scholarly journals The Nexus between Education and Economic Growth: Analyzing Empirically a Case of Middle-Income Countries

2020 ◽  
Vol 3 (2) ◽  
pp. 43-60
Author(s):  
Lamia Jamel ◽  
Monia Ben Ltaifa ◽  
Ahmed K Elnagar ◽  
Abdelkader Derbali ◽  
Ali Lamouchi
Keyword(s):  
Economic Growth ◽  
Labour Force ◽  
Sub Saharan Africa ◽  
Gdp Per Capita ◽  
Middle Income ◽  
Middle Income Countries ◽  
The Pacific ◽  
Per Capita ◽  
Sub Saharan ◽  
The Impact

The purpose of this paper is to examine empirically the nexus between education accumulation and economic growth for a sample of middle-income countries through panel data regressions. The sample consists of 28 middle-income countries from various continents: North Africa and the Middle East (6 countries), sub-Saharan Africa (7 countries), Latin America and the Caribbean (8 countries), East Asia and the Pacific (3 countries), and Europe and Central Asia (4 countries). Education is measured by quantitative (average years of labour force study) and qualitative indicators (student scores on international assessments of educational achievements). To test the impact of education accumulation on GDP per capita growth, a static panel is used during the period of study from 1970 to 2014. A dynamic panel is also being developed to estimate the effect of the education stock on the growth rate of GDP per capita. The results confirm the positive and significant impact of the education quantity and quality on economic growth, both in level and variation. The stock of education and its increase are positively affecting the growth. Moreover, this paper’s original findings suggest that the quality of education is more significant than its quantity.

The role of governance in economic development

2014 ◽  
Vol 41 (12) ◽  
pp. 1265-1278 ◽  
Author(s):  
Muhammad Azam ◽  
Chandra Emirullah
Keyword(s):  
Economic Growth ◽  
Inflation Rate ◽  
Gdp Per Capita ◽  
Dependency Ratio ◽  
Control Variables ◽  
Content Type ◽  
The Pacific ◽  
Per Capita ◽  
Openness To Trade ◽  
The Impact

Purpose – The purpose of this paper is to explore the impact of corruption as an important element of weak governance, with control variables such as inflation rate, openness to trade and dependency ratio on gross domestic product (GDP) per capita income of nine selected countries in Asia and the Pacific. Design/methodology/approach – This study is based on an annual panel data covering the period from 1985 to 2012, and a simple multiple regression for empirical investigation is used. Both fixed effects and random effects models were used as analytical techniques. Findings – The study reveals that both corruption and inflation rate are negatively related to GDP per capita and are statistically significant. As to the impacts of the control variables i.e., dependency ratio is found to be negative and openness to trade to be statistically significant which shows a positive impact on GDP per capita. Practical implications – The results resoundingly confirmed the importance of good governance, therefore, reducing endemic corruption and controlling inflation needs to be among the foremost factors for consideration for policymakers in adopting and implementing macroeconomic and public policies. In order to be most effective in tackling corruption, it is important to get to the root of the problem. In light of the study findings, it is suggested that corruption need to be put under control and economies be made more open to attain more benefits and accelerate economic growth and development. Originality/value – Explicitly, this study provides some valuable evidence on the linkage between endemic corruption and economic growth in some Asia and the Pacific countries in particular and on developing world in general. Presumably, this is the first inclusive investigation on the subject under the study in the context of Asia and the Pacific countries and will emphatically contribute to the literature as well.

scholarly journals The problem of economic growth in Sub-Saharan Africa

2020 ◽  
Author(s):  
Senanu Kwasi Klutse
Keyword(s):  
Economic Growth ◽  
Negative Relationship ◽  
Sustainable Growth ◽  
Sub Saharan Africa ◽  
Gdp Per Capita ◽  
Savings Rate ◽  
Wide Range ◽  
Per Capita ◽  
Sub Saharan ◽  
Determinants Of Economic Growth

