The Determinant of Economic Growth Evidence from Benin: Time Series Analysis from 1970 to 2017

Abstract

Financial development is part of the private sector development strategy to stimulate economic growth and reduce poverty. So, the paper attempts to find out the determinant of economy growth and the explanatory variables, such as, the foreign direct investment, government expenditure, consumer price index and trade openness in Benin. Using time series as the econometric model and the data during 1970 and 2017 for the study. In addition, the technique that implemented to estimate the model was Ordinary Least Square. The result showed that the foreign direct investment and consumer index price have significantly and positively impact the Benin's economy growth but the trade openness and the government expenditure have significantly and negatively impacted the Benin's economy growth. I suggest that the government must invest more in infrastructure to attract more foreign direct investment. In term of trade Benin's policymaker should promote the local products and export to the world to adjust the balance between the import and export.

Main Factors of Lack of Economic Development in Afghanistan

“…Some people realize them as one concept, but the truth is economic development is quantitative, and in simple words, it is the increase of national products of a country compared with the amount of last year. According to Simon Cozintes, economic development is the ongoing and long period of impure national product of a country(Am Marcel, 2019). Economic expansion is qualitative and is economic development with basic changes in the economy and an increase of productive potentials such as physical, human, and social resources.…”

Neural network modeling of the economic and social development trajectory transformation due to quarantine restrictions during COVID-19

“…The articles of scientists from different countries deal with the impact of various crises, mainly of economic nature, and its quantitative and parametric analysis, in their works. The comparison of socio-economic development of individual regions, which are differently susceptible to such crises and form different resulting actions on the directed influence, is of particular importance (Bazyliuk et al, 2019;Kryshtanovych et al, 2020;Haller, 2020;Mikhaylova et al, 2019;Afanasyev et al, 2020;Dinu et al, 2020;Iacobuta et al, 2019;Semenenko et al, 2019;Harust et al, 2019;Vysochyna et al, 2020;Mikhnevych et al, 2020 Deyneka et al, 2019;Medani, 2020;Balas and Kaya, 2019;Yelnikova and Miskiewicz, 2020;Dave, 2019;Marcel, 2019;Hashim et al, 2018;Kuzmenko et al, 2020;Djalilov et al, 2015). Attention is paid to the calculation of these impact limits in different activities (Mach, 2019;Moyo, 2020;Sawangchai, 2020;Przytuła et al, 2020;Raychev et al, 2020;Kowo et al, 2020;Jafarzadeh and He, 2019;Greco, 2018;Yiu et al, 2020;Dutta et al, 2020;Lopez and Alcaide, 2020;Kouassi, 2018) or in different countries and in the world as a whole (Sułkowski, 2020;Nagy and Kiss, 2018;Zolkover and Renkas, 2020).…”

Impact of the Foreign Direct Investment on Economic growth in the Republic of Benin

“…The previous study shows that the impact of the FDI on economic growth can be positive, negative or significant; it is depending on the economic through the infrastructure (because of the effort the government according the public spending). For instance, (Marcel, 2019) investigated the determinant of economic growth in Benin. The work covered the period 1970-2017 using an annual data from the World Bank indicators.…”