scholarly journals Research of the synergetic Effects of the Impact of Innovative and Related Macroeconomic Factors on Economic Growth

2021 ◽  
Vol 25 (4) ◽  
pp. 98-109
Author(s):  
B. D. Matrizaev
Keyword(s):  
Economic Growth ◽  
Financial Development ◽  
Technological Innovation ◽  
Positive Impact ◽  
Innovation Policy ◽  
Coordinated Development ◽  
Macroeconomic Factors ◽  
Long Run ◽  
Stable Growth ◽  
The Impact

This article examines the main mechanisms and tools for implementing innovation policy in countries with fastgrowing economies such as China and India. The study aims to explore the causal relationship between innovation, key macroeconomicvariables and economic growth.The author applies the entropy method and adapts the Graymodel to build a system of indices for assessing the coordination of the interaction of technological innovation, financial development and economic growth. The results show that the degree of integration of the financial system into innovation processes has a significant positive impact on the success of innovation, which is measured by patent activity. Our research proves that innovation indirectly affects economic growth through quality of life, infrastructure efficiency, employment, and rade openness. The findings of the research reveal that both economic growth and innovation tend to depend on a number of conjugate variables in the long run: capital, labor, etc. The author concludes that a comprehensive analysis of technological innovation, financial development and economic growth shows that the three-factor relationship has great potential for coordinated development, as a result of which, according to the calculated forecasts, economic growth in fast-growing economies will significantly accelerate its pace in the next five years. The subject of further research may be an analysis of whether the degree of conjugation of connectivity and coordination between the three systems will maintain stable growth at high values and whether they will be able to reach the stage of transformation.

scholarly journals Financial Development, Financial Openness and Economic Growth in Nigeria

2021 ◽  
Vol 11 (3) ◽  
Author(s):  
Christian E. Bassey ◽  
Okoiarikpo Benjamin Okoi ◽  
Ikpe Kingsley Imoh
Keyword(s):  
Economic Growth ◽  
Financial Development ◽  
Financial Distress ◽  
Positive Impact ◽  
Financial Openness ◽  
Insurance Sector ◽  
Distributed Lag ◽  
Long Run ◽  
Short Run ◽  
The Impact

This study examined the impact of financial development and financial openness on economic growth in Nigeria between 1981 and 2019. This was done through the use of the Auto-Regressive Distributed Lag (ARDL) model. In doing this, the ratio of credit to the private sector to the GDP and broad money to narrow money were used as measures of financial development and financial openness respectively. The study found that financial development has a positive and insignificant impact on economic growth in Nigeria in the long and short-run. The study also found that financial openness has a negative and insignificant impact on economic growth in Nigeria in the long-run. The results of the study further revealed that simultaneous existence of financial development and financial openness has an insignificant but positive impact on economic growth in Nigeria in the long-run. Based on the findings, the study recommended that the CBN should increase its efforts towards the regulation and supervision of the financial sector to reduce the incidence of financial distress. The study also recommended that efforts to develop the mortgage and insurance sector and the capital market should be intensified through regulatory improvements, improvements in the instruments in use in the market as well as public enlightenment programs to increase awareness of the potentials of the mortgage, insurance and capital markets. The final recommendation made by the study is that more restrictions should be placed on the inflow of capital in and out of the country to guard against sudden capital flow reversals.

The nexus between financial development and energy consumption: Estimating the role of foreign direct investment, economic growth and urbanization

2021 ◽  
pp. 0958305X2110453
Author(s):  
Jaleel Ahmed ◽  
Shuja ur Rehman ◽  
Zaid Zuhaira ◽  
Shoaib Nisar
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Energy Consumption ◽  
Financial Development ◽  
Latin American ◽  
Direct Investment ◽  
Negative Impact ◽  
Positive Impact ◽  
Supply And Demand ◽  
The Impact

This study examines the impact of financial development on energy consumption for a wide array of countries. The estimators used for financial development are foreign direct investment, economic growth and urbanization. The study employed a panel data regression on 136 countries with time frame of years 1990 to 2019. The model in this study deploys system GMM technique to estimate the model. The results show that financial development has a significant negative impact on energy consumption overall. Foreign direct investment and urbanization has significant impact on energy consumption. Also, economic growth positive impact on energy consumption its mean that economic growth promotes energy consumption. When dividing further the sample into different groups of regions such as Asian, European, African, North/Latin American and Caribbean countries then mixed results related to the nexus between financial development and energy consumption with respect to economic growth, urbanization and foreign direct investment. The policymakers in these different groups of countries must balance the relationship between energy supply and demand to achieving the sustainable economic development.

