Structural Breaks and Current Accounts in Three Clubs of Eurozone Countries

Exploring the effects of import diversification on energy efficiency: Evidence from the OECD economies

Unveiling green trade-led EKC framework: A comprehensive analysis using carbon, material, and ecological footprints across G20 nations.

Sustainability with environmental policy stringency and financial development for green technological innovations: Evidence from Sub-Saharan Africa

The pressing challenges of climate change and energy access in the East African Community (EAC) necessitate a strategic focus on research and development (R&D) to enhance renewable energy consumption and support sustainable human development. This study investigates the critical role of research and development (R&D) in promoting renewable energy consumption and its impact on sustainable human development within the East African Community (EAC). As global climate change intensifies, the transition from conventional energy sources to renewable alternatives is essential for fostering economic growth and improving human development indicators. Despite the recognized potential of renewable energy, EAC nations face challenges, including inadequate funding for R&D, limited technological capabilities, and ineffective policy frameworks. This paper analyzes the intricate relationship between R&D investments and renewable energy adoption, utilizing a comprehensive econometric approach with data spanning from 1996 to 2021. The study employs advanced econometric estimators, including Feasible Generalized Least Squares (FGLS) and Panel-Corrected Standard Errors (PCSE), alongside robustness tests such as Driscoll-Kraay standard errors and Fully Modified Ordinary Least Squares (FMOLS). The findings reveal that enhancing R&D is vital for overcoming barriers to renewable energy implementation, ultimately contributing to sustainable development goals. The study underscores the necessity for targeted policy interventions that leverage R&D to facilitate technological advancements, improve energy efficiency, and promote equitable access to renewable energy resources in the EAC region.

ABSTRACTThe sustainable development goals (SDGs) 7, 9, and 13, as well as the commitments proposed at the Climate Change Conference (COP 27), aim for unprecedented collaboration between governments, businesses, financial institutions, and civil society to achieve carbon neutrality, climate resilience, and the COP goals. This study explores the interplay between nonrenewable energy, green finance, eco‐innovation, green taxes, and green growth of G20 economies from 2002 to 2021. The evidence of cross‐sectional dependence and heterogeneity directed us to use the Method of Moments Quantile Regression (MMQR) estimation and robustness check performed through the Feasible Generalized Least Squares (FGLS), Panel‐corrected Standard Error (PCSE), and Fully Modified Ordinary Least Squares (FM‐OLS) techniques. The MMQR quantiles ranging from 0.20 to 0.80 revealed that eco‐innovation, green taxes, and green finance positively impact environmentally adjusted multifactor productivity–green growth. In contrast, nonrenewable energy has a negative impact. Furthermore, the interaction between nonrenewable energy and green finance has a significant positive impact on green growth. The findings suggest that G20 economies must integrate economic growth with environmental protection goals, encourage the implementation of efficient climate technologies, switch to renewable energy sources, and ensure that inclusive finance mechanisms are in place. It has been suggested that the detrimental effects of nonrenewable energy sources on ecosystems accelerate environmental deterioration and climate change. By contrast, green finance, green taxation, and sustainable innovation practices act as catalysts to address these challenges. The study recommends some key policy guidelines for the execution of SDGs 7, 9, 13, and COP 27 commitments.

Objective: to study the relationship among tourism demand and economic growth, real exchange rate, and economic policy uncertainty (EPU) in Australia, China, France, Germany, Italy, Japan, Spain, the United States, and the United Kingdom. Methodology: cross-section dependence, unit root, and cointegration tests were applied. The long-term model was estimated according to the Panel-Corrected Standard Error (PCSE), Feasible Generalised Least Squares (FGLS), and Fully Modified Ordinary Least Square (FMOLS). Results: the results show a positive relationship between economic growth and the real exchange rate concerning tourism demand. In the long term, the causality relationship is from uncertainty, exchange rate, and GDP to tourism. The feedback hypothesis is validated. Limitations: availability of data.Originality: it studies the joint influence of economic growth and the EPU on demand for tourism in the countries of the world’s leading destinations for international tourism according to international tourist income. Conclusions: tourism will drive general economic growth and, correspondingly, investment in other sectors of the economy will also influence an increase in tourism.

