Effect Of Macroeconomic Variables Research Articles

Effect of Macroeconomic indicators on Financial Inclusion: A Study of EAGLES Economies

The effect of macroeconomic variables on financial inclusion in EAGLES economies is examined in this study. The Eagles economy, comprising nine nations—Brazil, China, India, Indonesia, South Korea, Mexico, Taiwan, and Turkey—is the foundation of the analysis. The data was examined from the other eight prefectures because Taiwan's data isn't available from 1992 to 2022. The findings demonstrate that the connection between financial inclusion and GDP is very weak—nearly zero—and linear. There is a very slight negative link between exchange rates and financial inclusion. Additionally, there is a very modest negative link between interest rates and financial inclusion. Interest rates and financial inclusion have a very weakly negative association. A very slight positive linear association is suggested between the inflation rate and financial inclusion. There is a slight positive link between financial inclusion and the unemployment rate.

Factors influencing investment into PropTech and FinTech – only new rules or a new game?

PurposeMany studies have analysed the impact of various variables on the ability of companies to raise capital. While most of these studies are sector-agnostic, literature on the effects of macroeconomic variables on sectors that established over the last 20 years like property technology and financial technology, is scarce. This study aims to identify macroeconomic factors that influence the ability of both sectors and is extended by real estate variables.Design/methodology/approachThe impact of macroeconomic and real estate related factors is analysed using multiple linear regression and quantile regression. The sample covers 338 observations for PropTech and 595 for FinTech across 18 European countries and 5 deal types between 2000–2001 with each observation representing the capital invested per year for each deal type and country.FindingsBesides confirming a significant impact of macroeconomic variables on the amount of capital invested, this study finds that additionally the real estate transaction volume positively impacts PropTech while the real estate yield-bond-gap negatively impacts FinTech.Practical implicationsFor PropTech and FinTech companies and their investors it is critical to understand the dynamic with mac-ro variables and also the real estate industry. The direct connection identified in this paper is critical for a holistic understanding of the effects of measurable real estate variables on capital investments into both sectors.Originality/valueThe analysis fills the gap in the literature between variables affecting investment into firms and effects of the real estate industry on the investment activity into PropTech and FinTech.

Effects of Macroeconomic Variables on the Performance of Mutual Funds: Evidence from Bangladesh Financial Market

Using multiple regression analysis in this research paper, this is examined that these macroeconomic variables (Money Supply-M2, Inflation Rates and Exchange Rates) have significant relationships with the performance of mutual funds (represented by monthly return based on NAV) in Bangladesh. According to this project paper, money supply M2 has negative relationship with the performance of mutual funds in the financial market of Bangladesh. Because, higher level of money supply in the market weaken the monetary value of taka which makes the market more vulnerable. And this vulnerable market leads a negative impact on the whole financial market as well as mutual fund industry. Interest rates have positive relationship with the performance of mutual funds in the financial market of Bangladesh because higher level of interest rate increases the tendency of savings in the ultimate consumers and they try to consume less and save more. This savings is going to be invested in the capital market as well as in mutual fund industry which leads the market to a better position for the fund managers. Inflation rates have negative relationship with the performance of mutual funds in the financial market of Bangladesh as the higher level of inflation make the price of commodities higher and the monetary price of the taka lower. This tendency of making the less value of money, most of the investors want to withdraw their investment from the market which leads a downturn in the financial market as well as in the mutual fund industry. At the end, exchange rates have positive relationship with the performance of mutual funds as the higher level of exchange rate makes the Bangladeshi taka more powerful in the international market.

Reliability of industrial policies in Nepal: An empirical investigation into the role of macroeconomic indicators

This study aims to analyze the reliability of Nepal’s industrial policies, focusing on the effects of macroeconomic variables on implementation and outcomes. This paper assesses Nepal’s industrial policies, emphasizing the need for improvements, export promotion, and human capital development while recognizing the importance of strategic planning and context-specific approaches for economic growth, stability, and development. The analytical and descriptive approaches have been applied to analyze the data by collecting secondary data sources that include official publications, which encompass 47 time series variables from 1974 to 2020. The findings provide mixed evidence for the economic impacts of liberalization, with exports and liberalization driving overall GDP growth. In contrast, other factors like economic openness, tourism, and their relationship with industrial GDP remain statistically insignificant. The paper indicates that remittances and investment have the most substantial impact on GDP, raising it by 1.86 and 1.21 units per unit increase, respectively. Exports have a moderate impact on industrial GDP (0.403 units). Export-oriented industries and tourism lack significant associations with either type of GDP. Liberalization significantly boosted both GDP and industrial GDP, with an increase of 179465.3 and 49595.62 units, respectively. Imports also jumped post-liberalization, driven by higher remittances as 1.215 units per unit increase. This study on industrial policies in developing economies, focusing on Nepal, adds valuable insights. The findings can ensure policymaking, boost economic growth, and strengthen Nepal’s industrial sector.

