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.

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 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

Does corruption adversely affect economic growth in Tunisia? ARDL approach

2020 ◽  
Vol 23 (1) ◽  
pp. 38-54
Author(s):  
Anas Al Qudah ◽  
Azzouz Zouaoui ◽  
Mostafa E. Aboelsoud
Keyword(s):  
Economic Growth ◽  
Economic Development ◽  
Government Expenditure ◽  
Physical Capital ◽  
Content Type ◽  
Distributed Lag ◽  
Long Run ◽  
Per Capita ◽  
The Impact

Purpose This study aims to better understand the phenomenon of corruption in Tunisia in relation to its impact on economic development. The period of study is 1995 to 2014. The auto-regressive distributed lag (ARDL) model is adopted to examine the existence of a long-term relationship between the above-mentioned variables and also the direct and indirect consequences of corruption on economic development in Tunisia. Design/methodology/approach The study uses a modern econometric technique to estimating the long-term relationship (e.g. the co-integration) between corruption and economic development; using this technique also allows us to investigate the impact of corruption on economic growth. Findings The empirical results show that corruption has a negative effect on per capita gross domestic product (GDP) in Tunisia for the period under review. This effect is described as a direct effect of corruption in the long term; specifically, declines are observed in per capita GDP, over the long run, by almost 1 per cent, following a 1 per cent increase in the level of corruption. The results also show that corruption has indirect effects via transmission channels, such as investment in physical capital, which is positively significant in the presence of corruption. The same observation is made at the level of government expenditure during the previous year, while for those of the current year, the coefficient becomes negative but not significant. With respect to human capital, the impact of corruption on education expenditures is insignificant. Originality/value The paper begins with an overview of previous literature in this area. Given the nature of corruption and the differences in the meanings attributed to it, from one country to another and from one culture to another, the paper moves on to study the impact of corruption in Tunisia as a case study for one country with one socio-cultural environment. The authors then propose several methods and possible solutions, which could be implemented to deal with this problem.

scholarly journals An Empirical Analysis on the Relationship between Health Care Expenditures and Economic Growth in the European Union Countries

2018 ◽  
Vol 2 (1) ◽  
pp. 12
Author(s):  
Çiğdem Börke Tunalı ◽  
Naci Tolga Saruç
Keyword(s):  
Economic Growth ◽  
European Union ◽  
Health Expenditure ◽  
Gdp Per Capita ◽  
The European Union ◽  
Long Run ◽  
European Union Countries ◽  
Short Run ◽  
Per Capita ◽  
The Relationship

This paper empirically investigates the relationship between health expenditure and economic growth in the European Union countries over the period 1995-2014. By using the Dumitrescu-Hurlin Test (Dumitrescu and Hurlin, 2012) which is developed to test Granger causality in panel datasets (Lopez and Weber, 2017), it is found that there is a unidirectional relationship between these variables and gross domestic product (GDP) per capita Granger causes health expenditure per capita. After determining the direction of the relationship between health expenditure per capita and GDP per capita we estimate the short run and the long run effects of GDP per capita on health expenditure per capita by using Mean Group (MG) and Pooled Mean Group (PMG) estimators which are developed by Pesaran and Smith (1995) and Pesaran, Shin and Smith (1999) respectively. According to the estimation results, GDP per capita has a positive effect on health expenditure per capita both in the short run and the long run.

scholarly journals An Empirical Analysis on the Relationship between Health Care Expenditures and Economic Growth in the European Union Countries

2021 ◽  
Vol 4 (2) ◽  
pp. 11
Author(s):  
Çiğdem Börke Tunalı ◽  
Naci Tolga Saruç
Keyword(s):  
Economic Growth ◽  
European Union ◽  
Health Expenditure ◽  
Gdp Per Capita ◽  
The European Union ◽  
Long Run ◽  
European Union Countries ◽  
Short Run ◽  
Per Capita ◽  
The Relationship

This paper empirically investigates the relationship between health expenditure and economic growth in the European Union countries over the period 1995-2014. By using the Dumitrescu-Hurlin Test (Dumitrescu and Hurlin, 2012) which is developed to test Granger causality in panel datasets (Lopez and Weber, 2017), it is found that there is a unidirectional relationship between these variables and gross domestic product (GDP) per capita Granger causes health expenditure per capita. After determining the direction of the relationship between health expenditure per capita and GDP per capita we estimate the short run and the long run effects of GDP per capita on health expenditure per capita by using Mean Group (MG) and Pooled Mean Group (PMG) estimators which are developed by Pesaran and Smith (1995) and Pesaran, Shin and Smith (1999) respectively. According to the estimation results, GDP per capita has a positive effect on health expenditure per capita both in the short run and the long run.

