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Energy is pivotal for sustainable economic growth. Undoubtedly, the role of the composition of the export basket (measured as economic complexity) is one of the crucial variables influencing energy consumption. Despite its importance, the existing body of literature does not intensively study the relationship between economic complexity and total energy consumption. Therefore, this study's primary aim was to examine the effect of economic complexity on energy consumption in a case study of 21 developed and 44 developing countries for the period 1971–2014. In this context, economic complexity expresses the level of sophistication of a country's export basket. This paper considers energy prices and income as explanatory variables in Durbin‐H panel cointegration analysis and applies a cointegration test with structural breaks to check for the long‐run relationships. For the long‐run estimations, we employ the augmented mean group method and dynamic seemingly unrelated regression. The findings reveal that economic complexity increases energy consumption in developing countries while it decreases energy consumption in developed countries. This is an important insight for countries concerned about their energy dependence. The diversification of their production and export baskets can reduce energy needs. The paper finally presents policy recommendations based on the empirical estimates. [ABSTRACT FROM AUTHOR]

Using modern panel cointegration estimation techniques, this paper examines whether tertiary student flows can effectively transmit technological knowledge from industrialized countries to African countries. The results obtained lend strong support to this hypothesis. In addition, this paper extends the analysis to include institutional variables such as the ease of doing business, legal origins, and religious majority to see if institutional characteristics have any impact on the way knowledge diffusion affecting total factor productivity (TFP). However, it is not clear that institutional differences are important factors that influence the degree of R&D spillovers and, hence, the TFP of African countries. [ABSTRACT FROM AUTHOR]

This paper examines the long-run relationship between financial globalization and economic growth in sub-Saharan Africa using panel unit root tests, panel cointegration tests and panel multivariate ECM. The study finds that the variables are stationary at first difference - I(1). Also, the results reveal that all the variables are cointegrated, that is, they are related in the long run. The results of the ECT test within the framework of panel multivariate ECM confirm the cointegration tests. The paper concludes that there is a long-run relationship between financial globalization and economic growth in sub-Saharan Africa. The paper argues that sub-Saharan African economies will benefit from the era of financial globalization in the long run in as much as the governments promote and encourage sound macroeconomic policies and strong institutions. [ABSTRACT FROM AUTHOR]

This paper uses empirical evidence to examine the causality relationship between electricity consumption and economic growth in OPEC countries by using annual data (1980-2011); this paper also utilises the panel cointegration and panel-based error correction approach models and framework. To the best of the authors' knowledge, most of the studies in this field have applied the error correction models, auto regressive distributed lag and panel data based on fixed-effect model in which coefficients obtained by these models cannot be deemed as a general finding applicable for other countries. The superiority of our article is in applying full modified ordinary least square estimation method for heterogeneous panels; our study also has stable and consistent coefficients and is also a dynamic model. Moreover, with regard to previous studies, our paper includes more countries which increase the reliability of the results. The results indicate that a long-run relationship exists between real gross domestic product ( GDP), electricity consumption and trade activities that involve export and import (control variable). The short-run results also indicate the importance of electricity consumption to economic growth and vice versa, supporting the feedback hypothesis which asserts that energy policies oriented towards improvements in electricity consumption efficiency would not adversely affect real GDP. It also apears that policies for energy efficiency have no statistically significant impact on economic growth in long run. [ABSTRACT FROM AUTHOR]

The aim of this paper is to examine the long-run and short-run relationship between tourism, real effective exchange rate and economic growth in Croatia. The econometric framework used for analysis is the Johansen Maximum Likelihood cointegration technique. For testing the stability of long-run equilibrium relationship vector error correction model technique has been applied on a quarterly data set covering the period 1996-2013. The main findings of the paper confirm the stability of the long-run equilibrium relationship between tourist arrivals (ARRIVAL), openness of the economy (OPEN) and real effective exchange rate as independent variable and gross domestic product (GDP) as dependent variable in Croatia. Furthermore, the results indicate short-run causality between OPEN and GDP, as well as between real effective exchange rate and GDP. Copyright © 2014 John Wiley & Sons, Ltd. [ABSTRACT FROM AUTHOR]

