scholarly journals Dynamics of Economic Growth and Environmental Degradation in Nigeria using Vector Auto-Regressive Model

2019 ◽  
Vol 7 (2) ◽  
Author(s):  
Timothy O. Olatayo ◽  
Mayor Andrew ◽  
Moses C. Ekperiware
Keyword(s):  
Economic Growth ◽  
Sustainable Development ◽  
Life Expectancy ◽  
Environmental Pollution ◽  
Environmental Degradation ◽  
Impulse Response Function ◽  
Economic Activities ◽  
Vector Error Correction ◽  
Life Expectancy At Birth ◽  
Long Run

The study examined the interrelationship among economic growth, environmental pollution and human health for Sustainable Development (SD) in Nigeria. This was to contribute to the dynamic debate of how human and economic activities relate and interrelate with environmental pollution in measuring sustainable development in Nigeria. This study further sought to verify the Environmental Kuznet Curve Hypothesis in Nigeria.The study employed the Vector Error Correction Model (VECM) to investigate linear and interrelationship mainly among life expectancy at birth, economic growth and environmental pollution in Nigeria from 1970-2015. Since the variables have unit root and revealed that there is at least a cointegrating equation in the model, the VECM become a more appropriate model for the study.The VECM Impulse Response Function (IRF) result indicated that economic growth increased environmental degradation in the long run and environmental degradation on the other way round reduced economic growth in most of the period of the study. The VECM system conditional forecast of 10%, 20% and 26% from 2000 to 2015 periods showed that a 10%, 20%, and 26% reduction forecasts of environmental pollution led to a consistent increased economic growth and life expectancy at birth of the country in the study. This indicated that a reduction in environmental pollution will improve the health of Nigerians and also enhance a sustainable development in the country.The study concluded that environmental degradation reduces economic growth while economic activities in the country increases environmental degradation in the country. From the conditional forecast, the study further concluded that efforts in reducing environmental pollution through policies and better environmental friendly economic activities will improves economic growth for sustainable development in the country.

The influence of health on economic growth from the perspective of sustainable development: a case of OECD countries

2020 ◽  
Vol 16 (3) ◽  
pp. 181-194 ◽  
Author(s):  
Seda Yıldırım ◽  
Durmus Cagri Yildirim ◽  
Hande Calıskan
Keyword(s):  
Economic Growth ◽  
Cluster Analysis ◽  
Sustainable Development ◽  
Health Status ◽  
Life Expectancy ◽  
Oecd Countries ◽  
Content Type ◽  
Life Expectancy At Birth ◽  
Lower Health

PurposeThis study aims to explain the role of health on economic growth for OECD countries in the context of sustainable development. Accordingly, the study investigates the relationship between health and economic growth in OECD countries.Design/methodology/approachThis study employed cluster analysis and econometric methods. By cluster analysis, 12 OECD countries (France, Germany, Finland, Slovenia, Belgium, Portugal, Estonia, Czech Republic, Hungary, South Korea, Poland and Slovakia) were classified into two clusters as high and low health status through health indicators. For panel threshold analysis, the data included growth rates, life expectancy at birth, export rates, population data, fixed capital investments, inflation and foreign direct investment for the period of 1999–2016.FindingsThe study determined two main clusters as countries with high health status (level) and low health status (level), but there was no threshold effect in clusters. It was concluded that an increase in the life expectancy at birth of countries with higher health status had no significant impact on economic growth. However, the increase in the life expectancy at birth of countries with lower health status influenced economic growth positively.Research limitations/implicationsThis study used data that including period of 1999–2016 for OECD countries. In addition, the study used cluster analysis to determine health status of countries, and then panel threshold analysis was preferred to explain significant relations.Originality/valueThis study showed that the role of health on economic growth can change toward country groups as higher and lower health status. It was proved that higher life expectancy can influence economic growth positively in countries with worse or low health status. In this context, developing countries, which try to achieve sustainable development, should improve their health status to achieve economic and social development at the same time.

scholarly journals Economic Growth and Life Expectancy: The Case of Iran

2016 ◽  
Vol 11 (1) ◽  
pp. 80-87 ◽  
Author(s):  
Hami Mahyar
Keyword(s):  
Economic Growth ◽  
Life Expectancy ◽  
World Bank ◽  
Correction Model ◽  
Vector Error Correction ◽  
Life Expectancy At Birth ◽  
Vector Error ◽  
Gdp Growth Rate ◽  
Proposed Model ◽  
Observation Period

