Do financial development and personal remittances matter in South African economic growth? A bound testing investigation

Olerawaju, Odunayo Magret; Akinola, Gbenga Wilfred; Yearwood, Verna

doi:10.15208/beh.2018.65

Cited by 2 publications

(3 citation statements)

References 17 publications

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“…While this result is in concord with the Grossman hypothesis, which views an individual as a producer and consumer of health, the longevity of such individuals could be endogenously determined. This result is in tandem with the work of [20] who noted that CO 2 emissions negatively impact human health in the region under investigation.…”

Section: Discussion Of Resultssupporting

confidence: 85%

“…Empirical studies are divided into country-specific and crosscountry studies and investigations. For cross-sectional studies from 1990 to 2013, [20], for instance, engaged a quantile regression method to investigate the impact of environmental quality on an individual's health in the Anglophone countries of West Africa (Sierra Leone, Gambia, Ghana, Liberia, and Nigeria). Their findings revealed that CO 2 emissions from liquid and gaseous fuel consumption, public and commercial services, residential buildings, solid fuel consumption, and transport impacts negatively on human health in the subregion.…”

Section: Literature Reviewmentioning

confidence: 99%

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The Effects of Fossil Fuel Consumption-Related CO2 on Health Outcomes in South Africa

Gbenga Wilfred,

Ohonba

2024

Sustainability

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The consumption of fossil fuel significantly contributes to the growth of South Africa’s economy but produces carbon dioxide (CO2), which is detrimental to environmental sustainability with overall effects on health outcomes. This study sought to (i) examine the impacts of fossil energy consumption-related CO2 emissions on the under-five mortality and infant mortality rates in South Africa and (ii) analyse the causal relationship between fossil energy consumption, CO2 emissions, and mortality rates in South Africa. Linear and nonlinear ARDL bounds and the Toda–Yamamoto causality test were used to establish the equilibrium property in the long run and the causal effects of the models’ variables. Health outcome data include the under-five mortality rate (MTR1) and infant mortality rate (MTR2). Other explanatory variables include fossil energy consumption (FOC), inflation (Inf), carbon dioxide emissions (CO2), and government expenditure (GEH). It is evident from the results of linear ARDL that the first lag of the under-five mortality rate in the short run has a positive and significant impact on the under-five mortality rate in South Africa. Holding the other variables constant, the under-five mortality rate in South Africa would increase by 0.630% for every 1% increase in its lagged values. Fossil energy consumption has a positive and significant effect on the under-five mortality rate in South Africa. This significant relationship implies that a 1% increase in fossil energy consumption increases the under-five mortality rate per 1000 persons per year in South Africa by 0.418% in the short run, all things being equal. The results from the Toda–Yamamoto causality test revealed that there is no causality between the under-five mortality rate and both the consumption of fossil fuel and CO2 emissions in South Africa. The results from nonlinear ARDL presented four separate scenarios. In the short run, during increasing levels of CO2 in the initial period (lag of CO2), a 1% increase in CO2 would decrease the under-five mortality rate by 1.15%. During periods of decreasing levels of CO2 in the short run, a 1% increase in CO2 would increase the infant mortality rate by 0.66%. Again, during previous and current periods of decreasing levels of FEC, a 1% increase in FEC would increase the infant mortality rate by 0.45% and 0.32%, respectively. In the long run, during periods of increasing levels of CO2, a 1% increase in CO2 would decrease the infant mortality rate by 4.62% whereas during decreasing levels of CO2, a 1% increase in CO2 would increase the infant mortality rate by 2.3%. The risk posed by CO2 emissions and their effects on humans can then be minimised through a government expansionary policy within health programmes.

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Section: Discussion Of Resultssupporting

confidence: 85%

Section: Literature Reviewmentioning

confidence: 99%

The Effects of Fossil Fuel Consumption-Related CO2 on Health Outcomes in South Africa

Gbenga Wilfred,

Ohonba

2024

Sustainability

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“…Abida and Sghaier (2014), in a study of 4 North African countries from 1980-2011, find that remittances positively impact economic growth, and also that the impact of remittances become more pronounced in the presence of financial development, an indication that financial development and remittances complement each other to influence growth. Olarewaju et al (2018), in a South African study from 1995 to 2015, employ ARDL on a quarterly data and find a positive and long-run relationship among financial development, remittances and economic growth, implying that a well-functioning financial system could increase remittance inflows and achieve economic growth in the long run. Abosedra and Fakih (2017) assess the role of remittances and financial deepening in Lebanon from 1993 to 2011.…”

Section: Literature Review 21 Theoretical Foundationmentioning

confidence: 99%

Financial liberalization, remittances and economic growth in Nigeria (1990–2018)

Kudaisi

Osinubi

2021

JEAS

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PurposeInternational remittances are an important segment of external financial flows in Nigeria, currently superseding official development aid (ODA) in terms of volume, and foreign direct investment (FDI) in terms of stability. This study is motivated by the recent increase in remittance flows in Nigeria as the highest recipient in West Africa, and the fact that the growth impact of remittances is weak within the country. The financial liberalization index developed by Chinn and Ito (2006) is employed in this study to examine the role of financial liberalization in the remittances-growth nexus in Nigeria over the period 1990–2018.Design/methodology/approachTo address the possibility of endogeneity among the variables in the model, the study employs the generalized method of moments (GMM) as a technique of analysis.FindingsRemittances and financial liberalization are found to have negative significant impacts on economic growth. However, the effect of the interaction term of financial liberalization and remittances on economic growth is positive and significant. This suggests that the two variables act as complements in the enhancement of economic growth in Nigeria. The study thus concludes that financial liberalization is a strong transmission channel through which remittance inflows positively affect economic growth in Nigeria. The study also advocates for a well-developed financial sector in order to attract more growth-enhancing remittances into the country.Research limitations/implicationsThe implication of the research findings is that an unrestrained financial sector is necessary to encourage and optimize the benefits of remittance flows on economic growth in Nigeria.Originality/valuePrevious studies have considered the effects of financial development on the remittances-growth nexus in Nigeria. However, this study examines the role of financial liberalization in the nexus between remittances and economic growth in Nigeria by using the Chinn and Ito (2008) index of financial openness.

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Do financial development and personal remittances matter in South African economic growth? A bound testing investigation

Cited by 2 publications

References 17 publications

The Effects of Fossil Fuel Consumption-Related CO2 on Health Outcomes in South Africa

The Effects of Fossil Fuel Consumption-Related CO2 on Health Outcomes in South Africa

Financial liberalization, remittances and economic growth in Nigeria (1990–2018)

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