The aim of this paper is to apply recently developed panel cointegration techniques proposed by Pedroni ( Oxford Bulletin of Economics and Statistics 61 (1999): Supplement, 653–670; Econometric Theory 20 (2004): 597–625) and generalized by Banerjee and Carrion-i-Silvestre (Working Paper 591, European Central Bank, February 2006) to examine the robustness of the PPP concept for a sample of 80 developed and developing countries. We find that strong PPP is verified for OECD countries and weak PPP for Middle East and North African countries. However, in African, Asian, Latin American and Central and Eastern European countries, PPP does not seem relevant to characterize the long-run behavior of the real exchange rate. Further investigations indicate that the nature of the exchange rate regime does not condition the validity of PPP, which is more easily accepted in countries with high rather than low inflation. [ABSTRACT FROM AUTHOR]

In this paper, we examine the two‐way relationship between economic growth and human development in Zambia over the period 1970 to 2015. By applying the cointegration and vector error correction model techniques, our estimates demonstrate, in the first instance, that economic growth and human development are cointegrated. Second, there is no evidence of two‐way causal effect observable between economic growth and human development in the short run. In marked contrast, we find that economic growth has long‐run effect on human development, with no evidence of reverse causality. This shows that the endless fixation on economic growth has manifestly and consistently proven that GDP growth has had sluggish multiplier effect on inclusive development in Zambia. Finally, we draw country‐specific policy recommendations from our empirical findings. [ABSTRACT FROM AUTHOR]

The purpose of this paper is to analyse the causality between exports and GDP of Namibia and to evaluate the relationship of these variables for the period 1970 to 2005. Time-series econometric techniques (Granger causality and cointegration) are applied to test the hypothesis of a growth strategy led by exports. It tests whether export Granger causes GDP, or whether the causality runs from GDP to exports, or if there is bi-directional causality between exports and GDP. The results revealed that exports Granger cause GDP and GDP per capita. This suggests that the export-led growth strategy through various incentives has a positive influence on growth. [ABSTRACT FROM AUTHOR]

The paper considers the application of recent results on estimation and inference in panel cointegration to the study of empirical economic growth. The emergence of endogenous growth theory in the 1980s has led to a resurgence of interest in the sources of economic growth. The paper re-examined economists D. Coe and E. Helpman's international research and development (R&D) spillover regressions by applying different estimation methods of cointegrating regressions in panel data proposed by economists C. Kao and M.-H. Chiang. The empirical results indicate that the estimated coefficients in Coe and Helpman's regressions are subject to estimation bias. However, in all cases the estimates are correctly signed. All estimations confirm the existence of the linkage between TFP and domestic capital stock. In addition, there exists strong evidence supporting Coe and Helpman's argument that the impact of domestic R&D capital stocks on TFP differs between the G7 countries and the other small countries.

This paper revisits the relationship between financial development and economic growth in Bangladesh by incorporating trade openness in production function using quarter frequency data over the period of 1976-2012. We applied combined Bayer-Hanck cointegration approach to examine cointegration among the series. Our empirical evidence suggests that development of financial sector facilitates economic growth but capitalization impedes it. In addition, trade openness stimulates economic growth. Labour is also positively linked to economic growth. The vector error correction model Granger causality results divulge that financial development causes real per capita gross domestic product ( GDP) growth, and resultantly, real per capita GDP growth causes financial development in a Granger sense. The results also show that trade and labour Granger cause economic growth. The findings of the paper provide insights for policymakers to use financial development and trade openness as a tool for sustained economic growth in the long run. The paper also suggests policymakers to utilise capitalization in a way that is beneficial for economic growth of Bangladesh. [ABSTRACT FROM AUTHOR]

ABSTRACT In this paper, we construct a single composite financial stress indicator (FSI), which aims to predict developments in the real economy in the euro area. Our FSI was shown to perform better than the Euro STOXX 50 volatility index for the recent banking crisis and the euro-area sovereign debt crisis and to be able to serve as an early warning indicator for negative impacts of financial stress on the real economy. Copyright © 2013 John Wiley & Sons, Ltd. [ABSTRACT FROM AUTHOR]

