Crises are often forks into the unknown. When it became increasingly clear at the beginning of 2020 that a very serious wave of infection with a new type of virus was developing in the Chinese region of Wuhan, this was initially only of secondary interest from an economic point of view. At most, the supply chains of companies that are based on preliminary products from or sales to this region seemed to be temporarily endangered by these medical problems. No one expected significant macroeconomic effects, even on a global scale. So far, economic crises have only arisen for economic reasons. This context given the monetary policy on a European level and fiscal policy measures on a German governemental level taken to combat the economic consequences of the so-called “Corona crisis” are presented and in addition their usefulness and impact subsequently assessed.
{"title":"Monetary and Fiscal Policy Measures in the Corona Crisis - Consideration for Germany","authors":"Sebastian Wenning","doi":"10.22158/jepf.v8n2p151","DOIUrl":"https://doi.org/10.22158/jepf.v8n2p151","url":null,"abstract":"Crises are often forks into the unknown. When it became increasingly clear at the beginning of 2020 that a very serious wave of infection with a new type of virus was developing in the Chinese region of Wuhan, this was initially only of secondary interest from an economic point of view. At most, the supply chains of companies that are based on preliminary products from or sales to this region seemed to be temporarily endangered by these medical problems. No one expected significant macroeconomic effects, even on a global scale. So far, economic crises have only arisen for economic reasons. This context given the monetary policy on a European level and fiscal policy measures on a German governemental level taken to combat the economic consequences of the so-called “Corona crisis” are presented and in addition their usefulness and impact subsequently assessed.","PeriodicalId":73718,"journal":{"name":"Journal of economics and public finance","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2022-05-24","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"83975052","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Venture capital led by Bitcoin and gold has become increasingly popular in the past several years, so the research of cryptocurrencies (such as Bitcoin) becomes deeper and deeper. Many researchers have studied the collaborative investment of bitcoin and gold, which is an expective portfolio. In this paper, the authors constructed a systematic model, achieving the combination among prediction, making strategies, solving profits, and evaluation. All the study in this paper is based on the given data and constructed model with accurate references.In this paper, the authors selected the long short-term memory model (LSTM) as the basis, then designed two models called the gold price prediction model (GPPM) and the Bitcoin price prediction model (BPPM) to estimate the price of both gold and Bitcoin, standing as a trader, not a “god economist”. The error analysis shows a good performance of GPPM and BPPM, and it gives the authors confidence to make strategies and calculate final profits (investment worth).Unambiguously, the final goal of this question is to maximize the total assets (profits), so the author set up a single objective optimization model (SOOM) called the trading strategy model (TSM). The total constraint conditions are divided into six directions, including the basic trading conditions, the evaluation of financial risk, and the difference between gold and Bitcoin. Additionally, the costumers with different trading risk tolerance will acquire different assets finally, which indicates that the prudent policy generally can lead to a better result. After calculation, the asset on 2021/9/10 is about 1.59×108 USD, a considerable number.The evaluation of TSM has two parts, one is the disturbance test. This test randomly sets that several days’ trading does not occur, then has a comparison between the original model prices and the prices after disturbance. The result proves that the strategy predicted by TSM is the best strategy. The result of the sensitivity test in section 4 finds the polynomial relationship between the assets and the transaction costs. Under current conditions, the final assets will decrease by 4.2% if the transaction costs of gold increase by 1%, and will increase by 2.1% if the transaction costs of bitcoin increase by 1%.Finally, the authors wrote a memorandum for different customers & traders. We sincerely hope the memorandum can help them in the near future.
