Corruption – Poverty Nexus: Evidence from Panel ARDL Approach for SAARC Countries

2022 ◽  
pp. 205789112110694
Author(s):  
Thanabalasingam Vinayagathasan ◽  
Ramasamy Ramesh
Keyword(s):  
Random Effect ◽  
Participation Rate ◽  
Women's Labor ◽  
Causality Test ◽  
Panel Ardl ◽  
Pooled Mean Group ◽  
Long Run ◽  
Ardl Approach ◽  
Short Run ◽  
Women's Labor Force Participation

The article intends to investigate the relationship between corruption and poverty based on the panel data of SAARC countries over the period 1996–2019. We employed the panel ARDL of pooled mean group (PMG) technique to analyze the data and focus on capability poverty, using the human development index (HDI) as a proxy for poverty. The empirical findings of PMG of the ARDL model suggest that an increase in corruption score (COC) (i.e. decrease in corruption) and increase in women’s labor force participation rate (WLFPR) seem to have a significant impact either in eradicating poverty or increasing social welfare in the long run as well as in the short run. A random effect (RE) model also identified a significant positive relationship between corruption score and HDI, and WLFPR and HDI. A Dumitrescu-Hurlin pairwise panel Granger non-causality test detected a bilateral causality relationship between COC and HDI, and WLFPR and HDI, while unilateral causality ran from WLFPR to COC. The article contributes to examining the dynamics between corruption and poverty from the governance aspect, taking South Asia as a case study.

AN ANALYSIS OF THE MANAGEMENT OF FISCAL DEFICIT OF PAKISTAN: AN ECONOMETRIC STUDY OF AUTO-REGRESSIVE DISTRIBUTIVE LAGS (ARDL) APPROACH

2018 ◽  
pp. 1-30 ◽  
Author(s):  
KHURRAM EJAZ CHANDIA ◽  
MUHAMMAD BADAR IQBAL ◽  
SAIRA AZIZ ◽  
IFRA GUL ◽  
BINESH SARWAR
Keyword(s):  
Fiscal Policy ◽  
Federal Government ◽  
Government Expenditures ◽  
Fiscal Deficit ◽  
Policy Reforms ◽  
Causality Test ◽  
Long Run ◽  
Ardl Approach ◽  
Short Run ◽  
Auto Regressive

Fiscal policy is an essential ingredient of economic performance. The fiscal policy is considered as a short-run measure; however, this has long-lasting outcomes for any economy. The current study has examined the connection among different constituents of fiscal policy, i.e., federal government revenues and federal government expenditures; federal government revenues and different components of federal government expenditures; federal government expenditures and different components of federal government revenues and fiscal deficit and influential budgetary variables in the context of the economy of Pakistan. The study has empirically investigated the relationship among the budgetary variables for Pakistan from 1979 to 2017. For data analysis, time-series econometric techniques such as auto-regressive distributive lag (ARDL) approach and Granger causality test have been employed. The results of ARDL bounds test approach suggest the existence of long-run equilibrium relationship among the variables. The result of CUSUM and CUSUMSQ shows the stability of functional relationship tested in this study, which means that model is a useful instrument for policymaking. So, a rise or fall in budgetary variables causes changes in fiscal deficit in long run. The results of study endorse the proof of spent-and-tax hypothesis in the economy of Pakistan. The study suggests the need for extensive fiscal policy reforms in Pakistan.

scholarly journals Fiscal Sustainability in the European Countries: A Panel ARDL Approach and a Dynamic Panel Threshold Model

2020 ◽  
Vol 12 (20) ◽  
pp. 8505 ◽  
Author(s):  
María del Carmen Ramos-Herrera ◽  
María A. Prats
Keyword(s):  
Threshold Model ◽  
Fiscal Sustainability ◽  
Causality Test ◽  
Panel Ardl ◽  
Long Run ◽  
Ardl Approach ◽  
Panel Granger Causality ◽  
Potential Gdp ◽  
The Government ◽  
First Time

We analyze the fiscal sustainability hypothesis for a panel of 20 European Union countries from 2000 to 2019. In particular, we employ new econometric methodologies that, to the best of our knowledge, are applied for the first time to the study of sovereign fiscal policy sustainability in these economies. Specifically, we estimate the panel ARDL technique, distinguishing between short- and long-run coefficients because the order of integration of our variables is not the same. Moreover, a panel threshold model with endogeneity is considered to investigate whether, departing from a particular threshold, there is different behavior between the government primary balance and public debt, both taken as a ratio of potential GDP. Finally, the panel Granger causality test is implemented to determine the direction of causality or the existence of bidirectional causality.

