scholarly journals Zakat Distribution and Growth in the Federal Territory of Malaysia

2012 ◽  
Vol 4 (8) ◽  
pp. 449-456
Author(s):  
Mohammed B. Yusoff
Keyword(s):  
Economic Growth ◽  
Granger Causality ◽  
Causality Test ◽  
Vector Error Correction ◽  
Vector Error ◽  
Long Run ◽  
Cointegration Tests ◽  
Causality Tests ◽  
Short Run ◽  
The Impact

This research paper aims to examine the impact of zakat distribution on growth in the Federal Territory Malaysia. Specifically, an econometric study is carried out to examine the ability of zakat expenditure to affect real economic growth in the Federal Territory Malaysia by employing various econometric procedures such as the unit root tests, the cointegration tests, the vector error-correction model (VECM), and the Granger causality tests. The findings of the study suggest that zakat expenditure has a positive relationship with real GDP in the long-run. The Granger causality test indicates that zakat spending causes real economic growth with no feedback. In other words, zakat expenditure could boost GDP in the Federal Territory Malaysia both in the short-run and long-run.

scholarly journals TRADE OPENNESS AND ECONOMIC GROWTH: EMPIRICAL EVIDENCE FROM INDIA

2014 ◽  
Vol 16 (1) ◽  
pp. 188-205 ◽  
Author(s):  
Qazi Muhammad Adnan Hye ◽  
Wee-Yeap Lau
Keyword(s):  
Economic Growth ◽  
Human Capital ◽  
Granger Causality ◽  
Trade Openness ◽  
Granger Causality Test ◽  
Causality Test ◽  
Long Run ◽  
Rolling Window ◽  
Short Run ◽  
The Impact

The main objective of this study is to develop first time trade openness index and use this index to examine the link between trade openness and economic growth in case of India. This study employs a new endogenous growth model for theoretical support, auto-regressive distributive lag model and rolling window regression method in order to determine long run and short run association between trade openness and economic growth. Further granger causality test is used to determine the long run and short run causal direction. The results reveal that human capital and physical capital are positively related to economic growth in the long run. On the other hand, trade openness index negatively impacts on economic growth in the long run. The new evidence is provided by the rolling window regression results i.e. the impact of trade openness index on economic growth is not stable throughout the sample. In the short run trade openness index is positively related to economic growth. The result of granger causality test confirms the validity of trade openness-led growth and human capital-led growth hypothesis in the short run and long run.

THE CAUSAL RELATIONSHIP BETWEEN INSURANCE AND ECONOMIC GROWTH IN NIGERIA (1986-2010)

2012 ◽  
Vol 02 (12) ◽  
pp. 49-57
Author(s):  
TAIWO AKINLO
Keyword(s):  
Economic Growth ◽  
Interest Rate ◽  
Causal Relationship ◽  
Causality Test ◽  
Correction Model ◽  
Vector Error Correction ◽  
Vector Error ◽  
Long Run ◽  
Short Run

This study examined the causal relationship between insurance and economic growth in Nigeria over the period 1986-2010. The Vector Error Correction model (VECM) was adopted. The cointegration test shows that GDP, premium, inflation and interest rate are cointegrated when GDP is the edogeneous variable. The granger causality test reveals that there is no causality between economic growth and premium in short run while premum, inflation and interest rate Granger cause GDP in the long run which means there is unidirectional causality running from premium, inflation and interest rate to GDP. This means insurance contributes to economic growth in Nigeria as they provide the necessary long-term fund for investment and absolving risks.

scholarly journals The Impact of Imports and Exports Performance on the Economic Growth of Somalia

2017 ◽  
Vol 10 (1) ◽  
pp. 110
Author(s):  
Ali Abdulkadir Ali ◽  
Ali Yassin Sheikh Ali ◽  
Mohamed Saney Dalmar
Keyword(s):  
Economic Growth ◽  
Granger Causality ◽  
Ordinary Least Squares ◽  
Growth Strategy ◽  
Causality Test ◽  
Econometric Methods ◽  
Long Run ◽  
Augmented Dickey Fuller ◽  
Short Run ◽  
The Impact

In this paper the impact of exports and imports on the economic growth of Somalia over the period 1970-1991 was investigated. The study applied econometric methods such as Ordinary Least Squares technique. The Granger Causality and Johansen Co-integration tests were also used for analysing the long term association. By using Augmented Dickey-Fuller (ADF) and Phillip-Perron (PP) stationarity test, the variables proved to be integrated of the order one 1(1) at first difference. Johansen test of co-integration was used to determine if there is a long run association in the variables. To determine the direction of causality among the variables, both in the long and short run, the Pair-wise Granger Causality test was carried out. It was found that economic growth does not Granger Cause Export but was found hat export Granger Cause GDP. So this implies that there is unidirectional causality between exports and economic growth. Also there is bidirectional Granger Causality between import and export. The results show that economic growth in Somalia requires export-led growth strategy as well as export led import. Imports and exports are thus seen as the source of economic growth in Somalia.

scholarly journals International Logistics and Cross-Border E-Commerce Trade: Who Matters Whom?

