Main Article Content
Abstract
Purpose ─ This research examines the effects of Myanmar's domestic economic reform measures on its economic growth, highlighting the impact of public sector governance and human capital development.
Methods ─ The Toda-Yamamoto test on Granger causality and the vector error correction model are employed to examine the impact of Myanmar's domestic economic reform measures on its economic growth.
Finding ─ The results reveal that unidirectional causality existed, from public sector governance to economic growth and human capital development to economic growth. The vector error correction model revealed that public sector governance and human capital development had a long-term and positive relationship with economic growth from 2001 to 2019.
Implication ─ The study confirms that Myanmar's domestic economic reform measures contributed to its economic growth from 2001- 2019. These findings underpin the importance of continuing domestic economic reform, such as public sector governance and promoting human capital development, to achieve economic growth in the long run.
Originality ─ This paper contributes to existing literature by shedding light on the impact of public sector governance, human capital development, and public sector governance on Myanmar's economic growth.
Keywords
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References
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- Aslam, A. (2020). The hotly debate of human capital and economic growth: Why institutions may matter? Quality & Quantity, 54(4), 1351–1362. https://doi.org/10.1007/s11135-020-00989-5
- Barro, R. (1996). Determinants of economic growth: A cross-country empirical study. NBER Working Paper, 5698.
- de Mello, L. (1999). Foreign direct investment-led growth: Evidence from time series and panel data. Oxford Economic Papers, 51(1), 133–151. https://doi.org/10.1093/oep/51.1.133
- Grossman, G. M., & Helpman, E. (1991). Trade, knowledge spillovers and growth. European Economic Review, Vol.35(Issues 2-3), 517–526.
- Howitt, P. (2010). Endogenous growth theory. In S. N. Durlauf & L. E. Blume (Eds.), Economic Growth (pp. 68–73). Palgrave Macmillan UK. https://doi.org/10.1057/9780230280823_10
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- Said, S., E., & Dickey, D., A. (1984). Testing for unit roots in autoregressive-moving average models of unknown order. Biometrika, Vol.71(Issue 3), 599–607.
- Siddiqui, A., & Rehman, A. U. (2017). The human capital and economic growth nexus: In East and South Asia. Applied Economics, 49(28), 2697–2710. https://doi.org/10.1080/00036846.2016.1245841
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- Toda, H. Y., & Yamamoto, T. (1995). Statistical inference in vector autoregressions with possibly integrated processes. Journal of Econometrics, 66(1–2), 225–250. https://doi.org/10.1016/0304-4076(94)01616-8
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- Uddin, M. A., Ali, M. H., & Masih, M. (2021). Institutions, human capital and economic growth in developing countries. Studies in Economics and Finance, 38(2), 361–383. https://doi.org/10.1108/SEF-10-2019-0407
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References
Acemoglu, D., Gallego, F. A., & Robinson, J. A. (2014). Institutions, human capital, and development. The Annual Review of Economics, 6, 875–912. https://doi.org/10.1146/annurev-economics-080213-041119
Ajmani, M., Joshi, P. K., Kishore, A., & Roy, D. (2018, January 6). How did sanctions impact Myanmar. The Diplomat. https://thediplomat.com/2018/01/how-did-sanctions-impact-myanmar/
Amiri, A., & Ventelou, B. (2012). Granger causality between total expenditure on health and GDP in OECD: Evidence from the Toda–Yamamoto approach. Economics Letters, 116(3), 541–544. https://doi.org/10.1016/j.econlet.2012.04.040
Asghar, N., Qureshi, S., & Nadeem, M. (2015). Institutional quality and economic growth: Panel ARDL analysis for selected developing economies of Asia. South Asian Studies, 30(2), 381–404.
Aslam, A. (2020). The hotly debate of human capital and economic growth: Why institutions may matter? Quality & Quantity, 54(4), 1351–1362. https://doi.org/10.1007/s11135-020-00989-5
Barro, R. (1996). Determinants of economic growth: A cross-country empirical study. NBER Working Paper, 5698.
de Mello, L. (1999). Foreign direct investment-led growth: Evidence from time series and panel data. Oxford Economic Papers, 51(1), 133–151. https://doi.org/10.1093/oep/51.1.133
Grossman, G. M., & Helpman, E. (1991). Trade, knowledge spillovers and growth. European Economic Review, Vol.35(Issues 2-3), 517–526.
