scholarly journals Investment Portfolio, Democratic Accountability, Poverty and Income Inequality Nexus in Pakistan: A Way to Social Sustainability

2021 ◽  
Vol 13 (11) ◽  
pp. 6411
Author(s):  
Muhammad Shahid Hassan ◽  
Haider Mahmood ◽  
Muhammad Ibrahim Saeed ◽  
Tarek Tawfik Yousef Alkhateeb ◽  
Noman Arshed ◽  
...  
Keyword(s):  
Income Inequality ◽  
Social Sustainability ◽  
Data Availability ◽  
Democratic Accountability ◽  
Investment Portfolio ◽  
Economic Activities ◽  
Distributed Lag ◽  
Autoregressive Distributed Lag ◽  
Short Run

Institutions help to streamline the economic activity-related procedures, where government intervention might be involved. Institutions also play a significant role in social sustainability. The findings using the Autoregressive Distributed Lag approach to cointegration for the period from 1984–2019 reveal that investment portfolio and democratic accountability reduce poverty in Pakistan both in the long and short run. Moreover, democratic accountability helps to reduce income inequality, but the investment portfolio’s role is not significant. The literacy rate helps to reduce income inequality, and inflation increases poverty and income inequality. The remittances increase income inequality, and urbanization increases poverty. To eradicate poverty and income inequality, the governments should be accountable for their actions to the general public while they remain in power. If they do not deliver as per their manifestoes, they will not be reelected in the next election. Moreover, there is a dire need to redefine the role of an investment portfolio to reduce the risk of investment. So, investments would increase economic activities and could reduce poverty and income inequality. This study contributes to the literature by inquiring about the role of the investment portfolio and democratic accountability in social sustainability by reducing poverty and income inequality. This study only considers Pakistan’s economy due to limitations of poverty data availability in other countries. The scope could further be broadened by accessing data for a wider Asia region to test the role of the investment portfolio and democratic accountability to reduce poverty and income inequality.

scholarly journals The mediating role of institutions in the remittance-growth relationship: Evidence from Nigeria

2020 ◽  
Vol 65 (227) ◽  
pp. 7-30
Author(s):  
Ibrahim Adekunle ◽  
Tolulope Williams ◽  
Olatunde Omokanmi ◽  
Serifat Onayemi
Keyword(s):  
Institutional Environment ◽  
External Financing ◽  
Mediating Role ◽  
Distributed Lag ◽  
Autoregressive Distributed Lag ◽  
Regulatory Quality ◽  
Long Run ◽  
Short Run ◽  
And Control

This study examines the mediating role of institutions in the remittance- growth relationship in Nigeria. We use autoregressive distributed lag (ARDL) estimation to establish the interaction of the variables of interest. The short-run results reveal that remittance inflows positively influence growth, probably due to the immediate injection of financial resources that an increase in remittances brings about. This effect is reinforced by improvements in regulatory quality. In contrast the long-run results reveal that, over time, remittance inflows are negatively related to growth probably due to adverse macroeconomic consequences, to a decrease in work incentives, and a decline in the motivation for technological innovation. However, the adoption of improved institutional environment is found to offset the negative long-run effect of remittances on growth, at least to some extent. Therefore, remittance receiving countries should improve the design and enforcement of laws, regulatory quality, and control over corruption, so that they can make best use of remittance inflows and other sources of external financing needed to augment domestic productivity and growth.

scholarly journals The Dynamics of Exchange Rate, Inflation, and Trade Balance in Indonesia

2021 ◽  
pp. 273
Author(s):  
Nayaka Artha Wicesa ◽  
Yon Widiyono ◽  
David Kaluge
Keyword(s):  
Exchange Rate ◽  
Open Economy ◽  
Jel Classification ◽  
Economic Activities ◽  
Trade Surplus ◽  
Distributed Lag ◽  
Autoregressive Distributed Lag ◽  
J Curve ◽  
Short Run ◽  
Balance Of Trade

