Natural resource abundance and broad-based financial development nexus in ASEAN countries: accounting for globalization and human capital

Sustainable resource consumption is important for the development of the financial system. Besides, an advanced financial system eases the transfer of revenues from production activities and export to productive investments. The influence of natural resource (NR) abundance on financial development (FD) is still an ongoing debate with conflicting results. However, this study applies a novel proxy for FD, which measures the efficiency, accessibility, and depth of the financial market and institutions. Therefore, the current study is a maiden attempt to explore the nexus between FD and NR abundance amidst globalization, human capital, and economic growth in ASEAN economies. Reliable panel econometric techniques, including second-generation unit root tests, Westerlund (2007) cointegration tests, and the Augmented Mean Group (AMG) estimator are employed on the data for the period 1990-2017. The preliminary tests affirm the existence of cross-sectional dependence, unit root, and cointegrating relationship among the variables. The findings from the study reveal that NR abundance reduces FD, while globalization, human capital and economic growth add to FD. A feedback causality exists between NR abundance and FD. Thus, this study argues that more investment in the manufacturing sector will ease the attainment of efficiency in financial sector accessibility and benefits from NR abundance

Modeling rates of inflation in Nigeria: an application of ARMA, ARIMA and GARCH models

Based on time series data on inflation rates in Nigeria from 1960 to 2016, we model and forecast inflation using ARMA, ARIMA and GARCH models. Our diagnostic tests such as the ADF tests indicate that NINF time series data is essentially I (1), although it is generally I (0) at 10% level of significance. Based on the minimum Theil’s U forecast evaluation statistic, the study presents the ARMA (1, 0, 2) model, the ARIMA (1, 1, 1) model and the AR (3) – GARCH (1, 1) model; of which the ARMA (1, 0, 2) model is clearly the best optimal model. Our diagnostic tests also indicate that the presented models are stable and hence reliable. The results of the study reveal that inflation in Nigeria is likely to rise to about 17% per annum by end of 2021 and is likely to exceed that level by 2027. In order to address the problem of inflation in Nigeria, three main policy prescriptions have been suggested and are envisioned to assist policy makers in stabilizing the Nigerian economy

Environmental preservation amidst carbon emissions, energy consumption, and urbanization in selected african countries: Implication for sustainability

On the quest for a clean and sustainable environment, the Sustainable Development Goal (SDG) 8 stipulates the need to reduce carbon emissions, decarbonize the energy system, improve energy consumption and ensure the attainment of sustainable energy. In the same vein, SDG 9 pertains to the prevention of environmental degradation, promoting biodiversity and preserving the ecosystem to support inclusive human and economic development. Given the hazardous impact of carbon emissions, if left unabated, and the benefits of preserving nature’s ecosystem, the motivation for this study hinges on analyzing factors that threaten a sustainable environment using two proxies of environmental degradation: carbon emissions and ecological footprint. With a battery of static and dynamic econometric techniques on a sample of 44 selected African countries from 1992 to 2016, findings reveal the following: (1) energy usage deteriorates the environment, and (2) urbanization has asymmetric effects on the environment. Controlling for per capita GDP, financial development and gross fixed capital formation, evidence suggests that per capita GDP has an asymmetric impact, financial development accelerates environmental degradation, while gross fixed capital formation intensifies a sustainable environment. Policy outcomes and implications for sustainability are discussed

Modeling rates of inflation in Nigeria: an application of ARMA, ARIMA and GARCH models

Based on time series data on inflation rates in Nigeria from 1960 to 2016, we model and forecast inflation using ARMA, ARIMA and GARCH models. Our diagnostic tests such as the ADF tests indicate that NINF time series data is essentially I (1), although it is generally I (0) at 10% level of significance. Based on the minimum Theil’s U forecast evaluation statistic, the study presents the ARMA (1, 0, 2) model, the ARIMA (1, 1, 1) model and the AR (3) – GARCH (1, 1) model; of which the ARMA (1, 0, 2) model is clearly the best optimal model. Our diagnostic tests also indicate that the presented models are stable and hence reliable. The results of the study reveal that inflation in Nigeria is likely to rise to about 17% per annum by end of 2021 and is likely to exceed that level by 2027. In order to address the problem of inflation in Nigeria, three main policy prescriptions have been suggested and are envisioned to assist policy makers in stabilizing the Nigerian economy

Trivariate modelling of the nexus between electricity consumption, urbanization and economic growth in Nigeria : fresh insights from Maki Cointegration and causality tests

