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• Open Access Article

  14 Pages Download PDF: Extending Okun's Law to encompass the governance-unemployment nexus: New Insights from PMG/ARDL Approach

  Extending Okun's Law to encompass the governance-unemployment nexus: New Insights from PMG/ARDL Approach

  Muhammad Umar Farooq, Abdul Majeed Nadeem, Qasim Ali

  2025-06-29 https://doi.org/10.36923/jcmi.v6i1.636

  This study has empirically aimed at estimating the short-and long-term dynamics of financial and institutional factors with respect to the unemployment rate in the case of the selected developing economies over the period of 1996-2023. The second-generation empirical analyses, such as cross-sectional dependence and unit-root analysis, support the use of pooled mean group regression analysis. The empirical outcomes of the pooled mean group regression have confirmed the existence of Okun’s law in the influence of a rise in control of corruption, government effectiveness, and political stability to reduce the unemployment rate in this region. Among the financial factors, the economic growth-unemployment rate nexus significantly validates the existence of Okun’s law. Further, the exchange rate is also highly significant in decreasing the unemployment rate in this region. However, the negative impact of the interest rate and the positive effect of broad money growth are surprisingly significant in affecting the unemployment rate and contradict the literature. Surprisingly, the institutional factors are more responsive to the unemployment rate compared with financial indicators. These outcomes suggest important policy implications regarding institutional and financial factors to control the unemployment rate in these economies

  pp. 68-81 Abstract views:187 Downloads:273

• Open Access Article

  19 Pages Download PDF: The Role of Energy Investment in Promoting Economic Sustainability in Developing Countries: A CS-ARDL Analysis

  The Role of Energy Investment in Promoting Economic Sustainability in Developing Countries: A CS-ARDL Analysis

  Aqeel Ahmad, Tusawar Iftikhar Ahmad, Asma Sajjad, Sajjad Ali

  2025-12-30 https://doi.org/10.36923/jcmi.v6i2.673

  Energy investment plays a pivotal role in promoting economic sustainability through a reliable energy supply to support industrial production and innovation. The current work investigates the difference in energy investment and economic sustainability between 1990 and 2022 for 88 developing countries with an income classification. Using the Cross-Sectional Autoregressive Distributed Lag (CS-ARDL) methodology, the research simultaneously tests short- and long-run dynamics while explicitly modeling cross-sectional dependence. The results suggest that although labor force participation, capital formation, human capital, and foreign direct investment have positive impacts on economic sustainability across income levels, energy investment, especially when used for creating public-private partnerships, fosters economic growth in middle-income economies but has a negative correlation with low-income economies. Policy implications drawn from the findings indicate that boosting investment in the energy sector, with special focus on the use of renewable technologies in low- income countries, would be an effective strategy for promoting sustainable development.

  pp. 75-93 Abstract views:144 Downloads:90