scholarly journals trade for development. determinants of economic growth in COMESA region. A panel data approach.

2020 ◽  
Author(s):  
Gassahun Getenet Gelaye
Keyword(s):  
Economic Growth ◽  
Panel Data ◽  
Trade Openness ◽  
Fixed Effect Model ◽  
Model Specification ◽  
Domestic Saving ◽  
Regression Result ◽  
Hausman Test ◽  
Fixed Capital Formation ◽  
Determinants Of Economic Growth

The objective of this paper is to analyze the determinants of economic growth in COMESA member countries from 1985-2015 using a panel data approach. In the study both descriptive and econometric analysis were used. For model specification a Hausman test and link tests were used. A Hausman test suggested for fixed effect model as an appropriate model in this study. In addition, other CLM assumptions were detected before the actual regression result and there were found a problem of serial correlation and heteroskedasticity. As a result, a cluster robust of standard error test was used to handle the problem. The regression result show that foreign direct investment, broad money, trade openness, and human capital growth were found to have positive and significant impact on economic growth in the region. In contrast, gross fixed capital formation in this study was found to have insignificant impact on economic growth in COMESA member countries. Moreover, government final consumption expenditure, inflation and population growth affects economic growth negatively and significantly in COMESA member countries. In this paper a policy recommendation appeal to appreciate domestic saving and investment from the residence, and reduction of tariff for imported capital goods and domestic innovation, reforms to be forwarded more open to global trade for the region (COMESA) member countries through reduction of trade barriers between the COMESA member countries and the rest of the world, and government consumption or investment in the region should be geared towards more productive activities for economic growth were discussed in this research paper.

Economic Growth and Macro Variables in India: An Empirical Study

2015 ◽  
pp. 42-59
Author(s):  
Saba Ismail ◽  
Shahid Ahmed
Keyword(s):  
Economic Growth ◽  
Growth Rates ◽  
Trade Openness ◽  
Capital Formation ◽  
Gdp Growth ◽  
Fdi Inflows ◽  
Domestic Capital ◽  
The Government ◽  
Macro Variables ◽  
Determinants Of Economic Growth

The research objective of this paper is to explore the empirical linkages between economic growth and foreign direct investment (FDI), gross fixed capital formation (GFCF) and trade openness in India (TOP) over the period 1980 to 2013. The study reveals a positive relationship between economic growth and FDI, GFCF and TOP. This study establishes a strong unidirectional causal flow from changes in FDI, trade openness and capital formation to the economic growth rates of India. The impulse response function traces the positive influence of these macro variables on the GDP growth rates of India. The study also reveals that the volatility of GDP growth rates in India is mainly attributed to the variation in the level of GFCF and FDI. The study concludes that the FDI inflows and the size of capital formation are the main determinants of economic growth. In view of this, it is expected that the government of India should provide more policy focus on promoting FDI inflows and domestic capital formations to increase its economic growth in the long-term.

scholarly journals Determinant of FDI Inflows in OIC Countries

2021 ◽  
Vol 4 (1) ◽  
Author(s):  
Tania Megasari ◽  
Samsubar Saleh
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Exchange Rates ◽  
Direct Investment ◽  
Trade Openness ◽  
Political Stability ◽  
Fixed Effect Model ◽  
Fdi Inflows ◽  
Macroeconomic Variables ◽  
Effect Model

This study aims to analyze the determinants of foreign direct investment (FDI) in the Organization of Islamic Cooperation (OIC) country members for the period 2005 to 2018 The determinant variables of FDI are corruption, political stability and macroeconomic variables such as inflation, exchange rates, economic growth, and trade openness. Analysis used in the study  is the fixed effect model (FEM) of the OIC data panel.The results showed that economic growth and trade openness had a significant influence on foreign direct investment (FDI), while the effects of corruption, political stability, inflation and the exchange rate have no significant effect on foreign direct investment (FDI).

scholarly journals Economic Growth of Asia Pacific Countries

2018 ◽  
Vol 2 (1) ◽  
pp. 52-60
Author(s):  
Nabaz T. Khayyat ◽  
Sherwan Kafoor
Keyword(s):  
Economic Growth ◽  
Human Capital ◽  
Trade Openness ◽  
Government Expenditure ◽  
Asia Pacific ◽  
Tax Rate ◽  
Education And Health ◽  
Fixed Capital Formation ◽  
Main Driver ◽  
The Impact

This empirical study examines the determinant of economic growth among Asia Pacific countries. While many other studies focused on specific economies with particular determinants identified from previous studies, this study expands the boundaries of countries to examine different factors that are expected to affect the economic growth in Asia Pacific countries. Estimation results of this study are based on the analysis of a panel data for the period 1994–2011. The impact of total population, industry share of GNI, interest rate, gross fixed capital formation, and tax rate are statistically examined to be strongly significant for the whole sample. In the case of government expenditure and trade openness, they are examined to be significant to some degree. Finally, though human capital is expected to be the main driver of economic growth, the result from correlation analysis revealed that there is a high correlation between expenditure on education and health. To show the impact of human capital on economic growth in Asia Pacific countries, estimation with years of schooling may enhance the study instead of using expenditure on education and health.

scholarly journals Islamic Finance and Economic Growth Nexus: An Econometric Analysis

2019 ◽  
Vol 2 (1) ◽  
pp. 11-22
Author(s):  
Kashif Raza ◽  
Rashid Ahmad ◽  
Muhammad Abdul Rehman Shah ◽  
Muhammad Umar
Keyword(s):  
Economic Growth ◽  
Time Series Data ◽  
Trade Openness ◽  
Unit Root Test ◽  
Least Square ◽  
Series Data ◽  
Islamic Finance ◽  
Causality Test ◽  
Economic Agents ◽  
Fixed Capital Formation

Researchers have written chain of research papers about the dynamics of financial development and economic growth. The financial capital plays a productive role when it delivers to economic agents who are facing shortage or excess of funds.  This study explores the linkages among Islamic financing and economic growth for Pakistan, by using annual time series data from 2005-2018. Islamic banks’ financing funds used as a proxy of Islamic financing, Gross Domestic Product (GDP), Gross Fixed Capital Formation (GFCF), labor force (LF),Broad money(M) and Trade openness (TO) to presents real sector of an economy. For the exploration, the unit root test, Ordinary least square technique and Granger causality test are applied. The results validate a substantial causal relationship of Islamic financing and GDP, which supports the Schumpeter’s supply-leading view. The results indicate that Islamic finance contributed towards economic growth.  