{"title":"Bitcoin vs. Gold: Who is the Better Choice for Trading?","authors":"Cangshu Li, Zixin Jiang, Yinuo Liu, Yu Dang, Yuhan Wang, R. Yu","doi":"10.22158/jepf.v8n2p135","DOIUrl":"https://doi.org/10.22158/jepf.v8n2p135","url":null,"abstract":"Venture capital led by Bitcoin and gold has become increasingly popular in the past several years, so the research of cryptocurrencies (such as Bitcoin) becomes deeper and deeper. Many researchers have studied the collaborative investment of bitcoin and gold, which is an expective portfolio. In this paper, the authors constructed a systematic model, achieving the combination among prediction, making strategies, solving profits, and evaluation. All the study in this paper is based on the given data and constructed model with accurate references.In this paper, the authors selected the long short-term memory model (LSTM) as the basis, then designed two models called the gold price prediction model (GPPM) and the Bitcoin price prediction model (BPPM) to estimate the price of both gold and Bitcoin, standing as a trader, not a “god economist”. The error analysis shows a good performance of GPPM and BPPM, and it gives the authors confidence to make strategies and calculate final profits (investment worth).Unambiguously, the final goal of this question is to maximize the total assets (profits), so the author set up a single objective optimization model (SOOM) called the trading strategy model (TSM). The total constraint conditions are divided into six directions, including the basic trading conditions, the evaluation of financial risk, and the difference between gold and Bitcoin. Additionally, the costumers with different trading risk tolerance will acquire different assets finally, which indicates that the prudent policy generally can lead to a better result. After calculation, the asset on 2021/9/10 is about 1.59×108 USD, a considerable number.The evaluation of TSM has two parts, one is the disturbance test. This test randomly sets that several days’ trading does not occur, then has a comparison between the original model prices and the prices after disturbance. The result proves that the strategy predicted by TSM is the best strategy. The result of the sensitivity test in section 4 finds the polynomial relationship between the assets and the transaction costs. Under current conditions, the final assets will decrease by 4.2% if the transaction costs of gold increase by 1%, and will increase by 2.1% if the transaction costs of bitcoin increase by 1%.Finally, the authors wrote a memorandum for different customers & traders. We sincerely hope the memorandum can help them in the near future.","PeriodicalId":73718,"journal":{"name":"Journal of economics and public finance","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2022-05-23","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"76727203","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
This study is conducted to evaluate and analyze factors affecting the capital structure of real estate joint-stock companies listed on Vietnam’s stock exchange for more than 5 years or more. The research uses a regression model for table data in which data is collected from the consolidated financial statements and other information of 55 joint-stock companies in the real estate industry from the period 2015 - 2019. The result indicates that factors such as firm size, age of the Chairman of the Board and return on equity (ROE) have a positive effect on capital structure. In contrast, factors such as operating time, gender, liquidity, asset turnover ratio, and return on total assets (ROA) have a negative impact on the capital structure of real estate joint-stock companies. In general, the women-chaired enterprises have a higher debt ratio than those of males. However, the higher age of the men-chaired enterprises, the higher the debt ratio their enterprises have compared to women-chaired enterprises.
{"title":"Factors Affecting on the Capital Structure of Real Estate Joint-Stock Companies Listed on Vietnam’s Stock Exchange","authors":"H. Thoa, N. M. Hung, Phan Thi Hai Ha","doi":"10.22158/jepf.v8n2p121","DOIUrl":"https://doi.org/10.22158/jepf.v8n2p121","url":null,"abstract":"This study is conducted to evaluate and analyze factors affecting the capital structure of real estate joint-stock companies listed on Vietnam’s stock exchange for more than 5 years or more. The research uses a regression model for table data in which data is collected from the consolidated financial statements and other information of 55 joint-stock companies in the real estate industry from the period 2015 - 2019. The result indicates that factors such as firm size, age of the Chairman of the Board and return on equity (ROE) have a positive effect on capital structure. In contrast, factors such as operating time, gender, liquidity, asset turnover ratio, and return on total assets (ROA) have a negative impact on the capital structure of real estate joint-stock companies. In general, the women-chaired enterprises have a higher debt ratio than those of males. However, the higher age of the men-chaired enterprises, the higher the debt ratio their enterprises have compared to women-chaired enterprises.","PeriodicalId":73718,"journal":{"name":"Journal of economics and public finance","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2022-05-19","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"87845055","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
With the escalation of the science and technology war against China, the Committee on Foreign Investment in the United States (CFIUS) continues to expand its powers with the support of Congressional legislation, and plays an increasingly important role in the science and technology war against China. The committee strictly restricts Chinese technology companies’ investment in the United States by means of routine review, case tracing, whitelisting, and long-arm jurisdiction, preventing China from acquiring advanced American technology through investment channels in the United States, so as to curb China’s high-tech development and maintain American technological hegemony. The goal of CFIUS’s review of Chinese companies’ investment in the United States has shown trends such as generalization of security, joint action, focus on emerging fields, and strengthening of law enforcement capabilities China should pay attention to the scope of CFIUS expansion and behavioral trends, and take corresponding countermeasures to avoid and reduce investment risks in the United States.
