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

Factors Affecting the Nominal Exchange Rate of Pakistan: An Econometric Investigation (1982-2008)

Factors Affecting the Nominal Exchange Rate of Pakistan: An Econometric Investigation (1982-2008)

Authors: Naeem Ur Rehman Khattak| Faculty of Social Sciences, University of Peshawar, Pakistan, Muhammad Tariq| Department of Economics, University of Peshawar...
( 36 downloads)
Abstract

Which macroeconomic factors determine the nominal exchange rate of Pak-rupee against US dollar during the period 1982-2008? This issue has been investigated in this paper by using Ordinary Least Squares and Johansen’s Cointegration techniques. The results show that both monetary and real factors i.e. money supply, trade balance, foreign exchange reserves, inflation and interest rate have long run relationship with the exchange rate of Pak-rupee. However, the granger causality test results show that the relationship between most of the macroeconomic variables and nominal exchange rate bi-directional.

Keywords: Nominal Exchange Rate, Co integration, Granger Causality test
Exports and Nigerian’s Economic Growth: a Co-Integration Analysis

Exports and Nigerian’s Economic Growth: a Co-Integration Analysis

Authors: Udude Celina C| Department of Economics Ebonyi state University Abakaliki, Okulegu Bethran Enyim| Department of Economics Ebonyi state University Abak...
( 34 downloads)
Abstract

This research work employed the use of cointegration analysis in the study of export and economic growth in Nigeria. It was embarked on, in order to determine whether there is bi-directional relationship between exports and economic growth in Nigeria. More so, it tries to evaluate significant impact of exports on the economic growth in Nigeria. On the application of advanced econometric techniques like Augumented Dickey Fuller and Phillips Perron Unit Root Test, Johansen Cointegration Test and Error Correction Mechanism, the following information surfaced: - There existed a long-run relationship with economic growth and export in Nigeria. None of the variables were stationary at zero level. This means they all have unit roots. Having integrated the short run dynamics and long run equilibrium, Imports (IMP) and Exchange Rate were positively correlated with GDP while Exports (EXC) was negatively related with GDP. The short-run dynamics adjusts to the long-run equilibrium at the rate of 0.866% per annum. In the bid to achieve economic growth, it was recommended that there should be diversification of export commodities, infrastructure development, and maintenance of stable exchange rate and operationalization of Export Processing Zones.

Keywords: Exports and Nigerian‟s Economic growtha co-integration analysis, Imports and exchange rate
Microfinance: A Time to Deliberate

Microfinance: A Time to Deliberate

Authors: Ayi Gavriel Ayayi| Associate Professor of Financial Economics Département des sciences de la gestion Université du Québec à Trois Rivières 3351, boul....
( 37 downloads)
Abstract

Microfinance promises to reduce poverty through income-generating activities for the underprivileged segment of the population that has been excluded from the main banking system. To achieve that goal, microfinance institutions have to become socially-financially ???, sustainable businesses: simply put, reconcile their conflicting objectives. To that end, this special issue contains empirical contributions that deal with the impact evaluation of microfinance institutions on both a household and business level; financial sustainability and clients default risk.

Keywords: Microfinance, Deliberate
Dangers in Mismanaging the Factors Affecting the Operational Self-Sustainability (OSS) of Indian Microfinance Institutions (MFIs)—An Exploration into Indian Microfinance Crisis

Dangers in Mismanaging the Factors Affecting the Operational Self-Sustainability (OSS) of Indian Microfinance Institutions (MFIs)—An Exploration into Indian Microfinance Crisis

Authors: M Nadiya| Doctoral Student at School of Management Studies, National Institute of Technology, Calicut, Kerala, India, Francisco Olivares-Polanco| Seni...
( 36 downloads)
Abstract

This paper identifies the factors affecting the operational self-sustainability (OSS) of Indian Microfinance Institutions (MFIs) using multiple regression analysis. It shows revenue generation factor, cost efficiency factor and growth factor to have a positive influence on the OSS of Indian MFIs. Adjusted impairment loan loss allowance ratio, a portfolio risk factor and average loan size per borrower, a development factor, are seen to have a negative influence on OSS of Indian MFIs. The results thus infer five significant factors that Indian MFI managers must concentrate on to enhance the OSS of their organizations. The authors then discuss how mismanaging these five factors can deviate an MFI from its social goal of poverty alleviation. The crisis in Indian microfinance industry is explored to unveil the dangers involved in mismanagement of these factors. The paper concludes by stating that it is imperative for Indian MFI managers to introspect about their lending and recovery practices, so as to ensure that they manage the factors affecting their OSS, without exploiting the poor clientele.

