scholarly journals Relationship between FDI, Foreign Exchange Earnings through Inbound Tourism and Growth of Indian Economy

2019 ◽  
Vol 8 (4) ◽  
pp. 5096-5102
Keyword(s):  
Economic Growth ◽  
Foreign Exchange ◽  
Tourism Industry ◽  
Influential Factor ◽  
Indian Economy ◽  
Distributed Lag ◽  
Inbound Tourism ◽  
Short Run ◽  
Per Capita

Foreign Direct Investment (FDI) has been playing a crucial role in the development of Indian economy ever since liberalization.The role of FDI, hence, can be discussed from the point of one of much deliberated sectors, tourism, in this case. The current study, thus, is based on investigating an association between FDI, Foreign Exchange Earnings from tourism and per capita growth with respect to Indian economy for a period of 1996-2018. The analysis proves a cointegrating relationship between them throughAuto Regressive Distributed Lag (ARDL) Modelling Approach. It proves FDI to be an influential factor in enhancing foreign exchange earnings from tourism for inbound tourism industry and per capita economic growth. Through Error Correction Model, it is proved that the modelscancorrect seventy-seven- and eighty-three percent imbalances in short run. Applying Granger Causality approach, the study proves per capita economic growth granger causes FDI. Subsequently,is playing a major role in attracting foreign exchange earnings from inbound tourism in India.Finally, the study suggests certain policy measures for enhancing per capita growth that will ultimately promote FDI to augment conditions of tourism industry in Indian economy.

scholarly journals Does the Export-Led Growth Hypothesis Hold for Services Exports in Emerging Economies?

2021 ◽  
Vol 14 (27) ◽  
pp. 63-75
Author(s):  
Okpeku Lilian ONOSE ◽  
◽  
Osman Nuri ARAS ◽  
Keyword(s):  
Economic Growth ◽  
Emerging Economies ◽  
Emerging Countries ◽  
Distributed Lag ◽  
Autoregressive Distributed Lag ◽  
Long Run ◽  
Short Run ◽  
Per Capita ◽  
Positive Effect ◽  
Growth Hypothesis

The export-led growth hypothesis states a positive relationship between the growth of exports and long-run economic growth. This study examines the validity of the export-led growth hypothesis of services exports in 5 emerging economies, including Brazil, India, Nigeria, China, and South Africa (BINCS), for the period of 1980-2019. The study employs the panel mean group autoregressive distributed lag (ARDL) procedure to identify a causal relationship between services exports and gross domestic product (GDP) per capita. The findings show that the export-led growth hypothesis in services only has a positive effect on economic growth in the short run while other variables, including foreign direct investment (FDI), gross capital formation, and labour, increase economic growth in the long run. Hence, the emerging countries should focus more on internal investment to boost growth in the long and short run.

scholarly journals Role of Inflow of Resources on Economic Growth of Nepal

2019 ◽  
Vol 42 (3-4) ◽  
pp. 66-78
Author(s):  
Tilak Singh Mahara ◽  
Naw Raj Bhatt
Keyword(s):  
Economic Growth ◽  
Time Series Data ◽  
Positive Impact ◽  
Empirical Finding ◽  
Series Data ◽  
Data Sets ◽  
Distributed Lag ◽  
Long Run ◽  
Short Run

This study attempts to examine the role of the inflow of resources on the economic growth of Nepal incorporating annual time-series data sets of 45 years from 1975 to 2019. The autoregressive distributed lag approach to cointegration is used to identify the long-run as well as the short-run relationship between the variables. The empirical finding indicates that there is a positive relationship between the inflow of resources and economic growth. Quantitatively, gross national saving, domestic loans, foreign loans, and export earnings have a positive impact on the economic growth in both the long-run as well as short-run for the Nepalese economy. Policies encouraging private sector participation, enlarging efficiency, and effectiveness of public sector projects, and expanding export base must be implemented.

CO2emissions and militarization in G7 countries: panel cointegration and trivariate causality approaches

2017 ◽  
Vol 22 (6) ◽  
pp. 771-791 ◽  
Author(s):  
Melike Bildirici
Keyword(s):  
Economic Growth ◽  
Energy Consumption ◽  
Panel Cointegration ◽  
Energy Policies ◽  
G7 Countries ◽  
Causality Test ◽  
Per Capita Gdp ◽  
Distributed Lag ◽  
Short Run ◽  
Per Capita

AbstractThis paper aims to test the relation among militarization, CO2emissions, economic growth and energy consumption in G7 countries from 1985 to 2015 via panel methods. Long- and short-run coefficients and the causal relationship between the variables are important for G7 countries' energy policies and strategy. Cointegration among CO2emissions, militarization, energy consumption and economic growth was determined by using panel Johansen and panel autoregressive distributed lag (PARDL) methods. Further, the panel trivariate causality test was applied and unidirectional causalities from militarization to CO2emissions and from energy consumption to CO2emissions were found. The evidence of bidirectional causality between per capita GDP and militarization, between per capita GDP and energy consumption, and between energy consumption and militarization was determined. The paper recommends that environmental and energy policies must recognize the differences in the relation between militarization, energy consumption and economic growth in order to maintain sustainable economic growth in the G7 countries.

