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In this article, we apply dynamic panel techniques-specifically, Panel FMOLS, DOLS, and Panel ARDL-to analyze the effects of energy consumption, foreign direct investment, openness to trade, and consumption of renewable energy on economic development in the Commonwealth Independent States from 1992 to 2022. Results from using panel FMOLS, DOLS, and CCR models show that FDI, energy consumption, and renewable energy consumption all contribute favorably to economic development over the long term. However, there is a detrimental connection between the extent of trade openness and economic growth. Outcomes obtained by applying dynamic panel estimating approaches have also been validated by results from Quantile regression using the Method of Moments. In order to stimulate economic development, the empirical evidence suggests that the government should promote and support alternative sources of energy. Further policy consequences are investigated more thoroughly in the paper. [ABSTRACT FROM AUTHOR]

This research examines the long-term causation between financial deepening and economic growth in African-emerging economies. The fully modified and dynamic ordinary least square methods are used. Bidirectional causality exists between domestic credit to the private sector, money supply ratio, trade openness and gross domestic product per capita. Unidirectional causality flows from capital formation to gross domestic product per capita. The central banks should apply policies which encourage credit flow to private enterprises via banks' intermediation and eliminate the bottlenecks undermining credit flow. The governments should establish an investment friendly environment in all sectors and upgrade the productive capacity. Studies have been conducted on the nexus of financial deepening and economic growth with debatable outcomes. Some studies illustrate a positive alliance between financial deepening and economic growth, supporting the supply-leading model. Other findings support the demand-following theory, while some demonstrate mutuality in the nexus between financial deepening and economic growth. Nevertheless, limited studies have been conducted on the nexus between financial deepening and economic growth to ascertain if the supply-leading or demand-following hypotheses hold. [ABSTRACT FROM AUTHOR]

In the face of rapid demographic transitions, Sub-Saharan African countries stand at a critical juncture where the potential for harnessing a demographic dividend to fuel economic growth is immense. This demographic shift presents both challenges and opportunities, with the right investments in health, education, and employment, countries can turn the growing youth population into a powerful engine for development, driving substantial and sustainable economic progress across the region. This study examines the demographic structure effect on economic growth in the context of structural changes in 26 sub-Saharan African countries. Using data from 1992 to 2019 in the PMG-ARDL, FMOLS, and DOLS estimates, we find that demographic structure has a positive influence on economic growth in the long run, which occurs through effective structural change, that is, structural changes that occur with an increase in labor productivity growth. Indeed, our results show that structural changes are relevant in transforming African youth debt into demographic dividends.

This study explores the growth effect of public debt on the growth of agricultural and nonagricultural sectors as well as the aggregate economy. This investigation is imperative because the rising public debt in Nigeria may not have uniform implication on growth across sectors and the economy at large. The data for the analysis was sourced from the World Bank (WB), World Development indicators (WDI) covering the period of 1980 to 2021. The results using the Fully Modified Ordinary Least Squares (FMOLS) show that public debt, exports, and inflation have a statistically significant negative effect on growth in Nigeria while population growth has a significant positive effect on growth in Nigeria. However, the relationship between imports and GDP in Nigeria is not statistically significant. The result also shows that public debt exerts a significant negative effect on agricultural and industrial growth, while its effect on services growth is not significant. The study submitted that public debt exerts a significant adverse effect on growth in Nigeria. However, when looking at the sector-specific effect, the effect of public debt remains significant and negative for both agricultural and industrial sectors implying that higher levels of public debt are associated with lower growth in these two sector while in the services sector public debt does not show a significant effect. The study recommended the need to implement strong fiscal discipline and progressive tax system rather than borrowing to reduce public debt significantly and promote sectoral development.

This paper finds a causal relationship between telecommunication infrastructure and economic growth in Organization of Islamic Cooperation (OIC) countries. The analysis considers 56 OIC countries, and data was taken from 2001 to 2019. Telecommunication infrastructure computed from telephone subscribers, mobile cellular subscribers, mobile money accounts, and internet access is the main explanatory variable. We utilized panel data analysis. We utilized fully modified ordinary least squares and dynamic ordinary least squares estimation techniques for long-run estimation. To check the causality between the variables, we use the Granger causality test. The empirical findings elaborate that there is a unidirectional relationship between telephone subscribers, mobile cellular subscribers, mobile money accounts, and economic growth. Similarly, internet users and economic growth have a bidirectional relationship. Our findings indicate that there is a need to constitute integrative policies to improve technology inflow for the growth of the economy. An increase in the telecommunication infrastructure will encourage economic growth and improve the living standards of the masses in OIC countries. [ABSTRACT FROM AUTHOR]

