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Articles 1 - 30 of 31
Full-Text Articles in Business
Impact Of Aml/Cft Regulations On Digital Disruptions (Fintech) And Financial Inclusion In Sub-Saharan Africa, David Nkang Odu
Impact Of Aml/Cft Regulations On Digital Disruptions (Fintech) And Financial Inclusion In Sub-Saharan Africa, David Nkang Odu
Bullion
Financial Technology is becoming paramount in all financial institutions, being utilized in helping companies manage most of their financial operations efficiently through the use of software and specialized algorithms. The future of finance will shine brightest when it provides standard and valuable services to the society, however this will come with its own merits and demerits. I have prepared this report to carry out a detailed discussion on the impact that the AML/CFT controls have on FinTech and the financial inclusion initiative in sub-Saharan Africa. The AML/CFT controls can be applied more effectively in the formal systems for banking and …
Purchasing Power Parity Approach To Exchange Rate Misalignment In Nigeria, Nakorji Musa, Agboegbulem Ngozi T. I., Gaiya Blessing A., Atoi Ngozi V.
Purchasing Power Parity Approach To Exchange Rate Misalignment In Nigeria, Nakorji Musa, Agboegbulem Ngozi T. I., Gaiya Blessing A., Atoi Ngozi V.
CBN Journal of Applied Statistics (JAS)
This study examines the purchasing power parity (PPP) approach to the determination of exchange rate misalignment in Nigeria by using two variants of the PPP: the absolute PPP (aPPP) and the relative PPP (rPPP). Data on the Nigerian Naira to US Dollar (N/$), British Pound (N/£) and Chinese Yuan (N/¥) interbank exchange rates, Nigeria consumer price index and Inflation as well as the US, UK and China consumer price indices and inflation rates spanning 2008:M1 to 2018:M12 were utilized. A recently modified fractional cointegration framework was employed, taking care of smooth structural breaks and nonlinearity, while the unit root tests …
Analysing User Experience Of Mobile Banking Applications In Nigeria: A Text Mining Approach, Omotosho Babatunde S.
Analysing User Experience Of Mobile Banking Applications In Nigeria: A Text Mining Approach, Omotosho Babatunde S.
CBN Journal of Applied Statistics (JAS)
This paper analyses textual data mined from 37,460 reviews written by mobile banking application users in Nigeria over the period November 2012 – July 2020. On a scale of 1 to 5 (5 being the best), the average user rating for the twenty-two apps included in our sample is 3.5; with the apps deployed by non-interest banks having the highest average rating of 4.0 and those by commercial banks with national authorisation having the least rating of 3.4. Results from the sentiment analysis reveal that the share of positive sentiment words (17.8%) in the corpus more than double that of …
Money And Foreign Exchange Markets Dynamics In Nigeria: A Multivariate Garch Approach, Atoi Ngozi V., Nwambeke Chinedu G.
Money And Foreign Exchange Markets Dynamics In Nigeria: A Multivariate Garch Approach, Atoi Ngozi V., Nwambeke Chinedu G.
CBN Journal of Applied Statistics (JAS)
This study examines the money market and foreign exchange market dynamics in Nigeria by estimating the dynamic correlation and volatility spillovers between the Nigeria Naira/US Dollar Bureau De Change (BDC) exchange rate and interbank call rate with data from January 2007 to August 2019. The study employs a dynamic conditional correlation form of the GARCH model (DCC-GARCH) to assess the nature of correlation, while an unrestricted bivariate BEKK-GARCH (1, 1) form of the multivariate GARCH model is utilized to investigate shocks and volatility spillover of the rates. The estimated DCC-GARCH (1, 1) reveals that interest rate and exchange rate are …
Impact Of Government Expenditure On Economic Growth In Nigeria, 1970-2019, Aluthge Chandana, Jibir Adamu, Abdu Musa
Impact Of Government Expenditure On Economic Growth In Nigeria, 1970-2019, Aluthge Chandana, Jibir Adamu, Abdu Musa
CBN Journal of Applied Statistics (JAS)
This study investigates the impact of Nigerian government expenditure (disaggregated into capital and recurrent) on economic growth using time series data for the period 1970-2019. The paper employs Autoregressive Distributed Lag (ARDL) model. To ensure robustness of results, the study accounts for structural breaks in the unit root test and the co-integration analysis. The key findings of the study are that capital expenditure has positive and significant impact on economic growth both in the short run and long run while recurrent expenditure does not have significant impact on economic growth both in the short run and long run. The study …
Markovian Approach To Stock Price Modelling In The Nigerian Oil And Gas Sector, Ayo Adekunle S., Uwabor Eboigbe S.
