Knowledge Governance and Economic Growth in Arab Countries

2014 ◽  
pp. 364-393 ◽  
Author(s):  
Antonio Rodriguez Andrès
Keyword(s):  
Economic Growth ◽  
Arab Countries ◽  
Policy Implications ◽  
Medium Term ◽  
African Countries ◽  
Governance Indicators ◽  
The Status ◽  
Knowledge Economies ◽  
Knowledge Governance ◽  
The Impact

The present chapter deals with three interdependent components related to knowledge governance. The first one examines the effect of knowledge governance on medium term growth. Using the software industry as benchmark, the authors’ findings suggest that poor knowledge governance reduces economic growth over the medium term, but the relationship is non-linear. The second one analyzes the impact of formal institutions on economic knowledge and its related variables. In particular, the role of various governance indicators is examined. The results show that institutional quality plays an important role in the relative performance of MENA and African countries in building up the knowledge economy. The last aspect analyzed in this chapter is to establish the status of Arab economies in terms of their transformation to knowledge economies and empirically examine the impact of knowledge and its related variables on economic performance. Policy implications are also discussed.

scholarly journals Does Institutional Quality Influence the Oil price-economic Growth Nexus: Evidence from African Oil Exporting Economies

2021 ◽  
Vol 6 (5) ◽  
pp. 56-69
Author(s):  
Lucky Tuzuka Musikavanhu ◽  
Jonah B. Tlhalefang ◽  
Mogale Ntsosa ◽  
Malebogo Bakwena
Keyword(s):  
Economic Growth ◽  
Institutional Quality ◽  
Growth Patterns ◽  
Oil Price ◽  
Policy Implications ◽  
African Countries ◽  
Price Changes ◽  
Study Results ◽  
Interaction Term ◽  
The Impact

The primary contribution of this study is to investigate how institutional quality affects the relationship between the oil price changes and economic growth on net oil exporters in African countries split into net oil exporters and net oil importers. Whether oil price changes are good for the growth patterns of African economies lies on the interaction between oil prices and institutional quality. Oil price increases for oil exporting economies result in increased revenue which will be distributed to economic boosters of the economy however, the net effect of such revenues to the economies solely depends on how institutions distribute the oil rents to the various sectors of the economy. In contrast to the traditional direct effect of oil price changes to economic growth, this study shows that the impact of oil price on economic growth is non-monotonic in institutional quality. Oil exporting economies can benefit from oil price increase if they have good institutions. This has been assessed by including an interaction term, oil price-institutional quality, in the Panel Auto-Regressive (PARDL) using the Pooled Mean Group (PMG) model. Such a methodological framework has an added advantage over other model as it allows for modelling of data with different orders of integration. The PMG estimator allows the intercepts, short-run coefficient, and the error variance to differ freely across groups while the long-run coefficients are the same. Using data from 1990 to 2016, it is revealed that the sign of the coefficient interaction is positive and significant as theoretically expected. Furthermore, the coefficient of the interaction term is greater than the coefficient of oil price as anticipated. This would mean that as long as institutional quality is good enough, oil price changes positively influence economic performance on oil exporting economies. As such, the findings of this thesis have important policy implications. Since implementation of quality institutions is an on-going process, the study results suggest that institutions should be strengthened towards economic activities rather than for political mileage.

Remittances, Economic Growth and Poverty: A Case of African OIC Member Countries

2018 ◽  
Vol 57 (2) ◽  
pp. 121-143
Author(s):  
Nasim Shah Shirazi ◽  
Sajid Amin Javed ◽  
Dawood Ashraf
Keyword(s):  
Economic Growth ◽  
Financial Development ◽  
Poverty Reduction ◽  
Simultaneous Equation ◽  
Equation Model ◽  
Annual Data ◽  
Simultaneous Equation Model ◽  
African Countries ◽  
Alternative Source ◽  
The Impact

