First Day of High School Essay

The beeping of my alarm clock sounded like a countdown. The first day of high school was only two hours away. I was excited, but a lot more nervous. I got out of bed, got ready, and then was on my way to the bus stop. All I could think of are the stories I heard about high school being so horrible with all the strict teachers, the really hard tests, and of course being a freshman doesn’t help either. The bus ride to the school was only ten minutes, but it seemed a lot longer. When we finally got there, I was more nervous than ever. The day ahead of me was about to get a lot more complicated though with all the work, finding a seat at lunch, and getting lost. After already being late to my first period and all of the not-so-bad classes afterwards, it was lunch time. I dropped off some books at the locker I shared with my boyfriend, and walked down with him. We were a little late when we got there so we ended up sitting somewhere we didn’t want to because the tables were already filled up. We went up to get our lunch and came back to find our seats were taken. We soon found out getting up meant risking your seat. The whole lunch period everyone was talking about how their day went so far. Most of them were complaining, including me. Then the bell rang and it was time to go to the next period. I really didn’t want lunch to end. But on the other hand, at least there were only about two hours left of the day. Finally, it was the end of the day. Finding my next class was easier. I still wasn’t in time, but neither were the other kids. When my 6th period ended, it was a huge relief. I thought the day was finally over. But I still had to get on the bus again to go home; therefore it still wasn’t completely over. I went to our locker, grabbed my take-home textbooks and checked to make sure I didn’t lock the combination in there again. I forgot which way to go, so I followed around my boyfriend. When I got outside, all the buses were in line. I walked back and forth trying to find mine or at least someone who was on the same bus as me. After most of the kids already found their bus, I started to get nervous. I still couldn’t find mine. Finally I saw someone who also took my bus. He was standing there clueless too. After a couple minutes, we finally found it. Our bus wasn’t in line like all the others were, it was behind some of the all of the buses. When I go t on, I knew the day was really over. To sum it all up, my first day of high school was a challenge. It’s a new school with new people, new teachers, new subjects, and new schedules. I also missed the school orientation so I was less experienced than most of the other students. I faced many problems such as the loads of work, finding a seat at lunch and keeping it, and getting lost. It was a long day, but I can now say I survived freshman year and the rest of High School.

Analysis of Language Essay

â€Å"Keyed in† published by Internet blogger Voxi is a persuasive article regarding the technological boom being experienced by not only today’s youth but by society in general. Published on May 23, 2009 on website Ctrl Alt â€Å"Keyed in† Voxi, contends that society and its members should herald the implementation of new technology and welcome it with open arms, contrasting the internet with great historical discoveries such as Darwinism and the reorganisation of the cosmos. The title itself has a double meaning, the first and most obvious of which is the literal keyboard associated with technology and the second refers to those who are keyed in to an ever-changing society and willing to move with it as opposed to be left behind. The article begins with a non-confrontational tone however throughout Voxi begins to show a more compelling tone. Accompanying Voxi’s article is a picture of a human head withholding a microchip that projects multiple layers, th e main point of this is to make the reader think about how technology has been embedded into the core of society and implemented into every layer of the world today. Voxi’s contention is pro digital technology and is this is strategically withheld until the 5th paragraph so that readers will read on, curious of the writers contention Voxi continuously simplifies and exemplifies his arguments through metaphoric language, allowing for readers to fully comprehend his opinion whilst addressing the additional attention required. By contrasting people who embrace technology with â€Å"the grit [of] an oyster†, readers are initially made to regard individuals who accept change as stubborn, unwanted members of society. However Voxi diverts this analogy, positively presenting these â€Å"gritty people† by explaining how oysters â€Å"produce pearls†. Readers are allowed to distinguish the relationship between the beauty of pearls, with the accomplishments of those who wish to make â€Å"things better†, evoking gratitude towards these individuals who â€Å"ask questions†. Through the inclusion of television series â€Å"The Inventors†, Voxi aims his opinion piece towards those who enjoy witnessing the progression of technology into exciting ventures. By correlating the â€Å"gritt y people† with individuals who eventually enter the show, Voxi aspires to present readers with members of  society who wish to improve quality of life. As readers witness the potential benefits of change in their lives, they feel inclined to accept the alterations in all forms, including technology. Voxi introduces readers to the concept of beneficial change prior to his contention of digital technology being a great opportunity for humanity, as a way of creating susceptibility within readers towards accepting alterations in life. The writer promotes the â€Å"digital revolution† through a quick succession of psychological benefits, in that humans will â€Å"solve the riddles of the universe, find cures faster [and] find ways of preserving the planet†. By presenting a promising future, readers are encouraged to embrace such hope and reject the â€Å"boundaries of darkness†. Through using the comical term â€Å"homo supersapien†, Voxi introduces readers to a more relaxed aspect of his opinion piece, using a less eccentric tone to formulate the possibility of an advanced race of humans. The writer further explains how this superior human species will be capable of â€Å"ending war and violence†, exciting readers to the prospect of world peace. By expressing an aspect of world culture wished by all members of society, Voxi instruments his argument to appeal to reader’s humanity. However Voxi also notes to include the flaws in his argument, through the inclusion of a podcast which consist of the negative attributes associated with technology, such as â€Å"the digital world is a world†¦where nothing has meaning†. The podcast itself is efficient through repetitive language in â€Å"a world†¦Ã¢â‚¬  so as to emphasise the significance of technology on society. By demonstrating that he is unbiased towards the subject, the writer positions readers to be more accepting of his contention as they are exposed to both aspects of the debate, and so are allowed to establish an opinion on the issue themselves. By revealing both facets of the dilemma, Voxi gains readers trust as they are not mislead or withheld from information. The fear of privacy invasion is also addressed, in that Voxi offers relatively simple solutions to an initially complex problem. As a major concern in the development of technology is privacy issues, Voxi explains how â€Å"you can protest† and â€Å"get them removed† if worried. By confronting the  issue and proposing an answer reader’s trust in the writer is reinforced, as he has for the second time confronted a flaw in his argument. Voxi capitalises on this technique by proceeding to include the rhetorical question, â€Å"why wouldn’t you want it in your life?†, so as to impose a one-directional response from readers who proceed to feel pressured to comply with the writer’s contention. Voxi repeats this methodology when addressing the concerns of older readers, when he asks â€Å"What’s there to be afraid of?†. By yielding no obvious response, these individuals are inclined to consider Voxi’s answer and consequently accept it. The writer alters the form of writing to be more personal, by noting that â€Å"hot air balloons are always†¦looking into my windows too†. This is so as to subdue reader concerns for safety in light of technological advancements, by reminding them that he too is an ordinary member of society. By expressing his contempt attitude towards the risk involved with â€Å"digital revolution†, concerned readers are comforted and are less inclined to oppose the writer. Voxi later described individuals who reject technology as â€Å"losers†, implementing a direct attack on people who oppose his contention. Such action is done so as to direct readers to feel part of the majority, playing on the instinctual desire of humans to belong. The strategic placement of this assault at the conclusion of the opinion piece, infers that this last technique is aimed towards readers who are yet to comply with the writer’s argument. Through both inclusive and attacking language, the writer evokes compliance from readers, by allowing them to relate to him and feel pressured to accept the contention. By including flaws the writer gains reader support as they are not mislead and denied information, further reinforcing the argument that the â€Å"digital revolution† should be embraced, and without it you won’t be â€Å"in touch and connected†.

