Pub Date : 2024-05-28DOI: 10.1177/22779787241245237
Samahita Phul
This article builds a Structural Vector Autoregressive model and employs non-recursive identification restrictions to examine the effectiveness of the Monetary policy transmission mechanism in India during the Flexible Inflation Targeting regime (2016–2023). The results indicate that policy rate shocks have a significant negative impact on domestic output and prices during this regime. The findings further, reveal evidence of an exchange rate puzzle during the Flexible Inflation Targeting regime. Our results give credence to the RBI’s move towards a Flexible indicator targeting approach as all the macroeconomic variables of interest, that is, Domestic output and inflation produce plausible estimates in response to a monetary policy shock.JEL Classification: C32, E52, E5, E52, F41
{"title":"Efficacy of Monetary Policy Transmission During the Flexible Inflation Targeting Regime in India","authors":"Samahita Phul","doi":"10.1177/22779787241245237","DOIUrl":"https://doi.org/10.1177/22779787241245237","url":null,"abstract":"This article builds a Structural Vector Autoregressive model and employs non-recursive identification restrictions to examine the effectiveness of the Monetary policy transmission mechanism in India during the Flexible Inflation Targeting regime (2016–2023). The results indicate that policy rate shocks have a significant negative impact on domestic output and prices during this regime. The findings further, reveal evidence of an exchange rate puzzle during the Flexible Inflation Targeting regime. Our results give credence to the RBI’s move towards a Flexible indicator targeting approach as all the macroeconomic variables of interest, that is, Domestic output and inflation produce plausible estimates in response to a monetary policy shock.JEL Classification: C32, E52, E5, E52, F41","PeriodicalId":40308,"journal":{"name":"South Asian Journal of Macroeconomics and Public Finance","volume":"49 1","pages":""},"PeriodicalIF":0.9,"publicationDate":"2024-05-28","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141171311","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 : 2023-12-11DOI: 10.1177/22779787231209169
Subhomay Saha, Chaitali Sinha, Shrabani Saha
This article is an attempt to provide a critical review of the present process of agricultural marketing in India in the wake of the recent discontent amongst the farmers that took place with the passing of the three controversial farm laws in September 2020 and giving respite to the agrarian community of the country by repealing of these new laws in November 2021. The old agricultural system of India needs to be changed. The three farm laws that were passed were of the intention to modernize the Indian agricultural market by encouraging investment and increasing competition. However, there was a country-wide protest from the farmers as they were sceptical that these laws would ultimately withdraw or reduce the security net provided by the states and put them in a vulnerable position. The present review takes a deeper dig into the present agricultural marketing situation of India in the context of the new farm laws and tries to critically evaluate the situation. JEL Classification: Q13 Q15 Q18
{"title":"Agricultural Marketing in India: Challenges, Policies and Politics","authors":"Subhomay Saha, Chaitali Sinha, Shrabani Saha","doi":"10.1177/22779787231209169","DOIUrl":"https://doi.org/10.1177/22779787231209169","url":null,"abstract":"This article is an attempt to provide a critical review of the present process of agricultural marketing in India in the wake of the recent discontent amongst the farmers that took place with the passing of the three controversial farm laws in September 2020 and giving respite to the agrarian community of the country by repealing of these new laws in November 2021. The old agricultural system of India needs to be changed. The three farm laws that were passed were of the intention to modernize the Indian agricultural market by encouraging investment and increasing competition. However, there was a country-wide protest from the farmers as they were sceptical that these laws would ultimately withdraw or reduce the security net provided by the states and put them in a vulnerable position. The present review takes a deeper dig into the present agricultural marketing situation of India in the context of the new farm laws and tries to critically evaluate the situation. JEL Classification: Q13 Q15 Q18","PeriodicalId":40308,"journal":{"name":"South Asian Journal of Macroeconomics and Public Finance","volume":"2 12","pages":""},"PeriodicalIF":0.9,"publicationDate":"2023-12-11","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"138584356","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 : 2023-12-11DOI: 10.1177/22779787231209612
Jitender Singh, Arup Mitra
This note assesses the relationship between labour productivity and employment in the framework of the unobserved component model as well as the vector autoregressive model. In the case of the organized/formal manufacturing sector in India, the transitory increase in productivity is seen to reduce the man-days in the short run, though it is not statistically significant. Permanent shock to productivity decreases labour inputs permanently, and vice versa and their association is also statistically significant. Incentivizing the firms to expand their activities, diversify production and process secondary products may help restore employment in the face of a permanent productivity shock. JEL Classification: C11, C32, E32
