scholarly journals Dilemma Between Deposit And Lending Rate: Savings-Investment Perspective

2021 ◽  
Vol 65 (1) ◽  
pp. 65-85
Author(s):  
Lateef Yunusa ◽  
◽  
Ibrahim Adekunle ◽  
Tolulope Williams ◽  
Jamiu Akindele ◽  
...  
Keyword(s):  
Financial Institutions ◽  
Negative Impact ◽  
Positive Impact ◽  
Deposit Rate ◽  
Distributed Lag ◽  
Autoregressive Distributed Lag ◽  
Ardl Approach ◽  
Lending Rate ◽  
The Interest Rate ◽  
The Impact

The dilemma between deposit and lending rate has created challenges for financial institutions in the course of intermediation. This dilemma also made it difficult for investors to make accurate decisions which has created a lacuna in the financial system. The objective of this study is to investigate the source of the dilemma between deposit and lending rate. The study also examined the impact of deposit and lending rate on saving and investment respectively in Nigeria using the AutoRegressive Distributed Lag (ARDL) approach. The empirical result revealed the main cause of the dilemma to be the fluctuation in the deposit and lending rate. The ARDL result shows that the deposit rate has a positive impact on savings while the lending rate has a negative impact on investment in Nigeria. The monetary authority should endeavor to maintain stability of the interest rate due to the significant impact of these rates on saving, investment and economic growth at large.

scholarly journals FDI-Led-Growth in Malaysia: Autoregressive Distributed Lag (ARDL) Bounds Testing Approach

2018 ◽  
Vol 11 (11) ◽  
pp. 46
Author(s):  
Jerome Kueh ◽  
Yong Sze Wei
Keyword(s):  
Economic Growth ◽  
Financial Crisis ◽  
Global Financial Crisis ◽  
Negative Impact ◽  
Positive Impact ◽  
Bounds Testing ◽  
Policy Makers ◽  
Distributed Lag ◽  
Autoregressive Distributed Lag ◽  
The Impact

This study intends to investigate the validity of the foreign direct investment, FDI-led-growth hypothesis in Malaysia in this era. Autoregressive Distributed Lag (ARDL) bounds test approach is adopted to examine the impact of FDI inflow towards growth of Malaysia based on annually data from 1980 to 2016. Empirical results indicate that FDI inflow has significant positive impact on economic growth. This implies that FDI inflow remain important tool for stimulating economic growth of Malaysia. In addition, there is a negative impact of FDI inflow on economic growth during the 1997 Asian Financial crisis and positive impact during the 2008 Global Financial crisis. In terms of policy recommendation, the policy makers should continue to develop strategies to further attract FDI that will contribute to increasing the productivity in the country.

scholarly journals Income Inequality and Public Debt: What Can Be Learned from the Lebanese Indebtedness?

2020 ◽  
Vol 10 (4) ◽  
pp. 83
Author(s):  
Adham Sayed
Keyword(s):  
Income Inequality ◽  
Public Debt ◽  
Negative Impact ◽  
Correction Model ◽  
The Public ◽  
Distributed Lag ◽  
Autoregressive Distributed Lag ◽  
Long Run ◽  
Ardl Approach ◽  
The Impact

This paper examines the impact of domestic public debt on income inequality in Lebanon. The analysis is carried out using the Autoregressive Distributed Lag (ARDL) approach and Error Correction Model (ECM). The data used covers the period between 1990 and 2015. By applying the bounds test, we indicate that there is the existence of a long-run relationship between our variables. Therefore, in both the short and long run, our results show that the domestic share of public debt has a positive and significant effect on income inequality. Hence, a bigger share of domestic public debt leads to wider income inequality. We also suggest steps that may halt the negative impact of public debt on equality in Lebanon, such as reforming the tax system, restructuring the public debt, and searching for sources other than borrowing to cover the budget deficit.

SHORT-RUN AND LONG-RUN IMPACT OF INFLATION, UNEMPLOYMENT, AND ECONOMIC GROWTH TOWARDS POVERTY IN INDONESIA: ARDL APPROACH

2019 ◽  
Vol 2 (1) ◽  
pp. 15
Author(s):  
Ahmadi Murjani
Keyword(s):  
Economic Growth ◽  
Poverty Alleviation ◽  
Macroeconomic Variables ◽  
Distributed Lag ◽  
Autoregressive Distributed Lag ◽  
Long Run ◽  
Ardl Approach ◽  
Short Run ◽  
The Government ◽  
The Impact

 Poverty alleviation has become a vigorous program in the world in recent decades. In line with the efforts applied by the government in various countries to reduce poverty, some evaluations have been practised. The impacts of macroeconomic variables such as inflation, unemployment, and economic growth have been commonly employed to be assessed for their impact on the poverty. Previous studies in Indonesia yielded mix results regarding the impact of such macroeconomic variables on the poverty. Different methods and time reference issue were the suspected causes. This paper aims to overcome such problem by utilising the Autoregressive Distributed Lag (ARDL) equipped with the latest time of observations. This paper finds in the long-run, inflation, unemployment, and economic growth significantly influence the poverty. In the short-run, only inflation and economic growth are noted affecting poverty significantly. 

