scholarly journals Foreign Aid, Debt, Tax Revenue and Government Spending in South Asia: A Panel Analysis

2021 ◽  
pp. 17-28
Author(s):  
Rozina Akter ◽  
Sakila Aziz Nila
Keyword(s):  
Foreign Aid ◽  
South Asia ◽  
South Asian ◽  
Government Spending ◽  
Positive Impact ◽  
Tax Revenue ◽  
Asian Countries ◽  
Explanatory Variables ◽  
Aid Dependency ◽  
The Impact

Purpose: Over the years, tax revenue, foreign aid, and debt play a prominent role in finance the South Asian countries’ government spending. Thus, this paper aims to analyze the effects of foreign aid, debt, and tax revenue on government spending in South Asia. Methodology: The study considers six south Asian countries over 25 years from 1990-2014. The panel data method is used to analyze the impact of explanatory variables on the dependent variable. Findings: From the empirical analysis, it is found that foreign aid, tax revenue, and total debt have a positive impact on government spending. It indicates that when these variables increase, government spending also grows significantly. However, a higher interest rate ebbs the volume of receiving debt among the sampled countries. Originality: Under this circumstance, this paper advocate that rational use of tax revenue may abate the aid dependency and debt burden in South Asian countries.

scholarly journals Effects of Foreign Aid and Remittances Flows on Saving and Investment in Developing South Asia: Panel Data Study

2021 ◽  
pp. 21-27
Author(s):  
Md. Ahasan Ul Haque ◽  
Md. Golam Kibria ◽  
Md. Muhaiminul Islam Selim
Keyword(s):  
Panel Data ◽  
Foreign Aid ◽  
South Asia ◽  
South Asian ◽  
Positive Impact ◽  
Threshold Level ◽  
Foreign Assistance ◽  
Asian Countries ◽  
Minimum Threshold ◽  
The Impact

In this study, we investigate the impact of remittances and foreign aid (official foreign assistance) on investment and saving in South Asian countries. We also analyze the comparative influence of remittances and foreign aid in stimulating saving and investment. We use a sample of five South Asian countries over the period 1985-2018 and employ OLS and 2SLS methods to estimate the effect of remittance and foreign aid on saving and investment. The result reveals that remittance has a positive impact on saving but has no significant effect on investment and shows that foreign aid has no significant impact on saving but negatively influences investment. In line with our results, a rise in 10 percent of remittances in South Asia raises savings by 1.6 percent in the OLS estimates and by 1.7 percent when we use 2SLS. At the same time for a 10% increase in foreign aid decreases saving by 4.3% and 3.3%, respectively, in two methods. For the second regression, an increase in 10% remittances hamper investment by 1.3% and 1% for OLS and 2SLS, respectively. And for the analogous 10% increase in foreign aid decrease investment by 5.4% and 5.2%, respectively. However, if foreign aid is efficiently used, it can be an important complement to remittances by permitting households to overcome the minimum threshold level and they can use a bigger portion of their remittances for savings and investment motive.

scholarly journals Causal nexus between fiscal deficit and economic growth

2016 ◽  
Vol 4 (8) ◽  
pp. 1-19
Author(s):  
Ravinthirakumaran Navaratnam ◽  
Kasavarajah Mayandy
Keyword(s):  
Economic Growth ◽  
Sri Lanka ◽  
South Asian ◽  
Negative Impact ◽  
Positive Impact ◽  
Cointegration Analysis ◽  
Annual Data ◽  
Fiscal Deficit ◽  
Asian Countries ◽  
The Impact

The impact of fiscal deficit on economic growth is one of the most widely debated issues among economists and policy makers in both developed and developing countries in the recent period. This paper seeks to examine the impact of fiscal deficit on economic growth in selected South Asian countries, namely, Bangladesh, India, Nepal, Pakistan and Sri Lanka using time series annual data over the period 1980 to 2014. The paper uses cointegration analysis, error correction modelling and Granger causality test under a Vector Autoregression (VAR) framework. The results from this study confirmed that the fiscal deficit has a negative impact on economic growth in the South Asian countries considered in this study except Nepal, which confirmed the positive impact. The results also highlighted that the direction of causality for the SAARC countries is mixed where fiscal deficit causes economic growth for Bangladesh, Nepal and Pakistan, but the reverse is true for India and Sri Lanka.  

scholarly journals The Impacts of Tourism and Governance on CO2 Emissions in Selected South Asian Countries.

