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

A COMPARATIVE STUDY OF THE TAIWAN AND JAPAN EQUITY AND FOREIGN EXCHANGE MARKETS: MODELING, ESTIMATION AND APPLICATION OF THE COMPONENT GARCH-IN-MEAN MODEL

A COMPARATIVE STUDY OF THE TAIWAN AND JAPAN EQUITY AND FOREIGN EXCHANGE MARKETS: MODELING, ESTIMATION AND APPLICATION OF THE COMPONENT GARCH-IN-MEAN MODEL

Authors: Hsiang-Hsi Liu*| Distinguished Professor, Graduate Institute of International Business, National Taipei University, Taipei, Taiwan, Robin K Chou| Prof...
Year: 2016, Volume: 6, Number: 5
(37 downloads)
Abstract

The main purpose of this paper is to verify the effectiveness of the bivariate Component GARCH-in-mean (GARCH-M) model and analyze the interactions and risk premium of equity markets by exploring the short- and long-run volatility components on both the Taiwanese and Japanese equity markets. We show that unexpected shocks of volatility will in general influence the fluctuations of both equity and foreign exchange markets. Persistence on the long-run volatility components of both markets is also found. The results also reveal that the positive risk-return relation on equity markets can be further verified when the impacts of short and long-run volatility components are decomposed by the Component GARCH-M model. The decomposition can also facilitate reflecting the transitory and permanent volatility impacts of foreign exchange exposure on the returns of equity markets.

Keywords: ARCH, Component GARCH-in-mean model (GARCH-M), Risk premium, Foreign currency exposure, Equity market, Transitory and permanent volatilities
COMPARATIVE ANALYSIS OF ISLAMIC AND CONVENTIONAL BANKS IN THE UAE DURING THE FINANCIAL CRISIS

COMPARATIVE ANALYSIS OF ISLAMIC AND CONVENTIONAL BANKS IN THE UAE DURING THE FINANCIAL CRISIS

Authors: Issam Tlemsani*| Department of Finance and Economics, Qatar University, Qatar, Huda Al Suwaidi| Senior Internal Auditor, Abu Dhabi Securities Exchange
Year: 2016, Volume: 6, Number: 6
(52 downloads)
Abstract

The discourses of Islamic and conventional finance differ according to the principles of Islamic finance there is no separation of the spiritual and the secular. Islamic finance is explicitly concerned with spiritual values and social justice, in contrast to conventional finance, which is based on the maximization of individual utility, welfare and choice, as expressed for example in the shareholder value model. Islamic and conventional banks respond differently to financial shocks. This study analyses the performance of Islamic and conventional banking systems in the UAE during the financial crisis. The study was undertaken in two stages, first a comparative analysis one Islamic and one conventional banks from 2007 until 2008. Secondly, a cross sectional analysis, between the Islamic (8 banks) and conventional banking sector (43 banks) that operated in the UAE during the period 2007-2008 was undertaken.

Keywords: Islamic finance, Banks performance, Banking stability and risk management
COULD ZHOU XIAOCHUAN PUT OPTION SAVE CHINA’S CAPITAL MARKET?

COULD ZHOU XIAOCHUAN PUT OPTION SAVE CHINA’S CAPITAL MARKET?

Authors: Kai Shi| School of Economics, Northeast Normal University, Changchun, Jilin, P.R. China, Li Nie| Graduate School of Commerce and Management, Hitotsuba...
Year: 2016, Volume: 6, Number: 6
(38 downloads)
Abstract

This article proposes a new framework to analyze the impact of monetary policy on asset price. Based on the Sign-Restriction Approach proposed by Uhlig (2005) some orthogonal restrictions are imposed to filter out the interferences of money supply shock, easing monetary policy shock and national rescue shock on Zhou Xiaochuan Put Option shock in order to fully explore the effects of reserve requirement ratio (RRR) reduction and interest rate cut (so called ?Double Down?) in China?s financial market system. It shows that Zhou Xiaochuan Put Option has faint but relatively enduring positive effects on share price, causing a slight RMB devaluation and a plunge of SHIBOR rate and treasury yields. Moreover, the impact on short-term financing cost and benefits is significantly larger than that on the long-term. In this rescue operation, Zhou Xiaochuan Put Option plays a certain role, but its effects are less vigorous than expected.

