scholarly journals The Macroeconomic Determinants of Foreign Bank’s Profitability in Malaysia

2018 ◽  
Vol 7 (3.21) ◽  
pp. 152
Author(s):  
Pang Jiunn Yi ◽  
Devinaga R ◽  
Yuen Yee Yen ◽  
Suganthi . ◽  
Shalini .
Keyword(s):  
Interest Rate ◽  
Real Interest Rate ◽  
Inflation Rate ◽  
Research Study ◽  
Time Series Data ◽  
Foreign Banks ◽  
Series Data ◽  
Return On Assets ◽  
Cross Sectional ◽  
Macroeconomic Determinants

The topic of this research paper is “The macroeconomic determinants of foreign bank’s profitability in Malaysia. Panel data method were employed to analyze the cross sectional data and time series data collected  from 2006 to 2015 from a sample of ten foreign banks in Malaysia. Measurement of profitability is based on Return on assets which is a function of the macroeconomic determinants; GDP, inflation rate and real interest rate. The overall finding of this research study shows that GDP, inflation rate and real interest rate are the determinants of foreign banks in Malaysia. Those determinants were found to be statistically related on profitability and all of them had a positive relationship towards the profitability of foreign banks in Malaysia.  

A RESEARCH PAPER ON MONETARY POLICY AND INFRASTRUCTURAL GROWTH: FURTHER EVIDENCE FROM NIGERIA.

2020 ◽  
Vol 7 (11) ◽  
pp. 467-484
Author(s):  
Sunday Osahon Igbinedion
Keyword(s):  
Monetary Policy ◽  
Interest Rate ◽  
Affordable Housing ◽  
Inflation Rate ◽  
Time Series Data ◽  
Capital Expenditure ◽  
Series Data ◽  
Single Digit ◽  
Key Factor ◽  
The Face

Extant economic literature has acknowledged monetary policy as a key factor influencing infrastructural growth through different channels, such as affordable housing and efficient transportation, among others. However, in recent times, the Nigeria’s experience suggests a conflicting position on the above supposition. It is against this backdrop that this study set out to investigate the nexus between monetary policy and infrastructural growth within the Nigerian context, time series data from 1981 to 2018, and utilizing the Fully Modified Least Squares (FMOLS) estimation technique. The results show that both real interest rate and inflation rate exerted negative and statistically significant impact on infrastructural growth, while federal government capital expenditure and net official development assistance impacted positively on the level of infrastructural growth in the period under assessment. In the light of the study’s findings, the study recommends that, the monetary authority should carefully review existing lending interest rate downward to a single digit that will be investment driven particularly in the face of current global economic uncertainties occasioned by the COVID-19 pandemic that has led to the collapse of many economies across the world.

scholarly journals Tegar Prasetya Analysis of Macroeconomic Influence Return on Assets Banking Study on Conventional Commercial Banks in Indonesia for the Year 2018–2020

2021 ◽  
Vol 6 (5) ◽  
pp. 268-275
Author(s):  
Tegar Prasetya ◽  
Hakiman Thamrin
Keyword(s):  
Exchange Rate ◽  
Interest Rate ◽  
Commercial Banks ◽  
Time Series Data ◽  
Series Data ◽  
Analysis Tool ◽  
Return On Assets ◽  
Macroeconomic Variables ◽  
The Exchange Rate ◽  
The Interest Rate

This study aims to analyze the effect of macroeconomic variables on the return on banking assets. The data processing method used by the researcher is using the Vector Error Correction Model (VECM) as a data analysis tool and this study confirms that the extent to which it examines the positive and significant influence between macroeconomic variables on the return on banking assets. The data obtained is secondary data based on financial statements within a period of 3 years using monthly time series data. The results of this study indicate that there is a positive and significant effect on the exchange rate and CPI variables while it is negative and significant on the inflation, interest rate and IPI variables resulting from the long-term VECM estimation. While the results show that there is a positive and significant effect on the interest rate and CPI variables and a significant negative on the inflation variable, positive and insignificant on the exchange rate variable, negative and insignificant on the IPI variable on the ROA of the short-term VECM estimation results. The results of the measurement of the composition or contribution of the influence of the independent variable on the dependent variable show the interest rate variable with a value of 4.11% in the 10th period obtained through the results of the decomposition variance (VD) test on the return on assets (ROA) of banking studies at Conventional Commercial Banks in Indonesia.

