The impact of foreign aid on national income in Ghana: a test for long-run equilibrium

2014 ◽  
Vol 3 (3) ◽  
pp. 215 ◽  
Author(s):  
Edmund Kwablah ◽  
Anthony Amoah ◽  
Anthony Panin
Keyword(s):  
Foreign Aid ◽  
National Income ◽  
Long Run ◽  
The Impact ◽  
Long Run Equilibrium

Human capital accumulation, income distribution, and economic growth: a demand-led analytical framework

2021 ◽  
Vol 9 (3) ◽  
pp. 319-336
Author(s):  
Gilberto Tadeu Lima ◽  
Laura Carvalho ◽  
Gustavo Pereira Serra
Keyword(s):  
Human Capital ◽  
Capital Accumulation ◽  
Analytical Framework ◽  
Output Growth ◽  
Human Capital Accumulation ◽  
Capital Utilization ◽  
Tax Rate ◽  
Long Run ◽  
The Impact ◽  
Long Run Equilibrium

This paper incorporates human capital accumulation through provision of universal public education by a balanced-budget government to a demand-driven analytical framework of functional distribution and growth of income. Human capital accumulation positively impacts on workers’ productivity in production and their bargaining power in wage negotiations. In the long-run equilibrium, a rise in the tax rate (which also denotes the share of output spent in human capital formation) lowers the pre- and after-tax wage share and physical capital utilization, and thus raises (lowers) the output growth rate when the latter is profit-led (wage-led). The impact of a higher tax rate on the employment rate (which also measures human capital utilization) in the long-run equilibrium is negative (ambiguous) when output growth is wage-led (profit-led). In any case, the supply of higher-skilled workers does not automatically create its own demand.

scholarly journals Evolutionary prisoner's dilemma games with one-dimensional local interaction and imitation

2009 ◽  
Vol 41 (1) ◽  
pp. 154-176 ◽  
Author(s):  
Hsiao-Chi Chen ◽  
Yunshyong Chow
Keyword(s):  
Convergence Rate ◽  
Prisoner's Dilemma ◽  
Prisoner’S Dilemma ◽  
Local Interaction ◽  
One Dimensional ◽  
Long Run ◽  
Action Dynamics ◽  
The Impact ◽  
Full Cooperation ◽  
Long Run Equilibrium

In this paper we explore the impact of imitation rules on players' long-run behaviors in evolutionary prisoner's dilemma games. All players sit sequentially and equally spaced around a circle. Players are assumed to interact only with their neighbors, and to imitate either their successful neighbors and/or themselves or the successful actions taken by their neighbors and/or themselves. In the imitating-successful-player dynamics, full defection is the unique long-run equilibrium as the probability of players' experimentations (or mutations) tend to 0. By contrast, full cooperation could emerge in the long run under the imitating-successful-action dynamics. Moreover, it is discovered that the convergence rate to equilibrium under local interaction could be slower than that under global interaction.

Understanding Economic and Social Developments in the Periphery: Bulgarian National Income 1892–1924

2008 ◽  
Vol 34-35 (1-2) ◽  
pp. 219-244
Author(s):  
Martin Ivanov
Keyword(s):  
World War I ◽  
Population Change ◽  
National Income ◽  
Population Increase ◽  
World War ◽  
Balkan Wars ◽  
Negative Growth Rate ◽  
Long Run ◽  
The Impact ◽  
Negative Growth

