Identify factors affecting on the economic growth of developed countries: Application of panel Tobit and spatial panel Tobit models

Subject Areas : Agricultural Economics Research

Mohammad Ghorbani ¹ , Samira Shayanmehr ²

1 - Professor of Agricultural Economics, Ferdowsi University of Mashhad
2 - Ph.D. Student, Agricultural Economics, Ferdowsi University of Mashhad

Received: 2019-04-23 Accepted : 2022-04-19 Published : 2022-04-21

Keywords: panel data, Economic Growth, life expectancy, Foreign Direct Investment,

Abstract :

The uncertainty in economic growth theory and multiple alternative measures to affecting components on economic growth and lack of specification of the most appropriate to investigate the variables affecting economic growth has led to introducing new regression models to identify more accurate factors affecting on economic growth that focused by economic researchers. Therefore, Therefore, this study aimed to identify factors affecting economic growth and type of spatial communications of 21 selected developed countries during 2005-2013 using panel Tobit and spatial panel Tobit models is taken. The evaluation among used models in this study showed that the spatial panel Tobit with spatial error gave favorable results. Results showed that population, research and development expenditure, foreign direct investment and life expectancy has significant positive effect and trade liberalization has an insignificant positive effect on economic growth. It is suggested in future studies about countries with adjacent location, spatial models used besides the competitive models to achieve better results.

References:

1. Kumar RM, Joseph CS. Financial Inclusion: An overview of various business models in India. Asian Journal of Management. 2013; 4: 74-81.

      [DOI : 10.5958/0973-9343.2014.00228.2].

2. Radmehr R, Henneberry SR, Shayanmehr S. Renewable energy consumption, CO2 emissions, and economic growth nexus: a simultaneity spatial modeling analysis of EU countries. Structural Change Economic Dynamics. 2021; 57:13-27.

      [DOI: 10.1016/j.strueco.2021.01.006].

3. Kafae M, Jozi A. Factors Affecting Iran's Economic Growth: Bayesian Average Approach. Macroeconomics. Research Journal of Macroeconomics. 2013; 15: 61-82.      http://jes.journals.umz.ac.ir/article_71.html?lang=fa


4. Sala-i-Martin X, Doppelhofer G, Miller R. Determinants of long-term growth: A Bayesian averaging of classical estimates (BACE) approach. American economic review. 2004; 813-35.

https://www.sid.ir/fa/journal/ViewPaper.aspx?ID=245004

5. Dejpasand F. Factors affecting Iran's economic growth. The journal of economic research. 2005; 5:13-47. https://joer.atu.ac.ir/article_3405.html?lang=en


6. Komijani A, Memarnejad A. The importance of human capital and R&D (research and development) in Iran's economic growth. Iranian Journal of Trade Studies (Ijts). 2004; 31:1-31.

https://www.sid.ir/fa/journal/ViewPaper.aspx?id=7200

7. Gorji A, Aliporian M. Analyzing the effect of trade liberalization on the economic growth of OPEC member countries. Iranian Journal of Trade Studies (Ijts). 2006; 40:187-203.  https://www.sid.ir/fa/Journal/ViewPaper.aspx?ID=51796


8. Jafari Samimi A, Alizadeh Malafeh E. Simulation of green tax on economic growth in Iran: application of computable General Equilibrium (CGE) Approach. Journal of Economic Growth and Development research. 2016; 6:57-70. http://ecor.modares.ac.ir/article-18-2162-fa.html


9. Anosheh S. The effect of R & D expenditure on economic growth to separate sections of the investor (case study of OIC Countries). Applied economics. 2011; 2:59-78.

       https://jae.srbiau.ac.ir/article_3843.html

10. Farzin M, Y A, Fahimifar F. FDI and economic growth: combination of system dynamic and econometrics approaches. Journal of Economic Research and Policies. 2012; 20:29-62.

https://www.sid.ir/en/journal/ViewPaper.aspx?id=264288

11. Alizadeh M, Babaei M, Jafari M, Khodae M. The Interaction between FDI and Economic Development in D8 Members. Quarterly journal of fiscal and Economic policies. 2014; 2:87-104.

       http://qjfep.ir/article-1-91-en.html

12. Ebrahimi S. Effect of financial system structure on economic growth. The Economic Research. 2014; 14:117-34. https://www.sid.ir/en/journal/ViewPaper.aspx?id=406257


13. Rezai M, Yavari K, Azati M, Etesami M. The effect of abundant oil revenues on Iran's economic growth through the channel of impact on imbalances budget and foreign sector. Journal of Economic Growth and Development research. 2016; 6:131-44. https://www.sid.ir/en/journal/ViewPaper.aspx?ID=530227


14. Croix D, Lindh T, Malmberg B. Demographic change and economic growth in Sweden: 1750–2050. Journal of macroeconomics. 2009; 31:132-48. [DOI: 10.1016/j.jmacro.2007.08.014]


15. Popa A-M. The impact of social factors on economic growth: Empirical evidence for Romania and European Union countries. Romanian Journal of Fiscal Policy. 2012; 3:1-16. http://hdl.handle.net/10419/107942


16. Upreti P. Factors affecting economic growth in developing countries. Major Themes in Economics. 2015; 17:37-54. https://scholarworks.uni.edu/mtie/vol17/iss1/5


17. Saedi R, Khalifehsoltani A, Akhlaghi H. The investigation of factors affecting the capital structure using the Tobi models: an empirical examination of static trade-off, pecking order and agency costs theories. Journal of asses Management and Financing. 2014; 1:37-54.

https://amf.ui.ac.ir/article_19872.html?lang=en

18. TahamiPour M, Salami H, Yazdani S, Chizari A. Determining Spatial Dependency of Systematic Risk of Dryland Wheat Yield in Iran: Application of spatial autoregressive models. Iranian Journal of Agricultural Economics and Development. 2012; 44:343-56.

