Impact Of Macroeconomic Factors Research Articles

Examining How Macroeconomic Variables Influence Regional Autonomy: An Examination of Local Taxing Power

The Indonesian Central Government has granted local governments greater autonomy and authority in resource management, a process called decentralization. The impact of macroeconomic factors on regional autonomy in Jambi Province following fiscal decentralization explores how decentralization empowers local governments to optimize local income. The Financial Relations Law (UU HKPD) underscores the importance of local taxing Power for local administrations. Methodologically, this study utilizes panel data regression to investigate the influence of macroeconomic variables on regional autonomy. The qualitative analysis method is also employed to formulate policy strategies for enhancing local taxing Power. Results reveal some macroeconomic variables have a significant effect on regional autonomy. These are some recommendations to strengthen regional autonomy in Jambi Province, such as the identification of leading sectors regarding income tax, enhancement of supervision and law enforcement, taxpayer education, improvement of public service quality, the establishment of tax collection task forces, and innovation in tax administration.

The Impact of Macroeconomic Factors on Banking Sector in Pakistan

The Impact of Macroeconomic Factors on Banking Sector in Pakistan

The Impact of Macroeconomic Factors on Nigerian-Naira Exchange Rate Fluctuations (1981-2021)

This study majorly considered establishing the relationship that existed among the Nigerian-Naira (NGN) Exchange Rate and External Reserve, Inflation Rate, GDP Growth, Public Debt, Unemployment Rate and Exports for the period, (1981-2021). Also, the macroeconomic variables that influenced the NGN exchange rate fluctuations were determined. Multiple linear regression and correlation analyses were employed in this study. Results showed that the significant variables that influenced the NGN exchange rate fluctuations were External Reserve, Public Debt and Unemployment Rate; and each of them had very strong significant positive relationships with NGN exchange rate fluctuations. It was equally revealed that about 97% of the total variations in the NGN exchange rate fluctuations, from 1981 to 2021, were accounted for by variations in External Reserve, Public Debt and Unemployment Rate; while about 3% of the total variations in the NGN exchange rate could be attributed to other macroeconomic factors outside the ones used in this study. It was concluded that External Reserve, Public Debt and Unemployment Rate were the most macroeconomic factors that influenced the Nigerian-Naira exchange rate fluctuations from 1981 to 2021.

Developing the Voluntary Pension Fund at Enterprises in Vietnam from the Perspective of Employers

The paper studies the factors affecting the development of the voluntary pension fund system at enterprises from the employers' perspective. Through a survey of 37 enterprises, the paper clarifies employers' awareness of the importance of voluntary pension funds, the need for enterprises' pension funds, and their willingness to invest in the voluntary retirement fund. The findings show that 78.83% of businessmen believe that developing a voluntary pension fund system is necessary because voluntary pension insurance is a way for employees to protect themselves and their families against risks. 100% of business owners want a voluntary pension fund based on an agreement between the enterprises and employees, while 60% of employers prefer the blended mechanism with government supervision and support. Regarding the level of investment in social insurance and other retirement regimes, 68% of enterprises spend less than 10% of total costs to implement the program; 30% of enterprises use from 10% to 20% of total costs to implement the program. Employers show their prudence when considering a voluntary pension fund at their enterprises. More than 60% of employers concern about the fund security, 24% considers the impact of macro economic factors on the fund performance.

Impact of Macroeconomic Factors on Bank Financial Performance: A Turkey and Kosovo Comparative Study

Impact of Macroeconomic Factors on Bank Financial Performance: A Turkey and Kosovo Comparative Study

Macroeconomic Factors of Stock Market Development (The Case of Saudi Arabia)