This study explores the growth effect of public debt on the growth of agricultural and nonagricultural sectors as well as the aggregate economy. This investigation is imperative because the rising public debt in Nigeria may not have uniform implication on growth across sectors and the economy at large. The data for the analysis was sourced from the World Bank (WB), World Development indicators (WDI) covering the period of 1980 to 2021. The results using the Fully Modified Ordinary Least Squares (FMOLS) show that public debt, exports, and inflation have a statistically significant negative effect on growth in Nigeria while population growth has a significant positive effect on growth in Nigeria. However, the relationship between imports and GDP in Nigeria is not statistically significant. The result also shows that public debt exerts a significant negative effect on agricultural and industrial growth, while its effect on services growth is not significant. The study submitted that public debt exerts a significant adverse effect on growth in Nigeria. However, when looking at the sector-specific effect, the effect of public debt remains significant and negative for both agricultural and industrial sectors implying that higher levels of public debt are associated with lower growth in these two sector while in the services sector public debt does not show a significant effect. The study recommended the need to implement strong fiscal discipline and progressive tax system rather than borrowing to reduce public debt significantly and promote sectoral development. [ABSTRACT FROM AUTHOR]

This study presents empirical results regarding the relationships between renewable and non-renewable energy consumption, CO2 emissions, and the GDP within the Visegrád Group (V4) countries. Using FMOLS/DOLS and ARDL approaches, along with causality tests based on the Toda–Yamamoto method, this study explores these relationships at a regional level. The study fills the research gaps for a comprehensive analysis of the indicated relationships in the V4 countries by using both individual and panel models. The findings indicate that renewable energy has a small positive impact on long-term economic growth, with non-renewable energy having a more significant effect. Moreover, CO2 emissions have a negative impact on economic growth, suggesting an ongoing reliance on non-renewable energy sources and a burden on economic expansion. At an individual country level, the effects vary. Poland, Slovakia, and Hungary exhibit a negative relationship between CO2 emissions and economic growth. Energy sources also differ in regards to impact: in Poland, the Czech Republic, and Slovakia, non-renewable energy significantly affects economic growth, while in Hungary, renewable energy plays a more substantial role. Causality tests reveal a causal relationship between CO2 emissions and economic growth in the Czech Republic and Poland, suggesting that CO2 emissions significantly influence economic expansion. In terms of energy production, renewable energy is causally related to economic growth in the Czech Republic and Slovakia. All countries demonstrate significant causality between non-renewable energy and economic growth. Additionally, a relationship between renewable energy and CO2 emissions is confirmed in Poland. [ABSTRACT FROM AUTHOR]

The present research examines the correlation between natural resources, institutional quality, and economic growth in five nations in South Asia. To estimate the model, the study utilized the Fully Modified Ordinary Least Squares (FMOLS) estimation technique, analyzing data spanning from 2001 to 2020. The study reveals that natural resources exert a significant negative impact on growth while institutional quality wields a significant positive effect on economic growth. Additionally, labor and capital demonstrated a significant positive influence on economic growth. These outcomes have important implications for policymakers and decisionmakers, urging them to consider the complex interplay of natural resources, institutional quality, labor, and capital in shaping economic growth strategies. [ABSTRACT FROM AUTHOR]

The objective of this study is to assess the effect of trade openness on economic growth in Somalia using time series data spanning 1985-2017. The study employed multivariate cointegration and a fully modified ordinary least square (FMOLS) cointegration method to achieve the objective of the study. The empirical findings of the multivariate cointegration test detected the presence of the long-run connection among the variables in Somalia. Moreover, the findings of the FMOLS method indicated that trade openness has a negative and significant effect on economic growth in the long run in Somalia. Besides, gross capital formation and labor force stimulate economic growth in Somalia in the long run. However, the study recommends the implementation of an effective policy to turn the unfavorable effect of trade openness on economic growth. [ABSTRACT FROM AUTHOR]

Developing countries face the unprecedented environmental protection challenges associated with urban regeneration and economic development. These challenges are particularly evident in managing the vast quantities of construction waste (CW) generated by new building construction and demolition at an urban scale. Capturing the dynamic relationships between CW and urban economic development is a key step in addressing the imbalance between the two and in exploring effective management strategies. This study innovatively uses urban-level data to analyze the non-linear relationship between CW and economic development, while verifying the applicability of the Environmental Kuznets Curve (EKC) hypothesis in the context of CW management. By exploring both short-term and long-term equilibrium effects using data from selected Chinese cities, the study investigates the heterogeneity among four agglomerations through hybrid panel econometric methods. Subsequently, quantitative data analysis is conducted to uncover the socioeconomic drivers of CW generation and to explore their unidirectional causality relationships. This approach not only provides crucial evidence for developing a strategic framework for CW management, but also extends the applicability of the EKC hypothesis to the domain of CW. [ABSTRACT FROM AUTHOR]

This study presents empirical results regarding the relationships between renewable and non-renewable energy consumption, CO2 emissions, and the GDP within the Visegrád Group (V4) countries. Using FMOLS/DOLS and ARDL approaches, along with causality tests based on the Toda–Yamamoto method, this study explores these relationships at a regional level. The study fills the research gaps for a comprehensive analysis of the indicated relationships in the V4 countries by using both individual and panel models. The findings indicate that renewable energy has a small positive impact on long-term economic growth, with non-renewable energy having a more significant effect. Moreover, CO2 emissions have a negative impact on economic growth, suggesting an ongoing reliance on non-renewable energy sources and a burden on economic expansion. At an individual country level, the effects vary. Poland, Slovakia, and Hungary exhibit a negative relationship between CO2 emissions and economic growth. Energy sources also differ in regards to impact: in Poland, the Czech Republic, and Slovakia, non-renewable energy significantly affects economic growth, while in Hungary, renewable energy plays a more substantial role. Causality tests reveal a causal relationship between CO2 emissions and economic growth in the Czech Republic and Poland, suggesting that CO2 emissions significantly influence economic expansion. In terms of energy production, renewable energy is causally related to economic growth in the Czech Republic and Slovakia. All countries demonstrate significant causality between non-renewable energy and economic growth. Additionally, a relationship between renewable energy and CO2 emissions is confirmed in Poland.

