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Purpose - The paper investigates whether Granger causal relationships exist between bond market development, stock market development, economic growth and two other macroeconomic variables, namely, inflation rate and real interest rate. The study aims to expand the domain of economic growth by including a more in-depth analysis of the possible impact that bond market and stock market development has on economic growth than is normally found in the literature. Design/methodology/approach - This paper uses a panel data set of the G-20 countries for the period 1991-2016. It uses a panel vector auto-regression model to reveal the nature of any Granger causality among the five variables. Findings - The paper provides empirical insights that both bond market development and stock market development are cointegrated with economic growth, inflation rate and real interest rate. The most robust result from the panel Granger causality test is that bond market development, stock market development, inflation rate and real interest rate are demonstrable drivers of economic growth in the long run. Research limitations/implications - Because of the chosen research approach, the research results may lack theoretical foundations. Therefore, perhaps the more fully grounded interactive findings of this study can inspire theorists to fill the missing gap. Practical implications - This paper includes lessons for policymakers in the G-20 countries seeking to stimulate economic growth in the long run and how they need to ensure greater stability of the interest rate and inflation rate as well as fully developing their financial markets, as both bond markets and stock markets are obvious drivers of economic growth. Originality/value - This paper fulfills an identified need to study causal relationships between bond market development, stock market development, economic growth and two other macroeconomic variables, i.e. inflation rate and real interest rate.

Research Highlights • An assessment of institutional quality, innovation, and economic growth in developing countries. • Long-run causality from innovation and institutional quality to economic growth is present. • Short-run directions of causality are varied among variables of interest. • Innovation and institutional quality generally positively impact economic growth. Continuous innovation is the lifeblood of a competitive economy. Furthermore, and arguably, the existence of institutions of governance of quality can be a catalyst for emerging economies to transition up the universal innovation value chain. In this context, we investigate temporal causal interactions among institutional quality, innovation, and economic growth for developing countries (DCs) spanning the period of 2005–2020. Employing a vector error-correction model (VECM), we find that for each case and specification (49 instances), there is evidence of the long-run causality from institutional quality and innovation to economic growth. Stated another way, in the long run, institutional quality and innovation Granger-cause economic growth. However, the short-run causality results differ depending on the specific measures of innovation and institutional quality. The strongest short-run conclusion is support for the feedback hypothesis for economic growth and innovation where there is a strong endogenous relationship between innovation, institutional governance, and economic growth. The empirical analysis shows over 70% of our observations support that economic growth and innovation jointly determine each other in the short run. The results suggest that DCs should develop and pursue long-term growth strategies that simultaneously develop innovation and improve institutional governance. [ABSTRACT FROM AUTHOR]

This study examines key factors in the economic growth of middle-income countries over the period 1970–2017. The variables considered are ICT infrastructure development, taxation revenue, government expenditure, gross capital formation, foreign direct investment, and inflation. This study considers interlinkages between the macroeconomic variables noted above. The purpose of this study is to determine: (1) if there is causality between the variables and (2) the direction of any causality. Using a panel vector error-correction model, we find both short-run and long-run relationships between the variables. In each specification, we find that ICT infrastructure development, taxation revenue and the four macroeconomic variables all stimulate economic growth in the long run. This suggests that policymakers should curate an integrated and holistic policy framework pertaining to taxation, ICT infrastructure development and other macroeconomic policies to create a vibrant national economic ecosystem that would ensure the sustained economic growth of middle-income countries. [ABSTRACT FROM AUTHOR]

This article postulates strong endogenous relationships in lower income countries between institutional quality, financial development and sustained economic growth. These associations were investigated using the vector‐error correction model (VECM) and Granger causality method for a sample of 79 countries from 2005 to 2022. The findings show that (1) these variables reinforce each other in the short run. (2) In the long run, both institutional quality and financial development can fuel economic growth. (3) The positive effect of institutional quality on economic growth is greater than that of financial development. Policy implications of these findings are that careful attention should be paid to co‐development policies to enhance the institutional quality and the financial system in these economies. Policies should also consider economic growth strategies to enable sustainable economic growth rates. [ABSTRACT FROM AUTHOR]

