To Investigation the Relationship between Monetary, Fiscal Policy and Economic Growth in Iran: Autoregressive Distributed Lag Approach to Cointegration

Abstract This paper is conducted to examine the relationship between the use of renewable energy and FDI in Indonesia. The data used in this study is secondary data that has been published by the World Bank and accessed in www.Data.worldbank.org. periode 2004-2019. The data analysis method used is the autoregressive distributed lag (ARDL) method. The results of the study found that the use of renewable energy in the short and long term has a positive effect on Indonesia’s economic growth. Meanwhile, the same thing is also shown from the FDI variable in the short term and long term which has a significant positive effect on economic growth and has a positive effect on economic growth. Finally, with this finding, it is concluded that both the short and long term the Indonesian government needs to make a breakthrough to explore renewable energy sources for economic growth.

Download Full-text

The Nexus Between Taxation, Government Expenditure and Economic Growth in South Africa. A fresh evidence from combined cointegration test

Studies of Applied Economics ◽

10.25115/eea.v39i3.3835 ◽

2021 ◽

Vol 39 (3) ◽

Author(s):

Delani Moyo ◽

Ahmed Samour ◽

Turgut Tursoy

Keyword(s):

Economic Growth ◽

South Africa ◽

Government Expenditure ◽

Distributed Lag ◽

Distributed Lag Model ◽

Autoregressive Distributed Lag ◽

Long Run ◽

Integration Test ◽

Lag Model ◽

The Relationship

The relationship between taxation, government expenditure and economic growth. is a widely debated issue in the literature. The aim of this research is to present a fresh evidence from the nexus of taxation, government expenditure and economic growth in for the period 1991-2018 in South Africa, using recently developed combined co-integration test. Autoregressive Distributed Lag model(ARDL) is utilized to examine coefficients between the variables in the short and long-run The newly advanced Bayer-Hacks (BH) combined co-integration approach is employed so as to verify the ARDL bounds result. The empirical results from ARDL model revealed that there is a positive and significant relationship between government expenditure and economic growth in both short and long run. In addition, the study shows that tax revenue has a significant positive relationship with the economic growth. Therefore, levels of taxation and government expenditure are favorable to the growth of economy in South Africa. The research proposed that decision makers in South Africa should pay more attention on Taxation and government expenditure policies and the gains from economic growth such as channel much of its expenditure towards the manufacturing and agricultural sectors, which have great potentials of increasing the supply of the products. Which in turn leads to reduce prices and increase in the rates of employment. This would, also make the country’s exports prices competitive.

Download Full-text

Output Volatility and Government Size in Nigeria

Folia Oeconomica Stetinensia ◽

10.2478/foli-2020-0017 ◽

2020 ◽

Vol 20 (1) ◽

pp. 286-301

Author(s):

Philip I. Nwosa ◽

Chris Ehinomen ◽

Ephraim Ugwu

Keyword(s):

Fiscal Policy ◽

Government Size ◽

Output Volatility ◽

Large Share ◽

Role Of Government ◽

Automatic Stabilization ◽

Distributed Lag ◽

Autoregressive Distributed Lag ◽

The Relationship

AbstractResearch background: Output volatility has potentially adverse consequences on the economy and the stabilizing role of fiscal policy is linked to the share of government size in an economy. Hence, given the relative large share of government in developing countries, government size is expected to play an important role in stabilizing output volatility.Purpose: This study examines the relationship between output volatility and government size in Nigeria. The study seeks to establish if government size mitigates output volatility in Nigeria.Research methodology: The study employs the Autoregressive Distributed Lag (ARDL) technique after conducting stationarity and co-integration tests.Results: The results of the ARDL estimate showed that government size lessens output volatility but the magnitude was insignificant. Further, the study found that volatility in aggregate government spending; international oil price and public debt were significant determinants of output volatility in Nigeria.Novelty: This showed that the automatic stabilization role of government size on output volatility could not be established. The automatic stabilization role of fiscal policy can be improved by increasing social security transfers (pension payment), payments of unemployment benefits and increasing civil servants minimum wage.

Download Full-text

Does Defence Spending and its Composition Affect Economic Growth in India?

