

We analyse financial development’s impact on real gross domestic product per capita in seven West African Economic and Monetary Union (WAEMU) countries from 1970 to 2014. We assume that income and financial development process converge to USA, France and Japan’s levels respectively. An analysis of the unit root and cointegration tests revealed non-stationary and cointegrated series. Estimates are based on the Dynamic Seemingly Unrelated Regression method (DSUR). Our study shows that, (i) the effect of financial development on real per capita GDP improves in WAEMU countries as the latter converge financially to their respective levels in USA, France and Japan; (ii) the effect of financial development on real GDP per capita decreases in the WAEMU countries as they grow economically to reach USA, France and Japan’s income levels; (iii) the degree of the effect of financial development on real per capita GDP in the case of financial systems is stronger than that of the convergence of income.

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 Analysis of Income per Capita Convergence on ASEAN Plus Three (APT) Countries

2017 ◽  
Vol 1 (1) ◽  
pp. 51
Author(s):  
Any Fatiwetunusa ◽  
Syamsurijal Syamsurijal ◽  
Sa’adah Yuliana
Keyword(s):  
Absolute Convergence ◽  
Value Added ◽  
Gdp Per Capita ◽  
Conditional Convergence ◽  
Income Per Capita ◽  
Real Gdp ◽  
Real Gdp Per Capita ◽  
Per Capita ◽  
Convergence Model ◽  
The Impact

The main objective of this study is to test the convergence of income per capita in APT countries through three models: absolute convergence, conditional convergence and sigma convergence. Regression analysis of panel data from 13 APT countries during the period of 2001-2014 is used to analysed to study problem. In absolute convergence model, the growth of real GDP per capita and initial real GDP are used as the variables, meanwhile, 8 variables such as the growth of real GPD per capita, initial real GDP per capita, labor force ratio, value added in agricultural sector, value added in industrial sector, terms of trade, foreign direct investment and internet users ratio are analyzed in conditional convergence model. According to the Solow model, the economies of the countries will converge in which the growth of income per capita of developing countries will be higher than those of developed countries. The economies will be convergent if the countries tend to move to a similar steady state resulting in smaller gap between the countries. Based on the results of absolute convergence and conditional convergence models, APT countries is converging with the rate of 2% and 2.2%. This is consistent with the results of sigma convergence model that shows a declining trend in the dispersion of real GDP per capita in APT regions. The growth of real GDP per capita is influenced by initial GDP per capita, labor force ratio, value added in agricultural sector, value added in industrial sector, terms of trade, foreign direct investment and internet users ratio. Developed countries such as Singapore, Brunei Darussalam and South Korea experience the impact of high real GDP per capita growth. On the contrary, Indonesia, Laos, Vietnam and The Phillipines undergo the impact of low GDP per capita growth.

scholarly journals Exploring the Impact of Healthcare on Economic Growth in Africa

2019 ◽  
Vol 6 (3) ◽  
pp. 45
Author(s):  
Juste Somé ◽  
Selsah Pasali ◽  
Martin Kaboine
Keyword(s):  
Economic Growth ◽  
Life Expectancy ◽  
Health Outcomes ◽  
Health Expenditures ◽  
Gdp Per Capita ◽  
Real Gdp ◽  
Cent Increase ◽  
Real Gdp Per Capita ◽  
Per Capita ◽  
The Impact

This paper empirically investigates the relationship between health expenditures, health outcomes and economic growth in Africa using data from 48 African countries over the period 2000-2015 in a panel data regression framework. In line with wider literature on economic growth as well as health economics, the paper first finds that maternal, infant and child mortality rates are all negatively and significantly associated with economic growth in Africa. In addition, life expectancy at birth is positively associated with economic growth. A 9.4-year increase in life expectancy leads to 1 per cent increase in real GDP per capita. Second, the paper finds that health expenditures have direct and indirect effects on economic growth that are positive and economically meaningful. In particular, a 10 per cent increase in health expenditures leads to an increase in annual average real GDP per capita by 0.24 per cent. Third, education emerges as a strong determinant of both economic growth and health outcomes in Africa, particularly when female education is considered. The main policy implication of this paper is that governments should aim at spending more and efficiently on the overall health system to progress over health outcomes and benefit from the positive externalities leading to economic growth. In addition, it is crucial that governments partner with private sector for resource mobilization and effective service delivery.

