Jamshid, Muhammed Ashiq Villanthenkodath and Nirmala Velan
For mitigating climate change, renewable energy consumption is recognized as one of the policy measures worldwide. However, there is a dearth of empirical studies focusing on…
Abstract
Purpose
For mitigating climate change, renewable energy consumption is recognized as one of the policy measures worldwide. However, there is a dearth of empirical studies focusing on education as one of the determinants of renewable energy consumption in the existing literature. Thus, this study aims to explore the impact of education, economic growth and foreign direct investment, financial development, CO2 emissions and urbanization on renewable energy consumption.
Design/methodology/approach
This study considers a balanced panel of selected South Asian Association of Regional Cooperation (SAARC) countries, namely, India, Pakistan, Sri Lanka, Nepal and Bangladesh, during the period 1995–2015. The study uses sophisticated second-generation panel data models for empirical analysis.
Findings
The result reveals that education and economic growth significantly enhance renewable energy consumption, whereas foreign direct investment, financial development, CO2 emissions and urbanization reduce it. Further, unidirectional causality from education, economic growth and urbanization to renewable energy consumption was observed, whereas a bidirectional causality was found between renewable energy consumption and financial development.
Practical implications
The emanated finding of this study is supposed to be helpful for the environmentalists, economists, banking sector and the practitioners in urban development can take insights from the study while framing the energy policy.
Originality/value
This is the first study that examines the role of education on renewable energy consumption in heterogeneous panel data settings for the selected SAARC countries.
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Manzoor Hassan Malik and Nirmala Velan
The purpose of this paper is to investigate both long-run and short-run dynamics among the software and services export, investment in information technology (IT) and GDP in India…
Abstract
Purpose
The purpose of this paper is to investigate both long-run and short-run dynamics among the software and services export, investment in information technology (IT) and GDP in India and to investigate the direction of the relationship among the given three macro-economic variables.
Design/methodology/approach
The time series data have been taken to investigate the long-run relationship exists among the variables. Annual data were collected from the NASSCOM Annual Reports, Planning Commission of India and Reserve Bank of India during the period 1980–2016. Cointegration and vector error correction model have been used for analyzing the causal relationship among investment in IT, software exports and GDP in India.
Findings
Cointegration results confirm that software and services export, investment in IT and GDP are cointegrated, implying that there exists the long-run equilibrium relationship among the given three macro-economic variables. Similarly, vector error correction mechanism Granger causality results hold that there is uni-directional long-run causality running from software and services export and investment in IT to GDP, implying that software and services export is an important determinant of economic growth in India.
Research limitations/implications
The limitations of the paper are generalization of the results and proxy variable for IT investments.
Practical implications
The paper has implications for the expansion of market concentration, diversification of software and service exports, and investments in R&D for increasing competitiveness of the industry in the global market.
Originality/value
This paper focuses on originality in the analysis of the relationship among the given variables software exports, investment in the IT sector and GDP in India. All the work has been done in original by the authors and the work used have been acknowledged properly.
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Manzoor Hassan Malik and Nirmala Velan
The aims of the paper are to investigate IT software and service export function for India. First, cointegration tests have been used to investigate the long-run equilibrium…
Abstract
Purpose
The aims of the paper are to investigate IT software and service export function for India. First, cointegration tests have been used to investigate the long-run equilibrium relationship of the given variables. Second, long-run coefficients and associated error correction mechanism are estimated.
Design/methodology/approach
Annual time series data on IT software and service exports, human capital, exchange rate, investment in IT, external demand and openness index have been used for the present study during the period 1980–2017. The data are collected from the National Association of Software and Service Companies (NASSCOM), Planning Commission of India, University Grants Commission (UGC) of India, real effective exchange rate (REER) database and World Bank development indicators. Auto regressive distributed lag (ARDL) model is used to analyze both short-run and long-run dynamic behaviour of economic variables with appropriate asymptotic inferences.
Findings
Results of the analysis show the stable long-run equilibrium relationship among the given variables. It is found that external demand, exchange rate, human capital and openness index have a substantial long-run impact on the IT software and service exports. We also found that the coefficient of error correction term is negative and significant at 1% of the level of significance, which confirms the existence of stable long-run relationship which means adjustment will take place when there is a short-run deviation to its long-run equilibrium after a shock.
Research limitations/implications
There may be other determinants of software and service exports apart from those considered by the present study. Due to the non-availability of data, the study considers only important determinants that determine the software and service exports in India. The IT exports are an emerging and dynamic field of economic activity and the rate of change is so rapid that the relevance of individual factors may change over time. The study period is also limited to available data.
