scholarly journals Macroeconomic Determinants of Consumption Inequality in Nigeria: Does Agricultural Productivity Matter?

2021 ◽  
Vol 4 (4) ◽  
pp. 253
Author(s):  
Oziengbe Scott Aigheyisi ◽  
Presley Kehinde Osemwengie
Keyword(s):  
Agricultural Productivity ◽  
Domestic Investment ◽  
Investment Environment ◽  
Agriculture Sector ◽  
Long Run ◽  
Telecommunication Infrastructure ◽  
Ardl Approach ◽  
Short Run ◽  
Error Correction Modeling ◽  
Macroeconomic Determinants

The paper examines the effect of agricultural productivity and other macroeconomic variables on consumption inequality in Nigeria. The ARDL approach to cointegration and error correction modeling was employed for the analysis. The study found that agricultural productivity and domestic investment reduce consumption inequality in the long run. FDI was also found to be associated with reduction in consumption inequality in the short run, but its long run effect was not statistically significant. Based on the evidence, the study recommends as measure to reduce consumption inequality in the country, increased investment in the agriculture sector to enhance its productivity, and improvement in the investment environment through infrastructural development, including energy, road, telecommunication infrastructure, favourable, tax policies, enhanced national security, etc. to encourage domestic investment and enhance the attractiveness of the economy to FDI.

scholarly journals Determinants of Agricultural Productivity: Empirical Evidence from Pakistan’s Economy

2016 ◽  
Vol I (I) ◽  
pp. 1-12
Author(s):  
Mehmood Kakar ◽  
Adiqa Kiani ◽  
Asia Baig
Keyword(s):  
Correction Term ◽  
Agricultural Productivity ◽  
Agriculture Sector ◽  
Distributed Lag ◽  
Productivity Convergence ◽  
Long Run ◽  
Short Run ◽  
Auto Regressive ◽  
Total Productivity ◽  
Positive Effect

This article examines the determinants of the total productivity of the agriculture sector which enhances the total agricultural productivity in Pakistan and analyzes the relations among variables used for the analysis from 1990 - 2017. The application of the auto regressive distributed lag technique ARDL was used to approximate various determinants. The area under cultivation, fertilizer consumption, agriculture credit, and rainfall show a positive effect on agriculture productivity, whereas agriculture employment and pesticide consumption show a positive but statistically insignificant effect on agricultural productivity in the long run. While in the short-run all determinants have a positive and significant effect on total agriculture productivity convergence towards equilibrium is shown by error correction term is 0.829.

On the link between policy uncertainty and housing permits: asymmetric evidence from state-level data in the USA

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mohsen Bahaman-Oskooee ◽  
Hesam Ghodsi ◽  
Muris Hadzic
Keyword(s):  
Error Correction ◽  
State Level ◽  
Policy Uncertainty ◽  
Content Type ◽  
Asymmetric Effects ◽  
Long Run ◽  
Ardl Approach ◽  
The Usa ◽  
Short Run ◽  
Error Correction Modeling

Purpose The purpose of this study is to assess the symmetric and asymmetric impact of a measure of policy uncertainty on house permits issued in each state of the USA. Design/methodology/approach To assess the symmetric effects, the authors use Pesaran et al.’s (2001) linear autoregressive distributed lag (ARDL) approach to error-correction modeling. To assess the asymmetric effects, they rely upon Shin et al.’s (2014) nonlinear ARDL approach to error-correction modeling. Both approaches have the advantage of producing short-run and long-run effects in one step. Findings The authors find short-run symmetric effects of policy uncertainty on house permits issued in 22 states that lasted into the long run in three states only. However, the numbers were much higher when they estimated the possibility of asymmetric effects of policy uncertainty. Indeed, they found short-run asymmetric effects in 38 states and long-run asymmetric effects in 18 states. Originality/value Some previous studies assessed the effects of a measure of policy uncertainty on house prices. In this paper, the authors extend the same analysis to the supply side of the housing market by assessing the effects of policy uncertainty on house permits in each state of the USA.

