scholarly journals An Asymmetric Investigation of Remittance and Trade Openness Impact on Inequality: Evidence From Selected South Asian Countries

2021 ◽  
Vol 12 ◽  
Author(s):  
Liu Fang ◽  
Md. Qamruzzaman
Keyword(s):  
South Asian ◽  
Unit Root ◽  
Trade Openness ◽  
Wald Test ◽  
Ordinary Least Squares ◽  
Linear Process ◽  
Unit Root Tests ◽  
Asian Countries ◽  
Non Linear ◽  
Bds Test

This study’s motivation is to explore the relationship pattern between remittance, trade openness, and inequality of selected south Asian countries for the 1976–2018 period. The study performed non-linear tests, including unit root tests, non-linearity applying ordinary least squares (OLS) and BDS tests, non-linear autoregressive distributed lagged (NARDL) tests, and asymmetry causality tests to assess their association. Study findings with non-linear unit root tests suggest that the research variables follow the non-linear process of becoming stationary from non-stationary. The non-linear OLS and BDS test results confirm the existence of non-linearity among research variables, implying rejection of the null hypothesis of “no non-linearity.” Furthermore, the results of the Wald test in NARDL confirm the availability of asymmetric links among variables. Besides this, the results of NARDL confirm the long-run asymmetric relationship between remittances, trade openness, and inequality in all sample nations. Findings suggest that both positive and negative shocks in remittances and trade openness is critical to either instituting or vexing the present state of inequality in the economy in the long term. In the directional relationship with asymmetry causality, the study shows that the feedback hypothesis holds to explain the asymmetric causal effects that are positive shocks in remittances and trade openness toward inequality.

An Empirical Insight into the Financial Globalization–Growth Nexus via Trade Openness: Evidence from Select South Asian Countries

2020 ◽  
pp. 097215091989384 ◽  
Author(s):  
Malayaranjan Sahoo ◽  
Narayan Sethi
Keyword(s):  
Economic Growth ◽  
South Asian ◽  
Open Economy ◽  
Trade Openness ◽  
Financial System ◽  
Ordinary Least Squares ◽  
Least Square ◽  
Financial Globalization ◽  
Asian Countries ◽  
Long Run

This article explores the relationship among financial globalization, trade openness and economic growth for the select South Asian countries, that is, Bangladesh, Bhutan, India, Pakistan and Sri Lanka over the time period 1990–2017. We have applied panel unit root test like that of Im–Pesaran–Shin (IPS) and Levin–Lin–Chu (LLC) to check the stationarity of the variables. Kao, Fisher and Pedroni’s residual cointegration test has been considered to find out the long-run relationship among the variables. The cointegration results confirm that there exists a long-run relationship among the considered variables. The pairwise Granger Causality test confirms that there is a unidirectional causal relationship between growth and financial globalization, growth and foreign direct investment (FDI) and trade openness and financial globalization. Further, full modified ordinary least square (FMOLS) and dynamic ordinary least squares (DOLS) methods are used to find out the long-run dynamic relation between the variables, and the results show that financial globalization and trade openness have a positive and significant influence on economic growth. Our empirical findings suggest that South Asian countries should ensure that necessary policies require to be implemented if they need to partake in the gains from trade openness and capital flows, which would lead to stimulate the economic performance of the country. Also, governments should focus more on the enhancement of domestic financial system. In addition, an open economy requires global coordination to build a strong international financial system to prevent and manage financial crises or potential shock.

ARE SHOCKS TO TOURIST ARRIVALS IN MOROCCO PERMANENT OR TEMPORARY?

2021 ◽  
Author(s):  
Younesse El Menyari
Keyword(s):  
Unit Root ◽  
Unit Root Tests ◽  
External Shocks ◽  
Tourism Sector ◽  
International Tourist ◽  
Non Linear ◽  
Source Countries ◽  
Linearity Test ◽  
Tourism Arrivals

The main goal of this paper is to examine whether shocks had a permanent or temporary effect on international tourist arrivals in Morocco for its top 8 source countries. For this purpose, we apply the Harvey, Leybourne and Xiao (2008) linearity test and the linear tests and non-linear unit root (Elliott, Rothenberg, & Stock, 1996; Hepsag, 2019; Kruse, 2011; Lee & Strazicich, 2004). The results show that the series with linear characteristics are tourist arrivals from UK and USA and those with non-linear characteristics are tourist arrivals from Belgium, France, Spain, Italy, Netherlands and Germany. The unit root tests reject the null hypothesis of a non-stationarity in tourist arrivals from all countries except the Germany. The implication of these findings is that the shocks had a temporary effect on tourism arrivals from 7 markets to Morocco. Therefore, Morocco's tourism sector is a sustainable industry as external shocks have not had long term disruption in the flow of tourist arrivals.

