scholarly journals Impact Assessment of Agriculture and Manufacturing Sectors on economic Growth in Nigeria.

2021 ◽  
Vol 04 (10) ◽  
Author(s):  
Atayi Abraham Vincent ◽  
Keyword(s):  
Economic Growth ◽  
Granger Causality ◽  
Percent Level ◽  
Value Added ◽  
Least Square ◽  
Coefficient Of Determination ◽  
Positive Sign ◽  
Series Data ◽  
Agricultural Output ◽  
The Impact

This study tried to investigate the impact of agriculture and manufacturing on economic growth using time series data from (1987-2019). To analyze the link between the variables, the researchers utilized the ADF to test for stationarity, the Ordinary Least Square Method, the Error Correction Model, and the Granger Causality Test. The result shows that, the coefficient of agricultural output has a positive sign, indicating a favorable association. The AGRQ coefficient is (0.045142), implying that a 5% change in AGRQ will result in a 5% change in Manufacturing Value Added. At the 0.05 percent level, the finding is statistically significant, with a probability of (0.0000). The coefficient of determination R-Squared (R2) is 0.817974, indicating that variations in the explanatory variables account for nearly 82 percent of the variation in Manufacturing Value Added. The ECM's coefficient (-1) is (0.619202). The coefficient indicates that the short run adjustment annually offsets 62% of the system's disequilibrium in order to restore long-run equilibrium. This means that the system will reach equilibrium at a 62 percent rate the following year. At the 5% level of significance, Granger causality demonstrates that there is no causal link between Manufacturing Value Added and Real Gross Domestic Product. However, manufacturing value-added and agricultural output have a one-way relationship. The study recommends that government must urgently expand the Nigerian agricultural sector by allocating more financing to the industry and ensuring that the funds are used wisely and to further support increased industrial productivity and expansion, the government should work to strengthen its incentives to the manufacturing sector.

scholarly journals Potential Tax Reforms and Kuwait Economic Growth

2019 ◽  
pp. 42-48
Author(s):  
K. Lawler ◽  
F. Ali Al-Sayegh
Keyword(s):  
Economic Growth ◽  
Time Series Data ◽  
Value Added ◽  
Least Square ◽  
Series Data ◽  
Tax Reforms ◽  
Tax Revenues ◽  
Oil Revenue ◽  
The Impact

The objective of this study is to identify whether tax reforms are viable in Kuwait in order to create more government income from sources other than oil. The study examines the relationship between the changes in tax revenues, changes in oil revenue and changes in GDP in Kuwait using time series data from 1998 to 2015. The Augmented Dickey-Fuller (ADF) is used to check for the existence of a unit root. The cointegration test is applied to test for long term relationships between variables using the General Least Square (GLS) method of estimation. The results of the tests find that the impact of changes in tax revenues on changes in the GDP of Kuwait is insignificant. Therefore, Kuwait’s government could rationally implement tax reforms to have incremental sources of income other than oil revenue. Moreover, it is argued that the government might consider implementing broad based consumption taxes and value added taxes into the tax structure Kuwait, and to invest the revenues from those taxes in productive policies, to induce long term economic growth.

scholarly journals Impact of Domestic Public Debt on Economic Growth - An Empirical Study in the Indian Context

2016 ◽  
Vol 6 (4) ◽  
pp. 101-116
Author(s):  
Srinivasa Rao Gangadharan ◽  
Lakshmi Padmakumari
Keyword(s):  
Economic Growth ◽  
Granger Causality ◽  
Positive Impact ◽  
Least Square ◽  
Distributed Lag ◽  
Long Run ◽  
Domestic Debt ◽  
Integration Test ◽  
Ordinary Least Square Regression ◽  
The Impact

This study is an empirical investigation to assess the impact of domestic debt on India’s Economic growth during the period 1980 – 2014. We use data on Domestic Debt, Net Fiscal Deficit, Exports, Savings, Real Gross Domestic Product, Population and Terms of Trade. This study adopts the ARDL Co-Integration and Granger Causality techniques to investigate the relation between the key variables. The study also employs various post estimation tests to validate the fitness and stability of the models based on Gauss Markov assumptions, after employing the ordinary least square regression on various models. We find that debt negatively impacts economic growth while savings has a positive impact. The Auto Regressive Distributed Lag (ARDL) technique used to test the robustness suggests existence of co-integration among the variables. However, none of the long run co-efficient is significant. The granger causality and co-integration test results support the traditional view that debt negatively impacts economic growth.

