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Developing countries, including Pakistan, need a considerable effort to withstand economic growth; however, these countries have to cope with greenhouse gases emission and other environmental concerns. Financial advancement gives rise to modern, sometimes even innovative and energy-efficient technologies and, thus, contributes to a decline in energy usage among market entities: organizations and households. The current study explores the nonlinear asymmetric relationship between economic growth (Y) and the selected exogenous variables in Pakistan by incorporating time series data spanning from 1971 to 2016. Economic growth was considered as a target variable, while energy consumption (EC), electric power consumption (EPC), financial development (FD), and energy imports (EM) were considered independent variables. To investigate cointegration among the given variables, a nonlinear ARDL bound testing approach was employed. BDS independence test was used to check the nonlinearity, and a structural break unit root test was used for testing data stationarity. The findings confirm the presence of co-integration in the selected variables. A symmetric unidirectional significant causality exists running from EPC to Y, while a bidirectional symmetric causality was found between FD and Y. In contrast, any negative shocks in EPC, FD, and EM were found to have a positive asymmetric effect on Y. Meanwhile, a neutral effect was found between EC and Y. The outcomes of this study can provide guidelines for future researchers and policymakers.
Imran Khan; Faheem Ur Rehman; Paula Pypłacz; Muhammad Asif Khan; Agnieszka Wiśniewska; Katarzyna Liczmańska-Kopcewicz. A Dynamic Linkage between Financial Development, Energy Consumption and Economic Growth: Evidence from an Asymmetric and Nonlinear ARDL Model. Energies 2021, 14, 5006 .
AMA StyleImran Khan, Faheem Ur Rehman, Paula Pypłacz, Muhammad Asif Khan, Agnieszka Wiśniewska, Katarzyna Liczmańska-Kopcewicz. A Dynamic Linkage between Financial Development, Energy Consumption and Economic Growth: Evidence from an Asymmetric and Nonlinear ARDL Model. Energies. 2021; 14 (16):5006.
Chicago/Turabian StyleImran Khan; Faheem Ur Rehman; Paula Pypłacz; Muhammad Asif Khan; Agnieszka Wiśniewska; Katarzyna Liczmańska-Kopcewicz. 2021. "A Dynamic Linkage between Financial Development, Energy Consumption and Economic Growth: Evidence from an Asymmetric and Nonlinear ARDL Model." Energies 14, no. 16: 5006.
The sustainable environment has been a desired situation around the world for the last few decades. Environmental contaminations can be a consequence of various economic activities. Different socio-economic factors influence the environment positively or negatively. Many previous studies have resulted in the efficient allocation of inputs as an environment-friendly component. This paper investigates the effects of energy efficiency on ecological footprint in the ASEAN region using balanced panel data from 2001 to 2019. First, this paper technically derives the energy efficiency, using the stochastic frontier analysis (SFA) of the translog production type of single output and multiple inputs. Findings of the SFA show that the Philippines and Singapore have the highest energy efficiency (94%) and Laos has the lowest energy efficiency (85%) in the ASEAN region. The estimated average efficiency score of the ASEAN region was around 90%, ranging from 85% to 96%, indicating that there is still 10% room for improvement in energy efficiency. Second, this study employed the panel autoregressive distributed lag (ARDL) model to explore the short run and long run impact of technically derived energy efficiency on ecological footprint in the ASEAN region. Results of the panel ARDL model show that energy efficiency is a reducing factor of ecological footprint in the long run. Moreover, energy efficiency plays a significant role to control the environmental contaminations. In addition, results of this study also explored that urbanization is an increasing factor of ecological footprint, and investment in agriculture is also beneficial for the environment. Moreover, to obtain the directional nature of the associations between the ecological footprint and its independent variables, this paper has employed the paired-panel Granger causality test. The results of the paired wise panel Granger causality test also confirm that the energy efficiency, urbanization, and investment in agriculture cause ecological footprint. Finally, this study recommends that efficient utilization of energy resources as well as investment in agriculture are necessary for sustainable environment.
Dilawar Khan; Muhammad Nouman; József Popp; Muhammad Khan; Faheem Ur Rehman; Judit Oláh. Link between Technically Derived Energy Efficiency and Ecological Footprint: Empirical Evidence from the ASEAN Region. Energies 2021, 14, 3923 .
AMA StyleDilawar Khan, Muhammad Nouman, József Popp, Muhammad Khan, Faheem Ur Rehman, Judit Oláh. Link between Technically Derived Energy Efficiency and Ecological Footprint: Empirical Evidence from the ASEAN Region. Energies. 2021; 14 (13):3923.