AbstractRegarding the link between economic growth and it’s public outcomes, this paper studies the effect of economic growth on life expectancy in Iran during 1966-2013. To achieve the research objectives, annually data collected from World Bank Database and I used the life expectancy at birth and annually GDP growth rate to measure the research variables. Then I applied Vector Error Correction Model to estimate the proposed model. The results on this study show that economic growth has a positively significant effect on life expectancy in Iran during the observation period.

scholarly journals Intermediary performance of Islamic banks in the disruption era: Does it contribute to economic growth?

2021 ◽  
Vol 16 (1) ◽  
pp. 103-115
Author(s):  
Umrotul Khasanah ◽  
Ahmad Tibrizi Soni Wicaksono
Keyword(s):  
Economic Growth ◽  
Impulse Response Function ◽  
Third Party ◽  
Islamic Banks ◽  
Long Term Effects ◽  
Vector Error Correction ◽  
Long Run ◽  
Short And Long Term ◽  
Vector Error Correction Models

The study aims to measure the intermediary performance of Islamic banks in relation to economic growth in Indonesia in the short and long term. There are four main variables used, namely financing, fund placement in BI (Central Bank of Indonesia), investment in securities, and third-party funds in all Islamic banks from 2007 to 2019. The data were tested using vector error correction models (VECM), Granger Causality, Impulse Response Function (IRF), and Variant Decomposition (VDC) to examine causality relationships, the short- and long-term effects, shocks, and variances in Islamic bank intermediary performance to economic growth. The results show that there is a two-way causality relationship between financing and third-party funds to economic growth. While in the short term, fund placement in BI, investment in securities, and financing have a significant influence on economic growth, but in the long run, only the placement of funds in BI will affect economic growth. Also, only fund placement in BI can shock and significantly contribute to economic growth in the long term. The overall intermediary performance of Islamic banks has not contributed to Indonesia’s economic growth in the long term.

Fish Exports and Economic Growth: The Pakistan’s Experience

2019 ◽  
Vol 20 (2) ◽  
pp. 279-296 ◽  
Author(s):  
Syed Tehseen Jawaid ◽  
Mohammad Haris Siddiqui ◽  
Zeeshan Atiq ◽  
Usman Azhar
Keyword(s):  
Economic Growth ◽  
Time Series Data ◽  
Positive Impact ◽  
Impulse Response Function ◽  
Policy Implications ◽  
Sensitivity Analyses ◽  
Series Data ◽  
Distributed Lag ◽  
Long Run ◽  
Short Run

This study attempts to explore first time ever the relationship between fish exports and economic growth of Pakistan by employing annual time series data for the period 1974–2013. Autoregressive distributed lag and Johansen and Juselius cointegration results confirm the existence of a positive long-run relationship among the variables. Further, the error correction model reveals that no immediate or short-run relationship exists between fish exports and economic growth. Different sensitivity analyses indicate that initial results are robust. Rolling window analysis has been applied to identify the yearly behaviour of fish exports, and it remains negative from 1979 to 1982, 1984 to 1988, 1993 to 1999, 2004 and from 2010 to 2013, and it shows positive impact from 1989 to 1992, 2000 to 2003 and from 2005 to 2009. Furthermore, the variance decomposition method and impulse response function suggest the bidirectional causal relationship between fish exports and economic growth. The findings are beneficial for policymakers in the area of export planning. This study also provides some policy implications in the final section.

Enhancing Economic Growth and Government Revenue Generation in Nigeria: The Role of Diaspora Remittances

2021 ◽  
pp. 003464462110256
Author(s):  
Dal Didia ◽  
Suleiman Tahir
Keyword(s):  
Economic Growth ◽  
Parameter Estimates ◽  
Gross Domestic Product Growth ◽  
Correction Model ◽  
Vector Error Correction ◽  
Vector Error ◽  
Long Run ◽  
Short Run ◽  
The Empirical Analysis

