The Impact of key Macroeconomic factors on Economic Growth of Bangladesh: a VAR Co-integration Analysis

Ali, Md. Arphan; Saifullah, Md. Khaled; Kari, Fatimah

doi:10.17722/ijme.v6i1.820

Cited by 6 publications

(1 citation statement)

References 22 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…These results are in line with the findings of Alshahrani and Alsadiq (2014) and Butkiewicz and Yanikkaya (2011). Negative relation between interest rate and GDP growth supports Keynesian view, which shows that higher interest rate discourages investments that further decline economic growth (Ali, Saifullah, & Kari, 2015;Gul, Mughal, & Rahim, 2012).…”

Section: Empirical Findings Of the Studysupporting

confidence: 88%

SMEs Output and GDP Growth: A Dynamic Perspective

Mujahid

Begam

2019

Journal of Asian Business Strategy

View full text Add to dashboard Cite

In the contemporary era, the sector of SMEs has been considered essential for achieving macroeconomic objectives such as employment creation, poverty reduction and economic growth. Hence, SMEs have an ample and untapped potential to contribute in economic growth though enhancing entrepreneurial skills and indigenous technology. The contribution of SMEs sector to economic growth is thus a principle component in raising the internal efficiency of the resources. This study endeavors to find out the potential role of SME's output in GDP growth for Pakistan considering some macroeconomic variables. While using data from 1980 to 2017, ARDL bound testing approach has been used to incorporate the dynamic perspective in the study. In model estimation, the GDP growth rate has been taken as a dependent variable, whereas, output of small sale industry, unemployment rate, government expenditure, interest rate, domestic investment, foreign direct investment and finance provided by banks to private sector have been included as independent variables. The estimation findings of dynamic model confirmed the direct and significant association between output of SMEs and GDP growth in Pakistan. However; the sector still requires a policy design to overcome the problems of the sector in war-footing grounds. These policies require a pro-active strategy that can cater more growth of the economy through progress of SMEs. In this regard, the strengthening and elevation of potential output of SMEs, made in Pakistan, tentative policy plan for Industry 4.0; and the distribution of SMEs in remote areas are the relevant recommended policy initiatives.Contribution/ Originality: This study contributes to the existing literature by investigating the role of SMEs output in growth of GDP of Pakistan using the ADRL Bound Testing approach.

show abstract

Section: Empirical Findings Of the Studysupporting

confidence: 88%

SMEs Output and GDP Growth: A Dynamic Perspective

Mujahid

Begam

2019

Journal of Asian Business Strategy

View full text Add to dashboard Cite

show abstract

Effects of Transmission Mechanism of Monetary Policy Channels on Economic Growth in Ethiopia: Cointegration and Causality Analysis Approach

Bekele

2024

IJBER

View full text Add to dashboard Cite

The study aimed at investigating and analyzing factors those effects of transmission mechanism of monetary policy channels on economic growth in Ethiopia using a 36 years’ time series data. To this end, variables such as economic growth (dependent variable), and other regress variables such as real lending rate, real effective exchange rate, credit for private sector, consumer price index, trade of opens, gross capital formation, and money supply are considered. An empirical model linking the real GDP to its theoretical effects is then specified. This study had employed the co-integration and vector error correction model (VECM) analysis with impulse response and variance decomposition analysis to provide robust long run effects and short run dynamic effects on the real GDP. All variables under consideration are integrated of order one I (1) and also co-integrated. Vector Error Correction Model/VECM/ results show that real GDP was positively and significantly affected by the real effective exchange rate, money supply, gross capital formation (investment), credit for private sector, trade of openness over a period of long-run; while real leading interest rate and consumer price index (inflation) have significant negative effect. The estimate of the speed of adjustment coefficient found in this study indicates that about a 31 percent of the variation in the real GDP from its equilibrium level is corrected within a year. The study suggests that lowering the lending interest rate can encourage more private investment because it will encourage private investors to borrow more, which will increase investment in Ethiopia. Since investment is one of the factors that determine the gross domestic product, this will result in an increase in the GDP.

show abstract

Macroeconomic Risk, Uncertainty and Financial Market Development: Emerging Markets Perspective

Abaidoo

Agyapong

2023

Global Business Review

View full text Add to dashboard Cite

The study examines the effect of macroeconomic instability on financial market development among economies in the sub-region of sub-Saharan Africa (SSA) using a sample of 31 countries from 1996 to 2019. The study focuses on how composite macroeconomic risk index and uncertainty associated with key macroeconomic variables influence the pace of development of financial markets in the sub-region. Empirical estimates and analyses in this regard were performed using the two-step generalized method of moments (GMM) estimation technique. Results from the empirical estimates suggest that macroeconomic risk, inflation volatility and output growth volatility impede the development of financial markets among economies in the sub-region, holding all else constant. Further results show that improved governance and institutional quality may not be enough to assuage the negative impact of heightened macroeconomic risk and uncertainty on financial market development. Political instability, in contrast, is found to worsen the negative influence of macroeconomic risk and uncertainty on financial market development among economies in the SSA sub-region.

show abstract

The Impact of key Macroeconomic factors on Economic Growth of Bangladesh: a VAR Co-integration Analysis

Cited by 6 publications

References 22 publications

SMEs Output and GDP Growth: A Dynamic Perspective

SMEs Output and GDP Growth: A Dynamic Perspective

Effects of Transmission Mechanism of Monetary Policy Channels on Economic Growth in Ethiopia: Cointegration and Causality Analysis Approach

Macroeconomic Risk, Uncertainty and Financial Market Development: Emerging Markets Perspective

Contact Info

Product

Resources

About