scholarly journals Government Spending and Real Exchange Rate Case of Albania

2013 ◽  
Vol 2 (4) ◽  
pp. 303 ◽  
Author(s):  
Edmira Cakrani ◽  
Pranvera Resulaj ◽  
Luciana Koprencka (Kabello)
Keyword(s):  
Exchange Rate ◽  
Real Exchange Rate ◽  
Unit Root ◽  
Direct Investment ◽  
Gdp Per Capita ◽  
Explanatory Variables ◽  
Real Gdp ◽  
Real Gdp Per Capita ◽  
Per Capita ◽  
The Impact

Various studies have found that governmentspending can lead to overestimation orunderestimation of the real exchange rate, depending on the composition of theseexpenditures. The purpose of this paper is toassess the impact of government spendingon real exchange rate in Albania. In this paper is used a log liner model with quarterlydata. Other explanatory variables in this model are: foreign direct investment, remittances,real GDP per capita, openness. Variables are tested for unit root and cointegration. Theresults indicate that government spendingis associated with overvaluation of realexchange rate in Albania.JEL Classification: E62; F31Various studies have found that governmentspending can lead to overestimation orunderestimation of the real exchange rate, depending on the composition of theseexpenditures. The purpose of this paper is toassess the impact of government spendingon real exchange rate in Albania. In this paper is used a log liner model with quarterlydata. Other explanatory variables in this model are: foreign direct investment, remittances,real GDP per capita, openness. Variables are tested for unit root and cointegration. Theresults indicate that government spendingis associated with overvaluation of realexchange rate in Albania.

scholarly journals The Analysis of Income per Capita Convergence on ASEAN Plus Three (APT) Countries

2017 ◽  
Vol 1 (1) ◽  
pp. 51
Author(s):  
Any Fatiwetunusa ◽  
Syamsurijal Syamsurijal ◽  
Sa’adah Yuliana
Keyword(s):  
Absolute Convergence ◽  
Value Added ◽  
Gdp Per Capita ◽  
Conditional Convergence ◽  
Income Per Capita ◽  
Real Gdp ◽  
Real Gdp Per Capita ◽  
Per Capita ◽  
Convergence Model ◽  
The Impact

The main objective of this study is to test the convergence of income per capita in APT countries through three models: absolute convergence, conditional convergence and sigma convergence. Regression analysis of panel data from 13 APT countries during the period of 2001-2014 is used to analysed to study problem. In absolute convergence model, the growth of real GDP per capita and initial real GDP are used as the variables, meanwhile, 8 variables such as the growth of real GPD per capita, initial real GDP per capita, labor force ratio, value added in agricultural sector, value added in industrial sector, terms of trade, foreign direct investment and internet users ratio are analyzed in conditional convergence model. According to the Solow model, the economies of the countries will converge in which the growth of income per capita of developing countries will be higher than those of developed countries. The economies will be convergent if the countries tend to move to a similar steady state resulting in smaller gap between the countries. Based on the results of absolute convergence and conditional convergence models, APT countries is converging with the rate of 2% and 2.2%. This is consistent with the results of sigma convergence model that shows a declining trend in the dispersion of real GDP per capita in APT regions. The growth of real GDP per capita is influenced by initial GDP per capita, labor force ratio, value added in agricultural sector, value added in industrial sector, terms of trade, foreign direct investment and internet users ratio. Developed countries such as Singapore, Brunei Darussalam and South Korea experience the impact of high real GDP per capita growth. On the contrary, Indonesia, Laos, Vietnam and The Phillipines undergo the impact of low GDP per capita growth.

Does financial development accelerate economic growth?

