LONG-RUN DETERMINANTS OF SAVINGS RATES IN WAEMU COUNTRIES: AN EMPIRICAL ASSESSMENT FROM ARDL BOUNDS TESTING APPROACH

2011 ◽  
Vol 79 (3) ◽  
pp. 312-329 ◽  
Author(s):  
YAYA KEHO
Keyword(s):  
Bounds Testing ◽  
Empirical Assessment ◽  
Long Run ◽  
Ardl Bounds Testing ◽  
Bounds Testing Approach ◽  
Testing Approach ◽  
Ardl Bounds Testing Approach ◽  
Savings Rates

Relationship between Foreign Institutional Investment, Exchange Rate and Foreign Exchange Reserves: The Case of India using ARDL Bounds Testing Approach

GIS Business ◽  
2019 ◽  
Vol 10 (1) ◽  
pp. 33-39
Author(s):  
Niti Bhasin ◽  
Vartika Khandelwal
Keyword(s):  
Exchange Rate ◽  
Foreign Exchange ◽  
Foreign Exchange Reserves ◽  
Bounds Testing ◽  
Institutional Investment ◽  
Long Run ◽  
Ardl Bounds Testing ◽  
Bounds Testing Approach ◽  
Testing Approach ◽  
Ardl Bounds Testing Approach

Foreign institutional investment (FII) is believed to affect real economy of a country through its impact on factors such as exchange rates and foreign exchange reserves. Similarly, exchange rate movements are also believed to affect the FII coming to the country and foreign exchange reserves of the country. In the light of recent volatility in the movements of these variables, we examine the long-run and short-run relationship between these three variables. Using monthly data for the period September 1993 to July 2013, this paper employs the more recent and robust auto-regressive distributed lag (ARDL) bounds testing approach to study the relationship among these three variables. The results indicate strong evidence of a long-run relationship between FII as dependent variable and exchange rate and foreign exchange reserves as independent variables. We also find exchange rate to be a significant determinant of FII movements.

Understanding subnational conflicts in Myanmar

2019 ◽  
Vol 13 (2) ◽  
pp. 339-352 ◽  
Author(s):  
Partha Gangopadhyay ◽  
Siddharth Jain
Keyword(s):  
Arable Land ◽  
Armed Forces ◽  
Annual Data ◽  
Bounds Testing ◽  
Content Type ◽  
Long Run ◽  
Ardl Bounds Testing ◽  
Bounds Testing Approach ◽  
Testing Approach ◽  
Ardl Bounds Testing Approach

Purpose This paper aims to examine the interrelationships between subnational conflicts in Myanmar and other variables of interests from the following four major domains: economic, human security and vulnerability of people, aggressiveness or militancy of the armed forces and global and regional climates. Design/methodology/approach Autoregressive distributed lag (ARDL) bounds testing approach has been applied on annual data from 1960-2017, to deal with the problems of autocorrelation and non-stationarity of key variables. Findings First, an increase in crop yield, cereal productivity, food productivity and per capita availability of arable land unequivocally and significantly lower the severity of conflict in Myanmar in the long run. Second, the authors uncover strong evidence that the intensity of conflicts bears a positive relationship with the vulnerability of the people of Myanmar. Third, the authors detect that both regional and global climate variables have limited and rather inconsistent impacts on subnational conflicts in Myanmar. Finally, the authors find that the aggressiveness (militancy index) of the armed forces has significant impacts upon subnational conflicts and economic variables of Myanmar in the long run. Originality/value This paper is completely data-driven and explains the long-term dynamics of the intensity of the civil war in Myanmar. ARDL bounds testing approach has been used to examine the interrelationships between subnational conflicts in Myanmar and other variables of interests. It is a novel approach, which overcomes the problems of autocorrelation and nonstationarity and offers reliable results.

scholarly journals International Tourism and Economic Growth in Zimbabwe: An ARDL - Bounds Testing Approach

2021 ◽  
pp. 61-81
Author(s):  
Thabani Nyoni ◽  
Naftaly Mose ◽  
John Thomi
Keyword(s):  
Economic Growth ◽  
International Tourism ◽  
Bounds Testing ◽  
Long Run ◽  
Ardl Bounds Testing ◽  
Bounds Testing Approach ◽  
Testing Approach ◽  
The Government ◽  
Ardl Bounds Testing Approach ◽  
Growth Hypothesis

This study investigated the effect of international tourism development on economic growth in Zimbabwe, using time series data spanning over the period 1980 to 2017. The main aim of the study was to examine whether international tourism is a pathway to economic recovery in Zimbabwe. The study adopted the tourism growth model proposed by Balaguer and Cantavella-Jorda [1] and applied the Autoregressive Distributed Lag (ARDL) bounds testing approach and its associated Error Correction Model (ECM). The direction of causality between international tourism and economic growth was examined using the Granger causality test in an error correction framework. The findings of the study show that the Tourism-led Growth Hypothesis (TLGH) is valid both in the short-run and long-run while the Economic-Driven Tourism Growth Hypothesis (EDTGH) is valid in the long-run only. This implies that the resource allocation strategy for the Government of Zimbabwe should prioritize both international tourism and economic expansion. The study, therefore, recommends that the Government of Zimbabwe should allocate resources towards supporting the tourism sector to stimulate economic growth in the country. On the other hand, the study, guided by the validity of the EDTGH in the long run, suggests that the Government of Zimbabwe should also consider allocating resources to other sectors currently driving the economy, for example, the agriculture and manufacturing sectors; as this will stimulate economic expansion in the long run.

