Energy Consumption and Economic Growth Nexus in Pakistan

The study explored the link between energy consumption and economic growth in Pakistan covering the period from 1980 to 2018. This study used an augmented production function and combined the two neo-classical and ecological points. Most important is that this study used three different proxies of energy to check whether the relationship is proxy specific or not in Pakistan. Furthermore, there are some controls in terms of trade and foreign direct investment to check the robustness of the relationship. The time series approaches as augmented dickey fuller (ADF) unit root test and ARDL bound test approach has applied. The results indicated the long-run positive relationship between energy and growth in Pakistan and the relationship is not proxy specific. Therefore, it has suggested enhancing energy efficient policies, better resource allocation for energy supply.

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Stock Market Development and Economic Growth in Malaysia: A Revisit from 1982 to 2014

Journal of Social Transformation and Regional Development ◽

10.30880/jstard.2020.02.01.001 ◽

2020 ◽

Vol 2 (1) ◽

Author(s):

Lee Kok Fong ◽

◽

Mori Kogid ◽

Jaratin Lily ◽

◽

...

Keyword(s):

Economic Growth ◽

Stock Market ◽

Annual Data ◽

Stock Market Development ◽

Long Run ◽

Augmented Dickey Fuller ◽

Financial Decision ◽

Stationarity Test ◽

Bound Test ◽

The Relationship

The study examines the relationship between the development of the stock market and economic growth in Malaysia using annual data from 1982 to 2014. The development of the stock market represented three indicators, namely the turnover ratio, the shares value traded ratio and the market capitalization ratio. Augmented Dickey-Fuller stationarity test was carried outprior to the use of a bound test approach for co-integration and causality testing. The findings of the co-integration analysis showed that there is evidence of a long-run relationshipbetween economic growth andthe development of the stock market. Further examination of the causal relationship showed proof of the short-runinteraction between economic growth andthe development of the stock market. These findings may be of importance to policymakers in formulating growth policy and financial decision-making by investors.

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Income Inequality, Economic Growth and Carbon Dioxide Emissions Nexus: Empirical Evidence from Ethiopia

10.21203/rs.3.rs-288851/v1 ◽

2021 ◽

Author(s):

Shemelis Kebede Hundie

Keyword(s):

Economic Growth ◽

Income Inequality ◽

Unit Root ◽

Carbon Dioxide Emissions ◽

Unit Root Test ◽

Policy Implications ◽

Kuznets Curve ◽

Low Carbon ◽

Long Run ◽

The Relationship

Abstract The relationship between income inequality, economic growth and CO2 emissions is ambiguous both theoretically and empirically. Hence, this study examines the link between income inequality and CO2 emissions in Ethiopia for time span covering 1979–2014 using ARDL bounds test and DOLS approach to cointegration. The Zivot-Andrews unit root test and Clemente-Montanes-Reyes unit root test reveal that some of the variables under consideration are stationary at level while others become stationary after first differencing. Both ARDL and DOLS approaches confirm that there is a long-run relationship among the series during the study period. The long-run empirical results show that a 1% increase in economic growth accounts for a 1.05% increase in CO2 emissions while a 1% increase in economic growth squared reduces CO2 emissions by 0.11%. The U-test result reveals that the relationship between CO2 emissions and economic growth confirms existence of the Environmental Kuznets Curve hypothesis. The effect of income inequality on CO2 is not robust to alternative estimation techniques; it is statistically insignificant under the ARDL estimation, but DOLS estimates show that a 1% increase in income inequality increases CO2 emissions by 0.21% in the long-run during the study period. In the long-run a 1% rise in urbanization, population size, energy intensity and industrialization each positively contribute to environmental degradation in Ethiopia by 0.38%, 0.22%, 0.07% and 0.11% respectively. Results from the Toda-Yamamoto Granger causality show a bidirectional causal relationship between CO2 emissions and all other variables except economic growth. CO2 emissions granger causes economic growth with no feedback effect. Results suggested important policy implications in the light of achieving its 2030 targets of low-carbon economy for Ethiopia.

