scholarly journals The efficiency of government expenditures policies: use of dummy variables in the regression building of Armey — Rahn curve

2015 ◽  
Vol 3 (1) ◽  
pp. 35-41
Author(s):  
Нина Горидько ◽  
Nina Goridko
Keyword(s):  
Economic Growth ◽  
Time Series ◽  
Negative Impact ◽  
Economic Indicators ◽  
Government Expenditures ◽  
Gdp Growth ◽  
Adequate Model ◽  
Dummy Variables ◽  
Simulation Results ◽  
The Relationship

The paper is devoted to the capacities of using dummy variables to construct models that approximate the crisis dynamics of the economic indicators. On the example of Armey — Rahn curve describing the relationship between the GDP growth and the share of government expenditures in GDP, it is proved that the use of dummy variables to indicate the years of crisis provides a meaningful and adequate model if the crisis years have located in the middle of the time series. Functions constructed for Ukraine and Russia, clearly answer the question of what years could be considered as a crisis, and what ones determine a stagnation. Simulation results confirm the negative impact of the crisis onto economic growth.

scholarly journals What is the impact of financial depth on economic growth within middle income countries?

2021 ◽  
Vol 10 (1) ◽  
pp. 122-130
Author(s):  
Abdulaleem Isiaka ◽  
Abdulqudus Isiaka ◽  
Abdulqadir Isiaka ◽  
Omotomiwa Adenubi
Keyword(s):  
Economic Growth ◽  
Global Financial Crisis ◽  
Negative Impact ◽  
Gdp Growth ◽  
Middle Income ◽  
Average Growth ◽  
Dummy Variables ◽  
Middle Income Countries ◽  
Financial Depth ◽  
The Impact

 This paper utilizes the Least Squares Dummy Variables (LSDV) technique in investigating the effect of financial depth on economic growth within a sample of middle-income countries, over the period 2005–2017. The research finds that financial depth has a negative impact on real GDP growth within middle-income countries. This result is robust to the use of alternative measures of financial depth, the use of per capita GDP growth as a proxy for economic growth, the inclusion of dummy variables to control for the 2007–2010 global financial crisis, the exclusion of countries with high average growth as well as across income levels. Based on its findings, this study recommends the need for robust regulations to ensure that the credit facilities of domestic financial institutions are channeled towards productive investments rather than debt servicing.

scholarly journals Inflation and economic growth: the search for a compromise for the Central Bank's monetary policy

2018 ◽  
Vol 13 (2) ◽  
pp. 153-163 ◽  
Author(s):  
Volodymyr Mishchenko ◽  
Svitlana Naumenkova ◽  
Svitlana Mishchenko ◽  
Viktor Ivanov
Keyword(s):  
Economic Growth ◽  
Monetary Policy ◽  
Money Supply ◽  
Inflation Rate ◽  
Negative Impact ◽  
Gdp Growth ◽  
The Real ◽  
Real Gdp ◽  
National Bank ◽  
The Relationship

The article analyzes the influence of inflation on economic growth and substantiates the main directions of increasing the effectiveness of the central bank's anti-inflation policy. In order to determine the limit of inflation, the excess of which has a negative impact on the economic growth, the relationship is analyzed between the inflation rate and the real GDP growth rate on the basis of IMF statistics using the example of 158 countries. It was determined that in 2010–2017, in the global economy, the 6.0% inflation was the marginal value of the inflation rate, beyond which the economic growth rate declined or slowed down. Given the inverse relationship between the inflation rate and the real GDP growth rates as well as empirical calculations for the period 1996–2017, the threshold for inflation rate for Ukraine at the level of 4.51% was determined based on empirical calculations for the 1996–2017 period. The results indicate that the National Bank of Ukraine set the inflation target above the level of the calculated threshold inflation. It has also been established that the link between the rates of nominal GDP growth, as opposed to real GDP, and the inflation rate, is more direct and more tight. It is substantiated that to analyze such dependence it is better to use GDP deflator instead of CPI. The results indicate that deflation constrains economic growth much less than inflation. In order to increase the effectiveness of the central bank’s pro-cyclical monetary policy aimed at supporting economic growth, the relationship between the rates of real GDP growth and the indicator characterizing the gap between the growth rates of M3 and inflation, which actually reflects the real money supply dynamics, is determined. The results obtained allowed to conclude that in 2009 and 2014-2017, the artificial “squeezing” of the money supply took place in Ukraine, resulting in a decrease in the level of the economy monetization by 22.0% in 2017 compared to 2013.It has been proved that in order to minimize the negative impact of inflationary processes on economic growth, the policy of the National Bank of Ukraine should be aimed at eliminating the artificial squeezing of the money supply through a reasonable increase in the economy monetization and the implementation of an effective monetary policy.

