Does Financial Inclusion Promote Human Development? Evidence from India

2021 ◽  
pp. 227868212110451
Author(s):  
Neha Arora ◽  
Naresh Kumar
Keyword(s):  
Human Development ◽  
Financial Inclusion ◽  
Banking Services ◽  
Indian Economy ◽  
Long Run ◽  
Speed Up ◽  
Bound Test ◽  
Hierarchy Process ◽  
The Relationship ◽  
Ardl Bound Test

The present study investigates the relationship between Financial Inclusion Index (FII) and Human Development Index (HDI) of Indian economy. The study developed FII for the Indian economy from 1991 to 2020 by using the dimensions of banking penetration, banking availability and usage of banking services. The well-known techniques of Analytical Hierarchy Process (AHP) and Technique of Preference by Similarity to Ideal Solution (TOPSIS) is used to develop FII. The ARDL bound test confirms the existence of a long-run relationship between financial inclusion and human development. Granger non-causality confirms the existence of bidirectional causality between financial inclusion and human development. As financial inclusion acts as a key for human development, government should adopt policies to speed up the financial inclusion process in India.

scholarly journals Investigating in the J-curve phenomenon in Tunisia- ARDL bound test approach

2020 ◽  
Vol 12 (5(J)) ◽  
pp. 23-32
Author(s):  
Elham Shubaita ◽  
Muhammad Mar’i ◽  
Mehdi Seraj
Keyword(s):  
Trade Balance ◽  
Real Exchange Rates ◽  
Distributed Model ◽  
Long Run ◽  
J Curve ◽  
Short Run ◽  
Using Data ◽  
Bound Test ◽  
The Relationship ◽  
Ardl Bound Test

This paper investigates the relationship between trade balance, real exchange rates, and incomes in Tunisia by adopting the autoregressive distributed model (ARDL) by using data over the period of 1980 to 2018. We also used the bound test cointegration between variables at a 10% significant level. Our findings show that the Tunisia economy does not match the Marshall-Lerner condition in the long run, that provides an accurate description of the particular situation for which a country currency devaluation or depreciation its currency under both fixed or floating regime is predicted to enhance the trade balance of a country, which means there is no j-curve phenomenon in the long run, which tries to differentiate between the change of short-run and long-run effects in the change of exchange rate on the trade balance. Our findings match the Marshall-Lerner condition in the short run and can confirm the existing j-curve in the case of Tunisia.

scholarly journals Energy Consumption and Economic Growth Nexus in Pakistan

2021 ◽  
Vol 9 (3) ◽  
Author(s):  
Muhammad Ali Sindhu ◽  
Muhammad Abdul Quddus
Keyword(s):  
Economic Growth ◽  
Energy Consumption ◽  
Unit Root ◽  
Energy Efficient ◽  
Unit Root Test ◽  
Long Run ◽  
Augmented Dickey Fuller ◽  
Bound Test ◽  
The Relationship ◽  
Ardl Bound Test

The study explored the link between energy consumption and economic growth in Pakistan covering the period from 1980 to 2018. This study used an augmented production function and combined the two neo-classical and ecological points. Most important is that this study used three different proxies of energy to check whether the relationship is proxy specific or not in Pakistan. Furthermore, there are some controls in terms of trade and foreign direct investment to check the robustness of the relationship. The time series approaches as augmented dickey fuller (ADF) unit root test and ARDL bound test approach has applied. The results indicated the long-run positive relationship between energy and growth in Pakistan and the relationship is not proxy specific. Therefore, it has suggested enhancing energy efficient policies, better resource allocation for energy supply.

Malaysia’s Healthcare Expenditure: ARDL Bound Test

2021 ◽  
Vol 7 (2) ◽  
pp. 267
Author(s):  
Noormahayu Binti Mohd Nasir ◽  
Zarul Azhar Nasir ◽  
Norasyikin Abdullah Fahami ◽  
Muhammad Adidinizar Zia Ahmad Kusairee ◽  
Khalijah Ramli
Keyword(s):  
Healthcare Expenditure ◽  
Negative Relationship ◽  
Income Level ◽  
Regression Result ◽  
Ageing Population ◽  
Education Expenditure ◽  
Independent Variables ◽  
Long Run ◽  
Bound Test ◽  
Ardl Bound Test

This study aims to analyse the relationships between income level, education expenditure, inflation, and ageing population towards health expenditure in Malaysia over the period of 1997 until 2017.  This study employs Autoregressive Distributed-Lag (ARDL) Bound test in determining the long-run empirical relationships between all independent variables and healthcare expenditures in Malaysia.  The findings show the existence of long run cointegration between healthcare expenditure inflation, income level, and the government’s education expenditure.  The results confirmed that all independent variables have positive long run relationships, except the ageing population that displays a negative relationship in influencing healthcare expenditure in Malaysia. The regression result of GDPP shows income elasticity value of 0.690, reflecting the necessity of healthcare expenditure. The outcome of the paper hopes to provide insights on the importance of healthcare expenditure for the development of this country, especially on its economic fronts.

