scholarly journals Nonlinear growth effect of remittances in recipient countries: an econometric analysis of remittances-growth nexus in Bangladesh

2016 ◽  
Author(s):  
Gazi Mainul Hassan ◽  
Shamim Shakur
Keyword(s):  
Financial Development ◽  
Econometric Analysis ◽  
Growth Effect ◽  
Gdp Growth ◽  
Per Capita Gdp ◽  
Nonlinear Growth ◽  
Migrant Families ◽  
Per Capita ◽  
In The Beginning ◽  
The Impact

The paper examines the impact of inward remittances flows on per capita GDP growth in Bangladesh during 1976-2012. We find that the growth effect of remittances is negative at first but becomes positive at a later stage, an evidence of a non-linear. Unproductive use of remittances was rampant in the beginning when they were received by migrant families but better social and economic investments led to more productive utilisation of remittances receipts at later periods. This was the possible mechanism behind the U-shaped relationship. Unlike what is suggested in the literature that the effect of remittances is more pronounced in a less financially developed economy, our evidence do not show that the effect of remittances on per capita GDP growth in Bangladesh is conditional on the level of financial development.

scholarly journals The Impact of Financial Development on Economic Growth as Countries Develop Financially and Economically: WAEMU Countries Case

2018 ◽  
Vol 5 (5) ◽  
pp. 83
Author(s):  
Daouda Coulibaly
Keyword(s):  
Financial Development ◽  
West African ◽  
Seemingly Unrelated Regression ◽  
Per Capita Gdp ◽  
Real Gdp ◽  
Unrelated Regression ◽  
Cointegration Tests ◽  
Real Gdp Per Capita ◽  
Per Capita ◽  
The Impact

We analyse financial development’s impact on real gross domestic product per capita in seven West African Economic and Monetary Union (WAEMU) countries from 1970 to 2014. We assume that income and financial development process converge to USA, France and Japan’s levels respectively. An analysis of the unit root and cointegration tests revealed non-stationary and cointegrated series. Estimates are based on the Dynamic Seemingly Unrelated Regression method (DSUR). Our study shows that, (i) the effect of financial development on real per capita GDP improves in WAEMU countries as the latter converge financially to their respective levels in USA, France and Japan; (ii) the effect of financial development on real GDP per capita decreases in the WAEMU countries as they grow economically to reach USA, France and Japan’s income levels; (iii) the degree of the effect of financial development on real per capita GDP in the case of financial systems is stronger than that of the convergence of income.

The Impact of Infrastructure on Growth in Developing Countries

2017 ◽  
pp. 40-68 ◽  
Author(s):  
Derya Yılmaz ◽  
Işın Çetin
Keyword(s):  
Developing Countries ◽  
Instrumental Variables ◽  
Dynamic Panel Data ◽  
Gdp Growth ◽  
Per Capita Gdp ◽  
Gdp Growth Rate ◽  
Generating Capacity ◽  
Catch Up ◽  
Per Capita ◽  
The Impact

Infrastructure and growth nexus has been debated in the literature since 1980s. This debate has a vital importance for the sake of developing countries. These countries need to grow faster in order to catch-up their advanced counterparts. Thus, it is important to detect the effect of infrastructure on growth. Bearing in mind this fact, we develop a standard growth regression in this present chapter using per capita GDP growth rate as a dependent variable. Infrastructure is added to the model as an index constructed from the indicators of infrastructure: total electric generating capacity, total telephone lines and the length of road network. We also employ set of instrumental variables comprising 29 developing countries between 1990 and 2014. In order to estimate our dynamic panel data we prefer GMM estimators. According to our empirical analysis, we can claim that infrastructure has a positive and significant impact on growth. But this impact is smaller than the earlier studies predict.

scholarly journals The Impact of Foreign Aid on Economic Growth in Ethiopia

2012 ◽  
Vol 13 (2) ◽  
pp. 87-112
Author(s):  
Mohammed Seid Hussen ◽  
Kye Woo Lee
Keyword(s):  
Economic Growth ◽  
Foreign Aid ◽  
Positive Impact ◽  
Aid Effectiveness ◽  
Gdp Growth ◽  
Domestic Investment ◽  
Per Capita Gdp ◽  
Democratic Regimes ◽  
Per Capita ◽  
The Impact

