scholarly journals The impact of economic growth, trade openness and manufacturing on CO2 emissions in India: an autoregressive distributive lag (ARDL) bounds test approach

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Yaswanth Karedla ◽  
Rohit Mishra ◽  
Nikunj Patel
Keyword(s):  
Economic Growth ◽  
Co2 Emissions ◽  
Trade Openness ◽  
The Body ◽  
Content Type ◽  
Body Of Knowledge ◽  
Long Run ◽  
Bounds Test ◽  
The Impact ◽  
The Relationship

PurposeThe purpose of this study is to examine the impact of economic growth, trade openness and manufacturing on CO2 emissions in India.Design/methodology/approachThe study employed autoregressive distributive lag (ARDL) bounds test approach and uses CO2 emissions, trade, manufacturing and GDP per capita to examine the relationship using an annual time series data from World Development Indicators during 1971 to 2016.FindingsResults depict that there exists a long-run relationship between CO2 emissions and other variables. Trade openness significantly reduces CO2 emissions, whereas manufacturing and GDP have a significant and positive impact on CO2 in the long run.Research limitations/implicationsThe findings of the study contribute to the body of knowledge by providing new evidence on the relationship between developmental metrics and the environment. These findings are critical for policymakers and regulatory bodies to focus on economic development without jeopardizing environmental degradation.Practical implicationsIn order to keep its commitment to sustainability, India needs to develop policies that encourage cleaner production methods and establishment of non-polluting industries. Simultaneously, it must disincentivize industries that emit CO2 by policy frameworks such as carbon taxes, pollution taxes or green taxes.Originality/valueNone of studies examine at how these environmental factors interact in India. Kilavuz and Dogan (2020) used the same variables, but their scope was limited to Turkey. As a result, the study is the first to examine this relationship for India, contributing to the body of knowledge on economic growth, manufacturing, trade openness and environmental concerns.

The Kyoto Protocol and CO2 emission: is India still hibernating?

2018 ◽  
Vol 11 (2) ◽  
pp. 152-168 ◽  
Author(s):  
Aaqib Ahmad Bhat ◽  
Prajna Paramita Mishra
Keyword(s):  
Economic Growth ◽  
Energy Consumption ◽  
Kyoto Protocol ◽  
Empirical Relationship ◽  
Trade Openness ◽  
Content Type ◽  
Long Run ◽  
Short Run ◽  
International Climate ◽  
The Impact

Purpose The purpose of this study is to investigate the relationship between CO2 emission and its core determinants, namely, economic growth, energy consumption and trade openness in the pre- and post-Kyoto Protocol era in the Indian economy. Design/methodology/approach The study uses the ARDL bounds test to analyze the long-run and short-run empirical relationship between the interested variables for the time period 1971-2013. A dummy variable representing the Kyoto Protocol regime has been included to examine the likely impact of international climate policies (Kyoto Protocol) in controlling and reducing CO2 emission in India. Findings The empirical results indicate the possibility of increase in CO2 emission from India even after the Kyoto Protocol regime. Evidence of inverted U-shaped relationship between CO2 emission and economic growth (EKC hypothesis) has been confirmed. However, compared to increase in CO2 emission, the magnitude of decrease due to improvement in economic growth is relatively lesser. Energy consumption and trade openness are also found to increase CO2 emission. Research limitations/implications The results indicate that there is a lack of commitment on the part of India to curtail CO2 emission, which can be disastrous for future prosperity. Financing the renewable electricity generation, R&D subsidy and tax-free renewable energy seems to be imperative to address this catastrophic problem. Originality/value This study is the first attempt to analyze the impact of international climate policy (Kyoto Protocol) on CO2 emission by incorporating a fixed dummy in the ARDL specifications.

Trade openness and economic growth in the Asian region

2014 ◽  
Vol 7 (3) ◽  
pp. 136-152 ◽  
Author(s):  
Muhammad Tahir ◽  
Imran Khan
Keyword(s):  
Economic Growth ◽  
Developing Countries ◽  
Least Squares Method ◽  
Trade Openness ◽  
Domestic Investment ◽  
Content Type ◽  
Asian Region ◽  
Long Run ◽  
The Impact ◽  
Determinants Of Economic Growth

Purpose – This paper aims to focus on the Asian developing countries to examine the impact of trade openness on economic growth. Design/methodology/approach – Empirical analysis is carried out with the help of panel econometric techniques and two-stages least squares method. Findings – The results show that trade openness has contributed significantly to the growth process of the developing countries located in the Asian region. It is also found that domestic investment has influenced economic growth for the sampled countries. Further, the results show that human capital has adversely affected economic growth despite the fact that different proxy variables are used. Research limitations/implications – No positive relationship between education and economic growth could be established despite using different measures of education. However, this issue has been brought to the attention of researchers for further investigation. Practical implications – Developing countries located in the Asian region, therefore, are suggested to speed up the process of trade liberalization and also pay favourable attention to other determinants of economic growth to accelerate long-run economic growth. Originality/value – The results presented in the paper are original. Some insights about the impact of education on economic growth have been highlighted.

