Like developed countries, developing countries have established stock markets in view of achieving their
economic growth. This study sought to investigate the impact of stock exchange market to the economic growth
in Tanzania over a period of 1998 - 1992. A simple regression model using the 1998-2012 annual data sets was
employed. The empirical findings show that the market size has a negative impact on economic growth, which
suggests that the stock market in Tanzania is still infant and thus does not have a significant impact on
economic growth. The findings also show that the market liquidity has a positive impact on the economic
growth, which suggests that that despite the size of the stock market, the market is very active.
This document discusses inflation and its impact on the Indian stock market. It begins with an abstract that outlines how the relationship between stock prices and inflation has been extensively researched. The document then discusses the objectives of studying the impact of inflation on various Indian stock indexes like BSE SENSEX, NSE NIFTY, NIFTY Bank, and BSE FMCG based on yearly data. It acknowledges those who helped with the research. The contents section provides an outline covering topics like the different types of inflation, its causes and effects, a comparison of inflation and GDP, the stock market, and analyses of various stock indexes in relation to inflation.
Devanayagam_Impact of Macroeconomic Variables on Global Stock MarketsDevanayagam N
The document presents a study analyzing the impact of macroeconomic variables on global stock market performance. It tests the hypothesis that GDP growth, inflation, and unemployment significantly impact stock market indices. Regression models show GDP growth and inflation have a significant, direct relationship with stock market changes. The study concludes macroeconomic factors robustly explain parts of stock market performance, allowing better understanding and guidance for investors.
This document examines the relationship between capital market development and economic growth in Nigeria from 2008 to 2018. It uses market capitalization, interest rate, and inflation rate as proxies for capital market development and GDP as the measure of economic growth. Multiple regression analysis is employed to analyze the data. The results suggest that the stock market has a positive but insignificant effect on economic growth in Nigeria. It is recommended that capital market regulators be more flexible to promote innovation without compromising investor protection. The government should also improve infrastructure to create a better business environment and boost productivity and economic activity.
This document summarizes several research papers on the relationship between capital markets and economic growth in various countries. The papers find mixed results. Some papers find a positive relationship between stock market development and economic growth in countries like India, while others find no significant or even a negative relationship in countries like Romania, Western Balkan nations, and Nigeria. Recommendations include encouraging more companies to access capital markets to increase market size and liquidity, and improving market regulation and transparency to boost investor confidence.
Nigeria’s potential growth and output gap application of different econometri...Alexander Decker
This document summarizes a research paper that estimates Nigeria's potential output and output gap using different econometric filtering methods, including the Hodrick-Prescott filter, Baxter-King filter, and Christiano-Fitzgerald filters. The methods yielded different but similar results over time. According to the analyses, Nigeria's economy was overheated from 2004 to 2005 but operated below capacity from 2008 to 2009. The paper also found a relationship between inflation and estimated output gaps in Nigeria. Estimating potential output and the output gap can help inform monetary policy decisions by providing insights into future price levels and economic projections.
Financial development, trade openness and economic growth evidence from sulta...Alexander Decker
This document summarizes a journal article that empirically investigates the relationship between financial development, trade openness, and economic growth in the Sultanate of Oman from 1972 to 2012. It finds evidence of cointegration between the three variables. Specifically, it finds unidirectional causality from economic growth to financial development, and from trade openness to the other two variables. Variance decomposition analyses show that trade openness shocks are an important source of variability for GDP and financial development in Oman.
Impact of macroeconomic variables on stock returnsMuhammad Mansoor
The document discusses the impact of macroeconomic factors on stock returns. It provides background information on financial markets, primary and secondary markets, and stock market returns. It then summarizes several empirical studies that have examined the relationship between macroeconomic variables like interest rates, inflation, GDP, exchange rates, and stock market returns in countries like Pakistan, Japan, Nigeria, and others. The studies found both positive and negative relationships between different macroeconomic factors and stock returns in various markets. The document aims to contribute to this area of research by examining the impact of macroeconomic variables on stock returns in the Pakistani stock market.
Abstract
The exchange rates are at the heart of international economic relations and are an integral part of the everyday landscape of economic agents. The Tunisia like the other country is faced with the problem of determination of the rate of exchange that will allow him to achieve the major balances internal and external. The objective of this research is to explain the rate of exchange to the assistance of a number of explanatory variables to enable managers of the economic policy to appreciate in the time their contribution to economic activity. It is clear from the results of this research that have a positive influence on the equilibrium exchange rate while the external capital and the budgetary deficit have a significant negative impact on the equilibrium exchange rate.
Key words:
Exchange rate, budget deficit, exchange term, monetary mass
This document discusses inflation and its impact on the Indian stock market. It begins with an abstract that outlines how the relationship between stock prices and inflation has been extensively researched. The document then discusses the objectives of studying the impact of inflation on various Indian stock indexes like BSE SENSEX, NSE NIFTY, NIFTY Bank, and BSE FMCG based on yearly data. It acknowledges those who helped with the research. The contents section provides an outline covering topics like the different types of inflation, its causes and effects, a comparison of inflation and GDP, the stock market, and analyses of various stock indexes in relation to inflation.
Devanayagam_Impact of Macroeconomic Variables on Global Stock MarketsDevanayagam N
The document presents a study analyzing the impact of macroeconomic variables on global stock market performance. It tests the hypothesis that GDP growth, inflation, and unemployment significantly impact stock market indices. Regression models show GDP growth and inflation have a significant, direct relationship with stock market changes. The study concludes macroeconomic factors robustly explain parts of stock market performance, allowing better understanding and guidance for investors.
This document examines the relationship between capital market development and economic growth in Nigeria from 2008 to 2018. It uses market capitalization, interest rate, and inflation rate as proxies for capital market development and GDP as the measure of economic growth. Multiple regression analysis is employed to analyze the data. The results suggest that the stock market has a positive but insignificant effect on economic growth in Nigeria. It is recommended that capital market regulators be more flexible to promote innovation without compromising investor protection. The government should also improve infrastructure to create a better business environment and boost productivity and economic activity.
This document summarizes several research papers on the relationship between capital markets and economic growth in various countries. The papers find mixed results. Some papers find a positive relationship between stock market development and economic growth in countries like India, while others find no significant or even a negative relationship in countries like Romania, Western Balkan nations, and Nigeria. Recommendations include encouraging more companies to access capital markets to increase market size and liquidity, and improving market regulation and transparency to boost investor confidence.
Nigeria’s potential growth and output gap application of different econometri...Alexander Decker
This document summarizes a research paper that estimates Nigeria's potential output and output gap using different econometric filtering methods, including the Hodrick-Prescott filter, Baxter-King filter, and Christiano-Fitzgerald filters. The methods yielded different but similar results over time. According to the analyses, Nigeria's economy was overheated from 2004 to 2005 but operated below capacity from 2008 to 2009. The paper also found a relationship between inflation and estimated output gaps in Nigeria. Estimating potential output and the output gap can help inform monetary policy decisions by providing insights into future price levels and economic projections.
Financial development, trade openness and economic growth evidence from sulta...Alexander Decker
This document summarizes a journal article that empirically investigates the relationship between financial development, trade openness, and economic growth in the Sultanate of Oman from 1972 to 2012. It finds evidence of cointegration between the three variables. Specifically, it finds unidirectional causality from economic growth to financial development, and from trade openness to the other two variables. Variance decomposition analyses show that trade openness shocks are an important source of variability for GDP and financial development in Oman.
Impact of macroeconomic variables on stock returnsMuhammad Mansoor
The document discusses the impact of macroeconomic factors on stock returns. It provides background information on financial markets, primary and secondary markets, and stock market returns. It then summarizes several empirical studies that have examined the relationship between macroeconomic variables like interest rates, inflation, GDP, exchange rates, and stock market returns in countries like Pakistan, Japan, Nigeria, and others. The studies found both positive and negative relationships between different macroeconomic factors and stock returns in various markets. The document aims to contribute to this area of research by examining the impact of macroeconomic variables on stock returns in the Pakistani stock market.
Abstract
The exchange rates are at the heart of international economic relations and are an integral part of the everyday landscape of economic agents. The Tunisia like the other country is faced with the problem of determination of the rate of exchange that will allow him to achieve the major balances internal and external. The objective of this research is to explain the rate of exchange to the assistance of a number of explanatory variables to enable managers of the economic policy to appreciate in the time their contribution to economic activity. It is clear from the results of this research that have a positive influence on the equilibrium exchange rate while the external capital and the budgetary deficit have a significant negative impact on the equilibrium exchange rate.
Key words:
Exchange rate, budget deficit, exchange term, monetary mass
EFFECTIVE MONETARY POLICY AS A RECIPE FOR MACROECONOMIC STABILITY IN NIGERIApaperpublications3
Abstract: The basic objective of this paper was to investigate effective monetary policy as a recipe for macroeconomic stability in Nigeria, using annual time series data from 1981 to 2014. The paper employs OLS methodology with all the BLUE assumption. The results show that considering the magnitude, 1% increase in RGDP (proxy for economic growth) is brought about by 0.86% increase in narrow money supply (M1), 0.63% increase in broad money supply (M2), 258% decrease in inflation rate (INFLARATE), 1276.3% increase in lending rate (LEDRATE), and 143.9% increase in gross fixed capital formation. This implies that an increase in lending rate and other related variables will lead to a significant increase in real GDP, proxy for economic growth in Nigeria. The estimated value of R2 (goodness of fit) of 0.67 or 67% shows that 67% systematic variation in Real GDP is caused by variation in narrow money supply, broad money supply, inflation rate, lending rate, and gross fixed capital formation. This indicates that indeed, monetary policy has an effect on macroeconomic stability in Nigeria. The study seems to suggest that concerted efforts should be made by the government to focus on increment in narrow and broad money supplies which will aid in the financing of the country’s monetary growth, balancing the price increase, stimulating increased spending, and further enhancing the country’s macroeconomic variables.
This document summarizes the key aspects of monetary policy in Bangladesh. It discusses how the central bank uses interest rates and money supply to influence inflation. However, monetary policy faces limitations in Bangladesh due to imperfect markets and the economy's reliance on imports. The transmission of interest rate changes is also weak as banks determine rates collusively. While price stability is ideal, monetary policy alone has limited impact on inflation in Bangladesh given global price influences and excess bank liquidity reducing the central bank's policy instruments.
This document provides background information on monetary policy. It defines monetary policy as how central banks manage money supply to promote economic goals. It discusses how central banks execute monetary policy independently of governments through tools like interest rates and reserve requirements. The objectives of monetary policy are maintaining price stability and economic growth. The document also outlines the process of monetary policy decision making in Bangladesh, which involves setting targets and using tools like open market operations and bank rates.
