Tag Archives: GDP

Size and Growth of Public Investment in Nigeria: Implications for Real Sector Development (Published)

This paper offers empirical evidence linking public investment to real sector development in Nigeria during 1981-2017. It specifically employed autoregressive distributed lag (ARDL) model to analyze the impacts of public investment in economic, social and community services and gross public investment as a ratio of GDP on agricultural and manufacturing value added. . The short run result showed that public investment in economic, social and community services impact positively on agricultural value added in the short run. The positive impact of investment in social and community services economic services was greater than that of economic services by a margin of 0.027 percent. This suggests that investment in human capital formation such as education and healthcare delivery seems to provide greater opportunity for agricultural development. Additionally, public investment in economic services also exerts significant positive impact on manufacturing value added. The result further showed that gross capital expenditure as a ratio of GDP impact positively on agricultural and manufacturing value added in the short run. It was evidence from the result that its impact on agricultural value added was stronger in the long run. Accordingly, it is recommended that policy makers should step up investment in social and community services in order to improve human capital required for real sector development in Nigeria.

Keywords: Agricultural Value Added, GDP, Manufacturing Value Added, Public Investment, Real Sector

The Impact of Capital Market Growth on Nigerian Economy (Published)

This study examined the impact of capital market growth on Nigerian economy between 2000 and 2013. Data were collected from Security Exchange Commission reports, Nigerian Stock Exchange Review Reports, Central Bank of Nigeria Statistical Bulletin respectively and ordinary least square method of regression was used with aid of SPSS version 16 software packages to analyze the data. Gross Domestic Product (GDP) was used as measure for economic growth while the capital market development are represented with Market Capitalization (MCAP), Numbers of Deals, All-Share Index (ALSI) and Total Value of Transaction (TVT).The result of the study reveals a strong correlation between economic growth and the independent variables. This is clearly shown in the very high R, R2, and adjusted R2 of 0.951, 90.4% and 86.1% respectively. With the exception of All Share Index, Total Value of Transaction and Numbers of Deals do not have significant impact on economic growth of Nigeria within the period of study. On the whole, 90.4% variation in economic growth in Nigeria is explained by the model. The long run relationship showed that only market capitalization impact significantly on the GDP. In the same manner the short run error correction model still indicates that market capitalization impacts positively on the economy. The study therefore recommends the pursuit of policies that would improve the depth and breadth of the Nigerian capital market so as to engender a rapid development of the market that would result in the economic growth and development of the economy.

Keywords: All share index, GDP, MCAP, Value of Transaction Capital Market

The Impact of Foreign Direct Investment and Import, Export on the Economic Growth of Pakistan: An Empirical Study (Published)

Purpose: The aim of this paper is to analyze the impact of foreign direct investment (FDI), export (EXPO) and import (IMP) in the economic growth of Pakistan from 1990 to 2015. Design/methodology/approach: The link of foreign direct investment (FDI), export (EXPO) and import(IMP) with economic growth is measured through multiple regression model. Foreign direct investment (FDI), export (EXPO) and import (IMP) treated as regrassors and gross domestic product (GDP) treated as regressand in this model.Eviews software used to analyze the annual time series data from 1990 to 2015. Findings: According to the findings, there is a negative and insignificant association between foreign direct investment (FDI) and GDP while there is significant and positive relationship found of export (EXPO) and import (IMP) with GDP. Originality/value: The empirical findings of this research play a vital role for policy maker of Pakistan in formulation of FDI and trade policies.

Keywords: Export, Foreign Direct Investment, GDP, economic growth, import

Economic Growth beyond Structural Transformation in Tanzania: Small and Vulnerable Economy (Published)

War against three development archenemies (ignorance, poverty and disease) started in 1961. Enormous efforts have been underway in different phases with different objectives. Tanzania Development Vision (TDV-2025) came up with the goal of transforming the nation in to semi-industrial or middle income nation. This paper investigates economic growth beyond structure changes to analyse nexus between structure transformation and productive sector during growth process. The study found that despite of up-haphazard structure changes there is direct connection between structure changes and economic growth. Statistics shows that 1% change in the primary, secondary, high school, vocational/college and university create a change of 33.5%, 1.9%, 27.1%, 0.1% and 23.9% to the employment respectively. Similarly, 1% change in employment in agriculture, industry and service sector create change of 9.8%, 0.06% and 2.5% to the GDP respectively. Means, education is the determinant of changes in the employment while employment determines changes in the GDP

