The impact of corruption on the economic growth in Bangladesh, India and Pakistan: An ARDL approach

Purpose of the study: Main purpose of the paper is to find out the impact of corruption on the economic growth of Bangladesh, India, and Pakistan. At the same time, our other objectives are to find the long and short-run effects of corruption on growth in these countries. Methodology: For conducting the study, we have taken the data from Bangladesh, India, and Pakistan. For this study necessary secondary data have been collected from 1990 to 2016 based on countries like Bangladesh, India, and Pakistan. Data for economic growth (dependent) and trade (independent) are collected from World Development Bank and data for corruption are taken from International Country Risk published by the PRS Group. The study has used ECM ARDL Model and the Fixed Effect Model. Findings: The result of the fixed effect model shows a 1percent increase in corruption decreases GDP by 0.07 units and shows a negative relationship with economic growth. Again if trade increases by 1 percent then growth will increase by 0.09 units on average and shows a positive relationship with economic growth. ECM ARDL Model shows the positive coefficient of corruption but not significant but trade has a long-run positive influence on economic growth. The error correction term indicating that the adjustment is corrected by 70% in these three countries. Contributions: This paper may be helpful for existing literature gap and also for further research. It will be helpful for policy makers to control corruption in three countries.

Download Full-text

Impact of Military Expenditures on the Globalization Process: A Spatial Econometric Analysis for African Region

Journal of Asian and African Studies ◽

10.1177/00219096211010324 ◽

2021 ◽

pp. 002190962110103

Author(s):

Saima Sarwar ◽

Alvina Sabah Idrees

Keyword(s):

Economic Growth ◽

Negative Relationship ◽

Fixed Effect Model ◽

Fixed Effect ◽

Spatial Econometric ◽

Effect Model ◽

The World ◽

Spatial Autoregressive ◽

Military Expenditures ◽

The Impact

With modernization, ideological shifts and economic interdependency, the concept of globalization has expanded vastly. Though the world is unipolar, still the international competition remains prevalent that poses serious threats to regional conflicts. The great powers of the world are still competing with each other for influence over other countries. Thus, the role of militarization cannot be ignored in this context. Thus, it would be interesting to examine the impact of military expenditures on the globalization process through the spill-over effects, along with their relationship with economic growth. The study employed panel data consisting of African countries, covering the time period from 2001 to 2014. The econometric estimation is done through the application of spatial econometric techniques, that is, the spatial autoregressive fixed effect model and spatial Durbin fixed effect model. The study has found a positive relationship between economic growth and globalization but a negative relationship was found between military expenditures and economic growth.

Download Full-text

The Gap in Economic Growth from Foreign Investment and Domestic Investment across Provinces in Indonesia

Electronic Journal of Education, Social Economics and Technology ◽

10.33122/ejeset.v1i1.7 ◽

2020 ◽

Vol 1 (1) ◽

pp. 34-38

Author(s):

Asnawi Asnawi ◽

Irfan Irfan ◽

M. Fathul Chairi Ramadhani

Keyword(s):

Economic Growth ◽

Foreign Investment ◽

Time Series Data ◽

Secondary Data ◽

Fixed Effect Model ◽

Positive Influence ◽

Series Data ◽

Domestic Investment ◽

Effect Model ◽

Negative Effect

The study aims to determine the effect of Foreign Investment (FDI) and Domestic Investment (PMDN) on Cross-Province Economic Growth in Indonesia in 2014-2018. This study uses secondary data with Panel and Poled data consisting of 34 provinces in Indonesia, and use the 5 years time-series data during 2014-2018. The analytical method used is the panel regression analysis method with the Fixed Effect model and poled model. The results showed that foreign investment and domestic investment had a positive and significant effect on economic growth across provinces in Indonesia. Furthermore, the results of the study show that foreign investment and domestic investment have a significant and positive effect on economic growth in 8 provinces in Indonesia, and the foreign investment has a significant and positive influence on economic growth in 9 Provinces in Indonesia. However, only North Maluku, where foreign investment has a significant and negative effect on economic growth, and domestic investment significantly and positively affects economic growth in 6 provinces in Indonesia.

