Import Demand Function in India Under the Liberalised Trade Regime

2021 ◽  
pp. 001946622110635
Author(s):  
Moutushi Chakraborty ◽  
Biswajit Maitra
Keyword(s):  
Exchange Rate ◽  
Population Growth ◽  
Demand Function ◽  
Negative Impact ◽  
Positive Impact ◽  
Trade Openness ◽  
Import Demand ◽  
Rapid Expansion ◽  
Trade Regime ◽  
Liberalisation Policy

The trade liberalisation policy was initiated in India in the 1980s but executed effectively since the early 1990s. Since then India’s foreign trade embarks on a new road with a rapid expansion of export and import. Over the period, import exceed export. Identifying factors influencing such a significant elevation of import is a relevant issue of research. This study appraises import demand function in India for the liberalised trade regime particularly, for an extended period 1980–2018, and for the post-reform period, 1992–2018. The study identifies domestic income in aggregated and disaggregated level with exchange rate, trade openness and population growth as significant determinants of import demand. The income has a positive impact on import demand, where income elasticity of import demand differs significantly across the aggregate income and its components—consumption, investment and export expenditure. The exchange rate has a negative impact, implies a depreciation of Indian currency decrease import demand. The trade openness causes a rise in import demand both in the long run and in the short run. Population growth also raises import demand. The econometric diagnostics corroborate the fact that the estimated import demand functions are stable and robust. JEL Codes: F10, F14, C22

scholarly journals THE IMPACT OF EXCHANGE RATE VOLATILITY ON ECONOMIC GROWTH IN NIGERIA: A DYNAMIC ECONOMETRIC APPROACH

2021 ◽  
pp. 16-40
Author(s):  
Comfort Akinwolere Bukola ◽  
Keyword(s):  
Economic Growth ◽  
Exchange Rate ◽  
Time Series Data ◽  
Negative Impact ◽  
Positive Impact ◽  
Exchange Rate Volatility ◽  
Series Data ◽  
Balance Of Trade ◽  
Econometric Approach ◽  
The Impact

This study examined the impact of exchange rate volatility on economic growth in Nigeria. The study covers the period of 1986 to 2019. Using time series data, the methodology adopted is the Vector Error Correction Mechanism to explore the impact of exchange rate volatility on the selected macroeconomic variables. The result indicated that exchange rate volatility has a significant impact on economic growth, specifically it has a positive impact on inflation, unemployment and balance of trade. On the other hand it has a negative impact on economic growth and investment. The recommendations made include; that relevant authorities should try to avoid systematic currency devaluations in order to maintain exchange rate volatility at a rate that allows adjustment of the balance of payments.

scholarly journals Effect of terrorism activities on capital flight in the Middle East

2020 ◽  
Vol 157 ◽  
pp. 03017
Author(s):  
Anahita Seifi ◽  
Samira Motaghi ◽  
Salah Ebrahim ◽  
Mojtaba Soltani Ahmadi
Keyword(s):  
Middle East ◽  
Negative Impact ◽  
Positive Impact ◽  
Trade Openness ◽  
Economic Consequences ◽  
Capital Flight ◽  
Spatial Effects ◽  
Negative Effects ◽  
Capital Outflow ◽  
Middle East Countries

Behavioral economics has proven that negative emotions can influence investors’ decisions. One of the factors that have a negative impact on investors’ sentiment is terrorism as the new face of violence with economic consequences. The link between terrorism and capital outflow is a theoretical framework that explains how violence affects capital flight of a country. With this in mind, the purpose of this study is to investigate the effect of terrorist activities on capital flight in the Middle East countries during the period 2000-2016 using the Spatial Econometric Panel Data Approach. The results of this study show that terrorism and its spatial effects have a significant and positive impact on capital flight in the Middle East countries. Also, gross domestic production (GDP) and trade openness have negative effects on capital outflow. This study has important implications for policymakers in countries facing terrorist activity and investors’ trust building.

APPLE EXPORT FROM POLAND IN THE YEARS 1995-2015

2018 ◽  
Vol XX (2) ◽  
pp. 105-110
Author(s):  
Paweł Kraciński
Keyword(s):  
Exchange Rate ◽  
Linear Regression ◽  
Regression Model ◽  
Linear Regression Model ◽  
Positive Impact ◽  
Import Demand ◽  
Model Research ◽  
Producer Prices ◽  
The Exchange Rate

The aim of the research was to determine the factor affecting the volume of apple export from Poland in the years 1995-2015. The studies used a linear regression model. Research has shown that the most important factors determining the volume of apple exports from Poland were: the volume of Russian apple import, apples harvest in Poland, the exchange rate of PLN/USD and producer prices in the previous year. The increase in import demand for apples in Russia by 1 thousand tons caused, on average, a rise in export from Poland by 585 tons. The increase in apple harvest in Poland by 1 thousand tons resulted in an increase in export by 292 tons. The zloty depreciation and higher producer prices in previous years also had a positive impact on the volume of apple export from Poland.

