scholarly journals Econometric estimation of the relationship between the unemployment rate and economic growth in Limpopo Province, South Africa

2020 ◽  
Vol 58 (4) ◽  
Author(s):  
Tshephi Kingsley Thaba ◽  
Abenet Belete ◽  
Johannes Jan Hlongwane ◽  
Lesetja Jacob Ledwaba
Keyword(s):  
Economic Growth ◽  
South Africa ◽  
Granger Causality ◽  
Unemployment Rate ◽  
Granger Causality Test ◽  
Limpopo Province ◽  
Economic Policies ◽  
Difference Model ◽  
Causality Test ◽  
The Relationship

Abstract. The study aims to estimate empirically the relationship between economic growth and unemployment rate in Limpopo Province of South Africa. The analysis used quarterly data covering the period 2008-2018 which was obtained from Statistics South Africa. The study employed, difference model, dynamic model, and granger causality test for data analysis, in order to consider both, short term and long term possible relationship Based on the difference model estimation of the coefficient was done and the coefficient was found to be -0.22. From Granger causality test, causal relationship between these two variables doesn’t exist meaning that change in the growth rate of real GDP doesn’t cause change in the rate of unemployment and vice-versa. Inapplicable of the law indicates that a cyclical recovery will not be accompanied by reduction of unemployment. Furthermore, this might reflect the sizable structural and/or frictional component of unemployment in Limpopo Province. Lastly, the country's economic policies have not been suitable for fostering development that can reduce unemployment and this could be due to lack of appropriate composition of public sector and private sector.

scholarly journals THE DIRECTION ANALYSIS OF CAUSALITY BETWEEN ECONOMIC AND BANK CREDIT GROWTH IN SOUTH AFRICA

2016 ◽  
Vol 1 (2) ◽  
pp. 42
Author(s):  
Dr. Goodman Chakanyuka
Keyword(s):  
Economic Growth ◽  
South Africa ◽  
Business Cycles ◽  
Granger Causality ◽  
Granger Causality Test ◽  
Bank Credit ◽  
Causality Test ◽  
Credit Growth ◽  
Study Results ◽  
The Relationship

Purpose: The purpose of this study was to Analyze of the Relationship between Business Cycles and Bank Credit Extension: Evidence from South Africa. The study sought establish the direction of causality between economic growth and bank credit growth in South AfricaMethodology: The econometric methodology is used to augment results of the survey study. Granger causality test technique is applied to the variables of interest to test for direction of causation between variables. The study uses quarterly data for the period of 1980: Q1 to 2013: Q4. Business cycles are determined and measured by Gross Domestic Product at market prices while bank-granted credit is proxied by credit extension to the private sector.Results: Results revealed that, that there is a stable long-run relationship between macro-economic business cycles and real credit growth in South Africa. The results show that economic growth significantly causes and stimulates bank credit. The Granger causality test provides evidence of unidirectional causal relationship with direction from economic growth to credit extension for South Africa. The study results indicate that the case for demand-following hypothesis is stronger than supply-leading hypothesis in South Africa. Economic growth spurs credit market development in South Africa.Unique contribution to theory, practice and policy: It proposes practical policy prescriptions to address challenges currently facing South Africa. The other major contribution of this study is that it shall open new avenues for further research on finding causality of the relationship between various proxies of economic growth and financial development adopting the VAR framework

ANALYSIS OF THE LONG-RUN RELATIONSHIP BETWEEN ECONOMIC GROWTH AND BANK CREDIT AVAILABILITY IN SOUTH AFRICA.

2017 ◽  
Vol 1 (1) ◽  
pp. 1
Author(s):  
Goodman Chakanyuka
Keyword(s):  
Economic Growth ◽  
South Africa ◽  
Business Cycles ◽  
Granger Causality ◽  
Granger Causality Test ◽  
Bank Credit ◽  
Causality Test ◽  
Credit Growth ◽  
Long Run ◽  
The Relationship

Purpose: The purpose of this study was to Analyze of the Relationship between Business Cycles and Bank Credit Extension: Evidence from South Africa. The study sought establish the direction of causality between economic growth and bank credit growth in South AfricaMethodology: The econometric methodology is used to augment results of the survey study. Granger causality test technique is applied to the variables of interest to test for direction of causation between variables. The study uses quarterly data for the period of 1980: Q1 to 2013: Q4. Business cycles are determined and measured by Gross Domestic Product at market prices while bank-granted credit is proxied by credit extension to the private sector.Results: Results revealed that, that there is a stable long-run relationship between macro-economic business cycles and real credit growth in South Africa. The results show that economic growth significantly causes and stimulates bank credit. The Granger causality test provides evidence of unidirectional causal relationship with direction from economic growth to credit extension for South Africa. The study results indicate that the case for demand-following hypothesis is stronger than supply-leading hypothesis in South Africa. Economic growth spurs credit market development in South Africa.Unique contribution to theory, practice and policy: It proposes practical policy prescriptions to address challenges currently facing South Africa. The other major contribution of this study is that it shall open new avenues for further research on finding causality of the relationship between various proxies of economic growth and financial development adopting the VAR framework

