Economics Commons^™

Trade Integration And Economic Growth In Africa: Lessons From Sadc And Ecowas Regional Trading Blocs, Kofi Ampoma Asuako

Masters Theses

The literature on the effects of free trade agreements (FTA) or trade liberalization on economies is vast and tends to focus on the post-liberalization performance of countries, particularly in Europe and North America. However, an analysis of how varying levels of integration within free trade blocs in Sub-Saharan Africa affect economic growth does not appear to be in the international economics literature. This analysis is vital as 54 out of 55 African union member States have begun trading under the African Continental Free Trade Agreement (AFCFTA) which intends to gradually decrease and ultimately do away with customs duties and non-tariff …

The Effects Of Imf's Lending And Conditionalities On Economic Growth: Case Of Sadc Countries, Lutete Celina Carlos

Masters Theses

I examine the impact of IMF credit use and its conditions on economic growth performance in 12 South African countries over a period of 1999-2019. The work adopts an empirical and quantitative approach to analyzing the relationship between the GDP per Capita, the use of IMF Credit, Government Final Consumption Expenditure, Net Domestic Credit and Current Account balance. These variables are the most recommended in the IMF conditionalities during the lending arrangements with SADC members. The study uses Fixed-effect approach to evaluate how the use of IMF program and the conditions imposed directly affects economic growth. A dummy variable is …

Growth Convergence Across Countries And Regions In The Long Run: An Empirical Study Using Panel Analysis (1980-2018), Portia Mensah

Masters Theses

With the emergence of new superpowers, the changing landscape of the global economy, and the heterogeneity of growth experiences being discovered in recent times, the concept of growth convergence must be revisited. This study examines whether developing countries are catching up with the advanced countries in terms of their per capita income. The study uses a panel analysis of 69 countries over a period of 39 years spanning from 1980 to 2018 to test for growth convergence (both absolute and conditional) among countries based on the Augmented Solow model. The countries were further divided into three regions namely, Europe, Asia, …

Financial Development In Developing Countries, Obinna Franklin Ezeibekwe

Masters Theses

What are the economic, political, institutional, socio-cultural, and geographical determinants of financial development in developing countries? This paper uses the two-way fixed effects (with clustered standard errors) and annual panel data from 1980 to 2018 for 69 developing countries in sub-Saharan Africa, Middle East and North Africa, East and South Asia, Latin America, and the Caribbean to address this question. The principal component analysis is employed to construct a financial development index based on three financial development indicators. This study builds on previous studies by introducing new potential determinants of financial development, such as the perception of corruption, and by …

Do Shifts In Labor Shares In Productivity Growth Affect Poverty And Inequality? A Comparative Study Of Sub-Saharan Africa And Asia, Precious W. Allor

Masters Theses

This paper examines whether productivity growth induced by intersectoral labor movement affects inequality and poverty. To address this question a nonparametric shift-share decomposition technique is employed to decompose productivity growth into the structural change component; the component of productivity growth that is induced by the intersectoral labor movement, and the technological change component; the component of productivity growth that is induced by capital or improvements in productive efficiency. The paper then examines the long-run impact of structural change-induced productivity growth on poverty and inequality for a sample of 28 countries, and with a focus on Sub-saharan Africa and Asia. The …

The Impact Of Dutch Disease: The Case Of Nigeria, Halimat Atinuke Laguda

Masters Theses

Nigeria, over the years, has been showing a rapid appreciation of the domestic currency, a rise in real wages and the service sector and a slow-down in the industrial production which are all signs of presence of Dutch disease which predicts that a country with large natural resource rents may experience a de-industrialization and a lower long term economic growth. This paper analyses the impact of Dutch disease in Nigeria Ordinary Least square method, Two-Stage Least Square and Autoregressive Distributed Lag with a system of equation from 1981 to 2017 and found that the real wage rate emphasizes on the …

A Comparative Analysis On Output Gap - Inflation Relation: The New Keynesian Approach, Oladimeji Tomiwa Shodipe

Masters Theses

The thrust of this research paper is to examine the inflation information that is contained in the output gap using the New Keynesian Phillips Curve framework. As informed by the model, the study also sets to investigate inflation persistence and the influence of forward inertia on the current inflation. This paper follows the Gali and Monacelli (2005) of the small open-economy type of model. However, the current study differs by introducing external factors (trade and real exchange rate) not only on the hybrid model, also on the backward, forward and the hybrid restricted models for time-series data (1971-2017) of all …

Government Expenditure And Unemployment: Empirical Investigation Of Sub-Saharan African (Ssa) Countries, Grace Ayiwah Fosu

