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Open Access
Article
Publication date: 5 December 2023

Folorunsho M. Ajide and James T. Dada

The study's objective is to examine the relevance of globalization in affecting the size of the shadow economy in selected African nations.

Abstract

Purpose

The study's objective is to examine the relevance of globalization in affecting the size of the shadow economy in selected African nations.

Design/methodology/approach

To do this, the authors employ the KOF globalization index and implement both static and dynamic common correlated mean group estimators on a panel of 24 African nations from 1995–2017. This technique accommodates the issue of cross-sectional dependence, sample bias and endogenous regressors. Panel threshold analysis is also conducted to establish the nonlinearity between globalization and the shadow economy. To examine the causality between the variables, the study employs Dumitrescu and Hurlin's panel causality test.

Findings

The results show that globalization reduces the size of the shadow economy. The results of the nonlinear analysis suggest a U-shaped relationship. Overall globalization has a threshold impact of 48.837%, economic globalization has 45.615% and political globalization has 66.661% while social globalization has a threshold value of 35.744%. The results of the panel causality show that there is a bidirectional causality between the two variables.

Practical implications

The results suggest that the government and other relevant authorities need to introduce capital controls and other policy measures to moderate the degree of social, political and cultural diffusion. Appropriate policies should be formulated to monitor the extent of African economic openness to other continents to maximize the gains from globalization.

Originality/value

Apart from being the first study in the African region that evaluates the relevance of globalization in controlling the shadow economy, it also analyzes the dynamics and threshold analysis between the two variables using advanced panel econometrics which makes the study unique. The study suggests that globalization tools are useful for affecting the size of the shadow economy in Africa. This study provides fresh empirical evidence on the impact of globalization on the shadow economy in the case of Africa.

Details

Review of Economics and Political Science, vol. 9 no. 2
Type: Research Article
ISSN: 2356-9980

Keywords

Article
Publication date: 15 December 2023

Abdulkadir Abdulrashid Rafindadi, Aliyu Buhari Isah and Ojonugwa Usman

This paper aims to empirically examine the impact of economic development and energy consumption in Saudi Arabia (the leading OPEC giant and the Arab energy icon country) between…

Abstract

Purpose

This paper aims to empirically examine the impact of economic development and energy consumption in Saudi Arabia (the leading OPEC giant and the Arab energy icon country) between 1971 and 2015, whilst incorporating globalization, financial development and capital accumulation.

Design/methodology/approach

This study uses econometric tools and the analytical framework based on the autoregressive distributed lag (ARDL) model.

Findings

The study found that, unlike economic development, globalization and financial development increased energy consumption. Also, capital accumulation created a boost in the country’s energy consumption. Results of variance decomposition indicate that the innovative shocks in globalization and financial development affected energy consumption at the rates of 15.28% and 28.98%, respectively, over 15 years’ period, while shocks in capital accumulation affected energy consumption at a rate of only about 1.24%. In addition, the results of impulse response function show that globalization and economic development were highly responsive to shocks in financial development, and capital accumulation greatly spurred financial development.

Research limitations/implications

The findings of this study have implication for promoting an efficient and sustainable energy systems that enhance sustainable development based on the accrued benefits of globalization, financial development and capital accumulation.

Originality/value

Given the increasing level of globalization, financial development and energy consumption, our study uses econometric tools and the analytical framework based on the ARDL model to revisit how energy consumption is influenced by economic development in Saudi Arabia by incorporating other determinants of energy consumption such as globalization, financial development and capital accumulation. The results were validated based on the innovative accounting.

Details

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

Keywords

Article
Publication date: 30 October 2023

Le Thanh Ha

This study aims to examine connections between five variables, including innovation in environment-related technology (EI), trade openness (TRADE), CO2 emissions (CO2) and foreign…

Abstract

Purpose

This study aims to examine connections between five variables, including innovation in environment-related technology (EI), trade openness (TRADE), CO2 emissions (CO2) and foreign direct investment (FDI) from 1994 to 2019.

Design/methodology/approach

This study used an extended joint connectedness technique and the time-varying parameter vector autoregression (TVP-VAR) method. The analysis focuses on the variables of innovation in environment-related technology (EI), trade openness (TRADE), CO2 emissions (CO2) and foreign direct investment (FDI) using data from 1994 to 2019.

Findings

The results demonstrate that innovation in environment-related technology and an openness to the global network captured by FDI are identified as crucial net transmitters of shocks. In addition, an openness to the global trade network captured by TRADE turns from a transmitter to a receiver of shocks and vice versa. Moreover, it can be seen that the impact of EI was significant in the first five years of the observed period, and it transmitted the largest shock in 1997.

