• The Journal of Asian Finance, Economics and Business
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• v.8 no.4
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• pp.709-716
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• 2021

The main objective of this research is to find out the effect of Non-Performing Loan (NPL) of Nepalese conventional banks. The population of this study is major commercial banks in Nepal and the data obtained for this study was from the period 2015-2019. This research used secondary data and it is collected from each bank's annual report and GDP and Inflation taken from the World Bank database. The method used for data analysis in this study is multiple regression analysis. The study used NPL as a dependent variable and Return on Asset (ROA), Capital Adequacy Ratio (CAR), Bank Size, GDP growth, and Inflation as independent/explanatory variables. The result of this research shows that ROA, Bank Size, GDP, and Inflation have a significant effect on NPL but CAR does not have a significant effect on the NPL of banks. In other words, the GDP effect on NPL in this study shows a positive and significant effect while most studies show a negative effect. It demonstrates that when GDP growth increases, there is a significant increase in the growth of Nepalese banks even though there were no significant changes in income growth. Therefore, GDP growth has a positive and significant effect on the NPL of commercial banks. Thus, the bankers and policymakers need to consider GDP growth carefully while taking NPL-related decisions.

• The Journal of Asian Finance, Economics and Business
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• v.9 no.9
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• pp.263-269
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• 2022

The global financial crisis of 2008-2009 and the COVID-19 pandemic that started in 2019 along with the slow and unstable recovery of the global economy have raised concerns about the impact of global uncertainty on the macroeconomics of the countries. The paper used the Structural Vector Autoregression (SVAR) model to examine the impact of global uncertainty shocks on Vietnam's economy from the period 2008-2022. We found that Vietnam's output dropped following the shock of global uncertainty, the peak was in the third month, and lasted for one year. Inflation in Vietnam had a rapid downturn in the first month, peaked in the seventh month, and took a long time to cease. When the economy experienced the shock of increased global uncertainty, Vietnam's policy interest rate was adjusted downward. Additionally, we included a long-term interest rate to consider the overall impact of monetary policy into account. A decreasing trend was also found with this rate. The global uncertainty shock effects acted as the aggregate demand shocks, reducing output and inflation as the uncertainty increases and vice versa, thus monetary policy can be used to regulate Vietnam's economy to deal with negative shocks without the trade-offs between output and inflation as aggregate supply shocks.

• Asian Journal of Business Environment
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• v.13 no.2
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• pp.21-28
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• 2023

Purpose: This study aims to analyze the determinants of Green Total Factor Productivity (Green TFP) growth in the agricultural sector in Indonesia from 1980-2018. Research design, data, and methodology: The growth of Green TFP in the agricultural sector is calculated using the Growth Accounting Method. Moreover, this study uses multiple linear regression to analyze the determinants of the growth of Green TFP in the agricultural sector in Indonesia. Results: The survey results show that the average growth of Green TFP in the agricultural sector in Indonesia is still negative, which indicates that the efficiency of production factor or mastery of technology is still low. Inflation and patent applications are variables that significantly affect the growth of Green TFP in the agricultural sector, where the inflation variable has a negative effect. In contrast, the variable growth of patent applications has a positive impact. Conclusions: The government needs to continue to improve efficiency by organizing various programs related to increasing mastery of technology in the agricultural sector. The government also needs to advance research and development by promoting patents to become research incentives and impact the improvement of new technologies, especially those related to the environment. Moreover, economic stability needs to be maintained through inflation control.

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

• Journal of Distribution Science
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• v.22 no.8
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• pp.17-27
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• 2024

Economic growth is influenced by various factors, including support from the banking world in channeling funds ownedthrough bank credit which will be a stimulus from economic activities as a source of economic growth. Purpose: Thisstudy aims to analyze the determinants of bank lending in supporting regional economic growth in South Sulawesi Province. Research Design, Data, and Methodology: This study uses secondary data taken from banking data and analyzed using path analysis Data analysis is carried out using the help of SPSS statistical analysis tools. Results: Non-Performance Loan, Three Partied Fund, Inflation, Exchange Rate directly affect economic growth. For the analysis of the indirect effect of Non-performance loans and Three Partied Funds have an indirect effect on economic growth through lending while the Loan to deposit Ratio, Inflation and exchange rate do not indirectly affect economic growththrough lending. Credit disbursement has a positive and significant effect on economic growth Conclusion: Economicgrowth of a region is influenced by many factors and these factors are influences from the banking world, the results ofthis study show that economic growth is strongly influenced by bank support through lending to support the economy by considering other factors such as interest rates and currency exchange rates

• Environmental and Resource Economics Review
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• v.26 no.2
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• pp.257-286
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• 2017

