scholarly journals Nexus of Economic Growth on Happiness and Inequality: Reexamine the Paradox

2020 ◽  
pp. 35-49
Author(s):  
Debraj Roka
Keyword(s):  
Economic Growth ◽  
Random Effect ◽  
Estimation Method ◽  
Positive Association ◽  
Dynamic Panel Data ◽  
Gdp Growth ◽  
Method Of Moment ◽  
Explanatory Variables ◽  
Moment Estimation ◽  
Production And Distribution

Economic Growth is the essence of capitalism and it has the paradoxical relation on happiness and an inverse relationship with inequality. Capitalism is fueling the inequality in terms of access, opportunities, production, and distribution. The paper entitled “Nexus of Economic Growth on Happiness and Inequality” is reexamined the paradox which estimated the effect of economic growth and income on happiness and inequality by analyzing 1080 observations from 2008 to 2016 period covered 120 countries. The main explained variable of this paper is happiness and major interested explanatory variables are GDP per capita, GDP growth and inequality. The paper applied fixed and random effect and Linear Dynamic Panel Data (LDPD)/generalized method of moment estimation method as its estimation strategy. This paper investigated the positive association between GDP growth and income with happiness and found that the increase of economic growth and income lead to increase inequality which has a negative association with happiness.

scholarly journals Impact of Project and Programme Aid on Economic Growth: A Cross Country Analysis

2018 ◽  
Vol 57 (2) ◽  
pp. 145-174
Author(s):  
Pervez Zamurrad Janjua ◽  
Malik Muhammad ◽  
Muhammad Usman
Keyword(s):  
Economic Growth ◽  
Principal Component ◽  
Economic Policies ◽  
Method Of Moment ◽  
System Equation ◽  
Moment Estimation ◽  
Country Analysis ◽  
Procurement Reform ◽  
Cross Country ◽  
The Impact

This study examines the impact of foreign aid instruments, namely Project Aid and Programme Aid, on economic growth of 27 aid-receiving countries. The study constructs a system of three equations, i.e. growth, investment and human capital. Using the Generalised Method of Moment estimation technique, the study concludes that while Project Aid has a positive and significant impact on economic growth, Programme Aid has an insignificant impact on economic growth. Additionally, the study finds that economic policies do enhance effectiveness of aid at aggregate level. Therefore, the capacity of aid-recipient countries to effectively use their resources for economic development needs due consideration. Keywords: Project Aid, Programme Aid, Economic Growth, Conditionality, Procurement Reform, System Equation Method, Generalised Method of Moment (GMM), Principal Component Analysis

scholarly journals PENGARUH PEMBANGUNAN INFRASTRUKTUR TELEKOMUNIKASI TERHADAP PERTUMBUHAN EKONOMI DI ASEAN

2019 ◽  
Vol 4 (1) ◽  
Author(s):  
Galih adi Prasetyo
Keyword(s):  
Economic Growth ◽  
Trade Openness ◽  
Dynamic Panel Data ◽  
Infrastructure Development ◽  
Method Of Moment ◽  
Telecommunications Infrastructure ◽  
Telecommunication Infrastructure ◽  
Asean Countries ◽  
Urbanization Rate ◽  
The Impact

Abstract This study aims to determine the effect of the development of telecommunications infrastructure to economic growth in ASEAN. Generalized Method of Moment (GMM) is used to test how telecommunication infrastructure development to economic growth in ASEAN. This study uses a dynamic panel data from 10 ASEAN countries in the period 2000-2013. Variables used in this research is the GDP growth, the development of telecommunication infrastructure index, foreign direct investment, trade openness, and urbanization rate. Tests were performed using STATA 13.0 software shows the use sys-GMM better than diff-GMM. The results of this study indicate the development of telecommunications infrastructure significantly affect economic growth but had negative relationships. Based on the theory of demand following hypothesis (DFH) economic growth leads to the development of telecommunications infrastructure. The impact of telecommunications infrastructure development is only emerge through the product or outcome of economic growth. Telecommunications infrastructure development is considered as the impact of economic growth continues to increase.

scholarly journals The impact of credits to the private sector and FDI on the economic growth in ASEAN

