scholarly journals The Differential Impact of Financial Intermediation on Economic Growth in Oil-Dependent Economies

2018 ◽  
Vol 10 (3) ◽  
pp. 267-284
Author(s):  
Anthony Anyanwu ◽  
Christopher Gan ◽  
Baiding Hu
Keyword(s):  
Economic Growth ◽  
Panel Cointegration ◽  
Bank Credit ◽  
Gdp Per Capita ◽  
Differential Impact ◽  
Pooled Mean Group ◽  
Long Run ◽  
Panel Cointegration Test ◽  
Per Capita ◽  
The Relationship

This paper analyses the relationship between bank credit and economic growth. We extend existing literature by treating separately the oil and non-oil sectors of 28 oil-dependent economies from 1990-2012. We employ panel cointegration and pooled mean group estimation techniques which are appropriate for drawing conclusions from dynamic heterogenous panels. The results of the panel cointegration test indicate that bank credit has no significant long-run relationship with non-oil GDP per capita. The results of the pooled mean group estimator reveal no significant long-run impact of bank credit on non-oil GDP per capita. Overall results suggest that banks do not yet provide adequate credit to stimulate non-oil economic growth. The policy implication of our findings is that the financial sector should be more involved in productive investment activities to promote inclusive growth.

scholarly journals The Relationship Between Education Outputs, Education Expenditure, and Economic Growth in Saudi Arabia

2021 ◽  
Vol 12 (2) ◽  
pp. 320
Author(s):  
Benlaria Houcine ◽  
Messen Kerroumia ◽  
Emad Abdel Khalek Saber El-Tahan ◽  
Tarig Osman Abdallah Helal
Keyword(s):  
Economic Growth ◽  
Saudi Arabia ◽  
Gdp Per Capita ◽  
Education Expenditure ◽  
Distributed Lag ◽  
Long Run ◽  
Per Capita ◽  
Economic Growth Rates ◽  
The Relationship

The present study investigated the relationship between education outputs, Education expenditure, and economic growth in Saudi Arabia for the time period of 1986–2016. The results obtained after employing the Autoregressive Distributed Lag (ARDL) model revealed a long-term relationship between the studied variables, an inverse relationship between the number of graduates and growth in the long term, whereas a non-significant positive relationship appeared in the short -term. Findings indicate also that public spending in education has a positive and significant impact on economic growth in the long run. Furthermore, he observed that a 1% increase in public expenditure in education contributes 18% increase in GDP per capita in the long run. This is in line with economic theory and previous research showing that expenditure on education leads to a rise in GDP per capita and economic growth rates. The recommendations of this study are fundamental to the Kingdom of Saudi Arabia.

scholarly journals An Empirical Analysis on the Relationship between Health Care Expenditures and Economic Growth in the European Union Countries

2018 ◽  
Vol 2 (1) ◽  
pp. 12
Author(s):  
Çiğdem Börke Tunalı ◽  
Naci Tolga Saruç
Keyword(s):  
Economic Growth ◽  
European Union ◽  
Health Expenditure ◽  
Gdp Per Capita ◽  
The European Union ◽  
Long Run ◽  
European Union Countries ◽  
Short Run ◽  
Per Capita ◽  
The Relationship

This paper empirically investigates the relationship between health expenditure and economic growth in the European Union countries over the period 1995-2014. By using the Dumitrescu-Hurlin Test (Dumitrescu and Hurlin, 2012) which is developed to test Granger causality in panel datasets (Lopez and Weber, 2017), it is found that there is a unidirectional relationship between these variables and gross domestic product (GDP) per capita Granger causes health expenditure per capita. After determining the direction of the relationship between health expenditure per capita and GDP per capita we estimate the short run and the long run effects of GDP per capita on health expenditure per capita by using Mean Group (MG) and Pooled Mean Group (PMG) estimators which are developed by Pesaran and Smith (1995) and Pesaran, Shin and Smith (1999) respectively. According to the estimation results, GDP per capita has a positive effect on health expenditure per capita both in the short run and the long run.

