scholarly journals RESEARCH ON THE EFFECT OF CHINESE FINANCIAL ACTIVITIES ON SCIENTIFIC AND TECHNOLOGICAL INNOVATION

2020 ◽  
pp. 115-128
Author(s):  
A. Korotkevich ◽  
Xiaoyun Xu ◽  
Ziming Xu
Keyword(s):  
Technological Innovation ◽  
Vector Error Correction Model ◽  
Policy Recommendations ◽  
Financial Industry ◽  
Industrial Upgrading ◽  
Correction Model ◽  
Vector Error Correction ◽  
Vector Error ◽  
New Development ◽  
The Impact

With the continuous development of China's economic level, accelerating industrial upgrading and transformation, building an innovative society has become a new development goal. Financial activities are closely related to economic development. Therefore, studying the impact of China's financial activities on technological innovation is of great significance. This article uses the data indicators in the field of financial activities and technological innovation in China from 2002 to 2018 to construct a vector error correction model (VEC), analyze the implicit correlation between financial activities and technological innovation, and study the promotion of technological innovation by financial activities and put forward policy recommendations to promote the development of China’s financial industry and enhance technological innovation.

scholarly journals The Impact of Bank Indonesia Regulation No. 17/3/2015 on Exchange Rate: Analysis Using Vector Error Correction Model (VECM)

2021 ◽  
Vol 12 (2) ◽  
pp. 131-141
Author(s):  
Muhamad Yudi Setiawan ◽  
Tanti Novianti ◽  
Mukhamad Najib
Keyword(s):  
Exchange Rate ◽  
Error Correction ◽  
Error Correction Model ◽  
Vector Error Correction Model ◽  
Correction Model ◽  
Vector Error Correction ◽  
Vector Error ◽  
Negative Effect ◽  
The Exchange Rate ◽  
The Impact

The weakening of the Rupiah against the US dollar has encouraged Bank Indonesia to issued Bank Indonesia Regulation (Peraturan Bank Indonesia - PBI) No. 17/3/2015. The research aimed to analyze the factors that affected the Rupiah exchange rate, the effect of PBI No. 17/3/2015 on the movement of the Rupiah exchange rate, and the behavior of exchange rate movement to the shocks on the variables that influenced it. The research applied secondary data, namely monthly data from January 2008 to April 2019 taken from reliable sources such as National Development Planning Agency (Bappenas), Bank Indonesia (BI), and Statistics Indonesia (BPS). It was explanatory research with a quantitative approach. The studied data were processed with the Vector Error Correction Model (VECM) method to identify long and short-term effects. The results of the long-term equation show that export-import has a negative effect on the exchange rate. Similarly, inflation has no significant effect on the exchange rate. Then, the money supply has a significantly negative effect on the exchange rate. However, the interest rate of Bank Indonesia positively affects the exchange rate. Next, the implementation of PBI No. 17/3/2015 has a significant and positive impact on the exchange rate. Last, the crisis condition does not affect the changes in exchange rates.

scholarly journals Morocco’s External Performance: An Empirical Assessment of Export Competitiveness Determinants

2020 ◽  
Author(s):  
Sara Labrar ◽  
Adil Elmarhoum
Keyword(s):  
Jel Classification ◽  
Vector Error Correction Model ◽  
Correction Model ◽  
Vector Error Correction ◽  
Sectoral Analysis ◽  
Vector Error ◽  
Export Competitiveness ◽  
Cost Competitiveness ◽  
The Impact ◽  
Do So

