GLOBALIZATION AND ECONOMIC GROWTH IN CAMBODIA

2017 ◽  
Vol 62 (02) ◽  
pp. 363-375 ◽  
Author(s):  
JAI S. MAH
Keyword(s):  
Economic Growth ◽  
International Trade ◽  
Error Correction ◽  
Small Sample ◽  
Error Correction Models ◽  
Fdi Inflows ◽  
Rapid Economic Growth ◽  
Long Run ◽  
Equilibrium Relationship ◽  
Cointegration Tests

For the past two decades, since the political situation became stable, Cambodia has recorded a very rapid economic growth rate. In the meantime, globalization has progressed both in terms of the expansion of international trade and foreign direct investment (FDI) inflows. This paper applies small sample cointegration tests and error correction models to reveal the determinants of Cambodia’s rapid economic growth. The cointegration test results support the existence of a long-run equilibrium relationship among the variables concerned. The error-correction models show that expansion of international trade values has caused the rapid economic growth in Cambodia, regardless of the measure of international trade used.

scholarly journals TRADE AND GROWTH IN A NON‐RECOGNIZED SMALL ISLAND STATE: EVIDENCE FROM THE TURKISH REPUBLIC OF NORTHERN CYPRUS

2010 ◽  
Vol 11 (1) ◽  
pp. 112-130
Author(s):  
Salih Katircioglu
Keyword(s):  
Economic Growth ◽  
International Trade ◽  
Small Island ◽  
Long Run ◽  
Equilibrium Relationship ◽  
Island State ◽  
Northern Cyprus ◽  
Small Island State ◽  
Growth Hypothesis ◽  
Long Run Equilibrium

This paper empirically investigates long‐run equilibrium relationship and causality between international trade and economic growth in North Cyprus, which has a non‐recognized state and suffers from the Cyprus problem for more than 40 years. Results reveal that long‐run equilibrium relationship exists between international trade variables (exports and imports of goods and services) and economic growth in this small island state. The present study also validates the existence of export‐led growth hypothesis in Northern Cyprus while it rejects the validity of import‐led growth hypothesis. Finally, this study has shown that Turkish Cypriots should improve not only services exports but also merchandise exports in to contribute to its economy further. Santrauka Straipsnyje, remiantis empiriniais duomenimis, tyrinejama ilgalaike pusiausvyra bei priežastinis ryšys tarp tarptautines prekybos ir ekonominio augimo Šiaures Kipre, kuris yra nepripažintas ir kenčia del šios politines problemos daugiau negu 40 metu. Empirinio tyrimo rezultatai leidžia teigti, kad tarp tarptautines prekybos rodikliu (prekiu ir paslaugu eksporto bei importo) bei ekonominio augimo šioje mažoje saloje vyrauja ilgalaike pusiausvyra. Tyrimas patvirtina hipoteze apie eksporto kaip ekonominio augimo veiksnio svarba, bet paneigia importo itaka nagrinejamos mažos šalies pletrai. Autorius ragina skatinti ne tik paslaugu, bet ir produkcijos eksporta norint pasiekti spartesni ekonomikos augimo masta Šiaures Kipre.

scholarly journals Foreign Direct Investment, Trade and Economic Growth: A New Paradigm of the BRICS

2015 ◽  
Vol 9 (12) ◽  
pp. 32 ◽  
Author(s):  
Akhilesh Chandra Prabhakar ◽  
Muhammad Azam ◽  
B. Bakhtyar ◽  
Yusnidah Ibrahim
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Regional Integration ◽  
Direct Investment ◽  
New Paradigm ◽  
Fdi Inflows ◽  
Long Run ◽  
Equilibrium Relationship ◽  
Development Context ◽  
Sustainable Equilibrium

