Search

The migration of both unskilled and skilled labour force can alter economic conditions and environmental sustainability of both host and home countries. Consequently, this study endeavors to investigate the impact of skilled labour migration on economic growth, energy demand, and environmental sustainability of both home and host countries. This objective is achieved by constructing a multiregional computable general equilibrium model for developed and developing countries. Moreover, developing countries are classified into four distinct groups based on their income levels such as high income, upper middle income, lower middle‐income and low‐income countries. The outcome of policy simulations indicate that skilled labour migration diminishes the gross domestic product, welfare, energy consumption and carbon emissions in home countries, and the reverse is true for the host countries. The influx of remittances to home counties is shown to bolster their economic growth, energy consumption, and CO2 emissions, whereas a contrary trend in remittance outflow is observed in host countries. Likewise, reverse migration has the potential to augment economic growth in developing countries alongside an increase in energy demand and CO2 emissions. The study advocates for developed countries to harness the skills of immigrants in environment‐friendly manufacturing industries. Furthermore, it emphasizes that developing countries should utilise remittances for both socio‐economic and environmental development to retain the migration of skilled labour forces. [ABSTRACT FROM AUTHOR]

The Saudi Arabian economy heavily uses foreign labour and hence, ranks among the top countries not only in the Gulf Cooperation Council region, but also globally in terms of remittance outflows. This study develops a theoretical model to investigate the determinants of remittance outflows from Saudi Arabia. The cointegration and equilibrium correction methods, and adjustments for small sample bias, are applied to the data for 1970‐2021 using the theoretical model developed. In the long run, keeping other factors unchanged, Saudi Arabia's gross domestic and non‐Saudi employment have positive and statistically significant impacts on the remittance outflows, while the impacts of the price level and expatriate levy are negative and statically significant. This study's findings may be useful for macroeconomic policymaking, as the remittance outflows have numerous implications for the development of the Saudi economy. Particularly, remittances are a primary channel for leaking money from Saudi Arabia, reducing the economic growth effects of fiscal spending multipliers. [ABSTRACT FROM AUTHOR]

The world's climate‐related policies need to be revised to combat environmental issues. Therefore, adopting renewable energy technologies in conjunction with energy efficiency measures are needed to make safe pathways to reduce over 90% of energy related CO2. In this context, this study intends to assess the influence of foreign direct investment (FDI), economic growth, and banking and development on renewable energy consumption in South Africa from 1970 to 2020. The study uses a novel 'bootstrap Autoregressive Distributed Lag (ARDL)' testing to empirically analyse the short and long links among the tested variables. The ARDL estimations demonstrate a FDI and economic growth have positive effect on renewable energy consumption. Furthermore, the outcomes reveal that banking sector development affects positively renewable energy use in long run. Therefore, it is suggested that government and playmakers of South Africa must make more efforts to link the economic and baking development with renewable energy by investing capital and funds in renewable energy infrastructure. It will not only boost the economy of the country but also provide an opportunity to clean and green the environment with decreasing rate of greenhouse gases emission like carbon dioxide. [ABSTRACT FROM AUTHOR]

This study investigates the association among economic growth, sustainable energy consumption and carbon emission with additional variables including fossil fuel energy consumption, natural gas and trade openness. The annual time‐series data from 1972 to 2019 is analysed using an auto‐regressive distributive lag model. Moreover, the novelty and robustness of the model are verified using dynamic ordinary least squares, and fully modified ordinary least squares. The results specify that except carbon emission model equation, there is co‐integration exists among variables. In terms of the outcomes in the long term, the consumption of fossil fuels has a notable impact on economic growth and natural gas, whereas the consumption of sustainable energy has a detrimental effect on economic growth. Interestingly, in the short run, sustainable energy consumption positively links with trade openness and economic growth. Furthermore, the VECM‐based Granger Causality detects a one‐way causal linkage of fossil fuel consumption, trade openness, carbon emissions and natural gas with economic growth. A bidirectional causality exists from carbon emission to fossil fuel consumption, suggesting a feedback hypothesis. The study provides a comprehensive understanding of the underlying variables. The policymakers can make decisions for the efficient functioning of energy markets, enhanced production of energy‐from‐waste material and environmental enforcement in India related to air pollution should be strengthened. [ABSTRACT FROM AUTHOR]

