Modern Economy

Journal Information
ISSN / EISSN : 2152-7245 / 2152-7261
Current Publisher: Scientific Research Publishing, Inc. (10.4236)
Former Publisher:
Total articles ≅ 1,334
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Latest articles in this journal

Tamburo Michael Renzi
Modern Economy, Volume 12, pp 303-316; doi:10.4236/me.2021.122016

The primary goal of this study was to establish the impacts that FDI has had on South Sudan. Based on the ethnography design, this study’s data collection approach involved a review of secondary data. The location-based approach and the institutional FDI fitness theories are the models that underpin the study. The results of the study are enlightening and intriguing. In addition to establishing that South Sudan has been unable to fully leverage FDI, the study also determined that FDI has failed to improve South Sudan’s economy and that poverty levels in the country remain high. Furthermore, it was observed that despite modest increases in FDI levels, the quality of life for the people of South Sudan is still low and the country continues to grapple with a long-running civil war that has claimed thousands of lives. The main policy implication of the study is that South Sudan needs to take steps to create a political, social, and economic environment that foreign investors will find to be appealing.
Maxime Rodrigue Sah
Modern Economy, Volume 12, pp 903-918; doi:10.4236/me.2021.125045

The objective of this research is to highlight the effects of institutional quality on environmental protection in the countries of the Economic and Monetary Community of Central Africa (CEMAC) over the period from 1996 to 2017. The analysis is carried out using dynamic ordinary least squares (DOLS) techniques to achieve this objective. The estimates are made from data from the World Bank’s World Development Indicators database. After applying these techniques, the results show that, the quality of institutions is a factor in improving environmental protection in the CEMAC countries. These results support the need for CEMAC countries to clean up their institutional arrangements by improving anti-corruption mechanisms, regulatory compliance, and government effectiveness, and to implement legal and institutional reforms to ensure that they have strong institutions to address environmental issues in this geographic area.
Chikashi Tsuji
Modern Economy, Volume 12, pp 869-877; doi:10.4236/me.2021.124043

This article conducts an overview of the performance of Japanese firm size- and firms’ investment-sorted stock portfolios from 1990 to 2020, and we derive the following contributions. First, we find that in our second half sub-period, the size effect is much clearer; while overall, the effect of investment is not so clear, suggesting that the portfolio constructions by firms’ investment are not so effective in Japan. Second, as we analyzed the performance of Japanese size- and investment-sorted portfolios using the data, which are in US dollars and for almost 30 years, our findings should be highly meaningful for both industrial practitioners and academic researchers, much deepening our understanding of stock portfolio returns and return premia in Japan.
Alexandros M. Goulielmos
Modern Economy, Volume 12, pp 597-622; doi:10.4236/me.2021.123031

In all industries, but par excellence in Shipping one, the timing process of decision-making, by its managers, is very important. We analyzed only the 8 big decisions placing them in their perfect time framework, or Perfect Timing, using historical data: (1 - 3) When to build a vessel? At what price and of what size? (4 - 5) When to buy a vessel and at what age and size? (6) When to be in the spot market? (7) When to be in the long-run (time-charter) market? (8) When to float (place an IPO) and why? The 8 big decisions had also 8 serious costs: (1) the capital and financial cost (interest, etc.). We showed the difference of borrowing at the 3-months, 6-months and 12-months LIBOR. We found-out that the rock bottom prices in building and buying ships are preferable than borrowing at rock bottom interest rates. We showed that economies of scale in new buildings, in particular, is a good thing provided analogous cargo exists. The dilemma of acting in spot or time charter market, is like playing in a roulette. For a conservative shipowner with bank loans, a time charter is preferable, but high profits (as well high losses) occur in the spot market. There are also economies of age of used ships near the latest technology (within 5 years of age). We showed how prices/costs change for every year of lower age and for every ton of larger size. We mentioned cases where bad timing was detrimental for the existence of a whole shipping company. A more novel contribution was to reveal when is the perfect timing for an IPO, using the proper net asset value-NAV.
M. Loubassou Nganga, G. Mbongo Koumou
Modern Economy, Volume 12, pp 385-400; doi:10.4236/me.2021.122020

This study aims to answer the question of whether investments have an effect on the economic diversification of the countries of the Economic and Monetary Community of Central Africa (CEMAC). The panel data used cover the period 1995-2019 and are extracted from the UNCTAD, WGI and WDI databases of the World Bank. To address the research question, we used panel data econometrics. The results obtained show that private investment improves economic diversification, while public investment hinders economic diversification in the CEMAC. These results imply 1) the need to enhance the attractiveness of private investment in all sectors of the economy and 2) the importance of improving state governance through a shift from the rentier to the developmental state.
Yifei Gong, Yue He, Daijun Xie, Jing Chen
Modern Economy, Volume 12, pp 469-476; doi:10.4236/me.2021.123024

