scholarly journals Foreign Aid and Economics Development Nexus: The Case of Sierra Leone

2021 ◽  
Vol 9 (6) ◽  
pp. 219-233
Author(s):  
Ezekiel Kalvin Duramany-Lakkoh
Keyword(s):  
Economic Growth ◽  
Foreign Aid ◽  
Sierra Leone ◽  
Growth And Development ◽  
Secondary Data ◽  
Empirical Estimation ◽  
Economic Growth And Development ◽  
Long Run ◽  
Short Run ◽  
The Impact

This study investigates the impact of foreign aid on economic growth in Sierra Leone using cointegration and error correction methodology by Johansen and Juselius (1990). Utilizing secondary data for the period 1970 to 2018, the empirical estimation revealed that foreign aid in Sierra Lone is positively and significantly related to economic growth both in the short run and long run, confirming the importance of the study. The policy implication of the study is that the Sierra Leone government should seek more foreign aid to accelerate economic growth and development.  

Globalisation, Economic Growth and Income Inequality in Nigeria

2020 ◽  
Vol 14 (2) ◽  
pp. 202-212
Author(s):  
NWOSA Philip Ifeakachukwu
Keyword(s):  
Economic Growth ◽  
Income Inequality ◽  
Secondary Data ◽  
Vector Error Correction ◽  
Distributed Lag ◽  
Long Run ◽  
Short Run ◽  
Auto Regressive ◽  
The Impact ◽  
Financial Globalisation

This article examines the link between globalisation, economic growth and income inequality in Nigeria using annual secondary data over the period 1981–2018. Specifically, it attempts to examine the following questions: (a) What is the direction of causation among globalisation, economic growth and inequality? (b) What is the impact of globalisation and economic growth on inequality? (iii) Do trade globalisation and financial globalisation have differential impacts on inequality in Nigeria? The article used both vector error correction modelling (VECM) and auto-regressive distributed lag (ARDL) techniques. The VECM results show a unidirectional causality from inequality and globalisation to economic growth in the long run, whereas a unidirectional causation was observed from inequality to economic growth in the short run. The ARDL estimate shows that globalisation and economic growth are significant determinants of inequality in Nigeria. Furthermore, it is observed that trade and financial globalisation influenced income inequality differently. In the light of these findings, the article recommends that the foreign direct investment should be channelled towards empowering the poor, and the dividends of economic growth should be evenly distributed to reduce the income inequality gap.

scholarly journals Role of Tax Revenue, Non-tax Revenue, and Foreign Aid to Increase the Size of Budget in Nepal

2020 ◽  
pp. 31-48
Author(s):  
Arjun Kumar Dahal ◽  
Ghanshyam Dhakal ◽  
Khagendra Kumar Thapa
Keyword(s):  
Foreign Aid ◽  
Secondary Data ◽  
Fiscal Year ◽  
Tax Revenue ◽  
Exploratory Research ◽  
Causality Test ◽  
Long Run ◽  
Integration Test ◽  
Short Run ◽  
The Impact

Purpose: The purpose of the present study is to find the impact of tax revenue, non-tax revenue, and foreign aid to increase the size of the budget in Nepal. Methods: This study is based on descriptive, analytical, and exploratory research designs. The Johnsen Co-integration Test, VECM, Wald Test, and Granger Causality Test are used to find long-run relation, impact, short-run causality, and granger cause between the pairs of variables. Results: The tax revenue, non-tax revenue, foreign aid, and budget are co-integrated, or they have a long-run association ship. The result of VECM shows that tax revenue, non-tax revenue, foreign aid is nicely fitted, and they are jointly significant to explain the size of the budget in Nepal. Short-run causality was found between the size of budget and tax revenue and size of budget and foreign aid, but there was an absence of short-run causality between budget and non-tax revenue in Nepal. The granger cause was not found between the pair of variables. Implications: It seems to increase the tax revenue and decrease the dependency on foreign aid. Limitations: This study was based on the secondary data of 40 years from the fiscal year 1979/80 to 2018/19.  Only three variables, tax revenue, non-tax revenue, and foreign aid, are considered the effecting factor of the budget size. Hence, further study is necessary by employing other tools and variables. Originality: The author was not affected by the study and findings of others.

scholarly journals Financing Human Development for Sectorial Growth: A Time Series Analysis

2017 ◽  
Vol 10 (1) ◽  
pp. 51-67 ◽  
Author(s):  
Abdul Olatunji Shobande ◽  
Charles Etukomeni
Keyword(s):  
Economic Growth ◽  
Human Capital ◽  
Human Development ◽  
Growth And Development ◽  
Human Capital Development ◽  
Economic Growth And Development ◽  
Long Run ◽  
Depth Relationship ◽  
Capital Development ◽  
The Impact

