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Open Access
Article
Publication date: 1 November 2022

Thai-Ha Le, Long Hai Vo and Farhad Taghizadeh-Hesary

This study examines the co-integration relationships between Association of Southeast Nations (ASEAN) stock indices as a way to assess the feasibility of policy initiatives to…

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Abstract

Purpose

This study examines the co-integration relationships between Association of Southeast Nations (ASEAN) stock indices as a way to assess the feasibility of policy initiatives to strengthen market integration in ASEAN and identify implications for portfolio investors.

Design/methodology/approach

The authors employ threshold co-integration tests and a non-linear autoregressive distributed lag (NARDL) model to study the asymmetric dynamics of ASEAN equity markets. The study’s data cover the 2009–2022 period for seven member states: Cambodia, Indonesia, Malaysia, the Philippines, Singapore, Thailand and Vietnam.

Findings

The authors find evidence supporting co-integration relationships; adjustment toward equilibrium is asymmetric in the short run and symmetric in the long run for these countries. While co-movement in ASEAN equity markets seems encouraging for initiatives seeking to foster financial integration in regional economies, the benefits for international portfolio diversification appear to be neutralized.

Originality/value

The issue of stock market integration is important among policymakers, investors and academics. This study examines the level of stock market integration in ASEAN during the 2009–2022 period. For this purpose, advanced co-integration techniques are applied to different frequencies of data (daily, weekly and monthly) for comparison and completeness. The empirical analysis of this study is conducted using the Enders and Siklos (2001) co-integration and threshold adjustment procedure. This advanced co-integration technique is superior compared to other co-integration techniques by permitting asymmetry in the adjustment toward equilibrium.

Details

Journal of Asian Business and Economic Studies, vol. 31 no. 1
Type: Research Article
ISSN: 2515-964X

Keywords

Open Access
Article
Publication date: 25 April 2024

Armando Urdaneta Montiel, Emmanuel Vitorio Borgucci Garcia and Segundo Camino-Mogro

This paper aims to determine causal relationships between the level of productive credit, real deposits and money demand – all of them in real terms – and Gross National Product…

Abstract

Purpose

This paper aims to determine causal relationships between the level of productive credit, real deposits and money demand – all of them in real terms – and Gross National Product between 2006 and 2020.

Design/methodology/approach

The vector autoregressive technique (VAR) was used, where data from real macroeconomic aggregates published by the Central Bank of Ecuador (BCE) are correlated, such as productive credit, gross domestic product (GDP) per capita, deposits and money demand.

Findings

The results indicate that there is no causal relationship, in the Granger sense, between GDP and financial activity, but there is between the growth rate of real money demand per capita and the growth rate of total real deposits per capita.

Originality/value

The study shows that bank credit mainly finances the operations of current assets and/or liabilities. In addition, economic agents use the banking system mainly to carry out transactional and precautionary activities.

Details

Journal of Economics, Finance and Administrative Science, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2077-1886

Keywords

Open Access
Article
Publication date: 30 September 2021

Kesuh Jude Thaddeus, Chi Aloysius Ngong, Njimukala Moses Nebong, Akume Daniel Akume, Jumbo Urie Eleazar and Josaphat Uchechukwu Joe Onwumere

The purpose of this paper is to examine key macroeconomic determinants on Cameroon's economic growth from 1970 to 2018.

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Abstract

Purpose

The purpose of this paper is to examine key macroeconomic determinants on Cameroon's economic growth from 1970 to 2018.

Design/methodology/approach

Data were obtained from the World Development Indicators and applied on time series data econometric techniques. The auto-regressive distributed lag (ARDL) bounds model analyzed the data since the variables had different order of integration.

Findings

The results showed long and short runs’ positive and significant connection between economic growth in Cameroon and government expenditure; trade openness, gross capital formation and exchange rate. Human capital development, foreign aid, money supply, inflation and foreign direct investment negatively and significantly affected economic growth in the short and long-runs. Hence, the macroeconomic indicators are not death.

Research limitations/implications

The present research paper has tried to capture the impact of nine macroeconomic determinants on economic growth such as the government expenditure (LNGOVEXP), human capital development (LNHCD), foreign aids (AID), trade openness (LNTOP), foreign direct investment (LNFDI), gross capital formation (INVEST), broad money (LNM2), official exchange rate (LNEXHRATE) and Inflation (LNINFLA). However, these variables have the tendency to affect each other in a unidirectional or bidirectional manner. Further, the present research paper is unable to capture the impact of other macroeconomic variable due to the unavailability of data.

Practical implications

The study recommends that Cameroon should use proper planning and strategic policy interventions to achieve higher sustainable economic growth with human capital development, foreign aid, money supply, foreign direct investment and moderate inflation.

Social implications

Macroeconomic indicators, if managed well, increase economic growth.

Originality/value

This paper to the best of the researcher's knowledge presents new background information to both policymakers and researchers on the main macroeconomic determinants using econometric analysis.

