• Title/Summary/Keyword: Economic Growth Rate

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How Does Financial Development Impact Economic Growth in Pakistan?: New Evidence from Threshold Model

  • TARIQ, Rameez;KHAN, Muhammad Arshad;RAHMAN, Abdul
    • The Journal of Asian Finance, Economics and Business
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    • v.7 no.8
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    • pp.161-173
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    • 2020
  • This study examines the nonlinear relationship between financial development and economic growth in Pakistan using the threshold regression model for the period 1980-2017. We also employed quantile regression with 0.25, 0.50, and 0.75 quantiles of conditional distribution. The quantile regression is based on minimizing of sum of squared residuals. The result indicates that economic growth responds positively to financial development when the level of financial development surpasses the threshold value of 0.151. However, when financial development lies below the threshold value (that is, 0.151), its impact on economic growth is negative. Thus, when financial development of Pakistan surpasses the threshold level, it contributes more towards economic growth since greater level of financial development contributes more to boosts economic growth. This finding reveals that economic growth reacts differently to financial development, and the relationship between financial development and economic growth is U-shaped in Pakistan. Among the other variables, physical capital, labor force, and government expenditure exert a positive effect on economic growth. Furthermore, inflation rate and trade openness have an insignificant impact on economic growth. The results of quantile regression also confirm the non-linear relationship between financial development and economic growth in Pakistan. The finding of this study suggests revamping of financial sector policies in Pakistan.

Analysis on the Dynamic Characteristics of Migration and Regional Economic Growth between Regions (지역 간 인구이동과 지역경제성장의 동태적 특징에 관한 실증 분석)

  • Kim, Hyun-Woo;Lee, Du-Heon
    • The Journal of the Korea Contents Association
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    • v.21 no.12
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    • pp.310-321
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    • 2021
  • The influence of regional economic growth on migration may also differ by age and generation age due to individual lifestyle. Therefore, this study analyzes an effects of changes in regional economic growth on migration between regions by age group. The result shows that the increase in the growth rate of the regional economy and job creation increased the net migration rate, regardless of age group. Second, it is found that the growth rate of the regional economy and job creation have a greater effect on the net migration rate for the youth population than for the middle-aged group. Third, it is found that the gap between regions in the level of individual income in the 25 to 29 years old and the level of land price fluctuations in the 40 to 64 years old affect the net migration rate. This implies that regional economic growth is still an important factor in the migration between regions, and has a great influence on the youth population.

Macroeconomic Growth and Poverty in Korea : Analysis of Urban Households in 1982-2004 (우리나라에서의 경제성장과 빈곤의 관계 : 1982-2004년 도시가구를 중심으로)

  • Lee, Sang-Eun
    • Korean Journal of Social Welfare
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    • v.58 no.3
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    • pp.245-268
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    • 2006
  • The purpose of this study is to investigate the empirical relation between economic growth and poverty in Korea. Especially, the focus is put on exploring if there are any changes in the relation of economic growth and poverty. From 1982-2004 Korea Urban Household Survey, I constructed the annual data of poverty rate. I also obtained the annual data of the real GDP and the unemployment rate from the National Statistical Office. Using these annal data of the poverty rate and the macroeconomic performance, I analyzed the relation of them. As the result, I found that the macroeconomic growth have played very important role in reducing the poverty rate in Korea. Since 2000, the macroeconomic growth have still worked as an effective instrument for poverty reduction. However, there have been poverty increase that has not been explained by the macroeconomic growth since 2000. Based on these results, this paper suggests that the anti-poverty strategy in Korea should be changed from the old strategy emphasizing only economic growth to the new strategy pursuing both economic growth and social security simultaneously.

