Domestic Debt and Economic Growth Sustainability Nexus: An Empirical Analysis of Pakistan Economy

Ali, Saqib

doi:10.35484/pssr.2022(6-ii)30

Cited by 22 publications

(31 citation statements)

References 4 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…Macroeconomic instability (M) and structural reform (B) are highly significant at the 1% level with the expected signs. The negative sign of the aggregate macroeconomic instability coefficient supports the argument that an economy with the desired degree of macroeconomic stability would provide incentives for the most productive destination of inputs and enhance the profitability of investments at reasonable rates of risk, which is consistent with the finding of Ali and Rehman (2015), Haghighi et al (2012) and Jannils (2021).…”

Section: Resultssupporting

confidence: 77%

From revolutions to institutions: the experience of Arab reform

Abdelbary

2023

IMEFM

View full text Add to dashboard Cite

Purpose The purpose of this study is to outline the reasons for the 2011 Arab Spring and why the Arab states failed to achieve sustainability and inclusive growth over the past three decades. Design/methodology/approach This study used the augmented growth model framework derived from a production function and a dynamic panel LSDCV estimation, which incorporates aggregated economic and political reform indicators generated by principal component analysis. The empirical analysis is a comparative assessment of the Arab region as a whole and the Gulf countries and emerging Arab countries. This study is based on several panel data models for the Arab region’s reform programmes from 1995 to 2018. Findings The absence of robust economic and institutional reforms was the main reason for the uprising. Structural reforms in Gulf countries have been insufficient and more difficult to address than macroeconomic stability. By contrast, Arab emerging economies have achieved strong progress in structural reform but with weak progress in economic stability. Critically, governance indicator reforms enhance growth, with different items of governance based on the type of each group of countries. The results of this study confirm that reform is simultaneously political, social and economical. Practical implications Economic reform should not be seen in a vacuum or in isolation from the political and social choices that society makes. Looking forward, the Arab reform agenda must address critical governance issues that hinder the effectiveness of reform policies. Originality/value Theoretically, this study reappraises governance’s role in economic growth using a unified mathematical model. Methodologically, this study analyses economic, social and political reform components in the Arab region using econometric analysis. Empirically, this study investigates regional socioeconomic reform programmes. Existing studies have failed to recognise the economic and institutional policy reform patterns in the Arab world.

show abstract

Section: Resultssupporting

confidence: 77%

From revolutions to institutions: the experience of Arab reform

Abdelbary

2023

IMEFM

View full text Add to dashboard Cite

show abstract

“…Under this method, typical Granger causality tests for every panel is to be calculated and then estimates a Z bar statistic from the mediocre. Since there are many missing data in present dataset, this study employed the first method to inspect the Granger causality test as suggested by Ali and Rehman (2015). Arguing similar to Ali and Rehman (2015), author apply the Granger causality test approach assuming all cross-sections have the same coefficients and treating the panel an enormous arranged dataset.…”

Section: Empirical Results and Their Discussionmentioning

confidence: 99%

“…Authors stated that chronic macroeconomic volatility appears to be a significant barrier to public investment, particularly for its infrastructure component and thus hinders economic growth process. Analyzing panel data of 1980-2012, Ali and Rehman (2015) found a casual relation between macroeconomic instability and economic development. Authors argued that countries need to maintain their macroeconomic environment stable for achieving expected level of sustainable economic growth.…”

Section: Existing Empirical Studiesmentioning

confidence: 99%

Does macroeconomic stability promote economic growth? Some econometric evidence from SAARC countries

Siddik

2023

AJEB

View full text Add to dashboard Cite

PurposeThe main purpose of this research is to examine the influence of macroeconomic stability on economic growth of SAARC (South Asian Association for Regional Cooperation) countries.Design/methodology/approachUsing panel data of 1991–2020, fixed effect regression analysis, pooled ordinary least squares and generalized method of moments techniques have been conducted to demonstrate whether macroeconomic stability contributes to economic growth. Moreover, cross-sectional dependency test, unit root test, correlation analysis and granger causality tests have been run.FindingsRobust findings indicate that inflation has negative impacts on economic growth which indicates that lower level of macroeconomic instability promotes countries’ economic growth. This study also observed that foreign direct investment, domestic credit delivered to private sector, currency exchange and institutional difference across countries are affirmatively connected while labor force is negatively associated with economic growth.Originality/valueEmpirical findings of this study signify that macroeconomic stability have significant effects on economic growth. Findings of this study have superior contributions for the policy makers to achieve sustainable economic growth.

show abstract

“…Stability or fluctuations among macroeconomic indicators or variables have been found to play an influential role in the development of economies around the globe (refer to Bleaney, 1996; Sanchez-Robles, 1998; Haghighi et al ., 2012; Ali and Rehman, 2015; Liew et al ., 2018). The current study delves into the subject matter by assessing the impact of inflation uncertainty, macroeconomic risk and other key variables on financial institutions’ efficiency among SSA economies.…”

Section: Discussionmentioning

confidence: 99%

Inflation uncertainty, macroeconomic instability and the efficiency of financial institutions

Abaidoo

Agyapong

2023

JED

View full text Add to dashboard Cite

PurposeThe study examines the effect of macroeconomic risk, inflation uncertainty and instability associated with key macroeconomic indicators on the efficiency of financial institutions among economies in sub-Saharan Africa (SSA).Design/methodology/approachData for the empirical inquiry were compiled from 35 SSA economies from 1996 to 2019. The empirical estimates were carried out using pooled ordinary least squares (POLS) with Driscoll and Kraay’s (1998) standard errors.FindingsReported empirical estimates show that macroeconomic risk and exchange rate volatility constrain the efficiency of financial institutions. Further results suggest that inflation uncertainty has a significant influence on the efficiency of financial institutions among economies in the subregion. Additionally, reviewed empirical estimates show that institutional quality positively moderates the nexus between inflation uncertainty and financial institution efficiency. At the same time, political instability is found to worsen the adverse effect of macroeconomic risk on the efficiency of financial institutions.Practical implicationsFor policymakers and governments, improved institutional structures are recommended to ensure the operational efficiency of financial institutions, especially during an inflationary period. For decision-makers among financial institutions, the study recommends policies that have the potential to make their institutions less vulnerable to macroeconomic risk and exchange rate fluctuations.Originality/valueThe approach adopted in this study differs significantly from related studies in that the study examines and reviews interactions and relationships not readily found in the reviewed literature.

show abstract

Domestic Debt and Economic Growth Sustainability Nexus: An Empirical Analysis of Pakistan Economy

Cited by 22 publications

References 4 publications

From revolutions to institutions: the experience of Arab reform

From revolutions to institutions: the experience of Arab reform

Does macroeconomic stability promote economic growth? Some econometric evidence from SAARC countries

Inflation uncertainty, macroeconomic instability and the efficiency of financial institutions

Contact Info

Product

Resources

About