scholarly journals Unbundling interest rate and bank credit nexus on income inequality: structural break analysis from Nigeria

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Bosede Ngozi Adeleye
Keyword(s):  
Interest Rate ◽  
Income Inequality ◽  
Real Interest Rate ◽  
Time Series Data ◽  
Structural Break ◽  
Economic Consequences ◽  
Bank Credit ◽  
Series Data ◽  
Content Type ◽  
Distributed Lag

Purpose Income inequality stalls economic growth with undesirable socio-economic consequences. Despite various measures targeted towards reducing the inequality gap, disparities in income distribution persist in Nigeria. Therefore, this study aims to explore a new line of argument to the finance mechanism in reducing income inequality. Design/methodology/approach The study uses time-series data on Nigeria from 1980 to 2015 with analysis conducted using the autoregressive distributed lag-error correction model approach of Pesaran et al. (2001). Findings The results show amongst others that the channel of real interest rate on income inequality is through bank credit, real interest rate has an indirect relationship to income inequality and bank credit has an equalising impact on income inequality when the model is augmented for a structural break. The results show amongst others, that, on average, ceteris paribus, a 1% point increase in the real lending interest rate is associated with a 0.45% decline in the volume of bank credit. Originality/value This paper engages a new line of argument by unbundling how financial intermediation impacts on income inequality. The extant literature submits that finance directly impacts income inequality, whereas this study investigates further to show that interest rate impacts income inequality through bank credit. That is, the transmission mechanism by which finance affects income inequality is modelled and analysed.

scholarly journals FAKTOR – FAKTOR YANG MEMPENGARUHI INVESTASI PEMERINTAH PADA SEKTOR PERTANIAN DI PROVINSI JAMBI

2017 ◽  
Vol 2 (2) ◽  
pp. 85
Author(s):  
Mulyani Mulyani
Keyword(s):  
Time Series ◽  
Exchange Rate ◽  
Interest Rate ◽  
Linear Regression ◽  
Real Interest Rate ◽  
Agricultural Sector ◽  
Time Series Data ◽  
Series Data ◽  
Government Investment ◽  
Agriculture Sector

This research was conducted to analyse government investment in agriculture sector at Jambi Province. This research was held  on June - September 2017 by collecting data from several agencies. It used a time series data for 10 years (2006-2015).  This research  applied   multiple linear regression to  analyse the data. The results show that 95.9% of government investment in agriculture sector could  be  explained by  domestic  income variable, export-import growth of agriculture sector, real interest rate, rupiah exchange rate, previous government investment, and growth of agriculture sector. In fact the factors that had a significant effect were domestic  income variable, , export-import growth of agricultural sector, previous government investment and the growth of agriculture sector.Keywords: government investment, agricultural sector, growthPenelitian ini dilakukan untuk menganalisis investasi pemerintah pada sektor pertanian di Provinsi Jambi. Penelitian dilaksanakan di Provinsi Jambi dengan mengumpulkan data dari beberapa instansi terkait, yang dilaksanakan pada bulan Juni 2017 sampai September 2017. Dimana penelitian ini menggunakan data time series, dengan rentang waktu 10 tahun (2006-2015). Analisis data pada penelitian ini menggunakan regresi linear berganda. Hasil penelitian menunjukkan 95,9% penyerapan investasi pemerintah pada sektor pertanian dapat dijelaskan oleh variabel pendapatan asli daerah,pertumbuhan ekspor-impor sektor pertanian, tingkat suku bunga riil, nilai tukar rupiah, investasi pemerintah pada tahun sebelumnya, dan pertumbuhan sektor pertanian. Dari faktor-faktor tersebut yang berpengaruh signifikan adalah Pendapatan asli daerah, pertumbuhan ekspor impor sektor pertanian, investasi pemrintah pada tahun sebelumnya dan pertumbuhan sektor pertanian.Kata Kunci : investasi pemerintah, sektor Pertanian, pertumbuhan

