SavedAdd your journal

Journals / Eskişehir Osmangazi Üniversitesi İktisadi ve İdari Bilimler Dergisi / 2022 / Cilt: 17 - Sayı: 3

The Long-Run Effect of International Reserves on Economic Growth in Developing Economies

Uluslararası Rezervlerin Gelişme Yolundaki Ekonomilerde Ekonomik Büyüme Üzerindeki Uzun Dönem Etkisi

Muhammed BENLİ
Aykut EKİNCİ
Bilal ORHAN
Pages
822–836
Publication Date
2022-12-01
DOI
—
🏛️Bibliographic metadata and full text access for this article are provided via DergiPark.
DergiPark Record ↗
✨

AI Summary & Key Takeaways

AI Insight
⚡ TL;DR(Too Long; Didn't Read)

The empirical evidence confirms the deteriorating impact of inflation and the significant positive effect of international reserves on the long-run economic growth in the selected sample of countries.

📌 3 Key Takeaways

🎯
Objective & Hypothesis:This paper attempts to empirically investigate the effect of international reserves growth on economic growth in the long-run in 41 developing countries over the period 1970-2019.
📊
Key Findings & Data:For this purpose, we employ the CS-ARDL and CS-DL estimators to take into account heterogeneity and cross-sectional dependence that may present in our panels, as well as the DFE and MG estimators which are the traditional panel data estimators.
💡
Conclusion & Impact:The empirical evidence confirms the deteriorating impact of inflation and the significant positive effect of international reserves on the long-run economic growth in the selected sample of countries.
🔬Design:Research Article
📍Scope:2019 Verileri
⚙️Variables:Uluslararası Rezervler · Panel Veri Modelleri · Yatay Kesit Bağımlılığı

Abstract

This paper attempts to empirically investigate the effect of international reserves growth on economic growth in the long-run in 41 developing countries over the period 1970-2019. For this purpose, we employ the CS-ARDL and CS-DL estimators to take into account heterogeneity and cross-sectional dependence that may present in our panels, as well as the DFE and MG estimators which are the traditional panel data estimators. The empirical evidence confirms the deteriorating impact of inflation and the significant positive effect of international reserves on the long-run economic growth in the selected sample of countries.

Özet

Bu çalışma, 1970-2019 döneminde 41 gelişmekte olan ülkede uzun dönemde uluslararası rezervlerdeki büyümenin ekonomik büyüme üzerindeki etkisini ampirik olarak incelemeye çalışmaktadır. Bu amaçla, panellerdeki olası heterojenliği ve yatay kesit bağımlılığını hesaba katmak için CS-ARDL ve CS-DL tahmin edicileri ile geleneksel panel veri tahmincileri olan DFE ve MG tahmincileri kullanılmıştır. Ampirik bulgular, seçilen ülke örnekleminde, enflasyonun iktisadi büyüme üzerindeki negatif etkisini ve uluslararası rezervlerin uzun dönem ekonomik büyüme üzerindeki pozitif etkisini doğrulamaktadır.

🔖

Cite This Article

BENLİ, M., EKİNCİ, A., ORHAN, B. (2022). The Long-Run Effect of International Reserves on Economic Growth in Developing Economies. Eskişehir Osmangazi Üniversitesi İktisadi ve İdari Bilimler Dergisi, Cilt: 17 - Sayı: 3, 822–836. https://ajindex.com/articles/859268

📄 Full Text PDF Viewer

📄

PDF görüntüleyici hazırlanıyor...

References (10)

  1. Lee, M. J,; Aizenman, M. J. (2005), “International Reserves: Precautionary vs. Mercantilist Views, Theory and Evidence”, International Monetary Fund. Akinboyo, L. O,; Omotosho, B. S,; Oladunni, S,; Owolabi, O. H. (2016), “External Reserves and Economic Growth in Nigeria: An Empirical Investigation”, West African Financial and Economic Review, Vol. 14 No. 1: 53-78.
  2. Aizenman, J,; Sun, Y. (2012), “The Financial Crisis and Sizable International Reserves Depletion: From ‘Fear of Floating’to the ‘Fear of Losing International Reserves’?”, International Review of Economics & Finance, Vol. 24: 250-269.
  3. Awoderu, B. K,; Ochalibe, A. I,; Obekpa, H. O. (2017), “Policy Implications of Long-run Relationship Between External Reserve and Economic Growth in Nigeria”, International Journal of Academic Research and Reflection, Vol. 5 No. 1: 82-95.
  4. Ben-Bassat, A,; Gottlieb, D. (1992), “Optimal International Reserves and Sovereign Risk”, Journal of International Economics, Vol. 33 No. 3-4: 345-362.
  5. Benigno, G,; Fornaro, L. (2012), “Reserve Accumulation, Growth and Financial Crises”, Growth and Financial Crises (November 2012).
  6. Bentum-Ennin, I. (2014), “International Reserves Accumulation and Economic Growth in the West African Monetary Zone”, International Research Journal of Marketing and Economics, Vol. 1 No. 9: 31-56.
  7. Bird, G,; Rajan, R. (2003), “Too Much of a Good Thing? The Adequacy of International Reserves in the Aftermath of Crises”, World Economy, Vol. 26 No. 6: 873-891.
  8. Blanchard, O. J,; Faruqee, H,; Das, M,; Forbes, K. J,; Tesar, L. L. (2010), “The Initial Impact of the Crisis on Emerging Market Countries [with comments and discussion”, BrookingsPpapers on Economic Activity, 263-323. Bussière, M,; Cheng, G,; Chinn, M. D,; Lisack, N. (2015), “For a Few Dollars More: Reserves and Growth in Times of Crises”, Journal of International Money and Finance, Vol. 52: 127-145.
  9. Chudik, A,; Pesaran, M. H. (2015), “Common Correlated Effects Estimation of Heterogeneous Dynamic Panel Data Models With Weakly Exogenous Regressors”, Journal of Econometrics, Vol. 188 No. 2: 393-420.
  10. Chudik, A,; Mohaddes, K,; Pesaran, M. H,; Raissi, M. (2013), “Debt, Inflation and Growth-Robust Estimation of Long-Run Effects in Dynamic Panel Data Models”, Available at SSRN 2371243. Chudik, A,; Mohaddes, K,; Pesaran, M. H,; Raissi, M. (2016), “Long-Run Effects in Large Heterogeneous Panel Data Models with Cross-Sectionally Correlated Errors”, In Essays in Honor of Aman Ullah. Emerald Group Publishing Limi