Determination of Water Hardness Essay

Introduction: In this lab a total of six titrations are to be performed. Three of them will be done using a known Ca2+ solution, (1.000 g CaCO3 /L solution) and three of them will be done using an unknown solution obtained from the stock room. The objective of this lab is to determine the hardness of water, using the data collected from each titration performed with the unknown sample. Since the hardness of water arises from the presence of metal ions, we can use disodium salt of EDTA and the indicator Eriochrome Black T to determine the concentration of M 2+ ( Mg 2+ or Ca 2+) metal ion impurities. Chemical principle or theory involved in this lab: To determine waters hardness we will use a technique called a chelometric titration. â€Å"When a neutral molecule or anion (lewis base) donates electron pairs and attaches itself to a metal ion center (a Lewis acid), the resulting cluster of atoms forms a single ion called a complex. When such complexes form the electron donating groups are called ligands. When ligands with more than one binding site form complexes with metal ions, we call this process chelation, where the ligand used is called a chelating agent. † (lab manual) In this lab the chelating agent used is Na2EDTA. Our Indictor Eriochrome Black T, is a dye, and will form a pink complex in the presence of a metal cation. As EDTA solution is added to the solution, the metal ions will complex to the EDTA solution leaving the indicator solvated. The chemical equation, with the known calcium ion solution, looks as follows: Where H2In ¯ represents the solvated indicator Erichrome Black T dye. H2In ¯ + Ca 2+ â‡Å' CaIn ¯ + 2H (blue) (pink) As EDTA is added to the solution, it grabs the Ca ions away from the Erichrome Black T dye molecules to form a more stable complex. When solvated, and alone in the solution, the Erichrome Black T dye will produce a blue color; it can be represented by the equation below: EDTA 4 ¯ + CaIn ¯ + 2H → H2In ¯ + CaEDTA 2 ¯ (pink) (blue) Procedure or Method: First prepare your disodium EDTA solution by weighing out 0.7- 0.8 grams of Na2EDTA and dissolve it in 500 mL’s of deionized water. Place in a sealed container and shake vigorously. Standardize the Na2EDTA solution using calcium ion stock solution: Add 10 mL of calcium solution to a flask, and add 30 mL’s of deionized water. Add 3 mL’s of ammonium chloride buffer under the fume hood and stir. Add 4 drops of the Eriochrome Black T indicator dye, then titrate with the disodim EDTA solution within 15 min’s. At the endpoint the color changes from pink to violet to blue within 3-5 seconds. Note the volume of Na2EDTA that was used delivered from the burret, and repeat the titration 2 more times. Obtain an unknown water stock solution from the stock room taking note of the unknown number, then titrate with the standardized disodium EDTA solution: Mix 25 mL’s of the prepared water sample with 20 mL’s of deionized water, then under the fume hood, add 3 mL’s of ammonium chloride buffer and stir. Add 4 drops of the Eriochrome Black T indicator dye, then titrate with the disodim EDTA solution within 15 minute’s Repeat the titration 2 more times, and calculate the hardness of the prepared water sample from each of the titrations. Observations and Calculations: Amount of Na2EDTA solution Amount of Na2EDTA solution   required to titrate calcium Ion solution required to titrate unknown H2O sample Trial 1 25.0 mL15.7 mL Trail 2 23.8 mL14.9 mL Trial 3 23.6 mL15.5 mL Because EDTA chelates Ca 2+ ions in a one-to-one molar ratio we can calculate the moles present of Na2EDTA using the following formula(s): Trial 1: [Na2EDTA] = 10.00 mL CaCO3 Ãâ€" 1.000 g CaCO3 Ãâ€" 1mol CaCO3 Ãâ€" 1mol Na2EDTA 25.0 mL Na2EDTA 1 L CaCO3 100.1g CaCO3 1 mol CaCO3 =.004 moles Na2EDTA Trial 2: [Na2EDTA] = 10.00 mL CaCO3 Ãâ€" 1.000 g CaCO3 Ãâ€" 1mol CaCO3 Ãâ€" 1mol Na2EDTA 23.8 mL Na2EDTA 1 L CaCO3 100.1g CaCO3 1 mol CaCO3 =.004197 moles Na2EDTA Trial 3: [Na2EDTA] = 10.00mL CaCO3 Ãâ€" 1.000 g CaCO3 Ãâ€" 1mol CaCO3 Ãâ€" 1mol Na2EDTA 23.6 mL Na2EDTA 1 L CaCO3 100.1g CaCO3 1mol CaCO3 =.004233 moles Na2EDTA Mean of all 3 trials = .004 + .004197 + .004233 / 3 = .004143 Absolute deviation: Estimated Precision(ppt): Trial 1: |[.004143] – [.004] = [1.43 x 10^-4]| .02229 X 1000 = 23.09 ppt .004143 Trial 2: |[.004143] – [.004197] = [-5.4 x 10^-5]| Trial 3: |[.004143] – [.004233] = [-9 x 10^-5]| H2O hardness Calculated: Trial 1: 15.7 mL Na2EDTA X .004143mol Na2EDTA X 1mol CaCO3 X 100.1g CaCO3 0.02500 L CaCO3 1L Na2EDTA 1mol Na2EDTA 1mol CaCO3 Trial 1 H2O hardness = 260.44 ppm Trial 2: 14.9 mL Na2EDTA X .004143mol Na2EDTA X 1mol CaCO3 X 100.1g CaCO3 0.02500 L CaCO3 1L Na2EDTA 1mol Na2EDTA 1mol CaCO3 Trial 2 H2O hardness = 247.17 ppm Trial 1: 15.5 mL Na2EDTA X .004143mol Na2EDTA X 1mol CaCO3 X 100.1g CaCO3 0.02500 L CaCO3 1L Na2EDTA 1mol Na2EDTA 1mol CaCO3 Trial 3 H2O hardness = 257.12 ppm Average H2O hardness for unknown # 127 = 254.91 ppm Conclusion: The average water hardness for unknown 127 is 254.91 ppm. City of Gilberts average water hardness in 2011 was in the range of 41- 330 ppm (http://www.3mwater.com/medi/documents/ WaterReport_GilbertAZ.pdf). This is a large range but is a range that my unknown water sample would fall within. According to Fairfax Water, a value over 180 ppm is considered â€Å"very hard†, and according to the lab manual water with more than 200 ppm is considered hard. Based on this information I would conclude that my unknown water sample has a high amount of metal ions present. References: Lab Manual City of Gilbert, â€Å"http://www.3mwater.com/medi/documents/WaterReport_GilbertAZ.pdf† FairFax Water, â€Å"http://www.fcwa.org/water/hardness.htm†

Animal Assisted Therapy Essay

Animal-assisted therapy sprouted from the idea and initial belief in the supernatural powers of animals and animal spirits. First appearing in the groupings of early hunter gatherer societies. In modern times Animals are seen as â€Å"agents of socialization† and as providers of â€Å"social support and relaxation.† [5] Though animal assisted therapy is believed to have began in these early human periods it is undocumented and based on speculation. The earliest reported use of AAT for the mentally ill took place in the late 18th century at the York Retreat in England, led by William Tuke.[6] Patients at this facility were allowed to wander the grounds which contained a population of small domestic animals. These were believed to be effective tools for socialization. In 1860, the Bethlem Hospital in England followed the same trend and added animals to the ward, greatly influencing the morale of the patients living there.[6] Sigmund Freud kept many dogs and often had his chow Jofi present during his pioneering sessions of psychoanalysis. He noticed that the presence of the dog was helpful because the patient would find that their speech would not shock or disturb the dog and this reassured them and so encouraged them to relax and confide. This was most effective when the patient was a child or adolescent.[7] The theory behind AAT is what is known as Attachment theory. Therapy involving animals was first used in therapy by Dr. Levinson who accidentally discovered the use of pet therapy with children when he left his dog alone with a difficult child, and upon returning, found the child talking to the dog.[8] However, in other pieces of literature it states that it was founded as early as 1792 at the Quaker Society of Friends York Retreat in England.[9] Velde, Cipriani & Fisher also state â€Å"Florence Nightingale appreciated the benefits of pets in the treatment of individuals with illness. The US military promoted the use of dogs as a therapeutic intervention with psychiatric patients in 1919 at St Elizabeth’s Hospital in Washington, DC. Increased recognition of the value of human–pet bonding was noted by Dr. Boris Levinson in 1961†.[9] Wikipedia – Animal-assisted therapy

