Electricity Consumption in China: The Effects of Financial Development and Trade Openness

As China is facing the double pressure of economic growth as well as energy-saving and reduction of emissions, reducing electricity consumption without affecting economic development is a challenging and critical issue. Based on 31 provincial panel’s data in China from 2004 to 2018, this study empirically analyzes the direction and degree of the impact of financial development and trade openness on electricity consumption using the spatial econometric approach and panel vector autoregression (PVAR) model. The results indicate that China’s electricity consumption presents a significant spatial spill over effect, and the spatial agglomeration of electricity consumption in local regions is mainly HH clusters. A 1% positive change in financial development causes an increase of 0.089% in electricity consumption, but a 1% rise in financial development reduces electricity consumption of neighboring regions by 0.051%. A 1% positive change in trade openness decreases electricity consumption by 0.051%, while the spatial spillover effect of trade openness is not significant. It is also found that financial development has a long-term promoting effect on electricity consumption, while trade openness has a long-term inhibiting effect on electricity consumption.

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Popularity Brings Better Sales or Vice Versa: Evidence from Instagram and OpenTable

Global Business Review ◽

10.1177/09721509211044302 ◽

2021 ◽

pp. 097215092110443

Author(s):

Hanane Lasmi ◽

Chul Ho Lee ◽

Yasin Ceran

Keyword(s):

Granger Causality ◽

Fixed Effects ◽

Business Performance ◽

Spillover Effect ◽

Restaurant Industry ◽

Reverse Causality ◽

Positive Effects ◽

Verse Effect ◽

The Impact ◽

Panel Vector Autoregression

With the popularity of user-generated content (UGC), an increasing number of studies have investigated its impact on business performance. However, prior studies were limited to a single platform and showed the effects of UGC of a platform, for example, customer textual comments or customer numeral ratings, on sales/reservation of the same platform. In practice, users often refer to a UGC, for example, Instagram, and purchase it on other platforms. To incorporate the spillover effect, we considered the restaurant industry because it has active participation across various channels. Using topic modelling, we first identified from Instagram four topics of users’ interest regarding a restaurant, such as location, nightlife, food and celebration. From fixed effects models’ estimation, we found that (a) recommendation and mention of Instagram have positive effects, and (b) comments of location and food also have positive significant fixed effects, but (c) the impact of Instagram volume is curvilinear and positive significant effect the sales. Since the curvilinear effects may come from reverse causality, that is, higher reservation, might bring more customers and comments on social networking service (SNS) (echo verse effect in our paper). Therefore, we further analysed two-way Granger causality and panel vector autoregression to identify the endogeneity, and the results showed the existing Granger causality loop between OpenTable review and Instagram post volumes.

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The Impact of Industrialization, Trade Openness, Financial Development, and Energy Consumption on Economic Growth in Indonesia

Economies ◽

10.3390/economies9040174 ◽

2021 ◽

Vol 9 (4) ◽

pp. 174

Author(s):

Khalid Eltayeb Elfaki ◽

Rossanto Dwi Handoyo ◽

Kabiru Hannafi Ibrahim

Keyword(s):

Economic Growth ◽

Energy Consumption ◽

Least Squares ◽

Financial Development ◽

Correction Term ◽

Trade Openness ◽

Ordinary Least Squares ◽

Distributed Lag ◽

Long Run ◽

The Impact

This study aimed to scrutinize the impact of financial development, energy consumption, industrialization, and trade openness on economic growth in Indonesia over the period 1984–2018. To do so, the study employed the autoregressive distributed lag (ARDL) model to estimate the long-run and short-run nexus among the variables. Furthermore, fully modified ordinary least squares (FMOLS), dynamic least squares (DOLS), and canonical cointegrating regression (CCR) were used for a more robust examination of the empirical findings. The result of cointegration confirms the presence of cointegration among the variables. Findings from the ARDL indicate that industrialization, energy consumption, and financial development (measured by domestic credit) positively influence economic growth in the long run. However, financial development (measured by money supply) and trade openness demonstrate a negative effect on economic growth. The positive nexus among industrialization, financial development, energy consumption, and economic growth explains that these variables were stimulating growth in Indonesia. The error correction term indicates a 68% annual adjustment from any deviation in the previous period’s long-run equilibrium economic growth. These findings provide a strong testimony that industrialization and financial development are key to sustained long-run economic growth in Indonesia.

