Impact of Military Expenditures on the Globalization Process: A Spatial Econometric Analysis for African Region

2021 ◽  
pp. 002190962110103
Author(s):  
Saima Sarwar ◽  
Alvina Sabah Idrees
Keyword(s):  
Economic Growth ◽  
Negative Relationship ◽  
Fixed Effect Model ◽  
Fixed Effect ◽  
Spatial Econometric ◽  
Effect Model ◽  
The World ◽  
Spatial Autoregressive ◽  
Military Expenditures ◽  
The Impact

With modernization, ideological shifts and economic interdependency, the concept of globalization has expanded vastly. Though the world is unipolar, still the international competition remains prevalent that poses serious threats to regional conflicts. The great powers of the world are still competing with each other for influence over other countries. Thus, the role of militarization cannot be ignored in this context. Thus, it would be interesting to examine the impact of military expenditures on the globalization process through the spill-over effects, along with their relationship with economic growth. The study employed panel data consisting of African countries, covering the time period from 2001 to 2014. The econometric estimation is done through the application of spatial econometric techniques, that is, the spatial autoregressive fixed effect model and spatial Durbin fixed effect model. The study has found a positive relationship between economic growth and globalization but a negative relationship was found between military expenditures and economic growth.

scholarly journals The impact of corruption on the economic growth in Bangladesh, India and Pakistan: An ARDL approach

2021 ◽  
Vol 12 (8) ◽  
pp. 2079-2093
Author(s):  
Md. Mamun Miah ◽  
Tahmina Akter Ratna ◽  
Shapan Chandra Majumder
Keyword(s):  
Economic Growth ◽  
Correction Term ◽  
Negative Relationship ◽  
Secondary Data ◽  
Fixed Effect Model ◽  
Positive Influence ◽  
Fixed Effect ◽  
Ardl Model ◽  
Effect Model ◽  
The Impact

Purpose of the study: Main purpose of the paper is to find out the impact of corruption on the economic growth of Bangladesh, India, and Pakistan. At the same time, our other objectives are to find the long and short-run effects of corruption on growth in these countries. Methodology: For conducting the study, we have taken the data from Bangladesh, India, and Pakistan. For this study necessary secondary data have been collected from 1990 to 2016 based on countries like Bangladesh, India, and Pakistan. Data for economic growth (dependent) and trade (independent) are collected from World Development Bank and data for corruption are taken from International Country Risk published by the PRS Group. The study has used ECM ARDL Model and the Fixed Effect Model.  Findings: The result of the fixed effect model shows a 1percent increase in corruption decreases GDP by 0.07 units and shows a negative relationship with economic growth. Again if trade increases by 1 percent then growth will increase by 0.09 units on average and shows a positive relationship with economic growth. ECM ARDL Model shows the positive coefficient of corruption but not significant but trade has a long-run positive influence on economic growth. The error correction term indicating that the adjustment is corrected by 70% in these three countries. Contributions: This paper may be helpful for existing literature gap and also for further research. It will be helpful for policy makers to control corruption in three countries.

scholarly journals Inequality and Economic Growth: An Analysis of 8-Panels

2017 ◽  
Vol 3 (2) ◽  
pp. 173
Author(s):  
Khadijah A. Idowu ◽  
Yusuf Bababtunde Adeneye
Keyword(s):  
Economic Growth ◽  
Panel Data Analysis ◽  
Random Effect ◽  
Random Effect Model ◽  
Specific Effect ◽  
Developed Countries ◽  
Fixed Effect Model ◽  
Fixed Effect ◽  
Effect Model ◽  
The World

<p><em>Purpose: This paper investigates the effects of inequality on economic growth in the world using continental approach.</em><em></em></p><p><em>Design/methodology:<strong> </strong>Gini Coefficient and Gross Domestic Products (GDP) per capita were used to measure inequality and economic growth respectively. The study conducted a panel data analysis of the relationship between inequality and economic growth. The data span from 1991-2015. Five countries were selected each from seven continents and were also pooled together to constitute a single panel for 35 countries, thus establishing 8 panels. The Hausman test was conducted to determine whether a random or fixed effect model best fit pooled countries analysis or not.</em><em></em></p><p><em>Findings: Findings revealed that for the developing countries, high income inequality retards economic growth while for the developed countries such as Europe countries; the situation seems to be different. European countries as revealed in the findings showed that developed countries have benefited from inequality which has significantly and positively affected their economic growth. The results for Panel II (Asia countries) and Panel III (Europe countries) are in line with the study of Forbes (2000) and Li and Zou (1998) that documented that inequality boosts economic growth. Importantly, we found that inequality positively affects economic growth for Panels/Continents with fixed effect model while inequality negatively affects economic growth for Panels/Continents with random effect model.</em></p><p><em>Research Limitation: The study did not control for each continent differences. For African countries, weak institutional settings and environment is a key factor contributing to high inequality.</em><em></em></p><p><em>Originality: The paper was able to know the specific effect of inequality on economic growth in each continent in the World. This documents continents that have benefited from inequality and those that inequality has greatly affected their economies negatively.</em><em></em></p>

