Economic Growth Nexus Research Articles

Nexus of innovation, renewable energy, FDI, trade openness, and economic growth in Germany: New insights from ARDL method

Nexus of innovation, renewable energy, FDI, trade openness, and economic growth in Germany: New insights from ARDL method

Investigation of Monetary Policy and Economic Growth Nexus in Nigeria: Any Cointegration?

The debate surrounding the relationship between monetary policy and economic growth remains a central issue among academics and policymakers, as many countries continue to grapple with economic challenges. To explore this nexus, this study employs a Vector Error Correction Model (VECM) to examine the monetary policy–economic growth relationship in Nigeria, using annual data spanning from 1986 to 2021. The findings reveal that monetary policy indicators exert a positive impact on economic growth. Moreover, the results indicate a relatively high speed of adjustment, allowing the system to quickly return to equilibrium following short-run shocks. Based on these outcomes, the study recommends that monetary authorities closely monitor money supply and the monetary policy rate, given their significant potential to directly influence economic growth.

Institutional Quality and Economic Growth Nexus: An Empirical Evidence from Nigeria

Economic literature has shown the importance of institutional quality framework in facilitating growth in many economies. This study examines the nexus between institutional quality and economic growth in Nigeria over the period 1981 – 2023. The study tried to ascertain the effect of institutional quality on economic growth in Nigeria. Time series data from the World Development Indicator on the following variables: Real GDP (proxy for economic growth), real interest rate, gross fixed capital formation, labour force size and institutional quality index (generated) were used. The Augmented Dickey-Fuller test and the Bounds Testing for cointegration were conducted. The ARDL estimation technique was employed to determine the impact of institutional quality on economic growth in Nigeria. The findings of this study indicate that institutional quality negatively and significantly impacts economic growth in Nigeria; it also showed that a long-run relationship exists between institutional quality and economic growth. This study suggests that the government should formulate and execute a technology-centric strategy designed to elevate the standard of institutions in diverse sectors and to cultivate synergistic partnerships between the public and private sectors to propel endeavours focused on institutional advancement.

CAUSAL RELATIONSHIP BETWEEN EXPORTS, IMPORTS AND ECONOMIC GROWTH: TIME SERIES STUDY FOR REPUBLIC OF UZBEKISTAN

This study investigates the causal nexus of imports, exports, and economic growth in Uzbekistan using time series evidence and advanced econometric techniques. The empirical analysis begins with unit root testing by employing the Augmented Dickey-Fuller (ADF) test, followed by the Johansen cointegration test to establish long-run equilibrium relationships between the variables. A Vector Error Correction Model (VECM) is employed to test short- and long-run causality. The results reveal unidirectional causality from imports to exports, changes in import activity significantly influence export performance. The study further finds bidirectional (bicausal) relations between imports and economic growth and between exports and economic growth. The implications of these findings are that both trade components do play a significant role in the economic development of Uzbekistan. The results emphasize the importance of balanced trade policy that benefits both growth in imports and promotion of exports in order to achieve long-term economic growth.

The nexus of polytechnic education expansion, economic growth, and unemployment: A two-decade perspective in Nigeria

This study explores the dynamic relationship between polytechnic expansion, economic growth, and unemployment in Nigeria from 1999 to 2023 using secondary data obtained from the Central Bank of Nigeria and the National Bureau of Statistics. Key macroeconomic variables analyzed include the Number of Polytechnics (NP), Gross Domestic Product (GDP), GDP Growth Rate (GDPGR), and Unemployment Rate (UNER). Descriptive analysis revealed significant growth in polytechnic institutions, alongside persistent unemployment and fluctuating economic performance. The study employed the Augmented Dickey-Fuller (ADF) test to assess stationarity, followed by a cointegration test and the Autoregressive Distributed Lag (ARDL) model to examine both long- and short-run dynamics. The results confirmed a statistically significant long-run equilibrium relationship among the variables, with the ARDL bounds test yielding an F-statistic of 15.84, surpassing the critical upper bound. Notably, the Number of Polytechnics (log_NP) exhibited a strong positive long-term effect on GDP growth (p = 0.0014), reinforcing the role of technical education in economic development. The error correction term (−0.4819, p = 0.0457) was negative and significant, indicating that deviations from the long-run path adjust moderately at a speed of 48.2% annually. Granger causality analysis further showed that polytechnic expansion Granger causes GDP growth, though not GDP directly, implying indirect effects through skill development and labor market productivity. These findings underscore the importance of aligning technical education with industry needs and improving the employability of graduates. The study recommends policy strategies focused on curriculum reform, funding support, and institutional-industry collaboration to fully harness the growth potential of polytechnic education in Nigeria.

