Price Transmission and Factors Influencing the Price of Onions in Tanzania

This article analyzes the transmission of prices between marketing agents and the factors affecting onion prices at the consumer level. The Error Correction Model-Engle Granger (ECM-EG) was used to test the price transmission by including the impact of the rise and fall of producer, wholesale and retail prices in past periods. The Error Correction Model (ECM) was applied to the factors affecting onion prices. The test results showed that price transmission was asymmetrical in the short and long-run. With regard to factors, the results show that consumer price in the short-run was influenced by wholesale prices, producer prices and the price of fuel while in the long-run it was influenced by wholesale prices, producer price, price of fuel and consumer prices in the previous period (t-1). These results suggest the existence of a short-term adjustment cost and a long-term market power which distorts price transmission.

The dynamic effect of exchange-rate volatility on Turkish exports: Parsimonious error-correction model approach

Panoeconomicus ◽

10.2298/pan1504429d ◽

2015 ◽

Vol 62 (4) ◽

pp. 429-451 ◽

Cited By ~ 4

Author(s):

Erdal Demirhan ◽

Banu Demirhan

Keyword(s):

Exchange Rate ◽

Error Correction ◽

Exchange Rate Volatility ◽

Dynamic Effect ◽

Error Correction Model ◽

Impulse Response Functions ◽

Correction Model ◽

Long Run ◽

Export Volume ◽

This paper aims to investigate the effect of exchange-rate stability on real export volume in Turkey, using monthly data for the period February 2001 to January 2010. The Johansen multivariate cointegration method and the parsimonious error-correction model are applied to determine long-run and short-run relationships between real export volume and its determinants. In this study, the conditional variance of the GARCH (1, 1) model is taken as a proxy for exchange-rate stability, and generalized impulse-response functions and variance-decomposition analyses are applied to analyze the dynamic effects of variables on real export volume. The empirical findings suggest that exchangerate stability has a significant positive effect on real export volume, both in the short and the long run.

Integration Rice Price And Farmers Welfare With Error Correction Model Analysis

Archives of Business Research ◽

10.14738/abr.79.7118 ◽

2019 ◽

Vol 7 (9) ◽

pp. 221-228

Author(s):

Yogi Makbul

Keyword(s):

Error Correction ◽

Error Correction Model ◽

Policy Intervention ◽

Correction Model ◽

Long Run ◽

Short Run ◽

Short And Long Term ◽

Rice Prices ◽

Support Policy

This research analyzes the short- and long-term influence of rice prices on the welfare of Indonesian farmers using an error correction model. Drawing upon data from Indonesia's Central Bureau of Statistics, it reveals that rice prices exert significant positive short-run effects and no significant long-run influence on farmers' welfare. These findings extend or refine results from earlier studies that lack the time series perspective of our research. They also support policy intervention by the Indonesian government to increase farmers' welfare and assure food supply.

Analisis Pengaruh Kinerja Keuangan terhadap Profitabilitas Bank Syariah di Indonesia

Economica Jurnal Ekonomi Islam ◽

10.21580/economica.2017.8.2.1702 ◽

2017 ◽

Vol 8 (2) ◽

pp. 175

Author(s):

Heri Sudarsono

Keyword(s):

