scholarly journals Education Expenditure and Economic Growth in Mauritius: An Application of the Bounds Testing Approach

2017 ◽  
Vol 13 (22) ◽  
pp. 70 ◽  
Author(s):  
Tafirenyika Sunde
Keyword(s):  
Economic Growth ◽  
The Other ◽  
Bounds Testing ◽  
Education Expenditure ◽  
Long Run ◽  
Short Run ◽  
Bounds Testing Approach ◽  
Testing Approach ◽  
The Relationship ◽  
Investments In Education

This study examines the relationship between education expenditure and economic growth in Mauritius. The study employed the ARDL bounds testing methodology for the period 1976 to 2016. The study found that education expenditure Granger causes economic growth in Mauritius in the short run. In addition, the study also found that economic growth does not Granger cause education expenditure in Mauritius in the short run. However, in the long-run, the study found that there are long run relationships between education expenditure and economic growth in both equations; and this means that an increase in either of the variables will eventually lead to an increase in the other variable. The study, therefore, found support for the hypothesis that investment in education raises economic growth. This means that Mauritius has the potential to benefit from further investments in education in the future.

scholarly journals Investigating the Influence of International Tourism in Pakistan and Its Linkage to Economic Growth: Evidence From ARDL Approach

SAGE Open ◽  
2020 ◽  
Vol 10 (2) ◽  
pp. 215824402093252
Author(s):  
Abdul Rehman ◽  
Hengyun Ma ◽  
Muhammad Irfan ◽  
Munir Ahmad ◽  
Ousmane Traore
Keyword(s):  
Economic Growth ◽  
Positive Impact ◽  
International Tourism ◽  
Passenger Transport ◽  
Bounds Testing ◽  
Long Run ◽  
Short Run ◽  
Bounds Testing Approach ◽  
Testing Approach ◽  
Ardl Bounds Testing Approach

Tourism is a key source of income and employment today, and different parts of the world are heavily dependent on it. The main purpose of this article was to demonstrate the consequences of long-run and short-run relationship on international tourism in Pakistan and its impact on economic growth by applying an autoregressive distributed lag (ARDL) bounds testing approach. Augmented Dickey–Fuller unit root test was employed to check the stationarity of the variables, while an ARDL bounds testing approach was used to measure the long-run and short-run dynamics linkage among the study variables. The results show that international tourism and expenditures for passenger transport items have a positive impact on economic growth. Similarly, long-run dynamics also revealed that international tourism expenditures for travel items and international tourism expenditures, international tourism receipts for passenger transport items and international tourism receipts for travel items also had a positive impact on the economic growth. The present analysis of the long-run suggested better policies should be implemented to attract more international tourists to the country.

scholarly journals Inflation Dynamics And Economic Growth In Tanzania: A Multivariate Time Series Model

2012 ◽  
Vol 28 (3) ◽  
pp. 317 ◽  
Author(s):  
Nicholas M. Odhiambo
Keyword(s):  
Economic Growth ◽  
Multivariate Time Series ◽  
Bounds Testing ◽  
Critical Question ◽  
Long Run ◽  
Ardl Bounds Testing ◽  
Short Run ◽  
Bounds Testing Approach ◽  
Testing Approach ◽  
Ardl Bounds Testing Approach

This study examines the short-run and long-run causal relationship between inflation, investment and economic growth in Tanzania. In the main, the study incorporates investment in a bivariate setting between inflation and economic growth hence, creating a trivariate model. The study attempts to answer one critical question: Does inflation have any significant influence on economic growth and investment in Tanzania? Using the ARDL-bounds testing approach, the study finds a unidirectional causal flow from inflation to economic growth without any feedback response. The study also finds that investment in Tanzania unambiguously causes economic growth. The results apply irrespective of whether the causality is estimated in the long run or in the short run.

scholarly journals An ARDL Approach to Check the Linkage Between Economic Growth, Electricity Access, Energy Use and Population Growth in Pakistan: Long-run and Short-run Analysis

2018 ◽  
Author(s):  
Abdul Rehman ◽  
Zhang Deyuan
Keyword(s):  
Economic Growth ◽  
Population Growth ◽  
Urban Population ◽  
Energy Use ◽  
Bounds Testing ◽  
Long Run ◽  
Bounds Testing Approach ◽  
Testing Approach ◽  
Electricity Access ◽  
Ardl Bounds Testing Approach

