Identifying structural breaks and growth regimes in middle eastern economies

The objective of this study is to investigate the sources of output growth and their convergence in the Middle East and North African countries over the period 1970–2017. Towards this end, the study employs Levin et al. (2002, Journal of Econometrics, vol. 108, pp. 1–24), Fisher-type (Choi, 2001, Journal of International Money and Finance, vol. 20, pp. 249–272) and Im et al. (2003, Journal of Econometrics, vol. 115, pp. 53–74) panel unit root tests and Pedroni (2004, Econometric Theory, vol. 20, pp. 597–625), Kao (1999, Journal of Econometrics, vol. 90, pp. 1–44) and Johansen–Fisher cointegration tests. After estimating the production function using random effects estimator to obtain the share of physical capital in output, we employed standard growth accounting approach to measure and decompose growth of total output into contributions from growth in physical capital, labour, human capital and total factor productivity (TFP). Further, the study discusses the existence of stochastic and deterministic convergence of real output per worker and its sources (physical capital per worker, human capital and TFP). The statistical results of the article can be summarized as follows: The contribution of physical capital to output growth is found to be positive and higher than the contribution of labour, whereas the contribution of TFP was negative across the region with the exception of Egypt, Morocco, Tunisia and Turkey. However, when the contribution of human capital is netted out, the contribution of TFP becomes negative in all the countries except for Tunisia. In addition, the study found no clear evidence of deterministic convergence in output per worker (but stochastic convergence), human capital and factor productivity. However, the statistical results provide overwhelming evidence for stochastic and deterministic convergence in physical capital per worker. JEL Classification: O4, O40, O47.

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“…4.See Malik et al (2020b) for volatility and structural breaks in growth performance of MENA countries.…”

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confidence: 99%

Analysis of Growth Accounting and Convergence in MENA Countries: Panel Cointegration Approach

Malik

Masood

2020

South Asian Journal of Macroeconomics and Public Finance

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“…Thus, this study collects air freight as the proxy variable of transportation. Within the field of social science including economics (28)(29)(30)(31)(32)(33), environment (14,(34)(35)(36)(37), and transportation (38)(39)(40)(41)(42) categories, the indicators perform the attributes of smooth and sharp shifts in the trend of time series. Smooth and sharp breaks are important and considered in previous studies since any effects of shocks on the indicators would affect the results of a model (43).…”

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confidence: 99%

Transportation, Environmental Degradation, and Health Dynamics in the United States and China: Evidence From Bootstrap ARDL With a Fourier Function

Lin

2022

Front. Public Health

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Transportation and environmental degradation, with indirect and direct effects, play a significant role in determining the health of a nation's citizens. This study uses bootstrap ARDL with a Fourier function to examine transportation, environmental degradation, and health dynamics in the United States and China. In the long run, the results support the cointegration relationship between transportation, environmental degradation, and health in both countries. The results show the contingency of the causality where a negative impact of transportation on environmental degradation exists in the United States while a positive impact exists in China. The effect of environmental degradation on health is negative in the United States while a positive effect exists in China. Regarding the causal direction between the variables of interest, the implications provide policymakers in developing strategy and policy for sustainable development.

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Financial development, oil resources, and environmental degradation in pandemic recession: to go down in flames

Anser

Khan

Zaman

et al. 2021

Environ Sci Pollut Res

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The novel coronavirus disease-2019 (COVID-19) is a deadly disease that increases global healthcare sufferings. Further, it affects the financial and natural resource market simultaneously, as both are considered complementary goods. The volatility in the oil prices deteriorates the global financial market to substantiate the “financial resource (oil) curse” hypothesis primarily filled with earlier studies. In contrast, this study moved forward and extended the given relationship during the COVID-19 pandemic in a panel of 81 different countries. The study’s main objective is to examine the volatility in the domestic credit provided to the private sector due to oil shocks and the COVID-19 pandemic across countries. The study is essential to assess the healthcare vulnerability in the COVID-19 pandemic, leading to the damage of financial stability, causing deterioration in the oil rents to affect the global sustainability agenda. The study employed statistical techniques to get sound inferences of the parameter estimates, including robust least squares regression, seemingly unrelated regression, and innovation accounting matrix to get a variable estimate at the level and inter-temporal framework. The results confirmed the U-shaped relationship between oil rents and financial development during the COVID-19 pandemic. Thus, it verifies the “financial resource (oil) curse” hypothesis at the initial stage of the COVID-19 pandemic. Later down, it supports the capital market when economies are resuming their economic activities and maintaining the SOPs to restrain coronavirus at a global scale. The qualitative assessment confirmed the negative effect of financial development and oil shocks on environmental quality during the pandemic crisis. The innovation accounting matrix shows that the COVID-19 pandemic will primarily be the main factor that intervenes in the relationship between oil rents and financial development, which proceed towards the “resource curse” hypothesis during the following years’ time period. Therefore, the need for long-term economic policies is highly desirable to support the financial and resource market under the suggested guidelines of restraining coronavirus worldwide.

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Identifying structural breaks and growth regimes in middle eastern economies

Cited by 4 publications

References 33 publications

Analysis of Growth Accounting and Convergence in MENA Countries: Panel Cointegration Approach

Analysis of Growth Accounting and Convergence in MENA Countries: Panel Cointegration Approach

Transportation, Environmental Degradation, and Health Dynamics in the United States and China: Evidence From Bootstrap ARDL With a Fourier Function

Financial development, oil resources, and environmental degradation in pandemic recession: to go down in flames

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