scholarly journals Trade, Energy Consumption, Economic Growth and Ecological Quality: An Empirical Evidence from D-8 and G-7 Countries

2021 ◽  
Author(s):  
Muhammad Tariq Majeed ◽  
Naveed Asghar
Keyword(s):  
Least Squares ◽  
Carbon Dioxide Emissions ◽  
Ordinary Least Squares ◽  
Sustainable Growth ◽  
Kuznets Curve ◽  
Ecological Quality ◽  
Causality Test ◽  
Sustainable Environment ◽  
Cointegration Tests ◽  
Augmented Dickey Fuller

Abstract While pursuing sustainable growth there is a need to inculcate the procedure of a sustainable environment for coming generations. This study investigates the association between carbon dioxide emissions (CO2) and gross domestic product (GDP), disaggregate and aggregate energy usage, trade, using yearly data for the time component of 1980–2019 for D-8 and G-7 countries. The study employs second-generation unit root tests namely cross sectionally augmented Dickey Fuller (CADF) and cross sectionally augmented IPS (CIPS). Further, Kao, Pedroni, and Westerlund cointegration tests are employed to test for cointegration. To estimate models, fully modified least squares (FMOLS), dynamic ordinary least squares (DOLS) and heterogeneous panel estimators (MG, AMG, CCEMG, DCCEMG) are used. Finally, to verify the causality among the study variables the Dumitrescu and Hurlin, (2012) causality test is used. The findings of the study reveal that income, aggregate, and disaggregate energy consumptions (oil, coal, gas), and trade exacerbate ecological quality in D-8 countries while income and trade improve it in G-7 economies. However, oil, coal, and gas usage are detrimental for ecological quality in G-7 economies. The study validates an inverted U-shaped environmental Kuznets curve in D-8 while U-shaped in G-7 countries. It is recommended that both groups of countries need to adopt green strategies and sustainable patterns for growth and development.

Investigating the validity of the agricultural-induced environmental Kuznets curve (EKC) hypothesis for Ghana: evidence from an autoregressive distributed lag (ARDL) approach with a structural break

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Gideon Ntim-Amo ◽  
Yin Qi ◽  
Ernest Ankrah-Kwarko ◽  
Martinson Ankrah Twumasi ◽  
Stephen Ansah ◽  
...  
Keyword(s):  
Energy Consumption ◽  
Least Squares ◽  
Structural Break ◽  
Value Added ◽  
Ordinary Least Squares ◽  
Kuznets Curve ◽  
Ekc Hypothesis ◽  
Causality Test ◽  
Content Type ◽  
Ardl Approach

PurposeThe purpose of this research is to examine the validity of the agriculture-induced environmental Kuznets curve (EKC) hypothesis with evidence from an autoregressive distributed lag (ARDL) approach with a structural break including real income and energy consumption in the model for Ghana over the period 1980–2014.Design/methodology/approachThe ARDL approach with a structural break was used to analyze the agriculture-induced EKC model which has not been studied in Ghana. The dynamic ordinary least squares (DOLS), canonical cointegration regression (CCR) and fully modified ordinary least squares (FMOLS) econometric methods were further used to validate the robustness of the estimates, and the direction of the relationship between the study variables was also clarified using the Toda–Yamamoto Granger causality test.FindingsThe ARDL results revealed that GDP, energy consumption and agricultural value added have significant positive effects on CO2 emissions, while GDP2 reduces CO2 emissions. The Toda-Yamamoto causality test results show a bidirectional causality running from GDP and energy consumption to CO2 emissions whereas a unidirectional long-term causality runs from GDP2 and agriculture value-added to CO2 emissions.Practical implicationsThis finding validated the presence of the agriculture-induced EKC hypothesis in Ghana in both the short run and long run, and the important role of agriculture and energy consumption in economic growth was confirmed by the respective bidirectional and unidirectional causal relationships between the two variables and GDP. Thus, a reduction in unsustainable agricultural practices is recommended through specific policies to strengthen institutional quality in Ghana for a paradigm shift from rudimentary technology to modern sustainable agrarian technologies.Originality/valueThis study is novel in the EKC literature in Ghana, as no study has yet been done on agriculture-induced EKC in Ghana, and the other EKC studies also failed to account for structural breaks which have been done by this study. This study further includes a causality analysis to examine the direction of the relationship which the few EKC studies in Ghana failed to address. Finally, dynamic ordinary least squares (DOLS), canonical cointegration regression (CCR) and fully modified ordinary least squares (FMOLS) methods are used for robustness check, unlike other studies with single methodologies.