The impact of institutions on economic growth in selected developing countries: An analysis based on Bayesian panel estimation

2020 ◽  
Vol 4 (4) ◽  
pp. 251-272
Author(s):  
Qasim Shah ◽  
Seema Zubair ◽  
Sundus Hussain
Keyword(s):  
Economic Growth ◽  
Developing Countries ◽  
Panel Data ◽  
Fixed Effect Model ◽  
Data Models ◽  
Fixed Effect ◽  
Estimation Methods ◽  
Panel Data Models ◽  
Effect Model ◽  
The Impact

This paper presents an empirical analysis of the impact of institutions on the economic growth of 27 developing countries during the period 1990-2014. Many creative models of panel data allow variations in slope coefficients both across time and cross-sectional units. All models were established in a Bayesian structure and their performance was tested by using an interesting application of the effect of institution on GDP. Technical details of all these models are given and tools are presented to compare their performance in the Bayesian system. Besides, panel data models and posterior model pools are provided for an insight into the institution's relationship with economic development. The derivation of Bayesian panel data models is included. The previous data has been used in this study and normal gamma prior is used for the models of panel data. 2SLS estimation technique has been used to analyze the classical estimation of panel data models. In the paper, developing countries were viewed as a whole. The study's evaluated results have shown that panel data models are valid Bayesian methodology models. In the Bayesian approach, the results of all independent variables affect the dependent variable significantly and positively. Based on all model standard defects, it is necessary to say that the Fixed Effect Model is the best in Bayesian panel data estimation methods. It was also shown that in comparison to other models, the fixed-effect model has the lowest standard error value.

scholarly journals THE EFFECT OF POPULATION GROWTH AND TRADE OPENNESS ON ECONOMIC GROWTH OF THE OIC COUNTRIES

2021 ◽  
Vol 8 (5) ◽  
pp. 537
Author(s):  
Noor Syahro El Muharromy ◽  
Ilmiawan Auwalin
Keyword(s):  
Economic Growth ◽  
Population Growth ◽  
Exchange Rates ◽  
Trade Openness ◽  
Negative Relationship ◽  
Fixed Effect Model ◽  
Fixed Effect ◽  
Effect Model ◽  
Analysis Technique ◽  
The Government

ABSTRAKPertumbuhan ekonomi memegang peranan penting dalam menentukan keberhasilan pembangunan sebuah negara, oleh karena itu setiap negara selalu menetapkan target pertumbuhan ekonomi yang stabil dalam tujuan pembangunan. Dalam prosesnya pertumbuhan ekonomi dipengaruhi oleh berbagai factor yang dapat mendorong atau bahkan menghambat laju pertumbuhan. Penelitian ini bertujuan untuk menganalisis pertumbuhan penduduk, keterbukaan perdagangan, inflasi, nilai tukar dan investasi terhadap pertumbuhan ekonomi 40 negara anggota Organisasi Kerjasama Islam (OKI) pada tahun 2005-2019 menggunakan pendekatan kuantitatif dengan teknik analisis regresi data panel fixed effect model dan menggunakan aplikasi Eviews 11dalam mengelola data penelitian. Hasil penelitian ini menunjukkan bahwa variabel pertumbuhan penduduk dan nilai tukar memiliki hubungan signifikan dan negatif terhadap pertumbuhan ekonomi, sedangkan keterbukaan perdagangan dan investasi berpengaruh signifikan dan positif. Sedangkan investasi tidak berpengaruh signifikan pada pertumbuhan ekonomi di Negara OKI. Berdasarkan hasil penelitian ini pemerintah dan pihak terkait diharapkan dapat mengendalikan tingkat pertumbuhan penduduknya serta mendorong sektor perdagangan internasional untuk meningkatkan pertumbuhan ekonomi mengingat tingkat keterbukaan perdagangan di Negara OKI masih dibawah potensinya.Kata Kunci: Pertumbuhan Ekonomi, Pertumbuhan Penduduk, Keterbukaan Perdagangan, Organisasi Kerjasama Islam. ABSTRACTEconomic growth plays an important role in determining the success of a country's development; therefore, each country always sets a target for stable economic growth in its development goals. In the process, economic growth is influenced by various factors that can encourage or even hinder the growth rate. The purpose of this study is to analyze the effect of population growth, trade openness, inflation, exchange rates and investment on the economic growth of 40 member countries of the Organization of Islamic Cooperation (OIC) in 2005-2019 using a quantitative approach with a fixed effect model panel data regression analysis technique and using the Eviews application. 11 in managing research data. The results of this study indicate that the variables of population growth and exchange rates have a significant and negative relationship to economic growth, while trade openness and investment have a significant and positive effect. Meanwhile, investment has no significant effect on economic growth in the OIC Country. Based on the results of this study, the government and related parties are expected to control the rate of population growth and encourage the international trade sector to increase economic growth considering that the level of trade openness in the OIC is still below its potential.Keywords: Economic Growth, Population Growth, Trade Openness, Organization of Islamic Cooperation