Practical implications

With regard to policy implications, the findings offer valuable insights for investors and policymakers. As the tradeoff between business efficiency and environmental sustainability diminishes, it is essential for Vietnam’s economy and enterprises to embrace green and sustainable growth in line with global trends. In a world characterized by uncertainties and risks, enterprises need to develop strategies to manage risks and shocks arising from geopolitical tensions, input material supply, financial–monetary instability and natural disasters.

Originality/value

This study contributes to the existing literature in two significant ways. First, as previously emphasized, this paper represents the first attempt to investigate the relationship between economic globalization and environmental innovation. Second, this study proposes a novel methodology that is better suited for analyzing volatility interlinkages across different market types.

Details

International Journal of Innovation Science, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1757-2223

Keywords

Article
Publication date: 10 January 2023

Festus Victor Bekun, Bright Akwasi Gyamfi, Mfonobong Udom Etokakpan and Burçin Çakir

This purpose of this study is to explore the impact of global trend of economic integration and interconnectedness which has drawn the attention of world economies and their…

Abstract

Purpose

This purpose of this study is to explore the impact of global trend of economic integration and interconnectedness which has drawn the attention of world economies and their implications on trade inflow. This trajectory has its impact, either positive/negative, on key macroeconomic indicators, to say the least on environmental sustainability, especially emerging economies. To this end, the need to explore the connection between foreign direct investment (FDI) inflow and energy consumption amidst the wave of economic globalisation is timely and pertinent for the case of Turkey.

Design/methodology/approach

This study seeks to explore the interaction between the outlined variables in a carbon-income framework for annual time series data from 1970 to 2016. A series of econometrics strategies was used consisting of unit root tests to examine the stationarity properties of the highlighted series. Subsequently, Pesaran’s Bounds testing technique is used to explore the long-run equilibrium relationship between the highlighted variables in conjunction with the Johansen cointegration test. For long-run regression coefficients, Pesaran’s autoregressive distributed lag and dynamic ordinary least squares methodology are used, and innovative accounting approaches are used to explore the responsiveness of each variable on another.

Findings

Empirical results validate the pollution haven hypothesis (PHH) in the long run for the case of Turkey. Thus suggesting that FDI inflow induced environmental degradation in Turkey. Additionally, this study observed that renewable energy, on the contrary, improves the quality of the environment. This study also affirms the presence of the environmental Kuznets curve phenomenon, indicating that Turkey, at its early stage of economic trajectory, emphasis is on economic growth rather than environmental quality. This suggests a need for more deliberate action(s) by the government administrators to pursue cleaner FDI inflow and energy technologies and strategies to foster a clean environment in Turkey and a cleaner ecosystem at large.

Originality/value

This study is unique in its choice of variables which is in line with the United Nations Sustainable Development Goals (SDGs) agenda to be achieved by 2030 and is very limited in the extant literature. From the economic perspective, the effect of the PHH is of interest especially to ascertain the extent the interplay among the variables has on the economy of Turkey. The empirical insights on PHH hypothesis have received less documentation in the extant literature especially for emerging economy like Turkey. Thus, this study seeks to revisit this theme for Turkey with aim to presents environmentally sustainable strategies without compromise for economic growth. Thus, this study seeks to revisit this theme.

Details

International Journal of Energy Sector Management, vol. 17 no. 6
Type: Research Article
ISSN: 1750-6220

Keywords

Article
Publication date: 1 December 2023

Ebaidalla M. Ebaidalla

Despite the importance of tax policy in reducing energy consumption and carbon emissions, there is a dearth of research on the environmental impact of indirect taxes. This paper…

Abstract

Purpose

Despite the importance of tax policy in reducing energy consumption and carbon emissions, there is a dearth of research on the environmental impact of indirect taxes. This paper examines the impact of indirect taxes on carbon dioxide (CO2) emissions, with an emphasis on institutional quality.

Design/methodology/approach

The study uses the Government Revenue Dataset (2021), comprising 143 countries, dividing into 114 developing and 29 developed countries, during the period between 1996 and 2019. The author adopts panel data techniques, with Driscoll–Kraay standard errors to account for the issue of cross-sectional dependence (CSD).

Findings

The results indicate that indirect tax revenues have a negative and significant impact on CO2 emissions for the total sample. The subsample analysis revealed that while indirect taxes reduce carbon emissions in developing countries, opposed results are reported for developed countries. This finding implies that most of the advanced countries have already reached a high level of taxes, at which carbon emissions increase as indirect tax increases further. Interestingly, the results revealed that institutional quality enhances the role of indirect taxes in mitigating carbon emissions for both developing and developed countries.

Originality/value

To the best of the authors' knowledge, this is the sole study using the newly developed tax data by the United Nations University, World Institute for Development Research (UNU-WIDER) to investigate the impact of indirect taxes on carbon emissions, with an emphasis on institutional quality. The existing literature focuses on specific taxes, like carbon taxes, with no comprehensive research on the link between indirect taxes and carbon emissions.

