Dynamic Nexus Research Articles

Sustainable Synergy: Static and Dynamic nexus between ESG and BRICS Equity Markets

Sustainable finance has become the new frontier in global investments, redefining success beyond mere profit margins. For the BRICS economies, this paradigm shift presents both a challenge and an opportunity to reimagine their role in the evolving world of responsible investing. Therefore, this study examines the connectedness between environmental, social, and governance (ESG) leader indices and the BRICS equity markets using the TVP-VAR model. Our return and volatility connectedness results demonstrate a moderate level of transmission between ESG and conventional equity markets. Moreover, the system integration increased substantially during COVID-19 compared to pre-COVID-19, highlighting the strong impact of global events on financial market behavior. ESG (conventional) stocks predominantly emerge as net transmitters (recipients) of return and volatility shock to the system. The dynamic analysis reveals a notable increase in system connectedness, exhibiting increased transmission during an uncertain market environment. Our portfolio analysis suggests that investors should increase their investment in BRICS equity markets during COVID-19 to get higher diversification benefit, however hedging ESG with conventional stocks becomes expensive (higher hedge ratio) during a turbulent period. These results have substantial implications for portfolio management, suggesting that ESG can effectively mitigate risk and optimize portfolio performance.

Dynamic nexus between urban digitization and pollutant discharge: RBC theory and empirical evidence from China

An economy undergoing digitalization may experience environmental degradation. This study aims to explore the potential environmental consequences of digitalization. First, the paper develops a real business cycle model that incorporates pollution constraints and endogenous digital capital investment. Second, the study identifies three stages of endogenous digital capital accumulation: resource mismatch, scaling, technology spillovers, and eventual monopolization. Correspondingly, environmental changes unfold in three stages: degradation, subsequent improvement, and regression back to deterioration. Finally, the empirical analysis draws on the process of digital capital accumulation across Chinese cities, revealing that while digital capital accumulation initially contributed to environmental degradation, technology spillovers could help mitigate these effects. Furthermore, the study highlights the differing levels of digital capital across cities, placing them at various stages of development. It underscores the critical need for policymakers to carefully balance the scale of digital capital, as both insufficient and excessive accumulation can exacerbate environmental challenges. This analysis offers valuable insights for policymakers seeking to foster digital development while mitigating environmental pollution.

Unraveling the dynamic nexus: Green cryptocurrencies and their role in sustainable market evolution

This study explores the intricate relationships between green cryptocurrencies, traditional energy, and renewable energy stock markets using an innovative approach that combines time-frequency spillover analysis with cross-quantile dependence methodologies. Our findings show a complicated network of market interactions that change over time and vary widely. In the short term, green cryptocurrencies and new energy equities emerge as pivotal drivers of market dynamics, showcasing their growing influence within traditional energy sectors. This interplay, however, is marked by significant temporal variations, with green cryptocurrencies demonstrating remarkable resilience to external shocks and increasingly becoming transmitters of volatility over time. The cross-quantile dependence analysis further highlights the conditional nature of these interactions, shedding light on the nuanced impact of green cryptocurrencies across different market conditions, particularly during periods of extreme market stress. These insights underscore the transformative role of green financial instruments in the context of the energy transition and sustainable development, offering important implications for investors, policymakers, and the strategic orientation of financial markets toward sustainability.

Evaluating the sophisticated digital assets and cryptocurrencies capacities of substituting international currencies in inflationary eras

This study investigates the dynamic nexus that major international currencies (US dollar, Euro, Japanese yen) exhibit with cryptocurrencies and highly innovative digital money (DeFi and NFT assets) during inflationary periods such as the Russia-Ukraine conflict (from 14 December 2021 until 1 March 2024). The Quantile Vector Autoregressive methodology as in Cunado et al. (2023) and daily data are adopted to investigate the net joint extended dynamic connectedness and network connectedness at lower and upper quantiles. Conventional international currencies act as hedgers against shocks while major cryptocurrencies are only modest generators with Ripple being an influential absorber of effects. DeFi mainly serve for counteracting losses from conventional investments in bear or bull markets and Maker is the most prominent generator of spillovers while NFTs mostly rely on a few very strong leaders –Gala being by far the strongest- to have an impact, imitating Bitcoin in the early cryptocurrency era.

