Globalization and Economic Growth Revisited: A Bootstrap Panel Causality Test

2016 ◽  
Vol 1 (2) ◽  
Author(s):  
 Hsiao-Ping Chu ◽  
Tsangyao Chang ◽  
Tagi Sagafi-nejad
Keyword(s):  
Economic Growth ◽  
Oecd Countries ◽  
Policy Implications ◽  
Causality Test ◽  
Panel Causality ◽  
Empirical Results ◽  
Panel Granger Causality ◽  
The Us ◽  
Direction Of Causation ◽  
The Uk

This paper revisits the nature and direction of causation between globalization and economic growth in nine OECD countries and China by applying the bootstrap panel Granger causality test to the data over the period of 1981-2008. Empirical results support evidence on causality from globalization to economic growth for Netherlands and the UK; causality from economic growth to globalization in the US, neutrality for Australia, Belgium, Canada, France, Italy, and Japan. Based on the empirical results from this paper, we provide important policy implications for the OECD countries and China.

scholarly journals Revisit coal consumption, CO2 emissions and economic growth nexus in China and India using a newly developed bootstrap ARDL bound test

2017 ◽  
Vol 36 (3) ◽  
pp. 450-463 ◽  
Author(s):  
Feng-Li Lin ◽  
Roula Inglesi-Lotz ◽  
Tsangyao Chang
Keyword(s):  
Economic Growth ◽  
Granger Causality ◽  
Policy Implications ◽  
Coal Consumption ◽  
Causality Test ◽  
Ardl Model ◽  
Empirical Results ◽  
China And India ◽  
The Government ◽  
Bound Test

This study revisits coal consumption, CO2 emissions and economic growth nexus for both China and India using a newly developed Bootstrap ARDL model over the period of 1969–2015. Empirical results indicate no long-run relationship among these three variables for both China and India, and Granger causality test based on Bootstrap ARDL model indicates a feedback between coal consumption and economic growth, between economic growth and CO2 emissions and between coal consumption and CO2 emissions in China. However, we find a one-way Granger causality running from coal consumption to economic growth and the feedback hypothesis is confirmed between economic growth and CO2 emissions and between coal consumption and CO2 emissions in India. The coefficients signal that coal consumption is an important factor towards the promotion economic growth in both China and India. For China, higher economic growth reduces CO2 emissions, while for India, it further increases CO2 emissions. Our empirical results have important policy implications for the government conducting effective energy polices to promote economic growth in both China and India.

The Relationship Between R&D Expenditures and Economic Growth ın OECD Countries With Different Causality Tests

2020 ◽  
pp. 107-118
Author(s):  
Gökhan Karhan
Keyword(s):  
Economic Growth ◽  
Research And Development ◽  
Oecd Countries ◽  
Causality Test ◽  
Panel Causality ◽  
Rolling Window ◽  
Causality Tests ◽  
Mathematical Techniques ◽  
Rolling Windows ◽  
The Relationship

In this chapter, the relationship between research and development (R&D) expenditures and economic growth was investigated with both Emirmahmutoğlu and Köse Causality test and the Dimitrescu and Hurlin Panel Causality test based on Rolling Windows Regression for the selected 19 OECD member countries for the period 1996-2015. The results concluded that for all panel there is a causality from economic growth to R&D expenditures. In this study, the relationship between variables was investigated using different mathematical techniques like rolling windows. According to the results of the Dimitrescu and Hurlin Panel Causality Test based on Rolling Window Regression, which is applied differently from other studies in the literature, there was a causality from economic growth to R&D expenditures in 2010. In 2011, there was causality from R&D expenditures to economic growth for all panels.

scholarly journals Health Expenditure-Economic Growth Relationship in OECD Countries

2020 ◽  
Author(s):  
Mustafa Batuhan Tufaner ◽  
Fatma Dizge ◽  
Zeynep Emir
Keyword(s):  
Economic Growth ◽  
Developing Countries ◽  
Capital Accumulation ◽  
Health Expenditure ◽  
Health Expenditures ◽  
Oecd Countries ◽  
Causality Test ◽  
Cross Sectional ◽  
Panel Causality ◽  
The Relationship

Capital accumulation is one of the most important components of economic growth. Health expenditure is also one of the ways to increase capital accumulation and thus economic growth. Therefore, the relationship between health expenditure and economic growth is of great importance especially for developing countries. In this context, the relationship between health expenditures and economic growth was investigated for the period 2000-2016 and for 36 OECD countries. For this purpose, firstly unit root tests were performed in the study and then panel cointegration and panel causality tests were applied to determine the relationship between the two variables. Since there was a cross-sectional dependence in the variables, second-generation panel tests were used. As a result of the cointegration test, it is understood that there is no cointegration relationship between health expenditures and economic growth. The panel causality test revealed that there was no causality from health expenditures to economic growth, but there was a causality relationship from economic growth to health expenditures. Findings from the study show that health expenditure does not affect economic growth, but economic growth increases health expenditure in the short term. Therefore, it can be stated that developing countries have the advantage of time to increase the quality of health services.

scholarly journals Stock prices and economic activity nexus in OECD countries: new evidence from an asymmetric panel Granger causality test in the frequency domain

