scholarly journals Interlinkages among Terrorism, Macroeconomic Instability, Political Instability, and Economic Growth in Pakistan

2021 ◽  
Vol 7 (1) ◽  
pp. 37-62
Author(s):  
Ayesha Naz ◽  
Hafsa Jabeen ◽  
Azra Nasir
Keyword(s):  
Economic Growth ◽  
Political Instability ◽  
Positive Association ◽  
Poor Performance ◽  
Positive Influence ◽  
Gdp Per Capita ◽  
Long Run ◽  
Macroeconomic Instability ◽  
Per Capita ◽  
New Variables

This study attempts to establish the relationship between three types of instabilities and economic growth. Political instability, macroeconomic instability, terrorism, and economic growth are analyzed for the period of 1970 to 2019 in Pakistan. The study constructs the indices of the above-mentioned variables by adding some new variables. Results show that terrorism, political instability, macroeconomic instability, and GDP per capita have long-run associations. GDP per capita and political instability is positively related to terrorism. It indicates that political instable environment paves the way for terrorists to achieve their targets in Pakistan. However, the positive association of GDP per capita to terrorism is due to uneven income distribution pattern. It stimulates deprived groups to become a part of violent activities. Furthermore, results show that macroeconomic performance of a country has no significant effect on terrorist activities but persistent poor performance increases the probability of terrorism. Therefore, in the long-run, macroeconomic instability has positive influence on terrorism. Causality relationships indicate no link between political instability and macroeconomic instability. However, terrorism causes both political and macroeconomic instability in Pakistan.

scholarly journals Is the savings-led growth hypothesis valid for Zimbabwe?

2013 ◽  
Vol 10 (3) ◽  
pp. 9-13
Author(s):  
Kunofiwa Tsaurai
Keyword(s):  
Economic Growth ◽  
Positive Influence ◽  
Sustainable Growth ◽  
Gdp Per Capita ◽  
Case Study Methodology ◽  
Long Run ◽  
Domestic Savings ◽  
Study Methodology ◽  
Per Capita

This study investigates the long run relationship between economic growth and gross domestic savings for Zimbabwe during the period 1980 to 2011. The causality relationship between savings and economic growth has been a subject of extensive debate for almost half a century now. There are currently two dominant views regarding the relationship between savings and economic growth. The first view maintains that it is the growth of savings that drives economic growth. The second view argues that it is economic growth that spurs savings expansion. Using the case study methodology, the study revealed that GDP per capita had a significant positive influence on the quantity and level of gross domestic savings and not the other way round. Policies that are targeted at boosting GDP per capita should be accelerated in order to promote long-term and sustainable growth gross domestic savings for in Zimbabwe

scholarly journals Dynamic linkages between renewable energy, carbon emissions and economic growth through nonlinear ARDL approach: Evidence from Iran

PLoS ONE ◽  
2021 ◽  
Vol 16 (7) ◽  
pp. e0253464
Author(s):  
M. S. Karimi ◽  
S. Ahmad ◽  
H. Karamelikli ◽  
D. T. Dinç ◽  
Y. A. Khan ◽  
...  
Keyword(s):  
Economic Growth ◽  
Renewable Energy ◽  
Energy Consumption ◽  
Carbon Emissions ◽  
Gdp Per Capita ◽  
Bounds Testing ◽  
Renewable Energy Consumption ◽  
Economic Implications ◽  
Long Run ◽  
Per Capita

This study examines the relationship between economic growth, renewable energy consumption, and carbon emissions in Iran between 1975–2017, and the bounds testing approach to cointegration and the asymmetric method was used in this study. The results reveal that in the long run increase in renewable energy consumption and CO2 emissions causes an increase in real GDP per capita. Meanwhile, the decrease in renewable energy has the same effect, but GDP per capita reacts more strongly to the rise in renewable energy than the decline. Besides, in the long run, a reduction of CO2 emissions has an insignificant impact on GDP per capita. Furthermore, the results from asymmetric tests suggest that reducing CO2 emissions and renewable energy consumption do not have an essential role in decreasing growth in the short run. In contrast, an increase in renewable energy consumption and CO2 emissions do contribute to boosting the growth. These results may be attributable to the less renewable energy in the energy portfolio of Iran. Additionally, the coefficients on capital and labor are statistically significant, and we discuss the economic implications of the results and propose specific policy recommendations.