Previous studies have investigated the relationship between political instability and economic growth separately from the relationship between military expenditure and economic growth. Besides, they did not cover the period after 2011 (i.e. the Arab Spring and its consequences). Therefore, this paper attempts to empirically analyze the long-run and short-run impacts of both political instability and military expenditure on economic growth in Egypt. We estimate the autoregressive distributed lag (ARDL) approach using data on the Egyptian economy over the period 1982–2018. For the robustness of our results, we use the fully modified ordinary least squares (FMOLS) estimator. Results of the ARDL approach indicate a significant negative relationship between political instability and economic growth in both the long-run and short-run. Contrarily, military expenditure has an insignificant impact on economic growth, especially in the long-run. These results are confirmed by the FMOLS estimator. Moreover, the estimated coefficient on the one-period lagged error correction term (ECTt-1) indicates that deviations from the long-run equilibrium relationship are corrected within a year. [ABSTRACT FROM AUTHOR]

This study examines FDI influence on economic growth in 24 emerging market economies. The generalized Method of Moment (GMM) method is used in this research using panel data to see the effect of FDI on economic growth. This study also uses the Panel Vector Error Correction Model (PVECM) method to see the short-term relationship and Fully Modified Ordinary Least Square (FMOLS) to see the long-term relationship. This study finds strong empirical evidence indicating that the influence of FDI on economic growth is statistically significant in the short and long term. These results vary if we include the level of development reached by countries in emerging market economies. In upper-middle and lower-middle-income countries, FDI positively and greatly influences economic growth. Different results occur in high-income countries, and the results are positive and insignificant. The results show that FDI in high-income countries tends to leave these countries. [ABSTRACT FROM AUTHOR]

This study investigates the relationship between public debt and economic growth in Azerbaijan by applying FMOLS model to data from 1995 to 2020. The findings of the study show that government debt negatively affects economic growth. They also indicate that a 1% growth in export and real exchange rate increases GDP by 0.209% and 0.202%, respectively. The results of this study are useful for policymakers and they advance the economic literature to facilitate further research into developing oil-rich countries. [ABSTRACT FROM AUTHOR]

This study examines the impact of schooling on gross domestic product (GDP) per capita growth of Pakistan and Afghanistan over the period of 2002–2020. Based on the nature of the data, the fully modified ordinary least squares (FMOLS) technique is applied for the estimations. The empirical outcomes of the study revealed that the primary, secondary, tertiary school enrollments have inspiring and remarkable outcome on GDP growth in both Afghanistan and Pakistan. This study concluded that the education is significantly contributed to the GDP growth both in Pakistan and Afghanistan. However, primary, and secondary school enrollment has more effective to influence Pakistan’s GDP growth than Afghanistan in the long term while tertiary school enrollment has more effective to influence GDP growth in Afghanistan than Pakistan. The findings suggests that policy makers of both countries need to devise sound policies, to enhance school enrollment, allocate more budget to education sector, and the ultimate results would be to accelerate growth and improve social welfare. [ABSTRACT FROM AUTHOR]

This study was conducted to investigate the impact of foreign portfolio investment and financial openness on economic growth in low and high income countries. Time series data spanning 1970-2020 was analyzed using the Fully Modified Ordinary Least Square (FMOLS) while other econometric techniques such as the Pooled Mean Group (PMG) and Non-Linear Autoregressive Distributed Lag Model (NARDL) were used to enhance the robustness of study findings. Findings showed that foreign portfolio investment (FPI) had no significant relationship with economic growth in low/middle income countries while a significant positive relationship was found for high income countries. Result findings also found that financial openness (FOP) had no significant impact on the economic growth of any of the income classes. The interaction of FPI and FOP was found to be insignificant for low/middle countries while significant for high income countries. Robustness check revealed the presence of short-run asymmetric effect of FPI on economic growth in low/middle income countries while the same relationship was found between FOP and economic growth for high income countries. The study therefore concluded that foreign portfolio investment and financial openness have no joint or independent impact on economic growth in low income countries and foreign portfolio investment has a significant independent and joint impact on economic growth in high income countries. [ABSTRACT FROM AUTHOR]

