scholarly journals The Burden of Stabilisation on Provinces and Its Implications for the Social Sectors

2003 ◽  
Vol 42 (4II) ◽  
pp. 783-791 ◽  
Author(s):  
Qazi Masood Ahmed ◽  
Muhammad Sabir
Keyword(s):  
Economic Growth ◽  
Social Services ◽  
Structural Adjustment ◽  
Poverty Reduction ◽  
Negative Impact ◽  
Fiscal Deficit ◽  
Services Delivery ◽  
Poverty And Inequality ◽  
The Cost ◽  
Stabilisation Policies

An agenda of economic reform encompassing a broad range of structural adjustment policies (SAP) is underway in Pakistan since 1987-88. These policies have an adverse impact on the pace of economic growth and created more poverty and inequality in the country [see Bengali and Ahmed (2002); Kemal (2003)]. These studies argues that during the last fifteen years each government is trying to stabilise the economy even at the cost of economic growth and delivery of social services. The negative impact of stabilisation policies on economic growth of the country is reflected in the decline of GDP growth from an average annual growth of 4.6 percent during 1990s as compared to 6.5 percent during 1980s. Similarly, negligence of social services delivery is reflected in the recent UNDP Report (2003), which, show that the ranking of Pakistan has slipped from 136 to 141 along with the decline in many other social sector statistics. The top government officials now also recognise these facts and the relapse of growth oriented policy can be heard more often. Trend in public finance statistics of the country clearly indicate that one of the important victim of stabilisation policies are the expenditures of provincial governments. In last several years the significant portion of onus of containment of fiscal deficit has been shifted towards the provincial governments. The onus of containment of fiscal deficit by all four provincial governments during the last decade has increased from 18 percent to 50 percent, which has devastating impact on the service provision and poverty reduction.

Infrastructure and Economic Transformation in Ethiopia

2019 ◽  
pp. 190-212
Author(s):  
Seid Nuru
Keyword(s):  
Economic Growth ◽  
Capital Accumulation ◽  
Poverty Reduction ◽  
Physical Capital ◽  
Well Being ◽  
Economic Transformation ◽  
Infrastructure Development ◽  
Rail Network ◽  
Development Agenda ◽  
The Cost

Investment in infrastructure has a central role in the development agenda and is critical for supporting economic growth and poverty reduction. Infrastructure affects growth through two channels: directly through physical capital accumulation and indirectly through improvement in productivity. Investment in infrastructure enhances private sector activities by lowering the cost of production and opening new markets. Infrastructure investment in power generation, water, sanitation, and housing improves the social well-being of citizens. This chapter examines the pace and scale of infrastructure development in Ethiopia in the post-1991 period. The unparalleled expansion of infrastructure since the EPRDF came to power in 1991 has had a significant influence on the trajectory of Ethiopia’s economic growth. Investment in infrastructure now accounts for more than 15 per cent of GDP annually. Heavy investments in power, roads, rail network, irrigation, aviation, and logistics have helped to unleash the country’s potential both economically and as a major manufacturing hub in Africa.

scholarly journals Modeling the impact assessment of agricultural sector on economic development as a basis for the country’s investment potential

2019 ◽  
Vol 16 (3) ◽  
pp. 229-240
Author(s):  
Alina Bukhtiarova ◽  
Arsen Hayriyan ◽  
Victor Chentsov ◽  
Sergii Sokol
Keyword(s):  
Economic Growth ◽  
Economic Development ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
Agricultural Sector ◽  
Negative Impact ◽  
Manufacturing Sector ◽  
Value Added ◽  
The Cost ◽  
The Impact

