Bridging Household Income Gap: Malaysia

2021 ◽  
Vol 6 (2) ◽  
pp. 9
Author(s):  
Mohammad Zuhairie Zainudin ◽  
Ong Hway-Boon ◽  
Chong Choy-Yoke
Keyword(s):  
Human Capital ◽  
Household Income ◽  
Technological Progress ◽  
Panel Cointegration ◽  
Physical Capital ◽  
Least Square ◽  
Causality Analysis ◽  
Income Gap ◽  
Long Run ◽  
Short Run

The purpose of this paper is to examine the long run and the short run relationship between household income gap, physical capital, human capital, and technological progress in Malaysia. Based on the Solow's growth model, this study applied the panel cointegration estimation of the full modified ordinary least square (FMOLS), as well as the Granger causality analysis. The result showed that there is a short run and long run relationship running from physical capital, human capital, technological progress towards the income gap of M40 and B40 groups of households. This study is unique because it addresses the income gap between a group of households of the bottom 40% and middle 40% across all states in Malaysia.

Does female human capital contribute to economic growth in India?: an empirical investigation

2017 ◽  
Vol 44 (11) ◽  
pp. 1506-1521 ◽  
Author(s):  
Madhu Sehrawat ◽  
A.K. Giri
Keyword(s):  
Economic Growth ◽  
Human Capital ◽  
Physical Capital ◽  
Variance Decomposition ◽  
Content Type ◽  
Indian Economy ◽  
Education And Health ◽  
Long Run ◽  
Short Run ◽  
The Impact

Purpose The purpose of this paper is to examine the impact of female human capital on economic growth in the Indian economy during 1970-2014. Design/methodology/approach The paper employs Ng-Perron unit root test to check the order of integration of the variables. The study also used ARDL-bounds testing approach and the unrestricted error-correction model to investigate co-integration in the long run and short run; Granger’s causality test to investigate the direction of the causality; and variance decomposition test to capture the influence of each variable on economic growth. Findings The study constructed a composite index for both male and female human capitals by taking education and health as a proxy for human capital. The empirical findings reveal that female human capital is significant and positively related to economic growth in both short run and long run, while male human capital is positive but insignificant to the economic growth; same is the case for physical capital, it implies that such investment regarding female human capital needs to be reinforced. Further, there is an evidence of a long-run causal relationship from female human capital, male human capital and physical capital to economic growth variable. The results of variance decomposition show the importance of the female human capital variable is increasing over the time and it exerts the largest influence in change in economic growth. Research limitations/implications The empirical findings suggest that the Indian economy has to pay attention equally on the development of female human capital for short-run as well as long-run growth of the economy. This implies that the policy makers should divert more expenditure for developing support for female education and health. Originality/value To the best of authors’ knowledge, this is the first attempt to study the relationship between female human capital and economic growth in the context of the Indian economy.

scholarly journals Ekonomske posledice španske groznice (1918–1920): skica za ekonomsku istoriografiju jedne pandemije

2021 ◽  
Vol 69 (1) ◽  
pp. 131-170
Author(s):  
Boris Begović
Keyword(s):  
Human Capital ◽  
Technological Progress ◽  
Excess Mortality ◽  
Labour Supply ◽  
Aggregate Demand ◽  
Intergenerational Transfer ◽  
Long Run ◽  
Short Run ◽  
Spanish Flu ◽  
The Impact

The aim of the paper is to explore the economic outcomeс of the Spanish flu pandemic and to systemise the insights in such a way that they can be used for shedding light on the economic outcomes of COVID-19 pandemic. It was demonstrated that in the short run the impact of the Spanish flu was a significant one-off drop of the output due to the significant decrease in labour supply augmented by the decrease in aggregate demand. In the long run the Spanish flu decreased the level of available human capital in two ways: directly due to the excess mortality, and indirectly due to the intergenerational transfer of lower human capital and the health of mothers during pregnancy. The decrease in human capital generated adverse consequences on economic growth and these consequences increase with technological progress, which demands a higher level of human capital.

scholarly journals A Dynamic Analysis of the Relationship among Human Development, Exports and Economic Growth in Pakistan.

