176 research outputs found
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China’s monetary policy since 1948
Full text linkAbstract. China’s monetary policy has evolved from obscurity into spotlight due to its torrid economic expansion in recent times, as well as its exchange rate regime that has been under constant scrutiny of its trading partners. While China’s economy is centrally-planned, it is veering more towards a market-based system with goals of stability and growth. With this in mind, this paper is an introspection of China’s monetary policy since the establishment of the People’s Bank of China (PBC) to the present. Additionally, this paper surveys empirical literature on the effectiveness of policy tools undertaken by the PBC. Recommendations are made to Chinese monetary authority on how to navigate the turbulent waves of economic fluctuations with a managed exchange rate, within its borders and beyond.Keywords. Community tourism, Households, Island, Logistic regression, Income, Traditional trades.JEL. I13, I20, I30
Empirical analysis of relationship between investment, good governance and GDP growth rate in Pakistan (1996-2016)
Full text linkAbstract. Progress and prosperity of the nations, directly or indirectly depend on economic growth of the country. High and stable GDP growth rate indicate economic strength of the nation, which depend on various economic and non-economic factors. Investment (i.e. both private and public) provides significant contribution to the economic growth and development in a country. On the other hand, non-economic factors also play an important role in developing productive environment and enhancing productive capacity of the economy. Pakistan is a developing country and its weak and unstable economy demands high and stable GDP growth rate while it is subsisting on low and unstable GDP growth rate. Therefore, it is required to explore major economic and non-economic factors that hinder the GDP growth rate in Pakistan. In order to find out empirical impact of economic and non-economic factors on GDP growth rate in Pakistan, ARDL approach was applied on time series data during the period of 1996 to 2016. Empirical results confirmed the existence of log run relationship between dependent and independent variables. In addition, the speed of adjustment was not found to be very high (i.e. -0.35362). On the basis of study results, therefore, it is suggested that there is a need of economic reforms and implementation of effective policies that can make economy of Pakistan strong and stable, which in turn enable the country’s economy to grow faster and to compete in international market.Keywords. Private investment, Gross Domestic Product, Political stability, Corruption, Economic growth, Time series data, Pakistan.JEL. F40, F43
Expectations over durable assets: How to avoid the formation of value bubbles
Full text linkAbstract. There is a finite set of characteristics which can be present in a durable asset adding value to it, and that are not necessarily part of it in the moment of its acquisition. We represent formally how the expectations over the possible future characteristics of these goods influence its price, and get the conditions for the formation of bubbles, which allows us to propose mechanisms to avoid this kind of instinctive collective regimes. Posteriorly we extend our analysis to consider the case of monopoly and of an m-firms oligopoly producing these kinds of goods, finding that the cardinality of the firm(s)' possible plans of production to maximize benefits is the same. We show relation between the assets' prices and the cardinalities of the sets of suppliers, assets' varieties and entry consumers, with an indirect dependence on the rent labor wages. We model boundedly an analysis of the effect of tendencies like corruption on newly informed and non-Bayesian probabilities that constitute the prices. Finally, some extra provided mechanisms to avoid bubbles focus in reverting badly programed rule of thumbs, to get back to the right great rules respect.Keywords. Non-bayesian expectations, Price bubbles, Profit maximization, Competition, Corruption, Mechanism design.JEL. G12, G13, G18, G28, K42
The Impact of Technical Regulations on Trade: Evidence from South Africa
Full text linkAbstract. The purpose of this study is to investigate empirically the impact of technical barriers to trade (TBTs) by using the gravity model. The study used data from South Africa’s exports of all products and other product groupings destined to 57 selected countries which comprise both developing and developed countries. To control for misspecification error the study incorporated other explanatory variables. STATA system version 13 was used to analyse the regression of data ranging from 1995 to 2015. The results revealed that TBT notifications in general are trade restrictive. The regression results unravel that TBTs negatively affect mechanic and electrical products more than other product groupings. Accordingly for all exports in general the study’s findings are an increase in the number of TBTs has an effect of reducing exports by 4.88% on average. Given the results from the study it is imperative for South Africa to harmonise its standards with its trading partners.Keywords. Gravity model, South Africa, Technical regulation, WTO.JEL. F10, F40
Can micro credit schemes be introduced by formal banking sector?
