scholarly journals A Quantitative Assessment of the Role of the Private Sector in Economic Diversification in UAE

2019 ◽  
Vol 11 (4) ◽  
pp. 23
Author(s):  
Radwa Radwan Said
Keyword(s):  
Private Sector ◽  
United Arab Emirates ◽  
Negative Impact ◽  
Positive Impact ◽  
Trade Openness ◽  
Economic Diversification ◽  
Long Run ◽  
Domestic Credit ◽  
Short Run ◽  
The Government

The United Arab Emirates (UAE) has often been addressed as a success case in the GCC region due to its implemented policies that spurred growth and development with a market-friendly approach. This study aims to investigate the relationship between economic diversification and private sector development. For this, we employed an ARDL con-integration method to check the long run as well as short run relationship between variables. We found that the domestic credit to private sector has a positive relationship with diversification index. Also, domestic credit to private sector (DCPS) percentage of GDP has both short and long run relationship with economic diversification index. The results indicate that the domestic credit to private sector will promote the economic diversification in both the short and long runs. Moreover, the government infrastructure will also promote economic diversification in the long run but not in the short run. The trade openness has a negative impact on economic diversification in the long run, but it has a positive impact in the short run.

scholarly journals Finance–Growth Nexus in Nepal: An Application of the ARDL Approach in the Presence of Structural Breaks

2018 ◽  
Vol 43 (4) ◽  
pp. 236-249 ◽  
Author(s):  
Jagadish Prasad Bist ◽  
Nar Bahadur Bista
Keyword(s):  
Economic Growth ◽  
Financial Development ◽  
Structural Breaks ◽  
Negative Impact ◽  
Positive Impact ◽  
Trade Openness ◽  
Trade Deficit ◽  
Investment Policies ◽  
Long Run ◽  
Short Run

Executive Summary A healthy financial system is important for the growth process of an economy. It affects growth by influencing the saving, investment and technological innovations. In fact, researchers argue that low-income countries like Nepal need a much more robust and active financial system when compared to the developed world. Therefore, this study examines the relationship between financial development and economic growth using annual time series data for Nepal during the period 1984–2014. Because Nepal has a bank-based economy, the study used credit issued by banking and financial institutions to the private sector as the proxy for financial development. The economic growth has been measured using real gross domestic product (GDP) growth and real GDP per capita growth (constant 2005 US$). The autoregressive distributed lag (ARDL) bounds testing approach is used to investigate the cointegration among variables in the presence of structural breaks. The study used Zivot and Andrews’ (ZA) unit root test in order to find the structural breaks in the variables. The study finds that the structural change in private credit took place in 2007 when the government of Nepal and Maoists (the then rebels) signed a Comprehensive Peace Agreement and the Maoist rebels joined the interim government, which formally ended the 10 years long civil war in Nepal. Similarly, the study observes break points in real GDP growth and per capita growth in 2001 when the Royal Massacre and a state of emergency took place in Nepal. After allowing for structural breaks, the study finds evidence of a cointegration relationship between financial development and economic growth when economic growth is used as the dependent variable. Thus, it can be argued that the long-run causality is unidirectional from financial development to economic growth in Nepal. The estimates of the ARDL approach suggest that financial development has a significant positive impact on economic growth in both long run and short run. However, the estimates show that gross domestic saving, a control variable, has a negative impact on economic growth in Nepal. It clearly indicates that Nepal has long not been able to utilize the savings in the productive sector. The political instability, poor investment policies and securities and hence the lack of foreign investment and lack of technological innovations could be the causes for Nepal not benefiting from the country’s savings. It is also found that trade openness has a negative relationship with economic growth in the long run: possibly the cause of the persistent trade deficit of Nepal with the rest of the world. However, in the short run, the result shows a positive relationship between trade openness and growth. In fact, it is found that the magnitude of the positive impact of trade openness in the short run is higher than the magnitude of its negative impact in the long run. Thus, the policymakers should give more emphasis on trade and investment policies that could reduce the prolonged trade deficit and help the nation in getting long-term benefits from international trade.

scholarly journals FINANCIAL CRISES AND ECONOMIC GROWTH OF NIGERIA

2021 ◽  
Vol 8 (1) ◽  
pp. 13-33
Author(s):  
Ogbebor Peter ◽  
◽  
Awonuga Adesola ◽  
Ezenwa Anthony ◽  
Oamen Gregory ◽  
...  
Keyword(s):  
Economic Growth ◽  
Financial Crises ◽  
Time Series Data ◽  
Positive Impact ◽  
Trade Openness ◽  
Series Data ◽  
Distributed Lag ◽  
Long Run ◽  
Short Run ◽  
The Government