Foundations of psychology Essay

(a) Conceptually, reasoning is characterized by various attitudes, emotions, feelings or even assumptions. These are the psychological factors that occur psychologically as parameters that help to develop a logical conclusion in ones reasoning. Rationality in reasoning is what yields a final resolution. However, such reasoning is brought to a state of imbalance in which the different assumptions, feelings and attitudes tend to shape the outcome responses. Perhaps however, each of the attributes could be controlled by aspects of various stimuli that respond to the three stage of classical conditioning. Initially, an aspect of anxiety of wanting to create some reflective thinking occurs. This is because of the desire to come to a logical conclusion of the problem held in the reasoning. The unconditioned stimulus before the reasoning was to arrive at a phenomenon based on the results of the reasoning. The driving force then throws an imbalance in the cognitive state of the brain senses with a basic aim of arriving towards an imperative solution based on the foundations of the question in the reasoning. A state of confusion occurs basically due to inability of making the correct choice of solutions. The solution should be independent of the external environment. Additionally, the choices to the solution also consider that reasoning may have various solutions. However, a conflict exists between the set of decisions alternatives due to the inability of making the most rational decision instantly. However, the principles of classical conditioning help to develop various stimuli corresponding to the various decision alternatives. Each stimulus (like a defensive censor) evokes one another to finally reach at an equilibrium consensus which the cognitive personality chooses as the best decision variable (Anne, 1999) A state of ambivalence follows the above stage of confusion. Ambivalence develops from the emotional perceptions and seeks to give a feeling of no specific inclination in any of the decision alternatives persuaded in the reasoning process. This is however a defense mechanism since it denies the strong efforts of strong feelings in the decision alternatives thus lessening the probable pain which one would have encountered in decision making (Michael, 1977) (b) Role of memory in reasoning The human memory is an important element in cognitive reasoning. Memory is what aligns the different aspects involved in reasoning to yield a correspondence between one another. The attitudes, feelings and assumptions ought to be construed in a dimension that brings reflective ties to one another. Memory can be said as the pivot entry between the functional relationships in all elements that define reasoning. The fundamental scope of reasoning is comprised of various complimentary processes that depend on one another. The philosophical and psychological standpoints have pinpointed on memory and reasoning as working in an integrated system and none can replace one another. Memory acts as an object that brings a tie and conjoins the various independent processes that are involved in the process of reasoning. It is also the object that provides subjective interactions and explorations among the wide scope of the cognitive processes to arrive at a balance of interest which is the defining choice/decision variable of the reasoning process (Thomson, 2001) Conceptually, the association that exists in human reasoning is brought about by the organization and content interaction of the human memory. It helps to bring about a scope of interpretation about the various processes that are involved in the human cognition. Consequently, memory is influential as a trajectory object for the integration of the various processes in the reasoning processes that finally strikes a balance in the choice of decision to follow. (c) Obstacles in reasoning There are various obstacles that could hinder the process of effective reasoning. These include; Mental entrenchment: This is a situation that occurs when the mind is framed in models that represent various problems, problem contexts or perhaps the possible procedures for use in solving a particular problem. When a person involved in reasoning has entrenched mind sets, they may develop methods that creates a solution to the problem in question but which does not provide the most optimal and effective solutions to such problems (Mark, 2007) Either, functional fixedness is an obstacle in effective thinking/reasoning. This case arises when an individual who has an ability of doing specific things extends such methods in creating the decisions in reasoning. He is unable to develop methodologies that addresses a certain problem in question but rather has to refer to what models his/her mind (Mark, 2007) Stereotypes: Stereotypes are those fundamental generalizations that are unsupported by rationality held by the members within a certain setting or the contemporary society. Stereotypes could be learned during childhood. Individuals accustomed to various senses of stereotypical thinking always make generalized choice and decisions in their reasoning process. Negative transfers: This is the condition when the procedures that are to be used in solving a current problem occurs in the future as harder problems that are perhaps unsolvable. This is a contrast of positive transfer that implies the former process for solving gone problems make the current problem easy to solve. These obstacles are highly involved in obstructing the critique of critical and effective thinking by bringing the wrong illusions and impressions in the reasoning process. (d) Types of reasoning involved in the experience Generally, there are various reasoning involved in an experience. Each differs in terms of flow of precepts and hypothetical developments. The process of reasoning within the given set of experience is important in giving the rationality behind the choice of one decision at the expense of the others. However, various types of reasoning are used in the reasoning process. These include; Abduction: This is the process through which a hypothesis statement about an experience is made. It seeks to formulate the fundamental scope of levels with which such a problem/experience occurs and the possible influential factors behind it. The cause and the effect reasoning: This is the mode of reasoning which seeks to relate the starting point of an experience or a problem of interest. It involves establishing the causes and effects and then trying to relate how each affects one another or how each is related to the other. (Manktelow, 1999) Comparative reasoning: This is the reasoning precept that seeks to draw a comparative analogy by comparing and relating one thing with the corresponding alternative. It then seeks to strike a balance of stability between such relationships. Deductive reasoning: It is the reasoning that involves establishing the generalized parameters and then moving towards a drive in the specific rules. Inductive reasoning: This is that which involves establishing the specific parameters and then driving towards the generalized rules. (e) Methods of enhancing effective reasoning in this experience. Critical thinking is that which goes beyond logical reasoning. It is that which works towards scrutinizing arguments by support of empirical evidence. Enhancing reasoning is a combination of various tools that promote the cognitive precepts of the human brain. These include; Physical exercise: Physical exercise is highly supportive in the functionality of the brain. A functional brain is a brain that has the cognitive power of critical and effective reasoning. Taking physical exercise helps to refresh the nervous system whose central context is the brain faculty (Robert, 1991) Taking adequate sleep: It is of necessity that a person takes enough sleep that brings relaxation to the reasoning and thinking autonomies. The mind set that could be infiltrated by sleep and stress is prone to inadequate reasoning. Various decisions by the human reasoning can only be ploughed in by a sober and a relaxed cognitive personality. Neurofeedback process: This is the process through which the precepts of human reasoning are controlled by reflecting back to what presumes a certain reasoning obligation. It is the sensational process of developing a raw feedback to the mind that causes fatal relaxation before engaging into fresh models of reasoning (Anne, 1999) Avoiding reasoning distracters: This is achieved through adequate payment of attention. Though a complex pattern involved in the brain function, it can be ensured by the proper payment of attention to the reasoning process that would then help to withdraw all possible abstractions and therefore driving towards concrete decisions. Reference Anne, T (1999) Critical Reasoning in Ethics. London, Routledge Manktelow, K (1999) Reasoning and Thinking. London. Psychology Press Mark, R (2007) The Psychology of Reasoning, London, Routeldge. Michael, S (1977) Reasoning. New York, McGraw Hill Robert, A (1991) Practical Reasoning. London, Routledge Thomson, A (2001) Critical Reasoning: A Practical Introduction. London, Routlege

Module 5& Essay 1 Example | Topics and Well Written Essays - 1000 words

Module 5& 1 - Essay Example reated four classes which each had a set of rights and duties: they were, in order of decreasing wealth, the Pentacosiomedimni, Hippeis, Zeugitae, Thetes). These classes formed groups that eventually became the governmental bodies in a democracy. First of these bodies was the Ecclesia or Assembly, where all citizens, whatever their designation, were entitled to participate. The Ecclesia became the sovereign body, whose task it was to promulgate laws and decrees, elect officials, and hear appeals from the courts. The second group was the Boule of 400, the council of citizens tasked to run the day-to-day affairs of the city and prepare the business of the Ecclesia. Only citizens from the upper three classes could qualify to be a member of the Boule, and membership was bestowed by election. Each citizen was entitled to serve for only one year, and may serve only twice in his lifetime. Every month, 50 men are chosen by the boule of 500 from among themselves to served in the prytany (the leaders of the Boule), and every day a new leader is chosen by the 50 from among themselves. Except for holidays, the Boule met every day. Another group, the archons or magistrates was reserved for the two higher income groups, and they occupied the higher governmental post. The retired archons then comprised the Areopagus, who oversaw and called attention to any improper actions of the Ecclesia (Kurt A. Raaflaub, Josiah Ober, and Robert W. Wallace, Origins of democracy in ancient Greece, 2007). The laws eventually created by the Ecclesia eliminated slavery of Athenians by Athenians, established rules and procedures for legal redress against abusive archons, and determined political privilege based on productive wealth rather than noble birth. This early democratic system was eventually adapted by the Romans. Many of the basic principles of rule by the people were adopted; Rome had its Senate which took the place of the Assembly, and its decimviri took the place of the boule.

