ECONOMETRIC MODELLING OF THE CONSUMPTION OF ELECTRICITY IN GHANA WHEN STRUCTURAL BREAKS EXIST

2020 ◽  
Vol 7 (3) ◽  
pp. 205-220
Author(s):  
Samuel Asuamah Yeboah
Keyword(s):  
Structural Breaks ◽  
Trade Openness ◽  
Electricity Consumption ◽  
Annual Data ◽  
Explanatory Variables ◽  
Long Run ◽  
Development Indicator ◽  
Short Run ◽  
World Development Indicator ◽  
World Development

The research modelled electricity consumption for Ghana using annual data for the period 1971-2011, obtained from world development indicator. The research adopts the Gregory and Hansen model of cointegration for the estimation in the presence of structural breaks. The results reveal stable short run and long-run relationships among the explanatory variables and electricity consumption. The findings suggest that financial development explain electricity consumption in Ghana both in the short run and in the long run. The other variables (trade openness, price, and income) in the estimated model do not significantly explain electricity consumption. Therefore, they are not reliable policy variables in managing electricity consumption.

scholarly journals Long run relationship between economic growth, export, population and investment of Ethiopia

2018 ◽  
Vol 8 (2) ◽  
pp. 61-69
Author(s):  
M Leta ◽  
L Zemedkun
Keyword(s):  
Economic Growth ◽  
Granger Causality Test ◽  
Annual Data ◽  
Causality Test ◽  
Long Run ◽  
Augmented Dickey Fuller ◽  
Development Indicator ◽  
World Development Indicator ◽  
Adf Test ◽  
World Development

The objective of this study is to examine the long-run relationship between economic growth, population, export, and investment in Ethiopia using annual data collected from the World development indicator, and FAOSTAT for 18 years from 1990-2007 E.C. Co integration and Granger Causality test. Stationary properties of the data and the order of integration of the data were tested using the Augmented Dickey-Fuller (ADF) test. Variables were non-stationary at levels but stationary in first differences. The long-run effects of Population, export and investment on Economic growth indicated that these variables are positively related to economic growth and statistically significant at 1% level. Int. J. Agril. Res. Innov. & Tech. 8 (2): 61-69, December, 2018

scholarly journals Foreign Direct Investment and Trade Components in Context of Pakistan

2016 ◽  
Vol 12 (34) ◽  
pp. 384 ◽  
Author(s):  
Muhammad Akram Gilal ◽  
Khadim Hussain ◽  
Muhammad Ajmair ◽  
Sabahat Akram
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Trade Openness ◽  
Annual Data ◽  
Investment Liberalization ◽  
Long Run ◽  
Short Run ◽  
The Impact

Objective of this paper was to evaluate the impact of foreign direct investment (FDI) on trade components (exports and imports) of Pakistan using annual data from 1975 to 2013. Engle and Granger two step cointegration method was used for conducting the analysis. This method was adopted because all the variables of interest were non stationary in level and stationary at first difference. Results provide evidence of long run cointegrating relationship as well as short run relationship between FDI and trade components. A rise in FDI causes both exports and imports to increase. Based on these empirical findings, we strongly recommend Government of Pakistan to focus on the strategy of investment liberalization as well as trade openness.

scholarly journals Impact of Terrorism on Foreign Portfolio Investment in Pakistan

2015 ◽  
Vol 03 (02) ◽  
pp. 68-74
Author(s):  
Irfan Ullah ◽  
◽  
Muhammad Bilal Saeed
Keyword(s):  
Trade Openness ◽  
Unit Root Test ◽  
Annual Data ◽  
Portfolio Investment ◽  
Short Term ◽  
Foreign Portfolio Investment ◽  
Long Run ◽  
Negative Effect ◽  
Short Run ◽  
Push And Pull

