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1 – 10 of 74The purpose of this study is to examine the influence of urbanization on energy consumption, including economic growth, globalization and “foreign direct investment (FDI)” inflow…
Abstract
Purpose
The purpose of this study is to examine the influence of urbanization on energy consumption, including economic growth, globalization and “foreign direct investment (FDI)” inflow as control variables.
Design/methodology/approach
This study uses yearly panel data from 19071 to 2018 on five selected South Asian economies. It applies the “pooled mean group (PMG)” estimator and the “Dumitrescu-Hurlin (D-H)” panel causality test.
Findings
The PMG estimators reveal that urbanization causes energy consumption negatively in the long run because of an unusual and messy urbanization process. At the same time, it has no impact on the latter in the short run. Per capita income has both long- and short-run positive influences on energy use. Globalization causes energy consumption positively in the long run but does not affect it in the short run. FDI inflow has a strong positive impact on energy use in the long run and adverse effects in the short run. The Dumitrescu–Hurlin causality test reveals feedback relationships between “urbanization and energy consumption,” “globalization and energy consumption” and one-way causation from “per capita income to energy consumption.” It validates the findings of the PMG estimators.
Practical implications
The results of this study indicate that South Asia may focus on enhancing the availability of energy in the region and producing more renewable energy to add to its energy portfolio to meet growing energy demand, particularly among urban dwellers. Moreover, they should raise their real per capita incomes and augment the standard of living of low-income city dwellers to make urbanization more serviceable and comfortable.
Originality/value
This study is original. As far as the author is aware, this is a maiden attempt to investigate urbanization's effects on energy usage in South Asia in the preview of globalization and FDI.
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This paper explores whether data back the claim that imports of armaments are inherently bad for economic growth. Regardless of one's point of view, the production and trade of…
Abstract
Purpose
This paper explores whether data back the claim that imports of armaments are inherently bad for economic growth. Regardless of one's point of view, the production and trade of weaponry is a significant industry with serious economic implications that warrant investigation. The financial repercussions of military spending have been extensively studied, but the economic effects of arms importation remain unknown.
Design/methodology/approach
This study adopts a pooled mean group approach to investigate the nexus between arms imports, military expenditure and per capita GDP for a balanced panel of twenty-five of the top arms importers in the world from 2000 to 2021.
Findings
The authors find that arms imports and military spending negatively impact GDP per capita in the short run, but military spending is beneficial over the long run. The authors also used the Dumitrescu Hurlin Granger causality test, which revealed a unidirectional causation between per capita GDP and military expenditure, and a unidirectional causal relationship from military spending to arms imports.
Research limitations/implications
This paper is deficient in a few aspects: first, it looks at only those countries comprising the top 70% of arms imports. Second, it omits many political, technological and legal factors that impact arms imports and military expenditures.
Originality/value
This paper looks into the impact of defense spending and arms imports on economic growth for twenty-five nations with the highest share of arms imports in recent times. It is a significant addition to the literature as it resolves the debate of whether or not the military expenditure is wasteful and whether arms imports significantly harm the nation's economic growth.
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Charles O. Manasseh, Ifeoma C. Nwakoby, Ogochukwu C. Okanya, Nnenna G. Nwonye, Onuselogu Odidi, Kesuh Jude Thaddeus, Kenechukwu K. Ede and Williams Nzidee
This paper aims to assess the impact of digital financial innovation on financial system development in Common Market for eastern and Southern Africa (COMESA). This paper…
Abstract
Purpose
This paper aims to assess the impact of digital financial innovation on financial system development in Common Market for eastern and Southern Africa (COMESA). This paper evaluates the dynamic relationship between digital financial innovation measures and financial system development using time series data from COMESA countries for the period 1997–2019.
Design/methodology/approach
A dynamic autoregressive distributed lag model (ARDL) was adopted and the mean group (MG), pooled mean group (PMG) and dynamic fixed effect (DFE) of the model were estimated to evaluate the short- and long-run impact. In addition, the dynamic generalized method of moments (DGMM) was adopted for a robustness check. The Hausman test results show PMG to be the most consistent and efficient estimator, while the coefficient of lagged dependent variable of different GMM is less than the fixed effect coefficient, and, as such, suggests system GMM is the most suitable estimator. Data for the study were sourced from World Bank Development Indicator (WDI, 2020), World Governance Indicator (WGI, 2020) and World Bank Global Financial Development Database (GFD, 2020).
Findings
The result shows that digital financial innovation significantly impacts financial system development in the long run. As such, the evidence revealed that automated teller machines (ATMs), point of sale (POS), mobile payments (MP) and mobile banking are significant and contribute positively to financial system development in the long run, while mobile money (MM) and Internet banking (INB) are insignificant but exhibit positive and inverse relationship with financial development respectively. Further investigation revealed that institutional quality and a stable macroeconomic environment including their interactive term are significantly imperative in predicting financial system development in the COMESA region.
Practical implications
Researchers recommend a cohesive and conscious policy that would checkmate the divergence in the short run and suggest a common regional innovative financial strategy that could be pursued to incentivize technology transfer needed to promote financial system development in the long run. More so, plausible product and process innovations may be adapted to complement innovative institutions in the different components of the COMESA financial system.
