Search results

The present study aims to determine the existence of simultaneous relationship between economic growth, income inequality, fiscal policy, and total trade of the 13 emerging market economies as a group for the period 1980–2010. After establishing the existence of simultaneity between the above relationships, a simultaneous panel model has been formulated and estimated incorporating the nonlinearity among the variables as suggested by the existing literature. An inverted U-shape relationship is evident between (1) economic growth, income inequality, and total trade in economic growth equation, (2) income inequality, economic growth, and per capita income in income inequality equation, and (3) total trade and economic growth in total trade equation. Thus, the existence of a two-way nonlinear relationship is highlighted between economic growth, income inequality, and total trade. Apart from these nonlinear relationships, positive and significant effect of (1) gross capital formation, inflation, population growth, human capital, fiscal policy, monetary policy, and domestic credit to private sector on economic growth; (2) civil liabilities on income inequality; (3) gross capital formation and inflation on total trade; (4) total trade, population growth of those aged 65 years and above, political system on fiscal policy is highlighted. Also, negative and significant effect of (1) fiscal policy on income inequality and (2) income inequality on fiscal policy is revealed.

Education had proven to be one of the main determinants of economic growth, and it is a reason of the variations in economic growth levels between developed and developing countries. One of the main dimensions in studding the relationship between economic growth and education is the gender dimension or the importance of gender equality or female education in achieving economic growth. This chapter aims to test the hypothesis of the existence of a positive relationship between female education and economic growth in Egypt since 1990.

To address this question, Auto Regression Distributed Lag (ARDL) Bound test approach is conducted to analyze the co-integration between female education and economic growth using Egyptian Data for the period 1990–2022. The Empirical analysis for Egypt suggests the existence of positive significant relationship both in the short run and long run and that the impact of female education on economic growth is larger than the impact of education in general on growth. This could be explained by the existence of gender gap in Egypt, labor market, and thus, more educated girls able to enter the labor market will affect the economic growth more than the education of both sexes, in other words, there is still a room for improvement in the female labor market opportunities than for both sexes. The chapter also confirms the existence of a direct link between education in general and economic growth and thus confirms the hypothesis of the positive impact of education economic growth.

This paper presents new evidence of the relationship between financial market development (banking sector) and economic growth for a set of seven Middle East and North African economies over the period 1965–2002. We find evidence that in six of the seven countries, banking-sector development Granger causes increases in economic growth. However, in three of those six countries, economic growth also Granger causes banking development. Our co-integration analysis reveals that there is a stable long-run equilibrium relationship between banking-sector development and economic growth for all our countries. However, based on vector error-correction models, there is limited evidence that banking-sector development boosts economic growth in the short run.

The purpose of this paper is based on China’s economic fundamentals. Factor input, structural optimization and institutional reform, which determine the fundamentals of China's economic development, will actively prop up long-term, sustained and stable growth of the Chinese economy and keep China's potential economic growth rate stabilized within a reasonable growth range in the long term.

The fundamentals of economic development of a country are the basic situation of economic operation determined by the country's main factors and the long-term trend thereof, and they have such characteristics as stability, internality and persistence.

Stability refers to economic operation that remains relatively stable within a reasonable growth range at a certain stage of development, and this does not rule out exceptional economic fluctuations in certain years due to the impact of unexpected short-term factors. For instance, the fundamentals of the Chinese economy during the period after the reform and opening-up are characterized by a sustained high growth rate.

Internality refers to the intrinsic quantity and quality of all factors supporting the economic development of a country, especially the quantity and quality of the factors that play a decisive role in the economic development of a country at a specific stage. For instance, demographic dividend and capital formation have bolstered the high-speed growth of the Chinese economy since the reform and opening-up.

The purpose of this paper is to examine the impact of the size of government and public debt on real economic growth, for a panel of 175 countries around the world.

The paper utilizes the fixed‐effects and random‐effects techniques to estimate the panel regressions.

The results indicate that both the size of government and the extent of government indebtedness have negative effects on economic growth.

The findings suggest that the authorities ought to take the necessary steps to curtail excessive government spending and public debts, in order to promote economic growth.

The contribution of the paper is its application of the fixed‐ and random‐effects techniques in modeling the relation of real economic growth to the size of government and public debt, for a panel of 175 countries around the world.

