International Education, Its Benefits and Issues

Instruction researchers contend that universal training helps in making attention to different people’s societies, world districts, and further makes understudies acquainted with worldwide and global issues. It likewise helps in encouraging the soul of multiculturalism as a key driver of globalization empowering understudies to convey in unknown dialects among other benefits.Advertising We will compose a custom paper test on International Education, Its Benefits and Issues explicitly for you for just $16.05 $11/page Learn More However, the degree of universal instruction to accomplish these objectives definitely is subject to the presence of homogeneity of its methodologies sent by worldwide training organizations. To decide if this homogeneity exists, it is somewhat relevant that a correlation strategy exists for all global instruction establishments to embrace. In any case, this paper contends that different issues exist in making universal correlations. The primary issue in making universal correlation comes from the presence of contrasts in the meaning of the term itself. The term global instruction draws in legitimate and frequently profoundly discussed definitions. A few researchers have thought about the importance of the term from two general points of view, which are reliant on levels of student’s associations. One point of view lies on the discernment that worldwide instruction gets ready understudies from varying countries to accept a functioning part as members in social, financial and political issues of an interconnected world (Cambridge Thompson 2004, p.162). To accomplish this, it is vital that understudies learn unknown dialects. Spellings (2007) bolsters this contention and further contends that learning unknown dialects would empower the U.S individuals to convey adequately the American thoughts and furthermore values while consequently America would go to a superior comprehension of different worldwide issues (Spellings 2007, p .5). Acknowledgment of this fantasy is clearly inconceivable because of the presence of shifting accentuation on explicit zones in worldwide training. Making examination is then additionally an issue. As a method of model, Spellings (2007) contends that, in China, Thailand, and the European Union, it is obligatory for the understudy to read remote languages.Advertising Looking for article on instruction? How about we check whether we can support you! Get your first paper with 15% OFF Learn More Compared to America, just 44 percent of secondary school understudies considered an unknown dialect in 2002 with under 1% contemplating Korean, Urdu, Japanese and Russian consolidated (Spellings 2007, p.6). The subsequent methodology in characterizing worldwide training is taking a gander at it as instruction that helps in rising above different national fringes through advancement of trades of different individuals of various nationalities. In this unique circumstance, global instruction inv olves understudies making a trip to do their examinations in different higher learning foundations branches set up in remote countries as a piece of trade programs (Cambridge Thompson 2004, p.167). This is the position additionally held by Ignacio and Morentin (2003) who contend that universal instruction is training for worldwide comprehension and aides in cultivating majority rules system, harmony and human rights among the worldwide society (pp.5 - 8). Be that as it may, Cambridge and Thompson (2004) challenge this view. They contend that â€Å"the lion's share of universal schools work in an assortment of neighborhood settings and typically understudies don't make a trip appallingly far to go to a worldwide school since they dwell with their folks, who are ostracizes working in a nation that isn't their home, and go to a global school in their area or a close by city† (p.166). In this unique circumstance, the choice to go to a worldwide school isn't by uprightness of the need to cultivate universal seeing but since of situation. In making examination of universal instruction, information identifying with different instructive frameworks combined with their interrelationships in various countries is fundamental. Such information remember information for the conditions in which different instruction frameworks work in regard to socioeconomics combined with social-monetary attributes of the populace including open help, extraordinary gatherings of understudy and money related assets (Schleicher 1999, p.216).Advertising We will compose a custom paper test on International Education, Its Benefits and Issues explicitly for you for just $16.05 $11/page Learn More Though this information might be accessible in various countries, variety in structure and administration in universal training frameworks makes instructive examinations a bad dream. This infers in spite of such information being broadly precise and adequate to satisfy the need of national request ers, the information may stop being of any essentialness corresponding to universal instruction correlations because of the presence of contrasts exuding from varying arrangements and definitions. Clearly, instruction frameworks may not be conceivable to hold steady to encourage legitimacy of different examinations particularly in circumstances where training structures frameworks and different strategy needs continues changing with time. Seemingly, one can accomplish exact correlations through narrowing down objects of global instruction correlation with a given shared factor, for example age. Nonetheless, Spellings (2007) illuminates that â€Å"while around 34 percent of white grown-ups had acquired a bachelor’s degrees by age 29†¦the same was valid for only 18 percent of African American and 10 percent of Hispanic grown-ups in the age cohort† (pp.4-5). This shows contrasts in term of article under examination exist and consequently elevating the troubles of mak ing legitimate correlations. Alternate points of view of review elements of instruction present difficulties in making correlations of global training. As a method of model, a few countries consider training to be serving open interests. Others consider training to be a â€Å"commodity† liable to activity of different hypotheses of progress, for example, responsibility speculations, and new open administration draws near (NPM). Without a doubt, Schellenberg (2004) figures that â€Å"the privatization of training today acquaints industry with the arrangement of instruction in another manner and changes the idea of training as an open establishment to instruction as an attractive product† (p.80). Absence of blended perspective on capacity of instruction makes its universal correlations troublesome. This remains constant dependent on the feeling that, upon its commoditization, it is an item purchased by the individuals who can manage the cost of it (OECD 2005). Looking fo r positions in the worldwide schools thusly quits being a method of guaranteeing harmonization of legitimate people’s societies to a lavishness living style.Advertising Searching for article on training? How about we check whether we can support you! Get your first paper with 15% OFF Find out More Seemingly predictable with Schellenberg (2004), â€Å"as the state’s job in giving instruction changes, its residents lose the open doors in the instructive frameworks to build up all the limits required for full resident support (p. 94)†. Then again, where individuals see training as serving open interests, advancing