Error Correction ◽

Error Correction Model ◽

Third Party ◽

Vector Error Correction Model ◽

Correction Model ◽

Factors Affecting ◽

Vector Error Correction ◽

Vector Error ◽

Long Run

This study aimed to analyze the factors affecting the amount of profitability (ROA) provided by Islamic banking in Indonesia. The data which is used is taken from the financial report of the Shari’a Bank during the 2011-2016 periods by using montly financial statement This study uses a Vector Error Correction Model (VECM) to see the long-term effect and response to shock that occur in the studied variables. The result shows that in the long run, the percentage Financing (FIN) and BOPO give a positive siqnifikant effect on the ROA, while third party funds (DPK), percentage profit and loss sharing (TBH), financial to deposit ratio (FDR) has negative and siqnificant effect on the ROA. Sertifikat Bank Indonesia Syariah (SBIS) and non performing finance (NPF) have no significant effect on the ROA. In short run, ROA give a negatif and siqnificant effect on the ROA and FDR give a positif and siqnificant effect, while DPK, FIN, SBIS, TBH, NPF and BOPO have no sinificant effect on the ROA. Therfore, shocks that occur in the ROA, FIN, FDR , NPF dan BOPO positively responded by ROA and will be stable in the long term. While the shocks that occur in the percentage of FDR, SBIS and TBH responded negatively by financing and will be stable in the long term.Penelitian ini bertujuan untuk menganalisis faktor-faktor yang memengaruhi profitabilitas (ROA) perbankan syariah di Indonesia. Data yang digunakan data bulanan dari laporan keuangan bank syariah periode 2010-2015. Penelitian ini mengunakan Vector Error Correction Model (VECM) untuk melihat dampak jangka panjang dan respon terhadap dampak shock pada setiap variabel terhadap pembiayaan. Hasil olah data menunjukkan bahwa FIN dan BOPO berhubungan positif terhadap ROA, sedangkan DPK, TBH, FDR berhubungan negatif terhadap dan ROA SBIS dan NPF tidak berpengaruh terhadap tingkat ROA. Dalam jangka pendek, ROA berhubungan negatif, tetapi FDR terhadap ROA berhubungan positif. Sedangkan DPK, FIN, SBIS, TBH, NPF and BOPO tidak berhubungan dengan pembiayaan. Di lain pihak, respon pembiayan terhadap goncangan yang terjadi terjadi pada ROA, FIN, FDR, NPF dan BOPO direspon positif oleh ROA. Sedangkan respon ROA terhadap goncangan yang terjadi pada FDR, SBIS dan TBH adalah negatif.

Analysis of Indonesian Tax Revenue

AFEBI Economic and Finance Review ◽

10.47312/aefr.v1i01.15 ◽

2017 ◽

Vol 1 (01) ◽

pp. 71

Author(s):

Amalia Wijayanti ◽

Firmansyah Firmansyah

Keyword(s):

Exchange Rate ◽

Error Correction ◽

Government Spending ◽

Inflation Rate ◽

Correction Term ◽

Error Correction Model ◽

Tax Revenue ◽

Correction Model ◽

Long Run ◽

This study analyzes the long-run and short-run effect of macroeconomic factors, such as real Gross Domestic Product (GDP), inflation rate, exchange rate and government spending on Indonesia’s tax revenue during 1976-2013, by utilizing the Error Correction Model (ECM). The finding of the study demontrates that in the long-run; the real GDP, exchange rate, and government spending affect Indonesia’s tax revenue, except the inflation rate. In short-run, Indonesia’s tax revenue statisically affected by government spending, while others variable do not influence Indonesia’s tax revenue. Error Correction Term (ECT) coefficient is 0.221, explains incompatibility tax revenue occur in long-run is corrected of 22 percent in one period. JEL Classification: E01, E20, H20 Keywords: Error Correction Model, Macroeconomic, Tax revenue

Causality between VAT and economic growth in Nigeria: An ARDL bounds testing approach

Journal of Emerging Economies and Islamic Research ◽

10.24191/jeeir.v6i1.8774 ◽

2018 ◽

Vol 6 (1) ◽

pp. 55

Author(s):

Hammed Agboola Yusuf ◽

Irwan Shah Zainal Abidin ◽

Normiza Bakar ◽

Oluwaseyi Hammed Musibau

Keyword(s):