scholarly journals Macroeconomic Determinants of the Non-performing Placements and Off-balance Sheet Liabilities of Croatian Banks

Organizacija ◽  
2015 ◽  
Vol 48 (2) ◽  
pp. 75-87 ◽  
Author(s):  
Manuel Benazić ◽  
Dajana Radin
Keyword(s):  
Balance Sheet ◽  
Key Factors ◽  
Bounds Testing ◽  
Real Gdp ◽  
Long Run ◽  
Ardl Approach ◽  
Short Run ◽  
Macroeconomic Determinants ◽  
Quantitative Impact ◽  
Cointegration Relationship

Abstract Background and Purpose: The non-performing placements and off-balance sheet liabilities are often considered key factors that lead to banking crises. Economic and financial crises increase the level of the non-performing placements and off-balance sheet liabilities which can cause significant losses for banks. Effective management and regulatory/ supervisory institutions such central banks should be able to recognize and quantify these effects. Therefore, the purpose of this study is to empirically determine the existence and the quantitative impact of main Croatian macroeconomic variables on the non-performing placements and off-balance sheet liabilities of Croatian banks in the long and short-run. Methodology: For this purpose the bounds testing (ARDL) approach for cointegration is applied. The ARDL model is performed in two steps. The first step starts with conducting the bounds test for cointegration. In the second step, when cointegration is found, the long-run relationship and the associated error correction model are estimated. Results: The results indicate the existence of stable cointegration relationship between the variables i.e. in the longrun, an increase in real GDP reduces the level of the non-performing placements and off-balance sheet liabilities of Croatian banks wherein an increase in prices, unemployment, interest rate and the depreciation of the Croatian kuna exchange rate increases their level. On the other hand, in the short-run the results are rather mixed. Conclusion: To avoid crises, effective bank management and regulatory/supervisory institutions should be able to recognize and quantify these effects. This is a necessary precondition for implementation of an adequate prudential and monetary policy measures for reducing the level of the non-performing placements and off-balance sheet liabilities.

Determinants of Agricultural Productivity in Ethiopia: ARDL Approach

2018 ◽  
Vol 66 (3-4) ◽  
pp. 365-374
Author(s):  
Aynalem Shita ◽  
Nand Kumar ◽  
Seema Singh
Keyword(s):  
Arable Land ◽  
Agricultural Productivity ◽  
Factors Affecting ◽  
Distributed Lag ◽  
Autoregressive Distributed Lag ◽  
Long Run ◽  
Ardl Approach ◽  
Short Run ◽  
The Government ◽  
Alternative Sources

This study analyses factors affecting agricultural productivity in Ethiopia for the period of 1990–2016 by using autoregressive distributed lag (ARDL) model. Both the bounds test and the error correction model confirmed the existence of co-integration (long-run relationship) between the variables included in the model. The results revealed that cereal productivity is positively influenced by use of fertiliser and real gross domestic product (GDP) both in the long run and in the short run. While size of arable land influences productivity positively in the long run, its short-run effect was found to be negative. Hence, the government and other concerned authorities should work to enhance farmers’ use of improved technologies, such as fertiliser, by ensuring its timely availability at an affordable price, encouraging farmers to participate on alternative sources of income such as off-farm activities and bringing additional area under cereal production to improve agricultural productivity.

Determinants of Workers’ Remittances in Nepal: An Empirical Study

2021 ◽  
Vol 3 (1) ◽  
pp. 126-140
Author(s):  
Naw Raj Bhatt ◽  
Melina Kharel
Keyword(s):  
Exchange Rate ◽  
Poverty Eradication ◽  
Exogenous Variables ◽  
Long Run ◽  
Ardl Approach ◽  
Short Run ◽  
Us Dollar ◽  
The Exchange Rate ◽  
External Sector ◽  
The Relationship

