scholarly journals The Determinants of Economic Growth in CEMAC through a Panel Data Approach

2016 ◽  
Vol 4 (2) ◽  
pp. 483
Author(s):  
Nzingoula Gildas Crepin
Keyword(s):  
Economic Growth ◽  
Panel Data ◽  
Fixed Effects ◽  
Good Governance ◽  
Generalized Method Of Moments ◽  
Central Africa ◽  
Ordinary Least Squares ◽  
Fixed Effects Model ◽  
Main Determinants ◽  
Determinants Of Economic Growth

<div><p><em>This article highlights through a panel data approach the determinants of economic growth; observed over the last decade in the Economic and Monetary Community of Central Africa (CEMAC) and necessary to reach emerging economies stage. To do this, we essentially used Stata 12 software to come up with the results, and a panel data sample comprising six CEMAC member states, namely Congo, Cameroon, Gabon, Equatorial Guinea, Central African Republic and Chad, for the period ranging from 2000 to 2013. The results obtained after estimating ordinary least squares, fixed effects model, random effects model, generalized method of moments (GMM) and specification tests show that the best model to estimate these types of data is the fixed effects model. Besides, the main determinants of economic growth in CEMAC over that period are Foreign Direct Investment (FDI) and loans lending to the economy (LOAN). After estimation, FDI is found positive and significant on economic growth, while LOAN is significant and found negative maybe due to lack of good governance.</em></p></div>

scholarly journals Export and Economic Growth Nexus in the GCC Countries: A panel Data Approach

2017 ◽  
Vol 7 (12) ◽  
pp. 01
Author(s):  
Hatem Hatef Abdulkadhim ◽  
Sazan Taher Saeed
Keyword(s):  
Economic Growth ◽  
Panel Data ◽  
Fixed Effects ◽  
Panel Data Analysis ◽  
Strong Support ◽  
Ordinary Least Squares ◽  
Empirical Literature ◽  
Fixed Effects Model ◽  
Font Size ◽  
Growth Hypothesis

<p><span style="font-size: medium;">The export and economic growth nexus, which is called Balassa’s Export-Led Growth Hypothesis (ELGH)  </span><span style="font-size: medium;">in the literature, is still an unstill issue in both the theoretical and empirical literature. In the present study, the effect of export on economic growth in</span><span style="font-size: medium;">  </span><span style="font-size: medium;">oil exporting developing countries, namely, Bahrain, Saudi Arabia, Qatar,</span><span style="font-size: medium;">  </span><span style="font-size: medium;">Kuwait, UAE, and Oman in the 1990–2014 period was tested based on three models, pooled ordinary least squares (POLS), fixed effects model (FEM), and random effects model (REM)</span><span style="font-size: medium;">  </span><span style="font-size: medium;">via panel data analysis . The findings revealed strong support for the “export-led growth” hypothesis. In addition, our results show that apart from growth in the labor force, investments in capital formation are necessary for economic growth. According to the obtained results, the ability to adopt technological changes in order to increase efficiency, and sustain economic development is also important.</span><span style="font-size: medium;">  </span></p>

The Impact of Population Aging on Economic Growth: Panel Data Evidence from Middle East Countries

2021 ◽  
pp. 67-86
Author(s):  
Abdullah Abdulaziz Bawazir ◽  
Mohamed Aslam ◽  
Ahmad Farid Osman
Keyword(s):  
Economic Growth ◽  
Panel Data ◽  
Middle East ◽  
Fixed Effects ◽  
Population Aging ◽  
Developed Countries ◽  
Ordinary Least Squares ◽  
Dependency Ratio ◽  
Middle East Countries ◽  
The Developed Countries

This study examines the relationship between population aging and economic growth in a panel of 10 selected Middle East countries for the period of 1996–2016. For this purpose, this study uses two different measures of population aging, namely population aged 65 and over and old dependency ratio, to investigate their impacts on economic growth. The study utilizes the three alternative models of static panel data comprised of the pooled ordinary least squares, random effects, and fixed effects. The results of the robust fixed effects model indicate that the population aged 65 and over and the old dependency ratio have a positive effect on economic growth. The finding supports the argument indicating that an aging population does not necessarily adversely affect economic growth in the developing countries as it does in the developed countries. Therefore, the elderly population is not a matter of concern for the Middle East and the mechanisms through which the effect can take place are savings behavior and human capital accumulation of the individuals.