Download Full-text

The Impact of the Special Autonomy Fund on the Convergence of the Human Development Index in Aceh

Jurnal Ilmiah Peuradeun ◽

10.26811/peuradeun.v8i1.367 ◽

2020 ◽

Vol 8 (1) ◽

pp. 179

Author(s):

Irwan Safwadi

Keyword(s):

Human Development ◽

Central Government ◽

Statistical Tests ◽

Secondary Data ◽

Fixed Effect Model ◽

Positive Influence ◽

Fixed Effect ◽

Analysis Model ◽

Conditional Convergence ◽

The Impact

Since 2008, district/city governments in Aceh have received special autonomy funds transfers from the central government. This study aimed to assess the absolute and conditional convergence of HDI in Aceh, and examine the effect of special autonomy funds and other socio-economic variables on HDI conditional convergence during the implementation of special autonomy in Aceh. The data used were secondary data with panel data covering 23 districts/cities in Aceh in 2008-2017. The analysis model used was the convergence model with the Fixed Effect panel regression analysis approach; testing analytical tools used the Hausman Test, Chow Test, and statistical tests. The regression results of the fixed effect model revealed that the occurrence of absolute HDI convergence in districts/cities in Aceh. The estimation of conditional convergence indicated that population density played a significant and significant role in driving the convergence of HDI districts/city. Special autonomy funds had a positive influence but were not significant to encourage the HDI convergence process. It was also followed by the number of working people who did not significantly influence the HDI. Therefore, policymakers in districts/cities in Aceh must continue to pay serious attention in an effort to accelerate human development, through human development priorities sourced from Aceh's special autonomy fund.

Download Full-text

Peran Pertumbuhan Ekonomi Dalam Menurunkan Kemiskinan di Tingkat Provinsi di Indonesia Tahun 2004-2012

MODUS ◽

10.24002/modus.v28i1.669 ◽

2016 ◽

Vol 28 (1) ◽

pp. 91

Author(s):

Denni Setiawan Jayadi ◽

Aloysius Gunadi Brata

Keyword(s):

Economic Growth ◽

Poverty Reduction ◽

Secondary Data ◽

Data Bank ◽

Fixed Effect Model ◽

Negative Influence ◽

Fixed Effect ◽

Mining Sector ◽

Effect Model ◽

Panel Data Regression

Abstrak Penelitian ini bertujuan untuk mengetahui dan menganalisis peran pertumbuhan ekonomi terhadap penurunan kemiskinan dilihat dari sektoral tahun 2004–2012. Variabel yang digunakan adalah jumlah penduduk miskin sebagai variabel dependen dan Produk Domestik Regional Bruto (PRDB) di sembilan sektor sebagai variabel independen. Data yang digunakan dalam penelitian ini merupakan data sekunder yang diperoleh dari terbitan world data bank. Metode analisis yang digunakan adalah regresi data panel dengan pendekatan model fixed effect. Dalam mengolah data, penulis menggunakan bantuan software Eviews 8.1. Berdasarkan hasil estimasi di peroleh bahwa secara keseluruhan pertumbuhan ekonomi berpengaruh negatif dan signifikan terhadap kemiskinan di tingkat Provinsi di Indonesia. Selanjutnya dilihat dari segi sektoral ditemukan bahwa variabel sektor per-tambangan memiliki pengaruh yang negatif dan signifikan terhadap penurunan kemiskinan. Hal itu disebabkan adanya commodities boom terhadap komoditi hasil tambang. Sehingga sektor pertambangan bukanlah sektor yang menjadi kunci dalam penurunan kemiskinan namun terjadinya commodities boom memiliki pengaruh terhadap penurunan kemiskinan di Provinsi di Indonesia. Kata Kunci : Fixed Effect, Kemiskinan, PDRB sektoral, pertumbuhan ekonomi, commodities boom. AbstractThis study aims to identify and analyze the role of economic growth on poverty reduction seen from sectors in 2004-2012. The variables used were the number of poverty as the dependent variable and the Gross Regional Domestic Product (GRDP) in nine sectors as independent variables. The data used in this research is secondary data obtained from the data published by the World Bank. The analytical method used is the panel data regression with fixed effect model approach. In processing the data, the authors using statistical software Eviews 8.1.Based on estimates obtained that overall economic growth is negative and have significant effect on poverty at the provincial level in Indonesia. Furthermore, in terms of sectoral found that variable per-mining sector has a negative influence and significant impact on poverty reduction. It was caused by the commodities boom of the commodity mined. So that the mining sector is not a sector that is key in reducing poverty, but the commodities boom have an impact on poverty reduction in the province in Indonesia. Keywords: Fixed Effect, poverty, the GDP sectoral, economic growth, commodities boom.

