G7 Countries Research Articles

The Impact of Oil Prices Fluctuations on Industrial Production in G20 Countries

This paper analyzes the impact of oil prices fluctuations on industrial production in G20 countries, since it includes the largest economies in the world, and it also, consists of major oil exporters and importers countries. Therefore, an industrial production function is estimated with an Autoregressive Distributed Lags model (ARDL) and explained with a set of economic variables such as foreign direct investment, trade openness, the economic freedom index, and gross fixed capital formation, in addition to real oil prices, for the period (1979-2020). This study uses the Pooled Mean Group Dynamic Panel Data estimator (PMG) because it considers the hypothesis of long-term homogeneity between countries, given their interconnection in terms of the size of their economies and the volume of trade exchange. On the other hand, this method assumes heterogeneity in the short term because countries differ within the oil position and adopt policies in response to oil price changes. The main result is that thanks to the energy source diversification policies adopted since the 1970th oil shocks, these countries have successfully minimized the impact of these fluctuations. Thus, in the short term, oil prices do not affect the dependent variable; this impact becomes negative but very limited in the long term.

Public debt and economic growth in G7 countries: do financial and political institutions matter?

ABSTRACT This research aims to examine the role of institutional factors in the public debt-economic growth (PD-EG) nexus using data from 1984 to 2019 for G7 countries, constituting approximately 55% of the global public debt stock. The findings of this study, in which current panel time-series techniques are adopted, show that the PD-EG interaction can be in the form of an inverted U (Italy and UK) or U shape (Germany and U.S.A.) and that institutional factors do not generate effects in the same direction for some countries (Canada, France, and Japan). Moreover, the findings provide robust evidence that the threshold values of the PD-EG relationship may be lower in the presence of institutional factors. In this regard, we argue that just as neither a threshold value nor an effect can be accepted as generally valid in the PD-EG relationship, a similar result is valid for modelling that includes theoretical factors.

Forging a Sustainable Future in G20 Economies: The Transformative Role of Technological Innovation, Green Finance and Higher Education Amid Globalization and Entrepreneurial Growth

Environmental degradation poses a significant global challenge which necessitates innovative strategies to achieve sustainability. This study investigates the impact of technological innovation (TCN), higher education (EDU), green finance (GRF), globalization (GLI), and entrepreneurship (ENT) on environmental quality (EQ) in G20 countries. The study uses panel data from 2000 to 2020 to investigate relationships between study variables. Among the various diagnostic tests conducted, the Variance Inflation Factor (VIF) confirms that multicollinearity is not present. Furthermore, the cross-sectional dependence (CSD) test identifies cross-sectional interdependence among the study variables. Moreover, the slope homogeneity (SL) test indicates heterogeneity in the data. For the stationarity check, the Cross-Sectional Augmented Im–Pesaran–Shin (CIPS) test indicates mixed results. Finally, the study uses the Cross-Sectionally Augmented Autoregressive Distributed Lag (CS-ARDL) and the Generalized Method of Moments (GMM) for the long- and short-run analysis of variables. The outcomes of CS-ARDL indicate that GLI has a significant negative impact on EQ, hence causing deterioration in G20 economies. On the other hand, TCN, EDU, GRF, and ENT show positive and significant impacts on EQ, therefore enhancing environmental outcomes. Additionally, the Dumitrescu–Hurlin causality test reveals bidirectional causality, which highlights the interconnected relationship between TCN and ENT with EQ. However, GRF, EDU, and GLI demonstrate unidirectional causality with EQ. The takeaway of the study focuses on the importance of policies in promoting green innovation, resource efficiency, and sustainable practices to advance environmental quality within G20 economies.

The role of agricultural development and climate change mitigation in the sustainable environment of G20 countries

ABSTRACT The primary objective of the quantitative study is to investigate the impact of agricultural production, agricultural contribution to gross domestic product (GDP), agricultural employment, agricultural land, renewable energy consumption, and growth in carbon dioxide (CO2) emission on the sustainable environment in G20 countries. Therefore, the panel data contains 20 countries from 1991 to 2022. A quantile regression estimation model examined the relationship between explanatory and predictor variables. Therefore, the quantile regression indicated that growth in CO2 emissions and agricultural production have a significant negative impact on the sustainable environment in G20 countries. Furthermore, findings indicate a significant and positive impact of agricultural production on GDP, employment in agriculture, agricultural land, and renewable energy consumption on the sustainable environment in G20 countries. From the understanding of the outcomes of agricultural development and climate change, measures to enhance the accountabilities of the G20 countries to adapt and develop strategies that help improve the sustainability of the environment are profound. The present study demonstrates the opportunities for developing effective strategies to increase food production sustainably and undertake climate change mitigation in G20 countries, underlining the importance of the integrated approach.

