The Effect of Food Price Stabilization on Inflation in West Nusa Tenggara 2019-2023 | Author : Rani Ayu Anjani , Emi Salmah , Vici Handalusia | Abstract | Full Text | Abstract :One of the primary contributors to the inflation rate in West Nusa Tenggara Province is the fluctuation of prices for food commodities. The objective of this study is to examine the extent to which fluctuations in food commodity prices, including those of rice, red chili, and shallots, contribute to inflationary trends in West Nusa Tenggara. The data used is monthly data on inflation and food commodity prices from 2019-2023 obtained from BPS (Central Bureau of Statistics), DKP (Food Security Agency), and the Agriculture Office of West Nusa Tenggara Province. The analysis method used is vector autoregression (VAR), which includes stationarity test, VAR stability test, optimal lag test, cointegration test, VAR estimation, impulse response function (IRF), and variance decomposition. The results of this study indicate that in the short term premium rice prices, curly red chili prices, and shallots do not affect inflation. Conversely, in the long run, the variable price of shallots does not affect inflation, while the variable price of premium rice and curly red chili prices exert an influence on inflationary pressures in West Nusa Tenggara Province. The Variance Decomposition Test indicates that the price of curly red chili contributes 37.24 percent to inflation in the fifth period, while premium rice has an effect of 8.66 percent on inflation in the second period and shallots have an effect of 7.93 percent on inflation in the fifth period. |
| The Impact of Exchange Rate Fluctuations on Nigeria Capital Market Performance | Author : Ihugba, Okezie A. , Okoroafor, Stella N. | Abstract | Full Text | Abstract :This paper empirically investigates the impact of exchange rate fluctuations on Nigerian capital market performance by using yearly time series data during the period 1981–2022. We examined the long-run and short-run elasticities of variables using the bounds testing (ARDL) approach to cointegration. The results of the analysis show that exchange rate fluctuations negatively influence market capitalization, inflation consistently has a negative effect, and GDP shows a complex relationship with both positive and negative effects, suggesting initial gains followed by corrections. The effects of foreign direct investment (FDI) exhibit a range of outcomes, including notable negative consequences from previous investments. The paper concludes that the findings indicate that the negative impact of exchange rate fluctuations on market capitalization underscores the need for stable exchange rate policies. The government should promote GDP growth, lower exchange rate volatility, ensure stable inflation, attract foreign investment, rectify overvaluation, and establish a strong policy framework to maintain market performance and economic indicators. |
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