Real Sector Performance Research Articles

Determinants of real estate sector performance in Morocco: to promote sustainable urban development

This study aims at analyzing the determining factors of the performance of the real estate sector in Morocco for the promotion of sustainable urban development, through a qualitative study based on a semi-directive interview conducted with twelve companies of the real estate sector in the region of Rabat-Salé-Kénitra. These companies belong to the three (3) segments of the market: the Economic, the Middle Standing and the High Standing and operate in the different cities of the region namely: Rabat, Salé, Kenitra, Skhirat and Temara. The objective is to identify the endogenous and exogenous performance factors that explain the success of some real estate companies that have been able to resist and adapt to an environment and a market in perpetual change and not so favorable.

Monetary policy transmission channels and the performance of the real sectors in selected sub-Saharan African countries: a system-GMM approach

This study investigated the impact of monetary policy channels on the real sector performance in selected sub-Saharan African countries. This study covers the period 1990 to 2020. The broad objective of the study was to examine the impact of monetary policy transmission channels on the real sectors of selected sub-Saharan African countries within the period, 1990–2020. Using the system generalized method of moments (sys-GMMs) amidst other pre-estimation and post-estimation tests, it was discovered that credit and exchange rate channels positively drove agricultural productivity, while interest rate channel exerted a negatively significant influence. Conversely, credit and exchange rate channels were found to negatively affect manufacturing, while interest rate channels had no significant impact on the manufacturing sector. Given the overwhelming impact of monetary policy channels on both the agricultural and manufacturing sectors of the SSA economies, it is recommended that effective monetary policy framework be put in place to continually create positive transmission effect on the real and productive sectors of the economy.

Recapitalisation and Real Sector Performance in Nigeria: An Ardl Analysis of the Service Sector

The purpose of this study is to investigate the impact of banking sector reforms on the overall performance of real sectors in Nigeria, with a particular emphasis on how such changes will affect the service sector. The statistical bulletin, annual report, and statement of accounts of the Central Bank of Nigeria (CBN) were the sources of the aggregate time series data that were used in this study, which covered the period from 1981 to 2020. The ARDL technique was utilised in the analysis of the data. The recapitalization policy is positive and statistically significant both in the short run and in the long run, indicating that the Nigerian real sector did perform better after the introduction of the recapitalization policy in Nigeria; and the relationship between banking sector recapitalisation and real sector performance. Capital base of banks, credit to private sector, and mobilisation of savings all have a favourable effect on the performance of the service industry. Based on the findings of the analysis, the study concludes that the capital base of banks, credit to the private sector, and mobilisation of savings all have a favourable effect on the performance of the service industry. According to the findings of the study, it is recommended that credit be made continuously available in a financial market economy that is unregulated, as this has the potential to stimulate the outputs of the national real sector, which would ultimately lead to economic expansion and development in Nigeria.

Real Sectors` Performance as a Precursor to Economic Restructuring in Nigeria

This study focused on real sectors performance as a precursor to economic restructuring in Nigeria. There seemed to be an unbalanced transition of the Nigerian economy from agriculture to industrial and to services sector which failed to achieve a transformed economy. The individual real sectors` growth have been disproportionate. Sector-specific policies need to be implemented due to recent service sector led growth in the economy. To proceed, we analyzed individual real sector performance using real sectors time series data from 1981 to 2018 sourced from CBN statistical bulletin and WDI. The study utilized the following variables: growth rate of real GDP (GDPR), growth rate of services sector output (SEVR), growth rate of manufacturing sector output (MANR), growth rate of industrial sector output (INDR), growth rate of Agricultural sector output (AGCR), growth rate of trade openness (OPEN) and Real interest rate (INTR).The Autoregressive Distributed Lag bounds testing approach to cointegration was utilized for this study. Using the bounds test, the result from the ARDL model indicate that the variables for this study are cointegrated while the error correction term appeared significant and confirms that short-run disequilibria are corrected up to 100 percent annually. This shows that the real sectors are the backbone of the economy. The empirical results reveals that the real sector growth exert positive and significant impact on economic growth both in the short-run and the long-run. Unlike previous findings that structural change must follow a certain pattern, our result implies that economic transformation in Nigeria requires a holistic policy framework to address each specific sector. We therefore, recommend that government should implement policies that will promote inter-sectoral linkages to achieve simultaneous growth in the real sectors. Nigerian trade performance should be improved through economic diversification and further availability of funds to private sector at competitive interest rate in order to produce internationally competitive products.

