Dependence Of Cross Section Research Articles

Pathways to Achieving Low Energy-Poverty Problems in Central African Nations with Government Effectiveness, Technology, Natural Resources and Sustainable Economic Growth

Central African nations, just like other African nations, have serious energy poverty problems, both in the rural and urban settings. With increased energy-accessibility problems, citizens have resorted to the use of conventional fuels, causing severe environmental degradation and affecting the health systems due to pollution. In this study, we address how energy poverty is alleviated with technology, natural resources and improved institutional quality. The interplay between these factors in improving energy accessibility is not widely understood; hence, key policies are lacking in the field. The data of Central African nations for the time period from 2004 to 2021 are utilized. The data are also analyzed with the ‘Methods of Moments Quantile Regression’ technique, ensuring the correction of ‘cross-sectional dependence’ and ‘heterogeneity’ that exists. The key findings depict that natural resource rent, government effectiveness and technology help in lowering energy poverty in Central African nations. Economic growth increases energy poverty, while green finance and foreign direct investment do not present a significant effect on energy poverty. Therefore, natural resources are a blessing in improving the accessibility of energy in this region, and this is also made possible with advancements in sustainable technology and proper institutional quality.

The dynamic impact of trade openness on industrialization in Sub-Saharan Africa

ABSTRACT Few studies attempt to consider a differential effect in the relationship between trade openness and industrialization; meanwhile effects may differ in signs and magnitudes, in the short term and also in the long term. In this regard, the present work explores the dynamic impact of trade openness on industrialization for 31 sub-Saharan African countries, over the period 1990–2018. A new measure of trade openness and three main proxies of industrialization are used for the empirical statement. Unlike previous studies, the dynamic common correlated effect mean group method is used to properly address issues like heterogeneity, cross sectional dependence and structural breaks in the short- and long-term analysis. In the long run, results indicate that trade openness retards industrialization in sub-Saharan Africa. The impact of trade openness on industrialization in the short run is not significant. This results comfort the hypothesis that trade liberalization increases uncertainty and exposure to foreign shocks. In the short run, more incentives should be put in place, to boost infant industries, especially through private investment and human capital promotion. In the long run, sub-Saharan Africa should be very selective on the type of products intended for trade, in order to improve its industrialization.

Effects of Productivity, R&D and Income Inequality on Economic Growth: An Empirical Estimation Using Panel Data

Purpose: The purpose of this paper is to empirically consider the effects of Total Factor Productivity (TFP), R&D, and income inequality on economic growth using panel data covering a broad range of developing and developed countries. Methodology: Panel data on relevant variables observed between 1998 and 2018 for 29 countries were analyzed. Cross-sectional dependence and stationarity tests of the variables were performed, then panel data regression models were tested and parameters were estimated. Then, the most appropriate model was determined and model assumptions such as autocorrelation, heteroskedasticity and cross-sectional dependence of model errors were tested. In all analyses, R statistical program was used. Findings: According to the analysis results, it has been determined that while productivity and R&D variables affect economic growth positively, increasing of income inequality also affects economic growth negatively. Originality: This research fills the gap in the literature in some ways: Our analysis covers a wider range of countries in both developing as well as developed countries, and emphasizes on recent period Gini coefficients, R&D expenditures, and productivity, from 1998 to 2018. Furthermore, the results of this research will not only facilitate the economic policymakers of the countries but will also be effective in realizing how important R&D expenditures and productivity are in economic growth.

Evaluating the Impact of Energy Mix and Digital Economy on Ecological Footprint in GCC: Fresh Insight from Panel ARDL Approach

This study examines the impact of economic growth, digitalization, and energy mix on the ecological footprint in the GCC region from 2000 to 2021. Using advanced econometric techniques, including Panel ARDL, AMG, and CCEMG estimations, the research explores both short-run and long-run dynamics while ensuring robust and valid results. Pre-estimation tests, such as Cross-Sectional Dependence (CSD) and panel unit root tests, confirm that variables are free from unit root problems but exhibit CSD, emphasizing economic interdependencies in the region. Panel cointegration tests reveal long-term equilibrium relationships among the variables. The findings indicate that economic growth, non-renewable energy consumption, and population significantly increase the ecological footprint, highlighting their role in driving environmental degradation. Conversely, renewable energy and digitalization significantly reduce the ecological footprint, showcasing their potential to support environmental sustainability. Validation through AMG and CCEMG methods confirms the robustness of the Panel ARDL results. This study contributes to the understanding of how economic and energy transitions interact with ecological outcomes in resource-rich economies. The results underline the critical need for policies promoting renewable energy, sustainable urbanization, and the integration of digital technologies to balance economic growth with environmental sustainability in the GCC region.

