International Journal of Economic Policy in Emerging Economies (38 papers in press)

Regular Issues

• Open Access

  University to MSME Knowledge Transfer in Indonesia ( Free Full-text Access )

  by Lina Anatan 
  Abstract: This study involved 201 MSMEs collected through online survey. By using descriptive statistic, this study found that the main interest of MSMEs to engage with universities is to digitise. The most type of collaboration needed is market study, while the main objective of MSMEs to collaborate is to increase market share. Increasing profits through productivity become the main motivation of MSMEs to collaborate, business development is the outcome that MSMEs are willing to achieve the most from the partnership, while funding problem is the biggest barrier to realising university and MSMEs partnership. SmartPLS used to test the hypotheses, the study found that university to MSMEs knowledge transfer significantly affect competitive advantage and MSMEs performance, and the competitive advantage was significantly affected MSMEs performance. The study also found that the hypothesis testing the influence of university to MSMEs knowledge transfer mediated by competitive advantage was also supported.
  Keywords: knowledge transfer; partnership; university; MSMEs; Indonesia.
  DOI: 10.1504/IJEPEE.2024.10067105
   
  

• Open Access

  THE IMPACT OF CORPORATE GOVERNANCE ON THE WORKING CAPITAL MANAGEMENT OF VIETNAMESE-LISTED FIRMS DURING THE COVID-19 PANDEMIC PERIOD ( Free Full-text Access )

  by Bui Anh Thanh, Nguyen Vinh Khuong 
  Abstract: This study evaluates the impact of corporate governance (CG) on the working capital management (WCM) of non-financial companies listed on the Vietnam stock market. In this study, we use the system generalised method of moments (SysGMM) regression method with panel data of 552 companies in 2015
  Keywords: working capital management; WCM; corporate governance; CG; COVID-19; Vietnam.
  DOI: 10.1504/IJEPEE.2024.10067106
   
  
• BRICS countries as new growth poles of the global digital economy  
  by Evgeniya K. Karpunina, Raisa L. Agabekyan, Igor V. Petrov, Elena A. Gorlova, Tatyana G. Sobolevskaya 
  Abstract: The purpose of the study is to identify the digital economy self-development potential of the BRICS countries, which is necessary for them to become the growth poles of the global economic system. The authors have adapted the concept of self-development potential to the research of the digital economy. The article offers the authors methodology for assessing the digital economy self-development potential based on the use of the method of integral estimates. The calculation of complex integral indicator of the digital economy self-development potential in each of the BRICS countries has allowed the authors to identify countries that have an opportunity to become growth poles in the global economy (China and Russia), as well as to determine the outsider countries (Brazil, India and South Africa). The authors justified the need to differentiate the state policy in relation to the growth poles and outsider countries.
  Keywords: digital economy; BRICS countries; emerging economies; digital economy self-development potential; developed countries; growth poles; advanced development; state policy; productivity; differentiated policy.
  DOI: 10.1504/IJEPEE.2021.10036746
   
  
• The kaizen philosophy, a management approach for continuous improvement in times of COVID-19. A case study  
  by Manuel F. Suárez-Barraza*, Manuel Francisco Morales-Contreras 
  Abstract: Studying the application of the kaizen philosophy in the midst of the global COVID-19 pandemic represents a great opportunity to observe the changes that are happening in people s daily work. In particular, in the health sector it has represented a challenge of extraordinary dimensions. Certain public hospitals in Mexico have taken into consideration this Japanese philosophy as a way of dealing with the new way of working to organise and improve it. An exploratory case study was conducted. The processes of healthcare for suspected and contaminated COVID-19 patients improved in terms of employee safety, elimination of MUDA and quality of service. Four kaizen techniques were applied before and after COVID-19 in the public hospital such as: kaizen teams, standardisation, genba walk management and senpai-kohai relationship. As a result of this research some drivers emerge during the case study analysis. Participative leadership from middle management, management by walking around, learning by doing among other drivers, they have helped the public hospital to solve its daily problems in addition to coping with the COVID-19 pandemic in terms of operational efficiency and safety of health employees.
  Keywords: kaizen philosophy; healthcare; kaizen teams; standardisation; problem solving; Mexico; senpai-kohai relationship; case study; kaizen applied during COVID-19.
  DOI: 10.1504/IJEPEE.2021.10037675
   
  
• The impact of COVID-19 crisis on return and volatility spillovers between the Vietnam stock market and world gold price  
  by Le Van, Nguyen Khac Quoc Bao 
  Abstract: In this paper, we examine the relations between Vietnam stock and world gold spot price in terms of return and volatility spillovers using the bivariate BEKK-GARCH framework models with Students t-distributed errors for daily return series from 1 January 2010 to 15 May 2020. We find that the world gold price positively affects the VN index return from 2010 to 2019 while affects negatively during the period of novel corona virus disease (COVID-19) pandemic from 1 January 2020 to 15 May 2020.The COVID-19 impact assessment on the VN index-world gold portfolio reveals that the gold weight gradually increases, and the optimal hedge ratio dramatically decreases to a negative value under implications of the pandemic
  Keywords: stock return; world gold price; COVID-19; Vietnam.
  DOI: 10.1504/IJEPEE.2021.10037684
   