The relationship between financial development and economic growth in Eswatini (formerly Swaziland)

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Siphe-okuhle Fakudze ◽  
Asrat Tsegaye ◽  
Kin Sibanda
Keyword(s):  
Economic Growth ◽  
Granger Causality ◽  
Financial Development ◽  
Granger Causality Test ◽  
Causality Test ◽  
Content Type ◽  
Distributed Lag ◽  
Long Run ◽  
Short Run ◽  
The Relationship

PurposeThe paper examined the relationship between financial development and economic growth for the period 1996 to 2018 in Eswatini.Design/methodology/approachThe Autoregressive Distributed Lag bounds test (ARDL) was employed to determine the long-run and short-run dynamics of the link between the variables of interest. The Granger causality test was also performed to establish the direction of causality between financial development and economic growth.FindingsThe ARDL results revealed that there is a long-run relationship between financial development and economic growth. The Granger causality test revealed bidirectional causality between money supply and economic growth, and unidirectional causality running from economic growth to financial development. The results highlight that economic growth exerts a positive and significant influence on financial development, validating the demand following hypothesis in Eswatini.Practical implicationsPolicymakers should formulate policies that aims to engineer more economic growth. The policies should strike a balance between deploying funds necessary to stimulate investment and enhancing productivity in order to enliven economic growth in Eswatini.Originality/valueThe study investigates the finance-growth linkage using time series analysis. It determines the long-run and short-run dynamics of this relationship and examines the Granger causality outcomes.

The relationship between energy consumption and economic growth: New evidence from Greece

2021 ◽  
pp. 131-153
Author(s):  
Antonia Gkergki
Keyword(s):  
Economic Growth ◽  
Energy Consumption ◽  
Gdp Per Capita ◽  
Short Term ◽  
Vector Error Correction ◽  
Per Capita ◽  
Econometric Tests ◽  
The Government ◽  
New Research ◽  
The Relationship

This paper examines the relationship between the energy consumption and economic growth from 1968 to 2019 in Greece, by employing the vector error-correction model estimation. A series of econometric tests are employed concerning the stationary of the data, and the co-integration and the relationship among the variables during the long- and short-term. The em-pirical results suggest that there is no bidirectional relationship between economic growth and energy consumption. More specifically, GDP per capita does not affect the energy consump-tion of the three primary sources either in the long-term or the short-term. In other words, the economic crisis and its implications for GDP do not affect energy consumption, and they are not responsible for the considerable decrease in energy sources' consumption. On the other hand, the energy consumption of oil and coal negatively affect the GDP per capita. These re-sults are different from previous studies' conclusions for Greece; this is because the never been experienced before. These findings raise new research questions and also show the limi-tations of the Greek market, as it is regulated and controlled by the government.

scholarly journals Does the Export-Led Growth Hypothesis Hold for Services Exports in Emerging Economies?

2021 ◽  
Vol 14 (27) ◽  
pp. 63-75
Author(s):  
Okpeku Lilian ONOSE ◽  
◽  
Osman Nuri ARAS ◽  
Keyword(s):  
Economic Growth ◽  
Emerging Economies ◽  
Emerging Countries ◽  
Distributed Lag ◽  
Autoregressive Distributed Lag ◽  
Long Run ◽  
Short Run ◽  
Per Capita ◽  
Positive Effect ◽  
Growth Hypothesis

