scholarly journals An econometric study of the role of the political stability on the relationship between democracy and economic growth

2020 ◽  
Vol 67 (2) ◽  
pp. 187-206
Author(s):  
Nedra Baklouti ◽  
Younes Boujelbene
Keyword(s):  
Economic Growth ◽  
Data Model ◽  
Generalized Method Of Moments ◽  
Political Stability ◽  
Dynamic Panel Data ◽  
The Political ◽  
Dynamic Panel ◽  
Mena Countries ◽  
The Relationship

This article examines the nexus between democracy and economic growth while taking into account the role of political stability, using dynamic panel data model estimated by means of the Generalized Method of Moments (GMM) over the period 1998 to 2011 for 17 Middle East and North Africa (MENA) countries. Our empirical results showed that there is a bidirectional causal relationship between democracy and economic growth. Moreover, it was found that the effect of democracy on economic growth depends on the political stability. The results also indicated that there is important complementarity between political stability and democracy. In fact, political stability is a key determinant variable of economic growth. Eventually, democracy and political stability, taken together, have a positive and statistically significant effect on economic growth. This finding suggests that, if accompanied by a stable political system, democracy can contribute to the economic growth of countries. Thus, the MENA governments should use policies to promote political stability in the region.

scholarly journals The Role of Urbanization Rate in the Relationship between Air Pollution and Health Expenditures: A Dynamic Panel Data Approach

2015 ◽  
Vol 53 ◽  
pp. 68-72 ◽  
Author(s):  
Maryam Fattahi
Keyword(s):  
Air Pollution ◽  
Generalized Method Of Moments ◽  
Health Expenditures ◽  
Dynamic Panel Data ◽  
Dynamic Panel ◽  
Public And Private ◽  
Urbanization Rate ◽  
The Impact ◽  
The Relationship

One of the available challenges in areas of health economics is identification of the effective factors on health expenditures. Air pollution plays important role in the public and private health expenditure but most studies have ignored the role of this category in explanation of health expenditures. On the other hand, the impact of air pollution on health expenditures is influenced by several factors. This study intends to investigate the effect of air pollution on public and private health expenditures and to identify the urbanization rate factor affecting the relationship between air pollution and public and private health expenditures. Scope of the present study is developing countries over period of 1995-2011. We used a dynamic panel and Generalized Method of Moments method. The empirical results indicate that air pollution has positive and significant effect on public and private health expenditures. Also, the results imply that urbanization rate affecting the relationship between air pollution and health expenditures that urbanization rate plays a reinforcing role.

Tourism-Led Growth Hypothesis: A New Global Evidence

2017 ◽  
Vol 59 (3) ◽  
pp. 304-311 ◽  
Author(s):  
Chor Foon Tang ◽  
Eu Chye Tan
Keyword(s):  
Economic Growth ◽  
Method Of Moments ◽  
Generalized Method Of Moments ◽  
Political Stability ◽  
Dynamic Panel ◽  
Beneficial Impact ◽  
The Relationship ◽  
Different Levels ◽  
Growth Hypothesis ◽  
Global Evidence

The primary aim of this study is to determine whether the tourism-led growth hypothesis is globally valid by accounting for countries’ income levels and their institutional qualities, against a panel dataset of 167 countries. The institutional qualities referred to are political stability and corruption control. We employ the dynamic panel generalized method of moments (GMM) approach to examine the relationship. It can be inferred from the exercise that tourism positively contributes to economic growth but the effect varies across countries at different levels of income and institutional qualities. Therefore, the effect of tourism on economic growth is contingent on levels of income and institutional qualities of the host tourism countries. Policy initiatives that aim to promote and strengthen institutional qualities should be undertaken for a country to enjoy the beneficial impact of tourism on economic growth and development.

Civil liberty and economic growth in the world: a long-run perspective, 1850–2010

2014 ◽  
Vol 10 (3) ◽  
pp. 427-449 ◽  
Author(s):  
JAVIER ALFONSO-GIL ◽  
MARICRUZ LACALLE-CALDERÓN ◽  
ROCÍO SÁNCHEZ-MANGAS
Keyword(s):  
Economic Growth ◽  
Data Model ◽  
Civil Liberty ◽  
Civil Liberties ◽  
Dynamic Panel Data ◽  
Dynamic Panel ◽  
Long Run ◽  
Sensitivity Tests ◽  
Economic Growth Rates ◽  
The Relationship

Abstract:The objective of this paper is to study the relationship between economic growth and civil liberty across the globe in the long run. To fulfill this aim, we use an unbalanced panel of 149 countries for the period 1850–2010 with data on gross domestic product (GDP) from Maddison, and data on civil liberties from Polity IV. The dynamics of both variables are investigated. Once country and time effects are accounted for in a dynamic panel data model, our results show that movements toward higher levels of civil liberty are associated with higher economic growth rates. Therefore, we find that civil liberties are a relevant factor to explain economic growth. We perform some sensitivity tests that confirm the robustness of our results.

scholarly journals The Effect of Trade Liberalization On Economic Growth: Selected MENA Countries

