The present study assesses the effect of public-private partnerships in energy and financial deve... more The present study assesses the effect of public-private partnerships in energy and financial development on Brazil's ecological footprint and also takes into account the role of renewable energy and economic growth using data spanning from 1983 to 2017. The study utilized several techniques including autoregressive distributive lag (ARDL) and dynamic ordinary least square (DOLS) to examine the relationship between ecological footprint and the determinants, while the gradual shift causality test was utilized to capture the causal linkage between the series in the presence of a single structural break. The outcomes of the Maki co-integration test revealed evidence of a long-run association among the variables of interest. Furthermore, the results of the ARDL and DOLS tests revealed that economic growth and public and private investment in energy increase environmental degradation, while it is mitigated by both renewable energy and financial development. Moreover, the gradual shift causality test revealed a bidirectional causal linkage between ecological footprint and economic growth. The present study recommends the establishment of a forum that will foster public and private partnerships to enhance communication, which will promote collaboration on new initiatives involving green technological innovations.
The present study aims to explore the long-run and causal effect of financial development and ren... more The present study aims to explore the long-run and causal effect of financial development and renewable energy consumption on environmental sustainability while controlling technological innovation and economic growth within the global framework. In line with the aim of the study, the fully modified OLS (FMOLS), dynamic OLS (DOLS), canonical cointegrating regression (CCR), Bayer and Hanck cointegration, and frequency-domain causality tests are employed. Empirical evidence confirms the existence of a long-run linkage among the variables. The present study also finds that in the long run, global financial development and global renewable energy consumption have a long-run significant positive effect on environmental sustainability, while economic growth increases carbon emission flaring around the world. Within the global framework, the study, therefore, recommends that in order to increase environmental quality, global policy-makers should further consider the roles of renewable energy and financial development by implementing reform energy policies in both developed and developing countries.
Utilizing Nigeria as a case study, the investigators explored the linkages between FDI inflows an... more Utilizing Nigeria as a case study, the investigators explored the linkages between FDI inflows and some selected macroeconomic indicators (exports, gross capital formation, trade openness, inflation, and economic growth) utilizing yearly data spanning between 1981 and 2018. The study used ARDL technique to capture the linkages between FDI inflows and its determining indicators. Furthermore, the wavelet coherence techniques was used. The main novelty of wavelet coherence is that it can obtain information on dynamic correlation and/or causality between economic variables at different frequencies and different time periods. Additionally, the FMOLS and the DOLS are employed as a robustness check to the ARDL long-run estimation. The findings from the ARDL long-run estimate reveal that exports and trade openness exert positive impact on FDI inflows. The findings from the FMOLS and DOLS backed ARDL results. Furthermore, the results of the wavelet coherence based causality and wavelet correlation techniques further provide supportive evidence to the ARDL technique. To the authors' knowledge, no previous studies have used the wavelet coherence and wavelet correlation techniques to explore these dynamics. Based on these findings, policy directions were initiated.
The main aim of this paper is to explore the role of globalization on ecological footprint in Tur... more The main aim of this paper is to explore the role of globalization on ecological footprint in Turkey while controlling energy consumption, economic growth, and trade openness. To achieve this objective, we employ dual adjustment approach. The main novelty of the dual adjustment approach is that the method offers another path to the cointegration analysis by relaxing the implicit assumption of the singular adjustment in cointegration analysis. The findings clearly reveal that (i) in the long run, globalization impacts ecological footprint positively and (ii) trade openness reduces ecological footprint in the short run, while ecological footprint is negatively affected by GDP growth in both the short and the long run. In terms of policy implications, this study suggests that in order to improve the environmental quality, Turkey should adopt such policies that encourage energy consumers to shift toward renewable energy. Moreover, the government should take necessary steps to diversify the overall energy mix toward renewable energy.
This study aimed at investigating the symmetric and asymmetric effects of financial development, ... more This study aimed at investigating the symmetric and asymmetric effects of financial development, foreign direct investment (FDI), energy consumption, and economic growth on carbon emissions (CO 2) towards environmental sustainability in Nigeria. A yearly data spanning from 1981 to 2016 was utilized with linear ARDL and non-linear ARDL techniques. The findings from the estimations show that FDI, and energy consumption have a long-run linear relationship with CO 2 in Nigeria. In addition, FDI has a linear relationship with CO 2 in the short-run. Interestingly, the positive and negative shocks in FDI have a significant long-run relationship with CO 2 , while only positive shock in financial development has a long-run relationship with CO 2. The asymmetric effect in the short-run from the estimation shows that the positive and negative shocks in both financial development and FDI have a short-run relationship with CO 2. Thus, this study argues for the integration of nationwide social awareness programs in the environmental policies and the implementation of financial credit policy that will address environmental degradation in Nigeria. Keywords Environmental sustainability · Carbon emission · Financial development · Foreign direct investment · Symmetric and asymmetric effect · Nigeria JEL Classification B22 · C01 · C54 · O13 · P18
This study aims to reexamine long-run and causal effects of trade openness, energy usage, gross c... more This study aims to reexamine long-run and causal effects of trade openness, energy usage, gross capital formation, and real growth on CO 2 emissions in Mexico utilizing recent econometric techniques. The study utilizes yearly data spanning between 1971 and 2016. No prior study has used the wavelet coherence approach to collect information on the correlation and/or causal relation between these economic variables at different frequencies and time frames. Thus, this study proposes to fill the gap in the literature. The motives of the study are to address the questions: (a) Is the EKC hypothesis valid for Mexico? (b) Is there a long-run and causal relationship between CO 2 emissions and its determinants? (c) How are the indicators related at different frequencies and various periods? To capture long-run effects, the study utilized ARDL, FMOLS, and DOLS estimators, while wavelet coherence technique is utilized to explore causal effects among the variables. The empirical findings confirm that (a) EKC hypothesis is valid for Mexico; and (b) gross capital formation, energy usage, and economic growth impact CO 2 emissions positively. The wavelet coherence technique revealed (a) bidirectional causality between economic growth and CO 2 emissions; (b) unidirectional causality from CO 2 emissions to energy usage; and (c) one-way causality running from CO 2 emissions to gross capital formation. Based on these findings, recommendations were suggested.
