The Impact of Democratic and Economic Freedom on Economic Growth in Developing Countries: Pooled Cross Country Data Evidence

<p class="Default">This paper has explores the interplay between economic freedom, foreign direct investment and economic growth using panel data analysis for a sample of 79 developing countries from 1998 to 2014 by considering the level of economic freedom, as provided by the “Heritage Foundation”. Panel unit root, pedroni residual co-integration test, generalized least square (GLS), feasible GLS (FGLS), pooled OLS, random effect, fixed effect, poisson regression, prais-winsten, generalized method of movement (GMM) and generalized estimating equation (GEE) methods have used to estimates the relationship. According to the OLS and generalized method of movement the coefficient implies that a one standard deviation improvement in business freedom, trade freedom, size, investment freedom, property rights, freedom from corruption, labor freedom, financial freedom, fiscal freedom, monetary freedom increases FDI by 21.4%, 15.6%, 21.6%, 17.5%, 11.55, 9.1%, 6.9%, 8.5%, 7.4%, 10.3% and 56.1%, 45.3%, 58.3%, 51.6%, 33.7%, 39.2%, 47.4%, 41.6%, 32.5%, 38.5% points respectively and for the economic variable ,the coefficient implies that a one standard deviation improvement in GDPG and GDPPC increases FDI by 24.1%, 17.4% and 30.2%, 33.4% points respectively. By using the other method like random effect, fixed effect, poisson regression, prais-winsten and generalized estimating equation (GEE) method explores that economic freedom in the host country is a positive determinants of FDI inflows in developing countries and also the result suggests that foreign direct investment is positively correlated with the economic growth in the host countries.</p>

Download Full-text

Renewable Energy Development as a Driver of Economic Growth: Evidence from Multivariate Panel Data Analysis

Sustainability ◽

10.3390/su11082418 ◽

2019 ◽

Vol 11 (8) ◽

pp. 2418 ◽

Cited By ~ 15

Author(s):

Nadia Singh ◽

Richard Nyuur ◽

Ben Richmond

Keyword(s):

Economic Growth ◽

Developing Countries ◽

Renewable Energy ◽

Energy Production ◽

Developing Economies ◽

Panel Data Analysis ◽

Least Square ◽

Renewable Energy Production ◽

The Future ◽

The Impact

Renewable energy is being increasingly touted as the “fuel of the future,” which will help to reconcile the prerogatives of high economic growth and an economically friendly development trajectory. This paper seeks to examine relationships between renewable energy production and economic growth and the differential impact on both developed and developing economies. We employed the Fully Modified Ordinary Least Square (FMOLS) regression model to a sample of 20 developed and developing countries for the period 1995–2016. Our key empirical findings reveal that renewable energy production is associated with a positive and statistically significant impact on economic growth in both developed and developing countries for the period 1995–2016. Our results also show that the impact of renewable energy production on economic growth is higher in developing economies, as compared to developed economies. In developed countries, an increase in renewable energy production leads to a 0.07 per cent rise in output, compared to only 0.05 per cent rise in output for developing countries. These findings have important implications for policymakers and reveal that renewable energy production can offer an environmentally sustainable means of economic growth in the future.

Download Full-text

Impact of Project and Programme Aid on Economic Growth: A Cross Country Analysis

The Pakistan Development Review ◽

10.30541/v57i2pp.145-174 ◽

2018 ◽

Vol 57 (2) ◽

pp. 145-174

Author(s):

Pervez Zamurrad Janjua ◽

Malik Muhammad ◽

Muhammad Usman

Keyword(s):

Economic Growth ◽

Principal Component ◽

Economic Policies ◽

Method Of Moment ◽

System Equation ◽

Moment Estimation ◽

Country Analysis ◽

Procurement Reform ◽

Cross Country ◽

The Impact

This study examines the impact of foreign aid instruments, namely Project Aid and Programme Aid, on economic growth of 27 aid-receiving countries. The study constructs a system of three equations, i.e. growth, investment and human capital. Using the Generalised Method of Moment estimation technique, the study concludes that while Project Aid has a positive and significant impact on economic growth, Programme Aid has an insignificant impact on economic growth. Additionally, the study finds that economic policies do enhance effectiveness of aid at aggregate level. Therefore, the capacity of aid-recipient countries to effectively use their resources for economic development needs due consideration. Keywords: Project Aid, Programme Aid, Economic Growth, Conditionality, Procurement Reform, System Equation Method, Generalised Method of Moment (GMM), Principal Component Analysis

Download Full-text

The Road to Sustainable Development: Existing Problems and Solutions

International Journal for Modern Trends in Science and Technology - RTT2020 ◽

10.46501/ijmtst0709015 ◽

2021 ◽

Vol 7 (09) ◽

pp. 91-95

Author(s):

Kaustubh Jain

Keyword(s):

Economic Growth ◽

Developing Countries ◽

Biodiversity Loss ◽

Indigenous Communities ◽

The Road ◽

Existing Problems ◽

Problems And Solutions ◽

Long Time ◽

The Impact

The debate about developing countries having to choose between economic growth and biodiversity protection has been going on for a long time. This paper sought to add to existing literature written on that topic by exploring the relationship between economic growth and biodiversity loss. It argued that in the long term, developing countries need to protect biodiversity as a prerequisite for economic growth to occur and that the severe impact of biodiversity loss on vulnerable indigenous communities is a reason enough to make the protection of biodiversity a priority. The researcher first identified the primary reasons for why biodiversity occurs, then advocated for the prevention of biodiversity by exploring two impacts of biodiversity loss: the impact on indigenous communities and the impact on economic growth. The paper then briefly also explained the policies that both governments, as well as nongovernment actors, can implement in order to tackle biodiversity loss and protect our environment.

