scholarly journals The Relationship between Public Expenditures and Economic Growth in Transition Economies

2020 ◽  
Author(s):  
Mustafa Batuhan Tufaner
Keyword(s):  
Economic Growth ◽  
Transition Economies ◽  
Transition Period ◽  
Unit Root Test ◽  
Public Expenditures ◽  
Cointegration Tests ◽  
Causality Tests ◽  
Using Data ◽  
The Relationship

The effect of public expenditures on economic growth gained importance, especially after the First World War. In this study, the effect of public expenditures on economic growth was analyzed using data from the 1996-2017 period for 12 Transition Economies (Azerbaijan, Belarus, Armenia, Georgia, Kazakhstan, Kyrgyzstan, Moldova, Russia, Tajikistan, Turkmenistan, Ukraine, and Uzbekistan) in the transition period. In this context, the relationship between public expenditures and economic growth is investigated by applying unit root test, short and long term cointegration tests and causality tests. According to the results of the analysis, there is a long-term negative cointegration relationship between public expenditures and economic growth. However, there is a two-way causal relationship between public expenditures and economic growth.

scholarly journals The Relationship between Corruption, Innovation and Economic Growth: Empirical Evidence from OECD Countries

2021 ◽  
Author(s):  
Fatma Ünlü
Keyword(s):  
Economic Growth ◽  
Growth Process ◽  
Panel Data Analysis ◽  
Panel Cointegration ◽  
Long Run ◽  
Cointegration Tests ◽  
Corruption Index ◽  
Innovation Capacity ◽  
Using Data ◽  
The Relationship

The phenomenon of corruption which has significant effects on the economic growth process and innovation capacity of countries is one of the frequently discussed topics especially in the economics literature in recent years. From this point, the purpose of this study is to contribute to determining the relationship between corruption, innovation, and economic growth. To achieve this purpose, panel data analysis is carried out using data from a total of 37 OECD members for the period 2007-2019. In this context, firstly unit root tests are performed, and then panel cointegration tests are employed to determine the long-term relationship between the variables. Long-run coefficients are estimated by using FMOLS and DOLS methods. The findings obtained from the analysis show that there is a cointegration relationship between corruption, innovation, and economic growth. Accordingly, corruption and innovation have a positive and significant impact on economic growth. In addition, the rise in the corruption index has a positive and significant effect on innovation. In other words, the increase in the corruption index (decrease in the perception of corruption) contributes positively to both innovation and economic growth process in the related countries.

The Effect of Export Diversification on Economic Growth

2021 ◽  
pp. 381-393
Author(s):  
Mehmet Hilmi Özkaya ◽  
Tuba Yücel
Keyword(s):  
Economic Growth ◽  
Product Variety ◽  
Product Diversification ◽  
Causality Test ◽  
Panel Causality ◽  
Country Group ◽  
Brics Countries ◽  
Using Data ◽  
The Relationship

There are many studies on the growth of emerging economies under the leadership of foreign trade in the literature. The majority of the mentioned studies reveal that exports increase growth. In addition to expressing the increase in exports in numbers in recent years, it is also seen that researches about its effect on growth are also prominent. In this context, Dumitruscu-Hurlin (2012) panel causality test was applied using data covering the period of 1990-2018 to determine the relationship between Turkey and BRICS countries' product diversification in exports and economic growth. Findings obtained shows that product variety in exports in the relevant country group is effective on long-term economic growth.

scholarly journals Contribution of Insurance in Economic Growth of Nepal

2018 ◽  
Vol 4 (1) ◽  
pp. 99-110
Author(s):  
Srijana Pant ◽  
Fatta Bahadur KC
Keyword(s):  
Economic Growth ◽  
Empirical Evidence ◽  
Life Insurance ◽  
Insurance Premium ◽  
Positive Contribution ◽  
Insurance Sector ◽  
Using Data ◽  
Managing Risk ◽  
The Relationship

Insurance as a risk transfer mechanism may contribute to economic growth of a country by fostering long term investment through capital that is collected from accumulated savings from individuals. The main objective of this paper is to examine the contribution of insurance in economic growth of Nepal using determinants of insurance like total insurance premium, Life insurance premium, Non-life insurance premium, employment and investment using data from 2004 to 2015 based on theoretical and empirical evidence. Fortunately, in past few years, lots of research has been done to map the specific contributions made by insurance sector in economic growth of the country applying theoretical and empirical evidence. The evidence suggests that insurance may contribute to economic growth by creating investment climate and managing risk in more efficient way. Theoretically, the studies show insurance has a positive contribution to different levels of development and further suggests to examine the relationship between insurance and economic growth using appropriate model.