  
• Macro-economic determinants of the relationship between exchange rate and stock returns: a two-stage approach  
  by K.V. Bhanu Murthy, Amit Kumar Singh, Annu Aggarwal 
  Abstract: This paper has developed and implemented a two-stage least square (2SLS) simultaneous equation model based on Hayashi and Sims (1983). First, we have applied autoregressive distribution lag (ARDL) bounds testing approach for estimating the macro-economic determinants of foreign exchange rate (FER). The presence of long-run stable co-integrating relationship between FER and indirect macro-economic variables is established. The second stage examines the impact of pre-determined exchange rate and other (direct) macrovariables (like IIP, inflation, interest rate parity, oil trade index, and so on) on stock return (SR) in an OLS framework. In line with theory, we find a significant impact of predicted exchange rate, gold prices, risk free returns and international security returns on stock returns on the Index. We conclude that the relationship between FER and SR is a complex simultaneous one and it cannot be captured by a single equation model as has usually been done in extant literature.
  Keywords: stock returns; exchange rate movements; two-stage least square; interest parity; autoregressive distributed lag; ARDL; bounds testing.
  DOI: 10.1504/IJEPEE.2021.10038308
   
  
• Impact of COVID-19 on agriculture supply chain: potential mitigation and adaptive measures from an Indian perspective  
  by Sneha Kumari, V.G. Venkatesh, Yangyan Shi, K.K. Tripathy 
  Abstract: Pandemics, like COVID-19, are unprecedented with huge potential for long-term disruptions and exodus in supply chain management activities. This study explores the impact of COVID-19 on the agriculture supply chain and maps potential pandemic mitigation measures for effectively managing the agriculture supply chains. The study uses a systematic content analysis of 127 articles. It examines the coping behaviour of the supply chain segment of agriculture. The study has recommended potential measures to manage agriculture supply chains in a pandemic situation. It captures COVID-19 induced factors and events that have caused a gradual breakdown in the global agriculture supply chain specifically that of India. The impact and the potential short-term and long-term mitigation mechanisms are also summarised. The study has examined different factors causing injury to the agriculture supply chain activities and laid down potential mitigation mechanisms.
  Keywords: agriculture supply chain; pandemic; COVID-19; farm production.
  DOI: 10.1504/IJEPEE.2021.10039409
   
  
• Indias weak investment: empirical estimation at corporate and household level  
  by Ashwani Bishnoi 
  Abstract: Investment has remained a predominant source for enhancing the productivity led economic growth in an economy. Indian economy has noted slowdown in investment especially in private sector since 2011, even in the presence of high growth trajectory, eased financing conditions, accommodative monetary policy and eased business regulations. This puts forth ample scope for research enquiry to understand the explaining factors behind this disconnect. Moreover, the investment slowdown mainly led by the household sector has been overlooked by the existing literature. In this background, this paper aims to empirically investigate the key drivers of the weak private investment in India including the household investment. Study employs ARDL bound-testing approach for annual data (19702019) as well as quarterly data (2004q1 to 2019q4). The estimation using the later period helps in getting better insight about the ongoing public debate of investment slowdown. Empirical evidence suggests that the gaps of financial resources, monetary policy, fiscal policy, economic uncertainty, debt burden and fluctuating exchange rate are key derivers for the corporate and household investment in India
  Keywords: private investment; corporate; ARDL bounds-testing; household investment; India.
  DOI: 10.1504/IJEPEE.2021.10039623
   
  
• Do occupation, work status and gender cause variations in wages? Case of Indian labour market  
  by Sonu Madan, Surender Mor 
  Abstract: This paper attempts to examine variations in wage earnings of workforce contributing to Indian labour market as own-account workers and regular wage/salaried employees, employing GLM: ANCOVA, a combination of ANOVA and regression. Three-factor full factorial design has been used to explore earnings from work for different factors, i.e., occupation, work status and gender along with educational attainment of workers as a covariate. The findings report significant variations in the earnings from work in various occupations, i.e., highest for managers and lowest for elementary workers. In contrast, the work status exhibits less monetary rewards for own account workers than that of regular wage/salaried employees. The verdict further establishes the fact that male workers tend to earn more than their female counterparts. However, two-way and three-way interaction of occupation, work status and gender indicate that the monetary outcomes change significantly in response to consideration of the interaction of factor(s) of relevance.
  Keywords: ANCOVA; earning; gender; occupation; own-account workers; salaried employees; work force; work status.
  DOI: 10.1504/IJEPEE.2021.10040188
   
  
• Dynamic financial connectedness in emerging and developed countries during the COVID-19 outbreak  
  by Usman Arief, Marwan Asri, Mamduh M. Hanafi 
  Abstract: This study examines the dynamic financial connectedness in emerging and developed countries during the COVID-19 pandemic using the Diebold-Yilmaz (2014) connectedness index. The capital markets reaction during this pandemic provides a new insight into how exogenous shocks drive volatility across countries and increase their interconnectedness. We find that connectivity between capital markets in developed and emerging countries converged in the earlier 2020. Before the World Health Organization (WHO) declared the COVID-19 pandemic, the Shanghai Stock Exchange played a crucial role as an epicenter of the connectedness of shocks. In the period after WHOs declaration, two new epicenters emerged: the capital markets in Brazil and Hong Kong. Finally, the empirical results show that countries with high idiosyncratic risk (with high average log volatility before the pandemic) show amplified risks during the pandemic.
  Keywords: connectedness; dynamic; COVID-19; financial market; contagion; developed countries; emerging countries.
  DOI: 10.1504/IJEPEE.2021.10040475
   
