scholarly journals Role of Tax Revenue, Non-tax Revenue, and Foreign Aid to Increase the Size of Budget in Nepal

2020 ◽  
pp. 31-48
Author(s):  
Arjun Kumar Dahal ◽  
Ghanshyam Dhakal ◽  
Khagendra Kumar Thapa
Keyword(s):  
Foreign Aid ◽  
Secondary Data ◽  
Fiscal Year ◽  
Tax Revenue ◽  
Exploratory Research ◽  
Causality Test ◽  
Long Run ◽  
Integration Test ◽  
Short Run ◽  
The Impact

Purpose: The purpose of the present study is to find the impact of tax revenue, non-tax revenue, and foreign aid to increase the size of the budget in Nepal. Methods: This study is based on descriptive, analytical, and exploratory research designs. The Johnsen Co-integration Test, VECM, Wald Test, and Granger Causality Test are used to find long-run relation, impact, short-run causality, and granger cause between the pairs of variables. Results: The tax revenue, non-tax revenue, foreign aid, and budget are co-integrated, or they have a long-run association ship. The result of VECM shows that tax revenue, non-tax revenue, foreign aid is nicely fitted, and they are jointly significant to explain the size of the budget in Nepal. Short-run causality was found between the size of budget and tax revenue and size of budget and foreign aid, but there was an absence of short-run causality between budget and non-tax revenue in Nepal. The granger cause was not found between the pair of variables. Implications: It seems to increase the tax revenue and decrease the dependency on foreign aid. Limitations: This study was based on the secondary data of 40 years from the fiscal year 1979/80 to 2018/19.  Only three variables, tax revenue, non-tax revenue, and foreign aid, are considered the effecting factor of the budget size. Hence, further study is necessary by employing other tools and variables. Originality: The author was not affected by the study and findings of others.

scholarly journals Enhanced Welfare through Market Integration: A Study of Growth, Variation and Price Integration of Chickpea

2020 ◽  
pp. 1-15
Author(s):  
L. Wahlang ◽  
M. K. Sekhon ◽  
Sunny Kumar
Keyword(s):  
Market Integration ◽  
Uttar Pradesh ◽  
Secondary Data ◽  
Optimal Level ◽  
Online Marketing ◽  
Causality Test ◽  
Long Run ◽  
Integration Test ◽  
Short Run ◽  
The Impact

Chickpea is the most important pulse in India. The present study is based on secondary data, worked out trends in production, seasonal variation and integration among major markets of India. Advance Econometrics analysis like Granger Causality test, Johansen Co-integration test and Vector Error Correction model were employed to examine the integration of markets. The trend in area and production shows fluctuations in major producing states except in Uttar Pradesh. In all the major producing states of chickpea, contribution of area was higher in production. The production trend improves in case of Madhya Pradesh whereas decreased in Rajasthan and Uttar Pradesh. Seasonality in arrivals has impacted the monthly retail price in all the selected markets. Out of six selected markets, five markets were having a long run price relationship. However, market integration has not yet reached an optimal level because all markets were not spatially integrated with one another in all the cases. The short run results indicated that chickpea’s markets were not well integrated. This could be due to poor market intelligence and unfavorable location of the markets. The policy intervention calls for strengthening market intelligent wing in all markets along with the establishing of online marketing system through computerization and networking. Strengthening of market infrastructure including transportation and communication facilities are the need of time in order to fully integrate the market prices. Concentration of marketing during the lean seasons helps reducing the impact of seasonality.

scholarly journals Foreign Aid and Economics Development Nexus: The Case of Sierra Leone

2021 ◽  
Vol 9 (6) ◽  
pp. 219-233
Author(s):  
Ezekiel Kalvin Duramany-Lakkoh
Keyword(s):  
Economic Growth ◽  
Foreign Aid ◽  
Sierra Leone ◽  
Growth And Development ◽  
Secondary Data ◽  
Empirical Estimation ◽  
Economic Growth And Development ◽  
Long Run ◽  
Short Run ◽  
The Impact

This study investigates the impact of foreign aid on economic growth in Sierra Leone using cointegration and error correction methodology by Johansen and Juselius (1990). Utilizing secondary data for the period 1970 to 2018, the empirical estimation revealed that foreign aid in Sierra Lone is positively and significantly related to economic growth both in the short run and long run, confirming the importance of the study. The policy implication of the study is that the Sierra Leone government should seek more foreign aid to accelerate economic growth and development.  

