FDI Inflows-Economic Globalization Nexus in ASEAN Countries: The Panel Bootstrap Causality Test Based on Wavelet Decomposition

Görüş, Muhammed Şehid; Yılancı, Veli; Kongkuah, Maxwell

doi:10.1007/s10690-022-09377-5

Cited by 7 publications

(3 citation statements)

References 48 publications

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“…Five , aside from the Dumitrescu-Hurlin approach, there are other variants of bootstrap causality that account for policy variations across cross-sectional units in panel causality that are also designed within bivariate analysis (Yıldırım et al. , 2023; Hatemi-J, 2022; Gorus et al. , 2023; Usman and Bashir, 2022; Aytun and Akin, 2022; Gezer, 2022; Abar, 2022; Juodis et al.…”

Section: Methodology and Data Sourcementioning

confidence: 99%

“…This approach's causal inference is valid since it compensates for potential simultaneity bias, omitted variable bias and endogeneity concerns. Five, aside from the Dumitrescu-Hurlin approach, there are other variants of bootstrap causality that account for policy variations across cross-sectional units in panel causality that are also designed within bivariate analysis (Yıldırım et al, 2023;Hatemi-J, 2022;Gorus et al, 2023;Usman and Bashir, 2022;Aytun and Akin, 2022;Gezer, 2022;Abar, 2022;Juodis et al, 2021;Dumitrescu and Hurlin, 2012;Kar et al, 2011;Emirmahmutoglu and Kose, 2011;K onya, 2006). Six, Hatemi-j (2012) introduced the novel idea of asymmetric causality based on bivariate causality principles.…”

Section: Data Decomposition and Model Specificationmentioning

confidence: 99%

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Inflation-poverty causal nexus in sub-Saharan African countries: an asymmetric panel causality approach

Olaniyi,

Odhiambo

2024

ITPD

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PurposeThis study examines the roles of cross-sectional dependence, asymmetric structure and country-to-country policy variations in the inflation-poverty reduction causal nexus in selected sub-Saharan African (SSA) countries from 1981 to 2019.Design/methodology/approachTo account for cross-sectional dependence, heterogeneity and policy variations across countries in the inflation-poverty reduction causal nexus, this study uses robust Hatemi-J data decomposition procedures and a battery of second-generation techniques. These techniques include cross-sectional dependency tests, panel unit root tests, slope homogeneity tests and the Dumitrescu-Hurlin panel Granger non-causality approach.FindingsUnlike existing studies, the panel and country-specific findings exhibit several dimensions of asymmetric causality in the inflation-poverty nexus. Positive inflationary shocks Granger-causes poverty reduction through investment and employment opportunities that benefit the impoverished in SSA. These findings align with country-specific analyses of Botswana, Cameroon, Gabon, Mauritania, South Africa and Togo. Also, a decline in poverty causes inflation to increase in the Congo Republic, Madagascar, Nigeria, Senegal and Togo. All panel and country-specific analyses reveal at least one dimension of asymmetric causality or another.Practical implicationsAll stakeholders and policymakers must pay adequate attention to issues of asymmetric structures, nonlinearities and country-to-country policy variations to address country-specific issues and the socioeconomic problems in the probable causal nexus between the high incidence of extreme poverty and double-digit inflation rates in most SSA countries.Originality/valueStudies on the inflation-poverty nexus are not uncommon in economic literature. Most existing studies focus on inflation’s effect on poverty. Existing studies that examine the inflation-poverty causal relationship covertly assume no asymmetric structure and nonlinearity. Also, the issues of cross-sectional dependence and heterogeneity are unexplored in the causal link in existing studies. All panel studies covertly impose homogeneous policies on countries in the causality. This study relaxes this supposition by allowing policies to vary across countries in the panel framework. Thus, this study makes three-dimensional contributions to increasing understanding of the inflation-poverty nexus.