Foreign inflows and economic growth in Pakistan: some new insights

2020 ◽  
Vol 13 (3) ◽  
pp. 97-113
Author(s):  
Muhammad Tahir ◽  
Ahmad Ali Jan ◽  
Syed Quaid Ali Shah ◽  
Md Badrul Alam ◽  
Muhammad Asim Afridi ◽  
...  
Keyword(s):  
Economic Growth ◽  
Employment Level ◽  
Content Type ◽  
Significance Level ◽  
Distributed Lag ◽  
Long Run ◽  
Short Run ◽  
External Sources ◽  
The Impact

Purpose The purpose of this paper is to explore the contending role of important external inflows on the economic growth of Pakistan economy. The main purpose behind focusing on Pakistan is that it is receiving significant inflows from different international sources such as International Monetary Fund, World Bank and Asian Development Bank. Design/methodology/approach The study adopted the autoregressive distributed lag cointegration approach for the purpose of exploring the long-run cointegrating relationship among the variables. As Pakistan Government had been implementing some major liberalization policies during 1990s, data from 1976 to 2018 is used to estimate the specified models to reflect the impact of the surge of foreign inflows occurring from that time. In addition, error correction model is estimated for examining the short-run relationships. Findings The findings revealed the significant role played by different inflows in accelerating the economic growth. According to results, in the long run, all inflows, for example, Foreign direct investment (FDI), debt, official developdment assistance and remittances, have influenced significantly and positively the economic growth. The two control variables such as inflation and employment level included in the model have also played their expected role in the growth process. In the short run, some of the variables such as remittances, FDI and inflation rate have lost their significance level while for debt, aid and employment level, the signs of their coefficients become reversed. Practical implications Based on the findings, the study suggests the policymakers of Pakistan economy to liberalize the economy and attract more inflows from the external sources to accelerate economic growth. Originality/value To the best of the authors’ knowledge, this is the first comprehensive empirical study on the role of foreign inflows in the process of economic growth in the context of Pakistan economy.

scholarly journals Estimating the Nexus of Tourism on Sustainable Development Goals in Nigeria

2021 ◽  
Vol 20 ◽  
pp. 751-771
Author(s):  
Ngozi Helen Oguchi ◽  
Fen Luo
Keyword(s):  
Economic Growth ◽  
Sustainable Development ◽  
Sustainable Development Goals ◽  
Tourism Industry ◽  
Distributed Lag ◽  
Long Run ◽  
Time Series Dataset ◽  
Causality Tests ◽  
Short Run ◽  
Development Goals

Tourism industry has become one of the principal sources of economic growth and a viable platform of employment both in Africa and globally. Considering that economic growth and job creation are the focal points of sustainable development goals (SDGs), this study is focused on investigating the relationship they have with tourism in Nigeria. A gross domestic product (GDP) time series dataset is utilized to represent economic growth variable while, statistical data obtained from the WTTC is employed to denote Tourism revenues and arrivals in Nigeria. The study employed Autoregressive Distributed Lag (ARDL) bounds test of cointegration, the Error Correction model and Granger causality tests to empirically examine the impacts tourism has on economic growth and employment in the LACKET states of Nigeria for the period between 1999 to 2019. Generally, the investigations indicate that both in the short - and long - run, tourism is positively related to economic growth and employment rate in Nigeria. However, regarding short -run relationship, a lower positive link of tourism revenue is recorded.

scholarly journals ON THE (NONMONOTONIC) RELATION BETWEEN ECONOMIC GROWTH AND FINANCE

2018 ◽  
Vol 24 (1) ◽  
pp. 93-112 ◽  
Author(s):  
Alberto Bucci ◽  
Simone Marsiglio ◽  
Catherine Prettner
Keyword(s):  
Economic Growth ◽  
Financial Development ◽  
Capital Investment ◽  
Nonlinear Models ◽  
Physical Capital ◽  
Long Run ◽  
Financial Depth ◽  
Short Run ◽  
Per Capita

We analyze the simplest possible model of endogenous growth to account for the role of financial development. In our setting, financial development affects productivity and determines the amount of resources subtracted to capital investment. We show that under very general assumptions, the relation between economic growth and financial depth is nonmonotonic, and eventually bell-shaped. We empirically assess our results in a framework that allows to distinguish between long-run and short-run effects. We establish a cointegrating relation and derive the long-run elasticities of per capita gross domestic product (GDP) with respect to employment, the physical capital stock, and financial depth–relying on linear as well as nonlinear models for the finance-growth nexus. We employ the results of the first step estimation to specify an error–correction model and find that there is strong evidence for a nonlinear relationship between financial depth and per capita GDP, consistently with what was predicted by our theoretical model.

scholarly journals Does Environmental Stress Affect Economic Growth: Evidence from the Gulf Cooperation Council countries?