  
• Extending Fama-French factors with interest rate changes: an empirical study of USA versus emerging markets  
  by Imran Hussain, Sudipa Majumdar 
  Abstract: This paper evaluates the effects of interest rate change on bank stock returns in the USA versus emerging markets by analysing the sensitivity of equally-weighted bank stock portfolios in the context of asset pricing models. The research makes a meaningful contribution to the existing literature on asset pricing models by incorporating interest rate change (Stone, 1974) into the Fama and French (2015) five-factor empirical model. Our dataset of monthly bank stock returns from January 2010 to June 2020 revealed that while the Fama-French (2015) asset pricing model offered a valid result of equity returns in the USA, size and investment factors had little impact on stock returns for banks in emerging markets. The volatility of interest rate had significant effect for USA and India. So, inclusion of interest rate change along with the Fama-French factors in the pricing of bank stocks added an important dimension and had important implications for policy makers and investors.
  Keywords: five-factor model; capital asset pricing model; CAPM; interest rate risk; bank stocks; emerging markets.
  DOI: 10.1504/IJEPEE.2021.10041080
   
  
• An empirical study of largest FDI acquisition in the technology sector: evidence from deal of Jio and Facebook  
  by Isha Gupta, T.V. Raman, Naliniprava Tripathy 
  Abstract: This paper tries to analyse the impact of the acquisition announcement of Jio by Facebook on the volatility of stock returns of Jio Platform Ltd. The study has been divided into three periods, pre-period, post-period, and whole period. The paper used the GARCH (1, 1) model to conclusively analyse the change in volatility after the acquisition of the company and the asymmetric EGARCH model to capture the leverage effect. The study results infer that the coefficient of the ARCH and GARCH model (+ ) becomes 1(0.11 + 0.89) in the post period which implies that volatility is persistent during the period. The leverage effect is evident in the study as the variance coefficient is negative in all periods and statistically significant which implies that every price change responds asymmetrically to the positive and negative news in the market. Thus, it can be concluded that the announcement has a significant favourable influence.
  Keywords: mergers and acquisitions; M&A; conglomerate M&A; Facebook-Jio; event study; GARCH (1; 1) model; EGARCH (1; 1) model.
  DOI: 10.1504/IJEPEE.2021.10042850
   
  
• International tourism demand in India: an empirical insight  
  by Subhendu Dutta, Aruna Kumar Dash 
  Abstract: The purpose of this research is to analyse the tourism demand in India from 14 major source countries between 19952017. We use the variables such as word-of-mouth, relative price, globalisation, GDP per capita, nominal exchange rate, destination preference, and the terrorist attack and employ panel data analysis. The empirical results of this study revealed that tourism demand is affected by word-of-mouth, GDP per capita, access to globalisation, and relative price. The study will help policy makers to identify the driving forces behind the growth of the tourism sector. The study suggests that there is a need for keeping the domestic price at a competitive level and augment globalisation efforts. Further, our findings support the need for, and the effectiveness of, positive word-of-mouth in promoting tourist arrivals through proper implementation of Athithi Devo Bhavah campaign which says that the guest is equivalent to God
  Keywords: ourism demand; destination preference index; globalisation; word-of-mouth; WOM; panel data analysis; India.
  DOI: 10.1504/IJEPEE.2021.10042944
   
  
• Non-performing assets, moral hazard and liquidity creation: evidence from Indian banks  
  by Naina Grover, Pankaj Sinha 
  Abstract: This study looks into the incidence of the moral hazard hypothesis in the Indian banks using the liquidity creation concept. Liquidity creation measure is considered to be more inclusive and comprehensive in measuring the risk-taking of a bank. The study uses data from 2005 to 2019 extracted from the database of the Reserve Bank of India. A fixed-effect model with Driscoll and Kraay standard errors and system GMM is deployed to ascertain the association between liquidity creation and NPAs. This study determines a significantly positive relationship between NPAs and liquidity creation in public sector banks, but this relationship is not evident in private banks. This study testifies the moral hazard hypothesis in public sector bank. This study highlights the perils associated with the recent mergers in public sector banks and how too big to fail might incentivise public banks to undertake more risks since there are already traces of the problem of moral hazard.
  Keywords: India; liquidity creation; moral hazard; non-performing assets; NPA; off-balance sheet activities; scheduled commercial banks.
  DOI: 10.1504/IJEPEE.2021.10043099
   
  
• Effects of resource mix and internationalisation on alliance portfolio configuration  
  by Wei He, Tantatape Brahmasrene 
  Abstract: Studies focusing on the strategic outcomes of alliance portfolios are receiving attention recently. However, only a handful research addresses the areas of determinants of the portfolio mix or its characteristics. This study attempts to fill this gap by investigating the key drivers of alliance portfolio configuration. Drawing on multiple theoretical lenses and a two-dimensional typology of portfolio composition, a longitudinal study is developed and applied to a sample of multinational firms in the global hospitality sector. The results suggest that alliance management experience, brand image, and organisational slack play significant roles in predicting the type of alliance portfolio configuration. Moreover, focal firms degree of internationalisation moderates the predicting effects. Using firm-specific factors, this study bridges the gap between firms internal resource mix and alliance portfolio complexity, and sheds new light on how alliance portfolio configuration is defined, measured, and predicted. Implications for policymakers are also discussed
  Keywords: strategic alliance; alliance portfolio complexity; alliance portfolio configuration; resource-based view; resource dependence.
  DOI: 10.1504/IJEPEE.2021.10043255
   
