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

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.

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Effect of Interest Rate on Stock Prices in Ghana

Journal of Education and Vocational Research ◽

10.22610/jsds.v12i1(s).3187 ◽

2021 ◽

Vol 12 (1(S)) ◽

pp. 1-7

Author(s):

Peter Arhenful ◽

Augustine Kwadwo Yeboah ◽

Kofi Sarfo Adjei

Keyword(s):

Interest Rate ◽

Interest Rates ◽

Stock Prices ◽

Time Series Data ◽

Stock Exchange ◽

Ordinary Least Squares ◽

Series Data ◽

Augmented Dickey Fuller ◽

Ghana Stock Exchange ◽

Adf Test

The paper assesses the effect of interest rate on stock prices, with emphases on Ghana Stock Exchange; using monthly time series data from July 2007 to December 2019. The Augmented Dickey-Fuller (ADF) test was employed to establish the stationarity properties of the data or otherwise. Using the Ordinary Least Squares (OLS) estimation technique of Multiple Regression, the results (? = – 0.891, p < 0.05) revealed an indirect association between interest rates and stock prices in the Ghanaian context; which is consistent with the theoretical conclusion that an increase in interest rate results in a decrease in stock prices. Thus, in the light of this finding, it was recommended that policymakers should consider the stock market dynamics due to the significant relationship that exists between the two macroeconomic variables.

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The Impact of Infrastructure on Tourism: The Case of Sri Lanka

Asian Social Science ◽

10.5539/ass.v15n7p174 ◽

2019 ◽

Vol 15 (7) ◽

pp. 174 ◽

Cited By ~ 1

Author(s):

A. M. M. Mustafa

Keyword(s):

Time Series ◽

Sri Lanka ◽

Time Series Data ◽

Positive Impact ◽

Series Data ◽

Long Run ◽

Short Run ◽

The Government ◽

The Impact ◽

Adf Test

This study examines the impact of infrastructure on tourism development in Sri Lanka with greater emphasis on road network. The time period used in this study are ranging from year 2005 to year 2017. The annual time series data are analyzed by using statistical package, E-Views 10 after the preliminary calculations by using Microsoft Excel. The unit root of the variables is tested by ADF test to test the stationarity of the time series data used in the model of this study. Co-integration is tested with the use of Engle–Granger. The relationship of causality between the variables is found by test of Granger Causality. The results show that infrastructure has significant short run as well long run positive impact on tourism. Two-way causal relationship is found between tourism sector and infrastructure. Further, this study recommends that the government should play its role in improving the infrastructure facilities to increase tourist’s arrival in Sri Lanka.

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Impact of exchange rate and oil price on the yield of sovereign bond and sukuk: Evidence from Malaysian capital market

Journal of Emerging Economies and Islamic Research ◽

10.24191/jeeir.v5i4.8834 ◽

2017 ◽

Vol 5 (4) ◽

pp. 27

Author(s):

Huda Arshad ◽

Ruhaini Muda ◽

Ismah Osman

Keyword(s):

Exchange Rate ◽

Capital Market ◽

Time Series Data ◽

Oil Prices ◽

Oil Price ◽

Series Data ◽

Sovereign Bond ◽

Long Run ◽

Short Run ◽

The Impact

This study analyses the impact of exchange rate and oil prices on the yield of sovereign bond and sukuk for Malaysian capital market. This study aims to ascertain the effect of weakening Malaysian Ringgit and declining of crude oil price on the fixed income investors in the emerging capital market. This study utilises daily time series data of Malaysian exchange rate, oil price and the yield of Malaysian sovereign bond and sukuk from year 2006 until 2015. The findings show that the weakening of exchange rate and oil prices contribute different impacts in the short and long run. In the short run, the exchange rate and oil prices does not have a direct relation with the yield of sovereign bond and sukuk. However, in the long run, the result reveals that there is a significant relationship between exchange rate and oil prices on the yield of sovereign bond and sukuk. It is evident that only a unidirectional causality relation is present between exchange rate and oil price towards selected yield of Malaysian sovereign bond and sukuk. This study provides numerical and empirical insights on issues relating to capital market that supports public authorities and private institutions on their decision and policymaking process.