ABSTRACT There is a rising awareness and interest of corporations about corporate sustainable behaviour. Sustainability issues are increasingly integrated into corporate strategies, actions, and behavior. Different approaches, systems, and instruments have been developed to support corporate sustainability management. An important aspect of any sustainability-related corporate initiative is to train employees and to develop sustainability-related competencies. To enable education and training in this area, an interdisciplinary team of researchers, consultants and practitioners developed a management game called 'sustainability manager' (). This paper presents the key features of this business simulation and reflects the experiences of the application of this management game in training. This management game is based on a business simulation, i.e. a company is modelled using web technology and soft computing approaches. The sustainability manager can be used as a web-based training instrument for sustainability management and can be adapted to specific training situations. Copyright © 2013 John Wiley & Sons, Ltd and ERP Environment. [ABSTRACT FROM AUTHOR]

This paper examines the causal relationship between financial development and economic growth using data for 17 countries in Sub-Saharan Africa. The analysis is conducted using panel cointegration and causality tests which take account of heterogeneity between countries which arises as a result of different country intercepts and varying regression coefficients slopes across countries. The results show that there is homogenous bi-directional causality between financial development and economic growth. This result is robust to alternative measures of financial development and implies that for these Sub-Saharan African countries, both the real and financial sectors are complementary to each other and their simultaneous development should be encouraged. Copyright © 2010 John Wiley & Sons, Ltd. [ABSTRACT FROM AUTHOR]

The present paper attempts to combine cointegration theory and the material flow analysis approach to examine the causal relationship between resource use and real GDP in Jiangsu Province in East China. The study considers the period from 1990 to 2007. We use direct material input as the proxy variable for resource use. Our estimation indicates that real GDP and resource use are cointegrated and there is only unidirectional long-run Granger causality running from resource use to real GDP, but not vice versa. The estimation results mean that resources are a limiting factor in terms of economic growth, and, therefore, strategies should be adopted for more vigorous economic development and consistent resource use in East China. Furthermore, the novel idea and methodology involved in the present study can be readily extended to cover other regions for the analysis of the relationship between resource use and economic growth. [ABSTRACT FROM AUTHOR]

Abstract: This paper examines whether recent financial changes in three emerging market economies in the Gulf region (Bahrain, the UAE, and Qatar) have distorted the character and the stability of their underlying long-run money demand relations. Money demand instability prompts concerns about the appropriateness of targeting monetary aggregates and could weaken the presumed link between monetary policy and its ultimate objectives. Our results suggest that the quick pace of financial changes in the three emerging market economies did not cause undue shifts in their equilibrium money demand relations. Further evidence from direct tests of cointegration stability indicates the superiority of targeting M1 in the UAE and M2 for Qatar. In Bahrain, both M1 and M2 prove equally appropriate to guide monetary policy. Thus, despite the wave of financial developments that have recently swept the three Gulf economies, the evidence suggests that monetary authorities in these countries should maintain a close watch on monetary growth as a principal policy guide. [Copyright &y& Elsevier]

A main focus of this paper is our analysis of the vote function using the vote share of government parties as the proxy variable for government popularity. Utilising Pedroni's (1999 ) panel cointegrated test and the fully modified OLS (FMOLS) technique, we empirically examine the long-run co-movement relationship in a bivariate model between government popularity and macroeconomic outcomes as well as a lag term in accordance with updated data for 11 countries of the Economic Community of West African States (ECOWAS) during the 1975-2005 period. The results indicate the existence of panel cointegration relationships in our empirical model. The panel FMOLS shows that several macroeconomic shocks are responsible for positive contributions to government popularity, especially in regard to economic growth and government expenditures. By contrast, currency depreciation, higher interest payments, and a greater taxation burden on households all contribute to lower government support in our sample countries. Based on such evidence, important policy implications emerge for ECOWAS. [ABSTRACT FROM AUTHOR]