Retraction Note: Dynamic nexus between transportation, urbanization, economic growth and environmental pollution in ASEAN countries: does environmental regulations matter?

Retraction Note: Dynamic nexus between transportation, urbanization, economic growth and environmental pollution in ASEAN countries: does environmental regulations matter?

Dynamic nexus between Sharia and ESG indices and ETFs in India

Dynamic nexus between Sharia and ESG indices and ETFs in India

Investigating the dynamic nexus between fiscal deficit and inflation: empirical evidence from BRICS economies

PurposeThe debate surrounding whether fiscal actions are responsible for inflation has been a central focus in macro-public finance. In this regard, the present study makes a novel attempt to assess the nexus between fiscal deficit and inflation in the presence of output growth, trade openness and money supply using a balanced panel dataset from Brazil, Russia, India, China, and South Africa (BRICS) economies.Design/methodology/approachIn conducting the empirical analysis, the study initially addresses the issues of cross-section dependency, heterogeneous slope coefficients and nonstationarity. The assessment of long-run cointegration was carried out by using novel third-generation cointegration tests introduced by Westerlund and Edgerton (2008) and Banerjee and Carrion-i-Silvestre (2017). The authors utilise the advanced and latest estimation technique, the cross-section augmented autoregressive-distributed lag (CS-ARDL) model, for long-run and short-run analyses. Finally, to investigate the causal relationship between fiscal deficit and inflation within a panel framework, this study employs the novel test (JKS) introduced by Juodis et al. (2021).FindingsUsing recent econometric tests, the study validates the existence of cross-sectional dependency and slope heterogeneity. The results of the third-generation cointegration test by Westerlund and Edgerton (2008) and Banerjee and Carrion-i-Silvestre (2017) show that the variables are cointegrated in the long run. The CS-ARDL model revealed a positive relationship between inflation and fiscal deficit. The implication of this finding suggests that the fiscal deficit plays an inflationary role in BRICS economies. Finally, the JKS causality test results found a bi-directional causal association between fiscal deficit and inflation.Practical implicationsThe findings suggest several significant policy recommendations. It is recommended that a well-executed fiscal consolidation strategy be adopted to attain sound fiscal health and lower inflation. A disciplined fiscal approach is not only vital for effective monetary policy but also essential for maintaining macroeconomic stability. Monetary authorities must establish credible practices to effectively manage the macroeconomic system, and policy stances should align with the specific needs of the economy. The bidirectional causality between fiscal deficit and inflation suggests that relying solely on fiscal measures is inadequate for managing inflationary pressures or stabilising fiscal balances. Thus, a more comprehensive approach is required, including measures such as sustaining economic growth, reducing import dependency, diversifying exports and ensuring exchange rate stability.Originality/valueNumerous empirical studies have explored the link between fiscal deficit and inflation. However, most research studies within BRICS economies have focused on individual countries rather than considering the group as a whole. This limited scope may fail to capture the unique characteristics and interactions within these economies. To the best of the author’s knowledge, the present study is the first attempt to examine the issue from a panel perspective across BRICS economies. The methodological novelty of the present study is that it represents the first attempt, at least within emerging market economies, to investigate the nexus between fiscal deficit and inflation using second- and third-generation econometric models. From a policy perspective, the authors highlight that BRICS economies must prioritise fiscal discipline through measures such as reducing unproductive expenditure and improving tax collection. Close coordination between fiscal and monetary authorities is essential to ensuring that monetary policy supports fiscal consolidation efforts while maintaining price stability.

