Macroeconomic determinants of trade openness: empirical investigation of SAARC region

2018 ◽  
Vol 12 (2) ◽  
pp. 151-161 ◽  
Author(s):  
Muhammad Tahir ◽  
SAF Hasnu ◽  
Mario Ruiz Estrada
Keyword(s):  
Regional Cooperation ◽  
Labour Force ◽  
Trade Openness ◽  
Least Square Method ◽  
Least Square ◽  
Content Type ◽  
Currency Exchange ◽  
Long Run ◽  
Macroeconomic Determinants ◽  
The Impact

Purpose Trade openness plays a significant role in the growth process of countries. The purpose of this paper is to examine the impact of macroeconomic determinants on the trade openness of countries. Design/methodology/approach The study focuses on the South Asian Association for Regional Cooperation (SAARC) member countries and the data used were from 1971 to 2011. Panel data econometrics techniques and two stages least square method (TSLS) are used to carry out empirical analysis and robustness testing. Findings The main finding of the paper is that macroeconomic determinants such as investment both in physical and human capital and per capita gross domestic product (GDP) positively affect trade openness. Further, the size of labour force and currency exchange rate has also impacted trade openness negatively and significantly. Practical implications It implies that efficient macroeconomic management matters for higher trade openness. The sampled developing countries are suggested to pay favourable attention to macroeconomic variables if they want to grow in the long run through outward-oriented policies. Originality/value This paper is an original contribution in the context of SAARC countries by focusing on the relationship between macroeconomic determinants and trade openness.

The role of trade openness for industrial sector development: panel data evidence from SAARC region

2016 ◽  
Vol 10 (1) ◽  
pp. 93-103 ◽  
Author(s):  
Muhammad Tahir ◽  
Mario Ruiz Estrada ◽  
Imran Khan ◽  
Muhammad Asim Afridi
Keyword(s):  
Panel Data ◽  
Regional Cooperation ◽  
Trade Openness ◽  
Industrial Sector ◽  
Policy Makers ◽  
Content Type ◽  
Industrial Sectors ◽  
Long Run ◽  
The Impact

Purpose – The purpose of this study is to focus on South Asian Association for Regional Cooperation (SAARC) member economies to examine the impact of trade openness on the industrial sector development. Design/methodology/approach – Panel data econometric techniques are used to the data for the period 1980-2013 for the selected six countries, namely, Bangladesh, Bhutan, India, Nepal, Pakistan and Sri Lanka. Findings – It is found that trade openness has positively and significantly influenced the industrial sector of the sampled countries. Other determinants such as education and investment have also played a key role in helping the selected developing countries to develop their industrial sectors. Practical implications – The study suggests the policy-makers of the SAARC member countries to liberalize international trade substantially to enhance the contributions of industrial sector toward gross domestic product (GDP) and to achieve the dreamed goal of sustainable long-run growth for the region. Originality/value – An explicit relationship between trade openness and industrial sector of the SAARC member economies is yet to be examined.

Islamic calendar and stock market behaviour in India

2018 ◽  
Vol 45 (11) ◽  
pp. 1550-1566
Author(s):  
Dharani Munusamy
Keyword(s):  
Stock Market ◽  
Least Square Method ◽  
Least Square ◽  
Stock Market Returns ◽  
Content Type ◽  
Ordinary Least Square ◽  
Average Return ◽  
Year Effect ◽  
The Common ◽  
The Impact

Purpose The purpose of this paper is to examine the behavior of the stock market returns in the different days of the week and different months of the year in accordance with the Islamic calendar. Further, the study estimates the risk-adjusted returns to test the performance of the indices during the Ramadan and non-Ramadan days. Finally, the study investigates the impact of Ramadan on the returns and the volatility of the stock market indices in India. Design/methodology/approach Initially, the study applies the Ordinary Least Square method to test the day-of-the-week and the month-of-the-year effect of the common and Shariah indices. Next, the study employs the risk-adjusted measurement to examine the underperformance and over-performance of the indices for both the periods. Finally, the study estimates the GARCH (1,1) and GJR-GARCH (1,1) models to observe the impact of Ramadan on the returns and the volatility of the Shariah indices in India. Findings The study finds that an average return of the indices during the Ramadan days are higher than non-Ramadan days. Further, the average returns of the Shariah indices are significantly higher on Wednesday than other days of the week. In addition, the highest and significant mean returns and mean risk-adjusted returns of the indices during the Ramadan days are observed. Finally, the study finds an evidence of the Ramadan effect on the returns and volatility of the indices in India. Originality/value The study observes evidence that the Ramadan effect influences the Shariah indices, but not the common indices in the stock market of the non-Muslim countries. It indicates that the Ramadan creates the positive mood and emotions in the investors buying and selling activities. The study suggests that investors can buy the shares before Ramadan period and sell them during the Ramadan days to get an abnormal return in the emerging markets.

