scholarly journals Impact of FDI on Provincial Economic Growth in Vietnam

2014 ◽  
Vol 221 ◽  
pp. 65-84
Author(s):  
THÀNH SỬ ĐÌNH ◽  
Tiến Nguyễn Minh
Keyword(s):  
Economic Growth ◽  
Human Resources ◽  
Granger Causality ◽  
Trade Openness ◽  
Private Investment ◽  
Granger Causality Test ◽  
Controversial Issue ◽  
Causality Test ◽  
The Impact

The impact of foreign direct imvestment (FDI) on economic growth is still a highly controversial issue as remarked by many researchers (Aitken et al.; 1997; Carkovic & Levine, 2002; Bende-Nabende et al., 2003; Durham, 2004; and Hsiao, 2006). Using a panel dataset of 43 provinces in Vietnam during 1997 – 2012 and the Granger causality test by Arellano-Bond GMM and PMG estimation, this paper shows that: (i) FDI does Granger-cause private investment, human resources, taxation, infrastructure, trade openness and local technology; (ii) FDI has a positive impacts on provincial economic growth in the long term; and (iii) FDI flows vary over provinces due to differences in geographical conditions and level of development.

scholarly journals The impact of agriculture and renewable energy on climate change in Central and East European Countries

2020 ◽  
Vol 66 (No. 10) ◽  
pp. 447-457
Author(s):  
Nicoleta Mihaela Florea ◽  
Roxana Maria Badircea ◽  
Ramona Costina Pirvu ◽  
Alina Georgiana Manta ◽  
Marius Dalian Doran ◽  
...  
Keyword(s):  
Economic Growth ◽  
Renewable Energy ◽  
Greenhouse Gas Emissions ◽  
Greenhouse Gas ◽  
Granger Causality ◽  
Granger Causality Test ◽  
Causality Test ◽  
Gas Emissions ◽  
The Impact

According to the objectives of the European Union concerning the climate changes, Member States should take all the necessary measures in order to reduce the greenhouse gas emissions. The aim of this study is to identify the causality relations between greenhouse gases emissions, added value from agriculture, renewable energy consumption, and economic growth based on a panel consisting of 11 states from the Central and Eastern Europe (CEECs) in the period between 2000 and 2017. The Autoregressive Distributed Lag (ARDL) method was used to estimate the long-term relationships among the variables. Also a Granger causality test based on the ARDL – Error Correction Model (ECM) and a Pairwise Granger causality test were used to identify the causality relationship and to detect the direction of causality among the variables. The results obtained reveal, in the long term, two bidirectional relationships between agriculture and economic growth and two unidirectional relationships from agriculture to greenhouse gas emissions and renewable energy. In the short term, four unidirectional relationships were found from agriculture to all the variables in the model and one unidirectional relationship from renewable energy to greenhouse gas emissions.

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.

scholarly journals Trade Openness and Economic Growth of Tanzania

2019 ◽  
pp. 1-10
Author(s):  
Salama Yusuf ◽  
Moza R. Omar
Keyword(s):  
Economic Growth ◽  
Causal Relationship ◽  
Granger Causality ◽  
Trade Openness ◽  
Granger Causality Test ◽  
Economic Problem ◽  
Causality Test ◽  
Foreign Earnings ◽  
Long Run ◽  
The Impact

Trade openness is very crucial in the achievement of any rapid economic take off for any country. Realizing that in 1996, Tanzania government initiated economic recovery program to address the economic problem. One among them was Trade liberalization implementation. This paper examines the impact of trade openness on economic growth in Tanzania for the period 1981 to 2017.  The study utilized co-integration and Vector Error Correction Mechanism (VECM) Approach to test the relationship between trade openness and economic growth and granger causality test to examine the causal relationship between variable. The unit root tests showed that all variables were integrated after taking first difference, the Johansen co-integration result showed that the variables were co-integrated. The VECM estimate showed that there is positive long run relationship between trade openness and economic growth in Tanzania over the study period, this positive result of trade openness is possibly attributable to the fact that Tanzania unlocked its borders to international trades. In addition, granger causality test revealed that, there is no causal relationship between Trade openness and economic growth in Tanzania. Based on these findings, this study recommended that Government should encourage the production of domestic products for export purpose by developing more domestic industries and attracts more investors in the economy which will lead to increase the per capita income as well as foreign earnings that will promote economic growth of Tanzania.

