scholarly journals Nexus Among Tourism, Environmental Degradation, Inward FDI and Economic Growth: Fresh Evidence from ASEAN Countries

2020 ◽  
Author(s):  
Muhammad Azam ◽  
Sameena Noor ◽  
Muhammad Atif Nawaz
Keyword(s):  
Economic Growth ◽  
Environmental Degradation ◽  
Causal Link ◽  
Positive Influence ◽  
Jel Classification ◽  
Pooled Mean Group ◽  
Long Run ◽  
Short Run ◽  
Asean Countries ◽  
Tourism Arrivals

Abstract This study aims to investigate the linkage among tourism, foreign direct investment, environmental degradation by CO2 emissions and economic growth in five countries from Association of Southeast Asian Nations (ASEAN) over 1995–2017. The outcomes of pooled mean group (PMG) estimator reveal that FDI and international tourism arrivals have a significantly positive influence on economic growth both in the short-run and the long-run. The association between growth and CO2 emissions is found negative and significant. The Granger causality result reveals that there is bidirectional causality between FDI and growth, tourism and growth and FDI and tourism. A unidirectional causal link is found between CO2 emissions and growth, tourism and population and population and CO2 emissions. These findings suggest enhance more inward FDI, control environmental pollution, but also necessary to attract more tourists towards these countries, which in turn, generate revenue and boost up economic growth and development.JEL Classification Codes: F21; O13; O47; Z32

scholarly journals Effects of Corruption and the Black Economy on Economic Growth in the CFA Franc Zone Countries

2021 ◽  
pp. 33-45
Author(s):  
Raphaël Erick Assoa Essono ◽  
Ibrahim Nji Ngouhouo
Keyword(s):  
Economic Growth ◽  
Negative Relationship ◽  
Underground Economy ◽  
Group Method ◽  
Franc Zone ◽  
Pooled Mean Group ◽  
Long Run ◽  
Short Run ◽  
Cfa Franc Zone ◽  
Cfa Franc

We conducted this study to empirically analyse the effects of corruption and the underground economy on economic growth in the case of the CFA franc zone countries over the period 2000-2016. To do so, we have carried out econometric estimations using panel data. Our empirical results obtained by the PMG (Pooled Mean Group) method confirm a negative relationship between economic growth and the underground economy in the short and long term. However, the long-run effect of corruption on economic growth is positive, while this effect becomes negative in the short run. The results could provide insight into different ways of fighting corruption and the shadow economy.

scholarly journals Energy Consumption, Environmental Degradation and Growth: A Panel Data Analysis

2020 ◽  
pp. 1-6
Author(s):  
Sayed Kushairi Sayed Nordin ◽  
Siok Kun Sek
Keyword(s):  
Economic Growth ◽  
Carbon Dioxide ◽  
Energy Consumption ◽  
Environmental Degradation ◽  
Low Income ◽  
Cointegration Test ◽  
Low Income Countries ◽  
Long Run ◽  
Short Run ◽  
The Relationship

Energy is essential as an input to develop economic, although it could bring negative effect on environmental quality. The relationship between energy consumption, environmental degradation and economic growth have been widely studied, but there is no consistency in the relationship. The objectives of this study are to determine the short-run relationship (one-way or bidirectional) and to reveal the long-run relationship for each pair of variables. The second-generation panel unit root and cointegration test were used in the analysis. Breusch-Pagan LM test suggests that there is a cross-sectional dependency for all the models and integrated of order one, I (1). Cointegration test indicates that economic growth has long-relationship with carbon dioxide and energy consumption in high-income countries. In low-income countries, carbon dioxide has a long-run relationship with energy consumption and economic growth. In the short run, we have evidence of a bidirectional relationship between energy consumption and economic growth in high-income countries but a one-way relationship in low-income countries. Overall, it can be concluded that the three variables are related. This study develops a deeper awareness and understanding of the relationship between the variables in distinct levels of economies. Keywords: energy consumption; CO2, economic growth