global comprehension being one of them, looking for worldwide instruction clearly fills in as a methods for separating national outskirts, and presenting understudies to openings for work universally. Distinctive accentuation of specific territories of instruction additionally presents issues to making examinations of worldwide training. Spellings (2007) fight that while the U.S advanced education concentrates more on imagination and a basic reasoning, different countries, for example, Japan underscore more on science and specialized subjects regularly making them increasingly serious both monetarily and instructively (p.4). In a perfect world, this infers endeavoring to make global examinations of these two national trainings, a typical item for investigation isn't clear. Subsequently, in an undertaking to make understudies serious globally, the U.S needs to concentrate more on the zones where different countries are underlining. From this contention, it is maybe apparent that the focal point of global instruction is substantial. While a few countries have monetary addition related with it, others look for encouraging harmonization of individuals convictions and qualities over the globe and subsequently normal stages for correlation neglect to exist. As I would like to think, and in the light of the above issues in making correlations of global instruction, I don't accept that it is conceivable to make worldwide examinations. From one measurement, it is clear that varying countries have distinctive accentuation of their training frameworks. Where understudies concentrate in outside countries accentuating on specialized subjects like math and designing like in Japan (Spellings 2007, p.4), all things considered, they would follow a similar accentuation in choosing their territory of specialization rather than the accentuation subjects in their local countries. Thusly, making examination of universal training in the two countries is tricky by the reality there needs normal objects of correlation. Furthermore, contrasting segment attributes of fluctuating gatherings under correlation in various country additionally makes the entire thought of looking at universal dangerous. For example, in instances of contrasts of normal ages at which individuals obtain four year college educations presents issues in making examination since individuals of various ages are foreseen to have varying subjective capacities. Decisively, a move in transit individuals and state see the elements of training, nonexistent of varying regular items for examination, and contrasting territories of instructive accentuation make correlations of universal instruction incomprehensible. Furthermore, as contended by Schellenberg (2004), â€Å"as the state’s job in giving educ

Robert Andrew Millikan Essay -- essays research papers

Robert Andrew Millikan      In 1909 Robert Andrew Millikan set up a device to quantify the charge of an electron inside an exactness scope of 3%. In 1913 he came out with a estimation of the electrical charge that would serve the universe of science for a age.      Young Millikan had a youth like most others: he had no clue about what his calling would be. When he attempted to bounce from a skiff to a dock, falling in the water, and nearly suffocating. Here he had his first record with material science - Newton’s Third Law of Motion: "For each activity there is an equivalent and inverse reaction". Indeed, even in High School Physics courses Millikan was not really vivacious, which may have had a little to do with his teacher’s propensity for spending the summers utilizing a divining pole to discover water. After Millikan moved on from Maquoketa High he was acknowledged into Oberlin College. Robert really started his material science profession when he showed a rudimentary course in line with his Greek educator during his sophomore year. He at that point moved to Columbia University from which he graduated in 1893 as the main understudy graduate in material science. After this achievement Millikan made a trip to Germany to concentrate with such educators Planck and others. At the point when this period was on his resume Millikan was offered a position in the Physics office at the University of Chicago and Millikan took it. In the wake of instructing for a period Millikan concluded that material science could o...

Wizard of Oz free essay sample

There were numerous hypothetical suppositions made by individuals anyway the writer kept on saying it was just a childrens book. There was never any evidence legitimizing what individuals accepted about the story. The qualities Of this article were all the proof from the book. Dorothy wearing silver shoes on a brilliant street could have implied numerous things. A key board in the populist stage was an interest with the expectation of complimentary silver. The great witch who wore white could have been another political similarity. The word Oz itself s another word for an ounce of gold or silver.Bam, the writer of The Wizard of Oz had additionally expounded on governmental issues beforehand. A significant number of those things could have a more profound importance, however to the vast majority its only a childrens story. He asserted that the story was neither a master Populist anecdote nor an enemy of populist illustration. The creator of The Wizard of Oz pointed not to instruct however to engage; he planned to divert not to address. We will compose a custom article test on Wizard of Oz or then again any comparable subject explicitly for you Don't WasteYour Time Recruit WRITER Just 13.90/page In this manner, he accepted the story is best seen as an emblematic and mocking portrayal of the populist occasion and politics.What is referred to a great many people as a childrens book can likewise be viewed as a political story. Oz works on two levels, one exacting and the other representative and political. Its intriguing how the creator consolidates it on the two levels. Nonetheless, the shortcoming in this article was that there was no verification. It was all fair gossipy tidbits and noise. The point he was attempting to demonstrate couldnt be demonstrated. Anybody can confuse a story or state what they think the creator implied, yet just the creator himself will know the genuine importance.

Article Review on General Moters Debacle Research Paper

Article Review on General Moters Debacle - Research Paper Example General Motors needed to get back to around 1.6 million vehicles so as to fix their switches which were causing unexpected shut down in vehicles while moving. The defective start switches are accounted for to be connected with perilous driving circumstances which brought about 31 accidents and 13 casualties in America since 2004 (Young, 2014). As an ever increasing number of subtleties are uncovering about the issues recognized in start switches it has become certain that the administration of General Motors acted very untrustworthy. Then again examiners have additionally shown that the corporate administration of General Motors is fundamentally delayed in reacting to the customers’ wellbeing and security issues (Young, 2014). This really prompts the non-thought of business morals and ethics while disregarding the central needs of clients. For example, in the book ‘Business Essentials’ Ebert and Griffin have expressed that it is the prime obligation of organization to comply with the law and morals which fundamentally expects them to create quality items. In addition, the administration must have the option to decidedly add to the general public (Ebert, 2014). Be that as it may, in the event that we see the job of General Motor’s the executives, at that point it is obviously mirrored that they di dn't act morally which likewise bargaining the more noteworthy social concerns and corporate social duties of the association. The CEO of General Motors, Mary Barra said that she came to think about the issue of start switches in January. On the opposite side Robert Lutz who is the worldwide item development’s Vice Chair denied to have any data about start switch issues up to this point (Young, 2014). At the point when CEO was asked about for what valid reason she wasn’t educated about the start switch blames then she reacted that her being ignorant of the episode ought not be stunning for the examiners since General Motors has around 219,000 workers (Muller, 2014). The association is engaged with complex business activities