This study explored the long and short run impact of Terrorism on Foreign Portfolio Investment (FPI) in Pakistan using annual data from 1995 to 2013. The stationarity of data is analyzed by using unit root test. The long run relationship is captured using Johansen and Juselius Cointegration test. The short term impact was tested through Vector Error Correction Model. The results reveal significant negative effect of Terrorism on FPI. The results best fit the concept of push and pull theory. The relation of FPI and market size is negative, and highly positive with Trade Openness and Real Interest Rate. There is also significant short term relationship between Terrorism and FPI. This study suggests that careful policies should be implemented for the purpose of minimizing terrorist activities in order to enhance FPI in Pakistan.

scholarly journals Environmental Degradation and Nigeria’s Macroeconomic Space

2017 ◽  
Vol 7 (1) ◽  
pp. 37 ◽  
Author(s):  
Ozoemena Stanley Nwodo ◽  
Jude Onyekachi Ozor ◽  
Udoka Ede Okekpa ◽  
Victoria Chinonso Agu
Keyword(s):  
Environmental Kuznets Curve ◽  
Trade Openness ◽  
Carbon Dioxide Emission ◽  
Secondary Data ◽  
Kuznets Curve ◽  
Macroeconomic Variables ◽  
Development Indicator ◽  
World Development Indicator ◽  
The Relationship ◽  
World Development

The fear for the future of human existence on this planet has made it necessary to pay special attention to studies that are related to the environment. In view of this, this study attempts to re-examine the environmental Kuznets curve in the midst of selected macroeconomic variables in Nigeria. The study estimated the relationship between carbon dioxide emission and some selected macroeconomic variables such as energy consumption (proxied by energy price); gross domestic product; population density; trade openness; ratio of manufacturing as a share of GDP and foreign direct investment using the ARDL model. With the adoption of secondary data for the period of 1981 to 2016 obtained from the world development indicator, the findings validated an N-shaped relationship between economic growth and the pollution in Nigeria in the midst of other Macroeconomic variables and based on this, it was recommended among others the building of a strong and effective environmental regulatory framework for the Nigerian economy and the adoption of clean technologies for the Nigerian economy

scholarly journals Evaluating the EKC Hypothesis for the BCIM-EC Member Countries under the Belt and Road Initiative

2020 ◽  
Vol 12 (4) ◽  
pp. 1478 ◽  
Author(s):  
Arifur Rahman ◽  
S. M. Woahid Murad ◽  
Fayyaz Ahmad ◽  
Xiaowen Wang
Keyword(s):  
Panel Data ◽  
Carbon Emission ◽  
Structural Breaks ◽  
Energy Use ◽  
Trade Openness ◽  
Gdp Per Capita ◽  
Ekc Hypothesis ◽  
Long Run ◽  
Short Run ◽  
Per Capita

This paper attempts to examine the environmental Kuznets curve (EKC) hypothesis for the BCIM-EC (Bangladesh–China–India–Myanmar economic corridor) member countries under the Belt and Road Initiative (BRI) of China. Both time series and panel data are covered, with respect to carbon dioxide (CO2) emissions, GDP per capita, energy use, and trade openness. For panel data analysis, GDP per capita and energy consumption have positive effects on CO2, while the effect of the quadratic term of GDP per capita is negative in the short-run. However, the short-run effects do not remain valid in the long-run, except for energy use. Therefore, the EKC hypothesis is only a short-run phenomenon in the case of the panel data framework. However, based on the Autoregressive Distributed Lag (ARDL) approach with and without structural breaks, the EKC hypothesis exists in India and China, while the EKC hypothesis holds in Bangladesh and Myanmar with regard to disregarding breaks within the short-run. The long-run estimates support the EKC hypothesis of considering and disregarding structural breaks for Bangladesh, China, and India. The findings of the Dumitrescu and Hurlin panel noncausality tests show that there is a unidirectional causality that runs from GDP per capita to carbon emission, squared GDP to carbon emission, and carbon emission to trade openness. Therefore, the BCIM-EC under the BRI should not only focus on connectivity and massive infrastructural development for securing consecutive economic growth among themselves, but also undertake a long-range policy to cope with environmental degradation and to ensure sustainable green infrastructure.