Shadow Economy, Corruption, and Economic Growth: An Empirical Analysis

2019 ◽  
Vol 47 (3) ◽  
pp. 276-294 ◽  
Author(s):  
Nedra Baklouti ◽  
Younes Boujelbene
Keyword(s):  
Economic Growth ◽  
Least Squares ◽  
Public Administration ◽  
Method Of Moments ◽  
Fixed Effects ◽  
Shadow Economy ◽  
Generalized Method Of Moments ◽  
Ordinary Least Squares ◽  
Negative Effects ◽  
Considerable Debate

There is considerable debate over the effects of both corruption and shadow economy on growth, but few studies have considered how the interaction between them might affect economic growth. We study how corruption levels in public administration affect economic growth and how this effect depends on the shadow economy. Using Ordinary Least Squares (OLS), fixed effects, and system generalized method of moments (GMM) on a dataset of 34 OECD countries over the period 1995-2014. The estimation results indicate that increased corruption and a larger shadow economy lead to decrease in economic growth. Results additionally indicate that the shadow economy magnifies the effect of corruption on economic growth. These results imply significant complementarities between corruption and the shadow economy, suggesting that the reduction of corruption will lead to a fall in the size of the shadow economy and will also reduce the negative effects of corruption on economic growth through the underground economy.

scholarly journals Media and Economic Growth: Country Groups Difference via Panel Data

2020 ◽  
Vol 5 (5) ◽  
Author(s):  
Viktoriia Ahapova
Keyword(s):  
Economic Growth ◽  
Panel Data ◽  
Fixed Effects ◽  
Panel Data Analysis ◽  
Press Freedom ◽  
Foreign Direct Investments ◽  
Fixed Effects Model ◽  
Data Set ◽  
The Press ◽  
Per Capita

The present article investigates the link between economic growth, namely GDP per capita, and the media activity represented with the indicator of the press freedom alongside other factors such as infrastructure, institutional conditions, and foreign direct investments. A panel of 179 countries was used for the period from 2000 to 2015. In particular, we run two panel data analysis models, fixed effects and random effects models, and examined their output with Hausman’s specification test, which pointed the fixed effects model as more efficient for the presented data set. However due to the presence of serial correlation, heteroskedastic, and cross-panel dependence, a Prais-Winsten regression with panel corrected standard errors (PCSE) was implemented. The comparative analysis of models of four country groups, divided by GNI per capita, was conducted. Both statistically significant correlation coefficients and models’ output provided evidence of an association between economic growth and the press activity.

scholarly journals Effect of macroeconomic variables on systemic risk: Evidence from Vietnamese economy

2021 ◽  
Vol 10 (3) ◽  
pp. 217-228
Author(s):  
Thi Xuan Huong Tram ◽  
Nguyen Thi Thanh Hoai
Keyword(s):  
Economic Growth ◽  
Exchange Rate ◽  
Interest Rate ◽  
Interest Rates ◽  
Systemic Risk ◽  
Fixed Effects ◽  
Positive Impact ◽  
Generalized Method Of Moments ◽  
Negative Relationship ◽  
Ordinary Least Squares

