scholarly journals The Relationship between Coal Consumption and Economic Growth in Indonesia

2018 ◽  
Vol 2 (1) ◽  
pp. 12-20
Author(s):  
Keyword(s):  
Economic Growth ◽  
Control Variable ◽  
Coal Consumption ◽  
Causality Test ◽  
Correction Model ◽  
Vector Error Correction ◽  
Vector Error ◽  
Long Run ◽  
Export Tax ◽  
The Relationship

Abstract Indonesia is one of the largest coal producer countries in the world. In the previous research, it is stated that coal producer countries are able to affect economic growth. The purpose of the study is to investigate the cointegration and causal relationships between coal consumption and income in Indonesia for the period of 1965- 2016 using Granger causality test based on Vector Error Correction Model (VECM) employing population as the control variable in bivariate system. The Augmented Dicky-Fuller (ADF) and Phillips-Perron (PP) tests were used to determine the variable stationarity. From Johansen’s co-integration tests, it is indicated that there is a long-run relationship between the variables. The empirical study shows that there is no causal relationship between coal consumption and economic growth in Indonesia since coal consumption in fact cannot affect economic growth in Indonesia. Export tax becomes government revenues earned from energy sectors including coal.

scholarly journals The Relationship between Coal Consumption and Economic Growth in Indonesia

2018 ◽  
Vol 2 (1) ◽  
pp. 12
Author(s):  
Irwandi Irwandi
Keyword(s):  
Economic Growth ◽  
Control Variable ◽  
Coal Consumption ◽  
Causality Test ◽  
Correction Model ◽  
Vector Error Correction ◽  
Vector Error ◽  
Long Run ◽  
Export Tax ◽  
The Relationship

Indonesia is one of the largest coal producer countries in the world. In the previous research, it is stated that coal producer countries are able to affect economic growth. The purpose of the study is to investigate the co-integration and causal relationships between coal consumption and income in Indonesia for the period of 1965-2016 using Granger causality test based on Vector Error Correction Model (VECM) employing population as the control variable in bivariate system. The Augmented Dicky-Fuller (ADF) and Phillips-Perron (PP) tests were used to determine the variable stationarity. From Johansen’s co-integration tests, it is indicated that there is a long-run relationship between the variables. The empirical study shows that there is no causal relationship between coal consumption and economic growth in Indonesia since coal consumption in fact cannot affect economic growth in Indonesia. Export tax becomes government revenues earned from energy sectors including coal.

scholarly journals The Relationship between Coal Consumption and Economic Growth in Indonesia

2018 ◽  
Vol 2 (1) ◽  
pp. 13
Author(s):  
Irwandi Irwandi
Keyword(s):  
Economic Growth ◽  
Control Variable ◽  
Coal Consumption ◽  
Causality Test ◽  
Correction Model ◽  
Vector Error Correction ◽  
Vector Error ◽  
Long Run ◽  
Export Tax ◽  
The Relationship

Indonesia is one of the largest coal producer countries in the world. In the previous research, it is stated that coal producer countries are able to affect economic growth. The purpose of the study is to investigate the co-integration and causal relationships between coal consumption and income in Indonesia for the period of 1965-2016 using Granger causality test based on Vector Error Correction Model (VECM) employing population as the control variable in bivariate system. The Augmented Dicky-Fuller (ADF) and Phillips-Perron (PP) tests were used to determine the variable stationarity. From Johansen’s co-integration tests, it is indicated that there is a long-run relationship between the variables. The empirical study shows that there is no causal relationship between coal consumption and economic growth in Indonesia since coal consumption in fact cannot affect economic growth in Indonesia. Export tax becomes government revenues earned from energy sectors including coal.

scholarly journals The Trade-Off Between Tourism and Pollution for Japanese Economic Growth

Tourism ◽  
2021 ◽  
Vol 69 (3) ◽  
pp. 381-394
Author(s):  
Giovanni Bella ◽  
Carla Massidda
Keyword(s):  
Economic Growth ◽  
Environmental Kuznets Curve ◽  
Kuznets Curve ◽  
Correction Model ◽  
Trade Off ◽  
Vector Error Correction ◽  
Vector Error ◽  
Long Run ◽  
Polluting Emissions ◽  
The Relationship

This paper proposes a vector error correction model to investigate the relationship between polluting emissions and GDP levels in Japan, in the period 1970-2014, and tests the validity of the Environmental Kuznets Curve (EKC) hypothesis driven by tourist arrivals. Our results validate the existence of two different causality channels among the selected variables. In particular, we find that a trade-off might exist between increasing the number of tourists, which drives economic growth, and the pattern of a sustainable development, due to the increase of polluting emissions. The analysis allows us to propose appropriate policy strategies to promote a robust and sustainable long run economic growth.

scholarly journals Does Uncertainty Matter for Trade - Economic Growth Nexus in Indonesia?

