scholarly journals REVISITING THE ROLE OF EXTERNAL DEBT IN ECONOMIC GROWTH OF DEVELOPING COUNTRIES

2012 ◽  
Vol 13 (5) ◽  
pp. 968-993 ◽  
Author(s):  
Siti Nurazira Mohd Daud ◽  
Jan M. Podivinsky
Keyword(s):  
Economic Growth ◽  
Developing Countries ◽  
External Debt ◽  
Spillover Effect ◽  
Dynamic Panel Data ◽  
Dynamic Panel ◽  
Debt Overhang ◽  
Positive Spillover ◽  
Panel Data Econometrics

This paper proposes a study on the contribution of external debt to the expansion of economic growth for 31 developing countries. Over a period of 36 years, by using dynamic panel data econometrics estimation GMM-system, the results reveal that the accumulation of external debt is associated with a slowdown in the economies of the developing countries. In addition, this paper finds evidence that debt service ratio does not crowd out the investment rate in developing countries. In other words, even though external debt is negatively associated with economic growth, countries are found to be safe from being in the debt overhang hypothesis. Furthermore, there is evidence to support the existence of spatial dependence in the growth model, suggesting the existence of a positive spillover effect of growth among the neighbouring countries.

scholarly journals EXTERNAL DEBT, INSTITUTIONAL QUALITY AND ECONOMIC GROWTH

2020 ◽  
Vol 23 (2) ◽  
pp. 221-238
Author(s):  
Siti Nurazira Mohd Daud
Keyword(s):  
Economic Growth ◽  
Panel Data Analysis ◽  
External Debt ◽  
Institutional Quality ◽  
Dynamic Panel Data ◽  
Dynamic Panel ◽  
Debt Overhang ◽  
Negative Effect ◽  
Dynamic Panel Data Analysis

This paper addresses the gap in the literature by investigating the role of the institutional quality in the nexus of external debt and economic growth. By employing a dynamic panel data analysis, we found that the institutional quality plays some role in complementing the effect of external debt on a country’s economic growth. We also found that the negative effect of external debt and a country’s economic growth monotonically increases with the level of institutional indicator, which implies the possibility of debt overhang may still happen in economies endowed with good institutions, but for higher values of debt.

scholarly journals Education and Economic Growth in Developing Countries: Empirical Evidence from GMM Estimators for Dynamic Panel Data

2021 ◽  
Vol 34 (1) ◽  
pp. 14-29
Author(s):  
Wafa Sebki
Keyword(s):  
Economic Growth ◽  
Developing Countries ◽  
Panel Data ◽  
Tertiary Education ◽  
Dynamic Panel Data ◽  
Dynamic Panel ◽  
Negative Effect ◽  
The Difference ◽  
Difference Gmm ◽  
Positive Effect

Abstract The paper aims at studying the effect of education measured by enrolment ratios in secondary and higher education on economic growth measured by the rate of GDP growth in a sample of 40 developing countries during the period from 2002 to 2016 using the dynamic panel data estimators. The results of estimating the model of this study using the difference GMM estimator or what is known as the Arellano and Bond estimator showed that the proportions of those enrolled in tertiary education had a significant positive effect on economic growth, while the proportions of those enrolled in secondary education had a significant negative effect.

scholarly journals An econometric study of the role of the political stability on the relationship between democracy and economic growth

2020 ◽  
Vol 67 (2) ◽  
pp. 187-206
Author(s):  
Nedra Baklouti ◽  
Younes Boujelbene
Keyword(s):  
Economic Growth ◽  
Data Model ◽  
Generalized Method Of Moments ◽  
Political Stability ◽  
Dynamic Panel Data ◽  
The Political ◽  
Dynamic Panel ◽  
Mena Countries ◽  
The Relationship

