scholarly journals Contribution of Islamic Social Capital on Green Economic Growth in Malaysia

2020 ◽  
Author(s):  
Nazrah Abdul Hamid ◽  
Ruhaini Muda ◽  
Md. Mahmudul Alam ◽  
Normah Omar ◽  
Farah Aida Ahmad Nadzri

This paper studies the relationship between social capital on the green growth in Malaysia, with the aim of ascertaining whether faith based social capital has a role in sustaining economic growth. The study utilizes the annual data over the period of 1970-2015. This study employs the Autoregressive Distributed Lag (ARDL) model and causality using the Vector Error Correction Model (VECM). The findings demonstrate the long and short-run associations between social capital and green growth in Malaysia. The causality only runs in a unidirection from social capital to the green economic growth. The findings have important policy implications for green economic growth measurement to account for social well-being and to fulfil the objectives of Islamic Sharia.

2020 ◽  
Vol 22 (2) ◽  
pp. 249-264
Author(s):  
Minh Phu Pham

PurposeThe main purpose of this paper is to examine the existence of interdependence amongst banking earnings, banking security and growth performance across the Association of Southeast Asian Nations (ASEAN) region.Design/methodology/approachThis paper utilizes a panel autoregressive distributed lag method with the annual data of nine ASEAN members over 1996–2017.FindingsOnly the short-run Granger causal impact of banking profitability on economic expansion is supported, while the long-run Granger causality between all the variables is strongly recognized. Increased banking well-being supports economic development, while higher banking security might have inverse impacts. However, increasing the banking profit without the corresponding better soundness can be detrimental to the economic growth in the short run and much more in the long run. Thus, improving banking profitability and stability simultaneously has positive net effects on the economic development.Research limitations/implicationsThis research is restricted to unavailable data and limited measurements of both banking profitability and stability. Further inclusion of other macro-economic variables, other banking development aspects or even non-banking indicators should also be considered.Practical implicationsNational governments should emphasize a convenient financial environment, which can strongly enhance the positive relationship between banking earnings, banking safeness and output growth. Also, the relevant policies on higher banking well-being and stricter security obligations have to be simultaneously maintained.Originality/valueFew papers have inspected the interrelationship between banking stability, banking profitability and economic growth, particularly in the ASEAN region. This causes the banking literature shortage, as well as insufficient insights for the financial policymakers into their endogenous dynamics. Thus, the study is the first attempt to fulfil the research gap.


2019 ◽  
Vol 20 (2) ◽  
pp. 279-296 ◽  
Author(s):  
Syed Tehseen Jawaid ◽  
Mohammad Haris Siddiqui ◽  
Zeeshan Atiq ◽  
Usman Azhar

This study attempts to explore first time ever the relationship between fish exports and economic growth of Pakistan by employing annual time series data for the period 1974–2013. Autoregressive distributed lag and Johansen and Juselius cointegration results confirm the existence of a positive long-run relationship among the variables. Further, the error correction model reveals that no immediate or short-run relationship exists between fish exports and economic growth. Different sensitivity analyses indicate that initial results are robust. Rolling window analysis has been applied to identify the yearly behaviour of fish exports, and it remains negative from 1979 to 1982, 1984 to 1988, 1993 to 1999, 2004 and from 2010 to 2013, and it shows positive impact from 1989 to 1992, 2000 to 2003 and from 2005 to 2009. Furthermore, the variance decomposition method and impulse response function suggest the bidirectional causal relationship between fish exports and economic growth. The findings are beneficial for policymakers in the area of export planning. This study also provides some policy implications in the final section.


2019 ◽  
Vol 22 (1) ◽  
pp. 103-122
Author(s):  
Badri Narayan Rath ◽  
Danny Hermawan

This paper investigates, using annual data from 1980 to 2014, whether adoption of information and communication technologies (ICT) fosters economic growth in Indonesia. We employ an Autoregressive Distributed Lag cointegration technique on an augmented neoclassical growth model. The empirical results indicate a positive effect of ICT development on economic growth in both the long-run and short-run. The other regressors, such as total factor productivity, human capital, and capital per worker, also positively affect economic growth. From a policy perspective, the Indonesian government should promote ICT development through greater investment.