Abstract The objective of this article is to study the external competitiveness of Morocco. To do so, we first make a sectoral analysis of Moroccan international trade. This analysis reveals the sectors and products in which Morocco should specialize, as well as the products in which Morocco has a strong export potential. Then, we study the impact of the introduction of price and cost competitiveness indicators in the export's equations of Armington (1969). Using a Vector Error Correction Model (VECM) estimated over the period 1988-2017. The principal results confirm that Moroccan external competitiveness can’t be measured only by the price factor. We also show that the competitiveness is also reflected with other factors like cost of production and quality.JEL Classification : C22, F14, F13, O55

scholarly journals IDENTIFIKASI BANJIR IMPOR KENTANG DAN DAMPAKNYA TERHADAP HARGA DOMESTIK KENTANG DI INDONESIA

2018 ◽  
Vol 2 (2) ◽  
pp. 156-175
Author(s):  
Hadiwiyono Hadiwiyono ◽  
Muhammad Firdaus ◽  
Lukytawati Anggraeni
Keyword(s):  
Error Correction ◽  
Function Analysis ◽  
Error Correction Model ◽  
Vector Error Correction Model ◽  
Domestic Price ◽  
Correction Model ◽  
Vector Error Correction ◽  
Vector Error ◽  
Safeguard Mechanism ◽  
The Impact

Indonesia needed to be cautious of import surge since it has potential to influence import value and price in the era of trade globalization. The main purpose of this reasearch was to examine whether import surge occurred for horticulture commodities in Indonesia, especially for potato. The methods used for identifying occurrence of import surge was based on Special Safeguard Mechanism framework of World Trade Organization which will strengthened with Vector Error Correction Model to analyse the impact of import surge to domestic prices. Based on Special Safeguard Mechanism framework, volume-based Special Safeguard Mechanism triggered in almost all year during 2002-2012 but price-based Special Safeguard Mechanism is not triggered in those years. Based on Impuls Response Function analysis, the impact of import surge shock to domestic price was relatively low but occurred permanently. Based on Forecast Error Variance Decomposition analysis, import surge variables contributed slightly to the domestic price variability but it tend to increased as time. Keywords: Horticulture, Potato, Special Safeguard Mechanism, Import Surge, Vector Error Correction Model

scholarly journals The Impact Of Dividend Payments On Shareholders Wealth: Evidence From The Vector Error Correction Model

2013 ◽  
Vol 12 (11) ◽  
pp. 1451 ◽  
Author(s):  
Johannes De Wet ◽  
Mvita Mpinda
Keyword(s):  
Error Correction ◽  
Market Price ◽  
Error Correction Model ◽  
Vector Error Correction Model ◽  
Correction Model ◽  
Vector Error Correction ◽  
Dividend Payments ◽  
Vector Error ◽  
Long Run ◽  
The Impact

To date, a vast body of research has been established on dividend policy. However, little research has been done on the impact of dividend payments on shareholders wealth while considering the short- and long-run effects. This study is based on a sample of 46 companies listed on the Johannesburg Securities Exchange (JSE) for the period 1995 to 2010. The Vector Error Correction Model (VECM) was used to describe the short-run and long-run dynamics or the adjustment of the co-integrated variables toward their equilibrium values. Results indicate that in the long run, dividend yield is positively related to market price per share, while earnings per share do not have a significant impact on the market price per share.

scholarly journals An Empirical Analysis of The Impact of Islamic Banking on Real Output in Indonesia

2020 ◽  
Vol 11 (2) ◽  
pp. 329-345
Author(s):  
Hadi Sasana ◽  
Deni Ramdani ◽  
Ivo Novitaningtyas
Keyword(s):  
Economic Growth ◽  
Error Correction ◽  
Error Correction Model ◽  
Islamic Banking ◽  
Vector Error Correction Model ◽  
Correction Model ◽  
Vector Error Correction ◽  
Vector Error ◽  
Actual Output ◽  
The Impact