Markovian Approach To Stock Price Modelling In The Nigerian Oil And Gas Sector, Ayo Adekunle S., Uwabor Eboigbe S.
CBN Journal of Applied Statistics (JAS)
The study investigates the stock price movement of quoted Nigerian oil and gas firms using the Markovian model. Specifically, the study estimates the change in likelihoods and steady-state distribution of the share prices of the firms to determine the average time spent by the share price to move to another state and the turnover rate of the selected stocks. Markov chain-based stochastic modelling approach was employed by using the daily closing share prices of all the seven oil and gas firms quoted on the Nigerian Stock Exchange from April 2017 to January 2020. The study finds that the transition probabilities …
An Adjusted Classical Model For Interest-Free Financing In Nigeria, Abdul Ibrahim, Habibu M-G Salihu
An Adjusted Classical Model For Interest-Free Financing In Nigeria, Abdul Ibrahim, Habibu M-G Salihu
Bullion
This paper examines an interest-free macroeconomic models by adjusting the classical model into an interest-free macroeconomic model as a basis for developing a comparative analysis. The study adopted a descriptive approach by describing the mechanics for obtaining an interest-free macroeconomic model from a prototype western model. It was observed that most Muslims in Nigeria are interested in adopting interest free financing under the western system. This is a reason for converting a western model into an interest-free model.This conversion allows policy-makers to gain useful insight in the process in transition from the western system to the Islamic system. The Islamic …
The Role Of The Central Bank Of Nigeria Analytical Balance Sheet In Monetary Policy Implementation, Salihu Audu
The Role Of The Central Bank Of Nigeria Analytical Balance Sheet In Monetary Policy Implementation, Salihu Audu
Bullion
This paper examines the role of the Central Bank of Nigeria (CBN) analytical balance sheet in the implementation of monetary policy. The Bank currently uses a mix of both quantity-based (monetary base) and price-based (short-term interest rate) nominal anchors. However, irrespective of the targeting regime adopted, both depends on the central bank's ability to manage its balance sheet given the huge fiscal influence on banking system liquidity in Nigeria. Therefore, the paper analyses the various liquidity management operations of the CBN and their implications for the size and structure of the analytical balance sheet.
Firm Survival Of Listed Nigerian Financial Institutions: A Consolidated Methods Approach, Sunusi Garba, Adamu M. Abubakar, Ahmad I. Mohammed, Mohammed S. Damamisau
Firm Survival Of Listed Nigerian Financial Institutions: A Consolidated Methods Approach, Sunusi Garba, Adamu M. Abubakar, Ahmad I. Mohammed, Mohammed S. Damamisau
Bullion
The firm's survival is regarded as an essential element usually used by the capital market participants in making vital decisions. This study examines the combined roles of bankruptcy, earnings management, and profitability in explaining a firm's survival in the listed Nigerian financial institutions. To achieve this, a descriptive research design is adopted and data were generated from databases of the listed companies in the Nigerian Stock Exchange for the period 2006 to 2015. Panel data analysis was employed in analysing collected data of the sampled 29 financial institutions in the Nigerian financial sector. The study found that most of the …
Microfinance Credit And Micro Enterprise Development In The Agricultural Sub-Sector Of The Nigerian Economy, Ademola A. Adebisi
Microfinance Credit And Micro Enterprise Development In The Agricultural Sub-Sector Of The Nigerian Economy, Ademola A. Adebisi
Bullion
This study seeks to examine the relevance of micro financing credit loans to Agri-business in Lagos State, Nigeria - the development of Agricultural sub-sector centering the attention to the contribution of the institutions involved in the provision of these credits.It makes a critical review of the performance of microfinance institutions in Nigeria, based on a survey of the Agricultural Credit Guarantee Scheme Fund (a microfinance scheme established to boost the agricultural sub-sector of Nigeria). The study examines the scheme – the institutions involved and analyses the performance using the outreach paradigm via the mixed approach research techniques – qualitative and …
Estimating A Fiscal Reaction Function For Nigeria, Patrick Ogiji, Kayode J. Ajayi
Estimating A Fiscal Reaction Function For Nigeria, Patrick Ogiji, Kayode J. Ajayi
CBN Journal of Applied Statistics (JAS)
