scholarly journals Impact of Domestic Public Debt on Economic Growth - An Empirical Study in the Indian Context

2016 ◽  
Vol 6 (4) ◽  
pp. 101-116
Author(s):  
Srinivasa Rao Gangadharan ◽  
Lakshmi Padmakumari
Keyword(s):  
Economic Growth ◽  
Granger Causality ◽  
Positive Impact ◽  
Least Square ◽  
Distributed Lag ◽  
Long Run ◽  
Domestic Debt ◽  
Integration Test ◽  
Ordinary Least Square Regression ◽  
The Impact

This study is an empirical investigation to assess the impact of domestic debt on India’s Economic growth during the period 1980 – 2014. We use data on Domestic Debt, Net Fiscal Deficit, Exports, Savings, Real Gross Domestic Product, Population and Terms of Trade. This study adopts the ARDL Co-Integration and Granger Causality techniques to investigate the relation between the key variables. The study also employs various post estimation tests to validate the fitness and stability of the models based on Gauss Markov assumptions, after employing the ordinary least square regression on various models. We find that debt negatively impacts economic growth while savings has a positive impact. The Auto Regressive Distributed Lag (ARDL) technique used to test the robustness suggests existence of co-integration among the variables. However, none of the long run co-efficient is significant. The granger causality and co-integration test results support the traditional view that debt negatively impacts economic growth.

scholarly journals Impact of Direct and Indirect Tax on the Nigerian Economic Growth

2017 ◽  
Vol 8 (3) ◽  
pp. 215 ◽  
Author(s):  
Oyebisi Mary Ogundana ◽  
Oyedele Mary Ogundana ◽  
Oyeyemi Mercy Ogundana ◽  
Ayodotun Stephen Ibidunni ◽  
Adebola Adetoyinbo
Keyword(s):  
Economic Growth ◽  
Positive Impact ◽  
Least Square ◽  
Annual Reports ◽  
Secondary Source ◽  
Tax System ◽  
Ordinary Least Square ◽  
Least Square Regression ◽  
Ordinary Least Square Regression ◽  
The Impact

This research examined the direct and indirect impact of taxation on the Nigerian economic growth. This research centered on two major objectives by focusing on the trend of direct and indirect tax and the impact of the Nigerian tax system on the growth of the economy.  The research adopted the descriptive research design.  The secondary source of data was also engaged as this data was from CBN statistical bulletin and the annual reports from 1994-2013. The research also used the ordinary least square regression technique. With the use of E-views 7.1 to analyze the data, the first objective was achieved by using graphical analysis while the second objective used ordinary least square regression analysis. The results reveal that the direct and indirect tax have a positive impact on the economy of Nigeria. Therefore, it is recommended that government should take advantage of taxation and promote tax system in Nigeria.

scholarly journals Impact of Capital Inflows on Economic Growth of Developing Countries

2015 ◽  
Vol 1 (7) ◽  
pp. 7-21
Author(s):  
Chigbu Ezeji E ◽  
Ubah Chijindu Promise ◽  
Chigbu Uzoamaka S
Keyword(s):  
Economic Growth ◽  
Developing Countries ◽  
Developing Economies ◽  
Positive Impact ◽  
Unit Root Test ◽  
Least Square Method ◽  
Least Square ◽  
Capital Inflows ◽  
Long Run ◽  
The Impact

This study examines the impact of capital inflows on economic growth of developing economies; the case of Nigeria, Ghana and India from 1986-2012. This is necessitated by the doubts being raised as whether the huge inflows of foreign capital in developing economies over the years have transmitted to real economic growth. Augmented Dickey Fuller unit root test was employed to evaluate the stationarity of the data, while Johansen Co-integration was used to estimate the long-run equilibrium relationship among the variables. The casual relationship was tested using Granger Causality, and Ordinary Least Square method was used to estimate the model. The findings reveals that capital inflows have significant impact on the economic growth of the three countries. In Nigeria and Ghana, foreign direct and portfolio investment as well as foreign borrowings have significant and positive impact on economic growth. Workers’ remittances significantly and positively related to the economic growth of the three countries. The enabling environment should be created in the developing countries to encourage more inflow of foreign investments and workers remittances. This will help in closing the savings-investment gap and encourage economic growth in these countries. The study signifies that capital inflows is indispensable in closing the savings-investment gap required for economic growth of developing countries.

