Is foreign trade relevant to economic growth in the SADC region?

GIS Business ◽  
2019 ◽  
Vol 14 (6) ◽  
pp. 17-54
Author(s):  
David Damiyano ◽  
Nirmala Dorasamy
Keyword(s):  
Economic Growth ◽  
Foreign Trade ◽  
Market Access ◽  
Empirical Studies ◽  
Theoretical Models ◽  
Infrastructure Development ◽  
Growth Performances ◽  
Real Market ◽  
Export Industries ◽  
The Relationship

The relationship between foreign trade and economic growth is one of the controversial subjects in  economics. Theoretical models have been  developed  and  empirical  studies have been carried out  but the results obtained are mixed and up to now, there is no unique answer with regard to the same study. This paper examines the relationship between foreign trade and economic growth taking SADC countries as the laboratory test ground. Growth performances have not been consistent within the SADC region and  weak regional trade performance is by the virtue of the fact that  they focused  more on elimination of trade barriers instead of  concentrating  on  the  development  of  the productive capacities necessary for trade. The research used panel data gathered from SADC trade database, International Monetary Fund, and World Bank. Using panel regression analysis of  15 SADC member states, the paper demonstrates that foreign trade promotes economic growth but it was found to have a moderate effect on growths of SADC countries. Based on the findings, the paper recommends SADC member countries to devise energetic industrial policies geared towards developing export industries and also to implement the SADC Regional Infrastructure Development Master Plan in order to improve trade within the region so as to realise real market access benefits brought about by trade liberalization.

The Impact of Public Debt on Economic Growth: A Review of Contemporary Literature

2018 ◽  
Vol 45 (4) ◽  
pp. 339-357
Author(s):  
Talknice Saungweme ◽  
Nicholas M. Odhiambo
Keyword(s):  
Economic Growth ◽  
Public Debt ◽  
Positive Impact ◽  
Empirical Studies ◽  
Theoretical Models ◽  
Empirical Literature ◽  
Long Run ◽  
Negative Effect ◽  
The Impact ◽  
The Relationship

This article provides a detailed survey of existing theoretical and empirical literature on the impact of public debt on economic growth in both developing and developed economies. The aim of the article is to add to the existing debate on the relationship between public debt and economic growth in world economies. The survey finds diverse and, in some cases, inconsistent evidence on the relative impact of public debt on economic growth. Although the majority of the surveyed literature supports the negative effect of public debt on economic growth, several other studies have found a long-run positive impact of public debt on economic growth through the fiscal multiplier effect. The article also found that a few other studies support the Ricardian Equivalence Hypothesis (REH), which states that the relationship between public debt and economic growth is nonexistent. On balance, the article also found that there is a growing body of empirical evidence, which supports the presence of threshold effects in the relationship between public debt and economic growth. Overall, it concludes that theoretical models and empirical studies yield inconclusive results depending on a set of heterogeneous factors, including the level of development of the sampled countries, data coverage, methodology used, and the researchers’ choice of control variables, among other factors. This literature survey differs predominantly from other earlier studies in that it provides a comprehensive review of the linkage between government debt and economic growth, in addition to disentangling public debt into two components, domestic and foreign, and expounding on their relative effects on economic growth.

Productivity and Economic Development

2018 ◽  
pp. 752-780
Author(s):  
Hak K. Pyo
Keyword(s):  
Economic Growth ◽  
Economic Development ◽  
Natural Capital ◽  
Empirical Studies ◽  
Theoretical Models ◽  
Intangible Capital ◽  
Starting Point ◽  
The Relationship ◽  
Country Specific ◽  
Productivity Enhancement

This chapter provides both theoretical and empirical reviews on productivity and economic development. Its starting point is the surveys on literature that stress the importance of productivity enhancement to fill the so-called twin gaps of development. The first part of the chapter reviews the concept papers of productivity, such as labor productivity and total factor productivity, and the measurement issues in productivity and growth accounting. The second part of the chapter reviews theoretical models on the relationship between productivity and economic growth and development. The third part of the chapter reviews empirical studies on productivity-development linkage and recent country-specific case studies on how productivity enhancement has contributed to economic growth and income distribution. The roles of human capital, institutions, intangible capital, and natural capital are emphasized in enhancing productivity in many underdeveloped and developing countries.

scholarly journals LA COMPOSICIÓN DE LA CAPACIDAD TRIBUTARIA: EVIDENCIA PARA UN PANEL DE PAÍSES

2021 ◽  
Vol 81 (319) ◽  
pp. 63
Author(s):  
Nancy Ivonne Muller Durán
Keyword(s):  
Economic Growth ◽  
Economic Development ◽  
Foreign Trade ◽  
Economic Activity ◽  
Income Levels ◽  
Panel Models ◽  
Fiscal Reforms ◽  
Para Determinar ◽  
The Relationship ◽  
Tax Capacity

