scholarly journals The Impact of Remittances on the Import Demand Function in Jordan: An ARDL Bounds Testing Approach

2018 ◽  
Vol 14 (10) ◽  
pp. 304
Author(s):  
Al-Abdulrazag Bashier
Keyword(s):  
Demand Function ◽  
Statistical Tests ◽  
Negative Relationship ◽  
Import Price ◽  
Import Demand ◽  
Economic Activities ◽  
Bounds Testing ◽  
Long Run ◽  
The Impact ◽  
Adf Test

The present study investigates the short- and long-run relationships between Jordan’s aggregate import demand function and its macroeconomic determinants, in addition to remittances. The study employs the autoregressive distributed lagged (ARDL) model to estimate the import function over the period 1975–2016. The preliminary statistical tests, the ADF test, confirmed that none of the variables is integrated of order 2, while the bounds testing provided evidence of the existence of a long-run equilibrium relationship between the included variables. Moreover, the diagnostic tests showed that the estimated model is free of the statistical problems. The long-run results indicated that remittances, inflation rate, and investment have a direct relationship with imports, whereas the import price index and FDI have a negative relationship. Based on these results, the study suggests that policymakers implement inflation reduction policies, increase the level of economic activities, and promote remittances inflows since they are mostly directed to investment.

scholarly journals The Impact of Financial Innovation on the Money Demand Function: An Empirical Verification in India

2020 ◽  
Vol 14 (1) ◽  
pp. 28-61 ◽  
Author(s):  
Masudul Hasan Adil ◽  
Neeraj Hatekar ◽  
Pravakar Sahoo
Keyword(s):  
Money Demand ◽  
Demand Function ◽  
Financial Innovation ◽  
Jel Classification ◽  
Parameter Estimates ◽  
Correlated Errors ◽  
Bounds Testing ◽  
Money Demand Function ◽  
Long Run ◽  
The Impact

Traditional money demand functions are often criticized for persistent over-prediction, implausible parameter estimates, highly serially correlated errors and unstable money demand. This study argues that some of these problems may have emerged for the lack of factoring financial innovation into the money demand function. This study estimates money demand for India during the post-reform period, from 1996:Q2 to 2016:Q3. The money demand function is estimated with the linear ARDL approach to cointegration developed by Pesaran, Shin, & Smith (2001), Bounds testing approaches to the analysis of level relationships, Journal of Applied Econometrics, 16(3), 289–326, after employing various proxies for financial innovation. In conclusion, the study finds that there is a stable long-run relationship among variables, such as real money balances, and the scale and opportunity cost variables. In a nutshell, the study assesses the relative importance of financial innovation variables in the money demand equation, and finds that financial innovation plays a very significant role in the money demand specification and its stability. JEL Classification: E41, E44, E42, E52, O16, O53

An Empirical Investigation of the Disaggregated Import Demand Function: Non-linear ARDL Framework

2021 ◽  
pp. 001573252199516
Author(s):  
Khyati Kathuria ◽  
Nand Kumar
Keyword(s):  
Demand Function ◽  
Time Series Data ◽  
Import Demand ◽  
Series Data ◽  
Ardl Model ◽  
Relative Prices ◽  
Stable Relationship ◽  
Long Run ◽  
Non Linear ◽  
The Impact

The article estimates the disaggregated import demand function for India using annual time series data for the period 1995–2017. The empirical results reveal strong evidence of long-run stable relationship among the variables considered in the study. The disaggregated import demand function is estimated for India using linear and non-linear ARDL model. The estimated linear ARDL model shows that gross capital formation, exports and relative prices affect import demand positively and significantly, both in the short and long run. While the impact of final consumption expenditure was found to be insignificant in the short run, it affects import demand significantly and positively in the long run. On the other hand, the result of the non-linear ARDL model shows the evidence of asymmetry in the impact of relative prices (positive and negative changes) on import demand, both in the short and long run. JEL Codes: F41, B17, B41, C51

scholarly journals Estimating Elasticity Function of Jordanian Aggregate Import Demand

2016 ◽  
Vol 4 (2) ◽  
pp. 33
Author(s):  
Mohamed Ibrahim Mugableh
Keyword(s):  
Demand Function ◽  
Policy Design ◽  
Exchange Rate Policy ◽  
Import Demand ◽  
Bounds Testing ◽  
Relative Prices ◽  
Long Run ◽  
Ardl Approach ◽  
Rate Policy ◽  
Bounds Testing Approach

