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In the context of significant environmental changes, the urgency of adopting green innovation has become increasingly apparent as a central mechanism for adjusting industrial structures in China. This transition serves not only as a crucial way to address pressing environmental challenges, but also as a fundamental strategy to improve the ecological efficiency of urban areas. Existing research mainly keeps a close eye on the unidirectional relationship between variables such as technological innovation and environmental protection. There is less relevant literature that has researched the cointegration relationship among green innovation, industrial structure, and eco-efficiency of cities. The essential role of green innovation and industrial structure in reaching a higher eco-efficiency of city are discussed in this research and the relationship among these three variables are analyzed by the evidence from cities in China from 2011 to 2019. The fact that the variables are cointegrated in the long run is evidenced by the results for the full sample. The sub-sample results report that in the eastern region, green innovation, industrial structure upgrading, and industrial structure rationalization could improve urban eco-efficiency. However, in Midwest regions where economic development is relatively backward, green innovation's effect on urban eco-efficiency is not in a significant positive way. The results obtained in this paper have implications for different cities in China to formulate corresponding policies on green innovation, industrial structure, and urban eco-efficiency. [ABSTRACT FROM AUTHOR]

The study of macroeconomic forces and the stock market is a dynamic field in finance because investors' interest changes due to their preference for high returns over lower returns and risk-averse investors are always desirous of mitigating risk across emerging economies are playing a pivotal role in the global investment communities. Therefore, this study focuses on various economic indicators that robust business growth. The primary purpose of this study is to evaluate macroeconomic forces' linkages with stock markets by applying a panel data analysis. Data was taken for the period 1999 to 2019 for Asian stock markets. Panel data econometric techniques have been used to analyze the data of the Asian equity market. Studies have taken stock market data from five emerging economies, i.e., Pakistan, China, India, Philippines, and Japan. Panel data results confirm that gross domestic product, interest rates, exchange rate, and money supply positively impact market return. However, correlation results reveal that market return strongly relates to foreign direct investment, interest rate, and money supply. The co-integration result also reveals the presence of a long-run relationship. Further results show that GDP has a leading behavior with market return, and market return has a leading behavior with GDP, CPI, ER, and IPI. [ABSTRACT FROM AUTHOR]

Purpose: The purpose of the paper is to explore the long-run impact of board governance and bank performance on executive remuneration. More specifically, the study addresses two objectives. First, the authors investigate the long-run relationship between pay and performance hold for the Indian banking industry. Second, the authors explore the moderating role of the board in explaining the relationship between executive pay and performance. Design/methodology/approach: The study uses multivariate panel co-integration approaches, i.e. fully modified and dynamic ordinary least square, to explain the co-integrating relationship between executive pay, governance and performance of Indian banks. The analysis is conducted for the period from 2005 to 2018. Findings: The results of co-integration tests reveal a long-run relationship between executive pay, board governance and bank performance. The long-run estimates produce evidence in favour of the dynamic agency theory, suggesting that the implications of asymmetric information can be mitigated by associating the current executive pay with the bank performance in the previous periods. The finding of this study reveals that improvements in the board quality serve as a monitoring tool to constrain excessive pay and moderate the executives' pay. Furthermore, the interaction of performance and board governance negatively impacts pay, supporting a substitution approach. It implies that setting optimal pay packages for executives necessitates enhanced and efficient board governance practices. Practical implications: The study recommends significant policy implications for regulators and the board of directors that executive pay significantly responds to the bank's performance and good board governance practices in the long run. Originality/value: This paper provides novel evidence of long-run pay-performance-governance relation using a panel co-integration approach. [ABSTRACT FROM AUTHOR]

The primary objective of this paper is to examine the relationship between finance and economic growth in a cohort of 16 economies within the MENA region spanning a four-decade period from 1980 to 2021. This study employs panel unit root and panel co-integration analyses to investigate this long-term nexus. The fully modified and dynamic Ordinary Least Squares (OLS) approaches are utilized to estimate the long-run coefficients. The findings underscore the existence of cross-sectional interdependence among these nations. Furthermore, Pedroni's panel co-integration research robustly supports the idea of a long-term co-integrating relationship between financial development and economic growth. Our long-run panel estimations reveal a positive and statistically significant impact of financial development on GDP per capita income growth. In addition to this broad analysis, this paper conducts a detailed time-series examination focused on a specific country to validate the robustness of the results. These findings further substantiate the favorable influence of financial development on income growth in the majority of MENA nations. Notably, private sector participation in these economies is found to be alarmingly low. As a result, a significant policy implication of this study underscores the urgent need for policymakers to prioritize measures conducive to private sector expansion. Moreover, enhancing financial inclusion, addressing the crowd-out effect, and tackling non-performing loans are critical areas requiring attention within the MENA region. Furthermore, our research highlights the potential benefits of developing stock markets as part of an optimal strategy to enhance both economic and income growth rates. In conclusion, this study contributes valuable insights into the finance–growth nexus in the MENA region, emphasizing the importance of financial development as a driver of economic prosperity and the need for targeted policy initiatives to support private sector growth and financial stability. [ABSTRACT FROM AUTHOR]

