scholarly journals INNOVATION CAPACITY, BUSINESS SOPHISTICATION AND MACROECONOMIC STABILITY: EMPIRICAL EVIDENCE FROM OECD COUNTRIES

2019 ◽  
Vol 20 (2) ◽  
pp. 351-367 ◽  
Author(s):  
Dervis Kirikkaleli ◽  
Alper Ozun
Keyword(s):  
Time Series ◽  
Oecd Countries ◽  
Least Square ◽  
Ordinary Least Square ◽  
Long Run ◽  
Causality Tests ◽  
Innovation Capacity ◽  
Single Dataset ◽  
The Relationship ◽  
Macroeconomic Stability

The main aim of this study is to explore the linkages between innovation capacity, business sophistication, and macroeconomic stability within OECD countries. In order to obtain information regarding the relationship between time series variables, the Pedroni cointegration, Kao cointegration, fully modified ordinary least square, dynamic ordinary least square, Granger causality, and Dumitrescu Hurlin causality tests are employed. The empirical results reveal that improvement in business sophistication triggers innovation capacity and support macroeconomic stability. Innovation capacity would also need to be expanded in the long-run, which positively leads to advanced business sophistication that has a cyclical effect. If policymakers intend to accelerate business sophistication, then their attention should be directed towards maximizing the economic indicators in the long-run. To the best of our knowledge, the linkage between innovation capacity, business sophistication and macroeconomic stability in OECD countries has not been comprehensively explored through the use of a single dataset. Thus, the findings of this study could lead to a new debate regarding the concept.

scholarly journals An analysis of the relationship of inflation and unemployment to the gross domestic product (gdp) in zimbabwe

2014 ◽  
Vol 1 (3) ◽  
pp. 156-162
Author(s):  
Tendai Makoni
Keyword(s):  
Time Series ◽  
Gross Domestic Product ◽  
Cointegration Test ◽  
Domestic Product ◽  
Long Run ◽  
Causality Tests ◽  
Granger Causality Tests ◽  
Relationship Of ◽  
The Relationship ◽  
Yearly Data

The time series yearly data for Gross Domestic Product (GDP), inflation and unemployment from 1980 to 2012 was used in the study. First difference of the logged data became stationary as suggested by the time series plots. Johansen Maximum Likelihood Cointegration test indicated a long-run relationship among the variables. Granger Causality tests suggested unidirectional causality between inflation and GDP, implying that GDP is Granger caused by inflation in Zimbabwe. Another unidirectional causality was noted between unemployment and inflation. The causality between unemployment and inflation imply that unemployment do affect GDP indirectly since unemployment influences inflation which in turn positively affect GDP.

scholarly journals Causal Nexus between Government Debt, Exports and Economic Growth for Three Eurozone Countries: A Panel Data Analysis

2016 ◽  
Vol 3 (1) ◽  
pp. 47
Author(s):  
Nikolaos Dritsakis ◽  
Pavlos Stamatiou
Keyword(s):  
Economic Growth ◽  
Panel Data ◽  
Government Debt ◽  
The United States ◽  
Mortgage Market ◽  
Least Square ◽  
Policy Implications ◽  
Ordinary Least Square ◽  
Long Run ◽  
The Relationship

<em>The relationship between government debt, exports and economic growth has been the focus of a considerable number of academic studies in recent years. The economic crisis, which started in the United States mortgage market, quickly went global when mortgage-backed securities traded by financial institutions. Europe’s response was immediate regarding the measures to tackle the crisis. The establishment of common strategies was the long term goal of the European Union (EU). This paper examines the relationship between government debt, exports and economic growth in the EU countries with the highest level of government debt, using panel data over the period 1990-2014. The Fully Modified Ordinary Least Square (FMOLS) and Dynamic Ordinary Least Square (DOLS) methods are used to estimate the long run relationship between the variables. In addition, the Vector Error Correction Model (VECM) is used in order to investigate the causal relationship between the examined variables. The empirical results of the study revealed that there are both short and long run relationships. Findings suggest that that there is a unidirectional causality running from exports to economic growth as well as from exports and economic growth to government debt. The results provide evidence to support the export led-growth hypothesis. Exports are an important factor for economic development. Moreover, the results reveal that government debt is affected by exports both directly and indirectly through economic growth. Policy implications are then explored in the conclusions.</em>