Masters Theses

Over the years, there have been increasing trends in government expenditures in most countries in Sub-Sahara Africa, but some of the social-economic indicators such as health, unemployment, education, inflation, and the others paint a blurry image of the effect of the rising public spending. It is worrisome to see that pictures painted by the economic indicators show that budgets made by governments in Sub-Sahara Africa look good on paper than their actual effect in the economy (Andrews, 2010; Peterson, 2010). As a result of this, the question that keeps emerging is that “does government spending actually impact economic indicators in …

Resources, Financial Sector Development, Governance And Growth In South Africa: A Time Series Analysis, Kehinde Abiodun

Masters Theses

We examine the impact of financial sector development - proxied by domestic credit and market capitalization - mineral rent, and quality of governance on economic growth in South Africa. The novelty of this thesis lies in the introduction of an interaction term between mineral rent and quality of governance, which is iterated along with the other afore-mentioned variables in a five-model estimation. Two other variables: trade and government expenditure are also added to the mix.

We developed five models to test the impacts of the different variables using the error correction model. In all five models, we find, consistently, a …

Trade Openness, Government Spending, Institutions And Their Effects On Economic Growth In Selected Mena Countries, Saif Mohammad Alqahtani

Masters Theses

The objective of this study to examine how import, export, government spending, and institutions impact on economic growth. Of the four selected North African countries, (Egypt, Morocco, Algeria, and Tunisia), six periods of five years from 1985-2015, we used the panel data model. In this model, we used panel data which consist of random effect and fixed effect, based on Hausman test, we selected one of them. The GDP per capita growth was used as a dependent and import, export, government spending as independent main variables. Also, gross capital formation (GCF), inflation, population growth, and HDI which consist of life …

The Impact Of Fiscal Policy On Economic Growth: Empirical Evidence From Four South Asian Countries, Tasnia Symoom

Masters Theses

There is a constant debate about the effectiveness of fiscal policy on economic growth of developing countries. Policy makers in developing countries generally attempt to address socioeconomic issues such as poverty, unemployment, hunger, poor investment, and illiteracy while adjusting the levels of public spending and determining tax rates. This thesis examines the impact of fiscal policy on economic growth in four countries of South Asia. For reasons of data availability I choose four of these countries – Bangladesh, India, Pakistan, and Sri Lanka – for the period 1980 to 2016. I use the Error Correction Model (ECM) and Autoregressive Distributed …

Investigating The Impact Of Foreign Direct Investment On Domestic Investment In Sub-Saharan Africa: A Case Study Of Kenya And South Africa, George Anaman

Masters Theses

In the progression towards economic growth, countries consider investment as a critical feature in raising productivity levels by boosting technological progress and reducing the unemployment rate. In recent years, the government of South Africa and Kenya have both enacted policies to entice Foreign Direct Investment (FDI) in the view of creating more jobs and bolstering the economy. However, in the bid to attract these foreign investors, FDI may either end up complementing or stifling local investments over time. From this perspective, the objective of the study is to investigate the impact of FDI on Domestic Investments in Sub-Saharan Africa (SSA) …

Governance And Economic Growth In Developing Economies: A Comparative Study, Hamid Lahouij

Masters Theses

In the light of growing interest in the relationship between governance and economic growth, this research uses pooled cross-country times series for the time span 2002-2014 to investigate the impacts of governance and other growth determinants on economic growth of low-income, lower-middle income, and upper-middle income economies. This paper contributes to the literature on governance, economic development indicators, and economic development in novel ways. The research finds that governance is highly positively associated with economic development in developing countries regardless of their level of income. Moreover, while the research concludes that voice and accountability, political stability, and rule of law …

Growth Performance Of Transition Countries After 25 Years, Alena Kalodzitsa

Masters Theses

The present study provides with the most recent summary of growth performance in transition countries after 25 years since the change of the regime. The empirical analysis estimates growth, applying Generalized Least Squares (GLS) estimation technique using a panel of 26 transition countries for the period of 25 transition years (1990-2014). Empirical findings of this study confirm that growth performance can be explained by the degree of structural reforms, stabilization, and initial conditions along with other factors (external growth, regional tensions, government expenditure, and oil balance). Even if initial conditions are important for growth, its influence consistently declines.

The transition …

Export-Oriented Entrepreneurship Intensity And Economic Growth In Developing And Developed Countries, Xueting Sun

Masters Theses

This paper analyzes the impact of export-oriented entrepreneurship intensity on national economic growth using data for 64 countries over the 2006-2013 period. We draw on entrepreneurship, entrepreneurship and economic growth, export-oriented entrepreneurship and economic growth, and export intensity of entrepreneurship and economic growth theories to affirm that export-oriented entrepreneurship and export-oriented entrepreneurship intensity is profound for the national economic growth of countries.

