scholarly journals How Does Climate Change Affect Rice Production in Thailand? Assessing the Role of Financial Development

2022 ◽  
Author(s):  
Abbas Ali Chandio ◽  
Martinson Ankrah Twumasi ◽  
Fayyaz Ahmad ◽  
Ghulam Raza Sargani ◽  
Yuansheng Jiang
Keyword(s):  
Climate Change ◽  
Labor Force ◽  
Financial Development ◽  
Socioeconomic Development ◽  
Causal Link ◽  
Rice Production ◽  
Policy Implications ◽  
Empirical Results ◽  
Long Run ◽  
Domestic Credit

Abstract The study aims to examine the impacts of climate change (CC) and financial development (FD) on rice production (RP) in Thailand from the period 1969 to 2016 by using the ARDL and VECM framework. The empirical results revealed that in the long- run (LR) and short-run (SR) there is a reduction in rice production as temperature increase. The carbon dioxide (CO2) positively affects rice production in the (LR), while this connection is negative in the SR. The empirical results further confirmed that in the LR and SR domestic credit provided by the financial sector positively and significantly improved rice production, while domestic credit to private sector by banks negatively affect rice production. The important input factors including cultivated area, fertilizers use and labor force positively and significantly contributed to rice production in both LR and SR. The LR causal link of all variables with rice production is validated. The SR causal association is unidirectional among temperature, CO2 emissions, financial development, labor force and rice production. Additionally, the IRF and VDM outcomes also confirm that both climate change and socioeconomic development are crucial for rice production in Thailand. The study offers important policy implications to improve rice production with the help of improved financial system and climate controls.

Does Financial Development Moderate the Effects on Growth Volatility? The Experience of Malaysia

2020 ◽  
Vol 14 (4) ◽  
pp. 361-381
Author(s):  
Chor Foon Tang ◽  
Salah Abosedra
Keyword(s):  
Financial Development ◽  
Negative Impact ◽  
Trade Openness ◽  
Policy Implications ◽  
Annual Data ◽  
Empirical Results ◽  
Inflation Volatility ◽  
Long Run ◽  
The Impact ◽  
Growth Volatility

This article examines whether financial development can moderate the effects of growth volatility in the Malaysian economy. Using annual data from 1972 to 2018, we noted the existence of a strong link between growth volatility and financial development over the long-run. The findings also indicate that financial development alleviates the incidence of growth volatility over the long-run. Our basic estimated model shows further that trade openness has a significant positive impact on growth volatility, while inflation volatility, inward FDI and financial development have a significant negative impact on growth volatility in Malaysia. This model is extended to count the moderating effects of financial development on the impact of inflation volatility, trade openness and FDI on growth volatility in Malaysia. The results show that financial development not only has a direct impact on growth volatility but it also moderates the impacts of inflation volatility, trade openness and FDI on growth volatility. Therefore, our results extend established findings on the finance-growth volatility nexus for the Malaysian economy. More importantly, it shows additional possible benefits from financial development for growth stability. Furthermore, we note that ignoring such benefits may have contributed to the conflicting empirical results reported in the finance-growth volatility literature. We offer some specific policy implications based on such empirical results that are beneficial to the Malaysian economy and other countries in the region. JEL Classification: C32, E32, O16

scholarly journals Climate Change Impact On Rice Production in Pakistan: An ARDL-Bounds Testing Approach to Cointegration

2018 ◽  
Author(s):  
Abbas Ali Chandio ◽  
Yuansheng Jiang ◽  
Habibullah Magsi
Keyword(s):  
Climate Change ◽  
Time Series Data ◽  
Rice Production ◽  
Series Data ◽  
Bounds Testing ◽  
Long Run ◽  
Short Run ◽  
Bounds Testing Approach ◽  
The Impact ◽  
Ardl Bounds Testing Approach