Global Anti‐Corruption Commitments and Governance: The Moderating Role of CSR Committees: Evidence From G20 Firms

ABSTRACTThis paper investigates the impact of global anti‐corruption initiatives—particularly the Organisation for Economic Co‐operation and Development (OECD), Global Reporting Initiative (GRI), Anti‐Bribery and Corruption Policy Compliance (ABC), Bribery, Fraud, and Corruption Code Adoption (BRFCODE), and the United Nations Global Compact (UNGC)—on governance performance in G20 countries. Using data from Eikon (2005–2022), the study also investigates the moderating influence of CSR sustainability committees on this relationship. The results indicate that OECD guidelines, ABC, BRFCODE, and the UNGC exert a positive influence on governance performance, while the GRI lacks a significant impact. Remarkably, CSRsuscom are negatively correlated with adherence to OECD guidelines. This research employs a multi‐theoretical framework encompassing stakeholder, agency, and legitimacy theories to provide new insights into governance processes in developed and developing G20 countries. The results show the significance of geographic considerations in corporate governance and provide practical implications for executives and policymakers.

Trends and Projections of Burden of Ischemic Heart Disease in China Versus Other G20 Countries: A Comparative Study Based on the 2021 Global Burden of Disease Database

Objective: This study aims to analyse the burden of ischemic heart disease (IHD) in China and other G20 countries from 1990–2021 and predict the burden for the next decade. Methods: Using data from the Global Burden of Disease (GBD) 2021 study, we evaluated the age-standardised rates (ASRs) of incidence, prevalence, mortality and disability-adjusted life years (DALYs) by estimated annual percentage change (EAPC). The Bayesian age-period-cohort (BAPC) model was used to forecast the incidence, mortality and DALY rates of IHD in China from 2021–2040. Results: The ASRs of incidence, mortality and DALYs of IHD in China increased with EAPCs of 0.66 (95% CI: 0.50, 0.82), 0.97 (95% CI: 0.63, 1.31) and 0.51 (95% CI: 0.24, 0.78), respectively. Compared with other G20 countries, China was ranked 14th for the ASR of incidence in 1990 and then rose to 7th in 2021. The ASR of prevalence for IHD in China jumped from 8th in 1990 to 5th in 2021, and both the ASR of mortality and DALYs for IHD in China ranked 7th in 2021. The top five risk factors affecting mortality in China in 2021 were high systolic blood pressure, dietary risk, air pollution, high LDL cholesterol and tobacco. Over the next 20 years, the ASR of incidence, mortality and DALYs for IHD will increase continuously in males. Conclusion: The burden of IHD is expected to increase steadily in China, highlighting the urgency for early monitoring and preventative strategies, particularly focusing on the elderly and male populations.

The burden of type 2 diabetes in China from 1990 to 2021: A comparative analysis with G20 countries using the global burden of disease study 2021.

The burden of type 2 diabetes in China from 1990 to 2021: A comparative analysis with G20 countries using the global burden of disease study 2021.

The dynamic impact of cryptocurrency implied exchange rates on stock market returns: An empirical study of G7 countries

The dynamic impact of cryptocurrency implied exchange rates on stock market returns: An empirical study of G7 countries

Analyzing the dynamics of the persistence of energy-related uncertainty of G7 countries: What does the time-varying SUR-ADF model say?

Analyzing the dynamics of the persistence of energy-related uncertainty of G7 countries: What does the time-varying SUR-ADF model say?

