scholarly journals China’s Effect on World Energy–Growth Nexus: Spillovers Evidence from Financial Development and CO2 Emissions

Economies ◽  
2021 ◽  
Vol 9 (4) ◽  
pp. 136
Author(s):  
Luís Miguel Marques ◽  
José Alberto Fuinhas ◽  
António Cardoso Marques
Keyword(s):  
Co2 Emissions ◽  
Financial Development ◽  
Spillover Effects ◽  
Asia Pacific ◽  
Series Data ◽  
Annual Series ◽  
Energy Growth ◽  
Distributed Lag ◽  
World Regions ◽  
World Energy

This paper aims to extend the literature on the impacts of China’s policies on the world energy–growth nexus by analyzing the spillover effects of financial development and CO2 emissions. An autoregressive distributed lag approach was applied to annual series data from 1977 to 2016. Models for four world regions were developed, as well as a global model. The results reveal the traditional feedback hypothesis on the whole, both in the short- and long-run. Additionally, the results support that China’s CO2 emission and financial development promote world energy consumption. In regard to the four world regions, heterogeneous results were observed. Overall, China’s financial development and CO2 emissions also have heterogenous worldwide impacts with distinct magnitudes. Accordingly, no country should be indifferent to China’s policies, and independence should be promoted for Europe, Central Asia and Asia Pacific aggregates.

scholarly journals Are There Spillovers from China on the Global Energy-Growth Nexus? Evidence from Four World Regions

Economies ◽  
2019 ◽  
Vol 7 (2) ◽  
pp. 59 ◽  
Author(s):  
Luís Miguel Marques ◽  
José Alberto Fuinhas ◽  
António Cardoso Marques
Keyword(s):  
Economic Growth ◽  
Middle East ◽  
Central Asia ◽  
Spillover Effects ◽  
Asia Pacific ◽  
World Region ◽  
Energy Growth ◽  
World Regions ◽  
Long Run ◽  
The World

This paper analyses China’s energy consumption and economic growth spillover effects on four world regions: (i) America (North and South); (ii) Europe and Central Asia; (iii) Asia Pacific; and (iv) Africa and the Middle East. An annual aggregated time series by world region, from 1970 to 2016, and an autoregressive distributed lag (ARDL) approach were used. The results are consistent with the feedback hypothesis in the short run. With regard to the long run, feedback is present in America and the Asia Pacific. In Europe and Central Asia and in Africa and the Middle East, the results are consistent with the conservation hypothesis. Additionally, China’s spillover effects on the world energy-growth nexus are essentially a long-run phenomenon, with impacts on Europe and Central Asia, Asia Pacific, and Africa and the Middle East. Accordingly, policy-makers should be aware that China’s policies may have impact around the world, which indirectly may cause a restriction in economic growth.

scholarly journals Financial Development and Economic Growth: Evidence from Nepal

2020 ◽  
Vol 32 (1) ◽  
pp. 15-36
Author(s):  
Ramesh C. Paudel ◽  
Chakra Pani Acharya
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Financial Development ◽  
Direct Investment ◽  
Banking Sector ◽  
Time Series Data ◽  
Series Data ◽  
Distributed Lag ◽  
Domestic Credit ◽  
Good Policy

This paper aims to examine the role of financial development and economic growth in Nepal employing Autoregressive distributed lag (ARDL) approach of cointegration using time series data for the period from 1965 to 2018. Nepal is a unique country with big markets in the neighbors-India and China but remains as one of the poor landlocked developing countries, even being the earlier entrant in liberalization and reform. Nepal recently went through a substantial political transition and now the stable government is seeking substantial amount of foreign direct investment. In this background, it will be better, for a good policy analysis, to know how the financial activities have played the role in highly intended economic growth. We develop a model with five proxies of financial development (broad money, domestic credit to private sector, total credit from banking sector, capital formation, and foreign direct investment); and econometrically test their contribution in economic growth. Overall, the results suggest that financial development causes to economic growth substantially, except in the case of foreign direct investment. This result warns the policy makers to be more serious making investment friendly economy to attract the expected foreign direct investment.

scholarly journals Malaysia’s Energy-Growth Nexus and Environmental Kuznets Curve Hypothesis: Empirical Analysis Using the VECM and ARDL Cointegration Techniques

2021 ◽  
Vol 8 (1) ◽  
pp. 1-27
Author(s):  
Takashi Fukuda
Keyword(s):  
Economic Growth ◽  
Co2 Emissions ◽  
Environmental Kuznets Curve ◽  
Structural Break ◽  
Trade Openness ◽  
Kuznets Curve ◽  
Ekc Hypothesis ◽  
Energy Growth ◽  
Distributed Lag ◽  
Causality Tests

This paper investigated Malaysia’s energy-growth nexus and environmental Kuznets curve (EKC) hypothesis over the period 1971-2014 by taking the globalization variables of trade openness and foreign direct investment (FDI) and the structural break dummy of the Asian financial crisis of 1997 into estimation. To give interference, the Granger causality tests were implemented in the framework of two cointegration techniques: vector error correction model (VECM) and autoregressive distributed lag (ARDL). As per Malaysia’s energy-growth nexus, referring to different results of the two approaches, we concluded that the presence of the energy-growth nexus was statistically confirmed, but it has not been fully established yet in the country. On the other hand, both the VECM and ARDL results provided the same conclusion for Malaysia’s EKC hypothesis, that is, in the initial stage, as the higher economic growth, the less CO2 emissions, but after a threshold, the higher economic growth, the more CO2 emissions.

