Measuring the impact of some macroeconomic variables on economic stability indicators A comparative study of several countries from 1991 to 2021

Authors

  • Taha Benlahbib
  • Fairouz Cherayett

Keywords:

macroeconomic variables; economic stability; group of countries; panel.

Abstract

The purpose of this study was to assess the impact of some macroeconomic variables on indicators of economic stability for a sample of randomly selected countries from 1991 to 2021. To accomplish this, static and dynamic panel models were used to identify various theoretical concepts, previous studies, and the experimental approach. The Panel vector autoregressive (PVAR) model was estimated using the Generalized method of moments (GMM) for the economic growth indicator, and the PARDL model was estimated using the Pooled Mean Group (PMG) and Mean Group (MG) methods for the remaining indicators.

In addition to the preference for estimating MG over estimating PMG under certain conditions, the study concluded that there is a positive significant effect between the variables under study in the sample countries and that the fixed effects model is appropriate. Thus, macroeconomic variables can be said to positively affect indicators of economic stability by increasing economic growth rates and lowering general price levels in exchange for lower unemployment rates and thus achieving balance at the level of the balance of payments.

Downloads

Download data is not yet available.

References

Abbes Ons. (2017). L’impact de la spécialisation sur la stabilité économique: le cas des pays émergents / The impact of the specialization on the economic stability: the case of emerging countries. Electronic Thesis or Dissertation.

Alexandra Popescu. (2014, 12 01). Risk and Macroeconomic Policy Challenges: Recent Evidence from the Eurozone. France, Thèse de doctorat en Sciences Économiques, Eurozone: Ecole doctorale Sciences de l'homme et de la société (Orléans).

Alush Kryeziu. (2016). The Impact Of Macroeconomic Factors In Economic Growth. European Scientific Journal, vol.12( No.7), doi: 10.19044/esj.2016.v12n7p331, URL: http://dx.doi.org/10.19044/esj.2016.v12n7p331/

Aylin İdikut Özpençe. (2017). Economic Stability and Growth: The Case of Turkey. Research in Applied Economics, vol 09(n 03), doi:,10.5296/rae.v9i3.12041 URL: https://doi.org/10.5296/rae.v9i3.12041

Bournounais, R. (2018). Econometrie (10 ed.). Dunod.

Darin Youssef. (2015, 06 25). , Environnement institutionnel, stabilité bancaire et croissance économique dans les pays du Moyen-Orient et de l’Afrique du Nord. Université Sorbonne Paris Cité, Doctoral Thesis, France: École doctorale Érasme (Villetaneuse, Seine-Saint-Denis),.

Dielman. (1989). pooled Cross-Sectional and time series Data analysis. texas, USA: christian university.

Donatas Pilinkus & Vytautas Boguslauskas. (2009). The Short-Run Relationship between Stock Market Prices and Macroeconomic Variables in Lithuania: An Application of the Impulse Response Function. Inzinerine Ekonomika-Engineering Economics.

Edward F. Mark W. Frank. (2007). Estimation of nonstationary heterogeneous panels. The Stata Journal, vol. 7, N0. 02, 197-208, DOI: 10.1177/1536867X0700700204

Englama A. (2001). Unemployment: concepts and issues. CBN Bullion.

Gujarati, D., & Porter, D. C. (2008). Basic econometrics (fifth Edition ed.).

Hashemi , C., & Mokhtari , F. (2020). The Impact of Economic and Political Stability on Economic Growth in the Middle East and North African Countries (A benchmark study using Panel data for the period 1996-2017). Journal of the Economic Researcher, https://mpra.ub.uni- muenchen.de/103145/

Hattab , K. (2019-2020). he Impact of Oil Price Changes on Economic Growth in Algeria - Analytical Standard and Comparative Study with some Gulf Countries for the period 1980-2015. PhD thesis in Economic Sciences . Djelfa, Djelfa, Algeria: Faculty of Economics, Commercial and Management Sciences.

IMF. (1996). BALANCE OF PAYMENTS TEXTBOOK. Cataloging-in-Publication Data: International Monetary Fund.

Janine bremoud & alain geledan. (1981). dictionnaire economique et social . paris : hatier.

Levin, A., Lin, C.-F., & Chia-Shang, J. C. (2002). Unit root tests in panel. Journal of Econometrics(108), 1-24, https://doi.org/10.1016/S0304-4076(01)00098-7.

Micheal Sigmund & Robert Ferstl. (2017). Panel Vector Autoregression in R with the Package Panelvar. Electronic Journal, 1-49, DOI: 10.1016/j.qref.2019.01.001.

pedroni p. (2004). panel cointegration, Asymptotic and finite sample properties of pooled time series tests with an application to the PP hypothesis. Econometric theory, 3(20), 597-625, DOI: 10.1017/80266466604203073.

Pesaran .H, Y. Shin & R. Smith. (1999). , Pooled Mean Group Estimation of Dynamic Heterogeneous Panels. Journal of the American Statistical Association, 34-621, https://www.researchgate.net/profile/RonSmith9/publication/4724203_Pooled_Mean_Group_Estima tion_Of_Dynamic_Heterogeneous_Panels/links/0fcfd508ffbb348372000000/Pooled-Mean-Group- Estimation-Of-Dynamic-Heterogeneous-Panels.pdf

Pesaran. H, Shin. Y & Smith. R. J. (2001). Bound testing Approches to the analysisof level relationships. journal of applied econometrics, 16, DOI: 10.10028gae.616.

Shapero Edward. (1995). macroeconomic analysis. (3. edition, Ed.) new york, USA.

William Green. (2012). , « Econometric Analysis ». , 7th ed published by Pearson Education,: publishing as Prentice Hall .

Downloads

Published

2023-12-30

How to Cite

Benlahbib, T. ., & Cherayett, F. . (2023). Measuring the impact of some macroeconomic variables on economic stability indicators A comparative study of several countries from 1991 to 2021. The Journal of Contemporary Issues in Business and Government, 29(4), 148–165. Retrieved from https://cibgp.com/au/index.php/1323-6903/article/view/2638