Financial Depth, Gross Fixed Capital Formation and Economic Growth: Empirical Analysis of 18 Asian Economies

2018 ◽  
Author(s):  
John Boamah ◽  
Felix Atanga Adongo ◽  
Richmond Essieku ◽  
John Amo Lewis Jr.
Keyword(s):  
Economic Growth ◽  
Empirical Analysis ◽  
Capital Formation ◽  
Fixed Capital ◽  
Financial Depth ◽  
Asian Economies ◽  
Fixed Capital Formation

The Impact of Total Factor Productivity on Economic Growth for Developed and Emerging Countries: A Second-generation Panel Data Analysis

2017 ◽  
Vol 11 (4) ◽  
pp. 404-417 ◽  
Author(s):  
Ömer Yalçınkaya ◽  
İbrahim Hüseyni ◽  
Ali Kemal Çelik
Keyword(s):  
Economic Growth ◽  
Panel Data ◽  
Total Factor Productivity ◽  
Second Generation ◽  
Capital Formation ◽  
Emerging Countries ◽  
Fixed Capital ◽  
Factor Productivity ◽  
Fixed Capital Formation ◽  
The Impact

This article investigates the determinants of economic growth and also seeks to determine whether or not the impact of total factor productivity (TFP) changes with respect to the level of development for selected countries. In this manner, the present study examines the impact of gross fixed capital formation, employed labour and the TFP of G-7, G-12 and G-20 countries on real GDP per capita using second-generation panel data analyses over the period 1992–2014. The results reveal that TFP has a greater impact on economic growth than fixed capital formation and employed labour for all country groups. Furthermore, the impact of TFP on economic growth was found to be greater for developed countries than for emerging countries. JEL Classification: C21, C22, C23

scholarly journals Tax Revenue, Capital Formation, and Economic Growth in Nigeria

2021 ◽  
Vol 12 (1) ◽  
pp. 101
Author(s):  
A. Abiola Oluwatobi ◽  
F. Adegbie Festus ◽  
O. Ogundajo Grace
Keyword(s):  
Economic Growth ◽  
Time Series Data ◽  
Causal Effect ◽  
Capital Formation ◽  
Fixed Capital ◽  
Sustainable Growth ◽  
Series Data ◽  
Tax Revenue ◽  
Fixed Capital Formation ◽  
The Government

Economic growth drivers aimed at stimulating and stabilizing the economies of the countries to engender sustainable growth. Studies have shown that Nigeria has been plagued with stunted and faltering economic growth over the years. Tax and other relevant macroeconomic policies are implemented by the government to smoothen out economic fluctuations but this has not been fully harnessed. A causal-effect study was conducted between tax revenue, gross fixed capital formation and economic growth using a 38-year time series data from 1981 to 2018 derived from CBN statistical bulletin. It was found that tax revenue (TR) had significant positive effect on Gross Domestic Product and Gross Fixed Capital Formation (GFCF) significantly controls the relationship between TR and GDP. It is evidenced that the country relied heavily on taxes as major source of revenue. The study recommended that government should widen its tax net, creates expansionary measures to enhance its tax revenue in order to boost its GDP. The government should also create an enabling environment for economy diversifications in order to increase revenue generated via other means than taxes in order to spur economic growth and avoid over-reliance on taxes.

scholarly journals Impact of Trade Openness on Economic Growth: A Case Study of Pakistan'

2017 ◽  
Vol 3 (1) ◽  
pp. 57-68
Author(s):  
Rashid Ahmad ◽  
Kashif Raza ◽  
Sobia Saher
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
Negative Impact ◽  
Trade Openness ◽  
Capital Formation ◽  
Fixed Capital ◽  
Series Data ◽  
Fixed Capital Formation ◽  
The Impact

Purpose: This paper estimates the impact of trade openness and economic growth in Pakistan by using time series data from period of 1975-2014. Econometric method was applied to estimate the impact of trade openness on economic growth. Gross fixed capital formation (proxy of investment), Foreign direct investment, Imports, Exports & trade openness (proxy of trade openness to check the volume of trade of a country) is used as explanatory variables while gross domestic product is treated as dependent variable in this study. Johansson co. integration approach developed by Johannes & Jeslius (1988) is used to evaluate the long run relationship among variables in this study. The results suggest that trade openness, imports, exports and foreign direct investment cast have positive impact on economic growth while on the other hand; gross fixed capital formation &labor force has negative impact on economic growth.

scholarly journals Analysis of the Gravity Movement and Decoupling State of China’s CO2 Emission Embodied in Fixed Capital Formation

Energies ◽  
2020 ◽  
Vol 13 (24) ◽  
pp. 6655
Author(s):  
Xi Zhang ◽  
Ziyan Gao ◽  
Yong Geng ◽  
Yen Wah Tong ◽  
Harn Wei Kua ◽  
...  
Keyword(s):  
Economic Growth ◽  
Co2 Emissions ◽  
Co2 Emission ◽  
Yellow River ◽  
Capital Formation ◽  
Fixed Capital ◽  
Embodied Energy ◽  
River Region ◽  
Fixed Capital Formation ◽  
Northwestern Region