2020 ◽  
Vol 3 (4) ◽  
pp. 343-351
Author(s):  
Dang Van Cuong
Keyword(s):  
Economic Growth ◽  
Private Sector ◽  
Negative Impact ◽  
Positive Impact ◽  
Random Effect ◽  
Estimation Method ◽  
Least Square ◽  
Fdi Inflows ◽  
Asean Countries ◽  
The Impact

The paper examines the impact of credits to private sector and foreign direct investment (FDI) flows on the economic growth of ASEAN countries in the period 1995-2017. The paper also validates the capital spread of FDI inflows to economic growth through credits to private sector. Using fixed effect estimation method (FEM), random effect (REM) and generalized least square (GLS) for panel data, we found that FDI inflows are positvely correlated with the economic growth of the ASEAN countries. This once again confirms the role of FDI in promoting the economic growth as evidenced in previous studies. Meanwhile, credits to private sector exert a negative impact on the economic growth in these countries which is an interesting finding given that few studies yield a similar result. To assess the spillover effect of FDI to growth through credits to private sector, we augment our model with a variable that reflects the interaction between credits to private sector and FDI. This variable is negative and statistically significant, suggesting that FDI is yet to show its positive impact on growth through spreading capital to credits to privatte sector.

scholarly journals Investigating the Impact of External Debt on Economic Growth: A Case Study of Pakistan

2021 ◽  
Vol 4 (2) ◽  
pp. 41-51
Author(s):  
IRUM SAJJAD ◽  
IRUM SAJJAD ◽  
DR. MUHAMMAD AZAM KHAN
Keyword(s):  
Economic Growth ◽  
Growth Rate ◽  
External Debt ◽  
Gdp Growth ◽  
Policy Makers ◽  
Explanatory Variables ◽  
Gdp Growth Rate ◽  
Augmented Dickey Fuller ◽  
The Impact ◽  
Adf Test

This article is an attempt to evaluate the effect of external debt on economic growth for during the period of 1980–2016. The Augmented Dickey Fuller (ADF) test is used for determining stationarity, whereas the ADF test results exhibit that the variables used found are . The empirical results indicate that external debt and total debt service have deleterious and statistically significant impacts on GDP growth rate. The other explanatory variables namely human capital by life expectancy, exports, and Foreign Direct Investment (FDI)reveals significantly positive significant influence on GDP growth rate. Appropriate policy should be adopted by the policy makers to reduce external debt, increase volume of exports and enhance more foreign investment, it will boost economic growth in the country.

scholarly journals DEMOCRACY AND GROWTH: A DYNAMIC PANEL DATA STUDY

2018 ◽  
Vol 65 (01) ◽  
pp. 41-80 ◽  
Author(s):  
JEFFRY A. JACOB ◽  
THOMAS OSANG
Keyword(s):  
Economic Growth ◽  
Economic Policy ◽  
Panel Data ◽  
Direct Effect ◽  
Growth Process ◽  
Dynamic Panel Data ◽  
Dynamic Panel ◽  
Explanatory Variables ◽  
Regime Stability ◽  
And Control

In this paper, we investigate the idea whether democracy has a direct effect on economic growth. We use a system GMM framework that allows us to model the dynamic aspects of the growth process and control for the endogenous nature of many explanatory variables. In contrast to the growth effects of institutions, regime stability, openness, geography and macro-economic policy variables, we find that measures of democracy matter little, if at all, for the economic growth process.

scholarly journals The Convergence of Beta Credit for Micro, Small and Medium Enterprises (MSMEs) in Indonesia’s Provinces

2018 ◽  
Vol 7 (1) ◽  
pp. 33
Author(s):  
I Made Suidarma ◽  
I Made Sara ◽  
I Nyoman Anggaradana ◽  
I Gusti Ayu Made Agung Mas Andriani Pratiwi
Keyword(s):  
Estimation Method ◽  
Value Added ◽  
Dynamic Panel Data ◽  
Third Party ◽  
Half Time ◽  
Method Of Moment ◽  
Economic Sectors ◽  
Conditional Convergence ◽  
The Absolute ◽  
Conditional Beta