scholarly journals Symmetric and Asymmetric Impact of Poverty, Income Inequality, and Population on Carbon Emission in Pakistan: New Evidence From ARDL and NARDL Co-Integration

2021 ◽  
Vol 9 ◽  
Author(s):  
Salim Khan ◽  
Wang Yahong
Keyword(s):  
Economic Growth ◽  
Income Inequality ◽  
Environmental Degradation ◽  
Carbon Emissions ◽  
Carbon Emission ◽  
Policy Implications ◽  
Gdp Per Capita ◽  
Long Run ◽  
Asymmetric Impact ◽  
Per Capita

Several researchers have studied the relationship between poverty and environmental degradation, as these concerns are remained at top priority in achieving Sustainable Development Goals (SDGs). However, the symmetric and asymmetric impact of poverty and income inequality along with population and economic growth on carbon emissions (CO2e) has not been studied in the case of Pakistan. For this purpose, the short and long-run impact of poverty, income inequality, population, and GDP per capita on CO2e investigated by applying the Autoregressive Distributive Lag (ARDL) along with Non-linear Autoregressive Distributive Lag (NARDL) co-integration approach in the context of Pakistan for period 1971–2015. The symmetric results of the current study show poverty and population density along with GDP per capita increase carbon emissions in both the short and long-run, while income inequality has no impact on carbon emissions in the short-run. While in the long-run the symmetric results show that income inequality weakens environmental degradation in terms of carbon emissions. The analysis of NARDL also supports the results obtained from ARDL and suggests a positive effect of poverty, population, and economic growth on carbon emission in Pakistan. The empirical findings of the current study provide policy implications in light of the United Nation's SDGs for the development of Pakistan.

scholarly journals The Differential Impact of Financial Intermediation on Economic Growth in Oil-Dependent Economies

2018 ◽  
Vol 10 (3) ◽  
pp. 267-284
Author(s):  
Anthony Anyanwu ◽  
Christopher Gan ◽  
Baiding Hu
Keyword(s):  
Economic Growth ◽  
Panel Cointegration ◽  
Bank Credit ◽  
Gdp Per Capita ◽  
Differential Impact ◽  
Pooled Mean Group ◽  
Long Run ◽  
Panel Cointegration Test ◽  
Per Capita ◽  
The Relationship

This paper analyses the relationship between bank credit and economic growth. We extend existing literature by treating separately the oil and non-oil sectors of 28 oil-dependent economies from 1990-2012. We employ panel cointegration and pooled mean group estimation techniques which are appropriate for drawing conclusions from dynamic heterogenous panels. The results of the panel cointegration test indicate that bank credit has no significant long-run relationship with non-oil GDP per capita. The results of the pooled mean group estimator reveal no significant long-run impact of bank credit on non-oil GDP per capita. Overall results suggest that banks do not yet provide adequate credit to stimulate non-oil economic growth. The policy implication of our findings is that the financial sector should be more involved in productive investment activities to promote inclusive growth.

scholarly journals Exploring Economic Growth and Environment Nexus in Nine Southeastern European Countries

2018 ◽  
Vol 56 (2) ◽  
pp. 253-268
Author(s):  
Petar Mitić ◽  
Slobodan Cvetanović
Keyword(s):  
Economic Growth ◽  
Co2 Emissions ◽  
Renewable Energy Sources ◽  
Gdp Per Capita ◽  
Speed Of Adjustment ◽  
Long Run ◽  
Short Run ◽  
Policy Measures ◽  
Per Capita ◽  
Trading Scheme

