Journal of Quantitative Methods

The 2008 Crisis: An International Finance (Over)view

2019-09-12T07:24:56+02:00

The aim of this paper is to present an international finance view of the 2008 crisis. By relying on four traditional international finance classes of models (the intertemporal current account approach, two exchange rate risk premium models and open-economy economic policy models), we addresed, theoretically, the importance of macro-finance aspects of the episode such as portfolio reallocation and its aggregate effects, using data for supporting the claims. Moreover, by telling the story of the crisis, divided in three periods (Great Moderation, Great Recession and Euro Crisis) we provided an overview of the deployments as well as an understanding of the development from a slightly point of view.

Statistical Analysis of Location Parameter of Inverse Gaussian Distribution Under Noninformative Priors

2019-09-12T07:20:37+02:00

Bayesian estimation for location parameter of the inverse Gaussian distribution is presented in this paper. Noninformative priors (Uniform and Jeffreys) are assumed to be the prior distributions for the location parameter as the shape parameter of the distribution is considered to be known. Four loss functions: Squared error, Trigonometric, Squared logarithmic and Linex are used for estimation. Bayes risks are obtained to find the best Bayes estimator through simulation study and real life data

Threshold Effects of Institutional Quality in the Infrastructure-Growth Nexux

2019-09-12T07:22:26+02:00

This study estimates the threshold level of institutional quality that will ensure the efficient use of infrastructure in stimulating growth in Sub-Saharan Africa based on panel data from 41 countries in the region between 1996 and 2015. It employs a dynamic panel threshold regression model which is derived from the New Institutional Economics theory and this is estimated using the first-differenced Generalized Method of Moments estimator. Results reveal that the relationship between infrastructure and growth is non-linear which provides support for the use of a threshold regression model, with institutional quality serving as the threshold variable. In terms of the threshold level, the findings show that the index of institutional quality that will ensure the efficient use of infrastructure in stimulating growth is 0.410. The study also finds that, on average, countries in the region operate below this threshold level, hence their poor growth. The conclusion that is drawn from the analysis is that poor or low institutional quality is one of the factors hampering the growth of countries in the SSA region. A major limitation of the study is that the estimator employed for the threshold analysis is developed for models with single threshold value only and so does not allow for multiple threshold values. Thus, it is recommended that governments in the region need to formulate and implement policies targeted at improving the level of institutional quality in their countries.

The Past, Present, and Future of FDI: Towards a better Global Economics

2019-09-12T07:23:20+02:00

We document past, present, and future of FDI trend in recent decades that goes substantially beyond the advanced economies. This rigorous study also examines the influence of FDI on economic growth using macro variables for a global perspective. Six macro variables namely, FDI, physical capital, trade, human capital, labor force, and infrastructure were used in this study. We did a panel analysis on data from 2002 to 2017 and used rigorous two-way fixed effect model. This study finds that both FDI and trade openness enhance economic growth. Open door policies are more beneficial for the entire world; capital also plays a significant role in this process. Further, FDI plays a role with human capital but vocational training, skilled labor force and education are the most important factors to attract FDI. In the last decade, overall sub-Saharan African, EU and Central Asia, Latin America and Caribbean regions have observed a significant economic growth through FDI. The future of FDI in a high populated area is very gleaming. The overall result indicates that FDI accelerates economic growth in the globe.

Determinants of Dropout and Child School Enrollment: A Case Study from Rural Islamabad

2019-09-12T07:19:33+02:00

Education is an important pillar for the development of any society. Generally, school enrollment in developing countries is observed very low compared to the developed countries and the situation is further worsened by the high dropout rate. The current study investigates the major factors responsible for high dropouts in Islamabad, Pakistan, particularly in rural areas. For this purpose, the primary data have been obtained through a detailed questionnaire collecting information on child socioeconomic, household, cultural, and other characteristics. For modeling purposes, Probit model is used to investigate the effects of various factors on high child dropout rate. The results revealed that besides the distance from school to home, financial constraints are the most important reason for dropping out. Moreover, the education of father, age of the child and the gender of the child are also highly significant variables that determine the probability of a child dropout.

Exchange Rate Uncertainty and Workers’ Remittances: Empirical Bayesian Approach

2019-09-12T07:25:25+02:00

Exchange rate is one of the important determinates of worker’s remittances to a country. Level of exchange rate as well as any fluctuation in it influences the volume of workers’ remittances. The present study uses data of workers’ remittances from ten major countries to Pakistan for the period 1973 to 2012. Uncertainty of exchange rate is estimated through GARCH model. We use Empirical Bayesian approach to compute posterior information (estimates, for which, the GMM estimates are used as prior in order to avoid biasness and inconsistency due to the presence of endogeniety in our model. The Empirical Bayesian estimates are found to be more efficient in terms of significance and correct signs of modeled variables. The findings suggest a significant role of home and host country characteristics in most of the cases. The findings also reveal a negative impact of exchange rate uncertainty on the inflow of remittances. The political instability reveals an insignificant impact on remittances. The study recommends different policy options for different host countries. Apart from the Middle East, the policy for other regions (like USA, Canada, and Germany etc.) must be considered separately to encourage inflow of remittances. Appropriate stabilization measures have to be taken on priority basis to curtail volatility of exchange rates and to ascertain regular inflow of remittances.

