scholarly journals Impact of Infaltion, Exchange Rate and Interest Rate on the Private Sector Credit of Pakistan

2020 ◽  
Vol 6 (4) ◽  
pp. 1133-1138
Author(s):  
Muhammad Umair Ali ◽  
Saliha Gul Abbasi ◽  
Mazhar Abbas ◽  
Ghulam Dastgeer
Keyword(s):  
Exchange Rate ◽  
Interest Rate ◽  
Private Sector ◽  
Negative Impact ◽  
Positive Impact ◽  
Short Term ◽  
Short Run ◽  
Auto Regressive ◽  
Adf Test

The paper analyzed the long-term and short-term impact of interest rate, exchange rate and inflation on the private sector credit of Pakistan during the period from 1975 to 2018. To test the stationarity of data Augmented Dick Fuller (ADF) Test was applied. While the main model to explore the long-term and short-term dependence was based on Auto Regressive Distribution Lag (ARDL) Model. The results suggested no effect of exchange rate on private sector credit, while inflation has significant as well as positive impact on Private Sector Credit (PSC) in long as well as short run. Lastly, the most important dependence i.e. interest effect on PSC; depicted negative impact in both short and long term.

scholarly journals Impact of Macro-Economic Variable on Pakistan Stock Exchange KSE-100 Index

2021 ◽  
Vol 2 (3) ◽  
pp. 17-23
Author(s):  
Muhammad Faisal Hassan ◽  
Hashim Bin Jusoh ◽  
Sajjad Khan ◽  
Fahad Ali Khan ◽  
Muhammad Naseem ◽  
...  
Keyword(s):  
Exchange Rate ◽  
Interest Rate ◽  
Time Series Data ◽  
Positive Impact ◽  
Stock Exchange ◽  
Ordinary Least Squares ◽  
Series Data ◽  
Short Run ◽  
The Impact ◽  
Adf Test

The researcher investigates the Impact of inflation, exchange rate and interest rate on Pakistan stock Exchange performance KSE-100 index by using monthly time series data which covers the period of 2013 to 2020. The econometrics techniques which are employed includes ADF test, Ordinary Least squares regression Model, testing for Multi-collinearity, Residual analysis serial correlation, testing for co-integration, Error correction model (ECM), variance decomposition (VAR) and Pair wise granger causality test. The results indicate that there is positive impact of exchange rate on PSX 100 index and the impact of inflation and interest rate is fond negative but inflation have insignificant relationship with PSX 100 index and the other two relationships are found significant. From the ECM result it is found that in short run 20% of the variation in dependent variable is due to inflation, exchange rate and interest rate and 80% variation is unexplained in short run. Form the results of VAR test it is concluded that exchange rate 1.67, inflation 14.25%, and interest rate 3.90% variation cause in PSX 100 index performance due to these three independent variables.

scholarly journals IMPACT OF INTEREST RATE ON PRIVATE SECTOR CREDIT; EVIDENCE

2016 ◽  
Vol 04 (01) ◽  
pp. 47-52
Author(s):  
Nadeem Aftab ◽  
◽  
Khalil Jebran ◽  
Irfan Ullah ◽  
Muhammad Awais ◽  
...  
Keyword(s):  
Interest Rate ◽  
Private Sector ◽  
Term Effect ◽  
Short Term ◽  
Long Run ◽  
Augmented Dickey Fuller ◽  
Negative Effect ◽  
Short Run ◽  
Auto Regressive ◽  
Positive Effect

This study explored the long and short term effect of interest rate on private sector credit on Pakistan for the period of 1975 to 2011. The Stationary of data was analyzed by Augmented Dickey Fuller and Phillips Peron test. This study applied Auto Regressive Distribution Lag (ARDL) model for the purpose of analyzing long and short term relationship. The results revealed significant negative effect of interest rate on private sector credit in the long run, and also in the short run. The results also indicated significant positive effect of inflation on private sector credit in long and short run. However, exchange rate was found to have no effect on private sector credit.

العلاقة التبادلية بين سعر الصرف وأسعار الأسهم دراسة تطبيقية في سوق اسطنبول للأوراق المالية للمدة 2005-2020

2021 ◽  
Vol 1 (1) ◽  
Author(s):  
سعدالله ألنعيمي
Keyword(s):  
Exchange Rate ◽  
Stock Prices ◽  
Negative Impact ◽  
Reciprocal Relationship ◽  
Nominal Exchange Rate ◽  
Share Price ◽  
Theoretical Interpretation ◽  
Short Term ◽  
The Exchange Rate

