The Effect of Export Diversification on Economic Growth

2021 ◽  
pp. 381-393
Author(s):  
Mehmet Hilmi Özkaya ◽  
Tuba Yücel
Keyword(s):  
Economic Growth ◽  
Product Variety ◽  
Product Diversification ◽  
Causality Test ◽  
Panel Causality ◽  
Country Group ◽  
Brics Countries ◽  
Using Data ◽  
The Relationship

There are many studies on the growth of emerging economies under the leadership of foreign trade in the literature. The majority of the mentioned studies reveal that exports increase growth. In addition to expressing the increase in exports in numbers in recent years, it is also seen that researches about its effect on growth are also prominent. In this context, Dumitruscu-Hurlin (2012) panel causality test was applied using data covering the period of 1990-2018 to determine the relationship between Turkey and BRICS countries' product diversification in exports and economic growth. Findings obtained shows that product variety in exports in the relevant country group is effective on long-term economic growth.

The Relationship Between R&D Expenditures and Economic Growth ın OECD Countries With Different Causality Tests

2020 ◽  
pp. 107-118
Author(s):  
Gökhan Karhan
Keyword(s):  
Economic Growth ◽  
Research And Development ◽  
Oecd Countries ◽  
Causality Test ◽  
Panel Causality ◽  
Rolling Window ◽  
Causality Tests ◽  
Mathematical Techniques ◽  
Rolling Windows ◽  
The Relationship

In this chapter, the relationship between research and development (R&D) expenditures and economic growth was investigated with both Emirmahmutoğlu and Köse Causality test and the Dimitrescu and Hurlin Panel Causality test based on Rolling Windows Regression for the selected 19 OECD member countries for the period 1996-2015. The results concluded that for all panel there is a causality from economic growth to R&D expenditures. In this study, the relationship between variables was investigated using different mathematical techniques like rolling windows. According to the results of the Dimitrescu and Hurlin Panel Causality Test based on Rolling Window Regression, which is applied differently from other studies in the literature, there was a causality from economic growth to R&D expenditures in 2010. In 2011, there was causality from R&D expenditures to economic growth for all panels.

scholarly journals Tourism and Economic Growth in G10 Countries

Tourism ◽  
2021 ◽  
Vol 69 (1) ◽  
pp. 112-126
Author(s):  
Uğur Korkut Pata
Keyword(s):  
Economic Growth ◽  
Sustainable Development ◽  
Annual Data ◽  
Negative Events ◽  
Economic Activities ◽  
Causality Test ◽  
Panel Causality ◽  
Tourism Sector ◽  
Causality Relationship ◽  
The Relationship

This study proposes an asymmetric panel causality test to analyze the relationship between tourist arrivals and economic growth. To this end, annual data over the period 1995–2017 are examined for the G10 countries. The findings demonstrate that the relationship between tourism and economic growth varies according to positive and negative shocks. In terms of positive shocks, tourism development causes economic growth. The study also finds a bidirectional causality relationship between the negative shocks of the variables. Therefore, positive developments in tourism contribute to economic growth, while negative events in tourism impede growth. In sum, tourism is strongly linked to economic activities in G10 countries, and thus policymakers should attach importance to the tourism sector in order to support sustainable development.

Financial Globalization and Economic Growth

2020 ◽  
pp. 99-116
Author(s):  
Murat Gündüz
Keyword(s):  
Economic Growth ◽  
European Union ◽  
Developed Countries ◽  
Financial Globalization ◽  
The European Union ◽  
Causality Analysis ◽  
Causality Test ◽  
Causality Relationship ◽  
Using Data ◽  
The Relationship

The relationship between financial development and economic growth is one of the interesting topics of economic researches. Financial globalization is a term used to open up capital markets to the international arena and to capitalize on developed countries to developing countries. This chapter investigates the causality relationship between financial globalization and economic growth. In this study, the panel causality test of Emirmahmutoğlu and Kose (2011) was used for the European Union countries by using data from 1996-2016 period. According to the causality analysis conducted for the European Union, there is a causality from general financial globalization index to economic growth, from de facto financial globalization to economic growth and from economic growth to De jure financial globalization index.

scholarly journals Another Look into the Relationship between Economic Growth, Carbon Emissions, Agriculture and Urbanization in Thailand: A Frequency Domain Analysis