<p class="zhengwen"><span lang="EN-GB">The present study begins by surveying broadly supports the assertion that regional integration in the case of the BRICS is not adequately paid attention except with very few original or significant contributions. This research examines the existing pattern in the areas of trade and investment with a view to locate in the development context. It was also essential to make a theoretical investigation on literature of trade along with the empirical one. The survey broadly supports the frequent, through usually undocumented, assertion that BRICS was an area had tended to neglect and to which they had made few if any original or significant contributions. Alongside, this study panel data on BRICSs, where the results confirm that foreign direct investment (FDI), trade and economic growth indicate the presence of long-run sustainable equilibrium relationship between them. It is thus important that policymakers to remove obstacles to FDI inflows and improve the respective absorptive capacity in order to reap maximize positive growth effects. This study also discussed that how China performed well through attracting FDI inflows and maintained trade balance. </span></p>

scholarly journals TRADE AND GROWTH IN A NON‐RECOGNIZED SMALL ISLAND STATE: EVIDENCE FROM THE TURKISH REPUBLIC OF NORTHERN CYPRUS

2010 ◽  
Vol 11 (1) ◽  
pp. 112-130 ◽  
Author(s):  
Salih Katircioglu
Keyword(s):  
Economic Growth ◽  
International Trade ◽  
Small Island ◽  
Long Run ◽  
Equilibrium Relationship ◽  
Island State ◽  
Northern Cyprus ◽  
Small Island State ◽  
Growth Hypothesis ◽  
Long Run Equilibrium

This paper empirically investigates long‐run equilibrium relationship and causality between international trade and economic growth in North Cyprus, which has a non‐recognized state and suffers from the Cyprus problem for more than 40 years. Results reveal that long‐run equilibrium relationship exists between international trade variables (exports and imports of goods and services) and economic growth in this small island state. The present study also validates the existence of export‐led growth hypothesis in Northern Cyprus while it rejects the validity of import‐led growth hypothesis. Finally, this study has shown that Turkish Cypriots should improve not only services exports but also merchandise exports in to contribute to its economy further. Santrauka Straipsnyje, remiantis empiriniais duomenimis, tyrinejama ilgalaike pusiausvyra bei priežastinis ryšys tarp tarptautines prekybos ir ekonominio augimo Šiaures Kipre, kuris yra nepripažintas ir kenčia del šios politines problemos daugiau negu 40 metu. Empirinio tyrimo rezultatai leidžia teigti, kad tarp tarptautines prekybos rodikliu (prekiu ir paslaugu eksporto bei importo) bei ekonominio augimo šioje mažoje saloje vyrauja ilgalaike pusiausvyra. Tyrimas patvirtina hipoteze apie eksporto kaip ekonominio augimo veiksnio svarba, bet paneigia importo itaka nagrinejamos mažos šalies pletrai. Autorius ragina skatinti ne tik paslaugu, bet ir produkcijos eksporta norint pasiekti spartesni ekonomikos augimo masta Šiaures Kipre.

scholarly journals Analysing the relationship between CO2 emissions and GDP in China: a fractional integration and cointegration approach

2021 ◽  
Vol 10 (1) ◽  
Author(s):  
Guglielmo Maria Caporale ◽  
Gloria Claudio-Quiroga ◽  
Luis A. Gil-Alana
Keyword(s):  
Economic Growth ◽  
Long Memory ◽  
Fractional Integration ◽  
Environmental Policies ◽  
Dynamic Processes ◽  
Standard Methods ◽  
Long Run ◽  
Equilibrium Relationship ◽  
Cointegration Tests ◽  
The Relationship

AbstractThis paper examines the relationship between the logarithms of carbon dioxide (CO2) emissions and real Gross Domestic Product (GDP) in China by applying fractional integration and cointegration methods. These are more general than the standard methods based on the dichotomy between stationary and non-stationary series, allow for a much wider variety of dynamic processes, and provide information about the persistence and long-memory properties of the series and thus on whether or not the effects of shocks are long-lived. The univariate results indicate that the two series are highly persistent, their orders of integration being around 2, whilst the cointegration tests (using both standard and fractional techniques) imply that there exists a long-run equilibrium relationship between the two variables in first differences, i.e. their growth rates are linked together in the long run. This suggests the need for environmental policies aimed at reducing emissions during periods of economic growth.

scholarly journals Asymmetric Price Transmission between Local and Imported Rice Prices in Burkina Faso