The Determinants of Health Expenditures in Tunisia

2018 ◽  
pp. 253-267
Author(s):  
Sami Chaabouni ◽  
Chokri Abednnadher
Keyword(s):  
Health Expenditures ◽  
Determinants Of Health ◽  
Causality Test ◽  
Distributed Lag ◽  
Autoregressive Distributed Lag ◽  
Capita Health Expenditure ◽  
Long Run ◽  
Ardl Approach ◽  
Short Run ◽  
The One

This article examines the determinants of health expenditures in Tunisia during the period 1961-2008, using the Autoregressive Distributed Lag (ARDL) approach by Pesaran et al. (2001). The results of the bounds test show that there is a stable long-run relationship between per capita health expenditure, GDP, population ageing, medical density and environmental quality. In fact, on the one hand there are the short-run and long-run results which reveal that health care is a necessity, not a luxury good. On the other hand, results of the causality test show that there is a bidirectional causal flow from health expenditures to income, both in the short and in the long run.

Liquidity and Profitability: A Co-Integration Study

2018 ◽  
Vol 21 (02) ◽  
pp. 1850011
Author(s):  
Khairul Alom
Keyword(s):  
Firm Size ◽  
Stock Exchange ◽  
Response Analysis ◽  
Causality Test ◽  
Speed Of Adjustment ◽  
Financial Firms ◽  
Pooled Mean Group ◽  
Long Run ◽  
Short Run

This paper examines the relationship between liquidity and profitability of the non-financial firms listed in Dhaka Stock Exchange (DSE) for the period of 1998–2013. Pedroni and Johansen co-integration results show that liquidity, profitability, firm size and long-term debt (LTD) have significant co-integration relationship in the long run. The causality test results expose that a strong bidirectional casual relationship exist among the variables of liquidity and profitability, LTD and liquidity profitability and firm size in the short run. Also, there exists unidirectional causality among the variables of firm size and liquidity, profitability and LTD in the short run. Furthermore, Pooled Mean Group results show that profitability, firm size and LTD have long-run co-integration relationship with liquidity. However, in the short run, profitability and LTD significantly contribute to the liquidity and the error correction mechanism shows that speed of adjustment to equilibrium is significant within the year. Impulse response analysis indicates shocks in the firm size, LTD and profitability have positive and significant impact on liquidity.

scholarly journals Dividend policy-performance nexus: PMG-ARDL approach

2021 ◽  
Vol 7 (1) ◽  
Author(s):  
Olayinka Olufisayo Akinlo ◽  
John Ayobamibo Olayiwola
Keyword(s):  
Dividend Policy ◽  
Financial Statements ◽  
Payout Policy ◽  
Policy Performance ◽  
Distributed Lag ◽  
Autoregressive Distributed Lag ◽  
Pooled Mean Group ◽  
Long Run ◽  
Ardl Approach ◽  
Short Run

AbstractThis paper examines the long run and short run link between dividend payout policy and corporate performance of quoted companies in Nigeria over the period 2001–2018. The study employs data of 80 listed companies collected from the audited financial statements of the companies and the publication of Central Bank of Nigeria. Using Pooled Mean Group-Autoregressive Distributed Lag approach, the result shows that dividend policy negatively and statistically influence performance in the short run, while in the long run the effect is positive and significant.

The Determinants of Health Expenditures in Tunisia

2014 ◽  
Vol 6 (4) ◽  
pp. 60-72 ◽  
Author(s):  
Sami Chaabouni ◽  
Chokri Abednnadher
Keyword(s):  
Health Expenditures ◽  
Determinants Of Health ◽  
Causality Test ◽  
Distributed Lag ◽  
Autoregressive Distributed Lag ◽  
Capita Health Expenditure ◽  
Long Run ◽  
Ardl Approach ◽  
Short Run ◽  
The One

This article examines the determinants of health expenditures in Tunisia during the period 1961-2008, using the Autoregressive Distributed Lag (ARDL) approach by Pesaran et al. (2001). The results of the bounds test show that there is a stable long-run relationship between per capita health expenditure, GDP, population ageing, medical density and environmental quality. In fact, on the one hand there are the short-run and long-run results which reveal that health care is a necessity, not a luxury good. On the other hand, results of the causality test show that there is a bidirectional causal flow from health expenditures to income, both in the short and in the long run.

scholarly journals Financial Innovation and Financial Inclusion Nexus in South Asian Countries: Evidence from Symmetric and Asymmetric Panel Investigation

2019 ◽  
Vol 7 (4) ◽  
pp. 61 ◽  
Author(s):  
Qamruzzaman ◽  
Wei
Keyword(s):  
South Asian ◽  
Financial Innovation ◽  
Positive Association ◽  
Wald Test ◽  
Financial Inclusion ◽  
Asian Countries ◽  
Causality Test ◽  
Panel Ardl ◽  
Long Run ◽  
Short Run