Most economists recognize that a healthy capital market can enhance economic growth. In 2016, Saudi Arabia launched Vision 2030, and the Financial Sector Development Program is part of the Vision. The program aims to achieve economic diversification, reduce oil dependence, and trigger economic growth. Capital market development has an integral part to play in achieving Vision 2030 goals. For this reason, it is essential to investigate the factors that could influence it. The literature on the impact of macroeconomic factors on the stock market development is inconclusive; thus, it is difficult to generalize the outcome of previous studies. This research investigates the macroeconomic and institutional determinants of stock market development in Saudi Arabia from 2008 to 2021 by using a multiple linear regression approach. Following previous research, our analysis explores the impact of several factors, including Global Trade Openness, Market Depth, Macroeconomic Stability, Control of Corruption, Income level, Private capital flows, Financial intermediary development, Economic Development, Domestic Savings and investment. Among the nine evaluated factors, only four were significant. We find that the determinants of stock market development in Saudi Arabia are Economic Development, Income level, Control of corruption, and Market Depth.

Impacts of macroeconomic factors on the real estate bubble in Vietnam's big cities with industrial zones

Impacts of macroeconomic factors on the real estate bubble in Vietnam's big cities with industrial zones

The Impact of Macroeconomic Factors on Current Account Deficit in ASEAN Countries

In most ASEAN nations, a deficit in the current account balance began in 2018, sparking concerns among these countries. The deficit in the current account has led to various disadvantages in ASEAN countries, harming the nation’s economic health. Therefore, this paper analyzes the macroeconomic factors influencing the current account deficit in selected ASEAN countries. Data from eight ASEAN countries were analyzed using a panel static approach. Findings reveal that exchange rate (ER), Term of trade (TOT) and interest rate (IR) are the main factors that influence the deterioration of current account balances. Meanwhile, money supply (MS), and oil price (OILP) showed insignificant relationships towards current account balances. As ER, IR and TOT influence the current account significantly, it is suggested that the authorities in ASEAN countries have policy reforms and macroeconomic adjustments accordingly to improve the current account deterioration.

The Impact of Macroeconomic Factors on Non-Performing Loans of Commercial Banks: An Empirical Study Based on 2022 Provincial-level Data in China

The level of macroeconomic development varies, resulting in different non-performing loan ratios for commercial banks. Based on the relevant data of macroeconomic indicators from 31 provinces and cities in China in 2022, this paper empirically studies the relationship between regional gross domestic product (GDP), average urban employment salaries, the proportion of the tertiary industry, per capita consumer expenditure, the number of recipients of unemployment insurance, and the number of recipients of old-age insurance, and the non-performing loan ratio using a multiple regression model. A general model is established and tested to determine the final model. The empirical research results indicate that the proportion of the tertiary industry and the number of recipients of unemployment insurance have a positive impact on non-performing loans, while average urban employment salaries, regional GDP, and the non-performing loan ratio have a negative impact. Finally, based on the conclusions drawn from this study, relevant policy recommendations are proposed to provide guidance for commercial banks in China to mitigate the risks of non-performing loans.

The Impact of Macroeconomic Factors on Bank Credit Risk

Credit risk has become one of the main risks faced by banks under the background of increasing loan demand. Meanwhile, bank credit risk may be affected by a number of factors, including the expansion rate of Gross Domestic Product (GDP), changes in interest rate, unemployment rate and even more. These macroeconomic factors are crucial in determining how credit risk for banks is shaped. This paper concludes the different impacts of different macroeconomic factors discussed in several papers on the risks of bank credit, and illustrates how changes in GDP growth rate and rate of interest affect credit risks. Through comprehensive literature review and empirical research, this paper finds that macro factors, including the expansion rate of GDP and the rate of interest, have considerable impacts on banks' credit risk. Bank credit risk will decrease as GDP growth rate increases; however the risk of bank credit will increase as interest rates rise. At the end, the paper provides several suggestions for the development of risk management strategies, including the monitoring of macroeconomic factors and the adjustment of credit policies under different economic situations. The research results are intended to help researchers in related fields understand current research findings and patterns of development in the research field, to give a theoretical foundation and backing for their investigations, and to offer important guiding significance for banks and relevant regulators to formulate risk management strategies.

