Economic policy uncertainty and growth nexus in Pakistan: a new evidence using NARDL model

Wen, Jun; Khalid, Samia; Mahmood, Hamid; Yang, Xiuyun

doi:10.1007/s10644-021-09364-2

Cited by 24 publications

(15 citation statements)

References 52 publications

(53 reference statements)

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“…The NARDL model is a suitable approach as it reserves and expands the ARDL method to capture both short-term and long-term asymmetries in the variable of interest. Furthermore, NARDL has some advantages over other nonlinearly approaches as it determines both co-integration and asymmetry via one single equation and can be applied in a mixed setting of integration order (Ahmad et al ., 2018; Wen et al ., 2022). The equation representing the asymmetric relationship is shown as follows:…”

Section: Methodology and Samplementioning

confidence: 99%

The COVID-19 pandemic and financial stability in Vietnam: evidence from the interbank market

Hoang

Hang

2023

IJSE

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PurposeThis study investigates the impact of the COVID-19 pandemic on financial stability in Vietnam, a developing country characterized by a bank-based financial system.Design/methodology/approachUsing a sample of daily data from January 23, 2020 to June 30, 2022, the VECM and NARDL models are employed to study Vietnam’s financial stability in face of the COVID-19 disaster. Following the literature on COVID-19, the authors measure the impact of the pandemic by the number of daily infected cases and the national lockdown. Given the reliance of the Vietnamese government on the banking system to regulate the economy, the authors evaluate financial stability from the interbank market and stock market perspectives.FindingsThe authors find that the pandemic imposes a destructive effect on financial stability during the early time of the pandemic; however, the analysis with an extended period indicates that this effect gradually fades in the long term. In addition, from the NARDL results, the authors reveal an asymmetric relationship between the financial market and the COVID-19 pandemic in both short term and long term.Research limitations/implicationsAn implication drawn from this study is that unprecedented health disasters should be resolved by unprecedented stringent countermeasures when conventional methods are ineffective. Although rigorous remedies may increase short-term liabilities, their implementation quickly ceases disease diffusion and helps an economy enter the recovery stage in a timelier manner.Originality/valueThe study is the first to examine the impact of the COVID-19 pandemic on financial stability, via the interbank market lens, in a developing country that relies on the bank-based financial system.

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Section: Methodology and Samplementioning

confidence: 99%

The COVID-19 pandemic and financial stability in Vietnam: evidence from the interbank market

Hoang

Hang

2023

IJSE

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“…Given the significance of economic uncertainty, numerous academic studies have explored how EPU affects various economic variables, such as economic growth (Amarasekara et al 2022 ; Bhagat et al 2016 ; Wen et al 2022 ), energy markets (Hailemariam et al 2019 ), stock markets (Li et al 2016 ; Rehman and Apergis 2019 ), investment (Kang et al 2014 ; Guo et al 2020 ; Liu and Zhang 2022 ), tourism (Akadiri et al 2020 ; Liu et al 2021 ), and exchange rate volatility (Abid 2020 ; Krol 2014 ). In addition to its economic implications, several studies have also suggested that economic uncertainty may have environmental impacts, particularly in light of the global focus on environmental issues as a key aspect of sustainable development.…”

Section: Introductionmentioning

confidence: 99%

“…Therefore, it is worthwhile to explore the impact of EPU and renewable energy consumption on GHG and CO 2 emissions in this context. Despite attempts to identify the primary drivers of environmental degradation in developing and developed economies, such as those made by Wen et al ( 2022 ), there is a severe lack of empirical research on the environmental effects of renewable energy and EPU for the economy of Egypt. Also, while there is ample evidence of the positive relationship between renewable energy consumption and environmental quality, the literature lacks consensus on the magnitude and direction of this relationship.…”

Section: Introductionmentioning

confidence: 99%

Economic policy uncertainty, renewable energy and environmental degradation: Evidence from Egypt

Selmey

Elamer

2023

Environ Sci Pollut Res

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This study contributes to the growing but still limited body of literature on the impact of economic policy uncertainty, renewable energy usage, and economic growth on environmental degradation in Egypt. Using the autoregressive distributed lag (ARDL) bound test, we examine the existence of cointegration relationships in Egypt over the period 1990–2018. Our results indicate that economic policy uncertainty is positively associated with environmental degradation in both the short and long run. Additionally, we find that economic growth exacerbates environmental degradation in both the short and long term. Finally, renewable energy consumption has a significant negative effect on environmental degradation in the long run. Therefore, ensuring economic policy stability is crucial for maintaining environmental quality. To this end, Egyptian policymakers should prioritize low-carbon research and development techniques, as well as the adoption of renewable energy sources to mitigate environmental degradation.

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“…This, in turn, can cause low‐skilled workers to lose their jobs and earn less money. Economic uncertainty affects investment decisions and economic growth simultaneously (Bloom, 2009; Caggiano et al, 2017; Wen et al, 2022). Further, increasing uncertainty may cause people to rely more on informal or unstable employment arrangements (Davis et al, 2014).…”

Section: Introductionmentioning

confidence: 99%

Economic policy uncertainty and income inequality: unveiling the effects of friendly business environment

Farooq,

Chisti,

Rasheed

et al. 2023

Bus Strat Dev

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Recent pandemic in the form of COVID‐19 has been associated with increasing income inequalities because of high uncertainty around the globe. As a result, we examined the nexus between economic policy uncertainty (EPU) and inequality and how this relation is moderated by friendly business environment reflected by ease of doing business (EODB). To understand the relation among the different dimensions several techniques like fixed effects model, Driscoll and Kraay, and panel quantile regression were employed for a sample of 20 countries ranging for the period of 12 years. Our findings show that EPU contributes to higher levels of overall income inequality (Gini‐Index) and the results are heterogenous across countries, however the concentration of wealth among top 10% rich people gets reduced with increased EPU. Additionally, we find EODB moderating the impact of EPU on income inequality by mitigating the adverse effects of EPU on income inequality. Finally, we combined the results across different proxies and models to propose suggestive policy recommendations.

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Economic policy uncertainty and growth nexus in Pakistan: a new evidence using NARDL model

Cited by 24 publications

References 52 publications

The COVID-19 pandemic and financial stability in Vietnam: evidence from the interbank market

The COVID-19 pandemic and financial stability in Vietnam: evidence from the interbank market

Economic policy uncertainty, renewable energy and environmental degradation: Evidence from Egypt

Economic policy uncertainty and income inequality: unveiling the effects of friendly business environment

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