Are Merchandise Exports and FDI Inflows an Engine of Growth for ASEAN-10 Countries? New Evidence Using the Pooled Mean Group Estimation Method

2018 ◽  
Vol 12 (4) ◽  
pp. 414-430 ◽  
Author(s):  
Soo Khoon Goh ◽  
Koi Nyen Wong ◽  
Chee Lam Yew
Keyword(s):  
Panel Data ◽  
Regional Economy ◽  
Driving Forces ◽  
Early Stage ◽  
Regional Growth ◽  
Estimation Method ◽  
Jel Classification ◽  
Pooled Mean Group ◽  
Long Run ◽  
Short Run

The Association of Southeast Asian Nations (ASEAN) has made remarkable economic progress in terms of rapid economic growth and expanding export trade and foreign direct investment (FDI). Theoretically speaking, both merchandise exports and FDI can be regarded as the key driving forces behind the ‘economic miracle’ of the regional economy. The major contribution of this study is that it is the first effort to empirically analyse the short-run and long-run growth effects of merchandise exports and FDI on the ASEAN-10 countries using time-series panel data. In this regard, this study aims to ascertain whether the spectacular regional growth is export- and FDI-driven, based on the ASEAN-10 panel data spanning from 1970 to 2016 using the pooled mean group (PMG) method. The findings show that merchandise exports are a key source of growth for the regional economy, attributable to the joint liberalisation efforts of the member states to expand trade and FDI. The study does not find evidence of FDI-led growth because the bulk of the FDI was invested in only a few ASEAN countries, and the minor FDI-recipient countries are at an early stage to benefit from the growth impacts of FDI, owing to lower absorptive capacity. JEL Classification: C51, F21, F23, O19

The Economic Growth–Income Inequality–Poverty Nexus and Its Impact on Environmental Degradation: Empirical Evidence from India

2021 ◽  
pp. 097639962110238
Author(s):  
Geetilaxmi Mohapatra ◽  
Arun Kumar Giri
Keyword(s):  
Economic Growth ◽  
Income Inequality ◽  
Environmental Degradation ◽  
Poverty Reduction ◽  
Positive Impact ◽  
Universal Access ◽  
Causality Test ◽  
Distributed Lag ◽  
Long Run ◽  
Short Run

This study attempts to examine the main forces affecting short-run and long-run carbon emission patterns due to changes in economic growth, income inequality and poverty in India over the period 1982–2018. For this purpose, it uses the autoregressive distributed lag (ARDL) cointegration technique and the vector error correction model (VECM) based on Granger causality tests. The stationary properties of the variables are checked using the Ng–Perron test. The results of the ARDL bounds test confirm the long-run relationship among the variables. Further, the ARDL coefficient confirms that economic growth and poverty increase carbon emissions in both the short and long run. The empirical findings of the causality test indicate the presence of short-run causality running from economic growth and poverty reduction to environmental degradation. Hence, the study recommends that policymakers must devote more attention to alleviating poverty and reducing income inequalities through redistributing transfers, investing on universal access to health and education, implementing progressive taxation policies, empowering women and enforcing the Clean India mission, which will have a positive impact on reducing environmental degradation in India. Further, the study also recommends appropriate environmental regulations that can substantially stimulate innovations to increase energy efficiency and thereby reduce carbon dioxide (CO2) emissions.

scholarly journals Nexus between Natural Resources and Environmental Degradation: Analysing the Role of Income Inequality and Renewable Energy

2021 ◽  
Vol 13 (15) ◽  
pp. 8364
Author(s):  
Yongming Wang ◽  
Irfan Uddin ◽  
Yingmei Gong
Keyword(s):  
Renewable Energy ◽  
Income Inequality ◽  
Natural Resources ◽  
Environmental Quality ◽  
Causal Link ◽  
Positive Influence ◽  
Long Run ◽  
Carbon Release ◽  
Short Run ◽  
Sustainable Power

Globally, as the environment deteriorates, use of renewable energy is increasing. The discrepancy between inequalities, sustainable sources, and natural resources, on the other hand, is enormous. As a consequence, the current research simulated the link between income inequality, renewable energy, and carbon emissions from 1990 to 2018. The long run and short run interaction were estimated using an autoregressive distribution lag (ARDL) model. According to the study’s findings, improvements in sustainable power, as well as income inequality, are producing a rise in environmental quality. Natural resources seem to have a significantly positive influence on the environment’s quality. Furthermore, the study found that financial development and environmental quality have a bidirectional causal link. According to the conclusions of this study, government authorities should support the use of renewable energy, i.e., sources to optimize carbon release.

