Asian Economic and Financial Review

Asian Economic and Financial Review

Basic info

  • Publisher: Aess
  • Country of publisher: pakistan
  • Date added to EuroPub: 2017/May/11

Subject and more

  • LCC Subject Category: Finance and Financial Services, Economics
  • Publisher's keywords: Economic, Financial
  • Language of fulltext: english
  • Full-text formats available: PDF

Publication charges

  • Article Processing Charges (APCs): No
  • Submission charges: No
  • Waiver policy for charges? No

Editorial information

Open access & licensing

  • Type of License: CC BY
  • License terms
  • Open Access Statement: Yes
  • Year open access content began: 2011
  • Does the author retain unrestricted copyright? False
  • Does the author retain publishing rights? False

Best practice polices

  • Permanent article identifier: DOI
  • Content digitally archived in: LOCKSS, CLOCKSS
  • Deposit policy registered in: None

This journal has '574' articles

Retracted: The Effect of Global Liquidity on Macroeconomic Parameters

Retracted: The Effect of Global Liquidity on Macroeconomic Parameters

Authors: Göknur Umutlu| Hacettepe University Dept. of Business Administration, Ankara, Turkey E-mail: goknur@hacettepe.edu.tr, Yılmaz Yıldız| Adress: Hacettepe...
( 20 downloads)
Abstract

Depending on the international economic integration as a result of the increasingglobalization, national economies have become more sensitive to the externaleconomic developments. In such an environment, it is important to understand theconcept of international liquidity and its effects. We analyze the effect of globalliquidity on Turkish economy in this study. To examine the impact of globalliquidation on Turkish economy empirically, Vector Autoregressive (VAR) modeland cointegration tests are applied by using the data between 1990Q1-2008Q3periods. Cointegration results indicate that global liquidation moves together withTurkey?s national income, inflation rate, treasury benchmark interest rate and realexchange rate in the long run. According to the results of Granger causality test, itis seen that there is causality from global liquidation towards Turkey?s keymacroeconomic variables. The impact-response analysis of the VAR model figuresout the increase in global liquidity leads an appreciation in Turkey?s real exchangerate, decreases national income, inflation and interest rates. The results of thevariance decomposition confirms that the longer the period under review, thestronger the effect of global liquidation. Our findings in this study emphasize theimportance of global integration and liquidity on Turkish economy which isarticulated with the world economy.

Keywords: Liquidity, Turkish Economy, VAR, Cointegration
Exports-Led Growth Hypothesis in Pakistan: Further Evidence

Exports-Led Growth Hypothesis in Pakistan: Further Evidence

Authors: Muhammad Shahbaz| COMSATS Institute of Information Technology, Lahore Campus, Pakistan Email: shahbazmohd@live.com, Pervaz Azim| GC University Faisala...
( 19 downloads)
Abstract

The study considers the exports-led growth hypothesis using quarterly dataover the period 1990-2008 in case of Pakistan. For this purpose, Ng-Perronunit root test, ARDL bounds testing approach to cointegration and errorcorrection method (ECM) for short run dynamics have been applied. Ourresults indicate that exports are positively correlated with economic growthconfirming the validity of exports-led growth hypothesis. Exchange ratedepreciation decreases and real capital stock improves economic growth.

Keywords: Exports, Economic Growth, ARDL Approach
The Arabo-Mediterranean momentum strategies

The Arabo-Mediterranean momentum strategies

Authors: Faten Zoghlami| Finance department, ISCAE University of Manouba, Tunisaia
( 20 downloads)
Abstract

This paper documents strong evidence for the robust profitability of the momentum strategies inter and intra five Arabo-Mediterranean stocks’ markets. Between 1998 and 2007 we find that the related stocks’ returns exhibit a strong continuation pattern during a period of about one year. Even after controlling for the country effect, the neutral-country momentum strategies still yield significantly positive payoffs of about 1.88 percent per month. Nevertheless and although the paper gives evidences that the market and the SMB factors account for the profitability of neutral-country momentum strategies’ payoffs, still some significant parts of the excess returns persist puzzling to the conventional asset pricing models.

