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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.

This paper adds to the existing body of knowledge by incorporating the role of fiscal decentralization (FD) in influencing CO2 emissions. Therefore, this study looked at the effect of FD on CO2 emissions in the presence of nonrenewable energy consumption (NRE), renewable energy consumption (REN), gross domestic product (GDP), and trade openness (TOP) for the period 1994–2018 in Japan. Thus, the current work intends to fill this knowledge gap by employing econometric techniques such as Bayer and Hanck cointegration, dynamic ordinary least squares (DOLS), fully modified ordinary least squares (FMOLS), and canonical cointegration regression (CCR). Additionally, the frequency domain causality analysis is used in the investigation to determine the causal impact of FD, NRE, REN, GDP, and TOP on CO2 emissions. The novelty of the frequency-domain approach is that it can differentiate between nonlinearity and causality levels and show causality among parameters with different frequencies. The DOLS, FMOLS, and CCR results reveal that NRE, GDP, and TOP augment CO2 emissions in Japan, whereas FD and REN increase the quality of the atmosphere. Furthermore, the frequency causality test results show that FD, REN, GDP, and TOP have implications for CO2 emissions in the long run, while NRE raises CO2 emissions in the medium run. As a policy direction, the current study suggests expanding renewable energy consumption in Japan by emphasizing more on Sustainable Development Goals (7, 8, and 13).

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.

This research reveals the impact of oil export on some food and agricultural products from January 2013 to August 2021. For this purpose, we used ARDL model to evaluate short −term and long−term relations between variables. Moreover, we also used FMOLS and DOLS dynamic models as well as CCR canonic cointegration regression model to get reliable data from the empirical research. The outcomes confirm the existence of cointegration among the variables. ARDL unveils that oil export has a positive impact on some food and agricultural products in a long term. Besides, the positive relations between the growth of food −agrarian products and oil export show the importance of these data for the diversification of the non −oil sector and the economy in Azerbaijan.

Driven by the development of the oil and gas sector, Qatar has made remarkable economic achievements over the past few decades. However, Qatar’s high dependence on fossil fuels has resulted in a rapid increase in its CO2 emissions. As such, the country may be facing a trade-off between achieving continued economic growth and carbon emissions reductions. This study empirically analyzes the relationship between economic growth and carbon emissions in Qatar, using annual data of income and CO2 emissions from 1970 to 2018. The analysis was conducted by employing the Environmental Kuznets Curve (EKC) framework and the Decoupling Index (DI) approach. The EKC was evaluated using the Fully Modified Ordinary Least Squares cointegration method. Additionally, a robustness check was conducted by Canonical Cointegrating Regression (CCR) cointegration method to confirm the results attained by FMOLS. The findings support the evidence of an N-shaped relationship and suggest that the country is currently undergoing expanding relative decoupling. Although findings show that Qatar’s per capita emissions have been declining over the last few years, additional measures such as energy conservation, energy efficiency and renewable energy are required to allow cost-effective carbon emission reductions.

Research scholars have diverted their attention towards the effect of biomass energy use on ecological footprints. Although recent research has investigated this association, the link between ecological footprints and biomass energy consumption has not provided consistent results. Therefore, this research attempts to fill the gap by examining the ecological footprints-biomass energy consumption nexus in the context of environmental Kuznets curve over the period of 1990–2016 in South Asian Association for Regional Corporation (SAARC) countries. Moreover, this work incorporates globalization, natural resources, and economic growth (GDP) for empirical analysis. In doing empirical analysis, we applied some econometric analysis to deal with the issue of cross-sectional dependence in the data. The outcomes of fully modified ordinary least squares and dynamic ordinary least squares estimations show that biomass energy consumption increases ecological footprints in SAARC countries. Moreover, globalization and GDP are also increasing ecological footprints. Environmental Kuznets curve cannot be validated in estimated countries. The Dumitrescu-Hurlin causality test confirms one-way causality from biomass energy usage to ecological footprints. On the base of empirical results, several policy implications are suggested for SAARC countries. [ABSTRACT FROM AUTHOR]