Download Full-text

IMPACT OF INVESTMENT, LABOR, AND INFRASTRUCTURE ON JAVA ISLAND ECONOMIC GROWTH 2011-2017

EFFICIENT Indonesian Journal of Development Economics ◽

10.15294/efficient.v1i3.35151 ◽

2018 ◽

Vol 1 (3) ◽

pp. 230-241

Author(s):

Maya Aprilia Sari

Keyword(s):

Economic Growth ◽

Local Governments ◽

Secondary Data ◽

Fixed Effect Model ◽

Fixed Effect ◽

Least Square ◽

Clean Water ◽

Domestic Investment ◽

Central Java ◽

Effect Model

The study aims to determine and analyze the effect of investment, labor, and infrastructure on economic growth in Java in 2011-2017. This research is a quantitative study using secondary data from six provinces in Java (DKI Jakarta, West Java, Central Java, Special Region of Yogyakarta, East Java and Banten) obtained from the Central Statistics Agency. Analysis of the data used in this study is panel regression of fixed effect model data using the General Least Square (GLS) method. The results showed that individually the domestic investment variable, labor, clean water infrastructure had a significant influence on economic growth while foreign investment had no significant effect on economic growth. Suggestions: 1) local governments are expected to increase the potential of each region to attract investors; 2) local governments are expected to create a conducive investment climate and facilitate investment licensing; 3) local governments are expected to increase the allocation of education funds and provide training in foreign languages and skills to the workforce; 4) local governments should make better plans for the distribution of clean water and improve the efficiency of the use of clean water.© 2019, Universitas Negeri Semarang Penelitian bertujuan untuk mengetahui dan menganalisis pengaruh investasi,tenaga kerja, dan infrastruktur terhadap pertumbuhan ekonomi di Pulau Jawa tahun 2011-2017. Penelitian ini merupakan penelitian kuantitatif menggunakan data sekunder enam provinsi di Pulau Jawa (DKI Jakarta, Jawa Barat, Jawa Tengah, Daerah Istimewa Yogyakarta, Jawa Timur, dan Banten) yang diperoleh dari Badan Pusat Statistik.Analisis data yang digunakan pada penelitian ini adalah regresi data panel model fixed effect menggunakan metode General Least Square (GLS). Hasil penelitian menunjukkan bahwa secara individu variabel penanaman modal dalam negeri, tenaga kerja, infrastruktur air bersih memiliki pengaruh signifikanterhadap pertumbuhan ekonomi sedangkanpenanaman modal luar negeri tidak berpengaruh signifikan terhadap pertumbuhan ekonomi. Saran: 1) pemerintah daerah diharapkan meningkatkan potensi setiap daerah agar menarik para investor; 2) pemerintah daerah diharapkan menciptakan iklim investasi yang kondusif dan mempermudah perizinan investasi; 3) pemerintah daerah diharapkan meningkatkan alokasi dana pendidikan dan memberikan pelatihan bahasa asing dan ketrampilan kepada tenaga kerja; 4) pemerintah daerah hendaknya membuat perencanaan distribusi air bersih yang lebih baik lagi dan meningkatkan efisiensi penggunaan air bersih.

