Purpose: It is widely argued that money laundering (ML) is not a new phenomenon and the pervasiveness of ML is associated with some severe economic, social and political costs. Due to the lack of studies on the MLs issue in the UAE, this study aims to examine the determinants of ML in the country between 1975 and 2020. Design/methodology/approach: The autoregressive distributed lag bounds testing results demonstrate the presence of long-run relationship between ML and the selected macroeconomics variables. The analysis is validated by the dynamic ordinary least squares, the fully modified ordinary least squares and the canonical co-integration regression estimators. Findings: The estimation result reveals that while the real estate market, outflow of money, arms procurement and size of the underground economy influences the size of ML positively, gold trade, the level of financial development and the size of economic activities are negatively associated with ML, both in the short- and .....

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The main objective of this study is to investigate the factors that affect the Malaysian industrial production sector (IPS) by using the ARDL bounds testing methodology. The analysis is conducted by applying the time series data for the 19702020 period. From the ARDL results, all variables significantly influence Malaysian IPS in different manners for both periods; long and short runs, except the financial development (FD) variable, which insignificantly in-fluences IPS. This final result was verified by the ECM estimate, indicating the presence of long-and short-run relationships between IPS and its factors. Although the FD sector does not directly play a significant factor in stimulating Malaysian IPS growth, policymakers must revise their policies to enhance the role of the financial and banking sector in strengthening the IPS performance in the country. This revision can be done by running good financial services to fund and motivate investors to construct new IPS schemes and then .....

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This study estimates the threshold level of the relationship between fiscal deficit and public expenditure in the United Arab Emirates (UAE) based on the public expenditure Kuznets curve (PEKC) hypothesis during the 1975-2020 period. Employing the autoregressive distributed lag (ARDL) bound testing approach, the results indicate the existence of an inverted U-shaped PECK. In other words, public expenditure-fiscal deficit relationship exhibits an inverted U-shaped in the long-run, feature with public expenditure ex-panding in the early phases of rising fiscal deficit, and falling in the latter phases. Using the quadratic specification, the threshold of 22.45 percent is obtained for fiscal deficit (as a share of the GDP), and Dh. 6.583 billion for public expenditure. Moreover, the results illustrate that oil price, outflow of money, FDI outflow and interest rate are other important determinants of public expenditure in the country. Based on this evidence, policies aimed at reducing fisca.....

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Purpose: Despite the vulnerability of rapidly developing and emerging market economies, researchers have paid less attention to the determination of the size of money laundering (ML) in these economies, including the United Arab Emirates (the UAE). Therefore, this paper aims to estimate the magnitude of ML in the UAE between 1975 and 2020 based on the currency demand approach (CDA). Design/methodology/approach: The study uses the Gregory–Hansen cointegration technique alongside the autoregressive distributed lag bounds testing procedure to estimate the CDA model. Findings: The results illustrate that an amount equivalent to about 19.034% of the GDP is laundered in the UAE between 1975 and 2020, on average, with the value lying between 15.129% and 23.121%. In addition, the results demonstrate the importance of the real estate market, gold trade, remittance channels and the size of the underground economy in facilitating the laundering of illicit funds in the country. Originality/value.....

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Purpose: Despite the huge financial resources associated with oil, Nigeria has consistently recorded poor growth performance. Therefore, this study aims to examine how corruption and oil rent influence Nigeria’s economic performance during the 1996–2021 period. Design/methodology/approach: Various estimation techniques were used. These include the bootstrap autoregressive distributed lag (ARDL) bounds-testing, dynamic ordinary least squares (DOLS), the fully modified OLS (FMOLS) and the canonical cointegration regression (CCR) estimators and the Toda–Yamamoto causality. Findings: The bounds testing results provide evidence of a cointegrating relationship between the variables. In addition, the results of the ARDL, DOLS, CCR and FMOLS estimators demonstrate that oil rent and corruption have a significant positive impact on growth. Further, the results indicate that human capital and financial development enhance economic growth, whereas domestic investment and unemployment rates s.....

