Macroeconomic Determinants of Industrial Development in Nigeria

2016 ◽  
Vol 1 (1) ◽  
pp. 37
Author(s):  
John O. AIYEDOGBON ◽  
Sarah O. ANYANWU
Keyword(s):  
Exchange Rate ◽  
Interest Rate ◽  
Industrial Development ◽  
Price Index ◽  
Manufacturing Sector ◽  
Consumer Price Index ◽  
Production Index ◽  
Industrial Productivity ◽  
Macroeconomic Determinants ◽  
The Impact

<p>The paper focuses on the impact of macroeconomic determinants on industrial productivity in Nigeria for the period, 1981-2013. It was discovered that while the Nigerian government had embarked on a number of industrial development strategies with the sole purpose of boasting industrial productivity in Nigeria, they seem to have yielded little or no result. The macroeconomic variables in the study include industrial production index, exchange rate, consumer price index, interest rate, broad money supply, foreign direct investment, credit to manufacturing sector and gross domestic product. The study employed OLS technique and found that exchange rate exert significant positive impact on industrial productivity in Nigeria.  Also, the impact of interest rate, FDI and real GDP on industrial production index is positive. On the other hand, consumer price index, broad money supply and credit to manufacturing sector exert negative impact on industrial development in Nigeria. The paper recommended that a workable M2 that can enhance credit to manufacturing sector and at the same time control interest rate to boast investment should be determined.</p>

scholarly journals Macroeconomic Dynamics and the Manufacturing Output in Nigeria

2018 ◽  
Vol 9 (2) ◽  
pp. 43-54 ◽  
Author(s):  
Adegbemi Babatunde Onakoya
Keyword(s):  
Exchange Rate ◽  
Interest Rate ◽  
Money Supply ◽  
Inflation Rate ◽  
Manufacturing Sector ◽  
Percent Level ◽  
Negative Relationship ◽  
Preliminary Evaluation ◽  
Macroeconomic Factors ◽  
The Impact

AbstractThis paper examined the impact of the changes in the macroeconomic factors on the output of the manufacturing sector in Nigeria from 1981 to 2015. Preliminary evaluation of the data was conducted using both descriptive statistics and stationarity evaluation. The test indicated that not all the variables are normal. The occurrence of order integration at first level difference necessitated the deployment of the Johansen cointegration test. The findings revealed no short run association among manufacturing output and each of GDP, exchange rate, broad money supply and unemployment rate. Negative relationship existed amongst inflation rate, interest rate, exchange rate, broad money supply on one hand, and manufacturing output. The inflation rate and interest rate, were statistically insignificant. However, significant and positive relationship existed between GDP of the previous year and unemployment on the one hand and manufacturing output on the other, at 5 percent level. The results showed that manufacturing was a veritable engine of economic growth. The post estimation tests showed presence of serial correlation but evidence of heteroscedasticity existed which, made the model inefficient, but its estimator is still unbiased. The study recommended the harmonization of both fiscal and monetary policies for the attainment of macroeconomic stability and avoidance of rapid policy summersaults.

scholarly journals FORMATION OF COMPOSITE GLOBAL COMMODITY PRICES AS AN INFLATION INDICATOR FOR EAST JAVA

2021 ◽  
Vol 2 (2) ◽  
pp. 210-217
Author(s):  
Anisha Wirasti Cahyaningrum
Keyword(s):  
Exchange Rate ◽  
Price Index ◽  
Consumer Price Index ◽  
Relative Weight ◽  
Commodity Prices ◽  
Commodity Price ◽  
Data Availability ◽  
General Will ◽  
The Exchange Rate ◽  
The Impact

