scholarly journals Is the relationship between corruption and domestic investment non-linear in Nigeria? Empirical evidence from quarterly data

2021 ◽  
Vol 39 (3) ◽  
Author(s):  
Nurudeen Abu ◽  
Mohd Zaini Abd Karim
Keyword(s):  
Empirical Evidence ◽  
Inflation Rate ◽  
Estimation Method ◽  
Oil Prices ◽  
Domestic Investment ◽  
Quarterly Data ◽  
Estimation Techniques ◽  
Non Linear ◽  
Corruption Index ◽  
The Relationship

This study employs the ARDL estimation method to investigate whether corruption and domestic investment relationship is non-linear in Nigeria using quarterly data over the 1996-2019 period. Other alternative estimation techniques such as the CCR, DOLS and FMOLS were used to check for consistency of the results. The results demonstrate that corruption-domestic relationship is non-linear. Although domestic investment reduces with an improvement in the corruption index (reducing corruption), a further reduction in corruption raises the domestic investment. Other significant determinants of domestic investment include income level, oil prices and inflation rate. Based on these outcomes, this study recommends policies to reduce corruption to raise domestic investment.

scholarly journals Dynamic Analysis for Measuring the Impact of Remittance Inflows on Inflation: Evidence From Georgia

2021 ◽  
Vol 12 (1) ◽  
pp. 339
Author(s):  
Azer Dilanchiev ◽  
Aligul Aghayev ◽  
Md. Hasanur Rahman ◽  
Jannatul Ferdaus ◽  
Araz Baghirli
Keyword(s):  
Policy Making ◽  
Inflation Rate ◽  
Explanatory Variable ◽  
Critical Role ◽  
Quarterly Data ◽  
Independent Variables ◽  
Long Run ◽  
Short Run ◽  
The Impact ◽  
The Relationship

Remittance plays a critical role for small economies like Georgia as an unusual means of financing. In policy-making decisions, an understanding of the essence of the relationship between the amount of money exchanged and inflation is important. The paper studies the impact of remittance inflows, using quarterly data spanning a period (2000-2018), on the inflation rate in Georgia. The paper revealed that all independent variables have an effect on the long-run inflation rate; long-run inflation is positively associated with the leading explanatory variable remittance, and no relation is found in the short-run between remittance and inflation. The paper found that inflation's adjustment level to its equilibrium is 12% annually.

scholarly journals The Impact of Oil Prices on the G7’s Inflation Rate: An Econometric Study for the Period (1986-2016)

2017 ◽  
Vol 9 (6) ◽  
pp. 167 ◽  
Author(s):  
Hmood Humaidi Banikhalid
Keyword(s):  
Inflation Rate ◽  
Oil Prices ◽  
Price Levels ◽  
Econometric Study ◽  
The Impact ◽  
The Relationship

The study aims at determining the impact of oil prices on the G7 inflation rate, and examining the nature of that impact, whether negative or positive, if existed, during the period from November 1986 to October 2016.The study found that there is a statically significant impact of the oil prices on the G7 inflation rate, and that the relationship between the two variables is not linear: the rate of inflation is affected by oil pricesat price levels below (34.5)$ per barrel negatively. And after this level, the relationship turns positive.

E-money and Stock: Empirical Evidence from Indonesia and Thailand

2021 ◽  
Vol 10 (1) ◽  
pp. 139-148
Author(s):  
Hasdi Aimon ◽  
Sri Ulfa Sentosa ◽  
Moh. Ridha Mahatir
Keyword(s):  
Central Bank ◽  
Least Squares ◽  
Empirical Evidence ◽  
Two Stage ◽  
Quarterly Data ◽  
Indonesian Government ◽  
Technological Developments ◽  
Two Stage Least Squares ◽  
The Relationship

E-money is a type of electronic or digital payment that replaces cash payments. These technological developments will have an impact on reducing the use of cash. The use of e-money possibly affects stock, which is a form of securities. Therefore, the purpose of this study is to assess the relationship between e-money and stock. The study uses the two-stage least squares model to analyze quarterly data for 2011Q1-2019Q4. The study found no relationship between stock and e-money in Indonesia, whereas, in Thailand, there was a relationship between stock and e-money. There is no relationship between e-money and stock in Indonesia and Thailand. The study recommends the Indonesian government or central bank adopt the policies that Thailand has implemented in stock that affects e-money. Stocks can affect the use of e-money due to the profits or losses of the stock that will impact the use of e-money.JEL Classification: D53, E40How to Cite:Aimon, H., Sentosa, S. U., & Mahatir, M. R. (2021). E-money and Stock: Empirical Evidence from Indonesia and Thailand. Signifikan: Jurnal Ilmu Ekonomi, 10(1), 139-148. https://doi.org/10.15408/sjie.v10i1.15380.

