Topic
Cointegration
About: Cointegration is a research topic. Over the lifetime, 17130 publications have been published within this topic receiving 506215 citations.
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TL;DR: This article applied Granger causality and cointegration techniques to a Swedish time series data set on energy and economic growth spanning 150 years to test whether increases in energy use and energy quality have driven economic growth.
120 citations
TL;DR: In this article, the authors examined the relationship between financial development and income inequality, and also explored if the Greenwood and Jovianvich (GJ) hypothesis applies to Pakistan.
Abstract: The paper examines the relationship between financial development and income inequality; and
also explores if the Greenwood and Jovianvich (GJ) hypothesis applies to Pakistan. Using data
from 1971 to 2005, the paper implements the Auto Regressive Distributed Lag (ARDL) bounds
testing approach to cointegration to examine the existence of long run; and the error correction
model (ECM) for the short run relationships. Stationarity properties of the series are checked by
the ADF method. The findings indicate that financial development reduces income inequality
while financial instability aggravates it. Contrary to the conventional wisdom, we find economic
growth worsens income distribution and that the latter is deteriorated further by trade openness.
The paper does not find support for the GJ relation. Appropriate reforms aimed at developing a
well-organized financial sector in Pakistan can help reduce income inequality.
120 citations
TL;DR: In this article, the authors investigated the existence of a long-run aggregate merchandise import demand function for Bangladesh during the period 1974 - 94 and applied cointegration and error correction modeling approaches.
Abstract: This paper investigates the existence of a long-run aggregate merchandise import demand function for Bangladesh during the period 1974 - 94. The cointegration and error correction modelling approaches have been applied. Empirical results suggest that there exists a unique long-run or equilibrium relationship among real quantitities of imports, real import prices, real GDP and real foreign exchange reserves. The dynamic behaviour of import demand has been investigated by estimating two types of error correction models, in which the error correction terms have been found significant. In model I, real import prices and real GDP (lagged one year) and in model II, real import prices, real GDP (lagged one year), real imports (lagged one quarter) and a dummy variable capturing the effects of import liberalization policies have all emerged as important determinants of import demand function. The error correction models have also been found to be robust as they satisfy almost all relevant diagnostic tests.
120 citations
TL;DR: The causality analysis suggest that tourism Granger causes CO2 emissions both in the short- and long-run, while real income and globalization only Granger causeCO2 emissions in the long- run.
120 citations
TL;DR: In the long-run, capital, labor, and non-renewable energy consumption are found to affect the economic growth positively and the impact of renewable energy consumption on theEconomic growth is found be positive but statistically insignificant.
Abstract: In a neo-classical aggregate production and Stochastic Impacts by Regression on Population, Affluence and Technology (STIRPAT) modeling framework, the paper attempts to explore the relationship between disaggregated energy consumption, economic growth, and carbon dioxide emissions in case of five emerging market economies-Brazil, Russia, China, India, and South Africa (BRICS) over the period 1992 to 2016. The study applied the robust unit root, cointegration, and long-run elasticity estimation methods like Pooled Mean Group and differenced panel generalized method of moments for empirical exercise. Having detected the panel heterogeneity and cross-sectional dependence, the cointegration tests documented the evidence of a long-run association among the variables. In the long-run, capital, labor, and non-renewable energy consumption are found to affect the economic growth positively. On the contrary, the impact of renewable energy consumption on the economic growth is found be positive but statistically insignificant. Moreover, population, per-capita income, and non-renewable energy consumption are found to increase the emissions whereas renewable energy consumption decreases them. Therefore, along with a proper emissions controls, BRICS countries should design and implement effective support policies so as to ensure the economic growth along with environmental sustainability.
120 citations