scholarly journals Implication of Human Capital Development on Economic Growth by Using Cointegration and Error Correction Modelling in Pakistan

2021 ◽  
pp. 73-79
Author(s):  
Nayab Minhaj
Keyword(s):  
Economic Growth ◽  
Human Capital ◽  
Error Correction ◽  
Human Capital Development ◽  
Vector Error Correction ◽  
Vector Error ◽  
Short And Long Term ◽  
The Government ◽  
Capital Development

The study examined human capital development and Pakistan economic growth in the quest to evaluate various policy grounds upon which capital development exist among nations and its nexus and effect it will have on the domestic economy, this paper cross-examined the objective purpose of capital development as a measure of economy development the vector error correction approach was adopted as an estimation technique to reveal the short and long term disequilibrium in the study. Findings from the study show that there is a direct influence between the subject matter of human capital and economic growth in Pakistan by these findings, the study recommends that the government of Pakistan should continue the level of spending for the two sectors of health and education which are the underlying sectors for attaining capital development and purposeful growth and development in the Pakistan economy.

scholarly journals Strengthening Indonesia's Economic Growth with Islamic and non-Islamic Macroeconomic Variable

2020 ◽  
Vol 11 (1) ◽  
pp. 107-128
Author(s):  
Eba Ismi Alifah ◽  
Anton Bawono
Keyword(s):  
Economic Growth ◽  
Error Correction ◽  
Foreign Debt ◽  
Error Correction Model ◽  
Correction Model ◽  
Islamic Bank ◽  
Short And Long Term ◽  
The Government ◽  
Autoregressive Conditional Heteroscedasticity

Abstract: This research was conducted to determine the effect of taxes, Sukuk, grants, inflation, foreign debt, total financing, and the network of Islamic bank offices on Indonesia's economic growth. Research data for each variable is monthly from 2009-2018. Data analysis variables use Error Correction Model (ECM) Test and Autoregressive Conditional Heteroscedasticity (ARCH) Test with Eviews ver.10. The results showed that in the short and long term, variables taxes, Sukuk, inflation, foreign debt, total financing, and office networks of Islamic banks) affected the Indonesian economic growth. At the same time, grants have no significant effect on economic growth. For variable predictions in the next year (2019), only economic growth, grants, inflation, foreign debt, and network of Islamic bank offices can be predicted. Meanwhile, taxes, Sukuk, and total financing cannot be identified in 2019 because the variables are not significant in the ARCH analysis, so it cannot be diagnosed about future values. This result implies that the government and the community must continue to work together to manage state revenues used to fund productive projects to stimulate economic growth.Abstrak: Penelitian ini dilakukan untuk mengetahui pengaruh pajak, sukuk negara, hibah, inflasi, utang luar negeri, jumlah pembiayaan dan jaringan kantor bank syariah terhadap pertumbuhan ekonomi Indonesia. Data penelitian setiap variabel berupa bulanan dari tahun 2009-2018. Uji variabel penelitian menggunakan Uji Error Correction Model (ECM) dan Uji ARCH menggunakan Eviews ver.10. Hasil penelitian menunjukkan bahwa dalam jangka pendek maupun jangka panjang, variabel pajak, sukuk negara, inflasi, utang luar negeri, jumlah pembiayaan dan jaringan kantor bank syariah berpengaruh signifikan terhadap pertumbuhan ekonomi Indonesia. Sedangkan variabel hibah tidak berpengaruh secara signifikan terhadap pertumbuhan ekonomi. Untuk prediksi variabel di tahun berikutnya (tahun 2019), hanya variabel pertumbuhan ekonomi, hibah, inflasi, utang luar negeri dan jumlah jaringan kantor bank syariah yang dapat diprediksi, sedangkan pajak, sukuk negara, dan jumlah pembiayaan tidak dapat diketahui nilai perkembangannya di tahun 2019 karena variabel tersebut tidak signifikan pada analisis ARCH. Sehingga tidak dapat di diagnosa dalam bentuk ARCH untuk dilakukan forecast data agar diketahui tentang nilai di masa yang akan datang. Implikasi dari temuan ini adalah diperlukan upaya yang berkesinambungan dari pemerintah dan masyarakat dalam mengelola penerimaan negara yang dimanfaatkan untuk mendanai proyek yang produktif sehingga dapat mempercepat pertumbuhan ekonomi. 