Abstract This paper investigates the interdependence between environmental degradation (CO2 emissions) and economic growth (GDP per capita) in nine SEE countries over the period 1992 – 2016. The results of Granger causality testing indicate that in the short run there is a positive bidirectional causal relationship between CO2 emissions and GDP per capita, but in the long run, there is causality running just from GDP per capita to CO2 emissions, with the 2.0279% speed of adjustment. In pursuit of adequate policy measures, SEE countries need to work on inclusion of non-EU countries into European Union’s Emissions Trading Scheme, further developing carbon taxation policies and using renewable energy sources on a larger scale.

scholarly journals The Effects of Primary Budget Deficits on Economic Growth: Evidence from Kenya

2021 ◽  
pp. 36-52
Author(s):  
Patrick Mugendi Mugo ◽  
Wafula Masai ◽  
Kennedy Osoro
Keyword(s):  
Economic Growth ◽  
Budget Deficit ◽  
Golden Rule ◽  
Cointegration Analysis ◽  
Gdp Per Capita ◽  
Budget Deficits ◽  
Long Run ◽  
Fixed Capital Formation ◽  
Short Run ◽  
Per Capita

Aims: The paper attempts to examine the effects of primary budget deficits on economic growth. It reviews the nature and direction of causality between primary budget deficit and economic growth. In the recent years, these have been debated both in developed and developing countries. In contributing to this ongoing debate, the study analyzes the case for Kenya from 1980 to 2016. The evidence is intended to provide policy insights for macroeconomic stability and sustained  economic growth for shared prosperity in Kenya. Study Design: The study employs quantitative time-series research design by utilizing Stata econometrics software. Place and Duration of Study: Sample: Evidence from Kenya, from 1980 to 2016. Methodology: The study employs unit root tests, Johansen cointegration analysis, a dynamic vector error correction model and a multivariate Toda-Yamamoto Granger-causality representation. Results: The findings establish that the primary budget deficit, gross fixed capital formation, real interest rate, terms of trade, inflation growth and financial innovation have significant effects on GDP per capita growth in Kenya. Primary budget deficit has a strong and significant effect on GDP per capita growth both in short-run and long run. In the short-run, the results revealed that the primary budget deficit had a positive effect on economic growth which turned negative in the long-run. There was a unidirectional causality running from primary budget deficit to economic growth.  Conclusion: The study concludes that both in the short run and long run, primary budget deficit has strong and significant causal effects on economic growth in Kenya. The evidence underscores the need for the authorities to reduce high primary budget deficits, interest payments and domestic borrowings and strictly apply the golden rule of public finances to boost long term inclusive growth, in Kenya. 

L’histoire immobile? A reappraisal of French economic growth using the demand-side approach, 1280–1850

2021 ◽  
Author(s):  
Leonardo Ridolfi ◽  
Alessandro Nuvolari
Keyword(s):  
Economic Growth ◽  
Seventeenth Century ◽  
Economic Performance ◽  
Gdp Per Capita ◽  
Demand Side ◽  
French Economy ◽  
Long Run ◽  
Modern Economic Growth ◽  
Modern Economic ◽  
Per Capita

ABSTRACT We construct a new series of GDP per capita for France for the period 1280–1850 using the demand-side approach. Our estimates point to a long-run stability of the French economy with a very gradual acceleration toward modern economic growth. In comparative perspective, our new estimates suggest that England and France were characterized by similar levels of economic performance until the second half of the seventeenth century. It is only after that period that the English economy “forges ahead” in a consistent way.

scholarly journals Personal remittances, banking sector development and economic growth in Israel: A trivariate causality test

2015 ◽  
Vol 13 (1) ◽  
pp. 1014-1027
Author(s):  
Kunofiwa Tsaurai
Keyword(s):  
Economic Growth ◽  
Banking Sector ◽  
Gdp Per Capita ◽  
Series Data ◽  
Long Run ◽  
Banking Sector Development ◽  
Integration Test ◽  
Short Run ◽  
Causality Relationship ◽  
Per Capita

