Search results for: causality violation
103 Causality between the Construction Industry and the GDP in the United Arab Emirates
Authors: Hasan S. Mahmoud, Salwa M. Beheiry, Vian Ahmed
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In light of the repercussions of the 2008 global economic crisis, the response of the United Arab Emirates economy and growth, and the vast construction activities that are undergoing, there is a need to investigate the relationship between construction activities and the Gross Domestic Product (GDP). This study aims to investigate the causality relationship between the construction industry in the United Arab Emirates and the GDP of the country in the last decade. For that, this study will investigate the relationship between the growth of the GDP and the growth of construction activities and their value addition to the economy. To ascertain this relationship, Granger Causality method is used to identify the causality between the time-dependent series.
Keywords: Construction value addition, Granger causality, Growth of GDP, UAE.
Procedia APA BibTeX Chicago EndNote Harvard JSON MLA RIS XML ISO 690 PDF Downloads 1283102 Analysis of Causality between Defect Causes Using Association Rule Mining
Authors: Sangdeok Lee, Sangwon Han, Changtaek Hyun
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Construction defects are major components that result in negative impacts on project performance including schedule delays and cost overruns. Since construction defects generally occur when a few associated causes combine, a thorough understanding of defect causality is required in order to more systematically prevent construction defects. To address this issue, this paper uses association rule mining (ARM) to quantify the causality between defect causes, and social network analysis (SNA) to find indirect causality among them. The suggested approach is validated with 350 defect instances from concrete works in 32 projects in Korea. The results show that the interrelationships revealed by the approach reflect the characteristics of the concrete task and the important causes that should be prevented.Keywords: Causality, defect causes, social network analysis, association rule mining.
Procedia APA BibTeX Chicago EndNote Harvard JSON MLA RIS XML ISO 690 PDF Downloads 1335101 Electricity Consumption and Economic Growth: The Case of Mexico
Authors: Mario Gómez, José Carlos Rodríguez
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The causality between energy consumption and economic growth has been an important issue in the economic literature. This paper studies the causal relationship between electricity consumption and economic growth in Mexico for the period of 1971-2011. In so doing, unit root and causality tests are applied. The results show that energy consumption and economic growth series are stationary and there is also a causality relationship running from economic growth to electricity consumption. Therefore, any energy conservation policy would have little or no impact at all on economic growth in México.Keywords: Causality, economic growth, electricity consumption, Mexico.
Procedia APA BibTeX Chicago EndNote Harvard JSON MLA RIS XML ISO 690 PDF Downloads 2874100 Analysis of Causality between Economic Growth and Carbon Emissions: The Case of Mexico 1971-2011
Authors: Mario Gómez, José Carlos Rodríguez
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This paper analyzes the Environmental Kuznets Curve (EKC) hypothesis to test the causality relationship between economic activity, trade openness and carbon dioxide emissions in Mexico (1971-2011). The results achieved in this research show that there are three long-run relationships between production, trade openness, energy consumption and carbon dioxide emissions. The EKC hypothesis was not verified in this research. Indeed, it was found evidence of a short-term unidirectional causality from GDP and GDP squared to carbon dioxide emissions, from GDP, GDP squared and TO to EC, and bidirectional causality between TO and GDP. Finally, it was found evidence of long-term unidirectional causality from all variables to carbon emissions. These results suggest that a reduction in energy consumption, economic activity, or an increase in trade openness would reduce pollution.
Keywords: Energy consumption, environmental Kuznets curve, economic growth, causality, co-integration.
