This study examines and evaluates the dynamic causality relationship between immigration, unemployment, wages and GDP per capita in host countries with a focus on Australia. Previous research has indicated that the economic impact of immigration is significant; nonetheless, its effect on the labour market being positive or negative is inconclusive. This study uses a Vector Error Correction Model (VECM) to examine the dynamic short- and long-run nexus between these variables in Australia over the period 1980–2016. The paper provides clear evidence to policy makers on the positive spillover effect of immigration policies developed by the Australian government.

This empirical study undertakes a rigorous examination of the environmental sustainability impact of the Belt and Road Initiative (BRI) on its member countries. Employing a robust difference-in-difference quasi-natural experimental technique, our analysis spans a panel of 69 countries, covering the years from 1990 to 2022. Our primary metric for assessing ecological strain is the total Ecological Footprint consumption (EFP), measured in global hectares, which encapsulates the ecological exhaustion resulting from economic activities. This study not only contributes to the growing body of literature on the BRI’s economic, social, and environmental impacts but also distinguishes itself by providing experimental evidence of its environmental repercussions 10 years post-initiative commencement for member countries and 4 years for African countries in which the majority joined in 2018. Our findings reveal a significant increase in ecological footprint consumption among the BRI member countries after 2014, implying that participation in the BRI has contributed to heightened ecological depletion in these nations. Additionally, our analysis highlights the same impact for African countries, where ecological footprint consumption substantially escalated after joining the BRI in 2018. This pivotal discovery calls for the attention of not only the Chinese government, a driving force behind the BRI, but also all member countries partaking in this international collaboration. It signals a potential ecological deficit and future productivity impairment, urging stakeholders to reconsider and address the environmental ramifications of their endeavors.

This paper investigates the primary push factors that constitute home country-specific characteristics of Brazil, Russia, India, China, and South Africa (BRICS) and enhance their abilities as emerging market economies to engage in outward foreign direct investments (OFDI). The motivation behind this study was the need to fill the gap in the existing literature on the push factors from BRICS. A panel autoregressive distributed lag model was employed on these countries from 2000 to 2018, followed by an impulse response function analysis using a unique data set from a productive capacity index (PCI) and a derived index obtained from each country’s political risk ranking. A robust relationship was detected between OFDI and all of its short- and long-term push factors. The results reveal the relative strength of the long-term impact of the productive capacity and political stability indices supported by the divergent effect of their shocks on OFDI. This substantial contribution highlights the policy implication of how governments should promote their productive capacity and political stability to sustain a healthy investment environment for firms to expand their investments abroad.

This study examines the relationship between government spending, specifically military spending, government spending on health, government spending on education, and economic growth in Egypt over the period from 1980 to 2021. The paper utilizes a Granger causality test to detect the directional relationship between spending components and GDP growth. Furthermore, an autoregressive distributed lag (ARDL) model, including error-correction models, was established to determine the long- and short-term relationships among these variables. The study contrasts Wagner’s versus Keynes’s views of the government spending relationship with economic growth, with a greater emphasis on Keynes’s argument for military spending enhancing economic growth. While previous studies have investigated the relationship between aggregate spending and economic growth from a single or two-way direction of causality, the present study contributes to the literature by exploring the possibility of military spending crowding out spending on health and education and detecting this causality and dynamic relationship. The empirical results support the Keynesian view of causality from all government spending components to economic growth. However, short- and long-term analyses revealed a negative relationship between military spending and economic growth. Moreover, the short-term impact of government spending on education and health on economic growth is negative, but positive in the long-term. Finally, the causality test revealed that military spending influences health and education spending. Additionally, a unidirectional relationship exists between military spending and health expenditure, which requires further research. The policy implication of this study shows that although spending is exogenous to economic growth, it does not align with the Keynesian view of inducing growth. Instead, spending has negative current and future implications for economic development.

Purpose: This paper aims to investigate the host country determinants of Chinese Outward FDI (OFDI) and, given these determinants, examines whether Chinese OFDI in MENA is less than elsewhere. Design/methodology/approach: Data for the top 40 Chinese OFDI recipients including seven MENA countries from 2003 to 2012 were obtained. A pooled ordinary least squares estimation technique on the lagged explanatory variables and the lagged dependent variable – flows and stocks alternatively – with robust standard errors was used. Findings: Chinese OFDI is market, resource and efficiency seeking and is attracted by poor governance. The seven MENA countries seemingly receive significantly less Chinese OFDI flows compared to other countries. However, careful inspection shows that UAE is creating this bias. This maybe because exporting to UAE rather than licensing or FDI seems like the best scenario, or UAE is already satiated with FDI from other countries, or China is waiting for the right time to enter such an FDI-competitive market like that of UAE. Originality/value: Chinese OFDI is particularly important for MENA because it has a comparative advantage relative to other FDI source countries, and no research so far has investigated if it is less than in other regions, which could provide insights on how to attract it.