scholarly journals Further Evidence on Import Demand Function and Income Inequality

Economies ◽  
2020 ◽  
Vol 8 (4) ◽  
pp. 91
Author(s):  
Ioanna Konstantakopoulou
Keyword(s):  
Income Inequality ◽  
Demand Function ◽  
Import Demand ◽  
One Dimension ◽  
Var Model ◽  
Cross Sectional ◽  
Stochastic Trends ◽  
Advanced Economies ◽  
Cross Sectional Dependence ◽  
The Impact

In advanced economies, rising inequality has become a significant economic issue. Our paper examines one dimension of the impact of inequality. This study employs panel estimators that tackle heterogeneity and cross-sectional dependence to estimate the impact of income inequality on import demand. In addition, we use a Bayesian approach to the cointegrated VAR model as well as a model that allows for stochastic trends and cross-sectional dependence. Annual panel data for the period from 1995 to 2016 on OECD countries are used. The empirical results show that inequality has a positive and significant effect on import demand. The estimation also yields some other expected results, viz. that the income and price elasticity of import demand function are positive and negative, respectively.

scholarly journals The Impact of Income Inequality on Environmental Quality: A Sectoral-Level Analysis

2021 ◽  
Author(s):  
Sedat Alataş ◽  
Tuğba Akın
Keyword(s):  
Income Inequality ◽  
Carbon Emissions ◽  
Environmental Kuznets Curve ◽  
Kuznets Curve ◽  
Cross Sectional ◽  
Cointegration Tests ◽  
Cross Sectional Dependence ◽  
The Impact ◽  
The Relationship ◽  
Level Analysis

Abstract There is a growing literature on the relationship between income inequality and emissions. However, these studies ignore the sectoral level differences in carbon emissions. We argue that the environmental effect of inequality might vary at the sectoral level. Our main purpose is to contribute to this growing literature on the inequality-emissions nexus by considering sectoral-level differences. For that purpose, we focus on five different sectors: power industry, buildings, transport, other industrial combustion, and other sectors. To specify our model, we augment the environmental Kuznets curve framework with income inequality by controlling the effect of globalization and urbanization. Our country sample consists of 28 OECD economies for the period between 1990 and 2018. Methodologically, we apply the second-generation panel unit root, cointegration tests, and estimators, which produce robust results against the cross-sectional dependence. Our findings reveal that not only income but also income inequality is a crucial factor in explaining changes in sectoral emissions. While rising income inequality increases carbon emissions from the power and building sectors, this finding turns out to be negative for the transport, other industrial combustion, and other sectors. Our results suggest that policies aimed at reducing carbon emissions should be designed at the sectoral level.

Impact of Financial Risks on the Profitability of Systematically Important Banks in Nigeria

Paradigm ◽  
2019 ◽  
Vol 23 (2) ◽  
pp. 117-129
Author(s):  
Olufemi Adewale Aluko ◽  
Funso Tajudeen Kolapo ◽  
Patrick Olufemi Adeyeye ◽  
Patrick Olajide Oladele
Keyword(s):  
Interest Rate ◽  
Fixed Effects ◽  
Positive Impact ◽  
Financial Risks ◽  
Cross Sectional ◽  
Bank Profitability ◽  
Alternative Measures ◽  
Cross Sectional Dependence ◽  
Fixed Effects Regression ◽  
The Impact

This study examines the impact of financial risks in form of credit, interest rate and liquidity risk on the profitability of systematically important banks in Nigeria over the period from 2010 to 2016. The fixed effects regression model is estimated with Driscoll–Kraay standard errors in order to produce results that are robust to heteroscedaticity, autocorrelation, cross-sectional dependence and temporal dependence. After controlling for some bank-specific, industry-specific, macroeconomic and institutional factors, the empirical results show that credit and liquidity risks have a positive impact on bank profitability while interest rate does not have an impact. The results are robust to alternative measures of profitability.

scholarly journals IMPACT OF MATERNAL MORTALITY ON SUSTAINABLE DEVELOPMENT IN THE SELECTED WEST AFRICAN COUNTRIES

2019 ◽  
Vol 17 (31) ◽  
Author(s):  
Joseph Afolabi Ibikunle
Keyword(s):  
Health Care ◽  
Sustainable Development ◽  
Maternal Mortality ◽  
Maternal Mortality Ratio ◽  
West African ◽  
African Countries ◽  
The West ◽  
Cross Sectional ◽  
Cross Sectional Dependence ◽  
The Impact

Over half a million females die every year as a result of pregnancy and birth complications. The vast majority of these fatalities can be avoided. SDG 3.1’s objective is to reduce the global maternal mortality ratio by 2030 to below 70 per 100,000 live births. Despite a number of policies put in place maternal mortality in Africa remains unacceptably high. This study investigates the impact of maternal mortal- ity on sustainable development in 9 selected West African countries for the period from 1990 to 2015. Data used were adjusted net savings, maternal mortality, consumer price index, per-capita income and financial development. The second-generation econometric methods were employed: cross sectional dependence, slope homogeneity, Westerlund cointegration, Eberhadt and Teal AMG regression, and the Emirmahmutoglu and Kose bootstrap Granger causality test. Findings confirm the following: First, cross-sectional dependence and slope heterogeneity exist among the West African countries. Second, there is a long run relationship between maternal mortality and sustainable development. Third, maternal mortality impacted negatively and signifi- cantly on sustainable development. Fourth, the direction of causality varies across countries between maternal mor- tality and sustainable development. Lastly, causality runs from maternal mortality to sustainable development when analyzing the causal relationship among all countries. The findings suggest that the West African government needs to commit more funding to the health care sector and ensure access to free healthcare service to pregnant women or at low cost with quality and effective health care services if the countries must attain sustainable development by 2030.