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Case Study on the Growth Factors of Young Technology Startups in the Cosmetics Industry: Focusing on the Six-month Challenge Platform project of Chungbuk Creation Economic Innovation Center (화장품산업 초기 기술창업기업의 성장요인에 관한 사례연구: 충북창조경제혁신센터 6개월챌린지플랫폼사업의 지원기업 중심으로)

  • Jeong, Do Youn;Om, Kiyong
    • Knowledge Management Research
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    • v.20 no.2
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    • pp.197-216
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    • 2019
  • The Korean government has been focusing on supporting technology startups to solve social and economic problems such as low growth, declining economic growth rate, rising youth unemployment rate and lack of new growth engine. Although the failure rate of young technology startups is very high, relevant researches are still scant. On the basis of previous researches, this study has identified four growth factors of technology startups: characteristics of entrepreneurs, technical superiority and originality of business items, focused marketing strategy, and follow-up government support projects. Five young technology startup cases were selected and analyzed in the cosmetics industry which were supported by the Six-month Challenge Platform project of Chungbuk Creation Economic Innovation Center. The main findings of the case study were as follows: First, product development through inhouse R&D rather than external contracted R&D was beneficial to acquiring follow-up government support projects and external investment. Second, choosing a small niche market and concentrating marketing efforts on the target market had a positive effect on firm performance. And, third, relevance of entrepreneurs' college major and technological originality of business items were confirmed to influence firm performance positively in the early stage. The results are expected to help young technology startups survive successfully and establish a foothold for growth in their early stage.

Financial Development and Economic Growth in Korea

  • HWANG, SUNJOO
    • KDI Journal of Economic Policy
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    • v.42 no.1
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    • pp.31-56
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    • 2020
  • Does financial development contribute to economic growth? The literature finds that an expansion in financial resources is useful for economic growth if the degree of financial development is under a certain threshold; otherwise, the expansion is detrimental to growth. Almost every published study, however, considers country-panel data. Accordingly, the results are not directly applicable to the Korean economy. By examining Korean time-series data, this paper finds that there is an inverse U-shaped relationship between the per capita real GDP growth rate and private credit (as a percentage of nominal GDP)-a well-known measure of quantitative financial development, where the threshold is 171.5%. This paper also finds that private credit is positively associated with economic growth if the share of household credit out of private credit is less than 46.9%; otherwise, private credit is negatively associated with economic growth. As of 2016, the ratio of private credit to GDP and the ratio of household credit to private credit are both higher than the corresponding thresholds, which implies that policymakers should place more emphasis on qualitative financial development than on a quantitative expansion of financial resources.

A Study on Relationship between Economic Growth and Pollution: Theoretical and Empirical Analysis (환경오염과 경제성장 간의 관계에 대한 모형구축 및 실증분석)

  • Kim, Ji Uk
    • Environmental and Resource Economics Review
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    • v.12 no.3
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    • pp.515-529
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    • 2003
  • This theoretical model makes three contributions to the study on economic growth and environment. First, emissions are generated during final goods production and technology accumulation. Second, this paper assumes that pollution is directly increasing with increase in final goods output or in consumption. Third, we use reproducible factors associated with labor and capital input in production function and assume constant return to scale in reproducible factors. From growth rate condition we derived, increases in reproducible factors, increases in productivity of either the abatment or technology sector, and decrease in social discount rate would increase the sustainable growth rate. In empirical test, the environmental degradation did not effect the economic growth rate though other factors satisfied the growth rate condition equation. However, through the reinterpretation of this result, we found indirectly the fact of that an inverted U relationship between air pollution and economic growth rate would exist in 20 OECD countries using a panel data for the period of 1986~1995.