This research paper aims to examine the relationship between CO2, temperature, area, fertilizers and rice production in Pakistan. This study used Augmented Dickey Fuller (ADF) and Phillips Perron (PP) unit root tests to check the order of integration of each variable. The cointegration analysis with ARDL bounds testing approach is used to examine the impact of climate change on rice production in Pakistan over time series data from the period 1968 to 2014. The parameter stability test of the model is also checked at the end. The results of estimation show that the important variables of the study are cointegrated demonstrating the presence of long-run association among them. Furthermore, climate change factors, e.g. CO2 and temperature have a long-run and short-run positive effect on the production of rice in Pakistan. This present work is original and it is first time empirically tested the impact of climate change on rice production in Pakistan. The annual time series data of 47 years enhances the validity of the empirical findings. The most fruitful finding of this research is that rice production in Pakistan is positively influenced by emission of carbon dioxide (CO2) at 5 percent significance level in both long-run and short-run.

scholarly journals Financial development and economic growth: literature survey and empirical evidence from sub-Saharan African countries

2011 ◽  
Vol 12 (1) ◽  
pp. 11-27 ◽  
Author(s):  
Songul Kakilli Acaravci ◽  
Ilhan Ozturk ◽  
Ali Acaravci
Keyword(s):  
Economic Growth ◽  
Financial Development ◽  
Banking Sector ◽  
Sub Saharan Africa ◽  
African Countries ◽  
Real Gdp ◽  
Long Run ◽  
Domestic Credit ◽  
Real Gdp Per Capita ◽  
Sub Saharan

In this paper we review the literature on the finance-growth nexus and investigate the causality between financial development and economic growth in Sub-Saharan Africa for the period 1975-2005. Using panel co-integration and panel GMM estimation for causality, the results of the panel co-integration analysis provide evidence of no long-run relationship between financial development and economic growth. The empirical findings in the paper show a bi-directional causal relationship between the growth of real GDP per capita and the domestic credit provided by the banking sector for the panels of 24 Sub-Saharan African countries. The findings imply that African countries can accelerate their economic growth by improving their financial systems and vice versa.

Trade Openness, Financial Development Index and Economic Growth

2014 ◽  
Vol 6 (4) ◽  
pp. 362-375 ◽  
Author(s):  
Dogga Satyanarayana Murthy ◽  
Suresh Kumar Patra ◽  
Amaresh Samantaraya
Keyword(s):  
Economic Growth ◽  
Financial Development ◽  
Trade Openness ◽  
Output Growth ◽  
Domestic Demand ◽  
Policy Implications ◽  
Content Type ◽  
Development Index ◽  
Long Run ◽  
Financial Development Index

Purpose – The purpose of this article is to examine the inter-relationship and direction of causality among three macroeconomic variables such as trade liberalization, financial development and economic growth. Design/methodology/approach – The empirical analysis is based on the principal component analysis as method to construct financial development index (FDI), augmented Dickey–Fuller and Phillips–Perron tests as the unit root test, Johansen’s co-integration test and VECM for direction of causality in the long run among TOP, FDI and economic growth. Findings – The empirical results confirmed that there exists a long-run association among trade openness, financial development and economic growth. This study has also found that there is bidirectional causality between financial development and growth. However, the causality runs from growth to finance is stronger than that from finance to growth. This study also observed unidirectional causality that runs from financial development and economic growth to trade openness. Research limitations/implications – The policy implications that could be drawn from the present study is that, initiation of financial reforms to improve the size of financial system would lead to higher economic growth. Another key implication from this study is that because trade openness has no effect on both domestic financial sector development and output growth, it would be better to deploy the resources into creating a sustained domestic demand rather than concentrating more on the external front in general and trade openness in particular. Originality/value – The study constructs a summary IFD for India by taking into account four broad financial development indicators for the period 1971-2012. The present paper also suggests that it would be better to deploy the resources to create a sustained domestic demand rather than concentrating more on the external front in general and trade openness in particular.

