...the Canadian economy. Household saving is defined as the difference between a household’s disposable incomes mainly wages received, revenue of the self-employed and net property income and its consumption (expenditures on goods and services). The household savings rate is calculated by dividing household savings by household disposable income. A negative savings rate indicates that a household spends more than it receives as regular income and finances some of the expenditure through credit (increasing debt), through gains arising from the sale of assets (financial or non-financial), or by running down cash and deposits. Since the early-to-mid-1990s, savings rates have been stable in some countries but have declined in others - in some cases sharply, including in Australia, Canada, Japan, Hungary, South Korea, the United Kingdom and the United States. The Harrod-Domar (Domar, 1946 and Harrod, 1939) growth model suggests that the rate of growth in an economy is induced by availability of capital stock. They identified rate of savings to be the major source of growth in an...
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...during the crucial times when my head Was down but they gave me that extra strength and support to push forward and Complete this project on time. Abstract In recent years, we have observed an increase in interest from both individuals’ institutions and investors in emerging markets. It’s important for the investors to know whether the market is efficient, inefficient or neutral. This study wishes to document the Pakistani market and their Stock Exchange by looking at the existence of Calendar Anomalies such Monday effect and the January effect. Secondly this study investigates the presence of the so-called Moving Calendar anomaly, the “Ramadan Effect”. The following three indices are used: KSE-100, LSE-25 and ISE-10. An OLS regression and a GARCH (1,1) methodology will be used for the testing daily, weekly and monthly returns. The findings of this study shows the existence of Monday effect in ISE-10 index using the OLS methodology, however this effect wasn’t present using GARCH (1,1). By sub-sampling we observed the presence of Monday effect in KSE-100 before 2002.There are significantly higher returns on Wednesdays and Fridays for all the three indices. January effect was not present in any of the three indices. There wasn’t a strong evidence of a significantly negative returns during the month of...
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...level 7 in building 80 or sent via the post. Tutorials sent in the mail must be post marked on or before the submission date. Only hard copies will be accepted, also it is best to use a cover sheet. That is, tutorials cannot be submitted by email or via the Learning Hub. ____________________________________________________________________ T1 - 10 marks: DUE DATE: Friday 20th March 2015 SIMPLE LINEAR REGRESSION T1 covers the material in Modules 1 and 2. You are not expected to use material from later modules to answer these questions, but you may need to refer to material covered in Quantitative Methods in Finance and other finance courses. QUESTION 1 – A Cross-sectional study In this question you will be investigating the relationship between exports and imports using a cross-country study. The data needed is on the sheet called countries in the file Tutorial data s1 2015.xls. Economic data on the world’s countries and territories, including exports and imports is sourced from the CIA World Factbook and can be found at: https://www.cia.gov/library/publications/the-world-factbook/ (a) Check and clean the data on exports and imports so it can loaded into Eviews (you will need to do this for all data used in this Tutorial). Checking and setting the data in horizontal line, then copying file to Eviews. (b) Do scatter plots of the raw and logged data values. Based on these plots decide what values to use for the rest of this question. The linear graph...
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...Financial Econometrics Modeling and Forecasting Natural Gas Prices Abstract In this project we will model and forecast the natural gas prices over the short-term through the development of the Error Correction Model (ECM). This is presented as the best predictive model among various alternatives. To build this model, we gathered the oil prices to analyze the impact of the changes in these prices on the changes in natural gas prices. The results of the forecasting exercise, carried out using the US Natural Gas 3 Months Strips series, suggest that the forecasting approach can be used to obtain a performance measure for the price. Key words: ARMA; ECM; Cointegration; Forecasting; Natural Gas Prices; Oil Prices. JEL Classification: G17 Index 1- Introduction – The Natural Gas ............................................................................................................... 3 2- Theoretical Framework ............................................................................................................................ 4 3- Empirical Model ....................................................................................................................................... 5 3.1- Methodology – the data .......................................................................................................... 5 3.2- The Model ................................................................................................................................ 6...
