scholarly journals Financial Innovation and Financial Inclusion Nexus in South Asian Countries: Evidence from Symmetric and Asymmetric Panel Investigation

2019 ◽  
Vol 7 (4) ◽  
pp. 61 ◽  
Author(s):  
Qamruzzaman ◽  
Wei
Keyword(s):  
South Asian ◽  
Financial Innovation ◽  
Positive Association ◽  
Wald Test ◽  
Financial Inclusion ◽  
Asian Countries ◽  
Causality Test ◽  
Panel Ardl ◽  
Long Run ◽  
Short Run

This paper examines the nexus between financial inclusion and financial innovation while incorporating financial development and remittance inflows in the case of six South Asian countries—Bangladesh, India, Pakistan, Nepal, Bhutan, and Srilanka—by employing the panel autoregressive distributed lagged model under a linear and nonlinear framework using monthly data over the period 1990M1–2018M12. Further, a Granger-causality test with System GMM specification was performed for assessing directional causality. The study findings from Panel ARDL confirmed the positive association between financial innovation and financial inclusion, which was observed both in the long run and short-run. Considering the nonlinearity in the estimation, the standard Wald test confirms the existence of an asymmetric relationship both in the short-run and in long run horizon regarding causality test results. The study findings support the feedback hypothesis that the presence of bidirectional causality between the financial innovation and financial inclusion is both in the short-run and long run. Since the study findings established a critical relationship between financial innovation and financial inclusion, therefore effective policy guidelines are suggested so that the contribution from financial inclusion and financial innovation can assist in developing a vibrant financial sector.

scholarly journals Economic Policy Uncertainty and Financial Innovation: Is There Any Affiliation?

2020 ◽  
Author(s):  
Zeng Jia ◽  
Besnik Hajdari ◽  
Rimsha Khalid ◽  
Jianguo Wei ◽  
Md Qamruzzaman
Keyword(s):  
Economic Policy ◽  
Financial Innovation ◽  
Wald Test ◽  
Policy Uncertainty ◽  
Test Results ◽  
Causality Test ◽  
Economic Policy Uncertainty ◽  
Long Run ◽  
Short Run ◽  
Asymmetry Effects

The study's motivation is to gauge the nexus between economic policy uncertainty and financial innovation for the period 2004M1 to 2018M12 in BRIC nations. For establishing a long-run cointegration study applied Autoregressive Distributed Lagged (ARDL) and asymmetry effects of economic policy uncertainty investigated following nonlinear framework known as NARDL. Furthermore, directional causality is established by performing a non-granger causality test. Cointegration test results of Fpss, Wpss, and tBDM confirmed the long-run association between EPU and financial innovation. On the other hand, the Wald test results proved asymmetry effects furring from EPU to financial innovation both in the long-run and short-run. Referring to asymmetry effects that positive and negative shocks in financial innovation, the study revealed that negative linkage between shocks in EPU and financial innovation in the long-run but short-run effects are insignificant. Furthermore, financial innovation measured by R&D investment exhibits positive linked with shocks in EPU, implying that uncertainty induces innovation in the economy. Refers to directional causality estimation, the study revealed evidence supporting the feedback hypothesis between EPU and financial innovation in all sample countries.

scholarly journals ICT Investment Impact on Human Capital Development through the Channel of Financial Development in Bangladesh: An Investigation of Quantile ARDL and Toda-Yamamoto Test

2020 ◽  
Vol 9 (5) ◽  
pp. 112
Author(s):  
Md. Qamruzzaman ◽  
Salma Karim
Keyword(s):  
Human Capital ◽  
Financial Development ◽  
Positive Association ◽  
Wald Test ◽  
Human Capital Development ◽  
Causality Test ◽  
Long Run ◽  
Short Run ◽  
Capital Development ◽  
Toda And Yamamoto

The study aims to assess the causal effects of ICT investment, financial development, and human capital development in Bangladesh for the period 1990-2019. To do so, we applied liner ARDL, Quantile ARDL, and directional causality investigated by performing a non-granger causality test. The result of Quantile ARDL confirms long-run effects running from ICT investment and financial development to human capital development. Considering the result short-run estimation, study findings established a positive association between financial development and human capital development but both positive and negative observed in ICT investment on human capital development.  Furthermore, the nonlinear relationship established with the standard Wald test. Second, the results of directional causality test following Toda and Yamamoto (1995) proposed framework. Study findings established bidirectional causality running between financial development and human capital development and unidirectional causality running from ICT investment to human capital development. Therefore, it assumed that human capital development in Bangladesh critically relies on financial sector growth and development in the ICT sector. Furthermore, it is also observed that the bidirectional causal relationship also confirmed that is the development of either independent variables can influence each other.