ETIKONOMI ◽  
2021 ◽  
Vol 20 (2) ◽  
pp. 385-396
Author(s):  
Zubaria Andlib ◽  
Julio Salcedo-Castro
Keyword(s):  
Co2 Emissions ◽  
South Asian ◽  
Positive Impact ◽  
Technological Advancement ◽  
Asian Countries ◽  
The Government ◽  
Tourism Governance ◽  
The Impact ◽  
The Relationship ◽  
The Empirical Analysis

Due to the increase in international connectivity and technological advancement, tourism has gained immense momentum in the recent past. Despite its favorable impacts, tourism has proved to be one of the significant contributors to increasing CO2 emissions.  This study attempts to understand better the relationship between tourism, governance, and the CO2 emissions nexus in selected South Asian countries. The study obtained data from WDI and applied FMOLS, DOLS, and FEOLS methods from 1995-2019. It is observed that tourism has a significant and positive impact on CO2 emissions in the case of selected South Asian countries. Concerning the impact of governance on CO2 emissions, it is observed that governance effectiveness is negatively associated with CO2 emissions. It is evident from the empirical analysis that CO2 emissions can be mitigated with effective government policies. Furthermore, it is also suggested that the government aim at effective environmental policies, and attention should be given to sustainable tourism in the case of South Asian economies.JEL Classification: Q50, Q56, Q58How to Cite:Andlib, Z., & Salcedo-Castro, J. (2021). The Impacts of Tourism and Governance on CO2 Emissions in Selected South Asian Countries. Etikonomi, 20(2), xx – xx. https://doi.org/10.15408/etk.v20i2.17499.

Remittances-inflation nexus in South Asia: an empirical examination

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Hem C. Basnet ◽  
Ficawoyi Donou-Adonsou ◽  
Kamal Upadhyaya
Keyword(s):  
South Asia ◽  
South Asian ◽  
Panel Cointegration ◽  
Asian Countries ◽  
The South ◽  
Empirical Examination ◽  
Content Type ◽  
Long Run ◽  
Short Run ◽  
The Impact

Purpose The purpose of this paper is to examine whether remittances induce inflation in South Asian countries, namely, Bangladesh, India, Nepal, Pakistan and Sri Lanka. Design/methodology/approach This study uses panel cointegration and Pooled Mean Group techniques covering from 1975 to 2017 to estimate the long-run and the short-run effect of remittances on inflation. Findings The estimated results suggest that the inflationary impact of remittances in South Asia depends on the time length. The inflow tends to lower inflation in the short run, whereas it increases in the long run. The findings highlight the regional peculiarity in the impact of remittances on the price level. The results are statistically significant and are confirmed by the Mean Group estimation as well. Originality/value Most past studies investigating the nexus between remittances and inflation in the South Asian context examine either these countries individually or include them all in a pool of big cross-sections. This study contributes to the literature by addressing this void. The South Asian countries should not generalize the earlier findings on the link between remittance inflows and inflation, as the short-run effect is different from the long run. Thus, these countries would be better off designing long-run policies that are different from the short run.

scholarly journals The effect of military spending on economic growth in South Asian countries during the years 2004 to 2016

2018 ◽  
pp. 129-144
Keyword(s):  
Economic Growth ◽  
South Asian ◽  
Method Of Moments ◽  
Positive Impact ◽  
Generalized Method Of Moments ◽  
Military Expenditure ◽  
Asian Countries ◽  
The Past ◽  
Military Expenditures ◽  
The Impact

