Short- and Long-Run Causality Between Remittances and Economic Growth in MENA Countries: A Panel ARDL Approach

2021 ◽  
pp. 29-44
Author(s):  
Sami Ben Mim ◽  
Mohamed Sami Ben Ali
Keyword(s):  
Economic Growth ◽  
Mena Countries ◽  
Panel Ardl ◽  
Long Run ◽  
Ardl Approach

scholarly journals Public Debt and Economic Growth Nexus in the Euro Area: A Dynamic Panel ARDL Approach

2020 ◽  
Vol 67 (3) ◽  
pp. 291-31ö
Author(s):  
Themba Gilbert Chirwa ◽  
Nicholas M. Odhiambo
Keyword(s):  
Economic Growth ◽  
Euro Area ◽  
Public Debt ◽  
Negatively Associated ◽  
Panel Ardl ◽  
Long Run ◽  
Ardl Approach ◽  
Study Results ◽  
Short Run ◽  
The Relationship

This study investigates the relationship between public debt and economic growth using panel data from 10 European Countries. Using a panel ARDL approach, the results show that public debt, government consumption, and the real exchange rate are negatively associated with economic growth both in the short- and long-run. Furthermore, investment and the real interest rate were found to be positively associated with economic growth both in the short- and long-run. Inflation and trade openness were found to have mixed results: both were negatively associated with economic growth in the long run while in the short run the relationship was positive and consistent across groups with a few exceptions. Second, the study results also showed that debt is nonlinear at the 70% threshold only in the long-run while in the short run the results were consistently negative and across groups. The study results have significant policy implications for the Stability and Growth Pact of the Euro area. It is recommended that member states should ensure fiscal sustainability by balancing their fiscal budgets to effectively reduce the accumulation of public debt as well as implementing structural reforms that will improve the efficiency of investment as well as macroeconomic stability.

Does Technological Innovation Advance Environmental Sustainability in ASEAN Countries?

2021 ◽  
Vol 9 (3) ◽  
Author(s):  
Tabish Nawab ◽  
Muhammad Azhar Bhatti ◽  
Muhammad Atif Nawaz
Keyword(s):  
Economic Growth ◽  
Renewable Energy ◽  
Environmental Sustainability ◽  
Energy Demand ◽  
Carbon Emission ◽  
Technology Innovation ◽  
Renewable Energy Consumption ◽  
Panel Ardl ◽  
Long Run ◽  
Environment Degradation

Environment degradation is a very important issue in developing nations and a lot of research had done to examine the factors of environmental degradation but these studies were missed some important factors which are covered by this study. By examining the effect of economic growth and energy in the presence of renewable energy consumption and technology innovation on environment degradation for ASEAN nations. Panel ARDL (which is PMG and MG) is used to estimate the model, and the advantage of this model is it gives both the long and short-run estimates of the model which helps to understand the situation in both short as well as long run. The results confirm that economic growth, Population, trade, and renewable energy increase the carbon emission level in ASEAN nations. While technology innovation decreased carbon emission levels which means technology innovation helps to keep the environment healthy and clean. Hence, economic growth helps the nations to improve their energy mode from non-renewable to renewable energy, which meets the energy demand by keeping the environment clean.

scholarly journals FDI and Economic Growth in EU13 Countries: Cointegration and Causality Tests

2020 ◽  
Vol 12 (3) ◽  
pp. 47-63
Author(s):  
Vlatka Bilas ◽  
Keyword(s):  
Economic Growth ◽  
Growth Rate ◽  
European Union ◽  
Annual Data ◽  
Foreign Direct Investments ◽  
Causality Test ◽  
Panel Ardl ◽  
Long Run ◽  
Causality Tests ◽  
The Relationship

Foreign direct investments are seen as a prerequisite for gaining and maintaining competitiveness. The research objective of this study is to examine the relationship between foreign direct investment (FDI) and economic growth in “new” European Union member countries using various unit root, cointegration, as well as causality tests. The paper employs annual data for FDI and gross domestic product (GDP) from 2002 to 2018 for the 13 most recent members of European Union (EU13): Bulgaria, Croatia, Cyprus, the Czech Republic, Estonia, Hungary, Latvia, Lithuania, Malta, Poland, Romania, Slovakia and Slovenia. An estimated panel ARDL (PMG) model found evidence that there is a long-run equilibrium between the LogGDP, LogFDI and LogFDIP series, with the rate of adjustment back to equilibrium between 3.27% and 20.67%. In the case of the LogFDI series, long-run coefficients are highly statistically significant in all four models, varying between 0.0828 and 0.3019. These coefficients indicate that a 1% increase in LogFDI increases LogGDP between 0.0828% and 0.3019%. Results of a Dumitrescu-Hurlin panel causality test indicated that a relationship between the GDP growth rate and FDI growth rate is only indirect. Finally, only weak evidence was shown that FDI had a statistically significant impact on GDP in the EU13 countries over the period 2002-2018. This report of findings contributes to the literature concerning FDI and economic growth, namely regarding the current understanding of the relationship between these two factors.

scholarly journals Asymmetric effect of financial development and remittance on economic growth in MINT economies: an application of panel NARDL