A wide range of policy-related variables have a persistent influence on economic growth. This has consistently maintained the interest of economists on the determinants of economic growth over the years. There is consensus however that for countries to grow sustainably, a lot of stall must be placed on higher savings rate as this makes it easy for such countries to grow faster because they endogenously allocate more resources to inventive activities. Due to data difficulties in Sub-Saharan Africa (SSA) it is nearly impossible for one to consider important variables such as accumulation of knowledge and human capital when analysing growth sustainability. Studying four lower middle-income countries in SSA – Ghana, Republic of Congo, Kenya and Lesotho – this study tests the hypothesis of sustainable growth by using a Dynamic Ordinary Least Square (DOLS) model to examine the relationship between savings, investment, budget deficit and the growth variable. The results showed that savings had a significant but negative relationship with the GDP per capita (PPP). A Granger Causality test conducted showed that savings does not granger cause GDP per capita (PPP), the HDI index, deficit and investment. This leads to the conclusion that growth in these countries are not sustainable. The study recommends that policy makers focus on the savings variable if these countries will want to achieve sustainable growth.

scholarly journals Does economic growth reduce childhood stunting? A multicountry analysis of 89 Demographic and Health Surveys in sub-Saharan Africa

2020 ◽  
Vol 5 (1) ◽  
pp. e002042 ◽  
Author(s):  
Sanni Yaya ◽  
Olalekan A Uthman ◽  
Michael Kunnuji ◽  
Kannan Navaneetham ◽  
Joshua O Akinyemi ◽  
...  
Keyword(s):  
Economic Growth ◽  
Low Income ◽  
Random Effect ◽  
Sub Saharan Africa ◽  
Low Income Countries ◽  
Gdp Per Capita ◽  
Demographic And Health Surveys ◽  
Per Capita ◽  
Sub Saharan ◽  
Childhood Stunting

BackgroundThere is mixed evidence and lack of consensus on the impact of economic development on stunting, and likewise there is a dearth of empirical studies on this relationship in the case of sub-Saharan Africa. Thus, this paper examines whether economic growth is associated with childhood stunting in low-income and middle-income sub-Saharan African countries.MethodsWe analysed data from 89 Demographic and Health Surveys conducted between 1987 and 2016 available as of October 2018 using multivariable multilevel logistic regression models to show the association between gross domestic product (GDP) per capita and stunting. We adjusted the models for child’s age, survey year, child’s sex, birth order and country random effect, and presented adjusted and unadjusted ORs.ResultsWe included data from 490 526 children. We found that the prevalence of stunting decreased with increasing GDP per capita (correlation coefficient=−0.606, p<0.0001). In the unadjusted model for full sample, for every US$1000 increase in GDP per capita, the odds of stunting decreased by 23% (OR=0.77, 95% CI 0.76 to 0.78). The magnitude of the association between GDP per capita and stunting was stronger among children in the richest quintile. After adjustment was made, the association was not significant among children from the poorest quintile. However, the magnitude of the association was more pronounced among children from low-income countries, such that, in the model adjusted for child’s age, survey year, child’s sex, birth order and country random effect, the association between GDP per capita and stunting remained statistically significant; for every US$1000 increase in GDP per capita, the odds of stunting decreased by 12% (OR=0.88, 95% CI 0.87 to 0.90).ConclusionThere was no significant association between economic growth and child nutritional status. The prevalence of stunting decreased with increasing GDP per capita. This was more pronounced among children from the richest quintile. The magnitude of the association was higher among children from low-income countries, suggesting that households in the poorest quintile were typically the least likely to benefit from economic gains. The findings could serve as a building block needed to modify current policy as per child nutrition-related programmes in Africa.