Tax-to-GDP Ratio and the Relation of Tax Revenue with GDP: Nepalese Perspective

2020 ◽  
Vol 4 (1) ◽  
pp. 80-96
Author(s):  
Arjun Kumar Dahal
Keyword(s):  
Secondary Data ◽  
Tax Revenue ◽  
Exploratory Research ◽  
Vector Error Correction ◽  
Long Run ◽  
Integration Test ◽  
Ratio Condition ◽  
The Government ◽  
Integrated Or ◽  
High Degree

 This study aims to show the tax-to-GDP ratio condition and explore the relation of tax revenue with Nepal's GDP. It is based on the secondary data that is collected from various published sources. Descriptive and exploratory research designs are used to explore the relationship between tax revenue and GDP. Some statistical and econometric tools like mean, depression, correlation, Johnsen Co-integration Test, Vector Error Correction Model (VECM), serial correlation, heteroskedasticity test, and normality test are used. There is a high degree of the positive relationship between tax revenue and GDP of Nepal. The tax revenue and GDP are co-integrated, or they have a long-run association ship. The tax-to-GDP ratio of Nepal lies in the high rank among the various developing countries. So, tax to GDP ratio alone cannot ensure its economic growth. It is advised to the concerned authorities to increase the income to increase the tax revenue; otherwise, it increases the general public's dissatisfaction with the government.

scholarly journals Tax revenue, expenditure, and economic growth: An analysis of long-run relationships

2017 ◽  
Vol 24 (03) ◽  
pp. 04-26
Author(s):  
Lien Nguyen Phuong ◽  
Thanh Su Dinh
Keyword(s):  
Economic Growth ◽  
Method Of Moments ◽  
Generalized Method Of Moments ◽  
Tax Revenue ◽  
Dynamic Panel ◽  
Causality Test ◽  
Long Run ◽  
Integration Test ◽  
The Impact

Focusing on the investigation of “long-term” relationship between tax revenue, expenditure, and economic growth, this paper employs the Granger causality test and finds that the linkage between tax revenue and spending is a bi-directional causal correlation. Furthermore, applying Persyn and Westerlund’s (2008) co-integration test allows for corroboration of existence of long-run cointegration linkages among outcome of economy and the three variables. In addition, by adopting two-step system generalized method of moments (SGMM) for a dynamic panel of 82 developed and developing countries during 16-year period (2000–2015), this research demonstrates that the impact of tax revenue and spending is substantial and ambiguous, depending on different groups of economies.

scholarly journals Estimating the Impact of Crop Diversification on Economic Growth in India: A Quantitative Assessment

2019 ◽  
Vol 8 (4) ◽  
pp. 5771-5776
Keyword(s):  
Economic Growth ◽  
Secondary Data ◽  
Crop Diversification ◽  
Income Generation ◽  
Causality Test ◽  
Long Run ◽  
Short Run ◽  
Generation Capacity ◽  
Diversification Mechanism ◽  
The Impact

Though agriculture is the mainstay in India, it accounts only 14 percent sectoral share in GDP. This is mainly because of low productivity and income generation capacity of agriculture. In this regard, crop diversification can act as a mechanism to eliminate this dilemma. It not only will increase the agricultural productivity but also will accelerate the income generation capacity. In this study we have investigated the impact of crop diversification on economic growth in India since 1988. The study is completely based on secondary data. In order to investigate the impact of crop diversification on economic growth, we have estimated Granger causality test based on vector error correction model setting. The results reveal that in India, there is no causality running from crop diversification to economic growth in the short-run. However, in the long-run crop diversification causes economic growth in India and the nature of cause is positive. Finally, the study concludes that suitable policies should be adopted to encourage the farmer to adopt the crop diversification mechanism. This will ultimately accelerate economic growth of the nation through increased income and employment in agriculture and reduction in poverty of the nation.

scholarly journals Effect of Foreign Aids on Economic Growth in Nigeria

2020 ◽  
pp. 194-204
Author(s):  
Isiaka Najeem Ayodeji ◽  
Makinde Wasiu Abiodun
Keyword(s):  
Economic Growth ◽  
Time Series Data ◽  
Unit Root Test ◽  
Secondary Data ◽  
Least Square ◽  
Series Data ◽  
Causality Test ◽  
Long Run ◽  
Integration Test ◽  
The Impact

