Re-examining the effect of financial markets and institutions on economic growth: evidence from the OECD countries

Does Government Ideology Affect the Relationship Between Government Spending and Economic Growth?

“…The findings support previous partisan theories that suggest higher growth is associated with left‐wing governments, which generally favour fiscal and expansionary policies (Alesina et al., 1997; Sakamoto, 2008; Potrafke, 2012). On the other hand, the results contrast recent empirical studies that find right‐wing governments to be more effective at stimulating growth (Purewal & Haini, 2021).…”

“…This study contributes to the literature on the partisan and political business cycle theories, as previous studies overlooked the moderating role of government ideology on the relationship between government spending and economic growth. While a number of previous studies have found that left‐wing governments are associated with higher growth, the evidence of government ideology on growth is far from conclusive (Sakamoto, 2008; Osterloh, 2012; Potrafke, 2012; Purewal & Haini, 2021). Thus, this study provides new empirical evidence on whether the impact of government spending is conditional on government ideology.…”

Does information and communication technology impede environmental degradation? fresh insights from non-parametric approaches

“…One line of research found that ICT has a positive influence on environmental contamination due to the increased consumption of energy as a result of the development of a wide range of ICT-linked products and their widespread use (Asongu, 2018;Avom et al, 2020;Lee and Brahmasrene, 2014;Raheem et al, 2020). Other studies have examined the positive influence of ICT on environmental quality as a result of the greater usage of ICTs, which improves the efficiency of the energy sector and thus reduces CO 2 and other GHG emissions (Chatti, 2021;Irawan, 2014;Liu et al, 2021;Purewal and Haini, 2021;Usman et al, 2021;Wang and Xu, 2021). As a result, we can infer that ICT products have an impact on CO 2 emissions; nevertheless, it is not yet known whether the path of this effect is positive or negative.…”

Contribution of the Optimization of Financial Structure to the Real Economy: Evidence from China’s Financial System Using TVP-VAR Model

“…Karwowski [46] believes that market-based financial systems are more financialized, and financialization plays out differently across economic sectors and countries. A large number of studies have shown that there are national differences in the relationship between finance structure and economic growth [12,[47][48][49], so it is necessary to conduct a special study on China's situation. There are other scholars who examine the role of different financial systems at different economic stages.…”

“…At present, studies begin to describe the dynamic relationship between finance and economy, using the dynamic panel model [10,48], ARDL bounds testing approach [53], cross-country growth regression [47], CoVaR approach [24], and TVPSS [54], etc. In view of this, this paper summarizes the research results and methods used by scholars, and then further analyzes and characterizes the time-varying characteristics of the dynamic influence of finance structure on the scale and structure of real economy.…”