• Title/Summary/Keyword: Economic growth model

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The Impact of Financial Integration on Economic Growth in Southeast Asia

  • Bong, Angkeara;Premaratne, Gamini
    • The Journal of Asian Finance, Economics and Business
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    • v.6 no.1
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    • pp.107-119
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    • 2019
  • This paper examines the impact of financial integration on economic growth in Southeast Asia over the period 1993-2013. This paper further investigates whether the relationship depends on the level of financial and economic development, government corruption, and macroeconomic policy. These questions raise important issues both from a theoretical and a policy perspective. We employ the generalized methods of moment (GMM) in the dynamic panel estimation framework to analyse several factors, including initial income, initial schooling, financial development, inflation, trade openness, corruption, and financial crisis. The study further analyzes the data using the EGLS model to examine the consistency of the GMM model. We found that financial integration has a significant positive effect on economic growth in Southeast Asia. Our findings suggest that increasing financial integration could improve the productive capacity of the economy, including more investments and efficient allocation of capital, and thus enhancing economic growth in this region. More specifically, the results suggest that the government should work towards eliminating corruption and stabilizing macroeconomics in order to enhance financial integration and economic growth. This paper sheds new insights on a better evaluation of the past and present theorizing on the subject of financial integration and economic growth; especially, in Southeast Asia.

Economic Growth and Animal Traction Development in Africa : An Empirical Analysis

  • Panin, A.
    • Proceedings of the Korean Society for Agricultural Machinery Conference
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    • 1996.06c
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    • pp.219-227
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    • 1996
  • Since the introduction of animal traction technologies(ATT) in many Sub Saharan Africa (SSA) countries, attempts to propagate its widespread use in the continent have suffered several setbacks. Many factors are responsible of this. However, developments in the African economies are believed to be a prominent factor. This study provides empirical evidence of the impact of economic growth on the performance of ATT-in Sub-Saharan Africa(SSa). The analysis uses 1971-1990 time-series data on ATT from botswana. The performance of ATT is measured on the basis of changes year covered under this study. The models used, are a regression model and a trend projection model. Although the regression model is representing a simplified view of the relationship between ATT and economic growth , it takes account of the influence of annual amounts of rainfall. It is concluded that economic growth has had a negative impact on the performance of ATT in Botwana. As the country's Gross Domestic Pro uct (GDP) steadily increased over the period of the analysis, the number of households using ATT declined at a rate of 2.5% per year. The impact of the GDP on ATT was directly associated with increases in the use of tractor, food imports and beef exports. The results have serious policy implications for agricultural development in many African countries that are not capable of sustaining their economic growth.

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The Asymmetric Impacts of Human Capital Accumulation through Trade on Economic Growth in the Manufacturing Sector of Korea (한국 제조업의 무역을 통한 인적자본축적이 경제성장에 미친 비대칭적 영향 분석)

  • Choi, Bong-Ho
    • Korea Trade Review
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    • v.44 no.1
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    • pp.1-15
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    • 2019
  • This study aims to analyze the effects of trade on human capital accumulation and economic growth in Korean manufacturing industry. The results of empirical analysis by dynamic panel model are as follows. The increase in exports of skilled labor intensive industries has a positive effect on human capital and economic growth, and the impact of import on human capital accumulation and economic growth has alst a positive impact. The exports of unskilled intensive labor industries have a negative impact on human capital accumulation and economic growth. Imports of unskilled labor intensive industries have negative on human capital accumulation and economic growth. It is difficult to derive statistically significant results for the effects of trade on human capital accumulation and economic growth before and after 2008. However, as a result of the financial crisis in 2008, it seems that the effects have decreased since 2008.

Financial Accessibility and Economic Growth

  • Boldbaatar, Myagmarsuren;Lee, Choong Lyol
    • East Asian Economic Review
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    • v.19 no.2
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    • pp.143-166
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    • 2015
  • This paper investigates the empirical evidence on the relationship between financial accessibility and economic growth to test the conventional hypothesis that improved financial accessibility leads to financial development and economic growth. First, we built a dynamic panel model on the relationship between financial accessibility and economic growth with a set of controlled variables. We then used several financial access indicators from 165 countries, collected from 2004 to 2011, applying the generalized method of moments (GMM) estimators to estimate their relationship. From these estimations, we found that high financial accessibility leads to high income in general. In addition, we found that an increase in financial access indicators had a greater impact on economic growth in low-income countries than it did on economic growth in high-income countries.

The Nexus between Urbanization, Gross Capital Formation and Economic Growth: A Study of Saudi Arabia

  • KHAN, Uzma
    • The Journal of Asian Finance, Economics and Business
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    • v.7 no.12
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    • pp.677-682
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    • 2020
  • To investigate the nexus between urban population, gross capital formation, and economic growth in the Kingdom of Saudi Arabia, yearly data was collected from the World Bank for the period 1974- 2018. Basic statistics test and correlation matrix was used to investigate the causal effect among the tested parameters, followed by Augmented Dickey-Fuller (ADF) stationary test, co-integration analysis by Johansen test after that Vector Auto-Correction Model for both short-run and long-run and finally the Granger-Causality tests. Result of unit root test analysis shows that the urban population became stationary at I (0) level while economic growth and gross capital formation became stationary at I (1). Johansen co-integration analysis indicates that there is presence of both long-run and short-run relationship between the three variables in the Kingdom of Saudi Arabia. The result of the VECM Model reflects that both economic growth and gross capital formation have a negative impact on urban population in the short run. According to the Granger-Causality tests, there is unidirectional causality with the urban population by both gross capital formation and economic growth. Also, the result of the Granger Causality tests show that there is unidirectional causality between economic growth and gross capital formations.

