scholarly journals Drivers of agricultural productivity: Evidence from transforming economies

2021 ◽  
Vol 54 (1) ◽  
pp. 14-23
Author(s):  
Olatokunbo Hammed Osinowo ◽  
Esther Toluwatope Tolorunju ◽  
Iyabosola Mary Osinowo
Keyword(s):  
Human Capital ◽  
Least Squares ◽  
Unit Root ◽  
Agricultural Productivity ◽  
Impulse Response Function ◽  
Unit Root Test ◽  
Panel Cointegration ◽  
Agricultural Trade ◽  
Cointegration Test ◽  
Panel Cointegration Test

Abstract This study empirically investigates the drivers of agricultural productivity in transforming economy. The study used a 35-year period (1980–2014) panel data sourced from World Development Indicators, Penn World Table, United States Department of Agriculture and Statistics on Public Expenditure for Economic Development. Data used for the study include Agricultural Productivity (AP), Real Gross Domestic Product (GDP), Government Agricultural Expenditure (EXP), Agricultural Trade Barrier (ATB), Consumer Price Index (CPI), Farm Machinery (MACH), Fertiliser (FERT), Human Capital (HCAP) and Irrigation (IRRG). Data were analysed using Impulse Response Function, Levin-Lin-Chu unit root test, Johansen-Fisher Panel Cointegration test and Panel Least Squares regression technique. Impulse Response Function revealed that ln (GDP)reacted negatively to a shock from ln (Agricultural Productivity). Levin-Lin-Chu unit root test revealed that the variables were stationary either at level or at first difference. The result of the Johansen-Fisher panel cointegration test showed that for every case at 5 percent level of significance, we reject null hypothesis of no cointegration. Panel Least Squares revealed that Agricultural Trade Barrier (α = 0.0531, p < 0.05), Human Capital (α = 1.2409, p < 0.01) and Irrigation (α = 0.0771, p < 0.01) increased Agricultural Productivity. However, Fertilizer (α = −0.0730, p < 0.01) decreased Agricultural Productivity. This study therefore concluded that Agricultural Productivity will grow in transforming economy with trade restriction on imported agricultural tradable commodities, increased investment in human capital and expansion in irrigation application. The study therefore recommends measures that will protect domestic agriculture, capacity building of the farmers and improved irrigation infrastructure that will enhance small scale farmers for all-season cropping.

scholarly journals Comparative Study of the Impact of Oil Rent on Healthcare in Nigeria and Cameroon: A Three Stage Methodical Approach

2019 ◽  
pp. 58-63
Author(s):  
EWUBARE, Dennis Brown ◽  
OBAYORI, Elizabeth Lizzy
Keyword(s):  
Rural Areas ◽  
Unit Root ◽  
Capital Expenditure ◽  
Unit Root Test ◽  
Panel Cointegration ◽  
Cointegration Test ◽  
Panel Unit Root ◽  
Long Run ◽  
Oil Rents ◽  
The Impact

The study comparatively examined the impact of oil rent on healthcare in Nigeria and Cameroon from 1995 to 2015. The objectives of the study are to; study the trend of oil rents and healthcare in Nigeria and Cameroon; examine the relationship between oil rent and healthcare of Nigerians and Cameroonians and determine the impact of mineral rent on the healthcare of Nigeria and Cameroon. To achieve these objectives panel data were collected on health, oil rent and mineral rent and analyzed using the econometric techniques of panel unit root test and panel cointegration test as well as graphical method. The panel unit root and cointegration test showed that all the series are indeed stationary and have long run equilibrium relationship. Comparatively, the graph showed that the rents from oil in Nigeria are lower than that of Cameroon. Also, Cameroon performs better in rents from minerals than Nigeria. Thus, Cameroon capital expenditure on health has steadily increased since 1995 up to 2015 while Nigeria seems not to take healthcare expenditure serious hence the dismal performance in the infant mortality rates. Based on the findings, it is recommended that revenue from oil should be towards inclusive growth, thereby impacting significantly on the healthcare and welfare of the citizens. Thus, there should be investment in primary as well as maternal health in the rural areas for the disadvantaged in society.

scholarly journals Revisiting Banking Stability Using a New Panel Cointegration Test

2021 ◽  
Vol 9 (2) ◽  
pp. 21
Author(s):  
Hassan B. Ghassan ◽  
Zakaria Boulanouar ◽  
Kabir M. Hassan
Keyword(s):  
Cross Section ◽  
Serial Correlation ◽  
Panel Cointegration ◽  
Cointegration Test ◽  
Current Version ◽  
Medium Term ◽  
Long Run ◽  
Panel Cointegration Test ◽  
Banking Stability ◽  
Score Index

