Technological Spillovers, Manufacturing Growth and Transboundary Pollution in Case of Pakistan

2020 ◽  
Vol 4 (2) ◽  
pp. 23-40
Author(s):  
Muhammad Usman ◽  
Gulnaz Hameed ◽  
Abdul Saboor ◽  
Khuram Nawaz
Keyword(s):  
Climate Change ◽  
Time Series Data ◽  
Manufacturing Sector ◽  
Series Data ◽  
Positive Role ◽  
Technological Spillovers ◽  
Technological Spillover ◽  
Long Run ◽  
Manufacturing Growth ◽  
Bound Test

Role of technological spillover in manufacturing sector growth and climate change is the running debate in the world to avoid the problem of production inefficiency and environmental damages. Environment friendly technological spillover plays pivotal role in manufacturing sector growth which leads to economic growth. In order to investigate the inconclusiveness of the major issues of production inefficiency and climate change in Pakistan the current research was aimed at finding the relationship between technological spillovers, manufacturing growth and climate change. To meet the objectives, the study investigated both short run and long run dynamics by employing Autoregressive Distributive Lagged (ARDL) model. An annual time series data over the period of 1973 to 2017 was collected for comparative analysis of technological spillover performance in manufacturing sector and environmental condition of the country. The results of CUSM test and Bound test validated the existence of long run co-integration relationship among estimated models. The results demonstrated that technological spillover performs significantly positive role in manufacturing growth with less absorptive ability. The empirical analysis proved that technological spillover and imported technology have affirmative role in reducing amount of net Carbon emission over the long run. It is suggested that the firms should adopt innovative technologies and try to improve absorptive capacity while government must opt country specific policies to control negative externalities.

scholarly journals The Impact of Macroeconomic Factors on Manufacturing Sector Value Added in Ethiopia: An Application of Bounds Testing Approach to Cointegration

2020 ◽  
Vol 23 (1) ◽  
Author(s):  
Dagim Tadesse Bekele ◽  
Meskerem Teka Haile
Keyword(s):  
Exchange Rate ◽  
Time Series Data ◽  
Manufacturing Sector ◽  
Government Expenditure ◽  
Value Added ◽  
Series Data ◽  
Macroeconomic Variables ◽  
Long Run ◽  
The Impact ◽  
Bound Test

The role of the manufacturing sector for the economic growth and structural change is very low in Ethiopia and performing less compering with that of the other sectors in the economy. So, this research tried to look at how different macroeconomic variables affect the manufacturing sector value added by using annual time series data from 1982 to 2018 estimated by Autoregressive-Distributed Lag (ARDL). The result from the Bound test shows manufacturing sector value added has a long-run relationship with macroeconomic variables in the model. In the long-run, general inflation rate, exchange rate, and trade openness have a significant negative effect on the manufacturing sector value-added. In contrast, general government expenditure has a significant positive effect. Also, the Error Correction model shows an adjustment towards the long-run equilibrium of the manufacturing sector value-added. So, the government has to control the general inflation level, promote demand for domestic manufacturing products and competitiveness of domestic firms, and strengthen the backward link of the sector to decrease its import-input dependency to reduce the effect of exchange rate depressions. Lastly, effective and efficient government expenditure will have to be used to increase the manufacturing sector value-added.

scholarly journals An Econometric Validation of Malthusian Theory: Evidence in Nigeria

2018 ◽  
Vol 7 (1) ◽  
pp. 77-90
Author(s):  
Musa Abdullahi Sakanko ◽  
Joseph David
Keyword(s):  
Population Growth ◽  
Food Production ◽  
Time Series Data ◽  
Control Measure ◽  
Series Data ◽  
Long Run ◽  
Short Run ◽  
The Government ◽  
Bound Test ◽  
Malthusian Theory

Rising population is an asset, provided, the skills of the workforce are used to the maximum extent. If not appropriately channelized, it can be a liability for a nation. A skilled and hardworking population can emerge as a foundation for a country’s development. This study examines the validity of Malthusian Theory in Nigeria using time series data from 1960 to 2016, employs the ARDL bound test techniques. The result shows that in the long-run, population growth and food production move proportionately, while population growth poses a depleting effect on food production in the short-run, thus validating the incidence of Malthusian impact in Nigerian economy in the short-run. The researcher recommended the government should strategize plans, which will further intensify family planning and birth control measure, compulsory western education and revitalization of the agricultural sector.DOI: 10.150408/sjie.v7i1.6461

scholarly journals Climate Change Impact On Rice Production in Pakistan: An ARDL-Bounds Testing Approach to Cointegration

