scholarly journals The Impact of Renewable Energy Sources on Financial Development, and Economic Growth: The Empirical Evidence from an Emerging Economy

Energies ◽  
2021 ◽  
Vol 14 (23) ◽  
pp. 8033
Author(s):  
David Guan ◽  
Ubaldo Comite ◽  
Muhammad Safdar Sial ◽  
Asma Salman ◽  
Boyao Zhang ◽  
...  
Keyword(s):  
Economic Growth ◽  
Panel Data ◽  
Financial Development ◽  
Time Series Data ◽  
Renewable Energy Sources ◽  
Series Data ◽  
Cross Sectional ◽  
Renewable Sources ◽  
The Impact ◽  
The Relationship

Developing energy from renewable sources and modernizing the energy system are critical components of China’s efforts to combat climate change. Policymakers and authorities have made significant attempts to bring them. However, one of the major impediments to China’s energy revolution is financial limitations, which are inextricably linked to the country’s economic growth. The present research paper intends to investigate the relationship between economic growth and sustainable financial development on the use of energy from renewable sources in both the short and long run in the context of China. To achieve this, the researchers have utilized the panel data consisting of 10 years from 2011 to 2020. When compared to cross-sectional and time-series data samples, the panel data model offers many benefits. For starters, the panel data includes information on the passage of time and the cross-sectional area. Another benefit of using panel-data models with a larger degree of freedom is that they provide more stable and reliable estimates across short periods across cross-sections. In the case of the short run, there is a positive relationship between economic and financial development and the use of energy from renewable sources in the context of all of China. While in the case of long-term effects, the results indicate the adverse impact of financial development on the use of energy from renewable sources in the western regions of China. These results were deduced using the causality test Granger proposed to determine the path of the causal relationship and the direction of the relationship between the variables. These results indicated that the relationship between economic and financial development in east China was unidirectional, and the nature of the underlying relationship was causal. Meanwhile, in east and west China, economic development in China as a whole has been unidirectionally increasing energy from renewable sources. Our empirical findings suggest many strategies for promoting the growth of energy from renewable sources.

scholarly journals THE NEXUS BETWEEN TAX REFORMATION, FINANCIAL DEVELOPMENT AND ECONOMIC RECOVERY: THE CASE OF MALAYSIA

2018 ◽  
Vol 24 (3) ◽  
pp. 1258-1279 ◽  
Author(s):  
Roshaiza TAHA ◽  
Jūratė ŠLIOGERIENĖ ◽  
Nanthakumar LOGANATHAN ◽  
Izolda JOKŠIENĖ ◽  
Muhammad SHAHBAZ ◽  
...  
Keyword(s):  
Economic Growth ◽  
Financial Development ◽  
Global Economy ◽  
Time Series Data ◽  
Series Data ◽  
Tax Revenue ◽  
Causality Analysis ◽  
Annual Time Series ◽  
New Policies ◽  
The Relationship

The main purpose of this paper is to establish the plausibility and the dynamic nexus between financial developments, economic growth and tax revenue in Malaysia. The analysis of these relationships is vital considering the instability of the global economy which has affected growth. In this study, we employed annual time series data covering the period of 1970–2015. Using advanced co-integration and causality analysis, we found strong evidence on the relationship between each of the examined variables. The results from this study provide evidence on the taxes-growth nexus for Malaysia. An inverted U-shaped relationship is found between financial development and tax collection, while a U-shape reflects the economic condition. The nexus between economic growth and tax revenue enhances fiscal policies in the creation of transparent and mature financial systems which will further boost the collection of government revenues in Malaysia. The results of this study may provide an avenue for researchers and policymakers to understand the nature of the relationship between the examined variables and further assist in the formulation of new policies for economic sustainability.

scholarly journals An Investigation of the Determinants of Savings and Investment in Nigeria

2015 ◽  
Vol 1 (2) ◽  
pp. 1 ◽  
Author(s):  
Adelakun O. Johnson
Keyword(s):  
Economic Growth ◽  
Positive Relationship ◽  
Inflation Rate ◽  
Time Series Data ◽  
Series Data ◽  
Correction Model ◽  
Use Of Time ◽  
The Impact ◽  
The Relationship

<p>This study examined the relationship between savings, investment and economic growth. A corollary of the work is the determination of which of the inputs of production contributes more to economic growth in Nigeria. The study makes use of time series data spanning twenty-nine years using error correction model. The result shows a positive relationship between savings, investment and economic growth in Nigeria. Of the determinants of savings considered in the study, inflation rate contributes negatively to saving, while interest rate positively affect saving. All these confirm economic theory. The striking feature of the study however is the confirmation of the impact of labour on economic growth, which according to the study far outweighs the contribution of capital.</p>

scholarly journals FINANCIAL DEVELOPMENT AND ECONOMIC GROWTH IN MALAYSIA FROM 1990 TO 2019: VECM APPROACH

