Search results

1 – 10 of over 2000
Article
Publication date: 6 October 2021

Olufemi Adewale Aluko, Muazu Ibrahim and Xuan Vinh Vo

In this study, the authors examine how economic freedom mediates the impact of foreign direct investment (FDI) on economic growth in Africa.

Abstract

Purpose

In this study, the authors examine how economic freedom mediates the impact of foreign direct investment (FDI) on economic growth in Africa.

Design/methodology/approach

By using data from 41 countries over the period 2000–2017, the authors invoke Seo and Shin's (2016) sample splitting approach while relying on the recently developed Seo et al.'s (2019) computationally robust bootstrap algorithm to achieve the purpose of this study.

Findings

The authors find evidence of economic freedom threshold that bifurcates the link between FDI and economic growth in Africa. More precisely, FDI does not improve overall economic growth for African countries whose economic freedom index is below the estimated threshold while significantly spurring growth for African countries with economic freedom above this threshold.

Practical implications

African countries need to strive towards improving their level of economic freedom through the strengthening of rule of law, reducing government size, promoting regulatory efficiency and further opening of the goods and capital markets.

Originality/value

The association between FDI and economic growth has been well documented. While the positive theoretical postulations are almost conclusive, empirical literature on the precise effect of FDI remains contentious and far from being settled. What is missing in the existing literature in Africa is whether countries' level of economic freedom mediates how FDI explains the variations in economic growth across African countries. The authors fill this research gap.

Details

International Journal of Emerging Markets, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1746-8809

Keywords

Article
Publication date: 21 February 2020

Shruti Shastri, Geetilaxmi Mohapatra and A.K. Giri

The purpose of this paper is to examine the nexus among economic growth, nonrenewable energy consumption and renewable energy consumption in India over the period 1971-2017.

Abstract

Purpose

The purpose of this paper is to examine the nexus among economic growth, nonrenewable energy consumption and renewable energy consumption in India over the period 1971-2017.

Design/methodology/approach

This study uses nonlinear autoregressive distributed lags model and asymmetric causality test to explore nonlinearities in the dynamic interaction among the variables.

Findings

The findings indicate that the impact of nonrenewable energy consumption and renewable energy consumption on the economic growth is asymmetric in both long run and short run. In long run, a positive shock in nonrenewable energy consumption and renewable energy consumption exerts a positive impact on growth. However, the negative shocks in nonrenewable energy consumption produce larger negative effects on the growth. The results of nonlinear causality test indicate a unidirectional causality from nonrenewable energy consumption and renewable energy consumption to economic growth and thus support “growth hypothesis” in context of India.

Practical implications

The findings imply that policy measures to discourage nonrenewable energy consumption may produce deflationary effects on economic growth in India. Further, the findings demonstrate the potential role of renewable energy consumption in promoting economic growth.

Originality/value

To the best of the authors’ knowledge, this study is the first attempt to explore nonlinearities in the relationship between economic growth and the components of energy consumption in terms of renewable and nonrenewable energy consumption.

Details

International Journal of Energy Sector Management, vol. 14 no. 4
Type: Research Article
ISSN: 1750-6220

Keywords

Article
Publication date: 3 March 2021

Sidi Mohammed Chekouri, Abderrahim Chibi and Mohamed Benbouziane

The world is nowadays facing major environmental damage and climate change everywhere. Carbon dioxide emissions are major causes of such change. It is in this respect that…

175

Abstract

Purpose

The world is nowadays facing major environmental damage and climate change everywhere. Carbon dioxide emissions are major causes of such change. It is in this respect that the current study provides a fresh insight into the dynamic nexus between energy consumption (EC), economic growth (EG) and CO2 emissions in Algeria, as it is considered as one of the top CO2 emitters in Africa.

Design/methodology/approach

The authors use the wavelet approaches and Breitung and Candelon (2006) causality test to gauge the association between EC, EG and CO2 emissions over the period 1971–2018. Specifically, this study implements the wavelet power spectrum (WPS) to identify the power and variability of each variable at different time scales. The wavelet coherence, phase differences and partial wavelet coherence are also used to assess the co-movement and lead lag relationship between economic growth, energy consumption and CO2 emissions over different time scale. Finally, Breitung and Candelon (2006) causality test is used to find the causality among variables.