scholarly journals Test FOR Dynamic Relationship between Financial Development and Economic Growth in Malaysia: A Vector Error Correction Modeling Approach

2007 ◽  
Vol 9 (1) ◽  
pp. 61 ◽  
Author(s):  
Rosilawati Amiruddin ◽  
Abu Hassan Shaari Mohd Nor ◽  
Ismadi Ismail
Keyword(s):  
Economic Growth ◽  
Error Correction ◽  
Financial Development ◽  
Impulse Response Function ◽  
Vector Autoregressive ◽  
Vector Error Correction ◽  
Dynamic Relationship ◽  
Vector Error ◽  
Error Correction Modeling

This paper purports to study the effectiveness of financial development to Malaysian economic growth utilizing quarterly data. In view of the priority given to dynamic relationship in conducting this study, Vector Autoregressive (VAR) method which encompasses Johansen-Juselius’ Multivariate cointegration, Vector Error Correction Model (VECM), Impulse Response Function (IRF), and Variance Decomposition (VDC) are used as empirical evidence. The result reveals a short-term and long-term dynamic relationship between financial development and economic growth. The importance of financial sector in influencing the economic activity is proven as a clear policy implication.

scholarly journals Human Capital Development, Economic Rejuvenation and Stable Long-Term Growth: The Case of Nigeria

2014 ◽  
Vol 27 ◽  
pp. 202-214
Author(s):  
Martins Iyoboyi
Keyword(s):  
Economic Growth ◽  
Human Capital ◽  
Development Economic ◽  
Bounds Testing ◽  
Human Capital Development ◽  
Long Run ◽  
Stable Growth ◽  
The Stability ◽  
Capital Development

The paper investigates the relative impact of human capital development on economic rejuvenation and growth in Nigeria form 1981 to 2010, using the bounds testing approach to cointegration. The study utilized a combined proxy of education and health to capture the influence of human capital on growing and consequently rejuvenating an economy. Fixed capital and human capital were found to be positively associated with economic growth in both the short and long run, while Granger-causing economic growth in the period of study, implying the imperatives of using them to rejuvenate an economy. The stability of the coefficients of the estimated model is confirmed by the CUSUM and CUSUMSQ tests. The paper showed that for Nigeria’s economic rejuvenation and long-term stable growth, emphasis should be placed on deliberately developing the country’s vast human resources.

scholarly journals Balance-of-payments-constrained economic growth in Brazil

2003 ◽  
Vol 23 (1) ◽  
pp. 63-86 ◽  
Author(s):  
FREDERICO GONZAGA JAYME JR
Keyword(s):  
Economic Growth ◽  
Error Correction ◽  
Balance Of Payments ◽  
External Factors ◽  
Dynamic Responses ◽  
Vector Error Correction ◽  
Vector Error ◽  
Constraint Model

ABSTRACT This paper applies the Thirlwall’s balance-of-payments constraint model to Brazilian economic growth in the period 1955-98, using cointegration technique. According to Thirlwall (1979) and MacCombie and Thirlwall (1994) differences in long-term economic growth among countries can be explained by a demand induced theory of economic growth. The model is tested on the Brazilian economy after industrial take- off in 1955 until 1998 using the cointegration technique and a vector error correction (VEC) representation to find the dynamic responses of exports to GDP. The results show that there is a positive cointegration between growth in exports and long-term economic growth in Brazil, which support the fact external factors constraint Brazilian economic growth.

scholarly journals DOES SUKUK, DOMESTIC INVESTMENT, FOREIGN INVESTMENT, AND INFLATION CONTRIBUTE TO ECONOMIC GROWTH IN INDONESIA?

