scholarly journals Empirical Evaluation On External Debt Of Malaysia

2011 ◽  
Vol 7 (2) ◽  
Author(s):  
Nor’Aznin Abu Bakar ◽  
Sallahuddin Hassan
Keyword(s):  
Economic Growth ◽  
Capital Accumulation ◽  
Empirical Evaluation ◽  
External Debt ◽  
Aggregate Level ◽  
Percentage Point Increase ◽  
Positive Effects ◽  
Point Increase ◽  
Short Run

This study analyzes the effects of external debts on economic growth in Malaysia. The analysis is conducted both at aggregate and disaggregate levels. The empirical results are based on VAR estimates using GDP, external debts, capital accumulation, labor force and human capital. Estimation results at the aggregate level indicate that total external debts affect economic growth positively. In particular, one percentage point increase in total external debts generates 1.29 percentage point of economic growth in the long term. Meanwhile, the positive effects of project loan has been detected at the disaggregate level. However, market loan has not shown any significant effect on economic growth. In the short-run, total external debts as well as project loan has positive effects on economic growth.

scholarly journals Evidence on the Nexus Between Electricity Consumption and Economic Growth through Empirical Investigation of Uganda

2015 ◽  
Vol 8 (1) ◽  
pp. 149-165
Author(s):  
Lira Sekantsiand ◽  
Mamofokeng Motlokoa
Keyword(s):  
Economic Growth ◽  
Granger Causality ◽  
Capital Stock ◽  
Capital Accumulation ◽  
Electricity Consumption ◽  
The Body ◽  
Electricity Sector ◽  
Short Term ◽  
Short Run

AbstractThis paper empirically examines the electricity consumption - economic growth nexus in Uganda for the period 1982 to 2013, with a view to contributing to the body of literature on this topic and informing energy policy design in Uganda. Using capital stock as an intermittent variable in the causality framework, the paper employs Johansen-Juselius (1988, 1995) multivariate cointegration and VECM based Granger causality tests and finds a bidirectional causality between electricity consumption and economic growth in the long-term and distinct causal flow from economic growth to electricity consumption in the short-run, and short-term and long-term Granger causality from capital stock to economic growth, with short-run feedback in the opposite direction. Therefore, it implies that firstly, the Government of Uganda (GoU) can implement conservation policies only through reducing energy intensity and promoting efficient energy use to avoid decline in output and secondly, that the GoU should intensify its efforts towards capital accumulation in order to realize sustainable economic growth. Lastly, the empirical evidence that electricity consumption influences some short-term capital accumulation supports the GoU’s efforts to allow private sector investment in the electricity sector in an effort to increase electricity supply.

scholarly journals Multi-Factor Crime in Malaysia, 1980 – 2013: Bounds Testing of Level Relationships and Granger Non-Causality Analysis

2018 ◽  
Vol 3 (2) ◽  
pp. 55
Author(s):  
Dullah Mulok ◽  
Mori Kogid ◽  
Rozilee Asid ◽  
Jaratin Lily
Keyword(s):  
Economic Growth ◽  
Causality Analysis ◽  
Bounds Testing ◽  
Negative Effects ◽  
Macroeconomic Factors ◽  
Factors Affecting ◽  
Positive Effects ◽  
Long Run ◽  
Short Run

This study examines the relationship between criminal activities and the multi-macroeconomic factors of economic growth, unemployment, poverty, population and inflation in Malaysia from 1980 to 2013. The ARDL bounds testing of the level relationship was used to establish the long-run relation, and the Toda-Yamamoto Augmented VAR approach was used to test the short-run impact based on partial Granger non-causality analysis. Empirical results suggest that economic growth, inflation, poverty and population are significant factors affecting criminal activities in Malaysia with economic growth and poverty recording positive effects, whereas negative effects were recorded for inflation and population in the long-term. Further investigation using Granger non-causality analysis revealed that only population does Granger caused the criminal activities in the short-run. The findings provide useful information for policymakers to strengthen the existing crime-related policies in order to improve safety and security while maintaining economic sustainability in Malaysia.

Take it to the (public) bank: The efficiency of public bank loans to private firms

2020 ◽  
Vol 0 (0) ◽  
Author(s):  
Anders Kärnä
Keyword(s):  
Economic Growth ◽  
Capital Markets ◽  
Firm Growth ◽  
Bank Loans ◽  
Government Interventions ◽  
The Public ◽  
Positive Effects ◽  
Economic Output ◽  
Unique Dataset

AbstractIncomplete capital markets and credit constraints for small and medium-sized enterprises (SMEs) are often considered obstacles to economic growth, thus motivating government interventions in capital markets. While such policies are common, it is less clear to what extent these interventions result in firm growth or to which firms interventions should be targeted. Using a unique dataset with information about state bank loans targeting credit-constrained SMEs in Sweden with and without complementary private bank loans, this paper contributes to the literature by studying how these loans affect the targeted firms for several outcome variables. The results suggest that the loans create a one-off increase in investments, with long-term, positive effects for sales and labor productivity but only for firms with 10 or fewer employees. Increased access to capital by firms can therefore produce increases in economic output but only in a specific type of firm. This insight is of key importance in designing policy if the aim is to increase economic growth.

