scholarly journals The Effects of R&D and High Technology Exports on Economic Growth: A Comparative Cointegration Analysis for Turkey and South Korea

2016 ◽  
Author(s):  
Ayfer Ustabaş ◽  
Özgür Ömer Ersin
Keyword(s):  
Economic Growth ◽  
South Korea ◽  
Unit Root ◽  
High Technology ◽  
Unit Root Tests ◽  
Gdp Per Capita ◽  
High Tech ◽  
Cointegration Tests ◽  
Short Run ◽  
Per Capita

The importance of technology and research and development (R&D) on economic development through international trade has been discussed in many studies. However, the empirical studies focusing on the role of high technology exports has been limited. The study aims at filling this gap by evaluating the relationship between high technology exports and GDP per capita levels with structural unit root tests and cointegration methodologies for Turkey and South Korea for the 1989-2014 period. The following hypothesis is evaluated: by increasing high technology manufactured goods’ exports, countries could increase their GDP per capita which also requires increased R&D that translates itself as high technology manufactured exports. The empirical methodology is as follows: both GDP per capita and high-tech exports variables are tested with traditional ADF, PP unit root and KPSS stationarity tests. The series are further evaluated with Zivot-Andrews single break and Lee-Strazicich two break unit root tests. The structural break tests are necessary; it is well-known that structural breaks lead to biased results in the traditional unit root and additionally in the cointegration tests. Lastly, both variables are tested for cointegration with Engle-Granger and Johansen tests by incorporating the break dates as exogenous dummy variables. The estimated models are further checked for parameter instability with CUSUM type tests. The results obtained for Turkey and South Korea are slightly different: i. both variables are cointegrated for both countries; ii. For South Korea, the positive impact of high-tech exports on GDP cannot be rejected in the long and short run; ii. This conclusion cannot be obtained for Turkey, iii. the parameter estimates for Turkey hint a limited positive effect of high tech exports in the short-run only. The results suggest that, in the future, Turkey should increase the investments in human capital and R&D directed to high tech exports to which could accelerate the economic growth.

The Relationship Among Military Expenditure, High Technological Product Exports, and Economic Growth

2021 ◽  
pp. 624-645
Author(s):  
Sevgi Sezer
Keyword(s):  
Economic Growth ◽  
Panel Data Analysis ◽  
Military Expenditure ◽  
Gdp Per Capita ◽  
High Tech ◽  
Industrialized Countries ◽  
G7 Countries ◽  
Causality Relationship ◽  
Per Capita ◽  
The Relationship

In this chapter, the effects of military expenditure (MEXP) on high-tech exports (HTX) and GDP per capita (GDPPC) of G7 and new industrialized countries (NIC) are analyzed for period 1988-2015 by panel data analysis. The causality relationships between the series are examined by Dumitrescu and Hurlin test. In G7 countries, one-way causality relationship from HTX to MEXP and two-way causality relationship between MEXP and GDPPC have been identified. Also, in NIC countries, two-way causality relationship between HTX and MEXP and one-way causality relationship from GDPPC to MEXP have been determined. Cointegration relations are tested by Pedroni test and the series are found to be cointegrated. It is seen that in the G7 countries, 1% increase in MEXP during the period of 1988-2015 increased HTX by 0.71% and GDPPC by 0.98%. In NIC countries, the 1% increase in MEXP increased HTX by 1.7% and GDPPC by 0.96%. The effect of MEXP on HTX is found much higher in NIC countries.

scholarly journals The Causality Relationship between Technological Development Indicators and Economic Growth: The Case of Turkey

2017 ◽  
Author(s):  
Neşe Algan ◽  
Müge Manga ◽  
Muammer Tekeoğlu
Keyword(s):  
Economic Growth ◽  
Technological Development ◽  
Granger Causality Test ◽  
Gdp Per Capita ◽  
High Tech ◽  
Causality Test ◽  
Development Indicators ◽  
Causality Relationship ◽  
Patent Applications ◽  
Per Capita

The improvements in technological development indicators play a driving role in the process of economic growth and industrialization. Especially, technological developments are vital for developing countries. This study investigates the relationship between the share of R & D expenditure in GDP, the number of patent applications and GDP per capita utilizing Granger causality test for the period of 1996 - 2015. According to Granger Causality test analysis results, it is concluded that short-term one-way causality from high-tech product exports and R & D spending to GDP per capita, and one-way causality relationship from GDP per capita to patent application numbers. In addition, long-term R & D expenditures and patent applications have resulted in a positive GDP per capita, while high-tech exports, contrary to anticipation, negatively affected.