Ekonomik büyümenin önemli belirleyicilerinden biri olarak yatırımların finansmanı yurtiçi tasarruflar tarafından karşılanmasının yanı sıra kapitalist iktisadi sistemin küresel entegrasyonu arttıkça yatırımların dış tasarruflara olan bağımlılığı da artırmaktadır. Çalışma, literatürde Feldstein ve Horioka (1980) çalışması ile ortaya konan uluslararası sermaye hareketliliği arttıkça yatırım ve tasarruf arasındaki güçlü ilişkinin zayıfladığına ilişkin teorik çerçevenin geçerli olmadığına yönelik ampirik bulgulara dayanan hipotezi ekonomik küreselleşme olgusunu dikkate alarak yeniden ele almaktadır. Bu ilişkinin araştırılmasında literatürde sıklıkla çalışılan OECD ülkeleri ya da gelişmiş ekonomilerin dışında son kırk yılda küresel iktisadi kalkınmanın itici gücü olan gelişmekte olan ülke ekonomileri çerçevesinde ele alınmıştır. Çalışmada yapısal değişimleri modele içsel olarak yerleştiren Fourier panel eşbütünleşme testi ve nedensellik analizleri yapılmıştır. Sonuçlar gelişmekte olan ülkelerde yatırımların tasarruflara bağımlılığın ülkelere göre değişiklik göstermesine rağmen yatırımların tasarruf tutma katsayısının gelişmiş ülkelere nispeten düşük olduğu görülmektedir. Ayrıca bulgular yatırımların gelişmekte olan ülkelerin küresel kapitalist iktisadi sisteme entegrasyon derecesi ile anlamlı ilişkinin olmadığını, FH hipotezinde yer alan çelişkinin gelişmekte olan ülkeler için geçerli olduğunu göstermektedir.

Copyright of Journal of Research in Economics, Politics & Finance / Ekonomi, Politika & Finans Arastirmalari Dergisi is the property of Journal of Research in Economics, Politics & Finance 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 primary aim of this research is to investigate the long-run impact of carbon dioxide (CO2), methane (CH4), nitrous oxide (N2O), and arable land (ARL) on agricultural productivity (AGP) in SAARC countries from 1965 to 2016. To discover the long-term associations and causation among the underlying variables, robust panel co-integration methods, panel FMOLS and DOLS long-run estimators, and panel causality tests are employed. Panel co-integration results show a long-term link between agricultural production, CH4, N2O, CO2, and arable land. The key findings from FMOLS and DOLS indicate that methane and nitrous oxide have a negative impact on agricultural output, while carbon dioxide and arable land have a beneficial impact in the long-run analysis. The causality tests outcomes reveal that long-run causation is substantial for all variables tested. Furthermore, there is bidirectional causality between agricultural output and methane. The link between nitrous oxide and agricultural output is unidirectional. The causation between agricultural output and CO2 emissions is two-way, but in the short run, the connection running from CO2 emissions to agricultural output is stronger than the converse. As a result, the SAARC countries require stronger national measures to curb GHG emissions and reduce the negative long-run impact of extreme climate shocks on agricultural output. [ABSTRACT FROM AUTHOR]

In this study, the validity of the double dividend hypothesis for several African countries (Cameroon, Ivory Coast, Mali, South Africa, and Uganda) is investigated for the period of 1994–2017. The double dividend hypothesis claims that, in addition to reducing environmental pollution, environmental taxes can also increase employment. In this study, the validity of this hypothesis is examined with panel co‐integration and long‐run estimators. According to the findings obtained, environmental taxes increased environmental degradation and unemployment in Cameroon, environmental degradation in the Ivory coast, environmental degradation and employment in Mali, environmental restoration in South Africa and employment in Uganda. When the individual results obtained from the study are evaluated in general, it can be said that the double dividend hypothesis is not valid for African countries. The study proposes that taxation should be used as a financial incentive rather than a command‐and‐control policy to combat unemployment and environmental degradation. [ABSTRACT FROM AUTHOR]

Purpose ─ This article explores the relationship between government revenue, government expenditure, and economic growth for nine emerging market economies using annual data from 1991-92 to 2019-20. Method ─ This paper distinguishes itself from the existing literature through the application of co-integration tests, vector error correction, DOLS and FMOLS for an empirical investigation of a unique panel data set of select emerging economies across Asia, Africa, Europe and Latin America. A bi-directional causal long-run relationship between economic growth and government expenditure, as well as between government expenditure and government revenue, was found using standard panel co-integration tests. Findings ─ The long-run elasticities computed using VECM were confirmed from DOLS as well as FMOLS estimates. A one per cent increase in expenditure and revenue, in the long run, would result in an increase in GDP by 0.94 and 0.90 per cent, respectively. Similarly, an increase in GDP by one per cent would lead to an increase in government expenditure by 1.1 per cent. On the other hand, an increase in government revenue by one per cent would cause a corresponding increase in government expenditure by nearly one per cent. The findings of this research point to a positive association between government revenue, expenditure, and economic growth, which will be valuable to policymakers. Contribution ─ Our combination of country selection covering economies from different continents is a first of its kind to the best of our knowledge. Another contribution is the application of panel cointegration and panel error correction techniques to fully use the panel data set, while most previous studies utilised the typical time series modelling with individual time series data.

