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
  • Time from submission to publication: 8 weeks

Publication charges

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

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

UNEMPLOYMENT, INCOME INEQUALİTY AND POVERTY: THE HALLMARKS OF THE AFRİCA’S LARGEST AND STRONGEST ECONOMY; NİGERİA

UNEMPLOYMENT, INCOME INEQUALİTY AND POVERTY: THE HALLMARKS OF THE AFRİCA’S LARGEST AND STRONGEST ECONOMY; NİGERİA

Authors: Aliyu A. Kware| Department of History and International Studies Federal University, Birnin Kebbi, Nigeria
Year: 2015, Volume: 5, Number: 11
(39 downloads)
Abstract

Nigeria indeed has one of the world?s highest economic growth rates especially from the opening years of the current century. The economy has been one of the vibrant ones as a result of the abundance of human and natural resources in the country, including agricultural and petroleum resources. On the contrary, Nigeria signifies a paradox of the above feats. Unemployment, income inequality and poverty in Nigeria, remain remarkably high despite impressive economic growth. High unemployment rates make personal incomes extraordinary divergent. Income inequality in the country has been worsening ever since as a result of differential access to infrastructure and amenities. Oil wealth has always been unequally distributed in the country favouring urban areas at the expense of the rural areas. Consequent upon these, poverty has been on the increase. As at 2014 the poverty level in Nigeria stood at 63 percent of the population living below $1 a day. The main reason for this pathetic situation has been corruption and the consequences have been very costly to the nation. Peace has eluded the country with insecurity almost everywhere in the country at the expense of the sustainable social and economic development desired by the citizens of the country. This paper intends to trace the history with a view to explaining the why and how of the problem in the most populous and resources endowed nation of Africa, i.e. Nigeria.

Keywords: Nigeria, Agriculture, Petroleum oil, Unemployment, Inequality, Poverty
DETERMINANTS OF LIFE EXPECTANCY: A PANEL DATA APPROACH

DETERMINANTS OF LIFE EXPECTANCY: A PANEL DATA APPROACH

Authors: Abdalali Monsef*| Associate Professor, Payame Noor University, Department of economics, Tehran, Iran, Abolfazl Shahmohammadi Mehrjardi| Master of Econ...
Year: 2015, Volume: 5, Number: 11
(42 downloads)
Abstract

This study is concerned with understanding the factors that affect the life expectancy in 136 countries for the period 2002?2010. According to the life expectancy literature, the determinants of life expectancy can be classified into social, economic and environmental factors. In this respect, the panel data method is employed to compute the relationship between life expectancy and selected economic, social and environmental factors. The results of this study suggest that unemployment and inflation are the main economic factors that influence the life expectancy negatively. But, the gross capital formation and gross national income and affect the life expectancy positively as well. The urbanity seems to be the main socio-environmental cause for mortality. According these results, this study presents a number of recommendations in order to improvement of life expectancy.

Keywords: Economic factors, Environmental factors, Health status, Life expectancy, Social factors, Panel data
DEPENDENCE OF REAL ESTATE AND EQUITY MARKETS IN CHINA WITH THE APPLICATION OF COPULA

DEPENDENCE OF REAL ESTATE AND EQUITY MARKETS IN CHINA WITH THE APPLICATION OF COPULA

Authors: Iou-Ming Wang| Assistant Professor, Department of International Business, Providence University, Taiwan, Ming Fang| Department of International Busine...
Year: 2015, Volume: 5, Number: 12
(38 downloads)
Abstract

This paper examines the dynamic dependence and extreme co-movements between real estate and equity markets in China. We illustrate these ideas in simple empirical settings, implementing the relatively techniques from copulas. When comparing the real estate indices and equity market indices in China, our results show that series in both Shanghai Exchange and Shenzhen Exchange exhibit tail dependence with their respective equity indices. Time-varying SJC copula is the optimal dependence structure while illustrate the extreme co-movement between real estate and equity markets in China.

