scholarly journals Energy Diversification and Economic Development in Emergent Countries: Evidence From Fourier Function-Driven Bootstrap Panel Causality Test

2021 ◽  
Vol 9 ◽  
Author(s):  
Veli Yilanci ◽  
Ilham Haouas ◽  
Onder Ozgur ◽  
Samuel Asumadu Sarkodie
Keyword(s):  
Economic Development ◽  
Structural Breaks ◽  
Developing Economies ◽  
The Philippines ◽  
Annual Data ◽  
Wealth Creation ◽  
Causality Test ◽  
Panel Causality ◽  
Emerging Nations ◽  
Fourier Function

Energy is a crucial development indicator of production, consumption, and nation-building. However, energy diversification highlighting renewables remains salient in economic development across developing economies. This study explores the economic impact of renewables (RE) and fossil fuel (NRE) utilization in 17 emerging nations. We use annual data with timeframe between 1980 and 2016 and propose a bootstrap panel causality approach with a Fourier function. This allows the examination of multiple structural breaks, cross-section dependence, and heterogeneity across countries. We validate four main hypotheses on the causal links attached to the energy consumption (EC)-growth nexus namely neutrality, conservation, growth, and feedback hypotheses. The findings reveal a causal relationship running from RE to GDP for Brazil, Egypt, Indonesia, Korea, Pakistan, and the Philippines, confirming the growth hypothesis. Besides, the results validate the conservation hypothesis with causality from GDP to RE for China, Colombia, Egypt, Greece, India, Korea, South Africa, and Turkey. We identify causality from NRE to GDP for Pakistan, Mexico, Malaysia, Korea, India, Greece, Egypt, and Brazil; and from GDP to NRE for Thailand, Peru, Malaysia, India, Greece, Egypt, and Colombia. We demonstrate that wealth creation can be achieved through energy diversification rather than relying solely on conventional energy sources.

Foreign Direct Investment and Trade Related Intellectual Property Rights (TRIPS): The Case of Latin American & Caribbean Developing Economies

2018 ◽  
pp. 1-17
Author(s):  
Mumtaz Hussain Shah
Keyword(s):  
Economic Development ◽  
Intellectual Property ◽  
Property Rights ◽  
Intellectual Property Rights ◽  
Latin American ◽  
Developing Economies ◽  
Intellectual Property Right ◽  
Market Size ◽  
Annual Data ◽  
Macroeconomic Stability

The growing share of knowledge-intensive products in international trade and the increasing sensitivity of multinational firms to intellectual property theft make it imperative to analyse the effect of IPR promulgation on their FDI decision. In this perspective the current article gauge the importance of Trade Related Intellectual Property Rights (TRIPS) agreement under World Trade Organisation (WTO) in increasing a Latin American & Caribbean (LAC) developing economy’s appeal for investors from abroad. Infrastructure and skilled labour availability, market size, macroeconomic stability, economic development, and trade liberalization are also considered. Time-invariant phenomena such as access to the sea, regional affiliations/proximities, income groupings and ability to speak one of the international languages, though desirable were not done because fixed effect panel estimation technique does not permit the use of dummy variables. Due to the 2008-2009 recession in the developed economies, the available investment funds withered, making the investors’ sceptic apropos the safety of their tangible and intangible property, especially in the developing world, causing a decrease in FDI to these nations in general. However, LAC countries were somewhat resilient and received a steadily increasing flow of foreign investment. Thus, it demands to analyse the factors that overcame the overseas investors’ scepticism and prompted them to invest in the LAC region. By utilizing annual data for 28 years that is 1989-2016 from 24 LAC developing nations it is found that infrastructure and human capital availability, macroeconomic stability, economic development, strengthening and worldwide harmonization of intellectual property right standards through TRIPS positively effects the overseas investor's investment decision. The host population used to measure market size is found to be insignificant when tested with other conventional FDI location pull factors. Similarly, liberalization, consistent with horizontal FDI theory, exerts a significant negative effect on inward FDI.

Conflict Risk and Defense Expenses and Their Impact on the Economic Growth

2021 ◽  
pp. 646-668
Author(s):  
Hasan Dinçer ◽  
Ümit Hacıoğlu ◽  
Serhat Yüksel
Keyword(s):  
Economic Growth ◽  
Emerging Countries ◽  
Annual Data ◽  
Negative Effects ◽  
Causality Test ◽  
Panel Causality ◽  
High Conflict ◽  
Emerging Country ◽  
Causality Relationship ◽  
Conflict Risk