scholarly journals An Empirical Analysis on the Relationship between Health Care Expenditures and Economic Growth in the European Union Countries

2021 ◽  
Vol 4 (2) ◽  
pp. 11
Author(s):  
Çiğdem Börke Tunalı ◽  
Naci Tolga Saruç
Keyword(s):  
Economic Growth ◽  
European Union ◽  
Health Expenditure ◽  
Gdp Per Capita ◽  
The European Union ◽  
Long Run ◽  
European Union Countries ◽  
Short Run ◽  
Per Capita ◽  
The Relationship

This paper empirically investigates the relationship between health expenditure and economic growth in the European Union countries over the period 1995-2014. By using the Dumitrescu-Hurlin Test (Dumitrescu and Hurlin, 2012) which is developed to test Granger causality in panel datasets (Lopez and Weber, 2017), it is found that there is a unidirectional relationship between these variables and gross domestic product (GDP) per capita Granger causes health expenditure per capita. After determining the direction of the relationship between health expenditure per capita and GDP per capita we estimate the short run and the long run effects of GDP per capita on health expenditure per capita by using Mean Group (MG) and Pooled Mean Group (PMG) estimators which are developed by Pesaran and Smith (1995) and Pesaran, Shin and Smith (1999) respectively. According to the estimation results, GDP per capita has a positive effect on health expenditure per capita both in the short run and the long run.

The relationship between energy consumption and economic growth: New evidence from Greece

2021 ◽  
pp. 131-153
Author(s):  
Antonia Gkergki
Keyword(s):  
Economic Growth ◽  
Energy Consumption ◽  
Gdp Per Capita ◽  
Short Term ◽  
Vector Error Correction ◽  
Per Capita ◽  
Econometric Tests ◽  
The Government ◽  
New Research ◽  
The Relationship

This paper examines the relationship between the energy consumption and economic growth from 1968 to 2019 in Greece, by employing the vector error-correction model estimation. A series of econometric tests are employed concerning the stationary of the data, and the co-integration and the relationship among the variables during the long- and short-term. The em-pirical results suggest that there is no bidirectional relationship between economic growth and energy consumption. More specifically, GDP per capita does not affect the energy consump-tion of the three primary sources either in the long-term or the short-term. In other words, the economic crisis and its implications for GDP do not affect energy consumption, and they are not responsible for the considerable decrease in energy sources' consumption. On the other hand, the energy consumption of oil and coal negatively affect the GDP per capita. These re-sults are different from previous studies' conclusions for Greece; this is because the never been experienced before. These findings raise new research questions and also show the limi-tations of the Greek market, as it is regulated and controlled by the government.

The Relationship Among Military Expenditure, High Technological Product Exports, and Economic Growth

2021 ◽  
pp. 624-645
Author(s):  
Sevgi Sezer
Keyword(s):  
Economic Growth ◽  
Panel Data Analysis ◽  
Military Expenditure ◽  
Gdp Per Capita ◽  
High Tech ◽  
Industrialized Countries ◽  
G7 Countries ◽  
Causality Relationship ◽  
Per Capita ◽  
The Relationship

In this chapter, the effects of military expenditure (MEXP) on high-tech exports (HTX) and GDP per capita (GDPPC) of G7 and new industrialized countries (NIC) are analyzed for period 1988-2015 by panel data analysis. The causality relationships between the series are examined by Dumitrescu and Hurlin test. In G7 countries, one-way causality relationship from HTX to MEXP and two-way causality relationship between MEXP and GDPPC have been identified. Also, in NIC countries, two-way causality relationship between HTX and MEXP and one-way causality relationship from GDPPC to MEXP have been determined. Cointegration relations are tested by Pedroni test and the series are found to be cointegrated. It is seen that in the G7 countries, 1% increase in MEXP during the period of 1988-2015 increased HTX by 0.71% and GDPPC by 0.98%. In NIC countries, the 1% increase in MEXP increased HTX by 1.7% and GDPPC by 0.96%. The effect of MEXP on HTX is found much higher in NIC countries.

