INSURANCE AND REAL OUTPUT: THE KEY ROLE OF BANKING ACTIVITIES

2011 ◽  
Vol 17 (2) ◽  
pp. 235-260 ◽  
Author(s):  
Chien-Chiang Lee
Keyword(s):  
Structural Breaks ◽  
Banking Sector ◽  
Panel Cointegration ◽  
Insurance Market ◽  
Real Output ◽  
Cross Sectional ◽  
Positive Effects ◽  
Long Run ◽  
Cointegration Tests ◽  
Negative Effect

This paper applies panel cointegration tests and panel vector error correction models for 17 OECD countries and considers cross-sectional dependence and structural breaks to investigate the interrelationship between an insurance market's development and real output, controlling for banking activities. We first obtain evidence of a fairly strong long-run equilibrium relationship among them. Second, we find that insurance market development has positive effects on real output and that banking activities have an unfavorable, if not negative, effect on real output. In fact, insurance market activity is much more productive than banking sector activity. Finally, there exists bidirectional causality between insurance premiums and economic growth in the long run, suggesting the existence of the feedback hypothesis for the insurance–output nexus.

scholarly journals Determinants Of Foreign Direct Investment: The Case Of Emerging Markets

2016 ◽  
Vol 32 (4) ◽  
pp. 1033-1040
Author(s):  
Houssem Rachdi ◽  
Mariem Brahim ◽  
Khaled Guesmi
Keyword(s):  
Foreign Direct Investment ◽  
Emerging Markets ◽  
Direct Investment ◽  
Structural Breaks ◽  
Panel Cointegration ◽  
Real Effective Exchange Rate ◽  
Cross Sectional ◽  
Long Run ◽  
Effective Exchange ◽  
Effective Exchange Rate

This paper aims to investigate the relationship between Determinants of Foreign Direct Investment (FDI) inflows and their determinants in 68 Emerging Markets between1984-2011. This paper uses a panel cointegration technique of Pedroni (1999, 2004) and Westerlund and Edgerton (2008) considering both structural breaks and cross-sectional dependence. Cointegration results indicate that there exists a positive long-run relationship between economic growth, openness and FDI and a negative long-run relationship between inflation, real effective exchange rate and FDI.

scholarly journals Nexus Between Carbon Emissions, Energy Consumption, Urbanization and Economic Growth in Asia: Evidence From Common Correlated Effects Mean Group Estimator (CCEMG)

2021 ◽  
Vol 8 ◽  
Author(s):  
Yusuf Babatunde Adeneye ◽  
Amar Hisham Jaaffar ◽  
Chai Aun Ooi ◽  
Say Keat Ooi
Keyword(s):  
Economic Growth ◽  
Energy Consumption ◽  
Carbon Emission ◽  
Panel Cointegration ◽  
Energy Prices ◽  
Asian Countries ◽  
Cross Sectional ◽  
Long Run ◽  
Cointegration Tests ◽  
Common Correlated Effects

This study investigates the dynamic relationships between carbon emission, urbanization, energy consumption, and economic growth in a panel of 42 Asian countries for the period 2000–2014 using dynamic common correlated effects panel data modeling. This study employs second generation cross-sectional Pesaran (J. Appl. Econom., 2007, 22(2), 265-312) panel unit root, Westerlund panel cointegration tests (Econom. Stat., 2007, 69(6), 709-748), and Pesaran’s (Econometrica, 2006, 74(4), 967-1012) common correlated effects mean group estimation technique. These approaches allow for cross-sectional dependence, and are robust to the presence of common factors, serial correlation, and slope heterogeneity. The Common Correlated Effect Mean Group test reveals a high average coefficient of 0.602 between carbon emission and energy consumption while low coefficients of 0.114 and 0.184 for the pairs of carbon emission-urbanization and carbon emission-GDP, respectively for the panel as a whole, suggesting a cointegration between carbon emission, urbanization, energy consumption, and economic growth. The results indicate that there is relatively high carbon emission especially for highly populated and geopolitical risk Asian countries in the short run. Findings reveal long run relationships between the variables, which is attributed to the on-going carbon taxation and energy prices. Our results are robust to PMG-ARDL estimator. Overall, these findings cast important implications on renewable energy policy and urban planning insights for the policymakers.