scholarly journals IMPACT OF EXPORTS AND IMPORTS ON THE ECONOMIC GROWTH IN BURUNDI

2020 ◽  
pp. 17-25
Author(s):  
Wu Jiying ◽  
Niyonsaba Eric ◽  
Blessed Kwasi Adjei
Keyword(s):  
Economic Growth ◽  
Granger Causality ◽  
Annual Data ◽  
Long Run ◽  
Integration Test ◽  
Augmented Dickey Fuller ◽  
Short Run ◽  
Stationarity Test ◽  
Integrating Vector ◽  
The Impact

This paper investigated the impact of exports and imports on the economic growth in Burundi. To achieve this purpose, annual data for the periods between 1989 and 2018 were tested. The study used Granger Causality and Johansen Co-integration approach for long-run relationship Using Augmented Dickey-Fuller (ADF) and Phillip-Perron (PP) stationarity test, the variable proved to be integrated of the order I(1) at first difference. Johansen and Juselius Co-integration test was used to determine the presence or otherwise of a co-integrating vector in the variables. To find out the direction of causality among the variables, at least in the short-run, the Pairwise Granger Causality was carried out. Exports were found to Granger Cause imports. The results show that there is unidirectional causality between exports and imports. These results provide evidence that growth in Burundi was propelled by a growth-led import strategy as well as export-led import. Imports are thus seen as the source of economic growth in Burundi. KEYWORDS: Co-integration, Granger causality; Exports; Imports; Economic growth, Burundi.

scholarly journals Does Monetary Policy Affect Economic Growth in Jordan? Evidence from Ordinary Least Square Models

2018 ◽  
Vol 12 (1) ◽  
pp. 27
Author(s):  
Mohamed Ibrahim Mugableh
Keyword(s):  
Economic Growth ◽  
Monetary Policy ◽  
Positive Impact ◽  
Least Square ◽  
Vector Error Correction ◽  
Ordinary Least Square ◽  
Distributed Lag ◽  
Autoregressive Distributed Lag ◽  
Long Run ◽  
Short Run

The main objective of this paper is to analyze equilibrium and dynamic causality relationships between monetary policy tools and economic growth in Jordan for the period (1990-2017). For this purpose, it considers the autoregressive distributed lag (ARDL) and vector error correction (VEC) models estimations. The results of ARDL approach show that monetary policy variables (i.e., real interest rate and money supply) have positive impact on economic growth in long-run and short-run except inflation rate. In addition, the results of VECM indicate bidirectional causal relationships between economic growth and monetary policy variables in long-run and short-run.

scholarly journals Financial Development, Financial Openness and Economic Growth in Nigeria

2021 ◽  
Vol 11 (3) ◽  
Author(s):  
Christian E. Bassey ◽  
Okoiarikpo Benjamin Okoi ◽  
Ikpe Kingsley Imoh
Keyword(s):  
Economic Growth ◽  
Financial Development ◽  
Financial Distress ◽  
Positive Impact ◽  
Financial Openness ◽  
Insurance Sector ◽  
Distributed Lag ◽  
Long Run ◽  
Short Run ◽  
The Impact