Keywords: Copula, Dependence structure, Equity, Extreme co-movement, Real estate, Tail dependence
RMB UNDERVALUATION AND APPRECIATION

RMB UNDERVALUATION AND APPRECIATION

Authors: Zhibai Zhang*| School of Finance, Nanjing University of Finance and Economics, China, Langnan Chen| Lingnan (University) College and Institute for Eco...
Year: 2015, Volume: 5, Number: 12
(40 downloads)
Abstract

The bilateral real exchange rate between Chinese renminbi (RMB) and the US dollar is studied. The panel Penn effect model shows that the RMB was undervalued after 1994 when China reformed its exchange rate system. It was undervalued by 64% in 2013. RMB was undervalued not only relative to the US dollar, but also relative to the currencies of all other developing and emerging countries. An examination of the appreciation of 17 currencies of the countries and areas that experienced the Penn effect shows that the RMB should appreciate at an annual speed of 3.4%. At this rate, the RMB misalignment in 2013 will be reduced by half by 2020. In the future, if the interests of both China and the US are considered, RMB appreciation should be realized totally from the nominal exchange rate, not partly from the nominal exchange rate and partly from the relative price level as it did in the past.

Keywords: Chinese renminbi, The US dollar, Real exchange rate, Penn effect, Undervaluation, Appreciation
IMPACT OF EXCHANGE RATE IN THE RUN-UP TO EU ACCESSION: AN EMPIRICAL ANALYSIS OF REPUBLIC OF MACEDONIA

IMPACT OF EXCHANGE RATE IN THE RUN-UP TO EU ACCESSION: AN EMPIRICAL ANALYSIS OF REPUBLIC OF MACEDONIA

Authors: Tatjana Boshkov*| Assistant Professor at Faculty of Tourism and Business Logistics, University “GoceDelcev”, Stip, Macedonia, Gligor Bishev| Universit...
Year: 2015, Volume: 5, Number: 12
(39 downloads)
Abstract

Because of the fact that South-eastern European countries rely mainly on exchange rate anchors to reduce inflation, the appreciation of the real exchange rate among countries in the region is significant, and it is slightly lower when it?s compared with the EU member states. As a result, these countries suffer from loss of competitiveness. This can be clearly seen from the movements of the deficit on their current account, which is important in all these countries. Using the exchange rate as anchor for inflationary expectations, on long run it has been identified as effective, producing a low and stable inflation rates. Therefore, Macedonia needs to address important challenges through determined implementation of structural reforms to cope with competitive pressures and market forces within the EU. Progress with structural reform scan help for macroeconomic stability, for example, by reducing the structural external deficits. Also, it helps nominal convergence, as the productivity realizes the improvement of competitive ness and helps disinflation by maintaining low unit cost.In terms of macroeconomic convergence, EU membership requires convergence of the Macedonian economy with that of the EU in realistic conditions, indicating income per capita and economic structure, and in nominal terms, meaning convergence of prices, inflation and interest rates. In this paper, we focus on impact of exchange rate in small and open economy like Macedonia, to be seen in the context of continued integration of supply chains. Further we underline that membership into European Union can improve the situation of Macedonia only if the access to a large extent makes Macedonia location from which foreign investors can serve to the EU market,meaning that the domestic industry with the help of FDI must take the necessary change of its output. Also with the support of estimations, in this paper, we showed that in a small and open economy, such as Macedonia, using real exchange rate as an instrument could be realized the opportunity for growth of export performances, increasing aggregate demand and increasing economic growth thus speeding the convergence process to EU.

Keywords: Convergence, Exchange rate, EU accession, Macedonia, Export, Growth
THE IMPACT OF TRANSFERRING MILITARY CONFRONTATION TO ECONOMIC COOPERATION FOR ECONOMIC GROWTH - ASEAN PANEL ANALYSIS

THE IMPACT OF TRANSFERRING MILITARY CONFRONTATION TO ECONOMIC COOPERATION FOR ECONOMIC GROWTH - ASEAN PANEL ANALYSIS

Authors: Mon-Li Lin*| Associate Professor, Department of International Trade, Takming University of Science and Technology, Taiwan, R. O.C., Tze-Wei Fu| Associ...
Year: 2015, Volume: 5, Number: 12
(40 downloads)
Abstract

The Association of Southeast Asian Nations (ASEAN) is one of the three major economic regions besides the North American Free Trade Area (NAFTA) and the European Union (EU). In addition to regional economic integration, the formation of ASEAN has the special characteristics of transferring force confrontation to economic cooperation. The impacts of defense spending on economic growth of six ASEAN countries are measured through panel data. Results show that reduction of defense spending significantly increases economic growth which means that the change from military opposition to economic cooperation in ASEAN member countries helps the economic development of these six countries.

