Authors:Ling-Chu Lee, Pin-Hua Lin, Yun-Wen Chuang, and Yi-Yang Lee
-Fuller (ADF) test and Grangercausality test were used to consider the problem of econometrics.
Though the correlation between research and economic growth is well established, there has been a lack of research into the causality in this relationship
Soukhakian, B. (2007): Financial Development, Trade Openness and Economic Growth in Japan: Evidence from GrangerCausality Tests. International Journal of Economic Perspectives , 1(3): 118–127.
Tourism-Led Growth (TLG) hypothesis results are inconclusive for Mediterranean countries in the relevant literature. This study contributes to the literature by employing the bounds test for co-integration and Granger causality tests to investigate level relationship and the direction of causality between international tourism and economic growth in the case of Malta. Results reveal that a long-run equilibrium relationship exists between international tourism and economic growth in the case of Malta. On the other hand, Granger causality test results suggest that both the Tourism-Led Growth and output-driven tourism hypotheses can be inferred for Malta since there is bidirectional causation between international tourism and economic growth.
The paper investigates the relationship among macroeconomic variables for a transition country: Hungary. The purpose of this paper is to measure the dynamic interrelationship among macroeconomic variables such as money supply, output, interest rates, inflation and exchange rates. For the empirical analysis of this investigation, quarterly data have been used for the period from 1980 to 2000, and the Johansen multivariate cointegration technique and the Granger causality tests have been applied. The results provide evidence of the existence of important causal relationships between variables that describe macroeconomic activity in Hungary.
This paper reports the results of an econometric examination on the links between labour productivity and output growth for 22 countries (for which long-term data are available). It turns out that, generally, labour productivity does not “cause” output. In more cases, the causation seems to be running in the opposite direction: from output to productivity. This finding, though inconsistent with the “mainstream” ideas on the sources of long-term economic growth, is reminiscent of the classical Kaldor-Verdoorn Law. The progressing slowdown in output growth on the global level, initiated around the mid-1970s (when the process of discarding the earlier economic policy paradigms set in), may have been mirrored by the progressing slowdown in productivity growth (and that despite the hardly disputable acceleration of technological progress).
I seek to investigate the relationship, if exits, between foreign bank penetration (FBP) and the determinants of bank performance, namely domestic bank assets (DB), domestic credit (CREDIT), and banking profitability (PRO) in Turkey using quarterly data from 1994Q1 to 2009Q4, while controlling for GDP and the event of the 2001 financial crisis. Using the Granger causality, impulse response function and variance decomposition, the short run dynamics are examined. The outcome of the Granger causality test indicates that there is unilateral causality, which runs from domestic bank assets to FBP at the 10% level. Moreover, I also find feedback causality between FBP and CREDIT at the 5% level. By employing impulse response functions, my findings reveal that rising foreign bank assets in Turkey tend to increase domestic bank assets and credit availability in short run, and vice versa. Surprisingly, no significant impact of FBP on profitability in the banking sector is observed.