Accounting students' perceptions of work–life balance, accounting career image and intention to pursue accounting careers

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Saarce Elsye Hatane ◽  
Bernard Emerson ◽  
Olievia Soesanto ◽  
Ruth Arum Gunawan ◽  
Hatane Semuel
Keyword(s):  
Structural Equation ◽  
Least Square Method ◽  
Work Life ◽  
Partial Least Square ◽  
Least Square ◽  
Work Life Balance ◽  
Accounting Students ◽  
Life Balance ◽  
Content Type ◽  
The Impact

PurposeThe purpose of this study is to discover the impact of work–life balance on the intention to pursue accounting careers through accounting career image.Design/methodology/approachThe study managed to collect 693 closed questionnaires, using the five-point Likert Scale, from accounting students in several universities in Java, Sulawesi and Kalimantan, as the three most densely populated islands in Indonesia. The research model is analysed using partial least square method as a part of structural equation modelling.FindingsThere are positive and significant influences between work–life balance and the intention to pursue accounting career when supported by accounting career image. The positive perception of accounting career image motivates accounting students to pursue accounting careers. Accounting students argue that attaining a balance between work and personal life can improve positive perceptions of accounting careers, which drive them to pursue a career in accounting. Work–life balance is an essential factor due to the fact that it can, directly and indirectly, affect the intention to pursue accounting careers. In addition, positive image of accounting profession is found to be able to strengthen the positive influence of the work–life balance to pursue accounting careers.Research limitations/implicationsFurther studies can continue along the line of this study as the intention to choose an accounting career can change from time to time. In addition, the generational difference may create a discrepancy in perception and orientation in choosing accounting careers. Therefore, future studies should consider a broader scope and more updated objects.Practical implicationsThe findings suggest that working experience is an essential part for accounting students in choosing accounting careers, and so higher education institutions need to consider including field work-practice in their curriculums. Companies are also expected to prioritise work–life balance since it will motivate accounting students to choose an accounting career.Originality/valueThis study investigates the link between work–life balance and decisions to pursue accounting careers through accounting students' perceptions in Indonesia. This study combines the influences of work–life balance and accounting career image on the intention to pursue accounting careers in one model, in which accounting career image is the mediating variable in the indirect link of work–life balance.

Impact of hedonic motivation and corporate culture on the adoption of an information system

Kybernetes ◽  
2019 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Imane Beqqali Hassani ◽  
Razane Chroqui ◽  
Chafik Okar ◽  
Mohamed Talea ◽  
Ahmed Ouiddad
Keyword(s):  
Information System ◽  
Corporate Culture ◽  
Structural Model ◽  
Least Square Method ◽  
Measurement Model ◽  
Partial Least Square ◽  
Least Square ◽  
Adoption Process ◽  
Content Type ◽  
The Impact

Purpose The purpose of this paper is to evaluate the impact of corporate culture (CC) and hedonic motivation (HM) on the adoption of an information system (IS) inside a Moroccan company. To do so, the authors have combined and merged the “unified theory of acceptance and use of technology 2” along with the “Nguyen and Aoyama’s model” that covers the subject of CC. Later, the authors tested the research model within a Moroccan company. Design/methodology/approach In the present work, the authors used a quantitative analysis approach. Survey data were collected through oral interviews and analysis was performed based on the “partial least square” method, over a 94 sample of direct IS users. Findings The findings of the present investigation demonstrate the reliability and the validity of the established measurement model. Concerning the structural model, results support all hypotheses but with different effect size. The conclusion that can be extracted from this study is that CC and HM are important factors in the adoption process within the Moroccan firm. Originality/value This study enhances the understanding of the major factors affecting the adoption of an IS in a developing country. While several studies on adoption have been conducted, this study’s originality and contribution lays in the examination of the rarely evaluated factors: HM and CC.

scholarly journals Impact of Trade Openness and Human Capital on Economic Growth: A Comparative Investigation of Asian Countries

2020 ◽  
Vol 12 (7) ◽  
pp. 2930 ◽  
Author(s):  
Rabail Amna Intisar ◽  
Muhammad Rizwan Yaseen ◽  
Rakhshanda Kousar ◽  
Muhammad Usman ◽  
Muhammad Sohail Amjad Makhdum
Keyword(s):  
Economic Growth ◽  
Human Capital ◽  
Negative Impact ◽  
Trade Openness ◽  
Least Square ◽  
Ordinary Least Square ◽  
Southern Asia ◽  
Long Run ◽  
Western Asia ◽  
The Impact

