scholarly journals Exploring the Relationship between Government R & D Expenditures and Economic Growth in a Global Perspective: A PMG Estimation Approach

2019 ◽  
Vol 12 (4) ◽  
pp. 163
Author(s):  
Abida Hafeez ◽  
Karim Bux Shah Syed ◽  
Fiza Qureshi
Keyword(s):  
Economic Growth ◽  
Developing Countries ◽  
National Level ◽  
Global Perspective ◽  
Policy Implications ◽  
Pooled Mean Group ◽  
Short Run ◽  
Relationship Of ◽  
The Impact ◽  
The Relationship

This paper analyses the impact of research and development (R&D) expenditures on economic growth in a global perspective utilizing the data of 60 developed and developing countries from 1998 to 2015. This study employs the Pooled Mean Group Estimators (PMGE) proposed by Pesaran et al. (1999) to find a heterogeneous trend among different groups of countries. The findings suggest that there exist a significant & positive relationship amongst R&D spending and economic growth globally, which appears consistent with economic theory. The study also confirms both long and short run relationship of economic growth and expenditures on R& D except that the short-run coefficient appears insignificant in the case of developing countries. This study implies that economies with higher R& D spending tend to have higher economic growth. This study has retentive policy implications for management and policymakers who could make important endeavors at the national level in this regard.

scholarly journals Inflation and Unemployment Trade-off: Is Phillips Curve True for African Developing Countries? Evidence from Sudan

2021 ◽  
Vol 4 (3) ◽  
Author(s):  
Omer Allagabo Omer Mustafa
Keyword(s):  
Economic Growth ◽  
Developing Countries ◽  
Phillips Curve ◽  
Economic Thought ◽  
Trade Off ◽  
Long Run ◽  
Short Run ◽  
Wage Inflation ◽  
The Relationship

The relationship between wage inflation and unemployment (Phillips Curve) is controversial in economic thought, and the controversy is centered around whether there is always a trade-off or not. If this relationship is negative it is called The short-run Fillips Curve. However, in the long run, this relationship may probable not exist. The matter of how inflation and unemployment influence economic growth, is debatably among macroeconomic policymakers. This study examines the behavior of the Phillips Curve in Sudan and its effect on economic growth.

scholarly journals Inflation and Economic Growth: a Review of The International Literature

2017 ◽  
Vol 20 (3) ◽  
pp. 41-56 ◽  
Author(s):  
Foluso A. Akinsola ◽  
Nicholas M. Odhiambo
Keyword(s):  
Economic Growth ◽  
Developing Countries ◽  
Negative Relationship ◽  
Threshold Level ◽  
Data Set ◽  
Developed Economies ◽  
The Impact ◽  
The Relationship ◽  
Over Time ◽  
Country Specific

This paper surveys the existing literature on the relationship between inflation and economic growth in developed and developing countries, highlighting the theoretical and empirical indications. The study finds that the impact of inflation on economic growth varies from country to country and over time. The study also finds that the results from these studies depend on country‑specific characteristics, the data set used, and the methodology employed. On balance, the study finds overwhelming support in favour of a negative relationship between inflation and growth, especially in developed economies. However, there is still much controversy about the specific threshold level of inflation that is appropriate for growth. Most previous studies on this subject just assume a unidirectional causal relationsship between inflation and economic growth. To our knowledge, this may be the first review of its kind to survey, in detail, the existing research on the relationship between inflation and economic growth in developed and developing countries.

scholarly journals R&D Expenditure R&D Expenditure as an Accelerator of Economic Growth with Special Reference to Developing Countries

2021 ◽  
Vol 7 (3) ◽  
Author(s):  
Tariq Mahmood Ali ◽  
Adiqa Kausar Kiani ◽  
Tariq Bashir ◽  
Talah Numan Khan
Keyword(s):  
Economic Growth ◽  
Developing Countries ◽  
Developing Economies ◽  
Positive Association ◽  
Estimation Model ◽  
Panel Ardl ◽  
Long Run ◽  
Short Run ◽  
The Impact ◽  
D Investment