This document provides an overview of monetary policy and inflation in Pakistan. It discusses key topics such as:
1) The different stages and types of inflation including creeping, walking, running, and hyper inflation.
2) The causes of inflation including demand-pull and cost-push factors.
3) The objectives, instruments and how monetary policy differs from fiscal policy in Pakistan.
4) The instruments of monetary policy used by the State Bank of Pakistan to control inflation including bank rate, cash reserve ratio, open market operations, and others.
Forecasting real economic growth by using the information contents of financial asset prices is one of the main themes in financial studies in recent years. Based on the micro-level stock data from Shenzhen Stock Exchange Market, the paper constructs a cross-section volatility measure using sample stocks, investigates the impact of stock price volatility on economic growth, and forecasts economic growth with stock prices volatility of different firm size. The empirical results indicate that stock price volatility is a good indicator for forecasting economic growth. The results also show that volatility of both large and small firms can be useful in forecasting economic growth. In addition, volatility of small firms can better predict economic growth.
This document provides an overview of monetary policy in Bangladesh. It defines monetary policy and discusses its objectives, which include rapid economic growth, price stability, exchange rate stability, full employment, and equal income distribution. It also outlines the tools used by Bangladesh's central bank to implement monetary policy, including reserve requirements, open market operations, and interest rate controls. The document then summarizes Bangladesh's monetary policy in 2018 and analyzes the impact of expansionary monetary policy on GDP.
The effects of monetary policy on inflation in ghana.Alexander Decker
This document summarizes a study on the effects of monetary policy on inflation in Ghana. The study used annual data from 1985 to 2009 to estimate a model relating the interest rate, exchange rate, and money supply to inflation. The results showed a long-run positive relationship between money supply and inflation, and a negative relationship between interest rate and inflation, but a positive relationship between exchange rate and inflation. The study recommends that monetary policy alone should not be used to control inflation and that fiscal and other non-monetary measures are also needed.
Monetary policy aims to control the money supply and credit in an economy to achieve objectives like full employment, investment growth, price stability, and balanced trade. Central banks use quantitative tools like bank rates, open market operations, and reserve requirements as well as qualitative tools like margin requirements and moral persuasion to influence monetary conditions. Economic indicators provide statistical data on the current state of the economy and can be leading, coincident, or lagging based on whether they change before, with, or after the overall economy. Coincident indicators reflect present conditions while leading indicators predict future performance and lagging indicators trail overall economic changes.
The Impact of Monetary Policy on Economic Growth and Price Stability in Kenya...iosrjce
The government of Kenya’s economic blueprint dubbed ‘Kenya Vision 2030’ acknowledges the
importance of maintaining a stable macro-economic environment. Despite Kenya implementing monetary
policy aimed at achieving stable prices and fostering economic growth, the economy has been reporting low
economic growth and high rates of inflation. These implies there is still a point of disconnect between what
Central bank of Kenya Pursues and the outcome of the objectives. In this study, structural vector autoregresion
(SVAR) model is estimatedto trace the effects of monetary policy shocks on economic growth and prices in
Kenya. Three alternative monetary policy instruments were put into use i.e. broad money supply (M3), interbank
lending rate (ILR) and the real effective exchange rate (REER). The study found evidence that monetary policy
innovations carried out on the quantity-based nominal anchor (M3) has modest effects on economic growth and
prices with a very fast speed of adjustment. Innovations on the price-based nominal anchors (ILR and REER)
have relative and fleeting effects on real GDP. The study recommended that Central Bank of Kenya should
place more emphasis on the use of the quantity-based nominal anchor rather than the price-based nominal
anchor
Economic indicators provide information about economic performance and allow analysis of business cycles. Some key economic indicators mentioned in the document include GDP, fiscal deficit, Sensex stock index, CPI inflation index, HDI human development index, and balance of payments. GDP measures total economic output, fiscal deficit is the gap between government spending and revenues, Sensex tracks the Bombay stock exchange, CPI measures inflation, HDI assesses health, education and income, and balance of payments tracks international monetary transactions.
This document is a presentation on monetary policy in Bangladesh by Group 16. It begins with introductions of the group members. The presentation covers topics such as the definition of monetary policy, the tools and transmission mechanisms of monetary policy, impacts of monetary policy on inflation and capital markets, Bangladesh Bank's monetary policy stances and challenges to monetary policy in Bangladesh. The presentation provides an overview of key concepts in monetary policy as well as analysis of monetary policies implemented in Bangladesh.
The main purpose of this study is to investigate the validity of Marshall-Lerner condition and the existence of J curve for the Turkish economy. Because of transition to the floating exchange rate regime in 2001, the analyzing period has been chosen as 2003-2016 to use monthly data for the related variables. After conducting unit- root and cointegration tests, the estimated VECM results show that Marshall- Lerner condition holds for the Turkish case. On the other hand, estimated VECM produces impulse- response functions that prove the existence of J curve for the Turkish economy in the long run.
This research proposal examines the determinants of interest rates in Nepal's financial market. It will analyze the relationship between interest rates and several factors including budget deficits, inflation, unemployment, treasury rates, and GDP. The study will use secondary data from Nepalese commercial banks and descriptive, correlation, and regression statistical tools. It hypothesizes that budget deficits, inflation, and unemployment will have significant relationships with interest rates. If supported, the findings could help banking sectors and other financial institutions in Nepal.
Monetary policy aims to control money supply, interest rates, and achieve economic growth. The objectives of monetary policy are economic growth, full employment, price stability, neutrality of money, and exchange rate stability. Monetary policy tools include expansionary policy which increases money supply and lowers interest rates, and contractionary policy which decreases money supply and raises interest rates. Instruments of monetary policy include quantitative measures like open market operations and changes in reserve requirements, and qualitative measures like moral suasion and publicity.
Monetary policy aims to manage a country's money supply and interest rates to achieve goals like low inflation and full employment. The document discusses the objectives, tools, and transmission mechanisms of monetary policy. It also provides examples of monetary policy in Pakistan between 2000-2014, noting the SBP has used tools like adjusting policy rates and reserve requirements in response to economic conditions like inflation, growth, and balance of payments. The challenges facing Pakistan's monetary policy are also summarized.
Much of the population is totally misinformed on the issue of the exchange rate as an economic policy instrument. This is an issue that people think it's not important unless when they decide to travel abroad. People need to understand that the exchange rate is a key factor of a national development project given that it interferes favorably or unfavorably on the competitiveness of exports and expenditure on imports, in forward or reverse of the domestic industry, the rise or fall of inflation rates, the increase or decrease of the country's production costs and the rise or fall of international reserves, among other factors. A stable exchange rate can lead to a prolonged period of economic growth, while an unstable exchange rate is able to reverse any growth process as what is currently happening in Brazil.
Monetary policy aims to control inflation and stabilize prices in Nigeria. The study uses data from 1981-2008 to examine the impact of inflation and monetary policy on economic growth. The results show that while money supply is positively related to economic growth, inflation rate has no significant impact. This suggests that monetary policy alone cannot control inflation in Nigeria and should be supplemented with fiscal and other measures. The Central Bank of Nigeria needs a more transparent monetary policy to better manage expectations and address the inertia of inflation.
This document analyzes the relationship between inflation and economic growth in Bangladesh from 1980 to 2014. It finds that inflation has negatively impacted growth when inflation rates are very high, such as over 20%. However, moderate inflation rates between 3-8% appear correlated with higher economic growth of around 5-6%. The relationship between inflation and growth is non-linear, with inflation potentially stimulating growth up to a certain threshold, after which high inflation hinders growth. Understanding this relationship is important for Bangladesh's central bank in conducting monetary policy.
The document summarizes Bangladesh's monetary policy between 2011-2015. Key points include:
- The central bank (Bangladesh Bank) used both expansionary and restrictive monetary policies by increasing or decreasing interest rates, cash reserve ratios, and repo/reverse repo rates to balance inflation, growth, and strengthening the economy.
- Between 2011-2012, policies aimed to lower inflation and support growth. In 2013, an expansionary policy pursued growth while aiming to lower inflation to 7%. 2014 policies initially restricted money supply to control rising food prices.
- In 2015, policies focused on moderate inflation, unemployment reduction, inclusive growth, and increasing domestic lending through digital technology and lowering costs of funds for projects. Inflation
This document summarizes a research study on the impact of inflation on Nigeria's economic growth from 1981 to 2018. The study used an Auto Regressive Distributed Lag model and data from the Central Bank of Nigeria. The results showed that inflation had a negative and significant impact on economic growth, while exchange rate had a negative but insignificant impact. The study concluded that curbing inflation is important for Nigeria's economy. It recommended that monetary authorities reduce money supply through fiscal and monetary policies to lower inflation.
EFFECTIVE MONETARY POLICY AS A RECIPE FOR MACROECONOMIC STABILITY IN NIGERIApaperpublications3
Abstract: The basic objective of this paper was to investigate effective monetary policy as a recipe for macroeconomic stability in Nigeria, using annual time series data from 1981 to 2014. The paper employs OLS methodology with all the BLUE assumption. The results show that considering the magnitude, 1% increase in RGDP (proxy for economic growth) is brought about by 0.86% increase in narrow money supply (M1), 0.63% increase in broad money supply (M2), 258% decrease in inflation rate (INFLARATE), 1276.3% increase in lending rate (LEDRATE), and 143.9% increase in gross fixed capital formation. This implies that an increase in lending rate and other related variables will lead to a significant increase in real GDP, proxy for economic growth in Nigeria. The estimated value of R2 (goodness of fit) of 0.67 or 67% shows that 67% systematic variation in Real GDP is caused by variation in narrow money supply, broad money supply, inflation rate, lending rate, and gross fixed capital formation. This indicates that indeed, monetary policy has an effect on macroeconomic stability in Nigeria. The study seems to suggest that concerted efforts should be made by the government to focus on increment in narrow and broad money supplies which will aid in the financing of the country’s monetary growth, balancing the price increase, stimulating increased spending, and further enhancing the country’s macroeconomic variables.
This document summarizes the key aspects of monetary policy in Bangladesh. It discusses how the central bank uses interest rates and money supply to influence inflation. However, monetary policy faces limitations in Bangladesh due to imperfect markets and the economy's reliance on imports. The transmission of interest rate changes is also weak as banks determine rates collusively. While price stability is ideal, monetary policy alone has limited impact on inflation in Bangladesh given global price influences and excess bank liquidity reducing the central bank's policy instruments.
