scholarly journals Financial Stability and Economic Growth: Evidence from North Cyprus

2021 ◽  
Author(s):  
Ergin Akalpler
Keyword(s):  
Economic Growth ◽  
Growth Rate ◽  
Public Debt ◽  
Financial Stability ◽  
Government Expenditures ◽  
Series Data ◽  
Net Exports ◽  
North Cyprus ◽  
Total Capital ◽  
Independent Variable

Abstract Given the importance of public debt for financial stability and economic progress, this article examines the unstable economic growth rate in Northern Cyprus. The causal relationships between public debt, public expenditures, total capital, consumption, investment, employment, net exports, and GDP growth rate are questioned. This study used annual time series data between 1980 and 2018 obtained from the State Planning Organization. An unrestricted VAR model was used to test the causal relationship of these variables. Findings show that public debt has no direct effect on GDP. However, it indirectly affects the total capital and government expenditures as an independent variable. Except for public debt, all other variables have a value that will affect net exports. Unlike other studies, employment as an independent variable has the value of influencing GDP, total capital, consumption, government expenditures, and net exports as dependent variables. It has been observed that consumption, investment, and government expenditure coefficients have values that will affect GDP. Insufficient control of government practices, the North Cyprus government's inefficient plans to encourage domestic production, insufficient enforcement power of domestic producers, as well as increased capital outflows, increased government debt, and budget deficit are not sustainable models.

scholarly journals The Impact of Capital Flight on Economic Growth and Financial Stability in Palestine

2021 ◽  
pp. 85-101
Author(s):  
Nemer Badwan
Keyword(s):  
Economic Growth ◽  
Growth Rate ◽  
Financial Stability ◽  
Production Costs ◽  
Capital Flight ◽  
Series Data ◽  
Investment Environment ◽  
Economic Growth Rate ◽  
The Government ◽  
The Impact

This study examined the impact of Capital Flight on Economic Growth and Financial Stability in Palestine from the period (2000-2020). The time series data of Capital Flight, Foreign Exchange Reserves, Foreign Debt, and Real GDP used in the study, and the use of ordinary least squares estimation technology to analyze the research data. Carried out Johansen co-integration and error correction mechanism. The evidence of the research results shows that there is a co-integration relationship between the research variables, and Capital Flight has harmed the Economic Growth of the Palestinian case. Based on these findings, the study recommends that the government should provide a favorable investment environment to encourage investment and prevent Capital Flight from Palestine. In addition, the Palestinian Government should also prevent Capital Flight because these Infrastructure Projects/Programs will reduce the country’s production costs. The government should create a suitable investment environment for foreign investment and encourage entrepreneurs and equity owners to invest these funds domestically. In addition, the government should use all Foreign Aid funds in appropriate places to increase the Economic Growth Rate and create job opportunities for the unemployed, thereby increasing the National Economic Growth Rate.

Does Public Debt Service Expenditure Crowd-Out Economic Growth? Empirical Evidence from an African Developing Country

2019 ◽  
Vol 64 (3) ◽  
pp. 23-38
Author(s):  
Talknice Saungweme ◽  
Nicholas M. Odhiambo
Keyword(s):  
Economic Growth ◽  
Public Debt ◽  
Time Series Data ◽  
Policy Formulation ◽  
Debt Service ◽  
Series Data ◽  
Long Run ◽  
Short Run ◽  
The Impact

Abstract This paper contributes to the ongoing debate on the impact of public debt service on economic growth; and it provides an evidence-based approach to public policy formulation in Zimbabwe. The empirical analysis was performed by applying the autoregressive distributed lag (ARDL) technique to annual time-series data from 1970 to 2017. The study findings reveal that the impact of public debt service on economic growth in Zimbabwe is negative in the short run but positive in the long run. The results are suggestive of the existence of a crowding-out effect of public debt service in Zimbabwe in the short run and a crowding-in effect in the long run. In view of these findings, the government should consider fiscal and financial policies that promote a constant supply of long-term finance, long-term fixed investments, and extension of a government securities maturity structure so as to ensure sustainable short- and long-term public debt service expenditures. The study further recommends the strengthening of non-distortionary revenue mobilisation reforms to reduce market distortions and boost domestic investment.