Keywords: GDP, Inclusive Growth, Structure Transformation, Tanzania

The Relationship between Life Expectancy and Health Spending (Published)

This article shows the relationship between health spending per capita and life expectancy in the OECD. Most countries are grouped around a 45 degree line with life expectancy duly rising with spending. Health care expenditures and life expectancy have both been   rising in many countries, including in the Netherlands. However, it is unclear to what extent increased health care spending caused   the increase in life expectancy. Establishing a causal link between   health care expenditures and mortality is difficult for several   reasons.

 

Keywords: GDP, OECD, Relationship, health spending, life expectancy

Empirical Review of Government Expenditure on Education and Economic Development in Nigeria (2000 – 2015) (Published)

The study empirically reviewed government expenditure on education and economic development in Nigeria from 2000–2015.  The specific objective is to examine the extent to which the Nigerian GDP affects the government expenditure on education, social and community services and the number of school enrolment within the period being reviewed.  Secondary data employed were from the EFA 2015 report and CBN bulletin published in 2016.  Multiple regression analysis and student t-test were the statistical tools applied, with the use of SPSS for both data analysis and to test the hypotheses formulated for the study at 5% level of significance. The result indicated that expenditure on education is significant and impacts on the economy.  While the result on SCS and ENRL showed a significant relationship with the GDP but little or no impact.  The conclusion is that, the anti-graft fight by the present government to encourage proper use of resource allocation has to be encouraged by all good citizens and lovers of education.  If the resources allocated are efficiently utilized to equip Government owned schools, education will be affordable by all and number of school drop-outs will reduce significantly.  

Keywords: Economic Development, Education, GDP, enrolment, social and community services.

Tax Buoyancy and Elasticity in Nigeria: The Case of Aggregate Tax (Published)

This study was motivated by the growing demand for government funds to meet up with their expenditures as well as diversification for different streams of income. Empirical evidence has shown that the buoyancy and elasticity of tax are two clear ways of measuring how tax revenue responds to changes in income. This study adopted secondary data sets, which were sourced from CBN statistical Bulletin, National Bureau of statistics (NBS) and Federal Inland Revenue Service (FIRS) of Nigeria. A standard multiple regression estimation procedure in the form of the vector error correction model (VECM) model was adopted. The result from the study showed that tax revenue is significantly buoyant and elastic in Nigeria. In view of the result the study recommended among others that, the government introduces policies that will help her take advantage of the potentials inherent in the country and increase its tax revenue thereby having another source of financing its budget other than the current crude oil proceeds.

Keywords: GDP, Nigeria, Tax Buoyancy, Tax Elasticity, Tax Revenue

Jordan’s Export Import Scenario During 2000- 2014 (Published)

In light of the challenges set by the economic openness and foreign trade to the Jordanian economy, especially through the increasing competition for Jordanian products of goods and services with regional and global countries, it is necessary to activating the role of the Jordanian trade policy in order to make greater contribution to enhancing the competitiveness of the national economy. The objective of this research paper is to address the impact of import and export of Jordon on Gross Domestic Product growth (GDP) during the period 2000-2014 as the GDP at market price determines the import, export and openness of Jordan. Linear Regression analysis has been applied with GDP at market price and Import, export, trade and trade openness. The analysis shows that there is a statistically significant impact of export and import of goods and services, and on GDP growth of the economy. On the other hand the analysis shows no significant effect of trade openness on GDP growth rate due to trade deficit.

Keywords: Export, GDP, Jordan, import, trade openness

Investigating the Performance of SME Sector in Bangladesh: An Evaluative Study (Published)

Small and Medium Enterprises (SMEs) are recognized worldwide as engines of economic growth. The commonly perceived merits often emphasized for their promotion especially in the developing countries like Bangladesh include their relatively high labor intensity, dependence on indigenous skills and technology, contributions to entrepreneurship development and innovativeness and growth of industrial linkages. The aim of this paper is to assess the performance and contribution of Small and Medium Enterprises (SMEs) in the development of Bangladesh. Descriptive statistical tools were used to assess the performance and productivity of SMEs. Study results revealed that SMEs have noteworthy contribution to GDP (gross domestic product), employment generation, poverty alleviation, women empowerment and small and cottage industry sector. It is also found that the performance of SMEs is not satisfactory enough of the country may be due to lack of sufficient financing, lack of skilled workers and political instability. The authors also tried to recommend some suggestions for overcoming the lacking.

