scholarly journals Dynamic Effects of Foreign Portfolio Investment on Economic Growth in Nigeria

2020 ◽  
Vol 4 (3) ◽  
pp. 5-12
Author(s):  
O.W. Toyin ◽  
Ad. E. Oludayol
Keyword(s):  
Economic Growth ◽  
Gross Domestic Product ◽  
Foreign Investment ◽  
Domestic Product ◽  
Distributed Model ◽  
Short Term ◽  
Foreign Portfolio Investment ◽  
Domestic Savings ◽  
The Relationship

The slow growth rate and the deficit of full-fledged financial security have created the preconditions for studying the relationship between foreign investment and economic growth. In previous literature, key emphases on this issue were studied in the short term and in terms of static functioning of the economy. Thus, this article purposely studied the dynamic nature of the development of the relationship between foreign investment and economic growth in Nigeria from 1980 to 2018. The use of the Augmented-Dickey Fuller test confirmed the precondition for adopting dynamic techniques to test the significant role of foreign portfolio investment (among other analyzed factors – domestic savings, government capital expenditures, market capitalization) in the formation of gross domestic product. The use of the lag selection method allowed to determine the optimal lag for estimating the autoregressive distributed model, which substantiates the effectiveness and reliability of the autoregressive distributed lag model. The information base of the study was the statistical bulletin of the Central Bank of Nigeria. The results of empirical estimations in the short term showed that domestic savings had significant and negative impact on gross domestic product. The study empirically confirms and theoretically proves that foreign investment, domestic savings, government spending and market capitalization determine long-term trends in gross domestic product formation in Nigeria. Practically, the empirical result revealed that the presence of a significant deficit of domestic savings in Nigeria creates obstacles to successful economic growth in the country both in the short and long term; portfolio foreign investment accelerates economic growth in the long run to a greater extent than in the short run. Keywords: autoregressive distributed model, Dickie-Fuller test, economic growth, foreign investment, double gap theory.

scholarly journals An Empirical Analysis of the Link between Economic Growth and Exports in Côte d’Ivoire

2019 ◽  
Vol 12 (9) ◽  
pp. 94
Author(s):  
Daouda Coulibaly ◽  
Fulgence Zran Goueu
Keyword(s):  
Economic Growth ◽  
Gross Domestic Product ◽  
Causal Relationship ◽  
Empirical Analysis ◽  
Annual Data ◽  
Short Term ◽  
Causality Test ◽  
Long Run ◽  
The Relationship

This paper aims to analyze the relationship between exports and economic growth in Côte d’Ivoire. In order to achieve this objective, annual data for the period 1960-2017 were tested by using the cointegration approach of Pesaran, Shin and Smith, including the causality test of Breitung and Schreiber. According to our analysis it is only exports that drive economic growth and not the opposite. Exports act positively and significantly on economic growth in the short term as well as in the long term. The causality test of Breitung and schreiber indicates a one-way long-run causal relationship ranging from exports to gross domestic product (GDP). All those results show that exports are a source of Ivorian economic growth.

scholarly journals Examining the Export-led Growth Hypothesis: The case of Croatia

2015 ◽  
Vol 61 (3) ◽  
pp. 22-31 ◽  
Author(s):  
Vlatka Bilas ◽  
Mile Bošnjak ◽  
Sanja Franc
Keyword(s):  
Gross Domestic Product ◽  
Equilibrium State ◽  
Granger Causality ◽  
Domestic Product ◽  
Short Term ◽  
Goods And Services ◽  
Subsequent Period ◽  
The Relationship ◽  
Growth Hypothesis

Abstract This paper examines the relationship between gross domestic product and exports of goods and services in Croatia between 1996 and 2012. The research results confirmed unidirectional Granger causality from the exports of goods and services to gross domestic product. Following the Engle-Granger approach to cointegration, long-term equilibrium as well as short-term correlation between the observed variables was identified. Exports of goods and services and gross domestic product (GDP) in Croatia move together. If the two observed variables move away from equilibrium, they will return to their long-term equilibrium state at a velocity of 24.46% in the subsequent period. In accordance with the results, we found evidence supporting the export-led growth hypothesis in Croatia. As the outcomes indicated, to recover the economy, Croatia should put more emphasis on the development of exporting sectors.

scholarly journals Austerity in Time of Crisis: A Solution or a Dangerous Idea? Evidence from Algeria

ETIKONOMI ◽  
2018 ◽  
Vol 17 (1) ◽  
pp. 11-24
Author(s):  
Hadjer Boulila ◽  
Mohamed Benbouziane
Keyword(s):  
Economic Growth ◽  
Gross Domestic Product ◽  
Domestic Product ◽  
Distributed Model ◽  
Non Linear ◽  
Oil Crisis