Economic vulnerability, is a country's structural feature, making it exposed by out-of-control economic exogenous variables. On the other hand, resilience stems from how macroeconomic policies are adopted. The purpose of this article is to analyze the relationship between sustainable development, vulnerability and resilience in the Iran's economy in the time period of 1391-1398.1 this way, sustainable development consists of 5 Dimensions: Economic, Social, Environmental, Governance, Peripheral and also includes 44 variables as a sub-indicator of each development's dimension. It uses graph theory and Tarjan Algorithm for study the network structure of relationships between variables. The Algorithm identifies34 variables as the fundamental variables affecting economic resilience and vulnerability and introduces economic and governance Dimensions as control (major) Dimensions; Social, Environmental and Peripheral Dimensions as Contingent (minor) Dimensions. The results show that weakness of Iran's economy in this period was due to vulnerability and resilience in governance and economy Dimensions. Among the contingent Dimensions, the Peripheral dimension has the worst situation in terms of vulnerability and resilience. The innovation of this research is in studying the Dimensions of sustainable development and its effect on vulnerability and resilience, moreover graph theory has been used in order to study the influential variables for the first time in Iran. In this algorithm, without limiting the number of input variables, the phenomenon can be analyzed comprehensively. furthermore, a holistic table has been prepared, by focusing on the variables affecting the state of vulnerability and resilience in the theoretical foundations of the subject, that has not been shown in any other studies. [ABSTRACT FROM AUTHOR]

Abstract This study explores the nexus between foreign aid and Chad's economic growth. Empirical evidence is based on annual data from 1982 to 2018. The study used ARDL, FMOLS, and DOLS techniques to establish interconnection among the economic indicators. Subsequently, the study utilized the wavelet coherence technique to capture causality and correlation between economic growth and the independent variables. One of the wavelet approach's uniqueness is that it shows the pattern and behavior of the variables used, including the different time horizons. Thus, we explore the dynamic influence of gross capital formation, foreign aid, import, and export on Chad's economic growth. The result of the ARDL long-run estimates reveals that gross capital formation and foreign aid exert insignificant impact on GDP growth. However, exports and imports exert a positive and significant impact on GDP growth. Furthermore, the global financial crisis has a negative and significant impact on the economy of Chad. The outcomes of the wavelet coherence test provide supportive evidence for the ARDL long-run outcomes. Hence, we suggested that substantial macroeconomic reforms and economic liberalization initiatives will help in the dissemination of information and promote domestic investment and importation of high-tech goods.

Copyright of Quarterly Journal of Economic Growth & Development Research is the property of Payame Noor University and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

The aim of this paper is to analyze and test the effects of capital market development on the per-capita GDP growth in Saudi Arabian economy covering the period of 1985-2018. An ARDL, FMOLS and Johansen tests are implemented. The stock market indicators: share price index, capitalization, liquidity, number of share transactions, and number of shares are employed using a log-linear eclectic model designed to fit the availability of data. Capitalization and liquidity came up with negative signs, contrary to the findings of lots of studies in economic literature. However, the share price index, number of shares traded, and the ratio of number of share transactions had the right signs as expected a priori. The findings raise serious questions about the size of the market, the steps and efforts that have been taken to deepen the capital market and their consequences on the function and potency of capital market in fostering per-capita GDP growth. Applying Granger causality test, share price index, market capitalization and number of shares traded do not granger cause per-capita GDP. They are significant at 5 percent level. Capital market authority (CMA) should draw a road map to accelerate deepening the capital market in order to serve economic growth. First published online 23 December 2020

The environmental variations compel global countries for restructuring economic growth policies to ensure reliable energy usage. Ecological sustainability is a leading concern of the world for adequate and smooth survival of human beings. The inefficiency of technology is a focal hindrance to attaining the sustainable environment goal. This research aims to probe the cointegration and causal relationship among information communication technology, CO2 emission, economic development, trade, and total population for GCC countries, namely, the United Arab Emirates, Saudi Arabia, Qatar, Oman, Kuwait, and Bahrain, from 2000 to 2018. This research approached the unit-root tests, cointegration test, and FMOLS and DOLS test to determine stationarity of data series, cointegration relationship among variables, and the short- and long-run relationship among variables, respectively. The results of the analytical procession by employing FMOLS and DOLS confirmed that CO2 emission, ICT, and ED are positively significant, while POP was negatively substantial at a 1% level. No relation has been observed between trade and CO2 emission. The long-run relationship among variables is confirmed by FMOLS and DOLS analyses. A negative relationship between population growth and CO2 emission is observed. It is ideal for enhancing environmental sustainability by awareness of people’s importance to the environment. The GCC countries should transform or divide their economic growth sectors instead of only the fossil fuel sector. This research also enlightened the way to reduce environmental destruction by the attraction of foreign investments in other sectors compared to entire fossil fuel industries, and the information communication technologies also move toward green technology using environmentally friendly energy resources.

In this paper, the panel relationship between energy consumption (ECP) and economic growth (GDP), is investigated for the thirty-one countries from 1971 to 2014. These countries are divided into two panels based on lower-middle-income and high-income-level economies. Traditional ADF unit root test is used to confirm the stationarity at first difference. Also, four panel unit root tests, namely LLC (2000), IPS (1997, 2003), Fisher (1999), and Hadri (2000) tests confirmed the stationarity of variables for both panels at first difference. Furthermore, the long-run relationship between ECP and GDP is explored by four advanced panel cointegration techniques, i.e., Kao (1999), Pedroni (1999, 2004), Fisher (1999), and Westerlund (2007). Moreover, the pairwise panel causality test is used to identify the Granger causality between ECP and GDP. Lastly, the dynamic OLS (DOLS) estimator of Saikkonen (1991) and the fully modified OLS (FMOLS) estimator of Phillips and Hansen (1990) is used to estimate the parameters of the cointegration relationship. According to the empirical results, ECP and GDP are cointegrated for both panels. Long-run Granger causality running from GDP to ECP for both income level economies is also revealed. The energy conservation policies can play a vital role in boosting economic growth, especially for lower-middle-income economies.