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Section: Methodology and Data Sourcementioning

confidence: 99%

Section: Data Decomposition and Model Specificationmentioning

confidence: 99%

Inflation-poverty causal nexus in sub-Saharan African countries: an asymmetric panel causality approach

Olaniyi,

Odhiambo

2024

ITPD

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“…Wavelet analysis has been employed often in economic research during the past few years as a result of its appealing characteristics (for instance, Pata, et al, 2022;Pata et.al., 2023;Gorus et al, 2023). Wavelets include information from the time and frequency domains, offering wavelet analysis to study the dynamic interaction between series at various time scales.…”

Section: Wavelet Analysismentioning

confidence: 99%

Türkiye’de Enflasyon İstikrarsızlığı Çevre Kirliliğine Neden Olur mu? Fourier-Wavelet Nedensellik Testinden Kanıtlar

DEMİRTAŞ

2023

EPF Journal

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The Turkish economy has faced many macroeconomic problems in terms of GDP stability, inflation stability, growth rate, and exchange rate. This situation has become even more noticeable in recent times, especially with the negative effects of the Covid 19 epidemic and the Russia-Ukraine war. Thus, inflation in Turkiye has increased and has a more unstable outlook. However, environmental problems have also increased. In light of this information, the aim of the study is to examine the causality relationship between inflation instability and environmental pollution for the period 1990-2021 by considering growth, energy consumption, and financial development as control variables in Turkiye. For this purpose, firstly, the series was subjected to wavelet transform. Afterwards, the transformed series were analyzed with the Fourier TY and Fractional Fourier TY causality tests as short, medium, and long term. Findings from the Fourier causality test show that inflation instability promotes environmental pollution in the short, medium, and long term. According to the Fractional Fourier causality test, which I used to test whether the shocks are permanent, there is persistence from inflation instability to environmental pollution only in the medium term. This study is the first to examine the subject in the case of Türkiye.

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Net‐Zero Transition Pathways in Belt and Road Economies: Insights From Threshold Effects and Heterogeneous Analysis

Kamil,

Saeed,

Essel

et al. 2024

Environmental Quality Mgmt

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Given the pressing need for economies to mitigate climate change and champion carbon neutrality, this study investigates the threshold effects of financial development and foreign direct investment (FDI) on carbon dioxide (CO₂) emissions in Sub‐Saharan Africa (SSA) within the Belt and Road Initiative (BRI) bloc, taking into account the moderating role of the regulatory environment. Drawing on the environmental Kuznets curve and the pollution haven hypothesis, the study utilizes the dynamic generalized method of moments (GMM) modeling, proposed by Arellano and Bover, to analyze panel data from 37 SSA countries spanning 1990–2022. The findings reveal that financial development in the banking, financial, and private sectors, along with FDI outflows, is associated with a reduction in CO₂ emissions. Conversely, FDI inflows are linked to increased CO₂ emissions. A curvilinear relationship is observed, where initial increases in financial development and FDI correlate with higher emissions, which decline beyond a certain threshold. Stronger regulations enhance the positive impact of financial development on reducing CO₂ emissions. Finally, the findings show a significant heterogeneous effect across the SSA regional blocs. These findings underscore the critical need for implementing stringent environmental regulations and promoting sustainable financial practices to mitigate negative environmental impact. This research provides both theoretical and practical insights into fostering a carbon neutrality agenda and advancing Sustainable Development Goal 13.

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FDI Inflows-Economic Globalization Nexus in ASEAN Countries: The Panel Bootstrap Causality Test Based on Wavelet Decomposition

Cited by 7 publications

References 48 publications

Inflation-poverty causal nexus in sub-Saharan African countries: an asymmetric panel causality approach

Inflation-poverty causal nexus in sub-Saharan African countries: an asymmetric panel causality approach

Türkiye’de Enflasyon İstikrarsızlığı Çevre Kirliliğine Neden Olur mu? Fourier-Wavelet Nedensellik Testinden Kanıtlar

Net‐Zero Transition Pathways in Belt and Road Economies: Insights From Threshold Effects and Heterogeneous Analysis

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