Our study is aimed to investigate the effect of austerity measures on the economic growth. Besides that, this research wants to examine whether austerity is the solution of the current oil crisis in Algeria or not. To achieve this aim we have used a Non-Linear Autoregressive Lag Distributed model (NARDL) to illustrate the negative and positive changes in austerity measures and their effects on gross domestic product. The findings of our estimation provides that neither increasing taxes cuts nor reducing expenditures is a solution for the crisis, that what confirms empirically what Keynesian economists approve. Therefore, Algeria’s authorities must quickly find other solution rather than austerity policies.DOI: 10.15408/etk.v17i1.6799

The Causal Links Between Foreign Direct Investment And Economic Growth In Pakistan

2012 ◽  
Vol 6 ◽  
Author(s):  
Najid Ahmad ◽  
Muhammad Farhat Hayat ◽  
Muhammad Luqman ◽  
Shafqat Ullah
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Gross Domestic Product ◽  
Direct Investment ◽  
Domestic Product ◽  
Correction Model ◽  
Economic Progress ◽  
Long Run ◽  
Domestic Capital ◽  
The Relationship

This paper investigates the relationship between foreign direct investment and economic growth in Pakistan. The co-integration and error correction model is used to show the relationship between foreign direct investment and gross domestic product in Pakistan. Gross domestic product is taken as dependent variable while foreign direct investment, labor force and domestic capital as independent variables. The results suggest that there is a positive relation between foreign direct investment and gross domestic product in short as well as long run. If we want to make economic progress then there is a need to invite foreign investors because foreign direct investment increases GDP that is economic growth.

scholarly journals Impact of Domestic Industrial Output on Economic Growth in Nigeria

2021 ◽  
Vol 2 (1) ◽  
pp. 57-67
Author(s):  
Kazeem Fasoye ◽  
Abiodun Sunday Olayiwola ◽  
Kehinde Elizabeth Joseph
Keyword(s):  
Economic Growth ◽  
Gross Domestic Product ◽  
Practical Implication ◽  
Industrial Sector ◽  
Domestic Product ◽  
Industrial Output ◽  
Domestic Production ◽  
Real Gross Domestic Product ◽  
Distributed Lag ◽  
Domestic Savings

Purpose: This paper examined the potential of domestic industrial output on economic growth in Nigeria. Approach/ Methodology/ Design: An Autoregressive Distributed Lag (ARDL) model procedure was employed for data analysis. Findings: The results revealed that the contribution of the domestic industrial output to economic growth was appalling which was necessitated by the worrisome image of “Made-in-Nigeria” goods. It was also showed that the results that domestic industrial output and domestic savings have positive relationships with real gross domestic product (RGDP) in the long run. This implies that a rise in the level of each of domestic output and domestic savings necessitated an increase in real gross domestic product (RGDP). Practical Implication: The implication presented in this study is related to the concerned authorities. The results indicate the need for diverse domestic production in order to achieve a healthy competition in the industrial sector in the country. Originality/Value: The study innovates by employing various statistical tools for exploring the effect of domestic industrial output on economic growth. The significant contribution of this study is in identifying that domestic production in Nigeria has been lagged behind in terms of output performance in the economy.

scholarly journals A tale of five stories: Defence spending and economic growth in NATO´s countries

PLoS ONE ◽  
2021 ◽  
Vol 16 (1) ◽  
pp. e0245260
Author(s):  
Paula Gómez-Trueba Santamaría ◽  
Alfredo Arahuetes García ◽  
Tomás Curto González
Keyword(s):  
Economic Growth ◽  
Gross Domestic Product ◽  
Domestic Product ◽  
Defence Spending ◽  
The Relationship ◽  
Defence Expenditure

This article examines the relationship between defence expenditure and its impact on the growth of NATO’s countries between 2005 and 2018. The aim is to determine if this relation exists and to test if it is possible to discover different models across the countries. The results obtained using the Arellano–Bond estimator, suggest that there is more than one model, and confirm, through the poolability test, the existence of five different groups of countries within the Alliance, with different impacts of the defence expenditure on their gross domestic product. These findings are in line with the review of existing literature that reveals heterogeneity in the results due to different parameters used.

scholarly journals Indicators of the association of Unemployment in Indonesia with the Level of Employment Opportunity, GDP, and SER

2021 ◽  
Vol 1 (5) ◽  
pp. 189-206
Author(s):  
Diesta Pambayun
Keyword(s):  
Economic Growth ◽  
Gross Domestic Product ◽  
Time Series Data ◽  
School Enrollment ◽  
Domestic Product ◽  
Series Data ◽  
Employment Opportunities ◽  
Unequal Distribution ◽  
Negative Effect

