scholarly journals GROWTH AND OPENNESS RELATIONSHIP IN THE EU15: PANEL DATA ANALYSIS

Ekonomika ◽  
2010 ◽  
Vol 89 (2) ◽  
pp. 44-54 ◽  
Author(s):  
Erginbay Uğurlu
Keyword(s):  
Economic Growth ◽  
Panel Data ◽  
Fixed Effects ◽  
Time Series Data ◽  
Negative Impact ◽  
Panel Data Analysis ◽  
Empirical Work ◽  
Series Data ◽  
The Impact ◽  
The Eu

Conventional wisdom suggests that openness of an economy promotes economic growth. There is still argument among economists concerning how a country’s macroeconomic variables and its economic growth interact in numerous econometric studies by using panel data. This paper examines the impact of openness on economic growth for the EU-15 area in 1996–2003. In our empirical work, we have used the panel data technique which is also called longitudinal data or cross-sectional time series data. Panel data is generally concerned with choosing among three alternative regressions that are named fixed effects, random effects and pooled model estimation. The variables used are growth, openness, price level, investment and government share of RGDP. We find that openness has had a weak but negative impact on economic growth in this region over this period. Also, we have found that an increase in investment and a decrease in government expenditure have supported economic growth in the EU-15 countries.

scholarly journals THE IMPACT OF EXCHANGE RATE VOLATILITY ON ECONOMIC GROWTH IN NIGERIA: A DYNAMIC ECONOMETRIC APPROACH

2021 ◽  
pp. 16-40
Author(s):  
Comfort Akinwolere Bukola ◽  
Keyword(s):  
Economic Growth ◽  
Exchange Rate ◽  
Time Series Data ◽  
Negative Impact ◽  
Positive Impact ◽  
Exchange Rate Volatility ◽  
Series Data ◽  
Balance Of Trade ◽  
Econometric Approach ◽  
The Impact

This study examined the impact of exchange rate volatility on economic growth in Nigeria. The study covers the period of 1986 to 2019. Using time series data, the methodology adopted is the Vector Error Correction Mechanism to explore the impact of exchange rate volatility on the selected macroeconomic variables. The result indicated that exchange rate volatility has a significant impact on economic growth, specifically it has a positive impact on inflation, unemployment and balance of trade. On the other hand it has a negative impact on economic growth and investment. The recommendations made include; that relevant authorities should try to avoid systematic currency devaluations in order to maintain exchange rate volatility at a rate that allows adjustment of the balance of payments.

scholarly journals Determinants of Income Inequality in EU Candidate Countries: A Panel Analysis

2019 ◽  
Vol 57 (4) ◽  
pp. 397-413
Author(s):  
Vesna Bucevska
Keyword(s):  
Income Inequality ◽  
Fixed Effects ◽  
Negative Impact ◽  
Panel Data Analysis ◽  
Potential Candidate ◽  
Eu Candidate Countries ◽  
Main Determinants ◽  
The Government ◽  
The Impact ◽  
The Eu

AbstractDespite increasing income per capita, the EU candidate and potential candidate countries remain confronted with high levels of income inequality. The purpose of our paper is to identify the main determinants of income inequality among the EU candidate countries. In addition to macroeconomic factors, we also analyze the impact of demographic variables to provide more reliable estimates. Using panel data analysis with fixed effects in the period 2005-2017 for three EU candidate countries (North Macedonia, Serbia and Turkey) we find that the unemployment rate, the level of economic development and the investment rate are the main determinants whose increase leads to a bigger income differentiation in the analyzed countries. The government indebtedness has also a statistically significant, but a negative impact on income inequality. The other two macroeconomic variables in the model – the terms of trade and inflation are statistically insignificant. Among the demographic factors, population growth and education significantly affect income inequality among the EU candidate countries. The obtained results suggest that a sustainable economic growth combined with active measures in the labor market and the improvement of education level of the population could lead to more equal income distribution.

scholarly journals The Consequences of Corruption on Economic Growth in Mediterranean Countries: Evidence from Panel Data Analysis

2018 ◽  
Author(s):  
Hicham Boussalham
Keyword(s):  
Economic Growth ◽  
Fixed Effects ◽  
Negative Impact ◽  
Panel Data Analysis ◽  
Suitable Model ◽  
Fixed Effects Model ◽  
Mediterranean Countries ◽  
Individual Effects ◽  
The Individual ◽  
The Impact

This study attempts to assess the impact of corruption on economic growth in the Mediterranean countries, during the period from 1998 to 2007. Econometric analysis using panel regression has been adopted to test this effect. Individual effects models such as random effects model and fixed effects model were applied to the study sample of 160 observations, and to choose the suitable model, we implemented several tests. For our analysis, we used a basic model that includes the dependent variable GDP per capita as a factor of economic growth and the corruption perception index as the independent variable concerned. Then we completed the model with several standardized macroeconomic control variables mentioned above and applied the individual effects models. The outcomes illustrate that corruption has a negative impact on the selected Mediterranean countries’ economic growth.