scholarly journals The effects of environmental regulation and technological innovation on green growth: A theoretical analysis

2018 ◽  
Vol 53 ◽  
pp. 04054
Author(s):  
Xuefei Xu ◽  
Lili Wang ◽  
Shang Chen
Keyword(s):  
Environmental Regulation ◽  
Technological Innovation ◽  
Positive Impact ◽  
Causal Chain ◽  
Mediation Model ◽  
Green Growth ◽  
Positive Role ◽  
Long Run ◽  
The Impact ◽  
Causality Chain

As green growth has attracted a great deal of attention due to the growing concern about the degradation of natural resources and environmental pollution in China, the questions of how to achieve it and which factors drive green growth have become hot topics. Environmental regulation and technological innovation are two main fulcrums in the realization of green growth. However, there is lacking a deeper understanding of the impact of environmental regulation and technological innovation on green growth in a methodological framework. Accordingly, this paper attempts to analyze how these factors affect the implementation of green growth in a model. The findings reveal that (1) in the short term, environmental regulation has inhibited green growth, but has a positive impact on green growth in the long run, (2) technological innovation plays a positive role in green growth improvement, and (3) the causality chain among regulation, technological innovation, and green growth is a typical mediation model. Technological innovation plays an important mediation role in the causal chain. This study not only enriches and deepens theories on green growth, but also successfully implements green growth practices and improve their performance.

scholarly journals The Impact of Industrialization, Trade Openness, Financial Development, and Energy Consumption on Economic Growth in Indonesia

Economies ◽  
2021 ◽  
Vol 9 (4) ◽  
pp. 174
Author(s):  
Khalid Eltayeb Elfaki ◽  
Rossanto Dwi Handoyo ◽  
Kabiru Hannafi Ibrahim
Keyword(s):  
Economic Growth ◽  
Energy Consumption ◽  
Least Squares ◽  
Financial Development ◽  
Correction Term ◽  
Trade Openness ◽  
Ordinary Least Squares ◽  
Distributed Lag ◽  
Long Run ◽  
The Impact

This study aimed to scrutinize the impact of financial development, energy consumption, industrialization, and trade openness on economic growth in Indonesia over the period 1984–2018. To do so, the study employed the autoregressive distributed lag (ARDL) model to estimate the long-run and short-run nexus among the variables. Furthermore, fully modified ordinary least squares (FMOLS), dynamic least squares (DOLS), and canonical cointegrating regression (CCR) were used for a more robust examination of the empirical findings. The result of cointegration confirms the presence of cointegration among the variables. Findings from the ARDL indicate that industrialization, energy consumption, and financial development (measured by domestic credit) positively influence economic growth in the long run. However, financial development (measured by money supply) and trade openness demonstrate a negative effect on economic growth. The positive nexus among industrialization, financial development, energy consumption, and economic growth explains that these variables were stimulating growth in Indonesia. The error correction term indicates a 68% annual adjustment from any deviation in the previous period’s long-run equilibrium economic growth. These findings provide a strong testimony that industrialization and financial development are key to sustained long-run economic growth in Indonesia.

scholarly journals HIGHER EDUCATION AND ECONOMIC GROWTH A CASE STUDY OF PAKISTAN

2010 ◽  
Vol 27 (1) ◽  
Author(s):  
Tariq Mahmood
Keyword(s):  
Higher Education ◽  
Economic Growth ◽  
Positive Impact ◽  
Public Expenditures ◽  
Annual Data ◽  
Unequal Distribution ◽  
Long Run ◽  
Short Run ◽  
The Impact ◽  
Education And Economic Growth