Political stability as a factor affecting growth in agricultural sub-Saharan African countries

2020 ◽  
Vol 63 (3) ◽  
pp. 160-176
Author(s):  
Katarzyna Świerczyńska ◽  
◽  
Filip Kaczmarek ◽  
Łukasz Kryszak ◽  
◽  
...  
Keyword(s):  
Agricultural Production ◽  
Fixed Effects ◽  
Agricultural Research ◽  
Political Stability ◽  
Sub Saharan Africa ◽  
Gdp Per Capita ◽  
Agricultural Activity ◽  
Per Capita ◽  
Sub Saharan ◽  
The Impact

The agricultural countries of sub-Saharan Africa remain the least economically advanced region of the world, with the relatively lowest quality of life. The agricultural sector plays a particularly important role in the economies of these countries. However, it is underdeveloped as a result of factors such as inadequate agricultural policy, institutional instability, chronic droughts, epidemics, deterioration of the environment, deteriorating infrastructure and insufficient investment in agricultural research in sub-Saharan Africa. The aim of the paper is to examine the impact of political stabilization on the economic growth in these countries. We were also inclined to determine what the interdependences were between political stability and factors important for agricultural activity for both agricultural and non-agricultural sub-Saharan counties in the 1995–2017 period. The methods used in this research included panel models with fixed effects, non-parametric tests and quantile regression. It was found that stabilizing the political situation and lowering the level of conflict risk contributed to the growth of GDP per capita in both agricultural and non-agricultural countries. However, in agricultural countries, it also influenced the modernization of agricultural production methods and a shift in the proportion of agricultural production in the total volume of imports and exports. Furthermore, it was found that political stability contributed to a greater extent to the improvement of GDP per capita in the lowest income countries.

scholarly journals The African tragedy: the effect of democracy on economic growth

2021 ◽  
Author(s):  
Saeed Khodaverdian
Keyword(s):  
Economic Growth ◽  
Child Mortality ◽  
Age Structure ◽  
Sub Saharan Africa ◽  
Gdp Per Capita ◽  
Demographic Changes ◽  
Reduce Child Mortality ◽  
Per Capita ◽  
Sub Saharan ◽  
Malthusian Trap

AbstractWe estimate the effect of democracy on economic growth for the countries in Sub-Saharan Africa in comparison with other countries. We find that in contrast to other countries, democracy in Africa benefits neither GDP per capita nor total GDP. We explain the former by changes in the size of the population and the latter by changes in the age structure of the population. Both demographic changes relate to the finding that unlike in other countries, democracy does not reduce child mortality in Africa. The evidence suggests that without improvements in health, democracy puts Africa on a path toward a Malthusian trap.

scholarly journals Government Expenditure and Economic Growth in Sub-Saharan Africa

2021 ◽  
Vol 7 (4) ◽  
pp. p14
Author(s):  
Dickson Wandeda ◽  
Wafula Masai ◽  
Samuel M. Nyandemo
Keyword(s):  
Economic Growth ◽  
Panel Data ◽  
Low Income ◽  
Government Expenditure ◽  
Output Growth ◽  
Sub Saharan Africa ◽  
Middle Income ◽  
Sub Saharan ◽  
The Impact ◽  
Ssa Countries

The paper sought to investigate the effect government expenditure on economic growth in Sub-Saharan Africa using a panel data for 35 Sub-Saharan African countries for the period 2006-2018. The paper adopted dynamic panel data and estimates were achieved by using two-step system GMM while taking into account the problem of instrument proliferation. The paper provided evidence that education and health expenditure are key determinants of income growth for SSA. The impact of education spending on cross-country income variation is more effective in low income SSA countries than the middle income SSA countries. However, military expenditure on output growth is more effective in improving income level of middle income SSA countries than low income SSA countries. SSA countries should allocate more funding towards education sector and should also avail compulsory and free primary and secondary education. SSA should carry out health reforms which improve primary health and universal health insurance coverage.

scholarly journals The demographic window of opportunity and economic growth at sub-national level in 91 developing countries

2020 ◽  
Author(s):  
Lamar Gerard Alfons Crombach ◽  
Jeroen Smits
Keyword(s):  
Economic Growth ◽  
Rural Areas ◽  
National Level ◽  
Sub Saharan Africa ◽  
Middle Income ◽  
Middle Income Countries ◽  
Dependency Ratios ◽  
Detailed Classification ◽  
Sub Saharan ◽  
Urban And Rural Areas