Chicago/Turabian StyleDilawar Khan; Muhammad Nouman; József Popp; Muhammad Khan; Faheem Ur Rehman; Judit Oláh. 2021. "Link between Technically Derived Energy Efficiency and Ecological Footprint: Empirical Evidence from the ASEAN Region." Energies 14, no. 13: 3923.
Whether better infrastructure influences Chinese export sophistication (ES) and diversification (ED) is an important question, which surprisingly remains unaddressed. The current study contributes to the ES and ED literature by capturing the symmetric and asymmetric effect of infrastructure on ES and ED. We employ a robust dynamically simulated autoregressive distributed lag (DYS-ARDL) dynamic method, which is an extended version of NARDL and ARDL. The major aim of this new DYS-ARDL dynamic approach was to abolish the issue in orthodox ARDL model approach while examining the long-run and short-run. The new dynamic DYS-ARDL model is accomplished in estimating, stimulating, and robotically plotting predictions of counterfactual alterations in one explanatory variable and its impact on the dependent variable while holding the remaining regressors constant. Furthermore, this new method of DYS-ARDL model can estimate, stimulate, and plot to forecast graphs of positive and negative variations in the variables robotically as well as their short and long-run associations. Interestingly, the results of this study witness the presence of long-run relationship between infrastructure and ES and ED in China. The present study shows that better infrastructure will be more beneficial for Chinese ED and ES.
Faheem Ur Rehman; Ejaz Ahmad; Muhammad Khan; József Popp; Judit Oláh. Does Trade Related Sectoral Infrastructure Make Chinese Exports More Sophisticated and Diversified? Sustainability 2021, 13, 5408 .
AMA StyleFaheem Ur Rehman, Ejaz Ahmad, Muhammad Khan, József Popp, Judit Oláh. Does Trade Related Sectoral Infrastructure Make Chinese Exports More Sophisticated and Diversified? Sustainability. 2021; 13 (10):5408.
Chicago/Turabian StyleFaheem Ur Rehman; Ejaz Ahmad; Muhammad Khan; József Popp; Judit Oláh. 2021. "Does Trade Related Sectoral Infrastructure Make Chinese Exports More Sophisticated and Diversified?" Sustainability 13, no. 10: 5408.
This study investigates the bidirectional causal relationship between institutional quality and aggregated and disaggregated (primary, secondary and services sector) FDI inflow in India by employing new simulated autoregressive distributed lag (SARDL) dynamic techniques, which is an extended version of NARDL and ARDL. The empirical results supports that institutional quality strongly attract aggregated and disaggregated FDI and reversely FDI enhance the quality of institutions. The nexus between FDI inflow and institutional quality is good news for India to enhance the institutional quality and catch-up on advanced economies. The empirical findings detect cointegration and bidirectional causal-relationship between aggregated FDI and institutional quality.
Faheem Ur Rehman; Kazi Sohag; Ejaz Ahmad. Symmetric and Asymmetric Nexus between Institutional Quality and Sectorial Foreign Direct Investment Inflow in India: A Fresh Insight Using Simulated Dynamic ARDL Approach. 2021, 1 .
AMA StyleFaheem Ur Rehman, Kazi Sohag, Ejaz Ahmad. Symmetric and Asymmetric Nexus between Institutional Quality and Sectorial Foreign Direct Investment Inflow in India: A Fresh Insight Using Simulated Dynamic ARDL Approach. . 2021; ():1.
Chicago/Turabian StyleFaheem Ur Rehman; Kazi Sohag; Ejaz Ahmad. 2021. "Symmetric and Asymmetric Nexus between Institutional Quality and Sectorial Foreign Direct Investment Inflow in India: A Fresh Insight Using Simulated Dynamic ARDL Approach." , no. : 1.
PurposeChina's outward foreign direct investment (OFDI) has risen remarkably over the past two decades. Does such increase affect the sophistication of Chinese exports, is a significant issue that has surprisingly remained unaddressed? The purpose of this study is to investigate the impact of Chinese OFDI on bilateral export sophistication of China and its OFDI receiving partner countries during 2003–2017 by applying Poisson pseudo-maximum likelihood approach based on gravity model.Design/methodology/approachThe analysis has been performed for total sample, region-wise grouped sample (Europe and Central Asia, Middle East and North Africa, Latin America and Caribbean, East Asia and Pacific, South Asia, North America and sub-Saharan Africa) and income-wise grouped sample (high income, upper middle income, lower middle income and lower income group sample).FindingsThe results confirmed the significant and positive effect of Chinese OFDI on bilateral export sophistication in total sample, regions-wise and income groups sample.Originality/valueThe study provides a helpful suggestion regarding policy towards achieving more sophistication in export and thus to achieve comparative advantage in trade.
