DOES EXPORT DIVERSIFICATION MATTER FOR CHINA’S REGIONAL GROWTH?

2019 ◽  
Vol 64 (04) ◽  
pp. 863-882
Author(s):  
DAHAI FU ◽  
YANRUI WU ◽  
YING ZHANG
Keyword(s):  
Economic Growth ◽  
Economic Reform ◽  
Empirical Studies ◽  
Regional Growth ◽  
Growth Effect ◽  
Nonlinear Relationship ◽  
Export Diversification ◽  
Regional Economies ◽  
Cross Country ◽  
Geographical Diversification

China has enjoyed high economic growth for more than three decades since the initiative of economic reform in early 1980s. This growth has been driven mainly by labor-intensive export-oriented manufacturing activities. Yet, there are remarkably few empirical studies of the link between export diversification and economic growth. In this paper, the effect of export diversification on economic growth in Chinese provinces in the period 2000–2006 is examined. The findings support cross-country evidence that regions with diversified export baskets enjoy higher economic growth. However, it is found that the growth benefits are linked to diversification of export products, rather than geographical diversification of exports. Further, it is also found that the growth effect and export diversification may have a nonlinear relationship. As such, governments promoting export diversification should distinguish the diversification of export products from that of export destinations. Their policies should also change as regional economies develop.

scholarly journals On Nonlinear Relationship between Inflation and Economic Growth: A Study of ASEAN-5 Countries Period 2000–2016

2018 ◽  
Vol 63 (1) ◽  
pp. 1
Author(s):  
Ambar Galih ◽  
Sugiharso Safuan
Keyword(s):  
Economic Growth ◽  
Negative Correlation ◽  
Vector Autoregression ◽  
Empirical Studies ◽  
Vital Role ◽  
Nonlinear Relationship ◽  
Vector Autoregression Model ◽  
Autoregression Model

Money (inflation) has played a vital role in economic growth. However, the nexus between them has always drawn mesmerizing debates. From the thoughts of Classical and Keynes which argued the existence of money neutrality, to the level of empirical studies which find either positive or negative correlation between inflation and economic growth. Recent studies concerning the debatable relationship have evolved it into a hypothesis whether the relation is nonlinear with a threshold or a point where the link switches. This study aims to re-examine the causality between inflation and economic growth in ASEAN-5 countries period 2000Q1–2016Q4. The results based on Threshold Vector Autoregression model indicate the presence of a nonlinear relationship between the two variables.

THE RELATIVE CONTRIBUTIONS OF DOMESTIC AND FOREIGN DIRECT INVESTMENTS AND EXPORTS TO MALAYSIA'S ECONOMIC GROWTH

2015 ◽  
Vol 60 (02) ◽  
pp. 1550011 ◽  
Author(s):  
CHOR FOON TANG ◽  
EU CHYE TAN
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
Positive Impact ◽  
Empirical Studies ◽  
Decomposition Analysis ◽  
Variance Decomposition ◽  
Growth Effect ◽  
Foreign Direct Investments ◽  
Causality Test

The objective of this study is to assess the roles of domestic direct investment, foreign direct investment and exports as catalysts of Malaysia's economic growth using cointegration and Granger causality test techniques. To address the dynamics in the growth relationships, the study also performs time-varying regression and variance decomposition analyses. It covers the quarterly sample period from 1991:Q1 to 2010:Q2. The econometric results suggest that all the three variables have a positive impact on economic growth and thus are catalytic to economic growth. However, the growth effect of domestic direct investment is more stable than that of the other two growth determinants. Contrary to earlier empirical studies, the variance decomposition analysis herein reveals that domestic direct investment is the most important determinant of growth in the long-run (L-R) compared to exports and foreign direct investment.

scholarly journals A Stochastic Dominance Approach to Evaluating Pro-Poor Growth—An Application to the Spanish Case

2020 ◽  
Vol 12 (5) ◽  
pp. 1728 ◽  
Author(s):  
Ismael Ahamdanech ◽  
Carmelo García-Pérez ◽  
Mercedes Prieto-Alaiz
Keyword(s):  
Economic Growth ◽  
Stochastic Dominance ◽  
Poverty Reduction ◽  
Statistical Tests ◽  
Regional Growth ◽  
Growth Effect ◽  
Poor Growth ◽  
The Great Recession ◽  
Income Data ◽  
The Difference

In this paper, we analyze, in a novel way, the nature of economic growth in Spain after the Great Recession, in relation to its effect on poverty reduction. We use a statistical test to analyze the pro-poorness nature of economic growth using a stochastic dominance approach, not used in this context so far. We decompose changes in the difference in generalized Lorenz ordinates into a growth effect and an inequality effect and apply this to formal Spanish income data statistical tests based on dominance methods. We found that growth was pro-poor in Spain as a whole between 2013 and 2017. As regards regional growth effects, we conclude that growth was weakly pro-poor in seven of Spain’s 17 regions, it was neither pro-poor nor anti-poor in nine regions, and only weakly anti-poor in one region.