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THE IMPACT OF EXCHANGE RATE VOLATILITY ON ECONOMIC GROWTH IN NIGERIA: A DYNAMIC ECONOMETRIC APPROACH

African Journal of Business and Economic Development ◽

10.46654/ajbed.1533 ◽

2021 ◽

pp. 16-40

Author(s):

Comfort Akinwolere Bukola ◽

Keyword(s):

Economic Growth ◽

Exchange Rate ◽

Time Series Data ◽

Negative Impact ◽

Positive Impact ◽

Exchange Rate Volatility ◽

Series Data ◽

Balance Of Trade ◽

Econometric Approach ◽

The Impact

This study examined the impact of exchange rate volatility on economic growth in Nigeria. The study covers the period of 1986 to 2019. Using time series data, the methodology adopted is the Vector Error Correction Mechanism to explore the impact of exchange rate volatility on the selected macroeconomic variables. The result indicated that exchange rate volatility has a significant impact on economic growth, specifically it has a positive impact on inflation, unemployment and balance of trade. On the other hand it has a negative impact on economic growth and investment. The recommendations made include; that relevant authorities should try to avoid systematic currency devaluations in order to maintain exchange rate volatility at a rate that allows adjustment of the balance of payments.

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The Impact of Globalization on Human Development Index: A Case of Pakistan

Studies of Applied Economics ◽

10.25115/eea.v39i1.3710 ◽

2020 ◽

Vol 39 (1) ◽

Author(s):

Adiqa Kiani ◽

Noor Mohammad ◽

Raheem Bux Soomro

Keyword(s):

Human Development ◽

Human Development Index ◽

Time Series Data ◽

Positive Impact ◽

Series Data ◽

Development Index ◽

Long Run ◽

Political Dimensions ◽

The Impact ◽

Adf Test

The main objective of the study is to explore the short and long run relationship of globalization and human development index for 34 years during 1980 to 2014. In order to analyze economic, social and political dimensions of globalization separately for Pakistan economy. The time series data compiled from various sources including UNDP annual Human Development Reports, SPDC Social Development report, Pakistan Review 2005-06, World Bank and KOF. A semi-log model was used to explain the relationship, whereas some other models were also used to test the mobility of the variables. The test applied is ADF test and on the basis of ADF test results, the ARDL method of co integration was used to test long run impact of all independent variables on human development index. From the findings, we may conclude that globalization overall and social, political and economic globalization have positive impact on human development index for Pakistan, whereas some control variables like population density effects positively, and greenhouse gas emissions significantly and negatively affect the globalization. It is suggested that in order to improve the globalization, it is mandatory to focus on indirect effects of globalization and make necessary plans to reduce such emissions.

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China–Pakistan Economic Corridor, Logistics Developments and Economic Growth in Pakistan

Logistics ◽

10.3390/logistics5020035 ◽

2021 ◽

Vol 5 (2) ◽

pp. 35

Author(s):

Zunaira Khadim ◽

Irem Batool ◽

Muhammad Bilal Lodhi

Keyword(s):

Economic Growth ◽

Time Series Data ◽

Positive Impact ◽

Real Income ◽

Series Data ◽

Data Set ◽

Long Run ◽

Short Run ◽

Factor Inputs ◽

The Impact

The study aims to analyze the impact of China–Pakistan Economic Corridor (CPEC) logistics-related developments on economic growth in Pakistan. The study defined a Cobb–Douglas type of research framework in which the country’s real income level relates to four factor inputs, e.g., employed labor force, logistics development, financial development, and energy consumption in an economy. The study utilized the time series data set for the period 1972–2018. To estimate the long run relationship and short run adjustment mechanism, the study used Johansen’s method of co-integration and error correction model. Estimated results showed that the country’s logistics developments have a significant positive impact on economic growth in both the long run and the short run. It implies that China–Pakistan collaborative efforts for logistics developments will have a strong positive impact on economic growth in Pakistan.

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The Influence of Income and Currency Changes on Tourist Inflow to Norwegian Campsites: The Case of Swedish and German Visitors

Economies ◽

10.3390/economies9030104 ◽

2021 ◽

Vol 9 (3) ◽

pp. 104

Author(s):

Leiv Opstad ◽

Randi Hammervold ◽

Johannes Idsø

Keyword(s):

