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Book part
Publication date: 21 November 2014

Cheng Hsiao

This paper provides a selective survey of the panel macroeconometric techniques that focus on controlling the impact of “unobserved heterogeneity” across individuals and over time…

Abstract

This paper provides a selective survey of the panel macroeconometric techniques that focus on controlling the impact of “unobserved heterogeneity” across individuals and over time to obtain valid inference for “structures” that are common across individuals and over time. We consider issues of (i) estimating vector autoregressive models; (ii) testing of unit root or cointegration; (iii) statistical inference for dynamic simultaneous equations models; (iv) policy evaluation; and (v) aggregation and prediction.

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Essays in Honor of Peter C. B. Phillips
Type: Book
ISBN: 978-1-78441-183-1

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Book part
Publication date: 23 May 2022

Omowumi Monisola Ajeigbe and Olumide Sunday Adesina

The resistance of the energy sector in recent time has been tried by COVID-19 as the occurrence has added to the dampening down demand for crude oil which has resulted in…

Abstract

The resistance of the energy sector in recent time has been tried by COVID-19 as the occurrence has added to the dampening down demand for crude oil which has resulted in volatility in prices and dwindling production of crude oil at the global crude oil market. Dwindling demand and price decline can also be perceived as a trend in the electricity sector, the electricity price (ELECTP) and consumption. The consequences of individual policy response by countries in relation to the socio-economic impact of COVID-19 is yet to be known, and recent studies conducted in the continent are yet to document the impact of the pandemic on the oil-producing African countries. It is in the light of this that this study determined the effect of socio-economic shocks activated through the COVID-19 pandemic on the energy sector performance and economic development of Africa. Monthly data were sourced from the United States Energy Information Administration, COVID-19 geographic distribution worldwide, World Development Indicator and Trading Economics from 2019 (m12) to 2020 (m10). Seventeen oil-producing African countries were selected across the region based on data availability. The structural panel vector auto regression (SPVAR) analytical technique was used in estimating COVID-19 pandemic and socio-economic shocks on the energy sector performance proxied by oil production (OILP), ELECTP and economic development proxied by gross domestic product per capita (GDPPC) of the countries. Findings revealed that the COVID-19 pandemic transmits a negative shock to OILP and GDPPC while a positive shock is transmitted to ELECTP. The socio-economic variables also transmitted both the positive and negative shocks to OILP, ELECTP and GDPPC. Therefore, the study recommended that policies should be directed towards putting in place a shock-absorbing mechanism so as to cushion the effect of the identified shocks on the performance of the energy sector and the economic development of the countries.

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COVID-19 in the African Continent
Type: Book
ISBN: 978-1-80117-687-3

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Article
Publication date: 9 January 2017

Tajul Ariffin Masron

Foreign direct investment (FDI) inflows into any country, especially ASEAN countries, is affected by any improvement in the institutional quality (IQ) of competitors such as…

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Abstract

Purpose

Foreign direct investment (FDI) inflows into any country, especially ASEAN countries, is affected by any improvement in the institutional quality (IQ) of competitors such as China. As generally investors make decisions by comparing two countries’ IQ, the ratio of two countries’ IQ matters more than a single country’s IQ. The purpose of this paper is to re-examine the role of IQ on FDI inflows in ASEAN countries for the period 1996-2013.

Design/methodology/approach

With limited information on IQ, this study pools eight ASEAN countries as the sample for analysis from 1996 until 2013. A panel dynamic approach – namely, dynamic ordinary least square and fully modified ordinary least square – is utilized.

Findings

This study confirmed that relative IQ significantly affects FDI inflows into ASEAN countries. The low effect is more reflective of the small portion of world FDI inflows into the ASEAN region.

Research limitations/implications

This study observes the crucial relationship between IQ and FDI – that the relative effectiveness of IQ in attracting FDI inflows depends heavily on the changes in both countries’ IQ. Hence, the effort of ASEAN countries to improve IQ and use it as a means to lure FDI inflows should go beyond a mere improvement. Focus should be on significant improvement of IQ so that multinational corporations will comfortably remain or inject new FDI into the country.

Practical implications

Every ASEAN country should double their efforts toward improving their IQ in order to attract future FDI.

