WSEAS Transactions on Environment and Development
Print ISSN: 1790-5079, E-ISSN: 2224-3496
Volume 15, 2019
Analysis of a Financial Model for Converting Industrial Waste Tires Into Clean Energy – a Model in Developing Countries
Authors: , ,
Abstract: Vietnam renewable enrgy industry with the involvement of many power thermal firms and energy companies have been growing recently. After the global economic crisis 2007-2011 and the recent post-low inflation 2014-2015, Viet Nam economies, its financial and stock market as well as renewable energy market experienced indirect and direct impacts on their operation, system and price. Although some economists have done researches on the relationship among macro economic factors such as: consumer price index (CPI), inflation, GDP…., this paper aims to consider the interaction between macro economic factors such as Viet Nam inflation and GDP growth rate, US inflation, exchange rate, risk free rate and other macro factors, and esp. their impacts on a big energy firm, in the context Viet Nam and the US economies receive impacts from global economic crisis. This is one main objective of this research paper. This research paper finds out firm stock price has a negative correlation with risk free rate in VN and deposit rate of VN commercial banks, but has a positive correlation with lending rate in Vietnam. And the statistical analysis will generate results which help us to suggest macro policies in favor of the local stock and financial market. Industrial risk over years has been affected much by macro economic risk, credit risk, and legal risk; therefore, government bodies need to issue proper macro economic legal, financial and credit policies in order to stimulate, develop stock market and reduce workload pressure for Vietnam bank system
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Keywords: inflation, stock market, risk free rate, lending rate, exchange rate, price, renewable energy industry
Pages: 447-454
WSEAS Transactions on Environment and Development, ISSN / E-ISSN: 1790-5079 / 2224-3496, Volume 15, 2019, Art. #48