Findings

The wavelet power spectrum results indicate that economic growth, energy consumption and CO2 emissions share common strong variance in the medium and long run. Furthermore, the wavelet coherence results suggest that there is a significant co-movement between EG and CO2 emissions, and EG is the leading variable for CO2 emissions and EC. The results also unveil that both EG and EC cause CO2 emissions both in short and long run. The results suggest that Algeria should take suitable measures towards the promotion of renewable energy sources.

Originality/value

The present empirical study filled the literature gap of applying the wavelet approach and frequency domain spectral causality test to examine this relevant issue for Algeria.

Details

World Journal of Science, Technology and Sustainable Development, vol. 18 no. 2
Type: Research Article
ISSN: 2042-5945

Keywords

Book part
Publication date: 16 December 2009

Riad Attar

The current study is an extension of the PF model research program that began after the Great Depression in the early 1930s. The purpose of the study is to introduce…

Abstract

The current study is an extension of the PF model research program that began after the Great Depression in the early 1930s. The purpose of the study is to introduce political dimensions to the PF defense-growth model and to assess the impact of political and conflict variables on EG. The study theorizes that excluding political factors from the PF defense-growth model hampers any realistic explanation of the problems of EG; that the influences of economic and military variables and their externalities effects vary across different political contexts; that political factors are at least as important as economic factors in determining the outcome of EG; that intrastate and interstate conflicts have differential effects on EG (both types of conflicts have negative effects on EG; however, intrastate conflicts have more damaging effects on growth than do interstate conflicts); and that the impact of conflicts on EG differs across regions.

Details

Arms and Conflict in the Middle East
Type: Book
ISBN: 978-1-84950-662-5

Article
Publication date: 11 July 2022

Md. Saiful Islam and Al Jamal Mustafa Shindaini

This study examines the impact of institutional quality (INQ) and human capital creation (HCC) on economic growth (EG) linkage in Bangladesh using an ARDL approach.

Abstract

Purpose

This study examines the impact of institutional quality (INQ) and human capital creation (HCC) on economic growth (EG) linkage in Bangladesh using an ARDL approach.

Design/methodology/approach

This study uses time-series annual data over the period 1990–2019. It formulates an INQ index based on international country risk guide (ICRG) data, employs public education outlay and expenditure on health data each as a portion of real gross domestic product (GDP) to measure HCC, while an increase in real GDP is used as a proxy for EG. It employs the ARDL technique and Toda–Yamamoto (T-Y) causality check to realize the study.

Findings

The ARDL analysis divulges that the variables have a long-run association; INQ affects long-run EG positively; expenditure on health stimulates EG rate in the long run, but does not impact the latter in the short-run; whilst government spending on education impacts long-term EG rate negatively but positively in the short-term. The T-Y causality test results reveal a feedback relationship between INQ and EG, and one-way causation from health expenditure to EG rate, and education outlay to EG rate and authenticate the ARDL estimation results.

Originality/value

The study is original. The novelty of the study is to employ an INQ index using the ICRG data on 12 different components which are converted into a single index through principal component analysis.

Peer review

The peer review history for this article is available at: https://publons.com/publon/10.1108/IJSE-12-2021-0732

Details

International Journal of Social Economics, vol. 49 no. 12
Type: Research Article
ISSN: 0306-8293

Keywords

Article
Publication date: 14 May 2018

Mohammad Ashraful Ferdous Chowdhury, Chowdhury Shahed Akbar and Mohammad Shoyeb

The purpose of this paper is to examine the linkage between Islamic financing principles and economic growth (EG) by taking into consideration two Islamic Financing…

Abstract

Purpose

The purpose of this paper is to examine the linkage between Islamic financing principles and economic growth (EG) by taking into consideration two Islamic Financing Principles: Risk Sharing and non-risk sharing separately.

Design/methodology/approach

The data for this study are obtained from the annual reports of all Islamic banks from Bangladesh using Bank scope database and annual report for the period 1984-2014. The research uses an Autoregressive Distributive Lags (ARDL) approach. For robustness, this study also employs a continuous wavelet transform approach.

