Tehreem Fatima, Muhammad Saeed Meo, Festus Victor Bekun and Tella Oluwatoba Ibrahim
According to the crusade of the United Nations sustainable development goals (SDGs-6, 7,8,12 and 13) that addressed pertinent issues around, clean access to water, access to…
Abstract
Purpose
According to the crusade of the United Nations sustainable development goals (SDGs-6, 7,8,12 and 13) that addressed pertinent issues around, clean access to water, access to energy, responsible consumption and climate change mitigation alongside, respectively, Paris Kyoto Protocol agreement of mitigation of climate changes issues of vision 2030.
Design/methodology/approach
This purpose of this study aimed to assess the Environmental Kuznets Curve hypothesis following the ecological footprint perspective with a data set covering the period 1995–2018. It is well-established that anthropogenic human activities are the root cause of environmental deterioration. To this end, the current study is fitted in a multivariate framework to ameliorate for omitted variable bias for the data set from 1995–2018 on a quarterly frequency using autoregressive distributive lag methodology. Subsequently, the stationarity status of the study underlines series were examined with a conventional unit root test and the Pesaran’s bounds test for cointegration analysis.
Findings
Empirical evidence from the bounds test to cointegration traces the co-integration relationship between ecological footprint, conventional energy use, foreign direct investment, international tourism arrival and water resources over the sampled period. The study, in the long run, affirms the N-shaped relationship between ecological footprint and foreign direct investment in Vietnam. Additionally, the present study validates the hypothesis of energy consumption-induced pollution emissions. The relationship between international tourism arrival and quality of the environment is statistically positive in both the short-run and long-run, as 1% in international tourism arrival worsens the quality of the environment by 0.45% and 0.4% in the short-run and long-run, respectively. Interestingly, water resource's major environmental issues that have plagued the Vietnam economy are inversely related to ecological footprint. Based on findings, Vietnamese policymakers may need to consider drafting appropriate environmental policies to tackle global warming while concurrently boosting economic development.
Originality/value
The present study focuses on Vietnam on the determinant of environmental quality measured by a broader indicator (ecological footprint). It is well-established that anthropogenic human activities are the root cause of environmental deterioration. The present study claims to distinct from previous literature in two-folds, namely, in terms of scope. Vietnam holds a very interesting energy mix and environmental dynamics, which has been ignored in the literature. Second, we argue to be the first based on our survey to explore the theme by incorporation of water resources and foreign direct investment intensification in the conventional pollution determinant model. This is in a bid to highlights the policy blueprint for the country (Vietnam), which is currently plagued with high pollution issues and the region at large.
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Bisharat Hussain Chang, Muhammad Saeed Meo, Qasim Raza Syed and Zahida Abro
The purpose of this paper is of twofold: first, to empirically examine the short-run and long-run impact of macroeconomic variables such as industrial production, foreign direct…
Abstract
Purpose
The purpose of this paper is of twofold: first, to empirically examine the short-run and long-run impact of macroeconomic variables such as industrial production, foreign direct investment (FDI), trade balance (TB), exchange rate, interest rate (IR) and consumer price index (CPI) on stock prices (SP) of KSE-100 index; and second, to examine whether this relationship changes as a result of the financial crisis.
Design/methodology/approach
This study uses an autoregressive distributed lag model by using the full sample period data from 1997Q3 to 2018Q2 and the post-crisis period data from 2008Q3 to 2018Q2. Moreover, it uses variance decomposition analysis to examine the importance of each variable in explaining SP.
Findings
The findings of the full sample period indicate that in the long run, TB, exchange rate and IR negatively affect SP whereas CPI and industrial production positively affect SP. However, the post-crisis period data indicate that only CPI positively affects the SP in the long run. Finally, variance decomposition analysis indicates 30 percent variance in SP is explained by its own shock.
Practical implications
The study findings suggest that macroeconomic variables have a significant role and can be considered important for taking investment and/or policy decisions. Especially, Governments and other regulators may need to take measures to increase the TB since it can help to increase the performance of the Pakistani stock market. Furthermore, investors may consider that findings change when the financial crisis has been taken into consideration.
Originality/value
This study uses two additional variables, namely FDI and TB by using the robust technique in the context of emerging countries like Pakistan. Furthermore, it takes into account the impact of the financial crisis on the underlying variables.
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Sajid Ali, Zulkornain Yusop, Shivee Ranjanee Kaliappan, Lee Chin and Muhammad Saeed Meo
This study examines the impact of trade openness, human capital, public expenditure and institutional performance on unemployment in various income groups of Organization of…
Abstract
Purpose
This study examines the impact of trade openness, human capital, public expenditure and institutional performance on unemployment in various income groups of Organization of Islamic Cooperation (OIC) countries.
