scholarly journals Study of economic development of Pakistan through stock market: Causal relationship of stock prices and macroeconomic indicators

2013 ◽  
Vol 8 (2) ◽  
pp. 124-141
Author(s):  
Rizwan Raheem Ahmed ◽  
Yaseen Ahmed Meenai ◽  
Fazal Hussain
Keyword(s):  
Economic Development ◽  
Stock Market ◽  
Causal Relationship ◽  
Stock Prices ◽  
Macroeconomic Indicators ◽  
Relationship Of

scholarly journals Innovative Approach to Measuring the Impact of FDI on Some Macroeconomic Indicators in B&H

ECONOMICS ◽  
2018 ◽  
Vol 6 (1) ◽  
pp. 7-15
Author(s):  
Slobodan Subotić ◽  
Živko Erceg ◽  
Vladimir Marković ◽  
Goran Mitrović
Keyword(s):  
Economic Development ◽  
Foreign Direct Investment ◽  
National Economy ◽  
Direct Investment ◽  
Economic Life ◽  
Capital Export ◽  
Economic Surplus ◽  
Macroeconomic Indicators ◽  
Relationship Of ◽  
The Impact

SUMMARY The necessity of economic life and economic development of every economy is the free movement of capital. The international movement of capital has its balance of payment when capital export represents economic surplus in relation to consumption of the national economy and the import of capital represents an increase of consumption in regard to the output of a national economy. Analysis of the influence of foreign direct investment (FDI) on economic growth of the host country, among other things, is emphasized in the function of the achieved phase of its economic development. Taking all this into consideration, the aim of this paper refers to an attempt to indicate the significance and the role of FDI as well as the importance of attracting foreign direct investment in B&H and the determination of the effects of FDI on the economy of B&H. In this regard, we will try to determine the level of FDI’s impact on some macroeconomic indicators in B&H (GDP, import, export, unemployment) by using contemporary SPSS statistical analysis program (model) and applying the methods (calculating coefficients) of correlation and regression analysis. In other words, we will determine the analytical expression used to describe a statistical relationship of these macroeconomic categories.

scholarly journals An Empirical Analysis of Macroeconomic Variability on the Ghanaian Stock Market: A Vector Autoregression Approach

2016 ◽  
Vol 3 (2) ◽  
pp. 49
Author(s):  
Beverly Acquah
Keyword(s):  
Stock Market ◽  
Interest Rates ◽  
Stock Prices ◽  
Economic Activity ◽  
Price Index ◽  
Vector Autoregression ◽  
Negative Relationship ◽  
Commodity Prices ◽  
Commodity Price ◽  
Macroeconomic Indicators

This study investigates the dynamic interrelationships among stock prices and selected macroeconomic indicators namely; economic activity, global commodity price index, inflation and interest rates in Ghana. By employing a Vector Autoregression (VAR) Model, the empirical results reveal that stock prices depreciate with an increase in global commodity prices and interest rates indicating a negative relationship. On the other hand, stock prices appreciate with an increase in inflation and economic activity indicating a positive relationship. Examining stock market variability on the selected macroeconomic variables also showed that inflation and interest rates respond negatively to changes in asset prices while the stock market itself is not found to be a leading indicator for economic activity. The evidence suggests that the listed equities on the GSE are a hedge against inflation in Ghana. Increasing economic activity over time is advantageous for the Ghanaian stock market.

scholarly journals The Relationship between Macro-Economic Variables and Stock Exchange Prices: A Case Study in Dhaka Stock Exchange (DSE) in Bangladesh

2019 ◽  
Vol 3 (3) ◽  
pp. 122-130 ◽  
Author(s):  
Md. M. Rahman
Keyword(s):  
Exchange Rate ◽  
Causal Relationship ◽  
Money Supply ◽  
Industrial Production ◽  
Stock Prices ◽  
Trade Balance ◽  
Stock Exchange ◽  
Stock Exchanges ◽  
Macroeconomic Indicators ◽  
The Relationship

