scholarly journals Test of Monetary Approach to Balance of Payments in West Africa Monetary Zone

2020 ◽  
Vol 4 (1) ◽  
pp. 9-17
Author(s):  
Foluso Ololade Oluwole ◽  
John Adebayo Oloyede
Keyword(s):  
Exchange Rate ◽  
West Africa ◽  
Positive Relationship ◽  
Positive Impact ◽  
Negative Relationship ◽  
Rate System ◽  
Net Foreign Assets ◽  
Monetary Approach ◽  
Domestic Credit ◽  
Foreign Assets

This research tested the monetary approach to Balance of Payment in developing countries of West Africa in order to affirm whether the specified relationship in the approach depicts correctly the actual behaviour of the economies. Time series and cross-sectional data that ranges from 1970 – 2016 were used. The empirical results of the fixed effect model established a significant positive relationship between net domestic credit, interest rate and exports; an insignificant positive relationship between capital movements, imports, income and the dependent variable. Exchange rate, however, had a significant negative relationship with the net foreign assets, while inflation had an insignificant but negative relationship with net foreign assets. The pairwise causality tests indicated a unidirectional relationship between exchange rate, net domestic credit and net foreign assets while the other variables move independently and cannot granger cause net foreign assets. Hence, the study concludes that the Polak model is valid in the West Africa Monetary Zone despite the fact that they are no more operating a fixed exchange rate system. The study suggests that the attention of the monetary authorities and the governments should not only be on decreasing the money supply in the economy, since an increase in net domestic credits has a positive impact on the net foreign assets provided it is channeled towards domestic production.

scholarly journals APLIKASI PENDEKATAN KESEIMBANGAN PORTOFOLIO TERHADAP NILAI TUKAR RUPIAH/DOLLAR AMERIKA

2012 ◽  
Vol 1 (1) ◽  
pp. 1
Author(s):  
Nurbetty Herlina Sitorus
Keyword(s):  
Exchange Rate ◽  
Balance Model ◽  
Rate System ◽  
Net Foreign Assets ◽  
Portfolio Balance ◽  
Balance Approach ◽  
Floating Exchange Rate ◽  
Exchange Rate System ◽  
The Exchange Rate ◽  
Foreign Assets

Since the adoption of freely floating exchange rate system, the rupiah against the U.S. dollar continues to fluctuate. This has stimulated research on the instability of the rupiah and the factors that influence it. This study aims to analyze the variables that affect the exchange rate using the  portfolio balance approach. The portfolio balance approach is an extension of the monetary theory by incorporating a combination of assets other than domestic currency. The results  of the portfolio balance approach shows some variables that affect the exchange rate are Indonesia’s money supply (broad money), Indonesia’s net foreign assets and United States’ net foreign assets. It was also found that the speed of adjustment of the portfolio balance approach is 60,56. From this finding, it can shows that the portfolio balance model can be a good reference for explaining the movements of Indonesian Rupiah – US dollar exchange rate.

scholarly journals Net foreign assets and the exchange rate: Redux revived

2002 ◽  
Vol 49 (5) ◽  
pp. 1057-1097 ◽  
Author(s):  
Michele Cavallo ◽  
Fabio Ghironi
Keyword(s):  
Exchange Rate ◽  
Net Foreign Assets ◽  
The Exchange Rate ◽  
Foreign Assets

scholarly journals Effect of macroeconomic variables on systemic risk: Evidence from Vietnamese economy

2021 ◽  
Vol 10 (3) ◽  
pp. 217-228
Author(s):  
Thi Xuan Huong Tram ◽  
Nguyen Thi Thanh Hoai
Keyword(s):  
Economic Growth ◽  
Exchange Rate ◽  
Interest Rate ◽  
Interest Rates ◽  
Systemic Risk ◽  
Fixed Effects ◽  
Positive Impact ◽  
Generalized Method Of Moments ◽  
Negative Relationship ◽  
Ordinary Least Squares

This paper aims to find out the relationship between systemic risk in Vietnam and the effects of macroeconomic factors, including exchange rate, interest rates, and economic growth. We collect data from the Vietnamese stock market, specifically 29 listed financial firms (banks, insurance companies, and securities firms) for the period 2010-2018. The analysis is performed in two steps including systematic risk measurement in Vietnam based on the Systemic Expected Shortfall (SES) method and providing evidence from analysis related to the risk determinants assessment. Besides ordinary least squares (OLS) methods, we make use of fixed-effects (FEM) estimations, random-effects (REM) estimations, and system generalized method of moments (SGMM). The empirical evidence in this paper indicates that economic growth has a negative relationship on systemic risk in Vietnam while the exchange rate has a positive impact on systemic risk, and the interest rate has a negative relationship on systemic risk in Vietnam. Future studies can address the effects of interest rate on systemic risk during this period.

