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Over the past two decades, scholarly attention has focused mainly on a direct and inverse relationship between corporate environmental responsibility (CER) and corporate financial performance (CFP). This study aims to explore the bidirectional causality hypothesis, as good environmental results can lead to good financial results, which makes it possible to invest more resources in projects that improve environmental performance.

The authors test the bidirectional causality between CER and CFP on a sample of listed Italian manufacturing firms over the 2005-2014 period. The authors use a fixed effect panel data regression and check the robustness of the results with alternative econometric techniques.

Although the findings do not support bidirectional hypothesis, they establish direction/causality from CFP to CER. As a result, environmental responsibility is a consequence of prior financial performance, which supports the slack resources hypothesis.

Given that companies’ environmental commitment is dictated by economic evaluations or by assessing the availability of resources to invest, it seems that the spread of environmentally responsible behaviours might be supported by different external pressures.

The paper provides further insights on sustainability management literature by establishing a bidirectional relationship between firm performance and environmental responsibility.

Housing market is predominantly driven by supply and demand, and the measurement of housing supply plays a crucial role in understanding market dynamics. One such measure is the number of building permits (BPs) issued. Despite the importance of BPs as an economic indicator, direct links have yet to be drawn between BP and housing value index (HVI). The purpose of this paper is to establish links between HVI and BP.

Trials were conducted using data at the national, state and metropolitan statistical area (MSA) levels. For each trial, the Granger causality test was used first to identify causal relationships between HVI and BP. Subsequently, the vector autoregression model was implemented in an attempt to observe impulse–response relationships and to create a forecast for HVI.

Bidirectional causal relationships were observed between HVI and BP at the national, state and MSA levels. The number of issued BPs proves to be an indicator for HVI. Impulse response functions indicate that HVI responds negatively to an increase in BP in the short term of 4–7 months but positively to an increase in BP with a lag of 10–12 months.

To the best of the authors’ knowledge, this paper is the first in the body of knowledge that establishes the number of issued BPs as an indicator for housing value. The results drawn using impulse–response function are also novel and had not been observed in previous studies.

The purpose of this paper was to survey the existing literature on the causal relationship between bank-based financial development and economic growth, highlighting the theoretical and empirical evidence from recent work. Although some previous studies have attempted to conduct a survey of the existing research on the finance-growth nexus, the majority of these studies have failed to distinguish between bank-based and market-based financial developments. To our knowledge, this may be the first study of its kind to survey the existing research on the causal relationship between bank-based financial development and economic growth – in both developed and developing countries.

Overall, our study shows that most of the literature reviewed in this paper either supports bidirectional causality between bank-based financial development and economic growth or reinforces the conventional supply-leading response phenomenon. Notwithstanding this outcome, the study also finds the literature in favour of a demand-following response to be increasing – in both number and substance – especially in recent years.

The paper, therefore, concludes that the causal relationship between financial development and economic growth is not clear-cut and that the notion that financial development automatically leads to economic growth is merely based on prima facie or superficial evidence.

Although some previous studies have attempted to conduct a survey of the existing research on the finance-growth nexus, the majority of these studies have failed to distinguish between bank-based and market-based financial developments. To our knowledge, this may be the first study of its kind to survey the existing research on the causal relationship between bank-based financial development and economic growth – in both developed and developing countries.

The Association of Southeast Asian Nations (ASEAN) has evolved into ASEAN Economic Community (AEC), which aims to pursue a single market and production base to transform ASEAN into a dynamic, competitive and global region. ASEAN is inherently heterogeneous that potentially could promote further economic integration, fundamentally, through the interactions between intra-regional outward foreign direct investment (OFDI), export trade and economic growth. Hence, this paper attempts to explore the causal relationship between intra-ASEAN OFDI, intra-ASEAN exports and economic growth of ASEAN-10 countries.

This paper attempts to explore the causal relationship between intra-ASEAN OFDI, intra-ASEAN exports and economic growth of ASEAN-10 countries, using regional panel data based on Dumitrescu and Hurlin (2012) non-causality analysis, which allows us to take into account of the heterogeneity in terms of causal relationships.

