scholarly journals Determinants of Private Investment in Pakistan

2020 ◽  
Vol 2 (3) ◽  
pp. 86-92
Author(s):  
Muhammad Suleman ◽  
Abdur Rehman ◽  
Haroon Javaid
Keyword(s):  
Growth Rate ◽  
Public Sector ◽  
Time Series Data ◽  
Trade Openness ◽  
Private Investment ◽  
Series Data ◽  
Distributed Lag ◽  
Long Run ◽  
Domestic Savings ◽  
Short Run

Private investment has a significant relation with the economic growth of the country. It plays an important role in reduction of unemployment and poverty by promoting efficiency and competition among the firms. This study is an attempt to investigate the determinants of private investment in Pakistan. For this purpose, time-series data is utilized for the period 1974-2013. The ARDL (Auto Regressive-Distributed Lag) modeling technique of co-integration was employed to estimate the short-run and long-run determinants of private investment in Pakistan. Empirical findings of this study indicated that in the short-run private investment in Pakistan is determined by the growth rate of GDP, public sector investment, and domestic savings. While in the long run it is determined by the official exchange rate, the growth rate of GDP, public sector investment, domestic savings, trade openness, and interest rate. The results also revealed that in the case of Pakistan different political regimes (democratic, non-democratic) have no significance in the determination of private investment. Stability tests of CUSUM and (CUSUMSQ) (Cumulative Sum Control Chart) were performed in this study. These tests indicated a stable, long run as well as short-run structural stability of the model.

Determinants of environmental degradation in Saudi Arabia: exploring the unexplored

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Muhammad Tahir ◽  
Arshad Hayat ◽  
Umar Burki
Keyword(s):  
Saudi Arabia ◽  
Environmental Degradation ◽  
Time Series Data ◽  
Trade Openness ◽  
Negative Relationship ◽  
Series Data ◽  
Content Type ◽  
Distributed Lag ◽  
Long Run ◽  
Short Run

Purpose Environmental degradation is recognized as a serious problem globally, and hence, Saudi Arabia is no exception. This paper aims to focus on the economy of Saudi Arabia to identify the determinants of environmental degradation. Design/methodology/approach Time series data spanning from 1971 to 2014 is used and analyzed using the recently developed autoregressive distributed lag modeling approach. Findings The obtained results reflected that natural resources, per person income and urbanization, have impacted environmental degradation both positively and significantly in the long run. Similarly, an insignificant negative relationship is established between trade openness and environmental degradation. Moreover, energy consumption has positively but insignificantly affected environmental degradation. In the short run, only per capita income has positively influenced environmental degradation while the rest of the variables have lost either significance levels or their direction of relationship has reversed. Originality/value As this is a pioneering study on the economy of Saudi Arabia, therefore, the authors assume that policymakers will find the findings of the current study very useful while formulating and implementing policies to control environmental degradation.

scholarly journals Lending rate and firms’ investment decisions : Evidence from Ghana

2017 ◽  
Vol 5 (2) ◽  
pp. 141
Author(s):  
Joseph Amo ◽  
Hadrat M. Yusif
Keyword(s):  
Time Series Data ◽  
Negative Impact ◽  
Investment Decision ◽  
Private Investment ◽  
Series Data ◽  
Distributed Lag ◽  
Long Run ◽  
Lending Rate ◽  
Short Run ◽  
The Impact

This paper has examined the impact of lending rate on firms’ investment decision in Ghana. The Autoregressive Distributed Lag (ARDL) estimation framework was applied to time series data from 1980 to 2011. We found that lending rate has significant negative impact on private investment in both short run and long run in Ghana. It was also found that real GDP has a significant direct impact on private investment in both the short run and the long run periods. Our findings have important implications for investment policy in Ghana.