Purpose: In this network age, among the other factors which increase economic growth, the R&D activities, a pivotal and effective factor, carried out by a country. The present study attempts to investigate the empirical R&D expenditure-economic growth nexus in developing and developed economies, and also provides useful insight about how R&D investment works to enhance the economic growth of a country. Design/Methodology/Approach: In this regard, 21 years data of top 100 economies of the world from 1995 to 2015 has been utilized. The Panel ARD Model approach has been preferred to explore the impact of R&D investment on economic growth (GDP). For construction of the estimation model, five different variables are used. In order to accomplish the results, along with analysing the data of 100 countries a whole, analysis has also been made by dividing countries into different categories and groups. Overall, the Panel ARDL test has been performed on nine different groups of countries. Findings: The results reveal that, ceteris paribus, there is a strong positive association between R&D expenditure and economic growth (GDP) in the long-run; 1% increase in GERD leads to 0.07% increase in GDP. However, the impact in the developing countries (0.043%) is lower compared to the developed OECD countries (0.27%). No impact of the R&D expenditure on economic growth is observed in the short-run. Implications/Originality/Value: The study presents some thought-provoking ideas, policy recommendations and implications for the policy makers, planners and researchers, especially in the context of developing economies.  

Macroeconomic performance under evolutionary dynamics of employee profit-sharing

2020 ◽  
Vol 8 (4) ◽  
pp. 589-615
Author(s):  
Gilberto Tadeu Lima ◽  
Jaylson Jair da Silveira
Keyword(s):  
Economic Growth ◽  
Evolutionary Dynamics ◽  
Capacity Utilization ◽  
Profit Sharing ◽  
Policy Implications ◽  
Macroeconomic Performance ◽  
Employee Compensation ◽  
Long Run ◽  
Short Run ◽  
The Impact

This paper investigates the impact on capacity utilization and economic growth as variables driven by effective demand of income distribution featuring the possibility of profit-sharing with workers. Firms choose to compensate workers with either a base wage or a share of profits on top of this base wage. In accordance with robust empirical evidence, workers in sharing firms have higher productivity than workers in non-sharing firms. The distribution of employee compensation strategies and labor productivity across firms is evolutionarily time-varying. Two major results carrying relevant theoretical and policy implications are obtained. First, heterogeneity in employee compensation strategies across firms (and therefore earnings inequality across workers) may emerge as a long-run equilibrium outcome. Second, beyond the short run, a higher fraction of profit-sharing firms may result in either higher or lower rates of capacity utilization and economic growth.

scholarly journals Foreign Direct Investment, Exports, and Domestic Output in Pakistan

2003 ◽  
Vol 42 (4II) ◽  
pp. 715-723 ◽  
Author(s):  
Mohsin Hasnain Ahmad ◽  
Shaista Alam ◽  
Mohammad Sabihuddin Butt
Keyword(s):  
Economic Growth ◽  
Developing Countries ◽  
Import Substitution ◽  
Empirical Work ◽  
Development Theory ◽  
Growth Theory ◽  
Trade Reform ◽  
Endogenous Growth Theory ◽  
The Impact ◽  
The Relationship

The impact of the policy reform on economic performance has been one of the stifling issues in development economics in the recent years. Since the middle 1970s, there has been considerable progress in the trade reform in the most developing countries, turning from an import substitution strategy to export-oriented approach. Pakistan also follows export-oriented policies. Pakistan’s trade pattern and trade policy have been moving towards fewer and fewer controls, tariffs rates have come tumbling down. Export-led-growth hypothesis (ELG) suggests that due to positive correlation between export and growth, therefore, export-oriented policies contribute to economic growth. Thus, international trade and development theory suggests that export growth contributes positively to economic growth. On the basis of this framework, most empirical work on the effects of export promoting strategy followed in developing countries evaluated openness with trade. Empirical research about the effect of this liberalisation process has treated export as principal channel for growth. The relationship with exports and growth, grounded in endogenous growth theory, has been tested for Pakistan [Khan (1995); Ahmad, Butt, and Alam (2000) and Akbar (2000)].

scholarly journals Does Information and Communication Technologies Sustain Economic Growth? The Underdeveloped and Developing Countries Case

2010 ◽  
pp. 147-160
Author(s):  
Erkan Erdil ◽  
I. Hakan Yetkiner ◽  
Burcu Türkcan
Keyword(s):  
Economic Growth ◽  
Developing Countries ◽  
Information And Communication Technologies ◽  
Communication Technologies ◽  
Data Set ◽  
Long Run ◽  
Determining Factors ◽  
Information And Communication ◽  
The Impact ◽  
The Relationship

