• The Journal of Asian Finance, Economics and Business
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• v.8 no.3
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• pp.165-170
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• 2021

This paper examines the long-run relationship between financial development and economic growth. The effective function of financial development is crucial to promote the economic development of the country. To achieve the objective, this study used Gross Domestic Product as a dependent variable and Credit to The Private Sector, Ratio of the Gross Fixed Capital Formation to GDP, Trade, Consumer Price Index and Labour Force as an independent variable. Augmented Dickey-Fuller test statistic (ADF) to check the stationary. Bounds test for cointegration and Auto-Regressive Distributed Lag Models (ARDL) are used to check cointegrating relationship amongst the variables and causality between financial development and economic growth. Moreover, the Model selection method is Akaike Info Criterion (AIC). This result demonstrates that the labor force and trade hold a significantly negative relationship with economic growth. Nevertheless, inflation, Credit to The Private Sector, and Ratio of the Gross Fixed Capital Formation to GDP show a significantly positive relationship with economic growth. Therefore, there is a statistically significant relationship between Financial Development and Economic growth in Sri Lanka and the Sri Lankan government should reform its trade policies.

• The Journal of Asian Finance, Economics and Business
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• v.8 no.4
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• pp.339-347
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• 2021

This study aims to forecast the exchange rate by a combination of different models as proposed by Poon and Granger (2003). For this purpose, we include three univariate time series models, i.e., ARIMA, Naïve, Exponential smoothing, and one multivariate model, i.e., NARDL. This is the first of its kind endeavor to combine univariate models along with NARDL to the best of our knowledge. Utilizing monthly data from January 2011 to December 2020, we predict the Pakistani Rupee against the US dollar by a combination of different forecasting techniques. The observations from M1 2020 to M12 2020 are held back for in-sample forecasting. The models are then assessed through equal weightage and var-cor methods. Our results suggest that NARDL outperforms all individual time series models in terms of forecasting the exchange rate. Similarly, the combination of NARDL and Naïve model again outperformed all of the individual as well as combined models with the lowest MAPE value of 0.612 suggesting that the Pakistani Rupee exchange rate against the US Dollar is dependent upon the macro-economic fundamentals and recent observations of the time series. Further evidence shows that the combination of models plays a vital role in forecasting, as stated by Poon and Granger (2003).

• The Journal of Asian Finance, Economics and Business
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• v.8 no.4
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• pp.113-124
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• 2021

The study investigates how financial markets respond to a shock to tone and semantic similarity of the Bank of Thailand press releases. The techniques in natural language processing are employed to quantify the tone and the semantic similarity of 69 press releases from 2010 to 2018. The corpus of the press releases is accessible to the general public. Stock market returns and bond yields are measured by logged return on SET50 and short-term and long-term government bonds, respectively. Data are daily from January 4, 2010, to August 8, 2019. The study uses the Structural Vector Auto Regressive model (SVAR) to analyze the effects of unanticipated and temporary shocks to the tone and the semantic similarity on bond yields and stock market returns. Impulse response functions are also constructed for the analysis. The results show that 1-month, 3-month, 6-month and 1-year bond yields significantly increase in response to a positive shock to the tone of press releases and 1-month, 3-month, 6-month, 1-year and 25-year bond yields significantly increase in response to a positive shock to the semantic similarity. Interestingly, stock market returns obtained from the SET50 index insignificantly respond to the shocks from the tone and the semantic similarity of the press releases.

• The Journal of Asian Finance, Economics and Business
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• v.9 no.1
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• pp.177-187
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• 2022

Theoretical literature agrees on the interaction between financial instability and economic activity but explains it's dynamic in two points of view: one is that the transmission mechanism occurs in one unique regime and the other reckons a shift of regime leads to the alteration of the transmission mechanism. This study aims to find evidence of the multi-regime transmission for ASEAN developing countries. The author employs the technique of Threshold vector auto regression using the financial stress index standing for financial instability. Monthly data is collected, covering a period long enough with many episodes of high stress in recent decades. There are two conclusions: (1) A financial shock has a negative and stronger impact on economic activity during a high-stress period than it does during a low-stress period; (2) the response of economic activity to a negative financial shock during high-stress periods is stronger than it is during normal times. The findings point to the importance of the financial stress index as an additional early warning indicator for the real economy sector, as well as the positive effect that a reduction in financial stress may have on economic activity, implying the importance of "unconventional" monetary policy in times of high financial stress.

