scholarly journals The Impacts of Monetary and Fiscal Policies on Economic Growth in Malaysia, Singapore and Thailand

2020 ◽  
Vol 9 (1) ◽  
pp. 114-130
Author(s):  
Chai-Thing Tan ◽  
Azali Mohamed ◽  
Muzafar Shah Habibullah ◽  
Lee Chin
Keyword(s):  
Economic Growth ◽  
Least Squares ◽  
Least Squares Method ◽  
Negative Impact ◽  
Positive Impact ◽  
Ordinary Least Squares ◽  
Jel Classification ◽  
Fiscal Policies ◽  
Distributed Lag ◽  
The Impact

This article analyses the impact of monetary and fiscal policies on economic growth in Malaysia, Singapore and Thailand from 1980:Q1 to 2017:Q1. Autoregressive distributed lag (ARDL) approach is employed to determine the long-run relationship. Further, a range of econometric models, such as fully modified least squares method (FMOLS), canonical cointegration regression (CCR) and dynamic ordinary least squares method (DOLS), are applied to check the robustness. The results are stable and robust as all the models yield consistency result. The main findings in this study demonstrate that: (a) interest rate had a negative impact on economic growth in three selected countries. (b) Government spending had a negative impact on economic growth in Malaysia and Singapore, but had a positive impact in Thailand. (c) Monetary policy is more effective in Malaysia and Singapore, while fiscal policy is more effective in Thailand. JEL Classification: E52, E58, E62, C01

scholarly journals The Impact of Public Debt on the Economic Growth of Jordan: An Empirical Study (2000- 2015)

2017 ◽  
Vol 6 (2) ◽  
pp. 114 ◽  
Author(s):  
Tawfiq Ahmad Mousa ◽  
Abudallah. M. LShawareh
Keyword(s):  
Economic Growth ◽  
Empirical Study ◽  
Regression Model ◽  
Least Squares ◽  
Public Debt ◽  
Least Squares Method ◽  
Negative Impact ◽  
External Debt ◽  
Using Data ◽  
The Impact

In the last two decades, Jordan’s economy has been relied on public debt in order to enhance the economic growth. As such, an understanding  of the dynamics between public debt and economic growth is very important in addressing the obstacles to economic growth. The study investigates the impact of public debt on economic growth using data from 2000 to 2015. The study employs least squares method and regression model to capture the impact of public debt on economic growth. The results of the analysis indicate that there is a negative impact of total public debt, especially the external debt on economic growth. 

scholarly journals The Impact of Industrialization, Trade Openness, Financial Development, and Energy Consumption on Economic Growth in Indonesia

Economies ◽  
2021 ◽  
Vol 9 (4) ◽  
pp. 174
Author(s):  
Khalid Eltayeb Elfaki ◽  
Rossanto Dwi Handoyo ◽  
Kabiru Hannafi Ibrahim
Keyword(s):  
Economic Growth ◽  
Energy Consumption ◽  
Least Squares ◽  
Financial Development ◽  
Correction Term ◽  
Trade Openness ◽  
Ordinary Least Squares ◽  
Distributed Lag ◽  
Long Run ◽  
The Impact

This study aimed to scrutinize the impact of financial development, energy consumption, industrialization, and trade openness on economic growth in Indonesia over the period 1984–2018. To do so, the study employed the autoregressive distributed lag (ARDL) model to estimate the long-run and short-run nexus among the variables. Furthermore, fully modified ordinary least squares (FMOLS), dynamic least squares (DOLS), and canonical cointegrating regression (CCR) were used for a more robust examination of the empirical findings. The result of cointegration confirms the presence of cointegration among the variables. Findings from the ARDL indicate that industrialization, energy consumption, and financial development (measured by domestic credit) positively influence economic growth in the long run. However, financial development (measured by money supply) and trade openness demonstrate a negative effect on economic growth. The positive nexus among industrialization, financial development, energy consumption, and economic growth explains that these variables were stimulating growth in Indonesia. The error correction term indicates a 68% annual adjustment from any deviation in the previous period’s long-run equilibrium economic growth. These findings provide a strong testimony that industrialization and financial development are key to sustained long-run economic growth in Indonesia.

