scholarly journals Fiscal policy and economic growth: Some evidence from Kosovo

2021 ◽  
Vol 10 (4) ◽  
pp. 130-136
Author(s):  
Bedri Hamza ◽  
Petraq Milo
Keyword(s):  
Economic Growth ◽  
Fiscal Policy ◽  
Public Expenditure ◽  
Time Series Data ◽  
Consumer Price Index ◽  
Unit Root Test ◽  
Series Data ◽  
Government Investment ◽  
Good Decision ◽  
The Impact

The main purpose of this study is to analyze the effects of fiscal policy on economic growth in the Republic of Kosovo for the time period from January 2006 to September 2018 in terms of their long-term and short-term relationships. The methods used are measured using the second data (monthly series) provided by the Department of Finance as the appropriate national institution. Kosovo as one of the Balkan countries is facing the same problems as other labor countries. This study will contribute greatly to analyzing the impact of fiscal policy and will help policymakers come up with good decision-making. The econometric vector autoregression (VAR) model used in this study uses total public expenditure, total public income, fixed income structure, and consumer price index as independent variables and gross domestic product (GDP) as a dependent variable. In addition, in order of consistency time-series data were evaluated by the augmented Dickey-Fuller unit root test. The study concludes that total public expenditure significantly affects GDP; on the other hand, the total public income has a positive but visible impact on GDP, which means that the impact of government investment is more pronounced on financial development compared to public revenue; and increased demand for co-operation has decreased in monetary terms (World Bank, 2021). It is possible that government spending and structure may be related to key development quality ideas, such as the segregation of wages and environmental support (Halkos & Paizanos, 2015).

scholarly journals Public Expenditure in Nepal: A Case of Transportation Sector

2021 ◽  
Vol 30 (1) ◽  
pp. 24-36
Author(s):  
Narayan Prasad Ghimire
Keyword(s):  
Economic Growth ◽  
Gross Domestic Product ◽  
Public Expenditure ◽  
Time Series Data ◽  
Capital Expenditure ◽  
Domestic Product ◽  
Series Data ◽  
Government Investment ◽  
Transportation Sector ◽  
The Government

The rapid growth in public investment in various sectors was assumed after decades of conflict and an unstable political situation. With the declaration of the Federal Republic, Nepal is going to embark on accelerated economic growth. This has somewhat caused concerns among policymakers of its implication for economic growth. And the government investment in transportation infrastructure is one of the core strategies, called the ‘infrastructure of infrastructures’. The main aim of this study is, therefore, to explain the relationship between economic growth and public expenditure in the transportation sector in Nepal. Primarily, this study has focused on the distinction of expenditures in the five-year development plans in three systems (Panchayat, Democratic, and Republic). This study used time series data collected between 1975 and 2016. The statistical and econometric tools have been used for the study. The result shows that the trend of government investment on public expenditure has increased in the Republic system. This study reveals that the variables are stationary on the first difference. The obtained regression model is satisfactory by diagnostic tests (errors are normally distributed, no serial correlation, and homoscedastic). The data explain the positive and significant influence of Transportation Capital Expenditure on Gross Domestic Product, and, hence, it is contributing to economic growth. Furthermore, the results show short-run unidirectional causation from Transportation Capital Expenditure to Gross Domestic Product.

scholarly journals Health Status, Labour Productivity and Economic Growth in Nigeria

2019 ◽  
pp. 1-12
Author(s):  
Kelani, Fatai Adeshina ◽  
Odunayo, Henry Adewale ◽  
Ozegbe, Azuka Elvis ◽  
Nwani, Stanley Emile
Keyword(s):  
Economic Growth ◽  
Health Status ◽  
Time Series Data ◽  
Labour Productivity ◽  
Unit Root Test ◽  
Developed Countries ◽  
Policy Framework ◽  
Series Data ◽  
The Impact ◽  
Bound Test

