scholarly journals Islamic Finance and Economic Growth Nexus: An Econometric Analysis

2019 ◽  
Vol 2 (1) ◽  
pp. 11-22
Author(s):  
Kashif Raza ◽  
Rashid Ahmad ◽  
Muhammad Abdul Rehman Shah ◽  
Muhammad Umar
Keyword(s):  
Economic Growth ◽  
Time Series Data ◽  
Trade Openness ◽  
Unit Root Test ◽  
Least Square ◽  
Series Data ◽  
Islamic Finance ◽  
Causality Test ◽  
Economic Agents ◽  
Fixed Capital Formation

Researchers have written chain of research papers about the dynamics of financial development and economic growth. The financial capital plays a productive role when it delivers to economic agents who are facing shortage or excess of funds.  This study explores the linkages among Islamic financing and economic growth for Pakistan, by using annual time series data from 2005-2018. Islamic banks’ financing funds used as a proxy of Islamic financing, Gross Domestic Product (GDP), Gross Fixed Capital Formation (GFCF), labor force (LF),Broad money(M) and Trade openness (TO) to presents real sector of an economy. For the exploration, the unit root test, Ordinary least square technique and Granger causality test are applied. The results validate a substantial causal relationship of Islamic financing and GDP, which supports the Schumpeter’s supply-leading view. The results indicate that Islamic finance contributed towards economic growth.  

scholarly journals Effect of Foreign Aids on Economic Growth in Nigeria

2020 ◽  
pp. 194-204
Author(s):  
Isiaka Najeem Ayodeji ◽  
Makinde Wasiu Abiodun
Keyword(s):  
Economic Growth ◽  
Time Series Data ◽  
Unit Root Test ◽  
Secondary Data ◽  
Least Square ◽  
Series Data ◽  
Causality Test ◽  
Long Run ◽  
Integration Test ◽  
The Impact

This study investigated the impact of foreign aids on economic growth in Nigeria using time series data spanned from 1990 to 2017. The research considered the secondary data that were gathered from CBN statistical bulletin 2017 and World Bank Data Indictors. Ordinary Least Square techniques was adopted in the study and used Augmented Dickey-Fuller Unit Root Test, co integration test, granger causality test, ECM to estimates data employed. The findings revealed that all the variables employed were stationary at first difference and integrated at the same order1(I), the co-integration test shows that variables are co-integrated at one co-integrating equation which means that there is a long run relationship. The Error Correction Model established that the error that caused disequilibrium in the short run is being corrected in the long-run at a speed of adjustment at 6%. The findings revealed real gross domestic product responds inversely to changes in official development assistance and foreign direct investment. Based on these findings the study concluded that foreign aids have a significant impact on economic growth in Nigeria. Different diagnostic tests are applied in order to confirm the major assumption of multiple regression analysis like multicollinearity, heteroskedasticity and autocorrelation. Therefore, the study recommends among others that government needs to formulate strong and effective education and healthcare policies to facilitate and attract investment in the sectors and improve their efficiency in the long-run that will influence productivity.

A Sectoral Analysis of the Role of Stock Market Development on Economic Growth: Empirical Evidence from Indian Economy

2017 ◽  
Vol 18 (4) ◽  
pp. 911-923 ◽  
Author(s):  
Madhu Sehrawat ◽  
A.K. Giri
Keyword(s):  
Economic Growth ◽  
Stock Market ◽  
Stock Prices ◽  
Stock Price ◽  
Time Series Data ◽  
Trade Openness ◽  
Series Data ◽  
Causality Test ◽  
Long Run ◽  
Short Run

The present study examines the relationship between Indian stock market and economic growth from a sectoral perspective using quarterly time-series data from 2003:Q4 to 2014:Q4. The results of the autoregressive distributed lag (ARDL) approach bounds test confirm the existence of a cointegrating relationship between sector-specific gross domestic product (GDP) and sector-specific stock indices. The empirical results reveal that sector-specific economic growth are significantly influenced by changes in the respective sector-specific stock price indices in the long run as well as in the short run. Apart from that, the control variables, such as trade openness and inflation, act as the instrument variables in explaining the variations in the sector-specific GDP of the economy. The results of Granger causality test demonstrate unidirectional long-run as well as short-run causality running from sector specific stock prices to respective sector GDP. The findings suggest that economic growth of the country is sensitive to respective sub-sector stock market investments. The findings highlight the reasons for cyclical and counter-cyclical business phase for the overall economy.