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The relationship between energy consumption and economic growth in Malaysia: ARDL bound test approach

10.1063/1.4968159 ◽

2016 ◽

Author(s):

Radzuan Razali ◽

Habib Khan ◽

Afza Shafie ◽

Abdul Rahman Hassan

Keyword(s):

Economic Growth ◽

Energy Consumption ◽

Bound Test ◽

The Relationship ◽

Ardl Bound Test

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Investigating in the J-curve phenomenon in Tunisia- ARDL bound test approach

Journal of Economics and Behavioral Studies ◽

10.22610/jebs.v12i5(j).3077 ◽

2020 ◽

Vol 12 (5(J)) ◽

pp. 23-32

Author(s):

Elham Shubaita ◽

Muhammad Mar’i ◽

Mehdi Seraj

Keyword(s):

Trade Balance ◽

Real Exchange Rates ◽

Distributed Model ◽

Long Run ◽

J Curve ◽

Short Run ◽

Using Data ◽

Bound Test ◽

The Relationship ◽

Ardl Bound Test

This paper investigates the relationship between trade balance, real exchange rates, and incomes in Tunisia by adopting the autoregressive distributed model (ARDL) by using data over the period of 1980 to 2018. We also used the bound test cointegration between variables at a 10% significant level. Our findings show that the Tunisia economy does not match the Marshall-Lerner condition in the long run, that provides an accurate description of the particular situation for which a country currency devaluation or depreciation its currency under both fixed or floating regime is predicted to enhance the trade balance of a country, which means there is no j-curve phenomenon in the long run, which tries to differentiate between the change of short-run and long-run effects in the change of exchange rate on the trade balance. Our findings match the Marshall-Lerner condition in the short run and can confirm the existing j-curve in the case of Tunisia.

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The Relationship between Tax Revenue and Economic Growth in Nepal: A Co-integration Approach

PYC Nepal Journal of Management ◽

10.3126/pycnjm.v11i1.35916 ◽

2018 ◽

Vol 11 (1) ◽

pp. 28-36

Author(s):

Gautam Maharjan

Keyword(s):

Economic Growth ◽

Error Correction ◽

Unit Root ◽

Unit Root Test ◽

Error Correction Model ◽

Series Data ◽

Tax Revenue ◽

Correction Model ◽

The Impact ◽

The Relationship

The main objective of this paper is to examine the relationship between tax revenue and economic growth in Nepal. The 43 years' annual time series data from 1974/75 to 2016/17 of GDP, tax revenue and nontax revenue have been used to test the causal relationship of the variables. A unit root test, Engle-Granger’s co-integration and Error Correction Model have been applied for the data analysis. The variables have been found stationary after first differencing I(1) when Augmented Dickey-Fuller unit root test is employed. From Engel-Granger test, it has been found that the variables are co-integrated. The short-term coefficients are not significant, however error correction term (ECT) is significant and contains a negative sign in the error correction model (ECM). It validates the ECM model. The ECT has shown that the annual speed of adjustment from disequilibrium to equilibrium is 34.3 percent. So far as the relationship is concerned, there is a long run relationship between tax revenue and economic growth in Nepal controlling the non-tax revenue. The impact of tax revenue on economic growth could be a good impetus for the policy maker and planner to increase the collection of revenue for the country.

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Does Financial Inclusion Promote Human Development? Evidence from India

Jindal Journal of Business Research ◽

10.1177/22786821211045180 ◽

2021 ◽

pp. 227868212110451

Author(s):

Neha Arora ◽

Naresh Kumar

Keyword(s):

Human Development ◽

Financial Inclusion ◽

Banking Services ◽

Indian Economy ◽

Long Run ◽

Speed Up ◽

Bound Test ◽

Hierarchy Process ◽

The Relationship ◽

Ardl Bound Test

The present study investigates the relationship between Financial Inclusion Index (FII) and Human Development Index (HDI) of Indian economy. The study developed FII for the Indian economy from 1991 to 2020 by using the dimensions of banking penetration, banking availability and usage of banking services. The well-known techniques of Analytical Hierarchy Process (AHP) and Technique of Preference by Similarity to Ideal Solution (TOPSIS) is used to develop FII. The ARDL bound test confirms the existence of a long-run relationship between financial inclusion and human development. Granger non-causality confirms the existence of bidirectional causality between financial inclusion and human development. As financial inclusion acts as a key for human development, government should adopt policies to speed up the financial inclusion process in India.