2012 ◽  
Vol 4 (9) ◽  
pp. 523-531
Author(s):  
Emmanuel Asane Otoo
Keyword(s):  
Burkina Faso ◽  
Error Correction ◽  
Food Prices ◽  
Error Correction Models ◽  
Rice Market ◽  
Long Run ◽  
Consumer Prices ◽  
Cointegration Tests ◽  
Rice Prices ◽  
The Impact

The study of how price signals in imported rice market influences prices in the local rice market is essential in understanding the inter-relationship between these prices and how soaring global food prices affect prices of locally produced agricultural commodities. This study uses a set of cointegration and error correction models with symmetric and asymmetric adjustment towards the long-run equilibrium to investigate the long-run relationship between local and imported rice prices and the extent to which imported rice prices are transmitted to local rice prices in Burkina Faso. Using national average consumer prices from January 2000 to June 2011, empirical results from the Engle-Granger and Johansen cointegration tests show that consumer price of local rice is significantly integrated with the imported rice market prices. Both threshold cointegration and asymmetric error correction models indicate that consumer prices of local rice respond asymmetrically to shocks from the imported rice price. Specifically, local rice prices respond rapidly to negative shocks while positive shocks take substantial amount of time to be transmitted. These findings provide clear empirical evidence with respect to the impact of imported rice prices on local rice prices and the role of profit-seeking traders in maintaining or increasing the price wedge between the two prices in Burkina Faso.

أثر محددات الاستثمار في الاقتصاد العراقي للمدة (2004-2018) ، دراسة قياسية

2021 ◽  
Vol 1 (1) ◽  
Author(s):  
مهند المحمدي ◽  
محمد الحياني
Keyword(s):  
Error Correction ◽  
Statistical Significance ◽  
Economic Thought ◽  
Explanatory Variables ◽  
Equilibrium Relationship ◽  
Cointegration Tests ◽  
Short And Long Term ◽  
Standard Models ◽  
Theoretical Foundations

The research aims to measure and analyze the determinants of investment in the Iraqi economy and study the theoretical foundations of investment and analyze the viewpoint of the most important schools of economic thought regarding investment and investment determinants and their effects on economic activity , and by using possible standard models as the results of standard analysis using the joint integration tests of time series . cointegration tests, they have proven the existence of a long-term equilibrium relationship according to the methodology of the results of estimating the short and long-term parameters and the error correction parameter(ECM) , it is moving from a set of explanatory variables towards The dependent variable, while the value of the error correction vector coefficient was negative and significant , as it reached (-0.59%) , which means the fulfillment of the two basic conditions in this parameter , namely : its negative value and the statistical significance . This means that (0.59) of the short-term errors are automatically corrected during the unit of time (year) to reach the equilibrium in the long term, meaning that the investment requires about less then a year (1.6) , that is , approximately a year and 6 days to reach its equilibrium value in the long term , In other words , the previous period deviates from the long-term equilibrium and is corrected in the current by (59%) . This indicates that the adjustment in the model was relatively fast .

International Trade and Economic Performance in Tanzania: Further Evidence

2021 ◽  
pp. 1-17
Author(s):  
Ally A. L. Kilindo
Keyword(s):  
Economic Growth ◽  
International Trade ◽  
Economic Performance ◽  
Trade Restrictions ◽  
Correction Model ◽  
Spurious Regression ◽  
Long Run ◽  
Reform Period ◽  
Manufactured Goods

Abstract The study investigated the role of international trade in economic performance in Tanzania for the post reform period, from 1980 to 2018. International trade is measured by disaggregated imports and exports while economic performance is measured by GDP growth. Exports are disaggregated into manufactured goods and non-manufactured goods while imports are disaggregated into capital goods and intermediate goods. To obtain robust non-spurious regression results, Dickey-Fuller (D-F) and Phillips-Peron (PP) Unit Root tests were performed. Johansen Co-integration tests were employed to investigate long-run relationships between export, imports and economic growth. The Johansen test suggested a long-run relationship between international trade and its components and economic development. In addition, the Error Correction Model (ECM) results further supported a long-run relationship between international trade and economic growth in Tanzania. This calls for further opening of the economy and further liberalisation of trade restrictions.

