scholarly journals Determinants of Life Expectancy in Most Polluted Countries: Exploring the Effect of Environmental Degradation

2020 ◽  
Author(s):  
Mafiz Rahman ◽  
Rezwanul Rana ◽  
Rasheda Khanam
Keyword(s):  
Drinking Water ◽  
Life Expectancy ◽  
Environmental Degradation ◽  
Carbon Emissions ◽  
Least Square ◽  
Annual Data ◽  
British Petroleum ◽  
Causality Test ◽  
Cross Sectional ◽  
Preston Curve

Abstract Background: Better understanding of the determinants of national life expectancy is crucial for economic development, as healthy nation is a prerequisite for a wealthy nation. Many socioeconomic, nutritional, lifestyle, genetic and environmental factors can influence a nation’s health and longevity. Environmental degradation is one of the critical determinants of life expectancy, which is still under researched as the literature suggests Objectives: This study aims to investigate the determinants of life expectancy in 31 world’s most polluted countries with particular attention on environmental degradation using the World Bank annual data and British Petroleum data over the period of 18 years (2000-2017), Methods: The empirical investigation is based on the model of Preston Curve where panel corrected standard errors (PCSE) and feasible general least square (FGLS) estimates are employed to explore the long run effects. Pairwise Granger causality test is also used to have short run causality among the variables of interest taking into account the cross sectional dependence test and other essential diagnostic tests. Results: The results confirm the existence of Preston Curve, implying the positive effect of economic growth on the life expectancy. Environmental degradation is found as a threat while health expenditure, clean water and improved sanitation affect the life expectancy positively in the sample countries. The causality test results reveal one-way causality from carbon emissions to life expectancy and bidirectional causalities between drinking water and life expectancy, and sanitation and life expectancy. Conclusion: Our results reveal that environmental degradation is a threat for having the improved life expectancy in our sample countries. Based on the results of this study, we recommend that: (1) policy marker of these countries should adopt policies that will reduce carbon emissions and thus will improve public health and productivity; (2) environment-friendly technologies and resources, such as renewable energy, should be used in production process; (3) healthcare expenditure on national budget should be increased; and (4) clean drinking water and basic sanitation facilities must be ensured for all people.

Financial inclusion and economic growth nexus: Evidence from SAARC countries

2020 ◽  
pp. 026272802096460
Author(s):  
Dharmendra Singh ◽  
Nikola Stakic
Keyword(s):  
Economic Growth ◽  
Regional Cooperation ◽  
Financial Inclusion ◽  
Least Square ◽  
Annual Data ◽  
Causality Test ◽  
Ordinary Least Square ◽  
Regression Methods ◽  
Long Run ◽  
Integration Test

This article examines the nexus between financial inclusion index and economic growth in all eight South Asian Association for Regional Cooperation (SAARC) countries, using annual data from 2004 to 2017. In order to determine the possible long-run relationship between these variables, the study adopted the Pedroni panel co-integration test and two types of co-integration regression methods, the Fully Modified Ordinary Least Square (FMOLS) and the Dynamic Ordinary Least Square (DOLS) methods. The Pedroni panel co-integration test confirms the existence of a long-run relationship between financial inclusion and economic growth in the SAARC countries. The coefficients of FMOLS and DOLS indicate that the index of financial inclusion and selected control variables together support economic growth. In addition, the Granger causality test confirmed bi-directional causality between FI and economic growth.

scholarly journals Sustainability of the Moderating Role of Financial Development in the Determinants of Environmental Degradation: Evidence from Turkey

2021 ◽  
Vol 13 (4) ◽  
pp. 1844 ◽  
Author(s):  
Husam Rjoub ◽  
Jamiu Adetola Odugbesan ◽  
Tomiwa Sunday Adebayo ◽  
Wing-Keung Wong
Keyword(s):  
Economic Growth ◽  
Financial Development ◽  
Environmental Degradation ◽  
Carbon Emissions ◽  
Capital Formation ◽  
Least Square ◽  
Long Run ◽  
Dynamic Ols ◽  
Moderating Role