Infrastructure is a basic physical structure that is essential for the facilitation of society in terms of the provision of the basic framework that is required for the economy's output. The transport infrastructure is one of the most promising tools for generating economic growth and development because of its constructive impact on multidimensional aspects of society. The carbon emissions emanating from different sectors are used to capture the environmental quality in Pakistan and its association with road infrastructure of the country. Transportation is the main source of carbon emissions (GHGs), and road transport is the biggest emitter that accounted for more than 70% of emissions from GHGs in 2014 in Pakistan. We have used fully modified ordinary least square (FMOLS) and dynamic ordinary least square (DOLS) approaches to analyze the role of carbon emissions (aggregate and disaggregate forms) along with road infrastructure on economic growth for the period of 1972–2017. Moreover, before the main analysis, the co-integrating relationships are also analyzed in this study. Our findings pronounce that there is a positive observable relationship between road infrastructure and economic growth. However, the impact of carbon emissions (irrespective of aggregate or disaggregate forms) is negative on economic growth. The findings suggest that the improvements in economic growth can be achieved through road infrastructure structure development but at cost of deterioration of environmental quality (increase in carbon emissions). Although emissions diminish economic growth over time but on the other side, the economic incorporation increases through the investment in road infrastructure which is of assistance for the construction and manufacturing industry. [ABSTRACT FROM AUTHOR]

This study explores the causal effects of financial development and political stability on economic growth utilizing recent econometric techniques. The study utilizes yearly data spanning between 1996 and 2018. The study used Bayer and Hanck Cointegration, FMOLS, DOLS, and Breitung and Candelon frequency-domain causality techniques. The Breitung and Candelon technique's advantage is that it permits us to differentiate causality in the short term, medium-term, and long-term at different frequencies. The study's motive is to address the questions: What is the long-run and causal impact of political stability and financial development on economic growth? The findings from the FMOLS and DOLS long-run estimators revealed that political stability exerts a negative impact on economic growth while no evidence significant linkage between financial development and economic growth. Furthermore, the findings from the frequency-domain causality test revealed that in the short-run, medium-run, and long-run, political stability could predict economic growth in Nigeria, and there is no evidence of causality from economic growth to political stability in the short-run, medium-run, and long-run. Lastly, our findings reveal no causal interconnection from financial development to economic growth in the short-run, mediumrun, and long-run, while there is no evidence of causality from economic growth. [ABSTRACT FROM AUTHOR]

This article examines the nexus between financial inclusion index and economic growth in all eight South Asian Association for Regional Cooperation (SAARC) countries, using annual data from 2004 to 2017. In order to determine the possible long-run relationship between these variables, the study adopted the Pedroni panel co-integration test and two types of co-integration regression methods, the Fully Modified Ordinary Least Square (FMOLS) and the Dynamic Ordinary Least Square (DOLS) methods. The Pedroni panel co-integration test confirms the existence of a long-run relationship between financial inclusion and economic growth in the SAARC countries. The coefficients of FMOLS and DOLS indicate that the index of financial inclusion and selected control variables together support economic growth. In addition, the Granger causality test confirmed bi-directional causality between FI and economic growth. [ABSTRACT FROM AUTHOR]

Abstract Reducing energy intensity is an important element for Ethiopia to achieve its ambitious climate-resilient growth goals. Understanding the factors that determine energy intensity plays a crucial role for academics and policymakers to formulate sound energy conservation and energy efficiency policies. This article investigates drivers of energy intensity in Ethiopia over the period of 1974–2014. The ARDL bounds test approach to cointegration and FMOLS-based Hansen parameter instability test methods were applied to examine the long-run relationship among the variables. The result reveals that there is an inverted U-shape or Environmental Kuznets curve-type relationship between economic growth and energy intensity, implying that economic growth at early (industrialization) stage of development spurs energy intensity while delinking occurs at the later stages of development. Urbanization increases energy intensity, while impact of import is negative. The Toda–Yamamoto Granger causality test result shows a bidirectional causal relationship between import and energy intensity. Moreover, energy intensity Granger causes aid and industrialization.

The objective of the study is to evaluate different alternative and plausible hypothesis, i.e., Keynesian defense burden hypothesis, nonlinear hypothesis, and spillover hypothesis by controlling governance indicators in a panel of 5 Asian selected countries during a period of 2000 to 2016. The study employed panel Fully Modified OLS (FMOLS) and Dumitrescu-Hurlin panel causality estimates for robust inferences. The results confirmed the defense burden hypothesis where high military expenditures decrease country’s economic growth. The real interest rate, trade openness, and government education expenditures substantially decreases country’s per capita income due to market imperfection, arms import, and low spending on education. The political instability decreases economic growth while voice and accountability and regulatory control largely support country’s economic growth. The causality estimates confirmed the feedback relationship between i) per capita income and exports ii) trade openness and military expenditures, and iii) real interest rate and exports, while growth led military expenditures and arms conflict, military led exports and political instability, and trade led regulatory control established in causality framework.

