As an export commodity coffee industry contributes to the economies of both exporting and importing countries. The aim of the study involves competitiveness and determinant of coffee export in Ethiopia through the period of 1990–2018 observations. To explain the level of comparative advantage and competitiveness respectively Revealed Comparative Advantage and Syematric Revealed Comparative Advantage were employed. To capture determinans of coffee ARDL model with bound testing to co-integration approach was employed to investigate the long-run association between Ethiopian total coffee export in bags (60kg each) with domestic coffee production, world coffee price, real exchange rate, FDI, world coffee production and price ratio. Even though Ethiopia has the comparative advantage in the export of coffee, however, the share it in the international market low in amount and not inlined with RCA. Bound testing to co-integration approach result confirmed the existence of a long-run relationship between total coffee exports of Ethiopia with its independent variables. The analysis pointed out that in the long run the extent of domestic coffee production, world price, and real exchange rate positively and significantly affects total coffee export. However, FDI, price ratio, world production of coffee have negative & significant effects. In the short-run Ethiopian total coffee export defined as a positive significant function of domestic coffee production and real exchange rate positive but insignificant effect with Level of RCA and world price as well as a negative function of FDI, price ratio, and world production of coffee. Coefficient Error Correction Model (ECM (-1)) was negative and significant with a value of 134.4 % of the adjustment would make each year and return to its long-run equilibrium after 1.3 years. The policy implication calls for addressing issues of the combined effect of the policy setting, institutions, and market failures to avoid the evil effect of the sector.

This research paper aims to examine the relationship between CO2, temperature, area, fertilizers and rice production in Pakistan. This study used Augmented Dickey Fuller (ADF) and Phillips Perron (PP) unit root tests to check the order of integration of each variable. The cointegration analysis with ARDL bounds testing approach is used to examine the impact of climate change on rice production in Pakistan over time series data from the period 1968 to 2014. The parameter stability test of the model is also checked at the end. The results of estimation show that the important variables of the study are cointegrated demonstrating the presence of long-run association among them. Furthermore, climate change factors, e.g. CO2 and temperature have a long-run and short-run positive effect on the production of rice in Pakistan. This present work is original and it is first time empirically tested the impact of climate change on rice production in Pakistan. The annual time series data of 47 years enhances the validity of the empirical findings. The most fruitful finding of this research is that rice production in Pakistan is positively influenced by emission of carbon dioxide (CO2) at 5 percent significance level in both long-run and short-run.

In this study the impact of terrorist attacks on exchange rate is estimated. Particularly, the study focuses on Turkish terrorist attacks and its implication on Turkish lira versus pound sterling exchange rate. In order, to find the causal effect the study employed Autoregressive distributive lag (ARDL) bound testing approach as an estimation technique. Accordingly, the analysis reveals that terrorist attack has a negative impact on the exchange rate in both short and long-run. However, the negative effect of terrorism tends to be small in both the short-run and long-run. More precisely, terrorist attack depreciates the exchange rate between Turkish lira and pound sterling by approximately 0.00072 in the next trading day. The long-term effect also shows that terrorist attack depreciates the exchange rate on average by 0.00212.

Fostering innovation is considered one of the key policy priorities in most governments' agendas in developing countries, and foreign direct investment (FDI) is considered a principal resource for financing sustainable development, corresponding to 17 sustainable development goals (SDGs). This study analyzes the extent to which inward FDI affects innovation (proxied with patent applications) in Sri Lanka using secondary data from 1990 to 2019. We used the Autoregressive Distributed Lag (ARDL) cointegration procedure to examine the long-run relationships between variables. As per the study results, the coefficient of inward FDI is a negative sign while the coefficients of per capita gross domestic product (GDP) and high technology exports (HEX) show positive signs 2.142 and 0.414, respectively, and statistically significant in the long run. It is demonstrated that per capita GDP and high technology exports are an important variable in explaining technological innovation, and inward FDI and education expenditure (EDU) did not contribute towards widening technological innovation in Sri Lanka. Shaping the future of FDI in Sri Lanka is essential to foster innovation capability.

