scholarly journals DOES PUBLIC DEBT HAMPER ECONOMIC GROWTH: EVIDENCE FROM EUROPEAN TRANSITIONAL COUNTRIES

2019 ◽  
Vol 34 (5) ◽  
pp. 1223-1228
Author(s):  
Liza Alili Sulejmani ◽  
Armend Ademi
Keyword(s):  
Economic Growth ◽  
Transition Economies ◽  
Public Debt ◽  
Fixed Effects ◽  
Global Financial Crisis ◽  
Fixed Capital Formation ◽  
Negative Effect ◽  
Per Capita ◽  
The Impact ◽  
Positive Effect

Lately, there has been an increased interest among policy makers and scholars regarding the nexus between public debt and economic growth, with emphasizes on its effects on transition economies, particularly after the last global financial crisis. This paper tries to investigate the impact of public debt on economic growth in the European transition economies, for the time spin 2000-2016, by using Pooled OLS, Fixed effects, Random effects and Hausman – Taylor Instrumental variable (IV). In addition, results reveal that public debt although has positive effect on per capita growth still is statistically insignificant, whereas debt square has negative effect on per capita GDP growth. Further, gross savings, final consumption and fixed capital formation have positive effect on per capita growth, while government expenditures do not show significant impact. Moreover, such results highlight important implications for fiscal policymakers in these countries in order to foster the economic growth in the context of public debt level.

DETERMINANTS OF TOURISM DEMAND IN INDONESIA: A PANEL DATA ANALYSIS

2020 ◽  
Author(s):  
Muryani Muryani ◽  
Mia Fauzia Permatasari ◽  
Miguel Angel Esquivias Padilla
Keyword(s):  
Global Financial Crisis ◽  
Panel Data Analysis ◽  
Real Income ◽  
Relative Price ◽  
Tourism Demand ◽  
Substantial Impact ◽  
Negative Effect ◽  
Per Capita ◽  
The Impact ◽  
Positive Effect

By 2014 Indonesia registered 11.6 million inbound foreign tourists, 135% higher than the year 2000. Since then, government policies to promote tourism flourished. This paper investigates the determinants of inbound tourism from the top nine mayor tourist origin countries into Indonesia covering the period of 2000 to 2014. This research employs a dynamic panel dataset to estimate the impact of per capita real income, relative prices, accommodation capacity, distance and public infrastructure investment on international tourism demand in Indonesia, capturing demand and supply-side effects. The results show that per capita income of tourist, relative price, and available rooms have a positive effect on tourism expenditure in Indonesia, while distance has a negative effect. Dummy variables capture large negative shocks in tourism arising from two terrorist attacks in 2002 and 2005, as well as from the global financial crisis in 2008. Income plays a positive but low impact on tourism demand compared to other nations. The positive effect of prices suggests an advantage of Indonesia in competitive tourism prices. Nevertheless, low prices also denote low value in tourism services. The substantial impact of accommodation may indicate that significant effects of tourism are allocated in lodging, minimizing the impact on other sectors.

scholarly journals Determinants of Tourism Demand in Indonesia: A Panel Data Analysis

2020 ◽  
Vol 25 (1) ◽  
pp. 77-89
Author(s):  
Muryani ◽  
Mia Fauzia Permatasari ◽  
Miguel Angel Esquivias
Keyword(s):  
Global Financial Crisis ◽  
Panel Data Analysis ◽  
Real Income ◽  
Relative Price ◽  
Tourism Demand ◽  
Substantial Impact ◽  
Negative Effect ◽  
Per Capita ◽  
The Impact ◽  
Positive Effect

By 2014 Indonesia registered 11.6 million inbound foreign tourists, 135% higher than the year 2000. Since then, government policies to promote tourism flourished. This article investigates the determinants of inbound tourism from the top nine mayor tourist origin countries into Indonesia covering the period of 2000 to 2014. This research employs a dynamic panel dataset to estimate the impact of per capita real income, relative prices, accommodation capacity, distance, and public infrastructure investment on international tourism demand in Indonesia, capturing demand- and supply-side effects. The results show that per capita income of tourists, relative price, and available rooms have a positive effect on tourism expenditure in Indonesia, while distance has a negative effect. Dummy variables capture large negative shocks in tourism arising from two terrorist attacks in 2002 and 2005, as well as from the global financial crisis in 2008. Income plays a positive but low impact on tourism demand compared to other nations. The positive effect of prices suggests an advantage of Indonesia in competitive tourism prices. Nevertheless, low prices also denote low value in tourism services. The substantial impact of accommodation may indicate that significant effects of tourism are allocated in lodging, minimizing the impact on other sectors.

scholarly journals Impact of Remittances on Economic Growth: Evidence from Selected West African Countries (Cameroon, Cape Verde, Nigeria and Senegal)