This study is the first effort to assess the long-term effects of change in climate on crop production in South Asian countries from 1991 to 2016 by employing the second-generation methods robust to cross-sectional dependence and slope heterogeneity. Using panel data with the panel dynamic least squares (PD-LS) method and several co-integration approaches, this study confirmed a long-term co-integration among considered variables. The long-run estimates revealed that climatic variables, including temperature and CO2 emissions, negatively affected crop production, suggesting that a 1% increase in temperature and CO2 emissions reduces crop production by 1.93% and 0.32%, respectively. Conversely, precipitation positively affects crop production in the long-run, indicating that a 1% surge in precipitation increases crop production by 0.52%. Moreover, non-climatic variables including cultivated area, income level, and financial development positively affected crop production in the long-run. Furthermore, a 1% surge in cultivated area, income level, and financial development enhances crop production by 0.29%, 0.13%, and 0.04%, respectively. The outcomes of the Dumitrescu-Hurlin causality test confirmed that the causal link among all variables is significant, and outcomes verify the previous findings. This study suggests that urgent attention should be given to various adaptation strategies, such as credit supply, cropped area expansion, irrigation infrastructure enhancement, and the introduction of improved kinds of major food crops to enhance agricultural productivity. Besides, agricultural extension authorities should provide information about climate change to farming communities to deal with the adverse impacts of sudden climate changes on productivity. [ABSTRACT FROM AUTHOR]

Purpose - This article explores the relationship between government revenue, government expenditure, and economic growth for nine emerging market economies using annual data from 1991-92 to 2019-20. Method - This paper distinguishes itself from the existing literature through the application of co-integration tests, vector error correction, DOLS and FMOLS for an empirical investigation of a unique panel data set of select emerging economies across Asia, Africa, Europe and Latin America. A bi-directional causal long-run relationship between economic growth and government expenditure, as well as between government expenditure and government revenue, was found using standard panel co-integration tests. Findings - The long-run elasticities computed using VECM were confirmed from DOLS as well as FMOLS estimates. A one per cent increase in expenditure and revenue, in the long run, would result in an increase in GDP by 0.94 and 0.90 per cent, respectively. Similarly, an increase in GDP by one per cent would lead to an increase in government expenditure by 1.1 per cent. On the other hand, an increase in government revenue by one per cent would cause a corresponding increase in government expenditure by nearly one per cent. The findings of this research point to a positive association between government revenue, expenditure, and economic growth, which will be valuable to policymakers. Contribution - Our combination of country selection covering economies from different continents is a first of its kind to the best of our knowledge. Another contribution is the application of panel cointegration and panel error correction techniques to fully use the panel data set, while most previous studies utilised the typical time series modelling with individual time series data. [ABSTRACT FROM AUTHOR]

Copyright of Journal of Management & Economics Research is the property of Journal of Management & Economics Research 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.)

Fiscal imbalances in China are widening; the problem of fiscal sustainability in each province is becoming increasingly serious. However, so far, few studies have focused on the issue of the fiscal sustainability of China's provinces. This paper will focus on it to clarify the degree of fiscal sustainability in China's provinces. In this paper, the GH test method is used to analyze the structural breaking of fiscal revenue and expenditure data of each province, the panel cointegration method is used to analyze the relationship between fiscal revenue and expenditure and DOLS is used to estimate the degree of fiscal sustainability of each province. It is found that the fiscal sustainability of most provinces in China, such as Beijing, Shanghai and Guangdong, is strong, while that of some provinces, such as Gansu, Qinghai and Xinjiang, is weak. This paper states that people should pay more attention to the fiscal sustainability of China's provinces, and provinces with weak fiscal sustainability should minimize unproductive expenditures while the central government should continue to give appropriate financial support to local governments. [ABSTRACT FROM AUTHOR]

Over the past few decades, there has been a global trend towards the decentralization of governments to the efficient provision of public goods and services. Providing uniform and one-sided training under centralized system supervision may lead to lack of competition and inefficient use of public resources. In this regard, this study seeks to investigate the relationship between financial decentralization and the quality of education in the provinces of Iran. In order to obtain a long-term relationship, FMOLS, DOLS and PMG methods have been used for the period 2006 to 2018. The results showed that the effect of financial decentralization on the number of high school graduates is negative and significant. In other words, financial decentralization has had a negative effect on the number of high school graduates. Also, the effect of income decentralization on educational per capita is positive and significant. This means that increasing income decentralization has increased the per capita education of each student, which increases the quality of education in schools. But the decentralization relationship is cost negative and significant. In addition, the effect of financial decentralization on the teacher-student ratio is positive and significant. Therefore, income and cost decentralization will increase the teacher-student ratio and thus increase the quality of education.