Download Full-text

The Impact of Economic Growth and Unemployment Rate on Poverty in Sulawesi

Jambura Equilibrium Journal ◽

10.37479/jej.v2i1.4497 ◽

2020 ◽

Vol 2 (1) ◽

Author(s):

Roflan R Badu ◽

Syarwani Canon ◽

Fitri Hadi Yulia Akib

Keyword(s):

Economic Growth ◽

Data Analysis ◽

Unemployment Rate ◽

Positive Impact ◽

Panel Data Analysis ◽

Secondary Data ◽

Fixed Effect Model ◽

Poverty Rate ◽

Effect Model ◽

The Impact

This research aims to analyze several fators that may impact the provincial poverty rate in Sulawesi. Several factors considered in this research is the economic growth (growth of Gross Regional Domestic Product) and Unemployment Rate. This research uses secondary data from Central Statistics Bureau (Badan Pusat Statistik, BPS). This research uses panel data analysis on six provinces in Sulawesi during 2010-2017. This research uses Fixed Effect Model (FEM). Based on the results, it is found that economic growth and unemployment rate has significant and positive impact on poverty rate in Sulawesi. Keywords: Economic Growth; Unemployment Rate; Poverty.

Download Full-text

The impact of institutions on economic growth in selected developing countries: An analysis based on Bayesian panel estimation

Journal of Applied Economics and Business Studies ◽

10.34260/jaebs.4412 ◽

2020 ◽

Vol 4 (4) ◽

pp. 251-272

Author(s):

Qasim Shah ◽

Seema Zubair ◽

Sundus Hussain

Keyword(s):

Economic Growth ◽

Developing Countries ◽

Panel Data ◽

Fixed Effect Model ◽

Data Models ◽

Fixed Effect ◽

Estimation Methods ◽

Panel Data Models ◽

Effect Model ◽

The Impact

This paper presents an empirical analysis of the impact of institutions on the economic growth of 27 developing countries during the period 1990-2014. Many creative models of panel data allow variations in slope coefficients both across time and cross-sectional units. All models were established in a Bayesian structure and their performance was tested by using an interesting application of the effect of institution on GDP. Technical details of all these models are given and tools are presented to compare their performance in the Bayesian system. Besides, panel data models and posterior model pools are provided for an insight into the institution's relationship with economic development. The derivation of Bayesian panel data models is included. The previous data has been used in this study and normal gamma prior is used for the models of panel data. 2SLS estimation technique has been used to analyze the classical estimation of panel data models. In the paper, developing countries were viewed as a whole. The study's evaluated results have shown that panel data models are valid Bayesian methodology models. In the Bayesian approach, the results of all independent variables affect the dependent variable significantly and positively. Based on all model standard defects, it is necessary to say that the Fixed Effect Model is the best in Bayesian panel data estimation methods. It was also shown that in comparison to other models, the fixed-effect model has the lowest standard error value.

Download Full-text

The Impact of Economic Growth and Unemployment Rate on Poverty in Sulawesi

Jambura Equilibrium Journal ◽

10.37479/jej.v2i1.4499 ◽

2020 ◽

Vol 2 (1) ◽

Author(s):

Roflan R Badu ◽

Syarwani Canon ◽

Fitri Hadi Yulia Akib

Keyword(s):

Economic Growth ◽

Data Analysis ◽

Unemployment Rate ◽

Positive Impact ◽

Panel Data Analysis ◽

Secondary Data ◽

Fixed Effect Model ◽

Poverty Rate ◽

Effect Model ◽

The Impact

Download Full-text

THE EFFECT OF POPULATION GROWTH AND TRADE OPENNESS ON ECONOMIC GROWTH OF THE OIC COUNTRIES

Jurnal Ekonomi Syariah Teori dan Terapan ◽

10.20473/vol8iss20215pp537-547 ◽

2021 ◽

Vol 8 (5) ◽

pp. 537

Author(s):

Noor Syahro El Muharromy ◽

Ilmiawan Auwalin

Keyword(s):

