THE IMPACT OF MACROECONOMIC POLICY ON ECONOMIC GROWTH IN SUB-SAHARA AFRICAN COUNTRIES

The prime purpose of this article was to investigate the monetary and fiscal policy interaction and their impact on economic growth in a panel of 35 sub-Saharan African economies from 1980 to 2018. To achieve this objective, the study employs a Panel Vector Autoregression (PVAR) estimation technique. Using a PVAR approach, we show that an expansionary fiscal policy through tax revenue and an unexpected expansionary monetary policy via broad money supply have a positive effect on gross national income, whereas an expansionary fiscal policy through the government spending have a contractionary impact on gross national income. We also find that an unexpected expansionary monetary policy via real exchange rate has no effect on gross national income. Finally, we show evidence that there is a negative and significant relationship between fiscal policy and monetary policy and thus supporting the need of policy coordination between fiscal and monetary policies. Therefore, to have continuous and sustainable economic growth, the coordination of monetary and fiscal policies is vital, and the lack of this coordination leads to a sharp downturn of overall economic performance, even can hurt the economy The empirical results also show that the variation in gross national income is more explained by fiscal policy variables than monetary policy variables which show fiscal policy is more effective than monetary policy in influencing gross national income.

The Paradox of Thrift: A Case Study of United States of America

Vermann (2012) and Thies (1996)’s papers indicate that the paradox of thrift is no longer in vogue in United States of America (USA). This paper argues that the paradox of thrift is still applicable to USA even though she is operating with sufficient demand. The main objective of this paper is to determine whether the paradox of thrift is applicable to USA after the Great Depression. In doing this, a vector error correction model was estimated using annual data of gross national income, gross domestic saving, gross domestic investment and final consumption expenditure from 1971 to 2020. The results of the investigation showed that final consumption expenditure and gross domestic saving increase when gross national income increases. Gross national income falls and current saving is unchanged when previous saving rises. The paradox of thrift is applicable to USA after the Great Depression. The target of economic policy should be gross national income and not gross domestic saving because naturally both final consumption expenditure and gross domestic saving will increase if gross national income increases in USA.

Kabir Wealth Code: The combined effect of emotional awareness (EA) and intelligence quotient (IQ)

Background: Intelligence quotient (IQ) is a measure of intellectual ability of performing, comprehension, and learning. Previous studies reported that intelligence measures predict various measures of job performance and income. Emotional awareness (EA) is the measure of emotional capacity to recognize and make sense of one’s emotions, as well as those of others. A high level of emotional awareness (EA) indicates one can learn from expressed emotions quickly. Both IQ and EA are important for personal and professional success.Objective: This study tests the hypothesis that the average national income rank is best predicted by the combined effect of the population's average intelligence quotient (one's ability to perform and learn) and emotional awareness (ability to recognize and make sense of emotions).Method: The population’s average intelligence quotient (IQ), emotional awareness (EA), and indices of good governance, which include corruption perception index and educational expenses for each country, were obtained from public data sources. The outcome variable was per capita gross national income. All the variables that are statistically significant in univariate analysis were included in the multivariate regression analyses but excluded from the final model if not statistically significant.Result: The total number of countries included in the final analysis was 81 because of missing values in different variables. Intelligence quotient (IQ) and emotional awareness (EA) were found to be highly correlated, at 0.77 and 0.32 respectively, with the per capita gross national income. The independent effects of intelligence quotient (IQ) and emotional awareness (EA) were found significant in the multivariate model after adjusting for measures of good governance. The R square value for the final multivariate model was 0.82. The corruption perception index (CPI) and educational expenses were strongly correlated with other measures of good governance such as democracy index, functioning of government, electoral process and pluralism, political participation, and civil liberty, but these variables were found not significant in the multivariate model. Conclusion: The study concludes the effect of intelligence quotient (IQ) and emotional awareness (EA) are complementary to each other but intelligence quotient (IQ) is a stronger predictor than emotional awareness (EA) for gross national income or wealth. We also find that indicators of good governance, including corruption perception index and educational expenses, have important associations with per capita gross national income. This study implies a nation may build more wealth if the educational system focuses on developing emotional awareness in addition to intelligence. The study concludes the effect of intelligence quotient (IQ) and emotional awareness (EA) are complementary to each other but intelligence quotient (IQ) is a stronger predictor than emotional awareness (EA) for gross national income or wealth. We also find that indicators of good governance, including corruption perception index and educational expenses, have important associations with per capita gross national income. This study implies a nation may build more wealth if the educational system focuses on developing emotional awareness in addition to intelligence.

