Showing papers in "Atlantic Review of Economics in 2012"

Foreign Direct Investment and Economic Growth: Evidence from Southern Asia

Abstract: The aim of this paper is to investigate the influence of foreign direct investment (FDI) on economic growth in Southern Asia for the period 1977-2009. The Im, Pesaran and Shin (2003) unit root test shows the variables are stationary in level and Hausman (1978) test proves that we should apply the random effects model. Having estimated the model we come to the conclusion that foreign direct investment (FDI) has positive and significant effect on economic growth and variables such as human capital, economic infrastructure and capital formation have positive effect on gross domestic product (GDP). But, population, technology gap and inflation have negative effect on the economic growth.

Return performance, Cointegration and short run dynamics of Islamic and non-Islamic indices: evidence from the US and Malaysia during the subprime crisis

Abstract: This paper studies the returns difference, the long run relationship, and the short run dynamics of Islamic indices compared to non-Islamic indices in three sub periods as well as the overall period. The sub periods studied are the pre-, post and during the recent subprime crisis. The results indicate that there is no significant difference in mean returns between the Islamic indices as well as their counterparts. In terms of long run relationship or cointegration it is found that the Islamic indices were cointegrated in the pre-crisis as well as post crisis period. On the other hand the conventional indices were not cointegrated in any of the sub periods. The short run causality between the Islamic indices is a unidirectional from DJIMI towards HJ in all the sub-periods. Similarly, the conventional indices have a unidirectional causality running from DJINA towards KLCI except during the financial crisis where a bidirectional relationship exists. The result here suggests that the screening criteria of Islamic indices eliminate doubtful stocks before they fail is not accurate. In other words, if the Islamic indices screening criteria have any benefit in identifying the failing stocks they would have at least minimized the effect of the financial crisis. Therefore, investing in Islamic indices has no superiority over the conventional index in terms of performance. However, Islamic investment might have the peace of mind some investors are looking for.

Growth pattern disparities: an inter-state and intra-state analysis

Abstract: This paper explains the pattern and determinants of economic growth of major Indian states during the period of 1960-2008. Particularly, the study analyses the growth pattern of Tamil Nadu and also intra-state growth pattern. The inter-state and intra-state differentials are analyzed with the comparison of growth of per capita State Domestic Product (SDP) and per capita District Domestic Product (DDP) for the period of 1960-2008. The core objective of this study is to examine the issue of instability and volatility of growth at inter and intra state level and analyze the factors causing such disturbance in growth. Resumen El presente articulo explica la pauta y los alicientes del crecimiento economico en los principales estados de la India durante el periodo 1960-2008, haciendo especial hincapie en el estado Tamil Nadu y en su crecimiento intraestatal. Analizamos el diferencial interestatal e intraestatal junto con la comparativa de crecimiento del Producto Interior Bruto por Provincias per capita y el Producto Interior Bruto por Distritos per capita en dicho periodo. El objetivo principal de este estudio es examinar la inestabilidad y la volatilidad de crecimiento a nivel interno y entre estados, asi como analizar los factores que provocan esta discrepancia en el crecimiento economico.

La evaluación socioeconómica de proyectos: el caso de la ampliación del Sistema de Agua Potable de Pisté, Yucatán (República Mexicana)

Abstract: espanolSe evalua la eficiencia del Sistema de Agua Potable de la comisaria de Piste, Yucatan; analizando las alternativas de solucion y determinando la conveniencia de realizar los respectivos proyectos de ampliacion y mejora. El trabajo se baso en la elaboracion de una matriz del marco logico de la alternativa que resulto de la combinacion de los proyectos que atienden los problemas identificados la cual se analizo conforme al marco teorico de la evaluacion socioeconomica de proyectos de agua potable propuesto por el Centro de Estudios para la Preparacion y Evaluacion Socioeconomica de Proyectos (1977). Los calculos de la evaluacion se realizaron aplicando los principios propuestos por Iturri (2009) y Gala (2004) obteniendose los flujos netos de comparar los costos y los beneficios legitimamente atribuibles a las alternativas planteadas. Se encontro que, la evaluacion demuestra que la gente mas pobre de Piste (83 familias donde no llega la red de agua potable) es la que paga los mayores costos por obtener el agua para su consumo ($ 15.07 por m3 de agua), con el proyecto estos habitantes pagarian $ 2.45 por m3. Que para su poblacion la alternativa mas rentable desde el punto de vista social, es llevar a cabo conjuntamente la ampliacion de la red de distribucion y la construccion del tanque elevado, los indicadores de rentabilidad del proyecto revelan un Valor Actual Neto de $ 67,975 con una Tasa Interna de Retorno Social del 13.01%, asegurandose con esto un servicio de suministro continuo (de 100 l/hab./dia desde el 2009 hasta el ano 2028). Y que el proyecto tendra que incorporar el componente de la tarificacion del servicio, dado que con esto los beneficios aumentan en un 33.88%, consecuencia de que no se desperdiciaria agua, ni tampoco se incentivarian las conexiones clandestinas. EnglishIt assesses the efficiency of the drinking water system for the station of Piste, Yucatan; analyzing solution alternatives and determining the desirability of making the respective expansion and improvement projects. The work was based on the elaboration of a logical framework matrix of the alternative which resulted from the combination of the projects that address the problems identified which was analyzed in accordance with the theoretical framework of the socio-economic evaluation of drinking water projects proposed by the Studies Center for the preparation and socio-economic evaluation of projects (1977). Calculations of the evaluation were carried out by applying the principles proposed by Iturri (2009) and Gala (2004) with net flows to compare costs and legitimately attributable to the alternatives proposed benefits. It was found that, the evaluation shows that the poorest people of Piste (83 families where isn't the drinking water network) is that pays higher costs to obtain water for consumption ($ 15.07 per cubic meter of water); with the project these inhabitants would pay $2.45 per cubic meter. For its population the more cost-effective alternative from the social point of view, is to carry out jointly the expansion of the distribution network and the construction of the elevated tank, as the profitability of the project indicators reveal a net present value of $67,975 with an Internal rate of Social return of 13.01%, ensuring a service of continuous supply (of 100 lt/hab./day from 2009 until the year 2028). And that the project will have to incorporate the component of the pricing of the service, given that this benefits increase at a 33.88%, due to not waste water, nor propelled the clandestine connections.