Educational Apps for Students

Educational Apps for Students Educational Apps that Help You Get Smarter Home›Tips for Students›Educational Apps that Help You Get Smarter Tips for StudentsBest educational apps for students“Educational”, or, in other words, such which is intended to educate and enlighten, is a widely used adjective meant to describe the main purpose of all the means and tools for studying. Among those tools, apps for studying should be distinguished as the most helpful for modern students. However, a huge variety of app offerings often make it difficult to make the right choice. With the help of our short guide on the best educational apps, it will be much easier to improve your studying efforts and expand your knowledge. EdXA huge portfolio of higher education courses (mainly in science), which edX suggests on the not-for-profit basis is a perfect opportunity to broaden your knowledge with the help of both timed and self-paced classes. The courses are free, except for those semester-long courses for undergraduate and g raduate credits.Khan AcademyThe completely free tutorials with exercises will impress you with generous language and video subtitles support. Its objective is to provide “a world-wide education for everyone” and help students to both improve the existing knowledge and discover new interesting topics.Studious It is a perfect companion for your studying process as it keeps on track all your homework and is responsible for reminding to complete your tasks on time. Its another advantage is that Studious determines the behaviors of your phone making it vibrate or be completely silent during classes, depending on the settings you’ve specified before. My Study LifeAnother educational app with the assistance of which you’ll find it easier to manage your student life is My Study Life. It allows a student to add, store and synchronize his or her classes, home tasks and exams. Moreover, My Study Life enables a student to share timetables with teachers and classmates as well as reminds about unfinished assignments or upcoming tests. StudyBlueAn app with the help of which you can create, edit, copy and share your digital flashcards without charge, also provides you with an opportunity to quiz yourself, keep track of the personal progress and synchronize all your information with the devices you possess.   TED Talks videos is a unique platform for personal development, with the help of which each student can get to know more about other people’s experience. This app doesn’t bear educational purpose only, but is aimed at influencing people’s outlook and shaping our general perception of the world: the way it was, the way it is and the way it should or will be. EasyBib It is an app which helps the students to create and format bibliographies quickly, easy, without pain and endless efforts to arrange the information properly. Moreover, EasyBib is simple in the usage. Just visit the site, choose the appropriate source and click the bottom format to get a correct a utomatically changed bibliography.WoybUseful innovative memory app for students. Brain Training App for android and iphone that really works. Your exams will be prepared in time using this app. Its your best study strategy! Try it now for free on App Store and Google Play!Other helpful and worth mentioning apps for students that have a bit specific purpose are Periodic Table, which helps to learn more about the elements and is more useful for Chemistry students and Star Walk, which provides the students with the information about celestial bodies and celestial events. Get smarter with these educational apps, designed specially for you!

The legacy of Abraham Lincoln - 550 Words

The legacy of Abraham Lincoln (Essay Sample) Content: The legacy of Abraham LincolnStudentà ¢Ã¢â€š ¬s nameProfessorà ¢Ã¢â€š ¬s nameCourse levelDue dateApril 16, 1865, an obituary For Abraham LincolnAbraham Lincolnà ¢Ã¢â€š ¬s death announcement met Americans with great shock and a mood of uncertainty. The assassin John Wilkes escaped, but the government is on a serious manhunt. With the loss of our sixteenth president on the April 15th, 1865, in a social event as a result of non-patriotic citizenà ¢Ã¢â€š ¬s conspiracies, we have lost a great leader.Born in 1809 in Kentucky to Thomas Lincoln and Nancy Hanks, Lincoln is a true son for America. Dying at age 56, Abraham has contributed immensely to our nation politically, economically and socially (Thomas, 2008). He has achieved a lot, but not enough to deserve this cold blood quick send off to his grave.Lincoln, due to his gained outspoken nature was chosen to be an army captain in the Black Hawk war of 1832. The appointment set his first political step and since then hi s contribution include the appointment to the Illinois legislature. With continuous political experience he noticed enslaving blacks was not morally upright, he believed that people could be more economically productive when free than enslaved (Schwartz Schuman, 2005). Lincoln was considered to be charismatic and a good story teller that contributed to the unity of the Union army during the American civil wars. He faced opposition from his generals, cabinet secretaries at times from American citizens, but he was determined to see America through the civil wars as commander in chief. He created a sound foreign policy that discouraged other nations from interfering with the civil war. Economically he signed into law the transcontinental railroad bill.Lincoln leaves four children and a widower; the funeral will be attended held on May 4th at the Oak Ridge Cemetery. Friends and family are invited to attend.May God rest his soul in peaceApril 16, 2015 on a remembrance of his legacy.Abra ham Lincoln, the sixteenth president of the now United, States of America, died one hundred and fifty years ago on an assassination. The president was attending a social event at the Fords theatre where John Booth assassinated him. Today is a memorial moment to celebrate an American hero; Lincoln is the reason some of the most significant things we enjoy exist.Lincoln as a child grew with slavery being the order of the day but with time he came with a contrary idea and through the legislative initiative during his leadership, slavery was abolished. He was guided by a moral character that once the current President Obama in one of his speeches acknowledged that he is a model leader to be emulated. He was a self-driven person and taught himself law and won several cases that corporate companies sorted for him to help in cases. All races interact on American grounds because of his humane and inspiri...

