This research paper aims to examine the association between financial development and environmental quality in 31 European Union (EU) countries from 2001 to 2020. This study proposed an estimation model for the study by combining regression models. The regression model has a dependent variable, carbon emissions, and five independent variables, including Urbanization (URB), Total population (POP), Gross domestic product (GDP), Credit to the private sector (FDB), and Foreign direct investment (FDI). This research used regression methods such as the Fixed Effects Model, Random Effects Model, and Feasible generalized least squaresThe findings reveal that URB, POP, and GDP positively impact carbon emissions in EU countries, whereas the FDB variable exhibits a contrary effect. The remaining variable, FDI, is not statistically significant. In response to these findings, we advocate for adopting transformative green solutions that aim to enhance the quality of health, society, and the environment, offering comprehensive strategies to address Europe’s environmental challenges and pave the way for a sustainable future.
The consensus is that price stability promotes sustainable economic growth while excessive inflation harms growth. This study assesses the linkage between inflation and economic growth in South Africa to determine the optimal inflation rate threshold for the sustainable growth of the economy. Quarterly data from 1995 to 2022 was analysed through the ARDL and threshold regressions. The ARDL and threshold regressions estimate established a relationship between inflation and economic growth and computed the optimal inflation rate threshold for economic growth at 6 percent. The results also established that both the repo rate (repurchase rate) and real effective exchange rate have a negative relationship with economic growth. The Toda-Yamamoto causality test result indicated a unidirectional causality runs from inflation to economic growth. These results are crucial for the South African Reserve Bank to discharge its monetary policy functions to attain and maintain price stability. Therefore, this study offers the Bank a roadmap for targeting an inflation rate that aligns with the nation’s long-term objectives for sustainable economic growth.
The increase in energy consumption is closely linked to environmental pollution. Healthcare spending has increased significantly in recent years in all countries, especially after the pandemic. The link between healthcare spending, greenhouse gas emissions and gross domestic product has led many researchers to use modelling techniques to assess this relationship. For this purpose, this paper analyzes the relationship between per capita healthcare expenditure, per capita gross domestic product and per capita greenhouse gas emissions in the 27 EU countries for the period 2000 to 2020 using Error Correction Westerlund, and Westerlund and Edgerton Lagrange Multiplier (LM) bootstrap panel cointegration test. The estimation of model coefficients was carried out using the Augmented Mean Group (AMG) method adopted by Eberhardt and Teal, when there is heterogeneity and cross-sectional dependence in cross-sectional units. In addition, Dumitrescu and Hurlin test has been used to detect causality. The findings of the study showed that in the long run, per capita emissions of greenhouse gases have a negative effect on per capita health expenditure, except from the case of Greece, Lithuania, Luxembourg and Latvia. On the other hand, long-term individual co-integration factors of GDP per capita have a positively strong impact on health expenditure per capita in all EU countries. Finally, Dumitrescu and Urlin’s causality results reveal a significant one-way causality relationship from GDP per capita and CO2 emissions per capita to healthcare expenditure per capita for all EU countries.
The article provides evidence on the effect of local public governance on the impact of public investment on local and regional economic growth, using spatial and regional logic. The research uses the spatial Durbin model and produces a panel data set that was conducted on 63 provinces of Vietnam from 2006 to 2022. Based on the interaction between public governance and public investment, the main findings indicate that their interaction plays an important role in adjusting the effects of public investment and public governance on economic growth not only in the locality but also spillover to neighboring localities in both the short and long terms. It suggests that local public governance not only hampers the impact of local public investment on local economic growth but also has spillover effects on the growth of neighboring provinces or regions in Vietnam. Additionally, the results of detailed analysis of PCI component indicators show that many aspects of local public governance are hindering local economic growth but contributing to promoting neighboring localities economic growth. Or, it has no effect the locality but promote or hinder the regional economic growth. The findings in this study implies that authorities of localities need to be cautious when using resources to improve the various aspects of public governance when designing strategies to enhance the quality of local public governance. It also suggests that this spillover effect is a crucial factor in advocating for more redistributive fiscal policies and regional governance policies aimed at reducing economic disparities caused by territorial boundaries. Therefore, authorities should prioritize regional cooperation strategies in their decisions regarding public governance and public capital allocation.
Globalization and economic integration have an impact on increasing trade volume and economic growth in various countries, especially those that are open in their economies. This situation also provides ease of capital mobility between countries, which makes investment not only rely on domestic investment but also on foreign direct investment. Exchange rates and inflation also affect export growth, imports, and economic growth. The purpose of this study is to determine the effect of exchange rate, inflation, foreign direct investment, government expenditure, and economic openness on export and import growth. This study used time series data during the period 1980–2021, sourced from UNCTAD, ASYB, and Indonesian Central Bank (BI). The analysis model used is multiple linear regression with the help of EViews software, which first tests classical assumptions so that the regression results are Best Linier Unbiased Estimator (BLUE). The results show that foreign direct investment and government spending can significantly increase the rate of exports and imports. Meanwhile, the depreciating rupiah against the US dollar cannot encourage an increase in both exports and imports. Furthermore, foreign direct investment, government spending, and economic openness can significantly increase economic growth. The other variables, net exports and inflation, have no effect on Indonesia’s economic growth rate.
This study aims to analyze how public debt influences economic growth in Kosovo, using quarterly data from Q1 2008 to Q4 2022 and employing the generalized method of moments (GMM). The research reveals that there is a negative relationship between public debt and economic growth when other factors such as trade openness, total investment, current account balance, and primary balance are considered. Furthermore, the findings confirm an inverted “U-shaped” relationship between public debt and economic growth, indicating that the optimal debt level is between 27.75% and 36.2% of GDP.
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