The Effect of Macroeconomic Variables and Geopolitical Risk Index on Defence Expenditures

Stratejik ve jeopolitik nedenlerle maruz kaldığı tehditlerin boyutu, Türkiye’nin savunma harcamalarını arttırarak sürdürmesine neden olmaktadır. Bu çalışmada Türkiye’nin savunma harcamalarının ülke ekonomisine etki eden makroekonomik değişkenlerden ve jeopolitik risk endeksinden etkilenip etkilenmediği araştırılmıştır. Makroekonomik göstergelerden; enflasyon, ekonomik büyüme, dış ticaret dengesi ve işsizlik değişkenleri seçilmiştir. Seçili göstergelerin ve jeopolitik risk endeksinin savunma harcamalarına etkisi ARDL sınır testi ve Toda-Yamamoto nedensellik analiziyle incelenmiştir. ARDL sınır testi sonuçları enflasyon ve işsizlikle savunma harcamaları arasında pozitif, dış ticaret dengesi ve ekonomik büyümeyle savunma harcamaları arasında negatif yönlü istatistiksel olarak anlamlı uzun dönemli bir ilişki olduğunu göstermektedir. Toda-Yamamoto nedensellik ilişkisi sonuçlarına göre işsizlik, ekonomik büyüme, enflasyon, dış ticaret dengesi ve jeopolitik risk endeksinden savunma harcamalarına doğru istatistiksel olarak anlamlı nedensellik ilişkisinin varlığı tespit edilmiştir.

Investigating the Effect of Gold Leading and Lagging Relative to the Stock and Housing Market, Considering the Effect of Macroeconomic Variables

Investigating the Effect of Gold Leading and Lagging Relative to the Stock and Housing Market, Considering the Effect of Macroeconomic Variables

Influence of macroeconomic variables on financing of mortgage products by commercial banks in Kenya

Various macroeconomic variables including gross domestic product (GDP), interest rate, inflation,money supply, and exchange rate, among others, have implication on financing of mortgage byfinancial institutions including Banks. In this paper, these variables are incorporated so as to analyze the influence of macroeconomic variables on mortgage financing by commercial banks. This studysought to determine the influence of macroeconomic variables on the financing of mortgage marketproducts among commercial bank in Kenya. The study surveyed 196 head of documentation, creditoperations, credit manager, legal, finance, relationship manager and head of retail sales from 28commercial banks that offer mortgage products. Data was collected by the use of structuredquestionnaire. Findings on the effect of macroeconomic variables on the level of mortgage productsfinancing showed that that there is a statistically significant correlation between financing of mortgageproducts and macroeconomic variables (r=.731, p<.0.000). In addition, results showed thatmacroeconomic variables explain the variations of 53.5% of the mortgage financing. Based on theresults, this paper concludes that macro-economic variables in terms of general price levels, grossdomestic product, exchange rate and interest rate have a statistically significant influence on financingof mortgage products. Results are also conclusive that the additional costs on property price discouragebuyers in acquiring property. The exchange rate applied at any given time affects financing ofmortgages. This study recommends that commercial banks should develop a system that constantlymonitors the macroeconomic environment to determine if the conditions are favorable for mortgageprovision. The system should be developed to monitor macroeconomic indicators such as income level,inflation, interest levels, and exchange rates. Importantly, commercial banks should set favorable downpayment, that clients can afford to payment at once and clear the balance in installments.