Despite the growing literature on the causal association between electricity supply and economic growth, little is known about the causal linkage between electricity transmission and distributional losses and economic growth, particularly in Ghana. The paper studies the causal association between electricity transmission, distributional losses and economic growth in Ghana. Further, we interacted ETDL with electricity price to examine their combined impact on Ghana's gross domestic product. We utilised time series data from the period 1971 to 2014. Given that our data span is relatively shorter, we utilised the Toda and Yamamoto and Autoregressive distributed lag model (ARDL) methods. This is so because these time series approaches can produce efficient, reliable and eliminate spurious regression estimates even if the sample size is relatively short. Our ARDL estimates suggest that ETDL exert an adverse impact on economic growth while the Toda and Yamamoto estimates suggest that economic growth has a strong influence on ETDL and not the other way round, supporting the growth‐led energy hypothesis. Also, the interactive effect of ETDL and electricity prices on economic growth was negative and statistically significant. [ABSTRACT FROM AUTHOR]

Over the past decades, and since the first development plan in 1970, Saudi Arabia has controlled the stability of its economy through prudent fiscal policy and tight monetary policy. This study examines the impact of monetary volatility on real gross domestic product (GDP) growth in an oil-based economy from 1970 to 2018, using the Hodrick--Prescott filtering approach. Although standard methods such as GARCH are used to test volatility, the uniqueness of this study is that it tests the volatility of monetary policy using ordinary least squares (OLS), autoregressive distributed lag (ARDL) and IRF methods. We find that the standard deviation of the broad money supply and the real interest rate business cycle tends to have a negative impact on real growth in the short and long run, supporting the proposition that a high interest rate negatively affects real growth. We also document that the standard deviation of the real exchange rate business cycle has a positive (negative) effect on real growth in the short and long run and is not statistically significant. This suggests that the volatility of the real exchange rate does not affect real growth. Moreover, the magnitude of the volatility of the coefficients is lower in the long run than in the short run. To achieve sustainable economic growth, policy makers need to plan how to manage the volatility of the money supply and the interest rate in the short run and develop long- run strategies to manage volatility in the long run. To control monetary volatility, policymakers should also control government spending by dampening the volatility of oil prices, which ultimately affect the money supply and thus stable economic growth. [ABSTRACT FROM AUTHOR]

By adopting Westerlund's panel cointegration test, and the panel Granger, non‐causality test, this study investigates the long‐run and causal relationship between energy consumption and economic growth and energy transition in Africa. The test took into account cross‐sectional dependency for five African areas from 1990 to 2018. The models additionally contain labour and capital stocks to investigate causality and cointegration in the areas. The cross‐sectional dependency test shows that the African region sample is cross‐sectionally correlated. The panel cointegration test shows evidence of a long‐run relationship between economic growth, energy consumption, labour and capital stock in all areas. The non‐causality result shows a uni‐directional causality from economic growth to energy use. [ABSTRACT FROM AUTHOR]

This study exposes the potential role of financial development to determine economic growth and utilisation of energy. Moreover, it also identifies how information communication technology (ICT) moderates this relationship. By sampling a large range of data from 138 economies for the year 1980–2020, the current study employs the panel least square model to test the regression. The result reveals that economic growth and information communication technology have a positive significant impact on energy utilisation. Financial advancement has a direct significant effect on energy utilisation and economic growth. Similarly, the moderating role of ICT was also observed in the current analysis. The current analysis guides policymakers on the relevant role of financial development in improving the economic status and consumption of energy. The policymakers in these various countries should balance the connection between the supply and demand of energy to accomplish the sustained development of the economies. Furthermore, the analysis speaks about the significance of ICT in boosting energy consumption and gives an important policy recommendation regarding the role of ICT both in economic growth and energy utilisation. [ABSTRACT FROM AUTHOR]