Does renewable energy promote green economic growth in OECD countries?

2020 ◽  
Vol 11 (4) ◽  
pp. 771-798 ◽  
Author(s):  
Dilvin Taşkın ◽  
Gülin Vardar ◽  
Berna Okan
Keyword(s):  
Economic Growth ◽  
Renewable Energy ◽  
Energy Consumption ◽  
Trade Openness ◽  
Green Economy ◽  
Renewable Energy Consumption ◽  
Content Type ◽  
Long Run ◽  
Wide Range ◽  
The Impact

Purpose The development of green economy is of academic and policy importance to governments and policymakers worldwide. In the light of the necessity of renewable energy to sustain green economic growth, this study aims to examine the relationship between renewable energy consumption and green economic growth, controlling for the impact of trade openness for Organization for Economic Co-operation and Development countries over the period 1990-2015, within a multivariate panel data framework. Design/methodology/approach To investigate the long-run relationship between variables, panel cointegration tests are performed. Panel Granger causality based on vector error correction models is adopted to understand the short- and long-run dynamics of the data. Furthermore, ordinary least square (OLS), dynamic OLS and fully modified OLS methods are used to confirm the long-run elasticity of green growth for renewable energy consumption and trade openness. Moreover, system generalized method of moment is applied to eliminate serial correlation, heteroscedasticity and endogeneity problems. The authors used the panel Granger causality test developed by Dumitrescu and Hurlin (2012) to infer the directionality of the causal relationship, allowing for both the cross-sectional dependence and heterogeneity. Findings The results suggest that renewable energy consumption and trade openness exert positive effects on green economic growth. The results of long-run estimates of green economic growth reveal that the long-run elasticity of green economic growth for trade openness is much greater than for renewable energy consumption. The estimated results of the Dumitrescu and Hurlin (2012) test reveal bidirectional causality between green economic growth and renewable energy consumption, providing support for the feedback hypothesis. Practical implications This paper provides strong evidence of the contribution of renewable energy consumption on green economy for a wide range of countries. Despite the costs of establishing renewable energy facilities, it is evident that these facilities contribute to the green growth of an economy. Governments and public authorities should promote the consumption of renewable energy and should have a support policy to promote an active renewable energy market. Furthermore, the regulators must constitute an efficient regulatory framework to favor the renewable energy consumption. Social implications Many countries focus on increasing their GDP without taking the environmental impacts of the growth process into account. This paper shows that renewable energy consumption points to the fact that countries can still increase their economic growth with minimal damage to environment. Despite the costs of adopting renewable energy technologies, there is still room for economic growth. Originality/value This paper provides evidence on the contribution of renewable energy consumption on green economic growth for a wide range of countries. The paper focuses on the impact of renewable energy on economic growth by taking environmental degradation into consideration on a wide scale of countries.

The relationship between international trade openness and economic growth in the developing economies

2015 ◽  
Vol 8 (2) ◽  
pp. 123-139 ◽  
Author(s):  
Muhammad Tahir ◽  
Toseef Azid
Keyword(s):  
Economic Growth ◽  
Developing Countries ◽  
Developing Economies ◽  
Labour Force ◽  
Trade Openness ◽  
Content Type ◽  
Long Run ◽  
Speed Up ◽  
Determinants Of Economic Growth ◽  
The Relationship

Purpose – This paper aims to establish a relationship between trade openness and economic growth in the context of the developing countries. This study has proposed a new measure of trade openness to the literature, as the available measures are flawed. Design/methodology/approach – Empirical analyses are carried out with the help of panel econometric techniques. Findings – The main finding of the paper is that the relationship between trade openness and economic growth is positive and statistically significant for developing countries. Besides trade openness, other determinants of economic growth such as investment and labour force are also significantly related with economic growth and carry expected coefficients. Further, it is found that frequent fluctuations in prices are detrimental to long-run economic growth. Practical implications – Therefore, the developing countries are suggested to speed up the process of trade liberalization and also pay favourable attention to other determinants of economic growth to achieve high economic growth. Originality/value – The authors have used a new measure of trade openness apart from the conventional trade volume measure of trade openness.