Democracy and international financial integration in Pakistan

2017 ◽  
Vol 10 (1) ◽  
pp. 16-31 ◽  
Author(s):  
Syed Tehseen Jawaid ◽  
Shujaat Abbas ◽  
Shaikh Muhammad Saleem
Keyword(s):  
Financial Integration ◽  
Component Analysis ◽  
Least Square ◽  
Series Data ◽  
Content Type ◽  
Ordinary Least Square ◽  
Long Run ◽  
International Financial Integration ◽  
The Impact ◽  
The Relationship

Purpose The purpose of the study is to investigate the relationship between international financial integration (IFI) index and democracy (DEM) in Pakistan by using long-time series data from 1975 to 2013. Design/methodology/approach The IFI index is constructed by principal component analysis. IFI consists of foreign direct investment (FDI), remittances (REM) and external debt (ED), whereas the Polity IV index is used for DEM. Johansen and the autoregressive distributed lag method for cointegration methods are used to find a long run relationship. Dynamic ordinary least square (DOLS), fully modified ordinary least square (FMOLS) and canonical regression (CR) have been used to find the nature of the relationship. Rolling window analysis has been done to find the year wise coefficients. Findings DOLS, FMOLS, canonical regression CR and cointegration results suggest a significant negative long-run relationship between IFI and DEM in Pakistan. Rolling windows analysis highlights that DEM has improved IFI in Pakistan from 2008 to 2013. Originality/value This study constructs an index for financial integration using principle component analysis on capital inflows, i.e. FDI, REM, ED, to explore the impact of DEM on IFI in Pakistan from 1975 to 2013. This study investigates for the first time ever the relationship between IFI index and DEM in Pakistan.

scholarly journals A Way towards Economic Growth in Pakistan: Role of Worker’s Remittances Revisited

2017 ◽  
Vol 5 (1) ◽  
pp. 1-14
Author(s):  
Hina Ali ◽  
Saba Tahir
Keyword(s):  
Economic Growth ◽  
Time Series ◽  
Economic Development ◽  
World Bank ◽  
Direct Investment ◽  
Least Square ◽  
Gdp Growth ◽  
Ordinary Least Square ◽  
The Relationship

This research is directed to study the role of remittances in the economic growth of Pakistan. In Pakistan workers, remittances are considered a second-largest source of finance after FDI. In this study, the relationship between worker's remittances and economic development in Pakistan is estimated by using the Ordinary Least Square (OLS) technique. Data is taken in time series for the period of 37 years from 1976 to 2013 from World Bank, economic surveys, and Stat bank of Pakistan. This research showed that worker’s remittances are positive as well as significant with GDP growth and also playing a dynamic part in the economy of Pakistan. Savings (SAV) and Foreign direct investment (FDI) have positive and significant impacts on economic development. Therefore, the study recommends that there should be a proper setup that will help to attract more workers remittances into the economy. There is a need for such an official financial sector that inspires recipients to invest their savings into a productive sector that would result in economic growth.

scholarly journals MACROECONOMIC STABILITY AND TRANSPORT COMPANIES’ SUSTAINABLE DEVELOPMENT IN THE EASTERN EUROPEAN UNION

2021 ◽  
Vol 0 (0) ◽  
pp. 1-14
Author(s):  
Michał Comporek ◽  
Magdalena Kowalska ◽  
Anna Misztal
Keyword(s):  
Sustainable Development ◽  
Least Square Method ◽  
Least Square ◽  
Eastern European ◽  
Economic Policies ◽  
Ordinary Least Square ◽  
Pearson's R ◽  
The Relationship ◽  
Pearson’S R ◽  
Macroeconomic Stability

