Abdalla Sirag

Does environmental Kuznets curve hypothesis exist? Evidence from dynamic panel threshold

ABSTRACT Carbon dioxide (CO2) emissions have been rising globally and have raised public concern regarding their detrimental effects to human life. This article investigates the validity of the Environmental Kuznets Curve (EKC) hypothesis in developing countries in a nonlinear framework. The article applies the dynamic panel threshold method, which is able to estimate the EKC turning point. The main findings reveal the existence of a nonlinear relationship between income (GDP per capita) and carbon dioxide emissions. Precisely, for developing countries (low and middle income) the results reveal that GDP per capita is positive and significantly related to CO2 emissions, below and above the threshold. These results challenge the validity of the EKC hypothesis in developing countries, suggesting that developing countries are still below the desired income turning point, at which better economic development will lead to reduced environmental damage. Based on the study findings, it may be inappropriate for the policymakers in developing countries to adopt the EKC postulate as the theoretical basis for policies favouring economic growth.

Religious Oppression: Government Regulations and Social Hostilities

Religious intolerance has become a common feature of many countries in recent times. Studies have revealed a worldwide increase in government regulations and social hostilities against religious beliefs and practices. The stifling impact of both government and society on the market for religion, warrants closer scrutiny. This study examines the relationship between government regulations and social hostilities towards religious beliefs and practices, for the period of 2001-2011 for a sample of 45 European countries. The Generalized Method of Moments dynamic panel estimation technique is employed to analyze the micro panel dataset of 45 European countries, to establish the possible relationships that may exist between these variables. The theoretical framework for this study is based on the Religious Economies Theory and the Supply Side Theory of Religion. The results of this study show evidence of the positive relationship between government regulations and social hostility. Interestingly, the study also revealed that the impact of social hostility on the level of government restrictions is smaller in magnitude compared to the reverse impact of government restrictions on social hostilities, indicating the dangerous role played by governments in inciting social hostilities, when they regulate or restrict religious beliefs and practices.

Asymmetric Exchange Rate Pass-through in Sudan: Does Inflation React Differently during Periods of Currency Depreciation?

Using the nonlinear autoregressive distributed lags model, we confirm that the response of consumer prices to the changes in the exchange rate is asymmetric in the short and long run. The analysis reveals that moderate inflation is associated with currency depreciation while no material effect is observed during appreciation in the short run. In the long run, depreciation is passed through to consumer prices rather than appreciation. We find that 10 per cent depreciation in the Sudanese pound leads to approximately an eight percentage point increase in consumer price levels. The result — inflation in Sudan is largely driven by sharp depreciation episodes — suggests the need to mitigate the disruptive effects of sharp depreciations. We find that the impact of oil price shocks on domestic inflation is insignificant, a finding that is consistent with the recent international evidence.