scholarly journals Estimation of Consumption Function for Developing Economies: China, Turkey, Vietnam and Bangladesh

2020 ◽  
Vol V (I) ◽  
pp. 1-11
Author(s):  
Saima Liaqat ◽  
Marguerite Wotto ◽  
Khalid Khan
Keyword(s):  
Interest Rate ◽  
Interest Rates ◽  
Real Interest Rate ◽  
Time Series Data ◽  
Developing Economies ◽  
Series Data ◽  
Consumption Function ◽  
Middle Income ◽  
Aggregate Consumption ◽  
Real Gdp

This study analyses the determinants of consumption function for four countries: China and Turkey as Upper Middle-Income Economies (UMIE); Bangladesh and Vietnam as Lower Middle-Income Economies (LMIE). It used a model based on the ARDL technique to analyze the time series data for the period of 1985- 2018. The results reveal that wealth and labor income have a similar impact on consumption in UMIE and LMIE since they affect significantly and positively aggregate consumption. Unemployment and real interest rates have an analogous result for UMIE while assorted results LMIE. The real interest rate harms RPAC as evidence of income effect. However, the short-term wealth and real GDP positively affect real RPAC whereas the unemployment rate and real interest rate negatively affect aggregate real private consumption of the selected economies.

scholarly journals Financial Reforms and Industrial Sector Growth: Bound Testing Analysis for Pakistan

2010 ◽  
Vol 5 (2) ◽  
pp. 75-81 ◽  
Author(s):  
Shahida Wizarat ◽  
Qazi Hye
Keyword(s):  
Interest Rate ◽  
Real Interest Rate ◽  
Financial Liberalization ◽  
Time Series Data ◽  
Industrial Sector ◽  
Series Data ◽  
Financial Reforms ◽  
Long Run ◽  
Short Run ◽  
Growth Bound

Financial Reforms and Industrial Sector Growth: Bound Testing Analysis for PakistanThis study investigates the relationship between the financial liberalization index and industrial sector growth for Pakistan. Annual time series data from 1971 to 2007 is used and ARDL bounds testing techniques are applied. In the short run both the financial liberalization index and the real interest rate speed up industrial sector growth. However, in the long run the financial liberalization index and real interest rate slow down industrial sector growth. The error correction terms indicate that 41% disequilibrium in the short run is adjusted every year in the long run.

scholarly journals Relationship between lending interest rate, inflation rate and capital formation in Kenya

2021 ◽  
Vol 1 (5) ◽  
pp. 339-347
Author(s):  
Titus Mosoti Ogero
Keyword(s):  
Time Series ◽  
Interest Rate ◽  
Interest Rates ◽  
Inflation Rate ◽  
Time Series Data ◽  
Capital Formation ◽  
Series Data ◽  
Expectation Theory ◽  
Level Of Significance ◽  
The Relationship

The study seeks to understand the relationship between lending interest rate, inflation rate and capital formation in Kenya. Time series from World Bank for the 1988 to 2018 is employed. Development of literature is guided by expectation theory, classical theory of interest rate and the institutionalist theory of capital formation. The study finds capital formation, lending interest rate ad inflation rate time series data to be stationary at the 5% level of significance. This leads to the checking of the lag order used and estimating of VAR model. The results indicate that, current year’s; capital formation, inflation rate and lending interest rate are insignificant in determining next year’s level of capital formation. First lag of inflation rate is found positively significant in influencing lending interest rates as well as the first lag of lending interest rate is found significant on influencing itself. Capital formation first lag is found to be negatively significant in determining inflation rate. Lastly, inflation rate first lag is found to be positive

scholarly journals Panel Econometric Analysis on Mobile Payment Transactions and Traditional Banks Effort toward Financial Accessibility in Sub-Sahara Africa

