scholarly journals Trade openness and FDI in Zimbabwe: What does data tell us?

2015 ◽  
Vol 12 (4) ◽  
pp. 303-311 ◽  
Author(s):  
Kunofiwa Tsaurai
Keyword(s):  
Causal Relation ◽  
Trade Openness ◽  
Trade Policies ◽  
Bounds Testing ◽  
Distributed Lag ◽  
Autoregressive Distributed Lag ◽  
Study Find ◽  
Long Run ◽  
Causality Relationship ◽  
Bounds Testing Approach

The study focus on the causal relation between trade openness and foreign direct investment (FDI) in Zimbabwe. The choice for the country came about due to the consideration that such an area on trade openness and FDI has not been adequately covered in Zimbabwe. In the absence of consensus in the literature about the causal relation between trade openness and FDI, it has been found not to be easy to formulate effective FDI and international trade policies. Scores of researchers have failed to agree on the causality relationship between trade openness and FDI. Some have said trade openness boost FDI inflow while other researchers, though few are of the opinion that it is FDI that accelerates trade openness of the host country. On the other hand, some authors maintain that both FDI and trade openness affect each other whilst others says no relationship exist between the two variables. Using the ARDL (Autoregressive distributed lag)-bounds testing approach, this study find that there is no long run relationship between FDI and trade openness in Zimbabwe.

scholarly journals FDI location and exchange rates. is there really a relationship between the two?

2015 ◽  
Vol 13 (1) ◽  
pp. 642-651
Author(s):  
Kunofiwa Tsaurai
Keyword(s):  
South Africa ◽  
Exchange Rates ◽  
Coming Out ◽  
Causal Relation ◽  
Exact Nature ◽  
Bounds Testing ◽  
Distributed Lag ◽  
Autoregressive Distributed Lag ◽  
Long Run ◽  
Short Run

The exchange rate led foreign direct investment (FDI), FDI led exchange rates and feedback effect hypotheses summarise the literature around the nature of the relationship between FDI and exchange rates. So many authors on this subject over a long period have been found to generally side with of the above-mentioned hypothesis or another without a consensus. Despite this lack of consensus with regard to the exact nature of the causal relation between these two variables, what is coming out clearly from the literature is that there indeed exist a relationship between FDI and exchange rates. The lack of consensus has prompted this current study that used the ARDL (Autoregressive distributed lag)-bounds testing approach. The study revealed the existence of causality from (1) the rand value to FDI in the long run and (2) FDI to the rand value only in the short run in South Africa. The author recommends that policies which strengthen the value of the rand should be put in place in order to attract FDI in the long run. The flow of FDI into South Africa will in turn not only stabilises the value of the rand.

THE EFFECTS OF FINANCIAL DEVELOPMENT ON INVESTMENT IN TURKEY

2016 ◽  
Vol 61 (04) ◽  
pp. 1650002 ◽  
Author(s):  
MEHMET BALCILAR ◽  
SERHAN ÇIFTÇIOĞLU ◽  
HASAN GÜNGÖR
Keyword(s):  
Financial Development ◽  
Composite Index ◽  
Investment Decisions ◽  
Budget Balance ◽  
Bounds Testing ◽  
Distributed Lag ◽  
Autoregressive Distributed Lag ◽  
Long Run ◽  
Causality Tests ◽  
Bounds Testing Approach

Analyzing financial development and investment in Turkey between 1960 and 2008, this paper illustrates how financial development affects investment decisions in a dynamic model of the firm under financial frictions. A composite index is constructed of three alternative financial development measures. The bounds testing approach was used to test for the existence of long-run levels relationships and long-run levels relationships were estimated using the autoregressive distributed lag method. Both short- and long-run causality tests were performed. Results indicate that financial development, budget balance, and total credit to the private sector positively and significantly affect investment.

scholarly journals The Causal Connection between CO2 Emissions and Agricultural Productivity in Pakistan: Empirical Evidence from an Autoregressive Distributed Lag Bounds Testing Approach

2019 ◽  
Vol 9 (8) ◽  
pp. 1692 ◽  
Author(s):  
Abdul Rehman ◽  
Ilhan Ozturk ◽  
Deyuan Zhang
Keyword(s):  
Carbon Dioxide ◽  
Carbon Dioxide Emissions ◽  
Bounds Testing ◽  
Distributed Lag ◽  
Autoregressive Distributed Lag ◽  
Food Grains ◽  
Long Run ◽  
Total Food ◽  
Short Run ◽  
Seed Distribution

The rapid agricultural development and mechanization of agronomic diligence has led to a significant growth in energy consumption and CO2 emission. Agriculture has a dominant contribution to boosting the economy of any country. In this paper, we demonstrate carbon dioxide emissions’ association with cropped area, energy use, fertilizer offtake, gross domestic product per capita, improved seed distribution, total food grains and water availability in Pakistan for the period of 1987-2017. We employed Augmented Dickey-Fuller and Phillips-Perron unit root tests to examine the variables’ stationarity. An autoregressive distributed lag (ARDL) bounds testing technique to cointegration was applied to demonstrate the causality linkage among study variables from the evidence of long-run and short-run analyses. The long-run evidence reveals that cropped area, energy usage, fertilizer offtake, gross domestic product per capita and water availability have a positive and significant association with carbon dioxide emissions, while the analysis results of improved seed distribution and total food grains have a negative association with carbon dioxide emissions in Pakistan. Overall, the long-run effects are stronger than the short-run dynamics, in terms of the impact of explanatory variables on carbon dioxide emission, thus making the findings heterogeneous. Possible initiatives should be taken by the government of Pakistan to improve the agriculture sector and also introduce new policies to reduce the emissions of carbon dioxide.

scholarly journals Violent Crime and Unemployment in Nigeria: An ARDL Bound Test Cointegration.

