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The determinants of foreign direct investment in Ghana
Eghan, Jonathan Ronald Muller
ABSTRACT Foreign direct investment and its determinants have been extensively examined by many scholars in hopes to analyze and identify how these determinants impact FDI and in some cases vice versa. The determinants of FDI used in this study include GDP growth and inflation in Ghana. The objective of this paper is to investigate the dynamic relationship between FDI, GDP growth and inflation and this was achieved with the help of the vector autoregressive model which helped us explain the granger causation relationship between the variables. Econometric methodologies such as Augmented Dickey-Fuller test, Johansen cointegration test, Granger causality test among others were used to support the objective of the VAR model. The study covered the period from 1980 to 2015 and employed secondary data which was gathered from the World Bank. The results from the VAR model proved that GDP growth and inflation have no linear causation relationship with FDI in Ghana within the analyzed period. These results were ascertained in the condition that within the studied period, the current values of FDI were not determined by the past values of GDP growth and inflation. The study recommended that the Government must create an enabling environment for foreign investors. Also, the Government must showcase the investment potentials of Ghana globally through technological spillovers among others.
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Monetary Transmission Mechanism: A Closer Look Inside the Black Box
Dvořák, Martin ; Vácha, Lukáš (advisor) ; Lypko, Vyacheslav (referee)
The recent economic and financial turmoil has led central banks around the world to heavily utilize unconventional monetary policy measures. Unconventional in this sense means a deflection from traditional central bank policy measures, i.e. interest rate innovations. Although these measures were widely discussed, the uniformed, coherent and comprehensive framework of such measures is still missing. The aim of this thesis is to establish the framework for possible classification of such policies together with transmission channels to the real economy. The empirical part examines the impacts of unconventional policies on real data using vector autoregression and vector error correction models. This analysis is based on monthly data period between 1999 and 2013, which is strongly affected by implementation of the unconventional policies in its second half. The last section examines the possible future of these policies as a normal instrument of central banks and describes their main challenges and shortcomings. JEL classification: C32, E40, E44, E50, E52, E58, E60 Keywords: Unconventional monetary policy, Interest rate, Decoupling principle, Balance sheet policy stratification, Quantitative easing, Channels of transmission, Vector Autoregression, Vector error correction model Author's e-mail:...
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What We Know About Monetary Policy Transmission in the Czech Republic: Collection of Empirical Results
Babecká Kucharčuková, Oxana ; Franta, Michal ; Hájková, Dana ; Král, Petr ; Kubicová, Ivana ; Podpiera, Anca ; Saxa, Branislav
This paper concentrates on describing the available empirical findings on monetary policy transmission in the Czech Republic. Besides the overall impact of monetary policy on inflation and output, it is useful to study its individual channels, in particular the interest rate channel, the exchange rate channel, and the wealth channel. The results confirm that the transmission of monetary impulses to the real economy works in an intuitive direction and to an intuitive extent. Our analyses show, however, that the global financial and economic crisis might have somewhat slowed and weakened the transmission. We found an indication of such a change in the functioning of the interest rate channel, where elevated risk premiums played a major role.
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Econometric analysis of inflation in the Czech Republic
Demeš, Jiří ; Hušek, Roman (advisor) ; Pánková, Václava (referee)
The degree work is focused on analysis of inflation with help of suitable econometric models. Inflation with it's forms and possibilities of measuring is described at the beginning of the paper. There is mentioned an importance of monitoring and analysing inflation in view of Czech national bank. Consequently there are described characteristics of time series, which are important from viewpoint of construction of econometric models. Next part of this paper is focused on characterization of econometrics models. At first there is vector autoregression model, in this connection there is discussed the essence of Granger causality and impulse reaction. There are also noticed both error correction model and vector error correction model. The empirical part of degree work involves the use of these models on selected macroeconomic time series of the Czech republic. The objective is to analyze the relationship between inflation and other individual macroeconomic quantities. There is established the optimal vector autoregressive model and the results of Granger causality and impulse reaction are interpretated. Both error correction model and vector error correction model examining cointegration are also applied.
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