Art and Craft Essay

Art has had a great number of different functions throughout its history, making its purpose difficult to abstract or quantify to any single concept. This does not imply that the purpose of Art is â€Å"vague†, but that it has had many unique, different reasons for being created. Some of these functions of Art are provided in the following outline. The different purposes of art may be grouped according to those that are non-motivated, and those that are motivated (Levi-Strauss). Non-motivated functions of art The non-motivated purposes of art are those that are integral to being human, transcend the individual, or do not fulfill a specific external purpose. Aristotle said, â€Å"Imitation, then, is one instinct of our nature. † [16] In this sense, Art, as creativity, is something humans must do by their very nature (i. e. , no other species creates art), and is therefore beyond utility. Basic human instinct for harmony, balance, rhythm. Art at this level is not an action or an object, but an internal appreciation of balance and harmony (beauty), and therefore an aspect of being human beyond utility. â€Å"Imitation, then, is one instinct of our nature. Next, there is the instinct for ‘harmony’ and rhythm, meters being manifestly sections of rhythm. Persons, therefore, starting with this natural gift developed by degrees their special aptitudes, till their rude improvisations gave birth to Poetry. † -Aristotle [17] Experience of the mysterious. Art provides a way to experience one’s self in relation to the universe. This experience may often come unmotivated, as one appreciates art, music or poetry. â€Å"The most beautiful thing we can experience is the mysterious. It is the source of all true art and science. † -Albert Einstein [18] Expression of the imagination. Art provide a means to express the imagination in non-grammatic ways that are not tied to the formality of spoken or written language. Unlike words, which come in sequences and each of which have a definite meaning, art provides a range of forms, symbols and ideas with meanings that are maleable. â€Å"Jupiter’s eagle [as an example of art] is not, like logical (aesthetic) attributes of an object, the concept of the sublimity and majesty of creation, but rather something else – something that gives the imagination an incentive to spread its flight over a whole host of kindred representations that provoke more thought than admits of expression in a concept determined by words. They furnish an aesthetic idea, which serves the above rational idea as a substitute for logical presentation, but with the proper function, however, of animating the mind by opening out for it a prospect into a field of kindred representations stretching beyond its ken. † -Immanuel Kant[19] Universal communication. Art allows the individual to express things toward the world as a whole. [according to whom? ] Earth artists often create art in remote locations that will never be experienced by another person. The practice of placing a cairn, or pile of stones at the top of a mountain, is an example. (Note: This need not suggest a particular view of God, or religion. ) Art created in this way is a form of communication between the individual and the world as a whole. [citation needed] Ritualistic and symbolic functions. In many cultures, art is used in rituals, performances and dances as a decoration or symbol. While these often have no specific utilitarian (motivated) purpose, anthropologists know that they often serve a purpose at the level of meaning within a particular culture. This meaning is not furnished by any one individual, but is often the result of many generations of change, and of a cosmological relationship within the culture. â€Å"Most scholars who deal with rock paintings or objects recovered from prehistoric contexts that cannot be explained in utilitarian terms and are thus categorized as decorative, ritual or symbolic, are aware of the trap posed by the term ‘art’. † -Silva Tomaskova[20] Motivated functions of art Motivated purposes of art refer to intentional, conscious actions on the part of the artists or creator. These may be to bring about political change, to comment on an aspect of society, to convey a specific emotion or mood, to address personal psychology, to illustrate another discipline, to (with commercial arts) to sell a product, or simply as a form of communication. Communication. Art, at its simplest, is a form of communication. As most forms of communication have an intent or goal directed toward another individual, this is a motivated purpose. Illustrative arts, such as scientific illustration, are a form of art as communication. Maps are another example. However, the content need not be scientific. Emotions, moods and feelings are also communicated through art. â€Å"[Art is a set of] artefacts or images with symbolic meanings as a means of communication. † -Steve Mithen[21] Art as entertainment. Art may seek to bring about a particular emotion or mood, for the purpose of relaxing or entertaining the viewer. This is often the function of the art industries of Motion Pictures and Video Games. The Avante-Garde. Art for political change. One of the defining functions of early twentieth century art has been to use visual images to bring about political change. Art movements that had this goal—Dadaism, Surrealism, Russian Constructivism, and Abstract Expressionism, among others—are collectively referred to as the avante-garde arts. â€Å"By contrast, the realistic attitude, inspired by positivism, from Saint Thomas Aquinas to Anatole France, clearly seems to me to be hostile to any intellectual or moral advancement. I loathe it, for it is made up of mediocrity, hate, and dull conceit. It is this attitude which today gives birth to these ridiculous books, these insulting plays. It constantly feeds on and derives strength from the newspapers and stultifies both science and art by assiduously flattering the lowest of tastes; clarity bordering on stupidity, a dog’s life. † -Andre Breton (Surrealism)[22] Art for psychological and healing purposes. Art is also used by art therapists, psychotherapists and clinical psychologists as art therapy. The Diagnostic Drawing Series, for example, is used to determine the personality and emotional functioning of a patient. The end product is not the principal goal in this case, but rather a process of healing, through creative acts, is sought. The resultant piece of artwork may also offer insight into the troubles experienced by the subject and may suggest suitable approaches to be used in more conventional forms of psychiatric therapy. Art for social inquiry, subversion and/or anarchy. While similar to art for political change, subversive or deconstructivist art may seek to question aspects of society without any specific political goal. In this case, the function of art may be simply to criticize some aspect of society.