2018 ◽  
Vol 37 (2) ◽  
Author(s):  
Adenuga Fabian Adekoya ◽  
Nor Azam Abdul-Razak

This study examines the link between unemployment and violence by controlling for income and security expenditure as an antidote to reduce violence in Nigeria. Violence claims many lives and properties in the country, which further increased the demand for public security as tax on the nation’s resources. Also, the increased unemployment in Nigeria, deserving urgent attention to be reduced, as literature has pointed out, causes idleness, deception, frustration and anger. The idea of criminal motivation and strain as an inducement to violence are supported by evidence. Considering the nature of the variables in this study, we tested for endogeneity by using annual data set from 1980 to 2015 before proceeding to test for the long-run and short-run relationship. The Bound Test used to test the cointegration while the Autoregressive Distributed Lag Model (ARDL) approach was used to conduct endogeneity test. ARDL Instrumental Variable is also employed to determine long-run and short-run estimates. The results showed that unemployment causes violence while income as a variable to economic growth reduces violence at the 1% level of significance. Similarly, the deterrence variable of security expenditure adversely affects violence at the 10% level of significance. Therefore, this study suggests policy to promote economic growth as the means of income-employment generation among the youth and the unemployed. Youth programs should be provided especially among the unemployed by granting credit facilities to finance their own projects and further strengthen the deterrence institutions. RESUMEN Este estudio examina el vínculo entre el desempleo y la violencia mediante el control de los ingresos y el gasto de seguridad, como un antídoto para reducir la violencia en Nigeria. La violencia se cobra muchas vidas y propiedades en el país, lo que aumenta aún más la demanda de seguridad pública, traducida como un impuesto a los recursos de la nación. Además, el aumento del desempleo en Nigeria, la cual merece una atención urgente que se reduzca ya que, la literatura señala, provoca ociosidad, engaño, frustración e ira. La idea de la motivación y la tensión delictiva como un incentivo a la violencia está respaldada por la evidencia. Teniendo en cuenta la naturaleza de las variables en este estudio, probamos la endogeneidad mediante el uso de datos anuales de 1980 a 2015, antes de proceder a la prueba de la relación de largo y corto plazo. El Bound Test se usó para probar la cointegración, mientras que el enfoque del Modelo de retardo distribuido autorregresivo (ARDL), se usó para realizar pruebas de endogeneidad. La variable instrumental de ARDL también se emplea para determinar estimaciones a largo y corto plazo. Los resultados mostraron que el desempleo causa violencia; mientras que el ingreso, como variable del crecimiento económico, reduce la violencia, al nivel de significancia del 1%. De manera similar, la variable de disuasión del gasto en seguridad afecta adversamente la violencia, al nivel de significancia del 10%. Por lo tanto, este estudio sugiere una política para promover el crecimiento económico como el medio de generación de empleo-empleo entre los jóvenes y los desempleados. El empoderamiento de la juventud debe proporcionarse especialmente entre los desempleados mediante la concesión de servicios de crédito para financiar proyectos propios y fortalecer aún más las instituciones de disuasión.


Author(s):  
Issoufou Oumarou

Purpose: The aim of the paper is to examine the existence or not of a long run or a short run relationship between public debt and economic in Niger and investigate the significance of this relationship. Approach/Methodology/Design: The study first applied time series econometrics tests such as Augmented Dickey-Fuller (ADF) unit root test, Bound cointegration test and Auto Regressive Distributed Lag (ARDL) on annual data obtained from the International monetary fund (IMF) and the West African States Central Bank (BCEAO). The observations cover the period from 1970 to 2019. The study then performed some residual tests including serial correlation, normality and heteroskedasticity for the accuracy of the prediction of the model. Findings: The empirical results showed no long run relationship between public debt and economic growth in Niger. The short run analysis revealed that public debt and budget balance have short run causal effects on economic growth in Niger. The coefficients are significant at 10% significance level. Practical Implications: This article gives valuable information to Niger policy makers regarding the effects of public debt on Niger economic growth. The article highlights the effects that public debt has on economic growth in Niger in the short and long run. Therefore helping policy makers decide whether to increase or reduce the borrowing trend. Originality/value: The results of the paper give valuable information on the relationship that public debt may have with economic growth in Sub Saharan African countries with the similar macroeconomic indicators with Niger.


