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This paper investigates the possibility of Granger causality between foreign direct investment and financial development in 48 sub-Saharan African countries from 1960 to 2020. For a technical reason, based on their wealth in 2020, the countries were classified as low income, middle income, and high-income countries. The three panels of twenty-three, twenty-four, and one countries, respectively, are examined collectively and then separately. Granger causality is tested with a panel data approach. The results indicate a single instance of two-way Granger causality between financial development indicators and FDI, both for the full sample and for the subsamples. In contrast, several cases of one-way causality are identified.

Keywords: Granger causality, foreign direct investment, financial development,

Jel Classification: C23, F23, F36.

Ebene Ndesse Axelle Maryline (2022). Granger Causality between Foreign Direct Investment and Financial Development in Sub-Saharan African Countries. Indian Journal of Global Economics and Business, Vol. 1, No. 2, pp. 5369.

What determines investment is a much analysed policy question all around the world. Growth and past investments are the primary policy variable used to stimulate current investment. But there is much difference in opinions among policymakers regarding which policy instrument should be emphasised more increase investment. In this analysis, the accelerator theorem of Koyck is validated with data from the Annual Survey of Industries (ASI) by MOSPI. To overcome the problem of the unit root process in data, this analysis employed the ARDL bound test approach to analyse data. Our research found that profit and output affect firms’ gross fixed capital formation, while the output is the only variable affecting the firm’s investments in the long run. In the short and long run, the bank lending rate doesn’t impact the firm’s investment decision much. This work shows some light on the debate between output and past investments. As per the results of my work, past investment also doesn’t have much impact on the firm’s investment behaviour. This may be because fixed capital investment is a longterm process, and its effects cannot be felt in the short or medium run.

Keywords: Investments, Output Gap, Manufacturing Firms, Interest Rate, Profits

JEL Code: E22, E61, D22

Nabeel Asharaf (2022). Determinants of Manufacturing Sector Investment in India: An ARDL Bound test Approach. Indian Journal of Global Economics and Business, Vol. 1, No. 2, pp. 7186.

Based on secondary data, the study revealed that the economic reforms, introduced in the early 90s in India, affected both exports and imports positively. Balance of trade remained negative during post reforms period because of higher imports over exports. Imports increased in the post reforms period because of liberalizing policies and also easy availability of quality goods at lower prices in the international markets. There is no doubt about it that economic reforms have affected Indian economy positively but the objective for which this process was initiated has not been achieved yet. Economic reforms have brought shift in the composition of exports from primary products to manufacturing products which is considered to be positive outcome of these reforms. Net foreign direct investment and net foreign portfolio investment also got affected by the economic reforms.

Keywords: Economic reforms, Balance of Trade, FDI, FPI, Exports, Imports, Trade deficit

JEL Code: F21, F62, F68, G11

Ajay Sood (2022). Analysis of Balance of Trade and Foreign Investment Since Economic Reforms in India. Indian Journal of Global Economics and Business, Vol. 1, No. 2, pp. 87-102.

In this study, we examined the effect of crypto currency transactions on ICT businesses in Uyo with the objectives of investigating the determinants of crypto currency ownership among ICT businesses and the effect of crypto currency transactions on their business performance through a survey of 60 specific ICT businesses within Uyo. Logit regression was used to examine the determinants of crypto currency ownership among ICT businesses while spearman’s rank correlation was used to examine the effect of crypto currency transactions on their business performance. The survey data indicates that over 95 percent of respondents are aware of the existence of crypto currencies and over 60 percent says they have good knowledge of crypto currencies while majority of those who own crypto currencies are those with good knowledge of crypto currencies. Knowledge of crypto currencies, low transaction cost, transaction security, and the expected impact of crypto currencies on the monetary system were identified as significant determinants of crypto currency ownership while the rank correlation coefficient of 0.43 shows a moderate positive correlation between crypto currency transaction and business performance. It is recommended that public and private institutions should invest more in financial technology and consider ways to take advantage of crypto currency technology

Keywords: Crypto Currency, Blockchain, Mining, ICT Businesses

Uduak Michael Ekong, Emmanuel Ogbe & Samuel Effiong Isaac (2022). Does Crytocurrency Transactions Benefit ICT Business in Uyo Metropolis: Evidence from a Field Survey. Indian Journal of Global Economics and Business, Vol. 1, No. 2, pp. 103130.

As global investors diversify their portfolios across currencies and national stock markets, the exchange rate risk and its association with the local stock market is an important component of the overall portfolio risk. This paper empirically analyses the effect of exchange rate volatility on stock market return volatility from Indiaʹs perspective, applying ARCH and GARCH estimation on daily data of the BSE SENSEX stock market index and the exchange rate of US dollar/rupee, British pound/rupee, Euros/rupee for six years from January 2010 to December 2015. The estimates reveal that the volatility of the Euro/rupee exchange rate has a significant positive effect on BSE SENSEX return volatility while the effect of the volatility of the US dollar/rupee and Britih pound/rupee exchange rates are insignificantly negative. The larger GARCH parameter over the ARCH term implies that the volatility of stock returns is more sensitive to its own lagged values than to its new surprises. There exists a highly persistent effect of shocks to the BSE SENSEX stock returns and the response to volatility decays at a slower rate.

Keywords: Exchange rate, stock market return, volatility, ARCH and GARCH estimation

T. Lakshmanasamy (2022). The Relationship between External and Domestic Markets in India: ArchGarch Estimation of the Causal Effects of Volatilities in the Exchange Rate and the Stock Market. Indian Journal of Global Economics and Business, Vol. 1, No. 2, pp. 131147.