scholarly journals Foreign Investment, Government Expenditure, and Economic Growth in Malaysia

2010 ◽  
Author(s):  
Fatimah Said ◽  
Zarinah Yusof ◽  
Saad Mohd Said ◽  
Ahmad Farid OSMAN
Keyword(s):  
Economic Growth ◽  
Foreign Investment ◽  
Driving Forces ◽  
Negative Impact ◽  
Positive Impact ◽  
Government Expenditure ◽  
Real Income ◽  
Ordinary Least Squares ◽  
Gdp Per Capita ◽  
Per Capita

This study uses the ordinary least squares technique to examine the effect of foreign investment and government expenditure on the growth in GDP per capita in Malaysia over the period 1978-2005. The regression results showed that the growth of export and ratio of government expenditure to GDP are the driving forces in enhancing the economic growth in Malaysia. Foreign investment and previous year real income per capita growth depict positive impact, whereas population growth exerts a negative impact on economic growth.  

The impact of a country’s level of development on the nexus between bank lending structure and economic growth

2021 ◽  
pp. 51-70
Author(s):  
I. N. Gurov ◽  
E. Y. Kulikova
Keyword(s):  
Economic Growth ◽  
Low Income ◽  
Banking Sector ◽  
Negative Impact ◽  
Positive Impact ◽  
Bank Lending ◽  
Low Income Countries ◽  
Gdp Per Capita ◽  
Per Capita ◽  
The Impact

The purpose of this paper is to determine how the impact of the bank lending structure on economic growth differs depending on the level of a country’s development. The article provides suggestions on how much one can rely on the leading growth of corporate and consumer bank lending in order to promote economic growth. The study is based on the panel data for 211 countries for the period 1990—2019 using methods of qualitative and quantitative analysis. The authors have identified three groups of the countries where the impact of the bank lending structure on economic growth is different. In the least developed and low-income countries, the leading growth of both consumer and corporate lending has a positive impact on economic growth. As GDP per capita reaches 4,700—7,000 constant 2010 U.S. dollars, the outstripping growth of consumer lending begins to negatively affect economic growth, while corporate lending continues to have a positive impact. As GDP per capita continues to increase, corporate lending also begins to negatively affect economic growth. The GDP per capita threshold level, after which the negative impact of corporate lending begins, ranges from 6,000 to 42,000 constant 2010 U.S. dollars, some estimates allow us to specify these limits from 13,000 to 22,000 constant 2010 U.S. dollars. Such broad boundaries are determined by the fact that the role of the banking sector in investments financing may differ because of the financial sector model and the national economy structure. However, our results show that in the most developed and high-income countries, faster growth in corporate lending will not contribute to economic growth. The study also finds that the share of mortgage loans in GDP has a positive but insignificant effect on economic growth in all groups of the countries.

scholarly journals AID AND GROWTH IN BANGLADESH: A REASSESSMENT

2018 ◽  
pp. 422-440
Author(s):  
Sharif Hossain ◽  
Rajarshi Mitra ◽  
Thasinul Abedin
Keyword(s):  
Economic Growth ◽  
Foreign Aid ◽  
Inflation Rate ◽  
Government Expenditure ◽  
Real Income ◽  
Domestic Investment ◽  
Real Gdp ◽  
Long Run ◽  
Short Run ◽  
Per Capita

Although the amount of foreign aid received by Bangladesh as a share of GDP has declined over the years, Bangladesh remains one of the heavily aiddependent countries in Asia. The results of most empirical studies that have examined the effectiveness of foreign aid or other forms of development assistance for economic growth have varied considerably depending on the econometric methodology used and the period of study. As the debate and controversy over aid-effectiveness for economic growth continue to grow, this paper reinvestigates the short-run and long-run effects of foreign aid received on percapita real income of Bangladesh over the period 1972–2015. A vector error correction model is estimated. The results indicate lack of any significant short-run and long-run relation between foreign aid and per-capita real income. Results further indicate short-run unidirectional causalities from per-capita real GDP to domestic investment (in proportion to GDP), from government expenditure (in proportion to GDP) to inflation rate, from inflation rate to domestic investment (in proportion to GDP), and from domestic investment to foreign aid (as percentages of GDP). Short-run bidirectional causality is observed between per-capita electricity consumption and per-capita real GDP, and between per-capita real GDP and government expenditure (in proportion to GDP).

