scholarly journals Financial Depth and Efficiency, and Economic Growth Nexus in Saudi Arabia and Oman

2018 ◽  
Vol 11 (2) ◽  
pp. 105-112
Author(s):  
Abdullah Saeed ◽  
Shayem Saleh
Keyword(s):  
Economic Growth ◽  
Saudi Arabia ◽  
Panel Data ◽  
Causal Relation ◽  
Policy Implications ◽  
Financial Deepening ◽  
Empirical Results ◽  
Financial Depth ◽  
Detrimental Impact

AbstractThis paper aims to examine the financial depth and efficiency and economic growth nexus in the context of Saudi Arabia and Oman. In particular, this paper addresses on how financial depth and efficiency relate to economic growth and the causal relation between financial depth and efficiency and the economic growth in Saudi Arabia and Oman. Methodological wise, this study employs a panel data of Saudi Arabia and Oman over the period of 1990 - 2015 and uses the determination of line of best to analyze the causal relations. The empirical results show that financial deepening have desirable effects on the economic growth in Oman, while increasing financial depth and efficiency has detrimental impact to economic growth of Saudi Arabia. Based on these empirical facts, we conclude that the financial deepening in Saudi Arabia is not an economic prioritized strategy, but financial deepening is an economic prioritized strategy in Oman. Two main policy implications are reached.

scholarly journals Revisit coal consumption, CO2 emissions and economic growth nexus in China and India using a newly developed bootstrap ARDL bound test

2017 ◽  
Vol 36 (3) ◽  
pp. 450-463 ◽  
Author(s):  
Feng-Li Lin ◽  
Roula Inglesi-Lotz ◽  
Tsangyao Chang
Keyword(s):  
Economic Growth ◽  
Granger Causality ◽  
Policy Implications ◽  
Coal Consumption ◽  
Causality Test ◽  
Ardl Model ◽  
Empirical Results ◽  
China And India ◽  
The Government ◽  
Bound Test

This study revisits coal consumption, CO2 emissions and economic growth nexus for both China and India using a newly developed Bootstrap ARDL model over the period of 1969–2015. Empirical results indicate no long-run relationship among these three variables for both China and India, and Granger causality test based on Bootstrap ARDL model indicates a feedback between coal consumption and economic growth, between economic growth and CO2 emissions and between coal consumption and CO2 emissions in China. However, we find a one-way Granger causality running from coal consumption to economic growth and the feedback hypothesis is confirmed between economic growth and CO2 emissions and between coal consumption and CO2 emissions in India. The coefficients signal that coal consumption is an important factor towards the promotion economic growth in both China and India. For China, higher economic growth reduces CO2 emissions, while for India, it further increases CO2 emissions. Our empirical results have important policy implications for the government conducting effective energy polices to promote economic growth in both China and India.

Rural Tourism Demand in Galicia, Spain

2006 ◽  
Vol 12 (1) ◽  
pp. 21-31 ◽  
Author(s):  
Fidel Martínez Roget ◽  
Xosé A. Rodríguez González
Keyword(s):  
Panel Data ◽  
Policy Implications ◽  
Rural Tourism ◽  
Tourism Demand ◽  
Economic Cycle ◽  
Economic Determinants ◽  
Travel Costs ◽  
Empirical Results ◽  
Overnight Stays

This paper is a study of rural tourism demand in Galicia by means of panel data. The dependent variable used is the number of overnight stays. Empirical results suggest that the number of overnight stays in rural tourism establishments depends basically on economic determinants, such as the price of services in rural tourism establishments, the extent of transport (travel) costs and the economic cycle (tourists' income). The income variable exhibits the highest elasticity. Besides the influence of economic determinants, rural tourism demand depends mainly on the reputation (prestige) and peculiarities of each establishment. In light of these results, conclusions are drawn and policy implications are discussed.

scholarly journals Causal Nexus between Government Debt, Exports and Economic Growth for Three Eurozone Countries: A Panel Data Analysis

2016 ◽  
Vol 3 (1) ◽  
pp. 47
Author(s):  
Nikolaos Dritsakis ◽  
Pavlos Stamatiou
Keyword(s):  
Economic Growth ◽  
Panel Data ◽  
Government Debt ◽  
The United States ◽  
Mortgage Market ◽  
Least Square ◽  
Policy Implications ◽  
Ordinary Least Square ◽  
Long Run ◽  
The Relationship

