John Inekwe

• PhD
• Professor (Assistant) at Macquarie University

We examine the relationship between human capital and energy consumption in the United Kingdom employing time series data dating back to the mid-sixteenth century. We first employ traditional parametric techniques, such as cointegration tests and autoregressive distributed lag models, to examine the long and short-run effects. The findings suggest...

This study examines global convergence of COVID-19. The club cluster algorithm is used to verify the convergence patterns of infection and death rates. The findings show that full-panel convergence cannot be achieved indicating the presence of sub-convergent clusters. Cluster formation for death rates includes the Americas, Africa, the Middle East,...

This study examines the interplay between transport infrastructure, CO2 emissions, and health outcomes. The study focuses on economies in the Global South from 2006 to 2016 periods. To achieve the study's aims, CO2-induced health outcomes are generated, and the effects of transport infrastructure on CO2-induced life expectancy and mortality are ass...

The postpartum period is a challenging transition period with almost one in ten mothers experiencing depression after childbirth. Perceived social support is associated with mental health. Yet empirical evidence regarding the causal effects of social support on postpartum mental health remains scarce. In this paper, we used a nationally representat...

In this study, we examine the financial development effect of population aging pattern in India. We examine the period 1960 to 2017 and analyse the various types of age dependency, which includes both old and young measures. By using structural VAR and ARDL techniques, we find that changes in young age dependency have a significant impact on change...

We present evidence on breaks, stationarity, trends, dynamic correlations, and cycles in prices for eight agricultural and industrial commodities over seven centuries. We utilise a sequential testing procedure that endogenously determines structural changes in the trend and level of each series. We find that breaks in the slope and the trend functi...

We relate risk in the African financial system to its long‐run economic performance under structural changes and cross‐sectional dependence. To achieve this objective, we generate risk indexes from several measures of financial soundness. We find a long‐run relationship between financial risk factors and economic performance indicators. Financial r...

This study computes banking risk indexes for European developing countries and analyses the impact of identified risk factors on economic growth across regions and cities. We examine the short-run and long-run behaviours of the series. The results reveal that real gross domestic product (RGDP) per capita co-moves with banking risk. We find that abo...

In the research, we analyse the non-linear relationship between energy poverty and its determinants across the ASEAN+6 region between 1980 and 2019. Two proxies are used to capture the energy poverty viz. electricity consumption and access to electricity. The effects of the regressors on energy poverty are examined with a non-parametric estimation...

We examine the time-varying effect of energy technology R&D spending (R&D) on energy consumption per capita. In doing so, we utilise a data-driven local linear dummy variable estimation (LLDVE) method, which we apply to a panel of OECD nations for the period 1980 to 2014. Our LLDVE estimates point to a time-varying and positive effect of R&D on tot...

A gap in the transportation-environment literature is the absence of studies analysing the effect of transport infrastructure on carbon dioxide (CO2) emissions, controlling for other factors correlated with CO2 emissions. We address this gap by providing parametric and non-parametric estimates of the effect of transport infrastructure on CO2 emissi...

Using a historical dataset and recent advances in non-parametric time series modelling, we investigate the nexus between tourism flows and house prices in Germany over nearly 150 years. We use time-varying non-parametric techniques given that historical data tend to exhibit abrupt changes and other forms of non-linearities. Our findings show eviden...

In this study, using an ex ante measure, we examine the convergence patterns in sovereign defaults among 101 developing countries for the period from 1990 to 2015. We employ the club convergence algorithm to determine convergence paths across countries and examine the role of institutions in shaping the observed convergence patterns. The merging of...

Financial network analysis can explain the extent of financial integration through the exploration of the lending and borrowing activities of firms in the international loan market. We contend that financial network will have a positive externality such that the acquisition of capital will have beneficial effects on entrepreneurship. Using the info...

Credit plays a significant role in the performance of the banking sector. This research relates financial integration to the credit risk of banks. We compute a measure of financial connectivity based on network statistics using syndicated loans. Using instrumental variable techniques for a panel of 39 countries over the periods of 1988 to 2014, we...

In a dynamic model, this paper characterises the interaction between macroeconomic expectation, risk aversion, and market uncertainty. From survey dispersion forecast, we capture macroeconomic expectation using monetary policy uncertainty, business outlook, and consumer confidence, while risk aversion and market uncertainty measures are derived fro...

This research analyses the non-linear and complex effects of drivers of system imbalance prices in the GB electricity market. Unlike day-ahead prices, the balancing settlement prices are comparatively under-researched, yet their importance is growing with greater market risks. The fundamental drivers of these prices are analysed over 2016-2019. The...

Using a unique historical dataset for 20 OECD economies from 1870 to 2014, we study whether human capital accumulation is associated with improvements in environmental quality via reductions in 2 emissions. Our preferred long-run point estimates, which account for cross-sectional dependence and structural breaks, suggest that advanced human capital...