Energies ◽  
2021 ◽  
Vol 14 (16) ◽  
pp. 5132
Author(s):  
Mário Nuno Mata ◽  
Seun Damola Oladipupo ◽  
Rjoub Husam ◽  
Joaquim António Ferrão ◽  
Mehmet Altuntaş ◽  
...  
Keyword(s):  
Economic Growth ◽  
Energy Consumption ◽  
Frequency Domain ◽  
Co2 Emissions ◽  
Frequency Domain Analysis ◽  
Causal Connection ◽  
Causality Test ◽  
Macroeconomic Indicators ◽  
The Relationship

This empirical study assesses the effect of CO2 emissions, urbanization, energy consumption, and agriculture on Thailand’s economic growth using a dataset between 1970 and 2018. The ARDL and the frequency domain causality (FDC) approaches were applied to assess these interconnections. The outcome of the bounds test suggested a long-term association among the variables of investigation. The ARDL outcomes reveal that urbanization, agriculture, energy consumption, and CO2 emissions positively trigger Thailand’s economic growth. Additionally, the frequency domain causality test was used to detect a causal connection between the series. The main benefit of this technique is that it can detect a causal connection between series at different frequencies. To the understanding of the authors, this is the first study in the case of Thailand that will apply the FDC approach to capture the causal linkage between GDP and the regressors. The outcomes of the causality test suggested that CO2 emissions, urbanization, energy consumption, and agriculture can predict Thailand’s economic growth in the long term. These outcomes have far-reaching implications for economic performance and Thailand’s macroeconomic indicators.

scholarly journals An Empirical Analysis of the Link between Economic Growth and Exports in Côte d’Ivoire

2019 ◽  
Vol 12 (9) ◽  
pp. 94
Author(s):  
Daouda Coulibaly ◽  
Fulgence Zran Goueu
Keyword(s):  
Economic Growth ◽  
Gross Domestic Product ◽  
Causal Relationship ◽  
Empirical Analysis ◽  
Annual Data ◽  
Short Term ◽  
Causality Test ◽  
Long Run ◽  
The Relationship

This paper aims to analyze the relationship between exports and economic growth in Côte d’Ivoire. In order to achieve this objective, annual data for the period 1960-2017 were tested by using the cointegration approach of Pesaran, Shin and Smith, including the causality test of Breitung and Schreiber. According to our analysis it is only exports that drive economic growth and not the opposite. Exports act positively and significantly on economic growth in the short term as well as in the long term. The causality test of Breitung and schreiber indicates a one-way long-run causal relationship ranging from exports to gross domestic product (GDP). All those results show that exports are a source of Ivorian economic growth.

scholarly journals The Relationship between Public Expenditures and Economic Growth in Transition Economies

2020 ◽  
Author(s):  
Mustafa Batuhan Tufaner
Keyword(s):  
Economic Growth ◽  
Transition Economies ◽  
Transition Period ◽  
Unit Root Test ◽  
Public Expenditures ◽  
Cointegration Tests ◽  
Causality Tests ◽  
Using Data ◽  
The Relationship

The effect of public expenditures on economic growth gained importance, especially after the First World War. In this study, the effect of public expenditures on economic growth was analyzed using data from the 1996-2017 period for 12 Transition Economies (Azerbaijan, Belarus, Armenia, Georgia, Kazakhstan, Kyrgyzstan, Moldova, Russia, Tajikistan, Turkmenistan, Ukraine, and Uzbekistan) in the transition period. In this context, the relationship between public expenditures and economic growth is investigated by applying unit root test, short and long term cointegration tests and causality tests. According to the results of the analysis, there is a long-term negative cointegration relationship between public expenditures and economic growth. However, there is a two-way causal relationship between public expenditures and economic growth.

