Does fiscal federalism matter for economic growth? Evidence from the United States

Fiscal federalism can improve macroeconomic performance by increasing the efficiency and performance of the public sector. The aim of this study is to analyse the long-term relationship between fiscal federalism and economic growth during the period of 1961-2018 in the United States. In this analysis, first of all, the Hatemi-J Co-integration test was used to determine the long-term relationship between the variables, and accordingly it was determined that there is a long-term relationship between the variables at the 1% significance level. Then, the causality relationship between variables was tested using Hacker-Hatemi-J bootstrap causality analysis and no causality relationship was found among the variables. Finally, a time-varying causality test was applied, since the causality relationship between variables may lose its validity at some time points, especially in global economies. It was found that there is a causality relationship between variables when sub-periods are considered

Economic literacy: A study on tradespeople

In the study, the economic literacy level was measured over the tradesmen in Gaziantep, and it was found, that the economic literacy level of the tradesmen was high. In the difference tests, economic literacy level was found to be higher in tradesmen with relatively high education levels, in business owners compared to employees. There wasn't a difference according to gender. Tradesmen with high economic literacy levels have the power to affect micro and macroeconomic indicators in the medium and long term. Policymakers should consider this in their decision that may directly/indirectly affect the craftsman class and should be supported to increase their knowledge level

Does country-level governance matter for national development? An analysis on the founding states of Turkic council

This study aims to examine if there is a long-term relationship between the participation of 'country-level governance' and 'national development' through the data of founding countries of the Cooperation Council of Turkish Speaking States (Turkic Council)? The hypothesis of there is a significant long-term relationship between country-level governance and national development was tested via the panel data analysis of four Turkic countries: Azerbaijan, Kirgizstan, Kazakhstan, and Turkey. The compounds of the 'Worldwide Governance Indicators' were used as the independent variable, and 'Human Development Index' as the dependent variable. A Panel Causation Test was conducted to investigate if there are long-term co-integration and causation between country-level governance and national development. Our results found that there is significant causation between the country-level governance indicators of 'Voice and Accountability' and 'Government Effectiveness' with the 'national development' process. Thus, our findings will contribute to both academics who study the effects of governance on development and to policymakers who utilize these sources for improved political and social development with the aim to prevent poverty and improve access to basic human needs

How the consequences of the COVID-19 pandemic affected housing sector? Empirical evidence from Turkey

PurposeThis study aims to analyze the relationship between the consequences of the pandemic and the housing sector with econometric tests that allow for structural breaks.Design/methodology/approachStudy data were collected weekly between March 9, 2020, and February 4, 2022, and analyzed for Turkey. In the model of the study, housing loans were used as a housing market indicator, and the number of new deaths and new cases were used as data related to the pandemic. The exchange rate, which affects the use of housing loans, was added to the model as a control variable. This study was analyzed to examine the relationship between the pandemic and the housing sector, time series analysis techniques that allow structural breaks were used.FindingsBased on the result of the analyses, it was concluded that there is a long-run relationship between the pandemic stages and housing markets along with structural breaks. As a result of the time-varying causality test developed to determine the causality relationship between the variables and its direction, a bidirectional causality relationship was identified between all variables at certain dates.Research limitations/implicationsStudy data were collected weekly between March 9, 2020, and February 4, 2022, and analyzed in the case of Turkey.Practical implicationsBased on results of the study, it is recommended that policy makers and market actors take into account extraordinary situations such as pandemics and create a budget allocation that is always ready to use for this purpose.Originality/valueThe empirical examination of the relationship between the pandemic and the housing sector in Turkey provides origina

Causation between energy consumption and climate change in the countries with the highest global climate risk

The study aims to examine if there is causation between "energy consumption" and "climate change" through the data of ten countries with the highest Climate Risk Index (CRI) scores. The ten highest CRI score countries include Puerto Rico, Myanmar, Haiti, Philippines, Mozambique, The Bahamas, Bangladesh, Pakistan, Thailand, and Nepal. The annual data for the years 2005-2019 was used because of the data constraints. CRI is selected as the dependent variable. As for the independent variables, the ratios of the energy consumption of the key sectors indicated by the International Energy Agency (IEA) to the total energy consumption are chosen. These key sectors in energy consumption are industry (IND), transportation (TRA), trade and public services (TPS), and housing (HOU). Economic growth (EG), which is one of the main factors affecting climate change in the literature, is included in the model as the control variable. According to the results of the Dumitrescu-Hurlin causality test, there is one-way causality from transportation towards CRI, but not any causality between others. It is evaluated that since the transportation sector is heavily dependent on fossil fuels, it has a strong effect on the amount of CO2 emissions and a significant determining role on climate change

Is ecological footprint related to foreign trade? Evidence from the top ten fastest developing countries in the global economy

An ecological footprint (EF) refers to the resources that are used by the people or production companies in an area for commerce, which includes the production of food, water resources, and housing; however, it also in-cludes foreign trade of the products produced. The present study aims to examine how foreign trade affects EF and recommend specific new policies or revisions to policies to reduce EF. EF is used as an environmental in-dicator in the present study. The top 10 fastest developing countries (Argentina, Brazil, China, India, Indonesia, Mexico, Poland, South Africa, South Korea, and Turkey) comprised the study sample. The analyses were con-ducted using annual data for the period of 1990-2018; export and import data were taken as foreign trade variables, and their relationship with EF was tested through two different models. Renewable energy con-sumption (REC) and national income were modeled as control variables, and second-generation panel data analysis techniques were used. When the Durbin-Hausman cointegration test was applied, the data indicated a strong correlation between foreign trade and EF. According to the Common Correlated Effects (CCE) coefficient estimator, there was an inverse relationship between exports and REC and EF and a positive relationship with economic growth. When the Augmented Mean Group (AMG) coefficient estimator was applied, an inverse cor-relation was indicated among exports, imports, REC, and EF. Based on the findings of the analyses, it can be argued that policymakers and market players should manage foreign trade and environmental policies in a harmonized manner, and long-term planning should be shaped around these test results

How does terrorism hollow out the sustainable economic growth in big ten countries?

