scholarly journals A Panel Data Study of the Effects of Economic Freedom, Regulatory Quality, and Taxation on the Growth Rate of Per Capita Real GDP

2012 ◽  
Vol 30 (1) ◽  
pp. 103-122
Author(s):  
Richard J. Cebula ◽  
Maggie Foley
Keyword(s):  
Growth Rate ◽  
Fixed Effects ◽  
Economic Freedom ◽  
Government Regulation ◽  
The Third ◽  
Real Gdp ◽  
Regulatory Quality ◽  
Gdp Growth Rate ◽  
Per Capita ◽  
The Cost

Abstract This study empirically investigates three hypotheses. The first is that higher levels of economic freedom in an economy promote a higher growth rate of economic activity and hence yield a higher growth rate of per capita real GDP in that economy. The second hypothesis is that higher quality government regulation leads to a more efficient economic system, in large part by interfering less with market functioning and in part by not adding unnecessarily to the cost of conducting business in the marketplace, and thereby leads to a higher per capita real GDP growth rate. The third hypothesis is that the higher the taxation level/burden relative to GDP in an economy, the lower the growth rate of private sector spending and hence the lower the growth rate of per capita real GDP in that economy. Using a panel dataset for OECD nations over the 2003 through 2006 period, fixed effects PLS estimations find compelling evidence in support of all three of these hypotheses.

scholarly journals Government Spending and Inclusive-Growth Relationship in Nigeria: An Empirical Investigation

2016 ◽  
Vol 19 (2) ◽  
pp. 33-56 ◽  
Author(s):  
Bashir Olayinka Kolawole
Keyword(s):  
Health Economic ◽  
Growth Rate ◽  
Resource Use ◽  
Government Spending ◽  
Economic Freedom ◽  
Gdp Growth ◽  
Inclusive Growth ◽  
Real Gdp ◽  
Public Resource ◽  
Gdp Growth Rate

Abstract This study has investigated the relationship between government spending and inclusive growth in Nigeria over the period 1995 to 2014. Specifically, it examined how, and to what extent, government spending on education, government spending on health, economic freedom, public resource use, and real GDP growth rate have impacted on inclusive growth in the country. It used the Dickey-Fuller GLS unit root test to ascertain the order of integration of the series. Consequently, through the Auto-Regressive Distributed Lag (ARDL) bound testing technique, the study found that in the long-run government spending on health, economic freedom, public resource use and real GDP growth rate had significantly positive influence on inclusive growth. In the short-run, however, only real GDP impacted significantly on inclusive growth while other variables were not significant in causing inclusive growth. Thus, in conclusion, government spending in the form of redistributive spending on health propelled inclusive growth in Nigeria.

scholarly journals Do Military Expenditure and Conflict Affect Economic Growth in Sri Lanka? Evidence from the ARDL Bounds Test Approach

2016 ◽  
Vol 8 (3) ◽  
pp. 1
Author(s):  
Abdul Rasheed Sithy Jesmy ◽  
Mohd Zaini Abd Karim ◽  
Shri Dewi Applanaidu
Keyword(s):  
Growth Rate ◽  
Civil War ◽  
Sri Lanka ◽  
Military Expenditure ◽  
Gdp Growth ◽  
Per Capita Gdp ◽  
Long Run ◽  
Gdp Growth Rate ◽  
Per Capita ◽  
Bounds Test

Conflicts in the form of civil war, ethnic tensions and political discord are of enduring concern and a major bottleneck to economic development in Sri Lanka. Three decades of civil war and unethical political culture have caused severe economic problems for the country, including slower rate of growth and a huge defence expenditure. The aim of this study is to examine the effect of military expenditure and conflict on per capita GDP growth rate in Sri Lanka from 1973 to 2014 using the Solow growth model and ARDL bounds test approach. The results of the bounds test are highly significant and lead to cointegration. The negative and significant coefficients of the error correction term illustrate the expected convergence process in the long-run dynamic of per capita GDP. The estimated empirical results show that, the coefficients of military expenditure and conflict are negative and statistically significant in the short-run as well as in the long-run in determining per capita GDP growth rate in Sri Lanka. Hence, it is critically important to take necessary action to decrease military expenditure and provide an efficient political solution to the problem of minorities, specifically in the post-war period.