The findings suggest that greater total entrepreneurial activity (TEA) is associated with a higher rate of economic growth in developed countries but not in developing countries. Also, greater export-oriented entrepreneurial activity (EEA) is associated with a higher rate …

Structural Change And Productivity Growth In Developing Countries, Ahmed Salim Nuhu

Masters Theses

The dual-economy model predicts that holding productivity constant, labor reallocation from less to more productive sectors, also known as 'structural change' results in improvement in economy-wide productivity. The objective of this thesis is to test the empirical predictions of this model using sectoral-level data from twenty-eight developing countries. Using the shift-share growth decomposition approach, we find regional growth-enhancing effects of structural change in Asia, Latin America and North Africa from, 1980 to 2000 and growth-reducing effects in Sub-Saharan Africa over the same period. However, as intersectoral productivity gaps disappeared after 2000, technological progress led the growth process in much of …

Trade Openness, Foreign Direct Investment And Infrastructure Spending: A Comparative Analysis Of Their Common Role In The Economic Development Between Selected Developed And Developing Economies, Yasser M. Alwafi

Masters Theses

This study examines the literature on how trade, foreign direct investments, and infrastructure development affect economic growth of selected developed and developing economies. A comparative analysis will be carried between developed economies (G7 countries) represented by Canada, France, Germany, Italy, Japan, the United Kingdom, and the United States while the developing economies (BRICS countries) are represented by Brazil, Russia, India, China and South Africa. The comparative analysis will be carried between years 1985 to 2015. In addition, the paper will establish the relationship between trade and economic growth in both developing and developed economies. Furthermore, the paper will establish that …

Does Governance Matter To Economic Growth? Evidence From Mena Countries, Hamid Lahouij

2016 Awards for Excellence in Student Research and Creative Activity - Documents

This research paper uses panel data for the time period 2002-2013 to investigate the impacts of governance and other economic growth determinants on economic growth of some selected oil-importing MENA countries. This paper contributes to the literature on governance, economic development indicators, and economic development in novel ways. The research finds that governance is strongly associated with the economic development. However, the results of this research might conflict with others’ results if their research combines oil-exporting and oilimporting countries in their sample or use different methodologies. Therefore, the policy recommendations should be used cautiously.

Financial Development, Human Capital, And Economic Growth: A Cross Country Analysis, Keshob Sharma

Masters Theses

Taking a panel of 66 countries and employing panel data methodology, this study examines the impact of financial development, human capital and their interaction on economic growth. This study covers a period of 40 years from 1971 to 2010. To smooth out the short-run fluctuations in the data for my growth study, I take 5-year non-overlapping averages of variables. As a proxy for financial development, I use private credit by deposit money banks or liquid liabilities, as a percent of GDP. In turn, human capital is represented by the percentage of population above 25 years of age with the secondary …

Economic Growth Paradox In Nigeria: A Perspective From Natural Resource Wealth Time Series Analysis For The Period 1980 - 2013, Jamiu Amusa

Masters Theses

This thesis empirically examines the paradox of economic growth in Nigeria with a viewpoint from natural resource wealth. The question involved in this study is that whether natural resource wealth has a positive impact on economic growth in Nigeria or not. The economy of Nigeria is observed to be growing on paper but deplorably, poverty and unemployment is on a progressive increase in reality. The study uses the endogenous growth theory (AK Model) in terms of how resource wealth can influence economic growth. It exploits time series analysis (Unit Root and Co-integration) techniques to test for the existence of a …

Does Foreign Aid Promote Growth? Evidence From Africa, Mai Abdulaziz Alghamdi

Masters Theses

Taking a panel of 54 African countries and employing pooled, GLS, and panel regression, this study investigates the impact of foreign aid, policies, and their interaction on economic growth. This study covers a period of 35 years from 1980 to 2015. The key variables of this study are aid, measured by the official amount of foreign aid as a percentage of GDP by the recipient countries and policy, measured by an index created using linear estimation of various policy variables associated with political, economic and fiscal freedom; the Sachs-Warner measure of openness and World bank's Country Policy and Institution Assessment …

Evaluating Growth Slowdowns: Does Middle-Income Trap Exist?, Nusrat Farah

Masters Theses

Growth theories suggest that the factors affecting growth at low-income and high-income countries can be different. If countries struggle to graduate to high-income growth strategies, they may find themselves "stuck" at some middle-income level. This phenomenon can be termed as "middle-income trap". Using a panel of 145 countries over a period of 55 years, this study attempts to identify the existence of "middle-income trap" and its determinants. The aim of this study is to inspect whether the countries really get "stuck" at middle-income levels and if so, then pinpoint the factors associated with growth slowdowns. By employing panel probit estimations, …

Remittances And Economic Growth Determinants In Low, Lower Middle, And Upper Middle Income Countries: A Comparative Study, Md Shahedur Rahaman Chowdhury

