How does institutional quality moderates the impact of tourism on economic growth? Startling evidence from high earners and tourism-dependent economies

2021 ◽  
pp. 135481662199362
Author(s):  
Festus Fatai Adedoyin ◽  
Naila Erum ◽  
Festus Victor Bekun
Keyword(s):  
Economic Growth ◽  
Positive Impact ◽  
Institutional Quality ◽  
Causality Test ◽  
Weak Institutions ◽  
High Earning ◽  
Generalised Method Of Moments ◽  
Wealth Of Nations ◽  
Sustainable Economic Growth ◽  
The Impact

Over the years, policymakers in tourism-reliant economies have been saddled with the mandate to not only accelerate economic growth but also increase the living standards of domestic citizens. Tourism development has been highlighted in the extant literature as a route to attaining sustainable economic growth. Past studies affirm that tourism contributes significantly to both the wealth of nations and cultural diffusion. However, whether institutional quality moderates the impact of tourism on economic growth has yet to be given sufficient academic attention. The study uses data from 2002 to 2017 and the generalised method of moments methodology, while the Dumitrescu–Hurlin panel causality test is applied to check the robustness of results. The empirical results show that a 1% increase in tourist arrivals or air transport led to a 0.41% and 0.17% increase in economic growth, respectively. However, when particular governance variables are taken into consideration, this impact is reduced to −0.09% and −0.02% for both tourism proxies. This implies that the influence of governance on the tourism-led growth hypothesis through an interaction term between institutional quality and tourist arrivals was found to reverse the impact of tourism on growth from positive to negative in both high-earning and tourism-dependent countries. While infrastructure also contributes to economic growth, its impact is slightly higher in top earners than in tourism-dependent economies. The results of the study suggest that weak institutions in both country groups allow corrupt practices, which divert the positive impact that tourism should have on economic growth.

scholarly journals Higher Education Funding and Economic Growth: Empirical Evidence from Croatia

2020 ◽  
Vol 67 (3) ◽  
pp. 409-421
Author(s):  
Maja Nikšić Radić ◽  
Hana Paleka
Keyword(s):  
Higher Education ◽  
Economic Growth ◽  
Structure Model ◽  
Higher Education Funding ◽  
Causality Test ◽  
Economic Growth And Development ◽  
Social And Economic Development ◽  
Sustainable Economic Growth ◽  
The Impact ◽  
Growth Hypothesis

Deprived of investment in education, no country can expect sustainable economic growth and development. Higher education is particularly a priceless tool in today's era of globalization that requires continuous education to keep up with new knowledge. According to UNESCO (2014), higher education is no longer a luxury; it is essential to national, social and economic development. The impact of education on economic growth is possible to observe within the so-called ‘education led growth hypothesis’. The main aim of this paper it to analyse the higher education size and structure, model and financing sources in Croatia and to test the ‘education led growth hypothesis’ on the example of Croatia. The study will apply the Granger causality test to evaluate if there is any causal relationship between investment in higher education and economic growth in Croatia.

scholarly journals Economic Growth by Means of Fiscal Decentralization: An Empirical Study for Federal Developing Countries

SAGE Open ◽  
2020 ◽  
Vol 10 (4) ◽  
pp. 215824402096808
Author(s):  
Imran Hanif ◽  
Sally Wallace ◽  
Pilar Gago-de-Santos
Keyword(s):  
Economic Growth ◽  
Developing Countries ◽  
Fiscal Federalism ◽  
Fiscal Decentralization ◽  
Positive Impact ◽  
Generalized Method Of Moments ◽  
Estimation Method ◽  
Tax Revenue ◽  
Weak Institutions ◽  
The Impact