2018 ◽  
Author(s):  
Abbas Ali Chandio ◽  
Yuansheng Jiang ◽  
Habibullah Magsi
Keyword(s):  
Climate Change ◽  
Time Series Data ◽  
Rice Production ◽  
Series Data ◽  
Bounds Testing ◽  
Long Run ◽  
Short Run ◽  
Bounds Testing Approach ◽  
The Impact ◽  
Ardl Bounds Testing Approach

This research paper aims to examine the relationship between CO2, temperature, area, fertilizers and rice production in Pakistan. This study used Augmented Dickey Fuller (ADF) and Phillips Perron (PP) unit root tests to check the order of integration of each variable. The cointegration analysis with ARDL bounds testing approach is used to examine the impact of climate change on rice production in Pakistan over time series data from the period 1968 to 2014. The parameter stability test of the model is also checked at the end. The results of estimation show that the important variables of the study are cointegrated demonstrating the presence of long-run association among them. Furthermore, climate change factors, e.g. CO2 and temperature have a long-run and short-run positive effect on the production of rice in Pakistan. This present work is original and it is first time empirically tested the impact of climate change on rice production in Pakistan. The annual time series data of 47 years enhances the validity of the empirical findings. The most fruitful finding of this research is that rice production in Pakistan is positively influenced by emission of carbon dioxide (CO2) at 5 percent significance level in both long-run and short-run.

scholarly journals Macroeconomic variables and banking sector development: Evidence from Nigeria

2020 ◽  
Vol 8 ◽  
pp. 288-301
Author(s):  
Ojo Johnson Adelakun ◽  
Babatunde Afolabi ◽  
Uwasejike B Abuh
Keyword(s):  
Interest Rates ◽  
Money Supply ◽  
Banking Sector ◽  
Time Series Data ◽  
Oil Price ◽  
Series Data ◽  
Macroeconomic Variables ◽  
Long Run ◽  
Banking Sector Development ◽  
Bound Test

The study assessed the relationship between Macroeconomic Variables and Development in the Nigerian Banking Sector using annual time series data. Models were specified using Ratio of Credits to Private Sector to Gross Domestic Product (GDP) as a proxy for Banking Sector Development. At the same time, GDP growth rate, Poverty, Exchange Rate, Oil Price, Poverty, Money Supply, Inflation, and Interest rates were the selected Macroeconomic Variables used in the study. Data used were sourced from the Statistical Bulletin of Central Bank of Nigeria (CBN) for various editions and estimated using ARDL Bound Test and Vector Error Correction Mechanism (VECM). The study found that there exists a long-run relationship between Macroeconomic Variables selected and Banking Sector Development. The VECM coefficients revealed that all variables except Interest Rates have negative effects on Banking Sector Development. The VECM (-1), which showed the speed of adjustment, was rightly signed and significant, indicating a long-run causality relationship running from macroeconomic variables to banking sector development. The Impulse response from restricted VAR revealed that Banking Sector responded to the Macroeconomic Variables of which GDPGR and INT were transmitting negatively to Banking Sector Development while others were transmitting positive impulses. However, the variance decomposition found that oil price, followed by GDPGR and poverty, caused more variation in Banking Sector Development. In contrast, inflation and money supply caused the least variation in Banking Sector Development. The study, therefore, concluded that selected Macroeconomic Variables have a significant long-run relationship with Banking Sector Development. It is therefore recommended, among others that, Macroeconomic indicators should be well monitored and controlled using macroeconomic instruments promptly since when they are well managed would lead to a better developed Banking Sector in Nigeria.

scholarly journals The Relationship between Electric Power Consumption, Foreign Direct Investment and Economic Growth in Sri Lanka