  
• Estimation of fiscal multipliers for India  
  by Bibhuti Ranjan Mishra, Bharadwaja Sastry Adiraju 
  Abstract: The multiplier remains an effective tool to evaluate the effects of the changes in government expenditure. In this paper, we estimate five multipliers using the SVAR framework. We report impact multipliers in the range 0.23 to 1.85 and cumulative multipliers in the range 0.45 to 5.45. Our results are in line with empirical literature and have important implications for the Government of Indias fiscal stance. We point out that since capital expenditure multipliers are greater than revenue expenditure multipliers, the government must rationalise revenue expenditure and spend more on building productive capital. Secondly, we recommend that capital budgets should be optimised towards components that provide the most productive effects. Finally, in light of the coronavirus-induced economic crisis, we recommend caution to ensure that greater revenue expenditure does not crowd out private investment and that a calibrated and coordinated monetary policy will be essential in tackling this issue
  Keywords: fiscal multipliers; fiscal policy; India.
  DOI: 10.1504/IJEPEE.2021.10043666
   
  
• The relationship between Islamic banking deposits and profitability: an evidence from Malaysia Islamic banks  
  by Roukia Bouhider 
  Abstract: The main objective of this paper is to analyse the relationship between the deposits and the profitability of 14 Malaysian Islamic banks over the 20062018 period by employing fixed effects panel data. The main independent variable is the deposits to assets ratio, and the return on assets (ROAs) is the main profitability measure. The findings of this study have reported a strong positive relationship between the bank deposits to assets ratio and profitability. The study recommended that Islamic banks in Malaysia embark on a serious effort to develop their own instruments to mobilise deposits and to use them in order to foster economic and social development, which would increase their future profitability and reduce their costs
  Keywords: Islamic banks; current deposits; saving deposits; Al-Wadiah; deposits; Al-Mudarabah; profit-sharing investment accounts; PSIA; panel data; profitability; Malaysia.
  DOI: 10.1504/IJEPEE.2021.10043873
   
  
• From conflict to empty stomachs, empty classrooms, and empty wallets  
  by Marcus Marktanner, Almuth Merkel 
  Abstract: This paper examines the direct and indirect effects of conflict on food insecurity, education, and income. We examine a panel dataset with 169 countries over the period from 1990 to 2017. To estimate the long-run equilibrium and short-run effects, we employ pooled OLS regression and error correction models, respectively. We find that the lagged indirect effects of conflict on income through an increase of food insecurity and reduced educational opportunities outweigh the direct effects by a factor of around 1.5. Our findings add to the literature on the long-term indirect effects of conflict. In order to illustrate the socioeconomic significance of our model, we discuss its simulation potential in the context of Jordan. As for policy implications, we argue that, whenever possible, humanitarian assistance programming should not end with saving lives by fighting conflict-induced malnutrition, but also include efforts for continued access to education.
  Keywords: conflict; education; food insecurity; empirical estimates; simulation model.
  DOI: 10.1504/IJEPEE.2021.10043874
   
  
• Does corporate governance play a dynamic role in mitigating opportunistic transactions? Evidence from India  
  by Nitya Nand Tripathi, Asha Binu Raj, Sudhakara Reddy Syamala, Aviral Kumar Tiwari 
  Abstract: This paper investigates the effect of corporate governance mechanism on various types of related party transactions (RPTs) in India. We examine whether the corporate governance mechanism helps to restrict the managements opportunistic behaviour of transferring resources from the company through RPTs or not. We find that the percentage of related party sales to total assets is between 6.4%37.98% and the percentage of related party expenses to total assets is in the range of 4.4%25.30% during the study period. Whereas, the percentage of loans given to related parties to total assets is between 5.0% to 26.0% and loans taken from related parties to total assets is 3.9% to 22.70%. The empirical findings show a negative relation between independent directors and RPTs. The findings can strategically facilitate the regulators to make necessary decisions which could strengthen the corporate governance mechanism to mitigate opportunistic transactions in terms of RPTs
  Keywords: corporate governance; related party transactions; audit committee; opportunistic transactions; corporate governance index; CGI; India.
  DOI: 10.1504/IJEPEE.2022.10044140
   
  
• Country specific and world productivity shocks and current account: does the relationship hold in case of India and the G20 group?  
  by Nikita Patial 
  Abstract: Intertemporal approach to current account became a fashionable tool in last few decades to study the lending and borrowing decisions of an economy in the international markets. Following, Glick and Rogoff (1995) theoretical model, this study empirically examines the link between Indias current account and its country specific productivity shocks using dynamic factor analysis approach to segregate world and country specific shocks. Our results suggest that Indias current account movements are independent of its country specific productivity shocks as opposed to the theory. The mean reverting nature of country specific shocks leads to consumption smoothing by agents, increasing savings in the economy, which offsets any impact of rise in investment. We also extend our analysis to a panel of G20 countries. This study reiterates the potential of intertemporal models to replace the enhanced versions of Mundell Fleming IS-LM framework in analysing key macroeconomic issues by banks, and other international institutions.
  Keywords: current account; productivity shocks; country specific productivity; global shock; G20 countries; investment; dynamic factor analysis; DFA.
  DOI: 10.1504/IJEPEE.2022.10044142
   
