scholarly journals Foreign Aid, Domestic Savings, And Economic Growth In South Asia

2013 ◽  
Vol 12 (11) ◽  
pp. 1389 ◽  
Author(s):  
Hem C. Basnet
Keyword(s):  
Economic Growth ◽  
Foreign Aid ◽  
South Asian ◽  
Equation System ◽  
Simultaneous Equation ◽  
Asian Countries ◽  
Simultaneous Equation System ◽  
Domestic Savings ◽  
Considerable Controversy

The role of foreign aid in promoting growth by complimenting domestic savings has been an issue of considerable controversy. This study examines the role of foreign aid on domestic savings and economic growth in South Asian countries - Bangladesh, India, Nepal, Pakistan, and Sri-Lanka - by using simultaneous equation system in which growth and savings are jointly determined. The results indicate that aid has a positive and significant effect on the growth rates of the five nations studied during 1960 to 2008. However, foreign aid appears to crowd out domestic savings rather than complementing it.

scholarly journals Where does Pro-Poor Growth Occur in Vietnam?

2015 ◽  
Vol 22 (1) ◽  
pp. 20-41
Author(s):  
Bao Nguyen Hoang
Keyword(s):  
Economic Growth ◽  
Gini Coefficient ◽  
Poverty Alleviation ◽  
Poverty Reduction ◽  
Equation System ◽  
Simultaneous Equation ◽  
Poverty Index ◽  
Poor Growth ◽  
Simultaneous Equation System ◽  
The Impact

Although Vietnam’s economic growth and poverty reduction for almost three decades have been remarkable, growth for poverty reduction is unequally distributed across the nation. The paper examines the cause of poverty and the impact of provincial economic growth on poverty alleviation, using the data of 63 provinces in Vietnam. The elasticity of poverty with respect to provincial economic growth is employed (the elasticities of headcount index, poverty gap index, and squared poverty index with respect to provincial economic growth) to identify the provinces where pro-poor growth has occurred. The elasticity of poverty with respect to provincial Gini coefficient is examined to identify the impact of expenditure inequality on poverty. The simultaneous equation system is estimated to analyze not only direct and indirect effects of the related variables, but also the causality effect between economic growth and the poverty elasticity with respect to both growth and the Gini coefficient.

scholarly journals Export Earnings, Capital Instability and Economic Growth in South Asia

2003 ◽  
Vol 8 (1) ◽  
pp. 65-89
Author(s):  
Muhammad Aslam Chaudhary ◽  
Amjad Naveed
Keyword(s):  
Economic Growth ◽  
South Asian ◽  
Foreign Capital ◽  
Developed Countries ◽  
Export Diversification ◽  
Asian Countries ◽  
The Impact ◽  
The Relationship

During the last two decades the role of international trade and flow of foreign capital have received considerable attention in the literature. Various studies have examined the impact of export instability and capital instability on economic growth in less developed countries.1 Empirical evidence supports the hypothesis of a deleterious impact of export instability on economic growth. However, some studies also indicated that the relationship was unstable but positive with economic growth.2 Yet there are no systematic empirical investigations into the implied links between export diversification and long-term economic growth, particularly in the case of South Asian countries. The major concern regarding export instability is that it retards economic growth.

scholarly journals Foreign Aid, Domestic Savings and Economic Growth in Selected MENA Countries

2016 ◽  
Vol 6 (1) ◽  
pp. 352 ◽  
Author(s):  
Mahmoud Mohammed Sabra ◽  
AbdelHakeem Eltalla
Keyword(s):  
Economic Growth ◽  
Foreign Aid ◽  
System Analysis ◽  
Negative Impact ◽  
Trade Openness ◽  
Negative Relationship ◽  
Dynamic Panel Data ◽  
Mena Countries ◽  
Domestic Savings