Birago Diop’s Vanity Essay

Birago Diop: He was born in 1906 at Dakar, Senegal. He was educated in Senegal and in France where in qualifed in veterinary surgeon. VANITY is one of his many poems he used in expressing the presence of the ancestor. THE POEM VANITY If we tell, gently, gently All that we shall one day have to tell, Who then will hear our voices without laughter, Sad complaining voices of beggars Who indeed will hear them without laughter? If we roughly of our torments Ever increasing from the start of things What eyes will watch our large mouths Shaped by the laughter of big children What eyes will watch our large mouth? What hearts will listen to our clamoring? What ear to our pitiful anger Which grows in us like a tumor In the black depth of our plaintive throats? When our Dead comes with their Dead When they have spoken to us in their clumsy voices; Just as our ears were deaf To their cries, to their wild appeals Just as our ears were deaf They have left on the earth their cries, In the air, on the water, where they have traced their signs For us blind deaf and unworthy Sons Who see nothing of what they have made In the air, on the water, where they have traced their signs And since we did not understand the dead Since we have never listen to their cries If we weep, gently, gently If we cry roughly to our torments What heart will listen to our clamoring, What ear to our sobbing hearts?

Case Study of the MAXXI National Museum

MAXXI MUSEUM ­Ã‚ ­ 001.jpg"/> Contemporary Architecture This study will concentrate on MAXXI National Museum and it will supply a comprehensive reappraisal of Contemporary museum architecture ( built in Rome in 2009 ) , designed by the Zaha Hadid Architects. As it was said in â€Å"Museums in the 21stCentury† , there is no uncertainty to state that museum architecture seeks it’s development through the periods, divided into pre- and post-Bilbao epochs. Bilbao ‘s edifices are a assortment of architectural manners, runing from Gothic to modern-day architecture like Guggenheim Museum Bilbao ( construct in Spain in 1997 ) which gives the beggary of modern-day Bilbao motion. Rome has no duty to turn itself into a voguish modern metropolis ; its glorification remainders on the accomplishments of antiquity, the Renaissance, and the Baroque. In mid1990’s a new policy in Rome for ’the publicity of modern-day architecture’ has tried to alter the architectural understatement by its metropolis authoritiess, po licy with different facets, positions and cultural activities, with willingness for freshness. The foundation of the Maxi Museum was followed by international design competition uniting all the new chances. Hadid’s proposal is an impressive urban sculpture with dynamic and indefinite exhibition infinite. To build this essay, and turn out that MAXXI museum is an illustration of Modernism assorted beginnings have been researched. Therefore, its consistence includes Architectural construct and urban scheme, infinite V object, Institutional Catalyst and Contemporary Spatiality. The essay was conducted in the signifier of a study, with informations being gathered via books â€Å"Lubetkin & A ; Tecton: An architectural study† by Yoshio Malcolm Reading & A ; Peter Coe ( 1992 ) , â€Å"Frank O. Gehry: The complete works† by Francesco Dal Co & A ; Kurt W. Foster ( 1998 ) , and the undermentioned articles â€Å"MAXXI Museum in Rome by Zaha Hadid Architects wins the RIBA Starling Prize 2010† by Levent Ozler, â€Å" Zaha Hadid ‘s MAXXI – National Museum of XXI Century Arts† by Zaha Hadid Architects, † Starling Prize 2010 Goes to Zaha Hadid’s MAXXI Museum in Rome† ( unknown writer ) . The early architectural modernism was so sudden interruption with tradition. Raise the streamer of artistic simplification and geometrization, advanced substantiate this aesthetic motto, ethical and political. The technique had become progressive character, and the machine – a metaphor.In the history of the foundation of modernism function has Berthold Lubetkin along with Le Coubusier second- coevals well-known modernist. In 1932, Lubetkin formed the Tecton partnership including Gofrey Samuel, Sir Herbert, Michael Dugdale, Valentine Harding and Anthony Chitty. Main old ages of work for Tecton partnership were the period from 1932 till the effusion of the Second universe war, and their work can be categorized in four sections: Apartments in north London, the work for Finsbury Borough Council, The menagerie work and house undertakings. One of the picturesque undertakings commissioned to construct after earned repute from the designed Regen’s park ( built in London, 1978 ) and Whipsnade zoo ( built in Whipsnade in 1931 ) was Dudley Zoo. Its location is outside Birmingham, in town called Dudley opened in May 1937.The geometric character of edifice consisted 12 animate being enclosures which despite the different maps of the edifices they formed relationship based on close connexion between them which was an early modernist illustration in England. In another manus on the official page of MAXXI museum Zaha Hadid commented that â€Å"the museum should non be seen as an object, but as a field of buildings† . Another manner to back up the touch of modernism is connected with the concrete walls in Kiosks, smallest edifices in the menagerie. Concrete is material typical for this period, and the same building techniques are used in Maxxi museum. In that manner is proven that Maxxi museum was portion of the Modern motion ( modernism ) . Another modernist for this period is half American half Canadian designer Frank Gehry. Among the well-known work of him is ( built in Spain in 1997 ) . The projected was funded and owned by Basque Country Administration, showing good entree for trade concern. The internal organisations of the infinites are distributed in three floors. The cardinal tribunal of the edifice serves as unit point, with unfastened position to the metropolis. Different art galleries fill the infinites with intent to expose impermanent exhibitions, lasting exhibitions and art from populating artist.The stuff for the exterior curving walls of the edifice is limestone and for inside is used plaster. Natural visible radiation is captured via fanlights with the aid of sunglassess control during the twenty-four hours. And as Frank Gehry says for the unconsciously made curved walls â€Å" the entropy of the curves are designed to catch the visible radiation † . With this commendation it is