scholarly journals The Dynamic Effects of Innovation, FDI, & Trade Liberalization on Services Sector: An Evidence from Developed and Developing Economies

2020 ◽  
Vol 8 (2) ◽  
pp. 116-132
Author(s):  
Muhammad Chishti ◽  
◽  
Farrukh Mehmood ◽  
Keyword(s):  
Trade Liberalization ◽  
Developing Economies ◽  
Trade Openness ◽  
Dynamic Panel Data ◽  
Dynamic Effects ◽  
Services Sector ◽  
Panel Data Estimation ◽  
Productivity Differential ◽  
Data Estimation

The current study is a bid to explore the dynamic effects of Innovation, FDI, and trade openness on services sector in selected developed and developing economies for the period of 1992 to 2016. For computing the empirical findings, this study deploys the static as we all dynamic panel data estimation approaches. The results reveal the significant role of GDP per capita and FDI in the growth of services sector. However, the services sector incurs the detrimental repercussions on the account of trade liberalization. These findings also demonstrate that, in both samples of economies, the services sector does not respond to the productivity differential. Furthermore, innovation exhibits a significant association with the growth of services sector in the case of developing economies.

scholarly journals The Determinants of Services Sector Growth: A Comparative Analysis of Selected Developed and Developing Economies

2018 ◽  
Vol 57 (1) ◽  
pp. 27-44
Author(s):  
Muhammad Salam ◽  
Javed Iqbal ◽  
Anwar Hussain ◽  
Hamid Iqbal
Keyword(s):  
Panel Data ◽  
Developing Economies ◽  
Panel Data Analysis ◽  
Trade Openness ◽  
Dynamic Panel Data ◽  
Services Sector ◽  
Panel Data Estimation ◽  
The Common ◽  
Data Estimation ◽  
Dynamic Panel Data Estimation

This study empirically examines the possible factors that determine the services sector growth, both in selected developed and developing economies. For estimation purpose, the study employs the static as well as the dynamic panel data estimation technique with panel data over the period 1990-2014. The results suggest that GDP per capita, FDI net inflow, trade openness and innovations are the common factors that significantly affect the services sector growth both in developed and in developing economies. However, the productivity gap is the only factor that does not have any significant impact on services sector growth, both in developed and developing economies, which indicates that the Baumol's cost disease has been cured. Keywords: Services Sector Growth, Panel Data Analysis, Innovations

BEYOND CONVENTIONAL TRADE: TRADE OPENNESS IMPLICATIONS OF TRADE IN VALUE ADDED

2020 ◽  
pp. 1-23
Author(s):  
HALIT YANIKKAYA ◽  
ABDULLAH ALTUN
Keyword(s):  
Negative Impact ◽  
Trade Openness ◽  
Value Added ◽  
Dynamic Panel Data ◽  
Growth Effect ◽  
Panel Data Estimation ◽  
Export Shares ◽  
Value Added Measures ◽  
Data Estimation ◽  
Trade In Value Added

This study compares the impacts of gross trade openness measures with trade openness in value-added measures on economic growth for the years 1995–2014 by employing a dynamic panel data estimation. Our findings suggest that although gross trade shares promote growth, using value-added trade shares magnifies this positive effect. Compared with gross terms, estimates also imply that while exports in value-added terms have much larger growth effect, imports in value-added terms have no significant impact. We then evaluate the impacts of tariffs on growth in terms of gross trade and trade in value added separately. Although our results imply the negative growth effects of gross import tariffs, this negative impact disappears for tariffs in value-added terms. These results reaffirm that trade protectionism has potential to lower global growth through reducing exports because it is clear that export shares regardless of their measurements and disaggregation levels promote growth. Our results indicate that countries should support not only exports of final products but also exports of intermediates. However, given the necessity of imports for exports, our results do not lend any evidence to discourage overall imports.

scholarly journals Economic growth and methane emission: testing the EKC hypothesis in ASEAN economies

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Rana Muhammad Adeel-Farooq ◽  
Jimoh Olajide Raji ◽  
Bosede Ngozi Adeleye
Keyword(s):  
Economic Growth ◽  
Dynamic Panel Data ◽  
Kuznets Curve ◽  
Ekc Hypothesis ◽  
Content Type ◽  
Panel Data Estimation ◽  
Emission Testing ◽  
Asean Countries ◽  
Data Estimation

