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Journal ArticleDOI

The globalization, financial development, renewable energy, and economic growth

23 Mar 2017-Energy Sources Part B-economics Planning and Policy (Taylor & Francis)-Vol. 12, Iss: 8, pp 707-714
TL;DR: In this paper, the authors investigated the correlation among economic growth, renewable energy, energy consumption, capital fixed formation, globalization, trade openness, and urbanization for 1992 Q1-2014 Q4, using the auto-regressive distributed lag (ARDL) model in Iran.
Abstract: This study investigates the correlation among economic growth, renewable energy, energy consumption, capital fixed formation, globalization, trade openness, and urbanization for 1992 Q1–2014 Q4, using the auto-regressive distributed lag (ARDL) model in Iran. The ARDL approach demonstrates that renewable energy is positively correlated with economic growth. The results show that all the variables in the study are co-integrated and there is a long-run relationship among variables. The findings also show that the overall index of globalization has a positive effect on growth. Granger causality reports bidirectional causality among renewable energy consumption (REC), globalization, financial development, and economic growth.
Citations
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Journal ArticleDOI
TL;DR: The main purpose of this article is to use both growth and environmental functions to demonstrate the effectiveness of renewable energy in promoting economic growth and mitigating carbon emissions in the case of 15 major renewable energy-consuming countries using both fully modified ordinary least square (FMOLS) and vector error correction model (VECM) estimation techniques.

257 citations

Journal ArticleDOI
TL;DR: Wang et al. as discussed by the authors applied a bootstrap panel causality test to explore the cause and effect of renewable energy consumption on urbanization and economic growth in China after a cross-sectional dependence test and a slope homogeneity test.

70 citations

Journal ArticleDOI
01 Jun 2021-Energy
TL;DR: In this article, the authors investigated the impact of public debt on renewable energy consumption for the case of 20 emerging countries, where the public debt and demand for renewable energy are increasing, and the regression with Driscoll-Kraay standard errors indicated that public debt decreases the renewable energy of the countries under this study.

50 citations

References
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Journal ArticleDOI
TL;DR: In this article, the cross spectrum between two variables can be decomposed into two parts, each relating to a single causal arm of a feedback situation, and measures of causal lag and causal strength can then be constructed.
Abstract: There occurs on some occasions a difficulty in deciding the direction of causality between two related variables and also whether or not feedback is occurring. Testable definitions of causality and feedback are proposed and illustrated by use of simple two-variable models. The important problem of apparent instantaneous causality is discussed and it is suggested that the problem often arises due to slowness in recording information or because a sufficiently wide class of possible causal variables has not been used. It can be shown that the cross spectrum between two variables can be decomposed into two parts, each relating to a single causal arm of a feedback situation. Measures of causal lag and causal strength can then be constructed. A generalisation of this result with the partial cross spectrum is suggested.

16,349 citations


"The globalization, financial develo..." refers methods in this paper

  • ...Granger (1969) stated that once the variables are integrated at I (1), then the vector error correction method (VECM) is an appropriate approach to test the direction of causal link between variables....

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  • ...To test the direction of causality between variables, the Granger (1969) approach based on the Vector Error Correction Model (VECM) is employed....

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Journal ArticleDOI
TL;DR: In this paper, the authors developed a new approach to the problem of testing the existence of a level relationship between a dependent variable and a set of regressors, when it is not known with certainty whether the underlying regressors are trend- or first-difference stationary.
Abstract: This paper develops a new approach to the problem of testing the existence of a level relationship between a dependent variable and a set of regressors, when it is not known with certainty whether the underlying regressors are trend- or first-difference stationary. The proposed tests are based on standard F- and t-statistics used to test the significance of the lagged levels of the variables in a univariate equilibrium correction mechanism. The asymptotic distributions of these statistics are non-standard under the null hypothesis that there exists no level relationship, irrespective of whether the regressors are I(0) or I(1). Two sets of asymptotic critical values are provided: one when all regressors are purely I(1) and the other if they are all purely I(0). These two sets of critical values provide a band covering all possible classifications of the regressors into purely I(0), purely I(1) or mutually cointegrated. Accordingly, various bounds testing procedures are proposed. It is shown that the proposed tests are consistent, and their asymptotic distribution under the null and suitably defined local alternatives are derived. The empirical relevance of the bounds procedures is demonstrated by a re-examination of the earnings equation included in the UK Treasury macroeconometric model. Copyright © 2001 John Wiley & Sons, Ltd.

13,898 citations

Book ChapterDOI
01 Jan 2001
TL;DR: In this article, it is shown that the cross spectrum between two variables can be decomposed into two parts, each relating to a single causal arm of a feedback situation, and measures of causal lag and causal strength can then be constructed.
Abstract: There occurs on some occasions a difficulty in deciding the direction of causality between two related variables and also whether or not feedback is occurring. Testable definitions of causality and feedback are proposed and illustrated by use of simple two-variable models. The important problem of apparent instantaneous causality is discussed and it is suggested that the problem often arises due to slowness in recordhag information or because a sufficiently wide class of possible causal variables has not been used. It can be shown that the cross spectrum between two variables can be decomposed into two parts, each relating to a single causal arm of a feedback situation. Measures of causal lag and causal strength can then be constructed. A generalization of this result with the partial cross spectrum is suggested.The object of this paper is to throw light on the relationships between certain classes of econometric models involving feedback and the functions arising in spectral analysis, particularly the cross spectrum and the partial cross spectrum. Causality and feedback are here defined in an explicit and testable fashion. It is shown that in the two-variable case the feedback mechanism can be broken down into two causal relations and that the cross spectrum can be considered as the sum of two cross spectra, each closely connected with one of the causations. The next three sections of the paper briefly introduce those aspects of spectral methods, model building, and causality which are required later. Section IV presents the results for the two-variable case and Section V generalizes these results for three variables.

11,896 citations


"The globalization, financial develo..." refers methods in this paper

  • ...The long-run association between REC and economic growth in the case of Iran is investigated by applying the ARDL bounds testing approach presents by Pesaran et al. (2001). This approach is more appropriate compared to conventional co-integration techniques for a small sample (Haug, 2002)....

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  • ...This study performed the estimation of VECM to draw results about the direction of causality. The existence of a co-integration relationship between the variables, as shown by the co-integration statistics in Table 4, indicated Granger causality in these variables. The results of error correctionbased Granger causality included the short-run and long-run Granger causality. The Granger causality results showed the bidirectional causal relationship between REC and economic growth and has a positive sign and is statistically significant in the short run. Apergis and Payne (2010) showed the existence of short-run bidirectional causality between renewable and nonrenewable energy consumption, indicative of substitutability between the two energy sources....

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  • ...This test is superior and more powerful compared to conventional unit root tests such as augmented Dickey–Fuller test, generalized least squares, Kwiatkowski–Phillips–Schmidt–Shin tests etc. Baum (2004) stated that it is a necessary condition to test the integrating order of the variables before applying the ARDL bounds testing approach to the co-integration relationship between the series....

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  • ...The theoretical basis of this focus area lieswith the fundamental economics of production as it has been used by Fang (2011) to evaluate the influence of REC on the Chinese economy....

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DOI
12 Nov 2015

6,961 citations

Trending Questions (1)
Has globalization been good for the US?

The findings also show that the overall index of globalization has a positive effect on growth.