An analysis of causal relationship between economic growth and financial development for Turkey: A MODWT—Granger causality test

Abar, Hayri

doi:10.18559/ebr.2022.3.4

Cited by 2 publications

(2 citation statements)

References 0 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…, 2023; Hatemi-J, 2022; Gorus et al. , 2023; Usman and Bashir, 2022; Aytun and Akin, 2022; Gezer, 2022; Abar, 2022; Juodis et al. , 2021; Dumitrescu and Hurlin, 2012; Kar et al.…”

Section: Methodology and Data Sourcementioning

confidence: 99%

“…This approach's causal inference is valid since it compensates for potential simultaneity bias, omitted variable bias and endogeneity concerns. Five, aside from the Dumitrescu-Hurlin approach, there are other variants of bootstrap causality that account for policy variations across cross-sectional units in panel causality that are also designed within bivariate analysis (Yıldırım et al, 2023;Hatemi-J, 2022;Gorus et al, 2023;Usman and Bashir, 2022;Aytun and Akin, 2022;Gezer, 2022;Abar, 2022;Juodis et al, 2021;Dumitrescu and Hurlin, 2012;Kar et al, 2011;Emirmahmutoglu and Kose, 2011;K onya, 2006). Six, Hatemi-j (2012) introduced the novel idea of asymmetric causality based on bivariate causality principles.…”

Section: Data Decomposition and Model Specificationmentioning

confidence: 99%

See 1 more Smart Citation

Inflation-poverty causal nexus in sub-Saharan African countries: an asymmetric panel causality approach

Olaniyi,

Odhiambo

2024

ITPD

View full text Add to dashboard Cite

PurposeThis study examines the roles of cross-sectional dependence, asymmetric structure and country-to-country policy variations in the inflation-poverty reduction causal nexus in selected sub-Saharan African (SSA) countries from 1981 to 2019.Design/methodology/approachTo account for cross-sectional dependence, heterogeneity and policy variations across countries in the inflation-poverty reduction causal nexus, this study uses robust Hatemi-J data decomposition procedures and a battery of second-generation techniques. These techniques include cross-sectional dependency tests, panel unit root tests, slope homogeneity tests and the Dumitrescu-Hurlin panel Granger non-causality approach.FindingsUnlike existing studies, the panel and country-specific findings exhibit several dimensions of asymmetric causality in the inflation-poverty nexus. Positive inflationary shocks Granger-causes poverty reduction through investment and employment opportunities that benefit the impoverished in SSA. These findings align with country-specific analyses of Botswana, Cameroon, Gabon, Mauritania, South Africa and Togo. Also, a decline in poverty causes inflation to increase in the Congo Republic, Madagascar, Nigeria, Senegal and Togo. All panel and country-specific analyses reveal at least one dimension of asymmetric causality or another.Practical implicationsAll stakeholders and policymakers must pay adequate attention to issues of asymmetric structures, nonlinearities and country-to-country policy variations to address country-specific issues and the socioeconomic problems in the probable causal nexus between the high incidence of extreme poverty and double-digit inflation rates in most SSA countries.Originality/valueStudies on the inflation-poverty nexus are not uncommon in economic literature. Most existing studies focus on inflation’s effect on poverty. Existing studies that examine the inflation-poverty causal relationship covertly assume no asymmetric structure and nonlinearity. Also, the issues of cross-sectional dependence and heterogeneity are unexplored in the causal link in existing studies. All panel studies covertly impose homogeneous policies on countries in the causality. This study relaxes this supposition by allowing policies to vary across countries in the panel framework. Thus, this study makes three-dimensional contributions to increasing understanding of the inflation-poverty nexus.

show abstract

“…, 2023; Hatemi-J, 2022; Gorus et al. , 2023; Usman and Bashir, 2022; Aytun and Akin, 2022; Gezer, 2022; Abar, 2022; Juodis et al. , 2021; Dumitrescu and Hurlin, 2012; Kar et al.…”

Section: Methodology and Data Sourcementioning

confidence: 99%