Is Fiscal Deficit Valid for Long Run Economic Growth in Nigeria? An Empirical Investigation

2012 ◽  
Author(s):  
Kehinde Samuel Alehile
Keyword(s):  
Economic Growth ◽  
Empirical Investigation ◽  
Fiscal Deficit ◽  
Long Run

Financial Development and Economic Growth in Asian Countries: A Panel Empirical Investigation

2020 ◽  
Vol 6 (2) ◽  
pp. 76
Author(s):  
Cher Chen ◽  
GholamReza Zandi Pour ◽  
Edwin R. de Los Reyes
Keyword(s):  
Economic Growth ◽  
Financial Development ◽  
Quantitative Research ◽  
Empirical Investigation ◽  
Time Frame ◽  
Asian Countries ◽  
African Region ◽  
Dynamic Panel ◽  
Unit Root Testing ◽  
Long Run

This study aimed to evaluate the association of financial development and economic growth by considering the case of 10 Asian countries. The study used quantitative research design where the preliminary testing was conducted using descriptive statistics and unit root testing. The sample size comprised of 10 emerging Asian countries (India, China, Malaysia, Philippines, Pakistan, Thailand, Singapore, Bhutan, Vietnam, and Bangladesh) and the time-frame for the study was 1990 to 2018. The main techniques of analysis were Pedroni cointegration, dynamic panel least squares (DOLS) and Granger Causality. This study concluded that long-run equilibrium existed between financial development and economic growth. The research was limited to the case of Asian countries, therefore, in future, the evaluation of European countries can be conducted or African region can also be undertaken into consideration.

scholarly journals Does Institutions Effect Growth in Pakistan? An Empirical investigation

2019 ◽  
Vol 5 (2) ◽  
pp. 1
Author(s):  
Danish Ahmed Siddiqui ◽  
Qazi Masood Ahmed
Keyword(s):  
Economic Growth ◽  
Policy Implication ◽  
Empirical Investigation ◽  
Rent Seeking ◽  
Economic Aspects ◽  
Long Run ◽  
Social Technologies ◽  
Risk Reducing

This paper presents an index of institutionalized social technologies for Pakistan, covering its two main dimensions namely Risk reducing technologies and Anti Rent seeking technologies and in turn covers several social, institutional, political and economic aspects. It is also analyzed empirically whether the overall index as well as sub-indexes constructed to measure the single dimensions affects economic growth. The results show that over all, institutions promote growth in long run for Pakistan. Therefore, for a policy implication, success of any policy could be influenced by the soundness of institutions.

A CONTEMPORARY RE-EXAMINATION OF MALAYSIA’S ECONOMIC GROWTH: THE ISSUES OF EQUITY, EFFICIENCY AND LIBERALIZATION

2017 ◽  
Vol 62 (02) ◽  
pp. 509-530 ◽  
Author(s):  
AZFAR HILMI BAHARUDIN ◽  
YAP SU FEI
Keyword(s):  
Economic Growth ◽  
Income Inequality ◽  
Least Squares ◽  
Financial Development ◽  
Direct Investment ◽  
Positive Relationship ◽  
Empirical Investigation ◽  
Ordinary Least Squares ◽  
Statistical Relationship ◽  
Long Run

This paper is an empirical investigation on economic growth for Malaysia, with focus on income inequality, foreign direct investment (FDI), financial development and trade. Co-integrating regression procedures namely, fully modified ordinary least squares (FMOLS), canonical co-integrating regression (CCR) and dynamic ordinary least squares (DOLS) were employed. Positive relationship between growth with financial development and trade are found to be consistent across all estimations. Income inequality on the other hand though negative, does not seem to exhibit robust significant statistical relationship with growth. The orders of integration for variables used have been demonstrated to be governed such that a long-run relationship prevails.

scholarly journals Economic Growth And Carbon Emissions In South Africa: An Empirical Investigation