The effectiveness of government expenditure on economic growth in Botswana

2019 ◽  
Vol 10 (3) ◽  
pp. 368-384 ◽  
Author(s):  
Kafayat Amusa ◽  
Mutiu Abimbola Oyinlola
Keyword(s):  
Economic Growth ◽  
Government Spending ◽  
Negative Impact ◽  
Positive Impact ◽  
Government Expenditure ◽  
Public Spending ◽  
Empirical Literature ◽  
Content Type ◽  
Long Run ◽  
Short Run

Purpose The purpose of this paper is to examine the relationship between government expenditure and economic growth in Botswana over the period 1985‒2016. The study employed the auto-regressive distributed lag (ARDL) bounds testing approach in investigating the nexus. The study makes the argument that the effectiveness of public spending should be assessed not only against the amount of the expenditure but also by the type of the expenditure. The empirical findings showed that aggregate expenditure has a negative short-run and positive long-run effect on economic growth. When expenditure is disaggregated, both forms of expenditures have a positive short-run effect on economic growth, whereas only a long-run positive impact of recurrent expenditure is observed. The study suggests the need to prioritize scarce resources in productive recurrent and development spending that enables increased productivity. Design/methodology/approach This study examined the effectiveness of government spending in Botswana, within an ARDL framework from 1985 to 2016. To achieve this, the analysis is carried out on both an aggregate and disaggregated level. Government spending is divided into recurrent and development expenditures. Findings This study examined the effectiveness of government spending in Botswana, within an ARDL framework from 1985 to 2016. To achieve this, the analysis hinged on both the aggregate and disaggregated levels. The results of the aggregate analysis suggest that total public expenditure has a negative impact on economic growth in the short run; however, its impact becomes positive over the long run. On disaggregating government spending, the results show that both recurrent and development expenditures have a significant positive short-run impact on growth; however, in the long run, the significant positive impact is only observed for recurrent expenditure. Practical implications The results provide evidence of the diverse effects of government expenditure in the country. In the period under investigation, 73 percent of total government expenditure in Botswana was recurrent in nature, whereas 23 percent was related to development. From the results, it can be observed that although the recurrent expenditure has contributed to increased growth and must be encouraged, it is also pertinent for the Botswana Government to endeavor to place more emphasis on productive development expenditure in order to enhance short- and long-term growth. Further, there is a need to strengthen the growth-enhancing structures and to prioritize the scarce economic resources toward productive spending and ensuring continued proper governance over such expenditures. Originality/value The study provides empirical evidence on the effectiveness of government spending in a small open, resource-reliant middle-income SSA economy and argues that the effectiveness of public spending must be assessed not only against the amount of the expenditure but also on the type or composition of the expenditure. The study contributes to the scant empirical literature on Botswana by employing the ARDL approach to cointegration technique in estimating the long- and short-run impact of government expenditure on economic growth between 1985 and 2016.

scholarly journals Remittances Impact on Economic Growth, Domestic Savings and Domestic Capital at the Presence of ODA and FDI in Selected MENA Countries

2016 ◽  
Vol 3 (2) ◽  
pp. 26 ◽  
Author(s):  
Mahmoud Mohammed Sabra
Keyword(s):  
Economic Growth ◽  
Negative Impact ◽  
Positive Impact ◽  
Government Expenditure ◽  
Host Countries ◽  
Mena Countries ◽  
Domestic Capital ◽  
Domestic Savings ◽  
Seeking Behavior ◽  
The Impact

<p>This article investigates the impact of remittances on economic growth, investment and domestic savings in selected MENA labor exporting countries. The estimations have been done in the presence of other international capital inflow, which are foreign aid and foreign direct investment. A multiple equations model estimated simultaneously using different techniques. We found a positive impact of remittances on both growth and investment, meanwhile a negative impact on domestic savings. Aid impacts negatively on both growth and savings where it finance consumption instead of investment and enhance rent seeking behavior. Government expenditure and FDI are important source of growth. We recommended that policies for encouraging final use of productive investment of remittances. In addition, enhancing more project of migrant in home country that may facilitate their trade with host countries. Finally, more efficient allocation of aid is requires, and attracting more FDI.</p>

scholarly journals Impacts from Economic Development and Environmental Factors on Life Expectancy: A Comparative Study Based on Data from Both Developed and Developing Countries from 2004 to 2016