scholarly journals Public Spending and Economic Growth in the Rentier State: The Case of Kuwait

2016 ◽  
Vol 12 (8) ◽  
pp. 160 ◽  
Author(s):  
Ebrahim Merza ◽  
Noorah Alhasan
Keyword(s):  
Economic Growth ◽  
Time Series ◽  
Government Spending ◽  
Public Spending ◽  
Government Expenditures ◽  
Gdp Growth ◽  
Development Projects ◽  
Rentier State ◽  
Long Run ◽  
Equilibrium Relationship

<p>This paper examines the validity of Wagner’s hypothesis in Kuwait looking specifically at government expenditures in health, education and infrastructure. Using time series analysis, the paper has found a long-run equilibrium relationship between GDP growth and the specified government expenditures. It, however, only found one causal relationship between development expenditures and GDP growth. As such, the paper proposes an expansion in government spending on development projects and reevaluates budget allocation in health and education.</p>

scholarly journals A Way towards Economic Growth in Pakistan: Role of Worker’s Remittances Revisited

2017 ◽  
Vol 5 (1) ◽  
pp. 1-14
Author(s):  
Hina Ali ◽  
Saba Tahir
Keyword(s):  
Economic Growth ◽  
Time Series ◽  
Economic Development ◽  
World Bank ◽  
Direct Investment ◽  
Least Square ◽  
Gdp Growth ◽  
Ordinary Least Square ◽  
The Relationship

This research is directed to study the role of remittances in the economic growth of Pakistan. In Pakistan workers, remittances are considered a second-largest source of finance after FDI. In this study, the relationship between worker's remittances and economic development in Pakistan is estimated by using the Ordinary Least Square (OLS) technique. Data is taken in time series for the period of 37 years from 1976 to 2013 from World Bank, economic surveys, and Stat bank of Pakistan. This research showed that worker’s remittances are positive as well as significant with GDP growth and also playing a dynamic part in the economy of Pakistan. Savings (SAV) and Foreign direct investment (FDI) have positive and significant impacts on economic development. Therefore, the study recommends that there should be a proper setup that will help to attract more workers remittances into the economy. There is a need for such an official financial sector that inspires recipients to invest their savings into a productive sector that would result in economic growth.

scholarly journals Examining GDP Growth and Its Volatility: An Episodic Approach

Entropy ◽  
2021 ◽  
Vol 23 (7) ◽  
pp. 890
Author(s):  
Jakub Bartak ◽  
Łukasz Jabłoński ◽  
Agnieszka Jastrzębska
Keyword(s):  
Economic Growth ◽  
Genetic Algorithm ◽  
Time Series ◽  
Human Capital ◽  
Growth Rates ◽  
Structural Breaks ◽  
Negative Relationship ◽  
Gdp Per Capita ◽  
Gdp Growth ◽  
Per Capita