Does Public Debt Service Expenditure Crowd-Out Economic Growth? Empirical Evidence from an African Developing Country

2019 ◽  
Vol 64 (3) ◽  
pp. 23-38
Author(s):  
Talknice Saungweme ◽  
Nicholas M. Odhiambo
Keyword(s):  
Economic Growth ◽  
Public Debt ◽  
Time Series Data ◽  
Policy Formulation ◽  
Debt Service ◽  
Series Data ◽  
Long Run ◽  
Short Run ◽  
The Impact

Abstract This paper contributes to the ongoing debate on the impact of public debt service on economic growth; and it provides an evidence-based approach to public policy formulation in Zimbabwe. The empirical analysis was performed by applying the autoregressive distributed lag (ARDL) technique to annual time-series data from 1970 to 2017. The study findings reveal that the impact of public debt service on economic growth in Zimbabwe is negative in the short run but positive in the long run. The results are suggestive of the existence of a crowding-out effect of public debt service in Zimbabwe in the short run and a crowding-in effect in the long run. In view of these findings, the government should consider fiscal and financial policies that promote a constant supply of long-term finance, long-term fixed investments, and extension of a government securities maturity structure so as to ensure sustainable short- and long-term public debt service expenditures. The study further recommends the strengthening of non-distortionary revenue mobilisation reforms to reduce market distortions and boost domestic investment.

An Honors Teacher Like Me: Effects of Access to Same-Race Teachers on Black Students’ Advanced-Track Enrollment and Performance

2020 ◽  
Vol 42 (2) ◽  
pp. 163-187
Author(s):  
Cassandra M. D. Hart
Keyword(s):  
High School Students ◽  
Black Students ◽  
Fixed Effects ◽  
Role Model ◽  
Black Teachers ◽  
School Students ◽  
Percentage Point Increase ◽  
Positive Effects ◽  
Point Increase ◽  
And Performance

Using rich administrative data from North Carolina and school-course fixed effects models, this study explores whether the availability of same-race instructors in advanced-track sections of courses affects Black high school students’ enrollment in, and performance in, advanced-track courses. The availability of at least one Black instructor at the advanced level is associated with a 2 percentage point increase in the uptake of advanced courses for Black students. However, conditional on enrollment in the advanced track, Black students are no more likely to pass advanced-track courses when taught by Black teachers. Positive effects on enrollment are driven by enrollment shifts for higher achieving students. Additional analyses showing benefits to non-Black students suggest that the main channels are not race-specific role model effects.

scholarly journals The Asymmetric Influence of Financial Development on Economic Growth in Kenya: Evidence From NARDL

SAGE Open ◽  
2020 ◽  
Vol 10 (1) ◽  
pp. 215824401989407 ◽  
Author(s):  
Hao Chen ◽  
Duncan O. Hongo ◽  
Max William Ssali ◽  
Maurice Simiyu Nyaranga ◽  
Consolata Wairimu Nderitu
Keyword(s):  
Economic Growth ◽  
Financial Development ◽  
Government Spending ◽  
Capital Accumulation ◽  
Research Question ◽  
Government Expenditure ◽  
Model Specification ◽  
Long Run ◽  
Short Run ◽  
Auto Regressive

This study analyzed the asymmetric effects of financial development on economic growth using a model augmented with inflation and government expenditure asymmetries to inform model specification. The research question used entails, Do their asymmetry changes significantly influence growth? Using the nonlinear auto-regressive distributive lag (NARDL), the most significant results posit that positive shocks in financial development in the short run and its negative shocks in the long run increase and decrease economic growth, respectively. Regarding inflation, its positive (negative) shocks in both runs, respectively, reduce (increase) economic growth. In comparison, positive shocks in financial development that spur growth in the short run and negative shocks in financial development (government expenditure) that increase (reduce) growth are the most domineering effects as the rest of the shocks insignificantly affect growth. Results clearly demonstrate to an environment steered by stable and sustainable inflation that regulated government expenditure and comprehensive financial system deepening would positively cause economic growth. Therefore, appropriate policies that favor low inflation and reduced government spending, expansion of feasibly reformed financial institutions, capital accumulation, and increased resource mobilization should be instituted if real growth is to positively happen.