Mandatory CSR expenditure and stock return

2020 ◽  
Vol 28 (6) ◽  
pp. 951-975
Author(s):  
Asit Bhattacharyya ◽  
Md Lutfur Rahman
Keyword(s):  
Least Squares ◽  
Stock Returns ◽  
Least Squares Method ◽  
Negative Impact ◽  
Generalized Method Of Moments ◽  
Ordinary Least Squares ◽  
Reverse Causality ◽  
Endogeneity Bias ◽  
Content Type ◽  
The Impact

Purpose India has mandated corporate social responsibility (CSR) expenditure under Section 135 of the Indian Companies Act, 2013 – the first national jurisdiction to do so. The purpose of this paper is to examine the impact of mandated CSR expenditure on firms’ stock returns by using actual CSR spending data, whereas the previous studies mostly focus on voluntary CSR proxied by CSR scores. Design/methodology/approach The authors estimate their baseline regression by using ordinary least squares(OLS) method. Although the baseline regression involving CSR expenditure and stock returns using ordinary least squares method are estimated, endogeneity and reverse causality biases are addressed by using two-stage least squares and generalized method of moments approaches. These approaches contribute mitigating endogeneity bias and biases associated with unobserved heterogeneity and simultaneity. Findings The findings document that mandatory CSR expenditure has a negative impact on firms’ stock returns which supports the “shareholders” expense’ view. This result remain robust after controlling for endogeneity bias and the use of both standard and robust test statistics. The authors however observe that this result holds for the firms with actual CSR expenditure equal to the mandated amount but does not hold for the firms with actual CSR expenditure greater than the mandated amount. Therefore, the authors provide evidence that CSR expenditure’s impact on stock returns depends on whether firms simply comply the regulation or voluntarily chose an amount of CSR expenditure above the mandated amount. Originality/value The primary contribution is to present a valid and robust evidence of negative effect of mandated CSR spending on firms’ stock returns when the mandatory CSR spending rule is already in place. This study contributes by examining the impact of mandated CSR spending on stock during post-implementation period (2015-2017), whereas other studies by Dharampala and Khanna (2018); Kapoor and Dhamija (2017); and Mukherjee et al. (2018) mainly examined the impact of legislation on Indian CSR. The authors use mandated actual CSR expenditure, whereas previous studies mostly focus on voluntary CSR proxied by CSR scores.

scholarly journals Government Size and Economic Growth in Botswana: An Application of Nonlinear Armey Curve Analysis

2018 ◽  
Vol 5 (1) ◽  
Author(s):  
Narain Sinha ◽  
Kefilwe Allister Kalayakgosi
Keyword(s):  
Economic Growth ◽  
Polynomial Regression ◽  
Negative Impact ◽  
Positive Impact ◽  
Quadratic Function ◽  
Ordinary Least Squares ◽  
Series Data ◽  
Government Size ◽  
Government Revenue ◽  
The Impact

This study has investigated the impact of government size on economic growth in Botswana using annual time series data for the period 1973 to 2012. The study adopted a framework analysis based on a quadratic function/second degree polynomial regression employed by Herath (2012). Ordinary Least Squares (OLS) method was used for the regression analysis. The results obtained are not consistent with the empirical and theoretical views as small government size has a negative impact on economic growth while a large government size has a positive impact on economic growth. The results obtained in the study were opposite to the views of most of the studies conducted. Nominal Total government expenditure is used as a measure of government size and growth of nominal GDP is used to measure economic growth. The study also employed other control variables which affect growth like government revenue as a percentage of GDP, Gross capital formation (GCF) as a percentage of GDP as proxy for investment rate and growth of paid employees as a proxy for labor force growth. The results showed that government revenue and GCF had a negative impact on economic growth but GCF was insignificant. Growth of paid employees on the other hand had a positive impact on economic growth. The study aimed at investigating the existence of the Armey curve in a developing country like Botswana. Due to government size having a negative impact on economic growth and government size squared having a positive impact on economic growth the conclusion is that the Armey curve does not exist in Botswana.

