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The resource curse theory has become a paradox that has been discussed for many years in the literature. Because most studies have revealed empirical evidence that resource rents negatively affect financial development although resource wealth provides many advantages. Therefore, studies on whether studies conducted with different methods in different periods can produce results contrary to this theory are continuing. This study aims to test the asymmetric effect of natural resource rents on financial development among resource‐rich countries. The study investigated the data of 10 countries those have the highest natural resource rents in the World that selected from World Atlas (2018) for the period 1993–2017. As a result of empirical analysis, this study proved that there was a financial resource curse hypothesis among resource‐rich countries. While positive shocks are effecting financial development negatively, negative shocks are found as effecting financial development positively. This study also showed that resource‐rich countries are lucky but not a winner in the context of financial development and sustainable development. [ABSTRACT FROM AUTHOR]

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. [ABSTRACT FROM AUTHOR]

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The aim of this study is to test the validity of the purchasing power parity hypothesis with the help of panel unit root tests taking into account the cross-sectional dependence as well as structural breaks for ASEAN (Indonesia, Malaysia, Thailand, Philippines, Singapore, Brunei, Vietnam, Laos, Cambodia). For this purpose, monthly data for the period 1995: 01-2017: 05 was used. According to the results of the Panel LM test which takes into account the structural breaks, it was found that the hypothesis of purchasing power parity is valid for ASEAN countries. [ABSTRACT FROM AUTHOR]

This study investigates the impact of five economic indicators -clusters, FDI, R&D, and GDP per capitaon innovation. Using a unique panel dataset obtained from eight upper/middle-income countries with similar innovation levels that are in and out of economic clusters from 2001-2014. Being in a cluster has static (countable) and dynamic (uncountable) effects. We demonstrated that from the dynamic effect variables GDP per capita, FDI, a dummy variable for being EMU member and R&D expenditure only FDI is significant. On the other hand, export numbers are correlated with innovation negatively by 1.3. The empirical support shows that the dynamic effects of clusters are not statistically significant on innovation, but static effects are. Therefore, clusters are useful for countries on trade but not innovation directly. In a nutshell, an upper middle-income country should increase trade for innovation spillover by moderation effect of being in economic unions. [ABSTRACT FROM AUTHOR]

In this study, the dynamic relation between global crude oil prices and stock prices is investigated in terms of crude oil-exporting and -importing countries. The relationship between crude oil prices and stock prices is examined for BRICS countries (Brazil, Russia, India, China, and South Africa) for the periods of January 1995 to December 2016 by means of the Markov Switching Vector Autoregression (MS-VAR) model. The impulse-response analysis results suggest that the responses of the stock market to an oil price shock vary over the regimes for all countries. Specifically, we find that the responses of the stock market to an unexpected oil price shock are positive and statistically significant in the high-volatility regime in all countries except for China, and these results suggest that the increase in oil prices may be evaluated by demand-side shock in these countries. [ABSTRACT FROM AUTHOR]

As innovative firms have considerable competitive advantage, more foreign direct investment (FDI) research has been related to innovation. The primary aim of this study is to explore how intra-regional economies interact with host countries' innovative performance, and how they are affected by FDI. Azerbaijan, Georgia and Turkey, located in the South Caucasus region, are selected as examples. Numbers of patent applications, R&D expenditure (% of GDP), and intellectual property payments are chosen as factors indicative of innovation. While this research tries to explore whether these three countries, connected by large trades, can act as a clustered group, panel cointegration and panel OLS models are used for analysis. The results show that FDI is an important variable affecting the level of innovation in the panel analysis. Nevertheless, individual relationships with FDI vary, and cointegration analysis shows heterogeneity. That is, foreign direct investment could play a central role in increasing the level of innovation for Azerbaijan and Georgia, but it is not an important determinant of Turkey's economic innovation level. Countries should realize that when their economies are becoming stronger FDI is not a useful tool for escalating innovation, rather they should cluster together in order to leverage innovation. [ABSTRACT FROM AUTHOR]

European crisis affected financial sustainability of Monetary Union countries negatively. Union countries are trying to alleviate the short term effects of the crisis on policy implementation. Whether union countries will ride out the crisis with short term policies can be examined by investigating their financial sustainability. The aim of this study was to examine the European Monetary Union member countries' financial viability. For this aim we use a balanced panel covering EMU 12 countries (Austria, Belgium, Finland, France, Germany, Luxemburg, Ireland, Portugal, Netherland, Italy, Greece, Spain) over the period 1995-2011. We analyzed the relationship between debt/GDP and primary surplus for panel causality covering EMU 12 countries. The results of the panel co-integration tests revealed that the variables are co-integrated. In other words there is statistically significant long-run relationship among the variables. [ABSTRACT FROM AUTHOR]

The purpose of this study is to show the effect of monetary union on macroeconomic performance for 24 OECD countries during the period 1988-2009. According to the findings, the European Monetary Union has a positive effect on foreign trade. On the other hand, it has a negative effect. The monetary union set up without a financial union has a negative effect on macroeconomic performance by limiting the implementations of policy makers even if it has a positive contribution on trade. Thus, monetary policy implementations not supported with financial policy have a negative effect on macroeconomic performance. [ABSTRACT FROM AUTHOR]

This study proposes the time-varying nonlinear panel unit root test to investigate the convergence of ecological foot prints between the EU and candidate countries. Sixteen European countries (such as Albania, Austria, Belgium, Denmark, France, Germany, Greece, Italy, Luxembourg, Netherlands, Poland, Portugal, Romania, Spain, Sweden and Turkey) and analysis periods are selected according to data availability. This study proposes a cross-sectional Panel KSS with Fourier to test the convergence of the ecological footprints. Then, we combine this methodology with the rolling window method to take into account the time-varying stationarity of series. This study evaluated sub-components of ecological footprints separately and provided more comprehensive findings for the ecological footprint. According to empirical findings, this study proves that convergence or divergence does not show continuity over time. On the other side, this study points out the presence of divergence draws attention when considering the properties of the sub-components in general. As a result, this study shows that international policies by EU countries are generally accepted as successful to reduce ecological footprint, but these are not sufficient as expected. In this point, it is suggested to keep national policies to support international policies in the long term. [ABSTRACT FROM AUTHOR]