Abstract: The role and contribution of Islamic finance on economic growth in Indonesia has increased gradually and steadily. This is because the Islamic economy's universal and comprehensively basic principle is the primary foundation of Islamic banking. This research aimed to analyze the role of Islamic Banking on Indonesia's real sector during 2007.01 – 2016.04. This study used the Vector Error Correction Model (VECM) as a tool to analyze secondary data. The result showed that in Indonesia, sharia deposit positively and significantly influenced actual output in the short term. In addition, in the long-term, sharia financing positively and significantly influenced actual output. Moreover, Granger Causality Test proved the occurrence of one-way causality between actual output and inflation. Thus, Islamic banking can encourage actual output in Indonesia. The results of this study become a consideration for stakeholders and policymakers to pay more attention to strategies and policies that support economic growth in Indonesia.Abstrak: Perkembangan keuangan syariah di Indonesia semakin meningkat setiap tahunnya. Prinsip-prinsip dasar ekonomi syariah yang universal dan komprehensif merupakan landasan utama perbankan syariah. Tujuan penelitian ini untuk menginvestigasi peran perbankan syariah terhadap sektor riil di Indonesia selama periode 2007.01 – 2016.04. Penelitian ini menggunakan Vector Error Correction Model (VECM) sebagai alat untuk menganalisis data sekunder. Hasil penelitian menemukan bahwa dalam jangka pendek deposito syariah berpengaruh positif dan signifikan terhadap output rill. Selain itu, dalam jangka panjang pembiayaan syariah berpengaruh positif dan signifikan terhadap output riil di Indonesia. Lebih lanjut, Uji Kausalitas Granger membuktikan terjadinya kausalitas satu arah antara output riil dan inflasi. Dengan demikian, perbankan syariah mampu mendorong output riil di Indonesia. Hasil penelitian ini menjadi bahan pertimbangan bagi para pemangku kepentingan dan pengambil kebijakan untuk lebih memperhatikan strategi dan kebijakan yang mendukung pertumbuhan ekonomi di Indonesia.

scholarly journals Détermination Du Seuil De Viabilité De La Position Extérieure Au Maroc: Evaluation Empirique

2018 ◽  
Vol 14 (7) ◽  
pp. 32
Author(s):  
Abdellali Fadlallah ◽  
Zakaria Chakhat
Keyword(s):  
Current Account ◽  
Current Account Deficit ◽  
Vector Error Correction Model ◽  
Correction Model ◽  
Vector Error Correction ◽  
Explanatory Variables ◽  
Vector Error ◽  
Econometric Study ◽  
The Impact ◽  
The Current Account

This paper focuses on addressing question on the sustainability of the Moroccan current account. The purpose of this study is to examine theoretical and empirical determinants of the behaviour of the current account deficit in order to apprehend economic policy decisions. An econometric study was conducted in this sense using a vector error-correction model (VECM) during the period (2004Q1-2013Q4). This technique enabled the capture of the longterm relationship. the impact of explanatory variables on the current account was also examined. The examination of the sustainability threshold calculated by the Reisena method revealed that signs of unsustainability have emerged since 2008, which is in line with the results of MFR. However, it is only in 2011 that the current account exhibits deficits that largely exceed the optimal threshold, exposing the national economy to greater vulnerability.

scholarly journals Vector Error Correction Model on FDI and their Impact in the Republic of Macedonia

2018 ◽  
Vol 21 (2) ◽  
pp. 19-35 ◽  
Author(s):  
Irena Kikerkova ◽  
Elena Naumovska ◽  
Katerina Toshevska-Trpchevska ◽  
Elena Makrevska Disoska
Keyword(s):  
Error Correction ◽  
Growth And Development ◽  
Political Stability ◽  
Error Correction Model ◽  
Current Account Balance ◽  
Vector Error Correction Model ◽  
Correction Model ◽  
Vector Error Correction ◽  
Vector Error ◽  
The Impact

Abstract The subject of this paper is the foreign direct investment (FDI) inflow in Macedonia and its impact upon the economic growth and development of the country. Its basic purpose is to analyse the interconnection of FDI with a number of economic, political and institutional variables in Macedonia. We decided to apply Vector Error Correction Model (VECM) on FDI impact upon the Macedonian economy. The FDI indicator is calculated as a function of certain fundamental economic variables (GDP growth rate, labor productivity rate, openness to trade, current account balance) as well as of Worldwide Governance Indicators (control of corruption, government effectiveness, political stability, regulatory quality and rule of law). Results obtained by the econometric model should provide relevant conclusions on the impact of the up-to-date FDI inflow upon the growth and development of the Macedonian economy.

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