Aims: This study examined the short-run and long-run dynamic relationship between economic growth and environmental pollution in Brunei. We adopted Auto Regressive Distributed Lag (ARDL) model to scrutinize the existence of the Environmental Kuznets Curve (EKC) among the studying variables by using time series data cover the period of 1974 to 2014. Methodology: The ARDL bound test revealed the existence of a long-run relationship among the integrated variables when CO2 chosen as a dependent variable. Results: The results support the existences of EKC hypotheses in the long-run whereas in the shortrun an inverted U-shaped curve was not confirmed between GDP and CO2 in Brunei. The results of Granger causality based on VECM analysis have shown unidirectional causality runs from economic growth to CO2 in the short-run. Further analysis through stability test indicates the coefficients in the model are stable and do not suffer from structural break within the time taken in the study. Conclusion: Bruneian government should continue to support global environmental preservation policies to reduce the emission of harmful gases into the atmosphere, applying a modern technology that is not harming to the environment and consumes less energy to mitigate the adverse impact of CO2 and other greenhouse gases in the country.
Issa Moh’d Hemed
Zanzibar University (ZU), P.O.Box 2440, Zanzibar, Tanzania.
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The objective of this chapter is to
identify the effect of political instability on investment and economic growth.
By using a dynamic balanced panel data model applied on annual data from 11
countries from the Middle East and North Africa (MENA) region over the period
of 2000 to 2009. The political instability’ effect on the contribution of
investment to economic growth has been the subject of a second empirical study
using a simultaneous equation model conducted on a sample of 33 countries over
the period 2000-2015.The main outcomes drawn by these two empirical tests prove
that there is no effect of political instability on investment and economic
growth and a negative interaction between political instability and investment.
This finding confirms the idea that the importance of political institutions
lies in the preparation of good economic institutions. Thus, political institutions
indirectly influence economic performance.
Higher Institut of Management (ISG) of Gabès, Tunisia.
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External debts can have either positive or negative effects on the economic growth of country’s economy. If external debts are used for development expenditure then the country may benefit because development expenditure like infrastructure may have a multiplier effect on boosting economic growth. This paper examines the impact of public debt on economic growth in Tanzania for the period 1970 to 2015. The study utilized co-integration and Vector Error Correction Mechanism (VECM) Approach to test the relationship between public debt and economic growth and granger causality test to examine the causal relationship between variable. The unit root tests showed that all variables were integrated after taking the first difference, the Johansen co-integration result showed that the variables were co-integrated. The VECM estimate showed that there is a negative relationship between public debt and economic growth in Tanzania over the study period. In addition, granger causality test revealed that there is no causal relationship between public debt and economic growth. Based on these findings, this study recommended that Government and policy makers should stop the accumulation of external debt stock overtime and prevent concealing of the motive behind external debt; external debts should be used only for productive investment of highest priorities that would help in yielding returns for economic reasons (productive purposes) and not for social or political reasons.
Dr. Salama Yusuf
Department of Finance, Faculty of Business Administration, Zanzibar University, Tanzania.
Aziza Omar Said
Ministry of Trade and Industry, Zanzibar, Tanzania.
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View Volume: https://doi.org/10.9734/bpi/eidet/v1
HIV/AIDS is seen as not only the leading cause of death in SSA region but a major public health challenge. Currently, 13% of total population workforce in the region lives with the epidemic; the above means that one in every ten adults in the region is HIV/AIDS positive. Regrettably so, there is a link between the epidemic prevalence and poverty. As a result, the study empirically examined the impact of HIV/AIDS burden on economic growth in selected Sub-Saharan Africa (SSA) countries: Evidence from a dynamic system GMM estimates utilizing cross-country series of 18 countries in the region for the period of 1986-2015. The choice of the selected 18 SSA countries was driven by factors such as degree of prevalence of the epidemic, level of economic growth and regional affiliations resulting in four major regional blocs: SADC, ECOWAS, CEMAC and COMESA. Expectedly, the study employed a two-step dynamic Blundell-Bond system GMM panel estimation technique alongside with the Diebold and Yilmaz (2012) index variance decomposition approach. This was done to achieve conditional convergence in the growth equation and also to disaggregate the prevalence shock due to the epidemic burden. Series such as output per capita, output per capita growth, HIV/AIDS prevalence, public health expenditure, total investment, number of school enrollment are amongst others used in the study. Several pre-and post-diagnostics were accordingly carried out amongst which are Windmeijer (2005) finite sample correction for standard errors, stationarity test while controlling for heterogeinety, endogeneity or omitted variable biases, Hansen J-statistic for identification, Diff-in-Hansen test for validity of the additional moment restrictions, Breusch-Pagan Lagrange multiplier (LM) and Hausman tests for acceptability of the RE model etc. The findings from the study revealed that HIV/AIDS prevalence, not only have impacted negatively on human capital development and output growth in the region but has also currently been transmitting burden amongst member states thereby rendering the entire region vulnerable; particularly the low income countries. It further found that prevalence rate and income level of a country determines the level of her vulnerability to the epidemic burden in the region. The study therefore recommends that since members of SADC sub-region with very high prevalence rates are seen as powerful vector of contagion; therefore, a good understanding of cross-border epidemic burden spillovers on growth within the region is essential for policy coordination in the areas of preventive measures (reducing morbidity and mortality), improved capital inflow for inclusive growth ceteris paribus. Finally, it was recommended that the region should drive growth process as a unit.
Diyoke, Kenneth Onyeka
Department of Economics, Faculty of Arts and Social Sciences, Nile University of Nigeria, Abuja- Nigeria.
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View Volume: https://doi.org/10.9734/bpi/mono/978-93-89562-58-3
This chapter evaluates different approaches and potential solutions for the seemingly intractable stagnation or decline of a country or region. It focuses on economic development in a resource-based economy that may have structural problems due to a lack of diversification. Infrastructure, strategic debt, and innovation are evaluated, with a goal of developing a balanced approach that strategically leverages existing infrastructure for a diversified economy and sustainable growth for resource-based economies. It includes expanding financing opportunities in these countries with a combination of infrastructure policies and energy technologies and capturing the opportunities using supply chain technologies. The goals are to avoid both “debt traps” and “Dutch Disease” by leveraging existing infrastructure within a plan that incorporates supply chain management the prudent use of available financing and strategic partnership, such as China’s Belt and Road Initiative and Saudi Arabia’s Vision 2030. Finally, the chapter contains an analysis of Argentina’s economic problems explains how a current plan to build infrastructure and to develop innovative technology could provide a foundation for renewed economic growth and human capital development.
Texas A & M
University Texarkana, USA.
Larry R. Davis
Texas A & M
University Texarkana, USA.
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View Volume: https://doi.org/10.9734/bpi/pass/v3