Data for 91 low- and middle- income countries (LMICs) are used to investigate the effect of the demographic transition on economic growth at sub-national level. We introduce a detailed classification of demographic window (DW) phases, determine how these phases are distributed among and within LMICs, and analyze the relationship between the DW and economic growth for 1,921 urban and rural areas of sub-national regions. Many regions in Asia, Latin America and the Middle East have entered the window, but most of sub-Saharan Africa is still in the traditional or pre-window phase. Multilevel analyses reveal higher growth rates in areas with lower and decreasing dependency ratios. Demographic effects are stronger in rural, more developed and more educated regions. Findings indicate that, in the coming years, the DW might strengthen economic growth in rural areas of LMICs, and particularly if accompanied by investments in education and rural development.

scholarly journals The Demographic Window of Opportunity and Economic Growth at Sub-National Level in 91 Developing Countries

2021 ◽  
Author(s):  
Lamar Crombach ◽  
Jeroen Smits
Keyword(s):  
Economic Growth ◽  
Rural Areas ◽  
National Level ◽  
Sub Saharan Africa ◽  
Window Of Opportunity ◽  
Middle Income ◽  
Middle Income Countries ◽  
Detailed Classification ◽  
Sub Saharan ◽  
Urban And Rural Areas

AbstractData for low- and middle- income countries (LMICs) are used to investigate the effect of the demographic transition on economic growth at sub-national level. We introduce a detailed classification of demographic window phases, determine how these phases are distributed among and within LMICs, and analyze the relationship between the demographic window of opportunity (DWO) and economic growth for 1921 urban and rural areas of sub-national regions within 91 LMICs. Many areas in Asia, Latin America and the Middle East have entered the window, but most of Sub-Saharan Africa is still in the traditional or pre-window phase. Our analyses reveal higher growth rates in areas passing through the DWO. Positive growth effects are particularly strong in rural and more educated regions and in countries with lower levels of corruption. Policy measures aimed at effectively using the DW for achieving growth should combine investments in education and rural development with better governance.

scholarly journals Interannual Variation in Night-Time Light Radiance Predicts Changes in National Electricity Consumption Conditional on Income-Level and Region

Energies ◽  
2019 ◽  
Vol 12 (3) ◽  
pp. 456 ◽  
Author(s):  
Giacomo Falchetta ◽  
Michel Noussan
Keyword(s):  
Interannual Variation ◽  
Electricity Consumption ◽  
Sub Saharan Africa ◽  
Night Time ◽  
Middle Income ◽  
Middle Income Countries ◽  
World Energy ◽  
The Pacific ◽  
Spatio Temporal ◽  
Sub Saharan

Using remotely-sensed Suomi National Polar-orbiting Partnership (NPP)-VIIRS (Visible Infrared Imagery Radiometer Suite) night-time light (NTL) imagery between 2012 and 2016 and electricity consumption data from the IEA World Energy Balance database, we assemble a five-year panel dataset to evaluate if and to what extent NTL data are able to capture interannual changes in electricity consumption within different countries worldwide. We analyze the strength of the relationship both across World Bank income categories and between regional clusters, and we evaluate the heterogeneity of the link for different sectors of consumption. Our results show that interannual variation in nighttime light radiance is an effective proxy for predicting within-country changes in power consumption across all sectors, but only in lower-middle income countries. The result is robust to different econometric specifications. We discuss the key reasons behind this finding. The regions of Sub-Saharan Africa, Middle-East and North Africa, Latin America and the Caribbeans, and East Asia and the Pacific render a significant outcome, while changes in Europe, North America and South Asia are not successfully predicted by NTL. The designed methodological steps to process the raw data and the findings of the analysis improve the design and application of predictive models for electricity consumption based on NTL at different spatio-temporal scales.

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