PurposeThe purpose of this study is to analyze the Environmental Kuznets Curve (EKC) hypothesis within the methane (CH4) emission–economic growth nexus among the six Association of Southeast Asian Nations (ASEAN) countries from 1985 to 2012.Design/methodology/approachThe study employs dynamic panel data estimation approaches such as mean group (MG) and pooled MG (PMG) techniques.FindingsThe findings reveal that the EKC hypothesis for the CH4 emission in these economies proves to be valid. In other words, economic growth causes CH4 emissions to decrease. Nevertheless, energy consumption is deteriorating the environment by enhancing CH4 emissions in these countries.Originality/valueThe ASEAN region has experienced substantial economic growth over the previous few decades. Nevertheless, pollution has also increased manifolds in this region. Methane is a more potent greenhouse gas (GHG) as compared to carbon dioxide (CO2) and a major source of socio-economic issues in the ASEAN region. This study is the first in the existing literature on the EKC hypothesis examining the role of economic growth on CH4 emissions in the selected ASEAN countries. The outcomes of this study could be really beneficial for the policymakers in this region regarding sustainability and economic development.

scholarly journals Exchange Rate Volatility and Domestic Consumption: A Comparative Study of Developed, Developing and Emerging Economies

2019 ◽  
Vol 9 (3) ◽  
pp. 164
Author(s):  
Muhammad Zubair Chishti ◽  
Hafiz Syed Muhammad Azeem ◽  
Farrukh Mahmood ◽  
Adeel Ahmed Sheikh
Keyword(s):  
Exchange Rate ◽  
Panel Data ◽  
Developing Economies ◽  
Exchange Rate Volatility ◽  
Domestic Consumption ◽  
Aggregate Consumption ◽  
Developed Economies ◽  
Panel Data Estimation ◽  
The Exchange Rate ◽  
Data Estimation

The current study endeavors to explore the effects of oscillations in the exchange rate on the household aggregate consumption of developed, emerging, and developing economies, employing the panel data from 1995 to 2017. To select an appropriate panel data estimation technique, we apply Brush-Pagan & Hausman Tests for each set of chosen economies. Further, our study deduces that, in the case of developed economies, the oscillations in the exchange rate, significantly, affect the domestic consumption, supporting Alexander’s (1952) conjecture. However, in the case of emerging and developing economies, aggregate consumption does not respond to the exchange rate volatility.

scholarly journals An Examination of Drivers of Financial development: Evidence in West African Countries.

2018 ◽  
Vol 6 (1) ◽  
pp. 132-143
Author(s):  
Adewosi, O. Adegoke ◽  
Manu Donga ◽  
Adamu Idi ◽  
Buba Abdullahi
Keyword(s):  
Financial Development ◽  
Developing Economies ◽  
Negative Impact ◽  
Trade Openness ◽  
Government Expenditure ◽  
Political Stability ◽  
Vital Role ◽  
West African ◽  
African Countries ◽  
Panel Data Estimation

Financial development has been considered to play a vital role in promoting rapid growth and development of the developing economies. This paper examined the drivers of financial development in West African Countries. Benin Republic, Burkina Faso, Cape Verde, Ivory Coast, Gambia, Ghana, Guinea, Guinea Bissau, Liberia, Mali, Mauritania, Niger, Nigeria, Senegal, Sierra Leone and Togo over the period of 2000 to 2015, with the proper utilization of panel data estimation technique on the annual country data obtained from World Development Indicators (WDI) 2016 and Worldwide Governance Indicators (WGI) 2016. The results reveals that some important variables such as coefficient of rule of law, political stability, foreign direct investment, government expenditure, inflation and savings positively determined financial development. While, credit to private sector, GDP, interest rate, trade openness, and capital formation were found to negative impact on financial development. The study then recommends amongst others formulation and implementation of fiscal and monetary policies that foster financial development.

scholarly journals Trade, Environment, Human Capital and Services Sector in Developing Countries: A Panel Data Analysis

2021 ◽  
Vol 7 (3) ◽  
Author(s):  
Ismat Nasim ◽  
Imran Sharif Chaudhry ◽  
Fatima Farooq ◽  
Furrukh Bashir
Keyword(s):  
Carbon Dioxide ◽  
Developing Countries ◽  
Human Capital ◽  
Panel Data ◽  
Trade Liberalization ◽  
Unit Root ◽  
Trade Openness ◽  
Carbon Dioxide Emission ◽  
Value Addition ◽  
Services Sector