The quest for rapid economic growth and development has pre-occupied the minds of researchers and policy makers most especially in less developed countries. This has resulted to empirical inquiry into the causes of growth in a sustainable term. This study therefore examines the impact of health status and labour productivity on economic growth in Nigeria. By utilizing annual time series data from 1981 to 2017, the study carried out ADF unit root test to ascertain the stationarity of the series. The result confirms that the series were stationary at levels and t first difference, hence, the adoption of ARDL bound test to Co-integration. The empirical estimates of the parameters of the model show that both health status and labour productivity have positive impacts on economic growth in Nigeria. This follows economic theory as expected. A further analysis of the significance of the estimates reveals that health status plays a significant role in Nigerian growth process. However, labour productivity fails to significantly impact on growth episodes in Nigeria. Other variable which stimulates economic growth in the country is gross fixed capital formation. The study therefore recommends a policy framework towards improvement in the quality of labour through adequate funding of education and re-tooling the educational system to enhance labour productivity for a more robust growth of the economy.

Non-Indian aid and growth nexus in Bhutan

2015 ◽  
Vol 14 (2) ◽  
pp. 117-129
Author(s):  
Jigme Nidup
Keyword(s):  
Economic Growth ◽  
Time Series ◽  
Foreign Aid ◽  
Time Series Data ◽  
Labour Force ◽  
Unit Root Test ◽  
Series Data ◽  
Content Type ◽  
Distributed Lag ◽  
The Impact

Purpose – The purpose of this paper is to investigate the impact of Non-Indian foreign aid on economic growth. In addition, this paper also investigates the importance of governance, policy and democratic institution in fostering economic growth. Planned development activities in Bhutan are mostly funded through external assistance, particularly from India. Bhutan also receives assistance from other bilateral and multilateral countries besides India. Design/methodology/approach – This study adopts the autoregressive distributed lag approach to cointegration using time-series data from 1982 to 2012. To ensure stationarity of data, the unit root test is conducted. Necessary diagnostic tests are also performed to confirm that the model does not violate regression assumptions. Findings – Findings indicate that Non-Indian foreign aid, governance and democracy are detrimental to economic growth. Policy and investment is found insignificant determinant. However, labour force and technology are found fostering economic growth. Research limitations/implications – Less number of observations restrained detailed analysis like the use of interactive terms between aid and governance, aid and policy to see its actual impact. Data on Indian aid could not be sourced from any documents. Those available were found only for few years restricting time series analysis. Originality/value – This study explored the impact of various determinants on economic growth in Bhutan. These findings provide useful insights for policymakers in Bhutan to make necessary decisions. The analysis also suggests future ground for research to those scholars and researchers.

scholarly journals Does trade openness cause economic growth in Bangladesh?

IIUC Studies ◽  
2020 ◽  
Vol 16 ◽  
pp. 99-110
Author(s):  
Sharmina Khanom
Keyword(s):  
Economic Growth ◽  
Time Series Data ◽  
Trade Openness ◽  
Unit Root Test ◽  
Positive Association ◽  
Series Data ◽  
Restrictive Trade ◽  
Annual Time Series ◽  
The Impact ◽  
The Relationship

Bangladesh has followed a restrictive trade policy immediately after its liberation. But the system was proven wrong, and gradually it opened up its market to others and started to improve its foreign trade. This paper investigates the impact of trade openness on Bangladesh's economic growth using annual time-series data for the period from 1972-73 to 2015-16. The paper uses such econometric tools as unit root test, cointegration test and error correction model to investigate the relationship between the variables. This study revealed a positive association between export and GDP but the opposite relation between import and GDP and recommended to enhance export earnings. IIUC Studies Vol.16, December 2019: 99-110

scholarly journals DOES TRADE OPENNESS PROMOTE ECONOMIC GROWTH? THE CASE OF SUDAN

2021 ◽  
Vol 2 (Volume 2) ◽  
pp. 123-132
Keyword(s):  
Economic Growth ◽  
Time Series Data ◽  
Trade Openness ◽  
Unit Root Test ◽  
Industrial Sector ◽  
Series Data ◽  
Kuznets Curve ◽  
Long Run ◽  
Short Run ◽  
The Impact

