Trade Liberalization and Economic Growth: The Scenario of the MINT Economies

Economy ◽  
2021 ◽  
Vol 8 (2) ◽  
pp. 35-48
Author(s):  
Innocent U Duru
Keyword(s):  
Economic Growth ◽  
Gross Domestic Product ◽  
Trade Liberalization ◽  
Domestic Product ◽  
Causality Test ◽  
Significance Level ◽  
Real Gross Domestic Product ◽  
Policy Objectives ◽  
Per Capita ◽  
The Impact

This study investigated the impact of trade liberalization on economic growth for Mexico, Indonesia, Nigeria and Turkey from 1986 to 2020. The Autoregressive Distributed Lag Bounds approach to cointegration and Toda and Yamamoto causality test were utilized for this study. The long-run results revealed that there is no relationship between trade liberalization and real gross domestic product per capita except for Mexico and in this situation, the significance level was at 10%. The results of the causality test showed that no causality was detected between real gross domestic product per capita and trade liberalization for Mexico and Indonesia. A bidirectional causality between real gross domestic product per capita and trade liberalization was found for Nigeria whereas a unidirectional causality from trade liberalization to real gross domestic product per capita was revealed for Turkey. The no causality results for Mexico and Indonesia means that the policy objectives of trade liberalization and economic growth can be pursued independently in both economies. In addition, the bidirectional causality detected for Nigeria suggests that the policy objectives of trade liberalization and economic growth can be pursued together in Nigeria. Furthermore, the unidirectional causality from trade liberalization to real gross domestic product per capita found for Turkey implies that she employs trade liberalization policies effectively for objectives of economic growth, thus trade liberalization causes economic growth.

Financial Deepening, Financial Intermediation and Nigerian Economic Growth: Time Variant Analysis

2019 ◽  
pp. 60-73
Keyword(s):  
Economic Growth ◽  
Interest Rate ◽  
Gross Domestic Product ◽  
Private Sector ◽  
Money Supply ◽  
Domestic Product ◽  
Financial Deepening ◽  
Causality Test ◽  
Real Gross Domestic Product ◽  
Long Run

This study examines financial deepening, financial intermediation and Nigerian economic growth. The main purpose is to examine the relationship between financial deepening and Nigerian economic growth while the specific objectives are to examine the impact of interest rate, capital market development, rational savings, credit to private sector and broad money supply on the growth of Nigerian. Secondary data of the variables were sourced from the publications of Central Bank of Nigeria (CBN) from 1981-2017. Nigerian Real Gross Domestic Product (RGDP) was used as dependent variable while Broad money supply (M2), Credit to Private Sector (CPS), National Savings (NS), Capital Market Capitalization (CAMP) and Interest Rate (INTR) was used as independent variables. Multiple regressions with E-view statistical package were used as data analysis techniques. Cointegration test, Augmented Dickey Fuller Unit Root Test, Granger causality test was used to determine the relationship between the variable in the long-run and short-run. R2, F – statistics and β Coefficients were used to determine the extent to which the independent variable affects the dependent variable. It was found from the regression result that Broad Money Supply, credit to private sector have position effect on the growth of Nigerian Real Gross Domestic Product while National Savings, Capitalization and Interest Rate on Nigeria Real Gross Domestic Product. The co-integration test revealed presence of long-run relationship among the variables, the stationary test indicated stationarity of the variables at level. The Granger Causality Test found bi – variant relationship from the dependent to the independent and from the independent to the dependent variables. The regression summary found 99.0% explained variation, 560.5031, F – statistics and probability of 0.00000. From the above, the study concludes that financial deepening has significant relationships with Nigerian economic growth. We recommend that government and the financial sector operators should make policies that will further deepen the functions of the financial system to enhance Nigerian economic growth.

scholarly journals Impact of Trade Liberalization on Economic Growth of Nepal

2019 ◽  
Vol 8 ◽  
pp. 136-148
Author(s):  
Ramesh Bahadur Khadka
Keyword(s):  
Economic Growth ◽  
Developing Countries ◽  
Gross Domestic Product ◽  
Trade Liberalization ◽  
World Bank ◽  
Trade Balance ◽  
Trade Openness ◽  
Domestic Product ◽  
Total Trade ◽  
The Impact