Keywords: Monetary policy, Asset price, Sign-restriction approach
MODERN TRENDS OF DEVELOPMENT OF FINANCIAL MARKETS IN GEORGIA

MODERN TRENDS OF DEVELOPMENT OF FINANCIAL MARKETS IN GEORGIA

Authors: Lamara Qoqiauri| Doctor of Economic Sciences, Professor, Director of “Fund of Financial-Investment Policy and Strategy” (FFIPS)
Year: 2016, Volume: 6, Number: 6
(47 downloads)
Abstract

During the last decades, financial markets have undergone multiple changes. Along with the globalization of markets, more rapid growth of the markets of derived securities, changes of corporation ownership structures and others are noticed. Together with the mentioned issues, in the Manuscript we determine state of the financial market and its problems in Georgia; attention is paid to one of the most important attributes of the financial market ? economical value of the yield curve developed by the National Bank of Georgia with the assistance of the experts of the Central Bank of Czech Republic. The factors determining yield curve are defined in the Article, together with their application of evaluation of future interest rates. Important proposal for developing mechanism of securities in Georgia are represented in the Article, such as: the European Union - resulting from the duties towards the agreement of Georgian association the low of derived securities markets should approach to the ones of the European Union. The government is required to create a long term plan for financial instruments development, it is essential to share international experience, which involves sharing the best practice and creating justice basis of modern standards with the participation of large number of professionals. The government is responsible for supporting the enlargement and improvement of service of market participants. It also shall guarantee the transparency of derived securities market as well as higher level of organizing and trustworthy.

Keywords: Financial markets, Yield curve, Securities market, Corporate and treasure bonds, Country-specific risks, Interest rates
IMPOSITION OF R&D SUBSIDY IN A PRODUCT DIFFERENTIATED DUOPOLISTIC INDUSTRY

IMPOSITION OF R&D SUBSIDY IN A PRODUCT DIFFERENTIATED DUOPOLISTIC INDUSTRY

Authors: Ram Kumar Phuyal| Associate Professor, Centre for Economic Development and Administration (CEDA), Tribhuvan University, Kirtipur, Kathmandu, Nepal
Year: 2016, Volume: 6, Number: 6
(36 downloads)
Abstract

This study analyzes an imposition of government R&D investment subsidy in the standard model of vertical product differentiation with two products in a duopolistic competition. We show that the imposition of distinct subsidy to low quality firm increases its profit, but decreases the high quality firm?s profits, whereas subsidy to high quality firm increases both firms? profits. It can be concluded that the subsidization effects of government are socially beneficial whether it is uniform or distinct R&D subsidy policies. Therefore, it can be suggested to the emerging economies that industrial transformation and enhancement of social welfare are possible at a given period of time through the best adoption of moderate R&D investments subsidy in the firms under vertical product differentiation setting.

Keywords: Bertrand price competition, Fixed-costs, Government R&D policy, Nash-Equilibrium, Product quality, Vertical product
ENHANCED ECONOMIC STABILITY AND THE ROLE OF INFLATION TARGETING POLICY: EMPIRICAL STUDY ON CASE OF DEVELOPING COUNTRIES

ENHANCED ECONOMIC STABILITY AND THE ROLE OF INFLATION TARGETING POLICY: EMPIRICAL STUDY ON CASE OF DEVELOPING COUNTRIES

Authors: Olfa Manai Daboussi| FSEGT of Tunis- University of Tunis El Manar, Tunisia
Year: 2016, Volume: 6, Number: 6
(36 downloads)
Abstract

Inflation targeting has become the predominant monetary approach across the globe. In this paper, we examine the inflation targeting experience in developing countries. We estimate the effects of inflation targeting on macroeconomic performance in these economies. The approach is based on the methodology applied by P?tursson (2005) which uses panel data to assess the effects of inflation targeting while controlling for the Great Moderation. The work analyze the relationship between inflation targeting and macroeconomic performance for two groups: treatment and control group over the period 1980-2012. A key lesson from this experience is that inflation targeting monetary policy realizes macroeconomic performance and contributes to the reduction of inflation, especially in countries with hyperinflation.

