scholarly journals Modelling short-run and long-run predictors of foreign portfolio investment volatility in low-income Southern African Development Community countries

2020 ◽  
Vol 13 (1) ◽  
Author(s):  
Kuziva Mamvura ◽  
Mabutho Sibanda
Keyword(s):  
Low Income ◽  
Southern African Development Community ◽  
Portfolio Investment ◽  
Foreign Portfolio Investment ◽  
African Development ◽  
Long Run ◽  
Short Run

scholarly journals Impact of Terrorism on Foreign Portfolio Investment in Pakistan

2015 ◽  
Vol 03 (02) ◽  
pp. 68-74
Author(s):  
Irfan Ullah ◽  
◽  
Muhammad Bilal Saeed
Keyword(s):  
Trade Openness ◽  
Unit Root Test ◽  
Annual Data ◽  
Portfolio Investment ◽  
Short Term ◽  
Foreign Portfolio Investment ◽  
Long Run ◽  
Negative Effect ◽  
Short Run ◽  
Push And Pull

This study explored the long and short run impact of Terrorism on Foreign Portfolio Investment (FPI) in Pakistan using annual data from 1995 to 2013. The stationarity of data is analyzed by using unit root test. The long run relationship is captured using Johansen and Juselius Cointegration test. The short term impact was tested through Vector Error Correction Model. The results reveal significant negative effect of Terrorism on FPI. The results best fit the concept of push and pull theory. The relation of FPI and market size is negative, and highly positive with Trade Openness and Real Interest Rate. There is also significant short term relationship between Terrorism and FPI. This study suggests that careful policies should be implemented for the purpose of minimizing terrorist activities in order to enhance FPI in Pakistan.

scholarly journals FINANCIAL MARKET PERFORMANCE AND FOREIGN PORTFOLIO INFLOWS TO NIGERIA: AUTOREGRESSIVE DISTRIBUTIVE LAG APPROACH

2017 ◽  
Vol 5 (6) ◽  
pp. 673-688
Author(s):  
Adesola W. Adebisi ◽  
Oka Felix Arikpo
Keyword(s):  
Stock Market ◽  
Causal Relationship ◽  
Financial Market ◽  
Market Performance ◽  
Market Liquidity ◽  
Portfolio Investment ◽  
Foreign Portfolio Investment ◽  
Long Run ◽  
Stock Market Performance ◽  
Short Run

This study examined the relationship between financial market performance and foreign portfolio investment in Nigeria. The study specifically assessed whether there is a long run and short run causal relationship running from financial market performance to foreign portfolio investment in Nigeria. Financial market performance was measured using stock market performance, stock market liquidity and total new issues. The data for the study were source from the CBN statistical bulletin for the period 1984 to 2015. The exploratory design was combined with the ex-post facto research design; the data collection method was desk survey. The study used the Autoregressive Distributive Lag (ARDL) technique for data analysis. Findings from the analyses showed that financial market performance has no long run causal relationship with foreign portfolio investment in Nigeria. Also, stock market performance and stock market liquidity have no short run causal relationship with foreign portfolio investment in Nigeria. Lastly, total new issue has a short run causal relationship with foreign portfolio investment in Nigeria. The study on the basis of these findings recommends that stock market regulators should through conscious enlightenment campaigns encourage more domestic participation in the market to enhance the market performance, deepening and growth as this will strengthen its long run causality with FPI. Lastly, stock market regulators should through conscious risk reduction policies formulation and implementation reduce the riskiness of investing in the stock market to increase transactions and liquidity in the stock market, boost the rate of turnover to investors as this will attract foreign portfolio investors to the Nigerian financial market.

Interplays Between Methane Emission and Agricultural Output

2020 ◽  
Vol 11 (4) ◽  
pp. 56-69
Author(s):  
Ramesh Chandra Das ◽  
Arundhati Mukherjee
Keyword(s):  
Low Income ◽  
Methane Emissions ◽  
Low Income Countries ◽  
Middle Income ◽  
Agricultural Output ◽  
Methane Generation ◽  
Developed Economies ◽  
Middle Income Countries ◽  
Long Run ◽  
Short Run

There have been debates among the so-called developed economies and less developed and emerging economies on the issue of ‘who is responsible for' the emission of excessive greenhouse gases (GHGs) into the ambient environment. While methane emissions from agriculture and livestock is one of the important elements of GHGs, it is also required for growth of the agriculture and allied activities for all economic categories. The present study, under this backdrop, examines long run and short run linkages between methane emissions and agriculture outputs for high and low to upper middle-income countries for the period 1981-2012. The results show that the series of methane emissions and agriculture output are cointegrated in the 15 member Organization for Economic Co-operation and Development (OECD) group, low income and middle income countries signifying the responsibilities of these income groups in methane emissions. The responsible countries in the OECD are USA, UK, Japan, Germany, and Italy. Further, in short run dynamics, the Granger Causality results show that methane emissions make a cause to agriculture output for 15OECD and low-income countries, and agricultural output is a cause to methane generation for middle and all low to upper middle income countries. China, India, and Brazil cannot be blamed for making excessive methane generation as both the series are not cointegrated for them.