scholarly journals FINANCIAL CRISES AND ECONOMIC GROWTH OF NIGERIA

2021 ◽  
Vol 8 (1) ◽  
pp. 13-33
Author(s):  
Ogbebor Peter ◽  
◽  
Awonuga Adesola ◽  
Ezenwa Anthony ◽  
Oamen Gregory ◽  
...  
Keyword(s):  
Economic Growth ◽  
Financial Crises ◽  
Time Series Data ◽  
Positive Impact ◽  
Trade Openness ◽  
Series Data ◽  
Distributed Lag ◽  
Long Run ◽  
Short Run ◽  
The Government

The effects of financial crises on economic growth of countries are destabilizing and research interests in this area in the case of Nigeria has not be sufficiently exhibited, hence, this study. The study examined the effect of financial crises on economic growth in Nigeria using time series data that covered a period from 1986 to 2019. For data analysis, the major empirical tools utilized are Autoregressive Distributed Lag (ARDL) Co-integration and ECM techniques, following the result of the unit root tests that revealed mixture of I(0) and I(1). The ARDL Co-integration result revealed that long run relationship exists among the selected variables of interest in this study. Furthermore, ECM technique revealed that Financial Crises have negative and significant effect on Economic growth in Nigeria both in the long run and short run. Also, the effect of current value of Inflation was found to be negative and significant in the long run and that of Trade openness was positive and statistically significant in the short run. Also, the study found that there are long run and short run positive and significant impacts of Liberalization on Economic growth. Finally, the findings revealed that the current year values of Money Supply have negative and significant impact on current Economic growth; however, its past value has positive impact. The study concluded that a long-run relationship existed between financial crises and economic growth; specifically, such crises have negative and significant effects on economic growth of Nigeria. The government in general should tinker with the current policy prescription regarding the establishment of financial institutions especially those that cannot qualify for the status of domestically systematically important to avert recurring crises in the financial sector that have impacted the macro-economy negatively.

Fish Exports and Economic Growth: The Pakistan’s Experience

2019 ◽  
Vol 20 (2) ◽  
pp. 279-296 ◽  
Author(s):  
Syed Tehseen Jawaid ◽  
Mohammad Haris Siddiqui ◽  
Zeeshan Atiq ◽  
Usman Azhar
Keyword(s):  
Economic Growth ◽  
Time Series Data ◽  
Positive Impact ◽  
Impulse Response Function ◽  
Policy Implications ◽  
Sensitivity Analyses ◽  
Series Data ◽  
Distributed Lag ◽  
Long Run ◽  
Short Run

This study attempts to explore first time ever the relationship between fish exports and economic growth of Pakistan by employing annual time series data for the period 1974–2013. Autoregressive distributed lag and Johansen and Juselius cointegration results confirm the existence of a positive long-run relationship among the variables. Further, the error correction model reveals that no immediate or short-run relationship exists between fish exports and economic growth. Different sensitivity analyses indicate that initial results are robust. Rolling window analysis has been applied to identify the yearly behaviour of fish exports, and it remains negative from 1979 to 1982, 1984 to 1988, 1993 to 1999, 2004 and from 2010 to 2013, and it shows positive impact from 1989 to 1992, 2000 to 2003 and from 2005 to 2009. Furthermore, the variance decomposition method and impulse response function suggest the bidirectional causal relationship between fish exports and economic growth. The findings are beneficial for policymakers in the area of export planning. This study also provides some policy implications in the final section.

scholarly journals Consequences of Capital formation, Trade Liberalization on the Economic Growth: Pakistan’s Experience

2015 ◽  
Vol 2 (1) ◽  
pp. 1-4
Author(s):  
Nadia Bukhari ◽  
Anjum Iqbal
Keyword(s):  
Economic Growth ◽  
Time Series Data ◽  
Trade Openness ◽  
Capital Formation ◽  
Vital Role ◽  
Series Data ◽  
Distributed Lag ◽  
Long Run ◽  
Auto Regressive ◽  
Adf Test