Financial integration and macroeconomic volatility: evidence from Asia

2019 ◽  
Vol 35 (2) ◽  
pp. 94-112
Author(s):  
Inder Sekhar Yadav ◽  
Phanindra Goyari ◽  
Ram Kumar Mishra
Keyword(s):  
Financial Integration ◽  
Trade Openness ◽  
Generalized Method Of Moments ◽  
Cross Sectional ◽  
Content Type ◽  
Macroeconomic Volatility ◽  
Advanced Economies ◽  
Asian Economies ◽  
The Impact ◽  
Over Time

Purpose The purpose of this paper is to empirically examine the impact of financial integration on macroeconomic volatility for developing and emerging economies of Asia. Design/methodology/approach The effects of financial integration and dynamics of macroeconomic volatility over time and across different groups of Asian economies vis-à-vis advanced economies are investigated using four different variables such as consumption, output, income and the ratio of consumption to income. Further, an empirical link between the degree of international financial integration and macroeconomic volatility for Asian economies is econometrically investigated using generalized method of moments (GMM) system one-step estimator. Findings Macroeconomic volatilities of per capita output and consumption growth tend to be lower for advanced economies compared to Asian economies. The computed cross-sectional median of the volatility of consumption, output, income and the ratio of consumption volatility to income suggested that the volatility of advanced economies is lower compared to all the regions of Asia. GMM results suggested that the financial openness, trade openness and broad money are negatively and significantly associated with macroeconomic volatility whereas inflation is positively and significantly associated with macroeconomic volatility but the magnitude of trade openness is found to be negligible. Research limitations/implications The present study has not included the effects of other country-specific variables (such as fiscal policy volatility) and other external factors to understand macroeconomic volatility. Practical implications High integration of economies promote economic growth, reduce macroeconomic volatility and reduce vulnerability to external shocks. This implies that policy makers should thrive to reform and create institutional infrastructure to deepen the integration. Originality/value The paper is an important empirical contribution toward examining the effects of financial integration on dynamics of macroeconomic volatility for a large number of Asian developing and emerging economics over time and across different groups using recent data and latest analytical framework and techniques.

scholarly journals ‘Don’t play if you can’t win’: does economic inequality undermine political equality?

2019 ◽  
Vol 11 (3) ◽  
pp. 395-413 ◽  
Author(s):  
Armin Schäfer ◽  
Hanna Schwander
Keyword(s):  
Income Inequality ◽  
Voter Turnout ◽  
Economic Inequality ◽  
Political Equality ◽  
Local Data ◽  
Cross Sectional ◽  
Time Period ◽  
The Impact ◽  
The Relationship ◽  
Selection Of

AbstractIn this paper, we investigate whether income inequality negatively affects voter turnout. Despite some progress, the answer to this question is still debated due to methodological disagreements and differences in the selection of countries and time periods. We contribute to this debate by triangulating data and methods. More specifically, we use three kinds of data to resolve the question: first, we use cross-sectional aggregate data of 21 OECD countries in the time period from 1980 to 2014 to study the relationship between inequality and electoral participation. Second, we zoom in on the German case and examine local data from 402 administrative districts between 1998 and 2017. Focusing on within-country variation eliminates differences that are linked to features of the political system. Finally, we combine survey data with macro-data to investigate the impact of inequality on individual voting. This final step also allows us to test whether the effect of income inequality on voter turnout differs across income groups. Taken together, we offer the most comprehensive analysis of the impact of social inequality on political inequality to date. We corroborate accounts that argue that economic inequality exacerbates participatory inequality.

THE DRIVERS OF ENVIRONMENTAL DEGRADATION IN ASEAN+China: DO FINANCIAL DEVELOPMENT AND URBANIZATION HAVE ANY MODERATING EFFECT?