2009 ◽  
Vol 48 (4II) ◽  
pp. 885-920 ◽  
Author(s):  
Muhammad Afzal ◽  
A. Rauf Butt ◽  
Mr. Hafeez ur Rehman ◽  
Ishrat Begum
Keyword(s):  
Economic Growth ◽  
Human Capital ◽  
Human Development ◽  
Granger Causality ◽  
Capital Accumulation ◽  
Physical Capital ◽  
Causality Test ◽  
Real Gdp ◽  
Long Run ◽  
Short Run

This study investigates the econometrically empirical evidence of both the short-run and long-run interrelationships among human development, exports and economic growth in an ARDL framework for Pakistan. This study also examines causal linkages among the said variables by applying the Augmented Granger Causality test of Toda-Yamamoto (1995). By using data on Pakistan’s real GDP, real exports and Human Development Index (HDI) for the period 1970-71 to 2008-09, three models have been estimated. The results show cointegration between economic growth, physical capital, real exports and human development when human development is taken as dependent variables. Furthermore, unidirectional Granger causality running from real GDP to real exports has been found in Bivariate, Trivariate and Tetravariate causality framework. The inclusion of HDI as a measure of human development reduces the physical capital share in real GDP whereas it improves the robustness of the regression model. Real GDP seems to provide resources to improve human development in only the long-run while human capital accumulation does not seem to accelerate real GDP both in the short-run and the long-run. The empirical results of the study do not support ‘export-led growth hypothesis’ and human capital-based endogenous growth theory in case of Pakistan, however, it does support ‘growth-driven exports hypothesis’ in case of Pakistan. JEL classification: O11 Keywords: Human Development, Exports, Economic Growth, ARDL, Causality

scholarly journals Is Tourism a Key Factor for Economic Growth? Fresh Evidence from South Europe Using Panel Cointegration and PVAR Analyses

2020 ◽  
Vol 6 (2) ◽  
pp. 123-138
Author(s):  
Ioannis Kostakis
Keyword(s):  
Economic Growth ◽  
Causal Relationship ◽  
Labour Force ◽  
Panel Cointegration ◽  
Physical Capital ◽  
Impulse Response Functions ◽  
Long Run ◽  
Fixed Capital Formation ◽  
Key Factor ◽  
Short Run

This paper brings fresh empirical evidence on the relationship between tourism and economic growth for five South European countries over the period 2000Q1-2018Q4 within a multivariate framework. PVAR and panel cointegration analyses are employed to infer the causal relationship between tourism and economic growth. Heterogeneous panel cointegration test reveals a long-run relationship between real GDP, labour force, gross fixed capital formation and tourism. Granger causality validates the bidirectional and unidirectional causal relationship between tourism, labour and economic growth and physical capital and economic growth, respectively. Simultaneously, impulse-response functions of PVAR model highlight the fact that short-run innovations might have a smaller impact on economic growth against a permanent long-run augmentation of these variables. Our findings might leave ample room for government policies to stimulate strategies for higher economic growth.

scholarly journals The Impact of Gender-Specific Human Capital on Economic Growth: An Empirical Investigation for Turkey

2018 ◽  
Vol 21 (s1) ◽  
pp. 15-30
Author(s):  
Hacer Simay Karaalp-Orhan
Keyword(s):  
Economic Growth ◽  
Human Capital ◽  
Physical Capital ◽  
Bounds Testing ◽  
Causality Test ◽  
Arithmetic Average ◽  
Long Run ◽  
Short Run ◽  
Education Indicators ◽  
The Impact

Abstract In this study, how the human capital disaggregated by gender and physical capital affects economic growth in Turkey is examined for the period of 1971–2015. By using an arithmetic average of health and education indicators as a proxy of human capital formation, an attempt was made to examine the relationship between the human capital and economic growth under the scope of gender inequality. In this context, an ARDL-bounds testing approach and the unrestricted error-correction model were used to investigate the co-integration in the long- run and short run. Further, the causality test was also conducted to identify the direction of the causality between the variables. The main finding indicates that male human capital has been the central variable affected by both economic growth and physical capital. On one hand, a significant positive relationship was found between the economic growth and physical capital and male human capital in the long-run, while on the other hand, the female human capital was associated negatively to the economic growth. There is no evidence of causality that links the female human capital to other variables. This result suggests that women are not well utilized in the Turkish economy and the country suffers from untapped potential of women.