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Long-term structural monitoring of multi-story RC structures, based on data extracted from ambient noise and earthquake vibrations

10.5194/egusphere-egu21-13050 ◽

2021 ◽

Author(s):

Alexandru Tiganescu ◽

Bogdan Grecu ◽

Iolanda-Gabriela Craifaleanu ◽

Dragos Toma-Danila ◽

Stefan-Florin Balan

Keyword(s):

Monitoring System ◽

Ambient Noise ◽

Critical Issue ◽

Seismic Events ◽

Noise Sources ◽

Rc Structures ◽

Infrastructure Monitoring ◽

Human Operators ◽

The Impact

The impact of natural hazards on structures and infrastructures is a critical issue that needs to be properly addressed by both public and private entities. To better cope with seismic hazard and to mitigate the risk, long-term multi-sensor infrastructure monitoring represents a useful tool for acquiring information on their condition and vulnerability. However, the current increasing data volume collected using sensors is not suitable to be processed with classical standalone methods. Thus, automatic algorithms and decision-making frameworks should be developed to use this data, with minimum intervention from human operators. A case-study for the application of advanced methods is focused on the headquarters of the Institute for Atomic Physics, a 11-story reinforced concrete building, located near Bucharest, Romania. The instrumentation scheme consists of accelerometers installed at the basement, at an intermediate floor and at the top of the structure. The data were continuously recorded, starting with December 2013. More than 80 seismic events with moment magnitude, MW, larger than 3.8 were recorded during the monitoring period. The current study covers the long-term evolution and variation of dynamic parameters (one value per hour), based on both ambient noise sources and small and medium magnitude seismic events. The seasonal variation of these parameters will be determined, as well as their daily variation and the differences between values obtained from ambient noise and from earthquake-induced vibrations. Other atmospheric parameters (e.g. temperature, precipitation, wind speed) will be considered in future studies. The goal of the PREVENT project, in the framework of which the research is performed, is to collect multi-disciplinary data and to integrate them into a complex monitoring system. The current study achieved the first step, focusing on data from the seismic sensors and setting up the premises for a multi-sensor, multi-parameter, more reliable infrastructure monitoring system.&#160;&#160;

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Impact of financial development on agricultural productivity in South Asia

Agricultural Economics (Zemědělská ekonomika) ◽

10.17221/199/2018-agricecon ◽

2019 ◽

Vol 65 (No. 5) ◽

pp. 232-239 ◽

Cited By ~ 2

Author(s):

Muhammad Zakaria ◽

Wen Jun ◽

Marium Farrukh Khan

Keyword(s):

South Asia ◽

Financial Development ◽

Labour Force ◽

Trade Openness ◽

Agricultural Productivity ◽

Robustness Analysis ◽

Physical Capital ◽

Income Level ◽

Negative Effects ◽

The Impact

The paper examines the impact of financial development on agricultural productivity in South Asia using data for the period 1973–2015. The other variables included are physical capital, human capital, trade openness and income level. It is found that all variables have cross-section dependence and they are stationary at first differences. It is found that long-run cointegration holds among variables. The estimated results show that financial development has an inverted U-shaped effect on agricultural productivity, which implies that agricultural productivity first increases with the increase in financial development and then it declines when financial development further increases. Agricultural productivity increases with the increase in both physical and human capitals. Agricultural productivity also improves with trade openness and income level. The results of the robustness analysis show that terms of trade has a negative effect on agricultural productivity. Further, industrialisation has positive while carbon emission and rural labour force have negative effects on agricultural productivity in the region.