This study considers the long run relationship between the liberalization of trade, capital formation and the economic growth of Pakistan by using the time series data from 1975-2013. The main aim of this study is to examine that how much liberalization of trade and capital formation affects the economic growth of Pakistan in long run. The approach that has been used for empirical analysis is Auto Regressive Distributed Lag (ARDL) model. Under the ADF test capital formation (CF) is stationary at its first level but the trade openness (TO) and GDP is stationary at its first difference. Moreover, the granger casualty test is evident that there become a casual relationship between the trade openness and GDP. The result of this study shows that both the trade openness and the capital formation determined the economic growth in long run and they both have statistically significant effect on the GDP. Furthermore it has has been depicted from the study that the trade has a vital role to influence the economic growth.

A Sectoral Analysis of the Role of Stock Market Development on Economic Growth: Empirical Evidence from Indian Economy

2017 ◽  
Vol 18 (4) ◽  
pp. 911-923 ◽  
Author(s):  
Madhu Sehrawat ◽  
A.K. Giri
Keyword(s):  
Economic Growth ◽  
Stock Market ◽  
Stock Prices ◽  
Stock Price ◽  
Time Series Data ◽  
Trade Openness ◽  
Series Data ◽  
Causality Test ◽  
Long Run ◽  
Short Run

The present study examines the relationship between Indian stock market and economic growth from a sectoral perspective using quarterly time-series data from 2003:Q4 to 2014:Q4. The results of the autoregressive distributed lag (ARDL) approach bounds test confirm the existence of a cointegrating relationship between sector-specific gross domestic product (GDP) and sector-specific stock indices. The empirical results reveal that sector-specific economic growth are significantly influenced by changes in the respective sector-specific stock price indices in the long run as well as in the short run. Apart from that, the control variables, such as trade openness and inflation, act as the instrument variables in explaining the variations in the sector-specific GDP of the economy. The results of Granger causality test demonstrate unidirectional long-run as well as short-run causality running from sector specific stock prices to respective sector GDP. The findings suggest that economic growth of the country is sensitive to respective sub-sector stock market investments. The findings highlight the reasons for cyclical and counter-cyclical business phase for the overall economy.

Modelling the Nexus Between Foreign Aid and Economic Growth: A Case of Afghanistan and Egypt

2021 ◽  
Vol 39 (2) ◽  
Author(s):  
Muhammed Ashiq Villanthenkodath ◽  
Ubaid Mushtaq
Keyword(s):  
Economic Growth ◽  
Foreign Aid ◽  
Time Series Data ◽  
Trade Openness ◽  
Political Stability ◽  
Series Data ◽  
Long Run ◽  
Short Run ◽  
Annual Time Series ◽  
And Control

This paper tries to explore the existence of a long-run relationship between foreign aid and economic growth by using the data from the two highest foreign aid recipient countries. Using the annual time series data from 1965 to 2017 this study uses several econometric models such as Johansen and Juselius cointegration, Granger causality and vector auto regression to establish the long and short-run relationships among foreign aid inflows and economic growth while also considering financial development and trade openness from both the countries. The empirical results suggest that no long-run relationship exists among foreign aid inflows and economic growth for both the countries. However, unidirectional causality running from foreign aid to economic growth is indicative in both countries. Therefore, the findings in this paper support the adequate need for foreign aid for effective economic growth amid an upright policy environment, related issues of conditionality and political stability. Our results are robust to independent, and control variables and estimation techniques are also on par with robustness.

scholarly journals Sectoral Investment and Employment Generation in Pakistan: An Econometric Analysis

2018 ◽  
Vol 4 (2) ◽  
pp. 261-270
Author(s):  
Furrukh Bashir ◽  
Hafeez ur Rehman ◽  
Rashid Ahmad ◽  
Ismat Nasim
Keyword(s):  
Time Series Data ◽  
Trade Openness ◽  
Percent Level ◽  
Series Data ◽  
Distributed Lag ◽  
Distributed Lag Model ◽  
Long Run ◽  
Augmented Dickey Fuller ◽  
Lag Model ◽  
Employment Generation

