Dynamic Relationship Between External Financial Flows and Total Market Capitalization in The Nigerian Capital Market: VECM Approach (Published)
The study examines the extent to which external financial flows influence market capitalization of Nigerian capital market for the period spanning 1981-2020. The study employed the VECM, regressors’ and ECT t-statistics causality approaches to establish the strong, short-run and long-run relationships. The study unveiled that all the external financial flows such as FDI, FPI, remittance and others used in this study have positive impacts on total annual market capitalization in the Nigerian capital market, especially in the long-run. The stock indices movement is respective to the change in external financial flows basic. The study suggested that the policy measures aimed at directing long run capital inflows should not be the same as those aimed at changing the short run patterns of flow. The study concludes that policy should be put in place to ensure the directions of both long run and short run financial flows have a suitable time rage.
Citation: Folorunsho T.O. and Odior E.S. (2023) Dynamic Relationship Between External Financial Flows and Total Market Capitalization in The Nigerian Capital Market: VECM Approach, International Journal of Business and Management Review, Vol.11, No. 2, pp.1-28
Keywords: Nigeria, VECM, external financial, total market capitalization
CARBON EMISSION AND ECONOMIC GROWTH OF SAARC COUNTRIES: A VECTOR AUTOREGRESSIVE (VAR) ANALYSIS (Published)
This paper examines the causal relationship between carbon ( ) emissions and economic growth in seven SAARC countries using time series data for the period from 1972-2012. We applied Vector Error Correction Modeling (VECM) approach. We have also applied Augmented Dickey-Fuller (ADF) and Phillips-Perron (P.P) test and Johansen’s cointegration approach to check time series properties and cointegration relationship of the variables. Results exhibit a cointegration relationship between environmental pollution and economic growth. Results also show that the estimated coefficients of emissions have positive and significant impacts on GDP in the long run. These results will help the environmental authorities to understand the effects of economic growth on environment for degradation and manage the environmental problems using macroeconomic methods.