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

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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.

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Acknowledgements

The authors are grateful to the anonymous referees of the journal for their extremely useful suggestions to improve the quality of the article. Usual disclaimers apply.

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  1. Faculty of Economics and Law, University of Finance-Marketing, Ho Chi Minh City, Vietnam

    Ngo Thai Hung

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Hung, N.T. Time–frequency nexus between globalization, financial development, natural resources and carbon emissions in Vietnam. Econ Change Restruct 55, 2293–2315 (2022). https://doi.org/10.1007/s10644-022-09391-7

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