Trade Openness, Foreign Direct Investment and Economic Growth: Empirical Evidence from India

2016 ◽  
Vol 6 (2) ◽  
Author(s):  
Brajaballav Pal
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
Time Series Data ◽  
Trade Openness ◽  
Unit Root Test ◽  
Series Data ◽  
Long Run ◽  
Integration Test ◽  
The Government

This paper examines the relationship among GDP, foreign direct investment and trade openness for India using time series data from 2001 to 2016. In this study unit root test is used to solve the problem of stationery and to determine the order of integration between the variables. Johnson co-integration test suggests that there is a long run equilibrium relationship among the variables by considering relationship between Gross Domestic Product (GDP), Foreign Direct Investment (FDI) and Trade Openness (TO). The result indicates that trade openness exerts influence on foreign direct investment. The government and policy makers should take up strategies to attract foreign investment so as to promote economic growth.

scholarly journals Finance and economic growth nexus: evidence from Gansu province in China

2021 ◽  
Vol 275 ◽  
pp. 01007
Author(s):  
Changchuan Zhang
Keyword(s):  
Economic Growth ◽  
Financial Development ◽  
Time Series Data ◽  
Unit Root Test ◽  
Output Growth ◽  
Gansu Province ◽  
Series Data ◽  
Financial Efficiency ◽  
Causality Test ◽  
Integration Test

This study investigates the association between financial development and economic growth in the long run using the time series data from 1985 to 2018 in financially undeveloped Gansu province in China. Regarding methodology, this paper employs ADF unit root test, Johansen co-integration test, VECM and Granger causality test to analyze the long-term relationship. The outcomes signal that the variables of financial depth, financial efficiency and economic growth are co-integrated, and the level of total financial development is negatively correlated with economic growth while financial efficiency is positively associated with output growth. In addition, there is a two-way causation between each pair of variables.

scholarly journals Educational Gender Gap, Economic Growth and Income Distribution: An Empirical Study of the Interrelationship in Cameroon

2017 ◽  
Vol 9 (3) ◽  
pp. 168
Author(s):  
Dobdinga C. Fonchamnyo ◽  
Nubonyin Hilda Fokong
Keyword(s):  
Economic Growth ◽  
Income Inequality ◽  
Income Distribution ◽  
Gender Gap ◽  
Time Series Data ◽  
Labour Force ◽  
Trade Openness ◽  
Least Square ◽  
Series Data ◽  
Theil Index

This study aimed at investigating the interrelationship existing between educational gender gap, economic growth and income distribution in Cameroon using time series data from 1970 to 2014 obtained from the World Bank Development indicators and University of Texas inequality project. For estimation, the three stage least square regression technique was employed to estimate the parameters of the system of equations. The econometrics results showed that, educational gender gap had a positive and significant effect on economic growth, while increase in income inequality deters growth in Cameroon. The results also revealed that the theil index of income inequality negatively and significantly affect the educational gender gap, while the proportion of female teachers in the labour force and trade openness had a positive influence on the educational gender gap. Based on the findings, it is recommended that policymakers should focus on socio-economic policies apt to reduce educational gender gap and income inequality and at promoting economic growth.

Impact of Trade Openness, FDI, Exchange Rate and Inflation on Economic Growth: A Case Study of Pakistan

2014 ◽  
Vol 1 (1) ◽  
pp. 236 ◽  
Author(s):  
Sadia Bibi ◽  
Syed Tauqeer Ahmad ◽  
Hina Rashid
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Exchange Rate ◽  
Direct Investment ◽  
Time Series Data ◽  
Negative Impact ◽  
Trade Openness ◽  
Least Square ◽  
Series Data ◽  
Trade Surplus

This study focuses on empirical analysis to find out the role of trade openness, inflation, imports, exports, real exchange rate and foreign direct investment in enhancing economic growth in Pakistan. The analysis based on time series data for the period 1980 to 2011. This paper uses ADF; PP and DF-GLS tests to find out stationarity of the variables and Co-integration and DOLS (Dynamic Ordinary Least Square) techniques have been used for the estimation. Co integration results indicated the long run relationship among the variables. However, negative impact of trade openness can be overcome by producing import substitutes and creating conditions for trade surplus. Furthermore, foreign direct investment and trade are considered vital elements that improve the influence of economic growth.  

scholarly journals Does trade openness cause economic growth in Bangladesh?

