scholarly journals Migrant Remittances and Economic Growth: The Role of Financial Efficiency

2020 ◽  
pp. 48-59
Author(s):  
Ningaye Paul ◽  
Abba Yadou Barnabé ◽  
Balla Mekongo Célestin Ghislain
Keyword(s):  
Economic Growth ◽  
Negative Impact ◽  
Positive Impact ◽  
African Countries ◽  
Financial Efficiency ◽  
Middle Income ◽  
Middle Income Countries ◽  
Migrant Remittances ◽  
Long Term Impact

The objective of this paper is to examine the relationship between migrant remittances and economic growth by considering the role of financial efficiency in 34 African countries from 1995 to 2016. The methodology is based on a GMM system model and a Pooled Mean Group (PMG) on a sample of 34 African countries. The empirical results show us the following conclusions: (i) Migrant remittances and financial efficiency have a positive impact on economic growth. (ii) The interaction between remittances and financial efficiency has a negative impact on economic growth. (iii) Migrant remittances have a long-term impact on economic growth. (iv) The combined effect of migrant remittances and financial efficiency has a negative impact on economic growth. Moreover, this impact is more pronounced in low-and middle-income countries. To better benefit from migrant remittances, recipient countries need to focus on financial development.

scholarly journals Role of Governance in Debt-Growth Relationship: Evidence from Panel Data Estimations

2021 ◽  
Vol 13 (11) ◽  
pp. 5954
Author(s):  
Qamar Abbas ◽  
Li Junqing ◽  
Muhammad Ramzan ◽  
Sumbal Fatima
Keyword(s):  
Economic Growth ◽  
Public Debt ◽  
Negative Impact ◽  
Positive Impact ◽  
Linear Pattern ◽  
The Public ◽  
Mediating Role ◽  
National Output ◽  
State Governance

This paper provides an empirical analysis of the relationship between debt and national output mediated by a measure of the quality of state governance. Using WGIs dataset of 106 countries for the period 1996–2015, the paper analyzes the mediated effect of governance on debt-growth relationship. For this purpose, we use the fixed effect (LSDV) and system GMM estimation technique in order to overcome the possible problem of endogeneity. Results show the non-linear pattern between public debt and economic growth via governance. Although, public debt has negative impact on economic growth, but the results are statistically positive and significant when public debt is interacted with governance, which confirms that governance is a channel by which public debt influences economic growth. Moreover, we calculate the threshold of governance which shows that the public debt has positive impact on economic growth when the governance level is higher than the threshold and adversely affects the economic growth in the case of low level of governance than threshold. Evidence from this study reveals the fact that governance plays a mediating role in debt-growth relationship as there is a pattern of complementarity between public debt and governance: the higher the level of governance, the lesser the adverse effect of public debt on economic growth.

scholarly journals Foreign aid on economic growth in Africa: A comparison of low and middle-income countries

2015 ◽  
Vol 18 (4) ◽  
pp. 449-462 ◽  
Author(s):  
Aye Mengistu Alemu ◽  
Jin-Sang Lee
Keyword(s):  
Economic Growth ◽  
Foreign Aid ◽  
Low Income ◽  
Empirical Studies ◽  
Critical Role ◽  
Generalized Method Of Moments ◽  
African Countries ◽  
Middle Income ◽  
Middle Income Countries ◽  
Theoretical Hypothesis

Previous empirical studies on the effects of foreign aid on economic growth have generated mixed results that make it difficult to draw policy recommendations. The main reason for such mixed results is the choice of a single aggregate list of countries, regardless of the disparities in levels of development. This study therefore fills the development gap by disaggregating the African data into a panel of 20 middle- income and 19 low- income African countries over a period of 15 years between 1995 and 2010, and employing a dynamic generalized method of moments (GMM) model to address the dynamic nature of economic growth as well as the problems of endogeneity. The results of this study support the theoretical hypothesis that a positive relationship between aid and GDP growth exists, but only for low-income African countries, not middle-income ones. On the other hand, the study reveals that middle- income African countries tend to experience a greater impact on their economic growth from foreign direct investment (FDI) and natural resources revenues, mainly oil exports. This implies that the frequent criticism that foreign aid has not contributed to economic growth is flawed, at least in the case of low-income African countries. In fact, foreign aid has played a critical role in stimulating economic growth in such countries through supplementing domestic sources of finance such as savings, thus increasing the amount of investment and capital stock in them.