The information and communication technology (ICT) revolution has brought positive spill-over effects on institutions and economies across the globe, but it has also increased the information gaps between countries. A key characteristic that may explain these widening gaps is the deepening endogenous relationships between ICT infrastructure, institutions of governance, and economic growth in many developing countries. Thus far, the links between these variables have not been discernible in developing economies, so few studies have explored them. In this paper, we investigate the possible Granger causal relationships among institutional quality, economic growth, and ICT infrastructure development for a sample of developing countries for the period from 2005 to 2019. The application of a vector error-correction model reveals strong inter-relationships between all the variables in the short run. In the long run, institutional quality and ICT infrastructure development stimulate economic growth. These complex relationships are explored and lessons are drawn for policymakers. We assess interactions between institutional quality and ICT infrastructure as well as economic growth. We deploy a panel Granger causality test for low- and lower middle-income countries from 2005 to 2019. We show that there is Granger causality between the variables in the short and the long term. For each case and specification, there is support for the hypothesis that ICT infrastructure and institutional quality both Granger-cause growth in the economy. In the short run, we note a feedback relationship between institutional quality and economic growth. Other short-run results are more varied, based on the particulars proxies for institutional quality and ICT infrastructure. [ABSTRACT FROM AUTHOR]

This paper examines the short-term and long-term dynamics between public sector debt, economic openness, and economic growth in European countries between 1990 and 2018. Using the panel vector error correction model, we find that both public debt and economic openness contribute to long-term economic growth in European countries. The empirical analysis also shows that there are strong endogenous links between public debt, economic openness and economic growth in Europe in the short run. These relationships suggest that governments in Europe should give careful attention to the co-curation of macroeconomic policies pertaining to public sector spending/taxation, economic openness, and economic growth. [ABSTRACT FROM AUTHOR]

We study the interactions between institutional quality, government expenditure, tax revenue, and economic growth in low-income countries (LICs) and lower middle-income countries (LMICs) over 2005–2019. The primary distinguishing factor of the paper is the simultaneous inclusion of all these four variables in a single temporal causal model. A second distinguishing feature of the paper is its focus on LICs and LMICs and a clear distinction between short-run and long-run results. Tax revenue is considered as general revenue as well as revenue from taxes on international trade, and customs and other import duties. Our results show that institutional quality, government expenditure, tax revenue, and economic growth often have endogenous links among each other in the short run. These results are not always uniform across our samples. On the other hand, a robust and uniform result across all samples is that the three covariates are important drivers of long-term economic growth. Thus, the co-development of stronger institutions and more effective fiscal policies (relating to taxes and government expenditure) appear to be key in procuring sustained long-term economic growth of countries. [Display omitted] [ABSTRACT FROM AUTHOR]