This article aims at a reconstruction of reliable estimates of Bulgarian GNP growth. The main methodological point of reference is a work published in the 1940s by a contemporary Bulgarian economist, Asen Chakalov. Given the sophistication of Chakalov’s estimates and the desirability of chaining new data onto his estimate for 1924, the article’s methodology consists in the first instance in replicating his figure for 1924 on the basis of original sources and then using these same sources to create a series of properly documented estimates for the years between 1892 and 1924. To provide a meaningful comparison over the long run between 1892 and 1945, we must allow for price changes, population change, and the impact of territorial redistribution in the course of the Balkan Wars and World War I. The results are striking. For 1924 a reassuring match with Chakalov’s estimate is achieved. The new GNP series indicates that the Bulgarian economy did not achieve staggering results during the period in review—an average of 0.93% on a yearly basis. True, there were sub-periods in which the GNP was growing a bit faster (2.76% between 1899 and 1905, and 2.16% during 1905-1911); however, this is both a misleading (due to the low base of the crisis of 1899) and an unsustainable conclusion. Inserting the population factor into the picture makes the situation even more dismal. In per capita terms Bulgaria achieved a negative growth rate of –0.32% annually. The economy fell behind the population increase, which turned out to be a serious obstacle for switching over to a higher gear.

Reconsidering the role of Tobin’s Q

2015 ◽  
Vol 32 (2) ◽  
pp. 222-234 ◽  
Author(s):  
Mark J. Holmes ◽  
Nabil Maghrebi
Keyword(s):  
Error Correction ◽  
Tobin’S Q ◽  
Tobin's Q ◽  
Content Type ◽  
Investment Expenditure ◽  
Long Run ◽  
The Impact ◽  
The Relationship ◽  
Long Run Equilibrium ◽  
Real Investment

Purpose – The purpose of this study is to investigate nonlinearities in the behavior of investment expenditure. Conventional wisdom suggests that Tobin’s Q criterion is an important explanation of investment behaviour that bridges the financial and real sides of the economy. However, the empirical evidence in support of Q as a means of explaining aggregate business investment is rather weak. We answer a number of questions about the relationship between investment expenditure and Q. In particular, is the relationship governed by non-linearities? If so, what is the nature of the non-linearities present? Design/methodology/approach – The rationale for paying closer attention to non-linearities is based on the presence of information asymmetries and possible dependence of adjustments on non-linearities with respect to factors such as fixed costs, threshold effects and irreversibility, which are entertained in the investment literature. Using the non-linear vector error-correction model procedure advocated by Hansen and Seo, we show that in the context of the US economy, investment has a long-run relationship with Q that is based on threshold error correction. Findings – There are asymmetries present with respect to error correction or the speed of adjustment towards long-run equilibrium. We find that investment expenditure only responds significantly to long-run disequilibrium from Q during a particular regime. Such a regime is characterised by long-run disequilibrium based on high or rising investment expenditure compared with a relatively weak stock market. Originality/value – The authors provide new insights into the relationship between Tobin’s Q and real investment. In contrast to previous work, they find that error correction based on the adjustment of real investment is regime-specific and function of the size of departures from long-run equilibrium. The tests also allow for the identification of periods when error correction has occurred. Not only are these insights significant for future research on financial crises, market volatility and the impact of debt, but for policymaking purposes as well.

scholarly journals The Impact of Tourism Development on Economic Development: The Case of Zanzibar

2021 ◽  
pp. 41-50
Author(s):  
Hafidh Ali Hafidh ◽  
Zulekha Ayoub Rashid
Keyword(s):  
Economic Development ◽  
Government Expenditure ◽  
National Income ◽  
Tourism Development ◽  
Small Island ◽  
Stable Relationship ◽  
Long Run ◽  
Study Results ◽  
The Government ◽  
The Impact

Tourism is perceived as one of the world’s fastest growing service sectors and a major source of economic development for many, if not all, developing countries. Zanzibar as a developing country and also is a small island which have small economy, its national income depend much on tourism contribution, Therefore this paper aim to examine the impact of tourisms development to the economic development of Zanzibar, using the data based on annual time series from the period 1989–2019 and also employing Vector Error Correlation Model (VECM) to arrive at conclusions from the data in the study area. The study results found a long-run stable relationship among tourism development and economic development of Zanzibar, there is a positive and significant impact that exists between GDP and international tourism arrivals, inflation and government expenditure respectively while only inflation results show positive but insignificant impact. In order to increase the economic development in Zanzibar through the tourism sector, there is a need for the government and other stakeholders of tourism to put much consideration on this sector so as to improve overall development of Zanzibar economy.

