Export, Political Stability, and Growth in Developing-8 Countries

2021 ◽  
Vol 39 (2) ◽  
Author(s):  
Mohammad Nur Rianto Al Arif ◽  
Arisman Arisman ◽  
Darwis Harahap
Keyword(s):  
Economic Growth ◽  
Current Issue ◽  
Political Stability ◽  
Empirical Literature ◽  
Economic Factors ◽  
Accelerate Growth ◽  
The Government ◽  
The Impact ◽  
The Relationship ◽  
A Current

The relationship between growth in export and economic growth is still a current issue in both the theoretical and empirical literature. Besides, there are also non-economic factors that determine economic growth in a country, namely political stability. This study aims to examine the impact of export and political stability on economic growth in D8 member countries. The research on the development of the D8 country's economy is still minimal, so this research expected to be able to contribute to drafting policies for D8 member countries. By using panel regression, this research finds that there is no impact between export on economic growth. However, political stability had an impact on economic growth in developing-8 countries. This result implies that the government should increase political stability to accelerate growth

scholarly journals Export, Political Stability, and Growth in Developing-8 Countries

2020 ◽  
Vol 39 (1) ◽  
Author(s):  
Mohammad Nur Rianto Al Arif ◽  
Arisman Arisman ◽  
Darwis Harahap
Keyword(s):  
Economic Growth ◽  
Current Issue ◽  
Political Stability ◽  
Empirical Literature ◽  
Economic Factors ◽  
Accelerate Growth ◽  
The Government ◽  
The Impact ◽  
The Relationship ◽  
A Current

The relationship between growth in export and economic growth is still a current issue in both the theoretical and empirical literature. Besides, there are also non-economic factors that determine economic growth in a country, namely political stability. This study aims to examine the impact of export and political stability on economic growth in D8 member countries. The research on the development of the D8 country's economy is still minimal, so this research expected to be able to contribute to drafting policies for D8 member countries. By using panel regression, this research finds that there is no impact between export on economic growth. However, political stability had an impact on economic growth in developing-8 countries. This result implies that the government should increase political stability to accelerate growth

scholarly journals Moderating Effect of Political Instability on ICT and Economic Growth Nexus in Kenya: ARDL Bound - Co-Integration Approach

2021 ◽  
Vol 04 (10) ◽  
Author(s):  
Matundura Erickson ◽  
Keyword(s):  
Economic Growth ◽  
Political Instability ◽  
Political Stability ◽  
Moderating Effect ◽  
High Interest ◽  
Long Run ◽  
The Government ◽  
The Impact ◽  
Adf Test ◽  
The Relationship

The government has attempted to target specific macroeconomic factors in order to stimulate economic growth in Kenya through monetary and fiscal policies. Despite these efforts, Kenya's GDP growth is hampered by high interest rates and high interest rate volatility. Kenya's ability to address macroeconomic instability hinges on its ability to increase economic growth. Auxiliary evidence shows that perspectives on the relationship between ICT and economic growth are segmented. The goal of this study was to determine the impact of ICT on economic growth in Kenya, as well as the moderating effect of political instability on the relationship. The research was based on Solow's theory of growth. An explanatory research design was used, with data spanning from 1990-2020 obtained from Kenya Bureau of Statistics. In the empirical analysis, the study used the bound test to test for a long-run relationship and the Autoregressive Distributed Lag model (ARDL) to evaluate the relationship between the variables. The data was subjected to an Augmented Dickey Fuller (ADF) test to determine stationarity.The long run ARDL results indicated that the coefficients of; ICT rate were insignificant . However with the introduction of political instability as the moderator ICT was significant and positively affected economic growth. Political instability moderated the relationship between ICT ( and economic growth. As a result, promoting effective governance should help to improve political stability. The findings of this study will help the government figure out how to address the problem of low economic growth. According to the study, the government should invest in the ICT sector to improve its accessibility and affordability. Additionally, the government should work to improve political stability and good governance by gradually establishing institutions that uphold the rule of law and provide security.