The primary objective of this paper is to examine the relationship between finance and economic growth in a cohort of 16 economies within the MENA region spanning a four-decade period from 1980 to 2021. This study employs panel unit root and panel co-integration analyses to investigate this long-term nexus. The fully modified and dynamic Ordinary Least Squares (OLS) approaches are utilized to estimate the long-run coefficients. The findings underscore the existence of cross-sectional interdependence among these nations. Furthermore, Pedroni’s panel co-integration research robustly supports the idea of a long-term co-integrating relationship between financial development and economic growth. Our long-run panel estimations reveal a positive and statistically significant impact of financial development on GDP per capita income growth. In addition to this broad analysis, this paper conducts a detailed time-series examination focused on a specific country to validate the robustness of the results. These findings further substantiate the favorable influence of financial development on income growth in the majority of MENA nations. Notably, private sector participation in these economies is found to be alarmingly low. As a result, a significant policy implication of this study underscores the urgent need for policymakers to prioritize measures conducive to private sector expansion. Moreover, enhancing financial inclusion, addressing the crowd-out effect, and tackling non-performing loans are critical areas requiring attention within the MENA region. Furthermore, our research highlights the potential benefits of developing stock markets as part of an optimal strategy to enhance both economic and income growth rates. In conclusion, this study contributes valuable insights into the finance–growth nexus in the MENA region, emphasizing the importance of financial development as a driver of economic prosperity and the need for targeted policy initiatives to support private sector growth and financial stability.

The current account balance is an important indicator which reveals information on a country’s economic situation such as investments, capital flows, and indebtedness. The main purpose of this study is to examine the current account balance conditions in emerging Asian countries. In this respect, the long-run and causality relationship between current account balance, economic growth, government expenditure, real interest rates, and foreign direct investment was examined. The panel data analysis was applied using the data dated 1986 to 2015. Our results revealed a causal effect from economic growth and government expenditure to current account balance mainly dependent on saving tendency.

Understanding the relationship between electricity consumption and economic growth is crucial for formulating efficient energy policies for all sectors in general, and for agriculture in particular. To study this, an empirical examination of the long-run co-movement and the causal relationship between electricity consumption and real gross state domestic product (GSDP) from agriculture and its allied sectors is attempted. The agricultural sector involves the use of different input technologies that are further influenced by electricity consumption. To account for this technology-enabling effect of electricity, we further take up an analysis of the relationship between electricity consumption and agricultural technology factors: fertilizer consumption, the share of irrigation, area under cereal, and the extent of mechanization. We use both state (data from 17 states for the period 1993–2017 for the electricity–GSDP relationship) and country-level data (for the period 1980–2018 for the electricity–technology factors relationship) in the analysis. Since short-period time series datasets analysis may yield unreliable and inconsistent results, we employed modern heterogeneous panel co-integration and panel-based error correction model techniques for analyzing the energy–growth linkage. When the heterogeneous states effect is taken into account, the empirical results fully support a positive long-run co-integrated connection between GSDP and electricity consumption. We could detect both long-run and short-run unidirectional causality running from electricity consumption to agricultural growth. Further electricity consumption was also found to augment the use of technology factors in agriculture. This calls for implementing policies and strategies for achieving higher electricity use in agriculture and improved efficiency in its utilization simultaneously. [ABSTRACT FROM AUTHOR]

Carbon emission has been documented as a significant component of greenhouse gas that has been a significant source of environmental distortion globally. Based on panel data of 15 nations from 1980 to 2017, this study empirically investigates the impact of energy consumption, economic growth, urbanization, and energy consumption on carbon emission using panel co-integration tests and pooled mean group ARDL (PMG-ARDL) techniques. We augment the model with urbanization to establish the role urbanization plays in energy consumption, economic growth, and carbon emission nexus. Findings confirm that in the long run and short run, urbanization has no significant effect on the environment quality. On the other hand, energy consumption was found to enhance environmental destruction significantly in the short run and long run. Additional findings confirmed that economic growth causes environmental distortion in the long run for the sampled nations. Government officials and policymakers need to pay special attention to enhance adequate energy, urban planning, and emission reduction without affecting the economic development to achieve urban-economic-energy sustainability, which is key to attaining a green and clean environment. [ABSTRACT FROM AUTHOR]

Innovation technologies have been recognized as an efficient solution to alleviate carbon emissions stem from the transport sector. The aim of this study is to investigate the impact of innovation on carbon emissions stemming from the transportation sector in Mediterranean countries. Based on the available data, Albania, Algeria, Bosnia and Herzegovina, Croatia, Egypt, Morocco, Tunisia, and Turkey are selected as the 8 developing countries; and Cyprus, France, Greece, Israel, Italy, and Spain are selected as the 6 developed countries and included in the analysis. Due to data constraints, the analysis period has been determined as 1997–2017 for the developing Mediterranean countries and 2003–2017 for the developed Mediterranean countries. After determining the long-term relationship with the panel co-integration method, we obtained the long-term coefficients with PMG and DFE methods. The empirical test results indicated that the increments in the level of innovation in developing countries have a positive impact on carbon emissions due to transportation if the innovation results from an increase in patents. An increase in the level of innovation in developed countries has a positive impact on carbon emissions due to transportation if the innovation results from an increase in trademark. As a result, innovation level has a positive effect on carbon emissions due to transportation, and this effect is stronger for developed countries. [ABSTRACT FROM AUTHOR]

