American Finance & Banking Review http://www.cribfb.com/journal/index.php/amfbr Centre for Research on Islamic Banking & Finance and Business en-US American Finance & Banking Review 2576-1226 United States and the Middle East after the Cold War http://www.cribfb.com/journal/index.php/amfbr/article/view/135 <p>The United States emerged as the most powerful country after World War II and as such found itself in an influential position to be involved in the future and destinies of many countries across the globe. The U.S. played a major role in the post War economic reconstruction in Europe and rendered assistance to many European states. American power at this time was seen to have extended to other parts of the globe, including the Middle East, which has been a region of interest to outside powers. This short paper tries to look at U.S. ambitions in the region and how far the U.S. has gone in achieving these ambitions. The paper argues that U.S. policies in the Middle East were in the long run, a failure, despite whatever successes achieved, following certain developments in the region, beginning with the 1979 revolution in Iran.</p> Yusuf Ibrahim Gamawa ##submission.copyrightStatement## http://creativecommons.org/licenses/by/4.0 2018-09-13 2018-09-13 3 1 1 4 The Determinants of the Foreign Direct Investment on the Macroeconomic Variables: The Case of the Algerian Economy http://www.cribfb.com/journal/index.php/amfbr/article/view/136 <p>Foreign direct investment in Algeria as a percentage of GDP represented 0.9% during the last decade. The goal of this study is to assess the effect of Foreign Direct Investment on Algerian economy through an empirical analysis by applying the bounds testing ARDL and ECM-ARDL using annual data for the period 1970-2014. As far as the role of FDI is concerned, we shall try to highlight <em>its effect</em> that may show causal relationships to <em>non</em>-<em>hydrocarbon</em> GDP, <em>non</em>-<em>hydrocarbon</em> export, industry and employment in long run. Our estimation of an ARDL model indicates that the political and macroeconomic stability are not enough to attract FDI to help non-hydrocarbon sectors drive economic growth.</p> Ahmed Smahi ##submission.copyrightStatement## http://creativecommons.org/licenses/by/4.0 2018-09-24 2018-09-24 3 1 5 11 Oil Price Volatility, Exchange Rate Movements and Stock Market Reaction: The Nigerian Experience (1985-2017) http://www.cribfb.com/journal/index.php/amfbr/article/view/200 <p><em>Given the observed volatility in crude oil prices in the international oil market and the role which oil and gas play in the Nigerian economy, this paper is an attempt to investigate the impact of crude oil prices and foreign exchange rate movements on stock market prices in Nigeria. In addition, the paper examined whether there is any volatility pass-through between the dollar price of Nigerian crude oil, foreign exchange rate of the Naira and stock market prices respectively. Data employed for the study are monthly values of the Nigerian Stock Exchange (NSE) All-Share Index (ASI), Dollar price of Nigerian Crude Oil (DPO) and the Official Exchange Rate of the Naira to the US Dollar (FXR) from January, 1985 to August, 2017. The methodology adopted for the study include the ADF unit root tests, Johansen co-integration tests, the ECM technique, Granger causality tests, variance decomposition as well as the GARCH(1,1) to model the volatility relationships among the variables. Findings reveal that there is one long-run dynamic co-integrating relationship among the variables ASI, DPO and FXR while the ECM results indicate that Crude oil price (DPO) significantly impact on Stock market prices. The Granger causality test reports a bi-directional causality relationship between ASI and DPO and a unidirectional causality running from FXR to ASI. The ARCH-GARCH volatility analysis demonstrates vividly that stock market prices in the NSE exhibit ARCH effect with a significant and positive first order ARCH term. The GARCH term is also positive and significant indicating that previous month’s stock market price volatility significantly influences current stock market volatility in the NSE. In addition, findings show that the volatility of dollar price of Nigerian oil (DPO) in the world oil market is significantly transmitted to the volatility of stock market prices in Nigeria.&nbsp; The pass-through effect of the volatility of exchange rate (FXR) to the volatility of stock market prices is also positive and significant. These findings offer significant informational signal to policy makers, portfolio managers/advisors and the investing public in achieving optimal asset and portfolio profile.</em></p> Onyemachi Maxwell Ogbulu ##submission.copyrightStatement## http://creativecommons.org/licenses/by/4.0 2018-11-12 2018-11-12 3 1 12 25