Determinants of Economic Growth in G20 Countries: A Panel Data Approach

TAŞ N., ÖNDER E., HEPŞEN A.

International Conference on Applied Business and Economics (ICABE) - NEW YORK, United States Of America, vol.1, no.1, pp.128

  • Publication Type: Conference Paper / Full Text
  • Volume: 1
  • Country: United States Of America
  • Page Numbers: pp.128
  • Istanbul University Affiliated: Yes

Abstract

During last 10 years some G20 countries had economic instability. They have short and long
term challenges such as unemployment, population ageing, globalization etc. In this study it is
aimed to analyze macroeconomic indicators of G20 countries’ economic growth using panel
data  approach.  Static  linear  panel  data  models  were  used  for  determining  the  effects  of
independent  macro-economic  variables  on  gross  domestic  product  (GDP)  of  G20  countries
including  Argentina,  Australia,  Brazil,  Canada,  China,  France,  Germany,  India,  Indonesia,
Italy,  Japan,  Mexico,  Russia,  Saudi  Arabia,  South  Africa,  Republic  of  Korea,  Turkey,  the
United Kingdom  and  the  United  States  of  America.  While  dependent  variable  of  analyze  is
gross  domestic  product  (volume),  the  independent  variables  are  current  account  balance,
general  government  gross  debt,  general  government  revenue,  general  government  total
expenditure,  gross  national  savings,  inflation  (average  consumer  prices),  population,  total
investment, unemployment rate, volume of exports of goods and services, volume of imports
of  goods  and  services.  The  analysis  proposed  is  based  on  a  panel  data  (cross  sectional  time
series  data)  approach.  The  dataset  of  this  research  involves  19  of  G20  members  (cross
sectional  units).  The  effects  of  11  macroeconomic  indicators  on  gross  domestic  product
volume were examined by using panel data series. The findings of this research are especially
useful  for  G20  countries  for  developing  convenient  economic  strategies.  On the  other  hand,
the upgrade of the G20 to the level of the heads of state and government was one of the major
institutional  outcomes  of  the  global  financial  and  economic  crisis  (the  2007  U.S.  Subprime
Financial  Crisis).  The  paper  also  empirically  analyzes  the  negative  impacts  of  recent  crisis
into G20 countries’ economic growth during the 2002–2012 periods (time series).
Keywords:  G20  Counties,  Financial  Crisis,  Macro  Economic  Parameters,  Panel  Data
Analysis, Economic Growth