Tourism-Led Growth Hypothesis: A New Global Evidence

2017 ◽  
Vol 59 (3) ◽  
pp. 304-311 ◽  
Author(s):  
Chor Foon Tang ◽  
Eu Chye Tan
Keyword(s):  
Economic Growth ◽  
Method Of Moments ◽  
Generalized Method Of Moments ◽  
Political Stability ◽  
Dynamic Panel ◽  
Beneficial Impact ◽  
The Relationship ◽  
Different Levels ◽  
Growth Hypothesis ◽  
Global Evidence

The primary aim of this study is to determine whether the tourism-led growth hypothesis is globally valid by accounting for countries’ income levels and their institutional qualities, against a panel dataset of 167 countries. The institutional qualities referred to are political stability and corruption control. We employ the dynamic panel generalized method of moments (GMM) approach to examine the relationship. It can be inferred from the exercise that tourism positively contributes to economic growth but the effect varies across countries at different levels of income and institutional qualities. Therefore, the effect of tourism on economic growth is contingent on levels of income and institutional qualities of the host tourism countries. Policy initiatives that aim to promote and strengthen institutional qualities should be undertaken for a country to enjoy the beneficial impact of tourism on economic growth and development.

scholarly journals An econometric study of the role of the political stability on the relationship between democracy and economic growth

2020 ◽  
Vol 67 (2) ◽  
pp. 187-206
Author(s):  
Nedra Baklouti ◽  
Younes Boujelbene
Keyword(s):  
Economic Growth ◽  
Data Model ◽  
Generalized Method Of Moments ◽  
Political Stability ◽  
Dynamic Panel Data ◽  
The Political ◽  
Dynamic Panel ◽  
Mena Countries ◽  
The Relationship

This article examines the nexus between democracy and economic growth while taking into account the role of political stability, using dynamic panel data model estimated by means of the Generalized Method of Moments (GMM) over the period 1998 to 2011 for 17 Middle East and North Africa (MENA) countries. Our empirical results showed that there is a bidirectional causal relationship between democracy and economic growth. Moreover, it was found that the effect of democracy on economic growth depends on the political stability. The results also indicated that there is important complementarity between political stability and democracy. In fact, political stability is a key determinant variable of economic growth. Eventually, democracy and political stability, taken together, have a positive and statistically significant effect on economic growth. This finding suggests that, if accompanied by a stable political system, democracy can contribute to the economic growth of countries. Thus, the MENA governments should use policies to promote political stability in the region.

scholarly journals Comparing Credit Risk in Islamic and Conventional Banking Using Bank-Level Panel Data

2020 ◽  
Vol 11 (2) ◽  
pp. 235-262
Author(s):  
Akhmad Akbar Susamto ◽  
Danes Quirira Octavio ◽  
Dyah Titis Kusuma Wardani
Keyword(s):  
Economic Growth ◽  
Credit Risk ◽  
Method Of Moments ◽  
Generalized Method Of Moments ◽  
Dynamic Panel ◽  
Gmm Estimator ◽  
Panel Regressions ◽  
Conventional Banks ◽  
Risk Determinants ◽  
Asset Size

Abstract: This paper investigates if there is a difference in the level of the credit risk of Islamic as compared to the level of credit risk of conventional banks. This paper further investigates the importance of various credit risk determinants and possible differences in how such determinants affect credit risk in Islamic and conventional banking industries. This paper employs dynamic panel regressions using system GMM estimators. The sample includes 11 Islamic and 95 conventional banks in Indonesia throughout 2003-2018. Based on the results, it is concluded that there is no difference in the level of the credit risk of Islamic as compared to that of conventional banks. It is also concluded that credit risk is significantly affected by current and lagged asset size, lagged financing, current profitability, lagged economic growth, and current inflation. The effect of lagged financing, current profitability, and lagged economic growth is different in Islamic and conventional banking.Abstrak: Makalah ini menganalisis apakah terdapat perbedaan antara tingkat risiko kredit pada perbankan syariah dan tingkat risiko kredit pada perbankan konvensional. Makalah ini selanjutnya juga menganalisis signifikansi faktor-faktor yang diduga mempengaruhi risiko kredit dan kemungkinan perbedaan pengaruh faktor-faktor tersebut terhadap risiko kredit pada perbankan syariah dibandingkan pada perbankan konvensional. Makalah ini menggunakan regresi panel dinamis dengan system generalized method of moments (GMM) estimator. Sampel dalam makalah ini mencakup 11 bank syariah dan 95 bank konvensional di Indonesia selama periode 2003-2018. Berdasarkan hasil analisis, dapat disimpulkan bahwa tidak terdapat perbedaan perbedaan antara tingkat risiko kredit pada perbankan syariah dan tingkat risiko kredit pada perbankan konvensional. Begitu pula, dapat disimpulkan bahwa risiko kredit secara signifikan dipengaruhi oleh ukuran aset tahun ini dan tahun lalu, pembiayaan tahun lalu, profitabilitas tahun ini, pertumbuhan ekonomi tahun lalu dan inflasi tahun ini. Pengaruh pembiayaan tahun lalu, profitabilitas tahun ini, dan pertumbuhan ekonomi tahun lalu, secara khusus berbeda pada perbankan syariah dibandingkan pada perbankan konvensional.