scholarly journals INNOVATION EFFECT THROUGH RESEARCH AND DEVELOPMENT ON ECONOMIC GROWTH IN 35 OECD COUNTRIES

2021 ◽  
Vol 11 (4) ◽  
pp. 159-166
Author(s):  
Maman Ali M. Moustapha ◽  
Qian Yu
Keyword(s):  
Economic Growth ◽  
Growth Rate ◽  
Research And Development ◽  
Regression Model ◽  
Oecd Countries ◽  
Multiple Regression Model ◽  
Gdp Growth ◽  
Real Gdp ◽  
Gdp Growth Rate ◽  
Development Expenditure

This paper analyzes the effect of research and development (R&D) expenditures on economic growth in the Organization of Economic Cooperation and Development (OECD) countries over the period 2000-2016. This study conducts an empirical analysis using a multiple regression model. The main findings confirm that an increase in research and development expenditure by 1% would generate an increase of real GDP growth rate to 2.83 %. The implication emerging from this study is that government and institutions need to increase investment in R&D expenditures to fulfill inclusive economic growth perspective.

scholarly journals International Trade and Economic Misery in African Countries with Low Human Development

2021 ◽  
Vol 2 (4) ◽  
pp. 212-243
Author(s):  
Uchechukwu C. Nwogwugwu ◽  
Collins C. Umeghalu
Keyword(s):  
Growth Rate ◽  
International Trade ◽  
Exchange Rate ◽  
Trade Agreements ◽  
Balance Of Payments ◽  
Total Export ◽  
Manufacture Export ◽  
African Countries ◽  
Gdp Growth Rate ◽  
Per Capita

Puzzled by the demeaning level of poverty most African countries continue to grapple with despite their extensive participation in international trade, the study attempts to examine the encumbrances that tend to impede African countries from optimally reaping the developmental gains inherent in partaking in international trade, which seems to also worsen the economic misery the inhabitants endlessly contend with. The System Generalized Method of Moments (System-GMM) estimation technique was used in the study which involves 17 African countries and spans from 1995 - 2018. While misery index is used to measure economic misery, the impact of international trade on economic misery is captured by means of its effect via economic misery, economic growth rate, balance of payment, total export, manufacture export and exchange rate. The results of the study reveal that balance of payments, total export, manufacture export, per capita GDP growth rate, exchange rate and lagged form of economic misery all have positive effect on economic misery. While the effects of total export, manufacture export, per capita GDP growth rate, and exchange rate on economic misery are significant, those of balance of payments and lagged form of economic misery are insignificant. While the study recommends that international trade be engaged strategically such that it results in favourable balance of payments, it also encourages the discarding of obsolete trade policies such as outright bans on importation of certain commodities. Bilateral trade agreements are recommended over multilateral trade agreements, since they are more mutually beneficial and binding on the parties involved

Efficiency of Thai Commercial Banks: Pre- vs. Post-1997 Financial Crisis

2010 ◽  
Vol 13 (03) ◽  
pp. 417-447 ◽  
Author(s):  
Pornchai Chunhachinda ◽  
Li Li
Keyword(s):  
Growth Rate ◽  
Financial Crisis ◽  
Cost Efficiency ◽  
Commercial Banks ◽  
Gdp Growth ◽  
Crisis Period ◽  
Real Gdp ◽  
Gdp Growth Rate ◽  
Cost Efficiencies ◽  
Financial Characteristics

This study measures and compares the profit and cost efficiencies of Thai commercial banks between 1990 and 2008 which has been subdivided into the pre-crisis, the financial crisis, and the post-crisis periods. The efficiency scores are measured using a combination of parametric and non-parametric frontier approach. Both average profit and cost efficiency levels of the post-crisis period are found to be significantly lower than those of the pre-crisis period. The evidence also indicates that the real GDP growth rate and some general and financial characteristics are correlated with the efficiency level of Thai commercial banks.

