scholarly journals Factors affecting stock market index volatility: Empirical study

2021 ◽  
Vol 10 (3) ◽  
pp. 169-176
Author(s):  
Mohammed Ali Al-Rimawi ◽  
Thair Adnan Kaddumi
Keyword(s):  
Economic Growth ◽  
Growth Rate ◽  
Interest Rate ◽  
Stock Market ◽  
Foreign Investment ◽  
Inflation Rate ◽  
Market Price ◽  
Economic Growth Rate ◽  
Macroeconomic Variables ◽  
The Impact

How is stock market price volatility affected, and what is the nature of the impact that macroeconomic variables do on the stock market price direction? The main objective of this study is to investigate the impact of some selected macroeconomic variables (inflation rate (INR), interest rate (IR), economic growth rate (EGR), and foreign investment (FI)) on Amman Stock Exchange (ASE) fluctuation for the period 1999–2018. The information is based on the annual data published by industrial companies listed at ASE. The study adopted a descriptive-analytical approach, also simple and multiple linear regression analysis was employed for the mentioned purpose (Nurfadilah & Samidi, 2017). The results revealed that there is no statistically significant impact of INR, IR, EGR, and FI collectively on ASE performance (Niewińska, 2020). Individually, the results indicated that there is a statistically significant impact of all variables (INR, IR, EGR, and FI) on ASE performance. Additionally, the results concluded that foreign investment, portrayed the highest impact factor on ASE performance, followed by a change in average interest rate, then inflation rate, and the least impact attributes to the economic growth rate. Finally, the research recommends that Jordanian banks should reduce the lending interest rate to enhance investment in securities and improve economic growth rate, also Jordanian authorities should encourage foreign direct and indirect investment and make more efforts to attract more foreign investment, either in the form of tax incentives or by extending finance at low-interest rates.

scholarly journals Economic Interactions among Stock Market Performance and Macroeconomic Variables with Mediating Role of Gold Prices Volatilities: An Evidence from Pakistan

2021 ◽  
Vol 7 (3) ◽  
pp. 383-394
Author(s):  
Rukhsana Rasheed ◽  
Mazhar Nadeem Ishaq ◽  
Rabia Anwar ◽  
Mehwish Shahid
Keyword(s):  
Exchange Rate ◽  
Interest Rate ◽  
Stock Market ◽  
Inflation Rate ◽  
Market Performance ◽  
Stock Market Index ◽  
Macroeconomic Variables ◽  
Market Index ◽  
Stock Market Performance ◽  
The Impact

In all emerging economies, one of the most challenging issues for investors is the multifaceted inter-relationship between volatility of gold prices and stock market index. During the COVID-19 sub-periods, gold has shown a strong hedging behavior against stock market performance. The main objective of this study was to quantify the long-run relationship among multiple independent macroeconomic variables (predictors) on stock market index (response variable) using the volatilities of gold prices as a mediator factor. This study applied the descriptive statistics, correlation, t-test and OLS multiple regression Model. The specific data comprised of period 2011-2020 regarding the fluctuations in gold prices, exchange rate, interest rate, inflation rate and performance of stock market index has been utilized. The statistical outputs of models showed that exchange rate (Dollar to PKR) was positively affecting the performance of Karachi Stock Exchange (KSE)-100 Index, whereas inflation rate and interest rate were negatively affecting the overall performance of KSE100 index. The findings of this study suggested that to achieve better performance of stock market, relatively low interest rate and inflation rate contribute a significant role. However, to increase the generalization capabilities of this study the impact of mentioned macroeconomic variables in other sectors like industrial production, oil & gas and energy sectors with wider time span can be more helpful.

scholarly journals Impact of COVID-19 on Performance of Pakistan Stock Exchange

2020 ◽  
Author(s):  
Shehar Yar Ahmed
Keyword(s):  
Economic Growth ◽  
Interest Rate ◽  
Stock Market ◽  
Inflation Rate ◽  
Stock Exchange ◽  
Country Level ◽  
Cross Country ◽  
The Impact

The objective of this study is to determine the impact of COVID-19 on the performance of Pakistani Stock Market. This study uses the data of COVID-19 related positive cases, fatalities, recovers and the closing prices of PSX 100 index of the first half of 2020. The findings of the study suggest that only COVID-19 recoveries are influencing the performance of the index and the daily positive cases and fatalities are insignificantly related to the performance. Further studies can be performed by incorporating other variables such as economic growth, interest rate and inflation rate along with the COVID-19 related variables at a cross-country level.

