scholarly journals Is External Debt Hampering Growth in the ECOWAS Region?

2020 ◽  
Vol 12 (4) ◽  
pp. 54
Author(s):  
Felix Fofana N’Zue
Keyword(s):  
Economic Performance ◽  
Positive Impact ◽  
External Debt ◽  
Debt Accumulation ◽  
Knowing That ◽  
Long Run ◽  
Rate Of Increase ◽  
Short Run ◽  
Regional Economic Performance ◽  
The Impact

The paper aims to determine the impact of external debt on economic growth in the ECOWAS region. Panel data spanning from 1990 to 2016 is used and analyzed using panel CS-ARDL estimation approach. The results indicate cointegration among the variables. The paper found that external debt has a positive impact on economic performance up to a threshold. In the short run, the threshold stood at 45% and in the long run, it stood at 42.52%. Beyond these points, additional external debt accumulation negatively affects the regional economic performance. Knowing that the level of the region’s external debt-to-GDP ratio stood at 33.11% in 2018 (below the threshold), it appears that external debt has not yet hampered economic performance in the ECOWAS region. However, there is a need for caution given the fast rate of increase (25% in six years) of external debt accumulation in the region.

scholarly journals HIGHER EDUCATION AND ECONOMIC GROWTH A CASE STUDY OF PAKISTAN

2010 ◽  
Vol 27 (1) ◽  
Author(s):  
Tariq Mahmood
Keyword(s):  
Higher Education ◽  
Economic Growth ◽  
Positive Impact ◽  
Public Expenditures ◽  
Annual Data ◽  
Unequal Distribution ◽  
Long Run ◽  
Short Run ◽  
The Impact ◽  
Education And Economic Growth

This paper highlights the role of higher education for the economic growth inPakistan. We explore the impact of increase in enrolment at tertiary level on thegrowth rate of income per worker. Estimating a growth model developed byMankiv et. al. (1992), using the annual data of Pakistan, we find a robustrelationship between higher education and economic growth in the long run. Themodel has also shown that investment in fixed capital has positive impact oneconomic uplift. Applying Johansen’s cointegration test, we show that the longrun elasticity of income with respect to capital stock is different from its share inGDP, and increase in the enrolment per unit of effective worker helps inbolstering economic growth. But, like earlier literature we also find statisticallyinsignificant relationship between higher education and GDP per worker. Thereare some fundamental reasons concerning to the ambiguous impact of investingin human capital on economic growth, particularly in the short run in case ofPakistan. First, the sharp increase in enrollment, recently, has been damaging thequality of education. Second, the unequal distribution of educational services hasheld back the efficiency of public expenditures, particularly before the reformsundertaken by higher education commission. Third, the low private return ofeducation has limited the demand for higher education in Pakistan for almost fiftyyears.

scholarly journals Does Inflation Reduce Air Pollution? Evidence from Indonesia

2021 ◽  
Vol 317 ◽  
pp. 01068
Author(s):  
Andryan Setyadharma ◽  
Shanty Oktavilia ◽  
Indah Fajarini Sri Wahyuningrum ◽  
Sri Indah Nikensari ◽  
Arumawan Mei Saputra
Keyword(s):  
Air Pollution ◽  
Positive Impact ◽  
Methodological Approach ◽  
Long Run ◽  
High Inflation ◽  
Positive Rate ◽  
Short Run ◽  
Negative Impacts ◽  
The Impact

Inflation could likely cause devastating impacts where high inflation can harmful economic and social circumstances. However, only limited studies try to find the impact of inflation on the quality of air. The aim of this study is to investigate the empirical linkage between inflation and air pollution in Indonesia covering the period of 1981 until 2017 by using an error correction model (ECM) methodological approach. The result of study suggests that in the short run, higher inflation is causing the lower level of air pollution. Similarly, in the long run, higher inflation is also affecting the lower level of air pollution. While there are a lot of negative impacts of inflation in Indonesia, the finding in this study indicates a positive impact of inflation in Indonesia, which is higher inflation can reduce the air pollution. The results seem contradict with the target of central bank of Indonesia to have a low but positive rate of inflation. Based on the findings, the study suggests the policymakers in Indonesia to support a robust role of inflation stability in achieving targets related to the reduction of air pollution.

scholarly journals Pooled Mean Group Approach to Test the Determinants of Financial Integration: Evidence From OECD and G20 Countries

2019 ◽  
Vol 10 (3) ◽  
pp. 366
Author(s):  
Ahliman Abbasov
Keyword(s):  
Economic Growth ◽  
Financial Crisis ◽  
Financial Integration ◽  
Financial Liberalization ◽  
Global Financial Crisis ◽  
Positive Impact ◽  
Trade Integration ◽  
Long Run ◽  
Short Run ◽  
The Impact