Financial development and income inequality in India: an application of ARDL approach

2015 ◽  
Vol 42 (1) ◽  
pp. 64-81 ◽  
Author(s):  
Madhu Sehrawat ◽  
A K Giri
Keyword(s):  
Income Inequality ◽  
Financial Development ◽  
Trade Openness ◽  
Development Economic ◽  
Annual Data ◽  
Content Type ◽  
Long Run ◽  
Integration Test ◽  
Short Run ◽  
The Relationship

Purpose – The purpose of this paper is to examine the relationship between financial development and income inequality in India using annual data from 1982-2012. Design/methodology/approach – Stationarity properties of the series are checked by using ADF, DF-GLS, KPSS and Ng- Perron unit root tests. The paper applied the auto regressive distributed lag (ARDL) bound testing approach to co-integration to examine the existence of long run relationship; and error correction mechanism for the short run dynamics. Findings – The co-integration test confirms a long run relationship between financial development and income inequality for India. The ARDL test results suggest that financial development, economic growth, inflation aggravates the income inequality in both long run and short run. However, trade openness reduces the gap between rich and poor in India. Research limitations/implications – The present recommend for appropriate economic and financial reforms focussing on financial inclusion to reduce income inequality in India. Originality/value – Till date, there is hardly any study that makes a clear comparison between market-based indicator and bank based indicator of financial development in India and those examining the relationship between finance and income inequality nexus. Further there is hardly any study to include gini coefficient as a proxy for inequality for India and apply ARDL techniques of co-integration, using the basic principles of GJ hypothesis and provide short run and long run dynamics for India. So the contribution of the paper is to fill these research gaps.

scholarly journals The nexus between tourism demand and output per capita with the relative importance of trade openness and financial development

2016 ◽  
Vol 23 (1) ◽  
pp. 168-186 ◽  
Author(s):  
Muhammad Shahbaz ◽  
Ronald Ravinesh Kumar ◽  
Stanislav Ivanov ◽  
Nanthakumar Loganathan
Keyword(s):  
Financial Development ◽  
Structural Breaks ◽  
Trade Openness ◽  
Tourism Demand ◽  
Distributed Lag ◽  
Long Run ◽  
Short Run ◽  
In Series ◽  
Per Capita ◽  
The Impact

This article revisits the tourism-growth nexus in Malaysia using time series quarterly data over the period 1975–2013. The authors examine the impact of tourism using two separate indicators – tourism receipts per capita and visitor arrivals per capita. Using the augmented Solow production function and the autoregressive distributed lag bounds procedure, they also incorporate trade openness and financial development and account for structural breaks in series. The results show the evidence of cointegration between the variables. Assessing the long-run results using both indicators of tourism demand, it is noted that the elasticity coefficient of tourism is 0.13 and 0.10 when considering visitor arrivals and tourism receipts (in per capita terms), respectively. Notably, the impact of tourism demand is marginally higher with visitor arrivals. The elasticity of trade openness is 0.19, that of financial development is 0.09 and that of capital share is 0.15. In the short run, the coefficient of tourism is marginally negative, and for financial development and trade openness, it is 0.01 and 0.18, respectively. The Granger causality tests show bidirectional causation between tourism and output per capita, financial development and tourism and trade openness and tourism demand, duly indicating the feedback or mutually reinforcing impact between the variables and providing evidence that tourism is central to enhancing the key sectors and the overall income level.