This study examined the impact of financial development and financial openness on economic growth in Nigeria between 1981 and 2019. This was done through the use of the Auto-Regressive Distributed Lag (ARDL) model. In doing this, the ratio of credit to the private sector to the GDP and broad money to narrow money were used as measures of financial development and financial openness respectively. The study found that financial development has a positive and insignificant impact on economic growth in Nigeria in the long and short-run. The study also found that financial openness has a negative and insignificant impact on economic growth in Nigeria in the long-run. The results of the study further revealed that simultaneous existence of financial development and financial openness has an insignificant but positive impact on economic growth in Nigeria in the long-run. Based on the findings, the study recommended that the CBN should increase its efforts towards the regulation and supervision of the financial sector to reduce the incidence of financial distress. The study also recommended that efforts to develop the mortgage and insurance sector and the capital market should be intensified through regulatory improvements, improvements in the instruments in use in the market as well as public enlightenment programs to increase awareness of the potentials of the mortgage, insurance and capital markets. The final recommendation made by the study is that more restrictions should be placed on the inflow of capital in and out of the country to guard against sudden capital flow reversals.

Financial development and economic growth: empirical evidence from India

2015 ◽  
Vol 32 (3) ◽  
pp. 340-356 ◽  
Author(s):  
Madhu Sehrawat ◽  
A K Giri
Keyword(s):  
Economic Growth ◽  
Financial Development ◽  
Positive Impact ◽  
Annual Data ◽  
Content Type ◽  
Distributed Lag ◽  
Long Run ◽  
Integration Test ◽  
Short Run ◽  
Sustainable Economic Growth

Purpose – The purpose of this paper is to examine the relationship between financial development and economic growth in India using annual data from 1982 to 2012. Design/methodology/approach – The stationarity properties are checked by ADF, DF-GLS, KPSS and Ng–Perron unit root tests. The long- and short-run dynamics are examined by using the autoregressive distributed lag (ARDL) approach to co-integration. Findings – The co-integration test confirms a long-run relationship in financial development and economic growth for India. The analysis of ARDL test results reveals that both bank-based and market-based indicators of financial development have a positive impact on economic growth in India. Hence, the results support the supply-leading hypothesis and highlight the importance of financial development in economic growth. The findings also indicate that the Indian bank-centric financial sector has the potential for economic growth through credit transmission. Research limitations/implications – The present study recommends appropriate reforms in financial markets to attain sustainable economic growth. The findings are useful for policy-makers who want to maintain a parallel expansion of financial development and growth. Originality/value – To date, there are hardly any studies that use both market-based and bank-based indicators as proxies of financial development and analyze their role in economic growth in India. So, the contribution of the paper is to fill this gap in literature.

scholarly journals Response of Nigerian Construction Industry to Economic Growth

2020 ◽  
pp. 506-512
Author(s):  
Ojo O. J. ◽  
Yusuf B. A. ◽  
Anjonrin-Ohu A.
Keyword(s):  
Economic Growth ◽  
Construction Industry ◽  
Correlation Coefficient ◽  
Secondary Data ◽  
Least Square ◽  
National Account ◽  
Time Series Regression ◽  
Distributed Lag ◽  
Long Run ◽  
The Impact

The study assessed response of Nigerian Construction Industry to economic growth of Nigeria. The research was conducted using secondary data. The secondary data used was the National Account Dataset from 1981 to 2018 as 2010 constant price year. This was gotten from the Central Bank of Nigeria (CBN) publication reports. The response was evaluated through Impact propensity (IP), Finite Distributed Lag (FDL) and the Long Run Propensity (LRP). These parameters were calculated from the time series regression analysis using ordinary Least Square Method of estimation. The results show that the impact propensity of economic growth on construction is weak with correlation coefficient of -0.012. Delayed impact of economic growth on construction was observed with finite distributed lag of two year cycle. Maximum correlation coefficient of 1.265 with the economics of the preceding year (t-1) was observed. Long run propensity of 1.333 establishes a high growth propensity for construction industry given a one percent permanent GDP growth. Therefore, the study concluded that a consistent economic growth is desirable so as to achieve improved construction industry contribution to GDP.

