scholarly journals Lending rate and firms’ investment decisions : Evidence from Ghana

2017 ◽  
Vol 5 (2) ◽  
pp. 141
Author(s):  
Joseph Amo ◽  
Hadrat M. Yusif
Keyword(s):  
Time Series Data ◽  
Negative Impact ◽  
Investment Decision ◽  
Private Investment ◽  
Series Data ◽  
Distributed Lag ◽  
Long Run ◽  
Lending Rate ◽  
Short Run ◽  
The Impact

This paper has examined the impact of lending rate on firms’ investment decision in Ghana. The Autoregressive Distributed Lag (ARDL) estimation framework was applied to time series data from 1980 to 2011. We found that lending rate has significant negative impact on private investment in both short run and long run in Ghana. It was also found that real GDP has a significant direct impact on private investment in both the short run and the long run periods. Our findings have important implications for investment policy in Ghana.

scholarly journals Determinants of Private Investment in Pakistan

2020 ◽  
Vol 2 (3) ◽  
pp. 86-92
Author(s):  
Muhammad Suleman ◽  
Abdur Rehman ◽  
Haroon Javaid
Keyword(s):  
Growth Rate ◽  
Public Sector ◽  
Time Series Data ◽  
Trade Openness ◽  
Private Investment ◽  
Series Data ◽  
Distributed Lag ◽  
Long Run ◽  
Domestic Savings ◽  
Short Run

Private investment has a significant relation with the economic growth of the country. It plays an important role in reduction of unemployment and poverty by promoting efficiency and competition among the firms. This study is an attempt to investigate the determinants of private investment in Pakistan. For this purpose, time-series data is utilized for the period 1974-2013. The ARDL (Auto Regressive-Distributed Lag) modeling technique of co-integration was employed to estimate the short-run and long-run determinants of private investment in Pakistan. Empirical findings of this study indicated that in the short-run private investment in Pakistan is determined by the growth rate of GDP, public sector investment, and domestic savings. While in the long run it is determined by the official exchange rate, the growth rate of GDP, public sector investment, domestic savings, trade openness, and interest rate. The results also revealed that in the case of Pakistan different political regimes (democratic, non-democratic) have no significance in the determination of private investment. Stability tests of CUSUM and (CUSUMSQ) (Cumulative Sum Control Chart) were performed in this study. These tests indicated a stable, long run as well as short-run structural stability of the model.

IMPACT OF MONETARY POLICY TARGETS ON CAPITAL MARKET DEVELOPMENT IN NIGERIA

2021 ◽  
Vol 8 (1) ◽  
pp. 85-95
Author(s):  
Abdulkarim Musa ◽  
◽  
Uwaleke Uche ◽  
Nwala Nneka ◽  
◽  
...  
Keyword(s):  
Monetary Policy ◽  
Money Supply ◽  
Capital Market ◽  
Time Series Data ◽  
Market Development ◽  
Series Data ◽  
Distributed Lag ◽  
Long Run ◽  
Short Run ◽  
The Impact

This study empirically examines the impact of monetary policy targetson capital market development in Nigeria from 1986-2018. Time series data and econometric tools were used to test for the stationarity and causality effect. The Auto-Regressive Distributed Lag Model (ARDL) and Error Correction Model (ECM) techniques were used to examine the short-run and long-run impact and relationship between Monetary Policy and Capital Market Development in Nigeria. The study revealed that both in the long run and short run Exchange Rate (EXCHR), Inflation Rate (INFR), and Interest Rate in Nigeria (INTR)were negatively related to Capital Market Development (CAMKTD) in Nigeria and they were statistically insignificant in explaining changes in Capital Market Development (CAMKTD) in Nigeria. On the other hand, inthe long run, Money Supply was positively related to Capital Market Development (CAMKTD) in Nigeria and was statistically significant at a 5% level significant while Money Supply (M2) was positively related to Capital Market Development (CAMKTD) in Nigeria both in the long run and short-run and was statistically significant at 5% level of significance. Therefore, the study recommends that government should improve the efficiency and effectiveness of the money supply in Nigeria since it was statistically significant in determining the improvement of Capital Market Development (CAMKTD) in Nigeria.

scholarly journals The Impact of Saving and Financial Development on Economic Growth in Turkey

2019 ◽  
Vol 11 (2) ◽  
pp. 1
Author(s):  
Hatem Hatef Abdulkadhim Altaee ◽  
Mohamed Khaled Al-Jafari
Keyword(s):  
Economic Growth ◽  
Financial Development ◽  
Time Series Data ◽  
Series Data ◽  
Domestic Saving ◽  
Distributed Lag ◽  
Autoregressive Distributed Lag ◽  
Long Run ◽  
Short Run ◽  
The Impact

Since saving and financial development are vital to economic growth, this research empirically investigates the impact of saving and financial development on economic growth in Turkey. Therefore, a time series data from 1968 until 2017 were tested utilizing both the error correction model (ECM) and the autoregressive distributed lag approach (ARDL). The findings reveal an existence of a short-run and a long-run positive and significant effect of savings and financial development on economic growth. Conventional inputs such as capital and labor proved to be the most important factors in achieving economic growth in Turkey. The study concludes that an appropriate policy mix will enhance domestic saving in the country.

