When The Last Tree Dies, The Last Man Dies: Do Forests Hold The Key To Survival In Ghana? A Critical Analysis Using The Bootstrapped Rolling Window Granger Causality Test Approach

Abstract This paper investigates the role of forests in the life expectancy of people in Ghana. We test whether the extinction of forests will inevitably lead to extinction of people in Ghana. We first examined the causal relationship between life expectancy and deforestation using the full sample bootstrap Granger causality test approach and find causality to run from deforestation to life expectancy with no feedback from life expectancy to deforestation. Testing for parameter stability, we found the short run and long run parameters of the estimated Vector Auto Regressive models to be unstable. A time-varying approach, the rolling window bootstrapped Granger causality test was then employed to investigate the causal relationship between life expectancy and deforestation. The results showed that deforestation has a negative effect on life expectancy, confirming the widely accepted saying that the health of forests is inextricably linked to the health of mankind. The empirical results further show that, on trend higher life expectancy increases the rate of deforestation in Ghana. Highlighting the importance of the role of forests in influencing life expectancy in Ghana, we recommend awareness creation on the role of forests in supporting human life and also extensive afforestation programs to reduce the rate of deforestation in Ghana. This, we believe, will reduce the spread of vector borne diseases such as malaria and reduce the surge in respiratory diseases which shorten the life span of Ghanaians.JEL codesQ23, Q50, Q53, Q58, Q58

Download Full-text

TRADE OPENNESS AND ECONOMIC GROWTH: EMPIRICAL EVIDENCE FROM INDIA

Journal of Business Economics and Management ◽

10.3846/16111699.2012.720587 ◽

2014 ◽

Vol 16 (1) ◽

pp. 188-205 ◽

Cited By ~ 23

Author(s):

Qazi Muhammad Adnan Hye ◽

Wee-Yeap Lau

Keyword(s):

Economic Growth ◽

Human Capital ◽

Granger Causality ◽

Trade Openness ◽

Granger Causality Test ◽

Causality Test ◽

Long Run ◽

Rolling Window ◽

Short Run ◽

The Impact

The main objective of this study is to develop first time trade openness index and use this index to examine the link between trade openness and economic growth in case of India. This study employs a new endogenous growth model for theoretical support, auto-regressive distributive lag model and rolling window regression method in order to determine long run and short run association between trade openness and economic growth. Further granger causality test is used to determine the long run and short run causal direction. The results reveal that human capital and physical capital are positively related to economic growth in the long run. On the other hand, trade openness index negatively impacts on economic growth in the long run. The new evidence is provided by the rolling window regression results i.e. the impact of trade openness index on economic growth is not stable throughout the sample. In the short run trade openness index is positively related to economic growth. The result of granger causality test confirms the validity of trade openness-led growth and human capital-led growth hypothesis in the short run and long run.

Download Full-text

The direction of possible causal relationship between financial development and economic growth in Namibia

Journal of Economic and Financial Sciences ◽

10.4102/jef.v4i2.325 ◽

2011 ◽

Vol 4 (2) ◽

pp. 351-366

Author(s):

Abel N. Sindano ◽

Esau Kaakunga

Keyword(s):

Economic Growth ◽

Causal Relationship ◽

Granger Causality ◽

Financial Development ◽

Industrial Development ◽

Small And Medium Enterprises ◽

Granger Causality Test ◽

Causality Test ◽

Long Run ◽

Medium Enterprises

The study investigates the causal relationship between financial development and economic growth in Namibia. In order to test for the existence of long-run relationships between the variables, the study employs a cointegration and vector error correction model (VECM) technique. The Granger causality test was applied to the variables to test for the direction of causation between variables. The results show that there is a stable long-run relationship between financial development and economic growth. The Granger causality test indicates that the causality runs from economic growth to financial development. The results suggest that the real sector of the economy should be developed further in order to stimulate further development in the economy through policy interventions like industrial development to diversify the economic base, enhance the performance of small and medium enterprises, and improve the performance of the tourism sector, which has great potential for promoting growth.

