University of Peradeniya

About: University of Peradeniya is a education organization based out in Kandy, Sri Lanka. It is known for research contribution in the topics: Population & Poison control. The organization has 5970 authors who have published 7388 publications receiving 197002 citations.

Parametric and nonparametric Granger causality testing: Linkages between international stock markets

Abstract: This study investigates long-term linear and nonlinear causal linkages among eleven stock markets, six industrialized markets and five emerging markets of South-East Asia. We cover the period 1987–2006, taking into account the on-set of the Asian financial crisis of 1997. We first apply a test for the presence of general nonlinearity in vector time series. Substantial differences exist between the pre- and post-crisis period in terms of the total number of significant nonlinear relationships. We then examine both periods, using a new nonparametric test for Granger noncausality and the conventional parametric Granger noncausality test. One major finding is that the Asian stock markets have become more internationally integrated after the Asian financial crisis. An exception is the Sri Lankan market with almost no significant long-term linear and nonlinear causal linkages with other markets. To ensure that any causality is strictly nonlinear in nature, we also examine the nonlinear causal relationships of VAR filtered residuals and VAR filtered squared residuals for the post-crisis sample. We find quite a few remaining significant bi- and uni-directional causal nonlinear relationships in these series. Finally, after filtering the VAR-residuals with GARCH-BEKK models, we show that the nonparametric test statistics are substantially smaller in both magnitude and statistical significance than those before filtering. This indicates that nonlinear causality can, to a large extent, be explained by simple volatility effects.

Vulnerability of Coastal Aquifers Due to Nutrient Pollution from Agriculture: Kalpitiya, Sri Lanka

Abstract: This study focuses on spatial and temporal nutrient pollution of groundwater in the unconfined sandy aquifers of Kalpitiya peninsula, Sri Lanka, where agricultural activities are intense. The study covers two consecutive dry and rainy seasons during the period from 2008 to 2010. Nitrate is the dominant nutrient pollutant in groundwater. The values of Nitrate-N contents ranged from 0.60 to 212.40 mg/L in the dry seasons and 0.20–148.50 mg/L in rainy seasons. Phosphate in groundwater ranged from 0.20 to 5.70 mg/L in dry seasons and 0.04–10.35 mg/L with few exceptions in rainy seasons. About 50% of the studied water samples had Nitrate-N concentrations above WHO drinking water guideline values both in dry and rainy periods. These high concentrations were recorded from wells in agricultural lands. Although there is a slight decrease in the Nitrate-N concentrations at random in rainy seasons, an increasing trend of average concentrations became evident over the study period as a whole, probably indicating building up of Nitrate-N in groundwater in the vegetable growing areas. The spatial distribution of Nitrate-N too shows a good match of high Nitrate-N bearing zones with vegetable cultivated areas indicating intensive leaching from application of excessive chemical fertilizers. High Nitrate-N zones also showed fairly steady lateral distribution indicating slow lateral mobility of Nitrate-rich groundwater probably due to low hydraulic gradients. Low phosphate concentrations in both groundwater and surface soils either indicates their less use in the area or that the available phosphate is leached and removed from the aquifer water and (sandy) soil solutions and probably adsorbed in clayey deeper horizons. Low concentrations of major cations (especially K, Ca, and Na) indicate less impact on cation concentrations in groundwater by the fertilizer application or sea water intrusions/up-coning.