scholarly journals An econometric analysis of the effectiveness of fiscal and monetary policies in India

2021 ◽  
Author(s):  
Anand Nadar
Keyword(s):  
Economic Growth ◽  
Monetary Policy ◽  
Fiscal Policy ◽  
Money Supply ◽  
Series Data ◽  
Monetary Policies ◽  
Indian Economy ◽  
Long Run ◽  
Short Run ◽  
Bound Test

This study investigatesthe effectiveness of fiscal policy and monetary policy in India. We collected thetime series data for India ranging from 1960 to 2019 from World Development Indicator (WDI). Weapplied the bound test co-integration approach to check the long-run relationship between fiscalpolicy, monetary policy, and economic growth in the context of Indian economy. The short-run andlong-run effects of fiscal policy and monetary policy have been estimated using ARDL models. Theresults showed that there is a long-run relationship between fiscal and monetary policies witheconomic growth. The estimated short-run coefficients indicated that a few immediate short runimpacts of fiscal and monetary policies are insignificant. However, the short-run impacts becomesignificant as time passes. The long-run results suggested that the long-run impact of both fiscal andmonetary policies on economic growth are positive and significant. More specifically, the GDP levelincreases if the money supply and government expenditure increase (Expansionary fiscal andmonetary policies). On the other hand, the GDP level decreasesif the money supply and governmentexpenditure decrease (contractionary fiscal and monetary policies). Therefore, this studyrecommends to use expansionary policies to spur the Indian economy.

scholarly journals COVID-19 Pandemic and Micro, Small and Medium Enterprises (MSMEs): Policy Response for Revival

2020 ◽  
Vol 47 (3) ◽  
pp. 213-228
Author(s):  
Minaketan Behera ◽  
Sanghamitra Mishra ◽  
Niharika Mohapatra ◽  
Alok Ranjan Behera
Keyword(s):  
Small And Medium Enterprises ◽  
Economic Activities ◽  
Fiscal Stimulus ◽  
Indian Economy ◽  
Long Run ◽  
Market Linkage ◽  
The Government ◽  
Medium Enterprises ◽  
High Degree ◽  
The Relationship

The outburst of COVID-19 has not only distressed the economic and social activities of Indian economy but also the world economy as a whole. Out of different economic activities, the micro, small and medium Enterprises (MSMEs) affected a lot. This article attempts to measure the contribution of MSMEs towards Indian economy and also attempts to find out the challenges and problems in pre- and during COVID period. We have used different descriptive statistics to measure the impacts of MSMEs and also use of correlation and co-integration to measure the relationship among the variables such as number of MSMEs, investment amount, employment and output. This pandemic is an exceptional shock for MSMEs. It is evident that there is a high degree of significant positive correlation among the variables. Johansen’s co-integration analysis resulted in the rejection of the null hypothesis signifying the existence of long-run co-integrating relationship. Given the extensive COVID-19 chaos, the government needs to establish an ongoing monitoring system and declare urgent relief steps to improve the MSMEs sector’s confidence. E-market linkage for MSMEs should be promoted, and fiscal stimulus should increase for this sector. The Government of India should take various measures to improve Indian MSMEs and achieve the vision of Self-reliant India.

scholarly journals An analysis of the impact of non-oil exports on economic growth: Evidence from Nigeria

2020 ◽  
Vol 2 (1) ◽  
pp. 15-23
Author(s):  
Lawali Bello Zoramawa ◽  
Machief Paul Ezekiel ◽  
Salisu Umar
Keyword(s):  
Economic Growth ◽  
Global Market ◽  
Agricultural Export ◽  
Long Run ◽  
Oil Exports ◽  
Oil Export ◽  
Oil Sector ◽  
The Impact ◽  
Bound Test ◽  
Ardl Bound Test

The study assessed the contribution of the non-oil sector to the economic growth in Nigeria between the periods 1981 and 2019. The study employed the ARDL bound test for cointegration to analyze the direction among the variables under review. The results of the analysis revealed that there is a negative and statistically significant relationship between non-oil exports (NOE) and economic growth (RGDP) in Nigeria during the period under investigation in the long-run for Manufacturing (MANX), solid mineral(SOLX) except for Agricultural export (AGRX). There is also a bidirectional causal relationship between non-oil exports and economic growth in Nigeria during the same period. The study, therefore recommended that the Nigerian government and other stakeholders should make a country’s non-oil export commodities more attractive and competitive in the global market which will prompt the demand for Nigeria’s non-oil goods at the international market.  Keywords: Non-Oil exports, Economic Growth,

scholarly journals Stock Market Development and Economic Growth in Malaysia: A Revisit from 1982 to 2014