This article estimates aggregate import demand function for Jordan using three fully co-integrating regressions over the (1980−2015) period. The bounds testing approach has been employed to test co-integration, while ARDL approach is used to analyze long-run elasticities. The results show a co-integration phenomenon among variables when import volume is dependent variable. In addition, the estimated long-run elasticities of import demand with respect to income and relative prices are 1.16 and -1.03, respectively. The understanding of import demand behavior is crucial for significant import forecasts, international trade planning, and exchange rate policy design.

scholarly journals Work productivity in the sector of knowledge intensive services in relation to work productivity in the manufacturing industry

2021 ◽  
Vol 10 (4) ◽  
pp. 4-8
Author(s):  
Jaromír Vrbka ◽  
Zuzana Rowland ◽  
Lukáš Frýd
Keyword(s):  
Manufacturing Industry ◽  
Negative Impact ◽  
Work Productivity ◽  
Value Added ◽  
Support Service ◽  
Economic Activities ◽  
Long Run ◽  
Positive Shock ◽  
The Impact ◽  
Adf Test

The manufacturing industry represents the most important part of gross output in the Czech Republic. In the long run, it is necessary for the Czech industry to be competitive. At the same time, it can be assumed that foreign pressure on the Czech manufacturing industry will at least partially transform into pressure on professional and scientific activities. Science and research thus play a key role. The aim of the article is to analyse the impact of work efficiency in the branch of professional, scientific, technical, administrative and support service activities (i.e. sections M and N of the CZ NACE classification of economic activities) on the manufacturing industry (section C). Productivity is measured as gross value added to the labor. The quarterly data of the Czech Statistical Office for the period 1995-2020 are used for the analysis. Time series are processed using a Census X12 filter; all variables are tested using the ADF test in two variants for the presence of a unit root. The testing of the long-term relationship is conducted by means of the Johansen test. The results show that both productivity delays in sector C and sectors M and N have a statistically significant impact on productivity in sector C. However, a positive productivity shock in sector C has a negative impact on current productivity and, conversely, a positive shock in productivity in branch M + N in t-1 is positively reflected in branch C at time t.

scholarly journals The Impact Of Inflation On Financial Sector Development: Experience From Zambia

2012 ◽  
Vol 28 (6) ◽  
pp. 1497 ◽  
Author(s):  
Nicholas M. Odhiambo
Keyword(s):  
Financial Development ◽  
Government Expenditure ◽  
Negative Relationship ◽  
Financial Sector ◽  
Bounds Testing ◽  
Financial Sector Development ◽  
Long Run ◽  
Negative Effect ◽  
Short Run ◽  
The Impact

This study examines the impact of inflation on financial development in Zambia during the period between 1980 and 2011. The study attempts to answer two critical questions: 1) Is there a long-run relationship between inflation and financial sector development in Zambia? 2) Does inflation in Zambia have any negative effect on financial sector development? The study uses the recently developed ARDL-bounds testing approach to examine this linkage. In order to address the problem of omission of variable bias, the study incorporates other variables, such as government expenditure, trade volume and GDP per capita in the financial development model, alongside inflation thereby, creating a simple multivariate model. Using the domestic credit to the private sector as a proxy for financial development, the study finds that there is a long-run relationship between inflation and financial development in Zambia. The study also finds that there is a distinctively negative relationship between inflation and financial development. The results apply, irrespective of whether the model is estimated in the short run or in the long run.

Measuring Effectiveness Of Economic Growth On Reducing Infant Mortality Rate In Tamilnadu

2019 ◽  
Vol 118 (4) ◽  
pp. 129-141
Author(s):  
Mr. Y. EBENEZER
Keyword(s):  
Economic Growth ◽  
Mortality Rate ◽  
Infant Mortality ◽  
Negative Relationship ◽  
Infant Mortality Rate ◽  
Domestic Product ◽  
Per Capita ◽  
The Impact ◽  
Adf Test ◽  
Bound Test

                   This paper deals with economic growth and infant mortality rate in Tamilnadu. The objects of this paper are to test the relationship between Per capita Net State Domestic Product and infant mortality rate and also to measure the impact of Per capita Net State Domestic Product on infant mortality rate in Tamil Nadu. This analysis has employed the ADF test and ARDL approach. The result of the study shows that IMR got reduced and Per capita Net State Domestic Product increased during the study period. This analysis also revealed that there is a negative relationship between IMR and the economic growth of Tamilnadu. In addition, ARDL bound test result has concluded that per capita Net State Domestic Product of Tamilnadu has long run association with IMR.