Comparison between the Greek Crisis of 2010 with the Argentinean Dissertation

Comparison between the Greek Crisis of 2010 with the Argentinean crisis of 2001 - Dissertation Example .†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦17 Chapter 4 Conclusions†¦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‚¬ ¦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‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦..23 Chapter 5 Reflective Report†¦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‚¬ ¦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‚¬ ¦Ã¢â‚¬ ¦..25 Bibliography†¦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‚¬ ¦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‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦...28 ABSTRACT This paper attempts to study the Greek Financial Crisis of 2009 and the Argentinean Crisis of 2001 in a comparative framework. The idea is to deduce a policy remedy for Greece to recov er from the recession. The primary issues addressed in this paper comprise the state of the economies of the two countries at the time of recession, the sovereign bond default and its causes. The research tries to compare the policy situations of the two countries to evaluate the effectiveness of the Argentinean policy measures to fight the Greek Crisis. In this situation the paper concludes that though there are similarities in the two situations and issues of concern, but they are not identical. The magnitude of the Greek crisis is much more and consequences much graver due to the ongoing crisis in the global financial markets. Hence the Greek government needs to tread a more unconventional path than Argentina. The government has to depend on the foreign assistance to resurrect itself in the absence of a healthy global financial market. LIST OF ABBREVIATIONS IMF International Monetary Fund EU European Union ECB European Central Bank ACB Argentinean Currency Board EC European Commi ssion UNECE United Nations Economic Commission for Europe 1.... In this paper we studied the emergence of the Greek Crisis in Europe at the backdrop of the global crisis. We delved into the causes of the crisis and compared it with similar experience of recession in the past in other parts of the world. In this context we took a particular interest in the Argentinean Crisis of 2001 because of the conventional policies adopted by the country in fighting their crisis and the success they achieved in reaching their goals. Our primary interest in this paper was if the same model to tackle a recession could be applied for the case of Greek recession. In this scenario we tried to evaluate the situation of the two economies and considered all the channels Greece can assume. We also considered the consequences of the crisis and its impact on the partner economies as well as the global financial situation. That helped us to judge the severity of the crisis and hence the interests of the national and international agencies to help Greece. Our method of ana lysis has been mostly a comparative study of the Greek crisis with the Argentinean crisis and an advantage and disadvantages of the solutions Greek can adopt. In comparison to the Argentinean crisis we noted that both the countries share some similarity in leaning on credit for loan servicing as well as personal consumption. There was also a degenerated trade system owing to overvaluation of currency and wage price rigidity in both the countries.

Respond to the discussion about Aristotle (for online Essay - 1

Respond to the discussion about Aristotle (for online class-introduction to Ethics) - Essay Example Two brothers who are given the same up-bringing turn out to be different in their personalities because of the difference of experiences that they go through. No one is born to act in a certain way, though the ups and downs of life do have a role in depicting an individual’s personality and attitude. However, I do not agree with you when you say that the vicious people can be changed. We can try to change them, but there are several controlling factors that are beyond our control. 2. You have made a good attempt to support your assertion with scientific discussion. However, you have mentioned partial agreement with Aristotle’s conception, approving which I have reservations. It is right that an individual’s characteristic traits are determined by his/her genes. But we should realize that anger is present in every human being to varying degrees. Similarly, kindness, gentleness, arrogance and such other traits are all existent in all of us and in fact, have a big r ole in making us act like humans. However, there are some that control their anger, and there are others who are controlled by their anger. What matters is, how much effort one puts into suppressing the negative feelings and promoting the positive ones. This is what virtuosity and viciousness is all about, and the environmental influence and an individual’s experiences play a decisive role in making him/her virtuous or vicious.

Germany 1866-1945 by Gordon A. Craig Book Analysis Essay

Germany 1866-1945 by Gordon A. Craig Book Analysis - Essay Example One of main obstacles that stood against the Nazi agenda was the conservative-militaristic order that prevailed during the Wilhelmine era. So Hitler was hell bent on destroying this institutional resistance. Adopting means that were not entirely ethical Hitler was able to wrest power in 1933. The six years that followed was devoted to elaborate social engineering whereby, Hitler’s policies moulded Germany into a perpetual war-ready state. This aggressive military posturing was not lost on major neighbouring powers. It was only a matter of time for the inevitable expansion to commence, and it promptly did with the invasion of Poland in September 1939. The unfolding of the Second World Wars saw the worst human casualties in human history. The most painful episode is that of the Holocaust, where 6 million innocent Jews were systematically exterminated as part of the Nazi party’s Final Solution program. Gordon Craig handles the subject with sensitivity and factual accuracy. Gordon Craig presents in detail the portraits of two major political leaders of the period. The fist is Otto van Bismarck and the second is Adolf Hitler. He describes the former as a ‘great star’, duly acknowledging the tremendous impact his personality had on German nationalism. But Craig is not shy of highlighting the failings of this great character as well. For example, he notes how the stubborn trait in the Iron Chancellor held back Republican values in the polity.

International Market Comparison Assignment Example | Topics and Well Written Essays - 250 words - 1

International Market Comparison - Assignment Example Uniliver allows for innovations from all over the world since they have a link for ensuring this in their site (Isobel, 2008). Annual accounting reports of the company is also available nestle, on the other hand, gives an annual report in three minutes. Thus, investor is able to analyse these and make decisions. Nestle gives information about investment opportunities in different regions, in their company. Uniliver provides company news. Nestle, on the other hand, gives press releases that inform investors of the continuing events in the company (Philip, 2008). Nestle gives pictures of the products that they deal in. On the other hand, unilever gives a list of their brands. Both of them achieve the intended purpose by this provision. Nestle provides for a sign in while Uniliver does not. Thus, nestle can control and collect data concerning the interested parties easily (frank, 2005). From the above-varied elements in the websites of both companies, it can be noted that the companies make efforts in globalising their products to the international markets. This has been enhanced by providing information to investors who may take charge in setting up new lines in their products (David, 2008). Information concerning their products is also available in the website in a varied way. This makes the customers aware of the information they may need concerning the products and

Business Communications Essay Example | Topics and Well Written Essays - 2000 words - 1

Business Communications - Essay Example The electronic media has changed the world of communications. Daily meetings, face-to-face chats and trips to other cities and countries are gradually being replaced with emails, teleconferences and video-conferences. This new breed of communications has brought solutions as well as problems for office communications. This paper reviews the academic work on communications in the workplace and the impact introduction of emails have had on workplace practices. Emails have also brought new issues for management. The paper discusses management practices adopted to address these issues. The consequence of introduction of emails in an organization is an important subject for a company using electronic mail. The managerial and working practices need to be adapted to benefit from the positive aspects of using computer mediated communications (CMC) and the negative aspects of CMC as well as effect of reduced face-to face contacts need to be controlled or minimized. Compared to face-to-face contact or telephonic conversation, the advantage of CMC include the ability to retrieve and search materials, overcome the difficulty of time and distance, one-to-many communications, electronically organizing and retrieving emails and other media and reprocessing of other contents with the materials to be handled by CMC. It is often debated whether em... nfluences the decision making and participation within organizations, which types of email adoption are practiced by any single organization, uses and misuses of emails and the technology and/or discipline used to control email misuse are subject of considerable interest in the use of this medium of communication. The argument for and against emails versus face-to-face communications are often discussed in terms of Media Communication Theories. [D'Ambra et al, 1998] discuss the new organizational media with reference to Media Richness Theory (MRT) developed by [Daft & Lengel, 1986]. Media richness theory is often applied to determine the question of choice and effectiveness. The [Daft &Lengel, 1986] classification considered immediacy; the opportunity to provide timely feedback, Multiple cues; the capability of the media to provide meaning through cues such as body language, voice and tones, language variety; the capability of the medium to explain the message by using different words and personal source; the ability to convey feelings. This classification gives oral media over written media. A typical classification of different media according to [Daft & Lengel, 1984, 1986] MRT is as follows [cited in Mondyu, 1997] Media Ranking [cited in Mondyu, 1997] Communication Channel Score Face-to-Face 1.00 Telephone 0.94 Tours and Visits 0.82 Voice Conferencing 0.79 Formal Group Meeting 0.65 Computer Generated Reports 0.47 Memos and Documents 0.27 Email 0.13 Facsimile 0.11 However, the original Daft and Lengel criteria were not designed with modern communication media in mind, assuming Face-to-Face as the standard, produces a result that is biased against the Computer Mediated Communications (CMC). [Daft & Lengel, 1984] argue that a 'rich' media must have no or low