The empirical study shows bidirectional causality between intra-ASEAN export and intra-ASEAN OFDI, a bidirectional causality between intra-ASEAN export trade and intra-ASEAN economic growth and a unidirectional causality running from the real GDP of ASEAN-10 countries to intra-ASEAN OFDI.

The findings have implications for the extent of intra-ASEAN production fragmentation, policy formulations for furthering intra-regional OFDI, and trade to achieve the ASEAN integration agenda.

The main contribution of the current study is to use the panel causality analysis for an emerging dynamic region, specifically, the AEC. As far as we know, this is the first study ascertaining whether there is a causality relationship between intra-ASEAN OFDI, intra-ASEAN export trade and economic growth of ASEAN-10, which is a longstanding objective of ASEAN integration agenda.

The purpose of this study is to investigate the Granger causal link between bank lending and housing prices.

Several econometric methods, including Granger causality tests based on a vector error correction model, were applied to analyse monthly time series data in the Swedish context. The data cover bank lending, apartment prices, villa prices, mortgage rates and the consumer price index from September 2005 to October 2013.

The results indicate that bank lending and housing prices are cointegrated. According to Granger causality tests, bidirectional relationships exist between bank lending and each of apartment and villa prices, confirming the financial accelerator mechanism. However, earlier shocks arising from housing prices themselves account for the greatest variation in future prices.

To the authors’ knowledge, this study represents the first analysis of the causal link between bank lending and the housing market in terms of apartment and villa prices in the Swedish context.

The purpose of this study is to investigate the Granger causal link between the stock market index and housing prices in terms of apartment and villa prices.

Monthly data from September 2005 to October 2013 on apartment prices, villa prices, the stock market index, mortgage rates and the consumer price index were used. Statistical methods were applied to explore the long-run co-integration and Granger causal link between the stock market index and apartment and villa prices in Sweden.

The results indicate that the stock market index and housing prices are co-integrated and that a long-run equilibrium relationship exists between them. According to the Granger causality tests, bidirectional relationships exist between the stock market index and apartment and villa prices, respectively, supporting the wealth and credit-price effects. Moreover, variations in apartment and villa prices are primarily caused by endogenous shocks.

To the authors’ best knowledge, this study represents a first analysis of the causal nexus between the stock market and the housing market in terms of apartment and villa prices in the Swedish context using a vector error-correction model to analyze monthly data.

The purpose of the paper is to empirically examine the relationship between energy consumption and economic growth for a panel of five South Asian economies, namely, India, Pakistan, Bangladesh, Sri Lanka and Nepal over the period from 1971 to 2010 within a multivariate framework.

The study uses Pedroni cointegration and Granger causality test based on panel vector error correction model to examine long-run equilibrium relationship and direction of causation in the short and long run between energy consumption and economic growth using energy inclusive Cobb–Douglas production function for a panel of five South Asia countries, namely India, Pakistan, Bangladesh, Sri Lanka and Nepal.

Pedroni’s panel cointegration test indicates the long-run equilibrium relationship between economic growth per capita, energy consumption per capita and real gross fixed capital formation per capita for panel. Further, 1 per cent increase in energy consumption per capita increases the gross domestic product (GDP) per capita by 0.8424 per cent for the panel. Causality results suggest bidirectional causality between energy consumption per capita, gross fixed capital formation per capita and GDP per capita in the long run and unidirectional causality running from energy consumption per capita and gross fixed capital formation per capita to GDP per capita in the short run.

These South Asian countries should implement an expansionary energy policies through improving the energy infrastructure, energy efficiency measures and exploiting massive renewables’ availability for low-cost, affordable clean energy access for all, especially in the yet unserved rural and remote areas for further stimulating economic growth.

Implementing energy efficiency measures and massive renewables development (wind, solar and hydropower) may help the affordable and clean energy access and reducing fossils fuel dependence and its associated greenhouse emissions in South Asia.

The purpose of this paper is to investigate dynamics of causal interactions and financial risk contagion among BRICS stock markets under rare events.

Two methods are adopted: The new causal inference technique, namely, the Liang causality analysis based on information flow theory and the dynamic causal index (DCI) are used to measure the financial risk contagion.