scholarly journals The effect of renewable energy use and economic growth on pollution in the EUROZONE

2017 ◽  
Vol 6 (3) ◽  
pp. 88 ◽  
Author(s):  
Panagiotis Nikolaos Fotis ◽  
Victoria Pekka
Keyword(s):  
Economic Growth ◽  
Air Pollution ◽  
Renewable Energy ◽  
Energy Saving ◽  
Method Of Moments ◽  
Energy Use ◽  
Energy Intensity ◽  
Generalized Method Of Moments ◽  
Environmental Pollutants ◽  
Dynamic Panel

The aim of this paper is to empirically examine the effect of renewable energy use and economic growth on pollution within EUROZONE from 2005 to 2013 by utilizing Dynamic Panel Generalized Method of Moments approaches. The empirical results reveal that economic growth positively affects environmental pollutants. The use of renewable sources of energy negatively affects pollution. The more the renewable energy we use the less the air pollution. However, energy saving and energy intensity contribute to more air pollution.

scholarly journals Tax revenue, expenditure, and economic growth: An analysis of long-run relationships

2017 ◽  
Vol 24 (03) ◽  
pp. 04-26
Author(s):  
Lien Nguyen Phuong ◽  
Thanh Su Dinh
Keyword(s):  
Economic Growth ◽  
Method Of Moments ◽  
Generalized Method Of Moments ◽  
Tax Revenue ◽  
Dynamic Panel ◽  
Causality Test ◽  
Long Run ◽  
Integration Test ◽  
The Impact

Focusing on the investigation of “long-term” relationship between tax revenue, expenditure, and economic growth, this paper employs the Granger causality test and finds that the linkage between tax revenue and spending is a bi-directional causal correlation. Furthermore, applying Persyn and Westerlund’s (2008) co-integration test allows for corroboration of existence of long-run cointegration linkages among outcome of economy and the three variables. In addition, by adopting two-step system generalized method of moments (SGMM) for a dynamic panel of 82 developed and developing countries during 16-year period (2000–2015), this research demonstrates that the impact of tax revenue and spending is substantial and ambiguous, depending on different groups of economies.

scholarly journals Assessing the Relationship between Efficiency, Capital and Risk of Commercial Banks in Bangladesh

2018 ◽  
Vol 14 (1) ◽  
pp. 55
Author(s):  
Nazmoon Akhter
Keyword(s):  
Method Of Moments ◽  
Commercial Banks ◽  
Generalized Method Of Moments ◽  
Operational Efficiency ◽  
Simultaneous Equation ◽  
Least Square ◽  
Dynamic Panel ◽  
Inconsistent Result ◽  
Relationship Of ◽  
The Relationship

Increased competition and problem loan in the banking sectors force banks to operate its activities more efficiently. However, bank’s efficiency, capital and risk are interrelated. The present study is made on assessing the inter-temporal relationship between efficiency, capital and risk of commercial banks in Bangladesh during the period 2011-2016 by setting simultaneous equation. The study uses three-stage least square model (3SLS) and dynamic panel generalized method of moments (GMM) model to estimate efficiency-capital-risk relationship. The study reports that both models provide consistent result regarding the relationship of bank’s operational efficiency with capital and risk and inconsistent result about the relationship between capital and risk. The study concludes that a U-shaped relationship is exited in the 3SLS model of efficiency-capital-risk relationship as banks’ operational efficiency and risk have positive relationship with capital and bank size, indicating that with increased capital and bank size, bank’s operational efficiency is improved at decreasing rate due to increase in bank’s risk.

scholarly journals Direct Versus Indirect Taxes: Impact on Economic Growth and Total Tax Revenue

2020 ◽  
Vol 11 (2) ◽  
pp. 146 ◽  
Author(s):  
Taufik Abd Hakim
Keyword(s):  
Economic Growth ◽  
Method Of Moments ◽  
Generalized Method Of Moments ◽  
Capital Gains ◽  
Tax Revenue ◽  
Positive Contribution ◽  
Tax Structure ◽  
Dynamic Panel ◽  
Gmm Estimation ◽  
Indirect Taxes

This study investigates the effects and consequences of both direct and indirect taxes on economic growth and total tax revenue in a panel of 51 countries over the period 1992 – 2016. The data were estimated using the dynamic panel generalized method of moments (GMM) estimation. The results indicate that direct taxes are significant and negatively correlated with the economic growth, while indirect taxes seem to have a positive but insignificant impact on the dependent variable. Additionally, this study also found a significant and positive contribution of direct taxes on the total tax revenue compared to indirect taxes. The conclusion is that tax structure based on direct taxes such as taxes on income, profit and capital gains is harmful to the economic growth, yet more efficient in terms of collecting the tax revenue in a country.