The Finnish Economy Through the Prism of the Theory of Long Waves

2016 ◽  
Vol 4 (4) ◽  
pp. 16-22
Author(s):  
Аверина ◽  
Tatyana Averina ◽  
Иванова ◽  
O. Ivanova
Keyword(s):  
Mathematical Modeling ◽  
Business Cycles ◽  
Long Waves ◽  
Gdp Per Capita ◽  
The Third ◽  
Real Gdp ◽  
Long Duration ◽  
Real Gdp Per Capita ◽  
Kondratieff Cycles ◽  
Per Capita

The article presents the research results of Kondratieff cycles in the economy of Finland on the basis of real GDP per capita over the period of 1860–2008 years. The using of economic and mathematical modeling has allowed estimating the power of long duration business cycles, revealing the chronological framework of long waves: the third, fourth and fifth. Kondratieff’s theory has served as a methodological basis for the study of processes: the emergence, the domination and the withering away of technological structures. Regression analysis has allowed establishing the productivity of different technological structures in the Finnish economy.

Economic Concentration and Monopoly in Japan—A Second View

1976 ◽  
Vol 36 (1) ◽  
pp. 57-77 ◽  
Author(s):  
Eugene Rotwein
Keyword(s):  
Growth Rate ◽  
World War Ii ◽  
Total Output ◽  
World War ◽  
The Third ◽  
Economic Achievement ◽  
The World ◽  
Per Capita ◽  
Economic Concentration ◽  
The Impact

In the period since the end of World War II, the Japanese economic achievement has been of prodigious proportions. During this period, its growth rate—an average of almost 10% in GNP per year—has been the highest in the world. Japan has become the third-ranking industrial nation and its world standing, in terms of per capita GNP, has risen from fortieth in the early 1950s to twelfth at the present time. Growth so sweeping and rapid inevitably has brought a multitude of changes, not least in the composition of total output. At a highly accelerated rate, industries have declined, others have blossomed, new industries have appeared, and the importance of various sectors of the economy has changed. Amidst the continuing adjustments and readjustments, it is of interest to consider the nature of the impact on Japanese industrial organization. More specifically, what has been the effect on economic concentration and monopoly in Japan?

scholarly journals Taxation, government spending and economic growth: The case of Bulgaria

2021 ◽  
Vol 7 (3) ◽  
pp. 255-266
Author(s):  
G. Ganchev ◽  
◽  
I. Todorov ◽  
Keyword(s):  
Economic Growth ◽  
Growth Rate ◽  
Tax Revenue ◽  
Gdp Growth ◽  
Real Gdp ◽  
Long Run ◽  
Gdp Growth Rate ◽  
Short Run ◽  
The Impact

The objective of this article is to estimate the impact of three fiscal instruments (direct taxes, indirect taxes, and government expenditure) on Bulgaria’s economic growth. The study employs an autoregressive distributed lag model (ARDL) and Eurostat quarterly seasonally adjusted data for the period 1999–2020. Four control variables (the shares of gross capital formation, household consumption, and exports in GDP as well as the economic growth in the euro area) are included in the model to account for the influence of non-fiscal factors on Bulgaria’s real GDP growth rate. The empirical results indicate a long-run equilibrium relationship between Bulgaria’s economic growth and the independent variables in the ARDL. In the short term, Bulgaria’s real GDP growth rate is affected by its own past values and the previous values of the shares of direct tax revenue, exports, government consumption, and indirect tax revenue in GDP. In the long term, Bulgaria’s economic growth is influenced by its own previous values and the past values of the share of household consumption in GDP and the euro area’s real GDP growth rate. Fiscal instruments can be used to stabilize Bulgaria’s growth in the short run but they are neutral in the long run. The direct tax revenue, government consumption, and indirect tax revenue are highly effective and can be used as tools for invigorating and stabilizing Bulgaria’s economic growth in the short run. However, in the long term, the real GDP growth rate can be hastened only by encouraging domestic demand (final consumption expenditure of households) and promoting exports. This research cannot answer the question of whether flat income taxation stabilizes the economy or not, since it does not separate the impact of tax rate changes from the influence of tax base modifications.

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