scholarly journals Inflation Thresholds and Stock Market Development: Evidence of the Nonlinear Nexus From an Emerging Economy

2019 ◽  
Vol 11 (1) ◽  
pp. 447
Author(s):  
Noura Abu Asab ◽  
Alaaeddin Al-Tarawneh
Keyword(s):  
Stock Market ◽  
Inflation Rate ◽  
Threshold Model ◽  
Threshold Level ◽  
Market Development ◽  
Threshold Effects ◽  
Stock Market Development ◽  
Estimation Techniques ◽  
Positive Effects ◽  
The Relationship

The paper examines the existence of threshold effects in the relationship between inflation and stock market development in Jordan. It hypothesizes that inflation rate has positive effects on the market development before it reaches a certain level. A controlled threshold model is estimated over annul period from 1980 to 2018. We provide evidence that the nexus between inflation and stock market development is nonlinear and the inflation threshold is detected at 1.6%. The association is found positive before the threshold level but negative beyond it. However, the inflation-stock market development relationship flattens out significantly for inflation above 6%. These findings are robust to alternative estimation techniques.

scholarly journals Oil price and Indonesian economic growth

2019 ◽  
Vol 17 (1) ◽  
pp. 152-162
Author(s):  
Sultan ◽  
Julius Jhonny Sarungu ◽  
Albertus Maqnus Soesilo ◽  
Siti Aisyah Tri Rahayu
Keyword(s):  
Economic Growth ◽  
Exchange Rates ◽  
Interest Rates ◽  
Empirical Evidence ◽  
Least Squares Method ◽  
Oil Prices ◽  
Negative Influence ◽  
Balance Of Payments ◽  
The Relationship ◽  
Positive Effect

Oil prices and economic growth are important indicators to see the success of Indonesia’s development performance. The use of oil as the world’s main energy source in general and Indonesia in particular is driven by industrialization. The more industries, the greater the energy resources needed. In the same context, economic growth will also increase oil demand. The purpose of this study is to examine and create empirical evidence of the relationship between world oil prices and economic growth towards domestic oil prices. Furthermore, to test and create empirical evidence on the relationship of domestic oil prices, agriculture, trade, investment, inflation, interest rates, industry, labor, exchange rates and balance of payments to economic growth. The expected output of this research will be to provide information on the policy of the transmission mechanism of oil prices and economic growth in Indonesia. The method used is descriptive and econometric approach to the analysis of simultaneous equation models with two stages of the least squares method. The results of the study indicate that there is a simultaneous relationship between oil prices and economic growth. Economic growth, world oil prices and domestic oil prices a year ago had a positive effect on domestic oil prices. The second result shows that domestic oil, agriculture, investment, interest rates, industry, exchange rates, balance of payments and economic growth in the previous year have a positive effect on economic growth, while trade, inflation and labor have a negative influence on economic growth.

scholarly journals Modeling Continuous Non-Linear Data with Lagged Fractional Polynomial Regression

2018 ◽  
Vol 6 (5) ◽  
Author(s):  
Kazeem Kehinde Adesanya ◽  
Abass Ishola Taiwo ◽  
Adebayo Funmi Adedodun ◽  
Timothy Olabisi Olatayo
Keyword(s):  
Coefficient Of Variation ◽  
Polynomial Regression ◽  
Estimation Method ◽  
Likelihood Estimation ◽  
Fractional Polynomial ◽  
Non Linear ◽  
Unit Increase ◽  
Independent Variable ◽  
The Relationship ◽  
Better Than

Fractional Polynomial regression is a form of regression analysis in which the relationship between the independent variable and the dependent variable is modelled as a 1/nth degree polynomial. Thus, this work is used to propose an extension of Fractional Polynomial Regression (FPR) term Lagged Fractional Polynomial Regression (LFPR) which is an alternative method to traditional techniques of analysing the pattern and degree of relationship between two or more continuous non-linear data. The coefficients of the proposed method were estimate using Maximum Likelihood Estimation method. From the results, the LFPR model indicated that for a unit increase in Evaporation, Humidity and Temperature there will be an increase in the millimeter of rainfall series on yearly basis. The value of coefficient of variation (R2) for the LFPR and FPR were 99% and 77%. While the value of adjusted Coefficient of Variation (R2) for LFPR and FPR were 96% and 75% respectively. Hence, the proposed method outperformed and adequately explained the variation in the dependent variable better than Fractional Polynomial Regression based on the values (R2) and adjusted (R2).