Masters Theses

The research uses pooled cross-country times series for the time period 1981-2010 to investigate the impacts of remittances and other economic growth determinants on economic growth of low-income, lower-middle income, and upper-middle income economies. This study divides this 30-year period into six non-overlapping five-year periods. This paper contributes to the literature on remittances, economic growth indicators, and economic growth in novel ways. The research finds that remittances are not associated with the economic growth of low-income economies. However, the research concludes that remittances are positively and significantly related to economic growth of Lower Middle-Income and Upper Middle-Income Economies. Nevertheless, the …

Predictive Power Of Aggregate Accounting Earnings Growth For Growth Of Future Gdp, Meng Huang

Masters Theses

Konchitchki and Patatoukas (2014a) suggest that aggregate accounting earnings growth is a significant leading indicator of future nominal Gross Domestic Product (GDP) growth in the United Sates, and that earnings growth adds power to contemporaneous GDP growth in predicting future GDP growth. The future GDP growth used in their model is based on the third estimate of GDP for a given quarter, which is released by the U.S. Bureau of Economic Analysis (BEA) three months after the end of the quarter. My study is also centered on predictability of future GDP growth but it provides a useful extension of the …

Contribution Of Foreign Direct Investment To Economic Growth In Bangladesh, Mohammed Abu Rayhan

Masters Theses

Rapid industrialization is essential in Bangladesh to keep pace with its development needs. But the low rate of gross domestic savings and investment as well as low level of technology base hamper the expected industrialization process. Foreign aid and grant had been serving to bridge the gap earlier. As many developing countries are in the process of graduating from being aid-dependent economy into a trading economy, FDI has come to be viewed as a major stimulus to economic growth for these emerging economies. This paper examines the contribution of FDI to economic growth in Bangladesh over the period from 1975 …

Openness, Convergence, And Economic Growth In Asian Economies, Lih-Jen Lin

Masters Theses

Openness offers countries opportunities to trade with the outside world, and stimulates growth through easier access to new technologies and skills. In order to verify the effects of openness on economic growth in Asian economies, this study uses the ratio of foreign direct investment to GDP, and the ratio of the sum of imports and exports to GDP as proxies of openness.

This study begins with the hypothesis that opening domestic markets will have a significant positive impact on Asian economic growth, and the lower the starting level of real per capita GDP, relative to the long-term position, the faster …

The Determinants Of Agriculture Growth In China, 1978-89, Jiefei Qiu

Masters Theses

Agriculture growth in China during the first dozen years of the economic reform could be attributed to an increase in inputs, technological progress, and institutional innovation. This paper introduces a couple of measurements for technological change and institutional reform, which include the imported capital for advanced technology, the number of high school graduates for improved human capital and the size of the free market for price reform. The study examines the effects of education, foreign capital, and price reform in rural China using data for both agriculture and farming over the period of 1978-89. Descriptions are made regarding the changes …

What Can China Learn From East Asia's Economic Success?, Fang Xie

Masters Theses

East Asia has a remarkable record of high and sustained economic growth. From 1965 to 1990 the twenty-three economies of East Asia grew faster than all other regions of the world (World Bank 1993). Most of this achievement is attributable to seemingly miraculous growth in just eight economies: Japan; the "Four Tigers"--Hong Kong, the Republic of Korea, Singapore, and Taiwan; and the three newly industrializing economies (NIEs) of Southeast Asia--Indonesia, Malaysia, and Thailand. The success of these eight high performing Asian economies (HPAEs) in achieving rapid and equitable growth broadens our understanding of the range of policies that are consistent …

Poverty And Rural Policy In South Africa, Malose Hilton Ledwaba

Masters Theses

Poverty in South Africa is a rural and urban problem. It is endemic to the rural environment where the majority of the people live. It is transferred to the urban areas through labor migration.

Rural people depend on agriculture for subsistence. Apart from subsistence farming there are no employment opportunities. The choice for a rural young man is to be a subsistence farmer or a migrant laborer. The industrial sector is unable to offer a job for everyone. Thus, the rural migrant’s dream of a city job often becomes an unemployment nightmare.

I argue, therefore, that poverty can best be …

Economic Institutions And Economic Growth In South Africa, Lumkile Mondi

Masters Theses

The collapse of rapid growth in industrialized countries in the mid-1970s has suggested to scholars that Keynesian economic management is not the ultimate way to run a viable capitalist system. What has emerged from the crisis is the recognition that different capitalist countries have for long had distinctive patterns of development and alternative patterns of economic management.

One such form of economic management is neo-corporatism. The pillars of "neo-corporatism" are found in the tri-partite alliance between centralized trade unions, centralized employers’ organizations, and the state. These institutions coordinate the levels of investment, wage, and employment in the economy to ensure …