Macroeconomic indicators, such as money supply, inflation, exchange rate, trade balance, indicators of industrial production, are the basis for assessing the processes of growth and development of the country. Peculiarities of functioning of the exchange market also play an important role in the analysis of the country’s development. Disclosure of the main purpose of the study involves the study of the relationship between macroeconomic indicators and stock prices on the Dhaka stock exchange (DSE) in Bangladesh. Methodological support of the work includes statistical methods (Granger causality test and Dickie fuller test), which allow to determine the causal relationship between macroeconomic indicators and prices on the stock exchange of Bangladesh. Empirical estimates of the study showed the absence of a causal relationship between macroeconomic indicators (money supply, industrial production index, exchange rate, inflation and trade balance) and stock prices in the form of a General index of all shares on the DAX stock exchange. The obtained results indicate that the macroeconomic evaluation cannot be used to predict prices on the stock exchanges in Bangladesh. The study postulates that the results of exchange activity also do not reflect the peculiarities of macroeconomic movement in the country. The author substantiates recommendations for regulatory authorities in terms of the formation of a set of measures to ensure the claim correlation of macroeconomic indicators of the country’s development with prices on the stock market. It is stated that the results of the study will allow the government to take active measures to: overcome in the future the pressure of international trade, adjust the appropriate monitoring and fiscal policy, reduce any possible negative impact on the country’s economy in the context of its further development. Keywords: macroeconomic variables, money supply, exchange rate, inflation, prices on stock exchanges, Dhaka stock exchange, Bangladesh.

scholarly journals The relationship of economic development and environmental problems in modern China

2019 ◽  
Vol 2 (51) ◽  
pp. 40-50
Author(s):  
A. A. Kravchenko ◽  
A. V. Zayats
Keyword(s):  
Economic Growth ◽  
Economic Development ◽  
Causal Relationship ◽  
Environmental Problems ◽  
Environmental Indicators ◽  
Industrial Wastes ◽  
Modern Development ◽  
Significant Difference ◽  
Relationship Of ◽  
The Relationship

Over the past forty years, China has shown rapid and significant economic growth, going from agrarian to industrial economy: its GDP has been increasing by an average of 9.8% per year, which represents dynamic economic growth thus making China the second largest economy in the world after the USA in terms of nominal GDP. Due to the specific history of its economic development, China faces the problem of serious destruction and pollution of life-supporting natural resources. Environmental degradation is already in conflict with the challenges of further economic growth necessary to meet the needs of the growing population and improve its standard of living. Based on this, the study of the influence of economic development on China’s environmental problems in the context of modern development seems to be particularly relevant in theoretical and practical terms. To test the hypothesis of the relationship of economic development and environmental problems in China, a correlation-regression analysis has been conducted: we have identified 22 pairs of indicators with moderate and strong relationships. Using the Engle-Granger criterion method, we checked the presence of true causal relationship between the indicators and we found that the studied pairs of indicators do not cointegrate, i.e. there is no true causal relationship between the indicators of economic development and environmental indicators. This result led us to the conclusion that there is a significant difference in the rates of economic development and environmental protection. The result of evaluating the effectiveness of investments in solving the problems of environmental pollution in the PRC has shown that insufficient attention is paid to investments in the control and control of water pollution and pollution by industrial wastes. Government investments in these areas for pollution control are ineffective.

scholarly journals MACROECONOMIC INDICATORS AND THEIR IMPACT ON STOCK MARKET PERFORMANCE IN THE SHORT AND LONG RUN: THE CASE OF THE BALTIC STATES / MAKROEKONOMINIAI RODIKLIAI IR JŲ ĮTAKA AKCIJŲ RINKOS INDEKSUI TRUMPUOJU IR ILGUOJU LAIKOTARPIU: BALTIJOS ŠALIŲ ATVEJIS

2010 ◽  
Vol 16 (2) ◽  
pp. 291-304 ◽  
Author(s):  
Donatas Pilinkus
Keyword(s):  
Stock Market ◽  
Stock Prices ◽  
Baltic States ◽  
Stock Market Index ◽  
Macroeconomic Variables ◽  
Market Index ◽  
Stock Market Performance ◽  
Macroeconomic Indicators ◽  
The Baltic ◽  
The Impact

