Sutiah Na
The Climate change increases the risks to financial stability across economies, by exposing economic activity, assets and capital flows to exogenous shocks. This paper argues for �??Circular Monetary Economics�?�, an approach to monetary policy that seeks to green and prudentially insulate the design and implementation of liquidity and credit facilities. Central banks repo market operations and liquidity infusions occasion a structural liquidity mismatch in financial markets, but could be sued to incentivise the transition towards a greener economy. By aligning credit growth and standards with central bank liquidity, commercial banks will be incentivised to green and insulate their portfolios against extreme climate events. Circular monetary economics will lessen the probability of cross-asset contamination within financial institutions and contagion within the broader financial system, whilst simultaneously improving the transmissions from changes in the policy rate as well as macro-prudential regimes in the event of a climate or credit-driven financial shock.
Jean Bosco Harelimana
This study examines the impact of Umurenge SACCOs to financial inclusion in Rwanda. Secondary data which are time series were analyses with objectives to find out whether U-SACCO have impact to financial inclusion with baseline to 3 dimensions of Quality, accessibility and usage are dimensions of financial inclusion. This study used descriptive analysis and both excel and STATA used in computing data. The finding of this study demonstrated the positive impact of U-SACCOs to financial inclusion. However, government should put more attention on quality of financial service in SACCOs by automating of all SACCOs.
Bensethom Emna*
The aim of this paper is to study the potential effect of the financial integration and market microstructure in informational efficiency, in the context of the global financial crisis of 2008-2009. Our sample comprises ten developed and African emerging markets over the period from 2003 to 2012. Using the same methodology adopted, our findings show several interesting facts. First, the markets that are more integrated with the US market are also more efficient. Moreover, this significant and positive association is established in both subgroups of developed and African stock markets. Second, the relationship between informational efficiency and financial integration loses its explanatory power over the global financial crisis period and during which African emerging markets seem to be more volatile than their developed counterparts. Overall, our results confirm that the potential benefits of financial integration process are important in the African region, which might attract foreign investors hoping not only to maximize the expected return of their portfolio but also to minimize the associated risk.
Henri Kouam
Increases in the atmospheric concentration of carbon have significant adverse environmental and socio-economic implications, more so for developing with little climate-centric infrastructure. This paper investigates the salience of renewable energy in addressing climate risks and forming the basis of an innovation-centric growth model. It analyses the prevalence of knowledge spillovers in Cameroon using patents as a proxy for innovation and drawing from a broad-based international literature spanning. The study finds a propensity for knowledge spillovers, which occur from renewable energy to innovation due to learning-by-doing. Additionally, spatial distributions of knowledge clusters are found to result from tacit circulation of technological information within and across industries. The paper finds the need for policymakers to prioritize climate-centric infrastructure to lessen environmental externalities and redress socio-economic and regional imbalances. Meanwhile, second-round effects will incite cross-industry applications from Renewable energy technologies (Rets) and achieve broader development and socio-economic objectives ranging from poverty reduction, innovation and sustainable economic growth.
Almahdi Musa Attahir Musa1*, Omer Abdelrahman Mohammed Mansour2
The paper aimed to assessment the structural adjustment policies in Sudan. The paper problem was formulated in following main question: What were the most important objectives of structural adjustment policies and programs? The paper was based on the following main assumption: Structural adjustment policies and programs in Sudan have not achieved the desired goals. The paper used the descriptive and analytical approaches. The study reached that GDP, Per Capita (PC) and External Debt (ED) had inverse impact on Economic Growth (EG), while inflation rate and Real Effective Exchange Rate (REER) they had a direct impact on (GR). The paper recommended that the necessity of evaluating the structural adjustment policies to know the reasons for their failure, and then adopting
alternative policies that.