The paper’s primary aim is to evaluate the influence of macroeconomic stability on transport companies’ sustainable development in the eastern EU from 2008 to 2019. The first part discusses the theoretical problems. The empirical part includes the methodology, results of the research and conclusions. To determine the relationship between variables, we use Pearson’s R and the Ordinary Least Square Method. The contribution to knowledge is using the pentagon of macroeconomic stability to evaluate macroeconomic stabilisation’s influence on transport companies’ sustainable development. The results indicate that macroeconomic stability is one of the essential determinants of the transport companies’ sustainable development. According to Pearson’s R, the highest level of dependence is in Slovenia (0.96), Bulgaria (0.9), and Slovenia (0.83). The lowest is in Latvia (0.69). The OLS regression results indicate that the highest significance is in Slovakia (α1 = 1.994), the lowest is in Lithuania (α1 = 0.691). The states’ economic policies should favour the freedom to conduct business, create appropriate legal regulations, and support ecological investments. It is necessary to act for a stable and fair tax system, ensure access to finance. The issue is contemporary and requires further analysis.

The Impact of Competitive Quasi-Market on Service Delivery in Benue State University, Makurdi Nigeria

GIS Business ◽  
2019 ◽  
Vol 14 (4) ◽  
pp. 85-98
Author(s):  
Idoko Peter
Keyword(s):  
Service Delivery ◽  
A Priori ◽  
Least Square ◽  
Secondary Source ◽  
State University ◽  
Ordinary Least Square ◽  
Negative Effect ◽  
The Impact ◽  
The Relationship

This research the impact of competitive quasi market on service delivery in Benue State University, Makurdi Nigeria. Both primary and secondary source of data and information were used for the study and questionnaire was used to extract information from the purposively selected respondents. The population for this study is one hundred and seventy three (173) administrative staff of Benue State University selected at random. The statistical tools employed was the classical ordinary least square (OLS) and the probability value of the estimates was used to tests hypotheses of the study. The result of the study indicates that a positive relationship exist between Competitive quasi marketing in Benue State University, Makurdi Nigeria (CQM) and Transparency in the service delivery (TRSP) and the relationship is statistically significant (p<0.05). Competitive quasi marketing (CQM) has a negative effect on Observe Competence in Benue State University, Makurdi Nigeria (OBCP) and the relationship is not statistically significant (p>0.05). Competitive quasi marketing (CQM) has a positive effect on Innovation in Benue State University, Makurdi Nigeria (INVO) and the relationship is statistically significant (p<0.05) and in line with a priori expectation. This means that a unit increases in Competitive quasi marketing (CQM) will result to a corresponding increase in innovation in Benue State University, Makurdi Nigeria (INVO) by a margin of 22.5%. It was concluded that government monopoly in the provision of certain types of services has greatly affected the quality of service experience in the institution. It was recommended among others that the stakeholders in the market has to be transparent so that the system will be productive to serve the society effectively

scholarly journals Does Foreign Direct Investment Influence Renewable Energy Consumption? Empirical Evidence from South Asian Countries

Energies ◽  
2021 ◽  
Vol 14 (12) ◽  
pp. 3470
Author(s):  
Xueqing Kang ◽  
Farman Ullah Khan ◽  
Raza Ullah ◽  
Muhammad Arif ◽  
Shams Ur Rehman ◽  
...  
Keyword(s):  
Foreign Direct Investment ◽  
Renewable Energy ◽  
Sri Lanka ◽  
South Asian ◽  
Environmental Sustainability ◽  
Direct Investment ◽  
Least Square ◽  
Asian Countries ◽  
Ordinary Least Square ◽  
The Relationship

In selected South Asian countries, the study intends to investigate the relationship between urban population (UP), carbon dioxide (CO2), trade openness (TO), gross domestic product (GDP), foreign direct investment (FDI), and renewable energy (RE). Fully modified ordinary least square (FMOLS) and dynamic ordinary least square (DOLS) models for estimation were used in the study, which covered yearly data from 1990 to 2019. We used Levin–Lin–Chu, Im–Pesaran–Shin, and Fisher PP tests for the stationarity of the variables. The outcomes of the panel cointegration approach looked at whether there was a long-run equilibrium nexus between selected variables in Pakistan, Bangladesh, India, and Sri Lanka. The FMOLS approach was also used to assess the relationship, and the results suggest that there is a significant and negative nexus between FDI and renewable energy in south Asian nations. The study’s findings reveal a strong and favorable relationship between GDP and renewable energy use. In South Asian nations (Sri Lanka, Pakistan, India, and Bangladesh), the FMOLS and DOLS findings are nearly identical, but the authors used the DOLS model for robustification. According to the findings, policymakers in South Asian economies (Sri Lanka, Pakistan, India, and Bangladesh) should view GDP and FDI as fundamental policy instruments for environmental sustainability. To reduce reliance on hazardous energy sources, the government should also reassure financial sectors to participate in renewable energy.