Investigating the Presence of Environmental Kuznets Curve Hypothesis in India and China: An Autoregressive Distributive Lag Approach

2019 ◽  
Vol 8 (2) ◽  
pp. 194-210
Author(s):  
Ritu Rani ◽  
Naresh Kumar
Keyword(s):  
Economic Growth ◽  
Environmental Degradation ◽  
Environmental Kuznets Curve ◽  
Kuznets Curve ◽  
Annual Growth Rate ◽  
Ekc Hypothesis ◽  
Causality Test ◽  
Long Run ◽  
Short Run ◽  
India And China

The Environmental Kuznets Curve (EKC) hypothesis advocates a reversed U-shaped association between different pollutants and per capita income. EKC postulates that speedy growth certainly results in environmental degradation due to glut use of natural resources and emission of pollutants. The study used carbon dioxide (CO2) emissions, economic growth, energy consumption, and the annual growth rate of population to investigate the EKC hypothesis in India and China for the period of 1971–2013. Furthermore, to explore the long-run and short-run relationship among competing variables, the autoregressive distributed lag model (ARDL) is used. Granger causality test is used to investigate the long-run and short-run causality between variables under study. The results support the EKC hypothesis in India and China, in both long-run and short-run, and inverse U-shaped association is found between CO2 emission and economic growth. Unidirectional causality seen in both countries in terms of economic growth and CO2 emissions. In addition, the coefficient of economic growth in a short-run model provides the evidence that there has been a gradual decline in environmental degradation (downward sloping of EKC) and the quality of the environment is gradually improving in China. Based on the findings, the study suggests that environmental policymakers, especially in India, should seriously address the issue of CO2 emissions as it has a tendency to move faster in the coming years.

scholarly journals Budget Deficit and Economic Growth in Sub-Saharan Africa: A PMG Approach

2020 ◽  
pp. 1-10
Author(s):  
Gbenga Oladapo Awolaja ◽  
Ikponmwosa Osagie Esefo
Keyword(s):  
Economic Growth ◽  
Significant Relationship ◽  
Budget Deficit ◽  
Estimation Method ◽  
Sub Saharan Africa ◽  
Policy Makers ◽  
Pooled Mean Group ◽  
Long Run ◽  
Short Run ◽  
Sub Saharan

The relationship between budget deficit and economic growth remains one of the widely debated topics among policy makers and economists in both developed and developing countries of the world. This paper empirically investigated the long run and short run relationship between budget deficit and economic growth in sub-Saharan Africa countries from 1991 to 2018 using Panel data for twenty (20) sub-Saharan Africa Countries. The estimation technique employed in the study was the Pooled Mean Group (PMG) estimation method and the regression results revealed that in the long run, budget deficit has a negative and significant relationship with economic growth whereas in the short run, it has a positive and significant relationship with economic growth. The study concluded that government should reduce the overall recurrent expenditure as it will help to mitigate the problem of budget deficit that leads to debt accumulation in sub-Saharan Africa countries and increase expenditure on developmental projects.

scholarly journals Critical Analysis of Governance, Economic Freedom, and Human Capital Implications on Sustainable Economic Growth: Evidence from Sub-Saharan Africa

2021 ◽  
Vol 7 (08) ◽  
Author(s):  
Yusuf Ayotunde Ayodeji
Keyword(s):  
Economic Growth ◽  
Human Capital ◽  
Causal Relationship ◽  
Economic Freedom ◽  
Sub Saharan Africa ◽  
Pooled Mean Group ◽  
Long Run ◽  
Short Run ◽  
Sub Saharan ◽  
Sustainable Economic Growth