The major aim of this study was to investigate and explores the linkage between economic growth, electricity access, energy use and population growth in Pakistan. To check the variables stationarity, Augmented Dickey-Fuller (ADF) and Phillips-Perron unit root test was applied and an Autoregressive Distributed Lag (ARDL) bounds testing approach to co-integration was applied to investigate the dynamic causality link among the study variables. These tests shed light on the long-run connection among the variables; further, the results revealed that electricity access to population, electricity access to urban population, energy usage, population growth, and urban population growth had a significant impact on economic growth, while the electricity access to rural population and rural population growth has a negative impact on the economic growth in Pakistan. According to these findings, study commends that government of Pakistan pay further attention to increase its electricity production from different sources including, hydroelectric, solar, oil and gas and nuclear in order to fulfill the country’s demands. By using ARDL bounds testing approach, this study filled the literature gap regarding economic growth, electricity access, energy use and population growth in Pakistan.

scholarly journals Crop Production, Livestock Production and Economic Growth in Botswana (1990-2017): An Application of ARDL Model

2021 ◽  
Vol 9 (8) ◽  
pp. 1500-1508
Author(s):  
Mufaro Andrew Matandare ◽  
Patricia Masego Makepe ◽  
Lekgatlhamang Setlhare ◽  
Jonah Bajaki Tlhalefang
Keyword(s):  
Economic Growth ◽  
Crop Production ◽  
Agricultural Sector ◽  
Livestock Production ◽  
Long Term Effects ◽  
Bounds Testing ◽  
Long Run ◽  
Short Run ◽  
Testing Approach

There are few studies in Botswana which have examined the relationship between agriculture and economic growth. The uniqueness of this study is grounded in investigating disintegrated agriculture components into crop production and livestock production and investigating their nexus with economic growth. This study estimated the short and long term effects between crop production, livestock production and economic growth in Botswana for the period 1990 to 2017. The Auto-Regressive Distributed Lagged (ARDL) bounds testing approach was employed to investigate the stated relationship. Study findings from the ARDL bound testing approach confirm evidence of a long-run equilibrium relationship between crop production, livestock production and economic growth. Results indicated that livestock production has a positive and significant impact on economic growth both in the short run and long run. On the other hand crop production has a positive and significant impact on economic growth only in the long run. Efforts towards supporting agricultural sector growth should be emphasized to promote agricultural sector productivity in a bid to forge a move away from dependence on imports of food in Botswana. To enhance economic growth, in both the short run and long run, the government of Botswana and all relevant stakeholders should invest in and promote livestock production. In the long term, policies that foster crop production are essential for economic growth.

Electricity Consumption–Economic Growth Nexus: Evidence from ARDL Bound Testing Approach in the Tunisian Context

2020 ◽  
pp. 097215092092543 ◽  
Author(s):  
Zouheir Mighri ◽  
Hanen Ragoubi
Keyword(s):  
Economic Growth ◽  
Electricity Consumption ◽  
Bounds Testing ◽  
Distributed Lag ◽  
Autoregressive Distributed Lag ◽  
Long Run ◽  
Causality Tests ◽  
Short Run ◽  
Testing Approach ◽  
Causal Nexus

This article investigates the causal nexus between electricity consumption and economic growth in Tunisia for the period 1971–2013 by using autoregressive distributed lag (ARDL) bounds testing approach of cointegration and Granger causality tests. The empirical findings indicate the existence of a long-term relationship between electricity consumption and economic growth. Besides, they support the conservation hypothesis in the long run, while they confirm the growth hypothesis in the short run.

scholarly journals Exploring the Linkage Between Financial Development and Economic Growth: the ARDL Bounds Testing approach

2021 ◽  
Author(s):  
Mohammad Abul Kashem ◽  
Mohammad Mafizur Rahman
Keyword(s):  
Economic Growth ◽  
Financial Development ◽  
Negative Impact ◽  
Positive Impact ◽  
Bounds Testing ◽  
Development Indicators ◽  
Long Run ◽  
Short Run ◽  
Bounds Testing Approach ◽  
Ardl Bounds Testing Approach

Abstract This study investigates the cointegration, short and long run dynamics and causal links between financial development and economic growth in Bangladesh for the period 1973 to 2015. We applied the Autoregressive Distributed Lag (ARDL) Bounds Testing approach and the Granger causality test. The ARDL bounds tests and other cross-checking test confirmed the long run cointegration between economic growth and financial development indicators in Bangladesh. The two financial development indicators, growth in broad money to gross domestic product (GDP) ratio and growth in total deposit liabilities to GDP ratio appeared to have time variant impact on economic growth: the former having significant positive impact in the short- run but negative impact in the long- run, while the latter has significant negative impact in the short- run but positive impact in the long- run. The Granger causality analysis indicated a bidirectional, co-evolutionary process between financial development and economic growth.