This study aims to explore the long-run and causal effects of energy consumption, trade openness ... more This study aims to explore the long-run and causal effects of energy consumption, trade openness and economic growth on CO 2 emissions in Indonesia. It employs newly developed econometric techniques using yearly data between 1980 and 2016. To capture long-run effects, the study uses the ARDL estimator, while the wavelet coherence technique is employed to investigate correlations and causal effects among the variables. The main novelty of the wavelet coherence technique is that it can obtain information on dynamic correlation and/or causality between economic variables at different frequencies and in different time periods. The findings from the ARDL long-run and short-run estimates reveal the validity of the environmental Kuznets curve (EKC) hypothesis in Indonesia. Furthermore, both economic growth and energy usage positively trigger CO 2 emissions, while trade openness enhances the environmental quality. The wavelet coherence approach also provides supportive evidence for the ARDL long-run estimate.
This study aims to critically analyze the dynamic aid-growth interaction in Nigeria by revisiting... more This study aims to critically analyze the dynamic aid-growth interaction in Nigeria by revisiting the two-gap framework. The study utilized various unit root tests to verify the integration order of indicators utilized. The variables are integrated at a mixed level i.e. 1(0) and 1(1) thus, ARDL techniques were utilized to investigate the short and long-run interactions. Furthermore, a robustness check was carried out by utilizing FMOLS and DOLS. Findings of the FMOLS, and DOLS comply with the ARDL estimate. In the long run; (i) foreign aid, gross domestic saving and gross capital formation have positive and significant relationship with GDP growth while trade has an insignificant association with GDP growth; (ii) In the short run, all the independent variables have positive and significant link with GDP growth with the exemption of trade; (iii) the FMOLS and DOLS affirms the findings of the ARDL long-run estimate; and (iv) since trade has an insignificant relationship with GDP growth, this study refute the two-gap theory in the case of Nigeria. Recommendations are put forward based on the findings. Öz: Bu çalışma, Nijerya'daki yardımlar ve ekonomik büyüme arasındaki etkileşimi ikili açık yaklaşımı ile analiz etmeyi amaçlamaktadır. Çalışmada birim kök testleri bütünleşme sıralamsının belirlenmesi amacı ile uygulanmıştır. Yapılan testler, bütünleşmenin I(0) ve I(1) gibi farklı sıralamlarda gerçekleştiğini ortaya koymuştur. Bu nedenle kısa ve uzun dönem etkileşimi ortaya koymak için ARDL modelinden yararlanılmıştır. Doğruluğundan emin olmak için FMOLS ve DOLS analizleri uygulanmış ve elde edilen sonuçların ARDL bulgularını desteklediği görülmüştür. Uzun dönemde; (i) dış yardımlar, tasarruflar ve sermaye birikiminin GSYİH büyüme oranı ile pozitif ve anlamlı bir ilişkiye sahip olduğu ancak ticaretin analmlı bir ilişkiye sahip olmadığı; (ii) kısa dönemde ise ticaret hariç, tüm bağımsız değişkenler ile GSYİH arasında anlamlı ve pozitif bir ilişki olduğu; (iii) FMOLS ve DOLS sonuçları uzun dönem ARDL tahminlerini doğruladığı ve (iv) ticaret ve GSYİH arasında anlamlı bir
International Journal of Renewable Energy Development, 2021
The study aims to explore the causal linkage between CO2 emissions, economic growth and energy co... more The study aims to explore the causal linkage between CO2 emissions, economic growth and energy consumption in Thailand utilizing the wavelet coherence approach, conventional Granger and the Toda-Yamamoto causality techniques. In this study, time-series data spanning the period between 1971 and 2018 were used. No prior study has used the wavelet coherence approach to collect information on the association and causal interrelationship among these economic variables at different frequencies and timeframes in Thailand. The study objectives are structured to answer the following question: Does economic growth and energy consumption lead to CO2 emissions in Thailand. The findings revealed that: (a) Changes in economic growth led to changes in CO2 emissions in Thailand at different frequencies (different scales) between 1971 and 2018. (b) A bidirectional causal relationship between CO2 emissions and energy consumption. (c) A positive correlation between CO2 emissions and energy usage in the short and long-run between 1971 and 2018. (d) A positive correlation between GDP growth and CO2 emissions in the short and long-run between 1971 and 2018. The study suggested that Thailand should initiate stronger policies towards enhancing the efficiency of energy and energy-usage programs to minimize unnecessary energy waste.
