Pub Date : 2022-09-01DOI: 10.1108/jed-05-2022-0078
P. C. Nguyen, C. Schinckus, B. Nguyen, Duyen Thuy Le Tran
PurposeThis study investigates the effect of global and domestic uncertainty on the dynamics of portfolio investment in 21 economies (mostly advanced and larger emerging economies) over the period 2001–2016.Design/methodology/approachSpecifically, the evolution of the net portfolio equity investment inflows (FPI net inflows) and the evolution of net portfolio investment (FPI net) are investigated in a context in which the degree and the volatility of domestic economic policy uncertainty (EPU) and world uncertainty index (WUI) varied. The authors provide an empirical analysis through the use of the sequential (two-stage) estimation of linear panel data models for unbalanced panel data.FindingsAn increase in the degree and volatility of domestic EPU has a significant negative influence on FPI net inflows while an increase in WUI has a significant positive one. Notably, a simultaneous increase in the domestic EPU and WUI enhances the net inflows of FPI whereas a simultaneous increase in the volatility of these indicators reduces the net inflows of FPI. An increase in the degree and volatility of both domestic EPU and WUI have significant positive effect on the net portfolio investment implying that a large net portfolio investment is going out of the country.Research limitations/implicationsThe results of this study encourage international investors to consider uncertainty indicators (and more specifically their variations) in their portfolio strategy to optimize their position on the international markets. The findings of this study invite policy makers from large countries to reduce the perceived domestic uncertainty since this parameter can influence international investors' sensitivity and willingness to diversify their position out of the country.Originality/valueThe authors' approach focuses on the variations of uncertainty (existing literature mainly works with the indicators). While the results confirm the role played by large markets in international portfolio investment management, but it nuances the changes in the portfolio management behaviors toward other markets when facing a changing uncertainty.
{"title":"International portfolio investment: does the uncertainty matter?","authors":"P. C. Nguyen, C. Schinckus, B. Nguyen, Duyen Thuy Le Tran","doi":"10.1108/jed-05-2022-0078","DOIUrl":"https://doi.org/10.1108/jed-05-2022-0078","url":null,"abstract":"PurposeThis study investigates the effect of global and domestic uncertainty on the dynamics of portfolio investment in 21 economies (mostly advanced and larger emerging economies) over the period 2001–2016.Design/methodology/approachSpecifically, the evolution of the net portfolio equity investment inflows (FPI net inflows) and the evolution of net portfolio investment (FPI net) are investigated in a context in which the degree and the volatility of domestic economic policy uncertainty (EPU) and world uncertainty index (WUI) varied. The authors provide an empirical analysis through the use of the sequential (two-stage) estimation of linear panel data models for unbalanced panel data.FindingsAn increase in the degree and volatility of domestic EPU has a significant negative influence on FPI net inflows while an increase in WUI has a significant positive one. Notably, a simultaneous increase in the domestic EPU and WUI enhances the net inflows of FPI whereas a simultaneous increase in the volatility of these indicators reduces the net inflows of FPI. An increase in the degree and volatility of both domestic EPU and WUI have significant positive effect on the net portfolio investment implying that a large net portfolio investment is going out of the country.Research limitations/implicationsThe results of this study encourage international investors to consider uncertainty indicators (and more specifically their variations) in their portfolio strategy to optimize their position on the international markets. The findings of this study invite policy makers from large countries to reduce the perceived domestic uncertainty since this parameter can influence international investors' sensitivity and willingness to diversify their position out of the country.Originality/valueThe authors' approach focuses on the variations of uncertainty (existing literature mainly works with the indicators). While the results confirm the role played by large markets in international portfolio investment management, but it nuances the changes in the portfolio management behaviors toward other markets when facing a changing uncertainty.","PeriodicalId":34568,"journal":{"name":"Journal of Economics and Development","volume":"49 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2022-09-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"77663328","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2022-09-01DOI: 10.1108/jed-04-2022-0073
Sudeshna Ghosh
PurposeThe outbreak and the spreading of the COVID-19 pandemic has impacted the global financial sector, including the alternative clean and renewable energy sector This paper aims to assess the impact of the pandemic, COVID-19 on the stock market indices of the clean energy sector using quantile regression methods.Design/methodology/approachThis study utilized daily data sets on the four major categories of stocks: (1) Morgan Stanley Capital International Global Alternative Energy Index, (2) WilderHill Clean Energy Index, (3) Renewable Energy Industrial Index (RENIXX) and (4) the S&P 500 Global Clean Index. The study adopts a multifactor capital asset pricing model.FindingsThe clean and alternative energy stocks are significant instruments for diversification. However, the impact of the volatility index induced by infectious disease is negative and significant across quantiles.Practical implicationsFor investors and policymakers, considering how uncertainty caused by COVID-19 and geopolitical index influences renewable energy markets is of great practical importance. For investors, it throws insights on portfolio diversification. For policy makers, it helps to devise strategies to reboot the economy along the lines of deployment of renewables. This study sheds light on a global green-energy transition and has practical implications for renewable energy resilience in post-pandemic times.Originality/valueThis paper can be considered as a pioneer that explores the nexus between oil prices, interest rates, volatility index, geopolitical risk upon the stock indices of clean and alternative sources of (renewable) energy in the COVID-19 pandemic situation. The results have important insights in the area of energy and policy decision-making. Additionally, the novelty of the paper lies in the use of the explanatory variables, which is associated with the COVID-19 pandemic.