This paper investigates the impact of remittance inflows on economic growth and poverty reduction for seven African countries using annual data from 1992-2010. By using the depth of hunger as a proxy for poverty in a Simultaneous Equation Model (SEM), we find that remittances have statistically significant growth enhancing and poverty reducing impact. Drawing on our estimates, we conclude that financial development level significantly increases the remittances inflows and strengthens poverty alleviating impact of remittances. Results of our study further show a signficant interactive imapct of remittances and finacial develpment on economic growth, suggesting the substitutability between remittance inflows and financial development. We further find that 3 percentage point increase in credit provision to the private sector (financial development) can help eliminate the severe depth of hunger in the region. Remittances, serving an alternative source of private credit, can be effective in this regard. Keywords: Remittance Inflow, Poverty Alleviation, Financial Development, Simultaneous Equation Model

scholarly journals Financial Inclusion, Income Inequality and Sustainable Economic Growth in Sub-Saharan African Countries

2021 ◽  
Vol 13 (4) ◽  
pp. 1780
Author(s):  
Chima M. Menyelim ◽  
Abiola A. Babajide ◽  
Alexander E. Omankhanlen ◽  
Benjamin I. Ehikioya
Keyword(s):  
Economic Growth ◽  
Income Inequality ◽  
Financial Services ◽  
Sub Saharan Africa ◽  
Kuznets Curve ◽  
African Countries ◽  
Financial Access ◽  
Sub Saharan ◽  
Sustainable Economic Growth ◽  
The Impact

This study evaluates the relevance of inclusive financial access in moderating the effect of income inequality on economic growth in 48 countries in Sub-Saharan Africa (SSA) for the period 1995 to 2017. The findings using the Generalised Method of Moments (sys-GMM) technique show that inclusive financial access contributes to reducing inequality in the short run, contrary to the Kuznets curve. The result reveals a negative effect of financial access on the relationship between income inequality and economic growth. There is a positive net effect of inclusive financial access in moderating the impact of income inequality on economic growth. Given the need to achieve the Sustainable Development Targets in the sub-region, policymakers and other stakeholders of the economy must design policies and programmes that would enhance access to financial services as an essential mechanism to reduce income disparity and enhance sustainable economic growth.

Fiscal Deficit and Economic Growth in Bangladesh

2016 ◽  
Vol 62 (1) ◽  
pp. 31-42 ◽  
Author(s):  
Ebney Ayaj Rana ◽  
Abu N. M. Wahid
Keyword(s):  
Economic Growth ◽  
Budget Deficit ◽  
Negative Impact ◽  
Political Stability ◽  
Ordinary Least Squares ◽  
Policy Implications ◽  
Government Budget ◽  
The Government ◽  
The Impact ◽  
Government Budget Deficit

The economy of Bangladesh is currently going through a period of continuous budget deficit. The present data suggest that the government budget deficit, on average, is nearly 5% of the country’s GDP. This has been true since the early 2000s. To finance this deficit, governments have been borrowing largely from domestic and foreign sources resulting in inflationary pressure on one hand, and crowding out of private investments on the other. During the same period, although the economy has grown steadily at a rate of more than 6%, this growth is less than the potential. This article presents an econometric study of the impact of government budget deficits on the economic growth of Bangladesh. We conduct a time-series analysis using ordinary least squares estimation, vector error correction model, and granger causality test. The findings suggest that the government budget deficit has statistically significant negative impact on economic growth in Bangladesh. Policy implications of our findings include reestablishing the rule of law, political stability in the country, restructuring tax structure, closing tax loopholes, and harmonizing fiscal policy with monetary policy to attract additional domestic and foreign investment.

scholarly journals Environmental Performance and Economic Growth in Middle East and North Africa Countries

2019 ◽  
Vol 9 (24) ◽  
Author(s):  
Hichem Dkhili
Keyword(s):  
Economic Growth ◽  
Middle East ◽  
North Africa ◽  
Environmental Performance ◽  
Middle Eastern ◽  
Smooth Transition ◽  
African Countries ◽  
Mena Region ◽  
Mena Countries ◽  
The Impact