Copyright of Econder International Academic Journal is the property of Econder International Academic Journal and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

The aim of this study is to analyze, the link between import and economic growth in Turkey over the period of 1980-2017. In the study, fixed capital investments, labor force and financial development are included in economic growth model as other explanotary variables. The import-led growth hypothesis is tested for Turkish economy through the ARDL bounds test, FMOLS estimation technique and Granger causality method. According to the empirical results, there exists a cointegration between the variables. Empirical results also reveal that import negatively affects economic growt in the long run. There exists no causality between import and economic growth. All the results suggest that the import-led growth hypothesis is not valid for Turkish economy. It is possible to derive an important policy implication that the export-oriented growth approach is favorable for sustainable growth. [ABSTRACT FROM AUTHOR]

The aim of this paper is to analyze and test the effects of capital market development on the per-capita GDP growth in Saudi Arabian economy covering the period of 1985-2018. An ARDL, FMOLS and Johansen tests are implemented. The stock market indicators: share price index, capitalization, liquidity, number of share transactions, and number of shares are employed using a log-linear eclectic model designed to fit the availability of data. Capitalization and liquidity came up with negative signs, contrary to the findings of lots of studies in economic literature. However, the share price index, number of shares traded, and the ratio of number of share transactions had the right signs as expected a priori. The findings raise serious questions about the size of the market, the steps and efforts that have been taken to deepen the capital market and their consequences on the function and potency of capital market in fostering per-capita GDP growth. Applying Granger causality test, share price index, market capitalization and number of shares traded do not granger cause per-capita GDP. They are significant at 5 percent level. Capital market authority (CMA) should draw a road map to accelerate deepening the capital market in order to serve economic growth. [ABSTRACT FROM AUTHOR]

Financial development and human capital’s crucial roles in economic growth have been widely recognized in the literature. However, a direct link between financial development and human capital, in the long run, has not been investigated, in particular in emerging markets in Asia. This study investigates the nexus between financial development and human capital for a group of nine emerging markets in the Southeast Asian region over the period 1990–2018. Econometric techniques allowing for cross-sectional dependence and panel co-integration, such as the dynamic least squares (DOLS) and fully modified least squares (FMOLS), are used. We also use three indicators as the proxies for financial development: broad money supply, bank credit, and private sector credit. Empirical findings from this paper indicate that financial development contributes positively and significantly to human capital accumulation. We also find that economic growth enhances the formation of human capital. Results from our Granger causality tests confirm a bi-directional relationship between financial development and human capital. Policymakers from the Southeast Asian emerging markets may need to enhance and extend financial development which is closely linked with human capital accumulation.

This study investigates the long run equilibrium relationship among military expenditure, financial development, energy use, economic growth and environmental degradation in Turkey for the period of 1960–2014. Ecological footprint and carbon dioxide emissions are used as separate proxies for environmental degradation. Fully modified ordinary least squares (FMOLS) estimator results suggest that military expenditure, energy use and economic growth increase the environmental degradation while financial development improves the environmental quality in Turkey. Toda Yamamoto (1995) causality test results reveal that there is a unidirectional causality running from military expenditure to CO2 emissions and ecological footprint; and a bidirectional causality between military expenditure and economic growth. The findings of the study confirm the existence of destruction theory for the case of Turkey. [ABSTRACT FROM AUTHOR]

Copyright of Journal of Financial Politic & Economic Reviews / Finans Politik & Ekonomik Yorumlar is the property of Journal of Financial Politic & Economic Reviews / Finans Politik & Ekomomik Yorumlar and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Transport sustainability is an important foundation for achieving sustainable development in an economy. Particularly, environmental policies cannot overlook the growing importance in the transport sector as the economy expands. In this context, it is necessary to investigate the relationship between transport energy consumption (TEN), transport economic growth (TGDP), and transport CO2 emissions (TCE) to formulate the reasonable and specific transport policies. This paper investigated the long-run elasticity and causality between TEN, TGDP, and TCE for the case of China using the panel data covering 30 provincial regions during the period 2004–2016. Firstly, the stationary of each variable series was examined using the panel unit root test. Secondly, the cointegrating relationship in bivariate models was investigated by employing the panel Pedroni cointegration test. Thirdly, based on the fully modified ordinary least squares (FMOLS), the long-run elasticity coefficients in bivariate models were estimated. Finally, the panel Granger causality test based on the vector error correction model was utilized to determine whether the causality existed between the variables. The empirical results indicated that: (1) each variable was found to be integrated of order one, and the cointegrating relationship existed in all bivariate modes. (2) The panel FMOLS tests revealed that the long-run elasticity of TCE to TEN was almost equal to the long-run elasticity of TEN to TCE; the long-run elasticity of TCE to TGDP was significantly higher than the long-run elasticity of TGDP to TCE; and the long-run elasticity of TEN to TGDP was significantly higher than the long-run elasticity of TGDP to TEN. (3) Importantly, the bidirectional causal relationships existed between the TEN, TGDP, and TCE both in the short-run and in the long-run. [ABSTRACT FROM AUTHOR]