Drivers of Green Supply Chain Management Practices and their Impact on Firm Performance: A Developing Country Perspective

2019-04-24T14:36:56+02:00

The purpose of this paper is to identify the drivers of Green Supply Chain Management (GSCM) practices among the manufacturing firms of a developing country, and to examine the impact of GSCM practices on firms’ economic and environmental performance. A structural equation model is developed to study the hypothesized relationships between three drivers and GSCM practices. Furthermore, the relationship between GSCM practices and firm’s economic and environmental performance is also investigated. A sample of manufacturing firms is taken from the companies listed in the local stock exchange. Cross-sectional data of 80 responses from these manufacturing firms is collected. The developed model is tested through Partial Least Square Structural Equation Modeling (PLS-SEM) technique. Results show that customer’s pressure and firm’s internal drive (enviropreneurship) positively impacts the adoption of GSCM practices whereas the relationship between governmental legislation GSCM practices adoption is not significant. GSCM practices positively impact the supply chain buying firm’s economic and environmental performance.

An Empirical Investigation on the Relationship between Onshore and Offshore Indian Rupee Market

2019-03-13T11:06:21+01:00

Exchange rate movements have important ramifications for the economy’s business cycle, trade and capital flows. For India, the exchange rates fluctuations have consequences for being competitive in terms of international trade and capital flows, tourist destination and for maintaining a healthy international reserve. This paper attempts to explore the relationship between rupee-dollar exchange rate in spot market, domestic forward market and off-shore forward i.e. non-delivery forward market (Singapore) to understand the information flow in between these markets. Suitable econometric techniques including causality analysis was used for the study for the period 2002 to 2014 after considering structural breaks and sub period analysis was also done. It was found that the relationship between all three markets is quite dynamic with evidences of causality in one sub period and reverse direction or no causality in other sub periods, conditional upon intervention done by RBI to curb the volatility and on various macroeconomic shocks such global financial crisis.

Structural Equation Modelling of Relationship between Teachers’ Capacity Building and Students’ Academic Performance in Secondary Schools in Kwara State, Nigeria

2019-03-13T10:28:31+01:00

Unarguably, students’ academic success rests on the learning experiences derived from their teachers via teaching and learning processes in the classroom. Teachers are an important tool for implementing the school programs to achieve school success. The human capital development is regarded as a way of building the capacity of teachers in the school system, thereby strengthening their knowledge and skills. In the light of this, this study examined the impact of teachers’ capacity building on academic performance. Methodologically, this study adopts a correlation survey method to establish the links between constructs of the study. Stratified and quota sampling techniques were used to select 183 respondents for the study. Questionnaire method is used for the study. Students’ results in five subjects (Mathematics, English, Biology, and Economics) were collected to measure students’ academic performance. The data collected were analyzed using Smart PLS software to model the nexus among the constructs. Findings revealed that capacity building are provided moderately as perceived by the teachers. Also, results established that teachers who went through capacity building programs are equipped with modern techniques of teaching, thereby positively influence students’ academic achievement. In conclusion, this study concluded that training and re-training of teachers is an essential factor for determining students’ success. It was recommended that capacity building should be constantly provided for teachers with a view to boost their morale and makes them efficient and effective. Improved budgetary allocations should be made by government for teachers to attend various capacity building programs. Private and individuals should be involved in providing capacity building for teachers. Lastly, no teacher should be left out in capacity building programs as teachers remain the bedrock to students’ success.

Energy Consumption and Economic Growth: Evidence from Developed and Emerging Markets

2019-04-24T14:38:53+02:00

This research analyzed the effect of energy consumption on economic growth using neo-classical one-sector aggregate production function with panel data from Emerging Markets and Developed countries over the period 2000–2013. This study has applied dynamic panel method in the form of two-step panel Generalized Method of Moments (both difference and system) GMM. The findings of this research exposed that both gross fixed capital formation and energy consumption have significant and positive effect on economic growth in both Developed and Emerging Market countries. In addition, labour force has been found to influence positively on economic growth in the group of Developed Market countries. However, labour force established the significant as well as negative effect on economic growth in the Frontier Market countries. Since the findings revealed that all the sampled countries are energy dependent, therefore, their policy makers should continue to promote the development of energy infrastructure with the aim to gain higher economic growth by making effective energy policies. This can be achieved through the allocation of more resources to the development of new sources of energy and ensure sustainability of energy use.