scholarly journals Exploring Economic Growth and Environment Nexus in Nine Southeastern European Countries

2018 ◽  
Vol 56 (2) ◽  
pp. 253-268
Author(s):  
Petar Mitić ◽  
Slobodan Cvetanović
Keyword(s):  
Economic Growth ◽  
Co2 Emissions ◽  
Renewable Energy Sources ◽  
Gdp Per Capita ◽  
Speed Of Adjustment ◽  
Long Run ◽  
Short Run ◽  
Policy Measures ◽  
Per Capita ◽  
Trading Scheme

Abstract This paper investigates the interdependence between environmental degradation (CO2 emissions) and economic growth (GDP per capita) in nine SEE countries over the period 1992 – 2016. The results of Granger causality testing indicate that in the short run there is a positive bidirectional causal relationship between CO2 emissions and GDP per capita, but in the long run, there is causality running just from GDP per capita to CO2 emissions, with the 2.0279% speed of adjustment. In pursuit of adequate policy measures, SEE countries need to work on inclusion of non-EU countries into European Union’s Emissions Trading Scheme, further developing carbon taxation policies and using renewable energy sources on a larger scale.

scholarly journals The Effects of Primary Budget Deficits on Economic Growth: Evidence from Kenya

2021 ◽  
pp. 36-52
Author(s):  
Patrick Mugendi Mugo ◽  
Wafula Masai ◽  
Kennedy Osoro
Keyword(s):  
Economic Growth ◽  
Budget Deficit ◽  
Golden Rule ◽  
Cointegration Analysis ◽  
Gdp Per Capita ◽  
Budget Deficits ◽  
Long Run ◽  
Fixed Capital Formation ◽  
Short Run ◽  
Per Capita

Aims: The paper attempts to examine the effects of primary budget deficits on economic growth. It reviews the nature and direction of causality between primary budget deficit and economic growth. In the recent years, these have been debated both in developed and developing countries. In contributing to this ongoing debate, the study analyzes the case for Kenya from 1980 to 2016. The evidence is intended to provide policy insights for macroeconomic stability and sustained  economic growth for shared prosperity in Kenya. Study Design: The study employs quantitative time-series research design by utilizing Stata econometrics software. Place and Duration of Study: Sample: Evidence from Kenya, from 1980 to 2016. Methodology: The study employs unit root tests, Johansen cointegration analysis, a dynamic vector error correction model and a multivariate Toda-Yamamoto Granger-causality representation. Results: The findings establish that the primary budget deficit, gross fixed capital formation, real interest rate, terms of trade, inflation growth and financial innovation have significant effects on GDP per capita growth in Kenya. Primary budget deficit has a strong and significant effect on GDP per capita growth both in short-run and long run. In the short-run, the results revealed that the primary budget deficit had a positive effect on economic growth which turned negative in the long-run. There was a unidirectional causality running from primary budget deficit to economic growth.  Conclusion: The study concludes that both in the short run and long run, primary budget deficit has strong and significant causal effects on economic growth in Kenya. The evidence underscores the need for the authorities to reduce high primary budget deficits, interest payments and domestic borrowings and strictly apply the golden rule of public finances to boost long term inclusive growth, in Kenya. 

The Relationship Among Military Expenditure, High Technological Product Exports, and Economic Growth

2018 ◽  
pp. 59-80
Author(s):  
Sevgi Sezer
Keyword(s):  
Economic Growth ◽  
Panel Data Analysis ◽  
Military Expenditure ◽  
Gdp Per Capita ◽  
High Tech ◽  
Industrialized Countries ◽  
G7 Countries ◽  
Causality Relationship ◽  
Per Capita ◽  
The Relationship

In this chapter, the effects of military expenditure (MEXP) on high-tech exports (HTX) and GDP per capita (GDPPC) of G7 and new industrialized countries (NIC) are analyzed for period 1988-2015 by panel data analysis. The causality relationships between the series are examined by Dumitrescu and Hurlin test. In G7 countries, one-way causality relationship from HTX to MEXP and two-way causality relationship between MEXP and GDPPC have been identified. Also, in NIC countries, two-way causality relationship between HTX and MEXP and one-way causality relationship from GDPPC to MEXP have been determined. Cointegration relations are tested by Pedroni test and the series are found to be cointegrated. It is seen that in the G7 countries, 1% increase in MEXP during the period of 1988-2015 increased HTX by 0.71% and GDPPC by 0.98%. In NIC countries, the 1% increase in MEXP increased HTX by 1.7% and GDPPC by 0.96%. The effect of MEXP on HTX is found much higher in NIC countries.

