• The Journal of Asian Finance, Economics and Business
• /
• v.9 no.1
• /
• pp.167-176
• /
• 2022

By analyzing the impact of oil prices on economic growth, this study has shown a new insight into the link between oil price inflation and economic growth. The primary goal of this study is to determine if oil prices are pro-growth or anti-growth. To provide empirical proof, the series data for both the core and control variables from 1972 to 2020 was used to justify the association on empirical grounds. To account for the presence of a unit root, the Augmented Dickey-Fuller Test was used, and after making the series compatible for co-integration, the Autoregressive distributed lag model was used to determine the empirical estimate. Additionally, the empirical models were used to diagnose heteroscedasticity and autocorrelation. The reference point model reveals that in developing nations like Pakistan, economic growth is anti-growth with an increase in prices, and it responds negatively to economic growth in the long and short run. As a result, oil price inflation in Pakistan fails to have a significant beneficial impact on economic growth in both the long and short run, but it does raise the general price level in the economy.

• Asian Journal of Business Environment
• /
• v.9 no.2
• /
• pp.27-34
• /
• 2019

Purpose - From the advanced path of development and current situation, the development of enterprises plays a tremendous role in promoting national economic growth and raising the overall national strength. Therefore, this paper aims at examining the mutual effect between small & medium enterprises and economic growth. Research design, data, and methodology - In order to address the operating mutual effect between the small & medium enterprises and economic growth more clearly, this paper sets Alibaba Group and Hangzhou as an example. Meanwhile, the annual data from 2000 to 2017 will be employed, and an empirical analysis will be performed under the vector error correction model. Results - The findings display that the total revenue of Alibaba Group has a positive effect on economic growth in city of Hangzhou. However, the Granger Causality test implies that there is only a unidirectional causality between total revenue of Alibaba Group and economic growth in Hangzhou. More specifically, 1% increase in total revenue of Alibaba Group can result in 0.272% in economic growth of Hangzhou in the long run. Conclusions - In summary, for the long run, the local governments should promulgate a series of policies to assist the small & medium enterprises like Alibaba Group to improve the local economic growth as seen in the city of Hangzhou.

• The Journal of Asian Finance, Economics and Business
• /
• v.7 no.11
• /
• pp.759-768
• /
• 2020

The purpose of this study is to assess the state of competition in Nepalese banking over the period from 2010 to 2019. This study employs panel data and a non-structural Panzar-Rosse model to measure the degree of competition in the Nepalese banking industry. The first reduced-form equation is applied to gauge competition, and the second model is used to test the long-run equilibrium in the banking market. The finding reveals that the Nepalese banking market is equilibrium in the long-run. It implies that the factor prices do not affect ROA in the long-run. The result of the H-statistic shows that the Nepalese banking system is operating under the state of perfect competition and is shifted from monopolistic competition to perfect competition. The reduced-form model reveals that the interest income is positive and significantly affected by factor prices. Similarly, the macroeconomic variable GDP growth is positively related to interest income. On the contrary, the bank's specific factors risk and the number of bank branches are inversely associated with the regressand. The outcomes of the study may be advantageous to the policymakers, especially to Nepal Rastra Bank to implement monetary policy and M&A policy for the stability and growth of the financial system of Nepal.

• The Journal of Asian Finance, Economics and Business
• /
• v.8 no.2
• /
• pp.783-790
• /
• 2021

The remittances play a major and a very critical role in promoting economic growth and development activities in the developing countries. In this study, the relationship between per capita gross domestic product (GDP) and remittances paid has been investigated based on the case studies in Malaysia from 1987 to 2018. Data was collected from various sources namely statistical yearbook by World Bank and Asian Development Bank. All variables are expressed in natural logarithm form. The technique utilized is the nonlinear autoregressive distributed lags (hereafter NARDL) approach which was introduced by Shin et al.(2014) to examine both short run and long run relationships, as well as the direction of causality, due to the asymmetric relationship between GDP and remittances. The bound test verifies asymmetric cointegration among the variables. The empirical results show that the remittances paid has a momentous short-run and long-run effect towards capital accumulation in Malaysia. Remittances also increase a positive relationship with capital accumulation for Malaysia. We found that remittances form a significant source of external capital and investment for developing countries especially Malaysia which helps in promoting economic development. Furthermore, as a developing country, foreign workers are a source of income to the receiving countries and an indicator to boost sender countries.