Full text linkAbstract.The paper explains the supply side dynamics of micro credit that is about the sustainability of Micro Finance Institutions. The study suggests that formal banking sector framework should be applied to micro credit schemes to analyse their efficiency. This may help us provide a methodology unconventional to micro credit literature that can provide guidelines for successful micro credit endeavors by formal financial institutions.Keywords. Micro credit, Banking sector, Sustainability.JEL. G20, G21, G24
Globalisation, trade liberalisation and economic development in the developing countries: An overview
Full text linkAbstract. This article examines globalisation in the historical context and also its implications for development, especially in the developing countries. Economic globalisation means where all countries are developing their economies according to homogeneous rules and regulations formulated by international organisations such as the WTO, IMF and the World Bank. Globalisation refers to the opening of national markets and integration of production and increased operations of MNCs. It simply means nation-states are not able to influence exports and imports of goods and capital. And trade liberalisation is seen as a crucial policy towards globalisation. This paper will critically analyse the theoretical justification for the policy of free trade. There seems to be no doubt that globalisation has opened up a number of beneficial avenues for those countries conducive to innovation and entrepreneurship. Yet in the developing countries the fundamental problem of unemployment, income inequality and poverty persists and a more integrated economy under current globalisation has not been successful in resolving the challenges and problems facing the people in developing countries. This study concludes that the political economy of globalisation seems to be another addition to the power of global capital over national capitalist development, which reflects crisis in capitalism due to the accumulation crisis.Keywords. Globalisation, WTO, Free trade, Institutions, Developing countries.JEL. F10, F13, F60
International policy entrepreneurship and production of international public goods: the case of multilateral trade regime
Full text linkAbstract. The paper considers public goods in the realm of international governance, provides a framework explaining their provision, and applies it in the analysis of the trade policymaking in the GATT/WTO. International governance regime is seen as a public good; it is conceptualized as an equilibrium state, one where the extent of ideational and material conflicts, incongruities in policy mechanisms and the lack of institutions are substantially minimised. Such state is brought by policy entrepreneurship on the part of multiple actors. Three generic entrepreneurial functions (policy leadership, innovation and facilitation/coordination) are identified. Successful equilibration is characterized by the complementarity of entrepreneurial functions, as well as by the persistence and ingenuity of entrepreneurs in selecting and using specific means and instruments of entrepreneurship. Policy entrepreneurship is considered crucial in several areas, including problem framing, advocacy and coalition building, policy experimentation, and creation of the analytical instruments. It is also salient in moderation of conflicting positions, exercise of influence and management of the policy process.Keywords. Entrepreneurship, Public goods, Trade, International governance.JEL. F13, F50, H41, L2
New Economics Books
Full text linkA wide ranged Editor Selection of economic books published within the last 3 months by the publishers (for now; Cambridge University Press, Edward Elgar, Elsevier, MIT Press, Palgrave MacMillan, Springer, Wiley, and World Scientific) which are reached out “the consensus of no copyright infringement exists” could be found under this title. Afterwards, JEL will continue to publish the economic books published within the last 3 months as listing them in its quarter edition. This is expected to enable the journal readers to follow the related literature and be aware of the new books. The list will continue to expand as accepting the books of new co-operated publishers and personal applications. The list order is organized according to book titles’ alphabetic priority
A Review of Franchising Research in Taiwan Social Science Citation Index (TSSCI) Database
Full text linkAbstract. This study investigated the current developmental state of research on franchise systems in Taiwan. A systematic literature review was conducted, in which studies published by the Taiwan Social Science Citation Index were used as the primary data and studies related to franchise systems were analyzed. The results showed that the most common types of research conducted by Taiwanese scholars were quantitative research (56.25%), case studies (25.0%), conceptual papers (12.5%), and qualitative research (6.25%). Of all the related topics investigated by Taiwanese scholars, entrepreneur traits, motivation for joining (or opening) a franchise system; performance; business types; and knowledge, technologies, and innovations were the most frequently explored. The most common theories examined were agency (22.22%), resource scarcity (16.67%), information asymmetry (11.11%), transaction cost (11.11%), intellectual capital(5.56%), resource dependence (5.56%), dynamic knowledge creation (5.56%), resource constraint (5.56%), social identity (5.56%), risk allocation (5.56%), and communication (5.56%) theories.Keywords. Systematic literature review, Taiwanese Social Science Citation Index (TSSCI), Franchise system.JEL. M10, L33, L52
