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  • International Journal of Economics and Financial Research

    Online ISSN: 2411-9407
    Print ISSN: 2413-8533

    Frequency: Monthly


    Archives

    Volume 3 Number 8 August 2017

    Trend Changes in Stock Prices of Petrochemical Firms in the A-Share Market, China


    Pages: 149-156
    Authors: Gaolu Zou
    Abstract
    The paper proposes that the PetroChina listing event has significantly impacted the change in stock price trend of petrochemical firms. The study selected three firms for cases. The paper tested for the break date using both the Perron IO Model C and Zivot-Andrews Model C. Also, the study conducted a unit root test applying regular ADF and PP techniques. Data were monthly stock price series. Tests suggest that only one out of three petrochemical firm stock price series contains a break date, which occurred around 2007 and was very close to the PetroChina listing date (November 2007). The study concludes that the PetroChina listing has produced a significant shock to the stock prices on the trend function. A high degree of similarity with the PetroChina in one firm’s size and main businesses can account for the occurrence of a breakpoint on the firm’s stock price trend. Break-date tests for more petrochemical stock price series are needed to justify the proposition.



    Trend Analysis of Consumer Price Index: Useful Lessons for Business Decision Making in Ghana?


    Pages: 130-148
    Authors: Joseph Kofi Nkuah ; Eric Berko ; Clement Nangpiire
    Abstract
    Variations or irregular rise of consumer price index worldwide of which Ghana is no exception has affected many businesses in the country.  However, the obvious indicator of an inflationary situation is rising prices of consumer goods. On the basis of the above, the researchers decided to do a trend analysis on consumer price indices obtained from the Ghana Statistical Service to serve as a guide to the business community in Ghana. The main objective of the analysis is to determine the overall pattern in the data and to subsequently fit an appropriate trend for forecasting future values. The main statistical technique used in this work is time series analysis.  Based on the trend analysis carried out, the study revealed that, there was general upward trend in the CPIs in Ghana, collaborating an earlier research conducted by Ampofo. However, the shapes of graphs of the CPIs, showed a slight difference. Finally, forecast values or predictions for the CPIs were made for the year 2008.



    An Error Correction Model Analysis of the Effect of Total External Debt on the Nigerian Economy (1980–2015)


    Pages: 119-129
    Authors: Nwaoha, William Chimee ; Ejem, Chukwu Agwu ; Egwu, Charles Chukwudinma ; Ugoji-Eke, Patience Nnenna ; Nwabeke, Chidinma Elizabeth
    Abstract
    This study used error correction model (ECM) to analyse the effect of total external debt (TED) on the Nigerian economy proxied by gross domestic product (GDP) during the period 1980-2015. The data such as TED and GDP were obtained from Central Bank of Nigeria (CBN) statistical bulletin. The result of the finding revealed that total external debt exerts negative and significant influence on GDP. This implies that, as total external debt increases, GDP also decreases and vice versa. Therefore, the researcher recommends that any external loan obtained by the government should be channelled to productive projects that yield high on returns on investment rather than allocating the fund to finance dead-weight debt, hence, engendering sustainable economic growth in the economy.



    Analysis of Japan s Economic Growth Under the Condition of Extroversion Economy


    Pages: 114-118
    Authors: Wang Tao ; Ding Zhuqing
    Abstract
    Japan moved towards the road of economic export-oriented development, foreign trade and foreign investment increased rapidly after World War II, and the economy recovered rapidly and came to the forefront of the world. Then, what role did foreign capital and foreign trade play in the process of economic growth? Based on the import, export FDI and GDP data of Japan from 1996 to 2015, this paper uses eviews 7.2 and co-integration test to confirm the long-term co-integration relationship between GDP and import, export, FDI. The results show that the long-term equilibrium relationship between GDP and export is positive correlation, and GDP and import, FDI are negatively related long-term equilibrium relations. The influence of Japan’s export-oriented economy on economic growth is mainly through the form of export trade.