In the context of countries integration into the world economic space, agricultural sector is one of the priorities and strategically important sectors of the national economy. Development of instruments aimed to increase investment potential of this sector is therefore an important component of the country’s economy growth. The article proposes a science-based model of the impact of the agricultural sector on the economic development level of countries trying to move towards European integration.It was found that the employment rate (+58.4) has the largest influence on the rate of GDP change in the studied group of countries (Ukraine, Moldova, Georgia, Armenia). The impact of the gross value added of the manufacturing sector on its economic growth is positive (+44.6). The negative foreign direct investment ratio in the model (–40.3) may be due to the fact that the indicator in the studied countries is still largely influenced by the intervention of the state mechanism, significant uncertainty and risk, which is a deterrent to the overall economic development. An important result of the study was that foreign direct investment had a negative impact on economic growth in developing countries. Further development of the investment potential of a country’s agricultural sector provides for a radical acceleration of scientific and technological progress and, on this basis, a reduction in the cost of a unit of agricultural products and food and an increase in their competitiveness in the domestic and world markets.

scholarly journals Causal nexus between fiscal deficit and economic growth

2016 ◽  
Vol 4 (8) ◽  
pp. 1-19
Author(s):  
Ravinthirakumaran Navaratnam ◽  
Kasavarajah Mayandy
Keyword(s):  
Economic Growth ◽  
Sri Lanka ◽  
South Asian ◽  
Negative Impact ◽  
Positive Impact ◽  
Cointegration Analysis ◽  
Annual Data ◽  
Fiscal Deficit ◽  
Asian Countries ◽  
The Impact

The impact of fiscal deficit on economic growth is one of the most widely debated issues among economists and policy makers in both developed and developing countries in the recent period. This paper seeks to examine the impact of fiscal deficit on economic growth in selected South Asian countries, namely, Bangladesh, India, Nepal, Pakistan and Sri Lanka using time series annual data over the period 1980 to 2014. The paper uses cointegration analysis, error correction modelling and Granger causality test under a Vector Autoregression (VAR) framework. The results from this study confirmed that the fiscal deficit has a negative impact on economic growth in the South Asian countries considered in this study except Nepal, which confirmed the positive impact. The results also highlighted that the direction of causality for the SAARC countries is mixed where fiscal deficit causes economic growth for Bangladesh, Nepal and Pakistan, but the reverse is true for India and Sri Lanka.  

scholarly journals Poverty in Russian regions in 2000-2017: factors and dynamics

2019 ◽  
Vol 3 (1) ◽  
pp. 63-74 ◽  
Author(s):  
Natalia V. Zubarevich
Keyword(s):  
Economic Growth ◽  
Income Inequality ◽  
Poverty Reduction ◽  
Income Level ◽  
Regional Differentiation ◽  
Russian Regions ◽  
Cost Of Living ◽  
Poverty Indicators ◽  
The Cost ◽  
Regions Of Russia

The article considers the level and dynamics of the level of poverty in the regions of Russia for 2000-2017, shows the sustainability of regional differentiation, despite the changes in the distribution of regions by the level of poverty. Regions with different rates of poverty reduction in the period of economic growth and the factors that accelerated this process are allocated. The weak impact of the two recent crises on the dynamics of poverty in the regions with different dynamics of income is revealed. The influence of demographic (child burden) and income factors (income level and income inequality), the cost of living in regions and the level of urbanization on regional poverty indicators is considered. The change of influence of different factors of poverty in the early 2000s and in 2017 is shown. An analysis of changes in the regional picture of poverty in transition from absolute to relative criteria of its measurement is carried out.

scholarly journals Decomposition of Changes in Poverty Measures: Sectoral and Institutional Considerations for the Poverty Reduction Strategy Paper of Pakistan

2003 ◽  
Vol 42 (4II) ◽  
pp. 879-892 ◽  
Author(s):  
Aliya H. Khan ◽  
Ali Shan Azhar
Keyword(s):  
Economic Growth ◽  
Poverty Reduction ◽  
Inequality Measures ◽  
Poverty Measures ◽  
Poverty And Inequality ◽  
Poverty Reduction Strategy Paper ◽  
Poverty Reduction Strategy ◽  
The One ◽  
Quantitative Impact ◽  
The Impact

