This study examines the mediating role of institutions in the remittance-
growth relationship in Nigeria. We use autoregressive distributed lag (ARDL)
estimation to establish the interaction of the variables of interest. The
short-run results reveal that remittance inflows positively influence
growth, probably due to the immediate injection of financial resources that
an increase in remittances brings about. This effect is reinforced by
improvements in regulatory quality. In contrast the long-run results reveal
that, over time, remittance inflows are negatively related to growth
probably due to adverse macroeconomic consequences, to a decrease in work
incentives, and a decline in the motivation for technological innovation.
However, the adoption of improved institutional environment is found to
offset the negative long-run effect of remittances on growth, at least to
some extent. Therefore, remittance receiving countries should improve the
design and enforcement of laws, regulatory quality, and control over
corruption, so that they can make best use of remittance inflows and other
sources of external financing needed to augment domestic productivity and
growth.
The unwavering adverse effects of global warming continue to threaten the sustainability of the ecosystem and peaceful human coexistence. Efforts to resolve this ecological matter promulgate the interest in green policies, which the extant studies are yet to explore fully. Consequently, this study provides the first empirical evidence on the roles of green policies vectoring, green energy, green finance, and green innovation amidst eco-digitalization and urbanization on environmental sustainability captured by CO2 emissions, ecological footprint, and PM2.5 air pollutions in BRICS countries from 1995 to 2019. The study relies on the STIRPAT framework alongside second-generation estimators in providing the empirical evidence. Findings indicate that green energy, green finance, green innovation, and eco-digitalization promote environmental sustainability by reducing CO2 emissions, ecological footprint, and PM2.5 air pollutions. Conversely, urbanization and affluence deter environmental sustainability due to their inducing effects the highlighted pollutants. The distributional analysis based on quantile regression and country-level estimation based on fully modified ordinary least squares technique accentuates the empirical regularity of the main findings. Besides, the Granger causality reveals the presence of bidirectional and unidirectional causality relationships in the estimated model. Based on the findings, feasible policies that enhance sustainability of the BRICS environment are formulated.
The study investigates the effect of fiscal policy on the inflation rate in a panel of 44 sub-Saharan African (SSA) countries over the period 2003–2020 using a non-linear system generalized method of moments (system GMM) and the dynamic panel threshold estimation techniques. The results show that the recent increase in inflation rate has a fiscal nature and that monetary policy alone may not provide an effective response. Specifically, the results indicate that a positive shock to fiscal policy (captured by public debts) has a positive and statistically significant effect on inflation, while a negative shock to public debt has a statistically non-significant impact on the inflation rate. Also, money supply exerted a positive and insignificant impact on inflation, indicating that the current inflation rate in the region may not be induced by money supply. However, the joint effect of public debts and money supply shows that public debts aid the effect of money supply on the inflation rate, albeit, not in the proportion predicted by the quantity theory of money. Further, the results also found a public debt threshold point of 60.59% of GDP. This implies the current inflationary pressure may be rooted in fiscal policy and that further accumulation of public debts beyond the benchmark established in the study would worsen the inflationary pressure in SSA. Importantly, the study found that for fiscal policy to spur growth and reduce inflationary pressure in SSA, the inflation rate should be managed and brought within a single-digit framework of 4%. The research and policy implications are discussed.
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