Keywords: Inflation targeting, macroeconomic performance, developing economies
THE LINKAGE BETWEEN EXCHANGE RATES AND STOCK PRICES: EVIDENCE FROM VIETNAM

THE LINKAGE BETWEEN EXCHANGE RATES AND STOCK PRICES: EVIDENCE FROM VIETNAM

Authors: Tran Quang Huy| Faculty of Business Administration, Thai Nguyen University of Economics and Business Administration, Viet Nam
Year: 2016, Volume: 6, Number: 7
(39 downloads)
Abstract

This study researches the causal relationship between exchange rates and stock prices during pre and post financial crisis in Viet Nam, based on the collected daily data from 2005 to 2015. The paper investigates the long-run relationship between above-mentioned two variables using Johansen and Juselius (1990) co-integration test and short - run dynamic causal relationships by using Toda and Yamamoto (1995) procedure. Variance decompositions (VDCs) analysis expresses the predictable portion of exchange rates (stock prices) changes on the forecast error variance in stock prices (exchange rates). In this study, it was found that exchange rates and stock prices were non-normally distributed. Through unit root test, it was also established that both the time series, exchange rates and stock prices, were stationary at the level form itself. Further investigation into the causal relationship between the two variables using Granger Causality test not only finds a unidirectional causal relationship from stock prices to exchange rates, but also supports the traditional approach in post crisis case.

Keywords: Exchange rates, Stock prices, Johansen-Juselius co-integration test, Granger-causality test, Toda-Yamamoto‟s procedure, VDCs
DETERMINING REAL EXCHANGE RATE FLUCTUATIONS IN THE OIL-BASED GCC ECONOMIES

DETERMINING REAL EXCHANGE RATE FLUCTUATIONS IN THE OIL-BASED GCC ECONOMIES

Authors: Amin Z. A.*| Department of Economics, College of Business Administration, Kuwait University, Kuwait, El-Sakka M. I. T.| Department of Economics, Colle...
Year: 2016, Volume: 6, Number: 6
(46 downloads)
Abstract

This paper attempts to empirically determine the relationship between oil price fluctuations and movements in the dollar-pegged Gulf Cooperation Council (GCC) countries? exchange rates. Panel unit root tests are applied, followed by the estimation of a panel co-integration model to identify the long-run equilibrium relationship.

Keywords: Real exchange rates, Oil prices, Unit root, Co-integration, Vector error correction model (VECM), Panel
RESEARCH, DEVELOPMENT AND INNOVATION IN MALAYSIA: ELEMENTS OF AN EFFECTIVE GROWTH MODEL

RESEARCH, DEVELOPMENT AND INNOVATION IN MALAYSIA: ELEMENTS OF AN EFFECTIVE GROWTH MODEL

Authors: Ibrahim Akoum| Associate Professor Chairman of financial Studies Department, College of Business Administration, Rafik Hariri University, Lebanon
Year: 2016, Volume: 6, Number: 7
(49 downloads)
Abstract

The purpose of this paper is to examine the relationship between research and development activities in Malaysia and the country?s economic growth record. In particular, the paper lays out the changes in the growth model Malaysia adopted to make the transformation from an agriculture-based to a technology-based economy, thereby moving up the value chain. Notwithstanding data sparsity, this paper makes an effort to quantitatively examine the relationship between research and development and innovation activities in Malaysia by running simple linear regressions and multiple regressions to capture the impact of these variables on the GDP per capita variations. The paper notes that Malaysia has managed to achieve significant progress in its development efforts and in transforming its economy from an agrarian-based economy into a more diversified economy with a greater role for knowledge intensive activities, research and development, and innovation. Concluding that R&D and science and technology indicators have been associated with economic development indicators, the study proposes that further research be conducted to gauge the role of public sector intervention as well as the business sector R&D and innovative activities separately, and preferably at the sectoral level, where data would probably be more available than at the national level.

