scholarly journals The Impacts of Financial Development on Green and Non-Green Energy Consumption: Empirical Evidence From OPEC Countries

2020 ◽  
Author(s):  
Faris Alshubiri ◽  
Mohamed Elheddad ◽  
Syed Jamil ◽  
Nassima Djellouli
Keyword(s):  
Energy Consumption ◽  
Financial Development ◽  
Environmental Quality ◽  
Green Energy ◽  
Gdp Per Capita ◽  
Green Growth ◽  
The World ◽  
Domestic Credit ◽  
Per Capita ◽  
The Impact

Abstract This paper aims to examine the impact of financial development on green and non-green energy consumption in the Organization of the Petroleum Exporting Countries (OPEC) over the period of 1990–2015.The data was collected from the Green Growth Knowledge Platform Database and the World Development Indicators (WDI) of the World Bank for 14 OPEC countries over the period of 1990–2015.We used two different proxies for financial development: (1) domestic financial development, measured by domestic credit in the private sector as a percentage of gross domestic product(GDP), and (2)foreign financial development, measured by the foreign direct investment (FDI) stock as a share of GDP. The main model developed three hypotheses; the first two were sub-hypotheses that characterized green energy through proxies: access to improved sanitation and access to electricity. The third hypothesis was anon-green (brown) energy proxy using CO2 emissions per capita. All three hypotheses used five control variables: by GDP per capita, urbanisation/total population ratio, oil rent/GDP ratio, investment/GDP per capita ratio and trade openness. In order to evaluate these hypotheses, we used the instrumental-variable (IV) approach with a fixed effect option to control for both endogeneity and heterogeneity, and we used the lags of the independent variables as instruments for financial development, as lagged variables are arguably exogenous. The impacts of financial development on environmental quality varied between foreign direct investments (foreign financial development) and the domestic credit ratio (domestic financial development). Our main results suggest that FDI degrades environmental quality in OPEC economies, and FDI represents a source of pollution by increasing CO2 emissions per capita (non-renewable) by about 0.0224% and decreasing non-renewable energy consumption variables. In other words, FDI’s non-renewable and renewable relationship supports the non-green growth hypothesis.JEL Classification B22. B26. D53. E21. F63. K32

scholarly journals INSTITUTIONAL FACTORS OF ECONOMIC PERFORMANCE: EVIDENCE FROM THE WORLD VALUE SURVEY

2021 ◽  
Vol 7 (2) ◽  
pp. 146-160
Author(s):  
Andriy Maksymuk ◽  
Nataliya Kuzenko
Keyword(s):  
Regression Analysis ◽  
Oecd Countries ◽  
High Income ◽  
Institutional Factors ◽  
Gdp Per Capita ◽  
Strong Positive Correlation ◽  
Middle Income ◽  
The World ◽  
Per Capita ◽  
The Impact

This article highlights the impact of values on the country’s welfare. Values that are quite constant over a long period of time form an institutional framework within the country. They can contribute to economic development or even prevent it. The aim of the article is to explore, what is the influence of social values, democracy and trade on welfare levels in different counties. The hypothesis is that the dominance in society of secular-rational values and the values of self-expression, democracy and trade (openness to the world) have a positive effect on the level of welfare of countries. The empirical part of the paper is based on the comparative analysis of relationship between GDP per capita and four values such as tolerance and respect, obedience, trust and freedom of choice for two waves of WVS – 2005-2009 and 2010-2014. Using correlation and regression analysis, the relationships between these indicators were evaluated. These values have a positive impact on welfare in OECD countries, some countries of Latin America, Asia and Africa with middle income per capita. However, there is a negative relationship between obedience and GDP per capita. This value is more important for some African and Asian countries and India. The relationship between GDP per capita and the aggregate value index showed a strong positive correlation for OECD countries. Then the regression model was estimated to assess the impact of values, trade and level of democracy on welfare growth and development. The results of the regression analysis showed a significant effect of the aggregated value indicator for all six samples, but this effect is weaker for high-income countries. The effect of the level of democracy is significant and positive only for the sub-sample of democratic countries, while it is negative for high-income countries. The effect of the level of trade on GDP per capita is statistically significant for the sample of all countries, the sub-sample of non-democratic countries and the sub-sample of high income and upper-middle income countries. Thus, we conclude that the institutional factors (the values and the level of democracy) are important determinants of GDP per capita for democratic countries while for non-democratic countries trade is more important.