Findings

The empirical findings reveal that the risk sharing instruments are positively related to the EG of the country. On the other hand, non-risk sharing instruments are negatively related to the EG of the country.

Research limitations/implications

The dominant use of non-risk sharing-based financing has undermined the greater possibility of Islamic banking to contribute more to the EG of the country. Banks and other financial institutions need to pay greater attention to systemic risk created by risk transfer and apply risk sharing methods of financing more vigorously to achieve greater equity, efficient allocation of resources, stability and growth of the financial system and welfare of the society as a whole.

Originality/value

This study has advanced the knowledge by examining the issue of Islamic financing principles and EG. This is probably one of the first attempts to find the linkage between Islamic financing principles and EG by taking into consideration two portfolios: risk sharing and non-risk sharing separately and provide significant insights for policy makers, market players and academicians.

Details

Managerial Finance, vol. 44 no. 6
Type: Research Article
ISSN: 0307-4358

Keywords

Article
Publication date: 9 January 2009

Muhammad Azeem Qureshi

It is now widely recognized that human development (HD) and economic growth (EG) are intertwined in two‐way feedback processes either leading to an upward spiral of…

3869

Abstract

Purpose

It is now widely recognized that human development (HD) and economic growth (EG) are intertwined in two‐way feedback processes either leading to an upward spiral of development or a poverty trap. This concept is used to overcome one of the limitations of a previous study by Qureshi which assumes exogenous gross domestic product (GDP). With endogenous GDP formulation, the impact of public expenditure on HD and EG in Pakistan is examined.

Design/methodology/approach

System dynamics approach is used to model, identify and help manage the development path of HD and EG in Pakistan given alternative policies for public expenditure on HD and EG. For this purpose the model endogenously determines path of population cohorts, and education, health and economic indicators.

Findings

The simulation results suggest that the current level of public expenditure on HD is extremely low and any further decrease will have irreversible negative impact on HD and economic indicators, even if the resources so saved are effectively invested in EG. Further, higher public expenditure on EG may neither result into better HD indicators nor economic indicators. On the contrary, higher public expenditure on HD not only improves HD indicators but also supplements EG. The results of this study conform to the results of earlier research and challenge the very basis of fiscal policy in Pakistan which has continually ignored HD over decades.

Research limitations/implications

The model boundary excludes possible causal links of public expenditure, HD and income distribution. Identification and inclusion of these causalities may improve understanding of perpetuating asymmetric income distribution in Pakistan its role in HD and EG trade‐off.

Practical implications

This paper suggests reorientation of fiscal policy in Pakistan and to anchor it to HD by allocating more public funds.

Originality/value

The unique characteristic of this model is explicit modelling of population cohorts in a two‐way feedback relationship with economic development considering the delays and non‐linearities involved in this process.

Details

International Journal of Social Economics, vol. 36 no. 1/2
Type: Research Article
ISSN: 0306-8293

Keywords

Article
Publication date: 7 May 2020

Hummera Saleem, Malik Shahzad Shabbir and Muhammad Bilal khan

The purpose of this study is to analyze the dynamic causal relationship between foreign direct investment (FDI), gross domestic product (GDP) and trade openness (TO) on a…

Abstract

Purpose

The purpose of this study is to analyze the dynamic causal relationship between foreign direct investment (FDI), gross domestic product (GDP) and trade openness (TO) on a set of five selected South Asian countries.

Design/methodology/approach

This study used newly developed bootstrap auto regressive distributed lags (ARDL) cointegration test to examine the long-run relationship among FDI, GDP and TO for selected South Asian countries for 1975–2016.

Findings

The economic growth (EG) is significantly related to TO for Bangladesh, India and Sri Lanka and the expansion of TO is crucial for growth in these countries. The results show that all countries (except Bangladesh) found the existence of long-run cointegration between FDI, GDP and TO, whereas FDI is a dependent variable. These results concluded that FDI and TO are contributing to EG in these selected countries.