One of the questions that remain unanswered in the literature on determinants of carbon emissions is the moderating effect of “financial development”. This becomes imperative, owing to the connection of carbon emissions to environmental degradation, which is considered to be one of the main challenges to sustainable development. Thus, this study investigated the moderating role of financial development in the determinants of carbon emissions for Turkey during the period of 1960 to 2016. Zivot–Andrew and Lee–Strazicich “unit root tests” were utilized to investigate the stationarity properties of the series. The cointegration among the variables employed was examined by utilizing the ARDL bounds test and Bayer–Hanck cointegration test. In contrast, the long-run causal relationship of the variables with carbon emissions was examined by using fully modified ordinary least square (FMOLS), dynamic OLS (DOLS), and Canonical Cointegrating Regression (CCR). The empirical findings reveal the significance of “economic growth”, “capital formation”, “energy consumption”, “urbanization”, and “financial development” as determinants of environmental degradation in Turkey. The study also found the significant moderating role of “financial development” in the relationship between “economic growth” and carbon emissions, capital formation and carbon emissions, and urbanization and carbon emissions. The environmental–financial related policies were suggested for the policymakers in Turkey to aid the reduction of carbon emission with the view of improving environmental quality.

scholarly journals Solar Energy and CO2 Emissions: CCEMG Estimations for 26 Countries

2021 ◽  
Author(s):  
Taner Güney ◽  
Duygu Ince
Keyword(s):  
Economic Growth ◽  
Renewable Energy ◽  
Energy Consumption ◽  
Solar Energy ◽  
Carbon Emissions ◽  
Environmental Sustainability ◽  
Causality Test ◽  
Cross Sectional ◽  
Common Correlated Effects ◽  
The Impact

Abstract Although research establishes that the impact of renewable energy on environmental sustainability is critical in the era of globalization, the individual impact of renewable energy on the environment is often ignored. Therefore, this article examines the long-term relationships and direction of these relationships between solar energy consumption, coal energy consumption, financial globalization, economic growth, and environmental pollution for the period from 2000 to 2019 for 26 countries. The study used a range of econometric techniques that account for the cross-sectional dependence and slope homogeneity observed in the panel. The results of the common correlated effects mean group (CCEMG) estimator showed that solar energy consumption has a negative and significant effect on the level of carbon emissions. In addition, economic growth and coal energy increase carbon emissions. Finally, the results of the panel causality test confirmed the existence of various causal relationships among the variables.

scholarly journals Impact of Monetary Policy Uncertainty and Fiscal Policy Uncertainty on CO2 Emissions in the Us

2020 ◽  
Author(s):  
Khalid Anser ◽  
Qasim Syed ◽  
Noreen Khalid ◽  
Jamshid Ali Turi ◽  
Juned Ali Shah
Keyword(s):  
Monetary Policy ◽  
Fiscal Policy ◽  
Environmental Degradation ◽  
Carbon Emissions ◽  
Annual Data ◽  
Policy Uncertainty ◽  
Policy Makers ◽  
Long Run ◽  
Short Run ◽  
The Impact

Abstract Nowadays, environmental degradation is perceived as one of the serious concerns across the globe. One of the prime reasons behind environmental degradation is CO2 emissions. Therefore, researchers are actively putting their efforts to explore the determinants of CO2 emissions to mitigate CO2 emissions. On this basis, the present study contributes to the existing literature by investigating the impact of monetary policy uncertainty (MPU) and fiscal policy uncertainty (FPU) on CO2 emissions (environmental degradation). The current study employs ARDL methodology and uses annual data ranging from 1985 to 2019 for US. The results from the ARDL model report that there is an existence of long-run relationship among the variables. Moreover, MPU escalates the carbon emissions in both short-run and long-run. This implies that increase in MPU is responsible for rise in environmental degradation. On the contrary, FPU plunges the carbon emissions in both short- and long-run. This indicates that increase in FPU decreases the environmental degradation. Findings from the current study propose that policy makers should introduce reforms and launch policies to shrink MPU. Next, this study proposes that rule should be adopted as monetary policy making framework in lieu of discretion. Furthermore, the current study recommends that FPU should not be utilized as a tool to mitigate environmental degradation, because FPU has severe economic impacts.