scholarly journals Has the COVID-19 Pandemic Affected Maritime Connectivity? An Estimation for China and the Polar Silk Road Countries

2021 ◽  
Vol 13 (6) ◽  
pp. 3521
Author(s):  
Gao Tianming ◽  
Vasilii Erokhin ◽  
Aleksandr Arskiy ◽  
Mikail Khudzhatov
Keyword(s):  
Least Squares ◽  
Ordinary Least Squares ◽  
Silk Road ◽  
Economic Activities ◽  
Causality Test ◽  
Distributed Lag ◽  
Augmented Dickey Fuller ◽  
Containment Measures ◽  
Growth Prospects ◽  
Market Factors

In light of about 80% of international freight traffic carried by sea, maritime supply chains’ stability is pivotal to global connectivity. For over a year now, the transboundary mobility of vessels and cargoes has been restricted by diverse forms of the COVID-19 containment measures applied by national governments, while the lockdowns of people, businesses, and economic activities have significantly affected the growth prospects of various maritime connectivity initiatives. This study investigates how the pandemic-related public health, trade, and market factors have shifted the connectivity patterns in the Polar Silk Road (PSR) transport corridor between China, South Korea, Japan, Russia, and four economies of Northern Europe. The causality links between the Shipping Connectivity Index (SCI) and the number of COVID-19 cases and deaths, trade volumes with China and the rest of the world, and price indexes of minerals, fuels, food, and agricultural products are revealed separately for eight countries and thirty-five ports. The study algorithm is built on the consecutive application of the Augmented Dickey-Fuller (ADF) and the Phillips-Perron (PP) stationarity tests, the Autoregressive Distributed Lag (ARDL) method, the Fully-Modified Ordinary Least Squares (FMOLS) and the Dynamic Ordinary Least Squares (DOLS) robustness checks, and the Toda-Yamamoto causality test. Tight trade-connectivity links are recorded in all locations along the China-PSR transport corridor in 2015–2019, but in 2020, the relationships weakened. Bidirectional influences between the number of COVID-19 cases and connectivity parameters demonstrate the maritime sector’s sensitivity to safety regulations and bring into focus the role of cargo shipping in the transboundary spread of the virus. The authors’ four-stage approach contributes to the establishment of a methodology framework that may equip stakeholders with insights about potential risks to maritime connectivity in the China-PSR maritime trade in the course of the pandemic.

scholarly journals Analysis of the New Kuznets Relationship: Considering Emissions of Carbon, Methanol, and Nitrous Oxide Greenhouse Gases—Evidence from EU Countries

2021 ◽  
Vol 18 (6) ◽  
pp. 2907
Author(s):  
Mara Madaleno ◽  
Victor Moutinho
Keyword(s):  
Nitrous Oxide ◽  
Least Squares ◽  
Fixed Effects ◽  
Ghg Emissions ◽  
Ordinary Least Squares ◽  
Kuznets Curve ◽  
Ekc Hypothesis ◽  
Long Run ◽  
Short Run ◽  
The Eu