  
• Borrowers response to bank consolidation in India  
  by Nivedita Sinha, Saandra Nandakumar 
  Abstract: We assess the response of publicly-traded borrower-firms to bank consolidation announcements in India using an event study methodology. The results of our paper suggest that borrower-firms, on average, respond positively to the news of bank consolidation; however, the response is heterogeneous. We investigate if this variation in response depends on the primary banks characteristics and borrower-firms characteristics. The paper finds that borrowers of merging banks with a high ratio of gross non-performing assets (GNPAs) react more positively to the consolidation announcement than borrower-firms of relatively low GNPAs banks. The paper also suggests that large borrower-firms, and business groups affiliated firms, respond more positively to the bank consolidation announcement. The results of cross-sectional regression analysis imply that borrower-firms characteristics such as profitability, size, business group affiliation, firms age, and primary banks GNPAs are important determinants to the sensitivity of cumulative abnormal returns to bank consolidation news.
  Keywords: financial economics; financial intermediation; financial markets; event study; government policy and regulation; public sector banks; borrower-firms; bank consolidation; abnormal returns; business groups; India.
  DOI: 10.1504/IJEPEE.2022.10044143
   
  
• One country, two system: analysing contractual work arrangement and labour practices  
  by Sazzad Parwez, Kapil Meena 
  Abstract: This paper uses both theoretical and empirical methods to examine working conditions of contractual workers with illustrations on discriminative labour practices in mining units. The analysis mainly follows a descriptive approach and based on field data, but we have also used secondary data to support arguments. The primary data reflects on wage and other form of discrimination captured in interview with contractual workers of copper mining units in Madhya Pradesh and Rajasthan state. The most telling finding is significant use of contractual workers in these public units, indicates that the socio-economic background is detrimental to discriminatory behaviour in these mining units. Analysis suggests discrimination is higher for lower caste-based groups in context of education, experience, and skills levels. This informalisation of labour is causing considerable deterioration in working conditions, reflected by wage differential for and among contractual workers. This aggravates the situation for labour community.
  Keywords: workers; labour; contractualisation; discrimination; wage; India.
  DOI: 10.1504/IJEPEE.2021.10044354
   
  
• Are Chinese exports crowding out competitors? Evidence from Malaysian electrical and electronic exports  
  by Kok Onn Ting, Alessandro De Matteis 
  Abstract: The rapid expansion of Chinas production of electricals and electronics is benefiting Malaysia, which is exporting more intermediate parts and components to China to feed into its production networks, especially for finished goods assembly. However, Malaysia concurrently faces competition from China in exports to third markets and import penetration of own domestic markets. The positive side of Chinas rise is characterised in terms of complementary effects, and the negative side as competitive impacts. As Chinas effect on Malaysias electricals and electronics is not clear-cut, there is a need for combined analysis conducted at different levels. This paper combines the analysis of Chinese and Malaysian export performance in their major destination markets with the analysis of ongoing transformative processes in the production and trade of electricals and electronics in the two economies. Our findings highlight that Chinas effect on Malaysian electrical and electronic exports differs according to the market destination of the exports, with some trade war effects between the USA and China captured in the analysis. Overall, Malaysias response to Chinas rising exports has been to upgrade its value chain.
  Keywords: China’s effect; Malaysia trade; electricals and electronics; export sophistication.
  DOI: 10.1504/IJEPEE.2022.10044752
   
  
• Beyond unemployment rate: exploring the unemployment duration in Cote dIvoire  
  by Niango Sika Antoine Brice Adou 
  Abstract: This study explores unemployment duration in Cote dIvoire and focuses on the role of personal characteristics. Along with these characteristics, labour market variables are also explored. We use a discrete time proportional hazard model with census data from the National Statistics Institute. The data show that unemployment duration is higher in general but is quite sensitive to the sector of activity. The gender gap in the labour market is not huge. The results show that education influences positively the probability to find a job faster, while social capital has a mixed impact. Being married and unemployed is a positive signal for employer. Therefore, this study poses that hiring through agencies, which are more likely to match better job needs, can help reducing time spend in unemployment.
  Keywords: unemployment; survival; education; Cote d’Ivoire; social capital.
  DOI: 10.1504/IJEPEE.2022.10044755
   
  
• The determinants of financial performance at public services of regional hospital  
  by Wartono Wartono, Guntur Riyanto, Djoko Suhardjanto 
  Abstract: This study aims to test the factors that influence the financial performance of regional public hospital (Rumah Sakit Umum Daerah RSUD) with public service agency (Badan Layanan Umum BLU) status in Indonesia by putting an emphasise on four aspects, which are the income structure of BLU, cost efficiency, liquidity, and regional characteristics. The analysis is conducted on the data from 43 RSUD from 2013 to 2019 with a total observation of 215. Financial performance is measured using four indicators, namely asset turnover, fixed asset turnover, service revenue ratio divided by total assets and surplus (deficit) ratio divided by total income. The finding of this study shows that liquidity has a positive and significant effect on financial performance. Additionally, RSUD income structure that relies on service income has not been able to drive significant improvement in financial performance. This study also shows that there is no difference in financial performance between RSUD in Java and another region. The study finds that RSUD owned by district government has better financial performance compared to RSUD owned by the municipal government.
  Keywords: financial performance; public service agency; regional public hospital; income structure; cost efficiency; liquidity; regional characteristics.
  DOI: 10.1504/IJEPEE.2022.10045316
   