2011 ◽  
Vol 10 (7) ◽  
pp. 75 ◽  
Author(s):  
Nicholas M. Odhiambo
Keyword(s):  
Economic Growth ◽  
South Africa ◽  
Energy Consumption ◽  
Co2 Emissions ◽  
Carbon Emissions ◽  
Empirical Investigation ◽  
Output Growth ◽  
Bounds Testing ◽  
Conservation Policies ◽  
Long Run

In this paper we examine the causal relationship between CO2 emissions and economic growth in South Africa - using the newly developed ARDL-Bounds testing approach. We incorporate energy consumption in a bivariate causality setting between CO2 emissions and economic growth, thereby creating a simple trivariate model. Our empirical results show that there is a distinct unidirectional causal flow from economic growth to carbon emissions in South Africa. We also find that energy consumption Granger-causes both carbon emissions and economic growth. We recommend that energy conservation policies, as well as appropriate forms of renewable energy, should be explored in South Africa in order to enable the country to reduce its carbon emission footprint without necessarily sacrificing its output growth. The results apply irrespective of whether the causality is estimated in the short or in the long run.

scholarly journals Re-Visting the Electricity-Growth Nexus in South Africa

2016 ◽  
Vol 11 (1) ◽  
pp. 97-111 ◽  
Author(s):  
Andrew Phiri ◽  
Bothwell Nyoni
Keyword(s):  
Economic Growth ◽  
South Africa ◽  
South African ◽  
Empirical Investigation ◽  
Research Study ◽  
Electricity Consumption ◽  
Domestic Investment ◽  
Long Run ◽  
Trivariate Analysis

AbstractThis research study contributes to the ever-expanding literature by examining multivariate cointegration and causality relationships between electricity consumption, economic growth and other growth determinants for quarterly South African data collected between 1994/Q1 – 2014/Q4. The motivation behind this current research case study becomes apparent when taking into consideration that no previous studies have gone further than bivariate and trivariate analysis in investigating the electricity-growth nexus in South Africa. In conducting our empirical investigation, our obtained empirical results are two-fold in nature. Firstly, we find significant multivariate long-run cointegration relationships between economic growth, electricity consumption and other growth determinants. Secondly, our empirical analysis offers support in favour of the neutrality hypothesis, that is, the notion of no causal effects existing between electricity consumption and economic growth in the long-run. However, we find that exports directly cause electricity consumption whereas economic growth, domestic investment and employment levels causally flow to exports.

scholarly journals DÉFICIT FISCAL, CRECIMIENTO ECONÓMICO E INFLACIÓN, ¿UNA RELACIÓN EXÓGENA?

2020 ◽  
Vol 79 (312) ◽  
pp. 89
Author(s):  
Federico Novelo Urdanivia ◽  
Nancy Muller Durán
Keyword(s):  
Economic Growth ◽  
Government Expenditure ◽  
Negative Relationship ◽  
Sole Source ◽  
Output Growth ◽  
Fiscal Deficit ◽  
Economic Growth Rate ◽  
Long Run ◽  
The Government ◽  
The Relationship

<p>En este artículo analizamos la relación entre el crecimiento económico, el déficit fiscal y la inflación en México, considerando el periodo en que ha estado vigente la autonomía del Banco de México respecto del gobierno. Estimamos dos modelos CVAR para demostrar que si el gasto de gobierno es endógeno al crecimiento económico, entonces el déficit fiscal no es necesariamente la única causa de la inflación. Nuestros resultados muestran que, aún sin causalidad en el sentido de Granger, existe una relación negativa de largo plazo entre el gasto de gobierno y la inflación. De manera conjunta, ambos modelos revelan que a mayor crecimiento económico, mayor gasto fiscal y menor inflación.</p><p> </p><p align="center">FISCAL DEFICIT, ECONOMIC GROWTH AND INFLATION, AN EXOGENOUS RELATIONSHIP?</p><p align="center"><strong>ABSTRACT</strong><strong></strong></p><p>This paper deals with the relationship between output growth, fiscal deficit and the rate of inflation in Mexico for the period of the independence of Banco de México. A couple of CVAR models are estimated with the aim of testing whether the government expenditure is endogenous to economic growth, in which case the fiscal deficit will not necessarily be the sole source of inflation. According to our empirical results, it is shown that there is a long-run negative relationship between government spending and inflation, without involving a Granger causality. Both models jointly reveal that the higher the economic growth rate, the larger government expenditure and the lower the rate of inflation.</p>