The Paradox of Thrift: Empirical Evidence in Nigeria

Vermann (2012) and Thies (1996)’s papers indicate that the paradox of thrift is no longer in vogue. This paper argues that the paradox of thrift is applicable to the developing country like Nigeria which is operating with deficient demand. The main objective of this paper is to determine whether the paradox of thrift is applicable to Nigeria. In doing this, a vector error correction model was estimated using annual data of gross national income, gross domestic saving, gross domestic investment and final consumption expenditure from 1986 to 2019. The results of the investigation showed final consumption expenditure and gross domestic saving increase when national income increases. Gross national income falls and current saving is unchanged when previous saving rises. The paradox of thrift is applicable to Nigeria. The target of economic policy should be gross national income and not gross domestic saving because naturally both final consumption expenditure and gross domestic saving will increase if gross national income increases in Nigeria.

Wealth Code Unlocked: The Combined Effect of Emotional Intelligence and Intelligence Quotient

Background: Intelligence quotient (IQ) is a measure of intellectual ability of performing, comprehension, and learning. Previous studies reported that intelligence measures predict various measures of job performance and income. Emotional awareness (EA) is the measure of emotional capacity to recognize and make sense of one’s emotions, as well as those of others. A high level of emotional awareness (EA) indicates one can learn from expressed emotions quickly. Both IQ and EA are important for personal and professional success. Objective: This study tests the hypothesis that the average national income rank is best predicted by the combined effect of the population's average intelligence quotient (one's ability to perform and learn) and emotional awareness (ability to recognize and make sense of emotions). Method: The population’s average intelligence quotient (IQ), emotional awareness (EA), and indices of good governance, which include corruption perception index and educational expenses for each country, were obtained from public data sources. The outcome variable was per capita gross national income. All the variables that are statistically significant in univariate analysis were included in the multivariate regression analyses but excluded from the final model if not statistically significant. Result: The total number of countries included in the final analysis was 81 because of missing values in different variables. Intelligence quotient (IQ) and emotional awareness (EA) were found to be highly correlated, at 0.77 and 0.32 respectively, with the per capita gross national income. The independent effects of intelligence quotient (IQ) and emotional awareness (EA) were found significant in the multivariate model after adjusting for measures of good governance. The R square value for the final multivariate model was 0.82. The corruption perception index (CPI) and educational expenses were strongly correlated with other measures of good governance such as democracy index, functioning of government, electoral process and pluralism, political participation, and civil liberty, but these variables were found not significant in the multivariate model. Conclusion: The study concludes the effect of intelligence quotient (IQ) and emotional awareness (EA) are complementary to each other but intelligence quotient (IQ) is a stronger predictor than emotional awareness (EA) for gross national income or wealth. We also find that indicators of good governance, including corruption perception index and educational expenses, have important associations with per capita gross national income. This study implies a nation may build more wealth if the educational system focuses on developing emotional awareness in addition to intelligence.

Keluarnya Britania Raya dari Keanggotaan Uni Eropa dan Implikasinya Bagi Perekonomian

Pada Juni 2016, warga Inggris memilih untuk meninggalkan Uni Eropa, fenomena ini dikenal dengan nama Britania Exit yang disingkat dengan Brexit. Tulisan ini bertujuan untuk mengkaji pengaruh Britania Exit (Brexit) terhadap perekonomian Britania Raya, yaitu Gross National Income (GNI) dan Gross National Product (GNP) berdasarkan ekspor-impor, Foreign Direct Investment (FDI) dan ketenagakerjaan. Referendum menunjukkan bahwa lebih dari lima puluh persen warga Inggris memilih keluar dari Uni Eropa. Pasca politik British Exit (Brexit). Referendum Brexit terlihat dari alasan fundamental yaitu regulasi pasar ekonomi Inggris sendiri dan masalah imigrasi. Itu membuat Inggris kehilangan lebih banyak karena akses preferensial yang hilang ke pasar Uni Eropa yang besar. Tulisan ini menganalisis dengan menggunakan teori pertumbuhan ekonomi dan konsep kepentingan nasional. Metode penelitian yang digunakan adalah metode penelitian kualitatif, dengan sumber data sekunder yang didapatkan dari berita online, buku, jurnal, dan sumber-sumber tertulis lainnya. Teknik pengumpulan data yang digunakan adalah studi kepustakaan (library research), dengan teknik analisis data yang dimulai dari reduksi data, penyajian data, hingga penarikan kesimpulan. Adapun hasil dan pembahasan dari tulisan ini adalah kepentingan nasional Inggris yang berupa persoalan kedaulatan menjadi alasan dari Brexit, meskipun hal tersebut berdampak terhadap penurunan pertumbuhan ekonomi yang dialami oleh Inggris.