Originality/value

This study is one of the first attempts to investigate the causal relationship and address the short and long dynamic among FDI, GDP and TO regarding five south Asian countries such as Bangladesh, India, Nepal, Pakistan and Sri Lanka.

Details

South Asian Journal of Business Studies, vol. 9 no. 2
Type: Research Article
ISSN: 2398-628X

Keywords

Article
Publication date: 25 September 2019

Kashif Munir and Ayesha Ameer

The purpose of this paper is to analyze the long-run as well as short-run nonlinear effect of foreign direct investment (FDI), economic growth (EG) and industrialization…

Abstract

Purpose

The purpose of this paper is to analyze the long-run as well as short-run nonlinear effect of foreign direct investment (FDI), economic growth (EG) and industrialization on environmental degradation (carbon dioxide (CO2) emissions) in Pakistan.

Design/methodology/approach

The study applies a nonlinear autoregressive distributive lag methodology to examine the long-run and short-run relationship among the variables. FDI, EG and industrialization are decomposed into positive and negative variations to examine the nonlinear relationship with CO2 emissions. Granger causality test is used to examine the direction of causality among the variables. The study uses annual time-series data of Pakistan from 1975 to 2016.

Findings

An increase in FDI has a positive and significant effect on CO2 emissions in the long run, while a decrease in FDI has a negative and insignificant effect on CO2 emissions. An increase in EG has a positive and significant effect, while a decrease in EG has a negative and insignificant effect on CO2 emissions in the long run. An increase in industrialization has a positive and significant effect on CO2 emissions, while a decrease in industrialization has a negative and insignificant effect on CO2 emissions. Unidirectional causality flows from CO2 emissions to a positive partial sum of FDI, EG, industrialization and a negative partial sum of EG in the short run.

Practical implications

The government has to establish the environmental regulation for industrial sectors. Research and development centers are required at government and private levels to control pollution through new technologies. Regulations and restrictions are required on the foreign investor to adopt friendly environmental policies.

Originality/value

This study contributes to the existing literature by analyzing the nonlinear effects of FDI, industrialization and EG on environmental pollution in Pakistan. The main significance of this investigation is to provide the essential evidence, information and better understanding to key stakeholders of the environment.

Details

Management of Environmental Quality: An International Journal, vol. 31 no. 1
Type: Research Article
ISSN: 1477-7835

Keywords

Article
Publication date: 30 April 2021

Yu Zhuang, Shuili Yang, Supat Chupradit, Muhammad Atif Nawaz, Rong Xiong and Cihat Koksal

First, the current study contributes to the available debate by reinvestigating the impact of economic growth (EG), foreign direct investment (FDI), technological…

Abstract

Purpose

First, the current study contributes to the available debate by reinvestigating the impact of economic growth (EG), foreign direct investment (FDI), technological innovation (TI) and inflation (INF) on trade openness (TO). Second, the study tests the moderating role of institutional quality (INS) on the relationship among EG, FDI, TI and TO. Third, the study tests how TO contributes to EG efficiency.

Design/methodology/approach

The study collects the data from the group of twenty (G20) economies for the period of 1998–2020. The study applied the Kao (1999), Pedroni (2001), and Palamuleni (2017) cointegration tests to test the long-run association between variables. The study applied fully modified least square (FMOLS) and dynamic least square (DOLS) models to test the hypotheses.

Findings

Findings of the study showed the positive impact of EG, FDI and TI on TO, which becomes more positive in the presence of institutional quality. Results indicate that INS plays an enhancing role in the relationship between FDI and TO, EG and TO and TI and TO. The study showed a negative relationship between INF and TO, and institutional quality plays a buffering role in the relationship between INF and TO.

Originality/value

First, the study reinvestigates the empirical association among EG, FDI, TI, INF and TO. Second, the study tests the moderating role of INS on the relationship between the proposed variables by developing an index of all the indicators of INS. Third, the study tests the contributions of TO in economic efficiency (ECE). The contributions of the present study will increase the available literature of TO and help the policy makers of G20 nations to suggest important policies to promote TO and ECE.

Details

Business Process Management Journal, vol. 27 no. 6
Type: Research Article
ISSN: 1463-7154

Keywords

1 – 10 of over 2000