Corruption and FDI inflow to Nigeria: a nonlinear ARDL approach

2020 ◽  
Vol 27 (2) ◽  
pp. 635-650
Author(s):  
Suleiman Zangina ◽  
Sallahuddin Hassan
Keyword(s):  
Time Series ◽  
Test Technique ◽  
Policy Makers ◽  
Content Type ◽  
Distributed Lag ◽  
Nonlinear Ardl ◽  
Autoregressive Distributed Lag ◽  
Long Run ◽  
Business Practitioners ◽  
Positive Shock

Purpose This paper aims to empirically explore the asymmetric relationship between corruption control and foreign direct investment (FDI) in Nigeria. Design/methodology/approach The study utilized the non-linear autoregressive distributed lag (NARDL) bounds test technique for the time-series analysis covering the period 1984-2017. Findings The findings reveal that corruption inhibits FDI inflow and corruption control has asymmetric effects on FDI inflow to Nigeria. The coefficient of positive shock or changes in respect of corruption control is positive as well as statistically significant during the long run, while the coefficient of negative shock is negative, but statistically insignificant. This implies that improvement in corruption control encourages inflow of FDI to the country, whereas a decrease in corruption control has an insignificant effect. Practical implications Nigeria needs to intensify its corruption control efforts to effectively enhance the conduciveness as well as attractiveness of its business operating environment for FDI inflow. Originality/value This paper is among the first to use time-series analytical process to empirically verify the asymmetric association of corruption control and FDI inflow in Nigeria. In this regard, the insight generated by outcomes of the study will enable specific inferences to be drawn from the empirical findings by policy makers, academic researchers and business practitioners.

scholarly journals Testing the productivity bias hypothesis in Middle East countries

2018 ◽  
Vol 45 (5) ◽  
pp. 922-931 ◽  
Author(s):  
Ferda Halicioglu ◽  
Natalya Ketenci
Keyword(s):  
Time Series ◽  
Saudi Arabia ◽  
Middle East ◽  
Design Methodology ◽  
Policy Makers ◽  
Content Type ◽  
Distributed Lag ◽  
Autoregressive Distributed Lag ◽  
Middle East Countries ◽  
Practical Implications

Purpose The purpose of this paper is to empirically test the validity of the productivity bias hypothesis (PBH) in 18 Middle East countries. Design/methodology/approach The paper employs autoregressive-distributed lag approach to cointegration approach and stability tests. Findings The empirical results suggest the existence of the PBH only in the case of Bahrain, Kuwait and Saudi Arabia. Practical implications Conclusions drawn from this research could be useful for the policy-makers of governments and practitioners in international trade organizations. Originality/value This study extends the existing literature by providing initial empirical time series evidence of the PBH for the entire Middle East countries.

The determinants of capital structure of Islamic and conventional banks: an autoregressive distributed lag approach

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Moncef Guizani
Keyword(s):  
Capital Structure ◽  
Price Change ◽  
Content Type ◽  
Leverage Ratio ◽  
Macroeconomic Variables ◽  
Distributed Lag ◽  
Autoregressive Distributed Lag ◽  
Long Run ◽  
Conventional Banks ◽  
The Capital Structure

Purpose This paper aims to explore how Sharia principles could impact capital structure determinants and speed of adjustment of Islamic banks (IBs) compared to conventional banks (CBs) in the Gulf Cooperation Council countries (GCC). Design/methodology/approach This study applies the autoregressive distributed lag (ARDL) approach for a sample of 69 banks listed on GCC stock markets over the period 2009–2018. Findings Regression results indicate that tangibility and bank size are positively related to book leverage of both IBs and CBs, whereas profitability, liquidity and risk are negatively related. For growth opportunities, the results show opposing effect on book leverage of IBs and CBs, regarding macroeconomic variables, the authors find that gross domestic product and financial development are negatively related to book leverage of both IBs and CBs, whereas oil price change is positively related. Moreover, the authors find that IBs slowly adjust their capital structure toward the desired leverage ratio than CBs. In sum, the capital structure of IBs appears to be driven by similar factors to those previously found in the corporate finance literature. Research limitations/implications This research contributes to the theory in re-validating capital structure theories on IBs. It helps understand the capital structure of IBs in comparison with CBs. It highlights some areas where further research on topics related to capital structure of IBs is needed. Practical implications The paper can contribute to policymakers and governance function in understanding the choice of capital structure for IBs within the bound of Sharia requirement in different economic climate through its relation with the macroeconomic variables. Practically, the directors and managers can predict the best capital structure to be achieved by IBs in ensuring their performance is at par, in their quest of additional capital. Originality/value This paper offers some insights on the determinants of capital structure by investigating IBs and CBs. It explores the implication of relevant Islamic principles on capital structure. Moreover, it analyses the determinants of capital structure using ARDL method that permits to identify the short-run and long-run relationships between capital structure and its main determinants.