This paper estimates the effects of imaginary repeated increases in excise duties on fuel oil consumption and on their income redistribution according to changes in consumer price index, if the inflation indexation system was introduced right after the second Energy Tax Reform ended in July, 2007 in Korea. In fact, nominal excise rates have not been adjusted since 2007. As a result, the real excise rates on fuel oils have been diminished inversely proportional to the consumer price index. Own- and cross-price elasticities of fuel oils such as gasoline and diesel oil are estimated under the general equilibrium framework based on the linear expenditure system. Counterfactual analyses through microsimulation in a static model are adopted to estimate the effects of introducing inflation indexation into the fuel tax in 2007 when the second Energy Tax reform ended on the fuel consumption and income redistribution in 2014. Microsimulations suggest that its introduction could have reduced the consumption of gasoline and diesel oil by 8.8% and 5.4%, respectively, ending up with increased excise revenue by 11.9%. The revenue increase in spite of decreased consumption is mainly because their demands are price inelastic. It could also have increased positive income redistributive effect by 0.01%p (from 0.12% to 0.13%), which is measured in terms of percentage decrease in Gini coefficient. In other words, the fuel excise on the two fuel oils decreased by 0.13% the Gini coefficient of before and after fuel tax income in 2014. This implies that the inflation indexation could have enlarged the income redistributive effect up to 0.13% in 2014, if it is introduced in 2007.

• Economic Analysis
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• v.25 no.2
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• pp.1-53
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• 2019

This paper examines monetary policy quantitatively in a two-agent and small-scale New-Keynesian economy with debt-constrained households that cannot smooth their consumption intertemporally and frictionlessly since highly indebted households are not allowed to borrow above a certain debt ceiling in incomplete financial markets without additional risk premiums due to information asymmetry between savers and borrowers. We find that, in the event of cost shocks, the asymmetric responses of borrowing households without, and saving households with, dividend incomes lead to different labor supplies and consumptions over heterogeneous households, and eventually to an extension of the monetary policy transmission channels. The income effect and low elasticity of the labor supply play key roles in such asymmetric responses over heterogeneous households. We also find that the social welfare in a flexible inflation targeting (FIT) monetary policy, in which both the inflation gap and the output gap are considered in an integrated manner when policy-making, is similar to that of the Ramsey optimal monetary policy (ROP), in which the shares of debt-constrained households, as well as all economic states, including both the inflation gap and output gap, are considered comprehensively for policy-making, and that it is greater than that of simple inflation targeting (SIT) monetary policy, in which only the inflation gap is considered mechanically for policy-making. Such social welfare implies that a FIT policy may still work even in an economy with a sizable number of debt-constrained households. Further, the responses of cost shocks to consumption and labor supply are dying out more slowly under FIT and ROP policies than under an SIT policy.

• KDI Journal of Economic Policy
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• v.13 no.2
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• pp.3-19
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• 1991

This paper attempts to identify key determinants of long run movements of real M2 by using the Johansen procedure for estimating and testing cointegration relations. It turns out that the real M2 equation has been stable over the long run despite rapid changes in financial structure since 1975. Moreover, the real M2 equation can be reduced to a velocity equation with the opportunity cost variable, expected inflation less the weighted average rate paid on M2 deposits, being the key determinant. However, it does not work to use a market interest rate such as the yield on corporate bonds in place of expected inflation for calculation of the opportunity cost. In the U.S., a market interest rate can be used, but not in Korea. Presumably, two somewhat different reasonings can be used to explain this result. One is that the yield on corporate bonds may not adequately reflect the inflationary expectations due to regulations on movements in interest rates. The other is that M2 deposits are not readily substitutable with such assets as corporate bonds because of market segmentations, regulations, and so on. From the policymaker's point of view, this implies that the inflation rate is an important indicator of a policy response. On the other hand, policymakers do not regard movements of the yield on corporate bonds as an important policy indicator. Altogether, the role of interest rates has been quite limited in Korea because of incomplete interest rate liberalization, an underdeveloped financial system, implementation procedures of policy measures, and so on. The result that M2 velocity has a positive cointegration relation with expected inflation minus the average rate on M2 implies that frequent adjustments of the regulated rates on M2 will be necessary as market conditions change. As the expected inflation gets higher, M2 velocity will eventually increase, given that the rates on M2 do not change. This will cause higher inflation. If interest rates are liberalized, then increases in market interest rates will result in lagged increases in deposits rates on M2. However, in Korea a substantial portion of deposit rates are regulated and will not change without the authority's initiatives. A tight monetary policy will cause increases in a few market interest rates. But the market mechanism, upward pressure for interest rate adjustments, never reaches regulated deposit rates. Hence the overall effects of tight monetary policy diminish considerably, only causing distortions in the flow of funds. Therefore, frequent adjustments of deposit rates are necessary as market conditions such as inflationary expectations change. Then it becomes important for the policymaker to actively engage in adjusting regulated deposit rates, because the financial sector in Korea is not fully developed.

• The Korean Journal of Financial Management
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• v.3 no.1
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• pp.67-97
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• 1987

• Proceedings of the Korean Society for Agricultural Machinery Conference
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• 1997.06c
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• pp.49-54
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• 1997