Background. Studies on environmental performance/quality and economic growth show inconclusive results. Objective. The aim of the present study is to assess the non-linear relationship between environmental performance and economic growth in the Middle East and North Africa (MENA) region from 2002–2018. Methods. A sample of fourteen (14) MENA countries was used in the present analysis. However, due to important differences between countries in this region, the whole sample was divided into two sub-samples; nine Middle Eastern countries (MEAS) and five North African countries (NAF). We performed the panel smooth transition regression model as an econometric approach. Discussion. Empirical results indicate a threshold effect in the environmental performance and economic growth relationship. The threshold value differs from one group of countries to another. More specifically, we found that the impact of environmental performance and economic growth is positive and significant only if a certain threshold level has been attained. Until then, the effect remains negative. Conclusions. The findings of the present study are of great importance for policymakers since they determine the optimal level of environmental performance required to act positively on the level of economic growth. MENA countries should seek to improve their environmental performance index in order to grow output. Competing Interests. The authors declare no competing financial interests.

Multi-Dimensional Factors Impacting on E-Government Adoption in Botswana, Mozambique, and Malawi

2013 ◽  
pp. 58-71
Author(s):  
Kelvin Joseph Bwalya ◽  
Tanya Du Plessis ◽  
Chris Rensleigh
Keyword(s):  
Positive Impact ◽  
Base Stations ◽  
African Countries ◽  
Ict Skills ◽  
Government Services ◽  
Left Behind ◽  
Literature Reviews ◽  
The World ◽  
The Status ◽  
The Impact

With widespread adoption of ICT usage in public service delivery platforms (e-Government) throughout the world, African countries have vowed not to be left behind in this marathon. Robust e-Government adoption depends on the strategy employed to implement it. This paper presents the different initiatives that have been employed to promote e-Government development and development in Botswana, Mozambique and Malawi thereby showing the impact of such initiatives on overall e-Government agenda. Using extensive document and literature reviews, this paper further intends to investigate the status of e-Government implementation in these three countries and understand the multi-dimensional factors that dictate adoption and use of e-Government services. The paper has found that deliberate fiscal ICT policies, trust of e-applications, availability of ICT infrastructures such as appropriate mobile phone and base stations technology, usability of ICT platforms, and relevant ICT skills of ordinary citizens have a lasting positive impact on people’s intention to engage in e-Government.

Interest rate liberalization and economic growth nexus: does corruption matter?

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Abdulhadi Aliyara Haruna ◽  
Abu Sufian Abu Bakar
Keyword(s):  
Economic Growth ◽  
Interest Rate ◽  
Positive Impact ◽  
Reform Process ◽  
Negative Effects ◽  
African Countries ◽  
Cross Sectional ◽  
Content Type ◽  
Interest Rate Liberalization ◽  
The Impact

Purpose This paper aims to examine the impact of interest rate liberalization on economic growth and the relevance of corruption in the five selected sub-Saharan African countries. Design/methodology/approach The study used the modified version of Driscoll and Kraay’s model by Hoechle, which solved the effects of cross-sectional dependence and heteroscedasticity. Findings The findings reveal a positive impact of the index on economic growth, and it was found that foreign direct investment (FDI) and credit to private sector by banks (CPSB) all stimulate economic growth. The interaction terms of corruption with FDI and CPSB indicate negative effects that show how corruption erodes the benefits of liberalization. Finally, the paper recommends the pursuit of appropriate policies with the sole aim of eradicating corruption and providing a conducive environment for business. Originality/value The paper developed a composite domestic financial liberalization index to capture the timing and essential dimensions of the reform process. The study investigates the effect of interest rate liberalization on economic growth and the relevance of corruption. Most of the recent and past studies only examined the impact of interest rate reforms on growth without investigating the relevance of corruption.

scholarly journals The human capital–economic growth nexus in SSA countries: what can strengthen the relationship?