The Inflation And Stock Returns In Nigeria - Free Essay Example

Sample details Pages: 23 Words: 6758 Downloads: 10 Date added: 2017/06/26 Category Finance Essay Type Analytical essay Did you like this example? This study empirically examines the relationship between inflation and stock returns in Nigeria during 1997-2006. The study focuses on different econometric models to investigation this relationship using monthly data of the All Share Price Index from the Nigerian Stock Exchange and Nigerian Consumers Index. The simple OLS regression result suggests that the residuals are stationary, which implies that stock returns and inflation are co integrated. Don’t waste time! Our writers will create an original "The Inflation And Stock Returns In Nigeria" essay for you Create order Therefore we can conclude that there is a long run relationship between stock returns (LOGASI) and inflation (LOGCPI).The Engel co-integration results reveals that there is long run relationship between inflation and stock returns .the study further goes on to the determine the causal long run relationship using the Error Correction Model (ECM). This article offers evidence of a positive relationship between stock market returns and inflation. This result confirms that stock returns act as a hedge against inflation. CHAPTER ONE INTRODUCTION 1.1 Background to the Study The advent of oil boom in Nigeria in the early 1970s, has led to the instability of stock prices. This has been attributed to many factors such as: budget deficit monetization, inflow of foreign capital from crude oil sales and financial markets creation of excess private domestic credit. Since early 1970s, inflation rates in Nigeria has been highly unstable; the high inflationary change was in excess of 30 percent. This is evident in the high correlation of money supply growth and high inflation due to the fact that real economic growth is less in real term to money growth. This can be observed from the growth in money supply and some structural factors such as; supply shocks arising from famine, unfavorable terms of trade and devaluation of currency. Furthermore, Structural Adjustment Program (SAP) introduced by the government in the late 1980s also accounted for the increase in price level in the economy. Consequently, inflation in Nigeria has overtime responded to structural changes. These changes can be characterized into four periods based on the pattern and events that occur at that period. The first period of inflationary increase in Nigeria was noticed from 1974 to 1976; inflation increased by 30 percent. This inflationary pressure was as a result of the following: High cost of agricultural produce caused by drought in the Northern part of Nigeria, Excessive oil revenue monetization, increase in wage rate based on the recommendation of the Udoji commission of 1974, Folawewo (2005), and political instability The second period was from 1983 to 1985 when inflation rate reached 40 percent. This period noticed very little economic growth, The Nigerian government was under intense pressure from debtor groups to accept International Monetary Fund conditionalitys of devaluation of domestic currency because government debt has increased above 70 percent while excess money growth was around 41and 43 percent. This period also witnessed poor ex ternal trade performance.CBN (, 2006) The third period was from 1987 to 1989 when inflation rate hovered around 35 percent. During this period, the economy experienced high inflationary pressure brought about by fiscal expansion noticed in the 1988 budget, the debt for equity swaps conversion method adopted by the Government of Nigeria and the drastic contraction in monetary policy, all accounted for this change that span through to the early 1990s. Finally, the fourth period occurred between 1993 and 2000, as a result of fiscal deficit expansion which caused a 70 percent increase in money supply with a knock-on effect on domestic credit of the private sector of the economy.CBN, (2006) Overall, inflationary pressure can be largely attributed to structural factors such as; real income reduction caused by fluctuation in oil revenue, high nominal wages and debt obligation in form of expansionary fiscal deficit. These invariably mean that over the years, fluctuation in commodit y price is a normal feature of the Nigerian economy. One major commodity considered in this study is the capital market stock, i.e. the Stock market. Stocks listed in Nigeria are traded on the floor of the Nigerian Stock Exchange (NSE) while the Securities and Exchange Commission (SEC) is the apex regulatory body which oversees the activities and affairs of the major players on the floor of the Stock Exchange. The Nigeria Stock Exchange was established in September 15, 1960 but commenced business on June 5, 1961 with 19 securities listed and traded on the Lagos Stock Exchange. Based on the recommendation of the Government Financial System Review Committee in 1976, the Lagos Stock Exchange was renamed and made part of the Nigerian Stock Exchange in December 5, 1977. The Nigerian Stock Exchange has nine branches established in major commercial cities in Nigeria. The main exchange of stocks of large enterprises are traded in the Nigerian Stock Exchange while small and medium scal e enterprises are listed and traded in the Second tier Securities Market (SSM). From 1963 to 1990, the Nigerian stock exchange witnessed an overwhelming increase in government stock which exceeded the equities of industrial companies; however this trend changed from 1991. The value of equities of industrial companies increased to billions of Naira, while government stock traded on the Nigerian Stock Exchange was worth millions of Naira this decrease continues till date, a development to the deregulation of the economy. Despite the increase in market capitalization noticed in the economy at that period, the ratio of this amount to the Gross Domestic Product and Gross Fixed Capital Formation was still low. This increase was between 4.8% and 25.4% for gross domestic product while the ratio for gross fixed capital formation is between 28% and 55% from 1963 to 1990 (CBN, 2006). The ratio of market capitalization in the gross domestic product and gross fixed capital formation increased geometrically from 1990 to 1995. Although there was decrease in the share of market capitalization in gross domestic product and gross fixed capital formation, the return on investment did not follow the same pattern. This decrease noticed at that period was caused by a banking crisis in which a total of 26 banks were liquidated in 1998. However, with the recapitalization of the banking sector in 2005, the industry remains the most active participant in Nigerian stock market up till date. The trend in Nigeria Stock Exchange causes the price and return on stocks to be highly volatile. 