<em>The relationship between government debt, exports and economic growth has been the focus of a considerable number of academic studies in recent years. The economic crisis, which started in the United States mortgage market, quickly went global when mortgage-backed securities traded by financial institutions. Europe’s response was immediate regarding the measures to tackle the crisis. The establishment of common strategies was the long term goal of the European Union (EU). This paper examines the relationship between government debt, exports and economic growth in the EU countries with the highest level of government debt, using panel data over the period 1990-2014. The Fully Modified Ordinary Least Square (FMOLS) and Dynamic Ordinary Least Square (DOLS) methods are used to estimate the long run relationship between the variables. In addition, the Vector Error Correction Model (VECM) is used in order to investigate the causal relationship between the examined variables. The empirical results of the study revealed that there are both short and long run relationships. Findings suggest that that there is a unidirectional causality running from exports to economic growth as well as from exports and economic growth to government debt. The results provide evidence to support the export led-growth hypothesis. Exports are an important factor for economic development. Moreover, the results reveal that government debt is affected by exports both directly and indirectly through economic growth. Policy implications are then explored in the conclusions.</em>

scholarly journals Determinants of credit constraints for agricultural wholesalers in China

2020 ◽  
Vol 23 (4) ◽  
pp. 563-577
Author(s):  
Lifang Hu ◽  
Rigoberto A. Lopez ◽  
Yinchu Zeng
Keyword(s):  
Economic Growth ◽  
Credit Constraints ◽  
Sample Selection ◽  
Probit Model ◽  
Nationwide Survey ◽  
Food Distribution ◽  
Policy Implications ◽  
Empirical Results ◽  
Capital Assets ◽  
Using Data

Following market reforms and economic growth since the late 1970s, agricultural wholesale markets in China have developed substantially and become increasingly important in food distribution. This paper investigates the determinants of credit constraints on agricultural wholesalers. A probit model with sample selection is estimated for credit constraints and demand using data collected via a nationwide survey of 1,422 agricultural wholesalers, of whom approximately 39% were designated as credit-constrained. Empirical results confirm that an absence of relatives in the business supports the notion of further discouraging potential borrowers from applying for credit in the first place. Moreover, the probability of being credit-constrained is significantly lower for legal corporations, wholesalers who have higher-value capital assets, larger-sized wholesalers, and those in a better micro-finance environment. Some policy implications are outlined.

scholarly journals Financial depth in the context of the relationship with economic growth

2021 ◽  
Vol 2021 (6) ◽  
pp. 72-88
Author(s):  
Yuliia SHAPOVAL ◽  
Keyword(s):  
Economic Growth ◽  
Economic Development ◽  
Financial Resources ◽  
Financial Deepening ◽  
Credit Expansion ◽  
Financial Depth ◽  
Domestic Credit ◽  
Account Due ◽  
Investment Growth ◽  
The Relationship

The generalization of quantitative and qualitative scientific approaches to the essence of financial depth enables to define it as a resulting characteristic that demonstrates the saturation of the economy with financial resources, that allows assessing the ability of the financial system to effectively mobilize and redistribute financial resources to achieve sustainable economic development. The retrospective analysis of empirical hypotheses linking the financial depth of the economy and economic growth suggests that while some scholars focus on the importance of financial depth in economic development, others emphasize the effects of financial crises caused by rapid financial deepening, in particular credit expansion. The focus of contemporary research is on the nonlinearity of the relationship between financial depth and long-term economic growth and on defining the limit of financial development, exceeding which inhibits economic growth or negatively impacts it. Among the positives of financial deepening is the expansion of access to financial resources (increase in the volume and diversification of financial instruments), reduction of income inequality and smoothing of consumption, diversification of production risks. Among the risks of financial deepening is the deterioration of the current account due to excessive lending, unproductive investment, growth in employment in non-productive sectors, limitation of the use of fiscal policy as an instrument of countercyclical policy. It is noted that formation of the financial depth of the economy depends on the characteristics of financial resources and as well in structural, macroeconomic, political and institutional factors of economic development. While the world tends to increase the ratio of financial assets, broad money, domestic credit provided by financial institutions, the capitalization of listed companies to GDP, in Ukraine since 2014 there has been a significant decrease in these indicators, which is not typical in comparison with countries with the same level of income and demonstrates the low level of financial depth of the domestic economy.