Design/methodology/approach
Traditional panel data methodologies neglect the issue of cross-sectional dependence and provide ambiguous outcomes. A novel approach, “dynamic common correlated effects (DCCE)”, is utilized in this study to tackle with aforementioned issue. Pooled mean group (PMG) estimation is also applied to verify the robustness of the findings.
Findings
The long-run estimates show that trade openness has a significant and negative relationship with the unemployment rate in overall and lower-income OIC economies and a positive correlation with unemployment in higher-income OIC countries. Public expenditure is negatively and significantly correlated with unemployment in higher-income and overall OIC economies. Moreover, human capital reduces unemployment in higher-income and overall OIC countries while increases unemployment in lower-income OIC economies.
Practical implications
The research tends to endorse the argument for continuous trade openness policy along with efficient use of public expenditure and improved institutional performance to reduce unemployment in OIC countries.
Originality/value
The DCCE approach in this research considers heterogeneity and cross-sectional dependence between cross-sectional units and thus gives robust outcomes.
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Muhammad Saeed Meo, Kiran Jameel, Mohammad Ashraful Ferdous Chowdhury and Sajid Ali
The purpose of the research is to analyze the impact of world uncertainty and pandemic uncertainty on Islamic financial markets. For representing Islamic financial markets four…
Abstract
Purpose
The purpose of the research is to analyze the impact of world uncertainty and pandemic uncertainty on Islamic financial markets. For representing Islamic financial markets four different Islamic indices (DJ Islamic index, DJ Islamic Asia–Pacific index, DJ Islamic-Europe index and DJ Islamic-US) are taken.
Design/methodology/approach
The study employs quantile-on-quantile regression approach to see the overall dependence structure of variables based on quarterly data ranging from 1996Q1 to 2020Q4. This technique considers how quantiles of world uncertainty and pandemic uncertainty asymmetrically affect the quantiles of Islamic stocks by giving an appropriate framework to apprehend the overall dependence structure.
Findings
The findings of the study confirm a strong negative impact of world uncertainty and world pandemic uncertainty on regional Islamic stock indices but the strength of the relationship varies according to economic conditions and across the regions. However, the world pandemic effect remains the same and does not change. Conversely, pandemic uncertainty has a larger effect on Islamic indices as compared to world uncertainty.
Practical implications
Our findings have significant implications for investors and policymakers to take proper steps before any uncertainty arise. A coalition of the central bank, government officials and investment bank regulators would be needed to tackle this challenge of uncertainty.
Originality/value
To the best of the authors' knowledge, none of the current works has considered the asymmetric impact of world and pandemic uncertainties on Islamic stock markets at both the bottom and upper quantiles of the distribution of data.
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Xiaoying Liu, Qamar Ali, Muhammad Rizwan Yaseen, Samuel Asumadu Sarkodie, Muhammad Sohail Amjad Makhdum and Muhammad Tariq Iqbal Khan
The Sustainable Development Goal (SDG) 16 outlines sustainability as associated with peace, good governance and justice. The perception of international tourists about security…
Abstract
Purpose
The Sustainable Development Goal (SDG) 16 outlines sustainability as associated with peace, good governance and justice. The perception of international tourists about security measures and risks is a key factor affecting destination choices, tourist flow and overall satisfaction. Thus, we investigate the impact of armed forces personnel, prices, economic stability, financial development and infrastructure on tourism.
Design/methodology/approach
This research used data from 130 countries from 1995 to 2019, which were divided into four income groups. This study employs a two-step generalized method of moments (GMM) technique and a novel tourism index comprising five relevant indicators of tourism.
Findings
A 1% increase in armed forces personnel expands tourism in all income groups – 0.369% High Income Countries (HICs), 0.348% Upper Middle Income Countries (UMICs), 0.247% Lower Middle Income Countries (LMICs) and 0.139% Low Income Countries (LICs). The size of the tourism-safety coefficient decreases from high to low-income groups. The impact of inflation is significantly negative in all panels, excluding LICs. The reduction in tourism was 0.033% in HICs, 0.049% in UMICs and 0.029% in LMICs for a 1% increase in prices. The increase in the global tourism index is more in LICs (0.055%), followed by LMICs (0.024%), UMICs (0.009%) and HICs (0.004%) for a 1% expansion in the gross domestic product (GDP)/capita growth. However, the magnitude of the growth-led tourism impact is greater in developing countries. A positive impact of foreign direct investment (FDI) inflow was found in all panels like 0.016% in HICs, 0.050% in UMICs and 0.119% in LMICs for a 1% increase in FDI inflow. The rise in the global tourism index is 0.097% (HICs), 0.124% (UMICs) and 0.310% (LMICs) for a 1% rise in the financial development index. The increase in the global tourism index is 0.487% (HICs), 0.420% (UMICs) and 0.136% (LICs) for a 1% rise in the infrastructure index.