scholarly journals FINANCIAL DEVELOPMENT AND ECONOMIC GROWTH IN MALAYSIA FROM 1990 TO 2019: VECM APPROACH

2021 ◽  
Vol 3 (8) ◽  
pp. 37-54
Author(s):  
Norhidayati Mohamed Zakaria ◽  
Mohamad Yazis Ali Basah
Keyword(s):  
Economic Growth ◽  
Financial Development ◽  
Time Series Data ◽  
Global Financial Crisis ◽  
Gdp Per Capita ◽  
Series Data ◽  
Integration Test ◽  
Domestic Credit ◽  
Per Capita ◽  
The Relationship

Economists believe that efficient financial development is significant for building sustainable economic growth in any country. The global financial crisis, economic events and country’s uniqueness has resulted in continuous research to examine the relationship of financial and economic development using numerous methods and indicators which presented various simulation that led to different views on the linkages. Most of the studies had tested the indicators individually which resulted in less dynamic findings and creates a gap in the research. Hence, this paper aims to examine the relationship between financial development and economic growth in Malaysia by observing different economic indicators concurrently. This study using Malaysia’s annual time series data from 1990 to 2019. This study employs descriptive statistics, regression estimations, unit root test, Johansen co-integration test, VAR, and VECM modeling. The FTSE Kuala Lumpur Composite Index (FBMKLCI) and domestic credit as a percentage to GDP (DC) have been used as proxies for financial development while GDP per capita and Industrial Production Index (IPI) as proxies for economic growth. The findings reveal that FBMKLCI and domestic credit produces a significant relationship towards GDP per capita in the long run and short run. Contrary results found in FBMKLCI-domestic credit-IPI nexus whereby FBMKLCI and domestic credit demonstrate negative association towards IPI. As this study uses the same variables to indicates the relationship towards unalike economic growth gauge, more dynamic work and effort shall be considered to enhance the results. Government and respective institutions shall play their role effectively to revisit or formulate policy and law of the financial system to stimulate the growth of the Malaysian economy.

scholarly journals The Impact of CO2 Emissions on the GDP per Capita, Employment Rate and Energy Consumption of China, Korea and Japan

2021 ◽  
Vol 6 (11) ◽  
pp. 315-333
Author(s):  
Allieah A. Mendoza ◽  
Kirby Duane Garret T. Reyes ◽  
Pauline Antonette D. Soriano ◽  
Ronaldo Cabauatan
Keyword(s):  
Energy Consumption ◽  
Co2 Emissions ◽  
Time Series Data ◽  
Gdp Per Capita ◽  
Series Data ◽  
Kuznets Curve ◽  
Total Employment ◽  
Cointegration Tests ◽  
Per Capita ◽  
The Impact

This paper aims to investigate the relationship between CO2 Emissions and GDP per capita of three East Asian countries (China, Japan, and South Korea). The Environmental Kuznets Curve hypothesis and its possible implications to the implementation of the Kyoto Protocol Agreement will be tested. The independent variables Employment and Energy consumption will be used as control variables. Multiple regression analysis and cointegration tests will be used on time series data of Japan, Korea, and China that is obtained from the World Bank database. GDP per capita is measured in constant 2010 US$, CO2 emission in kt, Employment in the ratio of total employment to total population aged 15 and above, and Energy Consumption in annual kWh per capita.

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.

scholarly journals Testing Environmental Kuznets Curve in the USA: What Role Institutional Quality, Globalization, Energy Consumption, Financial Development, and Remittances can Play? New Evidence From Dynamic ARDL Simulations Approach

2021 ◽  
Vol 9 ◽  
Author(s):  
Muhammad Imran Khan ◽  
Muhammad Kamran Khan ◽  
Vishal Dagar ◽  
Bahareh Oryani ◽  
Syeda Saba Akbar ◽  
...  
Keyword(s):  
Economic Growth ◽  
Energy Consumption ◽  
Financial Development ◽  
Environmental Quality ◽  
Environmental Kuznets Curve ◽  
Institutional Quality ◽  
The United States ◽  
Kuznets Curve ◽  
The Usa ◽  
The Impact