scholarly journals Modelling the impact of oil price fluctuations on food price in high and low-income oil exporting countries

2020 ◽  
Vol 66 (No. 10) ◽  
pp. 458-468
Author(s):  
Chen Ding ◽  
Umar Muhammad Gummi ◽  
Shan-bing Lu ◽  
Asiya Muazu
Keyword(s):  
Least Squares ◽  
Low Income ◽  
Ordinary Least Squares ◽  
Food Prices ◽  
Oil Price ◽  
Low Income Countries ◽  
Long Run ◽  
Oil Markets ◽  
Short Run ◽  
The Impact

Oil exporting economies were the most hit by the recent oil price shock that spills on the food market in an increasingly volatile macroeconomic environment. This paper examines and compares sub-samples [before crisis <br />(2000 Q1–2013 Q1) and during crisis (2013 Q2–2019 Q4)] as to the impact of oil price on food prices in high- and low-income oil-exporting countries. We found an inverse relationship between oil and food prices in the long run based on full samples and sub-samples in high-income countries. The story is different during the crisis period: in low-income countries and all the countries combined, oil and food prices co-move in the long run as measured by the Fully Modified Ordinary Least Squares (FMOLS) and Dynamic Ordinary Least Squares (DOLS). Our findings suggest that economic structure and uncertain events (crises) dictate the behaviour and relationship between food and oil markets. Food and oil prices may drift away in the short-run, but market forces turn them toward equilibrium in the long-run. Moreover, low-income countries are indifferent in both periods due to limited capacity to balance the increasing demand for and supply of food items.

Long-run Association Between Bank Credit and Output: A Study on Districts’ Panel of West Bengal, India

2020 ◽  
pp. 097215092091844
Author(s):  
Ramesh Chandra Das ◽  
Soniya Chavan
Keyword(s):  
Low Income ◽  
West Bengal ◽  
Panel Cointegration ◽  
Bank Credit ◽  
Low Income Countries ◽  
Vector Error Correction ◽  
Data Framework ◽  
Long Run ◽  
Short Run ◽  
Per Capita

In a globalized world, the financial sectors and the real sectors are interlinked. Although it is a common phenomenon to a developed economy in its national as well as provincial levels, it has hardly been tested for the low-income countries like India. It is further difficult to have such linkage effects at the provinces and district levels. This article aims to examine whether per capita commercial bank credit and per capita net district domestic product for the districts of West Bengal state in India have long-run associations for the period 1993–2014 in a panel data framework. Using the panel cointegration and Vector error correction mechanism (VECM) technique, the study reveals that both the financial and real sector indicators are cointegrated and the short-run errors are corrected significantly to establish that there is bilateral causality between credit and output in both long run and short run.

scholarly journals Knowledge-Based Economy Capacity Building for Developing Countries: A Panel Analysis in Southern African Development Community

2021 ◽  
Vol 13 (5) ◽  
pp. 2890
Author(s):  
Koketso Phale ◽  
Fanglin Li ◽  
Isaac Adjei Mensah ◽  
Akoto Yaw Omari-Sasu ◽  
Mohammed Musah
Keyword(s):  
Economic Growth ◽  
Dynamic Models ◽  
Positive Impact ◽  
Panel Data Analysis ◽  
Southern African Development Community ◽  
African Development ◽  
Knowledge Based ◽  
Knowledge Based Economy ◽  
Long Run ◽  
Average Impact

The Southern African Development Community is lagging behind in terms of knowledge economy relative to other regions worldwide. This dramatically reduces the chances of keeping up with their economically established counterparts in terms of sustainable development. This paper therefore, applies multivariate panel data analysis which is predicted on the Cobb–Douglas production function to analyze the affiliation flanked by knowledge-based economy pillars and economic growth from 1998–2018. The World Bank knowledge-based economy framework is employed. To achieve the study goal, the long-run effect regarding proxies of each pillar in the knowledge-based economy on economic growth is first estimated. Afterwards, the average impact of each pillar is examined using the average impact index (AII). Employment of both conventional unit root and co-integration tests showed all observed series are stationary and co-integrated. Further estimation of the long-run relationship using both static and dynamic models (fixed effect and generalized method of moment) portrayed that government effectiveness, adjusted savings on education expenditure, tertiary enrollment, scientific and technical journals, and mobile cellular subscriptions have significant positive impact on economic growth. Finally, the AII estimation unveiled that the innovation pillar is the most impactful aspect on economic growth followed by education and skills with the least being information and communication technology infrastructure. Feasible policy recommendations are further suggested.

scholarly journals Energy Consumption, Environmental Degradation and Growth: A Panel Data Analysis