On the Evolutionary Interplay Between Remittances, Financial Development, and Economic Growth

2019 ◽  
pp. 78-96
Author(s):  
Ramzi Fahrani ◽  
Azza Béjaoui
Keyword(s):  
Economic Growth ◽  
Financial Development ◽  
Data Series ◽  
Distributed Lag ◽  
Autoregressive Distributed Lag ◽  
Long Run ◽  
Ardl Approach ◽  
Stable Economy ◽  
Relationship Of ◽  
The Impact

In this chapter, the authors attempt to investigate the interaction between remittances and financial development and its impact on the economic growth over the period 1980-2016. In this respect, they apply the autoregressive distributed lag bound test (ARDL) approach on cross-country of data series from 1980 to 2016 to study the short- and long-run relationship of remittances and financial development with economic growth. The empirical results show that the direct effects of shipments on growth are significant. On the other hand, the impact of remittances on economic seems to be more significant by means of the financial development. It also shows that these shipments are more efficient in the case of a less developed informal sector, a politically stable economy, and a developed financial structure.

Asymmetric Effect of Fiscal Deficit on Current Account Deficit: Evidence from India

2021 ◽  
pp. 097226292110572
Author(s):  
Vishal Sharma ◽  
Masudul Hasan Adil ◽  
Sana Fatima ◽  
Ashok Mittal
Keyword(s):  
Current Account ◽  
Positive Impact ◽  
Current Account Deficit ◽  
Fiscal Deficit ◽  
Asymmetric Effect ◽  
Distributed Lag ◽  
Autoregressive Distributed Lag ◽  
Long Run ◽  
Asymmetric Impact ◽  
The Impact

This study has attempted to re-investigate the impact of fiscal deficit (FD) on current account deficit (CAD) (also known as twin deficit hypothesis) in India from 1970–1971 to 2018–2019 in the presence of private saving–investment gap (SI) and exchange rate (EXR). For the empirical investigation, the study has employed the nonlinear autoregressive distributed lag (NARDL) approach to cointegration. The NARDL results found the evidence of an asymmetric effect of FD, SI and EXR on CAD in the long run only. The obtained results support the traditional views of the Keynesian approach that FD has a positive impact on CAD, validates the existence of the ‘Twin Deficit Hypothesis’ in India. Further, results also depict that SI has a positive effect on CAD, whereas EXR has an adverse impact on CAD. From a policy standpoint, the asymmetric impact of FD on CAD provides strong reasons for conceiving policies that are adaptable to changing dynamics in internal as well as external sectors.

scholarly journals The Impacts of Monetary and Fiscal Policies on Economic Growth in Malaysia, Singapore and Thailand

2020 ◽  
Vol 9 (1) ◽  
pp. 114-130
Author(s):  
Chai-Thing Tan ◽  
Azali Mohamed ◽  
Muzafar Shah Habibullah ◽  
Lee Chin
Keyword(s):  
Economic Growth ◽  
Least Squares ◽  
Least Squares Method ◽  
Negative Impact ◽  
Positive Impact ◽  
Ordinary Least Squares ◽  
Jel Classification ◽  
Fiscal Policies ◽  
Distributed Lag ◽  
The Impact

This article analyses the impact of monetary and fiscal policies on economic growth in Malaysia, Singapore and Thailand from 1980:Q1 to 2017:Q1. Autoregressive distributed lag (ARDL) approach is employed to determine the long-run relationship. Further, a range of econometric models, such as fully modified least squares method (FMOLS), canonical cointegration regression (CCR) and dynamic ordinary least squares method (DOLS), are applied to check the robustness. The results are stable and robust as all the models yield consistency result. The main findings in this study demonstrate that: (a) interest rate had a negative impact on economic growth in three selected countries. (b) Government spending had a negative impact on economic growth in Malaysia and Singapore, but had a positive impact in Thailand. (c) Monetary policy is more effective in Malaysia and Singapore, while fiscal policy is more effective in Thailand. JEL Classification: E52, E58, E62, C01