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 increase in economic activity, particularly in transport, leads to a significant increase in emissions of pollutants, such as ammonia, arsenic and cadmium, at the European Union (EU) level. This can seriously impact human health and, consequently, public health spending. Based on data from 15 European Union countries from 1992 to 2020, a panel co-integration approach is used to study these pollutants' short- and long-term co-movements and per capita health expenditure. The results show a long-term relationship between ammonia, arsenic and cadmium emissions and per capita health spending, as they are panel-cointegrated. Ammonia and cadmium emissions exert a statistically significant positive effect on health expenditure in the short run, and arsenic emissions have a statistically significant positive impact in the long run. The forecast assessment of reductions in health spending resulting from policies to reduce emissions of air, land and water pollutants, such as ammonia, arsenic and cadmium, from the transport sector supports investments in its policies that reduce pressure on health spending. The reduction in annual healthcare expenditure is greater when these reductions are made sooner and more severely. Indeed, varying the reduction in emissions for each pollutant by 10% and 100%, respectively, from the first year for all countries over a 3-year period results in an average annual reduction in health spending of 2.05% and 51.02%, respectively. However, if we wait until the third year, the annual reduction is only 0.77% and 17.63% respectively. • We examine the impact of emissions of pollutants, such as ammonia, arsenic and cadmium, on public health expenditure. • We use a panel cointegration approach based on data from 15 European Union countries from 1992 to 2020 to investigate short- and long-run co-movements. • We show that ammonia and cadmium emissions exert a statistically significant positive effect on health expenditure in the short run, and arsenic emissions have a statistically significant positive impact in the long run. • We evaluate the magnitude of the financial health costs of ammonia, arsenic, and cadmium emissions. • Stricter policies should be implemented to reduce pollutant emissions as soon as possible to decrease health expenditure. [ABSTRACT FROM AUTHOR]

The paper focuses on the mutual interaction between export from Turkey to Central Asian and Turkic Republics (the CATRs) and exported product range. For measuring the range of exported products, we use economic complexity index (ECI) that refers to the knowledge intensity accumulated in the country’s exported products. In addition, ECI provides information regarding the countries’ export structures and income levels. We explore how export levels of Turkey and the CATRs, which have common religion and ethnicity, and the countries’ ECI scores interact with each other. In this regard, we demonstrate how export affects the countries’ ECI for both the CATRs and Turkey. For this purpose, we study the possible relationship between mutual trade volume and the countries’ ECI scores by employing Westerlund’s cointegration analysis, Pooled Mean Group Estimator (PMGE) model and Dumitrescu-Hurlin’s panel causality method. We used the data on the researched countries for the period from 1996 to 2015 collected from official web sites. We have found that export from Turkey to the CATRs and Turkey’s ECI scores have a long-term relationship. Additionally, there is a unidirectional causality relationship from Turkey’s export to the CATRs to Turkey’s ECI score and from the CATRs’ ECI scores to the CATRs’ export to Turkey. To sum up, our findings support the hypothesis that higher trade volume between Turkey and the CATRs increases the export of complex products for both sides. Based on the results, stronger mutual trade relations increase the total gain not only for Turkey but for the CATRs, too. Lastly, in future studies, we plan to cover all Post-Soviet countries and reveal the relations between bilateral trade and the range of exported products.

Understanding the relationship between electricity consumption and economic growth is crucial for formulating efficient energy policies for all sectors in general, and for agriculture in particular. To study this, an empirical examination of the long-run co-movement and the causal relationship between electricity consumption and real gross state domestic product (GSDP) from agriculture and its allied sectors is attempted. The agricultural sector involves the use of different input technologies that are further influenced by electricity consumption. To account for this technology-enabling effect of electricity, we further take up an analysis of the relationship between electricity consumption and agricultural technology factors: fertilizer consumption, the share of irrigation, area under cereal, and the extent of mechanization. We use both state (data from 17 states for the period 1993–2017 for the electricity–GSDP relationship) and country-level data (for the period 1980–2018 for the electricity–technology factors relationship) in the analysis. Since short-period time series datasets analysis may yield unreliable and inconsistent results, we employed modern heterogeneous panel co-integration and panel-based error correction model techniques for analyzing the energy–growth linkage. When the heterogeneous states effect is taken into account, the empirical results fully support a positive long-run co-integrated connection between GSDP and electricity consumption. We could detect both long-run and short-run unidirectional causality running from electricity consumption to agricultural growth. Further electricity consumption was also found to augment the use of technology factors in agriculture. This calls for implementing policies and strategies for achieving higher electricity use in agriculture and improved efficiency in its utilization simultaneously.

This study examines the relationship among energy use, real gross domestic product, and exports and thereby the impact of energy conservation for the quest of a sustainable environment-gross domestic product growth in the panel of five South Asian countries. The aggregate production function framework is estimated by employing first/second generational panel co-integration-based models for the panel data covering the years 1980–2014. The empirical findings demonstrate a statistically significant panel error correction mechanism among real gross domestic product, capital, labor, and energy use in both export-added and export-excluded models. The findings of panel causality test depict a significant causal relationship running from export and energy use towards gross domestic product in the long run. Furthermore, a significant feedback relationship between energy use and gross domestic product and between exports and gross domestic product has been found in the short run. These findings of vector error correction model-based panel causality test imply that reducing/cutting the extant aggregate energy use (fossil fuel dominant) via conservation policies are somewhat wanting and could be implemented at the cost of lower gross domestic product and export growths, ceteris paribus. Therefore, for reducing the level of carbon emissions arising from fossil fuel-based energy use and for a sustainable aggregate energy use to the production sector per se, there is an immense need of developing environment friendly/green sources of energy in the region. These consolidated and concerted strides of developing and substituting environment friendly energy options into the extant aggregate energy use will, inter alia, ensure the sustainability of environment-gross domestic product growth in South Asia. [ABSTRACT FROM AUTHOR]

