Economic Growthin Research Articles

Foreign Direct Investment and Energy Demands: What Drives Economic Growth in Emerging Economies?

This study addresses two central questions: (a) Do inward foreign direct investment (FDI) spillovers drive economic growth in emerging economies? and (b) How do the interconnectedness of inward FDI and energy demands cause economic growthin emerging economies? For the analysis, the study uses data from the World Development Indicators and Penn World Table 10.0, covering the period between 1994 and 2019. The results show evidence of bi-directional causality between inward FDI spillover and economic growth, and the relationships are negative. These results indicate that FDI inflows are less critical in economic growth in emerging economies and vice versa. Furthermore, non-renewable energy positively causes both economic growth and FDI inflows, whereas renewable energy negatively causes economic growth. More so, our results reveal a presence of bi-directional causality between FDI inflows and renewable energy in emerging economies. Finally, as these empirical insights have profound implications for governments and policymakers in these economies, the article proposes policies targeting sustainable economic growth and diffusions of renewable energy technologies through inward FDI spillover. JEL Codes: 047, F35, P18, P52, C10

Does The Military Expenditure Hurt The Economic Growth? Evidence Derive From South Asian Countries

Research Aims: This study examines the impact of military spending onthe economic growth in South Asian countries.Design/methodology/approach: It uses the 134 unbalanced data points ofsix South Asian countries collected from the various reports of the WorldBank. Descriptive and exploratory research designs are used. It is basedon the positivist research philosophy. Some statistical and econometrictools like descriptive statistics, panel unit root test, Johnsen and Kaoresidual cointegration test, and panel ARDL model are used to explorethe impact of military expenditure, inflation rate, unemployment rate,and gross capital formation on the economic growth of South Asiancountries.Research Findings: Inflation has a positive effect on economic growth inthe long run but a negative impact in the short run. Military expenditurehas a positive effect in the long run but a negative impact on economicgrowth; the unemployment rate is negative, and gross capital formationpositively impacts economic growth in the long and short run in SouthAsian Countries. Military spending does not significantly affect economicprogress in the long run, but military expenditure hurts economic growthin the short run. One unit increase in military spending results from a0.633 percent decrease in the GDP growth of South Asian countries. Theyouth unemployment rate negatively impacts economic growth in theshort and long run. One unit increase in the unemployment rate resultsfrom 0.093 and 0.319 unit decrease in economic growth in the long andshort run, respectively. Likewise, one unit increase in capital formationand inflation rate results from 0.203 and 0.116 unit increase in GDPgrowth in the long run, respectively. The inflation rate negatively impactseconomic growth in the short run. One unit increase in inflation rateresults from 0.191 unit decrease in GDP growth in short-run. Prioritizestrategies that mitigate short-term negative impacts of inflation andmilitary expenditure while fostering long-term economic growth throughinvestment in capital formation and addressing youth unemployment inSouth Asian countries.Keywords: Inflation, unemployment, panel data, Keynesian stimulushypothesis, stagnation

Entrepreneurship Education in South Africa’s Higher Education Institutions:Iin Pursuit of Promoting Self-Reliance in Students

Purpose: Entrepreneurship Education (EE) has garnered increased attention in SouthAfrican higher education institutions due to its potential to foster self-reliance and jobcreation in a country grappling with high unemployment rates. This study examinesentrepreneurship education's role in promoting economic development and povertyalleviation in South Africa.Study design/methodology/approach: The study adopts a systematic reviewapproach to explore the effectiveness of entrepreneurship education in addressingunemployment, creating employment opportunities, and fostering economic growthin South Africa. The study seeks to identify key findings and insights regardingintegrating entrepreneurship education into teaching and learning practices in highereducation institutions by synthesising existing literature.Findings: The findings indicate that entrepreneurship education has the potential toaccelerate economic growth, reduce unemployment rates, and alleviate poverty trapsin South Africa. By equipping students with entrepreneurial skills and mindset,entrepreneurship education can empower individuals to establish and sustain smallbusinesses, thus contributing to economic development and poverty reduction.Originality/value: This study contributes to the existing literature by providinginsights into the role of entrepreneurship education in addressing socio-economicchallenges in South Africa. The findings underscore the importance of integratingentrepreneurship education into teaching and learning practices across all highereducation institutions to tackle unemployment and poverty in the country effectively.The study emphasises the need for concerted efforts from stakeholders in highereducation to prioritise entrepreneurship education to foster economic resilience andsocial upliftment in South Africa.