2015 ◽  
Vol 1 (2) ◽  
Author(s):  
Muriel Adarkwa ◽  
Keyword(s):  
Economic Growth ◽  
Time Series Data ◽  
West African ◽  
Cape Verde ◽  
Series Data ◽  
African Countries ◽  
The World Bank ◽  
Negative Effect ◽  
The Impact ◽  
Positive Effect

Remittances from abroad play a key role in the development of many West African countries. Remittances tend to increase the income of recipients, reduce shortage of foreign exchange and help alleviate poverty. This research examines the impact of remittances on economic growth in four selected West African countries: Cameroon, Cape Verde, Nigeria and Senegal. Using developmentalist, structuralist and pluralist views on remittances, a linear regression was run on time series data from the World Bank database for the period 2000–2010. After a critical analysis of the impact of remittances on economic growth in these four countries, it was found that inflow of remittances to Senegal and Nigeria has a positive effect on these countries’ gross domestic product whereas for Cape Verde and Cameroon it had a negative effect. Cameroon benefitted the least from remittances and Nigeria benefitted the most within the period. One contribution of this study is the finding that remittance inflows need to be invested in productive sectors. Even if remittances continue to increase, without investment in productive sectors they cannot have any meaningful impact on economic growth in these countries.

scholarly journals Domestic Debt and Economic Growth in Tanzania

2018 ◽  
Vol 1 (1) ◽  
pp. p207
Author(s):  
Josephat Lotto ◽  
Catherine T. Mmari
Keyword(s):  
Economic Growth ◽  
Growth Rate ◽  
Gdp Growth ◽  
Gdp Growth Rate ◽  
Domestic Debt ◽  
Negative Effect ◽  
The Government ◽  
The Impact ◽  
The Relationship ◽  
Positive Effect

The main objective of this paper was to examine the impact of domestic debt on economic growth in Tanzania for the period 1990 to 2015 using Ordinary Least Square (OLS) regression method to estimate the effects. The study finds that there is an inverse but insignificant relationship between domestic debt and the economic growth of Tanzania as measured by GDP annual growth. The inverse relationship between domestic debt and GDP may be caused by different factors such as; increased trend in domestic borrowing, government lenders’ profile dominated by commercial banks and non-bank financial institutions which promotes the “crowding out” effect; the nature of the instruments used by the government ; the improper use of the domestic borrowed funds which may include funding budgetary deficits, paying up principal and matured obligations on debt, developing financial markets as well as fund other government operations. Other control variables relate with the GDP as predicted. For example, Inflation (INF) has a negative effect on the GDP growth rate, but the relationship is not statistically significant, while gross capital formation (GCF) has a positive statistically significant effect on GDP growth rate. Furthermore, foreign direct investment (FDI) showed a positive effect on the GDP growth rate and export (X) has a positive effect on GDP growth rate, and the relationship is statistically significant explaining that if a country applied an export-led growth economic strategy it enjoys the gains of participating in the world market. This means that an increase in export stimulates demand for goods which leads to increase in output, and as a country’s output increases, the economic performance also takes a similar trend. Finally, government expenditure (GE) had a negative effect on the GDP growth rate which may be explained by the increased government expenditures which are funded by either tax or borrowing. Therefore, what is required for countries like Tanzania is to have better debt management strategies as well as prudential financial management while maintaining to remain within the internationally acceptable debt level of 45% of GDP and maintain a GDP growth rate of not less than 5%. It is important for the country to realize from where to borrow from, the tenure, the risks involved and limitations to borrowing and thus set the right balance of combination of both kinds of debt. Another requirement is to properly utilize the borrowed funds. The central government’s objective should be to use the funds in more development-oriented projects that bring positive returns to the economic development.  The government should not only create a right environment and policies for investment to attract investment from domestic and foreign sources but also be cautious about the kind of investments that the foreign investors make.

scholarly journals PENGARUH PENGELUARAN PEMERINTAH TERHADAP PERTUMBUHAN EKONOMI DI PROVINSI BENGKULU

2015 ◽  
Vol 3 (2) ◽  
Author(s):  
Merri Anitasari ◽  
Ahmad Soleh
Keyword(s):  
Economic Growth ◽  
Government Spending ◽  
Secondary Data ◽  
Positive Outcome ◽  
Significant Positive Effect ◽  
Regional Autonomy ◽  
Negative Effect ◽  
The Government ◽  
The Impact ◽  
Positive Effect