To boost economic growth, SAARC countries resorted to trade liberalization policies since mid-1980s, therefore, now it is high time to evaluate the outcomes of this outward-oriented trade regime. Available literature confined the potential gain with the trading country's status of the financial sector development. This study therefore empirically investigates the complementarity between domestic financial sector and trade openness for its growth effectiveness in the case of SAARC region. The empirical analysis basis upon the panel of six SAARC countries, using panel co-integration technique for the period 1980-2014. The empirical estimates of FMOLS and DOLS indicate that countries holding relatively developed domestic financial sectors enjoy larger gains from trade openness, which finally translates into economic progress. To be exact, the country's domestic financial sector plays a complementary role between openness and growth in SAARC countries. Results hence suggest that SAARC countries need to lay higher emphasis on the development of the domestic financial sector. [ABSTRACT FROM AUTHOR]

This study uses panel co-integration methods and Granger causality examines to scrutinize the dynamic causal relationship between carbon dioxide (CO2) emissions, gross domestic product (GDP), renewable energy (RE), agriculture value added (AVA) and population for the thirteen developed and developing Asia Pacific countries (APCs) covering the period 2005-2017. The results evaluate in two ways: in the short-run, Granger causality test (GCT) is operating from AVA to GDP and express bidirectional causation among GDP and agriculture. In the distant future, there is causality from RE and Population to CO2emissions. The short-run causality is important due to the agriculture sector which causes in boosting GDP while economic development, population and clean energy (including waste and combustible) raise CO2 emissions causes in the reduction of production and services. The research finds out that reduction in AVA, GDP increase, uncontrolled population and lack of attention on clean energy are interrelated in creating emissions. Policy recommendation insights that Asian Pacific establishments should control the population, less use of fossil fuel, encourage clean energy technologies such as solar and wind to fight with global warming.

This study examines long term and short term inter-linkage between liquidity dimensions and equity returns in oil and gas sector of an emerging stock market for the time period 2009-2015.Conventional liquidity ratio and Amihud ratio are used to capture Price impact. Roll estimator is employed to quantify the effective spread and transaction cost aspect of liquidity. The depth of market is measured through volume and turnover rate. Pedroni cointegration, Granger causality and vector error correction model have been applied in panel data setting. The Pedroni cointegration analysis provides evidence about the existence of long term interaction between liquidity indicators and the equity returns. The VECM reports that liquidity influences equity returns in short run and speed of adjustment is high. Moreover, bi directional casualty is observed between liquidity and equity returns. The results suggest that local market liquidity is an important driver of expected returns. The study further implies that liquidity is vital for asset pricing. Average liquidity is priced and liquidity also predicts future returns. Moreover liquidity shocks are positively correlated with return shocks. Therefore, investors must be vigilant about liquidity trends while making investment decisions.

The present study explores the linkages among Indian and six international stock market indices. High-frequency data (5 min) for a period of 1 year (June 2017–May 2018) are taken into account to assess short-term and/or long-term co-movement among seven world indices, namely NIFTY, DAX, DOW, CAC, EUROSTOXX, FTSE and S&P. The panel unit root test, panel co-integration test and panel Granger causality test are used to determine the association among selected markets. Results of the study provide evidence of significant co-integration among stock market indices in different countries. In the short term, the Indian stock market index is found to possess bidirectional causality with the US stock market indices, namely DOW and S&P. Additionally, no lead–lag relationship is found between NIFTY and the European stock market index. Findings of the study have important implications for investors, fund managers and portfolio investors. [ABSTRACT FROM AUTHOR]

The developing world is facing pivotal challenges in recent times. Among these, global warming has ominous repercussions on every segment of society, thus tracing its underlying causes is imperative. This research attempts to investigate the impact of urbanization and energy consumption on carbon dioxide emissions (CO2) for a panel of 8 Asian countries (Bangladesh, China, India, Indonesia, Malaysia, Nepal, Pakistan, and Sri Lanka) over the period 1982 to 2017. The analyses are executed using panel co-integration and Granger causality techniques. The main findings of panel co-integration reveal a long-run relationship between urbanization, energy consumption, and CO2 emissions. Furthermore, the results indicate a positive and significant impact of urbanization and energy consumption on CO2 emissions, indicating that urban development and high energy consumptions are barriers to improve environmental quality in the long run. The results also highlight bi-directional causality between energy consumption and urbanization, while unidirectional causality exists between energy consumption and CO2 emissions. Based on the obtained results, this study offers useful policy implications for plummeting carbon emissions. [ABSTRACT FROM AUTHOR]

