The Impact of FDI Inflows and Outflows on Economic Growth: An Empirical Study of some Developed and Developing Countries

2019 ◽  
Vol 6 (1) ◽  
pp. 129-157
Author(s):  
Younis Ali Ahmed ◽  
Roshna Ramzi Ibrahim
Keyword(s):  
Economic Growth ◽  
Developing Countries ◽  
Panel Data ◽  
Fixed Effects ◽  
Positive Impact ◽  
Developed Countries ◽  
Fdi Inflows ◽  
Panel Data Estimation ◽  
The Impact ◽  
Data Estimation

FDI is an investment including a long-term relationship and reflecting a lasting interest and control of a resident entity in one economy. FDI is a combination of capital, technology, marketing and management. Based on the Neoclassical, Exogenous and modern theories FDI has a positive role in accelerating economic growth and development. Many countries are improving their economy in order to attract FDI.  The main objective of this study is to examine the impact of FDI inflows and outflows on economic growth of developed countries such as (USA, UK and France) and developing countries such as (Malaysia, Turkey and Iran) from (1980 to 2017). To accomplish that, ARDL approach and panel data estimation were used. The empirical findings reveal that the FDI inflows and outflows for developed countries (US and UK) have a positive impact on economic growth (GDP), while the FDI inflows of France have a negative impact. Nevertheless, FDI inflows and outflows for developing countries of (Malaysia, Turkey, and Iran) have a positive impact on economic growth. The result of panel data estimation shows that Fixed effects model is appropriate for estimating the parameters. In conclusion, Developing countries should diversify their FDI inflows and outflows to cover all the sectors and they should benefit from the developed countries’ experiences with higher impact of FDI on economic growth.

scholarly journals Added-variable plots for panel-data estimation

2020 ◽  
Vol 20 (1) ◽  
pp. 30-50
Author(s):  
John Luke Gallup
Keyword(s):  
Panel Data ◽  
Fixed Effects ◽  
Regression Line ◽  
Estimation Methods ◽  
Panel Data Estimation ◽  
Regression Parameters ◽  
Added Variable Plots ◽  
Relationship Of ◽  
The Impact ◽  
Data Estimation

In this article, I extend the theory of added-variable plots to three panel-data estimation methods: fixed effects, between effects, and random effects. An added-variable plot is an effective way to show the correlation between an independent variable and a dependent variable conditional on other independent variables. In a multivariate context, a simple scatterplot showing x versus y is not adequate to show the relationship of x with y, because it ignores the impact of the other covariates. Added-variable plots are also useful for spotting influential outliers in the data that affect the estimated regression parameters. Stata can display added-variable plots with the command avplot, but it can be used only after regress. My new command, xtavplot, is a postestimation command that creates added-variable plots after xtreg estimates. Unlike avplot, xtavplot can display a confidence interval around the fitted regression line.

Assessing the Impact of the Factors in the Digital Transformation on the Regional Economic Growth

REGIONOLOGY ◽  
2021 ◽  
Vol 29 (3) ◽  
pp. 486-510
Author(s):  
Tatyana V. Mirolyubova ◽  
Marina V. Radionova
Keyword(s):  
Economic Growth ◽  
Panel Data ◽  
Fixed Effects ◽  
Digital Transformation ◽  
Regional Economic Growth ◽  
Regional Economic ◽  
The Russian Federation ◽  
Regional Product ◽  
The Impact ◽  
Regions Of Russia

Introduction. The scientific problem under consideration is of particular relevance due to the need to assess the impact of the factors in the digital transformation of the regional economy and in the economic growth on the economic development of the regions of the Russian Federation. Based on the research conducted, the article presents an econometric assessment of the dependence of the level of the gross regional product per capita in the regions of Russia on such factors as digital labor and digital capital. Materials and Methods. The authors analyzed panel data from the Federal State Statistics Service covering 87 regions of Russia for the period from 2010 to 2018. The research methodology is based on the use of the Cobb–Douglas production function, statistical and correlation data analysis, as well as on econometric methods for studying panel data. Results. To analyze the impact of the digital transformation of the economy on the regional economic growth of the regions of Russia, various models based on panel data have been considered, such as the pooled model, fixed effects models, random effects models, as well as time-varying effects models using dummy variables. Based on statistical criteria, the best model has been chosen and conclusions have been drawn about the nature of the impact of the digital transformation indicators on the gross regional product per capita in the regions of Russia. Discussion and Conclusion. The results of econometric modeling have demonstrated that digital factors in economic growth (digital labor, digital capital), along with common factors in economic growth (labor and capital), affect the regional economic growth. According to the regional data for the period from 2010 to 2018, the time fixed effects model has proved to be the best model of the impact of the factors in economic growth and digital transformation on the economic development of the regions of the Russian Federation. The research results can be used when developing a public policy aimed at stimulating the digital transformation of the regional economy.