Economic Growth ◽

Time Series ◽

Error Correction ◽

Trade Openness ◽

Value Added ◽

Error Correction Model ◽

Domestic Investment ◽

Correction Model ◽

Long Run ◽

Value Added Tax(VAT) is a consumption tax imposed at every stage of consumption level whose burden is burned by final consumer of goods and services. In most developing economies in the world, VAT as a source of revenue to the government that has been notable for its significant role in ensuring economic efficiency. However, VAT revenue has been underutilised in Nigeria due to a high level of corruption in the process of administering the tax. This study examines the impact of VAT, domestic investment and trade openness on economic growth in Nigeria from 1980 to 2016 using ARDL techniques. The research design is time series, and the data were analysed using time series unit root test, error correction model regression, short run and long run ARDL. The result found that VAT, domestic investment and trade openness had a positive and significant impact on real GDP. Also, corruption index is negative also significant in the long run. In the same vein, past value added tax had a negative and weak significant impact on real gross domestic product indicating convergence to long-run causality between economic growths and VAT and economic growth. The Error Correction Model (ECM (-1)) coefficient had a negative and statistically significant sign. This shows that 39 percent can quickly correct short-run deviation. The study, therefore, recommends that tax administrative loopholes should be plugged for tax revenue to contribute immensely to the development of the economy since past VAT had a significant impact on economic growth.

EFEK FISHER DI INDONESIA: PENDEKATAN CO-INTEGRATION DAN ERROR CORRECTION MODEL (ECM)

Jurnal Riset Manajemen dan Bisnis ◽

10.21460/jrmb.2014.91.225 ◽

2015 ◽

Vol 9 (1) ◽

pp. 51

Author(s):

Sri Fatmawati ◽

Algifari Algifari

Keyword(s):

Interest Rate ◽

Error Correction ◽

Inflation Rate ◽

Error Correction Model ◽

Fisher Effect ◽

Correction Model ◽

Integration Error ◽

Long Run ◽

Correction Technique ◽

The aim of this research is to examine the existence of Fisher Effect for Indonesian Economy, by regressing interest rate on rate of inflation in period 1980-2011. With co-integration and error correction technique, the results indicate that an increases of one percent in inflation rate lead to increase in interest rate at 0,13 percent in short-run and at 0,95 percent in longrun. This research can’t confirm the existence of Fisher Effect in Indonesian Economy in short-run, but this effect exists in long-run. Keywords: Fisher Effect, Interest Rate, Inflation Rate, Co-integration, Error Correction Model

Evaluating the Persistence of j Curve Phenomenon in the Bilateral Trade between Bangladesh and USA: The ARDL Bounds Testing Approach and Granger Causality Analysis

International Journal of Economics and Financial Research ◽

10.32861/ijefr.72.74.81 ◽

2021 ◽

pp. 74-81

Author(s):

Subroto Dey ◽

Homamul Islam

Keyword(s):

Exchange Rate ◽

Error Correction ◽

Granger Causality ◽

Trade Balance ◽

Error Correction Model ◽

Correction Model ◽

Long Run ◽

J Curve ◽

The Usa ◽

Most of the previously examined studies that investigated the repercussion of the trade balance to exchange rate mutation relied on the assumption that appreciation and depreciation behave symmetrically, recently several works have been conducted using the asymmetric analysis. In this work, we exhibited a model employing the disaggregated data (bilateral) of trade balance with the USA. In our pursuit, we endeavored to disclose a phenomenon of the J curve, is this pattern present in our trade balance and exchange rate bearing? In this article, first, we checked the stationary of data set and discovered the stationary employing the Augmented Dickey-Fuller test, Phillips Peron then applying the ARDL bounds test of cointegration apropos to find out the long run co integrated equations and last of all, tried to investigate the short-run and long-run relationship among the variables, while we used the ECM (error correction model). The Toda-Yamamoto Procedure for Granger Causality in a VAR framework has been applied to detect the causal direction. In our model, we have blazoned the negative short-run rapport between the exchange rate and trade balance in the bilateral data, whereas we have remarked a discrepant bearing in the long run and we did receive the evidence of the appearance of j pattern in the relationship between exchange rate and trade balance. Dispensing the error correction model, we found domestic higher price level hinders the trade balance in the short run, did not find any evidence of foreign income stimulate the export. Toda-Yamamoto Procedure for Granger Causality reveals the unidirectional causal effect from exchange rate to trade balance of Bangladesh with the USA.

