Increase In GDP Growth Research Articles

Asymmetric effects of life and non-life insurance on economic growth in Saudi Arabia: A nonlinear analysis

This paper explores the asymmetric effects of life and non-life insurance on economic growth in Saudi Arabia. Quarterly data on insurance penetration rates and GDP growth from 2009 to 2022, obtained from the Global Economy, Saudi Arabian Monetary Authority, and World Bank databases, are utilized. A nonlinear autoregressive distributed lag (NARDL) model is employed to examine the relationships between insurance and growth. The results reveal a significant and asymmetric relationship between life insurance penetration and GDP growth. Specifically, a 1% increase in life insurance penetration is associated with a 0.3% increase in GDP growth in the long run, while a 1% decrease shows no significant effect. For non-life insurance, both increases and decreases demonstrate significant but asymmetric impacts on growth. A 1% increase in non-life insurance penetration corresponds to a 0.2% increase in GDP growth, whereas a 1% decrease is linked to a 0.15% decrease in GDP growth. These findings support the ‘supply-leading’ hypothesis, suggesting that the insurance sector can play a leading role in promoting economic growth. The results provide new quantitative insights into the relationship between insurance and economic growth in Saudi Arabia, offering valuable implications for policymakers. It is suggested that the insurance industry can be leveraged to foster economic growth by promoting life insurance and managing the asymmetric impacts of non-life insurance.

Dinamika Pembangunan Sumber Daya Manusia (SDM) terhadap Perekonomian dengan Kontribusai Pendapatan Asli Daerah (PAD) sebagai Pemoderasi

The vulnerability of Bali's economy, which only depends on the tourism sector during the Covid-19 pandemic, has given rise to the idea of economic transformation to develop other sectors. In this effort, human development is a key factor as a major economic actor. Human Development Index (HDI) as an indicator of human resource quality is thought to have a positive influence on the economy as seen from Gross Regional Domestic Product (GRDP) at constant prices. Original Local Government Revenue (OLGR) as financial capital is considered capable of strengthening empowerment programs and policies that directly touch the community and downstream can strengthen the economy. The data used is secondary data for the 2013-2022 period obtained from Regencies and Cities in Bali Province (panel data). This research was tested using Econometric Views (Eviews) software (panel data regression). The analysis techniques used include descriptive statistics, panel data model analysis, classical assumption tests, interaction tests or Moderated Regression Analysis (MRA) and hypothesis testing with analysis of the coefficient of determination and t test. The aim of the research is to determine the effect of HDI on GRDP and to find out whether OLGR is able to moderate the influence of HDI on GRDP. The results show that HDI has a significant positive effect on GRDP. This means that increasing HDI will have a positive impact on increasing GDP. OLGR strengthens the positive influence of HDI on GRDP. This means that OLGR is able to strengthen and have an impact on human resource development and ultimately increase GDP growth which is an indicator of regional economic growth. Suggestions that can be given from the results of human resource investment research can be a priority so that regional communities can become the driving force of the regional economy. It is hoped that the use of OLGR for empowerment programs and policies that touch the community can be implemented more optimally so that it can improve the quality of human resources and have an impact on positive economic growth.

Analysing the Mediating Influence of Share Markets on the Relationship between GDP Growth and Macroeconomic Variables in MENA and Developed Countries

This study examined the relationship between GDP growth and different macroeconomic variables including foreign direct investment, gross fixed capital formation, government expenditure on education, consumption expenditure, GDP per person employed, exchange rate, market capitalization, and inflation in case of MENA and developed countries. Furthermore, it tried exploring the mediating role of the share market in the relationship between economic development and various macroeconomic variables MENA & developed countries. The study has used panel data from the period of 2002-2021. The data has been taken from multiple sources i.e. World Development Indicators (WDI) by The World Bank, International Financial Statistics (IFS), several economic surveys of respective countries and Central Bank’s publications. The study reveals mixed order of integration among variables. Consumption expenditure is stationary in both panels, while expenditure on education is non-stationary. Real effective exchange rate is stationary under both panels, while GDP per employed persons is non-stationary. GDP growth rate, inflation, and market capitalization are stationary for both developed and Mena countries. However, gross fixed capital formation is stationary at first difference. The correlation matrix results show a weak correlation between consumption expenditure and educational expenditure, with a 9 percent negative correlation. For Mena countries, the study found a negative association between consumption expenditure and educational expenditure, with a 23% correlation. Real effective exchange rate is negatively associated with foreign direct investment, GDP per employed person, gross fixed capital formation, inflation, and market capitalization. For developed countries, the coefficient of FDI increases GDP growth rate by 97%, while gross fixed capital formation decreases GDP growth rate by 10.2 units due to 1 unit increase in gross fixed capital formation. Consumption expenditures increase GDP growth rate by 2% due to 1 unit increase, while inflation increases it by 5.9 units. Exchange rate is also positively related with GDP growth rate, with a 1% increase in exchange rate boosting it by 29%. The study found partial mediation of market capitalization in developed countries and uni-directional causality in Mena countries. Keywords: Market Capitalization, Mediation Analysis, Mena Countries, Economic Growth, Panel Data Analysis