{"title":"COVID-19, clean energy stock market, interest rate, oil prices, volatility index, geopolitical risk nexus: evidence from quantile regression","authors":"Sudeshna Ghosh","doi":"10.1108/jed-04-2022-0073","DOIUrl":"https://doi.org/10.1108/jed-04-2022-0073","url":null,"abstract":"PurposeThe outbreak and the spreading of the COVID-19 pandemic has impacted the global financial sector, including the alternative clean and renewable energy sector This paper aims to assess the impact of the pandemic, COVID-19 on the stock market indices of the clean energy sector using quantile regression methods.Design/methodology/approachThis study utilized daily data sets on the four major categories of stocks: (1) Morgan Stanley Capital International Global Alternative Energy Index, (2) WilderHill Clean Energy Index, (3) Renewable Energy Industrial Index (RENIXX) and (4) the S&P 500 Global Clean Index. The study adopts a multifactor capital asset pricing model.FindingsThe clean and alternative energy stocks are significant instruments for diversification. However, the impact of the volatility index induced by infectious disease is negative and significant across quantiles.Practical implicationsFor investors and policymakers, considering how uncertainty caused by COVID-19 and geopolitical index influences renewable energy markets is of great practical importance. For investors, it throws insights on portfolio diversification. For policy makers, it helps to devise strategies to reboot the economy along the lines of deployment of renewables. This study sheds light on a global green-energy transition and has practical implications for renewable energy resilience in post-pandemic times.Originality/valueThis paper can be considered as a pioneer that explores the nexus between oil prices, interest rates, volatility index, geopolitical risk upon the stock indices of clean and alternative sources of (renewable) energy in the COVID-19 pandemic situation. The results have important insights in the area of energy and policy decision-making. Additionally, the novelty of the paper lies in the use of the explanatory variables, which is associated with the COVID-19 pandemic.","PeriodicalId":34568,"journal":{"name":"Journal of Economics and Development","volume":"54 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2022-09-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"87043724","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2022-06-23DOI: 10.1108/jed-08-2021-0135
Rexford Abaidoo, Elvis Kwame Agyapong
PurposeThis study examines how institutional quality influences variability in financial development among economies in Sub-Saharan Africa (SSA).Design/methodology/approachEmpirical estimations verifying various relationships are performed using the limited information maximum likelihood (LIML) estimation technique.FindingsThe results suggest that institutional quality enhances the pace of financial development among economies in the sub-region all things being equal. In a further micro-level analysis where components of institutional quality index are examined separately, the study’s results suggest that effective governance, regulatory quality, rule of law and accountability tend to have a significant positive impact on financial sector development.Research limitations/implicationsFindings of the study suggest that policies geared towards improving governance and regulatory institutions can augment development of the financial sector among economies in SSA; governments and policymakers are therefore encouraged to resource noted institutions to play effective roles for the development of the financial sector.Originality/valueCompared to related studies, this study reorients existing paradigm, which emphasizes the role of governance and institutional variables in the economic growth discourse. The authors’ empirical inquiry rather focuses on how governance and institutional structures influence regional financial development dynamics. Specifically, this study differs from most macro-level studies found in literature because it examines the impact of hitherto unexamined governance and institutional variables on financial development among economies in SSA.
