scholarly journals Long-run asymmetric association between FDI and productivity in Turkey

2021 ◽  
Vol 39 (2) ◽  
pp. 253-297
Author(s):  
Yüksel Okşak ◽  
Cüneyt Koyuncu
Keyword(s):  
Labor Productivity ◽  
Macro Level ◽  
Foreign Direct Investments ◽  
Productivity Level ◽  
Aggregated Data ◽  
Nonlinear Ardl ◽  
Long Run ◽  
Level Data ◽  
Ardl Approach ◽  
Productivity Indicators

Incoming foreign direct investments (FDI) may enhance the productivity level of the host country by bringing new advanced technologies. On the other hand, the nexus of FDI and productivity, rather than being linear, might be nonlinear because the effect of increases and decreases in FDI on productivity may not be symmetric. In this sense, this study investigates the asymmetric relationship between FDI and productivity in Turkey by using two different productivity indicators (i.e., PROD1 and PROD2) and employing a Nonlinear ARDL approach. Our hypothesis claims there is an asymmetric association between FDI and productivity in the long run in Turkey. Nonlinear cointegration test findings indicate that selected variables are cointegrated. Hence, they move together in the long run. Our study uses aggregated data at the macro level to analyze the long-term asymmetric relationship between foreign direct investment and labor productivity in Turkey using the NARDL estimation technique. Concerning the estimation results, a long-run nonlinear relationship between incoming FDI and labor productivity was detected, and this finding remained valid across two models constructed by using two distinct labor productivity indicators. As a whole, our results are consistent with the ones found in the literature. Besides, for the first time in the literature, this study addresses the long-run asymmetric nexus between FDI and labor productivity by using macro-level data specific to Turkey and makes various policy recommendations.

scholarly journals Do Migrant Remittances Spur Financial Development in Pakistan?evidence From Linear and Nonlinear Ardl Approach

2020 ◽  
Vol 5 (4) ◽  
Author(s):  
Muhammad Faheem ◽  
Azali Mohamed ◽  
Fatima Farooq ◽  
Sajid Ali
Keyword(s):  
Financial Development ◽  
Asymmetric Effect ◽  
Distributed Lag ◽  
Nonlinear Ardl ◽  
Real Gdp ◽  
Long Run ◽  
Potential Gain ◽  
Ardl Approach ◽  
Migrant Remittances ◽  
Bound Test

The study asseses the influence of  migrant remittances on financial development over the period of 1976-2018 in Pakistan. This study has applied the linear autoregressive distributive lag (ARDL) model and nonlinear autoregressie distributed lag (NARDL) model to check the symmetric and asymmetric effect of remittances. Results of the ARDL and NARDL bound test confirm remittances, FDI, real GDP and inflation significantly contributing to financial development. The outcomes of ARDL and NARDL have also confirmed the significant positive effect of  migrant remittances on financial development in long-run. The asymmetric ARDL  results show the existence of remittances nonlinear effect  on financial development. Specifically, the study found remittances decrease have a significant impact while remittances increase have no any significant effect on financial development. Based on findings, this study recommends the plan for the policymakers of recipient countries, especially Pakistan, could harvest the potential gain of migrant remittances though positive asymmetric association with financial sector development.

Dynamic linkages between Non-renewable energy, Renewable energy and Economic growth through nonlinear ARDL approach: Evidence from Malaysia

2021 ◽  
Author(s):  
Rafia Afroz ◽  
Md Muhibbullah
Keyword(s):  
Economic Growth ◽  
Renewable Energy ◽  
Asymmetric Effect ◽  
Nonlinear Ardl ◽  
Long Run ◽  
Ardl Approach ◽  
Consumption Reduction ◽  
Short Run ◽  
Auto Regressive ◽  
Nardl Model

Abstract The purpose of this paper is to investigate the links between renewable energy (RE), non-renewable energy (NRE), capital, labour and economic growth, using the Non-linear Auto Regressive Distributive Lag (NARDL) model in Malaysia for the period of 1980–2018. The results of NARDL confirm the asymmetric effect of RE and NRE consumption on the economic growth in the long run as well as short run in Malaysia. The findings also show that in the long and short-run, positive shocks of NRE are greater than the positive shocks of RE. It indicates that Malaysia's economic growth is highly dependent on NRE which is not a good indication as NRE consumption increases carbon dioxide (CO2) emission in the country. Moreover, the empirical results of this study demonstrated that RE consumption reduction accelerates economic growth whereas NRE consumption reduction decreases economic growth. It can have claimed that in Malaysia RE is still more expensive than NRE. In conclusion, this study offered a variety of measures to develop RE to reduce the dependency on NRE consumption.

