scholarly journals Short and long-run returns to agricultural R&D in South Africa, or will the real rate of return please stand up?

2000 ◽  
Vol 23 (1) ◽  
pp. 1-15 ◽  
Author(s):  
David Schimmelpfennig ◽  
Colin Thirtle ◽  
Johan Zyl ◽  
Carlos Arnade ◽  
Yougesh Khatri
Keyword(s):  
South Africa ◽  
Rate Of Return ◽  
Real Rate ◽  
The Real ◽  
Long Run

scholarly journals The Rate of Return on Everything, 1870–2015*

2019 ◽  
Vol 134 (3) ◽  
pp. 1225-1298 ◽  
Author(s):  
Òscar Jordà ◽  
Katharina Knoll ◽  
Dmitry Kuvshinov ◽  
Moritz Schularick ◽  
Alan M Taylor
Keyword(s):  
Growth Rate ◽  
Rate Of Return ◽  
Annual Data ◽  
Real Rate ◽  
Data Set ◽  
Long Run ◽  
Advanced Economies ◽  
New Findings ◽  
Asset Classes ◽  
New Evidence

Abstract What is the aggregate real rate of return in the economy? Is it higher than the growth rate of the economy and, if so, by how much? Is there a tendency for returns to fall in the long run? Which particular assets have the highest long-run returns? We answer these questions on the basis of a new and comprehensive data set for all major asset classes, including housing. The annual data on total returns for equity, housing, bonds, and bills cover 16 advanced economies from 1870 to 2015, and our new evidence reveals many new findings and puzzles.

Research Note: Tourism as a Factor of Growth – the Case of Brazil

2011 ◽  
Vol 17 (6) ◽  
pp. 1375-1386 ◽  
Author(s):  
Juan Gabriel Brida ◽  
Lionello F. Punzo ◽  
Wiston Adrián Risso
Keyword(s):  
Dynamic Panel Data ◽  
Cointegration Analysis ◽  
Quality Data ◽  
International Tourism ◽  
Annual Data ◽  
Data Sets ◽  
Real Rate ◽  
Specific Test ◽  
The Real ◽  
Long Run

International tourism is recognized to contribute to long-run growth through a whole list of diverse channels. This belief that tourism can cause long-run growth is known in the literature as the ‘tourism-led growth hypothesis’. This case study of Brazil can be taken as a specific test for such a hypothesis. In the paper, two different econometric methodologies are applied to two distinct data sets, showing that the results are independent of either data or methodology. On the one hand, annual data from 1965 to 2007 for Brazil as a whole are used for a cointegration analysis to look for the existence of a long-run relationship among variables of economic growth, international tourism earnings and the real exchange rate. On the other hand, high-quality data for the 27 Brazilian states, though for a shorter period (from 1990 to 2005), enable the use of the dynamic panel data model proposed by Arellano and Bond (1991). The authors show that the long-run elasticities between real per capita GDP with respect to tourism receipts and the real rate of exchange are 0.13 and 0.30, respectively. Finally, they compare their results with those of similar studies.

Examining the financial performance of agricultural cooperatives in the USA

2019 ◽  
Vol 79 (2) ◽  
pp. 271-282 ◽  
Author(s):  
Krishna Prasad Pokharel ◽  
Madhav Regmi ◽  
Allen M. Featherstone ◽  
David W. Archer
Keyword(s):  
Interest Rate ◽  
Financial Performance ◽  
Financial Stress ◽  
Rate Of Return ◽  
Agricultural Cooperatives ◽  
Return On Assets ◽  
Real Rate ◽  
Content Type ◽  
Return On Equity ◽  
The Real

Purpose The purpose of this paper is to identify financial stress and the causes of financial stress for agricultural cooperatives and provide management recommendations to stakeholders including cooperatives’ managers, boards of directors and lenders. Design/methodology/approach This research used the geometric mean of the real rate of return on equity to identify financially stressed agricultural cooperatives. The real rate of return on equity allows the allocation of total financial stress among the return on assets, leverage and interest rate issues. Findings This study found that financially non-stressed agricultural cooperatives had a higher rate of return on equity and rate of return on assets, but lower leverage ratios and interest rates than stressed agricultural cooperatives. Further, non-stressed cooperatives had higher total assets and sales compared to stressed cooperatives. This suggests that smaller cooperatives are more likely to face financial stress than larger cooperatives. The decomposition of the financial problem showed that a substantial percentage of financial stress was correlated with a low return on assets or profitability. A smaller percentage of financial stress was due to financing decisions. Originality/value This study provides value by measuring the impact of profitability, leverage and interest rate on the financial performance of agricultural cooperatives. Results showed that a substantial proportion of financial stress was associated with a low return on assets. This indicates that profitability is a problem for agricultural cooperatives. This study also examines profitability during a period of volatile returns in production agriculture.