This paper considers how monopoly power affects the relationship between economic integration and economic growth that is not biased by a scale effect. In a two-country model of trade, productivity growth is generated by firm-level investment in process innovation, and the location of economic activity is determined by relative market size, trade costs and imperfect knowledge diffusion. Equilibrium features the partial concentration of manufacturing and the full concentration of innovation in the larger country. Increased economic integration raises the concentration of manufacturing in the larger country, and when monopoly power is strong, leads to decreased product variety, accelerated productivity growth and greater national welfare. With weak monopoly power, however, it raises product variety and dampens productivity growth, but may benefit or hurt welfare. [ABSTRACT FROM AUTHOR]

The Korean economy has entered a period of relatively sluggish growth after experiencing very dynamic and high economic growth since the 1970s. The recent growth rate has been around 3 percent, which is similar to that in many advanced countries. According to growth accounting, economic growth is possible because of input increases and productivity increases. Productivity growth is much more important than input increases for long‐term economic growth. We investigated whether there was a structural break in the Korean manufacturing industry and whether the main factor contributing to economic growth shifted from input to productivity. Using various econometric methods, we tested this question and found some interesting results. First, there was an important change in the 1990s, and the productivity trend seemed to show a big structural break at that time. Second, an input increase was the main factor contributing to economic growth before the break and productivity became more important after the break. Third, there was also a major change in the relationship between international trade and productivity. [ABSTRACT FROM AUTHOR]

In this paper, the relationship between electricity consumption ( LEC) and economic growth ( LGDP) using Autoregressive Distributed Lag ( ARDL) model and Granger causality within error correction framework in India over the period 1970-1971 to 2009-2010 are analysed. The results of these tests exhibit the existence of long-run equilibrium relationship and bilateral causality in case of India. Then, Hodrick- Prescott filter is used to decompose the data into trend and cyclical (fluctuation) components of electricity consumption and economic growth. The results of decomposed series revealed that both series are cointegrated with the strong evidence of bidirectional causality, implying that trend and cyclical components are strongly correlated with business cycles in India. From these findings, we conclude that the feedback hypothesis is applicable in case of India. Therefore, government should undertake necessary policy measures to augment the investment in power sector from existing level and more importantly the emphasis should also be given on the efficient use of electricity. [ABSTRACT FROM AUTHOR]

This paper presents a New Economic Geography model of structural change, agglomeration and growth. Assuming a non-homothetic preference structure, our results show that a progressive reduction of trade costs allows the economy to pass from a pre-industrialized to an industrialized stage and then, within the latter, from a dispersed to an urbanized regime. However, the introduction of capital accumulation and the dynamic setting of our model opens the door to a richer set of implications. First, an additional stage is introduced as, for some intermediate values of trade costs, a multiple equilibria regime emerges with simultaneously stable symmetric and core-periphery equilibria. Second, the introduction of non-homotheticity introduces a new channel through which growth is affected by trade costs and agglomeration. In particular, integration is always growth-enhancing while agglomeration is growth-detrimental. [ABSTRACT FROM AUTHOR]

Two main contributions to literature on foreign direct investment (FDI) and economic growth are made in this paper. First, the paper examines the effect of FDI on economic growth for 44 developing countries using heterogeneous panel cointegration techniques that are robust to omitted variables and endogenous regressors. The main result is that FDI has, on average, a negative effect on growth in developing countries, but there are large differences in the effect across countries. Second, a general-to-specific model-selection approach is used to systematically search for country-specific factors explaining the cross-country differences in the growth effects of FDI. The results suggest that the cross-country heterogeneity in the growth effect of FDI can be explained mainly by cross-country differences in freedom from government intervention, business freedom, FDI volatility, and primary export dependence. [ABSTRACT FROM AUTHOR]

The objective of this paper is to analyse the role of tourism in the Tunisian economic growth. We used a trivariate model of real gross domestic product (GDP), real international tourism receipts and real effective exchange rate to discuss the relationship between tourism and economic growth. By using annual data for Tunisia for the period of 1970–2007, our results reveal that there is a cointegrating relationship between tourism and economic growth. In addition, our results for the Granger causality test indicate that tourism has a positive impact on GDP growth unidirectionally. Copyright © 2010 John Wiley & Sons, Ltd. [ABSTRACT FROM AUTHOR]