scholarly journals Internal Factors Affecting Commercial Bank Lending: Symmetric and Asymmetric Effects of Macro-Level Data Evidence

2021 ◽  
Vol 25 (3) ◽  
pp. 717-733
Author(s):  
Arintoko Arintoko
Keyword(s):  
Bank Lending ◽  
Capital Adequacy ◽  
Macro Level ◽  
Analysis Model ◽  
Internal Factors ◽  
Operating Income ◽  
Asymmetric Effects ◽  
Long Run ◽  
Level Data ◽  
Negative Effect

The purpose of this study is to estimate the symmetric and asymmetric effects of internal factors on bank lending measured by loan to deposit ratio (LDR). The analysis model applies the Autoregressive Distributed Lag (ARDL) and nonlinear ARDL models. The data analyzed are monthly time series and cover the period of 2012M01 – 2020M06. The contribution of this research is the provision of empirical evidence of the asymmetric effect of internal bank performance on bank lending at the macro-level data. The results show that the non-performing loan (NPL) is a consistent and robust variable that has a negative effect on bank lending both in the short and long run, both symmetrically and asymmetrically. The capital adequacy ratio (CAR) positively affects bank lending when it decreases in the long run. Operating expense to operating income (OEOI) has a negative effect only in the short run, assuming symmetric and asymmetric effects. The liquid assets ratio (LAR) has a negative effect on bank lending when it increases both in the short and long run. The banking supervisory agency needs to consistently supervise and enforce regulations effectively related to bank soundness, especially those concerning increasing performing loans, strengthening the capital structure, and improving efficiency.DOI: 10.26905/jkdp.v25i3.5760

The Asymmetric Effects of Exchange Rate Changes on the Trade Balance of Singapore

2017 ◽  
Vol 17 (4) ◽  
pp. 20170055
Author(s):  
Mohsen Bahmani-Oskooee ◽  
Hanafiah Harvey
Keyword(s):  
Exchange Rate ◽  
Trade Balance ◽  
Bilateral Trade ◽  
Research Direction ◽  
Asymmetric Effects ◽  
Nonlinear Ardl ◽  
Long Run ◽  
Ardl Approach ◽  
Short Run ◽  
Exchange Rate Changes

Previous studies that tested the short-run and long-run effects of exchange rate changes on trade balances assumed that the effects are symmetric. The more recent research direction has now changed to investigating the possibility of asymmetric effects. In this paper, we assess the short-run and long-run effects of exchange rate changes on the bilateral trade balances of Singapore with her 11 partners. By applying the nonlinear ARDL approach, which separates appreciations from depreciations, we find that exchange rate changes have short-run asymmetric effects in most models. The short-run effects, however, lasted into the long run in a few models. In the long run, while depreciation improves Singapore’s trade balance with the U.S., it hurts it with Malaysia and China. These three partners account for almost 50 % of Singapore’s trade.

Do Imports and Exports Adjust Nonlinearly? Evidence from 100 Countries

2018 ◽  
Vol 18 (1) ◽  
pp. 20170094 ◽  
Author(s):  
Augustine C. Arize ◽  
Mohsen Bahmani-Oskooee
Keyword(s):  
Linear Models ◽  
Budget Constraint ◽  
Trade Flows ◽  
Nonlinear Ardl ◽  
Long Run ◽  
Ardl Approach ◽  
Nonlinear Fashion ◽  
Comprehensive Study

A country is said to live within its international budget constraint if its exports and imports are cointegrated. Previous studies that tried to verify the cointegration between exports and imports used linear models and supported the theory in almost 50% of countries. In this paper, when we use the nonlinear ARDL approach and asymmetry cointegration method, we support the long-run link between imports and exports in 94 out of 100 countries in our sample. This study is not only the most comprehensive study in the literature, but it is also the first to show that, indeed, trade flows adjust in a nonlinear fashion.

scholarly journals The Relationship between Inflation and Interest Rates in the UK: The Nonlinear ARDL Approach

2020 ◽  
Vol 9 (3) ◽  
pp. 77-86
Author(s):  
Ismet Gocer ◽  
Serdar Ongan
Keyword(s):  
Interest Rates ◽  
Fisher Effect ◽  
Nonlinear Ardl ◽  
Long Run ◽  
Inflation Rates ◽  
Ardl Approach ◽  
Nonlinear Ardl Model ◽  
The Uk ◽  
First Time ◽  
The Relationship

AbstractThis study reconsiders the Fisher effect for the UK from a different methodological perspective. To this aim, the nonlinear ARDL model recently developed by Shin et al. (2014), is applied over the periods of 1995M1-2008M9 and 2008M10-2018M1. This model decomposes the changes in original inflation series as two new series: increases and decreases in inflation rates. Hence, it enables us to examine the Fisher effect in terms of increases and decreases in inflation separately. The empirical findings support asymmetrically partial Fisher effects for the UK in the long-run only for the first period. Additionally, this study attempts to describe and introduce a different version of the partial effect concept for the first time for the UK.