scholarly journals Service Export Sensitivity to Internet Adoption: Evidence From Dynamic Panel Data Analysis

2020 ◽  
Vol 11 (6) ◽  
pp. 259
Author(s):  
Walid Chatti ◽  
Haitham Khoj
Keyword(s):  
Developing Countries ◽  
Panel Data ◽  
Panel Data Analysis ◽  
Developed Countries ◽  
Dynamic Panel Data ◽  
Dynamic Panel ◽  
Internet Adoption ◽  
The Impact ◽  
Dynamic Panel Data Analysis ◽  
Service Export

This study aims to examine the causal linkages relating service exports to internet penetration for 116 countries over the period 2000-2017. Taking into account a wide panel of countries, we apply 2-Step GMM methodology for dynamic panel data models. The results show a bi-directional causality relating service exports to internet adoption for developed countries. For the global panel and developing countries, we find those same results attest a positive relationship between the internet adoption and service exports, but in the opposite way; the impact is very low and not significant. Regarding developing countries, despite the fact that internet positively affects service exports, it is considered less efficient than in developed countries.

scholarly journals How do Poverty and Income Inequality affect Economic Growth in Developing Countries?

2021 ◽  
Vol 4 (2) ◽  
pp. 547-558
Author(s):  
Hamza Saleem ◽  
Fatima Farooq ◽  
Muhammad Aurmaghan
Keyword(s):  
Economic Growth ◽  
Developing Countries ◽  
Panel Data ◽  
Income Inequality ◽  
Negative Impact ◽  
Positive Impact ◽  
Development Indicators ◽  
The Relationship ◽  
Positive Effect ◽  
World Development

The major objective of this research is to examine the relationship between poverty, income inequality and economic growth from some selected developing countries. This study uses panel data for the period of 2002-2015. All the data is taken from world development indicators (WDI). To find out the results, we have used Hausman test an econometrics technique for panel data in this research. The results of the study indicate that poverty and income inequality have a negative impact on economic growth on the other hand Gross capital formation, labor force, total population and government consumption and expenditure have a positive impact on economic growth. The result tells us that changes in these variables have a significant and positive effect on the dependent variable. To achieve the goal of economic growth developing countries should reduce poverty and take meaningful steps to overcome the problem of inequality in the society which can be very helpful in achieving the goal of economic growth.

Wage- and profit-led growth regimes: a panel-data approach

2021 ◽  
Vol 9 (3) ◽  
pp. 394-412
Author(s):  
Guilherme de Oliveira ◽  
Eduardo Prado Souza
Keyword(s):  
Economic Growth ◽  
Developing Countries ◽  
Panel Data ◽  
Latin American ◽  
Structural Characteristics ◽  
Developed Countries ◽  
Domestic Investment ◽  
Growth Regime ◽  
Investment Function ◽  
Trade Channel

The extensive empirical effort made in the growth and distribution literature to estimate whether economic growth is wage- or profit-led has not sufficiently considered the theoretical foundation of the Neo-Kaleckian model. This paper attempts to respect key tenets of the investment function by estimating a panel-data model in which country-specific structural characteristics and possible endogenous relationships in income distribution and economic growth are explicitly considered. The identification strategy is based on several estimates of the capital stock and the rate of capacity utilization for 61 countries over the period between 1995 and 2014. The main results suggest that the growth regime was wage-led in developed countries, while most developing countries exhibited a profit-led growth regime. Interestingly, however, while the profit-led regime occurs through the international trade channel in Latin American countries, in other developing countries, the causality channel is mainly related to the domestic investment function.

