Optimal Aggregate Consumption for Economic Growth

AbstractThe Southern Region of Europe is economically well-developed with highly industrialized urban areas and with great agricultural potential. The empirical analysis is based on an econometric assessment that measures the impact of the VAT on the rate of economic growth for years between 1996 and 2017. The empirical evidence highlighted a significant positive impact of VAT on economic growth, but a poor and ineffective use of the tax revenues during the period under review. Moreover, evidence revealed relatively high rates of VAT in the countries analyzed, with negative impact on the aggregate consumption and a diminishing effect of the consumer’s income.

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Public Perception of the Effects of Poverty on Economic Growth in Ghana

Advances in Social Sciences Research Journal ◽

10.14738/assrj.85.9958 ◽

2021 ◽

Vol 8 (5) ◽

pp. 172-194

Author(s):

Benjamin B. Omoniyi ◽

O. O. Ogunwole ◽

S. O. Owolabi

Keyword(s):

Economic Growth ◽

Low Income ◽

Logit Model ◽

Public Perception ◽

School Enrollment ◽

Primary Data ◽

Consumption Expenditure ◽

Aggregate Consumption ◽

The Poor ◽

Determinants Of Economic Growth

The paper examined public perception of the effects of poverty on economic growth in Ghana. It specifically examined public perception on the relationship between poverty and economic growth in Ghana using a combination of descriptive statistics and Logit Model to analyse the primary data collected. The result revealed that poverty does not lower investment, per capita income was not high enough to reflect Ghana’s resources, it was also discovered that poverty programmes are effective and standard of living were inadequate. The paper further discovered that unemployment rate was not too high in Ghana. Corruption does not pose any threat to poverty and economic growth. There existed low income inequality between the rich and the poor but income was not evenly distributed while inflation does not increased the plight of the poor or deteriorates the living standard of the poor. The result further discovered that government performance was inadequate, lifespan was low, Ghana was able to meet MDGs goal by the end of 2015 but may not be able to sustain the achievement beyond 2015. Above all, poverty decisively slowed down the pace of economic growth in Ghana. The result of the Logit model showed that unemployment, corruption, secondary school enrollment, government policy, life-expectancy and poverty retarded economic growth while investment, aggregate consumption expenditure, pattern of income distribution and inflation, enhanced economic growth in Ghana. The result further revealed that only investment, aggregate consumption expenditure and inflation are the determinants of economic growth in Ghana. The paper concluded that poverty slowed down the pace of economic growth in Ghana. The paper therefore recommends that government should introduce and maintain policies that will permit improved relationships between poverty and other variables except investment, welfare and inflation so that they can positively and significantly contribute to increase economic growth in Ghana.

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Real Exchange Rate, Effective Demand, and Economic Growth

Reflexões Econômicas ◽

10.36113/rec.v4i1.2559 ◽

2019 ◽

Vol 4 (1) ◽

pp. 1-31

Author(s):

Francisco Martínez-Hernández

Keyword(s):

Economic Growth ◽

Developing Countries ◽

Exchange Rate ◽

Real Exchange Rate ◽

Aggregate Demand ◽

Aggregate Consumption ◽

Export Sector ◽

Short Run ◽

Main Components ◽

Stock Flow

This paper seeks to assess the effects of an undervalued currency on economic growth. Based on a reformulation of Rodrik’s undervaluation index, our econometric results suggest that real exchange rate undervaluation has, to differing degrees, been able to enhance the economic growth of developed and developing countries. Nevertheless, when we disaggregate the main components of aggregate demand for different clusters of developed and developing countries using the Stock Flow Consistent approach (SFC), we find that in general, an undervalued currency has expansionary and contractionary effects in the short-run, specifically via the export sector and the level of aggregate consumption, respectively. This paper also estimates the effects of an undervalued currency on the level of investment and the trade balance.

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Dynamic Nexus between Economic Growth and Total Reserve and Aggregate Consumption Expenditure: An ARDL Approach

International Journal of Scientific and Engineering Research ◽

10.14299/ijser.2020.10.02 ◽

2020 ◽

Vol 11 (10) ◽

pp. 683-688

Author(s):

Md. Obidul Haque ◽

Saddam Hossain ◽

Mehedi Hasan

Keyword(s):

Economic Growth ◽

Consumption Expenditure ◽

Explanatory Variables ◽

Aggregate Consumption ◽

Distributed Lag ◽

Autoregressive Distributed Lag ◽

Ardl Approach ◽

Short And Long Term ◽

Bound Test

This paper tries to see the association among reserve, aggregate consumption expenditure, and economic growth by employing the autoregressive distributed lag (ARDL) model. Both the explanatory variables such as consumption and reserve are statistically significant. The consumption expenditure is strongly affecting the economic growth both in the short and long-term. Performing the ADF and PP test the variables are integrated order of one I(1). The bound test confirmed that the long-term association exists between the variables. There Â¬is a unidirectional association found among the variables.

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