Trade openness has been considered as an important determinant of economic growth. It has been witnessed during the past couple of decades that international trade openness has played a significant role in the growth process of both developed and developing countries. International organizations such as Word Trade Organization, International Monetary Fund and World Bank are constantly advising, especially developing countries, to speed up the process of trade liberalization to achieve high economic growth. In this context, this paper aims to analyze the impact of trade liberalization on economic growth of Nepal. For this purpose, all the data regarding gross domestic product, export, import, total trade, trade balance of Nepal from 1980 A.D. to 2013 A.D. published by World Bank (2014) were used. Both descriptive as well as inferential statistics were used to analyze the data. Correlation analysis was used to find the correlation between the selected variables. Multiple linear regression analysis was carried out to analyze the impact of the trade liberalization in economic growth of Nepal. Trade cost does not explain any influence in gross domestic product, export, import, total trade and trade balance. The impact of trade openness is positive for all variables except trade balance. Trade openness has influenced economy significantly; import increased with purchasing power, export also increased but service only. Therefore, there is gap in export and imports.

scholarly journals GLOBALIZATION AND ITS IMPACT ON ECONOMIC GROWTH: EVIDENCE FROM ASEAN COUNTRIES

TRIKONOMIKA ◽  
2020 ◽  
Keyword(s):  
Economic Growth ◽  
Gross Domestic Product ◽  
Positive Impact ◽  
Economic Globalization ◽  
Gdp Per Capita ◽  
Domestic Product ◽  
Brunei Darussalam ◽  
Per Capita ◽  
Asean Countries ◽  
The Impact

This study investigates the impact of globalization toward economic growth in ASEAN countries during 2012 to 2017. The research method used judgmental sampling with samples of 11 countries. They were Brunei Darussalam, Cambodia, East Timor, Indonesia, Lao PDR, Malaysia, Myanmar, Philippines, Singapore, Thailand, and Vietnam. The analysis used path analysis to examine the impact between the variables of globalization and economic growth. Globalization was determined by globalization index, economic globalization, social globalization, and politic globalization. Real Gross Domestic Product (GDP) and Gross Domestic Product (GDP) per capita are used as a proxy for economic growth. The finding results are that globalization index, economic globalization, social globalization, and politic globalization have a significant positive association with Gross Domestic Product (GDP) and Gross Domestic Product (GDP) per capita. Overall globalization evidence the positive impact on economic growth in ASEAN Countries.

scholarly journals Autoregressive Distributed Lag Modeling of the Effects of Some Macroeconomic Variables on Economic Growth in Nigeria

2019 ◽  
Author(s):  
Monday Osagie Adenomon ◽  
Rotimi Olalekan Ojo
Keyword(s):  
Economic Growth ◽  
Interest Rate ◽  
Gross Domestic Product ◽  
Unemployment Rate ◽  
Inflation Rate ◽  
Domestic Product ◽  
Real Gross Domestic Product ◽  
Long Run ◽  
Short Run ◽  
Per Capita

Research background: Relationship between inflation rate, unemployment rate, interest rate and real gross domestic product per capita in Nigeria. However, there seems to be a short-run or long-run relationship among the macroeconomic variables.Purpose: This study investigated the impact of the inflation rate, unemployment rate and interest rate on real gross domestic product per capita (RGDPPC) (proxy for economic growth) and proffered recommendations towards enhancing economic growth and to reduce the distasteful effects of inflation rate, unemployment rate and interest rate in Nigeria in this present time economic challenges.Research methodology: This study applied a linear dynamic model Autoregressive Distributed Lag (ARDL) modeling technique to analyze the short-run dynamics and long-run relationship of the economic growth in Nigeria over the sample period between 1984 and 2017 using annual secondary data extracted from World Bank Development Indicators Report (last updated January 2019).Results: The empirical results showed that there was long-run relationship between inflation rate, unemployment rate and interest rate on real gross domestic product per capita (proxy for economic growth) in Nigeria. The result further revealed that only unemployment rate had a significant positive impact on real gross domestic product per capita in the long-run and inflation rate had a significant negative impact on real gross domestic product per capita in the short-run.Novelty: Therefore, the study concluded that unemployment rate and inflation rate proved to have significant impacts on economic growth in the long-run and short-run respectively. Formulation of policies to reduce unemployment through the adoption of labour concentrated technique of production, entrepreneurship development and policy to keep the inflation rate at single digit.

scholarly journals Autoregressive Distributed Lag Modeling of the Effects of Some Macroeconomic Variables on Economic Growth in Nigeria

2020 ◽  
Vol 20 (2) ◽  
pp. 1-19
Author(s):  
Monday Osagie Adenomon ◽  
Rotimi Olalekan Ojo
Keyword(s):  
Economic Growth ◽  
Interest Rate ◽  
Gross Domestic Product ◽  
Unemployment Rate ◽  
Inflation Rate ◽  
Domestic Product ◽  
Real Gross Domestic Product ◽  
Long Run ◽  
Short Run ◽  
Per Capita