Keywords: momentum strategies, Arabo-Mediterranean stocks market, CAPM and three-factor model of Fama and French (1996).
An ARDL Analysis Of The Exchange Rates Principal Determinants: ASEAN-5 Aligned with The Yen

An ARDL Analysis Of The Exchange Rates Principal Determinants: ASEAN-5 Aligned with The Yen

Authors: Abdalrahman AbuDalu| College of Business, Universiti Utara Malaysia, Kedah, Malaysia, Elsadig Musa Ahmed| Economics Unit, Faculty of Business and Law,...
( 19 downloads)
Abstract

This study examines an empirical analysis of long-run and short-run forcing variables of purchasing power parity (PPP) for ASEAN-5 currencies: Malaysian Ringgit, Indonesian Rupiah, the Philippines Peso, Thailand Bath, and Singapore Dollar, against the Japanese Yen, i.e., their real exchange rate (RER). This study uses a recently developed autoregressive distributed lag (ARDL) approach to co-integration (Pesaran et al., 2001) over the period 1991:Q1 – 2006:Q2. Our empirical results point out that the domestic money supply (M1) is the significant long run forcing variable of PPP for ASEAN-5 RER’s for the study periods. However, in the short- run the impact of variables have different impact during the sub-periods and full period for ASEAN-5 countries, the results suggest that the domestic money supply (M1) for Malaysia, Indonesia, Philippines ,and Singapore respectively, , have the highest significant short run forcing variable of PPP for countries RER’s. However, foreign interest rates followed by domestic money supply are the short-run forcing variables for Thailand’s RER. This may be due to the peculiarity of Thailand government’s management of the Asian Financial Crisis (AFC).

Keywords: ARDL, Purchasing Power Parity Real exchange rate, ASEAN-5
Tax Structure and Economic Growth in Côte d’Ivoire: Are Some Taxes Better Than Others?

Tax Structure and Economic Growth in Côte d’Ivoire: Are Some Taxes Better Than Others?

Authors: Yaya KEHO| Ecole Nationale Supérieure de Statistique et d’Economie Appliquée Côte d’Ivoire
( 23 downloads)
Abstract

This paper examines the relationships between taxation and output in Côte d’Ivoire during the period 1960-2006. The bounds testing approach to cointegration devised by Pesaran et al. (2001) showed that tax variables, except direct tax, and real GDP are cointegrated and positively related in the long-run. The results of Granger causality tests indicated bidirectional causality between tax revenues and output in the long-run, implying a virtuous circle of tax and GDP. Direct taxes, however, did not cause GDP both in the short and long-run. These findings suggest that i) the tax revenues and, therefore, budget deficit, depend upon the economic activity, and ii) switching the tax burden from direct to indirect taxes is likely to have a positive effect on the economic output.

Keywords: Taxes, economic growth, Cointegration, Granger causality
The Relative Effectiveness of Monetary and Fiscal Policies in Economic Growth: A Case Study of Pakistan

The Relative Effectiveness of Monetary and Fiscal Policies in Economic Growth: A Case Study of Pakistan

Authors: Tariq Mahmood| Graduate Student, Department of Economics, University of Sargodha, Maqbool Hussain Sial| Dean Faculty of Management Sciences,University...
( 19 downloads)
Abstract

In this study the role of monetary and fiscal policies in economic growth of Pakistan is studied using time series data for the period 1973-2008. The objective of this study is to discover the ways by which fiscal and monetary policies can be established to boost economic growth, highlight present Pakistan fiscal and monetary challenges to discover regions which may yield upgrading to the fiscal and monetary framework and consequently increase employment opportunities and the budget revenues in Pakistan. The augmented Dickey Fuller unit root procedure is used to check the time series properties. The Autoregressive Distributed Lag Model technique is used to find the long-run relationship between fiscal /monetary policy and economic growth. The results show that monetary and fiscal policies both play a significant role in the economic growth of Pakistan. The relationship between GDP and Government Current Expenditure (GCE) is found to be negative while, Currency in Circulation (CIR) and Government Development Expenditure (GDE) affect GDP positively in case of Pakistan.