Even though remittances constitute the second-largest source of foreign exchange for Nigeria, with a $24 billion inflow in 2018, its impact on economic growth remains unclear. This study, therefore, examined the short-run and long-run impact of remittances on the economic growth of Nigeria using the vector error correction model. Utilizing World Bank data covering 1990–2018, the empirical analysis revealed that remittances hurt economic growth in the short run while having no impact on economic growth in the long run. Our parameter estimates indicate that a 1% increase in remittances would result in a 0.9% decrease in the gross domestic product growth rate in the short run. One policy implication of this study is that Nigeria needs to devise policies and interventions that minimize the emigration of skilled professionals rather than depending on remittances that do not offset the losses to the economy due to brain drain.

scholarly journals Construction Sector Contribution to Economic Stability: Malaysian GDP Distribution

2021 ◽  
Vol 13 (9) ◽  
pp. 5012
Author(s):  
Wesam Salah Alaloul ◽  
Muhammad Ali Musarat ◽  
Muhammad Babar Ali Rabbani ◽  
Qaiser Iqbal ◽  
Ahsen Maqsoom ◽  
...  
Keyword(s):  
Sustainable Development ◽  
Construction Industry ◽  
Pearson Correlation ◽  
Impulse Response Function ◽  
Equilibrium Analysis ◽  
Construction Sector ◽  
Causality Test ◽  
Vector Error Correction ◽  
The World ◽  
Pearson Correlation Test

The construction sector exerts an exceptional impact on economic development all over the world. Adequate buildings and infrastructures made by the construction sector ensure that a country reaches certain targets like social development, industrialization, freight transportation, sustainable development, and urbanization. This study aims to determine the construction sector’s connectivity with other sectors through complex linkages that contribute immensely to the economy and gross domestic product (GDP). The data were collected from the Department of Statistics Malaysia and the World Bank from the year 1970 to 2019, and the Pearson correlation test, the cointegration test, and the Granger causality test were conducted. The vector error correction model (VECM) was created for short-term and long-term equilibrium analysis and impulse response function (IRF) was performed to study construction industry behavior. Afterwards, the forecasting was done for the year 2020 to 2050 of the Malaysian economy and GDP for the required sectors. It was revealed that some sectors, such as agriculture and services, have forward linkages while other sectors, such as manufacturing and mining, are independent of construction sector causality, which signifies the behavior of the contributing sectors when a recession occurs, hence generating significant revenue. The Malaysian economy is moving towards sustainable production with more emphasis on the construction sector. The outcome can be used as a benchmark by other countries to achieve sustainable development. The significance of this study is its usefulness for experts all over the world in terms of allocating resources to make the construction sector a sustainable sector after receiving a shock. A sustainable conceptual framework has been suggested for global application that shows the factors involved in the growth of the construction industry to ensure its sustainable development with time.

Export-led Growth Hypothesis: Econometric Evidence from Malaysia

2013 ◽  
Vol 14 (2) ◽  
pp. 94-112
Author(s):  
Hassanudin Mohd Thas Thaker ◽  
Tan Siew Ee ◽  
Sushant Vaidik
Keyword(s):  
Economic Growth ◽  
Time Series Data ◽  
Series Data ◽  
Vector Error Correction ◽  
Distributed Lag ◽  
Long Run ◽  
Paper Cover ◽  
Econometric Evidence ◽  
Augmented Dickey Fuller ◽  
Growth Hypothesis

The objective of this paper is to test the validity of the Export-led Growth Hypothesis (ELGH) in the Malaysian economy. Malaysia has always been considered to have attained its growth primarily through exports (Okposin, Bassey, Hamid, Halim, and Boon, 1999; Mun, 2008; Mahathir, 1990). In the past, several studies on this topic have been conducted but their analyses were limited to relationships using Bound-testing, Autoregressive –Distributed Lag (ARDL) and the Toda Yamamoto analysis. Empirical data and analysis in our paper cover a 21 – year span and quarterly time-series data (1991:Q1 – 2012:Q4) are used to test this ELG hypothesis. Also, many dynamic econometric measures including the Augmented Dickey Fuller (ADF) and Phillip – Perron (PP) unit root tests, Cointegration test as well as the Vector Error Correction model (VEC) for the long run have been applied. Based on these generic models, both real exports and capital stock (productivity) are found to have stimulated positive adjustments to economic growth in the long run whereas real exchange rate is found to have influenced economic growth negatively. Overall, our conclusion is that the ELG hypothesis seems applicable to Malaysia in the long run.

