scholarly journals International Remittances and Economic Growth in Ghana: Does the Measure Of Financial Development Matter?

2020 ◽  
Vol 2 (1) ◽  
pp. 46-59 ◽  
Author(s):  
Samuel Antwi ◽  
Eugene Oware Koranteng ◽  
Eugene Oware Koranteng
Keyword(s):  
Economic Growth ◽  
Financial Development ◽  
Time Series Data ◽  
Negative Impact ◽  
Positive Impact ◽  
Series Data ◽  
Aggregate Output ◽  
Real Gdp ◽  
International Remittances ◽  
The Impact

Empirical results of the effect of international remittances on economic growth of individual countries and groups of countries have yielded mixed results. This study is intended to add to the debate on the impact of international remittances on the aggregate output of individual countries, Ghana in this case. An earlier panel data study found a negative impact of remittance on real GDP and prompted further research on the topic for individual countries and groups of countries. The papers which followed and were able to correct for endogeneity in the models, found a mild positive impact of private unrequited remittances on economic growth. The impact of remittances on economic growth of a particular country depends on the proportion of remittances invested and consumed, the level of financial development and the quality of institutions in the country. This study used time series data from 1990 to 2014 on Ghana and found a positive impact of remittances on the growth rate of real GDP. Engel and Granger Cointegration test and Error Correction Models were used. Remittances were found to be pro-cyclical. Granger causality tests which corrects for the errors of cointegrated variables found causality running from financial development to remittances and from remittances to real GDP. Remittances have been found in other studies to benefit the Ghanaian economy by reducing poverty and sustaining the current account. This study shows a positive impact of remittances on aggregate output. Thus requiring policies to increase the flows and encourage their investment. Keywords: International Remittances, Economic Growth, Ghana, Financial Development.

scholarly journals THE IMPACT OF EXCHANGE RATE VOLATILITY ON ECONOMIC GROWTH IN NIGERIA: A DYNAMIC ECONOMETRIC APPROACH

2021 ◽  
pp. 16-40
Author(s):  
Comfort Akinwolere Bukola ◽  
Keyword(s):  
Economic Growth ◽  
Exchange Rate ◽  
Time Series Data ◽  
Negative Impact ◽  
Positive Impact ◽  
Exchange Rate Volatility ◽  
Series Data ◽  
Balance Of Trade ◽  
Econometric Approach ◽  
The Impact

This study examined the impact of exchange rate volatility on economic growth in Nigeria. The study covers the period of 1986 to 2019. Using time series data, the methodology adopted is the Vector Error Correction Mechanism to explore the impact of exchange rate volatility on the selected macroeconomic variables. The result indicated that exchange rate volatility has a significant impact on economic growth, specifically it has a positive impact on inflation, unemployment and balance of trade. On the other hand it has a negative impact on economic growth and investment. The recommendations made include; that relevant authorities should try to avoid systematic currency devaluations in order to maintain exchange rate volatility at a rate that allows adjustment of the balance of payments.

The nexus between financial development and energy consumption: Estimating the role of foreign direct investment, economic growth and urbanization

2021 ◽  
pp. 0958305X2110453
Author(s):  
Jaleel Ahmed ◽  
Shuja ur Rehman ◽  
Zaid Zuhaira ◽  
Shoaib Nisar
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Energy Consumption ◽  
Financial Development ◽  
Latin American ◽  
Direct Investment ◽  
Negative Impact ◽  
Positive Impact ◽  
Supply And Demand ◽  
The Impact

This study examines the impact of financial development on energy consumption for a wide array of countries. The estimators used for financial development are foreign direct investment, economic growth and urbanization. The study employed a panel data regression on 136 countries with time frame of years 1990 to 2019. The model in this study deploys system GMM technique to estimate the model. The results show that financial development has a significant negative impact on energy consumption overall. Foreign direct investment and urbanization has significant impact on energy consumption. Also, economic growth positive impact on energy consumption its mean that economic growth promotes energy consumption. When dividing further the sample into different groups of regions such as Asian, European, African, North/Latin American and Caribbean countries then mixed results related to the nexus between financial development and energy consumption with respect to economic growth, urbanization and foreign direct investment. The policymakers in these different groups of countries must balance the relationship between energy supply and demand to achieving the sustainable economic development.

Relationship between Budget Deficit and Economic Growth: Evidence from Ethiopia

2021 ◽  
Vol 2 (2) ◽  
pp. 10-15
Author(s):  
Desalegn Emana
Keyword(s):  
Economic Growth ◽  
Interest Rates ◽  
Budget Deficit ◽  
Time Series Data ◽  
Negative Impact ◽  
Positive Impact ◽  
Negative Relationship ◽  
Nominal Exchange Rate ◽  
Series Data ◽  
Long Run

