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1 – 10 of over 1000Folorunsho 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.
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Umme Humayara Manni and Datuk. Dr. Kasim Hj. Md. Mansur
Energy security has been talked about by governments and policymakers because the global energy market is unstable and greenhouse gas emissions threaten the long-term health of…
Abstract
Purpose
Energy security has been talked about by governments and policymakers because the global energy market is unstable and greenhouse gas emissions threaten the long-term health of the global environment. One of the most potent ways to cut CO2 emissions is through the production and consumption of renewable energy. Thus, the purpose of this paper is to highlight the drivers that, if ambitious environmental policies are implemented, might improve energy security or prevent its deterioration.
Design/methodology/approach
The study uses a balanced panel data set for Indonesia, Malaysia, the Philippines, Singapore, Thailand and Vietnam that covers a period of 30 years (1990–2020). The pooled panel dynamic least squares is used in this study.
Findings
The findings show that renewable energy consumption is positively related to gross domestic product per capita, energy intensity per capita and renewable energy installed capacity. Wherein renewable energy use is inversely related to per capita electricity consumption, CO2 emissions and the use of fossil fuel electricity.
Originality/value
There is a lack of research identifying the factors influencing energy security in the ASEAN region. Therefore, this study focuses on the drivers that influence energy security, which are explained by the proportion of renewable energy in final energy consumption. Without identifying the demand and supply sources of energy, especially electricity production based on renewable energy techniques, it is hard for policymakers to achieve the desired renewable energy-based outcome.
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Sheereen Banon Fauzel, Verena Tandrayen-Ragoobur and Boopen Seetanah
Using panel data for the Regional Comprehensive Economic Partnership (RCEP) member states, the present study explored the role of RCEP negotiations on tourism development.
Abstract
Purpose
Using panel data for the Regional Comprehensive Economic Partnership (RCEP) member states, the present study explored the role of RCEP negotiations on tourism development.
Design/methodology/approach
A dynamic econometric model, namely the panel autoregressive dynamic lag model (PARDL) has been used. To test for panel causality, Dumitrescu–Hurlin panel causality tests were used.
Findings
Through the use of a dynamic econometric model, namely the PARDL, the results show that the RCEP negotiations, growth rates, as well as international trade contribute towards tourism development. Furthermore, the Dumitrescu–Hurlin panel causality tests confirm the existence of a bidirectional causal link between tourism development and RCEP negotiations. Finally, a unidirectional causal link is observed between tourism development and international trade.
Originality/value
This existing evidence on the topic seems to be very scant and limited to specific regions and particular regional trade agreements. This paper thus fills an important gap in the literature by advancing evidence about the effects of the RCEP on international tourism flows across member countries.
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Folorunsho M. Ajide and James Temitope Dada
Energy poverty is a global phenomenon, but its prevalence is enormous in most African countries, with a potential impact on quality of life. This study aims to investigate the…
Abstract
Purpose
Energy poverty is a global phenomenon, but its prevalence is enormous in most African countries, with a potential impact on quality of life. This study aims to investigate the impact of energy poverty on the shadow economy.
Design/methodology/approach
The study uses panel data from 45 countries in Africa over a period of 1996–2018. Using panel cointegrating regression and panel vector auto-regression model in the generalized method of moments technique.
Findings
This study provides that energy poverty deepens the size of the shadow economy in Africa. It also documents that there is a bidirectional causality between shadow economy and energy poverty. Therefore, the two variables can predict each other.
Practical implications
The study suggests that lack of access to clean and modern energy services contributes to the depth of the shadow economy in Africa. African authorities are advised to strengthen rural and urban electrification initiatives by providing adequate energy infrastructure so as to reduce the level of energy poverty in the region. To ensure energy sustainability delivery, the study proposes that the creation of national and local capacities would be the most effective manner to guarantee energy accessibility and affordability. Also, priorities should be given to the local capital mobilization and energy subsidies for the energy poor. Energy literacy may also contribute to the sustainability and the usage of modern energy sources in Africa.
Originality/value
Previous studies reveal that income inequality contributes to the large size of shadow economy in developing economies. However, none of these studies analyzed the role of energy poverty and its implications for underground economic operations. Inadequate access to modern energy sources is likely to deepen the prevalence of informality in developing nations. Based on this, this study provides fresh evidence on the implications of energy deprivation on the shadow economy in Africa using a heterogeneous panel econometric framework. The study contributes to the literature by advocating that the provision of affordable modern energy sources for rural and urban settlements, and the creation of good energy infrastructure for the firms in the formal economy would not only improve the quality of life but also important to discourage underground economic operations in developing economies.