IIUC Studies ◽  
2020 ◽  
Vol 16 ◽  
pp. 99-110
Author(s):  
Sharmina Khanom
Keyword(s):  
Economic Growth ◽  
Time Series Data ◽  
Trade Openness ◽  
Unit Root Test ◽  
Positive Association ◽  
Series Data ◽  
Restrictive Trade ◽  
Annual Time Series ◽  
The Impact ◽  
The Relationship

Bangladesh has followed a restrictive trade policy immediately after its liberation. But the system was proven wrong, and gradually it opened up its market to others and started to improve its foreign trade. This paper investigates the impact of trade openness on Bangladesh's economic growth using annual time-series data for the period from 1972-73 to 2015-16. The paper uses such econometric tools as unit root test, cointegration test and error correction model to investigate the relationship between the variables. This study revealed a positive association between export and GDP but the opposite relation between import and GDP and recommended to enhance export earnings. IIUC Studies Vol.16, December 2019: 99-110

scholarly journals DOES TRADE OPENNESS PROMOTE ECONOMIC GROWTH? THE CASE OF SUDAN

2021 ◽  
Vol 2 (Volume 2) ◽  
pp. 123-132
Keyword(s):  
Economic Growth ◽  
Time Series Data ◽  
Trade Openness ◽  
Unit Root Test ◽  
Industrial Sector ◽  
Series Data ◽  
Kuznets Curve ◽  
Long Run ◽  
Short Run ◽  
The Impact

This study investigates the impact of trade openness on economic growth in Sudan. The study utilizes annual time series data from 1972 to 2019. The study adopts the unit root test. The Autoregressive Distributed Lag model has been used as an estimation technique. The results indicate that trade openness has a positive significant impact on the economic growth in short run. However, the impact is negative in the long run. When the long-run and short-run elasticity were compared the trade-led growth hypothesis was not found. It can be argued that the country is specialized in production of low-quality products and exporting primary products therefore the economic growth is negatively affected by trade openness. Moreover, the Environmental Kuznets Curve hypothesis results provide evidence against the existence of the hypothesis indicating that the country is still below the desired level of income. The study suggests that a country should promote the industrial sector which will help to export manufactured products and therefore will increase the productivity.

scholarly journals IMPACT OF GOVERNMENT SECURITY EXPENDITURE ON ECONOMIC GROWTH IN NIGERIA

2020 ◽  
Vol 7 (1) ◽  
pp. 211-225
Author(s):  
Amana Abu ◽  
◽  
Aigbedion Marvelous
Keyword(s):  
Economic Growth ◽  
Time Series Data ◽  
Capital Expenditure ◽  
Least Square ◽  
Series Data ◽  
Strong Impact ◽  
Causality Test ◽  
Defence Spending ◽  
The Impact ◽  
Government Security

This study is an attempt to assess the impact of government security expenditure on economic growth in Nigeria from 1986-2018. The study was carried out using time series data, and econometrics tools were used for testing and estimation. Augmented Dickey-Fuller (ADF) was used to test the stationarity, the Ordinary Least Square (OLS) and Error Correction Model (ECM) techniques were used to estimate the impact of government security expenditure on economic growth in Nigeria and the causality test was also carried out to show the casual relationship among the economic variables using Granger test. From the study’s findings, the data were stationary at various levels and the impact estimated result shows that government security expenditure has strong impact on economic growth in Nigeria given the R2 Square of 0.97. While long run result revealed that Government Recurrent Defence Spending in Nigeria (GRDEXP), Government Recurrent Internal Security Spending in Nigeria (GRISEXP) and Government Security Capital Expenditure in Nigeria (GSCAEXP) were statistically significant at 5% level of significance. Also, ECM result revealed that all the independent variables were statistically insignificant in explaining the variation in Real Gross Domestic Products (RGDP) in Nigeria except Government Recurrent Defence Spending in Nigeria (GRDEXP).Therefore, the study recommends that government should design a mechanism to ensure all monies spent in Security in Nigeria are accounted for economic growth in Nigeria.

scholarly journals TRADE OPENNESS AND ECONOMIC GROWTH IN MALAYSIA FROM 1980-2018

2020 ◽  
Vol 5 (2) ◽  
pp. 55-63
Author(s):  
Khairunisah Kamsin ◽  
James Alin ◽  
Mori Kogid
Keyword(s):  
Economic Growth ◽  
Time Series Data ◽  
Trade Openness ◽  
Unit Root Test ◽  
Wald Test ◽  
Real Effective Exchange Rate ◽  
Series Data ◽  
Long Run ◽  
The Impact ◽  
Bound Test

This study analyses the impact of trade openness on economic growth, between 1980-2018. This study using the unit root test (ADF) and the Philip and Perron (PP) test to examine the stationary of the time series data, the ARDL test to show the cointegration and long-run relationship between variables, and the Wald test to show the short-term effect of the variables. The finding shows that all variables have a long-run relationship with economic growth and the bound test shows that foreign direct investment (FDI) and the Real Effective Exchange Rate (REER) have a positive and significant relationship with economic growth. The study also found that openness is correlated with economic growth in Malaysia.

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