What do unit root tests tell us about unemployment hysteresis in transition economies?

Akay, Ebru Çağlayan; Oskonbaeva, Zamira; Bülbül, Hoşeng

doi:10.1108/aea-05-2020-0048

Cited by 11 publications

(5 citation statements)

References 75 publications

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“…Despite the widespread use of the augmented Dicky-Fuller and Phillips-Perron tests in standard unit root analysis, their reliability dwindles in smaller sample sizes, as underscored by Ali et al [102] and Khan et al [103]. To address this, our research adopted the KPSS unit root test, as endorsed by Ça glayan Akay et al [104] and Webb et al [105], ensuring a more reliable assessment of the stationarity of the variables in question. In the process of selecting the most suitable lag length for our model, we explored various options.…”

Section: Econometric Modelmentioning

confidence: 99%

Unraveling Korea’s Energy Challenge: The Consequences of Carbon Dioxide Emissions and Energy Use on Economic Sustainability

Li,

2024

Sustainability

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This research delves into the effects of carbon dioxide emissions and energy consumption on economic growth in Korea from 1980 to 2022, employing a sophisticated nonlinear autoregressive distributed lag model. The study unveils pivotal findings, most notably the positive association between carbon dioxide emissions and economic growth, suggesting that periods of economic expansion in Korea have been accompanied by surges in emissions. Furthermore, the investigation highlights a significant, albeit asymmetrical, positive impact of primary energy consumption on economic growth, illuminating the critical role of energy in the nation’s economic trajectory. The analysis also identifies essential economic determinants—namely, the labor force, gross fixed capital formation, and net inflows of foreign direct investment—underscoring their pivotal contributions to economic proliferation. The reliability of these insights is corroborated through advanced econometric techniques, including fully modified ordinary least squares and dynamic ordinary least squares methods. A noteworthy discovery emerges from the Toda–Yamamoto causality test, revealing bidirectional Granger causality between carbon dioxide emissions and economic growth, as well as between energy consumption and economic growth. Moreover, it uncovers a unidirectional causality flowing from labor, capital formation, and foreign direct investment towards economic growth. These findings elucidate the complex interplay between environmental and economic elements, highlighting the critical need for sustainable energy policies and proactive environmental stewardship in Korea. By advocating for a synthesis of economic advancement and environmental sustainability, this study presents indispensable insights for policymakers. It calls for a judicious approach to balancing Korea’s economic ambitions with its ecological responsibilities, thereby charting a sustainable path forward for the nation. Through its comprehensive analysis, this research contributes valuable perspectives to the discourse on economic development and environmental sustainability, offering guidance for Korea’s strategic planning and policy formulation.

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Section: Econometric Modelmentioning

confidence: 99%

Unraveling Korea’s Energy Challenge: The Consequences of Carbon Dioxide Emissions and Energy Use on Economic Sustainability

Li,

2024

Sustainability

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“…According to Akay et al (2020), the unit root test calculates the specifications for a time series data set including deterministic, trend, nonlinear, and structural breaks. This test can make stronger and more precise estimates, making it possible to describe the structure of the data accurately.…”

Section: Wherementioning

confidence: 99%

Pandemic Shock and Economic Variables Responses in ASEAN Countries Using Panel Vector Autoregressive Model

Retnasih

Herdianti

2023

JEP

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This quantitative research aims to measure the factors that affect the economy in 10 ASEAN countries in 2014-2020. The method used is panel vector autoregressive (PVAR). The results of the research were divided into several tests. First, the causality test shows that GDP has an effect on inflation and money supply with a one-way causality. Second, the PVAR test shows that the money supply has a significant effect on inflation and unemployment rate at lags 1 and 2. The follow-up test, namely IRF, shows that the shocks of GDP responded by all economic variables are greater than shocks to other variables. While the results of the VD test show that GDP is the largest contributor to the variation in the value of all economic variables studied, both in the short and long term.

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“…Due to the characteristics of our data, we conducted a unit root test before conducting the multiple regression analysis to determine the impact of various SDGs on the GDP growth rate. Testing for unit roots is essential for determining if and how frequently time series data should be differentiated [167]. The unit-roots test is essential for determining the stationarity of the data in time series analysis [168][169][170].…”

Section: Unit Root Testmentioning

confidence: 99%

Impact of Sustainable Development Goals on Economic Growth in Saudi Arabia: Role of Education and Training

Singh

Alam

et al. 2022

Sustainability

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Sustainable development goals (SDGs) are intended to be attained as a balanced whole. However, significant interactions (the synergies and trade-offs) between the SDGs have caused the need, especially in developing economies, to identify and pursue them in line with their particular developmental needs. The research intends to empirically investigate the relationship between selected UN SDGs and GDP growth rate as a proxy for economic well-being in Saudi Arabia. We also investigate the role of education and training in achieving SDGs in accordance with the Saudi Vision 2030, which places emphasis on the knowledge economy. This research employs multiple regression analysis to explore the relationship between the SDG variables and the GDP. The results show that education and training, gender equity/women’s empowerment, greenhouse gas emissions, and decent employment are positively and significantly related to the GDP growth, whereas poverty, hunger, and health appear to be negatively related. The research indicates that education and training can promote economic, socioeconomic, and health goals without compromising environmental goals. Consequently, the Saudi government should invest more in education and training to maximize synergies and minimize tradeoffs between the SDGs. This will help to promote sustainable employment generation, build human capital, improve socioeconomic empowerment through technology, and boost economic growth.

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What do unit root tests tell us about unemployment hysteresis in transition economies?

Cited by 11 publications

References 75 publications

Unraveling Korea’s Energy Challenge: The Consequences of Carbon Dioxide Emissions and Energy Use on Economic Sustainability

Unraveling Korea’s Energy Challenge: The Consequences of Carbon Dioxide Emissions and Energy Use on Economic Sustainability

Pandemic Shock and Economic Variables Responses in ASEAN Countries Using Panel Vector Autoregressive Model

Impact of Sustainable Development Goals on Economic Growth in Saudi Arabia: Role of Education and Training

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