Economic Growth ◽

Population Growth ◽

Exchange Rates ◽

Trade Openness ◽

Negative Relationship ◽

Fixed Effect Model ◽

Fixed Effect ◽

Effect Model ◽

Analysis Technique ◽

The Government

ABSTRAKPertumbuhan ekonomi memegang peranan penting dalam menentukan keberhasilan pembangunan sebuah negara, oleh karena itu setiap negara selalu menetapkan target pertumbuhan ekonomi yang stabil dalam tujuan pembangunan. Dalam prosesnya pertumbuhan ekonomi dipengaruhi oleh berbagai factor yang dapat mendorong atau bahkan menghambat laju pertumbuhan. Penelitian ini bertujuan untuk menganalisis pertumbuhan penduduk, keterbukaan perdagangan, inflasi, nilai tukar dan investasi terhadap pertumbuhan ekonomi 40 negara anggota Organisasi Kerjasama Islam (OKI) pada tahun 2005-2019 menggunakan pendekatan kuantitatif dengan teknik analisis regresi data panel fixed effect model dan menggunakan aplikasi Eviews 11dalam mengelola data penelitian. Hasil penelitian ini menunjukkan bahwa variabel pertumbuhan penduduk dan nilai tukar memiliki hubungan signifikan dan negatif terhadap pertumbuhan ekonomi, sedangkan keterbukaan perdagangan dan investasi berpengaruh signifikan dan positif. Sedangkan investasi tidak berpengaruh signifikan pada pertumbuhan ekonomi di Negara OKI. Berdasarkan hasil penelitian ini pemerintah dan pihak terkait diharapkan dapat mengendalikan tingkat pertumbuhan penduduknya serta mendorong sektor perdagangan internasional untuk meningkatkan pertumbuhan ekonomi mengingat tingkat keterbukaan perdagangan di Negara OKI masih dibawah potensinya.Kata Kunci: Pertumbuhan Ekonomi, Pertumbuhan Penduduk, Keterbukaan Perdagangan, Organisasi Kerjasama Islam. ABSTRACTEconomic growth plays an important role in determining the success of a country's development; therefore, each country always sets a target for stable economic growth in its development goals. In the process, economic growth is influenced by various factors that can encourage or even hinder the growth rate. The purpose of this study is to analyze the effect of population growth, trade openness, inflation, exchange rates and investment on the economic growth of 40 member countries of the Organization of Islamic Cooperation (OIC) in 2005-2019 using a quantitative approach with a fixed effect model panel data regression analysis technique and using the Eviews application. 11 in managing research data. The results of this study indicate that the variables of population growth and exchange rates have a significant and negative relationship to economic growth, while trade openness and investment have a significant and positive effect. Meanwhile, investment has no significant effect on economic growth in the OIC Country. Based on the results of this study, the government and related parties are expected to control the rate of population growth and encourage the international trade sector to increase economic growth considering that the level of trade openness in the OIC is still below its potential.Keywords: Economic Growth, Population Growth, Trade Openness, Organization of Islamic Cooperation

Download Full-text

The Impact of Government Debt on the Economic Growth of Ghana: A Time Series Analysis from 1990-2015

International Journal of Innovation and Economic Development ◽

10.18775/ijied.1849-7551-7020.2015.25.2004 ◽

2015 ◽

Vol 2 (5) ◽

pp. 31-39 ◽

Cited By ~ 3

Author(s):

Lucy Anning ◽

Collins Frimpong Ofori ◽

Ernest Kwame Affum

Keyword(s):

Economic Growth ◽

World Bank ◽

Negative Relationship ◽

Secondary Data ◽

Government Debt ◽

Ordinary Least Squares ◽

Poor Countries ◽

High Dependency ◽

Heavily Indebted Poor Countries ◽

The Impact

In this study we investigate the impact of government debt on the economic growth of Ghana adopting the methodology of the simple Ordinary Least Squares with data spanning from 1990 to 2015. Ghana has unfortunately found itself in the tragic situation of high external government debt which has led to high dependency on aid and other loans to support its development. These aids and loans have seen the debt of Ghana rise steadily over the years. As a result of the Heavily-Indebted Poor Countries (HIPC) which was presented by the IMF and World Bank in 1999, Ghana was judged to be a HIPC with unsustainable debt enabling the country to benefit from debt relief. We investigate the impact of government debt (both external and domestic) by testing three related models at the domestic and external levels including the general growth of the Ghanaian economy. In constructing our dataset, we build on the study of many scholars including a substantial amount of new materials from both primary and secondary data sources being Ministry of Finance (MOF) or Treasury Latest actual data: Government Finance Statistics Manual (GFSM), Ghana and World Bank. The research findings revealed that there is a negative relationship between debt (domestic and external) and growth in the economy of Ghana and recommend among others that government debt borrowing should be discouraged while increasing the revenue base through tax reform programs is encouraged.

Download Full-text