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This study examines the roles of cross-sectional dependence, asymmetric structure and country-to-country policy variations in the inflation-poverty reduction causal nexus in selected sub-Saharan African (SSA) countries from 1981 to 2019.

To account for cross-sectional dependence, heterogeneity and policy variations across countries in the inflation-poverty reduction causal nexus, this study uses robust Hatemi-J data decomposition procedures and a battery of second-generation techniques. These techniques include cross-sectional dependency tests, panel unit root tests, slope homogeneity tests and the Dumitrescu-Hurlin panel Granger non-causality approach.

Unlike existing studies, the panel and country-specific findings exhibit several dimensions of asymmetric causality in the inflation-poverty nexus. Positive inflationary shocks Granger-causes poverty reduction through investment and employment opportunities that benefit the impoverished in SSA. These findings align with country-specific analyses of Botswana, Cameroon, Gabon, Mauritania, South Africa and Togo. Also, a decline in poverty causes inflation to increase in the Congo Republic, Madagascar, Nigeria, Senegal and Togo. All panel and country-specific analyses reveal at least one dimension of asymmetric causality or another.

All stakeholders and policymakers must pay adequate attention to issues of asymmetric structures, nonlinearities and country-to-country policy variations to address country-specific issues and the socioeconomic problems in the probable causal nexus between the high incidence of extreme poverty and double-digit inflation rates in most SSA countries.

Studies on the inflation-poverty nexus are not uncommon in economic literature. Most existing studies focus on inflation’s effect on poverty. Existing studies that examine the inflation-poverty causal relationship covertly assume no asymmetric structure and nonlinearity. Also, the issues of cross-sectional dependence and heterogeneity are unexplored in the causal link in existing studies. All panel studies covertly impose homogeneous policies on countries in the causality. This study relaxes this supposition by allowing policies to vary across countries in the panel framework. Thus, this study makes three-dimensional contributions to increasing understanding of the inflation-poverty nexus.

The current challenges experienced by all nations promote the trade-off between the increase in economic performance and the protected environment. The investigation based on the energy economy has become an irreplaceable topic to determine the correct path for minimizing the trade-off cost. Within this scope, this study has been performed to investigate the causality nexus between the exports indicators (aggregated exports and the ICT exports) and the energy consumption (renewable and nonrenewable energy consumption of the selected five emerging countries. The Dumitrescu–Hurlin panel causality analysis is performed on the annual data between 2000 and 2014. As a consequence of the evidence, it is documented that there are various causality relationships between the exports and the energy consumption indicators in the light of the performed analysis at different lags. However, the role of nonrenewable energy consumption is more active in the economies of the considered countries. According to the evidence, it is recommended for the emerging countries to invest and allocate more funds to renewable energy resources to diminish the role of nonrenewable energy resources in the economy.

The purpose of this paper is to examine the interaction of enforcement and adjudication for general deterrence of drunk-driving. The authors present a triangular feedback model between three domains: police, courts and drunk-driving events. The authors’ deductive approach imposes no structural assumptions beyond the core of general deterrence theory.

Using a largely untapped data set for California’s 58 counties from 1990 to 2010, the authors estimate a series of heterogeneous panel Granger non-causality tests. This empirically based evidence is re-organized per the proposed triangular feedback model to objectively categorize local criminal justice systems as active, responsive or reactive (with respect to drunk-driving).

Our results suggest that state-level analyses obscure useful variations that empirical panel methods can now handle. The authors provide evidence that research based on empirically derived groupings, rather than inductively based preconceptions, is key to understanding enforcement and compliance. The authors provide a less confounded picture of the relationship between drunk-driving enforcement and adjudication.

Our study addresses one offense for a particular state in the USA. It is an exploratory analysis. This analytical and empirical approach is new.

Our approach imposes very few a priori assumptions and requires a minimum of data series to be executed. The method can be broadly applied to a range of topics and observational units.