Governments and states initiate to up grate social welfare and prosperity through military expenditure and security expenses. On the hand, politicians concentrate on economic growth as a measure of social wafer and prosperity. Empirically growth has dramatically improved the livelihood, comfort, and consumption of a large number of people, as compared to the past people now have access to more nutrition, clothing, better educational material and qualified services. In order to examine empirically the impact of military expenditure on economic growth, this paper follow the Effect of Military Expenditures on Economic Growth (in South Asia during 2004 to 2016) as main objective. After Diagnostic Tests Generalized Method of Moments (GMM) has been used. The findings of the research indicate positive impact of Military Expenditure on Economic Growth in South Asian Countries. However, the impact of Import, Export and Investment are Statistically Significant on economic growth of South Asian Countries.

scholarly journals Do Institutional Variables affect FDI inflows? A Panel Data Analysis of South Asian Countries

2018 ◽  
Vol 4 (02) ◽  
Author(s):  
Vandana Goswami
Keyword(s):  
Panel Data ◽  
South Asian ◽  
Positive Impact ◽  
Panel Data Analysis ◽  
Asian Countries ◽  
Institutional Variables ◽  
Fdi Inflows ◽  
Regulatory Quality ◽  
The Impact ◽  
Control Of Corruption

The study addresses several questions related to the effect of institutional variables on foreign direct investment inflows in South Asian countries consisting of Afghanistan, Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan and Sri Lanka. The institutional variables taken in the study include control of corruption, political instability, quality of governance, regulatory quality, and rule of law. The paper uses panel data for the period of 1990-2015. The objective of this paper is to study the impact of institutional determinants on FDI inflows in eight South Asian countries. The main findings of the paper indicate that government effectiveness and trade openness are having a positive impact on FDI inflows while control of corruption and regulatory quality have negatively affected FDI inflows in these eight South Asian Countries.

scholarly journals The Impact of R&D Input on Technological Innovation: Evidence from South Asian and Southeast Asian Countries

2020 ◽  
Vol 2020 ◽  
pp. 1-11
Author(s):  
Lei Lv ◽  
Yuchen Yin ◽  
Yuanchang Wang
Keyword(s):  
Southeast Asia ◽  
South Asia ◽  
Technological Innovation ◽  
South Asian ◽  
Fixed Effect ◽  
Technical Innovation ◽  
Multiple Models ◽  
Asian Countries ◽  
The Impact ◽  
Southeast Asian Countries

In the era of the rapid development of knowledge economy and science, all countries have thought highly of technical innovation and greatly increased the R&D input for it. However, the research on the impact of R&D input on technical innovation lacks specialized, cross-country, and cross-time investigations, and especially, the research on small countries such as South Asia and Southeast Asia where technical innovation is relatively backward. So, does R&D input in South Asia and Southeast Asia have an impact on technical innovation and to what extent? Let us analyze the panel data of 18 countries in South Asia and Southeast Asia from 2001 to 2018, use three methods of unit root test to test the stationarity of variables, adopt the Kao cointegration test to test a stable long-term relationship between the variables, and then, respectively, carry out the transnational regression analysis of the difference between patent applications, scientific journal articles, and the R&D input with multiple models. Finally, the heteroscedasticity robust fixed-effect model is found to be the most suitable for this study after the comparative analysis of multiple models. Through the fixed-effect intercepts of each country in the heteroscedasticity robust fixed-effect models, South Asian and Southeast Asian countries are divided into three levels, and each level lists a set of equations. So, the following conclusions are drawn: both R&D expenditure and manpower input in South Asia and Southeast Asia significantly promote technological innovation; the efficiency of both R&D expenditure and manpower input promoting technological innovation in South Asia and Southeast Asia is low and needs to be improved. These conclusions provide references for policymakers in some countries where technological innovation is relatively backward, especially in Cambodia, Lao PDR, Myanmar, Timor-Leste, Bangladesh, Bhutan, Maldives, and Nepal.

scholarly journals Financial market integration and co-movements among the growth rates: Evidence from South Asian countries