Between Finance and Growth: The Role of Financial Development in Promoting Economic growth in Africa

Purpose: This study investigates the impact of financial development on economic growth, with a particular focus on the roles of financial institutions' access, depth, and efficiency. It aims to provide a nuanced analysis of the finance-growth nexus and evaluate whether financial development acts as a catalyst for or a constraint on economic growth within the African context. Design/Methodology/Approach: The study employs the Panel ARDL (Autoregressive Distributed Lag) approach to analyze the short-run and long-run effects of financial development on GDP. The analysis is conducted on a panel of 31 African countries over the period 1990–2021, capturing both cross-country variations and dynamic relationships between financial development indicators and economic growth. Findings: The findings emphasize that financial access and depth are key drivers of long-term economic growth, whereas financial efficiency exerts a negative impact. In the short run, financial access significantly enhances GDP, while financial depth may impede growth due to transitional costs or structural imbalances. Moreover, the heterogeneous short-run effects across countries underscore the pivotal role of institutional and economic factors in shaping the financial development and economic growth nexus. Practical Implications: Policymakers should prioritize financial inclusion and sector depth while addressing inefficiencies that may hinder economic performance. Strengthening regulatory frameworks and improving financial institutions’ operational effectiveness can foster sustainable economic growth. Originality/Value: This study provides new empirical evidence on the finance-growth nexus in African economies, considering multiple dimensions of financial development and utilizing a robust econometric approach (Panel ARDL). It contributes to the debate on financial development by distinguishing between access, depth, and efficiency. Paper Type: Research Paper.

Remittance and economic growth nexus in BRICS countries: Evidence from PSTR with endogeneity

Remittance and economic growth nexus in BRICS countries: Evidence from PSTR with endogeneity

Embedding Concepts of Sustainable Development in Environmental Education

Humans evolved in the realm of nature. During evolution, anthropogenic activities led to an imbalance of natural ecosystems thereby causing environmental disasters. An increase in population, rapid industrialization, urban development, and changes in food consumption patterns are major drivers of environmental degradation. Though these are inevitable as a part of development, the nexus of environmental degradation and economic growth are directly linked with the conservation of various environmental compartments including soil, water, air, and biodiversity. Hence, sustainable development is considered the ultimate goal of the interrelationship of Man and the environment. In this context, environmental education is the need of the hour in educating society about the rational use of natural resources and the importance of Sustainable Development. To build a responsible society, the idea of including environmental education in the broader scope of education for development is imperative. Therefore, to assess the importance of environmental education for sustainable development, a perspective on Sustainable Development Goals (SDGs) from college students is attempted. The major objective of the paper was to assess the sensitization and dissemination of skills, attitudes, and behavior of the students with respect to Sustainable Development of Goals in Environmental Education. Methods of environmental education for sustainable development were imparted to the experimental and control group of students. Results indicated a significant difference between the groups in terms of environmental education, perception, and skills of the students from both groups. Further, students who imparted the knowledge on SDGs in Environmental Education showed more sensitization and perception with respect to SDGs, especially on water, biodiversity, climate change, poverty & hunger when compared to the students who were exposed to the conventional teaching methods of environmental education. Outcomes of the study contribute to the development of new methods of environmental education for sustainable development among college students.

Policy, Profits, and Palm Oil: A Bibliometric Synthesis of the Economic and Environmental Payoffs

The global palm oil industry sits at the nexus of economic growth and environmental sustainability, generating both substantial financial returns and significant ecological concerns. This study presents a bibliometric synthesis of scholarly literature on palm oil, with particular focus on the interplay between policy frameworks, profitability, and environmental outcomes. Using the Scopus database, a total of relevant publications from 2000 to 2024 were analyzed through VOSviewer software to identify trends in co-authorship, citation patterns, and keyword co-occurrence. The findings reveal that "palm oil" and "sustainable development" serve as thematic anchors linking diverse domains such as biofuel production, deforestation, land use change, and economic valuation. Temporal analysis indicates a thematic evolution from environmental critiques toward techno-economic innovation and governance mechanisms. Collaboration networks highlight Malaysia and Indonesia as dominant contributors, with growing international partnerships across Europe, North America, and Asia. Despite the increasing academic attention to sustainability, the study identifies gaps in policy evaluation and interdisciplinary integration. The discussion offers actionable insights and policy recommendations to bridge these gaps, emphasizing the need for holistic, evidence-based strategies that align economic development with environmental integrity in palm oil governance.

