scholarly journals Linkages between Trade Openness, Productivity and Industrialization in Nigeria: A Co-integration Test

2017 ◽  
Vol 8 (2) ◽  
pp. 78
Author(s):  
Ilemona Adofu ◽  
Innocent Okwanya
Keyword(s):  
Total Factor Productivity ◽  
Impulse Response ◽  
Response Function ◽  
Trade Openness ◽  
Impulse Response Function ◽  
Policy Implications ◽  
Industrial Output ◽  
Factor Productivity ◽  
Long Run ◽  
Integration Test

This study examines the effect of trade openness and total factor productivity on industrial output in Nigeria. The data used for this analysis covers the period 1981-2015. The paper employs the VAR model in estimating the effect of trade openness on industrial output. The impulse response function and the variance decomposition are used to examine the response of industrial output to shocks in trade openness and total factor productivity. The results show that trade openness has a positive increasing effect on industrial output in Nigeria while the effect of total factor productivity on industrial output is found to be insignificant. The impulse response function shows over the long run period tfP negative effect on industrial output in Nigeria. The findings of this study certainly have important policy implications: it suggests that policies geared towards increasing trade openness should be encouraged as this tends to improve industrial output. This study contributes to economics literature by looking at the degree to which trade openness and total factor productivity influence industrial output in Nigeria.

Financial Deepening and Economic Growth in Jamaica

2017 ◽  
Vol 18 (1) ◽  
pp. 1-18 ◽  
Author(s):  
Alton Best ◽  
Brian M. Francis ◽  
C. Justin Robinson
Keyword(s):  
Economic Growth ◽  
Impulse Response ◽  
Response Function ◽  
Impulse Response Function ◽  
Variance Decomposition ◽  
Annual Data ◽  
Financial Deepening ◽  
The Real ◽  
Long Run ◽  
Out Of Sample

The paper empirically examines the question of whether bank liquid reserves to bank assets ratio and domestic credit to private sector as a percentage of GDP strengthens financial deepening on the real sector and hence catalyzes economic growth in Jamaica. A Granger causality approach is employed within a multivariate framework. Cointegration is used to examine the short- and long-run relationships within the model. Innovative accounting techniques (impulse response function and variance decomposition) are also utilized to determine the out-of-sample relation between financial deepening and economic growth. The empirical analysis is conducted with annual data from 1980 to 2014 with three proxies for financial deepening. The empirical evidence suggests a ‘supplying-leading’ relationship in both the short and long run. These results are confirmed by the innovation accounting techniques (impulse response function and the variance decomposition). Our findings imply that Jamaica should first concentrate on developing its financial sectors which has the potential to spur higher levels of economic growth in the real sectors of the economy.

Inter-linkages between India and World Stock Markets and European Debt Crisis

2015 ◽  
Vol 4 (3and4) ◽  
Author(s):  
Mohit Kumar
Keyword(s):  
Impulse Response ◽  
Debt Crisis ◽  
Policy Implications ◽  
Response Analysis ◽  
Causality Test ◽  
Indian Economy ◽  
Impulse Response Analysis ◽  
Long Run ◽  
Integration Test ◽  
European Debt Crisis

This paper examines the inter-linkages and long run co-integration of Indian economy with other economies of the world (US, Europe, Other Emerging markets, and World economy) using standard indices of MSCI over the period April, 2001 to March, 2013. We also investigate Indian economys response to recent global turbulence European Debt crisis (EDC). We use Granger causality test, Johansen co-integration test and Impulse response analysis of Vector auto-regression framework to test various hypotheses. There is no contagious effect of EDC on Indian economy. During post-EDC, the Indian economy is granger caused by US and world economies. Further during the pre as well as post- EDC period, no cointegrating relationship has been found. This low level of co integration, despite presence of short run causal relationship, shows that global shocks might destabilize Indian economy in long run. Especially, Impulse response analysis revealed that Indian economy seems to be affected from the shocks created in the European markets and such shock persists in Indian economy for more than 10 months. These results have important policy implications. The policy makers need to understand that although there is no contagious effect of EDC on Indian economy but interdependency can destabilize Indian economy for much longer period.

scholarly journals Macroeconomic determinants of total factor productivity and its trend in Ethiopia