{"title":"Productivity Shock and Labour Input: Evidence from Correlated Unobserved Component Model","authors":"Jitender Singh, Arup Mitra","doi":"10.1177/22779787231209612","DOIUrl":"https://doi.org/10.1177/22779787231209612","url":null,"abstract":"This note assesses the relationship between labour productivity and employment in the framework of the unobserved component model as well as the vector autoregressive model. In the case of the organized/formal manufacturing sector in India, the transitory increase in productivity is seen to reduce the man-days in the short run, though it is not statistically significant. Permanent shock to productivity decreases labour inputs permanently, and vice versa and their association is also statistically significant. Incentivizing the firms to expand their activities, diversify production and process secondary products may help restore employment in the face of a permanent productivity shock. JEL Classification: C11, C32, E32","PeriodicalId":40308,"journal":{"name":"South Asian Journal of Macroeconomics and Public Finance","volume":"25 22","pages":""},"PeriodicalIF":0.9,"publicationDate":"2023-12-11","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"139010587","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 : 2023-12-08DOI: 10.1177/22779787231210743
Hrushikesh Mallick
The study explores the determinants of indirect tax mobilization across various groups of Indian states based on their major, minor categories and more and less industrialized attributes. It observes a strongly positive but differential impact of per capita RGSDP on own tax revenue efforts of various state groups. Information and Communication Technology use is only helping major less and minor more producer states in augmenting their tax revenues, whereas it results in decreased revenues for major more and minor less producing state groups including all the states in a group. This implies use of Information and Communication Technology has been less effective for most Indian states in augmenting their tax revenues. The governance quality results in loss of tax revenues in major and minor less producer states, while it has no effect on major more producer including all minor and all states together. This implies a weak role of governance in taxation. We observe differential impact of tax regimes for different state panels, which has significant policy relevance. JEL Classification: H11, H21, H27, H77
{"title":"Role of ICT, Governance Quality in Indirect Tax Revenue Productivity: A Comparative Analysis of Two Recent Indirect Tax Regimes in Indian States","authors":"Hrushikesh Mallick","doi":"10.1177/22779787231210743","DOIUrl":"https://doi.org/10.1177/22779787231210743","url":null,"abstract":"The study explores the determinants of indirect tax mobilization across various groups of Indian states based on their major, minor categories and more and less industrialized attributes. It observes a strongly positive but differential impact of per capita RGSDP on own tax revenue efforts of various state groups. Information and Communication Technology use is only helping major less and minor more producer states in augmenting their tax revenues, whereas it results in decreased revenues for major more and minor less producing state groups including all the states in a group. This implies use of Information and Communication Technology has been less effective for most Indian states in augmenting their tax revenues. The governance quality results in loss of tax revenues in major and minor less producer states, while it has no effect on major more producer including all minor and all states together. This implies a weak role of governance in taxation. We observe differential impact of tax regimes for different state panels, which has significant policy relevance. JEL Classification: H11, H21, H27, H77","PeriodicalId":40308,"journal":{"name":"South Asian Journal of Macroeconomics and Public Finance","volume":"8 20","pages":""},"PeriodicalIF":0.9,"publicationDate":"2023-12-08","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"138586444","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 : 2023-11-22DOI: 10.1177/22779787231207218
Chen Kong San, Lee Chin
This study aimed at investigating the nexus between government debt and its determinants in the context of sustainable economic growth for 97 countries over the period from 2004 to 2018 by employing a panel data quantile regression and comparing it across a fixed-effects model and a generalized method of moments (GMM) model. The different touches of debt on economic growth were analysed. The quantile regression estimates revealed that government debt has various impacts on economic growth, relying on the degree of economic performance. Government debt negatively affects economic growth across all the quantiles. More interestingly, the quantile regression estimates indicated that in countries with a very low level of real GDP per capita growth, government debt has a stronger pernicious effect on economic growth compared to upper-middle and high-income countries. Hence, our results provided insightful information for policy makers in designing appropriate fiscal policies particularly for low- and lower- middle-income countries to mitigate the negative effect on economic growth, and it should be maintained at a low and reasonable level to promote sustainable economic growth. JEL Classification: E61, E62, E63, H63, O4, O40
