New Evidence on the Relationship Between Crude Oil Consumption and Economic Growth in the US: A Quantile Causality and Cointegration Approach

Journal of Quantitative Economics - This paper investigates the long-run and short-run relationship between WTI crude oil consumption and economic growth, covering the US economy for the period...     

Does inflation cause gold market price changes? evidence on the G7 countries from the tests of nonparametric quantile causality in mean and variance

This article utilizes the newly proposed nonparametric causality-in-quantiles test to examine the predictability of mean and variance of changes in gold prices based on inflation for G7 countries. The causality-in-quantiles approach permits us to test for not only causality in mean but also causality in variance. We start our investigation by utilizing tests for nonlinearity. These tests identify nonlinearity, showing that the linear Granger causality tests are subject to misspecification error. Unlike tests of misspecified linear models, our nonparametric causality-in-quantiles tests find causality in mean and variance from inflation to gold market price changes between the 0.20 quantile and the 0.70 quantile, implying that very low- and high-price changes in gold markets are not related to inflation. These changes should be related to other sources, such as financial shocks and exchange market shocks. We find support that gold serves as a hedge against inflation, but only in the mid-quantile ranges, i.e. quantiles from 0.20 to 0.70. Our results show that gold does not serve as a hedge against inflation during periods when gold market price changes are very low or very high, which are respectively quiet and highly volatile periods.     

The Determinants of Chinese Outward Foreign Direct Investment: A Closer Look

Over the last fifteen years, China rapidly expanded its outward foreign direct investment (OFDI) through remarkable economic growth and the “go global” policy. Chinese firms explored investment avenues especially in developing and emerging countries. As a result, China became the third largest contributor of OFDI. We examine the determinants of Chinese OFDI in 67 countries during the period lasting from 2006 to 2015 using the feasible generalized least square method. We find that the size of the economy, market opportunities, cost advantages due to low wage structure, ease of doing business, country risk, and geographical proximity are the prominent factors leading to changes in Chinese OFDI in developing and emerging economies. We find that China’s investments in different developing and emerging countries are driven by a different set of factors and the determinants of Chinese OFDI vary in low and high per capita income countries.     

Subsidiary initiatives and subsidiary autonomy: Evidence from New Zealand and Brazil

The paper uses evidence from a developed and a developing economy (New Zealand and Brazil) to study the consequence of multinational subsidiary initiative taking for subsidiary autonomy. Initiative taking and autonomy are known to increase the likelihood of a subsidiary continuing to grow and develop. Uncertainty remains as to whether subsidiaries acquire or lose autonomy as they engage in initiatives partly as the willingness to pursue initiatives can be viewed positively or negatively by the parent company. By using cross-country data and distinguishing three types of initiative according to the scope of their potential impact (internal, local and global) the study provides a basis for examining this topic that improves on evidence from a single country or single initiative study. Data from 200 multinational subsidiaries in New Zealand and 172 in Brazil are gathered for analysis. As well as examining the overall relationship between initiative taking and autonomy the study presents the first evidence on this topic for subsidiaries in New Zealand and Brazil. The overall conclusion is that subsidiary initiative taking is likely to increase subsidiary autonomy but the affect over autonomy is dependent upon the type of initiative that the subsidiary undertakes: subsidiary autonomy is more likely to increase as a result of a local market initiative than a global or internal market initiative.     

Multivariate-based Granger causality between financial deepening and poverty: the case of Pakistan

This paper deals with the empirical investigation of causal relationship between financial deepening, economic growth and poverty reduction using quarter frequency data in case of Pakistan over the period of 1972–2011. We applied the autoregressive distributed lag model bounds testing approach by incorporating structural breaks stemming in the series. The order of integration of the variables is examined by applying structural break unit root test. Our empirical exercise indicated that the long run relationship between financial deepening, economic growth and poverty reduction exists in case of Pakistan. The causality analysis implied that causality results are sensitive with the use of proxy for poverty reduction.     

