Showing papers in "Cogent economics & finance in 2017"
TL;DR: In this article, the authors investigated the effect of economic growth on CO2 emission using the dynamic panel threshold framework, based on data from a panel of 31 developing countries and found that economic growth was associated with CO2 emissions in these countries.
Abstract: This study investigated the effect of economic growth on CO2 emission using the dynamic panel threshold framework. The analysis is based on data from a panel of 31 developing countries. The results...
332 citations
TL;DR: The relationship between trade openness and economic growth has been extensively investigated yielding to mixed and inconclusive results as mentioned in this paper, which might be attributed to the omission of the role of cap-and-trade.
Abstract: The relationship between trade openness and economic growth has been extensively investigated yielding to mixed and inconclusive results. This might be attributed to the omission of the role of cap...
260 citations
TL;DR: In this paper, the causal link between economic growth and CO2 emissions (environmental degradation), financial development, and trade openness using the ordinary least squares technique for a yearly panel data of 40 European economies, during the period of study from 1985 to 2014, was examined.
Abstract: In this paper, we empirically investigate the causal nexus between economic growth (GDP), CO2 emissions (environmental degradation), financial development, and trade openness using the ordinary least squares technique for a yearly panel data of 40 European economies, during the period of study from 1985 to 2014. To examine this causal link, we utilize the Cobb–Douglas production function. The empirical findings point to a bidirectional Granger causal linkage among GDP and pollution, GDP and financial sector development, GDP and trade openness, financial sector development and trade openness, and trade openness and pollution in the case of European economies. From the causal link between GDP and environmental pollutants, we validate the existence/confirm the validity of the environmental Kuznets curve hypothesis. Also, we confirm/bear out the feedback suggestion of the bidirectional causality among trade openness and financial sector development. Besides, we find the neutrality hypothesis linking c...
119 citations
TL;DR: In this paper, the determinants of adoption of improved maize variety (IMV) among farmers in the northern region of Ghana and subsequently assess the factors influencing the intensity of adoption.
Abstract: This study aims to identify the determinants of adoption of improved maize variety (IMV) among farmers in the northern region of Ghana and subsequently assess the factors influencing the intensity ...
82 citations
TL;DR: In this paper, the authors investigated the linkages between Research and Development (RD and board size, non-executive directors, female representation and CEO duality as board structure characteristics; and R&D expenditure volatility, employing different techniques that include OLS, fixed effects model and Quantile regression model.
Abstract: The present study sheds light on the comparative experiences of the two countries originating from differing legal systems and describes how their codes and practices affect the publicly listed firms’ performance. It investigates the linkages between Research and Development (RD and board size, non-executive directors, female representation and CEO duality as board structure characteristics; and R&D expenditure volatility, employing different techniques that include OLS, fixed effects model and Quantile regression model. The difference-in-difference model is used to verify the significance of robustness of relationships considering the global financial crisis as an exogenous shock. The descriptive statistics suggests a comparability of boards’ independence for the Spanish- and Irish-listed firms. Although the Spanish firms are less dual than Irish firms, the results are comparable on the association between CEO duality and firm performance. The findings of Spanish-listed firms on the relationship between increase and decrease in the R&D expenditures volatility and performance support the creative–destructive perspective that suggests effective governance in funding allocation to R&D.
76 citations
TL;DR: In this paper, the authors investigate the role of macroeconomic conditions and predict the base performance of a firm as represented by Return on Asset (ROA) and macroeconomic variables.
Abstract: The purpose of this study is to investigate the role of macroeconomic conditions and predict the base performance of a firm as represented by Return on Asset (ROA) and macroeconomic variables. The ...
73 citations
TL;DR: The relationship between foreign direct investment and economic growth in recipient economies remains one of the hottest debates as mentioned in this paper, as confirmed in the literature, many studies support the grow-or-stop strategy.
