Analyzing the economic significance of labor organizations in the UK. An in-depth analysis of the History of Economic Thought. The deficiencies of the economic systems of the former Soviet Union satellite states. Explaining the way a neoliberal reform is implemented. The correlation between food policy, economics, and world hunger issues Aug 15, · China’s Economic Growth – The Effects and Consequences on the World. Research Aim: China is taking over the world – this is a fact. Whether a country or a nation accepts it or not, China is slowly making its way to become a superpower. Be it technology, daily products, banking, financial services, or any other thing Oct 04, · Think about it, you don’t want to get stuck halfway through the dissertation only to find out that there’s not enough economic research, and you should start from scratch. To save you from such a struggle, we have compiled a list of the best finance dissertation topics for you to choose from
International Relations Dissertation Topics and Titles - Research Prospect
For many years the relationship between economic growth and inflation has been one of the most widely researched topics in macroeconomics. In economics, inflation is defined as the increase in the level of prices and economic growth and is usually defined as the Gross Domestic Product GDP. An increase in inflation means that prices have risen, dissertation economic growth.
With an increase in inflation, there is a decline in the purchasing power of money, which reduces consumption and therefore GDP decreases. High inflation can make investments less desirable, since it creates uncertainty for the future and it can also affect the balance of payments because exports become more expensive. As a result, dissertation economic growth, GDP is decreases further.
So it appears that GDP is negatively related to inflation, dissertation economic growth. However, there are studies indicating that there may also be a positive relationship, dissertation economic growth. The Phillips curve, dissertation economic growth, for example, dissertation economic growth, shows that high inflation is consistent with low rates of unemployment, implying that there is a positive impact on economic growth.
In this paper I examine empirically the relationship between inflation and economic growth Dissertation economic growth in the United Kingdom. The paper is organised as follows: section 2 gives the literature review; section 3 describes the data; section 4 shows the methodology and the empirical evidence; and section 5 provides the summary of the study and conclusions reached.
Various studies have been presented on the issue of inflation and economic growth, dissertation economic growth. Some of them are briefly discussed here. Fischer showed that inflation and growth are negatively related. More specifically, he argues that growth, investments and productivity are negatively related to inflation and that capital accumulation and productivity growth are also negatively affected by budget deficits.
Moreover, he states that some exceptional cases show that even though high growth is not necessarily associated with low inflation and small budget deficits, high rates of inflation are not consistent with permanent growth.
Barro examined data for almost countries for the period between and and found that the impact of inflation on growth and investment is significantly negative, given that a number of countries characteristics are constant. An average increase in inflation of ten per cent leads to a decrease of GDP and investment by 0.
He also showed that even if dissertation economic growth has a small impact on growth, this appears to be significant in the long run. Bruno and Easterly examined the relationship between inflation and economic growth dissertation economic growth they found that this relationship exists only if there are high inflation rates.
To determine the high rates of inflation, they set a threshold of 40 per cent. Above this threshold, inflation has a temporally negative impact on growth, whereas below this threshold, dissertation economic growth found no robust relationship.
The decrease in growth is temporary because after a high inflation crisis, the economy quickly recovers to its previous level, dissertation economic growth. Their results are robust after controlling for other factors such as external shocks. Ghosh and Phillips studied the relationship between inflation and GDP for a large set of IMF countries for the period from to They found that, generally, the coefficient, with respect to inflation, was negative.
The findings dissertation economic growth statistically significant. The relationship between these appeared to be negative for very low inflation rates around two to three per cent.
They also found a negative correlation for higher values but the relationship was convex, meaning that a decline in growth related to an increase of from ten to 20 per cent inflation was larger than that related to an increase in inflation of from 40 to 50 per cent.
GDP, in real terms, is measured in levels and seasonally adjusted with being the base period. Inflation is measured as the logarithm of the CPI rate[1], also being seasonally adjusted. Having the variables in logarithms reduces the dissertation economic growth and heteroskedasticity and makes their relationship linear. Figure 1 shows the trend of inflation and LGDP. In LGDP reaches its lowest point, dissertation economic growth, probably because of the recession in the UK and the global recession, whereas inflation reaches its maximum, dissertation economic growth.
Inhowever, when another recession began, there was an enduring drop in LGDP, starting from untilmaking this recession the longest so far, with inflation decreasing. Finally, the UK economy started improving in In general, it seems that although inflation is negatively related to LGDP, dissertation economic growth, it has also a small effect on changes in LGDP. From these plots, a trend in LGDP is apparent, so we can assume that LGDP may be unit root with stationary dissertation economic growth or trend.