This document provides background information on monetary policy. It defines monetary policy as how central banks manage money supply to promote economic goals. It discusses how central banks execute monetary policy independently of governments through tools like interest rates and reserve requirements. The objectives of monetary policy are maintaining price stability and economic growth. The document also outlines the process of monetary policy decision making in Bangladesh, which involves setting targets and using tools like open market operations and bank rates.
This document provides an overview of monetary policy and inflation in Pakistan. It discusses key topics such as:
1) The different stages and types of inflation including creeping, walking, running, and hyper inflation.
2) The causes of inflation including demand-pull and cost-push factors.
3) The objectives, instruments and how monetary policy differs from fiscal policy in Pakistan.
4) The instruments of monetary policy used by the State Bank of Pakistan to control inflation including bank rate, cash reserve ratio, open market operations, and others.
Forecasting real economic growth by using the information contents of financial asset prices is one of the main themes in financial studies in recent years. Based on the micro-level stock data from Shenzhen Stock Exchange Market, the paper constructs a cross-section volatility measure using sample stocks, investigates the impact of stock price volatility on economic growth, and forecasts economic growth with stock prices volatility of different firm size. The empirical results indicate that stock price volatility is a good indicator for forecasting economic growth. The results also show that volatility of both large and small firms can be useful in forecasting economic growth. In addition, volatility of small firms can better predict economic growth.
This document provides an overview of monetary policy in Bangladesh. It defines monetary policy and discusses its objectives, which include rapid economic growth, price stability, exchange rate stability, full employment, and equal income distribution. It also outlines the tools used by Bangladesh's central bank to implement monetary policy, including reserve requirements, open market operations, and interest rate controls. The document then summarizes Bangladesh's monetary policy in 2018 and analyzes the impact of expansionary monetary policy on GDP.
The effects of monetary policy on inflation in ghana.Alexander Decker
This document summarizes a study on the effects of monetary policy on inflation in Ghana. The study used annual data from 1985 to 2009 to estimate a model relating the interest rate, exchange rate, and money supply to inflation. The results showed a long-run positive relationship between money supply and inflation, and a negative relationship between interest rate and inflation, but a positive relationship between exchange rate and inflation. The study recommends that monetary policy alone should not be used to control inflation and that fiscal and other non-monetary measures are also needed.
Monetary policy aims to control the money supply and credit in an economy to achieve objectives like full employment, investment growth, price stability, and balanced trade. Central banks use quantitative tools like bank rates, open market operations, and reserve requirements as well as qualitative tools like margin requirements and moral persuasion to influence monetary conditions. Economic indicators provide statistical data on the current state of the economy and can be leading, coincident, or lagging based on whether they change before, with, or after the overall economy. Coincident indicators reflect present conditions while leading indicators predict future performance and lagging indicators trail overall economic changes.
The Impact of Monetary Policy on Economic Growth and Price Stability in Kenya...iosrjce
The government of Kenya’s economic blueprint dubbed ‘Kenya Vision 2030’ acknowledges the
importance of maintaining a stable macro-economic environment. Despite Kenya implementing monetary
policy aimed at achieving stable prices and fostering economic growth, the economy has been reporting low
economic growth and high rates of inflation. These implies there is still a point of disconnect between what
Central bank of Kenya Pursues and the outcome of the objectives. In this study, structural vector autoregresion
(SVAR) model is estimatedto trace the effects of monetary policy shocks on economic growth and prices in
Kenya. Three alternative monetary policy instruments were put into use i.e. broad money supply (M3), interbank
lending rate (ILR) and the real effective exchange rate (REER). The study found evidence that monetary policy
innovations carried out on the quantity-based nominal anchor (M3) has modest effects on economic growth and
prices with a very fast speed of adjustment. Innovations on the price-based nominal anchors (ILR and REER)
have relative and fleeting effects on real GDP. The study recommended that Central Bank of Kenya should
place more emphasis on the use of the quantity-based nominal anchor rather than the price-based nominal
anchor
Economic indicators provide information about economic performance and allow analysis of business cycles. Some key economic indicators mentioned in the document include GDP, fiscal deficit, Sensex stock index, CPI inflation index, HDI human development index, and balance of payments. GDP measures total economic output, fiscal deficit is the gap between government spending and revenues, Sensex tracks the Bombay stock exchange, CPI measures inflation, HDI assesses health, education and income, and balance of payments tracks international monetary transactions.
This document is a presentation on monetary policy in Bangladesh by Group 16. It begins with introductions of the group members. The presentation covers topics such as the definition of monetary policy, the tools and transmission mechanisms of monetary policy, impacts of monetary policy on inflation and capital markets, Bangladesh Bank's monetary policy stances and challenges to monetary policy in Bangladesh. The presentation provides an overview of key concepts in monetary policy as well as analysis of monetary policies implemented in Bangladesh.
The main purpose of this study is to investigate the validity of Marshall-Lerner condition and the existence of J curve for the Turkish economy. Because of transition to the floating exchange rate regime in 2001, the analyzing period has been chosen as 2003-2016 to use monthly data for the related variables. After conducting unit- root and cointegration tests, the estimated VECM results show that Marshall- Lerner condition holds for the Turkish case. On the other hand, estimated VECM produces impulse- response functions that prove the existence of J curve for the Turkish economy in the long run.
This research proposal examines the determinants of interest rates in Nepal's financial market. It will analyze the relationship between interest rates and several factors including budget deficits, inflation, unemployment, treasury rates, and GDP. The study will use secondary data from Nepalese commercial banks and descriptive, correlation, and regression statistical tools. It hypothesizes that budget deficits, inflation, and unemployment will have significant relationships with interest rates. If supported, the findings could help banking sectors and other financial institutions in Nepal.
Monetary policy aims to control money supply, interest rates, and achieve economic growth. The objectives of monetary policy are economic growth, full employment, price stability, neutrality of money, and exchange rate stability. Monetary policy tools include expansionary policy which increases money supply and lowers interest rates, and contractionary policy which decreases money supply and raises interest rates. Instruments of monetary policy include quantitative measures like open market operations and changes in reserve requirements, and qualitative measures like moral suasion and publicity.
Monetary policy aims to manage a country's money supply and interest rates to achieve goals like low inflation and full employment. The document discusses the objectives, tools, and transmission mechanisms of monetary policy. It also provides examples of monetary policy in Pakistan between 2000-2014, noting the SBP has used tools like adjusting policy rates and reserve requirements in response to economic conditions like inflation, growth, and balance of payments. The challenges facing Pakistan's monetary policy are also summarized.
Much of the population is totally misinformed on the issue of the exchange rate as an economic policy instrument. This is an issue that people think it's not important unless when they decide to travel abroad. People need to understand that the exchange rate is a key factor of a national development project given that it interferes favorably or unfavorably on the competitiveness of exports and expenditure on imports, in forward or reverse of the domestic industry, the rise or fall of inflation rates, the increase or decrease of the country's production costs and the rise or fall of international reserves, among other factors. A stable exchange rate can lead to a prolonged period of economic growth, while an unstable exchange rate is able to reverse any growth process as what is currently happening in Brazil.
Monetary policy aims to control inflation and stabilize prices in Nigeria. The study uses data from 1981-2008 to examine the impact of inflation and monetary policy on economic growth. The results show that while money supply is positively related to economic growth, inflation rate has no significant impact. This suggests that monetary policy alone cannot control inflation in Nigeria and should be supplemented with fiscal and other measures. The Central Bank of Nigeria needs a more transparent monetary policy to better manage expectations and address the inertia of inflation.
This document analyzes the relationship between inflation and economic growth in Bangladesh from 1980 to 2014. It finds that inflation has negatively impacted growth when inflation rates are very high, such as over 20%. However, moderate inflation rates between 3-8% appear correlated with higher economic growth of around 5-6%. The relationship between inflation and growth is non-linear, with inflation potentially stimulating growth up to a certain threshold, after which high inflation hinders growth. Understanding this relationship is important for Bangladesh's central bank in conducting monetary policy.
The document summarizes Bangladesh's monetary policy between 2011-2015. Key points include:
- The central bank (Bangladesh Bank) used both expansionary and restrictive monetary policies by increasing or decreasing interest rates, cash reserve ratios, and repo/reverse repo rates to balance inflation, growth, and strengthening the economy.
- Between 2011-2012, policies aimed to lower inflation and support growth. In 2013, an expansionary policy pursued growth while aiming to lower inflation to 7%. 2014 policies initially restricted money supply to control rising food prices.
- In 2015, policies focused on moderate inflation, unemployment reduction, inclusive growth, and increasing domestic lending through digital technology and lowering costs of funds for projects. Inflation
This document summarizes a research study on the impact of inflation on Nigeria's economic growth from 1981 to 2018. The study used an Auto Regressive Distributed Lag model and data from the Central Bank of Nigeria. The results showed that inflation had a negative and significant impact on economic growth, while exchange rate had a negative but insignificant impact. The study concluded that curbing inflation is important for Nigeria's economy. It recommended that monetary authorities reduce money supply through fiscal and monetary policies to lower inflation.
International Journal of Humanities and Social Science Invention (IJHSSI)inventionjournals
International Journal of Humanities and Social Science Invention (IJHSSI) is an international journal intended for professionals and researchers in all fields of Humanities and Social Science. IJHSSI publishes research articles and reviews within the whole field Humanities and Social Science, new teaching methods, assessment, validation and the impact of new technologies and it will continue to provide information on the latest trends and developments in this ever-expanding subject. The publications of papers are selected through double peer reviewed to ensure originality, relevance, and readability. The articles published in our journal can be accessed online.
Do government expenditure and debt affect stock market development in nigeriaAlexander Decker
Government expenditure and debt levels can impact stock market development. This study examines the effect of government spending and debt on the Nigerian stock market from 1981-2012. It finds:
1) Government capital expenditure had a significant negative short-run and long-run effect on stock market transaction values.
2) Government recurrent spending, domestic debt, and external debt did not have statistically significant effects on transaction values in the short-run or long-run.
3) The study uses an error correction model and cointegration analysis to assess the short-run and long-run effects. It finds the variables are cointegrated, indicating a long-run equilibrium relationship between government spending/debt and stock market development in
Stock market and economic growth the nigerian experienceAlexander Decker
This document analyzes the relationship between the stock market and economic growth in Nigeria. It specifically examines the effects and causal relationship between market capitalization (a measure of stock market size) and gross domestic product (GDP, a measure of economic growth) in Nigeria from 1981 to 2008.