2018 ◽  
Vol 10 (3) ◽  
pp. 426-435 ◽  
Author(s):  
Besnik Taip Fetai
Keyword(s):  
Economic Growth ◽  
Financial Development ◽  
Russian Federation ◽  
Central Banks ◽  
European Countries ◽  
Gdp Per Capita ◽  
Content Type ◽  
Real Gdp ◽  
Real Gdp Per Capita ◽  
Per Capita

Purpose This study aims to empirically explore whether there is causality and in which direction, i.e. whether financial development generates economic growth or whether financial development merely follows economic growth in transition European countries, including Russian Federation and Turkey, during 1998-2015. Design/methodology/approach The study uses different techniques such as pooled OLS, fixed and random effects and the Hausman–Taylor model with instrumental variables. Findings The regression results show a positive relationship between financial development indicators and real GDP per capita growth, thus supporting the hypothesis that finance leads economic growth. The result also shows that financial crisis has a negative effect on real GDP per capita growth. Furthermore, these findings show that government spending and inflation have a negative impact on real GDP per capita growth. The study also shows that financial development plays growth-supporting role in real GDP per capita growth in 20 European countries in transition, including Russian Federation and Turkey. Practical implications As financial development generates real GDP per capita growth, on the basis of the results of the study, a course of action that involves institutional improvement and incentivizing competition in the financial sector is recommended to the Central Banks’ policymakers in transition economies. These will in turn lead to higher real GDP per capita growth. Originality/value The study is original in nature and makes effort to promote financial development in transition European countries, including Russian Federation and Turkey. The findings of this study will be of value to Central Banks and other policymakers.

Globalisation and Patents: A Study of Patents filed by India

2014 ◽  
Vol 1 (2) ◽  
Author(s):  
K. V. Bhanu Murthy ◽  
Tausheef Alam
Keyword(s):  
Regression Models ◽  
Gdp Per Capita ◽  
Significant Determinant ◽  
Real Gdp ◽  
Real Gdp Per Capita ◽  
Per Capita ◽  
The Impact ◽  
Patent Filing

This paper studies the impact of globalisation on Indian patents. An attempt is made to analyse the impact of globalisation on patent filings by Indian citizens from 1993 to 2011. Using semi-log and double-log regression models, we study the impact of FDI, GDP and R&D expenditure on patent filings by Indians. Our results show that real GDP per capita is a significant determinant of FDI; an increase in GDP per capita by 1% leads to an increase in patents filed by 0.72%. FDI is not a significant determinant of patents filed, implying that the notion that globalisation leads to increase in patent filing does not hold good in the Indian case.

scholarly journals Nonlinear growth effect of remittances in recipient countries: an econometric analysis of remittances-growth nexus in Bangladesh

2016 ◽  
Author(s):  
Gazi Mainul Hassan ◽  
Shamim Shakur
Keyword(s):  
Financial Development ◽  
Econometric Analysis ◽  
Growth Effect ◽  
Gdp Growth ◽  
Per Capita Gdp ◽  
Nonlinear Growth ◽  
Migrant Families ◽  
Per Capita ◽  
In The Beginning ◽  
The Impact

The paper examines the impact of inward remittances flows on per capita GDP growth in Bangladesh during 1976-2012. We find that the growth effect of remittances is negative at first but becomes positive at a later stage, an evidence of a non-linear. Unproductive use of remittances was rampant in the beginning when they were received by migrant families but better social and economic investments led to more productive utilisation of remittances receipts at later periods. This was the possible mechanism behind the U-shaped relationship. Unlike what is suggested in the literature that the effect of remittances is more pronounced in a less financially developed economy, our evidence do not show that the effect of remittances on per capita GDP growth in Bangladesh is conditional on the level of financial development.

Long Run Money Neutrality: The Case of Guatemala

2005 ◽  
pp. 127-138 ◽  
Author(s):  
Frederick H. Wallace
Keyword(s):  
Neutrality Test ◽  
Per Capita Gdp ◽  
Real Gdp ◽  
Long Run ◽  
Per Capita

The Fisher and Seater (1993) methodology is used to test for the long run neutrality of money in Guatemala, 1950-2001. Real GDP, real per capita GDP, and the money measures, M1 and M2, are integrated of order one [1(1)]. Given these orders of integration, the Fisher-Seater neutrality test can be applied. The evidence suggests that M1 and M2 are neutral with respect to real GDP. Furthermore, the test indicates that M1, but not M2, is neutral with respect to real per capita GDP as well.

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