This research is mainly aimed at determining the effect of renewable energy (RE), education expenditures, and CO2 emissions on health expenditures in selected South Asian countries. There is an insufficient number of studies that investigate the linkages between health expenditures (HE) and CO2 emissions in South Asian countries. This study combined RE and gross domestic product (GDP) to identify their effect on health spending. We utilized the annual data of 1990–2018, and applied FMOLS and DOLS estimators over the panel data of five South Asian countries. According to the DOLS and FMOLS long-run results, GDP, RE, and education expenditures are negatively associated with health expenditures. This suggests that renewable energy puts less pressure on environmental quality, which leads to less health spending in the five South Asian countries studied. The empirical results also show that HE and CO2 emissions are positively and significantly related, which implies that an increase in CO2 emissions increases the financial burden on the various countries' health sector. This study, therefore, recommends the usage of renewable sources to improve public health and to help lower health expenditures. To achieve sustainable development, it is also important to increase investment in the educational sector in the various countries. [ABSTRACT FROM AUTHOR]

Copyright of Istanbul Journal of Economics / İstanbul Iktisat Dergisi is the property of Istanbul Journal of Economics / Istanbul Iktisat Dergisi 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.)

ICT has been considered a crucial player in environmental quality in the present age of industrial revolution and technological advancement. This study, therefore, seeks to examine the effects of ICT on environmental quality including technological innovation in selected Asian developing countries. A panel data that spanned from 1990 to 2018 is utilized to pursue the objectives of this study by applying second-generation panel approaches. In the long run, an inverted U-shaped relationship between the ICT index and CO2 emission is found by FEM and FMOLS estimators, indicating that environmental pollution decreases after attaining a threshold level of ICT development in selected Asian developing countries. The study reveals that technological innovation has a negative and significant influence on reducing CO2 emission, leading to energy efficiency and diminishing the intensity of energy used by inventing environmentally friendly technologies. Besides, electricity consumption and economic growth have positive and significant effects on the environment however, a negative and significant effect is found in the case of trade openness. The interactive effect of ICT and economic growth decreases the level of pollution while the moderate effect of ICT and technological innovation worsens the environmental quality in sample countries. The findings reveal that the role of ICT and technological innovation in mitigating environmental degradation still needs improvement in sample countries. The use of environmentally friendly ICT products and more green technological innovation are needed to improve energy efficiency by providing more fiscal incentives and infrastructures and enforcing environmental laws and regulations in the sample countries. [ABSTRACT FROM AUTHOR]

Introduction: In recent decades, global economic growth and industrialization have increased the demand for the consumption of energy. The increasing energy demand is met by burning fossil fuels, which emit air pollution and greenhouse gas emissions. After the industrial revolution, energy generation abnormally increased the amount of greenhouse gases emission, critically damaging the environment. In this regard, the purpose of this study is to investigate the determinants of carbon dioxide emissions (CO2) as an indicator of environmental quality and air pollution. Material and methods: This study has proposed a long-run relationship between CO2, economic growth, energy consumption, trade openness, financial development, and urbanization for a global panel of 11 countries spanning the period 2000-2015 using Fully Modified Ordinary Least Square (FMOLS) and Dynamic Ordinary Least Square (DOLS). In the first step, the LLC and IPS unit root tests were performed to examine the nonstationarity properties of the dataset. Then, Pedroni and Kao co-integration tests were applied to identify if there is a correlation between variables in the long term. In addition, the F (Chow) test was used to detect the best model. The software package used for estimation and analysis of the models was Eviews 10. Results and discussion: This paper first performed a panel unit root test proposed by Levin, Lin, and, Chu (LLC) and Im, Pesaran and, Shin (IPS) to examine the null hypothesis that all the series have a unit root. The results of IPS test indicated that the null hypothesis was rejected only for urbanization, implying that this variable was stationary. However, all tests confirmed that variables were stationary after the first-difference. It is hereby informed that variables were first-difference stationary. Our results suggest that there is a need to examine co-integration among variables. In addition, we conduct Pedroni and Kao co-integration tests, the results of which rejected the null hypothesis of no co-integration. The results of the F-test indicated that the panel model was the right choice. To help us choose between the fixed effects or random effects estimators, we conduct the Hausman test, where the null hypothesis was that the preferred model has random effects. Our results from the Hausman test did not reject the null hypothesis, suggesting that the random effects estimator was more appropriate for our data than the fixed effects estimator. The results from the FMOLS and DOLS estimations indicated that energy consumption from renewable sources, trade openness, financial development, and urbanization had a negative impact on CO2 emissions, while the energy consumption from non-renewable sources had a positive impact. Conclusion: The results of the research imply that policymakers should focus more on public awareness of renewable energy, mainly in solar and wind power to alleviate environmental pressure and CO2 emission. The findings also suggest that the governments should set a price per ton on carbon i.e. a carbon tax. Furthermore, developed countries should transfer sophisticated technology to emerging and undeveloped countries to generate electricity and avoid unsafe climate change. [ABSTRACT FROM AUTHOR]