This study examined the relationship between budget deficit and economic growth in Ethiopia using time series data for the period 1991 to 2019 by applying the ARDL bounds testing approach. The empirical results indicate that budget deficit and economic growth in Ethiopia have a negative relationship in the long run, and have a weak positive association in the short run. In line with this, in the long run, a one percent increase in the budget deficit causes a 1.43 percent decline in the economic growth of the country. This result is consistent with the neoclassical view which says budget deficits are bad for economic growth during stimulating periods. Moreover, in the long run, the variables trade openness and inflation have a positive impact on Ethiopian economic growth, and on the other hand, the economic growth of Ethiopia is negatively affected by the nominal exchange rate in the long run. Apart from this, in the long run, gross capital formation and lending interest rates have no significant impact on the economic growth of the country. Therefore, the study recommends the government should manage its expenditure and mobilize the resources to generate more revenue to address the negative impact of the budget deficit on economic growth.

scholarly journals ANALISIS DETERMINASI PERTUMBUHAN EKONOMI PROVINSI JAMBI

2018 ◽  
Vol 2 (1) ◽  
pp. 1
Author(s):  
Ali Fahmi
Keyword(s):  
Economic Growth ◽  
Government Spending ◽  
Capital Investment ◽  
Time Series Data ◽  
Negative Impact ◽  
Positive Impact ◽  
Least Square ◽  
Series Data ◽  
Ordinary Least Square ◽  
Investment Capital

This research aims to analyze the effect of government spending, investment of foreign capital investment, capital investment In Land and labor against growth of Jambi province during the 2004-2015. This research using Time Series data with regression analysis "Ordinary Least Square (OLS) wear EViews 8.  The findings from this research indicate that Labor become the most variable gives a positive impact against the next economic growth, government spending and investment, while investing PMDN PMA gives negative impact on The Economic Growth Of The Province Of Jambi. PMA investment posit no impact and no signikan against economic growth this is not prevalent, but it is possible the investment PMA in Jambi province is relatively small and still no impact in the absorption of the local Workforce. Menyikapai is an effort to boost the Economic growth of the Province of Jambi then needed a special business development policies should be directed at the activities that are labor-intensive to absorb labor as much as possible. Keywords: economic growth, government spending, PMA, the PMDN, and labor.

scholarly journals The Impact of Remittances on Domestic Investment in Developing Countries: Fresh Evidence From the Asia-pacific Region

2018 ◽  
Vol 9 (2) ◽  
pp. 193-211 ◽  
Author(s):  
Le Thanh Tung
Keyword(s):  
Developing Countries ◽  
Time Series Data ◽  
Negative Impact ◽  
Positive Impact ◽  
Asia Pacific ◽  
Series Data ◽  
Pacific Region ◽  
Domestic Investment ◽  
Asia Pacific Region ◽  
The Impact

Despite the sharply increasing remittances in developing countries (especially in the AsiaPacific region), the relationship between remittances and domestic investment in recipient countries has not been fluently evidenced. This paper aims to fill the empirical gap in the Asia-Pacific region by investigating the impact of remittances on domestic investment with a sample including nineteen developing countries based on time series data from 1980 to 2015. However, our findings contradict some evidence from other regions. The results robustly confirm that remittances have a negative impact on domestic investment in these countries. Our results also indicate that the annual GDP per capita growth, official development assistance, domestic credit, gross saving, and inflation have a positive impact on domestic investment, however, we conclude that the impact of trade openness on domestic investment has a negative sign in the study period. The paper also provides some policy suggestions with regard to remittance flows in this region.

scholarly journals The impact of economic growth on unemployment in South Africa: 1994 – 2012

2015 ◽  
Vol 12 (4) ◽  
pp. 699-707
Author(s):  
Handson Banda ◽  
Ireen Choga
Keyword(s):  
Economic Growth ◽  
South Africa ◽  
South African ◽  
Time Series Data ◽  
Positive Impact ◽  
Labour Productivity ◽  
Real Effective Exchange Rate ◽  
Series Data ◽  
Long Run ◽  
The Impact

One of the most pressing problems facing the South African economy is unemployment, which has been erratic over the past few years. This study examined the impact of economic growth on unemployment, using quarterly time series data for South Africa for the period 1994 to 2012.Johansen Co-integration reflected that there is stable and one significant long run relationship between unemployment and the explanatory variables that is economic growth (GDP), budget deficit (BUG), real effective exchange rate (REER) and labour productivity (LP). The study utilized Vector Error Correction Model (VECM) to determine the effects of macroeconomic variables thus REER, LP, GDP and BUG on unemployment in South Africa. The results of VECM indicated that LP has a negative long run impact on unemployment whilst GDP, BUG and REER have positive impact. The study resulted in the following policy recommendation: South African government should re-direct its spending towards activities that directly and indirectly promote creation of employment and decent jobs; a conducive environment and flexible labour market policies or legislations without impediments to employment creation should be created; and lastly government should prioritise industries that promote labour intensive. All this will help in absorbing large pools of the unemployed population thereby reducing unemployment in South Africa.

scholarly journals China–Pakistan Economic Corridor, Logistics Developments and Economic Growth in Pakistan

Logistics ◽  
2021 ◽  
Vol 5 (2) ◽  
pp. 35
Author(s):  
Zunaira Khadim ◽  
Irem Batool ◽  
Muhammad Bilal Lodhi
Keyword(s):  
Economic Growth ◽  
Time Series Data ◽  
Positive Impact ◽  
Real Income ◽  
Series Data ◽  
Data Set ◽  
Long Run ◽  
Short Run ◽  
Factor Inputs ◽  
The Impact

