scholarly journals The Relationship between Corruption, Innovation and Economic Growth: Empirical Evidence from OECD Countries

2021 ◽  
Author(s):  
Fatma Ünlü
Keyword(s):  
Economic Growth ◽  
Growth Process ◽  
Panel Data Analysis ◽  
Panel Cointegration ◽  
Long Run ◽  
Cointegration Tests ◽  
Corruption Index ◽  
Innovation Capacity ◽  
Using Data ◽  
The Relationship

The phenomenon of corruption which has significant effects on the economic growth process and innovation capacity of countries is one of the frequently discussed topics especially in the economics literature in recent years. From this point, the purpose of this study is to contribute to determining the relationship between corruption, innovation, and economic growth. To achieve this purpose, panel data analysis is carried out using data from a total of 37 OECD members for the period 2007-2019. In this context, firstly unit root tests are performed, and then panel cointegration tests are employed to determine the long-term relationship between the variables. Long-run coefficients are estimated by using FMOLS and DOLS methods. The findings obtained from the analysis show that there is a cointegration relationship between corruption, innovation, and economic growth. Accordingly, corruption and innovation have a positive and significant impact on economic growth. In addition, the rise in the corruption index has a positive and significant effect on innovation. In other words, the increase in the corruption index (decrease in the perception of corruption) contributes positively to both innovation and economic growth process in the related countries.

Electricity consumption and economic growth in ASEAN

2017 ◽  
Vol 5 (2) ◽  
pp. 16
Author(s):  
Ahmad Ghazali Ismail ◽  
Arlinah Abd Rashid ◽  
Azlina Hanif
Keyword(s):  
Economic Growth ◽  
Energy Use ◽  
Electricity Consumption ◽  
Panel Estimation ◽  
Real Gdp ◽  
Long Run ◽  
Bidirectional Relationship ◽  
Short Run ◽  
Using Data ◽  
The Relationship

The relationship and causality direction between electricity consumption and economic growth is an important issue in the fields of energy economics and policies towards energy use. Extensive literatures has discussed the issue, but the array of findings provides anything but consensus on either the existence of relations or direction of causality between the variables. This study extends research in this area by studying the long-run and causal relations between economic growth, electricity consumption, labour and capital based on the neo-classical one sector aggregate production technology mode using data of electricity consumption and real GDP for ASEAN from the year 1983 to 2012. The analysis is conducted using advanced panel estimation approaches and found no causality in the short run while in the long-run, the results indicate that there are bidirectional relationship among variables. This study provides supplementary evidences of relationship between electricity consumption and economic growth in ASEAN.

scholarly journals The Corruption-Terrorism Nexus: A Panel Data Approach

2016 ◽  
Vol 8 (11) ◽  
pp. 111 ◽  
Author(s):  
Nahil Boussiga ◽  
Malek Ghdamsi
Keyword(s):  
Panel Cointegration ◽  
Political Stability ◽  
Cointegration Test ◽  
Correction Model ◽  
Major Threat ◽  
Long Run ◽  
Cointegration Tests ◽  
Panel Cointegration Test ◽  
The Relationship ◽  
Control Of Corruption

<p>Corruption has been increasingly recognized as the major threat to economic development, political stability and peace. It is also acknowledged by international community as the breeding ground for terrorism. This paper examines the relationship between corruption and terrorism in the long run. Previous studies examining the link between these two phenomena used only time series cointegration tests. In this paper, we make use of a dataset for a panel of 123 developed and developing countries over the period 2003-2014. We use Pedroni’s residual-based panel cointegration test and the error correction model-based panel cointegration test developed by Westerlund. In order to obtain more robust results, we use two different measures of corruption which are Corruption Perceptions Index (CPI) and Worldwide Control of Corruption Indicator (CC). The results of both tests reject the null hypothesis of no cointegration. we conclude that corruption and terrorism converge. Our findings corroborate results of previous studies.</p>

scholarly journals Education and Economic Growth in NER States of India: A Panel Cointegration Analysis