Background: Remittance has a crucial role in external sector stability, poverty eradication, and social as well as the human development of developing countries like Nepal. The determinants of remittance are widely discussed in the existing works of literature from altruism and portfolio approaches. Since the share of remittance in the current account, current transfer income, and forex reserve is significantly high, the study of major determinants of increasing remittance inflow is necessary. In this regard, this paper examines the relationship between remittance inflow, exchange rate, and workers outflow in Nepal. Objective: The main objective of this study was to examine the effect of the exchange rate and workers outflow on the remittance inflow of Nepal. Methods: This study employs the ARDL approach to co-integration to examine the relationship between remittance inflow as an endogenous variable and exchange rate and workers outflow as exogenous variables. Results: The coefficients of the exchange rate and workers outflow are significant and positive in long run as well as in the short-run whereas coefficients of the first lag value of workers outflow and remittance inflow itself are significant but negative. Conclusion: The significant and positive coefficient of exchange rate indicates that depreciation of Nepalese currency with US dollar (or rise in the exchange rate) rises the remittance inflow. Further, the remittance inflow also increases with an increase in workers outflow. The effect of the exchange rate on remittance is greater than that of workers outflow in both the long-run and short-run.

scholarly journals Effects of Bilateral Real Exchange Rate on Sino-Nigeria Trade: An ARDL Cointegration Approach

2018 ◽  
Vol 10 (7) ◽  
pp. 125
Author(s):  
Julio Felippe Bicudo ◽  
Nnanna P. Azu
Keyword(s):  
Exchange Rate ◽  
Bilateral Trade ◽  
Bilateral Exchange ◽  
Long Run ◽  
Rate Fluctuation ◽  
Ardl Approach ◽  
Short Run ◽  
Negative Role ◽  
Balance Of Trade ◽  
Negative Balance

This research is motivated to scrutinise the effects of real bilateral exchange rate fluctuation on China-Nigeria bilateral trade, taking into consideration volatility and third country’s bilateral exchange rate effect to determine their consequences. Due to its robustness in time series analyses, an ARDL approach to co-integration was used to determine the long-and short-runs effects. Both export and import were considered separately. Outcome revealed that Nigeria’s import from China responds negatively to real bilateral exchange rate increase just as it does to its volatility. Her export to China reacts positively on both front, most especially in the short-run. Japan was integrated as a third country in this research due to her competing presence in Nigerian market. Third country’s real bilateral exchange rate play prominent but negative role in China-Nigeria trade, and is mostly effective in the long-run. With the absolute value of the co-efficient of real bilateral exchange rate greater than one, depreciating the Naira against the Renminbi will tend to ameliorate the negative balance of trade Nigeria has with China. Finally, democratic regime was found to be very essential in enhancing international business.

scholarly journals AID AND GROWTH IN BANGLADESH: A REASSESSMENT

2018 ◽  
pp. 422-440
Author(s):  
Sharif Hossain ◽  
Rajarshi Mitra ◽  
Thasinul Abedin
Keyword(s):  
Economic Growth ◽  
Foreign Aid ◽  
Inflation Rate ◽  
Government Expenditure ◽  
Real Income ◽  
Domestic Investment ◽  
Real Gdp ◽  
Long Run ◽  
Short Run ◽  
Per Capita

Although the amount of foreign aid received by Bangladesh as a share of GDP has declined over the years, Bangladesh remains one of the heavily aiddependent countries in Asia. The results of most empirical studies that have examined the effectiveness of foreign aid or other forms of development assistance for economic growth have varied considerably depending on the econometric methodology used and the period of study. As the debate and controversy over aid-effectiveness for economic growth continue to grow, this paper reinvestigates the short-run and long-run effects of foreign aid received on percapita real income of Bangladesh over the period 1972–2015. A vector error correction model is estimated. The results indicate lack of any significant short-run and long-run relation between foreign aid and per-capita real income. Results further indicate short-run unidirectional causalities from per-capita real GDP to domestic investment (in proportion to GDP), from government expenditure (in proportion to GDP) to inflation rate, from inflation rate to domestic investment (in proportion to GDP), and from domestic investment to foreign aid (as percentages of GDP). Short-run bidirectional causality is observed between per-capita electricity consumption and per-capita real GDP, and between per-capita real GDP and government expenditure (in proportion to GDP).