Oil revenues and external debt might have stimulated economic growth in the oil exporting countries via investment in capital projects. The paper estimated economic growth on oil revenues and external debt after controlling public investment and population growth over the period 1970-2015. Following the confirmation of the order of integration, our analysis is based on autoregressive distributed lag bound testing to cointegration approach. The key findings are that oil revenues and public investment contributes to Nigeria’s economic growth. However, our findings also indicate that external debt and population growth retards growth. The study suggests that minimizing fiscal deficits and unnecessarily foreign loans by creating tax avenues through the development of the non-oil sectors would reduce the dependency syndrome on a single commodity (oil) in Nigeria.

The study's motivation is to gauge the nexus between economic policy uncertainty and financial innovation for the period 2004M1 to 2018M12 in BRIC nations. For establishing a long-run cointegration study applied Autoregressive Distributed Lagged (ARDL) and asymmetry effects of economic policy uncertainty investigated following nonlinear framework known as NARDL. Furthermore, directional causality is established by performing a non-granger causality test. Cointegration test results of Fpss, Wpss, and tBDM confirmed the long-run association between EPU and financial innovation. On the other hand, the Wald test results proved asymmetry effects furring from EPU to financial innovation both in the long-run and short-run. Referring to asymmetry effects that positive and negative shocks in financial innovation, the study revealed that negative linkage between shocks in EPU and financial innovation in the long-run but short-run effects are insignificant. Furthermore, financial innovation measured by R&D investment exhibits positive linked with shocks in EPU, implying that uncertainty induces innovation in the economy. Refers to directional causality estimation, the study revealed evidence supporting the feedback hypothesis between EPU and financial innovation in all sample countries.

We used the Bootstrap ARDL method to test the relationship between the export trades, FDI and CO₂ emissions of the BRICS countries. We found that China's foreign direct investment and the lag one period of CO₂ emissions have a cointegration on exports. South Africa's foreign direct investment and CO₂ emissions have a cointegration relationship with the lag one period of exports, and South Africa's the lag one period of exports and foreign direct investment have a cointegration relationship with the lag one period of CO₂ emissions. But whether it is China or South Africa, these three variables have no causal relationship in the long-term. Among the variables of other BRICS countries, Russia is the only country showed degenerate case #1 in McNown et al. mentioned in their paper. When we examined short-term causality, we found that CO₂ emissions and export trade showed a reverse causal relationship, while FDI and carbon emissions were not so obvious. Export trade has a positive causal relationship with FDI. Those variables are different from different situations and different countries.

Research background: Relationship between inflation rate, unemployment rate, interest rate and real gross domestic product per capita in Nigeria. However, there seems to be a short-run or long-run relationship among the macroeconomic variables.Purpose: This study investigated the impact of the inflation rate, unemployment rate and interest rate on real gross domestic product per capita (RGDPPC) (proxy for economic growth) and proffered recommendations towards enhancing economic growth and to reduce the distasteful effects of inflation rate, unemployment rate and interest rate in Nigeria in this present time economic challenges.Research methodology: This study applied a linear dynamic model Autoregressive Distributed Lag (ARDL) modeling technique to analyze the short-run dynamics and long-run relationship of the economic growth in Nigeria over the sample period between 1984 and 2017 using annual secondary data extracted from World Bank Development Indicators Report (last updated January 2019).Results: The empirical results showed that there was long-run relationship between inflation rate, unemployment rate and interest rate on real gross domestic product per capita (proxy for economic growth) in Nigeria. The result further revealed that only unemployment rate had a significant positive impact on real gross domestic product per capita in the long-run and inflation rate had a significant negative impact on real gross domestic product per capita in the short-run.Novelty: Therefore, the study concluded that unemployment rate and inflation rate proved to have significant impacts on economic growth in the long-run and short-run respectively. Formulation of policies to reduce unemployment through the adoption of labour concentrated technique of production, entrepreneurship development and policy to keep the inflation rate at single digit.

The major aim of this study was to investigate and explores the linkage between economic growth, electricity access, energy use and population growth in Pakistan. To check the variables stationarity, Augmented Dickey-Fuller (ADF) and Phillips-Perron unit root test was applied and an Autoregressive Distributed Lag (ARDL) bounds testing approach to co-integration was applied to investigate the dynamic causality link among the study variables. These tests shed light on the long-run connection among the variables; further, the results revealed that electricity access to population, electricity access to urban population, energy usage, population growth, and urban population growth had a significant impact on economic growth, while the electricity access to rural population and rural population growth has a negative impact on the economic growth in Pakistan. According to these findings, study commends that government of Pakistan pay further attention to increase its electricity production from different sources including, hydroelectric, solar, oil and gas and nuclear in order to fulfill the country’s demands. By using ARDL bounds testing approach, this study filled the literature gap regarding economic growth, electricity access, energy use and population growth in Pakistan.