The main purpose of this chapter is to identify the effects of conflict risk and defense expenses on economic growth. Within this scope, annual data of 17 emerging economies for the period between 1989 and 2014 were analyzed. In addition to this situation, Dumitrescu Hurlin panel causality test was taken into consideration in order to reach the objective. As a result of the analysis, it was determined that there is a causality relationship between conflict and defense expenses for these countries. This situation shows that emerging countries, which have high conflict risk, also increase defense expenses so as to minimize the negative effects of these conflicts. Additionally, it was also identified that economic growth is a significant reason of high defense expenses. In other words, it can be said that when the economy of an emerging country is developed, it gives more importance to defense expenses in order to take action for this conflict.

scholarly journals Causal Relationship between Foreign Direct Investment and Economic Growth in Nigeria: 1970-2013

2015 ◽  
Vol 7 (11) ◽  
pp. 230 ◽  
Author(s):  
Uwazie I. U. ◽  
Igwemma A. A. ◽  
Nnabu Bernard Eze
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Unit Root ◽  
Direct Investment ◽  
Developing Economies ◽  
Unit Root Test ◽  
Annual Data ◽  
Policy Reforms ◽  
Causality Test ◽  
Long Run

Foreign direct investment is presumed to play immense role in economic growth in both developed and developing economies. This assumption has motivated the army of studies to actually determine the nexus between foreign direct investment and economic growth in Nigeria. But these studies were not unified on the direction of the causation, hence the need for the study. To effectively analyze the result, the study employs vector error correction model method of causality to analyze the annual data for the periods of 1970 to 2013. The Augmented Dickey-Fuller (ADF) unit root test show presence of unit root at level but stationary after first difference. The Johansen cointegration test confirms that the variables are cointegrated while the granger causality test affirms that foreign direct investment and economic growth reinforce each other in the short run in Nigeria. Also, it is reported that foreign direct investment granger cause economic growth both in the short and long run in Nigeria. Based on these findings, the study advocates the adoption of aggressive policy reforms to boost investors’ confidence and promotion of qualitative human capital development to lure FDI into the country. It also suggests the introduction of selective openness to allow only the inflow of FDI that have the capacity to spillover to the economy. These will attract FDI and boost economic growth in Nigeria.

scholarly journals Identifying Causality Relationship between Energy Consumption and Economic Growth in Developed Countries

2017 ◽  
Vol 1 (2) ◽  
pp. 71 ◽  
Author(s):  
Hasan Dinçer ◽  
Serhat Yüksel ◽  
Zafer Adalı
Keyword(s):  
Economic Growth ◽  
Economic Development ◽  
Energy Consumption ◽  
Developed Countries ◽  
Annual Data ◽  
Causality Analysis ◽  
Panel Causality ◽  
Bidirectional Relationship ◽  
Causality Relationship ◽  
Economic Improvement

The main purpose of this study is to evaluate the causality relationship between energy consumption and economic growth for developed countries. Within this context, annual data of 22 developed countries was examined by using Dumitrescu Hurlin panel causality analysis. As a result, it was determined that that there is a bidirectional relationship between energy consumption and economic improvement for developed countries. This condition provides two different results. Firstly, energy consumption has an influence on economic development for these countries. While considering this result, it can be said that any limitation in energy consumption will restrict economic growth. Moreover, it was also concluded that level of economic growth is the main reason of energy consumption for developed countries. In other words, developed countries tend to have more energy consumption when their economies are growing.

scholarly journals Tourism and Economic Growth in G10 Countries

Tourism ◽  
2021 ◽  
Vol 69 (1) ◽  
pp. 112-126
Author(s):  
Uğur Korkut Pata
Keyword(s):  
Economic Growth ◽  
Sustainable Development ◽  
Annual Data ◽  
Negative Events ◽  
Economic Activities ◽  
Causality Test ◽  
Panel Causality ◽  
Tourism Sector ◽  
Causality Relationship ◽  
The Relationship

This study proposes an asymmetric panel causality test to analyze the relationship between tourist arrivals and economic growth. To this end, annual data over the period 1995–2017 are examined for the G10 countries. The findings demonstrate that the relationship between tourism and economic growth varies according to positive and negative shocks. In terms of positive shocks, tourism development causes economic growth. The study also finds a bidirectional causality relationship between the negative shocks of the variables. Therefore, positive developments in tourism contribute to economic growth, while negative events in tourism impede growth. In sum, tourism is strongly linked to economic activities in G10 countries, and thus policymakers should attach importance to the tourism sector in order to support sustainable development.

scholarly journals Impact of Annual Budgets in Economic Development of Nepal: An Econometric Analysis

2016 ◽  
Vol 11 ◽  
pp. 1
Author(s):  
Om Sharma
Keyword(s):  
Economic Development ◽  
Constant Term ◽  
Equation System ◽  
Single Equation ◽  
Annual Data ◽  
Causality Test ◽  
Development Expenditure ◽  
Log Linear ◽  
The Impact

