Are The Kaldor's Laws Valid? Panel Data Analysis under Cross Section Dependency for NIC Countries.

Mercan, Mehmet; Kızılkaya, Oktay; ÖKDE, Burak

doi:10.1016/s2212-5671(15)00399-8

Cited by 9 publications

(4 citation statements)

References 13 publications

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“…The result supports Kaldor's hypothesis and indicate that pre-mature deindustrialisation in African countries may hinder economic growth. The results confirm those of studies by Libanio and Moro (2006), Mercan et. al.…”

Section: Resultssupporting

confidence: 92%

“…By analysing existing literature, Szirmai (2012) corroborates the results of Szirmai and Verspagen (2010) by arguing that manufacturing has been vital for economic growth for developing countries over the years, however, the services sector has contributed more recently to this, particularly in developed countries. Mercan, Kizilkaya and Okde (2015) found that manufacturing output enhances economic growth in Newly Industrialised Countries. Su and Yao (2016) conclude that manufacturing growth enhances incentives for savings and technological accumulation which are crucial for economic growth in middle income countries.…”

Section: Empirical Literaturementioning

confidence: 99%

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Manufacturing Sector and Economic Growth: A Panel Study of Selected African Countries

Moyo

Jeke

2019

J. Bus. Econ. Review

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Objective – The manufacturing sector plays an important role in any economy. However, Africa has experienced significant deindustrialisation over the last few decades, whilst economic growth has been on an upward trend over the same period. The high growth rates have mostly been propelled by improved macroeconomic stability and the commodity price boom. Further, the slowdown in commodity prices has recently caused a deceleration of economic growth which begs the question: Does promoting the manufacturing sector result in higher and sustainable economic growth and reduce unemployment? This study assesses the impact of the manufacturing sector on economic growth in 37 African countries. Methodology/Technique – This study employs the System-GMM Model for the period between 1990 and 2017. This technique is ideal as the number of cross-sectional units is greater than the number of time periods. This technique also caters for problems of endogeneity and heteroscedasticity. Findings – The results show that manufacturing value has a positive effect on economic growth in African countries. Therefore, it is recommended that policy makers enact measures to boost manufacturing output. Novelty –The deceleration of economic growth in African countries coupled with high unemployment and poverty levels has brought the issue of re-industrialisation into the spotlight. This study is vital for policy makers in African countries who seek to promote economic growth and employment levels. The study contributes to literature in African countries by incorporating variables such as human capital and institutional quality which are major determinants of economic growth. Type of Paper: Empirical. Keywords: Manufacturing Value Added; Economic Growth; African Countries; System-GMM. Reference to this paper should be made as follows: Moyo, C; Jeke, L. 2019. Manufacturing Sector and Economic Growth: A Panel Study of Selected African Countries, J. Bus. Econ. Review 4(3) 114 – 130 https://doi.org/10.35609/jber.2019.4.3(1) JEL Classification: C23, E23, O14, O40.

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Section: Resultssupporting

confidence: 92%

Section: Empirical Literaturementioning

confidence: 99%

Manufacturing Sector and Economic Growth: A Panel Study of Selected African Countries

Moyo

Jeke

2019

J. Bus. Econ. Review

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“…Author details 1 University of Dodoma, Dodoma, Tanzania. 2 Department of Economics and Statistics, The University of Dodoma, Dodoma, Tanzania.…”

Section: Abbreviationsmentioning

confidence: 99%

“…Over the past three decades, policymakers, economists and development researchers have championed structural economic transformation as a key channel to accelerate economic growth and reduce poverty in Africa. The focus has been on promoting structural change and productivity growth, and industrialization is seen as a key driver of structural change [1][2][3][4]. Fox [5] defines transformation as "the movement of resources (factors of production) toward high-productivity activities, both within and between sectors, and is associated with more production in enterprises and less production in households (i.e., more wage employment and less self-employment)".…”

Section: Introductionmentioning

confidence: 99%

Effects of industrialization on Tanzania’s economic growth: a case of manufacturing sector

2022

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This article examines the impact of industrialization on economic growth in Tanzania focusing on the drivers of structural changes in the manufacturing sector. We apply the vector error correction model based on a parsimonious model covering the period from 1970 to 2017. Our results demonstrate the existence of a positive relationship between the manufacturing sector through its value added and economic growth in Tanzania. We have also observed a similar pattern of relationship in other sectors of the economy such as construction, agriculture, and services. Furthermore, the interaction model shows that foreign direct investment inflows and net domestic credit are the drivers of manufacturing growth. However, the real exchange rate coefficient is negative and significant, suggesting that it has had a negative impact on manufacturing output. The results are consistent with postulations of economic models found in economic growth theories. The article also presents some policy implications regarding the need for consistent policy implementation in the manufacturing sector and further improvement of the investment climate.

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Manufacturing and Economic Growth in Selected MENA Countries: A Kaldorian Approach

Mousa,

Nassereddine

2024

Int Adv Econ Res

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Are The Kaldor's Laws Valid? Panel Data Analysis under Cross Section Dependency for NIC Countries.

Cited by 9 publications

References 13 publications

Manufacturing Sector and Economic Growth: A Panel Study of Selected African Countries

Manufacturing Sector and Economic Growth: A Panel Study of Selected African Countries

Effects of industrialization on Tanzania’s economic growth: a case of manufacturing sector

Manufacturing and Economic Growth in Selected MENA Countries: A Kaldorian Approach

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