  
• Nonlinear ARDL approach for asymmetric effects of investor sentiment on asset pricing in an emerging Asian economy: the Malaysian experience  
  by Han Hwa Goh, Lee Lee Chong, Ming Ming Lai 
  Abstract: This paper addresses the issues pertaining to asset pricing model in Malaysian stock market, an emerging Asian economy, using monthly data between January 2001 and December 2015 for all the stocks on the main market of Bursa Malaysia and five different investor sentiment proxies (i.e., market-wide indicators). Employing NARDL nonlinear cointegration approach, we examine the causal relationship between stock excess returns and investor sentiment in the integrated Fama-French three-factor model. The empirical results suggest that the investor sentiment is an added risk factor to help explain directly the mispricing component of returns in the Fama-French three-factor model and thus bridging the current research gap between traditional and behavioural asset-pricing theories in Malaysia. Besides, this paper reveals that the stock returns are affected by sentiment in an asymmetric and nonlinear manner in either short- or long-run. In particular, we found that the immensity of positive changes of sentiment is significantly greater than that of negative changes of sentiment towards stock returns. These findings may help finance professionals to perform smart investing strategies using investor sentiment as a contrarian indicator
  Keywords: investor sentiment; asset pricing; asymmetric cointegration; emerging economy; Bursa Malaysia.
  DOI: 10.1504/IJEPEE.2022.10046790
   
  
• Exchange rate volatility and trade in Sub-Saharan African countries: evidence from augmented mean group estimator  
  by Shuaibu Sidi Safiyanu, Soo Yean Chua 
  Abstract: : Exchange rate plays a major role in trade transaction of Sub-Saharan African countries with their trading partners. This study examines the effects of exchange rate volatility on trade in 40 Sub-Saharan African countries from 19922018. The paper used augmented mean group as a preferred estimator to take account of cross-sectional dependency between the countries under investigation. The dynamic common correlated effect is also used for robustness of the findings. Empirical finding shows that lags of exports and imports have significant positive effects on the contemporaneous levels of exports and imports in Sub-Saharan African countries. Moreover, the coefficients of elasticity of imports and exports with respect to exchange rate volatility are positive. Thus, higher volatility stimulates both imports and exports trade in the region. The results also uncover unidirectional causality running from trading partners income to exports and imports trade, and also from exchange rate volatility to imports and exports trade
  Keywords: exchange rate volatility; trade; panel data; augmented mean group; AMG; Sub-Saharan African countries.
  DOI: 10.1504/IJEPEE.2022.10046800
   
  
• Long and short run drivers of the real exchange rate in Egypt (20022020)  
  by Hoda Mansour, Soliman Hassan 
  Abstract: Egypt is an emerging developing country which has a long history of utilising different exchange rate regimes. Since the liberalisation of its Egyptian pound in 2016, the country has been facing a set of challenges to stabilise its exchange rate. To suggest better policies, this paper examines the long and short run determinants of Egypts real exchange rate. Using Johansen and Juselius co-integration test, VAR, and an error correction model, the study analyses data from 2002 to 2020 for Egypt. The study concludes that, in the long run, growth rate, international reserves, government consumption, terms of trade and workers remittances all have a long-run impact on the real exchange rate, while the degree of openness has no significant impact. In addition, the study provides evidence that, on the short-run, the degree of openness and government consumption have significant impact on the real exchange rate. Results of this study infer a preference for a fixed or strictly managed exchange rate regime over a flexible regime.
  Keywords: real exchange rate; Johansen and Juselius co-integration test; vector autoregressive model; VAR model; Egyptian pound.
  DOI: 10.1504/IJEPEE.2022.10046804
   
  
• Economics and social cost of movement restrictions in Malaysia: an input-output analysis  
  by Muhamad Rias K.V. Zainuddin, Amirul Hamza Abdullah, Hakimah Nur Ahmad Hamidi 
  Abstract: The objective of this study is to calculate the monthly economic and social cost of the enacted movement control in Malaysia. Varying sectoral output shocks are considered in three scenarios, which are the movement control order (MCO), the conditional movement control order (CMCO), and the recovery movement control order (RMCO). This study employs input-output analysis in calculating the monthly cost of each movement control measure on the sectoral output and value-added and employment in Malaysia. Overall, the output from this study indicates that the MCO, CMCO and RMCO implementation cost the economic value-added by RM 14.3 billion, RM 7.9 billion and RM 1.8 billion. The social losses are explained by the number of job losses, where the MCO has the highest number of job losses (162,700 employees), and the low-skilled and skilled workers have the highest share. Several policy implications have been discussed in the conclusion.
  Keywords: COVID-19; movement control order; economic cost; social cost; employment; input-output analysis; Malaysia.
  DOI: 10.1504/IJEPEE.2022.10046809
   