scholarly journals INVESTASI ASING LANGSUNG DAN PERTUMBUHAN EKONOMI DI WILAYAH ASEAN PERIODE 2004-2016

2019 ◽  
Vol 23 (2) ◽  
pp. 57-66
Author(s):  
Aditya Febriananta Putra ◽  
Suyanto . ◽  
Irzameingindra Putri Radjamin
Keyword(s):  
Economic Growth ◽  
Developing Countries ◽  
Foreign Direct Investment ◽  
Significant Role ◽  
Direct Investment ◽  
Negative Impact ◽  
Positive Impact ◽  
Accelerate Development ◽  
Fixed Capital Formation

Exertions to accelerate development carried out by developing countries in general are oriented towards improving or improving people’s lives. Developing countries are characterized as countries that lack capital, savings and investment. The role of Labor has a significant effect but has a negative impact on economic growth. Agriculture and Service also performance a significant role, despite having a positive impact on economic growth. While other variables, namely Fixed Capital Formation, Foreign Direct Investment, Export, Manufacture, and Fertility showed insignificant results on economic growth.

scholarly journals The Causal Relationship Between China-Africa Trade, China OFDI, and Economic Growth of African Countries

SAGE Open ◽  
2021 ◽  
Vol 11 (4) ◽  
pp. 215824402110648
Author(s):  
Emma Serwaa Obobisa ◽  
Haibo Chen ◽  
Emmanuel Caesar Ayamba ◽  
Claudia Nyarko Mensah
Keyword(s):  
Economic Growth ◽  
Low Income ◽  
Negative Impact ◽  
Empirical Studies ◽  
Generalized Least Squares ◽  
Causal Link ◽  
Sub Saharan Africa ◽  
African Countries ◽  
Middle Income ◽  
Sub Saharan

Recently, China has emerged as the largest trading partner and a significant source of investment in the African continent. Although there is consent on the increasing importance of China and Africa’s economic partnership, there are many controversies on how it affects African countries. Debates on China in Africa have, however, relied on grandiloquence rather than empirical studies. This study explores the causal link between China-Africa trade, China’s outward foreign direct (OFDI), and economic growth of 24 Sub-Saharan Africa countries from 1999 to 2018. The aggregated panel is classified into upper-middle-income, low-middle income, and low-income Sub-Saharan African countries. In the long run, key findings from the feasible generalized least squares (FGLS) estimator unveiled that; (i) China-Africa trade negatively contributes to economic growth among all panels. (ii) China’s OFDI improves economic growth in the low middle and low-income African countries whereas a significant negative liaison is evidenced in the upper-middle-income African countries. (iii) Labor force have a negative impact on economic growth whiles gross capital formation is evidenced to positively impact economic growth at all the panels. The Dumitrescu and Hurlin Granger causality unveiled a one-sided causal link from China-Africa trade to economic growth at all panels. The study proposes policy recommendations based on the results.

scholarly journals The Potential Role of Community Actors in The Response Against COVID-19: Lessons From Three African Countries, Tanzania, Uganda and Zambia

2021 ◽  
Author(s):  
Joseph Mumba Zulu ◽  
Chama Mulubwa ◽  
Nathanael Sirili ◽  
Adam Silumbwe ◽  
Malizgani Paul Chavula ◽  
...  
Keyword(s):  
Health Systems ◽  
Potential Role ◽  
Behavioural Change ◽  
Early Response ◽  
African Countries ◽  
Middle Income ◽  
Middle Income Countries ◽  
Community Health Systems ◽  
Made In

Abstract Objective With the spread of COVID-19 to most low-and middle- income countries, global concerns arise on how to respond to the pandemic. We seek to highlight the early response to COVID-19 of Tanzania, Uganda and Zambia and draw lessons on how community actors could be engaged in the global efforts to prevent its spread and resurgence. This is envisioned to guide COVID-19 prevention efforts as well as implementation of interventions, especially in areas with relaxed, no or partial lockdown measures. ResultsCommunity actors can be useful in the promotion of behavioural change including consistent use of face masks, handwashing, social distancing, as well as act as whistle-blowers who identify new residents, report suspected COVID-19 cases and those breaking self-quarantine directives. Furthermore, community actors can encourage adherence to government directives on COVID-19 prevention through integrating COVID-19 information into their routine services. Countries across the globe have the opportunity to tap into the potential role of community actors, especially as we move towards more inclusive health systems. Increased involvement of community health systems is vital in sustaining the gains that have been made in areas where COVID-19 cases have reduced.