2021 ◽  
Author(s):  
Osama Daifalla D. Sweidan ◽  
Khadiga Elbargathi
Keyword(s):  
Economic Growth ◽  
Environmental Stress ◽  
Panel Cointegration ◽  
Positive Influence ◽  
Cointegration Analysis ◽  
Distributed Lag ◽  
Distributed Lag Model ◽  
Long Run ◽  
Short Run ◽  
Per Capita

Abstract This paper empirically investigates the influence of environmental stress on economic growth in the GCC countries during (1995-2016). We use a panel cointegration analysis and compute an autoregressive distributed lag model. Our paper is motivated by the high CO2 emissions per capita and environmental stress in these countries relative to other countries. We assume that the income per capita is a function of the natural resource’s rents and environmental stress. Our findings show that environmental stress has a positive and significant effect on economic growth, mainly in the long run. Further, the natural resources’ rents have a significant positive effect in the short run, while the long run impact is negative. Our paper’s policy implication states that economic policymakers should monitor and evaluate future environmental stress outcomes in these countries. There is no guarantee that the positive influence prevails. Therefore, they should diversify their economies and energy resources.Jel Classification: Q51, Q56.

Research Note: Tourism and Economic Growth in Latin American Countries – Further Empirical Evidence

2011 ◽  
Vol 17 (6) ◽  
pp. 1365-1373 ◽  
Author(s):  
Bichaka Fayissa ◽  
Christian Nsiah ◽  
Bedassa Tadesse
Keyword(s):  
Economic Growth ◽  
Latin American ◽  
Empirical Models ◽  
Tourism Industry ◽  
Neoclassical Growth Model ◽  
Short Run ◽  
Per Capita ◽  
The Impact ◽  
Latin American Countries ◽  
Neoclassical Growth

Using panel data that span from 1990 to 2005, the authors investigate the impact of tourism on the economic growth of 18 heterogeneous Latin American countries within the framework of the conventional neoclassical growth model. Results from the empirical models show that revenues from the tourism industry contribute positively to both the current level and the growth rate of the per capita GDP of the countries in the region, as do investments in physical and human capital. The findings imply that Latin American economies may enhance their economic growth in the short run by strengthening their tourism industries strategically, while not neglecting the traditional sources of economic growth.

Economic Growth: New Problems and New Risks

2006 ◽  
pp. 20-37 ◽  
Author(s):  
M. Ershov
Keyword(s):  
Economic Growth ◽  
Foreign Exchange ◽  
Driving Force ◽  
Structural Changes ◽  
Rate Of Growth

The economic growth, which is underway in Russia, raises new questions to be addressed. How to improve the quality of growth, increasing the role of new competitive sectors and transforming them into the driving force of growth? How can progressive structural changes be implemented without hampering the rate of growth in general? What are the main external and internal risks, which may undermine positive trends of development? The author looks upon financial, monetary and foreign exchange aspects of the problem and comes up with some suggestions on how to make growth more competitive and sustainable.

scholarly journals Investment Portfolio, Democratic Accountability, Poverty and Income Inequality Nexus in Pakistan: A Way to Social Sustainability

2021 ◽  
Vol 13 (11) ◽  
pp. 6411
Author(s):  
Muhammad Shahid Hassan ◽  
Haider Mahmood ◽  
Muhammad Ibrahim Saeed ◽  
Tarek Tawfik Yousef Alkhateeb ◽  
Noman Arshed ◽  
...  
Keyword(s):  
Income Inequality ◽  
Social Sustainability ◽  
Data Availability ◽  
Democratic Accountability ◽  
Investment Portfolio ◽  
Economic Activities ◽  
Distributed Lag ◽  
Autoregressive Distributed Lag ◽  
Short Run

Institutions help to streamline the economic activity-related procedures, where government intervention might be involved. Institutions also play a significant role in social sustainability. The findings using the Autoregressive Distributed Lag approach to cointegration for the period from 1984–2019 reveal that investment portfolio and democratic accountability reduce poverty in Pakistan both in the long and short run. Moreover, democratic accountability helps to reduce income inequality, but the investment portfolio’s role is not significant. The literacy rate helps to reduce income inequality, and inflation increases poverty and income inequality. The remittances increase income inequality, and urbanization increases poverty. To eradicate poverty and income inequality, the governments should be accountable for their actions to the general public while they remain in power. If they do not deliver as per their manifestoes, they will not be reelected in the next election. Moreover, there is a dire need to redefine the role of an investment portfolio to reduce the risk of investment. So, investments would increase economic activities and could reduce poverty and income inequality. This study contributes to the literature by inquiring about the role of the investment portfolio and democratic accountability in social sustainability by reducing poverty and income inequality. This study only considers Pakistan’s economy due to limitations of poverty data availability in other countries. The scope could further be broadened by accessing data for a wider Asia region to test the role of the investment portfolio and democratic accountability to reduce poverty and income inequality.

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