2021 ◽  
Vol 18 (16) ◽  
pp. 8559
Author(s):  
Zhiheng Chen ◽  
Yuting Ma ◽  
Junyi Hua ◽  
Yuanhong Wang ◽  
Hongpeng Guo
Keyword(s):  
Developing Countries ◽  
Economic Development ◽  
Gini Coefficient ◽  
Negative Impact ◽  
Positive Impact ◽  
Developed Countries ◽  
Environmental Indicators ◽  
Gdp Per Capita ◽  
Per Capita ◽  
Urbanization Rate

Both economic development level and environmental factors have significant impacts on life expectancy at birth (LE). This paper takes LE as the research object and selects nine economic and environmental indicators with various impacts on LE. Based on a dataset of economic and environmental indicators of 20 countries from 2004 to 2016, our research uses the Pearson Correlation Coefficient to evaluate the correlation coefficients between the indicators, and we use multiple regression models to measure the impact of each indicator on LE. Based on the results from models and calculations, this study conducts a comparative analysis of the influencing mechanisms of different indicators on LE in both developed and developing countries, with conclusions as follow: (1) GDP per capita and the percentage of forest area to land area have a positive impact on LE in developed countries; however, they have a negative impact on LE in developing countries. Total public expenditure on education as a percentage of GDP and fertilizer consumption have a negative impact on LE in developed countries; however, they have a positive impact on LE in developing countries. Gini coefficient and average annual exposure to PM2.5 have no significant effect on LE in developed countries; however, they have a negative impact on LE in developing countries. Current healthcare expenditures per capita have a negative impact on LE in developed countries, and there is no significant impact on LE in developing countries. (2) The urbanization rate has a significant positive impact on LE in both developed countries and developing countries. Carbon dioxide emissions have a negative impact on LE in both developed and developing countries. (3) In developed countries, GDP per capita has the greatest positive impact on LE, while fertilizer consumption has the greatest negative impact on LE. In developing countries, the urbanization rate has the greatest positive impact on LE, while the Gini coefficient has the greatest negative impact on LE. To improve and prolong LE, it is suggested that countries should prioritize increasing GDP per capita and urbanization level. At the same time, countries should also work on reducing the Gini coefficient and formulating appropriate healthcare and education policies. On the other hand, countries should balance between economic development and environmental protection, putting the emphasis more on environmental protection, reducing environmental pollution, and improving the environment’s ability of self-purification.

scholarly journals The Impact of Public Expenditure on Economic Growth: A Review of International Literature

2019 ◽  
Vol 19 (2) ◽  
pp. 81-101
Author(s):  
Sheilla Nyasha ◽  
Nicholas M. Odhiambo
Keyword(s):  
Economic Growth ◽  
Empirical Evidence ◽  
Government Spending ◽  
Public Expenditure ◽  
Negative Impact ◽  
Positive Impact ◽  
Government Expenditure ◽  
Empirical Literature ◽  
The Impact ◽  
The Relationship

Abstract Research background: Although a number of studies have been conducted on the relationship between public expenditure and economic growth, it is difficult to tell with certainty whether or not an increase in public expenditure is good for economic growth. This lack of consensus on the results of the previous empirical findings makes this study of paramount importance as we take stock of the available empirical evidence from the 1980s to date. Purpose: In this paper, theoretical and empirical literature on the relationship between government expenditure and economic growth has been reviewed in detail. Focus was placed on the review of literature that assessed the impact of government spending on economic growth. Research Methodology: This study grouped studies on the impact of public expenditure on economic growth based on their results. Three groups emerged – positive impact, negative impact and no impact. This was followed by a review of each relevant study and an evaluation of which outcome was more prevalent among the existing studies on the subject. Results: The literature reviewed has shown that the impact of government spending on economic growth is not clear cut. It varies from positive to negative; with some studies even finding no impact. Although the impact of government spending on economic growth was found to be inconclusive, the scale tilts towards a positive impact. Novelty: The study provides an insight into the relationship between public expenditure and economic growth based on a comprehensive review of previous empirical evidence across various countries since the 1980s.

