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Transmission Mechanism from Money Supply to Inflation in Nigeria
Issue:
Volume 4, Issue 6, December 2015
Pages:
98-105
Received:
11 August 2015
Accepted:
6 September 2015
Published:
24 September 2015
Abstract: This paper seeks to establish the transmission mechanism from money supply to inflation in Nigeria in order to resolve the controversy of whether money supply or interest rate should be a target of monetary policy. In doing this, a recursive vector autoregression (VAR) model is employed using data from first quarter 2000 to fourth quarter 2013. The response of CPI to money supply ranges from zero to 0.014. The response of interest rate to money supply ranges from -0.094 to 0.021. The response of exchange rate to CPI ranges from -0.007 to 0.013. The response of exchange rate to interest rate ranges from -0.004 to 0.003. The response of CPI to exchange rate ranges from -0.002 to 0.010. The positive and significant responses of CPI to money supply and exchange rate to CPI indicate that the impact of the change in money supply is transmitted to inflation in Nigeria through the money-price link. The insignificant response of exchange rate to interest rate shows that the impact of the change in money supply is not transmitted to inflation in Nigeria through the money-interest link. The target of monetary policy should be the money supply and not interest rate.
Abstract: This paper seeks to establish the transmission mechanism from money supply to inflation in Nigeria in order to resolve the controversy of whether money supply or interest rate should be a target of monetary policy. In doing this, a recursive vector autoregression (VAR) model is employed using data from first quarter 2000 to fourth quarter 2013. The...
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Assessment of Banking Performance Using Capital Adequacy in Ethiopia
Issue:
Volume 4, Issue 6, December 2015
Pages:
106-111
Received:
28 July 2015
Accepted:
12 August 2015
Published:
3 November 2015
Abstract: The data used in this study were collected from financial reports of eight sample banks and National bank of Ethiopia (NBE) for the period of 2000-2013. The objectives of the study were to evaluate the financial performance of banking sector in the Ethiopia and also to see the relation between capital adequacy and bank’s performance. In order to address these, both descriptive and econometric analyses were employed so as to assess the financial performance of the sector and the relationship between capital adequacy and bank performance. The descriptive analyses were made using CAMEL approach and central tendency measures. The descriptive data analysis shows that, as compared to other banks NIB’s overall performance was good.In addition to the descriptive data analysis, the study also employed regression model, GLS, which is used to see whether capital adequacy which is measured by the amount of shareholders fund affect the bank performance which is measured by Return on asset (ROA). The finding shows that, shareholders’ fund is the main factor that determines the performance of banking industry hence, the null hypothesis is rejected. Therefore, there exists positive relationship between capital adequacy and bank performance at 5% significant level, which is in line with theory.
Abstract: The data used in this study were collected from financial reports of eight sample banks and National bank of Ethiopia (NBE) for the period of 2000-2013. The objectives of the study were to evaluate the financial performance of banking sector in the Ethiopia and also to see the relation between capital adequacy and bank’s performance. In order to ad...
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Descriptive Study of 2013 China per Capita Wage in Logistics and Transportation Industry
Jie Zhu,
Ruoling Zhang,
Binbin Fu,
Renhao Jin
Issue:
Volume 4, Issue 6, December 2015
Pages:
112-117
Received:
31 October 2015
Accepted:
9 November 2015
Published:
19 November 2015
Abstract: This paper does a descriptive study on 2013 area level per capita wage in logistics and transportation industry data in China. The per capita wage value is found to have increased over 11 years with annual increasing rate 13.9%. However, China per capita value is still less than western countries. The spatial autocorrelations are found in the area per capita wage data, and area per capita wage data is found to be high correlated with area per capita GDP data and area per capita wage in employment.
Abstract: This paper does a descriptive study on 2013 area level per capita wage in logistics and transportation industry data in China. The per capita wage value is found to have increased over 11 years with annual increasing rate 13.9%. However, China per capita value is still less than western countries. The spatial autocorrelations are found in the area ...
