The effects of interest rate on economic growth: Further  insights from the Gambia

Njie, Matarr; Badjie, Momodou

doi:10.5897/jeif2021.1127

Cited by 8 publications

(3 citation statements)

References 5 publications

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“…There is a long-run relationship between economic growth and inflation in Ind onesia, Singapore, Thailand, and the Philippines, except Malaysia; this result does not vary from the recent studies (see (Karahan & Colak, 2020;Rehman, Cismas, & Milin, 2022;Sinha, 2022)). A long-run relationship is detected between economic growth and interest rates in all countries, consistent with recent studies (see (Njie & Badjie, 2021;Oroud et al, 2023)). Economic growth and exchange rate also have a long-term relationship in Indonesia, Singapore, and Thailand; this result is similar to the findings obtained by Mawutor et al (2023).…”

Section: Resultssupporting

confidence: 91%

Economic growth and the matters of inflation and unemployment: Evidence from ASEAN-5

Tee,

Gan,

Hadi

et al. 2024

5002

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The purpose of this study is to examine the relationship between economic growth, inflation, and unemployment. One notable feature of empirical research is the rarity of studies that examine the effects of unemployment and inflation on economic growth in different economic environments, despite the large number of studies that look into these two variables. The study also incorporates interest rates and exchange rates as control variables. This study employs time series data spanning from 1994 to 2020 for selected 5 countries of the Association of Southeast Asian Nations (ASEAN), namely Indonesia, Malaysia, Singapore, Thailand, and the Philippines, under diverse economic conditions. The analysis utilises the autoregressive distributed lag (ARDL) method to examine the relationships between economic growth and its determinants. The empirical results of the study reveal: (1) Economic growth benefits from reducing inflation, interest rates, and exchange rates, underscoring their positive impact on development; and (2) Elevated unemployment rates hinder economic growth. These findings provide policy implications for policymakers in managing inflation, unemployment, interest rates, and exchange rates to foster sustained economic development.

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Section: Resultssupporting

confidence: 91%

Economic growth and the matters of inflation and unemployment: Evidence from ASEAN-5

Tee,

Gan,

Hadi

et al. 2024

5002

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“…As argued by Njie and Badjie (2021), the preferable model for the assessment of the determinants of public debt is the vector error correction model (VECM) because the time series vary and are not stationary at the level term. However, the data are mostly stationary.…”

Section: Model Specificationmentioning

confidence: 99%

The determinants of public debt in the Gambia: Estimates using the autoregressive redistributed lag (ARDL) bound cointegration technique

Saikouna,

Matarr

2023

J. Econ. Int. Finance

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The main objective of this paper is to examine the key determinants of public debt in the Gambia. To achieve this objective, the Autoregressive Distributed Lag (ARD) method was employed to examine the impact of short-run and long-run selected macroeconomic variables as well as a government effectiveness variable in determining the public debt level of The Gambia during the period 2000 to 2019. The results reveal that trade openness and gross fixed capital formation have an increasing impact on the Gambia's public debt in the long-run. On the other hand, GDP growth, official exchange rate, and the government effectiveness variables have been found to have decreasing effects on public debt levels in the long-run. However, none of the variables show a significant relationship with public debt of levels of The Gambia in the short-run. Given these findings, it is recommended for the Government of the Gambia to improve the country's governance effectiveness, in particular, as weak government institutions was found to be one of the main drivers of the country's public debt in the long-run.

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“…However, Mushtaq and Siddiqui (2016) presented an alternative perspective, suggesting that interest rates actually foster economic growth. In a recent study conducted by Matarr and Momodou (2021), has shown that there is no significant impact of interest rates on economic growth. According to recent studies conducted by Ukangwa and Ikechi (2022), Egbujor (2012), and Godwin and Sergius (2021), it has been suggested that the exchange rate has a detrimental impact on economic growth.…”

Section: Introductionmentioning

confidence: 99%

Analysis of the Relationship between Interest Rate, Exchange Rate and Economic Growth in Nigeria

Gbarawae,

TONYE

2023

gijmss

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This study analyses the relationship between interest rate, exchange rate and economic growth in Nigeria spanning from 1980-2022. Data for the study were obtained from World Development Indicators. The study undertook unit root test using the Augmented Dickey Fuller (ADF) method. Consequently, based on the outcome of the ADF result, the research used Auto-regressive Distributive Lag (ARDL) model to determine the existence of a long-run interactive relationship between interest rate, exchange rate, and economic growth in Nigeria. The Auto-regressive distributive Lag (ARDL) bound test result of the long-run interactive relationship between the variables reported the existence of long-run relationship. The study further revealed that the interaction between real interest rate and exchange rate on growth of gross domestic product is negative, but statistically significant both in the long-run and previous period of the short-run. Similarly, the interaction between lending interest rate and exchange rate is negatively related with growth of gross domestic in the long-run. However, deposit interest rate and exchange rate recounted a positive but insignificant interactive relationship. It has been suggested, among other recommendations, that the Central Bank of Nigeria (CBN), should raise deposit interest rate in order to incentivize individuals to save a greater portion of their income. This will enable financial institutions to enhance their capacity to allocate more cash towards investment, thereby fostering economic growth.

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The effects of interest rate on economic growth: Further insights from the Gambia

Cited by 8 publications

References 5 publications

Economic growth and the matters of inflation and unemployment: Evidence from ASEAN-5

Economic growth and the matters of inflation and unemployment: Evidence from ASEAN-5

The determinants of public debt in the Gambia: Estimates using the autoregressive redistributed lag (ARDL) bound cointegration technique

Analysis of the Relationship between Interest Rate, Exchange Rate and Economic Growth in Nigeria

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