This paper investigates the effects of inflation rate, GDP, and real growth rate on interest rate in Canada for the period of 2003 to 2014. I employed the monthly data from Statistics Canada. By testing the unit root,...This paper investigates the effects of inflation rate, GDP, and real growth rate on interest rate in Canada for the period of 2003 to 2014. I employed the monthly data from Statistics Canada. By testing the unit root, cointegration, and Granger causality and using the econometric regression, I find that inflation rate, GDP, and real growth rate have significantly positive effects on interest rate.展开更多
This paper examines the Granger causal relationship between capital flows and economic growth in China over the period 1998Q1–2019Q2,allowing for real effective exchange rate(REER)effects.As parameter instability tes...This paper examines the Granger causal relationship between capital flows and economic growth in China over the period 1998Q1–2019Q2,allowing for real effective exchange rate(REER)effects.As parameter instability tests indicate structural changes,we use bootstrap rolling window causality tests,which suggest that the causal nexus between capital flows and GDP growth is time-varying.We find that the causal links between foreign direct investments(FDIs)and GDP growth are hardly affected by the REER,whereas the REER plays a more important role in affecting the causal connections between portfolio investments and other investments and GDP growth.Our results suggest that cumulative portfolio inflows and cumulative other investment inflows harm GDP growth,whereas cumulative portfolio outflows and cumula-tive other investment outflows positively affect GDP growth.展开更多
文摘This paper investigates the effects of inflation rate, GDP, and real growth rate on interest rate in Canada for the period of 2003 to 2014. I employed the monthly data from Statistics Canada. By testing the unit root, cointegration, and Granger causality and using the econometric regression, I find that inflation rate, GDP, and real growth rate have significantly positive effects on interest rate.
文摘This paper examines the Granger causal relationship between capital flows and economic growth in China over the period 1998Q1–2019Q2,allowing for real effective exchange rate(REER)effects.As parameter instability tests indicate structural changes,we use bootstrap rolling window causality tests,which suggest that the causal nexus between capital flows and GDP growth is time-varying.We find that the causal links between foreign direct investments(FDIs)and GDP growth are hardly affected by the REER,whereas the REER plays a more important role in affecting the causal connections between portfolio investments and other investments and GDP growth.Our results suggest that cumulative portfolio inflows and cumulative other investment inflows harm GDP growth,whereas cumulative portfolio outflows and cumula-tive other investment outflows positively affect GDP growth.