scholarly journals DOES TOTAL FACTOR PRODUCTIVITY CONVERGE AMONG ASEAN COUNTRIES?

2019 ◽  
pp. 477-494
Author(s):  
Badri Narayan Rath
Keyword(s):  
Economic Growth ◽  
Total Factor Productivity ◽  
Lagrange Multiplier ◽  
Unit Root ◽  
Unit Root Tests ◽  
Annual Data ◽  
Alternative Measure ◽  
Factor Productivity ◽  
Productivity Convergence ◽  
Asean Countries

This paper examines the productivity convergence of the five original Association ofSoutheast Asian Nations (ASEAN) countries, namely Indonesia, Malaysia, Philippines,Singapore, and Thailand (ASEAN-5), using annual data spanning the period 1968to 2014. Results from two-break Lagrange multiplier and residual augmented leastsquares Lagrange multiplier unit root tests reveal strong evidence of productivityconvergence in case of ASEAN-5. Further, the results based on Phillips–Sul panelclub convergence also reveal productivity convergence. To check the robustness ofour finding, we use an alternative measure of total factor productivity and still findevidence of convergence. We infer that such productivity improvements may helpASEAN countries to achieve a higher pace of economic growth.

scholarly journals The Relationship Between Public Expenditures, Total Factor Productivity and Economic Growth: A Panel Data Analysis

2021 ◽  
Author(s):  
Remzi Can Yılmaz ◽  
Ahmet Rutkay Ardoğan
Keyword(s):  
Economic Growth ◽  
Total Factor Productivity ◽  
Developing Economies ◽  
Panel Data Analysis ◽  
Statistical Significance ◽  
Data Availability ◽  
Public Expenditures ◽  
Annual Data ◽  
Factor Productivity ◽  
The Relationship

According to the economics literature, there are two main sources of economic growth. While the first of the resources is the accumulation of production factors, the other is the part of the output that cannot be explained by the amount of input used in production, in other words, the total factor productivity. The level of total factor productivity is measured according to how efficiently the inputs are used in the production process. In this study, the hypothesis that public spending affects real economic growth through total productivity is investigated. In the first stage, whether the changes in public expenditures affect the total factor productivity or not; if it does, to what extent and in what direction it has been tried to be revealed. In the second stage, the effect of total factor productivity on economic growth was examined and the statistical significance, direction and extent of the relationship between variables were investigated. Annual data were used in the study and the year range is 2000-2017. The sampling economies were selected according to data availability, and there are a total of 20 developed and developing economies. Research was conducted using multiple panel regression analysis. According to the findings, the relationship between public expenditures and total factor productivity is statistically significant. An increase in public expenditures reduces the total factor productivity. The relationship between total factor productivity and economic growth is statistically significant, and an increase in total factor productivity also increases economic growth. An increase in public expenditures affects economic growth negatively by reducing the total factor productivity.

scholarly journals The Impacts of Research and Development Expenses on Export and Economic Growth

2017 ◽  
Vol 1 (1) ◽  
pp. 1 ◽  
Author(s):  
Serhat Yüksel
Keyword(s):  
Economic Growth ◽  
Research And Development ◽  
Unit Root ◽  
Union Member ◽  
Unit Root Tests ◽  
Annual Data ◽  
Causality Analysis ◽  
Panel Unit Root Tests ◽  
Panel Causality ◽  
Causality Relationship

The purpose of this study is to identify the effects of research and development expenses on export and economic growth. Within this scope, annual data of 28 European Union member countries for the periods between 1996 and 2014 was taken into the consideration. Additionally, Dumitrescu Hurlin panel causality analysis was used in this study to achieve this objective. First of all, Im, Pesaran and Shin and Levin, Lin & Chu panel unit root tests were used to understand whether the variables are stationary or not. As a result of these tests, it was defined that the variable of economic growth is stationary whereas other two variables (export and R&D) are not. According to the results of Dumitrescu Hurlin causality analysis, it was determined that there is not a significant relationship between economic growth and R&D. On the other hand, it was concluded that there is a causality relationship from export to R&D expenses. This situation shows that EU member countries, which have higher export amount, give more importance to R&D in order to improve themselves.

