/library/oar/handle/123456789/67920 2025-12-26T01:58:12Z /library/oar/handle/123456789/75820 Title: Military expenditure and economic growth in China Authors: Agyapong Atuahene, Sampson; Yusheng, Kong; Bentum-Micah, Geoffrey; Garti, Evans; Baah, Alexender Abstract: Purpose: In this study, we contribute to the existing literature by examining the relationship between military spending changes and economic growth in China over the period 1995 to 2018 using Granger causality test. We would also explore short and long run relationship between GDP growth and military expenditure of China. Approach/Methodology/Design: Data used in this study are yearly data covering the period of 1995 to 2018 and the variables are Gross Domestic product (GDP) and Military Expenditure (ME). Data were collected from World Bank. GDP is at 2010 constant US prices and ME is expressed as a percentage of economic growth. All variables are transformed into the natural logarithmics to obtain growth effects. Findings: Using causality test, the causal relationship between the variables revealed that the alternative hypothesis should be accepted which is lagged GDP variable (proxy of economic growth) does not cause ME in our first VAR Granger causslity Wald test model. However, we discover and verified that there is one-way causality from economic growth to military spending, but no causality from military spending to economic growth is observed in this study. China’s positive economic growth can finance its military expenditure. Practical Implications: The study will contribute positively to the understanding of influence of GDP on military expenditure for emerging and developed ecconomies. Originality/value: This study innovates by using Cointegration, E-granger and Granger causality test to find out economic growth causing military expenditure in developing economies like China. 2020-01-01T00:00:00Z /library/oar/handle/123456789/75819 Title: Empirical analysis of monetary policy channels and the Nigerian economy Authors: Olubukola, Gbore O.; Olayemi, Simon-Oke O. Abstract: Purpose: The study empirically analyses monetary policy channels and the Nigerian economy, with a view to examine the effect of monetary policy channels on the economy as well as how it determines the causal relationship between various channels of monetary policy and macroeconomic aggregates of the economy. Design/Methodology/Approach: The VAR impulse-response and variance decomposition and Granger causality tests were considered as analytical techniques of the study with time series data spanning in the period of 1985-2018. Findings: The findings through the impulse-response and variance decomposition results reveal that interest rate channel is the most effective and dominant monetary policy channel in Nigeria, while the causality tests also confirm the existence of causal relationship between the monetary policy channels and the Nigerian economy with the traditional interest rate channel Granger causes the Gross Domestic Product and the consumer price index respectively but not causally related to the country’s reserves. Practical implication: Based on the findings, the study recommends that to improve the effectiveness of monetary policy the monetary authorities in Nigeria should take cognizance of channels of monetary policy that impacted positively on the economy particularly those found to be causality related to macroeconomic indicators of the economy. Originality/Value: The study provides the missing link by examining the various channels of monetary policy that affect the Nigerian Economy using selected macroeconomic aggregates and also determines not mere relationship but causal relationship between monetary policy channels and macroeconomic aggregates with expanded scope from 1985 to 2018. This makes the study unique from others considered in the literature. 2020-01-01T00:00:00Z /library/oar/handle/123456789/75818 Title: Agricultural financing and agricultural output growth in developing economies : any causal linkage in Nigeria? Authors: Orji, Anthony; Ogbuabor, Jonathan E.; Anthony-Orji, Onyinye I.; Nkechi Alisigwe, Jennifer Abstract: Purpose: In many developing countries, the agricultural sector has been seen as a major sector that should drive economic development and industrialization because of its importance in the provision of food for the increasing population, the supply of raw material to the growing industrial sector, generation of foreign exchange earnings, creation of employment opportunities, and provision of market for the product of the industrial sector. This study therefore investigates the causal linkage between agricultural financing and agricultural output growth in Nigeria. Design/Methodology/Approach: The data were mainly sourced from Central Bank of Nigeria statistical bulletins and World Bank Economic Indicators and the study adopted the Pairwise Granger Causality test. Findings: The result showed that there was no causal linkage between agricultural financing and agricultural output growth within the period under review. Practical Implications: With these findings it is therefore imperative for Nigeria to take more careful look into why agricultural financing has not made significant impact on agricultural output growth. There should exist massive education and enlightenment of farmers to know the different sources of agricultural financing available. When such funds are accessed, it should be properly monitored to ensure efficient utilization in order to increase agricultural output. Originality/Value: The study adds to literature on agricultural financing in Nigeria and it has serious implications for agricultural output growth and other areas of the economy. The findings of this study is novel and it is a pointer to the government to more proactive in ensuring that the agricultural sector is well financed and monitored in order to increase agricultural productivity. 2020-01-01T00:00:00Z /library/oar/handle/123456789/75817 Title: Causality between exchange rate and stock prices : evidence from ASEAN-5 countries Authors: Reza, Faizal; Ruliana, Titin; Nazarudin Latif, Imam; Nurqamarani, Adisthy Shabrina Abstract: Purpose: The primary aim of this study is to explain the causality between exchange rate and stock prices, particulary in ASEAN-5 countries. The research also aims to complement previous researches discussing the relationship between exchange rate and stock prices. Design/Methodology/Approach: This research employs secondary data from 5 ASEAN countries, Malaysia, Indonesia, Singapore, Thailand, and the Philippines. The data include stock prices and daily exchange rates in the period 2010-2018. The research uses time series analysis through several procedures such as stationarity test and cointegration test, then applies Bivariate Vector Autoreggresive (BVAR) towards the data to identify whether they support traditional approach or portfolio balance aproach. This research also applies time series analysis to increase the accuracy of the findings. Findings: This research found that between the period 2010-2018, there were two countries within the ASEAN-5 which support the research hypothesis of portfolio balance approach, Singapore and Malaysia, whereas the rest did not support neither hypotheses, the traditional approach and the portfolio balance approach. Practical Implications: Among three of the ASEAN-5, Indonesia, Thailand, and the Philippines, it can be assumed that exchange rate is not the proper indicator for stock market condition in those countries as previously assumed by researchers. On the other hand, the result of the remaining two countries Malaysia and Singapore showed vibrant insight on the causality between their financial sector and exchange rate. Originality/Value: By this far, there has been numerous studies discussing the causality between exchange rate and stock market in emerging markets or developed countries, however, there are only few studies which compare countries in ASEAN-5 using two indicators. 2020-01-01T00:00:00Z