Procedia APA BibTeX Chicago EndNote Harvard JSON MLA RIS XML ISO 690 PDF Downloads 111899 Dynamic Interrelationship among the Stock Markets of India, Pakistan and United States
Authors: A. Iqbal, N. Khalid, S. Rafiq
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The interrelationship between international stock markets has been a key study area among the financial market researchers for international portfolio management and risk measurement. The characteristics of security returns and their dynamics play a vital role in the financial market theory. This study is an attempt to find out the dynamic linkages among the equity market of USA and emerging markets of Pakistan and India using daily data covering the period of January 2003–December 2009. The study utilizes Johansen (Journal of Economic Dynamics and Control, 12, 1988) and Johansen and Juselius (Oxford Bulletin of Economics and Statistics, 52, 1990) cointegration procedure for long run relationship and Granger-causality tests based on Toda and Yamamoto (Journal of Econometrics, 66, 1995) methodology. No cointegration was found among stock markets of USA, Pakistan and India, while Granger-causality test showed the evidence of unidirectional causality running from New York stock exchange to Bombay and Karachi stock exchanges.Keywords: Causality, Cointegration, India, Pakistan, Stock Markets, US.
Procedia APA BibTeX Chicago EndNote Harvard JSON MLA RIS XML ISO 690 PDF Downloads 215298 The Complementarities of Multi-Lateralism, Andregionalism and Income Convergence: ASEAN and SAARC
Authors: Kankesu Jayanthakumaran, Shao-Wei Lee
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This paper proposes the hypothesis that multilateralism and regionalism are complementary, and that regional income convergence is likely with a like minded and committed regionalism that often has links geographically and culturally. The association between international trade, income per capita, and regional income convergence in founder members of ASEAN and SAARC, is explored by applying the Lumsdaine, and Papell approach. The causal relationships between the above variables are also studied in respective trade blocs by using Granger causality tests. The conclusion is that global reforms have had a greater impact on increasing trade for both trade blocs and induced convergence only in ASEAN-5 countries. The experience of ASEAN countries shows a two-way causal relationship between the flow from trade to regional income convergence, and vice versa. There is no evidence in SAARC countries for income convergence and causality.
Keywords: ASEAN-5, SAARC-5, trade liberalisation, incomeconvergence, structural breaks and causality.
Procedia APA BibTeX Chicago EndNote Harvard JSON MLA RIS XML ISO 690 PDF Downloads 220797 Governance and Economic Growth: Evidence of Ten Asian Countries
Authors: Chiung-Ju Huang
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This study utilizes a frequency domain approach over the period of 1996 to 2013 to examine the causal relationship between governance and economic growth in ten Asian countries, which have different levels of democracy; classified as “Free”, “Partly Free”, and “Not Free” countries. The empirical results show that there is no Granger causality running from governance to economic growth in “Not Free” countries and “Partly Free” countries with the exception of Singapore. As for “Free” countries such as South Korea and Taiwan, there is a one-way causality running from governance to economic growth. The findings of this study indicate that policy makers in South Korea, Taiwan, and Singapore could use governance index to improve their predictions of the future economic growth.Keywords: Economic growth, frequency domain, governance, Granger causality.
Procedia APA BibTeX Chicago EndNote Harvard JSON MLA RIS XML ISO 690 PDF Downloads 233096 Compression and Filtering of Random Signals under Constraint of Variable Memory
Authors: Anatoli Torokhti, Stan Miklavcic
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We study a new technique for optimal data compression subject to conditions of causality and different types of memory. The technique is based on the assumption that some information about compressed data can be obtained from a solution of the associated problem without constraints of causality and memory. This allows us to consider two separate problem related to compression and decompression subject to those constraints. Their solutions are given and the analysis of the associated errors is provided.Keywords: stochastic signals, optimization problems in signal processing.