The role of institutional quality, education and fertility in shaping female labour force participation: evidence from selected Asian countries

This study analysed the role of institutional quality, education and fertility in female labour force participation across a panel of 36 Asian nations, while also investigating the interacting impacts of these variables. The Driscoll and Kraay Fixed Effects Estimator was used to analyzed annual data from 1996 to 2021, ensuring strong and efficient results, especially in cross-sectional dependence. The findings uncovered in the research shows that fertility rates were observed to adversely affect female labour force participation in all models, although education exhibited a beneficial impact. The influence of institutional quality on female workforce participation differed markedly based on the particular institutional measure employed. The interactions between fertility rates and indices of institutional quality positively influenced female labour force participation, whereas the interaction between education and institutional quality exhibited more intricate dynamics. The report recommends a more comprehensive, context-specific policy strategy to improve female labour force participation in the region.

Unraveling the environmental Kuznets curve in IGAD countries: interplay between ecological footprint, economic growth, renewable energy, and globalization

Abstract Climate change has become a global phenomenon; hence, mitigating environmental pollution and degradation are crucial for addressing climate change consequences. A paradigm shift from fossil fuel to clean energy sources is suggested to reduce environmental pollution without compromising economic growth. This study assesses the validity of the environmental Kuznets curve (EKC) hypothesis by incorporating the impacts of renewable energy, population density, and globalization on ecological footprint in IGAD member nations. A battery of econometric techniques, such as Pedroni, Kao, and Johansen Fisher cointegration methods, heterogeneous panel methods, and Dumitrescu-Hurlin panel causality tests are utilized. Before the formal analysis, we performed a cross-sectional dependence test; and it was observed that the data are cross-sectional dependent. Hence, the second-generation unit root test is utilized which confirms that all the interested variables are stationary at the first difference I (1). The empirical results of cointegration methods indicate that explanatory variables are cointegrated into the ecological footprint in the long run. Moreover, the PMG – which provides consistent results as evidenced by the Hausman test – underscored that globalization, population density, and renewable energy mitigate ecological footprint in the long run even though renewable energy is insignificant. An increase in economic growth is associated with a deterioration of environmental pollution, while squared growth is linked to a reduction in pollution. This evidence supports the existence of the EKC theory, which posits an inverted U-shaped relationship between economic expansion and ecological footprint. Besides, unidirectional causalities are detected from ecological footprint to population density, renewable energy, economic growth, and squared economic growth but not the other way around. In light of the empirical results, several policy recommendations are proposed.

The Impact of Exchange Rate and Inflation on Economic Growth: Empirical Evidence from the MENA region using Panel Data Analysis

The volatility of exchange rates and inflation represents a critical challenge to economic stability in the MENA (Middle East and North Africa) region. This study delves into the complex relationship between these macroeconomic factors and economic growth from 2000 to 2023, with a focus on providing actionable insights for policymakers. Using a panel dataset of nine MENA countries, the research employs Feasible Generalized Least Squares (FGLS) to address issues of heteroskedasticity, serial correlation, and cross-sectional dependence, offering a robust analysis of the dynamic interactions. The findings reveal that inflation significantly hampers GDP growth, confirming that rising inflation undermines investment and creates economic uncertainty. In contrast, a more competitive Real Effective Exchange Rate (REER) fosters economic growth by improving export competitiveness, especially in non-oil sectors. Interestingly, the analysis also highlights that imports have a positive effect on GDP growth, emphasizing their role in supporting domestic production through the provision of essential goods and technologies. This study calls for targeted policy measures in the MENA region to stabilize inflation, enhance exchange rate competitiveness, and diversify exports. Such strategies are essential for sustaining economic growth and ensuring long-term economic stability.