scholarly journals Determinants of Inflation in Palestine

2018 ◽  
Vol 1 (3) ◽  
pp. 68-93
Author(s):  
Bahaaeddin Alareeni ◽  
Nariman Qdeh ◽  
Mohammed Lulu
Keyword(s):  
Economic Growth ◽  
Growth Rate ◽  
Exchange Rate ◽  
Interest Rate ◽  
Unemployment Rate ◽  
Inflation Rate ◽  
Gaza Strip ◽  
Economic Growth Rate ◽  
Inflation Rates ◽  
Palestinian Economy

This study aimed at identifing the most important determinants and economic factors affecting inflation rates in the Palestine during the period (2000-2014), in order to help in reducing its effects on the Palestinian economy. The descriptive and analytical approach was used, by selecting a set of variables that were expected to have an impact on the inflation rates in the Palestinian economy, as these factors were such as economic growth rate, interest rate, exchange rate, unemployment rate, money supply, wages, inflation rate in Israel, and the global inflation rate. Two statistical models were developed for West Bank and Gaza Strip separately, based on quarter time series data for determinants of inflation in the Palestinian economy for the period from 2000-2014. The results showed the significatnt impact of: (the exchange rate, the Israeli inflation rate, the economic growth rate) on the inflation rate in the West Bank. In addition, it showed the significant effect of: (global inflation rate, unemployment rate, the economic growth rate) on the inflation rate in Gaza Strip. The other variables: credit facility, wage rate and interest rate were statistically insignificant. In light of this, the study recommended the necessity of issuing a national currency to reduce the losses of the Palestinian economy due to the absence of the national currency, as well as the pressure of imports and trying to find local alternatives by supporting the national product, as well as the need to review trade and economic policies between the Palestinian Authority and Israel to serve the development of the Palestinian economy.

scholarly journals Stress Testing of Banking Systems: an examination against the Shocks of Macroeconomic Variables

2021 ◽  
Vol 9 (SPE1) ◽  
Author(s):  
Kamiar Askari ◽  
Fatemeh Sarraf ◽  
Roya Darabi ◽  
Fatemeh Zandi
Keyword(s):  
Economic Growth ◽  
Growth Rate ◽  
Exchange Rate ◽  
Unemployment Rate ◽  
Inflation Rate ◽  
Gdp Growth ◽  
Economic Growth Rate ◽  
Macroeconomic Variables ◽  
Gdp Growth Rate ◽  
Default Rates

In the past years, overdue due receivables of the banks have increased in an unprecedented way compared to all the facilities granted in Iran’s banking network, showing the not very acceptable quality of bank assets that decrease the bank credit and make them financially unstable. The macroeconomic variables in this article are as follow: GDP growth rate, economic growth, exchange rate, inflation rate, unemployment rate, government debt. The decrease in this amount of arrears shows the ability of banks to maintain their resources. At this research, after identifying the macroeconomic variables affecting the default of banks using the stress test and applying one standard deviation with the help of the historical scenario, the study examined the banks’ resilience to the shocks of these variables from 2006 to 2019. The results indicated that the shock of the economic growth rate had the greatest effect. In other words, the decrease in the economic growth rate had the greatest effect on the increase of borrowers’ default rates. In addition to this, shocks of economic growth and government debt have highly effect on the borrowers’ default rates and inflation rate, unemployment rate, GDP growth rate and exchange rate have a significant impact upon borrowers’ default rates.

scholarly journals Influence of corruption on economic growth rate and foreign investment

2008 ◽  
Vol 63 (4) ◽  
pp. 547-550 ◽  
Author(s):  
Boris Podobnik ◽  
Jia Shao ◽  
Djuro Njavro ◽  
Plamen Ch. Ivanov ◽  
H. E. Stanley
Keyword(s):  
Economic Growth ◽  
Growth Rate ◽  
Foreign Investment ◽  
Economic Growth Rate

scholarly journals The Impact of Macroeconomic Variables on Sectoral Indices in Indonesia

ETIKONOMI ◽  
2017 ◽  
Vol 16 (1) ◽  
pp. 71-80 ◽  
Author(s):  
Bambang Sutrisno
Keyword(s):  
Exchange Rate ◽  
Interest Rate ◽  
Inflation Rate ◽  
Emerging Market ◽  
Estimation Method ◽  
Least Square ◽  
Series Data ◽  
Macroeconomic Variables ◽  
The Interest Rate ◽  
The Impact