Procedia APA BibTeX Chicago EndNote Harvard JSON MLA RIS XML ISO 690 PDF Downloads 133095 Causal Relationship between Macro-Economic Indicators and Funds Unit Prices Behavior: Evidence from Malaysian Islamic Equity Unit Trust Funds Industry
Authors: Anwar Hasan Abdullah Othman, Ahamed Kameel, Hasanuddeen Abdul Aziz
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In this study, attempt has been made to investigate the relationship specifically the causal relation between fund unit prices of Islamic equity unit trust fund which measure by fund NAV and the selected macro-economic variables of Malaysian economy by using VECM causality test and Granger causality test. Monthly data has been used from Jan, 2006 to Dec, 2012 for all the variables. The findings of the study showed that industrial production index, political election and financial crisis are the only variables having unidirectional causal relationship with fund unit price. However the global oil price is having bidirectional causality with fund NAV. Thus, it is concluded that the equity unit trust fund industry in Malaysia is an inefficient market with respect to the industrial production index, global oil prices, political election and financial crisis. However the market is approaching towards informational efficiency at least with respect to four macroeconomic variables, treasury bill rate, money supply, foreign exchange rate, and corruption index.
Keywords: Fund unit price, unit trust industry, Malaysia, macroeconomic variables, causality.
Procedia APA BibTeX Chicago EndNote Harvard JSON MLA RIS XML ISO 690 PDF Downloads 360194 Research of Data Cleaning Methods Based on Dependency Rules
Authors: Yang Bao, Shi Wei Deng, Wang Qun Lin
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This paper introduces the concept and principle of data cleaning, analyzes the types and causes of dirty data, and proposes several key steps of typical cleaning process, puts forward a well scalability and versatility data cleaning framework, in view of data with attribute dependency relation, designs several of violation data discovery algorithms by formal formula, which can obtain inconsistent data to all target columns with condition attribute dependent no matter data is structured (SQL) or unstructured (NoSql), and gives 6 data cleaning methods based on these algorithms.Keywords: Data cleaning, dependency rules, violation data discovery, data repair.
Procedia APA BibTeX Chicago EndNote Harvard JSON MLA RIS XML ISO 690 PDF Downloads 261193 Trade Openness and Its Effects on Economic Growth in Selected South Asian Countries: A Panel Data Study
Authors: Samra Bajwa, Muhammad W. Siddiqi
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The study investigates the causal link between trade openness and economic growth for four South Asian countries for period 1972-1985 and 1986-2007 to examine the scenario before and after the implementation of SAARC. Panel cointegration and FMOLS techniques are employed for short run and long run estimates. In 1972-85 short run unidirectional causality from GDP to openness is found whereas, in 1986-2007 there exists bi-directional causality between GDP and openness. The long run elasticity magnitude between GDP and openness contains negative sign in 1972-85 which shows that there exists long run negative relationship. While in time period 1986-2007 the elasticity magnitude has positive sign that indicates positive causation between GDP and openness. So it can be concluded that after the implementation of SAARC overall situation of selected countries got better. Also long run coefficient of error term suggests that short term equilibrium adjustments are driven by adjustment back to long run equilibrium.Keywords: Causality, Economic Growth, Panel Co-integration, SAARC, Trade Openness.
Procedia APA BibTeX Chicago EndNote Harvard JSON MLA RIS XML ISO 690 PDF Downloads 264592 Model Checking Consistency of UML Diagrams Using Alloy
Authors: Akie Nimiya, Tomoyuki Yokogawa, Hisashi Miyazaki, Sousuke Amasaki, Yoichiro Sato, Michiyoshi Hayase
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In this paper, we proposed a method for detecting consistency violation between UML state machine diagrams and communication diagrams using Alloy. Using input language of Alloy, the proposed method expresses system behaviors described by state machine diagrams, message sequences described by communication diagrams, and a consistency property. As a result of application for an example system, we confirmed that consistency violation could be detected using Alloy correctly.
Keywords: Model checking, UML, state machine diagrams, communication diagram, alloy.