Green knowledge production functions with latent group structures in the presence of human capital spillovers and fiscal policies

ABSTRACT The paper analyses the green knowledge production function with human capital spillovers in the context of OECD countries by using a latent group structure methodology, to address cross-country heterogeneity, in order to enrich evidence-based policymaking. In fact, the number of groups and the group membership are often unknown features in a dataset. These ‘unknowns’ are determined using a penalized regression technique, in the presence of cross-sectional dependence and nonstationarity. Substantial heterogeneity is unveiled and classified into distinctive groups with significant macroeconomic features. Modelling the green knowledge production function with latent-group structures thus reveals heterogeneous trends over green technologies patterns, with in addition Human capital and expenditure on research and development playing an important part as drivers. In an era of radical technological change and in front of the necessity to form solid coalitions to manage international public goods, the heterogeneity of countries and groups of agents is of extreme importance to better understand economic development paths, possibly correcting technology-driven divergences by national and supranational policy actions on innovation, training, environmental domains.

Early formation of supermassive black holes from the collapse of strongly self-interacting dark matter

Evidence for high-redshift supermassive black holes challenges standard scenarios for how such objects form in the early universe. Here, we entertain the possibility that a fraction of the cosmological dark matter could be ultra-strongly self interacting. This would imply that gravothermal collapse occur at early times in the cores of dark matter halos, followed by accretion. We study under which conditions on the abundance and interaction strength and structure of such ultra self-interacting dark matter the black holes resulting from the end-point of gravothermal core collapse can seed the observed, early-forming supermassive black holes. We find, depending on the velocity dependence of the self-interaction cross section, a bimodal structure in the favored parameter space, where data points to either a small collapsing dark matter fraction with a large cross section, or a large fraction and a relatively small cross section. While self-interaction cross sections with different velocity dependence can explain observations, we find that the best, self-consistent results correspond to a Rutherford-like self-interaction, typical of long-range dark-sector forces with light mediators. We discuss complementary observational probes if this scenario is realized in nature, focusing especially on the expected intermediate mass black holes predicted to exist in smaller galaxies.

Empirical Analysis of the Impact of External Debt on Capital Formation in Sub-Saharan Africa: The Moderating Role of Institutional Quality

This study examines the nexus between external debt and capital formation in sub-Saharan African countries, with a focus on the role of institutional quality as a moderator. The analysis covered from 1998 to 2023, using two-step system GMM, panel quantile regression, dynamic threshold estimator and cross-sectional dependence test. The results showed that external debt has a negative impact on capital formation, but this effect is moderated by institutional quality. The study also found that the benefits of debt can be realized in sub-Saharan Africa when the average institutional quality is above a certain threshold. Specifically, countries with strong institutional quality can use debt effectively to promote efficient resource allocation and attract further investment. Therefore, policymakers are encouraged to implement debt management strategies and institutional reforms, such as reducing corruption, improving effective governance, and strengthening the rule of law, to ensure transparency in debt utilization and maintain a sustainable debt level. This will create a more favorable environment for both domestic and foreign investment.

Analyzing the influence of structural changes on CO2 emissions in OECD countries: Employing panel cointegration techniques

Structural transformations in OECD countries significantly influence carbon dioxide (CO2) emissions, affecting economic and social dimensions. These transformations encompass changes in industrial composition, technological progress, energy consumption patterns, and policy frameworks. This research investigates the impact of such structural shifts on CO2 emissions across a panel of 38 OECD countries between 2000 and 2021, using panel cointegration techniques to ensure robust analysis. The study confirms the presence of cross-sectional dependence among countries and establishes long-run cointegration relationships. Results from Fully Modified Ordinary Least Squares (FMOLS) and Dynamic Ordinary Least Squares (DOLS) models indicate that renewable energy, advancements in information and communication technology, and structural changes significantly reduce CO2 emissions. In contrast, economic growth, reliance on non-renewable energy, and institutional quality are linked to higher emissions. However, estimates derived from Panel-Corrected Standard Errors (PCSE) and Mean Group Panel (MGP) methods differ from those of FMOLS and DOLS, underscoring potential methodological variances in evaluating these relationships. This study highlights the pivotal role of structural changes in emission reduction strategies, while also emphasizing the importance of methodological choices in policy analysis. The findings provide valuable insights for policymakers aiming to align economic growth with environmental sustainability within OECD countries. Moreover, the research stresses the necessity of incorporating structural changes into long-term climate strategies to ensure their effectiveness. Future studies could expand the analysis by integrating more recent data and exploring non-linear relationships to refine policy recommendations further.

