Sample paper: Literature Review – Introduction to econometrics
Impact of globalization on economic growth and poverty reduction
An econometric analysis study conducted by Shabab & Islam (2018) aimed to investigate the impact of globalization on economic growth and poverty reduction. In the last three years Bangladesh has shown an improvement in its economic growth rate due to globalization. This paper showed that that globalization in Bangladesh has positive impact to reduction of poverty mainly in rural areas and also the difference between the rich and the poor has increased in Bangladesh in this period of time. The article also claims that the strategy of the public to globalization should go beyond and create adequate opportunity for vulnerable people and provide them with skills that can help them generate more income to improve their lifestyle by globalization.
Using the analysis of growth poverty nexus from 1990-2010 in Bangladesh, the authorsshowed that globalization has a positive impact on poverty reduction in the country and especially in the rural areas. This because through globalization, development can be dispensed to the rural areas and allow rural areas to find lucrative jobs. Globalization also enhance employment opportunities in non-tradable sectors, improve agricultural and manufacturingproduction in the rural areas. By doing so, the government is likely to reduce the cases of rural to urban migration which has been one of the key cause of poverty in the urban areas. By empowering youths in villages and in rural areas, the government can enhance creativity and take advantage of unutilized natural resources in the rural areas. This clearly shows that boosting non-tradable sector can help people to find more wage employment and hence reducing dependency rate while also improving their standards of living. However, this econometricsstudy showed that globalization is not enough to steer economic growth forward and reducepoverty reduction.
Impact of ICT on Economic Growth for Qatar in Globalization
A research done by Hodrob & Awad (2016) aimed to evaluate economic analysis on impacts of ICT on economic growth. It is prudent to note that the importance and significance of the role of ICT is stemmed from empowering people, government and organizations to renovate information into the knowledge to drive a progressive change in the society. In Qatar and other countries, ICT practices and activities plays an essential role in enhancing and improving productivity, growth rate and economic development. Many developed countries in the world has given a great intensity on ICT drivers, tools and techniques that enhance a continuous technology development. The authors showed that economists’ forests that economic growth is greatly influenced ICT investments. The outcome of the research showed that there is a positive relationship between GDP per capita and the ICT index.
Technological advancement and adoption of ICT services helps to improve and streamline production services, automate production process, and reduce the cost of production in the country. The adoption of ICT services in Qatar helps to disseminate information to the production and manufacturing sector, improve information technology as well as improvingservice delivery in various sectors. The study examined the effects of ICT capital and laborstocks on economic development in Qatar from 1993-2013. The data was analyzed using a linear logistic model. The econometric results of the study showed that there is a positive impact of using ICT services to the Qatar economic growth with 0.470 points. The importance of ICT services in this case is that it connects different economic sectors in Qatar and hence improving manufacturing and productivity in the country. However, coordinating ICT and IT services as well as other forms of information regulation can help to streamline dissemination of information, improve production services as well as empower more people to utilize the available opportunities in the regarding ICT and IT services and hence enhancing economic development in Qatar.
Determinants of population growth in UK.
An article by Alvarez-Dias et al (2018) utilized economic analysis to investigate determinates of population growth. The study was based on United Kingdom and investigatedthree variables in regards to the population growth. These variables includes fertility rate in the country, mortality rate and life expectancy. The authors showed that fertility rate in the country is the leading determinants of population growth not only in UK buts also in the whole world. Fertility is defined as the occurrence of birth in a given year. The country production is measured in terms of crude birth rate (CBR) and general fertility rate (GFR) of a given population. The CBR shows the number of birth per year in 1000 population as based in this study. The findings showed that when CBR is greater than 2.0, the population is likely to increase when its less than 2.0 the country is likely to experience population reduction. The study also showed that UK has a CBR of 2.5 which signifies that the fertility rate of UK residents is high.
Mortality rate is another significant factor that determine the population growth in UK. Mortality rate is defined as the rate and number of deaths in a year per 1000 population. Examining mortality rates helps to indicate the general health of the country, the living of standards, country’s economic conditions as well as nutrition and level of development in the country. The study showed that in 2017, there were 700,000 successful births and 669,000 death in the country which shows 0.95% mortality rate. This signifies relatively low mortality rate in UK since it’s less than 1.