Energy is an important production factor for the continuation of economic activities and sustainable development. With the innovations brought by industrialization and technology, the increasing use of energy in the last century brings with it the energy supply security problem. In this regard, the production and consumption of renewable energy is extremely important in the world. The aim of this study is to investigate the relationship between renewable energy production and economic growth for the 2000- 2016 period, 19 G20 member countries. In this context, firstly, horizontal cross-section dependency and homogeneity tests were applied for the countries in the panel data set. The stationarity of the series was examined by ADF and PP Fisher unit root tests. After obtaining stable series, the relationship between renewable energy production and economic growth was investigated by Kao and Johansen Fisher panel cointegration tests and the direction of the relationship was determined with FMOLS and DOLS test results. Empirical findings show that there is a positive relationship between edible energy production and economic growth. [ABSTRACT FROM AUTHOR]

In this paper, we have explored the relationship between three key indicators of the health of any economy, namely, human development index (HDI), foreign direct investment (FDI) and gross domestic product (GDP). Three alternative models were assessed in the study to investigate the dynamics of the cause and effect relationship between the three variables. Thirty countries were selected for the purpose of the study on the basis of a positive change in their HDI ranks from 2012 to 2017. Further, the countries were categorized into countries with very high, high, medium and low HDI ranks. Annual FDI, HDI and GDP data for the period from 1990 through 2016 were used to investigate the nature of the relationship among the selected variables. The proposed models testing the outcome-explanatory variable relationship between FDI, HDI, and GDP were tested using cointegrating regression with panel dynamic least square model (DOLS) and panel fully modified least square model (FMOLS). The findings of the study show that HDI and FDI are the statistically significant variables that positively impact the changes in GDP. Further, the impact of HDI is of larger magnitude than FDI. However, GDP and FDI were not found to exert any statistically significant impact on HDI for the period under the study. Similarly, HDI and GDP were also not found to exert any significant impact on FDI. Before applying DOLS and FMOLS, stationarity was confirmed using five panel unit root tests, namely, LLC, IPS, Fisher-type tests using ADF and PP and Hadri. Thereafter, Pedroni residual cointegration test and Kao residual cointegration test were used to confirm the existence of cointegration among the variables, which is a necessary condition for applying DOLS and FMOLS. The study has key implications for the policymakers in search of models and plans to boost GDPs of their respective countries. Since HDI exerts more than proportionate positive impact on GDP, governments can focus on improving the three components of HDI, namely, life expectancy, adult literacy and education enrolment to promote economic growth. Further, since FDI exerts a positive impact on GDP, policymakers can strategize to make more friendly policies to attract foreign investors. [ABSTRACT FROM AUTHOR]

Achieving the seventh Sustainable Development Goal which is clean energy at affordable prices depending on technological innovation is one of the most strategic objectives of Egypt, aiming at mitigating carbon dioxide emissions and enhancing sustainable economic growth (IRENA 2018b). Based upon this goal, the study explores the relationships among carbon dioxide emissions, technological innovation, alternative energy resources, economic growth, and financial development in Egypt over the period 1971–2014. Auto-regressive distributed lag (ARDL), fully modified ordinary least square (FMOLS), Stock and Watson dynamic ordinary least square (DOLS), and Toda-Yamamoto approaches are employed. The results show the existence of cointegration among the variables. Moreover, empirical results show that while technological innovation and alternative energy resources improve environmental quality, financial development and economic growth deteriorate it. The findings obtained from Toda-Yamamoto approach reveal the existence of bi-directional causal relation between environmental degradation and economic growth. Also, environmental degradation causes technological innovation and financial development causes environmental degradation and economic growth. Thus, several policy implications should be suggested to policymakers as enhancing the development of technological innovation especially in renewable energy sector to improve environmental quality. [ABSTRACT FROM AUTHOR]

Electricity energy as a production factor due to natural and clean efficiency, plays effective role in the sustainable growth and development each country. This study investigates the effect of electricity consumption on economic growth in provinces of the country and during the period 2004-2016. To achieve this goal is used of panel cointegration analysis and Fully Modified Ordinary Least Squares (FMOLS), Dynamic Least Squares (DOLS) and Pooled Mean Group (PMG) and Mean Group (MG) are used to estimate long-term coefficients and to determine the short and long term causality relationship, are used Panel Vector Error Correction Model (VECM). The empirical results indicate a significant effect of electricity consumption on economic growth in provinces of the country in all estimated models. Also, in models have been used the variables of labor force, investment, urbanization rate and literacy rate and their results indicate that there are positive and significant effects on economic growth. Also results of panel causality test shows that there is a bilateral relationship and long-term of electricity consumption to economic growth and vice versa. In addition, patterns results without regard to the Tehran indicate that this has dominant role in increasing electricity consumption.