FAKTOR-FAKTOR YANG MEMPENGARUHI NILAI IMPOR KEDELAI INDONESIA

2014 ◽  
Vol 8 (1) ◽  
pp. 117-138 ◽  
Author(s):  
Aziz Muslim
Keyword(s):  
Time Series ◽  
Exchange Rate ◽  
Soybean Oil ◽  
Secondary Data ◽  
Cointegration Analysis ◽  
Distributed Lag ◽  
Autoregressive Distributed Lag ◽  
Long Run ◽  
Government Role ◽  
Short Run

Kajian ini bertujuan untuk menentukan faktor-faktor yang mempengaruhi impor kedelai Indonesia. Data yang digunakan adalah data sekunder berbentuk time series, diolah dan dianalisis dengan metode estimasi dan kointegrasi Autoregressive Distributed Lag (ARDL). Hasil penelitian menunjukkan bahwa faktor-faktor yang mempengaruhi impor kedelai Indonesia dalam jangka pendek adalah impor kedelai sebelumnya, harga kedelai USA, harga minyak kedelai Argentina, dan nilai tukar Rupiah. Dalam jangka panjang faktor yang berpengaruh adalah harga minyak kedelai Argentina, PDB Indonesia, dan nilai tukar Rupiah. Kajian ini merekomendasikan bahwa mekanisme pengamanan stok kedelai maupun minyak kedelai bermanfaat untuk menjaga ketersediaan pangan dalam negeri. Peran aktif pemerintah dalam mengamankan stok kedelai nasional serta pengumpulan data-data tentang impor kedelai merupakan tuntutan yang mendesak. Untuk menjaga kestabilan harga dan pasokan kedelai dalam negeri perlu ada upaya untuk mendiversifikasi negara asal impor. The aim of this study is to determine the factors that affect Indonesia’s imports of soybean. The study utilized time series secondary data and Autoregressive Distributed Lag (ARDL) cointegration analysis. The results reveal that in the short run Indonesia’s import of soybean are influenced by Indonesia's soybean imports in the previous year, price of USA’s soybean, Argentina’s soybean oil price, and the Rupiah exchange rate. In the long run Indonesia’s imports of soybean are influenced by Argentina’s soybean oil, Indonesia GDP, and the Rupiah exchange rate. This study recommends that mechanism to maintain soybean stocks demanded is useful for food security.Therefore Government role is important in providing the accurate data on soybean stock, and diversification of the country of origin is crucial to maintain price stability and supply continuity in the country

scholarly journals Asymmetrical Linkages between Foreign Exchange and Stock Markets: Empirical Evidence through Linear and Non-Linear ARDL

2018 ◽  
Vol 11 (3) ◽  
pp. 51 ◽  
Author(s):  
Rabia Luqman ◽  
Rehana Kouser
Keyword(s):  
Time Series Data ◽  
Equity Markets ◽  
Series Data ◽  
Policy Makers ◽  
Distributed Lag ◽  
Autoregressive Distributed Lag ◽  
Long Run ◽  
Non Linear ◽  
Short Run ◽  
Daily Time

The symmetrical relationship between currency and equity markets has gained much attention among academicians and policy makers in the recent era. Many studies conducted on this relationship have concluded that there is short-run relationship between these variables and found less evidence about a long-run relationship. Moreover, all previous studies supposed the linear or symmetrical relationship between these variables. In this study, we use daily time series data from G8+5 countries and Pakistan for 2000–2016 and apply linear and non-linear autoregressive distributed lag (ARDL) to check the symmetrical and asymmetrical relationship between currency and equity markets. Results have shown that there are asymmetrical linkages between the currency and equity markets.