Edwin Kipyego Kipchoge
The linear relationship between time series variables is normally assumed to be stationary or simply the mean and variances do not change over time and the covariance of a variable and its lagged values are constant over time. In real situations there are some major events that can influence the fluctuations of such time series variables. Structural changes can identify whether the linear relationship between independent and dependent variable changes over some time t. The main purpose of this paper is to highlight some of the major structural breaks in tobacco consumption in Kenya for the period 1980 to 2016. The data used was extracted from Kenya National Bureau of Statistics (KNBS) and Government statistical abstracts. The independent variables are the prices of tobacco both before and after tax and per capita income. The Zivot-Andrews test was applied to test one structural break, but Clement-Montane and Reyes test was used to identify the multiple structural changes. The results obtained were presented in a table form and figure for visual identification. Zivot Andrews showed that there were major and significant structural breaks in tobacco consumption in the year 2007(t-statistic value is -6.366), prices before tax in the year 1999(t-statistic value is -4.882) and per capita income had a break year 2006 (t-statistic value is -2.627). Clement Montane and Reyes results indicated that the variables under study had significant break years (p-values were less than 5 per cent significance level). Based on the results obtained, the consumption of tobacco had two major break structural breaks in the year, 1994 and 2003, similarly the income per capita break years were 1999 and 2009, also, the prices before and after-tax break years were in 1996 and 2003, and in 1995 and 2009 respectively. This structural change is an important observation in analysis as it improves the efficiency of the estimates and assist researchers and governments to identify policies that can help reduce tobacco use, reduce diseases associated with tobacco for a functional healthy nation.
Wilfred Awung Ndongko and Ismaila Amadu
This paper critically assessed some employment poverty reducing strategies put in place in Africa. From the assessment, it was realized that the strategies did not adequately contribute to generate decent and well remunerating jobs that could substantially curb poverty. As a result of this limited success of the strategies was partly attributed to limited public investments, inadequate planning and execution of development projects, dreadful mismanagement and poor allocation of resources, etc. Consequently, Africa habours about half of the world’s poor, vulnerable and underprivileged population. Thus, in an effort to reverse the situation, it is recommended that African countries should: provide professional and scientific training and education which is relevant to the needs of their economies; put in place a range of incentives which would attract foreign investments that will transform their primary and agricultural products locally; promote the intensive use of labour in implementing sustainable projects; and increase their investment in Science, Technology and Innovatio.
Iram Rani, Minhoon Khan Laghari, Hira Rani Shaikh and Muhammad Asif Channa
This Study intends the assessment of micro loan by U microfinance from females of upper Sindh. The core objective was to assess the impact of U-Microfinance on poverty level of female for improving their living standards by providing them micro loans to be used for their small-scale business which could enable them to be empowered politically, socially, economically, and assessing its impacts on the health and education of their families. Therefore, this Study was conducted on assessment of microloan interventions of U Micro finance in the rural areas of upper Sindh. Quantitative approach used to measure the impact of micro loan on the poverty status of the female along with a qualitative study to further confirm the findings. In this study quasi experimental design was used in which two groups of data from the same respondents assuming the data ‘Before-loan and After-Loan Situation’ from the female borrowers of Khairpur, Sukkur, Shikarpur, Larkana and Dadu Districts of Upper Sindh. Poverty Score Card was used as a survey instrument originally developed by World Bank for each region separately. The indicators used in questionnaire were education of self and children, number of family members, rooms in the house, basic household facilities to advanced i.e. washing machine, cooking stove heater, Air Conditioner and television along with indicators of other assets like live Stock, engine driven vehicles and agricultural land.
The oil price variations affect the economy of all countries. In 2006, Brazil discovered important oil reserves in the so-called pre-salt and became an important producer. Consequently, it became more affected by fluctuations in the price of this commodity. The impact of changes in oil price on a country's economy can be assessed by looking at its relationship with the economic indicators. The objective of the study was to identify patterns and relationships between the oil price and the following Brazilian economic indicators: Gross Domestic Product (GDP), Trade Balance, Inflation, Tax Collection, and Unemployment Rate. After collecting quarterly data for the last 20 years, between 2000 and 2019, it was applied the statistical tests of Cross-Correlation, Granger Causality, and Cointegration. The cross-correlation test showed that increases in the oil price are moderately associated with increases in GDP and Tax Collection. Oil prices and Inflation showed a weak negative correlation, not showing association. The correlation between oil prices and unemployment was negative moderate, indicating that the increases in oil prices are associated with the fall in employment. Finally, the correlation between oil prices and the Trade Balance varied from negative to positive. Evidence of Granger’s causality was found only between the oil price series causing GDP. And it was not found cointegration in any series, which indicates non-existent long-term relationships. The identification of patterns and relationships between oil prices and economic indicators contributes to the adoption of
Customer loyalty is one of the keys to establishing a sustainable business in apparel B2C e-commerce, and it is influenced tremendously by customer’s online shopping experience. In this paper, we conducted a survey on customer experience, alternative attractiveness, and customer loyalty, and created a model to analyze the associations among these attributes. Customer experience was measured from five dimensions: website, product, service, brand and emotion. In the analytical model, the dimensions of customer experience were taken as independent variables, customer loyalty as a dependent variable, and alternative attractiveness as a moderating variable. Correlation and regression analyses were performed to assess the impacts of customer experience and alternative attractiveness on customer loyalty. Based on the survey data of 250 validated questionnaires, it was found that customer loyalty is significantly correlated with all the five dimensions of customer experience and with alternative attractiveness. Among the five dimensions of customer experience, service, emotion, and product experiences have slightly higher correlations than website and brand experiences. Alternative attractiveness has a small negative correlation with on customer loyalty.