Harnessing nucleotide metabolism and immunity in cancer: a tumour microenvironment perspective

The tumour microenvironment (TME) is a dynamic nexus where cancer cell metabolism and the immune system intricately converge, with nucleotide metabolism (NM) playing a pivotal role. This review explores the critical function of NM in cancer cell proliferation and its profound influence on the TME and immune landscape. NM is essential for DNA and RNA synthesis and is markedly upregulated in cancer cells to meet the demands of rapid growth. This metabolic rewiring fuels cancer progression, but also shapes the TME, impacting the function and viability of immune cells. The altered nucleotide milieu in the TME can suppress immune response, aiding cancer cell evasion from immune surveillance. Drug discoveries in the field of NM have revealed different therapeutic strategies, including inhibitors of nucleotide synthesis and drugs targeting salvage pathways, which are discussed thoroughly in this review. Furthermore, the emerging strategy of combining NM‐targeted therapies with immunotherapies is emphasised, particularly their effect on sensitising tumours to immune checkpoint inhibitors and enhancing overall treatment efficacy. The Human Genome Project paved the way for personalised medicine, countering the established ‘one size fits all’ approach to cancer treatment. Advances in understanding the TME and NM have spurred interest in personalised therapeutic strategies. This review highlights the potential of leveraging individual tumour metabolic profiles to guide treatment selection, aiming to optimise efficacy and minimise adverse effects. The strategic importance of targeting NM in cancer therapy and its synergistic potential with immunotherapies offers a path towards more effective and personalised cancer treatments.

The dynamic nexus between economic growth, renewable energy use, urbanization, industrialization, tourism, green supply chain management, and CO2

Since 2012, China has pursued an “ecological civilization” policy to promote green energy, increase environmental protection, and transition to more sustainable growth models. The complicated positive trends in energy consumption, more sustainable economic growth, and ecological management are obscured by China's persistent, significant dependence on fossil fuels, particularly coal. The study aims to analyze how renewable energy use in China affects carbon dioxide emissions and how those impacts change over time, as well as urbanization, industrialization, tourism, and green supply chain management. The DOLS dynamic system method used historical data from 1995 to 2022. The DOLS results show a positive and statistically significant economic growth coefficient in the long term, suggesting that an increase of only one percent in CO₂ emissions rise would be proportional to a surge in economic growth.Furthermore, using renewable energy sources correlates with long-term sustainability negatively and significantly. The results show reducing CO₂ emissions and boosting renewable energy use by 1 %. Furthermore, the long-run coefficients for industrialization and urbanization are positive and statistically significant, indicating that a 1 % increase in either component results in a comparable increase in CO₂ emissions. Sustainable logistics and tourism have negative and statistically significant coefficients, meaning that a one percent increase will gradually decrease carbon dioxide emissions. The estimated findings hold up when using other estimators, such as the commonly used co-integrating regression (CCR) strategy and fully modified least squares (FMOLS). When Granger causality is coupled, the test also catches the variables' causal link. test. To achieve environmental sustainability, the essay suggests using robust regulatory policy tools to curb ecological deterioration.

Modeling the dynamic nexus between climate change, ICT, and agriculture in sub-Saharan Africa: a panel quantile ARDL

Modeling the dynamic nexus between climate change, ICT, and agriculture in sub-Saharan Africa: a panel quantile ARDL

Unraveling the dynamic nexus between economic complexity, renewable energy consumption, energy imports, and environmental quality in Pakistan

Unraveling the dynamic nexus between economic complexity, renewable energy consumption, energy imports, and environmental quality in Pakistan

Dynamic nexus between natural resource rents, economic growth, and environmental quality: A comparative study between China and the US

