Carbon emissions and industrial growth: an ARDL analysis for Pakistan

2016 ◽  
Vol 10 (4) ◽  
pp. 642-658 ◽  
Author(s):  
Muhammad Irfan Javaid Attari ◽  
Matloub Hussain ◽  
Attiya Y. Javid
Keyword(s):  
Economic Growth ◽  
Carbon Dioxide ◽  
Climatic Change ◽  
Industrial Sector ◽  
Series Data ◽  
Clear Understanding ◽  
Industrial Growth ◽  
Content Type ◽  
The Impact

Purpose This paper is a direct extension of the work by Hussain et al. (2012). They have investigated a long-term relationship between climatic change and economic growth in case of Pakistan. Agricultural sector plays an important role in economic field, whereas industrial sector is the main source of carbon dioxide (CO2) emission. Therefore, this study aims to replace economic growth variable with industrial growth in case of Pakistan. Design/methodology/approach Investigation is made on the basis of the environmental Kuznets curve by using the time series data during the period 1971-2009. The per capital carbon dioxide (CO2) emission is used as an environmental indicator and per capita industrial income as the economic indicator. Different econometric tools including augmented Dickey–Fuller, autoregressive distributed lag and Granger-causality test are used to verify this relationship. Findings The empirical findings will help the policy-makers of Pakistan in developing new standards and monitoring networks for reducing CO2 emission. It is essential to extend the current research work at provincial and different sectors levels in order to have clear understanding about the impact of current emission rate. Originality/value This study replaces economic growth variable with industrial growth in case of Pakistan because the industrial sector is the main source of carbon dioxide (CO2) emission. This study is to investigate a long-term relationship between climatic change and industrial growth in case of Pakistan.

scholarly journals Impact of health capital on economic growth in Singapore: an ARDL approach to cointegration

2018 ◽  
Vol 45 (2) ◽  
pp. 340-356 ◽  
Author(s):  
Idowu Opeoluwa Isreal Akingba ◽  
Shivee Ranjanee Kaliappan ◽  
Hanny Zurina Hamzah
Keyword(s):  
Economic Growth ◽  
Health Expenditure ◽  
Series Data ◽  
Correction Coefficient ◽  
Health Capital ◽  
Substantial Impact ◽  
Content Type ◽  
Per Capita ◽  
The Impact

Purpose The purpose of this paper is to analyze the long-term impacts of health capital on economic growth in Singapore from 1980 to 2013. Design/methodology/approach Autoregressive distributed lag (ARDL)-ECM methodology and several diagnostic and specification tests were used to estimate the impact of health capital on economic growth on time series data covering the period 1980-2013. Findings The results confirm that health capital (measure by health expenditure per capita) positively and significantly affects Singapore’s economic growth in the long run. In addition, the equilibrium error correction coefficient lagged by one in the short-run is approximately 83.25 percent for all estimated variables, implying a considerably high speed of long-term adjustment to equilibrium following a short-term shock. Moreover, the Toda-Yamamoto’s Granger causality estimation reveals that there is a unidirectional causality from health expenditure per capita to GDP per capita. Research limitations/implications The findings imply that Singapore’s economic growth could be improved significantly if expenditure on health capital is increased. This eventually would have a substantial impact on human productivity which leads to improved output per capita. Thus, policy makers and/or the government should strive to create institutional capacity to improve basic health service by strengthening the health institutions infrastructure that produces healthy and quality manpower. Originality/value Grounded on the premises that there are little or no studies on the impact of health capital on Singapore economy, this paper provides new evidence on the potential effect of health capital on Singapore’s economic growth over the last three decades. Also, this study explore the causal effect (unidirectional or bidirectional) between health capital and economic growth.