scholarly journals Effect of Unemployment Rate on Growth Rate of Gross Domestic Product of Jordan

2019 ◽  
Vol 10 (3) ◽  
pp. 217 ◽  
Author(s):  
Khaled Abdalla Moh'd AL-Tamimi
Keyword(s):  
Economic Growth ◽  
Growth Rate ◽  
Labor Force ◽  
Unemployment Rate ◽  
Ordinary Least Squares ◽  
Total Labor Force ◽  
Independent Variable ◽  
Total Labor ◽  
Level Of Significance ◽  
Yearly Data

This study explains the effect of unemployment rate on growth rate of GDP of Jordan by depending on yearly data for the period (2009 – 2016) as unemployment rate is independent variable, and growth rate of GDP (Avariable of economic growth) as a dependent variable. This study focuses on explaining the literature both in theoretical and empirical ways of the effect of unemployment rate on growth rate of GDP, and analyzing the effect of unemployment rate on growth rate of GDP of Jordan by depending on yearly data for the period (2009 – 2016) by using the technique of ordinary least squares in version of E-views. This paper found that there are insignificant impacts of unemployment percentage to total labor force, unemployment of males percentage to male labor force, unemployment of females percentage to female labor force on growth rate of GDP of Jordan by relying on yearly data for the period 2009 to 2016 at level of significance 5%. This paper recommends testing the impacts of other obstacles in Jordan on growth rate on GDP, in order to know the variables that effect growth rate of GDP in Jordan.

scholarly journals EFFECT OF EXTERNAL DEBT LIABILITY ON ECONOMIC GROWTH IN KENYA

2021 ◽  
Vol 6 (1) ◽  
pp. 23-42
Author(s):  
Joshua Matanda ◽  
Samuel Mbalu
Keyword(s):  
Economic Growth ◽  
Time Series ◽  
World Bank ◽  
Public Debt ◽  
External Debt ◽  
Debt Service ◽  
Series Data ◽  
National Bureau ◽  
Private Debt ◽  
Independent Variables

Purpose: The purpose of the study was to evaluate the effect of external debt liability on economic growth in Kenya. Materials and Methods: The descriptive research design was adopted. The target population was three institutions: The National Treasury, Kenya National Bureau of Statistics, and the World Bank. The study used time series data. The designated sample for this study covered a period of 43 years (1977–2019). Secondary data was used in this study. The data collected was on GDP of Kenya between 1977 and 2019, External public debt in terms of US dollars from 1977 to 2019, External private debt from 1977 and 2019 and external debt service payments from 1977 to 2019, all in US dollars. A data collection sheet was used to collect the data on the four variables. World Bank and World Development Indicator economic Meta data and published data by Central Bank of Kenya and the Kenya National Bureau of Statistics were the source of data for this study. The study used Eviews version 10 for analyzing and presenting study findings. The study employed multivariate time series and panel data regression analysis. The model employed GDP as a measure of economic growth and external public debt, external private debt, and external debt service payment as its main independent variables. Results:  The study found out that only the external private debt and the debt service payment showed bilateral causal relationship. External public debt and external private debt had a positive and significant effect on the GDP, indicating that external debt promotes economic growth in Kenya. The external debt service payment showed a negative and a significant effect on the GDP as well. The model explained 97% variability of the GDP as explained by the three independent variables combined. The 3% is attributed to other factors, not included in this study. Unique contribution to theory, practice and policy: The study recommends a more robust multivariate model to be employed to include more macro-economic variables to explain economic growth. A decade-to-decade comparison can also be done to compare the effects of the external debt on Kenyan economic growth in different time intervals. Fiscal and monetary policies should be reviewed to encourage more domestic and foreign investments and discourage external borrowing to fund budget deficits or projects with low or no returns.

scholarly journals Impact of Industrial Hollowing on Regional Economic Growth Rate: An Empirical Analysis based on Shanghai’s Data

