JOURNAL OF LIFE ECONOMICS

The nexus between financial development and economic growth in the SADC region: Empirical evidence using ARDL-PMG estimation techniques

Ngonidzashe Chiranga — Sun, 02 Feb 2025 00:00:00 +0300

This study aims to provide empirical insights into the financial development and economic growth nexus in the SADC region by examining how much financial development translates to economic growth in the short or long run. Also, the examination of economic growth is impacted more by external or internal factors. Also, causality testing economic growth on financial development. The study applies the panel Autoregressive Distributive method (ARDL-PMG) on a panel data set of 11 SADC countries in the period 1998-2021. The study finds a negative and significant relationship between economic growth and financial development at a 1% level of significance in the long run whereas in the short run, the relationship is negative but not significant. Furthermore, the study findings suggest that economic growth in the SADC region is more influenced by external factors than internal factors as signified by the significant negative long-run influence of external debt and the significant positive influence of trade openness. On the other hand, financial development has a neutral impact on economic growth. The study recommends that SADC countries should embrace outward-looking policies as an avenue to learn new ideas from the world.

Examining macroeconomic performance of G20 countries with multi-criteria decision making methods TOPSIS and SAW

Eda Genişel Çınar, Özlem Deniz Başar — Sun, 02 Feb 2025 00:00:00 +0300

There are many studies in the literature to analyze the macroeconomic performance of countries. These studies contribute to obtaining various results by analyzing the subject with different indicators. The aim of this study is to examine the macroeconomic performances of G20 countries for the 2022 period with the TOPSIS and SAW methods from the Multi-Criteria Decision Making Methods and to compare the results obtained for both methods. In this study, variables such as growth, import, export, inflation, unemployment, foreign direct investment, gross domestic product and expenditure were used. However, the European Union, Argentina and Russia were not included in the study because the World Bank did not publish data for some variables for the 2022 period. In the TOPSIS method, the country that gave the best results was Italy, while in the SAW method, the country that gave the best results was the People's Republic of China. In addition, Turkey was ranked last in the TOPSIS method, while South Africa was ranked last in the SAW method. The different application steps for both methods caused this difference in the results. The fact that the study includes different and detailed macroeconomic indicators for the G20 countries constitutes its unique aspect and reveals its difference from other studies in the literature.

Creative industries in global trade: An international competitiveness analysis

Mehmet Cemil Şimşek — Sat, 01 Feb 2025 00:00:00 +0300

Creative industries are increasingly recognized as key drivers of sustainable economic development. This study examines the international trade competitiveness of 226 economies in the creative industries, utilizing seven widely utilised indices of trade competitiveness for the most recent year data available, 2023. The analysis explores export, import, and trade balance patterns across various economic groups, regions, and major economies in creative industries. It also identifies the export value of the most traded ten creative industries products worldwide. Findings reveal that approximately 78% of the 226 countries exhibit comparative disadvantages or lack international competitiveness in creative industries. Notably, there is a high concentration of competitiveness in the creative industries around certain major countries, particularly in Asia-Pacific and European regions, including countries such as Türkiye, Italy, India, China, Indonesia, France, Vietnam, Poland, Portugal, Thailand, and Spain. Furthermore, 10 out of 262 creative industry products account for 52.4% of creative industries exports in the world, indicating a high level of product concentration in creative industries. This study also reveals that inter-industry trade, driven by comparative advantage, is the dominant pattern in international creative industries trade, with only around 3% of countries exhibiting intra-industry trade patterns.

The effect of renewable energy production in Turkey on exports

Tolunay Yıldız — Sun, 02 Feb 2025 00:00:00 +0300

Bu çalışmada, Türkiye'deki yenilenebilir enerji üretiminin ihracata etkisi incelenmiştir. Özellikle Yenilenebilir Enerji Kaynaklarını Destekleme Mekanizması (YEKDEM) çerçevesinde yürütülen politikaların yenilenebilir enerji üretimindeki yeri incelenmiştir. Yıllık yenilenebilir enerji üretim verileri ile ihracat verileri arasındaki ilişkiyi anlamak amacıyla regresyon analizi yapılmıştır. Analiz sonuçları, yenilenebilir enerji üretiminin Türkiye'nin ihracatını olumlu yönde etkilediği ve artırdığı sonucuna varmaktadır.