In the recent time, the attention of scholars have shifted towards deeper understanding of factors that drives the achievement of sustainable economic growth, but yet factors such as governance, economic freedom, and human capital have not been exhaustively investigated, especially within the context of Sub-Saharan Africa (SSA). Thus, this study investigates the implications of governance, economic freedom, and human capital on the sustainability of economic growth in the SSA, usingpanel data that spanned between 1996 and 2018, and employed a Pooled Mean Group (PMG) estimator for the analysis. This study found governance, economic, and human capital to have a positive and significant causal relationship with economic growth in the long-run, while only economic freedom was found to have a negative and significant causal relationship with economic growth in the short-run. In addition, this study found that in case of disequilibrium, the model has a convergent speed of adjustment of about 10.8%. The study implications were discussed in the study.

scholarly journals Asymmetric Effects of Remittances on Economic Growth in Nigeria: Evidence From Non-linear ARDL Analysis

2020 ◽  
Author(s):  
David Oluseun Olayungbo ◽  
Clement Olalekan Olaniyi ◽  
Titus Ayobami Ojeyinka
Keyword(s):  
Economic Growth ◽  
Jel Classification ◽  
Asymmetric Effects ◽  
Distributed Lag ◽  
Autoregressive Distributed Lag ◽  
Long Run ◽  
Short Run ◽  
Linear Effects ◽  
Nonlinear Autoregressive ◽  
Nardl Model

Abstract Most of the extant studies on remittance-growth nexus have been limited to symmetric and linear effects of remittance on economic growth. Unlike previous studies, we examine asymmetric and nonlinear association between remittance and economic growth within the framework of nonlinear autoregressive distributed lag (NARDL) model utilizing Nigeria’s data from 1981 to 2018. The study finds the evidence to support that growth responds asymmetrically to remittances only in the long-run. It is established that both positive and negative variations in remittance inflows dampen the productive base of the economy in the long-run while positive and negative changes in remittances are growth-retarding and growth-enhancing respectively in the short-run. The study, therefore, concludes that persistent increase in remittance inflows have not been channeled to productive ventures that are capable of stimulating growth in Nigeria. Thus, consistent with the view of pessimistic theorists, continual inflows of remittances to Nigeria could not be termed brain gains to the economy. JEL CLASSIFICATION: F24, F43, O11

scholarly journals Heterogeneous Analysis of Pollution Abatement via Renewable and Non-Renewable Energy: Lessons from Investment in G20 Nations

2021 ◽  
Author(s):  
Kazeem Bello Ajide ◽  
Ekundayo Peter Mesagan
Keyword(s):  
Renewable Energy ◽  
Carbon Emissions ◽  
Capital Investment ◽  
Pollution Abatement ◽  
Jel Classification ◽  
Cross Sectional ◽  
Pooled Mean Group ◽  
Long Run ◽  
Short Run ◽  
Cross Sectional Dependence

Abstract This study analyses the role of renewable and non-renewable energy in pollution reduction through the capital investment channel in G20 economies between 1990 and 2017. We consider cross-sectional dependence since the countries are heterogeneous and cross-sectionally dependent using the pooled mean group approach. Findings reveal that renewable energy negatively impacts carbon emissions in both the short- and long-run, while non-renewable energy positively affects carbon emissions in both the short- and long-run. Again, results show that capital investment lowers pollution in the short-run but increases it in the long-run. Lastly, we find that capital investment interacts with renewable energy to reduce pollution in both short- and long-run, while its interaction with non-renewable energy expands pollution in both short- and long-run. We, therefore, conclude that capital investment provides an important channel to reduce pollution in G20 nations and recommend that if energy consumption is to work through the capital investment channel to lower pollution in the G20, the proportion of renewable energy must increase relative to non-renewable energy in their energy mix.JEL Classification: Q41; Q42; Q53; F23; O50.

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