2011 ◽  
Vol 8 (2) ◽  
pp. 203-216
Author(s):  
Piyadasa Edirisuriya
Keyword(s):  
Economic Growth ◽  
South Asia ◽  
South Asian ◽  
Financial Market ◽  
Growth Rates ◽  
Market Integration ◽  
The European Union ◽  
Asian Countries ◽  
Financial Market Integration ◽  
The Impact

Since the 1980s, South Asian countries have been implementing financial market deregulation policies continuously. Although the process of deregulations has been slow, many countries in the region are heading toward a more integrated market despite current global turmoil. Financial market integration in South Asia could have synchronised economic activities of the countries in the region due to the impact of consolidation. This suggests that when the region’s economies grow/contract, all countries could follow the same path demonstrating a co-movement of growth rates among countries. When economic growth rates are similar for a region, it may be easier to formulate economic policies to achieve a common goal. As the political leadership of South Asia has agreed to work towards forming an economic block similar to that of the European Union and ASIAN, examining co-movement of growth rates could shed more lights on the issue of the success of market integration in the region. The objective of this study is to study market integration by analysing financial markets, trade and economic growth data to spot whether there is any co-movement of growth rates among South Asian countries due to financial market deregulation policies implemented so far. As findings show mix results, we used region’s governance indicators to examine further and found that weak governance is a serious problem in the South Asian region.

scholarly journals Impact of Remittances on Domestic Investment: A Panel Study of Six South Asian Countries

2020 ◽  
Vol 21 (1) ◽  
pp. 7-30 ◽  
Author(s):  
Ranjan Kumar Dash
Keyword(s):  
South Asia ◽  
South Asian ◽  
Panel Study ◽  
Physical Capital ◽  
Capital Inflows ◽  
Estimation Methods ◽  
Theoretical Argument ◽  
Domestic Investment ◽  
Asian Countries ◽  
The Impact

Remittances inflow to South Asian countries increased significantly and is now one of the major sources of external finance overtaking traditional capital inflows such as foreign direct investment (FDI), foreign portfolio investment (FPI) and aid. However, the role of remittances in economic development has not been examined extensively, particularly for South Asian countries. This article examines the impact of remittances on domestic investment for South Asia over 1991–2017. Advanced panel estimation methods (unit root, cointegration and causality) are employed to account for potential country-specific heterogeneity and the endogeneity problem. Results of this study suggest that remittances increase domestic investment in the short term as well as in the long run for South Asia. This indicates that remittances are used not only for consumption purposes but also for investment activities such as human and physical capital development. The panel causality results suggest the presence of uni-directional causality running from remittances to domestic investment. Therefore, the result of this study supports the theoretical argument and previous empirical studies for other developing countries JEL: C3, 01, F3, F22

scholarly journals Exports and Innovation in Malaysia: the role of Heterogeneity

2021 ◽  
Vol 3 (1) ◽  
pp. 35-54
Author(s):  
YuanFang Chen ◽  
Lim Thye Goh
Keyword(s):  
South Asian ◽  
Low Income ◽  
Positive Impact ◽  
Manufacturing Sector ◽  
Low Income Countries ◽  
Asian Countries ◽  
Cross Sectional ◽  
Innovation Activities ◽  
The Impact

The objective of this paper was to empirically examine the impact of exports on the level of innovation in the manufacturing sector of Malaysia and to focus on the role of heterogeneity in exports by using detailed industry-level cross-sectional data on Malaysia’s manufacturing sector in 2014. Utilising the CDM model, as postulated by Crepon, Duguet & Mairesse (1998), this paper investigated whether exporting to more countries, exporting greater volumes, and exporting greater volumes to high-income countries induced industry to increase its level of innovation. Estimates from the CDM model showed, overall, a positive impact of exports on innovation, more specifically, heterogeneity in exports mattered to industries’ innovating in the manufacturing sector in Malaysia. Additionally, exporting to additional foreign destinations, exporting greater volumes of product, and exporting more products to low-income countries, especially to South Asian and Southeast Asian countries, had a significant influence on inducing industries to engage in innovation activities.

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