The Impact Of Dividend Payments On Shareholders Wealth: Evidence From The Vector Error Correction Model

International Business & Economics Research Journal (IBER) ◽

10.19030/iber.v12i11.8182 ◽

2013 ◽

Vol 12 (11) ◽

pp. 1451 ◽

Cited By ~ 1

Author(s):

Johannes De Wet ◽

Mvita Mpinda

Keyword(s):

Error Correction ◽

Market Price ◽

Error Correction Model ◽

Vector Error Correction Model ◽

Correction Model ◽

Vector Error Correction ◽

Dividend Payments ◽

Vector Error ◽

Long Run ◽

To date, a vast body of research has been established on dividend policy. However, little research has been done on the impact of dividend payments on shareholders wealth while considering the short- and long-run effects. This study is based on a sample of 46 companies listed on the Johannesburg Securities Exchange (JSE) for the period 1995 to 2010. The Vector Error Correction Model (VECM) was used to describe the short-run and long-run dynamics or the adjustment of the co-integrated variables toward their equilibrium values. Results indicate that in the long run, dividend yield is positively related to market price per share, while earnings per share do not have a significant impact on the market price per share.

The impact of minimum wage on unemployment, prices, and growth: A multivariate analysis for Turkey

Economic Annals ◽

10.2298/eka1921065k ◽

2019 ◽

Vol 64 (221) ◽

pp. 65-83

Author(s):

Biçerli Kemal ◽

Merve Kocaman

Keyword(s):

Error Correction ◽

Minimum Wage ◽

Causality Test ◽

Producer Price ◽

Distributed Lag ◽

Autoregressive Distributed Lag ◽

Long Run ◽

Turkish Economy ◽

Short Run ◽

The aim of this study is to research the impact of minimum wage on unemployment, prices, and growth for the Turkish economy. The data used is monthly and covers the period from January 2005 to March 2017. The producer price index represents prices and the industrial production index represents growth. The Autoregressive Distributed Lag (ARDL) model is used to see the effect of the minimum wage on these variables. An error-correction based Granger causality test is then conducted to see short-run and long-run causalities. The bounds test yields evidence of a long-run relationship between variables. The obtained ARDL results also show that while the minimum wage has a statistically significant effect on unemployment and prices, it does not have a statistically significant effect on production. While there is short-run causality from minimum wage to prices only, the obtained significant error correction terms indicate long-run causality for all of the variables. Consequently, the minimum wage plays a significant role in increasing prices and the number of unemployed people in Turkey.

Trade Liberalization and Manufacturing Growth in Malaysia A Cointegration Analysis

Social and Management Research Journal ◽

10.24191/smrj.v3i1.5096 ◽

2006 ◽

Vol 3 (1) ◽

pp. 1

Author(s):

Karunagaran Madhavan ◽

Deviga Vengedasalam ◽

Veera Pandiyan Vengedasalam

Keyword(s):

Error Correction ◽

Trade Liberalization ◽

Manufacturing Sector ◽

Cointegration Analysis ◽

Correction Model ◽

Long Run ◽

Equilibrium Relationship ◽

Short Run ◽

Manufacturing Growth ◽

This study examines the impact of trade liberalization in the manufacturing sector in Malaysia. The theoretical framework for this study employs the Lucas model of 'human capital model of endogenous model'. This study also uses the cointergration test and error correction techniques to measure the impact of trade liberalization on Malaysian manufacturing sector during the period 1963-2003. The empirical results of cointergration test suggest that there exists a long run relationship between manufacturing output and its determinants of trade liberalization, labour, capital and education level. This study uses error correction model (ECM) to determine the short-run dynamics around the equilibrium relationship and suggest that labour and trade liberalization have emerged as significant determinants for the manufacturing output in Malaysia.