Economic Liberalization and Economic Growth: An Empirical Analysis of Pakistan

Onah

African Development Review

et al. 2022

Studies that explore the relationship between financial innovation and the stability of money demand in Africa use the indirect measure of financial innovation. Previous studies on Nigeria also ignored total monetary aggregates (M3), despite its importance to monetary policy formulation and liquidity management. This paper contributes to the existing literature in two ways; first, we expand the generic money demand function to include the direct measure of financial innovation. Second, we test the model on Nigeria using a broader definition of money demand-narrow money (M1), broad money (M2) and total monetary aggregates (M3). We employ the Pesaran et al. (2001) autoregressive distributed lag (ARDL) bounds test approach to cointegration in estimating the respective equations and find evidence of a long-run relationship between money demand and financial innovation. The CUSUM and CUSUM-of-Squares tests reveal stable money demand across the three measures of money demand, which indicates that the inclusion of financial innovation has not altered the long-run stability of money demand in Nigeria.

Section: Resultssupporting

confidence: 89%

Financial innovation and the stability of money demand in Nigeria

Onah

African Development Review

et al. 2022

“…Hence, exports play a vital role in promoting economic growth in the country. This result is similar to the results obtained by Tyler (1981), Balassa (1985), Krueger (1990), Singupta and Espana (1994), Shirazi and Abdul-Manap (2004), Alhajhoj (2007), Hye andBel Haj Boubaker (2011), andSaad (2012).…”

Section: Johansen Cointegration Test Resultssupporting

confidence: 92%

“…Moreover, many empirical studies, including Tyler (1981), Balassa (1985), Ram (1987), Krueger (1990), Khan and Saqib (1993), Sengupta and Espana (1994), AlYousif (1997), Shirazi and Abdul-Manap (2004), Abou-Stait (2005), Alhajhoj (2007), Hye andBoubaker (2011), Saad (2012), Malhotra and Kumari (2016) have tested the role of exports in economic growth and found that there was a positive relationship between exports and economic growth. Besides, trade liberalization has also been found to have a positive effect on economic growth, according to Heitger (1987), Edwards (1992), Harrison (1996), Greenaway (1998), Onafowora and Owoye (1998), Greenaway et al (2001), Utkulu and Ozdemir (2004), Buehler et al (2011), andMercan et al (2013).…”

Section: Previous Studiesmentioning

confidence: 99%

Determinants of Economic Growth in Syria between 1980 and 2010

Mohsen¹,

Chua

Sab

2017

EJBE

“…According to the study, higher human capital levels, a stable macroeconomic environment, and good institutions can reduce the negative and insignificant effects of international financial integration. Similarly, Hye and Wizarat (2013) used the ARDL method to show that financial integration has no significant long-term influence on Pakistani economic growth. For both models, only trade openness is found to be a significant variable for economic growth in the short run.…”

Section: Empirical Results and Analysismentioning

confidence: 99%

Financial Integration and Economic Performance: Comparative Evidence from SADC and ECOWAS Regions

Onah

2022

The American Economist

This paper examined the impact of financial integration on economic growth in Southern African Development Community (SADC) and Economic Community of West African States (ECOWAS) countries over the period 1993–2013. Using the Panel ARDL PMG Model developed by Pesaran and Shin, other control variables (trade openness, inflation, government expenditure, and institutional quality) were captured in the model. It was found that there is a significant and positive impact of financial integration on economic growth in the ECOWAS region in the long run. Whereas, even after controlling for necessary variables, financial integration exacerbates negative and insignificant effects in determining economic growth in the SADC region, both in the short run and long run. The insignificant and negative impact of financial integration on the region’s economic growth was attributed to several possible factors, including the low level of financial development in the SADC region, which is unconnected with the poor level of governance, unstable and fragile financial stability, or low creditworthiness, that are prevalent in developing countries like those in SADC countries. The findings suggest, amongst others, that increasing financial integration could improve the productive capacity of the economy, including more investments and the efficient allocation of capital, thus enhancing economic growth in these regions. This paper sheds new insights on a better evaluation of the past and present theorizing on the subjects of financial integration and economic growth, especially in comparing the separate effects on the economies of the SADC and ECOWAS countries.