scholarly journals Population and Economic Growth Under Different Growth Engines

2017 ◽  
Vol 18 (2) ◽  
pp. 182-211 ◽  
Author(s):  
Alberto Bucci ◽  
Xavier Raurich
Keyword(s):  
Economic Growth ◽  
Growth Rate ◽  
Human Capital ◽  
Population Growth ◽  
Capital Accumulation ◽  
Capital Investment ◽  
Human Capital Investment ◽  
Physical Capital ◽  
Long Run

Abstract Using a growth model with physical capital accumulation, human capital investment and horizontal R&D activity, this paper proposes an alternative channel through which an increase in the population growth rate may yield a non-uniform (i.e., a positive, negative, or neutral) impact on the long-run growth rate of per-capita GDP, as available empirical evidence seems mostly to suggest. The proposed mechanism relies on the nature of the process of economic growth (whether it is fully or semi-endogenous), and the peculiar engine(s) driving economic growth (human capital investment, R&D activity, or both). The model also explains why in the long term the association between population growth and productivity growth may ultimately be negative when R&D is an engine of economic growth.

Implications of the Global Financial Crisis on Korea's Trade

2009 ◽  
Vol 8 (3) ◽  
pp. 46-81 ◽  
Author(s):  
Sangyeon Hwang ◽  
Hyejoon Im
Keyword(s):  
Trade Balance ◽  
Global Financial Crisis ◽  
Domestic Demand ◽  
Balance Sheets ◽  
Positive Effects ◽  
The World ◽  
World Demand ◽  
Short Run ◽  
The Global Financial Crisis

In this paper, we examine the channels through which the current global crisis affects Korea's trade and assess the implications thereof. These five important channels under investigation are: (1) world demand, (2) domestic demand, (3) exchange rate, (4) credit markets, and (5) protectionism. We conclude that the world demand channel is the most important factor for the recovery of Korea's exports. We expect that depreciation followed by the crisis should generate only small positive effects on a trade balance in the short run. However, depreciation can erode the long-term competitiveness of domestic firms because it can deteriorate not only firms' balance sheets but also banks' balance sheets.

scholarly journals Taxation, government spending and economic growth: The case of Bulgaria

2021 ◽  
Vol 7 (3) ◽  
pp. 255-266
Author(s):  
G. Ganchev ◽  
◽  
I. Todorov ◽  
Keyword(s):  
Economic Growth ◽  
Growth Rate ◽  
Tax Revenue ◽  
Gdp Growth ◽  
Real Gdp ◽  
Long Run ◽  
Gdp Growth Rate ◽  
Short Run ◽  
The Impact

The objective of this article is to estimate the impact of three fiscal instruments (direct taxes, indirect taxes, and government expenditure) on Bulgaria’s economic growth. The study employs an autoregressive distributed lag model (ARDL) and Eurostat quarterly seasonally adjusted data for the period 1999–2020. Four control variables (the shares of gross capital formation, household consumption, and exports in GDP as well as the economic growth in the euro area) are included in the model to account for the influence of non-fiscal factors on Bulgaria’s real GDP growth rate. The empirical results indicate a long-run equilibrium relationship between Bulgaria’s economic growth and the independent variables in the ARDL. In the short term, Bulgaria’s real GDP growth rate is affected by its own past values and the previous values of the shares of direct tax revenue, exports, government consumption, and indirect tax revenue in GDP. In the long term, Bulgaria’s economic growth is influenced by its own previous values and the past values of the share of household consumption in GDP and the euro area’s real GDP growth rate. Fiscal instruments can be used to stabilize Bulgaria’s growth in the short run but they are neutral in the long run. The direct tax revenue, government consumption, and indirect tax revenue are highly effective and can be used as tools for invigorating and stabilizing Bulgaria’s economic growth in the short run. However, in the long term, the real GDP growth rate can be hastened only by encouraging domestic demand (final consumption expenditure of households) and promoting exports. This research cannot answer the question of whether flat income taxation stabilizes the economy or not, since it does not separate the impact of tax rate changes from the influence of tax base modifications.

scholarly journals Direction of Causality between Financial Development and Economic Growth in Turkey

2021 ◽  
pp. 22-37
Author(s):  
Cengiz Yılmaz ◽  
Banu Demirhan
Keyword(s):  
Economic Growth ◽  
Time Series ◽  
Gross Domestic Product ◽  
Financial Development ◽  
The Other ◽  
Development Indicators ◽  
Short Run ◽  
Causality Relationship ◽  
Using Data

This paper has investigated the causality relationship between financial development and economic growth in Turkey, using data from 2005:04 to 2020:03. We construct a time-series model to explore causality relationships between the variables. In the study, two indicators were used as financial development indicators: banking loans to the private sector and money supply to GDP (Gross Domestic Product). The empirical results have represented a bi-directional relationship between financial development and economic growth in the short run. On the other hand, we have not found a causality relationship in the long term.

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