The effects of financial crises on economic growth of countries are destabilizing and research interests in this area in the case of Nigeria has not be sufficiently exhibited, hence, this study. The study examined the effect of financial crises on economic growth in Nigeria using time series data that covered a period from 1986 to 2019. For data analysis, the major empirical tools utilized are Autoregressive Distributed Lag (ARDL) Co-integration and ECM techniques, following the result of the unit root tests that revealed mixture of I(0) and I(1). The ARDL Co-integration result revealed that long run relationship exists among the selected variables of interest in this study. Furthermore, ECM technique revealed that Financial Crises have negative and significant effect on Economic growth in Nigeria both in the long run and short run. Also, the effect of current value of Inflation was found to be negative and significant in the long run and that of Trade openness was positive and statistically significant in the short run. Also, the study found that there are long run and short run positive and significant impacts of Liberalization on Economic growth. Finally, the findings revealed that the current year values of Money Supply have negative and significant impact on current Economic growth; however, its past value has positive impact. The study concluded that a long-run relationship existed between financial crises and economic growth; specifically, such crises have negative and significant effects on economic growth of Nigeria. The government in general should tinker with the current policy prescription regarding the establishment of financial institutions especially those that cannot qualify for the status of domestically systematically important to avert recurring crises in the financial sector that have impacted the macro-economy negatively.

THE IMPACT OF RESEARCH AND DEVELOPMENT INVESTMENT ON AGRICULTURAL SECTOR PERFOMANCE IN KENYA

2017 ◽  
Vol 2 (1) ◽  
pp. 34-57
Author(s):  
John Githii Kimani ◽  
Dr. George Ruigu Ruigu
Keyword(s):  
Research And Development ◽  
Agricultural Sector ◽  
Research Policy ◽  
Trade Openness ◽  
Policy And Practice ◽  
Long Run ◽  
Short Run ◽  
The Government ◽  
Parsimonious Model ◽  
The Impact

Purpose: The purpose of the study was to assess the impact of research and development investment/expenditure on the agricultural sector performance in Kenya.Methodology: The study took the peoples impact assessment direction. The data for this study was collected from various government agencies such as KARI, ASTI, Kenya Agricultural Sector Data compendium website, FAOSTAT, World Bank among others. Co-integration and error correction modeling methods were used in analyzing the data for this study.Results: Co-integration results for both the parsimonious and non-parsimonious model indicated that that there is a long-run relationship among the variables in the agriculture performance in Kenya. Further, findings in this study indicated that the variables under study were insignificant determinants of the long run Total Factor Productivity of the agricultural sector.  Meanwhile, Trade openness was the only significant determinant of the short run agricultural Total Factor Productivity.Unique Contribution to Policy and Practice: This study recommends the institutionalization of policies aimed at ensuring interaction between the various stakeholders in the agricultural sectors. This interaction will ensure that resources are better allocated to reduce duplication of research and dissemination activities. In addition, greater collaboration among the stakeholders will promote and strengthen the connection between research, policy and the application of research findings. The study further advocates that the government should follow a trade liberazation oriented approach to the agricultural sector as opposed to a trade tightening approach.

scholarly journals Role of Information and Communication Technology, Foreign Direct Investment and Trade Openness in Environmental Sustainability

2021 ◽  
Vol 7 (2) ◽  
pp. 263-272
Author(s):  
Sulaman Hafeez Siddiqui ◽  
Sohail Saeed ◽  
Areeba Khan ◽  
Hina Bhatti
Keyword(s):  
Co2 Emissions ◽  
Information And Communication Technologies ◽  
Environmental Sustainability ◽  
Trade Openness ◽  
Communication Technologies ◽  
Fdi Inflows ◽  
Long Run ◽  
Short Run ◽  
Information And Communication ◽  
The Government

Purpose: The benefits of Information and Communication Technologies (ICTs) in environmental resource management has been a topic of hot discussion for the policymakers across the world.  For the purpose, the government of Pakistan took initiative in 2018 to use technology for the country’s social welfare, financial benefits and to enhance environmental sustainability and named it as “Digital Pakistan Initiative”.Design/Methodology/Approach: For analysis, this study took CO2 emissions as the dependent variable and ICT, FDI inflows, and Trade Openness as independent variables. Data were collected on bimonthly basis from 2004 through 2019, and analyzed employing ARDL approach. Main purpose of the study was to examine the short-run and long-run relationship among carbon emissions and ICT, FDI Inflows and Trade Openness.Findings: The findings show that there exists a short-run relationship among all the variables; however, FDI inflows and trade openness have a significant relationship with CO2 emissions. The results also exhibit that there is no long-run relationship between CO2 emissions, FDI inflows, and Trade openness while ICT has an insignificant long-run relationship with CO2 emissions. With the increase of information and communication, the country’s environmental sustainability is also increased. Implications/Originality/Value: The current study was based on least considered variables and the pioneer in testing the complex relationship through VAR estimation.