Buyer Behaviour

The purpose of this report is to describe the purchasing scenario of a consumer who is about to purchase a device to replace their broken or outdated laptop. The decision on what device to purchase is complex and depends on their individual needs. Consumer buying behaviour is defined by Kotler et al (2008:238) as â€Å"[t]he buying behaviour of final consumers-individuals and households who buy goods and services for personal consumption†. The world as we know it today has rapidly changed due to advancement in technology. Consumers preference are also changing due to the market changes that continue to occur . In order for a business to survive in the competitive markets today ,a company/firm has to be up to date with the latest consumer taste and trends. Consumer behaviour offers vital information and guidelines to marketers on the new upcoming technological changes that they will need to explore for example, Lap tops, PC, IPods, Phones and etc. Consumer behaviour is important in marketing, because it focuses on the customer’s views and what customer value at all times. Customers’ needs/wants are always deliberated by the company so as to provide the best service/product in return. 2. The characteristics that affect consumer behaviour Mr Dennis Nyanmichaba an accountant at NBC Bank has faults with his HP Laptop which keeps on heating up and randomly shutting down every time he places it on a hard surface, due the problems he can hardly use his laptop at home or work because it keeps shutting down, and sometimes when he is doing important work (e. g. Balance sheet, profit and loss account and etc) the computer shuts down so he sometimes loses the work and has to start all over again which is not a good thing. So he recently visited the store wanting to know if he can either repair the laptop or buy a brand new one, and if it’s the case of buying a brand new laptop, what brand is suitable?. Mr Dennis Naymichaba would want to have a laptop that not only works perfectly but also appeals in today’s business world (Social) for example a really known and sophisticated brand like Apple (Mac Book) which not only has basic things that a normal laptop has but also has the edge and advanced technology which makes it different from other laptops, Dennis would want a laptop with outstanding quality that works really fast and does not have any sort of complication what so ever, at the same time it should have a logo/brand that stands out among peers, Because nowadays you don’t see business people or firms still using old brands they all try to upgrade and stay up to date with technological advances. Another thing would be (Psychological Factors) that he would want to buy it because his co-workers are using the same type or much more advanced technology laptops, so he wouldn’t want to feel left out in the technology world and decide to also upgrade to something m ore advanced instead of the laptop he has at present. In other words Mr Dennis Nyamichaba would want to purchase the laptop not only for necessity, but also out of desire and psychological need, he would also not only want the laptop for office needs only but also personal needs for example on a weekend off work he would love to watch movies, listen to music and perhaps play games take his mind off work and entertain himself, So basically he would want something with some sort of entertainment that would help him relax, set his mind off work and do something different as mentioned above. The consumer purchase decision process diagram is very important for anyone making a decision in marketing. It alerts marketers to consider the buying process rather than just the purchase decision. The diagram indicates that customers pass through all stages in every purchase. However in more routine purchases, customers often skip or reverse some of the stages. An example would be Mr Dennis Nyamichaba buying his well-known laptop (Mac book) he would not consider anything else but buying the mac book, just because everyone else has the same kind of brand at that particular time/period and go right to the purchase decision, skipping all the other processes . However the diagram is very useful when it comes to understanding any purchase that requires some thought and deliberation. The consumer buying process start with need recognition. At this stage, the buyer recognises a problem or need (e. g. Mr Dennis needs to know if he can buy a brand new laptop or repair the old one) 3. The types of consumer buying decisions Then Mr Dennis Nyamichaba (Kotler et al (2008:266) Information search: Seeking value) will have to seek for information regarding which brand he should really go for and if that certain brand is perfect for his needs and wants and if it is not underrated in today’s business world and technology, he would also want information on how long this certain product lasts for, what period of time will that certain laptop really stay for without problems occurring (In other words it’s durability). Then (Kotler et al (2008:269) Evaluation and alternatives assessing value) he would compare between his broken laptop and advanced technology laptop that was recommended for him, what things does the old laptop have that the one with high technology does not have and check if the technology has really changed like how it’s been stated to him by the store workers. Mr Dennis (Kotler et al (2008:271)Purchase decision: Buying value) would look into the price, if it’s really e xpensive that he has to wait for prices to go down then buy it or just purchase it now that he desperately needs it. Then lastly (Kotler et al (2008:271) Post purchase behaviour: Value in consumption or use) after purchasing the laptop Mr Dennis will have to compare the performance of the laptop and see if he really likes it and if it suits his needs and wants and if he is really satisfied /dissatisfied with product, and if so, he can share his experience with other co-workers that have yet to buy the laptop. Mr Dennis Nyamichaba’s customer involvement (Variety seeking buying behaviour) into buying this product is low because he has no Idea what to get after his old laptop broke down, there will be significant difference among brands (An example would be CHOCKLET, someone would not know the taste hence after eating only he can tell whether to still go for the brand or change to another one next time he is buying the cake. The companies try so hard to change the nature of habitual buying behaviour. ) so he would not know which among the brands is by far much better for him and that he is assured that he won’t face the same problems that he faced with his old laptop. 5. CONCLUSION This report has explained on how marketers should understand consumer behaviour and how they should go about it . And also has identified the characteristics (Cultural, social, personal and psychological characteristics) that would affect the consumer behaviour when making a purchase relating to an incident or a customer replacing a broken laptop. Also it has looked into the buying decision behaviour (Variety seeking buying behaviour) that is associated with the purchase. Also the significance of consumer involvement is it high or low for the type of buying decision behaviour. It is now clearer that there is not a particular theory that is entirely faultless in the attempt to unravel the mystery of buyer behaviour as the debates have proven to be never ending. Each theory holds some degree of relevance. However, some tend to be stronger than others in terms of substantiation and certainty. The literature available reveals that there is an on-going tendency of rejecting ideas regarding the genesis of buyer behaviour. When we omit ideas and ration down the nature of buyer behaviour, danger is that we block out useful knowledge which bounds our scope of appreciation. The original premise therefore stands to be true that the nature of the buyer is indeed in need of investigation, rather that presupposition.

Set of rules to run a superlative business Essay

Set of rules to run a superlative business - Essay Example One may be the exchange of currency that is foreign exchange system, which allows the raise in amount by buying a low rate currency, and selling at time it raises its value. Bonds may also help to get spare amount as they works as lottery tickets that never go waste if not won. But paramount to earn equity in market is investing amount by buying shares of other emergent companies and selling them at the profit. There are now a day many sock reporting tools that helps the businessman to know about the stock history, and other fundamental data at the end of the day. By technical and fundamental analysis they helps to pick the stocks. Moreover, many different online sites are available for the same purpose. They help business people by showing the reports after analyzing different companies in form of equity research. The mortgage is the amount an investor earns as a profit on the property bought. That is, for instance, businesspersons bought a property in a non- establish location which in few years gets establish in a manner that property bought about 1 hundred dollars can be sold at price 100times more. Though this is the profit earned Property dealers are operating through hundreds of subsidiaries in the business market. These equity offices later converted into real estate management. Now these real estate offices have grown in size through strategic acquisitions. It is found by the equity office properties trust company profile in U.S. that Equity Office Properties own 125 office buildings in about 15 metropolitan areas as target markets. As same to Stocks, Mortgage may also measured by some different tools, may be come calculators that allow calculating the actual equity. It may also helps to propose a new investment by calculating the surplus in equity. These calculators only estimate the equity as actual equities depends on the market fluctuations on the property. Some known equity property offices does not only deal with the land but also build some extraordinary buildings and sell or rent them. They utilize property with developments not internationally but works for locals as well. These developments gives best to their customer and allow collecting funds directly and taking advantage of the marketplace widely. These developments by equity property offices ensure the ability and trust for the development. They attract the already customers for a reliable future and growth opportunities yet brings more new customers with different innovative deals. Reasons for Equity Creation Equity is the alternative for financing offered only to engineering and construction companies. This expanded the engineering and construction business with an economic escalation by equity investors giving a financial success to the companies. The Companies invest for three to seven years to earn profit via institutions, businesses and other wealth individuals. These equities are good for the business who are not ready to close their business but their business may get shut down later if no investors for owing equity are there. Following are few reasons, which clearly shows why the equity is a prominent alternative for financing. Extensive Investment Necessity of lives makes people earn more. When people don't get the enough money to fulfill their requirements they invest their money in the businesses. Equity companies invest more than

Crash and the philosophical theories Essay Example | Topics and Well Written Essays - 750 words

Crash and the philosophical theories - Essay Example Kant also makes several arguments about lying, whether it is morally acceptable to lie. He argues that lying at all times and in all possible circumstances is always morally wrong. He says that all human beings have what is referred to as an intrinsic worth called human dignity. Human beings are rational being who are capable of making their own decisions and guarding their own conduct by the use of reason. They have a rational power that enables them to be ethical in their deeds and actions. They are therefore set to make the right choice in every circumstance that presents itself before them that is in need of a decision or a choice. The fact that they are moral beings gives them the aspect of morality enabling them to make the right choice. It is for this reason that Kant argues that lying is morally wrong because it introduces corruption into the most important quality of a human being; that is the ability to make a free will. When one tells a lie, the lie contradicts the part of this person that gives him moral worth. This is what it does to the person lying. To the people who are being lied to, the lie robs them of the freedom to make a rational choice. It is for this reason that Kant argues that lying is morally wrong because it introduces corruption into the most important quality of a human being; that is the ability to make a free will. When one tells a lie, the lie contradicts the part of this person that gives him moral worth. This is what it does to the person lying. To the people who are being lied to, the lie robs them of the freedom to make a rational choice. When people make a decision because of a lie, a decision they would not have taken if they were told the truth, then the lie interferes with their human dignity and autonomy. Kant in his belief that in our endeavor to value other rational being as ends and not merely as means to an end, we are obliged in all circumstances never to damage, interfere with or to misuse in any way the ability o f a human being to make a free will decision. John Stuart Mill, a philosopher, makes several arguments concerning utilitarianism, he corrects the misconceptions that have been said concerning this subject. One of the arguments that mill disagrees with states that life has no higher end than pleasure. He says that this is a doctrine worth of only the swine. He argues that action must not be evaluated by how much pleasure we derived from it to know how much happiness can be derived from it. His argument is that a higher pleasure must be taken to be in kind, that is what brings much happiness and not how much pleasure that can be derived from it. This is to say that an action might derive much pleasure but it is not in kind and therefore it must not be used as a measure of happiness. The only action that should bring happiness is that which is done in kind and not that which brings much pleasure. Raping someone might bring much pleasure but in the measure of things that bring happiness , not raping someone might bring much happiness with less pleasure, which is a kind action. The other objection by Mill concerning the principle of utility is that it is not easy for people always to act from the inducement to promote the interests of the public. According to Mill, our actions should not always be motivated by a sense of duty but we must be motivated by ethics. Almost all our actions are always done from other motives and are always considered right if they conform to the rule of duty. Mill says that when we want to do the right thing we should never be motivated by the concern of happiness. Many of the actions we do intend the good of ourselves and not the good of the world. Yet the good that is

CJUS 310 DB7 Essay Example | Topics and Well Written Essays - 250 words

CJUS 310 DB7 - Essay Example This discussion focuses on the last phase of the juvenile court process referred to as disposition. After the verdict has been passed and the defendant found guilty, the judge orders the department of juvenile justice to prepare a predisposition report. This is aimed at recommending endorsements for the defendant (Krygier, 2009). The report usually entails the background, the family status and criminal history of the defendant. It is normally completed and served to the judge, defense attorney, the defendant and the assistant state attorney. The report also contains the recommended sentence that has been passed to the defendant for the judge to review. The report is not completed for all cases there are others that are an exception (Shoemaker, 2009). The case then proceeds to a dispositional hearing. Here, the judge sentences the defendant according to the crime committed and the circumstances that led to the case. The sentence may be imposed in two ways; either the defendant may be put under probation or may be committed to the department of juvenile justice (Krygier, 2009). Both sentences however do not go beyond the nineteenth birthday of the defendant. In cases where the defendant is put in probation, he/she is expected to complete community service work or letters of apology. This is usually not time conscious since as soon the juvenile serves as it expected of them the sentence may be terminated (Krygier, 2009). On the contrary when the juvenile is committed to the department of juvenile justice, their sentences are time associated (Shoemaker, 2009). In such instances then the court identifies the restriction that is most appropriate. Currently there are four commonly known levels of commitment. These are low risk programmes, moderate risk programmes, high risk programmes and lastly the juvenile prison (Shoemaker,