The study employs an error correction model and Granger causality tests to analyze the interaction between stock market and economic growth. The results show there is unidirectional causality from economic growth to the stock market in the short run, with the stock market having a negative effect on economic growth. However, in the long run the stock market has a positive effect on economic growth. The study concludes the Nigerian stock market can stimulate economic growth
This document summarizes a research study that investigated the level of awareness of Bhutan's stock market among the public and the challenges facing the Royal Securities Exchange of Bhutan (RSEBL). The study found that over half of the public is aware of RSEBL's existence but lacks knowledge about stock trading and its benefits. Respondents expressed interest in investing but lacked knowledge of investment options. Major challenges for RSEBL and brokers included lack of public and company participation, low trading frequency, and liquidity problems. The study suggests educating the public on stock market benefits and investing procedures and encouraging more company listings to boost the exchange.
Capital Market and Economic Growth in Nigeria 1981 - 2010 Samuel Udeji
This document provides an introduction and background to a study examining the relationship between capital markets and economic growth in Nigeria. It discusses Nigeria's various development plans and the importance of finance and capital markets for economic growth. The author notes there is debate around the impact of capital markets on growth. While some research finds a positive relationship, others find negative or no relationship. The document outlines the specific objectives and hypotheses that will guide the empirical analysis in later chapters. It also provides an overview of the methodology and organization of the upcoming study.
Does Economic Growth Affect Capital Market Development In Nigeria? 1985 – 2016AJHSSR Journal
The goal of this paper is to assess the impact of economic growth affects capital market
development in Nigeria using annualised data from 1986-2016. We employed that Johansen cointegration
technique to determine if our variables are cointegrated. The error correction model (ECM) was employed to
estimate our dynamic short and long-run model. Various diagnostic tests were also conducted to confirm the
validity of our results. The results indicate that there is a long-run relationship between economic growth and
capital market development. The baseline estimator further showed that economic growth has significant
positive influence on capital market development. We also found that inflation has significant negative impact
on the capital market while money supply was found to have insignificant effect on the dependent variable. The
error correction term showed evidence of slow speed of adjustment toward long-run equilibrium, with deviation
from equilibrium corrected at the speed of 2.3 percent on annual basis. We conclude that economic growth
indeed drives capital market development in Nigeria. And were recommend that policies aimed at facilitating
economic activities should be pursued by the monetary authorities, the government and policymakers to further
enhance the development of Nigerian capital market
Modeling the effect of capital market empirical evidence from nigeria.Alexander Decker
This study examines the relationship between capital market activities and economic growth in Nigeria from 2001 to 2010. The capital market variables of annual market capitalization and total volume of transactions were analyzed in relation to gross domestic product as a proxy for economic development. The findings revealed a positive but not statistically significant relationship between capital market activities and GDP. It is recommended that building investor confidence through transparency, fair trading, political stability, and adequate publicity of the capital market could make the impact of the capital market on the economy more significant.
This paper examined the impact of foreign exchange accessibility on the growth of manufacturing sector in Nigeria. The study relied on secondary time series annual data and analyzed the collected data by using inferential statistics. The estimation techniques include Ordinary Least Square (OLS) method, Augmented Dickey-Fuller (ADF) Unit Root test, Johansen Co-integration test and Autoregressive Distributed Lags (ARDL) model. The study revealed that there was an existence of both short run and long run relationships among the variables of interest. The findings of the study revealed that the supply of foreign exchange and by implication, its accessibility is critical to the growth of the manufacturing sector considering the positive relationship of the lags of foreign exchange supply. Similarly, the amount of foreign exchange unutilised by the manufacturing sector (FXUM) was positively and significantly related to the growth of manufacturing sector. In the light of the forgoing findings, it was concluded that the time to time behaviours of foreign exchange supply by the Central Bank of Nigeria, forex utilization by the manufacturing sector and exchange rate all put together had a significant impact on the growth of Nigerian manufacturing sector. Consequently, it was recommended that government should ensure optimal and consistent supply of foreign exchange to the manufacturing sector as this has been found to have positive effect on the growth of the sector in this study. In addition, government should improve on her monitoring activities of the amount and distribution of foreign exchange allocations to the manufacturing sector of the economy in order to ensure that they are utilised for productive purposes only and reduce the incidence of diversion to unproductive and illegitimate purposes.
The aim of this study is to assess the impact of stock market characteristics on African economic
growth. We perform a panel smooth threshold regression (PSTR) analysis developed by Gonzalez et al. (2005)
using two panels of African countries from 1990 to 2020 for the first panel and 2006 to 2020 for the second
panel. The findings indicate that there is a specific threshold above which the stock market has an impact on
economic growth, namely market size and asset turnover, both of which positively affect growth. Market
liquidity, on the other hand, has a negative impact on growth. Our main recommendations are to share market
liquidity between private investors and the government on the one hand, and to increase market liquidity on the
other
Capital Market and Economic Growth Nexus: Evidence from Nigeriaiosrjce
IOSR Journal of Business and Management (IOSR-JBM) is a double blind peer reviewed International Journal that provides rapid publication (within a month) of articles in all areas of business and managemant and its applications. The journal welcomes publications of high quality papers on theoretical developments and practical applications inbusiness and management. Original research papers, state-of-the-art reviews, and high quality technical notes are invited for publications
Effect of Stock Market Listing on Financial Performance of Companies Listed i...paperpublications3
Abstract: This study is on the effect of stock market listing on financial performance of companies listed in Nairobi Securities Exchange (NSE). The specific objectives of the study determining how the nature of business industry and size of companies affected their financial performance, how government policy effected through Capital Markets Authority (CMA) influenced financial performance of companies listed in NSE, how management of the companies listed in NSE affected their financial performance, and how availability of information influenced the financial performance of companies listed in NSE. The Population of the study as well as the target population was a census of all 61 listed companies at the Nairobi Securities Exchange (NSE) as at 31st December 2012. This study established that in general stock market listing affects different profitability ratios in different ways. Some improve as a result of stock market listing while others deteriorate.
Keywords: Nairobi Securities Exchange (NSE), Listing, Return on Assets (ROA), Return on Equity (ROE).
Title: Effect of Stock Market Listing on Financial Performance of Companies Listed in Nairobi Securities Exchange
Author: Wilbert Kiplangat Kurgat
ISSN 2349-7807
International Journal of Recent Research in Commerce Economics and Management (IJRRCEM)
Paper Publications
An empirical study on the relationship between stock market index and the nat...Alexander Decker
This document discusses a study that investigates the relationship between stock market development and economic growth in Jordan from 2000-2012. It uses various econometric models including unit root tests, Granger causality tests, and cointegration analysis. The results of the Granger causality tests indicate there is unidirectional causality from stock market development to economic growth. The study aims to examine the long-run and short-run dynamics between Jordan's stock market index and real GDP.
5.[34 42]effect of foreign direct investment and stock market development on ...Alexander Decker
This study investigates the impact of foreign direct investment (FDI) and stock market development on economic growth in Nigeria from 1980 to 2009. The study employs econometric techniques including unit root tests, cointegration, and error correction modeling. The results show that both FDI and lagged stock market development have a small but statistically significant positive effect on economic growth in Nigeria. Lagged exchange rates also have a positive impact on growth. These findings suggest that FDI, stock market development, and exchange rate appreciation can enhance economic growth in Nigeria.
11.effect of foreign direct investment and stock market development on econom...Alexander Decker
This study investigates the impact of foreign direct investment (FDI) and stock market development on economic growth in Nigeria from 1980 to 2009. The study employs econometric techniques including unit root tests, cointegration, and error correction modeling. The results show that both FDI and lagged stock market development have a small but statistically significant positive effect on economic growth in Nigeria. Lagged exchange rates also have a positive impact on growth. These findings suggest that FDI, stock market development, and exchange rate appreciation can enhance economic growth in Nigeria.
5.[34 42]effect of foreign direct investment and stock market development on ...Alexander Decker
This study investigates the impact of foreign direct investment (FDI) and stock market development on economic growth in Nigeria from 1980 to 2009. It finds that both FDI and lagged stock market development have a small but statistically significant positive effect on economic growth. The results support the argument that extractive FDI and stock market development enhance growth. However, both FDI and stock market development show cyclical movements over time. Lagged exchange rate appreciation is also found to positively impact growth in Nigeria. The study aims to fill a gap by examining the joint impact of FDI and stock market development on growth, which has not been the focus of prior research on Nigeria.
Stock market volatility and macroeconomic variables volatility in nigeria an ...Alexander Decker
This document summarizes a study that examines the relationship between stock market volatility and macroeconomic variable volatility in Nigeria from 1986 to 2010. The study uses an EGARCH model to estimate volatility and a LA-VAR Granger causality test to analyze the nexus between stock market volatility and macroeconomic variables. The results found evidence of a bi-causal relationship between stock market volatility and real GDP volatility, and no causal relationship between stock market volatility and interest rate or inflation rate volatility.
Traditional methods to measure volatility case study of selective developed ...Alexander Decker
This document analyzes stock market volatility across developed and emerging markets from 1997-2009 using traditional measures like standard deviation. Key findings include:
- Returns for all markets showed non-normality, with emerging markets exhibiting more non-normality and higher kurtosis, indicating more peaked return distributions.
- Volatility, as measured by standard deviation, was highest for Turkey, Brazil, and China - all emerging markets. However, some developed markets were found to be more volatile than some emerging markets, suggesting volatility is not unique to emerging markets.
- The analysis concludes volatility should be measured using other methods like extreme value analysis due to the heavy-tailed distributions found in emerging market returns. This could provide better guidance for
Similar to IMPACT OF STOCK EXCHANGE MARKET TO THE ECONOMIC GROWTH IN TANZANIA (20)
Efforts made in many countries to stop the COVID-19 pandemic include vaccinations. However,
public skepticism about vaccines is a pressing issue for health authorities. With the COVID-19 vaccine
available,
SARS-CoV-2, as the causative agent of COVID-19, has spread throughout the world after becoming
a pandemic in March 2020. In the midst of the ongoing COVID-19 pandemic, we are also faced with another
serious health problem
This paper discusses the construction and implementation of a system for the measurement of
electrical power parameters; amperage and voltage of the hybrid system photovoltaic solar-wind, to evaluate
the system parameters and performance. The basis of the development of the measuring apparatus is the use of
an Arduino Mega 2560 to provide the interface between the electrical circuits of the sensors and the dynamics
of the voltage-amperage as well as collect data in an analog format as well as development of functional
dependence relationships. The collected data is converted into digital format and stored it in an Excel format
through the "PLX-DAQ Spreadsheet" that connects the Arduino and the PC for display and analysis of the
system parameters. The proposed technique for power measurements of AC and DC proved to be reliable and
can predict the power amperage and voltage within relative error of 1.63 % for AC and 4.16% for DC,
respectively.