Margin The Journal of Applied Economic Research ◽

10.1177/0973801019886486 ◽

2020 ◽

Vol 14 (1) ◽

pp. 62-85

Author(s):

Ranjan Kumar Mohanty ◽

Sidheswar Panda ◽

Biswabhusan Bhuyan

Keyword(s):

Economic Growth ◽

Granger Causality ◽

Jel Classification ◽

Substantial Influence ◽

Causality Test ◽

Distributed Lag ◽

Autoregressive Distributed Lag ◽

Defence Spending ◽

The Relationship ◽

Defence Expenditure

The article investigates the relationship between economic growth and defence expenditure in India from 1970–1971 to 2015–2016. By using the Autoregressive Distributed Lag and Toda-Yamamoto Granger Causality approach, the empirical results find that defence expenditure has a positive and significant impact on economic growth in India. The study also finds that capital defence expenditure has a positive and significant effect on economic growth, while revenue defence expenditure does not have any substantial influence on it. The causality test confirms a bidirectional causality between defence expenditure and economic growth, while it finds a unidirectional causality that runs from capital defence expenditure to economic growth. The study suggests that defence spending, especially capital defence spending, should be encouraged to enhance economic growth in the Indian economy. JEL Classification: H56, O40, C32

Download Full-text

The Relationship between Money Supply, Price Level and Economic Growth In Pakistan: Keynesian versus Monetarist View

Review of Economic and Business Studies ◽

10.1515/rebs-2018-0073 ◽

2018 ◽

Vol 11 (2) ◽

pp. 49-64

Author(s):

Abdul Mansoor ◽

Quratulain Shoukat ◽

Shagufta Bibi ◽

Khushbakht Iqbal ◽

Romana Saeed ◽

...

Keyword(s):

Economic Growth ◽

Money Supply ◽

Price Level ◽

Economic Policies ◽

Distributed Lag ◽

Autoregressive Distributed Lag ◽

Long Run ◽

Short Run ◽

The Relationship ◽

Supply Price

AbstractThe objective of the study is to examine the relationship between money supply, price level and economic growth in the context of Pakistan by using Autoregressive Distributed Lag (ARDL) model, covered a period of 1980 to 2016. The results confirm the long-run relationship between the variables while using broad money supply as a response variable. However, in the price and income modeling, the variables do not support the cointegration relationship between the variables. The causality results confirmed the unidirectional relationship running from income to money supply, which implies that income do causes money supply in the short run, whereas money supply leads to inflation to support Monetarist view of inflation in a country. The results conclude that economic growth is imperative to stabilize money supply and price level through sound economic policies in a country.

Download Full-text

Trade Liberalisation and Economic Growth in Macedonia

South East European Journal of Economics and Business ◽

10.1515/jeb-2016-0010 ◽

2016 ◽

Vol 11 (2) ◽

pp. 48-60 ◽

Cited By ~ 2

Author(s):

Viktorija Mano-Bakalinov

Keyword(s):

Economic Growth ◽

Trade Reforms ◽

Productivity Function ◽

Distributed Lag ◽

Autoregressive Distributed Lag ◽

Long Run ◽

Short Run ◽

Market Liberalisation ◽

The Relationship ◽

Positive Effect

Abstract The objective of this paper is to explore the effects of trade on Macedonian economic growth. The autoregressive distributed lag (ARDL) model is applied on yearly data over the period of 1993-2014. Empirical investigation reveals that an increase of population and openness demonstrate a positive and significant effect on Macedonian economic growth. Given other diverging findings, this suggests that the relationship between trade reforms and growth through the productivity function may vary across transition economies. Nevertheless, the findings of this paper indicate that policies focusing on market liberalisation and opening the economy to trade have a positive effect on Macedonian economic growth, both in the short run and the long run.

Download Full-text

The Relationship between Carbon Dioxide Emissions, Economic Growth and Agricultural Production in Pakistan: An Autoregressive Distributed Lag Analysis

Energies ◽

10.3390/en12244644 ◽

2019 ◽

Vol 12 (24) ◽

pp. 4644 ◽

Cited By ~ 3

Author(s):

Sajjad Ali ◽

Li Gucheng ◽

Liu Ying ◽

Muhammad Ishaq ◽

Tariq Shah

Keyword(s):