<p class="ber"><span lang="EN-GB">Foreign aid can have either a positive or a negative impact on economic growth. The role of foreign aid in supporting growth by completing domestic savings has been a subject of substantial argument. In this study, we explore the role of foreign aid, trade openness, investment, domestic savings and economic growth in eight MENA countries (Morocco, Algeria, Egypt, Palestine, Syria, Jordan, Lebanon and Tunisia) for the period from 1977 to 2013. The estimation has been done using simultaneous equation model and dynamic panel data system analysis. A negative relationship is found between economic growth and foreign aid. The negative impact of foreign aid on economic growth could be due to presence of Dutch disease and bad policy environment. In addition, foreign aid seems to crowd out domestic savings rather than complementing it. The effects of trade openness and domestic investment on economic growth are significantly positive.</span></p>

scholarly journals Technology and Economic Growth: Role of Financial Development in South Asian Countries

2019 ◽  
Vol 5 (2) ◽  
pp. 323-332 ◽  
Author(s):  
Imran Sharif Chaudhry ◽  
Samina Sabir ◽  
Fatima Gulzar
Keyword(s):  
Economic Growth ◽  
Financial Development ◽  
South Asian ◽  
Method Of Moment ◽  
Asian Countries ◽  
Development Technology ◽  
Generalized Method Of Moment ◽  
Sustainable Economic Growth ◽  
The Impact

Financial development plays an instrumental role in the process of economic growth and development through mobilization of savings and creating investment opportunities. Financial development also leads to enhance the level of technology by providing finance to entrepreneurs for technological innovations which leads to economic growth. This study examines the impact of financial development and technology on economic growth of selected South Asian countries over the time span 1984-2017. Due to endogeneity problem, the empirical model used in the study is estimated by System Generalized Method of Moment (System GMM). Empirical results indicated that financial development, technology and human capital have positive and significant impact on economic growth in developing South Asian countries. To attain a sustainable economic growth, South Asian countries should put their efforts to develop their financial market that stimulates economic growth by providing finance to entrepreneurs for innovations.

Financial Sector Reforms in South Asian Countries

2016 ◽  
pp. 36-50
Author(s):  
Amir Manzoor
Keyword(s):  
Economic Growth ◽  
South Asia ◽  
South Asian ◽  
Economic Integration ◽  
Growth Rates ◽  
Financial Sector ◽  
Asian Countries ◽  
Settlement Systems ◽  
Domestic Savings ◽  
Economic Growth Rates

Several far-reaching reforms to the financial sector were introduced by South Asian countries in early 1980. The nature and progress of these reforms vary from country to country. These reforms covered a number of areas such as promoting competition in the financial sector, developing payment and settlement systems, and strengthening regulations. So far, these reforms have not only helped South Asian countries to significantly raise domestic savings, attract foreign capital, and raise economic growth rates but also provided greater economic integration of South Asia. This chapter performs a close re-scrutiny of the reforms implemented in South Asian countries. Suggestion for further reforms for building efficient, competitive, and resilient financial sector is also provided.

Does logistics influence economic growth? The European experience

2017 ◽  
Vol 55 (8) ◽  
pp. 1613-1628 ◽  
Author(s):  
Vittorio D’Aleo ◽  
Bruno S. Sergi
Keyword(s):  
Economic Growth ◽  
Equation System ◽  
Simultaneous Equation ◽  
Positive Influence ◽  
Strategic Decisions ◽  
Content Type ◽  
Global Competitiveness ◽  
Simultaneous Equation System ◽  
Global Competitiveness Index ◽  
Competitiveness Index

Purpose The purpose of this paper is to set forth a new economic model that includes variables that take account the mediator effect of global competitiveness index to better identify the whole phenomenon behind the relationship between GDP and competition in Europe. Design/methodology/approach The authors test the consistency of the Baron and Kenny mediator model through an explanatory linear regression model, then the authors deploy a panel analysis and a simultaneous equation system to assess the model consistency to bypass much of the endogeneity problem. Findings This paper’s findings show a positive influence of global competitiveness index on GDP and this effect is by far more evident when other variables (e.g. the logistics performance index) interact simultaneously. Research limitations/implications The GCI is a correct variable to assess growth. The study shows how the recent economic crisis has increased the importance of competitiveness for economic recovery as well as key strategic decisions aimed at strengthening growth and competitiveness. Originality/value This paper’s theoretical construct is a unique methodology applied to disentangle the role of a new model that takes account of global competitiveness index as a mediator variable to economic growth.

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