{"title":"Financial development and institutional quality among emerging economies","authors":"Rexford Abaidoo, Elvis Kwame Agyapong","doi":"10.1108/jed-08-2021-0135","DOIUrl":"https://doi.org/10.1108/jed-08-2021-0135","url":null,"abstract":"PurposeThis study examines how institutional quality influences variability in financial development among economies in Sub-Saharan Africa (SSA).Design/methodology/approachEmpirical estimations verifying various relationships are performed using the limited information maximum likelihood (LIML) estimation technique.FindingsThe results suggest that institutional quality enhances the pace of financial development among economies in the sub-region all things being equal. In a further micro-level analysis where components of institutional quality index are examined separately, the study’s results suggest that effective governance, regulatory quality, rule of law and accountability tend to have a significant positive impact on financial sector development.Research limitations/implicationsFindings of the study suggest that policies geared towards improving governance and regulatory institutions can augment development of the financial sector among economies in SSA; governments and policymakers are therefore encouraged to resource noted institutions to play effective roles for the development of the financial sector.Originality/valueCompared to related studies, this study reorients existing paradigm, which emphasizes the role of governance and institutional variables in the economic growth discourse. The authors’ empirical inquiry rather focuses on how governance and institutional structures influence regional financial development dynamics. Specifically, this study differs from most macro-level studies found in literature because it examines the impact of hitherto unexamined governance and institutional variables on financial development among economies in SSA.","PeriodicalId":34568,"journal":{"name":"Journal of Economics and Development","volume":"144 11-12 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2022-06-23","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"90682238","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2022-04-25DOI: 10.1108/jed-03-2021-0035
B. Joo, Sana Shawl, D. Makina
PurposeThis study aims to assess the impact of foreign direct investment (FDI) on growth in presence of host country characteristics, namely, economic stability, human capital, financial development and trade openness, in the fastest emerging Brazil, Russia, India, China, South Africa (BRICS) economies, considered to be significant FDI destinations.Design/methodology/approachThe panel data for the variables under study, collected from World Investment Reports published by World Bank, are analyzed using feasible generalized least squares method to examine the relationship between the dependent and explanatory variables over the period 1987–2018. The interaction effect has been studied to examine the growth impact of FDI in presence of host country characteristics.FindingsThe findings revealed that FDI does not exert a significant impact on the economic growth of BRICS individually but has a significant growth impact only in presence of host country characteristics. FDI on interacting with financial development, trade openness and human capital exerts a positive impact on the economic growth of BRICS economies, and on interacting with economic instability (inflation), FDI has a negative impact on growth.Practical implicationsThe study has implications for policy makers of BRICS countries who are suggested to work toward the development of financial markets, trade liberalization and human capital development to realize the positive growth impact of FDI.Originality/valueVery few studies have been conducted to examine the growth effect of FDI in BRICS economies, which are considered to be the fastest-growing economies and dominant players in the global investment landscape. Assessing the interaction of FDI with absorptive capacities/host country characteristics to study its growth impact in BRICS using long data and robust panel data methodology is an original contribution of this paper toward the existing body of knowledge.
