scholarly journals Macroeconomic Determinants of Economic Growth in Pakistan

1998 ◽  
Vol 37 (2) ◽  
pp. 125-148 ◽  
Author(s):  
Zafar Iqbal ◽  
Ghulam Mustafa Zahid
Keyword(s):  
Economic Growth ◽  
Physical Capital ◽  
Output Growth ◽  
Sustainable Growth ◽  
Macroeconomic Factors ◽  
Quantitative Evidence ◽  
Long Run ◽  
Regression Framework ◽  
Macroeconomic Determinants ◽  
Determinants Of Economic Growth

The main purpose of this paper has been to examine the effects of some of the key macroeconomic variables on Pakistan’s economic growth. Multiple regression framework is used to separate out the effects of key macroeconomic factors on growth over the period 1959-60 to 1996-97. The quantitative evidence shows that primary education to be an important prerequisite for accelerating growth. Similarly, increasing the stock of physical capital would help to contribute to growth. The empirical results also suggest that openness of Pakistan’s economy promotes economic growth. Alternatively, the budget deficit is negatively related to both output growth variables. The external debt is also negatively related to growth, suggesting that relying on domestic resources is the best alternative to finance growth. However, the results presented in this study reinforce the importance of sensible long-run growth-oriented policies to obtain sustainable growth.

scholarly journals Macroeconomic Determinants of Economic Growth: A Review of International Literature

2016 ◽  
Vol 11 (2) ◽  
pp. 33-47 ◽  
Author(s):  
Themba G. Chirwa ◽  
Nicholas M. Odhiambo
Keyword(s):  
Economic Growth ◽  
Monetary Policy ◽  
Human Capital ◽  
Fiscal Policy ◽  
Empirical Studies ◽  
Physical Capital ◽  
Developed Countries ◽  
Empirical Literature ◽  
Macroeconomic Determinants ◽  
Determinants Of Economic Growth

AbstractThe paper conducts a qualitative narrative appraisal of the existing empirical literature on the key macroeconomic determinants of economic growth in developing and developed countries. Much as other empirical studies have investigated the determinants of economic growth using various econometric methods, the majority of these studies have not distinguished what drives or hinders economic growth in developing or developed countries. The study finds that the determinants of economic growth are different when this distinction is used. It reveals that in developing countries the key macroeconomic determinants of economic growth include foreign aid, foreign direct investment, fiscal policy, investment, trade, human capital development, demographics, monetary policy, natural resources, reforms and geographic, regional, political and financial factors. In developed countries, the study reveals that the key macroeconomic determinants that are associated with economic growth include physical capital, fiscal policy, human capital, trade, demographics, monetary policy and financial and technological factors.

scholarly journals Sectoral output Volatility and Economic growth in Ethiopia

2020 ◽  
Author(s):  
Adisu Abebaw
Keyword(s):  
Economic Growth ◽  
Capital Stock ◽  
Trade Balance ◽  
Output Growth ◽  
Series Data ◽  
Output Volatility ◽  
Sectoral Output ◽  
Long Run ◽  
Working Age ◽  
Determinants Of Economic Growth

Abstract In this study we examined the determinants of economic growth, and the effect of sectoral output volatility on economic growth of Ethiopia using national bank of Ethiopia (NBE) and the World Bank (WB) time series data ranging from 1981 to 2018. We included capital stock, working age population, trade balance and, sectoral output volatility as an explanatory variable. The sectoral output volatility was computed using Exponential General Autoregressive Conditional Heteroscedasticity (EGARCH) technique. Estimating three different ARDL models, we found long run relationship between economic growth and explanatory variables. From the long run ARDL model economic growth was positively and statistically significantly affected by capital stock—both in the long run and in the short run. In the long run trade balance (which has been negative throughout the study period) was found to have negative and statistically significant effect on economic growth. In the long-run volatility of industrial and service sector output growth was found to have negative and statistically significant effect on economic growth of Ethiopia. However, the study proved that the working age of population had no statistically significant effect on economic growth of Ethiopia. As the economy exhibits structural transformation from the agricultural to modern sectors the relative significance of sectors also change. In recent years the role of agriculture to Ethiopian economy, particularly in terms contribution to the national GDP has been declining—indicating the growing importance of service and industrial sectors. Therefore, smoothening and maintaining the positive sectoral output growth is advisable for the betterment of the economy. In addition, balancing the foreign trade, specially augmenting and diversifying of the export structure, and curbing of unrestricted importation of goods, is recommended as long as economic growth is concerned.

Empirical Literature on Economic Growth, 1991–2020: Uncovering Extant Gaps and Avenues for Future Research

2021 ◽  
pp. 097491012110616
Author(s):  
Natalia I. Doré ◽  
Aurora A. C. Teixeira
Keyword(s):  
Economic Growth ◽  
Latin American ◽  
Empirical Studies ◽  
Empirical Literature ◽  
Future Research ◽  
Long Run ◽  
Scientific Attention ◽  
The Impact ◽  
Determinants Of Economic Growth ◽  
Latin American And Caribbean

The factors required to achieve sustainable economic growth in a country are debated for decades, and empirical research in this regard continues to grow. Given the relevance of the topic and the absence of a comprehensive, systematic literature review, we used bibliometric techniques to examine and document several aspects in the empirical literature related to growth, from 1991 to 2020. Five main results are worth highlighting: (a) the share of empirical articles on economic growth show a clear upward trend; (b) among all the groups of countries considered, the emerging economies (EEs) have received the most scientific attention; (c) the economic growth processes of the Latin American and Caribbean EEs have observed negligible scientific attention; (d) the very long-run studies comprise a residual share among the empirical literature on growth; (e) the extant empirical studies on economic growth have addressed mainly the impact of “macroeconomic conditions.” Our findings suggest there is a need to redirect the empirical growth agenda, so as to encourage more scientific attention devoted to the analysis of key determinants of economic growth in the very long run. There should also be increased scrutiny of the processes of economic growth in Latin American and Caribbean EEs

Does transportation infrastructure impact economic growth in India?