Impact of Macroeconomic Factors on Selected Sectors of BSE

The year 1991 will forever remain a landmark year in the history of stock markets in India. The stock markets have become a yardstick for measuring the performance of an economy and the macro economic variables have become important indicators of the health of the economy. Here, an attempt has been made to study the relationship between selected external macroeconomic variables and different sectoral indices at Bombay Stock Exchange (BSE). For the purpose of study seven macroeconomic variables such as Index of Industrial Production, Consumer price Index, Call Money Rate, Dollar Price, Foreign Institutional Investment, Crude Oil Prices and Gold Price are used to study the impact of macroeconomic variables on Sectoral Indices at Bombay Stock Exchange (BSE) viz. Auto, Bankex, FMCG, Consumer Durable and Metal. The monthly statistical data for above mentioned variables have been used for five years covering the period from April 2014 to March 2019. It was observed that all variables show high correlation amongst themselves and Call Money Rate is the only variable that affects all the Indices.

THE IMPACT OF MACROECONOMIC FACTORS ON THE PERFORMANCE OF THE CONSTRUCTION SECTOR IN LITHUANIA

The construction sector is closely related to the economic situation in the country. The main products of this sector are residences, business structures. Demand for these products is highest when the economic situation in the country is good, but when the economy slows down, the demand for these products also falls. This is because when the economic situation is good the population has spare money, loans are cheaper and the risk of job loss is low. This leads to an increase in the rate of growth of residential construction, as there is more demand for this product. Similarly, businesses are expanding due to increased sales, higher demand, and the resulting increase in non-residential construction. Therefore, in order to maximize the performance of the Lithuanian construction sector, it is important to keep an eye on the macroeconomic environment and to understand when the economy offers opportunities and when it brings threats. To this end, the construction sector and the macroeconomic environment are analyzed, the theory of economic cycles and the impact of macroeconomic factors on the construction sector is analyzed, and an empirical study of the impact of macroeconomic factors on the construction sector is carried out. An analysis of the scientific literature on business cycles and the main macroeconomic factors that affect the performance of the construction sector. Economic cycles are closely linked to construction performance. The boom or peak phases of the economy provide opportunities for the construction sector, while the recession and crisis phases bring threats. Understanding potential threats or opportunities maximizes performance, and this understanding requires an analysis of macroeconomic factors. Therefore, the main macroeconomic factors to be taken into account when analyzing both the changes in economic cycles and the factors that directly affect the construction sector are identified. The main factors identified are: aggregate demand, employment levels, corporate profits, import levels, interest rates, gross domestic product. However, it is also very important to analyze the existence of a real estate bubble, especially in the construction sector. An empirical study has been carried out to analyze the relationship between the identified macroeconomic factors and the construction sector in Lithuania. For this purpose, the Eviews software is used to construct a correlation matrix, regression models, find the elasticity coefficient and forecast.

The Relationship between Macroeconomic Factors and Tourism Demand for OIC Countries

Objective – The current paper investigates the relationship between macroeconomic factors and tourism demand for OIC countries. Methodology – The current paper employed the panel quantile regression analysis to assess the relationship. Findings – It is demonstrated that the impact of macroeconomic factors on tourism receipts is heterogeneous depending on the levels of tourism spending in the OIC host countries. The exchange rate and income exhibit a positive relationship with tourism demand. Meanwhile, inflation presents a negative relationship towards tourism demand at the lower level of tourism demand yet is positively related to the higher level. On the other hand, trade openness is negatively related to tourism receipts in general, and the strength of the relationship decreases at a higher level of demand. Novelty – Compared to previous studies, the impact of the macroeconomic factors was assessed across different levels of tourism demand. Type of Paper: Empirical JEL Classification: L83, Z32, O10 Keywords: Tourism Demand; Macroeconomic Factors; OIC countries; Quantile Regression Reference to this paper should be made as follows: Pinjaman, S; Jemin, S; Ridzuan, A.R; Lada, S. (2023). The Relationship Between Macroeconomic Factors and Tourism Demand for OIC Countries, J. Bus. Econ. Review, 8(2), 60–68. https://doi.org/10.35609/jber.2023.8.2(2)