Mounting scientific evidence shows that CO2 emissions have been a primary cause of climate change, which has harmed the quality of human life and economic development. To reduce the carbon footprint, many developed economies have undertaken various institutional reforms to transition their economies to clean energy sources that are compatible with sound economic growth. The picture is different for many developing countries whose economic development in the past has been dependent on fossil fuels or hydrocarbon energy sources, which have affected their climate adversely. The impact of the quality of the latter countries' institutions on both climate change and economic growth simultaneously has been under-studied. To address this literature gap, this paper examines the links between institutional quality, CO2 emission, and economic growth in developing countries. Using the Granger Causality test, the study reveals that there is strong interdependence among the variables. Hence, policymakers in these countries should implement holistic co-development policy frameworks that strengthen the institutions of governance as well as adopting clean-energy industrial strategies that minimize CO2 emissions. Such policies positively impact economic growth in these countries. Note : The hypotheses are: H 1A +: Economic growth (positively) Granger-causes CO2 emission.H 1A −: Economic growth (negatively) Granger-causes CO2 emission.H 1B +: CO2 emission (positively) Granger-causes Economic Growth.H 1B −: CO2 emission (negatively) Granger-causes Economic Growth.H 2A +: Institutional quality (positively) Granger-causes economic growth.H 2A −: Institutional quality (negatively) Granger-causes economic growth.H 2B +: Economic growth (positively) Granger-causes institutional quality.H 3A +: Institutional quality (positively) Granger-causes CO2 emission.H 3A −: Institutional quality (negatively) Granger-causes CO2 emission.H 3B +: CO2 emission (positively) Granger-causes CO2 institutional quality. Image 1 • We evaluate the links between CO2 emission, institutional quality, and economic growth. • We use data covering 67 developing countries for the period 2005–2018. • A dynamic model is used to detect the direction of temporal causality between the variables. • We find strong endogenous relationships between the variables. • We suggest policies to strengthen the institutions of governance and keep CO2 emissions in check. [ABSTRACT FROM AUTHOR]

Economic growth in the Eurozone has been lacklustre over the last two decades due to increased global competition from economic players in other regions, economic and financial crisis, and political uncertainties within the zone. To increase the global competitiveness of the region, the European Union launched the Europe 2020 Strategy to raise the level of entrepreneurship and innovation, which are purported to be key drivers of economic growth. The main purpose of this paper is to investigate whether this assertion is true. Thus, the paper investigates the Granger causal relationships among entrepreneurship development, innovation, and economic growth for a sample of the Eurozone countries for the period 2001–2016. Using a vector error-correction model, the study finds that in the long run, both entrepreneurship and innovation stimulate economic growth. In the short run, strong causal links exist but are not always uniform. The results reveal that Eurozone countries should indeed base their growth strategies on policies that promote innovation and policies that create incentives for entrepreneurship. [ABSTRACT FROM AUTHOR]

Over the past 30 years, the economies in Europe have undergone major transformations that have been powered by diffusion of information and communication technology (ICT), intensification of innovation, and reforms in the financial sector to support innovative endeavors. The primary objective of this study was to examine the causal relationships among ICT diffusion, innovation diffusion, venture capital investment, and economic growth for 25 countries in Europe for the period from 1989 to 2016. Using a vector error‐correction model, the study examines the underlying short‐run and long‐run relationships for the above variables. The empirical analysis shows that in the long run, venture capital investment, ICT diffusion, and innovation diffusion have significant impacts on economic growth in Europe. However, in the short run, the direction of the causality varies depending on the specific measures of ICT diffusion and innovation diffusion that are utilized. Results from this study provide valuable insights into the types of policies that will contribute to sustainable economic growth in Europe. [ABSTRACT FROM AUTHOR]

Many studies have investigated the causal relationship between economic growth and the depth in the stock market, between economic growth and trade openness, or between economic growth and foreign direct investment. Advancing on earlier work, this paper uses vector error-correction and cointegration techniques in order to establish whether there is a long-run equilibrium relationship between all four variables. We consider a sample of 25 ASEAN Regional Forum (ARF) countries which are studied over the period 1961–2012. Our analysis, which combines various strands of the literature, establishes the direction of causality between the variables. Policy recommendations include the encouragement of mutual fund investment by smaller investors to increase stock market depth as well as methods to increase foreign direct investment, such as tax holidays. [ABSTRACT FROM AUTHOR]