Using a new panel cointegration test that considers serial correlation and cross-section dependence on a mixed and heterogenous sample of Saudi banks, we revisit the cointegrating equation of the z-score index of banking stability. Our results show that even when we consider the cross-section dependency and serial correlation of the errors, there is a possibility of a long-run relationship, which holds in our sample of banks. Furthermore, in the medium term, we found some banks to be integrated, whereas others were non-cointegrated. We interpret this to suggest that some banks contribute to banking stability, whereas others do not. In other words, there exists at least one bank that acts as a destabilizer and the challenge for financial regulators is to identify which banks these are. However, the current version of the Hadri et al. test does not allow for the identification of the non-cointegrated banks. If the test was able to do that, the regulatory authorities would be able to develop corrective policies/measures specifically tailored to the non-cointegrated units.

scholarly journals The Impact of Austerity Measures on Government Borrowing in GIIPS

2016 ◽  
Vol 8 (12) ◽  
pp. 106 ◽  
Author(s):  
Imre Ersoy ◽  
Talha Yanmaz
Keyword(s):  
Empirical Analysis ◽  
Rate Increase ◽  
Panel Cointegration ◽  
Government Debt ◽  
Cointegration Test ◽  
Tax Rate ◽  
Economic Agents ◽  
Panel Cointegration Test ◽  
Using Data ◽  
The Impact

The article investigates the effects of austerity measures on government debt in Greece, Ireland, Italy, Portugal and Spain (GIIPS) by employing panel cointegration test and using data between 1998 and 2014. The result of empirical analysis shows that tax rate increase on personal income did not result with decrease in government debt. Interest rate and wage that are control variables are also positively related with government debt levels. The result of this empirical analysis suggests that the impact of austerity measures on government borrowing in GIIPS is positive, despite the expectations of certain economic agents.

Investigation of the Foreign Direct Investment and Environmental Pollution Nexus for Developing Countries

2021 ◽  
pp. 320-338
Author(s):  
Orkun Çelik ◽  
Özge Korkmaz ◽  
Zafer Adalı
Keyword(s):  
Developing Countries ◽  
Foreign Direct Investment ◽  
Environmental Pollution ◽  
Direct Investment ◽  
Panel Cointegration ◽  
Cointegration Test ◽  
Annual Data ◽  
Pollution Haven ◽  
Panel Cointegration Test

In theory, the foreign direct investment and environmental pollution nexus is explained by three hypotheses. Firstly, pollution haven hypothesis assumes that there is a positive nexus between these variables. Secondly, pollution halo hypothesis supposes that there is negative connection between these variables. Lastly, neutrality hypothesis asserts the non-existence of the connection between these variables. In recent years, many researchers have frequently tested whether these hypotheses are valid for different countries. In this study, applying Westerlund panel cointegration test, the authors aim to explore the nexus between foreign direct investment and environmental pollution for 23 developing countries after global crisis. For this aim, they use annual data covering the period 2009-2019. According to the obtained empirical findings, the presence of the long-term nexus between foreign direct investment and environmental pollution is not detected for 23 developing countries. Accordingly, the authors can say that there is neutrality hypothesis.

scholarly journals ANALISIS HUBUNGAN PENDAPATAN WISATAWAN DAN HARGA PARIWISATA TERHADAP PERMINTAAN PARIWISATA DENGAN VECM

2016 ◽  
Vol 5 (2) ◽  
pp. 44
Author(s):  
MERARY SIANIPAR ◽  
NI LUH PUTU SUCIPTAWATI ◽  
KOMANG DHARMAWAN
Keyword(s):  
Unit Root ◽  
Unit Root Test ◽  
Cointegration Test ◽  
Tourism Demand ◽  
Long Run ◽  
Negative Effect ◽  
Short Run ◽  
The Relationship ◽  
Positive Effect

Tourism demand is focused on estimating variables which influence tourist visit. The tourism demand that we discuss on this research is the tourism demand to Bali of the major tourism-generating country was Australia. The aim of this research is to analyze the relationship between tourist income and tourism price to tourism demand using VECM. VECM requires that the variables in the model must be stationary and fulfilled a cointegration condition. In order to make it valid, the stationarity of variables in the model have to be checked using ADF unit root test. In additon, cointegration between these variables are examined using Johansen’s cointegration test. The results of ADF unit root test show that indicated the tourist income, the tourism price and the tourism demand for Australia data are stationary in first lag or I(1). Cointegration test shows that all variables are cointegrated, i.e. have a long-run relationship. In the long-run, the tourist income and tourism price give positive effect to the tourism demand. This means, the increase of tourist income and tourism price will contribute to the increase in tourism demand. In addition, in the short-run, the tourist income and the tourism price give negative effect to the tourism demand. This means, the increase of tourist income and tourism price will contribute to the decrease in tourism demand.

