Is globalization detrimental to financial development? Further evidence from a very large emerging economy with significant orientation towards policies

This study attempts to explore the relationship between globalization and financial development by endogenizing economic growth, population density, inflation and institutional quality for India during the period from 1971–2013. Using the more conclusivecombined cointegration method, the study provides evidence of cointegration among these variables. The long-run and short-run estimates from the ARDL model and causality tests, respectively, suggest that globalization in its all forms (political, social and economic) and its overall measure as well as inflation are detrimental to financial development, while economic growth and population density both promote financial development. Furthermore, the results also point out that institutional quality is not conducive to financial development in India, and there exists a feedback effect between financial development and inflation. Moreover, financial development is influenced by economic growth, institutional quality and population density.     

How strong is the causal relationship between globalization and energy consumption in developed economies? A country-specific time-series and panel analysis

We examine the causal relationship between globalization, economic growth and energy consumption for 25 developed economies using both time series and panel data techniques for the period 1970–2014. Due to the presence of cross-sectional dependence in the panel (countries from Asia, North America, Western Europe and Oceania), we employ the cross-sectional augmented IPS test to ascertain unit root properties. The cointegration test results indicate the presence of a long-run association between globalization, economic growth and energy consumption. Long-run heterogeneous panel elasticities are estimated through the common correlated effects mean group estimator and the augmented mean group estimator. The empirical results reveal that, for most countries, globalization increases energy consumption. In the USA and UK, globalization is negatively correlated with energy consumption. The causality analysis indicates the presence of the globalization-driven energy consumption hypothesis. This empirical analysis suggests insightful policy guidelines for policy makers using globalization as an economic tool to utilize energy efficiently for sustainable economic development in the long run.     

Cross-sectional and time-series momentum returns: are Islamic stocks different?

We search for differences in both unconditional and conditional momentum returns of Islamic and Non-Islamic stocks and test implications of competing behavioural theories that aim to explain momentum returns. Our results show that there is no significant difference in momentum returns between Islamic versus Non-Islamic stocks with respect to both cross-sectional (CS) and time-series (TS) momentum strategies even when we condition momentum returns on market dynamics, information uncertainty and idiosyncratic volatility. We also find that the TS strategy outperforms (underperforms) the CS strategy in market continuations (transitions) consistent with the recent evidence in the U.S. market.

Furthermore, we find that CS and TS strategies of both Islamic and Non-Islamic stocks are profitable only when the market continues in the same state consistent with overconfidence driving momentum returns of both Islamic and Non-Islamic stocks.     

Hiring and Separation Rates Before and after the Arab Spring in the Tunisian Labour Market

We seek to explore the hiring and separation rates in Tunisia before and after the Arab Spring based on quarterly business level data for 503 firms over the span of January 2007 to December 2012. Furthermore, we examine whether employers are willing to dismiss older workers to trigger an effective increase in mobility that will open new opportunities for the youth community. We build our analysis upon six main empirical models to study employment decisions reflected by major indicators such as the number of hiring, number of separations, total employment effects, male‐female ratio, age cohorts, labour mobility and net employment. The results show that the Arab Spring has created structural unemployment trends. In addition, we note that the 2008 global turmoil has fostered the firing level of employment. Our conclusions also indicate that the response of Tunisia's government to high unemployment rates caused by the financial meltdown in 2008 and the events in 2011 was not sufficient to remove the attached lingering effects that still distress the country's labour market. In addition, our findings emphasize the significant challenges faced by Tunisian youth that could be mitigated by efficient policy actions to incentivize training and development geared towards the private sector.     

Correlation and Volatility Dynamics in International Real Estate Securities Markets

We study international correlation and volatility dynamics of publicly traded real estate securities using monthly returns from 1984 and 2006. We also examine, for comparison, the correlations among the corresponding stock markets. A multivariate dynamic conditional correlation model captures the time-varying correlation within the full period. We confirm lower correlations between all real estate securities market returns than those between the stock market returns themselves. Some significant variations and structural changes in the correlation structure happened within the sample period. We detect a strong and positive connection between real estate securities market correlations and their conditional volatilities. We also find the international correlation structure of real estate securities and the broader stock market are linked to each other. Our results have economic motivations regarding the potential integration of international real estate securities markets and the possibility of including information on changing correlations and volatilities to design more optimal portfolios for international real estate securities.

Rural families food intake behaviour in relation to livelihood diversification,income differences and family size

The livelihood diversification significantly contributes to the family income having effect on food varieties' consumption in rural families of different sizes. This study investigated the food intake differences among rural families considering different income levels and family sizes. Moreover, barriers faced by the rural families to increase the consumption of food varieties were also analysed. A total of 200 rural families were selected through multistage purposive and random sampling techniques in the Punjab province of Pakistan and were directly interviewed and categorized first into low and high livelihood diversified families. The food groups were derived by assigning individual food to conventional food group taxonomies, and two‐way ANOVA (4 (income groups) × 3 (family size groups) was separately conducted for low and high livelihood diversified families. The income instability, prices of food items, market distance and storage were perceived as barriers for increasing food consumption. The high livelihood diversified families significantly and regularly consumed more food items than low diversified families. The rural households both in low and high livelihood diversified family categories having low income and high family size consumed less expensive food items. The regular consumption of fruits, bakery products, and livestock and dairy items was greatly associated with high income and small family size. One of the most remarkable findings of the multivariate multiple regression model was the households belonging to the lowest income group were significantly lowering the consumption of livestock and dairy food items as the family size increased from small to large family size. The interaction effect was highly associated with per capita income because the consumption of food items increased with the rise in income irrespective of the family size. However, family size groups showed different patterns of food intakes with different income levels. Government agencies should assist rural households to diversify their income portfolios for better nutrition.     

Does economic liberalization promote economic growth in Pakistan? An empirical analysis

The study aims to examine the short and long term impacts of economic liberalization on economic growth in case of Pakistan from 1971 to 2011. Economic liberalization consists of reforms in both trade liberalization and financial liberalization. This study contributes to the existing literature by constructing an economic liberalization index using principal component analysis. Our results show, firstly, that economic liberalization reforms have a positive impact on economic growth in the short run. However, trade liberalization is negatively associated with economic growth in the long-run. Secondly, the estimated coefficients through rolling window show that impact of economic liberalization on real GDP is unstable during the selected period of sample. This study recommends to policy makers to enhance human capital by having more expenditure on education sector. In addition, financial reforms by way of a sectoral credit allocation should be introduced to further promote the economic growth.     

Developing environmental performance measures for tourism using a Tourism Satellite Accounts approach: a pilot study of the accommodation industry in Egypt

Considering the recognized pressures of tourism on the natural environment, it is important to quantify and understand those pressures. This paper adopts an approach based on the Tourism Satellite Accounts conceptual framework to measure selected environmental pressures of tourism. Egypt is selected for the case study and the accommodation industry group is used as a pilot test (reference year 2009) for the feasibility of the proposed methodology. Results show that each US$ 1 million of direct value added supported by tourists expenditure in the accommodation industry group requires 18.6 thousand m³ of water, 51.1 tons of fuel, and 426 megawatt hours (Mwh) of electricity. Similarly, each US$ 1 million of the direct value added generated by tourists expenditure for accommodation creates directly about 464.3 tons of CO₂ emissions. It is estimated that serving inbound tourism is a higher user of energy resources than serving domestic tourism, which is higher in terms of water use. These environmental performance measures enable the Egyptian Government to examine the potential environmental pressures and financial costs of attracting new tourists.