This paper addresses the issue of causality in the relationship between various types of institutions—namely, political and economic freedom—and long-run economic growth. It is shown that existing empirical studies of these relationships provide evidence of correlation, but not causation. Granger causality tests of freedom vs. growth, and freedom vs. investment are conducted using aggregate mea...

Background: One of the most fundamental objectives of the macroeconomic policies is to realize the relationship between economic growth and inflation. According to some monetary policy advisors, inflation reflects erosion in consumer’s purchasing power. Inflation as an important economic variable, affect the economic growth and its impact on economic growth has been proposed in various theories...

This paper investigates the direction of causal link between foreign direct investment (FDI) and economic growth measured in GDP in nineteen developing countries of SouthEast Asia and Latin America using Cointegration technique, Granger causality test and Error Correction Model (ECM). This paper finds that five countries in Latin America and one country in East and South East Asia have long run...

This study investigates the impact of environmental innovation, de jure trade globalization, renewable energy consumption and financial development on CO 2 emissions in United States (US) under Environment Kuznets Curve hypothesis (EKC). To do this, yearly data from 1971 to 2018 is employed using novel Augmented ARDL (AARDL) Gradual Shift causality for empirical analysis. The outcomes AARDL tes...

Using a sample of province-level panel data, this paper investigates the Granger causality associations among economic growth (GDP), foreign direct investment (FDI) and CO2 emissions in China. By applying the bootstrap Granger panel causality approach (Kónya, 2006), we consider both cross-sectional dependence and homogeneity of different regions in China. The empirical results support that the ...

this paper investigates the impacts of economic and financial developments on environmental pollution for 6 opec countries using panel cointegration and panel long-run estimator (dols) over the period 1980–2008.  the results shows that both economic and financial development have significant effect on the environmental quality in selected opec economies. the findings not support the existence o...

Pacific Economic Bulletin Volume 21 Number 2 2006 © Asia Pacific Press For Fiji, which has been suffering persistent deficits since independence, determining the relationships between inflation, budget deficits, money supply, output, and import prices is essential. We find that inflation, deficits and money supply are cointegrated when inflation is the endogenous variable, and the long-run elas...

The past four decades have witnessed rapid growth in the rate of energy consumption in China. A great deal of energy consumption has led to two major issues. One is energy shortages and the other is environmental pollution caused by fossil fuel combustion. Since energy saving plays a substantial role in addressing both issues, it is of vital importance to study the intrinsic characteristics of ...

Author Contact: Wing Yuk, P.O. Box 37063 RPO, Vancouver, BC, Canada V5P 4W7. Tel: +1-604-782-8081; email: [email protected] Abstract This study considers the long-run relationship between government expenditure and economic growth for the United Kingdom over the period 1830 to 1993. The causality analysis allows for the effects of exports, and for the presence of complex structural breaks i...