The Nexus between Macroeconomic Factors and Tourism Receipts for Oic Countries: Panel Quantile Regression Approach

The current paper investigates the relationship between macroeconomic factors and tourism receipts for OIC countries. Based on the panel quantile regression analysis conducted, it is demonstrated that the impact of macroeconomic factors on tourism receipts is heterogeneous depending on the levels of tourism spending towards the OIC host countries. The exchange rate and income exhibit a positive relationship with tourism receipts. Meanwhile, inflation presents a negative relationship towards tourism receipt at the lower level of tourism receipt yet positively related at the higher level of spending. On the other hand, trade openness is negatively related to tourism receipts in general and the strength of the relationship decreases at a higher level of spending. The current research believes that to develop the tourism sector, proper plans should be made including improving the infrastructure, tourism facility, travel safety, and ease of entry considering the positive impact of economic development and trade openness. Relevant strategies should also be made to attract tourists from countries with higher purchasing power and strong currency value since it implies to be important in explaining the movement of tourism receipt. Keywords: Tourism Demand, Macroeconomic Factors, OIC countrie

The impact of macroeconomic factors on the analysis and forecast of the company's cash flows in Russia market

This study discusses prediction of the future cash flows of company using knowledge about macroeconomic and microeconomic factors and showing the importance of such factors. In order to achieve this goal, the following tasks were set in the work: 1. to understand concept of cash flows and the macroeconomic factors that can influence them. 2. To form, using a practical example, the forecast of the organization of cash flows of an enterprise, using methods of forecasting cash flows on the basis of the company's balance sheet and income statement for 2014-2021. 3. Make a conclusion on results of analysis and justify the importance of chosen factors Scientific and methodological basis of research served the work of Russian and foreign scientists and specialists in financial management and financial forecasting. The information base of the conducted research was the data of the Russian and world fuel and energy statistics, materials of the global Internet; data of Rosneft oil company and different articles and handbooks. The work consists of 3 parts. The first part is devoted to the theoretical aspects of methods for predicting the cash flows of the enterprise. The second part shows the application of the identified methods on the example of the oil and gas company “Rosneft”. The 3rd part summarizes the results of analysis of “Rosneft

Impact of Macroeconomic Factors on Financial Performance of Commercial Banks in Indonesia

This study investigated the impact of macroeconomic factors on the financial performance of commercial banks in Indonesia. By analyzing a sample of Indonesian banks over a specified period, the research examines the relationships between bank profitability and key macroeconomic variables, such as interest rates, inflation, exchange rates, and economic growth. Employing literature review methodology, the study aimed to shed light on how these macroeconomic factors influence banks' financial performance and assess the implications for risk management, regulatory policies, and strategic decision-making. The study found that the findings of various empirical studies on the impact of macroeconomic factors on the financial performance of commercial banks highlight several key macroeconomic factors that significantly influence bank profitability and other financial performance indicators. These factors include interest rates, inflation, exchange rates, economic growth, and market competition. While the specific findings and magnitudes of the impacts may vary across different countries and regions, some common patterns and trends can be observed. Interest rates have been identified as a critical determinant of bank profitability. Studies have found that higher interest rates can negatively affect bank profitability, as they increase the cost of borrowing for banks, subsequently affecting their lending activities and overall profits. The study concludes that while the specific relationships and magnitudes of these impacts may vary across different countries and regions, understanding these interactions is essential for banks, regulators, and policymakers to make informed decisions and adopt effective strategies. Thus, commercial banks in Indonesia should closely monitor and manage their exposure to macroeconomic factors, such as interest rates, inflation, exchange rates, and economic growth, to maintain and improve their financial performance. Keywords: Macroeconomic factors interest rates, inflation, exchange rates, and economic growth

The Impact of Inflation and Unemployment on Income Inequality in Pakistan

Income Inequality is the main obstacle in eradicating poverty. This research calculates the estimated degree of income disparity in Pakistan through various techniques. It finds out the impact of macroeconomic factors like inflation, unemployment and GDP growth rate on the degree of income inequality using logit model on data from 1980 to 2020. Gini Index shows that income inequality is more for urban regions as compared to rural areas of Pakistan. Whereas among the provinces, Punjab is suffering the most from unfair distribution of income. The regression results show the significance of all selected variables toward income inequality in Pakistan. It shows that inflation and unemployment have negative impact on Gini index while GDP growth rate has a positive influence which is quite possible in a developing country like Pakistan lagging behind in industrialization and service provisions. The study helps in making certain policies to reduce income inequality.

