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This study examines the relative efficacy of monetary policy transmission channels in Tanzania. The study applied co-integration and error correction modeling approach to analyze the short-run and long-run comparative effects of five monetary policy transmission mechanisms on economic growth. The study found that growth-effects of monetary policy depends on transmission channels used. The results show that interest rate channel and stock price channel are not effective in Tanzania. The results further show that though the bank credit channel is working, it is weak. Moreover, the results reveal that exchange rate and expected inflation are the dominant transmission channels of monetary policy in Tanzania. Thus, to enhance interest rate, stock price, and bank credit channels concerted efforts are required to increase financial inclusion in Tanzania. The central bank, commercial banks, financial markets, and other players should continue increasing access and range of financial services; revising lending procedures to private sector; and devise strategies to encourage more economic agents, preferably the domestic investors, to participate in the stock exchange market. In addition, there is a need for the central bank to closely continue monitoring inflation and exchange rates as the dominant monetary policy transmission mechanisms.

Due to a lack of historical data, there is a gap in the literature with regard to total factor productivity (TFP) series in the long run for Italy. In this article, by combing information from the literature, original TFP estimates assessed with a “price dual” methodology (where changes in factor prices are used to capture physical output), and a Cobb-Douglas production equation, we first introduce a set of new TFP measures for Italy between 1360 and 1770 as well as for various global regions from c. 1400 to 2010. Second, the resulting new dataset allows us to decompose TFP in global spillover effects of technology and local effects for Italy in the long run. We find that spillover effects played a non-significant part in determining Italy’s TFP decline between c. 1600 and 1800. However, the spillover component grew faster during the period 1890-2010 and reached peaks during phases of declining local (trend) TFP growth, such as between the two world wars and in the period starting with the second globalisation (1989-2010).

This study examines the relative efficacy of monetary policy transmission channels in Tanzania. The study applied co-integration and error correction modeling approach to analyze the short-run and long-run comparative effects of five monetary policy transmission mechanisms on economic growth. The study found that growth-effects of monetary policy depends on transmission channels used. The results show that interest rate channel and stock price channel are not effective in Tanzania. The results further show that though the bank credit channel is working, it is weak. Moreover, the results reveal that exchange rate and expected inflation are the dominant transmission channels of monetary policy in Tanzania. Thus, to enhance interest rate, stock price, and bank credit channels concerted efforts are required to increase financial inclusion in Tanzania. The central bank, commercial banks, financial markets, and other players should continue increasing access and range of financial services; revising lending procedures to private sector; and devise strategies to encourage more economic agents, preferably the domestic investors, to participate in the stock exchange market. In addition, there is a need for the central bank to closely continue monitoring inflation and exchange rates as the dominant monetary policy transmission mechanisms.

This study examines whether public expenditure financing mode matters for economic growth in Tanzania. The study employed co-integration and error correction modeling approach to explore the short-run and long-run effects of various methods of financing public expenditure on economic growth. The study confirmed that the growth effects of public expenditure depends on its financing mode. The results show that public expenditure financed through tax revenue and non-tax revenue enhance growth. Though tax revenue financed expenditure has a marginal growth effect suggesting existence of high tax rates in Tanzania. Also, the results show that while public expenditure financed through external borrowing bolster growth, government spending based on internal borrowing and grants dampens economic growth. This outcome suggests that grants are tied with conditions that have adverse economic effects to recipient country and that government domestic borrowing crowds out private sector investment. In order to promote growth, government has to increase domestic resource mobilization by widening tax base, controlling tax revenue leakages and tapping more non-tax revenues. Moreover, in case of budget deficit, government revenues should be supplemented by commercial external borrowing rather than internal borrowing and grants.

Document Information Language:English Accession Number: WOS:000518367800103 PubMed ID: 32123762, In this era of intensive electricity utilization for economic development, the role of urbanization remains inconclusive, especially in developing economies. Here, this study examined the electricity consumption and economic growth nexus in a trivariate framework by incorporating urbanization as an additional variable. Using the recent novel Maki cointegration test, Ng-Perron, Zivot-Andrews, and Kwiatkowski unit root tests along with FMOLS, DOLS and the CCR estimation methods, we relied on an annual frequency data from 1971-2014. Results from FMOLS, DOLS and the CCR regression confirms the electricity consumption-driven economic growth. This is desirable as Nigeria is heavily dependent on energy (electricity) consumption. A unidirectional causality from urbanization to electricity consumption and economic growth was found but the long-run empirical findings revealed urbanization impedes growth-a situation that has policy implications. The study highlights that though urbanization is a good predictor of Nigeria's economic growth, however, the adjustment of the energy portfolio to meet the growing urban demand will curtail the adverse and far-reaching impact of urbanization on the economy., SA Sarkodie acknowledges the financial support of Nord University Business School, Bodo, Norway.

How much does public capital matter for economic growth? How large should it be? This paper attempts to answer these questions, taking the case of Sub-Saharan African (SSA) countries. It develops and estimates a model that posits a non-linear relationship between public investment and growth, to determine the growth-maximising public investment GDP share. It empirically also accounts for the crowding-in and crowding-out effects between public and private investment, with equations estimated separately and simultaneously, using System GMM. The paper further runs a simulation and examines the public investment GDP share that maximises consumption. This is estimated to be between 8.4 percent and 11 percent. The results from estimating the growth model are in the middle of this range, which is larger than the observed value of 7.2 percent at the end of the sample period. These outcomes suggest that, on average, there has been public under-investment in Africa, contrary to previous findings.

This paper revisits four recent cross-country empirical studies on the effects of inequality on growth. All four studies report strongly significant negative effects, using the popular system generalized method of moments estimator that is frequently used in cross-country growth empirics. This paper shows that the internal instruments relied on by this estimator in these inequality-and-growth regressions are weak, and that weak instrument-consistent confidence sets for the effect of inequality on growth include a wide range of positive and negative values. This suggests that strong conclusions about the effect of inequality on growth— in either direction—cannot be drawn from these studies. This paper also systematically explores a wide range of alternative sets of internal instruments, and finds that problems of weak instruments are pervasive across these alternatives. More generally, the paper illustrates the importance of documenting instrument strength, basing inferences on procedures that are robust to weak instruments, and considering alternative instrument sets when using the system generalized method of moments estimator for cross-country growth empirics.

This study explores the long-run dynamics of economic growth, with particular reference to The Netherlands. The time span covered extends backwards to the mid-nineteenth century, using new time series on disaggregated physical and human capital stocks for the period 1850-1913. Economic growth in the nineteenth century is shown to have had a strong physical capital-using bias, initially concentrated in buildings and infrastructure. The close relationship between investment in machinery and economic growth did not begin to take shape until the end of the nineteenth century, to increase in strength in the course of the twentieth century.

This study explores the long-run dynamics of economic growth, with particular reference to The Netherlands. The time span covered extends backwards to the mid-nineteenth century, using new time series on disaggregated physical and human capital stocks for the period 1850-1913. Economic growth in the nineteenth century is shown to have had a strong physical capital-using bias, initially concentrated in buildings and infrastructure. The close relationship between investment in machinery and economic growth did not begin to take shape until the end of the nineteenth century, to increase in strength in the course of the twentieth century.