Electricity consumption and economic growth in ASEAN

2017 ◽  
Vol 5 (2) ◽  
pp. 16
Author(s):  
Ahmad Ghazali Ismail ◽  
Arlinah Abd Rashid ◽  
Azlina Hanif
Keyword(s):  
Economic Growth ◽  
Energy Use ◽  
Electricity Consumption ◽  
Panel Estimation ◽  
Real Gdp ◽  
Long Run ◽  
Bidirectional Relationship ◽  
Short Run ◽  
Using Data ◽  
The Relationship

The relationship and causality direction between electricity consumption and economic growth is an important issue in the fields of energy economics and policies towards energy use. Extensive literatures has discussed the issue, but the array of findings provides anything but consensus on either the existence of relations or direction of causality between the variables. This study extends research in this area by studying the long-run and causal relations between economic growth, electricity consumption, labour and capital based on the neo-classical one sector aggregate production technology mode using data of electricity consumption and real GDP for ASEAN from the year 1983 to 2012. The analysis is conducted using advanced panel estimation approaches and found no causality in the short run while in the long-run, the results indicate that there are bidirectional relationship among variables. This study provides supplementary evidences of relationship between electricity consumption and economic growth in ASEAN.

scholarly journals Dynamic Relationship Between Energy and Economic Growth: Evidence from D8 Countries.

2011 ◽  
Vol 50 (4II) ◽  
pp. 437-458 ◽  
Author(s):  
Sarwat Razzaqi ◽  
Faiz Bilquees ◽  
Saadia . Sherbaz
Keyword(s):  
Economic Growth ◽  
Granger Causality ◽  
Energy Use ◽  
Demand And Supply ◽  
Dynamic Relationship ◽  
Long Run ◽  
Production And Consumption ◽  
Short Run ◽  
Oil Embargo ◽  
The Relationship

Energy sector has a vital influence on an economy, on both demand and supply sides. Therefore, energy production and consumption bear great importance for the developing world. The oil embargo of 1970‘s and its impact on major macroeconomic variables throughout the world attracted many economists to examine the relationship between energy and economic prosperity. The researchers have been unable to establish a definitive direction of causality between the two variables. The purpose of this study is to empirically investigate the dynamic relationship between energy use and economic growth in the D8 countries. The evidence gathered through application of VAR Granger Causality, Johansen Cointegration and VECM proves existence of short-run and long-run correlation between energy use and economic development in all countries. The results supported either uni-directional or bi-directional causality in the D8 countries except for Indonesia in short-run where non-causality was established between the two variables. JEL classifications: C22; Q43. Keywords: Energy Use, Economic Growth, D8, VAR Granger Causality, Cointegration, VECM

scholarly journals Official Development Aid: Plaster in A Wound? Evidence Using Data From Ethiopia

2021 ◽  
Author(s):  
Cherkos Meaza
Keyword(s):  
Economic Growth ◽  
Developing Countries ◽  
Development Aid ◽  
Aid Effectiveness ◽  
Political Leader ◽  
Real Gdp ◽  
Long Run ◽  
Short Run ◽  
Using Data ◽  
Official Development Aid

Abstract The flow of aid to developing countries has increased massively and they receive billions of dollars per year in the form of aid from bilateral and multilateral donors. However, the economic growth achieved by many developing countries in general has not been satisfactory. Poverty is still there and resulted in a custom of aid dependence and foster the opportunity for the corrupted political leader. The conclusion on aid effectiveness is doubtful among economists, found to be inconclusive. This paper intends to see how ethiopian economy is reacting to the flow of foreign aid coming from rest of the world viz-a-viz the current most prestigous and influential arguments against and pro-effectiveness of aid. A time series on important parameters extending from 1981 to the most current 2017 is used and an econometrics techniques ECM is employed to examine the short run dynamics and long run relationship among the variables. The result of the short run dynamics showed that aid has a negative and statistically significant impact on economic growth. However, the impacts turns to be positive in the long run. economic growth measured by the real GDP adjusts to its long run equilibrium with an average speed of about 25.7 percent annually and it will roughly take it about 4 years to restore back to equilibrium, ceteris paribus.

