Relationship between Macroeconomic Policy and Long-Run Economic Growth of Nepal

Background: The paper is an attempt to find the long-run relationship between macroeconomic variables and economic growth in Nepal. The variables in the study are run across the Cobb-Douglas production model. Objective: This paper examines the relationship between Gross Fixed Capital Formation, Population, Trade openness, Money Supply and GDP growth economic growth in Nepal. Method: The ARDL bound test and Error Correction model incorporated in the study to examine the long-run relationship among macroeconomic variables. Conclusion: Based on the Bound Test of F-statistics the Cointegration Result exists among the variable and ARDL (1,1,1,1,1) relation is estimated. Implications: Since the study has found the existence of a cointegration relationship on the variables of the study and the long-term relationship among economic growth is significant with GFCF. The policy should be targeted at investment growth in Nepal.

How Selected Macroeconomic Factors Affect the Corporate Profitability of Transportation and Storage Companies in Selected European Economies

The goal of most companies is to make a certain amount of profit, to which all-important business decisions are a subject. The importance of this goal is evidenced by the fact that profitability indicators belong to the key indicators of business success. Unfortunately, profitability is affected by many often-unpredictable factors, which usually come from the external environment of the company. In this research, these factors are represented by GDP growth rate, inflation rate, reference interest rate, unemployment rate, gross fixed capital formation and the exchange rate against the euro. The aim of the research is to find out whether selected factors influence the company’s profitability or not. Companies of the transportation and storage industry coming from eight selected economies of Central and Eastern Europe are the subject of the analysis. The industry will be analysed at the level of fifteen sub-industries using the Generalized Method of Moment. The data cover the period 2010–2018 and provide information on approximately 25,000 companies. The size of the sample does not allow the results to be summarized in one sentence, but they showed that companies in the selected industry are for the most part negatively affected by the reference interest rate of the economy.

APPRAISAL OF ENERGY CONSUMPTION AND CARBON DIOXIDE EMISSIONS ON FIXED CAPITAL FORMATION IN NIGERIA

There is growing interest for the use of renewable energy and carbon dioxide emission in Nigeria, and the world over.Despite the volume of consumption, and the enabling oil and gas laws to protect the environment and improve the well-being of citizens over the years, the gross fixed capital formation have not received a remarkable growth in Nigeria which motivated for this study. The gross fixed capital formation was the dependent variable against energy consumption, and carbon dioxide emission that represented the explanatory variables were sourced from the World Bank and the Central Bank of Nigeria Statistical Bulletin between 1985-2014. The study adopted the Augmented Dickey-Fuller and the Autoregressive Distributive Lag model for the analysis. The data were integrated at levels and first order differenced. The Johansen cointegration test indicated co-integrating equations in long run. Furthermore, the error correction found energy consumption to be positive, while carbon dioxide emission had a negative but insignificant impact on the Nigerian fixed capital formation. The study recommended the ministry of environment to enforce the existing oil and gas laws, and advocate for the use of modern energy in rural areas of Nigeria.

PENGARUH REMITANSI TERHADAP PERTUMBUHAN EKONOMI LIMA NEGARA BERKEMBANG DI ASEAN (2005-2016)

This study aims to identify the effect of remittances on economic growth. The objects used in this study are five ASEAN countries, namely Indonesia, Cambodia, the Philippines, Vietnam, and Thailand, for the period 2005 to 2016. There are other variables, namely gross fixed capital formation, household consumption expenditure, trade, and population growth which are used as control variable in this model. This study uses a quantitative approach and panel data methods. As a result, there are significant and negative effects on remittances: significant and positive effects on gross fixed capital formation, significant and positive effects on household consumption expenditures, significant and positive effects on trade, and significant and negative effects on population growth on economic growth in five countries. ASEAN.

PENGARUH VARIABEL EKONOMI MAKRO TERHADAP PEMBIAYAAN PERBANKAN SYARIAH PERIODE 2010-2018

This study aims to identify the effect of remittances on economic growth. The objects used in this study are five ASEAN countries, namely Indonesia, Cambodia, the Philippines, Vietnam, and Thailand, for the period 2005 to 2016. There are other variables, namely gross fixed capital formation, household consumption expenditure, trade, and population growth which are used as control variable in this model. This study uses a quantitative approach and panel data methods. As a result, there are significant and negative effects on remittances: significant and positive effects on gross fixed capital formation, significant and positive effects on household consumption expenditures, significant and positive effects on trade, and significant and negative effects on population growth on economic growth in five countries. ASEAN.

Assessing the Determinants of Electricity Generation Infrastructure in Nigeria

The supply and demand for electricity have outpaced available infrastructure in Nigeria despite the abundant energy resources. The paper investigates the determinants of electricity generating infrastructure in Nigeria for the period 1980 to 2016. Using an Autoregressive Distributed Lag model, electricity generation capacity was used as an indicator for electricity infrastructure development. Its expansion was based on the behaviour of inflation rate, total government expenditure, interest rate, private sector financial credit, exchange rate, real GDP per capita, real gross fixed capital formation, and the rate of urbanisation. Financial credit to private sector, total public expenditure, real per capita income, real gross fixed capital formation, urbanization, and exchange rate adversely affect the development of electricity generation capacity. Investment in generating assets is capital intensive, which should be matched with adequate private sector financing. If the power sector subsidy will remain and achieve its objective, strategies that will lead to sustaining exchange rate stability should be promoted. Based on estimate, every one million population require 1000MW of electricity to function in modern-day society implying that Nigeria needs 180,000MW of electricity capacity. The realisation of this is hinged on large scale electricity infrastructure investment enabled, partly, by the favourable macroeconomic environment.JEL Classification: E16, O1, O2

Assessing factors affecting FDI in developing Asian countries

The paper focuses on various factors that affect the inflow of Foreign Direct Investment in developing countries. The study majorly deals with Asian countries, namely India, China, Myanmar, Nepal, Pakistan, Bangladesh and Bhutan, that are progressing from being aid-dependent to trading giants. The factors affecting FDI are majorly categorised into dependent and independent variables. Here, in this study, the dependent variable considered is FDI inflow, and independent variables are market size, the value of the currency, export, import, gross fixed capital formation, GDP deflator, cost of borrowing and economic reforms. Pooled Ordinary Least Square (OLS), fixed effect and random effect regression analysis is done to ascertain the best regression model and various tests are performed to check the intensity of effect caused by each independent variable on our dependent variable.

Investment in South Africa

Since the achievement of democracy, high levels of gross fixed capital formation have been required for the economic and social transformation of South Africa. Public-sector investment has risen, particularly since 2008, but private-business investment has not grown enough, while manufacturing’s share of the capital stock has declined substantially. Common explanations for low investment in manufacturing are examined in the light of empirical literature and are judged to have inadequate evidential support. Industrial policies derived from these views, such as maintaining low interest rates to promote investment, need to be based on stronger evidence. An argument is put forward for a system-based approach to research on the determinants of investment.