2020 ◽  
Vol 7 (12) ◽  
pp. 2375
Author(s):  
Laela Setianingsih ◽  
Emy Widyastuti
Keyword(s):  
Economic Growth ◽  
Foreign Investment ◽  
Positive Contribution ◽  
Domestic Investment ◽  
Short Term ◽  
Correction Model ◽  
Vector Error Correction ◽  
Vector Error ◽  
Short And Long Term

ABSTRAKIndikator yang menentukan keberhasilan pembangunan ekonomi adalah pertumbuhan ekonomi. Kemajuan dan kesejahteraan suatu negara dapat dilihat melalui pertumbuhan ekonominya. Pertumbuhan ekonomi Indonesia berfluktuasi setiap tahun dan dipengaruhi oleh banyak faktor. Penelitian ini bertujuan untuk mengetahui kontribusi sukuk jangka pendek dan jangka panjang, penanaman modal dalam negeri, penanaman modal asing, dan inflasi terhadap pertumbuhan ekonomi di Indonesia dari tahun 2011 hingga 2019. Metode yang digunakan dalam penelitian ini adalah Vector Error Correction Model (VECM). Data yang digunakan dalam penelitian ini adalah data sekunder time series dengan periode penelitian triwulanan dari tahun 2011 hingga 2019. Hasil pengujian menunjukkan bahwa variabel sukuk memiliki kontribusi negatif yang tidak signifikan terhadap pertumbuhan ekonomi dalam jangka pendek dan dalam jangka Panjang, sukuk berpengaruh positif signifikan terhadap pertumbuhan ekonomi. Variabel investasi dalam negeri dalam jangka pendek dan jangka panjang memberikan kontribusi positif terhadap pertumbuhan ekonomi. Variabel investasi dalam negeri jangka pendek dan jangka panjang memberikan kontribusi positif yang tidak signifikan terhadap pertumbuhan ekonomi. Dan variabel inflasi memiliki kontribusi yang negatif dan tidak signifikan terhadap pertumbuhan ekonomi dalam jangka pendek dan jangka panjang.Kata Kunci: Sukuk, Penanaman Modal Dalam Negeri, Penanaman Modal Asing, Inflasi, Pertumbuhan Ekonomi. ABSTRACTThe indicator for determining the success of economic development is economic growth. The progress and welfare of a country can be seen through its economic growth. Indonesia’s economic growth fluctuates every year and is influenced by many factors. This study aims to determine the short-term and long-term contributions of Sukuk, domestic investment, foreign investment, and inflation to economic growth in Indonesia from 2011 to 2019. This method used in this research is the Vector Error Correction Model (VECM). The data used in this study are secondary time series data with a quarterly research period from 2011 to 2019. The test results show that the sukuk variable has an insignificant negative contribution to economic growth in the short term and the long term sukuk has a significant positive contribution to economic growth. Domestic investment variables in the short and long term contribute positively to economic growth. The short-term and long-term domestic investment variables have an insignificant positive contribution to economic growth. And the inflation variable has a negative and insignificant contribution to economic growth in the short and long term. Keywords: Sukuk, Domestic Investment, Foreign Investment, Inflation, Economic Growth.

scholarly journals SECURITY EXPENDITURE ON ECONOMIC GROWTH IN NIGERIA

2020 ◽  
Vol 8 (3) ◽  
pp. 553-561
Author(s):  
Asen Ayange ◽  
Udo Emmanuel Samuel Abner ◽  
Ishaku Prince ◽  
Victor Ndubuaku
Keyword(s):  
Economic Growth ◽  
Time Series ◽  
Human Capital ◽  
Time Series Data ◽  
Negative Relationship ◽  
Series Data ◽  
Human Capital Development ◽  
Long Run ◽  
The Government ◽  
Capital Development