This study intends to examine the validity of the Environmental Kuznets Curve (EKC) in the United States of America (USA), considering the vital role of macroeconomic variables, such as economic growth, institutional quality, globalization, energy consumption, financial development, urbanization, and remittance from 1985 to 2020. The impact of positive/negative shock in a regressor on CO2 emissions keeps other regressors unchanged and has been investigated using the novel dynamic stimulated autoregressive distributed lag (ARDL) model. The empirical findings revealed the positive impact of economic growth and negative impact of the square economic growth on environmental degradation in the short- and long term. It indicates the validity of the EKC hypothesis in the case of the USA. Moreover, financial development, energy consumption, globalization, remittances inflow, and urbanization reduce the environmental quality. On the contrary, institutional quality improves the environmental quality by reducing CO2 emissions. The appropriate recommendations to design the inclusive economic-environment national energy policy were proposed.

scholarly journals The Impact of Inflation on Financial Development

2015 ◽  
Vol 1 (4) ◽  
pp. 42-48 ◽  
Author(s):  
Haroon Khan
Keyword(s):  
Private Sector ◽  
Financial Markets ◽  
Financial Development ◽  
Negative Relationship ◽  
Bank Credit ◽  
Gdp Per Capita ◽  
Per Capita ◽  
Experimental Findings ◽  
The Impact ◽  
Do So

This paper scrutinizes the impact of inflation on financial development in the case of Pakistan for the period of 1991-2011. In order to do so, Regression and Correlation methods have been applied. Experimental findings expose that high trends of inflation delay the performance of financial markets. GDP per capita promotes the development of financial sector through its causing channels. Three indicators namely money supply, total level of deposits, BCPS (bank credit to private sector) represent the financial development in Pakistan. There is a negative relationship between inflation and financial development.

scholarly journals China's fiscal decentralization and environmental quality: theory and an empirical study

2019 ◽  
Vol 25 (2) ◽  
pp. 159-181 ◽  
Author(s):  
Yu Hao ◽  
Yu-Fu Chen ◽  
Hua Liao ◽  
Yi-Ming Wei
Keyword(s):  
Economic Growth ◽  
Environmental Quality ◽  
Fiscal Decentralization ◽  
Gdp Per Capita ◽  
Kuznets Curve ◽  
Financial Autonomy ◽  
Per Capita ◽  
Pollution Emissions ◽  
The Impact ◽  
Quality Theory

AbstractAs a wide-reaching institutional reform, China's fiscal decentralization was launched in the early 1980s to encourage provincial economic growth by granting more financial autonomy to provincial governments. In this paper, the impact of fiscal decentralization on China's environmental quality is investigated both theoretically and empirically. A neoclassical model is developed based on the primary characteristics of China's fiscal decentralization. Using provincial panel data for the period 1995-2015, a two-equation regression model is employed to empirically verify the three propositions of the theoretical model: (1) there exists an inverted-U shaped relationship between fiscal decentralization and GDP per capita; (2) fiscal decentralization is positively related to GDP per capita at the steady state; (3) there is an inverted-U shaped Environmental Kuznets Curve relationship between pollution emissions and economic growth.

The Impact of International Trade on Environmental Quality: Implications for Law

2020 ◽  
Vol 11 (1) ◽  
Author(s):  
Ngoc-Tham Pham ◽  
Trung-Kien Pham ◽  
Viet Hieu Cao ◽  
Ha Giang Tran ◽  
Xuan Vinh Vo
Keyword(s):  
International Trade ◽  
Environmental Quality ◽  
Gdp Per Capita ◽  
Kuznets Curve ◽  
Renewable Energy Consumption ◽  
Middle Income ◽  
Long Run ◽  
Merchandise Export ◽  
Per Capita ◽  
The Impact

AbstractOur study illuminates the impact of international trade on environmental quality in lower-middle-income countries by using CO2 emission as the proxy for environmental degradation. Using the Pooled Mean Group estimation along with validity tests, the results show that in the long run, CO2 emission is affected by merchandise export, merchandise import, FDI, GDP per capita, and renewable energy consumption. The impact of trade on CO2 emission is mixed because our findings show that merchandise export and import have opposite effects. In addition, our results reveal that Environmental Kuznets Curve exists in the long run with N-sharped. The increase in GDP per capita leads to the raise of CO2 emission at first, but later comes the decrease and then increase. The paper has relevant implications for law makers.

