The Relationship Between Public Expenditures, Total Factor Productivity and Economic Growth: A Panel Data Analysis

Developing Economies ◽

Panel Data Analysis ◽

Statistical Significance ◽

Data Availability ◽

Public Expenditures ◽

Annual Data ◽

Factor Productivity ◽

According to the economics literature, there are two main sources of economic growth. While the first of the resources is the accumulation of production factors, the other is the part of the output that cannot be explained by the amount of input used in production, in other words, the total factor productivity. The level of total factor productivity is measured according to how efficiently the inputs are used in the production process. In this study, the hypothesis that public spending affects real economic growth through total productivity is investigated. In the first stage, whether the changes in public expenditures affect the total factor productivity or not; if it does, to what extent and in what direction it has been tried to be revealed. In the second stage, the effect of total factor productivity on economic growth was examined and the statistical significance, direction and extent of the relationship between variables were investigated. Annual data were used in the study and the year range is 2000-2017. The sampling economies were selected according to data availability, and there are a total of 20 developed and developing economies. Research was conducted using multiple panel regression analysis. According to the findings, the relationship between public expenditures and total factor productivity is statistically significant. An increase in public expenditures reduces the total factor productivity. The relationship between total factor productivity and economic growth is statistically significant, and an increase in total factor productivity also increases economic growth. An increase in public expenditures affects economic growth negatively by reducing the total factor productivity.

Entrepreneurship and Economic Growth: An Investigation into the Relationship between Entrepreneurship and Total Factor Productivity Growth in the EU

SSRN Electronic Journal ◽

10.2139/ssrn.1883546 ◽

2011 ◽

Author(s):

Andrzej P. Dabkowski

Keyword(s):

Economic Growth ◽

Productivity Growth ◽

Total Factor Productivity Growth ◽

Factor Productivity ◽

The Relationship ◽

The Eu

Handbook of Research on Strategic Developments and Regulatory Practice in Global Finance - Advances in Finance, Accounting, and Economics ◽

Financial Development and Economic Growth

10.4018/978-1-4666-7288-8.ch015 ◽

2015 ◽

pp. 233-245

Author(s):

Filiz Eryılmaz ◽

Hasan Bakır ◽

Mehmet Mercan

Keyword(s):

Economic Growth ◽

Data Analysis ◽

New Zealand ◽

Financial Development ◽

Positive Relationship ◽

Panel Data Analysis ◽

Annual Data ◽

The Subject ◽

The relationship between financial development and economic growth has been the subject of considerable debate in development and growth literature. Therefore this chapter provides evidence on the role of financial development in accounting for economic growth in 23 OECD countries (Italy, Japan, Luxemburg, Holland, New Zealand, Norway, Portugal, Spain, Sweden, Switzerland, England, USA, Australia, Austria, Belgium, Canada, Denmark, Finland, Turkey, France, Germany, Greece, Iceland) via panel data analysis using the annual data for the period 1980-2012. The authors find a positive relationship between financial development and economic growth for all countries. Also this result means that financial development leads economic growth in these countries. So the results may help policymakers formulate effective financial sector policies as a tool to promote economic growth.

New Evidence on the Relationship Between Economic Freedom and Growth: A Panel Cointegration Analysis for The Case of OECD

Global Economy Journal ◽

10.1515/1524-5861.1796 ◽

2012 ◽

Vol 12 (3) ◽

pp. 1850263 ◽

Cited By ~ 3

Author(s):

Ekrem Erdem ◽

Can Tansel Tugcu

Keyword(s):

Economic Growth ◽

Panel Data ◽

Economic Freedom ◽

Global Financial Crisis ◽

Oecd Countries ◽

Cointegration Analysis ◽

Factor Productivity ◽

The Impact ◽

The aim of this paper is to find a new answer to an old question “Is economic freedom good or not for economies?” which was refreshed after the Global Financial Crisis of 2008. For this purpose, the relationship between economic freedom and economic growth, and the relationship between economic freedom and total factor productivity in OECD countries were investigated by using panel data for the period of 1995-2009. Study employed the recently developed cointegration test by Westerlund (2007) and the estimation technique by Bai and Kao (2006) which account for cross-sectional dependence that is an important problem in the panel data studies. Although no significant relationship found between economic freedom and total factor productivity, cointegration analysis revealed that economic freedom matters for economic growth in OECD countries in the long-run, and estimation results showed that direction of the impact is negative.

