Contents of the volume

2019, Volume 72 - Issue 1

ISSN: 2499-8265
RSS feed citation: At RePEc
Publication date: 01 February 2019

STUDY ON THE CAUSALITY NEXUS BETWEEN MACRO-ECONOMIC VARIABLES USING VECTOR ERROR CORRECTION MODELING

Shailender Singh, Hawati Janor

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REMITTANCES AND FOREIGN AIDS: SUBSTITUTES OR COMPLEMENTS IN THE ECONOMICS GROWTH OF DEVELOPING COUNTRIES?

Temitope Laniran, Victoria A. Olakunle

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FOREIGN DIRECT INVESTMENTS, EXPORTS AND ECONOMIC GROWTH IN SIDS: EVIDENCE FROM SANTA LUCIA

Roger Hosein, Regan Deonanan, Kimbert Evans

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TIME SERIES ANALYSIS USING ARIMA MODELS: AN APPROACH TO FORECASTING HEALTH EXPENDITURES IN USA

Nicholaos Dritsakis, Paraskevi Klazoglou

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THE DEMAND FOR PUBLIC AND PRIVATE MEDICAL CARE SERVICES: EVIDENCE FROM KUWAIT

Nadeem A. Burney, Nadia Al-Musallam, Mohammad Alenezi, Salwa Hamada

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Genoa Chamber of Commerce
Economia Internazionale / International Economics

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Corresponding author

Shailender SINGH, Department of Commerce, SRM University, Amaravati, India

Co-authors

Hawati JANOR, Faculty of Economics and Management, Universiti Kebangsaan Malaysia, Malaysia

Study on the Causality Nexus between Macro-Economic Variables using Vector Error Correction Modeling

Pages

1-22

Abstract

The reason behind the execution of this research is to investigate the dynamic co-integration association of economic growth with its selected four determinants which include foreign direct investment (FDI), consumer price index (CPI), net export (NE) and personal remittances (PR) in Thailand, a developing economy. The paper examines empirically the association of economic growth with its determinants by employing Johansen Co-Integration Test, Granger Causality Test and Variance Decomposition between time-period of 1980-2013. Empirical results reveal the presence of co-integration among the considered variables whereby it is noticed that economic growth of Thailand is influenced by personal remittances and net exports. The Granger Causality Test supports unidirectional causality from LNE to LGDP (LNE→LGDP) and from LCPI to LNE (LCPI→LNE). Furthermore the study evidences feedback causality among LPR and LGDP. The variance decomposition results recommend that unsettling influences starting from LGDP incur most prominent variability of 69 percent followed by 31 percent of the variation explained by the remaining four variables.

JEL classification

C32, C180, F43

Keywords

Gross Domestic Product, ARDL, Granger Causality, Net Export, VECM

Index

  1. Introduction
  2. Literature review
  3. Research framework
  4. Results and findings
  5. Conclusion and recommendation

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