scholarly journals IMPACT OF PUBLIC DEBT ON ECONOMIC GROWTH: AN EMPIRICAL INVESTIGATION FROM SOUTH ASIAN COUNTRIES

2021 ◽  
Vol 9 (2) ◽  
pp. 173-184
Author(s):  
Muhammad Reehan Hameed ◽  
Ghulam Sarwar ◽  
Shahid Adil ◽  
Hafsah Batool ◽  
Israr Hussain
Keyword(s):  
Economic Growth ◽  
South Asian ◽  
Public Debt ◽  
Empirical Investigation ◽  
Fixed Effect Model ◽  
Asian Countries ◽  
Panel Ardl ◽  
Long Run ◽  
Effect Model ◽  
Short Run

Purpose of the study: This study aims to analyze the short-run and as well as long-run effects of public debt on the economy of South Asian countries. And to resolve problems in managing and servicing their massive public debt obligations. Methodology: For econometrically investigation, panel data has been used for the era of 1990-2019. For obtaining econometric outcomes, we applied the Fixed Effect Model and PMG/ Panel ARDL. Main Findings: The results revealed that public debt negatively affected the economic performance of these countries. This effect is adverse both in short as well as in long period. Applications of this study: The study can be effective for simultaneous achievement of the desirable level of economic growth and public debt stock seems to be difficult and could remain elusive if some serious measures have not been taken. Novelty/Originality of this study: The study recommends the efficient and productive utilization of borrowed funds to avoid their negative repercussions.

scholarly journals Do Tourism and Institutional Quality Asymmetrically Effects on FDI Sustainability in BIMSTEC Countries: An Application of ARDL, CS-ARDL, NARDL, and Asymmetric Causality Test

2021 ◽  
Vol 13 (17) ◽  
pp. 9989
Author(s):  
Yang Yixing ◽  
Md. Qamruzzaman ◽  
Mohd Ziaur Rehman ◽  
Salma Karim
Keyword(s):  
Institutional Quality ◽  
Wald Test ◽  
Causality Test ◽  
Asymmetric Effects ◽  
Panel Ardl ◽  
Nonlinear Ardl ◽  
Long Run ◽  
Short Run ◽  
Asymmetric Causality ◽  
The Relationship

The motivation of the study is to investigate the nature of the relationship between institutional quality, tourism, and FDI in BIMSTEC nations for the period 1996Q1–2018Q4. Exploring their nature of association, the study performed several panel econometric models, namely Panel ARDL, Nonlinear ARDL, and Toda-Yamamoto causality test, with symmetric and asymmetric effects of institutional quality and tourism. The results of the Wald test confirmed the long-run asymmetric relationship between institutional quality, tourism, and FDI, both in the long-run and short-run. Furthermore, directional casualty established a feedback hypothesis explaining the relationship between institutional quality, tourism, and FDI.

Linkages Between Employment and Net FDI Inflow: Insights from Individual as Well as Panel Data for Emerging South Asian Labour Market

2020 ◽  
pp. 097215091987350
Author(s):  
Ramesh Chandra Das ◽  
Kamal Ray
Keyword(s):  
Panel Data ◽  
Error Correction ◽  
Labour Market ◽  
South Asian ◽  
Wald Test ◽  
Individual Country ◽  
Employment Level ◽  
Long Run ◽  
Short Run ◽  
Per Capita

In emerging labour market, particularly, the direct and indirect association between employment level and foreign direct investment (FDI) in a dynamic economy is non-deniable. Like private and public investments, FDI promotes employment generating agenda and at the same time, sound employment scenario of an economy attracts FDI to inflow. Under this backdrop, the present study attempts to examine whether employment and net FDI inflow have long-run associations and short-run dynamics in South Asian economies for the period 1991–2016. Applying cointegration and Granger causality tests for individual country level and panel cointegration, vector error correction and Wald test on the two standardized variables—employment–population ratio and per capita net FDI inflow—reveal that the two indicators have cointegrating relations for Bangladesh and Nepal and FDI makes a cause to employment generation in Bangladesh only. Further, the panel data exercise shows the existence of long-run or equilibrium relations linking the two indicators without significant error correction results. The Wald test results show that there is short-run causality working from employment ratio to per capita FDI and vice versa. The study, thus, prescribes for ensuring quality environment in the concerned domestic economies of the region so that employment opportunities invite FDI inflow to their territories.

