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.

Globalization, role of institutions and economic performance in Indian economy

2019 ◽  
Vol 11 (1) ◽  
pp. 82-100 ◽  
Author(s):  
Madhu Sehrawat ◽  
A.K. Giri
Keyword(s):  
Economic Growth ◽  
Economic Performance ◽  
Time Series Data ◽  
Empirical Support ◽  
Institutional Quality ◽  
Series Data ◽  
Content Type ◽  
Indian Economy ◽  
Integration Test ◽  
Short Run

PurposeUsing time series data for the period 1982-2016, this study aims to explore the effect of globalization, institutional quality on economic performance for Indian economy by endogenizing financial development.Design/methodology/approachThe stationarity properties of the variables are tested by Saikkonen and Lütkepohl unit root test, and the co-integration test proposed by Bayer–Hanck (2013) is used to check the long- and short-run relationship among the variables. The robustness is established by autoregressive distributed lag approach (ARDL), and the Granger causality test is used to assess the causal relationship among the variables.FindingsThe empirical findings indicate the existence of the co-integrating relationship among the variables, and the ARDL estimates reveal that both globalization and institutional quality act as important key drivers for India’s economic performance. However, the institutional quality does not affect the short-run economic growth.Research limitations/implicationsThe study finds that institutional quality and globalization index are crucial to accelerate economic performance. Therefore, policy efforts should be focused on the improvement of these indicators by offering protection of property rights, reduction in government corruption, reducing political instability, price stability and stable macroeconomic environment. This study recommends that policy should be geared toward development of financial sector, promotion of financial integration, which will create the environment for the efficient allocation of credit.Originality/valueThis study provides empirical support for the proposition that both globalization and institutional quality matter for India’s emerging economic growth by taking account of the structural break.

scholarly journals Foreign Aided: Why Democratization Brings Growth When Democracy Does Not

2013 ◽  
Vol 45 (1) ◽  
pp. 53-71 ◽  
Author(s):  
Jacob Gerner Hariri
Keyword(s):  
Economic Growth ◽  
Foreign Aid ◽  
Growth Effect ◽  
New Democracies ◽  
Internal Factors ◽  
Positive Growth

There is an unresolved puzzle in research on the economics of democracy. While there is consensus that democracy is not generally associated with higher rates of economic growth, recent studies have found that democratization is followed by growth. But why shouldbecominga democracy bring growth ifbeingone does not? This article shows that a substantial and immediate influx of foreign aid into new democracies accounts for the positive growth effect of democratization. The domestic regime characteristics of neither democracy nor democratization therefore seems to bring growth. The importance of aid in explaining the democratization-growth nexus underscores that democratizations do not occur in vacuum and cannot be fully understood from internal factors alone.

Monetary policy regimes and growth revisited: evidence from a de facto classification

2019 ◽  
Vol 71 (4) ◽  
pp. 908-929
Author(s):  
Kin-Ming Wong ◽  
Terence Tai-Leung Chong
Keyword(s):  
Economic Growth ◽  
Monetary Policy ◽  
Inflation Targeting ◽  
Growth Effect ◽  
Empirical Estimation ◽  
New Classification ◽  
Policy Regimes ◽  
Exchange Rate Targeting ◽  
Positive Growth ◽  
Robust Evidence

Abstract Pioneered by New Zealand in 1990, a growing number of countries have adopted the practice of inflation targeting, the international experience of which has been reported as satisfactory. However, existing empirical evidence fails to support inflation targeting as having a positive growth effect. To provide further evidence, this study adopts a new classification system for monetary policy regimes that allows the empirical estimation of the effect of inflation targeting on economic growth in comparison with its main alternative, exchange rate targeting. Our study, which covers more than 100 countries for the 35 years from 1974 to 2009, presents robust evidence that inflation targeting promotes economic growth.