SMEs as catalysts for economic development: Navigating challenges and seizing opportunities in emerging markets

Small and medium-sized enterprises (SMEs) play a critical role in the economic development of emerging markets, acting as catalysts for innovation, job creation, and poverty reduction. They are often the backbone of these economies, driving growth through their adaptability and entrepreneurial spirit. However, SMEs also face significant challenges that must be navigated to fully capitalize on their potential. One of the primary challenges SMEs encounter in emerging markets is limited access to finance. Traditional banks often view SMEs as high-risk investments due to their smaller size and lack of collateral. This financing gap can stifle their growth and innovation capabilities. To address this, microfinance institutions and digital lending platforms have emerged as crucial alternatives, providing SMEs with much-needed capital. According to the International Finance Corporation (IFC), improving access to finance for SMEs could increase GDP growth rates significantly in emerging economies. Another critical challenge is the lack of infrastructure, which can impede business operations and logistics. In many emerging markets, inadequate transportation networks, unreliable power supply, and limited internet connectivity hinder SME productivity and market reach. Governments and international organizations are increasingly investing in infrastructure development to create a more conducive environment for SMEs. The World Bank, for instance, has various programs aimed at enhancing infrastructure in emerging markets, thereby facilitating better business operations for SMEs. In terms of opportunities, the digital revolution offers vast potential for SMEs. Digital tools and platforms enable SMEs to reach broader markets, streamline operations, and improve customer engagement. E-commerce, in particular, allows SMEs to overcome geographical limitations and tap into global markets. Additionally, leveraging social media for marketing can significantly enhance brand visibility and customer acquisition. Furthermore, emerging markets often present a youthful and growing consumer base, eager for new products and services. SMEs can seize this opportunity by tailoring their offerings to meet local preferences and demands. This consumer-centric approach can lead to increased loyalty and market share. In conclusion, while SMEs in emerging markets face considerable challenges, the opportunities for growth and impact are immense. By improving access to finance, investing in infrastructure, and embracing digital tools, SMEs can drive substantial economic development. Policymakers, financial institutions, and international organizations must continue to support these enterprises to unlock their full potential and foster sustainable economic growth.

The Impact of Trade Liberalization on FDI Inflows and Economic Development

This paper investigates the impact of trade liberalization on foreign direct investment (FDI) inflows and economic development in the Czech Republic. Utilizing a mixed-methods approach, the study combines quantitative econometric analysis with qualitative case studies and interviews. The empirical results demonstrate a significant positive correlation between trade openness and FDI inflows, indicating that a 1% increase in trade openness is associated with a 0.5% increase in FDI inflows. Furthermore, the structural equation modeling (SEM) results reveal that a 1% increase in FDI inflows is associated with a 0.3% increase in GDP growth and a 0.2% increase in employment rates. These findings underscore the critical role of an open trade environment in attracting foreign investment and fostering economic development. The study also highlights the importance of other factors such as institutional quality, political stability, and infrastructure development in creating a conducive environment for FDI. Policy implications suggest that maintaining open trade policies, improving institutional frameworks, and investing in infrastructure and innovation are essential strategies for achieving long-term economic development in the Czech Republic and similar transition economies.