Originality/value

Several studies have confirmed the role of IQ on FDI inflows. However, the majority of these studies have investigated the effect of IQ exclusively for a specific country even though some of them have used a panel of several countries’ data. On the other hand, investors normally evaluate their decision on whether or not to invest based on the relative terms, comparing several potential locations of investment at once. This study can be considered the first to explore the potential effect of IQ after taking into account the possibility of each ASEAN country’s IQ being easily offset by changes in the IQ of China.

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Journal of Economic Studies, vol. 44 no. 1
Type: Research Article
ISSN: 0144-3585

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Book part
Publication date: 17 June 2024

Nassir Ul Haq Wani

Export product concentration is common in developing nations, where raw materials and semi-manufactured commodities face rigid demand in international markets. This leads to the…

Abstract

Export product concentration is common in developing nations, where raw materials and semi-manufactured commodities face rigid demand in international markets. This leads to the monopolisation of exports, particularly when targeting the developed world. Association of Southeast Asian Nations (ASEAN) and South Asian Association for Regional Cooperation (SAARC) nations have prioritised diversification to boost exports and per capita income, globalising their economies. The normalised Hirschman index is employed to analyse the determinants influencing the diversification of exports in ASEAN and SAARC countries from 2018 to 2021. Except for the fuel intensity variable, the results show that structural transformation, competitive advantages, industrial sector expansion, institutional capability, local investment development, financial stability and overall economic performance positively promote export diversification intensity. The key result is that institutional strength helps nations rapidly diversify their exports, highlighting the importance of structural transformation in boosting exports and globalising economies.

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Policy Solutions for Economic Growth in a Developing Country
Type: Book
ISBN: 978-1-83753-431-9

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Book part
Publication date: 8 June 2021

Nilendu Chatterjee and Dipak Kundu

The presence of economic power of BRICS nations could be felt from the late of nineteenth and beginning of twentieth century and during this period inflow of FDI also began to go…

Abstract

The presence of economic power of BRICS nations could be felt from the late of nineteenth and beginning of twentieth century and during this period inflow of FDI also began to go up and spread across all the sectors. FDI has not only looked to capture the huge market of these economies, but while doing so, it has helped these nations in their economics progress. Our main contribution in this paper consists of analyzing both short-run and long-run interactions between status of knowledge and FDI in the form of inflow of FDI and proportion of GDP used for R&D activities accounting for possible development of knowledge in BRICS nations. For this purpose, our work is based on a sample of these five nations during the period 2006–2017. By the help of panel data analysis and having performed all the necessary tests, we have introduced both dynamic OLS and fully modified OLS to get the efficient long-run impact of FDI on knowledge. Our empirical results support long-run and short-run causality running from FDI to knowledge in all BRICS nations. Our policy recommendation includes encouragement of more FDI in development of knowledge-related activities as well as increase in proportion of GDP spent on R&D in BRICS nations.

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Comparative Advantage in the Knowledge Economy
Type: Book
ISBN: 978-1-80071-040-5

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Book part
Publication date: 13 February 2001

Badi H. Baltagi and Chihwa Kao

This chapter provides an overview of topics in nonstationary panels: panel unit root tests, panel cointegration tests, and estimation of panel cointegration models. In addition it…

Abstract

This chapter provides an overview of topics in nonstationary panels: panel unit root tests, panel cointegration tests, and estimation of panel cointegration models. In addition it surveys recent developments in dynamic panel data models.

Details

Nonstationary Panels, Panel Cointegration, and Dynamic Panels
Type: Book
ISBN: 978-1-84950-065-4

Article
Publication date: 28 January 2014

Olayeni Olaolu Richard and Aviral Kumar Tiwari

The present study aims to analyse the sustainability of the trade deficits in the Association of Southeast Asian Nations (ASEAN)-5 countries using panel framework during the…

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Abstract

Purpose

The present study aims to analyse the sustainability of the trade deficits in the Association of Southeast Asian Nations (ASEAN)-5 countries using panel framework during the period from 1965 to 2011.

Design/methodology/approach

The paper applied a battery of first- and second-generation panel unit root tests and Pedroni's, Kao and Chiang's, Westerlund, and Di Iorio and Fachin cointegration tests to achieve the objective.

Findings

The paper found the evidence of sustainable trade deficit in ASEAN-5 countries while utilizing panel unit root tests as well as panel cointegration tests.

Research limitations/implications

The findings have important macroeconomic policies implication for ASEAN-5 countries that these policies had been effective in leading exports and imports to long-run steady-state equilibrium relationship among the ASEAN-5 countries.

