scholarly journals Long-Run Determinants of Nigerian Inflation Rate: ARDL Bounds Testing Approach

2021 ◽  
Vol 18 ◽  
pp. 1370-1379
Author(s):  
Mohamed R. Abonazel ◽  
Fuad A. Awwad ◽  
Kingdom Nwuju ◽  
Adewale F. Lukman ◽  
Ifeoma B. Lekara-Bayo ◽  
...  
Keyword(s):  
Exchange Rate ◽  
Inflation Rate ◽  
Money Growth ◽  
Bounds Testing ◽  
Long Run ◽  
Oil Export ◽  
Bounds Testing Approach ◽  
Testing Approach ◽  
Cointegration Relationship ◽  
Ardl Bounds Testing Approach

Inflation is a problem in all facets of life and all economic entities. The government of any nation is concerned with ensuring that her plans are not frustrated by unpredictable and galloping prices. This paper studies the dynamic causal relationship between inflation rate (measured by consumer price index (CPI)), exchange rate, gross domestic product (GDP), money growth, and oil export in Nigerian during 2005: Q1 to 2019: Q4. The ARDL bounds testing approach and error correction model were used to verify whether there was a long-term relationship between the inflation rate and four determinants (exchange rate, GDP, money growth, and oil export). The results of our study showed that the current inflation CPI, the exchange rate, GDP, and money growth would still affect the next quarter's inflation rate in Nigeria. However, the oil export has no significant effect on the inflation rate. Moreover, we find the long-run cointegration relationship between inflation CPI, the exchange rate, and money. The cointegration relationship will be achieved in a short time (during the next two quarters of the year).

Relationship between Foreign Institutional Investment, Exchange Rate and Foreign Exchange Reserves: The Case of India using ARDL Bounds Testing Approach

GIS Business ◽  
2019 ◽  
Vol 10 (1) ◽  
pp. 33-39
Author(s):  
Niti Bhasin ◽  
Vartika Khandelwal
Keyword(s):  
Exchange Rate ◽  
Foreign Exchange ◽  
Foreign Exchange Reserves ◽  
Bounds Testing ◽  
Institutional Investment ◽  
Long Run ◽  
Ardl Bounds Testing ◽  
Bounds Testing Approach ◽  
Testing Approach ◽  
Ardl Bounds Testing Approach

Foreign institutional investment (FII) is believed to affect real economy of a country through its impact on factors such as exchange rates and foreign exchange reserves. Similarly, exchange rate movements are also believed to affect the FII coming to the country and foreign exchange reserves of the country. In the light of recent volatility in the movements of these variables, we examine the long-run and short-run relationship between these three variables. Using monthly data for the period September 1993 to July 2013, this paper employs the more recent and robust auto-regressive distributed lag (ARDL) bounds testing approach to study the relationship among these three variables. The results indicate strong evidence of a long-run relationship between FII as dependent variable and exchange rate and foreign exchange reserves as independent variables. We also find exchange rate to be a significant determinant of FII movements.

Investigating the Long-run and the Short-run Relationship Between Domestic Macroeconomic Forces and Indian Equity Market: Evidence Based on ARDL Bounds Testing Approach

Paradigm ◽  
2021 ◽  
pp. 097189072110037
Author(s):  
Animesh Bhattacharjee ◽  
Joy Das
Keyword(s):  
Exchange Rate ◽  
Foreign Exchange ◽  
Equity Market ◽  
Foreign Exchange Rate ◽  
Bounds Testing ◽  
Long Run ◽  
Short Run ◽  
Bounds Testing Approach ◽  
Testing Approach ◽  
Ardl Bounds Testing Approach

Understanding the effect of domestic macroeconomic forces on equity market is essential since macroeconomic forces have a systematic effect on the equity market returns. The present study uses monthly observations from India for the period from January 2012 to December 2019 to investigate the long-run and short-run relationship between the domestic macroeconomic forces and equity market. The study employed the autoregressive distributed lag (ARDL) bounds testing approach and pair-wise granger causality test to attain the objective. The long-run empirical results indicated that the Indian equity market and the domestic macroeconomic forces are cointegrated. The long-run coefficients of foreign exchange rate and money supply are found to be significant. The short-run coefficients suggest that money supply, inflation and foreign exchange rate significantly influence the Indian equity market. The study also observed the presence of feedback mechanism between foreign exchange rate and Indian equity market. The study provides the policy and managerial implications.

Investigating the Long-run and the Short-run Relationship Between Domestic Macroeconomic Forces and Indian Equity Market: Evidence based on ARDL Bounds Testing Approach

Paradigm ◽  
2021 ◽  
pp. 097189072098767
Author(s):  
Animesh Bhattacharjee ◽  
Joy Das
Keyword(s):  
Exchange Rate ◽  
Foreign Exchange ◽  
Equity Market ◽  
Foreign Exchange Rate ◽  
Bounds Testing ◽  
Long Run ◽  
Short Run ◽  
Bounds Testing Approach ◽  
Testing Approach ◽  
Ardl Bounds Testing Approach

Understanding the effect of domestic macroeconomic forces on equity market is essential since macroeconomic forces have a systematic effect on the equity market returns. The present study uses monthly observations from India for the period from January 2012 to December 2019 to investigate the long-run and short-run relationship between the domestic macroeconomic forces and equity market. The study employed the autoregressive distributed lag (ARDL) bounds testing approach and pair-wise granger causality test to attain the objective. The long-run empirical results indicated that the Indian equity market and the domestic macroeconomic forces are cointegrated. The long-run coefficients of foreign exchange rate and money supply are found to be significant. The short-run coefficients suggest that money supply, inflation and foreign exchange rate significantly influence the Indian equity market. The study also observed the presence of feedback mechanism between foreign exchange rate and Indian equity market. The study provides the policy and managerial implications.

scholarly journals An ARDL Approach to Check the Linkage Between Economic Growth, Electricity Access, Energy Use and Population Growth in Pakistan: Long-run and Short-run Analysis

2018 ◽  
Author(s):  
Abdul Rehman ◽  
Zhang Deyuan
Keyword(s):  
Economic Growth ◽  
Population Growth ◽  
Urban Population ◽  
Energy Use ◽  
Bounds Testing ◽  
Long Run ◽  
Bounds Testing Approach ◽  
Testing Approach ◽  
Electricity Access ◽  
Ardl Bounds Testing Approach

The major aim of this study was to investigate and explores the linkage between economic growth, electricity access, energy use and population growth in Pakistan. To check the variables stationarity, Augmented Dickey-Fuller (ADF) and Phillips-Perron unit root test was applied and an Autoregressive Distributed Lag (ARDL) bounds testing approach to co-integration was applied to investigate the dynamic causality link among the study variables. These tests shed light on the long-run connection among the variables; further, the results revealed that electricity access to population, electricity access to urban population, energy usage, population growth, and urban population growth had a significant impact on economic growth, while the electricity access to rural population and rural population growth has a negative impact on the economic growth in Pakistan. According to these findings, study commends that government of Pakistan pay further attention to increase its electricity production from different sources including, hydroelectric, solar, oil and gas and nuclear in order to fulfill the country’s demands. By using ARDL bounds testing approach, this study filled the literature gap regarding economic growth, electricity access, energy use and population growth in Pakistan.

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