Panel Data Analysis of Financial Development, Trade Openness, and Economic Growth: Evidence from BRICS Countries

2018 ◽  
Vol 4 (1) ◽  
pp. 1-18 ◽  
Author(s):  
Ritu Rani ◽  
Naresh Kumar
Keyword(s):  
Economic Growth ◽  
Trade Openness ◽  
Panel Cointegration ◽  
Least Square ◽  
Cointegration Test ◽  
Ordinary Least Square ◽  
Brics Countries ◽  
Long Run ◽  
Panel Granger Causality ◽  
Panel Cointegration Test

The purpose of this article is to investigate the possible cointegration and direction of causality between foreign direct investment (FDI) inflow, trade openness, and economic growth in BRICS countries using panel data from 1993 to 2015. Besides these variables, money supply and domestic credit (DC) to private players are also added in the model to examine the impact of financial openness on economic growth. The Pedroni’s panel cointegration test is used to examine the existence of long-run relationship, and coefficients of cointegration are examined by fully modified ordinary least square (FMOLS) and dynamic ordinary least square (DOLS). Further panel Granger causality test is used to examine the direction of causality among the competing variables. The results of Pedroni’s panel cointegration test indicate that there exists a long-run relationship among the variables under considerations in BRICS countries. The coefficient of FMOLS and DOLS indicates that trade openness has a positive impact on economic growth in BRICS countries while FDI inflow has a negative impact in these nations. In addition, the results of panel Granger causality confirmed bidirectional causality between FDI inflow and economic growth in the short run. The study recommends that BRICS countries should liberalize trade openness as it strengthens the position of member countries in the world economy.

Investigating energy consumption and economic growth for BRICS-T countries

2019 ◽  
Vol 16 (4) ◽  
pp. 184-195 ◽  
Author(s):  
Durmuş Çağrı Yıldırım ◽  
Seda Yıldırım ◽  
Isıl Demirtas
Keyword(s):  
Economic Growth ◽  
Energy Consumption ◽  
Energy Savings ◽  
Panel Cointegration ◽  
Cointegration Test ◽  
Real Output ◽  
Content Type ◽  
Natural Logarithm ◽  
Panel Cointegration Test ◽  
The Relationship

Purpose The purpose of this paper is to explore the relationship between energy consumption and economic growth for Brazil, Russia, China, India, South Africa and Turkey (BRICS-T) countries. In this context, this study investigates energy consumption and real output in BRICS-T countries through panel cointegration. Design/methodology/approach The data include energy consumption and real output for BRICS-T countries and period of 1990–2014. The variables are transformed into natural logarithm. To analyze these data, this study employed Pedroni cointegration test, the second-generation panel cointegration test, Westerlund and Edgerton (2008) test and FMOLS test. Findings Results indicate that there is a bi-directional causality relationship between energy consumption and economic growth for BRICS-T countries. An increase in GDP leads to an increase in energy consumption and an increase in energy consumption leads to an increase in GDP. Research limitations/implications This study used data that include the period of 1990–2014 for BRICS-T countries. So, further studies can use different periods of data or different countries. Originality/value This study provides important evidence that countries with strong growth performance need to follow bi-directional energy policies to increase both energy investments and ensure energy savings.

scholarly journals The Corruption-Terrorism Nexus: A Panel Data Approach

2016 ◽  
Vol 8 (11) ◽  
pp. 111 ◽  
Author(s):  
Nahil Boussiga ◽  
Malek Ghdamsi
Keyword(s):  
Panel Cointegration ◽  
Political Stability ◽  
Cointegration Test ◽  
Correction Model ◽  
Major Threat ◽  
Long Run ◽  
Cointegration Tests ◽  
Panel Cointegration Test ◽  
The Relationship ◽  
Control Of Corruption