AbstractEconomic development and environmental sustainability have recently become global priorities. This study utilizes the nonlinear autoregressive distribution lag model (NARDL) to investigate the asymmetric effects of natural resource rents on economic growth and environmental quality in China and the United States from 1970 to 2020. The findings indicate that natural resource rents exert asymmetric effects on economic growth and environmental quality in both countries; however, the impact patterns differ between the two countries. In the short term, a decrease in natural resource rents significantly increases GDP per capita in the US, while an increase in natural resource rents has no effect. Moreover, natural resource rents do not influence the ecological footprint in the US. By contrast, China's GDP per capita remains unaffected by natural resource rents, while the ecological footprint is significantly influenced by both positive and negative changes in natural resource rents, exhibiting asymmetric impacts. In the long run, an increase in natural resource rents significantly impacts both GDP per capita and the ecological footprint in the US, while a decrease only impacts the ecological footprint. By contrast, both increases and decreases in natural resource rents impact per capita GDP and the ecological footprint in China. These findings highlight the importance of tailoring country‐specific policies to facilitate sustainable economic development and enhance environmental quality.

Multi-actor approach to manage the water-energy-food nexus at territory scale

This study presents an innovative water-energy-food nexus (WEFN) generic multi-actor multi-level framework that simulates dynamic nexus systems and generates optimal resource management schemes and land-use allocation scenarios. The framework combines operational integrated multi-agent based simulations, dynamic agro-hydrological and renewable energy generation units (solar and wind) models and multi-criteria decision-making methods. It has been applied to a case study area of 800 km2 located downstream the Aveyron watershed, in Southwestern France. Local and regional strategic multi-criteria decision-making settings are compared. Under the local decision-making setting land-use allocation decisions are taken at agricultural parcel level whereas under the regional decision-making settings a single land allocation decision is taken for the whole territory. Possible land allocations are either crop rotations allocations, renewable energy generation units allocations or a mix of both. The framework is useful to generate scenarios of spatial allocations of renewable energy production units in an agricultural watershed facing water scarcity.

Dynamic nexus among fossil fuels utilization, economic growth, and urbanization: a tri-regional selected countries analysis.

There are worldwide growing concerns about environmental issues such as global warming and climate change. Moreover, it is expected that there will be regional differences in environmental issues. Therefore, this study focuses on a tri-regional comparison: America, Europe, and Asia-Pacific. Previous literature has paid less attention to exploring regional comparisons while considering regional heterogeneity. Against this backdrop, this study delves into the dynamic relationship between fossil fuel utilization, economic growth, globalization, urbanization, and CO2 emissions to understand the environmental implications of these interconnected factors. The study period spans from 1990 to 2021. Additionally, it employed rigorous tests to confirm cross-sectional dependence and data heterogeneity, following methodologies proposed by Pesaran (2004, 2015) and Pesaran (2007), utilizing the CS-ARDL panel cointegration methodology by Chudik and Pesaran (2015). The results confirm long-term significant relationships among OC, NGC, FDI, and UR variables in both combined panels, with and without regional dummies. However, GDP and COC become insignificant in the long run in the dummy variables regression. Furthermore, the regional dummies were found to be negative but remain insignificant, possibly due to heterogeneous effects or unobserved factors influencing each region independently. Analysis by region reveals predominant coal consumption in Asia, higher oil consumption in America, and greater gas consumption in Europe. Economic growth and CO2 emissions are positive in Asia and America but negative in Europe, aligning with theories prioritizing growth over environmental concerns in Asia and America, and advocating for renewable energy adoption in Europe. Urbanization increases energy demand and emissions, supporting the environmental revolution theory, while FDI holds the potential to reduce CO2 emissions, as per the endogenous growth theory.

