scholarly journals Capital Flight, Hard Mineral Resources Exports and Political Governance Crisis in the Central African Republic: How Far We have Learned?

2020 ◽  
Author(s):  
Thales Pacific Yapatake Kossele
Keyword(s):  
Central African Republic ◽  
Development Assistance ◽  
Mineral Resources ◽  
Official Development Assistance ◽  
Capital Flight ◽  
Distributed Lag ◽  
Long Run ◽  
Short Run ◽  
Strong Action ◽  
Political Governance

Abstract The Autoregressive Distributed Lag (ARDL) approach to cointegration is applied to examine the role of political governance crisis in the relationship between hard mineral resources exports particularly diamond, and gold and Capital flight in the Central African Republic over the period of 1978-2010. The results of short-run show that official development assistance, gross national expenditures have a negative and significant impact on capital flight while the interaction of political governance crisis and hard mineral resources, GDP per capita have a positive and significant effect with capital flight. Moreover, governance crisis, exports of hard mineral resources has a negative and insignificant impact on capital flight. The results of the long run show a negative and significant effect on governance crisis, official development assistance and gross of national expenditures. The interaction term between hard mineral resources and GDP growth have a positive and significant effect on capital flight. However, export of hard mineral resources exhibits a positive but insignificant effect on capital flight. Without strong action to stop and promote political governance stability and the implementation of appropriate reforms at institutional level in CAR’s hard minerals resources sector, success in the fight against capital flight is unlikely.

scholarly journals An Investigation of the Effects of the Official Development Assistance on GDP Per Capita in Pakistan

2019 ◽  
Vol IV (I) ◽  
pp. 233-239
Author(s):  
Muhammad Tariq ◽  
Muhammad Jehangir ◽  
Hussain Ali
Keyword(s):  
Development Assistance ◽  
Official Development Assistance ◽  
Gdp Per Capita ◽  
Correction Coefficient ◽  
Use Of Time ◽  
Long Run ◽  
Short Run ◽  
Development Support ◽  
Per Capita ◽  
Relationship Of

The paper investigates the influence of official development support on Pakistan GDP per capita making use of time series yearly data from 1991 to 1917. ADF has been used for examining the level of integration of the data. After that, ARDL has been used for discovering the short and long-run relationship of the official development assistance and the GDP per capita. The results uncover that official assistance relationship with GDP per capita became negative in the short run in addition to a long-run period. In similar manner inflation also became negatively significant in the short and long run. Additionally, lag GDP per capita is positively significant. Population growth turned positively significant in the long run. In addition, it has become negatively significant in the short-run period of time. Furthermore, the Error Correction coefficient is –0. 83% and remained significant

scholarly journals Capital Flight and Domestic Investment in Nigeria: Evidence From ARDL Methodology

2019 ◽  
Vol 11 (1) ◽  
pp. 348
Author(s):  
Lionel Effiom ◽  
Alfa Charles Achu ◽  
Samuel Etim Edet
Keyword(s):  
Cumulative Effect ◽  
Local Economy ◽  
Capital Flight ◽  
Domestic Investment ◽  
Distributed Lag ◽  
Long Run ◽  
Short Run ◽  
Auto Regressive ◽  
The Impact

Capital flight is a challenge for many developing countries of the world. The problem is more severe in a nation like Nigeria where domestic investment has been terribly affected. This study undertakes an empirical investigation of the impact of capital flight on domestic investment in Nigeria between 1980 and 2017. Deploying the Auto Regressive Distributed Lag (ARDL) econometric methodology, the study finds that capital flight has negative and significant impact on domestic investment. In particular, the long run impact of capital flight on domestic investment (0.57) turns out to be more severe than its impact in the short run (0.27), implying that a continuous and persistent build-up of capital flight exerts a negative cumulative effect on domestic investment over time. The study further reveals that the quality of institutions in Nigeria is a disincentive to domestic investment. It therefore recommends the strengthening of institutions to rein in on the illegal outflow of capital from the Nigerian economy in order to guarantee the availability of investible funds. The real sector of the local economy must be grown to bolster the value of the naira. This will stem the tide of capital flight and attract investments into critical sectors.