Fiscal Deficit and Economic Growth in Bangladesh

2016 ◽  
Vol 62 (1) ◽  
pp. 31-42 ◽  
Author(s):  
Ebney Ayaj Rana ◽  
Abu N. M. Wahid
Keyword(s):  
Economic Growth ◽  
Budget Deficit ◽  
Negative Impact ◽  
Political Stability ◽  
Ordinary Least Squares ◽  
Policy Implications ◽  
Government Budget ◽  
The Government ◽  
The Impact ◽  
Government Budget Deficit

The economy of Bangladesh is currently going through a period of continuous budget deficit. The present data suggest that the government budget deficit, on average, is nearly 5% of the country’s GDP. This has been true since the early 2000s. To finance this deficit, governments have been borrowing largely from domestic and foreign sources resulting in inflationary pressure on one hand, and crowding out of private investments on the other. During the same period, although the economy has grown steadily at a rate of more than 6%, this growth is less than the potential. This article presents an econometric study of the impact of government budget deficits on the economic growth of Bangladesh. We conduct a time-series analysis using ordinary least squares estimation, vector error correction model, and granger causality test. The findings suggest that the government budget deficit has statistically significant negative impact on economic growth in Bangladesh. Policy implications of our findings include reestablishing the rule of law, political stability in the country, restructuring tax structure, closing tax loopholes, and harmonizing fiscal policy with monetary policy to attract additional domestic and foreign investment.

scholarly journals A time series analysis of determinants of FDI in Afghanistan: Which one matters the most, security or economic growth?

2018 ◽  
Vol 6 (2) ◽  
pp. 19
Author(s):  
Abdul Fareed Delawari
Keyword(s):  
Economic Growth ◽  
Time Series ◽  
Foreign Direct Investment ◽  
Time Series Analysis ◽  
Direct Investment ◽  
Economic Factors ◽  
Market Economic ◽  
The Government ◽  
The Relationship

Afghanistan has been practicing market economic system since 2002. Since then, the government has been initiating different policies and announced various incentives to attract foreign direct investment (FDI) to the country. However, the outcome has not been satisfactory due to several political and economic factors. This paper explores the relationship between security, economic growth and FDI in Afghanistan, using ARDL model. The paper covers a period from 2002 to 2016. The empirical results of this study show that there is a negative long-term relationship between security and FDI. Hence,  the author concludes that, to attract FDI to the country, insuring security should be the top priority of the government of Afghanistan.

scholarly journals Investigating the Relationships between Renewable Energy Consumption, Socio-Economic Factors and Health: A PVAR Analysis from MENA Net Oil Importing Countries

2021 ◽  
Vol 14 (1) ◽  
pp. 151
Author(s):  
Mohamed Kadria ◽  
Sahbi Farhani ◽  
Yosr Guirat
Keyword(s):  
Economic Growth ◽  
Renewable Energy ◽  
Energy Consumption ◽  
Environmental Policy ◽  
Good Governance ◽  
Economic Factors ◽  
Renewable Energy Consumption ◽  
The Government ◽  
The Impact ◽  
Socio Economic Factors

In this paper, we tried to contribute to the previous literature by analyzing the relationship between renewable energy consumption, socio-economic factors and health in the presence of a stringent environmental policy and lobbying power. Using a Panel Vector Auto-Regressive (PVAR) technique, we specifically examine the role of the government effectiveness and the lobbying pressure in moderating the impact of renewable energy consumption on CO2 emissions, economic growth and health factor considering the case of Middle East and North Africa (MENA) Net Oil Importing Countries (NOICs) from 1996 to 2019. Our analysis shows that (i) environmental policy stringency and good governance will induce a rise in the level of renewable energy consumption; (ii) lobbying power and interest groups discourage the renewable energy sector’s development since the add in economic growth of these economies is not oriented towards renewable energy projects; (iii) a rise in renewable energy consumption, perhaps generated by renewable energy policies, should favor the improvement of public health. Finally, the political implications of the findings are summarized and discussed.

scholarly journals Domestic Debt and Economic Growth in Tanzania

2018 ◽  
Vol 1 (1) ◽  
pp. p207
Author(s):  
Josephat Lotto ◽  
Catherine T. Mmari
Keyword(s):  
Economic Growth ◽  
Growth Rate ◽  
Gdp Growth ◽  
Gdp Growth Rate ◽  
Domestic Debt ◽  
Negative Effect ◽  
The Government ◽  
The Impact ◽  
The Relationship ◽  
Positive Effect