1.2 Problem Statement Price stability is essential in determining whether an economy is stable or not. Inflation which is the constant increase in price creates uncertainty in the economy; uncertainty makes both domestic and foreign investors unwilling to invest. In Nigeria inflation has led to increase in nominal interest rates which affect the value of interest payment of banks and financial institutions. Furthermore, determination of the problem caused by inflation depends upon the degree in which inflation is anticipated correctly or not. If inflation is anticipated correctly and the monetary authority is seen to be credible, the fluctuation in price would be managed effectively but if inflation is unanticipated, some economic agents will gain while others will lose. Unanticipated inflation impact negatively on saving ability of the citizens and as a result, low saving leads to a fall in the demand for stocks and equities as financial wealth. This decrease in demand causes the price of equities to f all thereby reducing returns on equities and stocks. Furthermore, the prices of stock determine how effective and efficient the stock market allocates shares and equities based on preference and availability of market information. Increase or decrease in price of stock create uncertainty for the investors and in turn affect the demand and supply of stocks. Therefore, general increase in price level may affect peoples potential investors investment decision which has negative impact on the total returns on stocks in the economy at large. This situation is prevalent in the Nigerian economy; therefore there is the need to examine the effect of inflation on stock returns and its implication on investment. The Fishers hypothesis (Fishers effect) suggests that stocks or equities hedge or evade inflation, empirical investigation suggest that inflation and stock returns are negatively related. This study will be looking at relationship between inflation and stocks in Nigeria. The stud y of this relationship is essential in improving and in the understanding of stock markets, thus providing standards for decision-making about asset allocation.This study contributes to the existing literature by providing evidence for whether inflation affects stock returns both in the long run and in the short run. 1.3 Justification for the Study Despite the large number of empirical studies on the relationship between inflation and stock returns, there is no general consensus on the causal direction of this relationship. Empirical works as; Nelson (1976), Shwarts (1977), Fama (1981), Geske and Roll (1983), Gultekin (1983), Marshall (1992), Bakshi Chen, (1996), Zhao (1999), Chatrath et al (1997), Spyrou (2001), Omran and Pointon (2001), Crosby (2001), Gallagher and Taylor (2002) and Floros (2002), suggested a negative relationship between inflation and stocks while Boudoukh and Richardson (1993), Graham (1996) and Choudlery (2001) in different studies take the opposing view, i.e. that there exists positive relationship between inflation and stock returns. However, most of these studies were carried out in industrial nations and some selected developing countries most especially Latin American countries. Specific studies on the exact relationship between inflation and stock returns in Nigeria have not been explored rigor ously. Furthermore, considering the negative impact of inflation on prices of commodities in Nigeria coupled with the volatility of stock returns, this study seek to provide a rigorous analysis of the dynamics of inflation and its implication on stock returns in Nigeria using an Error Correction Model to create a parsimonious and encompassing model that would show both short-run and long-run relationship between inflation and stock returns in Nigeria. 1.4 Plan of Study Following the introductory remarks in chapter one, chapter two will review the existing literature on this subject. While chapter three will focus on the theoretical framework, methodology, model specification, estimation technique and sources of data. The summary of result of the empirical analysis is presented in chapter four while the study will be rounded up in chapter five with summary of findings, policy implication and conclusion. CHAPTER TWO LITERATURE REVIEW 2.1 Introduction Section 2.2 of this chapter discusses the underpinning theories of inflation and stock returns. Section 2.3 examines the empirical literature review on inflation and stock returns this is to help identify the link between inflation and stock returns. Finally section 2.4 examines the methodological literature on inflation and stock returns. 2.2 Theoretical Literature Review on Inflation and Stock Returns The Fisher hypothesis suggests that there is a positive relationship between interest rates and inflation. (Berument Jelassi, 2002) Fisher (1930) argues that nominal interest rate is entirely a sign of the existing information in relation to the likely future values of the rate of inflation. This hypothesis has come to be known as à ¢Ã¢â€š ¬Ã‹Å"à ¢Ã¢â€š ¬Ã‹Å"the Fisher effect in the economic literature; it states that expected nominal rates of interest on financial assets should move one-to-one with expected inflation. Choudhry (2001) Fisher hypothesis, in its strict sense, predicts a positive homogeneous relationship of degree one between stock return and inflation. (Luintel Paudyal, 2008) The proxy-hypothesis was introduced by Fama (1981) to explain the predominance of negative stock return-inflation trend. The main principle on which Famas version of the proxy-effect hypothesis is based on is the observed negative relationship between inflation and stock returns which app ears to be spurious since this relationship is a result of the positive relationship that exist between stock returns and expected economic activity and an inverse relationship between expected economic activity and inflation. Inflation simply serves as a proxy for expected economic activity in a statistical relationship between stock returns and inflation. (Lee U. , Monday, June 22 1998) The proxy hypothesis states that the negative relationship between inflation and stock returns is spurious and really only proxies for the positive relationship between stock returns and real variables. Previous testes of the proxy hypothesis have used actual values instead of forecasted values for the real activity variable. (McCarthy, Najand, Seifert, 1990) did not find a support for the proxy hypothesis using only forecasted variables. Gonedes (1981) the failure to use indexation means that real income tax rates will vary directly with rates of inflation. This substantive effect of mere b ookkeeping methods is frequently predicted even though it is known to have some adverse implications. This is the tax effects of inflation hypothesis. 2.3 Empirical Literature Review on Inflation and Stock Returns The empirical literature on the impact of inflation on stock returns records major contribution by different scholars over the years. But the empirical evidence provided by most of these studies has been mixed, and a consensus has not yet emerged. While studies like Pierrel and Kwok (1992), Geske and Roll (1983), Floros (2002), Ugur (2005), Yeh and Chi (2009), Pesaran et al (2001), Den Haan (2000), Crosby (2001), Syros (2001), Roohi and Khalid (2002) among others have found a negative relationship between inflation and stock returns; Boudoukh and Richardson (1993), Graham (1996), Choudhry (2001), Patra and Posshakwale (2006) and Lee et al (2000) among others reported positive relationship between these variables. Concerning the review of the approaches of modeling the effect of inflation on stock returns, Pierrel and Kwoks (1992) estimates and tests the alternative versions of hypothesis that explain the relationship between these two variables. The study employs distributed lag s in order to empirically arrive at a dynamic structure of inflation. Pierrel and Kwoks concluded that this dynamic structure conform to Fama (1981), Benderly and Zwick (1985), and Geske et al (1983) hypothesis that suggest a negative relationship between inflation and return on stocks. Yeh and Chi (2009) tested the validity of the various Hypotheses that explain this relationship. The empirical result of this study on 12 OECD countries shows that these countries exhibit a short-run negatively significant co-movement between stock returns and inflation. Moreover, countries like Australia, France, Ireland and Netherland do not display a long-run relationship between the two variables in equilibrium. This result is consistent with the hypotheses of Fama (1981), Modigliani et al (1979) and Feldstein (1980) which suggested that an increase in inflation reduces real returns on stock. This result is also in line with Caporale and Jung (1997) and Rapach (2002). They argue respectively t hat there exist a negative significant effect of inflation on real stock returns after controlling for output shock and that inflationary trends do not erode returns on stocks. The Fishers Hypothesis was tested by Spyros (2002). His results reflect a contrary view that returns on