Structural change and economic growth in selected emerging economies

2015 ◽  
Vol 14 (2) ◽  
pp. 98-116 ◽  
Author(s):  
Muhamed Zulkhibri ◽  
Ismaeel Naiya ◽  
Reza Ghazal
Keyword(s):  
Economic Growth ◽  
Structural Change ◽  
Panel Cointegration ◽  
Growth Equation ◽  
Content Type ◽  
Long Run ◽  
Equilibrium Relationship ◽  
The Impact ◽  
The Relationship ◽  
Long Run Equilibrium

Purpose – This paper aims to investigate the relationship between structural change and economic growth for a panel of four developing countries, namely, Malaysia, Nigeria, Turkey and Indonesia over 1960-2010. Design/methodology/approach – The study extent the growth equation by incorporating degree of openness, labour and investment and construct structural change indices – modified Lilien index and the norm of absolute values. It utilizes the recently developed panel cointegration techniques to test and estimate the long-run equilibrium of the growth equation. Findings – The results confirm that structural change and economic growth are cointegrated at the panel level, indicating the presence of long-run equilibrium relationship. However, the impact of structural change on economic growth seems to be small and evolve slowly. Originality/value – The findings indicate the need for policymakers to identify the binding constraints that impede growth and the importance of institutionalize policy to encourage investment in productive sectors.

scholarly journals Economic Development, CO2 Emissions and Energy Use Nexus-Evidence from the Danube Region Countries

Energies ◽  
2021 ◽  
Vol 14 (11) ◽  
pp. 3165
Author(s):  
Eva Litavcová ◽  
Jana Chovancová
Keyword(s):  
Economic Growth ◽  
Energy Consumption ◽  
Co2 Emissions ◽  
Carbon Emissions ◽  
Bounds Testing ◽  
Mutual Cooperation ◽  
Long Run ◽  
Short Run ◽  
Danube Region ◽  
The Impact

The aim of this study is to examine the empirical cointegration, long-run and short-run dynamics and causal relationships between carbon emissions, energy consumption and economic growth in 14 Danube region countries over the period of 1990–2019. The autoregressive distributed lag (ARDL) bounds testing methodology was applied for each of the examined variables as a dependent variable. Limited by the length of the time series, we excluded two countries from the analysis and obtained valid results for the others for 26 of 36 ARDL models. The ARDL bounds reliably confirmed long-run cointegration between carbon emissions, energy consumption and economic growth in Austria, Czechia, Slovakia, and Slovenia. Economic growth and energy consumption have a significant impact on carbon emissions in the long-run in all of these four countries; in the short-run, the impact of economic growth is significant in Austria. Likewise, when examining cointegration between energy consumption, carbon emissions, and economic growth in the short-run, a significant contribution of CO2 emissions on energy consumptions for seven countries was found as a result of nine valid models. The results contribute to the information base essential for making responsible and informed decisions by policymakers and other stakeholders in individual countries. Moreover, they can serve as a platform for mutual cooperation and cohesion among countries in this region.

Antecedents of horizontal logistics collaboration in agri-food supply chains

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ismail Badraoui ◽  
Ivo van der Lans ◽  
Youssef Boulaksil ◽  
Jack G.A.J. van der Vorst
Keyword(s):  
Supply Chains ◽  
Food Supply ◽  
Structural Equation ◽  
The Body ◽  
Equation Modeling ◽  
Content Type ◽  
Operational Conditions ◽  
Food Supply Chains ◽  
The Impact ◽  
The Relationship

PurposeThis study investigates the impact of agri-food supply chains (AFSCs) characteristics on the antecedents of horizontal logistics collaboration (HLC). Specifically, the study compares the relationship between collaboration activities and outcomes for companies in and outside AFSCs.Design/methodology/approachFirst, a survey was used to collect data from different industries. Second, confirmatory factor analysis and structural equation modeling were applied to compare the measurement and structural models from different industry categories.FindingsThe results support the premise that collaboration improves trust and commitment in the relationship, which in turn enhance satisfaction. The results also show the existence of a minor influence of AFSCs characteristics on HLC antecedents, in the form of an indirect impact of dedicated investments on commitment.Practical implicationsThe factors having a significant influence on the collaboration outcomes and their respective effects are generally similar across food and nonfood supply chains, providing opportunities for interdisciplinary and collaboration experiences.Originality/valueThis research contributes to the body of knowledge on interfirm collaboration by considering the specificities of HLC. It also highlights the importance of conducting contingency research on collaborative experiences, as firms from different industry contexts operate under distinct operational conditions.