2020 ◽  
Vol 47 (9) ◽  
pp. 1143-1159
Author(s):  
Roseline Tapuwa Karambakuwa ◽  
Ronney Ncwadi ◽  
Andrew Phiri
Keyword(s):  
Economic Growth ◽  
Human Capital ◽  
Least Squares ◽  
Ordinary Least Squares ◽  
African Countries ◽  
Content Type ◽  
Econometric Approach ◽  
The Impact ◽  
The Relationship ◽  
Ssa Countries

PurposeThe purpose of this study is to examine the impact of human capital on economic growth for a selected sample of nine SSA countries between 1980 and 2014 using a panel econometric approach.Design/methodology/approachThe authors estimate a log-linearized endogenous using the fully modified ordinary least squares (FMOLS) and the dynamic ordinary least squares (POLS) applied to our panel data time series.FindingsThe empirical analysis shows an insignificant effect of human capital on economic growth for our selected sample. These findings remain unchanged even after adding interactive terms to human capital, which are representatives of government spending as well as foreign direct investment. Nevertheless, the authors establish a positive and significant effect of the interactive term between urbanization and human capital on economic growth.Practical implicationsThe results emphasize the need for African policymakers to develop urbanized, “smart”, technologically driven cities within the SSA region as a platform toward strengthening the impact of human capital-economic growth relationship.Originality/valueThis study becomes the first in the literature to validate the human capital–urbanization–growth relationship for African countries.

scholarly journals Corruption, governance and economic growth in Sub-Saharan Africa: a need for the prioritisation of reform policies

2014 ◽  
Vol 10 (2) ◽  
pp. 316-330 ◽  
Author(s):  
Kamil Omoteso ◽  
Hakeem Ishola Mobolaji
Keyword(s):  
Economic Growth ◽  
Rule Of Law ◽  
Political Stability ◽  
Content Type ◽  
Governance Indicators ◽  
Data Framework ◽  
Regulatory Quality ◽  
The Impact ◽  
Control Of Corruption ◽  
Ssa Countries

Purpose – This study aims to investigate the impact of governance indices (especially control of corruption) on economic growth in some selected Sub-Sahara African (SSA) countries with a view to making policy recommendations. Specifically, the study attempts to assess whether either governance reforms (especially those relating to control of corruption) or simultaneous policy reforms could have any impact on the growth of the sample SSA countries. Design/methodology/approach – The governance indicators used in this study were drawn from the PRS Group and the Worldwide Governance Indicators for 2002-2009, while the real gross domestic product (GDP) per capita growth data were obtained from the World Bank database. The study covered 47 SSA countries, and it adopted the panel data framework, the fixed effect, the random effect and the maximum likelihood estimation techniques for the analyses. Findings – The study found that political stability and regulatory quality indicators have growth-enhancing features, as they impact on economic growth in the region significantly, while government effectiveness impacts negatively on economic growth in the region. Despite, several anti-corruption policies in the region, the impact of corruption control on economic growth is not very obvious. The study also found that simultaneous implementation of the voice and accountability and the rule of law indicators has more positive impact on economic growth in the region. Both policies are complementary, and, hence, can be pursued simultaneously. Research limitations/implications – The results suggest that reform efforts that aim at enhancing accountability, regulatory quality, political stability and the rule of law have more growth-enhancing features and, thus, should be given more priority over reform efforts that singly address the issue of control of corruption due to the endemic, systemic and ubiquitous nature of corruption in the region. Practical implications – The study suggests that reform efforts that aim at enhancing accountability, regulatory quality and rule of law have more growth-enhancing features and, therefore, should be given more priority. Originality/value – Many previous studies attempted to examine the impact of corruption on economies, but this paper tries to assess the effect of corruption control and other governance indices on economic growth in the most vulnerable region of the world, the SSA. Besides, the study adopts the panel data framework which makes it possible to allow for differences in the form of unobservable individual country effects.

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