Attracting foreign tourists could have a positive impact on the economy through the income achieved, But this requires the provision of minimums that have a determining effect on tourists’ decisions about whether choose or avoid entering a particular country. One of the most important variables influencing the decision is related to safety. The present article was to investigate the effect of institutional political risk index and its sub-indices on attracting tourists. Hence, MENA countries during the period 1995 to 2016 were selected as the test sample. To estimate the models we used FMOLS[1], and results showed that political risk as total factor has a determinant impact on attracting tourists. Also, the estimation showed the internal and external conflict sub-indices among other political risk ones have had a greater effect on attracting foreign tourists. [1] Fully Modified Ordinary Least Square

Abstract This study investigates the role of economic well-being and economic freedom as drivers of renewable energy consumption using the share of renewables in total energy consumption in Africa. To achieve this, the study employs a panel data of 32 African countries over the period 1996-2017. To deal with identification challenges associated with panel time-series data, we use the Dynamic Ordinary Least Squares econometric technique. As part of our findings, first, we have evidence that increasing economic well-being in Africa increases the share of renewables in total energy consumption to a point after which it turns negative (inverted U shape). Second, the disaggregated measures of economic freedom show that both property rights and tax burden decrease the share of renewables in total energy consumption. On the contrary, an increase in trade freedom and business freedom measures increases the share of renewables in total energy consumption. Toward the goal of promoting access to affordable, reliable, sustainable, and modern energy for all by 2030, governments in Africa should actively encourage trade freedom and business freedom to enhance the share of renewable energy consumption. Similarly, reducing the tax burden will promote the share of renewable energy consumption. Likewise, we call for further investigation into our evidence of a negative relationship between property rights and the share of renewables in total energy consumption.

Purpose – This paper aims to empirically investigate the impact that financial sector reforms have on foreign direct investment (FDI) in Ghana. Design/methodology/approach – Composite financial sector reform index was constructed, which was made up of various forms of reform policies that were implemented from 1987 to 2016. The auto regressive distributed lag bounds test was used to establish cointegration between variables. Having controlled for other covariates that affect FDI such as trade openness, exchange rate, gross domestic product per capita, inflation and by using the fully modified ordinary least squares method, the estimations are robust as it uses a semi-parametric correction to avoid for any possible issues of endogeneity and serial correlation. Findings – Results from the paper reveal that financial sector reform deepening boost FDI with a 2.167% increase in FDI following from a unit percentage improvement of the financial sector reforms. Considering the various categories of reforms, the results reveal that competitive reforms have the highest impact on FDI followed by privatization reforms with positive and significant elasticity coefficients of 2.174% and 0.726%, respectively. Behavioral reforms revealed a positive effect on FDI, albeit insignificant. Originality/value – The paper contributes to policy by providing empirical evidence on the effect of financial sector reform on FDI inflows in Ghana. As far as the review of literature is concerned, this paper provides the foremost empirical evidence on the subject with sole emphasis on Ghana. Thus, this paper suggests the deepening of the financial sector reforms, improving competition and maintaining macroeconomic stability.

The main aim of the study is to assess the impact of various forms of capital on the formation of gross value added in individual segments of the Polish economy. The parameters of production functions describing the impact of variables representing physical capital and labour on gross value added in Poland were estimated on the basis of the Cobb-Douglas function. Panel data for individual Polish provinces covering the 2003–2015 period were used for the estimation. Due to the possible correlation of explanatory variables with the random component, the parameters were estimated by a fully modified least squares method. The results of the study confirm the existence of differences between the impact of individual factors of production on gross value added in various segments of the Polish economy. In most segments, the elasticities of production with respect to labour are greater than the corresponding elasticities with respect to capital. Statistically significant technical and organisational progress was also confirmed. The statistical significance of unobservable fixed effects for individual provinces was also confirmed for all types of economic activity.