Unemployment and its Impact on Economic Growth in the European Union

2015 ◽  
pp. 12-22 ◽  
Author(s):  
Murat Cetin ◽  
Davuthan Gunaydın ◽  
Hakan Cavlak ◽  
Birol Topcu
Keyword(s):  
Economic Growth ◽  
Panel Cointegration ◽  
Policy Implications ◽  
The European Union ◽  
Vector Error Correction ◽  
Long Run ◽  
Cointegration Tests ◽  
Causality Tests ◽  
Negative Effect ◽  
The Impact

Unemployment has become an increasingly serious economic and social problem in many European countries. Theoretically, unemployment has a negative effect on economic growth and development. This chapter examines the impact of unemployment on economic growth in 15 EU countries from 1984 to 2012 by using several panel data techniques. Panel unit root tests suggest that the series employed in the study are stationary at first differences. In other words, the series are integrated of order one, I(1). Panel cointegration tests show that the variables are cointegrated over the period implying a long-run relationship between the variables. Panel OLS estimations show that the impact of unemployment on economic growth is negative and statistically significant. This indicates that unemployment decreases economic growth in these countries. Finally, Granger causality tests based on vector error correction model suggest that there is a bi-directional causality between the variables in the short and long run. The findings may provide some policy implications.

scholarly journals Panel Econometric Analysis on Mobile Payment Transactions and Traditional Banks Effort toward Financial Accessibility in Sub-Sahara Africa

2020 ◽  
Vol 12 (3) ◽  
pp. 895 ◽  
Author(s):  
Cephas Paa Kwasi Coffie ◽  
Hongjiang Zhao ◽  
Isaac Adjei Mensah
Keyword(s):  
Time Series Data ◽  
Unit Root Test ◽  
Panel Cointegration ◽  
Ordinary Least Squares ◽  
Sustainable Growth ◽  
Series Data ◽  
Mobile Payment ◽  
Cross Sectional ◽  
Mobile Payments ◽  
Long Run

The financial landscape of sub-Sahara Africa is undergoing major changes due to the advent of FinTech, which has seen mobile payments boom in the region. This paper examines the salient role of mobile payments in traditional banks’ drive toward financial accessibility in sub-Sahara Africa by using panel econometric approaches that consider the issues of independencies among cross-sectional residuals. Using data from the World Development Index (WDI) 2011–2017 on 11 countries in the region, empirical results from cross-sectional dependence (CD) tests, panel unit root test, panel cointegration test, and the fully modified ordinary least squares (FMOLS) approach indicates that (i) the panel time series data are cross-sectionally independent, (ii) the variables have the same order of integration and are cointegrated, and (iii) growth in mobile payment transactions had a significant positive relationship with formal account ownership, the number of ATMs, and number of new bank branches in the long-run. The paper therefore confirms that the institutional structure of traditional banks that makes them competitive, irrespective of emerging disruptive technologies, has stimulated overall financial accessibility in the region leading to overall sustainable growth in the financial sector. We conclude the paper with feasible policy suggestions.