The optimum speed required for mass-size reduction of shells to produce most sizes that are small
comparable with kernel sizes; coupled with retention of kernel wholeness in cracked palm nut mixture under
repeated impact was investigated. This is to enhance whole kernel separation by dry method, reduce maintenance
and production cost of palm kernel oil (PK0); and lower the risk of oil rancidity associated with split kernel
production and wet method of separation. A static nut cracker and centrifugal nut cracker were used in this study as
Test Rigs while sieves were used to grade cracked shells and whole kernels. The data generated were evaluated. A
model was developed for energy via speed required to retain kernels wholeness following repeated impact in the
crackers. Technical analysis revealed that the maximum allowable speed to retain kernel wholeness is 27.93 m/s;
the minimum allowable average speed to fragment cracked shells is 24.95 m/s. Further analysis showed that the
optimum speed and energy required for cracked nut mixture under repeated impact to have kernel wholeness
retention and production of small sizes of cracked shells relative to kernel sizes are 25.71 m/s and 0.4 J,
respectively.
This review was written to provide a comprehensive summary of the suggested etiologies of Chronic Kidney
Disease of Unknown Etiology (CKDu) in Sri Lanka. In this review, Chronic Kidney Disease (CKD) is explained
in detail and its known etiologies are discussed. CKDu is defined and its epidemiology is discussed, with the
compilation of statistic from over 15 research papers through the years 2000 to present.
This work contributes to the monitoring of water pollution of some selected Dams in Katsina
State, North western Nigeria by assessing the degree of heavy metal pollution in the Dams sediment samples.
The study was conducted in the year 2017 within some selected Dams in the State (Ajiwa, Zobe,
Sabke/Dannakola) that are beehives of fishing and Agricultural activities in Katsina State. Analysis for the
concentration of these heavy metals; Cr, Cd, Fe, Ni, Mn, Pb and Zn was conducted by the use of AAS (by
Atomic Absorption Spectrophotometry) method. Several indices were used to assess the metal contamination
levels in the sediment samples, namely; Geo-accumulation Index (Igeo), Enrichment Factor (EF),
Contamination Factor (CF), Degree of Contamination (Cd), Pollution Load Index (PLI) and Potential
Ecological Risk Index (PERI). The result of this study has shown that generally among the heavy metals
evaluated, the highest concentration was observed for Fe (range: 2.6718-4.2830 ppm), followed by Zn (range:
0.4265-0.7376 ppm), Cr (range: 0.1106-0.1836 ppm), Cd (range: 0.1333-0.1273 ppm) and Mn (range: 0.1136-
0.1271 ppm). While Pb has the lowest concentration (range: 0.0472-0.0598 ppm). For all the site sampled the
heavy metal Ni was below detection level (BDL). From the results of heavy metals I-geo values, according to
Muller’s classification, all the sediment samples from the selected dams were unpolluted (class 0). The result for
the enrichment factor has shown that for all the selected dam sediment samples the heavy metals show
deficiency to minimal enrichment. Also based on the contamination factors for all sediment samples the heavy
metal Cd has a CF values range of 0.5430-0.6665 (~1), indicating that the sediment samples are moderately
contaminated with Cd. In contrast, the rest of the heavy metals exhibit low contamination in general. The value
of PLI ranges from 0.2408 to 0.4935, indicating unpolluted to moderate pollution. The Eri values for all
samples are all < 40, presenting low ecological risk. The results suggest that the sediment samples from the
selected dams in Katsina state has low contamination by the heavy metals evaluated.
Using QR Decomposition to calculate the sum of squares of a model has a limitation that the number of rows,
which is also the number of observations or responses, has to be greater than the total number of parameters used in the
model. The main goal in the experimental design model, as a part of the Linear Model, is to analyze the estimable function
of the parameters used in the model. In order not to deal with generalized invers, partitioned design matrix may be used
instead. This partitioned design matrix method may be used to calculate the sum of squares of the models whenever the total
number of parameters is greater than the number of observations. It can also be used to find the degrees of freedom of each
source of variation components. This method is discussed in a Balanced Nested-Factorial Experimental Design.
Introduction:It has been proven twice that the Hambantota District has the highest life expectancy in male
population. This study focused to find and identify reasons for Hambantota District people to have high life
expectancy at birth.
Methodology: Research was carried out in both qualitative and quantitative phases in five MOH (Medical
Health Officer) divisions in HambantotaDistrict. Study focused on 3 age categories, 55-65 Years, 66-75 Years,
and above 76 Years. Main objectives and key information areas are Life Style and Social Behaviors, Food
Consumption and Diet, Familial Trait and Physical and Mental Health.
Findings: Majority of the male population have educated up to grade 5and most are engaged in the agriculture
while others engaged in fishery and self-employment etc. Almost everyone reachestheir workplaces by foot or by
bicycle. Many of them work less than six hours. They spend their free time with their family members and watch
TV. Most of them do not consume alcohol and smoke. Almost everyone take part in social activities. Majority eat
red rice for all three meals. Almost everyone eats fish every day. They have a high salt intake. Their parents and
ancestors have also have had a high life expectancy. Only a minority suffer from chronic illnesses. They all have
a good physical and mental health condition. They spend happy and relaxed lifestyle.
Conclusion: Healthy diet, low alcohols consumption and smoking, high iodine intake, physical activeness and
their social wellbeing effect for high life expectancy within the male population of selected five MOH divisions
in Hambantota District. They have a free and happy life. Genetics of these people also may contribute for high
life expectancy. Abundance of neem trees in this area also may effect on their high life expectancy.
A clay deposit in Chavakali of western Kenya was evaluated for its potential as refractory raw
material. The collected clay sample was crushed, sieved and the chemical composition determined in
percentage weight (wt %) of (SiO2, Al2O3, Fe2O3, etc) using Atomic Absorption Spectrophotometer (AAS). The
samples were moulded into rectangular shaped bricks of 40mm height, 40mm width and 80mm length, allowed
to dry and later fired up to a temperature of 10000C. Refractory properties like Compressive strength,
Hardness, Linear shrinkage on firing, Apparent porosity and Density were determined using standard
techniques. The result of chemical analysis indicated that the clay was composed of Silica (SiO2), 67.3%;
Alumina (Al2O3), 16.67%; Iron Oxide (Fe2O3), 3.87%; Calcium Oxide (CaO), 0.37%; Potassium Oxide (K2O),
2.30%; Sodium Oxide (Na2O), 1.39%; and other traces. The physical and mechanical tests show that the clay
has Cold Crushing Strength of 10.36MPa, Hardness of 40.080 GPa, Linear shrinkage of 6.17%, Apparent
Porosity of 32.71% and Bulk Density of 2.77g/cm3
. Chavakali clay can make better local refractory
Nihon University challenged world record of the human-powered aircraft flight based on the
regulation of Fédération Aérionautique Internationale in Kasumigaura Lake, Japan, 2014. The wing fell off in
midair immediately after take-off, the pilot landed to the lake for safety. So, the challenge failed. It guessed the
operational errors were correlated with the wing falling in midair, which had not happened in our experience.
The flight recording camera and the salvaged airplane were investigated. The fault tree analysis was conducted
for cause investigation. The wing falling was the result as the chain destruction starting from the coupling parts
being damaged in take-off. The defective take-off was caused by composite factors on only operational errors.
The risk that the ultralight airplane might disintegrate in midair by only operational error became apparent.
Due to the large-scale exploitation of mineral resources and the unreasonable human activities, the
geological disasters in Jiaozuo City have become increasingly prominent and the degree of harm increased. This
leds to a tremendous threat to human life and property safety. Jiaozuo City, the main types of geological
disasters, landslides, ground subsidence, debris flow and ground fissures. It has great significance to the
development of the city and the protection of people's life and property to explore the hidden dangers of
geological disasters and actively take preventive and control measures. The establishment of geological
hazard group measurement system of prevention and control to achieve the timely detection of geological
disasters, rapid early warning and effective avoidance.
Dangerous gas explosion accidents result in considerable amount of casualties and property damage.
Hence, an investigation on the generation of poisonous gases in gas explosions exerts important implications
for accident prevention and control and in the decision-making processes of fire rescue. Therefore, a gas
explosion piping test system is established in this paper. Experimental research on gas explosion is conducted by
selecting methane/air premixed gases with concentrations of 7%, 9%, 11%, 13%, and 15% in the gas explosive
range. This research aims to reveal the regularity of CO generation after gas explosion in pipelines.
Experimental results showed that when the gas concentration is small (< 9%), 1500–3000 ppm CO will be
produced. When the gas concentration is large (> 9%), the CO amount will reach 3000–40000 ppm. The
variation trend in CO concentration and the quantity of explosive gas are also obtained.
1) The document examines the influence of entry speed on water entry phenomena through experimental visualization of the flow field above the water surface. Entry speeds ranged from 0.2 to 1.5 km/s.
2) It was found that above a critical entry speed, the vertical velocity of the water splash tip was linearly proportional to its vertical location, and the ratio of initial splash velocity to entry speed was constant.
3) A shock wave was driven above the water surface even for subsonic entry speeds, and its propagation followed a scaling law for explosive shock waves where projectile kinetic energy replaced explosive energy.
Pingdingshan Coal Mine district is one of the six mining areas of Henan Province, which is a
large coal base in China. After 60 years of exploitation, it has brought great benefits, at the same time,
serious geological disasters have been occurred. It has seriously damaged the normal production of the
masses, life, restricting the development of Pingdingshan coal mine economy. In this paper, the
geological disasters such as ground collapse, ground fissures and ground subsidence in Pingdingshan coal
mine are analyzed, and the degree of geological disasters in the mining area is analyzed in combination
with the severely affected mining area. Finally, reasonable and feasible countermeasures have been put
forward.
Kelud volcano is located in East Java Province, Indonesia. According to Geochemical study of
Kelud Volcano, it could be divided into 3 periods which are Kelud I (older than 100 ky BP), Kelud II (40 – 100
ky BP), and Kelud III (younger than 40 ky BP). A specific petrogenesis of Kelud are dominatad by magma
mixing and fractional crystalization. New petrological data from Kelud volcano was taken through products of
the eruption in 1990 (Vulkanian type), 2007 (Lava plug forming) and 2014 (Plinian type). Petrographic study
on these rocks showed that reverse and oscilatory zoning on plagioclases, Shieve-like and corroded textures on
plagioclases and pyroxenes are common. However, normal zoning textures were also found on plagioclases and
pyroxenes. Whole rock study on these rocks showed all rocks were classified into Basalt to Andesite in
composition with calc-alkaline group. The study indicated that their magma origin derrived from slab with
fractional crystallization during in the magma reservoir, and magma mixing processes are dominant expecially
in magma pockets. Concequently, the magma origin and petrogenesis of Kelud magma after the 1966 eruption
are still the same as those of old magma of Kelud.