Electricity consumption and economic growth in ASEAN

2017 ◽  
Vol 5 (2) ◽  
pp. 16
Author(s):  
Ahmad Ghazali Ismail ◽  
Arlinah Abd Rashid ◽  
Azlina Hanif
Keyword(s):  
Economic Growth ◽  
Energy Use ◽  
Electricity Consumption ◽  
Panel Estimation ◽  
Real Gdp ◽  
Long Run ◽  
Bidirectional Relationship ◽  
Short Run ◽  
Using Data ◽  
The Relationship

The relationship and causality direction between electricity consumption and economic growth is an important issue in the fields of energy economics and policies towards energy use. Extensive literatures has discussed the issue, but the array of findings provides anything but consensus on either the existence of relations or direction of causality between the variables. This study extends research in this area by studying the long-run and causal relations between economic growth, electricity consumption, labour and capital based on the neo-classical one sector aggregate production technology mode using data of electricity consumption and real GDP for ASEAN from the year 1983 to 2012. The analysis is conducted using advanced panel estimation approaches and found no causality in the short run while in the long-run, the results indicate that there are bidirectional relationship among variables. This study provides supplementary evidences of relationship between electricity consumption and economic growth in ASEAN.

The Relationship between Human Development and Economic Growth

2018 ◽  
Author(s):  
Frances Stewart ◽  
Gustav Ranis ◽  
Emma Samman
Keyword(s):  
Economic Growth ◽  
Human Development ◽  
Human Development Index ◽  
Econometric Analysis ◽  
Complementary Relationship ◽  
Development Index ◽  
The Relationship ◽  
Intervening Variables

This chapter explores the interactions between economic growth and human development, as measured by the Human Development Index, theoretically and empirically. Drawing on many studies it explores the links in two chains, from economic growth to human development, and from human development to growth. Econometric analysis establishes strong links between economic growth and human development, and intervening variables influencing the strength of the chains. Because of the complementary relationship, putting emphasis on economic growth alone is not a long-term viable strategy, as growth is likely to be impeded by failure on human development. The chapter classifies country performance in four ways: virtuous cycles where both growth and human development are successful; vicious cycles where both are weak; and lopsided ones where the economy is strong but human development is weak, or conversely ones where human development is strong but the economy is weak.

An Empirical Analysis of the Relationship between Economic Growth and Energy Utilization in China

2013 ◽  
Vol 734-737 ◽  
pp. 1666-1670
Author(s):  
Fei Hu Yang ◽  
Peng Zhang ◽  
Xiao Wei Wang
Keyword(s):  
Economic Growth ◽  
Empirical Analysis ◽  
Energy Utilization ◽  
Correction Model ◽  
Vector Autoregressive ◽  
Integration Test ◽  
Recycling Economy ◽  
The Relationship ◽  
The Empirical Analysis

Based on the co-integration test, error correction model and vector autoregressive model, the empirical analysis results show a long-term co-integration relationship between economic growth and energy utilization in China, energy consumption increased by 1%, GDP will increase by 1.342%. In order to raise the efficiency of energy utilization during China's economic development, suggestions like saving energy conservation, reducing emission and recycling economy have been proposed.

ISSUES OF THE RELATIONSHIP BETWEEN THE STATE BUDGET AND ECONOMIC GROWTH IN UZBEKISTAN

2021 ◽  
Vol 4 (7) ◽  
pp. 4-19
Author(s):  
Akmal Baltayevich Allakuliev ◽  
Keyword(s):  
Economic Growth ◽  
The State ◽  
Rate Of Return ◽  
State Budget ◽  
Macroeconomic Shocks ◽  
Dynamic Correlations ◽  
Short And Long Term ◽  
The Impact ◽  
The Relationship

The article examines the interaction of the country's GDP with the state budget in the short and long term, the impact of the macro-fiscal mechanism on the country's economic growth on the example of Uzbekistan.The aim of the study is to identify dynamic correlations between the country's state budget expenditures and the economic growth of the macro-fiscal mechanism in the short and long term, as well as to analyze the approximation or rate of return of GDP and the state budget to equilibrium during various macroeconomic shocks. and hesitation.The scientific novelties of the research are:

scholarly journals FDI and Economic Growth in EU13 Countries: Cointegration and Causality Tests