2021 ◽  
Vol 67 (1) ◽  
pp. 147
Author(s):  
Panky Tri Febiyansah ◽  
Bintang Dwitya Cahyono ◽  
Rio Novandra
Keyword(s):  
Economic Growth ◽  
Causal Relationship ◽  
Output Growth ◽  
Correction Model ◽  
Vector Error Correction ◽  
Vector Error ◽  
Long Run ◽  
The Impact ◽  
The Relationship

This paper aims to test the impact of uncertainty on the causal relationship among exports, imports, and economic growth in Indonesia. The relationship is constructed by examining the presence of FDI-adjusted exports and imports (trade) and the output link using conditional variances-covariances derived from the generalized autoregressive conditional heteroskedastic (GARCH) process in a vector error correction model (VEC-GARCH model). Using evidence in Indonesia, the model exposes the uni-directional nexus from trade performance to trade-adjusted output growth in the absence of uncertainty. The volatility effects are evident in the causal relationship between trade and output. The finding shows that the uncertainty effects hamper the trade-economic growth nexus. Incorporated with the long-run causality, trade still causes output even after containing the contributions of volatility. The significant role of imports highlights the higher demand for intermediate capital products and the inclusion of technology in strengthening economic growth.

THE CAUSAL RELATIONSHIP BETWEEN INSURANCE AND ECONOMIC GROWTH IN NIGERIA (1986-2010)

2012 ◽  
Vol 02 (12) ◽  
pp. 49-57
Author(s):  
TAIWO AKINLO
Keyword(s):  
Economic Growth ◽  
Interest Rate ◽  
Causal Relationship ◽  
Causality Test ◽  
Correction Model ◽  
Vector Error Correction ◽  
Vector Error ◽  
Long Run ◽  
Short Run

This study examined the causal relationship between insurance and economic growth in Nigeria over the period 1986-2010. The Vector Error Correction model (VECM) was adopted. The cointegration test shows that GDP, premium, inflation and interest rate are cointegrated when GDP is the edogeneous variable. The granger causality test reveals that there is no causality between economic growth and premium in short run while premum, inflation and interest rate Granger cause GDP in the long run which means there is unidirectional causality running from premium, inflation and interest rate to GDP. This means insurance contributes to economic growth in Nigeria as they provide the necessary long-term fund for investment and absolving risks.

scholarly journals Inflation, Unemployment and NAIRU Estimate in Indonesia: Phillips Curve Approach

2018 ◽  
Vol 51 (3-4) ◽  
pp. 24-32
Author(s):  
Nurul Hafnati ◽  
Sofyan Syahnur
Keyword(s):  
Phillips Curve ◽  
Wald Test ◽  
Analysis Model ◽  
Causality Test ◽  
Correction Model ◽  
Vector Error Correction ◽  
Vector Error ◽  
Long Run ◽  
Short Run ◽  
The Relationship

The present study was carried out to analyze the relationship between inflation and unemployment in NAIRU estimate in Indonesia through Phillips curve approach during 25 years data from 1991-2016. The analysis model used in this research was Vector Error Correction Model (VECM) as attempts to determine the long run and short run relationships between inflation and unemployment matters in Indonesia. The results of Granger causality test indicated two-way relationship between inflation and unemployment in Indonesia. The formulated results on long run estimate pointed out that unemployment delivered negative and significant effects on inflation. Nonetheless, Wald Test designated that there was a short run relationship between inflation and unemployment

scholarly journals Export Diversification and Economic Growth in the United Arab Emirates: An Empirical Investigation

2020 ◽  
Author(s):  
SAIMA SHADAB
Keyword(s):  
Economic Growth ◽  
United Arab Emirates ◽  
Export Diversification ◽  
Test Results ◽  
Causality Test ◽  
Correction Model ◽  
Vector Error Correction ◽  
Vector Error ◽  
Long Run ◽  
Short Run