Some Remarks on the Report “Science and Higher Education vs. GDP” Prepared at the Initiative of the Conference of Rectors of Polish Economic Universities: An Analysis of the Convergence Processes in Selected Central and Eastern European Countries

Objectives: This paper summarises the findings of a report by Acedański et al. (2023) that focuses on the relationship between science and economic growth. The report was commissioned by the Conference of Rectors of Economic Universities (KRUE) and prepared by researchers from five public economic universities in Poland. The authors of the report and the KRUE aim to share their message with a wide audience that includes policymakers, academic experts, and students. Additionally, the article analyses the impact of research and higher education spending on convergence processes in Central and Eastern European countries. Research Design & Methods: The study examined different indicators, including government expenditure on basic research, higher education, and research and development. We utilised SURE models and observed that there was notable diversity in the convergence processes among the analysed countries. Additionally, we found a correlation between research spending and the rate of catching up. However, it is important to note that this relationship is not universal and varies across countries, even those within the same region. Findings: Acedański et al. (2023) report quantifies the relationship between science, higher education, GDP, and economic development in Poland. The report states that science and higher education sectors positively impact local economies, and individuals with higher education contribute the most to human capital resources in the economy, leading to GDP growth. However, Poland has a funding gap in research and science compared to highly developed countries as well as many Central and Eastern European countries. The report suggests that investment in a country’s education and higher education system is essential for generating developmental impulses and supporting its economy. Implications / Recommendations: The impact of scientific activity depends heavily on funding, especially through higher education institutions. In Poland, the salaries of academic teachers have decreased compared to other professions, and their position in the wage distribution is the worst it has been in the past two decades. Investing in a country’s education and higher education system is essential to support the economy. Acedański et al. (2023) suggest that a 0.1 percentage point increase in research and development expenditure, as a percentage of GDP, can lead to a 0.8 to 1.3 percentage point increase in GDP growth. However, the conclusion was based on panel data from EU countries, and the impact of scientific research on GDP may differ when analysing Central and Eastern European (CEE) countries. In this paper, we also present an extended analysis of the impact of science and education on economic growth through the lens of convergence processes. We show that the relationship above is not straightforward and represents substantial variability across countries, even those of the same region. Contribution / Value Added: Firstly, the report by Acedański et al. (2023) emphasises the importance of the science and higher education sector for economic growth. Their empirical research helps quantify the relationship between science, higher education, GDP, and economic development, offering a deeper understanding of this connection. The report complements previously published analyses and research on the topic. Secondly, our regional research shows that the convergence processes vary greatly among the analysed countries. The inclusion of spending on science, research, or higher education in the convergence equations has a varied impact on the assessment of the pace of the catching-up processes in the CEE region.

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

Impact of Foreign Aid on Economic Growth of Ethiopia

This study examines the impact of foreign aid on growth in Ethiopia based on time series data from 1980 to 2019. This study uses Autoregressive distributed Lag and an Error Correction to determine the long- and short-run impacts of foreign aid on growth. The empirical results show that, in the long run, foreign aid has a negative and insignificant effect on real GDP growth. However, gross domestic savings, exports, and inflation exert positive and insignificant impacts on GDP growth. Furthermore, Human capital and gross consumption expenditure exert a positive and significant impact on GDP growth, and gross capital information has a negative and significant impact on GDP growth. Thus, Ethiopia’s national development policy should focus on the productive utilisation of domestic savings to increase GDP growth rather than depend on external capital inflow, which is uncertain even when donor countries face long recessions. JEL Codes: E1, E2, E3

Electricity generation and China's GDP growth under dual control policy

To achieve the carbon neutralization plan by 2060, China implemented the “Dual Control” ( Neng Hao Shuang Kong in Chinese) policy in 2015 by limiting the energy intensity and consumption, leading to forced slowdown of energy-related production and consumptions, which in turn hampered China's economic growth. The economic impact of energy shortage has been discussed in such studies as Cheng et al., the economic consequences of the new policy remain unanswered. In this article, we select China's provincial GDP and electricity generation data from 2001 to 2021 to perform causality tests and a double log model which delineates the nexus between GDP growth and electricity generation. We find that (a) electricity generation growth Granger causes GDP growth but not vice versa, and (b) a 1% increase in electricity generation growth will lead to 0.17% increase in GDP growth. The significance of the finding is: as coal still primarily fuels electricity generation, dual control will further hinder China's economic development sans significant enhancement of electric system or expansion of renewable energy, our findings thus support an upgrade of current grid network by China Power International Development; an expansion of renewable capacity such as a proposal of 400 GW new energy project; and construction of energy storage devices such as the CGD Group thermal storage System and Yingcheng Compressed Air Energy Storage System.