2019 ◽  
Vol 8 (6) ◽  
pp. 219-228
Author(s):  
Adisu Abebaw Degu ◽  
Dagim Tadesse Bekele
Keyword(s):  
Foreign Direct Investment ◽  
Total Factor Productivity ◽  
Direct Investment ◽  
Time Series Data ◽  
Trade Openness ◽  
Government Expenditure ◽  
Series Data ◽  
Factor Productivity ◽  
Macroeconomic Factors ◽  
Long Run

Total factor productivity (TFP) as a source of economic growth, has been recognized in economic theory for a long period of time. In this research we tried to examine the effect of some macroeconomic factors, which include trade openness, inflation, government expenditure, credit extended and foreign direct investment, and natural disaster drought on total factor productivity and its trend in Ethiopia by using Time series data spanning from 1991 to 2018.  The TFP was computed by using the growth accounting method from Cobb–Douglas production function.  ARDL was used for estimation of the short and long run econometric model.  Accordingly, the trend analysis shows the growth in TFP has been fluctuating over the study period. The result from ARDL indicated that; in long run foreign direct investment, government expenditure and drought negatively and significantly affect TFP. Credit extended is found to affect TFP positively and significantly, while inflation and trade openness are insignificant. Therefore, policies such as; subsidizing domestic firms, effective government spending and making the agriculture sector drought resistant need to be stimulated.

scholarly journals Trade Openness and Green Total Factor Productivity in China: The Role of ICT-Based Digital Trade

2021 ◽  
Vol 9 ◽  
Author(s):  
Huan Zhang
Keyword(s):  
Total Factor Productivity ◽  
Scale Effect ◽  
Trade Openness ◽  
Estimation Method ◽  
Policy Implications ◽  
Structure Effect ◽  
Factor Productivity ◽  
Estimation Model ◽  
Promoting Effect ◽  
The Impact

The vigorous development of modern information and communication technology (ICT) has driven the digital trade featured by the ICT technique and industry as the carrier. This study empirically tests the impact of ICT-based digital trade openness on green total factor productivity (GTFP) by selecting ICT as the representative digital trade data of 30 provinces in China over the timespan 2002–2018. We employ the slack-based model and global Malmquist–Luenberger (SBM-GML) estimation method to calculate the provincial GTFP and explore the heterogeneous impact of digital trade openness on GTFP through the scale effect, technology effect, and structure effect. In terms of empirical results, the panel fixed model and panel quantile estimation model both suggest the same findings. With the continuous expansion of the scale of digital trade, its scale effect has a significant inhibitory effect on GTFP, whereas the structure effect combined with human capital and the technology effect correlated with technological research and development (R&D) have a significant promoting effect on GTFP. The panel quantile regression model reveals that the interaction intensity increases gradually from a low quantile to high quantile. Further robustness tests also verify the consistency and stability of the results. Finally, the study puts forward corresponding practical suggestions for the construction of a high-quality open pattern of digital trade and the coordinated development of GTFP. The specific policy implications include the following: (1) Emphasize on the penetration and connection effect of the new generation of ICT, and strengthen the construction of enterprise informatization. (2) Expand digital trade openness and broaden the field of industrial cooperation. (3) Optimize the industrial structure of digital trade, and accelerate the development of core industries of digital trade. (4) Gradually promote the transformation of digital trade from relying on quantity and scale to product quality.

scholarly journals Oil Consumption in Transport and Economic Growth Nexus: Empirical Evidence from Cameroon

2018 ◽  
Vol 14 (10) ◽  
pp. 409
Author(s):  
Youssouf Nvuh Njoya ◽  
Mouhamed Mbouandi Njikam
Keyword(s):  
Economic Growth ◽  
Error Correction ◽  
Impulse Response ◽  
Response Function ◽  
Impulse Response Function ◽  
Error Correction Model ◽  
Annual Data ◽  
Oil Consumption ◽  
Correction Model ◽  
Long Run

This paper focuses on casting light on the causal relationship between oil consumption in transport and economic growth in Cameroon. This paper uses an annual data covering the period 1975-2014, which is a five-step modern time series techniques. They include the Unit root tests, co-integration analysis, and Granger-causality based on error correction model. As a robustness test, we made use of the impulse response function and variance decomposition to portray the correlations between variables. The main result highlighted in the present paper point out the presence of a long-run equilibrium relationship between oil consumption in transport and economic growth. The error correction model shows that an estimated 1% increase in economic growth causes a rise in oil consumption in transport by 1.29 % in the long run. Another results show that there exists bidirectional causality in the long-run relationship and there was no causality in the short-run relationship at the 5% level of significance. The decomposition of the variance and impulse response function indicates a dissymmetric of the variance of the prediction error and the dynamic properties of the system. This study provides a basis for the discussion of energy consumption in transport policies in order to maintain a sustainable economic growth in Cameroon.