Does inflation instability affect environmental pollution? Fresh evidence from Asian economies

2020 ◽  
pp. 0958305X2097180 ◽  
Author(s):  
Waheed Ahmad ◽  
Sana Ullah ◽  
Ilhan Ozturk ◽  
Muhammad Tariq Majeed
Keyword(s):  
Empirical Finding ◽  
Price Volatility ◽  
Least Square ◽  
Data Series ◽  
Causality Test ◽  
Cross Sectional ◽  
Investment Projects ◽  
Long Run ◽  
Asian Economies ◽  
Pollution Emissions

The present study examines the linkage between inflation instability and pollution emissions for the 40 Asian economies over the period of 1990–2018. However, a limited number of researches investigate the linkage between inflation instability and the environment. For empirical analysis, econometric methods namely cross-sectional test statistics for examining the dependency, cross-sectionally augmented Dickey-Fuller (CADF) and cross-sectional Im, Pesaran, and Shin (CIPS) for the panel unit root, Westerlund technique for the long-run relationship, and Fully Modified Ordinary Least Square (FMOLS) to estimate the long-run coefficients have adopted. Additionally, the Dumitrescu and Hurlin panel causality test is applied to investigate the causal nexus among the panel data series. The empirical finding depicts that inflation instability improves environmental performance implying that higher price volatility creates uncertainty that discourages investment projects and consumption, hence improves environmental quality. However, the results indicate that financial development stimulates pollution emissions and degrades environmental condition. Based on these findings, the study opens up innovative intuitions for policymakers to support a robust role of economic stability in attaining targets relevant to pollution reduction.

scholarly journals Insurance Industry and Non-Agriculture Sector of Nepal: An Empirical Study

2013 ◽  
Vol 3 (1) ◽  
pp. 43-60 ◽  
Author(s):  
Hom Nath Gaire
Keyword(s):  
Insurance Industry ◽  
Unit Root Test ◽  
Least Square Method ◽  
Least Square ◽  
Annual Data ◽  
Strong Positive Correlation ◽  
Causality Test ◽  
Agriculture Sector ◽  
Real Gdp ◽  
Integration Test

In this paper, an attempt has been made to analyse relationship between Nepalese insurance industry and the non-agriculture sector using the annual data of the period of 1997 to 2010. In order to accomplish this goal, unit root test, co-integration test, granger causality test, and ordinary least square method of regression analysis have been performed. The empirical result from the co-integration tests clearly shows that there is a long-run relationship between total premium collection and Resources/Liabilities of Nepalese insurance industry vis-á-vis non-agriculture real GDP. Likewise, the null hypotheses that the total premium collection and Resource/Liabilities does not granger cause non-agriculture and real GDP of Nepal and was rejected. Moreover, estimated coefficients of regression models also indicate that there is strong positive correlation between the insurance industry and non-agriculture sector of Nepal. DOI: http://dx.doi.org/10.3126/bj.v3i1.7510 Banking Journal Vol.3(2) 2013 pp.43-60

scholarly journals Modeling the Dynamic Linkage between Tourism Development, Technological Innovation, Urbanization and Environmental Quality: Provincial Data Analysis of China

2021 ◽  
Vol 18 (16) ◽  
pp. 8456
Author(s):  
Zhang Chenghu ◽  
Muhammad Arif ◽  
Khurram Shehzad ◽  
Mahmood Ahmad ◽  
Judit Oláh
Keyword(s):  
Technological Innovation ◽  
Environmental Degradation ◽  
Environmental Quality ◽  
Carbon Emissions ◽  
Tourism Development ◽  
The Other ◽  
Economic Methodology ◽  
Causality Test ◽  
Panel Causality ◽  
Long Run

This study investigates the linkage between tourism development, technological innovation, urbanization and environmental degradation across 30 provinces of China. Based on data from 2001 to 2018, the study used an advanced economic methodology for the long-run estimate, the Augmented Mean Group (AMG) estimator, which accounts for heterogeneity in slope parameters and dependencies across countries. The empirical results show that tourism development degrades environmental quality, while technological innovation mitigates carbon emissions. Further, findings show that urbanization increases carbon emissions, while an inverted U-shaped relationship exists between economic growth and environmental degradation, implying the existence of EKC in China. Further, the Dumitrescu–Hurlin panel causality test shows that any policy aimed at tourism development or technological innovation would substantially contribute to environmental degradation, but not the other way round.

scholarly journals Accounting Information and Market Value of Quoted Manufacturing Firms: Panel Data Evidence from Nigeria