The growing apprehension of global warming, greenhouse gas emissions and increasing use of fossil fuel due to emergent economic activity signifies that for the sustainability of the environment cleaner energy use is important. In the same pursuit, this study aims to examine the energy, environment and economic growth nexus of Bangladesh, incorporating both renewable and non‐renewable energy consumption with forest depletion. We have employed the Two‐Stage Least Square approach to avoid likely simultaneity bias and possible endogeneity of the variables arising from the ordinary least squares. Result postulates non‐renewable energy consumption and forest depletion have a significant impact on CO2 emission, whereas renewable energy shows no significant consequence. The issue which arises in this regard is that renewable energy consumption has not yet reached a stage from where it could play a substantial role in emission reduction of the country. Therefore, countries should adopt policies that would provide a conducive environment for affordable energy use. [ABSTRACT FROM AUTHOR]

This paper investigates the association among energy consumption, carbon‐dioxide emission, and India's economic growth along with supplemental variables including foreign direct investment, population density, inflation, and agricultural land. An autoregressive distributive lag model is applied over annual time‐series data from 1985 to 2019. Further, the robustness and novelty of the model are confirmed by applying fully modified ordinary‐least‐square, dynamic ordinary‐least‐square, canonical co‐integrating regression, variance decomposition, and impulse response function. The analysis results indicate that a cointegration association exists among variables. In the short run, the profound determinants of economic development are energy consumption, carbon‐dioxide emission, inflation, and agricultural land. In the long run, both inflation and agricultural land significantly negatively influence economic growth while carbon emission drives a positive impact. Interestingly, a one‐way Granger causality runs from economic growth towards energy consumption, carbon emission, and agricultural land. The new research presents a comprehensive understanding of economic growth indicators, aiding policymakers, and advancing existing literature. Consequently, as a recommendation, the policymakers should constitute explicit goals for renewable energy consumption to stimulate sustainable economic growth with carbon emission reduction. [ABSTRACT FROM AUTHOR]

This study investigated the impact of natural resources on economic growth among the Organization of the Petroleum Exporting Countries (OPEC) by controlling for institutional quality and financial development during the period 2008–2018. The study applied the recent generalised method of moment estimation method proposed by Kripfganz (2019, Generalized method of moments estimation of linear dynamic panel data models. London Stata Conference, pp. 1–128). The results revealed a negative and significant impact of natural resource rents on economic growth. However, oil rents showed a positive and statistically significant impact on economic growth. Similarly, institutional quality has been found to have positive and significant contribution to economic growth. Finally, financial development has also been found to have positive and significant impact on economic growth of the OPEC member countries. [ABSTRACT FROM AUTHOR]

This empirical study examines the causal links among renewable energy consumption (REC) and non‐renewable energy consumption (NREC) and economic growth in Germany, the UK and France between 1980 and 2019. To this purpose, we use two different approaches: Toda and Yamamoto (Journal of Econometrics, 66, 1995, 225) time causality test and Lemmens et al. (International Journal of Forecasting, 24, 2008, 414) frequency causality test. For UK and France, the results show no significant causality between Gross Domestic Product (GDP) and REC, which supports the neutrality hypothesis. Regarding NREC, similar findings are obtained. However, for Germany, the time approach indicates bi‐directional causality between REC and GDP, while the frequency approach shows uni‐directional causality from REC to GDP in the long‐run. Therefore, there is a consensus on the growth hypothesis in Germany. Furthermore, the frequency analysis displays also one way causal nexus running from Germany's GDP to NREC in long horizons. The policymakers in UK and France should take into account that renewables and energy conservation policies are neutral in respect to economic growth. As for Germany, measures of reducing NREC would not significantly damage GDP, and renewable energies promotion plan would be beneficial for economic growth. [ABSTRACT FROM AUTHOR]

This paper investigates the nexus between energy consumption and economic growth in Bangladesh over the period 1971–2018 using the autoregressive distributed lag (ARDL) approach to cointegration. The main contribution of this study is the inclusion of exogenous dynamic (globalisation) and endogenous factor (political risk indicator measured by political terror scale (PTS)) to the energy consumption–economic growth nexus. The study explores an energy consumption–economic growth nexus where globalisation and PTS have both positive and negative influences on this relationship in the short run and long run. The Toda–Yamamoto Granger causality test confirms the feedback hypothesis, that is bidirectional causal relationship between energy consumption and economic growth, and the result is further verified by the impulse response function. Therefore, policymakers should enhance the availability of energy for people and industries to continue the existing momentum of economic growth. Besides, the government should cautiously deal with both the globalisation and political risk issues about energy consumption–economic growth nexus in Bangladesh. [ABSTRACT FROM AUTHOR]