Keywords: Bangladesh, GDP, Performance analysis, SME

Is Tourism a Gene Sector to Jordan’s Gdp? (Published)

Tourism in Jordan is a service industry with multiple outcomes. However, at present, it has not been fully utilized and developed to generate the expected income for Jordan’s GDP. Researchers have examined Jordan’s tourism and identified its economical outcomes and methods of enhancement. This study is intended to investigate the contribution of tourism on Jordan’s GDP. To approach the aim of the study, data used in the empirical analysis was collected from the Ministry of Tourism for the period 2006 -2014.Statistical techniques used were: means, variances, covariance, and standard deviations. Research results indicated positive and significant contribution of Jordanian Tourism Sectors on GDP.

Keywords: GDP, Income, Outcome, Service Industry, Tourism

PUBLIC INVESTMENT STATUS IN BANGLADESH (Published)

This paper endeavors to formally establish a link between public investment and economic growth. Public investment is one of the key factors of economic development. It is often seen as important ingredient for economic growth in developing countries like Bangladesh. The main purpose of the study is to investigate the impact of public investment on economic growth in Bangladesh. I also examine the public investment of Bangladesh. We consider ADP is the main proxy for public investment in Bangladesh. We also consider the gross capital formation for more reliable results. In our country, ADP traditionally holds the central place in our national economic planning. ADP regularly promotes economic growth, ensures infrastructural development, reduces poverty and improves the environment. The link among GDP, PI and GCF are analyzed by our regression model. From our study, we have seen that PI has positive effects on GDP in Bangladesh. So, in the light of that result, increases in public investment should have a positive net impact on economic growth which augments our economic development in future. This thesis concludes with a number of policy recommendations arising from the research findings.

Keywords: ADP, GCF, GDP, Public Investment, economic growth

ECONOMIC GROWTH BEYOND STRUCTURAL TRANSFORMATION IN TANZANIA- SMALL AND VULNERABLE ECONOMY (Published)

War against three development archenemies (ignorance, poverty and disease) started in 1961. Since then enormous efforts have been underway in different phases with different objectives. Recently, Tanzania Development Vision (TDV-2025) set the goal of transforming the nation in to semi-industrial or middle income nation. This paper investigates economic growth beyond structure changes to analyse nexus between structure transformation and productive sector during growth process. The study found that despite of up-haphazard structure changes there is direct connection between structure changes and economic growth. Statistics shows that 1% change in the primary, secondary, high school, vocational/college and university create a change of 33.5%, 1.9%, 27.1%, 0.1% and 23.9% to the employment respectively. Similarly, 1% change in employment in agriculture, industry and service sector create change of 9.8%, 0.06% and 2.5% to the GDP respectively. Therefore, education is the determinant of changes in the employment while employment determines changes in the GDP.

Keywords: GDP, Inclusive Growth, Structure Transformation, Tanzania

IMPACT OF THE NIGERIAN CAPITAL MARKET ON THE ECONOMY (Published)

There are elements upon which a nations’ economic development are dependent. The importance of Capital Market as one of the vehicles upon which most under-developed economies could grow cannot be overemphasized. The extent to which these economies experience the said growth is quite relative to the level of awareness and management of the market. Nigeria is not left out in the desire to maximize the gains of the capital market to boost its economy. This paper empirically examines the impact of the Nigerian Capital Market on the Nigerian economy looking at a 20 years period from 1992 to 2011. The Nigerian Capital Market was proxy as Market Capitalization against some variables of the economy such as Gross Domestic Product (GDP), Foreign Direct Investment, Inflation Rates, Total New Issues, Value of Transaction and Total Listing. Using the multiple regression analysis, we find that Capital Market has an insignificant impact on the Economy within the period under review. The study therefore advised that policies and measures that would boost investors’ confidence should be enshrined in the running of Nigerian Capital Market so that it could contribute significantly to the growth of Nigerian economy noting that all elements of the market are essential ingredients to the development of a nation.

