THE DYNAMIC IMPACTS OF FINANCIAL DEVELOPMENT AND HUMAN CAPITAL ON CO2 EMISSION INTENSITY IN CHINA: AN ARDL APPROACH

This paper studies the dynamic impacts of financial development, human capital, and economic growth on CO2 emission intensity in China for the period 1978–2015, with a structural breakpoint in 1992, by employing an autoregressive distributed lag (ARDL) approach. The estimations show that there exists a long-run cointegration linkage among the variables, with three main findings. First, financial openness measured by net FDI inflows can significantly reduce CO2 emission intensity in both the short-term and the long-term, whereas the effects of both financial scale and financial efficiency are limited and insignificant. Second, there exists an inverted N-shaped relationship between human capital and CO2 emission intensity: improving human capital first decreases CO2 emission intensity (before 1992), then increases it in the short-run (after 1992), and, finally, lessens it in the long-run. Last, raising per capita income can also significantly lower CO2 emission intensity in the long-run. Accordingly, some policy implications are also discussed.

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Do Migrant Remittances Spur Financial Development in Pakistan?evidence From Linear and Nonlinear Ardl Approach

Review of Economics and Development Studies ◽

10.26710/reads.v5i4.905 ◽

2020 ◽

Vol 5 (4) ◽

Cited By ~ 1

Author(s):

Muhammad Faheem ◽

Azali Mohamed ◽

Fatima Farooq ◽

Sajid Ali

Keyword(s):

Financial Development ◽

Asymmetric Effect ◽

Distributed Lag ◽

Nonlinear Ardl ◽

Real Gdp ◽

Long Run ◽

Potential Gain ◽

Ardl Approach ◽

Migrant Remittances ◽

Bound Test

The study asseses the influence of migrant remittances on financial development over the period of 1976-2018 in Pakistan. This study has applied the linear autoregressive distributive lag (ARDL) model and nonlinear autoregressie distributed lag (NARDL) model to check the symmetric and asymmetric effect of remittances. Results of the ARDL and NARDL bound test confirm remittances, FDI, real GDP and inflation significantly contributing to financial development. The outcomes of ARDL and NARDL have also confirmed the significant positive effect of migrant remittances on financial development in long-run. The asymmetric ARDL results show the existence of remittances nonlinear effect on financial development. Specifically, the study found remittances decrease have a significant impact while remittances increase have no any significant effect on financial development. Based on findings, this study recommends the plan for the policymakers of recipient countries, especially Pakistan, could harvest the potential gain of migrant remittances though positive asymmetric association with financial sector development.

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The Impacts of Non-Renewable Energy Consumption and Education Expenditure on CO2 Emission Intensity of Real GDP in China

10.21203/rs.3.rs-233481/v1 ◽

2021 ◽

Author(s):

He Huang ◽

Qiushi Deng ◽

Liang Li

Keyword(s):

Renewable Energy ◽

Energy Consumption ◽

Emission Intensity ◽

Co2 Emission ◽

Education Expenditure ◽

Renewable Energy Consumption ◽

Real Gdp ◽

Long Run ◽

Co2 Intensity ◽

Co2 Emission Intensity

Abstract BackgroundWith the economic development, China has become the world's largest CO2 emitter. Given that climate warming has increasingly become the focus of the international community, Chinese government committed to reducing its CO2 emission intensity substantially. Prior studies find that the evolution of economic structure and technological progress can reduce CO2 emissions, but lack of considering CO2 emissions and output as a whole. In addition, the role of education expenditure is relatively overlooked. This paper contributes to the literature by examining the link of CO2 emission intensity, non-renewable energy consumption and education expenditure in China during 1971-2014. ResultsWe use the ARDL approach and find that in the long run, every 1% increase in non-renewable energy consumption results in a 0.92% increase in CO2 intensity, while every 1% increase in operational education expenditure reduces the CO2 intensity by 0.86%. In the short term, 36% of the deviation from the long run equilibrium is corrected in the next period.ConclusionsWe draw out two important conclusions and make important policy recommendations. First and foremost, as long as the increase in operational educational expenditure exceeds the increase in non-renewable energy consumption, CO2 intensity of real GDP will decrease in the long run. This means that in the development stage when economic activities are still highly dependent on non-renewable energy sources, the Chinese government should continue to vigorously increase expenditures on public education. Second, the increase in non-renewable energy consumption will result in an increase in CO2 intensity of real GDP. Therefore, gradually increasing the proportion of clean energy consumption in the energy nexus is another powerful starting point for China to achieve its goal of reducing CO2 intensity of real GDP.JEL ClassificationC32. I2. Q4. Q53. Q56.