scholarly journals The Impact of Fiscal Policy Variables on Private Investment in Nigeria

2020 ◽  
Author(s):  
ABDULKARIM YUSUF ◽  
Saidatulakmal Mohd.
Keyword(s):  
Fiscal Policy ◽  
Time Series Data ◽  
Private Investment ◽  
Jel Classification ◽  
Series Data ◽  
Simultaneous Estimation ◽  
Distributed Lag ◽  
Ex Post ◽  
Long Run ◽  
The Impact

Abstract Motivated by the need to avoid potential parameter bias associated with previous empirical researches, the current study conducted a disaggregated inquiry of the individual impact of fiscal policy variables on private investment in Nigeria. The empirical investigation adopted the Autoregressive Distributed Lag method which allows for the simultaneous estimation of the short and long-run relationships between variables, removing the problems associated with excluded variables and the existence of autocorrelation. The method was applied to time series data spanning the period 1980-2017, generated using the quantitative and ex- post facto research design. The bounds test results established a co-integrating relationship between private investment and its selected determinants. The empirical findings confirmed that various components of direct taxes retarded the growth of private investment while indirect taxes stimulated the growth of private investment. Government capital spending had a favourable and statistically relevant impact on private investment while public external debt suggested a deleterious effect of inhibiting private investment both in the long and short run. The study recommended harmonizing tax policies to curb multiple taxes and high cost of doing business; and major investment in infrastructures to improve private investment and affect long-term growth positively.JEL Classification Codes: A22, E62, F16, G18, H26.

Impact of exchange rate and oil price on the yield of sovereign bond and sukuk: Evidence from Malaysian capital market

2017 ◽  
Vol 5 (4) ◽  
pp. 27
Author(s):  
Huda Arshad ◽  
Ruhaini Muda ◽  
Ismah Osman
Keyword(s):  
Exchange Rate ◽  
Capital Market ◽  
Time Series Data ◽  
Oil Prices ◽  
Oil Price ◽  
Series Data ◽  
Sovereign Bond ◽  
Long Run ◽  
Short Run ◽  
The Impact

This study analyses the impact of exchange rate and oil prices on the yield of sovereign bond and sukuk for Malaysian capital market. This study aims to ascertain the effect of weakening Malaysian Ringgit and declining of crude oil price on the fixed income investors in the emerging capital market. This study utilises daily time series data of Malaysian exchange rate, oil price and the yield of Malaysian sovereign bond and sukuk from year 2006 until 2015. The findings show that the weakening of exchange rate and oil prices contribute different impacts in the short and long run. In the short run, the exchange rate and oil prices does not have a direct relation with the yield of sovereign bond and sukuk. However, in the long run, the result reveals that there is a significant relationship between exchange rate and oil prices on the yield of sovereign bond and sukuk. It is evident that only a unidirectional causality relation is present between exchange rate and oil price towards selected yield of Malaysian sovereign bond and sukuk. This study provides numerical and empirical insights on issues relating to capital market that supports public authorities and private institutions on their decision and policymaking process.

Fish Exports and Economic Growth: The Pakistan’s Experience

2019 ◽  
Vol 20 (2) ◽  
pp. 279-296 ◽  
Author(s):  
Syed Tehseen Jawaid ◽  
Mohammad Haris Siddiqui ◽  
Zeeshan Atiq ◽  
Usman Azhar
Keyword(s):  
Economic Growth ◽  
Time Series Data ◽  
Positive Impact ◽  
Impulse Response Function ◽  
Policy Implications ◽  
Sensitivity Analyses ◽  
Series Data ◽  
Distributed Lag ◽  
Long Run ◽  
Short Run

This study attempts to explore first time ever the relationship between fish exports and economic growth of Pakistan by employing annual time series data for the period 1974–2013. Autoregressive distributed lag and Johansen and Juselius cointegration results confirm the existence of a positive long-run relationship among the variables. Further, the error correction model reveals that no immediate or short-run relationship exists between fish exports and economic growth. Different sensitivity analyses indicate that initial results are robust. Rolling window analysis has been applied to identify the yearly behaviour of fish exports, and it remains negative from 1979 to 1982, 1984 to 1988, 1993 to 1999, 2004 and from 2010 to 2013, and it shows positive impact from 1989 to 1992, 2000 to 2003 and from 2005 to 2009. Furthermore, the variance decomposition method and impulse response function suggest the bidirectional causal relationship between fish exports and economic growth. The findings are beneficial for policymakers in the area of export planning. This study also provides some policy implications in the final section.