Keywords: Capital market, Foreign Direct Investment, GDP, Inflation Rate, Total new issues, Value of Transaction, and Total listing

ROLE OF POLICIES IN ECONOMIC GROWTH: A CASE STUDY OF CHINA’S ECONOMIC GROWTH (Published)

It is historical fact the economic policies play key role in the growth and downfall of different empires whether it was Muslim empires in Spain and India or British Empire, which ruled almost the whole world in 17th and 18th centuries. The emergence of China’s economic growth is the phenomena of 21st century. The author has intended to investigate the Chinese policies in different sectors as the drivers of economic growth during the period 1980-2010.The main objective of this research is to investigate different policies introduced by the Chinese government during 1980-2010 to promote economic growth and to measure their effect at micro and macro level of Chinese economy.The author used secondary date collected from different sources such as IMF,World Bank, Barro and Lee, OECD database, US Bureau of Labour Statistics, US Bureau of Economic Analysis, and relevant Journals. Our findings and results are robust because the evidence proves that different policies implemented by Chinese government have brought substantial positive impact on national economy at micro and macro level.

Keywords: FDI, GDP, Gini Co-Efficient, Income Inequality, Poverty Alleviation

CARBON EMISSION AND ECONOMIC GROWTH OF SAARC COUNTRIES: A VECTOR AUTOREGRESSIVE (VAR) ANALYSIS (Published)

This paper examines the causal relationship between carbon ( ) emissions and economic growth in seven SAARC countries using time series data for the period from 1972-2012. We applied Vector Error Correction Modeling (VECM) approach. We have also applied Augmented Dickey-Fuller (ADF) and Phillips-Perron (P.P) test and Johansen’s cointegration approach to check time series properties and cointegration relationship of the variables. Results exhibit a cointegration relationship between environmental pollution and economic growth. Results also show that the estimated coefficients of emissions have positive and significant impacts on GDP in the long run. These results will help the environmental authorities to understand the effects of economic growth on environment for degradation and manage the environmental problems using macroeconomic methods.

Keywords: Causality, Emission, GDP, SAARC, VECM

Carbon Emission and Economic Growth of SAARC Countries: A Vector Autoregressive (VAR) Analysis (Review Completed - Accepted)

This paper examines the causal relationship between carbon ( ) emissions and economic growth in seven SAARC countries using time series data for the period from 1972-2012. We applied Vector Error Correction Modeling (VECM) approach. We have also applied Augmented Dickey-Fuller (ADF) and Phillips-Perron (P.P) test and Johansen’s cointegration approach to check time series properties and cointegration relationship of the variables. Results exhibit a cointegration relationship between environmental pollution and economic growth. Results also show that the estimated coefficients of emissions have positive and significant impacts on GDP in the long run. These results will help the environmental authorities to understand the effects of economic growth on environment for degradation and manage the environmental problems using macroeconomic methods.

Keywords: Causality, Emission, GDP, SAARC, VECM

TAX BUOYANCY AND ELASTICITY IN NIGERIA: THE CASE OF AGGREGATE TAX (Review Completed - Accepted)

This study was motivated by the growing demand for government funds to meet up with their expenditures. Empirical evidence has shown that the buoyancy and elasticity of tax are two clear ways of measuring how tax revenue responds to changes in income. This study adopted secondary data sets, which were sourced from CBN statistical Bulletin, National Bureau of statistics (NBS) and Federal Inland Revenue Service (FIRS) of Nigeria. A standard multiple regression estimation procedure in the form of the vector error correction model (VECM) model was adopted. The result from the study showed that tax revenue is significantly buoyant and elastic. In view of the result the study recommended among others that, the government introduces policies that will help her take advantage of the potentials inherent in the country and increase its tax revenue thereby having another source of financing its budget away from the current crude oil.

