Economic Policy Uncertainty and Financial Innovation: Is There Any Affiliation?

Jia, Zeng; Mehta, Ahmed Muneeb; Qamruzzaman, Md.; Ali, Majid

doi:10.3389/fpsyg.2021.631834

Cited by 37 publications

(34 citation statements)

References 97 publications

(162 reference statements)

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“…Time-series databases' empirical model assessments persistently seek to detect the research units' order of integration for appropriate econometric model selection (Jia, 2021).…”

Section: Estimation Strategy Unit Root Testmentioning

confidence: 99%

A Symmetry and Asymmetry Investigation of the Nexus Between Environmental Sustainability, Renewable Energy, Energy Innovation, and Trade: Evidence From Environmental Kuznets Curve Hypothesis in Selected MENA Countries

Andriamahery

Qamruzzaman

2022

Front. Energy Res.

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The motivation of the study is to gauge the role of renewable energy consumption (REC), energy innovation (EI), and total trade (TR) on environmental sustainability (ES) in selected MENA (Middle East and North Africa) countries for the period 1980–2018 under the assumption of environmental Kuznets curve (EKC). The study implemented several econometrical tools, including structural break unit root test, Bayer–Hanck combined cointegration test, autoregressive distributed lag (ARDL), nonlinear ARDL, and Granger causality test under error correction term. Variables properties test detected that all the variables are stationary after the first difference but neither exposed to stationary after the second difference. The test statistics of the combined cointegration test documented a long-run association between ES, RE, EI, and TR, which is valid for both countries concerned. Regarding EKC concern, study findings with ARDL and nonlinear ARDL validated the EKC hypothesis for Tunisia and Morocco. Finally, the direction causality test documented unidirectional causality between renewable energy and ES, trade and ES, but the feedback hypothesis holds between EI and ES. We can advocate for specific sectoral environmental reforms in Tunisia and Morocco and suggest continuous environmentally friendly technologies by combining study findings. At the same time, subsidies on nonrenewable energy should be reduced, and green trade policies to help advance sustainable development should be implemented.

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“…Time-series databases' empirical model assessments persistently seek to detect the research units' order of integration for appropriate econometric model selection (Jia, 2021).…”

Section: Estimation Strategy Unit Root Testmentioning

confidence: 99%

A Symmetry and Asymmetry Investigation of the Nexus Between Environmental Sustainability, Renewable Energy, Energy Innovation, and Trade: Evidence From Environmental Kuznets Curve Hypothesis in Selected MENA Countries

Andriamahery

Qamruzzaman

2022

Front. Energy Res.

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“…In recent literature, the role of economic policy uncertainty on macro fundamentals has been extensively assessed (see, for instance, Xu et al, 2021, Jia et al, 2021, Song et al, 2021. Study findings postulated that the importance of EPU considering the aggregated macro performance is immensely important due to both direct and indirect effects had been exposed.…”

Section: Economic Policy Uncertaintymentioning

confidence: 99%

An Asymmetric Investigation of the Nexus Between Economic Policy Uncertainty, Knowledge Spillover, Climate Change, and Green Economy: Evidence From BRIC Nations

Liang

Qamruzzaman

2022

Front. Environ. Sci.

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The motivation of the study is to gauge the impact of economic policy uncertainty (EPU), knowledge spillover (KS), and climate change (CC) on green economy (GE) transition in BRIC nations for the period from 1991 to 2018. The study applied several unit root tests, including DF-GLS and Zivot–Andrew, for ascertaining the stationarity properties of variables. The long-run association between variables was detected by employing ARDL bound test, tBDM test, and Bayer and Hanck combined cointegration test. Furthermore, the asymmetric effects of EPU, KS, and CC on GE were examined by implementing nonlinear ARDL (NARDL), and finally, directional causal effects were evaluated with the Toda–Yamamoto causality test. In addition, the long-run coefficient’s robustness was assessed by applying fully modified OLS, dynamic OLS, and canonical cointegrating regression (CCR). ARDL bound testing confirms the long-run association in the empirical model for all countries with negative statistically significant effects from EPU and CC to the green economy and positive statistically significant impacts from KS to GE. On the other hand, asymmetric assessment established both long- and short-run asymmetry between EPU, KS, CC, and GE. Finally, directional causality establishes feedback hypothesis holds for EPU and GE in Brazil, India, China, KS, and GE in Brazil, Russia, and China. Thus, study findings established that EPU and KS might influence the transition to the green economy in BRIC nations. Thus, for policy formulation targeting green economic development, it is imperative to put extra effort into understanding the role of EPU and knowledge spillover in the economy.