Keywords: ASEAN, Military expenditure, Economic growth, Panel data, Fixed effect, Random effect
THE DETERMINANTS OF FDI IN TUNISIA: AN EMPIRICAL STUDY THROUGH A GRAVITY MODEL

THE DETERMINANTS OF FDI IN TUNISIA: AN EMPIRICAL STUDY THROUGH A GRAVITY MODEL

Authors: Souad BANNOUR Ep SFAR*| Doctor of Economics, University of Nice Sophia Antipolis, Faculty of Economic Sciences and Management of Sousse University, Fr...
Year: 2015, Volume: 5, Number: 12
(38 downloads)
Abstract

In order to analyze the determinants of FDI, several empirical studies have been done by applying different econometric models. The purpose of this article is to identify the determinants of FDI in Tunisia through a gravity model. The results of the econometric estimation show that the main factors of attractiveness in Tunisia in the period between 1980 and 2013 are: the importance of the size of the host country market, trade openness, good infrastructure, geographic proximity, political stability and skilled human capital.

Keywords: Attractiveness of the area, FDI determinants, Tunisia, Gravity model, Tunisian economy, Factors of attractiveness
EFFECTS OF IMPUTATION RATIO CHANGE ON OPEN ECONOMY IN THE INTEGRATED INCOME TAX SYSTEM

EFFECTS OF IMPUTATION RATIO CHANGE ON OPEN ECONOMY IN THE INTEGRATED INCOME TAX SYSTEM

Authors: Chung-Fu Lai*| Department of Applied Economics, Fo Guang University, Yilan County, Taiwan, Yin-Rong Chang| Department of Applied Economics, Fo Guang U...
Year: 2016, Volume: 6, Number: 1
(37 downloads)
Abstract

In this paper, we investigate a representative individual who is both a consumer and a producer, and when the personal income tax of can be deducted from the paid corporate tax, how macroeconomic variables (e.g. consumption, output, price index, exchange rate, and terms of trade) are affected by change in imputation ratio with a New Open Economy Macroeconomics (NOEM) model. We found that when the imputation ratio reduces, price index will rise, consumption and output levels will fall, the exchange rate will remain unchanged, and the country size will determine the effect on terms of trade.

Keywords: Integrated income tax system, Imputation ratio, Micro-foundations, Steady state, Log-Linearization, New open economy macroeconomics
DO CORPORATE GOVERNANCE AND SOCIAL PERFORMANCE DIFFER BETWEEN FAMILY-OWNED AND NON-FAMILY-OWNED BUSINESSES IN TAIWAN-LISTED CSR COMPANIES?

DO CORPORATE GOVERNANCE AND SOCIAL PERFORMANCE DIFFER BETWEEN FAMILY-OWNED AND NON-FAMILY-OWNED BUSINESSES IN TAIWAN-LISTED CSR COMPANIES?

Authors: Wang Ling| Department of Finance, Providence University, Taiwan Boulevard, Taichung City, Taiwan, Ling-Yu Jhou| Department of Finance, Providence Univ...
Year: 2016, Volume: 6, Number: 1
(39 downloads)
Abstract

The objective of this analysis into examines the social performance and corporate governance differences between family-owned firms and non-family-owned firms, along with the impact of corporate governance variables. The findings herein present that non-family-owned firms ?CSR (corporate social responsibility) affect company performance, but that of family-owned firms does not. We show that duality to ROA is positively significant in family firms, meaning that it is very convenient to conduct polity to do whatever one wants to do to help a firm create more profit and improve ROA when the leader of a family firm is also the company chairman same as the chair-man. On the other hand, in a non-family-owned firm, board size and gender are negatively significant to firm performance. High CEO compensation encourages managers to intensively target high performance in order to get more profit for the firm.