Balance of trade has become an essential indicator for economic activities, particularly in countries adopting the open economy. During the last two decades, Indonesia has had trade surplus. The open economy has created dynamics in macroeconomic variables. The purpose of this research is to identify any dynamics between exchange rate, inflation, and balance of trade in Indonesia. Using the Autoregressive Distributed Lag, this study finds the dynamics between the said variables. In the short run, there are causalities between exchange rate and balance of trade, exchange rate and inflation, and balance of trade and inflation. In addition, J-Curve also occurred in Indonesia, where depreciation in exchange rate gradually improves the country’s balance of trade in the second and fourth quarters. Keywords: Exchange Rate, Inflation, Balance of Trade, Autoregressive Distributed Lag JEL Classification: F1, F4, C1  

scholarly journals The role of services in the environmental Kuznets curve

2020 ◽  
Vol 9 (4) ◽  
pp. 326-333
Author(s):  
Manuel Cantavella
Keyword(s):  
Co2 Emissions ◽  
Environmental Kuznets Curve ◽  
Kuznets Curve ◽  
Economic Activities ◽  
Services Sector ◽  
Distributed Lag ◽  
Autoregressive Distributed Lag ◽  
Curve Model ◽  
Carbon Dioxide Co2

This paper examines the influence of services activity in the environmental Kuznets curve (EKC) model regarding carbon dioxide (CO2) emissions. The analysis is applied for Spain during the period 1940-2014. It compares the standard environmental Kuznets curve model and its modification by isolating the evolution of services effect. The results through the autoregressive distributed-lag (ARDL) estimation strategy confirm that even though all economic activities tend to be more and more sustainable, it is the evolution of services sector that becomes fundamental in the reduction of per capita CO2 emissions.

scholarly journals Effects of Remittances on Income Inequality in Bangladesh: A Macroeconomic Analysis

2021 ◽  
pp. 106-118
Author(s):  
Hazera-Tun -Nessa
Keyword(s):  
Income Inequality ◽  
Unit Root Test ◽  
Data Availability ◽  
Distributed Lag ◽  
Macroeconomic Analysis ◽  
Long Run ◽  
Short Run ◽  
Cent Level ◽  
Level Of Significance ◽  
Bound Test

This study attempts to examine the effects of remittances on income inequality in Bangladesh over the period of 1990 to 2016. The study period has been chosen based on data availability at macro level. To serve the purpose, Autoregressive Distributed Lag (ARDL) cointegration technique is applied since unit root test confirms a combination of variables some which are stationary at level and others become stationary after first difference. The error correction model estimated by reparametrizing the ARDL model after having confirmation about the existence of long run relationship through bound test. An inverted U-shaped relationship between the remittances and income inequality has been found by the study. Remittances increase income inequality in short run and decrease income inequality in the long run.  In the long run an increase in remittances by 1 per cent reduces the income inequality by 11 per cent on an average. The adjustment coefficient has the expected negative sign at 1 per cent level of significance which ensure a monotonically convergent adjustment towards the equilibrium with the speed of 21.65 per cent. Among other control variables, private credit increases income inequality in the long run and decrease it in the short run. Exchange rate and inflation either have very negligible effects or no significant effects both in short run and in long run. Based on the findings, it could be suggested that the country should take proper steps to encourage investment of remittances in productive activities to accumulate capital which could ensure the path of accruing the beneficial impacts of remittances on income inequality in the long run.

Dynamics of Food Inflation: Assessing the Role of Intermediaries

2018 ◽  
Vol 19 (5) ◽  
pp. 1363-1378
Author(s):  
Sugandha Huria ◽  
Kanika Pathania
Keyword(s):  
Food Prices ◽  
Distributed Lag ◽  
Autoregressive Distributed Lag ◽  
Food Grains ◽  
Long Run ◽  
Ardl Approach ◽  
Short Run ◽  
Retail Prices ◽  
Food Grain

The recent upsurge in the food prices experienced by the Indian economy since the latter half of 2000s has made it imperative for the policymakers to identify the crucial factors, which affect food prices within the economy. Against this backdrop, the present article determines the various key factors impacting the prices of food grains, specifically elucidating the role of intermediaries in this regard. By applying the autoregressive distributed lag (ARDL) approach to cointegration and quantifying the role of intermediaries by computing the price wedge between wholesale and retail prices of food grains, the study establishes the existence of both short-run and long-run relationships between price wedge and food grain inflation.