Time Management in the Workplace Research Paper

Time Management in the Workplace - Research Paper Example Time management can be applied to your personal life in order to reduce stress and improve productivity (Clinic). A lot of people waste a lot of time during their daily routine. Identifying areas to streamline your daily habits can help people gain a lot of valuable time. For instance if a person stays in the shower one hour everyday, then this individual could reduce his bathing time to save water and cut time. A different individual may spend over three hours a day talking on the phone. Increase exposure to cellular phones may cause cancer (Cancer). The person would benefit from the application of time management to reduce phone usage. The time spend away from the phone can help this person enjoy more quality time with his family. . The managers of organizations can greatly benefit from the use of time management. Since managers are responsible for the performance of their employees it is in their best interest for their subordinates to use time efficiently at work. Managers can in fluence the way people do their jobs at work. The implementation of a new process can allow a worker to produce more units during a shift. Managers can also help their workers by authorizing training and development to increase the skills and capabilities of the staff. ... Time can be better managed by executives when they are organized and perform proper planning. Managers must forecast the work labor hours required to produce the demand for its products and services. Increasing labor efficiency by reducing waste can enhance the production of a company. Time management can benefit the work output of all types of employees independent of their position. The janitor can become more efficient at his job by finding ways to reduce the time to perform tasks. Salesmen can benefit from the use of multi-tasking tools in order to reduce the time of performing different tasks in their daily routine. Barbers can increased their productivity by shortening the time it takes to finish a hair cut and by socializing less with the clients and other employees during labor hours. The use of technology can be applied in the workplace to improve the time management of the enterprise. A simple technology that can save time in administrative work is to purchase an electronic card puncher. Instead of using a time card the employees can check in by putting a pin number in the machine. The electronic data can save accountants and HR people a lot of work in determining the hours worked by the employees to prepare the payroll. Another technology that can be used to improve the productivity of businesspeople when working outside the office is smartphones. Smartphones such as the Iphone 5 have the capability of connecting to the internet which enables workers to interchange data, information, and to instantly communicate with each other saving valuable time. The proliferation of cellular technology has improved communication worldwide. There are approximately 5.9 billion cellular subscriptions worldwide (Plunkettresearchonline). Capital

Knowing My Past and Present Essay Example | Topics and Well Written Essays - 1500 words - 3

Knowing My Past and Present - Essay Example I find it easy to talk and interact with them. Close friends also provide me a sense that they know me well and understand my feelings and emotions. In addition, I find joy in sharing my feelings and emotions with them as well as knowing about their feeling and emotions. Thus, I feel secure and comfortable when I am among my close friends or relatives mainly because of the knowledge that they will not mock or criticize me even if I make any mistakes in my talk. Â  The responses of both friends confirm my view of myself. They said that I am a shy and somewhat introvert type of person. In most cases, these friends are the ones that push me to the front when I hesitate to do something like speaking before my class or address a gathering for a speech. Both of them have also substantiated my view that I am comfortable interacting with the close friends I have. They have added that I appear to be quite confident and easy going when I am in the circle of close friends or peers. Â  I always make it a point not to hurt the feelings of other people and, therefore, I regulate my moods and emotions so as to make others feel happy and comfortable in my company and to avoid any negative impact on them. I feel responsible for my actions and this sense of onus has always made me take the responsibility for my mistakes. Therefore, I take extra precaution to ensure that my words or actions, in no way, come into the conflict with the feelings of others and their emotions. Â  For example, if I am in a company of a religious minority, and someone makes a joke about them, I do not laugh at the joke. Instead, I also make an attempt to dissuade such people from making such jokes. This way, I attempt to avoid such situations without hurting the feeling of both parties.

Admission Essay To Athabasca University - Master of Arts

Admission To Athabasca University - Master of Arts - Essay Example Another reason I am applying for this integrated program is the kind of teachings the students are offered. The students in the program are taught to reason and think critically, holistically, and reflectively and to give much focus on the points of overlap and articulations between the generalized and specialized knowledge. Furthermore, I believe that exposure of the students to a wide variety of interdisciplinary methods and disciplines will prepare me to envisage and look for innovative solutions to different problems in my area of expertise. Similarly, another propelling reason for my application to this degree course is the belief that the degree will teach me to contextualize and situate practices and knowledge on a wide intellectual continuum which integrates methods, practices and theories of humanities, arts and social sciences. As an educator, this is significant for me in my profession as I will be able to apply what I have learnt in practice. Another primary reason why I chose to apply for the integrated course at Athabasca University is sufficient and adequate cost of education compared to other universities. Furthermore, the assigned texts and reading files are very informative and relevant. From the university newsletter and website, I learnt that the instructors are competent, qualified and responsive to the academic needs of the students. I believe this will be helpful for me during my studies. I have high expectations on what I want to achieve after going through the integrated program in Athabasca University. From the degree program, I want to join one of the top institutions in the country and do a profession that will provide adequate resources for my family. Furthermore, I aim to do exceptional coursework that I will be proud of always. Moreover, I have great hope and belief to innovate an idea or solution that will bring

Social Philosophy Essay Example for Free

Social Philosophy Essay Introduction As more and more cities, counties, states, and counties ban smoking in public places, place high taxes on cigarettes, and otherwise enact anti-smoking laws, clashes between the rights of one group of people and the rights of another are inevitable. If this principle were the basis for deciding public policy, which Mill advocated as one of its usages, Mill would fall somewhere in the middle on the smoking/anti-smoking spectrum. Certainly, Mill’s harm principle can be (and has been) used by both sides to support their own arguments.    In the smoking debate, the harm principle falls short in determining which of two harms is lesser, or which of two rights or interests is greater. This is why it is a useful philosophy in debate, but should not be the sole basis for legislation and public policy. John Stuart Mill’s Harm Principle In On Liberty, John Stuart Mill argued for a society organized around â€Å"one very simple principle †¦ that the sole end for which mankind are warranted, individually or collectively, in interfering with the liberty of action of any of their number, is self-protection† (15-16). This is referred to as the â€Å"harm principle,† and is considered one of the founding principles of utilitarianism (Wilson 45-48). Utilitarianism is a belief system which adopts the harm principle, arguing that each individual has the right is pursue his or her own happiness, as long as that pursuit doesn’t harm another individual also pursing their happiness or utility (Wilson 40-44). This is not quite the same as interfering or impeding an individual’s path to happiness, as Mill points out in chapter V of On Liberty; â€Å"In many cases, an individual, in pursuing a legitimate object, necessarily and therefore legitimately causes pain or loss to others, or intercepts a g ood which they had a reasonable hope of obtaining† (106-7).   In other words, Mill recognized that there was not a utopia where every individual could pursue happiness with no overlap when, for example, two individuals pursue happiness through the same, singular person. Mill’s goal was to create a principle that could serve as the basis for society, in legislation, and in social standards and customs. In the final chapter he goes into significant detail regarding the kinds of situations to which this principle could be applied, specifically â€Å"how far liberty may legitimately be invaded for the prevention of crime, or of accident† (108). Mill favors the strongest strictures on liberty in the case of children, where he argues for potential parents having to prove their financial fitness in order to have children at all, and then to provide education for all children (121-122). On issues of crime, he considers government to properly have a place as a precautionary, administrative organization than as a legislative and punitive one (Mill 128). Throughout the treatise, Mill treads the line between the liberties of individuals and the commitment each individual has to society, seeing individuals as heroes who must consistently fight against the whitewashing of democratic society, warning that â€Å"If resistance waits til life is reduced nearly to one uniform type, all deviations from that type will come to be considered impious, immoral, even monstrous and contrary to nature† (84). How the Harm Principle Relates to Anti-Smoking Laws Mill specifically discusses the â€Å"sale of poisons† and taxes on the sale of certain substances deemed to be immoral (109-113). He argues for both the sale and taxation of, for example, alcohol, as being regulation that is â€Å"not contrary to principle† (109). Therefore, we can extrapolate that he would not necessarily be averse to taxes on the sale of cigarettes, since It must be remembered that taxation for fiscal purposes is absolutely inevitable; that in most countries it is necessary that a considerable part of that taxation should be indirect; that the State, therefore, cannot help imposing penalties, which to some persons may be prohibitory, on the use of some articles of consumption. (114) This is important because it underlines Mill’s philosophy of harm as it relates to economics. He did not believe that by adding taxation which would put the price of a certain item out of reach for some individuals, that this was â€Å"harming† them in such a way as to impose on their pursuit of happiness and utility. He considered taxation to be most properly levied against â€Å"what commodities the consumer can best spare† (114). Cigarettes and tobacco are certainly considered ‘extras’ rather than necessities in contemporary society, but they have not always been considered as such. So where, at certain points and in certain cultures, cigarettes were considered something of necessity, the taxation of them would have been an encroachment from the State onto an individual’s liberty. This case problematizes the relationship between Mill’s harm principle and his theory of democratic societies being slavishly ruled by the majority opinion. We have seen an enormous shift in popular opinion regarding the use of tobacco in the United States. What may have been an affront on liberty 50 or 100 years ago (heavy taxation of cigarettes and tobacco products) may be viewed now as simply being necessary to fund our government. If societies are not static entities, and the mores of a single society may shift over even short periods of time, how can we be sure that the currently prevailing opinion is, in fact, the ‘right’ one? Mill believed that â€Å"Society has expended fully as much effort in the attempt †¦ to compel people to conform to its notions of personal, as of social excellence† (19). Indeed the taxation of cigarettes seems to amount to a sin tax, as more of a punishment than a tax of an item which is not absolutely necessary to survival. Medical science is not immune to these changing tides in public opinion. During the waning years of Prohibition in this country, teetotalers claimed that the exhalation of breath from a person drinking alcohol could effectively â€Å"poison† an innocent person standing nearby (Stewart lines 18-19). Similarly, anti-smoking proponents claim today that the exhalations of smoke from one individual can adversely affect the health of another individual. Mill saw this as an argument against censorship; â€Å"We can never be sure that the opinion we are endeavoring to stifle is a false opinion, and if we were sure, stifling it would be an evil still† (14). While we may not be able to know without doubt which opinion is the right one, Mill saw this as an opportunity for individuals to exercise their liberty through discussion and debate. In the Stanford Encyclopedia of Philosophy entry on Mill, Fred Wilson discusses the important of debate in Mill’s philosophy; â€Å"Only through free debate can such critical skills be developed and maintained: our self-development as reasonable persons, capable of critical assessments for belief and action† (45). The goal is not to produce an unerringly ‘right’ decision, but to create a society where open and honest discussion is a part of the mechanism of liberty in society, as both a check on our human fallibility and an encouragement to progress. Why the Harm Principle is Inadequate as a Basis for Public Policy The harm principle provides a philosophy of the individual and his or her relationship to society which is useful as an individual or institution level philosophy. This is especially true for those individuals or institutions without a set of religious beliefs, as the harm principle provides a system of morality to follow. However, as the basis for legislation and public policy, it is somewhat inadequate. There are, more often than not, many people with conflicting interests, and while the harm principle may form the basis of discussion, in the end an individual’s liberty may be stifled in favor of another’s. At that point, the decision has to be made as to which liberty is more important. In the case of smoking bans, an individual who derives happiness from smoking, particularly happiness from smoking in a public place, where he or she is also able to drink and socialize with friends, is taken away. At the same time, other individuals are not subjected to the possible ill health effects of secondhand smoke. The harm principle provides a useful lens through which to frame the debate, but policymakers must often make slightly messier decisions than On Liberty provides for. The very nature of public opinion as Mill saw it (which was as a tyrannical force) means that the definitions of harm will change throughout history and across geography. This leads to both sides of the smoking debate claiming Mill as a member of their side. In an interview, Mill biographer Richard Reeves, in discussing the misuse of Mill by policymakers, said that; What sometimes happens is that if you are doing something that’s actually quite paternalistic, and you don’t want to say so because you want to dress it up as a liberal policy, you might use Mill. And you stretch the harm principle well beyond reasonable usage to justify what’s fundamentally a paternalistic policy. The worst thing is to dress up a paternalistic argument in shoddy, ill-worn, liberal clothing (par. 9). Mill saw the free thought and operation of the individual as being necessary to the progress of society, and especially as a check against both the State and prevailing public opinion (19). Conclusion In this essay I have described and critically examined Mill’s harm principle and how it relates to the contemporary issue of anti-smoking laws. I have argued that the harm principle as applied to anti-smoking laws is and could be used by either side of the debate. An individual who smokes finds his or her happiness circumscribed by the happiness of those individuals who do not wish to have cigarette smoke in the public places they frequent, and vice versa. A group of individuals are going to have their liberty trespassed upon in order for other groups of individuals to retain their liberty, and rather than bringing harm to none there are only degrees of harm, which are considered more or less harmful according to the current tides of public discourse. While this creates space for a robust debate (one of the requirements of a society based on liberty), it does not provide a basis for policymakers and legislators to create public policy. Works Cited Mayes, Tessa. â€Å"Mill is a Dead White Male With Something to Say.† Spiked! Review of Books 28 March 2008. 16 April 2008 http://www.spiked-online.com/index.php?/site/reviewof  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   books_article/4923. Mill, John Stuart. On Liberty and The Subjection of Women. New York: Penguin, 2006. Stewart, C. â€Å"The Case Against Smoking Bans.† 2002. New York City C.L.A.S.H. 18 April 2008   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   http://www.nycclash.com/CaseAgainstBans/Conclusion.html#Conclusion. Wilson, Fred. â€Å"John Stuart Mill.† The Stanford Encyclopedia of Philosophy. (Fall 2007).   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Stanford University. 15 April 2008 http://plato.stanford.edu/archives/fall2007/   Ã‚  Ã‚   entries/mill/.