Abstract: The relationship between foreign direct investment (FDI) and economic growth in recipient economies remains one of the hottest debates. As confirmed in the literature, many studies support the grow...
61 citations
TL;DR: In this paper, the authors performed descriptive statistics and probit regression model to examine the farmers' access to credit: does collateral matter or cash flow matter?-evidence from Sindh province of Pakistan.
Abstract: Credit is highly demanded in different parts of the world, mainly for capital requirement to improve land, purchase of main agricultural inputs including fertilizers, seeds, pesticides, and purchase of farm machinery. The purpose of this study was to examine the farmers’ access to credit: does collateral matter or cash flow matter?—evidence from Sindh province of Pakistan. The random sampling technique was used to collected data from 300 rural households through a face-to-face interview. To find the important factors affecting access to credit in Sindh province of Pakistan, we performed descriptive statistics and probit regression model. The results of probit regression model showed that gender, household size, educational level, farming experience, farm size, income, and availability of collateral have positive effect on farmers’ access to credit, while age has a negative and statistically insignificant effect on the farmers’ access to credit. Therefore, this study recommended that institutional ...
58 citations
TL;DR: In this paper, the determinants of capital structure of public listed companies on Bursa Malaysia, Singapore Stock Exchange and Thailand Stock Exchange from 2004 to 2013 were investigated, and they also investigated how fi...
Abstract: We investigate the determinants of capital structure of public listed companies on Bursa Malaysia, Singapore Stock Exchange and Thailand Stock Exchange from 2004 to 2013. We also investigate how fi...
56 citations
TL;DR: In this article, the relationship between insurance and economic growth in 20 countries for the period 2006-2015 was examined, using three distinctive proxies such as net-wri... and net-worth measures.
Abstract: This paper examines the relationship between insurance and economic growth in 20 countries for the period 2006–2015. Insurance activity is measured through three distinctive proxies such as net wri...
43 citations
TL;DR: This paper explored the theory behind the rich and robust family of α-stable distributions to estimate parameters from financial asset log-returns data, including quantiles, logarithmic moments method, maximum likelihood (ML), and the empirical characteristics function (ECF) method.
Abstract: This paper explores the theory behind the rich and robust family of α-stable distributions to estimate parameters from financial asset log-returns data. We discuss four-parameter estimation methods including the quantiles, logarithmic moments method, maximum likelihood (ML), and the empirical characteristics function (ECF) method. The contribution of the paper is two-fold: first, we discuss the above parametric approaches and investigate their performance through error analysis. Moreover, we argue that the ECF performs better than the ML over a wide range of shape parameter values, α including values closest to 0 and 2 and that the ECF has a better convergence rate than the ML. Secondly, we compare the t location-scale distribution to the general stable distribution and show that the former fails to capture skewness which might exist in the data. This is observed through applying the ECF to commodity futures log-returns data to obtain the skewness parameter.
TL;DR: In this paper, the authors investigated the relationship between oil prices (Brent and West Texas Intermediate (WTI)) and Kuwait stock exchange (KSE) prices at the sector level.
Abstract: This paper investigates the relationship between oil prices (Brent and West Texas Intermediate (WTI)) and Kuwait Stock Exchange (KSE) prices at the sector level. In a nonlinear autoregressive distributed lag (NARDL) model, ten major sectors in Kuwait are studied using daily data from 3 January 2000 to 9 December 2015 for some sectors, and 14 May 2012 to 9 December 2015 for others. The findings show asymmetric long run effects between oil prices and some Kuwait sectoral stock prices. For these sectors, the empirical results offer evidence of short run asymmetric effect in case of WTI price measure, but no evidence of asymmetry was found in case of Brent price.
TL;DR: In this paper, a two-limit Tobit econometric model was employed to analyze the nexus between livelihood diversification and farmland management, and the results indicated that diversification has a positive and significant effect on sustainable land management activities.