scholarly journals Comparison of the impact of lending and inflation rates on economic growth in Vietnam and China

2020 ◽  
Vol 15 (4) ◽  
pp. 193-203
Author(s):  
Doan Van Dinh
Keyword(s):  
Economic Growth ◽  
Monetary Policy ◽  
Time Series Data ◽  
Close Correlation ◽  
Least Square ◽  
Series Data ◽  
Lending Rate ◽  
Lending Rates ◽  
The Impact

Inflation and lending rates are two important macroeconomic indicators as they affect economic growth. The correlation between the inflation rate and the lending rate in Vietnam and China is analyzed to determine whether the lending rate causes inflation or not. An ordinary least square model (OLS) and a unit root test are applied to check the correlation and cointegration related to the inflation and lending rates to avoid spurious regression. The research time series data were collected from 1996 to 2017. The correlation of Vietnam’s variables is 56%, the correlation of China’s variables is 55%, which is a close correlation. The empirical cointegration test results for Vietnam and China are suitable for two research models. The relationship between these two indicators influences each other. In the short term, inflation stimulates economic growth through loose monetary policy through the lending rate. However, in the long term, if the money supply increases continuously, inflation will slow economic growth and increase bad debt. The empirical results are to make accurate forecasts and determine monetary policy for micro-managers who set the goal of sustainable economic growth and have a strategy for economic development in the short and long term.

The Impact of Foreign Direct Investment (FDI) on Economic Growth (EG) : Evidence from Djibouti

2021 ◽  
Vol 9 (10) ◽  
pp. 701-706
Author(s):  
Nashwa Maguid Hayel
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
International Development ◽  
Direct Investment ◽  
Time Series Data ◽  
Developed Countries ◽  
Least Square ◽  
Series Data ◽  
Study Results ◽  
The Impact

Abstract: The achievement of EG and development is considered the core objective for both Developing Countires (DCs) and Least Developed Countries (LDCs), so countries try to get adequate funding to achieve this goal through optimal macroeconomic policies and different strategies. Countries prefer other mechanisms with less burden and cost to achieve economic growth, such as FDI flows. International development-oriented institutions such as WB and IMF recommend and consider FDI flows are the most important factors of the modern technology transfer, management, and know-how, which is necessarily needed in the local investment projects in poor countries, so FDI represents optimal external sources of growth. The objective of this study is to explain the impact of FDI on the EG of Djibouti. To achieve this objective the study used a secondary annual time series data for the period 1985-2019 by the method of Ordinary Least Square (OLS). The study results showed that FDI in the case of Djibouti tends to be statistically insignificant effects and a limited impact on Djibouti‘s EG, Moreover,other factors such as the Human Development Index(HDI), and Gross Fixed Capital Formation(GFCF), Trade Openness(TOP) shows significant effects on the Gross Domestic Product (GDP). Finally, the Consumer Price Index (CPI) has no significance in the EG of Djibouti. The findings provide critical information to Djibouti policy decision-makers to make an informed decision with regard to attracting investment sectors and policies in encouraging foreign investors to invest in the country. KEYWORDS: Foreign Direct Investment, Economic Growth, Djibouti, Empirical Analysis.

scholarly journals Impact of Capital Market on Domestic Resource Mobilization for Economic Development in Nigeria (2000-2015)

2016 ◽  
Vol 3 (1) ◽  
pp. 1
Author(s):  
Agu, B. O. ◽  
Nwankwo, S. N. P. ◽  
Onwuka, I. O.
Keyword(s):  
Economic Development ◽  
Capital Market ◽  
Percent Level ◽  
Resource Mobilization ◽  
Least Square ◽  
Series Data ◽  
Market Capitalization ◽  
Integration Test ◽  
The Impact ◽  
Domestic Resource