The impact of fiscal federalism on economic performance has largely been studied in the developed world since the seminal work of Oates. In this article, we focus on a particular set of developing countries considered to be federal (Forum of Federations), to examine how fiscal decentralization has impacted their economic growth. In this context, we study the impact of tax revenue and expenditure decentralization on economic growth in developing federations. For this purpose, a panel data of 15 developing federations from 2000 to 2015 are analyzed by using a two-step system Generalized Method of Moments (GMM) estimation method. The results show that in federal developing countries, both tax revenue and expenditure decentralization have a significant, positive impact on economic growth. What is more, our findings show that the impact of fiscal decentralization on economic growth depends upon the level of perceived corruption and on the quality of the country’s institutions. Thus, empirical evidence depicts that the positive effect of fiscal decentralization on economic growth is tempered if the country is plagued with corruption, if it has weak institutions, and/or if it suffers from political instability. By contrast, a relatively corruption-free country featuring healthy institutions and a stable political environment could take fuller advantage of the effects of fiscal decentralization to improve economic growth.

FINANCIAL INTEGRATION, ENERGY CONSUMPTION AND ECONOMIC GROWTH IN VIETNAM

2020 ◽  
Vol 15 (03) ◽  
pp. 2050010
Author(s):  
NGUYEN MINH HA ◽  
BUI HOANG NGOC ◽  
MICHAEL MCALEER
Keyword(s):  
Economic Growth ◽  
Energy Consumption ◽  
Financial Integration ◽  
Positive Impact ◽  
Vector Autoregressions ◽  
Bounds Testing ◽  
Causality Test ◽  
Empirical Results ◽  
Long Run ◽  
The Impact

The paper investigates the impact of financial integration and energy consumption on economic growth in Vietnam during the period 1986–2017. By applying the Autoregressive Distributed Lag ARDL) approach proposed by Pesaran et al. [Pesaran, MH, Y Shin and RJ Smith (2001). Bounds testing approaches to the analysis of level relationships. Journal of Applied Econometrics, 16(3), 289–326.] and the bounds cointegration test, the empirical results show the existence of long-term cointegration among all the variables, and that an increase in financial integration leads to an increase in economic growth in the long run. There is a positive impact of energy consumption on growth in both the short run and long run. The causality test of Toda and Yamamoto [Toda, HY and T Yamamoto (1995). Statistical inference in vector autoregressions with possibly integrated processes. Journal of Econometrics, 66(1–2), 225–250.] confirm that there is bi-directional causality between the pairs, financial integration and economic growth, and energy consumption and growth, which support the feedback hypothesis. However, there is only uni-directional causality from energy consumption to financial integration. The empirical results should be of major empirical importance for public policy decision-makers to plan sustainable development goals for Vietnam.

scholarly journals The Impact of Women Parliamentarians on Economic Growth: Modelling & Statistical Analysis of Empirical Global Data

2020 ◽  
Vol 9 (3) ◽  
pp. 23
Author(s):  
Eman Khorsheed
Keyword(s):  
Economic Growth ◽  
Statistical Analysis ◽  
Low Income ◽  
Positive Impact ◽  
Women Candidates ◽  
Political Empowerment ◽  
Joint Influence ◽  
Severe Degree ◽  
Sustainable Economic Growth ◽  
The Impact

The impact of empowering women on economic growth is investigated through testing the influence of proportion of women candidates in parliaments. To obtain a long-term view, cross-country analysis is performed in parallel using 10 years World Bank data of 72 countries divided into the UN income-groups: 1-high, 2-upper-middle, 3-lower-middle, and 4- low-income. Statistical analysis reveals severe degree of multicollinearity. To unveil the desired connection, two approaches are implemented. Principle Component Regression is used to assess the independent impact of women parliamentarians. The results demonstrate a positive significant influence: 10% increase in female parliamentarians increase growth by 0.27%, 0.36%, 0.22%, and 0.49%, respectively. To unveil the joint influence of the considered indicators, interaction regression models are developed. The method demonstrates superior results. This work provides an empirical evidence on the positive impact of women political empowerment with respect to stimulating a sustainable economic growth.

