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

IS THE EXCHANGE RATE OF BANGLADESH MEAN REVERTING? A PANEL UNIT ROOT APPROACH

IS THE EXCHANGE RATE OF BANGLADESH MEAN REVERTING? A PANEL UNIT ROOT APPROACH

Authors: S. M. Woahid Murad| Assistant Professor, Department of Economics, Bangladesh University of Business and Technology (BUBT), Mirpur-2, Dhaka, Bangladesh
Year: 2016, Volume: 6, Number: 2
(36 downloads)
Abstract

The study examines the relationship between market liquidity and economic growth in Nigeria over the period of 1987-2012 using time series data. The starting point of our analysis was to check for the time series properties of the underlying data using the Augmented Dickey Fuller (ADF) and the Engle-Granger procedure. The existence of non-stationarity and co-integration were established which necessitated an ECM for the analysis. But first, the popular Granger-Causality Test was conducted to ascertain whether Market Liquidity Granger-causes Economic Growth or vice-versa. The empirical result from the Granger causality test indicates that market liquidity does not granger-cause GDP; neither does GDP granger-cause market liquidity. From the result, Market Liquidity captured by its proxies of Turn-over Ratio, Market Capitalization and Private Sector Credit are statistically significant in explaining GDP. Based on the findings, we suggest the monetary authorities should focus on policies that will develop financial infrastructure that will ensure macroeconomic stability under which economic agents can make decisions that promote rapid financial market development and subsequent capital market performance. The problem of low awareness about the operations of the capital markets in the economy can be reduced by educating the populace about the opportunities available in the market.

Keywords: Purchasing power parity, Panel unit root test, Bangladesh
AN ERROR CORRECTION REPRESENTATION OF MARKET LIQUIDITY – ECONOMIC GROWTH NEXUS IN NIGERIA: A RECENT EXPERIENCE

AN ERROR CORRECTION REPRESENTATION OF MARKET LIQUIDITY – ECONOMIC GROWTH NEXUS IN NIGERIA: A RECENT EXPERIENCE

Authors: Kaine, A.I.N*| School of Agricultural Sciences, National Open University of Nigeria, KM4 Kaduna-Zaria Express Way, Rigachikun, Kaduna, Nigeria, Olotu,...
Year: 2016, Volume: 6, Number: 2
(37 downloads)
Abstract

The study examines the relationship between market liquidity and economic growth in Nigeria over the period of 1987-2012 using time series data. The starting point of our analysis was to check for the time series properties of the underlying data using the Augmented Dickey Fuller (ADF) and the Engle-Granger procedure. The existence of non-stationarity and co-integration were established which necessitated an ECM for the analysis. But first, the popular Granger-Causality Test was conducted to ascertain whether Market Liquidity Granger-causes Economic Growth or vice-versa. The empirical result from the Granger causality test indicates that market liquidity does not granger-cause GDP; neither does GDP granger-cause market liquidity. From the result, Market Liquidity captured by its proxies of Turn-over Ratio, Market Capitalization and Private Sector Credit are statistically significant in explaining GDP. Based on the findings, we suggest the monetary authorities should focus on policies that will develop financial infrastructure that will ensure macroeconomic stability under which economic agents can make decisions that promote rapid financial market development and subsequent capital market performance. The problem of low awareness about the operations of the capital markets in the economy can be reduced by educating the populace about the opportunities available in the market.

Keywords: Market liquidity, Turn-over ratio, Trading volumes, Economic growth
THE SCOPE FOR INCREASING BIOFUEL CROP PRODUCTION IN JAPAN: AN ANALYSIS OF ALTERNATIVE POLICIES

THE SCOPE FOR INCREASING BIOFUEL CROP PRODUCTION IN JAPAN: AN ANALYSIS OF ALTERNATIVE POLICIES

Authors: Ai Leon| National Institute for Agro-Environmental Sciences (NIAES), Tsukuba, Japan, Roberto Leon*| National Graduate Institute for Policy Studies (GR...
Year: 2016, Volume: 6, Number: 3
(43 downloads)
Abstract