This paper highlights the role of higher education for the economic growth inPakistan. We explore the impact of increase in enrolment at tertiary level on thegrowth rate of income per worker. Estimating a growth model developed byMankiv et. al. (1992), using the annual data of Pakistan, we find a robustrelationship between higher education and economic growth in the long run. Themodel has also shown that investment in fixed capital has positive impact oneconomic uplift. Applying Johansen’s cointegration test, we show that the longrun elasticity of income with respect to capital stock is different from its share inGDP, and increase in the enrolment per unit of effective worker helps inbolstering economic growth. But, like earlier literature we also find statisticallyinsignificant relationship between higher education and GDP per worker. Thereare some fundamental reasons concerning to the ambiguous impact of investingin human capital on economic growth, particularly in the short run in case ofPakistan. First, the sharp increase in enrollment, recently, has been damaging thequality of education. Second, the unequal distribution of educational services hasheld back the efficiency of public expenditures, particularly before the reformsundertaken by higher education commission. Third, the low private return ofeducation has limited the demand for higher education in Pakistan for almost fiftyyears.

scholarly journals Impact of Domestic Public Debt on Economic Growth - An Empirical Study in the Indian Context

2016 ◽  
Vol 6 (4) ◽  
pp. 101-116
Author(s):  
Srinivasa Rao Gangadharan ◽  
Lakshmi Padmakumari
Keyword(s):  
Economic Growth ◽  
Granger Causality ◽  
Positive Impact ◽  
Least Square ◽  
Distributed Lag ◽  
Long Run ◽  
Domestic Debt ◽  
Integration Test ◽  
Ordinary Least Square Regression ◽  
The Impact

This study is an empirical investigation to assess the impact of domestic debt on India’s Economic growth during the period 1980 – 2014. We use data on Domestic Debt, Net Fiscal Deficit, Exports, Savings, Real Gross Domestic Product, Population and Terms of Trade. This study adopts the ARDL Co-Integration and Granger Causality techniques to investigate the relation between the key variables. The study also employs various post estimation tests to validate the fitness and stability of the models based on Gauss Markov assumptions, after employing the ordinary least square regression on various models. We find that debt negatively impacts economic growth while savings has a positive impact. The Auto Regressive Distributed Lag (ARDL) technique used to test the robustness suggests existence of co-integration among the variables. However, none of the long run co-efficient is significant. The granger causality and co-integration test results support the traditional view that debt negatively impacts economic growth.

scholarly journals On the restricted form of energy-growth nexus: a global level VECM approach and the historical structural breaks

2020 ◽  
Vol 14 (6) ◽  
pp. 1205-1220
Author(s):  
Luís Miguel Marques ◽  
José Alberto Fuinhas ◽  
António Cardoso Marques
Keyword(s):  
Economic Growth ◽  
Energy Consumption ◽  
Positive Impact ◽  
Global Level ◽  
Global Energy ◽  
Content Type ◽  
Energy Growth ◽  
Restricted Form ◽  
Long Run ◽  
The Impact

Purpose The purpose of this paper is to focus on global energy consumption using the economic growth nexus, the prevalent energy hypothesis at a global level and the impact of the main historical events assessed for the period from 1965 to 2015. Design/methodology/approach Given the confirmed presence of endogeneity and cointegration between energy consumption and economic growth, a vector error correction with structural dummies model was used. Furthermore, the impulse-response functions and variance decomposition were computed to evaluate the variables’ dynamics. Findings Bi-directional causality running from energy consumption to economic growth was found, both in the short and long-run, supporting the feedback hypothesis. It is proved that the 2008 crisis impacted on the global energy–growth nexus. Furthermore, there is evidence of the impact of the 1990s oil price shock on the nexus. Innovations in energy consumption have a positive impact on economic growth; however, this impact tends to be null in the long run. Practical implications The results suggest that at a global level, any energy policy should be carefully designed in order not to hamper economic growth. Countries should not remain indifferent to the policies that other countries might follow. Very few historical crises impacted on the global energy–growth nexus. Originality/value This paper offers a different approach to the study of the energy–growth nexus. The energy–growth nexus is analysed in the major macroeconomic aggregate. Global variables reveal their relevance as a benchmark in the energy–growth nexus. Furthermore, this paper arrives at some conclusions about how historical crises impact on global relationships.