Macroeconomic Enablers of Sustainable Development in G20 Countries: The Role of Tourism

The G20 countries present a congenial macroeconomic environment in terms of per capita GDP, gross fixed capital formation, labour-force participation, inflation, cross-border trade, financial sector development, and human development for the growth of travel and tourism. These countries have a strong potential for the development of travel and tourism in terms of international tourist arrivals, international tourism expenditure and international tourism receipts. As appropriately recognised by the members of G20 in 2012 for the first time, and as identified during the India’s Presidency in 2023, the potential of travel and tourism can optimally be utilized to make progress towards the SDGs by 2030. In this direction, this study is an attempt to empirically examine the impact of tourism development on sustainable development in G20 countries. The novelty of this study lies in estimating short-run and long-run effects of selected covariates on sustainable development in G20 nations in a panel framework. The results of the estimation of PMG based ARDL regression indicate a statistically significant positive contribution of the development of travel and tourism on sustainable development when macroeconomic indicators are the enablers. This finding contradicts the findings of a recent study by Destek & Aydin that tourism can be detrimental to sustainable development. Thus, the present study ushers a new direction for tourism-led sustainable development. The policy implication is that the effective and efficient implementation appropriate tourism development strategies in such a favourable macroeconomic environment can add to the progress of SDGs in G20 countries.

The Impact of Financial Institution Quality and Financial Stability on Trade-Adjusted Carbon Emissions: The Moderating Role of Green Innovation and Environmental Taxes

This study analyzes the impact of financial institution quality (FIQ) and financial stability (FSI) on trade-adjusted carbon emissions (TAE) in G7 countries from 2000 to 2022. It also examines whether green innovation (GI) and environmental taxes (ET) moderate this relationship. In the study, long-term coefficient estimations were conducted using the Seemingly Unrelated Regressions (SUR), Panel-Corrected Standard Errors (PCSE), and Driscoll-Kraay standard error estimator methods. The results show that GI, ET, FIQ and FSI variables have a negative and significant effect on TAE. Green innovation and environmental taxes reduce carbon emissions, while strong financial institutions and stable financial systems enhance environmental performance by supporting sustainable investments. The Dumitrescu-Hurlin (D-H) causality test results indicate a unidirectional causal relationship between these variables to carbon emissions. These results highlight the significance of integrating environmental policies with financial systems and promoting GI for sustainable development.

Will terrestrial biomes survive in the face of greenhouse gas emissions spillover: Insights from G20 countries.

Will terrestrial biomes survive in the face of greenhouse gas emissions spillover: Insights from G20 countries.

Analysis of Climate Change Performances of G7 Group Countries: An Application Using the MEREC-based RAFSI Method

The activities of major economies regarding climate change can influence the global climate, the global economy, and the climate change strategies of other countries. In this context, analyzing the climate change performance of G7 countries is considered important. In this research, the climate change performances of G7 countries for the year 2023 were measured using the MEREC-based RAFSI method, based on the Climate Change Performance Index (CCPI) criteria. According to the findings, the most significant climate change criteria for G7 countries within the scope of the MEREC method were identified as Greenhouse Gases Emissions and Climate Policy. According to the MEREC-based RAFSI method, the climate change performance values of the countries were ranked as follows: Germany, the UK, France, Italy, the USA, Japan, and Canada. Furthermore, it was observed that the countries with performance values above the average climate change performance value were Germany, the UK, France, and Italy. Consequently, for the improvement of global climate change and contributions to the global economy, it is assessed that G7 countries need to show development particularly in Greenhouse Gas Emissions and Climate Policy criteria, and that the USA, Japan, and Canada need to undertake activities to enhance their climate change performance. From a methodological perspective, it was concluded that the MEREC-based RAFSI method is sensitive in measuring the climate change performances of countries according to sensitivity analysis, credible and reliable according to comparative analysis, and robust and stable according to simulation analysis. Therefore, based on the results of sensitivity, comparative, and simulation analyses, it was determined that the climate change performances of countries can be measured with MEREC based RAFSI in the scope of the CCPI.

Pemodelan Angka Harapan Hidup Negara G7 dengan Pendekatan Analisis Regresi Data Longitudinal

Life expectancy is the average number of years of life a newborn baby will live in a given year. In general, life expectancy is a tool to evaluate government performance in improving community welfare. The aim of this research is prediction using longitudinal data regression analysis methods, namely Generalized Least Square with a Restricted Maximum Likelihood approach using a uniform correlation structure, Autoregressive (AR) (1), and Gaussian with factors that influence life expectancy, namely Tax to GDP ratio, Gross Domestic Product per Capita (GDPPC) and Health Expenditure per Capita from 2000-2020 in G7 countries. Based on the analysis results, it was found that tax revenues had a negative effect of 0.155 but the effect was not significant, GDP had a positive effect of 0.715 but had a significant effect, while health expenditure had a negative effect of 0.49 on Life Expectancy. The research results found that conditions in the G7 that were not ideal caused negative effects on taxes and health spending that were not in accordance with theory. The suggestions that can be given include tax reform from the source and its implementation, such as cigarette tax and sugary drink tax. In addition, it also provides suggestions to include universal health for a healthier and more prosperous society. This research is also in accordance with the aim of Sustainable Development Goals (SDGs) number 3, namely "Ensuring healthy lives and improving the welfare of all populations of all ages" and can be used as a policy reference for Indonesia.