This paper analyzes the impact of defense spending on income inequality in 14 NATO countries, using SIPRI data for the period 1977–2007. We account for potential endogeneity by employing a novel instrumental variables approach. Specifically, we use the predicted "shift-share" defense as an instrument, in the fashion of Bartik (Who benefits from state and local economic development policies? WE Upjohn Institute for Employment Research, Kalamazoo, 1991). Our identification strategy indicates that defense causes inequality to decrease. The short-run elasticity of inequality with respect to military expenditure is − 0.075. This finding withstands several tests of robustness. Importantly, similar results are obtained when the long-run relationship is scrutinized via the implementation of second-generation panel co-integration and causality techniques, robust to cross-sectional dependence. [ABSTRACT FROM AUTHOR]

Rapid urbanization is being increasingly recognized as a significant factor of environmental pollution across the world. However, the significance of sustainable urbanization in controlling both pollution and population remains either limited in scope, in the case of developed countries, or less researched, in the case of developing nations. To fill this gap, the present study employed both theoretical and empirical tools to investigate the significant link between sustainable urbanization, pollution and non-agricultural output. In order to empirically examine the supposed link among the key variables mentioned above, the present study considered a panel of the world’s top 20 polluting countries for the 1991–2018 period, which significantly includes both developed and developing nations. Panel vector error correction model and panel co-integration techniques were employed to derive the possible correlation between the variables through sustainable urbanization. Empirical findings show an absence of equilibrium relations among the three variables in the panel of developed countries. However, the study clearly finds that all the three indicators maintain long-run associations for the panel of developing countries. Furthermore, in the short run, the results determine unambiguously that there are significant causal interplays between any two sets of variables and the remaining one variable for both the panel data of developed and developing countries. On the other hand, short-run interplays among the variables we considered exist for both developed and developing economies. From the perspective of policy formulation, the present study shows that policy makers from both the developed and developing nations should be cautious before encouraging urbanization, at least in the short term. However, the combined effects in the short and long term suggest policy makers should be more careful before encouraging urbanization in developing economies.

This paper investigated the causal relationship between energy consumption (EC), carbon dioxide (CO2) emissions and economic growth for three selected North African countries. It uses a panel co-integration analysis to determine this econometric relationship using data during 1980–2012. Recently developed tests for panel unit root and co-integration tests are applied. In order to test the Granger causality, a panel Vector Error Correction Model is used. The conservation hypothesis is found; the short run panel results show that there is a unidirectional relationship from economic growth to EC. In addition, there is a unidirectional causality running from economic growth to CO2 emissions. A unidirectional relationship from EC to CO2 emissions is detected. Findings shown that there is a big interdependence between EC and economic growth in the long run, which indicates the level of economic activity and EC mutually influence each other in that a high level of economic growth leads to a high level of EC and vice versa. Similarly, a unidirectional causal relationship from EC to CO2 emissions is detected. This study opens up new insights for policy-makers to design comprehensive economic, energy and environmental policy to keep the economic green and a sustainable environment, implying that these three variables could play an important role in the adjustment process as the system changes from the long run equilibrium.

It is known that overworking as well as deficiency of work (plenty of free time) are major factors of a suicide on an individual level which allows when passing to the level of a real social group (employees) to suppose of existence of a certain optimum of working time or a parabolic (U-shaped) connection between the suicide rate and an average duration of working time. From the theoretical point of view the supposed parabolic dependence of the level of prevalence of suicides from an average duration of working time of employees is described from the point of view of suicidology: excessive increase of working time is an external tendency which prevents satisfaction of actual needs of an employee and limits physically the space (off-work time) for their realization. Multidirectional tendencies form a life conflict which has crucial significance when transferring to a suicidal phase. The objective of this article consists in a qualitative assessment of an influence of “an average duration of working time” on the level of prevalence of suicides when other things are fixed (economic, social, religious and others) in a relatively stable social situation. For the econometric analysis, reliable and comparable data of the European database of detailed mortality data of the World Health Organization and Eurostat are used for 22 European countries for the period from 1998 till 2012. Based on analysis of a dynamics of the studied variables different hypothesis have been made: 1) about existence of statistically significant linear or logarithmic dependence of the level of prevalence of suicides from an average factual duration of working time inside a country 2) about existence of a parabolic (U-shaped) dependence of the level of prevalence of suicides from an average factual duration of working time between countries. A set of panel unit root tests and stationarity testify that the examined variables are unsteady variables with integratedness order I(1). The results of Pedroni panel cointegration tests show that the studied variables are likely cointegrated. The models of panel regression of linear, logarithmic and parabolic specifications are actualized: namely the model for mean values, the model with fixed effects and the model with random effects. As a result of econometric analysis it was determined that the difference in the level of prevalence of suicides of employees in timing inside one country is best explained by a logarithmic dependence from an average factual duration of working time by using a model with fixed effects and a difference between countries – by U-shaped dependence by using a model with random effects. As a result it was established that using the minimal solution of the equation of the parabolic model with random effects, the optimal value of the average actual duration of the working week (38,7 hours) is determined, at which the minimum of suicides is reached. Existence of a best value of working time opens up opportunities for scientifically proven regulation of working time towards optimum in order to reduce the number of suicides.