{"title":"The interaction between FDI, host country characteristics and economic growth? A new panel evidence from BRICS","authors":"B. Joo, Sana Shawl, D. Makina","doi":"10.1108/jed-03-2021-0035","DOIUrl":"https://doi.org/10.1108/jed-03-2021-0035","url":null,"abstract":"PurposeThis study aims to assess the impact of foreign direct investment (FDI) on growth in presence of host country characteristics, namely, economic stability, human capital, financial development and trade openness, in the fastest emerging Brazil, Russia, India, China, South Africa (BRICS) economies, considered to be significant FDI destinations.Design/methodology/approachThe panel data for the variables under study, collected from World Investment Reports published by World Bank, are analyzed using feasible generalized least squares method to examine the relationship between the dependent and explanatory variables over the period 1987–2018. The interaction effect has been studied to examine the growth impact of FDI in presence of host country characteristics.FindingsThe findings revealed that FDI does not exert a significant impact on the economic growth of BRICS individually but has a significant growth impact only in presence of host country characteristics. FDI on interacting with financial development, trade openness and human capital exerts a positive impact on the economic growth of BRICS economies, and on interacting with economic instability (inflation), FDI has a negative impact on growth.Practical implicationsThe study has implications for policy makers of BRICS countries who are suggested to work toward the development of financial markets, trade liberalization and human capital development to realize the positive growth impact of FDI.Originality/valueVery few studies have been conducted to examine the growth effect of FDI in BRICS economies, which are considered to be the fastest-growing economies and dominant players in the global investment landscape. Assessing the interaction of FDI with absorptive capacities/host country characteristics to study its growth impact in BRICS using long data and robust panel data methodology is an original contribution of this paper toward the existing body of knowledge.","PeriodicalId":34568,"journal":{"name":"Journal of Economics and Development","volume":"48 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2022-04-25","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"86062315","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2022-04-19DOI: 10.1108/jed-09-2021-0151
Faharuddin Faharuddin, Darma Endrawati
PurposeThe study’s first aim is to estimate the scale of working poverty using a nationwide household survey. The second aim is to answer the following research questions: is working enough to escape poverty, and what are the determinants of working poverty?Design/methodology/approachThe focus is on working people in Indonesia who have per capita household expenditure below the provincial poverty line. The determinant analysis used logistic regression on the first quarter of 2013 Susenas microdata.FindingsThe study found that the scale of the working poverty problem is equivalent to the scale of the poverty, although the in-work poverty rate is lower than the poverty rate in all provinces. The logistic regression results conclude that the three factors, namely individual-level, employment-related and household-level variables, have significant contributions to the incidence of the working poor in Indonesia.Practical implicationsSome practical implications for reducing the incidence of working poverty are increasing labor earnings through productivity growth and improving workers' skills, encouraging the labor participation of the poor and reducing precarious work. This study also suggests the need to continue assisting the working poor, particularly by increasing access to financial credit.Originality/valueResearch aimed at studying working poverty in Indonesia in the peer-reviewed literature is rare until now based on the authors' search. This study will fill the gap and provoke further research on working poverty in Indonesia.
{"title":"Determinants of working poverty in Indonesia","authors":"Faharuddin Faharuddin, Darma Endrawati","doi":"10.1108/jed-09-2021-0151","DOIUrl":"https://doi.org/10.1108/jed-09-2021-0151","url":null,"abstract":"PurposeThe study’s first aim is to estimate the scale of working poverty using a nationwide household survey. The second aim is to answer the following research questions: is working enough to escape poverty, and what are the determinants of working poverty?Design/methodology/approachThe focus is on working people in Indonesia who have per capita household expenditure below the provincial poverty line. The determinant analysis used logistic regression on the first quarter of 2013 Susenas microdata.FindingsThe study found that the scale of the working poverty problem is equivalent to the scale of the poverty, although the in-work poverty rate is lower than the poverty rate in all provinces. The logistic regression results conclude that the three factors, namely individual-level, employment-related and household-level variables, have significant contributions to the incidence of the working poor in Indonesia.Practical implicationsSome practical implications for reducing the incidence of working poverty are increasing labor earnings through productivity growth and improving workers' skills, encouraging the labor participation of the poor and reducing precarious work. This study also suggests the need to continue assisting the working poor, particularly by increasing access to financial credit.Originality/valueResearch aimed at studying working poverty in Indonesia in the peer-reviewed literature is rare until now based on the authors' search. This study will fill the gap and provoke further research on working poverty in Indonesia.","PeriodicalId":34568,"journal":{"name":"Journal of Economics and Development","volume":"25 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2022-04-19","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"80043950","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2022-01-25DOI: 10.1108/jed-09-2021-0144
K. Modugu, Juan M. Dempere
PurposeThe purpose of this paper is to examine monetary policies and bank lending in the emerging economies of Sub-Sahara Africa.Design/methodology/approachThe dynamic system-generalized method of moments (GMM) that overcomes issues of unobserved period and country-specific effects, as well as potential endogeneity of explanatory variables, is applied in the estimation exercise. The study uses the data for 80 banks across 20 Sub-Saharan African countries from 2010 to 2019.FindingsThe findings show that expansionary monetary policy such as an increase in money supply stimulates bank lending, while contractionary monetary policies like increase in the monetary policy rates by the central banks lead to credit contraction, albeit a weak effect due to possible underdevelopment of financial markets, institutional constraints, bank concentration and other rigidities in the system characteristic of developing countries that undermine the effectiveness of monetary policy transmission. Capital adequacy ratio and size of economic activities are other variables that significantly influence bank lending channels.Originality/valueWhile greater empirical attention has been devoted to the nexus between monetary policies and macroeconomic variables in country-specific studies, the connection between monetary policies and bank lending at an extensive regional or cross-country level is still scanty. For Sub-Saharan Africa, there is a palpable lack of empirical evidence on this. This study, therefore, seeks to fill this gap in a region where the impact of monetary policies on credit intermediation is crucial to the economic diversification efforts of the governments of Sub-Sahara Africa.