Fiscal Deficit And Economic Growth, Nigeria Experience

2015 ◽  
Vol 3 (11) ◽  
pp. 6-15
Author(s):  
Ogunsakin Sanya ◽  
Lawal N Abiola
Keyword(s):  
Economic Growth ◽  
Capital Accumulation ◽  
Capital Expenditure ◽  
Unit Root Test ◽  
Secondary Data ◽  
Annual Reports ◽  
Fiscal Deficit ◽  
Distributed Lag ◽  
Long Run ◽  
Integration Test

This study examines impact of fiscal deficit on the growth of Nigerian economy using co-integration and error correction. Secondary data were gathered from various sources such as; the Central Bank of Nigeria statistical bulletin, economic and financial review monthly and annual reports and statement of accounts for various years. The time series property of the data employed, are first to be investigated. This is then followed by testing for co-integrated variables. From the unit root test, the results clearly indicate that the variables are integrated of the same order at first difference. Also, from the multivariate co-integration test, within the Auto-Regressive Distributed Lag (ARDL) the results indicate that there are, at most, two co-integrating vectors. This implies that there exists a stable long-run relationship between economic growth and budgeting components. From the study, it was discovered that deficit budget is one of the indicators of macroeconomic instability and significantly discourage human capital accumulation. However, recommendations are made based on the findings among which are that government should set its priorities right, be more committed to budget implementation and to pay more attention to capital expenditure geared towards growth.

Is Fiscal Deficit Essential for Stimulating Economic Growth in Developing Economies? Theory and Empirical Evidence from India

2021 ◽  
Keyword(s):  
Economic Growth ◽  
Developing Economies ◽  
Negative Impact ◽  
Gdp Growth ◽  
Fiscal Deficit ◽  
Causality Test ◽  
Long Run ◽  
Integration Test ◽  
The Government ◽  
The Impact

The primary purpose of this paper was to assess the impact of fiscal deficit on the economic growth of the Indian economy and find out the causality between fiscal deficit and economic growth from 1981-82 to 2019-20. To analyse the long-run relationship between the variables Johansen Co-integration test was used; after verifying the existence of long-run relationship among variables, the Vector Error Correction Model (VECM) was used, and the Granger Causality test was also used for investigating the direction of causality between pair of variables. The findings of the study supported the ideology of classical economists in which they neglected the government intervention for the growth and development of an economy. The results showed that in long run, fiscal deficit had a significant negative impact on economic growth as one percent increase in fiscal deficit demoted the GDP growth rate by 0.075 percent, whereas in the short run, the impact was also found negative, but it was significant only one lag. Simultaneously, there was unidirectional causality found from fiscal deficit to GDP growth.

scholarly journals The Causal Relationship Between Institutions and Economic Growth: An Empirical Investigation for Pakistan Economy

2019 ◽  
Vol 5 (1) ◽  
pp. 1 ◽  
Author(s):  
Danish Ahmed Siddiqui ◽  
Qazi Masood Ahmed
Keyword(s):  
Economic Growth ◽  
Granger Causality ◽  
Economic Performance ◽  
Empirical Investigation ◽  
Institutional Quality ◽  
Granger Causality Test ◽  
Causality Test ◽  
Long Run ◽  
Study Results ◽  
Short Run

This paper investigates relationship between institutional quality and economic performance in Pakistan using the Johansen-Juselius cointegration technique and the Granger causality test. The study results indicate that Institutions and growth are cointegrated and thus exhibit a reliable long run relationship. The Granger causality test findings indicate that the causality between Institutions and growth is uni-directional.However, there is no short run causality from Institutions to growth and vice versa. Therefore, as a policy implication that institutional quality may cause to the sustainable increase in country’s income in the long run, and success of any policy could be influenced by the soundness of institutions.

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