Black cotton soils are among a group of soils termed as problematic soils. These soils have
undesirable characteristics in relation to construction works and therefore need some form of improvement
when encountered in construction projects. Techniques for improvement of black cotton soils include
replacement, moisture control or adding a stabilizer. Cement and/or lime has been commonly used in soil
stabilization for ages. However, due to the associated cost, required quality control and the need to utilize waste
materials in construction, new stabilizing materials are emerging. This paper presents a study on application of
quarry dust for improving properties of black cotton soil in Mbeya region, Tanzania. The targeted improvement
was to achieve minimum acceptable characteristics for road subgrade as per Tanzania standards. It was
determined that 40% by weight of quarry dust added to the black cotton soil was able to improve the
characteristics by increasing CBR value from 3.8 to 15.7 and reducing PI from 32% to 15%. It will be worthy
studying the cost implication of the suggested improvement in relation to other techniques before application of
the study findings.
High intensity rain and morphometri in Padang city cause at Arau. Morphometri
geomorphologi that is related to wide of, river network, stream pattern and gradien of river. The form wide
of DAS will be by stream pattern and level.This will influence to the number of rain. Make an index to
closeness of stream depict closeness of river stream at one particular DAS. Speed of river stream influenced
by storey, level steepness of river. Steepness storey, level is comparison of difference height of river
downstream and upstream. Ever greater of steepness of river stream, excelsior speed of river stream that
way on the contrary. High to lower speed of river stream influence occurence of floods, more than anything
else if when influenced by debit big. By using rainfall from year 2005 to year 2015, and use Thiessen method
got a rainfall. Use the DEM IFSAR, analysed sofware ARGIS, and with from earth map, the result got DAS
in at condition of floods gristle and sedimentation. There are band evakuasi for resident which data in
floods area.
The chemical (extractives and lignin) content and histological property (microscopic structure)
of tissues of Ricinodendron heudelotii (Baill, Pierre ex Pax), an angiosperm, were investigated for its potential
as a fibrous raw material for pulp and paper production. Bolts of about 70 cm were cut from the felled trees at
three different merchantable height levels of 10%, 50%, and 90% to obtain: corewood, middlewood and
outerwood samples. The fiber characteristics of the selected trees viz: the fiber length, fibre diameter and lumen
diameter were measured while the cell wall thickness was derived from the measured fibre dimensions. The
average fiber length, cell wall thickness, and lumen width, were 1.40 mm, 4.6 µm, and 32.3 µm, respectively.
The extractive and lignin contents were determined. Klason lignin content was about 30%. Extractive content of
R. heudelotii ranged from 0.41 to 0.5%. Based on these findings R. heudelotii is suitable for pulp and paper
production.
The prolific Niger Delta Basin is a mature petroleum province. Therefore, further prospectivity in
the basin lies within deeper plays which are high pressure and high temperature (HPHT) targets. One of the
main characteristics of the Niger Delta is its unique diachronous tripartite stratigraphy. Its gross onshore and
shallow offshore lithostratigraphy consists of the deep-seated Akata Formation and is virtually exclusively
shale, the petroliferous paralic Agbada Formation in which sand/shale proportion systematically increases
upward, and at the top the Benin Formation composed almost exclusively of sand. This stratigraphic pattern is
not exactly replicated in the deep offshore part of the delta.
A low-carbon steel wire of AISI 1022 is used to easily fabricate into self-drilling tapping screws,
which are widely used for construction works. The majority of carbonitriding activity is performed to improve
the wear resistance without affecting the soft, tough interior of the screws in self-drilling operation. In this
study, Taguchi technique is used to obtain optimum carbonitriding conditions to improve the mechanical
properties of AISI 1022 self-drilling tapping screws. The carbonitriding qualities of self-drilling tapping screws
are affected by various factors, such as quenching temperature, carbonitriding time, atmosphere composition
(carbon potential and ammonia level), tempering temperature and tempering time. The quality characteristics of
carbonitrided tapping screws, such as case hardness and core hardness, are investigated, and so are their
process capabilities. It is experimentally revealed that the factors of carbonitriding time and tempering
temperature are significant for case hardness. The optimum mean case hardness is 649.2HV. For the case
hardness, the optimum process-capability ratio increases by about 200% compared to the original result. The
new carbonitriding parameter settings evidently improve the performance measures over their values at the
original settings. The strength of the carbonitrided AISI 1022 self-drilling tapping screws is effectively improved.
More from International journal of scientific and technical research in engineering (IJSTRE) (20)
Using recycled concrete aggregates (RCA) for pavements is crucial to achieving sustainability. Implementing RCA for new pavement can minimize carbon footprint, conserve natural resources, reduce harmful emissions, and lower life cycle costs. Compared to natural aggregate (NA), RCA pavement has fewer comprehensive studies and sustainability assessments.
A SYSTEMATIC RISK ASSESSMENT APPROACH FOR SECURING THE SMART IRRIGATION SYSTEMSIJNSA Journal
The smart irrigation system represents an innovative approach to optimize water usage in agricultural and landscaping practices. The integration of cutting-edge technologies, including sensors, actuators, and data analysis, empowers this system to provide accurate monitoring and control of irrigation processes by leveraging real-time environmental conditions. The main objective of a smart irrigation system is to optimize water efficiency, minimize expenses, and foster the adoption of sustainable water management methods. This paper conducts a systematic risk assessment by exploring the key components/assets and their functionalities in the smart irrigation system. The crucial role of sensors in gathering data on soil moisture, weather patterns, and plant well-being is emphasized in this system. These sensors enable intelligent decision-making in irrigation scheduling and water distribution, leading to enhanced water efficiency and sustainable water management practices. Actuators enable automated control of irrigation devices, ensuring precise and targeted water delivery to plants. Additionally, the paper addresses the potential threat and vulnerabilities associated with smart irrigation systems. It discusses limitations of the system, such as power constraints and computational capabilities, and calculates the potential security risks. The paper suggests possible risk treatment methods for effective secure system operation. In conclusion, the paper emphasizes the significant benefits of implementing smart irrigation systems, including improved water conservation, increased crop yield, and reduced environmental impact. Additionally, based on the security analysis conducted, the paper recommends the implementation of countermeasures and security approaches to address vulnerabilities and ensure the integrity and reliability of the system. By incorporating these measures, smart irrigation technology can revolutionize water management practices in agriculture, promoting sustainability, resource efficiency, and safeguarding against potential security threats.
Optimizing Gradle Builds - Gradle DPE Tour Berlin 2024Sinan KOZAK
Sinan from the Delivery Hero mobile infrastructure engineering team shares a deep dive into performance acceleration with Gradle build cache optimizations. Sinan shares their journey into solving complex build-cache problems that affect Gradle builds. By understanding the challenges and solutions found in our journey, we aim to demonstrate the possibilities for faster builds. The case study reveals how overlapping outputs and cache misconfigurations led to significant increases in build times, especially as the project scaled up with numerous modules using Paparazzi tests. The journey from diagnosing to defeating cache issues offers invaluable lessons on maintaining cache integrity without sacrificing functionality.
TIME DIVISION MULTIPLEXING TECHNIQUE FOR COMMUNICATION SYSTEMHODECEDSIET
Time Division Multiplexing (TDM) is a method of transmitting multiple signals over a single communication channel by dividing the signal into many segments, each having a very short duration of time. These time slots are then allocated to different data streams, allowing multiple signals to share the same transmission medium efficiently. TDM is widely used in telecommunications and data communication systems.
### How TDM Works
1. **Time Slots Allocation**: The core principle of TDM is to assign distinct time slots to each signal. During each time slot, the respective signal is transmitted, and then the process repeats cyclically. For example, if there are four signals to be transmitted, the TDM cycle will divide time into four slots, each assigned to one signal.
2. **Synchronization**: Synchronization is crucial in TDM systems to ensure that the signals are correctly aligned with their respective time slots. Both the transmitter and receiver must be synchronized to avoid any overlap or loss of data. This synchronization is typically maintained by a clock signal that ensures time slots are accurately aligned.
3. **Frame Structure**: TDM data is organized into frames, where each frame consists of a set of time slots. Each frame is repeated at regular intervals, ensuring continuous transmission of data streams. The frame structure helps in managing the data streams and maintaining the synchronization between the transmitter and receiver.
4. **Multiplexer and Demultiplexer**: At the transmitting end, a multiplexer combines multiple input signals into a single composite signal by assigning each signal to a specific time slot. At the receiving end, a demultiplexer separates the composite signal back into individual signals based on their respective time slots.
### Types of TDM
1. **Synchronous TDM**: In synchronous TDM, time slots are pre-assigned to each signal, regardless of whether the signal has data to transmit or not. This can lead to inefficiencies if some time slots remain empty due to the absence of data.
2. **Asynchronous TDM (or Statistical TDM)**: Asynchronous TDM addresses the inefficiencies of synchronous TDM by allocating time slots dynamically based on the presence of data. Time slots are assigned only when there is data to transmit, which optimizes the use of the communication channel.
### Applications of TDM
- **Telecommunications**: TDM is extensively used in telecommunication systems, such as in T1 and E1 lines, where multiple telephone calls are transmitted over a single line by assigning each call to a specific time slot.
- **Digital Audio and Video Broadcasting**: TDM is used in broadcasting systems to transmit multiple audio or video streams over a single channel, ensuring efficient use of bandwidth.
- **Computer Networks**: TDM is used in network protocols and systems to manage the transmission of data from multiple sources over a single network medium.
### Advantages of TDM
- **Efficient Use of Bandwidth**: TDM all
KuberTENes Birthday Bash Guadalajara - K8sGPT first impressionsVictor Morales
K8sGPT is a tool that analyzes and diagnoses Kubernetes clusters. This presentation was used to share the requirements and dependencies to deploy K8sGPT in a local environment.
A review on techniques and modelling methodologies used for checking electrom...nooriasukmaningtyas
The proper function of the integrated circuit (IC) in an inhibiting electromagnetic environment has always been a serious concern throughout the decades of revolution in the world of electronics, from disjunct devices to today’s integrated circuit technology, where billions of transistors are combined on a single chip. The automotive industry and smart vehicles in particular, are confronting design issues such as being prone to electromagnetic interference (EMI). Electronic control devices calculate incorrect outputs because of EMI and sensors give misleading values which can prove fatal in case of automotives. In this paper, the authors have non exhaustively tried to review research work concerned with the investigation of EMI in ICs and prediction of this EMI using various modelling methodologies and measurement setups.