This paper aims to find out the relationship between systemic risk in Vietnam and the effects of macroeconomic factors, including exchange rate, interest rates, and economic growth. We collect data from the Vietnamese stock market, specifically 29 listed financial firms (banks, insurance companies, and securities firms) for the period 2010-2018. The analysis is performed in two steps including systematic risk measurement in Vietnam based on the Systemic Expected Shortfall (SES) method and providing evidence from analysis related to the risk determinants assessment. Besides ordinary least squares (OLS) methods, we make use of fixed-effects (FEM) estimations, random-effects (REM) estimations, and system generalized method of moments (SGMM). The empirical evidence in this paper indicates that economic growth has a negative relationship on systemic risk in Vietnam while the exchange rate has a positive impact on systemic risk, and the interest rate has a negative relationship on systemic risk in Vietnam. Future studies can address the effects of interest rate on systemic risk during this period.

scholarly journals Global FDI Inflow and Its Implication across Economic Income Groups

2020 ◽  
Vol 13 (11) ◽  
pp. 291
Author(s):  
Udi Joshua ◽  
Mathew Ekundayo Rotimi ◽  
Samuel Asumadu Sarkodie
Keyword(s):  
Economic Growth ◽  
Fixed Effects ◽  
Trade Openness ◽  
Generalized Method Of Moments ◽  
Income Group ◽  
Ordinary Least Squares ◽  
Business Environment ◽  
Positive Influence ◽  
Panel Estimation ◽  
The Impact

Foreign direct investment (FDI) as a driver of growth is important in today’s globalized economy. It is extremely difficult for economies to grow sustainably without economic interactions outside their borders. However, there has been a debate on the impact of FDI inflow on economic expansion. Hence, this study investigated the influence of FDI on economic growth for a selection of 200 economies around the world for the period 1990–2018. We subdivided the sample into World Bank income group clusters to aid comparison across income blocs. The study employed panel estimation techniques including pooled ordinary least squares (POLS), dynamic panel estimation with fixed-effects and random-effects and generalized method of moments (GMM). The study found that FDI, debt stock and official development assistance are promoters of growth in the selected countries—although debt stock weakly impacts economic growth. In contrast, trade openness and exchange rates had a mixed (negative and positive) influence on economic growth. The study suggests that the creation of a conducive business environment and economic policies will attract FDI inflows. Additionally, borrowing from external sources could be minimized despite its perceived positive influence on growth to achieve financial independence.

scholarly journals The Effect of Varieties of Capitalism on the Relationship of Institutional Gearing and Economic Growth

2020 ◽  
Vol 31 (3) ◽  
pp. 262-269 ◽  
Author(s):  
Marisol Borges ◽  
Edgar Juan Saucedo-Acosta ◽  
Jesús Diaz-Pedroza
Keyword(s):  
Economic Growth ◽  
Fixed Effects ◽  
Varieties Of Capitalism ◽  
Market Economies ◽  
Coordinated Market Economies ◽  
Liberal Market Economies ◽  
Main Determinants ◽  
Relationship Of ◽  
Determinants Of Economic Growth ◽  
The Relationship

The ways the firm solves coordination problems with the different stakeholders (or the varieties of capitalism of nations) affect economic performance. Institutional gearing is one of the main determinants of economic growth. Nevertheless, there are no studies that analyse the effect of varieties of capitalism on the relationship of institutional gearing and economic growth. The objective of the paper is to estimate the effect of the variety of capitalism on the relationship between the institutional gearing index and other macroeconomic control variables on the GDP per capita in a group of developed and developing countries. To do that 3 panel data models were estimated: one with fixed effects and two with random effects, for 31 countries for the period 2011-2015. We used 16 Coordinated Market Economies and Liberal Market Economies and 15 Hierarchical Market Economies. The results showed the varieties of capitalism affect the relationship between institutional gearing and economic growth. In the Coordinated Market Economies and Liberal Market Economies this effect is higher than in Hierarchical Market Economies. Governments of Hierarchical Market Economies should not only apply public policies to build functional institutions, but also encourage the positive complementarities among them.

scholarly journals Financial development and economic growth in the CEPGL region: evidence based on panel data