Economic Growth ◽

Carbon Dioxide ◽

Agricultural Production ◽

Carbon Dioxide Emissions ◽

Distributed Lag ◽

Autoregressive Distributed Lag ◽

Short Run ◽

Production Economic ◽

Sorghum Production ◽

The Relationship

This study aims to explore the casual relationship between agricultural production, economic growth and carbon dioxide emissions in Pakistan. An autoregressive distributed lag (ARDL) model is applied to examine the relationship between agricultural production, economic growth and carbon dioxide emissions using time series data from 1960 to 2014. The Augmented Dickey–Fuller (ADF), Phillips–Perron (PP) and Kwiatkowski–Phillips–Schmidt–Shin (KPSS) tests are used to check the stationarity of variables. The results show both short-run and long-run relationships between agricultural production, gross domestic product (GDP) and carbon dioxide emissions in Pakistan. From the short-run estimates, it is found that a 1% increase in barley and sorghum production will decrease carbon dioxide emissions by 3% and 4%, respectively. The pairwise Granger causality test shows unidirectional causality of cotton, milled rice, and sorghum production with carbon dioxide emissions. Due to the aforementioned cause, it is essential to manage the effects of carbon dioxide emissions on agricultural production. Appropriate steps are needed to develop agricultural adaptation policies, improve irrigation facilities and introduce high-yielding and disease-resistant varieties of crops to ensure food security in the country.

Download Full-text

The Relationship between Democracy and Economic Growth in Tunisia: An Application of Autoregressive Distributed Lag Model

International Journal of Social Science Research ◽

10.5296/ijssr.v4i1.8870 ◽

2016 ◽

Vol 4 (1) ◽

pp. 137

Author(s):

Lamia Arfaoui ◽

Azza Ziadi ◽

Sonia Manai

Keyword(s):

Economic Growth ◽

Negative Impact ◽

Empirical Studies ◽

Distributed Lag ◽

Distributed Lag Model ◽

Autoregressive Distributed Lag ◽

Long Run ◽

Equilibrium Relationship ◽

Lag Model ◽

The Relationship

This paper aims to identify the nature of the relationship between democracy and economic growth. We will answer the question: Does democracy improve economic growth? We study the case of Tunisia during the period from 1980 until 2014; this country has experienced a democratic transition after the revolution of 14 th January 2011. Our study is divided into two parts. The first part is a literature review of overview on the causality between democracy and economic growth. The second part as an application uses the Autoregressive Distributed Lag Model (ARDL). The choice of the technical SARL aimed the study of the existence of a long-run equilibrium relationship between two variables in level, a procedure co-integration has been proposed by Pesaran et al (2001). The results of different empirical studies were inconclusive. Some generated a negative impact of democracy on growth while others showed the opposite. The empirical results of our work have shown that in a nascent democracy such is the case of Tunisia; democracy has no effect on economic growth in the short term. It is to add an observation rate of GDP during the period post -revolution generated a sawtooth trend which demonstrates the unstable economic situation in the country.

Download Full-text

The relationship between trade, FDI and economic growth in Tunisia: An application of the autoregressive distributed lag model

Economic Systems ◽

10.1016/j.ecosys.2013.09.002 ◽

2014 ◽

Vol 38 (2) ◽

pp. 269-287 ◽

Cited By ~ 93

Author(s):

Mounir Belloumi

Keyword(s):

Economic Growth ◽

Distributed Lag ◽

Distributed Lag Model ◽

Autoregressive Distributed Lag ◽

Lag Model ◽

The Relationship

Download Full-text

Fiscal Policy and Sustainability of Public Debt: The Nigerian Experience

10.21203/rs.3.rs-617833/v1 ◽

2021 ◽

Author(s):

ANTHONY IMOISI

Keyword(s):

Fiscal Policy ◽

Public Debt ◽

Inflation Rate ◽

Allocative Efficiency ◽

Distributed Lag ◽

Autoregressive Distributed Lag ◽

Long Run ◽

Short Run ◽

Sustainability Of Public Debt ◽

The Relationship

Abstract This paper examines the relationship between fiscal policy and public debt sustainability in Nigeria within a multivariate framework from 1970–2019. The autoregressive distributed lag (ARDL) bounds test is employed to determine the long run relationship among the variables. The results of the ARDL test reveal that there is a long run relationship between the variables used in this study. Specifically, the result shows that budget deficit has a positive and significant impact on public debt both in the short run and long, while interest rate, real gross domestic product and inflation rate were statistically insignificant irrespective of the period and thus had no impact on public debt. Thus, it was recommended that the budgeting procedure at the federal and state levels in Nigeria need to reassessed to make sure that allocative efficiency is achieved in the budgeting system.

Download Full-text