Somalia is recovering from a long-period of civil unrest and political instability. The urbanized population are growing at unprecedented growth rate which ultimately results in an increase in energy demand. To this end, this study assesses the effect of urbanization on energy demand in Somalia while controlling the effects of economic growth and population growth. To achieve the aim, the study employs fully modified ordinary least square (FMOLS), canonical cointegration regression (CCR) and impulse response function (IRF) with time series data spanning from 1990 to 2018. Before the long-run model estimation, the study utilizes Augmented Dickey-Fuller (ADF) and Philips’s Perron (PP) tests to check the unit root problem, and they demonstrate that all the variables are stationary at first difference I (1). Furthermore, the empirical results indicate that urbanization impedes energy consumption, whereas economic growth and population growth increase energy demand in the long-run. Besides, the result of IRF demonstrate that one standard deviation shock in urbanization (lnUB) results in energy consumption to decrease (lnEC) in the whole 10 periods. This calls for the Somali policy makers to consider urbanization as an effective determinant while targeting energy conservation policy in order to mitigate the fossil fuel energy use.

Agriculture sector is major sufferer of climate change both at a global level as well as at India level. Cereals account for about 92 % of India's total food grain output and climate change has a significant influence on the production of cereals. This study aimed to evaluate the long-term and short-term effects of climatic and non-climatic variables, specifically temperature, precipitation, cereal area, total cropped area, fertilizer consumption, and pesticide consumption, on cereal production in India. The study included annual time series data that covered the period from 1960 to 2018, covering a period of 58 years. Various econometric techniques were employed to examine these relationships. The validity of a long-term and short-term relationship among the relevant variables included in the study was validated by employing the Autoregressive Distributed Lag (ARDL) technique and the Johansen cointegration test. The ARDL model's estimation outcomes reveals that input factors such as cereal area became a key factor in rising cereal production, as evidenced by its positive coefficient. Similarly, fertilizer consumption and precipitation had positive effects on production in the long run whereas total cropped area and minimum temperature has little influence over the results of production both in short run as well as long run. Furthermore, the long-term findings were also supported using econometric tools like Canonical Cointegrating Regression (CCR) and Fully Modified Least Squares (FMOLS). These methods confirmed that variations in cereal production in India were significantly influenced by both climatic factors and agricultural inputs and factors. The study emphasizes the urgency for policymakers to prioritize proactive measures aimed at reducing the adverse impacts of climate change on cereal production in India. This necessitates a comprehensive strategy integrating sustainable practices, technological innovations, and robust policy frameworks to ensure resilient agricultural sectors and sustainable food production., Competing Interests: The authors declare that they have no competing interests., (© 2024 The Authors.)

The objective of the study is to determine the electricity use, and tourism industry environmental impacts, and increase in CO 2 emissions in Pakistan. What are the linkages of foreign direct investment, intercountryal trade, gross domestict product, and CO 2 emissions. The study has applied the Autoregressive distributed lag (ARDL) method to analysis the data set from 1985 to 2023. The robustness test is applied using Dynamic Ordinary Least Square (DOLS), and Fully modified ordinary least squares (FMOLS). The results reveal that the increase in the electricity use, and tourism industry has significant negative impacts on CO 2 emissions in both short- and long-run. The increase in intercountry trade effects the Domestic Product growth (GDP) growth and causes to increase in use of fossil fuels, which are the major source of CO 2 emissions. The increase in foreign direct investment (FDI) increase the GDP growth, and FDI also increase the CO 2 emissions in Pakistan. The results suggests that the incresae in the renewal energy consumption for the electricity production and transportation can help to decrease the CO 2 emissions in Pakistan., Competing Interests: Authors declared that they have not any conflict of interest of this research paper. The authors conclude that the relationship between tourism and CO2 emissions is “complex” and that “tourism can have both positive and negative environmental impacts.” However, they also emphasize the positive impacts of tourism, such as job creation and economic growth. This could be interpreted as a biased conclusion that is designed to promote the tourism industry., (© 2024 The Authors.)