2020 ◽  
pp. 21-31
Author(s):  
S. Maheswaranathan
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Sri Lanka ◽  
Direct Investment ◽  
Time Series Data ◽  
Empirical Finding ◽  
Electricity Consumption ◽  
Series Data ◽  
Long Run ◽  
Bound Test

Purpose: This paper investigates the long run relationship between electricity consumption, foreign direct investment and economic growth in Sri Lanka. Design/Methodology/Approach: The annual time series data over the period 1970–2017 is considered to this study. Augmented Dickey–Fuller (ADF) unit root analysis is employed for examining the stationary properties of the variables. Consequently, Autoregressive Distributed Lag (ARDL) analysis is employed to examining the short- run and long-run relationship between electricity consumption, foreign direct investment and economic growth in Sri Lanka. Further, this study used the diagnostic tests such as the residual normality test, heteroskedasticity and serial autocorrelation tests for misspecification to validate the parameter estimation outcomes achieved by the estimated model. CUSUM test is applied to test the stability of the model. Collected data were analyzed using STATA version 15. Findings: The findings of the bound test confirm that the variables are cointegrated. Further the results reveal that there is a statistically positive significant relationship between electricity consumption, foreign direct investment and economic growth in Sri Lanka in the long run and short term. The empirical finding reveals that one percent increase in electricity consumption and foreign direct investment increases the GDP by 1.5 percent and 12.9 percent in the long run respectively.

scholarly journals The Impact on Unemployment of Social Security Contributions: the Empiricial Analysis in Turkey

2017 ◽  
Vol 6 (1) ◽  
pp. 142
Author(s):  
Filiz Giray ◽  
Mehmet Çınar
Keyword(s):  
Social Security ◽  
Unemployment Rate ◽  
Time Series Data ◽  
Oecd Countries ◽  
Series Data ◽  
Macroeconomic Factors ◽  
Social Security Contributions ◽  
Long Run ◽  
The Impact ◽  
Bound Test

Social security contributions are important public incomes after taxes in OECD countries. Beside, social security contributions as a mean of the finance of social security system is a determiner on the main macroeconomic factors such as savings, employment, the cost of employment, the level of shadow economy, economic growth, competitiveness and income inequality. Employment has been important policy goals in Turkey like many OECD countries during recent decades. High unemployment rate is a serious problem for countries. Effecting negatively labor market, high burden of social security contributions causes low level of employment. The aim of this study is to find the relationship between social security contributions and unemployment for Turkey. Therefore, we can evaluate whether reducing social security contributions is a way reducing of unemployment or not. We use time series data during period 1965-2015. The research methodology is based on an analysis of indicators as unemployment rate, social security contributions as percentage of GDPs, the percentage of total tax revenues. Unit root test is non-stationary for social security contributions. On the other hand, unemployment is stationary for related period. The long run relationship between variables was tested by ARDL bound test approach. Based on the sample results, there is a long run cointegration between social security contributions and unemployment rate (both as percentage of GDP and percentage of taxation).

scholarly journals Economic Growth and Environmental Pollution in Brunei: ARDL Bounds Testing Approach to Cointegration

2019 ◽  
pp. 1-11
Author(s):  
Issa Moh’d Hemed ◽  
Suleiman Malik Faki ◽  
Salim Hamad Suleiman
Keyword(s):  
Economic Growth ◽  
Environmental Pollution ◽  
Time Series Data ◽  
Series Data ◽  
Kuznets Curve ◽  
Bounds Testing ◽  
Long Run ◽  
Short Run ◽  
The Government ◽  
Bound Test

Aims: This study examined the short run and long run dynamic relationship between economic growth and environmental pollution in Brunei. We adoptedAuto Regressive Distributed Lag (ARDL) model to scrutinize the existence of the Environmental Kuznets Curve (EKC) among the studying variables by using time series data cover the period of 1974 to 2014. Methodology: The ARDL bound test revealed the existence of long-run relationship among the integrated variables when CO2 chosen as a dependent variable. Results: The results support the existences of EKC hypotheses in the long-run whereas in the short-run an inverted U-shaped curve was not confirmed between GDP and CO2 in Brunei. The results of Granger causality based on VECM analysis have shown unidirectional causality runs from economic growth to CO2 in the short run. Further analysis through stability test indicates the coefficients in the model are stable and do not suffers with structural break within the time taken in the study. Conclusion: The government of Brunei should proceed to target the sustainable means of production, which has an environmental friendly and consumes less energy to enhance economic growth and maintain environmental quality in the long run.

