Fiscal Policy, Institutions, and Economic Growth in Asian Countries: Evidence from Pedroni’s Cointegration Approach

Abdullah, Hussin; Habibullah, Muzafar Shah; Baharumshah, Ahmad Zubaidi

doi:10.32890/mmj.12.1-2.2008.8956

Cited by 5 publications

(6 citation statements)

References 34 publications

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“…We find that the estimated coefficients of 𝑙𝑛𝑘 𝑖𝑡 and 𝑙𝑛(𝑛 + 𝑔 + 𝛿) 𝑖𝑡 are consistent with the economic growth theory and some existing empirical studies (e.g. [36], [49], [52]). Moreover, the empirical results based on Model 2 reveal that financial development has a positive impact on economic growth in developing countries.…”

Section: The Results Of the Pedroni's Panel Cointegration Test Insupporting

confidence: 88%

Analysis of Finance--Growth Nexus in Developing Economies: Does the Quality of Leadership and Technology Matter?

Salisu

2024

KSS

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This article investigates the effects of national leadership and telecommunication technology on the finance–growth nexus using balanced panel data from 50 developing countries for the 1997–2017. The study employs a set of nonstationary panel data approaches to investigate the long-run relationships between the variables of interest. The findings show that there is a long-term relationship between the variables wherein financial development, telecommunication technology, and quality of national leadership were found to have significant positive impact on economic growth in developing countries. This implies that financial development, telecommunication technology, and the quality of national leadership are important factors for promoting growth. Moreover, the results suggest that the effects of financial development on economic growth is contingent on the quality of national leadership and the sophistication of telecommunication technology in developing countries. The interaction term and marginal effects computed are positive and significant at all levels of telecommunication technology as well as on the quality of national leadership. This means that both the quality of national leadership and telecommunication technology have large direct and indirect positive impacts on economic growth in developing countries, and that financial development contributes more significantly and robustly to economic growth when telecommunication technology is sophisticated and national leadership is of high quality. Keywords: economic growth, financial development, ICT, panel data

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Section: The Results Of the Pedroni's Panel Cointegration Test Insupporting

confidence: 88%

Analysis of Finance--Growth Nexus in Developing Economies: Does the Quality of Leadership and Technology Matter?

Salisu

2024

KSS

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“…This implies that South Asian countries public debt actually made a significant contribution to the economic growth. This empirical study supports the conclusions of Kim et al (2021), Benimana (2020), Putunoi and Mutuku (2013) and Abdullah et al (2019)that public debt considerably and positively influenced economic growth. However, the results contradict those of Shijaku and Gjokuta (2013)and Asteriou and Pilbeam (2021), who found that there is negative effect of public debt on economic growth.…”

Section: Discussionsupporting

confidence: 88%

“…This outcome is consistent with the Keynesian perspectives theory. Abdullah et al (2019) for the years 1970-2016, research was done to investigate the connection between fiscal policy and economic growth in the ASEAN-5 countries. The Autoregressive Distributed Lag (ARDL) approach has been utilized based on the data's nature.…”

Section: Empirical Reviewmentioning

confidence: 99%

Effects of Fiscal Policy on Economic Growth: Empirical Evidence from South Asian Countries

Phullel

2023

Lumbini J. Bus. & Econ.

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This study aims to find the effects of fiscal policy variables on economic growth in South Asian nations based on panel data of 21 years from 2001 to 2021.The study adopted descriptive and causal relationship research design. In this study, the correlation matrix is used to describe the relationship between variables, and the hausman test is applied to select the fixed and random effect models. The results revealed that gross capital formation and public debt had significant and positive effect on economic growth in South Asian countries. Tax revenue was found to have significant but negative effect on economic growth while government expenditure was found to have insignificant and positive effect on economic growth. The study therefore concludes that fiscal policy has significant relationship with economic growth in South Asian Countries. Additionally, efforts should be made while implementing fiscal reforms that focuses public expenditure to a manageable and specified economic sectors.

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“…Despite this, a number of publications suggest the importance of governance and the necessary institutional conditions. Some researchers consider governance a forecast of growth [39] and the government institutions play a significant part in economic growth [40,41]. Some authors refer to effective institutions in formulating the long-term growth, showing that countries with weaker institutions face a crisis and stagnation [42].…”

Section: Governance and Economic Growthmentioning

confidence: 99%

Role of Governance in Debt-Growth Relationship: Evidence from Panel Data Estimations

Abbas

Ramzan

et al. 2021

Sustainability

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This paper provides an empirical analysis of the relationship between debt and national output mediated by a measure of the quality of state governance. Using WGIs dataset of 106 countries for the period 1996–2015, the paper analyzes the mediated effect of governance on debt-growth relationship. For this purpose, we use the fixed effect (LSDV) and system GMM estimation technique in order to overcome the possible problem of endogeneity. Results show the non-linear pattern between public debt and economic growth via governance. Although, public debt has negative impact on economic growth, but the results are statistically positive and significant when public debt is interacted with governance, which confirms that governance is a channel by which public debt influences economic growth. Moreover, we calculate the threshold of governance which shows that the public debt has positive impact on economic growth when the governance level is higher than the threshold and adversely affects the economic growth in the case of low level of governance than threshold. Evidence from this study reveals the fact that governance plays a mediating role in debt-growth relationship as there is a pattern of complementarity between public debt and governance: the higher the level of governance, the lesser the adverse effect of public debt on economic growth.

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Fiscal Policy, Institutions, and Economic Growth in Asian Countries: Evidence from Pedroni’s Cointegration Approach

Cited by 5 publications

References 34 publications

Analysis of Finance--Growth Nexus in Developing Economies: Does the Quality of Leadership and Technology Matter?

Analysis of Finance--Growth Nexus in Developing Economies: Does the Quality of Leadership and Technology Matter?

Effects of Fiscal Policy on Economic Growth: Empirical Evidence from South Asian Countries

Role of Governance in Debt-Growth Relationship: Evidence from Panel Data Estimations

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