Climatic changes are posing serious threats to crop production and food insecurity across the globe. This study explores the dynamic relationship between changing annual temperature and production of major crops such as wheat, rice, bajra, jowar, maize, barley, gram, sugar cane, mastered oil, and cotton in Pakistan from 2000 to 2019 through an eclectic production model. The estimated result of panel econometric analysis revealed a significant negative effect of rising temperature on selected crop production in the long run with an insignificant impact in the short run. Among other explanatory variables, the area under cultivation and fertilizer input have significant positive effects in both the long run and the short run. Improved quality seeds revealed insignificant effects and urging authorities to enhance quality research to develop climate change resilient crops. This study urges Pakistan to improve agriculture technology along with adopting other greenhouse gas mitigation, such as forestation and clean energy, and water conservation policies. [ABSTRACT FROM AUTHOR]

The aim of this study is to investigate the relationship between environmental degradation, health, and institutional quality in 17 Middle East and North African (MENA) countries. We use a panel cointegration analysis to determine the long-run relationship over the period 1996–2018, using both FMOLS and DOLS methods. Our results suggest that environmental degradation affects negatively the health status in the long run in MENA countries. However, the effect of environmental degradation on health can be ameliorated through the presence of good institutional quality. Therefore, policymakers in MENA countries should enhance the role of good governance in order to ensure the successful implementation of environmental laws. [ABSTRACT FROM AUTHOR]

There has been growing literature focusing on empirical evaluation of the key determinants of income distribution across the countries for the last three decades. The present study aims to assess the impact of political regime and shadow economy on income inequalities in Pakistan over the period 1975 to 2016. Two estimation techniques, namely, fully modified ordinary least squares (FMOLS) and autoregressive distributive lag (ARDL) model, have been used for estimation purposes. The findings indicate that democratic regimes and shadow economies significantly contribute to the worsening of income inequalities in the country. Furthermore, the results also reveal that democracy reinforces income inequalities promoting the impact of the shadow economy in Pakistan. [ABSTRACT FROM AUTHOR]

Copyright of Erciyes Akademi is the property of Erciyes Universitesi Sosyal Bilimler Dergisi 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.)

Introduction: In recent decades, global economic growth and industrialization have increased the demand for the consumption of energy. The increasing energy demand is met by burning fossil fuels, which emit air pollution and greenhouse gas emissions. After the industrial revolution, energy generation abnormally increased the amount of greenhouse gases emission, critically damaging the environment. In this regard, the purpose of this study is to investigate the determinants of carbon dioxide emissions (CO2) as an indicator of environmental quality and air pollution. Material and methods: This study has proposed a long-run relationship between CO2, economic growth, energy consumption, trade openness, financial development, and urbanization for a global panel of 11 countries spanning the period 2000-2015 using Fully Modified Ordinary Least Square (FMOLS) and Dynamic Ordinary Least Square (DOLS). In the first step, the LLC and IPS unit root tests were performed to examine the nonstationarity properties of the dataset. Then, Pedroni and Kao co-integration tests were applied to identify if there is a correlation between variables in the long term. In addition, the F (Chow) test was used to detect the best model. The software package used for estimation and analysis of the models was Eviews 10. Results and discussion: This paper first performed a panel unit root test proposed by Levin, Lin, and, Chu (LLC) and Im, Pesaran and, Shin (IPS) to examine the null hypothesis that all the series have a unit root. The results of IPS test indicated that the null hypothesis was rejected only for urbanization, implying that this variable was stationary. However, all tests confirmed that variables were stationary after the first-difference. It is hereby informed that variables were first-difference stationary. Our results suggest that there is a need to examine co-integration among variables. In addition, we conduct Pedroni and Kao co-integration tests, the results of which rejected the null hypothesis of no co-integration. The results of the F-test indicated that the panel model was the right choice. To help us choose between the fixed effects or random effects estimators, we conduct the Hausman test, where the null hypothesis was that the preferred model has random effects. Our results from the Hausman test did not reject the null hypothesis, suggesting that the random effects estimator was more appropriate for our data than the fixed effects estimator. The results from the FMOLS and DOLS estimations indicated that energy consumption from renewable sources, trade openness, financial development, and urbanization had a negative impact on CO2 emissions, while the energy consumption from non-renewable sources had a positive impact. Conclusion: The results of the research imply that policymakers should focus more on public awareness of renewable energy, mainly in solar and wind power to alleviate environmental pressure and CO2 emission. The findings also suggest that the governments should set a price per ton on carbon i.e. a carbon tax. Furthermore, developed countries should transfer sophisticated technology to emerging and undeveloped countries to generate electricity and avoid unsafe climate change examine co-integration among variables. In addition, we conduct Pedroni and Kao co-integration tests, the results of which rejected the null hypothesis of no co-integration. The results of the F-test indicated that the panel model was the right choice. To help us choose between the fixed effects or random effects estimators, we conduct the Hausman test, where the null hypothesis was that the preferred model has random effects. Our results from the Hausman test did not reject the null hypothesis, suggesting that the random effects estimator was more appropriate for our data than the fixed effects estimator. The results from the FMOLS and DOLS estimations indicated that energy consumption from renewable sources, trade openness, financial development, and urbanization had a negative impact on CO2 emissions, while the energy consumption from non-renewable sources had a positive impact. Conclusion: The results of the research imply that policymakers should focus more on public awareness of renewable energy, mainly in solar and wind power to alleviate environmental pressure and CO2 emission. The findings also suggest that the governments should set a price per ton on carbon i.e. a carbon tax. Furthermore, developed countries should transfer sophisticated technology to emerging and undeveloped countries to generate electricity and avoid unsafe climate change. [ABSTRACT FROM AUTHOR]