Stock Market Performance and Economic Activity Relationship

Stock Market Performance and Economic Activity Relationship Introduction The debate of whether stock market is associated with economic growth or the stock market can be served as the economic indicator to predict future. According to many economists stock market can be a reason for the future recession if there is a huge decrease in the stock price or vice versa. However, there are evidence of controversial issue about the ability of prediction from the stock market is not reliable if there is a situation like 1987 stock market crashed followed by the economic recession and 1997 financial crises. (Stock market and economic growth in Malaysia: causality test). The aim of the study is to find the relation between the stock market performance and the real economic activity in case of four countries The UK, The USA, Malaysia and Japan. With my limited knowledge I have tried to find out the role of financial development in stimulating economic growth. A lot of economists have different view about stock market development and the economic growth. If we focus on some related literature published on this topic one question arises: Is economic development is affected by stock market development? Even though there are lots of debate on some are saying that stock market can help the economy but the effect of stock market in the economy especially in the economy is very little. Ross Levine suggested in his paper published in 1998 that recent evidence suggested stock market can really give a boom to economic growth. (REFERENCE) It is not really possible to measure the growth by simply looking at the ups and down in the stock market indicator and by looking at the rates of growth in GDP. A lot of things can cause in the growth of stock market like changes in the banking system, foreign participation in the in the financial market may participate strongly. Apparently it seems that these developments can cause development of stock market followed by the good economic growth. But to check the accuracy one required to follow an appropriate method which would meaningfully measure whether stock price is really effecting the economic growth or not? In my work I have tried to find out the co integrating relationship between Stock price and GDP and tried to check if there is a long run and short run relationship between the stock price and GDP. The method used for the studies is Engle Granger co integration method. To do this I have used ADF (Augmented Dickey Fuller Test) to check for the stationary behaviour of the variables and then I have performed the Engle Granger Engle Granger co integration method followed by residual based error correction model. To check for the short run relationship I have used 2nd stage Engle Granger co integration method. To check the causal effect of the four countries stock market and economic growth I used Granger Causality Method. In this paper I have reviewed some studies of scholars which I have discussed on the literature review part. This paper contains five parts Part two is about the literature based on the past wok of scholars. Part Three discussed about the Data. Part four is about the methodology, Results are discussed on part five and part six is all about the summary and conclusion of the whole study. In my work I have founded there is no long run relationship between stock market and economic growth in all four countries. In addition there is no causal relation between stock index yield and the national economy growth rate. The empirical results of the thesis concludes that the possibility of seemingly abnormal relationship between the stock index and national economy of these for countries. Literature Review: Stock market contributes to economic growth in different ways either directly or indirectly. The functions of stock market are savings mobilization, Liquidity creation, and Risk diversification, keep control on disintermediation, information gaining and enhanced incentive for corporate control. The relationship between stock market and economic growth has become an issue of extensive analysis. There is always a question whether the stock market directly influence economic growth. A lot of research and results shows that there is a strong relationship between stock market and economic growth. Evidence on whether financial development causes growth help to reconcile these views. If we go back to the study of Schumpeter (1912) his studies emphasizes the positive influence on the development of a countrys financial sector on the level and the potential risk of losses caused by the adverse selection and moral hazard or transaction costs are argued by him how necessary the rate of growth argues that financial sectors provides of reallocating capital to minimize the potential losses. Empirical evidence from king and Levine (1983) show that the level of financial intermediation is good predictor of long run rates of growth, capital accumulation and productivity. Enhanced liquidity of financial market leads to financial development and investors can easily diversify their risk by creating their portfolio in different investments with higher investment. Demiurgic and Maksimovic (1996) have found positive causal effects of financial development on economic growth in line with the ‘supply leading hypothesis. According to his studies countries with better financial system has a smooth functioning stock market tend to grow much faster as they have access to much needed funds for financially constrained economic enterprises by the large efficient banks. Related research was done for the past three decades focusing on the role of financial development in stimulating economic growth they never considered about the stock market. An empirical study by Ming Men and Rui on Stock market index and economic growth in China suggest that possible reason of apparent abnormal relationship between the stock Index and national economy in china. Apparent abnormal relationship may be because of the following reason inconsistency of Chinese GDP with the structure of its stock market, role played by private sector in growth of GDP and disequilibrium of finance structure etc. The study was done using the cointegration method and Granger causality test, the overall finding of the study is Chinese finance market is not playing an important role in economic development. (Men M 2006 China paper). An article by Indrani Chakraborti based on the case of India presented in a seminar in kolkata in October, 2006 provides some information about the existence of long run stable relationship between stosk market capitalization, bank credit and growth rate of real GDP. She used the concept of the granger causality after using both the Engle-Granger and Johansen technique. In her study she found GDP is co-integrated with financial depth, Volatility in the stock market and GDP growth is co integrated with all the findings the paper explain that the in an overall sense, economic growth is the reson for financial development in India.(Chakraboty Indrani). Few writers from Malaysia found that stock market does help to predict future economy. Stock market is associated with economic growth play as a source for new private capital. Causal relationship between the stock market and economic growth which was done by using the formal test for causality by C.J. Granger and yearly Malaysia data for the period 1977-2006. The result from the study explain that future prediction is possible by stock market. A study focused on the relationship between stock market performance and real economic activity in Turkey. The study shows existence of a long run relationship between real economic activity and stock prices†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ Result from the study pointed out that economic activity increases after a shock in stock prices and then declines in Turkish market from the second quarter and a unitary (Turkish paper) An international time series analysis from 1980-1990 by By RAGHURAM G. RAJAN AND LUIGI ZINGALES shows some evidence of the relation between stock market and economic growth. This paper describes whether economic growth is facilitated by financial development. He found that financial development has strong effect on economic growth. (Rajan and Zingales, 1998) The study of Ross LEVINE AND SARA ZERVOS on finding out the long run relationship between stock market and bank suggest a positive effect both the variables has positive effect on economic growth. International integration and volatility is not properly effected by capital stock market. And private save saving rates are not at all affected by these financial indicators. (Levine and Zervos 1998) Belgium Stock market study with economic development shows the positive long run relationship between both the variables. In case of Belgium the evidences are quiet strong that Economic growth is caused by the development of the stock market. It is more focused between the period 1873 and 1935, basically this period is considered as the period of rapid industrialization in Belgium. The importance of the stock market in Belgium is more pronounced after liberalization of the stock market in 1867-1873. The time varying nature of the link between stock market development and economic growth is explained by the institutional change in the stock exchange. They also tried to find out the relationship to the universal banking system. Before 1873 the economic growth was based on the banking system and after 1873 stock market took the place. (Stock Market Development and economic growth in Belgium, Stijin Van Nieuwerburg, Ludo Cuyvers, Frans Buelens July 5, 2005) Senior economist of the World Banks Policy research department Ross Levine has discussed about Stock market in his paper Stock Markets: A Spur to economic growth on the impact of development. Less risky investments are possible in liquid equity market and it attracts the savers to acquire an asset, equity. As they can sell it quickly when they need access to their savings, and if they want to alter their portfolio. Though many long term investment is required for the profitable investment. But reluctance of the investors towards long term investment as they dont have the access to their savings easily. Permanent access to capital is raised by the companies through equity issues as they are facilitating longer term, more profitable investments and prospect of long term economic growth is enhanced as liquid market improves the allocation of capital. The empirical evidence from the study strongly suggests that greater stock markets create more liquidity or at least continue economic gro wth. (Levine. R A spur to economic Growth) Another paper was focused on the linkages between financial development and economic growth using TYDL model for the empirical exercises by Purna Chandra Padhan suggests that both stock price and economic activity are integrated of order one and Johansen-Juselias Coin-integration tests for this study found one co integrating vector exists. It is proved by the spurious relation rule in this study the existence of at least one direction of causality. He described that bi-directional causality between stock price and economic growth meaning that economic activity can be enhanced by well developed stock exchange and vice-versa. ( Title:  The nexus between stock market and economic activity: an empirical analysis for India Author(s): Purna Chandra Padhan Journal: International Journal of Social Economics Year: 2007 Volume: 34 Issue: 10  Page: 741 – 753 DOI: 10.1108/03068290710816874 Publisher: Emerald Group Publishing Limited) Chee Keong Choong (Universiti Tunku Abdul Rahman Malaysia) Zulkornain Yusop (Universiti Putra Malaysia) Siong Hook Law (Universiti Putra Malaysia) Venus Liew Khim Sen (Universiti Putra Malaysia) Date of creation: 23 Jul 2003 tried to find out the importance of the causal relationship of Financial development and economic growth. The findings of their study usin autoregressive Distributed lag (ARDL) describes about the positive long run impact on economic growth Granger causality also suggest same results. However, another study on Iran by N. Shahnoushi, A.G Daneshvar, E Shori and M. Motalebi 2008 Financial development is not considered as an effective factor to the economic growth. The study was focused on the causal relationship between the financial development and economic growth. Time series data used for the study from the period 1961-2004. Granger causality shows there is no co integrating relationship between financial development and economic growth in Iran only the economical growth leads to financial development. Establishing link between savings and investment is very much important and financial market provides that. Transient or lasting growth is the ultimate affect of the financial market. Economic growth can be influenced by financial market by improving the productivity of the capital, Investment to firms can be channelled and greater capital accumulation by increasing savings. To ensure the stability of the financial market potential regulation is important due to asymmetric information, especially at the time of financial liberalization. (Economic Development and Financial Market Tosson Nabil Deabes Moderm Academy for technology aand computer sciences; MAM November 2004 Economic Development Financial Market Working Paper No. 2 ) Data: The empirical analysis was carried out using the quarterly data for The UK, The USA, Japan and Malaysia. The data were collected from the DataStream for the period 1993I to 2008III. Economic growth is measured as the growth rate of gross domestic product (GDP) of each country with the help of stock prices SP. For the software processing I used Eviews 6.0 for the planned regression in order to get the results. The empirical analysis is done from the quarterly data from the stock market indices and the and the GDP between the first quarter of 1993 and the fourth quarter of 2008. All the data has been extracted from the data stream and expressed in US$. The data for Japan share price is from Tokyo Stock Exchange. Malaysias Share price is form Kuala Lumpur Composite Index, UKs is from UK FT all share price index and USA share price is taken from the DOW Jones industrial share price index. The nature of the Data is series used for the time series regression. List of Variables: UGDP UK GDP USP UK Share price LUGDP Log of UK GDP LUSP Log of UK Share price USGDP USA GDP USSP USA (DOW Jones) Share price LUSGDP Log of USA GDP LUSSP Log of USA Share price MGDP Malaysia GDP MSP Malaysia Share price LMGDP Log of Malaysia GDP LMSP Log of Malaysia Share price JGDP Japan GDP JSP Japan Share Price LJGDP Log of Japan GDP LJSP Log of Japan Share price Methodology: Engle and Granger (1987) first established the cointegration method. It is a method of measuring long term diversification based on data. Linear combination of two non stationary series shows that they are integrated in order one I(1) that is stationary. And this is a co integrated series. Cointegration Long term common random trend between non stationary time series. The linear combination of both the nonstationary series can be stationary if both the variables are integrated in same order. Cointegration is a very powerful approach in the long term analysis because a common stochastic trend is shared in cointegration that mean two series will not drift separately too much. They might deviate from each other but in the long run but eventually the will revert back in the long run. If there is very low correlation between the series still the series can be co-integrated as high correlation is not implied in cointegration. The reason for choosing the method as it will allow us to check the move between the variable in the long run even there might be a divergence in the short run. The first step in the analysis is check each index series whether the series for the presence of unit root which shows whether the series is non stationary. The method that I followed to do this is Augmented Dickey Fuller Test (ADF). I proceed the Granger cointegration technique 1987 when the stationary requirements are met. Cointegration long term common stochastic trend between nonstationary time series. If non-stationary series x and yare both integrated of same order and there is a linear combination of them that is stationary, they are called cointegrated series. A common stochastic trend is shared in Cointegration. It follows that these two series will not drift apart too much, meaning that even they may deviate from each other in the short-term, they will revert to the long-run equilibrium. This fact makes cointegration a very powerful approach for the long-term analyses. Meanwhile, cointegration does not imply high correlation; two series can be co integrated and yet have very low correlations. Cointegration tests allow us to determine whether financial variables of different national markets move together over the long run, while providing for the possibility of short-run divergence. The first step in the analysis is to test each index series for the presence of unit roots, which shows whether the series are nonstationary. All the series must be nonstationarity and integrated of the same order. To do this, we apply both the Augmented Dickey-Fuller (ADF) test. Once the stationarity requirements are met, we proceed Granger bivariate cointegration (1987) procedure. 30 International Research Journal of Finance and Economics Issue 24 (2009) Series Stationary Test: In this study I have used Augmented Dickey Fuller Test (ADF) to test the stationarity of variables. ADF is test for unit root where I have checked the Unit root and strong negative numbers of unit root is being rejected by the null hypothesis (level of significance). The following regression for the unit root test in Eviews: Is the white noise error tem. Is the difference operator. , () () Here with the test we can find the estimates of are equal to zero or not. Y is said to be stationary if the cumulative distribution of the ADF statistics by showing that if the calculated ratio of the coefficient is less than the critical value according to Fuller (1976). If we accept the Ho the sequence is predicted to be having unit root and if Ho is rejected then we can say that the series doesnt have unit root. This proves that the series is stationary. The co –integration test can only be performed if both the sequences are all integrated of order I (1). Cointegration Test: According to Engle and Granger (1987) to check for cointegration if both the variables and are integrated with order one the proposed method for cointegration residual-based test for cointegration (Engle-Granger method). So from the above method we can find the equation By regressing with And after that and is denoted as the estimated regression coefficient vectors. Then, = – is representing the estimated residual vector. If the residual is itegrated with zero that means the series for the residual is stationary, and and are then co integrated. An in this situation (1, -) is called co-integrating vector. Therefore is a co integrating equation, so, from it we can say that there is long run relationship between and. Granger causality test: Granger causality test is applied if the relationship is lagged between the two variables to determine the direction of relation in statistical term. It gives information about the short term relationship between the variables. In terms of conceptual definition causality is consist of different ideas, this concept produce a relation between caused and results were agreed upon. Aristo defines that there exist a link between causes and results and without causes these results are impossible. And this strong relationship. Some economists believe that the idea of causality is the mix of both theoretical and explanation and statistical concept. The frontline operational definition of causality is given by some economist, but Granger is the one who provided the information to understand it correctly and completely. Granger s operational causality definition depends of below hypotheses, Next cannot be the reason of past. 1. Next cannot be reason of past. Certain causality is possible only with past causes present time or future time. Cause is always to be come true before the result. In addition, this makes time lagged between causes and results. 2. Causality can be determined only stochastic process. It is not possible to determine the causality between two deterministic processes. After 1990s, Granger and Engle contributed to time series literature importantly. On these developments about time series analysis, some variations were done with Granger Causality test. According to this, possible long-term relationship would be tested and if 20 variables were co-integrated, long-term regression error equation s lagged value would be included in Granger Error Correction model as error correction term. Thus, Granger Causality test should be applied. If there is no co-integration between the variables, it can be continued with Granger Causality Test without including error correction terms. If there is a co-integration between the variables, Granger Causality Test will be failed and it will be certainly necessary to be included error correction term into the models. Granger Causality Test, which depends on time series data, is made by the estimation of the equations below with Least Squares Method (LSM). Xt = + j t j X + i t i Y + Ut Yt = + j t j Y + j t j X + Ut In Granger Causality test, there are three possible situations that one directional causality from x to y or y to x, opposite direction between x and y or one affect to other and independency of x and y each other. This situation changes according to chosen of null hypothesis and lagged values randomly in equations above whose parameters are whether equal to zero or not. According to researches, randomly choice makes causality incline to deviations importantly. To understand this test clearly it can be talked about below equation; t (LNGDP) = 0 + t inii (LNGDP)1+ t I nii (LND1)1+ Ut To apply Granger Causality test under null hypothesis, which illustrates coefficients of financial deepening variables (LND1) are meaningful (equal to zero) and then F-statistics can be calculated. If null hypothesis is not rejected then it is possible to say that Granger causality test accepts that financial deepening causes economic growth. The direction can be either negative or positive (Granger and Engle, 1987). Indicators of the economic growth and the financial deepening are variables, which are used for Granger Causality test. Moreover, this test can determine the effects of one variable on the other. Test result for Unit Root: Augmented Dickey Fuller Model (ADF) is used to test the stationary of each variable. Null and alternative hypothesis describes about the investigation of unit root. If the null is accepted and alternative is rejected then the variable non stationary behaviour and vice versa is stationary. Form the result of Augmented Dickey Fuller test of the four countries variables (Log GDP and Log Share price) shows that the entire variable has unit root at level which proves that the series is not stationary. However, the result from the first difference shows the significance at 1%, 5% and 10% critical value and found to be stationary behaviour. Therefore, it suggests that all the variables are integrated