Keywords: Fiscal policy, monetary policy, government spending, economic growth
Insurance Market Activity and Economic Growth: Evidence from Nigeria

Insurance Market Activity and Economic Growth: Evidence from Nigeria

Authors: Philip Chimobi Omoke| Department of Economics and Development Studies Covenant University Ota, Ogun State
( 21 downloads)
Abstract

The focus of this study is to empirically assess insurance market activities in Nigeria with the view to determining its impact on economic growth. The period of study was 1970- 2008, the study made use of insurance density measures (premium per capita) as a measure for insurance market activity and real GDP for economic growth. It also employed control variables such as inflation and savings rate as other determinants of growth. The Johansen cointegration and vector error correction approach was used to estimate the relationship between the variables. All the variables used were stationary at first difference and the result showed a long term relationship existing among the variables. The hallmark finding of this study is that the insurance sector did not reveal any positively and significant affect on economic growth in Nigeria within the period of study. The result shows a low insurance market activity in Nigeria and that Nigerians have not fully embrace the insurance industry despite its importance to the growth of the economy.

Keywords: Insurance, Financial Intermediation, Economic growth, Cointegration, Vector error correction approach
Vulnerability of Southern Mediterranean Countries to Exogenous Shocks: Structural VAR Approach

Vulnerability of Southern Mediterranean Countries to Exogenous Shocks: Structural VAR Approach

Authors: Sarra BEN SLIMANE| Najran University, DEFI Université de la Méditerranée Aix Marseille II, Moez BEN TAHAR| CEMAFI, Université de Nice Sophia Antipolis...
( 18 downloads)
Abstract

All statistics and empirical studies relating to the Mediterranean region show the irregular fluctuation of the main macroeconomic aggregates. It is appear that the vulnerability of these countries is largely the result of different range of shocks. Regarding their economic structures, the prospects of growth for Southern Mediterranean countries are largely driven by changes in their external environment. Among the external shocks affecting these countries, we include oil price shocks, terms of trade, the trend of global growth, turmoil in the international financial system, and the crises of international policies (2nd and 3rd war Gulf, event of September 11 ...) and obviously the current global financial crisis. The interest of this work is to determine the various domestic and external shocks affecting the level of economic activity and prices and to identify, later, the main exogenous sources of economic fluctuations in the Southern Mediterranean countries. The sources of fluctuations are determined using a Structural VAR model.

Keywords: Economic Fluctuations, SVAR, Southern Mediterranean
The Determinants of Stock Prices in Pakistan

The Determinants of Stock Prices in Pakistan

Authors: Mehr-un-Nisa| Ph.D Scholar at University of Karachi, Karachi, Pakistan, Mohammad Nishat| Department of Finance and Economics, Institute of Business Ad...
( 28 downloads)
Abstract

Stock Investment is always a risky proposition and investors are reluctant to invest in Stock Market. If they came to know about the exact factors influencing the stock prices, they will invest in stocks confidently. This study examines the empirical relationship between the stock prices, financial fundamentals and macroeconomic factors in Karachi Stock Exchange. By applying the dynamic panel Generalized Method of Moments (GMM) technique on the data of 221 firms during 1995-2006, the analysis attempts to obtain efficient parameter estimates and to check the consistency of the link between stock price behavior, company fundamentals and macroeconomic factors. Several studies have been conducted to identify the factors of stock prices for a variety of countries, and the results have been mixed. It is found that previous behavior of stock prices, company size, previous earnings per share are the most important factors. In addition, macroeconomic indicators like, GDP growth, rate of interest and financial depth have significant relationship with the stock prices. Market to book value, share turnover ratio and inflation can also influence the stock price behavior. The corporate reforms of 2002 are responsible of increase in stock prices from 2002 to 2006. Investors in Pakistan have to decide which stock should be purchased. The results of this study will provide guideline to the investors in stock selection. While taking decisions they should take into account company informations as well as macroeconomic situation of the country simultaneously. The companies can set their policies and strategies in the light of relatively important factors, for business survival and success. The possible impact of macroeconomic factors may help the policy makers while setting monetary and fiscal policies.