The export-led growth hypothesis states a positive relationship between the growth of exports and long-run economic growth. This study examines the validity of the export-led growth hypothesis of services exports in 5 emerging economies, including Brazil, India, Nigeria, China, and South Africa (BINCS), for the period of 1980-2019. The study employs the panel mean group autoregressive distributed lag (ARDL) procedure to identify a causal relationship between services exports and gross domestic product (GDP) per capita. The findings show that the export-led growth hypothesis in services only has a positive effect on economic growth in the short run while other variables, including foreign direct investment (FDI), gross capital formation, and labour, increase economic growth in the long run. Hence, the emerging countries should focus more on internal investment to boost growth in the long and short run.

scholarly journals FEATURES OF DEVELOPMENT OF TOURISM IN GEORGIA AS AN INDUSTRY CONTRIBUTING TO ECONOMIC GROWTH OF THE COUNTRY

2019 ◽  
Vol 29 (2) ◽  
pp. 279-289
Author(s):  
L.V. Detochenko
Keyword(s):  
Economic Growth ◽  
Gross Domestic Product ◽  
Tourism Industry ◽  
Gdp Per Capita ◽  
Tourist Destinations ◽  
Transport Component ◽  
Tourist Flows ◽  
Per Capita ◽  
The Republic

The role and place of the tourism industry in the economic complex of Georgia are considered; the conclusion is made about the “tourist miracle” taking place in the country, which is a factor of the economic growth of the republic. The differences between the concepts of “foreign visitors” and “foreign tourists” are presented. The increase in the contribution of the tourism industry and related industries involved in the tourism industry in the creation of the gross domestic product of the country, its impact on the growth of the Georgian budget and GDP per capita, the average monthly wage is shown. The conclusion about the need to increase the share of medium and long-term tourists among foreign visitors and tourists in the country is justified. The problems of the return of tourists, the long-term stay in Georgia, the differences of the countries-generators of tourist flows by these indicators have been studied. The changes in work and the prospects of various types of transport for the delivery of tourists to Georgia are analyzed, the measures to improve the tourist transport component are proposed. The correlation between the number of tourist arrivals and the average cost of tourists visiting Georgia from different countries is shown and the economic profitability of attracting Russian tourists, capable of filling all the tourist destinations of the country, contributing to the “tourist miracle” of Georgia is considered.

scholarly journals The effects of carbon emissions, rainfall, temperature, inflation, population, and unemployment on economic growth in Saudi Arabia: An ARDL investigation

PLoS ONE ◽  
2021 ◽  
Vol 16 (4) ◽  
pp. e0248743
Author(s):  
Md Mazharul Islam ◽  
Majed Alharthi ◽  
Md Wahid Murad
Keyword(s):  
Economic Growth ◽  
Time Series ◽  
Saudi Arabia ◽  
Carbon Emissions ◽  
Annual Rainfall ◽  
Long Term Effects ◽  
Ardl Model ◽  
Long Run ◽  
Unemployment Problem

Objective While macroeconomic and environmental events affect the overall economic performance of nations, there has not been much research on the effects of important macroeconomic and environmental variables and how these can influence progress. Saudi Arabia’s economy relies heavily on its vast reserves of petroleum, natural gas, iron ore, gold, and copper, but its economic growth trajectory has been uneven since the 1990s. This study examines the effects of carbon emissions, rainfall, temperature, inflation, population, and unemployment on economic growth in Saudi Arabia. Methods Annual time series dataset covering the period 1990–2019 has been extracted from the World Bank and General Authority of Meteorology and Environmental Protection, Saudi Arabia. The Autoregressive Distributed Lag (ARDL) approach to cointegration has served to investigate the long-run relationships among the variables. Several time-series diagnostic tests have been conducted on the long-term ARDL model to check its robustness. Results Saudi Arabia can still achieve higher economic growth without effectively addressing its unemployment problem as both the variables are found to be highly significantly but positively cointegrated in the long-run ARDL model. While the variable of carbon emissions demonstrated a negative effect on the nation’s economic growth, the variables of rainfall and temperate were to some extent cointegrated into the nation’s economic growth in negative and positive ways, respectively. Like most other nations the short-run effects of inflation and population on economic growth do vary, but their long-term effects on the same are found to be positive. Conclusions Saudi Arabia can achieve both higher economic growth and lower carbon emissions simultaneously even without effectively addressing the unemployment problem. The nation should utilize modern scientific technologies to annual rainfall losses and to reduce annual temperature in some parts of the country in order to achieve higher economic growth.

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