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Trade Openness and Economic Growth in Indonesia

Wiga Jurnal Penelitian Ilmu Ekonomi ◽

10.30741/wiga.v10i2.599 ◽

2020 ◽

Vol 10 (2) ◽

pp. 163-170

Author(s):

Khoirul Ifa ◽

Moh. Yahdi

Keyword(s):

Economic Growth ◽

International Trade ◽

Time Series Data ◽

Trade Openness ◽

Generalized Method Of Moments ◽

Series Data ◽

Test Results ◽

Rapid Economic Growth ◽

The Impact

Economic growth and international trade are related to one another. International trade stimulates long-term economic growth. The more trade activities in a country, the more rapid economic growth; this trade is a key component of development in a country, its contribution is felt with the increasing economic growth in several countries. The purpose of this study looks at the impact of trade openness on economic growth in Indonesia in 1986-2017. This research is a quantitative study using time series data from 1986-2017, research data obtained from the world bank, data analysis techniques using the GMM method to see the impact of trade openness on economic growth. The test results using the Generalized Method of Moments analysis method show that all variables significantly influence the dynamics of economic growth in Indonesia. This result is proven by the t-statistic probability value, which shows a smaller value compared to the t-table value. Then the value also has a probability of less than α. It can be concluded that the variables of trade, FDI, inflation, and the number of workers have a significant effect on economic growth in Indonesia.

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Energy Intensity Determinants Based on Structure-oriented Cointegration by Embedding a Knowledge Box in a Time Series Model: Evidence From Iran

10.21203/rs.3.rs-263118/v1 ◽

2021 ◽

Author(s):

Parisa Esmaeili ◽

Meysam Rafei

Keyword(s):

Financial Development ◽

Energy Intensity ◽

Trade Openness ◽

Decomposition Analysis ◽

Directed Acyclic Graphs ◽

Impulse Response Functions ◽

Government Investment ◽

Long Run ◽

Oil Revenues ◽

The Impact

Abstract Energy intensity reduction is an exigent issue for Iran, where energy consumption is so high. Therefore, finding effective policies to reduce energy intensity is important. With this in mind, the impact of financial development, government investment, oil revenues, and trade openness on energy intensity is assessed in this study. We combined Structural Vector Error Correction Model (SVECM) and Directed Acyclic Graphs (DAG) technique to examine the relationships between study variables. The results of DAG prove that financial development, government investment, oil revenues, and trade openness influence the intensity of energy. Besides, the significant and long-run relationships among variables allowed us to apply SVECM. Impulse response functions and variance decomposition analysis indicate that government investment, oil revenues, and trade openness are negatively associated with the intensity of energy. Also, financial development positively influences energy intensity. Meanwhile, the impact of government investment is greater than oil revenues, trade openness, and financial development impacts. So, Government investment is the most effective policy regarding optimizing the consumption of energy and reducing energy intensity. We also advise policymakers to use oil revenues to increase government investment, enhancing the level of trade openness, and tax to the private sector to improve the level of energy intensity.

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Evaluating the Effects of Economic and Financial Development on the Renewable Energy Consumption

Scientific Research of Faculty of Economics. Electronic Journal ◽

10.38050/2078-3809-2018-10-4-65-76 ◽

2018 ◽

Vol 10 (4) ◽

pp. 65-76

Author(s):

Polina I. Solovyeva ◽

Anastasia V. Ulitkina

Keyword(s):

Renewable Energy ◽

Development Strategy ◽

Financial Development ◽

Electricity Consumption ◽

Energy Markets ◽

Financial Indicators ◽

Renewable Electricity ◽

Renewable Energy Consumption ◽

Financial Indicator ◽

The Impact

Nowadays renewable energy has become one of the key trends in the energy markets development strategy. The aim of this article is to analyze the impact of economic and financial development on the consumption of renewable electricity. We find that there is a certain set of economic and financial indicators that affects the amount of renewable electricity consumption, but final results depend on the surveyed group of countries. While estimating BRICS we find that there is a positive correlation between economic and financial development and the consumption of renewable electricity. The financial indicator of the share of liquid liabilities in GDP has the greatest impact on the renewable energy consumed.