The Impact of Total Factor Productivity on Economic Growth for Developed and Emerging Countries: A Second-generation Panel Data Analysis

2017 ◽  
Vol 11 (4) ◽  
pp. 404-417 ◽  
Author(s):  
Ömer Yalçınkaya ◽  
İbrahim Hüseyni ◽  
Ali Kemal Çelik
Keyword(s):  
Economic Growth ◽  
Panel Data ◽  
Total Factor Productivity ◽  
Second Generation ◽  
Capital Formation ◽  
Emerging Countries ◽  
Fixed Capital ◽  
Factor Productivity ◽  
Fixed Capital Formation ◽  
The Impact

This article investigates the determinants of economic growth and also seeks to determine whether or not the impact of total factor productivity (TFP) changes with respect to the level of development for selected countries. In this manner, the present study examines the impact of gross fixed capital formation, employed labour and the TFP of G-7, G-12 and G-20 countries on real GDP per capita using second-generation panel data analyses over the period 1992–2014. The results reveal that TFP has a greater impact on economic growth than fixed capital formation and employed labour for all country groups. Furthermore, the impact of TFP on economic growth was found to be greater for developed countries than for emerging countries. JEL Classification: C21, C22, C23

scholarly journals The Determinants of Economic Growth in CEMAC through a Panel Data Approach

2016 ◽  
Vol 4 (2) ◽  
pp. 483
Author(s):  
Nzingoula Gildas Crepin
Keyword(s):  
Economic Growth ◽  
Panel Data ◽  
Fixed Effects ◽  
Good Governance ◽  
Generalized Method Of Moments ◽  
Central Africa ◽  
Ordinary Least Squares ◽  
Fixed Effects Model ◽  
Main Determinants ◽  
Determinants Of Economic Growth

<div><p><em>This article highlights through a panel data approach the determinants of economic growth; observed over the last decade in the Economic and Monetary Community of Central Africa (CEMAC) and necessary to reach emerging economies stage. To do this, we essentially used Stata 12 software to come up with the results, and a panel data sample comprising six CEMAC member states, namely Congo, Cameroon, Gabon, Equatorial Guinea, Central African Republic and Chad, for the period ranging from 2000 to 2013. The results obtained after estimating ordinary least squares, fixed effects model, random effects model, generalized method of moments (GMM) and specification tests show that the best model to estimate these types of data is the fixed effects model. Besides, the main determinants of economic growth in CEMAC over that period are Foreign Direct Investment (FDI) and loans lending to the economy (LOAN). After estimation, FDI is found positive and significant on economic growth, while LOAN is significant and found negative maybe due to lack of good governance.</em></p></div>

scholarly journals Determinants Of Economic Growth: Evidence From American Countries

2010 ◽  
Vol 9 (5) ◽  
Author(s):  
Hong Zhuang ◽  
Robert St. Juliana
Keyword(s):  
Economic Growth ◽  
Population Growth Rate ◽  
Capital Expenditure ◽  
Empirical Studies ◽  
Trade Openness ◽  
Solow Model ◽  
Per Capita Gdp ◽  
Per Capita ◽  
Determinants Of Economic Growth ◽  
The Relationship

This paper explores determinants of economic growth using variables from traditional Solow model and recent empirical studies. The study covers data on American countries during the period 1995-2006.  The estimates show that per capita, GDP growth is positively related to capital expenditure, primary completion rate and trade openness and the relationship is statistically significant. Furthermore, population growth rate and investment in research and development have positive impacts on economic growth, yet the effects are not significant.

scholarly journals Research on the Impact of Environmental Regulation and Technology Innovation on the Quality of Economic Growth

2021 ◽  
Author(s):  
Qingyang Wu
Keyword(s):  
Economic Growth ◽  
Panel Data ◽  
Environmental Regulation ◽  
Technological Innovation ◽  
Environmental Regulations ◽  
Threshold Model ◽  
Fixed Effect Model ◽  
Paper Test ◽  
The Impact

Abstract：This paper uses the balanced panel data from 29 provinces (autonomous regions and municipalities) in China for a total of 17 years from 2000 to 2016 as a research sample, and establishes an empirical model to examine the impact of environmental regulations and technological innovation on the quality of economic growth. Then this paper test technological innovation as a threshold variable, in which play a regulatory role. Taking the provincial balanced panel data as a research sample, a fixed effect model, a system GMM model, and a panel threshold model were established for empirical testing and the robustness test. Based on the empirical results, this article draws the following conclusions: from a national perspective, environmental regulations and technological innovation can significantly promote the quality of economic growth; from a regional perspective, there are regional differences in impact effects. Under the constraints of environmental regulations, the promotion effect of technological innovation on the quality of economic growth will be reduced; the impact of environmental regulation on the quality of economic growth will have a "threshold effect", and environmental regulation can significantly promote the quality of economic growth only after crossing the threshold and the threshold of technological innovation.

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