2018 ◽  
Vol 14 (2) ◽  
pp. 89-105
Author(s):  
Md. Samsur Jaman
Keyword(s):  
Economic Growth ◽  
Social Welfare ◽  
Panel Data Analysis ◽  
Panel Cointegration ◽  
Cointegration Analysis ◽  
Eastern Region ◽  
Social Sector ◽  
Long Run ◽  
North Eastern ◽  
Social Expenditures

The main purpose of this study is examines the long run relationship between social expenditures and economic growth in North-Eastern states of India. The long run impact of expenditures in social sector such as education, health and social welfare on economic growth is investigated by applying the Pedroni’s panel Cointegration using balanced panel data analysis of eight (8) North Eastern states over the period from 2000 to 2014. In this study empirical analysis suggest the existence of dynamic relationship among expenditures on education, health and social welfare and economic growth for all cases of eight sample states. The study concludes that expenditures in the social sector can affect economic growth. Such social expenditures enhance productivity by providing infrastructure, education, health and harmonizing social interests. Thus, expenditure composition can also play an important role in promoting economic growth in North-Eastern region.

scholarly journals Nexus Between Carbon Emissions, Energy Consumption, Urbanization and Economic Growth in Asia: Evidence From Common Correlated Effects Mean Group Estimator (CCEMG)

2021 ◽  
Vol 8 ◽  
Author(s):  
Yusuf Babatunde Adeneye ◽  
Amar Hisham Jaaffar ◽  
Chai Aun Ooi ◽  
Say Keat Ooi
Keyword(s):  
Economic Growth ◽  
Energy Consumption ◽  
Carbon Emission ◽  
Panel Cointegration ◽  
Energy Prices ◽  
Asian Countries ◽  
Cross Sectional ◽  
Long Run ◽  
Cointegration Tests ◽  
Common Correlated Effects

This study investigates the dynamic relationships between carbon emission, urbanization, energy consumption, and economic growth in a panel of 42 Asian countries for the period 2000–2014 using dynamic common correlated effects panel data modeling. This study employs second generation cross-sectional Pesaran (J. Appl. Econom., 2007, 22(2), 265-312) panel unit root, Westerlund panel cointegration tests (Econom. Stat., 2007, 69(6), 709-748), and Pesaran’s (Econometrica, 2006, 74(4), 967-1012) common correlated effects mean group estimation technique. These approaches allow for cross-sectional dependence, and are robust to the presence of common factors, serial correlation, and slope heterogeneity. The Common Correlated Effect Mean Group test reveals a high average coefficient of 0.602 between carbon emission and energy consumption while low coefficients of 0.114 and 0.184 for the pairs of carbon emission-urbanization and carbon emission-GDP, respectively for the panel as a whole, suggesting a cointegration between carbon emission, urbanization, energy consumption, and economic growth. The results indicate that there is relatively high carbon emission especially for highly populated and geopolitical risk Asian countries in the short run. Findings reveal long run relationships between the variables, which is attributed to the on-going carbon taxation and energy prices. Our results are robust to PMG-ARDL estimator. Overall, these findings cast important implications on renewable energy policy and urban planning insights for the policymakers.

scholarly journals Analysing the relationship between CO2 emissions and GDP in China: a fractional integration and cointegration approach

2021 ◽  
Vol 10 (1) ◽  
Author(s):  
Guglielmo Maria Caporale ◽  
Gloria Claudio-Quiroga ◽  
Luis A. Gil-Alana
Keyword(s):  
Economic Growth ◽  
Long Memory ◽  
Fractional Integration ◽  
Environmental Policies ◽  
Dynamic Processes ◽  
Standard Methods ◽  
Long Run ◽  
Equilibrium Relationship ◽  
Cointegration Tests ◽  
The Relationship

AbstractThis paper examines the relationship between the logarithms of carbon dioxide (CO2) emissions and real Gross Domestic Product (GDP) in China by applying fractional integration and cointegration methods. These are more general than the standard methods based on the dichotomy between stationary and non-stationary series, allow for a much wider variety of dynamic processes, and provide information about the persistence and long-memory properties of the series and thus on whether or not the effects of shocks are long-lived. The univariate results indicate that the two series are highly persistent, their orders of integration being around 2, whilst the cointegration tests (using both standard and fractional techniques) imply that there exists a long-run equilibrium relationship between the two variables in first differences, i.e. their growth rates are linked together in the long run. This suggests the need for environmental policies aimed at reducing emissions during periods of economic growth.