2020 ◽  
Vol 2 (1) ◽  
Author(s):  
Lee Kok Fong ◽  
◽  
Mori Kogid ◽  
Jaratin Lily ◽  
◽  
...  
Keyword(s):  
Economic Growth ◽  
Stock Market ◽  
Annual Data ◽  
Stock Market Development ◽  
Long Run ◽  
Augmented Dickey Fuller ◽  
Financial Decision ◽  
Stationarity Test ◽  
Bound Test ◽  
The Relationship

The study examines the relationship between the development of the stock market and economic growth in Malaysia using annual data from 1982 to 2014. The development of the stock market represented three indicators, namely the turnover ratio, the shares value traded ratio and the market capitalization ratio. Augmented Dickey-Fuller stationarity test was carried outprior to the use of a bound test approach for co-integration and causality testing. The findings of the co-integration analysis showed that there is evidence of a long-run relationshipbetween economic growth andthe development of the stock market. Further examination of the causal relationship showed proof of the short-runinteraction between economic growth andthe development of the stock market. These findings may be of importance to policymakers in formulating growth policy and financial decision-making by investors.

scholarly journals The Relationship Between Human Development, Tourism and Economic Growth: Evidence From Malaysia

2019 ◽  
Vol 10 (5) ◽  
pp. 96
Author(s):  
Yan-Teng Tan ◽  
Pei-Tha Gan ◽  
Mohd Yahya Mohd Hussin ◽  
Norimah Ramli
Keyword(s):  
Economic Growth ◽  
Human Development ◽  
Empirical Studies ◽  
Well Being ◽  
Policy Makers ◽  
Remarkable Feature ◽  
Long Run ◽  
The Social ◽  
Social And Cultural Factors ◽  
The Relationship

A remarkable feature of empirical studies is that not many research works investigate the relation between human development and tourism. Although gross domestic product may replace human development to measure economy progress and human well-being in relation to tourism, however, this definition, is narrow, limits to economic side, and ignores the social and cultural factors. To overcome this shortcoming, this study examines the relationship between human development, tourism and economic growth in Malaysia. By using different cointegration approaches, the results indicate that tourism is positively related to human development in the long run. The finding suggests that the known relationship may serve as a guide to policy makers to achieve better development of social and cultural in order to promote the growth.

Financial Inclusion and Quality of Life: Empirical Evidences from Indian States with Special Reference to West Bengal

2021 ◽  
pp. 0258042X2110261
Author(s):  
Avisek Sen ◽  
Arindam Laha
Keyword(s):  
Quality Of Life ◽  
Human Development ◽  
Financial Literacy ◽  
Financial Services ◽  
West Bengal ◽  
Well Being ◽  
Financial Inclusion ◽  
Indian States ◽  
The Relationship

The conceptual connection between financial inclusion and quality of life (QOL) can be realized by a two-way relationships. On the one hand, financial inclusion induces QOL, while an improvement in QOL facilitates in generating demand for financial services, on the other hand. Even though several studies seek to find out the role of finance in the well-being of the population (especially human development), this article concentrates on QOL to eliminate the financial attributes of development (as captured by income dimension in Human Development Index). In this sense, this study addresses the research gap in the existing literature by establishing the relationship between financial inclusion and QOL. Specifically, the article attempts to explain the two-way tie-up between the financial inclusion and the QOL in India in the context of Indian states, in general, and West Bengal, in particular. Canonical correlation (CC; a multivariate data analysis technique) is used to estimate the relation between the financial inclusion and QOL. Empirical results suggest that western and the southern Indian states excel in the attainment of education, health and other amenities-based indicators of QOL. The conditions of the eastern part of the country in case of financial inclusion and the QOL are not at all satisfactory. In case of West Bengal, Kolkata being the state capital is performing well in both the factors. CC results suggest a significant association between the financial inclusion and QOL across Indian states. The deposit account of financial inclusion indicator and the infant survival rate of QOL indicator are playing a pivotal role in the relationship (both the Indian states and districts of West Bengal as well). This article establishes the effectiveness of the demand following approach of financial inclusion than that of supply leading approach. As the demand-side aspect of financial inclusion is becoming more important to the policymakers, the next policy priority of financial inclusion measures could be the generation of awareness on the financial services through financial literacy. JEL Codes: G2, O15, C39

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