The current study investigates the causal relationship between personal remittances and economic growth using Israel time series data from 1975 to 2011. In a bid to contain the omission-of-variable bias not addressed in many past studies on this topic, this study included banking sector development as a third variable in the relationship between personal remittances and economic growth to create a tri-variate causality framework. Personal remittances as a ratio of GDP, domestic credit to private sector by banks as a ratio of GDP and GDP per capita were used as proxies for personal remittances, banking sector development and economic growth respectively for the purposes of this study. It used the Johansen co-integration test to examine the existence of the long run relationship and vector error correction model (VECM) to determine the direction of causality between personal remittances, banking sector development and economic growth both in the long and short run. The findings reveal that: (1) there is a significant long run causality relationship running from GDP per capita and banking sector development towards personal remittances, (2) there is an insignificant long run causality relationship running from personal remittances and GDP per capita towards banking sector development, (3) there is no long run causality relationship running from personal remittances and banking sector development towards GDP per capita and there is no short run causality relationship between the three variables that were under study in Israel. The author therefore recommends the authorities of Israel to speed up the implementation of banking sector development and economic growth programmes in order to increase the quantity of personal remittances inflows

scholarly journals Seven Centuries of European Economic Growth and Decline

2015 ◽  
Vol 29 (4) ◽  
pp. 227-244 ◽  
Author(s):  
Roger Fouquet ◽  
Stephen Broadberry
Keyword(s):  
Economic Growth ◽  
Nineteenth Century ◽  
Economic Development ◽  
Industrial Revolution ◽  
Gdp Per Capita ◽  
Economic Decline ◽  
European Economic ◽  
Long Run ◽  
Per Capita ◽  
European Economies

This paper investigates very long-run preindustrial economic development. New annual GDP per capita data for six European countries over the last seven hundred years paint a clearer picture of the history of European economic development. We confirm that sustained growth has been a recent phenomenon, but reject the argument that there was no long-run growth in living standards before the Industrial Revolution. Instead, the evidence demonstrates the existence of numerous periods of economic growth before the nineteenth century—periods of unsustained, but raising GDP per capita. We also show that many of the economies experienced substantial economic decline. Thus, rather than being stagnant, pre-nineteenth century European economies experienced a great deal of change. Finally, we offer some evidence that, from the nineteenth century, these economies increased the likelihood of being in a phase of economic growth and reduced the risk of being in a phase of economic decline.

scholarly journals The Relationship Between Education Outputs, Education Expenditure, and Economic Growth in Saudi Arabia

2021 ◽  
Vol 12 (2) ◽  
pp. 320
Author(s):  
Benlaria Houcine ◽  
Messen Kerroumia ◽  
Emad Abdel Khalek Saber El-Tahan ◽  
Tarig Osman Abdallah Helal
Keyword(s):  
Economic Growth ◽  
Saudi Arabia ◽  
Gdp Per Capita ◽  
Education Expenditure ◽  
Distributed Lag ◽  
Long Run ◽  
Per Capita ◽  
Economic Growth Rates ◽  
The Relationship

The present study investigated the relationship between education outputs, Education expenditure, and economic growth in Saudi Arabia for the time period of 1986–2016. The results obtained after employing the Autoregressive Distributed Lag (ARDL) model revealed a long-term relationship between the studied variables, an inverse relationship between the number of graduates and growth in the long term, whereas a non-significant positive relationship appeared in the short -term. Findings indicate also that public spending in education has a positive and significant impact on economic growth in the long run. Furthermore, he observed that a 1% increase in public expenditure in education contributes 18% increase in GDP per capita in the long run. This is in line with economic theory and previous research showing that expenditure on education leads to a rise in GDP per capita and economic growth rates. The recommendations of this study are fundamental to the Kingdom of Saudi Arabia.

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