This study aims to examine the influence of Trade Liberalization, Environmental Quality (CO2 Emission) on Services Sector Growth in some selected developing. The estimation of the study considers panel data unit root and panel data ARDL approach. The environmental quality is represented by Carbon Dioxide Emission and trade liberalization is by trade openness. The results of Panel Unit Root test summarize that Panel ARDL is the most appropriate method of estimation for having Panel Coefficient values due to mixed order of integration for developing countries. The empirical findings of model, in Developing Countries, Labor Force, Capital Stock, Trade Openness, Money Supply, Government Expenditure and Human Capital exert upward pressure on Services Value Addition while Carbon Dioxide Emission and Price Level is putting download pressure on Services Value Addition.

scholarly journals Foreign Aid, Domestic Savings and Economic Growth in Selected MENA Countries

2016 ◽  
Vol 6 (1) ◽  
pp. 352 ◽  
Author(s):  
Mahmoud Mohammed Sabra ◽  
AbdelHakeem Eltalla
Keyword(s):  
Economic Growth ◽  
Foreign Aid ◽  
System Analysis ◽  
Negative Impact ◽  
Trade Openness ◽  
Negative Relationship ◽  
Dynamic Panel Data ◽  
Mena Countries ◽  
Domestic Savings

<p class="ber"><span lang="EN-GB">Foreign aid can have either a positive or a negative impact on economic growth. The role of foreign aid in supporting growth by completing domestic savings has been a subject of substantial argument. In this study, we explore the role of foreign aid, trade openness, investment, domestic savings and economic growth in eight MENA countries (Morocco, Algeria, Egypt, Palestine, Syria, Jordan, Lebanon and Tunisia) for the period from 1977 to 2013. The estimation has been done using simultaneous equation model and dynamic panel data system analysis. A negative relationship is found between economic growth and foreign aid. The negative impact of foreign aid on economic growth could be due to presence of Dutch disease and bad policy environment. In addition, foreign aid seems to crowd out domestic savings rather than complementing it. The effects of trade openness and domestic investment on economic growth are significantly positive.</span></p>

An Empirical Analysis of Differences in GDP per Capita and the Role of Human Capital

2010 ◽  
Vol 24 (2) ◽  
pp. 101-107
Author(s):  
George Sfakianakis ◽  
Anastasios I. Magoutas ◽  
Demosthenes Georgopoulos
Keyword(s):  
Capital Accumulation ◽  
Physical Capital ◽  
The Public ◽  
Panel Data Estimation ◽  
Production Function Approach ◽  
Panel Data Estimation Techniques ◽  
Specific Factors ◽  
Per Capita ◽  
Data Estimation

Using a generalized production function approach and insights from empirical research on the determinants of growth, this paper assesses the relative importance of specific factors in explaining differences in the levels of per capita GDP. Emphasis is placed on education, physical capital accumulation, the share of the public sector in economic activity and the outward orientation of economies. Education, among other things, is connected with the ability of countries to take advantage of technology transfer channels. Panel data estimation techniques are used to obtain empirical results for the EU-15 countries, and economic policy recommendations are evaluated accordingly.

scholarly journals The Role of Institutional Quality on Participation in Global Value Chains

2020 ◽  
Author(s):  
Javier Barbero ◽  
Ernesto Rodríguez-Crespo
Keyword(s):  
Panel Data ◽  
Rule Of Law ◽  
Institutional Quality ◽  
Positive Association ◽  
Political Stability ◽  
Global Value Chains ◽  
Value Chains ◽  
Panel Data Estimation ◽  
Data Estimation

We explore the effect of institutional quality on participation in global value chains (GVCs) by distinguishing between backward and forward participation. Using a sample of 63 OECD and non-OECD countries during the period 2005–2015, the results obtained from a panel data estimation are twofold. First, we obtain a positive association between institutional quality and participation in GVCs, with slightly greater effects for backward than for forward participation. Second, we find that results are sensitive to the dimension of the institutions considered, with Voice and Accountability being associated with more backward participation, and Rule of Law and Political Stability with more forward participation

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