In this paper, we introduce threshold-type nonlinearities within a single-equation cointegrating regression model and propose a testing procedure for testing the null hypothesis of linear cointegration vs. cointegration with threshold effects. Our framework allows the modelling of long-run equilibrium relationships that may change according to the magnitude of a threshold variable assumed to be stationary and ergodic, and thus constitutes an attempt to deal econometrically with the potential presence of multiple equilibria. The framework is flexible enough to accommodate regressor endogeneity and serial correlation. [ABSTRACT FROM AUTHOR]

The study seeks to find out whether financial structure matters in economic development. Using quarterly data from 1998 to 2018 from Ghana and with auto regressive distributed lag (ARDL)‐bound testing technique in the study found that financial structure is irrelevant for long‐term economic growth in Ghana. The finding of concurs with the complementarity view between the banks and the exchange and rejects that both subsectors are substitutes since financial services indicators were significance in influencing economic growth. In this vein the study concludes on the importance of financial services rather than structure. Based on these observations, the study recommends that policymakers should grow the synergy between the banks and the markets. [ABSTRACT FROM AUTHOR]

South Africa, like most developing nations, is confronted with choosing between the need to advance their economy and the need to protect the environment. The United Nations Sustainable Development Goals (UN‐SDGs‐7, 11, 12 & 13) provide a strong foundation for this investigation. To this end, the current research investigates the combined impacts of economic policy uncertainty, fiscal decentralization, and green innovation on environmental sustainability for the instance of South Africa with yearly frequency data from 1960 to 2020. The current research leverages on dynamic ordinary least squares, fully modified ordinary least squares, and canonical cointegration regression. The Maki cointegration test shows how the variables being evaluated have an equilibrium connection across the time period under review. Empirical findings support the environmental Kuznets curve (EKC) framework. These findings imply that, in the first stages of economic expansion, ecological environment is being sacrificed for economic progress (scale stage). Based on the EKC hypothesis, long‐term quadratic economic growth reduces emissions by 0.162% whereas a 1% rise in economic growth increases emissions by 0.791%. Similar to this, long‐term economic globalization and economic policy uncertainty impair ecological sustainability, whereas long‐term fiscal decentralization and green innovation raise it in South Africa. These results have broad environmental repercussions. The present investigation supported environmental stick measures and investment in initiatives on a fundamental change from fossil‐fuel energy consumption base to renewables. The final portion highlights further insights. [ABSTRACT FROM AUTHOR]

We analyse the direction of causality between public debt and real economic growth in a sample of 20 OECD countries for a period of 40 years starting in 1970. Given the persistence of real growth rates, we estimate canonical cointegrating regressions to allow for the possibility of stochastic cointegrating vectors. We then make inferences about the direction of causality by means of both Granger tests and VAR-based tests that do not depend on whether the series are integrated or cointegrated. We found that while modern welfare states tend to face low real growth following increases in public debt, more traditional welfare states and those with larger governments typically exhibit either causality from low growth to debt accumulation or bidirectional causality. However, the heterogeneity of the results suggests caution when making general statements about the relationship between these variables. In particular, the causal link is intrinsic to each country and it cannot be inferred that higher debt always leads to lower economic growth. [ABSTRACT FROM AUTHOR]

This study extends the previous empirics and conducts a comprehensive analysis of the effects of terms of trade (TOT) on economic growth in the large and emerging market economy, India, which experienced tremendous transformation from a persistently low‐growth economy in the 1950s–1970s to a moderate‐growth economy in the 1980s and then to a high‐growth economy, following the onset of inclusive economic reforms from the beginning 1990s. The TOT remained unfavourable during the 1950s, witnessed boom during the mid‐1960s to the mid‐1970s, showed sharp downturn during the mid‐1970s to the mid‐1980s, and then displayed deteriorations again from the late 1990s to 2017–2018. The model estimated in one‐regime setting with no structural break and in a sample‐split setting with multiple structural breaks—over both "long" and "short" time periods—supports the presence of cointegration among variables and suggests the positive and significant long‐run effects of TOT on economic growth. The diversification of trade, the continual improvements in the quality of export products, and the development of high value‐added industries are essentially crucial to induce long‐term improvements in TOT. The improvements in TOT need to be accompanied by the development of financial sector, expansion of external trade, and acceleration of domestic investment. [ABSTRACT FROM AUTHOR]