scholarly journals Personal remittances, banking sector development and economic growth in Israel: A trivariate causality test

2015 ◽  
Vol 13 (1) ◽  
pp. 1014-1027
Author(s):  
Kunofiwa Tsaurai
Keyword(s):  
Economic Growth ◽  
Banking Sector ◽  
Gdp Per Capita ◽  
Series Data ◽  
Long Run ◽  
Banking Sector Development ◽  
Integration Test ◽  
Short Run ◽  
Causality Relationship ◽  
Per Capita

The current study investigates the causal relationship between personal remittances and economic growth using Israel time series data from 1975 to 2011. In a bid to contain the omission-of-variable bias not addressed in many past studies on this topic, this study included banking sector development as a third variable in the relationship between personal remittances and economic growth to create a tri-variate causality framework. Personal remittances as a ratio of GDP, domestic credit to private sector by banks as a ratio of GDP and GDP per capita were used as proxies for personal remittances, banking sector development and economic growth respectively for the purposes of this study. It used the Johansen co-integration test to examine the existence of the long run relationship and vector error correction model (VECM) to determine the direction of causality between personal remittances, banking sector development and economic growth both in the long and short run. The findings reveal that: (1) there is a significant long run causality relationship running from GDP per capita and banking sector development towards personal remittances, (2) there is an insignificant long run causality relationship running from personal remittances and GDP per capita towards banking sector development, (3) there is no long run causality relationship running from personal remittances and banking sector development towards GDP per capita and there is no short run causality relationship between the three variables that were under study in Israel. The author therefore recommends the authorities of Israel to speed up the implementation of banking sector development and economic growth programmes in order to increase the quantity of personal remittances inflows

scholarly journals The nexus between stock market development and economic growth

2016 ◽  
Vol 14 (1) ◽  
pp. 269-277
Author(s):  
Kunofiwa Tsaurai
Keyword(s):  
Economic Growth ◽  
Stock Market ◽  
Gdp Per Capita ◽  
Market Development ◽  
Stock Market Development ◽  
Real Gdp ◽  
Real Gdp Per Capita ◽  
Short Run ◽  
Per Capita ◽  
The Relationship

The study investigated the relationship between stock market development and economic growth in Belgium using ARDL approach with annual time series data from 1988 to 2012. Real GDP per capita was used as a proxy for economic growth and stock market capitalization as a ratio of GDP as an approximate measure of stock market development. The relationship between stock market development and economic growth falls into four categories which are (1) stock market-led economic growth, (2) economic growth-led stock market development, (3) feedback effect and (4) neutrality hypothesis where the relationship between the two variables does not exist. Despite the existence of these four views on the relationship between stock market and economic growth, it appears from the literature review done by the author that majority of the empirical evidence support the stock market-led economic growth view. The fact that the topic on the directional causality between stock market and economic growth is still inconclusive is the major motivating factor why the author chose to investigate the relationship between the two variables in Belgium. The study observed that there exist an insignificant long run causality running from stock market development towards economic growth in Belgium. This relationship was not detected in the short run. Moreover, the reverse causality from real GDP per capita to stock market capitalization both in the long and short run was not detected in Belgium. These results are at variance with the majority of the empirical findings reviewed earlier on. It could possibly be that certain conditions that are necessary to enable stock market to significantly positively influence economic growth were not in place in Belgium. Therefore, the study urges the Belgium authorities to put in place the right environment, policies and programmes that enable the stock market to play its role of stimulating economic growth.

scholarly journals Explaining Growth in African Countries – What Matters?