The relation between macroeconomic variables and the movement of stock prices has well been documented in the literature over the last several decades. It is often argued that stock prices are determined by some fundamental macroeconomic variables. Therefore, macroeconomic variables can influence investment decisions and motivates many researchers to investigate the relation between stock market prices and macroeconomic variables. The current paper attempts to introduce the concepts of stock market and macroeconomic indicators, then to present a model of the impact of macroeconomic indicators on stock market index, and to define what macroeconomic indicators are related with stock market index in the short and long runs. The study investigates ten macroeconomic indicators and the main Baltic stock market indices. The data are monthly and extend from the January of 2000 to the December of 2008. Empirical research has been conducted with the Baltic States: Lithuania, Latvia, and Estonia. With the reference to the results of performed analysis the interpretations of the relationships between macroeconomic indicators and stock market index from the viewpoint of investors have been formed. Santrauka Straipsnyje nagrinejama, kaip kompleksiškai įvertinti makroekonominių rodiklių įtaką akcijų rinkos indeksui. Atlikti teoriniai tyrimai leido sukurti modelį, kuris kompleksiškai įvertintų makroekonominių rodiklių ir akcijų rinkos indekso sąryšio priežastingumą bei priklausomybę trumpuoju ir ilguoju laikotarpiu. Nustatyta, kad objektyvus šio saryšio nustatymas turi remtis ne tik tinkamu makroekonominių rodiklių parinkimu, bet ir pagrįsta tyrimo metodologija, kompleksiškai įvertinančia makroekonominiu rodiklių ir akcijų rinkos indekso saryšio pokyčius trumpuoju bei ilguoju laikotarpiais. Tiriant priklausomybę tarp akcijų kainų ir makroekonominių veiksnių buvo naudojami statistiniai 2000–2008 m. Lietuvos, Latvijos ir Estijos makroekonominių rodiklių bei Vilniaus, Rygos ir Talino vertybinių popierių biržos indekso duomenys. Siekiant įvertinti Baltijos šaliu makroekonominių rodiklių įtaka atskirų šalių akcijų kainoms, pasirinkti tokie makroekonominiai rodikliai, kurie perteikia šalių ekonomikos būklę ir jos kitima, skaičiuojami visose šalyse, lengvai prieinami statistinių duomenų šaltiniuose ir yra gana populiarūs. Remiantis atlikto tyrimo rezultatais, suformuotos makroekonominių rodiklių ir akcijų rinkos indekso saryšių interpretacijos investuotojo požiūriu.

scholarly journals Relationship Among Political Instability, Stock Market Returns and Stock Market Volatility

2017 ◽  
Vol 12 (2) ◽  
pp. 70-99 ◽  
Author(s):  
Hira Irshad
Keyword(s):  
Stock Market ◽  
Stock Prices ◽  
Political System ◽  
Political Instability ◽  
Negative Relationship ◽  
Stock Market Volatility ◽  
Market Returns ◽  
Stock Market Returns ◽  
Relationship Of ◽  
The Relationship

Abstract This study investigated the relationship of political instability with the stock prices. Results of the study indicated the negative relationship of stock prices with political instability. Moreover, results of suggested that instable political system ultimately leads decline in stock prices. Inflation has shown negative relationship with stock prices whereas, industrial production and Exports have positive relationship with stock prices.

scholarly journals Granger Causality between Stock Market and Macroeconomic Indicators: Evidence from Germany

2016 ◽  
Vol 64 (6) ◽  
pp. 2101-2108 ◽  
Author(s):  
Tomáš Plíhal
Keyword(s):  
Interest Rate ◽  
Stock Market ◽  
Granger Causality ◽  
Money Supply ◽  
Industrial Production ◽  
Stock Prices ◽  
Efficient Market Hypothesis ◽  
Bivariate Analysis ◽  
Informational Efficiency ◽  
Macroeconomic Indicators

The aim of this paper is to investigate informational efficiency of the stock market in Germany. Granger causality between the stock market and the selected macroeconomic variables is investigated by bivariate analysis using Toda-Yamamoto (1995) approach. This study focuses on monthly data from January 1999 to September 2015, and the stock market is represented by blue chip stock market index DAX. Investigated macroeconomic indicators include industrial production, inflation, money supply, interest rate, trade balance and exchange rate. Stock market Granger-causes industrial production and interest rate, and is therefore leading indicator of these variables. Between money supply and stock prices is Granger causality in both directions. Other variables seem to be independent on development of the stock market. We do not find any violation of Efficient market hypothesis which indicates that the stock market in Germany is informational efficient.

Macroeconomic Factors and Pakistani Equity Market”

2004 ◽  
Vol 43 (4II) ◽  
pp. 619-637 ◽  
Author(s):  
Muhammad Nishat ◽  
Rozina Shaheen
Keyword(s):  
Stock Market ◽  
Industrial Production ◽  
Stock Prices ◽  
Stock Price ◽  
Consumer Price Index ◽  
Reverse Causality ◽  
Macroeconomic Factors ◽  
Macroeconomic Variables ◽  
Equilibrium Relationships

This paper analyzes long-term equilibrium relationships between a group of macroeconomic variables and the Karachi Stock Exchange Index. The macroeconomic variables are represented by the industrial production index, the consumer price index, M1, and the value of an investment earning the money market rate. We employ a vector error correction model to explore such relationships during 1973:1 to 2004:4. We found that these five variables are cointegrated and two long-term equilibrium relationships exist among these variables. Our results indicated a "causal" relationship between the stock market and the economy. Analysis of our results indicates that industrial production is the largest positive determinant of Pakistani stock prices, while inflation is the largest negative determinant of stock prices in Pakistan. We found that while macroeconomic variables Granger-caused stock price movements, the reverse causality was observed in case of industrial production and stock prices. Furthermore, we found that statistically significant lag lengths between fluctuations in the stock market and changes in the real economy are relatively short.

Sign in / Sign up

Export Citation Format

Share Document