Redefining brain tumor segmentation: a cutting-edge convolutional neural netw...IJECEIAES
Medical image analysis has witnessed significant advancements with deep learning techniques. In the domain of brain tumor segmentation, the ability to
precisely delineate tumor boundaries from magnetic resonance imaging (MRI)
scans holds profound implications for diagnosis. This study presents an ensemble convolutional neural network (CNN) with transfer learning, integrating
the state-of-the-art Deeplabv3+ architecture with the ResNet18 backbone. The
model is rigorously trained and evaluated, exhibiting remarkable performance
metrics, including an impressive global accuracy of 99.286%, a high-class accuracy of 82.191%, a mean intersection over union (IoU) of 79.900%, a weighted
IoU of 98.620%, and a Boundary F1 (BF) score of 83.303%. Notably, a detailed comparative analysis with existing methods showcases the superiority of
our proposed model. These findings underscore the model’s competence in precise brain tumor localization, underscoring its potential to revolutionize medical
image analysis and enhance healthcare outcomes. This research paves the way
for future exploration and optimization of advanced CNN models in medical
imaging, emphasizing addressing false positives and resource efficiency.
Literature Review Basics and Understanding Reference Management.pptxDr Ramhari Poudyal
Three-day training on academic research focuses on analytical tools at United Technical College, supported by the University Grant Commission, Nepal. 24-26 May 2024
IMPACT OF STOCK EXCHANGE MARKET TO THE ECONOMIC GROWTH IN TANZANIA
1. International journal of scientific and technical research in engineering (IJSTRE)
www.ijstre.com Volume 1 Issue 8 ǁ November 2016.
Manuscript id.371428287 www.ijstre.com Page 42
IMPACT OF STOCK EXCHANGE MARKET TO THE
ECONOMIC GROWTH IN TANZANIA
Samwel Werema1
, Lwaga Nikupala2
Like developed countries, developing countries have established stock markets in view of achieving their
economic growth. This study sought to investigate the impact of stock exchange market to the economic growth
in Tanzania over a period of 1998 - 1992. A simple regression model using the 1998-2012 annual data sets was
employed. The empirical findings show that the market size has a negative impact on economic growth, which
suggests that the stock market in Tanzania is still infant and thus does not have a significant impact on
economic growth. The findings also show that the market liquidity has a positive impact on the economic
growth, which suggests that that despite the size of the stock market, the market is very active.
Keywords: stock exchange, market capitalization, market liquidity, economic growth.
I. Introduction
The stock markets help to bring together savers and users of funds in an economy. The savers would
get the best returns from their funds and, on the other hand, the users would raising funds which they would use
to invest on their real assets. At the end, the economy would grow.
The growth trend of the stock markets worldwide has been remarkable (Witkowski, 2015). By February 2015,
theglobal stock market capitalizationhad grown to USD 69 trillion dollars from USD 34 trillion in 2008. On the
other hand, the stock market liquidity rose from USD 9.6 trillion in 1994 to USD 29.7 trillion in 2014
(Schmerken, 2014).
By 2009, the African stock markets account for only 2 percent of the total value of the world’s stock markets
(Capital Markets Authority, 2009). The Dar Es Salaam Stock Exchange (DSE) was created for the aim of
providing responsive securities exchange that promotes economic empowerment and contribute to the country's
economic development through offering a range of attractive and cost-effective products and services (DSE,
2015). By June 2015, the market capitalization, at DSE had a value of USD 10.7 billion equivalent to Tshs.
23,721.49 billion from only Tshs. 3,083.37 billion in 2007, and the stock market liquidity rose from 117,941 in
2006 to 1,780,915 in 2014. Although the comparison of Tanzania’s market capitalization to the world may seem
bleak, the DSE has come a long way since its formation (DSE, 2015).
It is partly for this reason, many scholars, policy makers and investors have been interested in knowing the
impact of the stock market in developing countries. In order for there to be growth and development, the stock
market in a particular country must be able to effectively mobilize funds from savers to investors in order to
foster economic growth.
The DSE was established as one of the government initiatives to transform the economy from public
government driven economy to a free market economy. The stock market could function as a vessel for the
growth of related financial services sector such as insurance, pension and provident fund schemes. It could act
as an improvement of access to finance for new and smaller companies. It could monitor changes in an economy
through the price of shares; when the prices rise or fall; this indicates an economic boom or recession
respectively. It also helps in facilitating the most productive investments and leads to capital formation and
eventually economic growth (Pujari, 2011).
The DSE was incorporated in 1996 and started operations with listing and trading of the first equity in 1998 with
only two listed companies, Tanzania Oxygen Limited (TOL) and Tanzania Breweries Limited (TBL) in the
same year, and until March 2016, there are 23 companies listed in the DSE.
Existing literature does not conclusively show whether stock markets have any impact on the economic growth
(Alajekwu & Achugbu, 2011; Shivji, 2010; Massele et al, 2013). It is from these inconsistent findings that this
studyis motivated to find out the extent to which the DSE has an impact on the economic growth of Tanzania
between the year 1998 and 2014. The findings of this study will contribute to the existing literature on the
impact of the stock markets to the economic growth of a country.
1
Institute of Accountancy Arusha, P. O. Box 2798, Arusha; swerema@iaa.ac.tz, the corresponding author.
2
Institute of Accountancy Arusha, P. O. Box 2798, Arusha.
2. IMPACT OF STOCK EXCHANGE MARKET TO THE ECONOMIC GROWTH IN TANZANIA
Manuscript id.371428287 www.ijstre.com Page 43
The general objective of this study was to analyze the impact of the stock market on the economic growth of
Tanzania. Specifically, the study tried to achieve the following objectives:
i) To determine the effects of stock market liquidity to GDP in Tanzania
ii) To determine the effects of stock market size to GDP in Tanzania
iii) To find out determinants of the stock market performance in relation to economic growth in
Tanzania
It is hypothesized that:
H01: Stock market liquidity affects the GDP in Tanzania
H02: Stock market size does not affect the GDP in Tanzania
H03: There are no determinants of the stock market performance in relation to economic growth in Tanzania
II. Literature Review
2.1 Stock market development indicators
Size Indicator: Stock market capitalization measures the size of the stock market and equals the value of listed
domestic shares on domestic exchanges divided by GDP. Even though large markets do not necessarily function
well and taxes may misrepresent motivation to list on the exchange, many observers use stock market
capitalization as an indicator of market development.
Liquidity Indicators: There are two common related measures of market liquidity. First, it is the turnover,
which is equal the value of domestic shares that are traded on domestic exchanges divided by the value of
domestic shares that are only listed. Turnover measures the volume of domestic shares traded on domestic
exchanges relative to the size of the domestic market. High Turnover indicates high liquidity and low
transaction costs. This does not mean a large stock market is a liquid market: a large but inactive market will
have large size (stock market capitalization) but small Turnover (Levine & Zervos, 1998).
The second measure of market liquidity is value or volume of shares traded, which equals the value of the shares
traded on domestic exchanges divided by GDP. This may not be a direct measure of trading costs but theoretical
models of stock market liquidity and economic growth directly motivate Value Traded (Levine 1991;
Bencivenga et al. 1995). Volume of shares traded measures trading volume as a share of national output and
should therefore shows liquidity on an economy-wide basis (Levine & Zervos, 1998).
2.2 Stock Market and Economic Growth
The stock market is associated with economic growth in a way that; it helps investors to diversify their risks by
investing in multiple companies. As a result of this, firms are able to raise capital from investors and thus
facilitate production which leads to growth. The stock market liquidity allows investors to easily buy shares with
the higher returns by observing the share prices, therefore facilitating capital mobilization. This leads to the
allocation of capital to the firms with higher productivity and hence leads to increased output, efficiency
allocation of financial resources and economic growth. Hence, a larger and liquid stock market has higher
chances of mobilizing resources which leads to economic development.
2.3 Empirical Literature
Biyan (2012) studied the role of Stock Exchange market to economic growth in Tanzania and found that both
market capitalization and value of share traded contribute a small amount in growth of the economy of
Tanzania. The similar study was done in Kenya and the results show that stock market development (measured
by trade volume and/or capitalization) has a positive impact on the economic growth in Kenya (Ikikii and
Nzomoi, 2013). The same results were also reported in Mauritius (Nowbutsing, 2009) and South Africa,
(Odhiambo, 2009).
3. IMPACT OF STOCK EXCHANGE MARKET TO THE ECONOMIC GROWTH IN TANZANIA
Manuscript id.371428287 www.ijstre.com Page 44
III. Research Methodology
3.1 Model Specification
This study adapts the approach by Odhiambo (2009) with some modifications. In analyzing the relationship
between the stock market and economic growth in South Africa, Odhiambo used real per capita GDP, market
capitalization, value of shares traded andturnover. In this study, the variables that were used were the market
capitalization, the value of shares traded and real GDP. The turnover was not used due to the lack of sufficient
data. The model is specified as follows:
RGDP = f (MC, VST)
Where MC refers to the Market capitalization, VST is value of shares traded and RGDP is real Gross Domestic
Product.
The a priori expectations are that all variables are independent variables and they are expected to have a
positive relationship with the dependent variable. If the a priori signs which indicate the coefficients of the
indicators of stock market are positively related to economic growth, it suggests that an increase in these factors
will cause the real GDP, to increase.
3.2 Definition of variables
Gross Domestic Product (RGDP): GDP is the monetary value of all finished goods and services produced
within a country's borders. The variable is represented by real GDP. The real GDPis measured in Tanzania
Shillings.
Market capitalization: The market size is represented by the market capitalization (MC). Although large
markets do not necessarily function effectively, many observers use Capitalization as an indicator of market
development, (Levine & Zervos, 1998).
Volume of shares traded (VST): The stock market liquidity is represented by the volume of shares traded.
This equals the value of the trades of shares on domestic exchanges. Value traded measures trading volume as a
share of national output and should therefore positively reflect liquidity on an economy wide basis, (Levine &
Zervos, 1998).
3.3 Source of data
The study uses quarterly time series data covering the period 1998 to 2014. The study covered this period
because it is a time where Tanzania had liberalized its economy and the stock exchange had already started
functioning. The data for the MC, and the VST was obtained from the Dar Es Salaam Stock Exchange. The data
for the real GDP was obtained from the National Bureau of Statistics’ of Tanzania Mainland.
IV. Empirical Analysisand Interpretation
4.1 Descriptive Statistics
Table 1 presents the mean, median, minimum, maximum, standard deviation, skewness and kurtosis tests for
each variable.