This study aims to reexamine the interconnection between economic growth, foreign aid, trade, gro... more This study aims to reexamine the interconnection between economic growth, foreign aid, trade, gross fixed capital formation, and inflation rate in one model for the case of Nigeria, which has not yet been analyzed utilizing the new econometric techniques, employing time series data covering the years between 1980 and 2018. No previous research has employed a wavelet coherence technique to gather information on the dynamic connection and/or causality between these economic indicators at dissimilar frequencies and various time frames. The main objectives are to address the questions: (a) Is there long-run relationship between the indicators under considera-tion? (b) What are the main determinants of economic growth in the long run? (c) How are the indicators related at dissimilar frequencies and various time frames? The empirical findings confirm that (a) there is a long-run relationship between the indicators under consideration; (b) in the long run, economic growth is influenced significantly by foreign aid, trade openness, gross fixed capital formation, and inflation rate; (c) the outcomes of the wavelet coherence technique give evidence to support the long-run estimations of this study; and (d) the outcomes of wavelet coherence are supported by the Toda-Yamamoto causality test results.
Int. Journal of Renewable Energy Development (IJRED), 2020
CO2 emission is one the major contributor to climate change that the top CO2 emitting countries a... more CO2 emission is one the major contributor to climate change that the top CO2 emitting countries are always trying to mitigate. In an attempt to fill the gap in energy and environmental literature, this study explores the interaction between economic growth, energy usage, trade and urbanization on CO2 emission for MINT economies using the time coverage from 1980 to 2018, providing new perspectives into the literature by employing panel data analysis. Aiming to create robust outcomes, this paper deployed both conventional and modern econometric techniques. The panel co-integration test revealed evidence of the co-integration between CO2 and its determinants in the MINT economies. In order to explore the linkages between CO2 and its determinants, the ARDL PMG model was utilized in MINT economies. Findings based on the ARDL PMG reveals; (i) positive interconnection between CO2 emissions and energy usage; (ii) no significant link was found between CO2 and economic growth; (iii) urbanization influence CO2 positively while a negative link was found between CO2 and trade. Furthermore, the Dumitrescu-Hurlin Causality test revealed; (i) uni-directional causality from CO2 to urbanization; (ii) GDP growth cause CO2 while CO2 causes energy usage. Based on these findings, recommendations were put forward
Asia Journal of Economics and Empirical Research, 2020
The study aim is to examine the impact of process innovation, product innovation and market innov... more The study aim is to examine the impact of process innovation, product innovation and market innovation on entrepreneurial orientation using Osun state as a case study. The study based on the CDM theoretical framework. Questionnaires were distributed to SMEs in Osun state. The 350 questionnaires were distributed to the respondents; however, only 201 were filled properly and returned. The multiple regression was deployed to investigate this relationship. The study findings shows; (i) there are positive relationship between product innovation and entrepreneurial orientation; (ii) there is positive relationship between process innovation and entrepreneurial orientation; and (iii) there is positive relationship between market innovation and entrepreneurial orientation.
This paper examined the co-movement and causality between oil price and inflation using monthly d... more This paper examined the co-movement and causality between oil price and inflation using monthly data spanning between January 2007 and March 2020. The study employed the wavelet coherence techniques which are a new technique in economics and finance to verify the co-movement and causality simultaneously. Additionally, Granger and Toda Yamamoto's causality tests were deployed as a robustness check for the wavelet coherence techniques. Findings from the wavelet coherence technique reveal; (a) positive co-movement between the inflation and oil price between 2014M2 and 2017M1 at scale 4-8; (b) there is evidence of causality from oil price to inflation. Wavelet coherence technique revealed unidirectional causality running from oil price to inflation which is also confirmed by the Granger and Toda Yamamoto causality tests. To the author's understanding, no studies concerning oil price and inflation nexus in the case of Nigeria have deployed this technique. Based on these findings, recommendations were put forward.
Asian Journal of Economics, Business and Accounting, 2020
It is observed that exports play a significant role in economic expansion. Thus, this study tends... more It is observed that exports play a significant role in economic expansion. Thus, this study tends to shed more light on the export and economic growth interaction in Nigeria using data between 1981 and 2018. Due to inconclusiveness in the literature, this study employs a more superior econometric technique to ascertain this link. Econometrics techniques utilized include ARDL, Toda Yamamoto causality, variance decomposition and wavelet coherence techniques. Findings from the study show; (i) there is cointegration among the variables utilized; (ii) there is evidence of synchronization hypothesis; (iii) gross capital formation, gross domestic savings, and export have a positive and significant impact on economic growth with foreign direct investment having an adverse effect; (iv); unidirectional causality was found running from gross capital formation, gross domestic savings and foreign direct investment to economic growth; (v) the wavelet coherence approach provide a supportive evidence for the ARDL and causality tests; and (vi) economic growth can predict a significant variation in export in the tenth year. Various recommendations were suggested based on these findings.