We test the Environmental Kuznets Curves (EKC) hypothesis for a panel of eight Australian states and territories using non-parametric panel estimation over the period 1990 to 2016. A feature of our non-parametric estimation method is that it allows carbon dioxide (CO2) emissions to evolve over time in the form of an unknown functional form with con...

We replicate, and extend, Zerbo and Darné’s (2019) study examining the stationarity properties of per capita carbon dioxide (CO2) emissions in the OECD from 1960 to 2014. We first replicate by reproduction their main findings for 25 OECD countries by applying their methods over the same time period that they consider. We then extend the analysis to...

Research and development (R&D) activity has been widely cited as one of the key drivers of economic growth over several decades. This research note employs the Phillips and Sul (Econometrica 75(6):1771–1855, 2007; Econometrics 24(7):1153–1185, 2009) methodology to test for the convergence of R&D intensity across OECD countries spanning 145 years. W...

Using firm-level loan contracts, we generate aggregate measures of financial connections and examine how these indices relate to income inequality in sub-Saharan African (SSA) countries. The results reveal that more connectedness is not beneficial for these economies as shown by the degree and the eigenvector indices. Betweenness centrality worsens...

We generate measures of banking risk across Indian states and examine the relationship between banking risk and economic production in India. We find that banking risk co-moves with total grain production (TPG) and real gross domestic product (RGDP). The long-term impact of banking risk differs across Indian states. Ten states are negatively affect...

The paper examines the transmission of liquidity shocks across a panel of countries and explores the power of liquidity spillovers in generating output synchronisation. Using the information on stocks, we generate aggregate stock liquidity indices in 24 countries. From the error variance decomposition, we find that countries transmit liquidity shoc...

The mitigation of CO2 emissions requires a global effort with common but differentiated responsibilities. In this paper, we identify clusters of CO2 emissions across 72 countries. First, using the stochastic version of the IPAT and employing the dynamic common correlated effects technique, we identify three key determinants affecting CO2 emissions...

This paper investigates stochastic convergence in income inequality across Australian states and territories since the end of World War II by utilising the LM and RALS-LM unit root tests that allow for endogenously determined structural breaks. We find that income inequality for Australia’s capital city – the Australain Capital Territoy – converges...

We employ the recently developed LM and RALS-LM unit root tests that allow for endogenously determined structural breaks to study stochastic convergence in relative per capita CO2 emissions over the period 1921 to 2014 for a balanced panel of emerging market economies. The results provide mixed evidence of the presence of stochastic convergence. In...

Understanding the dynamics of carbon emissions across time and space is important when formulating energy policies to minimise climate changes in the future. If per capita carbon emissions (or carbon intensity) converge over time, then any negotiation of multilateral agreements will be easier than if convergence is absent. It is also possible for c...

We examine the effect of human capital on energy consumption for a panel of OECD economies over the period 1965-2014. Our preferred results, which account for cross-sectional dependence and structural breaks, suggest that a one standard deviation increase in human capital reduces aggregate energy consumption by 15.36%. When we distinguish between c...

We examine the relationship between the oil price, prices of precious metals (gold, silver, and platinum) and the US dollar/British Pound exchange rate using parametric and non-parametric modelling over a 135-year period. For the parametric model, we employ a two-regime threshold vector error correction model (TVECM) and find non-linearity and asym...

The Australian government has recently launched a National Energy Productivity Plan that calls for a 40% increase in energy productivity (economic output divided by energy use) before 2030. Improving energy productivity would help boost economic competitiveness, reduce energy costs, and reduce carbon dioxide emissions in Australia. Understanding en...

We investigate the effect of financial integration on a banking crisis. In contrast to existing works, we allow for capital restrictions while studying the impact of financial integration on a banking crisis. Using firm‐level lending and borrowing information in the global market of syndicated loans; we generate aggregate measures of financial inte...

This research predicts ex-ante financial distress and analyses the link between financial distress, performance, employment, `and research and development (R&D) investment in the case of multinational companies (MNCs). The conditional logit and hazard models are employed to predict financial distress, while a conditional mixed process model is empl...

This paper relates cross-country growth in real gross domestic product (RGDP) to ex-ante financial distress. For each of the 45 countries covered in the study, we first develop country indices of ex-ante financial distress from firm-level data and then employ an autoregressive model to examine the short and long-run implications of ex-ante financia...

We examine the effect of research and development (R&D) intensity on carbon dioxide (CO2) emissions in the Group of Seven (G7) countries since the nineteenth century using a non-parametric panel data model. Our estimates suggest that the relationship between R&D and CO2 emissions is time-varying. The estimated time-varying coefficient function of R...

The study examines the determinants of financial crises. The paper applies extreme bounds analysis on a panel of countries to test the robustness of 43 variables in capturing varying financial crises. At a stricter bound and keeping the growth rate of real gross domestic product per capita constant, regulation emerges as the most indispensable fact...

