Does Fisher Effect Hold in Sri Lanka? An Analysis with Bounds Testing Approach to Cointegration

2010 ◽  
Author(s):  
Prabhath Jayasinghe ◽  
Thuraisingam Udayaseelan
Keyword(s):  
Sri Lanka ◽  
Fisher Effect ◽  
Bounds Testing ◽  
Bounds Testing Approach ◽  
Testing Approach

scholarly journals Energy, Trade, Urbanization and Environmental Degradation Nexus in Sri Lanka: Bounds Testing Approach

Energies ◽  
2019 ◽  
Vol 12 (9) ◽  
pp. 1655 ◽  
Author(s):  
Gasimli ◽  
Haq ◽  
Gamage ◽  
Shihadeh ◽  
Rajapakshe ◽  
...  
Keyword(s):  
Energy Consumption ◽  
Sri Lanka ◽  
Carbon Emissions ◽  
Structural Break ◽  
Trade Openness ◽  
Bounds Testing ◽  
Energy Trade ◽  
Bounds Testing Approach ◽  
Testing Approach

This study examines the nexus between energy, trade, urbanization and environmental degradation in Sri Lanka. The time series data has been checked for unit root problem along with unknown structural break. The bounds testing approach confirms the long-term relationship among carbon emissions, energy consumption, income, trade openness, and urbanization in the presence of structural break. The results of the study do not confirm the presence of the EKC (Environmental Kuznets Curve) hypothesis in Sri Lanka. This study finds that energy consumption leads to carbon emissions in both the long term and the short term. Trade openness is degrading environmental quality, as trade is responsible for the accumulation of carbon emissions in the atmosphere. The results of the study confirm that urbanization has been found to have significant and negative effect on carbon emissions. The study finds that the model is in equilibrium and the model will return to equilibrium from any external shock in less than two years. Policy measures are recommended for sustainable environment of the island.

scholarly journals Effects of Exchange Rate on Foreign Direct Investment Inflow in Nigeria

2019 ◽  
pp. 1-12
Author(s):  
Chukwurah, Josephine Chikwue
Keyword(s):  
Foreign Direct Investment ◽  
Exchange Rate ◽  
Unit Root ◽  
Direct Investment ◽  
Foreign Direct Investment Inflow ◽  
Bounds Testing ◽  
Short Run ◽  
Bounds Testing Approach ◽  
Testing Approach ◽  
The Impact

Aims: This study examined the place of exchange rate in determining foreign direct investment inflow into the Nigerian economy using time series data from 1980 to 2017. Study Design:  Historical research design method was adopted for the study, it uses secondary sources and a variety of primary documentary evidence. Place and Duration of Study: Department of economics, faculty of social sciences, Nnamdi Azikiwe University, between September 2010 and May 2018. Methodology: The method adopted for this study was the Autoregressive Distributed Lag (ARDL) estimation approach and error correction mechanism within the framework of dynamic OLS (DOLS) estimation. The analysis began with a verification of the unit root properties of the variables. The Augmented Dickey Fuller (ADF) and Philips-Perron (PP) unit root procedures were employed and both tests indicate that the variables were integrated of either order I(0) or order I(1). This warranted the use of Bounds testing approach in determining the cointegration among the variables in the various equations in the selected countries. Analysis using the Bounds testing approach to cointegration confirmed the existence of long run relation among the variables of the models. In determining the impact of exchange rate on foreign direct investment inflow in Nigeria, we estimated an ARDL model. Results: The results indicate that exchange rate affects FDI in both the long and short run. The result also reveals that the impact of exchange rate on FDI in the short run continuous up to three periods after the initial disturbance. Conclusion: This study concluded that exchange rate appreciation will lead to increases in foreign direct investment inflow. The study therefore recommended, amongst others, that government should apply exchange rate regime that is competitive at the international market so as to attract more FDI inflow to the Nigeria economy.

Sign in / Sign up

Export Citation Format

Share Document