scholarly journals Determinants of Non-Performing Loan in Nepalese Commercial Banks

2017 ◽  
pp. 22-38 ◽  
Author(s):  
Seema Bhattarai
Keyword(s):  
Exchange Rate ◽  
Commercial Banks ◽  
Negative Impact ◽  
Positive Impact ◽  
Percent Level ◽  
Real Effective Exchange Rate ◽  
Macroeconomic Variables ◽  
Effective Exchange ◽  
Effective Exchange Rate ◽  
The Impact

The non-performing loans (NPL) of financial institutions are considered as a significant issue in the context of Nepal for last few decades. The paper aims to identify the impact of macroeconomic variables (GDP, Inflation, and Real Effective Exchange Rate) and bank specific variables (size, change in loan, real lending rate of interest, and share of loan to total assets) on the non-performing loan of the commercial banks in Nepal. The study was conducted mainly with secondary sources. The data were collected for 26 commercial banks covering the period of 2002-2012 with 227 observations. The study found that macroeconomic variables such as the real effective exchange rate have significantly negative impact on non-performing loan. The impact of GDP growth rate was found to be insignificant in this study. One year lagged inflation rate has significant positive impact on non-performing loan. The banks which charge relatively higher real interest rate have higher non-performing loan, which is consistent with the findings of previous studies. The ownership dummy has positive coefficient and significant at one percent level showing that if the bank is government owned the non-performing loan would be higher than that of the private owned banks. As well, more lending in the previous years and current year reduces the non-performing loan since the coefficient of change in loan in current and previous years have negative coefficient and significant at one percent level.Economic Journal of Development Issues Vol. 19 & 20 No. 1-2 (2015) Combined Issue, Page: 22-38

Real Effective Exchange Rate, Broad Money Supply, and Trade Balance in Vietnam: An Empirical Analysis from Bounds Test to a Cointegration Approach

2020 ◽  
Author(s):  
Kieu Oanh Dao ◽  
V.C. Nguyen ◽  
Si Tri Nhan Dinh
Keyword(s):  
Exchange Rate ◽  
Money Supply ◽  
Trade Balance ◽  
Negative Impact ◽  
Positive Impact ◽  
Real Effective Exchange Rate ◽  
Long Run ◽  
Effective Exchange ◽  
Effective Exchange Rate ◽  
The Impact

This paper aims to investigate the impact of the real effective exchange rate and broad money supply on the trade balance in Vietnam using quarterly data from the first quarter of 2000 to the fourth quarter of 2018. Using the ARDL-ECM approach to investigate this effect, a cointegration relationship exists between real effective exchange rate, broad money supply and trade balance. Results demonstrate that real effective exchange rate has a short-term negative impact on trade balance. Additionally, broad money supply has a positive impact on trade balance in the short run and long run with a very weak effect. Surprisingly, it was found that real foreign income and local income have no impact on trade balance.

The Impact of Financial Inclusion on Poverty Reduction

2021 ◽  
Vol 0 (0) ◽  
Author(s):  
Huong Thi Thanh Tran ◽  
Ha Thi Thu Le
Keyword(s):  
Poverty Reduction ◽  
Negative Impact ◽  
Positive Impact ◽  
Trade Openness ◽  
Principal Component ◽  
Financial Inclusion ◽  
Factors Affecting ◽  
Global Issue ◽  
Negative Effect ◽  
The Impact

Abstract Poverty is a global issue and a lot of attention and efforts of the international community have been made to deal with this problem. Especially in the context of the COVID-19 pandemic, when a part of the population could fall into poverty due to rising unemployment and income deduction, identifying the factors affecting poverty becomes particularly important. Financial inclusion has been recognized as one important factor affecting poverty reduction. This research is conducted to investigate the impact of financial inclusion and other control variables on poverty reduction. The study employs Principal Component Analysis (PCA) to build a financial inclusion index. Using 2SLS and the GMM regressions for a panel data of 29 European countries during the period from 2011 to 2017, the results show that financial inclusion has a negative impact on poverty at all three poverty lines of USD1.9, 3.2, and 5.5 per day. The proportion of the population aged 15–64 and the ratio of service employment to the total number of employment also have a negative effect on all three levels of POV1.9, POV3.2, and POV5.5. In contrast, GDP per capita, trade openness and the proportion of the population aged from 25 with at least secondary school education have a positive impact on poverty at three levels of poverty. The results confirm that financial inclusion plays an important role in reducing poverty. The study provides a number of recommendations to governments to promote financial inclusion and reduce poverty in the countries.

