The Unassuming Economist

From a paper by Weizhuojia Peng, Weibai Liu, Yijia Li:

“This paper examines the impact of financial development on pollution reduction at the enterprise level using statistical data from 30 provinces in China from the period 2018 to 2022. The effect of financial development on pollution reduction is examined separately from the perspectives of scale effect and technology effect. Although there are significant regional differences in the impact of the increased use of financial instruments on pollution reduction in different provinces of China, on balance the greater use of financial tools decreases pollution, reflecting the technological effect of utilizing financial tools exceeds the scale effect. Heterogeneity analysis shows that the impact of financial development on pollution reduction of private enterprises is higher than that of state-owned enterprises. The paper also discusses the implications for China in achieving carbon peak and carbon neutrality and promoting high-quality economic development and an economic green transformation. Since improvement in the financial system is a key to improving the environment, the increased efficiency of financial tools enhances this improvement.”

From a paper by Asiye Öznur Ümit and Sinem Eyüboğlu:

“This research examines effects of financial development, economic growth, government
expenditures, urbanization, and trade openness on income inequality in the leading emerging economies
of the G-20 (Argentina, Brazil, China, India, Indonesia, Mexico, Russia, and Turkiye) for the period from
1989 to 2021. The findings confirm the existence of a cointegration nexus among the variables over the
long-term. According to the common correlated effects mean group estimator, financial development has
negative effects on income inequality in the panel. Factors such as government expenditures and trade
openness demonstrate positive effects on income inequality. In the country-specific effects, we find that
the impact of financial development on income inequality is negative and statistically significant in
Argentina, India, and Russia. The influence of economic growth on income inequality is positive and
significant in Indonesia, Mexico, and Turkiye. Government expenditures on income inequality appear to
be positive in Argentina, Indonesia, and Mexico. Finally, trade openness demonstrates a positive and
significant effect in India, Indonesia, Mexico, and Turkiye. Among the reasons for the differences in test
results across countries are variations in their political structures, particularly the high inflation and
macroeconomic instability in Turkey, the presence of the informal economy and corruption in Brazil,
Indonesia, Turkey, and China, as well as regional inequalities. In this context, based on the overall panel
test results, it is recommended that policymakers increase financial inclusion, reduce regional disparities,
reduce corruption, increase social assistance, and balanced trade policy to enhance the impact of financial
development on income distribution”

1. Housing View – February 2, 2024
2. Housing View – January 5, 2024
3. Housing View – January 19, 2024
4. Housing View – March 1, 2024
5. Housing View – July 26, 2024
6. Housing View – February 23, 2024
7. Housing View – January 26, 2024
8. Housing View – January 12, 2024
9. Housing View – August 23, 2024
10. Housing View – March 22, 2024

From a paper by Bello Dalhatu:

“In an effort to provide policy recommendations for Nigeria’s transition to full-fledged inflation targeting, this study examines Ghana’s monetary policy frameworks (monetary aggregates targeting and inflation targeting) using ARDL bounds test for cointegration and Error Correction Mechanism (ECM) on annual time series data spanning 1965 to 2022 obtained from the Bank of Ghana database and the World Bank database on World Development Indicators. The results demonstrate that monetary aggregates targeting has not been successful in both the short-run and long-run periods in moderating and stabilizing inflation; however, inflation moderated under inflation targeting in both the short run and the long term. This indicates that inflation targeting proves to be a superior monetary policy framework for inflation control.”