Effects of institutional quality and public expenditure on economic growth nexus in a small open economy

This research aims to analyze the influence of institutional quality on the relationship between economic growth and public expenditure in a small open economy. This research uses the autoregressive distributed lag (ARDL) methodology. The results showed that (1) institutional variables have a significant and positive moderating effect on the relationship between public spending and economic growth; (2) lending rates that are too high hurt economic growth because they keep the private sector from borrowing money; and (3) inflation rates that are too high hurt economic growth rates. In optimizing the moderating impact of institutional quality on the relationship between public expenditure and economic growth, the government should adopt policies that build strong institutions through consistency in upholding the rule of law. Specific and concrete policy recommendations include a need to address the endemic problem of corruption, boost the economy’s industrial productivity, stimulate private sector investment participation in the economy, moderate excessive lending rates, and encourage the crowding-in of the private sector so that the private sector can readily access funding for business expansion.

Financial Sector Development and Economic Growth Nexus in Nigeria: Evidence from Autoregressive Distributed Lag and Toda-Yamamoto Causality Techniques

The paper investigated financial sector development and economic growth nexus in Nigeria using annual time series data spanning 1981 to 2023. The Augmented Dickey-Fuller, Phillips-Perron and Zivot-Andrews unit root tests reveal that the variables have a mixed order of integration, I(0) and I(1). This necessitated the adoption of the autoregressive distributed lag (ARDL) model and the Toda-Yamamoto causality test. The ARDL bounds test confirmed existence of a long-run relationship between financial sector development related variables and economic growth proxy by real gross domestic product (RGDP). Both short-run and long-run impacts were estimated. Findings indicate that financial access and financial depth made negative and insignificant impact on RGDP whereas credit to the private sector and interest rates made positive and significant impact on RGDP in both periods. Financial efficiency had a positive but insignificant impact on RGDP. A bidirectional causality between credit to the private sector and RGDP; and unidirectional causality from interest rates to RGDP were established. Financial access, financial depth and financial efficiency have no causality with RGDP. Based on these findings, the study concludes that financial sector development contributed significantly to economic growth in Nigeria within the period under review, and recommends that financial institutions and their regulatory bodies should increase credit to private sector, access, depth and ensure strict implementation of regulatory policies and use instruments such as interest rate to regulate the economy, to boost the growth of the Nigerian economy.

Economic implications of Demographic Dividend in India: An Analysis

The Economists and Demographers are debating for a long on the Population Change and Economic Growth nexus that whether population growth promotes, hinders or nothing doing in the development process. In the population dynamics, the changing in the age structure has a number of socio, economic and political implications and hence policymakers with a broad view of development and the complex relation between economic and human development must factor these effects of changing age structure into decisions about their countries’ future. In most of the developing and emerging economies whose mortality and fertility rates are beginning to fall, there is an opportunity for governments to capitalize on the consequent demographic transition, where the number of working age adults grows large relative to the dependent population and potentially acts as a major economic spur. The demographic dividend is the consequence of the demographic transition, this phenomenon occurs when the birth rate begins to decline and the age structure shifts to the working-age group. Number of empirical studies indicates that the overall effect of an ageing national population on total labour productivity is quite small compared to the influence of other factors such as education and institutional support. Generally, a youthful and dynamic population brings fresh ideas and energy to the economy, fostering innovation and entrepreneurship. Additionally, a growing working-age population stimulates consumer demand, fuelling domestic production and creating new job opportunities. A larger share of working-age individuals compared to dependents can also ease the financial burden on social services and government support systems. By harnessing these positive outcomes, developing economies can accelerate economic growth further, improve living standards for all and enhance global competitiveness. Based on these observations, a modest attempt is made to study the implications of Demographic Dividend and Economic Growth relations in India through the data published by various Government Institutions as Reports and Statement like Population Statistics, RBI Bulletin, World Bank Report, Economic Surveys, etc. It is advocated that the government can intervene to realize the country’s ongoing demographic dividend by increasing the rate of productivity growth by investing in human capital via educational policies, worker training, entrepreneurial skill and health programs; further, encouraging research and development will also result in a higher rate of productivity growth. The findings could lead to better-targeted population strategies, more effective public policies, and a deeper academic understanding of socio, economic and environmental implications of demographic dividend in the context of an increasingly complex demographic structure at macro level.