This paper tends to establish the short and long run dynamics between stock market and GDP growth... more This paper tends to establish the short and long run dynamics between stock market and GDP growth in Nigeria utilizing yearly data spanning between 1989 and 2017. The paper deployed the ARDL, FMOLS, DOLS, Toda Yamamoto causality and the variance decomposition techniques to verify these dynamics. The ARDL Bounds test reveals evidence of cointegration in the long run among the variables. The ARDL estimate reveals market capitalization of listed companies affects economic growth positively in the short and long run. Also, stocks market turnover ratio positively impacts economic growth while stock market total value positively affects GDP in the short run. The result of the Toda Yamamoto causality revealed one-way causality from Stocks market turnover ratio to economic growth and from Stock market total value traded to economic growth. The variance decomposition revealed the strength of causality among the variables for a relatively longer period. Based on these findings, recommendations were put forward.
Asian Journal of Economics and Empirical Research, 7(2), 126-135. , 2020
This study explores the connection between the exchange rate and oil price within the framework o... more This study explores the connection between the exchange rate and oil price within the framework of time and frequency utilizing monthly data between January 2007 and March 2020. The study deployed the wavelet tools to investigate this relationship. Furthermore, Granger and Toda Yamamoto causality tests were employed as a robustness check for the wavelet coherence techniques. Findings from the wavelet power spectrum shows; (a) a significant vulnerability in the exchange rate between Yamamoto causality tests reveal a bidirectional interaction between oil price and exchange rate. The variance decomposition shows that as the months dwindle, 40.2% and 40.5% of discrepancy in the exchange rate can be explained by oil price in the twenty-third and twenty-fourth month respectively. This signifies that oil price is a good predictor of the exchange rate in the long term. Also, the variance decomposition and causality tests provide a piece of supportive evidence for the wavelet coherence technique. Key recommendations are suggested based on these findings.
The impact of Official Development Assistance (ODA) which is geared towards economic growth of th... more The impact of Official Development Assistance (ODA) which is geared towards economic growth of the 5 poorest economies of the world (Niger, Congo, Burundi, Malawi, and the Central African Republic) was analysed. Employing a well-structured growth model and yearly data from 1986-2015, we examine this growing nexus using a robust model specification, hence testing both the long and short run relationship between economic growth and ODA. The ARDL long-run relationship and an Error Correction Model (ECM) was used to test for the relationship alongside the rate at which the variables returns back to the long-run equilibrium following a shock in the short run. There exist a significant positive association for Niger as well as Malawi in the long run, while other countries displayed no long-run relationship. Interestingly, the relationship in the short run was found only in Congo. The derived conclusion from this paper is that the government have to re-evaluate the sectoral allocation of foreign Aid received to ensure higher efficiency and a prospective economic growth and development of these countries. Öz: Bu çalışmada Resmi Kalkınma Yardımının (RKY), dünyanın en düşük gelirli 5 ekonomisinin (Nijer, Kongo, Burundi, Malavi ve Orta Afrika Cumhuriyeti) ekonomik büyüme üzerindeki etkisi analiz edildi. Yapılandırılmış bir büyüme modeli ve 1986-2015 yıllık verileri kullanarak büyüyen ilişki sağlam bir model spesifikasyonu ile incelenecektir. Bu nedenle çalışma hem ekonomik büyüme hem de RKY arasındaki uzun ve kısa vadedeki ilişkiyi test etmektedir. ARDL uzun süreli ilişkiyi ölçmede ve aynı zamanda Hata Düzeltme Modeli (ECM) ile kısa vadede bir şokun ardından değişkenlerin uzun dönemli dengeye geri döndüğü oranı test etmek için kullanılmıştır. Uzun vadede Nijer ve Malavi için önemli bir pozitif ilişki bulunmuştur, diğer ülkelerde uzun süreli ilişki görülmemiştir. İlginç bir şekilde, kısa vadede ilişki sadece Kongo'da bulundu. Çalışmadan elde edilen sonuca göre, hükümetler daha yüksek verimlilik ve ileriye dönük ekonomik büyüme ve kalkınmayı sağlamak için yabancı yardımların sektörel dağılımını yeniden değerlendirmelidirler.
This paper focuses on the impact of Foreign Aid on Economic Growth for the 5 poorest economies of... more This paper focuses on the impact of Foreign Aid on Economic Growth for the 5 poorest economies of the world (Niger, Congo, Burundi, Malawi, and the Central African Republic). Employing endogenous growth model and annual time series data from 1986 – 2015, we examine this growing nexus using a robust model specification, hence testing both the long run and short-run relationship between Foreign Aid and economic growth. The ARDL Bound test of Co-Integration (long-run relationship) and an Error Correction Model is used to test for short-run relationship alongside the speed of adjustment back to the long-run equilibrium after a short run shock. The result shows a positive and significant long-run relationship for Niger and Malawi, while other countries displayed no long-run relationship. Interestingly, the short-run relationship was found only in Congo. The derived conclusion from this paper is that the government has to re-evaluate the sectorial allocation of foreign Aid received to ensure higher efficiency and a positive effect on the economic growth of these countries. Keywords: Foreign Aids; Economic Growth; ARDL Model; ECM.