scholarly journals Determinants of Capital Flight In Ghana

2017 ◽  
Vol 7 (2017) ◽  
pp. 104-126
Author(s):  
Richmond Forson ◽  
Camara Kwesi Obeng ◽  
William Gabriel Brafu-Insaidoo
Keyword(s):  
Interest Rate ◽  
Interest Rates ◽  
Financial Development ◽  
Good Governance ◽  
External Debt ◽  
Capital Flight ◽  
Distributed Lag ◽  
Long Run ◽  
Gdp Growth Rate ◽  
Short Run

The study investigated the short-run and long-run determinants of capital flight in Ghana using the auto-regressive distributed lag (ARDL) estimation technique. The long-run and short-run results show that real GDP growth rate, higher domestic real interest rate over foreign interest rate, financial development, good governance and strong property rights reduce capital flight, while external debt to GDP leads to increase in capital flight in Ghana. However, lagged external debt to GDP and lagged financial development had negative and positive effect respectively in the short-run. The study recommends that government should adopt more pro-growth policies and resort to domestic borrowing to reduce external debt. The Central Bank of Ghana should improve on the development of the financial sector and ensure competitive domestic interest rates. It is also recommended that Public Accounts Committee (PAC) in Ghana should continue to ensure accountability and transparency to strengthen the interest of domestic investors.

scholarly journals IMPACT OF OFFICIAL DEVELOPMENT ASSISTANCE ON SUSTAINABLE DEVELOPMENT OF PAKISTAN

2021 ◽  
pp. 11-21
Keyword(s):  
Time Series ◽  
Sustainable Development ◽  
Time Series Data ◽  
Development Assistance ◽  
Official Development Assistance ◽  
Foreign Assistance ◽  
Series Data ◽  
Distributed Lag ◽  
Long Run ◽  
Adf Test

This research paper aims to find out the relationship between Official Development Assistance and sustainable development in Pakistan. Time series data was taken for the period of 42 years (1976 -2017). Sustainable Development is a dependent variable for which proxy variable of Adjusted Net Savings has been deployed. ODA (% of GNI), Inflation, Per Capita GDP and Trade (GDP %) have been used as explanatory variables. Augmented Dickey-Fuller Test has been applied to examine the nature of the data as time series data may contain unit root problems. ADF test confirms mixed order of integration for the selected variables, hence Autoregressive Distributed Lag (ARDL) Approach was applied to find out the long-run relationship among the considered variables. Estimation of Error Correction Regression resulted in a significant long-run relationship between ODA and Sustainable Development. ECM Regression also signifies the negative and significant value of the speed of adjustment term confirming that the model is stable and convergent towards the equilibrium. Overall results of this study confirm a positive and highly significant relationship between ODA and the measure of sustainable development in Pakistan. Therefore it is recommended that attention should be given to drawing on foreign assistance and it should be subject to the transparent and efficient practices applied in the Aid Allocation. It significantly improves the overall welfare of Pakistan.

Natural Resource Rents-Capital Flight Nexus in Selected ECOWAS Countries: Evidence from Non-Linear ARDL Approach

2021 ◽  
Vol 10 (2) ◽  
pp. 81-97
Author(s):  
Abdulfatai A Adedeji ◽  
Sherifat W Kogbodoku
Keyword(s):  
Natural Resources ◽  
Natural Resource ◽  
Capital Flight ◽  
Asymmetric Effect ◽  
Distributed Lag ◽  
Resource Rents ◽  
Long Run ◽  
Short Run ◽  
Natural Resource Rents ◽  
Symmetric Effect