2018 ◽  
Vol 1 (2) ◽  
pp. p94
Author(s):  
Kando Serge Gbagbeu

In this study, we concern mainly about the short and long-run relationship between economic growth and financial development. We use a multi-steps methodology, namely the Autoregressive Distributed Lag (ARDL) approach and the Vector Error Correction Model (VECM) approach to test this relationship in Côte d’Ivoire from 1980 to 2014. Following our results, we conclude that there is a unidirectional causal relationship, both long run and short run, between GDP per capita and financial development index in Côte d’Ivoire running from economic growth to financial development.


2020 ◽  
Vol 14 (2) ◽  
pp. 202-212
Author(s):  
NWOSA Philip Ifeakachukwu

This article examines the link between globalisation, economic growth and income inequality in Nigeria using annual secondary data over the period 1981–2018. Specifically, it attempts to examine the following questions: (a) What is the direction of causation among globalisation, economic growth and inequality? (b) What is the impact of globalisation and economic growth on inequality? (iii) Do trade globalisation and financial globalisation have differential impacts on inequality in Nigeria? The article used both vector error correction modelling (VECM) and auto-regressive distributed lag (ARDL) techniques. The VECM results show a unidirectional causality from inequality and globalisation to economic growth in the long run, whereas a unidirectional causation was observed from inequality to economic growth in the short run. The ARDL estimate shows that globalisation and economic growth are significant determinants of inequality in Nigeria. Furthermore, it is observed that trade and financial globalisation influenced income inequality differently. In the light of these findings, the article recommends that the foreign direct investment should be channelled towards empowering the poor, and the dividends of economic growth should be evenly distributed to reduce the income inequality gap.


2018 ◽  
Vol 12 (1) ◽  
pp. 27
Author(s):  
Mohamed Ibrahim Mugableh

The main objective of this paper is to analyze equilibrium and dynamic causality relationships between monetary policy tools and economic growth in Jordan for the period (1990-2017). For this purpose, it considers the autoregressive distributed lag (ARDL) and vector error correction (VEC) models estimations. The results of ARDL approach show that monetary policy variables (i.e., real interest rate and money supply) have positive impact on economic growth in long-run and short-run except inflation rate. In addition, the results of VECM indicate bidirectional causal relationships between economic growth and monetary policy variables in long-run and short-run.


2015 ◽  
Vol 32 (3) ◽  
pp. 340-356 ◽  
Author(s):  
Madhu Sehrawat ◽  
A K Giri

Purpose – The purpose of this paper is to examine the relationship between financial development and economic growth in India using annual data from 1982 to 2012. Design/methodology/approach – The stationarity properties are checked by ADF, DF-GLS, KPSS and Ng–Perron unit root tests. The long- and short-run dynamics are examined by using the autoregressive distributed lag (ARDL) approach to co-integration. Findings – The co-integration test confirms a long-run relationship in financial development and economic growth for India. The analysis of ARDL test results reveals that both bank-based and market-based indicators of financial development have a positive impact on economic growth in India. Hence, the results support the supply-leading hypothesis and highlight the importance of financial development in economic growth. The findings also indicate that the Indian bank-centric financial sector has the potential for economic growth through credit transmission. Research limitations/implications – The present study recommends appropriate reforms in financial markets to attain sustainable economic growth. The findings are useful for policy-makers who want to maintain a parallel expansion of financial development and growth. Originality/value – To date, there are hardly any studies that use both market-based and bank-based indicators as proxies of financial development and analyze their role in economic growth in India. So, the contribution of the paper is to fill this gap in literature.


2018 ◽  
Vol 29 (7) ◽  
pp. 1298-1315 ◽  
Author(s):  
Seong-Hoon Lee ◽  
Yonghun Jung

This paper examines the causal relationship between renewable energy consumption and economic growth in South Korea using a framework of the conventional neo-classical production function of capital, labor, and renewable energy. We use cointegration technique of the autoregressive distributed lag bounds test and vector error correction mechanism causality tests to determine the econometric relationship, using data for the period 1990–2012; the results support the conservation hypothesis for South Korea. The results of the autoregressive distributed lag bounds test show that renewable energy consumption has a negative effect on economic growth, and the results of a vector error correction mechanism causality tests indicate a unidirectional relationship from economic growth to renewable energy consumption. The empirical results imply that economic growth is a direct driver expanding renewable energy use. In terms of policy implications, it is best for policy makers to focus on overall economic growth rather than expanding renewable energy to drive economic growth.


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