The aim of this study is to analyze the impact of trade openness and human capital on economic growth in 19 Asian countries from 1985 to 2017. We selected two geographically distributed regions (Western and Southern Asia) based on difference in their GDP per capita. We applied the unit root tests to examine the level of stationarity and found that all variables were integrated at first difference. Kao and Fisher cointegration tests were employed and the results revealed the presence of a long-run relationship. We applied fully modified ordinary least square (FMOLS) and dynamic ordinary least square (DOLS) models to check the magnitude of the long-run coefficients among trade openness, human capital and economic growth. To investigate the direction of causality, we used a Dumitrescu and Hurlin (DH) causality test. The results indicated that trade openness and human capital have a significant and positive relationship while labor force participation has a negative effect on economic growth in Southern Asia, and in the case of Western Asia, the impact is positive. Foreign direct investment (FDI) has a negative and significant impact on GDP per capita (GDPPC) in Western Asia while it is positive and significant in Southern Asia; Total population (TPOP) has a negative impact on GDPPC in both regions. Furthermore, human capital has a positive and significant impact on trade openness in both panels. Meanwhile, labor force participation (LFP) has a positive and significant impact on trade openness in Southern Asia and a negative impact in the case of Western Asia. Trade openness and economic growth have bidirectional causality in Western Asia and unidirectional causality in Southern Asia. It also shows that human capital and economic growth have unidirectional causality in both regions.

Electronic fraud: an emerging cause of bank failure in Nigerian deposit money banks

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Folowosele Folarin Akinwale ◽  
Ikpefan Ochei Ailemen ◽  
Isibor Areghan
Keyword(s):  
Deposit Insurance ◽  
Descriptive Analysis ◽  
Secondary Data ◽  
Least Square Method ◽  
Least Square ◽  
Annual Reports ◽  
Content Type ◽  
Ordinary Least Square ◽  
Unethical Practices ◽  
The Impact

Purpose This study aims to review the degree to which fraud and other unethical practices especially in the digital space have affected the Nigerian banking industry both in the past and present, and how it will be a growing concern in the imminent future. The objective of the study was to examine the impact of electronic fraud on the quality of assets and return on assets of Nigerian deposit money banks. Design/methodology/approach The research used secondary data for the periods 2006 till 2018, which were collected from the Nigeria Deposit Insurance Corporation annual reports. Descriptive analysis and the ordinary least square method of regression analysis were used for data analysis. Findings Findings revealed that electronic fraud cases increased progressively over most of the years of study, which can be attributed to the increased bank products that are electronic-based. Originality/value Many of the reviewed literature examined electronic fraud and its impact on bank profitability but this study examined the cause of electronic fraud and what can be done to curtail it.

The Kyoto Protocol and CO2 emission: is India still hibernating?

2018 ◽  
Vol 11 (2) ◽  
pp. 152-168 ◽  
Author(s):  
Aaqib Ahmad Bhat ◽  
Prajna Paramita Mishra
Keyword(s):  
Economic Growth ◽  
Energy Consumption ◽  
Kyoto Protocol ◽  
Empirical Relationship ◽  
Trade Openness ◽  
Content Type ◽  
Long Run ◽  
Short Run ◽  
International Climate ◽  
The Impact

Purpose The purpose of this study is to investigate the relationship between CO2 emission and its core determinants, namely, economic growth, energy consumption and trade openness in the pre- and post-Kyoto Protocol era in the Indian economy. Design/methodology/approach The study uses the ARDL bounds test to analyze the long-run and short-run empirical relationship between the interested variables for the time period 1971-2013. A dummy variable representing the Kyoto Protocol regime has been included to examine the likely impact of international climate policies (Kyoto Protocol) in controlling and reducing CO2 emission in India. Findings The empirical results indicate the possibility of increase in CO2 emission from India even after the Kyoto Protocol regime. Evidence of inverted U-shaped relationship between CO2 emission and economic growth (EKC hypothesis) has been confirmed. However, compared to increase in CO2 emission, the magnitude of decrease due to improvement in economic growth is relatively lesser. Energy consumption and trade openness are also found to increase CO2 emission. Research limitations/implications The results indicate that there is a lack of commitment on the part of India to curtail CO2 emission, which can be disastrous for future prosperity. Financing the renewable electricity generation, R&D subsidy and tax-free renewable energy seems to be imperative to address this catastrophic problem. Originality/value This study is the first attempt to analyze the impact of international climate policy (Kyoto Protocol) on CO2 emission by incorporating a fixed dummy in the ARDL specifications.

