ASYMMETRIC EFFECT OF OIL PRICE UNCERTAINTY ON ECONOMIC GROWTH BY GMM

2017 ◽  
Vol 73 (7) ◽  
Author(s):  
Naser seifollahi
Keyword(s):  
Economic Growth ◽  
Oil Price ◽  
Price Uncertainty ◽  
Asymmetric Effect

Asymmetric Effect of Economic Growth and Oil Price on Carbon Emission in Turkey

2021 ◽  
Author(s):  
Duygu Serin Oktay
Keyword(s):  
Economic Growth ◽  
Renewable Energy ◽  
Carbon Emissions ◽  
Capita Income ◽  
Carbon Emission ◽  
Fossil Fuels ◽  
Oil Price ◽  
Asymmetric Effect ◽  
Per Capita Income ◽  
Per Capita

Today, one of the most important global problems is the phenomenon of climate change. The main reason for this phenomenon is that all the energy required for production and consumption is provided from fossil fuels instead of renewable energy sources. The widespread use of fossil fuels increases carbon emissions intensity. Due to the importance of carbon emissions, it is aimed to determine the asymmetric effect of economic growth and oil price on carbon emissions in Turkey. For this purpose, the long and short-term effects of per capita income and oil price on carbon emissions are analyzed using the nonlinear ARDL cointegration method between 1987-2019. The findings support the Environmental Kuznets Curve hypothesis for the relationship between carbon emissions and per capita income for Turkey. In addition, it has been determined that there is a significant and asymmetrical effect between oil prices and carbon emissions in the long run. While the increase in the oil price tends to decrease carbon emission, the decrease in the oil price leads to increase in carbon emission in the long term. In line with these results, economic growth and energy policies are critical in reducing environmental problems caused by carbon emissions in Turkey. Namely, it is necessary to implement environmental policies that support economic growth to reduce the impact of environmental degradation in Turkey. Especially renewable energy consumption should be increased for sustainable growth. Therefore, research on renewable energy should be encouraged and it is important to implement training activities required for technology production.

scholarly journals Hot Money and Stock Market in China: Empirical Evidence from ARDL and NARDL Approaches

2021 ◽  
Vol 22 (2) ◽  
pp. 713-733
Author(s):  
Kwang-Jing Yii ◽  
Chai-Thing Tan ◽  
Nian-Meng Tan ◽  
Xue-Wen Teng ◽  
Ting-En Khor ◽  
...  
Keyword(s):  
Economic Growth ◽  
Stock Market ◽  
Negative Relationship ◽  
Oil Price ◽  
Asymmetric Effect ◽  
Distributed Lag ◽  
Autoregressive Distributed Lag ◽  
Long Run ◽  
Nonlinear Autoregressive ◽  
Hot Money

This study discusses the relationship between hot money and stock market in China by employing the Autoregressive Distributed Lag (ARDL) and Nonlinear Autoregressive Distributed Lag (NARDL) methods. The data used in this study is quarterly data over the period 2000: Q1 to 2017: Q4. The results show that oil price, economic growth and hot money possess a long-run relationship towards stock market in China, whereas, no effect is found from inflation. The oil price and economic growth are both positively related to stock market while there is a negative relationship from hot money. Furthermore, the study supports the existence of an asymmetric effect between hot money and stock market. The findings imply that policymakers should form better monitoring systems to control the inflow of hot money, thus, strengthening investors’ confidence and avoiding unwanted bubbles in China’s stock market.

scholarly journals Oil Price Uncertainty, Globalization, and Total Factor Productivity: Evidence from the European Union

Energies ◽  
2021 ◽  
Vol 14 (12) ◽  
pp. 3429
Author(s):  
Svetlana Balashova ◽  
Apostolos Serletis
Keyword(s):  
European Union ◽  
Total Factor Productivity ◽  
New Technologies ◽  
Innovation System ◽  
Price Volatility ◽  
Oil Price ◽  
Price Uncertainty ◽  
The European Union ◽  
Factor Productivity ◽  
Tfp Growth

This paper uncovers linkages between oil price uncertainty, total factor productivity (TFP) growth, and critical indicators of knowledge production and spillovers. It contributes to the literature by investigating the effects of oil price volatility on TFP growth, controlling for two different channels for TFP growth; benefits from the quality of the national innovation system and from adopting new technologies. We use an unbalanced panel for 28 European Union countries for the period from 1990 to 2018. We find that oil price uncertainty has a negative and statistically significant effect on TFP growth, even after we control for technological advancements and the effects of globalization. We also find that the scale of research and innovation and international trade are positive contributors to TFP growth.

Government spending shocks and economic growth: additional evidence from cyclical behavior of fiscal policy

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Olumide Olusegun Olaoye ◽  
Ukafor Ukafor Okorie ◽  
Oluwatosin Odunayo Eluwole ◽  
Mahmood Butt Fawwad
Keyword(s):  
Economic Growth ◽  
Business Cycle ◽  
Government Spending ◽  
Generalized Method Of Moments ◽  
The State ◽  
Fiscal Policies ◽  
Asymmetric Effect ◽  
Content Type ◽  
Spending Shocks ◽  
The Business Cycle

PurposeThis study examines the asymmetric effect of government spending on economic growth in Nigeria over the period 1980–2017. Specifically, this study investigates whether the response of economic growth to government spending shocks differs according to the nature of shocks on them. In addition, the authors examine whether the stabilizing effects of fiscal policies are dependent on the state of the business cycle.Design/methodology/approachThe study adopts the linear fiscal reaction function in addition to the nonlinear regression model of Hatemi-J (2011, 2012), Granger and Yoon (2002), which allows us to separate negative shocks from positive shocks to government spending. Similarly, the authors adopt the generalized method of moments (GMM) techniques of Hansen (1982) to account for simultaneity and endogeneity problems inherent in dynamic model.FindingsThe authors’ findings reveal that there is evidence of asymmetry in the government spending–economic growth nexus in Nigeria over the period of study. Specifically, the authors find that the response of economic growth to government spending shocks differs according to the nature of shocks on them. More specifically, the study established that the stabilizing effects of fiscal policies are dependent on the state of the business cycle.Originality/valueUnlike the traditional method of modeling asymmetry, which adopts the simple inclusion of a squared government spending term or by the inclusion of a cubic government spending term, the model adopted in this study allows us to model shocks and show how the responses of economic growth to government expenditure differ according to the nature of shocks on them.

Oil Price—Macroeconomy Causality: Evidence from Emerging Economies

2021 ◽  
Keyword(s):  
Economic Growth ◽  
Causal Relationship ◽  
Emerging Economies ◽  
Oil Prices ◽  
Oil Price ◽  
China And India ◽  
Cross Country

This paper investigates whether changes in oil prices could explain cross-country variations in economic growth. The sample included WANA countries, China and India. The findings indicated bidirectional oil price-economy causality in the WANA region’s oil-exporting countries. In addition, a unidirectional causality running from changing oil prices to growth was found in the WANA region. However, there was no clear oil price-economy causal relationship for non-oil WANA countries, China and India. The study recommended diversification and fuel pricing reforms to create a robust fiscal balanced and sustained economic growth.

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