The Empirical Study of the Impact of Firm- and Country-level Factors on Debt Financing Decisions of ICT Firms

The capital structure has been extensively analysed in the empirical literature. Despite of the great contribution of the technological industry to the global economy, little research has been conducted regarding corporate finance of ICT firms. Moreover, the previous literature barely considers the effect of macroeconomic variables on financial decisions, focusing much more on internal determinants, such as cash flow, firm’s size or growth opportunities. The objective of this work is to reduce this gap by disentangling the reasons behind the financial decisions of technological firms. The sample included 1,510 public ICT firms from 23 countries over the period 2004 – 2019 (17,342 observations). The variables used in this study are obtained from S&P Capital IQ, World Development Indicators, Main Science and Technology Indicators from OECD, and FMI dataset. The two-step system generalized method of moments (GMM) was used as methodology. Consistent with the extant literature, more profitable and liquid ICT firms and those with an increased non-debt tax shields are less leveraged. However, the companies which present higher risk, measured as volatility of EBIT, increase their use of debt financing. Contrary to the findings of many other studies, the analysis of a firm’s size and tangible assets shows non-conclusive results. Regarding macroeconomic determinants, only economic growth and foreign direct investment inflows were found to generate a positive effect on financial decisions of ICT firms. The findings of this work can be used to design and develop policies, measures, and facilitate mechanisms for optimal management of the financing decisions of ICT firms.

Islamic Bank Productivity

This study aims to see the development of research Islamic Bank Productivity around the world published by journals with that theme. This study used a qualitative method with a bibliometric analysis approach. The data used is secondary data with the theme Islamic Bank Productivity derived from the Scopus database for 2005-2022. Then, the data was processed and analyzed using the VosViewer application with the aim of knowing the research development bibliometric map Islamic Bank Productivity in this world. The results of the study found that the authors, organizations, and countries with the most publications were dominated by Malaysia. Next, Islamic Bank Productivity based on the bibliometric keyword mapping, there are 4 clusters which are research lines in the existing literature, namely the determinants of Islamic bank productivity, the effect of capital on Islamic bank productivity, the effect of macroeconomic variables on Islamic bank productivity, and the effect of interest rates on Islamic bank productivity.

The Effects of Macroeconomic Variables and Ownership Structure on Banking Profitability in Turkey: Dynamic Panel Analysis

Makroekonomik değişkenlerin ve sermaye yapısının Türkiye’de banka kârlılığı üzerindeki etkisini sistem GMM yöntemiyle inceleyen bu çalışma hem küresel kriz hem de Covid-19 salgınının etkilerini de analize dahil ederek literatüre katkıda bulunmayı amaçlamaktadır. Sağlıklı ve iyi işleyen bir bankacılık sisteminin ekonomik faaliyetlerin devamı açısından son derece önemli bir rol oynadığı bilinmektedir. Ampirik bulgular 2002-2020 döneminde faiz dışı gelir, faaliyet giderleri ve döviz kurunun banka kârlılığı üzerinde anlamlı bir etkide bulunduğuna işaret etmektedir. Ayrıca, bazı tahminlerde enflasyonun kârlılığı negatif etkilediği, ekonomik büyümenin ise önemli olmadığı sonucuna varılmaktadır. Kamu, özel veya yabancı sermayeli olmanın banka kârlılığı üzerinde anlamlı bir etkisi bulunmamaktadır. Benzer şekilde, hem 2009 küresel finansal kriz hem de Covid-19 salgını için oluşturulan kukla değişkenler de istatistiksel olarak anlamlı değildir. Veri seti 2002-2009 ve 2010-2020 olarak ikiye bölündüğünde banka kârlılığını anlamlı biçimde etkileyen değişkenlerin farklılaştığı görülmektedir. Genel olarak makroekonomik istikrarın sağlanmasının banka kârlılığı bakımından önemli olduğu değerlendirilmektedir.

Portrait of equity risk premium in Indonesia capital market period 1990 – 2022

The Indonesia Stock Exchange has experienced high growth in its 32 years. The Composite Stock Price Index rose 1.012% in that period, or an average of 31.63% per year. This study analyzes the risk premium on the Indonesia Stock Exchange (IDX) in the last 32 years. In this study, we found the following facts. First, the risk premium at IDX is 2.24% per year if using annual data and 5.54% when using annualized monthly data. It seems that the risk premium in IDX is sensitive to the return calculation horizon used. Second, in the 1997-1998 economic and 2008 financial crises, the risk premium experienced a sharp decline but was followed by a sharp increase in the following months. Third, the macroeconomic variables of inflation and currency exchange rates significantly affect the risk premium, but the interest rate does not. The effect of macroeconomic variables on the risk premium is also sensitive to the horizon of the return calculation used. The results above are when using annual data. The three macroeconomic variables do not affect the risk premium when using monthly data.