This study examines how three external governance mechanisms interact with the internal family-governance system to influence dividend payout decisions. The findings indicate that family businesses deliver fewer dividends when the market prefers dividends. Contrarily, family firms release more dividends under greater monitoring from institutional investors and debt holders. The study expands various theories and generates policy implications.
D. Subalakshmi* and K. Prabhakar Rajkumar
DOI: 10.37421/2151-6219.2022.13.412
The invariable development of the financial market in the contemporary world encourages advancements in different forms of financial instruments. While derivative trading has become an important element of the stock market in recent years, the significant volatility of option pricing has resulted from the massive increase in stock market activity. A derivative is a type of financial product that attracts investors from all over the world. When two or more buyers/sellers have a contract whose value is based on a fundamental asset, each change in the value of the underlying has a corresponding change in the value of the derivative contract. For fair value pricing of options contracts, the Black-Scholes option model is often used. The pricing efficiency of options is investigated in this study by utilizing Greeks and Black-Scholes model values in the Nifty Index. This study aim of this study is to determine the most significant association between BSOPM (Black-Scholes Options Pricing Model) and actual market pricing by using Greeks.
Index options are tremendously risky and gainful derivatives, which are influenced by specific market variables like index value, time to expiration, strike price, interest rate, underlying index value, etc. We calculated the call option price, put option price, and Greeks of Nifty option using the Black Scholes model for November 2018. Greeks-delta, gamma, theta, vega, and rho are analyzed concerning their impact on options positions of each strike price, through which we tried to understand and measure different dimensions of risk involved in Nifty index option positions. The study concludes that the option values have an irrelevant consequence on the market values.
DOI: 10.37421/2151-6219.2024.15.483
Economic growth is the lifeline of any nation, driving prosperity, innovation, and societal well-being. Behind every thriving economy lies a complex network of policies and strategic planning, acting as the catalysts for sustainable development. These economic engines, encompassing a range of initiatives and frameworks, fuel the growth trajectory of nations, steering them towards greater productivity and competitiveness in the global arena. In this article, we delve into the critical role of policy and planning in powering economic engines, exploring how they shape the landscape of growth and prosperity. At the core of economic engines lies the concept of productivity enhancement and resource utilization. Economic engines encompass a broad spectrum of factors including investments in infrastructure, human capital development, technological innovation, and regulatory frameworks. These components work synergistically to drive economic activity, create employment opportunities, and foster innovation and entrepreneurship.
DOI: 10.37421/2151-6219.2024.15.484
Economic equilibrium is the delicate state where supply and demand intersect, creating stability in markets. It's the point where the quantity demanded by consumers matches the quantity supplied by producers, establishing a fair price and quantity for goods and services. Achieving and maintaining this equilibrium is crucial for the smooth functioning of economies, as it ensures efficient allocation of resources and maximizes societal welfare. However, attaining equilibrium isn't always straightforward, as various factors such as consumer preferences, technological advancements, and government policies influence supply and demand dynamics. In this article, we delve into the mechanisms of economic equilibrium, exploring how markets reach balance and the role of policy interventions in maintaining stability.
DOI: 10.37421/2151-6219.2024.15.485
DOI: 10.37421/2151-6219.2024.15.486
In the intricate dance of global economics, policymakers continually strive to achieve a delicate balance between stability and growth. The interplay of various factors – from fiscal and monetary policies to geopolitical events and technological advancements – shapes the economic landscape. In this article, we delve into the essential macroeconomic insights that can guide policymakers in navigating the complexities of economic policy to foster stability and fuel sustainable growth. Macroeconomics, the study of the broader economic aggregates such as national income, unemployment rates, and inflation, provides a lens through which policymakers can analyze and influence economic phenomena. At its core, macroeconomics seeks to address fundamental questions about the functioning of an economy.