The Impact of Population Aging on Economic Growth: Panel Data Evidence from Middle East Countries

2021 ◽  
pp. 67-86
Author(s):  
Abdullah Abdulaziz Bawazir ◽  
Mohamed Aslam ◽  
Ahmad Farid Osman
Keyword(s):  
Economic Growth ◽  
Panel Data ◽  
Middle East ◽  
Fixed Effects ◽  
Population Aging ◽  
Developed Countries ◽  
Ordinary Least Squares ◽  
Dependency Ratio ◽  
Middle East Countries ◽  
The Developed Countries

This study examines the relationship between population aging and economic growth in a panel of 10 selected Middle East countries for the period of 1996–2016. For this purpose, this study uses two different measures of population aging, namely population aged 65 and over and old dependency ratio, to investigate their impacts on economic growth. The study utilizes the three alternative models of static panel data comprised of the pooled ordinary least squares, random effects, and fixed effects. The results of the robust fixed effects model indicate that the population aged 65 and over and the old dependency ratio have a positive effect on economic growth. The finding supports the argument indicating that an aging population does not necessarily adversely affect economic growth in the developing countries as it does in the developed countries. Therefore, the elderly population is not a matter of concern for the Middle East and the mechanisms through which the effect can take place are savings behavior and human capital accumulation of the individuals.

scholarly journals The Impact of Energy Consumption and Economic Growth on Carbon Dioxide Emissions

2020 ◽  
Vol 12 (19) ◽  
pp. 7965
Author(s):  
Oluyomi A. Osobajo ◽  
Afolabi Otitoju ◽  
Martha Ajibola Otitoju ◽  
Adekunle Oke
Keyword(s):  
Economic Growth ◽  
Energy Consumption ◽  
Granger Causality ◽  
Co2 Emissions ◽  
Carbon Dioxide Emissions ◽  
Fixed Effects ◽  
Positive Impact ◽  
Clean Energy ◽  
Cointegration Tests ◽  
The Impact

This study explored the effect of energy consumption and economic growth on CO2 emissions. The relationship between energy consumption, economic growth and CO2 emissions was assessed using regression analysis (the pooled OLS regression and fixed effects methods), Granger causality and panel cointegration tests. Data from 70 countries between 1994–2013 were analysed. The result of the Granger causality tests revealed that the study variables (population, capital stock and economic growth) have a bi-directional causal relationship with CO2 emissions, while energy consumption has a uni-directional relationship. Likewise, the outcome of the cointegration tests established that a long-run relationship exists among the study variables (energy consumption and economic growth) with CO2 emissions. However, the pooled OLS and fixed methods both showed that energy consumption and economic growth have a significant positive impact on CO2 emissions. Hence, this study supports the need for a global transition to a low carbon economy primarily through climate finance, which refers to local, national, or transnational financing, that may be drawn from public, private and alternative sources of financing. This will help foster large-scale investments in clean energy, that are required to significantly reduce CO2 emissions.

Islamic Banking and Economic Growth

2020 ◽  
pp. 86-114
Author(s):  
Bilal Kchouri ◽  
Thorsten Lehnert
Keyword(s):  
Economic Growth ◽  
Developing Countries ◽  
Panel Data ◽  
Economic Performance ◽  
Fixed Effects ◽  
Banking Industry ◽  
Financial Structure ◽  
Islamic Banking ◽  
Total Size ◽  
Macroeconomic Factors

This chapter measures the effect of growth in Islamic Banking assets on economic performance in a sample of 32 developed and developing countries based on data for the period 2000-2017. The findings show that, although Islamic banks are considered small relative to the total size of the financial sector, these are positively correlated with economic growth even after controlling for financial structure, macroeconomic factors and other variables. The outcome is robust across different econometric specifications like pooling OLS, fixed effects, and panel data with over-identified GMM. The results are confirmed on two different indicators of Islamic banking and hold for different periods. Empirical findings confirm theoretical expectations that although Islamic banking still represents a relatively very small share of the financial system, it is growing and generating an economic boost to ensure a stable banking industry.

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