This study investigated the impact of foreign aids on economic growth in Nigeria using time series data spanned from 1990 to 2017. The research considered the secondary data that were gathered from CBN statistical bulletin 2017 and World Bank Data Indictors. Ordinary Least Square techniques was adopted in the study and used Augmented Dickey-Fuller Unit Root Test, co integration test, granger causality test, ECM to estimates data employed. The findings revealed that all the variables employed were stationary at first difference and integrated at the same order1(I), the co-integration test shows that variables are co-integrated at one co-integrating equation which means that there is a long run relationship. The Error Correction Model established that the error that caused disequilibrium in the short run is being corrected in the long-run at a speed of adjustment at 6%. The findings revealed real gross domestic product responds inversely to changes in official development assistance and foreign direct investment. Based on these findings the study concluded that foreign aids have a significant impact on economic growth in Nigeria. Different diagnostic tests are applied in order to confirm the major assumption of multiple regression analysis like multicollinearity, heteroskedasticity and autocorrelation. Therefore, the study recommends among others that government needs to formulate strong and effective education and healthcare policies to facilitate and attract investment in the sectors and improve their efficiency in the long-run that will influence productivity.

scholarly journals THE IMPACT OF MONEY ON OUTPUT IN CZECH REPUBLIC AND ROMANIA

2018 ◽  
Vol 19 (1) ◽  
pp. 20-41 ◽  
Author(s):  
Mihaela SIMIONESCU ◽  
Adam P. BALCERZAK ◽  
Yuriy BILAN ◽  
Anna KOTÁSKOVÁ
Keyword(s):  
Czech Republic ◽  
Global Financial Crisis ◽  
Causality Test ◽  
Developed Country ◽  
Developed Economies ◽  
Long Run ◽  
Short Run ◽  
Almost All ◽  
Vector Error Correction Models ◽  
The Impact

The problem of relationship between output and money has become again a subject of special interests of economists after the most recent global financial crisis and monetary stabilization policies applied by central banks of almost all developed economies. In this context, the main aim of this paper is to assess the relation between GDP and the most important monetary variables in two countries: Romania and Czech Republic over the period of 1995:Q1 – 2015:Q4. The choice of these economies was deliberate. The selected countries are different from the viewpoint of rate and results of transformation from the centrally planned to market economy, which have influenced their current economic environment stability. Czech Republic is currently classified as middle or even developed country, whereas Romania is still considered as a developing economy. Thus, differences between these two countries make them interesting in the case of comparative studies. In the empirical part of our research the vector error correction models (VECM) were applied. The main findings of the article are the following: in Romania, there is a short-run causality from money supply (M3) to GDP and a long-run relationship between GDP, internal credit and M3. According to Granger causality test, the rate of M3 in Romania was a cause for economic. In Czech Republic, there is a short-run causality from M3 to GDP and a long-run causality between GDP, internal credit and M3. Thus, the results contradict the money neutrality hypothesis in post-transformation Central European economies.

scholarly journals Impact of Capital Flight on Tax Revenue in Nigeria: A Co-integration Approach

2020 ◽  
Vol 11 (5) ◽  
pp. 141
Author(s):  
Damilola Felix Eluyela ◽  
Inemesit Bassey ◽  
Olufemi Adebayo Oladipo ◽  
Adekunle Emmanuel Adegboyegun ◽  
Abimbola Ademola ◽  
...  
Keyword(s):  
Secondary Data ◽  
Least Square ◽  
Capital Flight ◽  
Tax Revenue ◽  
National Bureau ◽  
Tax System ◽  
Positive Direction ◽  
Integration Test ◽  
Inland Revenue ◽  
The Impact

This study presents an empirical analysis of the impact of capital flight on tax revenue in Nigeria. We made use of secondary data collected from the Central Bank of Nigeria Statistical Bulletin of various issues, Federal Inland Revenue Services and National Bureau of Statistics. The empirical measurement covers the sample period between 1980 and 2015. An Ordinary Least Square, Augmented Dickey-Fuller unit root test, Error Correction Mechanism and Co-integration test was adopted in the study. The results revealed that the Gross Domestic Product has a significant effect in the positive direction, while capital flight and inflation rate have a significant effect in the negative direction. The study recommended that the Federal Inland Revenue System, the department saddled with the responsibility of tax collection, should review the tax system and policies with the aim of plugging loopholes in the existing tax system thereby preventing organizations from evading and avoiding taxes.