{"title":"Monetary policies and bank lending in developing countries: evidence from Sub-Sahara Africa","authors":"K. Modugu, Juan M. Dempere","doi":"10.1108/jed-09-2021-0144","DOIUrl":"https://doi.org/10.1108/jed-09-2021-0144","url":null,"abstract":"PurposeThe purpose of this paper is to examine monetary policies and bank lending in the emerging economies of Sub-Sahara Africa.Design/methodology/approachThe dynamic system-generalized method of moments (GMM) that overcomes issues of unobserved period and country-specific effects, as well as potential endogeneity of explanatory variables, is applied in the estimation exercise. The study uses the data for 80 banks across 20 Sub-Saharan African countries from 2010 to 2019.FindingsThe findings show that expansionary monetary policy such as an increase in money supply stimulates bank lending, while contractionary monetary policies like increase in the monetary policy rates by the central banks lead to credit contraction, albeit a weak effect due to possible underdevelopment of financial markets, institutional constraints, bank concentration and other rigidities in the system characteristic of developing countries that undermine the effectiveness of monetary policy transmission. Capital adequacy ratio and size of economic activities are other variables that significantly influence bank lending channels.Originality/valueWhile greater empirical attention has been devoted to the nexus between monetary policies and macroeconomic variables in country-specific studies, the connection between monetary policies and bank lending at an extensive regional or cross-country level is still scanty. For Sub-Saharan Africa, there is a palpable lack of empirical evidence on this. This study, therefore, seeks to fill this gap in a region where the impact of monetary policies on credit intermediation is crucial to the economic diversification efforts of the governments of Sub-Sahara Africa.","PeriodicalId":34568,"journal":{"name":"Journal of Economics and Development","volume":"49 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2022-01-25","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"73635196","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2022-01-11DOI: 10.1108/jed-07-2021-0116
H. Nguyen, M. Le, C. H. Pham, Susie S. Cox
PurposeThis paper employs the theoretical foundations for subjective well-being to examine the impacts of two underlying dimensions of subjective well-being (psychological well-being and social well-being) on pro-environmental consumption behaviors (PECBs). In this research, the moderating role of exposure to positive environmental messages on media in the relationship between subjective well-being and PECBs is also examined.Design/methodology/approachThis research uses a quantitative research method with data collected from an online survey questionnaire posted in Facebook groups related to PECBs in Vietnam.FindingsPsychological well-being and social well-being are found to be separate significant predictors of PECBs. More importantly, exposure to positive environmental messages on media was found to reinforce the impacts of psychological well-being on PECB but not moderate the relationship between social well-being and PECB.Originality/valueThis research offers a new insight for encouraging PECB from the perspective of subjective well-being. Different from the extant perspectives, which usually examine subjective well-being as a unidimensional antecedent of PECB, the authors highlight that subjective well-being can influence PECB in two separate dimensions. Moreover, this research extends existing literature by accentuating the role of exposure to environmental messages in the association between different types of social well-being and PECB.