With the average contribution of imports to Gross Regional Domestic Product (GRDP) in the last five years reaching 19.1%, the dynamics of global commodity prices also influence the economic performance of East Java, including the movement of inflation. A composite indicator of global commodity prices is needed to find out the impact of changes in various global commodity prices on inflation in East Java. By adopting the Bank Indonesia methodology in forming a composite global price known as the Imported Inflation Price Index (IHIM) which has considered the method of forming a global composite price created by the IMF (IMF Commodity Price Index), the compilation of East Java global price composites also examines the accuracy of commodity selection and aspects of data availability. The selected global price composite for East Java is a composite of seven global commodities which include food (wheat, soybeans, corn and CPO) and non-food (iron, gold and oil). These are two aspects determining the relative weight, namely (I) the import portion of the total input based on the Input-Output table and (ii) the commodity weight of derivatives in the East Java Consumer Price Index (IHK) basket. Furthermore, with OLS regression, the composite of East Java global commodity prices affects the core-traded inflation movement in East Java. Thus, the composite of global commodity prices in East Java can be used as an indicator of East Java inflation projections, especially core-traded inflation. This study, in general, will also examine the effect of the exchange rate impact on the movement of core inflation, especially traded groups in East Java. Based on the regression results it is known that the impact of the exchange rate movement on core traded inflation in East Java is more significant than the effect of world commodity price movements.

scholarly journals The Impact of Macroeconomic Variables on Stock Prices: An Empirical Analysis of Islamabad Stock Exchange

2014 ◽  
Vol 10 (2) ◽  
pp. 73-93
Author(s):  
Nosheen Rasool ◽  
Muhammad Mubashir Hussain
Keyword(s):  
Exchange Rate ◽  
Significant Relationship ◽  
Stock Prices ◽  
Price Index ◽  
Stock Exchange ◽  
Foreign Exchange Reserves ◽  
Macroeconomic Variables ◽  
Production Index ◽  
Long Run ◽  
The Impact

The purpose of this study was to analyze long-run causal relationship between ISE (Islamabad Stock Exchange) and macroeconomic variables in Pakistan and also find out the direction of causality. The impact of macroeconomic variables on stock prices of ISE has not been previously discussed by the researchers. The monthly data from January 2001 to December 2010 was used in this study. The set of macroeconomic variables include Exchange Rate (ER), Foreign Exchange Reserves (FER), Industrial Production Index (IPI), Interest Rate (IR), Imports (M), Money Supply (MS), Wholesale Price Index (WPI) and Exports (X). Descriptive statistics and Unit root test, Johansen Co-integration Technique and Granger Causality Technique were employed to analyze the long-run and causal relationship between the macroeconomic variables and stock prices.  The results revealed that M showed positive and significant relationship but Foreign Exchange Reserves (FER) and Industrial Production Index (IPI) indicated positive and insignificant relationship with the stock prices. Exchange rate(ER), Money supply (MS) and  Whole sale price index(WPI) showed negative but significant relationship while Interest  rate (IR) and Export( X )indicated a negative and insignificant relationship with the stock prices. The findings of Granger Causality revealed that only exports showed a unidirectional causal relationship. 

scholarly journals Evaluation of the Impact of Macroeconomic Variables on Stock Market Performance in Nigeria

2019 ◽  
Vol 5 (2) ◽  
pp. 34 ◽  
Author(s):  
Cordelia Onyinyechi Omodero ◽  
Sunday Mlanga
Keyword(s):  
Exchange Rate ◽  
Interest Rate ◽  
Stock Market ◽  
Price Index ◽  
Market Performance ◽  
Share Price ◽  
Series Data ◽  
Macroeconomic Variables ◽  
Stock Market Performance ◽  
The Impact

Stock market is an essential part of a nation’s economy and requires adequate evaluation of all factors that militate against its performance. This study investigates the role of macroeconomic variables in determining the stock market performance in Nigeria using annual time series data covering a period from 2009 to 2018. These data have been sourced from the World Bank Development Indicators, International Monetary Fund and CBN Statistical Bulletin. The results from the regression analysis indicate that exchange rate and interest rate do not have significant impact on share price index while inflation rate exerts a significant negative influence on share price index. On the contrary and in line with the concept of GDP and stock market performance, GDP significantly and positively impacts on share price index. The study among others suggests that the growth of the economy should be maintained to keep stock market flourishing while macroeconomic variables such as inflation, interest rate and exchange rate should be appropriately regulated by the relevant authorities to curtail all negative influences on stock market performance.