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 Geographic Endowment, Corruption, and Economic Development

2018 ◽  
Vol 9 (1) ◽  
pp. 1
Author(s):  
Sazzadul Arefin
Keyword(s):  
Economic Growth ◽  
Economic Development ◽  
Instrumental Variable ◽  
Institutional Quality ◽  
Developed Countries ◽  
Cultural Factors ◽  
Variable Approach ◽  
Cross Country ◽  
Instrumental Variable Approach

Corruption plays an important role in determining the effectiveness and quality of the institution, and growth. This paper investigates the linkage between corruption, various measures of geographical endowments and economic growth. I use corruption as a proxy for institutional quality and try to solve the endogeneity problem by Instrumental Variable approach as 2SLS for panel data for a sample of 192 countries and showed that corruption matters for economic growth. The results indicate that graphical endowments explain cross-country variation in economic development through their effect on corruption even when I control for other historical and cultural factors. Thus, when considering making policy for developing or developed countries much attention should be paid to this fact.

Innovation and Economic Growth in Sub-Saharan Africa: Why Institutions Matter? An Empirical Study Aross 37 Countries

2020 ◽  
pp. 097674792091511
Author(s):  
Dejene Mamo Bekana
Keyword(s):  
Economic Growth ◽  
Direct Effect ◽  
Economic Performance ◽  
Strong Support ◽  
Institutional Quality ◽  
Sub Saharan Africa ◽  
Empirical Measures ◽  
Governance Quality ◽  
Cross Country ◽  
Sub Saharan

Based on empirical panel data for a sample of 37 sub-Saharan African economies for 1996–2016, this inquiry examines the extent to which institutional quality explains the existing cross-country difference in economic performance in sub-Saharan Africa. While most of the existing studies focus only on the direct effect of institutional quality, this article investigates the direct and indirect effects of institutions. It also reflects on impact of the interaction between institutional quality and innovation on economic growth in developing countries. The evidence provides very strong support for the direct effect of institutional quality development on economic performance as well as for its indirect effect via its impact on innovation. However, the results do not support theories that argue in favour of interaction between institutional quality such as democracy, governance quality and innovation, thereby pointing to the need for better calibration of the numerous existing theoretical postulations and related empirical measures. JEL: D70, D72, O15, O30, O31, O55

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.

Sustainable Development i n ECOWAS: A Super Highway Study

2018 ◽  
Vol 9 (9) ◽  
pp. 815-824
Author(s):  
Itotenaan Henry Ogiri ◽  
Keyword(s):  
Economic Growth ◽  
West Africa ◽  
Economic Integration ◽  
Regional Integration ◽  
Political Stability ◽  
Policy Formulation ◽  
Theory And Practice ◽  
Empirical Literature ◽  
Survey Method ◽  
Study Results

Over the last four decades, countries in West Africa sub-region have continued to search for an economic integration model through which its socio-economic prosperity will be enhanced. However, despite numerous sub-regional summits, little has been achieved to date in terms of sustainable economic development thus securing an almost permanent seat for the region as one of the world poorest. While regional integration is increasingly being accepted as essential in facilitating socio-economic growth, various accounts from the extant literature indicates that the lack of political will by ECOWAS leaders, among other concomitant factors, have led to the region’s inability to drive home the lofty ideas as contained in its numerous protocols. This paper examines the critical factors that have hampered socio-economic growth in the West Africa sub-region and highlights the imperative of an ECOWAS Super Highway as a driving force for the rapid transformation of a region so rich in human and materials resources yet is nested in a web of abject poverty. The study adopts survey method for its data collection. Data were collected by means of self-designed questionnaire designed on a 5-point Likert scale. The SPSS data software was used in the empirical analysis. Three main hypotheses were formulated and tested for this study. Results from this study indicate a strong association between a super Highway and improve economic integration in the ECOWAS sub-region. Our study further reveals that a Super Highway will serve to promote political stability within the ECOWAS sub-region, although not to a significant extent. Our findings also show that the challenge of language will be highly mitigated if an ECOWAS Super Highway is in place as this will aid in bridging the cultural divide that has existed between its Anglo-phone and Franco-Phone member-states. As a policy-driven research, this study has implications for theory and practice. The study makes original contribution to knowledge as the empirical literature is enriched. Furthermore, the study provides a platform that brings the ECOWAS Super Highway conundrum to both regional and International conversations. Finally, the paper provides an opportunity for further research to assist regional policy formulation particularly as it affects cross-border transportation system within the ECOWAS sub-region.