La riqueza de los pobres. Los Microahorros

Abstract: espanolLas personas que no tienen acceso al sistema financiero tambien ahorran. En este trabajo explicamos las modalidades de ahorros mas usadas quienes no acceden a la banca formal. Como veremos, la forma del ahorro varia de una cultura a otra, de un pais a otro y de una circunstancia a otra. En la actualidad, emerge a nivel mundial el microahorro o ahorro de pequenas cantidades de dinero en instituciones de microfinanzas (IMFs), estas instituciones en su mayoria nacieron como Ongs especializadas en la oferta de microcreditos. Entre los objetivos del estudio esta el averiguar si, desde el punto de vista financiero, los ahorros de las personas pobres corren diferentes riesgos dependiendo de la IMFs en la que realicen sus depositos. EnglishPeople who do not have access to the financial system also saved. In this work we explain the most commonly used forms of savings who have no access to formal banking. As we shall see, the form of savings varies from one culture to another, from one country to another and from one circumstance to another. Currently, global emerging micro-savings or savings of small amounts of money in microfinance institutions (MFIs), these institutions, and most were born like NGOs specialized in the provision of microcredit. Among the objectives of the study is to figure out whether, from a financial standpoint, the savings of poor people are at different risks depending on the MFIs in which they conduct their deposits.

Análisis de la utilización de derivados financieros en las empresas no financieras mexicanas y su efecto en las cotizaciones bursátiles

Abstract: espanolEn este trabajo se estudia el posible efecto relativo que pueda tener la utilizacion de derivados financieros en la evolucion de la cotizacion bursatil de las empresas no financieras mexicanas, ya sea que dichos contratos sean utilizados con fines de cobertura de riesgos financieros o con fines de negociacion. En la primera parte se hace una revision de la literatura existente para analizar trabajos que han realizado otros autores hasta la fecha, seguidamente se estudia a las 25 empresas no financieras que cotizan en la Bolsa Mexicana de Valores y que forman parte del Indice de Precios y Cotizaciones. Mediante un modelo estadistico se ha contrastado y comprobado la hipotesis planteada, confirmandose que la utilizacion de derivados financieros tiene una influencia positiva y significativa sobre la cotizacion de las acciones de las empresas. EnglishIn this paper we study the possible effect it may have concerning the use of financial derivatives in the evolution of the share price of Mexican non-financial corporations, whether such contracts are used for hedging financial risks or for trading. The first part is a review of the literature to analyze work they have done to date others, then studied at 25 non-financial companies listed on the Mexican Stock Exchange and are part of the Price Index and Quotes. Using a statistical model has been contrasted and tested the hypothesis, confirming that the use of financial derivatives has a significant positive influence on stock prices of companies.

Política ambiental discrecional y bienestar social: un modelo de inconsistencia dinámica

Abstract: El trabajo evalua la presencia de inconsistencia dinamica en las decisiones discrecionales de politica ambiental y su incidencia sobre el bienestar social. Se asume que un ente ambiental minimiza una funcion de perdida de bienestar social controlando libremente, en cada periodo, una tasa impositiva por unidad de producto contaminante en su objetivo de reducir la produccion industrial y aumentar el bienestar. Con expectativas racionales sobre la tasa impositiva, se consigue un factor de sesgo instrumental que aleja los resultados optimos de lo socialmente deseado. Ademas, se espera que algun evento positivo exogeno y aleatorio sobre la estabilidad de las decisiones de politica, algun tipo de noticia favorable e inesperada, reduzca la presion tributaria e incentive la oferta industrial. En ese instante, si la tasa optima es menor a la socialmente deseada, habra una polucion mas alla de lo socialmente tolerable. Para eliminar el sesgo, se debe entablar una solucion cooperativa donde la autoridad ambiental se comprometa a aplicar una politica optima en cada periodo, con una vision de largo plazo, y la sociedad forme sus expectativas acorde con el compromiso.

Family firms' resources and the timing of the export development process

Abstract: The goal of this work is to analyze whether certain resources related to human, social and financial capital influence the speed of the export development process of family firms. We use event history analysis applied to a sample of Spanish manufacturing family firms. The results show that only the variables related to social capital have a significant effect on the timing of this process. Concretely, the relationships with foreign suppliers, the agreements with retailers and wholesalers and the development of technological collaborations are related to and early entry of family firms into the initial phase of the export development process. Moreover, the alliances with retailers and wholesalers have also a significant accelerating effect in the entry into the advanced phase of the process.