scholarly journals The impact of efficiency on the economic growth of emerging economies: The case of Colombia

2018 ◽  
Vol 36 (85) ◽  
pp. 86-100
Author(s):  
Víctor Giménez ◽  
Diego Prior ◽  
Emili Tortosa Ausina
Keyword(s):  
Economic Growth ◽  
Emerging Economies ◽  
The Impact

Financial development, human capital and its impact on economic growth of emerging countries

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Aaqib Sarwar ◽  
Muhammad Asif Khan ◽  
Zahid Sarwar ◽  
Wajid Khan
Keyword(s):  
Economic Growth ◽  
Human Capital ◽  
Financial Development ◽  
Emerging Economies ◽  
Generalized Method Of Moments ◽  
Emerging Countries ◽  
Data Set ◽  
Content Type ◽  
The World ◽  
The Impact

Purpose This paper aims to investigate the critical aspect of financial development, human capital and their interactive term on economic growth from the perspective of emerging economies. Design/methodology/approach Data set ranged from 2002 to 2017 of 83 emerging countries used in this research and collected from world development indicators of the World Bank. The two-step system generalized method of moments is used to conduct this research within the endogenous growth model while controlling time and country-specific effects. Findings The findings of the study indicate that financial development has a positive and significant effect on economic growth. In emerging countries, human capital also has a positive impact on economic growth. Financial development and human capital interactively affect economic growth for emerging economies positively and significantly. Research limitations/implications The data set is limited to 83 emerging countries of the world. The time period for the study is 2002 to 2017. Originality/value This research contributes to the existing literature on human capital, financial development and economic growth. Limited research has been conducted on the impact of financial development and human capital on economic growth.

On the linkage between stock market development and economic growth in emerging market economies

2015 ◽  
Vol 14 (4) ◽  
pp. 363-381 ◽  
Author(s):  
Pramod Kumar Naik ◽  
Puja Padhi
Keyword(s):  
Economic Growth ◽  
Stock Market ◽  
Emerging Economies ◽  
Emerging Market ◽  
Market Development ◽  
Data Series ◽  
Annual Data ◽  
Content Type ◽  
Stock Market Development ◽  
The Impact

Purpose – The purpose of this study is to empirically examine the impact of stock market development on the economic growth for a panel of 27 emerging economies using annual data over the period from 1995 to 2012. Design/methodology/approach – A second-generation panel unit root test developed by Pesaran (2007) has been used to test the stationary properties of the data series. To achieve the study objectives and to mitigate the endogeneity problem that exists in the given model, the authors use a dynamic panel “system GMM” estimator. The authors also use a heterogeneous panel causality test proposed by Dumitrescu and Hurlin (2012) to examine the direction of causality among the variables. Findings – The empirical findings indicate that stock market development significantly contributes to economic growth. Further, a unidirectional causality running from stock market development to economic growth has been found. This finding is consistent with the supply-leading hypothesis. Besides stock market development, it is also evident that macroeconomic variables, such as investment ratio, trade openness and exchange rates, have significant impact on economic growth. Research limitations/implications – The findings suggest that a well-functioning stock market, a more globalized economy and increasing aggregate investment can potentially foster the economic growth in those emerging economies. Originality/value – Unlike other studies, this study constructs three alternate composite indices along with the individual indicators of stock market development and applies robust panel econometric techniques to establish more reliable results.

scholarly journals Innovation as a Determinant of Growth in Outperforming Emerging Markets: An Analysis of South Korea

2021 ◽  
Vol 13 (18) ◽  
pp. 10241
Author(s):  
Tina Maria Hintringer ◽  
Vito Bobek ◽  
Franko Milost ◽  
Tatjana Horvat
Keyword(s):  
Economic Growth ◽  
South Korea ◽  
Emerging Economies ◽  
Common Ground ◽  
Knowledge Flows ◽  
Least Squares Regression ◽  
Significant Relationships ◽  
The Common ◽  
The Impact

Emerging economies and their speed of growth, competitiveness, and resilience are of great interest globally due to the high potential investors see in them. Innovation is one of the factors recognized to be the common ground of significantly outperforming economies. Therefore, identifying innovation benchmarks and how they impact economic success is relevant for a more straightforward evaluation of innovation in a country. This research focuses on the quantitative parts of innovation. Firstly, governmental interference, knowledge flows and networks, cultural and societal preconditions, and openness towards change are identified as notably relevant innovation enhancing factors in South Korea through case study analyses. Then, an analysis of the impact of quantitative innovation factors on the GDP in South Korea is conducted. The impact of quantifiable innovation factors, identified through literature review, on the GDP as the benchmark for economic growth is tested from 1995 until 2018 through a linear, multiple least squares regression to identify significant relationships between the chosen variables. Two out of five selected quantitative innovation factors have a statistically significant impact on the economic growth in the used model. The number of researchers per million people and the patent grants of residents is identified to be impactful innovation benchmarks.