<p>En este documento analizo la relación que existe entre el crecimiento económico, el comercio exterior y la capacidad tributaria. Sostengo que los impuestos no necesariamente distorsionan la eficiencia y que dependen de la actividad económica. Para documentar la hipótesis realizo cuatro modelos panel cointegrados para un grupo de 55 países y su subsecuente división de acuerdo con tres niveles de ingreso para el periodo de 1990-2018. Los resultados obtenidos muestran que el crecimiento económico es una condición <em>sine qua non</em> para determinar la capacidad recaudatoria pero no es suficiente en aquellos países con desigualdad económica. Por lo tanto, es necesario estimular el desarrollo económico y promover reformas fiscales progresivas.</p><p> </p><p align="center">THE COMPOSITION OF TAX EFFORT: EVIDENCE FOR A PANEL OF COUNTRIES.</p><p align="center"><strong>ABSTRACT</strong></p><p>This document analyzes the relationship between economic growth, foreign trade and tax capacity. It is argued that taxes do not distort efficiency and that they depend on economic activity. In order to empirically support our hypothesis, four cointegrated panel models are carried out for a group of 55 countries and their subsequent division according to three income levels for the period 1990-2018. The results obtained show that economic growth is a <em>sine qua non</em> condition for determining tax capacity, but it is not enough in countries plagued with economic inequality. Therefore, it is necessary to stimulate economic development and promote progressive fiscal reforms.</p>

scholarly journals Letters: Complex response of beta diversity to dispersal in meta-community models

2021 ◽  
Author(s):  
Muyang Lu
Keyword(s):  
Community Assembly ◽  
Beta Diversity ◽  
Island Biogeography ◽  
Empirical Studies ◽  
Biotic Interactions ◽  
Theoretical Models ◽  
Community Model ◽  
Metacommunity Dynamics ◽  
The Relationship ◽  
Local Dispersal

AbstractDispersal is one of the most important drivers of community assembly. The conventional belief that dispersal leads to biotic homogenization (lower beta diversity) has been recently challenged by an experiment conducted in nectar microbes (Vannette & Fukami, 2017), showing that dispersal could lead to community divergence. In this paper, I re-examined the relationship between beta diversity and local dispersal in a range of theoretical models: from the classic island biogeography model and meta-population model to a meta-community model that incorporates biotic interactions. I find that the emergence of hump-shaped beta diversity-dispersal relationship is closely related to local dispersal (rather than global dispersal), non-neutrality and biotic interactions. The results reveal rich metacommunity dynamics in relation to dispersal types and biotic interactions which might be overlooked in previous theoretical and empirical studies. The findings call for more realistic experimental manipulations on dispersals in future community assembly studies.

scholarly journals Determinants Of Economic Growth: Evidence From American Countries

2010 ◽  
Vol 9 (5) ◽  
Author(s):  
Hong Zhuang ◽  
Robert St. Juliana
Keyword(s):  
Economic Growth ◽  
Population Growth Rate ◽  
Capital Expenditure ◽  
Empirical Studies ◽  
Trade Openness ◽  
Solow Model ◽  
Per Capita Gdp ◽  
Per Capita ◽  
Determinants Of Economic Growth ◽  
The Relationship

This paper explores determinants of economic growth using variables from traditional Solow model and recent empirical studies. The study covers data on American countries during the period 1995-2006.  The estimates show that per capita, GDP growth is positively related to capital expenditure, primary completion rate and trade openness and the relationship is statistically significant. Furthermore, population growth rate and investment in research and development have positive impacts on economic growth, yet the effects are not significant.

scholarly journals The Role Of Literacy In The Economic Growth Of Cameroon

2018 ◽  
Vol 14 (22) ◽  
pp. 25
Author(s):  
Dudjo Yen G. Boris ◽  
Sonkeng Germain ◽  
Njong Mom Aloysius ◽  
Tafah Edokat O. Edward
Keyword(s):  
Economic Growth ◽  
Significant Relationship ◽  
Poverty Reduction ◽  
Empirical Studies ◽  
Reduction Process ◽  
Literacy Rate ◽  
The World ◽  
The Relationship ◽  
Positive Effect

This paper focuses on how education contributes to economic growth. That is to say that there is a significant relationship between the variables of education and the economic growth of Cameroon. Education is therefore a priority for all nations. This shows the prominent place it occupies in the Constitution of almost every state. There are several studies that have focused on the relationship between education and economic growth of the microeconomic perspective, as macroeconomic, both theoretically and empirically. Empirical studies, which have been carried out everywhere around the world, do not agree with the fact that education has a positive effect on economic growth. The estimation results show that literacy rate, however, remains ambiguous and contradictory when OLS is going to GMM. Investing in Literacy is a challenge for development and it is the heart of poverty reduction process at all levels.

