The asymmetric effect of COVID-19 outbreak, commodities prices and policy uncertainty on financial development in China: evidence from QARDL approach

The study asseses the influence of migrant remittances on financial development over the period of 1976-2018 in Pakistan. This study has applied the linear autoregressive distributive lag (ARDL) model and nonlinear autoregressie distributed lag (NARDL) model to check the symmetric and asymmetric effect of remittances. Results of the ARDL and NARDL bound test confirm remittances, FDI, real GDP and inflation significantly contributing to financial development. The outcomes of ARDL and NARDL have also confirmed the significant positive effect of migrant remittances on financial development in long-run. The asymmetric ARDL results show the existence of remittances nonlinear effect on financial development. Specifically, the study found remittances decrease have a significant impact while remittances increase have no any significant effect on financial development. Based on findings, this study recommends the plan for the policymakers of recipient countries, especially Pakistan, could harvest the potential gain of migrant remittances though positive asymmetric association with financial sector development.

Download Full-text

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

Future Business Journal ◽

10.1186/s43093-021-00085-6 ◽

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.

Download Full-text

Do economic policy uncertainty and financial development influence the renewable energy consumption levels in China?

Environmental Science and Pollution Research ◽

10.1007/s11356-021-16194-2 ◽

2021 ◽

Author(s):

Wang Lei ◽

Lihan Liu ◽

Muhammad Hafeez ◽

Sidra Sohail

Keyword(s):

Economic Policy ◽

Renewable Energy ◽

Energy Consumption ◽

Financial Development ◽

Policy Uncertainty ◽

Renewable Energy Consumption ◽

Economic Policy Uncertainty

Download Full-text

A Dynamic Linkage between Financial Development, Energy Consumption and Economic Growth: Evidence from an Asymmetric and Nonlinear ARDL Model

Energies ◽

10.3390/en14165006 ◽

2021 ◽

Vol 14 (16) ◽

pp. 5006

Author(s):

Imran Khan ◽

Faheem Ur Rehman ◽

Paula Pypłacz ◽

Muhammad Asif Khan ◽

Agnieszka Wiśniewska ◽

...

Keyword(s):

Economic Growth ◽

Energy Consumption ◽

Financial Development ◽

Time Series Data ◽

Structural Break ◽

Unit Root Test ◽

Series Data ◽

Asymmetric Effect ◽

Nonlinear Ardl ◽

Nonlinear Ardl Model

Developing countries, including Pakistan, need a considerable effort to withstand economic growth; however, these countries have to cope with greenhouse gases emission and other environmental concerns. Financial advancement gives rise to modern, sometimes even innovative and energy-efficient technologies and, thus, contributes to a decline in energy usage among market entities: organizations and households. The current study explores the nonlinear asymmetric relationship between economic growth (Y) and the selected exogenous variables in Pakistan by incorporating time series data spanning from 1971 to 2016. Economic growth was considered as a target variable, while energy consumption (EC), electric power consumption (EPC), financial development (FD), and energy imports (EM) were considered independent variables. To investigate cointegration among the given variables, a nonlinear ARDL bound testing approach was employed. BDS independence test was used to check the nonlinearity, and a structural break unit root test was used for testing data stationarity. The findings confirm the presence of co-integration in the selected variables. A symmetric unidirectional significant causality exists running from EPC to Y, while a bidirectional symmetric causality was found between FD and Y. In contrast, any negative shocks in EPC, FD, and EM were found to have a positive asymmetric effect on Y. Meanwhile, a neutral effect was found between EC and Y. The outcomes of this study can provide guidelines for future researchers and policymakers.

Download Full-text

The asymmetric effect of tourism, financial development, and globalization on ecological footprint in Turkey

Environmental Science and Pollution Research ◽

10.1007/s11356-020-09937-0 ◽

2020 ◽

Vol 27 (32) ◽

pp. 40109-40120 ◽

Cited By ~ 1

Author(s):

Danish Iqbal Godil ◽

Arshian Sharif ◽

Saima Rafique ◽

Kittisak Jermsittiparsert

Keyword(s):

Financial Development ◽

Ecological Footprint ◽

Asymmetric Effect

Download Full-text

Does Economic Policy Uncertainty Affect Exchange Rate in China and Japan? Evidence from Threshold Cointegration with Asymmetric Adjustment

International Journal of Economics and Financial Issues ◽

10.32479/ijefi.11973 ◽

2022 ◽

Vol 12 (1) ◽

pp. 28-36

Author(s):

Riadh El Abed ◽

Zouheir Mighri ◽

Abderrazek Ben Hamouda

Keyword(s):

Economic Policy ◽

Threshold Effect ◽

Adjustment Process ◽

Policy Uncertainty ◽

Threshold Cointegration ◽

Asymmetric Effect ◽

Asymmetric Adjustment ◽

Economic Policy Uncertainty ◽

Nominal Exchange Rates ◽

China And Japan

In this article, we estimate the links between nominal exchange rates (JPY/USD and CNY/USD) and economic policy uncertainty (EPU) in China and Japan by employing monthly data during the period span from January 1997 to September 2020. The threshold cointegration approach focus in TAR, M-TAR, C-TAR and C-MTAR is used. Results indicate the evidence of asymmetric effect in the adjustment process to equilibrium and the M-TAR is the best model to detect threshold effect for the (CNY/USD-CNYEPU) pair and the C-TAR is the best model to detect threshold effect for the (JPY/USD-JPYEPU) pair.