Abstract The role which financing human development plays in fostering the sectorial growth of an economy cannot be undermined. It is a key instrument which can be utilized to alleviate poverty, create employment and ensure the sustenance of economic growth and development. Thus financing human development for sectorial growth has taken the center stage of economic growth and development strategies in most countries. In a constructive effort to examine the in-depth relationship between the variables in the Nigerian space, this paper provides evidence on the impact of financing human development and sectorial growth in Nigeria between 1982 and 2016, using the Johansen co-integration techniques to test for co-integration among the variables and the Vector Error Correction Model (VECM) to ascertain the speed of adjustment of the variables to their long run equilibrium position. The analysis shows that a long and short run relationship exists between financing human capital development and sectorial growth during the period reviewed. Therefore, the paper argues that for an active foundation for sustainable sectorial growth and development, financing human capital development across each unit is urgently required through increased budgetary allocation for both health and educational sectors since they are key components of human capital development in a nation.

scholarly journals Empirical Analysis of the Macroeconomic impact of Foreign Aid on Pakistan Economy (1972-2014)

2021 ◽  
Vol 7 (3) ◽  
pp. 587-596
Author(s):  
Hifsa Bibi ◽  
Amjad Amin ◽  
Danish Alam
Keyword(s):  
Economic Growth ◽  
Foreign Aid ◽  
Empirical Analysis ◽  
Research Work ◽  
Secondary Data ◽  
Foreign Assistance ◽  
Long Run ◽  
Depth Analysis ◽  
Macroeconomic Impact ◽  
Short Run

Purpose: Although Pakistan receives large quantity of foreign aid, like other developing countries, but it remains more dependent on foreign assistance for economic development since independence.  This situation has commenced a vigorous discussion on aid-growth effectiveness. Methodology: This research work evaluates the macroeconomic impact of foreign aid on Pakistan economy by using secondary data. The empirical analysis is based on ARDL cointegration approach after testing for unit root, using the data for the period 1972-2014. Findings: The findings suggest there is no long run relationship between Foreign aid and Economic Growth. However, there exists negative short run relation between Foreign aid and Economic Growth of Pakistan. Implications: Based on the study findings, the study recommends that government of Pakistan should find alternate sources of financing as the relation between foreign aid and economic growth is found negative and insignificant. The in depth analysis of the study made it evident that allocation of aid to those sectors of the economy which really needs development, is more productive, provided that the country should use aid funds in the right direction, as corruption less economy prosper more rapidly.

Foreign aid and economic growth in sub-Saharan Africa

2019 ◽  
Vol 11 (1) ◽  
pp. 147-168 ◽  
Author(s):  
Nihar Ranjan Jena ◽  
Narayan Sethi
Keyword(s):  
Economic Growth ◽  
Foreign Aid ◽  
Sub Saharan Africa ◽  
Cointegration Test ◽  
Modeling Framework ◽  
Content Type ◽  
Long Run ◽  
Short Run ◽  
Sub Saharan ◽  
The Impact

Purpose The purpose of this paper is to empirically examine the effectiveness of foreign aid in improving economic growth prospects in the sub-Saharan Africa (SSA) region from 1993 to 2017. Design/methodology/approach A sample of 45 SSA countries for the period 1993–2017 is considered for this study. The study uses various econometrics tools such as Pedroni and Kao’s cointegration test, Johansen-Fisher Panel cointegration test, FMOLS and PDOLS in order to ascertain the long-run and short-run dynamics among the variables under consideration. Findings The empirical results find that long-run and short-run relationships exist among foreign aid, economic growth, investment, financial deepening, price stability and trade openness of the SSA economies. The authors also find unidirectional causality running from foreign aid to economic growth. The policymakers in these countries are well-advised to implement suitable policy measures to build on the growth momentum created by foreign aid inflows. Originality/value The study uses a dynamic macroeconomic modeling framework to assess the impact of aid flows on economic growth in the SSA region. Taking into account the diversity of level of growth experienced by the 45 countries in the region, the study uses an appropriate regression technique, i.e., panel dynamic OLS whose results are robust. The finding is also supported by the Granger-causality test and robust cointegration techniques.

scholarly journals Impact of Trade Openness on Economic Growth among ECOWAS Countries: 1975-2017

2019 ◽  
pp. 75-96 ◽  
Author(s):  
Victor U. Ijirshar
Keyword(s):  
Economic Growth ◽  
Cross Sections ◽  
Trade Openness ◽  
Secondary Data ◽  
International Markets ◽  
Time Dimension ◽  
Positive Effects ◽  
Long Run ◽  
Short Run ◽  
The Impact

This study assesses the impact of trade openness on economic growth among ECOWAS countries uses secondary data from 1975 to 2017. The study uses non-stationary heterogeneous dynamic panel models through the application of Pooled Mean Group (PMG) and Mean Group (MG) estimators since time dimension was more than cross-sections. Using the Hausman test, PMG estimator was preferred. Results show that trade openness has positive effects on growth in ECOWAS countries in the long-run but mixed effects in the short-run. The study therefore recommends that ECOWAS member countries improve cooperation among economic actors by using export consortia so as to help SMEs in the region access international markets and to pursue a twin strategy of trade and competitiveness.