suggested that ap plied scientists along with the designer used scientific cognition, one of the typical features for modernism. In Maxxi museum the fluid and sinuate forms, the assortment and interweaving of infinites and the modulated usage of natural visible radiation is taking to functional model. By mensurating all these of import facet in order to hold this consequence and allow the visible radiation to come into the edifice they highlight the map. Therefore MAXXI museum it was besides used scientific cognition. Once it was said by Frank Lloyd Wright ‘s that the perceptual experience â€Å"form follows function† implies the believes that it is design service to its map. Harmonizing to arcspace.com the chief design thought of Maxi museum it is conected to the usage of the edifice exhibition infinite for ocular humanistic disciplines. Maxi museum walls traversing country and their interfaces define the interior halls of the museum and exterior.Because of the geometric abstraction in Maxxi museum â€Å"Form follows function† , we reach another feature of modernism. Modernism introduces the construct of â€Å" truth to stuffs † which states that the edifice stuffs should be exposed instead than conceal and situated in the appropriate topographic point. An illustration of this is statement is Maxxi museum. With its limited scope of stuffs, such as the walls of open concrete or grey flooring utilizing its defects, it is constructed a sequence. On 2nd floor and 3rd, the touch of daytime can be sense over the glass roof supported by steel prances. They possess a mechanism that helps for the exhibition of pictures and sculptures which are non mounted to the floor. In that why Maxxi museum is modernist edifice. Another designer of the modernism motion was Oscar Niemeyer. After his single development in architecture and a series of undertakings in the metropolis Belo Horizonte, he began to experience passion for egg-shaped forms which links with his fatherland, rivers and even woman’s organic structure form and concrete as a stuff for building. The same stuffs are used in Maxxi museum, another good ground to back up the grounds of Contemporary architecture. Exposed concrete and glass we can see in Peter Behrens edifice called AEG. Wassily Kandinsky was a Russian painter, who worked chiefly in Germany and France. Kandinsky is expressionist and proclaimed himself for Godhead of the first abstract picture, despite concerns that it dates back to consider with an earlier day of the month. His first plants were abstract water-color. His work in life base on ballss through three phases: feeling of external nature, improvisation and works composings. Wassily works and lived ab initio in Munich and subsequently in Russia, but because the conditions of Russian Communism – the censoring of totalitarian government – was forced to emigrate. First assume learning at the Bauhaus in Germany, after the closing of the school by the Nazis escaped to Paris. In 1933 by the National Kandinsky taught in Weimar, Dessau and Berlin, where he met with Russian constructivism. At that clip, the geometry acquired high quality in his art. Forms which are reminding of micro-organisms, but ever picturing interior life of the Was sily. He used an unordinary colour composings copying Slavic folklore. And mix sand with dyes to leave raggedness colourss. Consequently to theguardian.com it mentions that Maxxi museum has different assortments of colourss, such as: Grey, black, white and broad scope of pick mixtures of the open concrete. Our attending is grabbed, from the ruddy abstract elements from the ceiling, positioned in order to demo the modern-day character of the edifice through colour.Respectively of Wissily Kandinsky colour theory based on abstract elements and signifiers, we have proven our claim. Modernism is period with extremely advanced technological development.It categorizes the exposure of the construction, that’s why it could be called the period of Structural Expressionism. High-tech architecture creates new ocular thoughts, and the esteem for economical edifice buildings led to hapless fabrication quality. During the 1880ss it was hard to distinguish this technological betterment from post–modern architecture. This is exemplified in the work undertaken by Richard Rogers and Renzo Piano, Centre Pompidou. As it was reference in archdaily one of the chief design construct thoughts was the typically structural bring outing for modernism. The edifice was dived with the aid of colour coding.Using this system it could be easy recognized the different constituents or country of the edifice. For illustration electrical mechanism was colored in orange and yellow, constructions and stepss were painted in gray.In maxi museum we have exposure of stairway excessively , which led once more to the idea that Maxi museum is modernist edifice. Le Corbusier is a Gallic designer and it was born in Switzerland. He formulated his five rules of modern architecture, in which he remains faithful to the terminal of his life. The first rule is connected with columns – it separates the house from the land through several back uping columns. The 2nd rule is garden – he besides uses gardens on the roof of edifices. The 3rd rule is a little figure of supporting walls. The 4th rule is widely glazing and the last 5th rule is free facade – exterior walls free from their supporting map. And based on those five point rules he adjusted one of his undertakings: Villa Savoye which has large influence over the modernism. With unfastened program and sequence of inclines, he dares the occupants to travel through the infinites invariably. In Maxxi museum the visitant are invited to come in into a series of uninterrupted infinites, instead than the compact volume of an stray edifice. So in both instances we have a incorporate i nfinite. Decision: To sum up, the chief end of the essay was to find and explicate why Maxxi museum is modern-day edifice. Based on several perceptual experiences typical for modernism, it was proven consequently to the construct â€Å"Form follows map † , â€Å" Truth to stuffs † , unhidden constructions and scientific cognition. Maxi is a museum with legion volumes and extension of lines, without centre point, stand foring the circulation of images and thoughts. Building is seen as a 2nd tegument of the metropolis, reacting to the environment, the edifice is seen as artistic s stretching pulling over the fantastic landscape.