DOI: 10.37421/2151-6219.2024.15.487
DOI: 10.37421/2151-6219.2024.15.488
DOI: 10.37421/2151-6219.2024.15.489
DOI: 10.37421/2151-6219.2024.15.491
DOI: 10.37421/2151-6219.2024.15.482
DOI: 10.37421/2151-6219.2022.13.410
We look into the how college economics courses affect students' ability to make decisions. We are able to isolate the treatment effects of an economics education on students' responses to a decision-making survey by taking advantage of a Chinese college admissions system that assigns students to economics/business majors based on preferences and the cut-off scores for those majors on the College Entrance Exam. We specifically compare the survey responses of students who just barely meet the cut-offs for majoring in economics or business to those of students who do not, and we discover that those who have taken economics or business courses are more likely to be risk averse and less likely to be subject to common biases in probabilistic beliefs.
DOI: 10.37421/2151-6219.2022.13.411
Since Arrow's foundational essay on health economics from 1963, the scale of the health-care sector, the share of public finances allocated to health care, and the body of research on health economics have all expanded rapidly. The need for health insurance was sparked by Arrow's emphasis on the significance of uncertainty. The theoretical growth of health economics was supported by later advances in information economics, such as the potential of no equilibrium in the insurance market due to selection. Arrow also stressed the doctor's function as the patient's agent, and much later research examined the influence of the doctor's financial and other incentives on behaviour.
DOI: 10.37421/2151-6219.2022.13.412
DOI: 10.37421/2151-6219.2022.13.413
DOI: 10.37421/2151-6219.2024.15.492
The choice between debt and equity financing is a fundamental decision for businesses, impacting their risk profile, cost of capital, and overall financial health. This paper analyses the optimal capital structure for businesses by examining the advantages and disadvantages of debt and equity financing. Through a comprehensive review of existing literature and empirical data, we identify key factors that influence capital structure decisions and provide insights into how businesses can navigate the complexities of financing to maximize shareholder value and sustain longterm growth.
DOI: 10.37421/2151-6219.2024.15.493
The evolution of capital structure is a critical area of study within corporate finance, reflecting how firms balance debt and equity to optimize their financial performance and strategic goals. This paper examines the historical trends and determinants influencing capital structure in the modern economy. Through a comprehensive review of existing literature and empirical data, we identify key factors such as market conditions, regulatory environments, technological advancements, and firm-specific characteristics that shape capital structure decisions. Our analysis highlights the dynamic nature of capital structures and provides insights into how contemporary economic shifts influence corporate financing strategies.
DOI: 10.37421/2151-6219.2024.15.494
DOI: 10.37421/2151-6219.2024.15.501
This paper explores the determinants of economic growth in developing countries, analysing both the drivers and barriers to sustained growth. Using a panel data set covering 50 developing countries from 1995 to 2020, we employ an econometric model to identify key factors influencing growth, such as investment in human capital, infrastructure development, political stability, and trade openness. Our results indicate that while investment in education and infrastructure are significant drivers of economic growth, political instability and inadequate institutions pose substantial barriers. The findings suggest that policy interventions aimed at enhancing education, infrastructure, and governance are crucial for fostering long-term economic growth in developing countries.
DOI: 10.37421/2151-6219.2024.15.496
DOI: 10.37421/2151-6219.2024.15.497
DOI: 10.37421/2151-6219.2024.15.498
DOI: 10.37421/2151-6219.2024.15.499
DOI: 10.37421/2151-6219.2024.15.500
DOI: 10.37421/2151-6219.2024.15.495
This paper investigates the effects of minimum wage policies on employment rates in developing economies. Utilizing a panel data set from 20 developing countries over the period from 2000 to 2020, we employ a difference-in-differences approach to assess the impact of minimum wage increases on employment levels across various sectors. Our findings suggest that while minimum wage hikes can lead to short-term employment reductions in the formal sector, the long-term effects are mitigated by increased productivity and consumer demand.
Business and Economics Journal received 6451 citations as per Google Scholar report
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