Does Governance Matter? Evidence from BRICS

2019 ◽  
pp. 097215091986122
Author(s):  
Bhanu Pratap Singh
Keyword(s):  
Economic Development ◽  
Panel Cointegration ◽  
Least Square ◽  
Economic Modelling ◽  
Causality Test ◽  
Brics Countries ◽  
Long Run ◽  
Equilibrium Relationship ◽  
Short Run ◽  
Long Run Equilibrium

The role of governance is widely debated in the process of economic development. The current study focuses on examining the growth and the governance relationship for BRICS countries utilizing the annual balanced panel data for the period spanning from 1997 to 2015. Per capita real GDP growth is taken as a proxy for economic growth and six World Bank Governance Indicators are used as a measure of governance. Pedroni (2004, Econometric Theory, 20, 597–625) panel cointegration technique and fully modified ordinary least square (FMOLS) are used to look into a long-run equilibrium relationship. Dumitrescu and Hurlin’s (2012, Economic Modelling, 29, 1450–1460) panel causality test is used as a short-run diagnostics test for long-run equilibrium relationship. The major findings of the study show that growth and governance are complementary to each other. In the long run, governance promotes and sustains high-income growth, whereas, in the short run, minimum economic development is required for better functioning of institutions.

scholarly journals Human Capital Development and Economic Development in Nigeria

2021 ◽  
Vol 4 (1) ◽  
pp. 32-44
Author(s):  
Raymond M. ◽  
Ekponaanuadum N.
Keyword(s):  
Human Capital ◽  
Economic Development ◽  
Least Square ◽  
Human Capital Development ◽  
Ordinary Least Square ◽  
Long Run ◽  
Misery Index ◽  
The World ◽  
Short Run ◽  
Capital Development

This paper set out to investigate the impact of human capital development on the drive to achieving economic development in Nigerian. It adopted the Ex-post facto research design as the variables-Misery Index, GEH and GEE cannot be manipulated as they have previously occurred. The study span for a period of 38 years which covered from 1981 – 2018. Secondary data sourced from the statistical bulletin of the Central Bank of Nigeria and the world development index of the World Bank was utilized for this study. The study employed the ordinary least square (OLS) method and the Error Correction Model estimation technique to examine the long run relationship and short run dynamics of the variables. The result of the Johansen co-integration test established the presence of long run relationship between misery index, pupil teacher ratio, government spending on education and health. The result of the ordinary least square revealed a negative and significant relationship between misery index and pupil teacher ratio in the long run. The results of the short run analysis revealed that current level of pupil teacher ratio impact on the misery index in Nigeria negatively and significantly. Informed by the discoveries, the study proposed the recruitment of more teachers to improve the current pupil teacher ratio in the country and also increase the budgetary allocation to the education sector.

scholarly journals Institutional Quality, School Enrolment and Mobile Subscribers in Economic Community of West African States (ECOWAS-5): Impact on FDI using Panel Data

2018 ◽  
Vol 4 (1) ◽  
pp. 39-49
Author(s):  
Zulaiha A Zubair ◽  
Hussin ah Abdull
Keyword(s):  
Human Capital ◽  
Foreign Direct Investment ◽  
Panel Data ◽  
Direct Investment ◽  
Panel Cointegration ◽  
West African ◽  
Least Square ◽  
Economic Community ◽  
Ordinary Least Square ◽  
Long Run

Basically, the quality of institution, human capital (schoolenrolment) and infrastructure (mobile subscribers) are significant determinants of foreign direct investment (FDI). With exception of few studies on corruption, however, empirical research on  the link between infrastructure, human capital and FDI remain limited. Particularly in the context of Economic Community of West African States (ECOWAS). This paper aims to examine the linkage between infrastructure (mobile subscribers, corruption, schoolenrolment), and Foreign Direct Investment (FDI) among selected ECOWAS countries using panel data techniques for the period of 1990-2015. The methodology carried out to achieve this objective involves the panel unit root, panel cointegration and fully modified ordinary least square (FMOLS). The result indicates that, there is long run relationship among the series. Corruption and infrastructure are negatively significantly related with FDI at the long run in the selected ECOWAS countries. The empirical evidence indicates that feeble level of institutions (corruption) and infrastructure impedes FDI inflows in the selected ECOWAS countries. The results confirm that FDI enhancement through role of institution, schoolenrolment  and infrastructure (mobile subscribers) exist not only in the transition nation but also in the selected ECOWAS countries.