A Time Series Analysis of International ICT Spillover

Selected Readings on Global Information Technology ◽

10.4018/978-1-60566-116-2.ch022 ◽

2011 ◽

pp. 373-386

Author(s):

Juan Juan Zhang ◽

Sang-Yong Tom Lee

Keyword(s):

Economic Growth ◽

Time Series ◽

Time Series Analysis ◽

Communication Technology ◽

Factor Productivity ◽

Series Analysis ◽

Information And Communication ◽

This article studies the role of international spillover of information and communication technology (ICT) in economic growth. We examine the performance of ten countries from 1982 to 1999. By empirically analyzing the relationship between total factor productivity (TFP) and domestic and foreign ICT investment with time series analysis tools, we find limited evidence that there exist international ICT spillovers for a group of countries. Further, we discuss the possible ICT policies to improve productivity and balance out a win-win situation for both ICT spillover sending and receiving countries.

The Relationship between Labor Productivity and Economic Growth in OECD Countries

International Journal of Economics and Finance ◽

10.5539/ijef.v9n5p71 ◽

2017 ◽

Vol 9 (5) ◽

pp. 71 ◽

Cited By ~ 2

Author(s):

Suna Korkmaz ◽

Oya Korkmaz

Keyword(s):

Economic Growth ◽

Developing Countries ◽

Labor Productivity ◽

Panel Data Analysis ◽

Developed Countries ◽

Oecd Countries ◽

Factor Productivity ◽

The Developed Countries ◽

Partial Factor Productivity ◽

In the course of globalization, the countries entered into an intense competition between each other. In order to achieve the competitive advantage, countries pay significant importance to the technological advancements. By improving the productivity, the technological innovations and developments allow the countries to make production at lower costs. The increase in factor productivities would enable higher levels of output in the economy. Since the factor productivity influences many other factors and the developed countries meet these criteria better than developing countries do, the factor productivities are higher in developed countries, when compared to those in developing countries. For this reason, in this study, the relationship between labor productivity, which is a partial factor productivity, and economic growth in seven OECD countries for the period between 2008 and 2014 by utilizing the panel data analysis method. According to the test results, we find a unidirectional causality relationship from economic growth to labor productivity.

A Time Series Analysis of International ICT Spillover

Information Communication Technologies ◽

10.4018/978-1-59904-949-6.ch232 ◽

2008 ◽

pp. 3285-3298

Author(s):

Juan Juan Zhang ◽

Sang-Yong Tom Lee

Keyword(s):

Economic Growth ◽

Time Series ◽

Time Series Analysis ◽

Communication Technology ◽

Factor Productivity ◽

Series Analysis ◽

Information And Communication ◽

An Empirical Study on Dynamic Evolution of Industrial Structure and Green Economic Growth—Based on Data from China’s Underdeveloped Areas

Sustainability ◽

10.3390/su13158154 ◽

2021 ◽

Vol 13 (15) ◽

pp. 8154

Author(s):

Gefu Liang ◽

Dajia Yu ◽

Lifei Ke

Keyword(s):

Economic Growth ◽

Industrial Development ◽

Industrial Structure ◽

Developed Countries ◽

Economic Transformation ◽

Factor Productivity ◽

Underdeveloped Areas ◽

The Relationship ◽

Industrial Structure Upgrading

From the experiences of developed countries or areas, advanced industrial structure is an effective way to promote economic transformation and high-quality growth. This paper uses the economic development data of seven underdeveloped provinces in China in 10 years to study the relationship between industrial structure upgrading, industrial structure rationalization and green economic growth. The result shows: (1) The relationship between the upgrading of industrial structure and green total factor productivity (GTFP) is a non-linear relationship that is difficult to fit. (2) There are two turning points in the relationship curve between industrial structure upgrading and green total factor productivity (these can be called “rationalization points”). (3) The “rationalization points” are affected by the rationalization of the industrial structure. (4) The “rationalization point” divides the relationship curve into three intervals. Within the threshold range [0.661, 0.673] of the rationalization of the industrial structure, the upgrading of the industrial structure promotes the increase of green total factor productivity, while outside the range, the upgrading of the industrial structure inhibits the increase of green total factor productivity. Therefore, industrial development in underdeveloped areas should first implement rationalization of industrial structure. After the rational adjustment of the industrial structure, we will then develop a high-level industrial structure to improve the green TFP.

