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    Energy economic expansion with production and consumption in BRICS countries
    (Elsevier Ltd, 2022-11-18) Hasan M
    Global energy demand for energy consumption is increasing day by day, and it seems complicated for most countries to meet energy demand with total energy production. In this regard, this study investigates the comparative impact of energy production and consumption on economic growth in the BRICS countries. This study conducts panel data modelling, more specifically, the fixed-effects model, random-effects, and panel FMOLS model, to find the impact of energy production and consumption on economic growth in the BRICS countries. This study finds that energy production and consumption significantly impact the economic development of the BRICS countries. More specifically, dry natural gas production and consumption, electricity generation and consumption, biofuel production, petroleum production, capital formation, and trade openness positively impact on economic growth, while coal production significantly and negatively impacts on economic growth. This research is of great significance to the economic integration of the BRICS economies.
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    Response to New Zealand's agricultural sector from economic growth and free trade in China : a computable general equilibrium analysis : a thesis presented in partial fulfilment of the requirements for the degree of Master of Arts in Economics at Massey University, Palmerston North, New Zealand
    (Massey University, 2011) Wallace, Michael John; Wallace, Michael John
    China’s growth performance over the last three decades has stood at a phenomenal nine percent per annum and shows little sign of abating despite challenging market conditions in recent times. With ever increasing demand and limited land availability this is set to have an increasing impact on New Zealand which has a comparative advantage in land-intensive agricultural products. Already this is observable in recent trade statistics. Using GTAP (global trade analysis project), a computable general equilibrium model, this research estimates the future effects of Chinese growth to New Zealand’s agricultural sectors and its economy in general. Almost all primary industries in New Zealand can expect to benefit from China’s growth, most notably wool and forestry. Modest gains in gross domestic product and economic welfare also benefit the country on the whole. Chinese growth also complements the well documented gains of the recently signed free trade agreement between the two nations.
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    Re-examining the effects of tax policy on economic growth
    (Massey University, 2010) Bosman, Willem
    Using a novel panel dataset of 65 countries for the period 1973-2000, this paper attempts to reconcile the conflicting evidence provided by the current literature on the effects of different tax categories on long-term economic growth. The effects of both top and average, personal and corporate income tax rates as well as the level of tax progressivity on growth are tested while controlling for other possible determinants of growth. The empirical results provide evidence for the distortionary effects of personal income taxes and tax progressivity on long run economic growth, but no robust evidence for any linear effect of corporate tax rates on long term economic growth is found. There is however, evidence for a non-linear effect of corporate taxation on economic performance. The sample splitting estimations also yield thresholds above which progressivity becomes harmful for growth but below which there is no significant effect. The thresholds associated with the respective decades seem to follow the average degree of progressivity rather closely and could be indicative of international tax competition.
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    Foreign direct investment and its impact on the New Zealand economy : cointegration and error correction modelling techniques : a thesis presented in partial fulfilment of the requirements for the degree of Doctor of Philosophy in Economics at Massey University, New Zealand
    (Massey University, 2004) Raguragavan, Jananee
    Ongoing globalisation has resulted in more liberalisation, integration, and competition among countries. An upshot of this has been higher levels of cross-border investment. Foreign direct investment (FDI), long considered an engine of growth, has led to widespread probe with its recent rapid spread. Nevertheless, while research on the contribution of FDI to host countries has concentrated heavily on the developed and developing economies, there has been a marked neglect of small, developed economies. This study proposes to focus on New Zealand, a country that falls within the latter category. The study seeks to verify econometrically the impact of FDI on the country through causality links with growth, trade, domestic investment and labour productivity. The analysis is based upon time-series data, the econometric techniques of single, autoregressive distributed lag (ARDL), and the multiple equations approach, vector error correction method (VECM). The study found that there have been substantial gains to the New Zealand economy. A positive effect of FDI on the variables mentioned above led to an improvement of the balance of payments through an increase in exports rather than in imports. Economic growth has mainly been achieved through FDI's impact on exports and domestic private investment. The dynamic innovation techniques indicated a bi-directional causality between FDI and the variables. The long-run causality, however, runs mainly from growth and labour productivity to FDI rather than in the opposite direction. Another noticeable feature is that New Zealand's regional agreement with Australia, Closer Economic Relations, has brought the country significant gains in terms of growth and development through FDI. Both the ARDL and VECM approaches suggest that for a small, developed country qualitative impacts are greater than quantitative ones. The policy implication is that maintaining sustainable economic growth with a positive domestic investment environment is vital for attracting foreign investors. New Zealand, while continuing to encourage inward FDI, should aim to channel it into 'innovative' tradable sectors. The challenge lies in providing the right kind of policy mix for this purpose.
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    A macroeconometric analysis of foreign aid in economic growth and development in least developed countries : a case study of the Lao People's Democratic Republic (1978-2001) : a dissertation presented in fulfilment of the requirements for the degree of Doctor of Philosophy in Economics at Massey University, Palmerston North, New Zealand
    (Massey University. Department of Applied and International Economics, 2002) Xayavong, Vilaphonh
    Despite receiving large quantities of aid, many developing countries, especially the Least Developed Countries, have remained stagnant and became more aid-dependent. This grim reality provokes vigorous debate on the effectiveness of aid. This study re-examines the effectiveness of aid, focusing on the ongoing debate on the interactive effect of aid and policy conditionality on sustainable economic growth. A theoretical model of the aid-growth nexus was developed to explain why policy conditionality attached to aid may not always promote sustainable economic growth. Noticeable methodological weaknesses in the aid fungibility and aid-growth models have led to the construction of two macroeconometric models to tackle and reduce these weaknesses. The Lao People's Democratic Republic's economy for the 1978-2001 period has been used for a case study.It is argued that the quality of policy conditionality and the recipient country's ability to complete specified policy conditions are the main factors determining the effectiveness of aid. Completing the policy prescriptions contributes to a stable aid inflow. The aid-growth nexus model developed in this study shows that stable and moderate aid inflow boosts economic growth even when aid is fungible. However, failure to complete the policy conditionality owing to inadequate policy design and problems of policy mismanagement caused by lack of state and institutional capability in the recipient country triggers an unstable aid inflow. The model shows that unstable aid flows reduce capital accumulation and economic growth in the recipient country. These empirical findings reveal that policy conditionality propagated through the "adjustment programmes" has mitigated the side effects of aid fungibility and "Dutch disease" in the case of the Lao PDR. Preliminary success in implementing the policy conditions in the pre-1997 period led to a stable aid inflow and contributed to higher economic growth. This favourable circumstance, however, was impaired by unstable aid flow in the post-1997 period. The lack of state and institutional capacity in the Lao PDR and the inadequate policy design to deal with external shocks triggered the instability of aid inflow, which in turn exacerbated the negative effects of the Asian financial crisis on the Lao PDR's economy.