There has been a significant transformation in the diffusion of information and communication technology (ICT), development of the venture capital industry, and economic growth in European countries over the past three decades. Using vector error-correction modelling, we examine the possible interrelations between venture capital investment, ICT infrastructure, and economic growth, based on annual data from 25 European countries between 1989 and 2016. Specifically, we examine the direction of Granger causality between these variables. We find that the variables are cointegrated. Our empirical results also illustrate that both economic growth and the development of ICT infrastructure impact all stages of venture capital investment (early, late, and overall VC investment) in the long run. The study also shows that economic growth and late-stage venture capital investment impact internet usage; and internet usage and late-stage venture capital impact economic growth in the long run. The results also reveal strong inter-linkages between the variables in the short run. Overall, empirical results suggest that policy-makers should give special attention to an integrated policy approach for the co-development of the ICT infrastructure, venture capital, and economic growth in Europe. Image 1 • We assess the causal relationship between venture capital investment, ICT infrastructure, and economic growth. • The empirical investigation follows 25 European countries between 1989 and 2016. • We use a panel vector autoregressive model for detecting the direction of causality between the variables. • The study reveals the existence of both unidirectional and bidirectional causality between the variables. [ABSTRACT FROM AUTHOR]

The energy and financial sectors have undergone rapid transformations over the last five decades and these changes have had a major impact on economic growth rates across the globe. In this paper, using a panel vector error-correction model, we study the interactions between energy consumption patterns, financial sector development, and economic growth in 35 Financial Action Task Force (FATF) countries over 1961–2015. We focus on the direction of Granger causality between the variables. Our empirical results show that both energy consumption patterns and financial sector development are significant long-term drivers of economic growth in the FATF countries. Thus, the sophistication of the financial sector and resources to develop the energy sector will contribute to enhancing the economic prosperity of the FATF countries in the long run. [ABSTRACT FROM AUTHOR]

This article employs panel unit root and panel cointegration tests to determine the interactions between innovation, financial development, and economic growth in 49 European countries between 1961 and 2014. The results suggest a cointegrating relationship between the three series. A vector error-correction model is estimated, showing that financial development and innovation are both causative factors of economic growth in the long run. Thus, a policy focus on financial development and innovation is appropriate as an approach to boost the economic performance of these countries. [ABSTRACT FROM AUTHOR]

This paper examines the cointegrating and causal relationships between insurance market development (IMD) and economic growth based on panel-data estimation techniques. It also investigates the dynamic interrelationships amongst a number of important macroeconomic variables on IMD-growth nexus. The sample consists of 26 countries observed over the period 1980-2013. We use six different indicators of IMD, covered under both insurance density and insurance penetration, to validate the robustness of our results. Our findings affirm a long-run equilibrium relationship between insurance market development, economic growth, and six other macroeconomic variables selected, namely broad money supply (relative to national income), real interest rates, inflation rates, urban population growth, youth dependency ratios, and government consumption expenditure (relative to national income). We use a panel vector auto-regression model to examine the nature of Granger causality among the variables. Most significantly, we find that IMD and some macroeconomic variables Granger-cause economic growth in the long run, irrespective of which measure of IMD we use. [ABSTRACT FROM AUTHOR]

This study investigates the Granger causal relationships between innovation, economic growth, information and communication technology (ICT) infrastructure, government consumption expenditure, gross capital formation, foreign direct investment, and trade openness. Using panel data from 32 high-income OECD countries from 1970 to 2016 and panel cointegration techniques, results show that these variables are cointegrated. The Granger causality tests further confirm that, taking other variables into account, there is bi-directional causality between innovation and economic growth in the long run. Moreover, both economic growth and innovation are generally impacted in the long run by the other variables that we consider. The short-run causality results reveal a diverse pattern of short-run adjustment dynamics among the variables including the possibility of feedback among some of them. Important policy implications for sustainable economic growth and higher innovation suggest elevating government consumption expenditure, increasing capital formation, further opening of countries' economies to trade, as well as improving ICT infrastructure. [ABSTRACT FROM AUTHOR]