Details

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

Keywords

Article
Publication date: 31 October 2023

Nooshin Karimi Alavijeh and Samane Zangoei

Expansion of the consumption of renewable energy is a significant issue for reducing global warming, to cope with climate change and achieve sustainable development. This study…

Abstract

Purpose

Expansion of the consumption of renewable energy is a significant issue for reducing global warming, to cope with climate change and achieve sustainable development. This study aims to examine how research and development expenditure (R&D) affects renewable energy development in developed G-7 countries over the period from 2000 to 2019. Variables of trade liberalization and CO2 emissions are considered control variables.

Design/methodology/approach

This study has adopted a panel quantile regression. The impact of the variables on renewable development has been examined in quantiles of 0.1, 0.25, 0.5, 0.75 and 0.9. Also, a robust examination is accomplished by applying generalized quantile regression (GQR).

Findings

The empirical findings reveal a positive and significant relationship between R&D and the consumption of renewable energy in 0.1, 0.25, 0.5 and 0.75 quantiles. Also, the findings describe that the expansion of trade liberalization and CO2 emissions can significantly increase the development of renewable energy in G-7 countries. Furthermore, GQR verifies the main outcomes.

Practical implications

These results have very momentous policy consequences for the governments of G-7 countries. Therefore, investment and support for the R&D section to promote the development of renewable energy are recommended.

Originality/value

This paper, in comparison to other research, used panel quantile regression to investigate the impact of factors affecting renewable energy consumption. Also, to the best of the authors’ knowledge, no study has perused the effect of R&D along with trade liberalization and carbon emissions on renewable energy consumption in G-7 countries. Also, in this paper, as a robustness check for panel quantile regression, the GQR has been used.

Details

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

Keywords

Article
Publication date: 10 July 2023

George Hondroyiannis, Evangelia Papapetrou and Pinelopi Tsalaporta

The Organization for Economic Cooperation and Development (OECD) countries are facing unprecedented challenges related to climate change and population aging. The purpose of the…

Abstract

Purpose

The Organization for Economic Cooperation and Development (OECD) countries are facing unprecedented challenges related to climate change and population aging. The purpose of the analysis is to explore the relationship between population aging and environmental degradation, accounting for human capital, using a sample of 19 OECD countries over the period 1980–2019.

Design/methodology/approach

On the empirical methodology, the analysis uses panel estimators with heterogenous coefficients and an error structure that takes into consideration cross-country heterogeneity and cross-sectional dependence for a panel of 19 OECD countries over the period 1980–2019. To examine the relationship between population aging and environmental degradation, the authors employ two alternative measures of environmental degradation that is energy consumption and CO2 emissions in metric tons per capita. Concerning the regressors, the authors account for two alternative aging indicators, namely the elderly population and the old-age dependency ratios to confirm robustness.

Findings

The analysis provides evidence that population aging and human capital development (IHC) lead to lower energy consumption in the OECD sample. Overall, the growing number of elderly people in the OECD seems to act as a mitigating factor for energy consumption. The authors view these results as conveying the message that the evolution of population aging along with channeling government expenditures towards human capital enhancement are important drivers of curbing energy consumption and ensuring environmental sustainability. The authors' research is of great significance for environmental policymakers by illuminating the favorable energy consumption patterns that population aging brings to advanced economies.

Research limitations/implications

The main limitation of this study concerns data availability. Future research, and subject to greater data availability in the future, could dig deeper into understanding the dynamics of this complex nexus by incorporating additional control variables. Similarly, the authors focus on aggregate renewable energy consumption, and the authors do not explicitly model the sources of renewable energy (wind, hydropower, solar power, solid biofuels and other). Additional analysis of the breakdown of renewable energy sources would be insightful – subject to data availability – especially for meeting the recently agreed new target of 42.5% for European Union (EU) countries by 2030. A deep transformation of the European energy system is needed for the EU to meet the target. Finally, extending the model to include a range of non-OECD countries that are also experiencing demographic transformations is a promising avenue for future research.

Originality/value

To the best of the authors' knowledge, this study is the first to examine the effects of population aging and human capital on environmental degradation using a broad set of OECD countries and advanced spectrum estimation methods. Given cross-sectional dependencies and cross-country heterogeneity, the authors' empirical results underline the importance of cross-OECD policy spillovers and knowledge diffusions across the OECD countries. The new “energy culture” calls for concerted policy action even in an aging era.

