أثر تحرير التجارة و التطور المالي على النمو الاقتصادي : دارسة حالة الأردن = The Impact of Trade Liberalization and Financial Development on Economic Growth : Jordan Case Study

2015 ◽  
Vol 2 (1) ◽  
pp. 18-32
Author(s):  
خالد محمد السواعي
Keyword(s):  
Economic Growth ◽  
Trade Liberalization ◽  
Financial Development ◽  
The Impact

scholarly journals The Relationship between Financial Development and Economic Growth: The Case of Turkey

2016 ◽  
Author(s):  
Müge Manga ◽  
Mehmet Akif Destek ◽  
Muammer Tekeoğlu ◽  
Erkut Düzakın
Keyword(s):  
Economic Growth ◽  
Private Sector ◽  
Trade Liberalization ◽  
Money Supply ◽  
Financial Development ◽  
Integration Test ◽  
Domestic Credit ◽  
The Impact ◽  
Bound Test ◽  
The Relationship

The relationship between financial development and economic growth and the direction of causality between them have been received a lot of attention recently by many scholars. It is also important to analyze this relationship and the direction of causality due to implications of policies. In this study the relationship between financial development, trade liberalization and economic growth for Turkey are examined using three different models. Model 1, 2 and 3 investigate the effect of domestic loans to the private sector and trade liberalization on GDP, the impact of the domestic credit provided by banks to the private sector and trade liberalization on GDP and the effect of M2 money supply and M2 trade liberalization on GDP, respectively. Data extracted from World Development Indicators. Autoregressive-Distributed Lag Bound Test (ARDL) is used as a co-integration test to determine the long run relationship between variables. In addition, Toda and Yamamoto (1995) is utilized to test the direction of causality between financial development and economic growth according to the three financial indicators such as domestic loans to the private sector, the domestic credit provided by banks to the private sector and M2 money supply. According to the results there is a unidirectional relationship from economic growth to domestic loans to the private sector and the domestic credit provided by banks to the private sector. Additionally, the results indicate that a bidirectional relationship exist between M2 money supply and economic growth.

Remittances, Economic Growth and Poverty: A Case of African OIC Member Countries

2018 ◽  
Vol 57 (2) ◽  
pp. 121-143
Author(s):  
Nasim Shah Shirazi ◽  
Sajid Amin Javed ◽  
Dawood Ashraf
Keyword(s):  
Economic Growth ◽  
Financial Development ◽  
Poverty Reduction ◽  
Simultaneous Equation ◽  
Equation Model ◽  
Annual Data ◽  
Simultaneous Equation Model ◽  
African Countries ◽  
Alternative Source ◽  
The Impact

This paper investigates the impact of remittance inflows on economic growth and poverty reduction for seven African countries using annual data from 1992-2010. By using the depth of hunger as a proxy for poverty in a Simultaneous Equation Model (SEM), we find that remittances have statistically significant growth enhancing and poverty reducing impact. Drawing on our estimates, we conclude that financial development level significantly increases the remittances inflows and strengthens poverty alleviating impact of remittances. Results of our study further show a signficant interactive imapct of remittances and finacial develpment on economic growth, suggesting the substitutability between remittance inflows and financial development. We further find that 3 percentage point increase in credit provision to the private sector (financial development) can help eliminate the severe depth of hunger in the region. Remittances, serving an alternative source of private credit, can be effective in this regard. Keywords: Remittance Inflow, Poverty Alleviation, Financial Development, Simultaneous Equation Model

The Nexus between Financial Development, Economic Growth and Energy Consumption in India: A VECM Technique

2020 ◽  
pp. 602-612
Keyword(s):  
Economic Growth ◽  
Energy Consumption ◽  
Financial Development ◽  
Consumer Price Index ◽  
Development Economic ◽  
Energy Prices ◽  
Vector Error Correction ◽  
Percent Increase ◽  
Growth Energy ◽  
The Impact

The demand for energy consumption requires efficient financial development in terms of bank credit. Therefore, this study examines the nexus between Financial Development, Economic Growth, Energy Prices and Energy Consumption in India, utilizing Vector Error Correction Model (VECM) technique to determine the nature of short and long term relationships from 2010 to 2019. The estimation of results indicates that a one percent increase in bank credits to private sector results in 0.10 percent increase in energy consumption and 0.28 percent increase in energy consumption responses to 1 percent increase in economic growth. It is also observed that the impact of energy price proxied by consumer price index is statistically significant with a negative sign indicating the consistency with the theory.

scholarly journals The drivers of economic growth in China and India: globalization or financial development?