The relationship between financial development and economic growth in Eswatini (formerly Swaziland)

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Siphe-okuhle Fakudze ◽  
Asrat Tsegaye ◽  
Kin Sibanda
Keyword(s):  
Economic Growth ◽  
Granger Causality ◽  
Financial Development ◽  
Granger Causality Test ◽  
Causality Test ◽  
Content Type ◽  
Distributed Lag ◽  
Long Run ◽  
Short Run ◽  
The Relationship

PurposeThe paper examined the relationship between financial development and economic growth for the period 1996 to 2018 in Eswatini.Design/methodology/approachThe Autoregressive Distributed Lag bounds test (ARDL) was employed to determine the long-run and short-run dynamics of the link between the variables of interest. The Granger causality test was also performed to establish the direction of causality between financial development and economic growth.FindingsThe ARDL results revealed that there is a long-run relationship between financial development and economic growth. The Granger causality test revealed bidirectional causality between money supply and economic growth, and unidirectional causality running from economic growth to financial development. The results highlight that economic growth exerts a positive and significant influence on financial development, validating the demand following hypothesis in Eswatini.Practical implicationsPolicymakers should formulate policies that aims to engineer more economic growth. The policies should strike a balance between deploying funds necessary to stimulate investment and enhancing productivity in order to enliven economic growth in Eswatini.Originality/valueThe study investigates the finance-growth linkage using time series analysis. It determines the long-run and short-run dynamics of this relationship and examines the Granger causality outcomes.

The Empirical Research between China's Scientific and Technological Investment and Economic Growth

2013 ◽  
Vol 444-445 ◽  
pp. 1607-1611
Author(s):  
Ying Lei
Keyword(s):  
Economic Growth ◽  
Granger Causality ◽  
Technological Progress ◽  
Science And Technology ◽  
Growth Index ◽  
Granger Causality Test ◽  
Sample Period ◽  
Causality Test ◽  
Financial Investment ◽  
The Relationship

In order to explore the relationship between China's scientific and technological progress and economic growth, granger test is been used on investment in science and technology and economic growth based on the sample period (1995-2010) of economic data.The experimental results show that : the scientific and technological progress and economic growth are each other's Granger causes. The paper divide the investment of science and technology into the manpower investment and financial investment in the analysis of economic growth and investment of science and technology the causality, then do Granger causality test on economic growth index GDP.

Exploring the Relationship between Industrial Economic Growth and Environmental Pollution - An Empirical Analysis Based on Cointegration and Granger Causality Test

2013 ◽  
Vol 423-426 ◽  
pp. 1377-1382
Author(s):  
Chao Wang ◽  
Jiang Liu ◽  
Li Huang ◽  
Wei Li
Keyword(s):  
Economic Growth ◽  
Environmental Pollution ◽  
Granger Causality ◽  
Granger Causality Test ◽  
Industrial Emissions ◽  
Causality Test ◽  
Pollution Emission ◽  
The Relationship ◽  
Cointegration Relationship ◽  
Industrial Economic

This paper aims at investigating the cointegration relationship between industrial economic growth and environmental pollutions from the timing dimension by using three types of environmental pollution indicators of industrial emissions and going further to test whether this relationship is bidirectional Granger causality. Firstly, the cointegration analysis’ result shows that the relationship between industrial economic growth and environmental quality may not meet the hypothesis of EKC curve. In the timing period analyzed, the relationship is linear and positive. Hence, promoting the relationship to be negative when only relying on self-regulation of the market will probably not be achieved. Secondly, based on cointegration test, this paper goes further to conduct Granger causality test of cointegration relationship. The result shows industrial economic growth causes pollution emission but it is not true vice versa. The reasons possibly include that that the technological progress in recent years may not embody on the reduction of pollution emission intensity, the absence of resources product market, the lack of tradable emission permits market and no effective incentives of green production behaviors of enterprises to react up on encouraging enterprises’ development. These generate external pressure to the transformation of industrial economic growth pattern.

scholarly journals An Econometric Analysis on Remittance and Economic Growth in Bangladesh

2020 ◽  
pp. 214-218
Author(s):  
Md Shafiul Islam
Keyword(s):  
Economic Growth ◽  
Time Series ◽  
Granger Causality ◽  
Time Series Data ◽  
Granger Causality Test ◽  
Causal Link ◽  
Series Data ◽  
Causality Test ◽  
External Finance ◽  
The Relationship

In Bangladesh, migrant worker’s remittances constitute one of the most significant sources of external finance. This paper investigates the existence of relation between remittance inflow and GDP and the causal link between them in Bangladesh by employing the Granger causality test under a VECM framework. Using time series data over a 38 year period, we found that growth in remittances does lead to economic growth in Bangladesh. In addition to the relationship, this paper also points out some issues that are working as impediments in getting remittance and give some recommendations to overcome those impediments.

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