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.  

scholarly journals Monetary Policy and Financial Stability in the Nigerian Banking Industry

2019 ◽  
Vol 11 (1) ◽  
pp. 82
Author(s):  
Oparah Felix Chukwudi ◽  
James Tumba Henry
Keyword(s):  
Monetary Policy ◽  
Financial Stability ◽  
Banking Industry ◽  
Stability Index ◽  
Open Market ◽  
Long Run ◽  
Market Operation ◽  
The Impact ◽  
Nigerian Banking ◽  
Long Run Equilibrium

This study examined the impact of monetary policy on financial stability in the Nigerian banking industry for the period 2008Q1 to 2016Q2, using an error correction model. Banking industry financial stability index (BIFSI) was computed within the study and was used as a measure of financial stability in the Nigerian banking industry. The study discovered that the impact of monetary policy on financial stability in the Nigerian banking industry was weak. It also revealed a significant long run equilibrium relationship between monetary policy and financial stability in the Nigerian banking industry with a speed of adjustment to long run equilibrium of 66.54%. It was concluded that open market operation and exchange rate channels are more effective channels of transmitting monetary policy to financial stability in the banking industry, than interest rate channel.

The Politics of Foreign Aid: Impact of Superpowers’ Economic Assistance on India and Pakistan during the Cold War

2020 ◽  
Vol 7 (1) ◽  
pp. 52-79
Author(s):  
Surinder Mohan ◽  
J. Susanna Lobo
Keyword(s):  
Cold War ◽  
Soviet Union ◽  
Foreign Aid ◽  
Economic Assistance ◽  
Industrial Base ◽  
The Soviet Union ◽  
Long Run ◽  
Self Sufficiency ◽  
The Cold War ◽  
The Impact

This article traces the impact of superpowers’ foreign aid on India and Pakistan during the early decades of the Cold War. It shows how the American policy-makers have drawn their initial strategies to bring India under the Western fold and later, when the Indian leadership resisted by adopting the foreign policy non-alignment, charted a new approach to keep it at an adequate distance from the Soviet influence—particularly by exploiting its food insecurity and inability to complete the five-year plans. In contrast, the Soviet Union extended project-aid to India which assisted it to build much required large industrial base and attain self-sufficiency in the long run. By adhering to the non-aligned doctrine, India not only managed a negotiable balance with the superpower politics but also extracted considerable benefits for its overall development. On the other hand, aligned Pakistan had shown least enthusiasm with regard to self-sufficiency and pursued policies imbued with militarism which ended up it as a rent-seeking dependent state.

scholarly journals The Impact of Foreign Direct Investment on Economic Growth in Nigeria

2015 ◽  
Vol 7 (4) ◽  
pp. 90-97
Author(s):  
Sani Ali Ibrahim
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
Time Series Data ◽  
Empirical Studies ◽  
Trade Openness ◽  
National Income ◽  
Series Data ◽  
Long Run ◽  
The Impact

The economic development performance can be used to measure the economic growth of a given country. In economic analysis, a country can attain economic growth through the growth in national income measurement. However, there were rigorous discussions on the role of foreign direct investment (FDI) on economic growth and continued to be a topic of discussion on the contemporary economy. This paper serves as an extension to the previous empirical studies on the issue by providing some evidence from time series data for the period 1971 to 2013 of Nigeria. The primary aim of this study is to analyze the impact of FDI on economic growth of Nigeria taking trade openness, Gross Fixed Capital Formation and human capital as control variables. To investigate the long run equilibrium relationship, Johansen and Juselius co-integration approach is analyzed, while the speed of adjustment in the short run is analyzed through the use of VECM method. In Nigeria, FDI, GFCF and HK have long run relationship with economic growth. However, the coefficient of ECM in Nigeria is statistically significant at 1% level of significance. Thus, 10.8% of the adjustment is achieved due to the correction of the adjustment speed in a year.

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