2019 ◽  
Vol 69 (3) ◽  
pp. 467-484
Author(s):  
José Augusto Lopes Da Veiga ◽  
Alexandra Ferreira-Lopes ◽  
Tiago Neves Sequeira ◽  
Marcelo Serra Santos
Keyword(s):  
Economic Growth ◽  
Growth Rate ◽  
Public Debt ◽  
Gdp Per Capita ◽  
African Countries ◽  
Real Gdp ◽  
Real Gdp Per Capita ◽  
Short Run ◽  
Per Capita ◽  
Determinants Of Economic Growth

In this paper we analyse the role of the traditional determinants of economic growth in the African countries in the period between 1950 and 2012. Due to the specificity and the single nature of each one of these countries, methods that take into account observed and unobserved heterogeneity are used. Results highlight the relevance of the growth rate of the capital stock to growth in the short-run, which is significant in all regressions. The growth rate of the government to GDP ratio is also important in all but one of the regressions in which it appears, and its growth is harmful for the growth of GDP per capita in the short-run. The variables related to public debt do not present any relationship with economic growth. Human capital has a positive relationship with economic growth in regressions that do not include public debt. The growth rate of real GDP per capita also depends (negatively) on its past value, i.e., the lower the real GDP per capita the higher will be its growth rate.

scholarly journals An Empirical Analysis on the Relationship between Health Care Expenditures and Economic Growth in the European Union Countries

2018 ◽  
Vol 2 (1) ◽  
pp. 12
Author(s):  
Çiğdem Börke Tunalı ◽  
Naci Tolga Saruç
Keyword(s):  
Economic Growth ◽  
European Union ◽  
Health Expenditure ◽  
Gdp Per Capita ◽  
The European Union ◽  
Long Run ◽  
European Union Countries ◽  
Short Run ◽  
Per Capita ◽  
The Relationship

This paper empirically investigates the relationship between health expenditure and economic growth in the European Union countries over the period 1995-2014. By using the Dumitrescu-Hurlin Test (Dumitrescu and Hurlin, 2012) which is developed to test Granger causality in panel datasets (Lopez and Weber, 2017), it is found that there is a unidirectional relationship between these variables and gross domestic product (GDP) per capita Granger causes health expenditure per capita. After determining the direction of the relationship between health expenditure per capita and GDP per capita we estimate the short run and the long run effects of GDP per capita on health expenditure per capita by using Mean Group (MG) and Pooled Mean Group (PMG) estimators which are developed by Pesaran and Smith (1995) and Pesaran, Shin and Smith (1999) respectively. According to the estimation results, GDP per capita has a positive effect on health expenditure per capita both in the short run and the long run.

scholarly journals The Impact of Human Capital Development on Economic Growth in Ethiopia: Evidence from ARDL Approach to Co-Integration

2014 ◽  
Vol 1 (3) ◽  
pp. 127-136 ◽  
Author(s):  
Kidanemariam Gidey Gebrehiwot
Keyword(s):  
Economic Growth ◽  
Human Capital ◽  
Gdp Per Capita ◽  
School Enrolment ◽  
Real Gdp ◽  
Long Run ◽  
Real Gdp Per Capita ◽  
Short Run ◽  
Per Capita ◽  
The Government

The main objective of the study was to investigate the long run and short run impact of human capital on economic growth in Ethiopia (using real GDP per capita, as a proxy for economic growth) over the period 1974/75-2010/2011. The ARDL Approach to Co-integration and Error Correction Model are applied in order to investigate the long-run and short run impact of Human capital on Economic growth. The finding of the Bounds test shows that there is a stable long run relationship between real GDP per capita, education human capital, health human capital, labor force, gross capital formation, government expenditure and official development assistance. The estimated long run model revels that human capital in the form of health (proxied by the ratio of public expenditure on health to real GDP) is the main contributor to real GDP per capita rise followed by education human capital (proxied by secondary school enrolment). Such findings are consistent with the endogenous growth theories which argue that an improvement in human capital (skilled and healthy workers) improves productivity. In the short run, the coefficient of error correction term is -0.7366 suggesting about 73.66 percent annual adjustment towards long run equilibrium. This is another proof for the existence of a stable long run relationship among the variables. The estimated coefficients of the short-run model indicate that education is the main contributor to real GDP per capita change followed by gross capital formation (one period lagged value) and government expenditure (one period lagged value). But, unlike its long run significant impact, health has no significant short run impact on the economy. Even its one period lag has a significant negative impact on the economy. The above results have an important policy implication. The findings of this paper imply that economic performance can be improved significantly when the ratio of public expenditure on health services to GDP increases and when secondary school enrolment improves. Such improvements have a large impact on human productivity which leads to improved national output per capita. Hence policy makers and / or the government should strive to create institutional capacity that increase school enrolment and improved basic health service by strengthening the infrastructure of educational and health institutions that produce quality manpower. In addition to its effort, the government should continue its leadership role in creating  enabling environment that encourage better investment in human capital (education and health) by the private sector.  

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