The Role of Financial Development in Economic Growth of Nepal: ARDL Approach of Cointegration with Structural Break Analysis

2020 ◽  
Vol 3 (4) ◽  
Author(s):  
Ramesh C. Paudel ◽  
Keyword(s):  
Economic Growth ◽  
Financial Development ◽  
Time Series Data ◽  
Financial Institution ◽  
Structural Break ◽  
Series Data ◽  
Distributed Lag ◽  
Long Run ◽  
Ardl Approach

This paper, using the most recent index of financial development as developed in Svirydzenka (2016), examines the role of financial development in the economic growth of Nepal. This paper employs the Autoregressive distributed lag (ARDL) approach of cointegration with the structural break in time series data for the period of 1980-2017. Nepal is a unique country with a population of about 30 million with high demographic dividend and big markets in the neighbours, the earlier entrant in the liberalization and reform in the region, endowed with lots of natural resources and beauties, and comparatively cheaper labor force in the region but it remains as one of the poor landlocked developing countries sandwiched between two emerging economies, namely China and India. The results show that financial development has a strong long-run positive relationship with economic growth. Therefore, developing the strategies for the proper financial development improving the financial institution quality and widening the financial market to improve capital formation would be a way to accelerate the economic growth in Nepal.

scholarly journals FINANCIAL MARKET DEVELOPMENT AND CO2 EMISSIONS NEXUS IN NIGERIA: AN APPLICATION OF ARDL APPROACH

2021 ◽  
Vol 6 (1) ◽  
pp. 91
Author(s):  
Kabiru Saidu Musa ◽  
Sulaiman Chindo ◽  
Rabiu Maijama'a
Keyword(s):  
Co2 Emissions ◽  
Financial Development ◽  
Financial Market ◽  
Structural Breaks ◽  
Income Level ◽  
Distributed Lag ◽  
Distributed Lag Model ◽  
Autoregressive Distributed Lag ◽  
Lag Model ◽  
The Impact

The paper investigated the impact of financial development on CO2 emissions in Nigeria from 1981 to 2019. In the process of investigating the impact, Augmented Dickey-Fuller and Philip Perron, as well as the Zivot-Andrew structural breaks, unit root tests were applied. Their results indicated that financial development, level of income, and CO2 emissions were stationary at the first difference and that of Zivot-Andrew structural breaks indicated a mixture of integration. Cointegration relationship among the variables was established through autoregressive distributed lag model bounds test. The autoregressive distributed lag model long-and-short run models results indicated that financial development and income level significantly negatively impact the CO2 emissions. The suggestion based on these results is that financial development and income level help in financing clean projects in the long-and-short runs. The Granger causality result revealed bidirectional causality from financial development to CO2 emissions, income level to CO2 emissions, and financial development to income level. The variance decomposition analysis indicates that financial development and income level have contributed less to CO2 emissions, and impulse response function results revealed that CO2 emissions respond negatively to shocks in financial development and income level. Therefore, we recommend expanding the Nigerian financial market in financing clean projects for a clean environment alongside checking income generation activities that bring about emissions of CO2, such as burning trees for charcoal production in the forest, among others.Keywords: Financial market development, CO2 emissions, ARDL approachJEL Classification: G20, Q53, C32

scholarly journals Financial Development, Fiscal Policy and Economic Growth: The Role of Institutional Quality in Pakistan

2019 ◽  
Vol 1 (2) ◽  
pp. 24-43
Author(s):  
Sidra Munir ◽  
Zia Ur Rehman Rao ◽  
S Sana
Keyword(s):  
Economic Growth ◽  
Fiscal Policy ◽  
Financial Development ◽  
Time Series Data ◽  
Positive Impact ◽  
Institutional Quality ◽  
Series Data ◽  
Distributed Lag ◽  
Autoregressive Distributed Lag ◽  
Study Results

The study examines the influence of financial development, fiscal policy, and institutional quality on the growth of Pakistan economy. We investigate whether financial development and or fiscal policies promote the economic growth. We also analyse the effect of institutional quality on economic growth of Pakistan. We use time series data from 1985-2016 and use GDP to proxy economic growth. We use unit-root tests to check for stationary of our sample. We perform a logarithmic transformation on the series to reduce outlier effects and use Autoregressive Distributed Lag (ARDL) Model. The results show that financial development and revenue have a positive impact on growth. Our study results implicate that sound, strategic, and result-oriented policies should be formulated to transform our institutions and financial sectors into well organized, powerful, and trusted frameworks. These transformations will ensure efficient and productive utilization of savings.

