scholarly journals The Impact of Public Debt on the Economic Growth of Jordan: An Empirical Study (2000- 2015)

2017 ◽  
Vol 6 (2) ◽  
pp. 114 ◽  
Author(s):  
Tawfiq Ahmad Mousa ◽  
Abudallah. M. LShawareh
Keyword(s):  
Economic Growth ◽  
Empirical Study ◽  
Regression Model ◽  
Least Squares ◽  
Public Debt ◽  
Least Squares Method ◽  
Negative Impact ◽  
External Debt ◽  
Using Data ◽  
The Impact

In the last two decades, Jordan’s economy has been relied on public debt in order to enhance the economic growth. As such, an understanding  of the dynamics between public debt and economic growth is very important in addressing the obstacles to economic growth. The study investigates the impact of public debt on economic growth using data from 2000 to 2015. The study employs least squares method and regression model to capture the impact of public debt on economic growth. The results of the analysis indicate that there is a negative impact of total public debt, especially the external debt on economic growth. 

scholarly journals The Impacts of Monetary and Fiscal Policies on Economic Growth in Malaysia, Singapore and Thailand

2020 ◽  
Vol 9 (1) ◽  
pp. 114-130
Author(s):  
Chai-Thing Tan ◽  
Azali Mohamed ◽  
Muzafar Shah Habibullah ◽  
Lee Chin
Keyword(s):  
Economic Growth ◽  
Least Squares ◽  
Least Squares Method ◽  
Negative Impact ◽  
Positive Impact ◽  
Ordinary Least Squares ◽  
Jel Classification ◽  
Fiscal Policies ◽  
Distributed Lag ◽  
The Impact

This article analyses the impact of monetary and fiscal policies on economic growth in Malaysia, Singapore and Thailand from 1980:Q1 to 2017:Q1. Autoregressive distributed lag (ARDL) approach is employed to determine the long-run relationship. Further, a range of econometric models, such as fully modified least squares method (FMOLS), canonical cointegration regression (CCR) and dynamic ordinary least squares method (DOLS), are applied to check the robustness. The results are stable and robust as all the models yield consistency result. The main findings in this study demonstrate that: (a) interest rate had a negative impact on economic growth in three selected countries. (b) Government spending had a negative impact on economic growth in Malaysia and Singapore, but had a positive impact in Thailand. (c) Monetary policy is more effective in Malaysia and Singapore, while fiscal policy is more effective in Thailand. JEL Classification: E52, E58, E62, C01

scholarly journals The Impact of Fiscal Policy on the Economic Growth of Jordan

2018 ◽  
Vol 10 (10) ◽  
pp. 145
Author(s):  
Abdullah Ali Al-Masaeed ◽  
Evgeny Tsaregorodtsev
Keyword(s):  
Economic Growth ◽  
Fiscal Policy ◽  
Linear Regression ◽  
Multiple Linear Regression ◽  
Least Squares ◽  
Public Debt ◽  
Least Squares Method ◽  
Government Expenditure ◽  
Gdp Growth ◽  
The Impact

The present study examined the impact of fiscal policy measured by (Government expenditure, Government revenues, internal public debt, external public debt) in addition to exports and inflation factors on the Jordanian GDP growth for the period 1990-2010. The study used multiple linear regression and least squares method (OLS) to test the study hypotheses. The study found that government expenditure, exports and government revenues has a positive and significant impact on the Jordanian GDP growth, and negative and significant impact on the Jordanian GDP growth. The study found that external public debt has a negative but not significant impact on the Jordanian GDP growth.

Mandatory CSR expenditure and stock return

2020 ◽  
Vol 28 (6) ◽  
pp. 951-975
Author(s):  
Asit Bhattacharyya ◽  
Md Lutfur Rahman
Keyword(s):  
Least Squares ◽  
Stock Returns ◽  
Least Squares Method ◽  
Negative Impact ◽  
Generalized Method Of Moments ◽  
Ordinary Least Squares ◽  
Reverse Causality ◽  
Endogeneity Bias ◽  
Content Type ◽  
The Impact