Air pollution has become a threat to human health in urban settlements, ultimately leading to negative impacts on overall economic system as well. Already developed nations and still developing countries both are at the risk of air pollution globally. In this scenario, this work aims to investigate the associations of asthma (AS) and acute upper respiratory infection (ARI) patients with satellite-based aerosol optical depth (AOD) and meteorological factors, i.e., relative humidity (RH), temperature (TEMP), and wind speed (WS). We applied second-generation unit root tests to provide empirical evidence. Two sets of unit root tests confirmed mix order of integration, and the other Westerlund co-integration test further showed strong linkages between estimated variables. Fully modified ordinary least square (FMOLS) and dynamic ordinary least square (DOLS) tests were applied, only to explore that TEMP and WS lower the number of AS and ARI patients, but RH and AOD increase the number of patients. Therefore, in accordance with these findings, our study provides some important policy instruments to improve the health status in megacities of Pakistan. [ABSTRACT FROM AUTHOR]

The debates on the effect of agricultural productivity on environmental quality have received great importance from researchers and policymakers. On one hand, agricultural productivity is considered to promote economic growth and environmental quality, and on the other hand, increase profitability through higher agricultural productivity encourages cropland expansion which causes deforestation and degrades the environment. In view of the foregoing, this study attempts to examine the effect of agricultural total factor productivity on carbon dioxide emissions using a panel of 38 sub-Saharan Africa (SSA) countries over the period 1981–2016. The outcome from the Fully Modified Ordinal Least Square and Canonical Cointegration Regression models reveal that the link between agricultural total factor productivity and carbon dioxide emissions in SSA shows a U-shaped relationship. This implies that agricultural productivity initially reduces carbon dioxide emissions to a certain point, beyond which higher agricultural productivity increases carbon dioxide emissions, contradicting the Borlaug hypothesis. Likewise, income has a U-shaped relationship with carbon dioxide emissions, implying that the Environmental Kuznets curve hypothesis does not hold for SSA. Further findings show that urbanization and trade openness increase carbon dioxide emissions. Thus, policies that improve environmental outcomes in the agricultural sector should be promoted.

This study investigates the role of energy consumption in environmental degradation and checks the validity of the environmental Kuznets curve (EKC) and pollution haven hypothesis (PHH) for the South Asian economies. The model is also controlled for population growth. The dynamic panel data model is estimated through Fully Modified Ordinary Least Square (FMOLS) rigorously. The results reject the possibility of the existence of EKC but ensure the prevalence of PHH. The study suggests that the South Asian countries should focus on attracting clean foreign investment, whereas the renewable energy production is critical for climate change mitigation. The study also stresses the financial institutions' active role in providing easy loans for promoting research and development in environmentally friendly production practices. [ABSTRACT FROM AUTHOR]

CO2 emissions are the leading causes of deterioration in air quality and global warming. Likewise, it has been shown that clean energy reduces air pollution, so this would be a way out of environmental pollution. Some previous studies have focused on knowing the determinants of environmental pollution; however, they have omitted the State's role. Thus, this study explores the long-term nexus between CO2 emissions and renewable energy, energy efficiency, fossil fuels, GDP, property rights from 1995 to 2019 in nine developed countries. The results reveal a long-term equilibrium relationship in developed European countries, but not in developed non-European countries. The main results show that renewable energy and energy efficiency are negatively correlated with CO2 emissions. In developed European countries, a 1% increase in renewable energy consumption represents a 0.03% decrease in CO2 emissions. Finally, some policy measures are suggested to achieve environmental sustainability. [ABSTRACT FROM AUTHOR]

