Hamisu Sadi Ali, Ph.D | UPM - Universiti Putra Malaysia (original) (raw)

Papers by Hamisu Sadi Ali, Ph.D

We extended the study of Zhang and Zhao (2014) for China, which examines the regional impact of c... more We extended the study of Zhang and Zhao (2014) for China, which examines the regional impact of carbon dioxide emissions on income inequality. The present article examine the dynamic impact of income inequality on carbon dioxide emissions in Africa. We applied heterogeneous panel autoregressive distributed lag techniques of mean group (MG) and pooled MG suggested by Pesaran et al. (1999), during 1984-2001. The main empirical result reveals that; the relationship between income inequality and carbon dioxide emissions is negative and statistically significant. This means that; widening income inequality could lead to the reduction of carbon dioxide emissions in the sampled countries. Moreover, the variables of trade openness, per-capita gross domestic product (GDP), and urbanization are positive and statistically significant; this means that increase in any of these variables could lead to overall increase in the level of carbon dioxide emissions. Therefore, in providing policies that will be used to improve environmental quality in Africa, income inequality should not be considered because it is reducing the level of environmental degradation through reduction of carbon dioxide emissions. Hence, policy makers should not consider income inequality when formulating environmental policies among the selected sample countries.

This paper reexamines the government revenue and expenditure relationship in South Africa using E... more This paper reexamines the government revenue and expenditure relationship in South Africa using Enders and Siklos' Threshold adjustment and Granger causality tests. The paper allows for structural breaks in the unit root and cointegration tests. The results indicate the absence of any asymmetries in both the threshold autoregression and momentum threshold autoregression specifications of adjustments in the South African's budgeting process. The estimated symmetric error-correction models provide support for the fiscal synchronization hypothesis of government revenues and expenditures for long-run and short-run dynamic equilibrium. These findings indicate that the South African fiscal authorities should try to maintain or even improve the control of their fiscal policy instruments to sustain the prudent budgetary process.

The objective of this paper is to examine the dynamic impact of urbanization, economic growth, en... more The objective of this paper is to examine the dynamic
impact of urbanization, economic growth, energy consumption,
and trade openness on CO2 emissions in Nigeria
based on autoregressive distributed lags (ARDL) approach for
the period of 1971–2011. The result shows that variables were
cointegrated as null hypothesis was rejected at 1 % level of
significance. The coefficients of long-run result reveal that
urbanization does not have any significant impact on CO2
emissions in Nigeria, economic growth, and energy consumption
has a positive and significant impact on CO2 emissions.
However, trade openness has negative and significant impact
on CO2 emissions. Consumption of energy is among the main
determinant of CO2 emissions which is directly linked to the
level of income. Despite the high level of urbanization in the
country, consumption of energy still remains low due to lower
income of the majority populace and this might be among the
reasons why urbanization does not influence emissions of
CO2 in the country. Initiating more open economy policies
will be welcoming in the Nigerian economy as the openness
leads to the reduction of pollutants from the environment particularly CO2 emissions which is the major gases that deteriorate physical environment.

The present article examines the dynamic linkages between biomass energy consumption, capital sto... more The present article examines the dynamic
linkages between biomass energy consumption, capital
stock, human capital and economic growth across
selected Sub-Saharan African countries based on
dynamic heterogeneous panels of a mean group
(MG) and pooled mean group (PMG) techniques.
The finding based on PMG as the preferred method
reveals that biomass energy consumption, capital
stock and human capital are statistically significant,
which means aforementioned variables have positive
significant impact on economic growth in the countries
studied. When an alternative panel estimation
techniques of panel cointegration, dynamic OLS
(DOLS) and fully modified OLS (FMOLS) are
applied, the result based on panel cointegration
technique reveals that biomass energy consumption,
capital stock, human capital and economic growth are
cointegrated as null hypothesis of most statistics are
rejected at 1 %level of significance. The finding based
on FMOLS shows that biomass energy consumption,
capital stock and human capital positively influences
economic growth at 1 % level and same result is
obtained from panel OLS. The result based on DOLS
however reveals that biomass energy consumption and
capital stock are significant at 1 % on economic growth while human capital is insignificant. Considering
its positive effect on economic growth with little
or no environmental degradation when compared with
fossil fuel uses, consumption of biomass energy is
more preferable in these countries therefore is the best
option to adopt by the policy makers of Sub-Saharan
African countries.

Using monthly data from January, 1980 to July 2013, the aim of the article is to find out whether... more Using monthly data from January, 1980 to July 2013, the aim of the article is to find out whether
there is cointegrating relationship between exchange rates and crude oil prices in India. The
result indicates that there exists cointegration between the variables and speed of adjustment
shows symmetric based on TAR model, while MTAR model exhibit asymmetric adjustment. The
findings indicated that exchange rates have significant influence on crude oil prices in India and
the adjustment to equilibrium when variables deviated is non-linear. The implication is that Indian policy makers should focus more on their exchange rates dynamics in line with the
persistent rises of crude oil prices that affects other macroeconomic variables specifically
exchange rates that have significant influence on international trade considering the relevance
of India in the international export market.