Abstract: The purpose of this study was to determine whether or not livelihood diversification strategies are significant predictors of rural households’ farmland management practices. To this end, the two-limit Tobit econometric model was employed to analyse the nexus between livelihood diversification and farmland management. The study incorporated 151 farm households in Gozamin District, East Gojjam, in Ethiopia. A survey questionnaire was used to gather data. Both descriptive and inferential statistics were used as methods of data analysis. The result indicated that livelihood diversification, measured by the inverse Herfindahl–Hirschman diversity index, has a positive and significant effect on sustainable land management activities. Besides, farm households who participated in agricultural extension packages and those engaged in farm cooperatives and in non-farm wage employment activities joined significantly more in sustainable rural land management practices. The integrated rural livelihood and susta...
TL;DR: In this article, the authors investigated the authenticity of the Black's leverage effect hypothesis and the relationship between negative stock returns and the financial leverage of the UK oil and gas stocks from 2004 to 2015.
Abstract: The Black’s leverage effect hypothesis postulates that a negative stock return innovation increases the financial leverage of a firm since the value of equity decreases at a given level of debt, which, in turn, creates a higher equity return volatility in the future. The paper is aimed at investigating the authenticity of the Black’s leverage effect hypothesis and the relationship between negative stock returns and the financial leverage of the UK oil and gas stocks from 2004 to 2015. For each stock, exponential generalised autoregressive conditional heteroscedasticity model was estimated using Fama–French–Carhart 4-factor asset pricing model to extract the difference between the effects of negative and positive stock return innovations, regarded as leverage effect. The leverage effect parameter was further regressed on the financial leverage ratios of the book value of long-term debt to total assets, interest expenses to total assets and long-term debt to market value of equity to examine whether...
TL;DR: In this paper, the authors examined the impact of financial liberalization on economic growth, given the discrepancy and the gap in the literature, using a sample of 30 sub-Saharan African (SSA) countries.
Abstract: This study examines the impact of financial liberalization on economic growth, given the discrepancy and the gap in the literature, using a sample of 30 sub-Saharan African (SSA) countries....
TL;DR: In this article, the authors apply the wavelets analysis via the Continuous Morlet Wavelet Transform to delineate the significant frequency-time domain lead-lag relationships for the West African Monetary Zone member countries for real US dollar exchange rates and their absolute log returns from January 2001 to April 2015.
Abstract: In three different ways of lead–lag causal relationship, covariance/correlation and coherence, we apply the wavelets analysis via the Continuous Morlet Wavelet Transform to delineate the significant frequency–time domain lead–lag relationships for the West African Monetary Zone member countries for real US dollar exchange rates and their absolute log returns from January 2001 to April 2015. The results indicate that lead–lag associations at different periodicities vary across the countries. No one country comes off as leading conveniently for both real and absolute returns of the exchange rates. Our results corroborate other evidences of non-convergence of exchange rates in the monetary zone, which hinders the eventual implementation of the single currency in the ECOWAS region.
TL;DR: In this article, the authors investigated the impact of trade openness on economic growth volatility of Ghana from 1970 to 2013, using cointegration and error correction techniques, and found that both the long and short run economic growth variance is positively influenced by changes in trade openness.
Abstract: This paper investigated the impact of trade openness on economic growth volatility of Ghana from 1970 to 2013, using cointegration and error correction techniques. Our findings show that both the long and short run economic growth volatility is positively influenced by changes in trade openness. Volatility in domestic credit to private sector, shocks after the economic liberalization and financial openness contributed negative to economic growth volatility in the short run. The major policy implication of our paper is that developing economies should take into consideration their own realities in their trade policies to limit economic growth volatility.
TL;DR: In this paper, the authors applied technical analysis Sutte Indicator at stock market that will assist in the decision-making process in investment to buy or sell stocks, they took data from Stock of “Y” which listed in the NasdaqGS from the period 18 May 2012 to 30 August 2016.