Details

Journal of Business and Socio-economic Development, vol. 4 no. 1
Type: Research Article
ISSN: 2635-1374

Keywords

Open Access
Article
Publication date: 24 January 2024

Abubakar Musah, Peter Kwasi Kodjie and Munkaila Abdulai

This paper examines the short- and long-run effects of foreign direct investment (FDI) on tax revenue in Ghana.

Abstract

Purpose

This paper examines the short- and long-run effects of foreign direct investment (FDI) on tax revenue in Ghana.

Design/methodology/approach

The paper adopts the autoregressive distributed lag approach to estimate FDI’s long-run and short-run effects on tax revenue. The study uses time-series data from 1983 to 2019 for Ghana, mainly obtained from The Bank of Ghana, the World Bank and the IMF.

Findings

The results show that, in the short-run, FDI has no significant effect on direct tax revenue and total tax revenue but significantly hurts indirect tax revenue. In the long run, however, the results show that FDI has significant positive effects on indirect tax revenue and total tax revenue but no significant effect on direct tax revenue.

Originality/value

Empirical studies often fail to analyse the short-run and long-run effects of FDI on tax revenue. This study contributes to the mixed literature by analysing the short-run and long-run effects of FDI on tax revenue in an emerging market context. Additionally, this study employs three tax revenue measures in analysing the nexus.

Details

Journal of Humanities and Applied Social Sciences, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2632-279X

Keywords

Open Access
Article
Publication date: 5 April 2024

Chi Aloysius Ngong, Kesuh Jude Thaddeus and Josaphat Uchechukwu Joe Onwumere

This paper aims to examine the causation linking financial technology to economic growth in the East African Community states from 1997 to 2019.

Abstract

Purpose

This paper aims to examine the causation linking financial technology to economic growth in the East African Community states from 1997 to 2019.

Design/methodology/approach

Autoregressive distributed lag is used. Gross domestic product per capita proxies economic growth, automated teller machines, point of sale, debit card ownership and mobile banking measure financial technology.

Findings

The results unveil a significant relationship between financial technology and economic growth. The findings show bidirectional causality between automated teller machine and economic growth, with unidirectional causation from economic growth to point of sales and internet banking, mobile banking and government effectiveness to economic growth. The error correction term is negatively significant, demonstrating a long-term convergence between Fintech measures and economic growth.

Research limitations/implications

The governments should effectively enact and implement policies that protect investments in financial technologies to boost economic growth in the East African Community countries. The government should reduce taxes on financial technology equipment and related services. The use of automated teller machine, debit card ownership and internet banking should be encouraged through cashless transactions. Financial institutions should adopt cashless operation policies to encourage the use of financial technologies.

Originality/value

Research results on the bond between financial technology and economic growth are not conclusive. These studies demonstrate that technological innovations are double edged-swords, with both positive and negative sides. The results are conflicting; some reveal positive relationships, while others show negative links. Hence, research is required to fill the lacuna.

Details

Journal of Economics, Finance and Administrative Science, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2077-1886

Keywords

Open Access
Article
Publication date: 11 October 2023

Nikhil Kumar Kanodia, Dipti Ranjan Mohapatra and Pratap Ranjan Jena

Economic literature highlights both positive and negative impact of FDI on economic growth. The purpose of this study is to confirm the relationship between various economic…

Abstract

Purpose

Economic literature highlights both positive and negative impact of FDI on economic growth. The purpose of this study is to confirm the relationship between various economic factors and FDI equity inflows and find out deviations, if any. This is investigated using standard time-series econometric models. The long and short run relationship is inquired with respect to market size, inflation rate, level of infrastructure, domestic investment and openness to trade. The choice of variables for Indian economy is purely based on empirical observations obtained from scientific literature review.

Design/methodology/approach

The study involves application of autoregressive distributive lag (ARDL) model to investigate the relationship. The long run co-integration between FDI and economic growth is tested by Pesaran ARDL model. The stationarity of data is tested by augmented Dickey Fuller test and Phillip–Perron unit root test. Error correction model is applied to study the short run relationship using Johansen’s vector error correction model method besides other tests.

Findings

The results show that the domestic investment, inflation rate, level of infrastructure and trade openness influence inward FDI flows. These factors have both long and short-term relationship with FDI inflows. However, market size is insignificant in influencing the foreign investments inflows. There lies an inverse relation between FDI and inflation rate.

Originality/value

To the best of the authors’ knowledge, the study is original. The methodology and interpretation of results are distinct and different from other similar studies.

Details

Vilakshan - XIMB Journal of Management, vol. 21 no. 1
Type: Research Article
ISSN: 0973-1954

Keywords

Open Access
Article
Publication date: 3 November 2023

Adella Grace Migisha, Joseph Mapeera Ntayi, Muyiwa S. Adaramola, Faisal Buyinza, Livingstone Senyonga and Joyce Abaliwano

An unreliable supply of grid electricity has a strong negative impact on industrial and commercial profitability as well as on household activities and government services that…

Abstract

Purpose

An unreliable supply of grid electricity has a strong negative impact on industrial and commercial profitability as well as on household activities and government services that rely on electricity supply. This unreliable grid electricity could be a result of technical and security factors affecting the grid network. Therefore, this study aims to investigate the effects of technical and security factors on the transmission and distribution of grid electricity in Uganda.