This chapter tests the impact of ICT on economic growth for underdeveloped and developing countries by using a panel dataset for the period of 1995-2006. The authors first develop the theory of the relationship between ICT and economic growth. They show that ICT-capital has a positive effect both on long-run and transitional income per capita, if it is considered as a factor of production. Next, the authors estimate a panel data set with 131 underdeveloped and developing countries under the assumption that ICT is one of the determining factors of economic growth. They find that ICT has positive and significant effect on economic growth even after the use of some control variables.

scholarly journals Green Manufacturing Challenge in Small and Medium Industries (SMEs) Batik Laweyan Surakarta

2020 ◽  
Vol 202 ◽  
pp. 03011
Author(s):  
Puspitasari Nia Budi ◽  
Yulianto Muhammad Faisal Afa ◽  
Rosyada Zainal Fanani
Keyword(s):  
Economic Growth ◽  
Developing Countries ◽  
Green Manufacturing ◽  
The Other ◽  
Public Image ◽  
Interpretive Structural Modeling ◽  
Financial Benefits ◽  
Textile And Apparel ◽  
Relationship Of ◽  
The Relationship

Small and medium industries (SMEs) are the main contributor of the economic growth in the countries, especially developing countries. On the other hand, SMEs also produce serious problems to the environment. Therefore, SMEs, especially the textile and apparel sector need to apply green manufacturing (GM). GM can reduce the amount of waste and pollution produced. It can lead to financial benefits and a positive public image of the SMEs if properly implemented. It is a challenge to apply GM in SMEs because their limitation of knowledge and resources. It needs a study the enabler and inhibiter factors to the application of GM. It need also an analysis how the factors related each other. The aim of this study is to determine the most significant enabler and inhibiter factors in applying GM to SMEs at Kampung Batik Laweyan Surakarta. This study uses Interpretive Structural Modeling (ISM) approach to compare the perceptions of respondents regarding the relationship of each factor. The results show that the main enabler factor is the implementation of environmental regulations and strict supervision, while the main inhibiter factor is the lack of subsidies provided for SMEs to implement GM.

scholarly journals Do coffee exports have impact on long-term economic growth of countries?

2019 ◽  
Vol 65 (No. 8) ◽  
pp. 385-393
Author(s):  
Theodore Murindahabi ◽  
Qiang Li ◽  
Eric Nisingizwe ◽  
E.M.B.P. Ekanayake
Keyword(s):  
Economic Growth ◽  
Open Economy ◽  
Policy Implications ◽  
Pooled Mean Group ◽  
Long Run ◽  
Auto Regressive ◽  
Coffee Sector ◽  
The Impact ◽  
Positive Effect

The present paper aims to investigate the impact of coffee exports on long-term economic growth in an open economy for 32 countries exporting coffee over the period of 1994–2013. The study applied a dynamic panel Auto-Regressive Distributive Lag (ARDL) modelling approach with estimators. All variables involved in the specified model were found to be stationary of order I (1) at a first difference. The Pooled Mean-Group (PMG) long-run results suggest the presence of a significant positive effect of coffee exports on economic growth. The empirical findings of the study suggest policy implications, promoting the coffee sector to boost the countries’ economy.

Remittance Behavior of Migrants and its Macroeconomic Effects in Four Developing Countries

2012 ◽  
Vol 1 (1) ◽  
pp. 41-59 ◽  
Author(s):  
Anupam Das
Keyword(s):  
Economic Growth ◽  
Developing Countries ◽  
Negative Impact ◽  
Positive Impact ◽  
Estimation Procedure ◽  
Policy Implications ◽  
Self Interest ◽  
Macroeconomic Effects ◽  
The Impact ◽  
Remittance Behavior

The literature on the macroeconomic effects of remittances is inconclusive. This study establishes a relationship between remittances and other important macroeconomic variables, such as consumption, investment and economic growth in Bangladesh, Egypt, Pakistan, and Syria over the period 1975-2006. Overall results suggest that remittances have a positive impact on economic growth in Pakistan and Syria but a negative impact in Bangladesh and Egypt. Negative remittance-growth coefficients in those two countries suggest a counter-cyclical relationship. A key objective of this paper is to identify how the remittance behavior of migrants varies across countries. Results from panel estimation procedure shows that a combination of self-interest and enlightened self-interest behavior of migrants is responsible for the growth impact in Bangladesh. The enlightened self-interest motivation is also the most likely cause of the growth impact in Egypt. Finally, the self-interest behavior explains the growth impacts in Pakistan and Syria. Results from this paper have policy implications for developing countries which face dilemmas and debates on the impact of remittances on economic growth.

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