Rhetorical Essay: Shame is Worth a Try Essay

Dan M. Kahan’s â€Å"Shame is Worth a Try† was first published in the Boston Globe on August 5, 2001. In this essay, Kahan contends that the use of â€Å"shame† as a penalty of low level crimes is not only effective, but is an economical and humane alternative to imprisonment. It’s difficult to ascertain who Kahan’s intended audience is. However, because he uses examples of shame being used as an alternative sanction around the country; â€Å"Drive drunk in Florida or Texas, and you might be required to place a conspicuous â€Å"DUI† bumper sticker on your car† (Kahan 574) I would venture to say that the public at large is whom he is possibly targeting. This is further reinforced by the fact that the author chose to at least â€Å"initially† publish the article in the Boston Globe, a local Massachusetts newspaper. Kahan competently uses contrast and comparison throughout his essay to illuminate a subject that otherwise might be ignored. Nevertheless he ultimately falls short of being convincing, mainly, due to his lack of usage, of relevant facts and figures. Kahan opens his essay with the basic question â€Å"is shame an appropriate criminal punishment?† (574). He then explores examples of its use in various jurisdictions. â€Å"Refuse to make your child-support payments in Virginia, and you will find that your vehicle has been immobilized with an appropriate colored boot†¦Ã¢â‚¬  (Kahan 575). Immediately after grabbing the readers attention with examples, Kahan presents a contrasting viewpoint. â€Å"Many experts, however, are skeptical of these new shaming punishments. Some question their effectiveness as a deterrent†¦Ã¢â‚¬ (Kahan 575). This further elicits the readers curiosity, bringing them to the heart of the issue. The author eloquently asks the question, â€Å"Who is right?† (575). He then goes on to use a logos style exploration, of both sides of the issue. Kahan’s main claim is that proponents don’t get that shame, can be as effective as prison, at a lower overall cost to society. Kahan further argues and finishes strongly with the statement that the overall question shouldn’t be â€Å"isà ¢â‚¬  shame a proper punishment, but how do we employ it’s use properly? The author does an admirable job of grabbing the readers attention right from the start by giving interesting, and relevant examples of how shame has been employed around the country. ie: DUI’s in Texas, child-support in Virginia. Moreover, his use of logos styled arguments throughout the article does an excellent job of articulating his viewpoint while keeping the reader engaged. Kahan gains the readers respect by presenting well reasoned and intelligent viewpoints in such a way that it’s actually hard to find any particular fault with his assertions. The authors choice to present an opposing view right from the start, although not as effective as it could have been, was an apropos way to strengthen his stance. In moving forward, Kahan counterbalances some opponents by making it perfectly clear that his stance for shame based penalties applies to minor infractions of the law only . â€Å"There’s obviously no alternative to imprisonment for murderers, rapists, and other violent criminals†¦Ã¢â‚¬  (Kahan 575). By using examples of these shame based penalties from around the country, the author also makes it appear to the reader that he is knowledgeable in matters concerning our justice syste m. His strongest point though comes at the end of his article when he simply asks the question â€Å"Why not at least give it a try?† (Kahan 576). This seems to beg an additional question, since our current system is overloaded why not try a different approach? Kahans major downfall in this article is his insufficient use of relevant facts and figures. Although the author does reference one particular study by Harold Grasmick that shows â€Å"public disgrace exerts greater pressure to comply with the law than the threat of imprisonment and other formal punishments.† (Kahan 576). Overall it lacks the kind of â€Å"hard figures† it would take statistically to reinforce his claim. If the author had chosen to include some statistics on say, the effectiveness of alternative sanctions, or showed a cost analysis on prison sentences. He would have established a sense of trustworthiness with his reader. Unfortunately, due to the lack of those types of â€Å"hard figures† his essay lacks credibility. That lack of credibility, leaves the reader to wonder, just how knowledgeable is this author with this subject? If Kah an had just chosen to tell us a little about himself and his background, he could have very well hit a home run in the credibility department. He does after all have an exceptionally distinguished law career. Unfortunately, he fails to do so, thus leaving the reader with too many unanswered questions. The last major complaint of this essay is a complete lack of pathos style writing. Overcrowding, as well as, the shear number of offenders in our criminal justice system alone is staggering. This  hot button topic could have easily been used to stir up some emotion and passion in his argument. In this way, the author would have essentially legitimized his stance, as well as, inspired his readers to take action. For whatever reason though, the author chose to ignore this completely, and as such completely fails in winning over his audience. In the writing of this essay, Kahan addresses an important topic of our times. Our current criminal justice system is overloaded and wrought with problems, and addressing how to punish petty crimes is certainly relevant. Yet his article, despite illuminating this controversial and important subject, fails in delivering the facts needed to inspire any sort of change. Kahan does an admirable job of creating interest in a topic many might otherwise ignore. However, he ultimately falls flat in the execution and leaves the reader floundering, rather than informed. As a last note, Khans writing style might not always include the use of pathos. Unfortunately for him his lack of appeal to emotion in this particular essay will render it ultimately â€Å"forgettable†. Works Cited Kahan, Dan M. â€Å"Shame is Worth a Try† Models for Writers. Ed. Rosa Eschholz. Boston * New York: Bedford/St. Martin’s, January 2012. 574-578 Print