Keywords: Microfinance, Sustainability, Mismanagement, Microfinance Crisis, India
Effects of Microfinance on Micro and Small Enterprises (MSEs) Growth in Nigeria

Effects of Microfinance on Micro and Small Enterprises (MSEs) Growth in Nigeria

Authors: Abiola Babajide Ph.D| Department of Banking and Finance, Covenant University, Ota P.M.B 1023, Ota, Ogun State, Nigeria
( 38 downloads)
Abstract

This paper investigates the effects of microfinance on micro and small business growth in Nigeria. The objectives are: one, to examine the effects of different loan administration practices (in terms of loan size and tenor) on small business growth criteria. Second, to examine the ability of Microfinance-Banks (MFBs) (given its loan-size and rates of interest charged) towards transforming micro-businesses to formal small scale enterprises. The paper employed panel data and multiple regression analysis to analyze a survey of 502 randomly selected enterprises finance by microfinance banks in Nigeria. We find strong evidence that access to microfinance does not enhance growth of micro and small enterprises in Nigeria. However, other firm level characteristics such as business size and business location, are found to have positive effect on enterprise growth. The paper recommends a recapitalization of the Microfinance banks to enhance their capacity to support small business growth and expansion.

Keywords: Small Firms, Micro firms, Entrepreneurship, Microfinance, Regression Analysis, Nigeria
Inside Productivity of Microcredit in Bangladesh: A Surgical Analysis

Inside Productivity of Microcredit in Bangladesh: A Surgical Analysis

Authors: Md. Mahmudul Alam| Institute for Environment and Development (LESTARI) National University of Malaysia (UKM), Malaysia, and Research Fellow, Integrate...
( 37 downloads)
Abstract

Microcredit typically refers to petty collateral-free credits given to groups of poor members in the society for their socioeconomic emancipation. It is claimed to be an effective tool for enhancing income of the poor primarily through creation of self-employment opportunities for them in a variety of small economic activities. However, in this survey of microcredit borrowers in Bangladesh it is found that when self-employed family labor is paid wages at market rate, under the framework of economic-profit counting, economic productivity of credit for about 48 % of the borrowers is not enough to support payment of any interest. Similarly its social productivity in terms of job creation and women’s empowerment at family level is also found to be low and marginal. Even then about 90% of the borrowers prefer taking microcredit from microfinance institutions (MFIs) even at exorbitantly high interest rate, ostensibly to avoid compromising their socio-political rights and potentials at the hands of the local moneylenders or friends and relatives if credits are obtained from them. They see microcredit as a means of socio-political empowerment of the economically weak and underprivileged members of the society. As such they regard it as a more credible social than economic program.

Keywords: Grameen Bank, microcredit, microenterprise, subsistent, poverty alleviation, economic-profit counting
Economics and Business Department at Colorado College, 14 East Cache la Poudre, Colorado Springs

Economics and Business Department at Colorado College, 14 East Cache la Poudre, Colorado Springs

Authors: Stephen W. Polk| Economics and Business Department at Colorado College, 14 East Cache la Poudre, Colorado Springs, Daniel K.N. Johnson| Economics and...
( 40 downloads)
Abstract

This paper aims to evaluate the impact of a microlending program on ameliorating measured poverty within its client population, with the aim of improving that impact. We analyze over 18,000 women micro-finance clients of the Negros Women for Tomorrow Foundation (NWTF), a database using the Progress out of Poverty (PPI) Scorecard as a measure of poverty. Analysis using both OLS and quantile multivariate regression models shows how observable borrower attributes affect the ability of clients to reduce their measured poverty. Loan size, duration, and the economic activity supported all have strongly identifiable effects. Moreover, estimates suggest which among the poor are receiving the greatest effective help by the program. Results offer specific advice to the NWTF and other micro-lenders: impact is greatest with fewer, larger loans in particular economic sectors (sari-sari, service and trade) but require patience as each additional year increases the client’s average change in poverty score.

Keywords: micro-finance, Grameen, poverty, quantile regression
A Quantile Regression Analysis of Micro-lending’s Poverty Impact

A Quantile Regression Analysis of Micro-lending’s Poverty Impact

Authors: Stephen W. Polk| Economics and Business Department at Colorado College, 14 East Cache la Poudre, Colorado Springs, Daniel K.N. Johnson| Economics and...
( 36 downloads)
Abstract

This paper aims to evaluate the impact of a microlending program on ameliorating measured poverty within its client population, with the aim of improving that impact. We analyze over 18,000 women micro-finance clients of the Negros Women for Tomorrow Foundation (NWTF), a database using the Progress out of Poverty (PPI) Scorecard as a measure of poverty. Analysis using both OLS and quantile multivariate regression models shows how observable borrower attributes affect the ability of clients to reduce their measured poverty. Loan size, duration, and the economic activity supported all have strongly identifiable effects. Moreover, estimates suggest which among the poor are receiving the greatest effective help by the program. Results offer specific advice to the NWTF and other micro-lenders: impact is greatest with fewer, larger loans in particular economic sectors (sari-sari, service and trade) but require patience as each additional year increases the client’s average change in poverty score.