       [DOI: 10.22059/IJAEDR.2013.50223]

19. Salami H, Nemati M. Exploring systematic yield risk and its strengthening factors for apple product in Iran: application of spatial autoregressive models. Journal of agricultural economics and development. 2014; 27:288-99.

      [DOI: 10.22067/JEAD2.V1391I5.23070]

20. Rafiei Darani H, Ghorbani M. Labor Participation in National Economics: Spatial Regression Analysis. Journal of economic modeling research. 2015; 5: 119-40.

       https://jfm.khu.ac.ir/article-1-831-en.html

21. Lee J, Wong DW. Statistical analysis with ArcView GIS: John Wiley & Sons; 2001.

       https://www.wiley.com/en us/Statistical+Analysis+of+Geographic+Information+with+ArcView+GIS+and+ArcGIS-p-9780471468998

22. Kohansal M, Shayanmehr S. The interplay between energy consumption, economic growth and environmental pollution: application of spatial panel simultaneous-equations model. Iranian Energy Economics. 2017; 5:179-216.

      [DOI: 10.22054/JIEE.2017.7308]

23. Tsai Y-H. Quantifying urban form: compactness versus' sprawl'. Urban studies. 2005; 42:141-61.

       [DOI: 10.1080/0042098042000309748]

24. Cliff AD, Ord JK. Spatial processes: models & applications: Taylor & Francis; 1981.

       [DOI: 10.1080/00690805.1983.10438243]

25. Assari A, Aghaeikhondabi M. The impact of information & communication technology (ICT) on economic growth of OPEC countries. The Economic Reseach. 2007; 2:63-82.

https://ecor.modares.ac.ir/browse.php?a_id=5246&sid=18&slc_lang=en

26. Piraee K, Dadvar B. The effect of inflation on economic growth in Iran with special emphasis on uncertainty. The Economic Research. 2011; 11:67-80.

https://www.sid.ir/en/journal/ViewPaper.aspx?id=200501

27. Soheili K, Delangizan S, Pormohamadian p. Determining the threshold of inflation rate in Iran using nonlinear models. Journal of Macroeconomics. 2013; 16:121-40. http://jes.journals.umz.ac.ir/article_67.html?lang=fa


28. Arbabian S, Rafat B, AshrafianPour M. Relationship between International Tourism and Economic Growth (Case Study: Selected Countries of OIC). Journal of Economic Growth and Development research. 2014; 4:97-116.

https://www.sid.ir/fa/journal/ViewPaper.aspx?id=212934

29. Shakeri A, Ebrahimisalari T. The effects of research & development expenditures on patent flow and economic growth: A comparative analysis between developed and developing countries. Monetary and financial economics. 2011; 16:88-125. https://www.sid.ir/FileServer/JF/66413882905


30. Mahdavi R, Jahangard E, khataei M. The impact of foreign direct investment on economic growth: the role of financial market development in host countries by panel data method. The Journal of Economic Modeling Research 2011; 2:21-40.

      https://jemr.khu.ac.ir/article-1-37-fa.html        

31. Azarbaijani K, Shahidi M, Mohammadi F. Investigation of the relationship between foreign direct investment and growth using Autoregressive Distributed Lag (ARDL). The journal of economic research. 2009; 2:1-17.

https://ecor.modares.ac.ir/article-18-11567-fa.html

32. Ahmadi A, Dehnavi J, Haghnejad A. Economic growth and foreign direct investment in the developing countries: an analysis based on panel data. The journal of economic research. 2011; 41:159-80. https://www.sid.ir/en/Journal/ViewPaper.aspx?ID=230602


33. Beugelsdijk S, Smeets R, Zwinkels R. The impact of horizontal and vertical FDI on host's country economic growth. International Business Review. 2008; 17:452-72.

       [DOI: 10.1016/j.ibusrev.2008.02.004]

34. Hassen S, Anis O. Foreign direct investment (FDI) and economic growth: an approach in terms of cointegration for the case of Tunisia. Journal of Applied Finance Banking. 2012; 2:193.

http://scienpress.com/Upload/JAFB/Vol%202_4_13.pdf

35. Malin Jondell A. What factors affect economic growth in china? : Sodertorn University; 2012.

       https://www.diva-portal.org/smash/record.jsf?pid=diva2:540820

36. Savaş B. The relationship between population and economic growth: empirical evidence from the Central Asian Economies. Orta Asya ve Kafkasya Araştırmaları. 2008;135-53.

       https://www.acarindex.com/dosyalar/makale/acarindex-1423910570.pdf.

37. Ebrahimi B, Barzani M, Dallaliesfahani R, Fakhar M. Empirical analysis of effect of qualitative financial development on economic growth (Case of Iran). Journal of Economic Growth and Development research. 2016; 6:71-84.

https://www.sid.ir/fa/journal/ViewPaper.aspx?id=285597

38. Hezareh R, Shayanmehr S, Darbandi E, Schieffer J. Energy consumption and environmental pollution: evidence from the spatial panel simultaneous-equations model of developing countries. 2017. p. 1377-2016-109899.

      [DOI: 10.22004/ag.econ.252818]

39. Azarbaijani K, Eshraghi A, Ranjbar H. he impact of export diversification, financial development and trade liberalization on economic growth. The first national electronic conference on Iran's economic outlook Esfahan. 2013. https://civilica.com/doc/260222/