Asymmetrical effects of real exchange rate on the money demand in Saudi Arabia: A non-linear ARDL approach

Mahmood, Haider; Alkhateeb, Tarek Tawfik Yousef

doi:10.1371/journal.pone.0207598

Cited by 26 publications

(39 citation statements)

References 26 publications

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“…Therefore, testing of the EKC hypothesis for Saudi Arabia is missing altogether on the aggregated level. Further, insignificant symmetrical effects of FMD and energy consumption on the CO 2 emissions reported by Bekhet et al [15] give direction to test these effects in the asymmetry settings as testing symmetrical effects in the presence of significant asymmetries may be claimed for misspecification of the model [18]. Therefore, our objectives are to investigate the asymmetrical effects of FMD and energy consumption on CO 2 emissions and to test the EKC hypothesis at the aggregate level in Saudi Arabia.…”

Section: Introductionmentioning

confidence: 95%

“…Mahmood and Alkhateeb [18] claimed that the results of the symmetrical investigation, in the presence of significant asymmetry in the model, may become a reason of misspecification of the model and may as a result generate biased estimates. Although the asymmetrical effects of FMD and income on Pakistani CO 2 emissions have been tested in [34] by ignoring the testing of the EKC hypothesis, this current study extends the scope of the model by analyzing asymmetrical effects of FMD and energy consumption along with testing the EKC hypothesis which is missing by [34].…”

Section: Literature Reviewmentioning

confidence: 99%

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Financial Market Development and Pollution Nexus in Saudi Arabia: Asymmetrical Analysis

Mahmood

Alrasheed

Furqan³

2018

Energies

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The study is aimed to scrutinize the presence of Environmental Kuznets Curve (EKC) hypothesis in Saudi Arabia by analyzing a period of 1971-2014. Asymmetrical impacts of Financial Market Development (FMD) and energy consumption per capita have also been tested on CO 2 emissions per capita. The estimates buoyed the long and short-run relationships in the hypothesized model, and EKC is found to be true in terms of the relationship between income and pollution. Asymmetrical effects of FMD in the long run and asymmetrical effects of energy consumption per capita in the long and short run are presented on the CO 2 emissions per capita. A decreasing FMD is found responsible for environmental degradation, and decreasing energy consumption per capita is found helpful in controlling CO 2 emissions. The tested effect of the financial crisis is found insignificant on CO 2 emissions.

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Section: Introductionmentioning

confidence: 95%

Section: Literature Reviewmentioning

confidence: 99%

Financial Market Development and Pollution Nexus in Saudi Arabia: Asymmetrical Analysis

Mahmood

Alrasheed

Furqan³

2018

Energies

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“…Hence, the asymmetrical effects of trade openness can also be expected on CO 2 emissions. Assuming symmetrical effects in the presence of asymmetrical effects of any variable can be considered as an omitted variable bias in the model [36]. Currently, the estimation of asymmetrical effects of trade openness on CO 2 emissions is missing in the environmental literature.…”

Section: Literature Reviewmentioning

confidence: 99%

Trade Openness and CO2 Emissions: Evidence from Tunisia

2019

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We investigated the asymmetrical effects of trade openness on CO2 emissions and the environmental Kuznets curve (EKC) hypothesis in Tunisia during the period 1971–2014. The integration analysis suggests a mixed order of integration and the cointegration analysis corroborates the long- and short-run relationships. The EKC was proved true with a turning point gross domestic product (GDP) of approximately 292.335 billion constant US dollars, and Tunisia was found at the first phase of EKC. Moreover, we corroborate the asymmetrical effects of trade openness on CO2 emissions. The effects of increasing and decreasing trade openness are found to be positive and insignificant on CO2 emissions, respectively. The pollution haven hypothesis is found to be true in Tunisia, along with negative environmental effects associated with increasing foreign trade.

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“…This result corresponds with the studies by Bahmani-Oskooee et al (1998), Ewing and Payne (1999), Bahmani-Oskooee and Ng (2002) and Sahadudheen (2011). Currently, more researchers are examining asymmetric or symmetric effects of exchange rate on the demand for money, e.g., Bahmani-Oskooee et al (2017), Mahmood and Alkhateeb (2018), Bahmani-Oskooee and Gelan (2019), and Leong et al (2019). These research works implied that the incorporation of exchange rate into the conventional MDF is essential.…”

Section: Literature Reviewmentioning

confidence: 99%

Economic Uncertainty and the Demand for Broad Money in South Africa

Tan

Puah

Wong

et al. 2020

BER

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This paper scrutinised the impact of economic uncertainty on the broad money demand in South Africa using quarterly data from 2001 to 2018. Generalized Autoregressive Conditional Heteroscedasticity (GARCH) model is employed to capture the volatilities of selected components in order to construct an economic uncertainty index (EUI) for South Africa. The constructed index is then used as a regressor along with real income, interest rate and exchange rate in determining South African demand for broad money. The empirical finding 124 using the Autoregressive Distributed Lag approach notably shows that the EUI is negatively affecting South Africa's demand for broad money in the long term. This reveals that economic agents tend to hold real or safer assets than riskier assets, thus reduce broad money demand during times of heightened economy in South Africa. The model is cointegrated in the long-run and stable with the inclusion of EUI in the broad money demand function for South Africa. The findings are able to assist policy makers in using suitable determinants as stabilisation tools and targeting a more effective monetary policy framework refined by appropriate monetary aggregates in South Africa.

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Asymmetrical effects of real exchange rate on the money demand in Saudi Arabia: A non-linear ARDL approach

Cited by 26 publications

References 26 publications

Financial Market Development and Pollution Nexus in Saudi Arabia: Asymmetrical Analysis

Financial Market Development and Pollution Nexus in Saudi Arabia: Asymmetrical Analysis

Trade Openness and CO2 Emissions: Evidence from Tunisia

Economic Uncertainty and the Demand for Broad Money in South Africa

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