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...Jurnal £kollomi Malaysia 35 (2001) 61 - 68 Interest Rate and Loan Supply: Islamic Versus Conventional Banking System Liza Marwati Mohd Yusoff Aisyah Abdul Rahman Norazlan Alias ABSTRACT This paper attempts to explore the effect of interest rate 011 loan supply of Islamic banking alld Convemional banking system. The analysis segregated the Islamic and COllvellfional banking system imo commercial bank, finance company alld merchant bank. Overnight alld 3 month Klibor are llsed as interest proxy. Unit root test, Granger Causality test, Akaike Information Criterion and Regression analysist are IIsed in the study. The results of Granger Causality test indicate that the growth of overnight Klibor ca uses changes in the growth of Islamic and Conventional loan of Mercham Banks significantly and from the regression analysis, it is confirm that Islamic and Conventional loan growth of merchant bank are significantly positive related to overnight Klibor. INTRODUCTION The additional amo}Int a borrower pays a lender, over and above the borrowed sum (principal) is commonl y called interest. This interest depends on the size of the principal and the length of time the borrower takes to repay the principal and interest. For this reason, and for computational convenience, interest is usually expressed in terms of percentage per annum and is called the rate of interest. In banks there are three players. The players are the bank, the depositor and the borrower. The depositor places...
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...European Scientific Journal January 2013 edition vol.9, No.1 ISSN: 1857 – 7881 (Print) e - ISSN 1857- 7431 AGRICULTURE FINANCING AND ECONOMIC GROWTH IN NIGERIA Obansa S. A. J. Departments of Economics University of Abuja I. M. Maduekwe Departments of Economics and Agric. Economics Department University of Abuja Abstract The importance of agricultural surplus for the structural transformation accompanying economic growth is often stressed by development economists. This lead to the question: Does agriculture financing matters in the growth process? To this end, the need to investigate the impact of agriculture financing on economic growth appears more imperative for Nigeria. This paper employed secondary data and some econometric techniques such as Ordinary Least Square (OLS); Augmented Dickey-Fuller (ADF) unit root test; Granger Causality test. The results of the various models used suggest that there is bidirectional causality between economic growth and agriculture financing; and there is bidirectional causality between economic growth and agricultural growth. It further suggests that productivity of investment will be more appropriately financed with foreign direct private loan, share capital, foreign direct investment and development stocks. And also capital-output ratio will be more appropriate financed with multilateral loan, domestic savings, Treasury bill, official development assistant, foreign direct investment and development stock. It is recommended that maintenance...
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...Does Saving really matter for Growth in Developing Countries? The Case of a Small Open Economy Olajide S. Oladipo, PhD Department of Economics and Finance School of Business, Medgar Evers College 1637 Bedford Avenue, Brooklyn, NY 11225 Email: ooladipo@ mec.cuny.edu Abstract The study employed the Toda and Yamamoto (1995) and Dolado and Lutkepohl (1996) – TYDL- methodology to uncover the direction of causal relationship between savings and economic growth in Nigeria between 1970 and 2006. The empirical results suggest that savings and economic growth are positively cointegrated indicating a stable long run equilibrium relationship. Further, the findings revealed a unidirectional causality between savings and economic growth and the complementary role of FDI in growth. Keywords: Cointegration, FDI, Savings and Economic Growth JEL Classification: C32; E21;O11 Does Saving really matter for Growth in Developing Countries? The Case of a Small Open Economy Introduction The relationship between savings and economic growth has received increased attention in recent years especially in developed and emerging economies [see Bacha (1990), DeGregorio (1992), Levine and Renelt (1992), and Jappelli and Pagano (1994)]. This might not be unconnected to the central underpinning of Lewis’s (1955) traditional development theory that increasing savings would accelerate economic growth. Research efforts by Kaldor (1956) and Samuelson and Modigliani (1966) examined how different savings...
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............................................................... 2 2 Methodology ........................................................................................................................... 4 2.1 ARCH and GARCH ......................................................................................................... 4 2.2 EGARCH ......................................................................................................................... 4 2.3 GJR-GARCH ................................................................................................................... 5 2.4 Distributions ..................................................................................................................... 5 2.5 Information criterions ....................................................................................................... 6 3 Data ......................................................................................................................................... 7 3.1 Descriptive statistics ......................................................................................................... 7 4 Results ..................................................................................................................................... 9 4.1 Evaluation of the models ................................................................................................ 10 5 Conclusion...