China’s outward foreign direct investment and exports diversification: an asymmetric analysis

2020 ◽  
Vol 13 (2) ◽  
pp. 45-69 ◽  
Author(s):  
Faheem Ur Rehman ◽  
Yibing Ding ◽  
Abul Ala Noman ◽  
Muhammad Asif Khan
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Vital Role ◽  
Outward Foreign Direct Investment ◽  
Asymmetric Effect ◽  
Content Type ◽  
Distributed Lag ◽  
Autoregressive Distributed Lag ◽  
Long Run ◽  
Chinese Export

Purpose Over the past two decades, China’s outward foreign direct investment (OFDI) has risen remarkably. Whether such an increase affects the Chinese export diversification (ED) is a significant issue that has surprisingly remained unaddressed. This study aims to explain this issue that how OFDI plays a vital role in symmetric and asymmetric effects on its ED. Design/methodology/approach The authors introduce a robust nonlinear autoregressive distributed lag (NARDL) model. Ironically, the purpose of this study is to analyze the symmetric and asymmetric effect of OFDI on ED. Findings The authors propose that growing OFDI would be more advantageous to China, rather than the policies of contraction. Therefore, the study provides valuable policy insights to consider the long-run asymmetric momentum given to ED by China’s OFDI. Originality/value The results of this study may seem to be an important newsletter for further policy discussion on how China can catch up on the benefits of ED through OFDI.

Trade openness, financial liberalization and economic growth

2017 ◽  
Vol 6 (3) ◽  
pp. 229-246 ◽  
Author(s):  
Rana Muhammad Adeel-Farooq ◽  
Nor Aznin Abu Bakar ◽  
Jimoh Olajide Raji
Keyword(s):  
Economic Growth ◽  
Financial Liberalization ◽  
Positive Impact ◽  
Trade Openness ◽  
Principal Component ◽  
Content Type ◽  
Distributed Lag ◽  
Autoregressive Distributed Lag ◽  
Long Run ◽  
Comparison Of The Results

Purpose The purpose of this paper is to empirically examine the effects of financial liberalization and trade openness on the economic growth of two countries, namely, Pakistan and India for the period 1985-2014. Design/methodology/approach This study uses the autoregressive distributed lag technique, which allows mixed order of integration. In addition, it uses the principal component method to create an index for financial liberalization to examine how it affects the economic growth of the selected countries. Findings The findings reveal that in the short and long run, trade openness has positive effect on the Pakistan’s economic growth while the financial liberalization has positive impact only in the long run. In the case of India, both financial liberalization and trade openness positively and significantly influence the economic growth in the short and long run. Practical implications By comparing the results of both countries, trade openness and financial liberalization increase the economic growth of India more than that of Pakistan. These results suggest that Pakistan should consider appropriate positive policies regarding financial liberalization and trade openness to achieve high and stable economic growth in the future. Originality/value This study creates financial liberalization index by using the principal component analysis method to explain the role of financial liberalization in the economic growth of Pakistan and India. In addition, it makes comparison of the results based on which country benefits most from the liberalization of trade and financial sectors. Only very few studies have examined these countries, yet their results have remained inconclusive as well.

scholarly journals Determinants of Export Performance in ASEAN Region: Panel Data Analysis

2019 ◽  
Vol 12 (8) ◽  
pp. 1
Author(s):  
Thida Oo ◽  
Jerome Kueh ◽  
Daw Tin Hla
Keyword(s):  
Direct Investment ◽  
Panel Data Analysis ◽  
Export Performance ◽  
Policy Makers ◽  
Distributed Lag ◽  
Autoregressive Distributed Lag ◽  
Long Run ◽  
Time Period ◽  
Asean Countries ◽  
Study Panel

International trade is one of the major aspects that grow tremendously in Southeast Asia and export is regarded as main accelerators of growth in either developed or developing countries. The objective of this study is to determine the determinants of export performance for ASEAN countries. In this study, panel Autoregressive Distributed Lag (ARDL) method is adopted for time period between 2000 to 2015. Empirical findings indicate that there is a long-run relationship between determinants of export such as interest rate, economic growth and foreign direct investment with export performance of ASEAN countries. Therefore, policy makers need to strategize their policies to move towards closer cooperation among the ASEAN countries, especially promoting sustainable exportation in the region.

scholarly journals The effect of worker remittances on economic growth: An ARDL approach

2019 ◽  
Vol 30 (4) ◽  
pp. 434-441 ◽  
Author(s):  
Muhammad Kamran Khan ◽  
Jian-Zhou Teng ◽  
Muhammad Imran Khan
Keyword(s):  
Economic Growth ◽  
Time Series ◽  
Direct Investment ◽  
Domestic Saving ◽  
Distributed Lag ◽  
Autoregressive Distributed Lag ◽  
Long Run ◽  
Ardl Approach ◽  
Financial Flow ◽  
Short Run

