Financial development, globalization and ecological footprint in G7: further evidence from threshold cointegration and fractional frequency causality tests

2020 ◽  
Vol 27 (4) ◽  
pp. 803-825
Author(s):  
Ugur Korkut Pata ◽  
Veli Yilanci
Keyword(s):  
Financial Development ◽  
Ecological Footprint ◽  
Threshold Cointegration ◽  
Fractional Frequency ◽  
Causality Tests

The Relationship between Financial Development and Unemployment in Selected Countries of the European Union

2017 ◽  
Vol 25 (2) ◽  
pp. 307-319 ◽  
Author(s):  
Serhan Çiftçioğlu ◽  
Murad A. Bein
Keyword(s):  
Financial Development ◽  
Unemployment Rate ◽  
Causal Effect ◽  
Annual Data ◽  
The European Union ◽  
Explanatory Variables ◽  
Panel Regressions ◽  
Causality Tests ◽  
Proxy Measure ◽  
The Relationship

This article empirically examines the relationship between alternative measures of financial development and the unemployment rate in a selected group of ten EU countries. Using annual data for the sample period of 1991–2012, we first perform different panel regressions (using averaged and non-averaged versions of data) for unemployment rate. These panel regressions are based on a regression equation that includes inflation rate and growth rate of GDP, in addition to the level of financial development, as explanatory variables. Secondly, we apply Granger causality tests to investigate the nature of the causality between financial development and the unemployment rate for each country in our sample. The empirical findings suggest that unemployment rate and financial development are negatively correlated, and there is a statistically significant causal effect of financial development on unemployment in certain countries. However, the results are not robust to the choice of proxy measure for financial development.

scholarly journals Financial Development and Economic Growth: The Case of Greek Economy

2018 ◽  
Vol 1 (2) ◽  
pp. 173
Author(s):  
Pavlos Stamatiou ◽  
Nikolaos Dritsakis
Keyword(s):  
Economic Growth ◽  
Granger Causality ◽  
Financial Development ◽  
Trade Openness ◽  
Cointegration Analysis ◽  
Development Economic ◽  
Causality Tests ◽  
Greek Economy ◽  
Causal Impact ◽  
Using Data

<p><em>This paper examines the relationship among financial development and economic growth, within a framework which also accounts trade openness, for the case of Greece using data covering the period 2001-2017. </em><em>We investigate this relationship using the Johansen and Juselius (1990) cointegration approach and the </em><em>V</em><em>ector </em><em>E</em><em>rror </em><em>C</em><em>orrection </em><em>M</em><em>odels (VECM), employing Granger causality technique, in order to explore the presence of causality among the variables. </em><em>The results of cointegration analysis suggested that there is one cointegrated vector among the functions of financial development, economic growth and trade openness. Granger causality tests have shown that there are unidirectional causalities running from economic growth to financial development as well as from financial development to trade openness. </em><em>The results support that financial development and trade openness do not have causal impact on economic growth in Greece, for the aforementioned period. On the other hand, economic growth has a causal impact on trade both directly and indirectly through financial development.</em><em></em></p>

scholarly journals Causal Relationship Between Financial Sector Development in SMEs & Economic Growth in Southern Africa Region

2021 ◽  
Vol 18 ◽  
pp. 996-1018
Author(s):  
Abigail Chivandi ◽  
Happiness Makumbe ◽  
Olorunjuwon Samuel
Keyword(s):  
Economic Growth ◽  
Causal Relationship ◽  
Financial Development ◽  
Financial Sector ◽  
Causal Connection ◽  
Financial Sector Development ◽  
Bidirectional Relationship ◽  
Causality Tests ◽  
Annual Time Series ◽  
Development Support

This study explores causal relationship between financial sector development in SMEs and economic growth in Zimbabwe using annual time series and the Error Correction Model (ECM) framework. Monetary sector improvement and financial development stayed a controversial issue in Southern African nations. Market analysts have distinctive hypothetical and exact perspectives on the causal connection between monetary sector improvement and financial development. support supply driving speculation that monetary sector improvement prompts financial development & credit to request pulling speculation which proposes that monetary improvement results from financial development. Study made use of Unit Root Tests, Cointegration, ECM and Granger Causality Tests. Empirical findings revealed a bidirectional relationship between financial sector development in SMEs, economic & business growth. Business & Economic Growth enhance a strong and flexible legal system allowing banks to allocate resources (credit) more efficiently to SMEs. Credit should be accessed by all enterprise fairly to encourage the development of indigenous businesses through SMEs.