Panel Data Analysis of Financial Development, Trade Openness, and Economic Growth: Evidence from BRICS Countries

2018 ◽  
Vol 4 (1) ◽  
pp. 1-18 ◽  
Author(s):  
Ritu Rani ◽  
Naresh Kumar
Keyword(s):  
Economic Growth ◽  
Trade Openness ◽  
Panel Cointegration ◽  
Least Square ◽  
Cointegration Test ◽  
Ordinary Least Square ◽  
Brics Countries ◽  
Long Run ◽  
Panel Granger Causality ◽  
Panel Cointegration Test

The purpose of this article is to investigate the possible cointegration and direction of causality between foreign direct investment (FDI) inflow, trade openness, and economic growth in BRICS countries using panel data from 1993 to 2015. Besides these variables, money supply and domestic credit (DC) to private players are also added in the model to examine the impact of financial openness on economic growth. The Pedroni’s panel cointegration test is used to examine the existence of long-run relationship, and coefficients of cointegration are examined by fully modified ordinary least square (FMOLS) and dynamic ordinary least square (DOLS). Further panel Granger causality test is used to examine the direction of causality among the competing variables. The results of Pedroni’s panel cointegration test indicate that there exists a long-run relationship among the variables under considerations in BRICS countries. The coefficient of FMOLS and DOLS indicates that trade openness has a positive impact on economic growth in BRICS countries while FDI inflow has a negative impact in these nations. In addition, the results of panel Granger causality confirmed bidirectional causality between FDI inflow and economic growth in the short run. The study recommends that BRICS countries should liberalize trade openness as it strengthens the position of member countries in the world economy.

Investigating energy consumption and economic growth for BRICS-T countries

2019 ◽  
Vol 16 (4) ◽  
pp. 184-195 ◽  
Author(s):  
Durmuş Çağrı Yıldırım ◽  
Seda Yıldırım ◽  
Isıl Demirtas
Keyword(s):  
Economic Growth ◽  
Energy Consumption ◽  
Energy Savings ◽  
Panel Cointegration ◽  
Cointegration Test ◽  
Real Output ◽  
Content Type ◽  
Natural Logarithm ◽  
Panel Cointegration Test ◽  
The Relationship

Purpose The purpose of this paper is to explore the relationship between energy consumption and economic growth for Brazil, Russia, China, India, South Africa and Turkey (BRICS-T) countries. In this context, this study investigates energy consumption and real output in BRICS-T countries through panel cointegration. Design/methodology/approach The data include energy consumption and real output for BRICS-T countries and period of 1990–2014. The variables are transformed into natural logarithm. To analyze these data, this study employed Pedroni cointegration test, the second-generation panel cointegration test, Westerlund and Edgerton (2008) test and FMOLS test. Findings Results indicate that there is a bi-directional causality relationship between energy consumption and economic growth for BRICS-T countries. An increase in GDP leads to an increase in energy consumption and an increase in energy consumption leads to an increase in GDP. Research limitations/implications This study used data that include the period of 1990–2014 for BRICS-T countries. So, further studies can use different periods of data or different countries. Originality/value This study provides important evidence that countries with strong growth performance need to follow bi-directional energy policies to increase both energy investments and ensure energy savings.

scholarly journals The Corruption-Terrorism Nexus: A Panel Data Approach

2016 ◽  
Vol 8 (11) ◽  
pp. 111 ◽  
Author(s):  
Nahil Boussiga ◽  
Malek Ghdamsi
Keyword(s):  
Panel Cointegration ◽  
Political Stability ◽  
Cointegration Test ◽  
Correction Model ◽  
Major Threat ◽  
Long Run ◽  
Cointegration Tests ◽  
Panel Cointegration Test ◽  
The Relationship ◽  
Control Of Corruption

<p>Corruption has been increasingly recognized as the major threat to economic development, political stability and peace. It is also acknowledged by international community as the breeding ground for terrorism. This paper examines the relationship between corruption and terrorism in the long run. Previous studies examining the link between these two phenomena used only time series cointegration tests. In this paper, we make use of a dataset for a panel of 123 developed and developing countries over the period 2003-2014. We use Pedroni’s residual-based panel cointegration test and the error correction model-based panel cointegration test developed by Westerlund. In order to obtain more robust results, we use two different measures of corruption which are Corruption Perceptions Index (CPI) and Worldwide Control of Corruption Indicator (CC). The results of both tests reject the null hypothesis of no cointegration. we conclude that corruption and terrorism converge. Our findings corroborate results of previous studies.</p>

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