Download Full-text

Contingent Democrats: Industrialists, Labor, and Democratization in Late-Developing Countries

World Politics ◽

10.1017/s0043887100002598 ◽

2000 ◽

Vol 52 (2) ◽

pp. 175-205 ◽

Cited By ~ 92

Author(s):

Eva Bellin

Keyword(s):

Economic Growth ◽

International Economic ◽

Political Economy ◽

Developing Countries ◽

Economic Integration ◽

State Dependence ◽

Late Development ◽

Welfare Policies ◽

Support For Democracy ◽

The Impact

Many classic works of political economy have identified capital and labor as the champions of democratization during the first wave of transition. By contrast, this article argues for the contingent nature of capital and labor's support for democracy, especially in the context of late development. The article offers a theory of democratic contingency, proposing that a few variables, namely, state dependence, aristocratic privilege, and social fear account for much of the variation found in class support for democratization both across and within cases. Conditions associated with late development make capital and labor especially prone to diffidence about democratization. But such diffidence is subject to change, especially under the impact of international economic integration, poverty-reducing social welfare policies, and economic growth that is widely shared. Case material from Korea, Indonesia, Mexico, Zambia, Brazil, Tunisia and other countries is offered as evidence.

Download Full-text

The Impact of Reinsurance

10.1093/acrefore/9780190224851.013.185 ◽

2021 ◽

Author(s):

Niels Viggo Haueter

Keyword(s):

Economic Growth ◽

Developing Countries ◽

Insurance Industry ◽

Natural Catastrophes ◽

Security Interest ◽

Environmental Deterioration ◽

Stabilizing Effect ◽

The 1960S ◽

The Impact

Reinsurance is perceived to have a stabilizing effect on the direct insurance industry and thereby on the economy overall. Yet, research into how exactly reinsurance impacts various areas is scarce. Traditionally, studying the impact of reinsurance used to be in the domain of actuaries; since the 1960s, they have tried to assess how different contract elements can provide what came to be called “optimal reinsurance.” In the 2010s, such research was intensified in developing countries with the aim to deploy reinsurance to support economic growth and security. Interest in reinsurance increased when the industry became more visible in the 1990s as the impact of natural catastrophes started being linked to a changing climate. Reinsurers emerged as spokespeople for climate-related issues, and the industry took a lead role in arguing in favor of implementing measures to reduce environmental deterioration. Reinsurers, it was argued, have a vested interest in managing the impact of natural catastrophes. This triggered discussions about the role of reinsurance overall and about how to assess its impact. In the wake of the financial crisis of 2007 and 2008, interest in reinsurance again surged, this time due to perceived systemic impacts.

Download Full-text

Informational Competencies Entrepreneurship and Integral Values in Higher Education

Business Education and Ethics ◽

10.4018/978-1-5225-3153-1.ch030 ◽

2018 ◽

pp. 541-562

Author(s):

José Manuel Saiz-Alvarez ◽

Edgar Muñiz-Ávila ◽

Delia Lizette Huezo-Ponce

Keyword(s):

Higher Education ◽

Economic Growth ◽

Distance Education ◽

Developing Countries ◽

Emotional Intelligence ◽

Online Education ◽

Educational Processes ◽

Postgraduate Studies ◽

Business Behavior ◽

The Impact

Universities play a key role in modern societies inserted into a globalized economic world. This chapter studies how informational competencies, entrepreneurship, and integral values in higher education are necessary to foster economic growth and fight corruption. The authors especially are focused on distance education as it can be a tool to fight poverty by diminishing high illiteracy rates, mainly existing in developing countries. The purpose of the chapter is two-fold: 1) to study the impact of informational competencies in both education and entrepreneurship, and 2) to emphasize the importance of acquiring integral values by learners to be applied into educational processes based on emotional intelligence. As a result, students will be defined as prospective entrepreneurs endowed with the ability to recognize, internalize and understand emotions to be adjusted into relations and business behavior to impulse their goals. And in this sense, online education has an important role to play, especially in postgraduate studies, as in the case of MOOCs that are also analyzed.

Download Full-text

The Impact of Intellectual Property Reforms on ASEAN Member Countries

Transcontinental Strategies for Industrial Development and Economic Growth - Advances in Business Strategy and Competitive Advantage ◽

10.4018/978-1-5225-2160-0.ch007 ◽

2017 ◽

pp. 121-131

Author(s):

Michael D'Rosario

Keyword(s):

Economic Growth ◽

Developing Countries ◽

Intellectual Property ◽

Intellectual Property Rights ◽

Economic Benefit ◽

Foreign Firms ◽

Foreign Nationals ◽

Asean Member ◽

Property Reform ◽

The Impact

A number of studies have been conducted with regard to the economic impact of intellectual property reform on economic growth. Majority of these studies, particularly works of an empirical nature, have focused on highly industrialized economies, with the findings supporting the conclusion that intellectual property rights (IPRs) have been economically beneficial to industrialized economies. Little research has been conducted on the economic benefit of IPR within developing countries. The current study considers the impact of IPR within ASEAN member countries to determine whether reform activities have been beneficial to IPR activity. The findings are mixed, suggesting that for some categories of IPR, reform activities have been beneficial while in other instances, regulatory reforms have not had a discernable impact. Additionally, the findings also indicate that intellectual property reform, where effective has been most effective in generating additional intellectual property activity, as measured by intellectual property applications, amongst non-residents, rather than amongst domestic registrants. This finding supports the conclusion that reform activities have engendered confidence amongst foreign firms and foreign nationals.

Download Full-text