Remittances, Economic Growth and Poverty: A Case of African OIC Member Countries

2018 ◽  
Vol 57 (2) ◽  
pp. 121-143
Author(s):  
Nasim Shah Shirazi ◽  
Sajid Amin Javed ◽  
Dawood Ashraf
Keyword(s):  
Economic Growth ◽  
Financial Development ◽  
Poverty Reduction ◽  
Simultaneous Equation ◽  
Equation Model ◽  
Annual Data ◽  
Simultaneous Equation Model ◽  
African Countries ◽  
Alternative Source ◽  
The Impact

This paper investigates the impact of remittance inflows on economic growth and poverty reduction for seven African countries using annual data from 1992-2010. By using the depth of hunger as a proxy for poverty in a Simultaneous Equation Model (SEM), we find that remittances have statistically significant growth enhancing and poverty reducing impact. Drawing on our estimates, we conclude that financial development level significantly increases the remittances inflows and strengthens poverty alleviating impact of remittances. Results of our study further show a signficant interactive imapct of remittances and finacial develpment on economic growth, suggesting the substitutability between remittance inflows and financial development. We further find that 3 percentage point increase in credit provision to the private sector (financial development) can help eliminate the severe depth of hunger in the region. Remittances, serving an alternative source of private credit, can be effective in this regard. Keywords: Remittance Inflow, Poverty Alleviation, Financial Development, Simultaneous Equation Model

scholarly journals Keterkaitan Antara Kebiasaan Mencuci Tangan, Pengurangan Kemiskinan dan Angka Harapan Hidup:

MBIA ◽  
2021 ◽  
Vol 20 (1) ◽  
pp. 64-78
Author(s):  
Sari Lestari Zainal Ridho ◽  
Dina Mellita ◽  
Ade Wirman Syafei
Keyword(s):  
Life Expectancy ◽  
Data Processing ◽  
Poverty Reduction ◽  
Simultaneous Equation ◽  
Equation Model ◽  
Simultaneous Equation Model ◽  
Analysis Technique ◽  
The Impact ◽  
The Relationship ◽  
At Home

The purpose of this study was to assess the impact of handwashing on poverty reduction and life expectancy. The Covid-19 pandemic, which is ongoing and has not yet ended after more than a year in Indonesia, reminds us of the importance of maintaining health, especially through simple methods, namely washing hands frequently. Referring to previous research, health is an important factor that affects many things, including life expectancy and poverty. The existence of the Covid-19 pandemic seems to be an alarm that reminds us of the importance of getting used to washing hands frequently in an effort to maintain health. Therefore, this research is deemed necessary to use data from provinces in Indonesia. The relationship between handwashing habits and their effect on life expectancy and poverty reduction is also influenced by other interconnected variables, therefore data processing is carried out using the Simultaneous Equation Model analysis technique, as an effort to jointly examine the variables suspected to be the impact interrelated from this research. The results of this study indicate that the habit of washing hands in various provinces in Indonesia has a significant effect on life expectancy and poverty, so it needs to be continued and requires supportive policies, for example in the form of increasing awareness to stay healthy, stay save with more stay at home.   Abstrak Tujuan dari penelitian ini adalah menkaji dampak kebiasaan mencuci tangan terhadap pengurangan kemiskinan dan angka harapan hidup. Pandemi Covid-19 yang sedang berlangsung  dan belum kunjung usai setelah lebih setahun lamanya di Indonesia, mengingatkan kita pentingnya menjaga kesehatan, terutama melalui cara sederhana yaitu melakukan aktivitas sering mencuci tangan. Mengacu paada penelitian terdahulu kesehatan merupakan faktor penting yang berpengaruh terhadap banyak hal, diantaranya angka harapan hidup dan kemiskinan. Keberadaan pandemi Covid-19 seolah menjadi alarm yang mengingatkan kita pentingnya untuk membiasakan sering mencuci tangan sebagai upaya menjaga kesehatan. karena itu penelitian ini dirasa perlu untuk dilakukan dengan menggunakan data dari provinsi-provinsi yang ada di Indonesia. keterkaitan kebiasaan mencuci tangan dan pengaruhnya terhadap angka harapan hidup dan pengurangan kemiskinan juga dipengaruhi oleh variabel-variabel lain yang saling terhubung, karena itu pengolahan data dilakukan dengan menggunakan teknik analisis Simultan Equation Model, sebagai upaya menelaah secara bersama sama variabel variabel yang diduga merupakan dampak yang saling berkaitan dari penelitian ini. Hasil penelitian ini menunjukkan bahwa kebiasaan mencuci tangan di berbagai provinsi di Indonesia memiliki pengaruh signifikan terhadap kemiskinan dan usia harapan hidup, sehingga perlu dilanjutkan dan memerlukan kebijakan yang mendukung, misalnya berupa peningkatan kesadaran untuk stay health, stay save dengan lebih banyak stay at home. Kata kunci: Kebiasaan Mencuci Tangan, Kemiskinan, Angka Harapan Hidup, Covid-19