Green innovation and SO2 emissions: Dynamic threshold effect of human capital

Green innovation is an effective path to decrease environmental pollutions. It is of immense interest to evaluate the roles of green innovation on SO₂ emissions reduction. We also investigate the static and dynamic threshold effect of human capital in the impacting paths of different innovations on SO₂ emissions. The empirical results show that the design patent increases SO₂ emissions while the development of utility patent can decrease SO₂ emissions based on the static analysis and dynamic analysis. Both the “pollution halo” and the “pollution heaven” hypotheses of foreign direct investment (FDI) are validated in China. Moreover, green innovation positively affects SO₂ emission reduction based on the System Generalized Method of Moment (SYS-GMM) estimation. Both static and dynamic panel threshold regression results reveal that the positive effects of different innovations will become larger when human capital exceeds the corresponding threshold values. Hence, it is important to enhance green human capital.     

Integrating Behavioural and Branding Perspectives to Maximize Green Brand Equity: A Holistic Approach

The aim of this study is to expand the existing understanding of green consumers' behaviour by proposing and testing an integrated conceptual model that explores the influence of consumers' personal concerns for the environment and general attitudes towards green products on brand‐related knowledge structures (image and associations) and relationship preferences (trust and brand equity) for green brands. A questionnaire‐based survey method was used to collect data using convenience sampling. One hundred and ninety‐nine usable responses were obtained. A structural equation modelling procedure was used to test the proposed hypotheses. The results confirmed that a positive relationship exists between consumer concern for environmental values and general attitudes towards green products. Both these constructs influence consumers' knowledge structure of a green brand (image and associations). Furthermore, a strong relationship exists between consumers' knowledge structure (image and associations) and their relational preference (trust and brand equity) with green brands. These findings are important for business strategy formulation by providing empirical support for the idea that a firm should invest its resources not only to project its environmentally friendly brands but also to build consumers' concern for environmental values and their attitude towards green products. Copyright © 2016 John Wiley & Sons, Ltd and ERP Environment     

Age diversity management and organisational outcomes: The role of diversity perspectives

Several macro‐level and meso‐level factors have led to unprecedented proportions of aged employees in organisations, resulting in higher levels of age diversity. Little is known about which age diversity practices and programmes are effective in which types of organisations for which outcomes. Derived from social exchange theory, this paper proposes and tests positive relationships between age diversity practices and organisational outcomes and work‐life programmes and organisational outcomes. Derived from contingency theory, it also proposes and tests for a moderating effect of diversity perspective (fairness and discrimination vs. synergy) on the two main relationships. Data were collected from 248 medium to large‐sized for‐profit organisations. The results partially support both main effect hypotheses and one moderating effect hypothesis. The findings suggest different organisational outcomes for age diversity practices and work‐life programmes. Theoretical and practical implications are discussed.     

Electricity consumption and economic growth empirical evidence from Pakistan

The present article uses the Autoregressive Distributed Lag (ARDL) bounds testing procedure to identify the long run equilibrium relationship between electricity consumption and economic growth. Toda Yamamoto and Wald-test causality tests have identified the direction of the causal relationship between these two variables in the case of Pakistan in the period between 1971 and 2008. Ng-Perron and Clement-Montanes-Reyes unit root tests are used to handle the problem of integrating orders for variables. The results suggest that the two variables are in a long run equilibrium relationship and economic growth leads to electricity consumption and not vice versa.     

Labour productivity and employment in Australian manufacturing SMEs

This paper examines the relationship between labour productivity and employment in Australian manufacturing small and medium enterprises (SMEs). The results indicate that labour productivity of SMEs varies substantially between industries within the manufacturing sector, but on average labour productivity for manufacturing SMEs increased at a faster rate than that of large manufacturing enterprises across all industries. All manufacturing industries except one recorded employment growth during the period under study. However like labour productivity growth, employment growth also varies across industries within the manufacturing sector. Yet the study could not establish any definite relationship between labour productivity growth and employment. This finding is consistent with some previous studies.