The Impact of Population Aging on Economic Growthin Asian Countries

The Impact of Population Aging on Economic Growthin Asian Countries

Nexus Between Debt Management Literacy and Digital Loan Repayment Performance Among Selected SMEs in Kenya

The global economy is heavily dependent on the success of Small and Medium Enterprises (SMEs) which create employment, poverty alleviation, and balanced developments which bring about economic growth in rural and urban setups. Loan defaults continue to be a major challenge that confronts financial institutions in developing countries and this impedes their potential role in sustainable development. The main aim of the study was to establish the nexus between debt management literacy and digital loan repayment performance among selected SMEs in Kenya. The study was informed by financial literacy theory and it employed an explanatory research design. The study targeted owners/managers of 620 registered SMEs within Nairobi County. Systematic and simple random sampling was used to select 243 SMEs to constitute the sample. The main research instruments that were used in this study were questionnaires. Descriptive and inferential statistics were used to analyze data. The findings revealed that debt management literacy positively and significantly influences digital loan repayment performance. It is therefore paramount that SMEs owners need to be at the forefront in ensuring that they are trained on debt management strategies. In that way, the SMEs will benefit from the skills and knowledge of managing finances efficiently and how to ensure loans are paid on time.

IMPACT OF EXPORT AND IMPORT ON ECONOMIC GROWTH IN INDIA

IMPACT OF EXPORT AND IMPORT ON ECONOMIC GROWTH IN INDIA

Trade liberalization, institutions, and economic growthin Malawi

The study provides an empirical assessment of how institutions and trade liberalization affect Malawi’s economicexpansion. It tackles the absence of empirical research into how institutions affect economic growth and howtrade liberalization policy affects institutions’ influence on growth (interaction effect). The study also seeks tofind out if economic growth, however, affects institutions as theories differ on causality. The study uses a timeseries analysis and autoregressive distribution lag (ARDL) technique to obtain short-run and long-run results. Thestudy was conducted from 1988, the official inception year of trade liberalization in Malawi, to 2014. The empiricalresults show that political and economic institutions, as well as trade liberalization, affect Malawi’s economicgrowth in both the short term and the long term. Trade liberalization and political institutions negatively affecteconomic growth in the short run and long run, whereas economic institutions positively affect economic growthin the short run and long run. The findings also show that when strong economic institutions rather than strongpolitical institutions are present, the effect of trade liberalization on economic development is more prominent(positive). Finally, the study also finds that it is institutions that affect economic growth in Malawi and not the otherway around.

Macroeconomic Determinants of Economic Growth in South Africa (1994-2016): Cointegration Approach

The key macroeconomic objectives being pursued by any developing country are low unemployment, low inflation, and sustainable growth. The main aim of this study was to analyze the effect of unemployment and inflation on economic growthin South Africa for the period of 1994 to 2018, using quarterly data. The results of the unit root test using the Augmented Dickey Fuller and Phillips Perron tests showed that all the variables have a unit root in levels and became stationary after first differencing. The Johansen co-integration test outcomesshowed that there is a long-run relationship among variables,and the Vector error correlation model confirmed that inflation and unemployment have a negative impact on economic growth. Furthermore, the results of the tests for White Heteroskedasticity, Jarque -Bera and Serial correlation LM reveal that there is no problem of Heteroskedasticity, data distribution or serial correlation respectively. The government should implement workable pricing regulations and enforce them to maintain stable price levels. The government should also through the Department of Higher Education and Training, establish a structure that connects the educational system with the industries in South Africa, allowing for the development of skills at the tertiary level and increasing employment.

ASSOCIATION OF ELECTRICITY CONSUMPTION, ECONOMIC GROWTH AND FDI IN INDIA

India is one of the largest producer and consumer of electricity in the world owing to being one of the most populous country in the world signifying the demand for electricity is only set to grow further. World has witnessed an era of economic growth aided pertinently by electricity consumption and growing demand. With FDI indorsed downright to this vital utilities sector, it becomes imperative to cognize the relationship of Electricity Consumption, Economic Growth and FDI in India. In this study we investigate the causal direction of relationship among Foreign Direct Investment, Electricity Consumption and Economic Growth in India by using time-series data for the period 1986–2021 and employing econometric models. We find two uni-directional causalities running from Electricity Consumption to Economic Growth and Economic Growth to FDI and a bi-directional causality between Electricity Consumption and FDI. The results of the study provide a novel perspective for policy makers while formulating policies related to the power sector and foreign direct investments in India. The focus of Policy makers should be on enabling electricity service providers to offer best services to commercial and non-commercial participants as it aids in Economic growth of the country. For enhanced economic growth a country like India must have good and world-class infrastructure, efficient and effective regulatory mechanism equitable for all stakeholders, an improved living standard for people of all economic strata and a stable, healthy business friendly environment coupled with policy stability through stable government.

