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Economic Growth and Total Factor Productivity in Lebanon

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  • Wadad Saad

Abstract

This study investigates empirically the determinants of economic growth and total factor productivity in Lebanon over the period 1980-2014. To do so, we firstly estimate the total factor productivity in a growth accounting framework. Secondly, an Autoregressive Distributed Lag (ARDL) modeling approach has been applied to examine the relationship between economic growth and some macroeconomic variables such as foreign direct investment, openness, claims on private sector, and official development assistance. Then we consider modeling the effects of these macroeconomic determinants on TFP through an ARDL model. Findings of the regression analysis suggest the presence of a statistically significant relationship between economic growth and the variables involved in this study except for claims on private sector which appears to be insignificant. The results of TFP model show a significant relationship with claims on private sector and openness on one hand and insignificant link with the direct foreign investment and official development assistance on the other hand.

Suggested Citation

  • Wadad Saad, 2017. "Economic Growth and Total Factor Productivity in Lebanon," International Journal of Economics and Finance, Canadian Center of Science and Education, vol. 9(2), pages 159-171, February.
    • Handle: RePEc:ibn:ijefaa:v:9:y:2017:i:2:p:159-171
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    Cited by:

    1. Bannor, Frank & Dikgang, Johane & Gelo, Dambala, 2021. "Is climate variability subversive for agricultural total factor productivity growth? Long-run evidence from sub-Saharan Africa," MPRA Paper 107590, University Library of Munich, Germany.
    2. Wolassa L. Kumo, 2022. "Working Paper 362 - Economic Growth, Total Factor Productivity and Output Gap in Sierra Leone," Working Paper Series 2488, African Development Bank.

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    More about this item

    Keywords

    economic growth; total factor productivity; autoregressive distributed lag model; capital stock;
    All these keywords.

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

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