Factors affecting level of unemployment in South Asia

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Aiza Shabbir ◽  
Shazia kousar ◽  
Muhammad Zubair Alam
Keyword(s):  
South Asian ◽  
Unemployment Rate ◽  
Significant Relationship ◽  
Good Governance ◽  
Asian Countries ◽  
Economic Variables ◽  
Content Type ◽  
Long Run ◽  
Short Run ◽  
The Government

PurposeThis study aims to investigate the short-run and long-run relationship between economic variables and the unemployment rate in South Asian countries.Design/methodology/approachA panel Vector Error Correction (VECM) model is used to establish the long-run and the short-run relationship between unemployment rate and selected economic variables. Data were collected from WDI, WGI and FDSD for the year's 1994–2016.FindingsThe finding of the study showed a negative and significant relationship at the 5% level of significance among governance, internet users, mobile cellular subscriptions, fixed broadband subscriptions and human capital with an unemployment rate of South Asian economies. On the other hand, financial activity (credit) and population growth have a positive and significant relationship with the unemployment rate.Research limitations/implicationsIn the light of our findings clear that employment problems can only be created if the government does not put in place adequate measures to control the population and allocate resources equitably, giving a sense of belonging to all citizens. Therefore, to provide the controlled population with the necessary employment opportunities, it is necessary to allocate resources efficiently and to launch projects aimed at creating jobs.Practical implicationsTransparency or merit is the basis of good governance and the very first step to achieving the goal of good governance is to fight against corruption. It provides a complete justification for providing good quality management records, financial controlling and managerial systems.Originality/valueThe connections between governance and unemployment are complex and need to be studied in a detailed manner. There is the absence of literature that strongly interfaces good governance to unemployment; the fundamental work in this regard is Farid (2015). They locate a solid relationship between good governance and improving external debt situation by in Pakistan a time series analysis. But there is no research in the context of South Asian countries between governance and unemployment.

The short-run and long-run dynamics among FDI, trade openness and economic growth: using a bootstrap ARDL test for co-integration in selected South Asian countries

2020 ◽  
Vol 9 (2) ◽  
pp. 279-295 ◽  
Author(s):  
Hummera Saleem ◽  
Malik Shahzad Shabbir ◽  
Muhammad Bilal khan
Keyword(s):  
Economic Growth ◽  
Sri Lanka ◽  
Causal Relationship ◽  
South Asian ◽  
Trade Openness ◽  
Asian Countries ◽  
Content Type ◽  
Long Run ◽  
Short Run ◽  
Auto Regressive

PurposeThe purpose of this study is to analyze the dynamic causal relationship between foreign direct investment (FDI), gross domestic product (GDP) and trade openness (TO) on a set of five selected South Asian countries.Design/methodology/approachThis study used newly developed bootstrap auto regressive distributed lags (ARDL) cointegration test to examine the long-run relationship among FDI, GDP and TO for selected South Asian countries for 1975–2016.FindingsThe economic growth (EG) is significantly related to TO for Bangladesh, India and Sri Lanka and the expansion of TO is crucial for growth in these countries. The results show that all countries (except Bangladesh) found the existence of long-run cointegration between FDI, GDP and TO, whereas FDI is a dependent variable. These results concluded that FDI and TO are contributing to EG in these selected countries.Originality/valueThis study is one of the first attempts to investigate the causal relationship and address the short and long dynamic among FDI, GDP and TO regarding five south Asian countries such as Bangladesh, India, Nepal, Pakistan and Sri Lanka.

scholarly journals R&D Expenditure R&D Expenditure as an Accelerator of Economic Growth with Special Reference to Developing Countries

2021 ◽  
Vol 7 (3) ◽  
Author(s):  
Tariq Mahmood Ali ◽  
Adiqa Kausar Kiani ◽  
Tariq Bashir ◽  
Talah Numan Khan
Keyword(s):  
Economic Growth ◽  
Developing Countries ◽  
Developing Economies ◽  
Positive Association ◽  
Estimation Model ◽  
Panel Ardl ◽  
Long Run ◽  
Short Run ◽  
The Impact ◽  
D Investment