scholarly journals DYNAMICS OF EXPORTS, INFRASTRUCTURE, AND GROWTH IN GCC: VARS AND CAUSALITY TESTING

2021 ◽  
Vol 5 (2) ◽  
Author(s):  
Sufian Eltayeb Mohamed
Keyword(s):  
Economic Growth ◽  
Fixed Effects ◽  
Financial Institution ◽  
Random Effect ◽  
Random Effect Model ◽  
Panel Cointegration ◽  
Least Square ◽  
Public Expenditures ◽  
Long Run ◽  
Cointegration Tests

The paper is concerned with analyzing the dynamic effects of exports and infrastructure on GCC economic growth. Panel cointegration methodology is used to test for the existence of a long relationship between the variable. Two tests, Kao (1999) and Johansen cointegration tests are applied to check for cointegration. The results of the two tests reveal that there exists a long run co-integrating relationship between export and infrastructure proxies and economic growth in GCC countries. Additionally, fully modified least square (FMOLS) and dynamic ordinary least square (DOLS) were used to test the magnitude of the long relationship among variables. The results show that export and infrastructure variables are positive and have significant impact on the long run growth of the GCC economy. Further, fixed –effects method is selected as random effect model is rejected based on Hausman test result. The results of fixed effect show that export and infrastructure variables ate positive and statistically significant. With regard to policy, variable mixed results were obtained. As a policy recommendation the study, suggest that proper absorptive capacity such as deep financial institution, good infrastructure quality and supplementing public expenditures should be met in order to maximize the benefits of exports. JEL: C33; O11; F10; O19; O47 <p> </p><p><strong> Article visualizations:</strong></p><p><img src="/-counters-/edu_01/0875/a.php" alt="Hit counter" /></p>

scholarly journals The Differential Impact of Financial Intermediation on Economic Growth in Oil-Dependent Economies

2018 ◽  
Vol 10 (3) ◽  
pp. 267-284
Author(s):  
Anthony Anyanwu ◽  
Christopher Gan ◽  
Baiding Hu
Keyword(s):  
Economic Growth ◽  
Panel Cointegration ◽  
Bank Credit ◽  
Gdp Per Capita ◽  
Differential Impact ◽  
Pooled Mean Group ◽  
Long Run ◽  
Panel Cointegration Test ◽  
Per Capita ◽  
The Relationship

This paper analyses the relationship between bank credit and economic growth. We extend existing literature by treating separately the oil and non-oil sectors of 28 oil-dependent economies from 1990-2012. We employ panel cointegration and pooled mean group estimation techniques which are appropriate for drawing conclusions from dynamic heterogenous panels. The results of the panel cointegration test indicate that bank credit has no significant long-run relationship with non-oil GDP per capita. The results of the pooled mean group estimator reveal no significant long-run impact of bank credit on non-oil GDP per capita. Overall results suggest that banks do not yet provide adequate credit to stimulate non-oil economic growth. The policy implication of our findings is that the financial sector should be more involved in productive investment activities to promote inclusive growth.

scholarly journals Economic growth and quality of institutions in 27 postsocialist economies

2020 ◽  
Vol 47 (4) ◽  
pp. 769-787
Author(s):  
Constantinos Alexiou ◽  
Sofoklis Vogiazas ◽  
Nikita Solovev
Keyword(s):  
Economic Growth ◽  
Panel Cointegration ◽  
Institutional Quality ◽  
Supporting Evidence ◽  
Causality Analysis ◽  
Content Type ◽  
Long Run ◽  
Quality Of Institutions ◽  
The Relationship

PurposeThe relationship between institutional quality and economic growth is revisited.Design/methodology/approachA panel cointegration methodology and causality analysis are applied to 27 postsocialist economies over the period from 1996 to 2016.FindingsUtilizing the Worldwide Governance Indicators as a means of assessing the quality of institutions, it is found that in the long run, economic growth is positively associated with the rule of law and voice and accountability. In the short run, regulatory quality retains a positive effect, but voice and accountability demonstrate a puzzling negative effect on economic growth that merits further analysis. In exploring the causal dimension of our variables, supporting evidence of the strong links between the quality of institutions and economic growth is provided, hence rendering robust results.Originality/valueTo the best of the authors’ knowledge, it is the first time that an ARDL methodological framework, which addresses potential endogeneity issues, is used to investigate the relationship between institutional quality and growth in the context of postsocialist economies.