Causality Analysis of Oil Consumption, Oil-spills, and Economic Growth in Korea (한국의 석유소비, 해양유류유출사고, 경제성장의 인과관계 분석)

  • Jin, Se-Jun;Park, Se-Hun;Yoo, Seung-Hoon
    • Ocean and Polar Research
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    • v.40 no.4
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    • pp.271-280
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    • 2018
  • The purpose of this study is to examine the causal relationship among oil consumption, oil-tanker accidents, and economic growth, and to derive policy implications from the results. Therefore, this paper attempts to analyze the short term, long term, and strong causality factors pertaining to the relationship between oil consumption, oil-tanker accidents, and economic growth in Korea using time-series techniques and annual data for the 1984-2016 period. Tests for unit roots, co-integration, and Granger-causality based on an error-correction model are presented. The results show that bidirectional causality exists between oil consumption and oil-tanker accidents, between economic growth and oil consumption, and between oil-tanker accidents and economic growth. The study shows that oil was used as a core energy source during the rapid economic growth of Korea in the past, and that this caused the number of oil-tanker accidents to rise as oil consumption increased.

Is Carbon Neutral Policy Compatible with Sustainable Economic Growth? (탄소중립은 지속가능한 경제성장과 양립하는가?)

  • Park, Hojeong
    • Environmental and Resource Economics Review
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    • v.30 no.2
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    • pp.347-364
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    • 2021
  • Carbon neutral policy in Korea pays limited attention to the concept of sustainable economic growth. This limitation can be compared with other countries' carbon neutral policies such as US, UK and China where the climate change policies are closely connected to economic policies to boost further economic growth. This paper adopts a Ramsey growth model to account for the impact of carbon neutral policy on long-term economic growth and the accumulation capital. The model incorporates the Hartwick rule to allow sustainability of economic growth by transforming resource input into other input factor for growth. The analysis provides a possibility of low accumulation of capital as a result of carbon neutral policy in the absence of effective transformation of fossil-fuel factor into growth-related productive capital. Such low capital stock can be more aggravated when there exists a rent-seeking behavior of various interest groups with voracity to exploit social capital.

A Study on the Nonlinear Relationship between CO2 Emissions and Economic Growth : Empirical Evidence with the STAR Model (비선형 STAR 모형을 이용한 이산화탄소 배출량과 경제성장 간의 관계 분석)

  • Kim, Seiwan;Lee, Kihoon
    • Environmental and Resource Economics Review
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    • v.17 no.1
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    • pp.3-22
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    • 2008
  • We study nonlinearities of $CO_2$ emissions and economic growth m Korea using the Smooth Transition Autoregressive (or STAR) model. We find evidence for nonlinearities and cyclical regime changes of both time series. In the extended nonlinear empirical work, we characterize dynamic properties of the two time series and then find mutually significant Granger causality between $CO_2$ emissions and economic growth. All these empirical evidences together reinforce long standing concern that economy-wide restrictions on $CO_2$ emissions would hurt economic growth for Korean styled medium industrialized countries.

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Specialization, Firm Dynamics and Economic Growth

  • Cho, Jaehan;Ge, Zhizhuang
    • East Asian Economic Review
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    • v.23 no.2
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    • pp.169-202
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    • 2019
  • Productivity in agriculture or services has long been understood as playing an important role in the growth of manufacturing. In this paper we present a general equilibrium model in which manufacturing growth is stimulated by non-manufacturing sectors that provides goods used in both research and final consumption. The model permits the evaluation of two policy options for stimulating manufacturing growth: (1) a country imports more non-manufacturing goods from a foreign country with higher productivity and (2) a country increases productivity of domestic non-manufacturing. We find that both policies improve welfare of the economy, but depending on the policy the manufacturing sector responses differently. Specifically, employment and value-added in manufacturing increase with policy (1), but contract with policy (2). Therefore, specialization of the import non-manufactured goods helps explain why some Asian economies experience rapid growth in the manufacturing sector without progress in other sectors.

The relation between occupational accidents and economic growth: Evidence from Korea

  • Lee, Jaehee;Choi, Clara Jungwon;Lim, Jin-Seok;Park, Jinbaek
    • International Journal of Advanced Culture Technology
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    • v.10 no.3
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    • pp.25-32
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    • 2022
  • This study analyzes the impact of occupational accidents on economic growth and labor productivty losses in Korea between January 2008 and July 2018, using the Vector Error-Correction Model (VECM). According to the analysis, the occurrence of occupational accidents was revealed to reduce the number of employed workers and also hinder economic growth. This can be reinterpreted as the reduction of occupational accidents does not cause labor losses in the industry, rather may induce economic growth. Also, the findings discovered that an increase in the number of workers may lead to increase in the probability of occupational accidents in the short term. This suggests that greater number of work-related accidents may occur during the early stages- due to new employees' lack of knowledge related to safety at workplace.