2020 ◽  
Vol 12 (3) ◽  
pp. 895 ◽  
Author(s):  
Cephas Paa Kwasi Coffie ◽  
Hongjiang Zhao ◽  
Isaac Adjei Mensah
Keyword(s):  
Time Series Data ◽  
Unit Root Test ◽  
Panel Cointegration ◽  
Ordinary Least Squares ◽  
Sustainable Growth ◽  
Series Data ◽  
Mobile Payment ◽  
Cross Sectional ◽  
Mobile Payments ◽  
Long Run

The financial landscape of sub-Sahara Africa is undergoing major changes due to the advent of FinTech, which has seen mobile payments boom in the region. This paper examines the salient role of mobile payments in traditional banks’ drive toward financial accessibility in sub-Sahara Africa by using panel econometric approaches that consider the issues of independencies among cross-sectional residuals. Using data from the World Development Index (WDI) 2011–2017 on 11 countries in the region, empirical results from cross-sectional dependence (CD) tests, panel unit root test, panel cointegration test, and the fully modified ordinary least squares (FMOLS) approach indicates that (i) the panel time series data are cross-sectionally independent, (ii) the variables have the same order of integration and are cointegrated, and (iii) growth in mobile payment transactions had a significant positive relationship with formal account ownership, the number of ATMs, and number of new bank branches in the long-run. The paper therefore confirms that the institutional structure of traditional banks that makes them competitive, irrespective of emerging disruptive technologies, has stimulated overall financial accessibility in the region leading to overall sustainable growth in the financial sector. We conclude the paper with feasible policy suggestions.

An easy way to create duration variables in binary cross-sectional time-series data

2020 ◽  
Vol 20 (4) ◽  
pp. 916-930
Author(s):  
Andrew Q. Philips
Keyword(s):  
Time Series ◽  
Missing Data ◽  
Time Series Data ◽  
Series Data ◽  
Duration Dependence ◽  
Cross Sectional ◽  
Common Solution ◽  
The Common

In cross-sectional time-series data with a dichotomous dependent variable, failing to account for duration dependence when it exists can lead to faulty inferences. A common solution is to include duration dummies, polynomials, or splines to proxy for duration dependence. Because creating these is not easy for the common practitioner, I introduce a new command, mkduration, that is a straightforward way to generate a duration variable for binary cross-sectional time-series data in Stata. mkduration can handle various forms of missing data and allows the duration variable to easily be turned into common parametric and nonparametric approximations.

CAUSAL RELATIONSHIP OF ENERGY CONSUMPTION AND ECONOMIC GROWTH – A CASE STUDY OF PAKISTAN

2021 ◽  
Vol 9 (1) ◽  
pp. 139-164
Author(s):  
Saddam Hussain ◽  
Chunjiao Yu
Keyword(s):  
Economic Growth ◽  
Time Series ◽  
Energy Consumption ◽  
Causal Relationship ◽  
Inflation Rate ◽  
Time Series Data ◽  
Consumer Price Index ◽  
Series Data ◽  
Relationship Of

This paper explores the causal relationship between energy consumption and economic growth in Pakistan, applying techniques of co-integration and Hsiao’s version of Granger causality, using time series data over the period 1965-2019. Time series data of macroeconomic determi-nants – i.e. energy growth, Foreign Direct Investment (FDI) growth and population growth shows a positive correlation with economic growth while there is no correlation founded be-tween economic growth and inflation rate or Consumer Price Index (CPI). The general conclu-sion of empirical results is that economic growth causes energy consumption.

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