Keywords: null
A Dynamic Causality Study between Electricity Consumption and Economic Growth for Global Panel: Evidence from 76 Countries

A Dynamic Causality Study between Electricity Consumption and Economic Growth for Global Panel: Evidence from 76 Countries

Authors: Md. Sharif Hossain| Department of Economic Engineering, Faculty of Economics, Kyushu University, Japan, Chikayoshi Saeki| Department of Economic Engin...
( 20 downloads)
Abstract

This paper empirically examines the dynamic causal relationships between electricity consumption and economic growth for five different panels (namely high income, upper middle income, lower middle income, low income based on World Bank income classification and global) using time series data from 1960 to 2008. Three panel unit root tests results support that both the variables are integrated of order 1 for all panels except low income panel. Only the variable economic growth is integrated of order 1 for low income panel. The Kao and Johansen Fisher panel conintegration tests results support that both the variables are cointegrated for high income, upper middle income and global panels but for lower middle income and low income panels are not cointegrated. Bidirectional causality between economic growth and electricity consumption both in the short-run and long-run is found for high income, upper middle income and global panels from the Granger causality test results. Unidirectional short-run causality is found from economic growth to electricity consumption for lower middle income panel and no causal relationship is found for low income panel. It is found that the long-run elasticity of economic growth with respect to electricity consumption is higher for high income, upper middle income and for global panels indicates that over times higher electricity consumption gives rise to more economic growth in these panels.

Keywords: Dynamic Causal Relationship, Panel Unit Root Test, Panel Cointegration Test, Granger Causality Test
Favorable and Unfavorable Conditions for Innovation: Some Cross Country Evidence

Favorable and Unfavorable Conditions for Innovation: Some Cross Country Evidence

Authors: William R. DiPietro| Professor of Economics Daemen College 4380 Main St. Amherst
( 20 downloads)
Abstract

The paper employs cross country regression analysis to estimate the effect of democracy and income inequality, adjusting for the level of income and other variables, on country innovation. It finds that both of these variables are of consequence for innovation. Different countries innovate at different rates. Some countries are very creative while other countries are not. Innovation is of vital importance to economic activity. The long term health of the economy depends on innovation, as creativity and innovation are the key drivers of economic growth. Understanding the determinants of creativity and innovation is, therefore, a serious endeavor. While it is common to study the reasons for differences in creativity and innovation across firms and countries by knowledge production function inputs such as dollar expenditure on research and development, looking for more fundamental underlying socio-political variables at the country level that may lead to a more favorable or less favorable environmental conditions for innovation is less common. National socio-political country conditions are not the direct determinants of innovation such as those at the firm level, but, rather, they are the behind the scenes forces influencing the development of these direct components. For instance, greater freedom and democracy may create individuals who are more autonomous, independent, and entrepreneurial. If, at the firm level, certain corporate cultural characteristics are the key to innovation, then some country characteristics will provide a more favorable milieu for their evolution and appearance, while others will not. The purpose of this paper is to focus on two socio-political variables, democracy and income inequality, as potential determinants of innovation. In pursuit of this undertaking, the paper is divided into five parts. The first part looks at potential theoretical reasons why democracy and income inequality and a few other country variables may have relevance for innovation. The second section discusses the measures that are employed in the empirical analysis and identifies data sources. The third part shows the outcomes of regression runs on innovation and democracy and on innovation and income inequality adjusting for the level of economic development and for other variables. The final section concludes.