Does Public Debt Service Expenditure Crowd-Out Economic Growth? Empirical Evidence from an African Developing Country

2019 ◽  
Vol 64 (3) ◽  
pp. 23-38
Author(s):  
Talknice Saungweme ◽  
Nicholas M. Odhiambo
Keyword(s):  
Economic Growth ◽  
Public Debt ◽  
Time Series Data ◽  
Policy Formulation ◽  
Debt Service ◽  
Series Data ◽  
Long Run ◽  
Short Run ◽  
The Impact

Abstract This paper contributes to the ongoing debate on the impact of public debt service on economic growth; and it provides an evidence-based approach to public policy formulation in Zimbabwe. The empirical analysis was performed by applying the autoregressive distributed lag (ARDL) technique to annual time-series data from 1970 to 2017. The study findings reveal that the impact of public debt service on economic growth in Zimbabwe is negative in the short run but positive in the long run. The results are suggestive of the existence of a crowding-out effect of public debt service in Zimbabwe in the short run and a crowding-in effect in the long run. In view of these findings, the government should consider fiscal and financial policies that promote a constant supply of long-term finance, long-term fixed investments, and extension of a government securities maturity structure so as to ensure sustainable short- and long-term public debt service expenditures. The study further recommends the strengthening of non-distortionary revenue mobilisation reforms to reduce market distortions and boost domestic investment.

The impact of financial development, economic growth and energy consumption on environmental degradation

2015 ◽  
Vol 26 (5) ◽  
pp. 666-682 ◽  
Author(s):  
Madhu Sehrawat ◽  
A K Giri ◽  
Geetilaxmi Mohapatra
Keyword(s):  
Economic Growth ◽  
Energy Consumption ◽  
Financial Development ◽  
Environmental Degradation ◽  
Series Data ◽  
Development Economic ◽  
Content Type ◽  
Indian Economy ◽  
Long Run ◽  
The Impact

Purpose – The purpose of this paper is to investigate the impact of financial development, economic growth and energy consumption on environment degradation for Indian economy by using the time series data for the period 1971-2011. Design/methodology/approach – The stationary properties of the variables are checked by ADF, DF-GLS, PP and Ng-Perron unit root tests. The long-run relationship is examined by implementing the Autoregressive Distributed Lag bounds testing approach to co-integration and error correction method (ECM) is applied to examine the short-run dynamics. The direction of the causality is checked by VECM framework and variance decomposition is used to predict exogenous shocks of the variables. Findings – The empirical evidence confirms the existence of long-run relationship among the variables. Financial development appears to increase environmental degradation in India. The main contributors to environmental degradation are: economic growth, energy consumption financial development and urbanization. The results also lend support to the existence of environmental Kuznets curves for Indian economy. Research limitations/implications – The present study suggests that environmental degradation can be reduced at the cost of economic growth or energy efficient technologies should be encouraged to enhance the domestic product with the help of financial sector by improving environmental friendly technologies from advanced economies. Originality/value – This paper proposes to make a contribution to the existing literature through examining the relationship between financial development and environmental degradation in Indian economy during 1971-2011 by employing modern econometric techniques.

scholarly journals BANKING SECTOR LIBERALIZATION AND ECONOMIC GROWTH: CASE STUDY OF PAKISTAN

2016 ◽  
Vol 17 (1) ◽  
pp. 125-139 ◽  
Author(s):  
Najia SAQIB
Keyword(s):  
Economic Growth ◽  
Banking Sector ◽  
Time Series Data ◽  
Series Data ◽  
Omitted Variables ◽  
Financial Systems ◽  
Long Run ◽  
Banking Sector Development ◽  
The Impact

Economic theory suggests that sound and efficient financial systems channel capitals to its most productive uses are beneficial for economic growth. Sound and efficient financial systems are especially important for sustaining growth in developing countries. This paper examines the impact of banking sector liberalization on long-term economic growth in Pakistan by using a time series data for the period 1971–2011. The results show that there exist a significant positive long run relationship between banking sector development and economic growth in the country. The sensitivity analysis also shows that the relationship remain positive and significant no matter what combination of the omitted variables are used in the basic model. Thus, our findings support the core idea that banking sector development stimulates long term economic growth in a country.

scholarly journals Comparison of the impact of lending and inflation rates on economic growth in Vietnam and China