An Econometric Analysis on the Relationship between Globalisation and Inequality in South Africa

2020 ◽  
Vol 11 (1) ◽  
pp. 89-89
Author(s):  
Jacques de Jongh
Keyword(s):  
South Africa ◽  
Well Being ◽  
Causality Analysis ◽  
Global Integration ◽  
Development Indicators ◽  
Long Run ◽  
The World ◽  
Distribution Of Resources ◽  
Short Run ◽  
The Impact

Globalisation has had an unprecedented impact on the development and well-being of societies across the globe. Whilst the process has been lauded for bringing about greater trade specialisation and factor mobility many have also come to raise concerns on its impact in the distribution of resources. For South Africa in particular this has been somewhat of a contentious issue given the country's controversial past and idiosyncratic socio-economic structure. Since 1994 though, considerable progress towards its global integration has been made, however this has largely coincided with the establishment of, arguably, the highest levels of income inequality the world has ever seen. This all has raised several questions as to whether a more financially open and technologically integrated economy has induced greater within-country inequality (WCI). This study therefore has the objective to analyse the impact of the various dimensions of globalisation (economic, social and political) on inequality in South Africa. Secondary annual time series from 1990 to 2018 were used sourced from the World Bank Development indicators database, KOF Swiss Economic Institute and the World Inequality database. By using different measures of inequality (Palma ratios and distribution figures), the study employed two ARDL models to test the long-run relationships with the purpose to ensure the robustness of the results. Likewise, two error correction models (ECM) were used to analyse the short-run dynamics between the variables. As a means of identifying the casual effects between the variables, a Toda-Yamamoto granger causality analysis was utilised. Keywords: ARDL, Inequality, Economic Globalisation; Social Globalisation; South Africa

scholarly journals The Change of Sources of Growth and Sustainable Development in China: Based on the Extended EKC Explanation

2021 ◽  
Vol 13 (5) ◽  
pp. 2803
Author(s):  
Huaide Wen ◽  
Jun Dai
Keyword(s):  
Sustainable Development ◽  
Human Capital ◽  
Environmental Pollution ◽  
Knowledge Economy ◽  
Technological Progress ◽  
Inflection Point ◽  
Physical Capital ◽  
Production Factors ◽  
Main Production ◽  
Traditional Economy

This paper extends the “sources of growth” explanation for the Environmental Kuznets Curve (EKC) proposed by Copeland and Taylor in a concise theoretical framework, that is, when the sources of growth are transformed from physical capital and labor to human capital and knowledge, the environmental pollution could at first rise and then fall with a sustainable growth in per capita income. Using the provincial panel data from 1995 to 2017 in the mainland of China, an empirical analysis is carried out by the System Generalized Method of Moment (sys-GMM). The results show that: first, the EKC hypothesis exists in China. The inflection point for SO2 emissions has been passed in all of the provincial regions, and for CO2 and comprehensive environmental pollution losses have not been passed in some regions, but the inflection point from the national average level in China has been passed; second, the main production factors of the traditional economy, physical capital and labor, are positively correlated with environmental pollution, while human capital and green technological progress, the main production factors of the knowledge economy, are negatively related to environmental pollution; third, human capital and green technological progress have become important factors to promote economic growth, and human capital, in particular, has become the primary factor, which indicates that China is in the process of transforming traditional economy into a knowledge economy. The stage of China’s economic development and the trend of environmental pollution is consistent with the extended “sources of growth” explanation for the EKC, which proved the theoretical hypothesis. This has an important practical significance for China’s current economic reform and important theoretical value for the economic transformation and sustainable development of developing countries. The paper finally puts forward corresponding policy recommendations.

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