Howitt, P. (2010). Endogenous growth theory. In S. N. Durlauf & L. E. Blume (Eds.), Economic Growth (pp. 68–73). Palgrave Macmillan UK. https://doi.org/10.1057/9780230280823_10
Johansen, S., & Juselius K. (1990). Maximum likelihood estimation and inference on cointegration—With applications to the demand for money. Oxford Bulletin of Economics and Statistics, 52(2), 169–210. https://doi.org/10.1111/j.1468-0084.1990.mp52002003.x
Kaufmann, D., Kraay, A., & Mastruzzi, M. (2010). The worldwide governance indicators: Methodology and analytical issues. World Bank Policy Research Working Paper, 5430. http://documents1.worldbank.org/curated/en/630421468336563314/pdf/WPS5430.pdf
Khan, M. T. I., Ali, Q., & Ashfaq, M. (2018). The nexus between greenhouse gas emission, electricity production, renewable energy and agriculture in Pakistan. Renewable Energy, 118, 437–451. https://doi.org/10.1016/j.renene.2017.11.043
Kraipornsak, P. (2018). Good governance and economic growth: An investigation of Thailand and selected Asian countries. Eurasian Journal of Economics and Finance, 6(1), 93–106. https://doi.org/10.15604/ejef.2018.06.01.009
Kubo, K. (2014). Myanmar's non-resource export potential after the lifting of economic sanctions: A gravity model analysis. Asia-Pacific Development Journal, 21(1), 1–22. https://doi.org/10.18356/df0bf4ec-en
Lee, J.-W., & Ruth, F. (2010). Human capital accumulation in emerging Asia, 1970–2030. ADB Economics Working Papers, WPS102409, 34.
Lütkepohl, H. (2005). New introduction to multiple time series analysis. New York : Springer.
Mankiw, N. G., Romer, D., & Weil, D. N. (1992). A contribution to the empirics of economic growth. The Quarterly Journal of Economics, 107(2), 407–437.
Maung Thawnghmung, A., & Sarno, P. (2006). Myanmar impasses: Alternatives to isolation and engagement? Asian Journal of Political Science, 14(1), 40–63. https://doi.org/10.1080/02185370600832497
Narayan, P. K., & Smyth, R. (2006). What determines migration flows from low-income to high-income countries? An empirical investigation of Fiji–U.S. migration 1972–2001. Contemporary Economic Policy, 24(2), 332–342. https://doi.org/10.1093/cep/byj019
Ngo, M. N., & Nguyen, L. D. (2020). Economic growth, total factor productivity, and institution quality in low-middle income countries in Asia. The Journal of Asian Finance, Economics and Business, 7(7), 251–260. https://doi.org/10.13106/JAFEB.2020.VOL7.NO7.251
Nwe, K., Kawata, K., & Yoshida, Y. (2018). Recent political change in Myanmar and its impact on her economic growth. Asian Economic Journal, 32(1), 39–54. https://doi.org/10.1111/asej.12141
OECD. (2013). Multi-dimensional review of Myanmar: Volume 1. Initial Assessment, OECD Development Pathways. OECD Publishing.
Payne, J. E. (2009). On the dynamics of energy consumption and output in the US. Applied Energy, 86(4), 575–577. https://doi.org/10.1016/j.apenergy.2008.07.003
Philips, P., C. B., & Perron, P. (1987). Testing for a unit root in time series regression. Yale University Cowles Foundation Discussion Paper, No.795-R.
Said, S., E., & Dickey, D., A. (1984). Testing for unit roots in autoregressive-moving average models of unknown order. Biometrika, Vol.71(Issue 3), 599–607.
Siddiqui, A., & Rehman, A. U. (2017). The human capital and economic growth nexus: In East and South Asia. Applied Economics, 49(28), 2697–2710. https://doi.org/10.1080/00036846.2016.1245841
Sijabat, R. (2022). The association of economic growth, foreign aid, foreign direct investment and gross capital formation in Indonesia: Evidence from the Toda–Yamamoto approach. Economies, 10(93). https://doi.org/ 10.3390/economies10040093
Taguchi, H., & Lar, N. (2015). FDI, industrial upgrading and economic corridor in Myanmar (MPRA Paper 64411). University Library of Munich, Germany. https://ideas.repec.org/p/pra/mprapa/64411.html
Toda, H. Y., & Yamamoto, T. (1995). Statistical inference in vector autoregressions with possibly integrated processes. Journal of Econometrics, 66(1–2), 225–250. https://doi.org/10.1016/0304-4076(94)01616-8
Tran, O. K. T., Le Dinh, H., & Nguyen, H. V. A. (2021). Role of institutional quality in economic development: A case study of Asian countries. Problems and Perspectives in Management, 19(2), 357–369. https://doi.org/10.21511/ppm.19(2).2021.29
Uddin, M. A., Ali, M. H., & Masih, M. (2021). Institutions, human capital and economic growth in developing countries. Studies in Economics and Finance, 38(2), 361–383. https://doi.org/10.1108/SEF-10-2019-0407
World Bank. (2019). Myanmar: Economic Transition amid Conflict.
World Bank. (2022a). Learning in Myanmar, Pre and Post-Covid-19. http://hdl.handle.net/10986/37683
World Bank. (2022b). Myanmar Economic Monitor. World Bank. https://pubdocs.worldbank.org/en/597471658359366101/July-MEM-2022-Final.pdf