The impact of financial development on carbon, non-carbon, and total ecological footprint in Nigeria: new evidence from asymmetric dynamic analysis

2020 ◽  
Vol 27 (17) ◽  
pp. 21628-21646 ◽  
Author(s):  
Philip C. Omoke ◽  
Chinazaekpere Nwani ◽  
Ekpeno L. Effiong ◽  
Osaretin Omorodion Evbuomwan ◽  
Chukwuemeka Chinonso Emenekwe
Keyword(s):  
Dynamic Analysis ◽  
Financial Development ◽  
Ecological Footprint ◽  
The Impact ◽  
New Evidence

GDP, energy consumption and financial development in Italy

2018 ◽  
Vol 12 (1) ◽  
pp. 28-43 ◽  
Author(s):  
Cosimo Magazzino
Keyword(s):  
Energy Consumption ◽  
Granger Causality ◽  
Financial Development ◽  
Oil Prices ◽  
Content Type ◽  
Real Gdp ◽  
Long Run ◽  
Causality Tests ◽  
Granger Causality Tests ◽  
Toda And Yamamoto

Purpose This study aims to explore the relationship among energy consumption, real income, financial development and oil prices in Italy over the period 1960-2014. Design/methodology/approach Different econometric techniques – such as the General Methods of Moment (GMM) or the AutoRegressive Distributed Lags (ARDL) bounds test – are usually used in the empirical analysis. Moreover, both the Toda and Yamamoto causality tests and the Granger causality tests are applied to the data. Findings The results of unit root and stationarity tests show that the variables are non-stationary at levels, but stationary in first-differences form, or I(1). The ARDL bounds F-test reveals an evidence of a long-run relationship among the four variables at 1% significance level. Moreover, an increase in real GDP and oil prices has a significant effect on energy consumption in the long run. The coefficients of estimated error correction term are also negative and statistically significant. In addition, the paper explores the causal relationship between the variables by using a VAR framework, with Toda and Yamamoto but also Granger causality tests, within both multivariate and bivariate systems. The findings indicate that energy consumption is affected by real GDP. Originality/value The study also filled the literature gap of applying ARDL technique to examine this relevant issue for Italy.

Financial Development and Output: A Synthesis of Time Series Cointegration and Causality Tests for Bangladesh

2016 ◽  
Vol 5 (2) ◽  
pp. 113-132 ◽  
Author(s):  
Anupam Das ◽  
Syeed Khan
Keyword(s):  
Developing Countries ◽  
Financial Development ◽  
Financial Liberalization ◽  
Jel Classification ◽  
Output Growth ◽  
Empirical Literature ◽  
Financial Policies ◽  
Data Set ◽  
Vector Error Correction ◽  
Causality Tests

Since the 1980s, financial liberalization in developing countries has been an important policy prescription of many international organizations including the World Bank (WB) and International Monetary Fund (IMF). It is argued that the liberalization of the financial sector would allocate productive resources in the most efficient way and increase economic growth. However, the relationship between financial liberalization and output is not clear in the existing empirical literature. Applying the cointegration and Granger causality tests within the vector error correction model (VECM) to a data set from 1974 to 2013, our results suggest that output per capita Granger causes financial development, and vice versa. Hence, we find the evidence of bidirectional causality between financial development and GDP in Bangladesh. These results will help policymakers design financial policies in Bangladesh and other developing countries, which face the dilemma of financial liberalization while maintaining a high and stable output growth. JEL Classification: E44, O40, C22

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