scholarly journals Impact of Population Growth on Economic Growth in Africa: A Dynamic Panel Data Approach (1980 -2015)

2018 ◽  
Vol 6 (4) ◽  
Author(s):  
Amade Peter ◽  
Ibrahim H. Bakari
Keyword(s):  
Economic Growth ◽  
Panel Data ◽  
Population Growth ◽  
Negative Impact ◽  
Positive Impact ◽  
Dynamic Panel Data ◽  
African Countries ◽  
Dynamic Panel ◽  
System Gmm ◽  
The Impact

This study examines the impact of population growth on the economic growth of African countries using panel data approach from 1980 -2015. The impact of population growth on economic growth is still largely controversial at national and regional levels. The study used annual secondary data of fifty three (53) African countries sourced from the World Development Indicators database. Data were collected for economic growth, proxied by GDP, population growth, fertility rate, crude death rate and inflation rate. The data were analyzed using descriptive statistics, as well as dynamic panel models of difference and system GMM. The results of the difference and system GMM suggest that population growth exerts a positive impact on economic growth of Africa while fertility has a negative impact on economic growth of Africa. The paper concludes and recommends that population growth impacts positively on economic growth and thus African countries should adopt and implement pragmatic policy measures that will enhance the productivity of its population so as to reap more demographic dividends.

scholarly journals What is the impact of financial depth on economic growth within middle income countries?

2021 ◽  
Vol 10 (1) ◽  
pp. 122-130
Author(s):  
Abdulaleem Isiaka ◽  
Abdulqudus Isiaka ◽  
Abdulqadir Isiaka ◽  
Omotomiwa Adenubi
Keyword(s):  
Economic Growth ◽  
Global Financial Crisis ◽  
Negative Impact ◽  
Gdp Growth ◽  
Middle Income ◽  
Average Growth ◽  
Dummy Variables ◽  
Middle Income Countries ◽  
Financial Depth ◽  
The Impact

 This paper utilizes the Least Squares Dummy Variables (LSDV) technique in investigating the effect of financial depth on economic growth within a sample of middle-income countries, over the period 2005–2017. The research finds that financial depth has a negative impact on real GDP growth within middle-income countries. This result is robust to the use of alternative measures of financial depth, the use of per capita GDP growth as a proxy for economic growth, the inclusion of dummy variables to control for the 2007–2010 global financial crisis, the exclusion of countries with high average growth as well as across income levels. Based on its findings, this study recommends the need for robust regulations to ensure that the credit facilities of domestic financial institutions are channeled towards productive investments rather than debt servicing.

scholarly journals The Role of Global Economic Growth in Pakistani Agri-Food Exports

2011 ◽  
Vol 50 (3) ◽  
pp. 245-256 ◽  
Author(s):  
Zahoor Ul Haq Zahoor Ul Haq ◽  
Mohamed Gheblawi ◽  
Safdar Muhammad
Keyword(s):  
Economic Growth ◽  
Fixed Effects ◽  
Developing Economies ◽  
Likelihood Estimation ◽  
Food Product ◽  
Middle Income ◽  
Middle Income Countries ◽  
Income Elasticities ◽  
Global Economic Growth

This analysis uses least squares and Heckman maximum likelihood estimation procedures with fixed effects to explore the role of economic growth in 36 developed and developing economies—categorised as low-, lower-middle-, upper-middle-, and high-income—in explaining their agri-food import of 29 products from Pakistan during 1990 to 2000. We reject the hypothesis that the economic growth of these economies does not influence Pakistani agri-food product exports. However, the estimated income elasticities are statistically elastic only for lower-middle income countries, suggesting that their expenditure on Pakistani agri-food exports will increase disproportionately as their economies grow. Hence, lower-middle-income countries provide good export opportunities for Pakistan’s agri-food products. JEL Classifications: F14, Q17 Keywords: Economic Growth, Agri-food Trade, Income Elasticities, Developing Countries

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