{"title":"Impact of Public Debt on Economic Growth: A Quantile Regression Approach","authors":"Chen Kong San, Lee Chin","doi":"10.1177/22779787231207218","DOIUrl":"https://doi.org/10.1177/22779787231207218","url":null,"abstract":"This study aimed at investigating the nexus between government debt and its determinants in the context of sustainable economic growth for 97 countries over the period from 2004 to 2018 by employing a panel data quantile regression and comparing it across a fixed-effects model and a generalized method of moments (GMM) model. The different touches of debt on economic growth were analysed. The quantile regression estimates revealed that government debt has various impacts on economic growth, relying on the degree of economic performance. Government debt negatively affects economic growth across all the quantiles. More interestingly, the quantile regression estimates indicated that in countries with a very low level of real GDP per capita growth, government debt has a stronger pernicious effect on economic growth compared to upper-middle and high-income countries. Hence, our results provided insightful information for policy makers in designing appropriate fiscal policies particularly for low- and lower- middle-income countries to mitigate the negative effect on economic growth, and it should be maintained at a low and reasonable level to promote sustainable economic growth. JEL Classification: E61, E62, E63, H63, O4, O40","PeriodicalId":40308,"journal":{"name":"South Asian Journal of Macroeconomics and Public Finance","volume":"1 1","pages":"250 - 278"},"PeriodicalIF":0.9,"publicationDate":"2023-11-22","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"139247562","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 : 2023-11-09DOI: 10.1177/22779787231204698
Utpal Kumar De, Christopher P. P. Shafuda
An analysis of the performance and efficiency of the Namibian government’s interventions after the end of the colonial era has been made in this study for the period 1990 to 2015. Using the Afonso et al. public sector performance (PSP) and public sector efficiency (PSE) method and the Stochastic frontier analysis (SFA), the findings reveal a sluggishly improving efficiency in the public sector in Namibia. However, some performance indicators showed significant improvement, while others did not record any substantial improvement. Progress is recorded in government efforts and programmes to reduce inequality and poverty, but the outputs moved at a plodding pace. Programmes and policies to reduce unemployment failed to produce the expected outcomes. Additionally, technical progress has been very slow since independence, as reflected by the technical efficiency parameter. The findings suggest a need to improve the public sector’s performance and efficiency to ensure stability and accelerate growth in the previously colonized economies with the same features as Namibia. JEL Classification: H00, H11, H89, L38
{"title":"Performance and Efficiency of Public Sector in Independent Namibia","authors":"Utpal Kumar De, Christopher P. P. Shafuda","doi":"10.1177/22779787231204698","DOIUrl":"https://doi.org/10.1177/22779787231204698","url":null,"abstract":"An analysis of the performance and efficiency of the Namibian government’s interventions after the end of the colonial era has been made in this study for the period 1990 to 2015. Using the Afonso et al. public sector performance (PSP) and public sector efficiency (PSE) method and the Stochastic frontier analysis (SFA), the findings reveal a sluggishly improving efficiency in the public sector in Namibia. However, some performance indicators showed significant improvement, while others did not record any substantial improvement. Progress is recorded in government efforts and programmes to reduce inequality and poverty, but the outputs moved at a plodding pace. Programmes and policies to reduce unemployment failed to produce the expected outcomes. Additionally, technical progress has been very slow since independence, as reflected by the technical efficiency parameter. The findings suggest a need to improve the public sector’s performance and efficiency to ensure stability and accelerate growth in the previously colonized economies with the same features as Namibia. JEL Classification: H00, H11, H89, L38","PeriodicalId":40308,"journal":{"name":"South Asian Journal of Macroeconomics and Public Finance","volume":" 8","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2023-11-09","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"135291024","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}
This article examines the relationship between ownership, leverage, and performance for Chinese small and medium enterprises (SMEs). Our study sheds light on how institutional ownership affects the performance of Chinese SMEs. We use agency and the pecking order perspective as background theories for analysing the relationships between institutional ownership, capital structure, and firm performance. We use a range of regression estimations for robustness checks and include Quantile regression, static and dynamic panel regression models, and a two-step system Generalized Method of Moments (GMM) approach to explore data covering 2009–2015. Our findings show that institutional investor’s ownership affects the performance of Chinese SMEs positively and significantly. The negative relationship between leverage and performance indicates the dominance of family ownership in Chinese SMEs, where firms rely more on retained earnings for financing, which aligns with the pecking order theory (POT) perspective. The results also suggest that institutional ownership could mitigate agency issues in Chinese SMEs.