scholarly journals The Influence of Foreign Direct Investment on the GDP Progression of Pakistan

2020 ◽  
Vol 4 (2) ◽  
pp. 22-33
Author(s):  
Muhammad Aslam Javed
Keyword(s):  
Foreign Direct Investment ◽  
Exchange Rate ◽  
Direct Investment ◽  
Price Index ◽  
Trade Openness ◽  
Consumer Price Index ◽  
Annual Data ◽  
Monthly Basis ◽  
Beneficiary Country ◽  
The Impact

The Foreign Direct Investment (FDI) inflows play a very important role in the economic development of the beneficiary country. The objective of this study is to check the impact of the exchange rate (and other variables like Foreign Exchange Rate, Consumer price index, Trade Openness, and Energy Imports) on foreign direct investment in Pakistan by taking annual data from the period 1999-2013 (Monthly Basis).By using Descriptive,Correlation and regression , the effect of Consumer Price Index, exchange rate, trade openness, energy imports on Foreign Direct Investment (FDI) of Pakistan.  The study guide the foreign investor and to categorize the factors, that can affect the Foreign Direct Investment (FDI), while investing in Pakistan.

scholarly journals The Impact of Australian Consumer Price Index on the Exchange Rate of Australian Dollar - Chinese Renminbi

2017 ◽  
Vol 13 (22) ◽  
pp. 12
Author(s):  
Maoguo Wu ◽  
Yue Yu
Keyword(s):  
Exchange Rate ◽  
Exchange Rates ◽  
Price Index ◽  
Consumer Price Index ◽  
Asia Pacific ◽  
Steady Increase ◽  
Australian Dollar ◽  
Chinese Investment ◽  
The Exchange Rate ◽  
The Impact

This paper investigates the impact of Australian consumer price index on Australian dollar - Chinese renminbi exchange rate. As two major economies in Asia Pacific, China and Australia are conducting ever-increasing volume of economic transactions. Massive Chinese investment, particularly in properties, has caused steady increase in Australian consumer price index and the exchange rate of Australian dollar - Chinese renminbi. Recent slowdown of Chinese economic growth and Chinese investment in Australia caused both Australian consumer price index and the exchange rate of Australian dollar - Chinese renminbi to fall significantly. This paper utilizes data from May 2005 to January 2016 and empirically tests the relation between Australian consumer price index and the exchange rate of Australian dollar - Chinese renminbi. In compliance with classical theories of exchange rates, empirical results find that a negative relation exists between Australian consumer price index and the exchange rate of Australian dollar - Chinese renminbi.

scholarly journals Financial factors of stimulating consumer activity to achieve the goals of the country’s national economic security

2019 ◽  
Vol 27 (2) ◽  
pp. 338-352
Author(s):  
Alexander Ya Bystriakov ◽  
Elena M Grigorieva ◽  
Elena V Savenkova
Keyword(s):  
Exchange Rate ◽  
Price Index ◽  
Consumer Price Index ◽  
Food Products ◽  
Economic Security ◽  
Financial Factors ◽  
National Economic ◽  
The Exchange Rate ◽  
The Impact ◽  
National Economic Security

In the context of the sanctions regime, the development of the national economy of Russia should be viewed from the angle of national economic security. The modern sanctions regime has begun and is still based on financial restrictions and prohibitions, which affects the need for a specific monetary policy of the country. In this regard, an important aspect of achieving the goals of national economic security are financial factors. As a methodological approach, the paper uses a descriptive approach to assess the relationship between the impact of the different channels of the transmission mechanism (welfare channel, exchange rate pass-through) and economic variables such as consumer demand. The contribution to the consumer price index of each of the three components is estimated: index of food products, index of non-food products and index of paid services. The significance of the contribution of the index of food products is revealed, which is confirmed by the results of regression analysis of the dependence of consumer prices on the exchange rate. The paper proposes a combination of inflation targeting and industrial production targeting to achieve a more significant effect of monetary policy implementation in the conditions of the sanctions regime and for the purposes of national economic security. Also, taking into account the significant contribution of changes in the exchange rate to the consumer price index, it is proposed to pay more attention to the impact of the Bank of Russia on the exchange rate.