Decreased greenhouse gas emissions (GHG) are urgently needed in view of global health threat represented by climate change. The goal of this paper is to test the validity of the Environmental Kuznets Curve (EKC) hypothesis, considering less common measures of environmental burden. For that, four different estimations are done, one considering total GHG emissions, and three more taking into account, individually, the three main GHG gases—carbon dioxide (CO2), nitrous oxide (N2O), and methane gas (CH4)—considering the oldest and most recent economies adhering to the EU27 (the EU 15 (Old Europe) and the EU 12 (New Europe)) separately. Using panel dynamic fixed effects (DFE), dynamic ordinary least squares (DOLS), and fully modified ordinary least squares (FMOLS) techniques, we validate the existence of a U-shaped relationship for all emission proxies considered, and groups of countries in the short-run. Some evidence of this effect also exists in the long-run. However, we were only able to validate the EKC hypothesis for the short-run in EU 12 under DOLS and the short and long-run using FMOLS. Confirmed is the fact that results are sensitive to models and measures adopted. Externalization of problems globally takes a longer period for national policies to correct, turning global measures harder and local environmental proxies more suitable to deeply explore the EKC hypothesis.

scholarly journals THE EFFECT OF SAVING AND CAPITAL EXPANSION ON FINANCIAL AND TECHNOLOGICAL DEVELOPMENT IN GCC COUNTRIES

2021 ◽  
Vol 0 (0) ◽  
pp. 1-25
Author(s):  
Faris Alshubiri
Keyword(s):  
Least Squares ◽  
Financial Development ◽  
Technological Development ◽  
National Income ◽  
Ordinary Least Squares ◽  
Growth Strategy ◽  
Causality Test ◽  
Gcc Countries ◽  
Causal Direction ◽  
Long Run

This study examined the effect of the relationship between saving and capital expansion on financial and technological development in three GCC countries using panel data from 1990 to 2019. The study used panel least squares, feasible general least squares, dynamic ordinary least squares and fully modified ordinary least squares used in the study. The findings showed that there was a significant positive long-run relationship between capital expansion and financial development and was a positive and insignificant long-run relationship between saving and financial development. Conversely, the study showed that there was a significant positive long-run relationship between saving and technological development. Meanwhile, there was a negative long-run relationship between capital expansion and technological development. Pairwise Granger causality test results showed that there was bidirectional causality between saving and financial development, a single causal direction from Adjusted net national income and financial development and a single causal direction from technological development and saving and Inflation, consumer prices. The main conclusions of the study were saving tends to support technological development, while investment tends to improve financial development. Therefore, GCC countries should formulate a long-term growth strategy in all sectors to determine their development requirements in light of the available resources.

The impact of gender inequality in education and employment on economic performance in Turkey: evidence from a cointegration approach

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ömer Esen ◽  
Gamze Yıldız Seren
Keyword(s):  
Least Squares ◽  
Economic Performance ◽  
Ordinary Least Squares ◽  
Estimation Methods ◽  
Content Type ◽  
Cointegration Tests ◽  
Johansen Cointegration ◽  
Education And Employment ◽  
The Impact

PurposeThis study aims to empirically examine the impact of gender-based inequalities in both education and employment on economic performance using the dataset of Turkey for the period 1975–2018.Design/methodology/approachThis study employs Johansen cointegration tests to analyze the existence of a long-term relation among variables. Furthermore, dynamic ordinary least squares (DOLS) and fully modified ordinary least squares (FMOLS) estimation methods are performed to determine the long-run coefficients.FindingsThe findings from the Johansen cointegration analysis confirm that there is a long-term cointegration relation between variables. Moreover, DOLS and FMOLS results reveal that improvements in gender equality in both education and employment have a strong and significant impact on real gross domestic product (GDP) per capita in the long term.Originality/valueThe authors expect that this study will make remarkable contributions to the future academic studies and policy implementation, as it examines the relation among the variables by including the school life expectancy from primary to tertiary based on the gender parity index (GPI), the gross enrollment ratio from primary to tertiary based on GPI and the ratio of female to male labor force participation (FMLFP) rate.