2021 ◽  
Vol 7 (1) ◽  
Author(s):  
Veli Yilanci ◽  
Onder Ozgur ◽  
Muhammed Sehid Gorus
Keyword(s):  
Frequency Domain ◽  
Granger Causality ◽  
Stock Prices ◽  
Economic Activity ◽  
Stock Price ◽  
Predictive Power ◽  
Oecd Countries ◽  
Causality Test ◽  
Asymmetric Shocks ◽  
Panel Granger Causality

AbstractThis study investigates the stock price–economic activity nexus in 12 member countries of the Organization for Economic Cooperation and Development (OECD) by employing monthly data over the period 1981:1–2018:3. For this purpose, the study uses Granger causality in the frequency domain in the panel setting by decomposing the symmetric and asymmetric fluctuations. This methodology determines whether the predictive power of interested variables is concentrated on quickly, moderately, or slowly fluctuating components. Our findings show that the stock prices have predictive power for future long-term economic activity in the panel setting. However, economic activity has more reliable information for stock prices for negative components. Additionally, empirical findings for asymmetric shocks are not fully consistent with those of symmetric ones. Besides, the country-specific results provide different causal linkages across members and frequencies. These findings may provide valuable information for policymakers to design proper and effective policies in OECD countries regarding the stock market and economic activity nexus.

Do Imports Increase Unemployment? Empirical Estimates That Are Not Model Dependent

2021 ◽  
Vol 16 (3) ◽  
pp. 447-469
Author(s):  
Jonathan E. Leightner ◽  
Keyword(s):  
Czech Republic ◽  
New Zealand ◽  
Theoretical Model ◽  
The Netherlands ◽  
South Korea ◽  
Trade Liberalization ◽  
Empirical Results ◽  
Empirical Estimates ◽  
The Us ◽  
The Uk

Some Ricardian models would predict a fall in unemployment with trade liberalization. In contrast, the Heckscher-Ohlin model (Stolper Samuelson Theorem) would predict trade liberalization would cause a fall in wages for labor scarce countries, resulting in greater unemployment if there are wage rigidities. The choice of which theoretical model is used affects the empirical results obtained. This paper produces estimates of the change in unemployment due to a change in imports that are not model dependent. The estimates produced are total derivatives that capture all the ways that imports and unemployment are correlated. I find that unemployment increases with increased imports for Austria, Greece, Japan, Portugal, South Korea, Slovenia, and Sweden, but that unemployment decreases with increased imports for Australia, Belgium, Canada, Czech Republic, Denmark, Estonia, Finland, France, Germany, Hungary, Ireland, Israel, Italy, Latvia, the Netherlands, New Zealand, Norway, Poland, Slovakia, Spain, the UK, and the US.

Conflict Risk and Defense Expenses and Their Impact on the Economic Growth

2021 ◽  
pp. 646-668
Author(s):  
Hasan Dinçer ◽  
Ümit Hacıoğlu ◽  
Serhat Yüksel
Keyword(s):  
Economic Growth ◽  
Emerging Countries ◽  
Annual Data ◽  
Negative Effects ◽  
Causality Test ◽  
Panel Causality ◽  
High Conflict ◽  
Emerging Country ◽  
Causality Relationship ◽  
Conflict Risk

The main purpose of this chapter is to identify the effects of conflict risk and defense expenses on economic growth. Within this scope, annual data of 17 emerging economies for the period between 1989 and 2014 were analyzed. In addition to this situation, Dumitrescu Hurlin panel causality test was taken into consideration in order to reach the objective. As a result of the analysis, it was determined that there is a causality relationship between conflict and defense expenses for these countries. This situation shows that emerging countries, which have high conflict risk, also increase defense expenses so as to minimize the negative effects of these conflicts. Additionally, it was also identified that economic growth is a significant reason of high defense expenses. In other words, it can be said that when the economy of an emerging country is developed, it gives more importance to defense expenses in order to take action for this conflict.

Renewable and non-renewable energy consumption and economic growth in the US: A Markov-Switching VAR analysis

2020 ◽  
pp. 0958305X2094403
Author(s):  
Emrah Ismail Cevik ◽  
Durmuş Çağrı Yıldırım ◽  
Sel Dibooglu
Keyword(s):  
Economic Growth ◽  
Renewable Energy ◽  
Energy Consumption ◽  
Energy Demand ◽  
Fossil Fuels ◽  
The United States ◽  
Renewable Energy Consumption ◽  
Causality Test ◽  
Long Run ◽  
The Us

We examine the relationship between renewable and non-renewable energy consumption and economic growth in the United States. While the regime-dependent Granger causality test results for the non-renewable energy consumption and economic growth suggest bi-directional causality in both regimes, we cannot validate any causality between renewable energy consumption and economic growth. The US meets its energy demand from non-renewable sources; as such, renewable energy consumption does not seem to affect economic growth. Given the efficiency and productivity of renewable energy investments, we conclude that it is worthwhile to consider renewable energy inputs to replace fossil fuels given potential benefits in terms of global warming and climate change concerns. In this regard, increasing the R&D investments in the renewable energy sectors, increases in productivity and profitability of renewable energy investments are likely to accrue benefits in the long run.

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