THE ROLE OF THE PROCESSING INDUSTRY SECTOR IN REGIONAL ECONOMIC GROWTH (IN DUMAI CITY)

The purpose of this study is to determine the role of the processing industry sector in regional economic growth (in Dumai City). It can be concluded from the calculation results that the processing industry sector has a very large positive impact on the Gross Regional Domestic Product (GRDP) Prod uk in Dumai City, with an average of 54.82%. The manufacturing industry sector has increased every year from the 2010-2018 period. Thus, the role of the processing industry sector in the economic growthin Dumai City has a very positive impact and can increase the Gross Regional Domestic Product (GRDP) of the processing industry sector.

Perencanaan Strategi Pemulihan Ekonomi Berkelanjutan Pada Masa New Normal Di Kota Surabaya

The Covid-19 pandemic has had a considerable impact on the economy in the cityof Surabaya, especially in the fields of Micro, Small, and Medium Enterprises andthe creative industry, tourism, and employment. The City of Surabaya. By usingSWOT analysis, it can be concluded that although the economic growth of the Cityof Surabaya during the Covid-19 pandemic has decreased, the economic growthin the City of Surabaya is still positive and always above the national and EastJava economic growth and improved the economy after the covid pandemic. Theseinclude empowering MSMEs, integrating tourist destinations, both natural tourism,populist-based history, and religion, improving the quality of the workforce to suitthe company's needs, and so on.

Public Education Funding and Economic Growth IN Nigeria; ARDL-VECM and Causal Inference Approach

Considering the enormous impact of poor standard of educational system in Nigeria over the years, the study investigated the effects of public education funding on economic growth in Nigeria from 1985 to 2019. The paper used secondary data sourced from both Central Bank of Nigeria Statistical Bulletin and World Bank’s Development Indicators 2019. The paper employed Auto-Regressive Distributed Lag co-integration, Error correction mechanism and granger-causality tests as technique for data analysis. The ARDL bound test co-integration results revealed that RRETE, RCETE and Inflation have positive relationship with Economic growth. However, RETE, SEDU and PRI have indirect influence on Economic growth in Nigeria. Statistically, only RRETE has a long run causal effect on economic growth. ARDL Error Correction Regression output showed that RETE and RCETE are significant at 10% level while PRI is significant at 5% level this indicates the existence of short run causal relationship with the establishment of ECM long run equilibrium adjustment speed. The causal results revealed unidirectional inference between SEDU and RETE, PRI and RETE, PRI and RRETE with no feedback effect. Therefore, the study recommended educational funding targeted at secondary and primary education system in order to acquire productive skills and knowledge to stimulate economic growth and development in Nigeria. There is need to meet the UNESCO funding ratio for both recurrent and capital expenditure on education sector.

An Empirical Investigation of the Export-Led Growth (ELG) and Import-Led Growth (ILG) Hypotheses in Sierra Leone

This paper seeks to empirically examine the export-led growth and import-led growth hypotheses in Sierra Leone from 1980 to 2020. It employed the ARDL bounds testing approach to cointegration. The empirical results show that both the Export-led growth (ELG) and Import-led Growth (ILG) hypotheses are indeed valid in Sierra Leone. However, exports appear to be relatively more important than imports in driving economic growth in both the short and long run horizons. It is therefore recommended amongst others that the government continue to focus on strategies that will broaden the export base, while at the same time create a conducive environment for foreign investment that could result in the importation of capital goods into the country to support growth.

INNOVATION, CORRUPTION, AND ECONOMIC GROWTH IN EMERGING ASIA

In this paper, we investigate the impact of innovation and corruption on economic growth for 13 emerging Asian economies over the period of 2009 to 2018. Using global innovation and corruption indices, we show that innovation has no significant impact on growth. In contrast, corruption slows down growth in the region. Our results indicate that innovation in the region is not robust enough to attract growth and that corruption is the major hindrance to growth.