Regional integration and growth: New empirical evidence from WAEMU

2019 ◽  
Vol 19 (2) ◽  
pp. 123-143 ◽  
Author(s):  
Jonathan E. Ogbuabor ◽  
Onyinye I. Anthony-Orji ◽  
Oliver E. Ogbonna ◽  
Anthony Orji
Keyword(s):  
Economic Growth ◽  
West Africa ◽  
Regional Integration ◽  
Descriptive Analysis ◽  
Empirical Support ◽  
Institutional Quality ◽  
Growth Effect ◽  
Policy Reforms ◽  
Positive Growth ◽  
Cross Country

This study provides a pioneer analysis of the growth effect of WAEMU integration at the econometric level, unlike the extant literature that relied on descriptive analysis of the sub-region’s trade statistics. The study used robust instrumental variables system GMM regression in the framework of a cross-country growth model and annual panel data for the period 2000 to 2015. Contrary to the widely held view that regional economic integration fosters economic growth of the participating countries, we did not find any empirical support for a positive growth impact of WAEMU integration in West Africa, which may be due to a variety of factors that mainly point to the characteristics of the WAEMU economies. However, the results indicate that foreign direct investment (FDI), institutional quality, capital, labour and the initial real per capita GDP are important drivers of growth in the sub-region. Interestingly, the results further indicate that FDI and institutional quality are the channels through which WAEMU integration may impact on growth in West Africa. The study therefore concludes that policy reforms towards improved institutions and increased FDIs will enhance economic growth in West Africa.

Income Inequality and Economic Growth: Heterogeneity and Nonlinearity

2019 ◽  
Vol 24 (3) ◽  
Author(s):  
Abebe Hailemariam ◽  
Ratbek Dzhumashev
Keyword(s):  
Economic Growth ◽  
Income Inequality ◽  
Measurement Errors ◽  
Developing Economies ◽  
Threshold Effect ◽  
Growth Effect ◽  
Developed Economies ◽  
Nonlinear Growth ◽  
Cross Country ◽  
The Relationship

AbstractThis paper examines the relationship between income inequality and economic growth in a broad panel of countries over the period from 1965 to 2014. We utilize an improved dataset for inequality with reduced measurement errors, which fosters cross-country comparability. In addition, we investigate whether accounting for heterogeneity across countries alters the estimated effect of inequality on growth, and whether the inequality-growth nexus varies with the level of income inequality. Our estimates show that after accounting for heterogeneity, the nonlinear growth effect of income inequality remains statistically and economically significant. We find a threshold effect of inequality on economic growth, and this threshold is higher for developing economies than for developed economies.

scholarly journals The Impact of Gender Wage Gap on Sectoral Economic Growth – Cross-country Approach

Equilibrium ◽  
2013 ◽  
Vol 8 (3) ◽  
pp. 103-122
Author(s):  
Joanna Wolszczak-Derlacz
Keyword(s):  
Economic Growth ◽  
Gender Wage Gap ◽  
Wage Gap ◽  
Empirical Studies ◽  
Skilled Workers ◽  
Manufacturing Sectors ◽  
Sectoral Growth ◽  
Cross Country ◽  
The Impact ◽  
The Relationship

We propose an empirical analysis of testing the relationship between gender wage gap and economic growth. The study takes into account 12 manufacturing sectors in 18 OECD countries for the period between 1970 and 2005.We use industrial statistics (EU KLEMS, 2008) on female and male wages that distinguish between wages paid to different groups of workers classified according to skill level: high, medium and low. We estimate augmented production function where the malefemale wage differentials constitute a potential channel influencing growth (positively or negatively). Our research is motivated by the ambiguous results of previous empirical studies (e.g.: Seguiono 2000; Busse, Spielmann 2006; Seguino 2011; Schober, Winter-Ebmer 2011). Our main findings indicate that gender wage gap for high, medium and low-skilled workers is negatively correlated with sectoral growth. This results are confirmed in a number of robustness checks.

Is inflation targeting useful for economic growth?

2017 ◽  
pp. 62-74 ◽  
Author(s):  
P. Kartaev
Keyword(s):  
Economic Growth ◽  
Monetary Policy ◽  
Test Performance ◽  
Inflation Targeting ◽  
Developing Economies ◽  
Empirical Studies ◽  
Growth Regime ◽  
Potential Channels

The paper presents an overview of studies of the effects of inflation targeting on long-term economic growth. We analyze the potential channels of influence, as well as modern empirical studies that test performance of these channels. We compare the effects of different variants of inflation targeting (strict and mixed). Based on the analysis recommendations on the choice of optimal (in terms of stimulating long-term growth) regime of monetary policy in developed and developing economies are formulated.

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