This paper investigates the impact of foreign aid on investment and economic growth of Ethiopia for the period 1971-2010. The result indicates that foreign aid has a statistically significant positive impact on domestic investment, while aid’s positive impact on per capita GDP growth does not depend on any macroeconomic policy conditionality. Rather, aid effectiveness depends on the peculiar social, political and economic institutions of particular periods. Aid is effective during both socialist and democratic regimes. However, aid’s impact on growth was greater for socialist regimes.

scholarly journals A panel causality analysis of the relationship between financial development and economic growth in OECD countries

2021 ◽  
Vol 9 (2) ◽  
pp. 662-672
Author(s):  
Sevilay Küçüksakarya
Keyword(s):  
Economic Growth ◽  
Private Sector ◽  
Financial Development ◽  
Gdp Growth ◽  
Causality Test ◽  
Panel Causality ◽  
Per Capita Gdp ◽  
Domestic Credit ◽  
Per Capita ◽  
The Relationship

This study examines the relationship between financial development and economic growth. Thus, this study aims to find empirical shreds of evidence for the direction of the causality between financial development proxied by domestic credit to the private sector and per capita GDP growth by using the panel granger causality test of the Dumitrescu-Hurlin Test. For this purpose, we used a panel of 16 OECD countries from 2008 to 2019 to provide evidence of whether the supply leading hypothesis or demand following hypothesis or both holds. All econometric exercises are carried out for whole countries and high-income countries, and upper-middle-income country groups in the sample. Due to cross-sectional dependence among the sample countries, we determine the degree of integration of each variable by employing the second-generation panel unit root tests of CIPS. We continue our analysis with the panel causality test developed by Dumitrescu and Hurlin (2012) to determine the direction of the causality between variables. For this purpose, we performed three sets of causality analyses. In the first one, we include all countries in the panel. We then divided the countries into two sub-groups based on the income classification and the level of financial development in these countries proxied by domestic credit to the private sector. The causality test results, including all countries in the sample, indicate that the hypothesis holds the supply leading hypothesis during the sample period. This means that even though this panel contains countries with a development level, financial development still seems to be a pre-condition for economic growth for these nations. We also obtain the same results when we include high-income countries in the sample. The study results provide compelling evidence for the relationship between economic growth and financial development since the sample includes countries with different levels of financial development with different degrees of per capita GDP growth.

Emerging from the Global Crisis - Macroeconomic Challenges Facing Low-Income Countries

Policy Papers ◽  
2010 ◽  
Vol 2010 (40) ◽  
Author(s):  
Keyword(s):  
Interest Rates ◽  
Low Income ◽  
Low Income Countries ◽  
Gdp Growth ◽  
Export Demand ◽  
Global Crisis ◽  
Economic Growth Rate ◽  
Per Capita Gdp ◽  
Per Capita ◽  
The Impact

While the impact of the global crisis has been severe, real per capita GDP growth stayed positive in two-thirds of low-income countries (LICs), unlike in previous global downturns, and in contrast to richer countries. The crisis affected LICs not so much through the terms of trade or global interest rates, but rather through a sharp contraction in export demand, foreign direct investment, and remittances (oil exporters also suffered from a sharp fall in oil prices). LICs saw the sharpest decline in their economic growth rate over the last four decades. However, this slowdown followed a period of strong expansion, and real per capita GDP growth has generally held up in LICs, remaining well above growth in richer countries.

scholarly journals Do Military Expenditure and Conflict Affect Economic Growth in Sri Lanka? Evidence from the ARDL Bounds Test Approach

2016 ◽  
Vol 8 (3) ◽  
pp. 1
Author(s):  
Abdul Rasheed Sithy Jesmy ◽  
Mohd Zaini Abd Karim ◽  
Shri Dewi Applanaidu
Keyword(s):  
Growth Rate ◽  
Civil War ◽  
Sri Lanka ◽  
Military Expenditure ◽  
Gdp Growth ◽  
Per Capita Gdp ◽  
Long Run ◽  
Gdp Growth Rate ◽  
Per Capita ◽  
Bounds Test

Conflicts in the form of civil war, ethnic tensions and political discord are of enduring concern and a major bottleneck to economic development in Sri Lanka. Three decades of civil war and unethical political culture have caused severe economic problems for the country, including slower rate of growth and a huge defence expenditure. The aim of this study is to examine the effect of military expenditure and conflict on per capita GDP growth rate in Sri Lanka from 1973 to 2014 using the Solow growth model and ARDL bounds test approach. The results of the bounds test are highly significant and lead to cointegration. The negative and significant coefficients of the error correction term illustrate the expected convergence process in the long-run dynamic of per capita GDP. The estimated empirical results show that, the coefficients of military expenditure and conflict are negative and statistically significant in the short-run as well as in the long-run in determining per capita GDP growth rate in Sri Lanka. Hence, it is critically important to take necessary action to decrease military expenditure and provide an efficient political solution to the problem of minorities, specifically in the post-war period.