Salem Witch Trials Research Paper Example | Topics and Well Written Essays - 1500 words

Salem Witch Trials - Research Paper Example The outcome was sure but not short. The female convict often with her baby, were put to hellish inferno till their last breath. The following paper highlights those torments that the women had endured in the background of Salem Witch Trials. Witchcraft and black magic had always cast deep horror and doubt among human beings, belonging to different strata and countries of the world. Anything that apparently unexplainable through common sense or substantial investigation had either been termed as divine or evil. In this battle of two extremities the later often gained much weight out of the fear of the common people. Like other countries of the world United States of America (USA) was no exception regarding its attitude towards witchcraft and subsequent steps and trials that had been taken against the same. Among them Salem Witch Trial might be considered as the most significant that had paved a new angle to that atrocity. Marilynne K. Roach describes Salem witch trials as â€Å"one o f the American history’s favorite stereotypes of intolerance and superstition, a tragedy with popular associations of magical evil and Halloween jokes† (Roach, 2004, p.xv). ... 59). As time passed by, the colony admitted to the fact that the results of the trials were mistakenly interpreted and the convicted families were compensated accordingly. The shadow casting of the trials brings with it the essence of paranoia and injustice within the quintessence of the populace of the later times. Boiling down to a pinpoint inspection it can be inferred that the victims were women and they faced the evil consequences. Varied ideas are associated with the Salem witch trials like the outgrowth of conflicts among the merchant and trading class alone with the disposition of the Puritanical doctrine. Again this paper will drive its omnipotent focus on the role of the women and their perils in the society of that at the background the periphery of Salem Witch Trials. The Salem Witch trials highlighted the fact that the colonial New England was subject to subordination along with immense oppression towards women of any age and that often came behind the veil of superstiti on as a justification of those heinous offenses. Disintegrated into a prosperous town and a farming village the inhabitants of the Salem village were basically in a dilemma to seek either ecclesiastical or political independence from the town. In 1689, after winning the rights of establishing their own church, the villagers had chosen the monk Samuel Parris as their minister who was a merchant before adopting priestly hood. Parris’s perturbed exploitative mechanism of appropriation led to the generation of rigorous friction amongst the inhabitants and that eventually resulted in termination of salary contribution in October 1691. In 1685, King James II's