The Determinants of Long-run Real Exchange Rate in South Africa: A Fundamental Equilibrium Approach

2015 ◽  
Vol 15 (3) ◽  
pp. 319-336 ◽  
Author(s):  
Bernard Njindan Iyke ◽  
Nicholas M. Odhiambo
Keyword(s):  
South Africa ◽  
Exchange Rate ◽  
Real Exchange Rate ◽  
Trade Openness ◽  
Commodity Prices ◽  
Testing Procedure ◽  
Terms Of Trade ◽  
Bounds Testing ◽  
The Real ◽  
Long Run

In this paper, we identify the fundamental determinants of the long-run exchange rate in South Africa. We then estimate the equilibrium real exchange rate for this country using a dataset covering the period 1975–2012. In order to account for possible short-run fluctuations in the real exchange rate, we conducted a cointegration test using the ARDL bounds testing procedure. First, we found terms of trade, trade openness, government consumption, net foreign assets and real commodity prices to be the long-run determinants of the real exchange rate in South Africa. Second, we found that nearly 68.06% of the real exchange-rate disequilibrium is corrected annually. Overall, the estimated equilibrium rate indicates that the Rand has been depreciating in real terms over the years. Tightening trade openness is not an option, given international agreements; on the other hand, terms of trade and real commodity prices are determined by the world market. The obvious policy alternative is for South Africa to increase government spending and moderately decrease her net foreign asset position.

scholarly journals The Effect of Exchange Rate Movements and Economic Growth on Job Creation

2017 ◽  
Vol 62 (2) ◽  
pp. 20-41
Author(s):  
Chama Chipeta ◽  
Daniel Francois Meyer ◽  
Paul-Francois Muzindutsi
Keyword(s):  
Economic Growth ◽  
South Africa ◽  
Exchange Rate ◽  
Real Exchange Rate ◽  
Job Creation ◽  
Vector Autoregressive ◽  
The Real ◽  
Long Run ◽  
Exchange Rate Shocks ◽  
The Impact

Abstract Job creation is at the centre of economic development and remains a source of sustenance for social and human relations. The creation of a job-enabling economic environment is imperative in promoting social and economic cohesiveness in the macro and microeconomic environment. Any shocks to the economy, particularly those of exchange rate shocks and changes in economic growth, may negatively affect the labour market and job creation. This study made use of quarterly observations, from the first quarter of 1995 to the fourth quarter of 2015, to investigate the effect of the real exchange rate and economic growth on South Africa’s employment status. South Africa, a developing country, was selected as a case study due to its high unemployment rate that is still increasing. The Vector Autoregressive (VAR) model and multivariate co-integration techniques were used in assessing the impact and responsiveness of employment to the real exchange rate and real economic growth in South Africa. Findings of this study revealed that employment responds positively to economic growth and negatively to the real exchange rate in the long-run. The short-run displays a positive relationship between real economic growth and employment, while the relationship between employment and the real exchange rate is also negative. However, the effect of economic growth in creating jobs is not significant enough in stimulating job creation in South Africa, as indicated by results in variance decomposition. Movements in the exchange rate exerted a significant short and long-run negative effect on employment dynamics; implying that a depreciation of the rand against the U.S. dollar is associated with decrease in overall employment. Exchange rate stability is thus important for economic growth and job creation in South Africa. The study provided further recommendations on promoting job creation in South Africa and other developing countries.

A Service Foresters' Guide to Investment Terminologies—Which Ones Are Most Easily Understood By Landowners?

1984 ◽  
Vol 8 (3) ◽  
pp. 115-119 ◽  
Author(s):  
Bennett B. Foster
Keyword(s):  
The Other ◽  
Rate Of Return ◽  
Expectation Values ◽  
Real Rate ◽  
Forest Landowners ◽  
The Real ◽  
Large Segment ◽  
Market Rate ◽  
Small Forest

Abstract Discounting and its results: present net values, soil expectation values, net annual equivalents, and other similar measures, though standard in forestry evaluations, are unnecessary and confusing terms to a large segment of those interested in timber investments. There are just 2 measures that will tell most small forest landowners all they usually want to know about such investments. These measures are the rate of return and whether this rate has been adjusted for inflation (the real rate) or not adjusted for inflation (the nominal or market rate). The other terms, which are often understandable only to evaluation specialists, should be omitted from our vocabulary when dealing with the average small landowner/investor.

scholarly journals Interest Rate Interactions between Bangladesh and the US: Possible Pass Through From the US

2020 ◽  
Vol 13 (7) ◽  
pp. 1
Author(s):  
Mohammed Saiful Islam ◽  
Mohammad T. Uddin
Keyword(s):  
Interest Rates ◽  
Error Correction ◽  
Real Rate ◽  
The Real ◽  
The Third ◽  
Long Run ◽  
The Us ◽  
Nominal Rate ◽  
Small Economy ◽  
Pass Through

This paper investigates the long run relationship between the interest rates of Bangladesh and the United Sates (US). Using time series quarterly data for the period 1972- 2019, the study finds that the nominal rate of the US positively influences the nominal rate of Bangladesh and they do maintain a long run relationship. Similar result is obtained by examining the real rates of both countries. However, in the latter case the study period covers from the third quarter of 1993 to the third quarter of 2019. Estimation of the error correction model signifies that in both cases policy rate of Bangladesh significantly responds to the error, which is the measure of deviation from long run equilibrium. Although interest rates of Bangladesh respond to the error in both cases, the speed of adjustment is much higher in case of the real rates. Empirical findings reveal that around 6% error is corrected in every quarter if it is nominal rate whereas in the event of real rate the rate of error correction is almost 77%. These findings indicate that small economy Bangladesh plans its policy rate taking account of the dynamics of the large economy the US, and such policy dependence is more apparent for real rate of interest.

Sign in / Sign up

Export Citation Format

Share Document