The Greek economy in a Kaldorian developmental framework

2013 ◽  
Vol 63 (1) ◽  
pp. 61-75 ◽  
Author(s):  
Konstantinos Katrakilidis ◽  
Persefoni Tsaliki ◽  
Theodosios Tsiakis
Keyword(s):  
Economic Growth ◽  
Growth And Development ◽  
Economic Policies ◽  
Demand Side ◽  
Economic Growth And Development ◽  
Empirical Ground ◽  
Long Run ◽  
Short Run ◽  
Greek Economy ◽  
Difficult Times

This paper empirically explores the validity of the Kaldorian insights into economic growth and development. In doing so, we examine the three laws outlined in Kaldor’s analysis and test their relevance to the Greek economy for the period 1970–2006. We employ the ARDL method to analyse the long-run and short-run relationships among the variables. The empirical results confirm Kaldor’s proposition about the importance of the demand side of the economy and thus provide the necessary theoretical and empirical ground for innovative economic policies in these difficult times for Greece.

scholarly journals An Empirical Analysis of Impact of Foreign Aid on Economic Growth: The Case of Pakistan

2011 ◽  
Vol 3 (5) ◽  
pp. 235-241
Author(s):  
Muhammad Akram ◽  
Mahpara .
Keyword(s):  
Economic Growth ◽  
Foreign Aid ◽  
Time Series Data ◽  
Negative Relationship ◽  
Diagnostic Methods ◽  
Series Data ◽  
Government Organizations ◽  
Long Run ◽  
Short Run ◽  
The Impact

The objective of this study is to analyze the effects of foreign aid on economic growth of Pakistan. The time series data for the period 1980-2008 is used by applying OLS regression model and two diagnostic methods namely Breusch-Pagon and Durbin-Watson tests. Results depict that foreign aid is insignificantly related to the economic growth to Pakistan for short-run and long-run. By excluding the foreign direct investment, results are significant but still a negative relationship exists. This study will help to government organizations by recognizing about the impact of foreign aid on economic growth.

scholarly journals Estimating the Impact of Crop Diversification on Economic Growth in India: A Quantitative Assessment

2019 ◽  
Vol 8 (4) ◽  
pp. 5771-5776
Keyword(s):  
Economic Growth ◽  
Secondary Data ◽  
Crop Diversification ◽  
Income Generation ◽  
Causality Test ◽  
Long Run ◽  
Short Run ◽  
Generation Capacity ◽  
Diversification Mechanism ◽  
The Impact

Though agriculture is the mainstay in India, it accounts only 14 percent sectoral share in GDP. This is mainly because of low productivity and income generation capacity of agriculture. In this regard, crop diversification can act as a mechanism to eliminate this dilemma. It not only will increase the agricultural productivity but also will accelerate the income generation capacity. In this study we have investigated the impact of crop diversification on economic growth in India since 1988. The study is completely based on secondary data. In order to investigate the impact of crop diversification on economic growth, we have estimated Granger causality test based on vector error correction model setting. The results reveal that in India, there is no causality running from crop diversification to economic growth in the short-run. However, in the long-run crop diversification causes economic growth in India and the nature of cause is positive. Finally, the study concludes that suitable policies should be adopted to encourage the farmer to adopt the crop diversification mechanism. This will ultimately accelerate economic growth of the nation through increased income and employment in agriculture and reduction in poverty of the nation.

scholarly journals The Impact of Foreign Aid on Economic Growth in Morocco: Econometric Analysis Using VECM

2017 ◽  
Vol 9 (5) ◽  
pp. 87 ◽  
Author(s):  
Kawthar Aghoutane ◽  
Mohamed Karim
Keyword(s):  
Economic Growth ◽  
Foreign Aid ◽  
Empirical Literature ◽  
Government Consumption ◽  
Vector Error Correction ◽  
Vector Error ◽  
Long Run ◽  
Short Run ◽  
The Impact

The present work aims to contribute to the empirical literature on the effectiveness of Foreign aid in Morocco. We use the Vector Error Correction Model (VECM) to jointly capture the long-run relationship and short-run dynamics between Official Development Assistance and economic growth. Other variables such as investment, exports, and government consumption are also included in the model. The results indicate that the foreign aid promotes growth through government consumption in the short term. However, the impact of aid on economic growth becomes negative in the long term.

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