scholarly journals ANALISIS FAKTOR-FAKTOR YANG MEMPENGARUHI INVESTASI DALAM NEGERI DI JAWA TENGAH TAHUN 1980-2002

2007 ◽  
Vol 8 (1) ◽  
pp. 62
Author(s):  
Eni Setyowati ◽  
Siti Fatimah NH
Keyword(s):  
Economic Development ◽  
Development Process ◽  
Research Model ◽  
Domestic Investment ◽  
Correction Model ◽  
Central Java ◽  
Long Run ◽  
Short Run ◽  
Research Benefit ◽  
One Year

Investment is one of important component for sustainable economic development process. The research objective that want achieved is to estimate influence of labour, inflation, PDRB, and interest rate to domestic investment (PMDN) in Central Java. The research benefit was to clarify factors that influenced domestic investment and gave insight and input for local government in formulating economy policy.One of method for analysing long-run and short run influence was by using dynamic model. In this research, model which applied was ENGLE GRANGER ERROR CORRECTION MODEL (EG-ECM) based on granger representation theoremResult of this research indicated that domestic investment one year ago was variable which influenced significantly in short run while rate of interest influenced in long run.

scholarly journals Do FDI and Public Investment Crowd in/out Domestic Private Investment in the SADC Region

2021 ◽  
Vol 19 (1) ◽  
pp. 3-25
Author(s):  
Eslon Ngeendepi ◽  
Andrew Phiri
Keyword(s):  
Capital Expenditure ◽  
Public Investment ◽  
Trade Openness ◽  
Government Expenditure ◽  
Private Investment ◽  
Policy Implications ◽  
Domestic Investment ◽  
Government Investment ◽  
Long Run ◽  
Short Run

Our study examines the crowding-in/out effect of foreign direct investment and government expenditure on private domestic investment for 15 members of the Southern African Development Community (SADC) for the period 1991–2019. The study employed the panel Pool Mean Group (PMG)/ARDL technique in estimating the short-run and long-run cointegration relationships between FDI, government capital expenditure and domestic private investment and adds three more variables for control purposes (interest rate, GDP growth rate and trade openness). For the full sample, FDI crowds-in domestic investment whilst government crowds-out domestic investment. However, in performing a sensitivity analysis, in which the sample was segregated into low and high income economies, both FDI and government investment crowd-in domestic investment whilst government expenditure crowds-out domestic investment in lower income SADC countries with no effect of FDI on domestic investment. Policy implications are discussed.

Dynamic linkages between Non-renewable energy, Renewable energy and Economic growth through nonlinear ARDL approach: Evidence from Malaysia

2021 ◽  
Author(s):  
Rafia Afroz ◽  
Md Muhibbullah
Keyword(s):  
Economic Growth ◽  
Renewable Energy ◽  
Asymmetric Effect ◽  
Nonlinear Ardl ◽  
Long Run ◽  
Ardl Approach ◽  
Consumption Reduction ◽  
Short Run ◽  
Auto Regressive ◽  
Nardl Model

Abstract The purpose of this paper is to investigate the links between renewable energy (RE), non-renewable energy (NRE), capital, labour and economic growth, using the Non-linear Auto Regressive Distributive Lag (NARDL) model in Malaysia for the period of 1980–2018. The results of NARDL confirm the asymmetric effect of RE and NRE consumption on the economic growth in the long run as well as short run in Malaysia. The findings also show that in the long and short-run, positive shocks of NRE are greater than the positive shocks of RE. It indicates that Malaysia's economic growth is highly dependent on NRE which is not a good indication as NRE consumption increases carbon dioxide (CO2) emission in the country. Moreover, the empirical results of this study demonstrated that RE consumption reduction accelerates economic growth whereas NRE consumption reduction decreases economic growth. It can have claimed that in Malaysia RE is still more expensive than NRE. In conclusion, this study offered a variety of measures to develop RE to reduce the dependency on NRE consumption.

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