The causal relationships among the BRICS stock markets estimated by the Liang causality analysis are significantly stronger in the mid-periods of rare events than in the pre- and post-periods. Moreover, different rare events have heterogeneous effects on the causal relationships. Notably, under rare events, there is almost no significant Liang's causality between the Chinese and other four stock markets, except for a few moments, indicating that the former can provide a relatively safe haven within the BRICS. According to the DCIs, the causal linkages have significantly increased during rare events, implying that their connectivity becomes stronger under extreme conditions.

The obtained results not only provide important implications for investors to reasonably allocate regional financial assets, but also yield some suggestions for policymakers and financial regulators in effective supervision, especially in extreme environments.

This paper uses the Liang causality analysis to construct the causal networks among BRICS stock indices and characterize their causal linkages. Furthermore, the DCI derived from the causal networks is applied to measure the financial risk contagion of the BRICS countries under three rare events.

The purpose of this study is to find the causal relationship among energy consumption (renewable energy and non-renewable energy), gross domestic product (GDP) growth and carbon dioxide (CO₂) emission for Brazil, Russia, India, China and South Africa for the period of 1990-2017.

The study uses bootstrap Dumitrescu and Hurlin panel causality test, which accepts heterogeneity and dependency in cross-sectional units across emerging countries.

The results find unidirectional causality from GDP to CO₂ for India, China, Brazil, South Africa and no causality for Russia. The causality results from renewable energy consumption to GDP show that there is evidence of feedback hypothesis for China and Brazil, growth hypothesis for Russia, conservation hypothesis for South Africa and neutrality hypothesis for India. However, the results accept growth hypothesis for India, China, Russia, Brazil and neutrality hypothesis for South Africa. In the case of renewable energy and non-renewable energy consumption to CO₂ emission, the results find convergence in India, Russia and South Africa and divergence in China and Brazil.

It is the first study that investigates the part of balanced economic growth, instead of simply financial development in those economies. Numerous studies have used diverse factors such as economic development, renewable energy, non-renewable energy and CO₂ emission; however, the examination has used total GDP growth rate, energy consumption and CO₂ emissions.

The purpose of this paper is to examine the relationship between import and economic growth for 62 countries.

The paper applies autoregressive distributed lag model (ARDL) for long‐run relation and Granger causality test, in order to detect the direction of short‐run and long‐run causal relationship.

The results indicate that the long‐run relationship exists in the USA, the UK, Japan, Iceland, Canada, Italy, Algeria, Brazil, Chile, Colombia, Cuba, Gabon, Malaysia, Mexico, Peru, South Africa, Uruguay, Bolivia, Cameroon, Cote d'Ivoire, Ecuador, Egypt, El Salvador, Guatemala, Honduras, India, Lesotho, Nicaragua, Papua New Guinea, Thailand, Bangladesh, Benin, Chad, Congo, Gambia, Kenya, Madagascar, Togo, Zambia and Zimbabwe when economic growth is dependent variable. This result confirms the importance of import in the process of sustainable economic growth of these countries. In alternative combination when import is dependent variable, the long‐run relationship is found in the USA, the UK, Japan, Finland, Iceland, Canada, Italy, Brazil, Cuba, Dominican Republic, Iran, Malaysia, Mexico, Peru, South Africa, Bolivia, Cameroon, Guatemala, Honduras, India, Indonesia, Lesotho, Morocco, Nicaragua, Pakistan, Philippines, Senegal, Sudan, Swaziland, Thailand, Tunisia, Bangladesh, Benin, Burkina Faso, Chad, Congo, Gambia, Kenya, Madagascar, Malawi, Mali, Mauritania, Togo and Zambia. These findings confirm the importance of source of economic growth for import. On the other hand, the results of Granger causality test indicate mixed results but the importance is that in the case of higher income countries, there is unidirectional long‐run causality found from import to economic growth (except the USA, Iceland and Italy), and bidirectional long‐run causal relationship exists between import and economic growth in low income countries except Madagascar and Mauritania.

This paper provides the largest sample, including 62 countries, examining the relationship between import and economic growth, from 1971 to 2009.