From an idealistic viewpoint, the existence of the tourism industry in a country/region is a blessing because of its anticipated sustainable economic benefits. To turn this idealistic state into a realistic one, institutions need to play a pivotal role in optimizing the desired incentives. The present study examines the asymmetric role of institutional quality in stimulating tourism inflows (receipts and arrivals) in selected Asia Pacific countries involved in tourism. The previous literature has established that improving institutional quality attracts tourism inflows to a destination. However, the literature fails to identify the specific point (threshold level) above (below) which the relationship turns positive (negative). To the best of our knowledge, this is the first study that estimates the asymmetries in the nexus of institutions and tourism inflows, using robust nonlinear autoregressive distributed lag approach. Our results show that the tourism inflow in Asian Pacific countries responds asymmetrically to any changes in institutional quality, and there is a single threshold of 7.52 points, where the impact of institutional quality reverses. We conclude that our findings are robust to the alternative measures of tourism inflows. The study offers useful policy inputs for devising short and long-run policies for the betterment of the institutional framework in the region by understanding the asymmetric impact of institutional quality on tourism inflow.
Agricultural sector is significant for Sub-Saharan African countries and is highly exposed and sensitive to climate change. This study aims to investigate the overall long-run impacts of temperature and precipitation on agricultural growth in 32 Sub-Saharan African countries. As proposed by Chudik and Pesaran, our estimations are based on augmented autoregressive distributed lag(ARDL) modelling and panel estimators with multifactor error structures. We estimate the “dynamic common correlated long-run effects (DCCE)” through the cross-sectionally augmented distributed lag (CS-DL) approach as well as through the cross-sectionally augmented autoregressive distributed lag (CS-ARDL). For robustness check, we also consider the cross-sectionally augmented error correction method (CS-ECM) and the common dynamic process augmented mean group (AMG). The study suggests that rising temperatures have significantly developed a negative long-term relationship with the agricultural growth in Sub-Saharan Africa. At the same time, the long-run effect of precipitation is less important and not statistically significant in most estimations. According to the CS-DL approach, the negative impact of a 1°Crise in temperature could be as high as a 4.2 to 4.7 percentage point decrease in the agricultural growth rate. The results indicate that the warming climate has considerably damaged the agrarian activities in Sub-Saharan Africa, necessitating adaptive climate measures to avoid any food scarcity or economic stagnation in agricultural driven African countries.
The contribution of structural transformation and urban development is considered crucial for the long run socio-economic growth but has adversely affected environmental sustainability over last few decades. This empirical research makes an innovative and holistic addition to the prior literature by examining the non-linear effect of economic growth and urban dynamics on environmental degradation in a comprehensive panel data of 66 countries and across respective income groups for the period 1990–2016. For empirical analysis, the robust econometric methods of two-way fixed effects (2W-FE), panel fully modified ordinary least squares (PFMOLS), and Driscoll-Kraay regressions have been applied to account for all econometric issues. The study unveils the bell-shaped effect of economic growth on environmental degradation which confirms the Environmental Kuznets Curve (EKC) and structural change hypotheses. The results of this study signifies the inverted U influence of urbanization and urban agglomerations on CO2 emissions and hence supports Ecological Modernization Theory (EMT). Our empirical findings also unfold the heterogeneous non-linear effects of urban dynamics across various income categories of selected economies. By employing the heterogeneous Dumitrescu and Hurlin (D-H) (Granger non-causality tests), the findings of this study confirm the prior estimations and establish significant unilateral and bilateral causal nexus of structural change and urban dynamics with environmental degradation. By verifying the existence of Environmental Kuznets Curve phenomenon in Low and Lower Middle Income (LLMI) and Upper Middle Income (UMI) group countries, this study necessitates for the policy makers to adopt the eco-friendly industrial and energy policies for the long run social, economic and environmental sustainability.
scite is a Brooklyn-based organization that helps researchers better discover and understand research articles through Smart Citations–citations that display the context of the citation and describe whether the article provides supporting or contrasting evidence. scite is used by students and researchers from around the world and is funded in part by the National Science Foundation and the National Institute on Drug Abuse of the National Institutes of Health.
hi@scite.ai
10624 S. Eastern Ave., Ste. A-614
Henderson, NV 89052, USA
Copyright © 2024 scite LLC. All rights reserved.
Made with 💙 for researchers
Part of the Research Solutions Family.