A Panel Analysis on the Nexus between Financial Development, Oil Production, and Trade-Openness and Its Impact on Sustainable Economic Growth: Evidence from Selected Arab Economies

In accordance with the United Nations Sustainable Development Goals agenda for decent and sustainable economic growth highlighted in the UNSDGs-8, several economies over the years have been on the quest for drivers for decent and sustainable economic growth, of which the Arab bloc is no exception. To this end, the present study draws strength from the classical growth model while exploring the dynamic nexus between oil production and economic growth while accounting for other key growth drivers like gross capital formulation accumulation, labour, trade openness, and financial development for a balanced panel of selected Arab economies. To operationalise the study objectives, the present study leverages second-generational panel econometric approaches. The econometrics techniques applied circumvent the cross-sectional dependency and slope heterogeneity in the sampled bloc. For co-integration analysis, the Westerlund’s panel co-integration test affirms a long-run equilibrium relationship between the study’s outlined variables. Furthermore, for long-run estimates, the present study leverages the common correlated effects mean group (CCEMG) methodology and the augmented mean group (AMG) method for robustness and soundness of the results and coefficients. The present study corroborates the trade-induced growth hypothesis in the entire panel at a p < 0.001 statistical level, which resonates with the mercantilism school of thought. Additionally, the present study also affirms the Solow–Swan hypothesis, where gross capital formation accumulation and labour drive economic growth. Interestingly, the panel bloc shows that oil production is a key driver to the nation’s economic growth, at a p < 0.05 statistical level. However, from a policy standpoint, there are policy suggestions for diversification of the Arab economies to move from a mono-economy dependent on oil production to other sectors like service, industry, and manufacturing, which require labour, capital accumulation, and more. Further policy caveats are outlined in the concluding section.

Unveiling the dynamic nexus between corporate social responsibility, innovations and financial performances in 21st-century Indian start-ups

Purpose With the rapid rise in the number of start-ups, corporate social responsibility (CSR) can principally contribute to the nation’s socioeconomic development, making it more critical. This study aims to explore the effect of sustainability practices on a firm’s performance with competitive advantage (CA) and innovation (INN) as the mediating variable. Design/methodology/approach An exhaustive literature review was done to identify the constructs relationship for this study, and a questionnaire was used to gather the data from the start-up owners. In total, 400 samples were received, and partial least squares structural equation modeling was used for testing and validating the proposed hypotheses. Findings CSR and financial performance (FP) have a significant relationship. According to this study’s findings, innovation and CA substantially mediate the relationship between a firm’s FP and CSR. This study will highlight how CSR practices stimulate organizational creativity, problem-solving and strategic thinking. It will also demonstrate how CSR can foster a culture of innovation that generates long-term value and positively impacts FP. Practical implications It will aid in improving the knowledge of start-up owners that CSR is more than just pure altruism or philanthropy; instead, it must be promoted strategically as an investment that boosts productivity and creativity while also bringing overall financial benefits to the company. It will ultimately enhance the start-ups’ ability to improve the economy and society. Furthermore, this study holds the potential to inform policy discussions and recommendations for fostering responsible business practices in the Indian start-up ecosystem. Policymakers can benefit from insights into how regulations and incentives can be designed to encourage start-ups to adopt CSR practices that not only fulfill legal obligations but also contribute to their CA and FP. Originality/value This study provides empirical validity to establish linkages between sustainability measures on the FP concerning start-ups that were not considered in the prior studies. Identifying the current conceptual framework and CA and Innovation as the two major factors influencing CSR in Indian enterprises is a novel contribution. This study aims to fill the research gap. By unravelling the intricate dynamics between CSR, FP and CA, the research contributes to the understanding of how start-ups can navigate the complex interplay of social responsibility and business success in the Indian context.

The Growth Effect of Foreign Direct Investment: Evidence from Time-Frequency Analysis