<p>This paper deals with the impact of the annual budgets on the economic development process of Nepal. The epoch-making macro economic variables are introduced through the application of the econometric models of various kinds, such as linear, log-linear in single equation system, multiple forms and the Granger Causality test (1969) by applying the annual data for the period of 1974/75 to 2006/07 in current as well as constant term. The high average elasticity coefficient of manufactured GDP, GDP, GNP and PCI respectively indicate that development expenditure is highly significant in determining development. A nominal role of internal borrowing and internal revenue in the economy and the excessive dependence on foreign aid has led the country for heavy debt service obligations every years forcing for additional tax burden.</p><p><strong>Economic Literature,</strong> Vol. XI (1-14), June 2013</p>

scholarly journals Stochastic Dynamics of the COVID-19 Case-Fatality Ratios in Indonesia, Malaysia, and the Philippines: Economic Implications for the Post-COVID-19 Era

2021 ◽  
Vol 9 ◽  
Author(s):  
Zili Shi ◽  
Hua Zhang ◽  
Ren Zhang ◽  
Lili Zhu
Keyword(s):  
Unit Root ◽  
Structural Breaks ◽  
Stochastic Dynamics ◽  
Developing Economies ◽  
Structural Break ◽  
Case Fatality ◽  
The Philippines ◽  
Economic Implications ◽  
Daily Frequency ◽  
Permanent Effect

This paper analyses the stochastic dynamics of the COVID-19 Case-Fatality Ratios (CFR) in three developing economies in East Asia: Indonesia, Malaysia, and the Philippines. The sample covers the daily frequency data from April 28, 2020, to June 29, 2021. For this purpose, we utilize two unit root tests, which consider one structural break and two structural breaks. The findings reveal that the CFR follows a unit root process in Indonesia and the Philippines. However, the CFR is stationary in Malaysia. This evidence indicates that the COVID-19 has a permanent effect in Indonesia and the Philippines but temporary in Malaysia. The paper also discusses the potential economic implications of these results for the post-COVID-19 era in the related developing economies.

Relationship Between Non-Performing Loans, Industry, and Economic Growth of the African Economies and Policy Recommendations for Global Growth

2018 ◽  
pp. 203-228 ◽  
Author(s):  
Hasan Dinçer ◽  
Serhat Yuksel ◽  
Zafer Adalı
Keyword(s):  
Economic Growth ◽  
Living Standards ◽  
Annual Data ◽  
Policy Recommendations ◽  
African Countries ◽  
Causality Test ◽  
Panel Causality ◽  
The People ◽  
Causality Relationship ◽  
Global Growth

The main purpose of this chapter is to evaluate the causality relationship between non-performing loans, industry volume, and economic growth and to provide some policy recommendations for global growth. Within this context, annual data of 16 African countries for the periods between 2001 and 2015 was taken into the consideration. Additionally, Dumitrescu Hurlin panel causality test was used to reach the objective. According to the result of this analysis, it was identified that there is a causality relationship between industry volume and economic growth. In addition to this situation, it was also defined that a decrease in economic growth is the main cause of the non-performing loans ratio in African countries. This chapter makes an important contribution to the literature. While considering these results, it can be said that to increase global trade economies of the countries should be improved and banking sectors should work more effectively. As a result, it will be possible to increase the living standards of the people and provide global growth.

scholarly journals Exchange Rate Movement and Foreign Direct Investment in Asean Economies

2014 ◽  
Vol 2014 ◽  
pp. 1-10 ◽  
Author(s):  
Jaratin Lily ◽  
Mori Kogid ◽  
Dullah Mulok ◽  
Lim Thien Sang ◽  
Rozilee Asid
Keyword(s):  
Foreign Direct Investment ◽  
Exchange Rate ◽  
Direct Investment ◽  
Positive Impact ◽  
World Market ◽  
The Philippines ◽  
Annual Data ◽  
Causality Test ◽  
Long Run ◽  
The Exchange Rate

The inflows of foreign direct investment (FDI) are important for a country's economic development, but the world market for FDI has become more competitive. This paper empirically analyses the exchange rate movements and foreign direct investment (FDI) relationship using annual data on ASEAN economies, that is, Malaysia, the Philippines, Thailand, and Singapore. By employing ARDL bounds test approach, the empirical results show the existence of significant long-run cointegration between exchange rate and FDI for the case of Singapore, Malaysia, and the Philippines with all countries recording negative coefficient implying that the appreciation of Singapore dollar, Malaysian ringgit, and the Philippine peso has a positive impact on FDI inflows. Using the ECM based ARDL approach for causality test, both Singapore and the Philippines show long-run bidirectional causality between exchange rate and FDI whereas long-run unidirectional causality running from the exchange rate to FDI in Malaysia. Furthermore, this study also found that short-run unidirectional causality running from the exchange rate to FDI exists in Singapore.

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