Instigating Racial and Cultural Separation: The Ku Klux Klan

AfricanAmericansAustin Samuelson English Comp. 1001 1030-1120 Research paper November 2, 2012 KKK â€Å"There is a race war against whites. But our people – my white brothers and sisters – will stay committed to a non-violent resolution. † This is one of the many lies and extremely contradictory statements that the head master of the Ku Klux Klan Pastor Thomas Robb tends to tell the general public. The Klan masks their ominous plans and devious hate crime behind a ploy that they are trying to protect the heritage and culture of the white race. They are driving force behind racial and cultural separation.They lie and plot and plant seeds in those who listen closely and are naive enough to listen, they scare and strike fear into the hearts of many while accommodating to the flaws that society tends to look over. They harness their dominance over communities by exploiting lack of segregation and making all those that live there feel as though it is okay to be strict ly one race. By doing this they have now planted their seed that anything outside of white is foreign and should not be tolerated. The Ku Klux Klan are the villains in every story, they are the evil in which kids are told about, the bullies you come across in life in America.The Blatant lack of respect for anything other than the Christian culture shows truly how much the United States has failed to change since civil war times, and how far the maturation of United States citizens has truly come? This group is the true poster child for moral corruption amongst the world and all its inhabitants. The Ku Klux Klan has had a major influence on the actions in many people’s lives. In some opinions they are good, they felt as though what they were being taught was the true way of life. In others they are extremely terrible causing them extreme emotional and in many cases physical harm.Either way the Klan has had a very significant touch on all those around them. With every action th ey performed and carried out for their own benefits really began to show everyone in the surrounding area, and in many cases, parts of the country just what the Klan really was, and what they were trying to do. The influences that the Klan has put forth have been different in the lives of many; a major example of this is William Joseph Simmons who single handedly brought forth a second coming of the Klan in 1915 after a fifty year hiatus.He turned the Klan from closet villains who committed small hate crimes against neighboring towns with Negros, to a new breed of Klan, a fraternal organization who banned together with their common beliefs in being anti-Catholic, anti-negro, anti-Semitism, and all those who were foreign born and had no ancestral ties to the United States. He created a system so complex that infiltration would be impossible, or in the case that a high ranking leader was captured there was always a next in line. In his childhood he was told stories about how the Klan was ran and what they used to try and accomplish.Simmons dreams were much larger and his organization was a lot more put together and thought out. He based his reincarnated version of the Klan on the legislative system by creating a court system and met annually. As the Klan began to progress, another man by the name of Edward Clark came into power because Simmons could not keep a large group. As Clarks reign over the Klan maturated so did its numbers jumping from 2,000 to 100,000. Just weeks later it membership grew to nearly 2. 2 million people through advertisements.They used their group to influence those in power to join the Klan in attempts to secure the nation’s top political positions. Although Klan membership has decreased drastically throughout the recent years, there are still hate demonstrations performed by the Klan. There are very rarely cases quite as drastic as there were during the KKK’s prime, yet Klan activity remains, and still strikes fear into the hearts of many minorities. Today’s Klansmen use one of the most symbolic and oldest forms of intimidation used by the Ku Klux Klan; cross burnings.Julian Borger, a news writer for The Guardian wrote a piece in 2002 entitled â€Å"Supreme Court to decide on Klan's burning cross: Is it freedom of speech or incitement to violence? † In this article, Borger cites recent incidents that have occurred involving cross burning. Cross burning is illegal in Virginia, along with many other states; but it remains legal in others. In 1998 three teenage men constructed a cross out of materials found at home and erected it outside of an African American families home. They continued to set the cross on fire, and let it burn.Cross burnings are not only immoral, but they strike fear into the home owner, and possibly people that cross by and witness the burning. Virginia’s attorney general, Jerry Kilgore states that â€Å"even a white man would feel threatened if he woke up and found a burning cross in his garden. † The Ku Klux Klan, which was created in the winter of 1865-1866, is the most iconic terrorist organization in this country’s history. However, according to the founders of the Klan, there was originally no malicious intent, but it quickly expanded, and adopted a new leader, and the Ku Klux Klan became what we remember it as today.Nathan Forrest was the main influence in turning the KKK into a hate group that terrorized African Americans. Forrest is a famed cavalry commander from the civil war. He and his soldiers tortured and murdered captured African American troops. This would be a sign of things to come for the Ku Klux Klan after he took over. The Klan soon spread like a vicious cancer throughout the south, and included political figures, mayors, and criminals, along with your everyday business man. The Ku Klux Klan showed no mercy towards any African Americans.They beat, whipped and murdered thousands, while at the same time inf licting great fear into tens, if not hundreds of thousands. In some of the more appalling and outright inhumane cases, Klansmen whipped a 103 year old woman, and would beat paralyzed Negroes. The only thing they cared about was the color of your skin, and whether or not your ideologies were the same as theirs. Just because someone was Caucasian did not mean anything. If a white man were to defend, be-friend, or stand up for a Negro, they were looked upon as a Negro by the Klansmen. One Negro wrote â€Å"We have very dark days here. The colored people are in despair†¦.God knows it is worse than slavery. † In conclusion, as we let this internal terrorist flood the hearts of white America and strike fear into all else that inhabit it we are not only hurting ourselves but showing the world we do not care for our people . The Ku Klux Klan has personally demoralized everything that the United States has fought to have. This group is the statue of disrespect, the monument of tr eason toward America. The Ku Klux Klan throughout the years has demonstrated a complete lack of respect towards minorities, and has absolutely not displayed a commitment to social responsibility.