Two extremely significant empirical questions on the relationship between growth, distribution and poverty have remained the focus of attention for researchers and academicians. First, how does a change in aggregate poverty reflect intrasectoral gains/losses versus intersectoral shifts in population? Second, how much of an observed change in poverty can be attributed to the changes in the distribution of income, as distinct from growth in average incomes? Standard inequality measures like the Gini coefficient can be misleading in this context. At any rate, the change in an inequality measure can be a poor guide to its quantitative impact on poverty. Ravallion and Huppi (1991) proposed decomposition formulae to throw light on the contributions of sectoral gains and population shifts (on the one hand) and economic growth and changes in inequality (on the other) to aggregate changes in poverty. They found that both population shifts and gains to the urban and rural sectors alleviated aggregate poverty in Indonesia over the 1984-87 period. In addition, they obtained estimates of the relative contributions of growth and greater equity to poverty alleviation in Indonesia. Datt and Ravallion (1992) extended the analysis to study poverty in Brazil and India during the 1980s. Kakwani (1993) explored the relation between economic growth and poverty for Cote d’Ivoire from 1980-85. He developed his own methodology to measure separately the impact of changes in average income and income inequality on poverty. Kakwani (2000) applied the same methodology to analyse changes in poverty in Thailand covering the period from 1988-94. Recently, Contreas (2003) examined the evolution of poverty and inequality in Chile between 1990 and 1996. Using the “Datt-Ravallion decomposition”, he computed that economic growth accounted for over 85 percent of the poverty reduction in Chile.

scholarly journals The Fiscal Deficit and Economic Growth in Pakistan: New Evidence

2017 ◽  
Vol 22 (Special Edition) ◽  
pp. 53-72
Author(s):  
Nasir Iqbal ◽  
Musleh ud Din ◽  
Ejaz Ghani
Keyword(s):  
Economic Growth ◽  
Time Series Data ◽  
Negative Impact ◽  
Threshold Level ◽  
Growth Potential ◽  
Smooth Transition ◽  
Series Data ◽  
Fiscal Deficit ◽  
New Evidence

This study revisits the relationship between the fiscal deficit and economic growth in Pakistan to determine whether there exists a threshold fiscal deficit that might serve as a benchmark for policymakers aiming to promote growth through fiscal expansion. We apply the smooth transition autoregressive model to time-series data for the period 1972–2014. The empirical analysis shows that the threshold level of fiscal deficit is 5.57 percent of GDP, above which the deficit has a negative impact on growth. Overall, the fiscal deficit has a negative impact on economic growth, mainly because it has tended to remain above the threshold level. However, there is room for fiscal policy to promote growth, provided the fiscal deficit is kept below the threshold level and public spending is channeled into productive investments that raise the country’s long-term growth potential.

Is Fiscal Deficit Essential for Stimulating Economic Growth in Developing Economies? Theory and Empirical Evidence from India

2021 ◽  
Keyword(s):  
Economic Growth ◽  
Developing Economies ◽  
Negative Impact ◽  
Gdp Growth ◽  
Fiscal Deficit ◽  
Causality Test ◽  
Long Run ◽  
Integration Test ◽  
The Government ◽  
The Impact

The primary purpose of this paper was to assess the impact of fiscal deficit on the economic growth of the Indian economy and find out the causality between fiscal deficit and economic growth from 1981-82 to 2019-20. To analyse the long-run relationship between the variables Johansen Co-integration test was used; after verifying the existence of long-run relationship among variables, the Vector Error Correction Model (VECM) was used, and the Granger Causality test was also used for investigating the direction of causality between pair of variables. The findings of the study supported the ideology of classical economists in which they neglected the government intervention for the growth and development of an economy. The results showed that in long run, fiscal deficit had a significant negative impact on economic growth as one percent increase in fiscal deficit demoted the GDP growth rate by 0.075 percent, whereas in the short run, the impact was also found negative, but it was significant only one lag. Simultaneously, there was unidirectional causality found from fiscal deficit to GDP growth.

scholarly journals Relationship between Economic Growth, Unemployment and Poverty: Analysis at Provincial Level in Vietnam