The Effect of Macroeconomic Variables on Stock Exchange Market Performance: Iraq Stock Exchange Market as an Example erformance: Iraq Stock Exchange

The purpose of this study is to examine the impact of monthly time series data of macroeconomic variables from January 2005 to October 2021 on Iraqi’s stock market performance. The Iraqi Cen- tral Bank (ICB) was used to gather the information. This study used four macroeconomic factors as independent variables (money supply, interest rate, exchange rate and inflation rate), and market capitalization as a proxy for stock market performance as a dependent variable. All of the variables were stationary at a (level) according to the Augmented Dickey-Fuller (ADF) test. Money supply has a significant positive effect by nearly 0.50; interest rates have a significant negative effect 0.53; exchange rate has a significant positive effect by0.62; while the inflation rate has a negative but sta- tistically nonsignificant on stock market performance by 0.002, according to the Autoregressive Dis- tributed Lag (ARDL) regression results. Analysis of long-term macroeconomic variables and stock market performance shows that there is a long-term correlation. The true determinants of the Iraqi stock market’s success are money supply, exchange rate and interest rate, as all have a major impact.

Impact of Selected Macroeconomics Variables on Sensex

The macroeconomic variables are crucial for any change in the economy of a country. It is strongly believed that, fluctuations in macroeconomic variables will have impact on the returns of stock. Any changes among these variables have impact on the economy in various ways. The aim of the study was to determine the impact of selected economic variables namely Index of Industrial production (IIP), Consumer Price Index (CPI), Crude Oil Prices (CO), Gold Price (GP) on Sensex in India. The data from 1st January 2013 to December 2019 were used for this specific study. Linear regression analysis was carried out to understand the effect of macroeconomic variables on Sensex. A granger causality test was applied on the data to understand the possible impact of macroeconomic variables on stock prices. The findings of the study revealed that, out of the four variables; Gold price, CPI, Crude oil price is relatively more significant and likely to influence Indian stock market. The study reveals that , the presence of long run relation between the Sensex and select macroeconomic indicators and the Indian stock market is more driven by domestic macroeconomic factors.

The impact of the selected macroeconomic indicators’ volatility on the performance of South African JSE-listed companies: a pre-and post- Covid-19 study

The influence of macroeconomic variables on aspects of business and the country's economy has been a subject of robust discussion. This study was conducted to identify the effect of macroeconomic variables, namely inflation rate, economic growth, exchange rate and share price, on listed companies in South Africa. The goal was to study the long run and short run effects of macroeconomic volatility on company performance because of the world’s recent pandemic experience. To achieve this objective, the study applied the panel Autoregressive Distributed Lag (ARDL) model on annual panel data from 2010 to 2020 to analyse the short run and long run effects of macroeconomic variables on a company’s performance. The study results suggested a positive impact of economic growth, exchange rate and share price on asset returns, whilst a company's equity return is supported by economic growth and share price in the long run. The short run revealed that none of the independent variables has a sufficiently significant effect to influence a company's performance changes in the short run. Based on the findings, it was recommended that policymakers and economic authorities should introduce and implement strategies that favour and enhance the country's economic growth and stable exchange rate in order to improve company performance. Additionally, given that the company's short-run performance may highly depend on internal factors such as corporate governance, internal policies and business strategies, these decisions should be taken with precaution and a high level of professionalism.

A Study on the Effect of Macroeconomic Variables on Indian Mutual Funds

Indian financial markets have witnessed very high levels of volatility in recent months, with a sharp decline in the BSE-SENSEX from a peak of around 21,000 points to a nadir below 11,000 points, with as much as a 700-point fall on one single day. Indian economic conditions have also seemed to stagnate, with an overall slow-down in economic growth, along with the pressures of increasing crude oil prices and increasing inflation. In fact, the overall global scenario has also been quite bleak, especially with the onset of recession in the US. Mutual fund investments, which are generally considered to be less risky than other financial instruments such as shares and debentures, have also suffered in the general atmosphere of volatility.
 
 The present study investigates the effect of macroeconomic variables on mutual fund schemes, in terms of returns and volatility. The study uses the Granger causality test to analyze these effects. The results of these causality tests would identify the specific macroeconomic factors which affect the returns and volatility of particular mutual fund schemes, which, on the one hand, would enable fund managers to manage the risk profiles of their portfolios more effectively; and, on the other hand, would enable investors to understand the specific risk factors affecting their investments, so that they can take more informed investment decisions pertaining to mutual funds.
 