An empirical note on entrepreneurship and unemployment

2016 ◽  
Vol 5 (1) ◽  
pp. 73-81 ◽  
Author(s):  
Nicholas Apergis ◽  
James E Payne
Keyword(s):  
Error Correction ◽  
Panel Cointegration ◽  
Personal Income ◽  
Entrepreneurial Activity ◽  
Cross Sectional ◽  
Content Type ◽  
Long Run ◽  
Short Run ◽  
Per Capita ◽  
Capita Personal Income

Purpose – The purpose of this paper is to extend the existing literature on the causal dynamics between entrepreneurship and the unemployment rate (UR) in the use of the Kauffman Foundation index of entrepreneurial activity. Design/methodology/approach – Recently developed panel unit root tests with recognition of cross-sectional dependence and panel cointegration/error correction modeling techniques are applied to US States. Findings – The results indicate that the rate of entrepreneurship, the UR, and real per capita personal income are cointegrated. The panel error correction model reveals that bidirectional causality exists among the variables in both the short run and long run. With respect to entrepreneurship, an increase in the UR increases the rate of entrepreneurship, in turn, an increase in the rate of entrepreneurship lowers the UR. Moreover, the results also show a positive bidirectional relationship between the rate of entrepreneurship and real per capita personal income. Originality/value – Unlike other standard measures of entrepreneurship, this is the first empirical study of the causal dynamics between entrepreneurship and the UR using the Kauffman Foundation index of entrepreneurial activity.

scholarly journals PENGARUH STRUKTUR KEPEMILIKAN DAN STRUKTUR MODAL TERHADAP HARGA SAHAM

2018 ◽  
Vol 14 (2) ◽  
pp. 89
Author(s):  
Rani Raharjanti ◽  
Nur Setyowati
Keyword(s):  
Stock Price ◽  
Panel Cointegration ◽  
Managerial Ownership ◽  
Correction Model ◽  
Vector Error Correction ◽  
Vector Error ◽  
Long Run ◽  
Cointegration Tests ◽  
Short Run ◽  
Equity Ratio

This paper aims to investigate the short and long run behavior of ownership structure, capital structure and Indonesian Stock Price over the period from 2007 to 2016. To capture the long run relationships, we used the panel cointegration by Pedroni (1999, 2000, 2004), while the short run relationship are measured by Vector Error Correction Model (VECM). The main findings are as follows. First, the result of most results of Pedroni’s panel cointegration tests, suggest the null hypothesis of no cointegration is rejected. In consequence, this result suggests that there is a cointegration between stock price, managerial ownership, institutional ownership, public ownership, debt to equity ratio and earnings per share. Second, the results of VECM indicate that in the short run, only managerial ownership that will influence the stock price.

Entrepreneurs’ Competencies and Competitive Advantages: A Study on Malaysian Microenterprises

2019 ◽  
pp. 097215091985493
Author(s):  
Syed Ali Fazal ◽  
Abdullah Al Mamun ◽  
Ghazali Bin Ahmad ◽  
Muhammad Mehedi Masud
Keyword(s):  
Competitive Advantage ◽  
Low Income ◽  
Peninsular Malaysia ◽  
Policy Implications ◽  
Business Success ◽  
Cross Sectional ◽  
Positive Effects ◽  
Negative Effect ◽  
The Government ◽  
Relationship Competency

Considering the significance of relevant competencies towards business success and the dependency of socio-economical vulnerable micro-entrepreneurs on their enterprise income, this study examined the effect of entrepreneurs’ competencies (i.e., opportunity recognizing competency, strategic competency, organizing competency, relationship competency, conceptual competency and commitment competency) on the competitive advantage of microenterprises in Malaysia. This study adopted a cross-sectional research design and collected quantitative data from 300 randomly selected respondents from Peninsular Malaysia. The findings revealed significant positive effects of organizing and commitment competency on the competitive advantage with a significantly negative effect of relationship competency on the competitive advantage. Apart from enriching the current literature, this study offers significant policy implications for the government and socio-developmental organizations in Malaysia for improving the micro-entrepreneurship and uplifting large low-income groups from poverty.

scholarly journals The Corruption-Terrorism Nexus: A Panel Data Approach

2016 ◽  
Vol 8 (11) ◽  
pp. 111 ◽  
Author(s):  
Nahil Boussiga ◽  
Malek Ghdamsi
Keyword(s):  
Panel Cointegration ◽  
Political Stability ◽  
Cointegration Test ◽  
Correction Model ◽  
Major Threat ◽  
Long Run ◽  
Cointegration Tests ◽  
Panel Cointegration Test ◽  
The Relationship ◽  
Control Of Corruption