The study examines the determinants of fiscal balance and the impact of the selected macroeconomic variables on the primary balance of government. It aims to estimate the fiscal reaction function for Nigeria and determine whether the implementation of fiscal policy is sustainable in the long-run. A Fiscal Reaction model was developed and ARDL technique was used to establish the relationships and interactions among the variables. The study investigated whether the fiscal measures pursued by the government from 2000:Q1 to 2018:Q4 was adequate in addressing the accumulation of huge debt. The analysis of the stylized facts reveals that the government had …
Spillover Effect Of United States Monetary Policy On Nigeria’S Financial And Macro Fundamentals, Patterson C. Ekeocha
Spillover Effect Of United States Monetary Policy On Nigeria’S Financial And Macro Fundamentals, Patterson C. Ekeocha
CBN Journal of Applied Statistics (JAS)
This paper examines spillover effects of U.S monetary policy on macroeconomic fundamentals in Nigeria from January 1985 to December 2018. The study period is partitioned to account for conventional monetary policy (CMP) period, January 1985 to August 2007 and unconventional monetary policy (UMP) period, September 2007 to December 2018. Guided by relevant pre-tests, we find BEKK-VARMA-CCCMGARCH as the most appropriate model. The study finds significant spillover effects of U.S CMP and UMP on interest rate, exchange rate and inflation rate in Nigeria. We, however, observe that while CMP may be a significant accelerator of shocks persistence on interest rates and …
Portfolio Balance Approach To Asymmetries, Structural Breaks And Financial Crisis: Testing A Model For Nigeria, Portfolio Balance Theory, Oluwasegun B. Adekoya
Portfolio Balance Approach To Asymmetries, Structural Breaks And Financial Crisis: Testing A Model For Nigeria, Portfolio Balance Theory, Oluwasegun B. Adekoya
CBN Journal of Applied Statistics (JAS)
This study tests the Portfolio Balance Theory (PBT) for Nigeria for the period starting from September 1997 to September 2018. It extends the hypothesized linear inverse relationship between exchange rate and stock price to include asymmetries and structural breaks. It further examines the impact of the 2008 global financial crisis on the PBT to determine its stability after the crisis. The full sample results show that the PBT holds for Nigeria and asymmetries and structural breaks matter in the nexus between stock price and exchange rate. However, the impact of stock price on exchange rate diminished in the long-run with …
Oil Price Shocks And Macroeconomic Dynamics In An Oil-Exporting Emerging Economy: A New Keynesian Dsge Approach, Sunday Oladunni
Oil Price Shocks And Macroeconomic Dynamics In An Oil-Exporting Emerging Economy: A New Keynesian Dsge Approach, Sunday Oladunni
CBN Journal of Applied Statistics (JAS)
The global oil dynamics has significant implications for both oil exporting and importing small open economies. However, much of the literature on oil shocks is oriented towards advanced oil-importing economies. Micro-founded studies that explore the effects of oil shocks from the standpoint of oil-endowed emerging economies are rather sparse, compared to the preponderance of studies on developed oil importers and exporters. Thus, resulting to a consequential knowledge gap on oil price transmission mechanism and a limited appreciation of the growing policy dilemmas in these economies. The paper, therefore, sets up a new Keynesian dynamic stochastic general equilibrium (DSGE) model to …
Determination Of Optimal Level Of Foreign Reserves In Nigeria, Ishola W. Oyeniran, Solomon A. Alamu
Determination Of Optimal Level Of Foreign Reserves In Nigeria, Ishola W. Oyeniran, Solomon A. Alamu
CBN Journal of Applied Statistics (JAS)
This study adopts the ’buffer stock model’ advanced by Frenkel and Jovanovic (1981) to estimate the optimal level of foreign reserves for Nigeria. The Autoregressive Distributed Lag Approach (ARDL) was used to estimate the optimal foreign reserves function. The results show that the Nigeria’s optimal reserves level responses to adjustment cost of holding reserves and exchange rate volatility and that import and opportunity cost of reserves holding have insignificant impact on Nigeria’s optimal foreign reserves. The short run and long run estimates of the buffer stock model support the theory that foreign reserves holding in Nigeria is more sensitive to …
Analysis Of The Impact Of Central Bank Of Nigeria's Agricultural Intervention Funds On The Economy, E. T. Adamgbe, M. C. Belonwu, E. R. Ochu, I. I. Okafor
Analysis Of The Impact Of Central Bank Of Nigeria's Agricultural Intervention Funds On The Economy, E. T. Adamgbe, M. C. Belonwu, E. R. Ochu, I. I. Okafor
Economic and Financial Review