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This study aims to investigate the implications of natural gas rents and institutions as co-drivers of economic growth, focusing on the Gas Exporting Countries Forum (GECF) with…
Abstract
Purpose
This study aims to investigate the implications of natural gas rents and institutions as co-drivers of economic growth, focusing on the Gas Exporting Countries Forum (GECF) with panel data between 2001 and 2021.
Design/methodology/approach
This research paper uses a specialised two stage estimator, the panel instrumental variable technique (panel IV), which takes care of the potential endogeneity issues in the model.
Findings
The findings show that natural gas rent significantly impacts the economic growth of the GECF. On average, natural gas rent increases the sample’s growth rate by about 2.634% percentage points in the short run. The result indicates that the qualities of institutions (political and economic) have a significant positive long-term effect on the economies of the GECF. In addition, the study’s energy price volatility positively correlates with the countries’ growth.
Research limitations/implications
There might be a need to investigate the effects of natural gas rents and institutions as co-growth drivers in each country within the GECF. The likelihood exists that the impact of natural gas rents and institutions on economic growth at the country’s level may differ from the outcome of such an experiment on the group level. Because of space and time limitations, this study could not carry out the specific country’s investigation of natural gas rents and institutions as a co-growth driver. That limitation may constitute further study to advance this study to a new height.
Practical implications
With good institutions, natural gas rent is likely to be an alternative growth driver for some economies that rely on fossil fuels like oil as a growth driver. By extension, the GECF has the potential to rival Organisation of Petroleum Exporting Countries (OPEC) in the global energy market, particularly in achieving Sustainable Development Goal number seven. In essence, evidence in this study suggests that natural gas rent has long-term positive effects on the growth of the GECF, conditioned on good institutions. Moreover, the drive of global energy consumption towards sustainable energy usage is an economic blessing for the GECF. By extension, the demand for natural gas would continue to rise, creating opportunities to improve natural gas rents. By implication, the GECF would continue to benefit from the pursuit of sustainability as the world shifts towards energy consumption with less CO2.
Originality/value
Firstly, this study models the qualities of institutions for the GECF. Secondly, to the best of the author’s knowledge, this study is the first attempt to examine natural gas rents and the qualities of institutions as co-determinants of economic growth among the GECF (a potential cartel).
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Faris ALshubiri and Mawih Kareem Al Ani
This study aims to analyse the intellectual property rights (INPR), foreign direct investment (FDI) inflows and technological exports of 32 developing and developed countries for…
Abstract
Purpose
This study aims to analyse the intellectual property rights (INPR), foreign direct investment (FDI) inflows and technological exports of 32 developing and developed countries for the period of 2006–2020.
Design/methodology/approach
Diagnostic tests were used to confirm the panel least squares, fixed effect, random effect, feasible general least squares, dynamic ordinary least squares and fully modified ordinary least squares estimator results as well as to increase the robustness.
Findings
According to the findings for the developing countries, trademark, patent and industrial design applications, each had a significant positive long-run effect on FDI inflows. In addition, there was a significant positive long-run relationship between patent applications and medium- and high-technology exports. Meanwhile, trademark and industrial design applications had a significant negative long-term effect on medium- and high-technology exports. In developed countries, patent and industrial design applications each have a significant negative long-term on medium- and high-technology exports. Furthermore, patent and trademark applications each had a significant negative long-run effect on FDI inflows.
Originality/value
This study contributes significantly to the focus that host countries evaluate the technology gaps between domestic and foreign investors at different industry levels to select the best INPR rules and innovation process by increasing international cooperation. Furthermore, the host countries should follow the structure–conduct–performance paradigm based on analysis of the market structure, strategic firms and industrial dynamics systems.
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Samson Edo and Osaro Oigiangbe
The purpose of this study is to empirically investigate how external debt vulnerability has affected the economy of emerging countries over time, with particular reference to…
Abstract
Purpose
The purpose of this study is to empirically investigate how external debt vulnerability has affected the economy of emerging countries over time, with particular reference to Sub-Saharan African countries. It also deals with the policy issues associated with the economic effects.
Design/methodology/approach
The techniques of dynamic ordinary least squares and fully modified ordinary least squares are used in this investigation, covering the period 1990–2022. A panel of 43 Sub-Saharan African countries is used in the study.
Findings
The estimation results reveal that external debt vulnerability impacted negatively on economic growth, thus validating the concerns raised about the debt problem in Sub-Saharan Africa. Furthermore, the results revealed that domestic credit and openness of economy played a passive role and were therefore unable to cushion the adverse effect of debt vulnerability. Capital stock, however, stands out as the only variable that played a significant positive role in facilitating economic growth. The results are considered to be highly reliable for short-term forecast of economic growth and formulation of relevant policies.
Originality/value
Over the years, economic analysts and stakeholders have expressed concern about the inadequate ratio of foreign reserves to external debt in developing countries. The effect of this external debt vulnerability on the economy of these countries has yet to be given sufficient attention by researchers. In view of this perceived void, this current study is carried out to determine the economic and policy consequences of the problem.
