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Green growth is recognized as an adequate mechanism to decelerate environmental turmoil. However, empirical evidence on what determines sustainable economic growth is still underexplored. Apprehending the importance of financial liberalization, human capital, and militarization in the South Asian region, we investigate their short- and long-run effects on green growth using data from 1990 to 2017. To address the cross-sectional dependency (CD) and heterogeneity issue, second-generation cointegration estimation techniques are employed. The findings show a stable and long-run relationship between financial liberalization, human capital, military expenditures, and green growth. The results of CS-ARDL also show the positive long-run effect of financial liberalization and human capital while the negative effect of militarization on green growth. Nonetheless, the interaction effects show the darker side of human capital and the brighter side of militarization in the presence of more financial openness. Results were further validated using the Augmented Mean Group (AMG) and Dumitrescu-Hurlin Granger causality test, highlighting the need to optimally utilize military expenditures, financial liberalization, and human capital for the sustainable growth of the region. [ABSTRACT FROM AUTHOR]

The purpose of this study is to examine the effect of the Severe Acute Respiratory Syndrome (S.A.R.S.) epidemic on the long-run relationship between China and four Asian stock markets. To this end, we first employ the advanced smooth time-varying cointegration model to investigate the existence of a time-varying cointegration relation among these markets and then employ the difference-in-differences approach to analyse whether or not the S.A.R.S. epidemic impacted the long-run relation between China and these four markets during the period 1998-2008, covering 5 years before and after the S.A.R.S. outbreak. Our results support the existence of a time-varying cointegration relation in the aggregate stock price indices, and that the S.A.R.S. epidemic did weaken the long-run relationship between China and the four markets. Therefore, stockholders and policy makers should be concerned about the influence of catastrophic epidemic diseases on the financial integration of stock market in Asia. [ABSTRACT FROM AUTHOR]

Agricultural activities immensely contribute to greenhouse gas emissions (GHGs). This study investigates the heterogeneous effect of agricultural production (AGRIP) on three major GHGs emissions, i.e., carbon dioxide (CO 2), nitrous oxide (N 2 O), and methane (CH 4) under the Environmental Kuznets Curve (EKC) framework using a balanced panel data of 90 countries from the period 1991 to 2019. Second-generation panel unit root and cointegration tests are conducted to account for cross-sectional dependence. The findings suggest that there is a long run equilibrium among target variables. Evidence from panel quantile regression suggests that AGRIP significantly reduced CO 2 emissions, and the effect is stronger in lower quantiles (least carbon emitters). On the other hand, AGRIP increases N 2 O and CH 4 emissions in all quantiles. However, AGRIP is homogeneously distributed across N 2 O quantiles while the effect is stronger in higher quantiles (high methane emitters) in the case of CH 4 model. Concerning agricultural trade, exports impede CO 2 emissions but increase N 2 O and methane emissions. Agricultural imports are positively associated with all GHGs emissions. The effect of agricultural trade is largely heterogeneous and varies across different quantile levels of GHGs emissions. The EKC is fully valid for CO 2 and N 2 O but not for the methane emissions model. Based on the results, it is suggested that high GHGs emitter should shift their agricultural activities from traditional to sustainable approaches along with green trade policies to achieve climate neutrality targets. • The method of moments quantile regression is utilized. • Agricultural production (AGRIP) decreases CO 2 emissions via carbon sequestration. • N 2 O and CH 4 are the main sources of AGRIP. • EKC is valid for CO 2 and N 2 O models but not for CH 4. • Agricultural trade increase GHGs asymmetrically and heterogeneously. [ABSTRACT FROM AUTHOR]

• Using panel data for 241 cities at the prefecture level and above in China from 2010 to 2019. • Consider urban agglomeration planning as a quasi-natural experiment of regional integration and use a DIDs method. • Regional integration significantly improves economic resilience. • The policy effect of regional integration on economic resilience varies by time, region, and urban structure. • Urban size structure and industrial structure are critical pathways. Under the dual pressure of "slow-burn" challenges and acute shocks, increasing economic resilience is gaining attention around the world to ensure the security and stability of economic activities. With the goal of achieving sustainable development, the China is exploring an innovative, coordinated, green, open, shared and secure development path for the regional economy. Using panel data for 241 cities at the prefecture level and above in China from 2010 to 2019, this research considers urban agglomeration planning as a quasi-natural experiment of regional integration and use a difference-in-differences method to explore the effect of regional integration on economic resilience. The results show the following. 1) Regional integration does improve economic resilience after various robustness tests. 2) The policy effect of regional integration on economic resilience varies by time, region, and urban structure. 3) Urban size structure and industrial structure are important ways in which regional integration affects economic resilience. Our findings enrich the theoretical study of the relationship between regional integration and economic resilience and provide a new path to improve regional economic resilience and achieve sustainable development. [ABSTRACT FROM AUTHOR]