Analysis on the Energy Consumption (EC) and Carbon Emission (CE) of Tourism Transport of Jiangxi Province Using the PLS Method

2014 ◽  
Vol 535 ◽  
pp. 533-536
Author(s):  
Jun Song Jia ◽  
Cai Hua Kuang ◽  
Lin Lin Hu
Keyword(s):  
Energy Consumption ◽  
Carbon Emission ◽  
Local Development ◽  
Tourism Industry ◽  
Gdp Per Capita ◽  
Carbon Intensity ◽  
Annual Growth Rate ◽  
Per Capita ◽  
The Impact ◽  
Pls Method

Taking Jiangxi of China as an example, we, firstly, accounted the energy consumption (EC) and carbon emission (CO2, CE) of this provinces tourism transport in recently 13 years. Then, we used the Partial Least Squares (PLS) method to analysis the drivers of the CE. Results show that: 1Respectively, the EC and CE of tourism transport in Jiangxi in 1999 were 4.2 PJ and 0.46 Mt. They grew up to 31.9 PJ and 3.59 Mt in 2011. The increasing amounts were 27.7 PJ and 3.13 Mt, with an average annual growth rate of 18.4% and 18.6%. These meant that with the improvement of living standards, more and more people engaged in the activities of tourism industry. 2The consumption demand of peoples tourism had been greatly released in 2004 and 2011, which could arise from the influences of the "SARS" in 2003 and the global financial crisis in 2008, respectively. 3The importance of the latent drivers can be sorted as the following order: A2 (square of GDP per capita), A (GDP per capita), T (carbon intensity), T1 (EC intensity) and P (population). The impact on the CE from T2 (the factor denoted by T/T1) is negligible. The impact of U (urbanization rate) is little. The A2, A, T, T1 and P have an increase of 1%. The corresponding CE will have an increase of 0.275%, 0.259%, 0.148%, 0.145% and 0.131%, respectively. In the end, some suggestions are proposed for local development: to speed up the pattern's upgrade of the development, to promote the implementation of energy saving, to improve the technical level and energy efficiency so as to reduce the regional energy intensity, to go on controlling population growth and to boost the new-type urbanization, to some extent.

scholarly journals Economic impacts of a glacial period: a thought experiment to assess the disconnect between econometrics and climate sciences

2020 ◽  
Vol 11 (4) ◽  
pp. 1073-1087
Author(s):  
Marie-Noëlle Woillez ◽  
Gaël Giraud ◽  
Antoine Godin
Keyword(s):  
Global Warming ◽  
Thought Experiment ◽  
Relevant Information ◽  
Gdp Per Capita ◽  
Economic Damage ◽  
Gdp Growth ◽  
Country Level ◽  
The World ◽  
Per Capita ◽  
The Impact

Abstract. Anthropogenic climate change raises growing concerns about its potential catastrophic impacts on both ecosystems and human societies. Yet, several studies on damage induced on the economy by unmitigated global warming have proposed a much less worrying picture of the future, with only a few points of decrease in the world gross domestic product (GDP) per capita by the end of the century, even for a global warming above 4 ∘C. We consider two different empirically estimated functions linking GDP growth or GDP level to temperature at the country level and apply them to a global cooling of 4 ∘C in 2100, corresponding to a return to glacial conditions. We show that the alleged impact on global average GDP per capita runs from −1.8 %, if temperature impacts GDP level, to +36 %, if the impact is rather on GDP growth. These results are then compared to the hypothetical environmental conditions faced by humanity, taking the Last Glacial Maximum as a reference. The modeled impacts on the world GDP appear strongly underestimated given the magnitude of climate and ecological changes recorded for that period. After discussing the weaknesses of the aggregated statistical approach to estimate economic damage, we conclude that, if these functions cannot reasonably be trusted for such a large cooling, they should not be considered to provide relevant information on potential damage in the case of a warming of similar magnitude, as projected in the case of unabated greenhouse gas emissions.

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