Admissions Application For a Graduate Program 500 words Essay

Admissions Application For a Graduate Program 500 words - Essay Example I returned to college when I was more economically stable and, at the age of 25, acquired a BA Degree. After that, I acquired a Master’s Degree in teaching social sciences. My first exposure to the functions of human resource officials took place when I was employed as a secretary, who doubled as an administrative assistant. Since then, I have also worked in different capacities as a certified teacher, and a customer service representative. At present, I work as an administrative assistant in the Planned Parenthood Federation of America’s finance department. There are many educated individuals who are opting for a certification in human resources. Business professionals, in particular, are seeking to acquire it because it allows them to be able to work in an assortment of well paying fields. Fairleigh Dickinson University is recognized as an important institution that provides indepth certification programs for qualified professionals. Acquiring a certification will help me to be able to develop additional skills which will contribute towards acquiring job stability in my chosen career. I would like to work in the human resources department of a large organization, in order to acquire the kind of extensive experience that can only be afforded by that kind of setting. Acquiring a certification in human resources will also allow me to be able to operate in assorted capacities. Many corporations, particularly in the international setting, require more professional, or expert human resource personnel than they have at present (Mathis & Jackson, 2010). This is because there are many corporations which have to navigate through the complexities that result from mergers, layoffs, the prospect of hiring exceptionally talented workers, and handling complicated insurance changes. The Certification program will inform me on the important aspects

Abortion Should not be legal Essay Example | Topics and Well Written Essays - 1000 words

Abortion Should not be legal - Essay Example Abortion is considered to be immoral crime affecting not only the mother but also the family, the community, and most significantly the fetus. To undergo an abortion is not an easy decision that makes rather complicated condition and tied up with severe consequences. The pregnant woman who might soon to become a mother should endure the process of abortion where the fetus is slaughtered within the uterus and extract from the mothers body. The decision making regarding the abortion often turns out to be a regrettable option. The parents may think abortion is the only right thing to do at the time but in a while, they may recognize that they actually needed to keep the child and it is too late. And thereon, it affects individuals, family, and the society who said ‘yes’ to the abortion process to be done. Therefore, by legalizing the act, no one is left with a choice, where anyone who says ‘yes’ to abortion must be liable for punishment. Abortion adversely affe cts the teens and youths by perverting them that there is a crooked way out of the unwanted pregnancy. The awareness should be given to the teens on the effectiveness of abstinence from unwanted sex, by which they do need not worry about the consequences of unwanted pregnancy. ... It simply means that aborting a fetus will not contribute to any role modeling skill to show off to your younger ones. Such decisions made regarding abortion can even tear families apart. It becomes tougher for a female to live in a family that forced her to undergo abortion. The consequences are too hard that even the parents of the girl who had an abortion may ask her to keep away from her younger siblings in order to avoid bad influence. Subsequently, such situations may cause more psychological traumas to the girl. The greatest impact of abortion is on the women who must suffer the most out of the process. Many of the major medical journals published recently shows that abortion contributes to increased suicide, clinical depression, and psychiatric problems in women. A renowned psychotherapist Theresa Burke, PhD, has written in her recently published book Forbidden Grief that in many ways women can be tormented for the abortion undergone for years (Beckman). She had brought forwa rd many personal accounts and events that contribute more than the sufficient evidence to reject the particular political view point that abortion not mattes. She puts in that 65-70 percent of women who undergo abortion hold a negative attitude towards the procedures (Beckman). The effects of the abortion on women start at the very beginning of the abortion process. As Barnes describes, the most conventional method of abortion is the surgical method vacuum aspiration, where the mother suffers form excess bleeding, pelvic infection, abdominal swelling, cervical tears, and in extreme cases death too. Another method used for abortion is taking mifepristone followed by misoprostol which often