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This study examines the asymmetric effect of shadow economy on environmental pollution in Egypt during the 1970 and 2022 period. Using the bootstrap nonlinear autoregressive distributed lag (NARDL) bounds-testing approach, the study presents evidence of nonlinear cointegrating relationship between environmental degradation (carbon emission) and shadow economic activities (alongside globalisation, urbanisation, GDP per capita, and industrial growth). In addition, the results demonstrate that the impact of shadow economy (SE) on environmental pollution (ENV) is nonlinear, with the positive shock in shadow economy promoting environmental degradation and negative shocks promoting environmental quality, both in the short-and long-run. However, the study discovered that the magnitude of the impact of the SE on ENV is larger in the short-run. This is further validated by the dynamic ARDL simulation technique which demonstrates that the immediate effect of the SE on ENV is large. Additionally,.....

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The aim of this study is to provide a comprehensive overview of published scientific documents in the fields of financial development and economic growth from 1986 to 2024. To this end, bibliometric analysis using the VOSviewer and CiteSpace tools was conducted on 2484 documents from the Scopus database. The objectives were to identify and evaluate document descriptions; the most prolific journals, authors and countries; keywords co-occurrence; major clustering and evolution; patterns of collaboration among the countries; and burst detection analyses for journals, keywords, authors, and countries. The results show that most often, keywords that appear gradually towards the end are related to clean energy, environment, green economy, sustainable development and growth issues from 2018 until recent years. This finding suggests that the fields of interest that are complementary to energy, environment, and sustainable growth issues will continue to become fast-growing topics of study in th.....

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Purpose: It is widely argued that money laundering (ML) is not a new phenomenon and the pervasiveness of ML is associated with some severe economic, social and political costs. Due to the lack of studies on the ML’s issue in the UAE, this study aims to examine the determinants of ML in the country between 1975 and 2020. Design/methodology/approach: The autoregressive distributed lag bounds testing results demonstrate the presence of long-run relationship between ML and the selected macroeconomics variables. The analysis is validated by the dynamic ordinary least squares, the fully modified ordinary least squares and the canonical co-integration regression estimators. Findings: The estimation result reveals that while the real estate market, outflow of money, arms procurement and size of the underground economy influences the size of ML positively, gold trade, the level of financial development and the size of economic activities are negatively associated with ML, both in the short- a.....

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This paper aims to address those methodological issues by exclusively applying the newest modification to the Money Demand Model (MDM) in the form of the autoregressive distributed lag (ARDL) approach to estimate the Malaysian shadow economy (SE) from 1985 to 2020. Methodological errors and spurious regression issues hindered earlier studies on the Malaysian SE. Some studies included Malaysia in their analyses alongside other Asian countries with similar levels of development, without accounting for the distinct economic environments of these countries. This study accounts for the influence of economic uncertainty (EU) and structural breaks. The study finds that Malaysia's SE averaged 40.8% of its official gross domestic product (GDP), peaking in 1995–1996, after which it gradually declined and stabilized around 39.4% of GDP. This substantial size highlights the critical need for tailored economic policies to manage SE growth effectively. The findings not only provide a clearer under.....

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We employ dynamic heterogeneous panel estimation techniques which include Dynamic Fixed Effects, Mean Group, and Pooled Mean Group estimators to explore the underground economy (UE) and financial inclusion (FI) relation for ten West African nations during the 2004–2021 period. Applying Pedroni cointegration test, the results present evidence of a long-term relation between UE and FI (alongside corruption, inflation rate, money supply, agricultural output, and trade). The results of panel estimation portray a long-term significant positive influence of FI on UE, but a short-term significant negative relation between FI and UE. In addition, corruption, money supply, and international trade have a long-term significant negative influence on UE, while inflation supports long-term expansion of UE. Also, a short-term significant negative relation exists between inflation (and trade) and UE, while a short-term significant positive relation is found between money supply and UE. The results o.....

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