This study investigates the impact of trade openness on economic growth in Sudan. The study utilizes annual time series data from 1972 to 2019. The study adopts the unit root test. The Autoregressive Distributed Lag model has been used as an estimation technique. The results indicate that trade openness has a positive significant impact on the economic growth in short run. However, the impact is negative in the long run. When the long-run and short-run elasticity were compared the trade-led growth hypothesis was not found. It can be argued that the country is specialized in production of low-quality products and exporting primary products therefore the economic growth is negatively affected by trade openness. Moreover, the Environmental Kuznets Curve hypothesis results provide evidence against the existence of the hypothesis indicating that the country is still below the desired level of income. The study suggests that a country should promote the industrial sector which will help to export manufactured products and therefore will increase the productivity.

scholarly journals Assessment of the Impact of External Borrowing on the Economic Growth of the Developing Countries - Nigerian Experience

2018 ◽  
Vol 3 (1) ◽  
pp. 29 ◽  
Author(s):  
Adeboye Akanni Akinwunmi ◽  
Rosemary Bukola Adekoya
Keyword(s):  
Economic Growth ◽  
Exchange Rate ◽  
Capital Investment ◽  
Time Series Data ◽  
External Debt ◽  
Unit Root Test ◽  
Debt Service ◽  
Series Data ◽  
Explanatory Variables ◽  
The Impact

This paper examines the impact of foreign borrowing on the economic growth of the developing nations using Nigeria as a case study. Time series data from 1985 and 2015 were sourced from Central Bank of Nigeria Statistical Bulletin and other related journals. Data sourced were analyzed using Durbin Watson auto correlation to test for the reliability of the data and diagnostic tests such as unit root test (Augmented Dickey Fuller) and Johansen co-integration to test for the non-stationary of the data and long run relationship between the dependent and independent variables. OLS multiple regressions were used as estimation technique to test for the relationship between the explanatory variables and economic growth. The study revealed that there is significant relationship between economic growth, exports, capital investment and debt service payment but external debt and exchange rate have a significant inverse relationship with economic growth. The study concludes that, capital investment, exports and debt service payment have impact on economic growth but external debt and exchange rate do not. Therefore, the study recommends that, purpose of borrowing should be considered important while channeling the borrowed funds and efficient utilization of the funds to solve the purpose by which it was acquired will go a long way to impact growth on the economy of the country.

scholarly journals Domestic Investment and Economic Growth Nexus in Nigeria: A Post Recession View

2019 ◽  
pp. 1-12
Author(s):  
Onochie, Stanley Nwabuisi ◽  
Ozegbe, Azuka Elvis ◽  
Nwani, Stanley Emife
Keyword(s):  
Economic Growth ◽  
Time Series Data ◽  
Capital Expenditure ◽  
Unit Root Test ◽  
Analytical Framework ◽  
Series Data ◽  
Domestic Investment ◽  
Distributed Lag ◽  
Integration Test ◽  
The Impact

This study investigates the impact of domestic investment on economic growth in Nigeria, using annual secondary time series data spanning 37 years from 1981 to 2017 extracted from the CBN statistical bulletin. Real GDP was used to proxy economic growth, while the key explanatory variable is domestic investment with other control variables as capital expenditure, oil export earnings, exchange rate and inflation rate. The study embarked on pre-estimation test such as unit root test and the bounds co-integration test which informed our methodological choice of Autoregressive Distributed Lag (ARDL). The short run and long run estimates show that domestic investment has positive but insignificant impact on economic growth in Nigeria. This finding departs from those of previous writers due to the improved analytical framework employed in this study. On the basis of our findings, the study recommends a compulsory individual and national savings to boost the level of domestic investment in the country so as to achieve the much desired economic growth and development.