{"title":"The Role of Committee on Foreign Investment in the United States in the Tech War with China","authors":"Wang Han, Liu Jianhua","doi":"10.22158/jepf.v8n2p104","DOIUrl":"https://doi.org/10.22158/jepf.v8n2p104","url":null,"abstract":"With the escalation of the science and technology war against China, the Committee on Foreign Investment in the United States (CFIUS) continues to expand its powers with the support of Congressional legislation, and plays an increasingly important role in the science and technology war against China. The committee strictly restricts Chinese technology companies’ investment in the United States by means of routine review, case tracing, whitelisting, and long-arm jurisdiction, preventing China from acquiring advanced American technology through investment channels in the United States, so as to curb China’s high-tech development and maintain American technological hegemony. The goal of CFIUS’s review of Chinese companies’ investment in the United States has shown trends such as generalization of security, joint action, focus on emerging fields, and strengthening of law enforcement capabilities China should pay attention to the scope of CFIUS expansion and behavioral trends, and take corresponding countermeasures to avoid and reduce investment risks in the United States.","PeriodicalId":73718,"journal":{"name":"Journal of economics and public finance","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2022-05-16","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"84488943","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
China has imported the Anglo-American law of fiduciary duty into its corporate statute. I argue that fiduciary duty confronts a problem. Its transplantation is into the rich cultural soil of guanxi, a soil that is incompatible with the equally richly developed culture of fiduciary duty.This is the first paper to examine the relationship between fiduciary duty and guanxi. I conclude that, while fiduciary duty may take root in the limited (but important) context of self-dealing transactions, it is likely to fail in its essential function of guiding fiduciary behavior in the presence of a guanxi relationship.
{"title":"Fiduciary Duty in a Guanxi Society","authors":"E. Mitchell","doi":"10.22158/jepf.v8n2p75","DOIUrl":"https://doi.org/10.22158/jepf.v8n2p75","url":null,"abstract":"China has imported the Anglo-American law of fiduciary duty into its corporate statute. I argue that fiduciary duty confronts a problem. Its transplantation is into the rich cultural soil of guanxi, a soil that is incompatible with the equally richly developed culture of fiduciary duty.This is the first paper to examine the relationship between fiduciary duty and guanxi. I conclude that, while fiduciary duty may take root in the limited (but important) context of self-dealing transactions, it is likely to fail in its essential function of guiding fiduciary behavior in the presence of a guanxi relationship.","PeriodicalId":73718,"journal":{"name":"Journal of economics and public finance","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2022-05-10","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"86681088","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Micro, small and medium enterprises (MSMEs) have become an important force in driving the country’s market economy in the 21st century. However, because of the following drawbacks: i.e. single enterprise capital chain, unstable economy, high risk, etc., banks will take many risks if they lend to MSMEs. Therefore, it is necessary to build a sound bank credit decision system to promote the development of MSMEs. The analytic hierarchy process (AHP) is employed to classify the importance level such as credit rating and enterprise strength are used as first-grade indexes, and six indicators in terms of total sales and total profits are used as the second-grade indexes. Then, the eigenvalue method is used to obtain the importance weights of each level of indicators, and the weights of each influencing factor at each level are then calculated to achieve a quantitative analysis of credit risk and rating of each enterprise’s credit risk. This paper combines the existing loan pricing and loan interest rates to give preferential interest rates and higher loan amounts to enterprises with excellent credit risk ratings, and to give certain risky interest rates and lower loan amounts to enterprises with medium credit risk ratings.Based on the model, a quantitative analysis of the credit risk of 302 non-credit record enterprises is carried out and the bank’ credit strategy is provided when the total annual credit is 100 million yuan. Finally, this paper comprehensively considers the impact of credit risk and unexpected factors (e.g., the COVID-19) on enterprises, and provides the bank’s credit adjustment strategy when the total annual credit is 100 million yuan.
