This study argues that the ease at which economic agents have access to foreign earnings would influence/increase the level of dollarization in the economy. The three sources of foreign currency earnings are financial integration, trade openness and natural resource rent. As such, we extend the...

This study examines the safe haven prowess of gold against some exogenous shocks due to the COVID-19 pandemic. We further make a comparison of our findings with those obtained for the period before it. Our results confirm the potential of gold market to serve as a safe haven during the pandemic...

This article examines the hedging effectiveness of U.S. stocks against uncertainties due to equity market (financial risk) and pandemics (health risk), including Covid-19 pandemic. Consequently, we consider two categories of U.S. stocks—defensive and non-defensive stocks drawn from 10...

This study analyses the convergence of CO2 emissions at state-level in the USA for the period from 1976 to 2014 in a nonlinear and novel empirical framework. In so doing, we have applied Pesaran’s (2007) test of pair-wise approach to testing convergence which gives in general what are the...

This study applies portfolio balance theory in forecasting exchange rate. The study further argues for the need to account for the role of Global Financial Cycle (GFCy). As such, the first stage of the analysis is estimate a GFCy model and obtain the idiosyncratic shock. Next, we use the results...

The exchange rate disconnect puzzle argues that macroeconomic fundamentals are not able to accurately predict exchange rate. Recent studies have shown that the puzzle could be upturned if: (a) the dataset is structured in a panel form; (b) the model is based on the portfolio balance theory...

This study examines the role of asymmetry and breaks in oil price–output growth volatility nexus. A representative of 10 countries was selected from net oil-exporting and-importing economies for the period 1986–2017. It is hypothesised that countries respond differently to changes in oil...

There has been an increasing wave of globalization since the turn of the millennium. This study focuses on two by-products of globalization: dollarization and tourism. Empirical studies have ignored the possible relationship between dollarization and tourism. However, we hypothesize that a...

This study explores the role of the information and communication technology (ICT) and financial development (FD) in both carbon emissions and economic growth for the G7 countries for the period 1990 to 2014. Using PMG, we found that the ICT has a long-run positive effect on emissions, while FD...

This study contributes to the dollarization literature by expanding its determinants to account for different dimensions of globalization, using the widely employed KOF index of globalization. Specifically, globalization is “unbundled” into three different layers namely: economic, social and...