scholarly journals ANALISIS PENGARUH REMITANSI, INVESTASI ASING LANGSUNG, IMPOR DAN PERTUMBUHAN EKONOMI DI INDONESIA

2020 ◽  
Vol 2 (4) ◽  
Author(s):  
Regina Septriani Putri ◽  
Ariusni Ariusni
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
Time Series Data ◽  
Positive Impact ◽  
Series Data ◽  
Long Run ◽  
Short Run ◽  
The Government ◽  
Positive Effect

Abstract : This study examined and analysis the effect of remittances, foreigndirect investment, imports, and economic growth in Indonesia in the long run andshort run. This study using Error Correction Model (ECM) method and using theannual time series data from 1989 to 2018. This study found that: (1) remittancehave an insignificant positive effect on economic growth in the long run and shortrun,(2)foreign direct investment have a significant positive impact on economicgrowth in the long run and short run, (3) import have an insignificant positiveimpact on economic growth both in the long run and short run. To increase theeconomic growth in the future, this study suggests the government to decresingimports of consume goods and increasing the inflow of capital goods, rawmaterial goods, remittances and foreign direct investment.Keyword : Remittance, Foreign Direct Investment, Import, Economic Growth andECM

Does transportation infrastructure impact economic growth in India?

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Sreenu Nenavath
Keyword(s):  
Economic Growth ◽  
Economic Development ◽  
Positive Impact ◽  
Transport Infrastructure ◽  
Causality Test ◽  
Content Type ◽  
Long Run ◽  
Short Run ◽  
The Government ◽  
Determinants Of Economic Growth

Purpose This paper aims to show a long run and causal association between economic growth and transport infrastructure. Design/methodology/approach In this study, the authors use ARDL models through the period 1990 – 2020 to investigate the relationship between transport infrastructure and economic growth in India. Findings The infrastructure has a positive impact on economic growth in India for the long run. Moreover, Granger causality test demonstrates a unidirectional relationship between transport infrastructure to economic development. Stimulatingly, the paper highlights the effect of air infrastructure statistically insignificant on economic growth in the long and short-run period. Originality/value The original outcome from the study delivers an inclusive depiction of determinants of economic growth from transport infrastructure in India, and these findings will help the policymakers to frame policies to improve the transport infrastructure. Hence, it is proposed that the government of Indian should focus more to upsurge the transport infrastructure for higher economic development.

The effectiveness of government expenditure on economic growth in Botswana

2019 ◽  
Vol 10 (3) ◽  
pp. 368-384 ◽  
Author(s):  
Kafayat Amusa ◽  
Mutiu Abimbola Oyinlola
Keyword(s):  
Economic Growth ◽  
Government Spending ◽  
Negative Impact ◽  
Positive Impact ◽  
Government Expenditure ◽  
Public Spending ◽  
Empirical Literature ◽  
Content Type ◽  
Long Run ◽  
Short Run

Purpose The purpose of this paper is to examine the relationship between government expenditure and economic growth in Botswana over the period 1985‒2016. The study employed the auto-regressive distributed lag (ARDL) bounds testing approach in investigating the nexus. The study makes the argument that the effectiveness of public spending should be assessed not only against the amount of the expenditure but also by the type of the expenditure. The empirical findings showed that aggregate expenditure has a negative short-run and positive long-run effect on economic growth. When expenditure is disaggregated, both forms of expenditures have a positive short-run effect on economic growth, whereas only a long-run positive impact of recurrent expenditure is observed. The study suggests the need to prioritize scarce resources in productive recurrent and development spending that enables increased productivity. Design/methodology/approach This study examined the effectiveness of government spending in Botswana, within an ARDL framework from 1985 to 2016. To achieve this, the analysis is carried out on both an aggregate and disaggregated level. Government spending is divided into recurrent and development expenditures. Findings This study examined the effectiveness of government spending in Botswana, within an ARDL framework from 1985 to 2016. To achieve this, the analysis hinged on both the aggregate and disaggregated levels. The results of the aggregate analysis suggest that total public expenditure has a negative impact on economic growth in the short run; however, its impact becomes positive over the long run. On disaggregating government spending, the results show that both recurrent and development expenditures have a significant positive short-run impact on growth; however, in the long run, the significant positive impact is only observed for recurrent expenditure. Practical implications The results provide evidence of the diverse effects of government expenditure in the country. In the period under investigation, 73 percent of total government expenditure in Botswana was recurrent in nature, whereas 23 percent was related to development. From the results, it can be observed that although the recurrent expenditure has contributed to increased growth and must be encouraged, it is also pertinent for the Botswana Government to endeavor to place more emphasis on productive development expenditure in order to enhance short- and long-term growth. Further, there is a need to strengthen the growth-enhancing structures and to prioritize the scarce economic resources toward productive spending and ensuring continued proper governance over such expenditures. Originality/value The study provides empirical evidence on the effectiveness of government spending in a small open, resource-reliant middle-income SSA economy and argues that the effectiveness of public spending must be assessed not only against the amount of the expenditure but also on the type or composition of the expenditure. The study contributes to the scant empirical literature on Botswana by employing the ARDL approach to cointegration technique in estimating the long- and short-run impact of government expenditure on economic growth between 1985 and 2016.