This paper set out to investigate the impact of Central Bank of Nigeria's interventions on the agricultural sector within an economy-wide framework of general equilibrium modelling. The paper adopted a dynamic (recursive), two-sector general equilibrium model of the Nigerian economy with some modifications on the standard model developed by the Centre for Econometric and Applied Research (CEAR) and incorporated the contributions of the CBN's agricultural based interventions as increases in the stock of agricultural capital to have a more robust size of interventions into the agricultural sector. The SAM used for the CGE model analysis was derived from the updated …
Is Inflation Always And Everywhere A Monetary Phenomenon? Evidence From Nigeria, J. K. Achua, H. Nagado, I. I. Okafor
Is Inflation Always And Everywhere A Monetary Phenomenon? Evidence From Nigeria, J. K. Achua, H. Nagado, I. I. Okafor
Economic and Financial Review
Is inflation always a monetary phenomenon in Nigeria? Autoregressive Distributed Lag (ARDL) results of Nigerian data, spanning 2005q1-2017q4, indicate that changes in money supply have no long-run significant impact on domestic price level behaviour. The results, however, reveal that non-monetary factors: import, global oil price, exchange rate, inflation expectation, fuel pump price and monetary policy rate significantly upsurge inflationary pressure. Conversely, household income (the shadow of unemployment) significantly dampens inflationary pressure while fiscal deficits moderate the pressure. The findings establish the dominance of structural and fiscal dynamics in the inflation equation of the economy.
Investigating The Impact Of Widening Price Limits On Volatility: The Experience Of The Nigerian Stock Exchange, Mohmmed A. Yadudu
Investigating The Impact Of Widening Price Limits On Volatility: The Experience Of The Nigerian Stock Exchange, Mohmmed A. Yadudu
Bullion
This paper empirically evaluates the impact of return volatility from widening price limits from 5% to 10% on the Nigerian Stock Exchange(NSE) on September 18, 2012 using a Stochastic Volatility model in an event study framework. Using daily trading data from September 2010 to September 2014, the study finds that widening of price limits in the NSE has not increased volatility as feared by some regulators. Stocks with higher free floats and institutional ownership display lower volatility when price limits are widened. This suggests that smaller stock exchanges can improve market efficiency by widening price limits without increasing volatility. The …
Pension Fund, Financial Development And Output Growth In Nigeria, Iwegbu Onyebuchi
Pension Fund, Financial Development And Output Growth In Nigeria, Iwegbu Onyebuchi
Bullion
This study examines the indirect effect of pension fund on economic growth in Nigeria through the financial system. Using Autoregressive Distributive Lag (ARDL) model, the study found out that pension fund contribution is effective in stimulating growth through investment in portfolios that yield short term returns; this implies that pension fund contribution cannot on its own without a credible financial system impact on economic growth. The policy implication of this study is for Pension Fund Administrators (PFAs) to invest in portfolios with short-term returns; thus, a large chunk of funds invested in federal government securities should be unbundled to other …
Traffic Congestion In F.C.T: Demand And Supply Approach, Ibrahim Abdul, Salihu Habibu Mohammed Gani, Ibrahim G. Umaru
Traffic Congestion In F.C.T: Demand And Supply Approach, Ibrahim Abdul, Salihu Habibu Mohammed Gani, Ibrahim G. Umaru
Bullion
This study examined traffic congestion in Abuja metropolis, F.C.T.- Nigeria using demand and supply approach. The study adopted survey research design. Primary data was collected using questionnaires. Descriptive statistics was used to analysed the data with the aid of tables and graphs. It was discovered that as a road reaches its capacity, each additional vehicle imposes more total delay on others than they bear, resulting in excessive traffic volumes. Congestion is mainly due to the intensive use of automobiles, whose ownership has spread massively in the F.C.T. in recent decades. The study revealed that traffic congestion causes serious consequences in …
Bank Loan Loss Provisioning During Election Years In Nigeria, Peterson Kitakogelu Ozili
Bank Loan Loss Provisioning During Election Years In Nigeria, Peterson Kitakogelu Ozili
Bullion
The paper investigates the behavior of loan loss provisions during election years in Nigeria. Election events create uncertainties in the business environment. Election and post-election events may amplify credit risks for banks, requiring banks to keep higher loan loss provisions. Using country-level data, it was revealed that the election year did not have a significant effect on the level of loan loss provisions in the Nigerian banking sector. However, the banking sector had high provisions when it is undercapitalized during election years.