<p>Corruption has been increasingly recognized as the major threat to economic development, political stability and peace. It is also acknowledged by international community as the breeding ground for terrorism. This paper examines the relationship between corruption and terrorism in the long run. Previous studies examining the link between these two phenomena used only time series cointegration tests. In this paper, we make use of a dataset for a panel of 123 developed and developing countries over the period 2003-2014. We use Pedroni’s residual-based panel cointegration test and the error correction model-based panel cointegration test developed by Westerlund. In order to obtain more robust results, we use two different measures of corruption which are Corruption Perceptions Index (CPI) and Worldwide Control of Corruption Indicator (CC). The results of both tests reject the null hypothesis of no cointegration. we conclude that corruption and terrorism converge. Our findings corroborate results of previous studies.</p>

Cointegration-causality analysis between terrorism and key macroeconomic indicators

2014 ◽  
Vol 41 (8) ◽  
pp. 664-682 ◽  
Author(s):  
Aisha Ismail ◽  
Shehla Amjad
Keyword(s):  
Research Work ◽  
Cointegration Analysis ◽  
Gdp Per Capita ◽  
Gdp Growth ◽  
Data Set ◽  
Content Type ◽  
Long Run ◽  
Macroeconomic Indicators ◽  
Per Capita ◽  
The Relationship

Purpose – The purpose of this paper is two folds: first, to analyze the long-run relationship between terrorism and key macroeconomic indicators (GDP growth, GDP per capita, inflation and unemployment) and second, to determine the direction of causality between these variables in Pakistan. Design/methodology/approach – The relationship between terrorism and various macroeconomic indicators is analyzed by applying Johansen cointegration analysis. Furthermore, the causality between terrorism and macroeconomic indicators is tested by applying Toda Yamamoto Granger causality test. Findings – The results show that there exists a long-run relationship between terrorism and key macroeconomic indicators. Furthermore, the results suggest that there exists a bi-directional causality between terrorism and inflation. The causality between GDP per capita, unemployment, GDP growth and terrorism is unidirectional. Originality/value – There is a lack of research work conducted to analyze the long-run relationship and direction of causation between terrorism and various macroeconomic indicators specifically for Pakistan. The current paper fills the gap in the literature by using sophisticated econometric techniques and recent data set to provide the evidence of the relationship between terrorism and various macroeconomic indicators.

scholarly journals Dynamic linkages between renewable energy, carbon emissions and economic growth through nonlinear ARDL approach: Evidence from Iran

PLoS ONE ◽  
2021 ◽  
Vol 16 (7) ◽  
pp. e0253464
Author(s):  
M. S. Karimi ◽  
S. Ahmad ◽  
H. Karamelikli ◽  
D. T. Dinç ◽  
Y. A. Khan ◽  
...  
Keyword(s):  
Economic Growth ◽  
Renewable Energy ◽  
Energy Consumption ◽  
Carbon Emissions ◽  
Gdp Per Capita ◽  
Bounds Testing ◽  
Renewable Energy Consumption ◽  
Economic Implications ◽  
Long Run ◽  
Per Capita

This study examines the relationship between economic growth, renewable energy consumption, and carbon emissions in Iran between 1975–2017, and the bounds testing approach to cointegration and the asymmetric method was used in this study. The results reveal that in the long run increase in renewable energy consumption and CO2 emissions causes an increase in real GDP per capita. Meanwhile, the decrease in renewable energy has the same effect, but GDP per capita reacts more strongly to the rise in renewable energy than the decline. Besides, in the long run, a reduction of CO2 emissions has an insignificant impact on GDP per capita. Furthermore, the results from asymmetric tests suggest that reducing CO2 emissions and renewable energy consumption do not have an essential role in decreasing growth in the short run. In contrast, an increase in renewable energy consumption and CO2 emissions do contribute to boosting the growth. These results may be attributable to the less renewable energy in the energy portfolio of Iran. Additionally, the coefficients on capital and labor are statistically significant, and we discuss the economic implications of the results and propose specific policy recommendations.

Sign in / Sign up

Export Citation Format

Share Document