The paper investigated the components of savings accumulation in Nigeria over the period 1980 to 2017. Secondary data were collated from World Development Index (WDI). In evaluating the objectives, the study employed the Auto Regressive Distributive Lag (ARDL) and Vector Error Correction Model (VECM) estimation methods. The key findings of the study show that the components of savings identified in literature understudied in the paper specifically, GDP per capita, foreign direct investment, financial deepening, interest rate, inflation rate exchange rate significantly influence savings accumulation in Nigeria either in short run, long run or both. Financial deepening was found statistically significant but influences savings negatively. Inflation rate was statistically insignificant although negative. The result from the VECM causality test revealed that short run and long run causal relationship exist between savings and the afore mentioned components in Nigeria. Hence, the study recommends careful manipulation of the identified savings components in a manner that they will not yield a counterproductive result in the economy rather contribute to the growth of savings and ultimately, the growth of Nigeria economy as a whole. It further recommends that the Nigerian government through its financial institutions encourage savings from both small and big savers which to large extent will assuage the perceived undeserved influence of financial deepening on savings accumulation.

This paper aims to discuss the relationship between financial development and inflation in Kenya using time series data between 1973 and 2021. The short- and long-run impact of financial development on inflation remains an important issue in the empirical and theoretical literature especially for country specific, but has yet to receive significant research consideration. For this purpose, the paper uses an ARDL analysis method, which is considered an advanced analytical model. Empirical findings confirmed that financial development has a significant long-run impact on inflation in Kenya. On the contrary, results confirmed that there is no significant short-run effect of financial development on inflation. In addition, there is significant long-run and short-run negative relationship between interest rate and inflation. The results indicate significant long-run Granger and ARDL causality from financial development to inflation. The main policy implications of the empirical results of this paper suggest supervision of financial sector must be directed in a way that would stimulate a stable and a moderate inflation rate. In particular, both financial institution and government should enhance the infrastructures of the financial market and promote the utilisation of financial services.

This research investigates the impact of oil price fluctuations on food prices in Saudi Arabia between 1979 and 2020 using Nonlinear Autoregressive Distributed Lags (NARDL) methodology. The study employs Augmented Dickey-Fuller (ADF) and Phillip Perron (PP) tests to determine the integration order of the variables and Bounds testing to confirm the existence of long-run cointegration relationships between each variable. The results indicate that oil shocks influence food prices through several mechanisms. Firstly, the cost of energy increases due to the rise in oil prices, affecting the agricultural commodity market, including farm equipment, food processing, packaging, and distribution costs. Secondly, the demand for agricultural commodities to produce biofuels affects food availability and, thus, food prices. Thirdly, as an oil-based economy, the oil price shock affects food prices through its impact on government spending, which affects aggregate demand and liquidity. Therefore, Saudi Arabia should adopt appropriate policies to mitigate the impact of oil price shocks on food prices, including investing in renewable energy sources, diversifying its economy, and improving food production and supply chain efficiency. Additionally, implementing appropriate fiscal policies to ensure sufficient budget allocation for food support programs is crucial. However, investing in groundwater exploration can contribute significantly to the development of Saudi agriculture and to gradually achieving food self-sufficiency.

This study examined the link between tax revenue components and economic growth in South Africa, utilizing time series data for the period of 22 years. The stationarity of the variables was established using the Phillips-Perron (PP) unit root test, and the existence of long-run and short-run equilibrium conditions was tested using the Autoregressive Distributed Lag (ARDL) model. As a proxy for economic growth, the study used the real GDP growth rate as the dependent variable, with company income tax, personal income tax, taxes on international trade and transactions, taxes on income, profits, and capital gains tax, foreign direct investment, inflation, and gross savings as the independent variables. According to the PP findings, none of the variables are integrated at a higher order than one, i.e. (1). All variables are found to be cointegrated, and all explanatory variables have a long-run link with economic growth. According to the ARDL findings, company income tax, personal income tax, and taxes on international trade and transactions all have a positive long-run and short-run link with economic growth, whereas capital gain tax, foreign direct investment, and gross savings all have a negative long-run and short-run link with economic growth. The long-run coefficient is negatively related to RGDP, while the short-run coefficient revealed a positive link between inflation and economic growth, among other findings. Heteroskedasticity and autocorrelation are not present in our model, according to diagnostic tests. The CUSUM and CUSUMSQ values indicate that the model is structurally sound.