This article examines the nexus between democracy and economic growth while taking into account the role of political stability, using dynamic panel data model estimated by means of the Generalized Method of Moments (GMM) over the period 1998 to 2011 for 17 Middle East and North Africa (MENA) countries. Our empirical results showed that there is a bidirectional causal relationship between democracy and economic growth. Moreover, it was found that the effect of democracy on economic growth depends on the political stability. The results also indicated that there is important complementarity between political stability and democracy. In fact, political stability is a key determinant variable of economic growth. Eventually, democracy and political stability, taken together, have a positive and statistically significant effect on economic growth. This finding suggests that, if accompanied by a stable political system, democracy can contribute to the economic growth of countries. Thus, the MENA governments should use policies to promote political stability in the region.

scholarly journals Malnutrition and Economic growth, Dynamic panel data analysis of developing countries

2021 ◽  
Vol 26 ◽  
pp. 455-465
Author(s):  
Sawssen Nafti
Keyword(s):  
Economic Growth ◽  
Growth Rate ◽  
Developing Countries ◽  
Food Security ◽  
Panel Data ◽  
National Level ◽  
Dynamic Panel Data ◽  
Sub Saharan Africa ◽  
Dynamic Panel ◽  
Under Nutrition

This paper concentrates on the empirical analysis of the pace of change in the food security situation in developing countries. We used dynamic panel data modeling by the GMM technique of Blundel and Bond (1998) during the period which range from 1990-2018 in order to estimate the relationship between the growth rate of GDP per capita and the growth rate of under nutrition prevalence in 26 developing countries belonging to the three different regions, namely Latin America, Sub-Saharan Africa and Asia. Food security was used at a national level as measured by the prevalence of under nutrition and the magnitude of the food deficit. The results of the estimates clearly show a negative relationship between economic growth rate and under nutrition prevalence; however, the economic growth of developing countries seems to be a key factor in reducing poverty and the proportion of the undernourished population.  

scholarly journals Economic growth in Africa: The role of corporate governance and stock market developments

2007 ◽  
Vol 4 (2) ◽  
pp. 226-232
Author(s):  
Anthony Kyereboah-Coleman
Keyword(s):  
Economic Growth ◽  
Corporate Governance ◽  
Stock Market ◽  
Dynamic Panel Data ◽  
Corporate Boards ◽  
African Countries ◽  
Dynamic Panel ◽  
Using Data ◽  
Policies And Programs

The study explored the link between corporate governance, stock market developments and economic growth by using data on selected African countries. Analysis was done within the Arellano-Bond Dynamic Panel data modelling. Results show that corporate governance and particularly the independence of corporate boards is important for firm performance and economic growth and that stock markets also play an important role in economic development. However, while market size is conclusive, our findings points to the fact that an increase in stock market activities must be focused and carefully supported with appropriate mix of policies and programs in order to achieve the desired impact on economic growth because too many policies could erode the effect of critical indicators.

scholarly journals PERAN RISET DAN PENGEMBANGAN (R&D) AKADEMIS TERHADAP PERTUMBUHAN EKONOMI

2020 ◽  
pp. 115
Author(s):  
Abdul Khaliq
Keyword(s):  
Economic Growth ◽  
Developing Countries ◽  
Panel Data ◽  
Research And Development ◽  
Panel Data Analysis ◽  
Academic Research ◽  
Dynamic Panel Data ◽  
Dynamic Panel ◽  
Advanced Economies ◽  
Positive Effect

This study empirically examines the role of research and development (R&D) in the universities on economic growth. Using yearly data over the period 1996-2013 for 32 advanced economies and 46 developing countries in the world, the empirical results are estimated by static- and dynamic-panel data to provide evidence in favor of the impact of academic research and development on economic growth. The empirical evidence suggests that the static- and dynamic-panel data analysis estimates well characterize how academic research and development (R&D) influences economic growth in advanced economies and developing countries. Static panel data analysis in the light of fixed effect method (FEM) suggest positive effect of academic research and development on economic growth both in advance economies and developing countries. Moreover, dynamic panel data (Arrelano-Bond and Blundell-Bond) analysis finds academic research and development has consistently positive effect on economic growth in advanced economies, unfortunately academic R&D has negative effect on economic growth in developing countries. Based on the results, this study recommends for developing countries especially Indonesia to pay specific attention to academic R&D at universities by commercialization of new inventions and knowledge to attract industry.

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