The paper aims to study the relationship between economic growth, nuclear energy consumption and carbon dioxide (CO₂) emissions for a panel of 25 countries over a period of 1993-2010. Through this study, the author has provided an insight into one of the available sources of energy, i.e. nuclear energy and its impact on economic growth and CO₂ emissions.

Separate panels are created for developing and developed economies. Short- and long-run causalities between the variables are established using error correction mechanism.

For the developed countries, short-run causality running from CO₂ emissions to economic growth was estimated, whereas strong form of causality indicated the dependence of CO₂ emissions on economic growth and nuclear energy consumption was seen to impact CO₂ emissions. For the developing countries, both the short-run and strong-form causality estimates indicate that economic growth causes CO₂ emissions.

On policy front, developing countries can safely adopt CO₂ cut-back policies as they are not found to impact economic growth. For the developed countries, such policies may impede growth in the short run, but in the long run these policies do not affect the economic growth.

Keeping in mind the significance of nuclear energy consumption in economic growth and less/no GHG emissions generated by nuclear energy, this study validates its significance. This study, to the best of the author's knowledge, considers the largest panel (i.e. 25 countries) to date and the only study that focuses on studying three different panels (complete dataset, developed countries, developing countries) in one study and applies the vector error correction mechanism to study the causal relationship between nuclear energy consumption, CO₂ emissions and economic growth.

This paper considers a broader concept of economic integration in order to analyze the impact of integration on economic growth within the context of the knowledge-driven endogenous economic growth model. The equilibrium growth rate derived from the model implies that while increasing the flow of ideas from integration speeds up the long-run rate of growth, impact of trade liberalization is complicated and not decisive. The overall impact of economic integration on • economic growth depends on various aspects of the economy which are related to its R&D investment such as knowledge spillovers, and industrial and market structures. The results of this paper suggest that policy makers need to consider international economic policy, market structure and industrial policy all at once, with special emphasis on the effect affirms' R&D activities when making decisions on economic integration.

This study examines the cross‐sectional relationship between economic growth and variables suggested by the economic literature as affecting economic growth. The results show that economic freedom, in addition to known macroeconomic variables, is significantly related to economic growth.

The aim of this paper is to present a methodology for the decomposition of economic growth by industry which allows interindustry comparisons.

The paper uses the growth decomposition methodology developed by Ivanov and Ivanov and Webster for tourism and generalizes it for all industries in the national economy.

The methodology is exemplified with analysis of the contribution of specific industries to economic growth in Bulgaria for the period 2000‐2005. However, the model presents an approach that is general and can be applied to other countries and industries.

The methodology identifies the direct impacts of specific industries on the per capita growth of real gross domestic product/gross value added. Future research might integrate indirect and induced effects in the analysis. The methodology could be further refined by decomposing the gross domestic product/gross value added to their constituent elements.

The paper identifies the industries in the Bulgarian economy that generate economic growth.

The paper introduces a new methodology for measuring the contribution of specific industries to economic growth. It might be of value to both academics and macroeconomic policy makers.

This study aims to empirically assess how infrastructure development influenced economic growth in Zambia from 2000 to 2020.

The study uses data from the World Development Indicators (WDI), spanning from 2000 to 2020. The selection of this time period was determined by the availability of data related to the research. The Autoregressive Distributed Lag (ARDL) bounds testing approach was used for data analysis.

The findings show that economic growth is cointegrated with capacity to generate electricity, proving the existence of a long-run equilibrium relationship between them. Furthermore, the empirical results established that electricity generation capacity had a positive and significant impact on economic growth. Similarly, in the short run, electricity generation capacity, and mobile cellular services had a positive impact on economic growth.

Policy measures should prioritise increasing capacity for producing electricity and expanding access to energy by relevant economic sectors. Increased access to energy by these sectors can raise productivity, spur economic growth and accelerate industrialisation. Also, in the light of climate change, it is crucial that policymakers explore alternate sources of electricity generation, such as green and renewable sources. Furthermore, policy initiatives should prioritise expanding mobile cellular infrastructure, given that mobile cellular technology has become a vital component of economies and continues to offer unprecedented opportunities for economic growth.

This study presents novel empirical evidence on the unique relationship between infrastructure and economic growth in Zambia, highlighting electricity generation and mobile cellular services as pivotal factors for enhancing productivity and spurring industrial development.