In this study, the causal-effect between carbon dioxide emissions and forestry production and trade was investigated in Ghana by employing a data spanning from 1961 to 2014 by using the VECM and ARDL model. Evidence of the long-run equilibrium relationship in the VECM shows that, a 1% increase in veneer sheet production reduces carbon dioxide emissions by 1.47% in the long-run. There was evidence of a bidirectional causality between carbon dioxide emissions and veneer sheet production, carbon dioxide emissions and wood charcoal production, and a unidirectional causality running from carbon dioxide emissions to wood fuel production and plywood production to carbon dioxide emissions. Evidence from the long-run equilibrium relationship in the ARDL model shows that; a 1% increase in plywood production will increase carbon dioxide emissions by 0.17% in the long-run, a 1% increase in sawnwood production will increase carbon dioxide emissions by 0.17% in the long-run, a 1% increase in wood charcoal production will increase carbon dioxide emissions by 0.36% in the long-run and a 1% increase in wood fuel production will increase carbon dioxide emissions by 0.37% in the long-run.

The ultimate goal of this paper was to examine the degree of elasticity between two variables, namely, agricultural credit and agricultural growth, in Angola in the period 2003–2022. Time series data were fitted into the ARDL test using various econometric techniques such as the ADF stationarity test, Granger causality and the ordinary least squares method as well as a vector error correction model (VECM) to analyze the relationship between agricultural credit and agricultural economic growth, showing a causal relationship. Both the impacts through elasticities and the optimal point existing in this relationship were estimated. It was concluded that the impact of agricultural credit on agricultural GDP was 14.41%. Granger causality shows signs of a positive linkage between agricultural credit and agricultural GDP. However, there is a causal relationship between agricultural credit and agricultural GDP, in a unidirectional aspect. This result is consistent with most of the earlier studies reviewed in the literature, confirming that credit-oriented monetary policies can boost economic growth and, consequently, development in Angola. It is important for agricultural credit systems to be designed in a way that ensures equitable access, fair interest rates, and appropriate risk management mechanisms. Additionally, monitoring and evaluation mechanisms should be in place to assess the environmental and social impacts of credit programs on agricultural sustainability. It is worth noting that this is a first-of-a-kind study on the matter of the Angolan credit experience, specifically for the agricultural sector. Angola is still searching for a sustainable credit model that could be used as a catalyzer to boost growth and contribute to economic development.

The study presents empirical results investigating the relationships among renewable and non-renewable energy consumption, CO2 emissions, and GDP within the Visegrád Group (V4) countries. Using FMOLS/DOLS and ARDL approaches, along with causality tests based on the Toda-Yamamoto method, the study explores these relationships at a regional level. The findings indicate that renewable energy has a small positive impact on long-term economic growth, with non-renewable energy having a more significant effect. Moreover, CO2 emissions have a negative impact on economic growth, suggesting ongoing reliance on non-renewable energy sources and a burden on economic expansion. On an individual country level, the effects vary. Poland, Slovakia, and Hungary exhibit a negative relationship between CO2 emissions and economic growth. Energy sources also differ in impact: in Poland, the Czech Republic, and Slovakia, non-renewable energy significantly affects economic growth, while in Hungary, renewable energy plays a more substantial role. Causality tests reveal a causal relationship between CO2 emissions and economic growth in the Czech Republic and Poland, suggesting CO2 emissions significantly influence economic expansion. In terms of energy production, renewable energy is causally related to economic growth in the Czech Republic and Slovakia. All countries demonstrate significant causality between non-renewable energy and economic growth. Additionally, a relationship between renewable energy and CO2 emissions is confirmed in Poland.