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Analysis of the effect of imported technology on the economic growth of Korea (한국의 경제성장에 있어서 해외도입기술의 영향분석)

  • 최은철
    • Proceedings of the Technology Innovation Conference
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    • 2001.06a
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    • pp.145-156
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    • 2001
  • This paper investigates the effect of imported technology on the economic growth of Korea. To this end, the relationship between input technology and economic growth are suggested in the numerical form and analysed empirically. The rates of return of technology investments, which are divided into the domestic R&D investment and the investment on imported technology, are estimated. Based on the result of this analysis, the rate of return of the input technology, which includes the domestic R&D investment and the investment on imported technology, are estimated as 31.4%, and this input technology is calculated as to contribute 8.9% on the economic growth rate of Korea. And the domestic R&D investment is fumed out to have bigger rate of return than the investment on imported technology during the surveyed period. However, the rates of return of detailed R&D investments, which can be divided into the investments on commercial R&D and basic science, were not calculated in this paper, because of the lack of data on this in this paper. As well, the time-lag effect, which is naturally believed to exist between the R&D investment and the economic growth, could not be analysed wit:1 the same reason. Thus when analysing the relationship between them, this paper tried to minimize the time-lag effect by using the long-term data of twenty-three years.

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Revisiting the Nexus of Foreign Direct Investment, Financial Development, and Economic Growth: The Case of Emerging Economies

  • KUMAR, Jai;SOOMRO, Ahmed Nawaz;KUMARI, Joti
    • The Journal of Asian Finance, Economics and Business
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    • v.9 no.1
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    • pp.203-211
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    • 2022
  • Foreign direct investment (FDI) has increased at an exponential rate during the last two decades. It is now a feature of emerging market economies as well. Foreign direct investment and financial development are important factors in an economy's growth. Various studies have examined the impact of foreign direct investment and financial development on economic growth in different countries and areas. However, the findings are currently inconclusive. Using updated data from 1970 to 2020, this study will examine the relationships between FDI, financial development, and economic growth in 30 rising economies.GDP is the dependent variable, while FDI, financial development, trade openness, infrastructure, exchange rate, and GDP growth are the independent factors. To estimate the panel data, we used the most recent econometric models. The study's major findings suggest that FDI and financial development are critical determinants in emerging economies' economic progress. Furthermore, multiple robustness checks supported the study's empirical findings. The results of this study include various practical recommendations for investors, governments, and policymakers, given the increased interest in global economic integration and member states' reliance on FDI as a critical aspect of sustaining prosperity.

A Study on the Influence of Gender Gap on Economic Structural Improvement and Economic Growth (성별 격차가 경제구조 고도화 및 경제성장에 미치는 영향에 관한 연구)

  • Kim, Sangyoon;Seo, Jonggook
    • Journal of the Society of Disaster Information
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    • v.13 no.4
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    • pp.499-510
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    • 2017
  • Based on "The Global Gender Gap Report" by World Economic Forum, this study identified factors of gender gap and analyzed a relationship between income growth and economic structural improvement with 145 countries. Consequently, sex ratio has a positive relationship with GNI growth rate and ICT development index. Female illiteracy has a negative relationship with only GNI growth rate, and female seat of parliament has a positive relationship with only with only GNI growth rate. Female labor participation rate has a positive relationship with inly ICT development index. These results confirmed the importance of future female labor force. With these results, many countries will need to reconsider discrimination against women and establish strategy based on an institution and a policy to prepare the 4th industrial revolution.

Regional Industrial Diversity and Economic Growth and Employment Instability in Korea (지역의 산업구조 다양성이 지역경제에 미치는 영향분석)

  • 김강성;송영필
    • Journal of the Korean Regional Science Association
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    • v.15 no.1
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    • pp.23-43
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    • 1999
  • The strategy of regional industrial specialization is empirically evaluated by examining the relationship between regional industrial structures and economic performances. The regional industrial structure is measured by three industrial diversity indices such as ogive approach, entropy maximizing approach, and economic growth and employment instability in 12 regions is analyzed. According to the time series analysis, we found that the region with more diversified industrial structure experiences more stable in employment. Otherwise, the growth rate of the region with more simplified industrial structure is higher. Therefore, the strategy of industrial specialization is implemented in order to pursuit a rapid economic growth in the short run.

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