Abstract Using the Vector Error Correction Model and Toda-Yamamoto Causality approach, this paper investigates the short-run and long-run relationship between export diversification, physical and human capital, imports, and economic growth in the UAE. The study period in consideration is 1975-2017. The findings obtained from the VECM test confirm the existence of a significant long-run relationship between export diversification, imports, and economic growth in the UAE. Besides, the Toda Yamamoto Granger Causality test results reveal that imports Granger-cause UAE’s economic growth which proves the validity of the Import-Led Growth hypothesis for the UAE economy in the long-run. The results also confirm that a unidirectional causal relationship exists from export diversification to economic growth for the UAE. This finding indicates the success of the UAE economy in attaining economic diversification and reduction from oil-dependency.

scholarly journals Agricultural Output and Economic Growth Nexus in Ghana

2021 ◽  
Vol 4 (1) ◽  
Author(s):  
T. Mohammed ◽  
T Damba ◽  
J. Amikuzuno
Keyword(s):  
Economic Growth ◽  
Value Added ◽  
Causality Test ◽  
Agricultural Output ◽  
Vector Error Correction ◽  
Agriculture Sector ◽  
Vector Error ◽  
Long Run ◽  
Integration Test ◽  
The Relationship

This study explored the relationship between agricultural output and economic growth in Ghana from 1960 to 2016 using monthly data on the Gross Domestic Product (GDP), Gross Capital Formation (GCF), agriculture and inflation. Despite several agriculture-led economic growth programmes that have been implemented by successive governments, including the very recent “Planting for Food and Jobs” to create jobs and boost economic growth, the contribution of agriculture sector output to the Ghanaian economy has been on the decline. The estimation results from the Johansen Maximum Likelihood co-integration and the Vector Error Correction Model (VECM) support evidence of a long-run relationship between agricultural output and economic growth in Ghana. Specifically, the co-integration test reveals that agricultural output and economic growth were found to be moving together in the long run. The Granger causality test showed a unidirectional causal relationship running from agricultural value-added to economic growth but no causal flow from general economic growth to agriculture. This indicates that agriculture is still an engine of economic growth in Ghana and hence requires pro-poor policies to address the numerous challenges.

Empirical Research of the Relationship between Energy Consumption and Economic Growth in Beijing

2014 ◽  
Vol 962-965 ◽  
pp. 2220-2224
Author(s):  
Jie Yang
Keyword(s):  
Economic Growth ◽  
Energy Consumption ◽  
Causal Relationship ◽  
Causality Test ◽  
Correction Model ◽  
Vector Error Correction ◽  
Vector Error ◽  
Integration Test ◽  
The Relationship

This paper investigates the dynamic causal relationship between energy consumption and economic growth in Beijing over the period 1980-2012. The Johansen co-integration test, Granger causality test and the vector error correction model (VECM) are used to calculate the causal relationship between energy consumption and economic growth. The conclusion is that there exists a co-integration relationship between energy consumption and economic growth, and this relationship is a one way relationship from economic growth to energy consumption. Further, using VECM, the long-term and short-term elasticity from economy to energy consumption are 0.43 and 0.14 separately. Statistical analysis shows that, from 1980 to 2011, every 1% growth in GDP annually would drive energy consumption increasing rate by 0.43% correspondently.

Enhancing Economic Growth and Government Revenue Generation in Nigeria: The Role of Diaspora Remittances

2021 ◽  
pp. 003464462110256
Author(s):  
Dal Didia ◽  
Suleiman Tahir
Keyword(s):  
Economic Growth ◽  
Parameter Estimates ◽  
Gross Domestic Product Growth ◽  
Correction Model ◽  
Vector Error Correction ◽  
Vector Error ◽  
Long Run ◽  
Short Run ◽  
The Empirical Analysis

Even though remittances constitute the second-largest source of foreign exchange for Nigeria, with a $24 billion inflow in 2018, its impact on economic growth remains unclear. This study, therefore, examined the short-run and long-run impact of remittances on the economic growth of Nigeria using the vector error correction model. Utilizing World Bank data covering 1990–2018, the empirical analysis revealed that remittances hurt economic growth in the short run while having no impact on economic growth in the long run. Our parameter estimates indicate that a 1% increase in remittances would result in a 0.9% decrease in the gross domestic product growth rate in the short run. One policy implication of this study is that Nigeria needs to devise policies and interventions that minimize the emigration of skilled professionals rather than depending on remittances that do not offset the losses to the economy due to brain drain.

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