Chemical reaction paper Essay Example | Topics and Well Written Essays - 250 words

Chemical reaction paper - Essay Example The chlorine compounds formed such as hypochlorite is in unstable and decomposes gaining oxygen to form a stable compound. Proper understanding of how bleach works require scrutiny of the changes that take place at the molecular level. The oxidation process by the bleach breaks the chemical bonds of the coloured part of the molecules known as the chromophore. The breaking of the bond changes the molecule in such a way that it has no color or does not reflect any color in the normal spectrum that can be seen with naked eyes. On the other hand, reducing bleach acts by converting the double bond of the chromophore into a single bond and thus changes the optical structure of the compound making it colorless (Innes, 2009). During the process, some bonds are broken. The chemical bond in the chromophore is broken which converts it to a compound that has no color or cannot reflect color in the normal spectrum. Another type of bond broken is the covalent bond in the bleaching agent as the release or gaining of oxygen atom

Life in the Trenches Essay Example for Free

Life in the Trenches Essay World War One, also known as the Great War, was a war that would change all wars. Never in the history of humanity had there been a war fought in such a manor, and it would change the way all wars that followed it were fought. World War I was expected to be a relatively short war, as those in the past had been, and a war of great battles and movement. However WWI was typified by its lack of movement, years of stalemates and great battles that turned out to be massive slaughters where hundreds of thousands of men died for a very small gain in territory. The most important aspect of WWI that made it so unique was its use of a new tactic of digging a series of connecting trenches that carved up the landscape of the Western and Eastern fronts. This use of trenches by both the Allies and the Germans was one of the primary reasons that WWI lasted as long as it did. Life in the trenches was a horrifying experience for any man who served in the Great War. The terrible conditions in the trenches would only be fully known by the public after the war was over in late 1918. The armies of the Allies had strict rules against the public gaining knowledge of the details of the war and used many methods to prevent them knowing the truth. After the Battle of the Marne in September 1914, the German army was forced to retreat. They had failed in their objective to force France into and early surrender and rather than give up the land that they had gained they dug into the ground to secure their position and protect themselves from the Allie fire. Because the Germans were at an advantage of being able to fire at the Allies from below ground level because of this the Allies could not break the German trench line. It was apparent that the Germans would not be removed the Allies followed the German example and dug their own trenches. It was this event that halted movement on both sides and changed the style of warfare forever. Trenches soon stretched across the countryside and spread from the North Sea to Switzerland. Trench life soon became as mentally and physically taxing on soldiers as the actual fighting element of the war. Disease, rats, lice, and boredom became a part of daily life for a soldier in the trenches. After the war was over there were many accounts from soldiers of the appalling conditions and the amount of death that occurred in the trenches. It was estimated that up to  one third of Allied casualties on the Western Front were actually sustained in the trenches . Aside from injuries caused by the enemy, disease accounted for a large amount of that total. Many accounts from soldiers of their time spent in the trenches are dominated by an emphasis on the amount of mud. Living in the trenches soldiers were rarely clean and when they were they did not stay that way for very long. Because of the lack of sanitary conditions in the trenches men suffered from many pests such as rats and frogs as well as more harmful things like lice and diseases like trench foot and shell shock. The rats in the trenches became a problem for the soldiers because there was no way to avoid them or get rid of them. A single pair of rats could produce almost 900 offspring in a year so the infestation continued throughout the war. Rats in the trenches were rumoured to have grown as large as cats on occasion, from eating or stealing scraps and feeding off the corpses of dead soldiers. Because the rats became so fearless the men in the trenches came to loathe them and often spent free time killing them and setting traps . Yet another annoying pest was the lice that continually plagued the men. Soldiers could spend up to an hour a day burning the lice off their bodies and clothes in an attempt to rid themselves of the pests; but the effort was all in vain because they would only be re-infested the next day. Occasionally the men were sent to clean themselves in large baths while their clothes were being put through delousing machines. Unfortunately, this rarely worked; a fair proportion of the eggs remained in the clothes and within two or three hours of the clothes being put on again a mans body heat had hatched them out. Because of the continuously muddy conditions the men often walked around in mud and water sometimes covering as far up as their knees or waists. During the early part of the war over 20,000 men were treated for a condition that became known as trench foot. This was an infection of the feet caused by cold, wet and unsanitary conditions. Without being able to remove wet socks or boots the feet would gradually go numb and the skin would turn red or blue. If untreated, trench foot could turn gangrenous and result in  amputation. The only remedy for trench foot was for the soldiers to dry their feet and change their socks several times a day. By the end of 1915 British soldiers in the trenches had to have three pairs of socks with them and were under orders to change their socks at least twice a day. As well as drying their feet, soldiers were told to cover their feet with grease made from whale oil. The Allies needed to make sure that there would be no additional factors that would affect the morale at home; news of the conditions that the soldiers were forced to live in and the continuing stalemates would surely do that. If confidence in the war effort was diminished and the truth about the trenches was known there would be fewer new recruits and the Allies would be challenged to keep up with the Germans numbers. Most soldiers during the war chose to conceal the horrors of the trench warfare not wishing to expose their families to it. But those who wished to confide in family members and try to share with them their experiences were prevented from doing so by new laws that were put into place. The House of Commons passed the Defence of the Realm Act on August 8th 1914 without debate . The Act gave the government executive power to suppress criticism, imprison without trial and commandeer economic resources for the war effort. As a result all letters that the men wrote were read and censored by the junior officers. Although soldiers were encouraged to write letters to friends and family, the contents of the letters were monitored strictly by the junior officers in accordance with the new laws guidelines. Anything that disclosed information about military action would be removed to ensure that the Allies plans could not get to the Germans. The junior officers were also instructed to remove anything from the letters that discussed the conditions of the trenches or insinuated that the soldiers did not have faith in the actions that were being taken by the army. The members of parliament believed that if family members were to receive letters of that nature the morale in Britain would be effected which would affect the war effort all together. Britain and France also had problems deciding what to do about journalists who were reporting the war. Originally under the Defence of the Realm Act Britain put strict limitations on all reporters often preventing their  articles from making it back to Britain from France. After complaints from the USA on how the British government was treating the situation a cabinet meeting was held to change the policy and to allow selected journalists to report the war. The British government appointed five men to be accredited war correspondents in January of 1915. These men were to remain on the Western Front but to be permitted to do so these journalists had to accept government control over what they wrote. As a result of government interference even the disastrous first day of the Battle of the Somme was reported as a victory. Although some defended their actions saying that they were attempting to spare the feelings of men and women, who, have sons and husbands fighting in France; most of the journalists admitted that they were deeply ashamed of what they had written. After the war most of the accredited war correspondents were offered knighthoods by George V. Some agreed to accept the offer but others like Hamilton Fyfe refused seeing the knighthood as a bribe to keep quiet about the inefficiency and corruption he had witnessed during the war. Fyfe would later become a member of the Union of Democratic Control after the war, and would speak out as a strong critic of the Versailles Peace Treaty . There were a few other instances of the British government preventing criticism of the war from being published. In 1916 the Clyde Workers Committee journal, called The Worker, was brought to court under the Defence of the Realm Act for an article that criticized the war. The two editors of the journal were found guilty and sent to prison, one for six months and the other for a year . Critical novels that were written during the war were prevented from being published or banned if they did make it to publication. A.T. Fitzroys Despised and Rejected, about conscientious objectors during WWI, was published in April 1918. A thousand copies were sold before the book was banned and the publisher prosecuted under the Defence of the Realm Act. Another novel, What Not: A Prophetic Comedy by Rose Macaulay, which ridiculed wartime bureaucracy, was prevented from being published near the end of 1918. Instead it was not published until after the Armistice. So although the conditions for the men who fought in the First World War were horrific, the public did not realize the sacrifices that had been made for their freedom on a daily basis. The suppression of the truth by the British government is a controversial topic that is still debated today. Whether or not the British were justified in preventing the public from knowing the truth it was inevitably disclosed after the wars conclusion. The images seen and the conditions endured plagued on many mens minds after the war was over. The Great War, a war that was to be one of heroic battles and great movement, turned into a war remembered for its lack of movement, its number of casualties and the conditions that had to be endured. World War One changed the way all wars after it were fought, but not for the better.