This study revisits the long run and dynamic causal linkages between defense spending and economic growth in 15 selected European countries for the period 1988–2010 by utilizing recent developments in non-stationary panel data analysis. To this end, the series properties of per capita defense spending, per capita real capita stocks, and per capita real GDP are investigated by the panel unit root tests with and without breaks that support evidence on unit root. The panel cointegration tests with and without breaks are also subsequently employed to investigate whether there exists a long-run equilibrium relationship between these three variables. Finally, our causality analysis from panel vector error-correction model suggests that there is a feedback relation between real capital stock and real GDP in both short and long run, a one-way Granger causality running from real GDP to defense spending in both short and long run, and defense spending only Granger causes real capital stock in the long run. [ABSTRACT FROM AUTHOR]

The issue of asymmetry and nonlinearity in the context of economic voting was proposed as far back as the 1970s. The aim of this paper is to revisit the economic voting phenomenon by investigating the asymmetric cointegration between government popularity and economic conditions in Taiwan over the period from 1992 to 2007. We employ an advanced threshold autoregressive model and find strong evidence of threshold cointegration relationships between our observed variables. Furthermore, an asymmetric error correction model indicates that voters use different economic indicators to evaluate government popularity in different regimes and the speed of adjustment to the long-run equilibrium is more rapid in the lower regime and slower in the higher regime. Finally, the evidence shows that the economic voting behavior is supported by the presence of the threshold effects. Based on the nonlinear, asymmetric and threshold effects, we are able to provide several critical implications concerning the governance of the incumbent political party, particularly, in relation to the promotion of economic policy aimed at improving its popularity. [ABSTRACT FROM AUTHOR]

This paper adopts an advanced panel cointegration method which incorporates multiple structural breaks to examine the long-run relationship between real output (RGDP) and the Konjunkturforschungsstelle (KOF) index of globalization (overall and its three main sub-indices), employing annual data of G7 countries from 1970 to 2006. Our empirical findings provide strong evidence that overall globalization and its social dimension are cointegrated with RGDP, and most of the structural break points are discovered during the period of the oil crisis (the mid-1970s) and the process of European Union integration. In addition, in evaluating whether or not the structural breaks affect the RGDP through globalization, we discover that both the overall globalization index and the social globalization index have a directly positive impact on RGDP but indirectly exhibit negative impacts on real output via the channel of social globalization. [ABSTRACT FROM AUTHOR]

This paper investigates the stationarity properties and long-run relationship of Taiwan’s regional house prices from 1993Q1 to 2009Q2. It applies the recent unit-root test of the panel seemingly unrelated regressions augmented Dickey–Fuller (SURADF) test developed by Breuer et al. The empirical results illustrate that Taiwan’s regional house prices are a mixture of stationary and non-stationary processes, showing that the stationarity properties of these prices are dependent on the structure and properties of the various regions. Secondly, the findings of the cointegration test provide substantive evidence for a long-run relationship among all regions except Taipei City, implying a diffusion of regional house prices among each regional market except Taipei City. Finally, the results of the weak exogeneity test indicate that uni-directional causality relationships exist for three regions—Taipei County, Taoyuan-Hsinchu and Tainan-Kaohsiung—towards Taichung. The regional house price efficiently diffuses itself among these regions, caused by a much smaller public housing sector and the pre-sale system in Taiwan. [ABSTRACT FROM PUBLISHER]

Using panel data unit root tests and panel cointegration tests, as well as estimation techniques appropriate for heterogeneous panels such as the full modified OLS, this paper re-examines the long-run co-movement and the causal relationship between GDP and social security expenditure in a bivariate model, employing data on 25 OECD countries from 1980 to 2001. Our cointegration test results show strong evidence in favour of the existence of a long-run equilibrium cointegrating relationship between GDP and social security expenditure after allowing for a heterogeneous country effect. Regarding the panel-based error correction model, we find that GDP and social security expenditure lack short-run causality, but reveal the existence of long-run bidirectional causality. This shows that, in the long run, economic growth must be based on a social welfare policy that should be carried out, and economic growth can facilitate contiguous development in a social welfare policy. Lastly, we also provide evidence to support that social security expenditure can affect growth through the savings and human capital accumulation in OECD countries. [ABSTRACT FROM AUTHOR]

Abstract: This paper examines the lead-lag relationships and the dynamic linkages among four regional house price indices in Taiwan. We employ the Johansen cointegration technique, Toda and Yamamoto’s Granger causality test, the generalized impulse response approach, and variance decomposition analysis to find out the extent and the magnitude of their relationships. The estimated long-run relationship between regional house prices appears to have remained stable throughout the sample period. Our empirical results show a bidirectional relationship between house prices in the most important economic center, Taipei City, and its suburban area, Taipei County. However, there are no causalities of house prices between Taipei City and other megacities in Taiwan. The mutual impacts of the shocks between house prices in Taipei City and Taipei County are significantly positive, while these impacts on Kaohsiung City, far from Taipei City, are insignificant. Finally, the results of the generalized impulse response approach indicate that the house prices indices of Taipei City are the most exogenous while those for Taipei County are the most endogenous. [Copyright &y& Elsevier]