scholarly journals Foreign Direct Investment, Financial Development and Economic Growth Evidence from Saudi Arabia

2017 ◽  
Vol 8 (4) ◽  
pp. 228 ◽  
Author(s):  
Najeeb Muhammad Nasir ◽  
Mohammed Ziaur Rehman ◽  
Nasir Ali
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Financial Development ◽  
Direct Investment ◽  
Impulse Response Function ◽  
Saudi Arabian ◽  
Causality Test ◽  
Long Run ◽  
Oil Resources ◽  
Integration Test

This study is an effort to explain and establish a relationship among foreign direct investment, financial development and economic growth in Saudi Arabian context for the period of 1970 to 2015 by employing Vector Auto Regression (VAR) and modified Granger Casualty Models. The result of Johansen co-integration test illustrates that no long run co-integration can be established among the variables. VAR has established a link between economic growth, financial development and foreign direct investment. The Granger causality test also confirms that economic growth causes foreign direct investment and financial development which is a unidirectional causality running from economic growth towards foreign direct investment and financial development. No significant causality can be observed empirically between foreign direct investment and financial development. This feature can be attributed to the fact that Saudi Arabian economy is still heavily dependent on its oil resources which is the driving force behind growth. Impulse Response Function has been utilized in order to observe the response to the shocks among the variables.

scholarly journals Profitability Variables and Bank Size Effects on Corporate Zakat: Evidence from Indonesian Islamic Banks

2019 ◽  
Vol 4 (1) ◽  
pp. 55-66
Author(s):  
Muhammad Anif Afandi
Keyword(s):  
Impulse Response Function ◽  
Islamic Banks ◽  
Vector Error Correction ◽  
Independent Variables ◽  
Vector Error ◽  
Long Run ◽  
Short Run ◽  
Operational Activities ◽  
Conventional Banks ◽  
Research Period

Islamic banks carry out their operational activities based on Islamic principles. Thus, they are not only required to pay taxes but also zakat of 2.5 percent with several conditions. Theoretically, zakat has an impact on Islamic banks larger expenditures compared to conventional banks which are not obliged to. This research examines and analyzes the extent to which profitability variables which are ROA, ROE, and BOPO, and bank size which is represented by total assets, can affect corporate zakat expenditure by Islamic Commercial Banks (BUS) in Indonesia. To do so, the Panel Vector Error Correction Model (PVECM) is used to analyze the subject matters which the period covers from 2012 to 2017. This work finds that in the short-run, all the independent variables were insignificant. However, in the long-run only ROE and BOPO which were significant. The results of the Impulse Response Function (IRF) analysis showed that the dependent variable responds to the shock of its independent variables with fluctuating and even negative trend. In addition, the results of Variance Decomposition (VDC) analysis showed that the contribution of profitability variables and bank size tended to decrease toward the formation of corporate zakat expenditure by BUS until the end of the research period. Keywords: Corporate Zakat Expenditure, Islamic Banks, Profitability, Bank Size, PVECM

Revisited the Relationship Between Economic Growth and Transport Infrastructure in India: An Empirical Study

2021 ◽  
pp. 001946622110635
Author(s):  
Prabir Kumar Ghosh ◽  
Soumyananda Dinda
Keyword(s):  
Economic Growth ◽  
Dynamic Models ◽  
Composite Index ◽  
Principal Component ◽  
Transport Infrastructure ◽  
Positive Contribution ◽  
Model Framework ◽  
Vector Error Correction ◽  
Long Run ◽  
The Relationship

This study empirically re-examines the relationship between transport infrastructure and economic growth in India for the period 1990–2017. Multivariate dynamic models are applied to estimate the relationship between economic growth and different modes of transport infrastructure namely road, rail and air transports in the vector error correction model framework. The results reveal that road and air transports have significant positive contribution to economic growth in the long-run while rail transport is insignificant. This study further examines the said issue using unit free index variables and has constructed a composite index of transport infrastructure using principal component analysis to analyse the nexus between aggregate transport infrastructure and economic growth in India in the post globalisation era. The results of the study indicate the bidirectional causality between aggregate transport infrastructure and economic growth. Results of this study suggest incorporating feedback issue in policy formulations. JEL Codes: C22, O18, R4

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