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Natural Resource Abundance, Renewable Energy, and Ecological Footprint Linkage in MENA Countries

Apart from being vulnerable to the menace created by climate change, the MENA countries consume more of non-renewable energy despite their resource endowments and great renewable energy potentials. Energy consumption, natural resources and urbanization may add to environmental degradation since ecological distortions mostly emanate from human activities. This study investigates the effects of the aforementioned variables on the ecological footprint (EFP) in MENA countries. The findings confirm the Environmental Kuznets Curve (EKC) hypothesis and further reveal the negative impact of natural resources and economic growth on the environment. Renewable energy and urbanization reduce EFP. The Fully Modified Ordinary Least Squares (FMOLS) and Dynamic Ordinary Least Squares (DOLS) were applied to obtain the country-specific results which reveal that urbanization surge promotes environmental degradation in all the countries except in Algeria, Bahrain, Tunisia, and Morocco were it is not particularly harmful. Natural resource rent increases the EFP in the UAE, Oman, and Lebanon. Further findings suggest a feedback causality between urbanization, economic growth and EFP. Policy directions based on the findings are extensively discussed

The criticality of ICT-trade nexus on economic and inclusive growth

This paper contributes to the ICT-growth and trade-growth literature by investigating the ICT-trade nexus on economic and inclusive growth. That is, does ICT adoption enhance or distort the impact of trade on growth? With data on 53 African countries from 2005 to 2015 using mobile phones and fixed telephone subscriptions as indicators of ICT, findings provide evidence that (1) trade is a significant and positive predictor of growth, (2) the impact of trade on growth differs significantly across Africa’s sub-regions, (3) the effect of ICT adoption differs significantly across sub-regions, (4) ICT innovation enhances the impact of trade on growth, and (5) the ICT-trade nexus differ significantly across sub-regions. The study submits that these variables are critical drivers of economic and inclusive growth in Africa. However, the lack of consistency of the results across the sub-regions suggests that the level of ICT is still undeveloped. Policy implications are discusse

The determinants and interrelationship of carbon emissions and economic growth in African economies: Fresh insights from static and dynamic models

This study explores the interrelationship between CO2 emissions and economic growth in selected Africa economies from 1990 to 2014 providing evidence from both static and dynamic models. Results show that increases in energy use have a significant and positive effect on economic growth; which goes to show that growth in Africa is actually energy dependent. Further findings suggest that CO2 emissions have no significant contemporaneous effect, however, a significant and negative effect at a one-period lag on economic growth. The significance of the impacts is consistently confirmed by both the static and dynamic estimations. Also, trade adds to economic growth and also contributes to environmental deterioration in Africa. There is a dire need for Africa to adjust its energy portfolio by shifting to clean energy sources which will enhance sustainable economic growth without deteriorating the environment

Infrastructure development, human development index, and CO2 emissions in China: A quantile regression approach

This study investigates the relationships between infrastructure development, human development index (HDI), and CO2 emissions in China. Infrastructure has played an essential role in achieving social and economic developmental goals in China, but environmental pollution has significantly increased in the country in the last two decades. Our analysis uses time series data from 1990 to 2021 and quantile regressions, and we find that infrastructure has positive and statistically significant relationships with HDI, CO2 emissions, and GDP in all quantiles. Recent infrastructure upgrades improve living standards and increase HDI but damage the environment, and infrastructure is the main source of CO2 emissions in the country. Therefore, the government should invest in sustainable infrastructure to mitigate CO2 emissions. The government may consider infrastructure options such as low carbon transportation, including railway infrastructure, urban metros, and light rail

The Topographic Signature of Ecosystem Climate Sensitivity in the Western United States

It has been suggested that hillslope topography can produce hydrologic refugia, sites where ecosystem productivity is relatively insensitive to climate variation. However, the ecological impacts and spatial distribution of these sites are poorly resolved across gradients in climate. We quantified the response of ecosystem net primary productivity to changes in the annual climatic water balance for 30 years using pixel‐specific linear regression (30‐m resolution) across the western United States. The standardized slopes of these models represent ecosystem climate sensitivity and provide a means to identify drought‐resistant ecosystems. Productive and resistant ecosystems were most frequent in convergent hillslope positions, especially in semiarid climates. Ecosystems in divergent positions were moderately resistant to climate variability, but less productive relative to convergent positions. This topographic effect was significantly dampened in hygric and xeric climates. In aggregate, spatial patterns of ecosystem sensitivity can be implemented for regional planning to maximize conservation in landscapes more resistant to perturbations