Measuring The Risk In Risk Measures: The Case Of The Nigerian Foreign Exchange Market, K. Katata
Measuring The Risk In Risk Measures: The Case Of The Nigerian Foreign Exchange Market, K. Katata
Economic and Financial Review
As part of its mandate, the Central Bank of Nigeria (CBN) carried out a series of foreign exchange policy decisions from 2014 to 2016. This paper, therefore, evaluated model risk of two key risk measures, expected shortfall (ES) and value-at-risk (VaR), due to the CBN's policy decisions using daily data for the naira exchange rates covering 2010 to 2014, as well as, 2011 to 2015 for the respective policy resolutions. The risk measures were implemented using 6 different models, as the most common techniques used by regulators and practitioners. The implementation of Basel III recommends the switchover from VaR to …
Globalisation And Government Size In Nigeria: A Revisit Of The Compensation Hypothesis, P. I. Nwosa, T. O. Akinbobola
Globalisation And Government Size In Nigeria: A Revisit Of The Compensation Hypothesis, P. I. Nwosa, T. O. Akinbobola
Economic and Financial Review
The link between globalisation and government expenditure has remained contentious in the literature particularly from a disaggregated perspective. Hence, this study examines the compensation hypothesis by analysing the relationship between globalisation and government size in Nigeria for the period 1981 to 2018. Globalisation is proxied by trade and financial openness while government size is measured by final consumption expenditure by the general government (FCE), share of government expenditure on economic services (ECO), share of government expenditure on social and community services (SCS), and share of government expenditure on transfers (TRF). The study employed the error correction modelling technique and the …
An Assessment Of The Effectiveness Of Central Bank Sterilization On Capital Inflows In Nigeria, Tijjani M. Jume
An Assessment Of The Effectiveness Of Central Bank Sterilization On Capital Inflows In Nigeria, Tijjani M. Jume
CBN Journal of Applied Statistics (JAS)
This paper assesses the monetary policy response of the Central Bank of Nigeria (CBN) to increases in capital inflows into Nigeria using monthly time series data from January 2009 to December 2017. It presents an econometric assessment of the degree to which the CBN sterilizes net foreign assets (NFA) in response to the capital flows, using Autoregressive Distributed Lag (ARDL) Bounds testing approach. The long run sterilization coefficient obtained suggests that the CBN successfully offset 95per cent of capital inflows in the period of analysis. Against the background of rising financial instability in Nigeria, the study illustrates how sterilization has …
Determinants Of Money Supply In Nigeria, Aderopo R. Adediyan
Determinants Of Money Supply In Nigeria, Aderopo R. Adediyan
CBN Journal of Applied Statistics (JAS)
Studies on money supply determinants focus on the Classicists or Monetarists, Keynesians and post-Keynesians variables like income and money multiplier. This research extends the literature on money supply determinants to include the influence of financial liberalization on money supply with a reference to Nigeria between 1980 and 2019, using the Autoregressive Distributed Lag (ARDL) approach. Data used for the study were collected from the 2019 CBN Annual Statistical Bulletin. The study found that financial liberalization is an important factor in determining money supply in Nigeria, in addition to currency ratio, required reserve ratio and high-powered money. As a result, the …
Decomposing Employment Growth In Selected Sub-Saharan African Countries: The Roles Of Structural Changes And Demographic Transition, Abidemi C. Adegboye, Clement A.U. Ighodaro
Decomposing Employment Growth In Selected Sub-Saharan African Countries: The Roles Of Structural Changes And Demographic Transition, Abidemi C. Adegboye, Clement A.U. Ighodaro
CBN Journal of Applied Statistics (JAS)