The Matrix, or Two Sides of Perversion Essay Example for Free

The Matrix, or Two Sides of Perversion Essay When I saw The Matrix at a local theatre in Slovenia, I had the unique opportunity of sitting close to the ideal spectator of the film namely, to an idiot. A man in the late 20ies at my right was so immersed in the film that he all the time disturbed other spectators with loud exclamations, like My God, wow, so there is no reality! †¦ I definitely prefer such naive immersion to the pseudo-sophisticated intellectualist readings which project into the film the refined philosophical or psychoanalytic conceptual distinctions. (1) It is nonetheless easy to understand this intellectual attraction of The Matrix: is it not that The Matrix is one of the films which function as a kind of Rorschach test [http://rorschach. test. at/] setting in motion the universalized process of recognition, like the proverbial painting of God which seems always to stare directly at you, from wherever you look at it — practically every orientation seems to recognize itself in it? My Lacanian friends are telling me that the authors must have read Lacan; the Frankfurt School partisans see in the Matrix the extrapolated embodiment of Kulturindustrie, the alienated-reified social Substance (of the Capital) directly taking over, colonizing our inner life itself, using us as the source of energy; New Agers see in the source of speculations on how our world is just a mirage generated by a global Mind embodied inthe World Wide Web. This series goes back to Platos Republic: does The Matrix not repeat exactly Platos dispositif of the cave (ordinary humans as prisoners, tied firmly to their seats and compelled to watch the shadowy performance of (what they falsely consider to be) reality? The important difference, of course, is that when some individuals escape their cave predicament and step out to the surface of the Earth, what they find there is no longer the bright surface illuminated by the rays of the Sun, the supreme Good, but the desolate desert of the real. The key opposition is here the one between Frankfurt School and Lacan: should we historicize the Matrix into the metaphor of the Capital that colonized culture and subjectivity, or is it the reification of the symbolic order as such? However, what if this very alternative is false? What if the virtual character of the symbolic order as such is the very condition of historicity? Reaching the End Of the World Of course, the idea of the hero living in a totally manipulated and controlled artificial universe is hardly original: The Matrix just radicalizes it by bringing in virtual reality. The point here is the radical ambiguity of the VR with regard to the problematic of iconoclasm. On the one hand, VR marks the radical reduction of the wealth of our sensory experience to — not even letters, but — the minimal digital series of 0 and 1, of passing and non-passing of the electrical signal. On the other hand, this very digital machine generates the simulated experience of reality which tends to become indiscernable from the real reality, with the consequence of undermining the very notion of real reality — VR is thus at the same time the most radical assertion of the seductive power of images. Is not the ultimate American paranoiac fantasy that of an individual living in a small idyllic Californian city, a consummerist paradise, who suddenly starts to suspect that the world he lives in is a fake, a spectatle staged to convince him that he lives in a real world, while all people around him are effectively actors and extras in a gigantic show? The most recent example of this is Peter Weirs The Truman Show (1998), with Jim Carrey playing the small town clerk who gradually discovers the truth that he is the hero of a 24-hours permanent TV show: his hometown is constructed on a a gigantic studio set, with cameras following him permanently. Sloterdijks sphere is here literally realized, as the gigantic metal sphere that envelopes and isolates the entire city. This final shot of The Truman Show may seem to enact the liberating experience of breaking out from the ideological suture of the enclosed universe into its outside, invisible from the ideological inside. However, what if it is precisely this happy denouement of the film (let us not forget: applauded by the millions around the world watching the last minutes of the show), with the hero breaking out and, as we are led to believe, soon to join his true love (so that we have again the formula of the production of the couple! ), that is ideology at its purest? What if ideology resides in the very belief that, outside the closure of the finite universe, there is some true reality to be entered? (2) Among the predecessors of this notion, it is worth mentioning Phillip Dicks Time Out of Joint (1959), in which a hero living a modest daily life in a small idyllic Californian city of the late 50s, gradually discovers that the whole town is a fake staged to keep him satisfied†¦ The underlying experience of Time Out of Joint and of The Truman Show is that the late capitalist consummerist Californian paradise is, in its very hyper-reality, in a way irreal, substanceless, deprived of the material inertia. So it is not only that Hollywood stages a semblance of real life deprived of the weight and inertia of materiality — in the late capitalist consummerist society, real social life itself somehow acquires the features of a staged fake, with our neighbors behaving in real life as stage actors and extras†¦ The ultimte truth of the capitalist utilitarian de-spiritualized universe is the de-materialization of the real life itself, its reversal into a spectral show. In the realm of science-fiction, one should mention also Brian Aldiss Starship, in which members of a tribe leave in a closed world of a tunnel in a giant starship, isolated from the rest of the ship by thick vegetation, unaware that there is a universe beyond; finally, some children penetrate the bushes and reach the world beyond, populated by other tribes. Among the older, more naive forerunners, one should mention George Seatons 36 Hours, the film from the early 60ies about an American officer (James Garner) who knows all the plans for the D Day invasion of Normandy and is accidentally taken prisoner by Gernans just days before the invasion. Since he is taken prisoner unconscious, in a blast of explosion, the Germans quickly construct for him a replica of small American military hospital resort, trying to convince him that he now lives in 1950, that America won the war and that he has lost memory for the last 6 years — the idea being that he would tell all about the invasion plans for the Germans to prepare themselves; of course, cracks soon appear in this carefully constructed edifice†¦ (Did not Lenin himself, in the last 2 years of his life, lived in an almost similar controlled environment, in which, as we now know, Stalin had printed hor him a specially prepared one copy of Pravda, censored of all news that would tell Lenin about the political struggles going on, with the justification that Comrade Lenin should take a rest and not be excited by unnecessary provocations.) What lurks in the background is, of course, the pre-modern notion of arriving at the end of the universe: in the well-known engravings, the surprised wanderers approach the screen/curtain of heaven, a flat surfaced with painted stars on it, pierce it and reach beyond — it is exactly this that happens at the end of The Truman Show. No wonder that the last scene of the film, when Truman steps up the stairs attached to the wall on which the blue sky horizon is painted and opens up there the door, has a distinct Magrittean touch: is it not that, today, this same sensitivity is returning with a vengeance? Do works like Syberbergs Parsifal, in which the infinite horizon is also blocked by the obviously artificial rear-projections, not signal that the time of the Cartesian infinite perspective is running out, and that we are returning to a kind of renewed medieval pre-perspective universe? Fred Jameson perspicuously drew attention to the same phenomenon in some of the Raymond Chandlers novels and Hitchcocks films: the shore of the Pacific ocean in Farewell, My Lovely functions as a kind of end/limit of the world, beyond which there is an unknown abyss; and it is similar with the vast open valley that stretches out in front of the Mount Rashmore heads when, on the run from their pursuers, Eva-Marie Saint and Cary Grant reach the peak of the monument, and into which Eva-Marie Saint almost falls, before being pulled up by Cary Grant; and one is tempted to add to this series the famous battle scene at a bridge on the Vietnamese/Cambodgian frontier in Apocalypse Now, where the space beyond the bridge is experienced as the beyond of our known universe. And how not to recall that the idea that our Earth is not the planet floating in the infinite space, but a circular opening, hole, within the endless compact mass of eternal ice, with the sun in its center, was one of the favorite Nazi pseudo-scientific fantasies (according to some reports, they even considered putting some telescopes on the Sylt islands in order to observe America)? The Really Existing Big Other What, then, is the Matrix? Simply the Lacanian big Other, the virtual symbolic order, the network that structures reality for us. This dimension of the big Other is that of the constitutive alienation of the subject in the symbolic order: the big Other pulls the strings, the subject doesnt speak, he is spoken by the symbolic structure. In short, this big Other is the name for the social Substance, for all that on account of which the subject never fully dominates the effects of his acts, i. e. on account of which the final outcome of his activity is always something else with regard to what he aimed at or anticipated. However, it is here crucial to note that, in the key chapters of Seminar XI, Lacan struggles to delineate the operation that follows alienation and is in a sense its counterpoint, that of separation: alienation IN the big Other is followed by the separation FROM the big Other. Separation takes place when the subject takes note of how the big Other is in itself inconsistent, purely virtual, barred, deprived of the Thing — and fantasy is an attempt to fill out this lack of the Other, not of the subject, i. e. to (re)constitute the consistency of the big Other. For that reason, fantasy and paranoia are inherently linked: paranoia is at its most elementary a belief into an Other of the Other, into another Other who, hidden behind the Other of the explicit social texture, programs (what appears to us as) the unforeseen effects of social life and thus guarantees its consistency: beneath the chaos of market, the