Procedia APA BibTeX Chicago EndNote Harvard JSON MLA RIS XML ISO 690 PDF Downloads 158191 Symbolic Model Checking of Interactions in Sequence Diagrams with Combined Fragments by SMV
Authors: Yuka Kawakami, Tomoyuki Yokogawa, Hisashi Miyazaki, Sousuke Amasaki, Yoichiro Sato, Michiyoshi Hayase
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In this paper, we proposed a method for detecting consistency violation between state machine diagrams and a sequence diagram defined in UML 2.0 using SMV. We extended a method expressing these diagrams defined in UML 1.0 with boolean formulas so that it can express a sequence diagram with combined fragments introduced in UML 2.0. This extension made it possible to represent three types of combined fragment: alternative, option and parallel. As a result of experiment, we confirmed that the proposed method could detect consistency violation correctly with SMV.
Keywords: UML, model checking, SMV, sequence diagram.
Procedia APA BibTeX Chicago EndNote Harvard JSON MLA RIS XML ISO 690 PDF Downloads 146890 Trade Policy and Economic Growth of Turkey in Global Economy: New Empirical Evidences
Authors: Pınar Yardımcı
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This paper tries to answer to the questions whether or not trade openness causes economic growth and trade policy changes are good for Turkey as a developing country in global economy before and after 1980. We employ Johansen co-integration and Granger causality tests with error correction modeling based on vector autoregressive. Using WDI data from the pre-1980 and the post-1980, we find that trade openness and economic growth are cointegrated in the second term only. Also the results suggest a lack of long-run causality between our two variables. These findings may imply that trade policy of Turkey should concentrate more on extra complementary economic reforms.Keywords: Globalization, Trade Policy, Economic Growth, Openness, Co-integration, Turkey.
Procedia APA BibTeX Chicago EndNote Harvard JSON MLA RIS XML ISO 690 PDF Downloads 195289 A Coherent Relationship between EconomicGrowth and Unemployment: An Empirical Evidence from Pakistan
Authors: T. Hussain, M. W. Siddiqi, A. Iqbal
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The study is aimed to test causal relationship between growth and unemployment, using time series data for Pakistan from 1972 to 2006. Growth is considered to be a pathway to decrease the level of unemployment. Unemployment is a social and political issue. It is a phenomenon where human resources are wasted leading to deacceleration in growth. Johanson Cointegration shows that there is long run relationship between growth and unemployment. For short run dynamics and causality, the study utilizes Vector Error Correction Model (VECM). The results of VECM indicate that there is short and long run causal relation between growth and unemployment including capital, labor and human capital as explanatory variables.Keywords: Economic Growth, Unemployment, Cointegrationand Causality.
Procedia APA BibTeX Chicago EndNote Harvard JSON MLA RIS XML ISO 690 PDF Downloads 317588 Traffic Violation Detection System based on RFID
Authors: S. Hajeb, M. Javadi, S. M. Hashemi, P. Parvizi
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Road Traffic Accidents are a major cause of disability and death throughout the world. The control of intelligent vehicles in order to reduce human error and boost ease congestion is not accomplished solely by the aid of human resources. The present article is an attempt to introduce an intelligent control system based on RFID technology. By the help of RFID technology, vehicles are connected to computerized systems, intelligent light poles and other available hardware along the way. In this project, intelligent control system is capable of tracking all vehicles, crisis management and control, traffic guidance and recording Driving offences along the highway.