Does Ban on Futures trading (de)stabilise spot volatility?

2019 ◽  
Vol 9 (2) ◽  
pp. 145-166 ◽  
Author(s):  
Neharika Sobti
Keyword(s):  
Granger Causality ◽  
Price Discovery ◽  
Futures Trading ◽  
Causality Test ◽  
Content Type ◽  
Long Run ◽  
Short Run ◽  
The Impact ◽  
Spot Volatility ◽  
Non Parametric

Purpose The purpose of this paper is to ascertain the possible consequences of ban on futures trading of agriculture commodities in India by examining three critical issues: first, the author explores whether price discovery dominance changes between futures and spot in the pre-ban and post-relaunch phase both in the long run and short run. Second, the author examines the impact of ban and relaunch of futures trading on its underlying spot volatility for five sample cases of agriculture commodities (Wheat, Sugar, Soya Refined Oil, Rubber and Chana) using both parametric and non-parametric tests. Third, the author revisits the destabilization hypothesis in the light of ban on futures trading by examining the impact of unexpected component of liquidity of futures on spot volatility. Design/methodology/approach The author uses widely adopted methodology of co-integration to examine long-run relationship between spot and futures, while the short-run relationship is investigated using vector error correction model (VECM) and Granger causality to test price discovery in the pre-ban and post-relaunch phases. The second objective is explored using a combination of parametric and non-parametric tests such as Welch one-way ANOVA and Kruskal–Wallis test, respectively, to gauge the impact of ban on futures trading on spot volatility along with post hoc tests to investigate pairwise comparison of spot volatility among three phases (pre-ban, ban and post-relaunch) using Dunn Test. In addition, extensive robustness test is undertaken by adopting augmented E-GARCH model to ascertain the impact of ban and relaunch of futures trading on spot volatility. The third objective is investigated using Granger causality test between spot volatility and unexpected component of liquidity of futures estimated using Hodrick and Prescott (HP) filter to re-visit the destabilization hypothesis. Findings The author found extensive evidence for the dominance of futures market in the price discovery of agriculture commodities both in the pre-ban and post-relaunch phases in India. The ban on futures trading is found to have a destabilizing impact on spot volatility as evident from the findings of Wheat, Sugar and Rubber. In addition, it is observed that spot volatility was highest during the ban phase as compared to the pre-ban and post-relaunch phases for all four commodities barring Chana. The author found that destabilisation hypothesis holds true during the pre ban phase, while weakening of destabilization hypothesis is observed in the post-relaunch phase as unexpected futures liquidity has no role in driving the spot volatility. Originality/value This study is a novel attempt to empirically examine the potential impact of ban and relaunch of futures trading of agriculture commodities on two key market quality dimensions – price discovery and spot volatility. In addition, destabilization hypothesis is revisited to investigate the impact of futures trading on spot volatility during the pre-ban and post-relaunch period.

scholarly journals TRADE OPENNESS AND ECONOMIC GROWTH: EMPIRICAL EVIDENCE FROM INDIA

2014 ◽  
Vol 16 (1) ◽  
pp. 188-205 ◽  
Author(s):  
Qazi Muhammad Adnan Hye ◽  
Wee-Yeap Lau
Keyword(s):  
Economic Growth ◽  
Human Capital ◽  
Granger Causality ◽  
Trade Openness ◽  
Granger Causality Test ◽  
Causality Test ◽  
Long Run ◽  
Rolling Window ◽  
Short Run ◽  
The Impact

The main objective of this study is to develop first time trade openness index and use this index to examine the link between trade openness and economic growth in case of India. This study employs a new endogenous growth model for theoretical support, auto-regressive distributive lag model and rolling window regression method in order to determine long run and short run association between trade openness and economic growth. Further granger causality test is used to determine the long run and short run causal direction. The results reveal that human capital and physical capital are positively related to economic growth in the long run. On the other hand, trade openness index negatively impacts on economic growth in the long run. The new evidence is provided by the rolling window regression results i.e. the impact of trade openness index on economic growth is not stable throughout the sample. In the short run trade openness index is positively related to economic growth. The result of granger causality test confirms the validity of trade openness-led growth and human capital-led growth hypothesis in the short run and long run.

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