Henrik Ibsen’s A Doll’s House Essay

The role, treatment, disadvantages, and sacrifices of women in their societies are vital themes in both Federico L’Orca’s The House Of Bernarda Alba and Henrik Ibsen’s A Doll’s House. In Federico L’Orca’s The House Of Bernarda Alba, to start with, all characters that appear on stage are females, and men are merely talked about. In Ibsen’s A Doll’s House the protagonist is Nora, a woman who gets treated by her husband as though she were a little girl. At the time when Federico L’Orca and Henrik Ibsen wrote their plays, it was normal for women to get treated as anything but equal to men. Women were expected by men and by their society to do nothing more than stay at home, cook for their family, get children, and then take care of their children as well. Although Ibsen and L’Orca wrote these plays several decades apart, since Ibsen wrote his play at the turn of the century in Norway and L’Orca wrote his in 1930’s Spain, the expectations of women were pretty much the same. It was not normal for women to receive an education, let alone a good one, and women were not allowed to vote. In A Doll’s House there are three female characters: Nora, Mrs. Linde, and the maid working for Nora. All of these women have to sacrifice something and have disadvantages, simply because they are women. Every character in The House Of Bernarda Alba has to suffer because they are women. Spanish tradition in the 1930’s forces them all to isolate themselves from the outer world for eight years of their lives. In The House Of Bernarda Alba, Bernarda Alba and all of her daughters have to mourn the death of their father. This is Spanish tradition, and so they all have to live in their house for eight years, completely isolated from the rest of society. They may only wear black, even in the scorching heat of southern Spain. This already shows how harshly women were treated. Bernarda Alba and her daughters are forced to isolate themselves from the outside world completely, whether they want to or not, because of tradition. The eight women are forced to give up eight years of their lives in which they may do nothing but mourn. Also, the fact that a woman has to kill her own child when she gets pregnant, and is then hunted down by the whole town and killed herself, shows how women were viewed and treated. Also, a woman could often not decide who she wanted to marry, and when a women got married it was often just nothing more than a business deal, and the feelings of the woman were completely ignored.