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Emerging Relationships Between Macroeconomic Indicators and Real Economic Activities in Ghanaian Economy
Nana Kena Frempong,
Peter Amoako-Yirenkyi,
Akoto Yaw Omari-Sasu,
Derrick Asamoah Owusu
Issue:
Volume 4, Issue 6, December 2015
Pages:
118-124
Received:
9 November 2015
Accepted:
19 November 2015
Published:
10 December 2015
Abstract: The aim of this study is to empirically estimate the sensitivity of inflation and interest rate together with some key macroeconomic variables on real economic activity index. Secondly, to investigate the direction of causality between inflation and interest rate, interest rate and real economic activity index, as well as between inflation and real economic activity index. Thirdly, to investigate how the real economic activity reacts to shocks from inflation and interest rate and other key macroeconomic variables. A deterministic time series regression model, vector autoregressive model, cointegration method and Granger Causality Analysis were implored in the analysis. The results show that there exists a unique long-run relationship between real economic activity and the other variables. Accordingly, inflation is identified as important determinant of real economic activity growth in Ghana. Conversely, real economic activity was found not to significantly determine inflation and interest rate within the period under investigation. The relationship between inflation and interest rate is, however, significant determined positive in either direction. This means that the link between inflation, interest rate and economic activity is not immediately automatic.
Abstract: The aim of this study is to empirically estimate the sensitivity of inflation and interest rate together with some key macroeconomic variables on real economic activity index. Secondly, to investigate the direction of causality between inflation and interest rate, interest rate and real economic activity index, as well as between inflation and real...
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Testing Causality and Cointegration Between Saving and Investment in Bangladesh
Zubaidur Rahman,
Md. Elias Hossain
Issue:
Volume 4, Issue 6, December 2015
Pages:
125-131
Received:
13 August 2015
Accepted:
24 September 2015
Published:
18 December 2015
Abstract: Interaction between saving and investment has been a major concern to the economists and there exists substantial debate over the nature of long run relationship between them. Thus, the main objective of this paper is to examine the dynamic linkages between saving and investment in Bangladesh using annual time series data covering the period from 1980 to 2014. The stationarity of the data is examined by using the Augmented Dickey-Fuller (ADF) and Phillips-Perron (PP) unit root tests. This paper applied the Johansen-Juselius cointegration test to examine the long run relationship between saving and investment. In order to show the direction of causal relationship between saving and investment, the widely used Granger causality test has been used. The unit root tests revealed that both saving and investment are non-stationary at level forms and they become stationary after taking their first difference. The Johansen-Juselius cointegration analysis suggests that, there exists a long run relationship between saving and investment as it is confirmed by both the Trace and Maximum Eigen-value test statistics. Results found from the Granger causality test suggests that unidirectional causality running from saving to investment existed in Bangladesh over the sample period for a lag length of two periods. Based on the results, pursuance of policy measures towards mobilizing domestic saving is recommended.
Abstract: Interaction between saving and investment has been a major concern to the economists and there exists substantial debate over the nature of long run relationship between them. Thus, the main objective of this paper is to examine the dynamic linkages between saving and investment in Bangladesh using annual time series data covering the period from 1...
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Origin and Evolution of the Handloom Industry of Fulia and Its Present Scenario, Nadia District, West Bengal, India
Nilay Kumar Basak,
Pintu Paul
Issue:
Volume 4, Issue 6, December 2015
Pages:
132-138
Received:
21 November 2015
Accepted:
3 December 2015
Published:
4 January 2016
Abstract: This present paper is concerned with the origin and evolution of the handloom industry of Fulia with its present status and also indicates the problems facing by this industry. To prepare this paper, different types of literature have been studied and field survey has also been done. After studying and processing those data, it can be known that the weavers of Fulia came from Tangail Subdivision of East Pakistan (now a district of Bangladesh) during the partition in 1947 and the Bangladesh freedom war in 1971 and the sharis weaved by them known as ‘Tangail Shari’ . Though after independence, the development of Tangail Shari took place at Fulia, in the next two decades it faced many difficulties like unjust wage, money lender exploitations, poor infrastructure etc. In this crucial circumstance, weavers started movement for their survival and a Co-operative has been organized in 1977. This development becomes possible not only for the Co-operative but also for the individuals venture. The productions are exported in different states of India as well as in different countries of the world. The weavers of Fulia are only carrying the traditional style of Tangail Shari. But this handloom industry of Fulia is now facing different problems like competition with powerlooms, increasing rate of raw materials, low wages, commercialization of electricity, imported sharis from Bangladesh, lack of organized marketing system, rejection of exporting clothes etc. So from the study, it can be concluded that the joint venture of both the Central Government and the State Government is highly solicited for the development of the handloom industry and also for the region as Fulia is only centre of Traditional Tangail Shari in all over the India.
Abstract: This present paper is concerned with the origin and evolution of the handloom industry of Fulia with its present status and also indicates the problems facing by this industry. To prepare this paper, different types of literature have been studied and field survey has also been done. After studying and processing those data, it can be known that th...
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