China is vigorously building a unified domestic market, with priority given to regional market integration while maintaining a national unified market. Limited research has been conducted on whether market integration affects renewable energy technology innovation (RETI). This paper empirically studies this topic based on panel data of 30 Chinese provinces from 2004 to 2020 using FMOLS (Fully Modified Ordinary Least Squares), DOLS (Dynamic Least Squares method), and FGLS (Feasible Generalized Least Squares). Research results have been verified by robustness tests. The main conclusions are as follows: (1) Market integration has an important positive impact on RETI, namely, boosting it. This conclusion remains robust when different indicators of innovation and market segmentation are included. (2) The regional impacts of market integration on RETI are heterogeneous, being the greatest in east China, followed by west China and central China. (3) Market integration affects RETI through energy structure and technological innovation. It can optimize energy structure, improve technological innovation, and thus enhance RETI. Based on the above conclusions, in order to improve RETI in China and expand its contribution to carbon neutrality and carbon peaking, China needs to strengthen the construction of a national unified market and implement differentiated market integration policies in east, central, and west China. Furthermore, it is necessary to give full play to the role of energy structure and technological innovation in market integration by optimizing energy structure and improving technological innovation.

Environmental policies and green technologies: Impacts on energy sustainability in the African continental free trade area

Aims: This study examined the relationship between trade openness, exchange rates, and unemployment in ECOWAS countries. It investigated whether increased trade openness reduces or exacerbates unemployment and how exchange rate fluctuations impact labor markets. The analysis is grounded in a theoretical framework that integrates trade theory, labor market dynamics, and macroeconomic stability to contextualize the empirical findings. Study Design: A panel econometric approach was employed, utilizing both Fully Modified Ordinary Least Squares (FMOLS) and Dynamic Ordinary Least Squares (DOLS) methods to ensure robust estimates. Place and Duration of Study: The study covered 15 ECOWAS countries, with panel data spanning from 1991 to 2020, sourced from the World Bank Development Indicators (WDI). Methodology: The research applied panel unit root tests (Im, Pesaran, and Shin; ADF; and Phillips-Perron) to determine variable stationarity. Pedroni co-integration tests confirm long- term relationships among trade openness, exchange rates, GDP, population growth, and unemployment. The FMOLS and DOLS models are then used to estimate the effects of these variables on unemployment. Results: Findings indicate that trade openness has a positive and statistically significant effect on unemployment (FMOLS: 5.43, p<0.01; DOLS: 2.71, p<0.01), suggesting that increased trade is associated with higher unemployment. Conversely, exchange rates (FMOLS: -3.47, p<0.01; DOLS: -3.63, p<0.01) and GDP growth (FMOLS: -3.26, p<0.01; DOLS: -2.48, p<0.01) negatively correlate with unemployment, implying that economic growth and stable exchange rates help reduce joblessness. The population growth rate is significant in the DOLS model (1.87, p<0.10), indicating a nuanced effect on unemployment. The models demonstrate high explanatory power (R² = 0.88 for FMOLS; R² = 0.95 for DOLS). Conclusion: The study highlights the complex interplay between trade, exchange rates, and employment in ECOWAS countries. Policymakers should balance trade policies with labor market reforms to mitigate unemployment. Stabilizing exchange rates and fostering economic growth through industrial and workforce development programs are crucial strategies for sustainable employment generation. However, the study acknowledges limitations, including potential omitted variable bias and the challenges of generalizing findings across diverse economies. Future research could explore sector-specific impacts of trade openness and exchange rate volatility, as well as the role of institutional quality in shaping labor market outcomes.

The development of green innovation in achieving Sustainable Development Goals (SDGs) is gaining popularity in recent works. However, the perspective from emerging economies is limited leaving them behind in the drive toward global sustainability. Therefore, this study provides new insights into how green innovation development and the quality of institutions have influenced green energy adoption and overall Sustainability using 30 emerging economies from 1990 to 2020. The study employs three econometric models—Fully Modified Ordinary Least Squares (FMOLS), Dynamic Ordinary Least Squares (DOLS), and Ordinary Least Squares (OLS) to make a comparative analysis. The findings show the varying and pivotal role of technological advancements, institutions, and green energy in reducing carbon footprints based on models. Notably, it was found that green innovation had a positive effect (FMOLS), and negative effect (DOLS and OLS) on CO2 emissions. Renewable energy had a negative effect (FMOLS and OLS), and a positive effect (DOLS) on CO2 emissions. Again, institutional quality showed a positive effect (DOLS and FMOLS) and a negative effect (OLS) on CO2 emissions. The study believes the DOLS model exhibited the most robust explanatory power, with the highest explanatory power of 99.9%. These results provide greater insights and the comprehensive policies outlined can help policymakers formulate working policies to bolster green innovation, improve green energy development, and strengthen institutional frameworks toward achieving overall SDGs.