2021 ◽  
Vol 39 (2) ◽  
Author(s):  
Alexis Nyamugira Biringanine ◽  
Kazamwali Mzee
Keyword(s):  
Economic Growth ◽  
Panel Data ◽  
Financial Development ◽  
Fixed Effects ◽  
Economic Status ◽  
Financial System ◽  
Fixed Effects Model ◽  
Correction Model ◽  
Bidirectional Relationship ◽  
The Relationship

This paper contributes to the huge debate on the relationship between financial development and the economic growth. The evidence is applied to the CEPGL (Communauté Economique des Pays des Grands Lacs) region. Previous studies have concluded either to the absence of connection between the two spheres, to a unidirectional or bidirectional relationship, or to a differentiated connection depending on the economic status of development of the country. The research design applied in this research has been inspired by the reality of the region by running an Error Correction Model for each country and a fixed effects model on panel data for the whole region. Therefore, we estimated econometric models from a series of macroeconomic data relating to the depth, and the accessibility of the financial system. The data used in this study range from 1976 to 2013. Insights from this study show that the financial system of the region is extremely underdeveloped, a weak connection between the financial and the economic sphere, in addition to an ambivalent sense of causality. 

scholarly journals Determinants of Economic Growth in Organization of Islamic Cooperation with Governance Index as a Moderating Variable

2021 ◽  
Vol 04 (08) ◽  
Author(s):  
Akmal Ihsan ◽  
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
Good Governance ◽  
Trade Openness ◽  
Generalized Method Of Moments ◽  
Negative Influence ◽  
Statistical Testing ◽  
Governance Index ◽  
Determinants Of Economic Growth

This study seeks to explore and investigate the influence of foreign direct investment, remittances, and trade openness on economic growth in the Organization of Islamic Cooperation with governance index as a moderating variable in 2005-2019. Moderated Regression Analysis analysis is used to analyze governance index variables. The use of Generalized Least Square and Generalized Method of Moments is used to determine which method is best. Sargant level of significance and value showed GMM more precisely in this study. The results of statistical testing show that all independent variables have a significant positive influence on economic growth except foreign direct investment which has a significant negative influence. This negative influence is due to the instability of investment flows. In addition, governance index can moderate foreign direct investment, remittances, and trade openness in its influence on economic growth.Thus, it can be concluded that to increase economic growth, the need for good governance index so that economic growth in the Organization of Islamic Cooperation is increasing.

scholarly journals Measuring economic growth in OPEC countries : A panel data approach

2015 ◽  
Vol 4 (2) ◽  
pp. 345
Author(s):  
Johnson Taiwo Olajide ◽  
Jubril Oluwatoyin Fantola ◽  
Olufemi Aderemi Ayansola
Keyword(s):  
Economic Growth ◽  
Purchasing Power Parity ◽  
Fixed Effects ◽  
Random Effect ◽  
Developed Countries ◽  
Ordinary Least Squares ◽  
Positive Influence ◽  
Fixed Effects Model ◽  
Power Parity ◽  
Test Statistic

<p>Most of the developing and under-developed countries have been facing a lot of challenges on the issue of economic growth, despite the fact that they are endowed with both natural and human resources. This study examines the determinants of real per Capita GDP growth in Organization of the Petroleum Exporting Countries (OPEC) using a panel of twelve countries for the period of 1986 and 2010.The pooled Ordinary Least Squares (OLS), Fixed Effect (FE) and Random Effect (RE) models were employed to assess the relationship between CGDP and other economic variables used. The result showed that price level of consumptions (pc) and investment share (ci) are the important factors of CGDP that contribute to the economic growth of OPEC countries. The result also established that exchange rate (Xrat), price of GDP (p), purchasing power parity (ppp) and ci have a positive influence on CGDP. The test statistic revealed that Random Effects Model (REM) estimator is more efficient than OLS and that there is no significance difference between Fixed Effects Model (FEM) and REM estimators.</p>

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