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Book part
Publication date: 26 November 2019

Dipyaman Pal, Chandrima Chakraborty and Arpita Ghose

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…

Abstract

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.

Details

The Gains and Pains of Financial Integration and Trade Liberalization
Type: Book
ISBN: 978-1-83867-004-7

Keywords

Book part
Publication date: 15 August 2007

Ritab S. Al-Khouri

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…

Abstract

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.

Details

Issues in Corporate Governance and Finance
Type: Book
ISBN: 978-1-84950-461-4

Open Access
Article
Publication date: 22 December 2020

Taiyan Huang

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…

2439

Abstract

Purpose

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.

Design/methodology/approach

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.

Findings

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.

Originality/value

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.

Details

China Political Economy, vol. 3 no. 2
Type: Research Article
ISSN: 2516-1652

Keywords

Article
Publication date: 31 August 2012

William R. DiPeitro and Emmanuel Anoruo

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.

3706

Abstract

Purpose

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.

Design/methodology/approach

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

Findings

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

Practical implications

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.

Originality/value

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.

Details

Journal of Economic Studies, vol. 39 no. 4
Type: Research Article
ISSN: 0144-3585

Keywords

Article
Publication date: 28 October 2013

Abdullah Alam

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…

2246

Abstract

Purpose

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.

Design/methodology/approach

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

Findings

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.

Practical implications

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.

Originality/value

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.

Details

Journal of Economic Studies, vol. 40 no. 6
Type: Research Article
ISSN: 0144-3585

Keywords

Open Access
Article
Publication date: 30 January 2004

Jaehwa Lee

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…

Abstract

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.

Details

Journal of International Logistics and Trade, vol. 1 no. 2
Type: Research Article
ISSN: 1738-2122

Keywords

Article
Publication date: 1 March 2002

Fouad K. AINajjar

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…

Abstract

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.

Details

Review of Accounting and Finance, vol. 1 no. 3
Type: Research Article
ISSN: 1475-7702

Article
Publication date: 18 May 2010

Stanislav Ivanov and Craig Webster

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

1419

Abstract

Purpose

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

Design/methodology/approach

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.

Findings

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.

Research limitations/implications

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.

Practical implications

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

Originality/value

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.

Details

Journal of Economic Studies, vol. 37 no. 2
Type: Research Article
ISSN: 0144-3585

Keywords

Open Access
Article
Publication date: 13 March 2024

Keanu Telles

The paper provides a detailed historical account of Douglass C. North's early intellectual contributions and analytical developments in pursuing a Grand Theory for why some…

Abstract

Purpose

The paper provides a detailed historical account of Douglass C. North's early intellectual contributions and analytical developments in pursuing a Grand Theory for why some countries are rich and others poor.

Design/methodology/approach

The author approaches the discussion using a theoretical and historical reconstruction based on published and unpublished materials.

Findings

The systematic, continuous and profound attempt to answer the Smithian social coordination problem shaped North's journey from being a young serious Marxist to becoming one of the founders of New Institutional Economics. In the process, he was converted in the early 1950s into a rigid neoclassical economist, being one of the leaders in promoting New Economic History. The success of the cliometric revolution exposed the frailties of the movement itself, namely, the limitations of neoclassical economic theory to explain economic growth and social change. Incorporating transaction costs, the institutional framework in which property rights and contracts are measured, defined and enforced assumes a prominent role in explaining economic performance.

Originality/value

In the early 1970s, North adopted a naive theory of institutions and property rights still grounded in neoclassical assumptions. Institutional and organizational analysis is modeled as a social maximizing efficient equilibrium outcome. However, the increasing tension between the neoclassical theoretical apparatus and its failure to account for contrasting political and institutional structures, diverging economic paths and social change propelled the modification of its assumptions and progressive conceptual innovation. In the later 1970s and early 1980s, North abandoned the efficiency view and gradually became more critical of the objective rationality postulate. In this intellectual movement, North's avant-garde research program contributed significantly to the creation of New Institutional Economics.

Details

EconomiA, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1517-7580

Keywords

Article
Publication date: 4 March 2024

Lukman Raimi, Nurudeen Babatunde Bamiro and Hazwan Haini

The relationships among institutions, entrepreneurship, and economic growth are hotly contested topics. The objective of this present study is to conduct a systematic literature…

Abstract

Purpose

The relationships among institutions, entrepreneurship, and economic growth are hotly contested topics. The objective of this present study is to conduct a systematic literature review aimed at comprehensively assessing the relationships between institutional pillars, entrepreneurship and economic growth.

Design/methodology/approach

Specifically, a comprehensive analysis of 141 empirical publications was carried out using the PRISMA protocol. The reviewed publications were taken from the Web of Science, Scopus and Google Scholar databases. Thirty-three articles that met the eligibility criteria of quality, relevance and timeliness of the publications were included in the the study.

Findings

Three key lessons emerged from the review. First, it was discovered that entrepreneurship and economic growth are influenced by three institutional pillars at various levels, including the regulatory, cognitive and normative pillars. Second, according to the type of institutional quality, the institutional pillars in a causal framework have a good or negative impact on entrepreneurship. Third, novel enterprise creation, self-employment, citizen employment, poverty alleviation, radical innovation, formalization of the informal sector, promotion of competition in existing and new markets, Gross Domestic Product (GDP) growth and the emergence of new business models that significantly improve quality of life.

Originality/value

The study proposes a conceptual framework for further exploring this important relationship based on solid empirical evidence. By providing a theoretically grounded framework, the paper fills the gaps in the literature and helps to clarify the relationship between institutional foundations, entrepreneurship and economic progress.

Details

Journal of Entrepreneurship and Public Policy, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2045-2101

Keywords

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