Venture capital (VC) is a key catalyst for nurturing start-up firms with high-growth potential to undertake innovative endeavors that contribute to national wealth. Existing literature concentrates on the impact of venture capital on firm-level performance. Unlike much of the earlier work, we conduct a macro study examining short-term and long-term relationships between VC investment, the state of the financial sector, and economic growth in 20 European single market countries between 1989 and 2015. We show that major transformations (political, economic, financial and institutional) over the sample period in the Eurozone region have resulted in the data series used in the study (economic growth, financial sector development, and VC investment) to be non-stationary. As such, the vector error-correction model (VECM) and Granger-Causality test are used to examine short-term and long-term relationships between VC investment, financial development, and economic growth for the sample countries. The findings suggest that economic growth strategies and financial sector reforms are critical for a vibrant venture capital industry. In the short term, there are bi-directional relationships between some of the variables. These results suggest that plans to create a vibrant venture capital industry will reinforce financial sector development and economic development, creating a more sustainable economic development model for countries in the Eurozone region. [ABSTRACT FROM PUBLISHER]

This paper examines the mutual relationship between broadband penetration, financial development, and economic growth in the 22 Arab League countries for the period between 2001 and 2013. Financial development (represented by broad money supply, claims on the private sector, domestic credit to the private sector, domestic credit provided by the banking sector, market capitalization, turnover ratio, and traded stocks) is assessed both individually, and by a composite index. Our results reveal that there is a long-run equilibrium relationship between broadband penetration, financial development, and economic growth. Additionally, we use a panel vector autoregression model to reveal the nature of Granger causality between the covariates. The most important insight of this study is the presence of bidirectional causality from economic growth to broadband penetration in the long run. In addition, we find that financial development together with broadband penetration Granger-cause economic growth in the long run. [ABSTRACT FROM PUBLISHER]

The paper investigates causal relationships between trade openness, foreign direct investment, financial development, and economic growth in 19 Eurozone countries over the period 1988–2013. Using a panel vector error-correction model (VECM), the empirical results show that these variables are cointegrated. The study shows that a combination of opening the Eurozone countries for trade and fostering their financial and economic development have elevated inflows of foreign direct investment into the region in the long run. At the same time, increasing inflows of foreign direct investment in the short run have propelled economic growth, which in return has strengthened the role of financial development and international trade to sustain economic growth in the region through feedback effects. The empirical results have important policy implications for countries in the Eurozone, especially those who face challenges as a result of lack of confidence in their financial system and those who face a sovereign debt crisis. [ABSTRACT FROM PUBLISHER]

Rapid technological development over the last three decades has enabled different sectors of the economy to be seamlessly integrated. This has had an important spill-over impact on the wealth of countries across the globe. In this paper we examine the inter-linkages between the banking sector and the insurance industry on the economic growth of the G-20 countries between 1980 and 2014. Using the vector auto-regression model and the Granger causality test, the study shows that in the long run, developments in the banking sector and insurance industry have had a significant impact on the economic growth of the G-20 countries. In the short term, the inter-relationships between the three factors prove to be more complex in that they differ by countries in different stages of development. Based on the empirical findings, this paper discusses the policies and strategies policy makers and banks and insurance companies should have in place in order to create sustained economic growth in an increasingly inter-connected world. [ABSTRACT FROM AUTHOR]

Using a panel vector auto-regressive model, we study interactions between innovation, financial development and economic growth in 18 Eurozone countries between 1961 and 2013. We focus on whether causality runs between these variables both ways, one way, the other way or not at all. Our empirical results show that development of the financial sector and enhanced innovative capacity in the Eurozone contributes to long-term economic growth in the countries in the region. [ABSTRACT FROM PUBLISHER]