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Multi-Time Scale Spillover Effect of International Oil Price Fluctuation on China’s Stock Markets

Energies ◽

10.3390/en13184641 ◽

2020 ◽

Vol 13 (18) ◽

pp. 4641

Author(s):

Jingran Zhu ◽

Qinghua Song ◽

Dalia Streimikiene

Keyword(s):

Crude Oil ◽

Time Scale ◽

Stock Markets ◽

Spillover Effect ◽

Oil Price ◽

Time Varying ◽

Price Fluctuation ◽

The Impact ◽

Oil Price Fluctuation

With the continuous increase of China’s foreign-trade dependence on crude oil and the accelerating integration of the international crude oil market and the Chinese finance market, the spillover effect of international oil price fluctuation on China’s stock markets increasingly attracts the attention of the public. In order to explore the impact of international oil price fluctuation on China’s stock markets and the time-varying spillover differences of industry sectors, this study proposes three research hypotheses and constructs a multi-time scale analysis framework based on wavelet analysis and a time-varying t-Copula model. In this paper, we use the Shanghai Composite Index as the representative of a general trend of the stock market, and we use the stock index of the China Securities Industry as the counterpart of industrial sectors. Based on the data from 5 January 2005 to 31 May 2020, this paper measures and analyzes the spillover effect of international oil price fluctuation on China’s stock markets, under different volatility periods. The results show that, firstly, the spillover effect of international oil price fluctuation on the Chinese stock markets is different. In the short and medium volatility period, the changes in international oil price are ahead of the changes in the Chinese stock markets, while the latter is ahead of the former under long-term fluctuations. Secondly, the spillover effect of international oil price fluctuation on China’s industry stock indexes is persistent. As the time scale increases, the tail dependency will increase. Finally, the impact of risk events aggravates the volatility of the stock markets in the short-term, while the mid- to long-term impact mainly affects the volatility trend. Investment risk control can make overall arrangement on the basis of the characteristics of oil price impact under different fluctuation stages.

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

The Singapore Economic Review ◽

10.1142/s0217590820500241 ◽

2020 ◽

pp. 2050024 ◽

Cited By ~ 2

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.

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Institutions and Foreign Direct Investment: Evidence from Sub-Saharan Africa Regions

Journal of Sustainable Development ◽

10.5539/jsd.v9n4p11 ◽

2016 ◽

Vol 9 (4) ◽

pp. 11

Author(s):

John Mayanja Bbale ◽

John Bosco Nnyanzi

Keyword(s):

Financial Development ◽

Fixed Effects ◽

Trade Openness ◽

Institutional Quality ◽

The Other ◽

Sub Saharan Africa ◽

Capital Account ◽

Infrastructure Development ◽

Fdi Inflows ◽

The Impact

The paper set out to investigate the nexus between institutional quality and inward FDI and how the presence of liberalization and financial development influence this linkage. We build on Dunning’s eclectic paradigm that focuses on locational advantages. A fixed effects approach is employed and the estimation results confirm the crucial role of institutional quality in attracting FDI inflows. However the impact varies with the particular group. In particular, apart from SADC, institutional quality seems to matter significantly in all the other groups especially in EAC and ECOWAS. Additional findings reveal a mixed impact regarding the presence of financial development and liberalization in the institution-FDI nexus: While Trade liberalization policies seem to be at the forefront in ECOWAS and SADC groups, it is credit depth and capital account openness that appear to matter most in EAC. We confirm the resilience of inward FDI during the global crisis and document a positive significant relationship between FDI inflows on the one hand and host market size and infrastructure development on the other. While a one-size-fits-all-policy should be discouraged due to the heterogeneous nature of SSA countries, overall, a comprehensive set of policies designed with caution to improve the institutional quality, the financial system, trade openness and capital account liberalization would be valuable for attracting FDI inflows to SSA.

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