This study is projected at investigating the influence of Sectoral Investment on Employment Generation. For this purpose, time series data is collected from Pakistan over the period from 1972 to 2017. Augmented Dickey fuller test reveals that few variables considered in the study are stationary at level and few at first difference. So, econometric results are estimated using autoregressive and distributed lag model for long run elasticities. Long run co-integrating relationship is established at 2.5 percent level using ARDL bound testing approach. ARDL long run results concludes that Agricultural Investment, Industrial Investment, Services Sector Investment and Trade openness are increasing employment while inflation and tax revenue are seemed to be negatively related with employment of Pakistan in the long run.

scholarly journals Trade Openness And Inflation: Empirical Explanation Of The Nexus In Nigeria

2019 ◽  
Vol 1 (2) ◽  
pp. 35-45
Author(s):  
Musa Abdullahi Sakanko ◽  
David Joseph
Keyword(s):  
Inflation Rate ◽  
Time Series Data ◽  
Trade Openness ◽  
Consumer Price Index ◽  
Negative Relationship ◽  
Series Data ◽  
Secondary Sources ◽  
Long Run ◽  
Short Run ◽  
The Government

Purpose of the study: The study aims is to examine the effect of trade openness on inflation rate in Nigeria. Methodology: Time series data were collected from secondary sources.  EViews10 (statistical software for data analysis) ware employed to analyze the data collected. Findings: The results revealed a cointegrating and one-way Granger causality between inflation rate, and trade openness. In addition, both the short-run and the long-run results demonstrate a significant and negative relationship between inflation rate and trade openness in Nigeria. Application: The study is paramount to the government and policymakers in dealing and taking a decision regarding consumer price index and trade openness in Nigeria. We conclude that the government should work towards full diversification and diversion of the economy from oil export, control, and management of the degree of trade liberalization and the extent to which goods enter the country, and the control of money supplied. Novelty/Originality: The study accorded to debate on the inflation rate, and trade openness in Nigeria looking, at both short-run and long-run effects, before few accessible studies focused on impact, and trade openness was not measured as the value of net export divided by gross domestic product. Finally, the paper contributed to the scanty of the literature.

IMPACT OF MONETARY POLICY TARGETS ON CAPITAL MARKET DEVELOPMENT IN NIGERIA

2021 ◽  
Vol 8 (1) ◽  
pp. 85-95
Author(s):  
Abdulkarim Musa ◽  
◽  
Uwaleke Uche ◽  
Nwala Nneka ◽  
◽  
...  
Keyword(s):  
Monetary Policy ◽  
Money Supply ◽  
Capital Market ◽  
Time Series Data ◽  
Market Development ◽  
Series Data ◽  
Distributed Lag ◽  
Long Run ◽  
Short Run ◽  
The Impact

This study empirically examines the impact of monetary policy targetson capital market development in Nigeria from 1986-2018. Time series data and econometric tools were used to test for the stationarity and causality effect. The Auto-Regressive Distributed Lag Model (ARDL) and Error Correction Model (ECM) techniques were used to examine the short-run and long-run impact and relationship between Monetary Policy and Capital Market Development in Nigeria. The study revealed that both in the long run and short run Exchange Rate (EXCHR), Inflation Rate (INFR), and Interest Rate in Nigeria (INTR)were negatively related to Capital Market Development (CAMKTD) in Nigeria and they were statistically insignificant in explaining changes in Capital Market Development (CAMKTD) in Nigeria. On the other hand, inthe long run, Money Supply was positively related to Capital Market Development (CAMKTD) in Nigeria and was statistically significant at a 5% level significant while Money Supply (M2) was positively related to Capital Market Development (CAMKTD) in Nigeria both in the long run and short-run and was statistically significant at 5% level of significance. Therefore, the study recommends that government should improve the efficiency and effectiveness of the money supply in Nigeria since it was statistically significant in determining the improvement of Capital Market Development (CAMKTD) in Nigeria.

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