The present study assesses the effect of public-private partnerships in energy and financial deve... more The present study assesses the effect of public-private partnerships in energy and financial development on Brazil's ecological footprint and also takes into account the role of renewable energy and economic growth using data spanning from 1983 to 2017. The study utilized several techniques including autoregressive distributive lag (ARDL) and dynamic ordinary least square (DOLS) to examine the relationship between ecological footprint and the determinants, while the gradual shift causality test was utilized to capture the causal linkage between the series in the presence of a single structural break. The outcomes of the Maki co-integration test revealed evidence of a long-run association among the variables of interest. Furthermore, the results of the ARDL and DOLS tests revealed that economic growth and public and private investment in energy increase environmental degradation, while it is mitigated by both renewable energy and financial development. Moreover, the gradual shift causality test revealed a bidirectional causal linkage between ecological footprint and economic growth. The present study recommends the establishment of a forum that will foster public and private partnerships to enhance communication, which will promote collaboration on new initiatives involving green technological innovations.
The present study aims to explore the long-run and causal effect of financial development and ren... more The present study aims to explore the long-run and causal effect of financial development and renewable energy consumption on environmental sustainability while controlling technological innovation and economic growth within the global framework. In line with the aim of the study, the fully modified OLS (FMOLS), dynamic OLS (DOLS), canonical cointegrating regression (CCR), Bayer and Hanck cointegration, and frequency-domain causality tests are employed. Empirical evidence confirms the existence of a long-run linkage among the variables. The present study also finds that in the long run, global financial development and global renewable energy consumption have a long-run significant positive effect on environmental sustainability, while economic growth increases carbon emission flaring around the world. Within the global framework, the study, therefore, recommends that in order to increase environmental quality, global policy-makers should further consider the roles of renewable energy and financial development by implementing reform energy policies in both developed and developing countries.
Utilizing Nigeria as a case study, the investigators explored the linkages between FDI inflows an... more Utilizing Nigeria as a case study, the investigators explored the linkages between FDI inflows and some selected macroeconomic indicators (exports, gross capital formation, trade openness, inflation, and economic growth) utilizing yearly data spanning between 1981 and 2018. The study used ARDL technique to capture the linkages between FDI inflows and its determining indicators. Furthermore, the wavelet coherence techniques was used. The main novelty of wavelet coherence is that it can obtain information on dynamic correlation and/or causality between economic variables at different frequencies and different time periods. Additionally, the FMOLS and the DOLS are employed as a robustness check to the ARDL long-run estimation. The findings from the ARDL long-run estimate reveal that exports and trade openness exert positive impact on FDI inflows. The findings from the FMOLS and DOLS backed ARDL results. Furthermore, the results of the wavelet coherence based causality and wavelet correlation techniques further provide supportive evidence to the ARDL technique. To the authors' knowledge, no previous studies have used the wavelet coherence and wavelet correlation techniques to explore these dynamics. Based on these findings, policy directions were initiated.
The main aim of this paper is to explore the role of globalization on ecological footprint in Tur... more The main aim of this paper is to explore the role of globalization on ecological footprint in Turkey while controlling energy consumption, economic growth, and trade openness. To achieve this objective, we employ dual adjustment approach. The main novelty of the dual adjustment approach is that the method offers another path to the cointegration analysis by relaxing the implicit assumption of the singular adjustment in cointegration analysis. The findings clearly reveal that (i) in the long run, globalization impacts ecological footprint positively and (ii) trade openness reduces ecological footprint in the short run, while ecological footprint is negatively affected by GDP growth in both the short and the long run. In terms of policy implications, this study suggests that in order to improve the environmental quality, Turkey should adopt such policies that encourage energy consumers to shift toward renewable energy. Moreover, the government should take necessary steps to diversify the overall energy mix toward renewable energy.
This study aimed at investigating the symmetric and asymmetric effects of financial development, ... more This study aimed at investigating the symmetric and asymmetric effects of financial development, foreign direct investment (FDI), energy consumption, and economic growth on carbon emissions (CO 2) towards environmental sustainability in Nigeria. A yearly data spanning from 1981 to 2016 was utilized with linear ARDL and non-linear ARDL techniques. The findings from the estimations show that FDI, and energy consumption have a long-run linear relationship with CO 2 in Nigeria. In addition, FDI has a linear relationship with CO 2 in the short-run. Interestingly, the positive and negative shocks in FDI have a significant long-run relationship with CO 2 , while only positive shock in financial development has a long-run relationship with CO 2. The asymmetric effect in the short-run from the estimation shows that the positive and negative shocks in both financial development and FDI have a short-run relationship with CO 2. Thus, this study argues for the integration of nationwide social awareness programs in the environmental policies and the implementation of financial credit policy that will address environmental degradation in Nigeria. Keywords Environmental sustainability · Carbon emission · Financial development · Foreign direct investment · Symmetric and asymmetric effect · Nigeria JEL Classification B22 · C01 · C54 · O13 · P18
This study aims to reexamine long-run and causal effects of trade openness, energy usage, gross c... more This study aims to reexamine long-run and causal effects of trade openness, energy usage, gross capital formation, and real growth on CO 2 emissions in Mexico utilizing recent econometric techniques. The study utilizes yearly data spanning between 1971 and 2016. No prior study has used the wavelet coherence approach to collect information on the correlation and/or causal relation between these economic variables at different frequencies and time frames. Thus, this study proposes to fill the gap in the literature. The motives of the study are to address the questions: (a) Is the EKC hypothesis valid for Mexico? (b) Is there a long-run and causal relationship between CO 2 emissions and its determinants? (c) How are the indicators related at different frequencies and various periods? To capture long-run effects, the study utilized ARDL, FMOLS, and DOLS estimators, while wavelet coherence technique is utilized to explore causal effects among the variables. The empirical findings confirm that (a) EKC hypothesis is valid for Mexico; and (b) gross capital formation, energy usage, and economic growth impact CO 2 emissions positively. The wavelet coherence technique revealed (a) bidirectional causality between economic growth and CO 2 emissions; (b) unidirectional causality from CO 2 emissions to energy usage; and (c) one-way causality running from CO 2 emissions to gross capital formation. Based on these findings, recommendations were suggested.
