scholarly journals Current account determinants in ASEAN 6

2018 ◽  
Vol 21 (2) ◽  
Author(s):  
Novi Ariyani ◽  
Fajar Wahyu Priyanto ◽  
Lilis Yuliati
Keyword(s):  
Foreign Direct Investment ◽  
Exchange Rate ◽  
Interest Rate ◽  
Gross Domestic Product ◽  
Current Account ◽  
Direct Investment ◽  
Domestic Product ◽  
Annual Data ◽  
The Current Account

This study aims to analyze the factors that influence the export activity in the ASEAN region countries such as Indonesia, Singapore, Thailand, Malaysia, Philippines and Vietnam during 2001 - 2016 by using annual data. The factors that influence gross domestic product (GDP), interest rate, foreign direct investment (FDI) and exchange rate. The method used in the research is panel Vector Error Correlation Model (PVECM). The results show that Gross Domestic Product (GDP) negatively affects the current account in the short term. The interest rate variable negatively affects the current account in the long term. The Foreign Direct Investment (FDI) variable negatively affects the current account in the long term. Furthermore, the exchange rate variable negatively affects the current account in the long term.

scholarly journals Does the Exchange Rate and Its Volatility Matter for International Trade in Ethiopia?

2021 ◽  
Vol 14 (12) ◽  
pp. 591
Author(s):  
Tiblets Nguse ◽  
Betgilu Oshora ◽  
Maria Fekete-Farkas ◽  
Anita Tangl ◽  
Goshu Desalegn
Keyword(s):  
Foreign Direct Investment ◽  
International Trade ◽  
Exchange Rate ◽  
Gross Domestic Product ◽  
Direct Investment ◽  
Domestic Product ◽  
Short Term ◽  
Rate Level ◽  
Exchange Rate Level

This study was carried out to investigate the impact of the Ethiopian exchange rate and its volatility on international trade. Trade openness was used as a proxy for international trade in the study. The study’s general objective was to investigate how international trade responds to exchange rate levels and volatility. The study relied solely on secondary time-series data spanning the years 1992 to 2019. The Autoregressive Distributive Lag (ARDL) model was used in the study to investigate the long-term relationship between exchange rate level, volatility, and international trade performance. An error correction model was used to estimate the variables in the short term. To conduct the regression analysis, Foreign Direct Investment (FDI), Gross Domestic Product (GDP), and inflation were used as control variables. The finding of the study implies that: in the short term, the exchange rate level was found to negatively and significantly influence international trade. However, exchange rate volatility positively and significantly affects international trade both in the short and in the long term. In addition, gross domestic product, foreign direct investment, and inflation have a positive effect on international trade both in the short term and long term. This finding lends support to the J-curve effects, which suggest an initial loss in the short term followed by a dramatic gain in the long term. However, the findings of this study suggest that there is no significant gain from international trade to justify currency depreciation in Ethiopia.

scholarly journals Exchange Rate Volatility and Foreign Direct Investment

2020 ◽  
Vol 12 (3) ◽  
pp. 38
Author(s):  
Samuel Erasmus Alnaa ◽  
Ferdinand Ahiakpor
Keyword(s):  
Foreign Direct Investment ◽  
Exchange Rate ◽  
Interest Rate ◽  
Gross Domestic Product ◽  
Real Exchange Rate ◽  
Direct Investment ◽  
Exchange Rate Volatility ◽  
External Factors ◽  
Conditional Heteroskedasticity ◽  
Data Set

The paper seeks to determine the effect of exchange rate volatility on foreign direct investment in Ghana from 1986 to 2017. The study adopted the Generalized Autoregressive Conditional Heteroskedasticity model to fit the data set from 1986-2017. The results indicate that, previous quarter information can influence current quarter volatility in Foreign Direct Investment. Real exchange rate, gross domestic product and treasure bill rate considered as external factors, are all found to be significant. This shows that, volatility from these factors can spillover to volatility in foreign direct investment.  To ensure stable inflow of foreign direct investment, we recommend that policies should gear towards stability in the forex market and interest rate among others.

scholarly journals Foreign Direct Investment (FDI), Trade and Its Contribution to the Mining Sector of Guinea

2016 ◽  
Vol 7 (2) ◽  
pp. 65
Author(s):  
Kimberly Racquel Elizabeth Chin
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Exchange Rate ◽  
Gross Domestic Product ◽  
Direct Investment ◽  
Mining Industry ◽  
Domestic Product ◽  
Mining Sector ◽  
The Government ◽  
The Relationship

In order to objectively analyze Foreign Direct Investment (FDI) contribution to Guinea’s mining sector, the granger casualty test was used to determine the relationship among variables and to determine whether any of these variables affect others and how. The variables used are Gross Domestic Product, Government Income, Trade, FDI inflow into Guinea mining sector and the exchange rate. The granger casualty test produced evidence of a bidirectional casualty relationship which suggests that FDI’s influence on efficiency lies in the government relaxing its dependency on the mining industry for economic  growth.