There are two methods to determine the impact of real exchange rate on balance of foreign trade. While previous studies, which aim to uncover the nexus between foreign balance and real exchange rate, use foreign trade statistics to measure the volume of foreign trade, some other recent studies utilize bilateral trade statistics. By following current literature, this study draws from the model of Rose and Yellen (1989) and analyzes the relationship between the volume of bilateral foreign trade and bilateral real exchange rate in Turkey and her 20 major trading partners for the period from 1995 to 2015. To this purpose, the presence of cross-sectional dependence among the countries was investigated, and long-term coefficients for each country were obtained with the Mean Group Estimator (MG) method developed by Pesaran and Smith (1995). In conclusion, the findings revealed that bilateral real exchange rate has a statistically significant negative effect on the bilateral foreign trade balance in 10 out of 20 countries in the panel. This negative relationship means that depreciation of the Turkish Lira (TL) against the currency of trading partners improves bilateral foreign balance, and thus, the J-curve effect in these countries is verified. Moreover, Canning and Pedroni (2008) panel causality test results indicate that bilateral real exchange rates cause bilateral foreign trade balance in Turkey with her 14 trading partners.

This study aims to explore the causal relationship between fiscal deficit (FD) and current account deficit (CAD) along with policy recommendations based on long-run and short-run dynamics and sensitivities. A panel data span from 1990 to 2019 is analyzed based on panel unit root tests, panel co-integration with auto-regressive distributed lag (ARDL), panel co-integration regression with fully modified ordinary least squares (FMOLS) and dynamic ordinary least squares (DOLS), and causal analysis with the Dumitrescu and Hurlin (DH) technique. The results disclosed that all tested variables are stationary at the first difference I(1) except the real interest rate (IR), which is stationary at level I(0). The ARDL estimates suggested that there is a long-run relationship between tested variables and 92% annual convergence is possible for long-run equilibrium. The FMOLS and DOLS estimates indicated that the CAD is sensitive towards the FD and the exchange rate. The DH causality test showed that the CAD is significantly affecting the FD, supporting the current account targeting hypothesis. Furthermore, it is observed that the interest rate is acting as a moderating factor between the FD and the CAD because it causes both the deficits. Thus, reverse causality is concluded from the CAD to the FD. These results have macroeconomic implications for fiscal policy in the Association of South-East Asian Nations (ASEAN-10).

This study estimated unbalanced panel data analysis to investigate the relationship among CO2 emissions, GDP, renewable and non-renewable energy utilization, and foreign direct investment (FDI) inflow in 26 European countries. Moreover, we investigated the role of environmental regulations in validation of the pollution haven hypothesis (PHH) in two EU country groups, namely 1–4th and 5th enlargement countries of EU, since their adaptation periods of environmental legislation may indicate differences. Empirical results confirmed the validation of environmental Kuznets curve (EKC) hypothesis and PHH for overall EU countries. However, results differ between country groups in EU. For example, while results confirm the evidence of EKC in 5th enlargement countries, they do not support in 1–4th enlargement countries. Moreover, while environmental regulations do not play an important role in the validity of PHH, they are important factors in the validity of EKC in overall EU countries. Granger causalities showed that economic growth causes energy consumption and FDI inflow. Since renewable energy mitigates the emissions, EU countries should enhance green technology and energy efficiency to ensure sustainable development. What is more, EU countries need to tighten the environmental regulations on FDI inflow. Therefore, our results support the new framework by European Commission on screening the FDI inflows throughout the EU zone. [ABSTRACT FROM AUTHOR]

This empirical study's intent was to assess the role that remittances play in the economic growth and self-development of low-income country regions. The diverse results in previous studies necessitate using a proper methodological approach. Namely panel co-integration analysis allows gauging the long-run interactions among growth, remittances, and self-development. Having confirmed, via the augmented Dickey-Fuller (ADF) test, the dynamic equilibrium of the data, gleaned from 31 low-income countries over the 1991–2015 time period, the cointegration between economic growth and remittances was established through the Johansen panel test. Pertinent to heterogeneous cointegrated panels, the fully modified ordinary least squares (FMOLS) results show that remittances have a significant, positive effect on long-term economic growth. Besides, the study's empirical results also unconceal the significant, long-term effects of economic growth and remittances, facilitating self-development in low-income regions, in terms of finance, savings, trade, and labor-force participation, except that of household consumption. And an endogeneity test strongly suggests the need for policymaking towards obtaining maximum benefits from the increased inflows of remittances. Despite its limitations, the study offers pragmatic policymaking recommendations, along with future research directions. [ABSTRACT FROM AUTHOR]

The sovereign debt crisis in the Eurozone has rekindled the use of the North–South (core-periphery) terminology to refer to the heterogeneity of countries belonging to the Economic and Monetary Union (EMU). In the gold standard literature, this geographical partition had already been employed to oppose the fiscal profligacy and subsequent problems of convertibility of southern countries against the fiscal probity and long convertibility records of their northern counterparts. We provide statistical evidence that the group of countries that, with available data for 1870–1938, exhibited convertibility problems during the classical gold standard, for this reason called the pre-WWI "sometimes-floaters", shared a pattern of fiscal dominance. This finding for the sometimes-floaters (southern European and South American countries plus Japan) differs from the non-fiscal dominance pattern that we obtain for the pre-WWI "never-floaters" (northern Europe and North America countries) when the Great War and its aftermath years are omitted. We also show that the presence of fiscal dominance was partly due to the lower levels of tax efficiency and political stability in the South. [ABSTRACT FROM AUTHOR]