The relationship between foreign aid and corruption: a case of selected Asian countries

2019 ◽  
Vol 26 (3) ◽  
pp. 692-704
Author(s):  
Muhammad Ali ◽  
Lubna Khan ◽  
Amna Sohail ◽  
Chin Hong Puah
Keyword(s):  
Least Squares ◽  
Foreign Aid ◽  
Negative Impact ◽  
Panel Cointegration ◽  
Ordinary Least Squares ◽  
Foreign Assistance ◽  
Asian Countries ◽  
Causality Test ◽  
Content Type ◽  
Long Run

Purpose The purpose of this study is to examine the effect of foreign aid (FA) on corruption in selected Asian countries (Pakistan, India, Srilanka and Bangladesh) using the panel data from 2000 to 2014. Design/methodology/approach The author used Levin-Lin-Chu and Im-Pesaran-Shin panel unit root tests to check the stationary properties of the variables. The Pedroni’s and Kao panel cointegration approach was applied to analyze the variable’s long-run relationship. The author used panel dynamic ordinary least squares (PDOLS) and fully modified ordinary least squares (FMOLS) framework to estimate the coefficients of cointegrating vectors. Additionally, the panel granger causality test was performed to check the causal relationship between the variables. Findings The results from PDOLS and FMOLS indicate that FA has a significant negative impact on the level of corruption. This infers that the foreign assistance decrease the level of corruption perception index, hence, more corruption in the country. Originality/value Overall, the study fulfills the need to understand the aid-corruption nexus, particularly in the case of the Asian region.

Financial development, FDI and economic growth: evidence from Sudan

2018 ◽  
Vol 45 (8) ◽  
pp. 1236-1249 ◽  
Author(s):  
Abdalla Sirag ◽  
Samira SidAhmed ◽  
Hamisu Sadi Ali
Keyword(s):  
Economic Growth ◽  
Least Squares ◽  
Financial Development ◽  
Unit Root ◽  
Structural Break ◽  
Ordinary Least Squares ◽  
Series Data ◽  
Content Type ◽  
Long Run ◽  
Cointegration Tests

Purpose The effect of foreign direct investment (FDI) on economic growth is widely believed to be contingent on the development of the financial sector. Nevertheless, as the possibility that the effect of financial development on growth being contingent on FDI has been neglected in existing literature, the authors have investigated it in this paper. In general, the purpose of this paper is to examine the effect of financial development and FDI on economic growth in Sudan using annual data from 1970 to 2014. Design/methodology/approach Since most of the macroeconomic variables are subject to unit root problem, the time series data are assessed using unit root and cointegration tests with/without structural break. Moreover, the study uses the fully modified ordinary least squares and the dynamic ordinary least squares techniques to estimate the long-run model. Findings The results of the cointegration tests provide evidence that a long-run relationship exists among variables even after accounting for the structural break. The results show that financial development and FDI are positive and significant in explaining economic growth in Sudan. Financial development is found to be more beneficial to economic growth than FDI. Moreover, the findings reveal that FDI leads to better economic performance through financial development. Interestingly, the findings of the study show that the effect of financial development on economic growth is further enhanced by the inflows of FDI. Research limitations/implications The government should focus on promoting FDI in more productive sectors. In addition, further cooperation with multinational enterprises is needed to increase FDI in the country. Originality/value This is the first paper that empirically examines both the interlinked impact of FDI on growth through financial development and the impact of financial development on economic growth through FDI in Sudan using appropriate econometric methods.

scholarly journals The Relationship between Economic Growth, Energy Consumption and CO2 Emission in the Middle East and North Africa (MENA)

2021 ◽  
Vol 21 (2) ◽  
pp. 132-147
Author(s):  
Mohammed Touitou
Keyword(s):  
Economic Growth ◽  
Carbon Dioxide ◽  
Energy Consumption ◽  
Carbon Dioxide Emissions ◽  
Past Century ◽  
Kuznets Curve ◽  
Mena Region ◽  
Mena Countries ◽  
Cointegration Tests ◽  
The Relationship