Foreign Portfolio Investment and Performance of the Nigerian Capital Market

2018 ◽  
Vol 2 (1) ◽  
pp. 11-25
Author(s):  
Nwonodi Daniel Ikezam
Keyword(s):  
Exchange Rate ◽  
Capital Market ◽  
Positive Relationship ◽  
Price Index ◽  
Negative Relationship ◽  
Share Price ◽  
Portfolio Investment ◽  
Equity Investment ◽  
Foreign Portfolio Investment ◽  
Market Capitalization

This study examined the effect of foreign portfolio investment on the performance of Nigerian capital market. The specific objectives are to investigate the impact of Net Foreign Portfolio Investment, Foreign Portfolio Investment in Equity, Foreign Portfolio Investment in Bonds, Foreign Portfolio in Government Securities and Nigerian Exchange Rate per US Dollar on the performance of Nigerian Capital Market. The required data were sourced from Central Bank of Nigeria (CBN) Statistical Bulletin and Stock Exchange Annual Report. The study has All Share Price Index and Market Capitalization as proxy for Capital market performance while Net Foreign Portfolio Investment (NFPI), Equity Investment (PIE), Bond Investment (PIB), Portfolio Investment in Government Securities (PIGS) and Exchange Rate as predictors variables. The Ordinary Least Square multiple regressions with econometric view were used as data analysis techniques. Cointegration test, Granger Causality Test, Augmented Dickey Fuller Test and Error Correction Model were used to examine the variables and its relationship to the dependent variables. Model one  revealed that foreign portfolio investment in bonds and foreign portfolio investment in government securities have negative relationship with All Share Price Index while Net Foreign Portfolio investment, foreign portfolio investment in equities and exchange rate have positive relationship with All Share Price Index. Model two revealed that Net Foreign Portfolio Investment, Portfolio Investments in Bonds and Government securities has negative relationship with market capitalization while equity investment and exchange rate have positive relationship with market capitalization. The study concludes that foreign portfolio investment have significant relationship with Nigerian capital market performance. It therefore recommends that policies should be devised to enhance the operational efficiency of the Nigerian capital market, to attract foreign investors.

scholarly journals IMPACT OF ENVIRONMENT, ENERGY AND FOREIGN DIRECT INVESTMENT ON EXPORTS OF SELECTIVE SAARC COUNTRIES

2020 ◽  
pp. 106-113
Author(s):  
Wajiha Manzoor ◽  
Nabeel Safdar
Keyword(s):  
Foreign Direct Investment ◽  
Sri Lanka ◽  
Direct Investment ◽  
Positive Impact ◽  
Negative Relationship ◽  
Domestic Credit ◽  
Relationship Of ◽  
The Impact ◽  
The Relationship ◽  
Foreign Direct Investment Inflows

This study focused on the relationship of environment, energy used and foreign direct investment inflows on exports of selective SAARC countries including Pakistan , Bangladesh , India , Sri Lanka and Nepal from 1980-2018. The results revealed that environment has significant positive impact on exports. Energy has also positive impact on exports except Pakistan and Nepal where results showed negative relationship. The FDI inflow in India and Sri Lanka has not significant impact on exports while other three countries has significant impact on exports of those countries. Overall environment, energy used and foreign direct investment inflows have positive impact on export while controlling the impact of inflation, GDP growth, reserves and domestic credit to private sector in SAARC countries.

scholarly journals Determinants of Dividend Policy in India – Special Reference to Nifty 50 Companies

2021 ◽  
Vol 9 (2) ◽  
pp. 37-42
Author(s):  
Kashish Katakwar ◽  
Satyan Tenguriya ◽  
Prashant Chhajer ◽  
Vishal Mehta ◽  
Vandana Gandhi
Keyword(s):  
Regression Analysis ◽  
Positive Relationship ◽  
Dividend Policy ◽  
Positive Impact ◽  
Negative Relationship ◽  
Dividend Payout ◽  
Return On Equity ◽  
Tax Rate ◽  
Equity Risk ◽  
The Impact

Dividend policy is the firm’s policy considered to structure the dividend payout of the shareholder of the company. Various factors are responsible for determining the dividend payout of the firm. In this research paper, we are exploring the determinants of the dividend policy of NSE, Nifty 50. This paper studies the impact of six basic variables on the dividend payout of NSE, Nifty 50 Index companies for the financial year 2015-16 to 2019-2020. These factors include liquidity, leverage, firm size, return on equity, risk and tax rate. Multiple regression analysis was used to study the impact of selected variables on the dividend policy of the companies under study. The results reveal that return on equity has a significant positive impact on dividend payout, whereas risk and tax rate have a significant negative impact.In contrast, there is a positive relationship and zero significance was found between liquidity and dividend payout and leverage and dividend payout. A negative relationship and no significance was found between the size of the firm and dividend payout. This means that liquidity, leverage and size of the firm failed to have any significant impact on the dividend payout of the companies under study. 

Sign in / Sign up

Export Citation Format

Share Document