In economics, the investigation of association between government revenues (GR) and expenditures (GE) remains an essential discussion because its vital role in policy implication concerning Budget deficit. This paper aims to conduct a causal analysis these two fiscal variables (government revenue expenditure) using financial time-series data covering period from 1990 2019 Malaysia. The analyses...

Any research or policy analysis exercise in economics must be consistent with the timeseries properties of observed macroeconomic data. This paper discusses in detail the specification of a six-variable vector error-correction forecasting model. We test for cointegration among those variables: the CPI, the implicit price deflator for GDP, real money balances (M1), the federal funds rate, the yi...

Developing countries such as Indonesia have the ambition to carry out structural transformations in order increase their economic growth. The transformation of economy from low-productivity agriculture high-productivity industrialization is seen a prerequisite for achieving sustainable growth, but there are concerns about impact on environment, especially context carbon emissions and climate ch...

The main objective of this paper is to examine the effects interest rate on economic growth in Gambia over period 1993 2017. Vector E rror Correction Model (VECM) used check relationships between dependent variable (Gross Domestic Product) and independent variables (Real Effective Exchange Rate Real Interest Rate), both short-run long-run. Post estimation tests, including Lagrange Multiplier te...

The aims of the present study are developing a financial stability index (FSI) using banking indices to measure financial stability in Iran, and examining the relationship between financial stability and macroeconomic variables for policymaking. To these ends, we have employed principal-component analysis, out of sample forecasting, Autoregressive Integrated Moving Average (ARIMA) method, and V...

This study is aimed at examining the long run and short run relationships between both Islamic and conventional financial development with the economic growth in the Bahrain dual financial system. Using quarterly data (2000:1-2010:4) retrieved from Monthly Statistical Bulletin of Central bank of Bahrain (CBB) and International Financial Statistics (IFS) of International Monetary Funds (IMF), th...

Policymakers in less developed countries (LDCs) usually support competitive devaluations to improve the trade balance (TB). In this paper, we estimate the effects of appreciated and depreciated real exchange rates (RER) in the TB of Argentina and Brazil during the period, 1990–2010 using co-integration tests for non-stationary data and vector error correction models (VECM). The estimations conf...

Theoretical predictions and empirical evidence on the impact of foreign aid and fiscal policy on growth are mixed. This paper examines the effect of fiscal variables (government expenditure and revenue) and aid on growth using annual time series data for Kenya over the period 1964 – 2002. Multivariate cointegration (VAR) and vector error correction models (VECM) are estimated to establish both ...

of the Paper: Using time-series and panel data from 1986 to 2004, this paper examines the Granger causality relations between GDP, exports, and FDI among China, Korea, Taiwan, Hong Kong, Singapore, Malaysia, Philippines, and Thailand, the eight rapidly developing East and Southeast Asian economies. After reviewing the current literature and testing the properties of individual time-series data,...

Data on carbon emissions, industrial output growth, population growth and FDI inflows are used for Bangladesh, Nepal and Maldives over 1972 – 2008. Time series data on all variables are nonstationary in terms of both ADF and KPSS tests with different orders of integration. As a result, ARDL model and VECM are estimated. There are evidences of cointegrating relationship among the variables, long...