The main objective of this paper was to examine the impact of domestic debt on economic growth in Tanzania for the period 1990 to 2015 using Ordinary Least Square (OLS) regression method to estimate the effects. The study finds that there is an inverse but insignificant relationship between domestic debt and the economic growth of Tanzania as measured by GDP annual growth. The inverse relationship between domestic debt and GDP may be caused by different factors such as; increased trend in domestic borrowing, government lenders’ profile dominated by commercial banks and non-bank financial institutions which promotes the “crowding out” effect; the nature of the instruments used by the government ; the improper use of the domestic borrowed funds which may include funding budgetary deficits, paying up principal and matured obligations on debt, developing financial markets as well as fund other government operations. Other control variables relate with the GDP as predicted. For example, Inflation (INF) has a negative effect on the GDP growth rate, but the relationship is not statistically significant, while gross capital formation (GCF) has a positive statistically significant effect on GDP growth rate. Furthermore, foreign direct investment (FDI) showed a positive effect on the GDP growth rate and export (X) has a positive effect on GDP growth rate, and the relationship is statistically significant explaining that if a country applied an export-led growth economic strategy it enjoys the gains of participating in the world market. This means that an increase in export stimulates demand for goods which leads to increase in output, and as a country’s output increases, the economic performance also takes a similar trend. Finally, government expenditure (GE) had a negative effect on the GDP growth rate which may be explained by the increased government expenditures which are funded by either tax or borrowing. Therefore, what is required for countries like Tanzania is to have better debt management strategies as well as prudential financial management while maintaining to remain within the internationally acceptable debt level of 45% of GDP and maintain a GDP growth rate of not less than 5%. It is important for the country to realize from where to borrow from, the tenure, the risks involved and limitations to borrowing and thus set the right balance of combination of both kinds of debt. Another requirement is to properly utilize the borrowed funds. The central government’s objective should be to use the funds in more development-oriented projects that bring positive returns to the economic development.  The government should not only create a right environment and policies for investment to attract investment from domestic and foreign sources but also be cautious about the kind of investments that the foreign investors make.

scholarly journals The Impact of Public Expenditure on Economic Growth: A Review of International Literature

2019 ◽  
Vol 19 (2) ◽  
pp. 81-101
Author(s):  
Sheilla Nyasha ◽  
Nicholas M. Odhiambo
Keyword(s):  
Economic Growth ◽  
Empirical Evidence ◽  
Government Spending ◽  
Public Expenditure ◽  
Negative Impact ◽  
Positive Impact ◽  
Government Expenditure ◽  
Empirical Literature ◽  
The Impact ◽  
The Relationship

Abstract Research background: Although a number of studies have been conducted on the relationship between public expenditure and economic growth, it is difficult to tell with certainty whether or not an increase in public expenditure is good for economic growth. This lack of consensus on the results of the previous empirical findings makes this study of paramount importance as we take stock of the available empirical evidence from the 1980s to date. Purpose: In this paper, theoretical and empirical literature on the relationship between government expenditure and economic growth has been reviewed in detail. Focus was placed on the review of literature that assessed the impact of government spending on economic growth. Research Methodology: This study grouped studies on the impact of public expenditure on economic growth based on their results. Three groups emerged – positive impact, negative impact and no impact. This was followed by a review of each relevant study and an evaluation of which outcome was more prevalent among the existing studies on the subject. Results: The literature reviewed has shown that the impact of government spending on economic growth is not clear cut. It varies from positive to negative; with some studies even finding no impact. Although the impact of government spending on economic growth was found to be inconclusive, the scale tilts towards a positive impact. Novelty: The study provides an insight into the relationship between public expenditure and economic growth based on a comprehensive review of previous empirical evidence across various countries since the 1980s.