Excercise 3.1 Assignment Example | Topics and Well Written Essays - 250 words

Excercise 3.1 - Assignment Example The red color also implies stop and danger therefore stamping the perfumes title of the heat. Perfumes glass placed at the bottom right is bristle and clear. It also has a firm base showing stability and irresistibility of women who use the perfume (Beyonce Heat 1). Viktor & Rolf spicebomb is an attractive ad design. The image of a handsome young man holding the bottle implies the fragrance cozy, warm and composed nature. The masculine male shows that the product is designed for the gentle and handsome males in the society. Spicebomb’s bottle has a grenade shape thus qualifying the products name of ‘bomb’. In addition, spicebombs grenade and explosive nature implies the perfumes strength. Specifically, it signifies silage and the everlasting power of the fragrance thus sets it apart. The backgrounds grey shading creates a sense of calmness and confidence that the product creates. Black and white texts used in the ad improves the viewers or audiences public image. It also shows classism and perfumes distinct mainstream image. The title provides a seamless balance between intensity, elegance and subtlety (Rolf

Confucius- Human nature Essay Example | Topics and Well Written Essays - 1000 words

Confucius- Human nature - Essay Example According to Confucius, it was solely the responsibility of people to change the world they live. Human nature was an essential component in the achievement of better lives. According to Confucius, human nature is the foundation of human action. This means that the way a person behaves is entirely based on their human nature. All human beings are similar in nature, but it is their personal practices that set them apart. Therefore, human nature is subject to change depending on one’s environment. Confucius is of the opinion that men are good by nature, but outward influences lead to the decay of the good nature of man. Therefore, people need to be enlightened through education to prevent them from being corrupted by negative external influences. Therefore, in order to preserve the good nature of people, education would have to be conducted using persuasion and practice. According to Rainey rightness and knowledge is a great virtue of human nature taught by Confucius (31). Confu cius believes that in order for a person to do what is right, they ought to possess the knowledge of distinguishing right from wrong. This knowledge may be inborn or it may be learned through hard work. Confucius himself claims that he was not born knowledgeable; rather, he took interest in a lot of things involving antiques and studied them carefully. This constant studying is what made Confucius knowledgeable. Another principle of human behavior according to Confucius is courage. Courage for Confucius does not only end at being brave and engaging in risky activities. Rainey (32) states that Confucius looks at courage as the ability to do what is right, regardless of the consequences. Courage in itself without moral uprightness, according to Confucius is neither good to a man nor to his fellow men. Confucius believes that a person who is courageous but lacks moral behavior continues in their wickedness. An example is a ruler who, although courageous does not know what is right, thu s brings political problems to the people. Similarly, Confucius states that a low-class man is bound to become a criminal if they have courage but have no idea about what is right. These two examples justify Confucius’ claims about human nature and the opinion that courage is an ingredient for moral behavior. Another of Confucius’ principles is that all men desire to be rich and to be honored and they hate being poor. However, if such wealth is not attained using lawful methods, it should not be kept. Confucius also argues that if one is forced by circumstances to be low in status and poor, they should try to avoid their status. It is as human to be poor as it is to be rich. To Confucius, not have an important position in the society is less important. What matters is whether one gets that position lawfully or not. Therefore, any person who tries to run away from poverty is in essence running away from human nature. In ancient china, monarchy was the accepted form of r ule that few dared to challenge. To this end, philosophers were very concerned about the kind of ruler who was ideal to rule china and went on to describe the desirable characteristics of a monarch. Confucius believed that a ruler should be sincere, just, morally upright, and have good social relationships. These aspects of an individual are what