scholarly journals The Relationship between Foreign Direct Investment and Economic Growth: A Case of Turkey

2021 ◽  
Vol 13 (7) ◽  
pp. 85
Author(s):  
Orhan Gokmen
Keyword(s):  
Economic Growth ◽  
Impulse Response Functions ◽  
Fdi Inflows ◽  
Vector Error Correction ◽  
Real Gdp ◽  
Long Run ◽  
Short Run ◽  
Macro Variables ◽  
The Relationship ◽  
Positive Effect

This paper examines the relationship between net FDI inflows and real GDP for Turkey from 1970 to 2019. Although conventional economic growth theories and most empirical research suggest that there is  a bi-directional positive effect between these macro variables, the results indicate that there is a uni- directional significant short-run positive effect of real GDP on net FDI inflows to Turkey by employing the Vector Error Correction Model, Granger Causality, Impulse Response Functions and Variance Decomposition. Also, there is no long-run effect of net FDI inflows found on real GDP, yet vice-versa long-run effect has been found. The findings recommend Turkish authorities optimally benefit from the potential positive effect of net incoming FDI on the real GDP by allocating it for the productive sectoral establishments while effectively maintaining the country’s real economic growth to attract further FDI inflows.

scholarly journals Official Development Aid: Plaster in A Wound? Evidence Using Data From Ethiopia

2021 ◽  
Author(s):  
Cherkos Meaza
Keyword(s):  
Economic Growth ◽  
Developing Countries ◽  
Development Aid ◽  
Aid Effectiveness ◽  
Political Leader ◽  
Real Gdp ◽  
Long Run ◽  
Short Run ◽  
Using Data ◽  
Official Development Aid

Abstract The flow of aid to developing countries has increased massively and they receive billions of dollars per year in the form of aid from bilateral and multilateral donors. However, the economic growth achieved by many developing countries in general has not been satisfactory. Poverty is still there and resulted in a custom of aid dependence and foster the opportunity for the corrupted political leader. The conclusion on aid effectiveness is doubtful among economists, found to be inconclusive.This paper intends to see how ethiopian economy is reacting to the flow of foreign aid coming from rest of the world viz-a-viz the current most prestigous and influential arguments against and pro-effectiveness of aid. A time series on important parameters extending from 1981 to the most current 2017 is used and an econometrics techniques ECM is employed to examine the short run dynamics and long run relationship among the variables.The result of the short run dynamics showed that aid has a negative and statistically significant impact on economic growth. However, the impacts turns to be positive in the long run. economic growth measured by the real GDP adjusts to its long run equilibrium with an average speed of about 25.7 percent annually and it will roughly take it about 4 years to restore back to equilibrium, ceteris paribus.

scholarly journals Official Development Aid: Plaster in A Wound? Evidence Using Data From Ethiopia

2021 ◽  
Author(s):  
Cherkos Meaza
Keyword(s):  
Economic Growth ◽  
Developing Countries ◽  
Development Aid ◽  
Aid Effectiveness ◽  
Political Leader ◽  
Real Gdp ◽  
Long Run ◽  
Short Run ◽  
Using Data ◽  
Official Development Aid

Abstract The flow of aid to developing countries has increased massively and they receive billions of dollars per year in the form of aid from bilateral and multilateral donors. However, the economic growth achieved by many developing countries, in general, has not been satisfactory. Poverty is still there and resulted in a custom of aid dependence and foster the opportunity for the corrupted political leader. The conclusion on aid effectiveness is doubtful among economists, found to be inconclusive.This paper intends to see how the Ethiopian economy is reacting to the flow of foreign aid coming from the rest of the world viz-a-viz the current most prestigious and influential arguments against and pro-effectiveness of aid. A time series on important parameters extending from 1981 to the most current 2017 is used and an econometrics technique ECM is employed to examine the short-run dynamics and long-run relationship among the variables.The result of the short-run dynamics showed that aid has a negative and statistically significant impact on economic growth. However, the impacts turn to be positive in the long run. economic growth measured by the real GDP adjusts to its long-run equilibrium with an average speed of about 25.7 percent annually and it will roughly take it about 4 years to restore to equilibrium, ceteris paribus.

