Does Energy Consumption and Trade Openness Contribute to Economic Growth in the East Asian Growth Area?

Taasim, Shairil Izwan; Pinjaman, Saizal; Albani, Aliashim

doi:10.32479/ijeep.10644

Cited by 4 publications

(2 citation statements)

References 22 publications

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“…Bank performance could be enhanced by higher trade openness through access to international financial markets and intensive competition in credit markets (Shahbaz et al, 2018(Shahbaz et al, , 2020. Trade openness also aids domestic banks in borrowing cheap money from foreign sources and lending it to domestic borrowers (Taasim et al, 2021). Trade openness is a mechanism that compensates for lower profits, which aid in keeping an adequate return on equity for increased investment in the credit market and greater competitiveness (Terzi, 2016;Triki et al, 2017).…”

Section: Literature Review and Hypotheses Developmentmentioning

confidence: 99%

“…Bank performance could be enhanced by higher trade openness through access to international financial markets and intensive competition in credit markets (Shahbaz et al ., 2018, 2020). Trade openness also aids domestic banks in borrowing cheap money from foreign sources and lending it to domestic borrowers (Taasim et al. , 2021).…”

Section: Literature Review and Hypotheses Developmentmentioning

confidence: 99%

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The impact of trade openness on the cost of financial intermediation and bank performance: evidence from BRICS countries

Rahman

et al. 2021

IJOEM

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PurposeThe purpose of this paper is to examine the impact of trade openness on the cost of financial intermediation and bank performance. Developed and developing countries are currently pursuing trade openness to achieve higher bank performance with less intermediation costs.Design/methodology/approachIn attaining the study's objectives, several regression methodologies were employed (i.e. system generalized method of moments (GMM), fixed effect, pooled ordinary least squares (OLS) and vector error correction model (VECM)). The authors tested the hypothesis on data of 885 banks from BRICS countries, which span 18 years (2000–2017).FindingsThe results from this robust study showed that embedding higher trade openness reduces financial intermediation costs and improves banks' performance. The results remain robust following the use of different estimation methods and alternative variables as proxies. In addition, results were still valid upon considering bank level, industry level and country level as control variables. It was also observed that the relation pattern holds its rigidity during “good” and “bad” times (i.e. the global financial crisis).Originality/valueThe results provide better references for bank regulators, academics and policymakers to take advantage of the low financial intermediation costs resulting from trade openness.

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Section: Literature Review and Hypotheses Developmentmentioning

confidence: 99%

Section: Literature Review and Hypotheses Developmentmentioning

confidence: 99%

The impact of trade openness on the cost of financial intermediation and bank performance: evidence from BRICS countries

Rahman

et al. 2021

IJOEM

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Do FDI and Trade Openness Matter for Economic Growth in CIS Countries? Evidence from Panel ARDL

Sobirov,

Jeong,

Karimov

et al. 2023

Journal of East-West Business

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New insights into the nexus between international trade, urbanization, nonrenewable energy consumption, and environmental quality in China: Evidence from Multivariate Threshold Regression

Sohail,

Nawaz Abbasi,

Ahmed

2024

Natural Resources Forum

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International trade (TRADE), urbanization (URB), and nonrenewable energy consumption (NRE) can pose significant impacts on environmental quality and economic growth. In addition, TRADE and URB can influence the transition to cleaner energy within an economy. China is one of the largest economies with a massive contribution to global carbon emissions. Thus, there is a need for a comprehensive study that could explore the interrelationships between TRADE, URB, NRE, and environmental quality to assist economic and environmental policymaking in the country. This study explores these relationships and also reveals the precise threshold levels that these factors should not exceed to protect the environment and promote sustainability. The time series data from the Chinese economy from 1980 to 2021 are analyzed by using the Multivariate Threshold Regression (MThR) model. The findings revealed that TRADE has a detrimental impact on environmental quality in the low regime whereas a positive effect in the high regime. In contrast, NRE negatively affects the environment in both regimes, while URB positively influences the environmental quality in both regimes. Furthermore, the threshold levels of variables required to influence sustainability and promote environmental quality were revealed as 46.74% of GDP for TRADE, 45.20% of the total population for URB, and 23448.2TWh for NRE. Moreover, TRADE leads the transition from traditional to modern energy consumption, while URB does not play a leading role in the energy transition. Based on the results, policies are recommended to promote sustainable development.

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Does Energy Consumption and Trade Openness Contribute to Economic Growth in the East Asian Growth Area?

Cited by 4 publications

References 22 publications

The impact of trade openness on the cost of financial intermediation and bank performance: evidence from BRICS countries

The impact of trade openness on the cost of financial intermediation and bank performance: evidence from BRICS countries

Do FDI and Trade Openness Matter for Economic Growth in CIS Countries? Evidence from Panel ARDL

New insights into the nexus between international trade, urbanization, nonrenewable energy consumption, and environmental quality in China: Evidence from Multivariate Threshold Regression

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