The chronic government deficit (fiscal deficit) and increase in the price level (inflation) have become major concerns for economists policymakers. While numerous studies examined twin problems of fiscal inflation both developed developing economies, their results are inconclusive due to different estimation techniques, chosen time periods, selection variables, etc. Therefore, we deficit-inflat...

External public debt and foreign exchange reserve (FER) are performing a crucial role in the growth development of countries. To examine short-run long-run dynamics among external (EPD) FER Ethiopia, study used 39 years data (1981 to 2019) from National bank Ethiopia (NBE) World Bank sets. The Autoregressive Distributed Lag (ARDL) model with error correction (ECM) was employed after checking po...

This paper proposes a new system-equation test for threshold cointegration based on a threshold vector autoregressive distributed lag (ADL) model. The new test can be applied when the cointegrating vector is unknown and when weak exogeneity fails. The asymptotic null distribution of the new test is derived, critical values are tabulated, and finite-sample properties are examined. In particular,...

The study aims to estimate an international reserves demand model for China using economic growth, propensity to import, real effective exchange rate and trade openness variables for quarterly period spanning from 1985Q1 to 2014Q4.The bounds testing technique to cointegration is used to test for a long run relationship, while the autoregressive distributed lag approach is used to estimate short...

his study attempts to examine the empirical relationship between gasoline taxes (as the most effective energy carrier of emissions) and labor productivities in the case of Iran using the time series data for the period 1990-2015  usingthe autoregressive distributed lag (ARDL) approach. This research tests the interrelationship between the variables using the bounds testing to cointegration proc...

In this study, the causality links between electricity consumption and economic growth are investigated for Turkey, the United Kingdom, Spain, Belgium and United States covering the period from 1964 to 2014. The results of autoregressive distributed lag (ARDL) approach, bounds testing and error correction model show that there is a positive one-way and statistically significant causality moving...