In most econometrics literature, the Autoregressive Distributed Lag (ARDL) model is often applied in many economic analyses to study short and long run relationships. This is because ARDL model can deal with economic variables that are integrated of different order (I(0), I(1) or combination of both) and also it is robust where there is single long-run relationship between the underlying variables in a simple sample size. This study applied the ARDL model to examine the contributions of commercial Banks to GDP growth in Nigeria. To achieve this, annual data covering 1981 to 2015 for loans and advances, savings, lending rates and GDP of Financial Institutions were collected from CBN bulletin. The ADF test revealed that the variables are I(1) except for lending rate which was of I(0) order. The ARDL(1,1,1,2) model revealed that loans and advances, and lending rates are significantly positively related to GDP in Nigeria but savings was not significant in the model. The model revealed some evidence of short run relationships while the ecm(-1) was -0.6156 (P-value=0.0038<0.05) which means that the rate of the speed of adjustment to equilibrium is 61.56% annually. The estimated model is free from serial correlation, multicollinearity, heteroscedasticity while the model is stable and the residuals are normally distributed. The study recommends that savings and savings culture should be encouraged in Nigeria since economic theory states that savings and investment are related in any economic development.

In this study, an attempt was made to investigate the Kenya case of multivariate causality of carbon dioxide emissions by employing a time series data spanning from 1961-2011 using the ARDL method of cointegration analysis. The long-run elasticities show that, a 1% increase in financial development increases carbon dioxide emissions by 0.28%, a 1% increase in GDP per capita increases carbon dioxide emissions by 1.32% and a 1% increase in urbanization decreases carbon dioxide emissions by 1.14%. There was a unidirectional causality running from financial development, food production index, GDP per capita, industrialization and urbanization to carbon dioxide emissions. The innovation accounting shows that 20% of future shocks in carbon dioxide emissions are due to fluctuations in financial development, 9% of future shocks in financial development are due to fluctuations urbanization and 22% of future shocks in food production index are due to fluctuations in carbon dioxide emissions.

This study examines the complex relation among environmental taxes, productive capacities, urbanization, and their collective effects on environmental quality in Africa, drawing on two decades of data from twenty African countries. It situates the study within the broader discourse on sustainable development and economic growth, emphasizing the Environmental Kuznets Curve (EKC) framework to examine the relationship between economic development, characterized by urban expansion and increased productive capacities, and the adoption of environmental taxes amidst the continent’s diverse economic and environmental environments. Using advanced econometric techniques, including the Cross-Section Augmented Autoregressive Distributed Lag (CS-ARDL) model and the Dynamic Common Correlated Effects Mean Group (DCCEMG) estimator, the study addresses data challenges such as cross-sectional dependence and slope heterogeneity. The results provide important insights into the dynamics of environmental quality in relation to economic and urban growth and the role of environmental taxation. The study proposes tailored policy strategies aimed at strengthening sustainable development initiatives in line with international agreements such as the Paris Agreement and the Sustainable Development Goals. These strategies advocate for a nuanced application of environmental taxes and the promotion of productive capacities to enhance environmental sustainability across the African continent.

This study rigorously investigates the impact of COVID-19 on the Tunisian stock market volatility. The investigation spans from January 2020 to December 2022, employing a GJR-GARCH model, bias-corrected wavelet analysis, and an ARDL approach. Specific variables related to health measures and government interventions are incorporated. The findings highlight that confirmed and death cases contribute significantly to the escalation in TUNINDEX volatility. Interestingly, certain indices related to government interventions exhibit no substantial impact on volatility, indicating a weak resilience of the Tunisian stock market amidst the challenges posed by COVID-19. However, the application of the bias-corrected wavelet analysis yields more nuanced outcomes in terms of correlations of volatility to the same metrics. Notably, the study recognizes the potential influence of uncertainties linked to the duration of lockdowns on financial market volatility. The positive and long-term impact on volatility of the US Equity Market uncertainty and VIX is evident through the Autoregressive Distributed Lag Model (ARDL), whereas economic policy uncertainty shows no significant impact. This indicates a potential vulnerability of the Tunisian stock market to future shocks, emphasizing the need for government efforts to instill investor confidence. This comprehensive exploration contributes to our understanding of the dynamics between the pandemic’ metrics, government interventions, and financial market stability. Our findings provide valuable insights for implementing risk management strategies amid the COVID‐19 crisis.