2020 ◽  
Vol 15 (4) ◽  
pp. 193-203
Author(s):  
Doan Van Dinh
Keyword(s):  
Economic Growth ◽  
Monetary Policy ◽  
Time Series Data ◽  
Close Correlation ◽  
Least Square ◽  
Series Data ◽  
Lending Rate ◽  
Lending Rates ◽  
The Impact

Inflation and lending rates are two important macroeconomic indicators as they affect economic growth. The correlation between the inflation rate and the lending rate in Vietnam and China is analyzed to determine whether the lending rate causes inflation or not. An ordinary least square model (OLS) and a unit root test are applied to check the correlation and cointegration related to the inflation and lending rates to avoid spurious regression. The research time series data were collected from 1996 to 2017. The correlation of Vietnam’s variables is 56%, the correlation of China’s variables is 55%, which is a close correlation. The empirical cointegration test results for Vietnam and China are suitable for two research models. The relationship between these two indicators influences each other. In the short term, inflation stimulates economic growth through loose monetary policy through the lending rate. However, in the long term, if the money supply increases continuously, inflation will slow economic growth and increase bad debt. The empirical results are to make accurate forecasts and determine monetary policy for micro-managers who set the goal of sustainable economic growth and have a strategy for economic development in the short and long term.

scholarly journals Potential Tax Reforms and Kuwait Economic Growth

2019 ◽  
pp. 42-48
Author(s):  
K. Lawler ◽  
F. Ali Al-Sayegh
Keyword(s):  
Economic Growth ◽  
Time Series Data ◽  
Value Added ◽  
Least Square ◽  
Series Data ◽  
Tax Reforms ◽  
Tax Revenues ◽  
Oil Revenue ◽  
The Impact

The objective of this study is to identify whether tax reforms are viable in Kuwait in order to create more government income from sources other than oil. The study examines the relationship between the changes in tax revenues, changes in oil revenue and changes in GDP in Kuwait using time series data from 1998 to 2015. The Augmented Dickey-Fuller (ADF) is used to check for the existence of a unit root. The cointegration test is applied to test for long term relationships between variables using the General Least Square (GLS) method of estimation. The results of the tests find that the impact of changes in tax revenues on changes in the GDP of Kuwait is insignificant. Therefore, Kuwait’s government could rationally implement tax reforms to have incremental sources of income other than oil revenue. Moreover, it is argued that the government might consider implementing broad based consumption taxes and value added taxes into the tax structure Kuwait, and to invest the revenues from those taxes in productive policies, to induce long term economic growth.

scholarly journals Trade Openness and Economic Growth in Indonesia

2020 ◽  
Vol 10 (2) ◽  
pp. 163-170
Author(s):  
Khoirul Ifa ◽  
Moh. Yahdi
Keyword(s):  
Economic Growth ◽  
International Trade ◽  
Time Series Data ◽  
Trade Openness ◽  
Generalized Method Of Moments ◽  
Series Data ◽  
Test Results ◽  
Rapid Economic Growth ◽  
The Impact

Economic growth and international trade are related to one another. International trade stimulates long-term economic growth. The more trade activities in a country, the more rapid economic growth; this trade is a key component of development in a country, its contribution is felt with the increasing economic growth in several countries. The purpose of this study looks at the impact of trade openness on economic growth in Indonesia in 1986-2017. This research is a quantitative study using time series data from 1986-2017, research data obtained from the world bank, data analysis techniques using the GMM method to see the impact of trade openness on economic growth. The test results using the Generalized Method of Moments analysis method show that all variables significantly influence the dynamics of economic growth in Indonesia. This result is proven by the t-statistic probability value, which shows a smaller value compared to the t-table value. Then the value also has a probability of less than α. It can be concluded that the variables of trade, FDI, inflation, and the number of workers have a significant effect on economic growth in Indonesia.

scholarly journals FDI and long-term economic growth in Egypt

2017 ◽  
Vol 13 (1) ◽  
pp. 65-74
Author(s):  
Saif Alhakimi
Keyword(s):  
Economic Growth ◽  
Time Series ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
Time Series Data ◽  
Government Expenditure ◽  
Wage Structure ◽  
Series Data ◽  
The Impact