The Tax Burden and Labour Participation Effects of Emerging Markets on G7 Countries

This study aims to analyse the economic dynamics resulting from the tax burden effects, fiscal capabilities and labour force participation rates of countries representing emerging markets on a global scale on the G7 economies, which consist of developed countries. Emerging markets have increasingly become a determining factor in the transformation process of the global economy with their internal dynamics and their direct effects on developed economies. In addition, this study examines the impact of countries representing emerging market economies on G7 economies within the framework of the structural characteristics of existing tax systems and labour markets and evaluates the extent to which these interactions transform the effects on labour force dynamics and taxation policies in G7 countries. On the other hand, the tax burden avoidance strategies of multinational companies in G7 countries and the competitive pressures in labour markets are shaped through both direct and indirect mechanisms, and the expansion of the low-wage competitive environment also causes the restructuring of labour markets on a global scale. While factors such as migration dynamics and technological transformation strengthen the role of emerging market economies in the global system, it is observed that policies such as global minimum tax practices and international taxation standards gain more importance for G7 countries. In this context, it is understood from this fact that the scale effect of emerging markets on the tax burden and labour force participation rates in G7 countries puts pressure on wage levels while at the same time bringing a transformation dynamic that brings the labour markets of developed economies closer to each other on a global scale. The study's findings reveal that G7 countries should carefully evaluate their interactions with emerging markets regarding their long-term economic stability and that it is inevitable for them to develop inclusive policies in this direction

Economies in transition: carbon emissions and renewable energy in G7 and BRICS

Purpose This study investigates the relationship between trade, renewable energy consumption (REC), financial development (FD) and carbon emissions (CE) in G7 and BRICS countries. The aim of this paper is to understand how these factors interact and influence CE, providing insights for sustainable development strategies. Design/methodology/approach The research uses a comprehensive data analysis covering G7 and BRICS nations, using econometric models to evaluate the impact of various factors on CE. Key variables analyzed include investments in environment-related technologies (ERTs), REC, exports, the Financial Development Index (FDI) and imports of goods and services (IMPPC). Findings The study finds that investments in ERTs and REC have a significant negative correlation with CE. Conversely, exports exhibit a positive association with CE. The FDI shows a negative effect on CE, whereas IMPPC display a positive effect. These findings highlight the complexity of achieving sustainable development and the need for a balanced approach that prioritizes renewable energy, ERT investment and green financial growth. Research limitations/implications The research is constrained by the availability of consistent data across all BRICS nations, which may affect the breadth of the findings. Future studies should explore more granular data and consider additional variables to provide a more detailed understanding of the dynamics at play. Practical implications The findings offer valuable insights for policymakers in G7 and BRICS countries to design effective carbon reduction strategies. A balanced approach is necessary, emphasizing renewable energy, ERT investments and fostering FD geared towards sustainability. Originality/value This study contributes to the existing literature by providing a comparative analysis of G7 and BRICS nations, highlighting the differential impacts of trade, renewable energy and FD on CE. It sets a foundation for future research and policy formulation aimed at effective carbon reduction and sustainable development.

Sector-, Season-, and Country-Specific NO2-Associated Health Benefits from NO x Emission Reductions.