The research analyses energy-mix and economic growth for G20 countries. • Cross-sectional dependence is established for heterogeneous panel. • Role of energy-mix is found to be different across countries. • Trade and research and development play a significant role. A R T I C L E I N F O Keywords: Economic output Energy-mix Heterogeneous panel FMOL...

Over a long horizon, this paper examines joint economic crises and determines the power of 49 variables in predicting such episodes. While incorporating dynamism in the prediction, we generate the predictive power of various specifications and model the uncertainty in the parameters of interest. The results reveal that growth of real gross domestic...

Carbon dioxide (CO2) emissions play an important role in global warming. Consequently, studying the relationship between CO2 emissions and economic development is important, especially when viewed from an historical perspective. We test the Environmental Kuznets Curve (EKC) hypothesis for a panel of 20 OECD nations, dating back to the first globali...

In this paper, we examine the convergence pattern of residential house prices across capital cities of Australian states. We model house prices non-linearly to allow for heterogeneity and transitional dynamics of house prices across Australia. The results obtained in this study reveal that house prices do not converge across the states. One non-con...

Using loan contracts of firms in the syndicated loan market, we generate weighted aggregate measures of financial connections of emerging market economies and relate these financial integration indices to income inequality. The results reveal that financial integration is beneficial in reducing market income inequality, but worsens net income inequ...

This article investigates the impact of global financial integration on liquidity risk. Using the network approach and bank-level data for 95 countries, we find weak asymmetry in the relationship between net stable funding and financial connectedness. Our results suggest that the degree of connectedness between banks is inversely related to funding...

The Indian government has a number of ambitious economic and energy related initiatives including increasing access to electricity (“24X7 Power for All”), greater economic activity from manufacturing (“Make in India”), and reducing carbon dioxide emissions. Energy productivity is an important factor in helping to achieve these objectives. In this p...

This study examines conditional convergence in relative per capita carbon dioxide emissions by using the recently developed Residual Augmented Least Squares-Lagrange Multiplier (RALS-LM) unit root test procedure that allows for endogenously determined structural breaks. Utilising a sample of 44 developed and developing countries dating back to the...

This study provides a dynamic characterization of the link between financial distress risk and the real economy. Using a large dataset of firm-level observations, new ex-ante measures of financial distress are developed at the sector level and used to examine growth trends in the US economy. More specifically, we develop a comprehensive set-up for...

We provide an empirical analysis of the network structure of African countries based on a unique data set from the syndicated loans market. Using dynamic panel estimation techniques, we analyse the effects of economic, political and trade integrations on finance. Our findings reveal that the network-based measures perform relatively better than the...

Remittances are the second largest source of external finance after foreign direct investment in the developing economies. In this study, we analyse the role of incoming remittances on financial development for 57 highest remittance recipient economies. A long run equilibrium relationship is established between remittances and three alternative ind...

Using 1,234 microfinance firms in 106 countries, this study investigates the determinants of default on the microcredit debt obligation of borrowers. Using the variant of extreme bounds analysis that systematically tests the fragility of coefficient estimates, we examine the importance of 42 variables in explaining default risk. At the micro level,...

The study predicts ex-ante financial distress in small and medium-sized enterprises (SMEs) and examines its significance in entrepreneurial activity. Thus, the study provides the dynamic characterization of the link between financial distress, employment and the growth in the establishment of SMEs. The study further examines employees’ welfare and...

We estimate the response of uncertainty/risk aversion to monetary policy actions in both the financial sector and the aggregate economy using a structural vector autoregressive model. When compared with other sectors, our constructs reveal that financial risk aversion/uncertainty has greater correlation with the aggregate risk aversion and uncertai...

We estimate the effects of anticipated and unanticipated monetary policy changes on jump variation by employing high-frequency nonparametric jump detection methods. We find that anticipated changes in the Fed funds have no significant effect on jumps. In contrast, jump variation in the price of financial market data increases with monetary policy s...

This study relates financial integration to credit risk of banks in a panel of countries. Over the period of study, we compute measures of financial integration for a panel of banks and examine how they relate to the credit risk of borrowing banks. The result of an instrumental variable approach reveals that banks that engage in more borrowing in t...

This paper examines the role of R&D spending on economic growth of developing economies between the periods of 2000 and 2009. The impact of R&D spending on these economies is determined by using dynamic system GMM, pooled mean group and three stage least square-GMM models. Sixty-six countries are studied and further grouped as; upper-middle-income...

The study examines the links between Nigerian economic growth, employment and foreign direct investment (FDI) in the manufacturing and servicing sectors between 1990 and 2009. The significant results of the Johansen cointegration technique and the vector error correction model reveal that FDI in the servicing sector has a positive relationship with...