Faheem Ur Rehman; Abul Ala Noman. China's outward foreign direct investment and bilateral export sophistication: a cross countries panel data analysis. China Finance Review International 2021, ahead-of-p, 1 .
AMA StyleFaheem Ur Rehman, Abul Ala Noman. China's outward foreign direct investment and bilateral export sophistication: a cross countries panel data analysis. China Finance Review International. 2021; ahead-of-p (ahead-of-p):1.
Chicago/Turabian StyleFaheem Ur Rehman; Abul Ala Noman. 2021. "China's outward foreign direct investment and bilateral export sophistication: a cross countries panel data analysis." China Finance Review International ahead-of-p, no. ahead-of-p: 1.
PurposeInfrastructure deficiency in Southeast Asian countries is ever growing and touched to a level where it harms the local economy as well as the international sector of the country. The gap between demand and supply for infrastructure is constantly on the upswing. The purpose of this study to investigate the effect of infrastructure on exports and foreign direct investment (FDI) inflow in selected Southeast Asian economies.Design/methodology/approachThis study employs the pooled mean group (PMG) technique to velaborate that how the infrastructure affects export and FDI in the short run and long run during 1990–2018. For cointegration, Pedroni and Kao tests are used. Dynamic ordinary least square (DOLS) and the fully modified least squares (FMOLSs) estimators are employed for robustness check.FindingsThe findings support that aggregate and sub-indices of infrastructure significantly promote the export and FDI inflow in the long run. Also infrastructure, export and FDI inflow are cointegrated in the long run. FMOLS and DOLS found the most robust results.Originality/valueInfrastructure development in determining trade and FDI has established a significant deal of attention in the modern era where a plethora of research studies encourage the opinion that better infrastructure attracts FDI and enhances export. However, this study uses a global infrastructure index, which comprises the sub-indices like transport, telecommunication, energy and financial sector, which gives us a clear picture regarding how Southeast Asia can catch up FDI and export benefits through infrastructure.
Faheem Ur Rehman; Abul Ala Noman. Does infrastructure promote exports and foreign direct investment in selected Southeast Asian economies? An application of global infrastructure index. Journal of Economic Studies 2020, ahead-of-p, 1 .
AMA StyleFaheem Ur Rehman, Abul Ala Noman. Does infrastructure promote exports and foreign direct investment in selected Southeast Asian economies? An application of global infrastructure index. Journal of Economic Studies. 2020; ahead-of-p (ahead-of-p):1.
Chicago/Turabian StyleFaheem Ur Rehman; Abul Ala Noman. 2020. "Does infrastructure promote exports and foreign direct investment in selected Southeast Asian economies? An application of global infrastructure index." Journal of Economic Studies ahead-of-p, no. ahead-of-p: 1.
This study investigates the short- and long-run impact of infrastructure on export and trade deficit in selected South Asian countries during 1990–2017 by using Pooled Mean Group (PMG) estimator and cointegration techniques like Pedroni and Kao test. The empirical results of PMG approach confirmed the existence of significant long-run impact of aggregate and sub-indices of infrastructure (i.e., transport, telecommunication, energy and financial sector) on export and trade deficit. The findings suggested that infrastructure positively promotes exports while negatively affecting trade deficit. The relationship between infrastructure and export is worthy bulletin for South Asian economies to encourage the quantity of exports and catch-up on established economies. The control variables of exchange rate, human capital, per capita GDP and institutional quality enhance exports and retard trade deficit significantly in the long run. Furthermore, the Pedroni and Kao test indicates strong evidence of cointegration in selected variables. Fully modified ordinary least square (FMOLS) and dynamic ordinary least square (DOLS) support robust and consistent results to the main model of this study. Furthermore, the study recommended that in long run aggregate and sub-indices of infrastructure promote exports and decrease trade deficit in selected South Asian economies.
Faheem Ur Rehman; Abul Ala Noman; Yibing Ding. Does infrastructure increase exports and reduce trade deficit? Evidence from selected South Asian countries using a new Global Infrastructure Index. Journal of Economic Structures 2020, 9, 1 -23.