Re-Educating Healthcare Providers On Hand Hygiene Practice Essay

Re-Educating Healthcare Providers On Hand Hygiene Practice - Essay Example Resistance to change may originate from the organizational level as well as the local level (Anderson & Ackerman-Anderson, 2010). In the organization, the employees may not accept change because of the implications the change process may have on them. Locally, the change process may have effects that are likely to compromise the normal life of the individuals. To effect such a change, proper education is necessary for both the parties that will be affected by the change. Poor sponsorship of change may also affect the implementation and the sustainability of change. It may originate from the organizational or national practicum. The executives are necessary for the support of the change. Lack of the involvement of the executive may lead to poor resource allocation and support towards the change program (Cameron & Green, 2012). In response to the lack of sponsorship, the change will lack support as well as resources to implement it. Communication failures may arise from the organizatio nal setup. Poor communication of a given change may lead to ineffective reception and implementation of change (Anderson & Ackerman-Anderson, 2010). In an organizational setup, poor communication with employees, the executives, and the other stakeholders may hinder change. In response to the poor communication, the stakeholders may ignore the change or develop politics towards it.If the change is not well implemented, the organization entanglements will increase. This may result in organization, politics, and frictions

The Logical Problem of Language Acquisition Essay

The Logical Problem of Language Acquisition - Essay Example (Cook, 1988) Language acquisition begins very early in the human lifespan, and begins, logically enough, with the acquisition of a language's sound patterns. The main linguistic accomplishments during the first year of life are control of the muscles that produce speech and sensitivity and the acquisition of native phonetic distinctions used in the parents' language. Interestingly, babies achieve these feats before they produce or understand words, so their learning cannot depend on correlating sound with meaning. They must be sorting the sounds directly, somehow tuning their speech analysis module to deliver the phonemes used in their language (Kuhl, et al., 1992). Shortly before their first birthday, babies begin to understand words, and around that birthday, they start to produce them (see Clark, 1993; Ingram, 1989). Despite the vast differences in language, children's first words are similar all over the planet. About half the words are for objects: food, household items, and people. There are words for actions, motions, and routines. Finally, there are routines used in social interaction, like yes, no, want, hi. Around 18 months, language changes in two ways. ... Once more, children's two-word combinations are highly similar across cultures. These sequences already reflect the language being acquired: in 95% of them, the words are properly ordered according to his/her particular grammatical rules. (Pinker, 1984; Ingram, 1989). Between the late two's and mid-three's, children's language blossoms so rapidly that it overwhelms the researchers who study it, and no one has worked out the exact sequence. Sentence length increases steadily, and because grammar is a combinatorial system, the number of syntactic types increases exponentially, doubling every month, reaching the thousands before the third birthday (Ingram, 1989, p. 235; Pinker, 1984). Though many of the young 3-year-old's sentences are ungrammatical for one reason or another, it is because there are many things that can go wrong in any single sentence. When researchers focus on a single grammatical rule and count how often a child obeys it and how often he or she ignores it, the results are very impressive: for just about every rule that has been looked at, three-year olds obey it a majority of the time (Pinker, 1984, 1989; Crain, 1992). Though our ears perk up when we hear errors, more than 90% of the time, the child is on target. Children do not seem to favor any particular kind of language (indeed, it would be puzzling how any kind of language could survive if children did not easily learn it!). They swiftly acquire free word order, SOV and VSO orders, systems of case and agreement, and whatever else their language throws at them. Even grammatical gender, which many adults learning a second language find challenging, presents no problem: children acquiring language like French, German, and Hebrew acquire