{"title":"Happiness and pro-environmental consumption behaviors","authors":"H. Nguyen, M. Le, C. H. Pham, Susie S. Cox","doi":"10.1108/jed-07-2021-0116","DOIUrl":"https://doi.org/10.1108/jed-07-2021-0116","url":null,"abstract":"PurposeThis paper employs the theoretical foundations for subjective well-being to examine the impacts of two underlying dimensions of subjective well-being (psychological well-being and social well-being) on pro-environmental consumption behaviors (PECBs). In this research, the moderating role of exposure to positive environmental messages on media in the relationship between subjective well-being and PECBs is also examined.Design/methodology/approachThis research uses a quantitative research method with data collected from an online survey questionnaire posted in Facebook groups related to PECBs in Vietnam.FindingsPsychological well-being and social well-being are found to be separate significant predictors of PECBs. More importantly, exposure to positive environmental messages on media was found to reinforce the impacts of psychological well-being on PECB but not moderate the relationship between social well-being and PECB.Originality/valueThis research offers a new insight for encouraging PECB from the perspective of subjective well-being. Different from the extant perspectives, which usually examine subjective well-being as a unidimensional antecedent of PECB, the authors highlight that subjective well-being can influence PECB in two separate dimensions. Moreover, this research extends existing literature by accentuating the role of exposure to environmental messages in the association between different types of social well-being and PECB.","PeriodicalId":34568,"journal":{"name":"Journal of Economics and Development","volume":"24 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2022-01-11","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"77044244","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2021-11-16DOI: 10.1108/jed-06-2021-0082
A. Suyunov
PurposeThe paper investigates the relationship between credit to the economy, foreign direct investment (FDI) and the unemployment rate in Uzbekistan using macroeconomic time series over 2004–2019.Design/methodology/approachThe study estimates the relationship by applying a vector autoregression model, which is considered a “workhorse” model for policy analysis to capture dynamic relationships in economic time series.FindingsThe results suggest both growth in credit to the economy and FDI Granger cause a change in the unemployment rate. The authors found 1% increase in bank credits to the economy growth decreases the unemployment rate by 0.096 pp. over eight years. On the contrary, 1% positive shock to FDI growth increases the unemployment rate by 0.0036% in the context of Uzbekistan.Practical implicationsUzbekistan should improve FDI absorptive capacity, particularly human capital and financial market development, through growth-enhancing structural reforms in the financial sector to stimulate economic growth and employment. The attracted FDI funds should focus on productive and economic sectors with high labor-absorptive capacity, such as financial and professional services, healthcare and biomedicine, creative industries and media, software sector.Originality/valueThe study contributes to the empirical literature on employment effects of FDIs and credit to the economy of Uzbekistan.
{"title":"Do foreign direct investments and bank credits affect employment in Uzbekistan?","authors":"A. Suyunov","doi":"10.1108/jed-06-2021-0082","DOIUrl":"https://doi.org/10.1108/jed-06-2021-0082","url":null,"abstract":"PurposeThe paper investigates the relationship between credit to the economy, foreign direct investment (FDI) and the unemployment rate in Uzbekistan using macroeconomic time series over 2004–2019.Design/methodology/approachThe study estimates the relationship by applying a vector autoregression model, which is considered a “workhorse” model for policy analysis to capture dynamic relationships in economic time series.FindingsThe results suggest both growth in credit to the economy and FDI Granger cause a change in the unemployment rate. The authors found 1% increase in bank credits to the economy growth decreases the unemployment rate by 0.096 pp. over eight years. On the contrary, 1% positive shock to FDI growth increases the unemployment rate by 0.0036% in the context of Uzbekistan.Practical implicationsUzbekistan should improve FDI absorptive capacity, particularly human capital and financial market development, through growth-enhancing structural reforms in the financial sector to stimulate economic growth and employment. The attracted FDI funds should focus on productive and economic sectors with high labor-absorptive capacity, such as financial and professional services, healthcare and biomedicine, creative industries and media, software sector.Originality/valueThe study contributes to the empirical literature on employment effects of FDIs and credit to the economy of Uzbekistan.","PeriodicalId":34568,"journal":{"name":"Journal of Economics and Development","volume":"66 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2021-11-16","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"89153325","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2021-10-07DOI: 10.1108/jed-04-2021-0052
Leavitt Ha, Finch Nigel
PurposeThis paper analyzes variations in effects of monetary and fiscal shocks on responses of macroeconomic variables, determinacy region and welfare costs due to changes in trend inflation.Design/methodology/approachThe authors develops the New-Keynesian model, which the central banks can employ either nominal interest rate (IR rule) or money supply (MS rule) to conduct monetary policies. They also use their budgets for capital and recurrent spending to conduct fiscal policies. By using simulated method of moment (SMM) for parameter estimation, the authors characterize Vietnam's economy during 1996Q1 -2015Q1.FindingsThe results report that consequences of monetary policy and fiscal policy shocks become more serious if there is a rise in trend inflation. Furthermore, the money supply might not be an effective instrument and using the government budget for recurrent spending produces severe consequences in the high-trend-inflation economy.Originality/valueThis is the first paper that examines the effects of trend inflation on the monetary and fiscal policy implementation in the case of Vietnam.
