This paper examines the impact of the Monetary Policy Uncertainty (MPU) of the United States on Asian developed, emerging, and frontier stock markets using a Quantile-on-Quantile (QQR) approach by using monthly data from January 2006 to December 2022 of 14 Asian countries. The study finds that US monetary policy significantly negatively influences Asian stock markets. This is primarily due to the widespread use of the US dollar as a universal currency, resulting in substantial ripple effects on other nations through trade relationships. In Asian developed markets, MPU is negatively related to Australia and New Zealand. At the same time, it has a positive relationship with Hong Kong and Japan at the upper quantiles. Among Asian emerging markets, MPU negatively impacts Taiwan's, India's, and China's returns, increasing this negative relationship at higher MPU quantiles. Additionally, MPU has a significant negative relationship with Thailand, Indonesia, Korea, and Malaysia returns. In contrast, higher quantiles of MPU have no discernible impact on the Philippines stock returns. In Asian frontier markets, MPU negatively impacts Pakistan's and Sri Lanka's returns. The implications of these findings are twofold: for investors, this study provides valuable insights for hedging activities, allowing for more informed decisions based on the MPU of other countries to identify profitable stocks. For policymakers, this research aids in formulating effective monetary policy strategies. Furthermore, future studies can build upon these results by exploring other markets and comparing their outcomes with the findings presented in this study.
Considering how crucial environmental quality is to development, production often takes precedence over the development process when certain macroeconomic policies are being implemented. This phenomenon has been the subject of several studies conducted in various regions and nations. In this context, the recent article explores the nonlinear effects of industrial output, renewable energy, technological innovations, energy efficiency, and urbanization on CO2 emissions in the top ten industrialized countries. It recommends contradictory policy approaches due to its reported conflicting outcomes, opening up new research directions. To this end, the study relies on advanced econometric tools such as panel QARDL (Quantile Autoregressive Distributed Lag) and the nonparametric quantile Granger causality (NPQGC) test to attain robust results. The findings suggest that industrial output and urbanization significantly deteriorate environmental quality by increasing CO2 emissions across various time horizons. However, renewable energy, technological innovations, and energy efficiency have a significant influence towards enhancing environmental quality. Notably, industrialization and urbanization become environmentally friendly when energy efficiency is integrated with these variables. Additionally, the NPQGC test supports the main results by confirming the Granger causality between the modelled series. Based on the outcomes, the study suggests that the integration of energy efficiency with industrialization and urbanization can significantly contribute to achieving a sustainable environment.