The short-run and long-run dynamics among FDI, trade openness and economic growth: using a bootstrap ARDL test for co-integration in selected South Asian countries

2020 ◽  
Vol 9 (2) ◽  
pp. 279-295 ◽  
Author(s):  
Hummera Saleem ◽  
Malik Shahzad Shabbir ◽  
Muhammad Bilal khan
Keyword(s):  
Economic Growth ◽  
Sri Lanka ◽  
Causal Relationship ◽  
South Asian ◽  
Trade Openness ◽  
Asian Countries ◽  
Content Type ◽  
Long Run ◽  
Short Run ◽  
Auto Regressive

PurposeThe purpose of this study is to analyze the dynamic causal relationship between foreign direct investment (FDI), gross domestic product (GDP) and trade openness (TO) on a set of five selected South Asian countries.Design/methodology/approachThis study used newly developed bootstrap auto regressive distributed lags (ARDL) cointegration test to examine the long-run relationship among FDI, GDP and TO for selected South Asian countries for 1975–2016.FindingsThe economic growth (EG) is significantly related to TO for Bangladesh, India and Sri Lanka and the expansion of TO is crucial for growth in these countries. The results show that all countries (except Bangladesh) found the existence of long-run cointegration between FDI, GDP and TO, whereas FDI is a dependent variable. These results concluded that FDI and TO are contributing to EG in these selected countries.Originality/valueThis study is one of the first attempts to investigate the causal relationship and address the short and long dynamic among FDI, GDP and TO regarding five south Asian countries such as Bangladesh, India, Nepal, Pakistan and Sri Lanka.

Investigation of Socioeconomic Determinants on Child Death in South Asian Countries: A Panel Cointegration Analysis

2020 ◽  
pp. 003022282091502
Author(s):  
Shazia Kousar ◽  
Aiza Shabbir ◽  
Rukia Shafqat
Keyword(s):  
Income Inequality ◽  
Socioeconomic Factors ◽  
Least Squares ◽  
Child Mortality ◽  
South Asian ◽  
Health Expenditure ◽  
Ordinary Least Squares ◽  
Asian Countries ◽  
Long Run ◽  
The Relationship

This article is aimed to examine the relationship between socioeconomic factors and child mortality in South Asia because the relationship between child mortality and socioeconomic factors cannot be overlooked for better progress. Panel data were obtained from (World Development Indicators) and (Human Development Index) for the period 1990–2017. The data were quantitative. Levin, Lin, and Chu and I’m, Pesaran, and Shin test were used to check the stationarity of data. A cointegration test was applied to check the long-run association. Granger causality test was used to determine the direction of the relationship. Fully modified ordinary least squares and dynamic ordinary least squares techniques were used to examine the long-run and short-run impact of socioeconomic determinants on child mortality. The findings from this study showed the significant impact of education, unemployment, and health expenditure, access to improved water and sanitation facilities, and income inequality on child mortality. Overall results showed that there is a negative association between education and child mortality, access to improved water and access to sanitation facilities and child mortality, and health expenditure and child mortality, but there is a positive association between unemployment and income inequality with child mortality. The rate of child mortality is still very alarming in South Asian countries.

scholarly journals ON AUGMENTED HEGY TESTS FOR SEASONAL UNIT ROOTS

2012 ◽  
Vol 28 (5) ◽  
pp. 1121-1143 ◽  
Author(s):  
Tomás del Barrio Castro ◽  
Denise R. Osborn ◽  
A.M. Robert Taylor
Keyword(s):  
Unit Root ◽  
Unit Roots ◽  
Linear Process ◽  
Unit Root Tests ◽  
Nuisance Parameters ◽  
Martingale Difference ◽  
Linear Processes ◽  
Seasonal Unit Roots ◽  
Null Distributions ◽  
Augmented Dickey Fuller

In this paper we extend the large-sample results provided for the augmented Dickey–Fuller test by Said and Dickey (1984, Biometrika 71, 599–607) and Chang and Park (2002, Econometric Reviews 21, 431–447) to the case of the augmented seasonal unit root tests of Hylleberg, Engle, Granger, and Yoo (1990, Journal of Econometrics 44, 215–238), inter alia. Our analysis is performed under the same conditions on the innovations as in Chang and Park (2002), thereby allowing for general linear processes driven by (possibly conditionally heteroskedastic) martingale difference innovations. We show that the limiting null distributions of the t-statistics for unit roots at the zero and Nyquist frequencies and joint F-type statistics are pivotal, whereas those of the t-statistics at the harmonic seasonal frequencies depend on nuisance parameters that derive from the lag parameters characterizing the linear process. Moreover, the rates on the lag truncation required for these results to hold are shown to coincide with the corresponding rates given in Chang and Park (2002); in particular, an o(T1/2) rate is shown to be sufficient.

scholarly journals Investment and Saving Nexus in Asian Countries: Panel Cointegration and Causality

2013 ◽  
Vol 18 ◽  
pp. 1-7 ◽  
Author(s):  
Mohsen Mehrara ◽  
Maysam Musai
Keyword(s):  
Unit Root ◽  
Panel Cointegration ◽  
Cointegration Analysis ◽  
Unit Root Tests ◽  
Domestic Investment ◽  
Panel Unit Root Tests ◽  
Asian Countries ◽  
Panel Unit Root ◽  
Long Run ◽  
Saving Rates

This paper investigates the causal relationship between gross domestic investment (INV) and saving rates for 40 Asian countries by using panel unit root tests and panel cointegration analysis for the period 1970-2010. The results indicate no long run relationship as well as no causalities between these two variables in these countries. The findings are attributed to non stationary deficits or surpluses in current accounts.

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