scholarly journals Economic Development, CO2 Emissions and Energy Use Nexus-Evidence from the Danube Region Countries

Energies ◽  
2021 ◽  
Vol 14 (11) ◽  
pp. 3165
Author(s):  
Eva Litavcová ◽  
Jana Chovancová
Keyword(s):  
Economic Growth ◽  
Energy Consumption ◽  
Co2 Emissions ◽  
Carbon Emissions ◽  
Bounds Testing ◽  
Mutual Cooperation ◽  
Long Run ◽  
Short Run ◽  
Danube Region ◽  
The Impact

The aim of this study is to examine the empirical cointegration, long-run and short-run dynamics and causal relationships between carbon emissions, energy consumption and economic growth in 14 Danube region countries over the period of 1990–2019. The autoregressive distributed lag (ARDL) bounds testing methodology was applied for each of the examined variables as a dependent variable. Limited by the length of the time series, we excluded two countries from the analysis and obtained valid results for the others for 26 of 36 ARDL models. The ARDL bounds reliably confirmed long-run cointegration between carbon emissions, energy consumption and economic growth in Austria, Czechia, Slovakia, and Slovenia. Economic growth and energy consumption have a significant impact on carbon emissions in the long-run in all of these four countries; in the short-run, the impact of economic growth is significant in Austria. Likewise, when examining cointegration between energy consumption, carbon emissions, and economic growth in the short-run, a significant contribution of CO2 emissions on energy consumptions for seven countries was found as a result of nine valid models. The results contribute to the information base essential for making responsible and informed decisions by policymakers and other stakeholders in individual countries. Moreover, they can serve as a platform for mutual cooperation and cohesion among countries in this region.

scholarly journals Observing the silent world under COVID-19 with a comprehensive impact analysis based on human mobility

2021 ◽  
Vol 11 (1) ◽  
Author(s):  
Shaobin Wang ◽  
Yun Tong ◽  
Yupeng Fan ◽  
Haimeng Liu ◽  
Jun Wu ◽  
...  
Keyword(s):  
Impact Analysis ◽  
Human Mobility ◽  
Economic Activities ◽  
Underdeveloped Countries ◽  
Mobility Data ◽  
Long Run ◽  
Level Of Economic Development ◽  
Human World ◽  
Dynamic Relationships ◽  
The Impact

AbstractSince spring 2020, the human world seems to be exceptionally silent due to mobility reduction caused by the COVID-19 pandemic. To better measure the real-time decline of human mobility and changes in socio-economic activities in a timely manner, we constructed a silent index (SI) based on Google’s mobility data. We systematically investigated the relations between SI, new COVID-19 cases, government policy, and the level of economic development. Results showed a drastic impact of the COVID-19 pandemic on increasing SI. The impact of COVID-19 on human mobility varied significantly by country and place. Bi-directional dynamic relationships between SI and the new COVID-19 cases were detected, with a lagging period of one to two weeks. The travel restriction and social policies could immediately affect SI in one week; however, could not effectively sustain in the long run. SI may reflect the disturbing impact of disasters or catastrophic events on the activities related to the global or national economy. Underdeveloped countries are more affected by the COVID-19 pandemic.

An Empirical Analysis of Aggregate Import Demand Function for India

2017 ◽  
Vol 17 (4) ◽  
pp. 20170049
Author(s):  
Bibhuti Ranjan Mishra ◽  
Asit Mohanty
Keyword(s):  
Foreign Exchange ◽  
Demand Function ◽  
Import Demand ◽  
Likelihood Method ◽  
Domestic Activity ◽  
Relative Prices ◽  
Distributed Lag ◽  
Long Run ◽  
Cointegration Tests ◽  
The Stability

This paper examines the behaviour of Indian aggregate imports during the period 1980–81 to 2013–14. The stability of aggregate import demand function is examined using five types of cointegration tests including the ARDL bounds test. In order to estimate the long-run elasticities, we have applied three alternative fully efficient cointegrating regressions, autoregressive distributed lag (ARDL) model and Johansen maximum likelihood method. Our results reveal cointegration relationship between import demand, relative prices of import, domestic activity and foreign exchange reserves. Results evince that, in the long-run, the response of import demand to relative import prices is negative and less than unity, whereas it’s response to domestic activity/income is positive and more than unity. The foreign exchange reserve has a positive effect on imports.

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