This study aims to explore the long-run and causal effects of energy consumption, trade openness ... more This study aims to explore the long-run and causal effects of energy consumption, trade openness and economic growth on CO 2 emissions in Indonesia. It employs newly developed econometric techniques using yearly data between 1980 and 2016. To capture long-run effects, the study uses the ARDL estimator, while the wavelet coherence technique is employed to investigate correlations and causal effects among the variables. The main novelty of the wavelet coherence technique is that it can obtain information on dynamic correlation and/or causality between economic variables at different frequencies and in different time periods. The findings from the ARDL long-run and short-run estimates reveal the validity of the environmental Kuznets curve (EKC) hypothesis in Indonesia. Furthermore, both economic growth and energy usage positively trigger CO 2 emissions, while trade openness enhances the environmental quality. The wavelet coherence approach also provides supportive evidence for the ARDL long-run estimate.
This study aims to critically analyze the dynamic aid-growth interaction in Nigeria by revisiting... more This study aims to critically analyze the dynamic aid-growth interaction in Nigeria by revisiting the two-gap framework. The study utilized various unit root tests to verify the integration order of indicators utilized. The variables are integrated at a mixed level i.e. 1(0) and 1(1) thus, ARDL techniques were utilized to investigate the short and long-run interactions. Furthermore, a robustness check was carried out by utilizing FMOLS and DOLS. Findings of the FMOLS, and DOLS comply with the ARDL estimate. In the long run; (i) foreign aid, gross domestic saving and gross capital formation have positive and significant relationship with GDP growth while trade has an insignificant association with GDP growth; (ii) In the short run, all the independent variables have positive and significant link with GDP growth with the exemption of trade; (iii) the FMOLS and DOLS affirms the findings of the ARDL long-run estimate; and (iv) since trade has an insignificant relationship with GDP growth, this study refute the two-gap theory in the case of Nigeria. Recommendations are put forward based on the findings. Öz: Bu çalışma, Nijerya'daki yardımlar ve ekonomik büyüme arasındaki etkileşimi ikili açık yaklaşımı ile analiz etmeyi amaçlamaktadır. Çalışmada birim kök testleri bütünleşme sıralamsının belirlenmesi amacı ile uygulanmıştır. Yapılan testler, bütünleşmenin I(0) ve I(1) gibi farklı sıralamlarda gerçekleştiğini ortaya koymuştur. Bu nedenle kısa ve uzun dönem etkileşimi ortaya koymak için ARDL modelinden yararlanılmıştır. Doğruluğundan emin olmak için FMOLS ve DOLS analizleri uygulanmış ve elde edilen sonuçların ARDL bulgularını desteklediği görülmüştür. Uzun dönemde; (i) dış yardımlar, tasarruflar ve sermaye birikiminin GSYİH büyüme oranı ile pozitif ve anlamlı bir ilişkiye sahip olduğu ancak ticaretin analmlı bir ilişkiye sahip olmadığı; (ii) kısa dönemde ise ticaret hariç, tüm bağımsız değişkenler ile GSYİH arasında anlamlı ve pozitif bir ilişki olduğu; (iii) FMOLS ve DOLS sonuçları uzun dönem ARDL tahminlerini doğruladığı ve (iv) ticaret ve GSYİH arasında anlamlı bir
International Journal of Renewable Energy Development, 2021
The study aims to explore the causal linkage between CO2 emissions, economic growth and energy co... more The study aims to explore the causal linkage between CO2 emissions, economic growth and energy consumption in Thailand utilizing the wavelet coherence approach, conventional Granger and the Toda-Yamamoto causality techniques. In this study, time-series data spanning the period between 1971 and 2018 were used. No prior study has used the wavelet coherence approach to collect information on the association and causal interrelationship among these economic variables at different frequencies and timeframes in Thailand. The study objectives are structured to answer the following question: Does economic growth and energy consumption lead to CO2 emissions in Thailand. The findings revealed that: (a) Changes in economic growth led to changes in CO2 emissions in Thailand at different frequencies (different scales) between 1971 and 2018. (b) A bidirectional causal relationship between CO2 emissions and energy consumption. (c) A positive correlation between CO2 emissions and energy usage in the short and long-run between 1971 and 2018. (d) A positive correlation between GDP growth and CO2 emissions in the short and long-run between 1971 and 2018. The study suggested that Thailand should initiate stronger policies towards enhancing the efficiency of energy and energy-usage programs to minimize unnecessary energy waste.