stocks hedges inflation. This study shows that there is negative but not statistically significant relationship between inflation and stock returns in Greece from 1990 to 2000. In this same vein, Floros (2002) carried the same study on Greece economy and concluded that inflation and stocks in Greece should be treated as independent variables because the result of the various test conducted show that there is no relationship between inflation and stock returns in Greece. Crosby (2001) investigates the relationship between inflation and stock returns in Australia from 1875 to 1996 and found out that the Australian economy does not experience permanent changes in inflation or stock returns. The result shows that there exist short-run negative relationships between these two variables that depend on the period of time that is considered. On the contrary, Lee et al (2000) examine the impact of German hyperinflation in the 1920s on stock returns. This result of this study show that the hyperinflation in Germany in early 1920s cointegrates with stock returns. The fundamental relationship between stocks returns and both realized and expected inflation is highly positive. They concluded that common stocks appear to be a hedge against inflation during this period. Choudhry (2001) in his study on the impact of inflation on stock returns in some selected Latin and Central American countries (Argentina, Chile, Mexico and Venezuela) from 1981-1996, reveal that there is one- to-one relationship between the current rate of nominal return and inflation for Argentina and Chile. Their result also reveals that the lag values of inflation affect stock returns and this result infer that stocks act as a hedge against inflation. Patra and poshakwale (2006) conducted a study on the impact of economic variables on market returns in Greece from 1990 to 1999. Empirical results show that some macroeconomic variable like money supply, inflation, volume of trade and exchange have both short-run and long-run relationship with stock price in equilibrium in Greece while there was no short-run or long run relationship noticed between exchange rate and stock prices. Ugur (2005) in a study on the effect of inflation on return on stocks in turkey from 1986 to 2000 reveal that expected inflation and real returns are not correlated. The results suggest there is a negative relationship between inflation and stock returns which may be caused by the negative impact of unexpected inflation on stock returns. This results did not contradict Fisherian hypothesis because of the non correlation of inflation and real returns but the results is in line with the proxy hypothesis since a negative signi ficant relationship exist between the two variables. Aperigis and Eleftheriou (2002) results also concurred that there is negative link between inflation and stock returns in Greece than in interest rate and stock returns. Similar study like Adrangi et al (1999) and sellin (2001) also support the proxy hypothesis. Khil and Lee (2000) in their study on ten pacific-rim countries and the US that all the countries except Malaysia reveal negative relationship between inflation and stock returns. The tax-effects Hypothesis which asserts that there is negative relationship between inflation and stock returns was tested by Geske and Roll (1983). Empirical result from the reveal that random negative or positive real shock affects stock returns which in turn, signal higher or lower unemployment and lower or higher corporate earnings. This has effect on the personal and corporate tax revenue leading to increase or decrease in the treasury through borrowing from the public. The economy paid for this debt by expanding or contracting money growth and this would lead to higher or lower inflation. They concluded that random shocks on stock returns are both fiscal and monetary in nature in the U.S.A. Roohi and Khalid (2002) considered the Efficient Market Hypothesis and Rational Expectation Theory to investigate the effect of inflation on stock returns. Empirical results of the study suggest that the relationship between real stock returns, unexpected inflation and unexpected growth are negatively significant. They concluded that the control of real output growth makes the negative relationship between these two variables to disappear over time. 2.4 Methodological Literature Review on Inflation and Stocks Returns The empirical relation between inflation and stock returns has been investigated through various approaches since the 1970s. Spyros (2001), adopted Vector-Auto regressive (VAR) model and the cointegration test to confirm if there was any relationship between inflation and stock returns in Greece. Pierrel and Kwok (1992) investigated the relationship between stock returns and inflation in the United State between 1962-1992 using Vector- Autoregressive (VAREC) model, and Granger Causality, Crosby (2001), used Vector-Autoregressive (VAR) model, Ordinary Least Square (OLS) and correlation analysis to examine the relationship between inflation and stock returns in Australia from 1875-1996. Floros (2002), investigated the relationship between stock returns and inflation in Greece from 1988-2002 by considering both the lag and lead periods of inflation and stock returns using Ordinary Least Square (OLS), Johansen Cointegration Test and Pairwise Granger Causality Test. In this same vein , Ugur (2005) used the Ordinary Least Square (OLS) and Standard Granger Causality to examine the relationship between inflation, stock returns and real activity in Turkey. Choudhry (2001), estimate the impact of inflation on stock returns in some selected Latin and Central American countries using the Auto-Regressive Integrated Moving Average (ARIMA), unit root test and spectral regression model. Lee et al (2000); and Geske and Roll (1983), also used ARIMA, OLS and unit root test to investigate the effect of German hyperinflation and stock returns, and the impact of inflation on stocks returns in the USA respectively. Patra and Poshakwale (2006) on the other hand, used the Error Correction Model (ECM), Johansen Cointegration Test and Pairwise Granger Causality Test to show if economic variables such as money supply interest rate, exchange rate, volume of trade and stock prices have impact on stock returns. Yeh and Chi (2009) in their study on 12 OECD countries measures corr elation at different forecast horizon by using Autoregressive Distributed Lag (ARDL) bound test, unit root test and confidence interval method to investigate the inflation illusion hypothesis that suggest that there is negative relationship between inflation and stock returns. Pesaran et al (2001) and Den Haan (2000) also employ the same technique and arrive at the same result. This study examines the relationship between inflation and stock returns in Nigeria. Furthermore a test is carried out to see if theres a cointegration and causality within these variables. Methods used in this study are explained in chapter three. This study fundamentally aims to analyses the above relationship for a period of 1st of January 1997-31st of December 2006 .monthly values of the Nigerian Stock Exchange (NSE) and Nigerian Consumers Price Index (CPI). CPI was collected from the Central Bank of Nigerian Statistical bulletin (2006), while (ASI) All Share Index was collected from Nigerian Stock Exc hange data bank. The reviews of literature above reveal that there are basically four major hypotheses discussing the relationship between inflation and stock returns. These theories are Fisherian hypothesis, proxy hypothesis, tax-effect hypothesis and inflation illusion hypothesis. Considering the level of price stability in Nigeria over the period of our study, the study seeks to adopt Fisherian hypothesis which suggest that stock hedges inflation. This is based on the fact that literature suggests that the price of stock is a major determinant of stock returns which is affected positively by expected or unexpected inflation (consumer price index). CHAPTER THREE MODEL SPECIFICATION AND METHODOLOGY 3.1 Introduction This chapter covers the theoretical framework, specification of the models utilized in the study as well as the methodologies that will be adopted. Accordingly, the estimation procedures, and data requirements; types and sources of data are also discussed in this section. 