This paper employs Granger causality tests to examine linkages between economic growth, measured by changes in real per capita GDP, financial maturity, measured by an index - calculated by using principal component analysis, and the diffusion of telecommunications technology (DTT) in 21 Asian countries over the period 1961-2012. We advance on previous studies with (a) advanced estimation procedures (panel cointegration techniques and panel Granger causality tests); and (b) the inclusion of all three potentially two-way interacting variables conjointly. Our findings are not uniform: they vary based on the region and country that is studied. We find that in the case of Bangladesh, Philippines, Singapore, Saudi Arabia, and United Arab Emirates and for Total Asia, financial maturity leads to economic growth, lending support to the supply-leading hypothesis. This implies that economic growth depends upon the level of financial maturity of the countries. In the case of Hong Kong, South Korea, Pakistan, Sri Lanka, Indonesia, and Vietnam, economic growth leads to financial maturity, lending support to the demand-following hypothesis. This implies that economic growth determines the level of financial maturity. For Bangladesh, Philippines, Singapore, Saudi Arabia, United Arab Emirates, and Total Asia, financial maturity leads to economic growth, in line with the supply-leading hypothesis. In case of China, Hong Kong, Japan, India, Iran, Thailand, Kuwait, East Asia, South Asia, and West Asia, economic growth and financial maturity cause each other, lending support to both the demand-following and supplyleading hypotheses. Furthermore, in the case of India, Malaysia, and Philippines, economic growth leads to DTT, congruent with the demand-following hypothesis. On the other hand, in the case of Bangladesh, Sri Lanka, Singapore, Thailand, Saudi Arabia, United Arab Emirates, South Asia, South East Asia, and Total Asia, DTT leads to economic growth, lending support to the supplyleading hypothesis. By contrast, for China, Hong Kong, Japan, South Korea, Qatar, and East Asia, economic growth and DTT are self-reinforcing and subject to feedback consistent with both the demand-following and supply-leading hypotheses. Finally, in the case of Hong Kong, Pakistan, Indonesia, Philippines, Thailand, Vietnam, United Arab Emirates, South East Asia, and Total Asia, DTT leads to financial maturity, lending support to the supply-leading hypothesis, while for China, India, Kuwait, Qatar, and West Asia, financial maturity leads to DTT, lending support to the demand-following hypothesis. In case of Malaysia, financial maturity and DTT cause each other thus supporting both the demand-following and supply-leading hypotheses. [ABSTRACT FROM AUTHOR]

The article investigates causal relationships between internet penetration rates, financial depth and per capita economic growth in the Next-11 countries. Using panel vector autoregressive (VAR) approaches, our empirical results show that these variables are cointegrated. Moreover, we find bidirectional causality between internet penetration rates and economic growth, and between financial depth and economic growth in the short run. [ABSTRACT FROM AUTHOR]

This paper examines linkages among transportation intensity, the extent of urbanization, CO 2 emissions, and economic growth. We use two measures of transportation intensity: (i) per-capita rates of utilization of air-passenger transport facilities and (ii) per-capita rates of utilization of air-freight transport facilities. By studying the G-20 countries over the period 1961–2012 and employing a panel vector auto-regressive model for detecting Granger causality, we find a network of causal connections among these four variables in the short run. We also find that economic growth tends to converge to its long-run equilibrium path in response to changes in the other variables. Our fundamental conclusion is that passenger carriage intensity should be improved in the developing countries within the G-20 for the purpose of propelling economic growth. [ABSTRACT FROM AUTHOR]

This paper investigates causal relationships between information and communications technologies (ICT) infrastructure, financial development, and economic growth in Asian countries over the twelve-year period 2001–2012. Using panel cointegration techniques, our empirical results show these variables are cointegrated, with a myriad of short-run and long-run causal links between ICT infrastructure and economic growth, between financial development and economic growth, and between ICT infrastructure and financial development. [ABSTRACT FROM AUTHOR]