North Korea's threat to Peace and Stability Research Paper

North Korea's threat to Peace and Stability - Research Paper Example In the 1950, North Korea allied to the communist states and precisely, the U.S.S.R, then under the command of Joseph Stalin. Similarly, the republic of South Korea allied to the United States of America for protection and economic propulsion. The end of the Second World War marked the beginning of rivalry among communist and capitalist. Each group had different ideologies to development, leadership, and relations (Segell, 2005). The communist held tight fists on dictatorial regimes hoping, thus diminishing democracy to the lowest point, and undermining economic progression since most properties belonged to government, and there was no privatization whatsoever. North Korea desired to acquire the Southern country, and under the support of communist, the country invaded the South but foreign troops held it back (Kim, 2011). Thereafter, the country endeavored in militarizing the troops through the provision of mass destruction weapons, hoping to stand better chances against enemies. The following is an outline of the course to militarization, competing for supremacy, and threats to world peace in the country of North Korea. The course to militarization The family of Kim IL Sung has continuously indulged in armament of its troops through nuclear enrichments and provision of superior weapons. Further, the number of active arms total to more than a million out of a twenty two million-population count. This tally of officers represents 4.51% of the population, bearing in mind that almost all the citizens undergo military training. Therefore, North Korea is the first country in the world to militarize in relation to the population. At this point, advocacy for the acts of armament and nuclear development in the country remain a secret in the country’s heart of monarchical and dictatorial family of the Kim’s (Segell, 2005). Years after the Second World War, North Korea embarked on aggressions against neighbors, China, and South Korea. The country stands read y for any possible threats and challenges neighbors to war acrimonies by stressing on the urge to try military activities over their territories. The successions of Kim IL Sung and family lineage, over the leadership of North Korea to the current leader, Kim Jong-un tend to worsen the situation (Pak, 2000). Instead of defecting from their predecessors’ indulgence to nuclear armament, they enhance the projects. Militarization The state of North Korea produced weapons even at a time when famine befell the country for at least three years. During that famine period, estimations reveal that 800,000 to 1,300,000 citizens died of hunger whilst the country targeted military supremacy over the lives of the people. This occurred between 1994, and 1998 and the country’s leadership declined involvement of any humanitarian organization to the calamity, mentioning the strengths it had to tame the calamity. The country preferred military stability to economic, thus during the famine , the authorities did little to save the people, but ran expensive and intense nuclear programs at the time. The leader argued that, nuclear and weaponry stability was for the best interest of the entire nation. Initially, the United States of America assisted North Korea in eradication of a binding statute that deterred any nuclear operations in Korea. The US took the opportunity to acquaint southern and home country troops with nuclear weapons, while other nations declared the act as perpetrating

Theories and thesis Essay Example | Topics and Well Written Essays - 1000 words

Theories and thesis - Essay Example All these different criminal patterns develop their own financial, social and political bases of strength and power (Varese, 2010). The problems presented by organized crimes The problems of examining organized crime start when the analysis of the threats, risks, sizes and impacts prevails. Also, determining the illegal markets and money laundering by the organized gang is difficult to estimate (Varese, 2010). These problems are difficult to handle because they involve measuring exceeding many different things and too many political issues engage in organized crime and gangs. There is also a remarkably thin line between the legitimate and illegitimate markets; thus, the size of one market overlaps partially with the other. The organized crimes are also grouping and fragmenting themselves; they are like a mutating gene and any estimate will not bring about the necessary results (Mallory, 2011). Organized criminal activities are also difficult to prosecute. This is because some of the crimes are expensive to investigate and involve even nations. Some crimes are also not prohibited in some nations that might be neighboring. These crimes can spill over if there is loose border protection. As a result of appreciation in the community where they operate, most of the organized crimes receive protection from the law enforcers (Varese, 2010). Most countries also have not developed strategic management and prosecution laws to stop the emergence, development and growth of organized crime. The Relationships between Organized Crimes Illegal crime groups usually join hands to ensure that they thrive. These relationships formed with each other can be dissolved any time, and new affiliations crafted. Each group can even break down to smaller operating units, totally independent from the previous ones. The organized gangs like Black Disciples adjust their operations to allow another gang smuggling guns to use their system. This arrangement allows the gun smugglers to sell the g uns at a discounted price to Black Disciples (Mallory, 2011). The mafia also provides sharp- shooters, hit men, and enforcers to other branches or other groups at a price. This covers-up the crime and makes it difficult to be traced to the offender. Organized crime also ensures enormous benefit to the community involved. They organize parties or charity work to show that they benefit and give back to the society in exchange for the crimes they commit. The Black Disciples used to keep black money to the black people in the black market (Varese, 2010). The leadership of the organized crime also ensured that the group activities involve politicians in the city involved. This is to keep the organized crime in a position where they can do their work. The organized criminal gangs provide money, and the willing officers agree to protect them by either allowing their operation or destroying the evidence. Legal Limitations associated with combating organized crimes Most governments have trie d to combat organized crime by enacting laws that prevent, prohibit and discourage organized crimes. Prosecution of organized crime has also posed a problem to law enforces. An example is the inability of the Federal Government to sentence Al Capone for selling alcohol during prohibition and instead jailing him for averting income tax (Albanese, 2010). The Federal Governm