This study aims to reexamine the interconnection between economic growth, foreign aid, trade, gro... more This study aims to reexamine the interconnection between economic growth, foreign aid, trade, gross fixed capital formation, and inflation rate in one model for the case of Nigeria, which has not yet been analyzed utilizing the new econometric techniques, employing time series data covering the years between 1980 and 2018. No previous research has employed a wavelet coherence technique to gather information on the dynamic connection and/or causality between these economic indicators at dissimilar frequencies and various time frames. The main objectives are to address the questions: (a) Is there long-run relationship between the indicators under considera-tion? (b) What are the main determinants of economic growth in the long run? (c) How are the indicators related at dissimilar frequencies and various time frames? The empirical findings confirm that (a) there is a long-run relationship between the indicators under consideration; (b) in the long run, economic growth is influenced significantly by foreign aid, trade openness, gross fixed capital formation, and inflation rate; (c) the outcomes of the wavelet coherence technique give evidence to support the long-run estimations of this study; and (d) the outcomes of wavelet coherence are supported by the Toda-Yamamoto causality test results.
Int. Journal of Renewable Energy Development (IJRED), 2020
CO2 emission is one the major contributor to climate change that the top CO2 emitting countries a... more CO2 emission is one the major contributor to climate change that the top CO2 emitting countries are always trying to mitigate. In an attempt to fill the gap in energy and environmental literature, this study explores the interaction between economic growth, energy usage, trade and urbanization on CO2 emission for MINT economies using the time coverage from 1980 to 2018, providing new perspectives into the literature by employing panel data analysis. Aiming to create robust outcomes, this paper deployed both conventional and modern econometric techniques. The panel co-integration test revealed evidence of the co-integration between CO2 and its determinants in the MINT economies. In order to explore the linkages between CO2 and its determinants, the ARDL PMG model was utilized in MINT economies. Findings based on the ARDL PMG reveals; (i) positive interconnection between CO2 emissions and energy usage; (ii) no significant link was found between CO2 and economic growth; (iii) urbanization influence CO2 positively while a negative link was found between CO2 and trade. Furthermore, the Dumitrescu-Hurlin Causality test revealed; (i) uni-directional causality from CO2 to urbanization; (ii) GDP growth cause CO2 while CO2 causes energy usage. Based on these findings, recommendations were put forward
Asia Journal of Economics and Empirical Research, 2020
The study aim is to examine the impact of process innovation, product innovation and market innov... more The study aim is to examine the impact of process innovation, product innovation and market innovation on entrepreneurial orientation using Osun state as a case study. The study based on the CDM theoretical framework. Questionnaires were distributed to SMEs in Osun state. The 350 questionnaires were distributed to the respondents; however, only 201 were filled properly and returned. The multiple regression was deployed to investigate this relationship. The study findings shows; (i) there are positive relationship between product innovation and entrepreneurial orientation; (ii) there is positive relationship between process innovation and entrepreneurial orientation; and (iii) there is positive relationship between market innovation and entrepreneurial orientation.
This paper examined the co-movement and causality between oil price and inflation using monthly d... more This paper examined the co-movement and causality between oil price and inflation using monthly data spanning between January 2007 and March 2020. The study employed the wavelet coherence techniques which are a new technique in economics and finance to verify the co-movement and causality simultaneously. Additionally, Granger and Toda Yamamoto's causality tests were deployed as a robustness check for the wavelet coherence techniques. Findings from the wavelet coherence technique reveal; (a) positive co-movement between the inflation and oil price between 2014M2 and 2017M1 at scale 4-8; (b) there is evidence of causality from oil price to inflation. Wavelet coherence technique revealed unidirectional causality running from oil price to inflation which is also confirmed by the Granger and Toda Yamamoto causality tests. To the author's understanding, no studies concerning oil price and inflation nexus in the case of Nigeria have deployed this technique. Based on these findings, recommendations were put forward.
Asian Journal of Economics, Business and Accounting, 2020
It is observed that exports play a significant role in economic expansion. Thus, this study tends... more It is observed that exports play a significant role in economic expansion. Thus, this study tends to shed more light on the export and economic growth interaction in Nigeria using data between 1981 and 2018. Due to inconclusiveness in the literature, this study employs a more superior econometric technique to ascertain this link. Econometrics techniques utilized include ARDL, Toda Yamamoto causality, variance decomposition and wavelet coherence techniques. Findings from the study show; (i) there is cointegration among the variables utilized; (ii) there is evidence of synchronization hypothesis; (iii) gross capital formation, gross domestic savings, and export have a positive and significant impact on economic growth with foreign direct investment having an adverse effect; (iv); unidirectional causality was found running from gross capital formation, gross domestic savings and foreign direct investment to economic growth; (v) the wavelet coherence approach provide a supportive evidence for the ARDL and causality tests; and (vi) economic growth can predict a significant variation in export in the tenth year. Various recommendations were suggested based on these findings.