The challenge of capital flight in the ECOWAS sub-region is worrisome. Huge revenue from natural resources also contributes to the relocation of available resources necessary for the development of the region. The study identifies the revenue from natural resources as a key driver of capital flight in the region. Hence, this study analyzed the effect of natural resource rents on capital flight in ECOWAS countries accounting for the role of asymmetry. Also, the study employed the nonlinear autoregressive distributed lag (NARDL) model to account for short-run and long-run asymmetries. The results revealed the presence of asymmetry in five countries, while two countries displayed symmetric effects. It also showed that the symmetric effect of natural resource rents on capital flight is weak for Guinea and Nigeria in the short-run while the long-run effect is not more pronounced for Nigeria. In the case of asymmetric effect, natural resource rents amplified capital flight in Cape Verde and Sierra Leone. Further evidence shows that the non-linearity of natural resource rents does not encourage capital flight in Burkina Faso, Cote d’Ivoire, and Ghana. Hence, the countries should promote transparency and accountability in the management of proceeds from natural resources to enhance development in the region.

scholarly journals Effect of natural resources extraction on energy consumption and carbon dioxide emission in Ghana

2020 ◽  
Vol 14 (1) ◽  
pp. 20-39 ◽  
Author(s):  
Paul Adjei Kwakwa ◽  
Hamdiyah Alhassan ◽  
George Adu
Keyword(s):  
Carbon Dioxide ◽  
Energy Consumption ◽  
Natural Resources ◽  
Development Assistance ◽  
Carbon Dioxide Emission ◽  
Official Development Assistance ◽  
Content Type ◽  
Long Run ◽  
Short Run ◽  
Increase Energy Consumption

Purpose Even though many studies have attempted to understand the drivers of carbon dioxide emission and energy consumption to help tackle environmental issues, not much has been done to estimate the effect of natural resources extraction on these two variables. This paper aims to analyze the long-run and short-run carbon dioxide emission and energy consumption effect of natural resources extraction in Ghana. Design/methodology/approach The theoretical foundation for this study is the Stochastic Impacts Regression on Population, Affluence and Technology (STIRPAT) model. Secondary Data sourced from World Development Indicators (2018) for the period of 1971-2013 were used. Estimation was done by using the autoregressive distributed lag. Findings It was found among other things that urbanization, and extraction of natural resources contribute to Ghana’s carbon dioxide emission, while official development assistance helps in reducing carbon dioxide emission in the long run. Again, while income and extraction of natural resources increase energy consumption, urbanization and official development assistance reduce environmental degradation in the long run. Regarding the short run, income and urbanization both increase energy consumption and carbon dioxide emission; trade openness and official development assistance decrease both carbon dioxide emission and energy consumption. Research limitations/implications The implications from the results include the need to strictly enforce laws regulating extractive activities in the country to ensure a safe environment; and also to raise tariff and non-tariff barriers on products that do not promote a friendly environment and vice versa. Originality/value The effect of natural resources extraction on carbon emission and energy consumption is examined.

scholarly journals Mobile Money Use: The Impact of Macroeconomic Policy and Regulation

Economies ◽  
2021 ◽  
Vol 9 (2) ◽  
pp. 51
Author(s):  
Lorna Katusiime
Keyword(s):  
Exchange Rate ◽  
Interest Rates ◽  
Financial Innovation ◽  
Macroeconomic Policy ◽  
Mobile Money ◽  
Distributed Lag ◽  
Distributed Lag Model ◽  
Long Run ◽  
Short Run ◽  
The Impact

This paper examines the effects of macroeconomic policy and regulatory environment on mobile money usage. Specifically, we develop an autoregressive distributed lag model to investigate the effect of key macroeconomic variables and mobile money tax on mobile money usage in Uganda. Using monthly data spanning the period March 2009 to September 2020, we find that in the short run, mobile money usage is positively affected by inflation while financial innovation, exchange rate, interest rates and mobile money tax negatively affect mobile money usage in Uganda. In the long run, mobile money usage is positively affected by economic activity, inflation and the COVID-19 pandemic crisis while mobile money customer balances, interest rate, exchange rate, financial innovation and mobile money tax negatively affect mobile money usage.

