The relation between capital formation and economic growth: evidence from sub-Saharan African countries

Uneze, Eberechukwu

doi:10.1080/17487870.2013.799916

Cited by 63 publications

(36 citation statements)

References 30 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…Similarly, positive impact of gross fixed capital formation is harmonized with model of Harrod (1939) and Domar (1946), jointly called Harrod-Domar growth model. These are similar to the findings of Hassan, Sanchez, andYu (2011), Ali, Chaudhry, andFarooq (2012), Uneze (2013). The effect of government consumption and population growth is, however, negative and significant.…”

Section: Resultssupporting

confidence: 88%

Comparative Analysis of Financial Systems in Context of Global Financial Crisis

Chaudhary

Abbas

meer³

2018

IBTJBS

View full text Add to dashboard Cite

This study is aimed at analysing the relative effect of global financial crisis across diverse category countries. The top 50 countries of world are selected and categorized on the basis of financial structure and economic development level. The empirical analysis is based on panel data methodology and appropriate dummies are inserted to capture overall as well as relative effect of crisis. The study finds a substantial overall effect of crisis on economic progression of sample countries. The significance divergence for different categories is, however, not observed. Conclusion- The traditional dichotomy of financial systems doesn’t matter much in modern, globalized world. The interlinkages and interdependencies among intermediaries and markets exists across globe that contributed in rapid propagation of shocks. Practical Implications- The results of study can facilitate in better and systematic choice of financial system instead of a random one.

show abstract

Section: Resultssupporting

confidence: 88%

Comparative Analysis of Financial Systems in Context of Global Financial Crisis

Chaudhary

Abbas

meer³

2018

IBTJBS

View full text Add to dashboard Cite

show abstract

“…Similarly, bi-directional causal link has been found between capital accumulation and economic growth in developed countries. This finding is consistent with Ahmed et al (2016), Narayan and Smyth (2008), Neanywa and Makhenyane (2016), Satti et al (2014), Onyinye et al (2017) and Topcu et al (2020), Uneze (2013) . In developed countries, there is bi-directional causality between labour and economic growth.…”

Section: Discussionsupporting

confidence: 90%

Sağlık Harcamaları, Sermaye Birikimi ve Ekonomik Büyüme Arasındaki Nedensel İlişki: Gelişmiş ve Gelişmekte Olan Ülkeler Üzerine Bir İnceleme

Topçu¹,

Atasayar²

2020

Ekonomi, Politika &Amp; Finans Araştırmaları Dergisi

View full text Add to dashboard Cite

The factors related to economic growth, which is one of the main macroeconomic targets, is among the topics that are frequently researched in the literature. Factors associated with economic growth may differ across to the development levels and economic structures of the countries. In this context, the aim of this study is to examine the causal relationship between health expenditures, capital accumulation and economic growth in 29 developed and 10 developing countries over the period 1999-2018 using Dumitrescu and Hurlin (2012) panel causality method. Panel causality findings have proven the existence of bi-directional causality between health expenditures and economic growth, as well as between capital accumulation and economic growth in developed countries. In developing countries, there is unidirectional relationship from economic growth to health expenditures. There is also uni-directional causality from capital accumulation to economic growth. Developed countries should develop policies stimulating capital accumulation as well as health expenditures in order to encourage economic growth, which, in turn, contribute to capital accumulation and health expenditures. On the other hand, developing countries should implement policies that encourage capital accumulation and economic growth to increase health spending. * Bu makale Yeter Atasayar'ın Ebru Topcu danışmanlığında yürüttüğü yüksek lisans tez çalışmasından türetilmiştir.

show abstract

“…Gibescu (2010) concluded that there exists a strong relationship between GFCF and GDP growth. Uneze (2013) stated that causality between gross fixed capital formation and economic growth is bi-directional. This means that increasing capital formation boosts economic growth or that higher economic growth results in higher capital formation.…”

Section: B Literature Reviewmentioning

confidence: 99%

Effect of Foreign Direct Investment on Economic Growth of Pakistan: The ARDL Approach

Jehangir¹,

Lee²,

Park³

2020

Glob Bus Financ Rev

View full text Add to dashboard Cite

This study investigates the effect of foreign direct investment on the economic growth of Pakistan. It also explores the role and contribution of various variables in the growth of the country's economy. Design/methodology/approach: This study examines both the long run and the short run relationship between the variables over the period 1974-2018 by the Auto-Regressive Distributed Lag approach. Findings: We find that in the long run, FDI, gross fixed capital formation and labor force participation have positive effect on the economic growth, whereas military expenditures have negative effect. In the short run model, however, gross fixed capital formation was indicative of having a significantly negative relationship with the economic growth while variables such as FDI, military expenditures and labor force participation were found to have positive impact. Inflation turned out to be significant but negative in both of the models while final consumption expenditure showed insignificance in both of the models. Research limitations/implications: Notwithstanding its contribution to the literature, this study has limitations as well. Apart from those measures adopted in this research, there are also other important measures necessary for a country's economic growth such as skilled labor, work environment, infrastructure, security, technology, and so on. Yet, due to the lack or unavailability of reliable data source, we have not included these valuables in our research. If incorporated in the analysis, these measures may provide more accurate results. Pakistan is a country where military engages in various business activities such as operating department stores, military schools, universities, and hospitals and as well as constructing roads and buildings. Thus such services and contributions of the military, if studied thoroughly, may provide better statistics regarding inward FDI and its contribution towards economic growth of the country. As a policy implication, this study suggests that the Pakistani government should focus on the necessary reforms to attract more FDI, since a low-capital country like Pakistan cannot underestimate the significance of FDI for a sustainable growth. Further researches may be conducted with a focus on the growth-investment possibilities of China Pakistan Economic Corridor. Studies can also be conducted which incorporate agricultural sectors, public and private investments, trust (between land/firm owners and labor) and the existing work/business environment in order to investigate the determinants of economic development of the country. Originality/Value: To the best of our knowledge, there is only one study by Nilofer & Qayyum (2018) that uses the ARDL model to investigate the impact of FDI on economic growth of Pakistan. While they analyzed the variables including GDP, government consumption expenditure, public investment, FDI and lending rate, our study involves military expenditure, labor force participation, final consumption expenditure, gross fixed capital formation, inflation, a...

show abstract

The relation between capital formation and economic growth: evidence from sub-Saharan African countries

Cited by 63 publications

References 30 publications

Comparative Analysis of Financial Systems in Context of Global Financial Crisis

Comparative Analysis of Financial Systems in Context of Global Financial Crisis

Sağlık Harcamaları, Sermaye Birikimi ve Ekonomik Büyüme Arasındaki Nedensel İlişki: Gelişmiş ve Gelişmekte Olan Ülkeler Üzerine Bir İnceleme

Effect of Foreign Direct Investment on Economic Growth of Pakistan: The ARDL Approach

Contact Info

Product

Resources

About