In this study, we aim to investigate the relationship between interest rate and inflation rate in the context of the Fisher effect hypothesis for Fragile five economies. In this regard, we employ recently developed panel co-integration and panel causality test methods. The bi-directional causal relation between interest rate and inflation rate exists only in Brazil and Indonesia. On the other hand, there is no causation linkage in India. Results imply that Fisher effect exists only in Brazil and Indonesia.
Article History
JEL Classification Q43, F43, C23. Energy consumption as a determinant of economic growth is a matter that has been frequently discussed in recent years in the theory of economics. In this study, the relationship between energy consumption and economic growth in BRICS (Brazil, Russia, India, China and South Africa) countries from 1990 to 2013 analyzed by panel data analysis. According to the results of empirical analysis, conservation hypothesis in Russia and feedback hypothesis in Brazil and neutrality hypothesis in other countries are valid.
Contribution/ Originality:This study contributes in the existing literature by the countries selected.BRICS countries are a good example in terms of economic growth in our decade. In addition, the energy consumption is another level compared to the rest of the world in those countries. One of the basic questions, the link between energy consumption and the economic growth is responded in the article.
The fragile structure of the global economy in the last decades makes it necessary for policy makers to have consistent predictions on the future values of the commodities and assets and also exchange rates. The fact that it is still the biggest source of energy, oil, has a crucial importance for the real economy and even financial markets. In this study, the relation of the real oil price and the real exchange rate in Romania will be investigated for the period of 2004:4 to 2014:10 using monthly data. Results in the tests suggest that Romania should consider the real oil price and real exchange rate causality due to the fact that there is a significant causality between the variables.
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