This paper tends to establish the short and long run dynamics between stock market and GDP growth... more This paper tends to establish the short and long run dynamics between stock market and GDP growth in Nigeria utilizing yearly data spanning between 1989 and 2017. The paper deployed the ARDL, FMOLS, DOLS, Toda Yamamoto causality and the variance decomposition techniques to verify these dynamics. The ARDL Bounds test reveals evidence of cointegration in the long run among the variables. The ARDL estimate reveals market capitalization of listed companies affects economic growth positively in the short and long run. Also, stocks market turnover ratio positively impacts economic growth while stock market total value positively affects GDP in the short run. The result of the Toda Yamamoto causality revealed one-way causality from Stocks market turnover ratio to economic growth and from Stock market total value traded to economic growth. The variance decomposition revealed the strength of causality among the variables for a relatively longer period. Based on these findings, recommendations were put forward.
Asian Journal of Economics and Empirical Research, 7(2), 126-135. , 2020
This study explores the connection between the exchange rate and oil price within the framework o... more This study explores the connection between the exchange rate and oil price within the framework of time and frequency utilizing monthly data between January 2007 and March 2020. The study deployed the wavelet tools to investigate this relationship. Furthermore, Granger and Toda Yamamoto causality tests were employed as a robustness check for the wavelet coherence techniques. Findings from the wavelet power spectrum shows; (a) a significant vulnerability in the exchange rate between Yamamoto causality tests reveal a bidirectional interaction between oil price and exchange rate. The variance decomposition shows that as the months dwindle, 40.2% and 40.5% of discrepancy in the exchange rate can be explained by oil price in the twenty-third and twenty-fourth month respectively. This signifies that oil price is a good predictor of the exchange rate in the long term. Also, the variance decomposition and causality tests provide a piece of supportive evidence for the wavelet coherence technique. Key recommendations are suggested based on these findings.
The impact of Official Development Assistance (ODA) which is geared towards economic growth of th... more The impact of Official Development Assistance (ODA) which is geared towards economic growth of the 5 poorest economies of the world (Niger, Congo, Burundi, Malawi, and the Central African Republic) was analysed. Employing a well-structured growth model and yearly data from 1986-2015, we examine this growing nexus using a robust model specification, hence testing both the long and short run relationship between economic growth and ODA. The ARDL long-run relationship and an Error Correction Model (ECM) was used to test for the relationship alongside the rate at which the variables returns back to the long-run equilibrium following a shock in the short run. There exist a significant positive association for Niger as well as Malawi in the long run, while other countries displayed no long-run relationship. Interestingly, the relationship in the short run was found only in Congo. The derived conclusion from this paper is that the government have to re-evaluate the sectoral allocation of foreign Aid received to ensure higher efficiency and a prospective economic growth and development of these countries. Öz: Bu çalışmada Resmi Kalkınma Yardımının (RKY), dünyanın en düşük gelirli 5 ekonomisinin (Nijer, Kongo, Burundi, Malavi ve Orta Afrika Cumhuriyeti) ekonomik büyüme üzerindeki etkisi analiz edildi. Yapılandırılmış bir büyüme modeli ve 1986-2015 yıllık verileri kullanarak büyüyen ilişki sağlam bir model spesifikasyonu ile incelenecektir. Bu nedenle çalışma hem ekonomik büyüme hem de RKY arasındaki uzun ve kısa vadedeki ilişkiyi test etmektedir. ARDL uzun süreli ilişkiyi ölçmede ve aynı zamanda Hata Düzeltme Modeli (ECM) ile kısa vadede bir şokun ardından değişkenlerin uzun dönemli dengeye geri döndüğü oranı test etmek için kullanılmıştır. Uzun vadede Nijer ve Malavi için önemli bir pozitif ilişki bulunmuştur, diğer ülkelerde uzun süreli ilişki görülmemiştir. İlginç bir şekilde, kısa vadede ilişki sadece Kongo'da bulundu. Çalışmadan elde edilen sonuca göre, hükümetler daha yüksek verimlilik ve ileriye dönük ekonomik büyüme ve kalkınmayı sağlamak için yabancı yardımların sektörel dağılımını yeniden değerlendirmelidirler.
This paper focuses on the impact of Foreign Aid on Economic Growth for the 5 poorest economies of... more This paper focuses on the impact of Foreign Aid on Economic Growth for the 5 poorest economies of the world (Niger, Congo, Burundi, Malawi, and the Central African Republic). Employing endogenous growth model and annual time series data from 1986 – 2015, we examine this growing nexus using a robust model specification, hence testing both the long run and short-run relationship between Foreign Aid and economic growth. The ARDL Bound test of Co-Integration (long-run relationship) and an Error Correction Model is used to test for short-run relationship alongside the speed of adjustment back to the long-run equilibrium after a short run shock. The result shows a positive and significant long-run relationship for Niger and Malawi, while other countries displayed no long-run relationship. Interestingly, the short-run relationship was found only in Congo. The derived conclusion from this paper is that the government has to re-evaluate the sectorial allocation of foreign Aid received to ensure higher efficiency and a positive effect on the economic growth of these countries. Keywords: Foreign Aids; Economic Growth; ARDL Model; ECM.
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Papers by Tomiwa Adebayo
Keywords: Foreign Aids; Economic Growth; ARDL Model; ECM.
Keywords: Foreign Aids; Economic Growth; ARDL Model; ECM.