The Global Reporting Initiative Has a Mission to Develop Global Essay

The Global Reporting Initiative Has a Mission to Develop Global Sustainability Reporting Guidelines for Voluntary Use by Organis - Essay Example The specific Initiative has been proved particularly valuable leading to the increase of the power of sustainability as related to organizational reporting. At this point, the following issue has appeared: which can be the actual value of the information provided through the reporting rules used in the context of GRI. The specific issue is examined and evaluated in this paper. Emphasis is given on the value of the above information for the firms’ shareholders. Reference is made, as an example, to four firms listed in FTSE 100, aiming to show that GRI can be highly valued by a firm’s shareholders, even if there is no previous involvement of a particular organization in similar initiatives. It is made clear that firms are urged to produce the specific type of information under the pressure to respond to the demands of different parties; the adoption of GRI rules by competitors can also lead firms to participate in the specific scheme. 2. Global Reporting Initiative 2.1 Ke y points of the Initiative As noted above, the key aim of the Global Reporting Initiative is to urge organizations to use sustainability-reporting rules (Global Reporting Initiative 2012). GRI is ‘a non-profit voluntary organization’ (Global Reporting Initiative 2012) that produces such rules. These rules are voluntary, meaning that organizations are not obliged to adopt them. However, it has been proved that these rules can help organizations to improve their relationship with their shareholders who seem to value the relevant information, as incorporated in each organization’s annual reports. In order to understand the increasing pressure on companies for adopting the reporting guidelines of GRI, it would be necessary to refer to sustainability reporting, as an activity related to the operations of organizations in different industries. According to GRI, sustainability reporting is ‘the practice of measuring, disclosing, and being accountable to internal a nd external stakeholders for organizational performance towards the goal of sustainable development’ (GRI rules, p.3). The framework of sustainability reporting, as promoting by GRI, is presented below in Figure 1. It is clear that for GRI there are two key parts of sustainability reporting: the rules on which the reporting will be based and the content of the report (GRI rules, p.3). Figure 1 – Sustainability Reporting under GRI (source: GRI rules, p.3) Using the protocols and principles suggested by GRI an organization should incorporate in its annual report, three different types of disclosures, entitled as ‘standard disclosures’ (GRI rules, p.4) in Figure 1 above. These disclosures include: ‘strategy and profile, management approach and performance indicators’ (GRI rules, p.5). These disclosures could be further analysed as follows: a) the strategy and profile disclosures showing the firm’s key strategies and profile, as related to the organizational performance, b) the key managerial decisions for handling various organizational issues can be also used for understanding organizational performance; this idea is promoted through the management approach disclosures; c) the ‘economic, social and environmental performance of each organization’ (GRI rules, p.5) need to be also presented to the stakeholders; the relevant information is provided through the third type of disclosures, the performance indicators disclosures. For responding to the needs of these disclosures, organizations need to produce

Legal Framework of Business Essay Example | Topics and Well Written Essays - 1500 words

Legal Framework of Business - Essay Example rities and Futures, Commission (SFC), the Office of the Commissioner of Insurance (OCI) and the Mandatory Provident Fund as the principal regulatory authorities and the legal bodies in Hong Kong to regulate banking, securities and futures, insurance and retirement schemes industries respectively and finally the Hong Kong's Prevention of Bribery Ordinance to check corruption in business transactions. There are, however, blames hurled on the legal systems not to prove adequate to support the image of Hong Kong to be the international center of commerce the major being the laws on labor that can't protect them from being exploited. Hong Kong is Asia's main trading hub and one of the world's most open economies.. There are simple legal framework, soft taxation, almost no customs duties and no non-tariff barriers. ... (Hong Kong Business) by Christine Genzberger - 1994 Legal Framework for e-commerce: Electronic Transactions Ordinance in 2000 was promulgated to provide legal framework to e-commerce in Hong Kong.1. This ordinance was aimed to promote the legal framework and trusted environment for the conduct of electronic transactions in the country.. (PP89 90AIC Research and Public Policy Series) Internet fraud is becoming a common problem today. Legal problem comes while tackling this issue because of multiplicity of rules present in various jurisdiction and also that these rules are complex contradictory and not clear to be interpreted easily. Hong Kong has its own criminal laws pertaining to misuse of computers under section 85 of the Crime Ordinance (cap.200).2 Offence of falsification of bank computer records carries a penalty of life imprisonment. 10 year sentence may be imposed for the offence committed for false accounting by falsifying computer records under section 19 of the Theft Ordinance (cap 210).3. There are other provisions of thes e laws to cover damage to computers and unlawful interference with computers ( Urbas 2001) PP89 90 AIC Research and Public Policy Series) Voluntary recognition system: Hong Kong is the only country in Asia to have voluntary recognition system applicable on all Certification Authorities (CAs). Only those who have achieved certain objective standards are recognized. Activities of CAs and their relationship with their clients are, however, governed by common law. The director of Information Technology services has power to revoke or suspend the recognition of a CA if it fails to operate in accordance with the 'certification practice statement' or fail to

Cross-Cultural Connections Essay Example | Topics and Well Written Essays - 750 words

