Political Instability, Investment and Economic Growth | Chapter 13 | Emerging Issues and Development in Economics and Trade Vol. 2

The objective of this chapter is to identify the effect of political instability on investment and economic growth. By using a dynamic balanced panel data model applied on annual data from 11 countries from the Middle East and North Africa (MENA) region over the period of 2000 to 2009. The political instability’ effect on the contribution of investment to economic growth has been the subject of a second empirical study using a simultaneous equation model conducted on a sample of 33 countries over the period 2000-2015.The main outcomes drawn by these two empirical tests prove that there is no effect of political instability on investment and economic growth and a negative interaction between political instability and investment. This finding confirms the idea that the importance of political institutions lies in the preparation of good economic institutions. Thus, political institutions indirectly influence economic performance.

Author(s) Details

Zouhaier Hadhek
Higher Institut of Management (ISG) of Gabès, Tunisia.

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Impact of Interest Rate on Portfolio Management in Nigeria | Chapter 04 | Emerging Issues and Development in Economics and Trade Vol. 1

This study carried out an investigation on the impact of interest rate on portfolio management in Nigeria. Specifically the study analyzed the impact of interest rate on both long term and short term portfolio investments in Nigeria using secondary data sourced from Central bank of Nigeria statistics bulletin and National bureau of statistics for the periods covering 1985 to 2014. The study employed the techniques of co-integration and error correction model, it was discovered that on the long run interest rate specifically prime lending rate significantly influenced portfolio management both on long and short term basis and that total savings exert significant positive impact on the portfolio investment both on long and short term basis. Hence the study recommended that monetary authorities should ensure that the nexus between interest rate and portfolio management is taken into consideration in the process of policy formulations.

Author(s) Details

Ademola E. Ayodele
Department of Banking and Finance, Afe Babalola University, Ado-Ekiti, Nigeria.

Babatunde Afolabi
Department of Economics, Afe Babalola University, Ado Ekiti, Nigeria.

Awoniyi C. Olaoye
Department of Banking and Finance, Afe Babalola University, Ado-Ekiti, Nigeria.

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View Volume: https://doi.org/10.9734/bpi/eidet/v1