2017 ◽  
Vol 16 (1) ◽  
pp. 54-84 ◽  
Author(s):  
Magda Kandil ◽  
Muhammad Shahbaz ◽  
Mantu Kumar Mahalik ◽  
Duc Khuong Nguyen
Keyword(s):  
Economic Growth ◽  
Financial Development ◽  
Emerging Market ◽  
Annual Data ◽  
Test Results ◽  
Causality Test ◽  
Content Type ◽  
China And India ◽  
Integration Test ◽  
The Impact

Purpose Using annual data from 1970 to 2013 for China and India, this paper aims to examine the impact of globalization and financial development on economic growth by endogenizing capital and inflation and drawing comparisons between the two fastest growing emerging market economies. Design/methodology/approach In the long run, co-integration test results indicate that financial development increases economic growth in China and India. Findings The results also reveal that globalization accelerates economic growth in India but, surprisingly, impairs economic growth in China, as it increases competition for exports. The results furthermore disclose that acceleration in capitalization and inflation, as a proxy for aggregate demand, are positively linked to economic growth in China and India. Originality/value Causality test results indicate that both financial development and economic growth are interdependent. In contrast, causality runs from higher economic growth to increased globalization in India, while the results do not support long-term causality between globalization and economic growth in China.

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.

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.

scholarly journals Analysis of The Impact of The Region Expansion on Economic Growth (Case Study: Expansion of North Toraja Regency from Tana Toraja)

Jurnal Office ◽  
2019 ◽  
Vol 5 (1) ◽  
pp. 1
Author(s):  
Samuel Randy Tapparan ◽  
Abdul Wahab
Keyword(s):  
Economic Growth ◽  
Economic Development ◽  
Data Collection ◽  
T Test ◽  
Regional Government ◽  
The People ◽  
Analysis Technique ◽  
Autonomous Regions ◽  
The Impact

The increasing number of regions proposing themselves to form new autonomous regions since the enactment of Law Number 32 of 2004 concerning "Regional Government", aims to improve economic development and the welfare of the people in each region. The purpose of this study was to analyze the impact of regional expansion on the economic growth of North Toraja Regency. The Technik of data collection in this study uses the documentary Technik, which is in the form of reports from relevant agencies. The analysis technique used is by using the independent sample T-test. The results of the study show that regional expansion has an impact on the economic growth of North Toraja Regency.

scholarly journals The Revival of Protectionism in the Modern World: Case Study of Uzbekistan

2020 ◽  
pp. 17-23
Author(s):  
Regina Gaynulina
Keyword(s):  
Economic Growth ◽  
Trade Liberalization ◽  
Adam Smith ◽  
Research Work ◽  
Developed Countries ◽  
Geographic Region ◽  
Modern World ◽  
Government Interventions ◽  
Wealth Of Nations

Since the publication of The Wealth of Nations by Adam Smith, in which market-based economy free from government interventions was systematically defended, economics and philosophy have mostly parted ways, culminating in a clear distinction between how most economists and philosophers view the global economic order. Although it is now clear that trade liberalization, unlike protectionism, paves the way for economic development, many still argue that the countries are better off implementing protectionist measures. Even the developed countries today seem to slowly return protectionist policies, while the developing ones commonly employ them fully. In this research work, the author will analyze the recent trends in trade policymaking as well as conduct a case study of Uzbekistan to see what impact the decades of protectionism and recent trade-liberalization reforms made on the country’s economic growth. The aim of the work is to identify and reveal the features of new protectionism in the context of globalization of the world economy and the related contradictions and to provide recommendations for Uzbek authorities based on the empirical findings. There is a very limited number of researches made in the field of trade policy in Uzbekistan, therefore this work will contribute to both Uzbekistan and global scientific societies, as the case study can be used to improve the current situation in the country, as well as it can be applied to the countries of a similar economic background (precisely present at the same geographic region) for the same purposes. The hypothesis proposed for this research is: When the country implements high protectionist measures it faces lack of money inflow, which consequently leads to a slow-down in economic growth.

scholarly journals Financial development and growth in Hungary

2015 ◽  
Vol 5 (3) ◽  
pp. 205-213
Author(s):  
Kunofiwa Tsaurai
Keyword(s):  
Economic Growth ◽  
Data Analysis ◽  
Trend Analysis ◽  
Financial Development ◽  
Case Study Approach ◽  
Study Approach ◽  
Clear Cut ◽  
Single Study ◽  
The Relationship

This study investigated the relationship between financial development and economic growth in Hungary using a case study approach. Majority of previous studies on the same or similar topic have so far used regression and or econometric methodologies to examine the nature of the relationship between financial development and economic growth. Not a single study the author is aware of used a case study approach to discuss the relationship between the two variables. It is against this background that the author decided to use the case study approach that allows the author to really deepen an understanding of the relationship between the two variables in Hungary. Apart from being narrowly focused on regression or econometric approaches, previous studies on the same or similar topic in Hungary excluded a broad range of financial development variables. The current study departs from these previous studies as it used a case study approach and taken into account a broad range of financial development variables. From the trend analysis done in section 3, it appears that the relationship between financial development and growth in Hungary during the period under study is not clear. A definite and clear cut conclusion could not be reached about the relationship between the two variables in Hungary hence the use of econometric data analysis approaches in conjuction with the case study approach is recommended.

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