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On the Evolutionary Interplay Between Remittances, Financial Development, and Economic Growth

Advances in Educational Marketing, Administration, and Leadership - Intergenerational Governance and Leadership in the Corporate World ◽

10.4018/978-1-5225-8003-4.ch004 ◽

2019 ◽

pp. 78-96

Author(s):

Ramzi Fahrani ◽

Azza Béjaoui

Keyword(s):

Economic Growth ◽

Financial Development ◽

Data Series ◽

Distributed Lag ◽

Autoregressive Distributed Lag ◽

Long Run ◽

Ardl Approach ◽

Stable Economy ◽

Relationship Of ◽

The Impact

In this chapter, the authors attempt to investigate the interaction between remittances and financial development and its impact on the economic growth over the period 1980-2016. In this respect, they apply the autoregressive distributed lag bound test (ARDL) approach on cross-country of data series from 1980 to 2016 to study the short- and long-run relationship of remittances and financial development with economic growth. The empirical results show that the direct effects of shipments on growth are significant. On the other hand, the impact of remittances on economic seems to be more significant by means of the financial development. It also shows that these shipments are more efficient in the case of a less developed informal sector, a politically stable economy, and a developed financial structure.

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The Role of Financial Development in Economic Growth of Nepal: ARDL Approach of Cointegration with Structural Break Analysis

Journal of Economics and Business ◽

10.31014/aior.1992.03.04.287 ◽

2020 ◽

Vol 3 (4) ◽

Author(s):

Ramesh C. Paudel ◽

Keyword(s):

Economic Growth ◽

Financial Development ◽

Time Series Data ◽

Financial Institution ◽

Structural Break ◽

Series Data ◽

Distributed Lag ◽

Long Run ◽

Ardl Approach

This paper, using the most recent index of financial development as developed in Svirydzenka (2016), examines the role of financial development in the economic growth of Nepal. This paper employs the Autoregressive distributed lag (ARDL) approach of cointegration with the structural break in time series data for the period of 1980-2017. Nepal is a unique country with a population of about 30 million with high demographic dividend and big markets in the neighbours, the earlier entrant in the liberalization and reform in the region, endowed with lots of natural resources and beauties, and comparatively cheaper labor force in the region but it remains as one of the poor landlocked developing countries sandwiched between two emerging economies, namely China and India. The results show that financial development has a strong long-run positive relationship with economic growth. Therefore, developing the strategies for the proper financial development improving the financial institution quality and widening the financial market to improve capital formation would be a way to accelerate the economic growth in Nepal.

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Assessing the effect of climate change and financial development on agricultural production in ASEAN-4: The role of renewable energy, institutional quality and human capital as moderators

10.21203/rs.3.rs-760373/v1 ◽

2021 ◽

Author(s):

Abbas Ali Chandio ◽

Muhammad Ibrahim Shah ◽

Narayan Sethi ◽

Zulqarnain Mushtaq

Keyword(s):

Climate Change ◽

Human Capital ◽

Renewable Energy ◽

Financial Development ◽

Agricultural Production ◽

Energy Use ◽

Agricultural Sector ◽

Institutional Quality ◽

Distributed Lag ◽

Long Run

Abstract This study utilizes the data of ASEAN-4 nations, namely Indonesia, Malaysia, Philippines, and Thailand, to examine how climate change, renewable energy, human capital, institutional quality as well as financial development affect the agricultural production. Since shocks in one country can easily affect another country of this region, the second generation modelling techniques are utilized to prove the relationship among the variables of interest. Findings from the Westerlund (2007) cointegration test confirms long run relationship among the variables. The result from Cross-sectionally augmented autoregressive distributed lag (CS-ARDL) model reveals that climate change negatively affects the agricultural production, renewable energy, human capital, institutional quality positively affects the agricultural production. Moreover, renewable energy use, human capital and intuitional quality moderates the effect of carbon emission on agricultural production. In addition, a U shaped relationship between financial development and agricultural production is discovered, suggesting that financial development can promote production in the agricultural sector only after reaching a certain threshold. Finally, some policy recommendations are provided for the ASEAN-4 countries.