Social implications
Digital financial innovation services if well managed increase the inherent benefits in financial system development.
Originality/value
To the best of the authors’ knowledge, this paper presents new background information on digital financial innovation that may stimulate the development of the financial system, particularly in the COMESA region. It also exposes the relevance of digital financial innovation, institutional quality and stable macroeconomic environment as well as their interactive effect on COMESA financial system development.
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This study aims to examine the effect of foreign direct investment (FDI) inflows on tax revenue in 34 developed and developing countries from 2006 to 2020.
Abstract
Purpose
This study aims to examine the effect of foreign direct investment (FDI) inflows on tax revenue in 34 developed and developing countries from 2006 to 2020.
Design/methodology/approach
Feasible generalised least squares (FGLS), a dynamic panel of a two-step system generalised method of moments (GMM) system and a pool mean group (PMG) panel autoregressive distributed lag (ARDL) approach were used to compare the developed and developing countries. Basic estimators were used as pre-estimators and diagnostic tests were used to increase robustness.
Findings
The FGLS, a two-step system of GMM, PMG–ARDL estimator’s results showed that there was a significant negative long and positive short-term in most countries relationship between FDI inflows and tax revenue in developed countries. This study concluded that attracting investments can improve the quality of institutions despite high tax rates, leading to low tax revenue. Meanwhile, there was a significant positive long and negative short-term relationship between FDI inflows and tax revenue in the developing countries. The developing countries sought to attract FDI that could be used to create job opportunities and transfer technology to simultaneously develop infrastructure and impose a tax policy that would achieve high tax revenue.
Originality/value
The present study sheds light on the effect of FDI on tax revenue and compares developed and developing countries through the design and implementation of policies to create jobs, transfer technology and attain economic growth in order to assure foreign investors that they would gain continuous high profits from their investments.
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Khaled Elorabi, Suryati Ishak and Mohamed Maher
Previous literature has investigated the connection amongst remittances, political stability and unemployment in remittance-receiving economies separately. Besides, they did not…
Abstract
Purpose
Previous literature has investigated the connection amongst remittances, political stability and unemployment in remittance-receiving economies separately. Besides, they did not cover the Middle East and North African (MENA) region.
Design/methodology/approach
To this end, this research uses the pooled mean group (PMG) method.
Findings
The findings suggest that the influence of remittances on lowering unemployment accelerates in recipient economies with high levels of political stability.
Practical implications
Policymakers in MENA countries should vigorously pursue political stability, which plays a crucial role in boosting the influence of inward remittances on unemployment alleviation. This is accomplished by establishing solid institutions that contribute to ensuring fair politics, increasing citizens' trust in the government, enhancing the rule of law and protecting investors and prioritizing policies and programs that promote political stability.
Originality/value
This paper, therefore, aspires to empirically examine the impacts of inward remittances on unemployment via the moderating role of political stability in thirteen MENA-receiving countries from 1996 to 2020.
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Jennifer Nabaweesi, Twaha Kaawaase Kigongo, Faisal Buyinza, Muyiwa S. Adaramola, Sheila Namagembe and Isaac Nabeta Nkote
The study aims to explore the validity of the modern renewable energy-environmental Kuznets curve (REKC) while considering the relevance of financial development in the…
Abstract
Purpose
The study aims to explore the validity of the modern renewable energy-environmental Kuznets curve (REKC) while considering the relevance of financial development in the consumption of modern renewable energy in East Africa Community (EAC). Modern renewable energy in this study includes all other forms of renewable energy except traditional use of biomass. The authors controlled for the effects of urbanization, governance, foreign direct investment (FDI) and trade openness.
Design/methodology/approach
Panel data of the five EAC countries of Burundi, Kenya, Rwanda, Tanzania and Uganda for the period 1996–2019 were used. The analysis relied on the use of the autoregressive distributed lag–pooled mean group (ARDL-PMG) model, and the data were sourced from the World Development Indicators (WDI), World Governance Indicators (WGI) and International Energy Agency (IEA).
Findings
The REKC hypothesis is supported for modern renewable energy consumption in the EAC region. Financial development positively and significantly affects modern renewable energy consumption, whereas urbanization, FDI and trade openness reduce modern renewable energy consumption. Governance is insignificant.
Originality/value
The concept of the REKC, although explored in other contexts such as aggregate renewable energy and in other regions, has not been used to explain the consumption of modern renewable energy in the EAC.
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The discussion on international migration has become a significant part of globalization and a topical issue in international relations, especially in developing economies which…
Abstract
Purpose
The discussion on international migration has become a significant part of globalization and a topical issue in international relations, especially in developing economies which mostly relies on migrant remittances. The purpose of the study is to examine whether financial market development (equity market development and banking sector development) really drives migrant remittance flow in Sub-Saharan Africa (SSA).
Design/methodology/approach
The study employs the dynamic heterogeneous panel data approach-the pool mean group (PMG) and the mean group (MG) techniques in analyzing the model based on data obtained from 27 SSA countries covering the period 2000–2020.