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Sreenu Nenavath
Keyword(s):  
Economic Growth ◽  
Economic Development ◽  
Positive Impact ◽  
Transport Infrastructure ◽  
Causality Test ◽  
Content Type ◽  
Long Run ◽  
Short Run ◽  
The Government ◽  
Determinants Of Economic Growth

Purpose This paper aims to show a long run and causal association between economic growth and transport infrastructure. Design/methodology/approach In this study, the authors use ARDL models through the period 1990 – 2020 to investigate the relationship between transport infrastructure and economic growth in India. Findings The infrastructure has a positive impact on economic growth in India for the long run. Moreover, Granger causality test demonstrates a unidirectional relationship between transport infrastructure to economic development. Stimulatingly, the paper highlights the effect of air infrastructure statistically insignificant on economic growth in the long and short-run period. Originality/value The original outcome from the study delivers an inclusive depiction of determinants of economic growth from transport infrastructure in India, and these findings will help the policymakers to frame policies to improve the transport infrastructure. Hence, it is proposed that the government of Indian should focus more to upsurge the transport infrastructure for higher economic development.

scholarly journals Sources of Economic Growth in Zambia: An Empirical Investigation

2017 ◽  
Vol 18 (2) ◽  
pp. 275-290 ◽  
Author(s):  
Themba G. Chirwa ◽  
Nicholas M. Odhiambo
Keyword(s):  
Economic Growth ◽  
Human Capital ◽  
International Trade ◽  
Foreign Aid ◽  
Development Aid ◽  
Human Capital Development ◽  
Long Run ◽  
Short Run ◽  
Capital Development ◽  
Macroeconomic Determinants

In this article, the key macroeconomic determinants of economic growth in Zambia are investigated using the autoregressive distributed lag (ARDL) bounds testing approach. The study has been motivated by the unsustainable growth trends that Zambia has been experiencing in recent years. Our study finds that the key macroeconomic determinants that are significantly associated with economic growth in Zambia include, amongst others, investment, human capital development, government consumption, international trade and foreign aid. The study’s results reveal that in the short run, investment and human capital development are positively associated with economic growth, while government consumption, international trade and foreign aid are negatively associated with economic growth. However, in the long run, the study finds investment and human capital development to be positively associated with economic growth, while only foreign aid is negatively associated with economic growth. These results have significant policy implications. They imply that short–run economic policies should focus on creating incentives that attract investment and increase the quality of education, the effectiveness of government institutions, the promotion of international trade reforms and the effectiveness of development aid. In the long run, development strategies should focus on attracting the accumulation of long-term investment, improving the quality of education and the effectiveness of development aid.

A note on the long-run determinants of economic growth

2013 ◽  
Vol 21 (2) ◽  
pp. 99-102 ◽  
Author(s):  
HuiMing Zhu ◽  
WanHai You ◽  
Yinghua Ren
Keyword(s):  
Economic Growth ◽  
Long Run ◽  
Determinants Of Economic Growth

Physical Capital, Production of the Energy and Time of Natural Resources’ Exhaustion

2016 ◽  
Vol 63 (1) ◽  
pp. 19-32 ◽  
Author(s):  
Maciej Malaczewski
Keyword(s):  
Economic Growth ◽  
Natural Resources ◽  
Physical Capital ◽  
Optimal Consumption ◽  
Long Run ◽  
Per Capita

The aim of this paper is to analyze long-run economic growth of the economy endowed with natural resources. In the model we assume that natural resources are the main source of the energy necessary to power physical capital. We also assume existence of second type of physical capital that does not need energy. We consider optimal consumption per capita – maximizing behaviour of the economy, and also analyze the time of exhaustion of natural resources.

Influence of Selected Macroeconomic Variables on Economic Growth in Nigeria (1999 – 2018)

2020 ◽  
Vol 7 (8) ◽  
pp. 315-325
Author(s):  
Lyndon M. Etale ◽  
Lucky L. Imbazi
Keyword(s):  
Economic Growth ◽  
Money Supply ◽  
Least Square Method ◽  
Positive Influence ◽  
Sustainable Growth ◽  
Least Square ◽  
P Value ◽  
Political Will ◽  
Long Run ◽  
Multiple Regression Technique

This study set out to empirically examine the influence of selected microeconomic variables (MEVs) on economic growth in Nigeria between 1999 and 2018. It evaluated gross domestic product (as the measure of economic growth) as a function of four selected variables of MEVs: Interest rate, Exchange rate, Inflation and Broad Money Supply. For effective and efficient analysis of the study variables the multiple regression technique based on the ordinary least square method with the help of several inferential statistical tools were used for data analysis to draw necessary conclusions. The models used analyze the relationship between the selected MEVs. Nigeria’s inability to increase her GDP over the years far above her population growth is heavily dependent on the sincerity of our political will to actualize it. The hypotheses formulated were rejected for three variables because the critical P-value 0.05 is < the calculated P-values; except for BMS Broad Money Supply (BMS) which revealed significant positive influence on GDP with P-value of 0.00 < 0.05 level of significance. The study therefore concluded that macroeconomic decision is not enough to bring about economic growth. The interplay of both fiscal and monetary policy backed up with political will to achieve its objectives both in the short and long-run is required. Nigeria still lack good political will for economic growth and poor governance. Still government should improve the regulations and supervisory role in the financial sector for sustainable growth to be achieved in Nigeria.

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