Abstract: The aim of this study is to apply technical analysis Sutte Indicator at stock market that will assist in the decision-making process in investment to buy or sell stocks. This study took data from Stock of “Y” which listed in the NasdaqGS from the period 18 May 2012 to 30 August 2016. The performance of the Sutte Indicator can be checked with comparison with Moving Average Convergence/Divergence and Simple Moving Average. For comparison of the reliability of prediction, we can use the mean absolute percentage error, mean absolute deviation, and mean of square error.
TL;DR: In this paper, the different regional blocs already established on the continent face many challenges, such as the lack of political will, and lack of support from the international community, which hinders regional integration at the continental level.
Abstract: Regional integration is the strategy adopted at the continental level to strengthen Africa’s development. However, the different regional blocs already established on the continent face many challe...
TL;DR: In this paper, the authors examined the role of foreign capital inflows and exchange rate on the relationship between stock market development and economic growth and examined the moderating role of these factors.
Abstract: This study re-examines the stock market development and economic growth nexus. Also, examine the moderating role of foreign capital inflows and exchange rate on the relationship between stock marke...
TL;DR: In this paper, the authors investigated the dynamic linkages between trading volume and investors sentiments for the S&P500 stock exchange and found that the stock market liquidity reacts rapidly and asymmetrically to changes in overconfidence sentiment, while the optimism and pessimism sentiment has insignificant short-term impact on trading volume.
Abstract: This paper investigates the dynamic linkages between trading volume and investors sentiments for the S&P500 stock exchange. Two sentiment indicators are considered, the overconfidence and the net optimism-pessimism indicator. Non-linear dynamic approach, namely the asymmetric autoregressive distributed lag (NARDL) model is used to capture the long-term and short-term non-linear connections between the investor sentiment and the stock market liquidity. Empirical findings suggested an asymmetric long-term market liquidity reaction to investor sentiment. In the short-term, the stock market liquidity react rapidly and asymmetrically to changes in overconfidence sentiment, while the optimism and pessimism sentiment has insignificant short-term impact on trading volume.
TL;DR: The authors argue that South Korean families with children are today overinvesting in the level of education due to their high levels of expenditures on private after-school tutoring programs, and argue that this situatio...
Abstract: We argue that South Korean families with children are today overinvesting in the level of education due to their high levels of expenditures on private after-school tutoring programs. This situatio...
TL;DR: In this article, the authors focused on analyzing and differentiating the determinants of conventional insurance and Takful demand across ASEAN and Middle East Regions, and applied fixed and random effect regression models to assess the impact of macroeconomic and demographic factors on conventional insurance demand.
Abstract: In this study, we focused on analysing and differentiating the determinants of conventional insurance and Takāful demand across ASEAN and Middle East Regions. We used panel data econometrics on a sample of 14 Asian countries having both conventional insurance and Takāful over the period 2005–2014. We applied fixed and random effect regression models to assess the impact of macroeconomic and demographic factors on conventional insurance and Takāful demand. Income and financial sector were found to have significant positive impact on insurance demand across all regions. On the other hand, dependency ratio was found to be negatively affecting Takāful demand across all regions while inflation shows positive impact. Urbanization was found to be significant positive impact on both conventional insurance and Takāful demand. Financial sector development positively triggers the insurance and Takāful demand across ASEAN region, while it triggers conventional insurance demand only in Middle East Region. Educ...
TL;DR: This paper examined the effect of relative economic distance (RED) between countries on bilateral foreign trade and foreign direct investment (FDI), using Vietnam as a case study, and found that the difference in RED between countries can be significant.
Abstract: This study examines the effect of relative economic distance (RED) between countries on bilateral foreign trade and foreign direct investment (FDI), using Vietnam as a case study. The difference in...
TL;DR: In this article, the mediating role of social networks in the relationship between financial intermediation and financial inclusion of poor households in rural Uganda was examined, and the authors used SPSS (statis...