Design/methodology/approach

This study used the ordinary least squares (OLS) and autoregressive distributed lag (ARDL) models to examine the effects of technical and security factors on grid electricity reliability in Uganda. The study draws upon secondary time series monthly data sourced from the Uganda Electricity Transmission Company Limited (UETCL) government utility, which transmits electricity to both distributors and grid users. Additionally, data from Umeme Limited, the largest power distribution utility in Uganda, were incorporated into the analysis.

Findings

The findings revealed that technical faults, failed grid equipment, system overload and theft and vandalism affected grid electricity reliability in the transmission and distribution subsystems of the Ugandan power grid network. The effect was computed both in terms of frequency and duration of power outages. For instance, the number of power outages was 116 and 2,307 for transmission and distribution subsystems, respectively. In terms of duration, the power outages reported on average were 1,248 h and 5,826 h, respectively, for transmission and distribution subsystems.

Originality/value

This paper investigates the effects of technical and security factors on the transmission and distribution grid electricity reliability, specifically focusing on frequency and duration of power outages, in the Ugandan context. It combines both OLS and ARDL models for analysis and adopts the systems reliability theory in the area of grid electricity reliability research.

Details

Technological Sustainability, vol. 3 no. 1
Type: Research Article
ISSN: 2754-1312

Keywords

Open Access

Abstract

Details

IIM Ranchi journal of management studies, vol. 3 no. 1
Type: Research Article
ISSN: 2754-0138

Open Access
Article
Publication date: 5 December 2023

Folorunsho M. Ajide and James T. Dada

The study's objective is to examine the relevance of globalization in affecting the size of the shadow economy in selected African nations.

Abstract

Purpose

The study's objective is to examine the relevance of globalization in affecting the size of the shadow economy in selected African nations.

Design/methodology/approach

To do this, the authors employ the KOF globalization index and implement both static and dynamic common correlated mean group estimators on a panel of 24 African nations from 1995–2017. This technique accommodates the issue of cross-sectional dependence, sample bias and endogenous regressors. Panel threshold analysis is also conducted to establish the nonlinearity between globalization and the shadow economy. To examine the causality between the variables, the study employs Dumitrescu and Hurlin's panel causality test.

Findings

The results show that globalization reduces the size of the shadow economy. The results of the nonlinear analysis suggest a U-shaped relationship. Overall globalization has a threshold impact of 48.837%, economic globalization has 45.615% and political globalization has 66.661% while social globalization has a threshold value of 35.744%. The results of the panel causality show that there is a bidirectional causality between the two variables.

Practical implications

The results suggest that the government and other relevant authorities need to introduce capital controls and other policy measures to moderate the degree of social, political and cultural diffusion. Appropriate policies should be formulated to monitor the extent of African economic openness to other continents to maximize the gains from globalization.

Originality/value

Apart from being the first study in the African region that evaluates the relevance of globalization in controlling the shadow economy, it also analyzes the dynamics and threshold analysis between the two variables using advanced panel econometrics which makes the study unique. The study suggests that globalization tools are useful for affecting the size of the shadow economy in Africa. This study provides fresh empirical evidence on the impact of globalization on the shadow economy in the case of Africa.

Details

Review of Economics and Political Science, vol. 9 no. 2
Type: Research Article
ISSN: 2356-9980

Keywords

Open Access
Article
Publication date: 30 October 2023

Nafisa Ahmad and Md. Abul Kalam Azad

Besides the extensive research on managerial efficiency in the financial sector worldwide, emerging economies in Europe remain untapped. This research scrutinises the impact of…

Abstract

Purpose

Besides the extensive research on managerial efficiency in the financial sector worldwide, emerging economies in Europe remain untapped. This research scrutinises the impact of managerial performance and competitive structures on their financial industry growth in terms of services they offer and ability to liquefy stock in capital markets.

Design/methodology/approach

This study contains data from selected emerging European countries' during the period of 2010–2020. This study uses data from the Heritage Foundation's Index of Economic Freedom to control for firm-level indicators. The fixed-effects (FE) method was used to explore the nexus between financial sector growth and management performance as well as competitive firm structure.

Findings

The findings provide evidence of the existing impact of firm indicators on the financial sector's growth. Two-step system the generalized method of moments (GMM) estimations are used for the robustness check of the authors' model. Whilst on a scavenger hunt through existing literature, the authors realise that there is an overwhelming lack of enthusiasm in this field.

Originality/value

With the intention of better assessment, the authors use regulatory contextual variables to look for any possible impacts and surprisingly discover a pattern in the financial growth nexus.

Details

Review of Economics and Political Science, vol. 9 no. 1
Type: Research Article
ISSN: 2356-9980

Keywords

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