Export Growth and Domestic Performance

Pereira, Alfredo Marvão; Xu, Zhang

doi:10.1111/1467-9396.00205

Cited by 35 publications

(25 citation statements)

References 30 publications

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“…The use of this methodology predicts the cumulative effects taking into account the dynamic response among credit market development and the other examined variables [10,13] . In order to test the long-run relationships, the following multivariate model is to be estimated:…”

Section: Data and Specification Modelmentioning

confidence: 99%

Credit Market Development and Economic Growth

Vazakidis¹,

Adamopoulos²

2009

American Journal of Economics and Business Administration

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Problem statement:This study investigated the relationship between credit market development and economic growth for Italy for the period 1965-2007 using a Vector Error Correction Model (VECM). Questions were raised whether economic growth spurs credit market development taking into account the negative effect of inflation rate on credit market development. This study aimed to investigate the short-run and the long-run relationship between bank lending, gross domestic product and inflation rate applying the Johansen cointegration analysis. Approach: For this objectives unit root tests were carried out according to Dickey-Fuller (1979) and Johansen cointegration analysis was applied to examine whether the variables are cointegrated of the same order taking into account the maximum eigenvalues and trace statistics tests. Finally, a vector error correction model was selected to investigate the long-run relationship between economic growth and credit market development. Results: A short-run increase of economic growth per 1% induces an increase of bank lending 0.4% in Italy, while an increase of inflation rate per 1% induces a relative decrease of bank lending per 0.5% in Italy. The estimated coefficient of error correction term is statistically significant and has a negative sign, which confirms that there is not any a problem in the long-run equilibrium between the examined variables. Conclusions: The empirical results indicated that economic growth has a positive effect on credit market development, while inflation rate has a negative effect. Bank development is determined by the size of bank lending directed to private sector at times of low inflation rates leading to higher economic growth rates.

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Section: Data and Specification Modelmentioning

confidence: 99%

Credit Market Development and Economic Growth

Vazakidis¹,

Adamopoulos²

2009

American Journal of Economics and Business Administration

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“…The use of this methodology predicts the cumulative effects taking into account the dynamic response among economic growth and the other examined variables [10,13] . In order to test the causal relationships, the following multivariate model is to be estimated:…”

Section: Data and Specification Modelmentioning

confidence: 99%

Financial Development and Economic Growth An Empirical Analysis for Greece

Vazakidis¹,

Adamopoulos²

2009

American J. of Applied Sciences

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Problem statement:This study investigated the causal relationship between financial development and economic growth for Greece for the period 1978-2007 using a Vector Error Correction Model (VECM). Questions were raised whether financial development causes economic growth or reversely taking into account the positive effect of industrial production index. Financial market development is estimated by the effect of credit market development and stock market development on economic growth. The objective of this study was to examine the causal relationships between these variables using Granger causality tests based on a Vector Error Correction Model (VECM). Approach: To achieve this objective unit root tests were carried out for all time series data in their levels and their first differences according to Dickey-Fuller (1979). Johansen co-integration analysis was applied to examine whether the variables are co-integrated of the same order taking into account the maximum eigenvalues and trace statistics tests. A vector error correction model was selected to investigate the long-run relationship between financial development and economic growth. Finally, Granger causality test was applied in order to find the direction of causality between the examined variables of the estimated model. Results: A short-run increase of stock market index per 1% leaded to an increase of economic growth per 0.06% in Greece, also an increase of bank lending per 1% leaded to an increase of economic growth per 0.14% in Greece, while an increase of productivity per 1% leaded to an increase of economic growth per 0.32% in Greece. The estimated coefficient of error correction term found statistically significant with a negative sign, which confirmed that there was not any problem in the long-run equilibrium between the examined variables. The results of Granger causality tests indicated that economic growth causes stock market development and industrial production index, while industrial production index causes credit market development for Greece. Conclusions: Therefore, it can be inferred that economic growth has a positive effect on stock market development and credit market development through industrial production growth in Greece.

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“…Economic theory suggests that reasonable levels of borrowing by a developing country are likely to enhance its economic gro wth [19]. When economic growth is enhanced (at least more than 5% growth rate) the economy's poverty situation is likely to be affected positively [3].…”

Section: Introductionmentioning

confidence: 99%

Public Debt and Economic Growth in Nigeria: Evidence from Granger Causality

Egbetunde¹

2012

ECONOMICS

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The paper examined the causal nexus between public debt and economic growth in Nigeria between 1970 and 2010 using a Vector Autoregressive (VAR). The variab les used in the study were tested for stationarity using the Augmented Dickey Fuller and Philip Perron test. The result showed that the variables are stationary at first differencing. Co-integration test was also performed and the result revealed the presence of co-integration between public debt and economic growth. The co-integration results show that public debt and economic growth have long run relationship. The findings of the VA R model revealed that there is a bi-directional causality between public debt and economic gro wth in Nigeria. The paper concluded that public debt and economic growth have long run relationship, and they are positively related if the government is sincere with the loan obtained and use it for the development of the economy rather than channel the funds to their personal benefit.

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Export Growth and Domestic Performance

Cited by 35 publications

References 30 publications

Credit Market Development and Economic Growth

Credit Market Development and Economic Growth

Financial Development and Economic Growth An Empirical Analysis for Greece

Public Debt and Economic Growth in Nigeria: Evidence from Granger Causality

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