scholarly journals FDI-Led-Growth in Malaysia: Autoregressive Distributed Lag (ARDL) Bounds Testing Approach

2018 ◽  
Vol 11 (11) ◽  
pp. 46
Author(s):  
Jerome Kueh ◽  
Yong Sze Wei
Keyword(s):  
Economic Growth ◽  
Financial Crisis ◽  
Global Financial Crisis ◽  
Negative Impact ◽  
Positive Impact ◽  
Bounds Testing ◽  
Policy Makers ◽  
Distributed Lag ◽  
Autoregressive Distributed Lag ◽  
The Impact

This study intends to investigate the validity of the foreign direct investment, FDI-led-growth hypothesis in Malaysia in this era. Autoregressive Distributed Lag (ARDL) bounds test approach is adopted to examine the impact of FDI inflow towards growth of Malaysia based on annually data from 1980 to 2016. Empirical results indicate that FDI inflow has significant positive impact on economic growth. This implies that FDI inflow remain important tool for stimulating economic growth of Malaysia. In addition, there is a negative impact of FDI inflow on economic growth during the 1997 Asian Financial crisis and positive impact during the 2008 Global Financial crisis. In terms of policy recommendation, the policy makers should continue to develop strategies to further attract FDI that will contribute to increasing the productivity in the country.

Political instability and its impact on economic growth: the case of Jordan

2019 ◽  
Vol 18 (3) ◽  
pp. 366-380 ◽  
Author(s):  
Malak Samih Abu Murad ◽  
Nooh Alshyab
Keyword(s):  
Economic Growth ◽  
Design Methodology ◽  
Negative Impact ◽  
Positive Impact ◽  
Political Instability ◽  
Ordinary Least Squares ◽  
Small Country ◽  
Content Type ◽  
The Impact ◽  
Least Squares Approach

Purpose Political instability may have far-reaching implications for economic performance. This paper aims to analyze the impact of political instability on economic growth by focusing on the case of Jordan, a small country located in the Middle East, which represents a highly political instable region. Design/methodology/approach The analysis is performed by regressing different indicators for internal and external political instability on economic growth for the period from 1980 to 2015 using the fully modified ordinary least squares approach. Findings The results point at a significant impact of political instability on the economic growth of the country in all the specifications considered; in particular, the analysis reveals a positive impact of external political instability indexed by border countries’ political instability and a negative impact of internal political instability, as proxied by the number of crimes and cabinet changes. Further, regarding the effect of the level of freedom, the authors find evidence for the so-called conflict perspective. Originality/value This paper is original and relevant for two main reasons. First, it adds to the debate on the effects of political instability on economic growth, and hereby, disentangles the effects of internal and external political instability. Second, it makes an important contribution by focusing on the case of Jordan, which has received little attention in the literature on political instability so far, even though political instability is a constant threat to the country.

scholarly journals The Impact of Bank-Based and Market-Based Financial Development on Economic Growth: Time-Series Evidence From the United Kingdom

2016 ◽  
Vol 16 (2) ◽  
pp. 389-410
Author(s):  
S. Nyasha ◽  
N. M. Odhiambo
Keyword(s):  
Economic Growth ◽  
United Kingdom ◽  
Financial Development ◽  
Negative Impact ◽  
Positive Impact ◽  
Growth Time ◽  
Bounds Testing ◽  
Distributed Lag ◽  
The United Kingdom ◽  
The Impact

This paper examines the dynamic impact of both bank-based and market-based financial development on economic growth in the United Kingdom (UK) during the period 1980–2012, using the autoregressive distributed lag bounds testing approach. Given the complexity of the financial structure in the United Kingdom, various financial development indicators have been used to construct bank-based and market-based financial development indices. The empirical results of this study show that while market-based financial development has a positive impact on economic growth in the United Kingdom, bank-based financial development has a distinct negative impact. These results apply irrespective of whether the regression analysis is conducted in the long run or in the short run.