{"title":"Credit Decision Problems of MSMEs (Medium, Small and Micro-sized Enterprises)","authors":"Cangshu Li, Yuewen Dang, Yinuo Liu, Xiaorong Liu, Junhong Kang, Yanshan Liao","doi":"10.22158/jepf.v8n2p48","DOIUrl":"https://doi.org/10.22158/jepf.v8n2p48","url":null,"abstract":"Micro, small and medium enterprises (MSMEs) have become an important force in driving the country’s market economy in the 21st century. However, because of the following drawbacks: i.e. single enterprise capital chain, unstable economy, high risk, etc., banks will take many risks if they lend to MSMEs. Therefore, it is necessary to build a sound bank credit decision system to promote the development of MSMEs. The analytic hierarchy process (AHP) is employed to classify the importance level such as credit rating and enterprise strength are used as first-grade indexes, and six indicators in terms of total sales and total profits are used as the second-grade indexes. Then, the eigenvalue method is used to obtain the importance weights of each level of indicators, and the weights of each influencing factor at each level are then calculated to achieve a quantitative analysis of credit risk and rating of each enterprise’s credit risk. This paper combines the existing loan pricing and loan interest rates to give preferential interest rates and higher loan amounts to enterprises with excellent credit risk ratings, and to give certain risky interest rates and lower loan amounts to enterprises with medium credit risk ratings.Based on the model, a quantitative analysis of the credit risk of 302 non-credit record enterprises is carried out and the bank’ credit strategy is provided when the total annual credit is 100 million yuan. Finally, this paper comprehensively considers the impact of credit risk and unexpected factors (e.g., the COVID-19) on enterprises, and provides the bank’s credit adjustment strategy when the total annual credit is 100 million yuan.","PeriodicalId":73718,"journal":{"name":"Journal of economics and public finance","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2022-04-18","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"83609927","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
The sudden epidemic has a huge impact on the global economy. This paper takes the International crude oil and the SSE Industry Index as the research objects to explore the linkage between the two markets under COVID-19. We use DCC-GARCH to study the dynamic correlation between the two markets before and after the outbreak. The PCA-GARCH model is further used to verify whether there is a spillover effect between the two markets, and finally the time-varying spillover index is used to quantify the spillover effect. The results show that the epidemic has strengthened the overall connection between the two markets. In particular, the correlation between SSE Public and International crude oil has the greatest impact. During the epidemic, crude oil has the most volatility, and most of the volatility series can reach the peak state. There are positive spillover effects among SSE Material, SSE Energy, and SSE Industry. In the total spillover index table, the conclusion of the PCA-GARCH model is verified, that is, the spillover index value is larger when there is a spillover effect. After the outbreak, the total spillover index rose by 10%. Before and after the outbreak, crude oil changed from a volatility sender to a receiver.
{"title":"Analysis of the Linkage between International Crude Oil and Chinese Industry Sector Indices under the COVID-19","authors":"Li Yu, Yuanying Jiang","doi":"10.22158/jepf.v8n2p26","DOIUrl":"https://doi.org/10.22158/jepf.v8n2p26","url":null,"abstract":"The sudden epidemic has a huge impact on the global economy. This paper takes the International crude oil and the SSE Industry Index as the research objects to explore the linkage between the two markets under COVID-19. We use DCC-GARCH to study the dynamic correlation between the two markets before and after the outbreak. The PCA-GARCH model is further used to verify whether there is a spillover effect between the two markets, and finally the time-varying spillover index is used to quantify the spillover effect. The results show that the epidemic has strengthened the overall connection between the two markets. In particular, the correlation between SSE Public and International crude oil has the greatest impact. During the epidemic, crude oil has the most volatility, and most of the volatility series can reach the peak state. There are positive spillover effects among SSE Material, SSE Energy, and SSE Industry. In the total spillover index table, the conclusion of the PCA-GARCH model is verified, that is, the spillover index value is larger when there is a spillover effect. After the outbreak, the total spillover index rose by 10%. Before and after the outbreak, crude oil changed from a volatility sender to a receiver.","PeriodicalId":73718,"journal":{"name":"Journal of economics and public finance","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2022-03-31","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"78460264","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
During the late 1980s and early 1990s, the Chinese economy experienced painful tradeoffs between high economic growth and low inflation: stimulating GDP growth would cause severe inflation spikes, while controlling inflation rates would seriously contract GDP growth. In 1994, the Chinese government initiated a series of macroeconomic reforms to revitalize the Chinese economy. After that, the inflation dropped steadily and eventually achieved the “soft landing” in 1996. The high GDP growth rate has also been stabilized. This research elucidates two core components embedded in China’s 1994 program: currency sterilization and fiscal (revenue) centralization. The results suggest that classic economic models with nominal rigidity postulation may not be compatible with the Chinese economy.
{"title":"China’s Currency Sterilization and Fiscal Centralization","authors":"Hailong Jin","doi":"10.22158/jepf.v8n2p21","DOIUrl":"https://doi.org/10.22158/jepf.v8n2p21","url":null,"abstract":"During the late 1980s and early 1990s, the Chinese economy experienced painful tradeoffs between high economic growth and low inflation: stimulating GDP growth would cause severe inflation spikes, while controlling inflation rates would seriously contract GDP growth. In 1994, the Chinese government initiated a series of macroeconomic reforms to revitalize the Chinese economy. After that, the inflation dropped steadily and eventually achieved the “soft landing” in 1996. The high GDP growth rate has also been stabilized. This research elucidates two core components embedded in China’s 1994 program: currency sterilization and fiscal (revenue) centralization. The results suggest that classic economic models with nominal rigidity postulation may not be compatible with the Chinese economy.","PeriodicalId":73718,"journal":{"name":"Journal of economics and public finance","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2022-03-25","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"81206687","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Space Small enterprises play an important role in China’s economic development. Their emergence has played a significant role in increasing employment, stabilizing society, and innovating science and technology. Taking small enterprises in Ningbo as an example, this study used Amartya Sen’s method to study the availability of financing. Firstly, the financing availability of small enterprises was analyzed from two aspects of resource endowment and monetary resources. Then, an empirical test was made on the financing availability of small enterprises. Finally, we put forward relevant suggestions for the development of small enterprises according to the current situation and empirical conclusions.