2020 ◽  
Vol 5 (1) ◽  
pp. 1-16
Author(s):  
Okoro Innocent ◽  
E.A.L. Ibanichuka ◽  
L.C. Micah
Keyword(s):  
Random Effect ◽  
Accounting Information ◽  
Market Value ◽  
Fixed Effect ◽  
Least Square ◽  
Causality Test ◽  
Cross Sectional ◽  
Manufacturing Firm ◽  
Return On Equity ◽  
Earnings Per Share

This study the relationship between accounting information and the market value of quoted firms in Nigeria. The general objective was to examine if accounting information have any effect on market value of quoted firms.  Cross sectional data was sourced from financial statement of 23 manufacturing firm from 2008-2017. Market value of the firms was modeled as a function of earnings per share, return on equity and dividend per share. Ordinary least square method of cointgration, unit root and granger causality test was used to determine the extent to which human resource cost affect quality of financial report. After cross examination of the validity of the pooled effect, fixed effect and the random effect, the study accepts the fixed effect model.  The study found that the independent variables explained 79 percent variation on the market value of the quoted firms. The beta coefficient of the variables indicates return on equity; earnings per share, dividend per share have positive effect on the market value of the quoted firms. From the regression summary, the study concludes that there is significant relationship between accounting information and market value of the quoted firms. The study recommends that management of the firms should formulate dividend policy that enhances the market value of the firms. Corporate strategies should be directed toward internal and external factors that affect earnings per share.

Freedom Indices and Capital Asset Pricing Model: Some Malaysian Evidence

2020 ◽  
Vol 1 (1) ◽  
pp. 1-21
Author(s):  
Ying Tay Lee ◽  
Devinaga Rasiah ◽  
Ming Ming Lai
Keyword(s):  
Human Rights ◽  
Asset Pricing ◽  
Stock Returns ◽  
Firm Size ◽  
Explanatory Power ◽  
Least Square ◽  
Press Freedom ◽  
Capital Asset Pricing ◽  
Capital Asset ◽  
Cross Sectional

Human rights and fundamental freedoms such as economic, political, and press freedoms vary widely from country to country. It creates opportunity and risk in investment decisions. Thus, this study is carried out to examine if the explanatory power of the model for capital asset pricing could be improved when these human rights movement indices are included in the model. The sample for this study comprises of 495 stocks listed in Bursa Malaysia, covering the sampling period from 2003 to 2013. The model applied in this study employed the pooled ordinary least square regression estimation. In addition, the robustness of the model is tested by using firm size as a controlled variable. The findings show that market beta as well as the economic and press freedom indices could explain the cross-sectional stock returns of the Malaysian stock market. By controlling the firm size, it adds marginally to the explanation of the extended CAP model which incorporated economic, political, and press freedom indices.

Role of Credit Rating in determining Capital structure: Evidence from Non-Financial sector of Pakistan

2020 ◽  
Vol 38 (3) ◽  
Author(s):  
Shoaib Ali ◽  
Imran Yousaf ◽  
Muhammad Naveed
Keyword(s):  
Capital Structure ◽  
Credit Rating ◽  
Least Square ◽  
Annual Data ◽  
Leverage Ratio ◽  
Financial Decisions ◽  
Financial Firms ◽  
High Level ◽  
The Impact ◽  
The Capital Structure

This paper aims to examine the impact of external credit ratings on the financial decisions of the firms in Pakistan.  This study uses the annual data of 70 non-financial firms for the period 2012-2018. It uses ordinary least square (OLS) to estimate the impact of credit rating on capital structure. The results show that rated firm has a high level of leverage. Moreover, Profitability and tanagability are also found to be a significantly negative determinant of the capital structure, whereas, size of the firm has a significant positive relationship with the capital structure of the firm.  Besides, there exists a non-linear relationship between the credit rating and the capital structure. The rated firms have higher leverage as compared to the non-rated firms. The high and low rated firms have a low level of leverage, while mid rated firms have a higher leverage ratio. The finding of the study have practical implications for the manager; they can have easier access to the financial market by just having a credit rating no matter high or low. Policymakers must stress upon the rating agencies to keep improving themselves as their rating severs as the measure to judge the creditworthiness of the firm by both the investors and management as well.

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