Keywords: GDP, Nigeria, Tax Buoyancy, Tax Elasticity, Tax Revenue

DOES INFLATION WEAKEN ECONOMIC GROWTH? EVIDENCE FROM NIGERIA (Published)

The study aims at evaluating the link between inflationary rate and economic growth in Nigeria. It also examines the nature and form of association between inflationary rate and exchange rate as well as interest rates from 1979 t0 2010.Ordinary least squares approach in the form of multiple regression was adopted in examining the relationship among the variables while the causalities were evaluated using Granger Causality model. It is pertinent to check whether the short run relationships would be sustained in the long run. To achieve this, Johansen and Juselius cointegration technique was adopted while the variables were adjusted for stationarity using the Augmented Dickey- Fuller (ADF) tests for unit root. It was found that inflationary rate is negatively related with real gross domestic product while exchange rates and interest rates are positively related with inflationary rate though not to a very significant extent. This is sustainable even in the long run and the implication is that when inflationary rate is rising, it affects the economy negatively as growth is dampened. On causality, at both lag 2 and lag 4, the study reveals that there is no causality between inflationary rate and real gross domestic product. However, at lag 2, there is a unidirectional causality running from inflationary rate to interest rate and also a unidirectional causality running from interest rate to real gross domestic product. At lag 4, there is a unidirectional causality running from interest rate to inflationary rate and from interest rate to exchange rate and also a unidirectional causality running from exchange rate to real gross domestic product. Consequently, efforts should be geared towards keeping inflationary rate at a single digit level to enhance the growth and development of Nigeria economy and to ensure that macroeconomic activities are kept alive

Keywords: Cointegration, Exchange Rate, GDP, Granger, Inflation Rate, Interest Rate

Job Dissatisfaction in the Bangladesh Ready-made Garment Sector: To what Extend HR/IR Practices can Grow Exhilaration of RMG Workers? (Published)

The Readymade Garments (RMG) industry of Bangladesh has been the key export industry and a main source of foreign exchange for the last 25 years. The sector rapidly became important in terms of employment, foreign exchange earnings and its contribution to the national economy. Currently the industry provides employment to about 3 million workers of whom 90% are women (EPB, 2007; BB Report, 2008). Notwithstanding the impressive success of the RMG sector, poor working conditions in the factories and the lack of Social compliance are serious concerns which have, since 2006, led to labour unrest and damage to institutions and properties. Indeed, working conditions in the RMG sector is substandard, and do not meet the Codes of Conducts (Qudus and Uddin, 1993). Recruitment policies are highly informal compared to western standards and there are no written formal contracts and appointment letters (Dasgupta S., 2002). Therefore they are vulnerable to losing their jobs at any time. Garments workers are embarrassed with long working hours or double consecutive shifts, personally unsafe work environment, poor working conditions, wage and gender discrimination (Kumar A., 2006). Long working hours without leave with breaks and compulsory overtime are common problems in this sector. Workers can be fired for refusing overtime. The level of wages is the most significant source of dissatisfaction for workers in the RMG industry. RMG owner often deny that they have the power to improve the wages or conditions of workers. Without full payment or being paid on time, worker often worry and are anxious about the future. This results in low work productivity and job dissatisfaction (Morshed, 2007). On the other hand, prospects of promotion in the RMG industry of Bangladesh are rare. The research suggests that there are many benefits from the introduction of modern HR and IR activities through the establishment of HRM or personnel management unit in the RMG sector. The government needs to pay much more attention to monitoring compliance. A modified Code of Conduct and an effective Compliance Monitoring Cell (CMC) are also required.

Keywords: BGMEA, Better Factories Cambodia, Code of Conduct, Compliance Monitoring Cell (CMC), GDP, Gross National Income, HR and IR, ILO, MFN, RMG, Social compliance, TATA, WTO

The Construction Industry and its Linkages to the Ghanaian Economy-Polices to Improve the Sector’s Performance (Published)

The study suggests that the construction sector plays a leading role in the improvement of socioeconomic conditions and the built environment in every country. The study revealed that the construction sector remains as one of the key sectors in the economy in terms of its share of GDP (i.e. 9.1% for 1993- 2011 period) and the overall industrial output( i.e. 35.9% for 1993-2011 period). Also, the paper estimated Construction Sector Index for Ghana for the first time and the index revealed that construction sector has improved significantly over the past two decades. Similarly, some empirical evidence from the econometric estimation using the Engel Granger Causality and Johansen Co-integration methodologies confirmed the evidence that the construction sector activity promoted economic growth in Ghana and the relationship remains positive. Finally, the paper concluded that, the construction sector when given the needed push in terms of capacity building, good policy initiatives and regulatory guidelines can provide the necessary impetus for socio-economic development in Ghana.

Keywords: Construction Index, Credit, GDP, Industry Output and Economy