Assessing the asymmetric effects of capital and money markets on economic growth in China

Azimi, Mohammad Naim

doi:10.1016/j.heliyon.2022.e08794

Cited by 11 publications

(11 citation statements)

References 81 publications

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“…However, the symmetric response conflicts with recent evidence of asymmetry in Africa (Chen et al, 2020; Zungu, 2022). Though nonlinear like Azimi (2022), our findings diverge from Ibrahim and Alagidede (2020) who uncovered asymmetric impacts in Ghana.…”

Section: Resultscontrasting

confidence: 95%

The Interaction Between Financial Development and Economic Growth: A Novel Application of Transfer Entropy and Nonlinear Approach in Algeria

Al khatib,

Alshaib,

Kanaan

2023

SAGE Open

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This study examines the complex interaction between Financial Development (FD) and Economic Growth (EG) in Algeria from 1980 to 2020 using nonlinear modeling techniques. We apply the Non-Linear Causality test with Transfer Entropy, a novel method in this literature, to confirm the nonlinear causality from FD to EG. We also use the Nonlinear Autoregressive Distributed Lag (NARDL) model and the Cumulative Dynamic Multiplier (CDM) to establish the long-run equilibrium and the short-run dynamic relationship between FD and EG. The NARDL results support the Transfer Entropy findings and show that FD has a symmetric impact on EG in both the short and long term. Positive and negative shocks on FD affect EG similarly and the imbalance is corrected in about 6 years. This study provides useful information for policymakers and stakeholders to design policies that promote (EG) and development in Algeria by enhancing FD and mitigating shocks. JEL Codes: C45, C32, E44, O16, O53

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Section: Resultscontrasting

confidence: 95%

The Interaction Between Financial Development and Economic Growth: A Novel Application of Transfer Entropy and Nonlinear Approach in Algeria

Al khatib,

Alshaib,

Kanaan

2023

SAGE Open

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“…Meanwhile, in the short-term model, variables such as bonds and FDI are more reliable to reduce unemployment. This is understandable considering that when the funds needed by producers to increase production capacity cannot be obtained through credit (either because the bank no longer has funds to distribute or because the credit interest rate is already too high), then the short-term solution that can be taken by producers is by issuing bonds (both bonds with a tenor of 5 years or more) (Azimi, 2022).…”

Section: Resultsmentioning

confidence: 99%

Business Capital Funding Through the Financial Sector to Reduce Unemployment in Indonesia

Kusuma

Muthmainnah

2022

JEP

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This research aimed to study the role of the financial sector and foreign investment in increasing domestic production output. Where the increase in production output will increase the factors of production, one of which is labor. The data used in this study are annual time series data from the 2004 to 2021, and this study employed the Error Correction Model (ECM) approach to estimate the short-term effect and OLS to determine the long-term effect. The results showed that funding growth through the financial sector to the industrial sector in Indonesia has grown consistently since 2004 which has continued to encourage improved economic performance after the 1998 crisis. There is also a relationship between financial variables and fiscal policy on unemployment in both the short and long term. There are several ways to deal with unemployment both in the long term and in the short term, such as when an economic slowdown occurs. By increasing FDI, bank credit and funding in the the capital market, the private sector can continue to expand its business. This private expansion phase will increase the output of goods or services. With the increase in production output, employment will continue to be positive.

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“…If the F-statistics are greater than the upper bound I(1) critical value of a desired level, the null is rejected, while it fails to reject the null if the F-statistics are less than the lower bound I(0) critical value. In case the F-statistics fall between the lower bound and the upper bound critical values, the test is inconclusive about the null hypothesis [ 61 ]. The use of ARDL bound test has various advantages over other common cointegration methods.…”

Section: Methodsmentioning

confidence: 99%

Assessing the asymmetric war-growth nexus: A case of Afghanistan

2022

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This study explores the war-growth nexus in Afghanistan, a country where war-torn acts inform resource allocation. Employing the asymmetric ARDL, dynamic multipliers, and asymmetric causality techniques, the initial results confirm the existence of a long-run asymmetric nexus amid predictors. The asymmetric ARDL results indicate that a positive asymmetric shock from the per capita cost of war reduces per capita GDP—that is, economic growth—while a negative asymmetric shock from the per capita cost of war increases growth in the short and long run. Moreover, the findings reveal that per capita capital investment, per capita energy consumption, per capita household consumption, per capita remittance, per capita foreign direct investment, population growth, and inflation rate have significantly asymmetric effects on growth, highlighting non-monotonic impacts in scale and magnitude. The results of the asymmetric causality technique by bootstrap confirm that there is an asymmetric bidirectional causality between growth, per capita cost of war, per capita household consumption, per capita capital investment, and per capita foreign direct investment, while expanding only unidirectional causality with per capita remittance, population growth, and inflation rate. Based on the findings, the study concludes by offering relevant policy recommendations.

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Assessing the asymmetric effects of capital and money markets on economic growth in China

Cited by 11 publications

References 81 publications

The Interaction Between Financial Development and Economic Growth: A Novel Application of Transfer Entropy and Nonlinear Approach in Algeria

The Interaction Between Financial Development and Economic Growth: A Novel Application of Transfer Entropy and Nonlinear Approach in Algeria

Business Capital Funding Through the Financial Sector to Reduce Unemployment in Indonesia

Assessing the asymmetric war-growth nexus: A case of Afghanistan

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