scholarly journals The Causality between Education and GDP Growth in Asian Countries

2015 ◽  
Vol 50 ◽  
pp. 28-35 ◽  
Author(s):  
Mohsen Mehrara ◽  
Maysam Musai
Keyword(s):  
Economic Growth ◽  
Formal Education ◽  
Panel Cointegration ◽  
Capital Formation ◽  
Cointegration Analysis ◽  
Point Of View ◽  
Asian Countries ◽  
Variable Model ◽  
Long Run ◽  
Educational Investments

This paper investigates the causal relationship between education and GDP in 40 Asian countries by using panel unit root tests and panel cointegration analysis for the period 1970-2010. A three-variable model is formulated with capital formation as the third variable. The results show a strong causality from investment and economic growth to education in these countries. Yet, education does not have any significant effects on GDP and investment in short- and long-run. It means that it is the capital formation and GDP that drives education in mentioned countries, not vice versa. So the findings of this paper support the point of view that it is higher economic growth that leads to higher education proxy. It seems that as the number of enrollments raise, the quality of the education declines. Moreover, the formal education systems are not market oriented in these countries. This may be the reason why huge educational investments in these developing countries fail to generate higher growth. By promoting practice-oriented training for students particularly in technical disciplines and matching education system to the needs of the labor market, it will help create long-term jobs and improve the country’s future prospects.

scholarly journals The Relationship between Economic Growth and Human Capital in Developing Countries

2013 ◽  
Vol 5 ◽  
pp. 55-62 ◽  
Author(s):  
Mohsen Mehrara ◽  
Maysam Musai
Keyword(s):  
Economic Growth ◽  
Developing Countries ◽  
Formal Education ◽  
Panel Cointegration ◽  
Capital Formation ◽  
Cointegration Analysis ◽  
Point Of View ◽  
Variable Model ◽  
Long Run ◽  
Educational Investments

This paper investigates the causal relationship between education and GDP in developing countries by using panel unit root tests and panel cointegration analysis for the period 1970-2010. A three-variable model is formulated with capital formation as the third variable. The results show a strong causality from investment and economic growth to education in these countries. Yet, education does not have any significant effects on GDP and investment in short- and long-run. It means that it is the capital formation and GDP that drives education in mentioned countries, not vice versa. So the findings of this paper support the point of view that it is higher economic growth that leads to higher education proxy. It seems that as the number of enrollments raise, the quality of the education declines. Moreover, the formal education systems are not market oriented in these countries. This may be the reason why huge educational investments in these developing countries fail to generate higher growth. By promoting practice-oriented training for students particularly in technical disciplines and matching education system to the needs of the labor market, it will help create long-term jobs and improve the country’s future prospects.

scholarly journals The Causality between Capital Formation and Economic Growth in MENA Region

2013 ◽  
Vol 8 ◽  
pp. 1-7 ◽  
Author(s):  
Mohsen Mehrara ◽  
Maysam Musai
Keyword(s):  
Economic Growth ◽  
North Africa ◽  
Panel Cointegration ◽  
Cointegration Analysis ◽  
Point Of View ◽  
Sustainable Growth ◽  
Domestic Investment ◽  
Mena Region ◽  
Long Run ◽  
Strong Causality

This paper investigates the causal relationship between gross domestic investment (INV) and GDP for Middle East and North Africa (MENA) region countries by using panel unit root tests and panel cointegration analysis for the period 1970-2010. The results show a strong causality from economic growth to investment in these countries. Yet, investment does not have any significant effects on GDP in short- and long-run. It means that it is the GDP that drives investment in mentioned countries, not vice versa. So the findings of this paper support the point of view that it is higher economic growth that leads to higher investment. According to the results, decision makings should be employed to achieve sustainable growth through higher productivity and substantially enlarging the economic base diversification in the future