Investigating the Long-run and the Short-run Relationship Between Domestic Macroeconomic Forces and Indian Equity Market: Evidence Based on ARDL Bounds Testing Approach

Paradigm ◽  
2021 ◽  
pp. 097189072110037
Author(s):  
Animesh Bhattacharjee ◽  
Joy Das
Keyword(s):  
Exchange Rate ◽  
Foreign Exchange ◽  
Equity Market ◽  
Foreign Exchange Rate ◽  
Bounds Testing ◽  
Long Run ◽  
Short Run ◽  
Bounds Testing Approach ◽  
Testing Approach ◽  
Ardl Bounds Testing Approach

Understanding the effect of domestic macroeconomic forces on equity market is essential since macroeconomic forces have a systematic effect on the equity market returns. The present study uses monthly observations from India for the period from January 2012 to December 2019 to investigate the long-run and short-run relationship between the domestic macroeconomic forces and equity market. The study employed the autoregressive distributed lag (ARDL) bounds testing approach and pair-wise granger causality test to attain the objective. The long-run empirical results indicated that the Indian equity market and the domestic macroeconomic forces are cointegrated. The long-run coefficients of foreign exchange rate and money supply are found to be significant. The short-run coefficients suggest that money supply, inflation and foreign exchange rate significantly influence the Indian equity market. The study also observed the presence of feedback mechanism between foreign exchange rate and Indian equity market. The study provides the policy and managerial implications.

scholarly journals International Tourism and Economic Growth in Zimbabwe: An ARDL - Bounds Testing Approach

2021 ◽  
pp. 61-81
Author(s):  
Thabani Nyoni ◽  
Naftaly Mose ◽  
John Thomi
Keyword(s):  
Economic Growth ◽  
International Tourism ◽  
Bounds Testing ◽  
Long Run ◽  
Ardl Bounds Testing ◽  
Bounds Testing Approach ◽  
Testing Approach ◽  
The Government ◽  
Ardl Bounds Testing Approach ◽  
Growth Hypothesis

This study investigated the effect of international tourism development on economic growth in Zimbabwe, using time series data spanning over the period 1980 to 2017. The main aim of the study was to examine whether international tourism is a pathway to economic recovery in Zimbabwe. The study adopted the tourism growth model proposed by Balaguer and Cantavella-Jorda [1] and applied the Autoregressive Distributed Lag (ARDL) bounds testing approach and its associated Error Correction Model (ECM). The direction of causality between international tourism and economic growth was examined using the Granger causality test in an error correction framework. The findings of the study show that the Tourism-led Growth Hypothesis (TLGH) is valid both in the short-run and long-run while the Economic-Driven Tourism Growth Hypothesis (EDTGH) is valid in the long-run only. This implies that the resource allocation strategy for the Government of Zimbabwe should prioritize both international tourism and economic expansion. The study, therefore, recommends that the Government of Zimbabwe should allocate resources towards supporting the tourism sector to stimulate economic growth in the country. On the other hand, the study, guided by the validity of the EDTGH in the long run, suggests that the Government of Zimbabwe should also consider allocating resources to other sectors currently driving the economy, for example, the agriculture and manufacturing sectors; as this will stimulate economic expansion in the long run.

scholarly journals Money Supply, Inflation and Economic Growth in China: An ARDL Bounds Testing Approach

2020 ◽  
pp. 73-80
Author(s):  
Cheng-Wen Lee ◽  
Hao-Yuan Yu
Keyword(s):  
Economic Growth ◽  
Money Supply ◽  
Time Series Data ◽  
National Income ◽  
Series Data ◽  
Bounds Testing ◽  
Long Run ◽  
Monetary Neutrality ◽  
Bounds Testing Approach ◽  
Testing Approach

The empirical analysis applies the autoregressive distributed lag bounds testing approach to investigate the relationship between money supply, inflation and economic growth in China with the time series data from 1980 to 2018, estimate the cointegration of monetary and economic growth in long-run relationship and uses vector error correction model to determine the short-run adjustment between the variables. The research showed that the increase in national income met people's demand for goods and eased inflationary pressures. The results support the view of monetarism and help the government formulate economic policies in a prudent manner to control inflation in China. JEL classification numbers: A10, E52, P44 Keywords: ARDL bounds test, Long-Run, Monetary Neutrality.

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