The study aims to analyzing the reciprocal relationship between the nominal exchange rate of the Turkish lira versus the U.S. dollar and the stock prices of the companies listed on the Istanbul Stock Exchange (ISE) expressed in the general market index for the period from 2005 to 2020 with 192 monthly observations, based on the traditional theory and the theory of portfolio balance model in theoretical interpretation for that relationship, aiming to identify the effect of the exchange rate on stock prices, as well as to analyze the causal relationship between those variables and to identify which of them is the cause or which is the result, using the Autoregressive Distributed Lag (ARDL) model. The research found that the exchange rate has a positive effect on stock prices in the long term, despite the emergence of the negative impact in the short term, but the long-term relationship has corrected the course of the short-term relationship with a time period not exceeding one month, in addition to proving that this relationship takes one direction. From the exchange rate towards stock prices, that is, the exchange rate is the reason and stock prices are the result, therefore the results of this research helps investors to predict future trends of stock prices depending on the exchange rate changes, and it also enables the companies, especially those with foreign transactions, to manage price risks the exchange rate in order to avoid its negative impact on its share price, as it represents an obstacle to achieving its main goal of maximizing the share price

The Effect of Covid-19, Rupiah Exchange Rate, and Inflation on the Indonesia Sharia Stock Index during the Covid-19 Pandemic

2021 ◽  
Vol 4 (1) ◽  
pp. 313-336
Author(s):  
Achmad Agus Priyono ◽  
Ari Kartiko
Keyword(s):  
Exchange Rate ◽  
Time Series Data ◽  
Negative Impact ◽  
Stock Index ◽  
Series Data ◽  
Stock Market Index ◽  
Short Term ◽  
The Us ◽  
Us Dollar

Purpose of this study is to clarify the effect of the number of daily cases reported to have contracted the Covid-19 virus, the exchange rate of the rupiah against the US dollar and inflation on the movement of the Indonesian Sharia stock index (ISSI) during the Pandemic Covid 19 in the short term and long term. Data analysis methods that used is analysis Error Correction Mechanism (ECM) using Eviews software 10. The data collected is daily time series data starting from March 2, 2020 to May 31, 2021 so that the number of samples collected obtained as many as 283 samples . The results of the study stated that the addition of the daily number of reported cases of contracting the Covid-19 virus has a negative impact on The Indonesian Sharia Stock Market Index (ISSI) during the Covid-19 pandemic, so that encourage the weakening of the Stock Index both in the long and long term short. Likewise, the weakening of the rupiah against the US dollar will caused the fall of the sharia index during the Covid 19 pandemic, both in the long term and long and short term. However, the study found no effect inflation on the Indonesian Sharia Stock Index (ISSI) during the Covid19 pandemic, good long term and short term

scholarly journals INDUSTRIALIZATION AND TRANSPORT IN INDONESIA ON ENVIRONMENTAL DEGRADATION

TRIKONOMIKA ◽  
2020 ◽  
Keyword(s):  
Co2 Emissions ◽  
Environmental Degradation ◽  
Negative Impact ◽  
Positive Impact ◽  
Analysis Method ◽  
Long Term Effects ◽  
Short Term ◽  
Industrial Sectors ◽  
Short And Long Term

Economic development in a country is indicated by an increase in the number of industrial sectors and other supporting facilities such as transportation. However, there is another impact on developments industrial sectors and transportation, especially environmental degradation. Air pollution is one of the environmental degradation. This research was conducted to determine the short-term and long-term environmental impact of industry and transport in Indonesia. The data analysis method in this research used Autoregressive Distribution Lag (ARDL) to see the short-term and long-term effects between research variables. The data used are data on CO2 emissions, the amount of industries and transport in Indonesia from 1965 - 2018. The results showed that the industry had a negative impact on increasing CO2 emissions in the short and long term. Meanwhile, transportation has a positive impact in the short term and a negative impact in the long term.

scholarly journals AN ESSAY ON CONSUMPTION HYPOTHESES: EVIDENCE FROM PAKISTAN

2020 ◽  
Vol 3 (01) ◽  
pp. 23-32
Author(s):  
Khalid Khan ◽  
Marguerite Wotto ◽  
Saima Liaqat
Keyword(s):  
Interest Rate ◽  
Interest Rates ◽  
Unemployment Rate ◽  
Private Consumption ◽  
Short Term ◽  
Aggregate Consumption ◽  
Short Run ◽  
Consumption Decision ◽  
Yearly Data

In this study, the ARDL method is used to assess short-term and longterm relationships between private consumption, labor income, interest rate, wealth, and unemployment rate. The real private consumption model for Pakistan has been estimated by applying yearly data from 1990 to 2016. According to long-term estimates, income and wealth determine the actual national consumption. Nevertheless, the short run national private consumption is determined by current incomes, wealth, real interest rates, and the unemployment rate. Findings of this study reveal significant impact of all the observed determinants of consumption function i.e. real disposable income, wealth, real interest rate, and unemployment rate on aggregate consumption. Whereas it is noteworthy that the coefficient for wealth was minor but significant, depicting slight impact of wealth on consumption decision. These results support validity of AIH for Pakistan.

scholarly journals PENGARUH INFLASI, JUB, SBI, SERTA CADANGAN DEVISA TERHADAP NILAI TUKAR RUPIAH TAHUN 2017-2020

2021 ◽  
Vol 6 (2) ◽  
pp. 60-72
Author(s):  
Duwik Tri Utami ◽  
Fitrah Sari Islami
Keyword(s):  
Exchange Rate ◽  
Interest Rate ◽  
Money Supply ◽  
Foreign Exchange ◽  
Open Economy ◽  
The United States ◽  
Foreign Exchange Reserves ◽  
Short Term ◽  
The Exchange Rate