AMA StyleFaheem Ur Rehman, Abul Ala Noman, Yibing Ding. Does infrastructure increase exports and reduce trade deficit? Evidence from selected South Asian countries using a new Global Infrastructure Index. Journal of Economic Structures. 2020; 9 (1):1-23.
Chicago/Turabian StyleFaheem Ur Rehman; Abul Ala Noman; Yibing Ding. 2020. "Does infrastructure increase exports and reduce trade deficit? Evidence from selected South Asian countries using a new Global Infrastructure Index." Journal of Economic Structures 9, no. 1: 1-23.
In modeling the impact of sovereign credit rating (CR) on financial markets, a considerable amount of the literature to date has been devoted to examining the short-term impact of CR on financial markets via an event-study methodology. The argument has been established that financial markets are sensitive to CR announcements, and market reactions to such announcements (both upgrading and degrading) are not the same. Using the framework of an autoregressive distributed lag setting, the present study attempted to empirically test the linear and non-linear impacts of CR on financial market development (FMD) in the European region. Nonlinear specification is capable to capture asymmetries (upgrades and downgrades) in the estimation process, which have not been considered to date in financial market literature. Overall findings identified long-term asymmetries, while there was little evidence supporting the existence of short-term asymmetries. Thus, the present study has extended the financial market literature on the subject of the asymmetrical impact of a sovereign CR on European FMD and provides useful input for policy formation taking into account these nonlinearities. Policies solely based upon linear models may be misleading and detrimental.
Chunling Li; Khansa Pervaiz; Muhammad Asif Khan; Faheem Ur Rehman; Judit Oláh. On the Asymmetries of Sovereign Credit Rating Announcements and Financial Market Development in the European Region. Sustainability 2019, 11, 6636 .
AMA StyleChunling Li, Khansa Pervaiz, Muhammad Asif Khan, Faheem Ur Rehman, Judit Oláh. On the Asymmetries of Sovereign Credit Rating Announcements and Financial Market Development in the European Region. Sustainability. 2019; 11 (23):6636.
Chicago/Turabian StyleChunling Li; Khansa Pervaiz; Muhammad Asif Khan; Faheem Ur Rehman; Judit Oláh. 2019. "On the Asymmetries of Sovereign Credit Rating Announcements and Financial Market Development in the European Region." Sustainability 11, no. 23: 6636.
The main objective of this study is to analyze the impact of Pakistan trade relation with China, especially in the perspective of "China-Pakistan Economic Corridor" (CPEC), on the inclusive Growth in Pakistan. This study contains two phases. Phase-I elaborates the impact of Pakistan trade with China and its inclusive growth without the effect of CPEC during 1985 – 2017 by applying ARDL frame-work. The results of the study confirmed that the influence of Pakistan-trade with China and its impact on the inclusive growth of Pakistan is Positive and Significant. Granger Causality test also give robust evidence that the relationship between Pakistan trade with China enhances inclusive growth of Pakistan. Correspondingly, Phase-II, examined the impact of CPEC and Pakistan-trade with China on the inclusive growth of Pakistan during 1990 – 2017 by using Ordinary Least Square (OLS). The results argue that the Impact of CPEC and Trade volume of Pakistan with China encourages inclusive growth of Pakistan. Beside the main variables, the control variable like, (foreign direct investment, government expenditure, financial development, trade openness and inflation) also positive and significant effect on inclusive growth but in some cases the impact is insignificant. Keywords: Trade; Inclusive Growth; CPEC; ARDL; Pakistan. DOI: 10.7176/DCS/9-3-05 Publication date:March 31st 2019
Muhammad Asif; Faheem Ur Rehman; Li Zheng; Syed Hasanat Shah. Does Trade with China Can Make Growth in Pakistan More Inclusive? Pre and Post Empirical Impact of China-Pakistan Economic Corridor. Developing Country Studies 2019, 9, 57-67 .
AMA StyleMuhammad Asif, Faheem Ur Rehman, Li Zheng, Syed Hasanat Shah. Does Trade with China Can Make Growth in Pakistan More Inclusive? Pre and Post Empirical Impact of China-Pakistan Economic Corridor. Developing Country Studies. 2019; 9 (3):57-67.
Chicago/Turabian StyleMuhammad Asif; Faheem Ur Rehman; Li Zheng; Syed Hasanat Shah. 2019. "Does Trade with China Can Make Growth in Pakistan More Inclusive? Pre and Post Empirical Impact of China-Pakistan Economic Corridor." Developing Country Studies 9, no. 3: 57-67.