Do countries’ interdependence, asymmetry, and policy variances matter in the remittance-poverty causal nexus?

Olaniyi, Clement Olalekan; Odhiambo, Nicholas Mbaya

doi:10.1080/09638199.2023.2288191

Cited by 3 publications

(4 citation statements)

References 129 publications

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“…, 2023; Olaniyi et al. , 2023c; Olaniyi and Odhiambo, 2023a). This approach’s causal inference is valid since it compensates for potential simultaneity bias, omitted variable bias and endogeneity concerns.…”

Section: Methodology and Data Sourcementioning

confidence: 99%

“…Shocks in one country can readily spread to other countries Olaniyi, 2022;Olaniyi et al, 2023c;Olaoye and Aderajo, 2020). Causality findings may be inefficient and biased if cross-sectional dependency is unaccounted for (Olaniyi and Odhiambo, 2023a;Uzar et al, 2023). This calls into question the validity of cross-sectional independence among nations, which is implicitly assumed in studies on the poverty-inflation causal nexus.…”

Section: Inflationpoverty Causal Nexus In Ssamentioning

confidence: 99%

“…Four, the Dumitrescu and Hurlin (2012) causality technique used in this work was designed to pair variables to determine underlying causality (see Lopez and Weber, 2017;Olaniyi, 2023;Uzar et al, 2023;Olaniyi et al, 2023c;Olaniyi and Odhiambo, 2023a). This approach's causal inference is valid since it compensates for potential simultaneity bias, omitted variable bias and endogeneity concerns.…”

Section: Data Decomposition and Model Specificationmentioning

confidence: 99%

“…, 2023c; Olaoye and Aderajo, 2020). Causality findings may be inefficient and biased if cross-sectional dependency is unaccounted for (Olaniyi and Odhiambo, 2023a; Uzar et al. , 2023).…”

Section: Introductionmentioning

confidence: 99%

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

Olaniyi,

Odhiambo

2024

ITPD

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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.

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Section: Methodology and Data Sourcementioning

confidence: 99%

Section: Inflationpoverty Causal Nexus In Ssamentioning

confidence: 99%

Section: Data Decomposition and Model Specificationmentioning

confidence: 99%

“…, 2023c; Olaoye and Aderajo, 2020). Causality findings may be inefficient and biased if cross-sectional dependency is unaccounted for (Olaniyi and Odhiambo, 2023a; Uzar et al. , 2023).…”

Section: Introductionmentioning

confidence: 99%

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

Olaniyi,

Odhiambo

2024

ITPD

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Green mining in China: Fintech's contribution to enhancing innovation performance aimed at sustainable and digital transformation in the mining sector

Akhtar,

Tian,

Alsedrah

et al. 2024

Resources Policy

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Do natural resource rents aid renewable energy transition in resource‐rich African countries? The roles of institutional quality and its threshold

Olaniyi,

Odhiambo

2024

Natural Resources Forum

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Transitioning to a carbon‐neutral renewable energy (REN) option to decarbonize ecosystems and mitigate carbon dioxide (CO2) emissions and the negative impacts of climate change is consistent with United Nations Sustainable Development Goals 7 and 13. Scholars have identified natural resource wealth and institutions as critical factors in the REN transition in resource‐rich countries. Financial barriers are arguably the most significant impediments to transitioning to REN, as it is more capital‐intensive and costly to produce, invest in, and use than traditional fossil fuel‐based energy. Meanwhile, weak institutions and corruption in most resource‐rich countries culminate in the resource curse phenomenon and the mismanagement of natural resource wealth. It implies that institutions (weak or strong) modify the natural resource rent contribution to the REN transition. Previous research has paid little attention to the impact of the interplay between natural resources and institutional quality on the REN transition in resource‐rich African countries. This study examines how institutions moderate the contribution of natural resource wealth to accelerating or inhibiting the REN switch in resource‐rich African countries for the period 2000–2021, using fully modified ordinary least squares, a Driscoll–Kraay nonparametric covariance matrix, and moments‐based quantile regression estimators. This study departs from earlier studies by determining the institutional quality threshold above which institutions significantly stimulate natural resource rents to accelerate Africa's REN transition. The findings indicate that institutions in resource‐rich African countries breed inefficient bureaucracies and corruption in natural resource rent administration. These undermine the ability of natural resource incomes to facilitate a shift to renewable energy sources. The threshold analyses indicate that most resource‐rich African countries operate below the institutional quality threshold. This finding corroborates that inefficient institutions abet natural resource rent mismanagement and hinder the channeling of resource income toward the REN transition. The findings' policy implications are robustly articulated and outlined.

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Do countries’ interdependence, asymmetry, and policy variances matter in the remittance-poverty causal nexus?

Cited by 3 publications

References 129 publications

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

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

Green mining in China: Fintech's contribution to enhancing innovation performance aimed at sustainable and digital transformation in the mining sector

Do natural resource rents aid renewable energy transition in resource‐rich African countries? The roles of institutional quality and its threshold

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