  
• Mediating role of green innovation on green entrepreneurship and sustainable development: an empirical evidence from Indian companies  
  by Manoj Kumar Mishra, Sunil Kumar 
  Abstract: The current research has investigated the relationship between green entrepreneurship (GE) and sustainable development (SD) among Indian companies. The study also has captured the mediating effect of green innovation between GE and SD. A survey is conducted among 451 managerial level employees in Indian companies. The research then uses SPSS (version 22) and AMOS for the analysis of data. For testing the hypotheses of mediation were checked using PROCESS Macro tests in SPSS. The results indicated that green entrepreneurship has significant impact on green innovation and sustainable development. However, the partial mediating effect of green innovation has been found between green entrepreneurship and sustainable development. Practices of GE are the need of hour. If it is promoted and practiced by the companies, they will be the biggest beneficiaries of it. If their process includes green entrepreneurial practices, they will be able to achieve their long-term goals effectively
  Keywords: green entrepreneurship; green innovation; sustainable development; mediation; India.
  DOI: 10.1504/IJEPEE.2022.10046813
   
  
• Impact of systematic transaction cost on enterprise competitive strategy and performance research on Sany Heavy Industrys change of registered place  
  by Weiguo Kang, Haoran Ji, Yuan Li, Hanwen Xu 
  Abstract: The market mechanism and formal system in Chinas economic system are not perfect, and the government has absolute authority in the allocation of resources and has the right to intervene in the operation of enterprises. Systematic transaction costs are different among regions, even among different enterprises in the same region. Taking the change of Sany Heavy Industrys registered place as an example, from the perspective of systematic transaction cost, we use difference in difference and financial index analysis to study the reasons why Sany Heavy Industry leaves home. We find the explicit institutional transaction cost of Sany Heavy Industry rises significantly before the change of registered place, and the growth rate of explicit systematic transaction cost of Sany Heavy Industry slows down after the change. However, the implicit systematic transaction cost changes inversely, which affects the performance of enterprises. The research provides implications for the healthy development of the relationship between the government and private enterprises.
  Keywords: systematic transaction cost; competitive strategy; relocation of headquarters; property right theory; enterprise performance.
  DOI: 10.1504/IJEPEE.2022.10046825
   
  
• Investigating the growth factors of life insurance sector an ARDL approach  
  by Abhijit Chakraborty, Avijit Debnath, Ashim Kr Das 
  Abstract: Insurance sector is considered a significant contributor to the economic growth of economies across the world. The purpose of this study is to investigate the factors affecting growth potentials of life insurance sector in India. ARDL technique is used to investigate short-run and long-run relationships between life insurance sector growth represented by life insurance penetration and 13 independent variables under macro-economic, demographic and socio-cultural category using time series data from 19802018. The ARDL bounds testing procedure was used to check for co-integration. The study found that gross domestic product per capita, interest rate (deposit), young dependency ratio, gross capital formation, and education are significantly influencing life insurance sector growth in the long run. The short-run error correction model revealed speed of adjustment at 0.80 at 1% level of significance. The findings may help favourable policy formulation to support the life insurance sector growth in India.
  Keywords: life insurance sector; determinants; co-integration; ARDL; bounds test; economic growth; India; GDP per capita; macro-economic; demographic; socio-cultural.
  DOI: 10.1504/IJEPEE.2022.10046826
   
  
• The effect of audit committee characteristics on the firms performance: an empirical study of Pakistan Stock Exchange  
  by Sahibzada Kashif Ahmad, Atta Ur Rahman, Fahad Abdullah, Shabir Ahmad, Laila Taskeen Qaz 
  Abstract: The purpose of this study is to investigate the impact of audit committee characteristics on firms performance. We used gender diversity, size of the committee, frequency of audit meetings, financial expertise, and independence as audit committee characteristics and return on assets and return on equity as performance measures. A panel of 94 firms was investigated from 2015 to 2019 using a weighted least square regression. The overall results show that the size of the audit committee negatively affects the firms performance. While the frequency of meetings, expertise, and gender diversity positively impact the firms performance. Indicating the significance of frequent communication, experience, and presence of women in audit committees, respectively. Our study highlights insight for policymakers and regulators considering ongoing corporate governance and regulatory reforms in Pakistan.
  Keywords: corporate governance; audit committee characteristics; performance; Pakistan.
  DOI: 10.1504/IJEPEE.2022.10048785
   
  
• Diversion of loan use: evidence from rural West Bengal, India  
  by Moumita Poddar Rana, Tanmoyee Banerjee, Ajitava Raychaudhuri 
  Abstract: Present paper explores spending behaviour of loan proceeds and identifies the effect of different socio-economic and political factors on the probability of loan diversion using a primary household survey data drawn from four villages of state of West Bengal, India. Loan diversion refers to the incidence where institutional borrowers use total or part of their loan for purposes that was not specified during the borrowing. Survey reveals that institutional loans taken for working capital needs are mostly diverted either partly or fully and mainly for household expenditure. This study considers Heckman sample selection model, considering the sample selection bias. Results show that religion, age, support of political party and financial literacy of principal earner significantly increases probability of loan diversion. The study also investigates the joint probability of indebtedness and loan diversion; multiple borrowing and loan diversion; indebtedness and institutional borrowing and socio-economic determinants by using bivariate probit model.
  Keywords: loan diversion; financial literacy; multiple borrowing; indebtedness; institutional borrowing; sample selection bias; Heckman probit model; bivariate probit model; West Bengal; India.
  DOI: 10.1504/IJEPEE.2022.10048959
   