Details

Journal of Economic Studies, vol. 51 no. 2
Type: Research Article
ISSN: 0144-3585

Keywords

Article
Publication date: 26 July 2023

Alisha Mahajan and Kakali Majumdar

Trade of environmentally sensitive goods (ESGs) is often exposed to countries with less stringent regulations suggesting that those countries have comparative advantage in the…

Abstract

Purpose

Trade of environmentally sensitive goods (ESGs) is often exposed to countries with less stringent regulations suggesting that those countries have comparative advantage in the polluting sector. The Group of Twenty (G20) members are among the highest polluters, globally. Different stringency policies are enacted time to time in G20 to control environment pollution. However, the impact of policy stringency on export performance of ESGs is seldom examined. The paper aims to address some of the issues concerning this matter.

Design/methodology/approach

The present study aims to address the short run and long-run association between Revealed Comparative Advantage of ESGs and Environmental Policy Stringency Index for the period of 1990–2019 in G20. Periodic fluctuations and time adjustment mechanism are also studied. Second Generation Panel Cointegration, Vector Error Correction, Impulse Response Function and Variance Decomposition methods are employed to address the objectives.

Findings

Result is evident that more exposure to stringent environmental regulations reduces the comparative advantage of ESGs in the long run. But there is no evidence of the short-run relationship between the variables. The possible reason could be that new regulations enacted prove fruitful in the long run.

Originality/value

The novelty of the study is to focus on inter linkages between stringency and global export competitiveness in G20, almost nonexistent in the past studies. The study also provides a road map to policymakers to find out potential ways for sustainable development by balancing environmental stringency measures and international trade.

Peer review

The peer review history for this article is available at: https://publons.com/publon/10.1108/IJSE-08-2022-0560

Details

International Journal of Social Economics, vol. 51 no. 1
Type: Research Article
ISSN: 0306-8293

Keywords

Article
Publication date: 5 April 2024

Mahima Raina and Eunae Cho

Despite the recognition that contextual factors play a key role in shaping individuals’ work-family (WF) interface, empirical research that simultaneously considers individual…

Abstract

Purpose

Despite the recognition that contextual factors play a key role in shaping individuals’ work-family (WF) interface, empirical research that simultaneously considers individual, roles and contextual factors is scarce. Drawing on the pyramid model of work-home interface, we delve into the intersection among sex, gender role ideology (GRI) and urbanization (URB) in relation to WF conflict and enrichment in India. Specifically, we explored whether and how sex (male vs female), GRI (traditional vs egalitarian) and URB (big vs small city) interact to predict WF conflict and WF enrichment.

Design/methodology/approach

The data were collected from 586 full-time employees working in both more and less urbanized cities in India. Moderation analyses were utilized to study the interaction effects on WF conflict and enrichment.

Findings

Results indicate that GRI is a stronger driver of WF experiences, especially WF enrichment, for women regardless of location. The study contributes to the understanding of WF experiences in India and addresses the complexity of WF experiences, especially with respect to sex and gender.

Originality/value

Our study offers a nuanced understanding of WF experiences in India by integrating micro- to macro-level antecedents, thereby addressing the complexity of WF experiences. While a lot of research explains sex and gender differences in WF experiences, our study highlights how these experiences vary with the degree of URB.

Details

Evidence-based HRM: a Global Forum for Empirical Scholarship, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2049-3983

Keywords

Article
Publication date: 24 May 2023

Hazwan Haini and Wei Loon Pang

This study examines whether the gains from export sophistication is conditional on the level of globalisation. Previous studies have shown that the impact of export sophistication…

Abstract

Purpose

This study examines whether the gains from export sophistication is conditional on the level of globalisation. Previous studies have shown that the impact of export sophistication on growth varies depending on the level of a country's economic development. The authors argue that globalisation plays an important role in influencing the gains from export sophistication, mainly through the competition and scale effects. The competition effect disincentivises domestic firms to engage in export markets, while the scale effect incentivises knowledge accumulation and innovation.

Design/methodology/approach

The authors employ data from 163 economies from 1995 to 2018. The authors re-estimate values for export sophistication using ordinary goods from 1995 to 2018 and estimate a growth model using the generalised method of moments (GMM) to control for endogeneity and simultaneity issues.

Findings

The results show that the gains from export sophistication and globalisation is greater for economies with higher levels of economic development compared to economies with low levels of economic development. Moreover, the authors find that the gains from export sophistication are conditional on the level of globalisation. The authors’ results show that the marginal impact of export sophistication diminishes as developing economies become more globalised, while advanced economies gain more from export sophistication when globalisation precedes at a higher level.

Originality/value

Previous studies have generally examined the conditional growth effects of export sophistication on trade, economic development and other structural factors. To the best of the authors’ knowledge, this is the first study to examine the impact of globalisation, and the authors exploit the multidimensional concept of globalisation to test the hypothesis.

Peer review

The peer review history for this article is available at: https://publons.com/publon/10.1108/IJSE-01-2023-0001.

Details

International Journal of Social Economics, vol. 50 no. 12
Type: Research Article
ISSN: 0306-8293

Keywords

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