Keywords: Social performance, Corporate governance, Family own firm, Non-family own firm, CSR
THE CONSUMER LOAN’S PAYMENT DEFAULT PREDICTIVE MODEL: AN APPLICATION IN A TUNISIAN COMMERCIAL BANK

THE CONSUMER LOAN’S PAYMENT DEFAULT PREDICTIVE MODEL: AN APPLICATION IN A TUNISIAN COMMERCIAL BANK

Authors: Lobna Abid*| University of Sfax, Department of Economic Development, Faculty of Economics and Management of Sfax, Tunisia, Afif Masmoudi| Department o...
Year: 2016, Volume: 6, Number: 1
(48 downloads)
Abstract

For the alarming growth in consumer credit in recent years, consumer credit scoring is the term used to describe methods of classifying credits? applicants as `good? and `bad? risk classes.. In the current paper, we use the logistic regression as well as the discriminant analysis in order to develop predictive models allowing to distinguish between ?good? and ?bad? borrowers. The data have been collected from a commercial Tunisian bank over a 3-year period, from 2010 to 2012. These data consist of four selected and ordered variables. By comparing the respective performances of the Logistic Regression (LR) and the Discriminant Analysis (DA), we notice that the LR model yields a 89% good classification rate in predicting customer types and then, a significantly low error rate (11%), as compared with the DA approach (where the good classification rate is only equal to 68.49%, leading to a significantly high error rate, i.e. 31.51%).

Keywords: Consumer credit, Credit risk, Logistic regression, Discriminant analysis, Tunisian commercial bank, credit scoring
MICROLOANS AND AGRICULTURAL SECTOR INCOMES IN DEVELOPING COUNTRIES: AN EMPIRICAL STUDY OF THE PRU DISTRICT IN GHANA

MICROLOANS AND AGRICULTURAL SECTOR INCOMES IN DEVELOPING COUNTRIES: AN EMPIRICAL STUDY OF THE PRU DISTRICT IN GHANA

Authors: Aminu Sulemana*| School of Earth and Environment, University of Leeds, United Kingdom, Romanus D. Dinye| Centre for Settlements Studies, Kwame Nkrumah...
Year: 2016, Volume: 6, Number: 1
(40 downloads)
Abstract

The agricultural sector of developing countries continues to contribute significantly to Gross Domestic Product. However, majority of actors in the sector remain low income earners and inequality exacerbates. Several interventions have been implemented including providing microcredit to farmers. However, the results of such interventions remain contested as the outcomes have been a mixed one: positive and negative results. This paper sought to evaluate microcredit impact on incomes within the agricultural sector of the Pru District of Ghana. A case study and quasi-experimental methods were employed. Data was collected from 96 crop farmers and 60 fishermen using questionnaires. It was revealed that microcredit has a positive relationship with incomes and aids in moderating income disparity amongst actors.

Keywords: Microloan, Income, Inequality, Agricultural, Developing, Pru
CORPORATE FAILURE PREDICTION MODELS FOR ADVANCED RESEARCH IN CHINA: IDENTIFYING THE OPTIMAL CUT OFF POINT

CORPORATE FAILURE PREDICTION MODELS FOR ADVANCED RESEARCH IN CHINA: IDENTIFYING THE OPTIMAL CUT OFF POINT

Authors: Zhen Jia Liu*| PHD at School of Business ,Changzhou University, Changzhou City, Jiangsu Providence, China, Yi Shu Wang| Associate Professor at School...
Year: 2016, Volume: 6, Number: 1
(42 downloads)
Abstract

The rapid growth of the Chinese economy has resulted in Chinese listed companies entering numerous global supply chains, and thereby contributing to the globalization of economies. Accurately predicting corporate distress is a crucial concern for enterprises, managers, investors, creditors, and supervisors. In this study, data from the 2003-2013 (excluding 2008) was analyzed, and a logistic model was applied to analyze critical factors. We developed Special Treatment (ST) model to measure distress of companies listed in China. The results indicate that the optimal cut-off point (one, two, three and fourth quarters before a failure), and the debt ratios (one quarter before a failure) or unadjusted economic value added (two, three and fourth quarters before a failure) is superior in predicting corporate failure in China.