Using ARDL bound test procedure the present study investigates whether economic growth influences... more Using ARDL bound test procedure the present study investigates whether economic growth influences financial sector development through stock market development in South Africa for the period of 2005 to 2014. The finding shows that growth of the economy enhances financial sector development through stock market medium in South Africa both in short run and long-run phenomenon. The finding confirmed the existence of Joan Robison (1952) supply leading hypothesis in the country investigated. The policy implication is that the authority in this country needs to put additional efforts in policies that will boost the overall performance of the economy considering its positive influence on financial sector development via stock market boost. Effective policies that will enhance the competitiveness of the stock market performance are essential ingredient that will boost the performance of the stock market and hence will have multiplier effect on the overall economy.

Is the inflow of migrant workers' remittance to Kenyan economy a blessing or a curse? This questi... more Is the inflow of migrant workers' remittance to Kenyan economy a blessing or a curse? This
question is what motivated the study considering the status of Kenya in Africa as one of the top recipients
of migrant workers' remittances from various developed and developing countries. The outcome revealed
that variables were co-integrated as evidently shown by Engle-Granger technique. The asymmetric cointegration
test however shows that the result based on Threshold Autoregressive (TAR) and Momentum
Threshold Autoregressive (MTAR) signifies that variables are not co-integrated. The finding suggest that
inflow of remittances trigger real exchange rates in Kenya, this reconfirmed the Dutch disease
phenomenon as mainly found in majority of the developing countries considering the nature of the economies as well as level of financial development. Effective policy framework in terms of remittances utilization is important in order to offset the negative consequences caused by the financial inflows.

We applied asymmetric cointegration approachtoinvestigate the impacts of stock prices on exchange... more We applied asymmetric cointegration approachtoinvestigate the impacts of stock prices on exchange rates in South Africa using monthly data from January 1980 to May 2014. The empirical finding shows that the two macroeconomic variables are cointegrated using traditional Engle-Granger approach. While TAR model shows no element of cointegration, MTAR model revealsthat there is long-run relationshipbetween the variables and they are asymmetrically cointegrated as signifies by both F-equality and F-joint respectively. Using Enders & Siklos (2001) table we reject null hypothesis of no cointegration at 5% significance level. This means that stock prices influences exchange rates in South Africa and the speed of adjustment is non-linear, when share price changes exchange rates equally changes but not in the same proportion with that of share prices. The policy implication is that the authorities in this country should focus more on stabilizing their exchange rates in relation to other major global currencies more especially American dollar. When the value of Rand continues to increase the economy will be less competitive internationally at the same time the value of the stocks might be unattractive even to international investors.

The present article used a monthly data and applied Enders and Siklos (2001) asymmetric cointegra... more The present article used a monthly data and applied Enders and Siklos (2001) asymmetric cointegration analysis to examine the impact of exchange rates on stock prices in Malaysia for the period of 1999-2014. The result suggests that variables were cointegrated based on Engle-granger two step technique. Moving to threshold auto regressive (TAR) and momentumthreshold auto regressive (M-TAR) the finding reveals that based on the latter variables were asymmetrically cointegrated as null hypothesis of no cointegration was rejected at 1% significance level based on Enders and Siklos (2001), while the former shows that variables do not have long-run relationship and the speed of adjustment is symmetric. This signifies that increase in the prices of shares in Malaysian stock market could lead to Malaysian Ringgit appreciation over other major global currencies. The stocks will become more expensive and discourage foreign investors’ participation in the market which inhibits the influx of stable foreign capital into Malaysian financial system. The implication is that regulators should ensure that adequate and efficient policies are put in place in order to keep the Ringgit exchange rates at optimal level so as to enhance the participation of foreign investors and improve market competitiveness.

The present study examined the impact of migrant workers’ remittance on child labour predominance... more The present study examined the impact of migrant workers’ remittance on child labour predominance in developing countries. We intend to see whether financial inflows sent by migrant workers to their home countries could reduce the child labour threats in the countries under investigation using system-GMM approach. The result reveals that inflow of remittances reduce child labour prevalence in the sample countries, which means financial resources sent by the migrant workers improve the level of schooling as additional sources of income for the parents and hence they will send their children to schools rather than engaging them in under aged works. The implication is that authorities in these countries should formulate policies that will help in efficient utilization of remittances that will boost their investment drives as well as enhance educational level which will improve the skill human capital in the long-run and reduce child labouring which is a harmful to the overall economic growth and development.

Thepresent article investigated whether financial inflows received from foreign investors into th... more Thepresent article investigated whether financial inflows received from
foreign investors into the Nigerian economy is an addition or subtraction
to the growth and development of the African giant economy. The
outcome shows that variables were cointegrated as the null hypothesis was
rejected at 1% level of significance. The main finding shows that foreign
direct investment does not have any significant impact on economic
growth of Nigeria for the period under review, trade openness also
exhibited same trend and the sign for the two variables is negative albeit
insignificant. Real GDP per-capita significantly and positively affects
economic growth in Nigeria. The implication is that policy makers in
Nigeria need to come up with good policy frameworks that will attract
profitable foreign investment as well as deal with the present insecurity
which if not squarely resolved will be extremely difficult for the economy
to feel the real impacts of FDI.