scholarly journals Foreign Debts Strategy Thesis for Improved Living Standard: The Nigerian Experience

2021 ◽  
Vol 3 (1) ◽  
pp. 1-13
Author(s):  
Ayangeadoo Alphonsus Hur-Yagba ◽  
Helen Elena Jekele ◽  
Kasim Umar
Keyword(s):  
Foreign Direct Investment ◽  
Exchange Rate ◽  
Gross Domestic Product ◽  
Direct Investment ◽  
Inflation Rate ◽  
Secondary Data ◽  
Least Square ◽  
Domestic Product ◽  
Living Standard ◽  
Significance Level

This study examined whether foreign debts have been able to improve or otherwise Nigeria’s economy towards improving the living standard of her citizenry with respect to the nation’s gross domestic product (GDP), USD exchange rate, inflation rate and foreign direct investment (FDI) for the period 1986 to 2017. The study was carried out in Nigeria with respect to other countries doing business with Nigeria. The study also made use of secondary data for the period under consideration. Data obtained were subjected to the cointegration test, which results show that the F-statistic is greater than the lower and upper bound critical value at a five per cent (5%) significance level. Thus, the null hypothesis of no long-run relationship is rejected at a five per cent (5%) significance level. It can, therefore, be inferred that the variables are cointegrated holding the external debt profile as the independent variable. Furthermore, the Ordinary Least Square Linear Multiple Regression Analyses (OLSLMRA) revealed that foreign debt significantly affected adversely, the nation’s gross domestic product (GDP), USD exchange rate and foreign direct investment; except for inflation rate. The study, therefore, concluded that foreign debts, though not the best option for countries striving to survive; still have a significant effect on Nigeria’s economy and indeed her living standard. The study recommends diversification of Nigeria’s economy outside the crude oil to include agriculture, solid minerals, manufacturing, trade and industry to improve on her gross domestic product (GDP), exchange rate, inflation rate and foreign direct investment (FDI) and thus better the living standard of her citizenry.

scholarly journals The Influence of Inflation Level, Exchange Rate and Gross Domestic Product on Foreign Direct Investment in the ASEAN Countries on 2007 - 2018

2020 ◽  
Vol 5 (3) ◽  
Author(s):  
John FoEh ◽  
Ni Kadek Suryani ◽  
Shakti Silpama
Keyword(s):  
Foreign Direct Investment ◽  
Exchange Rate ◽  
Gross Domestic Product ◽  
Direct Investment ◽  
Inflation Rate ◽  
Random Effect ◽  
Secondary Data ◽  
Domestic Product ◽  
Brunei Darussalam ◽  
Asean Countries

This research aims to determine the effect of the inflation rate, exchange rate and gross domestic product to the foreign direct investment in the ASEAN countries in periods of 2007-2016. The object of this research is the foreign direct investment in 11 countries of ASEAN region such as; Brunei Darussalam, Philippines, Indonesia, Cambodia Laos, Malaysia, Myanmar, Singapore, Thailand, Timor-Leste and Vietnam. The data used are secondary data with analysis by a panel data regression model using with an estimated model of random effect which were processed by Eviews tools version 10. The results of this study indicate that simultaneously the inflation rate, exchange rate, and gross domestic product have a very significant effect to the foreign direct investment. Partially, the inflation rate has a significant negative effect on foreign direct investment, while the exchange rate has a significant positive effect on foreign direct investment. The further analysis showed that the gross domestic product has no significant effect on foreign direct investment.

scholarly journals KONDISI MAKROEKONOMI SEBAGAI FAKTOR YANG MEMPENGARUHI NERACA TRANSAKSI BERJALAN PERIODE 1999-2016

2019 ◽  
Vol 11 (1) ◽  
pp. 87
Author(s):  
Erric Wijaya
Keyword(s):  
Exchange Rate ◽  
Current Account ◽  
National Income ◽  
Current Account Balance ◽  
Annual Data ◽  
Short Term ◽  
Macroeconomic Factors ◽  
Macroeconomic Variables ◽  
The Current Account

This study discusses the current account and itsinfluencing factors. The factors influencing the current account are macroeconomic factors, including national income (GDP), inflation, interest rate (SBI), and exchange rate.The period of this study starts from 1999 - 2016 using annual data. This study looks at the short-term and long-term effects of macroeconomic factors that affect the current account balance. The research model of this study was using cointegration test and Error Correction Model (ECM).The results showed that in the long run, the macroeconomic variables of national income (GDP) and inflation significantly influenced the current account balance. While in the short term, macroeconomic variables inflation and exchange rate significantly influenced the current account balance. Thusit can be concluded that, the inflation variable is the main macroeconomic variable that influenced the current account balance in the long term and in the short term. Keywords: current account, national income, SBI, inflation, exchange rate