2018 ◽  
Vol 14 (22) ◽  
pp. 223
Author(s):  
Yajie Bai ◽  
Maoguo Wu
Keyword(s):  
Economic Growth ◽  
Growth Rate ◽  
Time Series Data ◽  
Negative Impact ◽  
Empirical Test ◽  
Ordinary Least Squares ◽  
Series Data ◽  
Producer Price ◽  
Economic Growth Rate ◽  
Labor Resources

The relation between industrial hollowing-out and Shanghai’s economic growth rate was analyzed by using ordinary least squares and ECM regression model. Data used in the empirical test was a monthly time series data from January 2003 to February 2017. Empirical results show Industrial producer price index, and the total amount of imports has a positive relationship with economic growth rate. However, fixed asset investment, land use cost, and labor resources cost have a negative impact on economic growth rate.

scholarly journals The Nexus between Agricultural Productivity, Oil Prices, Economic Growth, and Financial Development in the USA

2021 ◽  
Vol 7 (1) ◽  
pp. 117-136
Author(s):  
Turgut Tursoy ◽  
Andrea Simbarashe Rabson
Keyword(s):  
Economic Growth ◽  
Financial Crisis ◽  
Financial Development ◽  
Financial Stability ◽  
Structural Break ◽  
Agricultural Productivity ◽  
Oil Prices ◽  
Policy Implications ◽  
Series Data ◽  
Positive Effects

Purpose. The study aims to examine the nexus between agricultural productivity by connecting oil prices, economic growth, and financial development. Design/Methodology/Approach. A newly formulated ARDL model was used to estimate an agricultural productivity nexus model using annual time-series data from 1962 to 2016. Innovation and additive structural break unit root tests were applied to determine the existence of unit roots, and the results reaffirmed that all the variables were stationary at first difference. The Chow Breakpoint test was applied to confirm a structural break in the year 2008 caused by the effects of the 2008 financial crisis. Findings and Implications. The results depicted a long-run relationship linking agricultural productivity, oil prices, economic growth, financial development and a financial crisis. The results also showed that financial development and economic growth have positive effects on agricultural productivity. The empirical findings further suggested that an increase in oil prices and the prevalence of a financial crisis have severe adverse effects on agricultural productivity. Originality. The study provides a novel viewpoint of agricultural productivity by connecting oil prices, economic growth, and financial stability and development. The study successfully demonstrated that the financial sector and oil price stability are pivotal for enhancing agricultural productivity initiatives. This study highlights the policy implications of the estimated results for policymakers seeking to boost agricultural productivity by addressing economic misfortunes induced by oil shocks and a financial crisis.

scholarly journals Decomposition of Economic Growth in Sri Lanka: Deep Look into the Service Sector

2018 ◽  
Vol 10 (3) ◽  
pp. 1416-1422
Author(s):  
Pivithuru Janak Kumarasinghe ◽  
M P M D Sandaruwan
Keyword(s):  
Economic Growth ◽  
Growth Rate ◽  
Sri Lanka ◽  
Service Sector ◽  
Time Series Data ◽  
Series Data ◽  
Specific Service ◽  
Policy Makers ◽  
Research Findings ◽  
Per Capita

The service sector gives the highest contribution to the economic growth of the country and it is about more than 50. Therefore service sector give the highest contribution for the economic growth in Srilanka. Through this research the service sector is decomposed. This empirical study was to measuring the contribution for the economic growth in Sri Lanka by service sector. Time series data is used to identify the decomposition of economic growth in Sri Lanka by Service. Annually data is collected from 2006 to 2014. This study mainly focused on growth decomposition methodology developed by Ivanov and Webster and this methodology used to decompose economic growth in Sri Lanka by service sector. This model presents an approach that is general and it can be applied to other countries. The methodology identifies the direct impacts of specific service sector components on the per capita growth of real gross domestic product. The study found that each service sector components in this analysis has a very different contribution to the growth rate in the economy. The research findings would provide guidance to the policy makers to develop policies, procedures, programs and standards.

