Shadow Economy and Economic Growth

Hadhek, Zouhaier; Mrad, Fatma; Lafi, Mosbah; Hamida, Arafet; Mayssa, Hedhli

doi:10.55365/1923.x2021.19.25

Cited by 8 publications

(8 citation statements)

References 7 publications

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“…Model 5 shows that the interaction term was insignificant however the coefficient of trade openness improved from 1.068 as shown in Model 5 of Table 6 to a coefficient of 1.495 as shown in Model 5 of Table 7. This result is consistent with the result of Hadhek and Mrad (2015).…”

Section: Discussion Of Regression Resultssupporting

confidence: 93%

“…This explains why, without stronger institutional structures, trade openness alone may not contribute much to inclusive growth in SSA economies. Hadhek and Mrad (2015), Baliamoune-Lutz and Ndikumana (2007), and Gani and Prasad (2006) all stated that good institutional quality is an important component in maximizing a country’s benefits from international commerce.…”

Section: Analysis and Discussionmentioning

confidence: 99%

“…Income disparity, on the other hand, has risen globally in recent decades. According to Dollar and Kraay (2002), growth is beneficial to the poor (see also Dollar et al, 2013; Hadhek & Mrad, 2015). Subsequent studies have shown that not all growth benefits the poor especially when there is income inequality, low employment generation for the youth and women, and pursuant of growth in sectors that have weak linkages with the general economy.…”

Section: Introductionmentioning

confidence: 99%

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Trade Openness, Institutions, and Inclusive Growth in Sub-Saharan Africa

Agyei

Idan

2022

Sage Open

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This study assesses the moderating role of institutions in the trade openness and inclusive growth nexus in Sub-Saharan Africa (SSA). Based on the System General Method of Moment estimation technique applied to data from 39 SSA countries from 1996 to 2017, the results offer support for the assertion that institutions strengthen the positive relationship between trade openness and inclusive growth in SSA. Economies in SSA should put in policies to strengthen their institutions to improve the positive link between trade openness and inclusive growth.

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Section: Discussion Of Regression Resultssupporting

confidence: 93%

Section: Analysis and Discussionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

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Trade Openness, Institutions, and Inclusive Growth in Sub-Saharan Africa

Agyei

Idan

2022

Sage Open

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“…The study, furthermore, showed that external debt had negative effects on economic growth in Nigeria. Hadhek and Mrad (2014) used dynamic panel data to carry out two empirical tests on nineteen developing countries to explore debt effects on economic growth and the role of investment in economic growth. The study covered the period of 1990-2011.…”

Section: Literature Reviewmentioning

confidence: 99%

External Debt and Economic Growth in Niger: a Vector Autoregression and Variance Decomposition Analysis

Oumarou¹

2021

Economics and Business

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In the quest for quick economic development, many Sub Saharan African (SSA) countries borrow money to finance their budget deficits and vital infrastructure. Niger has seen its external debt increase year after year without really reaching economic development. This study uses a vector autoregressive (VAR) model to investigate the relation linking external debt and economic growth in Niger and variance decomposition forecast to verify if there is any significant impact from shocks for a period of 5 years in the future. The study utilises time series yearly data provided by the World Bank for the period covering 1970–2019. The empirical results reveal no long-run relationship between economic growth, external debt and government spending in Niger. The results also indicated that, on average ceteris paribus, the past realisation of economic growth is related to an increase of 97.75 % in economic growth, while the past realisation of external debt and government spending is associated with an increase of 83.77 % and 79.70 % in external debt and government spending, respectively. The results furthermore show that economic growth has a statistically significant causal effect on government spending in the short term. One percentage increase in economic growth accounts for an increase of 35.28 % in government spending on average ceteris paribus. The variance decomposition forecast reveals that economic growth has a significant influence on predicting government spending in the future.

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“…Basically, it has been observed that domestic savings, if properly mobilized, can encourage an improvement in the economic activities through investment. However, one of the major economic problems of many developing countries, Nigeria inclusive, is inadequate savings which has overcrowded debt structure became an obstacle to development and full refund almost hypothetical (Hadhek and Mrad, 2014). Although external debt may be used to stimulate the economy but in most cases, a reasonable proportion of public expenditure and foreign exchange earnings are absorbed by debt servicing and repayment with heavy opportunity costs (Adegboyega, 2018).…”

Section: Conceptual Reviewmentioning

confidence: 99%

Debt Service Payments and Economic Growth in Nigeria

ADEGBOYEGA¹

2021

JOB

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The problems of accumulating capital for the provision of basic infrastructures in the less developed countries (LDCs), Nigeria in particular, have been the challenges deterring their consistent growth. This is also compounded by the accumulation of debt service payment areas which constitute one of the serious obstacles to the inflow of external resources into the economy. From the foregoing, there is need to examine the impact of debt service payments on economic growth in Nigeria. The study made use of data collected from Central Bank of Nigeria (CBN) and World Bank Database from 1981 to 2019 using ARDL regression method of analysis. The results showed that debt service payment (TDS_GNI), exchange rate (EXR), external debt (EXTD_GNI) and foreign direct investment (FDI_GDP) have positive relationship with economic growth (GR) in Nigeria. All these variables except exchange rate have significant impact on economic growth within the period under consideration. The ECM coefficient of -0.205 indicates that any deviation from the long-term equilibrium between variables will be corrected by about 20.5% each year. Based on the findings the study suggests that debt service obligation should not be allowed to rise more than foreign exchange earnings and that the loan contracted should be invested in profitable venture, which will generate a reasonable amount of money for debt repayment. The study recommended amongst others the needs for the country to develop a framework and strategy for closing its resource gap in order to achieve the objective of halving poverty by 2030.

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Shadow Economy and Economic Growth

Cited by 8 publications

References 7 publications

Trade Openness, Institutions, and Inclusive Growth in Sub-Saharan Africa

Trade Openness, Institutions, and Inclusive Growth in Sub-Saharan Africa

External Debt and Economic Growth in Niger: a Vector Autoregression and Variance Decomposition Analysis

Debt Service Payments and Economic Growth in Nigeria

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