Practical implications
The paper has implications for achieving sustainability in IT software and service exports growth. It is recommended that policies directed at improving the performance of IT software and service exports should largely consider the long-run behaviour of these variables.
Originality/value
This paper focuses on originality in the analysis of the relationship among the given variables including IT software and service exports, human capital, exchange rate, investment in IT, external demand and openness index in India. All the work has been done in original by the authors, and the work used has been acknowledged properly.
Details
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Manzoor Hassan Malik and Nirmala Velan
The purpose of this paper is to present the growth trends in IT industry after the period of globalization in 1990s and to investigate the short-run and long-run dynamics between…
Abstract
Purpose
The purpose of this paper is to present the growth trends in IT industry after the period of globalization in 1990s and to investigate the short-run and long-run dynamics between IT software and service exports, globalization and economic growth in India.
Design/methodology/approach
Annual time series data on IT exports, net national product and openness index have been collected from National Association of Software and Service Companies, the Reserve Bank of India database on Indian economy and the World Bank for the present study. The methodology adopted for studying the first objective are growth trend models, descriptive statistics and graphs prepared on the basis of data from the IT sector. Growth trends in key performance variables, such as total output, export, domestic output and employment have been analyzed. In the case of second objective, vector auto regression model has been used based on variance decomposition and impulse response function to capture the short-run and long-run dynamics between IT exports, globalization and economic growth in India.
Findings
Results of the growth trend model show the relative growth performance of software services receipts shows its strong advancement compared to the other sub-components of current account of balance of payments of India. It is found that economic growth responds positively to the shocks in IT exports and openness of economy. Further, IT software and service exports and openness index contribute to economic growth more in the long-run rather than in the short run.
Research limitations/implications
The IT software and service exports is dynamic field of economic activity amid heavy dependence on both domestic and external economic and political environment; hence, the rate of change is so rapid, and the relevance of factors may change over time.
Practical implications
The paper has implications for achieving sustainability in IT software and service exports growth. It is recommended that economic growth can be enhanced by implementing policies that not only improve the efficiency of the sector but also focus on optimization of the potential of the Indian IT industry.
Originality/value
This paper focuses on originality in delineating the growth trends and analysis of capturing the short-run and long-run dynamics between IT exports, globalization and economic growth in India.
Details
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Manzoor Hassan Malik and Nirmala Velan
The purpose of this paper is to present an overview of trends of Indian information technology and business processing management (IT-BPM) sector and to analyse the determinants…
Abstract
Purpose
The purpose of this paper is to present an overview of trends of Indian information technology and business processing management (IT-BPM) sector and to analyse the determinants of IT-BPM sector during the period 1991-2014.
Design/methodology/approach
The study is based on annual data collected from National Association of Software and Service Companies and Department of Electronic and Information Technology for the period 1991 to 2014. The methodology adopted for studying the objectives are simple averages, percentages, ratios, growth rates, graphs prepared on the basis of data from the IT-BPM sector and regression analysis. Trends and patterns in key variables, such as total revenue, domestic revenue, export revenue, employment and exports of the IT-BPM sector have been examined. Factors influencing IT-BPM export growth have been analysed using ordinary least square multiple regression model, with growth rates of gross domestic product (GDP), labour productivity, exchange rate and previous year’s export, as the explanatory variables.
Findings
The export revenue from IT-BPM sector increased continuously over the years, at an average growth rate of 36.60 per cent during the period 1991 to 2014. Similarly, domestic revenue of IT-BPM sector also increased, but at a lower growth rate. This is because domestic market in India is captured by multinational giants against Indian firms, which do not possess full comparative advantage in the case of IT-BPM sector. Indian firms are producing low skill activities required for production, mainly concentrated only in the export sector. Direct employment, excluding hardware from IT-BPM sector, has grown at an average rate of 18.08 per cent over the study period. The determinants of IT-BPM exports indicated previous year’s export demand to be significantly contributing the highest to export growth rate. This was followed by GDP growth rate, implying that overall growth of the economy leads to significant increase in export growth. Increased labour productivity followed next in significantly encouraging export growth.
Research limitations/implications
Generalization of the results may not be possible, as Indian conditions and policies vary.
Practical implications
The paper has implications for the expansion of domestic market, diversification of trade and products, innovations for increasing competitiveness and sustainability in the global market in the wake of stiff competitions from new competitors.
Originality/value
This paper focuses on originality in analysis of determinants of export growth.