Life expectancy is another factor that determine population growth according to the authors. The authors showed that economic development is positively related to the life expectancy in United Kingdom. The study also showed that life expectancy in UK is decreasing significant from 2010 due to the use of antibiotics and modern health facilities.
Agricultural production and economic growth in India
A research study by Kulshrestha & Agrawal (2019) aimed to examine the agricultural production and its impact to the Indian economic growth. It is worth to note India is the largest producer of milk, jute and pulses in the world and second largest producer of wheat, rice, sugarcane and horticultural crops in the world. The data for this study was collected using secondary data from economic survey of India from 1967-2017. The study used linear growth regression with DGP being dependent variable and major crops and factors which affects economic growth being explanatory variable. The major crops under investigation were wheat, rice, groundnut, sugarcane, cotton and pulses. The data analysis was conducted using E-view software.
The coefficient results showed that there is a positive relationship between the GDP and major crop production in that for every 1% increase of major crop production, there is 17% increase of the GDP in the country. This is because of the large scale production of major crops in India. The analyses also showed that in 2017, 60% of the poor working people in India made their living from agricultural activities which in turn shows that agriculture plays an essentialrole to the economic growth. The study showed that in the same year, India generated a GDP of 17% from agricultural activities just behind manufacturing sector which generated 20% of the GDP. This clearly shows that in India, the government should focus and remit much resources to the agricultural sector as it one of the leading sector that contributes greatly to the economic growth. Some of the factors that enhance agricultural success in the country includes good and fertile soil, adequate rainfall in many parts of the country as well as adequate resources provided by the government to boost agricultural activities.
Impact of Public Investment in Economic Growth of Kosovo
An article by Ziberi, Miftari & Leonita (2021) aimed to analyze the relationship between and the impact of public investments in road infrastructure on the economic growth of Kosovo. The study analyzed various macroeconomics factors that affects economic growth such as consumption, investments, exports and imports. It is prudent to note that economic growth and the public growth are perceived to be some of the underlying problems faced by many developing countries, Kosovo being one of them. This study addressed two aspects that are likely to impact the economic growth in Kosovo. These are theoretical analysis of different literaturesthat elaborates on the elements of infrastructural development such as social and economic and road infrastructure. The study used econometric multiple regression model to analyze the impact of the public investments such as road infrastructure and economic growth. The source of data was secondary sources from Kosovo agency of statistics. According to the regression analysis, the study showed that public investments in road infrastructure plays a significant role in enhancing economic growth in Kosovo.
Developing road sector ensures that manufacturing goods are delivered to the markets on time while also ensuring that raw materials are delivered to the factories and hence streamlining manufacturing and production sector. The study concluded that having an efficient transport infrastructure reduce the operational cost of business and improve total factor productivity in Kosovo. For instance, road transport in many countries including Kosovo act as a catalyst for the growth of the economy and hence the government should focus much on improving the infrastructure in the country.
References
Alvarez-Dias, M., d’Hombres, B., Ghisetti, C., Pontarollo, N., & Dijkstra, L. (2018). The Determinants of Population Growth: Literature review and empirical analysis.
Hodrob, R., & Awad, S. (2016). Econometric analysis of the impact of ICT on economic growth for Qatar in globalization context. Economics, 5, 6th.
Kulshrestha, D., & Agrawal, K. K. (2019). An econometric analysis of agricultural production and economic growth in India. Indian Journal of Marketing, 49(11), 56-65.
Shabab, S. A., & Islam, S. A. H. M. (2018). Impact of globalization on economic growth and poverty reduction: a case study of Bangladesh during 1990s. Art Human Open Acc J, 2(5), 308-312.
Ziberi, B. F., Miftari, F., & Leonita, O. M. A. J. (2021). The econometric approach of the impact of public investment in the road-infrastructure in the economic growth of Kosovo. Management Dynamics in the Knowledge Economy, 9(1), 5-16.