scholarly journals The drivers of economic growth in China and India: globalization or financial development?

2017 ◽  
Vol 16 (1) ◽  
pp. 54-84 ◽  
Author(s):  
Magda Kandil ◽  
Muhammad Shahbaz ◽  
Mantu Kumar Mahalik ◽  
Duc Khuong Nguyen
Keyword(s):  
Economic Growth ◽  
Financial Development ◽  
Emerging Market ◽  
Annual Data ◽  
Test Results ◽  
Causality Test ◽  
Content Type ◽  
China And India ◽  
Integration Test ◽  
The Impact

Purpose Using annual data from 1970 to 2013 for China and India, this paper aims to examine the impact of globalization and financial development on economic growth by endogenizing capital and inflation and drawing comparisons between the two fastest growing emerging market economies. Design/methodology/approach In the long run, co-integration test results indicate that financial development increases economic growth in China and India. Findings The results also reveal that globalization accelerates economic growth in India but, surprisingly, impairs economic growth in China, as it increases competition for exports. The results furthermore disclose that acceleration in capitalization and inflation, as a proxy for aggregate demand, are positively linked to economic growth in China and India. Originality/value Causality test results indicate that both financial development and economic growth are interdependent. In contrast, causality runs from higher economic growth to increased globalization in India, while the results do not support long-term causality between globalization and economic growth in China.

scholarly journals Where does Pro-Poor Growth Occur in Vietnam?

2015 ◽  
Vol 22 (1) ◽  
pp. 20-41
Author(s):  
Bao Nguyen Hoang
Keyword(s):  
Economic Growth ◽  
Gini Coefficient ◽  
Poverty Alleviation ◽  
Poverty Reduction ◽  
Equation System ◽  
Simultaneous Equation ◽  
Poverty Index ◽  
Poor Growth ◽  
Simultaneous Equation System ◽  
The Impact

Although Vietnam’s economic growth and poverty reduction for almost three decades have been remarkable, growth for poverty reduction is unequally distributed across the nation. The paper examines the cause of poverty and the impact of provincial economic growth on poverty alleviation, using the data of 63 provinces in Vietnam. The elasticity of poverty with respect to provincial economic growth is employed (the elasticities of headcount index, poverty gap index, and squared poverty index with respect to provincial economic growth) to identify the provinces where pro-poor growth has occurred. The elasticity of poverty with respect to provincial Gini coefficient is examined to identify the impact of expenditure inequality on poverty. The simultaneous equation system is estimated to analyze not only direct and indirect effects of the related variables, but also the causality effect between economic growth and the poverty elasticity with respect to both growth and the Gini coefficient.

What debt threshold hampers economic growth in Africa?