Determinants of Economic Growth in Japan: The Role of Foreign Direct Investment

2009 ◽  
Vol 9 (3) ◽  
pp. 1850171 ◽  
Author(s):  
Parviz Asheghian
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Total Factor Productivity ◽  
Direct Investment ◽  
Annual Data ◽  
Causal Relationships ◽  
Domestic Investment ◽  
Factor Productivity ◽  
Investment Growth ◽  
Determinants Of Economic Growth

The purpose of this study is: (1) to examine the determinants of economic growth in Japan over time, and (2) to see if there is any time-series support for FDI-led growth hypothesis in Japan. To achieve these goals the study uses a model that is based on the postulates of de Mello. Employing a 35-year period of annual data, the model is estimated by using the Beach-Mackinnon technique, which corrects for autocorrelation. The estimation results suggest: (1) the major determinants of economic growth in Japan are total factor productivity, and domestic investment growth; (2) there are no causal relationships between foreign direct investment growth and economic growth in either direction; and (3) there are no causal relationships between foreign direct investment growth and total factor productivity growth in either direction.

scholarly journals Oil Consumption and Economic Growth in Turkey: An ARDL Bounds Test Approach in the Presence of Structural Breaks

2019 ◽  
pp. 77-85
Author(s):  
Özgür Özaydın ◽  
H. Alper Güzel
Keyword(s):  
Economic Growth ◽  
Unit Root ◽  
Structural Breaks ◽  
Unit Root Tests ◽  
Annual Data ◽  
Oil Consumption ◽  
Ardl Bounds Test ◽  
Bounds Test ◽  
The Relationship ◽  
Toda And Yamamoto

The aim of this study is to investigate the relationship between oil consumption and income in Turkey, using annual data from 1961 to 2016. The stationarity properties of the series are analyzed with Lee and Strazicizh (2003), unit root test allowing for two structural breaks, along with the conventional unit root tests namely ADF, PP and KPSS. Due to conflicting findings of the unit root tests, ARDL bounds test approach to cointegration is used to capture the relationship between oil consumption and income. The findings of the ARDL bounds test indicated that oil and income are cointegrated. The causal relationship between the variables is also examined by employing Toda and Yamamoto (1995), approach to Granger non-causality. The outcomes of the Toda and Yamamoto (1995), procedure showed that the direction of the causality is running from real GDP to oil consumption, but not vice versa. Both bounds test and Toda and Yamamoto (1995), test results reveal that, energy conservation policies will not harm economic growth in Turkey.

Determinants of Total Factor Productivity in Mexico, Indonesia, Nigeria, and Turkey (1980–2014)

2018 ◽  
Vol 4 (2) ◽  
pp. 192-217 ◽  
Author(s):  
Phillip Akanni Olomola ◽  
Tolulope Temilola Osinubi
Keyword(s):  
Human Capital ◽  
Total Factor Productivity ◽  
Negative Relationship ◽  
Annual Data ◽  
Factor Productivity ◽  
Distributed Lag ◽  
Long Run ◽  
The World ◽  
Government Stability ◽  
Short Run

This study analyzed the macroeconomic and institutional determinants of total factor productivity (TFP) in the MINT (Mexico, Indonesia, Nigeria, and Turkey) countries during the period 1980–2014. Annual data covering the period between 1980 and 2014 were used. Data on real gross domestic product (real GDP), labor force, gross fixed capital formation, foreign direct investment (FDI), human capital, and inflation were sourced from the World Development Indicators published by the World Bank. Also, data on corruption, government stability, and law and order were obtained from the database of International Country Risk Guide. Panel autoregressive distributed lag (PARDL) regression technique was used to estimate the model. Results showed that TFP growth rate declined on average by 1.4 per cent and 1.8 per cent in Mexico and Turkey, respectively, while Indonesia and Nigeria did not experience productivity growth on the average. Results also showed that in the long run, human capital and government stability had positive and significant effects on TFP, while FDI and corruption had negative but significant effects on TFP. In the short run, there existed a significant negative relationship between TFP and inflation. However, the effects of human capital and corruption on TFP were positive and significant. The study concluded that human capital and corruption were key drivers of TFP in the MINT countries both in the long run and short run.

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