The impact of FDI inflow on the economy of the host country had not been clearly defined, especially in the empirical literature. Most of the empirical results from past studies are distorted by model misspecification and endogeneity problems. To find a cure for these deficiencies, this study uses an unconventional methodology called wavelet coherence to examine the nexus between FDI inflows and per capita income growth in three African countries (The Gambia, Ghana, and Senegal. Wavelet coherence is a localized correlation in time-frequency space that examines the dynamic nexus between two time series. Most traditional econometric methods that were used to study the nexus between FDI inflows and income assumed that the series are stationary, however, most economic time series are not stationary, hence, this makes most traditional methods ineffective in finding the nexus between FDI and income. The use of wavelet coherence can overcome this challenge because it does not require the assumption of stationarity of the data.The empirical results of the study showed that the impact of FDI inflows depends on the degree to which the FDI is a complement or a substitute for domestic investment. Senegal where FDI complements domestic investment in enhancing growth derived more benefit from FDI inflows than The Gambia where FDI inflows substitute domestic investment and Ghana where FDI inflows had no impact on domestic investment. The causality between per capita income growth and per stock of FDI inflows runs from per stock of FDI inflows or the two series move together.

Unlocking sustainability: the dynamic nexus of organizational support, identification, and green HRM practices in cultivating pro-environmental excellence

PurposeThere is a growing need to promote and practice sustainable HRM to foster greener organizations with trained employees who have an attitude and behavior to preserve depleting resources. The purpose of this study is to highlight the importance of sustainable green human resource management (Green HRM) practices along with organizational identification (OI) as a mediating factor and perceived organizational support (POS) as a moderating factor.Design/methodology/approachQuantitative methodology was used, and the data were collected from 311 employees working in telecommunication organizations located in the twin cities of Rawalpindi and Islamabad, Pakistan. Results of the study are based on the structural equation modeling technique using Smart-PLS.FindingsFindings revealed that OI proved to be a significant positive mediator between Green HRM and organizational citizenship behaviors for the environment. POS also proved to be a significant moderator on the relationship between Green HRM and OI.Research limitations/implicationsThe study is limited to the two cities of Pakistan; future studies can focus on more cities so that the results can be more generalized.Practical implicationsThis study will especially be useful for HR practitioners to develop mechanisms to initiate and encourage sustainable HR practices.Social implicationsOrganizations’ positive position is established through the inculcation of green activities among their employees. Thus, a sense of responsibility and attachment among employees toward green behavior makes them good citizens. It also works well for their organization as well as for the environment. Moreover, it preserves environmental resources and helps ensure sustainability.Originality/valueThe research paper was aimed at exploring the importance of sustainable Green HRM practices in a developing country like Pakistan.

Youth Work, Youth Studies, and Co-design: Sustaining a Dynamic Nexus to Progress Youth Participation

Youth work practitioners and youth researchers both share a keen interest in the lives, experiences, and well-being of young people; however, the skills and expertise held by practitioners and researchers have not always been mutually valued leading to tensions and a research-practice gap. The rise of co-design methods that prioritise relational skills and ethics appears to mark a moment for closing or reducing this gap. Rather than accepting this convergence at face value, in this paper, we examine some of the key tensions around (1) relational ethics and decision-making, (2) holding multiple roles and expertise, and (3) structures that constrain or sustain participation to argue for sustaining a dynamic research-practice nexus. Drawing on our experience and practitioner-researchers, we argue that rather than simply overlooking the practical and ethical tensions between practice and research, sustaining a dynamic nexus comprising of continuing dialogue and collaboration can foster and progress co-design methods in pursuit of the aims of youth participation.

Untangling the Security-Development Nexus of the US Military Camptowns in South Korea

ABSTRACT This study unravels how discourses and practices on national security and economic development were intertwined at different scales via the US military camptowns in South Korea. While the camptowns have been generally perceived as problematic spaces in socio-economic or ethical terms, memories of camptown residents tell a different and more nuanced story. Yongjugol in Paju, once the largest camptown in Korea, demonstrates how the dynamic nexus between security and development has been constructed and shifted through various spatial scales and how this effectively served to legitimise the exploitation of military prostitutes. However, it also notes that underlining these women’s contributions to national security and economic development leads to unwittingly legitimising the US’s imperial rule in Korea. In this regard, we argue that unravelling the inter-scalar dynamics of the security-development nexus in camptowns helps us de-fantasise the empire’s operation in Korea.