This study investigates the role of financial liberalization, trade integration, economic growth and global financial crisis on financial integration level of selected OECD and G20 countries during the period of 2000-2016. PMG technique has been implemented to estimate the ARDL model. Regression results suggest a statistically significant long run co-integration relationship between financial integration and independent variables. Analysis also concludes that there are both long run and short run positive impact of trade integration level on financial integration level. The study also concludes that the global financial crisis has had a negative influence on global financial integration both in the short run and long run. But according to the regression results the impact of financial liberalization on the actual financial integration level of the countries only appears in the long run. Results also indicate that positive impact of economic growth on financial globalization level appears only in the long run.

scholarly journals Foreign Direct Investment and External Debt Impacts Assessment on Environmental Resources Depletion in Nigeria

2021 ◽  
Vol 50 (4) ◽  
pp. 361-380
Author(s):  
Aderopo Raphael Adediyan ◽  
Uchenna Kingsley Chigozie ◽  
Venus Nmakanmma Obadoni
Keyword(s):  
Foreign Direct Investment ◽  
Crude Oil ◽  
Direct Investment ◽  
External Debt ◽  
Debt Management ◽  
Environmental Resources ◽  
Long Run ◽  
Depletion Rate ◽  
Short Run ◽  
The Impact

The public interest in justness, equity and fairness in the use of environmental resources between the present and future generations have raised concern about the current depletion rate of environmental resources in Nigeria. Several socioeconomic factors are involved. Worrisome however is the inflow of foreign direct investment and external debt escalation in recent years in the economy. Importantly, we asked, do they contribute to the depletion of environmental resources in Nigeria? In that, we modelled the implications of growth in FDI and external debt on four cases of environmental resources depletion (forestry, solid minerals, fisheries, and crude oil resources productions). The estimated results suggested that though the depletion rate of environmental resources like crude oil depends largely, over the long run and short run, on the movement in FDI inflow, critical to the level of depletion of the forest is the short run effect of external debt. Furthermore, the depletion level of fisheries responds positively only to a change in FDI with a lag in the short run. In terms of solid minerals, we found a long run impact of external debt. Therefore, provided the impact of a rise in FDI and external debt on the depletion of environmental resources is subject to the particular resource and time in Nigeria, selective policies based on the FDI and external debt management is appropriately adequate to control the level of depletion of environmental resources in Nigeria for the benefit of the future generation.

PUBLIC EXTERNAL DEBT AND ITS IMPACT ON EXCHANGE RATE IN NIGERIA

2020 ◽  
Vol 8 (1) ◽  
pp. 25-39
Author(s):  
Aigbedion Marvelous ◽  
◽  
Iyakwari Baba ◽  
Mairana Audu ◽  
◽  
...  
Keyword(s):  
Exchange Rate ◽  
Percent Level ◽  
External Debt ◽  
Secondary Data ◽  
Ordinary Least Squares ◽  
Foreign Reserve ◽  
Long Run ◽  
Short Run ◽  
Level Of Significance ◽  
The Impact

The study is an attempt to empirically examine the impact of public external debt on exchange rate in Nigeria. The nature of data for this study is secondary data and the major source of data is the Statistical Bulletin published annually by the Central Bank of Nigeria (CBN) December, 2018.The study used Ordinary Least Squares (OLS) and Error Correction Model (ECM) tools of analysis in the investigation of the impact and relationship among the economic variables. The long and short run results confirmed that public external debt has impact on exchange rate in Nigeria. However, based on the probability value at the short run all independent variables were statistically significant in explaining variation in Exchange Rate in Nigeria except Foreign Reserve in Nigeria (FRN) at 5 percent level of significance. While, at the long run the External Debt in Nigeria (EXDTN), Debt Service Payment in Nigeria (DSPN) and Foreign Reserve in Nigeria (FRN) Foreign Reserve in Nigeria (FRN) was statistically significant in explaining the variation in Exchange Rate in Nigeria (EXCHR) at 5 percent level of significance. Therefore, the study recommends that Government should increase the mechanism to check and control the allocation and implementation of public funds in Nigeria to reduce deficit budget and exchange rate in Nigeria.

Performance of IPOs of Indian Companies Backed by Private Equity

2019 ◽  
Vol 23 (4) ◽  
pp. 397-409
Author(s):  
Till Drebinger ◽  
Shailendra Kumar Rai ◽  
Heiko Hinrichs
Keyword(s):  
Initial Public Offerings ◽  
Private Equity ◽  
Positive Impact ◽  
Abnormal Returns ◽  
Public Offerings ◽  
Ipo Performance ◽  
Cumulative Abnormal Returns ◽  
Long Run ◽  
Short Run ◽  
The Impact