Research on the Association Mechanism between China's Textile Industry and Macroeconomic — Based on VAR Model

2011 ◽  
Vol 332-334 ◽  
pp. 2050-2053
Author(s):  
Fan Li ◽  
Zhi Min Song ◽  
Xing Han
Keyword(s):  
Impulse Response ◽  
Response Function ◽  
Textile Industry ◽  
Time Lag ◽  
Impulse Response Function ◽  
Variance Decomposition ◽  
Var Model ◽  
Dynamic Correlations ◽  
Lag Effect ◽  
Integration Test

This paper studies the relationship between the development of textile industry and the macroeconomic growth. By establishing the VAR model and co-integration test, the paper systematically describes the dependency between them. It also applies the method of impulse response function and variance decomposition to analyze their dynamic correlations. The result shows that there exists a long-term relationship between the textile industry and macroeconomic in China. But the relevance between them has something alike as well as something different through the analysis of impulse response function and variance decomposition. The good functioning of macroeconomic creats favourable conditions for the development of the textile industry. However, the influence on the textile industry of macroeconomic has a time-lag effect.

An Analysis of the Importance of Terms of Trade in South Africa Using Impulse Response Function

2020 ◽  
pp. 097215092091655
Author(s):  
Temitope L. A. Leshoro
Keyword(s):  
South Africa ◽  
Impulse Response ◽  
Response Function ◽  
Impulse Response Function ◽  
Output Growth ◽  
Terms Of Trade ◽  
Export Market ◽  
Stable States ◽  
Long Run ◽  
Negative Shock

The understanding of the terms of trade is essential as its worsening can cause severe disruptions in any economy. South Africa, as a developing nation and a net importer, coupled with its low contribution to the global export market, is not spared the effects of the volatility of export prices. It is therefore important to observe the effects of a negative shock in the commodity terms of trade on selected key macroeconomic variables. Using quarterly data from the period 1988: Q2 to 2019: Q3, the study adopted the Monte Carlo impulse response function and variance decomposition analyses to examine the path of a given variable that resulted from a negative shock in the terms of trade. The results showed that all the variables responded, as expected, to the shock in the commodity terms of trade, both in the short and long run, and that they all returned to stable states. The study further showed the importance of output growth, exchange rate and investment in explaining the commodity terms of trade decomposition. The study concludes by providing some policy recommendations.

scholarly journals Investigating the Relationship between Composite, Islamic, and Conventional Indexes in Indonesia

2021 ◽  
Vol 1 (2) ◽  
pp. 82-101
Author(s):  
Ikram Nur Muharam ◽  
Muhamad Abduh
Keyword(s):  
Financial Markets ◽  
Impulse Response ◽  
Response Function ◽  
Financial Market ◽  
Composite Index ◽  
Impulse Response Function ◽  
Long Run ◽  
Short Run ◽  
The Relationship

Apart from the question of whether all indexes in financial markets are driven by similar factors, this study examines the long and short-run relationships between the composite index (JKSE), Islamic index (JII), and pure non-Islamic index (NST7) in the Indonesia financial market. The results show that there is at least one cointegrated equation among the JKSE, JII, and NST7. Furthermore, the output from VECM shows that only the JII has a significant long-run relationship with the JKSE. In the case of short-run relationships, the JII and NST7 do not significantly affect the JKSE, while the JII was significantly influenced by the JKSE. Otherwise, the Impulse Response Function shows that a shock on the JII will negatively affect both the JKSE and the NST7, while a shock on the NST7 is not very influential on the JKSE or the JII.

Fractional Vector-Order h-Realisation of the Impulse Response Function

2020 ◽  
Vol 14 (2) ◽  
pp. 108-113
Author(s):  
Ewa Pawłuszewicz
Keyword(s):  
Control Systems ◽  
Impulse Response ◽  
Response Function ◽  
Impulse Response Function ◽  
Linear Control ◽  
Linear Control Systems

AbstractThe problem of realisation of linear control systems with the h–difference of Caputo-, Riemann–Liouville- and Grünwald–Letnikov-type fractional vector-order operators is studied. The problem of existing minimal realisation is discussed.

Sign in / Sign up

Export Citation Format

Share Document