A Causal Analysis between Construction Flows and Economic Growth: Evidence from India

2011 ◽  
Vol 12 (2) ◽  
pp. 27-42
Author(s):  
Aviral Kumar Tiwari
Keyword(s):  
Economic Growth ◽  
Standard Deviation ◽  
Structural Breaks ◽  
Negative Impact ◽  
Positive Impact ◽  
Causality Test ◽  
Positive Direction ◽  
Dynamic Framework ◽  
Long Run ◽  
The Impact

The study examined the causal relationship between construction flows and economic growth under a static and dynamic framework by employing the Engel-Granger and IRFs approach with incorporation of endogenously determined structural breaks. The static causality test result provided the evidence of bidirectional Granger-causality between construction flows and economic growth in India. The dynamic causality analysis indicated that for the first ten years, a standard deviation innovation in construction had positive impact on the GDP, while the long-run impact was negative. However, a standard deviation shock/innovation in GDP had a negative impact on the construction flows of the economy for the first 10 years of the period under shock analysis, while for the long-run, the impact was in the positive direction.

THE ROLE OF INSTITUTIONAL QUALITY IN THE RELATIONSHIP BETWEEN FDI AND ECONOMIC GROWTH IN VIETNAM: EMPIRICAL EVIDENCE FROM PROVINCIAL DATA

2019 ◽  
Vol 64 (03) ◽  
pp. 601-623 ◽  
Author(s):  
NGUYEN VAN BON
Keyword(s):  
Economic Growth ◽  
Positive Impact ◽  
Estimation Method ◽  
Institutional Quality ◽  
Economic Activities ◽  
Fdi Inflows ◽  
Important Message ◽  
The Impact ◽  
The Relationship

All investigations into the role of institutions in the relationship between foreign direct investment (FDI) and economic growth conclude the impact of interaction between FDI and institutional quality on economic growth is significantly positive. Contrary to the conclusion of these studies, this paper finds it is significantly negative for a panel data of 43 provinces in Vietnam over the period 2005–2012 via the estimation method of difference panel GMM Arellano–Bond. In addition, the estimated results also show: (1) FDI inflows significantly foster economic growth; (2) Good institutional quality has a significantly positive impact while bad institutional quality has a negative albeit insignificant effect on economic growth. From the policy perspective, these findings signal an important message to developing countries that governments should carefully adjust policies and institutions because aside from attracting more FDI inflows and promoting the economic activities, it can also be detrimental to economic growth.

scholarly journals ENTREPRENEURSHIP AND ECONOMIC GROWTH NEXUS IN NIGERIA: MODERATING EFFECT OF INSTITUTIONAL QUALITY: ARDL COINTEGRATION APPROACH

2021 ◽  
pp. 5-19
Author(s):  
Yusuf Shamsuddeen Nadabo ◽  
Suleiman Maigari Salisu
Keyword(s):  
Economic Growth ◽  
Positive Impact ◽  
Interactive Effect ◽  
Institutional Quality ◽  
Political Stability ◽  
Entrepreneurial Activity ◽  
Distributed Lag ◽  
Moderator Model ◽  
The Impact

This paper explores the relationship between entrepreneurship and economic growth in Nigeria: the moderating role of institutional quality. To accomplish this, the study employs an Autoregressive distributed lag (ARDL) from (2002Q1–2019Q4) and uses a moderator model to examine the impact of entrepreneurship on economic growth via institutional quality. The resilts show that institutional quality in Nigeria has a positive impact on economic growth. The results also indicate that the interactive effect of institutional quality and entrepreneurship has positive effect on economic growth in Nigeria both in the short-run and long-run. The study illustrate that the productive entrepreneurship is a potent vehicle for promoting long term economic growth in Nigeria. In general, unless institutional quality is introduced to improve the influence of entrepreneurship on economic growth, entrepreneurial activity alone may not lead to desired growth. Furthermore, the study presents a perspective of the role of government in establishing an enabling environment that promotes entrepreneurial activity and, as a result, enhances economic growth in Nigeria. Based on this finding, the study recommends for the implimantation of measures and policies aims at encourageing productive entrepreneurial activities that contribute to economic growth. In addition Government and policymakers should improved the quality of institutions such as improving Government Effectiveness, Political Stability and Absence of Violence, Voice and Accountability, Regulatory Quality, Rule of Law and Control of Corruption. KEYWORDS: Economic growth, Entrepreneurship, Moderating, Institutional quality.

