Karim Eslamloueyan; Emad Aldeen Sakhaei
Volume 16, Issue 46 , April 2011, , Pages 61-76
Abstract
Using panel data error correction models, we investigate the short- and long-run causality between financial development and economic growth in the Middle East. Three different indicators are used to measure financial developments. Generalized Least Square (GLS) method with cross-section Seemingly Unrelated ...
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Using panel data error correction models, we investigate the short- and long-run causality between financial development and economic growth in the Middle East. Three different indicators are used to measure financial developments. Generalized Least Square (GLS) method with cross-section Seemingly Unrelated Regression (SUR) and fixed effects in cross dimension is used to estimate the models. Our estimation results suggest that there is bidirectional causality between financial development and economic growth in both the short- and long run. The result underscores the feedback between finance and growth and hence advocates the third view that emphasizes on mutual causality between financial development and economic growth. In other words, finance can promote growth and in turn output growth will enhance financial development in the Middle East. This result can have important policy implications for both policymakers and international institutions.
Mohamad Hoseyn Poor Kazemi; Ilnaz Ebrahimi
Volume 10, Issue 34 , April 2008, , Pages 57-71
Abstract
The Environmental Kuznets Curve (EKC) is an empirical inverted U-shaped relationship between pollution and income. In the early stages of economic growth, pollution increases but beyond some level of income per capita the trend reverses. In this paper, we examine the validity of EKC for a sample of 13 ...
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The Environmental Kuznets Curve (EKC) is an empirical inverted U-shaped relationship between pollution and income. In the early stages of economic growth, pollution increases but beyond some level of income per capita the trend reverses. In this paper, we examine the validity of EKC for a sample of 13 Middle East countries. Sample period include 1998-2003. A large number of EKC studies focus only on developed countries or a sample of developed and developing countries but for the first time our sample consist solely of emissions from Middle Eastern countries. We have used CO2 as the main pollutant factor in this study. Our log-log specification results suggest a monotonic and increasing relationship between income and pollution, but regression coefficients are not statistically significant. However, in our linear model all the coefficients are statistically significant and the EKC hypothesis can not be rejected.
