ISSN 2394-5125
 

Review Article 


THE EFFECTS OF ENVIRONMENTAL QUALITY, TRADE OPENNESS, AND ECONOMIC GROWTH ON FINANCIAL DEVELOPMENT IN ALGERIA: A DIKS AND PANCHENKO APPROACH.

Ibrahim Sambo Farouq, Zunaidah Sulong, Nuraddeen Umar Sambo.

Abstract
The current paper's purpose is to examine the effect of economic growth on Algeria's financial development and the position of trade openness. The paper uses evidence from the time series spanning 1970 to 2018. Gregory and Hansen (1996) co-integration approach, Non-linear ARDL as the elasticity estimator, and Diks and Panchenko (2006) have been applied to the causality test. The outcome of co-integration indicates a long-term relationship between variables. Moreover, the findings confirm that financial development asymmetry related to economic growth. The analysis further reveals the presence of non-linear unidirectional causality between economic growth and financial performance. Besides, the result shows that financial development contributes to environmental degradation in Algeria. It also documents a one-way causal link between trade openness that leads to financial development. It suggests that there exists an overall positive and significant effect of economic growth and trade openness on financial development. The current study advises that an increase in the performance of the real sector and the more openness to trade as it will result in a beneficial spillover effect on the growth of the Algerian financial sector.

Key words: Diks, and Panchenko, Asymmetry ARDL, Gregory Hansen, Financial Development.


 
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How to Cite this Article
Pubmed Style

Ibrahim Sambo Farouq, Zunaidah Sulong, Nuraddeen Umar Sambo. THE EFFECTS OF ENVIRONMENTAL QUALITY, TRADE OPENNESS, AND ECONOMIC GROWTH ON FINANCIAL DEVELOPMENT IN ALGERIA: A DIKS AND PANCHENKO APPROACH.. JCR. 2020; 7(5): 545-554. doi:10.31838/jcr.07.05.114


Web Style

Ibrahim Sambo Farouq, Zunaidah Sulong, Nuraddeen Umar Sambo. THE EFFECTS OF ENVIRONMENTAL QUALITY, TRADE OPENNESS, AND ECONOMIC GROWTH ON FINANCIAL DEVELOPMENT IN ALGERIA: A DIKS AND PANCHENKO APPROACH.. http://www.jcreview.com/?mno=98505 [Access: August 16, 2021]. doi:10.31838/jcr.07.05.114


AMA (American Medical Association) Style

Ibrahim Sambo Farouq, Zunaidah Sulong, Nuraddeen Umar Sambo. THE EFFECTS OF ENVIRONMENTAL QUALITY, TRADE OPENNESS, AND ECONOMIC GROWTH ON FINANCIAL DEVELOPMENT IN ALGERIA: A DIKS AND PANCHENKO APPROACH.. JCR. 2020; 7(5): 545-554. doi:10.31838/jcr.07.05.114



Vancouver/ICMJE Style

Ibrahim Sambo Farouq, Zunaidah Sulong, Nuraddeen Umar Sambo. THE EFFECTS OF ENVIRONMENTAL QUALITY, TRADE OPENNESS, AND ECONOMIC GROWTH ON FINANCIAL DEVELOPMENT IN ALGERIA: A DIKS AND PANCHENKO APPROACH.. JCR. (2020), [cited August 16, 2021]; 7(5): 545-554. doi:10.31838/jcr.07.05.114



Harvard Style

Ibrahim Sambo Farouq, Zunaidah Sulong, Nuraddeen Umar Sambo (2020) THE EFFECTS OF ENVIRONMENTAL QUALITY, TRADE OPENNESS, AND ECONOMIC GROWTH ON FINANCIAL DEVELOPMENT IN ALGERIA: A DIKS AND PANCHENKO APPROACH.. JCR, 7 (5), 545-554. doi:10.31838/jcr.07.05.114



Turabian Style

Ibrahim Sambo Farouq, Zunaidah Sulong, Nuraddeen Umar Sambo. 2020. THE EFFECTS OF ENVIRONMENTAL QUALITY, TRADE OPENNESS, AND ECONOMIC GROWTH ON FINANCIAL DEVELOPMENT IN ALGERIA: A DIKS AND PANCHENKO APPROACH.. Journal of Critical Reviews, 7 (5), 545-554. doi:10.31838/jcr.07.05.114



Chicago Style

Ibrahim Sambo Farouq, Zunaidah Sulong, Nuraddeen Umar Sambo. "THE EFFECTS OF ENVIRONMENTAL QUALITY, TRADE OPENNESS, AND ECONOMIC GROWTH ON FINANCIAL DEVELOPMENT IN ALGERIA: A DIKS AND PANCHENKO APPROACH.." Journal of Critical Reviews 7 (2020), 545-554. doi:10.31838/jcr.07.05.114



MLA (The Modern Language Association) Style

Ibrahim Sambo Farouq, Zunaidah Sulong, Nuraddeen Umar Sambo. "THE EFFECTS OF ENVIRONMENTAL QUALITY, TRADE OPENNESS, AND ECONOMIC GROWTH ON FINANCIAL DEVELOPMENT IN ALGERIA: A DIKS AND PANCHENKO APPROACH.." Journal of Critical Reviews 7.5 (2020), 545-554. Print. doi:10.31838/jcr.07.05.114



APA (American Psychological Association) Style

Ibrahim Sambo Farouq, Zunaidah Sulong, Nuraddeen Umar Sambo (2020) THE EFFECTS OF ENVIRONMENTAL QUALITY, TRADE OPENNESS, AND ECONOMIC GROWTH ON FINANCIAL DEVELOPMENT IN ALGERIA: A DIKS AND PANCHENKO APPROACH.. Journal of Critical Reviews, 7 (5), 545-554. doi:10.31838/jcr.07.05.114