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...partial fulfilment of the requirements for the MSc Finance degree at Institute of Management Sciences, Peshawar Pakistan. Supervisor Name: Dr. Yasir Kamal Designation: Assistant Professor Coordinator Research and Development Department Name: Dr. Owais Mufti Declaration I, hereby declare that the research submitted to R&DD by me is my own original work. I am aware of the fact that in case my work is found to be plagiarized or not genuine, R&DD has the full authority to cancel my research work and I am liable to penal action. Student’s Name: Shah-i-Mulk Date: 23/12/2015 Abstract Study was carried out to investigate the dynamic linkage among the three fast growing emerging Islamic economies of Asia (Malaysia, Indonesia and Pakistan) the data incorporated for analysis were spread over the span of 15 years 2000-2015. It was estimated that these stock markets have strong impact on each other hence, strongly integrated among themselves. Study utilised EVIEWS software for the analysis and the test incorporated in the estimation were ADF and Johanson Cointegration Test. The study further illustrates that practice of Islamic financial solutions and cultures of these countries has also supportive hand in co movements of stock markets. Keywords: Cointegration, ADF, emerging economies, Islamic financial markets. Contents Certificate of Approval ii Declaration iii Abstract iv 1. Introduction 1 Objective of the research: 4 Research Significance: 4 2. Literature...
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...OF BUSINESS MANAGEMENT UNIVERSITI TEKNOLOGI MARA, JOHOR. DECEMBER 2013 i BACHELOR OF BUSINESS ADMINISTRATION (HONS) FINANCE FACULTY OF BUSINESS MANAGEMENT UNIVERSITI TEKNOLOGI MARA SEGAMAT, JOHOR DECLARATION OF ORIGINAL WORK NOR AMIRA IZZATI BINTI MOHD IKHWAN 2011362629 NUR HASIDAH BINTI HUSSEIN 2011391659 We are here by, declare that, This work has not previously been accepted in substance for any degree, locally or overseas and is not being concurrently submitted for this degree or any other degrees. This project paper is the result of our independent work and investigation, except where otherwise stated. All verbatim extracts have been distinguished by quotation marks and sources of our information have been specifically acknowledged. Signature: _______________ Date: _________________ ii LETTER OF SUBMISSION 1ST December 2013 Lecturer of Research Methodology Faculty of Business Management Universiti Teknologi MARA 85009 SEGAMAT JOHOR DARUL TAKZIM Dear Sir, SUBMISSION OF PROJECT PAPER Attached is the project paper titled “Determinants of foreign direct investment in the Malaysian manufacturing sector” to fulfill the requirement as needed by the Faculty of Business Management,...
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...CONTENTS INTRODUCTION…………………………………………………………………………………….3 SECTION 1 Individual demand for Private good……………………………………………………………...4 SECTION 2 Engel Model OLS Estimtion………………………….………………………………………….6 Empirical Results explanation………………....………………………………………………….8 Analysis of Scale Economies across Different Income Groups……..………………………..…10 SECTION 3 Economies of Scale and Poverty Measure……………………………………………………….12 Economies of Scale and Welfare Comparison…………………….…………………………….13 Implication of Economies of Scale to the Government Welfare Policy..……………………….14 CONCLUSION………………………………………………………………………………………17 REFERENCE….…………………………………….………………………………………………18 APPENDIXES Appendix1. Explanation of Variables…………………………………………………………21 Appendix2. Estimated Results of Engel Curve……………………………………….……….22 Appendix3. Estimated Results of Engel curve without control variables for performing F-Test……….…………………………………22 Appendix4. Estimated Results of Engel Curve for 5 Income Groups…………………………23 Appendix5. OECD Equivalence Scale………………………………………………………...26 INTRODUCTION The paper discusses household resources allocation between jointly consumed goods (public goods) and those consumed individually (private goods); and implication of household scale economies to the government welfare policy. The first section focuses on the derivation of the individual demand function for private good, and the effect of change in household size on private good consumption...
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...MIDDLE EAST TECHNICAL UNIVERSITY THE FOREIGN DIRECT INVESTMENT AND ECONOMIC GROWTH IN TURKISH ECONOMY A TERM PAPER SUBMITTED IN PARTIAL FULLFILLMENT OF THE REQUIREMENTS OF THE COURSE ECON 466 DEPARTMENT OF ECONOMICS BY VEYSEL ERDEM TORAMAN FALL, 2012 ABSTRACT This paper elaborates on the foreign direct investment and the economic growth in the Turkish economy by surveying literature and constructing empirical analysis. The Turkish economy and its brief history with foreign direct investment is analyzed following and both empirical studies and researches showed that the low and inadequate levels of foreign direct investment in Turkey has no effect on economic growth. 1. INTRODUCTION In simplest economic terms, investment is what makes the economy grow in terms of inputs of production, technology and other instruments causing the production process to occur. An in a globalized worlds of ours, the investment could be foreign or domestic whether the economy is not eligible to support their own, open to trade or highly geopolitical. Foreign investment may bring foreign currency, technology transfer, skilled labor etc. and all of those are crucial for a country to grow in both financial and real terms. In other words, in today’s world, for most of the countries, attracting and getting foreign direct investment is very important. There are economies that have almost 20-25% of their GDP’s as foreign investment. The types of this foreign investment may be direct...