Purpose – The purpose of this paper is motivated by research-based assertions that: the causes of economic growth in countries like India are not well understood; they are not elucidated by using simple bivariate relationships between economic growth and other variables, taken one at a time; and dynamic linkages between growth, trade openness and financial sector depth are required for any comprehensive treatment of this inquiry. Design/methodology/approach – This paper investigates the pivotal role of financial depth (defined as the relative importance in the economy of the banking sector or the stock market) and whether it bears any evidential relationship to trade openness and economic growth during the era of Indian post-globalization since 1990. Two key objectives are to uncover whether there is a long-run relationship between the variables and whether they can be said to cause one another. Autoregressive distributive lag (ARDL) bounds testing procedures and vector autoregressive error correction model (VECM) approaches were used to derive the results. Findings – This paper affirms that the variables are indeed formally cointegrated. It was also found that trade openness, economic growth and financial sector depth Granger-cause each other. Practical implications – This paper demonstrates that greater trade openness can predictably accelerate India’s economic growth. If policymakers wish to maintain sustainable economic growth in India, they can do so by encouraging both freer trade and financial market development in the long run. Originality/value – No investigation of this type and sophistication has hitherto been performed for India. The methods developed for this study can also be applied to any of the vast range of countries for which dynamic growth-openness-financial depth interactions have not already been investigated. [ABSTRACT FROM AUTHOR]

This paper examines the nexus between the development of telecommunications infrastructure (DTI), economic growth, and four key indicators of the operations of advanced economies. It employs a panel vector auto-regressive model to detect causality and examine long-run relationships between variables in the G-20 countries for the period 2001–2012. Evidence is found that DTI, measured through six indicators, may cause economic growth and that causation may be bidirectional. Not surprisingly, the exact nature of causality depends on the group of countries considered and on the definition of DTI. [ABSTRACT FROM AUTHOR]

This paper examines the relationship between banking sector development, stock market development, economic growth, and four other macroeconomic variables in ASEAN countries for the period 1961–2012. Using principal component analysis for the construction of the development indices and a panel vector auto-regressive model for testing the Granger causalities, this study finds the presence of both unidirectional and bidirectional causality links between these variables. The study contributes to understanding the importance of the interrelationship between the variables and combines the different strands of the literature. It also contributes to the literature by focusing on a group of countries that have not been studied before. One particular policy recommendation is to make the banking sector more accessible for those country's inhabitants that do not have bank accounts. Another policy recommendation is to nurture stock market development, which will facilitate the increased raising of capital for investment purposes to enhance economic growth. [ABSTRACT FROM AUTHOR]

This paper examines the linkages between the development of telecommunications infrastructure (DTI), economic growth, and four key indicators of operation of a modern economy: gross capital formation, foreign direct investment inflows, urbanization rates, and trade openness. By studying the G-20 countries over the period 1991-2012 and employing a panel vector auto-regressive model for detecting Granger causality, we find a network of long-run causal connections between these variables, including bidirectional causality between DTI and economic growth. [ABSTRACT FROM AUTHOR]

In many countries, urbanization is seen as an important policy tool to ensure sustained economic growth. While urbanization can lead to positive economic outcomes, unfettered migration into urban areas without appropriate infrastructure support such as information and communication technology (ICT) infrastructure and transportation infrastructure can lead to negative side effects such as congestion, formation of slums, and other diseconomies of scale. The latter can actually lower economic growth. This study examines the relationships between urbanization, transportation infrastructure, ICT infrastructure, and economic growth in the G-20 countries from 1961 to 2016. Using the panel vector error-correction model, the study shows that there is a myriad of temporal causal relationships between the four variables in both the short and long run. The key policy implication of these results is that long-run economic growth in the G-20 countries depends on the co - development of policies in creating a vibrant urban ecosystem that is enabled by intelligent transportation systems and underpinned by a sound ICT infrastructure plan. Note 1 : PEG is the per capita economic growth; TRA is transportation infrastructure; ICT is information and communication technology infrastructure; and URB is urbanization. Arrows indicate possible causal links. Note 2 : H 1A, B : Transportation infrastructure Granger-causes economic growth and vice versa. H 2A, B : ICT infrastructure Granger-causes economic growth and vice versa. H 3A, B : Urbanization Granger-causes economic growth and vice versa. H 4A, B : Transportation infrastructure Granger-causes ICT infrastructure and vice versa. H 5A, B : Transportation infrastructure Granger-causes urbanization and vice versa. H 6A, B : ICT infrastructure Granger-causes urbanization and vice versa. [Display omitted] • Linkages among urbanization, transportation and ICT infrastructure, and economic growth are considered. • The sample comprises G-20 countries over 1961-2016. • Panel vector error-correction model is used to examine causality. • Temporal causality runs from the covariates to economic growth in the long run. • Short-run results depend on the specific measure of ICT infrastructure utilized. [ABSTRACT FROM AUTHOR]

