Economics and Administrative Sciences

This paper focuses on the impact of Foreign Aid on Economic Growth for the 5 poorest economies of the world (Niger, Congo, Burundi, Malawi, and the Central African Republic). Employing endogenous growth model and annual time series data from 1986 – 2015, we examine this growing nexus using a robust model specification, hence testing both the long run and short-run relationship between Foreign Aid and economic growth. The ARDL Bound test of Co-Integration (long-run relationship) and an Error Correction Model is used to test for short-run relationship alongside the speed of adjustment back to the long-run equilibrium after a short run shock. The result shows a positive and significant long-run relationship for Niger and Malawi, while other countries displayed no long-run relationship. Interestingly, the short-run relationship was found only in Congo. The derived conclusion from this paper is that the government has to re-evaluate the sectorial allocation of foreign Aid received to ensure higher efficiency and a positive effect on the economic growth of these countries.
Keywords: Foreign Aids; Economic Growth; ARDL Model; ECM.

The impact of Official Development Assistance (ODA) which is geared towards economic growth of the 5 poorest economies of the world (Niger, Congo, Burundi, Malawi, and the Central African Republic) was analysed. Employing a well-structured growth model and yearly data from 1986-2015, we examine this growing nexus using a robust model specification, hence testing both the long and short run relationship between economic growth and ODA. The ARDL long-run relationship and an Error Correction Model (ECM) was used to test for the relationship alongside the rate at which the variables returns back to the long-run equilibrium following a shock in the short run. There exist a significant positive association for Niger as well as Malawi in the long run, while other countries displayed no long-run relationship. Interestingly, the relationship in the short run was found only in Congo. The derived conclusion from this paper is that the government have to re-evaluate the sectoral allocation of foreign Aid received to ensure higher efficiency and a prospective economic growth and development of these countries. Öz: Bu çalışmada Resmi Kalkınma Yardımının (RKY), dünyanın en düşük gelirli 5 ekonomisinin (Nijer, Kongo, Burundi, Malavi ve Orta Afrika Cumhuriyeti) ekonomik büyüme üzerindeki etkisi analiz edildi. Yapılandırılmış bir büyüme modeli ve 1986-2015 yıllık verileri kullanarak büyüyen ilişki sağlam bir model spesifikasyonu ile incelenecektir. Bu nedenle çalışma hem ekonomik büyüme hem de RKY arasındaki uzun ve kısa vadedeki ilişkiyi test etmektedir. ARDL uzun süreli ilişkiyi ölçmede ve aynı zamanda Hata Düzeltme Modeli (ECM) ile kısa vadede bir şokun ardından değişkenlerin uzun dönemli dengeye geri döndüğü oranı test etmek için kullanılmıştır. Uzun vadede Nijer ve Malavi için önemli bir pozitif ilişki bulunmuştur, diğer ülkelerde uzun süreli ilişki görülmemiştir. İlginç bir şekilde, kısa vadede ilişki sadece Kongo'da bulundu. Çalışmadan elde edilen sonuca göre, hükümetler daha yüksek verimlilik ve ileriye dönük ekonomik büyüme ve kalkınmayı sağlamak için yabancı yardımların sektörel dağılımını yeniden değerlendirmelidirler.

This paper tends to establish the short and long run dynamics between stock market and GDP growth in Nigeria utilizing yearly data spanning between 1989 and 2017. The paper deployed the ARDL, FMOLS, DOLS, Toda Yamamoto causality and the variance decomposition techniques to verify these dynamics. The ARDL Bounds test reveals evidence of cointegration in the long run among the variables. The ARDL estimate reveals market capitalization of listed companies affects economic growth positively in the short and long run. Also, stocks market turnover ratio positively impacts economic growth while stock market total value positively affects GDP in the short run. The result of the Toda Yamamoto causality revealed one-way causality from Stocks market turnover ratio to economic growth and from Stock market total value traded to economic growth. The variance decomposition revealed the strength of causality among the variables for a relatively longer period. Based on these findings, recommendations were put forward.

The present study aims to explore the long-run and causal effect of financial development and renewable energy consumption on environmental sustainability while controlling technological innovation and economic growth within the global framework. In line with the aim of the study, the fully modified OLS (FMOLS), dynamic OLS (DOLS), canonical cointegrating regression (CCR), Bayer and Hanck cointegration, and frequency-domain causality tests are employed. Empirical evidence confirms the existence of a long-run linkage among the variables. The present study also finds that in the long run, global financial development and global renewable energy consumption have a long-run significant positive effect on environmental sustainability, while economic growth increases carbon emission flaring around the world. Within the global framework, the study, therefore, recommends that in order to increase environmental quality, global policy-makers should further consider the roles of renewable energy and financial development by implementing reform energy policies in both developed and developing countries.