scholarly journals Determinants of Financial Performance of Nepalese Commercial Banks: Evidence from Panel Data Approach

2020 ◽  
Vol 32 (2) ◽  
pp. 45-59
Author(s):  
Purna Man Shrestha
Keyword(s):  
Panel Data ◽  
Financial Performance ◽  
Commercial Banks ◽  
Fixed Effect Model ◽  
Fixed Effect ◽  
Lagrangian Multiplier ◽  
Effect Model ◽  
Specific Factors ◽  
The Impact ◽  
Bank Specific Factors

The impact of bank specific factors on the financial performance of Nepalese commercial banks is analyzed in this paper. The financial performance is measured by using return on assets (ROA). Similarly, managerial efficiency (ME), liquidity (LIQ), credit risk (CR), assets quality (AQ) and operational efficiency (OE) is used as proxy of bank specific factors. This study used panel data of 17 commercial banks for the period of 2010/11 to 2017/18. Breusch and Pagan Lagrangian multiplier test showed that Pooled Regression model is not appropriate and Hausman test concluded that Fixed Effect model is appropriate rather than Random Effect model. Using the Fixed Effect model; this study concludes that bank specific factors have significant impact on financial performance of Nepalese commercial banks. Finally, this study reveals that ME, AQ and OE have significant positive impact, and CR has negative impact on the financial performance of Nepalese commercial banks.  

scholarly journals Managing Climate Change for Wheat Production: An Evidence from Southern Punjab, Pakistan

2019 ◽  
Vol 1 (2) ◽  
pp. 48-58
Author(s):  
Muhammad Haseeb Raza ◽  
Allah Bakhsh ◽  
Muhammad Kamran
Keyword(s):  
Climate Change ◽  
Negative Impact ◽  
Fixed Effect Model ◽  
Fixed Effect ◽  
Wheat Production ◽  
Panel Model ◽  
Effect Model ◽  
Tube Wells ◽  
Relationship Of ◽  
The Impact

The current research study was conducted to estimate the impact of climate change on wheat production by using panel data from 1998-2014.  For this purpose four districts were selected from southern Punjab, Pakistan. Panel model of fixed effect (FE) was estimated at region level for wheat productivity utilizing climatic and non-climatic variables based on season. The conclusion of the study showed that non-climatic, i.e. inputs, number of tractors, area under wheat, number of tube wells and fertilizer consumption in each district have significant impact on the wheat production. The fixed effect model results revealed that the increase in temperature has significance impact on the month of the November and January, while it showed negative impact in the month of April. The results also showed a non-linear relationship of precipitation for the months of April and November.

ANALISIS:PENGARUH;DEMOKRASI TERHADAP;PERTUMBUHAN;EKONOMI INDONESIA;BAGIAN TIMUR

2019 ◽  
Vol 1 (3) ◽  
pp. 877
Author(s):  
Vina Indriani ◽  
Melti Roza Adry
Keyword(s):  
Economic Growth ◽  
Significant Influence ◽  
Fixed Effect Model ◽  
Free Variable ◽  
Fixed Effect ◽  
Analysis Tool ◽  
Control Variables ◽  
Eastern Indonesia ◽  
Effect Model ◽  
Educational Variables

The;purpose of;this research is;to;know:and;analyze:>(1);The;influence of;democracy;on;the economic;growth;of;eastern;Indonesia. (2) Investment influence on the economic growth of eastern Indonesia. (3) The influence of education on economic growth in eastern Indonesia. (4) The influence of democracy, investment, and education jointly towards the;economic;growth;of;eastern;Indonesia.The variables used;in;this study were economic growth as a bound variable and democracy as a free variable, as well as investment and educational variables as control variables. The research used the 17 provincial data panel in eastern Indonesia in 2009-2017. Data is obtained from the Central Statistics agency.The analysis tool used in this study is a regression panel with the model chosen is the Fixed Effect Model. The results showed that: (1) democracy is positive and significant to the economic growth of Eastern Indonesia, (2) investments have positive and significant impact on the economic growth of Eastern Indonesia, (3) education Positive and significant influence on the economic growth of Eastern Indonesia, (4) Democracy, investment, and education jointly significantly]influence{the}economic?growth/of/eastern Indonesia.