The authors aim to expand identification of local systems’ effectiveness (or not) and mechanisms of for general deterrence of drunk-driving. The offense is one that can be committed easily and unintentionally; it does not presume anomie. The authors address general communities, not anomalies. Knowing how enforcement and compliance operate is essential to an array of behavioral externalities.

This is a new empirically based approach for analyzing social systems. It is a marriage of new macroeconomic time-series techniques with an old question, most often addressed by microeconomic research. This study uses an underutilized data source to construct a unique panel data set.

This study aims to measure the relationship between demand and exchange rate shocks in the tourism industry.

A panel data set is constructed covering the period between 1995 and 2017, and the data set includes the top 26 countries that host 10 million tourists and above in the world as of 2017. The standard errors of the series are used as an indicator of shocks. First, the cross-sectional dependency, stationarity and the homogeneity of the series are examined; second, a panel cointegration analysis is implemented; third, long-term panel cointegration coefficients are analyzed with Dynamic Common Correlated Effects (DCCE) approach; and, finally, Dumitrescu and Hurlin’s (2012) Granger non-causality test is used to detect the causality.

The preliminary analyses show that the variables are cross-sectional dependent and heterogeneous and are stationary in their first difference; hence, the effects of the shocks are temporary. On the other hand, as a result of the panel cointegration analysis, it is found that both series are cointegrated over the long-term. However, the long-term coefficients estimated with the DCCE approach are found not to be statistically significant. Finally, as a result of the Dumitrescu and Hurlin’s (2012) Granger non-causality test, it is concluded that there is a causality running from exchange rate shocks to demand shocks.

To the best of the authors’ knowledge, the cointegration between the tourism demand shocks and exchange rates shocks has not been investigated before, and therefore, this study is considered to be a pioneering study that will contribute to the literature.

The purpose of this paper is to develop a new framework to test the hypothesis that portfolio model predicts a negative correlation between stock prices and exchange rates in a trivariate transmission channel for foreign portfolio equity investment.

This paper utilizes panel data for eight economies to extend the Dumitrescu and Hurlin (2012) Granger non-causality test of heterogeneous panels to a trivariate model by integrating the Toda and Yamamoto (1995) approach to Granger causality.

The evidence suggests that stock prices Granger-cause exchange rates and portfolio equity flows Granger-cause exchange rates. However, the overall panel evidence casts doubt on the explicit trivariate model of portfolio balance model. The study shows that Indonesia may be the only case where stock prices affect exchange rates through portfolio equity flows.

The proposed test does not account for potential asymmetries or structural shifts associated with the crisis period. To isolate the impact of the Asian Financial crisis, this paper rather splits the sample period into two sub-periods: pre- and post-crises. The sample period and countries are also limited due to the use of the balance of payment statistics.

The study casts doubt on the maintained hypothesis of a trivariate transmission channel, as posited by the portfolio model. Policy makers of an economy may integrate capital market and fiscal policies in order to maintain stable exchange rate.

This paper integrates a portfolio equity inflow variable into a single framework with stock price and exchange rate variables. It extends the Dumitrescu and Hurlin’s (2012) bivariate stationary Granger non-causality test in heterogeneous panels to a trivariate setting in the framework of Toda and Yamamoto (1995).

The COVID-19 outbreak occurred in Wuhan region of China has significantly affected the exports and production of countries. Digitalization and technological developments have increased with the Industry 4.0, and COVID-19 measures accelerated this process. In this study, the impacts of COVID-19 pandemic have been investigated on international trade and production in European countries and Turkey. Accordingly, the cointegration relations between variables were examined with Westerlund panel cointegration test. As a result of the cointegration test, it is determined that there are long-term relationships between variables. The causality relationships between variables are analyzed with the Dumitrescu–Hurlin panel causality test. Causality analyses show that there is a unidirectional causality relationship from COVID-19 cases and deaths to export, while there is a unidirectional causality relationship from COVID-19 cases to production. The empirical findings demonstrate that COVID-19 outbreak has a significant impact on production and export processes in European countries and Turkey.