2021 ◽  
Vol 3 (8) ◽  
pp. 37-54
Author(s):  
Norhidayati Mohamed Zakaria ◽  
Mohamad Yazis Ali Basah
Keyword(s):  
Economic Growth ◽  
Financial Development ◽  
Time Series Data ◽  
Global Financial Crisis ◽  
Gdp Per Capita ◽  
Series Data ◽  
Integration Test ◽  
Domestic Credit ◽  
Per Capita ◽  
The Relationship

Economists believe that efficient financial development is significant for building sustainable economic growth in any country. The global financial crisis, economic events and country’s uniqueness has resulted in continuous research to examine the relationship of financial and economic development using numerous methods and indicators which presented various simulation that led to different views on the linkages. Most of the studies had tested the indicators individually which resulted in less dynamic findings and creates a gap in the research. Hence, this paper aims to examine the relationship between financial development and economic growth in Malaysia by observing different economic indicators concurrently. This study using Malaysia’s annual time series data from 1990 to 2019. This study employs descriptive statistics, regression estimations, unit root test, Johansen co-integration test, VAR, and VECM modeling. The FTSE Kuala Lumpur Composite Index (FBMKLCI) and domestic credit as a percentage to GDP (DC) have been used as proxies for financial development while GDP per capita and Industrial Production Index (IPI) as proxies for economic growth. The findings reveal that FBMKLCI and domestic credit produces a significant relationship towards GDP per capita in the long run and short run. Contrary results found in FBMKLCI-domestic credit-IPI nexus whereby FBMKLCI and domestic credit demonstrate negative association towards IPI. As this study uses the same variables to indicates the relationship towards unalike economic growth gauge, more dynamic work and effort shall be considered to enhance the results. Government and respective institutions shall play their role effectively to revisit or formulate policy and law of the financial system to stimulate the growth of the Malaysian economy.

scholarly journals International Remittances and Economic Growth in Ghana: Does the Measure Of Financial Development Matter?

2020 ◽  
Vol 2 (1) ◽  
pp. 46-59 ◽  
Author(s):  
Samuel Antwi ◽  
Eugene Oware Koranteng ◽  
Eugene Oware Koranteng
Keyword(s):  
Economic Growth ◽  
Financial Development ◽  
Time Series Data ◽  
Negative Impact ◽  
Positive Impact ◽  
Series Data ◽  
Aggregate Output ◽  
Real Gdp ◽  
International Remittances ◽  
The Impact

Empirical results of the effect of international remittances on economic growth of individual countries and groups of countries have yielded mixed results. This study is intended to add to the debate on the impact of international remittances on the aggregate output of individual countries, Ghana in this case. An earlier panel data study found a negative impact of remittance on real GDP and prompted further research on the topic for individual countries and groups of countries. The papers which followed and were able to correct for endogeneity in the models, found a mild positive impact of private unrequited remittances on economic growth. The impact of remittances on economic growth of a particular country depends on the proportion of remittances invested and consumed, the level of financial development and the quality of institutions in the country. This study used time series data from 1990 to 2014 on Ghana and found a positive impact of remittances on the growth rate of real GDP. Engel and Granger Cointegration test and Error Correction Models were used. Remittances were found to be pro-cyclical. Granger causality tests which corrects for the errors of cointegrated variables found causality running from financial development to remittances and from remittances to real GDP. Remittances have been found in other studies to benefit the Ghanaian economy by reducing poverty and sustaining the current account. This study shows a positive impact of remittances on aggregate output. Thus requiring policies to increase the flows and encourage their investment. Keywords: International Remittances, Economic Growth, Ghana, Financial Development.

scholarly journals The Effect of Foreign Direct Investment on Indonesia’s Economic Growth

2016 ◽  
Vol 1 (2) ◽  
pp. 18-24
Author(s):  
Abdul Hadi Ilman
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
Time Series Data ◽  
Series Data ◽  
Linear Regression Method ◽  
Domestic Investment ◽  
Relationship Of ◽  
The Impact ◽  
The Relationship

The relationship of Foreign Direct Investment (FDI) on economic growth is one of the most debatable topic in economic. This study is aiming to investigate the impact of FDI on economic growth in Indonesia. This research using linear regression method which base on time series data from 1981 to 2012. A Major finding is there is no special relationship between FDI and economic growth, both directly and indirectly. Moreover, FDI does crowd-in the domestic investment and is no significance evidence to prove that FDI is more efficient on economic growth than domestic investment.

scholarly journals Does trade openness cause economic growth in Bangladesh?