Keywords: micro-finance, Grameen, poverty, quantile regression
Good Money’ Chasing ‘Bad Money’: Implications for MFIs Management and Governance in Ghana

Good Money’ Chasing ‘Bad Money’: Implications for MFIs Management and Governance in Ghana

Authors: James Atta Peprah| Department of Economics University of Cape Coast Cape Coast Ghana
( 40 downloads)
Abstract

Despite the conviction that microfinance is able to reduce poverty among low income groups, one challenge that still remains in the sector is high default rate.

Keywords: MFIs, good money, bad money, management, board
THE TESTING OF HALL’S PERMANENT INCOME HYPOTHESIS: A CASE STUDY OF PAKISTAN

THE TESTING OF HALL’S PERMANENT INCOME HYPOTHESIS: A CASE STUDY OF PAKISTAN

Authors: Khalid Khan| Lecturer, University of Agriculture, Water and Marine Sciences, (LUAWMS), Uthal, Balochistan, Manzoor H Memon Che| Economist, Social Poli...
( 42 downloads)
Abstract

The objective of this study is to test the Hall’s permanent income hypothesis for Pakistan using annual data from 1992 to 2010. The basic model of permanent income hypothesis (PIH) showed the validity of absolute income hypothesis (AIH) while the Campbell and Mankiw (1990) consumption model suggested that the proportion of forward looking consumers in total population is 32 percent and the remaining consumers are backward looking. Therefore in Pakistan, there is larger fluctuation in per capita income and small opportunity for consumption smoothing.

Keywords: Permanent Income Hypothesis, Absolute Income Hypothesis, Consumption Smoothing
SAUDI ARABIAN COMMERCIAL BANKS’ MARKET-RISK SENSITIVITY: A VIEW THROUGH ROLLING SUB- SAMPLES

SAUDI ARABIAN COMMERCIAL BANKS’ MARKET-RISK SENSITIVITY: A VIEW THROUGH ROLLING SUB- SAMPLES

Authors: Bruce Q. Budd| Associate Professor of Finance, College of Business, Alfaisal University, College of Business Alfaisal University Takhassusi Street Riy...
( 66 downloads)
Abstract

Using data collected from the Saudi Arabian TadawulStock Exchange, this paper analyses 11 publically listed bank risk-return relationships during 2008-2011. The contribution of this paper provides a more refined technique, a rolling beta, to accurately capture daily valuation swings caused by market-moving events over time. Alpha values are calculated using the CAPM enabling more dynamic risk-return valuations to emerge. These valuations identified three key phases of varying bank stock market activity and sector market valuations previously unrecognized when using the single linear beta value.These results suggest that in general, despite the relative instability within and between Saudi banks during the turbulent GFC, the contribution of SAMA strict regulations (and the banks themselves) ensured a less tempestuous performance within the Saudi banking sector overall, compared to the devastating impact that shook, and continues to shake, the banking sectors of the industrialized countries today. In addition, this analysis surprisingly reveals thatinvestment opportunities are presently re-emerging in the Saudi banks contrary to present global banking happenings and international contagion amongst other foreign countries’ banking sectors.

Keywords: Alpha, Beta, CAPM, Rolling regression, Tadawul
ON THE DETERMINANTS OF DERIVATIVE HEDGING BY INSURANCE COMPANIES: EVIDENCE FROM TAIWAN

ON THE DETERMINANTS OF DERIVATIVE HEDGING BY INSURANCE COMPANIES: EVIDENCE FROM TAIWAN

Authors: Yung-Ming Shiu| Professor, Department of Risk Management and Insurance, Research Fellow, Risk and Insurance Research Center, College of Commerce Natio...
( 36 downloads)
Abstract

There has been considerable growth in the derivatives holdings of Taiwanese insurance companies in recent years and this study examines the determinants of derivative use for both life and non-life companies. The determinants are different in the two insurance sectors. For the life sector, we find that large firms and firms exposed to either foreign exchange risk or interest rate risk (due to the duration of liabilities being greater than that of the assets) are more likely to participate in derivative hedging activities. In the case of foreign exchange risk, the greater the exposure, the greater the derivative holdings (as a proportion of the total assets of the firm). For the non-life sector, exposure to interest rate risk (as measured by net interest margin) and foreign exchange risk have a significant influence on the derivative participation decision. The level of derivative holdings is then positively related to foreign exchange exposure and negatively related to the level of reinsurance.

