The study of Factors Affecting the Economic Growth of Group D8 (8 Islamic Developing Countries)

Eidouzahi, Emambakhsh; Mohebbi, Mohammad; Zeraatkish, Seyed Yaghoob

doi:10.30473/egdr.2023.66202.6636

Document Type : ORIGINAL ARTICLE

Authors

¹ Ph.D. Student, Department of Economics, Qeshm Branch, Islamic Azad University, Qeshm, Iran

² Assistant Professor, Department of Economics, Faculty of Economics and Management, Hormozgan University, Iran.

³ Associate Professor, Department of Agricultural Economics, Faculty of Agriculture, Islamic Azad University, Science and Research Branch, Tehran, Iran.

https://doi.org/10.30473/egdr.2023.66202.6636

Abstract

Today, one of the most important economic goals of the countries of the world is to create the necessary grounds for economic growth and development, and the business environment is one of the main strategies to achieve this. The business environment is a political, institutional and behavioral environment that affects the efficiency and risks associated with economic activities and investments. Therefore, the aim of this research is to study of factors affecting the economic growth of Group D8.In the current study, the causative link among gross domestic product (GDP) annual growth rate (GDPr), corruption perceptions index (CPI), foreign direct investments (FDI) and ease of doing business index (DB) was empirically tested from 2005 to 2020 by using a panel data of D-8 Group comprise of 8 country include Bangladesh, Egypt, Indonesia, Iran, Malaysia, Nigeria, Pakistan, and Turkey. The PMG panel ARDL, heterogeneity, and cross-sectional dependence, used to investigate the long and short-term dynamic relationships. Findings from the Pesaran-Yamagata homogeneity test, Pesaran CD test, CIPS and ADF Fisher Chi-square (ADF Fisher) panel unit root tests and Kao panel cointegration test, indicated the panel time series data has heterogeneity and cross-sectional dependence, analyzed variables are stationary and cointegrated respectively. According to the panel ARDL estimation, the error-correction model coefficient (ECM) is negative and statistically significant for all examined countries. The value coefﬁcient of error term, indicate that the most of deviation of long-term equilibrium, corrected in the first year. The panel causality analysis results confirm, the bidirectional causality between GDPr and FDI; GDPr and DB; CPI and DB. In addition, the unilateral causality relationship found between CPI and GDPr, DB and FDI.

Keywords

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Economic Growth and Development Research

The study of Factors Affecting the Economic Growth of Group D8 (8 Islamic Developing Countries)

References

References

Volume 13, Issue 52
November 2023
Pages 46-31

The study of Factors Affecting the Economic Growth of Group D8 (8 Islamic Developing Countries)

References

References

Volume 13, Issue 52November 2023Pages 46-31

Volume 13, Issue 52
November 2023
Pages 46-31