Cross-Cultural Connections - Essay Example The author of the paper states that due to globalization, civilization, and increased ease and speed of transportation from one corner of the globe to another, cultures have traveled to new areas rather fast (Elmer 86). It is thus imperative that people know what to expect when they encounter new cultures and how to deal with the resultant culture shock so that they may truly connect with the new cultures. One value of connecting with other cultures is that one has the opportunity to compare different cultures and lives, enabling us to examine our own lives’ views and postulations (Elmer 35). Further, meeting and interacting with other cultures allows one to look at cultural assumptions from different viewpoints. In interconnecting with other cultures such as Chinese, South American, and Japanese cultures, it is of the essence that one looks out for and avoids cultural pitfalls and exploits every opportunity that is helpful in the building of positive cross-cultural relationsh ips. For immigrants and established cultures to attain a level of cross-cultural understanding that creates comfort in society, sound social and cultural interactions are in order. In fact, these social and cultural interactions are not only essential for communal comfort but also for a widened appreciation of all cultures. Cross-cultural and social interactions also direct people’s attention to the commonalities among cultures that unite people while diminishing the differences that could divide them. As a matter of fact, cross-cultural interactions have improved the relationship among communities, more so immigrant and resident cultures that constantly compete for jobs and other resources (Smith 2). Therefore an integrated process in which new and old cultures are treated equally and benefit one another should be encouraged for the general enrichment of the recipient society.  Ã‚  Because cultures play such integral and defining roles in society’s worldview and ide ntity, it should remain the basic framework for interacting with others, be it in community centers, school, grocery shops, or parks. Notwithstanding the venues of these interactions, it is important that exact information on cultures is disseminated in frank discussions for the sole purpose of eliminating or reducing misperceptions and misunderstandings, which hamper social and cultural integration and oneness (Smith 4). There are numerous real-life illustrations and tools on how an individual may avoid or reduce cross-cultural apprehension and communicate effectively, and establish trust and acceptance across cultures. Instead of being cultural imperialists, people should be authentic ambassadors of their cultures whether just traveling or living among different cultures (Smith 5). There are several tips that have been rather useful in promoting cross-cultural interconnectivity. First, people should travel to and interact extensively with other cultures to feel and understand them . Instead of traveling with own people, one should travel and meet the local communities in the visited country and try to ask about things not understood from own cultural perspective. It has also been established that listening more and talking less could helping in addressing one’s curiosity about certain aspects of new cultures. Further, cross-cultural relations require an open mind instead of a judgmental one since what one sees may not be the truth.  

Gay Community in the Army Essay Example for Free

Gay Community in the Army Essay The story of the African American struggle after the Emancipation Declaration is quite significant in the current occurrences in the United States. One issue that has mirrored the struggle of the freed slaves has been the struggle of the gay community for acceptance in the military and to enjoy marriage rights just as the heterosexual couples. While there are similarities between these two historical happenings as both sought to have equal rights, privileges and treatment just like other citizens of the land, there are also some quite significant differences between the two. While the gay community has been struggling to have protection rights and recognition in the military, the freed slaves were happily recruited in the military but were never extended the privileges of having legal marriages (Berlin, Reidy Rowland, 1982). Policies that have been adopted by the military over the years have been quite discriminating against the gay community and those serving in its ranks. At some point, the homosexuals were entirely banned from joining the military. And although the gay rights movement has struggled to have their members join the military, the war is far from over. Just as was experienced by the freed slaves in the military who were never extended the rights to vote and legally marry, the gay community still suffers discrimination and lack recognition in the military. This is coupled with lack of laws to recognize their marriages. Outside the military, the other comparison between these two struggles has to be in the social and political spheres. While the freed slaves were concerned with lack of political and social rights which they could not enjoy, the gay community problems have been even worse. The current federal laws do not any bit recognize gay people let alone their marriages. The law therefore does not simply prohibit but perpetuate discrimination in all fronts (Nguyen, 1999). Just as was the case during the struggle by the free slaves to enjoy equal social and political rights which were prohibited by laws, the law again has been used to discriminate against sexual orientation. In conclusion, the two struggles are more similar than different and the only difference is probably the historical times of their occurrence. Common in both of them is the inherent intolerance of minorities in our culture. Laws are erected on the way to justify our convictions against people or practices we do not like. Nevertheless, just as the struggle of the African American, the gay community may triumph someday. References Berlin, I. Reidy, J. Rowland, L. S. eds (1982). Freedom: A Documentary History of Emancipation, 1861-1867, Series 2, Vol. 1, The Black Military Experience, Cambridge University Press: Cambridge. Nguyen, M. T. (1999). Civil Rights – the History of Gay Rights. Retrieved on August 9, 2010, from http://webcache. googleusercontent. com/search? q=cache:er-MHl1Bb6sJ:www. enderminh. com/minh/civilrights. aspx+struggles+of+gay+community+to+be+accepted+in+the+militarycd=4hl=enct=clnkgl=keclient=firefox-a

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