scholarly journals The Impact of Foreign Direct Investment in the Western Balkan Countries - A Panel Data Analysis

2021 ◽  
Vol 16 (6) ◽  
pp. 1185-1190
Author(s):  
Nexhat Shkodra ◽  
Xhevat Sopi ◽  
Florentina Xhelili Krasniqi
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Panel Data ◽  
Random Effects ◽  
Direct Investment ◽  
Fixed Effects ◽  
Panel Data Analysis ◽  
Random Effects Model ◽  
Balkan Countries ◽  
The Impact

Foreign Direct Investment (FDI) has a significant effect on the economic growth and development of host economies, but also on international economic integration through globalization. Particular aspects of this topic are being extensively addressed by scientific research in recent decades. The purpose of this paper is to determine whether globalization and through it the Foreign Direct Investment (FDI) has an impact on the economic growth (GDPgr) of the Western Balkan countries which are facing a transitional phase. The relation between FDI and economic growth has been analyzed by employing econometric models with panel data approach: linear regression with poled data, the Fixed Effects model, and the Random-Effects model (GLS). The study is based on panel data of six countries for the period between 2004-2018, obtained by the World Bank. The results of the Random Effects model (GLS) shown that lagged FDI has a significant impact on the economic growth (GDPgr) of the Western Balkans (p<0.05%), as well as gross capital formation (Cap) and government expenditure (Gov) whereas export (Ex) has been excluded from the model. The results also shown that there are significant differences in the factors influencing economic growth among countries in the region (LM Method - Breusch-Pagan test; p=0.02455 < 0.05).

scholarly journals International Remittances and Economic Growth in Ghana: Does the Measure Of Financial Development Matter?

2020 ◽  
Vol 2 (1) ◽  
pp. 46-59 ◽  
Author(s):  
Samuel Antwi ◽  
Eugene Oware Koranteng ◽  
Eugene Oware Koranteng
Keyword(s):  
Economic Growth ◽  
Financial Development ◽  
Time Series Data ◽  
Negative Impact ◽  
Positive Impact ◽  
Series Data ◽  
Aggregate Output ◽  
Real Gdp ◽  
International Remittances ◽  
The Impact

Empirical results of the effect of international remittances on economic growth of individual countries and groups of countries have yielded mixed results. This study is intended to add to the debate on the impact of international remittances on the aggregate output of individual countries, Ghana in this case. An earlier panel data study found a negative impact of remittance on real GDP and prompted further research on the topic for individual countries and groups of countries. The papers which followed and were able to correct for endogeneity in the models, found a mild positive impact of private unrequited remittances on economic growth. The impact of remittances on economic growth of a particular country depends on the proportion of remittances invested and consumed, the level of financial development and the quality of institutions in the country. This study used time series data from 1990 to 2014 on Ghana and found a positive impact of remittances on the growth rate of real GDP. Engel and Granger Cointegration test and Error Correction Models were used. Remittances were found to be pro-cyclical. Granger causality tests which corrects for the errors of cointegrated variables found causality running from financial development to remittances and from remittances to real GDP. Remittances have been found in other studies to benefit the Ghanaian economy by reducing poverty and sustaining the current account. This study shows a positive impact of remittances on aggregate output. Thus requiring policies to increase the flows and encourage their investment. Keywords: International Remittances, Economic Growth, Ghana, Financial Development.

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.

scholarly journals The Impact of Renewable Energy Sources on Financial Development, and Economic Growth: The Empirical Evidence from an Emerging Economy

Energies ◽  
2021 ◽  
Vol 14 (23) ◽  
pp. 8033
Author(s):  
David Guan ◽  
Ubaldo Comite ◽  
Muhammad Safdar Sial ◽  
Asma Salman ◽  
Boyao Zhang ◽  
...  
Keyword(s):  
Economic Growth ◽  
Panel Data ◽  
Financial Development ◽  
Time Series Data ◽  
Renewable Energy Sources ◽  
Series Data ◽  
Cross Sectional ◽  
Renewable Sources ◽  
The Impact ◽  
The Relationship