Another Side of the Coin: Exchange Rate Movements and the Manufacturing Sector in Nigeria

2018 ◽  
Vol 10 (1-2) ◽  
pp. 63-79
Author(s):  
Anthony Orji ◽  
Jonathan E. Ogbuabor ◽  
Chiamaka Okeke ◽  
Onyinye I. Anthony-Orji
Keyword(s):  
Exchange Rate ◽  
Private Sector ◽  
Time Series Data ◽  
Capital Expenditure ◽  
Manufacturing Sector ◽  
Jel Classification ◽  
Least Square ◽  
Series Data ◽  
Long Run ◽  
The Impact

This study estimated the impact of exchange rate (EXCH) movements on the manufacturing sector in Nigeria over the period 1981–2016. Time series data and ordinary least square (OLS) estimation technique were employed in this study to address the specified objective. The variables analysed were EXCH, manufacturing GDP (MGDP), government capital expenditure, foreign direct investment (FDI), credit to private sector and value of imports. From the result, it is apparent that EXCH movements play a significant role in the manufacturing sector’s performance in Nigeria. Specifically, the findings showed that EXCH, government capital expenditure (GCEXP), imports and FDI were positively related to MGDP, while credit to private sector was negatively related. Among others, the study recommends that the apex bank keep a closer watch on EXCH developments in order to keep formulating up-to-date policies that will ultimately enhance EXCH stability. This will largely contribute to the development of the manufacturing sector in the short and long run. JEL Classification: D51, F31, Q24

scholarly journals Effects of Young and Ageing Population on Education Expenditure

2014 ◽  
Vol 2 (9) ◽  
pp. 86-105
Author(s):  
Nur Haiza Nordin ◽  
Normaz Wana Ismail ◽  
Nur Naddia Nordin
Keyword(s):  
Time Series Data ◽  
Negative Relationship ◽  
Series Data ◽  
Ageing Population ◽  
Young Population ◽  
Education Expenditure ◽  
China And India ◽  
Long Run ◽  
The Impact ◽  
Bound Test

The motivation of the study is to analyze the impact of young and ageing population on education expenditure in China and India as demographic projection forecast that the percentage of population in India are increasing overtime. The used of long time series data of China and India from 1970 to 2011 helps us to identify the long-run relationship between young and ageing population and education expenditure. The result of the bound test showed that there is a stable long-run relationship between young population and education expenditure, while ageing population is negative relationship with education expenditure. In fact, short-term and long-term result revealed that the young population influences education expenditure in China and India.

scholarly journals How far climate change affects the Indonesian paddy production and rice price volatility?

2017 ◽  
Vol 1 (1) ◽  
pp. 1 ◽  
Author(s):  
Silvia Sari Busnita, Rina Oktaviani, Tanti Novianti
Keyword(s):  
Climate Change ◽  
Time Series Data ◽  
Global Climate ◽  
Price Volatility ◽  
Series Data ◽  
Security Issue ◽  
Price Fluctuation ◽  
Long Run ◽  
Rice Price ◽  
The Impact

Food security issue after 2008 global-crisis is something relate with the climate change phenomenon which had worsened on the last few decades. The impact of global climate change can be seen from the fluctuation of main crops production yield in tropical countries. This has affected the food price fluctuations particularly on the grain price, both international and domestic markets. The rice-commodity, known for its thin market characteristics, is now also experiencing the fluctuation of production, its productivity and also the rice price. Considering the importance of rice as the main staple food in Indonesia, the purpose of this research is to identify the Indonesia’s rice price fluctuation (volatility) and to investigate how far climate change affects the Indonesian paddy production and rice price volatility. By applying monthly time-series data from 2007 to 2014, this research used ARCH-GARCH methods to find out the rice price volatility and VECM (Vector Error Correction Model) to investigate the impact of climate change phenomenon on the Indonesian paddy production, as well as rice price volatility both in the short-run and long-run. The result is important for the stakeholders and government in preventing the risk and uncertainty condition of paddy production and rice price fluctuation caused by climate change

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