176 research outputs found
Sort by
Mitigating market risks in the ASEAN ecosystem to foster inclusive growth
Full text linkAbstract. Inclusive rather than exclusive growth is the consideration of most development strategies in charting the economic growth of their country. The ASEAN as a single market and collective body should consider this as its paramount concern. Now part of inclusive growth strategies is to identify the risks and impediments to its realization. Now generally there are two types of financial risks namely: market systemic risks and the unsystemic risk. The unsystemic risk is mitigated by the Markowitz portfolio theory that was subsequently improved by Sharpe with the Capital Asset Pricing Model (CAPM). Portfolio theory relies on the comfort of large numbers. If you have only one investment avenue and it fails then you lose all your investment but if you spread it over 40 investment destinations then you are virtually insulated provided the investments are inversely correlated. If these are positively correlated then it follows only one direction and will simulate market systemic risk. Market risk is unexplored territory. The Mexican hat wavelet theory was used to plug the unequal equation. The U.S. government used a combination of bailout plan and stimulus package that Krugman criticized since the size of the package is a hit or miss game. If it is too much then fiscal imbalance might happen that will trigger budget deficits. If too little then no stimulus will happen. Krugman proposed exchange rate modification to make your currency cheaper for exports as an improvement of the Mundell Fleming model. Economics is interrelated and interconnected and this is very evident in financial economics. Mitigating market systemic risks relies on the interdependence on interest rates, stimulus package, and foreign exchange into an algorithm that involves the Mexican hat wavelet equation.Keywords. Mitigating market risks, Mexican hat wavelet, Systemic risk, Portfolio theory, Mundell-Fleming model.JEL. C40, C50, C57
The impact of participation banks on macroeconomic indicators in Turkey
Full text linkAbstract. Demand for participation banks and participation banking instruments in Turkey is increasing its importance day by day. Along with the increase in interest for theinterest-free financial instruments in international financial markets after the second half of the 20th century, demand for interest-free financial instruments in Turkey over the past two decades has increased as well. However, the share of the Participation Banks in the financial system of Turkey’s economy is already only 5 %, which indicates that sufficient financial depth has not been achieved in this respect. From this point of view,in this study development of participation banking in Turkey and in the world and impacts of the funds extended by participation banks on real macroeconomic indicators (exports, gross domestic product, employment, household consumption expenditures and investments) are analyzed with the panel data analysis methodusing unbalanced panelquarterly data covering periods between 2010- 2017. The results of the analyses have shown that although its share in the financial system is below the expected level, funds extended by participation banks affect the indicators related to foreign trade, employment, supply and demand side of Turkey’s economy positively.Keywords. Participation banks, Macroeconomics indicators, Panel analysis, Heteroscedasticity, Autocorrelation.JEL. B22, C50, E50
The Potential Driving Forces of Wealth Accumulation by South Korea’s Leading Shipbuilding Giants: Wage-Labor Nexus and Dual-channel Capital Accumulation
Full text linkAbstract. This study explores how institutional factors increase the possibility of Korea’s three main shipbuilders’ capital accumulation and what effect institutional factors have on their capital accumulation. By examining the structural features of these shipbuilders’ labor and changes in their wage-labor nexus, the mechanisms of dual-channel capital accumulation are better understood. Ultimately, our findings show that dual-channel capital accumulation, which allows three shipbuilders to secure the practicality of overall loss minimization or overall profit maximization, has been created through the evolution of their labor structure.Keywords. Dual-channel capital accumulation, Wage–labor nexus, Korean shipbuilders, Structural transformation, Shipbuilding and offshore industry.JEL. D22, J21, J31, L62
Dynamics in Educational Outcomes by Gender: Evidence from Pakistan
Full text linkAbstract. There is strong empirical evidence that show females as a marginalized group in many aspect within Pakistan with its education sector being no different. However it is extremely important not only to document this fact but to analyze how such tendencies are evolving over time within society. This paper is an attempt in this direction, whereby in our analysis not only we assess how different are female and male population in terms of their current enrollment and attained education patterns but also in terms of structure of change in their attainment distribution as we move from older towards younger cohorts. Our findings show though gender should remain an important policy concern in domain of education sector given the prominent discrepancies in current enrolment and attained schooling estimates within male and female population, however distributional analysis of attainment patterns over age cohorts show that there is definitely some evidence of structural shifts in terms of changing economic constraints and social norms within Pakistan. This can be inferred from evidence that show much stronger inclination of higher education in younger cohorts within female attainment distribution.Keywords. Educational attainment, Gender, Age cohort analysis, Pakistan.JEL. I21, J16
Competitive Dynamics of Artificial Intelligence Economy: The Wicked Problem of Cognitive Competition
Full text linkAbstract. The competitive dynamics of the early 21st century competition are being reshaped. Much has changed in recent years as the rise of artificial intelligence is emerging as a powerful force. Less understood, but overwhelmingly felt, the change is shattering the traditional vertical boundaries. With tech firms now encroaching the traditional verticals, the need for strategic realignment is apparent. Non-tech firms are responding with acquiring tech firms. Tech firms are responding with trespassing into the non-tech domains. This creates a wicked problem for traditional non-tech firms: traditional sellers of technology are now becoming fierce competitors andtraditional non-tech firms must adapt to this new reality by developing technology of their own. This paper adds to the literature in various ways. First, the paper presents a model that captures the unique properties of artificial intelligence competition. Second, the paper argues that to stay competitive non-tech firms would need to acquire multidisciplinary innovation capability as well as embrace high-performance innovation culture.Keywords. Artificial intelligence, Cognitive competition, Business strategy, Autonomous agents.JEL. O00, O30, M00, M10, L00, L10
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
Financial Equilibrium in the Presence of Technological Change
Full text linkAbstract. This article explores the issue of observable instability in financial markets interpreted as a long-term process of adaptation to demand for money, which, in turn, is based on the expected depreciation of fixed assets. Exploration is based on verifying empirically the hypothesis that the velocity of money is significantly, negatively correlated with the pace of technological change. The purpose of exploration is to assess the well-founded of policies, which use financial and monetary tools, rather than the straightforwardly fiscal ones, to stimulate technological change. Empirical research suggests that aggregate depreciation of fixed assets is a significant factor inducing slower a circulation of money.Keywords. Money, Financial markets, Technological change.JEL. E10, E30
Factors affecting the services sector growth in Pakistan: A time varying parametric approach
Full text linkAbstract. This empirical study followed time varying parametric approach (Kalman Filter) to find out relevant determinants of Pakistan’s services sector’s growth. To our best of knowledge, no author has made such study that could collect a number of variables from existing empirical literature and capture the impact of structural changes on relevant determinants of services sector growth in Pakistan while employing Kalman Filtering approach. Current study bridges this gap. Annual data was taken from World Development Indicators (2014) during period 1976-2014. Main findings of the study are that rolling regression estimates of explanatory variables justify the use of Kalman filtering approach. The state space Results show that foreign direct investment and gross national expenditures are positive and significant determinants of services sector growth while inflation, domestic credit to private sector, gross fixed capital formation, and remittances received and trade openness have negative impact on services sector growth. One step ahead graph inflation, domestic credit to private sector, foreign direct investment, gross national expenditures, gross fixed capital formation, remittances received and trade openness indicate that model estimated was stable as critical bounds(dotted line) in graph 2 are not crossed by central line. Based on empirical findings, it is recommended the concerned authorities to augment gross national expenditures and foreign direct investment to achieve long run services sector growth for better economic growth in country.Keywords. Services sector, Kalman filter, Rolling regression, Inflation, Foreign direct investment.JEL. F21, F40, N57, O13