Globalization and Economic Growth Revisited: A Bootstrap Panel Causality Test

2016 ◽  
Vol 1 (2) ◽  
Author(s):  
 Hsiao-Ping Chu ◽  
Tsangyao Chang ◽  
Tagi Sagafi-nejad
Keyword(s):  
Economic Growth ◽  
Oecd Countries ◽  
Policy Implications ◽  
Causality Test ◽  
Panel Causality ◽  
Empirical Results ◽  
Panel Granger Causality ◽  
The Us ◽  
Direction Of Causation ◽  
The Uk

This paper revisits the nature and direction of causation between globalization and economic growth in nine OECD countries and China by applying the bootstrap panel Granger causality test to the data over the period of 1981-2008. Empirical results support evidence on causality from globalization to economic growth for Netherlands and the UK; causality from economic growth to globalization in the US, neutrality for Australia, Belgium, Canada, France, Italy, and Japan. Based on the empirical results from this paper, we provide important policy implications for the OECD countries and China.

Financial Deepening and Economic Growth Linkages: A Panel Data Analysis

2007 ◽  
Vol 143 (1) ◽  
pp. 179-198 ◽  
Author(s):  
Nicholas Apergis ◽  
Ioannis Filippidis ◽  
Claire Economidou
Keyword(s):  
Economic Growth ◽  
Data Analysis ◽  
Panel Data ◽  
Panel Data Analysis ◽  
Financial Deepening

scholarly journals Primary commodity export and economic growth in sub sahara africa: evidence from panel data analysis

2011 ◽  
Vol 11 (4) ◽  
pp. 465-474 ◽  
Author(s):  
Matthew Ocran ◽  
Nicholas Biekpe
Keyword(s):  
Economic Growth ◽  
Panel Data ◽  
Fixed Effects ◽  
Panel Data Analysis ◽  
Negative Relationship ◽  
Policy Implications ◽  
Sub Saharan Africa ◽  
Primary Commodity ◽  
Commodity Export ◽  
The Impact

The paper sought to examine the impact of instability in primary commodity export earnings and the level of commodity dependence on economic growth in Sub Saharan Africa (SSA).  Fixed effects panel data estimator was used in the empirical estimation. The findings of the study suggest that there is a negative relationship between instability in export earnings and economic growth. The results also indicate that the level of commodity dependence matter in determining economic growth in the region. The results of the paper have economic development policy implications for SSA economies and these are not farfetched. First, it appears the difficult growth experience of SSA is not solely due to instability in export receipts. The question of continued dependence on a narrow range of primary commodities is also matter of great importance.

The link between tourism activities and economic growth: Evidence from China’s provinces

2016 ◽  
Vol 19 (1) ◽  
pp. 3-14 ◽  
Author(s):  
Tsung-Pao Wu ◽  
Hung-Che Wu
Keyword(s):  
Economic Growth ◽  
Causal Relationship ◽  
Policy Implications ◽  
Hunan Province ◽  
International Tourism ◽  
Empirical Results ◽  
Study Support ◽  
Reverse Relationship ◽  
Growth Hypothesis ◽  
Support Evidence

This study explores the causal relationship between international tourism receipts and economic growth in China’s eight central provinces (Shanxi, Jilin, Heilongjiang, Anhui, Jiangxi, Henan, Hubei and Hunan) by analyzing these provinces for the period from 1995 to 2014, accounting for both dependency and heterogeneity across provinces. The empirical results of this study support evidence for the growth hypothesis in Hunan Province. A reverse relationship supports evidence on the conservation hypothesis for the provinces, such as Shanxi, Jiangxi, and Henan. A reciprocal causal relationship was found for Jilin, Anhui, and Hubei, while the result of a neutrality hypothesis supported only one of the provinces in Heilongjiang. The empirical findings of this study provide important policy implications for China’s eight central provinces.

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