Fish Exports and Economic Growth: The Pakistan’s Experience

2019 ◽  
Vol 20 (2) ◽  
pp. 279-296 ◽  
Author(s):  
Syed Tehseen Jawaid ◽  
Mohammad Haris Siddiqui ◽  
Zeeshan Atiq ◽  
Usman Azhar
Keyword(s):  
Economic Growth ◽  
Time Series Data ◽  
Positive Impact ◽  
Impulse Response Function ◽  
Policy Implications ◽  
Sensitivity Analyses ◽  
Series Data ◽  
Distributed Lag ◽  
Long Run ◽  
Short Run

This study attempts to explore first time ever the relationship between fish exports and economic growth of Pakistan by employing annual time series data for the period 1974–2013. Autoregressive distributed lag and Johansen and Juselius cointegration results confirm the existence of a positive long-run relationship among the variables. Further, the error correction model reveals that no immediate or short-run relationship exists between fish exports and economic growth. Different sensitivity analyses indicate that initial results are robust. Rolling window analysis has been applied to identify the yearly behaviour of fish exports, and it remains negative from 1979 to 1982, 1984 to 1988, 1993 to 1999, 2004 and from 2010 to 2013, and it shows positive impact from 1989 to 1992, 2000 to 2003 and from 2005 to 2009. Furthermore, the variance decomposition method and impulse response function suggest the bidirectional causal relationship between fish exports and economic growth. The findings are beneficial for policymakers in the area of export planning. This study also provides some policy implications in the final section.

scholarly journals Determinants of Insurance Penetration in West African Countries: A Panel Auto Regressive Distributed Lag Approach

2021 ◽  
Vol 14 (8) ◽  
pp. 350
Author(s):  
Odunayo Olarewaju ◽  
Thabiso Msomi
Keyword(s):  
Banking Sector ◽  
West African ◽  
Education Sector ◽  
African Countries ◽  
Distributed Lag ◽  
Long Run ◽  
Short Run ◽  
Auto Regressive ◽  
Insurance Penetration ◽  
The Government

This study analyses the long- and short-term dynamics of the determinants of insurance penetration for the period 1999Q1 to 2019Q4 in 15 West African countries. The panel auto regressive distributed lag model was used on the quarterly data gathered. A cointegrating and short-run momentous connection was discovered between insurance penetration along with the independent variables, which were education, productivity, dependency, inflation and income. The error correction term’s significance and negative sign demonstrate that all variables are heading towards long-run equilibrium at a moderate speed of 56.4%. This further affirms that education, productivity, dependency, inflation and income determine insurance penetration in West Africa in the long run. In addition, the short-run causality revealed that all the pairs of regressors could jointly cause insurance penetration. The findings of this study recommend that the economy-wide policies by the government and the regulators of insurance markets in these economies should be informed by these significant factors. The restructuring of the education sector to ensure finance-related modules cut across every faculty in the higher education sector is also recommended. Furthermore, Bancassurance is also recommended to boost the easy penetration of the insurance sector using the relationship with the banking sector as a pathway.

The relationship between financial development and economic growth in Eswatini (formerly Swaziland)

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Siphe-okuhle Fakudze ◽  
Asrat Tsegaye ◽  
Kin Sibanda
Keyword(s):  
Economic Growth ◽  
Granger Causality ◽  
Financial Development ◽  
Granger Causality Test ◽  
Causality Test ◽  
Content Type ◽  
Distributed Lag ◽  
Long Run ◽  
Short Run ◽  
The Relationship

PurposeThe paper examined the relationship between financial development and economic growth for the period 1996 to 2018 in Eswatini.Design/methodology/approachThe Autoregressive Distributed Lag bounds test (ARDL) was employed to determine the long-run and short-run dynamics of the link between the variables of interest. The Granger causality test was also performed to establish the direction of causality between financial development and economic growth.FindingsThe ARDL results revealed that there is a long-run relationship between financial development and economic growth. The Granger causality test revealed bidirectional causality between money supply and economic growth, and unidirectional causality running from economic growth to financial development. The results highlight that economic growth exerts a positive and significant influence on financial development, validating the demand following hypothesis in Eswatini.Practical implicationsPolicymakers should formulate policies that aims to engineer more economic growth. The policies should strike a balance between deploying funds necessary to stimulate investment and enhancing productivity in order to enliven economic growth in Eswatini.Originality/valueThe study investigates the finance-growth linkage using time series analysis. It determines the long-run and short-run dynamics of this relationship and examines the Granger causality outcomes.

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