Asia Pacific productivity development determinants

2017 ◽  
Vol 13 (1) ◽  
pp. 57-64 ◽  
Author(s):  
Elsadig Musa Ahmed ◽  
Rahim Kialashki
Keyword(s):  
Technology Transfer ◽  
Productivity Growth ◽  
Spillover Effects ◽  
Output Growth ◽  
Asia Pacific ◽  
Series Data ◽  
Growth Theory ◽  
Content Type ◽  
Extensive Growth ◽  
Sustainable Productivity

Purpose The purpose of this paper is to measure the factors determining the productivity development in the Asia Pacific countries such as Malaysia, Indonesia, Singapore, Philippines, Thailand, China, Japan, Korea, India, Australia and New Zealand. Design/methodology/approach The extensive growth theory that is expressed as the decomposition of the contribution of changes in employment, physical capital, foreign direct investment (FDI), human capital (HC), telecommunications investment and total factor productivity (TFP) growth on the selected Asia-Pacific countries’ output growth is used in this study. In this respect, an annual time series data over the period 1970-2012 for the aforementioned variables are employed. Findings The study found that the FDI spillover effects through the TFP are considered as productivity-driven economic growth in which the FDI spillover effects have significant effect on the productivity growth of the majority of these countries. It should be noted that most of these countries showed technological progress through the FDI spillover effects that is translated into a form of technology transfer and HC skills development. Originality/value This study empirically compared the FDI spillover effects on sustainable productivity growth of the most growing countries in the Asia Pacific region by using modified extensive growth theory that closed the gaps in the past studies and addressed the issues of technology transfer, HC development and sustainable productivity growth brought by the technical progress in these countries through the FDI spillover effects on productivity growth.

scholarly journals Financial Development, Remittances Inflows and Economic Growth in Nigeria: A Time Series Analysis

2020 ◽  
pp. 37-43
Author(s):  
Eric Olabode Olabisi ◽  
Sunday Oseiweh Ogbeide
Keyword(s):  
Economic Growth ◽  
Time Series ◽  
Financial Development ◽  
Time Series Data ◽  
Financial Institution ◽  
Series Data ◽  
Significant Variable ◽  
Distributed Lag ◽  
Autoregressive Distributed Lag ◽  
The Government

This study examines whether financial development promotes remittances inflows and Nigerian economic growth. Using a time-series data for a period of 1985-2017, the Autoregressive Distributed Lag (ARDL) technique was employed. The results suggest that financial development in Nigeria exerted no significant impact on economic growth. It is an indication that financial development is not a significant variable for promoting remittances inflows into Nigeria. However, the study concludes that remittances inflows are a substitute for promoting individual’s financial business opportunities and economic growth. The study therefore recommends that the government should strengthen the Nigeria financial institution, and also institute a financial reform initiative that can enhance financial security as well as ease of accessing remittances inflows.

scholarly journals Role of Economic Growth, Financial Development, Trade, Energy and FDI in Environmental Kuznets Curve for Lithuania: Evidence from ARDL Bounds Testing Approach

2020 ◽  
Vol 31 (1) ◽  
pp. 39-49 ◽  
Author(s):  
Habib-ur Rahman ◽  
Ahmad Ghazali ◽  
Ghulam Ali Bhatti ◽  
Safdar Ullah Khan
Keyword(s):  
Economic Growth ◽  
Energy Consumption ◽  
Co2 Emissions ◽  
Financial Development ◽  
Environmental Kuznets Curve ◽  
Series Data ◽  
Kuznets Curve ◽  
Bounds Testing ◽  
Long Run ◽  
Ardl Bounds Testing

This paper examines the long-run relationship between carbon dioxide (CO2) emission and economic growth, financial development, trade, energy consumption, and foreign direct investment in the case of Lithuania by employing time series data of 1989-2018. In particular, this paper aims to test whether the Environmental Kuznets Curve (EKC) relationship for economic growth and financial development holds or not. The autoregressive distributed lag (ARDL) bounds testing procedure is employed for the empirical analysis. The results validate the existence of EKC in the long-run as well as in the short-run since there is an inverted U-shaped relation between CO2 emissions and economic growth. Conversely, we could not validate the EKC relationship between CO2 emissions and financial development. Trade and energy consumption are other significant determinants of CO2 emissions. The causality analysis results show that unidirectional causality runs from economic growth to CO2 emissions and trade to CO2 emissions. The validity of the EKC hypothesis indicates that Lithuania can achieve short-term, medium-term, and long-term climate change mitigation and adoption goals and objectives approved by the Parliament of the Republic of Lithuania without deteriorating its economic growth.

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