2016 ◽  
Vol 8 (12) ◽  
pp. 113 ◽  
Author(s):  
Nguyen Hoang Quy
Keyword(s):  
Economic Growth ◽  
Empirical Study ◽  
Poverty Reduction ◽  
Negative Impact ◽  
Positive Impact ◽  
Public Investment ◽  
Research Results ◽  
Provincial Level ◽  
Sustainable Economic Growth ◽  
The Relationship

This empirical study analyzes the relationship between economic growth, unemployment and poverty at provincial level in Vietnam. The study is conducted on a sample of 245 year observations in 63 Vietnam provinces for the period of 2012-2015. The research results show that: Firstly, public investment has a positive impact on economic growth. Secondly, poverty, and export & import have a negative impact on unemployment. Thirdly, public investment has a significant and positive impact on unemployment. Fourthly, unemployment; export & import; and public investment have a negative impact on poverty. On the basis of our findings, we suggest 03 groups of recommendations for sustainable economic growth, poverty reduction, and unemployment reduction of Vietnam provinces.

scholarly journals The effects of government expenditure on sustainable economic growth in India: assessment of the circular economy

2021 ◽  
Vol 72 (01) ◽  
pp. 74-80
Author(s):  
SMITHA NAYAK ◽  
VARUN S.G. KUMAR ◽  
SUHAN MENDON ◽  
RAMONA BIRAU ◽  
CRISTI SPULBAR ◽  
...  
Keyword(s):  
Economic Growth ◽  
Social Services ◽  
Government Spending ◽  
Central Government ◽  
Negative Impact ◽  
Positive Impact ◽  
Government Expenditure ◽  
Secondary Data ◽  
Online Data ◽  
The Government

Government expenditure is linked to the economic growth and is the driving force of the every country. In the post liberalization era, India has been exposed to the dynamics of the world economy due to which India has witnessed a significant impact of Government spending on its economic growth. The objective of this paper is to investigate the effects of the Central Government spending on the growth of the Indian economy over a period, from 2006 to 2016. The online data disclosures of the various ministries have been the major source of secondary data. Co-integration analysis is adopted to evaluate the effect of individual sectorial spending on the economic growth and gross domestic product. The economic spending is classified into 5 sectors namely: General Services, Social Services, Economic Services, Grants in Aid & Contribution and Public debt & Loans for analysis, as disclosed by the sources. The analysis gives us an idea of the various sectors which have a positive impact and the sectors which have a negative impact. The results would play an instrumental role in exploring the sectors in which the government should invest more, thereby contributing to an enhancement in the country’s growth.

scholarly journals Fiscal Decentralization and Social Service Delivery: An empirical Analysis of Balochistan

2021 ◽  
Vol 3 (4) ◽  
Author(s):  
Chakar Khan ◽  
Muhammad Akram ◽  
Imran Farooq
Keyword(s):  
Social Services ◽  
Social Service ◽  
Design Methodology ◽  
Poverty Reduction ◽  
Fiscal Decentralization ◽  
Social Service Delivery ◽  
Services Delivery ◽  
Ardl Approach ◽  
The Social ◽  
The Impact

Purpose: This study has been initiated to measure the impact of fiscal decentralization in case of Balochistan province by using both revenue decentralization and expenditure decentralization to measure the impact of fiscal decentralization on provision of health, education, employment and poverty reduction. Design/Methodology/Approach: In measure, we have applied ARDL approach on the data spanning from 1975 to 2016. Findings: Our results point out that fiscal decentralization improves the social services delivery in case of Balochistan province. Moreover, it improves the provision of health and education facilities in Balochistan. Further, our findings indicate that fiscal decentralization leads to reduction in the poverty and unemployment. In addition, we found that expenditure decentralization is relatively effective in the provision of social services as compared to the revenue decentralization in case of Balochistan. Implications/Originality/Value: Our study findings suggest that to improve the social services delivery; we may opt for fiscal decentralization particularly expenditure decentralization in case of Balochistan.

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