We examine 616 Indian initial public offerings (IPOs), including 116 IPOs backed by private equity (PE), between 2000 and 2016, to test whether PE-backed IPOs perform better than non-PE-backed IPOs in the short run as well as in the long run in terms of cumulative abnormal returns (CARs). We also examine the impact of the PE firm nationality on post-IPO performance. Consistent with the existing literature, we find underperformance for all IPOs, on an average, within 1 year. However, PE-backed IPOs have lower degree of underperformance than non-PE-backed IPOs. We also find that size, liquidity and leverage have a positive impact on the post-IPO performance after the financial crisis, whereas issue amount and capital issue year are negatively correlated to CARs before and during the crisis. We also find significant effects of PE firm nationality on CAR development. IPOs backed by India-dedicated PE firms perform best, while those backed by foreign PE firms perform worst and even underperform non-PE-backed IPOs. IPOs by foreign PE firms perform better if they co-invest with India-dedicated PE firms.

scholarly journals China–Pakistan Economic Corridor, Logistics Developments and Economic Growth in Pakistan

Logistics ◽  
2021 ◽  
Vol 5 (2) ◽  
pp. 35
Author(s):  
Zunaira Khadim ◽  
Irem Batool ◽  
Muhammad Bilal Lodhi
Keyword(s):  
Economic Growth ◽  
Time Series Data ◽  
Positive Impact ◽  
Real Income ◽  
Series Data ◽  
Data Set ◽  
Long Run ◽  
Short Run ◽  
Factor Inputs ◽  
The Impact

The study aims to analyze the impact of China–Pakistan Economic Corridor (CPEC) logistics-related developments on economic growth in Pakistan. The study defined a Cobb–Douglas type of research framework in which the country’s real income level relates to four factor inputs, e.g., employed labor force, logistics development, financial development, and energy consumption in an economy. The study utilized the time series data set for the period 1972–2018. To estimate the long run relationship and short run adjustment mechanism, the study used Johansen’s method of co-integration and error correction model. Estimated results showed that the country’s logistics developments have a significant positive impact on economic growth in both the long run and the short run. It implies that China–Pakistan collaborative efforts for logistics developments will have a strong positive impact on economic growth in Pakistan.

scholarly journals Macroeconomic Determinants of External Debt Accumulation in Ethiopia: An ARDL Bound Testing Approach

2021 ◽  
Vol 4 (2) ◽  
pp. 1-28
Author(s):  
Eyayu Tesfaye Mulugeta
Keyword(s):  
External Debt ◽  
Infrastructure Development ◽  
Continuous Increase ◽  
Debt Accumulation ◽  
Long Run ◽  
Short Run ◽  
Testing Approach ◽  
The Government ◽  
Macroeconomic Determinants ◽  
External Borrowing

This study attempts to explore the major macroeconomic determinants of external debt stock growth in Ethiopia prompted by a continuous increase in government external borrowing over the period 1981-2018. For this purpose, the study employed the ARDL bound testing approach and all the necessary time series diagnostic tests were conducted. The long run model estimation result revealed that per capita GDP growth has a positive and significant effect on the country’s external debt stock. The result also revealed that the budget deficit and political instability put a significant upward pressure on the external debt stock growth of the country both in the short run and long run. Consistent with some existing empirical evidence, the study revealed negative and significant influence of openness and infrastructure development on the external debt stock growth. Consequently, the government should embark on prudent borrowing to achieve structural transformation.

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 Liquidity commonality-economic cycle nexus in emerging Asian economies: An ARDL approach

2021 ◽  
Vol 8 (6) ◽  
pp. 26-39
Author(s):  
Syeda Hina Zaidi ◽  
Keyword(s):  
Economic Growth ◽  
Positive Impact ◽  
Policy Coordination ◽  
Market Liquidity ◽  
Economic Cycle ◽  
Long Run ◽  
Ardl Approach ◽  
Asian Economies ◽  
Short Run ◽  
The Impact

This study investigates the impact of liquidity commonality on the economic cycle for 7 emerging Asian economies over a period of 1997-2018, using Autoregressive Regressive Distributed Lag (ARDL) approach to Cointegration. Gross domestic investment, total consumption expenditure, net trade, and unemployment rate are studied as macro variables in the analysis. The nexus has been discussed both in the short-run and long-run. A significant relationship between economic growth and stock market liquidity commonality is found for large economies including China, India, Indonesia, and Malaysia; however, we found mixed evidence regarding the direction of the relationship for different economies. The aggregate analysis revealed that liquidity commonality has a positive impact on economic growth in the short-run and a negative association in the long-run. As a non-diversifiable risk factor, liquidity co-movement shocks spread the market wide and disrupt the overall functioning of financial markets and eventually affect the economy. For regulators and policymakers and particularly for those in emerging economies, understanding the factors affecting economic cycles and recognizing their dynamics and magnitude is important for policy coordination and market development. Further, the firms in Asian markets operate in legal and regulatory environments distinct from those of firms analyzed in the previous literature. A major knowledge gap pertaining to Asian emerging markets serves as the primary motivation for this study.

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