Findings
The findings of the study revealed that financial market development (equity market development and banking sector development) is a key driver of migrant remittances flows in the SSA region. In addition, the study revealed that the following macroeconomic variables such as real interest rate, unemployment rate, global growth, emigration, and economic growth are also determinants of migrant remittances flows in the SSA region.
Originality/value
The reviewed empirical literature revealed that several studies documents that the macroeconomic determinants of migrant remittances include inflation, GDP, interest rate, exchange rate, population growth, financial sector development and unemployment rate. Most of these studies fail to capture both equity market development and robust banking sector development (financial market development) as critical drivers of migrant remittances flow in SSA. Also, this study uses a robust measure of equity market development and banking sector development, unlike previous studies.
Peer review
The peer review history for this article is available at: https://publons.com/publon/10.1108/IJSE-05-2023-0361
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Gülin Vardar, Berna Aydoğan and Beyza Gürel
Considering the evolving importance of green finance, this study uses climate-related development mitigation finance as a proxy of green finance and investigates the impact of…
Abstract
Purpose
Considering the evolving importance of green finance, this study uses climate-related development mitigation finance as a proxy of green finance and investigates the impact of green finance on ecological footprint as an indicator of environmental quality along with the influence of economic growth, renewable energy, greenhouse gas emissions, trade openness and urbanization across 47 developing countries over the period 2000–2018.
Design/methodology/approach
After finding the presence of cross-sectional dependency among variables, the second-generation panel unit root test was employed to detect the order of integration among the variables. Since all the variables were found to be stationary, Westerlund cointegration technique was employed to detect the long-run relationship among the variables. Then, the long-run elasticity among the dependent and independent variables was tested using fully modified ordinary least squares (FMOLS), dynamic ordinary least squares (DOLS) and pooled mean group–autoregressive distributed lag (PMG–ARDL) approaches.
Findings
The empirical findings suggest the presence of long-run relationship among all the variables, namely, ecological footprint, green finance, economic growth, renewable energy consumption, greenhouse gas emissions, trade openness and urbanization for the selected developing countries in the sample. Furthermore, economic growth, greenhouse gas emissions, trade openness and urbanization, all have a positive and significant impact on the ecological footprint, whereas renewable energy consumption and green finance have a significant and negative impact on the ecological footprint, which supports the view that environmental quality is improved with the greater use of renewable energy technologies and allocation of greater amounts of more green finance.
Originality/value
The empirical results of this study offer policymakers and regulators some implications for environmental policy for protecting the countries from ecological issues.
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Lincoln Sposito, Isabel Cristina Scafuto, Fernando Ribeiro Serra and Manuel Portugal Ferreira
The authors investigated how emotional intelligence (EI) affects the relationship between project managers' (PMgs) expertise and experience and project success for both the team…
Abstract
Purpose
The authors investigated how emotional intelligence (EI) affects the relationship between project managers' (PMgs) expertise and experience and project success for both the team and client.
Design/methodology/approach
This study collected 290 valid responses from IT project managers. The results were analyzed using an ordinary least squares (OLS) regression, with Process v4.0 procedure and the Johnson-Neyman (JN) technique to assess the moderating effect of the level of EI.
Findings
Results showed that moderate levels of EI can enhance the impact of PMgs' experience on the project client, while higher levels of EI are necessary to positively impact the team. Moderate levels of EI can improve PMgs' expertise impact on the project team, increasing their effectiveness in interactions with clients and other stakeholders.
Practical implications
It is recommended to consider emotional intelligence alongside technical skills when selecting project managers to address emotional labor, stress, stakeholder management and agility. Providing EI training and experiential learning opportunities internally can improve project managers' emotional intelligence.
Originality/value
This study contributes to the literature on emotional intelligence and project management, highlighting the relationship between technical skills and emotional intelligence levels of PMgs. This research emphasizes the significance of experience and EI in project management, particularly in overseeing complex projects. Additionally, moderate levels of EI enhance PMgs' effectiveness in engaging with stakeholders closely involved in projects.
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Muzffar Hussain Dar and Md Zulquar Nain
This study aims to examine the effect of economic growth and the moderating impact of inflation on financial development (FD) for six South Asian Association of Regional Countries…
Abstract
Purpose
This study aims to examine the effect of economic growth and the moderating impact of inflation on financial development (FD) for six South Asian Association of Regional Countries (SAARC)es during the period of 1990–2020. Besides, the inflation threshold level and FD index are also estimated.
Design/methodology/approach
This study uses several cross-sectional dependency tests, pooled mean group and panel fully modified least squares method. This study also makes use of principle component analysis in index construction.
Findings
The results indicate that economic growth positively impacts regions’ FD. The mediating term has a negative impact on FD when the inflation rate rises. The finding indicates after the 3.5% threshold limit, inflation changes its positive effect on FD. The constructed index is a superior measurement of FD because it controls measurement sensitivity and offers significant results.
Originality/value
To the best of the authors’ knowledge, this is the first empirical study in the context of SAARC to analyse the interaction effect of inflation on the growth–finance relationship. This study’s novelty is further ensured by estimating the threshold level of inflation and construction index.
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