Abstract Research background: The relationship between inflation rate, unemployment rate, interest rate and real gross domestic product per capita in Nigeria. However, there seems to be a short-run or long-run relationship among the macroeconomic variables. Purpose: This study investigated the long and short run impacts of the inflation rate, unemployment rate and interest rate on real gross domestic product per capita (RGDPPC) (proxy for economic growth). Research methodology: This study applied a linear dynamic model Autoregressive Distributed Lag (ARDL) modeling technique to analyze the short-run dynamics and long-run relationship of economic growth in Nigeria over the sample period between 1984 and 2017 using annual secondary data extracted from the World Bank Development Indicators Report. Results: The empirical results showed that there was a long-run relationship between the inflation rate, unemployment rate and interest rate on real gross domestic product per capita (proxy for economic growth) in Nigeria. The results further revealed that only the unemployment rate had a significant positive impact on real gross domestic product per capita in the long-run and the inflation rate had a significant negative impact on real gross domestic product per capita in the short-run. Novelty: Therefore, the study concluded that the unemployment rate and inflation rate proved to have significant impacts on economic growth in the long-run and short-run respectively. The formulation of policies to reduce unemployment through the adoption of a labour concentrated technique of production, entrepreneurship development and policy to keep the inflation rate a single digit.

scholarly journals Non-Oil Sector and Economic Growth in Nigeria: The National Accounts Perspective

2021 ◽  
Vol 10 (1) ◽  
pp. 185
Author(s):  
Abel Oghenevwoke Ideh ◽  
Ndu Marvis Okolo ◽  
Emeka Steve Emengini
Keyword(s):  
Economic Growth ◽  
Gross Domestic Product ◽  
Domestic Product ◽  
National Accounts ◽  
Model Stability ◽  
Real Gross Domestic Product ◽  
Long Run ◽  
Short Run ◽  
Oil Sector ◽  
The Impact

This study examines the impact of expansion in non-oil sector on sustainable economic growth of Nigeria economy. The study sourced data from the Central bank of Nigeria (CBN) statistical bulletin covering the periods of 2000 – 2019. An economic growth model was formulated using the study variables and the model was estimated using vector auto-regression  (VAR) techniques, other diagnostic tests such as  Roots of Characteristic Polynomial for VAR model stability, Augmented Dickey-Fuller test for time series stationarity, and granger causality tests were conducted to ensure the reliability of the model estimates. The analysis revealed that the estimated model is stable while the VAR and variance decomposition results shows that real gross domestic product is strongly endogenous in the short run but weakly endogenous in the long run. Further findings suggest that in the long run non-oil sector is strongly endogenous to real gross domestic product (92% contribution). The study, therefore, recommends diversification of the Nigerian economy by focusing more attention on agriculture, solid minerals, and service sectors as they tend to influence economic growth in the long run. More so, improved frameworks of accounting in areas of non-oil revenues are desirable for the accountancy profession.

scholarly journals GLOBALIZATION AND ITS IMPACT ON ECONOMIC GROWTH: EVIDENCE FROM ASEAN COUNTRIES

2019 ◽  
Vol 14 (2) ◽  
pp. 104
Author(s):  
Sardiyo Sardiyo ◽  
Martini Dhasman
Keyword(s):  
Economic Growth ◽  
Gross Domestic Product ◽  
Positive Association ◽  
Economic Globalization ◽  
Gdp Per Capita ◽  
Domestic Product ◽  
Real Gross Domestic Product ◽  
Brunei Darussalam ◽  
Per Capita ◽  
Asean Countries

The economic growth in ASEAN countries increases and develops in each year. globalization has a positive effect on economic growth through the effectiveness of the allocation of domestic resources, technological diffusion, increased productivity and capital. This study investigates globalization to economic growth in ASEAN in 2012-2017. The research method used judgmental sampling with samples of 11 countries. They were Brunei Darussalam, Cambodia, East Timor, Indonesia, Lao PDR, Malaysia, Myanmar, Philippines, Singapore, Thailand, and Vietnam. The analysis used path analysis to examine each variable. Globalization was determined by globalization index, economic globalization, social globalization, and politic globalization. Real Gross Domestic Product (GDP) and Gross Domestic Product (GDP) per capita are used as proxy for economic growth. The results describe that globalization had a significant positive association with economic growth. All indicators of globalization, show the positive association between globalization index, economic globalization, social globalization, and politic globalization to real Gross Domestic Product (GDP) and Gross Domestic Product (GDP) per capita. This confirms that globalization is able to provide a positive response in ASEAN.