Research limitations/implications
Empirical analysis infers important policy implications such as (a) establishment of a peaceful environment via recruitment of security personnel, use of safe city cameras, modern technology and law enforcement; (b) provision of basic facilities to tourists like sanitation, drinking water, electricity, accommodation, quality food, fuel and communication network and (c) price stability through different tools of monetary and fiscal policy.
Originality/value
First, it explains the effect of security personnel on a comprehensive index of tourism instead of a single variable of tourism. Second, it captures the importance of economic stability (i.e., economic growth, financial development and FDI inflow) in the tourism–peace nexus.
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The restrictive measures related to the COVID-19 pandemic put a halt to everything across the world. The global crisis hit every sphere of life. The mobility restrictive nature of…
Abstract
The restrictive measures related to the COVID-19 pandemic put a halt to everything across the world. The global crisis hit every sphere of life. The mobility restrictive nature of the pandemic was a major blow to the travel, tourism and hospitality industry. For a country like Pakistan, with an unstable economy and struggling tourism, the pandemic served as ground zero. This chapter critically examines tourism dimensions in Pakistan and how it sustained the impact of various crises. It pays attention to the concepts of vulnerability, social and community resilience, and adaptive capacity to provide a theoretical understanding of the revival of tourism in Pakistan. It also considers the impact of COVID-led measures on the tourism industry and corresponding initiatives of the government. The chapter concludes by arguing that Pakistan should carefully monitor and assess the current debates on tourism policies and practices. The chapter suggests that the national tourism strategy should incorporate a mechanism that can address tourism in crises in addition to addressing the environmental, socio-cultural and economic impact of tourism.
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Khaqan Zeb, Yousaf Ali and Muhammad Waseem Khan
Cement industry for both developed and developing countries is important from the economic point of view. It is playing a vital role in economic development of a developing…
Abstract
Purpose
Cement industry for both developed and developing countries is important from the economic point of view. It is playing a vital role in economic development of a developing country like Pakistan. However, these industries are posing threat to the environment, human health and plant species. The purpose of this paper is to identify the most critical factors of cement industry that have a negative impact on the environment, human health and plant species in the context of Pakistan.
Design/methodology/approach
The factors are categorized into air pollution, noise pollution, soil pollution, human health and plant species. These factors are categorized on the basis of previous literature and environmental safety reports. Air pollution is caused by iron and sulphur while noise pollution is mainly caused by crusher room and rotatory kiln end. The soil is being polluted by zinc and lead while human health and plant species are being damaged by sulphur dioxide and nitrogen dioxide. For the analysis purpose, a multi-criteria decision-making (MCDM) technique, i.e., decision-making trial and evaluation laboratory (DEMATEL) is used.
Findings
The result shows that the major cause of air pollution is “sulphur” while “crusher room and rotatory kiln end” are responsible for noise pollution. On the other hand, “mercury” is responsible for causing soil pollution while human health and plant species are influenced by the toxic effect of “nitrogen dioxide.”
Research limitations/implications
The results obtained are specific to cement manufacturing industry of Pakistan and cannot be generalized for any other manufacturing sector.
Practical implications
The proposed methodology shows the most critical factors toward which concertation should be given for mitigating their impact. This study will help the government and the cement industry to focus on all those elements that are the most responsible for causing different types of pollution.
Originality/value
No such work is reported in previous research that proposes a framework using DEMATEL technique for analysis of critical factors of cement industries that have a dangerous impact on the environment and human health, especially in a developing country, like Pakistan.
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Arash Arianpoor, Imad Taher Lamloom, Bita Moghaddampoor, Hameed Mohsin Khayoon and Ali Shakir Zaidan
The present study investigates the impact of managerial psychological characteristics on the supply chain management efficiency (SCME) of companies listed in Tehran Stock Exchange.
Abstract
Purpose
The present study investigates the impact of managerial psychological characteristics on the supply chain management efficiency (SCME) of companies listed in Tehran Stock Exchange.
Design/methodology/approach
To this aim, information about 215 companies was analyzed during 2014–2021. The sales per inventory ratio was used to calculate SCME. In the present study, the focus is on characteristics such as managerial entrenchment, managerial myopia, managerial overconfidence (MOC) and managerial narcissism, all considered as managerial attributes.
Findings
The present findings showed that managerial myopia/managerial entrenchment (MOC/managerial narcissism) have a negative (positive) effect on SCME. Hypothesis testing based on robustness checks confirmed these results. Moreover, the findings are presented separately for companies with high business strategy (first quarter) and low business strategy (third quarter). The results show that at low levels of differentiation strategy, managerial entrenchment does not have a significant effect on SCME while other managerial attributes have a significant effect on both high and low business strategy.