scholarly journals An ARDL Bounds Testing Approach to the Relationship between Financial Development and Output Growth in Nepal

2018 ◽  
Vol 11 (1) ◽  
pp. 5-20
Author(s):  
Surya Bahadur Rana
Keyword(s):  
Financial Development ◽  
Financial Sector ◽  
Output Growth ◽  
Bounds Testing ◽  
Long Run ◽  
Ardl Bounds Testing ◽  
Bounds Testing Approach ◽  
Testing Approach ◽  
The Relationship ◽  
Ardl Bounds Testing Approach

This paper examines the relationship between financial development and output growth in Nepal over 42 years of period from mid- July 1975 to 2017 using ARDL bounds testing approach to co-integration. The study uses natural logarithm of per capita real GDP as a proxy of output growth and means removal average of broad money (M2) to GDP ratio and domestic private credit to GDP ratio as a proxy of financial development indicator. The results of ARDL bounds test show that financial development and output growth in Nepal is co-integrated over the study period. The study results demonstrate that financial development in Nepal leads to output growth in the long-run. However, the study fails to detect any impact of financial development on output growth in Nepal over the short-run. Based on long run results of this study, it can be concluded that development of financial sector in Nepal can stimulate long-run output growth. Thus, considerable efforts should be paid on promoting the development of the financial sector that contributes significantly to achieve long-run output growth.

Energy consumption and agricultural economic growth in Pakistan: is there a nexus?

2019 ◽  
Vol 13 (3) ◽  
pp. 597-609 ◽  
Author(s):  
Abbas Ali Chandio ◽  
Yuansheng Jiang ◽  
Abdul Rehman
Keyword(s):  
Economic Growth ◽  
Energy Consumption ◽  
Agricultural Economic ◽  
Bounds Testing ◽  
Content Type ◽  
Long Run ◽  
Ardl Bounds Testing ◽  
Bounds Testing Approach ◽  
Testing Approach ◽  
Ardl Bounds Testing Approach

Purpose This study aims to empirically examine the relationship between energy consumption and agricultural economic growth in Pakistan over the period from 1984 to 2016. Design/methodology/approach This study used the autoregressive distributed lag (ARDL) bounds testing approach to cointegration to investigate the long-run and short-run determinants of agricultural economic growth in Pakistan. Findings The results of the ARDL bounds testing approach to cointegration revealed that long-run linkage exists among the study variables. The findings of this paper showed that agricultural economic growth is positively affected by gas consumption and electricity consumption both in the long-run and short run. The long-run and short-run coefficients of gas consumption and electricity consumption were estimated to be 0.906, 0.421, 0.595 and 0.276, respectively. The estimated equation remains stable during the period from 1984 to 2016 as analyzed by the stability tests. Originality/value This study considers the relationship between energy consumption and agricultural economic growth in Pakistan by using an ARDL bounds testing approach to cointegration. The study has three contributions to economic literature:this study used different unit root tests to test stationarity of the variables such as ADF unit root test by Dicky and Fuller and P-P unit root test by Philip and Perron; the ARDL bounds testing approach to cointegration is applied to test the existence of long-run analysis between energy consumption and agricultural economic growth; and to check the robustness, the authors used the Johansen cointegration test to examine the long-run relationship between dependent and independent variables.

scholarly journals Inflation Dynamics And Economic Growth In Tanzania: A Multivariate Time Series Model

2012 ◽  
Vol 28 (3) ◽  
pp. 317 ◽  
Author(s):  
Nicholas M. Odhiambo
Keyword(s):  
Economic Growth ◽  
Multivariate Time Series ◽  
Bounds Testing ◽  
Critical Question ◽  
Long Run ◽  
Ardl Bounds Testing ◽  
Short Run ◽  
Bounds Testing Approach ◽  
Testing Approach ◽  
Ardl Bounds Testing Approach

This study examines the short-run and long-run causal relationship between inflation, investment and economic growth in Tanzania. In the main, the study incorporates investment in a bivariate setting between inflation and economic growth hence, creating a trivariate model. The study attempts to answer one critical question: Does inflation have any significant influence on economic growth and investment in Tanzania? Using the ARDL-bounds testing approach, the study finds a unidirectional causal flow from inflation to economic growth without any feedback response. The study also finds that investment in Tanzania unambiguously causes economic growth. The results apply irrespective of whether the causality is estimated in the long run or in the short run.

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