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“…Economic policy uncertainty: The study considered newspaper-based economic policy uncertainty index as a widely proxy for EPU in literature, see Jia, et al [88], Xu, et al [89], Yu, et al [90], and Appiah-Otoo [91]. It is an unpredictable economic environment created by choices made by the government in the areas of regulatory, monetary, and fascial policy management.…”

Section: Empirical Modelmentioning

confidence: 99%

Nexus between Economic Policy Uncertainty and Renewable Energy Consumption in BRIC Nations: The Mediating Role of Foreign Direct Investment and Financial Development

et al. 2021

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In recent literature, the impact of economic policy uncertainty (EPU) on macro aspects have been investigated, but the aspect of energy, precisely renewable energy still to explore. The motivation of the study is to produce fresh evidence regarding the nexus between EPU and renewable energy consumption (REC) with the mediating role of forcing direct investment (FDI) and financial development (FD) in BRIC nations for the period 1997q1–2018q4. The study applied unit root tests following Ng-Perron and Zivot and Andrews for detecting variable’s stationary properties. The long-run cointegration was evaluated by implementing Bayer, Hanck combined the cointegration test, Bound testing approach, and tBDM test. Both linear and non-linear ARDL were implemented to evaluate long-run and short-run shocks, and directional causality was assessed through a non-granger causality test. Furthermore, the study implemented robustness by implementing fully-modified OLS, dynamic OLS, and canonical cointegrating regression (CCR). Unit root test established the variables are stationary after the first difference; moreover, the Bayer and Hanck cointegration test confirmed the long-run association between EPU, FD, FD, and REC in BRIC nations. Accruing to ARDL estimation, adverse effects running from EPU to REC both in the long run and short run. Furthermore, the positive statistically significant linkage revealed for FDI and FD to REC implies that clean energy integration could be augmented with continual inflows of FDI and development of the financial sector. Model estimation with asymmetric assumption, the study documented asymmetric effects running from EPU, FDI, and FD to renewable energy consumption, especially in the long run. Finally, the directional causality revealed unidirectional causality between REC and EPU, whereas the feedback hypothesis was disclosed for FDI and REC] and FD and REC. Study findings postulated that the role of foreign direct investment and financial development is critically significant because technological advancement and capital investment augment clean energy integration through the application of renewable energy.

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Economic Policy Uncertainty and Financial Innovation: Is There Any Affiliation?

Cited by 37 publications

References 97 publications

A Symmetry and Asymmetry Investigation of the Nexus Between Environmental Sustainability, Renewable Energy, Energy Innovation, and Trade: Evidence From Environmental Kuznets Curve Hypothesis in Selected MENA Countries

A Symmetry and Asymmetry Investigation of the Nexus Between Environmental Sustainability, Renewable Energy, Energy Innovation, and Trade: Evidence From Environmental Kuznets Curve Hypothesis in Selected MENA Countries

An Asymmetric Investigation of the Nexus Between Economic Policy Uncertainty, Knowledge Spillover, Climate Change, and Green Economy: Evidence From BRIC Nations

Nexus between Economic Policy Uncertainty and Renewable Energy Consumption in BRIC Nations: The Mediating Role of Foreign Direct Investment and Financial Development

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