scholarly journals Banking Sector Development, Inflation and Economic Growth in Asian Countries: A Panel Causality and Co-Integration Approach

2018 ◽  
Vol 8 (4) ◽  
pp. 384
Author(s):  
Muhammad Imran Nazir ◽  
Rehana Tabassam ◽  
Ifran Khan ◽  
Muhammad Rizwan Nazir
Keyword(s):  
Economic Growth ◽  
Banking Sector ◽  
Vital Role ◽  
Least Square ◽  
Policy Implications ◽  
Asian Countries ◽  
Ordinary Least Square ◽  
Long Run ◽  
Banking Sector Development ◽  
Integration Test

This study investigates the causal relationship between banking sector development, inflation, and economic growth for six Asian countries (Bangladesh, China, India, Malaysia, Pakistan and Sri Lanka) over the period of 1970-2016. Using a Pedroni panel, Kao co-integration test, Panel Granger causality-based Error Correction Model, Dynamic ordinary least square (DOLS), and Fully modified ordinary least square (FMOLS), this study finds that the development of the banking sector generally has a positive relationship with economic growth in the long-run. This results show that in the long-run, monetary policy play a vital role in the economic growth. This study also confirmed the response causality between the indicators of banking sector development and economic growth. Based on the empirical findings, this research provides important policy implications to the banking sector and economic supervisory bodies in order to achieve the long run economic growth.

scholarly journals Impacto das exportações de alta tecnologia no crescimento econômico: evidências empíricas do Paquistão

2017 ◽  
Vol 8 (1) ◽  
pp. 91 ◽  
Author(s):  
Muhammad Usman
Keyword(s):  
Economic Growth ◽  
World Bank ◽  
Time Span ◽  
Least Square ◽  
High Tech ◽  
Ordinary Least Square ◽  
Robust Standard Error ◽  
Long Run ◽  
Data Source ◽  
The Impact

The goal of this study is to explore the impact of high tech exports on economic growth of Pakistan. To examine this relationship, data are collected from World Bank database, State Bank of Pakistan data source and Statistical Bureau of Pakistan. Time span of study is consisting of 20 years from 1995 to 2014. By using ordinary least square (OLS) with robust standard error, results confirm that there is a positive and statistically significant impact of high tech exports on economic growth. Although Pakistan is an agriculture country and its economic growth is largely depend upon farming, but for long run economic growth, Pakistan has to increase its high tech exports.

scholarly journals Does National Culture Have Any Impact on E-Government Usage?

2018 ◽  
Vol 9 (3) ◽  
pp. 29-45 ◽  
Author(s):  
Mohammad I. Merhi
Keyword(s):  
National Culture ◽  
World Bank ◽  
Cultural Dimensions ◽  
Least Square ◽  
Truncated Regression ◽  
Literacy Rate ◽  
Ordinary Least Square ◽  
Actual Usage ◽  
The Relationship ◽  
Socio Economic Factors

The motivation of this article was the lack of empirical evidence regarding the relationship between culture and actual usage of ICTs/e-government. By using Hofstede's cultural framework, this article explains the influence of national culture on e-government usage across countries controlled by socio-economic factors, specifically, GDP and literacy rate. Data was collected from reputable organizations such as World Bank databases and Hofstede's website. Ordinary least square and truncated regression are used to test the hypotheses presented in this article. Results indicate that nearly all Hofstede's cultural dimensions and e-government usage are significantly related. In particular, this article indicates that the usage of e-government is higher in nations that score low in power distance, uncertainty avoidance, individualism and masculinity.

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