Download Full-text

INSURANCE CONSUMPTION AND ECONOMIC POLICY UNCERTAINTY IN INDIA: AN ANALYSIS OF ASYMMETRIC EFFECTS

The Singapore Economic Review ◽

10.1142/s0217590821410095 ◽

2021 ◽

pp. 1-29

Author(s):

SIDDHARTH KUMAR ◽

NARESH CHANDRA SAHU ◽

PUSHP KUMAR

Keyword(s):

Economic Policy ◽

Life Insurance ◽

Structural Break ◽

Negative Relationship ◽

Policy Uncertainty ◽

Asymmetric Effect ◽

Economic Policy Uncertainty ◽

Asymmetric Effects ◽

Distributed Lag ◽

Insurance Consumption

This study examines the asymmetric effect of economic policy uncertainty (EPU) on life and non-life insurance consumption in India using monthly data from April 2004–October 2020. The paper has employed a nonlinear autoregressive distributed lag (NARDL) model with a structural break. The results reveal that there exists an asymmetric effect of EPU on life insurance as well as non-life life insurance consumption. A negative relationship is found between EPU and insurance consumption in both life and non-life insurance. Based on the findings, the study suggests the policymakers to consider the asymmetric effects of EPU while formulating insurance-related policies in India.

Download Full-text

Financial Development and the Quality of the Environment in Nigeria: An Application of Non-Linear ARLD Approach

Research in World Economy ◽

10.5430/rwe.v11n1p78 ◽

2020 ◽

Vol 11 (1) ◽

pp. 78

Author(s):

Aminu Hassan Jakada ◽

Suraya Mahmood ◽

Ali Umar Ahmad ◽

Ibrahim Sambo Farouq ◽

Umar Aliyu Mustapha

Keyword(s):

Financial Development ◽

Asymmetric Effect ◽

Environment Friendly ◽

Ardl Approach ◽

Non Linear ◽

Key Policy ◽

The Government ◽

To Come

The present study examines the asymmetric effect of financial development on the quality of environment in Nigeria from 1970 to 2018. The study employed the techniques of non-linear ARDL approach as well as Diks and Panchenko (2006) non-linear test of causality. A comprehensive index of financial development is constructed using PCA. The empirical outcomes of the study reveal that financial development in Nigeria impedes the quality of the environment. The government should encourage lenders to ease the funding for the energy sector and allocate financial resources for environment-friendly businesses rather than wasting them in consumer financing. Moreover, economic growth and FDI are positively and significantly related to carbon emissions. On this basis, the government should introduce environmentally friendly technologies that will help improve the quality of the environment, increase long-term sustainability, and save resources for generations to come. A key policy consequence of this study is also that the FDI inflow to pollution-intensive industries should be closely monitored.

Download Full-text

Nexus between Economic Policy Uncertainty and Renewable Energy Consumption in BRIC Nations: The Mediating Role of Foreign Direct Investment and Financial Development

Energies ◽

10.3390/en14154687 ◽

2021 ◽

Vol 14 (15) ◽

pp. 4687

Author(s):

Yongliang Zhang ◽

Md. Qamruzzaman ◽

Salma Karim ◽

Ishrat Jahan

Keyword(s):

Renewable Energy ◽

Energy Consumption ◽

Financial Development ◽

Direct Investment ◽

Clean Energy ◽

Policy Uncertainty ◽

Energy Integration ◽

Renewable Energy Consumption ◽

Long Run

In recent literature, the impact of economic policy uncertainty (EPU) on macro aspects have been investigated, but the aspect of energy, precisely renewable energy still to explore. The motivation of the study is to produce fresh evidence regarding the nexus between EPU and renewable energy consumption (REC) with the mediating role of forcing direct investment (FDI) and financial development (FD) in BRIC nations for the period 1997q1–2018q4. The study applied unit root tests following Ng-Perron and Zivot and Andrews for detecting variable’s stationary properties. The long-run cointegration was evaluated by implementing Bayer, Hanck combined the cointegration test, Bound testing approach, and tBDM test. Both linear and non-linear ARDL were implemented to evaluate long-run and short-run shocks, and directional causality was assessed through a non-granger causality test. Furthermore, the study implemented robustness by implementing fully-modified OLS, dynamic OLS, and canonical cointegrating regression (CCR). Unit root test established the variables are stationary after the first difference; moreover, the Bayer and Hanck cointegration test confirmed the long-run association between EPU, FD, FD, and REC in BRIC nations. Accruing to ARDL estimation, adverse effects running from EPU to REC both in the long run and short run. Furthermore, the positive statistically significant linkage revealed for FDI and FD to REC implies that clean energy integration could be augmented with continual inflows of FDI and development of the financial sector. Model estimation with asymmetric assumption, the study documented asymmetric effects running from EPU, FDI, and FD to renewable energy consumption, especially in the long run. Finally, the directional causality revealed unidirectional causality between REC and EPU, whereas the feedback hypothesis was disclosed for FDI and REC] and FD and REC. Study findings postulated that the role of foreign direct investment and financial development is critically significant because technological advancement and capital investment augment clean energy integration through the application of renewable energy.

Download Full-text