This research paper aims to empirically analyze the impact of FDI on the long-term economic growth of Egypt. An empirical model was developed to explain the aggregate output, including total labor force, capital stock, foreign direct investment, government expenditure, and the real exchange rate. Annual time-series data from 1990–2013 were then used to estimate the model. Prior to calculating this estimation, the properties of the time series were diagnosed, and an error-correction model was developed and assessed. The overall results suggest that foreign direct investment makes a positive, yet weak and insignificant, contribution to the long-term economic growth of Egypt. This finding warrants further investigation to explore the possible reasons behind it, such as the degree of spillover that FDI has on economic growth and its impact on employment in areas like job creation, wage structure, research, and development.

scholarly journals The Impact of Manufacturing Industries on Economic Growth in the Kingdom of Saudi Arabia during (1990- 2018): أثر الصناعات التحويلية على النمو الاقتصادي في المملكة العربية السعودية  للفترة (1990- 2018)

2020 ◽  
Vol 4 (3) ◽  
Author(s):  
Reem Saeed Al- Ghamdi, Maha Alandejani
Keyword(s):  
Economic Growth ◽  
Saudi Arabia ◽  
Manufacturing Industries ◽  
Series Data ◽  
Short Term ◽  
Kingdom Of Saudi Arabia ◽  
Unit Root Testing ◽  
Oil Exports ◽  
The Impact

The study examined the effect of the impact of manufacturing industries on the economic growth in the Kingdom of Saudi Arabia، and to analyze the size of manufacturing growth and its contribution to economic growth. This study is based on the descriptive analytical approach to identify the development of manufacturing industries in Saudi Arabia and the size of its impact on the growth of the Saudi economy and also based on the methodology of standard analysis using time series data، and the application of unit root testing and common integration and multiple linear regression by applying an Ordinary Least Square (OLS)، to examine the relationship between the rate of economic growth، the rate of GDP of manufacturing، the rate of oil exports، the rate of industrial loans، and the rate of exports of manufacturing industries. The results indicate to negative impact of manufacturing industries، oil exports and industrial exports on economic growth in the long term، despite their positive impact in the short term and the existence of a direct correlation between the rate of growth of oil exports and economic growth in the short term، and the inverse relationship of industrial loans and industrial exports on economic growth. The study summarized several recommendations، including that decision-makers need to pay attention to manufacturing industries and oil exports taking into account the long- term risks of global oil markets and import prices، and the adoption of more extensive policies with regard to industrial loans and maximize industrial exports to affect economic growth positively.

Corruption, public debt and economic growth – evidence from developing countries

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Carole Ibrahim
Keyword(s):  
Economic Growth ◽  
Developing Countries ◽  
Public Debt ◽  
Economic Effects ◽  
Empirical Literature ◽  
Long Term Effects ◽  
Empirical Examination ◽  
Content Type ◽  
The Impact

Purpose The purpose of this paper is to empirically examine the effect of corruption on public debt and economic growth in 20 developing countries over the period 1996-2018. Design/methodology/approach This study makes use of the autoregressive distributed lag (ARDL) model to detect the long-term relationships, on the one hand, between corruption and public debt and, on the other hand, between corruption and economic growth. Findings The empirical results reveal that corruption increases the debt-to-GDP ratio and that the interactions between corruption and public revenues and between corruption and public spending have a positive influence on public debt in the long run. The estimations also show that high corruption hampers long-term economic growth and increases the negative effect of public debt on economic growth in developing countries. Originality/value While corruption is a prevalent phenomenon in most developing countries, the literature still lacks empirical examination of its economic effects. This study fills this gap with the aim of highlighting that high corruption hinders development in developing nations. This study also examines the impact of the interactions between corruption and components of the fiscal balance on public debt. Moreover, while the existing empirical literature uses regression techniques, this paper uses a panel ARDL approach to detect the long-term effects of corruption.

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