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ANALISIS HUBUNGAN PENDAPATAN WISATAWAN DAN HARGA PARIWISATA TERHADAP PERMINTAAN PARIWISATA DENGAN VECM

E-Jurnal Matematika ◽

10.24843/mtk.2016.v05.i02.p120 ◽

2016 ◽

Vol 5 (2) ◽

pp. 44

Author(s):

MERARY SIANIPAR ◽

NI LUH PUTU SUCIPTAWATI ◽

KOMANG DHARMAWAN

Keyword(s):

Unit Root ◽

Unit Root Test ◽

Cointegration Test ◽

Tourism Demand ◽

Long Run ◽

Negative Effect ◽

Short Run ◽

The Relationship ◽

Positive Effect

Tourism demand is focused on estimating variables which influence tourist visit. The tourism demand that we discuss on this research is the tourism demand to Bali of the major tourism-generating country was Australia. The aim of this research is to analyze the relationship between tourist income and tourism price to tourism demand using VECM. VECM requires that the variables in the model must be stationary and fulfilled a cointegration condition. In order to make it valid, the stationarity of variables in the model have to be checked using ADF unit root test. In additon, cointegration between these variables are examined using Johansen’s cointegration test. The results of ADF unit root test show that indicated the tourist income, the tourism price and the tourism demand for Australia data are stationary in first lag or I(1). Cointegration test shows that all variables are cointegrated, i.e. have a long-run relationship. In the long-run, the tourist income and tourism price give positive effect to the tourism demand. This means, the increase of tourist income and tourism price will contribute to the increase in tourism demand. In addition, in the short-run, the tourist income and the tourism price give negative effect to the tourism demand. This means, the increase of tourist income and tourism price will contribute to the decrease in tourism demand.

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The impact of telecommunication revenue on economic growth: evidence from Ghana

African Journal of Economic and Management Studies ◽

10.1108/ajems-10-2011-0076 ◽

2014 ◽

Vol 5 (2) ◽

pp. 195-208 ◽

Cited By ~ 4

Author(s):

Francis Atsu ◽

Charles Agyei ◽

William Phanuel Darbi ◽

Sussana Adjei-Mensah

Keyword(s):

Economic Growth ◽

Unit Root Test ◽

Policy Makers ◽

Correction Model ◽

Content Type ◽

Long Run ◽

Telecommunication Infrastructure ◽

Augmented Dickey Fuller ◽

The Impact ◽

Practical Implications

Purpose – The purpose of this paper is to investigate the long-run impact of telecommunications revenue and telecommunications investment on economic growth of Ghana for the time horizon 1976-2007. Design/methodology/approach – The paper uses the Augmented Dickey Fuller and Phillips Perron unit root test to explore the stationarity property of the variables and the Engle-Granger residual-based test of cointegration to model an appropriate restricted error correction model. Findings – The outcome of the analysis produced mixed results. Telecommunications revenue does not contribute significantly whilst telecommunications investment does. Practical implications – Policy makers will have to deal with a conundrum; while designing targeted policies that will attract more telecommunication investment in order to maximize the corresponding revenues and the economic growth it brings in its wake, they must at the same time find ways and resources to grow the economy to a point or threshold where revenue from telecommunications can have the much needed impact on their economies. Originality/value – The study is one of the first that has investigated the line of causality between telecommunication revenue and economic growth unlike previous research that mainly focused on the impact of telecommunication infrastructure on economic development.

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Causal Relationship between Foreign Direct Investment and Economic Growth in Nigeria: 1970-2013

International Journal of Economics and Finance ◽

10.5539/ijef.v7n11p230 ◽

2015 ◽

Vol 7 (11) ◽

pp. 230 ◽

Cited By ~ 2

Author(s):

Uwazie I. U. ◽

Igwemma A. A. ◽

Nnabu Bernard Eze

Keyword(s):

Economic Growth ◽

Foreign Direct Investment ◽

Unit Root ◽

Direct Investment ◽

Developing Economies ◽

Unit Root Test ◽

Annual Data ◽

Policy Reforms ◽

Causality Test ◽

Long Run

Foreign direct investment is presumed to play immense role in economic growth in both developed and developing economies. This assumption has motivated the army of studies to actually determine the nexus between foreign direct investment and economic growth in Nigeria. But these studies were not unified on the direction of the causation, hence the need for the study. To effectively analyze the result, the study employs vector error correction model method of causality to analyze the annual data for the periods of 1970 to 2013. The Augmented Dickey-Fuller (ADF) unit root test show presence of unit root at level but stationary after first difference. The Johansen cointegration test confirms that the variables are cointegrated while the granger causality test affirms that foreign direct investment and economic growth reinforce each other in the short run in Nigeria. Also, it is reported that foreign direct investment granger cause economic growth both in the short and long run in Nigeria. Based on these findings, the study advocates the adoption of aggressive policy reforms to boost investors’ confidence and promotion of qualitative human capital development to lure FDI into the country. It also suggests the introduction of selective openness to allow only the inflow of FDI that have the capacity to spillover to the economy. These will attract FDI and boost economic growth in Nigeria.

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