In 2010, concerns regarding Japan?s excessive dependence on imports for food and energy caused the Japanese government to introduce subsidies to stimulate biofuel crop production. In this paper, we study the viability of price subsidies and certain other policies with respect to increasing the production of biofuel crops. First, we estimate the elasticity of the supply of Japanese agriculture with respect to price (inclusive of the subsidy for each unit of production). For this purpose, we use a longitudinal database of 1822 municipalities that covers all 47 prefectures of Japan. This database includes information about the production of 116 crops and their respective revenues, including subsidies. Using panel data regression techniques, we determine that although the long-run supply of certain crops is highly elastic, this supply is highly inelastic if the production of other crops is held constant. Therefore, an increase in the demand for biofuel crops will cause substantial price increases of agricultural products, largely crowding out the demand for food crops. We then discuss the viability of encouraging various agricultural practices, such as multiple cropping and the cultivation of recently abandoned land. Instead of using abandoned land, which produces a lower yield and requires abundant labor, we recommend a multiple cropping system that involves the rotation of rice and wheat. Although these measures will increase biofuel crop production to a certain extent in the short run, full-scale biofuel crop production can only take place after substantial reforms are implemented to increase the production capacity of the Japanese agricultural sector.

Keywords: Biofuel crop, Production subsidies, Elasticity of supply, Agricultural policy, Longitudinal data, Land policy
FINANCIAL DEVELOPMENT AND INVESTMENT AMOUNT NEXUS: A CASE STUDY OF TURKEY

FINANCIAL DEVELOPMENT AND INVESTMENT AMOUNT NEXUS: A CASE STUDY OF TURKEY

Authors: Banu Demirhan| Afyon Vocational School, Department of Economics and Administrative Programs, Afyon Kocatepe University, Turkey
Year: 2016, Volume: 6, Number: 3
(37 downloads)
Abstract

The paper examines the relationship between financial development and investment amount in Turkey over the period of 1998:01-2015:02 by using Toda-Yamamoto method. Banking sector and stock market measures of financial development are used in the econometric analysis. Our findings suggest that there is uni-directional causality from stock market development to investment amount. Moreover, empirical findings present that there is uni-directional causality from investment amount to banking sector development and bi-directional causality between banking sector development and stock market development.

Keywords: Financial development, Capital stock, Toda-Yamamoto method, Investment, Banking sector, Causality
DO TRADING VOLUME AND BID-ASK SPREAD CONTAIN INFORMATION TO PREDICT STOCK RETURNS? INTRADAY EVIDENCE FROM INDIA

DO TRADING VOLUME AND BID-ASK SPREAD CONTAIN INFORMATION TO PREDICT STOCK RETURNS? INTRADAY EVIDENCE FROM INDIA

Authors: Rashmi Ranjan Paital*| Research Scholar, School of Economics, University of Hyderabad, Hyderabad, India, Naresh Kumar Sharma| School of Economics, Uni...
Year: 2016, Volume: 6, Number: 3
(38 downloads)
Abstract

Relying on the mixture of distribution hypothesis (MDH) and the sequential information arrival hypothesis (SIAH), this paper empirically examines the relationship between stock returns, trading volume and bid-ask spread for 50 Indian stocks using high frequency 5-minute data set for the period July 2, 2012 to December 31, 2012. This is the first study in India using bid-ask spread as yet another measure of information flow variable along with trading volume. Our empirical findings provide evidence of a positive contemporaneous relationship between absolute returns and trading volume as well as between absolute returns and bid-ask spread. The Granger causality test results show that the information content of trading volume and bid-ask spread are useful for predicting stock returns in Indian stock market. Overall results seem to indicate that information arrival to investors tends to follow a sequential rather than simultaneous process as suggested by SIAH. In summary, both trading volume and bid-ask spread serve as a good measure of information variable in India.

Keywords: Stock returns, Trading volume, Bid-ask spread, Market microstructure, MDH, SIAH
ECONOMICS IMPERIALISM: SWOT ANALYSIS

ECONOMICS IMPERIALISM: SWOT ANALYSIS

Authors: Slavica Manic| Associate Professor, Faculty of Economics, University of Belgrade, Serbia
Year: 2016, Volume: 6, Number: 3
(37 downloads)
Abstract