Taxation and Economic Growth Nexus: Using ARDL and BOND Testing Procedures

This study analyses the nexus of taxation on economic growth using ARDL and BOND procedures. Pre-estimation tests were carried out to determine homoscedasticity, serial auto correlation, multicollinearity and normality of the variables. The coefficient of determination showed that 77.37 percent of the variation in GDP is explained by in direct taxes, other taxes, interest rate and foreign direct investment. The findings further revealed that the coefficient of indirect taxes was negative and individually significant in influencing the economic growth in Sierra Leone in the short run. On the other hand, the coefficients of interest rate are revealed to be positive and separately significant in affecting the economic growth in Sierra Leone in the short run. In view of these findings, it implies that indirect taxes increase consumption and reduce savings.

Analysis of stock market development, financial deepening and economic growth nexus in Nigeria and South Africa

Purpose The purpose of this study is to estimate the impact of stock market development and financial deepening on economic growth in Nigeria and South Africa. Data were collected from the World Bank and the statistical bulletin of the Central Bank of Nigeria. Design/methodology/approach The autoregressive distributed lag (ARDL) model was used in the study to capture the short and long run relationships among the variables. Findings The results of the estimation for Nigeria showed that only total value of shares traded (TVT) have a statistical significant impact on economic growth in the short run, while market capitalization, private sector credit, turnover ratio (TNR) and broad money have insignificant impact on growth. In the long run however, TVT, broad money and TNR were the only variables that have a significant impact on growth. Stock market has a positive relationship with economic growth but it is more visible in emerging markets like Nigeria. The results for South Africa showed that only broad money have a statistically significant impact on growth in the short run while all other variables except TNR have a significant growth on growth in the long run. The error correction model results showed that the model adjusts to equilibrium in the short run. Thus, about 6% and 27% of the disequilibrium between the independent variables and the dependent variable is corrected each year for the Nigerian and South African economies respectively. Originality/value This paper is among the first to examine the impact of stock market development and financial deepening on economic growth in Nigeria and South Africa comparatively, while adopting the ARDL modeling approach. Hence, this study recommends that policymakers and monetary authorities should formulate policies that will improve the performance of the stock market and encourage more participation. This study emphasizes that the formulation of appropriate policies is not sufficient in itself; proper monitoring and implementation of these policies are instrumental to improving stock market performance and subsequently contributing to economic growth.

Crude Oil Price Volatility and the Nigerian Economy

This research analyzed crude oil price volatility and the Nigerian economy for the period 1990:Q1-2023:Q4. The independent variables were crude oil price, exchange rate and oil revenue while the dependent variables were GDP, government revenue, foreign exchange reserve and income level (per capita income). Four models were formulated. Data were analyzed using the Generalized Autoregressive Conditional Heteroskedasticity (GARCH). The results revealed strong evidence of volatility clustering in crude oil prices; the availability of new crude oil prices increased conditional volatility by a high magnitude. There was a significant negative effect of crude oil price volatility on the growth of the Nigerian economy while crude oil price volatility increased Nigeria’s foreign reserve, government revenue and income level. In addition, the exchange rate and oil revenue significantly increased the crude oil price volatility – an economic growth nexus in Nigeria. The study concluded that crude oil price hurts the Nigerian economy. However, crude oil price volatility exerted a positive effect on government revenue, foreign exchange reserve and income level in Nigeria during the period of the study. It was recommended that the government should devise a strategy to deviate the economy away from oil dependency to make the economy less vulnerable to oil price shocks.

The Keynesian Hypothesis in Vietnamese Provinces: The Instrumental Effect of Tax Revenues

The Keynesian Hypothesis posits that public spending fosters economic growth by enhancing infrastructure, healthcare, education, and social welfare. While studies focusing on provincial governance are essential for understanding local policy impacts, the current literature often faces limitations due to data availability. This study is the first to revisit the Keynesian Hypothesis using data from 63 Vietnamese provinces spanning 2012 to 2019. A two-stage least squares approach was used to account for the instrumental role of taxation in the public spending–economic growth nexus. The study confirmed the hypothesis at the provincial level, emphasizing the importance of taxation and budgeting in mediating and sustaining the positive impacts of public spending on economic development. The study indicated that Vietnam continues to operate as a labor-intensive economy, highlighting the urgent need for a transition to a more capital-intensive model. Among other factors, provincial governance competitiveness is crucial for attracting and facilitating businesses, thereby promoting local and national economic growth. Several implications can be drawn regarding the optimization of tax structures, enhancing the effectiveness of public spending, investing in human capital development, and strengthening local governance to create a more favorable business environment. These insights are vital for policymakers aiming for sustainable economic advancement.