The challenge of employment growth in SSA countries goes beyond economic growth prospects to include structural and demographic dimensions. This study examines the relative contributions of structural changes and demographic factors to employment growth for a set of sub-Saharan Africa (SSA) countries using available annual data from 1970 to 2014. A decomposition approach is employed in the study using the Jobs Generation and Growth (JoGGs) method which generates results that show distributive components of employment, productivity and output changes over time in a system whereby the roles of economic structure and demographic changes could be observed. The study shows that …
Pass-Through Of Crude-Oil Price Shocks To Consumer Prices In Nigeria: Pre And Post 2008 Global Financial Crisis, Eric I. Otoakhia
Pass-Through Of Crude-Oil Price Shocks To Consumer Prices In Nigeria: Pre And Post 2008 Global Financial Crisis, Eric I. Otoakhia
CBN Journal of Applied Statistics (JAS)
This study investigates the responses of consumer price index (CPI) to crude oil price shocks in the pre- and post-2008 global financial crisis. The study used the Structural Vector Autoregressive model to analyze monthly data from 2000M01 to 2019M12. The impulse response analysis showed that for pre and post-crisis periods, oil price shocks have a positive impact on CPI. This impact was an insignificant direct momentary increase in pre-crisis CPI before dissipating. Conversely, the impact on post crisis CPI response tends to be stable and long-lasting starting from the third month. The confidence bands for the post crisis CPI are …
Asymmetric Impact Of Oil Price On Inflation In Nigeria, Sani Bawa, Ismaila S. Abdullahi, Danladi S. Tukur, Sani I. Barda, Yusuf J. Adams
Asymmetric Impact Of Oil Price On Inflation In Nigeria, Sani Bawa, Ismaila S. Abdullahi, Danladi S. Tukur, Sani I. Barda, Yusuf J. Adams
CBN Journal of Applied Statistics (JAS)
This study examines the impact of oil price shocks on inflation in Nigeria. A Non-Linear Autoregressive Distributed Lag (NARDL) approach was applied on quarterly data spanning 1999Q1 to 2018Q4. Results showed that oil price increases led to increase in headline, core and food measures of inflation in Nigeria. However, a decline in oil price resulted in a decline in the marginal cost of production and culminated in moderation of domestic inflation. Furthermore, negative oil price shocks led to higher inflation in Nigeria when exchange rate is dropped from the models, indicating that exchange rate absorbed the impact of oil price …
Markov Regime-Switching Autoregressive Model Of Stock Market Returns In Nigeria, Oluwasegun A. Adejumo, Seno Albert, Omorogbe J. Asemota
Markov Regime-Switching Autoregressive Model Of Stock Market Returns In Nigeria, Oluwasegun A. Adejumo, Seno Albert, Omorogbe J. Asemota
CBN Journal of Applied Statistics (JAS)
This study is designed to model and forecast Nigeria’s stock market using the All Share Index (ASI) as a proxy. By employing the Markov regime-switching autoregressive (MS-AR) model with data from April 2005 to September 2019, the study analyzes the stock market volatility in three distinct regimes (accumulation or distribution – regime 1; big-move – regime 2; and excess or panic phases – regime 3) of the bull and bear periods. Six MS-AR candidate models are estimated and based on the minimum AIC value, MS(3)-AR(2) is returned as the optimal model among the six candidate models. The MS(3)-AR(2) analysis provides …
Impact Of Interest Rate Differential And Exchange Rate Movement On The Dynamics Of Nigeria’S International Private Capital Flows, Tari M. Karimo
Impact Of Interest Rate Differential And Exchange Rate Movement On The Dynamics Of Nigeria’S International Private Capital Flows, Tari M. Karimo
CBN Journal of Applied Statistics (JAS)
The study examines the impact of interest rate differential and exchange rate movement on the dynamics of Nigeria’s international private capital flows from 2010Q1 to 2019Q4. It uses the interest rate parity theory and the Markov Switching Time Varying Transition Probability Modelling approach. Findings show that interest rate differential does not explain the dynamics of aggregate capital and Foreign Direct Investment (FDI) flows, but significantly explains Foreign Portfolio Investment (FPI) flows. Also, Movement in real exchange rate is significant in explaining outflows and inflows in FPI, and inflows in FDI, but neutral to aggregate capital flows. The study concludes that …