Search Results (3)

While technological innovation and financial development are broadly credited as important drivers of economic growth of developed nations, their impact on inequality (especially in emerging economies) remains understudied. Thus, the objective of this study is to investigate the impact of technological innovation and financial development on income inequality in BRICS (Brazil, Russia, India, China and South Africa) countries using panel dynamic ordinary least squares (PDOLS) and panel fully modified ordinary least squares (PFMOLS) with annual data sourced from the Standardized World Income Inequality Database, International Monetary Fund (IMF) and World Bank (1990–2017). The results suggest that technological innovation increases income inequality in the BRICS nations, while financial development has an income reducing effect on inequality. Our results are robust, using alternative estimation with various sub-indicators of financial development (such as financial markets and financial institution), including other measures proxied by access to credit provided by commercial banks. The study’s results have important implications for policy and practice in the BRICS countries. By providing a nuanced understanding of the relationship between technological innovation, financial development and inequality, the study will inform the design and implementation of policies aimed at reducing inequality and promoting inclusive growth in these emerging economies. Full article

Purpose: This study examines the impact of macroeconomic factors on GCC banks’ stability. As GCC countries still rely on oil export revenues to cover government expenses and perform an undiversified economy, hence, increased awareness of the financial diversifications in the GCC financial sectors is needed to contribute alongside oil sector revenues and then improve the non-oil sectors’ investments in order to eliminate the oil and macro-financial linkage that causes any changes in the oil price to impact the whole macroeconomic and financial system of the country. In this context, this research selected the most important macroeconomic factors such as GDP growth, inflation rate, exchange rate, global financial crisis period (2008/2009), oil price fluctuation, and political instability within the period from 2005 to 2020, which covers many economic and political events. Design/methodology/approach: We used panel cointegration analysis, starting with a panel unit root test and including PFMOLS and PDOLS estimations. Additionally, FGLS estimation was used due to the existence of heteroskedasticity and auto-correlation in the sample. Findings: The findings suggest that there is an adverse relationship between the inflation rate, global financial crisis (2008/2009) and oil price changes, and the financial stability of GCC Islamic and conventional banks. However, the Islamic bank is less adversely affected by a financial crisis, oil price changes, inflation rate and political instability. Originality/value: This proposed model provided better knowledge for regulators and policymakers about the external impacts on GCC banks’ stability, to commit an appropriate economic policy to help in reforming the economic and financial imbalances. Full article

Green investment and technology innovations are generally considered as an effective factor to mitigate CO2 emissions as these enhance cleaner production and energy efficacy. Thus, this study investigated the influence of green investment, technology innovations, and economic growth on CO2 emissions in selected Asian countries for the period 2001 to 2019. The Cross-Section dependency (CSD) signified the cross-section dependence in the panel countries, whereas CIPS and CADF testing affirmed the stationarity of all variables at the first difference. Consequently, the Westerlund cointegration method recognized a long-term association among variables. The outcomes of Panel Fully Modified OLS and Panel Dynamic OLS results indicated that green investment and technology innovations are helpful in mitigating CO2 emissions in selected Asian countries. In addition, the Environmental Kuznets Curve (EKC) postulate is validated for the given time period and indicated inverted U-shaped linkages between the economic growth and CO2 emission. The outcomes of the remaining variables, including population growth, energy consumption, FDI inflow, and trade, are estimated to have an augmenting influence on CO2 emission. Our results regarding the FDI–CO2 emissions nexus support the presence of the pollution-haven hypothesis. Moreover, the estimated results from PFMOLS and PDOLS are validated by Granger Causality, and AMG and CCEMG tests. The study suggests the adoption of renewable sources as energy input and the promotion of innovations for energy efficiencies to reduce CO2 emissions in Asian economies. Full article