Using ARDL bound test approach for the period of 1971-2010 the present article examined the links... more Using ARDL bound test approach for the period of 1971-2010 the present article examined the links between financial development, energy consumption, trade openness, economic growth and 〖CO〗_2 emissions in Nigeria. The result reveals that variables were cointegrated as null hypothesis was rejected at 5% level of significance. Furthermore based on short run dynamics, financial development, economic growth and energy consumption have positive significant impact on 〖CO〗_2 emissions, while trade openness have negative insignificant impact on 〖CO〗_2 emissions. In the long-run however, the finding proved that financial development, economic growth and energy consumption have positive and significant influence on 〖CO〗_2 emissions, while trade openness has negative significant impact on 〖CO〗_2 emissions in Nigeria. The policy implication is that Nigerian public authority should focus more on initiating environmentally friendly policies that can reduce carbon emissions and explore other alternative sources of energy considering its movement with the financial sector performance. Proper trade liberalization policies should be put in place considering its roles in reducing carbon emissions that will improve environmental quality in the country.

Using autoregressive distributed lag bound test framework, the dynamics of financial development,... more Using autoregressive distributed lag bound test framework, the dynamics of financial development, economic growth, energy prices and energy consumption was investigated in Nigeria for the period of 1972Q1-2011Q4. The finding signifies that variables were cointegrated as null hypothesis was rejected at 1% level of significance. In the short-run financial development has significant negative impact on fossil fuel consumption, economic growth also shows the same relationship. However, energy prices have positive and significant influence on the consumption of fossil fuel. In the long-run however, financial development has insignificant negative impact on energy consumption, and economic growth has negative but significant impact on energy consumption, while energy prices has positive and significant impact on fossil fuel consumption. The policy recommendation remains that Nigerian authority should try to explore other alternative sources of energy in order to curb the adverse effect of fossil fuel consumption on the financial market and overall economic growth. Exploring the potentials of green energy is paramount in Nigeria which is more eco-friendly and contain less carbon emissions.

Using monthly data from January, 1980 to July 2013, the aim of the article is to find out whether... more Using monthly data from January, 1980 to July 2013, the aim of the article is to find out whether there is cointegrating relationship between the two macroeconomic variables of Exchange rates and Crude oil prices in India. The result indicates that there exists cointegration between the variables and speed of adjustment shows symmetric based on TAR model, while MTAR model exhibit asymmetric adjustment. The findings indicated that exchange rates have significant influence on Crude oil prices in India but the adjustment to equilibrium when variables deviated is non-linear. The implication is that Indian policy makers should focus more on their exchange rates dynamics in line with the persistent rises of crude oil prices that affects other macroeconomic variables.

We estimated the relationship between the exchange rates and crude oil prices for the period of 1... more We estimated the relationship between the exchange rates and crude oil prices for the period of 1960 to 2013.
Based on Engle-Granger we found that the variables are cointegrated means there exist long-run relationship.
However, when we move on to TAR and MTAR models the findings are opposite as there is no element of
cointegration and the speed of adjustment is symmetric. This shows that based on TAR and MTAR models the
effects of exchange rates on crude oil prices is insignificant. The policy relevance is that South African authority
need to monitor its exchange rates persistently related to other currencies more especially American dollar
because it determined the crude oil prices that might have greater influences on other macroeconomic variables

Drafts by Hamisu Sadi Ali, Ph.D

This study examined the dynamic impact of institutional quality on financial inclusion during 200... more This study examined the dynamic impact of institutional quality on financial inclusion during 2004-2010 across 52 developing countries. We applied dynamic panel generalized of moments (GMM) technique and found that, institutional quality promotes both access and uses of formal financial services in developing countries. Furthermore, the result shows that, economic growth and financial openness positively and significantly influence financial inclusion in the countries under investigation. The result of this study further signifies that, 1% increases in institutional quality, economic growth and financial openness will upsurge financial inclusion by 0.080%, 0.495% and 0.054% respectively. Effective government, political stability and absence of violence as well as regulatory quality could be a good instruments that may promote both uses and access to formal financial products provided by the mainstream financial institutions. The policy recommendations remain that, for these countries to achieve higher level of financial inclusion, institutions should be strengthen considering its direct impact on enhancing financial inclusion. Achieving high level of financial inclusion is among the best strategy to combat excessive poverty that disturbs the global economy, more specifically developing countries.

Using monthly data from January, 1980 to July 2013, the aim of the article is to find out whether... more Using monthly data from January, 1980 to July 2013, the aim of the article is to find out whether there is cointegrating relationship between the two macroeconomic variables of Exchange rates and Crude oil prices in India. The result indicates that there exists cointegration between the variables and speed of adjustment shows symmetric based on TAR model, while MTAR model exhibit asymmetric adjustment. The findings indicated that exchange rates have significant influence on Crude oil prices in India but the adjustment to equilibrium when variables deviated is non-linear. The implication is that Indian policy makers should focus more on their exchange rates dynamics in line with the persistent rises of crude oil prices that affects other macroeconomic variables.