Keywords: RFID, Intelligent highway, Traffic violation
Procedia APA BibTeX Chicago EndNote Harvard JSON MLA RIS XML ISO 690 PDF Downloads 1397987 Discontinuous Spacetime with Vacuum Holes as Explanation for Gravitation, Quantum Mechanics and Teleportation
Authors: Constantin Z. Leshan
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Hole Vacuum theory is based on discontinuous spacetime that contains vacuum holes. Vacuum holes can explain gravitation, some laws of quantum mechanics and allow teleportation of matter. All massive bodies emit a flux of holes which curve the spacetime; if we increase the concentration of holes, it leads to length contraction and time dilation because the holes do not have the properties of extension and duration. In the limited case when space consists of holes only, the distance between every two points is equal to zero and time stops - outside of the Universe, the extension and duration properties do not exist. For this reason, the vacuum hole is the only particle in physics capable of describing gravitation using its own properties only. All microscopic particles must 'jump' continually and 'vibrate' due to the appearance of holes (impassable microscopic 'walls' in space), and it is the cause of the quantum behavior. Vacuum holes can explain the entanglement, non-locality, wave properties of matter, tunneling, uncertainty principle and so on. Particles do not have trajectories because spacetime is discontinuous and has impassable microscopic 'walls' due to the simple mechanical motion is impossible at small scale distances; it is impossible to 'trace' a straight line in the discontinuous spacetime because it contains the impassable holes. Spacetime 'boils' continually due to the appearance of the vacuum holes. For teleportation to be possible, we must send a body outside of the Universe by enveloping it with a closed surface consisting of vacuum holes. Since a material body cannot exist outside of the Universe, it reappears instantaneously in a random point of the Universe. Since a body disappears in one volume and reappears in another random volume without traversing the physical space between them, such a transportation method can be called teleportation (or Hole Teleportation). It is shown that Hole Teleportation does not violate causality and special relativity due to its random nature and other properties. Although Hole Teleportation has a random nature, it can be used for colonization of extrasolar planets by the help of the method called 'random jumps': after a large number of random teleportation jumps, there is a probability that the spaceship may appear near a habitable planet. We can create vacuum holes experimentally using the method proposed by Descartes: we must remove a body from the vessel without permitting another body to occupy this volume.
Keywords: Border of the universe, causality violation, perfect isolation, quantum jumps.
Procedia APA BibTeX Chicago EndNote Harvard JSON MLA RIS XML ISO 690 PDF Downloads 123286 Determining the Direction of Causality between Creating Innovation and Technology Market
Authors: Liubov Evstigneeva
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In this paper an attempt is made to establish causal nexuses between innovation and international trade in Russia. The topicality of this issue is determined by the necessity of choosing policy instruments for economic modernization and transition to innovative development. The vector auto regression (VAR) model and Granger test are applied for the Russian monthly data from 2005 until the second quartile of 2015. Both lagged import and export at the national level cause innovation, the latter starts to stimulate foreign trade since it is a remote lag. In comparison to aggregate data, the results by patent’s categories are more diverse. Importing technologies from foreign countries stimulates patent activity, while innovations created in Russia are only Granger causality for import to Commonwealth of Independent States.
Keywords: Export, import, innovation, patents.
Procedia APA BibTeX Chicago EndNote Harvard JSON MLA RIS XML ISO 690 PDF Downloads 119685 Environmental Impact of Trade Sector Growth: Evidence from Tanzania
Authors: Mosses E. Lufuke
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This paper attempted to investigate whether there is Granger-causality running from trade to environment as evidenced in the changing climatic condition and land degradation. Using Tanzania as the reference, VAR-Granger-causality test was employed to rationalize the conundrum of causal-effect relationship between trade and environment. The changing climatic condition, as the proxy of both nitrous oxide emissions (in thousand metric tons of CO2 equivalent) and land degradation measured by the size of arable land were tested against trade using both exports and imports variables. The result indicated that neither of the trade variables Granger-cause the variability on gas emissions and arable land size. This suggests the possibility that all trade concerns in relation to environment to have been internalized in domestic policies to offset any likely negative consequence.
Keywords: Trade, growth, impact, environment.
Procedia APA BibTeX Chicago EndNote Harvard JSON MLA RIS XML ISO 690 PDF Downloads 120484 An Analysis of the Relationship between Manufacturing Growth and Economic Growth in South Africa: A Cointegration Approach
Authors: Johannes T. Tsoku, Teboho J. Mosikari, Diteboho Xaba, Thatoyaone Modise
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This paper examines the relationship between manufacturing growth and economic growth in South Africa using quarterly data ranging from 2001 to 2014. The paper employed the Johansen cointegration to test the Kaldor’s hypothesis. The Johansen cointegration results revealed that there is a long run relationship between GDP, manufacturing, service and employment. The Granger causality results revealed that there is a unidirectional causality running from manufacturing growth to GDP growth. The overall findings of the study confirm that Kaldor’s first law of growth is applicable in South African economy. Therefore, investment strategies and policies should be alignment towards promoting growth in the manufacturing sector in order to boost the economic growth of South Africa.