scholarly journals Effect of Foreign Aids on Economic Growth in Nigeria

2020 ◽  
pp. 194-204
Author(s):  
Isiaka Najeem Ayodeji ◽  
Makinde Wasiu Abiodun
Keyword(s):  
Economic Growth ◽  
Time Series Data ◽  
Unit Root Test ◽  
Secondary Data ◽  
Least Square ◽  
Series Data ◽  
Causality Test ◽  
Long Run ◽  
Integration Test ◽  
The Impact

This study investigated the impact of foreign aids on economic growth in Nigeria using time series data spanned from 1990 to 2017. The research considered the secondary data that were gathered from CBN statistical bulletin 2017 and World Bank Data Indictors. Ordinary Least Square techniques was adopted in the study and used Augmented Dickey-Fuller Unit Root Test, co integration test, granger causality test, ECM to estimates data employed. The findings revealed that all the variables employed were stationary at first difference and integrated at the same order1(I), the co-integration test shows that variables are co-integrated at one co-integrating equation which means that there is a long run relationship. The Error Correction Model established that the error that caused disequilibrium in the short run is being corrected in the long-run at a speed of adjustment at 6%. The findings revealed real gross domestic product responds inversely to changes in official development assistance and foreign direct investment. Based on these findings the study concluded that foreign aids have a significant impact on economic growth in Nigeria. Different diagnostic tests are applied in order to confirm the major assumption of multiple regression analysis like multicollinearity, heteroskedasticity and autocorrelation. Therefore, the study recommends among others that government needs to formulate strong and effective education and healthcare policies to facilitate and attract investment in the sectors and improve their efficiency in the long-run that will influence productivity.

scholarly journals Impact of Government Expenditure on Economic Growth in Nigeria, 1970-2019

2021 ◽  
Vol 12 (No. 1) ◽  
pp. 139-174
Author(s):  
Chandana Aluthge ◽  
Adamu Jibir ◽  
Musa Abdu
Keyword(s):  
Economic Growth ◽  
Structural Breaks ◽  
Time Series Data ◽  
Capital Expenditure ◽  
Government Expenditure ◽  
Unit Root Test ◽  
Series Data ◽  
Long Run ◽  
Short Run ◽  
The Impact

This study investigates the impact of Nigerian government expenditure (disaggregated into capital and recurrent) on economic growth using time series data for the period 1970-2019. The paper employs Autoregressive Distributed Lag (ARDL) model. To ensure robustness of results, the study accounts for structural breaks in the unit root test and the co-integration analysis. The key findings of the study are that capital expenditure has positive and significant impact on economic growth both in the short run and long run while recurrent expenditure does not have significant impact on economic growth both in the short run and long run. The study recommends that government should increase the share of the capital expenditure especially on meaningful projects that have direct bearing on the citizen’s welfare. Government should also improve the spending patterns of recurrent expenditure through careful reallocation of resources toward productive activities that would enhance human development in the country.

scholarly journals TRADE OPENNESS AND ECONOMIC GROWTH IN MALAYSIA FROM 1980-2018

2020 ◽  
Vol 5 (2) ◽  
pp. 55-63
Author(s):  
Khairunisah Kamsin ◽  
James Alin ◽  
Mori Kogid
Keyword(s):  
Economic Growth ◽  
Time Series Data ◽  
Trade Openness ◽  
Unit Root Test ◽  
Wald Test ◽  
Real Effective Exchange Rate ◽  
Series Data ◽  
Long Run ◽  
The Impact ◽  
Bound Test

This study analyses the impact of trade openness on economic growth, between 1980-2018. This study using the unit root test (ADF) and the Philip and Perron (PP) test to examine the stationary of the time series data, the ARDL test to show the cointegration and long-run relationship between variables, and the Wald test to show the short-term effect of the variables. The finding shows that all variables have a long-run relationship with economic growth and the bound test shows that foreign direct investment (FDI) and the Real Effective Exchange Rate (REER) have a positive and significant relationship with economic growth. The study also found that openness is correlated with economic growth in Malaysia.

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