This study examines the interrelation of ICT diffusion and financial development with economic growth in SAARC economies, by employing data for the time period 2000–2017. The empirical analysis is carried out using granger causality and cointegration techniques. First generation panel unit root tests namely LLC, IPS, ADF, and PP test were employed for this purpose. All the variables were found to be integrated of order one at first difference. Pedroni's cointegration test along with Kao's residual‐based cointegration test was used which reveals the presence of long‐run relationship among the variables. Further, cointegration coefficients are computed with the help of fully modified ordinary least squares and dynamic ordinary least squares method. While financial development, ICT diffusion, and trade openness were found to increase the growth rate, inflation exhibited negative impact on growth. Both short‐run and long‐run causality were examined using panel granger causality test which revealed unidirectional causality running from ICT diffusion and financial sector development to economic growth. However, the result of causation between financial sector development and the ICT diffusion was statistically insignificant. [ABSTRACT FROM AUTHOR]

This study examines the effect of education export on economic growth and development, using Australia as a case study since it is one of the top destinations for international students. International education has played a vital role in Australia's economy over the last three decades, becoming the third‐largest export of Australia after iron ore and coal and earning AU$40.3 billion in 2019. The sector supports about 250,000 jobs and provides an important source of skilled migrants for Australia. This study employs the cointegration and error correction model and quarterly data from 1974 to 2019 to analyse the effect of internationalisation of education on the Australian economy. The results suggest a long‐run positive relationship and a short‐run dynamic effect of international education on the economic growth and employment of Australia. The findings of this study have far‐reaching implications for other education‐exporting countries. Policy recommendations suggest taking proactive, flexible and innovative approaches to attract international students, and diversifying the market can support growth of the sector and enhance the economy‐wide spillover effects. The study further proposes sound and timely policies to promote the internationalisation of education to augment not only economic growth but also long‐run development for both education‐exporting and education‐receiving countries. [ABSTRACT FROM AUTHOR]

The study investigates the impact of insurance activities on economic growth in Malaysia over the period 1990–2015. Combined cointegration in the presence of identified structural breaks was used to confirm the existence of long‐run relationships among economic growth, insurance activities, human capital, physical capital, and industrial production. The findings indicate feedback effects between insurance activities and economic growth in the long run. The study provides new insights for policymaking to enhance economic growth via insurance activities. [ABSTRACT FROM AUTHOR]

This study empirically examines the cointegrating relationship among variables, viz. carbon emission, economic growth, square of economic growth, primary energy supply, financial development and trade openness in India, with a view to validate the Environmental Kuznets Curve (EKC) hypothesis. The results based on ARDL bounds testing approach to cointegration find no credence to EKC hypothesis, for the period 1971–2016. This indicates that the relationships between carbon emission and economic growth are not significant, and therefore, the EKC hypothesis does not hold in the case of India. Furthermore, the study establishes a significant positive relationship between energy supply and carbon emission. A proportionate increase in energy supply causes more than proportionate increase in carbon emission. In order to cope up with the positive impact of energy on carbon emission, the study suggests that the country needs to expedite the process of enhancing the capacity of renewable and clean energy generation. [ABSTRACT FROM AUTHOR]

With the importance of sustainable development widely accepted, the relationship between natural capital utilization and economic development has become a global focus. This study analyzes the relationship between the utilization of natural capital and economic development in the countries along China's "Belt and Road" initiative using a panel regression model. The results show that the labor force, rural and urban populations, and exports and imports have a significant impact on both natural capital consumption and economic development. However, the impact of exports and imports on economic development here is contrary to economic theory and experience. We also find that there is still resource dependence in economic development and that natural capital consumption has a long‐run impact on it. To address this, the "Belt and Road" countries should adopt comprehensive national and regional measures to build a mutually beneficial cooperative mechanism and trade environment. [ABSTRACT FROM AUTHOR]

