The Impact of Human Capital Development on Economic Growth in Ethiopia: Evidence from ARDL Approach to Co-Integration

Gebrehiwot, Kidanemariam Gidey

doi:10.18034/ajtp.v1i3.374

Cited by 12 publications

(9 citation statements)

References 18 publications

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“…In addition, the government of Kenya offers secondary education to population at no cost or at subsidised level. The result is similar with the results of Husnain et al (2011), Gebrehiwot (2015, Kartal et al (2017) and Gebreegziabher (2018). In contrast, Adawo (2011) found that that the relationship is negative.…”

Section: Short-run Impact Of County Recurrent Expenditure On Economicsupporting

confidence: 90%

The effect of county government expenditure on gross county product in Kenya: A panel data analysis

Mose¹,

Kibet²,

Kiprop³

2019

Afr. J. Bus. Manage.

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From previous studies, the effects of expenditure on economic growth appear to provide mixed results. Despite this uncertainty, theory suggests that expenditure induce growth. In Kenya, economic growth has been fluctuating despite the devolved expenditure increasing over time. It is against this background that this study was carried out to investigate empirically the short-run and long-run effect of components of county spending on growth in Kenya using panel data set over the period 2013 to 2017. Employing Harris-Tzavalis test, the study tested for the panel unit root and found that all variables were non-stationary at their level except gross county product (GCP). To check if the variables have long-run relationship, this study applied F bounds test. The result for this test revealed that there exists a long-run relationship among the GCP growth and regressors in the model. Once co-integrating was confirmed using F-bound, the long-run and ECM estimates of the ARDL model were obtained. The ARDL results revealed that spending on recurrent expenditure exerts a positive and significant effect on economic growth both in short-run and long-run hence confirming Keynesian theory in Kenya. However, capital expenditure was insignificant during the study period. From a recommendation standpoint, this study submits that the policymakers need to put in place policies that will improve budget allocation and execution so as to improve expenditure increase to capital infrastructure. This is necessary since counties lack infrastructures that help promote private capital accumulation and consequently county GCP.

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Section: Short-run Impact Of County Recurrent Expenditure On Economicsupporting

confidence: 90%

The effect of county government expenditure on gross county product in Kenya: A panel data analysis

Mose¹,

Kibet²,

Kiprop³

2019

Afr. J. Bus. Manage.

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“…Such findings are consistent with the endogenous growth theories which argue that an improvement in human capital (skilled) improves productivity (Gisore, 2017). The result illuminate with the conclusion of Gebrehiwot (2015); and Kartal et al (2017) that the relationship is positive in short-run.…”

Section: Goodness Of Fit Testsupporting

confidence: 89%

The Relation between the Financial Market Development and Economic Growth in Jordan

Aldweik¹,

Abdul-Khaliq²,

Jaradat³

2020

JESD

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Although it is theoretically expected that fiscal decentralization leads to efficient provision of local public services and induces economic growth, there is a mixed outcome of the non-devolved and devolved effect on economic expansion across earlier empirical studies. This could be due to non growth-enhancing expenditures that crowdout outlays that are meant to boost economic growth. Further, devolved allocation is small, about 15 % of total revenue, to full stimulate economic growth in Kenya. However, national government spends a substantial amount in counties to complement devolved expenditure. Therefore, the issue of which non-devolved expenditure by national government can foster permanent movements in county economic growth becomes core. The panel ARDL and Kao co integration technique were used to test the linkage between non-devolved expenditure and economic growth in Kenya during the period, 2013-2017. The panel ARDL regression results revealed that the effect of nondevolved expenditure on economic growth was positive and significant in both long-run and short-run. The findings provide a basis for recommendation on the need for national government to increase budget allocation and execution in counties to complement devolved expenditure and also stimulate county economic growth in long-run.

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“…Health and material well-being were taken as control variables. Besides, ARDL and other statistical tools are used to analyze well-being, tourism, economic growth and other factors (Gebrehiwot, 2016;Ahmad and Riaz, 2011;Shahbaz and Aamir, 2008;Lee et al, 2013;Ridderstaat et al, 2016). The following equation ( 1) and ( 2) are assumed to analyze the relationship between the mentioned variables.…”

Section: Prr 52mentioning

confidence: 99%

The quest of tourism and overall well-being: the developing economy of Pakistan

Khan

Bibi

Lyu

et al. 2020

PRR

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Purpose This study aims to examine the causal relationship between tourism and overall well-being. The main objective of this research is to inform the policymakers that tourism can play a vital role in shaping the overall well-being in the developing economies. Design/methodology/approach This investigation used several time series techniques and procedures that include bounds test and autoregressive distributed lag mechanism to analyze the relationship between tourism and overall well-being in Pakistan by using time series data for the period 1980-2016. Findings The findings suggest a significant positive relationship between tourism and overall well-being both in the short and long run. The authors find that tourism and overall well-being affect each other positively. Practical implications This research indicates that policymakers and government can improve the overall well-being through tourism development. However, tourism policies and long-term planning should be focused on sustainable developments for achieving long-term goals. Besides, special incentives should be provided to the private sector for tourism development. Originality/value To the best of the authors’ knowledge, this is the first investigation that examines the causal relationships between tourism and overall well-being through objective indicators in a developing economy. This study fills the immense literature gap and provides new directions to scholars to investigate the mentioned relationship through objective indicators.

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The Impact of Human Capital Development on Economic Growth in Ethiopia: Evidence from ARDL Approach to Co-Integration

Cited by 12 publications

References 18 publications

The effect of county government expenditure on gross county product in Kenya: A panel data analysis

The effect of county government expenditure on gross county product in Kenya: A panel data analysis

The Relation between the Financial Market Development and Economic Growth in Jordan

The quest of tourism and overall well-being: the developing economy of Pakistan

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