Real exchange rate undervaluation, regional integration and services sector performance: evidence from the East African Community

We undertake to estimate the effects of real exchange rate misalignment and regional integration on the service sector performance in selected countries from East Africa during the period of 1991–2017. The main findings, based on the traditional Pooled Mean Group ARDL technique as well as the alternative panel Cross-Sectional Autoregressive distributed lag (CS-ARDL) approach render support for an undervaluation-led services sector performance as well as the importance of regional integration in the observed linkage. Additional evidence reveals that both the monetary policy and the fiscal policy are key channels via which currency undervaluation impacts on the services sector output. The existence of non-linearities in an inverted U-shaped curve is equally confirmed in the data, where small and moderate undervaluations spur service sector performance just as large undervaluations after some threshold hinder it. Exchange rate volatility is found detrimental to the services sector in the long run. Policies that would help promote the underlying catalysts of undervaluation, curtail exchange rate volatility as well as those that promote deeper regional integration should be strengthened. Likewise, undervaluation policies would yield optimal benefits to the services sector once they are accompanied by well-calculated monetary and fiscal policies.

Real sector performance amid financial globalization: The Nigeria growth prospects

Financial globalization has drawn so much attention and has been identified as the major cause of the global financial crisis. With clear evidence of financial globalization in Nigeria, agreement on the magnitude and net effect on the nation’s economic sectors has not received more research attention. This article aims to investigate how Nigeria's sectoral performances are impacted by financial globalization. The sectors of interest include Trade, Agriculture, Construction, Industrial and Service. Annual Time series data for the period, 1981-2019 was analysed using a Classical Linear Regression Method in an Error Correction Framework. Results established a strong significant association between financial globalization, construction and trade sectors. It indicates the insignificant consequences of financial globalization on the industrial, service, and agricultural sectors, respectively. The result further finds that terms of payment impact the agricultural sector, while terms of trade impact the industrial sector, respectively. The exchange rate is the only variable that shows a significant negative impact on the five selected sectors. The article suggests that government and monetary authorities concentrate on stabilizing the currency rate since doing so improves terms of trade, builds local capacity, and boosts sectoral performances.

AN ASSESSMENT OF THE IMPACT OF EXCHANGE RATE FLUCTUATIONS ON THE PERFORMANCE OF THE REAL ESTATE SECTOR IN ZIMBABWE

The investigation sought to assess the connection between the exchange rate fluctuations and property sector performance in Harare. Zimbabwe’s real estate sector is undergoing a dip in terms of sales and vacancy levels. The real estate sector in Harare has been growing at a very slow rate in recent years resulting in thousands of jobs and the viability of the whole economy being threatened. A pragmatist approach and descriptive research design was applied in the investigation. A stratified random sample of 171 respondents was used in the administration of survey questionnaires were used. Primary data was collected by using survey questionnaires while secondary data was obtained from past researches, journals, reports from the Real Estate Institute of Zimbabwe (REIZ) and other exiting literature. Data was analysed using the Statistical Package for Social Sciences (SPSS) version 20. The major findings of the study were that from the research overwhelmingly confirm to the hypothesis that exchange rate fluctuations had a negative impact on real estate sector performance in Zimbabwe and from the correlation tests done in the study, it was concluded that there was a strong negative correlation between exchange rate fluctuations and real estate sector performance. This implied that a stable exchange was key to the growth in real estate sector and was an imperative deliverable by the monetary authorities.

GLOBALIZATION AND REAL SECTOR PERFORMANCE IN NIGERIA

The need to provide a level playing field for national economies has necessitated the integration of the economies through cross flow of goods, services, technologies and capital. These goods and services are produced by key sectors of the economy which represents the real sector. Over the years, the competitiveness of the real sector in the international market has raised concerns on the link between globalization and real sector performance. Consequent upon this, this study examined the impact of globalization on real sector output in Nigeria for a 39 year time period spanning from 1981 to 2019. The time series datasets used in this study were adapted from the Central Bank of Nigeria’s Statistical bulletin. The Ordinary Least Squares and Error Correction Modeling were used as the main analytical tools. The Augmented Dickey Fuller unit root test showed that all the variables attained stationary after first difference. The Johansen cointegration test further showed that the series have long run equilibri um relationship at 5 percent level of significance. The result from the errorcorrection model confirms that about 38 percent of the short run shocks in real sector output is corrected annually. From the estimates, a positive and statistically significant relationship exists between real sector output and foreign direct investment. Trade openness also was significant in impacting real sector output positively while a negative and significant linkage was observed between exchange rate and real sector output in Nigeria. The study therefore concluded that openness to trade broadens real output growth. Based on the findings, the study recommends amongst others that in the quest to maximize the benefits from trade openness, the relevant authorities should ensure that the nation’s exports are competitive and meet international standards by leveraging on modern technol ogies and innovation. Also, favourable industrial policies and strong institutional framework should be set up by the government to attract the right foreign direct investments.