2021 ◽  
Vol 7 (1) ◽  
Author(s):  
Jamiu Adetola Odugbesan ◽  
Tomiwa Adebayo Sunday ◽  
Gbolahan Olowu
Keyword(s):  
Economic Growth ◽  
Financial Development ◽  
The Novel ◽  
Asymmetric Effect ◽  
Panel Ardl ◽  
Nonlinear Ardl ◽  
Long Run ◽  
Asymmetric Impact ◽  
The Empirical Analysis ◽  
Negative Shock

AbstractThe empirical analysis examines the asymmetric effect of financial development and remittance on economic growth in MINT nations (Mexico, Indonesia, Nigeria, and Turkey). The present study utilized panel data covering the period from 1980 to 2019. The research objectives are to address the questions: (a) Is there a long-run association between economic growth and the regressors? (b) Do financial development and remittance trigger MINT nations' economic growth? Moreover, the present study applied both linear panel ARDL and the novel panel nonlinear ARDL to capture the asymmetric impact of development and remittance on economic growth. The outcomes of the linear ARDL disclosed that both financial development and remittance triggers economic growth positively. Furthermore, the outcomes of the NARDL disclosed that both positive and negative shocks in financial development increase economic growth. In addition, a positive and negative shock in remittance increases economic growth in the long-run.

Dynamic linkages between Non-renewable energy, Renewable energy and Economic growth through nonlinear ARDL approach: Evidence from Malaysia

2021 ◽  
Author(s):  
Rafia Afroz ◽  
Md Muhibbullah
Keyword(s):  
Economic Growth ◽  
Renewable Energy ◽  
Asymmetric Effect ◽  
Nonlinear Ardl ◽  
Long Run ◽  
Ardl Approach ◽  
Consumption Reduction ◽  
Short Run ◽  
Auto Regressive ◽  
Nardl Model

Abstract The purpose of this paper is to investigate the links between renewable energy (RE), non-renewable energy (NRE), capital, labour and economic growth, using the Non-linear Auto Regressive Distributive Lag (NARDL) model in Malaysia for the period of 1980–2018. The results of NARDL confirm the asymmetric effect of RE and NRE consumption on the economic growth in the long run as well as short run in Malaysia. The findings also show that in the long and short-run, positive shocks of NRE are greater than the positive shocks of RE. It indicates that Malaysia's economic growth is highly dependent on NRE which is not a good indication as NRE consumption increases carbon dioxide (CO2) emission in the country. Moreover, the empirical results of this study demonstrated that RE consumption reduction accelerates economic growth whereas NRE consumption reduction decreases economic growth. It can have claimed that in Malaysia RE is still more expensive than NRE. In conclusion, this study offered a variety of measures to develop RE to reduce the dependency on NRE consumption.

Money Supply-Economic Growth Nexus: Evidence from a Landlocked Country

2020 ◽  
Vol 2 (1) ◽  
pp. 106-115
Author(s):  
Tilak Singh Mahara
Keyword(s):  
Economic Growth ◽  
Money Supply ◽  
Correction Term ◽  
Policy Instruments ◽  
Special Role ◽  
Real Gdp ◽  
Long Run ◽  
Ardl Approach ◽  
Short Run ◽  
The Impact

Background: There is special role of money in the economy due to its astonishing importance as change in the amount of it can have a significant effect on the major macroeconomic variables. Money supply is generally considered as policy-determined phenomenon. Like in all the nations, macroeconomic stability of Nepal also depends on the variation in the quantity of money. Objective: The principle objective of the study is to examine the impact of money supply on the economic growth of Nepal. Methodology: This study applies the ARDL approach to cointegration. Bounds test (F-version) has been carried out to determine the existence of long-run relationship between variables. Results: The empirical results pointed out that there is positive and significant long-term relationship between money supply and real economic growth in Nepal. Causality result reveals that there is unidirectional causality from money supply (M2) to Real GDP. The error correction term is found negative and statistically significant suggesting a correction of short-run disequilibrium within two and a half years. Conclusions: The study concludes that increase in the money supply helps to increase the real economic growth in Nepal. So, money supply and real GDP are associated in the long-run.  Implications: The implication of the study is that, real economic growth in Nepal can be achieved if Nepal Rastra Bank emphasized on monetary policy instruments which help to increase the flow of money supply both in the short and long run.

scholarly journals Fiscal Sustainability in the European Countries: A Panel ARDL Approach and a Dynamic Panel Threshold Model

2020 ◽  
Vol 12 (20) ◽  
pp. 8505 ◽  
Author(s):  
María del Carmen Ramos-Herrera ◽  
María A. Prats
Keyword(s):  
Threshold Model ◽  
Fiscal Sustainability ◽  
Causality Test ◽  
Panel Ardl ◽  
Long Run ◽  
Ardl Approach ◽  
Panel Granger Causality ◽  
Potential Gdp ◽  
The Government ◽  
First Time

We analyze the fiscal sustainability hypothesis for a panel of 20 European Union countries from 2000 to 2019. In particular, we employ new econometric methodologies that, to the best of our knowledge, are applied for the first time to the study of sovereign fiscal policy sustainability in these economies. Specifically, we estimate the panel ARDL technique, distinguishing between short- and long-run coefficients because the order of integration of our variables is not the same. Moreover, a panel threshold model with endogeneity is considered to investigate whether, departing from a particular threshold, there is different behavior between the government primary balance and public debt, both taken as a ratio of potential GDP. Finally, the panel Granger causality test is implemented to determine the direction of causality or the existence of bidirectional causality.

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