• International Commerce and Information Review
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• v.17 no.1
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• pp.309-337
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• 2015

Recently, Korea had virtually reached an FTA deal with China on November 10, 2014 after the 14 rounds of negotiation during past two and half years. The two countries agreed to the FTA's 22 chapters, including products, services, investment, e-commerce, finance, communication, and other trade issues, but rice and several sensitive agricultural and fisheries products were excluded from the deal. Korea and China will remove their import tariffs on more than 90 percent of all products and more than 85 percent of imports by value within 20 years once the FTA is implemented. This paper intends to analyze the impacts of Korea-China FTA on the major industries in Daegu-Gyeongbuk region. Considering the statistics on the bilateral trade between China and Daegu-Gyeongbuk region, import tariff rates of the two countries, trade specialization indices of the major industries, and the package of Korea-China FTA deal, this study investigated the sectoral effects of Korea-China FTA on the four main industries, textiles, electrical-electronics, machinery and auto parts, and steel and iron industries in that region.

• Smart Media Journal
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• v.5 no.3
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• pp.42-48
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• 2016

Recently, most of the modern people used a second mobile device(two degree mobile device). Mobile devices are affecting all areas of human life, consumer electronics, transportation, manufacturing, and finance. On this paper, we propose a model-driven development based interaction model that can be used in the development of mobile payment system, which is the latest buzzword pins of the various application fields of mobile devices Tech (Fin-Tech) sector. Using a model-driven development based models do not depend on the Platforms (PIM), we propose a model for interaction between devices which can be reused when developing mobile billing app. A model-driven development based mobile applications use the reusable of interaction models development program analyzed the bus fees automatic payment application by a beacon.

• The Journal of Asian Finance, Economics and Business
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• v.8 no.4
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• pp.83-91
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• 2021

Health is an outset of psychological, social, financial, and physical state. Several macroeconomic factors are entangled with health and mortality. Infant mortality and life expectancy are two keyguard on demographic research context on last few decades. On the other hand, foreign inflows play an unprecedent role for raising economic circulation and providing more opportunities to build a better society. The study aims to investigate the relationship between foreign direct investment (FDI), economic growth, and Bangladesh's health. This study employs time-series data from 1980 to 2018. Results show, with Auto-regressive Distribute Lag (ARDL) model, that there is significant cointegration among variables. Foreign investment and economic output relate significantly and positively to health. On the contrary, education is quasi-linked with a different sign-on different model. For model validation, pitfalls of time-series multicollinearity, heteroscedasiticy, and autocorrelation are not present. Also, CUSUM and CUSUMSQ tests are validating the model as stable and fit for future prediction. Medical assessment and education need more attention from the government as well as the private sector. FDI can play a catalyst role for improving the health sector, raising opportunity in educating and creating a better lifestyle. In order to optimize foreign investment, the government should implement necessary reforms and policies.

• Asia-Pacific Journal of Business
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• v.13 no.3
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• pp.183-208
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• 2022

Purpose - The main purpose of this study is to widely investigate the impact of recent pandemic crises on the synchronization of the world capital markets through 25 stock indices from major developed countries. Design/methodology/approach - This study collects 25 stock indices from major developed countries and the time period is between January 5, 2001 and February 24, 2022. The data sets used in the study include finance.yahoo.com and Investing.com.. The Granger causality analysis, unit-root test, VAR analysis, and forecasting error variance decomposition were hired in order to analyze the data. Findings - First, there are significant inter-relations among 25 countries around recent major pandemic crises(such as SARS, A(H1N1), MERS, and COVID19), which is consistent result with previous literature. Second, COVID19 shows much stronger impact on the world-wide synchronization than other pandemics. Third, the return volatility of each stock market varies, unit root tests show that daily stock index data are unstable while daily stock index returns are stable, and VAR(Vector Auto Regression) analyses presents significant inter-relations among 25 capital markets. Fourth, from the impulse response function analyses, we find that each market affects the other markets for short term periods, about 2~4 days, and no long term effect was not found. Fifth, Granger causality tests show one-side or two-sides synchronization between capital markets and we estimate, through forecasting error variance decomposition method, that the explanatory portions of each capital market on other markets vary from 10 to 80%. Research implications or Originality - The above results all together show that pandemic crises have strong effects on the synchronization of world capital markets and imply that these synchronizations should be carefully considered both in the investment decisions by individual investors and in the financial and economic policies by governments.