Keywords: Derivative use, Hedging, Insurance companies
FUNDING CRISIS IN HIGHER EDUCATION INSTITUTIONS: RATIONALE FOR CHANGE

FUNDING CRISIS IN HIGHER EDUCATION INSTITUTIONS: RATIONALE FOR CHANGE

Authors: Abd Rahman Ahmad| Faculty of Technology Management and Business, Universiti Tun Hussein Onn Malaysia, 86400 BatuPahat, Johor, Malaysia, Alan Farley| S...
( 41 downloads)
Abstract

An important priority of public policy is to ensure that higher education institutions contribute to economic growth and social progress as a whole, especially in the context of today’s globalised markets and knowledge economy. It is crucial for any nation to have a good education system and strategic planning to improve learning outcomes, access to facilities, and efficient use of resources. This paper explained the rationale for changein funding higher education with comparison made based on previous literature in developed and developing countries.

Keywords: Funding, Higher Education, Performance-Based Funding, Strategic Planning
INTELLECTUAL CAPITAL AND FIRM PERFORMANCE OF COMMERCIAL BANKS IN MALAYSIA

INTELLECTUAL CAPITAL AND FIRM PERFORMANCE OF COMMERCIAL BANKS IN MALAYSIA

Authors: Malina Hanum Mohd Kamal| Faculty of Hotel and Tourism Management, Universiti Teknologi MARA (UiTM) Terengganu, 23000 Dungun, Terengganu, Malaysia, Ros...
( 42 downloads)
Abstract

Intellectual capital is an important element of the theory explaining firm performance. The purpose of this paper is to determine the relationship between the level of intellectual capital efficiency in terms of Human Capital, Capital Employed and Structural Capital (VAIC) with the commercial banks performance in Malaysia from the traditional accounting based perspective that comprises of ROA and ROE. Overall results revealed the relationship between intellectual capitals with performance of 18 commercial banks in Malaysia. Additionally, the results showed significance impact of intellectual capital variables namely Value Added Capital Employed (VACA), Value Added Human Capital (VAHU) towards bank performance. It is suggested that intellectual capital do matters and should be linked to firm productivity. The study implies that the importance of intellectual capital should be emphasized not only to the commercial banks but also to the emerging market of Islamic banks in Malaysia or any other industries for future research.<2"/> Acknowlegdements.

Keywords: Intellectual Capital, Firm Performance, Value Added Intellectual Coefficient, Commercial Banks, Malaysia
RELATIONSHIP BETWEEN TOURISM AND ECONOMIC GROWTH: A PANEL GRANGER CAUSALITY APPROACH

RELATIONSHIP BETWEEN TOURISM AND ECONOMIC GROWTH: A PANEL GRANGER CAUSALITY APPROACH

Authors: E. Çağlayan| Department of Econometrics, Faculty of Economics, Marmara University, Goztepe-Kadikoy, Istanbul (Turkey), N. Şak| Department of Econometr...
( 44 downloads)
Abstract

This paper investigated the causal relationship between tourism revenue and gross domestic product (GDP) using the panel data of 135 countries for the period 1995–2008. For this purpose, Panel Granger causality analysis was applied to 11 groups of countries. This classification was created as America (30 countries), Asia (34 countries), Europe (37 countries), East Asia (13 countries), South Asia (6 countries), Central Asia (5 countries), Latin America & Caribbean (28 countries), Oceania (7 countries), Middle East & North Africa (11 countries), Sub Saharan Africa (24 countries) and the world (135 countries). Results indicated bidirectional causality in Europe between tourism revenue (TR) and gross domestic product (GDP). Findings showed that there is a unidirectional causality in America, Latin America & Caribbean and World from GDP to tourism revenue. While in case of East Asia, South Asia and Oceania the reverse direction of causality was found from tourism revenue to GDP. No causal relationship was found in Asia, Middle East and North Africa, Central Asia and Sub Saharan Africa.

Keywords: Tourism Income, Economic Growth, Panel Unit Root, Panel Causality

About Europub

EuroPub is a comprehensive, multipurpose database covering scholarly literature, with indexed records from active, authoritative journals, and indexes articles from journals all over the world. The result is an exhaustive database that assists research in every field. Easy access to a vast database at one place, reduces searching and data reviewing time considerably and helps authors in preparing new articles to a great extent. EuroPub aims at increasing the visibility of open access scholarly journals, thereby promoting their increased usage and impact.