Nutrition and economic growth in South Africa: A momentum threshold autoregressive (MTAR) approach
AbstractPurpose: This purpose of our paper is to examine asymmetric co-integration effects between nutrition and economic growth for annual South African data from the period 1961-2013. Design/methodology/approach: We deviate from the conventional assumption of linear co-integration and pragmatically incorporate asymmetric effects in the framework through a fusion of the momentum threshold autoregressive and threshold error correction (MTAR-TEC) model approaches, which essentially combines the adjustment asymmetry model of Enders and Silkos (2001); with causality analysis as introduced by Granger (1969); all encompassed by/within the threshold autoregressive (TAR) framework, a la Hansen (2000). Findings: The findings obtained from our study uncover a number of interesting phenomena for the South Africa economy. Firstly, in coherence with previous studies conducted for developing economies, we establish a positive relationship between nutrition and economic growth with an estimated income elasticity of nutritional intake of 0.15. Secondly, we find bi-direction causality between nutrition and economic growth with a stronger causal effect running from nutrition to economic growth. Lastly, we find that in the face of equilibrium shocks to the variables, policymakers are slow to responding to deviations of the variables from their co-integrated long run steady state equilibrium. Originality/value: In our study, we make a novel contribution to the literature by exploring asymmetric modelling in the correlation between nutrition intake and economic growth for the exclusive case of South Africa.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 52950.
Date of creation: 14 Jan 2014
Date of revision:
Nutrition; Economic growth; Threshold co-integration; Asymmetric causality; South Africa;
Find related papers by JEL classification:
- C12 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Hypothesis Testing: General
- C13 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Estimation: General
- E20 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - General (includes Measurement and Data)
- I15 - Health, Education, and Welfare - - Health - - - Health and Economic Development
This paper has been announced in the following NEP Reports:
- NEP-AFR-2014-01-24 (Africa)
- NEP-ALL-2014-01-24 (All new papers)
- NEP-GRO-2014-01-24 (Economic Growth)
- NEP-MAC-2014-01-24 (Macroeconomics)
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