Investigation for Finance–Growth Nexus: A Dynamic Common Correlated Estimator Approach

2021 ◽  
pp. 097215092110162
Author(s):  
Saqib Mehmood ◽  
Ahmad Raza Bilal
Keyword(s):  
Developing Countries ◽  
Private Sector ◽  
Least Squares ◽  
Financial Development ◽  
Well Being ◽  
Ordinary Least Squares ◽  
Consumption Expenditures ◽  
Long Run ◽  
Domestic Credit ◽  
The Impact

The study investigated the impact of financial development in bringing the economic well-being, using the data of 10 selected developing countries, as a sample for the period from 1991 to 2017. However, the study utilizes the regression of group mean dynamic common correlated estimator (DCCE) by Chudik and Pesaran (2015) to analyse the said circumstance. For estimation, the present study is considering the major tycoons of financial development and their relevant areas that are significantly effecting the economic growth. However, the broad money (GAM1), domestic credit to private sector to GDP (GAM2), domestic credit to private sector by banks (GAM3), government’s final consumption expenditures (GAFCE) and foreign direct investment GAFC are major contributors in attaining the GDP per capita (GADA). However, the estimation of the concerned circumstance was also evaluated in terms of shorter and longer run estimations. The results of the short– and long–run estimations also authenticate the results of DCCE estimations. The robustness of the results is verified with the help of Pedroni (2004) test, fully modified ordinary least squares (FMOLS) test by Pedroni (2001) and dynamic ordinary least squares (DOLS) by Stock and Watson (1993) . The robustness tests also verify the factors that are considered as the major players of financial development for uplifting the concerned economies. Selected developing countries have the potential for utilizing their financial development options to manage their growth at the economic level. For practical implications and for policymaking, the ingredients of this particular study can be endorsed to get the desired results.

scholarly journals Credibility of climate change denial in social media

2019 ◽  
Vol 5 (1) ◽  
Author(s):  
Abhishek Samantray ◽  
Paolo Pin
Keyword(s):  
Climate Change ◽  
Social Networks ◽  
Social Media ◽  
Empirical Analysis ◽  
Public Perception ◽  
Empirical Results ◽  
Climate Change Denial ◽  
Increase With Increase ◽  
Long Run ◽  
Over Time

Abstract Public perception about the reality of climate change has remained polarized and propagation of fake information on social media can be a potential cause. Homophily in communication, the tendency of people to communicate with others having similar beliefs, is understood to lead to the formation of echo chambers which reinforce individual beliefs and fuel further increase in polarization. Quite surprisingly, in an empirical analysis of the effect of homophily in communication on the level of polarization using evidence from Twitter conversations on the climate change topic during 2007–2017, we find that evolution of homophily over time negatively affects the evolution of polarization in the long run. Among various information about climate change to which people are exposed to, they are more likely to be influenced by information that have higher credibility. Therefore, we study a model of polarization of beliefs in social networks that accounts for credibility of propagating information in addition to homophily in communication. We find that polarization can not increase with increase in homophily in communication unless information propagating fake beliefs has minimal credibility. We therefore infer from the empirical results that anti-climate change tweets are largely not credible.

scholarly journals Financial and Economic Factors Affecting Foreign Direct Investment - A Panel Estimation Study of the ASEAN-5 Countries

2021 ◽  
Vol 16 (3) ◽  
pp. 103-131
Author(s):  
Geetha Subramaniam ◽  
◽  
Ratneswary Rasiah ◽  
Doris Padmini Selvaratnam ◽  
Jayalakshmy Ramachandran ◽  
...  
Keyword(s):  
Foreign Direct Investment ◽  
Stock Market ◽  
Financial Development ◽  
Direct Investment ◽  
Trade Openness ◽  
Policy Implications ◽  
Market Size ◽  
Panel Estimation ◽  
Pooled Mean Group ◽  
Long Run

