The Dynamics of the Relationship between Stock Market Development and Economic Growth in Zambia

Stock market activities assume a crucial role in determining the level of economic activities in both developing and developed economies, by effectively facilitating capital for investment, providing a proper stage to incite best corporate practices that will bring about growing investment and hence leading to a rise in the growth rate of the economy. In this regard, this study sought to empirically examine the dynamic relationship between stock market development and economic growth in Zambia. Using vector autoregressive (VAR) model and Granger causality test on quarterly time series data spanning 1996Q1-2015Q4, the study discovered that there existed a unidirectional causality running from market capitalisation to economic growth. By including certain macroeconomic variables as control variables, it was rather found that fluctuations in economic growth have significant predictive impacts on the current market capitalisation. The study further found that with the exception of inflation, changes in the level of money supply and foreign direct investment have no impacts on economic growth in Zambia

The Dynamics of the Relationship between Stock Market Development and Economic Growth in Zambia

Stock market activities assume a crucial role in determining the level of economic activities in both developing and developed economies, by effectively facilitating capital for investment, providing a proper stage to incite best corporate practices that will bring about growing investment and hence leading to a rise in the growth rate of the economy. In this regard, this study sought to empirically examine the dynamic relationship between stock market development and economic growth in Zambia. Using vector autoregressive (VAR) model and Granger causality test on quarterly time series data spanning 1996Q1-2015Q4, the study discovered that there existed a unidirectional causality running from market capitalisation to economic growth. By including certain macroeconomic variables as control variables, it was rather found that fluctuations in economic growth have significant predictive impacts on the current market capitalisation. The study further found that with the exception of inflation, changes in the level of money supply and foreign direct investment have no impacts on economic growth in Zambia

Assessing the impact of macroeconomic variables on pension benefits in Ghana: A case of Social Security and National Insurance Trust

Background: One of the most pressing phases for all economic agents is post-retirement standard of living. Irrespective of the higher returns on pension contribution and varied pension reforms, there are possible factors that can render these pension benefits inadequate, which can affect the longevity of retirees. Studies conducted in other countries have concluded that inflation deteriorates the value of pension benefits. Aim: This study, thus, sought to assess the impact of some major economic indicators in the Ghanaian environment on pension benefits. Setting: This study was carried out in Ghana by obtaining quarterly data frequencies on pension benefits and economic indicators spanning the period 2000Q1 to 2014Q4. Method: The Auto-regressive Distributed Lag Model was utilised to examine the long run and short run dynamics of some major economic indicators and pension benefits. Results: The empirical evidence indicated that inflation deteriorates total pension benefits. Increasing monetary policy rate and depreciation of the domestic currency should be an issue to contend with only in the short run rather than in the long run. The study also found the prominence of the implementation of the National Pension Reform in 2008. Conclusion: The study concluded that if policy makers target the reduction in the monetary policy rate and the appreciation of the domestic currency in an effort to stabilise the value of total pension benefits in the long run, it would not be effective in the long run because of their insignificant nature. Policy makers should rather target inflation as the prime tool for stabilising the standard of living of retirees in the long run

Research on Factors Influencing the Grain Production in Pakistan: An ARDL Approach

Ensuring food security is an important for economic development and social stability. Pakistan’s economy is primarily dominated by agriculture sector. This paper employed the ARDL approach to cointegration in order to investigate the short and long-run determinants of grain crops productivity in Pakistan over the period 1978 to 2016. The results of ARDL bound test showed that the value of computed F-statistic exceeded the upper bound value, which means the equations were statistically significant at 5%. Further, empirical results of long-run and short-run revealed that area under grain crops, improved seed, fertilizer, and availability of water have a positive and significant effect on grain crops production in Pakistan. The estimated equation remains stable over the period of 1978 to 2016 as shown by stability tests. Currently, in Pakistan, small-scale farmers are unable to purchase farm machineries such as a tractor, tube -well and other inputs due to high prices. Therefore our study recommended that government should give subsidy to farmers on main agricultural inputs for improvement of grain crops production

Research on Factors Influencing the Grain Production in Pakistan: An ARDL Approach

Ensuring food security is an important for economic development and social stability. Pakistan’s economy is primarily dominated by agriculture sector. This paper employed the ARDL approach to cointegration in order to investigate the short and long-run determinants of grain crops productivity in Pakistan over the period 1978 to 2016. The results of ARDL bound test showed that the value of computed F-statistic exceeded the upper bound value, which means the equations were statistically significant at 5%. Further, empirical results of long-run and short-run revealed that area under grain crops, improved seed, fertilizer, and availability of water have a positive and significant effect on grain crops production in Pakistan. The estimated equation remains stable over the period of 1978 to 2016 as shown by stability tests. Currently, in Pakistan, small-scale farmers are unable to purchase farm machineries such as a tractor, tube -well and other inputs due to high prices. Therefore our study recommended that government should give subsidy to farmers on main agricultural inputs for improvement of grain crops production