A consensus among academics and policymakers holds that investing in human development not only improves lives, but also by itself promotes stellar economic growth. We investigate these claims by estimating the two‐way causality between economic growth and human development in Nigeria over the period from 1961 to 2015. By employing three statistical frameworks (Gregory–Hansen Cointegration, Stock–Watson Dynamic Ordinary Least Square and Vector Error Correction Model), our estimates suggest the following. First, economic growth and human development share a long run relationship, that is, they are cointegrated. Second, despite the two variables sharing a long run relationship, only economic growth can exercise a positive effect on human development, and no evidence of reverse causality was observable. Far importantly, we prescribe a policy recommendations from these findings. © 2018 John Wiley & Sons, Ltd. [ABSTRACT FROM AUTHOR]

This study employs panel data from 138 countries (with unbalanced time frameworks) to investigate the relationship between economic freedom and income inequality. Both linear and non-linear cointegration methodologies are used to identify a long-run equilibrium relationship between: (i) the overall Economic Freedom of the World index and income inequality, and (ii) the major areas of the index and income inequality. The linear long-run parameter estimates document that the association turns out to be negative, while the non-linear long-run parameter estimates illustrate that above a threshold point the association between economic freedom and income inequality is negative, while below this threshold point, the association turns out to be positive. The empirical findings survive a number of robustness tests, such as alternative measures of income inequality. [ABSTRACT FROM AUTHOR]

We look at two emerging economies, Brazil and China, and propose an evaluation of their recent development in terms of growth performance and the evolution of income inequality. Our analysis, therefore, is related to the literature on their recent vast growth and also to the much debated Kuznets curve and theory. However, we claim that neither the growth nor the Kuznets approach capture recent relevant phenomena characterizing such countries' dynamics: namely, the presence of at least two distinct growth models. Cointegration analysis and empirical evidence seem to corroborate our interpretation. They also offer some further insights. We surmise that while contributing to press for a further re-examination of convergence in the light of the issue of income distribution, such findings have interpretative relevance and policy implications for other less developed countries. [ABSTRACT FROM AUTHOR]

This study examines the effects of international trade and investment on output and tests the Granger-causal nexus among trade, investment and economic growth in New Zealand for the period 1954-2007. The results provide consistent support for the long-run effects of trade and investment on output. The optimal single-equation and the vector autoregression-based system estimates of the model consistently suggest positive and significant long-run effects of exports and investment on output. The effects of imports on output are positive across all and statistically significant across most estimators. The Johansen test for cointegration suggests the presence of one equilibrium relationship among the model variables. The JMN test for cointegration with structural breaks provides mixed support, while the end-of-sample cointegration breakdown tests lend dominant support for cointegration among the model variables. The positive and significant long-run effects of exports and investment on output underline the need for the promotion of exports and increase in investment to foster higher levels of output and economic growth. [ABSTRACT FROM AUTHOR]

The study explores Africa's regional integration models with a view to determining their suitability or otherwise for rapid economic growth. Using annual data spanning 1980-2012, the study employs the Johansen () and the Johansen and Juselius () method of cointegration and Vector Error Correction Mechanism (VECM) to test for the presence of long-run equilibrium relationships among the variables and estimate their static and dynamic coefficients. The study found a significant positive role for infrastructure financing, and human and physical capital accumulation both of which significantly influenced Africa's economic growth. Intra-African trade, though positive and significant, was found to be less effective in inspiring growth compared to the above growth fundamentals. Trade openness and government spending were the only variables discovered to significantly influence Africa's economic growth in both the short and long run. The study concludes that the traditional approach to regional integration may not provide the best alternative for Africa's economic growth. It, thus, recommends the adoption of a mixed policy approach to regional economic integration to foster Africa's economic growth in the 21st century. The contribution of the study lies in its ability to subject Africa's models of regional integration to practical examination using modern approaches. [ABSTRACT FROM AUTHOR]