Investment, Deposit Interest Rates, and Real Sector Performance: A Case Study of Islamic Finance in Malaysia

This study aims to examine the influence of interest rates, GDP, consumption, and investment on Islamic finance in Malaysia. Also, it focuses on the causal relationship between the macroeconomic and humanistic approach in understanding the role of Muslim economics. Data were analyzed using the Vector Error Correction Model and the results showed that interest rates negatively affect the real sector. Therefore, the Islamic financial system with a zero or no interest-based interest rate tends to promote a social economy

STUDY OF ISLAMIC MONETARY POLICY LITERATURE: (Effectiveness of Real Sector Performance Strengthening)

The purpose of this article is to analyze how effective the Islamic monetary policy system is in maintaining or improving the performance of the real sector. And how Islamic monetary economic policy is able to maintain stability between the real sector and the monetary sector compared to the implementation of conventional monetary economic policy. The research design uses library research design (library study design). namely a research by studying, researching and reviewing relevant library materials. The data collection method used in this study is documentation, namely the method of data collection by reviewing various books (literature) that are relevant to the subject matter to be studied. With data analysis techniques using content analysis techniques, (Content Analysis) is research that is in-depth discussion of the contents of a written or printed information in the mass media. Which in the analysis it was found that Islamic monetary policy is effective in improving the performance of the real sector.

An econometric analysis of electricity consumption and real sector performance in Nigeria

PurposeThe purpose of this paper is to examine the extent at which electricity consumption (EC) has contributed to real sector performance, to identify energy-dependent sectors of the economy for appropriate sector-specific policy interventions and to avoid energy conservation policies that may retard the growth of the real sector and economic growth in general.Design/methodology/approachThis paper used time series data, covering the period between 1981 and 2015. Various time series econometric analyses such as unit root test for stationarity and vector autoregressive and vector error correction models were used to establish the long-run and short-run co-integration relationship among the variables.FindingsThis study finds that EC displays a little and insignificant impact on manufacturing sector output, as well as agriculture and service outputs. The empirical result from causality test suggests a unidirectional causality running from agriculture to EC, as well as service sector to EC, whereas bidirectional causality runs between EC and manufacturing sector. This study therefore recommends adequate power supply to the manufacturing sector, while energy efficiency policy and regulatory reform should address agriculture and service sectors.Originality/valueFew studies have examined the impact of EC on disaggregated gross domestic product. This research gap has strong policy implications on Nigerian economy as the output of real sector plays vital role in driving the economy. Given the pressing needs for Nigeria to boost real sector output and be among the world’s 20 largest economies by 2030, it becomes imperative for this sector-specific research to be conducted to ensure that sectoral purpose-driven energy interventions are formulated to address power supply challenges in the real sector.

Determinants of Dividends for Real Estate Sector in Jordan

This study focused on analyzing the internal and external determinants of dividends for an important sector in Jordan which is the real estate sector during 2014 - 2019. For that, dividends per share were considered as dependent variable. On the other hand, internal determinants were measured by current ratio, total assets turnover, fixed assets turnover, and working capital turnover. Also, external variables were measured by GDP growth rate, inflation consumer prices, and unemployment rate.
 
 After conducting the statistical analysis, there was an impact of working capital turnover on dividends per share at 1% significance level. The study inferred from that there was no impact of the rest of internal and external variables on the dividends per share.
 
 As a result from that, the study recommended real estate sector to focus on and analyze working capital turnover. Moreover, it recommended analyzing the changes in external and internal variables during the time to enhance the performance of real estate sector in Jordan.