scholarly journals Approaches to evaluating the effectiveness of investments in higher education

2021 ◽  
Vol 53 (5) ◽  
pp. 512-529
Author(s):  
Aleksander P. Tsypin ◽  
◽  
Anna A. Firsova ◽  
Keyword(s):  
Higher Education ◽  
Economic Growth ◽  
Institutional Environment ◽  
Positive Impact ◽  
Innovation Policy ◽  
Social Progress ◽  
Gdp Per Capita ◽  
Federal State ◽  
Higher Education System ◽  
Per Capita

Introduction. The role of the importance of higher education in the formation of human capital as a strategic resource of social progress and sustainable development of the country determines the relevance of studies that allow assessing the interdetermination of education and economic growth. The purpose of the article is to identify approaches to assessing the effectiveness of investments in higher education and modeling their impact on the economic growth of post-Soviet countries. Materials and methods. The methodological basis of the study is testing the author's hypothesis and econometric modeling of the influence of macroeconomic indicators characterizing the state of the higher education system on the resulting indicator of gross domestic product per capita as an indicator of economic growth according to data from 15 post-Soviet countries. Methods of economic analysis, statistical and econometric methods were used. For empirical analysis, we used statistical data from the Federal State Statistics Service of the Russian Federation, the World Bank, and the United Nations. Results. The research hypothesis about the positive impact of spending on higher education on the economic growth of the post-Soviet countries has been confirmed. The greatest response to GDP per capita is observed from the indicators "Spending on research and development" and "Admission of high school graduates to higher education". Prediction of the obtained models shows the possibility of a significant increase in GDP per capita with an increase in spending on higher education with a corresponding congruent development of the institutional environment of the post-Soviet countries. Taking into account the identified factors makes it possible to determine priorities for a balanced education and innovation policy in the post-Soviet countries. Conclusions. Empirically substantiated the need to increase investment in the higher education sector to accelerate economic growth and level economic inequality, which must be taken into account when implementing policies in the context of structural reforms in higher education in post-Soviet countries and determining the amount of investment in higher education.

scholarly journals PENGARUH PMA, PMDN, TPAK, PDRB PERKAPITA, PENGELUARAN PEMERINTAH TERHADAP DISPARITAS PENDAPATAN JAWA

2020 ◽  
Vol 3 (2) ◽  
pp. 21-34
Author(s):  
Lorentino Togar Laut ◽  
Arinda Sita Putri ◽  
Yustirania Septiani
Keyword(s):  
Economic Growth ◽  
Labor Force ◽  
Labor Force Participation ◽  
Foreign Investment ◽  
Government Spending ◽  
Gdp Per Capita ◽  
Domestic Investment ◽  
Economic Prosperity ◽  
Income Disparities ◽  
Per Capita