Table 1:Descriptive Statistics
Variable Real GDP Market capitalization Volume of shares traded
Observations 15 15 15
Mean 16780.07 1639.385 24.228
Std. Dev. 12802.35 1824.487 516.64417
Min 5125 5.924 0
Max 48415 5181.41 59.8
Prob>chi2
0.0317 0.2121 0.1839
The table above shows that the p-values (Prob>chi2
) of the GDP is significant. However, the other two variables
market capitalization and volume of shares traded are insignificant.
4. IMPACT OF STOCK EXCHANGE MARKET TO THE ECONOMIC GROWTH IN TANZANIA
Manuscript id.371428287 www.ijstre.com Page 45
4.2 Correlation Analysis
Correlation analysis among the variables shows the strength and direction of relationship among the two
variables. It can also be used as an indicator for testing the presence of multicollinearity among the
variables.Table 2 presents the correlation matrix of the variables.
Table 2: Correlation Analysis
Real GDP Market capitalization Volume of shares traded
RealGDP
1.0000
market capitalization 0.1479 1.0000
volume of shares traded 0.6889 0.4316 1.0000
Table 2 above shows the correlation matrix for the variables of the model. The signs of this correlation matrix,
which are positive, give the direction of linear relationship between the corresponding two variables, while the
magnitude gives the strength of the correlation. The closer the values are to 1 the higher the correlation between
them.
The simple correlation coefficient between the real GDP and the market capitalization is 0.14. That means that
the market capitalization explains (0.14)2
or 1.96 percent of the variation in the real GDP. These results are
unexpected since theoretically, the size of the stock market which is represented by the market capitalization is
supposed to affect the GDP. The researcher expected the stock market capitalization to influence the stock
market in Tanzania. Surprisingly, the stock market capitalization (market size) as shown by the simple
correlation slightly explains the variation in the economic growth of Tanzania. These results suggest that the
stock market in Tanzania is still in its infant stages and thus cannot affect the country’s GDP.
The highest correlation is found to exist between real GDP and volume of shares traded. The volume of shares
traded explains 46 percent (0.68)2
of the variation in the real GDP. This might be because as the country’s GDP
grows so does the volume of shares traded,the reason behind is the increase in individuals’ income due to
growth of GDP, which leads to savings and investment in the country to increase. The increase of savings and
investments in a stock market leads to the upsurge of the volume of shares traded in the exchange. Lastly, the
simple correlation between volume of shares traded and market capitalization is (0.43)2
which means that
volume of shares traded explains 18 percent of the variation in market capitalization and vice versa.
4.3. Regression Analysis - Ordinary Least Square Method
Table 3:Regression Analysis
Number of observations
15
F( 2, 12) 6.05
Prob > F 0.0152
R-squared 0.5020
Adj R-squared 0.4190
As with the simple regression, we look to the p-value of the F-test to see if the overall model is significant.
Since the p-value is 0.0152, the null hypothesis is rejected. Thus the model is statistically significant. The R-
squared is 0.5020, this is converted to percentage form and it means that approximately 50% of the variability
of real GDP is accounted for by the variables in the model. In this case, the adjusted R-squared which is 0.4190
indicates that about 41% of the variability ofreal GDP is accounted for by the variables of the model.
5. IMPACT OF STOCK EXCHANGE MARKET TO THE ECONOMIC GROWTH IN TANZANIA
Manuscript id.371428287 www.ijstre.com Page 46
Table 4: Regression Analysis (Cont.)
Coef Std.err t P>|t| [95% Conf. Interval]
MC -1.288369 1.584597 -0.81 0.043 -4.740908 2.164171
VST 590.8457 173.6991 3.40 0.005 212.388 969.3035
_Cons 4577.188 4622.818 0.99 0.002 -5495.068 14649.44
The p-value of market capitalization is 0.04; it indicates weak significance of the variable to economic growth
(since it is only a little less than 0.05). If volume of shares traded are fixed, for each unit increase in market
capitalization, economic growth will decrease by 1.29 units. The decrease in market capitalization is determined
by the negative coefficient. This result portrays that thestock market capitalization (market size) in Tanzania is
still in its infant stages. Moreover the negative effect further complements the findings that the size of the stock
marketdoes not have an impact on economic growth. The results are puzzling since they do not adhere to the
expectations that market capitalization which represents stock market size has a positive impact on economic
growth.However, these results do reflect the situation in Tanzania where the domestic market capitalization is
still narrow and thin and is worth only 10 percent of the country’s GDP.
V. Conclusionand Recommendations
5.1 Summary and Conclusion
The objective of the study was to analyze the impact of the stock exchange market to the economic growth in
Tanzania.The reason for carrying out this research was drawn from the fact that there is growing momentum of
the importance of this sector in developing countries including Tanzania. This sparked interest to the researcher
to investigate the variables of the stock market and find out the relationship between these variables and
economic growth in Tanzania.
The regression analysis results show that the overall model was significant. However, the market capitalization
had a weak significance and a negative effect on economic growth. These results were puzzling since they are
conflicting the assumption that the stock market should positively affect economic growth. These resultscould
also imply that the stock market capitalization in Tanzania is too small to have an impact on GDP, whereas the
volume of shares traded had a positive effect on economic growth. This implies that the stock market in
Tanzania is still in its infant stages and cannot affect economic growth while the liquidity of the stock market is
improving as more investors are engaging in buying and selling of shares. These results are contrary to apriori
expectations whereby both the stock market capitalization and volume of shares traded should have a positive
impact on economic growth.
The results may also stem from the fact that the time frame of 15 years (1998-2012) may not be long enough for
results of establishing a stock exchange to be realized. There are also few companies that have enlisted their
shares in the stock market yet and hence the upside potential is high. Comparatively, the studies of the stock
market in South Africa have been using variables which ranges from 1970s to 2000s with over 400 companies
compared to DSE with only 23 listed companies.
Since this study dwelt on the impact of the stock market size and liquidity on the economic growth, the future
studies could extend the results of this study and explore the relationship between the stock market and other
macroeconomic variables such as savings, investment, and employment. In so doing, the studies would provide
a clearer picture of the DSE in relation to specific variables that have impact on the economy.
References
[1.] Alajekwu, B. U. and Ezeabasili, V. (2012): Stock Market Liquidity and Economic Growth: Evidence from Nigeria. Economic
Journal of 2 Z, 12 – 17.
[2.] Best, R. (2008): An Introduction to Error Correction Models. Oxford Spring School for Quantitative Methods in Social Research.
[3.] Bundala, N. N. (2012): Determinants of Capital Structure: Evidence from Tanzanian Non – Financial Listed Companies, The
Open University of Tanzania.
[4.] Dar Es Salaam Stock Exchange (2013): Dar Es Salaam Stock Exchange: Frequently Asked Questions, Dar Es Salaam, Tanzania.
[5.] Dar Es Salaam Stock Exchange (2015): DSE Handbook:
[6.] Gujarati, D. (2004): Basic Econometrics, The Mc-Graw Hill Companies
[7.] Ikikii, S., and Nzomoi, J. N. (2013): An Analysis of the Effects of Stock Market Development on Economic Growth in Kenya,
Kampala: Analysis and Planning Division, Kilimo Trust.
[8.] Levine, R. and Zervos, S. (1998): Stock Markets, Banks and Economic Growth. The American Economic Review, 537 – 558.
[9.] Mohtadi, H., and Agarwal, S. (2000): Stock Market Development and Economic Growth: Evidence from Developing Countries.
[10.] Odhiambo, P. N. (2009): Stock Market Development and Economic Growth in South Africa: An ARDL Bounds Testing
Approach. Pretoria, University of South Africa.
[11.] Schmerken, I. (2014): Exchanges. Retrieved May 8, 2016 from Wall Street Technology.
[12.] Witkowski, W. (2015): Global Stock Market cap has doubled since QE’s start. Retrieved May 2016 from Market Watch
6. IMPACT OF STOCK EXCHANGE MARKET TO THE ECONOMIC GROWTH IN TANZANIA
Manuscript id.371428287 www.ijstre.com Page 47
Appendix A: Real GDP, Market Capitalization and Volume of shares traded annual data
Year GDP (Tshs Billion) MC (Tshs Billion) VST (Tshs Billion)
1998 5125 163 0
1999 5978 145 5.21
2000 6706 189 32.08
2001 7625 378 7.60
2002 9752 689 18.85
2003 10,423 500 22
2004 11,239 800 17
2005 12,068 2500 28
2006 12,881 2573 15.30
2007 13,801 3118 27.30
2008 14,828 3411 26.39
2009 25,510 5181.41 33.81
2010 29,298 4924.53 55.12
2011 38,052 5.924 14.96
2012 48,415 12.909 59.80
Appendix B: Quarterly data of log of Real GDP, Market Capitalization Ratio and Volume of shares ratio
QUARTER LRGDP Log of market capitalization Log of volume of shares traded
2007q1 14.92378 13.84507 2.8456
2007q2 15.06367 13.70234 3.86562
2007q3 15.20838 13.56448 3.1525
2007q4 15.39801 13.78299 4.12342
2008q1 14.99975 13.79224 3.89125
2008q2 15.12335 13.70122 3.73697
2008q3 15.58285 13.55933 4.97965
2008q4 15.07519 13.90169 2.46982
2009q1 15.05396 14.15198 3.68312
2009q2 15.16208 14.04662 2.54
2009q3 15.34032 13.92884 1.34994
2009q4 15.15905 14.10069 2.49403
2010q1 15.12676 14.10818 2.04494
2010q2 15.23493 13.98946 1.74102
2010q3 15.40282 13.82546 2.35523
2010q4 15.22465 13.99783 1.10139
2011q1 15.18552 14.10069 1.66146
2011q2 15.30077 14.07788 1.75545
2011q3 15.45659 13.96393 2.79242
2011q4 15.29747 14.35783 2.57187
2012q1 15.25667 14.82711 3.11755
2012q2 15.36305 14.73977 3.00574
2012q3 15.52958 14.65276 2.30338
7. IMPACT OF STOCK EXCHANGE MARKET TO THE ECONOMIC GROWTH IN TANZANIA
Manuscript id.371428287 www.ijstre.com Page 48
2012q4 15.35855 14.83796 2.81087
2013q1 15.32854 14.89392 2.77767
2013q2 15.43596 14.81246 1.43422
2013q3 15.59046 14.69928 1.4509
2013q4 15.42362 14.99108 1.59326
2014q1 15.3971 15.07113 1.95549
2014q2 15.50238 15.01548 1.5628