Worker remittances are the main source of financial flow to any economy.  This study intended to scrutinize the effect of remittance inflow on Pakistan’s economy over the period 1976- 2016 by employing autoregressive distributed lag (ARDL) technique; because this method has been recently developed and has different advantages as compared to time series methods. ARDL method was applied to scrutinize the long run and the short run effect of worker remittances on Pakistan’s economy. This study concluded that Pakistan’s economy is positively affected by remittance inflow, foreign direct investment and the gross domestic saving in the long run, while Pakistan’s economy negatively affected by inflation and consumption in the long run. Remittances received from immigrant support economic growth in Pakistan because remittances inflow is mostly utilized for investment purpose. To further improve the economic development of Pakistan’s economy, it is suggested that policy maker in Pakistan encourage and motivate migrants to send remittances through proper channels to Pakistan, so that these inflows of remittances be used in such profitable investments that help to improve economic growth.

Growth impact of CO2 emissions caused by tourist arrivals in Turkey

2016 ◽  
Vol 8 (1) ◽  
pp. 19-37 ◽  
Author(s):  
Vedat Yorucu
Keyword(s):  
Error Correction ◽  
Error Correction Models ◽  
Content Type ◽  
Foreign Tourist ◽  
Distributed Lag ◽  
Autoregressive Distributed Lag ◽  
Long Run ◽  
Short Run ◽  
Dynamic Relationships ◽  
Long Run Equilibrium

Purpose – The purpose of this study is to analyze the determinants of changes in carbon dioxide (CO2) emissions for Turkey by utilizing the autoregressive distributed lag approach to investigate the long-run equilibrium relationships of CO2 emissions between foreign tourist arrivals (FTAs) and electricity consumption (ELC). The results reveal that foreign tourists and ELC are significant determinants of a long-run equilibrium relationship with CO2 emissions from electricity and heat production and CO2 emissions from transport for Turkey, respectively. The results of the conditional error correction models (CECM) confirm that there are long-run causal relationships from the growing number of foreign tourist arrivals and the increase of ELC toward the growth of CO2 emissions during 1960-2010. The results of autoregressive distributed lag (ARDL) error correction models for CO2 emissions also validate significant dynamic relationships between CO2 emissions, ELC and tourist arrivals in the short run. Design/methodology/approach – ARDL modeling and Bounds test approach were used in this study. Findings – Rapid tourism development in Turkey has triggered CO2 emissions. The growth of CO2 emissions in Turkey threatens sustainability. The hypothesis of “The growth of CO2 emissions in Turkey” is validated. Tourist arrivals, ELC and CO2 emissions are co-integrated. CECMs confirm the growth of CO2 emissions during 1960-2010. ARDL modeling shows significant relationships between CO2 emissions and other variables. Originality/value – Results of ARDL error correction models for CO2 emissions validate the hypothesis that there are significant dynamic relationships between CO2 emissions, ELC and tourist arrivals in Turkey for the short run.

scholarly journals The impact of FDI on Nigeria’s export performance: a sectoral analysis

2018 ◽  
Vol 45 (5) ◽  
pp. 1088-1103 ◽  
Author(s):  
Obiora G. Okechukwu ◽  
Glauco De Vita ◽  
Yun Luo
Keyword(s):  
Service Sector ◽  
Manufacturing Sector ◽  
Export Performance ◽  
Content Type ◽  
Distributed Lag ◽  
Autoregressive Distributed Lag ◽  
Long Run ◽  
Oil Exports ◽  
The Impact ◽  
Sectoral Fdi

Purpose The purpose of this paper is to examine the foreign direct investment (FDI)–exports relationship in Nigeria using disaggregated FDI and export data. Design/methodology/approach This paper applies the autoregressive distributed lag cointegration approach in examining the long-run relationship between FDI and exports. Findings The results suggest that aggregate FDI has a positive and statistically significant long-run impact on total exports. Once exports are disaggregated into oil and non-oil exports, the positive, cointegrating relationship holds only for oil exports. When disaggregated by sector, primary sector and manufacturing sector FDI have a positive and significant long-run relationship with both total exports and oil exports but service sector FDI does not appear to have any significant influence on Nigerian exports. Originality/value This is the first paper that employs both sectoral FDI and disaggregated export data to examine the FDI–exports nexus in Nigeria.

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