{"title":"Institutional Ownership, Capital Structure and Performance of SMEs in China","authors":"Geeta Duppati, Rachita Gulati, Neha Matlani, Ploypailin Kijkasiwat","doi":"10.1177/22779787231196361","DOIUrl":"https://doi.org/10.1177/22779787231196361","url":null,"abstract":"This article examines the relationship between ownership, leverage, and performance for Chinese small and medium enterprises (SMEs). Our study sheds light on how institutional ownership affects the performance of Chinese SMEs. We use agency and the pecking order perspective as background theories for analysing the relationships between institutional ownership, capital structure, and firm performance. We use a range of regression estimations for robustness checks and include Quantile regression, static and dynamic panel regression models, and a two-step system Generalized Method of Moments (GMM) approach to explore data covering 2009–2015. Our findings show that institutional investor’s ownership affects the performance of Chinese SMEs positively and significantly. The negative relationship between leverage and performance indicates the dominance of family ownership in Chinese SMEs, where firms rely more on retained earnings for financing, which aligns with the pecking order theory (POT) perspective. The results also suggest that institutional ownership could mitigate agency issues in Chinese SMEs.","PeriodicalId":40308,"journal":{"name":"South Asian Journal of Macroeconomics and Public Finance","volume":" 6","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2023-11-09","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"135240986","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 : 2023-07-17DOI: 10.1177/22779787231168771
Fernanda Andrade de Xavier, P. Mukhopadhyay
This paper examines the possibility of using fiscal devolution in India to achieve the Sustainable Development Goals. We propose alternative weights and criteria to see how allocation between states would change if the Finance Commission of India (FC) used a framework that incentivizes achievements in social and environmental outcomes. Two different proposals are examined—one where level values of the female–male ratio, female literacy rate and forest cover are used to decide allocations and another where incremental values are used. The advantage of the second proposal is that it reduces historical bias. We calculate the alternative allocation that would emerge using these proposals and compare it with the actual allocation for the last three Finance Commissions—XIII to the XV. We find that the reallocation among the states incentivizes better performers and also help India achieve the goals for sustainable development. JEL Classification: H77, Q56, Q58
{"title":"Can Fiscal Transfers Help India Meet Its SDG Goals?","authors":"Fernanda Andrade de Xavier, P. Mukhopadhyay","doi":"10.1177/22779787231168771","DOIUrl":"https://doi.org/10.1177/22779787231168771","url":null,"abstract":"This paper examines the possibility of using fiscal devolution in India to achieve the Sustainable Development Goals. We propose alternative weights and criteria to see how allocation between states would change if the Finance Commission of India (FC) used a framework that incentivizes achievements in social and environmental outcomes. Two different proposals are examined—one where level values of the female–male ratio, female literacy rate and forest cover are used to decide allocations and another where incremental values are used. The advantage of the second proposal is that it reduces historical bias. We calculate the alternative allocation that would emerge using these proposals and compare it with the actual allocation for the last three Finance Commissions—XIII to the XV. We find that the reallocation among the states incentivizes better performers and also help India achieve the goals for sustainable development. JEL Classification: H77, Q56, Q58","PeriodicalId":40308,"journal":{"name":"South Asian Journal of Macroeconomics and Public Finance","volume":"1 1","pages":""},"PeriodicalIF":0.9,"publicationDate":"2023-07-17","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"47085161","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}
Purpose: The study intends to address the question, “What is the impact of the Covid-19 pandemic on stock market indices in the Colombo Stock Exchange”. This would support potential and existing investors to understand the behaviour of the stock market during the pandemic to make effective long-term decisions since there are only a few studies currently available in Sri Lankan context.Design/Methodology/Approach: A log-linear multiple regression model was executed whereby the dependent variables, All Share Price Index and S&P SL 20 index, were regressed against independent variables, daily new cases and deaths reported, fiscal and monetary policy measures implemented, and island-wide travel restrictions imposed during the period to analyze the impact of Covid-19 on the financial market over 270 days, from 27th January 2020 to 30th April 2021, covering two waves of the pandemic.Findings: The regression analysis revealed a positive relationship between the stock indices and the number of daily cases and deaths and a negative relationship with the travel restrictions imposed during the period. The policy measures implemented by the Government of Sri Lanka were insignificant in the index movements. Based on the results of this study, a positive impact on the stock indices was discovered during the pandemic; hence investors should refrain from panic withdrawals from the market.Originality: This is among the few studies to analyze the stock market performance during the Covid-19 pandemic adapted to the Sri Lankan context. The variables taken in the study can cover various aspects of the pandemic situation.