Assessing the Role of Population Size on GDP Growth Rate: A Concise Review with Lessons from China

While population size can determine the size of human capital of a country which is essential for economic growth. It may not necessarily be a major factor to influence GDP growth rate. Malthusian theory of population postulates that increase in population size would create hunger, starvation and therefore stagnate economic prosperity. On the other hand, the Endogenous growth theory demonstrates the significance of population growth in facilitating economic growth via human capital development, entrepreneurial skills and innovation among others. China demonstrated during its rising economic prospects that the size of population significantly and directly influences economic growth. However, this review shows that over the past few years the dynamics has shifted with recent data indicating that China’s growth is not dependent on its population size. Therefore, for population size to increase GDP growth rate, good policies that target human capital development must be put in place.

Key drivers of the evolution of the sports management model demonstrated by an example of Armenia and EU Countries

The problem of the successful functioning of organizations and institutions, including sports-related ones, has become more acute in view of growing turbulence of the exogenous and endogenous environment. Building modern management model and its implementation in the sports industry is a key tool for solving this problem. The aim of the article was to determine the specifics of building modern management model and its implementation in the sports industry. The research involved the method of synthesis, stakeholder analysis, statistical analysis. The method of strategic analysis formed the methodological framework of the study. The study identified key drivers for the development of the sports management model in terms of technological and social innovations, as well as social entrepreneurship. The key role of the relationship between the micro and macro levels in the context of the model is emphasized. The relationship between the state policy in the field of sports and the management goals of sports organizations is identified. The effectiveness of the proposed changes in the sports management model was assessed on the basis of the EU statistics. The study proposes that sports management model should have a balanced structure in the context of blocks of strategic and operational management with a particular focus on human capital management, financial and operational efficiency. In particular, it is noted that EU experienced a significant increase in GDP growth associated with the sports industry from 1.93% (2015) to 2.16% (2020) due to sport management model’s enhancement. The analytical tool was built on the basis of the assessment of strategic gaps between the current and target state in the context of the model. Keywords: Digitalization, Technological innovations, Social innovations, Sport management, Sports financing, Grant, Stakeholder.

Pengaruh Utang Luar Negeri Terhadap Pertumbuhan Ekonomi Indonesia

The purpose of this study is to determine the existence of influence, relationship, and behavior of foreign debt on economic growth. The Vector Error Correction Model method is used on time series data to answer this goal. The results showed that foreign debt had a significant negative influence on economic growth during the period. Similarly, inflation and exchange rates are chosen to have significant negative influences. Meanwhile, exports have a significant positive influence on growth. Savings and road length as infrastructure proxies also have a negative but not significant influence on economic growth. Meanwhile, there is a long-term relationship or cointegration between economic growth, external debt, savings ratio, export ratio, inflation, road length, and exchange rate. The external debt response to shocks to economic growth was negative. That is, an increase in economic growth will bring foreign debt to decrease. In the first year, the external debt response to the shock of an increase in GDP growth of 1 standard deviation was responded negatively at -23.63 and began to reach equilibrium in the 5th period. This negative influence shows that Indonesia's foreign debt has been a burden on economic growth

Impact of Non-Performing Loan and Macro-Economic Variables on Financial Performance of Commercial Banks in Nepal

This study aims to measure the impact of non-performing loan and macro-economic variables on financial performance of commercial banks in Nepal. The dependent variables are return on assets, return on equity and capital adequacy ratio which measure the financial performance and independent variables are NPL, GDP growth, inflation and interest rate measure the macro-economic variables. Primary and secondary data were collected through the structured questionnaire and annual reports of commercial banks and economic survey respectively. Convenience sampling was used to select the commercial banks located in Pokhara for collecting primary data of 80 respondents. Stratified simple random sampling was used to select 10 commercial banks (three JV and seven NJV banks) out of total population of 27 commercial banks for a time period of 2073/74 to 2077/78 for collecting secondary data. Multiple regression analysis, correlation analysis and descriptive statistics were used in analyzing the data. The primary data analysis concluded that most of the respondents have knowledge about the provision of non-performing loan according to NRB directives among bank staffs. The questionnaire survey shows majority of respondents agree with the statement macro-economic variables of non-performing loan affect the financial performance. The analysis of secondary data in correlation analysis reveals that the relationship between ROA, ROE and CAR with NPL is negative and insignificant. Similarly, the relationship between macro-economic variables with NPL is insignificant for JV and NJV banks. The relationship between ROA and ROE with GDP growth and interest rate is positive and significant for JV banks. The positive effect of GDP growth and interest rate on profitability indicates that increase in GDP growth and interest rate ultimately increases financial performance of JV banks. The regression analysis reveals that relationship between NPL with ROE is negative and significant for NJV bank which implies that increase in NPL decreases ROE. Likewise, this study also helps the future researchers to conduct future research on impact of NPL on firm performance to extend with new data and sample.

