Nutrition and economic growth in South Africa: A momentum threshold autoregressive (MTAR) approach
Purpose: 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.
|Date of creation:||14 Jan 2014|
|Date of revision:|
|Contact details of provider:|| Postal: Ludwigstraße 33, D-80539 Munich, Germany|
Web page: https://mpra.ub.uni-muenchen.de
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Fan, Shenggen & Pandya-Lorch, Rajul, 2012. "Reshaping agriculture for nutrition and health: An IFPRI 2020 book," IFPRI books, International Food Policy Research Institute (IFPRI), number 2020 Conference Book.
- Shelley, Gary L. & Wallace, Frederick H., 2011.
"Further evidence regarding nonlinear trend reversion of real GDP and the CPI,"
Elsevier, vol. 112(1), pages 56-59, July.
- Shelley, Gary & Wallace, Frederick, 2010. "Further evidence regarding nonlinear trend reversion of real GDP and the CPI," MPRA Paper 24962, University Library of Munich, Germany.
- Emmanuel Skoufias & Vincenzo Di Maro & Teresa González-Cossío & Sonia Rodríguez Ramírez, 2009. "Nutrient consumption and household income in rural Mexico," Agricultural Economics, International Association of Agricultural Economists, vol. 40(6), pages 657-675, November.
- Rasmus Heltberg, 2009. "Malnutrition, poverty, and economic growth," Health Economics, John Wiley & Sons, Ltd., vol. 18(S1), pages S77-S88, April.
- Bruce E. Hansen, 2000.
"Sample Splitting and Threshold Estimation,"
Econometric Society, vol. 68(3), pages 575-604, May.
- Fogel, Robert W, 2004. "Health, Nutrition, and Economic Growth," Economic Development and Cultural Change, University of Chicago Press, vol. 52(3), pages 643-58, April.
- Behrman, Jere R & Deolalikar, Anil B, 1989. "Is Variety the Spice of Life? Implications for Calorie Intake," The Review of Economics and Statistics, MIT Press, vol. 71(4), pages 666-72, November.
- Thomas, Duncan & Strauss, John, 1997.
"Health and wages: Evidence on men and women in urban Brazil,"
Journal of Econometrics,
Elsevier, vol. 77(1), pages 159-185, March.
- Thomas, D. & Strauss, J., 1997. "Health and Wages: Evidence on Men and Women in Urban Brazil," Papers 97-05, RAND - Reprint Series.
- Johansen, Soren, 1991. "Estimation and Hypothesis Testing of Cointegration Vectors in Gaussian Vector Autoregressive Models," Econometrica, Econometric Society, vol. 59(6), pages 1551-80, November.
- Granger, C W J, 1969. "Investigating Causal Relations by Econometric Models and Cross-Spectral Methods," Econometrica, Econometric Society, vol. 37(3), pages 424-38, July.
- Richard Tiffin & P. J. Dawson, 2002. "The Demand for Calories: Some Further Estimates from Zimbabwe," Journal of Agricultural Economics, Wiley Blackwell, vol. 53(2), pages 221-232.
- Behrman, Jere R & Deolalikar, Anil B, 1987. "Will Developing Country Nutrition Improve with Income? A Case Study for Rural South India," Journal of Political Economy, University of Chicago Press, vol. 95(3), pages 492-507, June.
- Walter Enders & Selahattin Dibooglu, 2001. "Long-Run Purchasing Power Parity with Asymmetric Adjustment," Southern Economic Journal, Southern Economic Association, vol. 68(2), pages 433-445, October.
- Ogundari, Kolawole & Abdulai, Awudu, 2013. "Examining the heterogeneity in calorie–income elasticities: A meta-analysis," Food Policy, Elsevier, vol. 40(C), pages 119-128.
- Beechey, Meredith & Österholm, Pär, 2008. "Revisiting the uncertain unit root in GDP and CPI: Testing for non-linear trend reversion," Economics Letters, Elsevier, vol. 100(2), pages 221-223, August.
- Stiglitz, Joseph E, 1976. "The Efficiency Wage Hypothesis, Surplus Labour, and the Distribution of Income in L.D.C.s," Oxford Economic Papers, Oxford University Press, vol. 28(2), pages 185-207, July.
- Engle, Robert F & Granger, Clive W J, 1987.
"Co-integration and Error Correction: Representation, Estimation, and Testing,"
Econometric Society, vol. 55(2), pages 251-76, March.
- Engle, Robert & Granger, Clive, 2015. "Co-integration and error correction: Representation, estimation, and testing," Applied Econometrics, Publishing House "SINERGIA PRESS", vol. 39(3), pages 106-135.
- Svedberg, Peter, 1999. "841 Million Undernourished?," World Development, Elsevier, vol. 27(12), pages 2081-2098, December.
- Harris Neeliah & Bhavani Shankar, 2008. "Is nutritional improvement a cause or a consequence of economic growth? Evidence from Mauritius," Economics Bulletin, AccessEcon, vol. 17(8), pages 1-11.
- Deolalikar, Anil B, 1988. "Nutrition and Labor Productivity in Agriculture: Estimates for Rural South India," The Review of Economics and Statistics, MIT Press, vol. 70(3), pages 406-13, August.
- Salois, Matthew & Tiffin, Richard & Balcombe, Kelvin, 2010. "Calorie and Nutrient Consumption as a Function of Income: A Cross-Country Analysis," MPRA Paper 24726, University Library of Munich, Germany.
- Ferda HALICIOGLU, 2012.
"The Demand for Calories in Turkey,"
Iktisat Isletme ve Finans,
Bilgesel Yayincilik, vol. 27(316), pages 93-108.
- Vecchi, Giovanni & Coppola, Michela, 2006.
"Nutrition and growth in Italy, 1861-1911: What macroeconomic data hide,"
Explorations in Economic History,
Elsevier, vol. 43(3), pages 438-464, July.
- Giovanni Vecchi & Michela Coppola, 2004. "Nutrition And Growth In Italy, 1861-1911 What Macroeconomic Data Hide," Working Papers in Economic History wh043101, Universidad Carlos III, Instituto Figuerola de Historia y Ciencias Sociales.
- Satoru Shimokawa, 2010. "Asymmetric Intrahousehold Allocation of Calories in China," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 92(3), pages 873-888.
- William E. Cole, 1971. "Investment in Nutrition as a Factor in the Economic Growth of Developing Countries," Land Economics, University of Wisconsin Press, vol. 47(2), pages 139-149.
- Ogundari, Kolawole, 2011. "Estimating Demand for Nutrients in Nigeria: A Vector Error Correction Model," MPRA Paper 28930, University Library of Munich, Germany.
- Enders, Walter & Siklos, Pierre L, 2001.
"Cointegration and Threshold Adjustment,"
Journal of Business & Economic Statistics,
American Statistical Association, vol. 19(2), pages 166-76, April.
- Tom Doan, . "ENDERSIKLOS: RATS procedure to perform Enders-Siklos test for cointegration with threshold effect," Statistical Software Components RTS00064, Boston College Department of Economics.
- Tom Doan, . "RATS programs to replicate Enders-Siklos(2001) JBES paper on threshold cointegration," Statistical Software Components RTZ00053, Boston College Department of Economics.
When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:52950. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Joachim Winter)
If references are entirely missing, you can add them using this form.