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...Annales Universitatis Apulensis Series Oeconomica, 15(2), 2013, 594-604 ANALYSIS OF THE ROMANIAN BANKS’ PERFORMANCE THROUGH ROA, ROE AND NON-PERFORMING LOANS MODELS Adela Socol1 Adina Elena Dănuleţiu2 ABSTRACT: General assumption of this study is that the banks performance represents their ability to generate sustainable profitability and that banks’ profitability is one important issue of contemporary banking field, grace to its role in emphasizing of the financial soundness of banks, abreast to others indicators regarding to the capital adequacy or assets quality. The paper examines how is affected banking profitability (expressed through traditional measures of performance ROA - Return on Assets and ROE - Return on Equity) by the CRR Credit risk ratio in Romanian banking system during March 2008 - June 2013. We developed two regression models in order to study the dependence between mentioned variables. We found that ROA and ROE vary each of them depending on the CRR Credit risk ratio, which is expressed as the ratio of gross value of exposure to loans and related interest under “doubtful” and “loss” to total classified loans and related interest pertaining to non-bank loans, off-balance sheet items excluded. Keywords: ROA Return on Assets, ROE - Return on Equity, Credit risk ratio, Regression model JEL Codes: D12, C58, G21 Introduction Significant level of non-performing loans and faster cross-border deleveraging are considered the major weaknesses...
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...mechanical, photocopying, recording, scanning, or otherwise, without the prior consent of the authors. DECLARATION We hereby declare that: (1) This undergraduate research project is the end result of our own work and that due acknowledgement has been given in the references to ALL sources of information be they printed, electronic, or personal. (2) No portion of this research project has been submitted in support of any application for any other degree or qualification of this or any other university, or other institutes of learning. (3) Equal contribution has been made by each group member in completing the research project. (4) The word count of this research report is 10,786 words. Name of Student: Student ID: Signature: 1. KOH YONG HONG 11ABB02521 2. CHOONG PIK SIN 12ABB02336 3. LEE SOCK MEI 12ABB05139 4. NG HON MENG 12ABB05200 5. LEONG MUN HONG 12ABB05037 Date: 22nd March 2016 ACKNOWLEDGEMENT It is not easy to complete this final year project, we need a lot of support and help from many people, and also information gathers from internet. First of all, we wanted to thank UTAR for...
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...AN ANALYSIS OF THE EFFECTS OF INTEREST RATE AND EXCHANGE RATE CHANGES ON STOCK MARKET RETURNS: EMPIRICAL EVIDENCE OF GHANA STOCK EXCHANGE A thesis submitted to the Institute of Distance Learning, Kwame Nkrumah University of Science and Technology in partial fulfillment of the requirement for the degree of COMMONWEALTH EXECUTIVE MASTERS OF BUSINESS ADMINISTRATION Institute of Distance Learning, KNUST JUNE, 2011 DECLARATION I hereby declare that this submission is my own work toward the Commonwealth Executive Master of Business Administration and that, to the best of my knowledge, it contains no material previously published by another person nor material which has been accepted for the award of any other degree of the University except where due acknowledgement has been made in the text. RANSFORD CHARLES ENYAAH (STUDENT ID No: 20103521) …………………… Signature …………………. Date Certified by: EDWARD ACHEAMPONG (SUPERVISOR) …………………… Signature …………………. Date Certified by: ……………………………… Head of IDL …………………… Signature …………………. Date i DEDICATION I dedicate this project work to the Lord Almighty and all my loved ones. ii ACKNOWLEDGEMENT First of all, I thank the almighty God for fulfilling his promises to my life and for granting me the strength, wisdom and knowledge to complete this work My profound gratitude goes to my Supervisor, Mr. Edward Acheampong (Lecturer, Methodist University College, Ghana) for his unflinching dedication...
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