Volatility of Malaysian conventional and Islamic indices: does financial crisis matter?

2020 ◽  
Vol 11 (1) ◽  
pp. 1-11 ◽  
Author(s):  
Muhamad Abduh
Keyword(s):  
Financial Crisis ◽  
Global Financial Crisis ◽  
Stock Exchange ◽  
Composite Index ◽  
Least Square ◽  
Content Type ◽  
Long Run ◽  
Short Run ◽  
The Global Financial Crisis ◽  
The Impact

Purpose This study aims to investigate the volatility of conventional and Islamic indices and to explore the impact of the global financial crisis toward the volatility of both markets in Malaysia. Design/methodology/approach The data consist of financial times stock exchange group (FTSE) Bursa Malaysia Kuala Lumpur Composite Index and FTSE Bursa Malaysia Hijrah-Shari‘ah Index covering the period January 2008-October 2014. Generalized autoregressive conditional heteroskedasticity is used to find the volatility of the two markets and an ordinary least square model is then used to investigate the impact of the crisis toward the volatility of those markets. Findings Interestingly, the result shows that Islamic index is less volatile during the crisis compared to the conventional index. Furthermore, the crisis is proven to significantly affect the volatility of conventional index in the short run and Islamic index in the long run. Originality/value This study explores the volatility–financial crisis nexus, especially for the Islamic financial markets, which to the best of the author’s knowledge, is still lacking empirical research which may improve the understanding upon this issue.

scholarly journals Impact of Capital Inflows on Economic Growth of Developing Countries

2015 ◽  
Vol 1 (7) ◽  
pp. 7-21
Author(s):  
Chigbu Ezeji E ◽  
Ubah Chijindu Promise ◽  
Chigbu Uzoamaka S
Keyword(s):  
Economic Growth ◽  
Developing Countries ◽  
Developing Economies ◽  
Positive Impact ◽  
Unit Root Test ◽  
Least Square Method ◽  
Least Square ◽  
Capital Inflows ◽  
Long Run ◽  
The Impact

This study examines the impact of capital inflows on economic growth of developing economies; the case of Nigeria, Ghana and India from 1986-2012. This is necessitated by the doubts being raised as whether the huge inflows of foreign capital in developing economies over the years have transmitted to real economic growth. Augmented Dickey Fuller unit root test was employed to evaluate the stationarity of the data, while Johansen Co-integration was used to estimate the long-run equilibrium relationship among the variables. The casual relationship was tested using Granger Causality, and Ordinary Least Square method was used to estimate the model. The findings reveals that capital inflows have significant impact on the economic growth of the three countries. In Nigeria and Ghana, foreign direct and portfolio investment as well as foreign borrowings have significant and positive impact on economic growth. Workers’ remittances significantly and positively related to the economic growth of the three countries. The enabling environment should be created in the developing countries to encourage more inflow of foreign investments and workers remittances. This will help in closing the savings-investment gap and encourage economic growth in these countries. The study signifies that capital inflows is indispensable in closing the savings-investment gap required for economic growth of developing countries.

scholarly journals The Macroeconomic Determinants and the Impact of Sanctions on FDI in Iran

2020 ◽  
Vol 34 (1) ◽  
pp. 15-34
Author(s):  
Mehdi Rasouli Ghahroudi ◽  
Li Choy Chong
Keyword(s):  
Exchange Rate ◽  
Inflation Rate ◽  
Positive Impact ◽  
Trade Openness ◽  
Macroeconomic Factors ◽  
Fdi Inflows ◽  
Long Run ◽  
Macroeconomic Determinants ◽  
The Impact ◽  
Moderating Role

AbstractWe examine the impact of the macroeconomic determinants of foreign direct investment inflows. We also investigate the moderating role of sanctions in FDI inflows into Iran. The results reveal that macro determinants such as infrastructure, exchange rate, inflation rate, investment return, and governance have a long-run effect on FDI inflows in Iran. Our findings also show that GDP growth rate and trade openness have no significant effect on FDI. Our results indicate that sanctions do not have a significant moderating role in the relationship between macroeconomic factors and FDI. Surprisingly, international sanctions have a positive relationship with FDI inflows in Iran. Furthermore, sanctions have a positive impact on the inflation rate and exchange rate in Iran. Finally, our findings show that sanctions have had a significant impact on Iran’s economic growth in recent years due to increasing the severity level of sanctions.

Sign in / Sign up

Export Citation Format

Share Document