The study aims to analyze the impact of China–Pakistan Economic Corridor (CPEC) logistics-related developments on economic growth in Pakistan. The study defined a Cobb–Douglas type of research framework in which the country’s real income level relates to four factor inputs, e.g., employed labor force, logistics development, financial development, and energy consumption in an economy. The study utilized the time series data set for the period 1972–2018. To estimate the long run relationship and short run adjustment mechanism, the study used Johansen’s method of co-integration and error correction model. Estimated results showed that the country’s logistics developments have a significant positive impact on economic growth in both the long run and the short run. It implies that China–Pakistan collaborative efforts for logistics developments will have a strong positive impact on economic growth in Pakistan.

scholarly journals Government Size and Economic Growth in Botswana: An Application of Nonlinear Armey Curve Analysis

2018 ◽  
Vol 5 (1) ◽  
Author(s):  
Narain Sinha ◽  
Kefilwe Allister Kalayakgosi
Keyword(s):  
Economic Growth ◽  
Polynomial Regression ◽  
Negative Impact ◽  
Positive Impact ◽  
Quadratic Function ◽  
Ordinary Least Squares ◽  
Series Data ◽  
Government Size ◽  
Government Revenue ◽  
The Impact

This study has investigated the impact of government size on economic growth in Botswana using annual time series data for the period 1973 to 2012. The study adopted a framework analysis based on a quadratic function/second degree polynomial regression employed by Herath (2012). Ordinary Least Squares (OLS) method was used for the regression analysis. The results obtained are not consistent with the empirical and theoretical views as small government size has a negative impact on economic growth while a large government size has a positive impact on economic growth. The results obtained in the study were opposite to the views of most of the studies conducted. Nominal Total government expenditure is used as a measure of government size and growth of nominal GDP is used to measure economic growth. The study also employed other control variables which affect growth like government revenue as a percentage of GDP, Gross capital formation (GCF) as a percentage of GDP as proxy for investment rate and growth of paid employees as a proxy for labor force growth. The results showed that government revenue and GCF had a negative impact on economic growth but GCF was insignificant. Growth of paid employees on the other hand had a positive impact on economic growth. The study aimed at investigating the existence of the Armey curve in a developing country like Botswana. Due to government size having a negative impact on economic growth and government size squared having a positive impact on economic growth the conclusion is that the Armey curve does not exist in Botswana.

scholarly journals The Impact of Per Capita Income and Labour Absorption toward Poverty Level in Gorontalo Province

2020 ◽  
Vol 2 (1) ◽  
Author(s):  
Nelvi Oktaviani R Gobel ◽  
Sri Endang Saleh
Keyword(s):  
Capita Income ◽  
Time Series Data ◽  
Negative Impact ◽  
Positive Impact ◽  
Series Data ◽  
Per Capita Income ◽  
Poverty Level ◽  
Per Capita ◽  
The Impact ◽  
Labour Absorption

This research aims to investigate the impact of per capita income and labour absorption toward poverty level in Gorontalo Province during 2012-2017. This research uses time-series data model from secondary datasets that is obtained from Central Statistics Bureau (Badan Pusat Statistik, BPS). Main findings of this research shows that per capita income has negative impact on poverty level in Gorontalo province while labour absorption has positive impact on poverty level in Gorontalo Province. Keywords: Poverty; Per Capita Income; Labor Absorption

scholarly journals Financial Sector Innovation and Economic Growth in the Context of Botswana

2016 ◽  
Vol 8 (6) ◽  
pp. 291 ◽  
Author(s):  
Johane Moilwa Motsatsi
Keyword(s):  
Economic Growth ◽  
Rural Areas ◽  
Work Experience ◽  
Time Series Data ◽  
Positive Impact ◽  
Financial Sector ◽  
Series Data ◽  
Business Innovation ◽  
The Impact ◽  
Determinants Of Economic Growth

The objective of this study is to examine the role of financial sector development on economic growth using quarterly time series data for the period 2006-2014. We used Autoregressive Distributed Lag (ARDL) model to estimate the impact of technological innovation (Automated Teller Machines {ATMs} and Electronic Funds Transfer at Point of Sale{EFTPOS}), business innovation (bank deposits and credit to private sector) and other determinants of economic growth (inflation, trade and interest rate) on economic growth. The results show that both the technological and business innovation variables have a positive impact on economic growth. Therefore, policies aimed at promoting more distribution and nationwide spread of ATMs and EFTPOS more particularly in rural areas where they are scarce would boost the growth of the economy. In addition, The Global Competitiveness Report (GCR) asserted that Botswana’s financial market is still undeveloped and fall short to the development level of middle income countries. GCR identified the quality of the education system as the main factor dragging the development of the financial sector down. It is focused more on academic achievement rather than equipping learners with practical skills and work experience that can support the national innovative initiatives.

Sign in / Sign up

Export Citation Format

Share Document