of order one. Variables level/1st Difference Augmented Dickey Fuller Statistic(ADF) test Japan Conclusion t statistic value With Trend t statistic value With trend and Intercept 1% 5% 10% 1% 5% 10% GDP Level -2.653258 -3.522887     -2.901779 -2.588280   -2.693600   -4.088713   -3.472558 -3.163450 1st Difference -9.053185 -3.524233   -2.902358 -2.588587 -9.003482   -4.090602   -3.473447 -3.163967 Share Price Level   -2.116137 -3.522887     -2.901779 -2.588280   -2.203273   -4.088713   -3.472558 -3.163450 1st Difference   -6.899295 -3.524233   -2.902358 -2.588587   -6.844396   -4.090602   -3.473447 -3.163967 Table 01: Unit root test for stationary Japan If we have a look on the unit root test for the variables GDP and Share price to find out the stationary behaviour the Augmented Dickey Fuller Test with intercept and with intercept and trend in level and first difference. The t statistic value with trend is -2.653258 which is higher than the critical values in 1%, 5% and 10% critical value. The same applies with intercept and trend as the t statistic value -2.693600 is higher than the critical value in all the level of critical value. So from the nature of stationary behaviour we can say in level GDP shows nonstationary behaviour. And the first difference LnGDP is integrated with order one. In case of LnSP the results with intercept and with intercept trend in level are -2.116137 and -2.203273 which is higher than the critical values shows non stationary behaviour as they are higher than the critical value. The unit root test for the variables at first difference shows stationary as the t statistic value is than the critical value i n all level and they are integrated in order one. Variables level/1st Difference Augmented Dickey Fuller Statistic(ADF) test Malaysia Conclusion t statistic value With Trend t statistic value With trend and Intercept 1% 5% 10% 1% 5% 10% GDP Level -1.195020 -3.522887     -2.901779 -2.588280 -1.933335   -4.088713   -3.472558 -3.163450 1st Difference -5.951843 -3.524233   -2.902358 -2.588587 -5.923595   -4.090602   -3.473447 -3.163967 Share Price Level   -1.900406 -3.522887     -2.901779 -2.588280   -1.891183   -4.088713   -3.472558 -3.163450 1st Difference   -7.842122 -3.524233   -2.902358 -2.588587   -7.779757   -4.090602   -3.473447 -3.163967 The unit root test result for LMGDP and LMSP values presented in natural logarithm. And the level values with intercept and with intercept and trend for LMGDP is -1.195020 and -1.93335 respectively. The values are higher than the critical value means the series has non stationary behaviour. On the other hand the 1st difference values with intercept and with intercept and trend are -5.951843 and -5.923595 respectively. The 1st difference values are integrated with order one. And in the same way I did the ADF test to check for Stationary behaviour of LMSP in level and first difference with intercept and trend. The values in level are -1.900406 and -1.891183 with intercept and trend us higher than the critical value and the series is not integrated with order one. The first difference t statistic values are -7.842122 and -7.779757 with intercept and with intercept and trend respectively are less than the critical value in both the case implies that the series is integrated with order on e. Variables level/1st Difference Augmented Dickey Fuller Statistic(ADF) test UK Conclusion t statistic value With Trend t statistic value With trend and Intercept 1% 5% 10% 1% 5% 10% GDP Level -0.690866 -3.522887     -2.901779 -2.588280 -2.377333   -4.088713   -3.472558 -3.163450 1st Difference -7.474388 -3.524233   -2.902358 -2.588587 -7.439027   -4.090602   -3.473447 -3.163967 Share Price Level -1.711599 -3.522887     -2.901779 -2.588280 -1.261546   -4.088713   -3.472558 -3.163450 1st Difference -7.254574 -3.524233   -2.902358 -2.588587 -7.391821   -4.090602   -3.473447 -3.163967 The results from Augmented Dickey Fuller test (ADF) for UK GDP in level with intercept and with intercept and trend is –0.690866 and -2.377333 respectively. Both the values in level are higher than the critical value and are integrated in order 0 shows non stationary behaviour. The t statistic values in 1st difference with intercept and with intercept and trend are -7.474388 and -7.439207 respectively. Which suggest that the critical values are less than the critical values in 1%, 5% and 10% level. So from the above hypothesis it can be said that it series is integrated with order one. When I performed the unit root test using the same method the series in level with intercept and with intercept and trend the values in are -1.711599 and -1.261546 respectively. The values are higher than the critical values implies that they are not integrated in order one shows non stationary behaviour. However, the 1st difference value of log natural share price is -7.254573 and -7.391821 wit h intercept and with intercept and trend respectively. So from the result we can say that the series is integrated in order one in both the cases with intercept and with intercept and trend. So the series in first difference is stationary. Variables level/1st Difference Augmented Dickey Fuller Statistic(ADF) test USA Conclusion t statistic value With Trend t statistic value With trend and Intercept 1% 5% 10% 1% 5% 10% GDP Level -3.244801 -3.522887     -2.901779 -2.588280   2.866507   -4.088713   -3.472558 -3.163450 1st Difference -5.010864 -3.524233   -2.902358 -2.588587 -5.010864   -4.090602   -3.473447 -3.163967 Share Price Level -2.074732 -3.522887     -2.901779 -2.588280 -0.359637   -4.088713   -3.472558 -3.163450 1st Difference -8.181234 -3.524233   -2.902358 -2.588587 -8.735399   -4.090602   -3.473447 -3.163967 Augmented Dickey Fuller Statistic in case of the variable of USA LUSSP and LUGDP I have used the same method using intercept and intercept and trend in level and first difference. Th Stock Market Performance and Economic Activity Relationship Stock Market Performance and Economic Activity Relationship Introduction The debate of whether stock market is associated with economic growth or the stock market can be served as the economic indicator to predict future. According to many economists stock market can be a reason for the future recession if there is a huge decrease in the stock price or vice versa. However, there are evidence of controversial issue about the ability of prediction from the stock market is not reliable if there is a situation like 1987 stock market crashed followed by the economic recession and 1997 financial crises. (Stock market and economic growth in Malaysia: causality test). The aim of the study is to find the relation between the stock market performance and the real economic activity in case of four countries The UK, The USA, Malaysia and Japan. With my limited knowledge I have tried to find out the role of financial development in stimulating economic growth. A lot of economists have different view about stock market development and the economic growth. If we focus on some related literature published on this topic one question arises: Is economic development is affected by stock market development? Even though there are lots of debate on some are saying that stock market can help the economy but the effect of stock market in the economy especially in the economy is very little. Ross Levine suggested in his paper published in 1998 that recent evidence suggested stock market can really give a boom to economic growth. (REFERENCE) It is not really possible to measure the growth by simply looking at the ups and down in the stock market indicator and by looking at the rates of growth in GDP. A lot of things can cause in the growth of stock market like changes in the banking system, foreign participation in the in the financial market may participate strongly. Apparently it seems that these developments can cause development of stock market followed by the good economic growth. But to check the accuracy one required to follow an appropriate method which would meaningfully measure whether stock price is really effecting the economic growth or not? In my work I have tried to find out the co integrating relationship between Stock price and GDP and tried to check if there is a long run and short run relationship between the stock price and GDP. The method used for the studies is Engle Granger co integration method. To do this I have used ADF (Augmented Dickey Fuller Test) to check for the stationary behaviour of the variables and then I have performed the Engle Granger Engle Granger co integration method followed by residual based error correction model. To check for the short run relationship I have used 2nd stage Engle Granger co integration method. To check the causal effect of the four countries stock market and economic growth I used Granger Causality Method. In this paper I have reviewed some studies of scholars which I have discussed on the literature review part. This paper contains five parts Part two is about the literature based on the past wok of scholars. Part Three discussed about the Data. Part four is about the methodology, Results are discussed on part five and part six is all about the summary and conclusion of the whole study. In my work I have founded there is no long run relationship between stock market and economic growth in all four countries. In addition there is no causal relation between stock index yield and the national economy growth rate. The empirical results of the thesis concludes that the possibility of seemingly abnormal relationship between the stock index and national economy of these for countries. Literature Review: Stock market contributes to economic growth in different ways either directly or indirectly. The functions of stock market are savings mobilization, Liquidity creation, and Risk diversification, keep control on disintermediation, information gaining and enhanced incentive for corporate control. The relationship between stock market and economic growth has become an issue of extensive analysis. There is always a question whether the stock market directly influence economic growth. A lot of research and results shows that there is a strong relationship between stock market and economic growth. Evidence on whether financial development causes growth help to reconcile these views. If we go back to the study of Schumpeter (1912) his studies emphasizes the positive influence on the development of a countrys financial sector on the level and the potential risk of losses caused by the adverse selection and moral hazard or transaction costs are argued by him how necessary the rate of growth argues that financial sectors provides of reallocating capital to minimize the potential losses. Empirical evidence from king and Levine (1983) show that the level of financial intermediation is good predictor of long run rates of growth, capital accumulation and productivity. Enhanced liquidity of financial market leads to financial development and investors can easily diversify their risk by creating their portfolio in different investments with higher investment. Demiurgic and Maksimovic (1996) have found positive causal effects of financial development on economic growth in line with the ‘supply leading hypothesis. According to his studies countries with better financial system has a smooth functioning stock market tend to grow much faster as they have access to much needed funds for financially constrained economic enterprises by the large efficient banks. Related research was done for the past three decades focusing on the role of financial development in stimulating economic growth they never considered about the stock market. An empirical study by Ming Men and Rui on Stock market index and economic growth in China suggest that possible reason of apparent abnormal relationship between the stock Index and national economy in china. Apparent abnormal relationship may be because of the following reason inconsistency of Chinese GDP with the structure of its stock market, role played by private sector in growth of GDP and disequilibrium of finance structure etc. The study was done using the cointegration method and Granger causality test, the overall finding of the study is Chinese finance market is not playing an important role in economic development. (Men M 2006 China paper). An article by Indrani Chakraborti based on the case of India presented in a seminar in kolkata in October, 2006 provides some information about the existence of long run stable relationship between stosk market capitalization, bank credit and growth rate of real GDP. She used the concept of the granger causality after using both the Engle-Granger and Johansen technique. In her study she found GDP is co-integrated with financial depth, Volatility in the stock market and GDP growth is co integrated with all the findings the paper explain that the in an overall sense, economic growth is the reson for financial development in India.