• 농업과학연구
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• 제38권2호
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• pp.393-404
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• 2011

The international grain price shows dramatic change, which results in the price change of Korean processed food. Recently, Korean government and consumers started discussing about the effects of change of international grain price on the processed food. However, few studies have analyzed this effects. The goal of this paper is to analyze the effects of price change of international grain, especially wheat, soybean, and sugarcane, on the processed food price in Korea. As the results of analysis, three findings are presented: First, the size and timelag of the effects of change of international grain price on the processed food price is different due to products, Second, there is the possibility that processed food price in Korea will increase, Third, Korean government has some methods to manage the price change of processed food, even though government cannot totally control the price.

• The Journal of Asian Finance, Economics and Business
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• 제6권3호
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• pp.123-130
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• 2019

The paper aims to investigate whether foreign direct investment (FDI) has positive effect on the labour productivity in Vietnam. Labour productivity is the elemental determinant of a country's development level in long-term. In recent years, although increasing consistently, labour productivity of Vietnam remains low in comparison to other South East Asian countries. To identify the direction of effect and the level of effect of FDI and human capital on the labour productivity of Vietnam, Autoregressive Distributed Lag (ARDL) model was used to examine the effect of FDI and human capital on labour productivity in Vietnam from 1986 to 2014. The results of bounds test confirm the existence of cointegration among the variables. Further, the Toda and Yamamoto Granger causality test affirms that there is unidirectional causality running from foreign direct investment and human capital index to labour productivity. The empirical results provide strong statistical evidence that foreign direct investment and human capital has a positive impact on labour productivity in Vietnam in long-term. These findings imply that workers are expected to further improve their knowledge, skills and that policy-maker should establish concrete plans to increase human capital. Results from this study provide suggestion necessary for Vietnam to achieve sustainable development.

• Environmental Engineering Research
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• 제22권1호
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• pp.116-124
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• 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
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• 제4권2호
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• pp.5-17
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• 2017

The main objective of the study is to measure the vulnerability of Indonesia's financial system stability in response to external shocks, including from regional economies namely three biggest Indonesia major trading partners (China, the U.S and Japan) and other external factors (oil price and the federal funds rate). Using Autoregressive Distributed Lag (ARDL) model and Orthogonalized Impulse Response Function (OIRF) with quarterly data over the period Q4 2002 - Q1 2016, results confirm that, 1) oil price response has the largest effect to Indonesia financial stability system and the effect period is the longest compared to others, represented by NPL and IHSG; 2) among those three economies, only China's economic growth has significantly positive effect to Indonesia financial stability system. Based on the findings it is better for the authorities to: 1) Diversify international trade commodities by decreasing share of oil, gas, and mining export and boosting other potential sectors such as manufacture, and fisheries; 2) Ensure the survival of Indonesia large coal exporter companies without neglecting burden of national budget; and 3) Create buffer for demand shock from specific countries by diversifying and increasing share of trading from other countries particularly from ASEAN member states.

• The Journal of Asian Finance, Economics and Business
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• 제7권9호
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• pp.201-208
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• 2020

Terms of trade is an important indicator of the welfare gains from international trade to the exporting country. Terms of trade of oil-exporting countries are hypothesized to depend primarily on oil prices. The study assesses the relation between oil prices and the terms of trade of Saudi Arabia. The study uses the Autoregressive Distributed Lag method to determine the cointegration between the country's terms of trade and oil prices for the period 2000-2018. The data for net barter terms of trade is taken from World Development Indicators and oil price is taken from Saudi Arabian Monetary Agency. The results show that oil prices and terms of trade are cointegrated and any disequilibrium between the two variables is corrected by 35% in a year. The study also reports a positive relationship between the two items, both in the short run and long run. Diagnostic tests indicate the model to be fit. The results suggest that, for a primarily oil-producing country like Saudi Arabia, the terms of trade depend on oil prices. The study fills the gap in the literature on the study of terms of trade for Saudi Arabia for the last few years, where there has been a high volatility in oil prices.