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]

Higher productivity growth in emerging market economies (EMEs) vis-à-vis advanced economies (AEs) during 2000s has been a key factor shaping the diverging views on currency misalignments (overvaluation/undervaluation) in EMEs. Against this backdrop, this paper provides an estimate of equilibrium exchange rate based on Behavioural Equilibrium Exchange Rate (BEER) model. Using annual data from 1994-2020 for 10 EMEs and employing panel cointegration methods, it finds that the real effective exchange rate (REER) in EMEs is driven by its fundamental determinants such as the Balassa-Samuelson effect. Among other determinants, an improvement in terms of trade, net foreign assets position and an increase in interest rate differentials vis-à-vis the US are found to appreciate the REER, while an increase in government debt depreciates it. The findings indicate that the equilibrium exchange rate of a country experiencing higher economic growth could move upward due to high productivity growth, which should not be treated as loss of external competitiveness. [ABSTRACT FROM AUTHOR]

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• The spread of the shadow economy hinders the effectiveness of fiscal rules in reducing public debt. • A powerful impact of the shadow economy on public debt was proved in low-income countries. • To increase the efficiency of fiscal rules, governments should work towards reducing the shadow economy and corruption. This paper provides an analysis of the role played by fiscal rules and the shadow economy in the evolution of public debt. Thus, we investigate the effectiveness of fiscal rules in limiting the level of indebtedness in the presence of a shadow economy (SE) in 194 advanced, emerging, and developing countries over the period 1995–2021. The SE harms public revenue collection and leads to an increase in the budget deficit. Better management of public finances is difficult to achieve in the presence of a SE. We find that governments should try to limit the spread of SE to achieve sustainable public finance and maintain public indebtedness within reasonable limits. The results from the cointegration technique suggest that in the long run, the efficiency of fiscal rules is conditioned by the decrease of the SE, and only after this prerequisite is attained can a favorable evolution of public debt be expected. The empirical findings confirm the significant contribution of the SE to the public debt increase and the ineffectiveness of the fiscal rules applied. [ABSTRACT FROM AUTHOR]

Bu araştırmanın amacı, 2009-2018 döneminde aylık verilerden yararlanarak Türkiye hayat sigortası piyasasında yoğunlaşmanın piyasa büyümesi üzerindeki etkisini incelemektir. Bu araştırmada piyasa yoğunlaşmasının ölçümünde , HHI ve Entropi indeksleri kullanılmıştır. Johansen eşbütünleşme testi bulgularında Türkiye hayat sigortası piyasasında yoğunlaşma ile piyasa büyümesi arasında uzun dönemde anlamlı bir ilişki tespit edilmiştir. Ayrıca DOLS, FMOLS ve CCR tahmin bulgularına göre HHI ve değerleri ile piyasa büyümesi arasında negatif yönlü ilişki bulunurken, Entropi değerleri ile piyasa büyümesi arasında pozitif yönlü ilişki bulunmaktadır. Analizden elde edilen bu bulgular SCP yaklaşımında öne sürülen yoğunlaşma ile piyasa büyümesi arasındaki negatif yönlü ilişkiyi doğrulamaktadır. Bu bulgulara göre hayat sigortası piyasasında etkinliğin geliştirilmesi için rekabeti destekleyici politikaların üretilmesi gerekmektedir.

Today, the role of economic resiliency in reaction to the shocks to the economy of countries has been one of the most important topics and has attracted the attention of researchers and experts of the world to itself. Given the importance of the subject, the persent study has examined, the effect of the triple dimensions of globalization (economic, social and political) and knowledge development and its components (the human skills and sources, the information and communication technology and finally, the innovation system), on the economic resiliency of oil producing developing countries during the period 2007 to 2015 using FMOLS method. The results of this study emphasize the positive effects of developing the knowledge, its components, and the triple dimensions of globalization on the resiliency of the economy. The numerical coefficients, 0.21, 0.11 and 0.04 respectively, of human skills and sources, the information and communication technology, the innovation system, indicate that the human skills and sources have the most effect on the resiliency.

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.