degradation of morals, etc., there is the purposeful strategy of the Jewish plot†¦ This paranoiac stance acquired a further boost with todays digitalization of our daily lives: when our entire (social) existence is progressively externalized-materialized in the big Other of the computer network, it is easy to imagine an evil programmer erasing our digital identity and thus depriving us of our social existence, turning us into non-persons. Following the same paranoiac twist, the thesis of The Matrix is that this big Other is externalized in the really existing Mega-Computer. There is — there HAS to be — a Matrix because things are not right, opportunities are missed, something goes wrong all the time, i. e. the films idea is that it is so because there is the Matrix that obfuscates the true reality that is behind it all. Consequently, the problem with the film is that it is NOT crazy enough, because it supposes another real reality behind our everyday reality sustained by the Matrix. However, to avoid the fatal misunderstanding: the inverse notion that all there is is generated by the Matrix, that there is NO ultimate reality, just the infinite series of virtual realities mirroring themselves in each other, is no less ideological. (In the sequels to The Matrix, we shall probably learn that the very desert of the real is generated by (another) matrix. ) Much more subversive than this multiplication of virtual universes would have been the multiplication of realities themselves — something that would reproduce the paradoxical danger that some physicians see in recent high accelerator experiments. As is well known, scientist are now trying to construct the accelerator capable of smashing together the nuclei of very heavy atoms at nearly the speed of light. The idea is that such a collision will not only shatter the atoms nuclei into their constituent protons and neutrons, but will pulverize the protons and neutrons themselves, leaving a plasma, a kind of energy soup consisting of loose quark and gluon particles, the building blocks of matter that have never before been studied in such a state, since such a state only existed briefly after the Big Bang. However, this prospect has given rise to a nightmarish scenario: what if the success of this experiment will create a doomsday machine, a kind of world-devouring monster that will with inexorable necessity annihilate the ordinary matter around itself and thus abolish the world as we know it? The irony of it is that this end of the world, the disintegration of the universe, would be the ultimate irrefutable proof that the tested theory is true, since it would suck all matter into a black hole and then bring about a new universe, i. e. perfectly recreate the Big Bang scenario. The paradox is thus that both versions — (1) a subject freely floating from one to another VR, a pure ghost aware that every reality is a fake; (2) the paranoiac supposition of the real reality beneath the Matrix — are false: they both miss the Real. The film is not wrong in insisting that there IS a Real beneath the Virtual Reality simulation as Morpheus puts to Neo when he shows him the ruined Chicago landscape: Welcome to the desert of the real. However, the Real is not the true reality behind the virtual simulation, but the void which makes reality incomplete/inconsistent, and the function of every symbolic Matrix is to conceal this inconsistency — one of the ways to effectuate this concealment is precisely to claim that, behind the incomplete/inconsistent reality we know, there is another reality with no deadlock of impossibility structuring it. The big Other doesnt exist Big Other also stands for the field of common sense at which one can arrive after free deliberation; philosophically, its last great version is Habermass communicative community with its regulative ideal of agreement. And it is this big Other that progressively disintegrates today. What we have today is a certain radical split: on the one hand, the objectivized language of experts and scientists which can no longer be translated into the common language accessible to everyone, but is present in it in the mode of fetishized formulas that no one really understands, but which shape our artistic and popular imaginary (Black Hole, Big Bang, Superstrings, Quantum Oscillation†¦). Not only in natural sciences, but also in economy and other social sciences, the expert jargon is presented as an objective insight with which one cannot really argue, and which is simultaneously untranslatable into our common experience. In short, the gap between scientific insight and common sense is unbridgeable, and it is this very gap which elevates scientists into the popular cult-figures of the subjects supposed to know (the Stephen Hawking phenomenon). The strict obverse of this objectivity is the way in which, in the cultural matters, we are confronted with the multitude of life-styles which one cannot translate into each other: all we can do is secure the conditions for their tolerant coexistence in a multicultural society. The icon of todays subject is perhaps the Indian computer programmer who, during the day, excels in his expertise, while in the evening, upon returning home, he lits the candle to the local Hindu divinity and respects the sacredness of the cow. This split is perfectly rendered in the phenomenon of cyberspace. Cyberspace was supposed to bring us all together in a Global Village; however, what effectively happens is that we are bombarded with the multitude of messages belonging to inconsistent and incompatible universes — instead of the Global Village, the big Other, we get the multitude of small others, of tribal particular identifications at our choice. To avoid a misunderstanding: Lacan is here far from relativizing science into just one of the arbitrary narratives, ultimately on equal footing with Politically Correct myths, etc. : science DOES touch the Real, its knowledge IS knowledge in the Real — the deadlock resides simply in the fact that scientific knowledge cannot serve as the SYMBOLIC big Other. The gap between modern science and the Aristotelian common sense philosophical ontology is here insurmountable: it emerges already with Galileo, and is brought to extreme in quantum physics, where we are dealing with the rules/laws which function, although they cannot ever be retranslated into our experience of representable reality. The theory of risk society and its global reflexivization is right in its emphasis one how, today, we are at the opposite end if the classical Enlightenment universalist ideology which presupposed that, in the long run, the fundamental questions can be resolved by way of the reference to the objective knowledge of the experts: when we are confronted with the conflicting opinions about the environmental consequences of a certain new product (say, of genetically modified vegetables), we search in vain for the ultimate expert opinion. And the point is not simply that the real issues are blurred because science is corrupted through financial dependence on large corporations and state agencies — even in themselves, sciences cannot provide the answer. Ecologists predicted 15 years ago the death of our forrests — the problem is now a too large increasee of wood†¦ Where this theory of risk society is too short is in emphasizing the irrational predicament into which this puts us, common subjects: we are again and again compelled to decide, although we are well aware that we are in no position to decide, that our decision will be arbitrary. Ulrich Beck and his followers refer here to the democratic discussion of all options and consensus-building; however, this does not resolve the immobilizing dilemma: why should the democratic discussion in which the majority participates lead to better result, when, cognitively, the ignorance of the majority remains. The political frustration of the majority is thus understandable: they are called to decide, while, at the same time, receiving the message that they are in no position effectively to decide, i. e. to objectively weigh the pros and cons. The recourse to conspiracy theories is a desperate way out of this deadlock, an attempt to regain a minimum of what Fred Jameson calls cognitive mapping. Jodi Dean(3) drew attention to a curious phenomenon clearly observable in the dialogue of the mutes between the official (serious, academically institutionalized) science and the vast domain of so-called pseudo-sciences, from ufology to those who want to decipher the secrets of the pyramids: one cannot but be struck by how it is the oficial scientists who proceed in a dogmatic dismissive way, while the pseudo-scientists refer to facts and argumentation deprived of the common prejudices. Of course, the answer will be here that established scientists speak with the authority of the big Other of the scientific Institution; but the problem is that, precisely, this scientific big Other is again and again revealed as a consensual symbolic fiction. So when we are confronted with conspiracy theories, we should proceed in a strict homology to the proper reading of Henry James The Turn of the Screw: we should neither accept the existence of ghosts as part of the (narrative) reality nor reduce them, in a pseudo-Freudian way, to the projection of the heroines hysterical sexual frustrations. Conspiracy theories, of course, are not to be accepted as fact however, one should also not reduce them to the phenomenon of modern mass hysteria. Such a notion still relies on the big Other, on the model of normal perception of shared social reality, and thus does not take into account how it is precisely this notion of reality that is undermined today. The problem is not that ufologists and conspiracy theorists regress to a paranoiac attitude unable to accept (social) reality; the problem is that this reality itself is becoming paranoiac. Contemporary experience again and again confronts us with situations in which we are compelled to take note of how our sense of reality and normal attitude towards it is grounded in a symbolic fiction, i. e. how the big Other that determines what counts as normal and accepted truth, what is the horizon of meaning in a given society, is in no way directly grounded in facts as rendered by the scientific knowledge in the real. Let us take a traditional society in which modern science is not yet elevated into the Master-discourse: if, in its symbolic space, an individual advocates propositions of modern science, he will be dismissed as madman — and the key point is that it is not enough to say that he is not really mad, that it is merely the narrow ignorant society which puts him in this position — in a certain way, being treated as a madman, being excluded from the social big Other, effectively EQUALS