Papers by Saud M Al-tayeb
Dirasat: Administrative Sciences, 2014
The main objective of this study is to investigate the effect of Amman Stock Exchange (ASE) on
i... more The main objective of this study is to investigate the effect of Amman Stock Exchange (ASE) on
investment in Jordan during the period 1980-2011. In order to achieve this, the study uses the Vector Auto
Regression (VAR) model along with five tests: Granger causality test, Cusum stability test, Johansen
cointegration test, variance decomposition, and impulse response function test. The study applies two
models: An aggregate model which measures the effect of the ASE on investment, and a disaggregate
model that measures the effect of the three economic sectors in ASE (financial, industrial, and services) on
investment.
The study concludes that there is no significant effect of ASE activities on investment in the long run.
However, there is a positive significant effect of both financial and services sectors and that there is no
significant effect of the industrial sector on investment.
Furthermore, the study found that there is a unidirectional Granger causal relationship running from
investment to ASE while there is a unidirectional Granger causal relationship running from the financial
and services sectors to investment.
The study recommends that the government should follow a policy for encouraging investment through
concentrating on financial and services sectors and giving these two sectors the priority they deserve.
Dirasat: Administrative Sciences, 2011
"This study explained the impact of interest rate on time deposits on private consumption in Jord... more "This study explained the impact of interest rate on time deposits on private consumption in Jordan during 1976-
2004, by using Vector Auto Regression, VAR, model. The VAR model has directly been applied since there is no
co-integration. The main variables of the study are private consumption, which is one of the most important
components of GDP, and interest rate of time deposits; both expressed in real terms. The study applies Augmented
Dickey Fuller's test to check whether the variables are stationary or not. This test revealed that the interest rate on
time deposits was stationary while private consumption was not at the first level but it became stationary after
taking the first difference.Granger's causality test is applied to provide evidence on the direction of causality. This
test revealed that there was a causal relationship between the variables of the model. The Johansson's test for cointegration
is also applied, which revealed no co-integration between the variables of the model which was the
main reason for adopting the VAR model.For empirical analysis, two tools were employed: the first involved
analysis of variance decomposition, which shows the explanatory power of interest rate of private consumption
while the second dealt with the response function of the reaction. The latter gives evidence of the negative impact
of real interest rate on time deposits on real private consumption though not statistically significant at the 5%
level. To gain more credibility of the results, the study used two approaches: the reordering of variables in the
model and adding a third basic variable, which is real income per capita."
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Papers by Saud M Al-tayeb
investment in Jordan during the period 1980-2011. In order to achieve this, the study uses the Vector Auto
Regression (VAR) model along with five tests: Granger causality test, Cusum stability test, Johansen
cointegration test, variance decomposition, and impulse response function test. The study applies two
models: An aggregate model which measures the effect of the ASE on investment, and a disaggregate
model that measures the effect of the three economic sectors in ASE (financial, industrial, and services) on
investment.
The study concludes that there is no significant effect of ASE activities on investment in the long run.
However, there is a positive significant effect of both financial and services sectors and that there is no
significant effect of the industrial sector on investment.
Furthermore, the study found that there is a unidirectional Granger causal relationship running from
investment to ASE while there is a unidirectional Granger causal relationship running from the financial
and services sectors to investment.
The study recommends that the government should follow a policy for encouraging investment through
concentrating on financial and services sectors and giving these two sectors the priority they deserve.
2004, by using Vector Auto Regression, VAR, model. The VAR model has directly been applied since there is no
co-integration. The main variables of the study are private consumption, which is one of the most important
components of GDP, and interest rate of time deposits; both expressed in real terms. The study applies Augmented
Dickey Fuller's test to check whether the variables are stationary or not. This test revealed that the interest rate on
time deposits was stationary while private consumption was not at the first level but it became stationary after
taking the first difference.Granger's causality test is applied to provide evidence on the direction of causality. This
test revealed that there was a causal relationship between the variables of the model. The Johansson's test for cointegration
is also applied, which revealed no co-integration between the variables of the model which was the
main reason for adopting the VAR model.For empirical analysis, two tools were employed: the first involved
analysis of variance decomposition, which shows the explanatory power of interest rate of private consumption
while the second dealt with the response function of the reaction. The latter gives evidence of the negative impact
of real interest rate on time deposits on real private consumption though not statistically significant at the 5%
level. To gain more credibility of the results, the study used two approaches: the reordering of variables in the
model and adding a third basic variable, which is real income per capita."
investment in Jordan during the period 1980-2011. In order to achieve this, the study uses the Vector Auto
Regression (VAR) model along with five tests: Granger causality test, Cusum stability test, Johansen
cointegration test, variance decomposition, and impulse response function test. The study applies two
models: An aggregate model which measures the effect of the ASE on investment, and a disaggregate
model that measures the effect of the three economic sectors in ASE (financial, industrial, and services) on
investment.
The study concludes that there is no significant effect of ASE activities on investment in the long run.
However, there is a positive significant effect of both financial and services sectors and that there is no
significant effect of the industrial sector on investment.
Furthermore, the study found that there is a unidirectional Granger causal relationship running from
investment to ASE while there is a unidirectional Granger causal relationship running from the financial
and services sectors to investment.
The study recommends that the government should follow a policy for encouraging investment through
concentrating on financial and services sectors and giving these two sectors the priority they deserve.
2004, by using Vector Auto Regression, VAR, model. The VAR model has directly been applied since there is no
co-integration. The main variables of the study are private consumption, which is one of the most important
components of GDP, and interest rate of time deposits; both expressed in real terms. The study applies Augmented
Dickey Fuller's test to check whether the variables are stationary or not. This test revealed that the interest rate on
time deposits was stationary while private consumption was not at the first level but it became stationary after
taking the first difference.Granger's causality test is applied to provide evidence on the direction of causality. This
test revealed that there was a causal relationship between the variables of the model. The Johansson's test for cointegration
is also applied, which revealed no co-integration between the variables of the model which was the
main reason for adopting the VAR model.For empirical analysis, two tools were employed: the first involved
analysis of variance decomposition, which shows the explanatory power of interest rate of private consumption
while the second dealt with the response function of the reaction. The latter gives evidence of the negative impact
of real interest rate on time deposits on real private consumption though not statistically significant at the 5%
level. To gain more credibility of the results, the study used two approaches: the reordering of variables in the
model and adding a third basic variable, which is real income per capita."