On the Financial Determinants of the Piotroski F-Score: An Analysis of Borsa İstanbul Firms

This study investigates the factors effective on Piotroski F-score which is a proxy for financial health of the firms. Manufacturing firms operate in Borsa İstanbul are considered in the analyses with using the time period of 2017:Q1-2024:Q3. This study contributes to the literature by identifying financial determinants of Piotroski F-Score in Türkiye. Driscoll and Kraay (1998) estimator is used with fixed effect panel regression in order to handle issues of heteroscedasticity, cross sectional dependency and autocorrelation in the model. Altman Z-score, return on invested capital, market to book ratio, Tobin’s Q ratio and Beneish M-score significantly impact Piotroski F-score. According to the regression results, companies with lower financial distress risks (higher Altman Z-score) are expected to have better financial health. Similarly, those with improved return on invested capital tend to exhibit stronger financial health. Moreover, firms with higher market-to-book ratios are generally more profitable, potentially leading to higher Piotroski F-scores, indicating better financial health. A higher Tobin’s Q value suggests greater performance expectations from the company, which correlates with higher financial health. Conversely, a negative relation between the Beneish M-score and Piotroski F-score implies that companies with a higher likelihood of earnings manipulation tend to have weaker financial health.

How Green Growth, Institutional Quality and Globalization Impact Environmental Sustainability in the selected OBOR Economies: The Role of Energy Efficiency

The quality of the environment is gradually declining dramatically due to mankind's activity, resulting in a threat to the sustainability of our ecosystem. However, this study investigated the problem by considering effective indicators such as green growth, institutional quality, globalization, and energy efficiency. Therefore, this study explores the nexus between green growth (GG), institutional quality (IQ), and globalization (Glb) with environmental sustainability (CO2). The study also includes Industrialization (Ind) and Trade Openness (ToP) as control variables. Moreover, the study contributes to the literature by predicting the net moderating potential effect of energy efficiency (EE) improvements on environmental sustainability. The study employs the 18-year data for the period 2005 to 2022 from 96 selected OBOR countries. The data sorting accounted for cross-sectional dependence (CSD), the Breusch-Pagan LM, Pesaran scaled LM, and Pesaran CD, 2007 tests were used and similarly for Slope Coefficient Heterogeneity (SCH), Pesaran, Yagmata. 2008 tests were used. The second generation method, Pescaran tests namely CIPS and CADF were used to check the stationarity of the data. This study employed the PMG-ARDL model for the data analysis. MG, AMG, and DFE estimates were also performed to check the robustness of the results of the model that unveil the long-run as well as short-run relationships. The long-run results revealed that GG, IQ, Ind, and ToP have a positive and significant relationship with CO2 whereas IQ has an inverse relationship. Similarly, in the short run GG, and Ind are positively significant with CO2. The moderation effect observed on GG and CO2 nexus is insignificant whereas the moderation effect on IQ and Glb has been seen as significant with CO2 nexuses. The finding indicates that when setting sustainable goals, it must review the determinants of CO2 emission specifically for OBOR economies, as environmental sustainability is more challenging than reducing pollution.

Sustainable development strategies in enterprise management: Innovation and responsibility

This study seeks to determine the relationship between corporate social responsibility, innovation, environmental management, the regulatory environment, and digital infrastructure on sustainable enterprise performance globally from 2005–2023. Pesaran's cross-sectional dependence test indicated an issue of cross-sectional dependency among the series, so the second-generation unit root test of the cross-sectional augmented IPS (CIPS) presented by Pesaran was applied. The unit root test showed that few variables are stationary at level, while most are stationary at first difference, I(0)/I(1). The Westerlund cointegration test was applied, and the results confirmed a long-run relationship among the variables. A mixed order of integration and the existence of cointegration are recommended for the use of cross-sectional autoregressive distributed lag (CS-ARDL). The CS-ARDL results show that corporate social responsibility, innovation, the regulatory environment, and digital infrastructure have a significantly positive relationship with sustainable enterprise performance. In contrast, management of the environment has a significantly negative relationship with sustainable enterprise performance globally. It is recommended that the policy on why organizations should employ sustainable practices states that it is necessary to encourage creativity, invest in better digital infrastructure, and implement more comprehensive legal regulations globally. Policymakers from lower-income and middle-class economies must invest in infrastructure development.