scholarly journals Dynamic Causal Relationships among GDP, Exports, and Foreign Direct Investment (FDI) in the Developing Countries

2013 ◽  
Vol 14 ◽  
pp. 1-19 ◽  
Author(s):  
Mohsen Mehrara ◽  
Amin Haghnejad ◽  
Jalal Dehnavi ◽  
Fereshteh Jandaghi Meybodi
Keyword(s):  
Economic Growth ◽  
Developing Countries ◽  
Foreign Direct Investment ◽  
Strong Evidence ◽  
Direct Investment ◽  
The Other ◽  
Fdi Inflows ◽  
Long Run ◽  
Short Run ◽  
Growth Hypothesis

Using panel techniques, this paper estimates the causality among economic growth, exports, and Foreign Direct Investment (FDI) inflows for developing countries over the period of 1980 to 2008. The study indicates that; firstly, there is strong evidence of bidirectional causality between economic growth and FDI inflows. Secondly, the exports-led growth hypothesis is supported by the finding of unidirectional causality running from exports to economic growth in both the short-run and the long-run. Thirdly, export is not Granger caused by economic growth and FDI inflow in either the short run or the long run. On the basis of the obtained results, it is recommended that outward-oriented strategies and policies of attracting FDI be pursued by developing countries to achieve higher rates of economic growth. On the other hand, the countries can increase FDI inflows by stimulating their economic growth.

scholarly journals How applicable is export-led growth and import-led growth hypotheses to South African economy?

2015 ◽  
Vol 4 (2) ◽  
pp. 15-24
Author(s):  
Ntebogang Dinah Moroke ◽  
Molebogeng Manoto
Keyword(s):  
Economic Growth ◽  
South Africa ◽  
Adverse Effect ◽  
Time Series ◽  
South African ◽  
Time Series Data ◽  
Series Data ◽  
Long Run ◽  
Reserve Bank ◽  
Equilibrium Relationship

This paper investigated exports, imports and the economic growth nexus in the context of South Africa. The paper sets out to examine if long-run and causal relationships exist between these variables. Quarterly time series data ranging between 1998 and 2013 obtained from the South African Reserve Bank and Quantec databases was employed. Initial data analysis proved that the variables are integrated at their levels. The results further indicated that exports, imports and economic growth are co-integrated, confirming an existence of a long-run equilibrium relationship. Granger causal results were shown running from exports and imports to GDP and from imports to exports, validating export-led and import-led growth hypotheses in South Africa. A significant causality running from imports to exports, suggests that South Africa imported finished goods in excess. If this is not avoided, lots of problems could be caused. A suggestion was made to avoid such problematic issues as they may lead to replaced domestic output and displacement of employees. Another dreadful ramification may be an adverse effect on the economy which may further be experienced in the long-run.

scholarly journals Bounds Testing Approach to Cointegration: A Re-examination of FDI and Growth in Vietnam

2013 ◽  
Vol 218 ◽  
pp. 94-113
Author(s):  
ANH PHẠM THẾ ◽  
ĐÀO NGUYỄN THỊ HỒNG
Keyword(s):  
Economic Growth ◽  
Small Sample Size ◽  
Small Sample ◽  
Adjustment Process ◽  
Bounds Testing ◽  
Distributed Lag ◽  
Distributed Lag Model ◽  
Long Run ◽  
Short Run ◽  
Lag Model

This study examines the econometric and empirical evidence of both causal and long-run relationship between foreign direct investment (FDI) and economic growth in Vietnam, covering a time span of 21 years from 1991 to 2012. The recent and robust methodology of bounds testing or autoregressive distributed lag model (ARDL) approach to Cointegration is employed for the empirical analysis. This technique can capture both short-run and long-run dynamics of variables, particularly in small sample size cases. The findings indicate the existence of a Cointegration relationship between the two time series and a modest adjustment process from short-run to long-run equilibrium. Further results from Granger causality tests conducted within the error correction model confirm a bi-directional causality between economic growth and FDI over the study period.

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