scholarly journals Impact of Exchange Rate on Economic Growth of Bangladesh

2021 ◽  
Vol 6 (3) ◽  
pp. 173-175
Author(s):  
Md. Fazlul Huq Khan
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Exchange Rate ◽  
Direct Investment ◽  
Least Squares Method ◽  
Positive Impact ◽  
Ordinary Least Squares ◽  
Nominal Exchange Rate ◽  
Series Data ◽  
The Impact

This paper investigates the impact of inflation, nominal exchange rate, foreign direct investment, and unexpected event shock on the economic growth of Bangladesh by using the time series data from 1990 through 2020. Augmented Dickey-Fuller and Phillips-Perron Unit Root Test used to identify unit-roots existence and check the stationary of variables. The Ordinary Least Squares method is applied to determine the relationship between the dependent variable and independent variables. The results revealed that the exchange rate and foreign direct investment have significantly affected the country's economic growth. Inflation, FDI, and exchange rate positive impact, whereas unexpected events like Covid-19, natural disasters, etc., negatively affect the economic development of Bangladesh. The study can be helpful for the policy makers to identify, formulate and implement the effect policies for the economic growth of the country.

Evaluating the impact of energy and environment on economic growth in BRI countries

2022 ◽  
pp. 0958305X2110738
Author(s):  
Muhammad Noshab Hussain ◽  
Zaiyang Li ◽  
Abdul Sattar ◽  
Muhammad Ilyas
Keyword(s):  
Economic Growth ◽  
Energy Consumption ◽  
Carbon Emissions ◽  
Negative Impact ◽  
Positive Impact ◽  
Ordinary Least Squares ◽  
Empirical Estimation ◽  
Renewable Energy Consumption ◽  
Income Groups ◽  
The Impact

This study investigates the impact of renewable energy consumption (REC), nonrenewable energy consumption (NREC), and carbon emissions on economic growth in 133 Belt and Road Initiative (BRI) countries from 1996 to 2020. We divided our sample into four income groups. For empirical estimation, this study employs panel quantile regression (PQR), and fully modified ordinary least squares (FMOLS) estimation techniques. The results confirm that REC have a positive impact on economic growth and NREC has a negative impact on economic growth. A 1% increase in REC and carbon emissions results in an increase in economic growth of 0.108% and 1.085%, respectively. A 1% increase in NREC reduces economic growth by 0.263% in the full sample countries. There are regional differences, although NREC has a positive impact on economic growth in all income groups in the long run. These novel empirical findings will help policymakers design energy policies to fulfill the target of economic growth in BRI countries.

The nexus between financial development and energy consumption: Estimating the role of foreign direct investment, economic growth and urbanization

2021 ◽  
pp. 0958305X2110453
Author(s):  
Jaleel Ahmed ◽  
Shuja ur Rehman ◽  
Zaid Zuhaira ◽  
Shoaib Nisar
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Energy Consumption ◽  
Financial Development ◽  
Latin American ◽  
Direct Investment ◽  
Negative Impact ◽  
Positive Impact ◽  
Supply And Demand ◽  
The Impact

This study examines the impact of financial development on energy consumption for a wide array of countries. The estimators used for financial development are foreign direct investment, economic growth and urbanization. The study employed a panel data regression on 136 countries with time frame of years 1990 to 2019. The model in this study deploys system GMM technique to estimate the model. The results show that financial development has a significant negative impact on energy consumption overall. Foreign direct investment and urbanization has significant impact on energy consumption. Also, economic growth positive impact on energy consumption its mean that economic growth promotes energy consumption. When dividing further the sample into different groups of regions such as Asian, European, African, North/Latin American and Caribbean countries then mixed results related to the nexus between financial development and energy consumption with respect to economic growth, urbanization and foreign direct investment. The policymakers in these different groups of countries must balance the relationship between energy supply and demand to achieving the sustainable economic development.

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