Purpose: In this network age, among the other factors which increase economic growth, the R&D activities, a pivotal and effective factor, carried out by a country. The present study attempts to investigate the empirical R&D expenditure-economic growth nexus in developing and developed economies, and also provides useful insight about how R&D investment works to enhance the economic growth of a country. Design/Methodology/Approach: In this regard, 21 years data of top 100 economies of the world from 1995 to 2015 has been utilized. The Panel ARD Model approach has been preferred to explore the impact of R&D investment on economic growth (GDP). For construction of the estimation model, five different variables are used. In order to accomplish the results, along with analysing the data of 100 countries a whole, analysis has also been made by dividing countries into different categories and groups. Overall, the Panel ARDL test has been performed on nine different groups of countries. Findings: The results reveal that, ceteris paribus, there is a strong positive association between R&D expenditure and economic growth (GDP) in the long-run; 1% increase in GERD leads to 0.07% increase in GDP. However, the impact in the developing countries (0.043%) is lower compared to the developed OECD countries (0.27%). No impact of the R&D expenditure on economic growth is observed in the short-run. Implications/Originality/Value: The study presents some thought-provoking ideas, policy recommendations and implications for the policy makers, planners and researchers, especially in the context of developing economies.  

scholarly journals Economic Policy Uncertainty and Financial Innovation: Is There Any Affiliation?

2021 ◽  
Vol 12 ◽  
Author(s):  
Zeng Jia ◽  
Ahmed Muneeb Mehta ◽  
Md. Qamruzzaman ◽  
Majid Ali
Keyword(s):  
Economic Policy ◽  
Financial Innovation ◽  
Wald Test ◽  
Policy Uncertainty ◽  
Test Statistics ◽  
Economic Policy Uncertainty ◽  
Distributed Lag ◽  
Long Run ◽  
Non Linear ◽  
Short Run

The impetus of this study is to gauge the nexus between economic policy uncertainty (EPU) and financial innovation in Brazil, Russia, India, China, and South Africa (BRIC) nations for the period from 2004M1 to 2018M12. This study utilizes both the linear and non-linear autoregressive distributed lag (ARDL) models to evaluate the long-run and the short-run association between EPU and financial innovation; furthermore, the causal effects are investigated by following the non-Granger casualty framework. The results of long-run cointegration, i.e., the test statistics of modified F-test (FPSS), standard Wald test (WPSS), and tBDM, reject the null hypothesis and establish the presence of the long-run association between EPU and financial innovation. Conversely, long-run asymmetry cointegration revealed the test statistics of FPSS, WPSS, and tBDM in non-linear estimation. Furthermore, both in the long run and short run, the Wald test results disclose asymmetric effects running from EPU to financial innovation. In regards to the asymmetric impact of EPU on financial innovation, this study documents that the positive and negative shocks in EPU are negatively linked with financial innovation in the long run but are insignificant for short-run effects. Besides, financial innovation measured by R&D investment exhibits a positive linkage with shocks in EPU, implying that uncertainty induces innovation in the economy. Referring to causality effects, this study divulges the feedback hypothesis, i.e., bidirectional causality prevails between EPU and financial innovation in all sample countries.

scholarly journals Financial Inclusion for Sustainable Economy: Empirical Evidence from Nigeria

2020 ◽  
Vol 17 ◽  
Keyword(s):  
Economic Growth ◽  
Secondary Data ◽  
Wald Test ◽  
Financial Inclusion ◽  
Distributed Lag ◽  
Autoregressive Distributed Lag ◽  
Long Run ◽  
Augmented Dickey Fuller ◽  
Short Run ◽  
Adf Test

The main objective of the study is to empirically examine how economic growth is impacted upon through financial inclusion. Economic growth per capital income is the study’s explained variables while, rural deposits, private sector deposits, rural loans, private loans, and number of banks branches are proxies for the explanatory variable. Secondary data was sourced from the Central Bank of Nigeria statistical bulletin and World Bank financial indicator and span thirty-five years (1982 to 2017). From the augmented dickey fuller (ADF) test results, autoregressive distributed lag (ARDL) regression was adopted. Findings shows that individually, rural deposits, and number of banks branches are significant in the short-run while, only the former is significant in the long-run. However, jointly, and from the Wald test result, a no significant relationship is established between the variables in the long-run. The study thus recommends a nurturing approach from primary to tertiary level of financial inclusion.

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