Pengaruh Nilai Tukar dan Suku Bunga Acuan Terhadap Neraca Transaksi Berjalan di Indonesia Periode 2005:1 – 2015: 1 (Pendekatan Error Correction Model)

MODUS ◽  
2016 ◽  
Vol 28 (1) ◽  
pp. 105
Author(s):  
Toni Saputra ◽  
R Maryatmo
Keyword(s):  
Exchange Rate ◽  
Interest Rate ◽  
Current Account ◽  
Secondary Data ◽  
Analysis Tool ◽  
Short Term ◽  
Correction Model ◽  
The Exchange Rate ◽  
The Current Account

AbstrakPenelitian ini bertujuan untuk mengetahui dan menganalisis pengaruh nilai tukar dan suku bunga acuan terhadap neraca transaksi berjalan di Indonesia periode 2005:1- 2015:1. Data yang digunakan merupakan data sekunder. Data sekunder bersumber dari website Bank Indonesia. Alat analisis yang digunakan adalah Errror Correction Model (ECM). Selanjutnya analisis deskriptif digunakan untuk menjelaskan hasil penelitian.Penelitian ini menghasilkan dua hal. Pertama, dalam jangka pendek nilai tukar tidak berpengaruh terhadap neraca transaksi berjalan Indonesia. Dalam jangka panjang nilai tukar memiliki pengaruh positif dan signifikan terhadap neraca transaksi berjalan. Kedua, dalam jangka pendek suku bunga acuan tidak berpengaruh terhadap neraca transaksi berjalan Indonesia. Dalam jangka panjang suku bunga acuan memiliki pengaruh negatif terhadap neraca transaksi berjalan. Kata Kunci: neraca transaksi berjalan Indonesia, nilai tukar, suku bunga acuan, Errror Correction Model AbstractThis study aims to determine and analyze the effect of exchange rates and interest rates on current account in Indonesia from 2005: 1 to 2015: 1. The data used is secondary data. Secondary data is sourced from the website of Bank Indonesia. The analysis tool used is Errror Correction Model (ECM). Further descriptive analysis is used to explain the study results.This research resulted in two things. First, in the short term exchange rate has no effect on the current account in Indonesia. In the long term the exchange rate has a positive and significant impact on the current account. Second, in the short-term benchmark interest rate has no effect on the current account in Indonesia. In the long-term benchmark interest rate has a negative effect on the current account. Keywords: current account in Indonesia, the exchange rate, the benchmark interest rate, errror Correction Model

scholarly journals Studying Determinants of Foreign Direct Investment in Nigeria: An Empirical Investigation

2020 ◽  
pp. 73-84
Author(s):  
Ibeinmo Friday Cookey ◽  
Francis Ariayefa Eniekezimene
Keyword(s):  
Foreign Direct Investment ◽  
Exchange Rate ◽  
Interest Rate ◽  
Direct Investment ◽  
Inflation Rate ◽  
Trade Openness ◽  
The Other ◽  
Annual Data ◽  
Other Hand ◽  
Determinants Of Fdi

This research paper investigated the determinants of foreign direct investment inflow into the Nigerian economy. This is because Nigeria at present is still characterized by low economic growth, which has created other macro-economic problems like inflation, low export, unemployment, unfavorable exchange rate, balance of payment disequilibrium, etc. The study adopted the Autoregressive Distributed Lag (ARDL/Bounds testing) econometric tool to examine the determinants of foreign direct investment (FDI) in the Nigerian economy. Data for the analysis are annual data covering the period 1981-2019, obtained from the Central Bank of Nigeria (CBN) Statistical Bulletin several issues. The study used inflation rate (INFR), interest rate (INTR), exchange rate (EXR) and trade openness (TOPN) as independent variables. While foreign Direct Investment (FDI) was used as the dependent variable. The result indicates that exchange rate (EXR) and trade openness (TOPN) are all positive determinants of FDI in the Nigerian economy as their corresponding coefficients are positive. The result further shows that for the Nigerian economy to attract FDI significantly by one percent, exchange rate and trade openness will increase by 0.18 and 5.00 percent respectively. On the other hand, inflation rate (INFR), and interest rate (INTR) are negative determinants of foreign direct investment in Nigeria. Meaning that, an attempt to increase either of these variables would result to a decline in foreign direct investment in the country and vice versa. We therefore conclude that both EXR and TOPN had a positive and significant impact on the FDI inflow to the Nigerian economy, and are therefore adjudged positive determinants of FDI inflow into the Nigerian economy within the period 1981-2019. INFR and INTR on the other hand maintained their negative influence on FDI inflow to the Nigerian Economy, hence, are negative determinants of FDI inflow into the Nigerian economy within the period 1981-2019. Finally, we recommend that government should sustain its drive for import substitutions which will encourage export, expand its bilateral trade ties with developed economies so as to woo FDI inflows. Also, government through it monetary authorities should reduce inflation and interest rates. This will help to woo FDI inflow into the Nigerian economy.

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