Download Full-text

Trade Openness and Economic Growth of Tanzania

Asian Journal of Economics Business and Accounting ◽

10.9734/ajeba/2019/v12i330154 ◽

2019 ◽

pp. 1-10

Author(s):

Salama Yusuf ◽

Moza R. Omar

Keyword(s):

Economic Growth ◽

Causal Relationship ◽

Granger Causality ◽

Trade Openness ◽

Granger Causality Test ◽

Economic Problem ◽

Causality Test ◽

Foreign Earnings ◽

Long Run ◽

The Impact

Trade openness is very crucial in the achievement of any rapid economic take off for any country. Realizing that in 1996, Tanzania government initiated economic recovery program to address the economic problem. One among them was Trade liberalization implementation. This paper examines the impact of trade openness on economic growth in Tanzania for the period 1981 to 2017. The study utilized co-integration and Vector Error Correction Mechanism (VECM) Approach to test the relationship between trade openness and economic growth and granger causality test to examine the causal relationship between variable. The unit root tests showed that all variables were integrated after taking first difference, the Johansen co-integration result showed that the variables were co-integrated. The VECM estimate showed that there is positive long run relationship between trade openness and economic growth in Tanzania over the study period, this positive result of trade openness is possibly attributable to the fact that Tanzania unlocked its borders to international trades. In addition, granger causality test revealed that, there is no causal relationship between Trade openness and economic growth in Tanzania. Based on these findings, this study recommended that Government should encourage the production of domestic products for export purpose by developing more domestic industries and attracts more investors in the economy which will lead to increase the per capita income as well as foreign earnings that will promote economic growth of Tanzania.

Download Full-text

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

African Journal of Economic and Management Studies ◽

10.1108/ajems-06-2021-0291 ◽

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.

Download Full-text

Dynamic linkage between nifty-fifty and sectorial indices of national stock exchange

American Journal of Economics and Business Management ◽

10.31150/ajebm.v3i2.148 ◽

2020 ◽

Vol 3 (2) ◽

pp. 17-27

Author(s):

Kamaljit Singh ◽

Vinod Kumar

Keyword(s):

Causal Relationship ◽

Granger Causality ◽

Unit Root ◽

Service Sector ◽

Banking Sector ◽

Stock Exchange ◽

Unit Root Test ◽

Granger Causality Test ◽

Financial Service ◽

Causality Test

The main objective of this paper is to analyze the trend and pattern of the Nifty-Fifty and sectorial indices. An attempt has been also made to find out the causal relationship among the Nifty-Fifty and NSE sectorial Indices. The unit root test and Granger-causality test has been applied to check the causal relationship between Nifty-Fifty and sectorial indices. The finding of the study shows that the financial service sector had performed better and followed by the banking sector among all the indices while the Pharma sector and the Realty sector were Under-performed in comparison to other indices. The Nifty-Fifty has been found less volatile in comparison to other sectorial indices however Realty sector indices show the highest volatility during the study period.

Download Full-text

Testing for the existence of the Environmental Kuznets Curve (EKC) for CO2 emissions in Ghana: evidence from the bootstrap rolling window Granger causality test

Environmental Science and Pollution Research ◽

10.1007/s11356-020-10600-x ◽

2020 ◽

Vol 28 (2) ◽

pp. 2119-2131

Author(s):

Michael Kaku Minlah ◽

Xibao Zhang

Keyword(s):

Granger Causality ◽

Co2 Emissions ◽

Environmental Kuznets Curve ◽

Granger Causality Test ◽

Kuznets Curve ◽

Causality Test ◽

Rolling Window

Download Full-text

ODA and Provincial Economic Growth in Vietnam

International Finance and Banking ◽

10.5296/ifb.v6i1.14311 ◽

2019 ◽

Vol 6 (1) ◽

pp. 1

Author(s):

Dang Ngoc Duc ◽

Do Thi Ngoc Lan

Keyword(s):

Economic Growth ◽

Panel Data ◽

Empirical Evidence ◽

Case Studies ◽

Causal Relationship ◽

Granger Causality ◽

Focal Point ◽

Causal Effect ◽

Granger Causality Test ◽

Causality Test

The focal point of this paper is focused on assessing the causal relationship between ODA and economic growth in the localities of Vietnam. This research uses panel data of ODA and GDP from 63 provinces of Vietnam by using Granger Causality test. The results showed that ODA has a causal effect on economic growth (GDP) and vice versa, economic growth decides to attract ODA in provinces in Vietnam. This result complements studies on the causal relationship between ODA and economic growth using new empirical evidence through case studies in the provinces of Vietnam.