PurposeThe main objective of this research is to investigate if there is a long-term relationship between "terrorism" and sustainable "economic growth" in Big Ten Countries.Design/methodology/approachThe data was tested via Panel ARDL Analysis. The growth rate (GR) is the dependent variable, and the "Global Terror Index (GTI)" is the independent variable as the terror indicator. The ratio of Foreign Direct Investment (FDI) to the Gross Domestic Product (GDP), and the ratio of External Balance (EB) to Gross Domestic Product (GDP) are included in the model as the control variables due to their effect on the growth rate. A Panel ARDL analysis is conducted to examine the existence of long-term co-integration between terror and the economy. The planning of the study, the formation of its theoretical and conceptual framework, and the literature research were carried out in 2 months, and the collection of data, the creation of the methodology and the analysis of the analyzes were carried out in 2 months, the interpretation of the findings and the development of policy recommendations were carried out within a period of 1 month. The entire study was completed in a total of 5 months.FindingsResults showed that "Terror" has a negative impact on "Growth Rate" in the long term while "External Balance" and "Foreign Direct Investment" positively affect the Growth Rate. The coefficients for the short term are not statistically significant.Research limitations/implicationsThe sample is only limited to Big Ten including China, India, Indonesia, South Korea, Argentina, Brazil, Mexico, Turkey, Poland and South Africa. The period for annual data collection covers the years between 2002 and 2019 and due to the unavailability of data.Practical implicationsConsidering the risks and the mutual negative effect that turns into a vicious circle between terrorism and the economy, it is necessary to eliminate the problems that cause terrorism in the mentioned countries, on the one hand, and to develop policies that will improve economic performance on the other.Social implicationsTrustful law enforcement bodies have to be established and supported by all technological means to prevent terror. The conditions causing terror have to be investigated carefully and the problems causing terror or internal conflict have to be solved. International cooperation against terrorism has to be strengthened and partnerships, information, experience sharing have to be supported at the maximum levels.Originality/valueIt is certain that terror might have a negative influence on the performance of economies. But the limited number of studies within this vein and the small size of their sample groups mostly including single-country case studies require conducting a study by using a larger sample group of countries. Big Ten here represents at least half of the population of the world and different regions of the Globe

Stock Market Response to Coronavirus (COVID-19) Pandemic

Since the first day of its emergence, the novel type of coronavirus (COVID-19) has affected many areas of life. The economic and financial effects of the virus were as devastating as the damage it caused to human health. Accordingly, the aim of this study is to investigate the impact of the COVID-19 Pandemic on selected stock markets. Panel Data Analysis with structural breaks was used to identify the relationship between new case/death numbers and stock market indices. According to the results ofthe Westerlund-Edgerton Cointegration test, a break was observed in each of the stock markets included in the sample. As the break dates caused either positive or negative results in different countries, the prospects for the reasons for breaks formed either positively or negatively. The results of the analyses reveal that a significant worldwide health problem does not only affect social life and real economy, but it also causes decrease in prices in financial markets. Therefore, it may be considered by countries to take early financial measures andform some funds for pandemics. Investors may also allocate a specific portion of their portfolios to safe harbors such as gold and exchanges in this kind of panics

Testing the Persistence of Shocks on Ecological Footprint and Sub-accounts: Evidence from the Big Ten Emerging Markets

This study aims to analyze whether the effect of shocks on the ecological footprint and its sub-accounts in the Big Ten emerging economies is transitory or not. To this end, we employ the Fourier augmented Dickey-Fuller unit root test with a fractional frequency (FADF) and the recently developed fractional unit root test with a Fourier function (FUR) on annual data from 1961 to 2017. The results of the FADF unit root test suggest the validity of stationarity for about 30% of the series, while the FUR test indicates evidence of stationarity for almost all footprint series. These results imply that policy shocks to ecological footprints are temporary and policies to reduce environmental pollution in the Big Ten countries do not have the expected impact. Since shocks have temporary effects on ecological footprints, the Big Ten countries should not cause irreversible environmental degradation. The Big Ten governments need to implement permanent structural reforms to counteract the growth of the ecological footprint. Article Highlights The persistence of the ecological footprint and its six subaccounts in the Big Ten emerging markets is investigated. Novel Fourier-based and fractional frequency unit root tests are performed. Almost all series are stationary. Policy shocks will have temporary effects on the ecological footprint

The Cointegration and Causality Relationship between Bitcoin Prices and Borsa Istanbul Index

Changes in digital money prices, also called crypto money, have attracted investor's interest in recent years. Investors who want to gain returns from rapid price changes have turned to digital currencies, which is a new asset. In this direction, the possibility of being an alternative to the traditional securities of digital money has begun to be discussed. In the study, it was aimed to determine the cointegration and causality relation between Bitcoin prices and Borsa Istanbul. In this context, Engle-Granger and Gregory-Hansen cointegration tests and Toda-Yamamoto and Hacker-Hatemi-J causality tests were used. Findings show that there is no cointegration relationship between the Bitcoin prices and Borsa Istanbul index value in the medium and long run according to both cointegration tests; just Toda-Yamamoto causality test shows that there is a one-way causality relationship from Borsa Istanbul to the Bitcoin prices