Developing energy from renewable sources and modernizing the energy system are critical components of China’s efforts to combat climate change. Policymakers and authorities have made significant attempts to bring them. However, one of the major impediments to China’s energy revolution is financial limitations, which are inextricably linked to the country’s economic growth. The present research paper intends to investigate the relationship between economic growth and sustainable financial development on the use of energy from renewable sources in both the short and long run in the context of China. To achieve this, the researchers have utilized the panel data consisting of 10 years from 2011 to 2020. When compared to cross-sectional and time-series data samples, the panel data model offers many benefits. For starters, the panel data includes information on the passage of time and the cross-sectional area. Another benefit of using panel-data models with a larger degree of freedom is that they provide more stable and reliable estimates across short periods across cross-sections. In the case of the short run, there is a positive relationship between economic and financial development and the use of energy from renewable sources in the context of all of China. While in the case of long-term effects, the results indicate the adverse impact of financial development on the use of energy from renewable sources in the western regions of China. These results were deduced using the causality test Granger proposed to determine the path of the causal relationship and the direction of the relationship between the variables. These results indicated that the relationship between economic and financial development in east China was unidirectional, and the nature of the underlying relationship was causal. Meanwhile, in east and west China, economic development in China as a whole has been unidirectionally increasing energy from renewable sources. Our empirical findings suggest many strategies for promoting the growth of energy from renewable sources.

scholarly journals Economic growth and height of youth: a panel data analysis on 27 provinces in China, 1985–2014

2019 ◽  
Author(s):  
Ke Hong YU ◽  
Xiao Mei Gan ◽  
Xu WEN
Keyword(s):  
Economic Growth ◽  
Data Analysis ◽  
Panel Data ◽  
Fixed Effects ◽  
Panel Data Analysis ◽  
Practical Significance ◽  
Average Height ◽  
Longitudinal Surveys ◽  
Chinese Youth ◽  
The Impact

Abstract Background: This study aimed to empirically examine the influence of China’s macroeconomic development on the height of Chinese youth in the past 30 years, using provincial panel data collected from more than one million children. Methods: Panel data from seven longitudinal surveys (1985, 1991, 1995, 2000, 2005, 2010, and 2014) of the Chinese National Surveys on Students’ Constitution and Health, including students aged 7–22 years from 27 provinces, were utilized for data analysis. Fixed-effects models were used to estimate the association between economic growth and height. Results: For every 1% increase in per capita disposable income (PCDI), the average height of students significantly increased by approximately 0.009%. Stated another way, this implies that a doubling of income is associated with 0.9% increase in height, which is significant for height. The coefficient of PCDI in the last decade is higher than that of in the early two decades. The average height of boys was approximately 3.9% higher than that of girls. The average height difference between high and low ages in the sample was 1.9%. The impact of policies on students' height was extremely small and may have little practical significance. Conclusion: China’s economic growth has a significant positive effect on the height of urban Chinese students without stagnation.

scholarly journals The Impact of the Minimum Wage on Employment: An EU Panel Data Analysis

2021 ◽  
Vol 13 (16) ◽  
pp. 9359
Author(s):  
Cristian Valeriu Paun ◽  
Radu Nechita ◽  
Alexandru Patruti ◽  
Mihai Vladimir Topan
Keyword(s):  
Panel Data ◽  
Minimum Wage ◽  
Fixed Effects ◽  
Negative Impact ◽  
Panel Data Analysis ◽  
The Elderly ◽  
Special Focus ◽  
Female Workers ◽  
Cointegration Tests ◽  
The Impact

Minimum wage laws have become one of the most debated state interventions in the economy, being considered by many specialists as a very efficient tool used to correct certain labour market failures. The aim of this paper is to explore the relationship between minimum wage and employment dynamics, with a special focus on some vulnerable categories recognized in the literature (young people, female workers, the elderly, etc.). Thus, we analysed the relation between the dynamics of minimum wages and that of employment in 22 EU countries, panel data (1999–2016). The results suggest a negative impact of the minimum wage on total employment and on sensitive categories (youth, female workers, the elderly). The long-running negative impact holds for all but one group (55–64 years). The models were tested for random and fixed effects and the results were correspondingly adjusted with country and time and random and fixed effects. Cointegration tests and the tests using lagged minimum wage also confirm a robust relationship between the dynamics of the minimum wage and that of employment over time. Our findings are consistent with many previous studies and confirm the recommendations to prudently use this public policy tool.

scholarly journals The Consequences of Corruption on Economic Growth in Mediterranean Countries: Evidence from Panel Data Analysis

2018 ◽  
Author(s):  
Hicham Boussalham
Keyword(s):  
Economic Growth ◽  
Fixed Effects ◽  
Negative Impact ◽  
Panel Data Analysis ◽  
Suitable Model ◽  
Fixed Effects Model ◽  
Mediterranean Countries ◽  
Individual Effects ◽  
The Individual ◽  
The Impact

This study attempts to assess the impact of corruption on economic growth in the Mediterranean countries, during the period from 1998 to 2007. Econometric analysis using panel regression has been adopted to test this effect. Individual effects models such as random effects model and fixed effects model were applied to the study sample of 160 observations, and to choose the suitable model, we implemented several tests. For our analysis, we used a basic model that includes the dependent variable GDP per capita as a factor of economic growth and the corruption perception index as the independent variable concerned. Then we completed the model with several standardized macroeconomic control variables mentioned above and applied the individual effects models. The outcomes illustrate that corruption has a negative impact on the selected Mediterranean countries&rsquo; economic growth.

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