In recent years, emerging technologies such as big data, blockchain, artificial intelligence, and cloud computing have matured. The integration of digital technology and online education promotes online education governance into the digital age. However, there are still some governance dilemmas in the digitalization process. How to solve the existing difficulties and promote the digital governance process of online education is the top priority for the development of online education. On the basis of clarifying the connotation of digital governance of online education, this paper explains the difficulties faced by online education in the digital age, and proposes the implementation path, including imperfect teaching platform and lack of supervision system, perfecting education evaluation model, establishing risk control and early warning mechanism.
Welber Tomás de Oliveira, Carlos César Santejo Saiani
Modern Economy, Volume 12, pp 17-45; doi:10.4236/me.2021.121002

This study investigates the effects of economic growth and possible political motivations in the distribution of access to public basic sanitation services in Brazilian municipalities. Along with municipality indicators relating to inequality of access associated with income and the location of households in urban or rural areas and using panel econometric estimates, three hypotheses are checked: 1) the relationship between inequality of access and municipality per capita income in an “inverted-U” shape based on the Kuznets Curve (KC); or 2) in the shape of an “N”, following KC criticisms; and 3) the relationship between inequality of access and total access in “inverted-U” suggesting a possible selectivity in public sanitation policies in Brazil. In general, the evidence obtained refutes the KC hypothesis and some evidence supports the “N” shape, especially for spatial inequalities. The evidence is more robust as regards the hypothesis of selectivity of public policies.
Daniel Ofori, George Asumadu, Isaac Mensah, Bright Amponsem
Modern Economy, Volume 12, pp 944-959; doi:10.4236/me.2021.125048

The purpose of this paper is to review the existing literature and updates on positive and negative impacts of the trend of the COVID-19 pandemic on the economy, since no permanent solution has been found. Data drawn from various sources in the form of daily briefings of health and economic experts, bulletins and reports from UN agencies and other agencies were utilised. The study serves as a contribution to insight to enable policy makers to brace for the unexpected as the world is unfolding to unprecedented in the new millennial. It was found that measures such as lockdown, travel bans, closure of schools, churches and Mosques, restaurants, and bars were adopted to control the disease in the economy, as adopted in other parts of the world. The disease harmed the economies enormously, including trade, investments, and the fall in oil prices. The use of different types of nose masks, veronica buckets and sanitizers has been found in the Ghanaian market. Nonetheless, the number of cases is still on the rise due to improper usage and contamination of nose masks by people and the discovery of new variants of COVID-19 in other places has also exacerbated the problem. Currently, there is an approved vaccine to curb the virus in the country, but only a few selected categories of citizens have received first jab and many people do not follow the laid down protocols—a concern to surmount the spread of the pandemic in the country amidst the fear of a third variant of the virus emerging.
Morlai Bangura, Augustine Ngombu, Sandy Pessima, Isatu Kargbo
Modern Economy, Volume 12, pp 1035-1058; doi:10.4236/me.2021.125053

The purpose of this study is to investigate the presence of a bank lending channel of monetary policy in the Sierra Leone. This study uses a dynamic panel data method namely generalized method of moments (GMM) procedure, employing quarterly bank-level data spanning the period 2014-2018, to empirically investigate whether or not changes in the monetary policy in Sierra Leone influence bank lending behaviour, i.e., existence of a bank lending channel. It also examines the extent to which bank-level characteristics-size, liquidity and capital-affect the effectiveness of the monetary policy. Our result revealed that the monetary policy rate significantly and negatively influences banks’ loan supply. Specifically, a 100 basis point increase in the monetary policy rate leads to a 0.43 percent decrease in loan supply to the economy. This lends support for the existence of the bank lending channel of monetary policy transmission in Sierra Leone and that banks do play a role in Sierra Leone’s monetary transmission mechanism. In addition, the interaction term between monetary policy variable and size has the positive sign and is statistically significant. The positive sign of the interaction term with size is consistent with the theoretical explanation of the bank lending channel, which assumes that lending volumes of larger banks are less sensitive to monetary policy conditions than that for smaller banks. Furthermore, commercial banks’ loan supply in Sierra Leone is also explained by past loan supply, economic activity (Real GDP) and inflation. However, we find that liquidity and bank capital do not influence banks’ loan supply. The statistical insignificance of the interaction term with capital and liquidity suggests that bank capital and liquidity are not a source of asymmetric response of banks to monetary policy stance. The main policy implications that can be gleaned from this study are that, in assessing the stance of the monetary policy, beside the Monetary policy rate, it is important for the Central Bank to monitor the micro-dynamics of individual bank characteristics, as it relates to size, in order to enhance the efficacy of monetary policy impact on the real sector in Sierra Leone.
Pierre Ghislain Batila Ngouala Kombo, Jacques Hakizimana, Charles Alexis Bouity
Modern Economy, Volume 12, pp 960-975; doi:10.4236/me.2021.125049

The objective of this paper is to analyze the impact of banking market concentration on the stability of the banking sector in the Economic Community of Central African States (CEMAC). Using panel data from 2005 to 2015 and the system GMM technique, it is found that deposit and credit market concentration have a destabilizing effect on the banking system. Thus, it would be desirable to put in place mechanisms that can help reduce the market power of certain banks to guarantee banking stability.
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