Financial Development, Technological Innovation and Income Inequality: Time Series Evidence from Turkey

Çetin, Murat; Demir, Harun; Saygın, Selin

doi:10.1007/s11205-021-02641-7

Cited by 34 publications

(14 citation statements)

References 73 publications

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“…With expenditures reaching about USD 7 billion, Turkey built the highest renewable capacity in a single year in 2020, at around 4800 megawatts (MW) (https://www.iea.org/news/turkey-s-success-inrenewables-is-helping-diversify-its-energy-mix-and-increase-its-energy-security, assessed on 10 September 2022). This outcome aligns with the studies of [72,73] for Turkey; however, the study of [74] contradicts this finding.…”

Section: Fourier Quantile Causality Resultssupporting

confidence: 87%

The Race to Zero Emissions in MINT Economies: Can Economic Growth, Renewable Energy and Disintegrated Trade Be the Path to Carbon Neutrality?

Adebayo

Ağa

2022

Sustainability

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The current paper evaluates the role of disintegrated trade, financial development, and renewable energy on consumption-based carbon emissions (CCO2) in MINT nations between 1990Q1 and 2019Q4. This paper utilizes the novel Bootstrap Fourier Granger causality in quantiles (BFGC-Q) to evaluate this connection. This approach produces tail-causal and asymmetric causal connections between the indicators within the Fourier approximation, contrary to the Toda–Yamamoto causality and other conventional Granger tests. The outcomes uncover a unidirectional causality from economic growth and renewable energy to CCO2 emissions in each MINT nation. Moreover, unidirectional causality emerged from financial development to CCO2 for Indonesia, Nigeria, and Turkey. Moreover, exports have predictive power over CCO2 in Indonesia, Turkey, and Mexico, while imports only have predictive power over CCO2 emissions in Turkey. Lastly, financial development causes CCO2 in Indonesia, Nigeria, and Mexico. In summary, green energy and exports are essential factors that decrease CCO2 emissions and therefore decrease ecological deterioration in Mexico, Indonesia, and Turkey. On the flip side, imports only trigger CCO2 emissions in Turkey and Mexico. Lastly, the financial development effect on CCO2 emissions is positive in Mexico, Indonesia, and Nigeria, while an insignificant impact is found in Turkey. Based on these findings, policy ramifications are initiated.

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Section: Fourier Quantile Causality Resultssupporting

confidence: 87%

The Race to Zero Emissions in MINT Economies: Can Economic Growth, Renewable Energy and Disintegrated Trade Be the Path to Carbon Neutrality?

Adebayo

Ağa

2022

Sustainability

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“…DLTOP's effect on economic growth is positive but not statistically significant in both models, contrary to Enowbi Batuo and Asongu (2015)'s results. In general, the ARDL models provide mixed proof on the connection among income dissimilarity and economic growth, consistent with previous literature (Enowbi Batuo and Asongu, 2015;Cetin, Demir, & Saygin, 2021;Chroufa and Chtourou's, 2022).…”

Section: Effects Of Inequality Of Income and Political Economy Channe...supporting

confidence: 88%

Unraveling the Mechanisms of Income Inequality on Economic Growth in Ethiopia: Insights from Empirical Analysis

Hordofa

2023

Preprint

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The aim of this research was to investigate how income inequality impacts the economic growth of Ethiopia by analyzing the various ways in which it influences economic growth. The study gathered an exclusive dataset from diverse secondary sources that ranged from 1981 to 2016. To examine the link between transmission channels, inequality of income, and growth, the study utilized a stepwise regression autoregressive distributed lag (ARDL) approach. The research concluded with four lines of reasoning, including political economy, innovation, fertility, and saving channels. According to the findings, inequality of income has a positive impact on innovative activities and total savings as measured by gross fixed capital formation, but it only has a negative and significant effect on economic growth through the channels of innovation and savings. While caution should be taken when generalizing the findings to other countries, this study offers valuable insights into the intricate link between income inequality and economic growth specifically in Ethiopia. The study recommends that policymakers implement targeted policies to address the different transmission channels through which income inequality affects economic growth, to comprehensively tackle this issue.

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“…In this phase, FD is expected not to contribute to ecological sustainability/degradation. On the other hand, some studies found a negative association (Charfeddine and Kahia, 2019;Wu et al, 2022) and positive association between FD and EF (Cetin et al, 2021;Samour et al, 2022a).…”

Section: Discussion Of Findingsmentioning

confidence: 97%

“…Consumers and businesses may invest in green energy, energy-intensive technologies and R&D thanks to the financial sector's increased availability of financing, which improves ecological quality (Destek and Sarkodie, 2019;Faisal et al, 2021;Samour et al, 2022b). On the flip side, weak financial sector development could enable fraudulent business activities that direct loans toward operations that are harmful to the environment (Shahbaz et al, 2016;Cetin et al, 2021). Additionally, having access to capital may encourage entrepreneurs to install new equipment and facilities, raising energy consumption and resulting in greater environmental pollution and waste discharges (Adebayo, 2022b).…”

Section: Introductionmentioning

confidence: 99%

Do renewable energy consumption and financial development contribute to environmental quality in MINT nations? Implications for sustainable development

Adebayo

Ağa²,

Agyekum³

et al. 2022

Front. Environ. Sci.

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Maintaining a balance between the well-being of the economy and the environment has become a top priority for governments globally. In the contemporary age, world economies, particularly the emerging ones like MINT nations, highlight the need for eco-friendly economic expansion. The MINT nations are thriving economically but are having difficulty reducing their Ecological footprint (EF). This paper aimed to determine if factors such as population density, renewable energy, foreign direct investment, economic growth, and financial development impact ecological footprint in the MINT countries between 1990 and 2018. The study applied ample advanced econometrics such as method of moments quantile regression (MMQR), augmented mean group (AMG) and Common Correlated Effects Mean Group (CCEMG). The overall results indicated that the variables are integrated at the first difference and are cointegrated. The AMG, CCEMG and MMQR results reveal that economic growth deteriorates ecological well-being by promoting the EF while foreign direct investment, population density and renewable energy assists in enhancing it by mitigating the EF in the MINT nations. In addition, financial development does not exert a significant effect on EF. The Dumitrescu Hurlin Panel Causality results show unidirectional causality from economic growth, financial development, population density, and renewable energy to EF. Based on these results policy recommendations are suggested.

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Financial Development, Technological Innovation and Income Inequality: Time Series Evidence from Turkey

Cited by 34 publications

References 73 publications

The Race to Zero Emissions in MINT Economies: Can Economic Growth, Renewable Energy and Disintegrated Trade Be the Path to Carbon Neutrality?

The Race to Zero Emissions in MINT Economies: Can Economic Growth, Renewable Energy and Disintegrated Trade Be the Path to Carbon Neutrality?

Unraveling the Mechanisms of Income Inequality on Economic Growth in Ethiopia: Insights from Empirical Analysis

Do renewable energy consumption and financial development contribute to environmental quality in MINT nations? Implications for sustainable development

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