The globalization, financial development, renewable energy, and economic growth
Citations
257 citations
70 citations
50 citations
References
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....
[...]
...To test the direction of causality between variables, the Granger (1969) approach based on the Vector Error Correction Model (VECM) is employed....
[...]
13,898 citations
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)....
[...]
...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....
[...]
...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....
[...]
...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....
[...]