• The Journal of Asian Finance, Economics and Business
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• 제7권11호
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• pp.607-617
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• 2020

This study investigates the causal relationship between public and private external debt and economic growth in developing countries. Our model includes 18 selected Asian developing and transition economies from 1995 thru 2019. We employ the dynamic heterogeneous panel data methods, pooled mean group (PMG), robust cross-sectional augmented autoregressive distributed lag (CS-ARDL), and pairwise panel causality test. The results of PMG and CS-ARDL show the existence of causality between external debt and economic growth both in the short-run and long-run. The pairwise Granger causality test found the bidirectional causal relationship runs from total external debt, public external debt, and private external debt to economic growth and economic growth to external debt. The results showed first the existence of causality in the short-run and long-run between external debt and economic growth and the second, bi-directional causality that runs from external debt to economic growth and economic growth to external debt. Both the dynamic models and robust estimator found the same inferences about the impact of main variables on economic growth in Asian developing and transition economies. The findings of this study suggest to assure debt management, investment in productive sectors, increase domestic savings, decrease external dependency, and focus on international trade.

• The Journal of Asian Finance, Economics and Business
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• 제8권11호
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• pp.203-212
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• 2021

Theoretically, economic growth necessitates financial liberalization. Thus, the current research examines the effect of financial liberalization on economic growth in emerging nations, with a particular focus on Egypt and Saudi Arabia. To determine this effect, the study employs a model that uses Gross Domestic Product growth as the dependent variable and the following macroeconomic variables as financial liberalization indices: Broad money as a percentage of GDP, Domestic bank credit to the private sector as a percentage of GDP, Monetary sector credit to the private sector as a percentage of GDP, Net inflows of foreign direct investment as a percentage of GDP. All data is annual data of Egypt and the Kingdom of Saudi Arabia for the period 1970-2018 obtained from the World Bank open data website. The empirical investigation employs the Autoregressive Distributed Lag (ARDL) approach. The findings indicate that, after more than three decades of implementation, both countries' financial and external liberalization policies do not have a favorable effect on their economies' growth rates. Additionally, this study has led us to conclude that any financial liberalization policy in both countries must be preceded by the strengthening of these countries' financial development and institutional frameworks, as well as the achievement of macroeconomic stability.

• The Journal of Asian Finance, Economics and Business
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• 제8권5호
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• pp.543-549
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• 2021

The stock market plays a crucial role in the growth of industry and trade, which eventually affects the economy. This paper studies the determinants of stock market development in Jordan using yearly time-series data (1978-2019). The autoregressive distributed lag approach is applied to examine co-integration, while the vector error correction model is employed to estimate (long-run and short-run) causal relationships. The results show that macroeconomic determinants such as gross domestic product, gross domestic savings, investment rate, credit to the private sector, broadest money supply, stock market liquidity, and inflation rate are important determinants of stock market development. These findings provide vital implications for policymakers in developed and emerging stock markets. First, economic development plays an imperative role in stock market development. Second, developing the banking sector is mandatory because it can significantly promote stock market development. Third, domestic investment is a significant determinant of stock market development, especially in emerging countries. However, it is vital to launch policies that lead to encourage investment and promote stock market development, and this could be done through (1) encouraging competition, (2) improving the institutional framework, and (3) removing trade blocks by establishing a mutual connection between foreign private investment entities and government authorities.

• The Journal of Asian Finance, Economics and Business
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• 제8권5호
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• pp.43-52
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• 2021

This study is the first to scrutinize how real effective exchange rate, together with the vehicle currency exchange rate, asymmetrically influences the total trade balance between ASEAN (Association of Southeast Asian Nations) and the EU (European Union). This research employs quarterly data between 2000Q1 and 2018Q1, which is derived from several sources. We introduce a method for constructing the double-aggregated real effective exchange rate between ASEAN and the EU that captures the roles of all their currencies. Moreover, we propose the formula to compute vehicle currency exchange rate to assess the importance of vehicle currency in ASEAN-EU trade. Additionally, as asymmetrical impacts of exchange rate on trade balance are well documented by current studies, we employ Nonlinear Autoregressive Distributed Lag (NARDL) model of Shin et al. (2014) to analyze the impacts of currency depreciation as well as appreciation in detail. The findings confirm the prominence of USD as vehicle currency in ASEAN-EU trade. Both depreciation and appreciation of ASEAN's currencies against USD can foster ASEAN's trade balance in the long run. Short-run asymmetrical impacts as well as J-curve effect are found in the vehicle currency models only. The results are robust for the cases of EU-28 and EU-27.

• The Journal of Asian Finance, Economics and Business
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• 제8권3호
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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.