Dynamics of financial development, trade openness, technological innovation and energy intensity: Evidence from Bangladesh

Energy ◽  
2019 ◽  
Vol 171 ◽  
pp. 456-464 ◽  
Author(s):  
Xiongfeng Pan ◽  
Md. Kamal Uddin ◽  
Cuicui Han ◽  
Xianyou Pan
Keyword(s):  
Financial Development ◽  
Technological Innovation ◽  
Energy Intensity ◽  
Trade Openness

scholarly journals Energy Intensity Determinants Based on Structure-oriented Cointegration by Embedding a Knowledge Box in a Time Series Model: Evidence From Iran

2021 ◽  
Author(s):  
Parisa Esmaeili ◽  
Meysam Rafei
Keyword(s):  
Financial Development ◽  
Energy Intensity ◽  
Trade Openness ◽  
Decomposition Analysis ◽  
Directed Acyclic Graphs ◽  
Impulse Response Functions ◽  
Government Investment ◽  
Long Run ◽  
Oil Revenues ◽  
The Impact

Abstract Energy intensity reduction is an exigent issue for Iran, where energy consumption is so high. Therefore, finding effective policies to reduce energy intensity is important. With this in mind, the impact of financial development, government investment, oil revenues, and trade openness on energy intensity is assessed in this study. We combined Structural Vector Error Correction Model (SVECM) and Directed Acyclic Graphs (DAG) technique to examine the relationships between study variables. The results of DAG prove that financial development, government investment, oil revenues, and trade openness influence the intensity of energy. Besides, the significant and long-run relationships among variables allowed us to apply SVECM. Impulse response functions and variance decomposition analysis indicate that government investment, oil revenues, and trade openness are negatively associated with the intensity of energy. Also, financial development positively influences energy intensity. Meanwhile, the impact of government investment is greater than oil revenues, trade openness, and financial development impacts. So, Government investment is the most effective policy regarding optimizing the consumption of energy and reducing energy intensity. We also advise policymakers to use oil revenues to increase government investment, enhancing the level of trade openness, and tax to the private sector to improve the level of energy intensity.

scholarly journals Energy Efficiency and the Role of Financial Development, Trade Openness and Technological Innovation:  Exploring the Dynamic Linkages for Pakistan

2020 ◽  
Author(s):  
Samia Nasreen ◽  
Sofia Anwar
Keyword(s):  
Economic Growth ◽  
Energy Efficiency ◽  
Financial Development ◽  
Technological Innovation ◽  
Trade Openness ◽  
Directed Acyclic Graphs ◽  
Long Run ◽  
Svar Model ◽  
Cointegration Tests ◽  
Dynamic Linkages

Abstract The study explores the dynamic linkages among financial development, trade openness, technological innovation and energy efficiency in Pakistan utilizing cointegration tests, Directed Acyclic Graphs (DAG) and Structural Vector Autoregression (SVAR) model for the period 1980-2017. The results of Johansen cointegration show that variables ae cointegrated. The robustness of cointegration relationship is confirmed by applying Gregory-Hansen structural break cointegration. The empirical findings imply that financial development and technological innovation positively and significantly stimulate energy efficiency while trade openness and economic growth negatively and significantly impact on energy efficiency in long-run. The DAG results explain the evidence of causality from financial development, trade openness, technological innovation and economic growth to energy efficiency. The results of forecast error variance decomposition from SVAR model describe that technological innovation has greater impact on energy efficiency in short-term but its impact gradually decreases with the extension of forecast period. On contrary, the promotion effect of financial development and trade openness on energy efficiency increase gradually over time and become highest in long-run. This finding underlines the relevance of technological innovation and trade openness to policy makers in order to achieve energy efficiency in Pakistan.

Financial Integrational Effects on Macroeconomic Instability in India

2017 ◽  
Vol 11 (2) ◽  
pp. 143-166
Author(s):  
Niranjan R.
Keyword(s):  
Financial Development ◽  
Financial Integration ◽  
Trade Openness ◽  
Jel Classification ◽  
Financial Openness ◽  
Vector Error Correction ◽  
Vector Error ◽  
International Financial Integration ◽  
Macroeconomic Instability ◽  
Negative Effect

The nexus between international financial integration and economic growth continues to be one of the most debated issues among macroeconomists, and these debates often raise several issues from the theoretical and policy perspectives. Financial integration can catalyse financial development, improve governance and impose discipline on macro-policies. However, in the absence of a basic pre-existing level of supporting conditions, financial integration can aggravate instability (Khadraoui, 2010). In addition, economic theory suggests that increased financial openness intensifies macroeconomic instability. This article investigates the financial integrational effects on macroeconomic instability in terms of output, consumption and investment volatility by employing the vector error correction model (VECM) with empirically reasonably parameters for an emerging economy, India, for the period 1989–2014. From the results, it is evident that financial openness has had a significant effect on output, consumption and investment volatility. Financial development has had a statistically significant negative effect on output, consumption and investment volatility. Similarly, trade openness and terms of trade significantly influence output, consumption and investment volatility. JEL Classification: F36, F41, F43, E32

scholarly journals PENGARUH FINANCIAL DEVELOPMENT TERHADAP PERTUMBUHAN EKONOMI DI INDO

2020 ◽  
Vol 2 (1) ◽  
pp. 75
Author(s):  
Nia Putri Kunanti ◽  
Melti Roza Adry
Keyword(s):  
Economic Growth ◽  
Money Supply ◽  
Financial Development ◽  
Linear Regression Analysis ◽  
Trade Openness ◽  
Control Variable ◽  
Secondary Data ◽  
Negative Effect ◽  
Private Credit ◽  
Positive Effect

This study aims to determine how the influence of financial development on economic growth in Indonesia. Financial development indicators are M2 money supply, bank assets, private credit and trade openness. Where inflation and trade openness as a control variable and economic growth as the dependent variable. The data used in this study are secondary data from 2005 quarter 1 to 2018 quarter 4 which were collected through documentation and related agencies. This study uses multiple linear regression analysis and error correction models. The results of this study indicate that: (1) the money supply M2 has a negative effect on economic growth in Indonesia; (2) Bank assets have a negative effect on economic growth in Indonesia; (3) Private credit has a positive effect on economic growth in Indonesia; (4)) trade openness has a positive effect on economic growth in Indonesia.

scholarly journals The Effect of Financial Development on Energy Intensity in China

2018 ◽  
Vol 39 (01) ◽  
Author(s):  
Carlos Aller ◽  
Maria Jesus Herrerias ◽  
Javier Ord��ez
Keyword(s):  
Financial Development ◽  
Energy Intensity
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