  
• Financial stability and macroeconomic risk: an outlook from emerging economies  
  by Rexford Abaidoo, Elvis Kwame Agyapong 
  Abstract: Financial stability or stability in the banking industry constitutes one of the core enabling conditions critical for economic growth and development among economies globally. This paper examines the impact of macroeconomic risk (instability in key macroeconomic variables) on stability in the banking industry using data from 32 countries in Sub-Saharan Africa (SSA) from 2001 to 2018. The study uses principal component analysis (PCA) constructed macroeconomic risk index and proxies financial stability by two indicators bank liquid reserves to bank assets ratio and bank Z score respectively. Empirical estimates examining the relationships in the study uses the two-step system generalised method of moments (GMM) model. The results suggest that macroeconomic risk (instability in the macroeconomic environment) contributes significantly to instability in the banking industry among economies in Sub-Sahara Africa; this conclusion is similar for the two measures of financial stability employed in the study. The results further suggest that trade liberalisation has significant moderating impact on the financial stability (bank liquid reserves to asset ratio) macroeconomic risk nexus. The empirical estimates additionally show that macroeconomic risk may negate any positive impact financial sector improvement may have on financial stability among economies in the sub-region.
  Keywords: financial stability; macroeconomic risk; principal component analysis; PCA; generalised method of moment; GMM.
  DOI: 10.1504/IJEPEE.2022.10049377
   
  
• COVID-19 pandemic and work behaviour of non-farm household enterprises: evidence from Nigerian data  
  by Obed I. Ojonta, Jonathan E. Ogbuabor 
  Abstract: This study investigated the influence of COVID-19 pandemic on the work behaviour of non-farm household enterprises (NHEs) in Nigeria using multinomial logistic regression technique and Nigerias 2020 Living Standard Measurement Survey data. Specifically, the study addressed two main questions: how has COVID-19 pandemic impacted on the work behaviour of NHEs in Nigeria? What other factors significantly influence the work behaviour of these enterprises? The results show that the influence of COVID-19 pandemic on the work behaviour of NHEs in Nigeria is negative and significant. The results further indicate that other key drivers of the work behaviour of NHEs in Nigeria include: sufficient soap to wash hands, skipping a meal, thought of eating less, and running out of food. Consequently, the study recommended that government should ensure that NHEs are adequately funded during and after the pandemic in order to strengthen their operations on a sustainable basis.
  Keywords: COVID-19 pandemic; work behaviour; non-farm household enterprises; multinomial logit model; Nigeria.
  DOI: 10.1504/IJEPEE.2022.10052680
   
  
• Economic Policy in the Agro-Industrial Complex and Agriculture of Russia in the Age of Intellectual Machines: Challenges and Perspectives  
  by Ahmed G. Buchaev, Zoya Sh. Babaeva, Ekaterina P. Zhigulina, Tamara B. Zhuravleva 
  Abstract: This paper aims at determining challenges, substantiating perspectives, and developing recommendations for improving the economic policy in Russia’s agro-industrial complex and agriculture in the age of intellectual machines. The research results show that challenges for the economic policy in Russia’s agro-industrial complex and agriculture in the age of intellectual machines are connected to mismatch between the priority of the components of the digital economy and the proportions of their development in 2019. The perspectives of improving the economic policy in Russia’s agro-industrial complex and agriculture in the age of intellectual machines are connected to overcoming the determined disproportion and stimulating the development of the digital economy’s components according to their priority. Originality of this research consists in empirical study of the perspectives of development of agro-industrial complex and agriculture based on intellectual machines and development of the practice-oriented recommendations for economic policy in the sphere of food security.
  Keywords: economic policy; agro-industrial complex; agriculture; age of intellectual machines; food security; digitalisation; Russia.
  DOI: 10.1504/IJEPEE.2024.10065218
   
  
• Globalisation as a Factor of Training of Digital Personnel and Intelligent Machines in Emerging Economies: International cooperation vs. Global Competition  
  by Elena Bratukhina, Irina P. Lapteva, Igor V. Denisov, Yerlan B. Zhailauov, Stanislav Bencic 
  Abstract: The goal of this paper is systemic study of globalisation as a factor of training of digital personnel and intelligent machines in emerging economies and substantiation of the perspectives and development of recommendations for optimising the influence of globalisation on these processes in view of the alternatives in the form of international cooperation and global competition. Uniqueness of this paper consists in compilation and use of the authors’ classification of emerging economies by the criterion of their globalisation with differentiation of emerging economies that are closed for globalisation and emerging economies that are open for globalisation; novelty is due to refusal from usual differentiation of stimulation and restraint of globalisation. In the countries that are closed to globalisation, global competition, deregulation, and an increase in the level of globalisation to 98.50 points (38.44%) are recommended. In the countries open to globalisation, it is recommended to strengthen regulation, develop international cooperation and reduce the level of globalisation to 39.14 points (by 43.84%).
  Keywords: economic policy; training of digital personnel; training of intelligent machines; international cooperation; global competition; globalisation; emerging economies.
  DOI: 10.1504/IJEPEE.2024.10065219