Commercial Banks Credit and the Performance of Real Sector in Nigeria: 1990-2017

The study examined the arguments and counterarguments within the scientific discussion on commercial banks credit and the performance of real sector in Nigeria. The main objective of the study is to examine the effect of commercial banks credit on the performance of the real sector in Nigeria.Data was sourced from Central Bank of Nigeria Statistical Bulletin. A systematization literary approach for data analysis was Regression Analysis. Findings revealed that bank credit and bank lending rate does not have significant impact on real sector performance in Nigeria. It was showed that there was a positive and significant relationship between agricultural credit guarantee scheme fund and agricultural production in Nigeria. The study therefore recommends that banks should be directed to channel their credits towards the real sector to facilitate overall economic growth and development in Nigeria. It was recommended that there is the need policies that will favor the revamp of the agricultural sector in Nigeria should be given pride of place. Also, monetary authority through the Central Bank of Nigeria should create adequate policies and strategies towards deepening of the financial sector and reducing the cost of credit/loans so as to enhance productivity and consequently enhance the growth of the key sectors of economy such as manufacturing sector.

Exchange Rate Regimes and Real Sector Performance in Nigeria: A Disaggregated Approach

ors and that a long term relationship exists between exchange rate and the real sector output in Nigeria. The results also establish existence of a clear evidence of differential impact of exchange rate regimes on the dynamics of outputs of the five disaggregated real sectors in Nigeria. The study therefore recommends that the monetary authorities should re-appraise the existing exchange rate policies in Nigeria with the intention of strengthening the controls and interventions to make them more effective and impact positively on the real sector of the economy. The government should also design and develop a broad programme of stimulating domestic productions to increase exports, eliminate non-productive imports and create employment. There is also the need to put in place and implement proactive and harmonized macroeconomic policies that would attract foreign private investment, increase foreign exchange earnings, stimulate exchange rate stability, reduce poverty level and spur overall economic development .

Excange Rate Fluctuation and Real Sector Performance in Nigeria: A Disaggregated Analysis

The Nigerian real sector is facing serious challenges due to exchange rate volatility. All the past efforts of the Central Bank of Nigeria to make naira have high international competitiveness had not yielded much result. In view of this, this study investigates the relationship between exchange rate fluctuation and the performance of the real sector in Nigeria while looking at disaggregated components of agricultural, industrial, building and construction, wholesale and retail trade, and services with a scope spanning thirty-two years, covering the period from the commencement of SAP in 1986 up to 2017. The study adopts the modified Mundell-Fleming IS-LM framework using Autoregressive Distributed Lag (ARDL) technique. The bounds tests suggest that the variables of interest are bound together in the long run with the aggregate real output (the dependent variable). This same pattern exists between the sectoral outputs and their independent variables, with the exception of Agriculture Output. The study also reveals a long-term inverse and significant relationship between exchange rate and both aggregate output and the outputs of each of the five sectors of the Nigeria real economy. The study further establishes that the sectors of the economy responded heterogeneously to exchange rate change. However, the pattern of each sector’s response to exchange rate change is far from pure homogeneity, affirming the disparity in terms of size, magnitude. The major implication of the findings is that exchange rate strategies adopted by government could not spur the desired improvement in the performance of real sector in Nigeria. The study, therefore, recommends that the monetary authorities should re-assess, monitor, and enforce the existing exchange rate policies in Nigeria with a view to stimulating increased performance of the real sector of the economy. The government should also develop an extensive programme of development of domestic industries to stimulate exports, cut non-productive imports, and create employment. There is also the need to put in place and implement coordinated macroeconomic policies that would attract foreign private investment, reduce poverty level, and stimulate exchange rate stability.

Excange Rate Fluctuation and Real Sector Performance in Nigeria: A Disaggregated Analysis

Excange Rate Fluctuation and Real Sector Performance in Nigeria: A Disaggregated Analysis

A Comparative Analysis of Adjustment of Nigerian Selected Macro Economic Variables to Deregulated Exchange Rate System

