scholarly journals ENTREPRENEURSHIP AND ECONOMIC GROWTH NEXUS IN NIGERIA: MODERATING EFFECT OF INSTITUTIONAL QUALITY: ARDL COINTEGRATION APPROACH

2021 ◽  
pp. 5-19
Author(s):  
Yusuf Shamsuddeen Nadabo ◽  
Suleiman Maigari Salisu
Keyword(s):  
Economic Growth ◽  
Positive Impact ◽  
Interactive Effect ◽  
Institutional Quality ◽  
Political Stability ◽  
Entrepreneurial Activity ◽  
Distributed Lag ◽  
Moderator Model ◽  
The Impact

This paper explores the relationship between entrepreneurship and economic growth in Nigeria: the moderating role of institutional quality. To accomplish this, the study employs an Autoregressive distributed lag (ARDL) from (2002Q1–2019Q4) and uses a moderator model to examine the impact of entrepreneurship on economic growth via institutional quality. The resilts show that institutional quality in Nigeria has a positive impact on economic growth. The results also indicate that the interactive effect of institutional quality and entrepreneurship has positive effect on economic growth in Nigeria both in the short-run and long-run. The study illustrate that the productive entrepreneurship is a potent vehicle for promoting long term economic growth in Nigeria. In general, unless institutional quality is introduced to improve the influence of entrepreneurship on economic growth, entrepreneurial activity alone may not lead to desired growth. Furthermore, the study presents a perspective of the role of government in establishing an enabling environment that promotes entrepreneurial activity and, as a result, enhances economic growth in Nigeria. Based on this finding, the study recommends for the implimantation of measures and policies aims at encourageing productive entrepreneurial activities that contribute to economic growth. In addition Government and policymakers should improved the quality of institutions such as improving Government Effectiveness, Political Stability and Absence of Violence, Voice and Accountability, Regulatory Quality, Rule of Law and Control of Corruption. KEYWORDS: Economic growth, Entrepreneurship, Moderating, Institutional quality.

THE ROLE OF INSTITUTIONAL QUALITY IN THE RELATIONSHIP BETWEEN FDI AND ECONOMIC GROWTH IN VIETNAM: EMPIRICAL EVIDENCE FROM PROVINCIAL DATA

2019 ◽  
Vol 64 (03) ◽  
pp. 601-623 ◽  
Author(s):  
NGUYEN VAN BON
Keyword(s):  
Economic Growth ◽  
Positive Impact ◽  
Estimation Method ◽  
Institutional Quality ◽  
Economic Activities ◽  
Fdi Inflows ◽  
Important Message ◽  
The Impact ◽  
The Relationship

All investigations into the role of institutions in the relationship between foreign direct investment (FDI) and economic growth conclude the impact of interaction between FDI and institutional quality on economic growth is significantly positive. Contrary to the conclusion of these studies, this paper finds it is significantly negative for a panel data of 43 provinces in Vietnam over the period 2005–2012 via the estimation method of difference panel GMM Arellano–Bond. In addition, the estimated results also show: (1) FDI inflows significantly foster economic growth; (2) Good institutional quality has a significantly positive impact while bad institutional quality has a negative albeit insignificant effect on economic growth. From the policy perspective, these findings signal an important message to developing countries that governments should carefully adjust policies and institutions because aside from attracting more FDI inflows and promoting the economic activities, it can also be detrimental to economic growth.

Finance-institution-growth trilogy: time-series insights from South Africa

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Clement Olalekan Olaniyi ◽  
Adebayo Adedokun
Keyword(s):  
Economic Growth ◽  
South Africa ◽  
Positive Impact ◽  
Institutional Quality ◽  
Empirical Examination ◽  
Content Type ◽  
Distributed Lag ◽  
Long Run ◽  
Short Run ◽  
The Impact