scholarly journals The human capital rationale behind the economic growth of the European Union countries: application of the advanced methods to enhance an efficiency of national human capital stocks

2019 ◽  
Vol 27 (1) ◽  
pp. 35-48
Author(s):  
Iuliia A. Stabinskaite
Keyword(s):  
Economic Growth ◽  
European Union ◽  
Human Capital ◽  
Economic Development ◽  
Theoretical Models ◽  
The European Union ◽  
National Human ◽  
Dimensional Assessment ◽  
The Relationship ◽  
The Eu

Human capital is an important factor of economic growth, as has been underlined by recent theoretical models. The main goal of this article is to elucidate the relationship between human capital and dynamics of economic growth in the European Union (EU). For the purposes of this article human capital is defined as knowledge, skills as well as other individual factors which lead to higher productivity. Therefore, the greatest attention is focused on the multi-dimensional assessment of human capital in the processes of economic development of the European countries. A detailed evaluation of human capital in the EU is represented at interregional and international levels. Furthermore, author suggests a guidance for designing and planning strategies aimed at sustainable economic development by using the model predictive control algorithms.

scholarly journals THE THEORETICAL APPROACHES TO ASSESSING EFFECTS OF MILITARY EXPENDITURE ON GROWTH

2018 ◽  
Vol 6 (3) ◽  
pp. 1-5
Author(s):  
Гаяне Арутюнян ◽  
Gayane Harutyunyan
Keyword(s):  
Economic Growth ◽  
Statistical Analysis ◽  
Empirical Studies ◽  
Military Expenditure ◽  
Economic Thought ◽  
Gdp Growth ◽  
Theoretical Approaches ◽  
Military Expenditures ◽  
To Come ◽  
The Relationship

Research of the relationship between economic growth and military expenditures has been one of the central issues in the economic debates since 1980s, but the theorists failed to come to consensus on this issue via empirical studies. Hence, studies of some statistical evidence suggest logical question: whether military expenditures contribute to economic growth, or on the contrary, economic growth enables to increase countries military spending? In this paper, we have analyzed the main economic thought school’s approaches to assessment of military expenditure impact on growth, in order to reveal the mechanisms of this impact. Then by statistical analysis we have found out how the relationship between military expenditure and GDP was manifested in Armenia. Based on the analysis results, we concluded that military expenditures haven’t stimulated GDP growth in Armenia.

scholarly journals THE MAIN PRINCIPLES OF MODELLING THE INTERACTION BETWEEN TRANSPORT INFRASTRUCTURE DEVELOPMENT AND ECONOMY

Transport ◽  
2005 ◽  
Vol 20 (3) ◽  
pp. 117-122 ◽  
Author(s):  
Algirdas Jurkauskas ◽  
Diana Micevičiene ◽  
Jurgita Prunskiene
Keyword(s):  
Economic Growth ◽  
Economic Theory ◽  
Work Stress ◽  
Transport Infrastructure ◽  
Infrastructure Development ◽  
Infrastructure Projects ◽  
Ecological Problems ◽  
Additional Production ◽  
The Relationship ◽  
Main Shortcoming

The practical need of measuring the interaction between transport infrastructure development and economic growth is determined by the neccesity to justify huge invetsments in infrastructure projects. As it was established the actualify of the topic analysed is proved by many authors working in the field. However, the main shortcoming in the presented work (stress only on the relationship transport infrastructure ‐ economy expressed in the terms of additional production of GDP) is the existence of the playback between the interdependent items. Considering the practice to be cardinally inadequate in the terms of economic theory and modern attitude to ecological problems,the authors of the article present the main principles of quantitive evaluation of the aforementioned realationship taking into account overlaping links of the categories analysed.

scholarly journals The Relationship Between Human Development, Tourism and Economic Growth: Evidence From Malaysia

2019 ◽  
Vol 10 (5) ◽  
pp. 96
Author(s):  
Yan-Teng Tan ◽  
Pei-Tha Gan ◽  
Mohd Yahya Mohd Hussin ◽  
Norimah Ramli
Keyword(s):  
Economic Growth ◽  
Human Development ◽  
Empirical Studies ◽  
Well Being ◽  
Policy Makers ◽  
Remarkable Feature ◽  
Long Run ◽  
The Social ◽  
Social And Cultural Factors ◽  
The Relationship

A remarkable feature of empirical studies is that not many research works investigate the relation between human development and tourism. Although gross domestic product may replace human development to measure economy progress and human well-being in relation to tourism, however, this definition, is narrow, limits to economic side, and ignores the social and cultural factors. To overcome this shortcoming, this study examines the relationship between human development, tourism and economic growth in Malaysia. By using different cointegration approaches, the results indicate that tourism is positively related to human development in the long run. The finding suggests that the known relationship may serve as a guide to policy makers to achieve better development of social and cultural in order to promote the growth.

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