The Impact of Urbanization Induced Foreign Direct Investment in Emerging India

2018 ◽  
pp. 309-326
Author(s):  
Sharmiladevi J. C.
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Regression Analysis ◽  
Multiple Regression Analysis ◽  
Emerging Economies ◽  
Direct Investment ◽  
Economic Activities ◽  
Impact Of Urbanization ◽  
The Impact ◽  
Insight Into

Globalization accompanied with internationalization enhanced urbanization across the globe. Cities and towns became the central point for economic activities, most of them fueled by the inward flow of Foreign Direct Investment (FDI) especially in the emerging economies. Globalization initiated urbanization in most of the emerging economies. As an outcome of globalization directly and with urbanization indirectly it resulted in the growth of inward foreign direct investment across the globe. This chapter makes an attempt to identify the influence of urbanization upon inward FDI and economic growth for emerging India. To study this phenomenon, data for a period of twenty years were taken from 1990- 2010. Multiple regression analysis was used. Results of the study are significant and indicate that, urbanization is playing an important role in enhancing the inflow of FDI into India in the study period. 66.9% of the changes in the dependent variable that is inward FDI is explained jointly by urbanization and economic growth, which shows that cities and towns are becoming an integral part in receiving FDI. This chapter also add some insight into the changing consumption and lifestyles of urbanites effected due to FDI.

scholarly journals Exchange rate misalignment and economic growth: evidence from nonlinear panel cointegration and granger causality tests

2017 ◽  
Vol 22 (2) ◽  
Author(s):  
Christian K. Tipoy ◽  
Marthinus C. Breitenbach ◽  
Mulatu F. Zerihun
Keyword(s):  
Economic Growth ◽  
Exchange Rate ◽  
Granger Causality ◽  
Emerging Economies ◽  
Growth Strategy ◽  
Policy Implications ◽  
Smooth Transition ◽  
Short Run ◽  
Exchange Rate Misalignment ◽  
The Impact

Abstract We analyse the impact of exchange rate misalignment on economic growth for a sample of emerging economies from 1970 to 2014 using a panel smooth transition regression vector error correction model. Besides, we provide a granger causality test conducted in a non-linear framework. We find that a rise in misalignment increases significantly the output in the short-run when currencies are close to equilibrium. When they are highly misaligned, the impact on growth is reduced. However, no significant impact of output on misalignment was found in the short-run. We provide evidence that misalignment granger causes the output at any given level of misalignment both in the short and long-run. Weaker granger causality was found between output and misalignment. This raises some important policy implications. Although emerging economies can use undervaluation as a growth strategy, the benefits are smaller when currencies are highly undervalued. There is, therefore, an incentive to keep exchange rates closer to their equilibrium.

scholarly journals Sustainable Development Goals and Economic Growth in Emerging Economies: A Study of Sustainability through International Investments

2021 ◽  
Vol 15 (5) ◽  
pp. 41-58
Author(s):  
Nisha Goel ◽  
Gurinder Singh ◽  
Hima Bindu Kota ◽  
Monir Mir ◽  
Ciorstan Smark
Keyword(s):  
Economic Growth ◽  
Sustainable Development ◽  
Emerging Economies ◽  
Sustainable Development Goals ◽  
Decent Work ◽  
International Investments ◽  
Emerging Nations ◽  
Development Goals ◽  
The Impact ◽  
Made In

Decent work and economic growth are one of the crucial segments of Sustainable development goals, for which an attempt is made in the context of emerging nations to achieve economic growth through International support of investments. This study investigates the impact of international investments, i.e. FDI & FII on the growth of its economy. FDI & FII are attracted with the resources possessed by the country, which allows them on the conditions that they will generate employment and bring technological innovations with them. This paper attempts to study those impacts and measure the growth of the economy, resulting thereby.

scholarly journals The Finance-Growth Nexus: Evidence from Emerging Markets

2015 ◽  
Vol 7 (6(J)) ◽  
pp. 13-23
Author(s):  
Ashenafi Beyene Fanta
Keyword(s):  
Economic Growth ◽  
Emerging Economies ◽  
Banking Sector ◽  
Generalized Method Of Moments ◽  
Banking Crisis ◽  
Bond Markets ◽  
Development Indicators ◽  
Omitted Variable Bias ◽  
Variable Bias ◽  
The Impact

The finance growth literature ignores the role of bond markets in financing private investments. Moreover, the impact of bank crisis on the finance growth link has been largely overlooked. This paper aims at casting light at the finance growth link in emerging economies by accounting for bond markets and controlling for banking sector crises. Data on economic growth and financial development indicators for 15 emerging economies (drawn from Africa, Asia, Latin America, and Europe) were analysed using a system generalized-method-of-moments (GMM) technique. It is observed that while banking sector development is related to economic growth (albeit negatively), no statistically significant relation is observed between stock markets and or bonds markets and economic growth. Moreover, a banking crisis is found to affect the finance growth link in such a manner that the link weakens when a banking crisis is introduced to the model. Our results are robust to omitted variable bias, simultaneity problem, heteroscedasticity and autocorrelation.

Capital sudden stop, savings rate difference and economic growth: evidence based on 49 emerging economies

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Yu Ma ◽  
Jun Shi ◽  
Qiang Ji
Keyword(s):  
Economic Growth ◽  
Emerging Economies ◽  
Estimation Method ◽  
Economic Effects ◽  
Sudden Stops ◽  
Dynamic Panel ◽  
Content Type ◽  
Savings Rate ◽  
Different Types ◽  
The Impact

PurposeThis paper empirically tests the impact of capital sudden stops on the economic growth using quarterly data from 49 emerging economies.Design/methodology/approachThis paper applies the GMM dynamic panel estimation method.FindingsThe results show that capital sudden stops can significantly inhibit the economic growth of emerging economies. It was also found that the inhibiting effect on low-savings-rate economies is greater, but less on high-savings-rate economies. In addition, this paper examined the impact of different types of capital sudden stops on economic growth in emerging economies. The results reveal that the impact of sudden stops of direct investment is not significant.Originality/valueLittle existing research considers the impact of capital sudden stops through the perspective of savings rate differences. Based on our research using the GMM model, we argue that capital sudden stops will lead to a decline in investment kinetic energy in emerging economies, and therefore, a decline in economic growth. There are also few studies on the economic effects of capital sudden stops. And the time series model is generally used in a single economy. This paper, however, uses the data from 49 emerging economies and takes the panel approach to more comprehensively study the capital sudden stops of emerging economies.

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