Long-term exposure to NO2 is associated with elevated risks for pediatric asthma and premature death. Despite national policies targeting NO2's main source, NO x emissions, its global health burden remains high. Here, we use the air quality model GEOS-Chem adjoint with TROPOspheric Monitoring Instrument (TROPOMI)-based satellite downscaling to estimate that long-term NO2 exposure is responsible for 2.07 (95% CI 0.91-2.70) million pediatric asthma cases and 1.98 (95% CI 0.52-2.86) million deaths globally in 2019. We attribute these to anthropogenic NO x emissions by sector, country, and season using the adjoint model and provide a recommendation for the most impactful sector and season for NO x emission controls in each G20 country. Discrepancies exist between the health benefits incurred by emission reductions and the emission sector distributions, particularly in countries with emitters adjoining population centers. For example, we find that, if Russian anthropogenic NO x emissions were reduced uniformly by 10% across all sectors, the energy sector, 31% of annual NO x emissions, would account for 47% of pediatric asthma and 49% of premature death health benefits. The season in which these emission reductions occur also affects the magnitude of the health benefit, as seen by the fact that Russian wintertime NO x emission reductions alone are responsible for approximately one-third of the annual health benefits for each health outcome. We present the unique results for each of the G20 members to showcase how a country's NO x emission reductions can be most impactful in reducing the global NO2-associated health burden.

Global carbon emission governance and green trade: the moderating role of political stability and trade diversity

In contrast to traditional trade, green trade fully considers the social costs of production, investment, and export following economic activities, building upon environmental governance and protection. While the promotion of green trade is a historical inevitability, countries must actively foster collaboration in new trade initiatives to meet carbon reduction targets. However, during the process of encouraging the expansion of green trade, there is a risk that countries may further increase their carbon emissions, thereby exacerbating environmental degradation. This study utilizes panel data from G20 countries between 2000 and 2022 to examine the relationship between carbon emissions and green trade through an Ordinary Least Squares regression model, with the primary objective of determining whether green trade increases or decreases carbon emissions. To further explore the moderating role of trade diversity and political stability on the relationship between carbon emissions and green trade, a moderating effect regression model is also employed. Additionally, this paper introduces a quantile regression model to assess the varying impact of green trade on carbon emissions across different quantiles. The study’s findings indicate that green trade tends to result in higher carbon emissions. Under conditions of political stability, the potential for green trade to reduce carbon emissions diminishes. Conversely, the positive impact of trade diversification inhibits the positive effects of green trade on carbon emissions. The coefficient of green trade is positive and steadily increases across various quantiles of carbon emissions. At the 0.9 quantile, the association is significantly positive, offering further evidence that green trade could lead to increased carbon emissions. Based on these findings, the paper suggests that a significant reduction in carbon emissions may not be achievable in the near future, and that the path to expanding green trade is both challenging and protracted. Therefore, governments worldwide must carefully implement green trade practices, protect the environment, achieve sustainable economic growth, and promote the rational allocation of resources as prerequisites for the long-term development of the green sector.

Green Finance as a Catalyst for Sustainable Development: Evidence from G7 Countries

The escalating environmental degradation, defined as the deterioration of the natural environment through depletion of resources, pollution, and ecosystem destruction, poses a significant threat to sustainable development, prompting the critical need to explore effective financial mechanisms to address this issue. This investigation enhances the existing literature by analyzing the interplay between green finance, environmental degradation, and specific interaction mechanisms such as economic policy uncertainty, investor protection, and the Paris Agreement providing robust insights into sustainable development strategies for G7 countries. Using data from G7 countries spanning 1998 to 2023, we employ panel fixed effect estimates to analyze the relationship between these variables. Our findings support the supposition that green finance favorably influences environmental degradation, whereas sustainable growth is adversely influencing it. Moreover, our research indicates that the Paris Agreement in 2015, investor protection indices, and low economic policy uncertainty enhance the positive impact of green finance on sustainable development. Our study highlights the importance of integrating green finance into policy frameworks to promote sustainable development and mitigate environmental degradation adverse influence.

Global Value Chains and Trade Policy

Abstract How do global value chain (GVC) linkages modify countries’ incentives to impose import protection? Are these linkages important determinants of trade policy in practice? We develop a new approach to modelling tariff setting with GVCs, in which optimal policy depends on the nationality of value-added content embedded in home and foreign final goods. Theory predicts that discretionary tariffs will be decreasing in the domestic content of foreign-produced final goods and the foreign content of domestically produced final goods. Using data for 14 countries between 1995 and 2015, we show that governments set lower tariffs and curb their use of temporary trade barriers where GVC linkages are strongest, consistent with theory. Turning to quantitative model counterfactuals, we find that severing GVC linkages would lead to the disappearance of tariff preferences. Further, targeted policies to decouple China from GVCs would increase the optimal tariff set by G7 countries on Chinese exports.