Export-led Growth Hypothesis in MINT Countries: A Panel Cointegration Analysis

2017 ◽  
Author(s):  
Harun Bal ◽  
Shahanara Basher ◽  
Abdulla Hil Mamun ◽  
Emrah Akça
Keyword(s):  
Economic Growth ◽  
Large Population ◽  
Panel Cointegration ◽  
Secondary Data ◽  
Capital Formation ◽  
Cointegration Analysis ◽  
Promotion Strategy ◽  
Key Factor ◽  
Good Number ◽  
Growth Hypothesis

The contribution of exports to GDP in MINT countries that improve substantially just after their implantation of export promotion strategy in the late 1980s raises the issue of whether the growth in these countries is led by export or not. While a good number of studies have been found investigating whether economic growth is promoted by exports for developing countries having an outstanding share of export in GDP, no study investigating the export-led growth hypothesis for MINT countries has been found until recent times. The main purpose of this study is to fill up the void. The study employs panel cointegration technique with an aim to examine whether the export is the key factor of economic growth for MINT countries employing yearly secondary data that covers the period. Results of the study imply that economic growth of these countries is considerably exports driven. Moreover, there is an indication of improvement of efficiency as exports work along with the rise capital formation. As the employment opportunity of an economy is expanded through capital formation, the emerging MINT countries endowed with large population and favorable demographics are expected to become the major exporters with strong GDP growth by being able to attract adequate foreign investment.

scholarly journals Investment and Saving Nexus in Asian Countries: Panel Cointegration and Causality

2013 ◽  
Vol 18 ◽  
pp. 1-7 ◽  
Author(s):  
Mohsen Mehrara ◽  
Maysam Musai
Keyword(s):  
Unit Root ◽  
Panel Cointegration ◽  
Cointegration Analysis ◽  
Unit Root Tests ◽  
Domestic Investment ◽  
Panel Unit Root Tests ◽  
Asian Countries ◽  
Panel Unit Root ◽  
Long Run ◽  
Saving Rates

This paper investigates the causal relationship between gross domestic investment (INV) and saving rates for 40 Asian countries by using panel unit root tests and panel cointegration analysis for the period 1970-2010. The results indicate no long run relationship as well as no causalities between these two variables in these countries. The findings are attributed to non stationary deficits or surpluses in current accounts.

scholarly journals Education and Economic Growth in NER States of India: A Panel Cointegration Analysis

2018 ◽  
Vol 14 (2) ◽  
pp. 89-105
Author(s):  
Md. Samsur Jaman
Keyword(s):  
Economic Growth ◽  
Social Welfare ◽  
Panel Data Analysis ◽  
Panel Cointegration ◽  
Cointegration Analysis ◽  
Eastern Region ◽  
Social Sector ◽  
Long Run ◽  
North Eastern ◽  
Social Expenditures

The main purpose of this study is examines the long run relationship between social expenditures and economic growth in North-Eastern states of India. The long run impact of expenditures in social sector such as education, health and social welfare on economic growth is investigated by applying the Pedroni’s panel Cointegration using balanced panel data analysis of eight (8) North Eastern states over the period from 2000 to 2014. In this study empirical analysis suggest the existence of dynamic relationship among expenditures on education, health and social welfare and economic growth for all cases of eight sample states. The study concludes that expenditures in the social sector can affect economic growth. Such social expenditures enhance productivity by providing infrastructure, education, health and harmonizing social interests. Thus, expenditure composition can also play an important role in promoting economic growth in North-Eastern region.

scholarly journals Nexus Between Carbon Emissions, Energy Consumption, Urbanization and Economic Growth in Asia: Evidence From Common Correlated Effects Mean Group Estimator (CCEMG)

