Examining the external-factors-led growth hypothesis for the South African economy

Authors: Joshua, U., Adedoyin, F.F. and Sarkodie, S.A.

Journal: Heliyon

Volume: 6

Issue: 5

ISSN: 2405-8440

DOI: 10.1016/j.heliyon.2020.e04009

Abstract:

Reducing unemployment rate and achieving a sustainable economic growth underscore the Sustainable Development Goal 8. Our study investigates a new model that specifies the external-factors-led growth hypothesis for the South African economy. The independent variables include trade openness, external debt, FDI and exchange rate against GDP as the targeted variable. The ARDL approach was adopted after achieving a mixed order of integration from the stationarity test using traditional unit root tests. All external factors were found to exert a positive influence on economic expansion. Trade openness and exchange rate specifically, exert significant influence on economic growth, which means that an improvement in these factors will proportionately favour economic expansion. In essence, a 1% improvement in trade openness and exchange rate will generate an equivalent of 0.30% and 0.19% increase in GDP in the long-run. On average, trade openness, exchange rate and external loan are beneficial to the economy of South Africa. Thus, recommend the need for the authority concern to open more line of bilateral trade to enable the economy to fully tap from the benefits accrued from indulging in economic openness.

https://eprints.bournemouth.ac.uk/34007/

Source: Scopus

Examining the external-factors-led growth hypothesis for the South African economy.

Authors: Joshua, U., Adedoyin, F.F. and Sarkodie, S.A.

Journal: Heliyon

Volume: 6

Issue: 5

Pages: e04009

ISSN: 2405-8440

DOI: 10.1016/j.heliyon.2020.e04009

Abstract:

Reducing unemployment rate and achieving a sustainable economic growth underscore the Sustainable Development Goal 8. Our study investigates a new model that specifies the external-factors-led growth hypothesis for the South African economy. The independent variables include trade openness, external debt, FDI and exchange rate against GDP as the targeted variable. The ARDL approach was adopted after achieving a mixed order of integration from the stationarity test using traditional unit root tests. All external factors were found to exert a positive influence on economic expansion. Trade openness and exchange rate specifically, exert significant influence on economic growth, which means that an improvement in these factors will proportionately favour economic expansion. In essence, a 1% improvement in trade openness and exchange rate will generate an equivalent of 0.30% and 0.19% increase in GDP in the long-run. On average, trade openness, exchange rate and external loan are beneficial to the economy of South Africa. Thus, recommend the need for the authority concern to open more line of bilateral trade to enable the economy to fully tap from the benefits accrued from indulging in economic openness.

https://eprints.bournemouth.ac.uk/34007/

Source: PubMed

Examining the external-factors-led growth hypothesis for the South African economy

Authors: Joshua, U., Adedoyin, F.F. and Sarkodie, S.A.

Journal: HELIYON

Volume: 6

Issue: 5

eISSN: 2405-8440

DOI: 10.1016/j.heliyon.2020.e04009

https://eprints.bournemouth.ac.uk/34007/

Source: Web of Science (Lite)

Examining the external-factors-led growth hypothesis for the South African economy

Authors: Joshua, U., Adedoyin, F.F. and Sarkodie, S.A.

Journal: Heliyon

Volume: 6

DOI: 10.1016/j.heliyon.2020.e04009

https://eprints.bournemouth.ac.uk/34007/

https://www.scopus.com/inward/record.uri?eid=2-s2.0-85084843032&doi=10.1016%2fj.heliyon.2020.e04009&partnerID=40&md5=36b86473d9f9757c598c8a3169b9446f

Source: Manual

Examining the external-factors-led growth hypothesis for the South African economy.

Authors: Joshua, U., Adedoyin, F.F. and Sarkodie, S.A.

Journal: Heliyon

Volume: 6

Issue: 5

Pages: e04009

eISSN: 2405-8440

ISSN: 2405-8440

DOI: 10.1016/j.heliyon.2020.e04009

Abstract:

Reducing unemployment rate and achieving a sustainable economic growth underscore the Sustainable Development Goal 8. Our study investigates a new model that specifies the external-factors-led growth hypothesis for the South African economy. The independent variables include trade openness, external debt, FDI and exchange rate against GDP as the targeted variable. The ARDL approach was adopted after achieving a mixed order of integration from the stationarity test using traditional unit root tests. All external factors were found to exert a positive influence on economic expansion. Trade openness and exchange rate specifically, exert significant influence on economic growth, which means that an improvement in these factors will proportionately favour economic expansion. In essence, a 1% improvement in trade openness and exchange rate will generate an equivalent of 0.30% and 0.19% increase in GDP in the long-run. On average, trade openness, exchange rate and external loan are beneficial to the economy of South Africa. Thus, recommend the need for the authority concern to open more line of bilateral trade to enable the economy to fully tap from the benefits accrued from indulging in economic openness.

https://eprints.bournemouth.ac.uk/34007/

Source: Europe PubMed Central

Examining the external-factor-led growth hypothesis for the South African economy

Authors: Udi, J., Adedoyin, F. and Sarkodie, S.A.

Journal: Heliyon

Volume: 6

Issue: 5

ISSN: 2405-8440

Abstract:

Reducing the unemployment rate and achieving a sustainable economic growth underscore the sustainable development goal 8. Our study investigates a new model that specifies the external-factors-led growth hypothesis for the South African economy. The independent variables include trade openness, external debt, FDI and exchange rate against the GDP as the targeted variable. The ARDL approach was adopted after achieving a mixed order of integration from the stationarity test using traditional unit root tests. All external factors were found to exert a positive influence on economic expansion. Trade openness and exchange rate specifically, exert significant influence on economic growth which means that an improvement in these factors will proportionately favour economic expansion. In essence, a 1% improvement in the trade openness and the exchange rate will generate an equivalent of 0.30% and 0.19% increase in GDP in the long-run. On average, trade openness, exchange rate and external loan are beneficial to the economy of South Africa. Thus, a recommendation was made of the need for the authority concern to open more line of bilateral trade to enable the economy to fully tap from the benefits accrued from indulging in economic openness.

https://eprints.bournemouth.ac.uk/34007/

Source: BURO EPrints