The Impact of Greenhouse Gas Risks on Stock Market Returns: An Application on G7 Countries

This study investigates the impact of greenhouse gas risks on stock market returns. While carbon dioxide, methane, and nitrogen gas emissions are taken as greenhouse gases; the stock market benchmark indices of the G7 countries, which are defined as the seven most developed countries in the world, are taken as the basis for the stock market. Due to data limitations, the scope of the current study has been set as the 2000-2020 time period and the panel data analysis method has been applied. In this study, endogeneity and multicollinearity problems, cross-sectional dependence, and homogeneity/heterogeneity tests are tested respectively, and the model is estimated by performing unit root analysis in line with the findings obtained. The results of the analyses indicate that there are no endogeneity and multicollinearity problems among the variables used in the study, there is cross-sectional dependence, the variables are stationary at level I(0), there are problems of autocorrelation in the panel and it is appropriate to estimate the model with the fixed effects model. As a result of the estimation with the robust model estimator that solves the problem of autocorrelation, it is found that carbon dioxide and methane have a negative effect on stock market return, while nitrogen gas has a positive effect on stock market return. These findings suggest that investors reflect their concerns about climate change to stock markets through greenhouse gas emissions.

Is income inequality – conflicts nexus moderated by the quality of governance? Insight from sub-Saharan Africa

PurposeThe aim of this study is twofold. First, the study examines the effect of income inequality on conflicts in sub-Saharan Africa (SSA). Second, the study unveils the role of governance in income inequality – conflicts in sub-Saharan Africa (SSA).Design/methodology/approachThe study adopts the ordinary least square estimation technique (OLS) as the baseline model. However, given that so many panel data models exhibit some form of cross-sectional and temporal dependence, the study also adopts the Driscoll–Kraay cross-sectional and spatial-consistent covariance matrix estimator.FindingsThe study finds that income inequality fuels conflicts in SSA. Similarly, the results show that an increase in the quality of governance reduces conflicts. Importantly, the result shows that the quality of governance mitigates the negative effects of income inequality on conflicts in SSA. The research and policy implications are discussed.Originality/valueThe study examines the role governance in income inequality – conflicts nexus in SSA.Peer reviewThe peer review history for this article is available at: https://publons.com/publon/10.1108/IJSE-01-2024-0055

Life expectancy and health care spending in South Asia: An econometric analysis

Affordable health care is often a result of increased government spending on the health sector. Out-of-pocket expenses remain the primary health care funding source in many South Asian nations. Lack of adequate public funding for health services, difficulty in obtaining health insurance, and high out-of-pocket costs can result in indebtedness, reductions in actual consumption, and decreased access to health care services. The study examines life expectancy and health care spending in South Asian countries. The life expectancy of South Asian countries is studied as a health outcome in relation to health care spending, gross national income per capita, and expected years of schooling. This study is based on secondary data from World Bank statistics that covers eight South Asian countries from 2000 to 2021, for a total of 176 pooled time series and cross-sectional observations. The data were analysed using econometric models, including the cross sectional dependency test, panel unit root test, panel co-integration test, vector error correction model, pair-wise Granger causality test, and Wald test statistics. The vector error correction model results indicate that health care spending, anticipated years of schooling, and gross national income per capita have a long-run association with health outcomes. Health care spending, per capita gross national income, and expected years of education have all greatly enhanced life expectancy in South Asian countries. An effective health strategy is necessary to increase people’s healthy life expectancy and well-being. To accomplish this, government may need to promote school enrolment to help people become more health literate and aware of their health outcomes. As a result, persons with more years of schooling have better health, higher levels of well-being, healthier habits, and ultimately, a longer life expectancy. This study will provide an important insight to policymakers in improving health outcomes through targeted and sustained health care spending in South Asia.