The impact of financial development, economic growth and energy consumption on environmental degradation

2015 ◽  
Vol 26 (5) ◽  
pp. 666-682 ◽  
Author(s):  
Madhu Sehrawat ◽  
A K Giri ◽  
Geetilaxmi Mohapatra
Keyword(s):  
Economic Growth ◽  
Energy Consumption ◽  
Financial Development ◽  
Environmental Degradation ◽  
Series Data ◽  
Development Economic ◽  
Content Type ◽  
Indian Economy ◽  
Long Run ◽  
The Impact

Purpose – The purpose of this paper is to investigate the impact of financial development, economic growth and energy consumption on environment degradation for Indian economy by using the time series data for the period 1971-2011. Design/methodology/approach – The stationary properties of the variables are checked by ADF, DF-GLS, PP and Ng-Perron unit root tests. The long-run relationship is examined by implementing the Autoregressive Distributed Lag bounds testing approach to co-integration and error correction method (ECM) is applied to examine the short-run dynamics. The direction of the causality is checked by VECM framework and variance decomposition is used to predict exogenous shocks of the variables. Findings – The empirical evidence confirms the existence of long-run relationship among the variables. Financial development appears to increase environmental degradation in India. The main contributors to environmental degradation are: economic growth, energy consumption financial development and urbanization. The results also lend support to the existence of environmental Kuznets curves for Indian economy. Research limitations/implications – The present study suggests that environmental degradation can be reduced at the cost of economic growth or energy efficient technologies should be encouraged to enhance the domestic product with the help of financial sector by improving environmental friendly technologies from advanced economies. Originality/value – This paper proposes to make a contribution to the existing literature through examining the relationship between financial development and environmental degradation in Indian economy during 1971-2011 by employing modern econometric techniques.

scholarly journals DOES FINANCIAL DEVELOPMENT HAMPER ECONOMIC GROWTH: EMPIRICAL EVIDENCE FROM BANGLADESH

2012 ◽  
Vol 14 (3) ◽  
pp. 558-582 ◽  
Author(s):  
Qazi Muhammad Adnan Hye ◽  
Faridul Islam
Keyword(s):  
Economic Growth ◽  
Financial Development ◽  
Principal Component ◽  
Distributed Lag ◽  
Window Method ◽  
Long Run ◽  
Rolling Window ◽  
Augmented Dickey Fuller ◽  
The Stability ◽  
The Impact

The objective of this study is twofold. (a) Construct the first ever financial development index (FDI) for Bangladesh using the principal component method (PCM). (b) Use the FDI to explore the existence of a long run relationship between FDI and economic growth. The Augmented Dickey Fuller and the Ng-Perron unit root tests have been applied to examine the stationarity properties of the series. To explore a long run relation, the Autoregressive Distributed Lag (ARDL) approach to cointegration; and to assess the stability of the parameters, the rolling window regression approach have been used. The results show that the impact of real interest rate (RIR) and FDI on economic growth is negative. Estimates from rolling window method show that FDI and RIR are negatively related to economic growth for the years 1987–1988, 1992–1999, 2002–2006, 2008 and 2009; and 1986–1998, 2006 and 2007, respectively. The results may help policymakers formulate effective financial sector policies as a tool to promote economic growth in Bangladesh.

scholarly journals The impact of economic growth on unemployment in South Africa: 1994 – 2012

2015 ◽  
Vol 12 (4) ◽  
pp. 699-707
Author(s):  
Handson Banda ◽  
Ireen Choga
Keyword(s):  
Economic Growth ◽  
South Africa ◽  
South African ◽  
Time Series Data ◽  
Positive Impact ◽  
Labour Productivity ◽  
Real Effective Exchange Rate ◽  
Series Data ◽  
Long Run ◽  
The Impact

One of the most pressing problems facing the South African economy is unemployment, which has been erratic over the past few years. This study examined the impact of economic growth on unemployment, using quarterly time series data for South Africa for the period 1994 to 2012.Johansen Co-integration reflected that there is stable and one significant long run relationship between unemployment and the explanatory variables that is economic growth (GDP), budget deficit (BUG), real effective exchange rate (REER) and labour productivity (LP). The study utilized Vector Error Correction Model (VECM) to determine the effects of macroeconomic variables thus REER, LP, GDP and BUG on unemployment in South Africa. The results of VECM indicated that LP has a negative long run impact on unemployment whilst GDP, BUG and REER have positive impact. The study resulted in the following policy recommendation: South African government should re-direct its spending towards activities that directly and indirectly promote creation of employment and decent jobs; a conducive environment and flexible labour market policies or legislations without impediments to employment creation should be created; and lastly government should prioritise industries that promote labour intensive. All this will help in absorbing large pools of the unemployed population thereby reducing unemployment in South Africa.

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