Financial inclusion matters for economic growth in India

2019 ◽  
Vol 46 (1) ◽  
pp. 132-151 ◽  
Author(s):  
Dinabandhu Sethi ◽  
Susanta Kumar Sethy
Keyword(s):  
Economic Growth ◽  
Financial Services ◽  
Financial Inclusion ◽  
Supply Side ◽  
Demand Side ◽  
Causality Test ◽  
Content Type ◽  
Nonlinear Ardl ◽  
Long Run ◽  
Ardl Approach

Purpose The purpose of this paper is to examine the relationship between financial inclusion (FI) and economic growth in India. Design/methodology/approach To measure FI, a multidimensional time-varying index is proposed following the Human Development Index method. The long-run relationship between FI and economic growth is examined by using the autoregressive distributed lag (ARDL) approach to cointegration and nonlinear ARDL approach. Further, the direction of causality is investigated by employing the Toda–Yamamoto Granger causality test. Findings The linear cointegration test confirms a long-run relationship between FI and economic growth for India. The improvement in both demand-side and supply-side financial services has a positive impact on economic growth. These results suggest that India can attain long-run economic growth by improving the coverage of FI. However, there is no evidence of nonlinear cointegration, indicating that there is no asymmetric effect of FI on economic growth. Further, the causality test shows that FI granger causes economic growth but not vice versa. Research limitations/implications The major limitation of the study is the availability of time series data for all important variables. The index for both demand- and supply-side indicators can be extended with several other important variables in later date once the data are available for those variables. Practical implications As the study confirms that FI is one of the main drivers of economic growth, it is suggested that the policy maker emphasizing on financial sector reforms can enjoy economic growth in the long run, especially in developing countries. Therefore, the government and policy makers need to address the issues involved in access to financial services to spur economic growth. Originality/value The study examines the long-run relationship between FI and economic growth employing ARDL bound testing approach and nonlinear ARDL approach, separately for demand-side and supply-side indicators. Further, the study uses the Toda–Yamamoto granger causality to find the direction of causal flow between FI and economic growth.

WAYS TO IMPROVE INTERNAL AUDIT OF PAYMENTS TO EMPLOYEES

2017 ◽  
Author(s):  
Natalia Ivanova ◽  
◽  
Svitlana Mykhailovyna ◽  
Olena Matros ◽  
◽  
...  
Keyword(s):  
Labor Productivity ◽  
Information Technologies ◽  
Internal Audit ◽  
Employee Benefits ◽  
Actual State ◽  
High Quality ◽  
Employee Benefit ◽  
Productivity Indicators ◽  
State Of Affairs ◽  
Practical Recommendations

There is no doubt that the issues of improving the methodological foundations of internal audit of payments to employees in the context of increased competition in all areas of business, the introduction of modern information technologies in the accounting process are relevant. Salaries are not only a source that ensures the life of employees, but their growth affects the increase in labor productivity and profit of the enterprise. Internal audit allows to ensure high-quality accounting of payments to employees, which is important in determining labor productivity indicators and ways to improve it. The purpose of the article is to substantiate the theoretical and methodological basis with the development of practical recommendations for improving the methodology of internal audit of employee benefits in order to improve the detailed audit content. It has been established that in order to ensure the correct and high-quality organization of internal audit, it is advisable to provide for the establishment of the internal audit service as a separate subdivision, providing the necessary number of accountants and auditors in the staff. The methodology of the internal audit of payroll has been improved in order to provide a detailed explanation of the content of the audit. The main objects of the internal audit of employee benefit calculations have been singled out. The sequence of the employee benefit calculations audit was determined. The internal auditor's working documents were formed: A statement of selective verification of vacation pay accrual and a Statement of violations revealed during the audit of employee benefit calculations. Using new changes and suggestions will allow the company’s internal audit service to cover all aspects of accounting and reporting on employee benefits. Preparation results of the internal audit of payments to employees in the form of proposed working documents will ensure that the results of the audit correspond to the actual state of Affairs at the enterprise and ensure the availability of information during the next audit. Prospects for further research should be carried out in the direction of developing a regulatory framework for internal audit, taking into account industry specifics affecting the economic activity of the enterprise.

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