Monetary freedom and economic growth in New European Union Member States

Ivanović, Vladan; Stanišić, Nenad

doi:10.1080/1331677x.2017.1305803

Cited by 12 publications

(13 citation statements)

References 44 publications

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“…An increase in trade freedom by one unit leads toward economic growth by 0.53 percentage point in pre-crises period and it increase to 0.75 percentage point in overall observed period analysis. These finding are in line with the study of Ivanović and Stanišić (2017) which found a positive and robust relationship between trade freedom (TF) and economic growth in both pre-crises period and observed period for new European Union member states. And finally the coefficient of regulations (REGU) is positively significant which means that one unit increases in regulation (REGU) index raises the economic growth by 0.12 percentage point in pre-crises period and 0.80 percentage point in overall observed period.…”

Section: Resultssupporting

confidence: 90%

Does Really Economic Freedom Matter for Growth in South Asia? Empirical Evidences from Pre-Economic Crises and Post-Economic Crises Period

Nadeem

Yang

Akhtar

et al. 2019

Asian Economic and Financial Review

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The discussion about the relationship between economic freedom and economic growth is not new and has always been extensively discussed in economic literature. But the question in this area is the consideration of the effects of global financial crises of 2008. This study attempts to answer the question: How does economic crises effect freedomgrowth nexus? This study analyses the relationship between economic freedom index (measured by Fraser Institute), individual components of economic freedom and GDP per capita growth of 5 South Asian countries over the period of 1990-2015. Fixed effects regression results reveals that GDP per capita growth is positively affected by economic freedom index and this relationship has weakened by the global economic crises of 2008. It does not mean that increasing economic freedom is good for economic growth since one of the components of economic freedom has negative effect on growth. Contribution/ Originality: This study contributes in existing literature by checking the role of economic freedom and its individual components for economic growth of South Asia without considering the role of global economic crises of 2008 and then adds up the post crises period into analysis. The results of Fixed effects test on two different models shows that global economic crises severely deteriorates the impact of economic freedom and one of its components (monetary freedom) tends with negative impact on economic growth on selected countries. 1. INTRODUCTION South Asia is the fastest growing region in the world with average GDP growth 5-7 percent since during last two decades and it is projected with 7.1 percent by 2018. After global financial crises of 2008 several decisions were made by South Asian Association for Regional Cooperation (SAARC) countries in its summit of 2010. Secretary General Fathimath Saeed stated that under the theme of "Building Bridges" and more liberalization among member countries would be source of closing of space between intent and implementation of regional policies. President Mohamed Nasheed, chairperson of 17 th SAARC summit also addressed areas of cooperation in which there is need of intense progress should take place, such as trade liberalization, more economic integration and integrity within and among member states.

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Section: Resultssupporting

confidence: 90%

Does Really Economic Freedom Matter for Growth in South Asia? Empirical Evidences from Pre-Economic Crises and Post-Economic Crises Period

Nadeem

Yang

Akhtar

et al. 2019

Asian Economic and Financial Review

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“…Bruce and Turnovsky (2013a) have attributed the growth in the economy to demographic factors like fertility, life expectancy, age among others (see Bruce & Turnovsky, 2013b; Yew & Zhang, 2013; Mierau & Turnovsky, 2014; Bloom, Canning, & Sevilla, 2004; Well, 2007). Another strand of studies has created a link between growth and macroeconomic variables, and has also identified different directions of causality between both (Alfaro, Chanda, Kalemli‐Ozcan, & Sayek, 2004; Ivanović & Stanišić, 2017; Prašnikar, Redek, & Drenkovska, 2017; Yülek, 2017). Recently, institutional qualities have also been assigned a chief role in determining economic growth (Acemoglu, Johnson, & Robinson, 2005; Barro, 2003; Bildirici, 2008; Butkiewicz & Yanikkaya, 2006; Chong & Calderon, 2000; Fraj, Hamdaoui, & Maktouf, 2018; Gwartney, Holcombe, & Lawson, 2004; Henderson, Papageorgiou, & Parmeter, 2011; Ji, Magnus, & Wang, 2014; Klein, 2005; Law, Azman‐Saini, & Ibrahim, 2013; Sobel, 2008; Valeriani & Peluso, 2011).…”

Section: Literature Reviewmentioning

confidence: 99%

The determinants and interrelationship of carbon emissions and economic growth in African economies: Fresh insights from static and dynamic models

Nathaniel

Barua

Hussain

et al. 2020

Journal of Public Affairs

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This study explores the interrelationship between CO2 emissions and economic growth in selected Africa economies from 1990 to 2014 providing evidence from both static and dynamic models. Results show that increases in energy use have a significant and positive effect on economic growth; which goes to show that growth in Africa is actually energy dependent. Further findings suggest that CO2 emissions have no significant contemporaneous effect, however, a significant and negative effect at a one‐period lag on economic growth. The significance of the impacts is consistently confirmed by both the static and dynamic estimations. Also, trade adds to economic growth and also contributes to environmental deterioration in Africa. There is a dire need for Africa to adjust its energy portfolio by shifting to clean energy sources which will enhance sustainable economic growth without deteriorating the environment.

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“…If household and enterprise lending have an independent impact on growth, it might shape our understanding of why the effect of financial development on economic growth varies across countries, as well as provide some important insights regarding the channels through which financial intermediaries stimulate GDP growth (see Beck et al, 2008). Financial repression policies have strong impact on the finance-growth link (Yülek, 2017) as well as monetary freedom (Ivanović & Stanišić, 2017).…”

Section: Introductionmentioning

confidence: 99%

Financial Development and Economic Growth in Poland 1990-2018

Škare

Sinković

Porada-Rochoń

2019

Technological and Economic Development of Economy

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The aim of the paper is to study finance-economic growth nexus in Poland using a time series approach. We find evidence of the existence of the finance-economic growth link in Poland. Most empirical studies do not consider the lending structure of the financial sector (share of households’ vs firms in total credits). The obtained results show that when using the share of households and companies in total credits, the long run empirical relationship in VECM is statistically significant and larger. Empirical studies using total private credit share in the GDP or the value/volume of total credits tend to undervalue the impact of financial development on economic growth. In the case of Poland, empirical evidence that supports this hypothesis was found, and therefore policymakers and researchers should take bank lending structure into account. Furthermore, the study shows that financial series may possibly have long memory properties and that researching the financial development-growth nexus could require using fractional integration methods. The reported evidence suggests financial development plays a significant role in both economic growth and credit growth. Due to data limitation, this study focuses on a single country case – Poland with the need for further research (larger sample).

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Monetary freedom and economic growth in New European Union Member States

Cited by 12 publications

References 44 publications

Does Really Economic Freedom Matter for Growth in South Asia? Empirical Evidences from Pre-Economic Crises and Post-Economic Crises Period

Does Really Economic Freedom Matter for Growth in South Asia? Empirical Evidences from Pre-Economic Crises and Post-Economic Crises Period

The determinants and interrelationship of carbon emissions and economic growth in African economies: Fresh insights from static and dynamic models

Financial Development and Economic Growth in Poland 1990-2018

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