Journal•ISSN: 2231-1009
international journal of research in computer application & management
IJRCM JOURNALS OF INTERNATIONAL RESEARCH
About: international journal of research in computer application & management is an academic journal. The journal publishes majorly in the area(s): Empirical research & Service quality. Over the lifetime, 449 publications have been published receiving 1288 citations.
Topics: Empirical research, Service quality, Customer satisfaction, Granger causality, Cointegration
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54 citations
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TL;DR: In this article, the effects of interest rates, exchange rates and inflation rates on stock market performance of Pakistan by using annual time series data covering the 1991-2017 periods were investigated.
Abstract: This research paper empirically investigates the effects of interest rates, exchange rates and inflation rates on stock market performance of Pakistan by using annual time series data covering the 1991-2017 periods. The prime intention of this research was to inspect the long-run and short-run relationships between the KSE-100 index and macroeconomic variables by employing the econometric techniques of Autoregressive Distributed Lag (ARDL) bounds testing procedure to cointegration and the Error Correction Model (ECM), respectively. By applying the ARDL model, the empirical results revealed the fact that there was a negative and significant impact of interest rate on the market index, whereas; the exchange rate and the inflation rate have a positive impact on stock market volatility in the long-run. Furthermore, the ECM analysis pointed out that an estimated coefficient of the error correction term was significant with expected negative sign and showed that 46.53% deviation of the stock market index are corrected in the short-run per year. The study recommended that the monetary authorities should further reduce the bank rate up to the lowest rate in order to stimulate the stock market performance, which in turn; will boost the existing investment level and will encourage the new investment into the stock market. In addition, this policy will also ensure in the reduction of higher inflation rates. And the study found that the reduction in bank rate and stabilization in exchange rate is essential to local and foreign investors in the short-run.
36 citations
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TL;DR: In this paper, the empirical relationship between financial development and economic growth was examined and it was shown that credit granted by the financial system to the private sector has a negative influence on economic growth in developing and developed countries.
Abstract: This paper re-examines the empirical relationship between financial development and economic growth. The data cover the regressions according to the maximum of 110 countries and at least 10. It includes developing and developed countries. The study period extends from 1973 to 2012. Imports results obtained using the Generalized Method of Moments dynamic panel show that the variable that influence a significant and positive economic growth, whatever the sample is the variable that reflects the level of availability of the banking system. Contrary to that extent the credits granted by the financial system to the private sector, even if significant, has a negative influence on growth. Finally, the measure that reflects the financial deepening of the economy seems to depend positively on economic growth for developing countries and negatively for developed country.
34 citations