Openness-inflation Nexus in alternative monetary regimes

2020 ◽  
Vol 0 (0) ◽  
Author(s):  
Pei-Chien Lin ◽  
Ho-Chuan Huang ◽  
Xiaojian Liu
Keyword(s):  
Developing Countries ◽  
Exchange Rate ◽  
Negative Impact ◽  
Trade Openness ◽  
Developed Countries ◽  
Flexible Exchange Rate ◽  
Rate System ◽  
Exchange Rate System ◽  
The Impact ◽  
Developing And Developed Countries

AbstractBy applying an endogenous switching regression model to a sample of 64 countries, this article explores whether the effect of trade openness on inflation is influenced by the adoption of inflation targeting (IT). The outcome indicates that, while there exists a significant and negative impact of trade openness on inflation in the non-IT countries with flexible exchange rate system, the effect is negligible in the IT economies. In addition, the above differential inflation effect of trade openness across IT and non-IT regimes is only present in the developing subsample with flexible exchange rate system, but not the developed counterpart. Moreover, apart from trade openness, financial openness reinforces inflation in those developing countries not adopting IT, whereas no such significant effect is found in developing countries adopting IT. Instead of inflation, further results show that trade openness lowers inflation volatility both in developing and developed countries not adopting IT, yet the impact is smaller in developed country group. However, no such statistically significant link is found in developing and developed countries that adopt IT.

scholarly journals IMPACT OF COST OF WAR AGAINST TERRORISM ON THE DIFFERENT DETERMENTS OF FDI OF PAKISTAN

2016 ◽  
Vol 4 (5) ◽  
pp. 156-168
Author(s):  
Khakan Najaf ◽  
Rabia Najaf
Keyword(s):  
Negative Impact ◽  
Positive Impact ◽  
Trade Openness ◽  
Negative Relationship ◽  
Arma Model ◽  
Secondary Data ◽  
Transfer Of Technology ◽  
Cost Of War ◽  
Basic Purpose ◽  
The Growth Of Economy

In our study we have proven that FDI has crucial role in the growth of economy and the major source of the investment between developing and under developing countries, which is act as the bridge between saving-investment gaps.FDI is also way to increase the employment opportunities, economic growth and transfer of technology. In this study we have determined the different benefits of FDI for Pakistan .For this purpose we have taken the data from 1981 to 2011.we had collected the secondary data .the basic purpose of this study is to check the influence of cost of war against the terrorism. We had applied two basic techniques ARMA model and OLS regression. Our result is showing that there is negative relationship between FDI and cost of war against the terrorism.However,control variables namely, trade openness;incentives,market size and exchange rate stability have positive impact on the inflows of FDI.On the other side, inflation rate has negative impact on the inflows of all developing and under developing country.

scholarly journals Impact of Budget Deficit on Inflation: A Case Study of Pakistan

2019 ◽  
Vol 1 (1) ◽  
pp. 42-58
Author(s):  
Muhammad Hamza ◽  
Muhammad Azhar Bhatti ◽  
Kokab Kiran
Keyword(s):  
Exchange Rate ◽  
Money Supply ◽  
Budget Deficit ◽  
Negative Impact ◽  
Positive Impact ◽  
Economic Indicator ◽  
Gdp Growth ◽  
Distributed Lag ◽  
Official Exchange Rate ◽  
The Government

The research is concerned with examining the effect of budget deficit on inflation a case of Pakistan economy. As inflation is one of the most prominent macro-economic indicator which tells us about how the prices in country are reacting and subsequently how other factors are being affected. So in this study we have analyzed the effect of budget deficit on inflation. As Pakistan is a developing nation where inflation and budget deficit are two major issues so for that reason we included the effect of budget deficit.  The dependent variable is inflation and independent variables are money supply, GDP growth, unemployment, official exchange rate and fiscal deficit. The data is from 1985 to 2017. For checking unit root we applied augmented dickey fuller test and the study applied the Auto Regressive Distributed Lag Model (ARDL) method. The data is taken from world development indicator and from Pakistan Economic Survey. The results conclude that budget deficit, GDP growth and money supply have positive impact while unemployment and official exchange rate have negative impact. The study suggests that the government should focus on generating new revenue sources rather the foreign financing.

scholarly journals ANALISIS DAMPAK HARGA EMAS DUNIA, HARGA MINYAK DUNIA, KURS, INDEKS HARGA KONSUMEN (IHK), DAN BI RATE TERHADAP JAKARTA ISLAMIC INDEX

2019 ◽  
Vol 1 (02) ◽  
pp. 7-20
Author(s):  
Muhammad Umar Azyka Alfuadi
Keyword(s):  
Exchange Rate ◽  
Price Index ◽  
Negative Impact ◽  
Positive Impact ◽  
Consumer Price Index ◽  
Gold Price ◽  
Oil Price ◽  
Economic Principle ◽  
Islamic Economic

The paper attempts to analyze the impacts of gold price, oil price, exchange rate, consumer price index, and BI rate to Jakarta Islamic Index using VAR- VECM analysis. The result shows that in long term all variables have a significant impact to JII. Gold price has negative impact to JII 4,1% and stable after 12 months, oil price has positive impact 1% and stable after 21 months, exchange rate has positive impact 3,8% and stable after 17 months, consumer price index has positive impact 0,5% and stable after 21 months, and BI rate has negative impact 6,2% and stable after 15 months. BI rate also gives the biggest impact‟s contribution into JII. This result is very contradictory with Islamic economic principle “No-Riba Oriented”.

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