scholarly journals PENGARUH E-COMMERCE TERHADAP PERTUMBUHAN EKONOMI INDONESIA

Bina Ekonomi ◽  
2019 ◽  
Vol 22 (1) ◽  
pp. 43-62
Author(s):  
Rr. Getha Fety Dianari
Keyword(s):  
Economic Growth ◽  
Positive Impact ◽  
Rapid Development ◽  
Distributed Lag ◽  
Internet Users ◽  
Long Run ◽  
Short Run ◽  
Information And Communication ◽  
Transaction Value ◽  
The Impact

The rapid development of information and communication technology has caused the emergence of a new economy, indicated by the phenomenon of internet-based businesses or e-commerce. This research uses the Auto-Regressive Distributed Lag (ARDL) approach to analyzes the impact of e-commerce on Indonesia’s economic growth in 1996-2015. The results show that the development of e-commerce as represented by the increase of the number of e-commerce transaction value, the increase of the number of business websites, and the number of internet users is proven to bring positive impact on Indonesia’s economic growth. This validates the hypothesis which states the increasing number of e-commerce transaction value, which is formed by the interaction between business websites as the supply indicator and the internet users as the demand indicator, shall bring enhancement to the intensity of macroeconomic activities. However, the effect is only significant for the long-run relationship but is not significant in the short-run relationship. Keywords: e-commerce; economic growth; ARDL

Finance-institution-growth trilogy: time-series insights from South Africa

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Clement Olalekan Olaniyi ◽  
Adebayo Adedokun
Keyword(s):  
Economic Growth ◽  
South Africa ◽  
Positive Impact ◽  
Institutional Quality ◽  
Empirical Examination ◽  
Content Type ◽  
Distributed Lag ◽  
Long Run ◽  
Short Run ◽  
The Impact

PurposeThis study examines the moderating effect of institutional quality on the finance-growth nexus in South Africa from 1986 to 2015.Design/methodology/approachThis study adopts unit root tests, cointegration test and autoregressive distributed lag (ARDL) model.FindingsThe findings reveal that institutional quality constitutes a drain to the growth benefits of financial development (FD) in South Africa in the short-run while FD and institutional quality converge to enhance growth process of the country in the long-run. Also, the threshold of institutional quality beyond which institution stimulates strong positive impact of finance on growth is estimated to be 6.42 on a 10-point scale.Practical implicationsThis study, therefore, suggests that institutional quality matters in the way FD influences economic growth in South Africa. Hence, stakeholders are encouraged to trace and block lapses and loopholes in the institutional framework guiding financial system in South Africa so as to maximize growth benefits of FD.Originality/valueThis study contributes to the extant studies by introducing a country-specific analysis into the empirical examination of how institutional quality influences the impact of FD on economic growth. Also, this study deviates from other studies by determining the threshold of institutional quality beyond which FD stimulates strong positive effect on economic growth in South Africa

scholarly journals The impact of military spendings on economic growth of Pakistan

2017 ◽  
Vol 1 (1) ◽  
pp. 53-64
Author(s):  
Sajjad ◽  
Tariq ◽  
Muhammad Tariq
Keyword(s):  
Economic Growth ◽  
Positive Impact ◽  
Bounds Testing ◽  
Distributed Lag ◽  
Long Run ◽  
Defence Spending ◽  
Augmented Dickey Fuller ◽  
Negative Effect ◽  
Short Run ◽  
The Impact

A sound national defence is extremely essential for a country’s sovereignty. The geostrategic position of Pakistan and its deterrence policy against neighbouring India have generally been the reasons for stringent military financing. Defence spending affects all sectors of the economy directly or indirectly. This study aims to investigate the influence of government military expenditures on the economic growth of Pakistan over the period 1987-2016. Augmented Dickey-Fuller test has been used for checking the unit root in the data. Autoregressive Distributed Lag (ARDL) bounds testing approach to cointegration has been applied to analyze the relationship between military spending and economic growth. The findings indicate that military expenditure has a positive impact on Pakistan's economic growth in the long-run, however it has negative effect on economic growth in the short-run.

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