2021 ◽  
Vol 13 (4) ◽  
pp. 1745
Author(s):  
Yugang He ◽  
Renhong Wu ◽  
Yong-Jae Choi
Keyword(s):  
Panel Cointegration ◽  
The Sustainable Development ◽  
Vector Error Correction ◽  
Cross Border ◽  
Vector Error ◽  
Long Run ◽  
Cointegration Tests ◽  
Causality Tests ◽  
Short Run

Unlike previous papers on international logistics and cross-border e-commerce trade, this paper sets Organization for Economic Co-operation and Development (OECD) countries as an example to explore the dynamic interaction between international logistics and cross-border e-commerce trade. The panel data for the period 2000–2018 will be employed to perform an empirical analysis via a host of econometric techniques, such as panel unit root tests, panel cointegration tests, panel causality tests and the panel vector error correction model. Incorporating with other control variables, we find that there is a long-term relationship between international logistics and cross-border e-commerce trade. Specifically speaking, in the long-run, international logistics has a positive and significant effect on cross-border e-commerce trade. However, in the short-run, international logistics has a negative and significant effect on cross-border e-commerce trade. Furthermore, the results suggest that deviation from a cointegration system of cross-border e-commerce trade and international logistics will lead to the cross-border e-commerce trade and international logistics changing within the range of approximately 2.2% to 47.2% in the next period. Therefore, referring to these findings, each OECD country’s government should take up corresponding policies to ensure the sustainable development of both international logistics and cross-border e-commerce trade.

scholarly journals Export Diversification and Economic Growth in the United Arab Emirates: An Empirical Investigation

2020 ◽  
Author(s):  
SAIMA SHADAB
Keyword(s):  
Economic Growth ◽  
United Arab Emirates ◽  
Export Diversification ◽  
Test Results ◽  
Causality Test ◽  
Correction Model ◽  
Vector Error Correction ◽  
Vector Error ◽  
Long Run ◽  
Short Run

Abstract Using the Vector Error Correction Model and Toda-Yamamoto Causality approach, this paper investigates the short-run and long-run relationship between export diversification, physical and human capital, imports, and economic growth in the UAE. The study period in consideration is 1975-2017. The findings obtained from the VECM test confirm the existence of a significant long-run relationship between export diversification, imports, and economic growth in the UAE. Besides, the Toda Yamamoto Granger Causality test results reveal that imports Granger-cause UAE’s economic growth which proves the validity of the Import-Led Growth hypothesis for the UAE economy in the long-run. The results also confirm that a unidirectional causal relationship exists from export diversification to economic growth for the UAE. This finding indicates the success of the UAE economy in attaining economic diversification and reduction from oil-dependency.

Economic growth and the development of banking and insurance sector in the post-liberalized India

2017 ◽  
Vol 44 (12) ◽  
pp. 2187-2207 ◽  
Author(s):  
Shrutikeerti Kaushal ◽  
Amlan Ghosh
Keyword(s):  
Economic Growth ◽  
Causality Test ◽  
Data Set ◽  
Content Type ◽  
Vector Error Correction ◽  
Insurance Sector ◽  
Vector Error ◽  
Long Run ◽  
Short Run ◽  
Banking Development

Purpose The importance of banking and insurance, as an important part of the financial system, has been well accepted in the growth literature. Acting as financial intermediaries they perform important functions that may contribute in economic growth. Addressing this issue, the purpose of this paper is to empirically examine the relationship between banking, insurance and economic growth in India in the post-liberalized era when the private sector was allowed to operate banking and insurance business. Design/methodology/approach In order to find the long-run and short-run relationship between banking, insurance and economic growth, the study uses the VAR-vector error correction model (VECM) along with Granger causality test to explore any causal relationship. Findings The results indicate that there is the long-term relationship between banking, insurance and economic growth and the causality results show a bi-directional relationship between insurance activity and economic growth; however, banking is not granger cause of insurance or economic growth rather it is economic growth that cause banking development. Research limitations/implications The only limitation to the study is the non-availability of monthly figures of GDP. The study therefore, as suggested by RBI, uses monthly data set of Index of Industrial Production to measure economic growth. Practical implications The findings of the study give policy directions to the policymakers to make strategies that are conducive toward boosting development in insurance in order to achieve the targeted economic growth. Originality/value This work is the first attempt to study the conjoint relationship between banking, insurance and economic growth on the Indian economy after the reforms were initiated in the financial sector.