It?s been a quarter of century since one of the founders of economic imperialism was crowned with glory and awarded for the establishing of hitherto non-conventional economic approach. Application of analytical tools of economic analysis on non-economic issues has proved that economic science has the capacity and the ability to step outside traditional boundaries of the discipline. Trend of economics? engaging with neighboring disciplines has dramatically increased since that time. Not only the narrow mainstream methodology has greatly expanded, but it proceeded in a way that the range of topics, subjected to economics? influence, seemed to be endless. And economics imperialism continued to evolve, changing only its forms from aggressive to sophisticated one. Although suited to meet economics aspirations, it surely enabled more detailed and thorough understanding of diverse social phenomena. In spite of the fact that economics itself experienced remarkable improvements, owing to such kind of imperialism, its continuous challenging and compromising did not cease to be questioned. That is why this paper is intended to sketch SWOT analysis of economics imperialism. More precisely, its purpose is twofold: a) to review what literature lately offered about justification of economic imperialism; b) to analyze whether weaknesses it produced, within economics as well as threats stemming from outside discipline?s borders, may jeopardize future progress of economic science. We believe that this approach might be helpful for future studies, assessing in what extent the unification of the mainstream and his methodical empowerment are still sufficient to compensate limitations, imposed by economics imperialism.

Keywords: Economics imperialism, Mainstream economics, Heterodoxy, Economic analysis, Economic methodology, SWOT analysis
DO NEGATIVE INCIDENTS AND CORPORATE SOCIAL RESPONSIBILITY INFLUENCE ON SPONSORS’ STOCK ABNORMAL RETURNS?

DO NEGATIVE INCIDENTS AND CORPORATE SOCIAL RESPONSIBILITY INFLUENCE ON SPONSORS’ STOCK ABNORMAL RETURNS?

Authors: Huei-Wen Lin| Department of Finance and Banking, Aletheia University, Taiwan
Year: 2016, Volume: 6, Number: 3
(63 downloads)
Abstract

This study aimed at introducing the panel data analysis to explore the determinants and the effect of ethics violations on the abnormal returns of the sponsors of Chinese Professional Baseball League (CPBL) by using the five negative incidents over 20 years. The financial secondary data collected from the CTMONEY database and the CPBL official website were employed to determine the relationship between sponsors? attributes and their stock abnormal returns when the CPBL suffers from the gambling scandals through the panel data analysis. The results showed that there were not always significantly negative impacts on the abnormal returns of sponsors when a match-fixing scandal happened in the CPBL, even the sponsors have participate in the activities of corporate social responsibility (CSR). The managerial implication drawn from this study was not only to help professional sports managers or sponsors have a deeper insight into the significance and spillover effect of negative incidents on stock returns, but also for the investors in capital market, the signal effects reflected by the negative incidents could be used as the reference for the further investment decisions.

Keywords: Negative incidents, Corporate social responsibility (CSR), Panel data, Sponsors, Abnormal returns, Chinese professional baseball league (CPBL)
THE IMPACT OF MATCH-FIXING SCANDALS ON THE STOCK RETURNS OF PARENT COMPANIES AND SPONSORS: EVIDENCE FROM CHINESE PROFESSIONAL BASEBALL LEAGUE IN TAIWAN

THE IMPACT OF MATCH-FIXING SCANDALS ON THE STOCK RETURNS OF PARENT COMPANIES AND SPONSORS: EVIDENCE FROM CHINESE PROFESSIONAL BASEBALL LEAGUE IN TAIWAN

Authors: Huei-Fu Lu*| Department of Sport Management, Aletheia University, Taiwan, Tien-Tze Chen| Department of Sport Management, Aletheia University, Taiwan
Year: 2016, Volume: 6, Number: 4
(38 downloads)
Abstract

Although an increasing number of literature indicate the positive impact of sponsoring major sports events or themed competitions, few studies have examined how a match-fixing scandal occurring in the most popular and national professional sports impacts the stock abnormal returns of the parent company and sponsor. Using event study method with content analysis, this study focused on the spillover effect of incidents involving sports ethics violations. Specifically, the impact of five match-fixing scandals of Chinese Professional Baseball League (CPBL) on the stock abnormal returns of parent company and sponsor was examined. Secondary data collected from the data base of CTMONEY was compared results of match-fixing scandals in the CPBL to determine whether the match-fixing scandals could be regarded as a symbolic message leading to diminish the average abnormal returns of the parent companies and sponsors. The results showed that not all occurrences of CPBL match-fixing scandals negatively impacted the abnormal returns of the parent companies and sponsors. The findings can help professional sports operators and sponsors understand the implications and spillover effects of negative professional baseball incidents on stock returns.