This paper examines the nexus between financial inclusion and financial innovation while incorporating financial development and remittance inflows in the case of six South Asian countries—Bangladesh, India, Pakistan, Nepal, Bhutan, and Srilanka—by employing the panel autoregressive distributed lagged model under a linear and nonlinear framework using monthly data over the period 1990M1–2018M12. Further, a Granger-causality test with System GMM specification was performed for assessing directional causality. The study findings from Panel ARDL confirmed the positive association between financial innovation and financial inclusion, which was observed both in the long run and short-run. Considering the nonlinearity in the estimation, the standard Wald test confirms the existence of an asymmetric relationship both in the short-run and in long run horizon regarding causality test results. The study findings support the feedback hypothesis that the presence of bidirectional causality between the financial innovation and financial inclusion is both in the short-run and long run. Since the study findings established a critical relationship between financial innovation and financial inclusion, therefore effective policy guidelines are suggested so that the contribution from financial inclusion and financial innovation can assist in developing a vibrant financial sector.

scholarly journals Impact of Investment in Tourism Infrastructure Development on Attracting International Visitors: A Nonlinear Panel ARDL Approach Using Vietnam’s Data

Economies ◽  
2021 ◽  
Vol 9 (3) ◽  
pp. 131
Author(s):  
Quang Hai Nguyen
Keyword(s):  
Positive Impact ◽  
Infrastructure Development ◽  
Distributed Lag ◽  
Panel Ardl ◽  
Long Run ◽  
Ardl Approach ◽  
Short Run ◽  
Using Data ◽  
International Visitors ◽  
The Impact

Investment in tourism infrastructure development to make destinations and services increasingly attractive is considered a key measure in developing a country’s tourist destinations. This paper investigates the impact of investment in tourism infrastructure components on international visitor attraction using data from Vietnam for the period 1995–2019. The results of analyzing panel data by the nonlinear Autoregressive Distributed Lag (ARDL) approach show that, in the long-run, investing in the three components of tourism infrastructure, namely transport and communications infrastructure, the hotel and restaurant industry, and recreation facilities, has a strong and positive impact on international visitor attraction. In addition, different short-run impacts of the three tourism infrastructure components on the whole market and each major international visitor market are also found.

scholarly journals Public Debt and Economic Growth Nexus in the Euro Area: A Dynamic Panel ARDL Approach

2020 ◽  
Vol 67 (3) ◽  
pp. 291-31ö
Author(s):  
Themba Gilbert Chirwa ◽  
Nicholas M. Odhiambo
Keyword(s):  
Economic Growth ◽  
Euro Area ◽  
Public Debt ◽  
Negatively Associated ◽  
Panel Ardl ◽  
Long Run ◽  
Ardl Approach ◽  
Study Results ◽  
Short Run ◽  
The Relationship

This study investigates the relationship between public debt and economic growth using panel data from 10 European Countries. Using a panel ARDL approach, the results show that public debt, government consumption, and the real exchange rate are negatively associated with economic growth both in the short- and long-run. Furthermore, investment and the real interest rate were found to be positively associated with economic growth both in the short- and long-run. Inflation and trade openness were found to have mixed results: both were negatively associated with economic growth in the long run while in the short run the relationship was positive and consistent across groups with a few exceptions. Second, the study results also showed that debt is nonlinear at the 70% threshold only in the long-run while in the short run the results were consistently negative and across groups. The study results have significant policy implications for the Stability and Growth Pact of the Euro area. It is recommended that member states should ensure fiscal sustainability by balancing their fiscal budgets to effectively reduce the accumulation of public debt as well as implementing structural reforms that will improve the efficiency of investment as well as macroeconomic stability.

scholarly journals Loan Growth and Bank Performance: A Panel ARDL Approach

2020 ◽  
Vol 23 (2) ◽  
pp. 97-108
Author(s):  
Jhabindra Pokharel
Keyword(s):  
Credit Risk ◽  
Performance Indicators ◽  
Stock Return ◽  
Distributed Lag ◽  
Panel Ardl ◽  
Autoregressive Distributed Lag ◽  
Long Run ◽  
Ardl Approach ◽  
Short Run ◽  
Loan Growth

This paper analyzed the effect of loan growth in three performance aspects, profitability, stock return and credit risk of Nepalese commercial banks applying the panel autoregressive distributed lag (ARDL) approach. To avoid the effect of the merger on loan growth 8 banks which have not merged with or acquired other institutions are taken as sample and 8-year data from each sample bank from 2012- 2019 has been sued in the study. The result showed that none of the three performance indicators is affected by the loan growth in the long-run. It is also found that the credit risk of banks does not change with the change in loan growth in the short-run as well. This indicates that banks are not aggressive in their lending. However, profitability and stock return are affected positively by the loan growth in the short-run. The findings from this study suggest to the investors in the stock market to choose the stock of bank with higher loan growth.

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