Relationships between Financial Development, Trade Openness, and Economic Growth

2015 ◽  
pp. 183-196
Author(s):  
Fahri Seker ◽  
Murat Cetin ◽  
Birol Topcu ◽  
Gamze Yıldız Seren
Keyword(s):  
Economic Growth ◽  
Granger Causality ◽  
Financial Development ◽  
Trade Openness ◽  
Granger Causality Test ◽  
Bounds Testing ◽  
Causality Test ◽  
Vector Error Correction ◽  
Long Run ◽  
Short Run

The aim of this chapter is to investigate the cointegration and causal relationship between financial development, trade openness, and economic growth in Turkey for the period of 1980-2012. To analyze the data, the bounds testing and Johansen-Juselius approaches to cointegration and Granger causality test based on vector error-correction model are employed. The cointegration tests suggest that there is a long-run relationship between the variables. The Granger causality test reveals long-run bidirectional causality between trade openness and economic growth. The findings also indicate unidirectional causality running from financial development to trade openness and economic growth in the long run as well as a bi-directional causality between financial development and economic growth in the short run. The results support supply-leading and trade-led growth hypotheses. Therefore, it can be suggested that Turkey can accelerate its economic growth by improving its financial systems and encouraging foreign trade.

Unemployment and its Impact on Economic Growth in the European Union

2015 ◽  
pp. 12-22 ◽  
Author(s):  
Murat Cetin ◽  
Davuthan Gunaydın ◽  
Hakan Cavlak ◽  
Birol Topcu
Keyword(s):  
Economic Growth ◽  
Panel Cointegration ◽  
Policy Implications ◽  
The European Union ◽  
Vector Error Correction ◽  
Long Run ◽  
Cointegration Tests ◽  
Causality Tests ◽  
Negative Effect ◽  
The Impact

Unemployment has become an increasingly serious economic and social problem in many European countries. Theoretically, unemployment has a negative effect on economic growth and development. This chapter examines the impact of unemployment on economic growth in 15 EU countries from 1984 to 2012 by using several panel data techniques. Panel unit root tests suggest that the series employed in the study are stationary at first differences. In other words, the series are integrated of order one, I(1). Panel cointegration tests show that the variables are cointegrated over the period implying a long-run relationship between the variables. Panel OLS estimations show that the impact of unemployment on economic growth is negative and statistically significant. This indicates that unemployment decreases economic growth in these countries. Finally, Granger causality tests based on vector error correction model suggest that there is a bi-directional causality between the variables in the short and long run. The findings may provide some policy implications.

scholarly journals The Impact of Foreign Aid on Economic Growth in Morocco: Econometric Analysis Using VECM

2017 ◽  
Vol 9 (5) ◽  
pp. 87 ◽  
Author(s):  
Kawthar Aghoutane ◽  
Mohamed Karim
Keyword(s):  
Economic Growth ◽  
Foreign Aid ◽  
Empirical Literature ◽  
Government Consumption ◽  
Vector Error Correction ◽  
Vector Error ◽  
Long Run ◽  
Short Run ◽  
The Impact

The present work aims to contribute to the empirical literature on the effectiveness of Foreign aid in Morocco. We use the Vector Error Correction Model (VECM) to jointly capture the long-run relationship and short-run dynamics between Official Development Assistance and economic growth. Other variables such as investment, exports, and government consumption are also included in the model. The results indicate that the foreign aid promotes growth through government consumption in the short term. However, the impact of aid on economic growth becomes negative in the long term.

TAX REFORM AND ECONOMIC GROWTH NEXUS IN INDIA: EVIDENCE FROM THE COINTEGRATION AND ROLLING-WINDOW CAUSALITY

2020 ◽  
Vol 65 (06) ◽  
pp. 1699-1725
Author(s):  
NARAYAN SETHI ◽  
SAILEJA MOHANTY ◽  
SANHITA SUCHARITA ◽  
NANTHAKUMAR LOGANATHAN
Keyword(s):  
Economic Growth ◽  
Tax Reform ◽  
Petroleum Products ◽  
Causality Test ◽  
Long Run ◽  
Cointegration Tests ◽  
Rolling Window ◽  
Short Run ◽  
Taxation System ◽  
The Impact

This paper examines the impact of tax reform on the economic growth of India over the period 1975–2017. In order to measure the impact of tax reform on the economic growth, we have used various econometric tools like Maki and combined cointegration tests and the rolling-window causality test in this study. The study revealed that a stable long-run parameter stability relationship exists the series on tax reform but unable to obtain the short-run relationship. Results also revealed that growth-led taxation effects and tax-led-growth do not exist in India. Hence, India needs more policies which will help to remove inefficiencies created by the existing heterogeneous taxation system, revenue rate and inclusion of petroleum products, electricity, liquor and real estate and policymakers should adopt some policies for direct tax which reduce the imbalance in class.

Sign in / Sign up

Export Citation Format

Share Document