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Financial Development and Energy Consumption Nexus in Malaysia: A Multivariate Time Series Analysis

10.31219/osf.io/tdh8k ◽

2019 ◽

Author(s):

Faridul Islam ◽

Muhammad Shahbaz ◽

Ashraf U. Ahmed ◽

Md. Mahmudul Alam

Keyword(s):

Economic Growth ◽

Energy Consumption ◽

Financial Development ◽

Multivariate Time Series ◽

Policy Implications ◽

Energy Relation ◽

Emerging Nations ◽

Distributed Lag ◽

Long Run ◽

Growing Economy

Despite a bourgeoning literature on the existence of a long-run relationship between energy consumption and economic growth, the findings have failed to establish clearly the direction of causation. A growing economy needs more energy, which is exacerbated by growing population. Evidence suggests that financial development can reduce overall energy consumption by achieving energy efficiency. Economic growth and energy consumption in Malaysia have been rising in tandem over the past several years. The three public policy objectives of Malaysia are: economic progress, population growth and financial development. It is of interest to the policymakers to understand the dynamic interrelation among the stated objectives. The paper implements Auto Regressive Distributed Lag (ARDL) approach to cointegration to examine the existence of a long-run relationship among the series: energy consumption, population, aggregate production, and financial development for Malaysia; and tests for Granger causality within the Vector Error Correction Model (VECM). The results suggest that energy consumption is influenced by economic growth and financial development, both in the short and the long-run, but the population-energy relation holds only in the long run. The findings have important policy implications for balancing economic growth vis-à-vis energy consumption for Malaysia, as well as other emerging nations.

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Fish Exports and Economic Growth: The Pakistan’s Experience

Global Business Review ◽

10.1177/0972150918825422 ◽

2019 ◽

Vol 20 (2) ◽

pp. 279-296 ◽

Cited By ~ 1

Author(s):

Syed Tehseen Jawaid ◽

Mohammad Haris Siddiqui ◽

Zeeshan Atiq ◽

Usman Azhar

Keyword(s):

Economic Growth ◽

Time Series Data ◽

Positive Impact ◽

Impulse Response Function ◽

Policy Implications ◽

Sensitivity Analyses ◽

Series Data ◽

Distributed Lag ◽

Long Run ◽

Short Run

This study attempts to explore first time ever the relationship between fish exports and economic growth of Pakistan by employing annual time series data for the period 1974–2013. Autoregressive distributed lag and Johansen and Juselius cointegration results confirm the existence of a positive long-run relationship among the variables. Further, the error correction model reveals that no immediate or short-run relationship exists between fish exports and economic growth. Different sensitivity analyses indicate that initial results are robust. Rolling window analysis has been applied to identify the yearly behaviour of fish exports, and it remains negative from 1979 to 1982, 1984 to 1988, 1993 to 1999, 2004 and from 2010 to 2013, and it shows positive impact from 1989 to 1992, 2000 to 2003 and from 2005 to 2009. Furthermore, the variance decomposition method and impulse response function suggest the bidirectional causal relationship between fish exports and economic growth. The findings are beneficial for policymakers in the area of export planning. This study also provides some policy implications in the final section.

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Examining the driving forces for improving China’s CO2 emission intensity using the decomposing method

Applied Energy ◽

10.1016/j.apenergy.2011.05.042 ◽

2011 ◽

Vol 88 (12) ◽

pp. 4496-4504 ◽

Cited By ~ 100

Author(s):

Zhongfu Tan ◽

Li Li ◽

Jianjun Wang ◽

Jianhui Wang

Keyword(s):

Emission Intensity ◽

Co2 Emission ◽

Driving Forces ◽

Co2 Emission Intensity

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The relationship between financial development and economic growth in Eswatini (formerly Swaziland)

African Journal of Economic and Management Studies ◽

10.1108/ajems-06-2021-0291 ◽

2021 ◽

Vol ahead-of-print (ahead-of-print) ◽

Author(s):

Siphe-okuhle Fakudze ◽

Asrat Tsegaye ◽

Kin Sibanda

Keyword(s):

Economic Growth ◽

Granger Causality ◽

Financial Development ◽

Granger Causality Test ◽

Causality Test ◽

Content Type ◽

Distributed Lag ◽

Long Run ◽

Short Run ◽

The Relationship

PurposeThe paper examined the relationship between financial development and economic growth for the period 1996 to 2018 in Eswatini.Design/methodology/approachThe Autoregressive Distributed Lag bounds test (ARDL) was employed to determine the long-run and short-run dynamics of the link between the variables of interest. The Granger causality test was also performed to establish the direction of causality between financial development and economic growth.FindingsThe ARDL results revealed that there is a long-run relationship between financial development and economic growth. The Granger causality test revealed bidirectional causality between money supply and economic growth, and unidirectional causality running from economic growth to financial development. The results highlight that economic growth exerts a positive and significant influence on financial development, validating the demand following hypothesis in Eswatini.Practical implicationsPolicymakers should formulate policies that aims to engineer more economic growth. The policies should strike a balance between deploying funds necessary to stimulate investment and enhancing productivity in order to enliven economic growth in Eswatini.Originality/valueThe study investigates the finance-growth linkage using time series analysis. It determines the long-run and short-run dynamics of this relationship and examines the Granger causality outcomes.

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