The Corruption-Terrorism Nexus: A Panel Data Approach

<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>

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Revisiting Banking Stability Using a New Panel Cointegration Test

International Journal of Financial Studies ◽

10.3390/ijfs9020021 ◽

2021 ◽

Vol 9 (2) ◽

pp. 21

Author(s):

Hassan B. Ghassan ◽

Zakaria Boulanouar ◽

Kabir M. Hassan

Keyword(s):

Cross Section ◽

Serial Correlation ◽

Panel Cointegration ◽

Cointegration Test ◽

Current Version ◽

Medium Term ◽

Long Run ◽

Panel Cointegration Test ◽

Banking Stability ◽

Score Index

Using a new panel cointegration test that considers serial correlation and cross-section dependence on a mixed and heterogenous sample of Saudi banks, we revisit the cointegrating equation of the z-score index of banking stability. Our results show that even when we consider the cross-section dependency and serial correlation of the errors, there is a possibility of a long-run relationship, which holds in our sample of banks. Furthermore, in the medium term, we found some banks to be integrated, whereas others were non-cointegrated. We interpret this to suggest that some banks contribute to banking stability, whereas others do not. In other words, there exists at least one bank that acts as a destabilizer and the challenge for financial regulators is to identify which banks these are. However, the current version of the Hadri et al. test does not allow for the identification of the non-cointegrated banks. If the test was able to do that, the regulatory authorities would be able to develop corrective policies/measures specifically tailored to the non-cointegrated units.

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Panel Data Analysis of Financial Development, Trade Openness, and Economic Growth: Evidence from BRICS Countries

Emerging Economy Studies ◽

10.1177/2394901518767023 ◽

2018 ◽

Vol 4 (1) ◽

pp. 1-18 ◽

Cited By ~ 4

Author(s):

Ritu Rani ◽

Naresh Kumar

Keyword(s):

Economic Growth ◽

Trade Openness ◽

Panel Cointegration ◽

Least Square ◽

Cointegration Test ◽

Ordinary Least Square ◽

Brics Countries ◽

Long Run ◽

Panel Granger Causality ◽

Panel Cointegration Test

The purpose of this article is to investigate the possible cointegration and direction of causality between foreign direct investment (FDI) inflow, trade openness, and economic growth in BRICS countries using panel data from 1993 to 2015. Besides these variables, money supply and domestic credit (DC) to private players are also added in the model to examine the impact of financial openness on economic growth. The Pedroni’s panel cointegration test is used to examine the existence of long-run relationship, and coefficients of cointegration are examined by fully modified ordinary least square (FMOLS) and dynamic ordinary least square (DOLS). Further panel Granger causality test is used to examine the direction of causality among the competing variables. The results of Pedroni’s panel cointegration test indicate that there exists a long-run relationship among the variables under considerations in BRICS countries. The coefficient of FMOLS and DOLS indicates that trade openness has a positive impact on economic growth in BRICS countries while FDI inflow has a negative impact in these nations. In addition, the results of panel Granger causality confirmed bidirectional causality between FDI inflow and economic growth in the short run. The study recommends that BRICS countries should liberalize trade openness as it strengthens the position of member countries in the world economy.

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Investigating energy consumption and economic growth for BRICS-T countries

World Journal of Science Technology and Sustainable Development ◽

10.1108/wjstsd-12-2018-0063 ◽

2019 ◽

Vol 16 (4) ◽

pp. 184-195 ◽

Cited By ~ 3

Author(s):

Durmuş Çağrı Yıldırım ◽

Seda Yıldırım ◽

Isıl Demirtas

Keyword(s):

Economic Growth ◽

Energy Consumption ◽

Energy Savings ◽

Panel Cointegration ◽

Cointegration Test ◽

Real Output ◽

Content Type ◽

Natural Logarithm ◽

Panel Cointegration Test ◽

The Relationship

Purpose The purpose of this paper is to explore the relationship between energy consumption and economic growth for Brazil, Russia, China, India, South Africa and Turkey (BRICS-T) countries. In this context, this study investigates energy consumption and real output in BRICS-T countries through panel cointegration. Design/methodology/approach The data include energy consumption and real output for BRICS-T countries and period of 1990–2014. The variables are transformed into natural logarithm. To analyze these data, this study employed Pedroni cointegration test, the second-generation panel cointegration test, Westerlund and Edgerton (2008) test and FMOLS test. Findings Results indicate that there is a bi-directional causality relationship between energy consumption and economic growth for BRICS-T countries. An increase in GDP leads to an increase in energy consumption and an increase in energy consumption leads to an increase in GDP. Research limitations/implications This study used data that include the period of 1990–2014 for BRICS-T countries. So, further studies can use different periods of data or different countries. Originality/value This study provides important evidence that countries with strong growth performance need to follow bi-directional energy policies to increase both energy investments and ensure energy savings.