Investment is an essential engine of economic growth and a major source of China’s CO2 emission. It is therefore crucial to explore the gravity movement and decoupling state of China’s CO2 emission embodied in fixed capital formation (FCF). This study aims to estimate China’s CO2 emissions embodied in various categories of FCF by using input–output tables. The gravity model and Shapley decomposition method are used to explore the gravity movement and regional contributions for China’s CO2 emissions embodied in FCF. Then, the Tapio decoupling model and logarithmic mean Divisia index (LMDI) method are combined to uncover the decoupling relationship between CO2 emissions and economic growth embodied in FCF and the corresponding driving factors. The results show that China’s CO2 emissions embodied in FCF experienced a rapid increase during 2002–2012 and remained almost stable during 2012–2017. The gravity center for CO2 emissions embodied in FCF moved toward northwest during 2002–2015, with the northwestern region and middle Yellow River region being the main engine regions. The relations between CO2 emissions and added values embodied in various categories of FCF were weak decoupling during 2002–2017. Investment scale was the major factor inhibiting the decoupling, while embodied energy intensity was the major factor promoting the decoupling. Finally, several policy recommendations are proposed based on these findings.

scholarly journals The Influences of FDI, GFCF, OPEN on Vietnamese Economic Growth

2021 ◽  
Vol 12 (3) ◽  
pp. 1-13
Author(s):  
Toan Duc Le ◽  
Phu Huu Nguyen ◽  
Yen Thi Phi Ho ◽  
Thuyen Ngoc Nguyen
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
World Bank ◽  
Direct Investment ◽  
Trade Openness ◽  
Capital Formation ◽  
Fixed Capital ◽  
Annual Data ◽  
Fixed Capital Formation ◽  
Short Run

The aim of study is to research the influences of Foreign Direct Investment (FDI), Gross Fixed Capital Formation (GFCF), Trade Openness of the Economy (OPEN) on Vietnam economic growth. This study uses the annual data for the period 1986 to 2019, obtained from World Bank and Vietnam General Statistics Office. The study shows that FDI, GFCF and OPEN together influence to Vietnam economic growth in the period 1986 – 2019 at significant level of 5%; in which the FDI and GFCF determinants have influenced greatly. In the short–run, the results indicate that there are bidirectional causality relationships running between FDI and GDP, OPEN and GDP, OPEN and GFCF, and there are undirectional causality relationships running from GDP to GFCF, from GFCF to FDI, from FDI to OPEN. The study’s results confirm that FDI as more reliable and less violate source of capital and can extend the Vietnam economic growth. According to the study’s results, the authors suggest some recommendations to increase the Vietnam economic growth.

scholarly journals PENGARUH REMITANSI TERHADAP PERTUMBUHAN EKONOMI LIMA NEGARA BERKEMBANG DI ASEAN (2005-2016)

2021 ◽  
Vol 24 (1) ◽  
pp. 21-27
Author(s):  
Christopher Reynaldo Romlin
Keyword(s):  
Economic Growth ◽  
Population Growth ◽  
Control Variable ◽  
Household Consumption ◽  
Capital Formation ◽  
The Philippines ◽  
Fixed Capital ◽  
Negative Effects ◽  
Positive Effects ◽  
Fixed Capital Formation

This study aims to identify the effect of remittances on economic growth. The objects used in this study are five ASEAN countries, namely Indonesia, Cambodia, the Philippines, Vietnam, and Thailand, for the period 2005 to 2016. There are other variables, namely gross fixed capital formation, household consumption expenditure, trade, and population growth which are used as control variable in this model. This study uses a quantitative approach and panel data methods. As a result, there are significant and negative effects on remittances: significant and positive effects on gross fixed capital formation, significant and positive effects on household consumption expenditures, significant and positive effects on trade, and significant and negative effects on population growth on economic growth in five countries. ASEAN.

scholarly journals Relationship between Trade Openness, Financial Development and Economic Growth of Nepal: Evidence from a Developing Country

2020 ◽  
Vol 2 (2) ◽  
pp. 206-224
Author(s):  
Shreezal G.C.
Keyword(s):  
Economic Growth ◽  
Human Capital ◽  
Developing Country ◽  
Financial Development ◽  
Capital Formation ◽  
Fixed Capital ◽  
Technological Factors ◽  
Long Run ◽  
Fixed Capital Formation ◽  
The Impact

Background: Capital investment, financial and technological developments are essential drivers for the economic growth of developing countries like Nepal. These factors, directly and indirectly, contribute to the growth of the country. Technological factors such as FDI and trade allow technology and knowledge transfers to Nepal along with foreign investments, goods and services. The financial sector encourages investors by providing loans that further generates investment in the country. Similarly, the development of human capital further increases labor productivity. Nepal, being a developing country, lacks advanced infrastructure and technology, that are vital for pushing the economic growth in the country. Objective: This paper examined the effect of capital, labor, foreign direct investment, financial development and trade on the economic growth of Nepal using the endogenous growth model. Methods: The study employedthe ARDLboundstesting approach to test the long-run relationships introducing an error correction model to estimate both short and long-term relationships among the variables.The TY non-granger causality test was used to ensure robustness and check the direction of causality. Results: The results showed that gross fixed capital formation, population and financial development were significant and inducedpositive economic growth in the long run at a 1% level of significance whereas, the impact of FDI on economic growth was negative and significant at 1%. Conclusions: The study concludes that an increase in gross fixed capital formation, population and broad money supply positively impacts the economic growth of Nepal. However, technological factors such as FDI and trade do not adequately explain the economic growth due to low FDI inflows, political instability, poor infrastructure and import dependency. Implications: The study emphasized domestic investment and financial development of the country as they were found to be highly significant in the long run. Also, the human capital of the country should be developed by providing education and training as the population was found to be highly significant. The study also indicated that Nepal should push export as its share in the trade is very less. Moreover, policies such as legal reforms, incentives to foreign investors and infrastructural development to attract FDIs in Nepal should be formulated.

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