Handbook of Research on Information Management and the Global Landscape - Advances in Global Information Management ◽

A Time Series Analysis of International ICT Spillover

10.4018/978-1-60566-138-4.ch008 ◽

2010 ◽

pp. 132-145 ◽

Cited By ~ 1

Author(s):

Juan Juan Zhang ◽

Sang-Yong Tom Lee

Keyword(s):

Economic Growth ◽

Time Series ◽

Time Series Analysis ◽

Communication Technology ◽

Factor Productivity ◽

Series Analysis ◽

Information And Communication ◽

The Sources of Economic Growth in Nigeria: A Growth Accounting Approach

European Journal of Economics and Business Studies ◽

10.26417/ejes.v5i1.p89-99 ◽

2019 ◽

Vol 5 (1) ◽

pp. 89

Author(s):

Emeka Nkoro ◽

Aham Kelvin Uko

Keyword(s):

Economic Growth ◽

Human Capital ◽

Technological Development ◽

Correlation Coefficients ◽

Physical Capital ◽

Growth Accounting ◽

Factor Productivity ◽

Foreign Investments ◽

The study investigated the sources of growth in Nigeria for the period 1960 to 2017 using the growth accounting framework of the standard neoclassical production function.Specifically, the study focused on evaluating the contribution of capital, labour and total factor productivity to economic growth in Nigeria. Additionally, in order to establish the relationship between capital, labour and total factor productivity, and economic growth, correlation coefficients between the variables were estimated. The results correlation analysis showed that the growths of capital, labour and total factor productivity were positively correlated with economic growth. Furthermore, the results from the growth accounting framework revealed that capital was found to be the major driver of economic growth in Nigeria during the entire period, 1961-2017. In the case of the sub-periods, capital was the major driver of economic growth in Nigeria during the first sub-period, 1961-1980. However, during the period, 1981-2000, labour was the major driver of economic growth, followed by capital while TFP growth contribution deteriorated as it was negative. Also, TFP was the major driver of economic growth during the period 2001-2017. Based on the foregoing, the study therefore recommends that, policies that encourage physical capital, human capital and technological development through domestic and foreign investments should be adopted, nurtured, sustained and intensified, noting that capital, human capital and technological development are key to economic growth and development.

DOES TOTAL FACTOR PRODUCTIVITY CONVERGE AMONG ASEAN COUNTRIES?

Buletin Ekonomi Moneter dan Perbankan ◽

10.21098/bemp.v0i0.962 ◽

2019 ◽

pp. 477-494

Author(s):

Badri Narayan Rath

Keyword(s):

Economic Growth ◽

Lagrange Multiplier ◽

Unit Root ◽

Unit Root Tests ◽

Annual Data ◽

Alternative Measure ◽

Factor Productivity ◽

Productivity Convergence ◽

Asean Countries

This paper examines the productivity convergence of the five original Association ofSoutheast Asian Nations (ASEAN) countries, namely Indonesia, Malaysia, Philippines,Singapore, and Thailand (ASEAN-5), using annual data spanning the period 1968to 2014. Results from two-break Lagrange multiplier and residual augmented leastsquares Lagrange multiplier unit root tests reveal strong evidence of productivityconvergence in case of ASEAN-5. Further, the results based on Phillips–Sul panelclub convergence also reveal productivity convergence. To check the robustness ofour finding, we use an alternative measure of total factor productivity and still findevidence of convergence. We infer that such productivity improvements may helpASEAN countries to achieve a higher pace of economic growth.