<p><em>The success of SMEs is determined by the business capital and able to give value added to the business more productively. Various financing pattern schemes for SMEs have been provided in various regions and all economic sectors. However, the development of SMEs credit is still concentrated in several regions in Indonesia</em><em> t</em><em>his can lead to inequality in the growth of SMEs</em><em>. </em><em>This study aims to analyze the convergence of absolute beta and conditional beta in the Provinces in Indonesia and calculate the half-time or time required to achieve steady-state conditions of the SME credit convergence process. Convergence test used is beta conditional convergence and absolute convergence with the monthly time period during 2017.1 until 2017.7. The determinant of SMEs convergence of credit in Indonesia is a number of third-party funds. The model used is dynamic panel data regression and the estimation method used is Arellano-Bond Generalized Method of Moment (AB-GMM).</em></p><p><em>The results of the study show that during the study period, there has been a convergence credit process in Indonesia for both absolute and conditional convergence models. The conditional beta-convergence model provides a smaller beta value than the absolute model. The speed of credit growth convergence between provinces in Indonesia with half-time of 6,94 months for the absolute model and the half-time of 6,96 months for the conditional model. </em><em></em></p>

scholarly journals The effect of cow longevity on dynamic productivity growth of dairy farming

2020 ◽  
Author(s):  
Beshir Melkaw Ali
Keyword(s):  
Panel Data ◽  
Productivity Growth ◽  
Technical Change ◽  
Positive Association ◽  
Dairy Farms ◽  
Dynamic Panel Data ◽  
Productivity Change ◽  
Significant Positive Association ◽  
Technical Inefficiency ◽  
Explanatory Variables

Abstract Cow longevity is recognized as an important trait to improve farm economic performance while concurrently reducing environmental and societal impacts. However, there is an economic trade-off between longevity and herd genetic improvement, which may influence the evolution of dairy farms’ efficiency and productivity over time. This study used a panel data of 723 Dutch specialized dairy farms over 2007-2013 to empirically measure the effect of longevity on dynamic productivity change and its components. First, the productivity growth estimates were obtained using the Luenberger dynamic productivity indicator. Then, the estimates were regressed on longevity and other explanatory variables using dynamic panel data model. Results show that the average dynamic productivity growth was 1.1% per year, comprising of technical change (0.5%), scale inefficiency change (0.4%) and technical inefficiency change (0.2%). Longevity is found to have a statistically significant positive association with productivity growth and technical change, implying that farms with more matured cows were also those farms that recorded increased productivity through technical progress. However, it has a negative association with technical inefficiency change, which might follow from the reduced milk productivity of old cows. Dutch dairy farms have a potential to raise productivity growth by reducing technical inefficiency.

scholarly journals TRADE OPENNESS AND ECONOMIC GROWTH: A CAUSALITY TEST IN PANEL PERSPECTIVE

2017 ◽  
Vol 17 (2) ◽  
Author(s):  
Jamilah Idris ◽  
Zulkornain Yusop ◽  
Muzafar Shah Habibullah
Keyword(s):  
Economic Growth ◽  
Causal Relationship ◽  
Method Of Moments ◽  
Purchasing Power Parity ◽  
Trade Openness ◽  
Estimation Method ◽  
Dynamic Panel Data ◽  
Dynamic Panel ◽  
General Method Of Moments ◽  
General Method

Openness to trade has been one of the primary drivers stimulating growth. The goal of this particular study is to investigate the relationship between trade openness and economic growth in 87 selected countries which includes both Organizations for Economic Co-operation and Development (OECD) and developing countries for 1977–2011 periods. We used two measures of trade openness i.e. the ratio of trade openness (TO) typically spoke by exports plus imports in nominal value divided by GDP (nominal) which is commonly used in the literature, and trade openness in real (RO) which is defined as the sum of imports and exports in US$ relative to GDP in purchasing power parity US$ (real GDP). An empirical studywas conducted to determine the causal relationship between trade openness and growth in a panelperspective. We used a dynamic panel data estimation method i.e. the general method of moments (GMM). The empirical results reveal a bidirectional causal relationship for both developing and OECD countries. Our finding is consistent with the endogenous theory that increased openness leads to higher growth, which thus prompts expanded openness.Keywords: Openness; Economic Growth; Dynamic Panel General Method of Moments (GMM).

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