scholarly journals Trade Facilition and Economic Growth in Developing Countries: Using A Static and Dynamic Framework

2017 ◽  
Vol 7 (2) ◽  
pp. 270
Author(s):  
Sheereen Fauzel
Keyword(s):  
Economic Growth ◽  
Developing Countries ◽  
Granger Causality ◽  
Growth Modeling ◽  
Private Investment ◽  
Granger Causality Test ◽  
Causality Test ◽  
Trade Facilitation ◽  
Dynamic Framework ◽  
Gmm Estimates

Analysing the literature, it is found that empirical evidences on the link between trade facilitation and economic growth for developing countries is very scarce. The present study investigated whether trade facilitation has contributed to the economic growth of a sample of 23 developing countries over the period 2007-2014. Results from the analysis highlight the importance of trade facilitation as a crucial determinant of development. Moreover, even trade levels have demonstrated to have an important role to play in boosting growth levels. Private investment is also seen to be an important driver of growth and the importance of education, are also acknowledged by the results. The GMM estimates confirmed these results and further indicated the presence of dynamism in growth modeling. Moreover, the granger causality test shows that there is a uni directional causality flowing from trade facilitation to economic growth.

scholarly journals The Relation between Tourism and Economic Growth: A Case of Saudi Arabia as an Emerging Tourism Destination

2020 ◽  
Vol 3 (4) ◽  
pp. 29-47
Author(s):  
Lamia Jamel
Keyword(s):  
Economic Growth ◽  
Saudi Arabia ◽  
Granger Causality ◽  
Co2 Emissions ◽  
Financial Development ◽  
Positive Impact ◽  
Trade Openness ◽  
Granger Causality Test ◽  
Annual Data ◽  
Causality Test

This paper examines empirically the relation between tourism and economic growth in Saudi Arabia. The authors try to justify how tourism contributes to the economic growth of Saudi Arabia. There are applied descriptive statistics, unit root test, VAR model and Granger Causality test as an econometric methodology to examine the connection between tourism and economic growth in Saudi Arabia for the annual data in the period from 1990 to 2018. The main empirical results of the study find out that tourism affects positively the economic growth in Saudi Arabia. Also, there is found a positive nexus among tourism and economic growth. Furthermore, CO2 emissions and financial development impact positively the tourism sector, while trade openness predicts a negative effect on tourism. Additionally, CO2 emissions, financial development, and trade openness have a positive impact on economic growth in Saudi Arabia. Finally, the Granger causality test provides evidence of bidirectional nexus between tourism and economic growth in Saudi Arabia. This paper contributes to the current research by explaining the causal nexus among tourism and economic growth in Saudi Arabia during the period from 1990 to 2018, applying a vector autoregressive model and Granger Causality.

scholarly journals Economic Growth, Domestic Investment, Real Exchange Rate and Trade Openness in India: A multi-cointegration analysis

2016 ◽  
Vol 12 (3) ◽  
pp. 169-184
Author(s):  
Md. Samsur Jaman
Keyword(s):  
Economic Growth ◽  
Exchange Rate ◽  
Real Exchange Rate ◽  
Granger Causality ◽  
Trade Openness ◽  
Granger Causality Test ◽  
Domestic Investment ◽  
Causality Test ◽  
Long Run ◽  
Short Run

This study examines the relationships between economic growth, gross domestic investment, real exchange rate and trade openness in Indian Economy using the Johansen –Juselius cointegration test and VEC Granger causality test. The results suggest that there exists a long-run relationship among the variables. All the estimated coefficients of the long-run equation have the correct positive signs and significant at least at the 5 per cent level. Specifically, in the long run, a 1% increase in Gross Domestic Investment (GDI) increases 0.066% in economic growth. Similarly, a 1% increase in trade openness leads to 0.082% increase in economic growth and a 1% increase in real exchange rate leads to 0.26% increase in economic growth. Thus, in the long run, Gross Domestic Investment (GDI), trade openness and real exchange rate have positively impact on economic growth. The results from the VEC Granger causality test suggest that in the short run only economic growth has short run impact on Gross Domestic Investment (GDI). The other variables have no short run impact on each other. Thus, there is a unidirectional causality from economic growth to GDI, but there is no feedback effect.