Regional integration from “below” in West Africa: A study of transboundary town-twinning of Idiroko (Nigeria) and Igolo (Benin)

2016 ◽  
Vol 6 (3) ◽  
pp. 1-19 ◽  
Author(s):  
Olukayode A. Faleye
Keyword(s):  
West Africa ◽  
Regional Integration ◽  
Qualitative Methodology ◽  
Descriptive Analysis ◽  
West African ◽  
African Culture ◽  
Political Implications ◽  
New Development ◽  
Government Records

[Full article is in English]English: This article examines the phenomenon of town-twinning between Idiroko (Nigeria) and Igolo (Benin). While transboundary town twinning is the integration of settlements across distinct state territories—an emerging pattern of borderland urban evolution—this seems to be a new impact of the colonially determined borders in West Africa. Despite the challenges posed by the partition of West African culture areas, town twinning has more recently turned into an established form of regional integration based on a “bottom-up” rather than “top-down” approach in the region. Using qualitative methodology based on descriptive analysis of oral interviews, government records, geographical data, as well as diverse literature, this paper uncovers the role of “borderlanders” in negotiating borders through increased non-state transnational sociospatial cooperation and networking. Apart from altering the traditional state-centric territoriality, this new development may entail broader economic and socio-political implications in the region.Spanish: Este artículo examina el hermanamiento de las ciudades de Idiroko (Nigeria) e Igolo (Benin). Mientras que el hermanamiento de ciudades transfronterizas es la integración de asentamientos más allá de los distintos territorios estatales—un patrón emergente en la evolución urbana de las regiones fronterizas—esto parece ser un nuevo impacto en las fronteras colonizadas en África Occidental. A pesar de los retos de la división cultural en África Occidental, el hermanamiento de ciudades se ha convertido recientemente en una forma de integración regional con enfoque “de abajo hacia arriba” más que “de arriba hacia abajo.” Empleando una metodología cualitativa basada en un análisis de entrevistas orales, archivos gubernamentales, datos geográfi cos y una literatura diversa, este artículo revela el rol de las regiones fronterizas en negociaciones transfronterizas de cooperación y de formación de redes socio-espaciales no estatales. Además de alterar la territorialidad tradicional centrada en el estado, este nuevo desarrollo puede generar implicaciones económicas y socio-políticas más amplias en la región.French: Cet article examine le phénomène des villes jumelles d’Idiroko (Nigéria) et d’Igloo (Bénin). Alors que les villes jumelles transfrontalières sont le résultat de l’intégration d’implantations au-delà de territoires étatiques distincts -un schéma émergeant d’évolution urbaine en région frontalière-, ce cas semble être un nouvel impact des frontières déterminées par la colonisation en Afrique de l’Est. Malgré les défi s posés par la partition des aires culturelles de l’Afrique de l’Est, les villes jumelles se sont converties plus récemment en une forme établie d’intégration régionale fondée sur une approche régionale de bas en haut plutôt que de haut en bas. À partir de l’’usage d’une méthodologie qualitative basée sur une analyse descriptive d’entretiens, d’archives gouvernementales, de données géographiques ainsi que sur une littérature diverse, cet article met à jour le rôle des régions frontalières dans la négociation des frontières à travers la coopération et la formation de réseaux socio-spatiaux trans nationaux non étatiques. En plus de modifier la territorialité traditionnelle centrée sur l’État, ce fait nouveau peut entraîner des implications économiques et socio-politiques plus larges dans la région.

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