Re-examining Firm Size-profitability Nexus: Empirical Evidence from Non-financial Listed Firms in Nigeria

2017 ◽  
Vol 18 (3) ◽  
pp. 543-558 ◽  
Author(s):  
Clement Olalekan Olaniyi ◽  
Olayemi O. Simon-Oke ◽  
Olufemi Bodunde Obembe ◽  
Segun Thompson Bolarinwa
Keyword(s):  
Method Of Moments ◽  
Firm Size ◽  
Economies Of Scale ◽  
Generalized Method Of Moments ◽  
Research Work ◽  
Dynamic Panel ◽  
Listed Firms ◽  
Bidirectional Relationship ◽  
Econometric Methodology ◽  
The Relationship

The bulk of extant studies on the relationship between firm size and profitability focus on the effect of former on the latter, neglecting the possibility of feedback effect. This research work re-examines the direction of causality between firm size and profitability for 63 listed non-financial Nigerian firms for the period 1998–2010, using an innovative econometric methodology of a dynamic panel generalized method of moments to resolve the problem of endogeneity inherent in the relationship. The results establish a bidirectional relationship between firm size and profitability of firms in Nigeria. While firm size positively Granger-causes profitability, profitability, on the other hand, negatively Granger-causes firm size. This study therefore rebuts the popular assumption that causation only runs from firm size to profitability and not vice versa. The emerging conclusion drawn from this study is that profitability might be a vital tool to make firms grow faster if well managed as the economies of scale could also be induced.

scholarly journals The Determinants of Inflation in West Africa

2019 ◽  
pp. 100-105
Author(s):  
Diabaté Nahoussé
Keyword(s):  
Economic Growth ◽  
Growth Rate ◽  
West Africa ◽  
Money Supply ◽  
Method Of Moments ◽  
Generalized Method Of Moments ◽  
Annual Data ◽  
Dynamic Panel ◽  
Economic Growth Rate ◽  
Rate Of Increase

The objective of this study is to identify the determinants of inflation in West Africa, mainly in the WAEMU zone, in order to contribute to improving the conduct of monetary policy. The equation of the exchange of the Quantitative Theory of the Currency and the generalized method of moments (MMG) in dynamic panel is used. Annual data concerning six countries in West Africa and range from 1991 to 2015. The results of the estimation show that in addition to the economic growth rate and the money supply, the devaluation has a significant effect on inflation. As we can see, inflation is not systematically a monetary phenomenon in West Africa. The authorities must therefore seek to determine the optimal threshold for the rate of increase of the money supply.

scholarly journals Inequality and Economic Growth in Indonesia in The 2000’s

2018 ◽  
Vol 7 (2) ◽  
pp. 201-212
Author(s):  
Damayanti Simangunsong ◽  
Chen Kuang-Hui
Keyword(s):  
Economic Growth ◽  
Income Inequality ◽  
Method Of Moments ◽  
Negative Impact ◽  
Generalized Method Of Moments ◽  
Dynamic Panel ◽  
Gmm Estimator ◽  
One Step ◽  
The Government ◽  
The Right

The income inequality in Indonesia reached the highest level during the decentralization era and suspected to be the cause of the slowdown of the economic growth in the last five years to 2015. This paper investigates whether increasing inequality had a positive or negative impact on economic growth in Indonesia. Using dynamic panel and applying Generalized Method of Moments (GMM) estimator, the result concluded that there is a significant positive relationship between income inequality and economic growth. However, this study cannot draw a definite conclusion about the association for the different classes (bottom, middle, and top level) since only one-step system GMM is significant. Based on the result, it implies that the government should be more careful in regulating the inequality policy and understand more about the right mechanism of inequality and economy growth.DOI: 10.15408/sjie.v7i2.6177

Investigating Okun’s Law in Nigeria through the Dynamic Model

2018 ◽  
Vol 9 (6) ◽  
pp. 39-46
Author(s):  
Patrick Olufemi ADEYEYE ◽  
Anthonia T. ODELEYE ◽  
Olufemi Adewale ALUKO
Keyword(s):  
Economic Growth ◽  
Dynamic Model ◽  
Method Of Moments ◽  
Unemployment Rate ◽  
Generalized Method Of Moments ◽  
Output Growth ◽  
Causality Test ◽  
Policy Tool ◽  
Method Of Moments Estimation ◽  
The Relationship

 Unemployment is a persistent challenge for countries, especially the developing ones. Nigeria as a developing country faces a herculean task reducing the increasing spate of joblessness amongst her citizens. Okun’s law explains the relationship between unemployment and economic growth in an economy. This study therefore investigates Okun’s law in Nigeria between 1985 and 2015 through the dynamic model. The generalized method of moments estimation result reveals that that present and past output growth are negatively related to unemployment rate. However, only past output growth has a significant effect on unemployment rate. It also shows that past unemployment rate is significantly and positively associated with present unemployment rate. The Toda-Yamamoto Granger non-causality test finds that there is no causality between unemployment and economic growth. This study presents evidence to partially support Okun’s law of inverse relationship between unemployment and output growth and suggests that promoting economic growth can be a policy tool for reducing unemployment rate in Nigeria. 

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