Journal Asian Journal of Economics and Empirical Research

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41 articles
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Hiroyuki Taguchi, Mesa Wanasilp
Asian Journal of Economics and Empirical Research, Volume 5, pp 19-28; doi:10.20448/journal.501.2018.51.19.28

Abstract:This article reviews the Thailand monetary policy rule and its performance under the adoption of inflation targeting regime since 2000. The study estimates the policy reaction function to see if the inflation targeting has been linked with an inflation-responsive monetary policy rule, and investigates whether the monetary policy rule would actually have its transmission effect on inflation, through tracing the impulse responses of inflation rate to monetary policy shocks. The main findings are as follows. The estimation outcomes of the policy reaction function show that the Thailand monetary policy rule is characterized as an inflation- and exchange-rate- responsive rule with forward-looking manner, which is countercyclical against inflation in the long run, but is accompanied with slow adjustment toward a target policy rate. The impulse response analyses imply that the Thailand monetary policy has only a marginal transmission effect on inflation probably due to the slow adjustment of policy rate.
Ayesha Serfraz
Asian Journal of Economics and Empirical Research, Volume 5, pp 36-59; doi:10.20448/journal.501.2018.51.36.59

Abstract:This study empirically analyzes the causal relationship between FDI inflows, labor productivity and education in case of Pakistan using time series data from 1971-2016. The present study concentrates only on labor productivity since Pakistan is a labor abundant country where provision of education is solely the responsibility of Government of Pakistan. For empirical analysis, it uses the latest test for measuring causality i.e., Breitung-Candelon Granger Causality test in frequency domain (both old and new versions). The traditional approach of Johansen Cointegration test has also been applied to check robustness of results. Both versions of BC test, i.e., Breitung and Candelon (2006) and Breitung and Schreiber (2016) suggest a univariate causality running from FDI to labor productivity only, whereas Johansen Cointegration approach suggests a long run relationship among three variables. Therefore government of Pakistan must give proper attention to education sector in order to gain maximum benefits from FDI inflows.
Saif Sallam Alhakimi
Asian Journal of Economics and Empirical Research, Volume 5, pp 29-35; doi:10.20448/journal.501.2018.51.29.35

Abstract:An export-led growth strategy aims to encourage producers to export their goods through various economic and governmental policies. This study was carried out with the primary objective of investigating the relationship between exports and economic growth in the Kingdom of Saudi Arabia (hereafter referred to as the KSA), specifically by examining the causality between exports and KSA’s economic growth. There are four main propositions for the relationship between exports and economic growth: export-led growth (ELG), growth-driven exports (GDE), and feedback relationships between exports and economic growth. To complete this study, samples were used based on 37 years of annual data. The study also employed a unit root test, a co-integration test, and the Granger causality test to observe the causal relationship between exports and economic growth. Data were collected for exports, which were expressed according to export growth. Economic growth, meanwhile, was measured according to gross domestic product (GDP) per capita and expressed in terms of US dollars. The result of this study found that GDP per capita significantly influenced exports, while exports did not affect GDP.
Ayesha Serfraz
Asian Journal of Economics and Empirical Research, Volume 5, pp 1-18; doi:10.20448/journal.501.2018.51.1.18

Abstract:This study empirically analyzes the effects of sector-wise FDI inflows on respective sector-wise labor productivity for a panel of seven major sectors of Pakistan’s economy covering time period of 1997-2016. For empirical analysis, sector-wise FDI inflows has been used as an independent variable while sector-wise labor productivity is a dependent variable. Initial tests conclude that LSDV fixed effects model is the most appropriate test for the data being used for empirical analysis. Further tests confirm the existence of a long-run Cointegration between these two variables. Wald test shows that a uni-directional short-run causality exists, running from sector-wise labor productivity to sector-wise FDI inflows. Pair-wise Granger-Causality test further shows that the effects of FDI inflows are not limited to one sector, rather there is an evidence of spillover effect from one sector to an-other. All empirical tests conclude that sector-wise FDI inflows positively affect sector-wise labor productivity in case of Pakistan.
Dan Lin, Yu-Wei Lan
Asian Journal of Economics and Empirical Research, Volume 4, pp 106-120; doi:10.20448/journal.501.2017.42.106.120

Abstract:This study examines the difference in performances of two business groups, Formosa Plastics Group and Far Eastern Group, under the impact of financial tsunami (2007.10.29~2017.8.10). The aim of this study is to help investors understand the operating model of business groups and use the herding effect to enhance the trading performance in financial markets. The empirical evidence shows that for the Formosa Plastics Group, the news impact curve (based on EGARCH model) including the leading company is flatter when the news impact is less than zero (that is, negative news impact) than the news impact curve excluding the leading company. In contrast, the news impact curve of the Far Eastern Group is steeper when the leading company is included. Moreover, when the leading company is included as an endogeneous variable in the model as a filter for the program trading simulation, results show that investors can profit from the Formosa Plastics Group.
Somya Tyagi, Sikandar Siddiqui
Asian Journal of Economics and Empirical Research, Volume 4, pp 61-67; doi:10.20448/journal.501.2017.42.61.67

Abstract:In this paper, two largely familiar stock market anomalies – the yield curve and the momentum effects - are re-examined for the S&P 500 index by using nonparametric regression. The results essentially confirm the existence of both of these phenomena, but also indicate that the stochastic linkages between the explanatory variables and future index returns are nonlinear and mutually dependent. It hence turns out that the greater flexibility offered by nonparametric regression enables the detection and characterisation of some features of the underlying relationship that would have been gone unnoticed under the linearity and additivity assumptions underlying simpler regression approaches.
Xiaomin Zhao, Ping Lan
Asian Journal of Economics and Empirical Research, Volume 4, pp 25-31; doi:10.20448/journal.501.2017.41.25.31

James J Tanoos
Asian Journal of Economics and Empirical Research, Volume 4, pp 1-7; doi:10.20448/journal.501/2017.4.1/501.1.1.7

Sonia Mukherjee
Asian Journal of Economics and Empirical Research, Volume 4, pp 121-131; doi:10.20448/journal.501.2017.42.121.131

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