Abu Dhabi's state-fuelled private sector may stagnate

2017 ◽  
Keyword(s):  
Private Sector ◽  
United Arab Emirates ◽  
Oil Price ◽  
Abu Dhabi ◽  
Economic Diversification ◽  
Content Type ◽  
Second Best ◽  
Investment Companies ◽  
The Government

Significance Major banks and investment companies have also announced planned mergers in 2016-17. The Ipsos City Index in July named Abu Dhabi the second-best place to live and work, overtaking Paris and London. On the ground, however, the oil-price driven slowdown is finally starting to hit residents hard. Impacts The government will increase its emphasis on economic diversification, although this will be a difficult task. Loss-making state airline Etihad is likely to face another restructuring. Abu Dhabi’s vast reserves will enable it to retain its position as leader of the United Arab Emirates (UAE).

scholarly journals Trade Openness And Inflation: Empirical Explanation Of The Nexus In Nigeria

2019 ◽  
Vol 1 (2) ◽  
pp. 35-45
Author(s):  
Musa Abdullahi Sakanko ◽  
David Joseph
Keyword(s):  
Inflation Rate ◽  
Time Series Data ◽  
Trade Openness ◽  
Consumer Price Index ◽  
Negative Relationship ◽  
Series Data ◽  
Secondary Sources ◽  
Long Run ◽  
Short Run ◽  
The Government

Purpose of the study: The study aims is to examine the effect of trade openness on inflation rate in Nigeria. Methodology: Time series data were collected from secondary sources.  EViews10 (statistical software for data analysis) ware employed to analyze the data collected. Findings: The results revealed a cointegrating and one-way Granger causality between inflation rate, and trade openness. In addition, both the short-run and the long-run results demonstrate a significant and negative relationship between inflation rate and trade openness in Nigeria. Application: The study is paramount to the government and policymakers in dealing and taking a decision regarding consumer price index and trade openness in Nigeria. We conclude that the government should work towards full diversification and diversion of the economy from oil export, control, and management of the degree of trade liberalization and the extent to which goods enter the country, and the control of money supplied. Novelty/Originality: The study accorded to debate on the inflation rate, and trade openness in Nigeria looking, at both short-run and long-run effects, before few accessible studies focused on impact, and trade openness was not measured as the value of net export divided by gross domestic product. Finally, the paper contributed to the scanty of the literature.

scholarly journals Asymmetric Relationships Between Information and Communication Technology (ICT), Globalization, and Human Development in India: Evidence From Non-Linear ARDL Analysis

2021 ◽  
Author(s):  
Jayanti Behera ◽  
Dukhabandhu Sahoo
Keyword(s):  
Human Development ◽  
Global Financial Crisis ◽  
Negative Impact ◽  
Positive Impact ◽  
Jel Classification ◽  
Annual Data ◽  
Long Run ◽  
Non Linear ◽  
Short Run ◽  
Asymmetric Relationships

Abstract The objective of the paper is to examine the asymmetric relationships between ICT, globalization, and human development in India by analyzing the annual data from 1991 to 2019 through the non-linear autoregressive distributed lag (NARDL) model. The result shows that positive and negative changes in globalization lead to a decline in human development in the long run, consistent with the literature. Further, a positive change in mobile density increases human development in the long run. A decline in internet density has a positive impact on human development in the long run, and it needs further investigation. In the short run, a positive shock in globalization with one lag has a positive impact on human development. Moreover, a previous year positive and negative shocks in internet density have a positive effect on human development while the previous two years positive and negative shocks in internet density have a negative effect on human development in the short run. It is also found that the global financial crisis 2008 has a negative impact on human development. Thus, it is suggested that India has to promote both globalization and ICT judiciously and consciously in order to improve the human development. JEL Classification: O47, F00, I32, C51

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