ASEAN's strength stems from its diversity, which generates a plethora of diverse market opportunities. Over the last few decades, Foreign Direct Investment (FDI) has risen significantly as a major source of international capital transfer, but the COVID-19 pandemic had a detrimental effect on FDI flows, with the outlook for ASEAN remaining highly unpredictable and contingent on the length of the crisis, the efficacy of policy efforts to encourage investment and to mitigate the economic consequences of the pandemic. This study examines the long-run relationships and short-run dynamic interactions between FDI and its determinants comprising of market size, trade openness, stock market capitalisation and financial development over the period 1970 to 2019. The study applies the dynamic heterogeneous panel estimation techniques of Mean Group (MG), Pooled Mean Group (PMG) and Dynamic Fixed Effects (DFE) to analyse a set of macro panel data of the ASEAN-5 countries, to establish the possible relationships between these variables. An analysis of the results reveals the existence of a long-run causality between FDI and its predictors, indicated by the significant error correction terms for the models tested in this study. There is evidence that market size and stock market capitalization significantly contribute to FDI, with market size being the most dominant contributor. Interestingly, the study also reveals that trade openness and financial development are not significant in determining FDI in the selected countries. The study concludes with an examination of policy implications and also sheds some light on the outlook of FDI in ASEAN-5 post Covid 19. Keywords: foreign direct investment, financial development, pooled mean group, ASEAN-5

scholarly journals The Dynamic Effects of Growth, Financial Development and Trade Openness on Tax Revenue in Malaysia

2020 ◽  
Vol 21 (1) ◽  
pp. 42-62
Author(s):  
Nanthakumar Loganathan ◽  
Norsiah Ahmad ◽  
Thirunaukarasu Subramaniam
Keyword(s):  
Economic Growth ◽  
Financial Development ◽  
Trade Openness ◽  
Tax Revenue ◽  
Tax Collection ◽  
Empirical Results ◽  
Long Run ◽  
Rolling Window ◽  
Short Run ◽  
Sustainable Economic Growth

This study explores the effects of domestic financial development, growth and trade openness on tax collection for Malaysia using the ARDL and bootstrap rolling window estimates covering the period 1970-2017. The empirical results suggest that, the presence oflong-run relationship between tax revenue and per capita GDP and short-run relationship between tax collection, economic growth, financial development and trade openness. We foundthatthere is a short-run unidirectional causality running between tax collection, economic growth and financial development. This result suggests that, in the long-run, economic performance and financial development have an adverse effect on tax collection, while trade openness has no significant causality impact on tax collection in Malaysia. Based on the empirical results of the study, the country should pay more attention to enhance the effectiveness of future public expenditure programs and put more emphasisson dynamic fiscal policy targeting on tax reform and securing new sourcesof tax revenues to ensure continuous flow of long-term tax revenue coupled with sustainable economic growth, trade and financial performances in up-coming years.

scholarly journals The nexus between financial development and poverty reduction in Egypt

2018 ◽  
Vol 3 (2) ◽  
pp. 40-55
Author(s):  
Vivian Bushra Kheir
Keyword(s):  
Private Sector ◽  
Financial Development ◽  
Poverty Reduction ◽  
Incentive Structure ◽  
Content Type ◽  
Distributed Lag ◽  
Long Run ◽  
Domestic Credit ◽  
Per Capita ◽  
The Impact

Purpose The purpose of this study is to empirically examine the impact of financial development on poverty reduction in Egypt. The paper also investigates whether financial development affects poverty via gross domestic product (GDP) growth. Design/methodology/approach This study uses the autoregressive distributed lag approach to estimate two specifications. The first is dependent on poverty by the ratio domestic credit to the private sector (percentage of GDP) and the second is dependent on the poverty by the ratio liquid liabilities to GDP or M3/GDP. The data are annual and cover the period from 1980 to 2015. Findings In long run, the study finds that relationship between economic growth and poverty is bidirectional. Financial development and poverty (household final consumption expenditure per capita) are complementary as bidirectional (in Granger sense). In short run, the study finds the bidirectional causality between financial development (real domestic credit to private sector per capita) and poverty reduction. Practical implications The findings suggest that governments should remove policies that impede the ability of banks to offer loan products or undermine the commercial incentive structure for banks or borrowers. It is crucial to enhance the role of specialized state-owned banks in financial intermediation. Social implications Several attempts have been made to investigate the relationship between financial development and other macroeconomic variables, but few studies have examined the impact of financial development on poverty reduction. Furthermore, the majority of the previous studies are based on Asia and Latin America – affording Egypt very little or no coverage at all.

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