• We consider the interdependence between ICT infrastructure, financial inclusion, and economic growth. • We use data from 20 Indian states from 1991 to 2018. • We have found endogenous relationships between the variables and have determined the direction of causal links. • We suggest policies to elevate economic development to the same level as ICT infrastructure development and financial inclusion. The roles played by the financial sector and of information and communication technology (ICT) in economic growth are well established in the literature. With increasing development and the convergence between the financial and ICT platforms, digital financial systems emerged which have opened new opportunities to close the wealth gaps between the "haves" and "have-nots" in the developing world. In this paper, we examine the short-run and long-run dynamics between economic growth, financial inclusion initiatives, and ICT infrastructure development in 20 Indian states over the period from 1991 to 2018. Using the Granger-causality technique, we show evidence of strong temporal causality between these variables in the short and long term. Our empirical results demonstrate that careful co-curation of ICT infrastructure development, financial inclusion initiatives, and economic growth strategies is essential for these Indian states to achieve sustainable economic development. [Display omitted] [ABSTRACT FROM AUTHOR]

Note 1 : OPE is trade openness, FDI is foreign direct investment, ICT is information and communication technology (connectivity and penetration), and PEG is economic growth. Note 2 : Arrow indicates possible direction of a causal link. Note 3 : H 1A, B : ICT Granger-causes economic growth and vice versa. H 2A, B : FDI Granger-causes economic growth and vice versa. H 3A, B : Trade openness Granger-causes economic growth and vice versa. H 4A, B : FDI Granger-causes ICT and vice versa. H 5A, B : Trade openness Granger-causes ICT and vice versa. H 6A, B : Trade openness Granger-causes FDI and vice versa. [Display omitted] The global economy is increasingly integrated due to the information and communication revolution. Countries have become more reliant on global supply chains that are driven by digital platforms. As a result, information and communication technology (ICT), international trade, and foreign direct investment (FDI) appear to have become drivers of economic growth. In this paper, we investigate whether this logical assertion is true. More importantly, we examine the interlinks among the variables in the short and long run. Directions of causal links among these variables are complex and sometimes subtle and it is therefore important to establish them through rigorous empirical analysis. For our study, we consider the G-20 countries over 1961–2019. Our study reveals a myriad of underlying temporal links among the variables. The key policy implication of these results is that long-term growth in this group of countries depends on greater co-development and harmonization of policies on ICT, FDI, and trade openness. Moreover, policymakers should be cognizant of the short-run connections between the covariates. [ABSTRACT FROM AUTHOR]

Intensification of research and development (R&D) and the information and communication technology (ICT) infrastructure have been regarded as important drivers for sustained economic growth across the globe. In this study, using a panel vector autoregressive model, we examine the endogenous relationships between R&D, ICT infrastructure development and economic growth in the OECD countries between 1961 and 2018. The empirical results show that both R&D and ICT infrastructure development contribute to long-term economic growth in the OECD countries. The short-run dynamics show that complex inter-relationships between these variables exist. The key insight from this study is that to attain sustained economic growth, policymakers in the OECD economies should put in place an integrated framework that takes into consideration co-development policies pertaining to R&D investment, ICT diffusion and economic growth-enhancing initiatives. Image 1 • The study investigates relationships among R&D, ICT and economic growth. • We cover the OECD countries over 1961–2018. • There is long-run temporal causality running from R&D and ICT to economic growth. • Short-run results are non-uniform and depend on the specific use of R&D. [ABSTRACT FROM AUTHOR]