Modelling the economic role of hydropower: Evidence from bootstrap autoregressive distributed lag approach

2021 ◽  
Vol 168 ◽  
pp. 76-84
Author(s):  
Mufutau Opeyemi Bello ◽  
Sakiru Adebola Solarin ◽  
Yuen Yee Yen
Keyword(s):  
Economic Role ◽  
Distributed Lag ◽  
Autoregressive Distributed Lag

Impact of Environmental Tax on Comparative Advantage of Food and Food Products: A Study of G20 Countries in Light of Environmentally Sensitive Goods

2021 ◽  
pp. 001946622110352
Author(s):  
Alisha Mahajan ◽  
Kakali Majumdar
Keyword(s):  
Comparative Advantage ◽  
Food Products ◽  
Environmental Taxes ◽  
Environmental Tax ◽  
Distributed Lag ◽  
Autoregressive Distributed Lag ◽  
Long Run ◽  
Short Run ◽  
Environmentally Sensitive ◽  
The Relationship

Many countries are under constant fear that environmental policies might negatively influence the international competitiveness of polluting industries. In this study, we aim to evaluate the relationship and impact of the environmental tax on comparative advantage of trade in food and food products industry, considered to be one of the highly environmentally sensitive industries. This study also investigates, whether this relationship differs among countries covered in G20, with the help of correlation analysis. We select panel autoregressive distributed lag approach for this study as it can analyse long-run as well as short-run association even when the variables are stationary at different orders of integration. Using panel data from G20 countries over the period of 21 years that is from 1994 to 2015, it is concluded that when we allow environmental taxes to interact with the revealed comparative advantage (RCA) of G20 nations, the overall impact of the environmental tax on the RCA is negative in the long period. It is therefore suggested that countries should follow Porter hypothesis to stimulate innovations resulting from strict environmental regulations that affect the environment in least possible manner. JEL Codes: C01, C23, C33, F18, O57, Q5

scholarly journals Dollarization in Sierra Leone: Evidence and Some Policy Options

2020 ◽  
Vol 7 (4) ◽  
pp. 160
Author(s):  
Abu Bakarr TARAWALIE ◽  
Amadu JALLOH
Keyword(s):  
Exchange Rate ◽  
Sierra Leone ◽  
Correction Term ◽  
Financial Deepening ◽  
Policy Makers ◽  
Distributed Lag ◽  
Autoregressive Distributed Lag ◽  
Short Run ◽  
Key Policy ◽  
Main Determinants

This study aims to empirically investigate the determinants of dollarization in Sierra. It uses quarterly data from 1992Q1 to 2017Q4 and autoregressive distributed lag Bound Testing technique. Both the long and short run results revealed that inflation, exchange rate depreciation, financial deepening and war dummy were the main determinants of dollarization in Sierra Leone during the study period. The error correction term depicts that 53 percent of any disequilibrium in dollarization will be corrected within a year. A key policy recommendation is that policy makers should implement prudent policies that will ensure broader macroeconomic stability (including price stability and exchange rate stability) as a recipe for de-dollarization in Sierra Leone.

scholarly journals The Determinants of Food Prices in Pakistan

2012 ◽  
Vol 17 (1) ◽  
pp. 101-128 ◽  
Author(s):  
Henna Ahsan ◽  
Zainab Iftikhar ◽  
M. Ali Kemal
Keyword(s):  
Active Role ◽  
Food Prices ◽  
Significant Variable ◽  
Demand And Supply ◽  
Distributed Lag ◽  
Distributed Lag Model ◽  
Autoregressive Distributed Lag ◽  
Long Run ◽  
Short Run ◽  
Lag Model

Controlling prices is one of the biggest tasks that macroeconomic policymakers face. The objective of this study is to analyze the demand- and supply-side factors that affect food prices in Pakistan. We analyze their long-run relationship using an autoregressive distributed lag model for the period 1970–2010. Our results indicate that that the most significant variable affecting food prices in both the long and short run is money supply. We also find that subsidies can help reduce food prices in the long run but that their impact is very small. Increases in world food prices pressurize the domestic market in the absence of imports, which cause domestic food prices to rise. If, however, we import food crops at higher international prices, this can generate imported inflation. The error correction is statistically significant and shows that market forces play an active role in restoring the long-run equilibrium.

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