Financial Deepening, Financial Intermediation and Nigerian Economic Growth: Time Variant Analysis

2019 ◽  
Vol 1 (1) ◽  
pp. 60-73
Author(s):  
Uzokwe Grace Onyinyechi
Keyword(s):  
Economic Growth ◽  
Interest Rate ◽  
Gross Domestic Product ◽  
Private Sector ◽  
Money Supply ◽  
Domestic Product ◽  
Financial Deepening ◽  
Causality Test ◽  
Real Gross Domestic Product ◽  
Long Run

This study examines financial deepening, financial intermediation and Nigerian economic growth. The main purpose is to examine the relationship between financial deepening and Nigerian economic growth while the specific objectives are to examine the impact of interest rate, capital market development, rational savings, credit to private sector and broad money supply on the growth of Nigerian. Secondary data of the variables were sourced from the publications of Central Bank of Nigeria (CBN) from 1981-2017. Nigerian Real Gross Domestic Product (RGDP) was used as dependent variable while Broad money supply (M2), Credit to Private Sector (CPS), National Savings (NS), Capital Market Capitalization (CAMP) and Interest Rate (INTR) was used as independent variables. Multiple regressions with E-view statistical package were used as data analysis techniques. Cointegration test, Augmented Dickey Fuller Unit Root Test, Granger causality test was used to determine the relationship between the variable in the long-run and short-run. R2, F – statistics and β Coefficients were used to determine the extent to which the independent variable affects the dependent variable. It was found from the regression result that Broad Money Supply, credit to private sector have position effect on the growth of Nigerian Real Gross Domestic Product while National Savings, Capitalization and Interest Rate on Nigeria Real Gross Domestic Product. The co-integration test revealed presence of long-run relationship among the variables, the stationary test indicated stationarity of the variables at level. The Granger Causality Test found bi – variant relationship from the dependent to the independent and from the independent to the dependent variables. The regression summary found 99.0% explained variation, 560.5031, F – statistics and probability of 0.00000. From the above, the study concludes that financial deepening has significant relationships with Nigerian economic growth. We recommend that government and the financial sector operators should make policies that will further deepen the functions of the financial system to enhance Nigerian economic growth.

Measuring Effectiveness Of Economic Growth On Reducing Infant Mortality Rate In Tamilnadu

2019 ◽  
Vol 118 (4) ◽  
pp. 129-141
Author(s):  
Mr. Y. EBENEZER
Keyword(s):  
Economic Growth ◽  
Mortality Rate ◽  
Infant Mortality ◽  
Negative Relationship ◽  
Infant Mortality Rate ◽  
Domestic Product ◽  
Per Capita ◽  
The Impact ◽  
Adf Test ◽  
Bound Test

                   This paper deals with economic growth and infant mortality rate in Tamilnadu. The objects of this paper are to test the relationship between Per capita Net State Domestic Product and infant mortality rate and also to measure the impact of Per capita Net State Domestic Product on infant mortality rate in Tamil Nadu. This analysis has employed the ADF test and ARDL approach. The result of the study shows that IMR got reduced and Per capita Net State Domestic Product increased during the study period. This analysis also revealed that there is a negative relationship between IMR and the economic growth of Tamilnadu. In addition, ARDL bound test result has concluded that per capita Net State Domestic Product of Tamilnadu has long run association with IMR.

scholarly journals KAPSARC Oil Market Outlook

2021 ◽  
Author(s):  
Keyword(s):  
Economic Growth ◽  
Gross Domestic Product ◽  
International Monetary Fund ◽  
Domestic Product ◽  
Real Gross Domestic Product ◽  
The Third ◽  
Oil Market ◽  
Market Outlook ◽  
Oil Demand ◽  
The International Monetary Fund

Total global oil demand is expected to increase year-on-year (YoY) by 4.2 million barrels per day (MMb/d) in 2021 and further grow by 3.5 MMb/d in 2022, returning to 2019 levels by the third quarter (Q3) 2022. The International Monetary Fund (IMF) predicts economic growth of around 5.4% in 2021, compared with a decline in real gross domestic product (GDP) in 2020 of -4.4%. However, KOMO estimates a forecast more in line with the OECD’s outlook for growth (4.2%), which presumes that GDP levels will only reach 2019 levels by the end of 2021.

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