The nexus of economic growth, energy prices, climate policy uncertainty (CPU), and digitalization on ESG performance in the USA

The nexus of economic growth, energy prices, climate policy uncertainty (CPU), and digitalization on ESG performance in the USA

Data science of renewable energy integration: the nexus of energy, environment, and economic growth by Yuichi Ikeda Springer, 2024, pp. xviii + 324 price: EUR 129.99 (hardcover), EUR 106.99 (softcover) ISBN: 9789819987788 (hbk); 9789819987818 (pbk); 9789819987795 (ebk)

Data science of renewable energy integration: the nexus of energy, environment, and economic growth by Yuichi Ikeda Springer, 2024, pp. xviii + 324 price: EUR 129.99 (hardcover), EUR 106.99 (softcover) ISBN: 9789819987788 (hbk); 9789819987818 (pbk); 9789819987795 (ebk)

Education, Poverty, and Economic Growth Nexus in Pakistan

This study examines the correlation between education, poverty reduction, and economic growth in Pakistan for the period 1972 to 2023. The analytical procedure of Autoregressive Regressive Distributed Lag (ARDL) reveals that long-run relationships are evident in education, poverty, and economic growth. Education positively influences economic growth and is found to reduce poverty. The study emphasized the connection between economic growth, poverty, and education, highlighting the importance of education in improving socioeconomic standing and reducing poverty. The study concludes that education is a major factor contributing to Pakistan's economic growth and poverty alleviation. It advocates policies promoting economic growth and addressing poverty issues.

Energy diversification and economic growth nexus revisited: cross-regional empirical evidence from the CAR GCC and SAARC

Purpose The increasing use of fossil fuels and energy security concerns have led to a growing emphasis on sustainable economic growth and transitioning to a green energy system. This study aims to examine the relationship between energy diversification and economic growth in Central Asian Republics (CAR), Gulf Cooperation Council (GCC) and South Asian Association for Regional Cooperation (SAARC) from 2005 to 2022. Design/methodology/approach This study examines the relationship between energy diversification and economic growth in CAR, GCC, and SAARC from 2005 to 2022 by using nonlinear panel autoregressive distributed lag and augmented mean group estimating methodologies. Findings The findings demonstrate that with an increase in the long-term diversity of energy sources, developed nations like the GCC and developing nations like Kazakhstan, Kyrgyzstan and Uzbekistan from Central Asia and India, Bangladesh and Pakistan from South Asia experience favourable economic growth. However, energy diversification has an inverse relationship with economic growth in least-developed economies like Afghanistan, Sri Lanka, Turkmenistan and Tajikistan in the short run. Thus, energy diversification bolsters economic growth in developed and developing economies. Diversifying energy sources may yield positive long-term effects, but it is equally important to consider the short-term consequences. Research limitations/implications Diversifying energy sources may yield positive long-term effects, but it is equally important to consider the short-term consequences. Since a variety of energy sources can support environmentally friendly development, this paper presents significant policy implications, advocating for strategic investments in renewable and alternative energy sources such as biofuels to enhance sustainable development. Practical implications The findings demonstrate that with an increase in the long-term diversity of energy sources, developed nations like the GCC and developing nations like Kazakhstan, Kyrgyzstan and Uzbekistan from Central Asia and India, Bangladesh and Pakistan from South Asia experience favourable economic growth. However, energy diversification has an inverse relationship with economic growth in least-developed economies like Afghanistan, Sri Lanka, Turkmenistan and Tajikistan in the short run. Thus, energy diversification bolsters economic growth in developed and developing economies. Diversifying energy sources may yield positive long-term effects, but it is equally important to consider the short-term consequences. Since a variety of energy sources can support environmentally friendly development, this paper presents significant policy implications, advocating for strategic investments in renewable and alternative energy sources such as biofuels to enhance sustainable development. Social implications Since a variety of energy sources can support environmentally friendly development, this paper presents significant policy implications, advocating for strategic investments in renewable and alternative energy sources such as biofuels to enhance sustainable development. Originality/value This study represents the first attempt to examine the nexus between energy diversification and economic growth within the CAR, the GCC and the SAARC. It is critical to recognize that all these regions are significantly dependent on natural resources, specifically oil, gas and agricultural and textile products. These regions face challenges in diversifying their economies away from traditional sectors towards a more diversified economic base. Furthermore, these regions hold strategic importance on the global stage. The CAR and GCC are essential for global energy supplies, while SAARC comprises key geopolitical players in South Asia.