ABSTRACT
Natural resource price volatility has been a major concern in recent time, especially during the COVID 19 period. Although several empirical research have looked into the oil and natural resources prices nexus with economic growth, but, our study makes a significant contribution to the present literature by estimating the long run natural resource price volatility influence on economic growth as well as the causal associations between volatility of the prices of natural resources and economic growth for BRICS economies over 1995-2020 period. To conduct empirical estimation, the study has used new and advanced (CUP-FM) continuously updated fully modified and continuously updated bias-corrected (CUP-BC) estimators for long term influences of the natural resources prices and (Dumitrescu and Hurlin, 2012) heterogeneous test for panel causality for the estimation of the causal relationship between the variables. The results provide clear evidences about the negative influence of volatility in natural resources prices, whereas positive impact of gas and oil rents on economic growth or economic performance of the BRICS economies. Moreover, bidirectional causal association is also revealed from our empirical findings to exist between economic growth and price volatility of natural resources. The findings of our study are robust to various policy implementations. It is recommended to reduce the reliance of natural resources as well as the adoption of short run and long run natural resource hedging policies to mitigate the detrimental impacts of price volatility of natural resources on economic growth and environment.
ABSTRACT
The present study empirically probed into non-linear associations between natural resources commodity prices and green finance measured in terms of green bonds. Although the literature has sufficient evidences for the association of energy stocks and precious metals like gold and silver with green bond market, however, the number of studies investigating the relationship between natural resources like oil prices, natural gas prices and coal prices are very scarce. Therefore our study accompanies those few studies that tried to explore this association. For empirical estimation, the QARDL estimation approach followed by Wald test as well as Granger causality tests is employed to analyze the daily global data, spanning over Jan 2010 to Dec 2021. The results of our empirical calculations show that over the long term, green bonds are strongly and favourably correlated with rising oil prices at all quantiles. However, only at medium to higher quantiles are natural gas prices and coal prices highly correlated with green bonds (in a negative and positive manner, respectively). i.e., (0.05–0.40). Oil prices and natural gas has significant impact on green bonds only at low quantiles (positive and negative, respectively), while coal prices have significant (positive impact) on green bonds at all quantiles. The error correction term fulfills all the requirements i.e., it is significant and negative, which shows that there exists a long term stable association between the studied variables and the green bonds globally. Moreover, the Granger causality test shows the presence of the bi-directional associations between the prices of these resources with green bonds. This research offers a number of policy proposals to assist governments, decision makers and investors in making better green bond market decisions.
ABSTRACT
Natural resource price volatility has been a major concern in recent time, especially during the COVID 19 period. Although several empirical research have looked into the oil and natural resources prices nexus with economic growth, but, our study makes a significant contribution to the present literature by estimating the long run natural resource price volatility influence on economic growth as well as the causal associations between volatility of the prices of natural resources and economic growth for BRICS economies over 1995–2020 period. To conduct empirical estimation, the study has used new and advanced (CUP-FM) continuously updated fully modified and continuously updated bias-corrected (CUP-BC) estimators for long term influences of the natural resources prices and (Dumitrescu and Hurlin, 2012) heterogeneous test for panel causality for the estimation of the causal relationship between the variables. The results provide clear evidences about the negative influence of volatility in natural resources prices, whereas positive impact of gas and oil rents on economic growth or economic performance of the BRICS economies. Moreover, bidirectional causal association is also revealed from our empirical findings to exist between economic growth and price volatility of natural resources. The findings of our study are robust to various policy implementations. It is recommended to reduce the reliance of natural resources as well as the adoption of short run and long run natural resource hedging policies to mitigate the detrimental impacts of price volatility of natural resources on economic growth and environment.
ABSTRACT
Coronavirus disease (COVID-19) is having an unprecedented and unpredictable impact on the world's economy. The pandemic has driven the world toward adapting to the current circumstances regardless of the business, sector, or industry. The coronavirus epidemic (COVID19) has affected the global economy and service sector. The purpose of the current study is to assess the effect of COVID-19 on service sector growth and sustainability. Global sectors and industries are trying to anchor themselves amidst the pandemic. The study focuses on the sectors that are badly hit by the outbreak and discussed the strategies and responses different countries are taking to sustain their economies. This study concludes that the vital role of Information Technology and digitization supports the economies in their fight against the pandemic and helps them sustain themselves amid crises. This study also contributes to the body of literature by suggesting IT-based solutions for various industries to elevate effective responsiveness and avoid significant losses.