scholarly journals INFLATION, INFLATION UNCERTAINTY AND GROWTH IN THE IRANIAN ECONOMY: AN APPLICATION OF BGARCH-M MODEL WITH BEKK APPROACH

2013 ◽  
Vol 14 (5) ◽  
pp. 819-832 ◽  
Author(s):  
Hassan Heidari ◽  
Salih Turan Katircioglu ◽  
Sahar Bashiri
Keyword(s):  
Economic Growth ◽  
Empirical Evidence ◽  
Likelihood Method ◽  
Conditional Heteroskedasticity ◽  
Inflation Uncertainty ◽  
Quarterly Data ◽  
Log Likelihood ◽  
Autoregressive Conditional Heteroskedasticity ◽  
The Relationship ◽  
Empirical Framework

This paper investigates the relationship between inflation, economic growth and their respective uncertainties in Iran for the period of 1988–2008 by using quarterly data. We employ a Bivariate Generalized Autoregressive Conditional Heteroskedasticity-in-Mean (BGARCH-M) model to examine in a unified empirical framework all the possible interactions between inflation uncertainty and growth in Iran. The model is simultaneously estimated by using the maximum log-likelihood method with the BEKK approach. The main findings of the present study are: (1) Inflation causes inflation uncertainty, supporting the Friedman-Ball hypothesis. (2) Inflation uncertainty affects the level of economic growth, supporting the Friedman (1977) hypothesis. (3) Growth uncertainty does not affect the level of economic growth, supporting the Friedman (1968) hypothesis. (4) And finally our empirical evidence shows that growth uncertainty affects the level of inflation, supporting the Deveraux (1989) hypothesis.

Do Macroeconomic Variables affect Stock Returns in BRICS Markets? An ARDL Approach

2015 ◽  
Vol 4 (2) ◽  
Author(s):  
Vanita Tripathi ◽  
Arnav Kumar
Keyword(s):  
Stock Returns ◽  
Oil Prices ◽  
Arbitrage Pricing Theory ◽  
Macroeconomic Variables ◽  
Quarterly Data ◽  
Distributed Lag ◽  
Ardl Approach ◽  
Auto Regressive ◽  
Pricing Theory ◽  
The Relationship

The Arbitrage Pricing Theory (APT) propounded by Ross in 1976 argued for a variety of macroeconomic variables (sources of systematic risk) in explaining stock returns. In the same vein, this paper examines the relationship between macroeconomic variables (GDP, inflation, interest rate, exchange rate, money supply, and oil prices) and aggregate stock returns in BRICS markets over the period 1995-2014 using quarterly data. We have applied Auto Regressive Distributed Lag (ARDL) model to document such a relationship for individual countries as well as for panel data.

Revisiting the role of inflation in financial development: unveiling non-linear and moderating effects

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Kizito Uyi Ehigiamusoe ◽  
Suresh Narayanan ◽  
Wai-Ching Poon
Keyword(s):  
Linear Relationship ◽  
Financial Development ◽  
Inflation Rate ◽  
Content Type ◽  
Non Linear ◽  
The Impact ◽  
The Relationship ◽  
Moderating Role ◽  
Country Specific

PurposeThis paper aims to examine the non-linear impact of inflation on financial development, and the moderating role of GDP in the relationship between inflation and financial development in a panel of 125 countries.Design/methodology/approachIt employs the dynamic common correlated effects (CCE) that can control for heterogeneity and cross-sectional dependence. This technique enables us to conduct both panel and country-specific analyses.FindingsThough there is no significant evidence that inflation has a non-linear impact on financial development in the panel, the country-specific estimations reveal that inflation has a non-linear impact on financial development in 66 countries. The results also show that GDP mitigates the detrimental effect of inflation on financial development in 45 countries. An insight into the non-linear relationship between inflation and financial development is crucial for policy decision-making. Besides, knowledge of the moderating role of GDP in the relationship between financial development and inflation is fundamental for policy formulations.Originality/valueAlthough the extant literature has shown that the inflation rate plays a negative role in financial development, the literature overlooked the non-linear relationship between the two variables. Besides, the studies have not considered the role of GDP in moderating the impact of the inflation rate on financial development. This study fills these gaps in the existing body of finance literature.

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