Evaluating the Shareholders Wealth Consequences in Defeating Hostile Essay

Evaluating the Shareholders Wealth Consequences in Defeating Hostile Takeovers of UK Companies - Essay Example Changes in the structure and organisation of a company's operations may be reflected in performance data, but these data provide little indication of the nature and extent of the structural changes. Changes in the functions performed within the company, the product mix, the availability of finance, input sources, industrial relations and many more qualitative aspects of the company's operations may also have significance for the long-run development of the acquired company which would not be reflected in relatively short-run performance data (Ashcroft & Love, 1993, p. 39). An example of a company's effort to substantiate changes through a hostile takeover is that of Olivetti. This Italian industrial giant was long known as a typewriter and office machine company, which almost failed in the 1980s. With the entry of several US competitors in the late 1980s, Olivetti found itself in hot water as it is being toppled down by IBM, Dell, Toshiba, and Compaq. The solution was not obvious, though one business that Olivetti entered in the 1980s, telecommunications, has turned out to be the one in which the company is trying to bet its future. With the bold bid for Telecom Italia in 1998, Olivetti launched one of the first major hostile takeover bids in Europe. After successfully overcoming the strong opposition of Telecom Italia's board and an attempt to recruit Deutsche Telekom as a white knight, Olivetti did take control of the telecommunications company. Now it remains to be seen if Olivetti really can remake itself as a leading telecommunications company mo ving into the twenty-first century (Raghavan and Naik, 1999). In occasions of hostile takeovers, the final decision of whether to allow it rests with the stockholders. In an earlier time, they were largely individuals whose purpose in investing was to earn dividends and hope the stock would appreciate in value so they could sell it at a gain for their retirement. Such "little investors" in our era have been replaced by giant investment funds managed by shrewd professionals with sophisticated computer programs to guide their decisions. They work for mutual funds, pension funds, and other large-volume investors with billions of dollars that they must "keep working" for the benefit of their shareholders or members (Loughran & Vigh, 1997). As there are already strong takeover defences presently available to corporations, shareholders do not have claim to decide whether or not proposed takeover offers are in the best interests of the company. Unfortunately, managerial decision-making may become conflicted for any number of reasons when the company becomes a target for takeover. The burden of proof to show there's no conflict of interest is clearly on the shoulders of the management of the target company. Fact is that any expenditure to "defend" the company from a hostile takeover need to be ultimately justified by enhanced shareholder value. Apparently, during takeovers, the management represents the company, regardless of whether or not it would be more beneficial if shareholders accepted a takeover offer and reinvested the offer value (Neis, 1997). It could also happen that management could overestimate its own ability to create value for shareholders and mistakenly turn down superior offers. Another dilemma that dese rves more careful review is that management owning a substantial number of

OUTLINE ASSIGNMENT Research Paper Example | Topics and Well Written Essays - 500 words

OUTLINE ASSIGNMENT - Research Paper Example Myrrh possesses effective antimicrobial activity, which is why it has been used in the treatment of many diseases. The other substance used in natural wound healing is the propolis, which is collected by bees Apis mellifera from trees. It has antimicrobial, antiulcer, anti-oxidative and antitumor. Traditional wound care has shown excellent results since they support the scientific that a most environment helps the healing process. II. Natural wound care methods entail the stimulating of the body to produce hormones and cells to help in the healing process. Hyperbaric oxygen therapy is an example of a natural wound care method. It involves the inhalation of pure oxygen at three times the normal pressure. Blood carries the pure oxygen all over the body. It helps in fighting bacteria and stimulating angiogenesis. It promotes the release of stem cells and growth factors. Matrix therapy with OTR4120 also helps stimulates growth factors to speed up the process of healing. The OTR4120 helps in restoring the natural cell microenvironment, which aids in preventing an impaired wound healing process (Tong, et al., 2012). It helps the healing process by support an intrinsic regeneration of tissues. It corrects the factors that disturb the wound healing process. III. The healing of wounds in diabetes is done using many methods. The process can use traditional wound care practices that use honey, propolis, myrrh and other products with medicinal properties. Honey and propolis helps in speeding up the healing process for diabetes patients (Loft, Badra, W., & Alenzi, 2015). However, additional clinical evidence is required to determine the effectiveness of honey in clinical settings. In the use of honey, the MPH paste was applied to aid in the treatment of deep wounds. The natural methods of the healing of diabetes wounds are hyperbaric oxygen therapy and matrix therapy with OTR4120. According to research, both methods