IIUC Studies ◽  
2020 ◽  
Vol 16 ◽  
pp. 99-110
Author(s):  
Sharmina Khanom
Keyword(s):  
Economic Growth ◽  
Time Series Data ◽  
Trade Openness ◽  
Unit Root Test ◽  
Positive Association ◽  
Series Data ◽  
Restrictive Trade ◽  
Annual Time Series ◽  
The Impact ◽  
The Relationship

Bangladesh has followed a restrictive trade policy immediately after its liberation. But the system was proven wrong, and gradually it opened up its market to others and started to improve its foreign trade. This paper investigates the impact of trade openness on Bangladesh's economic growth using annual time-series data for the period from 1972-73 to 2015-16. The paper uses such econometric tools as unit root test, cointegration test and error correction model to investigate the relationship between the variables. This study revealed a positive association between export and GDP but the opposite relation between import and GDP and recommended to enhance export earnings. IIUC Studies Vol.16, December 2019: 99-110

scholarly journals GROWTH AND OPENNESS RELATIONSHIP IN THE EU15: PANEL DATA ANALYSIS

Ekonomika ◽  
2010 ◽  
Vol 89 (2) ◽  
pp. 44-54 ◽  
Author(s):  
Erginbay Uğurlu
Keyword(s):  
Economic Growth ◽  
Panel Data ◽  
Fixed Effects ◽  
Time Series Data ◽  
Negative Impact ◽  
Panel Data Analysis ◽  
Empirical Work ◽  
Series Data ◽  
The Impact ◽  
The Eu

Conventional wisdom suggests that openness of an economy promotes economic growth. There is still argument among economists concerning how a country’s macroeconomic variables and its economic growth interact in numerous econometric studies by using panel data. This paper examines the impact of openness on economic growth for the EU-15 area in 1996–2003. In our empirical work, we have used the panel data technique which is also called longitudinal data or cross-sectional time series data. Panel data is generally concerned with choosing among three alternative regressions that are named fixed effects, random effects and pooled model estimation. The variables used are growth, openness, price level, investment and government share of RGDP. We find that openness has had a weak but negative impact on economic growth in this region over this period. Also, we have found that an increase in investment and a decrease in government expenditure have supported economic growth in the EU-15 countries.

scholarly journals Human Capital and Economic Growth: Pakistan, 1960-2003

2008 ◽  
Vol 13 (1) ◽  
pp. 1-27 ◽  
Author(s):  
Qaisar Abbas ◽  
James Foreman-Peck
Keyword(s):  
Economic Growth ◽  
Human Capital ◽  
Time Series Data ◽  
Critical Role ◽  
Health Spending ◽  
Series Data ◽  
Negative Contribution ◽  
Secondary Schooling ◽  
The Impact ◽  
The Relationship

This paper investigates the relationship between human capital and economic growth in Pakistan with aggregate time series data. Estimated with the Johansen (1991) approach, the fitted model indicates a critical role for human capital in boosting the economy’s capacity to absorb world technical progress. Much higher returns, including spillovers, to secondary schooling in Pakistan than in OECD economies is consistent with very substantial education under-investment in Pakistan. Similarly, extremely large returns to health spending compare very favorably with industrial investment. Human capital is estimated to have accounted for just under one-fifth of the increase in Pakistan’s GDP per head. Since the 1990s, the impact of deficient human capital policies is shown by the negative contribution to economic growth.

scholarly journals The Influence of Fiscal Decentralization, Economic Growth, and Economic Openness on the Inter-Provincial Development Disparity in Java During 2001-2017

2020 ◽  
Vol 15 (2) ◽  
Author(s):  
Wahyu Dwi Artaningtyas ◽  
Asih Sri Winarti
Keyword(s):  
Economic Growth ◽  
Panel Data ◽  
Time Series Data ◽  
Fiscal Decentralization ◽  
Random Effect ◽  
Random Effect Model ◽  
Series Data ◽  
Economic Activities ◽  
Economic Openness ◽  
Cross Sectional

In general, economic growth is defined as a process which leads to the increase of per capita income of a population in a long term. Inter-region disparity in terms of economic development is a common phenomenon in a region’s economic activities. This study aims to determine the effect of economic growth, economic openness, and the degree of fiscal decentralization on development disparities between provinces in Java within 2001-2017. Panel data regression was used together with the Random Effect Model as a data analysis technique. The data used was panel data consisting of time series data from 2001-2017 and cross-sectional data covering Special Capital Region of Jakarta, West Java, East Java, Special Region of Yogyakarta, Central Java, and Banten. The results show that economic growth and fiscal decentralization significantly influence development disparity between provinces in Java while economic openness does not affect the development inequality.

scholarly journals The Impact of Saving and Financial Development on Economic Growth in Turkey

2019 ◽  
Vol 11 (2) ◽  
pp. 1
Author(s):  
Hatem Hatef Abdulkadhim Altaee ◽  
Mohamed Khaled Al-Jafari
Keyword(s):  
Economic Growth ◽  
Financial Development ◽  
Time Series Data ◽  
Series Data ◽  
Domestic Saving ◽  
Distributed Lag ◽  
Autoregressive Distributed Lag ◽  
Long Run ◽  
Short Run ◽  
The Impact

Since saving and financial development are vital to economic growth, this research empirically investigates the impact of saving and financial development on economic growth in Turkey. Therefore, a time series data from 1968 until 2017 were tested utilizing both the error correction model (ECM) and the autoregressive distributed lag approach (ARDL). The findings reveal an existence of a short-run and a long-run positive and significant effect of savings and financial development on economic growth. Conventional inputs such as capital and labor proved to be the most important factors in achieving economic growth in Turkey. The study concludes that an appropriate policy mix will enhance domestic saving in the country.

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