Finance-institution-growth trilogy: time-series insights from South Africa

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Clement Olalekan Olaniyi ◽  
Adebayo Adedokun
Keyword(s):  
Economic Growth ◽  
South Africa ◽  
Positive Impact ◽  
Institutional Quality ◽  
Empirical Examination ◽  
Content Type ◽  
Distributed Lag ◽  
Long Run ◽  
Short Run ◽  
The Impact

PurposeThis study examines the moderating effect of institutional quality on the finance-growth nexus in South Africa from 1986 to 2015.Design/methodology/approachThis study adopts unit root tests, cointegration test and autoregressive distributed lag (ARDL) model.FindingsThe findings reveal that institutional quality constitutes a drain to the growth benefits of financial development (FD) in South Africa in the short-run while FD and institutional quality converge to enhance growth process of the country in the long-run. Also, the threshold of institutional quality beyond which institution stimulates strong positive impact of finance on growth is estimated to be 6.42 on a 10-point scale.Practical implicationsThis study, therefore, suggests that institutional quality matters in the way FD influences economic growth in South Africa. Hence, stakeholders are encouraged to trace and block lapses and loopholes in the institutional framework guiding financial system in South Africa so as to maximize growth benefits of FD.Originality/valueThis study contributes to the extant studies by introducing a country-specific analysis into the empirical examination of how institutional quality influences the impact of FD on economic growth. Also, this study deviates from other studies by determining the threshold of institutional quality beyond which FD stimulates strong positive effect on economic growth in South Africa

scholarly journals The impact of savings on economic growth in a developing country (the case of Kosovo)

2021 ◽  
Vol 10 (1) ◽  
Author(s):  
Artur Ribaj ◽  
Fitim Mexhuani
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
Quantitative Research ◽  
Positive Impact ◽  
Causality Test ◽  
Cointegration Tests ◽  
Savings Rate ◽  
Augmented Dickey Fuller ◽  
The Impact

AbstractThe correlation between savings and economic growth has been the subject of research for some well-known economists. This study provides further insight on such correlation by examining the case of Kosovo from both a qualitative and quantitative research methodology. The data used was from 2010 to 2017 and has been analyzed using the augmented Dickey-Fuller tests, Johansen cointegration tests, and Ganger causality test. The test of the unit root confirms stationarity, and the regression results showed that deposits have a significant positive impact on Kosovo’s economic growth, because savings stimulate investment, production, and employment and consequently generate greater sustainable economic growth. Furthermore, loans and remittances also help boost the economy of Kosovo through their direct impact on investment. This paper confirms that countries whose national savings rate is high are not dependent on foreign direct investment; consequently, the risk arising from volatile foreign direct investment decreases significantly.

Re-examining the Impact of Financial Development on the Economic Growth of North Cyprus Through the Moderating Role of the Education Sector

2020 ◽  
Author(s):  
Nuru Giritli ◽  
Demet Beton Kalmaz
Keyword(s):  
Economic Growth ◽  
Causal Relationship ◽  
Financial Development ◽  
Unit Root Test ◽  
Education Sector ◽  
Causality Test ◽  
Financial Depth ◽  
Multiplier Effect ◽  
Sustainable Economic Growth ◽  
The Impact

Abstract This study examines the impact of financial development on economic growth with the multiplier effect of the higher education by employing yearly data covering the years between 1990 and 2018 measured in TL. The results reached could shape the policies in achieving sustainable economic growth. Co-integration between the series are tested with ARDL based bounds test; since Zivot-Andrews structural unit root test results showed that variables are integrated at different orders. Furthermore, FMOLS and DOLS are applied to check for robustness. Moreover, Toda-Yamamoto Causality test is employed to test for the causal relationship between the series. Results show that there is a bidirectional causal relationship between financial depth and economic growth; and unidirectional causal relationships from money supply to financial depth, from economic growth and financial depth to education sector. Diagnostic and stability tests results confirm the reliability and stability of the parameters of the model employed.

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