scholarly journals The Effects of Financial Development on Trade Openness: Evidence from Panel Threshold Regression Models

2021 ◽  
Vol 6 (1) ◽  
pp. 53-68
Author(s):  
Zühal KURUL
Keyword(s):  
Financial Development ◽  
Regression Models ◽  
Trade Openness ◽  
Threshold Regression ◽  
Panel Threshold Regression

scholarly journals Revisiting the Role of Fiscal Policy, Financial Development, and Foreign Direct Investment in Reducing Environmental Pollution during Globalization Mode: Evidence from Linear and Nonlinear Panel Data Approaches

Energies ◽  
2021 ◽  
Vol 14 (21) ◽  
pp. 6968
Author(s):  
Mustafa Kamal ◽  
Muhammad Usman ◽  
Atif Jahanger ◽  
Daniel Balsalobre-Lorente
Keyword(s):  
Foreign Direct Investment ◽  
Fiscal Policy ◽  
Panel Data ◽  
Financial Development ◽  
Direct Investment ◽  
Urban Population ◽  
Labour Force ◽  
Trade Openness ◽  
Linear And Nonlinear ◽  
Panel Threshold Regression

Fiscal policy is a crucial government tool for influencing and managing the national economy and creating a strong incentive for low carbon investment. Previous literature has reputable evidence that improving fiscal policy enhances environmental quality. However, the literature fails to classify the exact turning level (threshold point) below/above which the association may be negative or positive. In this regard, this research investigates the nexus between fiscal policy, foreign direct investment, financial development, trade openness, urban population, gross capital formation, labour force, and CO2 emissions in the era of globalization. The panel data set contained 105 countries over the period from 1990 to 2016. The empirical findings are estimated through linear and nonlinear panel data approaches such as fully modified ordinary least square and panel threshold regression. The subsequent findings are established: first, fiscal policy and globalization significantly increase environmental pollution. Second, the empirical results confirm the existence of the pollution haven hypothesis (PHV). Third, financial development and gross fixed capital formation are also considered some of the most crucial indicators to increase pollution levels. Fourth, trade openness, urban population, and labour force improve environmental quality. Fifth, panel threshold regression discovers that countries maintain a minimum level of fiscal policy at −1.2889. Based on these empirical findings, this study suggests that policymakers and governments of these countries should take steps to restructure their industrial sector and design macroeconomic-level carbon-free policies to support the implementation of low-energy-intensive and lower carbon production technologies.

scholarly journals Model-robust inference for continuous threshold regression models

Biometrics ◽  
2016 ◽  
Vol 73 (2) ◽  
pp. 452-462 ◽  
Author(s):  
Youyi Fong ◽  
Chongzhi Di ◽  
Ying Huang ◽  
Peter B. Gilbert
Keyword(s):  
Regression Models ◽  
Robust Inference ◽  
Threshold Regression

Financial Integrational Effects on Macroeconomic Instability in India

2017 ◽  
Vol 11 (2) ◽  
pp. 143-166
Author(s):  
Niranjan R.
Keyword(s):  
Financial Development ◽  
Financial Integration ◽  
Trade Openness ◽  
Jel Classification ◽  
Financial Openness ◽  
Vector Error Correction ◽  
Vector Error ◽  
International Financial Integration ◽  
Macroeconomic Instability ◽  
Negative Effect

The nexus between international financial integration and economic growth continues to be one of the most debated issues among macroeconomists, and these debates often raise several issues from the theoretical and policy perspectives. Financial integration can catalyse financial development, improve governance and impose discipline on macro-policies. However, in the absence of a basic pre-existing level of supporting conditions, financial integration can aggravate instability (Khadraoui, 2010). In addition, economic theory suggests that increased financial openness intensifies macroeconomic instability. This article investigates the financial integrational effects on macroeconomic instability in terms of output, consumption and investment volatility by employing the vector error correction model (VECM) with empirically reasonably parameters for an emerging economy, India, for the period 1989–2014. From the results, it is evident that financial openness has had a significant effect on output, consumption and investment volatility. Financial development has had a statistically significant negative effect on output, consumption and investment volatility. Similarly, trade openness and terms of trade significantly influence output, consumption and investment volatility. JEL Classification: F36, F41, F43, E32

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