The switching impact of financial stability and economic growth in Qatar: Evidence from an oil-rich country

Alsamara, Mouyad; Mrabet, Zouhair; Jarallah, Shaif; Barkat, Karim

doi:10.1016/j.qref.2018.05.008

Cited by 34 publications

(31 citation statements)

References 34 publications

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“…Other advantages of the ARDL cointegration technique mention the following aspects: Different restrictions can be applied in terms of the optimum number of lags of the variables under consideration [85]; it is based on a single equation, which estimates simultaneously both the short-run and the long-run relationships, which makes it easy to implement and interpret [86][87][88][89]. The ARDL Bound test model, used in this study is expressed as follows [90,91]:…”

Section: The Ardl Bound Cointegration Testmentioning

confidence: 99%

“…In order to obtain more precise results for this test and because we have a small sample, we considered both the set of critical values, as proposed by Pesaran et al [82] and Kripfganz and Schneider [92]. Notes: (a) denotes the critical values proposed by Pesaran et al [81] and (b) denotes the critical values proposed by Kripfganz and Schneider [91].…”

Section: The Ardl Bound Cointegration Testmentioning

confidence: 99%

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The Impact of Interest Rate, Exchange Rate and European Business Climate on Economic Growth in Romania: An ARDL Approach with Structural Breaks

2020

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The role of the interest and exchange rates in sustaining economic growth has been a highly researched subject. Therefore, this study examines the influence of the monetary policy interest rate, the real exchange rate and the business climate in the Euro area on the economic growth in Romania. For this purpose, we have applied a pre-test for structural breaks to identify the existence of structural breaks, followed by the traditional unit root tests and the unit root tests with structural breaks to verify the stationarity of the variables. The results of the Bound cointegration test led to the autoregressive distributed lag (ARDL) short-run model that measures the short-run impact of the interest rate, exchange rate and the business climate in the Euro area on the economic growth of Romania. Our findings show that in the short run, the economic growth is negatively influenced by the interest rate, and positively by the exchange rate. We also indicate that the business climate in the Euro area has mixed effects on the economic growth. Finally, considering the growing interdependence between the internal and external (European) business environment, the results are highly significant for handling the interest and exchange rates in sustaining economic growth.

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Section: The Ardl Bound Cointegration Testmentioning

confidence: 99%

Section: The Ardl Bound Cointegration Testmentioning

confidence: 99%

The Impact of Interest Rate, Exchange Rate and European Business Climate on Economic Growth in Romania: An ARDL Approach with Structural Breaks

2020

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“…These challenges resulted in significant disruption in the operations of the financial institutions and governments had to intervene to forestall their collapse. The crisis and interventions indicate the existence of a link between the performance of financial institutions and economic growth (Alsamara et al, 2018). A stable financial system enhances economic performance in many dimensions, whereas an unstable financial system detects economic performance (Schinasi, 2004).…”

Section: Introductionmentioning

confidence: 99%

“…On the empirical side, prior literature posits diverse views regarding the relationship between the financial stability and economic growth making the importance of the financial sector to economic growth a matter of great debate and study. Secondly, most of the studies conducted on the effect of the financial stability on economic growth were focused on the developed countries (Alsamara et al, 2018;Duprey et al, 2017;Aboura and Van-Roye, 2017;Klemkosky, 2013).…”

Section: Introductionmentioning

confidence: 99%

Financial Stability and Economic Growth Nexus: Evidence From Sub-Saharan Africa Using Panel Data

Ahulu

MacCarthy

Muda

2021

IJEFI

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This paper examines the effect of financial stability on the economic growth of countries in Sub-Saharan Africa using the World Development Indicators Data. To select the appropriate model best fits for the data, the Hausman test was used to select Random Effect Estimator over Fixed Effect Estimator to assess the relationship between the variables. Panel data was collected on Sub-Saharan Africa countries from 2010 to 2019 to predict the effect of financial stability on economic growth. The paper revealed that financial stability accounted for 71.8% of the variation of a country's economic growth for the period other things being equal. It recommends that financial regulators within Sub-Saharan African should provide prudential policies aim at attaining higher economic growth should target both monetary and fiscal policies as well market discipline.

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“…In relation to crude oil price, volatility is the variation in the worth of a variable, especially price. Volatility is the measure of the tendency of oil price to rise or fall sharply within a period of time, such as a day, a month or a year [6]. Defines volatility as the standard deviation in a given period.…”

Section: Introductionmentioning

confidence: 99%

Modeling Fluctuation of the Price of Crude Oil in Nigeria Using ARCH, ARCH-M Models

Monday

Abdulkadir

2020

AJPAS

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As a mono-product economy, where the main export commodity is crude oil, volatility in oil prices has implications for the Nigerian economy and, in particular, exchange rate movements. The latter is particularly important due to the twin dilemma of being an oil exporting and oil-importing country, a situation that emerged in the last decade. The study examined the effects of oil price volatility, demand for foreign exchange, and external reserves on exchange rate volatility in Nigeria using monthly data over the period from May, 1989 to April 2019. Drawing from the works of Atoi [1] Having realized the potentials of an Autoregressive conditional heteroskedasticity (ARCH) model several studies have use it in modeling financial series. However, when using the ARCH model in determining the optimal lag length of variables the processes are very cumbersome. Therefore, often time users encounter problems of over parameterization. Thus, Rydberg (2016) argued that since large lag values are required in ARCH model therefore there is the need for additional parameters. Sequel to that, this research uses the ARCH-M to solve the challenges. The study reaffirms the direct link of demand for foreign exchange and oil price volatility with exchange rate movements and, therefore, recommends that demand for foreign exchange should be closely monitored and exchange rate should move in tandem with the volatility in crude oil prices bearing in mind that Nigeria remains an oil-dependent economy.

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The switching impact of financial stability and economic growth in Qatar: Evidence from an oil-rich country

Cited by 34 publications

References 34 publications

The Impact of Interest Rate, Exchange Rate and European Business Climate on Economic Growth in Romania: An ARDL Approach with Structural Breaks

The Impact of Interest Rate, Exchange Rate and European Business Climate on Economic Growth in Romania: An ARDL Approach with Structural Breaks

Financial Stability and Economic Growth Nexus: Evidence From Sub-Saharan Africa Using Panel Data

Modeling Fluctuation of the Price of Crude Oil in Nigeria Using ARCH, ARCH-M Models

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