Keywords: Match-fixing scandals, Stock returns, Parent company, Sponsors, Abnormal returns, Chinese professional baseball league (CPBL)
THE NEW KEYNESIAN PHILLIPS CURVE IN THAILAND THROUGH TWO FINANCIAL CRISES

THE NEW KEYNESIAN PHILLIPS CURVE IN THAILAND THROUGH TWO FINANCIAL CRISES

Authors: Hiroaki Sakurai| Ministry of Land, Infrastructure, and Transport and Tourism, Government of Japan
Year: 2016, Volume: 6, Number: 4
(37 downloads)
Abstract

This paper examines the New Keynesian Phillips curve (NKPC) in Thailand in the two decades from 1993 to 2014 marked by the two large crises of 1997 and 2008. This analysis is significant because expectations and economic growth in Thailand may have been influenced by incidents including coups and natural disasters. The findings are summarized as follows. First, the empirical analysis shows that the NKPC in Thailand is relatively forward-looking compared with that shown in previous studies involving developed countries. Second, the NKPC in Thailand did not exist before the 1997 crisis, probably because of the bubble economy. Third, the NKPC is clearly observable after 2009, partly because of improved economic conditions.

Keywords: Inflation, Phillips curve, Thailand, Unit root test, GMM, Forward-looking
DEPRECIATION RATE OF R&D CAPITAL: PANEL DATA ANALYSIS OF LISTED FIRMS IN JAPANESE R&D-INTENSIVE INDUSTRIES

DEPRECIATION RATE OF R&D CAPITAL: PANEL DATA ANALYSIS OF LISTED FIRMS IN JAPANESE R&D-INTENSIVE INDUSTRIES

Authors: Hirotsugu Sakai| Research Director, Mitsubishi Research Institute, Chiyoda-ku, Tokyo, Japan and Visiting Professor, Graduate School of Economics, Osak...
Year: 2016, Volume: 6, Number: 4
(40 downloads)
Abstract

Research and development (R&D) capital is thought to be at the core of technological progress. To measure the effect of R&D capital correctly, the knowledge of its depreciation rate is required. However, few studies have paid attention to the depreciation rate of R&D capital for recent Japanese firms. This study estimates the depreciation rate of R&D capital by two methods using panel data of listed Japanese firms in R&D-intensive industries. The results show that the rates are higher than the conventionally accepted 15 percent and those estimated by previous studies for Japanese firms.

Keywords: Research and Development (R&D), depreciation rate of R&D capital, Japanese firms, panel data, Q model of investment, multiple capital assets
INVESTIGATING THE CAUSAL RELATIONSHIP BETWEEN STOCK MARKET AND AGGREGATE ECONOMIC PERFORMANCE OF SOUTH AFRICA

INVESTIGATING THE CAUSAL RELATIONSHIP BETWEEN STOCK MARKET AND AGGREGATE ECONOMIC PERFORMANCE OF SOUTH AFRICA

Authors: Eleanya K. Nduka*| Centre for the Study of the Economies of Africa (CSEA), Abuja, Nigeria, Ugochukwu E. Anigbogu| Department of Economics, University...
Year: 2016, Volume: 6, Number: 4
(39 downloads)
Abstract

Stock is one of the key securities traded in the capital markets and as such, has attracted the attention of researchers. While it is said to propel economic activities, empirical studies conducted on different countries present divergent outcomes. Thus, in this study we investigate the long-run and causal relationship between stock market and aggregate economic activities of South Africa using quarterly data from 1995Q1 to 2013Q4. We utilize the Augmented-Dickey Fuller (ADF) and Philips-Perron (PP)tests for unit root, the Johansen (1995) Maximum Likelihood cointegration technique and VEC Model. The study further employs Granger (1969) pair-wise causality test approach. It is noteworthy that the model variables have long-run relationship, but the causality test result suggests that non cause each other.

Keywords: Stock, Economic, Relationship, Growth, Performance, Cointegration
DELTOID ANALYSIS OF PAKISTAN-ASEAN-CHINA FREE TRADE AGREEMENTS AND OPPORTUNITIES FOR PAKISTAN

DELTOID ANALYSIS OF PAKISTAN-ASEAN-CHINA FREE TRADE AGREEMENTS AND OPPORTUNITIES FOR PAKISTAN

Authors: Muhammad Saqib Irshad*| College of International Education, Tianjin University of Finance and Economics, Tianjin, China, Qi Xin| College of Internatio...
Year: 2016, Volume: 6, Number: 5
(40 downloads)
Abstract

The interaction of nations shaped by their bilateral ties and the multilateral associations in the shape of triangles demonstrates an opportunity to acknowledge some interesting and motivating dynamics of the existing international trade relations among nations. This study on Pakistan- Association of Southeast Asian Nations-China Free Trade Agreement is an effort to highlight the potentials of the structure of this triangle and opportunities for Pakistan. The analysis shows Pakistan trade with China and ASEAN countries is rapidly growing in recent years but exports are still in lacking position. China-Pakistan Economics Corridor totally favorable for Pakistan and it will create more opportunities and long terms benefits for Pakistan. FTA with ASEAN is really potential from which Pakistan can get advantage in various areas to make cooperation such as trade and industry, environment, investment, science and technology, narcotics control, information technology, agriculture, education, tourism and human resource development. Pakistan and ASEAN countries share familiar aspirations for peace, development and prosperity of the region: therefore, it will be great if both parties can cooperate on a larger scale to benefit from each other.