PurposeThis study examines the moderating effect of institutional quality on the finance-growth nexus in South Africa from 1986 to 2015.Design/methodology/approachThis study adopts unit root tests, cointegration test and autoregressive distributed lag (ARDL) model.FindingsThe findings reveal that institutional quality constitutes a drain to the growth benefits of financial development (FD) in South Africa in the short-run while FD and institutional quality converge to enhance growth process of the country in the long-run. Also, the threshold of institutional quality beyond which institution stimulates strong positive impact of finance on growth is estimated to be 6.42 on a 10-point scale.Practical implicationsThis study, therefore, suggests that institutional quality matters in the way FD influences economic growth in South Africa. Hence, stakeholders are encouraged to trace and block lapses and loopholes in the institutional framework guiding financial system in South Africa so as to maximize growth benefits of FD.Originality/valueThis study contributes to the extant studies by introducing a country-specific analysis into the empirical examination of how institutional quality influences the impact of FD on economic growth. Also, this study deviates from other studies by determining the threshold of institutional quality beyond which FD stimulates strong positive effect on economic growth in South Africa

scholarly journals Implications of Political Stability and Financial innovations for Sectoral Economic Growth of Pakistan

2020 ◽  
Vol 9 (34) ◽  
pp. 34-43
Author(s):  
Safdar Ali ◽  
Khalil Ahmad ◽  
Muhammad Shahid
Keyword(s):  
Economic Growth ◽  
Positive Impact ◽  
Economic Status ◽  
Empirical Finding ◽  
Political Stability ◽  
Agricultural Industry ◽  
Financial Innovations ◽  
Distributed Lag ◽  
Long Run ◽  
The Impact

The economic status of a country plays an important role in the lives of the citizens of both developed and developing countries. With the rapid increase in population, every country is trying to find new ways to boost its growth rate so that it may elicit the maximum number of people from poverty and can compare other countries in the form of improvement. The main objective of the study is to empirically investigate the impact of political stability and financial innovations on economic growth. Furthermore, the study also analyzes the impact of subsectors (Agricultural, Industry, and Services) of the economy on growth. A time-series co-integration autoregressive distributed lag (ARDL) model is used to investigate the general to specific sector's growth. The key empirical finding shows that political stability and financial development has a positive and significant impact on economic growth as well as its sub-sectors in the long-run. Trade liberalization has a positive impact on economic growth but most surprising results have been witnessed in agriculture growth for Pakistan.

Institutional Quality and Trade Flow: Empirical Evidence from Malaysia and Other OIC Member Countries in Africa

2021 ◽  
pp. 097508782098717
Author(s):  
Hammed Agboola Yusuf ◽  
Luqman Olanrewaju Afolabi ◽  
Waliu Olawale Shittu ◽  
Kafilah Lola Gold ◽  
Murtala Muhammad
Keyword(s):  
Economic Growth ◽  
Bilateral Trade ◽  
Trade Flow ◽  
Estimation Method ◽  
Institutional Quality ◽  
Likelihood Estimation ◽  
Political Stability ◽  
Bilateral Trade Flow ◽  
World Governance Indicators ◽  
The Impact

This article examines the impact of institutional quality on bilateral trade flow between Malaysia and selected 25 African Organisation of Islamic Cooperation (OIC) member countries. Four institutional qualities were selected from World Governance Indicators with other trade predictors from the period from 1985 to 2016. Using gravity model of trade and Poisson pseudo-maximum likelihood estimation method (PPML) technique, the results confirm that government effectiveness, regulatory quality and political stability have an adverse effect on bilateral trade flow among the OIC countries in Africa. On the other hand, these institutional quality variables were considered as a strength for Malaysian economic growth. Therefore, better institutional quality reforms are needed among OIC member countries in Africa in order to accelerate trade, economic growth and development in their region.

scholarly journals Impact of unemployment and income on entrepreneurship in post-apartheid South Africa: 1994–2015

2018 ◽  
Vol 10 (1) ◽  
Author(s):  
Darma Mahadea ◽  
Irrshad Kaseeram
Keyword(s):  
Economic Growth ◽  
South Africa ◽  
Employment Growth ◽  
Positive Impact ◽  
Early Stage ◽  
National Development ◽  
Entrepreneurial Activity ◽  
Per Capita Gdp ◽  
Per Capita ◽  
The Impact