ANALISIS PENGARUH EKSPOR TERHADAP PERTUMBUHAN EKONOMI INDONESIA

2017 ◽  
Vol 11 (1) ◽  
pp. 1-20
Author(s):  
Ari Mulianta Ginting
Keyword(s):  
Economic Growth ◽  
Export Performance ◽  
Descriptive Analysis ◽  
Correction Model ◽  
Administration System ◽  
Long Run ◽  
Short Run ◽  
Available Information ◽  
Increasing Trends ◽  
The Relationship

Ekspor merupakan salah satu faktor terjadinya peningkatan pertumbuhan ekonomi suatu negara, sejalan dengan hipotesis export-led growth (ELG). Penelitian ini menganalisis perkembangan ekspor dan pertumbuhan ekonomi Indonesia periode kuartal I 2001 sampai dengan kuartal IV 2015. Penelitian ini menggunakan analisis deskriptif dalam menggambarkan perkembangan pertumbuhan ekonomi serta ekspor dan analisis kuantitatif metode Error Correction Model (ECM) dalam menganalisis efek jangka panjang dan jangka pendek dari ekspor terhadap pertumbuhan ekonomi. Pada periode penelitian, data yang ada menunjukkan bahwa ekspor dan pertumbuhan ekonomi Indonesia sama-sama mengalami peningkatan. Hasil regresi ECM menunjukkan bahwa ekspor memiliki pengaruh yang positif dan signifikan secara statistik terhadap pertumbuhan ekonomi Indonesia, yang mendukung hipotesis bahwa ELG berlaku untuk Indonesia. Berdasarkan hasil penelitian ini, maka untuk mendorong pertumbuhan ekonomi Indonesia diperlukan peningkatan kinerja ekspor Indonesia. Peningkatan kinerja ekspor Indonesia dapat dilakukan dengan berbagai cara, salah satunya adalah dengan perbaikan sistem administrasi ekspor, peningkatan riset dan pengembangan produk Indonesia, peningkatan sarana dan prasarana infrastruktur, stabilitas nilai tukar dan perluasan pasar non tradisional, termasuk perbaikan struktur ekspor komoditas. Export is one of the factors behind the economic growth which is in line with the export-led growth hypotesis (ELG). This research analyzes the relationship between economic growth and export of Indonesia during first quarter of 2001 until fourth quarter of 2015. It employs descriptive analysis to describe export movement and economic growth during the study period and ECM model to analyze the long run and the short run effects of export on the economic growth. The available information indicated that, during the study period, both export and economic growth showed similar increasing trends. The result of the ECM model revealed that export had a positive and statistically significant relationship with the economic growth, supporting the hypotesis of ELG in Indonesia. Hence, to accelerate economic growth, efforts are required to boost the export performance in Indonesia. The Export performance can be increased by several way, such as improving the export administration system, increasing the research and development of Indonesian products, improving the facilities and infrastructure, exchange rate stability and the non-tradisional markets expansion, and including improvement of the export commodity structure.

The relationship between financial development and economic growth in Eswatini (formerly Swaziland)

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Siphe-okuhle Fakudze ◽  
Asrat Tsegaye ◽  
Kin Sibanda
Keyword(s):  
Economic Growth ◽  
Granger Causality ◽  
Financial Development ◽  
Granger Causality Test ◽  
Causality Test ◽  
Content Type ◽  
Distributed Lag ◽  
Long Run ◽  
Short Run ◽  
The Relationship

PurposeThe paper examined the relationship between financial development and economic growth for the period 1996 to 2018 in Eswatini.Design/methodology/approachThe Autoregressive Distributed Lag bounds test (ARDL) was employed to determine the long-run and short-run dynamics of the link between the variables of interest. The Granger causality test was also performed to establish the direction of causality between financial development and economic growth.FindingsThe ARDL results revealed that there is a long-run relationship between financial development and economic growth. The Granger causality test revealed bidirectional causality between money supply and economic growth, and unidirectional causality running from economic growth to financial development. The results highlight that economic growth exerts a positive and significant influence on financial development, validating the demand following hypothesis in Eswatini.Practical implicationsPolicymakers should formulate policies that aims to engineer more economic growth. The policies should strike a balance between deploying funds necessary to stimulate investment and enhancing productivity in order to enliven economic growth in Eswatini.Originality/valueThe study investigates the finance-growth linkage using time series analysis. It determines the long-run and short-run dynamics of this relationship and examines the Granger causality outcomes.

