Following Solow's (2001) recent advice, this paper takes productivity as the left-hand-side variable and offers a cross-country analysis of its determinants. The analysis follows the two-stage methodology, the first of which is devoted to obtaining productivity estimates, and the second stage is...

This paper examines causalities among foreign direct investment (FDI), economic growth (GTH), and financial development proxied by both equity market size (EQM) and bank credit to private sectors (BANK). We use a structural cointegration model with a vector error correction (VEC) mechanism to...

This paper uses Johansen’s co-integration analysis and a vector error-correction model to investigate the relationship between economic growth, export growth, export instability and gross fixed capital formation (investment) in India during the period 1971- 2005. The empirical results suggest...

In this paper we examine the causal relationship between electricity consumption, exports and economic growth in the DRC, using the newly developed ARDL-bounds testing approach. In order to account for the omission-of-variable bias, the study incorporates exports as an intermittent variable...

The paper examines whether energy use drives economic growth or vice versa in the Indian context during 1970–71 to 2004–05. Utilizing Granger causality test, the study suggests that it is the economic growth that fuels more demand for both crude oil and electricity consumption and it is the...

This paper uses annual data for the period 1970-2006 in order to estimate and investigate the evolution of the Mexican informal economy. In order to do so, we model the informal economy as a latent variable and try to explain it through relationships between possible cause and indicator...

Empirical evidence supporting the export-led growth (ELG) hypothesis has been mixed and inconclusive. Many previous studies may have been misspecified since they tested the ELG hypothesis using bivariate models. Other studies used cointegration and error correction models in a multivariate...

This paper examines the nature and direction of the relationship between education expenditure as a proxy for human capital and economic growth in the six GCC economies using time-series data for the period 1977-2004. The analysis employs a Granger-causality test within an error-correction...

This paper investigates the role of economic transformation in the form of increased manufacturing share in aggregate output in accelerating growth and reducing growth volatility in Africa. Using cross-section time series data from 50 African countries, the paper examines the key determinants of...

Using growth accounting framework and panel data analysis, while accounting for dynamics and endogeneity issues in growth modelling, this paper analyses the sources of growth in selected COMESA member countries. The growth accounting suggests a moderate level of TFP and that the contribution of...