Keywords: Corporate failure prediction, China, Cut off point, Economic value added, Special treatment, Distress
IMPACT OF THE QUALITY OF BANKING SERVICES FOR PLASTIC, ELECTRONIC MAGNETIC CARDS ON CUSTOMER'S SATISFACTION AND HIS FUTURE–PURCHASING BEHAVIOR: A PRACTICAL STUDY ON A NUMBER OF COMMERCIAL BANK CUSTOMERS IN AMMAN

IMPACT OF THE QUALITY OF BANKING SERVICES FOR PLASTIC, ELECTRONIC MAGNETIC CARDS ON CUSTOMER'S SATISFACTION AND HIS FUTURE–PURCHASING BEHAVIOR: A PRACTICAL STUDY ON A NUMBER OF COMMERCIAL BANK CUSTOMERS IN AMMAN

Authors: Amjad Qwader| Tafila Technical University-College of Business, Jordan
Year: 2016, Volume: 6, Number: 2
(62 downloads)
Abstract

This study aimed at identifying the scope of the influence of the quality of banking services for the plastic, electronic, magnetic cards on customer?s satisfaction and his future-purchasing behaviour. To achieve the objectives of the present paper, the researcher conducted a field study on a number of Jordanian commercial acting Banks in Amman. The study concluded that there is an incorporeal relationship between the quality of the plastic, Electronic magnetic cards with domains of confidentiality, quick-responses, and competence and customer?s level of satisfaction, where the coefficient variable scored 0.63. Also, the study concluded that there is another incorporeal relationship between the quality of the plastic, Electronic magnetic cards with domains of confidentiality, quick-responses, and competence and the customer?s future purchasing behavior with a coefficient variable of 0.52. Eventually, the study had a set of recommendations. These are: The necessity to conduct more related studies in the future, especially those related to the concept of taking customers into consideration, which is based on studying the financial and credit-card needs and desires in a way these desires and needs could be achieved, thus urging customers to adopt these services in the future.

Keywords: Banking services, Quality of plastic, Electronic magnetic cards, Customer's satisfactions, Customer's future-purchasing behavior
IMPACT OF POLITICAL INSTABILITY AND FOREIGN DIRECT INVESTMENT ON ECONOMIC DEVELOPMENT IN PAKISTAN

IMPACT OF POLITICAL INSTABILITY AND FOREIGN DIRECT INVESTMENT ON ECONOMIC DEVELOPMENT IN PAKISTAN

Authors: Kulsoom Rani*| Scholar at NUML University, National University of Modern Languages, Islamabad, Pakistan, Zakia Batool| Lecturer at NUML University, Na...
Year: 2016, Volume: 6, Number: 2
(44 downloads)
Abstract

According to economists, political instability is harmful for economic development of any Country. Pakistan is also facing the problem of political instability, since political instability causes a decrease in investment and rapidity of economic development process. This paper aims at analyzing the impact of political instability and foreign direct investment on economic development of Pakistan. The study also checks out what are the variables other than political instability and FDI that effect the economic development of the country. By using times series data from 1980 to 2013 taken from world data bank, an ARDL model is estimated. The estimation of short run result shows that political instability is insignificant, that is, it does not affect economic development in the short run, but in long run its effect on economic development is negative and significant. On the other hand foreign direct investment (FDI) has positive relationship in both short run and in long run. So government should improve political situations and should make strategies to attract FDI.

Keywords: HDI, FDI, Inflation, Political instability, Population, Life expectancy
AN ANTI-AUSTERITY POLICY RECIPE AGAINST DEBT ACCUMULATION IN THE PRESENCE OF HIDDEN ECONOMY

AN ANTI-AUSTERITY POLICY RECIPE AGAINST DEBT ACCUMULATION IN THE PRESENCE OF HIDDEN ECONOMY

Authors: Gerasimos T. Soldatos| American University of Athens, Athens, Greece
Year: 2016, Volume: 6, Number: 2
(42 downloads)
Abstract

Contrary to what the literature on the linkage between debt accumulation and hidden economy suggests, this paper advocates that the two relationships, tax-hidden economy size and inflation-hidden economy size, have to be inverse because it is the relative, not the absolute hidden economy size that matters, and it is this that should be the yardstick for empirical work on the subject. It is also this that should be the yardstick for policymaking against debt accumulation by following the anti-austerity policy recipe that debt manipulation should be relying more on money than on taxation, that as soon as more money facilitates hidden activities, tax design should be counteracting this trend too, and that the Laffer curve should be peaking at an average tax rate which is less than one. This rule derives as a matter of preserving such official-cum-hidden economy technical-cum-allocative efficiency over the course of the business cycle that keeps the overall economy always in general equilibrium.

Keywords: Public debt, Non-observed/Hidden sector, Taxation, Income elasticity of money demand, Business cycles, Structural efficiency

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