{"title":"Impact of Covid-19 on Stock Market Indices: Evidence from Colombo Stock Exchange","authors":"A. Adikari, H. Buddhika","doi":"10.4038/sajf.v3i1.52","DOIUrl":"https://doi.org/10.4038/sajf.v3i1.52","url":null,"abstract":"Purpose: The study intends to address the question, “What is the impact of the Covid-19 pandemic on stock market indices in the Colombo Stock Exchange”. This would support potential and existing investors to understand the behaviour of the stock market during the pandemic to make effective long-term decisions since there are only a few studies currently available in Sri Lankan context.Design/Methodology/Approach: A log-linear multiple regression model was executed whereby the dependent variables, All Share Price Index and S&P SL 20 index, were regressed against independent variables, daily new cases and deaths reported, fiscal and monetary policy measures implemented, and island-wide travel restrictions imposed during the period to analyze the impact of Covid-19 on the financial market over 270 days, from 27th January 2020 to 30th April 2021, covering two waves of the pandemic.Findings: The regression analysis revealed a positive relationship between the stock indices and the number of daily cases and deaths and a negative relationship with the travel restrictions imposed during the period. The policy measures implemented by the Government of Sri Lanka were insignificant in the index movements. Based on the results of this study, a positive impact on the stock indices was discovered during the pandemic; hence investors should refrain from panic withdrawals from the market.Originality: This is among the few studies to analyze the stock market performance during the Covid-19 pandemic adapted to the Sri Lankan context. The variables taken in the study can cover various aspects of the pandemic situation.","PeriodicalId":40308,"journal":{"name":"South Asian Journal of Macroeconomics and Public Finance","volume":"7 1","pages":""},"PeriodicalIF":0.9,"publicationDate":"2023-07-04","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"87801956","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}
Purpose: Money laundering can affect global macroeconomic projections, currency markets, and financial stability by fueling shadow economies. Thus, the efficiency of the Anti-Money Laundering (AML) procedure must be investigated. Understanding such elements may help prevent money laundering. This necessitates studies to raise awareness and emphasize its importance. This study sought to assess customer understanding and examine the factors that affect the efficient application of AML regulations in Nepalese banks.Design/Methodology/Approach: This study includes responses from 201 bank consumers and 156 bank employees. The study focused on customers' AML awareness and how bank employees implement AML regulations in their respective banks.Findings: According to the study, consumers apprehend money laundering, terrorist financing, and their implications. According to bank employees, customers are unaware of money laundering and its consequences. Banking and financial institutions should prioritize education and awareness to improve the implementation of anti-money laundering regulations. Control over company sophistication, business ethics, customer awareness, and the AML system all have a favorable influence on Nepali banks' AML policies. The analysis reveals that business sophistication control is quite important.Originality: The study focused on consumer and employee AML knowledge, revealing ground-level perspectives. The study found the variables related to the bank's management and compliance department's views on AML policy implementation. This research assists government agencies and policymakers in developing national anti-money laundering measures and aids academics in AML procedure implementation.
{"title":"Banks’ Level Factors Affecting the Effective Implementation of Anti-Money Laundering Practices in Nepalese Banks: An Employee and Customer Perspectives","authors":"G. Biswakarma, P. Bhusal","doi":"10.4038/sajf.v3i1.53","DOIUrl":"https://doi.org/10.4038/sajf.v3i1.53","url":null,"abstract":"Purpose: Money laundering can affect global macroeconomic projections, currency markets, and financial stability by fueling shadow economies. Thus, the efficiency of the Anti-Money Laundering (AML) procedure must be investigated. Understanding such elements may help prevent money laundering. This necessitates studies to raise awareness and emphasize its importance. This study sought to assess customer understanding and examine the factors that affect the efficient application of AML regulations in Nepalese banks.Design/Methodology/Approach: This study includes responses from 201 bank consumers and 156 bank employees. The study focused on customers' AML awareness and how bank employees implement AML regulations in their respective banks.Findings: According to the study, consumers apprehend money laundering, terrorist financing, and their implications. According to bank employees, customers are unaware of money laundering and its consequences. Banking and financial institutions should prioritize education and awareness to improve the implementation of anti-money laundering regulations. Control over company sophistication, business ethics, customer awareness, and the AML system all have a favorable influence on Nepali banks' AML policies. The analysis reveals that business sophistication control is quite important.Originality: The study focused on consumer and employee AML knowledge, revealing ground-level perspectives. The study found the variables related to the bank's management and compliance department's views on AML policy implementation. This research assists government agencies and policymakers in developing national anti-money laundering measures and aids academics in AML procedure implementation.","PeriodicalId":40308,"journal":{"name":"South Asian Journal of Macroeconomics and Public Finance","volume":"35 1","pages":""},"PeriodicalIF":0.9,"publicationDate":"2023-07-04","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"80915109","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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