Fractional frequency flexible Fourier form (FFFFF) for panel cointegration test

Olayeni, Richard O.; Tiwari, Aviral Kumar; Wohar, Mark E.

doi:10.1080/13504851.2020.1761526

Cited by 32 publications

(21 citation statements)

References 13 publications

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“…A new panel Fourier co‐integration test, following the studies of Emirmahmutoglu and Omay (2014), Olayeni et al (2021), Omay (2015), and Palm et al (2011) which considers both cross‐section dependence and smooth transition breaks they have suggested. In this approach, structural breaks are taken into account with the Fourier method, while cross‐section dependence is taken into account with the bootstrap method.…”

Section: Data Set and Methodologymentioning

confidence: 99%

“…The panel cointegration test used here is actually an improved version of the Engle‐Granger test. Following the study of Olayeni et al (2021), panel Fourier bootstrap cointegration is estimated as follows. First of all (1) Equation () OLS predicted with (

u_{it}

) residues are obtained, (2)

u_{it}

using

u_{it} = ρ_{i} u_{italicit - 1} + ε_{it}

OLS is estimated and

{\overset{truê}{ρ}}_{i}

determines.…”

Section: Data Set and Methodologymentioning

confidence: 99%

“…Critical values are generated using bootstrap simulations. If the Bootstrap critical value is less than the selected critical value H 0 hypothesis is rejected and it is concluded that there is a cointegration relationship (Olayeni et al, 2021).…”

Section: Panel Fourier Co-integration Testmentioning

confidence: 99%

“…In this context, the study follows methods that consider heterogeneity and cross‐sectional dependence under structural breaks using current panel data methods. In the study, unit root test developed by Nazlıoğlu and Karul (2017) and co‐integration tests developed by Olayeni et al (2021) were followed. An important problem for analyzing the asymmetric effects of natural resource rents on financial development is structural breaks.…”

Section: Introductionmentioning

confidence: 99%

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Winner or loser? The asymmetric role of natural resource rents on financial development among resource‐rich countries

Yıldırım

Bostancı

et al. 2022

Sustainable Development

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The resource curse theory has become a paradox that has been discussed for many years in the literature. Because most studies have revealed empirical evidence that resource rents negatively affect financial development although resource wealth provides many advantages. Therefore, studies on whether studies conducted with different methods in different periods can produce results contrary to this theory are continuing. This study aims to test the asymmetric effect of natural resource rents on financial development among resource-rich countries. The study investigated the data of 10 countries those have the highest natural resource rents in the World that selected from World Atlas (2018) for the period 1993-2017. As a result of empirical analysis, this study proved that there was a financial resource curse hypothesis among resource-rich countries. While positive shocks are effecting financial development negatively, negative shocks are found as effecting financial development positively. This study also showed that resource-rich countries are lucky but not a winner in the context of financial development and sustainable development.

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Section: Data Set and Methodologymentioning

confidence: 99%

u_{it}

) residues are obtained, (2)

u_{it}

using

u_{it} = ρ_{i} u_{italicit - 1} + ε_{it}

OLS is estimated and

{\overset{truê}{ρ}}_{i}

determines.…”

Section: Data Set and Methodologymentioning

confidence: 99%

Section: Panel Fourier Co-integration Testmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

See 2 more Smart Citations

Winner or loser? The asymmetric role of natural resource rents on financial development among resource‐rich countries

Yıldırım

Bostancı

et al. 2022

Sustainable Development

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show abstract

“…The suggested test mainly consists of two-stage; at the first stage, structural changes are considered using a Fourier function, and at the second, the threshold panel unit root test is applied. So, by following the studies Christopoulos and Le on-Ledesma 46,47 and Olayeni et al, 51 we first estimate the following model:…”

Section: Methodsmentioning

confidence: 99%

Convergence in per capita carbon footprint and ecological footprint for G7 countries: Evidence from panel Fourier threshold unit root test

Yılancı

Görüş

Solarin

2021

Energy & Environment

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This paper aims to explore the convergence of per capita carbon and ecological footprints in G7 countries during 1961–2016. For this purpose, we propose a new unit root test in the panel setting–the panel Fourier threshold unit root test. This test takes into consideration both multiple smooth structural changes and nonlinearity. According to the literature, the power of the nonlinear unit root tests is reduced in the case of ignoring structural breaks. Therefore, we expect to get more reliable empirical findings by utilizing this methodology. The empirical results of this paper show that these series have nonlinear behaviors for the period 1961–2016. Furthermore, they demonstrate that the absolute convergence hypothesis is valid in G7 countries for both regimes. Thus, governments can conduct common environmental policies, including international climate summits and agreements, instead of national-based policies to mitigate environmental deterioration in their countries.

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The effect of democracy and corruption paradox on economic growth: MINT countries

Tutuncu,

Bayraktar

2024

Econ Change Restruct

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This study examines the impact of democracy and corruption on the economic growth of Mexico, Indonesia, Nigeria, and Turkey over the 1975–2022 period. Utilizing the Fractional Frequency Flexible Fourier Panel Cointegration and Dynamic Ordinary Least Squares coefficient estimator, two models are employed to test hypotheses regarding economic growth. The findings reveal that democracy plays an upgrading role in the economic growth of all MINT countries, while the effect of corruption varies. In Indonesia and Mexico, corruption has a positive impact on growth, reflecting the effect of democracy, whereas Nigeria and Turkey experience a negative impact. The democracy model supports the compatibility hypothesis for all countries, asserting a positive link between democracy and economic growth. However, the corruption model yields divergent results, with Nigeria and Turkey aligning with the “grease in the wheels” hypothesis, implying that corruption can facilitate economic growth by bypassing bureaucratic obstacles, while Indonesia and Mexico support the "sand in the wheels" hypothesis, indicating that corruption hinders economic growth. This highlights the need for governments to strengthen institutions through transparency, accountability, and credibility via robust oversight and governance mechanisms. Therefore, democratic advancement, streamlined bureaucracy, and anti-corruption policies are imperative for sustainable economic growth and welfare.

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Fractional frequency flexible Fourier form (FFFFF) for panel cointegration test

Cited by 32 publications

References 13 publications

Winner or loser? The asymmetric role of natural resource rents on financial development among resource‐rich countries

Winner or loser? The asymmetric role of natural resource rents on financial development among resource‐rich countries

Convergence in per capita carbon footprint and ecological footprint for G7 countries: Evidence from panel Fourier threshold unit root test

The effect of democracy and corruption paradox on economic growth: MINT countries

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