Keywords: Research and development, Science and technology, Innovation, Knowledge economy, Malaysia
THE STUDY OF SUPERVISION AND CONTROL IN ISLAMIC FINANCIAL MANAGEMENT

THE STUDY OF SUPERVISION AND CONTROL IN ISLAMIC FINANCIAL MANAGEMENT

Authors: Mahdi Saghafi*| Faculty member, Department of Accounting, Payame Noor University, Iran, Alireza Amirabadi| Faculty member, Department of Law, Payame N...
Year: 2016, Volume: 6, Number: 7
(42 downloads)
Abstract

The purpose of this research is studying the supervision and control of juristic views in Islamic financial. In Islam, evaluation, audit and other terms used to describe the monitoring and control has been discussed widely. The three authorities of the Islamic government surveillance of workers and managers include God, Imam and the people. In this research firstly supervision pyramid and kinds of supervision and control of Islamic management, the importance of inner supervision (self-control) in the view of Holy Quran, Prophet Muhammad, and Imam Ali, and stages of control and supervision will be discussed by mining the documents and studying the available texts. Then penitence, as a corrective action and its importance in Islam, and actions followed by controlling and supervising will be studied, and finally we have proposed a pattern of supervision and control while showing the importance and necessity of supervisor characteristics.

Keywords: Financial management, Supervision, Control, Obvious supervision, Secret supervision, Internal supervision
MERGERS AND ACQUISITIONS BY EMERGING COUNTRY MULTINATIONAL COMPANIES

MERGERS AND ACQUISITIONS BY EMERGING COUNTRY MULTINATIONAL COMPANIES

Authors: Ayşe Yüce| Ted Rogers School of Management Ryerson University
Year: 2016, Volume: 6, Number: 7
(39 downloads)
Abstract

This paper investigates the mergers and acquisitions by the emerging country multinational companies. Emerging country multinational companies do not have access to big amounts of capital as many developed country multinational companies. These companies can decide to engage in mergers and acquisitions with those of the other emerging country multinational companies in order to increase their profitability and competitiveness. We examine whether or not emerging country multinationals earn high and significant positive abnormal returns as a result of merger and acquisitions and we also investigate whether or not the return patterns of the emerging country multinationals are different than those of the developed country companies.

Keywords: Mergers and acquisitions, Multinational companies
TARIFF, CONSUMPTION HOME BIAS AND MACROECONOMIC DYNAMICS

TARIFF, CONSUMPTION HOME BIAS AND MACROECONOMIC DYNAMICS

Authors: Chung-Fu Lai| Department of Applied Economics, Fo Guang University, Yilan County, Taiwan
Year: 2016, Volume: 6, Number: 8
(40 downloads)
Abstract

In this paper, New Open Economy Macroeconomics is served as an analytical framework to build a setting which is in line with structure of an imperfectly competitive market, we follow an open economy model with micro-foundation for two countries to explore the long-term and short-term effects of tariff shock on various macroeconomic variables (e.g. consumption, output, prices, exchange rate, terms of trade, and so on), and try to explain the role that consumption home bias plays therein. With theoretical derivation and simulation analysis, we find that the phenomenon such as undershooting, overshooting or mis-adjustment might happen to the dynamic adjustment process of each macroeconomic variable in face of domestic tariff shock while domestic and foreign consumers who have asymmetric behavior of consumption bias on the imported and exported goods.