Keywords: Pakistan, China, ASEAN, Free trade agreement, Pakistan-China bilateral trade, CPEC
COMPARATIVE ANALYSIS OF PROFITABILITY OF LOCAL AND FOREIGN BANKS IN GHANA

COMPARATIVE ANALYSIS OF PROFITABILITY OF LOCAL AND FOREIGN BANKS IN GHANA

Authors: Samuel Erasmus Alnaa*| Department of Accountancy, Bolgatanga Polytechnic, Ghana, Joseph Adongo| Department of Accountancy, Bolgatanga Polytechnic, Gha...
Year: 2016, Volume: 6, Number: 5
(84 downloads)
Abstract

The implementation of the Financial Sector Adjustment Programme has beckoned to a number of foreign banks to flock into the country to do business. This has brought about intense competition in the banking industry with its attendant implications for profitability in the industry.

Keywords: Comparative, Profitability, Foreign, Local, Banks, Ghana
DETERMINANTS OF HOUSING PRICES IN AN OIL BASED ECONOMY

DETERMINANTS OF HOUSING PRICES IN AN OIL BASED ECONOMY

Authors: Humoud Almutairi*| Assistant Professor at Kuwaiti University, El-Sakka, M.I.T.| Professor of Economics, Kuwait University Kuwait
Year: 2016, Volume: 6, Number: 5
(40 downloads)
Abstract

This paper is trying to analyze the determinants of housing prices in an oil-based economy, where the price of oil plays a major role in such economies. It is also common to find that government spending represents the most important component of aggregate spending and that governments usually play a central role in the provision of public services to citizens at substantial subsidies, housing is on top of them. The paper is trying to identify the role played by oil price in the housing market in Kuwait. The model is composed of four major determinants of house prices including the price of oil, government expenditures, inflation rate and interest rate. Results confirm the role played by the four factors in determining the price of houses. Variance decomposition indicates that up to 10 quarters, 94.3% of the forecast error variance in housing prices is explained by house price itself, whereas, only 2.3%, 1.6%, 1.5% and 0.8% are explained by Interest rates, inflation rates, government expenditures, and price of oil respectively. The oil price does not seem to play an important impact on price changes in Kuwait. One important recommendation is for the government to relax its monopoly on land and invite the private sector to come up with housing solutions to increase the supply of houses in the private housing market and reduce the upward pressures on house prices.

Keywords: Oil based economies, Housing affordability, House prices, Government expenditures, Oil prices, Interest rates
PRIVATISING SOCIALLY OWNED ENTERPRISES, THE CASE OF KOSOVO

PRIVATISING SOCIALLY OWNED ENTERPRISES, THE CASE OF KOSOVO

Authors: Afrim Loku*| Finance and Budget Vice Rector of University of Applied Science; St. Rexhep Bislimi, Republic of Kosovo, Nadire Shehu Loku| Assistant Pro...
Year: 2016, Volume: 6, Number: 5
(41 downloads)
Abstract

This paper aims at analyzing activities, and some of the causes of economic expansion of Kosovo?s economy, mainly focused in stage of initial establishment of the private sector in Kosovo. The purpose of the paper is to present the current situation of privatization and results of this process, namely to review some of the obstacles, with a view of eliminating such obstacles and fostering development. The paper shall provide a comparison between the process and current point of privatization, with a special focus on obstacles to Kosovo?s economy. This paper shall prove an overview on the situation of privatization processes sectors, and it is an effort to mirror the main obstacles preventing from corruption and other factors. The main goal of the paper is to provide a basis for informing various actors involved in privatization process and economic development policy making in Kosovo. On the other hand, it is also an effort to contribute in consolidating information and statistical records, with a view of providing an accurate overview on Kosovo?s industry.

Keywords: Privatization, Industry, Obstacles to business, Employment, Exports, Imports

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.