Merri Anitasari, Ahmad Soleh; Pengaruh Pengeluaran Pemerintah Terhadap Pertumbuhan Ekonomi Di Provinsi Bengkulu. Tujuan dari penelitian ini adalah untuk menganalisis pengaruh dari pengeluaran pemerintah terhadap pertumbuhan ekonomi di provinsi Bengkulu dengan menggunakan data sekunder periode pengamatan tahun 2001-2012 yang diperoleh dari Badan Pusat Statistik. Hasil analisis dengan menggunakan SPSS 16 menunjukkan bahwa pengeluaran pemerintah berpengaruh positif dan signifikan terhadap pertumbuhan ekonomi di provinsi Bengkulu. Jika pemerintah menaikkan pengeluaran pemerintah sebesar 1 miliar rupiah, maka akan dapat meningkatkan pertumbuhan ekonomi sebesar 1,17 % per tahun. Sedangkan pengaruh pengeluaran pemerintah terhadap pertumbuhan ekonomi di daerah kabupaten/kota menunjukkan bahwa dari jumlah 10 kabupaten/kota di Provinsi Bengkulu, kabupaten Rejang Lebong dan kota Bengkulu yang memiliki hasil bahwa pengeluaran pemerintah berpengaruh positif dan signifikan terhadap pertumbuhan ekonomi di daerahnya. Kabupaten Bengkulu Utara memiliki pengaruh yang negatif sedangkan 7 kabupaten lainnya memiliki hasil yang positif namun tidak signifikan. Sebagian besar kabupaten di Provinsi Bengkulu dikategorikan sebagai daerah yang baru membangun yang merupakan hasil pemekaran pasca pemberlakuan otonomi daerah. Sehingga dalam jangka pendek pengeluaran pemerintah dianggap belum mampu menstimulus kegiatan sektor-sektor perekonomian serta memacu pertumbuhan ekonomi di daerah tersebut.Merri Anitasari, Ahmad Soleh; Impact of Government Spending on Economic Growth In Bengkulu Province. The purpose of this study was to analyze the impact of government spending on economic growth in the province of Bengkulu using secondary data observation period 2001 - 2012 year were obtained from the Central Bureau of Statistics. Results of analysis using SPSS 16 shows that government spending and significant positive effect on economic growth in the province ofBengkulu. If the government raised government spending by 1 billion dollars, it will be able to boost economic growth by 1.17% per year. While the effect of government spending on economic growth in the district/city showed that of a total of 10 districts cities in Bengkulu province, Rejang Lebong district and Bengkulu City which has the result that government spending and significant positive effect on economic growth in the region. North Bengkulu has a negative effect, while seven other districts have a positive outcome, but not significantly. Most districts in the province of Bengkulu categorized as new building is the result of the division after the implementation of regional autonomy. So in the short-term government spending is considered not able to stimulate activity sectors of the economy and spur economic growth in the area.Key Word: Government Spending, Economic Growth, Bengkulu Province

scholarly journals The Impact of Remittances on Poverty Alleviation in Selected Emerging Markets

2018 ◽  
Vol 21 (2) ◽  
pp. 51-68 ◽  
Author(s):  
Kunofiwa Tsaurai
Keyword(s):  
Economic Growth ◽  
Emerging Markets ◽  
Fixed Effects ◽  
Poverty Reduction ◽  
Ordinary Least Squares ◽  
Income Per Capita ◽  
Per Capita ◽  
Migrant Remittances ◽  
The Impact ◽  
Poverty Levels

The study explored the impact of remittances on poverty in selected emerging markets. On the theoretical front, the optimistic view argued that remittances inflow into the labour exporting country reduces poverty whereas the pessimistic view proponents said that remittances dependence syndrome retards both economic growth and income per capita. Separately, using two measures of poverty [the poverty headcount ratio at US $1.90 and US $3.10 a day (% of population)] as dependent variables, the fixed effects approach produced results which supported the remittances led poverty reduction (optimistic) hypothesis whereas the pooled ordinary least squares (OLS) framework found that remittances inflow into the selected emerging markets led to an increase in poverty levels. The implication of the findings is that emerging markets should put in place policies that attract migrant remittances in order to reduce poverty levels. They should avoid over‑reliance on remittances as that might retard economic growth and income per capita.

Assessing Growth Impact of Public Debt in Sri Lanka

2020 ◽  
pp. 097674792091747
Author(s):  
Suvra Prokash Mondal ◽  
Biswajit Maitra
Keyword(s):  
Economic Growth ◽  
Sri Lanka ◽  
Public Debt ◽  
Extended Period ◽  
Asian Country ◽  
Policy Implications ◽  
Financial Variables ◽  
Domestic Debt ◽  
Fixed Capital Formation ◽  
The Impact

Whether public debt spurs economic growth is an unsettled issue in both theoretical and empirical grounds. The issue has attracted lots of attention to economists and policymakers in recent times. This article addresses the debt–growth issue in the case of a small emerging south Asian country—Sri Lanka. The impact of external, domestic debt, in association with a set of financial variables on income, is assessed for an extended period of 1965–2017, and also for the post-reform period of 1978–2017. The article finds some robust evidence that external debt is not beneficial; rather it depresses income. The impact of domestic debt and foreign aid on income is trivial. On the other hand, gross fixed capital formation and money supply spur income growth, whereas the impact of openness to trade is dismaying, and all these findings are invariant across the extended period and the post-reform periods. The results have policy implications for the long-term sustained economic growth of Sri Lanka. JEL: H63, F35, O40, C22

scholarly journals Pengaruh Kinerja Keuangan Pemerintah Daerah Terhadap Pertumbuhan Ekonomi (Studi Pada Daerah Pemekaran di Pulau Sumatera)

