Openness of the Economy, Diversification, Specialization, and Economic Growth

Kurihara, Yutaka; Fukushima, Akio

doi:10.15640/jeds.v4n1a3

Cited by 9 publications

(10 citation statements)

References 40 publications

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“…This finding on diversification and economic growth is in line with Aamir (2018) that observes an insignificant-positive relationship between geographical export diversification and economic growth in Pakistan. Nworu (2017) noted that export diversification, particularly in the non-oil sectors, is vital to improving the revenue-based on the government while Kurihara & Fukushima (2016) observe that greater openness of the economy does not always mean the higher economic growth in emerging and developing countries. While Esu & Udonwa (2015) observe that economic diversification (proxied by non-oil trade), had a negative http://journal.uinjkt.ac.id/index.php/signifikan DOI: htttp://dx.doi.org/10.15408/sjie.v8i2.9861 impact on economic growth.…”

Section: Resultsmentioning

confidence: 99%

Export Diversification and Economic Growth in Nigeria

Nwosa

Fasina²,

Ikechukwu³

2019

Signifikan

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The issue of export diversification has been contentious in Nigeria due to the country's unstable growth pattern which is majorly associated with instability in the international oil market and the poor performance of other sectors of the economy. Therefore, this study examines the link between export diversification and economic growth in Nigeria from 1962 to 2016. The study utilizes the Auto-regressive Distributed Lag (ARDL) technique. The result of this study shows that export diversification has a positive but insignificant influence on economic growth in Nigeria. The above result implies that the oil sector still dominates the Nigerian economy while the diversification drive of the government has not been significant in other sectors of the economy. Thus, the study recommends the need for conscious economic policies that would promote the diversification of the entire non-oil sector of the economy. The study concludes that export diversification is an insignificant determinant of economic growth in Nigeria. AbstrakMasalah diversifikasi ekspor telah diperdebatkan di Nigeria, karena pola pertumbuhan negara yang tidak stabil yang sebagian besar terkait dengan ketidakstabilan di pasar minyak internasional dan buruknya kinerja sektor-sektor ekonomi lainnya. Oleh karena itu, penelitian ini meneliti hubungan antara diversifikasi ekspor dan pertumbuhan ekonomi di Nigeria dari tahun 1962 hingga 2016. Penelitian ini menggunakan teknik Auto-regressive Distributed Lag (ARDL). Hasil penelitian ini menunjukkan bahwa diversifikasi ekspor memiliki pengaruh positif tetapi tidak signifikan terhadap pertumbuhan ekonomi di Nigeria. Hasil di atas menyiratkan bahwa sektor minyak masih mendominasi ekonomi Nigeria sementara dorongan diversifikasi pemerintah belum signifikan di sektor-sektor ekonomi lainnya. Dengan demikian, studi ini merekomendasikan perlunya kebijakan ekonomi sadar yang akan mempromosikan diversifikasi seluruh sektor ekonomi non-minyak. Studi ini menyimpulkan bahwa diversifikasi ekspor merupakan faktor penentu yang tidak signifikan terhadap pertumbuhan ekonomi di Nigeria.Kata Kunci: diversifikasi ekspor, pertumbuhan ekonomi, auto-regressive distributed lag JEL Code: C32, F16, O47

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Section: Resultsmentioning

confidence: 99%

Export Diversification and Economic Growth in Nigeria

Nwosa

Fasina²,

Ikechukwu³

2019

Signifikan

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“…Also, trade increases the export capacities via the imports of raw materials and capital goods that eventually lead economic growth. This finding is pertinent with Were (2015), Busse and Koeniger (2015), Pradhan et al (2017) and Keho (2017) but is not pertinent with Musila and Yiheyis (2015), Ali and Abdullah (2015), Kurihara and Fukushima (2016), and Moyo and Khobai (2018). Accordingly, labour and capital also provide their traditional role on fostering the economic growth.…”