Globalisation and Economic Growth in India: An ARDL Approach

2021 ◽  
pp. 001946622110153
Author(s):  
Suadat Hussain Wani ◽  
M. Afzal Mir
Keyword(s):  
Economic Growth ◽  
Positive Impact ◽  
Bounds Testing ◽  
Foreign Investors ◽  
Jel Codes ◽  
Distributed Lag ◽  
Autoregressive Distributed Lag ◽  
Ardl Approach ◽  
Bounds Testing Approach ◽  
Testing Approach

This study aims to investigate the relation between globalisation, which includes foreign direct investment (FDI), exports, imports, foreign remittances and economic growth in India. To achieve the said objective, Autoregressive Distributed Lag bounds testing approach has been utilised. The study indicates that imports and FDI positively affect economic growth in India. On the other hand, exports and foreign remittances have negative and significant relationship with economic growth. This suggests that exports and foreign remittances take more time to spillover positive impact on economic performance of India. The findings suggest that FDI should be encouraged to promote exports, export-led growth and joint ventures with foreign investors in the country. JEL Codes: F30, F10, F10, F24, C22

scholarly journals Nexus between Climate Change and Agricultural Production in Odisha, India: An ARDL Approach

2021 ◽  
Vol 6 (2) ◽  
pp. 136-144
Author(s):  
Pratap Kumar Jena
Keyword(s):  
Climate Change ◽  
Agricultural Production ◽  
Agricultural Research ◽  
Climate Variables ◽  
Distributed Lag ◽  
Autoregressive Distributed Lag ◽  
Ardl Approach ◽  
The Government ◽  
The Impact ◽  
The Relationship

Climate change is an emerging issue particularly in agricultural research as it is observed that the climate change has unfavorably distressed the agricultural production in different regions in India. Therefore, the present study has empirically examined the relationship between climate change and agricultural production in the selected districts of Odisha, India using a Panel Autoregressive Distributed Lag (PARDL) model over the period 1993 to 2019. The study found that the climate variables have adversely affected the crops production in the districts of Odisha. In order to minimize the impact of climate change on crops production in the state, there must have implementation of various policies and adaptive strategies by the government and farmers.

scholarly journals The Impact of FDI on Economic Development of Pakistan

2012 ◽  
Vol 3 (2) ◽  
pp. 59-68
Author(s):  
Muhammad Tahir Mahmood
Keyword(s):  
Economic Development ◽  
Time Series Data ◽  
Positive Impact ◽  
Series Data ◽  
Domestic Investment ◽  
Distributed Lag ◽  
Country Level ◽  
Autoregressive Distributed Lag ◽  
Ultimate Result ◽  
The Impact

The foreign direct investment has made its position better as a bundle of benefits during the last three decades at the global level. The ultimate result of its benefits for the recipient countries is often sought in term of economic development. Such results do not appear in the same fashion in all recipient economies and so provide the space to investigate this nexus at country level. This study is an endeavor to examine empirically the impact of FDI on economic development of Pakistan. For this purpose, the time series data covering the period (1971-2009) were used. For data analysis, the bound testing approach to co integration within the framework of the Autoregressive Distributed Lag (ARDL) was utilized. The findings of the study supported the hypothesis of positive impact of FDI on economic development of Pakistan. The results also endorsed the views that the FDI is more effective than that of domestic investment.

scholarly journals The Impact of Remittances on Economic Growth of Kyrgyzstan

2017 ◽  
Author(s):  
Burulcha Sulaimanova ◽  
Daniyar Jasoolov
Keyword(s):  
Economic Growth ◽  
Negative Impact ◽  
Estimation Methods ◽  
Kyrgyz Republic ◽  
Empirical Estimation ◽  
Vector Autoregressive ◽  
Distributed Lag ◽  
Autoregressive Distributed Lag ◽  
Long Run ◽  
The Impact

The aim of this paper is to study the impact of remittances on the gross domestic product of Kyrgyz Republic, by using several empirical estimation methods, these are: the method of simultaneous equations, the Autoregressive Distributed Lag and Vector Autoregressive models. While there is a long run relationship between remittances and economic growth of Kyrgyzstan, according to the estimation results of the simultaneous models, there is statistically significant positive correlation of households’ final consumption and imports with remittances, and simultaneously significant positive effect of consumption on GDP, and significant, but negative impact of imports to GDP. Moreover, the small but significant impact of remittances on demand for domestic products were found.

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