scholarly journals The Bank Sector Performance and Macroeconomics Environment: Empirical Evidence in Togo

2017 ◽  
Vol 9 (2) ◽  
pp. 180 ◽  
Author(s):  
Adama Combey ◽  
Apelete Togbenou
Keyword(s):  
Exchange Rate ◽  
Gross Domestic Product ◽  
Real Effective Exchange Rate ◽  
Domestic Product ◽  
Return On Assets ◽  
Gross Domestic Product Growth ◽  
Return On Equity ◽  
Real Gross Domestic Product ◽  
Effective Exchange ◽  
Effective Exchange Rate

This article investigates short-run and long-run relationship between three main macroeconomic indicators (gross domestic product growth, real effective exchange rate, and inflation) and banking sector profitability (measured by return on assets and return on equity) in Togo, from 2006 to 2015, by using Pool Mean Group estimator. Results show that, in the short-run, banks’ return on assets and return on equity are not related to macroeconomic variables. But banks’ return on assets is determined positively by bank capital to assets ratio and bank size while banks’ return on equity is affected negatively by bank capital to assets ratio. However, in the long-run, real gross domestic product growth and real effective exchange rate affect negatively and statistically significant banks’ return on assets, while inflation rate has no effect. Concerning bank’s return on equity, in the long-run, results suggest that real gross domestic product growth, real effective exchange rate, and inflation affect negatively bank’s return on equity. These results imply that to stabilize bank profitability and make Togolese banking sector more resilient, policymakers and banking sector managers must, among others, try to improve real gross domestic product growth, real effective exchange rate, and inflation volatility anticipation.

Impact of exchange rate movement and macro-economic factors on exports of software and services from India

2016 ◽  
Vol 23 (5) ◽  
pp. 1193-1206 ◽  
Author(s):  
Parijat Upadhyay ◽  
Saikat Ghosh Roy
Keyword(s):  
Exchange Rate ◽  
Gross Domestic Product ◽  
Real Effective Exchange Rate ◽  
Domestic Product ◽  
Content Type ◽  
Indian Rupee ◽  
Effective Exchange ◽  
Effective Exchange Rate ◽  
The Impact ◽  
Software Services

Purpose – The information technology (IT) sector in India is the leading exporter from the service sector domain and also is a significant contributor to the overall export kitty of India. The IT sector’s contribution in total Indian exports (merchandise plus services) increased from less than 4 percent in FY1998-1999 to about 25 percent in FY2011-2012 as per IT industry nodal body National Association of Software and Services Companies and the central bank of the country, the Reserve Bank of India (RBI). As this industry earns most of its revenue in foreign currencies it is exposed to the foreign exchange risks. The purpose of this paper is to validate the macro-economic theory that depreciation in domestic currency boosts export as it makes domestic good and services cheaper and appreciation in domestic currency deters export as it makes domestic good and services costlier. The authors are validating this theory for Indian rupee and keeping software services export in the focus. Design/methodology/approach – In this study the authors have done the multiple regression analysis on the obtained time-series data. The research was totally based on the secondary data from Quarter1 (April-June) of FY 2000-2001 to Quarter4 (January-March) of FY 2011-2012. It comprises of data for 48 consecutive quarters. The authors have taken the growth rate, so the final data set consist of data of 47 quarters. The main source of data are published data by RBI. Data have been collected for export of software services, merchandise export, real effective exchange rate, US-dollar-Indian rupee exchange rate, gross domestic product of India and selected countries. Findings – Data analysis leads the authors to the following findings: real effective exchange rate has no significant impact on software services export; US-dollar-Indian rupee exchange rate has no significant impact on software services export; external gross domestic product growth has no significant impact on software services export; and gross domestic product growth of India has no significant impact on software services export. The results obtained from multiple regression analysis are also supported by the results obtained from Granger Causality test. It does not identify any single factor as a major cause of software export. Results shows that the external GDP is having the statistically significant impact on the software export but the low value of R2 denotes that the impact is very low. Originality/value – There are no published studies available which has attempted similar kind of an approach to study using aggregated export data and other macro-economic variables like real effective exchange rate (REER) and GDP growth rate. All previous literatures used REER to measure the impact of the exchange rate on export.

scholarly journals ANALISIS DETERMINAN EKSPOR PROVINSI SUMATERA UTARA: PENDEKATAN GRAVITY MODEL

2020 ◽  
Vol 2 (2) ◽  
Author(s):  
Efori Telaumbanua
Keyword(s):  
Foreign Direct Investment ◽  
Exchange Rate ◽  
Gross Domestic Product ◽  
Direct Investment ◽  
Trading Partner ◽  
Real Effective Exchange Rate ◽  
Geographical Distance ◽  
Export Rate ◽  
Effective Exchange ◽  
Effective Exchange Rate

Export Growth has been being one of important component in enhancing of economic growth of North Sumatera Province. During 2005-2010, the average growth of export rate of North Sumatera Province is 16,5 percent per year with 5,23 percent per year the average of it’s contribution to growth. The aim of this research is to detect the factors which affect the enhancement of export rate of North Sumatera Province during 2005-2010. With augmented gravity model approach, this research analyzes the effect of gross domestic product percapita rate and the population of each trading partner countries, geographical distance between North Sumatera Province and every trading partner countries, foreign direct investment and real effective exchange rate of North Sumatera Province, to the export rate of North Sumatera Province to every trading countries, such as United States of America, Netherland, China, India, Italy, Japan, Malaysia, Egypt, Singapore, and Ukraine. By using random effect model in pooled data processing, the result of this research describes that the gross domestic product percapita and the population of each trading partner countries affect positively and significantly to the export rate of North Sumatera Province. As well as foreign direct investment rate and real effective exchange rate of North Sumatera Province show the positive and significant effect. Whereas, geographical distance as the trade barrier, correlate negatively and significantly to the export rate of North Sumatera Province.

scholarly journals Currency Depreciation, Trade Balance and Intra-Industry Trade Interactions in Turkey’s OECD Trade

2016 ◽  
Vol 8 (4) ◽  
pp. 8 ◽  
Author(s):  
Mehmet Demiral
Keyword(s):  
Exchange Rate ◽  
Trade Balance ◽  
Real Effective Exchange Rate ◽  
Series Data ◽  
Adjustment Process ◽  
Industry Trade ◽  
Long Run ◽  
Effective Exchange ◽  
Short Run ◽  
Effective Exchange Rate

<p>This study re-examines the determinants of Turkey’s trade balance in its manufactures trade with 33 OECD-member countries for the short-run and the long-run. Unlike other studies, in the relationships we also control the moderating effects of the availability of import substitutes proxied by intra-industry trade. We analyze quarterly aggregated time-series data of the period spanning from 1998.QI to 2015.QIII, following the autoregressive distributed lag (ARDL) bounds testing approach to the cointegration and the error correction modeling. Estimation results reveal that real effective exchange rate, together with domestic and foreign incomes are still among the core determinants of Turkey’s trade balance in the manufacturing sectors. There is no significant impact of domestic final oil prices that also include all the taxes on gasoline. The trade balance depends on domestic income negatively and the aggregated income of the OECD countries positively. The finding that real depreciation of Turkish lira against to those of Turkey’s OECD trade partners improves trade balance in both the short-run and the long-run, indicates no evidence of J-curve adjustment process. Unsurprisingly, the intra-industry trade seems to be an important factor that moderates the elasticities of trade balance to its determinants, especially to real effective exchange rate and domestic income. Overall results underline the importance of import-substitution capability besides the export-oriented production to ease the longstanding large trade deficits for Turkey.</p><strong></strong>

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