3.2 Theoretical Framework The reviews of literature in chapter two reveal that there are basically four major hypotheses discussing the relationship between inflation and stock returns. These theories are; 1. Fisherian hypothesis 2. Proxy hypothesis, 3. Tax-effect hypothesis and; 4. Inflation illusion hypothesis. The Fisherian hypothesis is thus specified; Where is the real returns, is the actual inflation which is the combination of the unexpected and expected inflation. While is the error term that is distributed randomly and normally with zero mean and constant variance. This sign of determine if the specification is in line with the fisherian hypothesis. Thus; a significant and positive sign suggest that stock hedges inflation while a negative sign suggest contrary. 3.3 Model specification Based on the outcome of our theoretical framework which attempts to explain the relationship between real stock returns and inflation, we specify the model for estimation. Stock return represented by all share indexes (ASI) is the dependent variable while the explanatory variables are, one-period lagged inflation represented by consumer indexes (CPI) and one-period lagged stock returns (ASI). This is based on the common belief that stock returns (ASI) takes some time to react to inflationary changes (ΆCPI) and changes in all share indexes (ΆASI). In this study, it is assumed that stock returns depend on a set of variables denoted as: Therefore, our empirical specification is stated as: 1 3.4 Methodology and Estimation Procedures This study makes use of Augmented Dickey Fuller (ADF) unit root test to check for the stationarity of the series used in this study, Engle and Johansen cointegration tests is used to confirm if the series have long run relationship while causal long run relationship is determine using an Error correction Model (ECM) which will reveal both the short run and long run relationship between inflation (LOGCPI) and stock returns (LOGASI). 3.4.1 Unit Root Test Assume we have the following AR (1) process: (1) and is a white noise error term. We can manipulate the above expression by subtracting from both sides; Thus: (2) In practice, instead of estimating equation 1, we estimate equation 2 and test the hypothesis that =0. If =0 then that is we have unit root meaning the time series is non-stationary ( for unit root is non-stationary). Thus we can take the first difference of and regress on to see if () is zero or not in order to confirm if the series are stationary or not. Under the null, the estimation for ÃŽÂ ´ is not distributed T-student, so the Dickey Fuller test is required. We use the Augmented Dickey Fuller (ADF) table to correct for possibility of the error term () been auto correlated. The ADF test is specified in the equation below: 3 Where is a white noise Error Term. 3.4.2 Co integration Tests Trended data can be regarded as potentially a major problem for empirical econometrics. Trends may give rise to spurious regression and uninterpretable t- statistics. The stack reality is that in economics most time series are subject to some type of trend while differencing in series until it becomes stationary is one major solution. This has been shown that differencing can lead to loss of long run properties of a series. Based on this the combination of series that are difference once I(1) will give us a model that is stationary I(0). In achieving this aim this study consider two different co integration tests which are; Engle and Granger co integration test and Johansen co integration test. According to Engle and Granger (1987), a time series and are said to be co integrated of order db where d à ¢Ã¢â‚¬ °Ã‚ ¥ b à ¢Ã¢â‚¬ °Ã‚ ¥ 0 written as: CI (db) if: Both series are integrated of order d There exists a linear combination of these variables say; which is integrated of o rder d-b. The vector and is called a co integrating vector. The Engle and Granger co integration test involve two steps; the first step is conducting an OLS regression on the variables in the model specification. The second step is to conduct an ADF test on the residual from the regression if the residual is stationary, then the series are said to be co integrated. The Johansen co integration test on the other hand involves the use of a VAR model and the different maximum likelihood ratios are used to determine the co integrating vectors. These tests are; trace test and maximum eigen value test. Different information criteria such as Akaike Information Criterion, Schwarz information criteria (SIC), Hannan-Quinn Information Criterion, Final Prediction Error and Sequential Modified test Statistic are used in determining the lag length. 3.4.3 Error Correction Model Co integration analysis provides a test for spurious correlation. Finding co integration between apparently correlated I(1) series validate the regression but failure to find co integration is an indication that spurious correlation maybe present thus invalidating the inferences drawn from such correlation. Co integration analysis also helps in formulating the process of dynamic adjustment. However time series data lose their long run properties when they are differenced; allowing only for conclusions on the short run determinations. Therefore there is a need to construct a model that would combine both the short run and long run properties of the variables in the model. As suggested by Engle-Granger representation theorem that if two series are co integrated then they will be efficiently represented by an error correction mechanism. The Error Correction Model is used to capture both the short run and long run properties of the series. The method involves developing a model from it generalized form (over parameterized) to a specific form (parsimonious). In addition if the series are co integrated these dynamic specifications will encompass any other partial adjustment model. The error correction of the Auto regressive distributed lag (ADL) takes the form: where the long run properties are derived from the proportionality between and. The above specification relates the short run change in the dependent variable to the short run change in the explanatory variable.this is called the impact effect () but ties the change to the long run impact through a feed-back mechanism. 3.5 Data The study will utilize monthly time series data from 1997à ¢Ã¢â€š ¬Ã¢â‚¬Å"2006. Data for the variables will be sourced from Central Bank of Nigeria Statistical Bulletin (2006) and the Nigerian Stock Exchange Annual Reports (2006). The variables of interest in this study are all in logs. These variables are; consumer price indexes (CPI) as inflation series and all share indexes (ASI) as stock returns. CHAPTER FOUR SUMMARY OF EMPIRICAL RESULTS The summary of the statistics used in this empirical study is presented in the appendix. As can be observed from the Table, (see pagexx) the mean value of stock returns is 9.359606 while inflation is 8.442205. It is also observed that both LOGCPI and LOGASI are positively skewed. The kurtosis value is positively low and Jarque-Bera (J-B) statistic test value is relatively high. These suggest that the two series are skewed to the right. Figure1below depicts the graphical illustrations of the data that were used in this empirical analysis. The figure reveals that stock return witnessed significant increase within the period of this study. Figure 1: Graphical illustration of statistics used in the analysis Table 1: Stationarity Test Result Variables Levels First Differences ADF 1 ADF 2 ADF 1 ADF 2 LOGASI 0.712327 -2.440634 -9.385773* -9.586827* LOGCPI 0.244088 -2.680445 -9.152876* -9.113796* SOURCE: Authors