scholarly journals Does Tourism Affect Economic Growth of China? A Panel Granger Causality Approach

2021 ◽  
Vol 13 (3) ◽  
pp. 1349
Author(s):  
Yong Su ◽  
Jacob Cherian ◽  
Muhammad Safdar Sial ◽  
Alina Badulescu ◽  
Phung Anh Thu ◽  
...  
Keyword(s):  
Economic Growth ◽  
Granger Causality ◽  
Empirical Support ◽  
Strong Relationship ◽  
Tourism Industry ◽  
Causality Test ◽  
Data Set ◽  
Economic Development And Growth ◽  
The Impact

The main purpose of the current study is to investigate if tourism affects economic growth of China. The data set has been acquired from the Beijing Municipal Bureau of Statistics, and the time span of the data set takes into account a 20-year time period, from 2000 to 2019. To determine the strength of the above-mentioned relationship previous models that have been used for this research are mainly VAR (vector auto-regression) and VECM (vector error correction) models. The VAR and VECM models have been conducted together with the Granger causality test. The internal revenue generated from tourism-related activities is taken as being the main indicator for the tourism industry, while economic growth is determined by GDP (gross domestic product). We support the above-mentioned notion, as we found that a strong relationship exists between the development of the tourism industry and economic growth. Moreover, our analysis also indicates that this industry has a major impact on long-term economic growth in the region as well. This study thus provides further support to the existing literature on the topic of tourism and the impact that tourism-related activities have upon economic development and growth. The existence and the impact of tourism-related activities upon long-term economic growth were confirmed by the results of the VAR models. At the same time, the unidirectional results of VECM models have confirmed the existence of economic growth in the short term. In our case, the cardinal relationship between the development of the tourism industry and the economic growth in the Beijing region of China have managed to provide strong empirical support to the earlier stated notions and to the literature alike.

Study of the Relationship among Economic Growth, Export and Energy Consumption in China

2014 ◽  
Vol 694 ◽  
pp. 542-546
Author(s):  
Xiao Wei Yang
Keyword(s):  
Economic Growth ◽  
Energy Consumption ◽  
Granger Causality ◽  
Granger Causality Test ◽  
Analytical Framework ◽  
Test Method ◽  
Causality Test ◽  
Equilibrium Relationship ◽  
The Relationship

This paper uses co-integration theories and Granger causality test method to analyze the inter-linkages among China's economic growth, export and energy consumption within a unified analytical framework. The results show that there exists a long-term equilibrium relationship between economic growth, exports and energy consumption, and economic growth and exports both promote energy consumption in the long term. Furthermore, there exist bi-directional Granger causality between economic growth and energy consumption, export and energy consumption respectively.

scholarly journals Effect of Foreign Direct Investment on Bangladesh Economy: a Time Series Analysis from 1972 to 2013

2020 ◽  
Author(s):  
Rumana Rashid ◽  
Sk. Sharafat Hossen
Keyword(s):  
Economic Growth ◽  
Time Series ◽  
Foreign Direct Investment ◽  
Granger Causality ◽  
Direct Investment ◽  
Export Performance ◽  
Granger Causality Test ◽  
Causality Test ◽  
Long Run ◽  
The Impact

This study investigates the impact of Foreign Direct Investment (FDI) on economic growth and examines the causality between FDI and economic growth in Bangladesh during 1972-2013. Gross Domestic Product (GDP), export performance (EXP), Foreign Direct Investment (FDI), and Gross Fixed Capital Formation (GFCF) are considered to capture the objective of the study. The study methodology includes some systematic steps. As the data used in the study is time-series in nature, the author employs unit root tests, and in this case, Augmented Dickey-Fuller (ADF) and Phillips-Perron (PP) tests are used. Then Johansen’s cointegration test, Granger causality test, regression with Newey-West Standard Error and Vector Error Correction Model (VECM) are applied. By using the ADF and PP test the study reveals that the variables of four-time series are integrated of I (1) i.e. they are stationary at first difference. Regression analysis result demonstrates that FDI has a positive effect on economic growth. The Granger Causality test discloses that there is a unidirectional relationship between FDI and economic growth. But the VECM estimation finds that in the long run FDI negatively affects economic growth.

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