Compare and Contrast Paper Essay Example | Topics and Well Written Essays - 1000 words - 1

Compare and Contrast Paper - Essay Example Thus, as the name implies, current asserts can be consumed during the current period or they can be converted into cash within a short period of time. A good example of a current asset is a bar of soap in the shop or a bottle of cooking oil. These can be used within the current period or they can be converted into cash when they are bought by a buyer. 2. Any assets whose use is restricted for purposes other than the current operations must be excluded from current assets (Glautior & Underdown, 2001). Assets are classified as noncurrent assets if they are not expected to be converted into cash or consumed during one year of their operating cycle. The operating life cycle of the noncurrent assets is usually very long and it can exceed a period of ten years. In some instances, the noncurrent assets are intangible and they include investments and special purpose funds. These funds cannot be withdrawn or used within a short period but can only be used after proper plans have been put into place. Long term investments are regarded as noncurrent assets as this money will be meant for long term plans and may not be immediately withdrawn even in case of emergence. Noncurrent assets also include property, plant and equipment used in the firm. This equipment cannot be readily disposed given that it is in everyday use to manufacture goods and products that can be sold to generate cash. This equipment can only be disposed if it has past its expected life span but not for quick cash like current assets. 3. The main difference between current assets and noncurrent assets is that current assets can be in form of cash or other assets which can be easily converted into cash. On the other hand, noncurrent assets include investment and special purpose funds and these cannot be readily used like the current assets. Most current assets are tangible and they can be converted into cash easily. On the other hand, noncurrent assets are big assets which include equipment or machinery as well as other property which cannot be converted into cash over a very short period. In some instances, noncurrent assets are intangible which makes them different from the current assets. Another major notable difference between current assets and noncurrent assets is that their operating cycles are different. The operating cycle of a current asset is relatively shorter and it does not exceed a period of one year while that of a current asset is very long. The operating cycle of a noncurrent asset is more than 10 years long which makes it different from the current asset. For instance, operating cycle of a wine distillery which is a noncurrent asset may extend 10 years while that of a grocery shop may be no more than just a several days. 4. Order of liquidity can be loosely defined as the order upon which the items in the balance shit are listed depending on their liquidity (Chasteen, Flaherty & O’connor, 1998). As the name implies, order is concerned with chronological orga nisation of items in their descending order while liquidity is concerned with establishing the readiness upon which cash can be disposed. Something that is liquid is readily used such as cash which can be taken straight away from the pocket to purchase something. In this order, the current assets will come after cash or other payments as these can be

Should Laws Governing Nursing Homes Be Changed Essay

Should Laws Governing Nursing Homes Be Changed - Essay Example It leads to abandonment of duties, and possible casualties are patients in need of special care 24 hours. Getting an all-round care should be the heart and center of nursing homes (Brickley, Lu & Wedig, n.d.). Changing the law is known to affect normal operation hence curtailing the norm. Freedom is a right in the bill of rights and as such should not have borders. Care facilities should be directed by government to ensure people using the facility access. The structure that changes due to the enactment of laws will drive uneasiness in the state of being of the care seekers. The outfit robs patients of the calm, which fosters the healing process (Connell, 2004). To conclude, nursing homes are imperative facilities within society. Laws governing the operation some of the times may hinder operation when changes are effected. With respect to rejection of the new law and discomfort felt by the care seekers, changing laws need cautious approach. The right approach to changing and implementing laws will be to involve all the stakeholders in the nursing facility. Brown, L., Hyer, K., & Polivka-West, L. (2007). A comparative study of laws, rules, codes and other influences on nursing homes disaster preparedness in the Gulf Coast states. Behav. Sci. Law, 25(5), 655-675.