2020 ◽  
Vol 12 (3) ◽  
pp. 47-63
Author(s):  
Vlatka Bilas ◽  
Keyword(s):  
Economic Growth ◽  
Growth Rate ◽  
European Union ◽  
Annual Data ◽  
Foreign Direct Investments ◽  
Causality Test ◽  
Panel Ardl ◽  
Long Run ◽  
Causality Tests ◽  
The Relationship

Foreign direct investments are seen as a prerequisite for gaining and maintaining competitiveness. The research objective of this study is to examine the relationship between foreign direct investment (FDI) and economic growth in “new” European Union member countries using various unit root, cointegration, as well as causality tests. The paper employs annual data for FDI and gross domestic product (GDP) from 2002 to 2018 for the 13 most recent members of European Union (EU13): Bulgaria, Croatia, Cyprus, the Czech Republic, Estonia, Hungary, Latvia, Lithuania, Malta, Poland, Romania, Slovakia and Slovenia. An estimated panel ARDL (PMG) model found evidence that there is a long-run equilibrium between the LogGDP, LogFDI and LogFDIP series, with the rate of adjustment back to equilibrium between 3.27% and 20.67%. In the case of the LogFDI series, long-run coefficients are highly statistically significant in all four models, varying between 0.0828 and 0.3019. These coefficients indicate that a 1% increase in LogFDI increases LogGDP between 0.0828% and 0.3019%. Results of a Dumitrescu-Hurlin panel causality test indicated that a relationship between the GDP growth rate and FDI growth rate is only indirect. Finally, only weak evidence was shown that FDI had a statistically significant impact on GDP in the EU13 countries over the period 2002-2018. This report of findings contributes to the literature concerning FDI and economic growth, namely regarding the current understanding of the relationship between these two factors.

scholarly journals A time series analysis of determinants of FDI in Afghanistan: Which one matters the most, security or economic growth?

2018 ◽  
Vol 6 (2) ◽  
pp. 19
Author(s):  
Abdul Fareed Delawari
Keyword(s):  
Economic Growth ◽  
Time Series ◽  
Foreign Direct Investment ◽  
Time Series Analysis ◽  
Direct Investment ◽  
Economic Factors ◽  
Market Economic ◽  
The Government ◽  
The Relationship

Afghanistan has been practicing market economic system since 2002. Since then, the government has been initiating different policies and announced various incentives to attract foreign direct investment (FDI) to the country. However, the outcome has not been satisfactory due to several political and economic factors. This paper explores the relationship between security, economic growth and FDI in Afghanistan, using ARDL model. The paper covers a period from 2002 to 2016. The empirical results of this study show that there is a negative long-term relationship between security and FDI. Hence,  the author concludes that, to attract FDI to the country, insuring security should be the top priority of the government of Afghanistan.

scholarly journals The Relationship between Tax Revenue and Economic Growth in Nepal: A Co-integration Approach

2018 ◽  
Vol 11 (1) ◽  
pp. 28-36
Author(s):  
Gautam Maharjan
Keyword(s):  
Economic Growth ◽  
Error Correction ◽  
Unit Root ◽  
Unit Root Test ◽  
Error Correction Model ◽  
Series Data ◽  
Tax Revenue ◽  
Correction Model ◽  
The Impact ◽  
The Relationship

The main objective of this paper is to examine the relationship between tax revenue and economic growth in Nepal. The 43 years' annual time series data from 1974/75 to 2016/17 of GDP, tax revenue and nontax revenue have been used to test the causal relationship of the variables. A unit root test, Engle-Granger’s co-integration and Error Correction Model have been applied for the data analysis. The variables have been found stationary after first differencing I(1) when Augmented Dickey-Fuller unit root test is employed. From Engel-Granger test, it has been found that the variables are co-integrated. The short-term coefficients are not significant, however error correction term (ECT) is significant and contains a negative sign in the error correction model (ECM). It validates the ECM model. The ECT has shown that the annual speed of adjustment from disequilibrium to equilibrium is 34.3 percent. So far as the relationship is concerned, there is a long run relationship between tax revenue and economic growth in Nepal controlling the non-tax revenue. The impact of tax revenue on economic growth could be a good impetus for the policy maker and planner to increase the collection of revenue for the country.

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