Section: Pmg Estimation Resultsmentioning

confidence: 83%

“…For example, Were (2015); Busse and Koeniger (2015); Pradhan et al (2017) and Keho (2017) found positive and significant impact of trade on economic growth. In contrast, Musila and Yiheyis (2015), Ali and Abdullah (2015), Kurihara and Fukushima (2016), and Moyo and Khobai (2018) found an inverse or limited support on this relationship. The studies undertaken by Were (2015), Busse and Koeniger (2015) and Pradhan et al (2017) were conducted on a sample of 85 countries, 108 countries, and the ASEAN countries, respectively.…”

Section: Economic Growth-trade Nexusmentioning

confidence: 94%

“…The study conducted by Keho (2017) is on Cote d'Ivoire. The negative effect of trade revealed by Musila and Yiheyis (2015), Ali and Abdullah (2015), and Kurihara and Fukushima (2016), Moyo and Khobai (2018), is for Kenya, Pakistan, the global panel, 11 Southern African Development Cooperation (SADC) countries, and South Asia, respectively. Furthermore, observed the bidirectional causal association between economic growth and trade openness in the case of major developing and developed countries.…”

Section: Economic Growth-trade Nexusmentioning

confidence: 99%

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Exploring the driving factors of economic growth in the world's largest economies

Rahman

Alam

2021

Heliyon

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This study explores the main factors of economic growth in a panel of the world's 20 biggest economies considering the data period of 39 years . In particular, the roles of international trade, energy use, human capital, and foreign direct investment (FDI) are examined in addition to the roles of capital and labour. To estimate the results the panel autoregressive distributed lag (ARDL) method of Pool Mean Group (PMG) estimator and heterogeneous panel causality test are used with due consideration of cross sectional dependence test, cointegration test and other necessary diagnostic tests. The obtained results ratify the cointegration among the variables used. Energy use, trade, capital, labour, human capital development and foreign direct investment have positive and significant impacts on the economic growth of these countries in the long run. In the short run energy use, trade and capital also have positive and significant effects, but human capital has negative effect on economic growth. A bidirectional causal relationship between economic growth and trade, capital, labour and human capital, and a unidirectional causal link from economic growth to energy use and foreign direct investment are also found. The obtained results are theoretically consistent, and therefore have important policy implications.

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“…At the international level, Kurihara and Fukushima (2016) examined the impact of economic development on the relationship between growth and export diversification. Additionally, the role of trade openness in stimulating export diversification or concentration (specialization) was examined, and whether this contributed to economic growth.…”

Section: Literature Reviewmentioning

confidence: 99%

The Effect of Export Diversification on the Economic Growth of West-Asian Arab Countries

Alshomaly

Shawaqfeh

2020

JSS

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This paper examined the relationship between the patterns of export diversification and economic growth in west Asian Arab countries during the period (2000-2017) using World Bank, UNCTAD, and Pen World data. The study used the DX Diversification Index (UNCTAD). This index measures the country's export divergence from the world's diversification patterns. The OLS and FMOLS methods were used to estimate the study model coefficients. The study found that the exports diversification structures in this group diverged clearly from the world diversification pattern since the exports of group countries driven by a high degree of primary exports concentration. Moreover, the economic growth was influenced positively by human capital, primary products export growth, and the adoption of efficient anti-corruption policies, but, it negatively influenced by trade openness and population growth. The study disclosed a long-term relationship between economic growth and the interactions of explanatory variables in the model, while in the short run the relationship was weak and insignificant. Moreover, there was a reciprocal causality relationship between economic growth and the degree of exports diversification using (DX-index). The study recommends that Arab countries should reduce the reliance on the exports of primary products, enhancing the share of industrial-based exports to achieve sustainable growth and to reduce the impacts of primary export’s prices instability on their economies.

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Openness of the Economy, Diversification, Specialization, and Economic Growth

Cited by 9 publications

References 40 publications

Export Diversification and Economic Growth in Nigeria

Export Diversification and Economic Growth in Nigeria

Exploring the driving factors of economic growth in the world's largest economies

The Effect of Export Diversification on the Economic Growth of West-Asian Arab Countries

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