Background: South Africa has made significant progress since the dawn of democracy in 1994. It registered positive economic growth rates and its real gross domestic product (GDP) per capita increased from R42 849 in 1994 to over R56 000 in 2015. However, employment growth lagged behind GDP growth, resulting in rising unemployment. Aim and setting: Entrepreneurship brings together labour and capital in generating income, output and employment. According to South Africa’s National Development Plan, employment growth would come mainly from small-firm entrepreneurship and economic growth. Accordingly, this article investigates the impact unemployment and per capita income have on early stage total entrepreneurship activity (TEA) in South Africa, using data covering the 1994–2015 period. Methods: The methodology used is the dynamic least squares regression. The article tests the assertion that economic growth, proxied by real per capita GDP income, promotes entrepreneurship and that high unemployment forces necessity entrepreneurship. Results: The regression results indicate that per capita real GDP, which increases with economic growth, has a highly significant, positive impact on entrepreneurial activity, while unemployment has a weaker effect. A 1% rise in real per capita GDP results in a 0.16% rise in TEA entrepreneurship, and a 1% rise in unemployment is associated with a 0.25% rise in TEA. Conclusion: There seems to be a strong pull factor, from income growth to entrepreneurship and a reasonable push from unemployment to entrepreneurship, as individuals without employment are forced to self-employment as a necessity, survival mechanism. Overall, a long-run co-integrating relationship seems plausible between unemployment, income and entrepreneurship in South Africa.

scholarly journals Impact of Domestic Public Debt on Economic Growth - An Empirical Study in the Indian Context

2016 ◽  
Vol 6 (4) ◽  
pp. 101-116
Author(s):  
Srinivasa Rao Gangadharan ◽  
Lakshmi Padmakumari
Keyword(s):  
Economic Growth ◽  
Granger Causality ◽  
Positive Impact ◽  
Least Square ◽  
Distributed Lag ◽  
Long Run ◽  
Domestic Debt ◽  
Integration Test ◽  
Ordinary Least Square Regression ◽  
The Impact

This study is an empirical investigation to assess the impact of domestic debt on India’s Economic growth during the period 1980 – 2014. We use data on Domestic Debt, Net Fiscal Deficit, Exports, Savings, Real Gross Domestic Product, Population and Terms of Trade. This study adopts the ARDL Co-Integration and Granger Causality techniques to investigate the relation between the key variables. The study also employs various post estimation tests to validate the fitness and stability of the models based on Gauss Markov assumptions, after employing the ordinary least square regression on various models. We find that debt negatively impacts economic growth while savings has a positive impact. The Auto Regressive Distributed Lag (ARDL) technique used to test the robustness suggests existence of co-integration among the variables. However, none of the long run co-efficient is significant. The granger causality and co-integration test results support the traditional view that debt negatively impacts economic growth.

The mediation role of public governance in the relationship between entrepreneurship and economic growth

2019 ◽  
Vol 16 (3) ◽  
pp. 316-333
Author(s):  
Allam Mohammed Hamdan ◽  
Reem Khamis ◽  
Ammar Abdulla Al Hawaj ◽  
Elisabetta Barone
Keyword(s):  
Economic Growth ◽  
United Arab Emirates ◽  
Entrepreneurial Activity ◽  
Public Governance ◽  
Content Type ◽  
National Economic ◽  
Oil Revenues ◽  
The Impact ◽  
The Relationship

Purpose The purpose of this paper is to investigate the mediation role of public governance in the relationship between entrepreneurship and economic growth in the United Arab Emirates (UAE). Design/methodology/approach To achieve this aim, the study uses a 20-year time series analysis (1996–2015) and tests the effect of entrepreneurship on economic growth, through public governance, via a mediator model. Findings The study has determined that public governance buoys the positive effect that entrepreneurship activities exert on economic growth in the UAE. Based on this determination, the study posits a set of recommendations that focus on supporting entrepreneurship activities that play a significant role in economic growth. Originality/value The study adds to the literature on the impact of entrepreneurship on economies dependent on oil revenues vis-à-vis a public policy perspective. The study provides insights into the type of entrepreneurship that most efficaciously suits the Emirati social and cultural milieu in terms of fostering national economic growth. In addition, the study limns a vision of the role of public governance in creating an enabling environment that stimulates entrepreneurial activity and, in turn, increases economic growth in the Emirates.