INNOVATION AND ECONOMIC GROWTH: A CASE OF INDIA

2017 ◽  
Vol 5 (2) ◽  
pp. 64 ◽  
Author(s):  
Sushma Shukla
Keyword(s):  
Economic Growth ◽  
Growth Rate ◽  
Sustainable Growth ◽  
Series Data ◽  
Original Research ◽  
Education Spending ◽  
Indian Economy ◽  
Goods And Services ◽  
Patent Applications

PURPOSEInnovation is often seen as one of a driving force for a sustainable long-term economic growth of any country. Indian economy is one of the fastest growing economies in this modern globalization world.  Indian economy is enjoying the average economic growth of 7% from last two decades but is this economic growth sustainable or only some short-term phenomena because of increasing consumer market and increasing information sector. To achieve long-term sustainable growth Innovation is very important. The purpose of this paper is to discover the role of innovation in the economic growth of India.METHODOLOGYThis paper defines innovation that includes both production of innovative goods and services, and the innovative process of producing goods and services.  World Bank’s data bank is the primary source of this study. Time series data has been used to study the variables. In this study to understand the economic growth, GDP growth Rate, GDP per capita growth Rate, and for Innovation R&D Expenditure, Education Spending rate, and Patent applications variables have been used.FINDINGSAccording to the result as Indian economy will grow economic it will decrease the R&D Exp, it will decrease the education spending, it will decrease the FDI, and it will also decrease the no of patent applications filed in India. This negative correlation raises the questions to the policy maker. These questions also open the door of future research in this field. SOCIAL/ PHYSICAL IMPLICATIONS OF STUDYThis study can provide some insights to the policy makers that can be helpful for the society in terms of efficient use of our resources.ORIGINALITY OF STUDYThis study is an original research

scholarly journals Public Debt Stock, Education-Centric Human Capital and Economic Growth in Nepal

2016 ◽  
pp. 76-104
Author(s):  
Madhav Prasad Dahal
Keyword(s):  
Economic Growth ◽  
Human Capital ◽  
Public Debt ◽  
Budget Deficit ◽  
Time Series Data ◽  
Empirical Literature ◽  
Series Data ◽  
Total Debt ◽  
Ardl Approach ◽  
Negative Effect

Government borrows from domestic and foreign sources to finance its budget deficit. There are theories and empirical evidence that suggests negative effect of government debt on economic growth. By applying the autoregressive distributive lag (ARDL) approach to co integration on time series data of Nepal spanning over 1975-2014 , this study finds positive and statistically significant effect of total public debt on the GDP of the country. This result contradicts majority of the existing empirical literature. For the positive result we resort to Keynesian view on the effect of public debt in the economy. The total debt-to-GDP ratio of Nepal shows a declining trend. This should have some policy considerations in the conduct of fiscal policy in Nepal. The contribution of education-centric human capital on GDP is found positive as predicted by theory.Economic Journal of Development Issues Vol. 17 & 18 No. 1-2 (2014) Combined Issue, Page: 76-104

scholarly journals Cyprus Economy in the Light of Debt Problem

2021 ◽  
Author(s):  
Ergin Akalpler
Keyword(s):  
Time Series Data ◽  
Wald Test ◽  
Government Expenditures ◽  
Series Data ◽  
Total Income ◽  
State Planning ◽  
Debt Problem ◽  
Gdp Growth Rate ◽  
Total Capital ◽  
Planning Office

Abstract The model created by using the independent variables of total income, total capital, total savings, government expenditures, and employment, which I think has a significant impact on the growth of the Cyprus economy, has been examined in the light of the debt problem. Annual time-series data from 1995Q to 2017Q were obtained from the Cyprus State Planning Office in Cyprus. Unrestricted VAR (Vector Autoregression) model was used to test the causal relationship of the variables considered. Empirical findings revealed that some variables such as Wald test results for 78 lags, respectively, affect the GDP growth rate together. In particular, it was observed that there are bidirectional influences between employment, government expenditures, total capital, and savings which are not estimated in former studies. In addition, total income and total savings coefficients have a unidirectional influence on employment. It has been observed that the expenditure and savings coefficients also affect the total income.

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