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Comparative Approach of Economic Growth Engines (Senegal vs. Jordan) using Granger Causality Test

Author

Listed:
  • Cyril Manga

    (Cheikh Anta Diop University of Dakar, Senegal)

  • Sufyan Qudah

    (Dunarea de Jos University of Galati, Romania and Embassy of Jordan in Romania)

  • Alexandru Capatina

    (Dunarea de Jos University of Galati, Romania)

Abstract

The purpose of this paper is to analyze the causality between eight purposefully selected variables and the economic growth in two countries (Senegal and Jordan) and to assess the relationship of these variables for the period 1990 to 2020. A time-series econometric technique (Granger causality) has been applied to test the hypothesis of the economic growth pillars in a comparative approach. The dependent variable in the model is the economic growth, measured by the GDP per capita. The eight variables which influence economic growth engines in the target countries for this study (Senegal and Jordan) are: gross fixed capital formation (% of GDP), gross capital formation (% of GDP), population aged 15-64 (% of total population), net official development assistance and official aid received (foreign aid), agriculture added value, industry added value, volume of imports and volume of exports. The results revealed the impact of economic growth drivers on GDP per capita in each country and provide governmental decision- makers valuable insights on finding the optimal balance between the macroeconomic indicators leading to economic growth.

Suggested Citation

  • Cyril Manga & Sufyan Qudah & Alexandru Capatina, 2022. "Comparative Approach of Economic Growth Engines (Senegal vs. Jordan) using Granger Causality Test," REVISTA DE MANAGEMENT COMPARAT INTERNATIONAL/REVIEW OF INTERNATIONAL COMPARATIVE MANAGEMENT, Faculty of Management, Academy of Economic Studies, Bucharest, Romania, vol. 23(1), pages 189-201, March.
    • Handle: RePEc:rom:rmcimn:v:23:y:2022:i:1:p:189-201
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    References listed on IDEAS

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    More about this item

    Keywords

    economic growth; foreign aid; GDP; international relations; Granger causality;
    All these keywords.

    JEL classification:

    • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence

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