How does people’s liberation army related business closure affect the local economy?

People’s Liberation Army (PLA) related business was rampant in China in the 1980s and 1990s, and they significantly disrupted the local economy. However, due to limited data about PLAs, this issue is rarely investigated and thus the negative impact is hardly measured. In this paper we introduce a new proxy for measuring the approximate level of PLA related business in a specific city, PLA hospital score, to identify cities that are more affected by PLA related business closure. We then employ a difference-in-differences (DID) framework and show that PLA related business closure does bring positive effects to China’s local economy, about a 2% increase in GDP growth per year. We also find that this effect is more significant in cities with median economic size and cities that rely more on secondary and tertiary sectors. We finally provide a possible channel of this effect, which mainly works through providing a more efficient and competitive market to local private firms as well as an investment-friendly environment that attracts foreign investments.

ANALISIS FUNDAMENTAL SAHAM PT INDUSTRI JAMU DAN FARMASI SIDO MUNCUL TBK (SIDO)

Fundamental analysis is carried out through the Top Down Analysis approach. This analysis is carried out sequentially starting from assessing the overall state of the economy, industry strength and company performance. Macroeconomic analysis is carried out by assessing the overall economic condition of a country such as GDP, interest rates, and exchange rates. Industry analysis assesses potential developments in industries related to companies, while company analysis uses financial ratio analysis which includes liquidity ratios, activity ratios, profitability ratios, solvency ratios, and market value. Macroeconomic analysis shows that there is an increase in GDP growth, a decrease in the BI-rate, and a depreciating rupiah exchange rate. The pharmaceutical industry in Indonesia has great opportunities when it comes to Indonesia's demographic conditions. Assessment of the company's financial performance results that the liquidity ratio has a value above the standard, which means the company has sufficient current assets to pay off its short-term obligations. The activity ratio based on the calculation results has a low inventory turnover. The profitability ratio has an increasing value which means the company is able to manage assets properly to earn a profit. The solvency ratio shows that the company is able to pay its long-term debt. Overall, in terms of market value, some ratios are good, but there is a decrease in dividend payments when viewed from dividend per share. However, this decline is not always bad because from the company's management point of view, a growing company will hold its profits to support future growth. The company reinvests its profits into the company so that the share price increases.

The Model of GDP Growth in ASEAN-4 Countries: Control of Corruption as an Intervening Variable

The purpose of this study is to analyze various macroeconomic factors that affect Gross Domestic Product growth in ASEAN-4 countries. The type of research is descriptive and explanatory. The research method used is the quantitative method. Based on the phenomenon, purposive sampling is used to determine the countries studied. Using secondary data, the panel data is formed from a combination of countries and a certain period of years. Multivariable regression is used to process panel data. The results show that inflation rate, political stability, and control of corruption have a significant effect on GDP growth. The novelty of this research is the new model of GDP growth in ASEAN-4 countries where control of corruption serves as an intervening variable that affects GDP growth. The findings suggest that to maintain an increase in GDP growth in this region, the governments should keep the inflation rate under control and continue striving to reduce corruption. Controlling the level of corruption can be done by maintaining the stability of the political situation and controlling the inflation rate.

Compatibility between government spending and broad money supply in Iraq's GDP growth for the period (2004-2020)

The study dealt with the compatibility between government spending and broad money supply in the growth GDP, and it aimed to show the impact of three independent variables (current spending CS, investment spending Is, broad money supply Ms2) on the dependent variable (GDP), for the period (2020 -2004), the standard model was estimated according to the ARDL method, and according to the boundary test of join integration, it was found that there is a relationship of join integration of the estimated model. and the most important results of the study were that current spending and broad money supply have a positive impact on the growth of GDP at prices. However, this increase in GDP growth did not come as a result of diversifying revenues across the productive sectors of GDP, and that the concurrence of the short-term objectives of government spending and broad money supply did not create a solid ground for investment and a real increase in gross domestic product. At current prices, but rather a it led to an increase in domestic aggregate demand, which was met through imports as a result of the lack of a flexible production apparatus, which caused the phenomenon of stagflation.