 The data to be used in the study were the weekly returns and volatilities of different macroeconomic variables, such as market returns (calculated from the BSE-SENSEX), USD/INR and EURO/INR exchange rates, interest rates (Mumbai Inter-Bank Offer rates), inflation rates, and crude oil prices, over the period October ‘06 - June ‘08. The weekly returns and volatilities of a sample of major mutual fund schemes over the same period would be considered for the analysis.

New Perspective to Measuring Interdependence among Stock, Oil and Currency Markets: A Canonical Correlation Analysis

With a view to explaining various seemingly-contrasting results often reported in financial linkages literature, the study investigates the possibility of the existence of more than one unique relationship among stock, oil and currency markets. It also quantified the impact of selected macroeconomic variables on these relationships. Three prominent markets of stock, oil and exchange rates were examined from the United States, United Kingdom and Nigeria. The model adopted was the canonical correlation specification. Canonical solution identified two significant unique association patterns each among US, UK and Nigerian markets, indicating that their linkages vary with time. We also observed that the effect of macroeconomic variables on the link among financial markets vary by country and data frequency. Overall, inflation rates played the most significant role in the linkages among financial markets. The study concluded that the previous results on interdependence among financial markets are not conflicting but rather complimentary as they evidenced the multiple patterns of association among markets.

Active Labour Market Policies and Macroeconomic Variables on Employment, Informal Employment and Income Effects: The case of Turkey

In this empirical research, the effects of macroeconomic variables and the incentive policies implemented in Turkey on the employment, informal employment and income have been investigated in Turkey. Electricity consumption (Economic Growth), the USD/TL exchange rate and inflation variables were used as the macroeconomic variables. The employment incentives that are implemented by the Laws Number 5510, 25510/16322, 26322, 6111, 14857 and 05746/15746 among the employment incentive policies implemented in Turkey were used as variables. The first lagged values of employment incentives from the Laws No. 5510, 26322 and 6111 significantly affected informal employment. The first lagged values of the variables of economic growth as the macroeconomic variable and Law No. 5510 have a positive effect on reducing informal employment. As a macro-economic variable, USD/TL exchange rate has a negative and relatively high efficiency.

Comparing the Effect of Intangible Assets and Macroeconomic Parameters on the Stock Prices in Firms Listed on the Stock Exchange of Iran, Saudi Arabia and Iraq

Comparing the Effect of Intangible Assets and Macroeconomic Parameters on the Stock Prices in Firms Listed on the Stock Exchange of Iran, Saudi Arabia and Iraq

Effect of Macroeconomic Variables on Financial Performance of Healthcare Manufacturing Firms in Nigeria

This study empirically investigated the effect of macroeconomic variables on financial performance in Nigeria healthcare sector. It spanned for the period of 2008-2018 and utilized annual time series secondary data extracted from annual reports and financial statements of the selected firms. Ex-post facto research design was adopted while analytical techniques employed were descriptive statistics, fully modified ordinary least squares panel regression and Pearson correlation analysis. Findings revealed that changes in macroeconomic indices play significant roles on the financial position of Healthcare manufacturing firms in Nigeria. Particularly, result showed that exchange rate, interest rate, external debt and trade openness have negative effect while inflation rate exert positive influence to financial position of Healthcare manufacturing firms in Nigeria. Among the selected macroeconomic variables, the effects of exchange rate and inflation rate were significant. Implication of the result is that unstable macroeconomy is harmful to healthy growth of Healthcare manufacturing firms in Nigeria. The study therefore recommended among other things that exchange rate should be monitored while economic policy measures aimed at controlling exchange rate in Nigeria should be established. High rate of interest should also be regulated and set to a rate favourable to the growth of Healthcare manufacturing companies in Nigeria. Federal government of Nigeria should work towards reducing their level of borrowing from foreign countries and as well reduce volume of trade openness for overall performance of manufacturing sector in Nigeria.

Identifying Sovereign Risk Spillover Channels: A Spatial Econometric Approach

ABSTRACT We apply novel spatial econometric techniques to investigate spillovers in sovereign risk for 41 advanced and emerging economies during 2004–2019. We find that sovereign risk spillover channels that play major roles in various periods are different. Real linkages (trade, financial, and geography) and information channel both play major roles in spillover effects during the full sample period. During the financial crisis period, only business connections (trade and financial) have an effect, while only the geographical distance channel did not have an effect during the European debt crisis period. We also assess the relative importance of the direct and indirect effects of macroeconomic variables. We observe that the long-term effects are larger than the short-term effects. Ultimately, our analysis emphasizes the importance of considering multiple channels when analyzing sovereign risk spillovers.