The Impact of Macroeconomic Factors on Profitability of Commercial Bank in the UK

Due to the vast contribution of commercial banks to the economic development in UK, this study examined the effect of macroeconomic variables on profitability of Commercial Banks listed at the London Stock Exchange (LSE) for years 2015 to 2019. The objective was to determine the effect of macroeconomic factors on the profitability. Panel data for the 23 listed banks in the LSE was utilized. Panel data regression analysis with random effects was utilized on the data to examine the effects of these five macroeconomic variables which included: Gross Domestic Product (GDP), Real interest rate, Inflation rate, unemployment rate, and Exchange rate on Return on Asset (ROA) and Return on Equity (ROE) which proxies’ profitability. The study findings indicated that real GDP growth rate had negative significant effect on profitability of commercial banks as measured through Return on Assets (ROA) and Return on Equity (ROE). While rest of the macro-indicators do not have a significant impact on profitability measured by ROA and ROE. It is therefore indicating that internal factors are impacting the profitability of banks in the UK rather than external factors.

"The Impact of Macroeconomic Factors on the Change of Residential Prices" The case study of Albania

The housing market is a very important sector worldwide and occupies a significant part of their capital stock. Given that the economy is experiencing a difficult situation, because of the Covid-19 pandemic crisis, also based on the financial crisis of 2007-2008, their impact has been immediate in the change in house prices. Moreover, this paper will contain the investigation of some of the macroeconomic variables that affect housing prices in Albania. The study is built on econometric models, using bound test to understand what correlation relationship exists between GDP, inflation and mortgage rate and evaluating the "Autoregressive Distributive Lags" model in the short-term period, as well as looking at the perspective of a long-term period according to the "Vector Error Correction" (VEC) model. From the result obtained from E-views software, it is shown that depending on the time periods, the impact of these macro variables is different. If in the short term it seems that the impact of the mortgage rate is not a very substantial variable or inflation can have a negative impact, in long-terms is the opposite. To have a model that is as reliable and strong as possible, "battery" tests have also been analyzed to diagnose its constituent elements such as heteroskedasticity, autocorrelation, normality and the CUSUM / CUSUM square test for stability of the model. This paper applies to all areas, whose political implications can be found mainly for the bank, various investors or even policy makers, which may be the Bank of Albania, which should pursue policies to stimulate economic growth and show caution in the level of inflation created or setting the mortgage threshold.

Planning and implementation of public investment projects in the face of unstable macroeconomic conditions

Purpose – The aim of the article is to draw attention to possible limitations and potential difficulties related to the implementation of public investment projects in the face of crisis phenomena and in particular the possible impact of macroeconomic factors on public investments. Research method – During the research, the method of critical analysis of the literature as well as analytical and descriptive methods were used in relation to the source data obtained during the empirical research, which allowed determining the impact of changes in macroeconomic factors on the planning and implementation of public investments. Results – Theoretical and empirical studies prove that macroeconomic instability has a significant impact on the course of investment processes in the public sector. The increase in inflation and interest rates of central banks has become a major threat to development processes; it may limit investment activity and reduce the effectiveness of public spending. Originality / value / implications / recommendations – The article discusses the current issues of planning and implementing investments in the face of changes in macroeconomic factors in crisis conditions. The recognized instability of investment processes in the public sector requires a detailed analysis of the current conditions and the impact of potential threats on long‑term economic development. The research shows that there is a need for a thorough and extensive analysis of macroeconomic conditions and their potential influence on the conditions of implementation, including the financing of public investment projects in the future.