Financial Instability, Trade Openness and Energy Prices on Leading African Countries Sustainable Growth

Ahmad, Ali Umar; Loganathan, Nanthakumar; Ismail, Suraya; Štreimikienė, Dalia; Mardani, Abbas; Hassan, Asan Ali Golam

doi:10.24818/18423264/52.1.18.08

Cited by 14 publications

(13 citation statements)

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“…The ECT(-1) coefficient value of -0.68 indicates the speed of transition to the state of equilibrium. The However, the study conducted various diagnostic tests, including the autocorrelation Lagrange multiplier, the heteroscedasticity ARCH (Auto Regressive Conditional Heteroskedasticity) test as well as the residual normality test following the work of Ahmad, Loganathan, Streimikiene, and Hassan (2018) which are presented in Table 7, indicating that all these diagnostic tests are passed by the ARDL mode. This is because we find no proof of serial correlation and heteroscedasticity.…”

Section: Resultsmentioning

confidence: 99%

Untitled

2021

International Journal of Business, Economics and Management

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The study aims to look at the relationship between environmental quality and financial instability in Nigerian over the period of 1970 to 2019 respectively. The Autoregressive Distributed Lag (ARDL) model is used in estimating the short-run as well as the long-run relationship between financial instability and the quality of the environment. The results of the study reveal that financial instability has a significant and positive impact on CO2 emissions, implying that financial instability is lowering the quality of environment in Nigeria. In addition, consistency and strength are verified by the application of numerous tests of diagnostic. The research introduces new insights that would not only be of benefit in advancing prevailing research but may also be of specific concern to policymakers in the financial sector of the country and its starring role in enhancing the quality of the environment. The results recommend that to prevent financial instability and its effect on environmental degradation in the light of policy consequences, financial sector reforms should be implemented with great caution. Contribution/Originality: This study contributes to the existing literature as the first research consideringNigeria that establishes the Aggregate Financial Stability Index (AFSI) to investigate the relationship between financial stability and environmental quality. The AFSI is made up of sub-indices that measure the development, vulnerability, and soundness of the financial sector. INTRODUCTIONDevelopment initiatives in the modern age are targeted at achieving environmentally sustainable economic growth rather than accruing and concentrating solely on growth. A clear correlation between economic activities and their adverse effects on environmental standards prevails in the current literature, and there is agreement among scholars that economic activities promote environmental degradation (Ahmad, Khan, Ur Rahman, & Khan, 2018). Many advanced and developing economies are making comprehensive efforts to resolve the issue of high CO2 emissions.

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Section: Resultsmentioning

confidence: 99%

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2021

International Journal of Business, Economics and Management

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“…(1) This model has been for several empirical literature for example Ang (2008), Sharma (2010), Menyah and Wolde-Rufael (2010), Shahbaz et al (2012), Ahmad, et al, (2018), and Ahmad, et al, (2020) among others, include the taxes, and interest, in their empirical model to examine the effect of them on economic growth. While they find generally that taxes, and interest rate stimulate economic growth.…”

Section: Methodsmentioning

confidence: 99%

An Empirical Assessment of the Effect of Taxes and Interest Rate on Economic Growth in Jordan: An Application of Dynamic Autoregressive-Distributed Lag

Alkhawaldeh

Mahmood

Jakada

2020

RWE

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This study aims to examine the effect of taxes and interest rate on economic growth in Jordan by employing the time series data from 1970-2019. Furthermore, this study applies the Augmented Dickey-Fuller, Phillips-Perron, Saikonen and Lütkepohl and Zivot-Andrews test of unit root. Moreover, the study uses cointegration test developed by Gregory and Hansen to investigate the long-run relationship and the dynamic autoregressive distributive lags were used for the estimation result. The long run and short-run estimates reveal the positive and negative effects of taxes and the interest rate on economic growth respectively. While the 1997 Asian financial crisis and 2015 food crisis show a negative effect on economic growth. Based on the findings, the study recommends that the government authorities in Jordan should lower the interest rate that will increase the investment in order to have faster economic growth. The government should urgently plan to broaden the tax base to stimulate economic growth in Jordan. Regulators should encourage banks to start raising capital immediately to strengthen capital ratios well above prudential norms, and prepare schemes for public recapitalization and, where appropriate, public purchases of non-performing assets. The next policy fulfils the government's need to enhance agricultural productivity through better technology to ensure long-term food security and reduce poverty, as well as help to boost economic growth.

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“…In order to verify stationarity of variables, the study implores the second "generations" of panel root unit tests. Techniques of the first generation presume that the units in the panel data are unassociated sectionally while the second generation allows panel unit crossrelationship (Ibrahim, et al, 2020;Ahmad, et al, 2018;Adam, et al, 2021). Furthermore, In comparison to second-generation panel unit root checks, a null hypothesis of non-stationarity is assumed.…”

Section: Panel Unit Root Testmentioning

confidence: 99%

Energy Trade Amidst Sustainable Economic Growth in Regional Cooperation of West African States: Fresh Evidence From Panel Cs-Ardl

Atiku

Ismail²,

Ahmad³

2021

IJEEP

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Financial Instability, Trade Openness and Energy Prices on Leading African Countries Sustainable Growth

Abstract: Abstract. This study aimed to examine the effect of financial instability, energy prices and trade openness on economic growth for leading African countries (Egypt, Kenya, Morocco, Nigeria and South Africa

Cited by 14 publications

References 25 publications

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An Empirical Assessment of the Effect of Taxes and Interest Rate on Economic Growth in Jordan: An Application of Dynamic Autoregressive-Distributed Lag

Energy Trade Amidst Sustainable Economic Growth in Regional Cooperation of West African States: Fresh Evidence From Panel Cs-Ardl

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