Purpose India has mandated corporate social responsibility (CSR) expenditure under Section 135 of the Indian Companies Act, 2013 – the first national jurisdiction to do so. The purpose of this paper is to examine the impact of mandated CSR expenditure on firms’ stock returns by using actual CSR spending data, whereas the previous studies mostly focus on voluntary CSR proxied by CSR scores. Design/methodology/approach The authors estimate their baseline regression by using ordinary least squares(OLS) method. Although the baseline regression involving CSR expenditure and stock returns using ordinary least squares method are estimated, endogeneity and reverse causality biases are addressed by using two-stage least squares and generalized method of moments approaches. These approaches contribute mitigating endogeneity bias and biases associated with unobserved heterogeneity and simultaneity. Findings The findings document that mandatory CSR expenditure has a negative impact on firms’ stock returns which supports the “shareholders” expense’ view. This result remain robust after controlling for endogeneity bias and the use of both standard and robust test statistics. The authors however observe that this result holds for the firms with actual CSR expenditure equal to the mandated amount but does not hold for the firms with actual CSR expenditure greater than the mandated amount. Therefore, the authors provide evidence that CSR expenditure’s impact on stock returns depends on whether firms simply comply the regulation or voluntarily chose an amount of CSR expenditure above the mandated amount. Originality/value The primary contribution is to present a valid and robust evidence of negative effect of mandated CSR spending on firms’ stock returns when the mandatory CSR spending rule is already in place. This study contributes by examining the impact of mandated CSR spending on stock during post-implementation period (2015-2017), whereas other studies by Dharampala and Khanna (2018); Kapoor and Dhamija (2017); and Mukherjee et al. (2018) mainly examined the impact of legislation on Indian CSR. The authors use mandated actual CSR expenditure, whereas previous studies mostly focus on voluntary CSR proxied by CSR scores.

scholarly journals Assessment of the influence of FDI on the economic growth of the host country: evidence from Kazakhstan

2020 ◽  
Vol 159 ◽  
pp. 06007
Author(s):  
Dinara Rakhmatullayeva ◽  
Iliyas Kuliyev ◽  
Zhaksylyk Beisenbaiyev ◽  
Talgat Tabeyev
Keyword(s):  
Economic Growth ◽  
Regression Model ◽  
Host Country ◽  
National Economy ◽  
Positive Relationship ◽  
Negative Impact ◽  
Multiple Regression Model ◽  
Fdi Inflows ◽  
Simulation Results ◽  
The Impact

The article examines the impact of FDI inflows on the economic growth of the host country, using the Kazakhstan economy as an example. The authors attempted to assess the impact of FDI using a multiple regression model. As a measure of economic growth, Kazakhstan’s GDP data for the period 2000-2017 was used. The simulation results didn’t reveal the negative impact of FDI on economic growth, but the analysis revealed that the presence of a positive relationship is not essential for assessing the growth of the national economy.

scholarly journals Analyzing the Impact of the Renewable Energy Sources on Economic Growth at the EU Level Using an ARDL Model

Mathematics ◽  
2020 ◽  
Vol 8 (8) ◽  
pp. 1367 ◽  
Author(s):  
Mihail Busu
Keyword(s):  
Economic Growth ◽  
Renewable Energy ◽  
Regression Model ◽  
Negative Impact ◽  
Renewable Energy Sources ◽  
Energy Sources ◽  
The European Union ◽  
Causality Analysis ◽  
The Impact ◽  
The Eu

Energy is one of the most important drivers of economic growth, but as the population is increasing, in normal circumstances, in all countries of the world, there is a demand for energy produced from conventional resources. Increasing prices of conventional energy and the negative impact on the environment are two of the main reasons for switching to renewable energy sources (RESs). The aim of the paper is to quantify the impact of the RESs, by type, on the sustainable economic growth at the European Union (EU) level. The research was performed for all 28 EU member states, for a time frame from 2004 to 2017, through a panel autoregressive distributed lag (ARDL) approach and causality analysis. Furthermore, Hausman test was performed on the regression model. By estimating the panel data regression model with random effects, we reveal through our results that RESs, namely wind, solar, biomass, geothermal, and hydropower energy, have a positive influence on economic growth at EU level. Moreover, biomass has the highest impact on economic growth among all RES. In fact, a 1% increase in biomass primary production would impact the economic growth by 0.15%. Based on econometric analysis, our findings suggest that public policies at the EU level should be focused on investment in RESs.

scholarly journals The Impact of the COVID-19 Pandemic on Electricity Consumption and Economic Growth in Romania

Energies ◽  
2021 ◽  
Vol 14 (9) ◽  
pp. 2394
Author(s):  
Georgeta Soava ◽  
Anca Mehedintu ◽  
Mihaela Sterpu ◽  
Eugenia Grecu
Keyword(s):  
Economic Growth ◽  
Linear Regression ◽  
Regression Model ◽  
Linear Regression Model ◽  
Negative Impact ◽  
Electric Energy ◽  
Electricity Consumption ◽  
Electric Energy Consumption ◽  
The One ◽  
The Impact

This paper analyzes the impact of the COVID-19 pandemic on economic growth and electricity consumption and investigates the hypothesis of the influence of this consumption on the gross domestic product (GDP) for Romania. Using time series on monthly electricity consumption and quarterly GDP and a multi-linear regression model, we performed an analysis of the evolution of these indicators for 2007–2020, a comparison between their behavior during the financial crisis vs. COVID-19 crisis, and empirically explore the relationships between GDP and electricity consumption or some of its components. The results of the analysis confirm that the shock of declining activity due to the COVID-19 pandemic had a severe negative impact on electric energy consumption and GDP in the first half of 2020, followed by a slight recovery. By using a linear regression model, long-term relationships between GDP and domestic and non-household electricity consumptions were found. The empirically estimated elasticity coefficients confirm the more important impact of non-household electricity consumption on GDP compared to the one of domestic electricity consumption. In the context of the COVID-19 pandemic, the results of the study could be useful for optimizing energy and economic growth policies at the national and European levels.