• The Journal of Asian Finance, Economics and Business
• /
• v.8 no.2
• /
• pp.111-122
• /
• 2021

The main purpose of the present research is to analyze the effects of trade, financial globalization, and technological progress on income inequality in the Indian economy over the period from 1982 to 2018. For this purpose, the study uses economic growth, financial globalization, trade openness, technological development, and economic inequality variables with appropriate proxies. The study employs the Auto Regressive Distributed Lag (ARDL) approach to co-integration and VECM based Granger causality approach to estimate both the short-run and long-run relationship and causality among variables. Using the ARDL bounds test, the study finds a long-run co-integrating relationship existing among the variables in the model. The study confirms the existence of a positive and significant impact of technological progress on income inequality. Further, globalization's limited impact reflects two offsetting tendencies; trade globalization is associated with a reduction in income inequality, while financial globalization is related to an increase in inequality. The results of VECM based Granger causality approach further confirm that technological progress, trade, and financial globalization causes income inequality both directly and indirectly through economic growth and inflation. In case of India, the results of this research can significantly facilitate stakeholders and policymakers in devising policies towards effective globalization and technological innovation for inclusive growth.

• Environmental Engineering Research
• /
• v.22 no.1
• /
• pp.116-124
• /
• 2017

The study makes an attempt to investigate the causal nexus between carbon dioxide emissions, GDP per capita, industrialization and population with an evidence from Rwanda by employing a time series data spanning from 1965 to 2011 using the autoregressive distributed lag model. Evidence from the study shows that carbon dioxide emissions, GDP per capita, industrialization and population are co-integrated and have a long-run equilibrium relationship. Evidence from the Granger-causality shows a unidirectional causality running from industrialization to GDP per capita, population to carbon dioxide emissions, population to GDP per capita and population to industrialization. Evidence from the long-run elasticities has policy implications for Rwanda; a 1% increase in GDP per capita will decrease carbon dioxide emissions by 1.45%, while a 1% increase in industrialization will increase carbon dioxide emissions by 1.64% in the long-run. Increasing economic growth in Rwanda will therefore reduce environmental pollution in the long-run which appears to support the validity of the environmental Kuznets curve hypothesis. However, industrialization leads to more emissions of carbon dioxide, which reduces environment, health and air quality. It is noteworthy that the Rwandan Government promotes sustainable industrialization, which improves the use of clean and environmentally sound raw materials, industrial process and technologies.

• The Journal of Asian Finance, Economics and Business
• /
• v.7 no.1
• /
• pp.101-110
• /
• 2020

Energy and energy consumption play an important role in strategies for socio-economic development of the country. In 1995, Vietnam officially entered the 500 kV North-South transmission power line exploits, with a full length of 1,487 km. The purpose of this study is to investigate the breakpoint and the transition effect of energy consumption to economic growth in Vietnam during the period of 1980-1994, and 1995-2016. The Autoregressive Distributed Lag (ARDL) approach and the Bounds test are used to test for the presence of cointegration, whereas the Toda and Yamamoto procedure Granger causality test is used for the direction of causality. The result of the Bounds test validates the existence of cointegration among the included variables. The empirical results provide evidence that energy consumption has a positive impact on the economic growth of Vietnam in the long run. The causality test shows that there is bi-directional causality between energy consumption and economic growth, supported feedback hypothesis. There is a breakpoint in 1995 and the contribution of energy consumption in economic growth in the period of 1995-2016 is lower than the stage 1980-1994. This study suggests Government authorities explore new sources of energy to achieve sustainable economic development in the long run.