(Chakraboty Indrani). Few writers from Malaysia found that stock market does help to predict future economy. Stock market is associated with economic growth play as a source for new private capital. Causal relationship between the stock market and economic growth which was done by using the formal test for causality by C.J. Granger and yearly Malaysia data for the period 1977-2006. The result from the study explain that future prediction is possible by stock market. A study focused on the relationship between stock market performance and real economic activity in Turkey. The study shows existence of a long run relationship between real economic activity and stock prices†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ Result from the study pointed out that economic activity increases after a shock in stock prices and then declines in Turkish market from the second quarter and a unitary (Turkish paper) An international time series analysis from 1980-1990 by By RAGHURAM G. RAJAN AND LUIGI ZINGALES shows some evidence of the relation between stock market and economic growth. This paper describes whether economic growth is facilitated by financial development. He found that financial development has strong effect on economic growth. (Rajan and Zingales, 1998) The study of Ross LEVINE AND SARA ZERVOS on finding out the long run relationship between stock market and bank suggest a positive effect both the variables has positive effect on economic growth. International integration and volatility is not properly effected by capital stock market. And private save saving rates are not at all affected by these financial indicators. (Levine and Zervos 1998) Belgium Stock market study with economic development shows the positive long run relationship between both the variables. In case of Belgium the evidences are quiet strong that Economic growth is caused by the development of the stock market. It is more focused between the period 1873 and 1935, basically this period is considered as the period of rapid industrialization in Belgium. The importance of the stock market in Belgium is more pronounced after liberalization of the stock market in 1867-1873. The time varying nature of the link between stock market development and economic growth is explained by the institutional change in the stock exchange. They also tried to find out the relationship to the universal banking system. Before 1873 the economic growth was based on the banking system and after 1873 stock market took the place. (Stock Market Development and economic growth in Belgium, Stijin Van Nieuwerburg, Ludo Cuyvers, Frans Buelens July 5, 2005) Senior economist of the World Banks Policy research department Ross Levine has discussed about Stock market in his paper Stock Markets: A Spur to economic growth on the impact of development. Less risky investments are possible in liquid equity market and it attracts the savers to acquire an asset, equity. As they can sell it quickly when they need access to their savings, and if they want to alter their portfolio. Though many long term investment is required for the profitable investment. But reluctance of the investors towards long term investment as they dont have the access to their savings easily. Permanent access to capital is raised by the companies through equity issues as they are facilitating longer term, more profitable investments and prospect of long term economic growth is enhanced as liquid market improves the allocation of capital. The empirical evidence from the study strongly suggests that greater stock markets create more liquidity or at least continue economic gro wth. (Levine. R A spur to economic Growth) Another paper was focused on the linkages between financial development and economic growth using TYDL model for the empirical exercises by Purna Chandra Padhan suggests that both stock price and economic activity are integrated of order one and Johansen-Juselias Coin-integration tests for this study found one co integrating vector exists. It is proved by the spurious relation rule in this study the existence of at least one direction of causality. He described that bi-directional causality between stock price and economic growth meaning that economic activity can be enhanced by well developed stock exchange and vice-versa. ( Title:  The nexus between stock market and economic activity: an empirical analysis for India Author(s): Purna Chandra Padhan Journal: International Journal of Social Economics Year: 2007 Volume: 34 Issue: 10  Page: 741 – 753 DOI: 10.1108/03068290710816874 Publisher: Emerald Group Publishing Limited) Chee Keong Choong (Universiti Tunku Abdul Rahman Malaysia) Zulkornain Yusop (Universiti Putra Malaysia) Siong Hook Law (Universiti Putra Malaysia) Venus Liew Khim Sen (Universiti Putra Malaysia) Date of creation: 23 Jul 2003 tried to find out the importance of the causal relationship of Financial development and economic growth. The findings of their study usin autoregressive Distributed lag (ARDL) describes about the positive long run impact on economic growth Granger causality also suggest same results. However, another study on Iran by N. Shahnoushi, A.G Daneshvar, E Shori and M. Motalebi 2008 Financial development is not considered as an effective factor to the economic growth. The study was focused on the causal relationship between the financial development and economic growth. Time series data used for the study from the period 1961-2004. Granger causality shows there is no co integrating relationship between financial development and economic growth in Iran only the economical growth leads to financial development. Establishing link between savings and investment is very much important and financial market provides that. Transient or lasting growth is the ultimate affect of the financial market. Economic growth can be influenced by financial market by improving the productivity of the capital, Investment to firms can be channelled and greater capital accumulation by increasing savings. To ensure the stability of the financial market potential regulation is important due to asymmetric information, especially at the time of financial liberalization. (Economic Development and Financial Market Tosson Nabil Deabes Moderm Academy for technology aand computer sciences; MAM November 2004 Economic Development Financial Market Working Paper No. 2 ) Data: The empirical analysis was carried out using the quarterly data for The UK, The USA, Japan and Malaysia. The data were collected from the DataStream for the period 1993I to 2008III. Economic growth is measured as the growth rate of gross domestic product (GDP) of each country with the help of stock prices SP. For the software processing I used Eviews 6.0 for the planned regression in order to get the results. The empirical analysis is done from the quarterly data from the stock market indices and the and the GDP between the first quarter of 1993 and the fourth quarter of 2008. All the data has been extracted from the data stream and expressed in US$. The data for Japan share price is from Tokyo Stock Exchange. Malaysias Share price is form Kuala Lumpur Composite Index, UKs is from UK FT all share price index and USA share price is taken from the DOW Jones industrial share price index. The nature of the Data is series used for the time series regression. List of Variables: UGDP UK GDP USP UK Share price LUGDP Log of UK GDP LUSP Log of UK Share price USGDP USA GDP USSP USA (DOW Jones) Share price LUSGDP Log of USA GDP LUSSP Log of USA Share price MGDP Malaysia GDP MSP Malaysia Share price LMGDP Log of Malaysia GDP LMSP Log of Malaysia Share price JGDP Japan GDP JSP Japan Share Price LJGDP Log of Japan GDP LJSP Log of Japan Share price Methodology: Engle and Granger (1987) first established the cointegration method. It is a method of measuring long term diversification based on data. Linear combination of two non stationary series shows that they are integrated in order one I(1) that is stationary. And this is a co integrated series. Cointegration Long term common random trend between non stationary time series. The linear combination of both the nonstationary series can be stationary if both the variables are integrated in same order. Cointegration is a very powerful approach in the long term analysis because a common stochastic trend is shared in cointegration that mean two series will not drift separately too much. They might deviate from each other but in the long run but eventually the will revert back in the long run. If there is very low correlation between the series still the series can be co-integrated as high correlation is not implied in cointegration. The reason for choosing the method as it will allow us to check the move between the variable in the long run even there might be a divergence in the short run. The first step in the analysis is check each index series whether the series for the presence of unit root which shows whether the series is non stationary. The method that I followed to do this is Augmented Dickey Fuller Test (ADF). I proceed the Granger cointegration technique 1987 when the stationary requirements are met. Cointegration long term common stochastic trend between nonstationary time series. If non-stationary series x and yare both integrated of same order and there is a linear combination of them that is stationary, they are called cointegrated series. A common stochastic trend is shared in Cointegration. It follows that these two series will not drift apart too much, meaning that even they may deviate from each other in the short-term, they will revert to the long-run equilibrium. This fact makes cointegration a very powerful approach for the long-term analyses. Meanwhile, cointegration does not imply high correlation; two series can be co integrated and yet have very low correlations. Cointegration tests allow us to determine whether financial variables of different national markets move together over the long run, while providing for the possibility of short-run divergence. The first step in the analysis is to test each index series for the presence of unit roots, which shows whether the series are nonstationary. All the series must be nonstationarity and integrated of the same order. To do this, we apply both the Augmented Dickey-Fuller (ADF) test. Once the stationarity requirements are met, we proceed Granger bivariate cointegration (1987) procedure. 