{"title":"Effects of trend inflation on monetary policy and fiscal policy shocks in Vietnam","authors":"Leavitt Ha, Finch Nigel","doi":"10.1108/jed-04-2021-0052","DOIUrl":"https://doi.org/10.1108/jed-04-2021-0052","url":null,"abstract":"PurposeThis paper analyzes variations in effects of monetary and fiscal shocks on responses of macroeconomic variables, determinacy region and welfare costs due to changes in trend inflation.Design/methodology/approachThe authors develops the New-Keynesian model, which the central banks can employ either nominal interest rate (IR rule) or money supply (MS rule) to conduct monetary policies. They also use their budgets for capital and recurrent spending to conduct fiscal policies. By using simulated method of moment (SMM) for parameter estimation, the authors characterize Vietnam's economy during 1996Q1 -2015Q1.FindingsThe results report that consequences of monetary policy and fiscal policy shocks become more serious if there is a rise in trend inflation. Furthermore, the money supply might not be an effective instrument and using the government budget for recurrent spending produces severe consequences in the high-trend-inflation economy.Originality/valueThis is the first paper that examines the effects of trend inflation on the monetary and fiscal policy implementation in the case of Vietnam.","PeriodicalId":34568,"journal":{"name":"Journal of Economics and Development","volume":"77 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2021-10-07","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"80793058","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2021-10-05DOI: 10.1108/jed-03-2021-0041
Umar Mohammed
PurposeThe purpose of this paper is to examine the relationship between remittances, institutions and human development (HD) in Sub-Saharan African (SSA) countries using data from 2004 to 2018. The study attempts to answer two critical questions: Do the increasing remittances inflow to the region have any effect on human capital development? and does the effect of remittances on human development vary depending on the level of institutional quality?Design/methodology/approachThe analysis uses a dynamic model; system Generalized Method of Moments (Sys-GMM) as this approach controls for the endogeneity of the lagged dependent variable; thus, when there is a correlation between the explanatory variable and the error term, which is normally associated with remittances, it also controls for omitted variable bias, unobserved panel heterogeneity and measurement errors in the estimation.FindingsThe findings indicate a positive and significant impact of remittances on HD in SSA. The results further reveal a substitutional relationship between institutions and remittances in stimulating HD. The estimations mean that remittances promote HD in countries with a weak institutional environment. The findings also establish that the marginal significance of remittances as a source of capital for HD falls in countries with well-developed institutions.Originality/valueMost empirical research on the impact of remittances on HD does not tackle the problem of endogeneity associated with remittances. This study, however, provides empirical evidence by using Sys-GMM that solves the problem. The current study also is the first work to examine the relationship between remittances, institutions and HD in SSA and provides a new guide for future research on the remittance and HD nexus.
{"title":"Remittances, institutions and human development in Sub-Saharan Africa","authors":"Umar Mohammed","doi":"10.1108/jed-03-2021-0041","DOIUrl":"https://doi.org/10.1108/jed-03-2021-0041","url":null,"abstract":"PurposeThe purpose of this paper is to examine the relationship between remittances, institutions and human development (HD) in Sub-Saharan African (SSA) countries using data from 2004 to 2018. The study attempts to answer two critical questions: Do the increasing remittances inflow to the region have any effect on human capital development? and does the effect of remittances on human development vary depending on the level of institutional quality?Design/methodology/approachThe analysis uses a dynamic model; system Generalized Method of Moments (Sys-GMM) as this approach controls for the endogeneity of the lagged dependent variable; thus, when there is a correlation between the explanatory variable and the error term, which is normally associated with remittances, it also controls for omitted variable bias, unobserved panel heterogeneity and measurement errors in the estimation.FindingsThe findings indicate a positive and significant impact of remittances on HD in SSA. The results further reveal a substitutional relationship between institutions and remittances in stimulating HD. The estimations mean that remittances promote HD in countries with a weak institutional environment. The findings also establish that the marginal significance of remittances as a source of capital for HD falls in countries with well-developed institutions.Originality/valueMost empirical research on the impact of remittances on HD does not tackle the problem of endogeneity associated with remittances. This study, however, provides empirical evidence by using Sys-GMM that solves the problem. The current study also is the first work to examine the relationship between remittances, institutions and HD in SSA and provides a new guide for future research on the remittance and HD nexus.","PeriodicalId":34568,"journal":{"name":"Journal of Economics and Development","volume":"1 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2021-10-05","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"75562353","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
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