scholarly journals Impact of unemployment and income on entrepreneurship in post-apartheid South Africa: 1994–2015

2018 ◽  
Vol 10 (1) ◽  
Author(s):  
Darma Mahadea ◽  
Irrshad Kaseeram
Keyword(s):  
Economic Growth ◽  
South Africa ◽  
Employment Growth ◽  
Positive Impact ◽  
Early Stage ◽  
National Development ◽  
Entrepreneurial Activity ◽  
Per Capita Gdp ◽  
Per Capita ◽  
The Impact

Background: South Africa has made significant progress since the dawn of democracy in 1994. It registered positive economic growth rates and its real gross domestic product (GDP) per capita increased from R42 849 in 1994 to over R56 000 in 2015. However, employment growth lagged behind GDP growth, resulting in rising unemployment. Aim and setting: Entrepreneurship brings together labour and capital in generating income, output and employment. According to South Africa’s National Development Plan, employment growth would come mainly from small-firm entrepreneurship and economic growth. Accordingly, this article investigates the impact unemployment and per capita income have on early stage total entrepreneurship activity (TEA) in South Africa, using data covering the 1994–2015 period. Methods: The methodology used is the dynamic least squares regression. The article tests the assertion that economic growth, proxied by real per capita GDP income, promotes entrepreneurship and that high unemployment forces necessity entrepreneurship. Results: The regression results indicate that per capita real GDP, which increases with economic growth, has a highly significant, positive impact on entrepreneurial activity, while unemployment has a weaker effect. A 1% rise in real per capita GDP results in a 0.16% rise in TEA entrepreneurship, and a 1% rise in unemployment is associated with a 0.25% rise in TEA. Conclusion: There seems to be a strong pull factor, from income growth to entrepreneurship and a reasonable push from unemployment to entrepreneurship, as individuals without employment are forced to self-employment as a necessity, survival mechanism. Overall, a long-run co-integrating relationship seems plausible between unemployment, income and entrepreneurship in South Africa.

scholarly journals Urban Geographical Economics and per Capita GDP Growth in Romania

2012 ◽  
Vol XV (Issue 3) ◽  
pp. 109-134
Author(s):  
Jesús López-Rodríguez ◽  
Cosmin Bolea-Gabriel
Keyword(s):  
Gdp Growth ◽  
Per Capita Gdp ◽  
Per Capita

scholarly journals The Impact of New Technologies and Human Capital on the Contribution of New Ways to the Economy of the Regions of the Northwest Federal District

2017 ◽  
Vol 5 (2) ◽  
pp. 43-45 ◽  
Author(s):  
Басовская ◽  
Elena Basovskaya ◽  
Басовский ◽  
Leonid Basovskiy
Keyword(s):  
Higher Education ◽  
Human Capital ◽  
New Technologies ◽  
Federal District ◽  
Komi Republic ◽  
Per Capita Gdp ◽  
Fixed Assets ◽  
Pskov Region ◽  
Per Capita ◽  
The Impact

Econometric impact assessments of new technologies and human capital on a contribution of new technological ways to per capita GDP in regions of Northwest Federal District of Russia are received. Coefficients of elasticity of a contribution of new ways to per capita GDP on use of the new technologies estimated by armament the work equity new fixed assets and for use of the human capital estimated by a share of busy workers with the higher education are estimated. The use of new technologies is the most effective in St. Petersburg, in the Murmansk, Leningrad regions and in the Komi Republic. Efficiency use of new technologies in the Pskov region is the lowest. The human capital is most effectively in the Komi Republic, the Murmansk and Leningrad regions. Efficiency use of a human capital in the Pskov region is the lowest.

scholarly journals Nonlinear Effects of Remittances on Per Capita GDP Growth in Bangladesh

Economies ◽  
2017 ◽  
Vol 5 (3) ◽  
pp. 25 ◽  
Author(s):  
Gazi Hassan ◽  
Shamim Shakur
Keyword(s):  
Nonlinear Effects ◽  
Gdp Growth ◽  
Per Capita Gdp ◽  
Per Capita
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