AbstrakDistribusi pendapatan di Pulau Jawa masih belum merata, pertumbuhan ekonomi di Pulau Jawa belum mampu mencapai kesejahteraan ekonomi yang merata. Sehingga penelitian ini bertujuan untuk mengetahui bagaimana pengaruh penanaman modal asing, penanaman modal dalam negeri, tingkat partisipasi angkatan kerja, PDRB perkapita, dan pengeluaran pemerintah terhadap disparitas pendapatan di Pulau Jawa tahun 2008-2018. Jenis data adalah data sekunder yang bersumber dari Badan Pusat Statistik Indonesia dan Badan Koordinasi Penanaman Modal. Analisis data menggunakan regresi data panel Eviews 7. Hasil penelitian menunjukkan bahwa penanaman modal asing, penanaman modal dalam negeri dan pengeluaran pemerintah tidak berpengaruh signifikan terhadap disparitas pendapatan di Pulau Jawa tahun 2008-2018. Sedangkan variabel tingkat partisipasi angkatan kerja, PDRB perkapita, berpengaruh signifikan terhadap disparitas pendapatan di Pulau Jawa tahun 2008-2018. Dari seluruh variabel berpengaruh secara simultan terhadap disparitas di Pulau Jawa tahun 2008-2018.Kata Kunci :  Disparitas pendapatan; Kesejahteraan Ekonomi; Pertumbuhan Ekonomi;AbstractThe distribution of income in Java Island is still uneven, economic growth in Java has not been able to achieve equitable economic prosperity. So this study aims to determine how the effect of foreign investment, domestic investment, labor force participation rate, GDP per capita, and government spending on income disparities in Java in 2008-2018. The type of data is secondary  data sourced from the Indonesian Central Bureau of Statistics and the Investment Coordinating Board. Data analysis used Eviews 7 panel data regression. The results showed that foreign investment, domestic investment and government spending did not have a significant effect on income disparities in Java in 2008-2018. Meanwhile, the variable of the level of labor force participation, GDP per capita, has a significant effect on income disparities in Java in 2008-2018. Of all the variables simultaneously influence disparities in Java in 2008-2018. Keywords :  Income disparity; Economic Prosperity; Economic growth;

scholarly journals Disaggregated Analysis of Foreign Trade Impact on Economic Growth; Reflecting on the Nigeria Experience

2019 ◽  
pp. 1-15
Author(s):  
Dada, Matthew Abiodun
Keyword(s):  
Economic Growth ◽  
Foreign Trade ◽  
Negative Impact ◽  
Positive Impact ◽  
Consumer Price Index ◽  
Government Expenditure ◽  
Cointegration Analysis ◽  
Consumer Prices ◽  
Oil Export ◽  
Oil Sector

This study conducted a disaggregated analysis of foreign trade impact on economic growth using Nigeria historical data. The data used spans the period 1981-2017 on variables such as foreign trade decomposed into four components namely; oil import, oil export, non-oil import, and non-oil export. Others are GDP, aggregated government expenditure data and consumer price index. The variables were sourced from the Central Bank of Nigeria [CBN] Statistical Bulletin [latest edition] augmented with World Development Indicator [WDI], latest version and CBN Annual Report [various issues].  Models were formulated with and without recession dummy variable and estimated using (FMOLS) technique. Variables were tested and found to be non-stationary at level. They become stationary after first differencing, meaning that all variables exhibit a I[1] process. The group of I(1) variables were found to be cointegrated after testing for cointegration following a multivariate cointegration analysis proposed by Johansen and Juselius [20]. The result shows that non-oil trade has positive impact on growth while oil trade has negative impact on growth. The negative impact of oil trade declines marginally in recession period.  Both government expenditure and consumer prices have significant positive impact on economic growth. This study strongly recommends that government in her effort to diversifying and repositioning the Nigerian economy should give urgent attention to the non-oil sector in order to boost trade in this sector to enhance economic growth. The study therefore concluded that foreign trade impact on economic growth in Nigeria depends largely on the magnitude of foreign trade resulting from non-oil export.

scholarly journals The Determinants of Non-Performing Loans in the Polish Banking Sector – the Household Loans Portfolio

2022 ◽  
Vol 19 ◽  
pp. 247-258
Author(s):  
Sławomir I. Bukowski ◽  
Aneta M. Kosztowniak
Keyword(s):  
Response Function ◽  
Banking Sector ◽  
Negative Impact ◽  
Positive Impact ◽  
Gdp Per Capita ◽  
Forecast Period ◽  
Lending Rates ◽  
Per Capita ◽  
Main Determinants

The study aims to identify changes in non-performing household loans (NPLs) and their main determinants in the Polish banking sector for the period 2009-2021. Specifically, we look at the main determinants of creditworthiness of households which determine the possibility of repayment of principal installments and interest within the prescribed period. The results of the VECM model confirm the considerable significance of GDP per capita, gross salaries and lending rates to NPL loans of households. The results of the response function show a positive impact of GDP per capita and lending rates on NPLs and a negative impact of real salaries on NPLs. The decomposition of variance in the forecast period confirms an increased level of explanation of NPL by GDP per capita, gross salaries, and the lending rates.

Sign in / Sign up

Export Citation Format

Share Document