PENGARUH JUMLAH UANG BEREDAR TERHADAP INFLASI DAN SUKU BUNGA, SERTA TERHADAP INVESTASI DAN PERTUMBUHAN EKONOMI DI INDONESIA

Introduction: Monetary policy is one of the main instruments of macroeconomic policy. The government with monetary policy is able toinfluence the level of economic growth, employment, and the rate of inflation. The one of main monetary policy is controlling the money supply. Money supply has a widespread impact on other macro variables. This study analyzes the effect of the money supply to variable inflationand interest rates, as well as the effects of inflation and interest rates to investment and economic growth in Indonesia. Methods: This study used analysis of TSLS (Two Stages Least Square). The data used in Times Series. Data for the period 1973 until 2012.Results: From the tests showed that there was a significant effect ofmoney supply to inflation and interest rates. Inflation and interest rateshas no effect on investment in Indonesia partially. While there was thesimultaneous effect of inflation and interest rates to Investment inIndonesia. The research showed that significantly the investmentinfluence economic growth in Indonesia.Conclusion and suggestion: Research indicates that the variable in the money supply directly or indirectly have an impact on economic growthin a country, thus appropriate monetary policy should be given such a broad impact in an economy.

Analisis Pertumbuhan Ekonomi Jawa Tengah Periode 2013 - 2017

This study aims to determine and analyze the factors that influence economic growth in Central Java in the period 2013 to 2017. The aspects analyzed include variables economics growth (PDRB), Investment, Goverment Expendicture, Saving and Labor . The population of this study was 35 Regencies/Cities and the samples were 26 Regencies/Cities. The data used in this study were 130 data. The analysis technique used was multiple linier regressions. The result of this study indicated that Investment, Saving, and Labor had a positive effect on Economic Growth in Regencies/Cities of East Java in 2013-2017. But, that Goverment Expenditure had no effect on Economics Growth in Regencies/Cities of East Java in 2013-2017. While simultaneously indicated that Investment,Government Expenditure, Saving, and Labor had a significant effect on Economic Growthin Regencies/Cities of East Java in 2013-2017 with 38.9%, while remaining 61.1% wasinfluenced by other variables.

PERTUMBUHAN EKONOMI REGIONAL DI INDONESIA: PERAN INFRASTRUKTUR, MODAL MANUSIA DAN KETERBUKAAN PERDAGANGAN

This study discusses the analysis of the impact of infrastructure development,human capital and trade openness on regional economic growth in Indonesia using the paneldata method. The model was built based on the Solow growth model using road infrastructure,electricity infrastructure, health infrastructure, life expectancy, mean years of schooling and tradeopenness in 34 provinces in Indonesia. Estimation results obtained from this study using the fixedeffects model indicate that regional economic growth in Indonesia is influenced by electricityinfrastructure, health infrastructure, mean years of schooling, life expectancy, and trade openness.Whereas road infrastructure has a negative and not significant effect on regional economic growthin Indonesia. Life expectancy has the biggest impact on regional economic growth followed bymean years of schooling, health infrastructure, electricity infrastructure, and trade openness.

CARBON EMISSIONS AND ECONOMIC GROWTH IN AFRICA: ARE THEY RELATED?

The study the ARDL model, Mean Group (MG), and the Pooled Mean Group (PMG) model to examine the Environemtnal Kuznets Curve (EKC) hypothesis in 43 African countries pooled into 3 income groups from 1980–2016. The EKC hypothesis is accepted in only 21% of the sample but rejected in 70% of the countries in the total sample. This result shows that carbon emissions increase as economic growth increases in 79% of the countries while economic growth will lead to lower carbon emissions in only a few countries (21%). The study concludes that an increase in economic growth will induce higher emissions in most countries in Africa. These countries should take all possible policy actions such as the massive deployment of renewable energy, carbon tax policy, and the carbon emissions trading scheme to curtain growth in carbon emission.CARBON EMISSIONS AND ECONOMIC GROWTH IN AFRICA: ARE THEY RELATED?All authorsOlusanya Elisa Olubusoye & Dasauki Musa | https://doi.org/10.1080/23322039.2020.1850400Published online:21 December 2020Display full size

CAUSAL STRUCTURE OF EXPORT-PRODUCTIVITY NEXUS IN TURKEY

This paper examines the causal relationship between real exports and economic growth in Turkey for the period 2000Q1-2017Q1 by estimating Directed Acyclic Graphs (DAGs). In doing so, we attempt to shed light on both the direct and indirect causation between the two with respect to other mediating factors. The resulting DAG patterns suggest that economic growth follows real exports expansion in Turkey, while the other variables such as capital formation and foreign output of other industrialized countries are also significant determinants of productivity growth in Turkey.

Does economic freedom boost economic growthin Pakistan and India?

Does economic freedom boost economic growthin Pakistan and India?