ELECTRICITY CONSUMPTION, TRADE OPENNESS AND ECONOMIC GROWTH IN DEVELOPING COUNTRIES: A DISAGGREGATED APPROACH

2021 ◽  
pp. 1-28
Author(s):  
KIZITO UYI EHIGIAMUSOE ◽  
SIKIRU JIMOH BABALOLA
Keyword(s):  
Economic Growth ◽  
Trade Openness ◽  
Electricity Consumption ◽  
Impulse Response Functions ◽  
African Countries ◽  
Cross Sectional ◽  
Long Run ◽  
Short Run ◽  
Cross Sectional Dependence ◽  
Trade And Growth

This study examines the relationship between electricity consumption, trade openness and economic growth in 25 African countries during 1980–2016. It disaggregates electricity into renewable and non-renewable and disaggregates trade into exports and imports. It employs cointegration and Granger causality techniques that enable us to determine both joint and individual causality, as well as account for individual heterogeneity and cross-sectional dependence. It also uses the variance decompositions (VDs) and impulse response functions (IRFs). This study shows a short-run and long-run joint causality from electricity and trade to growth, as well as a short-run and long-run joint causality from trade and growth to electricity. Besides, the Dumitrescu–Hurlin Granger non-causality technique shows a bidirectional causality between electricity and growth and between trade and growth but a unidirectional causality from electricity to trade. It also reveals the causal relationships from exports, imports, renewable and non-renewable electricity to growth. This study implies that electricity consumption and trade openness stimulate growth, while the latter also determines electricity consumption and trade openness. Based on the findings, we recommend some policy options.

scholarly journals Estimating Optimum Growth-Maximizing Public Debt Threshold for Nepal

2020 ◽  
Vol 32 (2) ◽  
pp. 1-28
Author(s):  
Gopal Prasad Bhatta ◽  
Anu Mishra
Keyword(s):  
Economic Growth ◽  
Public Debt ◽  
Trade Openness ◽  
Threshold Level ◽  
Debt Management ◽  
Annual Data ◽  
Bivariate Model ◽  
Long Run ◽  
Short Run ◽  
The Government

One of the common agenda of underdeveloped economies is to achieve a high and sustainable level of economic growth in the long run. Domestic and external borrowings are playing a crucial role in fulfilling the resource gap in the context of Nepal for a long period. A growing number of recent studies support the idea of a debt threshold level (turning point) above which debt starts reducing economic growth. This paper empirically investigates the relationship between economic growth and several other factors (investment, trade openness, population growth, domestic savings, and government debt) in the context of Nepal. The debt-growth relationship has been estimated by regression analysis and further explored the non-linear relationship between public debt and economic growth using time series annual data for the period of 1976-2019. The ARDL bound technique has been applied to estimate the short-run and the long run impact of debt on economic growth. Moreover, a quadratic bivariate model based on ARDL coefficients has been estimated to identify the growth maximizing level of debt. The estimated parameters confirm the optimum public debt to GDP ratio in the context of Nepal is 33 per cent. The policy implication of this finding for the Government of Nepal (GoN) is to ensure public debt management in line with the growth maximizing debt threshold. Further, a high level of trade deficits and government effectiveness in public sector management squeezes the fiscal space in utilizing adequate public debt in Nepal.

scholarly journals Agro-Allied Industry and its Relevance on Economic Performance: Evidence from Nigeria

2017 ◽  
Vol 3 (6) ◽  
pp. 25
Author(s):  
Gylych Jelilov ◽  
Kashim Andrew Bahago
Keyword(s):  
Time Series Data ◽  
Value Added ◽  
Secondary Data ◽  
Series Data ◽  
Poverty Level ◽  
Factor Endowments ◽  
Long Run ◽  
Development Indicator ◽  
World Development Indicator ◽  
World Development

<p>Nigeria is a nation with various factor endowments, but yet there is still the threat of hunger, extreme poverty and the need to combat this menace calls for urgent attention. Therefore, this study is to focus on the analysis of agro-allied industry and the possibility of reducing the poverty level of the Nigerian populace and enhance a better economic condition. The data for this study is a yearly range from 1986 – 2015. The time series data used for this study is secondary data obtained from world development indicator (WDI). Using the Augmented Dicky-Fuller to check for stationarity of variables after which I will conduct the cointegration test to check for the long-run relationship between the variables. Therefore the findings from various econometrics techniques employed for this study show that there is a long-run relationship between agricultural value-added and gross domestic product.</p>

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