scholarly journals Does fiscal consolidation promote economic growth and employment? Evidence from the PIIGGS countries

2018 ◽  
Vol 15 (3) ◽  
pp. 289-312 ◽  
Author(s):  
Philip Arestis ◽  
Ayşe Kaya ◽  
Hüseyin Şen
Keyword(s):  
Economic Growth ◽  
Great Britain ◽  
Granger Causality ◽  
Annual Data ◽  
Causality Analysis ◽  
Fiscal Consolidation ◽  
Individual Country ◽  
Granger Causality Analysis

Using annual data over the period 1980–2014, this paper attempts to provide an answer to the question of whether fiscal consolidation promotes growth and employment in the context of the PIIGGS countries (Portugal, Ireland, Italy, Greece, Great Britain, and Spain) by using the Bootstrap Granger causality analysis proposed by Kónya (2006), which allows testing for causality on each individual country separately, and by accounting for dependence across countries. Our findings indicate that in no country considered does fiscal consolidation promote growth. However, fiscal consolidation negatively affects employment in Portugal and Italy, whereas it positively influences employment in Great Britain. Based on our findings, we may suggest that the effects of fiscal consolidation on employment produce mixed results, varying from country to country.

scholarly journals The granger causality relationship between human development and economic growth

2020 ◽  
Vol 9 (6) ◽  
pp. 143-153
Author(s):  
Serdar Ozturk ◽  
Seher Suluk
Keyword(s):  
Economic Growth ◽  
Human Development ◽  
Granger Causality ◽  
Human Development Index ◽  
Causality Analysis ◽  
Developed Country ◽  
Development Index ◽  
Granger Causality Analysis ◽  
Empirical Level ◽  
Causality Relationship

The Human Development Index (HDI), which measures a country’s human development level, considering the health, education and income indicators of countries has been published in the Human Development Report each year since 1990 by the United Nations Development Programme. Norway, which is a highly developed country, was at the top of the Human Development Index. Therefore, the aim of this study is to evaluate Norway’s human development performance. In this context, the relationship between human development and economic growth has been examined at empirical level for Norway for the period between 1990-2017. In the study, firstly, ADF and PP unit root tests were performed. Then, Granger causality analysis was applied. According to the results of Granger causality analysis there is a one-way causality relationship from human development to economic growth.

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