The relationship between financial development and economic growth in Eswatini (formerly Swaziland)

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Siphe-okuhle Fakudze ◽  
Asrat Tsegaye ◽  
Kin Sibanda
Keyword(s):  
Economic Growth ◽  
Granger Causality ◽  
Financial Development ◽  
Granger Causality Test ◽  
Causality Test ◽  
Content Type ◽  
Distributed Lag ◽  
Long Run ◽  
Short Run ◽  
The Relationship

PurposeThe paper examined the relationship between financial development and economic growth for the period 1996 to 2018 in Eswatini.Design/methodology/approachThe Autoregressive Distributed Lag bounds test (ARDL) was employed to determine the long-run and short-run dynamics of the link between the variables of interest. The Granger causality test was also performed to establish the direction of causality between financial development and economic growth.FindingsThe ARDL results revealed that there is a long-run relationship between financial development and economic growth. The Granger causality test revealed bidirectional causality between money supply and economic growth, and unidirectional causality running from economic growth to financial development. The results highlight that economic growth exerts a positive and significant influence on financial development, validating the demand following hypothesis in Eswatini.Practical implicationsPolicymakers should formulate policies that aims to engineer more economic growth. The policies should strike a balance between deploying funds necessary to stimulate investment and enhancing productivity in order to enliven economic growth in Eswatini.Originality/valueThe study investigates the finance-growth linkage using time series analysis. It determines the long-run and short-run dynamics of this relationship and examines the Granger causality outcomes.

Macroeconomic determinants of trade openness: empirical investigation of SAARC region

2018 ◽  
Vol 12 (2) ◽  
pp. 151-161 ◽  
Author(s):  
Muhammad Tahir ◽  
SAF Hasnu ◽  
Mario Ruiz Estrada
Keyword(s):  
Regional Cooperation ◽  
Labour Force ◽  
Trade Openness ◽  
Least Square Method ◽  
Least Square ◽  
Content Type ◽  
Currency Exchange ◽  
Long Run ◽  
Macroeconomic Determinants ◽  
The Impact

Purpose Trade openness plays a significant role in the growth process of countries. The purpose of this paper is to examine the impact of macroeconomic determinants on the trade openness of countries. Design/methodology/approach The study focuses on the South Asian Association for Regional Cooperation (SAARC) member countries and the data used were from 1971 to 2011. Panel data econometrics techniques and two stages least square method (TSLS) are used to carry out empirical analysis and robustness testing. Findings The main finding of the paper is that macroeconomic determinants such as investment both in physical and human capital and per capita gross domestic product (GDP) positively affect trade openness. Further, the size of labour force and currency exchange rate has also impacted trade openness negatively and significantly. Practical implications It implies that efficient macroeconomic management matters for higher trade openness. The sampled developing countries are suggested to pay favourable attention to macroeconomic variables if they want to grow in the long run through outward-oriented policies. Originality/value This paper is an original contribution in the context of SAARC countries by focusing on the relationship between macroeconomic determinants and trade openness.

scholarly journals The Impact of Industrialization, Trade Openness, Financial Development, and Energy Consumption on Economic Growth in Indonesia

Economies ◽  
2021 ◽  
Vol 9 (4) ◽  
pp. 174
Author(s):  
Khalid Eltayeb Elfaki ◽  
Rossanto Dwi Handoyo ◽  
Kabiru Hannafi Ibrahim
Keyword(s):  
Economic Growth ◽  
Energy Consumption ◽  
Least Squares ◽  
Financial Development ◽  
Correction Term ◽  
Trade Openness ◽  
Ordinary Least Squares ◽  
Distributed Lag ◽  
Long Run ◽  
The Impact

This study aimed to scrutinize the impact of financial development, energy consumption, industrialization, and trade openness on economic growth in Indonesia over the period 1984–2018. To do so, the study employed the autoregressive distributed lag (ARDL) model to estimate the long-run and short-run nexus among the variables. Furthermore, fully modified ordinary least squares (FMOLS), dynamic least squares (DOLS), and canonical cointegrating regression (CCR) were used for a more robust examination of the empirical findings. The result of cointegration confirms the presence of cointegration among the variables. Findings from the ARDL indicate that industrialization, energy consumption, and financial development (measured by domestic credit) positively influence economic growth in the long run. However, financial development (measured by money supply) and trade openness demonstrate a negative effect on economic growth. The positive nexus among industrialization, financial development, energy consumption, and economic growth explains that these variables were stimulating growth in Indonesia. The error correction term indicates a 68% annual adjustment from any deviation in the previous period’s long-run equilibrium economic growth. These findings provide a strong testimony that industrialization and financial development are key to sustained long-run economic growth in Indonesia.

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