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Time–frequency nexus between globalization, financial development, natural resources and carbon emissions in Vietnam

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  • Ngo Thai Hung

    (University of Finance-Marketing)

Abstract

Economic covariates exhibit asymmetric and time-varying patterns in the real world. As a result, it is critical to consider these effects when estimating environmental and economic relationships. This study examines the time–frequency nexus between globalization, natural resources, financial development, and carbon dioxide emissions in Vietnam. Wavelet coherence and cross-wavelet transform techniques are introduced to evaluate the lead–lag nexus between CO2 emissions and the selected series. The wavelet-based Granger causality framework is utilized to quantify causal associations in time–frequency space. The empirical findings uncover that the significant causal associations between CO2 emissions, natural resources, financial development, and globalization are mainly concentrated in the short and medium run during the sample period. Furthermore, there exists a negative connection between carbon emissions and the selected series in the long run, suggesting that a decrease in CO2 emissions predicts negative financial development, natural resources, and globalization indicators in Vietnam. These results have significant policy implications for developing long-run sustainable policies. Environmental researchers should take into account lead-lag channels of transmission and the time–frequency nexus between series.

Suggested Citation

  • Ngo Thai Hung, 2022. "Time–frequency nexus between globalization, financial development, natural resources and carbon emissions in Vietnam," Economic Change and Restructuring, Springer, vol. 55(4), pages 2293-2315, November.
    • Handle: RePEc:kap:ecopln:v:55:y:2022:i:4:d:10.1007_s10644-022-09391-7
    DOI: 10.1007/s10644-022-09391-7
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    More about this item

    Keywords

    Financial development; Natural resources; Globalization; Carbon emissions; Wavelet analysis; Vietnam;
    All these keywords.

    JEL classification:

    • Q5 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics
    • C5 - Mathematical and Quantitative Methods - - Econometric Modeling

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