Can conventional energy be replaced by renewable energy without harming economic growth in non-oil-MENA? Evidence from Granger causality in VECM

2019 ◽  
Vol 15 (2) ◽  
pp. 159-168
Author(s):  
Badry Hechmy
Keyword(s):  
Economic Growth ◽  
Renewable Energy ◽  
Energy Consumption ◽  
Granger Causality ◽  
Renewable Energy Consumption ◽  
Causality Test ◽  
Content Type ◽  
Investigation Methods ◽  
The Relationship

Purpose The purpose of this paper is to examine the relationship between renewable energy consumption and economic growth in non-oil countries in the Middle East and North Africa (non-oil-MENA) during the period from 2000 to 2014. The Pedroni (2000) test shows that there is a long-term cointegration relationship between those variables; however, the Granger causality test in the vector error correction model (VECM) shows that this relationship is bidirectional in the short and long term. Thus, to ensure sustainable economic growth without pollution and to reduce dependence on abroad, renewable energies can be chosen as substitutes for conventional energies in the non-oil-MENA countries. Design/methodology/approach First, LLC and IPS unit root tests are used to test the variables stationarity; and, second, Pedroni panel cointegration and Engle–Granger causality by VECM analysis are used to check the relationship between the studied variables. Findings Empirical results show that the renewable energy consumption and economic growth are cointegrated and that there are two-way causal relationships between them in the long and in the short term. These countries must therefore encourage the consumption of renewable energy instead of traditional energy to reduce their dependence on energy from abroad and CO2 pollution. Originality/value The originality of this work lies in the measurements of the study variables and the empirical investigation methods used.

Study of the Relationship among Economic Growth, Export and Energy Consumption in China

2014 ◽  
Vol 694 ◽  
pp. 542-546
Author(s):  
Xiao Wei Yang
Keyword(s):  
Economic Growth ◽  
Energy Consumption ◽  
Granger Causality ◽  
Granger Causality Test ◽  
Analytical Framework ◽  
Test Method ◽  
Causality Test ◽  
Equilibrium Relationship ◽  
The Relationship

This paper uses co-integration theories and Granger causality test method to analyze the inter-linkages among China's economic growth, export and energy consumption within a unified analytical framework. The results show that there exists a long-term equilibrium relationship between economic growth, exports and energy consumption, and economic growth and exports both promote energy consumption in the long term. Furthermore, there exist bi-directional Granger causality between economic growth and energy consumption, export and energy consumption respectively.

scholarly journals The Relationship Between Foreign Direct Investment Oriented Economic Growth in Uganda: An Empirical Study Based on VAR Model

2021 ◽  
Author(s):  
Nabyonga Barbra ◽  
Hina Nawaz
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
Var Model ◽  
Vector Autoregressive Model ◽  
Causality Test ◽  
Vector Autoregressive ◽  
Long Run ◽  
The Relationship

The purpose of this paper is to investigate the relationship between Foreign Direct Investment (FDI) and Economic growth as measured by Gross Domestic Product (GDP) over Uganda, from 1980-2018. Vector Autoregressive Model (VAR) and Granger Causality test were used. The results show thatlag 1 is the optimal lag hence bivariate VAR (1) model was used. GDP and FDI exhibits long-term equilibrium since the two-time series are cointegrated in long run. The causality test indicates that there exists a unilateral relationship between FDI and GDP, and FDI causes GDP growth and not vice versa. Understanding these causality links can help in future forecasting of Uganda's economic growth.

scholarly journals Health Expenditure-Economic Growth Relationship in OECD Countries

2020 ◽  
Author(s):  
Mustafa Batuhan Tufaner ◽  
Fatma Dizge ◽  
Zeynep Emir
Keyword(s):  
Economic Growth ◽  
Developing Countries ◽  
Capital Accumulation ◽  
Health Expenditure ◽  
Health Expenditures ◽  
Oecd Countries ◽  
Causality Test ◽  
Cross Sectional ◽  
Panel Causality ◽  
The Relationship

Capital accumulation is one of the most important components of economic growth. Health expenditure is also one of the ways to increase capital accumulation and thus economic growth. Therefore, the relationship between health expenditure and economic growth is of great importance especially for developing countries. In this context, the relationship between health expenditures and economic growth was investigated for the period 2000-2016 and for 36 OECD countries. For this purpose, firstly unit root tests were performed in the study and then panel cointegration and panel causality tests were applied to determine the relationship between the two variables. Since there was a cross-sectional dependence in the variables, second-generation panel tests were used. As a result of the cointegration test, it is understood that there is no cointegration relationship between health expenditures and economic growth. The panel causality test revealed that there was no causality from health expenditures to economic growth, but there was a causality relationship from economic growth to health expenditures. Findings from the study show that health expenditure does not affect economic growth, but economic growth increases health expenditure in the short term. Therefore, it can be stated that developing countries have the advantage of time to increase the quality of health services.

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