Abstract Research background: CO2 emissions are considered to be the main reason for global warming, and for this reason, their regulation is a very important issue for governments. Due to the increasing use of energy, carbon dioxide emissions have increased dramatically over the past century, with a direct link to economic growth and development. The relationship between CO2 emissions, growth and energy consumption is therefore at the heart of current economic issues. Purpose: This study aimed at examining the relationship among economic growth, carbon dioxide (CO2) emissions and energy consumption in selected MENA countries, in the period 1995–2017. Research methodology: To prove these relations, a stationary data panel methodology is used supported by unitary root and cointegration tests. Results: The results indicated that there is a long-term relationship between CO2 emissions, energy consumption and GDP. In addition, it is found that the elasticity of CO2 emissions with respect to energy consumption is less than one (inelastic), and the elasticity of CO2 emissions with respect to GDP suggests the existence of an Environmental Kuznets Curve. An important finding is that energy consumption has a positive but relatively low effect on CO2 emissions. To reduce CO2 emissions, the countries of the MENA region are being called upon to increase significantly the use of renewable energies and the establishment of a more efficient energy policy.

scholarly journals How Does CSR Activity Affect Sustainable Growth and Value of Corporations? Evidence from Korea

2019 ◽  
Vol 11 (2) ◽  
pp. 508 ◽  
Author(s):  
Kyungtag Lee ◽  
Hyunchul Lee
Keyword(s):  
Social Responsibility ◽  
Least Squares ◽  
Optimal Investment ◽  
Listed Companies ◽  
Ordinary Least Squares ◽  
Sustainable Growth ◽  
Quantile Regressions ◽  
Valuable Data ◽  
Middle Range ◽  
The Relationship

This study explores the relationship between Korean listed companies’ corporation social responsibility (CSR) activities and their sustainable growth and valuation, focusing specifically on the nonlinear aspect. The nonlinear quantile regressions used in this study reported that CSR activities increased corporation value exclusively in the middle-range groups (i.e., τ_25, τ_50, τ_75) of Tobin’s q, a proxy for corporation growth and value. However, the linear ordinary least squares (OLS) regression did not indicate similar results. Our findings also showed that CSR activities affect the valuation of Korean listed corporations in a nonlinear, rather than in a linear way. Considering that most prior studies are devoted to reporting linear results from classical ordinary least squares estimations between CSR activities and corporation value, our study fills the gap in the literature. The findings of this study may provide corporation managers and researchers with valuable data concerning a corporation’s optimal investment point for their CSR activities for sustainable growth and the maximization of corporation value.

scholarly journals The Impact of Foreign Direct Investment on Environment Degradation: Evidence from Emerging Markets in Asia

2019 ◽  
Vol 16 (9) ◽  
pp. 1636 ◽  
Author(s):  
Anh Hoang To ◽  
Dao Thi-Thieu Ha ◽  
Ha Minh Nguyen ◽  
Duc Hong Vo
Keyword(s):  
Foreign Direct Investment ◽  
Emerging Markets ◽  
Least Squares ◽  
Direct Investment ◽  
Panel Cointegration ◽  
Ordinary Least Squares ◽  
Kuznets Curve ◽  
Strong Impact ◽  
The Impact ◽  
Environment Degradation

This study is conducted to examine the concerns of the foreign direct investment (FDI) causing environment degradation and also to test the validity of the traditional Environmental Kuznets Curve (EKC) in the context of emerging markets in the Asian region. Data of these countries from 1980–2016 are utilised. This study employs panel cointegration Fully Modified Ordinary Least Squares (FMOLS), which treats the endogeneity problem, and its estimators are adjusted for serial correlation. Moreover, this study also uses panel Dynamic Ordinary Least Squares (DOLS), which includes contemporaneous value, leads and, lags of the first difference of the regressors to correct endogeneity problems and serial correlations. Findings from this study indicate that the pollution heaven hypothesis and the EKC curve are generally valid in the region. In addition, FDI has a strong impact on the environment.

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