being mad. Madness is not the designation which can be grounded in a direct reference to facts (in the sense that a madman is unable to perceive things the way they really are, since he is caught in his hallucinatory projections), but only with regard to the way an individual relates to the big Other. Lacan usually emphasizes the opposite aspect of this paradox: the madman is not only a beggar who thinks he is a king, but also a king who thinks he is a king, i. e. madness designates the collapse of the distance between the Symbolic and the Real, an immediate identification with the symbolic mandate; or, to take his other exemplary statement, when a husband is pathologically jealous, obsessed by the idea that his wife sleeps with other men, his obsession remains a pathological feature even if it is proven that he is right and that his wife effectively sleeps with other men. The lesson of such paradoxes is clear: pathological jealously is not a matters of getting the facts false, but of the way these facts are integrated into the subjects libidinal economy. However, what one should assert here is that the same paradox should also be performed as it were in the opposite direction: the society (its socio-symbolic field, the big Other) is sane and normal even when it is proven factually wrong. (Maybe, it was in this sense that the late Lacan designated himself as psychotic: he effectively was psychotic insofar as it was not possible to integrate his discourse into the field of the big Other. ) One is tempted to claim, in the Kantian mode, that the mistake of the conspiracy theory is somehow homologous to the paralogism of the pure reason, to the confusion between the two levels: the suspicion (of the received scientific, social, etc. common sense) as the formal methodological stance, and the positivation of this suspicion in another all-explaining global para-theory. Screening the Real From another standpoint, the Matrix also functions as the screen that separates us from the Real, that makes the desert of the real bearable. However, it is here that we should not forget the radical ambiguity of the Lacanian Real: it is not the ultimate referent to be covered/gentrified/domesticated by the screen of fantasy — the Real is also and primarily the screen itself as the obstacle that always-already distorts our perception of the referent, of the reality out there. In philosophical terms, therein resides the difference between Kant and Hegel: for Kant, the Real is the noumenal domain that we perceive schematized through the screen of transcendental categories; for Hegel, on the contrary, as he asserts exemplarily in the Introduction to his Phenomenology, this Kantian gap is false. Hegel introduces here THREE terms: when a screen intervenes between ourselves and the Real, it always generates a notion of what is In-itself, beyond the screen (of the appearance), so that the gap between appearance and the In-itself is always-already for us. Consequently, if we subtract from the Thing the distortion of the Screen, we loose the Thing itself (in religious terms, the death of Christ is the death of the God in himself, not only of his human embodiment) — which is why, for Lacan, who follows here Hegel, the Thing in itself is ultimately the gaze, not the perceived object. So, back to the Matrix: the Matrix itself is the Real that distorts our perception of reality. A reference to Levi-Strausss exemplary analysis, from his Structural Anthropology, of the spatial disposition of buildings in the Winnebago, one of the Great Lake tribes, might be of some help here. The tribe is divided into two sub-groups (moieties), those who are from above and those who are from below; when we ask an individual to draw on a piece of paper, or on sand, the ground-plan of his/her village (the spatial disposition of cottages), we obtain two quite different answers, depending on his/her belonging to one or the other sub-group. Both perceive the village as a circle; but for one sub-group, there is within this circle another circle of central houses, so that we have two concentric circles, while for the other sub-group, the circle is split into two by a clear dividing line. In other words, a member of the first sub-group (let us call it conservative-corporatist) perceives the ground-plan of the village as a ring of houses more or less symmetrically disposed around the central temple, whereas a member of the second (revolutionary-antagonistic) sub-group perceives his/her village as two distinct heaps of houses separated by an invisible frontier†¦(4) The central point of Levi-Strauss is that this example should in no way entice us into cultural relativism, according to which the perception of social space depends on the observers group-belonging: the very splitting into the two relative perceptions implies a hidden reference to a constant — not the objective, actual disposition of buildings but a traumatic kernel, a fundamental antagonism the inhabitants of the village were unable to symbolize, to account for, to internalize, to come to terms with, an imbalance in social relations that prevented the community from stabilizing itself into a harmonious whole. The two perceptions of the ground-plan are simply two mutually exclusive endeavours to cope with this traumatic antagonism, to heal its wound via the imposition of a balanced symbolic structure. Is it necessary to add that things stand exactly the same with respect to sexual difference: masculine and feminine are like the two configurations of houses in the Levi-Straussian village? And in order to dispel the illusion that our developed universe is not dominated by the same logic, suffice it to recall the splitting of our political space into Left and Right: a Leftist and a Rightist behave exactly like members of the opposite sub-groups of the Levi-Straussian village. They not only occupy different places within the political space; each of them perceives differently the very disposition of the political space — a Leftist as the field that is inherently split by some fundamental antagonism, a Rightist as the organic unity of a Community disturbed only by foreign intruders. However, Levi-Strauss make here a further crucial point: since the two sub-groups nonetheless form one and the same tribe, living in the same village, this identity somehow has to be symbolically inscribed — how, if the entire symbolic articulation, all social institutions, of the tribe are not neutral, but are overdetermined by the fundamental and constitutive antagonistic split? By what Levi-Strauss ingeniously calls the zero-institution, a kind of institutional counterpart to the famous mana, the empty signifier with no determinate meaning, since it signifies only the presence of meaning as such, in opposition to its absence: a specific institution which has no positive, determinate function — its only function is the purely negative one of signalling the presence and actuality of social institution as such, in opposition to its absence, to pre-social chaos. It is the reference to such a zero-institution that enables all members of the tribe to experience themselves as such, as members of the same tribe. Is, then, this zero-institution not ideology at its purest, i. e.the direct embodiment of the ideological function of providing a neutral all-encompassing space in which social antagonism is obliterated, in which all members of society can recognize themselves? And is the struggle for hegemony not precisely the struggle for how will this zero-institution be overdetermined, colored by some particular signification? To provide a concrete example: is not the modern notion of nation such a zero-institution that emerged with the dissolution of social links grounded in direct family or traditional symbolic matrixes, i. e. when, with the onslaught of modernization, social institutions were less and less grounded in naturalized tradition and more and more experienced as a matter of contract. (5) Of special importance is here the fact that national identity is experienced as at least minimally natural, as a belonging grounded in blood and soil, and as such opposed to the artificial belonging to social institutions proper (state, profession†¦): pre-modern institutions functioned as naturalized symbolic entities (as institutions grounded in unquestionable traditions), and the moment institutions were conceived as social artefacts, the need arose for a naturalized zero-institution that would serve as their neutral common ground. And, back to sexual difference, I am tempted to risk the hypothesis that, perhaps, the same logic of zero-institution should be applied not only to the unity of a society, but also to its antagonistic split: what if sexual difference is ultimately a kind of zero-institution of the social split of the humankind, the naturalized minimal zero-difference, a split that, prior to signalling any determinate social difference, signals this difference as such? The struggle for hegemony is then, again, the struggle for how this zero-difference will be overdetermined by other particular social differences. It is against this background that one should read an important, although usually overlooked, feature of Lacans schema of the signifier: Lacan replaces the standard Saussurean scheme (above the bar the word arbre, and beneath it the drawing of a tree) with, above the bar, two words one along the other, homme and femme, and, beneath the bar, two identical drawings of a door. In order to emphasize the differential character of the signifier, Lacan first replaces Saussures single scheme with a signifiers couple, with the opposition man/woman, with the sexual difference; but the true surprise resides in the fact that, at the level of the imaginary referent, THERE IS NO DIFFERENCE (we do not get some graphic index of the sexual difference, the simplified drawing of a man and a woman, as is usually the case in most of todays restrooms, but THE SAME door reproduced twice). Is it possible to state in clearer terms that sexual difference does not designate any biological opposition grounded in real properties, but a purely symbolic opposition to which nothing corresponds in the designated objects — nothing but the Real of some undefined X which cannot ever be captured by the image of the signified? Back to Levi-Strausss example of the two drawings of the village: it is here that one can see it what precise sense the Real intervenes through anamorphosis. We have first the actual, objective, arrangement of the houses, and then its two different symbolizations which both distort in an amamorphic way the actual arrangement. However, the real is here not the actual arrangement, but the traumatic core of the social antagonism which distorts the tribe members view of the actual antagonism.