scholarly journals Analisis Pengaruh Pertumbuhan Ekonomi (PDRB), Rata-Rata Lama Sekolah Dan Pengangguran Dalam Disparitas Anggaran Pendidikan Di Indonesia Tahun 2015-2019

2021 ◽  
Vol 11 (2) ◽  
pp. 187
Author(s):  
Luthfiah Azizah
Keyword(s):  
Economic Growth ◽  
Human Resources ◽  
Quantitative Method ◽  
Average Length ◽  
Fixed Effect Model ◽  
Average Increase ◽  
Effect Model ◽  
The Impact ◽  
Creativity And Innovation

In the field of education every human being will experience a process. The presses are made to improve science, ability, creativity and innovation. In addition, education is able to increase economic growth, with the education sector able to increase the quality of human resources on the other hand indirectly, the old school's average increase in the quality of human resources and labor productivity so that it can reduce unemployment. The study aims to find out the impact of economic growth, the average length of school and unemployment on Indonesia's provincial education budget 2015-2019. This kind of research uses a quantitative method with the fixed effect model. The results of variable economic growth has significant impact on the education budget with a probability of 0,0019 or less than 0,05, for the average variable old school has significant impact on the education budget with a probability of 0.0022 and unemployment variable have a staggering 0.0000 or less than 0,05, and a variables of economic growth, the average long school and unemployment have a significant impact on the education budget with a probability of 0.000009 or less than a 0.05.

scholarly journals The impact of economic freedom on foreign portfolio investments

2020 ◽  
Vol 9 (2) ◽  
pp. 213-222
Author(s):  
Tricia Karen Mangal ◽  
Day-Yang Liu
Keyword(s):  
Economic Freedom ◽  
Foreign Debt ◽  
Fixed Effect Model ◽  
Single Market ◽  
Fixed Effect ◽  
Foreign Investors ◽  
Effect Model ◽  
The Impact ◽  
Positive Effect ◽  
Portfolio Investments

The present phenomena of globalization and market liberalization have attracted considerable attention from foreign investors. Several member states of the Caricom Single Market and Economy are becoming heavily dependent on foreign investments. Consequently, this study intends to investigate the effect of economic freedom on foreign portfolio investments in the case of the Caricom Single Market and Economy. For this purpose, this study has used data from 2012 to 2016. The results of the stationarity test showed that data of all variables considered in the study are stationary at level. Moreover, the fixed-effect model better modeled the data as suggested by the results of the Hausman test. Based on the results of the fixed effect models, economic freedom has a significant and positive effect on the total foreign portfolio investments. Therefore, an increase in economic freedom among the Caricom Single Market and Economy member countries will attract more investors to invest in their country stocks and debt instruments. Furthermore, for the robustness of the results, the study has also estimated a separate regression model for foreign debt portfolio investments and foreign equity portfolio investments which also support the baseline regression results and showed a significant and positive effect of economic freedom on both foreign debt and foreign equity portfolio investments. This study suggests that the member countries of the Caricom Single Market and Economy improve their economic freedom which will attract foreign investors to invest in their countries. 

scholarly journals Exchange Rate, Terms of Trade and Employment Nexus: Evidence From Turkey

2020 ◽  
Author(s):  
Muhammad Salah Uddin ◽  
Mahadi Hasan ◽  
Zobayer Ahmed
Keyword(s):  
Exchange Rate ◽  
Real Wage ◽  
Positive Impact ◽  
Fixed Effect Model ◽  
Terms Of Trade ◽  
Fixed Effect ◽  
Moderate Increase ◽  
Real Wages ◽  
Effect Model ◽  
The Impact

Abstract The objective of this study is to analyze the impact of the real exchange rate (RER) on employment, and real wage using quarterly disaggregated data (ISIC Rev 4 classification) composed of 19 industries in Turkey from 2010 to 2017. In our study, we employed the Fixed Effect Model, where industry-specific effects are used to control heterogeneity within the sectors. Moreover, robustness is applied to get rid of the heteroscedasticity in the error terms. Our results find that the currency appreciation has a negative, however insignificant effect on employment; whereas it has a significant positive impact on real wage. Generally, the terms of trade has no remarkable impact on employment and real wages; however, the larger industries have a substantial adverse impact on employment. Nevertheless, the interaction between currency appreciation and the top 25 per cent larger industries indicates a moderate increase in employment. The findings reflect that the appreciation of the domestic currency decreases employment at the industry level. The originality of this paper includes the effects of the terms of trade and interaction with currency appreciation in larger industries using Fixed Effect Model approach.

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