Suchergebnisse

Purpose
The literature studying the effect of democratic political systems on financial development has found conflicting results. Besides, recent work has focused on the level effects of democracy on financial outcomes showing evidence of positive, negative and no direct impact. This paper aims to investigate the dynamic effects of democratic transition on financial development, namely, short run and long run effects.


Design/methodology/approach
The author wants to see whether financial development improves after a transition to a democratic system and, if it does, for how long. Using a panel data set of 48 events of democratic transitions, the paper relies on an event study and on the estimation of dynamic panel after controlling for other potential determinants.


Findings
The author finds that transition to a democratic system raises the development of the financial sector. Particularly, these positive effects occurred in the long run, i.e. about 5 years following the democratic transition. However, in the short run, the author finds that the move to democracy does not impact financial outcomes.


Originality/value
The author contributes by studying the role of political system change on financial development finding that democratic transition increases the development of the financial system. Further, the author contributes by finding that the move to democracy produces positive effect only in the long term.

AbstractThe Russia-Ukraine war and other similar conflicts across the globe have heightened risks to the United States of America's (USA's) energy security. However, little is known about the severity of the effect of energy security risks on the USA's quest to attain net-zero emissions targets by 2050. To this end, we examine the effect of energy security risks on the load capacity factor (LCF) in the USA. Employing a time series dataset spinning from 1970 to 2018, the results of the Dynamic Autoregressive Distributed Lag (ARDL) simulations model suggest that energy security-related risk hampers the long-term net-zero emissions targets with its effect decreasing over time until it varnishes in about 5 years time. The results also show that foreign direct investment (FDI) inflows, renewable energy consumption, and green technology have long- and short-run positive effects on the LCF. Conversely, economic expansion and urbanization impede environmental quality by lowering the LCF both in the long run and short run. These findings are upheld by the outcomes of the multivariate quantile-on-quantile regression. Therefore, the study advocates for the consumption of renewable energy, investment in green technologies, and FDI inflows to mitigate energy security-related risks and attain the net-zero emissions targets by 2050 in the USA.