Computation NOTE: The Augmented Dicky Fuller test ort the null Hypothesis of the presence of Unit root in LOGASI and LOGCPI. ADF 1 includes a constant; ADF 2 includes a constant and a trend while ADF 3 includes none in the test regression as exogenous. Akaike Information Criterion was used to select lags automatically. * denotes significance at all levels (1%, 5% and 10%). The results from the unit root test are introduced in table 1. the above results, shows that the data are not stationary in level, since the critical values are high when compare to the ADF statistics and probability value is very high indicating that it is not statistically significant at all significance levels in ADF 1 and ADF 2 Furthermore, the variables became integrated of order one at first difference in ADF1 and ADF2 considering the low probability value and critical values that are significant at 1%, 5% and 10% when compare to the ADF test statistics. The result in table 1 show that LOGASI and LOGCPI are both nonstationary series at level are both I (1) series. This implies the above Augmented Dickey Fuller (ADF) tests suggest that LOGASI and LOGCPI are of the same order of integration. next, we test for co integration to ascertain if the two series have a long run relationship since the linear combination of I(1) series will give an I(0) series which imply stationarity. The Engle and Granger co integration approach is adopted for this task. This approach involves two steps; the first step involves the estimation of a static OLS regression which captures any possible long-run relationship between LOGASI and LOGCPI. The OLS regression model is specified as follows: (1) Secondly an ADF test is conducted test on the residuals of the OLS regression specified in equation one above. For co integration to exist, the residuals () must be I (0) meaning, the residuals term must be integrated to the order of zero. If the null hypothesis (has unit root) is rejected then and are co integrated. The OLS regression result and ADF test on the residuals are presented in table 2 and table 3 respectively. Table 2: OLS result Dependent Variable: ASI Method: Least Squares Variable Coefficient Std. Error t- Statistic Prob A -0.418581 0.166356 -2.14971 0.0133 0.542636 0.258431 2.099735 0.0380 -0.424224 0.257403 -1.648089 0.1021 1.059213 0.092307 11.47485 0.0010 -0.120618 0.090882 -1.327150 0.1871 = 0.9921 Adjusted = 0.99178 Durbin Watson: 2.04929 Note: model: Table 3: ADF Test on Residual () Lag Length: 0 (Automatic based on AIC, MAXLAG=1) t-Statistic Prob.* Augmented Dickey-Fuller test statistic -11.59144 0.0000 Test critical values: 1% level -2.584877 5% level -1.943587 10% level -1.614912 *MacKinnon (1996) one-sided p-values. Augmented Dickey-Fuller Test Equation Dependent Variable: D(RESIDUAL) Note: the lag length was determine automatically based on AIC using EViews statistical Package In the above test, constant or trend are not included because the test is conducted on the residuals of the OLS regression conducted in equation one above. The result suggests that the residuals stationary which implies that stock returns and inflation are co- integrated. Therefore we can conclude that there is a long run relationship between stock returns (LOGASI) and inflation (LOGCPI). The Engel co-integration results above reveal that there is long run relationship between inflation and stock returns therefore we can determine the causal long run relationship using the Error Correction Model (ECM). The Hendrys modeling strategy of selecting the most appropriate model by going from general to specific is adopted .we use for this purpose information criterion such as Akaike (AIC) Model Specification: (2) The result of the regression conducted on the over parameterized model is presented in table 4 below. Table 4: Regression result of the Over Parameterized Model Dependent Variable: Variable Estimates à ¢Ã¢â€š ¬Ã‹Å"t Statistic Constant 0.0006 0.10087 -0.0794 -2.9266* 0.3131 1.1815 0.3203 1.2232 0.1829 0.7046 0.0869 0.9469 0.1266 1.3634 Note: * indicate 1% significant level From the above results, it is observed that only the lag value of the residual is statistically significant. The model arrived at, is regarded as the more parsimonious model that encompasses both the short run and the long run relationship between stock returns and inflation. Table 5 below, is the presentation of the ECM model. Model Specification: (3) Table 5: Error Correction Model Equation:à ¢Ã¢â€š ¬Ã‹Å"cause Dependent Variable: Variable Estimates à ¢Ã¢â€š ¬Ã‹Å"t Statistic Constant 0.00627 1.11380 -0.06111 -2.28680* 0.43796 1.69621** 0.13611 1.50363 *indicate 5% significance level and ** 10% significance level The above result suggest that there is long run causal relationship between inflation and stock returns. The result reveal that estimated coeffient of the lagged value of the error correction mechanism () is negative and statistically significant. This is in line with the apriori expectation suggested by theory. The result also implies with a significance level of 10% that a change in one period lagged value of inflation () has a positive and statistically significant effect on changes in stock returns (). This means that inflation value of a previous month, has positive influence on the changes noticed in stock returns in the current month. Although, the one period lagged value of stock returns() but it is statistically insignificant. CHAPTER FIVE SUMMARY AND CONCLUSION 5.1Summary of Major Findings Nigerias inflation position post advent of oil reflects the instability in price that was witnessed in internal and external sectors of the economy. The structural changes such as oil revenue fluctuations, deregulation of the economy, real income reduction, changes in nominal wages fiscal deficits are major causes of price instability in Nigeria. In analyzing the trend and pattern of stock returns vis-ÃÆ'  -vis the performance of government stocks and companies stock in Nigeria, This study reveal that between 1963 and 1990 government stock exceed companies stocks. There was a change in this trend from 1991; trading on stocks of industries and companies increased remarkably thereby making companies stocks more attractive and profitable for investors. The increase in market capitalization was noticed in the economy within these periods has no significant effect on gross domestic product and gross fixed capital formation. This situation has negative impact on the return on investme nt in these periods. In summary, the Augmented Dickey Fuller (ADF) test shows that inflation (CPI) and stock returns (ASI) are both I(1) series and the Engel and Granger co integration test which is the linear combination of the I(1) series indicates that inflation and stock returns have a long-run steady-state relationship in Nigeria. The Error Correction model indicates that inflation (CPI) has a causal long run relationship with stock returns (ASI). The one period lagged value of inflation () causes the short run changes noticed in the level of stock returns within the period of this study. The empirical result also reveal that there is a positive relationship between inflation and stock returns which invariably means that inflation (CPI) and stock returns (ASI) move in the same direction which is evident in the graphical illustration. These findings explain why stock returns in Nigeria have witnessed fluctuations. It also revealed that overtime, inflation has been noticed as one of the major factor that determines the fluctuation in returns on investment in Nigeria. 5.2 Conclusion The relationship between inflation (CPI) and stock returns (ASI) has been implied in the model of stock return determination and return on investment literature. However, this relationship has remained largely unexplored. Inflation and what happens to the overall return on stocks is an important indicator that must be considered by any investor when investing on stocks in Nigeria. 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