Exchange Rate ◽

Time Series Data ◽

Income Elasticity ◽

Positive Impact ◽

Tourism Industry ◽

Series Data ◽

A Value ◽

Industry Planning ◽

The Impact ◽

Overnight Stays

There are few published articles on the demand for campsites, despite this being an important segment of the tourism industry. The purpose of this study was to gain further understanding of this topic. Using publicly available data over a period of 20 years, income and currency elasticity were estimated for German and Swedish camping tourists by using a natural logarithmic regression model with time series data. The results showed that both income and the exchange rate influenced the number of overnight stays, but the impact was rather small. The income elasticity for Swedish visitors was significant with a value of about 0.5, while it was zero and not significant for German camping tourists. Appreciation of the euro was associated with more visitors from Germany, but the estimated exchange rate elasticity was below 1.0 (and significant). A stronger Swedish currency relative to the Norwegian currency did not appear to have an effect. However, a stronger Swedish exchange rate, measured in euros, had a positive impact on Swedish camping visitors in Norway. The reason might be that more Swedish residents spend holidays abroad, and there is complementarity among the neighboring countries. Such calculations provide useful information for tourist industry planning.

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Implication of Monetary Policy Rate and Interest Rate on Exchange Rate in Nigeria: 1981-2017

South Asian Journal of Social Studies and Economics ◽

10.9734/sajsse/2019/v4i130115 ◽

2019 ◽

pp. 1-11

Author(s):

Nnamani, Vincent ◽

Anyanwaokoro, Mike

Keyword(s):

Monetary Policy ◽

Exchange Rate ◽

Interest Rate ◽

Time Series Data ◽

Unit Root Test ◽

Series Data ◽

Statistical Tool ◽

Long Run ◽

The Exchange Rate ◽

The Impact

The study investigated the implication of monetary policy rate on the exchange rate and interest rate in Nigeria, 1981-2017. Because of the above-stated problems, the specific objectives are to: Investigate the effect of monetary policy rate on the exchange rate in Nigeria, determine the effect of the monetary policy rate on interest rate in Nigeria. The analysis of error correction and autoregressive lags fully covers both long-run and short-run relationships of the variable under study. The statistical tool of analysis employed in the study is Autoregressive Distributed Lags (ARDL) and Philips Peron method of stationary testing and structural breakpoint unit root test., these methods were employed to check the stationarity and breakpoint analysis of the time series data employed in this study. The study observed that monetary policy rate has a positive and significant effect on the exchange rate in Nigeria. It was also observed that the monetary policy rate has a positive and significant effect on the interest rate in Nigeria. Overall, our results indicated that the impact of monetary policy on the exchange rate was significant. There was a positive and significant relationship between monetary policy variables and exchange rate. The conclusion that is drawn from our results is that monetary policy remains an effective and potent tool for ensuring a stable exchange rate in Nigeria. The study recommended that monetary policy should be used to create a favourable investment environment by facilitating the emergence of market-based interest rate and exchange rate regimes which could attract domestic and foreign investments. Second; the Central bank of Nigeria (CBN) need to avoid ordination and balance between monetary and fiscal policies to ensure the smooth realization of monetary policy goals. Policy inconsistency or summersault to determine its policy impact before contemplating a change. Finally, there should be a coo.

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

Journal of Accounting and Finance in Emerging Economies ◽

10.26710/jafee.v6i4.1477 ◽

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.

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The Assessment of Governance on Child Labor in evidence of Pakistan

iRASD Journal of Economics ◽

10.52131/joe.2019.0101.0005 ◽

2019 ◽

Vol 1 (1) ◽

pp. 59-67

Author(s):

Syed Wajahat Ali ◽

Faiqua Gul

Keyword(s):

Developing Countries ◽

Child Labor ◽

Time Series Data ◽

Good Governance ◽

Positive Impact ◽

Series Data ◽

The Public ◽

Short Run ◽

And Performance ◽

The Impact

The aim of this study is to explore the impact of Governance on Child Labor. We all know, child labor is most pressing issue in developing countries and illiteracy, less per capita income, malnutrition and lack of development has added the impact. In article, we discussed the types of Governance and explores some other factors which impede and promote the public sector responsibilities towards children. We also highlighted the methodologies of assessment and performance of governments as protectors of children rights according to international commitments i.e. SDG’s, In study, the dependent variable is Child Labor, while the independent variables are Governance, Population Growth Rate, Literacy Rate, Gross Domestic Product and Number of Schools. Time series data is used in range of 1990 to 2018. Augmented Dicky Fuller test is used to check the stationarity of the data. ARDL technique is applied on variables to check the long and short run relationship. The result shows an inverse relation between child labor and Governance, GDP, Literacy and number of schools as improvement in these indicators will decrease child labor. However, Population and child labor has a positive impact, by increasing population child labor will be increased. Impactful policies, good governance and better leadership are the only tools that can be helpful to tune child labor problem in developing countries.

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