In this paper, we study economic growth and its volatility from an episodic perspective. We first demonstrate the ability of the genetic algorithm to detect shifts in the volatility and levels of a given time series. Having shown that it works well, we then use it to detect structural breaks that segment the GDP per capita time series into episodes characterized by different means and volatility of growth rates. We further investigate whether a volatile economy is likely to grow more slowly and analyze the determinants of high/low growth with high/low volatility patterns. The main results indicate a negative relationship between volatility and growth. Moreover, the results suggest that international trade simultaneously promotes growth and increases volatility, human capital promotes growth and stability, and financial development reduces volatility and negatively correlates with growth.

scholarly journals Does the Increase in Renewable Energy Influence GDP Growth? An EU-28 Analysis

Energies ◽  
2021 ◽  
Vol 14 (16) ◽  
pp. 4762
Author(s):  
Daniela Nicoleta Sahlian ◽  
Adriana Florina Popa ◽  
Raluca Florentina Creţu
Keyword(s):  
Economic Growth ◽  
Renewable Energy ◽  
Greenhouse Gases ◽  
Negative Impact ◽  
Gdp Growth ◽  
Panel Analysis ◽  
Renewable Sources ◽  
Per Capita ◽  
Near Future ◽  
The Eu

The aim of our study was to analyze whether the increase in the use of renewable energy can help GDP growth. The research carried out shows that renewable energy has the ability to decrease or neutralize the negative impact of greenhouse gases (GHG), but also to maintain economic growth. We focused our analysis on the EU-28 as we know that the EU Commission’s aim, in the near future, is to join forces to reduce the GHG used and move to renewable sources. We used a panel analysis with data between 2000 and 2019 from all Member States, and our results showed that their economic growth is influenced positively by the production of renewable energy, the GHG per capita, and the GHG intensity per GDP.

scholarly journals A time series analysis of determinants of FDI in Afghanistan: Which one matters the most, security or economic growth?

2018 ◽  
Vol 6 (2) ◽  
pp. 19
Author(s):  
Abdul Fareed Delawari
Keyword(s):  
Economic Growth ◽  
Time Series ◽  
Foreign Direct Investment ◽  
Time Series Analysis ◽  
Direct Investment ◽  
Economic Factors ◽  
Market Economic ◽  
The Government ◽  
The Relationship

Afghanistan has been practicing market economic system since 2002. Since then, the government has been initiating different policies and announced various incentives to attract foreign direct investment (FDI) to the country. However, the outcome has not been satisfactory due to several political and economic factors. This paper explores the relationship between security, economic growth and FDI in Afghanistan, using ARDL model. The paper covers a period from 2002 to 2016. The empirical results of this study show that there is a negative long-term relationship between security and FDI. Hence,  the author concludes that, to attract FDI to the country, insuring security should be the top priority of the government of Afghanistan.

scholarly journals How do Poverty and Income Inequality affect Economic Growth in Developing Countries?

2021 ◽  
Vol 4 (2) ◽  
pp. 547-558
Author(s):  
Hamza Saleem ◽  
Fatima Farooq ◽  
Muhammad Aurmaghan
Keyword(s):  
Economic Growth ◽  
Developing Countries ◽  
Panel Data ◽  
Income Inequality ◽  
Negative Impact ◽  
Positive Impact ◽  
Development Indicators ◽  
The Relationship ◽  
Positive Effect ◽  
World Development

The major objective of this research is to examine the relationship between poverty, income inequality and economic growth from some selected developing countries. This study uses panel data for the period of 2002-2015. All the data is taken from world development indicators (WDI). To find out the results, we have used Hausman test an econometrics technique for panel data in this research. The results of the study indicate that poverty and income inequality have a negative impact on economic growth on the other hand Gross capital formation, labor force, total population and government consumption and expenditure have a positive impact on economic growth. The result tells us that changes in these variables have a significant and positive effect on the dependent variable. To achieve the goal of economic growth developing countries should reduce poverty and take meaningful steps to overcome the problem of inequality in the society which can be very helpful in achieving the goal of economic growth.

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