2021 ◽  
Vol 24 (2) ◽  
pp. 1-17
Author(s):  
Reza Rinova ◽  
Fajar Gustiawaty Dewi
Keyword(s):  
Economic Growth ◽  
Time Series ◽  
Financial Performance ◽  
Secondary Data ◽  
Income Transfer ◽  
Dependency Ratios ◽  
Negative Effect ◽  
Transfer Income ◽  
The Impact ◽  
Positive Effect

Expansion of regions is aimed to prosper the community. In 2018 as many as 314 proposals for expansions could not be approved by the Minister of Home Affairs because the impact was not in line with expectations. This study aims to see the direct effect of the financial performance of the newly formed government regions on economic growth. Expansion area are divided into two forms, namely the old expansion area and the new expansion area. The financial performance of the local government is measured using the ratio of decentralization rates, regional dependency ratios, and the effectiveness of LGR (Locally-Generated Revenue) ratios. Population in this study is all the expansion areas of districts/cities on the island of Sumatera. Time-series secondary data year 2013-2017 covering regional original income, total regional income, transfer income, regional original income budget, and realization of Gross Regional Domestic Product (GRDP) were used. Using SPSS tool, the results shows that the ratio of the degree of decentralization has a negative effect on economic growth. Furthermore, regional dependency ratios do not affect economic growth. The LGR effectiveness ratio has a positive effect on economic growth.

scholarly journals Environmental Kuznets Curve: An Empirical Analysis in the Indian Context

2018 ◽  
Vol 4 (02) ◽  
Author(s):  
Sakshi Gambhir
Keyword(s):  
Economic Growth ◽  
Co2 Emissions ◽  
Environmental Kuznets Curve ◽  
Global Financial Crisis ◽  
Environmental Damage ◽  
Kuznets Curve ◽  
Cubic Form ◽  
Indian Context ◽  
Per Capita ◽  
The Impact

The relationship between economic growth and environmental quality has been much under dispute. According to the EKC (Environmental Kuznets Curve) hypothesis, environmental damage increases in the early stages of economic growth, but diminishes once nations reach higher levels of income. While the notion EKC is well established, there is controversy about its shape, incidence and determinants. In this paper, we model EKC with the variables of GDP and CO2 emissions (aggregate and per capita) using alternative model specifications to bridge the gap between conventional and modern EKC literature. We also place the theoretical construct of EKC into a policy-oriented framework by incorporating the impact of four global policy periods namely, liberalisation, globalisation, world recovery and global financial crisis. We substantiate a cubic form of EKC in the Indian context for the time period 1991 to 2014. With aggregate CO2 emissions as the dependent variable, the linear, quadratic and cubic terms are all significant with the expected signs, which confirm an N-shaped EKC for India. Even with per capita emissions as the dependent variable, existence of an N-shaped EKC is established. In this case however, evidence on the cubic term is rather weak which points towards the difference in socio-psychological factors that influence the revival of upturn in the case of India. The policy period analysis does not show any distinct results, which could be due to contradictory effects on different variables and volatility in these variables.

scholarly journals Pengaruh Kemampuan Keuangan dan Posisi Fiskal Terhadap Pertumbuhan Ekonomi Kabupaten/Kota Di Provinsi Kalimantan Barat

2016 ◽  
Vol 5 (1) ◽  
pp. 24
Author(s):  
Anggatia Ariza
Keyword(s):  
Economic Growth ◽  
Panel Data ◽  
Local Government ◽  
Fixed Effects ◽  
Local Autonomy ◽  
Financial Capability ◽  
West Kalimantan ◽  
Negative Effect ◽  
Per Capita ◽  
Direct Expenditure

The implementation of local autonomy and decentralization empowers the local government tomanage their own area largely and properly. The research aims to examine the financial andfiscal position and their effects towards the economic growth of the regencies or cities in WestKalimantan. Moreover, the1 financial capability is proxied by the proportion of PDS while thefiscal position is determined by the direct expenditure per capita to verify their effects to theeconomic growth. This research, furthermore, utilizes the panel data from 12 regencies/citiesthroughout West Kalimantan in 2006-2010 and used Fixed Effects Method. As a result, theproportion of PDS affects negatively and significantly the economic growth, while the directexpenditure per capita has slightly a negative effect towards the economic growth ofregencies/cities in West Kalimantan. 

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