Keywords: Tariff shocks, Imperfectly competitive market, Consumption home bias, Micro-foundation, Macroeconomic dynamics, New open economy macroeconomics
NONLINEAR EFFECTS OF THE FINANCIAL CRISIS ON ECONOMIC GROWTH IN ASIAN COUNTRIES: EMPIRICAL EVALUATION WITH A PSTR MODEL

NONLINEAR EFFECTS OF THE FINANCIAL CRISIS ON ECONOMIC GROWTH IN ASIAN COUNTRIES: EMPIRICAL EVALUATION WITH A PSTR MODEL

Authors: Amira MAJOUL| Applied Quantitative Analysis Unit (UAQUAP)- GATE (UMR 5824 CNRS). Higher Institute of Management of Tunis, University of Tunis, Tunisia...
Year: 2016, Volume: 6, Number: 8
(34 downloads)
Abstract

The objective of this paper is to evaluate the effectiveness of fiscal policy in emerging countries in periods of crisis. We study the effect of fiscal policy on economic activity distinguishing between periods of recession and expansion periods. Our goal will be to explore the nonlinear effect of fiscal policy in Asian emerging countries on the activity during periods of crisis. We use the PSTR model. This model is used on annual data for the period 1990-2013 for a sample of 8 emerging Asian countries. Our main findings are the following: First, this study confirmed that the PSTR model is more robust comparing it to a simple linear model. Indeed, it can highlight the asymmetric effect of fiscal policy on economic activity. Second, the nonlinearity of fiscal policy is explained by the phases of cycles and the level of public debt.

Keywords: Business cycles, Financial crisis, Economic growth, PSTR model
ASIA’S RESERVE ACCUMULATION: PART OF A NEW PARADIGM

ASIA’S RESERVE ACCUMULATION: PART OF A NEW PARADIGM

Authors: Florian Brugger| University of Graz, 8010 Graz, Universitätsstraße 15 Bauteil G/IV Austria
Year: 2016, Volume: 6, Number: 8
(39 downloads)
Abstract

So far, various contributions have failed to explain Asia?s fat foreign currency reserve accumulation. In this paper, I analyze reserve holding decisions in a wider social, political, and economic context. Using Weber?s heuristic of ideas and interests as determinants of actions, I show that Asian countries? reserve accumulation is caused by a paradigm shift. In Asia?s former Development State paradigm, accumulation of huge reserves was not of central importance because of closed and heavily regulated financial markets. After the Development State paradigm had collapsed in the 1980s, a new paradigm was built around the ideas of liberalism, the unconditional avoidance of any further financial crisis, and high employment. In order to harmonize the requests of liberal politics and open financial markets in addition to ?full? employment driven by export-led growth and the avoidance of further crises, hoarding reserves was a suitable strategy.

Keywords: Ideas and interests, Reserve accumulation, Asian transformation, Asian paradigm shift, Weber heuristic
EXPORT DIVERSIFICATION OF GEORGIAN FIRMS TO THE EU MARKET

EXPORT DIVERSIFICATION OF GEORGIAN FIRMS TO THE EU MARKET

Authors: Natia Daghelishvil| Doctoral Candidate of Ivane Javakhishvili Tbilisi State University, Georgia
Year: 2016, Volume: 6, Number: 8
(39 downloads)
Abstract

This paper aims at analyzing market penetration strategies in the internationalization process, obstacles of Georgian exporter firms to the EU market and to find solutions for a better level of diversification. On June 2014, EU signed Association Agreement (AA) with Georgia, which deepens political and economic ties between the signatories with a long-term perspective of closer political association and economic integration. This is a challenge for Georgia to fasten process of export diversification on the EU market. Main findings of the research is connected to the fact that Association Agreement will influence on export diversification on the EU market, when main obstacles are identified ? lack of access on the financial resources, unfavourable tax environment, high competition, scarce commodity range etc. Hence, Deep and Comprehensive Free Trade Area (DCFTA) which is created under the AA will lead Georgia to benefit from new trading opportunities and easier access to the EU market ? the largest in the world. Georgian companies and foreign investors will adopt opportunities implied into the Association Agreement gradually.

Keywords: Export diversification, Georgian firms, EU market, AA, DCFTA

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.