Keywords: Cointegration, economic growth, Kaldor’s law, manufacturing growth.
Procedia APA BibTeX Chicago EndNote Harvard JSON MLA RIS XML ISO 690 PDF Downloads 184683 Contingency Screening Using Risk Factor Considering Transmission Line Outage
Authors: M. Marsadek, A. Mohamed
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Power system security analysis is the most time demanding process due to large number of possible contingencies that need to be analyzed. In a power system, any contingency resulting in security violation such as line overload or low voltage may occur for a number of reasons at any time. To efficiently rank a contingency, both probability and the extent of security violation must be considered so as not to underestimate the risk associated with the contingency. This paper proposed a contingency ranking method that take into account the probabilistic nature of power system and the severity of contingency by using a newly developed method based on risk factor. The proposed technique is implemented on IEEE 24-bus system.Keywords: Line overload, low voltage, probability, risk factor, severity.
Procedia APA BibTeX Chicago EndNote Harvard JSON MLA RIS XML ISO 690 PDF Downloads 122582 The Relationship of Private Savings and Economic Growth: Case of Croatia
Authors: Irena Palić
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The main objective of the research in this paper is to empirically assess the causal relationship of private savings and economic growth in the Republic of Croatia. Households’ savings are approximated by household deposits in banks, while domestic income is approximated by industrial production volume indices. Vector Autoregression model and Granger causality tests are used to in order to analyse the relationship among private savings and economic growth. Since ADF unit root tests have shown that both mentioned series are non stationary at levels, series are first differenced in order to become stationary. Therefore, VAR model is estimated with percentage change in private savings and percentage change in domestic income, which can be interpreted as economic growth in case of positive percentage change in domestic income. The Granger causality test has shown that there is no causal relationship among private savings and economic growth in Croatia. The impulse response functions have shown that the impact of shock in domestic income on private savings change is stronger than the impact of private saving on growth. Variance decompositions show that both economic growth and private saving change explain the largest part of its own forecast variance. The research has shown that the link between private savings economic and growth in Croatia is weak, what is in line with relevant empirical research in small open economies.
Keywords: Economic growth, Granger causality, innovation analysis, private savings, Vector Autoregression model.
Procedia APA BibTeX Chicago EndNote Harvard JSON MLA RIS XML ISO 690 PDF Downloads 144781 Oakes Test and Proportionality Test: Balance between the Practical Costs of Limiting Rights and the Benefits Arising from the Law
Authors: Rafael Tedrus Bento
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The analysis of proportionality as a test is raised as a basic foundation for the achievement of Fundamental Rights. We used legal dogmatics and empirical analysis to seek the expected results, from the reading of the RV Oakes trial by the Supreme Court of Canada. In cases involving freedom of expression, two tests are used to resolve disputes. The first examines whether, in fact, the case can be characterized as a violation of freedom of expression; the second assesses whether this violation can be justified by the reasonable limit clause. This test was defined in the RV Oakes trial by the Supreme Court of Canada, concluding with the Oakes Test, used worldwide as a proportionality test. Resulting is a proportionality between the effects of the limiting measure and the objective - the more serious the harmful effects of a measure, the more important the objective must be.
Keywords: Oakes, proportionality. fundamental rights, Canadian Charter of Rights and Freedoms.