2020 ◽  
pp. 2050024 ◽  
Author(s):  
KIZITO UYI EHIGIAMUSOE
Keyword(s):  
Renewable Energy ◽  
Energy Consumption ◽  
Financial Development ◽  
Environmental Degradation ◽  
Trade Openness ◽  
High Carbon ◽  
Cross Sectional ◽  
Cross Sectional Dependence ◽  
Growth Energy ◽  
The Impact

This study examines the drivers of environmental degradation in [Formula: see text]. It focusses on three unresolved questions: (i) Does the inclusion of China in ASEAN panel aggravate environmental degradation, given that China is a high carbon emissions country? (ii) Does financial development moderate the impact of energy consumption on environmental degradation in ASEAN? (iii) Does urbanization moderate the impact of energy consumption on environmental degradation in ASEAN? It employs empirical strategies that account for heterogeneity, endogeneity and cross-sectional dependence. The results show that economic growth, energy consumption and non-renewable energy aggravate environmental degradation, whereas renewable energy, foreign direct investment and trade openness mitigate it. The inclusion of China in ASEAN panel weakens the EKC hypothesis. Financial development favorably moderates the effect of energy consumption on environmental degradation in ASEAN, but adversely moderates the effect in [Formula: see text]. Urbanization adversely moderates the impact of energy consumption on environmental degradation in both panels. Hence, efforts to address environmental degradation should consider these different drivers.

scholarly journals Public, Private or Universities?

2019 ◽  
Vol 70 (2) ◽  
pp. 276-300
Author(s):  
Caner Demir
Keyword(s):  
Higher Education ◽  
Panel Data Analysis ◽  
Oecd Countries ◽  
The Other ◽  
Business Sector ◽  
Cross Sectional ◽  
Cross Sectional Dependence ◽  
Econometric Tests ◽  
The Government ◽  
The Impact

The aim of this study is to investigate the differential impacts of business, government and higher education sectors’ research and development expenditures (R&D) on innovation in OECD countries. Although the business sector has the largest share of the R&D sector due to its profit motive, there are also some efforts made by public and higher education sectors. On the other hand, for decades, the literature of economics is in doubt about the efficiency of the public sector. The study deals with the issue by making a panel data analysis covering 18 OECD countries over the 1981-2016 period and aims to examine the separated effects of these sectoral R&D expenditures on innovation performance. Since most of the existing literature mostly focused on the R&D-GDP relationship, the present study aims to contribute to a relatively untouched point. To obtain robust findings, recent econometric tests and estimators have been used. The previous studies in the existing literature ignored the possibility of cross-sectional dependence problem within the country samples. Ignoring this problem may yield biased and inconsistent results. The present study considers the existence of cross-sectional dependence between selected countries and checks the robustness of each test and estimator via recent econometric techniques. The findings reveal firstly that there is a cointegrating relationship between the number of domestic patents (innovation) and the other three R&D indicators. Secondly, the longrun estimation results imply that increases in the R&D expenditures made by business sector significantly raise innovation while there is no statistically significant evidence on the impact of R&D expenditures made by the government and higher education sectors. The findings reveal that the R&D efforts made by the government and higher education sectors cannot turn into innovation and do not contribute to the knowledge spillover mechanism.

An Empirical Investigation of the Disaggregated Import Demand Function: Non-linear ARDL Framework

2021 ◽  
pp. 001573252199516
Author(s):  
Khyati Kathuria ◽  
Nand Kumar
Keyword(s):  
Demand Function ◽  
Time Series Data ◽  
Import Demand ◽  
Series Data ◽  
Ardl Model ◽  
Relative Prices ◽  
Stable Relationship ◽  
Long Run ◽  
Non Linear ◽  
The Impact

The article estimates the disaggregated import demand function for India using annual time series data for the period 1995–2017. The empirical results reveal strong evidence of long-run stable relationship among the variables considered in the study. The disaggregated import demand function is estimated for India using linear and non-linear ARDL model. The estimated linear ARDL model shows that gross capital formation, exports and relative prices affect import demand positively and significantly, both in the short and long run. While the impact of final consumption expenditure was found to be insignificant in the short run, it affects import demand significantly and positively in the long run. On the other hand, the result of the non-linear ARDL model shows the evidence of asymmetry in the impact of relative prices (positive and negative changes) on import demand, both in the short and long run. JEL Codes: F41, B17, B41, C51

scholarly journals Dynamic Panel Analysis under Cross-Sectional Dependence

2014 ◽  
Vol 22 (2) ◽  
pp. 258-273 ◽  
Author(s):  
Khusrav Gaibulloev ◽  
Todd Sandler ◽  
Donggyu Sul
Keyword(s):  
Economic Growth ◽  
International Political Economy ◽  
Panel Analysis ◽  
Dynamic Panel ◽  
Cross Sectional ◽  
Dynamic Panels ◽  
Cross Sectional Dependence ◽  
Dynamic Panel Regression ◽  
Dynamic Panel Analysis ◽  
The Impact

This article investigates inconsistency and invalid statistical inference that often characterize dynamic panel analysis in international political economy. These econometric concerns are tied to Nickell bias and cross-sectional dependence. First, we discuss how to avoid Nickell bias in dynamic panels. Second, we put forward factor-augmented dynamic panel regression as a means for addressing cross-sectional dependence. As a specific application, we use our methods for an analysis of the impact of terrorism on economic growth. Different terrorism variables are shown to have no influence on economic growth for five regional samples when Nickell bias and cross-dependence are taken into account. Our finding about terrorism and growth is contrary to the extant literature.

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