The Impact of Entrepreneurial Education on Entrepreneurial Activity: With the Moderating Role of Future Time Perspective and Mediating Role of Opportunity Identification

2019 ◽  
Vol 16 (11) ◽  
pp. 4660-4667
Author(s):  
Chandej Charoenwiriyakul ◽  
Sriparinya Toopgajank ◽  
Sittichai Thammasane
Keyword(s):  
Time Perspective ◽  
Positive Impact ◽  
Future Time Perspective ◽  
Entrepreneurial Activity ◽  
Entrepreneurial Education ◽  
Opportunity Identification ◽  
Future Time ◽  
Mediating Role ◽  
The Impact

Purpose: This research is conducted to know the impact of entrepreneurial education on entrepreneurial activity in Thailand, this study also focuses on the moderating effect of future time perspective between entrepreneurial education and opportunity identification. This study is directed to keep opportunity identification as a mediating role between entrepreneurial education and entrepreneurial activity. Methodology: Method of quantitative study is used, questionnaire was selected as the research tool, questionnaires were distributed among private and public universities of Thailand and an online survey was also conducted in order to collect data and in order to collect opinions regarding the main idea of this research. Results: The results showed that entrepreneurial education has a very important and positive impact on entrepreneurial activity and opportunity identification effectively mediates that relationship between entrepreneurial education and opportunity identification. It can be seen that future time perspective is significantly moderating between opportunity identification and entrepreneurial education. Implications: The format and variables adopted in this research are a vital addition to the literature world as almost no research was done keeping these variables all at once whereas, practically this research is helpful for the entrepreneurs and higher education system.

scholarly journals Effects of foreign direct investment on economic growth in Ghana: the role of institutions

2021 ◽  
Vol 20 (1) ◽  
pp. 23-34
Author(s):  
Evans Kulu ◽  
Samuel Mensah ◽  
Prince Mike Sena
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
Secondary Data ◽  
Output Growth ◽  
Data Series ◽  
Development Indicators ◽  
Distributed Lag ◽  
The Impact

The role of institutions in both the inflow and the impact of foreign direct investment is of great im¬portance. The quality of institutions in a country can direct investment towards improving growth. This paper analyzes the individual and combined effect of foreign direct investment and institutions on economic growth in Ghana. The paper used the Auto Regressive Distributed Lag (ARDL) tech¬nique for secondary data obtained from 1995 to 2019. All data series, except for the quality institution index, were drawn from the World Bank Development Indicators. Institutional Quality Index data was obtained from the Heritage Foundation’s Economic Freedom Index website. The results of the ARDL model indicate that foreign direct investment and a quality institutional index together have a significantly positive effect on a country’s economic growth compared to their individual effects in both the short and long run. The study recommends that government policies should be aimed at attracting foreign direct investment while strengthening institutions and regulations to enhance output growth.

scholarly journals The Impact of Tourism on the Local Economy in Malaysia

2018 ◽  
Vol 13 (12) ◽  
pp. 151 ◽  
Author(s):  
Chin-Hong Puah ◽  
Meng-Chang Jong ◽  
Norazirah Ayob ◽  
Shafinar Ismail
Keyword(s):  
Economic Growth ◽  
Capital Investment ◽  
Positive Impact ◽  
Economic Transformation ◽  
Tourism Industry ◽  
Local Economy ◽  
Sustainable Growth ◽  
Distributed Lag ◽  
The Government ◽  
The Impact

The local and international communities play an important role in the sustainable growth of the Malaysian tourism industry. The principle of sustainable growth in the tourism industry was proposed by the World Tourism Organization (WTO) in 1988. As the tourism industry is one of the largest and fastest growing industries in Malaysia, the government has poured considerable effort into promoting this industry consistent with the objective of the Economic Transformation Program (ETP) to transform from a resource-based economy to a service-based economy. This study aimed to test the hypothesis of tourism-led growth from Malaysia’s perspective. The tourism revenue earned by the government can be used to invest in industry to further promote economic growth in Malaysia. Hence, tourist receipts and capital investment in the tourism industry are important factors that can affect the nation’s economic growth. Utilizing Malaysian data from 1995 to 2016, the study employed the Autoregressive Distributed Lag (ARDL) approach to examine whether the tourism-led growth is valid in this study. Empirical findings indicated that both variables have a significant positive impact on economic growth and the hypothesis of tourism-led growth is accepted in Malaysia.

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