Originality/value

The main contribution of the paper is to show that the macroeconomic policies of ASEAN-5 countries had been effective in leading exports and imports to long-run steady-state equilibrium relationship. To the authors' best knowledge, in this area, this is the first study in the panel framework for ASEAN countries.

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Journal of Chinese Economic and Foreign Trade Studies, vol. 7 no. 1
Type: Research Article
ISSN: 1754-4408

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Article
Publication date: 11 November 2020

Faheem Ur Rehman and Abul Ala Noman

Infrastructure deficiency in Southeast Asian countries is ever growing and touched to a level where it harms the local economy as well as the international sector of the country…

Abstract

Purpose

Infrastructure deficiency in Southeast Asian countries is ever growing and touched to a level where it harms the local economy as well as the international sector of the country. The gap between demand and supply for infrastructure is constantly on the upswing. The purpose of this study to investigate the effect of infrastructure on exports and foreign direct investment (FDI) inflow in selected Southeast Asian economies.

Design/methodology/approach

This study employs the pooled mean group (PMG) technique to velaborate that how the infrastructure affects export and FDI in the short run and long run during 1990–2018. For cointegration, Pedroni and Kao tests are used. Dynamic ordinary least square (DOLS) and the fully modified least squares (FMOLSs) estimators are employed for robustness check.

Findings

The findings support that aggregate and sub-indices of infrastructure significantly promote the export and FDI inflow in the long run. Also infrastructure, export and FDI inflow are cointegrated in the long run. FMOLS and DOLS found the most robust results.

Originality/value

Infrastructure development in determining trade and FDI has established a significant deal of attention in the modern era where a plethora of research studies encourage the opinion that better infrastructure attracts FDI and enhances export. However, this study uses a global infrastructure index, which comprises the sub-indices like transport, telecommunication, energy and financial sector, which gives us a clear picture regarding how Southeast Asia can catch up FDI and export benefits through infrastructure.

Details

Journal of Economic Studies, vol. 48 no. 7
Type: Research Article
ISSN: 0144-3585

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Article
Publication date: 6 March 2017

Madhu Sehrawat and A.K. Giri

The purpose of this paper is to investigate the relationship between financial development indicators and human capital for Asian countries using the annual data from 1984-2013.

Abstract

Purpose

The purpose of this paper is to investigate the relationship between financial development indicators and human capital for Asian countries using the annual data from 1984-2013.

Design/methodology/approach

The stationarity of the variables are checked by Levin-Lin-Chu, Im-Pesaran-Shin, Fisher-type augmented Dickey-Fuller and Philips-Perron panel unit-root tests. The Pedroni’s and Kao’s panel co-integration approaches are employed to examine the long-run relationship among the variables. To estimate the coefficients of co-integrating vectors, both panel dynamic ordinary least squares (PDOLS) and fully modified ordinary least squares (FMOLS) techniques are used. The short-term and long-run causality is examined by panel granger causality.

Findings

The Pedroni’s and Kao’s co-integration approaches support the existence of the long-run relationship among the indicators of financial development, economic growth and human capital. The PDOLS and FMOLS estimators revealed that both financial development indicators and economic growth variable act as an important driver for the increase in human capital. The results of panel granger causality indicate that causality runs from indicators of financial development, economic growth and public spending on education to human capital.

Originality/value

There is hardly any study that examine the impact of financial development indicators and economic growth on human capital in Asian economies, therefore the present study fill the research gap in the literature.

Details

International Journal of Social Economics, vol. 44 no. 3
Type: Research Article
ISSN: 0306-8293

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Article
Publication date: 1 November 1997

Chiang Kao, Liang‐Hsuan Chen, Tai‐Yue Wang and Hong‐Tau Lee

Discusses the external supply for industries of particular skill groups from academic institutions and illustrates this with a case of industrial management. Essentially, students…

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Abstract

Discusses the external supply for industries of particular skill groups from academic institutions and illustrates this with a case of industrial management. Essentially, students graduating from academic institutions constitute the major portion of the labour market, and the required courses taught in schools represent the training of students. Takes into consideration three education levels ‐ junior college, college, and graduate school ‐ and classifies the training into six categories: basic knowledge, production, finance, marketing, human resources, and information. Suggests that the discrepancies between the quantities demanded by industries and supplied from schools, and the training expected by industries and received from schools provide useful information for both government and industries when making appropriate decisions.

Details

Career Development International, vol. 2 no. 6
Type: Research Article
ISSN: 1362-0436

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1 – 10 of 364