2019 ◽  
Vol 19 (1) ◽  
pp. 25-42 ◽  
Author(s):  
Lord Mensah ◽  
Divine Allotey ◽  
Emmanuel Sarpong-Kumankoma ◽  
William Coffie
Keyword(s):  
Economic Growth ◽  
Public Debt ◽  
Developed Countries ◽  
Annual Data ◽  
African Region ◽  
African Countries ◽  
Content Type ◽  
Distributed Models ◽  
The Impact ◽  
Debt Levels

Purpose This paper aims to test whether a debt threshold of public debt has any effect on economic growth in Africa. Design/methodology/approach The authors applied the panel autoregressive distributed models on 38 African countries with annual data from 1970 to 2015. It was established that the threshold and the trajectory of debt has an impact on economic growth. Findings Specifically, the authors found that public debt hampers economic growth when the depth is in the region of 20 to 80 per cent of GDP. Based on debt trajectory, this study established that increasing public debt beyond 50 to 80 per cent of GDP adversely affects economic growth in Africa. The study also finds that the persistent rise in debt also has adverse effect on economic growth in the African countries in the sample. It must be known to policymakers that the threshold of debt in developing countries, and for that matter African countries, are less than that of developed countries. Practical implications This study suggests threshold effects between 20 and 50 per cent; this should be a guide for policymakers in the accumulation of debt stock. Interestingly, the findings suggest some debt trajectory effect, which policymakers might consider by increasing efforts to reduce debt levels when they fall between 50 to 80 per cent of GDP. This implies that reducing such debt levels can help African countries increase their economic growth. Originality/value The study is unique because it seeks to add new evidence on the relationship between public debt and growth in the African region, by considering the impact of the persistent growth of public debt on economic growth.

The interaction between economic growth in the EU and South‐East Asia

1995 ◽  
Vol 95 (2) ◽  
pp. 40-47
Author(s):  
Mokhtar M. Metwally
Keyword(s):  
Economic Growth ◽  
East Asian ◽  
Simultaneous Equation ◽  
Equation Model ◽  
South East Asia ◽  
Simultaneous Equation Model ◽  
Asian Countries ◽  
Feedback Effects ◽  
Asian Economy ◽  
The Eu

Develops and tests a simultaneous equation model to assess the effect of growth in exports to the EU on the economic development of five South‐East Asian countries. Emphasizes the role played by economic interdependence and estimates the degree of feedback effects between each Asian economy and the EU.

scholarly journals Dynamics of Financial Development, Economic Growth, and Poverty Alleviation: The Indonesian Experience

2018 ◽  
Vol 13 (1) ◽  
pp. 17-30 ◽  
Author(s):  
Sovia Dewi ◽  
M. Shabri Abd. Majid ◽  
Salina Kassim ◽  
Keyword(s):  
Economic Growth ◽  
Financial Development ◽  
Poverty Reduction ◽  
Financial Sector ◽  
Poverty Rate ◽  
Development Economic ◽  
Annual Data ◽  
Distributed Lag ◽  
Long Run ◽  
The Government

Abstract Although the poverty rate in Indonesia has been declining in the last several years, the rate of poverty decline is slowing down. In order to achieve its poverty reduction target within the stipulated time period, the government has stepped up efforts to enhance the contribution of the financial sector towards poverty reduction. This study aims to empirically explore the interlinkages between financial sector development and poverty reduction in Indonesia. Focusing on annual data covering the period from 1980 to 2015, the study adopts the Autoregressive Distributed Lag (ARDL) cointegration approach to examine the long-run relationship between the variables. The study found that there is a long-run relationship between financial development, economic growth, and poverty reduction in Indonesia. It also documented a unidirectional causality running from the financial sector to poverty reduction and a bidirectional causality between economic growth and poverty reduction. Therefore, policies to ensure the conducive growth of the financial sector would go a long way in promoting the economy, creating employment opportunities, and consequently accelerating poverty eradication

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