Purpose. The purpose of this study was to investigated the impact of commercial bank credits on agricultural output in Nigeria over the period 1980 to 2015 by setting three specific objectives which are to examine the trend of commercial bank credit and agricultural output in Nigeria; to investigate the effect of commercial bank credit on agricultural output in Nigeria and to investigate the effect of commercial bank credit on subsector of agriculture in Nigeria. The trend analysis and the impact of commercial bank credit on subsector of agriculture in Nigeria make this work unique and different from other studies in this area. Trend analysis was used to achieve the first objective and fully modified ordinary least square (OLS) for objective two and three. Methodology. The study employed Fully Modified Ordinary Least Squares (FMOLS) approach. Findings. It was evidenced that interest rate on commercial banks’ credit to agriculture and deposit money bank’s assets are statistically significant in determine agricultural output in Nigeria within the period considered. Also, commercial bank loan on agriculture and deposit money bank’s assets determine the output of crop production in Nigeria; commercial bank loan on agriculture and interest rate on commercial banks’ credit to agriculture determine the output of livestock production in Nigeria and commercial bank loan on agriculture and interest rate on commercial banks’ credit to agriculture determine the output of forestry in Nigeria while commercial bank loan on agriculture and interest rate on commercial banks’ credit to agriculture determine the output of fishing in Nigeria. Limitations. This study is limited because the study does not include other variables that determine the output of agricultural sector in Nigeria. Also, other theories and methods can still be used by other researcher to make it different from this work. Originality. This is an original work and has neither been published in any other peer-reviewed journal nor is under consideration for publication by any other journal.

The determinants of FDI inflows have been a subject of unremitting debate in the economic literature over the years. However, the role of country risk has received inadequate attention, especially in the context of the Visegrád countries, which comprise the Czech Republic, Hungary, Poland and Slovakia. Hence, this study examined whether country risk matters for FDI inflows into the Visegrád Four for the period 1991–2020. This study accounted for cross-sectional dependency, structural breaks and heterogeneous slopes in the panel of the four countries by employing the dynamic common correlated effect estimator. Additionally, country-wise fully modified least-squares regression was conducted for each country to test the robustness of the estimates. The empirical results revealed that country risk matters for the FDI inflows into the Visegrád countries, as it has a negative effect on the FDI inflows. Furthermore, both the overall panel and country-wise regressions established that economic and political risks are essential determinants of the FDI inflows, as both have a negative relationship with the FDI inflows. However, financial risk had weak and mixed impacts on the FDI inflows in the overall panel and country-wise regressions, respectively. These research outcomes highlight the need for appropriate macroeconomic and government authorities in the Visegrád economies to enhance the market capabilities of their economies by improving and upholding the social, institutional, corporate and macroeconomic structures, and as a way of achieving better country risk attributes.

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This study aims to assess what determines/improves the overall multidimensional nature of the financial development index and its sub-indices. For this purpose, we use data over the period 1998 to 2017 for 9 countries from the Asia-Pacific region. The hypothesis of no long-run relationship between variables is tested via the three-panel co-integration test i.e. Kao test, the Pedroni test, and the Johansen test. We also examine the impact of these variables on each index through long-run dynamic estimation. We utilize FMOLS and DOLS for this purpose. All the three-panel co-integration tests suggest a long-run relationship among variables. Findings from long-run dynamic estimation indicate that efficient regulation of financial services and control over prices by the government significantly influences the financial depth, financial efficiency, and financial access indices. The financial freedom index measured by regulation of financial services negatively influences the indices, suggest that too much government regulation could distort the market. Also, an increasing probability of default of the country's banking system adversely affects the sub-indices of financial development. These findings suggest that too much government regulation of financial services and control over prices along with default of country banking system could worsen the country's financial development situation and vice versa. The promulgation of prudent regulatory policies by financial regulatory institutions is the need of the time to ensure full access to financial services, soundness, and stability of the financial sector. [ABSTRACT FROM AUTHOR]

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]

During the current epoch, information and communication technology (ICT) is considered as one of the core drivers towards women empowerment. The principal concern of the underlying study is to evaluate dynamic linkage among ICT, women empowerment, fertility rate, labour force and trade openness for selected South Asian countries from 2000 to 2016 by mean-group and pooled mean-group estimators that are robust to endogeneity and heterogeneity. The outcomes infer that ICT enhances women empowerment in South Asian countries. However, fertility rate negatively contributes to women empowerment. Sensitivity analysis using fully modified ordinary least square (FMOLS) method is applied to check the validation, consistency, and robustness of the study for future policy implications. The analytics surmise future strategy for women empowerment with confined ICT expansion and discouraging fertility in South Asian countries.