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Paul Adjei Kwakwa and Solomon Aboagye
The study examines the effect of natural resources (NRs) and the control of corruption, voice and accountability and regulatory quality on carbon emissions in Africa. Aside from…
Abstract
Purpose
The study examines the effect of natural resources (NRs) and the control of corruption, voice and accountability and regulatory quality on carbon emissions in Africa. Aside from their individual effects, the moderation effect of institutional quality is assessed.
Design/methodology/approach
Data from 32 African countries from 2002 to 2021 and the fully modified ordinary least squares (FMOLS) and dynamic ordinary least squares (DOLS) regression methods were used for the investigation.
Findings
In the long term, the NRs effect is sensitive to the estimation technique employed. However, quality regulatory framework, robust corruption control and voice and accountability abate any positive effect of NRs on carbon emissions. Institutional quality can be argued to moderate the CO2-emitting potentials of resource extraction in the selected African countries.
Practical implications
Enhancing regulation quality, enforcing corruption control and empowering citizens towards greater participation in governance and demanding accountability are essential catalyst to effectively mitigate CO2 emissions resulting from NRs.
Originality/value
The moderation effect of control of corruption, voice and accountability and regulatory quality on the NR–carbon emission nexus is examined.
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Kabiru Kamalu and Wan Hakimah Binti Wan Ibrahim
This study examines the effect of digitalization on poverty and income inequality in developing countries. The study answers the question of whether digitalization is a way for…
Abstract
Purpose
This study examines the effect of digitalization on poverty and income inequality in developing countries. The study answers the question of whether digitalization is a way for developing countries to get out of poverty and income inequality.
Design/methodology/approach
The study uses data from 17 developing countries with data from 2005 to 2021. The study employs fully modified ordinary least squares (FMOLS) and dynamic ordinary least squares (DOLS), with an augmented mean group (AMG) for robustness. Digitalization, as the variable of interest, is proxied by the digitalization index (DI), constructed using principal component analysis (PCA). The dependent variables are poverty and income inequality, which are used in different models.
Findings
The evidence indicates that digitalization decreases poverty and income inequality in developing countries. These findings are justified when we use the AMG estimator, but the strength of the coefficients and significance levels are higher in the FMOLS and DOLS estimators. The results of the control variables also show that human development (LHDI), CO2 emissions and foreign direct investment (FDI) have decreasing effects on poverty and income inequality. Thus, digitalization is a good option for developing countries to get out of poverty and income inequality to achieve sustainable development goals (1&10).
Originality/value
This study provides rigorous empirical evidence on the effect of digitalization on poverty and income inequality in developing countries. Unlike the previous studies on developing countries, this study used a DI to proxy digitalization. In addition, the authors use FMOLS and DOLS estimators, with an AMG estimator for robustness, to provide long-run coefficients.
Peer review
The peer review history for this article is available at: https://publons.com/publon/10.1108/IJSE-08-2023-0586
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The studies that explore the impacts of national intellectual capital on informal economy are scant. Moreover, the effect of an external factor such as institutional quality that…
Abstract
Purpose
The studies that explore the impacts of national intellectual capital on informal economy are scant. Moreover, the effect of an external factor such as institutional quality that moderates this relationship has largely been neglected in previous studies. Institutions are considered important pillars to accumulate national intellectual capital and reduce shadow economy. As such, this paper aims to investigate how institutional quality moderates the effects of national intellectual capital on informal economy in 17 Asian countries from 2000 to 2018.
Design/methodology/approach
This paper uses the generalized method of moments techniques, which allow cross-sectional dependence and slope homogeneity in panel data, to examine the moderating role of institutional quality on the relationship between national intellectual capital and informal economy. Various tests are conducted to ensure the robustness of the findings.
Findings
Empirical findings from this paper indicate that an increase in national intellectual capital and institutional quality declines the informal economy. Interestingly, better institutional quality aggravates the negative effects of national intellectual capital on reducing the size of informal economy. The author also finds that enhancing international trade and economic growth results in a decrease in the informal economy in Asian countries.
Practical implications
Empirical findings offer policymakers an indication of the relationships between national intellectual capital, institutional quality and informal economy, pointing out that national intellectual capital and institutional quality should be strengthened to allow Asian countries to limit the informal economy.
Originality/value
This study provides a conceptual model through which the moderating role of institutional quality on the national intellectual capital–informal economy nexus can be recognized. This approach has thus far not been investigated in the existing literature. To the best of the author’s knowledge, this study makes an original contribution to the empirical of national intellectual capital and informal economy nexus and produces new insights into the fields of the moderating effects of institutional quality on this nexus.
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