<p><em>The</em><em> </em><em>study investigated the impact of Nigerian capital market on domestic resource mobilization for economic development,</em><em> </em><em>using time series data from 2000 to 2015. The study employed secondary data obtained from the Central Bank of Nigeria Statistical Bulletin, the Nigerian Stock Exchange Fact Book and Securities and Exchange Commission database. To evaluate the impact of the independent variables on the dependent, the Ordinary Least Square (OLS) method of estimation was employed. Augmented Dickey Fuller (ADF)</em><em> </em><em>test was used to identify the order of integration. Economic growth was proxied by Gross Domestic Product (GDP) while the capital market variables considered include: Market Capitalization (MCAP), Total New Issues (TNI) and Value of Transactions (VLT).</em><em> </em><em>Applying Johansen and Juselius co-integration test, the result showed that there was at most one co-integrating equation in the model, implying that there is a long run relationship between the variables in the model. The causality test results suggest bidirectional causation between the GDP and the Value of Transactions (VLT) and to the GDP but not vice-versa. Using two-tailed test, the F-statistics is significant at 5 percent level of significance. Furthermore, there was no evidence of reverse causation from GDP to market capitalization and there was no evidence of independence causation between the GDP and Total New Issues (TNI).</em><em> </em><em>The study showed that the major problem with domestic resource mobilization in Nigeria have been that not enough savings are being generated to facilitate the required investment. Also, the type of savings available does not easily make financial intermediation possible. The Nigerian stock market has been constrained by policies that tend to make the exchange look like a mechanism by which government raise loan finance rather than an instrument for mobilizing industrial finance. It is recommended therefore that the regulatory authority should appraise and modify the restrictive policies that constrained resource mobilization capacity of the Nigerian capital market.</em></p>

scholarly journals THE IMPACT OF COVID-19 PANDEMIC ON THE TOURISM SECTOR IN INDONESIA

Riset ◽  
2021 ◽  
Vol 3 (1) ◽  
pp. 389-401
Author(s):  
Jan Horas Veryady Purba ◽  
Ritha Fathiah ◽  
Steven Steven
Keyword(s):  
Economic Growth ◽  
Time Series Data ◽  
Secondary Data ◽  
Equation Model ◽  
Least Square ◽  
Series Data ◽  
Tourism Sector ◽  
Before And After ◽  
Negative Effect ◽  
The Impact

The tourism is one of the strategic sectors and has an important role as a source of foreign exchange and encourages national economic growth. Since March 2020, the Covid-19 pandemic has begun to enter Indonesia, and the cumulative infection curve has not sloped, and is still increasing exponentially until now. This phenomenon has resulted in a contraction in the Indonesian economy or created negative economic growth, as well as creating very bad conditions for the tourism sector in Indonesia. This study aims to examine the influence of the Covid-19 pandemic on tourism and its implications for economic growth in Indonesia. The data used are quarterly time series data before and after the Covid-19 Pandemic (2018-2020). This study uses a regression equation model that is estimated by using ordinary least square (OLS). Secondary data used are data air transport and hotel accommodation, as a proxy for tourism variables. The results show that the Covid-19 Pandemic has a negative effect on Indonesian tourism, and has negative implications for Indonesia's GDP. From the simulation results, the findings of this study also calculate the amount of potential lost in the Turism and Indonesian economy during the Covid-19 Pandemic.

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 Fiscal policy and growth in a small emerging economy: The case of Bulgaria

2020 ◽  
Vol 42 (4) ◽  
pp. 386-402
Author(s):  
Desislava Stoilova ◽  
Nikolay Patonov
Keyword(s):  
Economic Growth ◽  
Fiscal Policy ◽  
Government Spending ◽  
Emerging Market ◽  
Value Added ◽  
Series Data ◽  
Current Account Balance ◽  
Negative Effect ◽  
Investment Spending ◽  
The Impact