The mixed empirical findings from the previous studies that examined the impact of oil revenue on economic growth in oil‐rich countries have raised a lot of questions as to why oil revenue has not produced the expected growth effect in some of those countries. One of the factors responsible for such a phenomenon is the poor institutional quality that characterises some of these countries. Given this, this study investigates the role of institutional quality in oil revenue‐economic growth nexus in Nigeria over the period of 1984–2018. Using ARDL as an estimation method, our results show that, irrespective of the choice of oil revenue and economic growth variables, oil revenue is still indispensable to economic growth in the short run and the long run. However, interacting each of the institutional quality variables with real oil revenue and oil rents yields mixed empirical findings. Although some of the interacting variables produce positive effects on economic growth in both runs, the positive effect of some become insignificant and even turn negative in the robustness analysis. With the interaction of overall institutional quality index with oil revenue, oil revenue worsens economic growth in both runs. Given these results, it is suggested that government should improve institutional apparatuses in the country. [ABSTRACT FROM AUTHOR]

This study investigates the non‐linear impact of urban population, energy consumption and economic growth on carbon emissions in selected African economies, for the period 2005–2019. The investigation is conducted through the application of non‐linear panel smooth transition regression (PSTR) estimation technique. The results reveal a rejection of the null hypothesis of linearity, in favour of non‐linearity. The results provide evidence of the presence of environmental Kuznets curve (EKC). Energy consumption has a positive impact on carbon emissions in both regimes. An increase in urban population causes a reduction in carbon emissions. The study recommends that in an effort to accelerate economic growth, policymakers should implement policies aimed at achieving low carbon mechanisms, such as green infrastructure and renewable energy systems, which reduce energy consumption and greenhouse gas emissions. It is therefore important for the selected African economies to come up with programmes that increase awareness about the risk of carbon emissions. [ABSTRACT FROM AUTHOR]

Energy is the lifeblood of the global economy, a key input to almost all the goods and services of the modern world. The primary objective of this study is to examine the relationships between per capita energy consumption and per capita GDP in India from 1970–1971 to 2014–2015. The data analysis was conducted using the three‐stage Johnson cointegration, vector autoregression and Granger causality test. The results of the study documented that there was the presence of unidirectional causality running from per capita GDP to per capita energy consumption and the absence of a long‐term equilibrium relationship between per capita energy consumption and per capita GDP in India. More significantly, India has already demonstrated an impressive ability to develop, deploy, replicate and scale up innovative, market‐based approaches to energy efficiency. The country has an excellent basis for further energy efficiency policy innovation and market creation, including a strong community of non‐governmental organisations, research institutes and think tanks active in energy efficiency. [ABSTRACT FROM AUTHOR]

Industrialisation is a significant part of any country's economic development. This study discusses the relationship between industrialisation and carbon dioxide emissions for Asian economies. The industrialisation has a major impact on carbon emissions, but its relationship with the environment differs in various regions of Asia. The empirical results are obtained by models of panel regression, which divide a balanced panel dataset of 46 countries into five groups depending on their subregions over the period 1991–2017. The tests of panel cointegration estimation found a majority of the cointegrated variables and verified the long‐run relationship between the variables. The long‐run coefficients are estimated using a fully modified ordinary least‐squares (FMOLS) method, and results conclude that industrialisation has a positive impact on the carbon dioxide emissions in the long run. These findings reveal that various industrialisation development strategies should be pursued in a bid to reduce emissions, depending on the levels of economic growth. Based on the findings, some policy suggestions are proposed for Asian economies. [ABSTRACT FROM AUTHOR]

In contrast to the majority of studies which focus primarily on oil‐importing countries in describing the mechanism by which oil price shocks affect economic activities, this study focuses on oil‐exporting countries. Saudi Arabia is taken as a key example in considering two macroeconomic variables: economic growth and unemployment. This study examines changes in these variables in terms of the effects of two types of disturbances: demand and supply, following Blanchard and Quah's (American Economic Review 1989; 79: 655) approach. The findings of impulse response analysis and variance decomposition indicate that oil price shocks play a key role in the fluctuations in economic growth and unemployment in the Saudi economy. [ABSTRACT FROM AUTHOR]