Purpose of study: This study examines security expenditure as an economically contributive or a non-contributive expenditure on human capital development and economic growth in Nigeria. Methodology: Adopting the ARDL bounds test and Error Correction Model (ECM) on quarterly time-series data from January 2010-December 2018. Result: The findings and results indicate that security expenditure is economically a contributive expenditure. In the long-run a positive and significant impact on economic growth and human capital development, in the shot-run a negative relationship. The ECM model conveyed the speed of convergence from disequilibrium in the short-run back to long-run equilibrium by 86% quarterly. Implication/Application: The finding and results have critical implications for the government and policymakers, protection of life, properties, economic, and business assets positively stimulate economic growth. A unit increase in government expenditure on human capital development decreases insecurity and increase economic growth. Novelty/Originality of this study: Previous studies conducted globally and in Nigeria reported diverse results on the co-integrating relationship between security expenditure and economic growth, using diverse variables and annualized time series data predominantly. This study differs from the previous studies to adopt quarterly time-series data, the ARDL, and the ECM models as the major techniques of analysis along with a battery of pre-test and diagnostic tests.  

Measuring Dynamic Sales Impacts of LBA Using Wireless Communication Technology

2013 ◽  
Vol 662 ◽  
pp. 896-901
Author(s):  
Zong Jin Liu ◽  
Yang Yang ◽  
Zheng Fang ◽  
Yan Yan Xu
Keyword(s):  
Wireless Communication ◽  
Error Correction ◽  
Communication Technology ◽  
Dynamic Error ◽  
Rapid Development ◽  
Vector Autoregressive ◽  
Vector Error Correction ◽  
Vector Error ◽  
Equilibrium Relationship

Because of rapid development of wireless communication technology, there is an increasing adoption of mobile advertising, such as location based advertising (LBA). To what extent can LBA improve advertising effectiveness is an important topic in the field of wireless communication technology research. Most researches quantify long term impacts of advertisings by VAR (Vector Autoregressive) model. However, compared to VAR model, VECM (Vector Error Correction Model) is a better method in that it allows one to estimate both a long-term equilibrium relationship and a short-term dynamic error correction process. In this study, we employ VECM to explore LBA’s (Location Based Advertising) and PUA’s (Pop-up Advertising) sales impact in both short and long terms. The developed VECM reveals that LBA’s sales impact is about more than2 times as big as PUA’s in short dynamic term and nearly 6 times bigger than PUA’s in long equilibrium term. These findings add to advertising and VECM literatures. These results can give managers more confident to apply wireless communication technology to advertising.

Innovation, ICT penetration, trade and economic growth in developing and developed countries: a VECM approach

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Parul Singh ◽  
Areej Aftab Siddiqui
Keyword(s):  
Economic Growth ◽  
Error Correction ◽  
Developing Nations ◽  
Vector Error Correction Model ◽  
Correction Model ◽  
Content Type ◽  
Vector Error Correction ◽  
Vector Error ◽  
Short Run ◽  
Developed Nations

Purpose The development in information communication and technology (ICT) has led to many changes such as reorganization of economics, globalization and trade. With more innovation processes being organized and adopted across technologies, trade, etc., these are getting more closely related and needs fresh research perspective. This study aims to empirically investigate the interrelationship between ICT penetration, innovation, trade and economic growth in 20 developed and developing nations from 1995 to 2018. Design/methodology/approach The present paper examines both long-run and short-run relationships between the four variables, namely, innovation, ICT penetration, trade and economic growth, by applying panel estimation techniques of regression and vector error correction model. ICT penetration and innovation indices are constructed using principle component analysis technique. Findings The findings of the study highlight that for developed nations, growth, trade and innovation are significantly interlinked with no significant role of ICT penetration While for developing nations, significant relationship is present between growth and trade, ICT penetration and innovation. With respect to trade, in case of developed nations, significant relationship is present with ICT penetration. While for developing nations there is no significant result for trade promotion. On further employing the vector error correction model, the presence of short run causality between growth, trade and innovation in case of developed nations is established but no such causality between variables for developing nations is seen. Originality/value The present paper adds to the existing strand of literature examining interlinkage between innovation and growth by introducing new variables of ICT penetration and innovation.

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