The dynamic causal relationship between bank competition, financial access, and economic growth has been widely studied in many countries both developed and developing countries. However, the results of a lot of studies demonstrate a controversial point of view and diverse conclusions. This study aims, firstly to investigate the short-run dynamic causal relationship between bank competition, access to finance and economic growth. Secondly, to examine the long-run effect and causality relationship between bank competition, financial access, and economic growth. This study applied the quantitative method approach by employing PVECM, FMOLS, and DOLS. All data was collected from the Asia Development Bank (ADB) and World Development Indicators (World Bank) in the panel data set of 25 selected Asian countries during the period 1995-2018. This empirical study found strong evidence of the long-run effect that supports the market power hypothesis, which predicts that low competition adversely affects access to finance which consequently reduces economic growth. In addition, this study revealed that there was a long-run feedback causal relationship between access to finance and economic growth. Hence the financial access is one of the long-run engines of growth, in turn, economic growth also has a long-term significant effect and positively related to financial access. [ABSTRACT FROM AUTHOR]

In the context of remarkable economic growth and financial development in the emerging economies of East Asia, this paper attempts to shed light on the ecological consequences (CO2 emission) of economic growth, foreign direct investment and financial development in the selected ASEAN-5 economies. Drawing on the data from 1982 to 2014, we employed a set of quantitative techniques for panel data analysis which entailed Dynamic Ordinary Least Squares (DOLS) and Fully Modified OLS (FMOLS) approaches. Our findings indicate that financial and economic development, as well as FDI, have a statistically significant long-run co-integrating relationship with environmental degradation (CO2 emissions) in the under analysis economies. It showed that in ASEAN-5 countries, economic growth, financial development and FDI leads to an increase in environmental degradation. The quadratic term for economic growth showed a negative impact on environmental degradation i.e. Environmental Kuznets Curve (EKC). Our key findings manifest and emphasise the importance of appropriate policies for more inclusive economic and financial development and sustainable foreign direct investment which does not impede on the environment. Image 1 • Remarkable economic growth, financial development and FDI Influx weighs on the environmental quality in ASEAN. • Financial and economic development and FDI have a significant long-run relationship with environmental degradation. • Weak evidence of Environmental Kuznets Curve (EKC). • FDI leads to environmental degradation in ASEAN i.e. support for Pollution Heavens Hypothesis (PHH) in ASEAN. • Different aspect of financial development has varying impact on the Environmental degradation. [ABSTRACT FROM AUTHOR]

This study examines the causal relationship between financial development, liberalization and economic growth through technological innovation channel in five South East Asia countries during the period 1980–2012, using a fully modified ordinary least square estimation technique. We find that technological deepening is driven by deepening in the financial system and financial liberalization rather than changes in a country's market capitalization. We also find a negative effect from the financial openness, and a positive effect from financial deregulation. [ABSTRACT FROM AUTHOR]

The study investigates the dynamic relationship among remittances, export, exchange rate and economic growth in emerging (Brazil, Russian Federation, India, China and South Africa) economies using balanced panel data ranging from 1994-2013. Data for all variables have been extracted from World Bank Indicators in terms of US$. The Multivariate Panel Cointegration technique results demonstrate the existence of long run equilibrium relationships among observed variables. Employing the Fully Modified OLS Model (FMOLS), the study finds that remittances have significant negative impact on economic growth in Brazil, Russian Federation and India. However, remittances have significantly positive impact on economic growth in China. As a group FMOLS extends negative impact of remittances on economic growth across the selected emerging economies. Panel Vector Error Correction Model (PVCEM) has been adopted to show the long run and short run causality among the variables across the countries. The PVECM result reveals that there is a long-run causal relationship running from export and remittances to economic growth.

The objective of the paper is to investigate whether stock market development plays any role in the effect of foreign direct investment (FDI) on economic growth in Nigeria. Using annual time series data that span the period from 1981 to 2014, and employing the fully modified ordinary least squares (FMOLS) estimation technique, the empirical evidence indicates that FDI, domestic investment and stock market development positively and significantly affect economic growth, but the effect of the interaction between stock market development and FDI on economic growth is negative and significant, indicating that the Nigerian bourse is not yet fully developed to engender positive growth effect of FDI. The study further finds that government consumption expenditure and trade openness adversely affect the growth of the country’s real GDP per capita. Recommendations of the paper include efforts by the government to design and implement programmes and policies aimed at enhancing the attractiveness of the country to foreign and local investors, efforts by capital market regulators to enhance stock market efficiency, reduction of government consumption expenditures and import control.

The study investigates dynamics of expenditure on education and economic growth in selected 14 major Asian countries by using balanced panel data from 1973 to 2012. The results of Pedroni cointegration state the existence of long-run equilibrium relationships between expenditure on education and economic growth in all the countries. The FMOLS results revealed a positive and statistical significant impact of education expenditure on economic development of all the 14 Asian countries (Bangladesh, China, Hong Kong, India, Japan, Nepal, Pakistan, Malaysia, The Philippines, Saudi Arabia, Singapore, Sri Lanka, Thailand, and Turkey). Further, the panel vector error correction (PVECM) presents unidirectional Granger causality running from economic growth to expenditure on education both in the short- as well as in the long-run. But, expenditure on education only Granger causes economic growth in long-run in all the countries. As a group, the FMOLS shows a positive impact of educational expenditure on economic growth. The study argues that education sector is one of the important ingredients of economic growth in all 14 Major Asian countries. Education sector should be given priority, and a handsome share of total expenditure of the governments should be made on education sector by enhancing various elementary, higher and technical educations in the respective nations to have the skilled man power for the long-term economic development.