This study is a comparative analysis of how Nigerian macro economic variables of Balance of Payment and Real Sector performance (surrogated by Real Gross Domestic Product) reacted to exchange rate deregulation in Nigeria. One of the reasons why countries deregulate their exchange rate is to avail themselves the benefits of international trade, and the international trade transaction of every nation is depicted in its balance of payment position. In order to ascertain the significance of Naira deregulated exchange rate on the selected variables, a pre and post deregulation analyses were carried out using Paired Sample T Test staring from 1960 to 1985 as pre deregulation period and 1986 to 2011 as post deregulation period. The result revealed that both Balance of Payment and Real Sector Performance reacted significantly to exchange rate deregulation. While the influence of deregulation of exchange rate on Balance of Payment was negative, it showed a positive influence on Real Sector performance. The researchers concluded that deregulation of exchange rate did not increase the Nigerian general export, but oil export only, which is also an indication that Nigerian domestic industries did not contribute significantly to the country’s export level. We recommend that the monetary authority can consider placing a crawling peg on Naira exchange rate level in order to regulate the level of currency depreciation; this will reduce the cost of production for the domestic industries as most of their raw materials are imported. Again the export ability of the Nigerian domestic industries can be enhanced by granting them export incentives such as free international packaging and external credit guarantee.

Exchange Rate Regimes and Real Sector Performance in Nigeria

Exchange rates and the choice of the exchange rate regime have critical influence on the real sector performance and the behaviour of several other macroeconomic variables, especially in a high import dependent economy like Nigeria. Exchange rate reforms put in place by the Nigerian monetary authorities have not put the economy on the path of macroeconomic stability, recovery and sustainable development. Arising from this problem, this study investigates the relationship between exchange rate and the performance of Nigeria’s real sector with emphasis on the agricultural, industrial, building and construction, wholesale and retail trade and service sectors over the period of 1961-2017. The study adopts the modified Mundell-Fleming IS-LM framework. Autoregressive Distributed Lag and pairwise Granger Causality techniques were used to examine the relationship between exchange rate regime and real sector output performance. The results of the study reveals a long-term inverse and significant relationship between exchange rate and aggregate real output in regulated exchange rate regime but a long-term direct and significant relationship in the guided deregulated regime. The study therefore recommends that the monetary authorities should re-assess and adequately monitor the existing exchange rate policies in Nigeria with a view to stimulating increased performance of the real sector of the economy. The exchange rate system adopted should be aligned with the overall macroeconomic policy structure and also takes into consideration the integrity of the institutional arrangements on which the country’s development and stability prospects depend. The government should also develop a broad programme of development of domestic industries in both rural and urban areas to enhance domestic production, exports, create employment and reduce poverty. There is also the need to implement coordinated macroeconomic policies that would attract foreign private investment, impact inflation positively and stimulate exchange rate stability.

Foreign Debt and Real Sector Performance in Nigeria

This study examines the impact of foreign debt on real sector performance in Nigeria from 1981 – 2018. The study adopted series of simple regression models using as proxies agriculture gross domestic product, industry gross domestic product, construction gross domestic product, trade gross domestic product and services gross domestic product as dependent variables for measuring real sector performance while foreign debt as the independent variable. Annual time series data was sourced from Central Bank of Nigeria statistical bulletin 2018. The models were estimated accordingly using econometric view (E-View) 7.0. The data analysis was carried out at 5% level of significance using t-calculated and t-tabulated values. The results of the study shows that agriculture gross domestic product, industry gross domestic product, construction gross domestic product, trade gross domestic product and services gross domestic product have positive relationship with foreign debt. It also shows that foreign debt contributes significantly to the real sector of Nigeria. The study recommends that foreign borrowing should only be for investment purposes to fill the gap left by insufficient domestic investment and savings.

Digital Economy: New Opportunities and Threats for the Development of the World Economy

The paper examines various approaches to the definition of the term «digital economy» in the scientific and business environment along with factors and forms of its development in different countries taking into account the specifics of the current stage of the Russian economy, which is a matter of particular importance in seeking new sources of the world economy growth. The subject of the research is opportunities and threats inherent in the process of digitalization of economies and their impact on the operation of international and national markets as well as the development of the world economy as a whole. The purpose of the paper was to analyze the practical experience in the formation and development of the digital economy in foreign countries and Russia and identify the changes it brings to the activities of state institutions and business structures, established rules of market exchange, the process of promotion and use of innovations. All the above made it possible to determine the country-level specifics of the digital economy evolution reveal the contradictory nature of its manifestations and justify the necessity for active participation of the state in stimulation and support of potentially promising digital innovations in various sectors of the economy. It is concluded that the level of the digital economy development depends on the real-sector performance, the maturity of markets, the state of the national economy. It is highlighted that the criteria for a comprehensive assessment of the results of the economy digitalization must be developed.