Political Booms, Currency Crises and Economic Growth

2020 ◽  
Author(s):  
Can Sever
Keyword(s):  
Economic Growth ◽  
Currency Crises

Influence of systemic banking crisis and currency crisis on the relationship of export and economic growth

2017 ◽  
Vol 10 (1) ◽  
pp. 82-110
Author(s):  
Syed Ali Raza ◽  
Mohd Zaini Abd Karim
Keyword(s):  
Economic Growth ◽  
Time Series ◽  
Financial Crises ◽  
Currency Crises ◽  
Time Series Data ◽  
Banking Crises ◽  
Series Data ◽  
Content Type ◽  
Relationship Of ◽  
The Relationship

Purpose This study aims to investigate the influence of systemic banking crises, currency crises and global financial crisis on the relationship between export and economic growth in China by using the annual time series data from the period of 1972 to 2014. Design/methodology/approach The Johansen and Jeuuselius’ cointegration, auto regressive distributed lag bound testing cointegration, Gregory and Hansen’s cointegration and pooled ordinary least square techniques with error correction model have been used. Findings Results indicate the positive and significant effect of export of goods and services on economic growth in both long and short run, whereas the negative influence of systemic banking crises and currency crises over economic growth is observed. It is also concluded that the impact of export of goods and service on economic growth becomes insignificant in the presence of systemic banking crises and currency crises. The currency crises effect the influence of export on economic growth to a higher extent compared to systemic banking crises. Surprisingly, the export in the period of global financial crises has a positive and significant influence over economic growth in China, which conclude that the global financial crises did not drastically affect the export-growth nexus. Originality/value This paper makes a unique contribution to the literature with reference to China, being a pioneering attempt to investigate the effects of systemic banking crises and currency crises on the relationship of export and economic growth by using long-time series data and applying more rigorous econometric techniques.

scholarly journals Currency Crises and Growth

2018 ◽  
Vol 10 (3) ◽  
pp. 83
Author(s):  
Arafat Hamida
Keyword(s):  
Economic Growth ◽  
Data Model ◽  
Currency Crises ◽  
Dynamic Panel Data ◽  
Impulse Response Functions ◽  
Response Functions ◽  
Short Term ◽  
Dynamic Panel ◽  
Dynamic Panel Data Model ◽  
Negative Effect

The purpose of this research is to study the effect of currency crises on economic growth. To do this, we opted for a dynamic panel data model and impulse response functions for a sample of seventeen emerging countries over a period from 1980 to 2014. The main results of the various empirical investigations show that there is a Negative effect of currency crises on short-term economic growth.

scholarly journals The impact of currency crises on economic growth and foreign direct investment: The analysis of emerging and developing economies

2019 ◽  
Vol 5 (3) ◽  
pp. 220-250
Author(s):  
Nurilla Abdushukurov
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
Currency Crises ◽  
Developing Economies ◽  
Negative Impact ◽  
Generalized Method Of Moments ◽  
Common Belief ◽  
Emerging And Developing Countries ◽  
The Impact

In this paper, the discussion centers on the possible effects of currency crises on different economic indicators, with special attention to economic growth and foreign direct investment. There is insufficient research on this topic to draw any firm conclusions about the associations between currency crises and aforementioned variables. In fact, it appears that the impact of currency crises on economic growth and foreign direct investment is negative respectively. However, this study indicates that foreign direct investment can be positively correlated with currency crises as contrary to the common belief. The current study analyzes these relationships through dynamic panel models. The annual panel data for 71 emerging and developing countries are extracted from reliable databases for the time period of 2005–2014. Generalized method of moments estimators are used to obtain efficient and consistent results so as to reach necessary conclusions. The majority of estimated coefficients are significant and unbiased statistically, and also consistent with the economic theories proposed. The main results indicate that the presence of a currency crisis in a particular economy has a negative impact on economic growth, while its effect on foreign investment inflows is most likely positive. Robustness tests demonstrate that used models in the study are both economically and econometrically robust and valid.

The ‘Stop-Go’ Squeezes of the 1950s and 1960s

2017 ◽  
Author(s):  
Christopher Hood ◽  
Rozana Himaz
Keyword(s):  
Economic Growth ◽  
Welfare State ◽  
Currency Crises ◽  
Full Employment ◽  
Labour Government ◽  
The Core ◽  
The People ◽  
State Expenditure ◽  
State Growth ◽  
The 1960S

This chapter describes four fiscal squeezes across two decades marked by broadly full employment and no major recession, albeit with slow economic growth, recurring currency crises, and ‘stop-go’ policies to dampen consumer demand. The first squeeze in the mid-1950s reflected the Conservatives’ uphill struggle to deliver on their 1951 election promise to cut taxes and ‘set the people free’ against the background of currency weakness and the Korean and Cold Wars. Spending restraint in this era put the emphasis on cutting wartime legacy spending rather than checking the core drivers of welfare state growth. The subsequent three squeezes under Conservative and Labour Governments in the 1960s all put a heavier emphasis on revenue than spending to support welfare state expenditure and stabilize the currency, but the Wilson Labour Government made significant defence cuts in the late 1960s.

Influence of Systemic Banking Crises and Currency Crises on the FDI-Growth Nexus: Evidence from China

2018 ◽  
Vol 19 (3) ◽  
pp. 572-589 ◽  
Author(s):  
Syed Ali Raza ◽  
Mohd Zaini Abd Karim
Keyword(s):  
Economic Growth ◽  
Financial Crises ◽  
Currency Crises ◽  
Time Series Data ◽  
Global Financial Crisis ◽  
Structural Break ◽  
Banking Crises ◽  
Negative Influence ◽  
Series Data ◽  
The Impact

This study investigates the influence of systemic banking crises, currency crises and global financial crisis on the relationship of foreign direct investment (FDI) and economic growth in China by using the annual time series data from the period of 1982 to 2014. The Johansen and Juselius (J–J) cointegration, autoregressive distributed lag (ARDL) bound testing cointegration approach, and Gregory and Hansen’s (1996) cointegration approach with structural break confirm the valid long-run relationship between considered variables. Results indicate the positive and significant effect of FDI on economic growth. Whereas the negative influence of systemic banking crises and currency crises over economic growth is observed. It is also concluded that the impact of FDI on economic growth becomes insignificant in the presence of systemic banking crises and currency crises. The systemic banking crises effects the influence of export on economic growth more as compared to currency crises. Surprisingly, the export in the period of global financial crises has a positive and significant influence over economic growth in China, which conclude that the global financial crises did not drastically affect the export-growth nexus.

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