Italian and German Unification Essay Example for Free

Italian and German Unification Essay During the years from 1858 to 1871 Italy and afterward Germany emerged as unified countries with one constitution and changed the path of history in Europe and consequently the whole world by shifting and changing or in many cases simply disturbing the balance of power not only in Europe but in the world. Both incidents were the direct results of various nationalist movements in both countries which share similarities and have differences in the basic ideologies behind them and the methods undertaken by their political leaders who made the unifications possible. In Italy the unification movement was lead by Conte di Camillo Benso Cavour (1810-61), who was the prime minister of the government of Piedmont-Sardinia, a constitutional monarchy. Cavour was a nobleman with liberal ideas while the leader of the German unification Prince Otto Edward Leopold von Bismarck, (1815-1898), the chancellor of Prussia, a conservative and absolutist monarchy was a Junker (German noble landowners) and a fanatical conservative. (Merriman Ch. 17) Yet, not only the difference in situations surrounding the social and political life both in Italian and German lands in internal and international stages at the time of unifications, but the differences between the social and political background of these two leaders and their very own way of thinking and ideologies made their methods and the paths of unifications of their homelands different from one another. This paper will discuss the similarities and differences in the methods undertaken by both leaders to achieve unification and to some extent the results of the two incidents. Further it will weigh the promises for democratization against the potential strengths or shortcomings of national unification in these countries. The very first characteristic of both movements that attracts one’s attention is the fact that both goals were achieved by the means of military and political manipulations and maneuvers, although ironically enough, the early attempts made to unify the states under a same flag both in German and Italian lands were made by liberals and in many cases even republicans who in fact gave birth to the modern idea of unified Germany and unified Italy. But all the attempts made by liberals and republicans in the way of Italian and German causes either by political and peaceful means or through revolts and revolutions were total failures and almost all of them ended up in disasters for their leaders and in many cases for every-day average person. As Germany, Italy was characterized â€Å"by the slow and late public emergence of the bourgeois politics and by an accentuated localism both in the collective expectations and social relationships. † (Caglioti) As an example of political and peaceful attempts made by more moderate liberals one can point to the Parliament of Frankfurt which desperately but unsuccessfully tried to force the rulers of the fragmented German states to come together and unify under the rule of Hohenzolern dynasty during the revolutions of 1848-49, and as an example of more radical turn of the unification movements one can look at the revolution of 1848-49 in Italy in which nationalist radical currents along with republican followers of Mazzini conducted revolts against the Habsburg rule and their military presence as well as conservative local rulers of fragmented so called â€Å"Italian† states throughout the peninsula and northern states which ended up in defeat for revolutionaries in the hands of Austrian armies and local conservative forces. (Smith Ch. II) These defeats however, were inspirations for both Bismarck and Cavour to implement the idea of a unified Germany and a unified Italy by means other than peaceful and â€Å"pure political† activities, which had been proven impracticable and incompetent in earlier stages. In other words, although both Bismarck and Cavour were politicians and set the stage for their goals by genus political maneuvers, the final fate of unification both in Italian and German cases were in hands of military and both leaders used military and warfare extensively to settle their word with their opponents. The use of military and warfare not only came to help to prevent the outside opposition to unification cause from destroying it, but it provided both leaders with a very powerful and practical means to strangle any inside opposition conducted either by their political and ideological opponents or the petty rulers of the fragmented states both in Italian and German lands who were the natural claimants and/or opponents to the unification cause. (Merriman Ch. 17) And another ironic fact about the unification attempts made by Cavour and Bismarck is the fact that, although they were trying to unify Germany and Italy under the rule of monarchies with conservative themes, and in the form of very centralized powers and autocratic states. And in case of the government of Prussia even absolutist and totalitarianist, there were very few oppositions and objections to the path of unifications taken by Bismarck and Cavour by liberals and even republicans who in fact opposed and challenged the very existence of the conservative state of Piedmont- Sardinia and the kingdom of Prussia and that in turn had its roots in the fact that liberals and their more radical republican and democrat colleagues were disillusioned by the results of the 1848-49 revolutions and previous attempts made to unify Germany and Italy. (Merriman Ch. 17) The belief of â€Å"Revolution from the bottom†, referred to by radical liberals and republicans were being replaced by the theory of â€Å"Reform from the top† mainly celebrated by moderate conservatives and of course the fact that all those liberals and republicans who were potential opponents to the unification under a conservative rule, were true patriots and all of them were greatly affected by the ideologies of nationalism, if they were not categorized directly as nationalists and that stopped them from opposing to Bismarck and Cavour since in a sense they were all moving towards a same goal when it came to unifying their homelands.

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