Abstract: The paper examined the mediating role of social networks in the relationship between financial intermediation and financial inclusion of poor households in rural Uganda. The paper used SPSS (statis...
TL;DR: In this paper, the authors investigated the causal relationship between poverty reduction and foreign direct investment (FDI) inflows in South Africa using time-series data from 1980 to 2014 and found a distinct unidirectional causality from poverty reduction to FDI in both the short run and the long run when poverty reduction is measured by life expectancy and infant mortality rate.
Abstract: This study investigates the causal relationship between poverty reduction and foreign direct investment (FDI) inflows in South Africa using time-series data from 1980 to 2014. The main objective of this study is to establish the direction of causality between FDI and poverty reduction, which is important to policy-makers as it identifies which variable to target first. Gross domestic product is included as an intermittent variable giving a trivariate framework. Employing the autoregressive distributed lag (ARDL) bounds testing approach to cointegration and ECM-based causality tests, the results from this study reveal a distinct unidirectional causality from poverty reduction to FDI in both the short run and the long run when poverty reduction is measured by life expectancy and infant mortality rate. However, the study failed to find any causality, irrespective of the time considered, when poverty reduction is measured by household consumption expenditure. It can be concluded therefore, that the ca...
TL;DR: The authors take a complementary, comparative approach, examining theory deve... and examine the ability of models to provide explanations in the context of economic models and their ability to explain economic models.
Abstract: Models have been extensively analysed in economic methodology, notably their degree of ability to provide explanations. This paper takes a complementary, comparative approach, examining theory deve...
TL;DR: The authors examined the determinants of European bank risk-taking during major financial crisis using a sample of banks from 26 countries over the period 2005-2015, and examined the nature of the re...
Abstract: This paper examines the determinants of European bank risk-taking during major financial crisis. Using a sample of banks from 26 countries over the period 2005–2015, we examine the nature of the re...
TL;DR: In this article, the authors investigated the impact of Muslim Holy Days on daily stock returns of Asian financial markets for a period of 2001-2014, and found that Islam has a significant positive effect on stock returns while all other Holy Days have no effect.
Abstract: This study investigated the impact of Muslim Holy Days on daily stock returns of Asian financial markets for a period of 2001–2014. These markets include Pakistan, Bahrain, Saudi Arabia, and Turkey. The study has tried to isolate the effect of Gregorian calendar anomalies from Muslim Holy Days to certify that the documented effect is actually a result of Muslim Holy Days rather than Gregorian calendar anomalies. Pooled fixed/random effect Panel Regression is used to check the underlined effect. The results reveal that Eid-ul-Fitr is the only Holy day, which has significant positive effect on stock returns of Asian markets, while all other Holy Days have no effect. Friday is the only Gregorian calendar anomaly, which exists in Asian markets. These results provide support to the fact that both Islamic and Gregorian calendar anomalies exist in Asian markets.
TL;DR: In this paper, the authors examined the influence of firm-specific determinants of stock prices in an emerging market with particular reference to firms listed on the Ghana Stock Exchange and found that accounting information, specifically earning per share, return on equity, book value and market capitalization of the firms, is relevant in explaining stock prices after the adoption of International Financial Reporting Standards (IFRS).
Abstract: This study seeks to examine the influence of firm-specific determinants of stock prices in an emerging market with particular reference to firms listed on the Ghana Stock Exchange. The study employs a data-set from all listed firms on the Ghana Stock Exchange from 2008 to 2014. The study used panel regression analysis to analyse the data. In general, the study found that accounting information, specifically earning per share, return on equity, book value and market capitalization of the firms, is relevant in explaining stock prices after the adoption of International Financial Reporting Standards (IFRS) in Ghana. This study contributes to the ongoing debate on the firm-specific factors influencing share price in an emerging market with particular reference to Ghana Stock Exchange. It is recommended that the Directors of the firms listed on the Ghana Stock Exchange introduce policies which would have a positive impact on their return on equity and earnings per share to significantly influence their...