• Journal of Energy Engineering
• /
• v.28 no.2
• /
• pp.1-17
• /
• 2019

This article analyzes causal relationships among gross domestic product(GDP), electricity consumption, carbon dioxide($CO_2$) emission and foreign direct investments(FDI) inflow of Korea over the period from 1976 to 2014, using unit root test, cointegration test, and vector error correction model(VECM). As the results, this article found (1) a long-run bi-directional causality between GDP and electricity consumption, which may imply a negative impact of electricity consumption-saving policy on economic growth, (2) uni-directional short- and long-run causalities running from $CO_2$ emission to GDP, and a uni-directional long-run causality running from $CO_2$ emission to electricity consumption, which can result in a negative impact of $CO_2$ emission reduction policy on economic growth and electricity consumption, (3) a uni-directional long-run causality running from FDI to GDP, and uni-directional short- and long-run causalities running from FDI to electricity consumption, which may result from relatively lower electricity prices than investing countries, (4) no causality between FDI and $CO_2$ emission, which is based on the characteristics of FDI composed of service industries. Considering the above causal relationships among the four variables, the policy implication needs to focus on the electricity demand management based on the relevant R&Ds, and on the gradual transition from fossil fuel- to renewable-energy. Adaptive policy to increase the FDI inflow is also needed.

• The Journal of Asian Finance, Economics and Business
• /
• v.7 no.4
• /
• pp.155-162
• /
• 2020

The paper aims to examine the association between information and communication technology (ICT), economic growth and population health based on health production model in Malaysia. This theoretical health production function is represented as follows: where the output is an individual health outcome, and the inputs are determinants of health, such as income, education, health care costs, medical facilities, the environment, and lifestyle. The development of information and communication technologies are represented as of mobile cellular subscriptions (per 100) and fixed telephone subscriptions (100) using time series data from 1993-2017 from the World Bank database. Using the bound testing technique of cointegration, this study finds that ICT affects population health significantly and positively in the long- and short-run. This is because ICT inclusion improves human health and longevity. Whereas, economic growth has no significant impact on the population's health both in the short- and long-run. The findings indicate that a weak global economy affects Malaysia's economic growth and reduces the health expenditure per capita. The results of this study suggest that policymakers must develop policies that improves public health by increasing health literacy, disseminating health information and facilitating medical facilities. This study also suggests that health care systems should to concentrate on digital inclusion.

• Asian Journal of Innovation and Policy
• /
• v.12 no.2
• /
• pp.246-260
• /
• 2023

With the advent of COVID-19, the world economy has undergone enormous losses and unprecedented crises. Moreover, this pandemic has put a significant effect on all business organizations, comprising the micro, small and medium enterprises (MSMEs) sector. MSMEs have been continuing to develop business strategies and are eager to compete in the market. The COVID-19 pandemic has shifted the full focus of MSMEs from 'business growth' to 'business survival' worldwide. E-commerce readiness plays a crucial role in a time of uncertainty and crisis during COVID-19 and affects the durability and sustainability of the business. This study attempts to study the readiness of online business and "E-commerce" adoption of MSMEs and its contribution to economic growth by utilizing both qualitative and quantitative techniques in the case of India. We use content analysis to determine the readiness of online business and Ecommerce in the post COVID-19 period. The result highlights the specific issues of this sector such as the shortage of resources and disruptions in the supply chain & logistical issues during the COVID-19 pandemic. Qualitative analysis discloses that almost half of the respondents adopt online platforms along with additional challenges to sustain their business during the pandemic. This study utilizes annual time series data for the period from 1973-74 to 2017-18 to understand the long-run relationship between India's GDP and MSMEs units. By utilizing the co-integration technique, this study reveals that there is a long-run relationship between MSME units and the economic growth of this country.