2019 ◽  
Vol 6 (4) ◽  
pp. 21-24
Author(s):  
Garba Mohammed Guza ◽  
Ahmed Balarabe Musa ◽  
Sunday Elijah
Keyword(s):  
Violent Crime ◽  
Unemployment Rate ◽  
Crime Rates ◽  
Bounds Testing ◽  
Armed Robbery ◽  
Distributed Lag ◽  
Autoregressive Distributed Lag ◽  
Long Run ◽  
Unemployment And Crime ◽  
Bound Test

This study attempts to examine whether there is a long-run relationship existing between crime rates and unemployment in Nigeria for the period 2004 to 2016. The autoregressive distributed lag (ARDL) bounds testing approach was used to determine the cointegration between unemployment and crime rates. The results show that unemployment and crime (murder, armed robbery, robbery, assaults, sexual offense, and cultism) are cointegrated. The empirical findings show that the unemployment rate and violent crime, such as; armed robbery, robbery-murder, assaults, sex violence, and cultism are all cointegrated. The long-run coefficients results indicated that the unemployment rate has a positive and significant effect on murder, sex violence, assaults, and cultism

scholarly journals The Relationship between Economic Development and Fatal Occupational Accidents: Evidence from Turkey

2017 ◽  
Vol 64 (1) ◽  
pp. 19-31 ◽  
Author(s):  
Olcay Çolak ◽  
Serap Palaz
Keyword(s):  
Economic Development ◽  
Occupational Accidents ◽  
Bounds Testing ◽  
Distributed Lag ◽  
Distributed Lag Model ◽  
Autoregressive Distributed Lag ◽  
Long Run ◽  
Short Run ◽  
Lag Model ◽  
The Relationship

Abstract Occupational accidents are among the most important issues of the agenda of working life in Turkey recently. Recently the causes and consequences of occupational accidents which are related to human, occupational and environmental factors have received great attention from the researchers but it has been paid little attention to focused on economic factors. The purpose of this paper is to make a contribution to redressing this gap by examining the relationship between fatal occupational accidents and economic development over the period of 1980 to 2012 for Turkey. In this context, bounds testing approach which is also known as autoregressive distributed lag model is performed. The results indicate the existence of positive relationship between gross domestic product per capita and fatal occupational accidents in the short-run while in the long run this turns out to be in a negative way via economic growth and changes in structure of the economy.

Electricity Consumption–Economic Growth Nexus: Evidence from ARDL Bound Testing Approach in the Tunisian Context

2020 ◽  
pp. 097215092092543 ◽  
Author(s):  
Zouheir Mighri ◽  
Hanen Ragoubi
Keyword(s):  
Economic Growth ◽  
Electricity Consumption ◽  
Bounds Testing ◽  
Distributed Lag ◽  
Autoregressive Distributed Lag ◽  
Long Run ◽  
Causality Tests ◽  
Short Run ◽  
Testing Approach ◽  
Causal Nexus

This article investigates the causal nexus between electricity consumption and economic growth in Tunisia for the period 1971–2013 by using autoregressive distributed lag (ARDL) bounds testing approach of cointegration and Granger causality tests. The empirical findings indicate the existence of a long-term relationship between electricity consumption and economic growth. Besides, they support the conservation hypothesis in the long run, while they confirm the growth hypothesis in the short run.

Does Nominal Devaluation Improve Income Distribution? Evidence from Bangladesh

2012 ◽  
Vol 19 (1) ◽  
pp. 61-77
Author(s):  
Muhammad Shahbaz ◽  
Mohammad Mafizur Rahman
Keyword(s):  
Income Inequality ◽  
Income Distribution ◽  
Trade Openness ◽  
Bounds Testing ◽  
Correction Model ◽  
Distributed Lag ◽  
Long Run ◽  
Short Run ◽  
Auto Regressive ◽  
The Impact

The article aims to investigate the impact of nominal devaluation on income distribution in Bangladesh both in short and long runs. In doing so, Auto Regressive Distributed Lag (ARDL) bounds testing has been employed for cointegration, and Error Correction Model (ECM) has been used for short-run dynamics. The empirical psychology has confirmed the existence of long-run relationship between the variables. Furthermore our estimated results reveal that nominal devaluation tends to decrease income inequality. Though economic growth appears to improve income distribution, non-linear link between both the variables, however, depicts Kuznets’ inverted-U curve (1955). Financial development causes further deterioration in income distribution. Trade openness contributes to income inequality as discussed in Leontief Paradox.

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