In order to address the potential presence of serial correlation and heteroscedasticity in static panel data models such as Pooled Ordinary Least Square (Pooled OLS), Fixed Effect (FE), and Random Effect (RE) models, the study employed Panel Fully Modified Ordinary Least Squares (FMOLS) and Panel Dynamic Ordinary Least Squares (DOLS) methodologies to evaluate the influence of value-added capital and its specific components - human capital, structural capital, and capital employed - on the performance of banks in Cambodia. The results of the research revealed that intellectual capital significantly impacted the return on assets in a positive manner. Specifically, human capital and capital employed were recognized as crucial elements in determining this connection. Both the FMOLS and DOLS estimation techniques produced reliable outcomes, showing positive slope coefficients that were deemed statistically significant at the 1% level. Conversely, the impact of structural capital on bank performance produced diverse results. While the determined slope was considered extremely significant at the 1% level through the FMOLS technique, the findings were inconclusive. More precisely, the projected coefficient showed a positive value when applying the FMOLS approach, but displayed a negative value when using the DOLS method.

ABSTRACTThis study explores the empirical validity of the Feldstein-Horioka puzzle for China in the presence of structural breaks. As such, we employ a recently proposed multiple-break cointegration test. Once the existence of the cointegration between domestic savings and investment is ensured by allowing for endogenous structural breaks, Fully Modified Ordinary Least Squares (FMOLS) and Dynamic Ordinary Least Squares (DOLS) estimation procedures are implemented to obtain reliable inferences. Empirical results reveal that the relationship between Chinese domestic savings and investment has undergone some major changes. More specifically, with the introduction of managed floating exchange rate regime, a substantial reduction is observed in the almost unitary saving retention coefficient of the fixed exchange rate period. Furthermore, the correlation has experienced a slight increase since 2009, which coincides with the worldwide protectionist policies adopted in the depth of the global financial crisis.

High technology product export is emerging as one of the issues that economists have discussed frequently in recent years. Increasing the high-tech product export performance provides a competitive advantage in international trade for countries. To this extent, this study aims to determine the impact of high technology product export on economic growth for Turkey over the period 1990-2019. For the empirical analysis, Hatemi-J (2008), Gregory and Hansen (1996) Fully Modified Ordinary Least Squares (FMOLS), DOLS, and Canonical cointegration regression (CCR) methods are utilized. According to the Hatemi-J cointegration test, there is a long-term relationship between high-technology product export, fixed capital formation, and economic growth, yet a structural break was detected for 2008. In addition, the Gregory and Hansen test result also confirms the cointegration relationship under structural breaks for 2003 and 2006. FMOLS, DOLS, and CCR long-term coefficient test results indicate that high technology product export positively impacts economic growth. The fundamental policy recommendation of this study is to increase financial resources to boost high-tech exports and thus economic growth.

Poverty and inequality have become persistent challenges in African countries, hindering sustainable development and equitable economic growth. Against this backdrop, the Nigerian government introduced social cash transfer (SCT) programmes to provide targeted financial assistance to vulnerable populations and foster inclusive social welfare. However, the impact has been somewhat indefinable given the continued increase in poverty and inequality levels in Nigeria. Thus, this present study focuses on the effect of SCTs on poverty, inequality, and macroeconomic instability in Nigeria using secondary data for the periods of 1984 to 2021. The results of the Dynamic Ordinary Least Squares (DOLS) and Fully Modified Ordinary Least Squares (FMOLS) with structural breaks showed that, individually, SCTs significantly increase the levels of poverty, inequality and inflation in Nigeria, but when we considered structural breaks and moderated effects of institutional peculiarities of less developed countries such as Nigeria using control of corruption and accountability, social cash transfers reduced poverty and inequality levels as well as macroeconomic instability in Nigeria. Findings from this study reveal that SCTs have played a pivotal role in improving the well-being of beneficiaries by providing crucial financial support, which, in turn, has contributed to reducing the incidence of poverty and mitigating income disparities among households. Our findings serve as a useful benchmark for the government, policymakers, and Non-Governmental Organizations (NGOs) for evaluating the effectiveness of SCT policies and other social welfare strategies in Nigeria toward evidence-based poverty alleviation and inequality reduction strategies, given the present socio-economic challenges. JEL Classification: E02, H55, I32, M14

Synergy for climate actions in G7 countries: Unraveling the role of environmental policy stringency between technological innovation and CO2 emission interplay with DOLS, FMOLS and MMQR approaches