External Debt, NODA, and GDP Growth Nexus for South Asian and Southeast Asian Selected Economies

The fundamental aim of this study is to fetch out the influence of NODA (net official development assistance) and EDS (external debt stock) on GDP growth in South Asian and Southeast Asian designated economies over 1971 to 2019. This study refers to the Solow-Swan model of economic growth as hypothetical framework in its elementary sort and employ factors such as NODA, EDS, savings, capital, depreciation, governance, and in addition total natural resources rent as control variable. Using panel data sourced from WDI (world development indicators). This study employed various econometric techniques comprise FEM (fixed effect model), panel cointegration, panel dynamic least square (DOLS), and Granger causality test for desired regression estimations. Empirical estimations evident that EDS has a negative and significant impact on GDP growth whereas, NODA had a negative and insignificant impact on GDP growth. A positive and significant influence of savings on GDP growth observed and estimation confirm that by increasing 1% in savings may cause an increase in GDP growth by 13.19 units. Capital has a positive and significant impact on GDP growth and estimation outcomes confirm that an increase of 1% in capital may cause an increase of 10.14 units. A negative and significant impact of depreciation on GDP growth revealed and it is intended that increasing 1% in depreciation may cause a decrease in GDP growth by 5.26 units. A positive and significant impact of TNRR on GDP growth revealed and estimations confirm that an increase of 1% in total natural resource rent may cause an increase in GDP growth by 0.099 units. While, impact of governance on GDP growth revealed insignificant. Lastly, it is also endorsed that a uni-directional Granger causality runs from GDP growth to EDS, EDS to NODA, and no causal relationship has been confirmed between NODA and GDP growth in SA and SEA designated economies over 1971 to 2019.

External Debt, NODA, and GDP Growth Nexus for South Asian and Southeast Asian Selected Economies

The fundamental aim of this study is to fetch out the influence of NODA (net official development assistance) and EDS (external debt stock) on GDP growth in South Asian and Southeast Asian designated economies over 1971 to 2019. This study refers to the Solow-Swan model of economic growth as hypothetical framework in its elementary sort and employ factors such as NODA, EDS, savings, capital, depreciation, governance, and in addition total natural resources rent as control variable. Using panel data sourced from WDI (world development indicators). This study employed various econometric techniques comprise FEM (fixed effect model), panel cointegration, panel dynamic least square (DOLS), and Granger causality test for desired regression estimations. Empirical estimations evident that EDS has a negative and significant impact on GDP growth whereas, NODA had a negative and insignificant impact on GDP growth. A positive and significant influence of savings on GDP growth observed and estimation confirm that by increasing 1% in savings may cause an increase in GDP growth by 13.19 units. Capital has a positive and significant impact on GDP growth and estimation outcomes confirm that an increase of 1% in capital may cause an increase of 10.14 units. A negative and significant impact of depreciation on GDP growth revealed and it is intended that increasing 1% in depreciation may cause a decrease in GDP growth by 5.26 units. A positive and significant impact of TNRR on GDP growth revealed and estimations confirm that an increase of 1% in total natural resource rent may cause an increase in GDP growth by 0.099 units. While, impact of governance on GDP growth revealed insignificant. Lastly, it is also endorsed that a uni-directional Granger causality runs from GDP growth to EDS, EDS to NODA, and no causal relationship has been confirmed between NODA and GDP growth in SA and SEA designated economies over 1971 to 2019.

Foreign Direct Investment and Economic Growth Nexus: Empirical Insight from Guinea

Although the predominant theoretical literature presumed foreign capital inflows to carry broad benefits to recipient nations, this assumption has been recently questioned in Guinea since the resulting GDP growth has weakly impacted social welfare. This empirical study offers a better insight of the extent to which foreign direct investment (FDI) influences economic growth in the Guinean context over the period 1990-2017. Fiscally, the per GDP FDI net inflows and GDP growth rate are respectively employed as FDI estimate and economic advancement indicator. The findings established in this study included: first, foreign direct investment in the long run positively affects economic advancement in Guinea at 1% significance level. This outcome suggests that 1% raise in FDI per GDP leads to 0.45 increase in GDP growth. Moreover, this finding is in line with the main literature related to foreign investment induced effects in Africa and other developing regions. Second, the short run coefficients suggest the same story exposed by the long run investigation. FDI per GDP [L1], [L2] positively and significantly influences economic growth in the Guinean context. Even though there is strong evidence that FDI positively affects growth in Guinea, government should consider the form of foreign investments to be promoted in the country. The study recommends that resource seeking type without transformation must be discouraged for the benefit of market or efficiency seeking investment. By doing so, Guinean economy will experience healthier and welfare enhancing growth.