Abstract: Recent operations management and innovation management research emphasizes the importance of supplier integration. However, the empirical results as to the relationship between supplier integration and time-to-market are ambivalent. To understand this important relationship, we incorporate two major recent developments. First, the literature has started to redefine supplier integration into two dimensions, supplier product integration and supplier process integration. Second, recent research has begun to examine spillover effects that extend beyond the direct costs and benefits of the supplier contract. Using survey data of 116 firms in the industrials, health care, and information technology industries, the results confirm our hypotheses and show that supplier product integration decelerates time-to-market while supplier process integration accelerates time-to-market. The results also show a positive relationship between supplier integration and the adoption of external technologies, which either decelerates or accelerates time-to-market depending on the level of internal exploration activities. Our research, thus, helps to open the ‘black-box’ of the relationship between supplier integration and time-to-market, and provides a theoretically grounded explanation to the apparent contradictory results in prior research about the influence of supplier integration on time-to-market. In addition, we contribute to research on spillover effects by emphasizing that information technology adoption and assimilation is an important spillover effect of supplier integration. [Copyright &y& Elsevier]

The European sovereign debt crisis revived the discussion concerning pros and cons of exchange rate adjustment in the face of asymmetric shocks. In the spirit of Keynes, exit from the euro area is to regain rapidly international competitiveness. In the spirit of Schumpeter, exchange rate stability with structural reforms would be beneficial towards the long-run growth performance. Previous literature has estimated the average growth of countries with different degrees of exchange rate flexibility. This literature is augmented by analyzing short- and long-term growth effects of exchange rate flexibility in a panel-cointegration framework for a sample of 60 countries clustered in five country groups. The estimations show that countries with a high degree of exchange rate stability exhibit a higher long-term growth performance. It is shown that the degree of business cycle synchronization with the anchor country matters for the impact of exchange rate flexibility on growth. [ABSTRACT FROM AUTHOR]

This article suggests an alternative formulation of the cointegrated vector autoregressive (VAR) model such that the coefficients for the deterministic terms have straightforward interpretations. These coefficients can be interpreted as growth rates and cointegration mean level coefficients and express long-run properties of the model. For example, the growth rate coefficients tell us how much to expect (unconditionally) the variables in the system to grow from one period to the next, representing the underlying (steady state) growth in the variables. The estimation of the proposed formulation is made operationally in GRaM, which is a program for Ox Professional. GRaM can be used for analysing structural breaks when the deterministic terms include shift dummies and broken trends. By applying a formulation with interpretable deterministic components, different types of structural breaks can be identified. Shifts in both intercepts and growth rates, or combinations of these, can be tested for. The ability to distinguish between different types of structural breaks makes the procedure superior compared with alternative procedures. Furthermore, the procedure utilizes the information more efficiently than alternative procedures. Finally, interpretable coefficients of different types of structural breaks can be identified. [ABSTRACT FROM AUTHOR]

There is a general consensus that human capital is a major factor behind long-run economic growth. Yet, on a macro level, the empirical results do not always seem to concur with this view. To explain this gap between theory and empirics, more focus has been laid on measurement error and data quality. Using an alternative estimate of the stock of human capital, based on Judson (2002), we find evidence that the two major views on the role of human capital in economic development by Lucas (1988) and Romer (1990) coexist and are by no means mutually exclusive. Using a Johansen cointegration test, we find that in India and Indonesia the level of human capital is cointegrated with the level of aggregate income during the whole 20th century, which confirms the theory of Lucas (1988). In Japan, however, the Lucasian approach can be verified only for the first half of the century, while after 1950 there is cointegration between the growth rate of aggregate income and the level of human capital, which is in line with Romer's view. [ABSTRACT FROM AUTHOR]

This study examines the export-led growth hypothesis using annual time-series data from Chile in a production function framework. It addresses the limitations of the existing literature and focuses on the impact of manufactured and primary exports on productivity growth. In order to investigate if and how manufactured and primary exports affect economic growth via increases in productivity, several single-equation and system cointegration techniques are applied. The estimation results can be interpreted as evidence of productivity-enhancing effects of manufactured exports and of productivity-limiting effects of primary exports. [ABSTRACT FROM AUTHOR]