scholarly journals THE IMPACT OF MONETARY POLICY ON THE ECONOMIC GROWTH OF KUWAIT FOR THE PERIOD OF 1980-2020

2021 ◽  
Vol 3 (9) ◽  
pp. 01-14
Author(s):  
Nor Asmat Ismail
Keyword(s):  
Economic Growth ◽  
Monetary Policy ◽  
Exchange Rate ◽  
Interest Rate ◽  
Money Supply ◽  
Price Index ◽  
Consumer Price Index ◽  
Policy Instruments ◽  
Real Gdp ◽  
The Government

The government of Kuwait has shifted its focus from the dependence on oil and has concentrated on applying a long-term strategic vision that seeks to recover the economy and raise the citizens’ standard of living. To accomplish these objectives, monetary policy should be formulated appropriately by the government. However, it seems that the effects of monetary policy instruments on the economic growth of Kuwait are not obvious. Therefore, the main purpose of this study is to empirically explore the effect of monetary policy on Kuwaiti economic growth. This research uses annual time series data on real GDP, exchange rate, broad money supply (M2), consumer price index, and deposit interest rate over the period (1980 - 2020) and applies Vector Error Correction Model (VECM). The results of the empirical analysis show the presence of a long-run relationship between real Gross Domestic Product and monetary policy instruments. Specifically, it finds that broad money supply (M2), deposit interest rate, and consumer price index affect economic growth positively and statistically significant. While the exchange rate affects real Gross Domestic Product negatively and statistically insignificant. The Granger causality test based on VECM shows two unidirectional causal relationships running from broad money supply and consumer price index to real GDP in the short run. Thus, the study suggests that policymakers concentrate on improving the economy by managing interest rates and maintain supporting environment for sustainable economic growth and development.

scholarly journals INFLATION PERSISTENCE IN NORTH SUMATERA PROVINCE

2020 ◽  
Vol 3 (1) ◽  
Author(s):  
Wily Julitawaty
Keyword(s):  
Exchange Rate ◽  
Interest Rate ◽  
Gross Domestic Product ◽  
Error Correction ◽  
Price Index ◽  
Inflation Rate ◽  
Consumer Price Index ◽  
Secondary Data ◽  
Output Growth ◽  
Domestic Product

The purpose of this study was to determine the persistence of inflation in major North Sumatera Province in 2007 until 2012 and value contributed Output Growth  (GDP) of North Sumatera, Exchange Rate, Interest Rate and Error Correction Term about Inflation in North Sumatera. Data is used secondary data from general Consumer Price Index  (CPI) from North Sumatera Province include Medan, Pematangsiantar, Sibolga and Padangsidempuan monthly of January 2007 until December 2012. And secondary data Consumer Price Index  (CPI) of North Sumatera Province, Gross Domestic Product of  Province Sumatera Utara, Exchange Rate and Interest Rate of BI Rate yearly of 1999 until 2012. Model is used model econometric with Autoregressive method and Error Correction Model. Result of this research with estimation of  VAR model concludes that degree of persistence of 4 town from North Sumatera Province is low. Result of estimation of model ECM concludes that Interest Rate significantly affect to inflation rate, while Gross Domestic Product of  North Sumatera Province and Exchange Rate not significantly affect to inflation rate. While ECT becomes significant correction to variable inflation rate. Where the form of error correction in the ECM suggests a long-term relationship between the variables inflation, GDP variable, the variable exchange rate and variable interest rate is comparable.

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