scholarly journals Investigating in the J-curve phenomenon in Tunisia- ARDL bound test approach

2020 ◽  
Vol 12 (5(J)) ◽  
pp. 23-32
Author(s):  
Elham Shubaita ◽  
Muhammad Mar’i ◽  
Mehdi Seraj
Keyword(s):  
Trade Balance ◽  
Real Exchange Rates ◽  
Distributed Model ◽  
Long Run ◽  
J Curve ◽  
Short Run ◽  
Using Data ◽  
Bound Test ◽  
The Relationship ◽  
Ardl Bound Test

This paper investigates the relationship between trade balance, real exchange rates, and incomes in Tunisia by adopting the autoregressive distributed model (ARDL) by using data over the period of 1980 to 2018. We also used the bound test cointegration between variables at a 10% significant level. Our findings show that the Tunisia economy does not match the Marshall-Lerner condition in the long run, that provides an accurate description of the particular situation for which a country currency devaluation or depreciation its currency under both fixed or floating regime is predicted to enhance the trade balance of a country, which means there is no j-curve phenomenon in the long run, which tries to differentiate between the change of short-run and long-run effects in the change of exchange rate on the trade balance. Our findings match the Marshall-Lerner condition in the short run and can confirm the existing j-curve in the case of Tunisia.

scholarly journals AID AND GROWTH IN BANGLADESH: A REASSESSMENT

2018 ◽  
pp. 422-440
Author(s):  
Sharif Hossain ◽  
Rajarshi Mitra ◽  
Thasinul Abedin
Keyword(s):  
Economic Growth ◽  
Foreign Aid ◽  
Inflation Rate ◽  
Government Expenditure ◽  
Real Income ◽  
Domestic Investment ◽  
Real Gdp ◽  
Long Run ◽  
Short Run ◽  
Per Capita

Although the amount of foreign aid received by Bangladesh as a share of GDP has declined over the years, Bangladesh remains one of the heavily aiddependent countries in Asia. The results of most empirical studies that have examined the effectiveness of foreign aid or other forms of development assistance for economic growth have varied considerably depending on the econometric methodology used and the period of study. As the debate and controversy over aid-effectiveness for economic growth continue to grow, this paper reinvestigates the short-run and long-run effects of foreign aid received on percapita real income of Bangladesh over the period 1972–2015. A vector error correction model is estimated. The results indicate lack of any significant short-run and long-run relation between foreign aid and per-capita real income. Results further indicate short-run unidirectional causalities from per-capita real GDP to domestic investment (in proportion to GDP), from government expenditure (in proportion to GDP) to inflation rate, from inflation rate to domestic investment (in proportion to GDP), and from domestic investment to foreign aid (as percentages of GDP). Short-run bidirectional causality is observed between per-capita electricity consumption and per-capita real GDP, and between per-capita real GDP and government expenditure (in proportion to GDP).

scholarly journals Inflation and Unemployment Trade-off: Is Phillips Curve True for African Developing Countries? Evidence from Sudan

2021 ◽  
Vol 4 (3) ◽  
Author(s):  
Omer Allagabo Omer Mustafa
Keyword(s):  
Economic Growth ◽  
Developing Countries ◽  
Phillips Curve ◽  
Economic Thought ◽  
Trade Off ◽  
Long Run ◽  
Short Run ◽  
Wage Inflation ◽  
The Relationship

The relationship between wage inflation and unemployment (Phillips Curve) is controversial in economic thought, and the controversy is centered around whether there is always a trade-off or not. If this relationship is negative it is called The short-run Fillips Curve. However, in the long run, this relationship may probable not exist. The matter of how inflation and unemployment influence economic growth, is debatably among macroeconomic policymakers. This study examines the behavior of the Phillips Curve in Sudan and its effect on economic growth.

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