Procedia APA BibTeX Chicago EndNote Harvard JSON MLA RIS XML ISO 690 PDF Downloads 85980 A Cultural-Sensitive Approach to Counseling a Samoan Sex Offender
Authors: Byron Malaela Sotiata Seiuli
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Sexual violation is any form of sexual violence, including rape, child molestation, incest, and similar forms of non-consensual sexual contact. Much of these acts of violation are perpetuated, but not entirely, by men against women and children. Moetolo is a Samoan term that is used to describe a person who sexually violates another while they or their family are asleep. This paper presents and discusses sexual abuse from a Samoan viewpoint. Insights are drawn from the authors’ counseling engagement with a Samoan sex offender as part of his probation review process. Relevant literature is also engaged to inform and provide interpretation to the therapeutic work carried out. This article seeks to contribute new understanding to patterned responses of some Samoan people to sexual abuse behaviors, and steps to remedy arising concerns with perpetrators seeking reintegration back into their communities.
Keywords: Fa’asamoa, Samoan cultural identity, sexual abuse and recovery, Uputāua therapeutic approach.
Procedia APA BibTeX Chicago EndNote Harvard JSON MLA RIS XML ISO 690 PDF Downloads 108779 Impact of the Real Effective Exchange Rate (Reer) on Turkish Agricultural Trade
Authors: Halil Fidan
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In this work, the autoregressive vectors are used to know dynamics of the Agricultural export and import, and the real effective exchange rate (REER). In order to analyze the interactions, the impulse- response function is used in decomposition of variance, causality of Granger as well as the methodology of Johansen to know the relations co integration. The REER causes agricultural export and import in the sense of Granger. The influence displays the innovations of the REER on the agricultural export and import is not very great and the duration of the effects is short. It displays that REER has an immediate positive effect, after the tenth year it displays smooth results on the agricultural export. Evidence of a vector exists co integration, In short run, REER has smaller effects on export and import, compared to the long-run effects.Keywords: Agricultural import, agricultural export, autoregressive causality of granger, impulse-response function, long run, short run.
Procedia APA BibTeX Chicago EndNote Harvard JSON MLA RIS XML ISO 690 PDF Downloads 257778 Energy Consumption and Economic Growth in South Asian Countries: A Co-integrated Panel Analysis
Authors: S. Noor, M. W. Siddiqi
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This study examines causal link between energy use and economic growth for five South Asian countries over period 1971-2006. Panel cointegration, ECM and FMOLS are applied for short and long run estimates. In short run unidirectional causality from per capita GDP to per capita energy consumption is found, but not vice versa. In long run one percent increase in per capita energy consumption tend to decrease 0.13 percent per capita GDP. i.e. Energy use discourage economic growth. This short and long run relationship indicate energy shortage crisis in South Asia due to increased energy use coupled with insufficient energy supply. Beside this long run estimated coefficient of error term suggest that short term adjustment to equilibrium are driven by adjustment back to long run equilibrium. Moreover, per capita energy consumption is responsive to adjustment back to equilibrium and it takes 59 years approximately. It specifies long run feedback between both variables.
Keywords: Energy consumption, Income, Panel co-integration, Causality.
Procedia APA BibTeX Chicago EndNote Harvard JSON MLA RIS XML ISO 690 PDF Downloads 331277 Granger Causal Nexus between Financial Development and Energy Consumption: Evidence from Cross Country Panel Data
Authors: Rudra P. Pradhan
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This paper examines the Granger causal nexus between financial development and energy consumption in the group of 35 Financial Action Task Force (FATF) Countries over the period 1988-2012. The study uses two financial development indicators such as private sector credit and stock market capitalization and seven energy consumption indicators such as coal, oil, gas, electricity, hydro-electrical, nuclear and biomass. Using panel cointegration tests, the study finds that financial development and energy consumption are cointegrated, indicating the presence of a long-run relationship between the two. Using a panel vector error correction model (VECM), the study detects both bidirectional and unidirectional causality between financial development and energy consumption. The variation of this causality is due to the use of different proxies for both financial development and energy consumption. The policy implication of this study is that economic policies should recognize the differences in the financial development-energy consumption nexus in order to maintain sustainable development in the selected 35 FATF countries.Keywords: Financial development, energy consumption, Panel VECM, FATF countries.