Originality/value
The present study contributes to the identification of managerial psychological characteristics influencing SCME to advance future studies and support practical efforts. The present findings can prove the significance of this research and fill the existing gap in research.
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Rakesh Kumar Verma and Rohit Bansal
This paper aims to identify various macroeconomic variables that affect the stock market performance of developed and emerging economies. It also investigates the effect of these…
Abstract
Purpose
This paper aims to identify various macroeconomic variables that affect the stock market performance of developed and emerging economies. It also investigates the effect of these factors on the stock markets of both economies. The impact of these variables on broad market indices and sectoral indices is investigated and compared too.
Design/methodology/approach
The publications for the study were retrieved from databases such as Emerald Insight, EBSCO, ScienceDirect and JSTOR using the keywords “Macroeconomic variables” and “Stock market” or “Stock market performance.” The result demonstrated a growing corpus of scholarly work in the domain of stock market. The study was carried out separately for each macroeconomic indicator. Given a large number of articles under consideration, the authors began by reading the titles and abstracts of all publications to identify those that were relevant. The papers are evaluated in Excel and the articles for review range from 1972 to 2021.
Findings
The authors found that gross domestic product (GDP), FDI (Foreign Direct Investment) and FII (Foreign Institutional Investment) have a positive effect on both emerging and developed economies’ stock market while gold price has a negative effect. Interest rates had a negative impact on both economies except for a few developing countries. The relationship with oil prices was positive for oil exporting countries while negative for oil importing countries. Inflation, money supply and GDP are the macroeconomic variables that have the same effect on sectoral indices as they do on broad market indices. The impact was sector-specific for the remaining variables.
Research limitations/implications
This paper gives an overview of relation and effect covering variety of macroeconomic variables and stock market indices. Still, there is a scope for further research to analyze the effect on thematic, strategy and sectoral indices. A longer time horizon with new variables, such as bank deposit growth rate, nonperforming assets of banks, consumer confidence index and investor sentiment, can be studied using high-frequency data. This research may help stakeholders adopt and manage their policies during a crisis or economic slump.
Practical implications
This study will assist investors, researchers and educators in the fields of economics and finance in understanding how macroeconomic factors affect the stock market. Furthermore, this study can guide in portfolio diversification strategy across multiple sectors by examining the impact of macroeconomic factors specific to sectoral indices. This paper provides insight into society and researchers since it integrates a number of macroeconomic variables and their interaction with the stock market. It may also help pension funds and mutual fund firms to hedge their funds and allocate equity portfolios.
Originality/value
With respect to India, this study looked at new macroeconomic variables and sectors. It contrasted the impact of these variables in developed and developing economies. The effect of broad and sectoral stock indexes was also investigated and compared. The authors examined how these variables responded during crisis and economic downturns by using articles from a longer time frame. This research also looked into how changing the frequency of data for the variables altered stock performance. This paper emphasized the need for more research into thematic, strategy and broad market indices, such as small-cap and mid-cap indices.
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Gülin Vardar, Berna Aydoğan and Beyza Gürel
Considering the evolving importance of green finance, this study uses climate-related development mitigation finance as a proxy of green finance and investigates the impact of…
Abstract
Purpose
Considering the evolving importance of green finance, this study uses climate-related development mitigation finance as a proxy of green finance and investigates the impact of green finance on ecological footprint as an indicator of environmental quality along with the influence of economic growth, renewable energy, greenhouse gas emissions, trade openness and urbanization across 47 developing countries over the period 2000–2018.
Design/methodology/approach
After finding the presence of cross-sectional dependency among variables, the second-generation panel unit root test was employed to detect the order of integration among the variables. Since all the variables were found to be stationary, Westerlund cointegration technique was employed to detect the long-run relationship among the variables. Then, the long-run elasticity among the dependent and independent variables was tested using fully modified ordinary least squares (FMOLS), dynamic ordinary least squares (DOLS) and pooled mean group–autoregressive distributed lag (PMG–ARDL) approaches.
Findings
The empirical findings suggest the presence of long-run relationship among all the variables, namely, ecological footprint, green finance, economic growth, renewable energy consumption, greenhouse gas emissions, trade openness and urbanization for the selected developing countries in the sample. Furthermore, economic growth, greenhouse gas emissions, trade openness and urbanization, all have a positive and significant impact on the ecological footprint, whereas renewable energy consumption and green finance have a significant and negative impact on the ecological footprint, which supports the view that environmental quality is improved with the greater use of renewable energy technologies and allocation of greater amounts of more green finance.
Originality/value
The empirical results of this study offer policymakers and regulators some implications for environmental policy for protecting the countries from ecological issues.