<p>Corruption has been increasingly recognized as the major threat to economic development, political stability and peace. It is also acknowledged by international community as the breeding ground for terrorism. This paper examines the relationship between corruption and terrorism in the long run. Previous studies examining the link between these two phenomena used only time series cointegration tests. In this paper, we make use of a dataset for a panel of 123 developed and developing countries over the period 2003-2014. We use Pedroni’s residual-based panel cointegration test and the error correction model-based panel cointegration test developed by Westerlund. In order to obtain more robust results, we use two different measures of corruption which are Corruption Perceptions Index (CPI) and Worldwide Control of Corruption Indicator (CC). The results of both tests reject the null hypothesis of no cointegration. we conclude that corruption and terrorism converge. Our findings corroborate results of previous studies.</p>

The Effect of Deregulation on Employee Earnings: Pilots, Flight Attendants, and Mechanics, 1959–1992

ILR Review ◽  
1996 ◽  
Vol 49 (2) ◽  
pp. 223-242 ◽  
Author(s):  
Pierre-Yves Crémieux
Keyword(s):  
Flight Attendants ◽  
Firm Level ◽  
Cross Sectional ◽  
Long Run ◽  
Airline Deregulation ◽  
Level Data ◽  
Negative Effect ◽  
Long Term Trends ◽  
Sectional Analysis

Previous studies of the effect of the 1978 Airline Deregulation Act on employee earnings have reported mixed results: some have found no negative long-run effect of deregulation and others have found a negative effect of up to 10%. Most of these studies relied on cross-sectional analysis of a few years' data. This paper, in contrast, examines the long-term trends in airline earnings, based on 34 years of newly collected firm-level data from the Department of Transportation's Form 41 and airline workers' unions. The author finds that although deregulation had no statistically significant effect on the earnings of mechanics, it strongly affected the earnings of flight attendants and pilots. Flight attendants' earnings were at least 12% lower by 1985 and 39% lower by 1992 than they would have been if deregulation had not occurred, and the corresponding shortfalls for pilots were 12% and 22%.

scholarly journals A macro assessment of China effects on Malaysian exports and trade balances

2014 ◽  
Vol 7 (1) ◽  
pp. 18-37 ◽  
Author(s):  
Tze-Haw Chan ◽  
Hooi Hooi Lean ◽  
Chee-Wooi Hooy
Keyword(s):  
Trade Balance ◽  
Structural Breaks ◽  
Structural Break ◽  
Analytical Framework ◽  
Trade Integration ◽  
Content Type ◽  
Regional Collaboration ◽  
Long Run ◽  
Cointegration Tests ◽  
The Impact

Purpose – This paper aims to focus on the impact of China's export expansion on Malaysian monthly trading with to her 12 major trading partners over the liberalization era. Design/methodology/approach – The analytical framework comprises of both the export and trade balance models. Unit root and cointegration tests with break and error correction modeling are employed in the analyses. Findings – Regime shifts are evident in the long run where structural break(s) found mostly coincides with the Asia crisis and China's accession into WTO. While the income effects are more apparent in most cases, the real exchanges are rather insignificant and incorrectly signed for Malaysian bilateral trading. Besides, the trade balance estimation is generally more consistent that the Chinese exports have exhibited complementary effects in the long-run, mainly for advanced export destination such as Australia, Germany, Japan, the UK and the USA. On the whole, there is insufficient evidence to support the “PRC competitive threat”. Practical implications – The empirical evidence disfavors currency devaluation for current account correction and reveals that the fear for China effect might be over-projected. Closer regional collaboration and trade integration between the two nations are well expected. Originality/value – The paper assesses the China's crowding out effect and magnitudes of Malaysian export and trade balance elasticities with model specifications that consider structural breaks. The paper also assesses the macro dimension of income and real exchanges effects.

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