Does Public Debt Service Expenditure Crowd-Out Economic Growth? Empirical Evidence from an African Developing Country

2019 ◽  
Vol 64 (3) ◽  
pp. 23-38
Author(s):  
Talknice Saungweme ◽  
Nicholas M. Odhiambo
Keyword(s):  
Economic Growth ◽  
Public Debt ◽  
Time Series Data ◽  
Policy Formulation ◽  
Debt Service ◽  
Series Data ◽  
Long Run ◽  
Short Run ◽  
The Impact

Abstract This paper contributes to the ongoing debate on the impact of public debt service on economic growth; and it provides an evidence-based approach to public policy formulation in Zimbabwe. The empirical analysis was performed by applying the autoregressive distributed lag (ARDL) technique to annual time-series data from 1970 to 2017. The study findings reveal that the impact of public debt service on economic growth in Zimbabwe is negative in the short run but positive in the long run. The results are suggestive of the existence of a crowding-out effect of public debt service in Zimbabwe in the short run and a crowding-in effect in the long run. In view of these findings, the government should consider fiscal and financial policies that promote a constant supply of long-term finance, long-term fixed investments, and extension of a government securities maturity structure so as to ensure sustainable short- and long-term public debt service expenditures. The study further recommends the strengthening of non-distortionary revenue mobilisation reforms to reduce market distortions and boost domestic investment.

scholarly journals Political Stability and its Impact on Economic Growth of Pakistan (1988-2018): A Time Series Analysis

2020 ◽  
Vol 6 (1) ◽  
pp. 273-282
Author(s):  
Majid Hussain Phul ◽  
Muhammad Saleem Rahpoto ◽  
Ghulam Muhammad Mangnejo
Keyword(s):  
Economic Growth ◽  
Time Series ◽  
Time Series Data ◽  
Political Stability ◽  
Series Data ◽  
Explanatory Variables ◽  
Long Run ◽  
Short Run ◽  
The Impact ◽  
Positive Effect

This research paper empirically investigates the outcome of Political stability on economic growth (EG) of Pakistan for the period of 1988 to 2018. Political stability (PS), gross fixed capital formation (GFCF), total labor force (TLF) and Inflation (INF) are important explanatory variables. Whereas for model selection GDPr is used as the dependent variable. To check the stationary of time series data Augmented Dickey Fuller (ADF) unit root (UR) test has been used,  and whereas to find out the long run relationship among variables, OLS method has been used. The analysis the impact of PS on EG (EG) in the short run, VAR model has been used. The outcomes show that all the variables (PS, GFCF, TLF and INF) have a significantly positive effect on the EG of Pakistan in the long run period. But the effect of PS on GDP is smaller. Further, in this research we are trying to see the short run relationship between GDP and other explanatory variables. The outcomes show that PS does not have such effect on GDP in the short run analysis. While GFCF, TLF and INF have significantly positive effect on GDP of Pakistan in the short run period.

Terrorism and Stock Market Linkages: An Empirical Study from a Front-line State

2017 ◽  
Vol 18 (2) ◽  
pp. 365-378 ◽  
Author(s):  
Imtiaz Arif ◽  
Tahir Suleman
Keyword(s):  
Stock Prices ◽  
Stock Price ◽  
Time Series Data ◽  
Negative Impact ◽  
Stock Exchange ◽  
Series Data ◽  
Front Line ◽  
Long Run ◽  
Factor Index ◽  
The Impact

This article investigates the impact of prolonged terrorist activities on stock prices of different sectors listed in the Karachi Stock Exchange (KSE) by using the newly developed terrorism impact factor index with lingering effect (TIFL) and monthly time series data from 2002 (January) to 2011 (December). Johansen and Juselius (JJ) cointegration revealed a long-run relationship between terrorism and stock price. Normalized cointegration vectors are used to test the effect of terrorism on stock price. Results demonstrate a significantly mixed positive and negative impact of prolonged terrorism on stock prices of different sectors and show that the market has not become insensitive to the prolonged terrorist attacks.

scholarly journals Climate Change Impact On Rice Production in Pakistan: An ARDL-Bounds Testing Approach to Cointegration

2018 ◽  
Author(s):  
Abbas Ali Chandio ◽  
Yuansheng Jiang ◽  
Habibullah Magsi
Keyword(s):  
Climate Change ◽  
Time Series Data ◽  
Rice Production ◽  
Series Data ◽  
Bounds Testing ◽  
Long Run ◽  
Short Run ◽  
Bounds Testing Approach ◽  
The Impact ◽  
Ardl Bounds Testing Approach

This research paper aims to examine the relationship between CO2, temperature, area, fertilizers and rice production in Pakistan. This study used Augmented Dickey Fuller (ADF) and Phillips Perron (PP) unit root tests to check the order of integration of each variable. The cointegration analysis with ARDL bounds testing approach is used to examine the impact of climate change on rice production in Pakistan over time series data from the period 1968 to 2014. The parameter stability test of the model is also checked at the end. The results of estimation show that the important variables of the study are cointegrated demonstrating the presence of long-run association among them. Furthermore, climate change factors, e.g. CO2 and temperature have a long-run and short-run positive effect on the production of rice in Pakistan. This present work is original and it is first time empirically tested the impact of climate change on rice production in Pakistan. The annual time series data of 47 years enhances the validity of the empirical findings. The most fruitful finding of this research is that rice production in Pakistan is positively influenced by emission of carbon dioxide (CO2) at 5 percent significance level in both long-run and short-run.

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