Procedia APA BibTeX Chicago EndNote Harvard JSON MLA RIS XML ISO 690 PDF Downloads 151376 A Study of Islamic Stock Indices and Macroeconomic Variables
Authors: Mohammad Irfan
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The purpose of this paper is to investigate the relationship among the key macroeconomic variables and Islamic stock market in India. This study is based on the time series data of financial years 2009-2015 to explore the consistency of relationship between macroeconomic variables and Shariah Indices. The ADF (Augmented Dickey–Fuller Test Statistic) and PP (Phillips–Perron Test Statistic) tests are employed to check stationarity of the data. The study depicts the long run relationship between Shariah indices and macroeconomic variables by using the Johansen Co-integration test. BSE Shariah and Nifty Shariah have uni-direct Granger causality. The outcome of VECM is significantly confirming the applicability of best fitted model. Thus, Islamic stock indices are proficiently working for the development of Indian economy. It suggests that by keeping eyes on Islamic stock market which will be more interactive in the future with other macroeconomic variables.Keywords: Indian shariah indices, macroeconomic variables, co-integration, Granger causality, Vector error correction model.
Procedia APA BibTeX Chicago EndNote Harvard JSON MLA RIS XML ISO 690 PDF Downloads 121875 Non-equilibrium Statistical Mechanics of a Driven Lattice Gas Model: Probability Function, FDT-violation, and Monte Carlo Simulations
Authors: K. Sudprasert, M. Precharattana, N. Nuttavut, D. Triampo, B. Pattanasiri, Y. Lenbury, W. Triampo
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The study of non-equilibrium systems has attracted increasing interest in recent years, mainly due to the lack of theoretical frameworks, unlike their equilibrium counterparts. Studying the steady state and/or simple systems is thus one of the main interests. Hence in this work we have focused our attention on the driven lattice gas model (DLG model) consisting of interacting particles subject to an external field E. The dynamics of the system are given by hopping of particles to nearby empty sites with rates biased for jumps in the direction of E. Having used small two dimensional systems of DLG model, the stochastic properties at nonequilibrium steady state were analytically studied. To understand the non-equilibrium phenomena, we have applied the analytic approach via master equation to calculate probability function and analyze violation of detailed balance in term of the fluctuation-dissipation theorem. Monte Carlo simulations have been performed to validate the analytic results.Keywords: Non-equilibrium, lattice gas, stochastic process
Procedia APA BibTeX Chicago EndNote Harvard JSON MLA RIS XML ISO 690 PDF Downloads 173174 Information Transmission between Large and Small Stocks in the Korean Stock Market
Authors: Sang Hoon Kang, Seong-Min Yoon
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Little attention has been paid to information transmission between the portfolios of large stocks and small stocks in the Korean stock market. This study investigates the return and volatility transmission mechanisms between large and small stocks in the Korea Exchange (KRX). This study also explores whether bad news in the large stock market leads to a volatility of the small stock market that is larger than the good news volatility of the large stock market. By employing the Granger causality test, we found unidirectional return transmissions from the large stocks to medium and small stocks. This evidence indicates that pat information about the large stocks has a better ability to predict the returns of the medium and small stocks in the Korean stock market. Moreover, by using the asymmetric GARCH-BEKK model, we observed the unidirectional relationship of asymmetric volatility transmission from large stocks to the medium and small stocks. This finding suggests that volatility in the medium and small stocks following a negative shock in the large stocks is larger than that following a positive shock in the large stocks.Keywords: Asymmetric GARCH-BEKK model, Asymmetric volatility transmission, Causality, Korean stock market, Spillover effect
Procedia APA BibTeX Chicago EndNote Harvard JSON MLA RIS XML ISO 690 PDF Downloads 1674