2016 ◽  
Vol 9 (1) ◽  
pp. 88 ◽  
Author(s):  
Naeimeh Hozouri
Keyword(s):  
Economic Growth ◽  
Trade Liberalization ◽  
Data Model ◽  
Inverse Relationship ◽  
Dynamic Panel Data ◽  
Trade Volume ◽  
Dynamic Panel ◽  
Mena Countries ◽  
Dynamic Panel Data Model ◽  
Tariff Rates

This paper investigates the combined effects of international trade on economic development deals and tariff rates. A<strong> </strong>sample of 12 countries (selected countries MENA) during the period of 2000-2013, and the dynamic panel data model have been used for this purpose. Our results show that the sensitivity of economic growth have significant and inverse relationship with tariff changes, though its relationship with trade volume is positive.

Merton-type default risk and financial performance: the dynamic panel moderation of firm size

2022 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Muhammad Mushafiq ◽  
Syed Ahmad Sami ◽  
Muhammad Khalid Sohail ◽  
Muzammal Ilyas Sindhu
Keyword(s):  
Financial Performance ◽  
Firm Size ◽  
Default Risk ◽  
Banking Sector ◽  
Generalized Method Of Moments ◽  
Dynamic Panel Data ◽  
Dynamic Panel ◽  
Content Type ◽  
Nonfinancial Firms ◽  
The Relationship

PurposeThe main purpose of this study is to evaluate the probability of default and examine the relationship between default risk and financial performance, with dynamic panel moderation of firm size.Design/methodology/approachThis study utilizes a total of 1,500 firm-year observations from 2013 to 2018 using dynamic panel data approach of generalized method of moments to test the relationship between default risk and financial performance with the moderation effect of the firm size.FindingsThis study establishes the findings that default risk significantly impacts the financial performance. The relationship between distance-to-default (DD) and financial performance is positive, which means the relationship of the independent and dependent variable is inverse. Moreover, this study finds that the firm size is a significant positive moderator between DD and financial performance.Practical implicationsThis study provides new and useful insight into the literature on the relationship between default risk and financial performance. The results of this study provide investors and businesses related to nonfinancial firms in the Pakistan Stock Exchange (PSX) with significant default risk's impact on performance. This study finds, on average, the default probability in KSE ALL indexed companies is 6.12%.Originality/valueThe evidence of the default risk and financial performance on samples of nonfinancial firms has been minimal; mainly, it has been limited to the banking sector. Moreover, the existing studies have only catered the direct effect of only. This study fills that gap and evaluates this relationship in nonfinancial firms. This study also helps in the evaluation of Merton model's performance in the nonfinancial firms.

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.

Do energy efficiency building codes help minimize the efficiency gap in the U.S.? A dynamic panel data approach

2020 ◽  
pp. 0958305X2094388
Author(s):  
Bishwa S Koirala ◽  
Alok K Bohara
Keyword(s):  
Energy Efficiency ◽  
Panel Data ◽  
Data Model ◽  
Unobserved Heterogeneity ◽  
Generalized Method Of Moments ◽  
Dynamic Panel Data ◽  
Dynamic Panel ◽  
Residential Sector ◽  
Energy Efficiency Policy ◽  
Efficiency Gap

This study estimates the effects of energy efficiency policy in the residential sector using panel data of 48 contiguous states starting from 1970 to 2017. To avoid any unobserved heterogeneity and facilitate efficiency in estimation, this study employs a Dynamic Panel Data model with a two-step Generalized Method of Moments technique. The results suggest that energy efficiency policy for the residential sector has saved about 8.6 percent in energy consumption, which is about 22 percent of the total stated saving, leaving an energy efficiency gap of 1.5771 quadrillion Btu. Consistent with previous estimations, this study finds that theoretical saving amounts overestimate energy efficiency output and overinflate the increase in potential energy efficiency by about 32 percent. Since energy efficiency policy has failed to achieve the stated amount of saving in the residential sector, households have no incentive to adopt the energy efficiency policy, which has created an unusual gap in energy efficiency.

scholarly journals EXTERNAL DEBT, INSTITUTIONAL QUALITY AND ECONOMIC GROWTH

2020 ◽  
Vol 23 (2) ◽  
pp. 221-238
Author(s):  
Siti Nurazira Mohd Daud
Keyword(s):  
Economic Growth ◽  
Panel Data Analysis ◽  
External Debt ◽  
Institutional Quality ◽  
Dynamic Panel Data ◽  
Dynamic Panel ◽  
Debt Overhang ◽  
Negative Effect ◽  
Dynamic Panel Data Analysis

This paper addresses the gap in the literature by investigating the role of the institutional quality in the nexus of external debt and economic growth. By employing a dynamic panel data analysis, we found that the institutional quality plays some role in complementing the effect of external debt on a country’s economic growth. We also found that the negative effect of external debt and a country’s economic growth monotonically increases with the level of institutional indicator, which implies the possibility of debt overhang may still happen in economies endowed with good institutions, but for higher values of debt.

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