The present reality of the Nigerian economy is the fact that inflation has remained unabated in spite of all exchange rate measures that have been adopted by the monetary authority. This calls for investigation into the extent to which exchange rate impact on inflation in Nigeria. The research paper examined the impact of exchange rate depreciation on inflation in Nigeria for the period 1981–2017, using Auto Regressive Distributed Lag (ARDL) Bounds Test Cointegration Procedure. The research shows that inflation rate in Nigeria is highly susceptible to lagged inflation rate, exchange rate, lagged exchange rate, lagged broad money, and lagged gross domestic product at 5% level of significance. A long run relationship was also found to exist between inflation rate, gross domestic product and general government expenditure, indicating that the model has a self-adjusting mechanism for correcting any deviation of the variables from equilibrium. Therefore, this study concludes that exchange rate is an important tool to manage inflation in the country; thus, this paper recommends that policies that have direct influence on inflation as well as exchange rate policies that would checkmate inflation movement in the country, should be used by the Central Bank of Nigeria. Also, monetary growth and import management policies should be put in place to encourage domestic production of export commodities, which are currently short-supplied. In addition, policy makers should not rely on this instrument totally to control inflation, but should use it as a complement to other macro-economic policies.

Climate change has become a major concern for developing countries given the risk that it posses on energy and food independence, and on general productivity. Despite having an energy system with low carbon intensity when compared to other Latin American countries, Colombia is already facing climate change impacts and requires urgent efforts to mitigate them. As a developing country, the challenge is bigger as policies for economic growth should be in line with the global commitment of reducing greenhouse gas emissions. With the aim of contributing to the design of climate policies, this study assesses the impact of economic development on the environment by examining the validity of the Environmental Kuznets Curve hypothesis for Colombia. Statistically validated and stable autoregressive distributed lag models are estimated for three different environmental indicators: carbon dioxide emissions, methane emissions, and ecological footprint. Moreover, the effects of other variables such as urbanization, foreign direct investment, value added of agricultural and industrial sectors, and energy use are analyzed with dynamic simulations. Empirical evidence supports a long-run equilibrium relationship among investigated variables and the existence of an inverted U-shaped EKC relationship between Gross Domestic Product (GDP) and methane emissions, and GDP and ecological footprint. Shifting to renewable energy sources and leveraging the use of cleaner technologies in agricultural and industrial sectors are found to be key for economic growth without harming the environment.

This study investigates the influence of economic growth on CO2 emissions levels in three developed countries—Argentina, Equatorial Guinea, and South Korea—based on their status as high-income countries. We test the environmental Kuznets curve (EKC) hypothesis using the time series approaches to check the relationship and direction of causality among the variables over a sample spanning 1974–2020. The results show an inverted U-shaped short-run relationship in all three countries. In the long run, only South Korea supports the EKC hypothesis. Further, Granger causality results indicate the existence of causality. These long-run causal relationships between economic growth and emissions recommend one policy implication that wealthy governments must expand investments in renewable clean energy projects and R&D, with regulatory measures to suppress harmful environmental procedures and support environmentally friendly development.

The aim of this study is to empirically examine the link between foreign direct investment (FDI) and domestic investment (DI) in South Africa over the period of 41 years (1975-2016). Accurately, it attempts to determine whether FDI crowds in or crowds out DI in South Africa. DI is sub-divided into private domestic investment (credit to domestic private sector) and public corporation investment (state owned enterprises). We used the Autoregressive Distributed Lag-Error Correction Model (ARDL-ECM) technique to ascertain long run and short run effects concurrently after establishing that the variables were stationary (using the PP test). The results of the unit root test shows that all variables are integrated of order zero I(0) or integrated of order one I(1), indicating that the series of variables are stationary in the level or first difference form. The findings revealed that variables are cointegrated in the long run. The ARDL model found a negative link between FDI and domestic investment. The result implies that FDI crowds out domestic investment. Moreover, the long run estimate revealed that domestic investment is crowded in by government investment expenditure (GINV). Other findings uncovered that, GDP crowds out private domestic investment while crowding in public corporation investment. Moreover, the long run estimate revealed that domestic investment is crowded in by gross domestic savings (SAV). On the other hand, the real exchange rate (EXCR) crowds out private domestic investment while crowding in public corporation investment. Trade openness (TRA) crowds out domestic investment. Additionally, the short run estimate uncovered that private domestic investment is crowded out by FDI, EXCR, and TRA whereas GINV, GDP and SAV is crowding in private domestic investment. Other findings discovered that, in the short run, public corporation investment is crowded out by FDI, GDP, EXCR and TRA, while GINV and SAV crowd in public corporation investment. The CUSUM confirms that the models are structurally firmness.