2020 ◽  
pp. 1-6
Author(s):  
Sayed Kushairi Sayed Nordin ◽  
Siok Kun Sek
Keyword(s):  
Economic Growth ◽  
Carbon Dioxide ◽  
Energy Consumption ◽  
Environmental Degradation ◽  
Low Income ◽  
Cointegration Test ◽  
Low Income Countries ◽  
Long Run ◽  
Short Run ◽  
The Relationship

Energy is essential as an input to develop economic, although it could bring negative effect on environmental quality. The relationship between energy consumption, environmental degradation and economic growth have been widely studied, but there is no consistency in the relationship. The objectives of this study are to determine the short-run relationship (one-way or bidirectional) and to reveal the long-run relationship for each pair of variables. The second-generation panel unit root and cointegration test were used in the analysis. Breusch-Pagan LM test suggests that there is a cross-sectional dependency for all the models and integrated of order one, I (1). Cointegration test indicates that economic growth has long-relationship with carbon dioxide and energy consumption in high-income countries. In low-income countries, carbon dioxide has a long-run relationship with energy consumption and economic growth. In the short run, we have evidence of a bidirectional relationship between energy consumption and economic growth in high-income countries but a one-way relationship in low-income countries. Overall, it can be concluded that the three variables are related. This study develops a deeper awareness and understanding of the relationship between the variables in distinct levels of economies. Keywords: energy consumption; CO2, economic growth

scholarly journals Impact of Foreign Direct Investment, Foreign Portfolio Investment and Diaspora Remittances on Kenya’s Economic Growth

2021 ◽  
Vol 06 (11) ◽  
Author(s):  
Joan Serem ◽  
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Gross Domestic Product ◽  
Direct Investment ◽  
Domestic Product ◽  
Portfolio Investment ◽  
Foreign Portfolio Investment ◽  
Short Run ◽  
Auto Regressive ◽  
Level Of Significance

The Objective of this study is to find out the effect of capital flows on economic growth in Kenya, With Three specific objectives; To investigate the effect of foreign direct investment on economic growth in Kenya, to find out the effect of foreign portfolio investment on economic growth in Kenya, and to determine the effect of diaspora remittances on economic growth in Kenya. Quarterly data from 2002 to 2017 was used in the study, and Descriptive research design and inferential research design were used to analysis the data. Descriptively, mean and standard deviation were used and Inferentially the Auto regressive distribution Lag technique using the STATA software Version 15. Diagnostic tests were conducted on the data; Normality test using Jarque Bera test supported by the skewness and Kurtosis results; Unit root was tested using the Augmented Dickey Fuller Test .The Auto Regressive Distributed Lag regression short run results show that, foreign direct investment had an positive and insignificant effect on gross domestic product, whereas foreign portfolio investment had a positive and statistically significant short run effect on gross domestic product at 1% level of significance and diaspora remittances had a positive and very significant effect of gross domestic product at 5% level of significance. The Error Correction Model regression results showed that in the long run, Foreign Direct Investment, Foreign Portfolio Investment, and Diaspora Remittances had a positive and very significant effect on the economic growth at 1% level of significance.

scholarly journals COVID 19 and Bank Profitability in Low Income Countries: The Case of Uganda

2021 ◽  
Vol 14 (12) ◽  
pp. 588
Author(s):  
Lorna Katusiime
Keyword(s):  
Interest Rate ◽  
Low Income ◽  
Banking Sector ◽  
Low Income Countries ◽  
Bank Profitability ◽  
Treasury Bill ◽  
Long Run ◽  
Lending Rate ◽  
Short Run ◽  
The Impact

This study investigates the impact of the COVID-19 pandemic on banking sector profitability in Uganda for the period spanning Q1 2000 to Q1 2021, using the autoregressive distributed lag (ARDL Bound) testing approach to co-integration while controlling for bank specific and macroeconomic determinants of bank profitability. Bank profitability is proxied by return on assets (ROA), return on equity (ROE), and net interest margin (NIM). The study finds that the COVID 19 pandemic has a significant negative effect on bank profitability only in the long run. Generally, the explanatory variables used in the study have short run and long run effects on bank profitability, although the impact is not uniform across the different measures of bank profitability. In the short run, bank profitability is generally negatively and significantly affected by the non-performing loans ratio, liquidity ratio, and market sensitivity risk, while the Treasury Bill interest rate and lending rate have a significant positive effect on bank profitability. In addition, the study finds that bank profitability has a tendency to persist in the short run, although persistence is only moderate, suggesting that the Ugandan banking sector may not have large deviations from a perfectly competitive market structure. In the long run, bank profitability is broadly positively and significantly affected by the non-performing loan ratio;, real GDP, lending rate and Treasury Bill interest rate while market sensitivity risk and the exchange rate significantly and negatively affect bank profitability. Surprisingly, the study finds inflation does not significantly affect bank profitability over both the short- and long-term.

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