{"title":"Research on Financing Availability of Small Enterprises in Ningbo Based on Amartya Sen’s Method","authors":"Miao Huiyong","doi":"10.22158/jepf.v8n1p103","DOIUrl":"https://doi.org/10.22158/jepf.v8n1p103","url":null,"abstract":"Space Small enterprises play an important role in China’s economic development. Their emergence has played a significant role in increasing employment, stabilizing society, and innovating science and technology. Taking small enterprises in Ningbo as an example, this study used Amartya Sen’s method to study the availability of financing. Firstly, the financing availability of small enterprises was analyzed from two aspects of resource endowment and monetary resources. Then, an empirical test was made on the financing availability of small enterprises. Finally, we put forward relevant suggestions for the development of small enterprises according to the current situation and empirical conclusions.","PeriodicalId":73718,"journal":{"name":"Journal of economics and public finance","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2022-03-18","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"87061427","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Over the years, demand for electricity has continued to grow while supply has consistently declined. The shortages of electricity supply formed the major background for energy crisis in Nigeria. The reason for this is that, all efforts are concentrated at generating electricity from only two major sources, namely: hydropower and gas. Therefore, this study investigated the effects of electricity consumption and its implications on industrial performance in Nigeria. Time series data were used for the study, sourced from the Central Bank of Nigeria Annual Report, Statistical Bulletin, Publications of the International Monetary Fund and the National Bureau of Statistics which spanned from 1981 to 2019. The study employed Fully Modified Ordinary Least Squares Method and Descriptive Statistics to carry out the empirical analysis. The findings revealed that a unit rise in industrial electricity consumption and exchange rate contribute to industrial performance by 9.4% and 44% respectively. This indicator only reflects marginal impact of industrial performance in Nigeria compare to other countries. However, a percentage increase in gross fixed capital formation and gross domestic product reduced industrial performance by 0.018% and 0.020%. Meanwhile, capacity utilization signed positive but not statistically significant. The study concluded that irregular electricity supply has weakened industrial performance in Nigeria despite various energy resources available. Therefore, the study recommended well rounded energy mix option through government policies to complement the existing energy sources available in Nigeria, as well, as other renewable energy resources for industrial sector and domestic use.
{"title":"Electricity Consumption and Industrial Performance in Nigeria","authors":"C. Bassey, Oduneka, Anagha E., Imoh kingsley Ikpe","doi":"10.22158/jepf.v8n2p1","DOIUrl":"https://doi.org/10.22158/jepf.v8n2p1","url":null,"abstract":"Over the years, demand for electricity has continued to grow while supply has consistently declined. The shortages of electricity supply formed the major background for energy crisis in Nigeria. The reason for this is that, all efforts are concentrated at generating electricity from only two major sources, namely: hydropower and gas. Therefore, this study investigated the effects of electricity consumption and its implications on industrial performance in Nigeria. Time series data were used for the study, sourced from the Central Bank of Nigeria Annual Report, Statistical Bulletin, Publications of the International Monetary Fund and the National Bureau of Statistics which spanned from 1981 to 2019. The study employed Fully Modified Ordinary Least Squares Method and Descriptive Statistics to carry out the empirical analysis. The findings revealed that a unit rise in industrial electricity consumption and exchange rate contribute to industrial performance by 9.4% and 44% respectively. This indicator only reflects marginal impact of industrial performance in Nigeria compare to other countries. However, a percentage increase in gross fixed capital formation and gross domestic product reduced industrial performance by 0.018% and 0.020%. Meanwhile, capacity utilization signed positive but not statistically significant. The study concluded that irregular electricity supply has weakened industrial performance in Nigeria despite various energy resources available. Therefore, the study recommended well rounded energy mix option through government policies to complement the existing energy sources available in Nigeria, as well, as other renewable energy resources for industrial sector and domestic use.","PeriodicalId":73718,"journal":{"name":"Journal of economics and public finance","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2022-03-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"87866902","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
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