2021 ◽  
Vol 8 ◽  
Author(s):  
Yusuf Babatunde Adeneye ◽  
Amar Hisham Jaaffar ◽  
Chai Aun Ooi ◽  
Say Keat Ooi
Keyword(s):  
Economic Growth ◽  
Energy Consumption ◽  
Carbon Emission ◽  
Panel Cointegration ◽  
Energy Prices ◽  
Asian Countries ◽  
Cross Sectional ◽  
Long Run ◽  
Cointegration Tests ◽  
Common Correlated Effects

This study investigates the dynamic relationships between carbon emission, urbanization, energy consumption, and economic growth in a panel of 42 Asian countries for the period 2000–2014 using dynamic common correlated effects panel data modeling. This study employs second generation cross-sectional Pesaran (J. Appl. Econom., 2007, 22(2), 265-312) panel unit root, Westerlund panel cointegration tests (Econom. Stat., 2007, 69(6), 709-748), and Pesaran’s (Econometrica, 2006, 74(4), 967-1012) common correlated effects mean group estimation technique. These approaches allow for cross-sectional dependence, and are robust to the presence of common factors, serial correlation, and slope heterogeneity. The Common Correlated Effect Mean Group test reveals a high average coefficient of 0.602 between carbon emission and energy consumption while low coefficients of 0.114 and 0.184 for the pairs of carbon emission-urbanization and carbon emission-GDP, respectively for the panel as a whole, suggesting a cointegration between carbon emission, urbanization, energy consumption, and economic growth. The results indicate that there is relatively high carbon emission especially for highly populated and geopolitical risk Asian countries in the short run. Findings reveal long run relationships between the variables, which is attributed to the on-going carbon taxation and energy prices. Our results are robust to PMG-ARDL estimator. Overall, these findings cast important implications on renewable energy policy and urban planning insights for the policymakers.

scholarly journals Energy and economic growth in G20 countries: Panel cointegration analysis

2020 ◽  
Vol 9 (2) ◽  
pp. 56 ◽  
Author(s):  
Aynur Pala
Keyword(s):  
Economic Growth ◽  
Global Warming ◽  
Energy Consumption ◽  
Energy Demand ◽  
Panel Cointegration ◽  
Cointegration Analysis ◽  
Vector Error Correction ◽  
Long Run ◽  
Equilibrium Relationship ◽  
Dynamic Ols

Rising economic performance has enlarged energy demand, carbon emissions and global warming. Policymakers need to avoid global warming. Therefore, energy-growth nexus is important. This paper empirically investigates the relationship between energy consumption and economic growth for a panel of G20 countries over the period 1990-2016. For this purpose, the paper considers the panel cointegration and panel vector error correction model. Panel cointegration test set out a long-run equilibrium relationship. Long-run relationship is estimated using a Fully Modified OLS (FMOLS) and Dynamic OLS (DOLS). The results show that causality run from energy consumption to GDP. It is indicates that “growth hypothesis” is valid for G20 countries.

scholarly journals The Relationship between Non-Oil Trade and GDP in Petroleum Exporting Countries

2013 ◽  
Vol 12 ◽  
pp. 63-70 ◽  
Author(s):  
Mohsen Mehrara
Keyword(s):  
Panel Cointegration ◽  
Cointegration Analysis ◽  
Sustainable Growth ◽  
Unit Root Tests ◽  
Panel Unit Root Tests ◽  
Variable Model ◽  
Long Run ◽  
Strong Causality ◽  
Oil Revenues ◽  
The Relationship

This paper investigates the causal relationship between non-oil international trade and the GDP in a panel of 11 selected oil exporting countries by using panel unit root tests and panel cointegration analysis. A three-variable model is formulated with oil revenues as the third variable. The results show a strong causality from oil revenues and economic growth to trade in the oil exporting countries. Yet, non-oil trade does not have any significant effects on GDP in short- and long-run. It means that it is the oil and GDP that drives the trade in mentioned countries, not vice versa. According to the results, decision makings should be employed to achieve sustainable growth through higher productivity and substantially enlarging the economic base diversification in the future.

Sign in / Sign up

Export Citation Format

Share Document