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PENGARUH STRUKTUR KEPEMILIKAN DAN STRUKTUR MODAL TERHADAP HARGA SAHAM

JURNAL AKUNTANSI DAN AUDITING ◽

10.14710/jaa.v14i2.19772 ◽

2018 ◽

Vol 14 (2) ◽

pp. 89

Author(s):

Rani Raharjanti ◽

Nur Setyowati

Keyword(s):

Stock Price ◽

Panel Cointegration ◽

Managerial Ownership ◽

Correction Model ◽

Vector Error Correction ◽

Vector Error ◽

Long Run ◽

Cointegration Tests ◽

Short Run ◽

Equity Ratio

This paper aims to investigate the short and long run behavior of ownership structure, capital structure and Indonesian Stock Price over the period from 2007 to 2016. To capture the long run relationships, we used the panel cointegration by Pedroni (1999, 2000, 2004), while the short run relationship are measured by Vector Error Correction Model (VECM). The main findings are as follows. First, the result of most results of Pedroni’s panel cointegration tests, suggest the null hypothesis of no cointegration is rejected. In consequence, this result suggests that there is a cointegration between stock price, managerial ownership, institutional ownership, public ownership, debt to equity ratio and earnings per share. Second, the results of VECM indicate that in the short run, only managerial ownership that will influence the stock price.

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Testing monetary exchange rate models with the Westerlund panel cointegration test

Economica ◽

10.47282/economica/2014/7/2/4345 ◽

2020 ◽

Vol 7 (2) ◽

pp. 172-179

Author(s):

Andrea Szabó

Keyword(s):

Time Series ◽

Exchange Rate ◽

Empirical Support ◽

Panel Cointegration ◽

Empirical Literature ◽

Long Run ◽

Cointegration Tests ◽

Panel Cointegration Test ◽

Exchange Rate Models ◽

Monetary Models

Time series testing of long-run monetary models of exchange rate determination in most cases fails to support the conjectures of the theory. The empirical literature increasingly uses the panel technique when testing monetary exchange rate models because the power of the panel unit root and panel cointegration tests seems higher than the pure time series tests. In this paper we examine the validity of the monetary exchange rate models over the period 1996Q1-2011Q4 for US dollar exchange rates of 15 OECD countries using Westerlund’s 2007 panel cointegration tests. We found moderate empirical support for monetary exchange rate models.

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

Review of Economic Analysis ◽

10.15353/rea.v10i3.1447 ◽

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.

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International reserves and governance: a comparative study for Colombia

Dimensión Empresarial ◽

10.15665/rde.v13i2.536 ◽

2015 ◽

Vol 13 (2) ◽

pp. 11-31

Author(s):

Jorge Mario Ortega

Keyword(s):

Emerging Economies ◽

Panel Cointegration ◽

Political Stability ◽

Risk Indicators ◽

International Reserves ◽

Legal Regime ◽

Governance Indicators ◽

Cointegration Tests ◽

World Governance Indicators ◽

The Relationship

This paper examines the relationship between the governance and the demand for international reserves in Emerging Economies (EE). The Database World Governance Indicators Project (Project WGI) available for the period 2002-2013 is employed. The main goal in this research is to examine the possible relationship between risk indicators and political stability, the strength of democratic institutions and legal regime to the accumulation of reserves in the EE in order to discern the matter to the Colombian case. Using panel data for 14 Emerging economies, it became clear how these variables of governance, the traditional determinants of the demand for international reserves and their level interrelate. The panel cointegration tests show the relationship between the behavior of political stability, strengthening of the institutions with the accumulation of international reserves of Colombia and other Emerging economies. The institutional characteristics such as corruption, political stability and violence can affect accumulation of reserves through the perception of uncertainty. The results suggest that in order to reduce the need to accumulate higher levels of reserves, Colombia could continue institutional strengthening so as to demand lower levels of reserves for precautionary reasons.

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International Tourism and Opportunities for Economic Development in India

Tourism and Opportunities for Economic Development in Asia - Advances in Hospitality, Tourism, and the Services Industry ◽

10.4018/978-1-5225-2078-8.ch003 ◽

2017 ◽

pp. 34-74

Author(s):

Manoj Kumar

Keyword(s):

Policy Making ◽

Positive Impact ◽

Panel Cointegration ◽

Cointegration Test ◽

International Tourism ◽

Demand Model ◽

Long Run ◽

International Tourist ◽

Panel Cointegration Test ◽

Relationship Of

This chapter sought to find the long-run relationships between international tourist arrivals in India with economic variables such as GDP, transportation costs and the exchange rate for the period from 2002-2015. The cointegration techniques used was based on Panel Cointegration Test as well as both the OLS estimator and DOLS estimators were used to find long-run relationship of the international tourism demand model for India. The long-run results indicate that growth in income (GDP) of India's major tourist source markets has a positive impact on international visitor arrivals to India. Finally when the value of India's currency strong than the value of these country's currency increasing 1% then the number of international visitor arrivals to India decreasing 0.003% to 0.006%. Furthermore mostly findings were consistent with economic theory and the implications of the model can be use for policy making.

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