Greening the Gulf: A Deep-Dive into the Synergy Between Natural Resources, Institutional Quality, Foreign Direct Investment, and Pathways to Environmental Sustainability

Environmental quality is a global concern, especially in Gulf Cooperation Council (GCC) countries where abundant mineral resources, economic growth, and globalization have strained the environment through urbanization and resource exploitation. This study examines the impact of globalization (GLOL), urbanization (URBN), natural resource extraction (NRER), institutional quality (INSQ), and foreign direct investment (FDI) on environmental quality in GCC countries from 1999 to 2021. Cross-sectional dependence (CSD) was assessed using the Lagrange Multiplier (LM) and cross-dependence (CD) techniques, and stationarity was confirmed with the Levin–Lin–Chu test. The Augmented Dickey–Fuller (ADF) co-integration test verified long-term relationships, and Pooled Mean Group Autoregressive Distributed Lag (PMG-ARDL) methodology assessed short- and long-term effects. Our findings show that FDI, GLOL, and INSQ have negative long-term impacts on environmental quality, while NRER and URBN are beneficial. In the short term, FDI and INSQ improve green quality, while GLOL, URBN, and NRER have detrimental effects. Policy recommendations include discouraging FDI in non-renewable projects, promoting sustainable FDI, addressing income inequality to improve environmental quality, and investing in urban development to reduce ecological footprints (ECFTs) and enhance environmental quality in GCC countries.

Domestic and External Drivers of Inflation in Oil Importing Developing Countries

This paper explores inflation drivers in 12 oil-importing developing economies, focusing on domestic and external drivers, such as monetary policy rate, government expenditure, global oil prices, exchange rate, imports, global food prices, and other factors. The study aims to establish a hierarchy of these drivers from the most to the least significant, which is essential for a better implementation of anti-inflationary policies in oil-importing developing countries. Using Seemingly Unrelated Regression (SUR) model and second-generation panel unit root test to handle cross-sectional dependence, and applying Dumitrescu-Hurlin panel Granger causality approach to confirm SUR outcomes, this research paper revealed for the period between 2000Q1, and 2023Q2 that lagged inflation is the most important driver of current inflation, supporting the theoretical concept of inertial inflation. Unexpectedly, this study showed that monetary policy rate is positively impacting inflation, confirming the presence of the price puzzle. Additionally, monetary base doesn’t have any significant impact on aggregate price level, meaning that the inflation is not a monetary phenomenon for the studied countries. Producer prices, used as a proxy for domestic supply shocks, seemed to have a positive and significant effect on inflation. Government expenditure, trade openness, and global oil prices have notable effects. Even if all the studied countries are oil importers, the impact of oil prices on inflation is mitigated by subsidies and price controls. Finally, inflation is negatively affected by imports and exchange rate. The study underscores the necessity for new central bank tools adapted to these countries context, monetary and fiscal policies coordination, a strategic use of subsidies, and an integrated policy to improve market competition.

Exploring the Relationship between CO2 Emission, Economic Growth, and Energy Consumption at Aggregate Level: A Panel Data Analysis

This article explores the relationship between CO2 emissions, economic growth, energy consumption, and, other control factors for the eight highest CO2-emitting countries (USA, Russia, Iran, China, Germany, India, Japan, and Canada) in 1995-2023. The m objective of the study is to determine how economic growth (GDP), energy consumption (EC), industrial production (IP), and other macroeconomic factors influence CO2 emissions. Using panel data analysis, this study applies various econometric techniques, including fixed and random effects models, Multicollinearity tests, heteroscedasticity tests, and cross-sectional dependence tests. Independent variables include GDP, Total energy use, Industrial output, Density of the population, and Trade while the dependent variable is CO2 emission. The results suggest that energy consumption positively correlates with CO2 emission, where, for each unit of energy consumption, CO2 emission increases by 0.0024 units. The outcomes also reveal a negative correlation of international trade with CO2 emissions implying that trade inhibits emissions. However, the relationship between GDP and, carbon emissions was formed to be statistically insignificant. Population density and industrial production have mixed effects on emissions, with industrial production showing a positive impact. The study emphasizes the importance of adopting cleaner energy sources, enhancing energy efficiency, and considering trade policies that might reduce emissions. The findings suggest that transitioning from coal and oil to cleaner energy sources, such as natural gas, could be an effective strategy for reducing carbon emissions without significantly hindering economic growth. The study provides valuable insights for policymakers in high-emission countries aiming to balance economic development with environmental sustainability.