Investigating the impacts of energy consumption,real GDP,tourism and trade on CO2 emissions by accounting for cross-sectional dependence: A panel study of OECD countries

The objective of this study is to analyse the long-run dynamic relationship of carbon dioxide emissions, real gross domestic product (GDP), the square of real GDP, energy consumption, trade and tourism under an Environmental Kuznets Curve (EKC) model for the Organization for Economic Co-operation and Development (OECD) member countries. Since we find the presence of cross-sectional dependence within the panel time-series data, we apply second-generation unit root tests, cointegration test and causality test which can deal with cross-sectional dependence problems. The cross-sectionally augmented Dickey-Fuller (CADF) and the cross-sectionally augmented Im-Pesaran-Shin (CIPS) unit root tests indicate that the analysed variables become stationary at their first differences. The Lagrange multiplier bootstrap panel cointegration test shows the existence of a long-run relationship between the analysed variables. The dynamic ordinary least squares (DOLS) estimation technique indicates that energy consumption and tourism contribute to the levels of gas emissions, while increases in trade lead to environmental improvements. In addition, the EKC hypothesis cannot be supported as the sign of coefficients on GDP and GDP² is negative and positive, respectively. Moreover, the Dumitrescu–Hurlin causality tests exploit a variety of causal relationship between the analysed variables. The OECD countries are suggested to invest in improving energy efficiency, regulate necessary environmental protection policies for tourism sector in specific and promote trading activities through several types of encouragement act.     

Factors affecting bank loan quality: a panel analysis of emerging markets

This study investigates the factors affecting the loan quality of banking sector in seventeen emerging and developing markets using quarterly panel dataset covering period of 2010–2019 and utilising feasible generalised least square methodology. Our empirical analysis suggests that inflation and lending rates negatively affect the banks’ loan quality measured by non-performing loans. On the contrary, economic growth and capital adequacy show a positive impact on banks’ loan quality. The inclusion of the ratio of net open position in foreign exchange to capital and its’ lagged values, as an additional factor, has marked out this research from other studies. Our results reveal that the ratio has a significant negative impact on loan quality in banking. This finding, as it was also seen in Asian crises of 1997, indicates that the higher the ratio net open position in foreign exchange to capital cause moral hazard problem leading to the higher non-performing loans in banking sectors.