scholarly journals The asymmetric and threshold impact of external debt on economic growth: new evidence from Egypt

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mesbah Fathy Sharaf
Keyword(s):  
Economic Growth ◽  
Structural Breaks ◽  
Negative Impact ◽  
External Debt ◽  
Threshold Level ◽  
Substantial Contribution ◽  
Content Type ◽  
Long Run ◽  
The Impact ◽  
Nardl Model

PurposeWithin a multivariate framework, this study examines the asymmetric and threshold impact of external debt on economic growth in Egypt during the period 1980–2019.Design/methodology/approachThe paper uses a nonlinear autoregressive distributed lag (NARDL) bounds testing approach to cointegration and a vector error-correction model to estimate the short- and long-run parameters of equilibrium dynamics. A multiple structural breaks model is estimated to test nonlinearity in the relationship between external debt and economic growth.FindingsResults of the NARDL model show a robust statistically significant negative long-run impact on economic growth stemming from both positive and negative external-debt-induced shocks. In terms of magnitude, on the one hand, the impact of external-debt-induced negative shocks exceeds that of the positive. In the short and long run, on the other hand, the growth impact of external debt in Egypt is symmetric. There is also support for the nonlinearity hypothesis in which a negative impact on growth of external debt obtains once the threshold level of external debt-to-GDP ratio equals or exceeds 96.7%.Practical implicationsIdentifying the threshold level after which external debt becomes harmful to economic growth would help inform policymakers in Egypt about maximum external debt levels that can be sustained without impairing economic growth.Originality/valueThe current study makes a substantial contribution to the extant literature on the debt-growth tradeoffs. It breaks ground by being the first tract that examines, using a NARDL model, asymmetry and nonlinearity of debt-growth tradeoffs in Egypt.

scholarly journals Public Debt, Current Account Deficit and Economic Growth: A Study on Indian Context

2020 ◽  
Vol 9 (3) ◽  
pp. 594-601
Keyword(s):  
Economic Growth ◽  
Current Account ◽  
Public Debt ◽  
Current Account Deficit ◽  
External Debt ◽  
Series Data ◽  
Long Run ◽  
Short Run ◽  
The Impact ◽  
Internal Debt

External debt and internal debt form main components of the public debt structure in India. India’s debt profile shows increasing external debt and simultaneously increasing the deficit in current account which have impact on economic growth of India. Our study assesses the impact of India’s Gross External Debt (GED), Internal Debt (IND) and Current Account Deficit (CAD) on economic growth (GDP) by using time series data from 1998-99 to 2018-19. We intend to find long-run as well as short run relationship between the variables with the help of Eviews software. Stationarity of data is tested by considering Augmented Dickey-Fuller (ADF) test statistics and used Johansen Co-integration test and Vector Error Correction Model (VECM). The result shows co-integration among the variables with one equation. The result of VECM shows existence of long-run relationship among the variables. But the study fails to find the short-run causality among the variables. The results show external debt (GED), internal debt (IND), and Current Account Deficit (CAD) have negative and statistically insignificant relationship with GDP. It shows increase in public debt and deficit in current account results in decrease in GDP growth.

scholarly journals Public Debt and Economic Growth in the European Union. Empirical Investigation

2021 ◽  
Vol 18 ◽  
pp. 199-208
Author(s):  
Piotr Misztal
Keyword(s):  
Economic Growth ◽  
European Union ◽  
Economic Development ◽  
Public Debt ◽  
Budget Deficit ◽  
Negative Impact ◽  
Foreign Debt ◽  
Budget Deficits ◽  
The European Union ◽  
The Impact

The relatively high sizes of public debts in many of the world's member states have led to frequentdebates concerning the influence of public debt on economic growth. Analyzing economic literature it can beseen, that theoretical and empirical considerations on this topic are divided into three main parties. The firstpart of analyzes is the work of the Keynesians, which emphasizes that the budget deficit as well as the publicdebt positively affects the economic development of the country, mainly through the impact of the budgetexpenditure multiplier. The opposite view on budget deficits and public debt is represented by the neoclassicalschool, who argue that the budget deficit and public debt can have negative impact on economic growth.Conversely, proponents of the Ricardian equivalence concept believe that budget deficits and public debt areneutral for economic growth. These three mentioned above approaches to the budget deficit and public debtproblem have led to many debates at home and abroad about the importance of budget deficit and public debt inthe process of economic growth and economic development of the country. The main objective of the study isto determine the impact of the foreign debt and home debt on economic activity of the country, based on theexample of the 27 member countries of the European Union (without United Kingdom) in the period 2006-2017. The statistics came from the European Statistical Office (Eurostat) and International Monetary Funddatabase (World Economic Outlook).

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