Keywords: Country Innovation, Creativity, Income Inequality, Democracy
Relationship between Working Capital, Operating Cash Flows and Operating Income: Empirical Evidences from Listed Firms in Tehran Stock Exchange

Relationship between Working Capital, Operating Cash Flows and Operating Income: Empirical Evidences from Listed Firms in Tehran Stock Exchange

Authors: Hashem Valipour| Accounting Department, Firouzabad Branch, Islamic Azad University, Firouzabad, Iran, Zakieh Shooshtarian| Accounting Department, Marv...
( 20 downloads)
Abstract

The main purpose of this research is to investigate the relationship between working capital, operating cash flow and operating income, in the companies that listed in Tehran Stock Exchange. Panel analysis is applied to sample of 52 companies during the period 2000-2009. The results show that there is a positive relationship between working capital and operating profit. But there is not meaningful relationship between operating cash flows and working capital.

Keywords: Working Capital, Operating Cash Flows, Operating Profit, Panel Data, Operating Income
Examining CSR Reporting and Economic Crisis a Study of GRI Reporting Companies

Examining CSR Reporting and Economic Crisis a Study of GRI Reporting Companies

Authors: Calderon Huerta Mario Rodolfo| School of Asia Pacific Studies Ritsumeikan Asia Pacific University
( 21 downloads)
Abstract

This paper explores the relationship between CSR Reporting and the last global economic crisis that started in the late half of the year 2007. The sample of the study is composed of companies included in the "GRI Report list 1999-2011", more specifically 2790 companies that published CSR reports during the period 2007-2011. One-way repeated measures ANOVA testing on three factors (Report Type, Application Level and Report Status) revealed that transparency and quality of the reports decreased during the years 2007, 2008 and 2011, years that have been linked with the economic crisis or economic uncertainty. Therefore, this paper supports the need to maintain Ethical and Sustainability standards during economic crisis and concludes that more than a threat, Corporations and Society in general, should approach this as an opportunity period to improve CSR-Reporting, a period in which the need for Ethic behavior and Corporate Social Responsibility is greater.

Keywords: CSR Reports, Economic Crisis, Disclosure, Transparency, Social commitments, Sustainability Reporting Framework
Cash Management Practices of Small Business Owners in the Cape Coast Metropolitan Area of Ghana

Cash Management Practices of Small Business Owners in the Cape Coast Metropolitan Area of Ghana

Authors: John K. Mbroh| Head, Department of Accountancy Studies, Cape Coast Polytechnic, Ghana
( 20 downloads)
Abstract

The burden of cash management has become a topical issue in small businesses. To gain information on current practice, this paper examines survey evidence on cash management practices of two hundred and two small business owners (SBOs) in the Cape Coast Metropolitan Area of Ghana. It is evident in the study that majority of the SBOs studied either do not understand the attributes or the importance of cash management and as a result did not practice any formal system of the concept. The informal systems of cash management mainly practiced were found to be susceptible to cash fraud and other business growth difficulties. Some associated cash management problems have been highlighted and solutions proffered for ameliorating the situation. The paper further suggests that future research and policy directions consider gender differences and attributes as well as some industry peculiarities to the present rear growth in this important business unit.

Keywords: Small Business Owners (SBOs), Small Businesses (SBs), Cape Coast Metropolitan Area (CCMA), Cash Cycle and Cash Management
Government Deficits and Corporate Liquidity

Government Deficits and Corporate Liquidity

Authors: Naiwei Chen| Department of Finance, College of Management, National Chung Cheng University, Chiayi, Taiwan, Siting Yo| Operation Department, China Lif...
( 19 downloads)
Abstract

This study examines the relationship between government deficit and corporate liquidity (cash holdings). Using data of nonfinancial firms in Taiwan from 1981 to 2009, this study finds that corporate liquidity is lower when government deficit is higher. In addition, corporate liquidity is related with other macroeconomic conditions, such as inflation, short-term interest rate, and economic growth. More precisely, results indicate that inflation and interest rates have a negative impact on corporate liquidity that is aggravated when government deficit is higher. Economic growth has a positive impact on corporate liquidity, and such positive impact is weakened when government deficit is higher.

Keywords: Government deficit, Corporate liquidity, Cash Holdings

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