On the other hand, there is no apparent trend in inflation and thus we might infer that inflation is either stationary around the mean or, at most, dissertation economic growth, a drift-less unit root process. However, these will be checked later by doing the unit root test. Table 1 below illustrates the descriptive statistics of these variables. We see that inflation is more spread out than LGDP, because its standard deviation is higher 0. Moreover, LGDP has a left-skewed distribution Both variables have a platykyrtic distribution, flatter than a normal with a dissertation economic growth peak LGDP: 1.
Most of the theories imply that there is a negative relationship between inflation and GDP. In this section we will estimate empirically the impact of inflation on GDP using the following ad-hoc relationship:. where β 1 represents the long run elasticity with respect to inflation. First, we have to check the order of integration of our variables. We want them to be stationary, dissertation economic growth, because non-stationarity leads to spurious results, since test statistics t and F are not following their usual distributions and thus standard critical values are almost always incorrect.
The test shows that both variables are non-stationary and integrated of order 1 I 1 [2]. In order to make our variables stationary we have to de-trend the variables. In order for our variables to be de-trended, we generate their first differences. Therefore, dissertation economic growth, when we do the test for the de-trended variables we use only the intercept choice.
Now the variables are stationary and integrated of order 0 I 0 [3]. The results are summarised in Table 2. Although we eliminated the trend by using the first differences, this will cause us to lose valuable and important information for the long run equilibrium. Therefore, Engle and Granger developed the co-integration analysis.
In this section we estimate our long-run model, showed in the equation 1 above, and then we test for co-integration in our variables by using the Engle-Granger approach. According to this approach, if the linear combination of non-stationary variables is itself stationary, then our series are co-integrated. We run the co-integration regression for 1using both variables since they are non-stationary I 1 and then we test for the order of integration of the residuals. We find that the t-statistic is Thus the residuals are non-stationary.
Checking also for the residuals graph, they indeed appear to be non-stationary[5] and we cannot say anything about the long run relationship. However, dissertation economic growth can say something about the short run. This is because, unlike the long run regression, the short run model contains I 0 variables, making the spurious problem much less likely.
The model that we will use to estimate the short run relationship will be a dynamic ADL 5 model with the following form:. Since we have quarterly data, we start with an ADL 5 model. So, we end up with the following parsimonious model:. The output of the regression shows that the coefficients of the Δ INF t and Δ LGDP t-1 have a negative Thus, there is a negative relationship between inflation and GDP, as is expected to be found from the theory. So, we see that our residuals are well-behaved, since they are consistent with no serial correlation and homoskedasticity, but they do dissertation economic growth follow the normal dissertation economic growth. The aim of dissertation economic growth study was to test the relationship between inflation and GDP in the United Kingdom.
Before we estimate this relationship we checked the order of integration of the variables. Both variables were non-stationary and integrated of order 1 I 1. The Engle-Granger test shows that they are also not co-integrated.
Therefore, dissertation economic growth, we cannot say anything about the long run equilibrium. Thus, we used a dynamic short-run model, which consists only of stationary variables and hence there are not any spurious problems. The residuals of this model are well-behaved and their properties are consistent with the assumptions of Gauss Markov.
Finally, dissertation economic growth, we can see that there is a negative relationship between inflation and GDP in the United Kingdom, at least in the short run, which is consistent with most of the theories that have been developed throughout the years.
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Choose a Writer How We Recruit Become a Writer Apply Now Writing Vacancies How to Apply Rewards and Benefits Recruitment Process Vacancies FAQ. Manage Orders Sign Out. Table 4 Dependent variable: ΔLGDP Regressors Coefficients Standard error t-statistic p-value Constant 0.
Test Test Statistic p -value Normally distributed Bera-Jarque 7. Barro R. Louis Review, Vol, dissertation economic growth. Bruno, M. and Easterly, W. Louis, Vol. Ghosh A. and Phillips S. Ivory Research.
December The relationship dissertation economic growth inflation and economic growth GDP : an empirical analysis. The relationship between inflation and economic growth GDP : an empirical analysis [Internet]. com, Published
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Oct 04, · Think about it, you don’t want to get stuck halfway through the dissertation only to find out that there’s not enough economic research, and you should start from scratch. To save you from such a struggle, we have compiled a list of the best finance dissertation topics for you to choose from Analyzing the economic significance of labor organizations in the UK. An in-depth analysis of the History of Economic Thought. The deficiencies of the economic systems of the former Soviet Union satellite states. Explaining the way a neoliberal reform is implemented. The correlation between food policy, economics, and world hunger issues Exploring the world’s economic situation and opportunities for growth and development. An analysis of the geography of development. A review of human development based on recent progress and future prospects. Studying human development, economic policy and income equity in developing countries
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