Download Full-text

Human Capital and Economic Growth in Morocco: Evidence from Bayesian Model Averaging

International Business Research ◽

10.5539/ibr.v10n12p167 ◽

2017 ◽

Vol 10 (12) ◽

pp. 167 ◽

Cited By ~ 1

Author(s):

Omar Essardi ◽

Redouane Razzouk

Keyword(s):

Economic Growth ◽

Human Capital ◽

Life Expectancy ◽

Granger Causality ◽

Bayesian Model ◽

Bayesian Model Averaging ◽

Model Averaging ◽

Granger Causality Test ◽

Causality Test

The paper investigates the relationship between human capital and economic growth in Morocco during the period from 1965 to 2015. In order to test this relationship we estimated a growth function using firstly the Johansen multivariate cointegration test and the Granger causality test. Secondly, we used the method of the Bayesian Model Averaging (BMA) that takes into consideration the uncertainty related to the specification of the model studied. In the theoretical literature, the difficulty of measuring human capital is often stressed. In order to overcome this problem, we use four proxies of human capital: first, we employ the average years of schooling. Second, we use the index of the gap in life expectancy between Morocco and developed countries. Third, we integrate the qualitative aspects of education and health by constructing two composite indicators of human capital using Principal Component Analysis (PCA) method.The main results of regression analysis confirm that in the specification of determinants of GDP per worker the average years of total schooling, the life expectancy index and the indicator of quality of health affect positively and significantly level of GDP per worker. However, in the specification of determinants of the growth of the GDP per worker, we found there is no proxy of human capital that affects significantly the growth of the GDP per worker.In addition, the results of Granger causality test show that only the indicator of quality of health that cause the GDP per worker. As well, these results show that the average years of total schooling and the indicator of quality of education cause the growth of GDP per worker. We suggest that the Moroccan authorities should make additional efforts to raise the level of quality of human capital especially in the health sector and increase the productivity of both public and private investment.

Download Full-text

The relationship between energy consumption and gross domestic product in Hong Kong (1992–2015): Evidence from sectoral analysis and implications on future energy policy

Energy & Environment ◽

10.1177/0958305x19854542 ◽

2019 ◽

Vol 31 (2) ◽

pp. 215-236

Author(s):

Ruixiaoxiao Zhang ◽

Geoffrey QP Shen ◽

Meng Ni ◽

Johnny Wong

Keyword(s):

Time Series ◽

Energy Consumption ◽

Gross Domestic Product ◽

Causal Relationship ◽

Granger Causality ◽

Value Added ◽

Granger Causality Test ◽

Domestic Product ◽

Causality Test ◽

Per Capita

The causal relationship between energy consumption and gross domestic product in Hong Kong from 1992 to 2015 is investigated in this study. Different from the previous studies focusing on the causal relationship between total energy consumption and total gross domestic product per capita, this study further investigates the causal relationship from sectoral perspective, including residential, commercial, industrial and transportation sectors. For each sector, the time series data of sectoral energy consumption and sectoral per capita value added are collected. To conduct the Granger causality test, the unit root test is first applied to analyse the stationarity of time series. The cointegration test is then employed to examine whether causal relationship exists in long-term. Finally, based on the aforementioned tests, both vector error correction model and vector autoregression model can be selected to determine the Granger causality between time series. It is interesting to find that the sectoral energy consumption and corresponding sectoral per capita value-added exhibit quite different causal relationships. For both residential sector and commercial sectors, a unidirectional causal relationship is found running from the sectoral per capita value added to sectoral energy consumption. Oppositely, for industrial sector and transportation sector, a unidirectional causal relationship is found running from sectoral energy consumption to sectoral per capita value added. Regarding the Granger causality test results, the indicative suggestions on energy conservation policies, energy efficiency policies and greenhouse gas emission reduction policies are discussed based on the background of Hong Kong’s economic structure and fuel types.

Download Full-text