Stock Market Performance and Economic Relationship

Stock Market Performance and Economic Relationship Abstract: Whether national economy is affecting the stock market or other way round? A lot of studies have done on the past what are relationship of these variables. In my work I have used cointegration and Granger Causality method to find out the relationship between the stock index price and Economic growth indicator GDP. 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. Another study from Levine and Zervos (1996) using the data of 24 countries found that a strong positive correlation between stock market development and economic growth. Their expanded study on 49 countries from 1976-1993, they used Stock Market liquidity, Economic growth rate, Capital Accumulating rate and output Growth Rate. They found that all the variables are positively correlated with each other. 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. The study was done on 47 countries data using cross sectional analysis. In theory the conventional literature on growth was not sufficient enough to look for the connection between financial development and economic growth and the reason is they were focused on the steady state level of capital stock per workerof productivity. And they were not really concentrated on the rate of growth. Actually the main concern was legitimated to exogenous technical progress. (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 gr owth. (Levine. R A spur to economic Growth) A lot of research has established that future economic growth is influenced by countrys financial growth, stock market index returns are another factor of economic growth. The researcher focused to extend their study; they tie together these two strings and started analyzing the relationship between banking industry, stock returns and future economic growth. Research was done on 18 developed and 18 emerging markets and the results are positive and noteworthy relationship between future GDP and stock returns. Few important features can also be predicted such as bank-accounting-disclosure standards, banking crises, insider trading law enforcement and government ownership of banks. (Bank stock returns and economic growth q Rebel A. Cole a, Fariborz Moshirian b,*, Qiongbing Wu c a Department of Finance, DePaul University, Chicago, IL 60604, USA b School of Banking and Finance, The University of New South Wales, Sydney, NSW 2052, Australia c Newcastle raduate School of Business, The University of Newcastle, Newcastle, NSW 2300, Australia Received 29 September 2006; accepted 26 July 2007Available online 21 September 2007) 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. A study by Randall Filler(2000) using 70 countries data over the period 1985-1997 proves that there is a very little relationship between economic growth and stock market especially in developing countries and currency appreciation has occurred. From the result of the study we can see that an important role may be played by the stock market in an economy, and these are not essential for economic growth. 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: Cointegration long term common stochastic trend between non stationary 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 co integrated 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 stationary of variables. The unit root test is usually used to confirm stationary of a series. The 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). In this study I have used Augmented Dickey Fuller Test (ADF) to check whether the series is stationary or not. ADF test is based on the estimate of the following regression: is in this case variable of interest = , is the differencing operator, t is the time trend and is the random component of zero mean and constant variance. The parameters to be estimated are { } Null and alternative hypothesis of unit root test are: , () () 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: 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 non stationary 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. 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. After that I saved the residual from the above equation. Then, = – is representing the estimated residual vector. If the residual is integrated with order zero that means the series for the residual is stationary, and and are then co integrated and vice versa. I have checked it by performing Augmented Dickey fuller test on the residual series on level value with intercept only of each country. An in this situation (1, -) is called co-integrating vector if the series is stationary. 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 is 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 causality approach (1969), lets think the variable y is Economic Growth (GDP) and x is Stock price index, if it is possible to predict the past values of y and x than from the lagged values of y alone. X is said to be granger caused by and y is helping in predicting it. in case of a simple bivariate model, causality can be tested between stock market growth and economic growth. Granger causality run on the basis of the following bivariate regressions of the form: (1) (2) Where GDP denotes economic growth and SP denotes the stock price index and they explain the changes in growth. Variables are expressed in logarithm form. The distribution of and are uncorrelated by assumption. From the equation one it can be said that current GDP is related to lagged values of itself and as well as that of SP. And equation 2 postulates same kind of behaviour for SP. Both the equations can be obtained by ordinary least squares (OLS). The f statistics are the Wald statistics for the joint hypothesis: and F test is carried out for the null hypothesis of no Granger causality. The formula of f statistic is Lagged term is defined here by m; number of parameter is defined as k. 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. Variables level/1st Difference Augmented Dickey Fuller Statistic(ADF) test Japan 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 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 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 D Stock Market Performance and Economic Relationship Stock Market Performance and Economic Relationship Abstract: Whether national economy is affecting the stock market or other way round? A lot of studies have done on the past what are relationship of these variables. In my work I have used cointegration and Granger Causality method to find out the relationship between the stock index price and Economic growth indicator GDP. 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. Another study from Levine and Zervos (1996) using the data of 24 countries found that a strong positive correlation between stock market development and economic growth. Their expanded study on 49 countries from 1976-1993, they used Stock Market liquidity, Economic growth rate, Capital Accumulating rate and output Growth Rate. They found that all the variables are positively correlated with each other. 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. The study was done on 47 countries data using cross sectional analysis. In theory the conventional literature on growth was not sufficient enough to look for the connection between financial development and economic growth and the reason is they were focused on the steady state level of capital stock per workerof productivity. And they were not really concentrated on the rate of growth. Actually the main concern was legitimated to exogenous technical progress. (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 gr owth. (Levine. R A spur to economic Growth) A lot of research has established that future economic growth is influenced by countrys financial growth, stock market index returns are another factor of economic growth. The researcher focused to extend their study; they tie together these two strings and started analyzing the relationship between banking industry, stock returns and future economic growth. Research was done on 18 developed and 18 emerging markets and the results are positive and noteworthy relationship between future GDP and stock returns. Few important features can also be predicted such as bank-accounting-disclosure standards, banking crises, insider trading law enforcement and government ownership of banks. (Bank stock returns and economic growth q Rebel A. Cole a, Fariborz Moshirian b,*, Qiongbing Wu c a Department of Finance, DePaul University, Chicago, IL 60604, USA b School of Banking and Finance, The University of New South Wales, Sydney, NSW 2052, Australia c Newcastle raduate School of Business, The University of Newcastle, Newcastle, NSW 2300, Australia Received 29 September 2006; accepted 26 July 2007Available online 21 September 2007) 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. A study by Randall Filler(2000) using 70 countries data over the period 1985-1997 proves that there is a very little relationship between economic growth and stock market especially in developing countries and currency appreciation has occurred. From the result of the study we can see that an important role may be played by the stock market in an economy, and these are not essential for economic growth. 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: Cointegration long term common stochastic trend between non stationary 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 co integrated 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 stationary of variables. The unit root test is usually used to confirm stationary of a series. The 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). In this study I have used Augmented Dickey Fuller Test (ADF) to check whether the series is stationary or not. ADF test is based on the estimate of the following regression: is in this case variable of interest = , is the differencing operator, t is the time trend and is the random component of zero mean and constant variance. The parameters to be estimated are { } Null and alternative hypothesis of unit root test are: , () () 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: 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 non stationary 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. 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. After that I saved the residual from the above equation. Then, = – is representing the estimated residual vector. If the residual is integrated with order zero that means the series for the residual is stationary, and and are then co integrated and vice versa. I have checked it by performing Augmented Dickey fuller test on the residual series on level value with intercept only of each country. An in this situation (1, -) is called co-integrating vector if the series is stationary. 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 is 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 causality approach (1969), lets think the variable y is Economic Growth (GDP) and x is Stock price index, if it is possible to predict the past values of y and x than from the lagged values of y alone. X is said to be granger caused by and y is helping in predicting it. in case of a simple bivariate model, causality can be tested between stock market growth and economic growth. Granger causality run on the basis of the following bivariate regressions of the form: (1) (2) Where GDP denotes economic growth and SP denotes the stock price index and they explain the changes in growth. Variables are expressed in logarithm form. The distribution of and are uncorrelated by assumption. From the equation one it can be said that current GDP is related to lagged values of itself and as well as that of SP. And equation 2 postulates same kind of behaviour for SP. Both the equations can be obtained by ordinary least squares (OLS). The f statistics are the Wald statistics for the joint hypothesis: and F test is carried out for the null hypothesis of no Granger causality. The formula of f statistic is Lagged term is defined here by m; number of parameter is defined as k. 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. Variables level/1st Difference Augmented Dickey Fuller Statistic(ADF) test Japan 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 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 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 D