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 paper is to find out the relationship between energy consumption, economic growth and CO₂ emissions for the G7 countries over the period 1971–2014. The second intent of the paper is to make a comparison whether it is renewable energy consumption, non-renewable energy consumption, or both that determine sustainable economic growth in G7 countries.

The authors testify the relationship among energy consumption, economic growth and CO₂ emissions using numerous econometric techniques. The authors have applied pooled mean group autoregressive distribution model (ARDL) for long-run and short-run relationships for individual countries. Finally, the authors have applied Granger causality testing based on Dumitrescu and Hurlin (2012) and Emirmahmutoglu and Kose’s (2011) approach in order to check the causal relationship between energy consumption and economic growth, CO₂ emission and economic growth and vice versa.

However, energy usage is a greater concern due to the increase in imported energy prices. With this preposition, new thinking needs to be carried out for energy usage and sustainable economic growth. The authors consider cross-sectional reliance and cross-country heterogeneity for seven developed countries. The tests utilized in this investigation include the bootstrap causality approach of Dumitrescu and Hurlin (2012) and LA–VAR approach of Toda and Yamamoto (1995) that permits testing the causality for every individual panel individuals independently. However, not very many empirical works bring these two separate streams of writing together to analyze the causal connections between energy consumption, economic growth and CO₂ emission for G7 countries.

However, energy usage is a greater concern due to the increase in imported energy prices. Meanwhile, the exhaustive use of fossil fuels increases emission level which leads to climate change, global warming, reduction in agriculture productivity and danger to human life. With this preposition, new thinking needs to be carried out for energy usage and sustainable economic growth. There are limited number of studies addressing energy consumption, economic growth and CO₂ emission relationship. This study employs different methodology to find out the relationship among the variables.

The purpose of this paper is to examine the causal relationship between inward foreign direct investment (FDI) and economic growth in Southern African Development Community (SADC) countries over the period 1980-2012. It also investigates whether the causal relationship between FDI inflows and economic growth is dependent on the level of income.

In order to assess whether the causal relationship between FDI inflows and economic growth is dependent on the level of income, the study divided the SADC countries into two groups, namely, the middle-income countries and the low-income countries. The study used the recent panel-data analysis methods to examine this linkage. The Granger causality test for the middle-income countries was conducted within a vector-error correction mechanism framework; while that of the low-income countries was conducted within a vector autoregressions framework.

The results for the middle-income countries’ panel show that there is a uni-directional causal flow from GDP to FDI, and not vice versa. However, for the low-income countries’ panel, there was no evidence of causality in either direction. The study concludes that the FDI-led growth hypothesis does not apply to SADC countries.

Methodology applied in this study is a bivariate framework which is likely to suffer from the omission of variable bias (Odhiambo, 2008, 2011). Second, the Granger causality analysis employed in this only investigates the direction of causality and whether each variable can be used to explain another, but does not directly test for the mechanisms through which FDI leads to economic growth and economic growth leads to FDI.

Future studies may include a third variable such as domestic savings, exports, or financial development in a trivariate or multivariate panel causality model. A more complete analysis which seeks to explain the channels through which FDI impacts growth is suggested for future studies. Lastly, sector level analysis will help policy makers draft effective industrial policies, which can guide allocation of incentives.

The results of this study support the Growth-led FDI hypothesis, but not the FDI-led growth hypothesis. In other words, it is economic growth that drives FDI inflows into the SADC region and into Southern Africa, and not vice versa. This implies that the recent high economic growth rates that have been recorded in some of the SADC countries, especially the middle-income countries, have led to a massive inflow of FDI into this region.

At the regional level, SADC as a regional bloc has been actively pursuing policies and strategies aimed at attracting FDI into the region. Despite the important role of FDI in economic development, and the increase in FDI inflows into SADC countries in particular, there is a significant dearth of literature on the causal relationship between FDI and economic growth. The study used the recent panel-data analysis methods to examine the causal relationship between FDI and economic growth in SADC countries.