30 International Research Journal of Finance and Economics Issue 24 (2009) Series Stationary Test: In this study I have used Augmented Dickey Fuller Test (ADF) to test the stationarity of variables. ADF is test for unit root where I have checked the Unit root and strong negative numbers of unit root is being rejected by the null hypothesis (level of significance). The following regression for the unit root test in Eviews: Is the white noise error tem. Is the difference operator. , () () Here with the test we can find the estimates of are equal to zero or not. Y is said to be stationary if the cumulative distribution of the ADF statistics by showing that if the calculated ratio of the coefficient is less than the critical value according to Fuller (1976). If we accept the Ho the sequence is predicted to be having unit root and if Ho is rejected then we can say that the series doesnt have unit root. This proves that the series is stationary. The co –integration test can only be performed if both the sequences are all integrated of order I (1). Cointegration Test: According to Engle and Granger (1987) to check for cointegration if both the variables and are integrated with order one the proposed method for cointegration residual-based test for cointegration (Engle-Granger method). So from the above method we can find the equation By regressing with And after that and is denoted as the estimated regression coefficient vectors. Then, = – is representing the estimated residual vector. If the residual is itegrated with zero that means the series for the residual is stationary, and and are then co integrated. An in this situation (1, -) is called co-integrating vector. Therefore is a co integrating equation, so, from it we can say that there is long run relationship between and. Granger causality test: Granger causality test is applied if the relationship is lagged between the two variables to determine the direction of relation in statistical term. It gives information about the short term relationship between the variables. In terms of conceptual definition causality is consist of different ideas, this concept produce a relation between caused and results were agreed upon. Aristo defines that there exist a link between causes and results and without causes these results are impossible. And this strong relationship. Some economists believe that the idea of causality is the mix of both theoretical and explanation and statistical concept. The frontline operational definition of causality is given by some economist, but Granger is the one who provided the information to understand it correctly and completely. Granger s operational causality definition depends of below hypotheses, Next cannot be the reason of past. 1. Next cannot be reason of past. Certain causality is possible only with past causes present time or future time. Cause is always to be come true before the result. In addition, this makes time lagged between causes and results. 2. Causality can be determined only stochastic process. It is not possible to determine the causality between two deterministic processes. After 1990s, Granger and Engle contributed to time series literature importantly. On these developments about time series analysis, some variations were done with Granger Causality test. According to this, possible long-term relationship would be tested and if 20 variables were co-integrated, long-term regression error equation s lagged value would be included in Granger Error Correction model as error correction term. Thus, Granger Causality test should be applied. If there is no co-integration between the variables, it can be continued with Granger Causality Test without including error correction terms. If there is a co-integration between the variables, Granger Causality Test will be failed and it will be certainly necessary to be included error correction term into the models. Granger Causality Test, which depends on time series data, is made by the estimation of the equations below with Least Squares Method (LSM). Xt = + j t j X + i t i Y + Ut Yt = + j t j Y + j t j X + Ut In Granger Causality test, there are three possible situations that one directional causality from x to y or y to x, opposite direction between x and y or one affect to other and independency of x and y each other. This situation changes according to chosen of null hypothesis and lagged values randomly in equations above whose parameters are whether equal to zero or not. According to researches, randomly choice makes causality incline to deviations importantly. To understand this test clearly it can be talked about below equation; t (LNGDP) = 0 + t inii (LNGDP)1+ t I nii (LND1)1+ Ut To apply Granger Causality test under null hypothesis, which illustrates coefficients of financial deepening variables (LND1) are meaningful (equal to zero) and then F-statistics can be calculated. If null hypothesis is not rejected then it is possible to say that Granger causality test accepts that financial deepening causes economic growth. The direction can be either negative or positive (Granger and Engle, 1987). Indicators of the economic growth and the financial deepening are variables, which are used for Granger Causality test. Moreover, this test can determine the effects of one variable on the other. Test result for Unit Root: Augmented Dickey Fuller Model (ADF) is used to test the stationary of each variable. Null and alternative hypothesis describes about the investigation of unit root. If the null is accepted and alternative is rejected then the variable non stationary behaviour and vice versa is stationary. Form the result of Augmented Dickey Fuller test of the four countries variables (Log GDP and Log Share price) shows that the entire variable has unit root at level which proves that the series is not stationary. However, the result from the first difference shows the significance at 1%, 5% and 10% critical value and found to be stationary behaviour. Therefore, it suggests that all the variables are integrated of order one. Variables level/1st Difference Augmented Dickey Fuller Statistic(ADF) test Japan Conclusion t statistic value With Trend t statistic value With trend and Intercept 1% 5% 10% 1% 5% 10% GDP Level -2.653258 -3.522887     -2.901779 -2.588280   -2.693600   -4.088713   -3.472558 -3.163450 1st Difference -9.053185 -3.524233   -2.902358 -2.588587 -9.003482   -4.090602   -3.473447 -3.163967 Share Price Level   -2.116137 -3.522887     -2.901779 -2.588280   -2.203273   -4.088713   -3.472558 -3.163450 1st Difference   -6.899295 -3.524233   -2.902358 -2.588587   -6.844396   -4.090602   -3.473447 -3.163967 Table 01: Unit root test for stationary Japan If we have a look on the unit root test for the variables GDP and Share price to find out the stationary behaviour the Augmented Dickey Fuller Test with intercept and with intercept and trend in level and first difference. The t statistic value with trend is -2.653258 which is higher than the critical values in 1%, 5% and 10% critical value. The same applies with intercept and trend as the t statistic value -2.693600 is higher than the critical value in all the level of critical value. So from the nature of stationary behaviour we can say in level GDP shows nonstationary behaviour. And the first difference LnGDP is integrated with order one. In case of LnSP the results with intercept and with intercept trend in level are -2.116137 and -2.203273 which is higher than the critical values shows non stationary behaviour as they are higher than the critical value. The unit root test for the variables at first difference shows stationary as the t statistic value is than the critical value i n all level and they are integrated in order one. Variables level/1st Difference Augmented Dickey Fuller Statistic(ADF) test Malaysia Conclusion t statistic value With Trend t statistic value With trend and Intercept 1% 5% 10% 1% 5% 10% GDP Level -1.195020 -3.522887     -2.901779 -2.588280 -1.933335   -4.088713   -3.472558 -3.163450 1st Difference -5.951843 -3.524233   -2.902358 -2.588587 -5.923595   -4.090602   -3.473447 -3.163967 Share Price Level   -1.900406 -3.522887     -2.901779 -2.588280   -1.891183   -4.088713   -3.472558 -3.163450 1st Difference   -7.842122 -3.524233   -2.902358 -2.588587   -7.779757   -4.090602   -3.473447 -3.163967 The unit root test result for LMGDP and LMSP values presented in natural logarithm. And the level values with intercept and with intercept and trend for LMGDP is -1.195020 and -1.93335 respectively. The values are higher than the critical value means the series has non stationary behaviour. On the other hand the 1st difference values with intercept and with intercept and trend are -5.951843 and -5.923595 respectively. The 1st difference values are integrated with order one. And in the same way I did the ADF test to check for Stationary behaviour of LMSP in level and first difference with intercept and trend. The values in level are -1.900406 and -1.891183 with intercept and trend us higher than the critical value and the series is not integrated with order one. The first difference t statistic values are -7.842122 and -7.779757 with intercept and with intercept and trend respectively are less than the critical value in both the case implies that the series is integrated with order on e. Variables level/1st Difference Augmented Dickey Fuller Statistic(ADF) test UK Conclusion t statistic value With Trend t statistic value With trend and Intercept 1% 5% 10% 1% 5% 10% GDP Level -0.690866 -3.522887     -2.901779 -2.588280 -2.377333   -4.088713   -3.472558 -3.163450 1st Difference -7.474388 -3.524233   -2.902358 -2.588587 -7.439027   -4.090602   -3.473447 -3.163967 Share Price Level -1.711599 -3.522887     -2.901779 -2.588280 -1.261546   -4.088713   -3.472558 -3.163450 1st Difference -7.254574 -3.524233   -2.902358 -2.588587 -7.391821   -4.090602   -3.473447 -3.163967 The results from Augmented Dickey Fuller test (ADF) for UK GDP in level with intercept and with intercept and trend is –0.690866 and -2.377333 respectively. Both the values in level are higher than the critical value and are integrated in order 0 shows non stationary behaviour. The t statistic values in 1st difference with intercept and with intercept and trend are -7.474388 and -7.439207 respectively. Which suggest that the critical values are less than the critical values in 1%, 5% and 10% level. So from the above hypothesis it can be said that it series is integrated with order one. When I performed the unit root test using the same method the series in level with intercept and with intercept and trend the values in are -1.711599 and -1.261546 respectively. The values are higher than the critical values implies that they are not integrated in order one shows non stationary behaviour. However, the 1st difference value of log natural share price is -7.254573 and -7.391821 wit h intercept and with intercept and trend respectively. So from the result we can say that the series is integrated in order one in both the cases with intercept and with intercept and trend. So the series in first difference is stationary. Variables level/1st Difference Augmented Dickey Fuller Statistic(ADF) test USA Conclusion t statistic value With Trend t statistic value With trend and Intercept 1% 5% 10% 1% 5% 10% GDP Level -3.244801 -3.522887     -2.901779 -2.588280   2.866507   -4.088713   -3.472558 -3.163450 1st Difference -5.010864 -3.524233   -2.902358 -2.588587 -5.010864   -4.090602   -3.473447 -3.163967 Share Price Level -2.074732 -3.522887     -2.901779 -2.588280 -0.359637   -4.088713   -3.472558 -3.163450 1st Difference -8.181234 -3.524233   -2.902358 -2.588587 -8.735399   -4.090602   -3.473447 -3.163967 Augmented Dickey Fuller Statistic in case of the variable of USA LUSSP and LUGDP I have used the same method using intercept and intercept and trend in level and first difference. Th