AbstractThe purpose of this article is to study the impact of fiscal policy on economic growth in Bulgaria for the period 1995–2018. The descriptive analysis is focused on the general trends in fiscal policy and tax structure. The influence of government spending and taxation on economic growth is studied through regressions on time-series data. The empirical estimates prove that taxation is a more reliable instrument of fiscal policy than government spending in terms of a small open emerging-market economy. The dilution of the effect of public spending is probably caused by the high negative values of the current account balance that have been maintained for long periods. Thus, when domestic supply is weak, government expenditure cannot stimulate domestic production, as supply is dominated by import goods. Public investments demonstrate a negative effect on economic growth, which suggests a low productivity of investment spending. A factor of great importance is the level of corruption, which is strongly correlated with government investments, but is harmful to their efficiency. The Bulgarian tax system demonstrates consistency with economic growth. The receipts from value-added tax seems growth-conductive. The decrease of the corporate income tax rate exerts a positive impact on economc performance during the analyzed period, while personal income taxation demonstrates a negative effect. Property taxation has no significant relation with the growth of the Bulgarian economy.

scholarly journals FDI, ECONOMIC FREEDOM AND ECONOMIC GROWTH OF NIGERIA

2021 ◽  
Vol 2 (2) ◽  
pp. 01-16
Author(s):  
J.O. Sekunmade
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Regression Analysis ◽  
Granger Causality ◽  
Direct Investment ◽  
Economic Freedom ◽  
Test Method ◽  
Series Data ◽  
Vector Autoregressive ◽  
The Impact

This paper investigates Foreign Direct Investment, Economic Freedom and Economic Growth of Nigeria between 1995 and 2018. Specifically, the data on: Foreign Direct Investment (FDI) inflows, Economic Freedom (Aggregate index) and the data on real gross domestic product (RGDP) were used during the analysis. Time-series data were tested for stationarity using the Augmented Dickey-Fuller Unit Root test method. Vector Autoregressive (VAR) estimation method was adopted to examine the effect of FDI, Economic Freedom on Economic growth. The interactive effect of FDI and Economic Freedom on Economic growth was determined using regression analysis while Granger Causality test method was adopted for determining the causality relationship among the variables. The result of the Vector Autoregressive (VAR) suggests that both FDI and Economic freedom do not have a significant effect on economic growth in Nigeria. The result of regression analysis shows that the joint coefficient of both FDI and EF is negative and not significant. The result of Granger Causality revealed that there is a uni-directional relationship between RGDP and FDI and between EF and FDI respectively. The research recommends that the federal government of Nigeria should adopt appropriate foreign trade strategies to enhance the impact of FDI on economic growth in Nigeria.

scholarly journals The Impact of Foreign Direct Investment (FDI) on Economic Growth (EG): Evidence from Djibouti

2021 ◽  
Vol 9 (2) ◽  
pp. 64
Author(s):  
Nashwa Maguid Hayel ◽  
Bouchra Es. Saiydy
Keyword(s):  
Economic Growth ◽  
International Development ◽  
Time Series Data ◽  
Developed Countries ◽  
Modern Technology ◽  
Least Square ◽  
Series Data ◽  
Least Developed Countries ◽  
Study Results ◽  
The Impact

The achievement of EG and development is considered the core objective for both Developing Countires (DCs) and Least Developed Countries (LDCs), so countries try to get adequate funding to achieve this goal through optimal macroeconomic policies and different strategies. Countries prefer other mechanisms with less burden and cost to achieve economic growth, such as FDI flows. International development-oriented institutions such as WB and IMF recommend and consider FDI flows as the most important factors of the modern technology transfer, management, and know-how, which is necessarily needed in the local investment projects in poor countries, Therefore FDI represents optimal external sources of growth.The objective of this study is to explain the impact of FDI on the EG of Djibouti. To achieve this objective the study used a secondary annual time series data for the period 1985-2019 by the method of Ordinary Least Square (OLS).The study results showed that FDI in the case of Djibouti tends to be statistically insignificant effects on Djibouti‘s EG; on the other hand other factors such as the Human Development Index (HDI) and Gross Fixed Capital Formation (GFCF), Trade Openness (TOP) shows significant effects on the Gross Domestic Product (GDP). Finally, the Consumer Price Index (CPI) has no significance in the EG of Djibouti.The findings provide critical information to Djibouti policy decision-makers to make an informed decision with regard to attracting investment and policies in encouraging foreign investors to invest in the country.

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