Trade Unions, Economic Growth and Politics

1989 ◽  
Vol 31 (3) ◽  
pp. 372-384
Author(s):  
Ignace Ng ◽  
John McCallum
Keyword(s):  
Economic Growth ◽  
Trade Unions ◽  
Empirical Studies ◽  
Union Density ◽  
Primary Objective ◽  
The Subject ◽  
Growth Promoting ◽  
The Government ◽  
The Impact ◽  
The Relationship

Even though identifying the causes of economic growth has been the subject of numerous empirical studies, little is known about the impact of inter-country variations in unionization on differences in economic growth between countries. To fill this apparent gap in the literature, the primary objective of this paper is to examine the influence of trade unions on economic growth in seventeen oECD countries from 1960 to 1979. The results show that the nature of the relationship between trade unions and economic growth depends upon the ideology of the government in power. Under 'non-socialist' governments, increased union density reduces economic growth, whereas under `socialist' governments, a higher level of unionization increases economic growth. This, in turn, implies that governments can have an influence on whether trade unions are growth-inhibiting or growth-promoting. However, because of the limitations in the sample used, additional studies are needed before a consensus can be reached on this issue.

scholarly journals Ṣukūk: A Sharīʿah Compliant Tool for Financing Budget Deficits

2019 ◽  
Vol 32 (1) ◽  
pp. 119-124
Author(s):  
Omar Zuhair Hafiz Omar Zuhair Hafiz
Keyword(s):  
Economic Growth ◽  
Economic Activity ◽  
Budget Deficit ◽  
Negative Relationship ◽  
Budget Deficits ◽  
International Debt ◽  
Key Variables ◽  
The Government ◽  
The Impact ◽  
The Relationship

The lead paper (Pettifor, 2019) discusses an important issue at the macroeconomic level, especially the impact of financing government’s expansionary budget deficit through borrowing. The paper reiterates that claiming that the use of loans to finance the deficit will lead to a decline in the economic activity and will in turn increase the deficit, is a common misconception. In fact, the data on the British economy over a period of a hundred years, as shown in the lead paper, proves that there is a positive relationship between the volume of the budget deficit (and public debt) and economic activity. This, in turn, lead to a decrease in unemployment and thus, eventually contributed to a reduction in the budget deficit. These results have been proven by other researches as well as I have mentioned in this paper. I have also pointed to other researches which indicate that there is a negative relationship between the size of the debt (or the budget deficit), and economic activity, which contradicts the hypothesis of the lead paper. In this brief comment on the lead paper, I also discuss the fact that the global debt phenomenon has become a burning issue. I present a summary of the state of international debt around the world and discuss its impact on the economies of many countries that repay their debts in hard currencies. I argue that this situation must be taken into consideration when discussing the impact of borrowing to finance the government budget deficit to stimulate economic growth. I also propose that these effects on the borrowing economies should also be analyzed in the event that these international loans are in the form of Islamic instruments (ṣukūk) which are increasingly being used by some governments as a tool to finance their budget deficits, especially among the OIC countries. However, because it is a modern financing tool, several years need to pass before we can viably test the relationship between them and economic growth and the extent of their impact on key variables at the macro level of the economy.

scholarly journals ANALISIS FAKTOR-FAKTOR YANG MEMENGARUHI KORUPSI DI KAWASAN ASIA PASIFIK

2018 ◽  
Vol 5 (2) ◽  
pp. 32-44
Author(s):  
Happy Febrina Hariyani ◽  
Dominicus Savio Priyarsono ◽  
Alla Asmara
Keyword(s):  
Economic Growth ◽  
Urban Population ◽  
Institutional Quality ◽  
Political Stability ◽  
Developed Countries ◽  
Asia Pacific ◽  
Asia Pacific Region ◽  
The Government ◽  
High Level ◽  
The Impact

The phenomenon of corruption is a big problem faced by countries with rapid economic development. The problem is not only faced by developing countries, but also in some developed countries. The factors that cause corruption classified into three broad categories--economic, political and socio-cultural. The high level of corruption in a country can also cause high cost economy that could hamper economic growth through the obstacles that occur in the investment. The purpose of this study is to analyze the factors that affect the level of corruption and to analyze the impact of corruption on economic growth in the Asia Pacific region. The results show that public budget, political stability, and urban population affect the level of corruption. Low institutional quality, indicated by the failure of the government (corruption), has a bad influence on economic growth performance.

Sign in / Sign up

Export Citation Format

Share Document