This study aims to examine the effect of macroeconomic variables on sectoral indices in the Indonesian Stock Exchange. The difference in sensitiveness among sectors is an interesting issue to investigate this relationship in an emerging market, such as Indonesia. This study employs ordinary least square (OLS) as an estimation method with monthly time-series data from January 2005 to December 2014. The results document that the interest rate, inflation rate, and exchange rate simultaneously have a significant effect on sectoral indices in Indonesia. The interest rate partially shows a significant negative influence on all sectors except basic industry and chemical, finance, infrastructure, utilities, and transportation, and miscellaneous industry sectors. The inflation rate partially has no significant effect on all sectors. The exchange rate partially has a significant negative impact on all industries.DOI: 10.15408/etk.v16i1.4323

scholarly journals The Evolution of Economic Activity in the Rural Area of Region 2 South - East

2021 ◽  
Vol 95 ◽  
pp. 01007
Author(s):  
Daniela – Lavinia Balasan ◽  
Dragoş Horia Buhociu
Keyword(s):  
Economic Growth ◽  
Growth Rate ◽  
Economic Development ◽  
Economic Activity ◽  
Labour Force ◽  
Standard Of Living ◽  
Economic Growth Rate ◽  
Current State ◽  
Per Capita ◽  
The Impact

When we talk about economic development, we can refer to improve the standard of living and the prosperity of the population. This is due by increasing per capita income. In order to analyze economic activity, severe indicators must be studied, namely productivity, economic growth rate, labour force share, gross domestic product. In order to carry out as accurate an analysis as possible, it is required to discover the bottlenecks and problems that Region 2 South East makes and to develop a set of reservations and indications leading to the reduction and, why not, the removal of negative aspects. The main purpose of this work is to achieve a strategic plan by studying the current state and the impact of the economic system in recent times in all its forms, with a view to the development of the countryside of Region 2 South – East. I set out to create a website based on the advice of small rural entrepreneurs that evolves gathering information in realistically identifying all the strengths and concentrating them in the region’s potential innovation.

The Effect of Macroeconomic Conditions on the Performance of Vietnamese Stock Market

2021 ◽  
Vol 8 (12) ◽  
pp. 73-82
Author(s):  
Hien-Ly Pham ◽  
Ching-Chung Lin ◽  
Shih-Ju Chan
Keyword(s):  
Exchange Rate ◽  
Interest Rate ◽  
Stock Market ◽  
Inflation Rate ◽  
Stock Exchange ◽  
Global Supply Chain ◽  
Gold Price ◽  
Monthly Data ◽  
Macroeconomic Conditions ◽  
The Impact

Vietnam plays an important role in the global supply chain. As one of important emerging markets, many studies have focused on Vietnam-related issues. Vietnam established two stock markets in 2000s. The market performance becomes one of interesting issues to explore. This study is to investigate the impact of macroeconomic variables, including inflation rate, exchange rate, interest rate, imports, exports, and gold price, on Ho Chi Minh stock market. The study period is from July 2000 to October 2014. Using the monthly data collected from Vietnam General Statistic Office, IMF International Financial Statistics, and Ho Chi Minh stock exchange, the empirical findings of our regression model show that there exists a positive relationship for imports and gold price, while the relationships for exchange rate and interest rate are negative. No significant relationship has been found for the variables of inflation rate and exports.

The Impact of Defense Investment on Economic Growth in the Perspective of Time Series

2014 ◽  
Vol 5 (4) ◽  
pp. 44-58
Author(s):  
Bin Pan ◽  
Shih-Yung Wei ◽  
Xuanhua Xu ◽  
Wei-Chiang Hong
Keyword(s):  
Economic Growth ◽  
Growth Rate ◽  
Private Investment ◽  
Investment Risk ◽  
Demand And Supply ◽  
Economic Growth Rate ◽  
Proposed Model ◽  
Endogenous Growth Model ◽  
The Impact ◽  
The Relationship

By considering the demand and supply effects of defense investment and the uncertainty of the stochastic process of the production and defense investment, this study proposes a stochastic endogenous growth model to explore the impact of defense investment on economic growth. The results suggest that the relationship between defense investment and economic growth rate is nonlinear and obtains the optimal percentage of defense investment to maximize economic growth. Moreover, the impact of defense investment volatility on economic growth rate is subject to production and defense investment interference term's covariance and representative private investment risk preference. Finally, the empirical data are used to illustrate the applicability of the proposed model.

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