Search Results (3)

This study investigates the dynamic relationship between interest and noninterest income at Azer Turk Bank using quarterly data from 2016Q1–2024Q3. Unit root tests including Augmented Dickey–Fuller (ADF), Kwiatkowski–Phillips–Schmidt–Shin (KPSS), and Fourier–KPSS indicate that both variables are non-stationary in levels but become stationary after first differencing. The Hylleberg–Engle–Granger–Yoo (HEGY) test further shows that both series contain a unit root at the non-seasonal (0) frequency, while no unit roots are detected at the seasonal frequencies (π/2 and 3π/2). Johansen cointegration and the Fourier Autoregressive Distributed Lag (Fourier–ADL) framework confirm the existence of a stable long-run equilibrium. As a key methodological contribution, the study derives explicit Fourier-based Vector Error Correction Model (VECM) equations, enabling the modeling of cyclical deviations around nonlinear trends. Fourier Toda–Yamamoto and Breitung–Candelon frequency-domain causality tests reveal asymmetry: interest income consistently drives noninterest income in the short and medium run, whereas the reverse effect is weak. The results also confirm mean reversion, with deviations from equilibrium corrected within 5.9; 2.5 quarters. Overall, the findings highlight the limited diversification potential of noninterest income and the decisive role of lending in bank revenues, offering both methodological advances and practical guidance for macroprudential policy. Full article

The environmental degradation in the Middle East and North Africa (MENA) region leads to significant challenges regarding economic sustainability and the attainment of sustainable development goals (SDGs). The extensive use of fossil fuels in the region, as well as rapid urbanization and economic growth, has led to significant carbon emissions, together with unprecedented ecological footprints compromising environmental sustainability. The study aims to elucidate the influence exerted by technological innovation, trade openness, and natural resources on environmental sustainability in Turkey and Egypt for the period 1990–2022. In assessing the empirical relations, the study employed the Fourier function incorporate estimation techniques, that is, Fourier ADF for unit root test, Fourier ARDL, and Fourier NARDL for long-run and short-run elasticities of technological innovation (TI), trade openness (TO,) and natural resources rent (NRR) on load capacity factor (LCF) and inverted LCF (ILCF); finally, the directional causality evaluate through Fourier TY causality test. The results revealed that both Turkey and Egypt have severe environmental problems due to their high carbon emissions and ecological footprints. Technological change and international trade separately negatively affect environmental sustainability; however, these negative impacts have mixed character. On the one hand, technology can improve efficiency and reduce ecological footprints by obviating the use of high-impact processes or allowing cleaner production systems. In the same vein, trade openness helps transfer green technologies more quickly, but it can also lead to unsustainable resource extraction and pollution. The findings of the paper propose that in order to move forward, Turkey and Egypt need strategic policy shifts to ensure environmental sustainability, including transitioning towards renewable energy from fossil fuels while bolstering their capacity for energy efficiency. Policymakers must balance economic development with environmental conservation to reduce the harmful effects of climate degradation and help safeguard continued economic survival in the face of increasing climatic instability. This research helps to inform policy and investment decisions about how the SDGs can be achieved and how they are relevant for sustainable development in the MENA region. Full article

The increased consumption of fossil fuels worldwide has resulted in unprecedented historic environmental degradation and global warming. According to the United Nations, this is both the defining crisis of our time and a race the world could win given the right policy attention. Researchers seek to find critical pathways to provide policy recommendations for reducing environmental degradation. This paper aims to investigate the effect of energy productivity on environmental degradation in Germany while controlling for economic growth, primary energy consumption, and globalization for the period between 1990Q1 and 2019Q4. The outcomes of the Fourier ARDL long-run estimates indicate that (i) both energy productivity and globalization have a negative effect on carbon emissions in Germany, and (ii) both economic growth and primary energy consumption have positive effects on carbon dioxide emissions. These outcomes provide significant policy insights to EU members with respect to reducing their reliance on Russian energy imports amidst the rising energy bills and ongoing geopolitical war with Ukraine while increasing investments to realize their energy turnaround policy objectives. Full article