Indonesia's economy refers to an open economy. In conducting international trade, countries must compare their currencies with currencies belonging to other countries. Where, the United States currency, namely the dollar, is still the standard of world exchange rates and is used in international transactions. The effect of fluctuations in the exchange rate of the rupiah with the dollar is the occurrence of depreciation or appreciation which will affect Indonesia's economic activities. The purpose of this study is to determine the effect of inflation, the money supply (M2), the SBI interest rate, and foreign exchange reserves on the rupiah exchange rate in the short and long term. The variables that are thought to be able to influence changes in the rupiah exchange rate are the inflation rate, the money supply (M2), the SBI interest rate, and foreign exchange reserves. This research was conducted during January 2017 to December 2020, using the Error Correction Model (ECM). The result is a long-term and short-term relationship. In the short term, foreign exchange reserves and the money supply (M2) significantly affect the exchange rate. Meanwhile, in the long term, the SBI interest rate, money supply (M2), and foreign exchange reserves significantly affect the exchange rate.

scholarly journals ANALISIS DAMPAK HARGA EMAS DUNIA, HARGA MINYAK DUNIA, KURS, INDEKS HARGA KONSUMEN (IHK), DAN BI RATE TERHADAP JAKARTA ISLAMIC INDEX

2019 ◽  
Vol 1 (02) ◽  
pp. 7-20
Author(s):  
Muhammad Umar Azyka Alfuadi
Keyword(s):  
Exchange Rate ◽  
Price Index ◽  
Negative Impact ◽  
Positive Impact ◽  
Consumer Price Index ◽  
Gold Price ◽  
Oil Price ◽  
Economic Principle ◽  
Islamic Economic

The paper attempts to analyze the impacts of gold price, oil price, exchange rate, consumer price index, and BI rate to Jakarta Islamic Index using VAR- VECM analysis. The result shows that in long term all variables have a significant impact to JII. Gold price has negative impact to JII 4,1% and stable after 12 months, oil price has positive impact 1% and stable after 21 months, exchange rate has positive impact 3,8% and stable after 17 months, consumer price index has positive impact 0,5% and stable after 21 months, and BI rate has negative impact 6,2% and stable after 15 months. BI rate also gives the biggest impact‟s contribution into JII. This result is very contradictory with Islamic economic principle “No-Riba Oriented”.

scholarly journals Analisis Faktor-Faktor yang Mempengaruhi Nilai Tukar Rupiah Periode 1999Q1-2019Q2

2020 ◽  
Vol 11 (2) ◽  
pp. 197-209
Author(s):  
Erric Wijaya
Keyword(s):  
Exchange Rate ◽  
Interest Rate ◽  
Interest Rates ◽  
Inflation Rate ◽  
Oil Prices ◽  
Short Term ◽  
Long Run ◽  
The Exchange Rate ◽  
The Interest Rate

The exchange rate plays an important role in influencing the level of Indonesia's international trade towards trading partner countries. This study discusses the factors that influence the exchange rate of the rupiah against dollar both in the short and long term. The variables that are suspected to influence changes in exchange rates are the inflation rate, the interest rate (SBI), world oil prices, the value of exports, and the value of imports. This research was conducted during 1999 quarter 1 to 2019 quarter 2. The results showed that there was a long-term and short-term relationship between inflation rates, interest rates, world oil prices, exports and imports to the exchange rate. In the short term, the interest rate and world oil prices have a significant effect on the exchange rate. In the long run, the inflation rate, world oil prices and imports have a significant effect on the exchange rate.

scholarly journals Determinants Factors of Interest Rates on Three-Month Deposits of Bank Persero

JEJAK ◽  
2017 ◽  
Vol 10 (1) ◽  
pp. 90-102
Author(s):  
Tedy Kurniawan ◽  
Sucihatiningsih Dian Wisika Prajanti
Keyword(s):  
Exchange Rate ◽  
Interest Rate ◽  
Money Supply ◽  
The State ◽  
Capital Adequacy ◽  
Short Term ◽  
Operating Income ◽  
Short And Long Term ◽  
The Interest Rate

This research aims at analyzing the influence of Capital Adequacy Ratio (CAR), Operating Expenses of Operating Income (BOPO), inflation, exchange rate, and the amount of money supply (M1) to the interest rate of three month deposits of the State-Owned Bank in Indonesia in 2007-2015. This research uses the error correction model analysis. The result obtained is the CAR that has a significant effect on the long term and has no effect on the short term, BOPO has a significant influence on the long term and short term, inflation has the significant effect on the long term and has no effect on the short term, the exchange rate has an influence on the short and long term, the money supply has no effects on the short and long-term on the interest rate on three month deposits of the State-Owned Bank.

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