Population inequality and the unequal distribution of income are indicators of unemployment in Indonesia, while unemployment plays an important role in economic growth. The increase in Gross Domestic Product (GDP) means that the level of public welfare improves in direct proportion to the gross domestic product (GDP) which is used as a measuring tool for economic conditions. School Enrollment Rates (SER) and employment opportunities are also identified as having an effect on economic growth, so it is important to conduct research using the ECM method using time series data for 1990-2019 sourced from the Central Statistics Agency (CSA). Based on the results of data processing, it can be seen that in the short and long term employment opportunities and GDP have a positive effect on unemployment. However, in the long term GDP and SER have no significant negative effect on unemployment.

scholarly journals Analysis of The Effect of Gross Domestic Product, Exchange Rate, and Inflation on Balance of Payments in Indonesia

2019 ◽  
Vol 6 (10) ◽  
pp. 361-374
Author(s):  
Muammar Rinaldi ◽  
Shinta Arida Hutagalung ◽  
Muhammad Fitri Rahmadana
Keyword(s):  
Exchange Rate ◽  
Gross Domestic Product ◽  
Error Correction ◽  
Balance Of Payments ◽  
Domestic Product ◽  
Short Term ◽  
Independent Variables ◽  
Distributed Lag ◽  
The Exchange Rate

This study aims to analyze the effect of the short and long term gross domestic product, exchange rate, and inflation on Indonesia's balance of payments. The data used in this study are secondary data which is obtained indirectly with the period of 1995 to 2015. Data sources were obtained from Bank Indonesia and the Central Bureau of Statistics. The data collection method used in this study with the indirect method is documentation through recording or copying data from Bank Indonesia and the Central Bureau of Statistics. The analysis model used is Error Correction Mechanism (ECM). The results of this study indicate that the regression model of the Autoregressive Distributed Lag Model (ARDL) for the long term and Error Correction Model (ECM) regarding the effect of independent variables such as Interest Rates, Gross Domestic Product and Inflation Against the Dependent dependent variable in Indonesia, then it can some conclusions are presented, namely from several independent variables that are tried and included in the savings equation in Indonesia using the Autoregressive Distributed Lag Model (ARDL) for the long term and Error Correction Model (ECM) for the short term, namely the gross domestic product variable, the inflation rate, and exchange rate. In the long run there are 2 (two) significant variables, namely gross domestic product and the exchange rate. While inflation is not significant. For the short term, there is 1 (one) significant variable, namely the exchange rate. Thus, only exchange rate variables are significant in both the short and long term. With only 1 (one) significant independent variable both in the long term and short term, it can be concluded that the exchange rate in the long term and short term is the main determining factor that affects the Balance of Payments in Indonesia. In the long run, Independent variables such as Gross Domestic Product and the exchange rate on the dependent variable Balance of Payments in Indonesia have a significant effect on the dependent variable Balance of Payments. Whereas in the short run, the exchange rate variable has a significant effect, and for other independent variables such as the GDP variable and the inflation rate does not have a significant effect.

scholarly journals Using a Standard Model to Identify the Saving Determinants in the Kingdom of Saudi Arabia

2021 ◽  
pp. 32-41
Author(s):  
Tarek Ali Ahmed Abdallah ◽  
Mohammed Salah El-Din Abdel Aziz
Keyword(s):  
Economic Growth ◽  
Saudi Arabia ◽  
Gross Domestic Product ◽  
Growth Rates ◽  
Domestic Product ◽  
Positive Interaction ◽  
Factors Affecting ◽  
Coverage Ratio ◽  
Domestic Savings ◽  
Economic Growth Rates

Low savings are an important factor in low economic growth rates. Saudi Arabia faces many future challenges, e.g., maintaining the gross domestic product, improving economic growth rates, providing job opportunities, as well as decreasing unemployment and nationalization rates. Therefore, the present research paper aims to identify the most important factors affecting domestic savings in Saudi Arabia by building a simultaneous equations model to measure interactions and interrelations between variables using 3SLS. The results showed a significant positive interaction between variables. Increasing domestic savings by 1% increased local investment by 0.957%, whereas increasing the investment coverage ratio by 1% increased local investment by 0.971%. Moreover, increasing local investment by 1% increased gross domestic product by 0.136%, while decreasing the rate by 1% increased gross domestic product by 0.334%. Increasing population by 1% increased gross domestic product by 1.520%. In short, these factors conveyed high rates of response.

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