THE NEXUS AMONG TOURISM, URBANISATION AND CO2 EMISSIONS IN SOUTH ASIA: A PANEL ANALYSIS

2021 ◽  
Vol 27 (1) ◽  
pp. 63-82
Author(s):  
Sakib Bin Amin ◽  
Mahnaz Aftabi Atique
Keyword(s):  
South Asia ◽  
Co2 Emissions ◽  
Panel Data Analysis ◽  
Panel Cointegration ◽  
Annual Data ◽  
Causality Test ◽  
Environmentally Sustainable ◽  
Long Run ◽  
Cointegration Tests ◽  
Determinants Of Economic Growth

Purpose – Tourism and urbanisation are two significant determinants of economic growth and have been identified as top contributors to CO2 emissions. We examine the nexus among tourism, urbanisation, and CO2 emissions in South Asia by providing empirical evidence using panel data analysis. Design – Annual data from 1995-2019 is collected from the World Development Indicator 2020 for five South Asian countries: Bangladesh, India, Sri Lanka, Nepal, and Pakistan. Methodology – Durbin-Hausman panel cointegration and LM Bootstrap panel cointegration tests are conducted to check long-run cointegration. Dumitrescu-Hurlin panel causality test is used to detect causal relationship among the variables. Moreover, the PDOLS, PMG ARDL, c-up FMOLS and Generalised Linear Model are used to estimate long-run coefficients of the variables. Findings – We reveal unidirectional causalities running from urbanisation to tourism, urbanisation to CO2 emissions, and tourism to CO2 emissions. Additionally, when heterogeneity of the variables is taken into account, both tourism and urbanisation show positive and significant effect on CO2 emissions in the long-run. Originality of the Research – To our knowledge, no previous study investigates the relationship among tourism, urbanisation and CO2 emissions is South Asia. Our results will guide policy makers to design policies that will promote urbanisation and tourism growth in an environmentally sustainable way.

scholarly journals The nexus between external debt, corruption and economic growth: evidence from five SSA countries

2018 ◽  
Vol 9 (3) ◽  
pp. 319-334 ◽  
Author(s):  
Waliu Olawale Shittu ◽  
Sallahuddin Hassan ◽  
Muhammad Atif Nawaz
Keyword(s):  
Economic Growth ◽  
External Debt ◽  
Negative Relationship ◽  
Panel Cointegration ◽  
Causality Test ◽  
Content Type ◽  
Long Run ◽  
Cointegration Tests ◽  
The Impact ◽  
Ssa Countries

Purpose The purpose of this paper is to examine the impact of external debt and corruption on economic growth in the selected five Sub-Saharan African (SSA) countries, from 1990 to 2015. Design/methodology/approach Panel unit root and panel cointegration tests are employed to test for stationarity of the series and the long-run relationship, respectively. Fully modified OLS and dynamic OLS techniques are also employed to examine the long-run coefficients of the variables of the model, as well as panel Granger causality test, in order to examine the direction of causality among the variables. Findings The results indicate that there is a negative relationship between external debt and economic growth, as well as a bi-directional causality between the two variables. The findings also indicate a positive relationship between corruption and economic growth, as well as a uni-directional causality running from economic growth through corruption. Research limitations/implications The study recommends that the governments of the selected countries should address the menace of rising external debt through the adoption of other sources of capital for investment. Such include more openness of the economy for more capital, by easing restrictions on genuine imports and exports of valuable goods and services. It also suggests that the issue of corruption be tackled head-on, by such penalties that tend to make corruption less attractive. Originality/value While the relationship between economic growth and external debt, on the one hand, and corruption and economic growth, on the other hand, have received considerable attentions, the trio of external debt, corruption and economic growth have not been found combined in a model, to the best of the authors’ knowledge. Also, the countries under consideration, who jointly account for about 47 percent of the entire SSA countries’ stock of external debt, have not been jointly found in any recent panel studies involving the selected variables.

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