A. Gyeke-dako, E. Agbloyor, A. Agoba, F. Turkson, E. Abbey
{"title":"Central Bank Independence, Inflation, and Poverty in Africa","authors":"A. Gyeke-dako, E. Agbloyor, A. Agoba, F. Turkson, E. Abbey","doi":"10.1177/09726527221078434","DOIUrl":"https://doi.org/10.1177/09726527221078434","url":null,"abstract":"This article discusses the extent to which central bank independence (CBI) can be used to mitigate the regressive nature of inflation. Using 44 Sub-Saharan African (SSA) countries from the period 1970–2012, the article first examines whether CBI has any influence on inflation by distinguishing between legal independence and governor turnover rates. The evidence shows that CBI helps control inflation, and that inflation generally reduces poverty, and this effect is even stronger, in an environment of low CBI. JEL Codes: E02, E58, E31, I32","PeriodicalId":44100,"journal":{"name":"Journal of Emerging Market Finance","volume":null,"pages":null},"PeriodicalIF":1.5,"publicationDate":"2022-04-18","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"48778209","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Economic Policy Uncertainty Versus Sector Volatility: Evidence from India Using Multi-scale Wavelet Granger Causality Analysis","authors":"Vamsidhar Ambatipudi, Dilip Kumar","doi":"10.1177/09726527221078352","DOIUrl":"https://doi.org/10.1177/09726527221078352","url":null,"abstract":"The present study examines the relationship between Indian economic policy uncertainty (IEPU) and the different sector volatilities (SVs) of the Indian economy over the period 2006–2021. The relationship is studied using a multi-scale correlation framework, combining wavelet coherence analysis with the Granger causality test. The findings indicate a stronger relationship between the IEPU and SV for all sectors during COVID-19, primarily in the medium term. While IEPU led to SV during the global financial crisis (GFC), the SVs led to the IEPU during the COVID-19. However, the Granger causality test provides evidence that, in the long term, the SVs cause the IEPU while the IEPU leads to SV in the short term. The IT sector is crucial as its volatility leads to IEPU across all scales. These results have substantial implications for policymakers and portfolio managers. JEL Codes: G10, G17, G32","PeriodicalId":44100,"journal":{"name":"Journal of Emerging Market Finance","volume":null,"pages":null},"PeriodicalIF":1.5,"publicationDate":"2022-04-18","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"49446804","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Characterizing the Over-indebted: An Event History Analysis of Financial Diaries","authors":"Sachit Rao, N. Parthasarathy","doi":"10.1177/09726527221079957","DOIUrl":"https://doi.org/10.1177/09726527221079957","url":null,"abstract":"Low-income households (HHs) face vagaries in income and expenses. These often require the HH to borrow and can cause the HH to become over-indebted. Financial Diaries capture information on incomes, expenses, loans, and shocks with fine granularity and at frequent intervals. In this article, such a dataset is analyzed using the event history analysis approach in order to quantify the risk of HHs becoming over-indebted. Over-indebtedness is defined using two rubrics: monthly debt-to-income ratio and sacrifices made by the HH. The results of this analysis may be used by institutions to customize financial instruments based on the characteristics of an HH. JEL Codes: C410, C810, C830","PeriodicalId":44100,"journal":{"name":"Journal of Emerging Market Finance","volume":null,"pages":null},"PeriodicalIF":1.5,"publicationDate":"2022-04-18","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"43434864","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Does Difference in Environmental Standard Influence India’s Bilateral IIT Flows? Evidence from GMM Results","authors":"Sakshi Aggarwal, D. Chakraborty, N. Banik","doi":"10.1177/09726527221088412","DOIUrl":"https://doi.org/10.1177/09726527221088412","url":null,"abstract":"In the recent past, India has entered into several regional trading agreements (RTAs) with the objective of export promotion, on the one hand, and deepening participation in the global value chains, on the other. The consequent rise in Indian exports had been accompanied by a simultaneous import growth, given the trade preferences for partners through RTAs as well as ongoing unilateral tariff reforms. The rise in simultaneous exports and imports has enhanced the country’s intra-industry trade (IIT) level. Recently, India has engaged in RTA negotiations with several developed countries, which are characterized by more stringent environmental standards. The current analysis attempts to identify factors that influence India’s bilateral aggregate IIT index in a dynamic panel framework. In particular, it attempts to assess whether greater divergence in environmental standards adversely influence India’s IIT patterns. The empirical estimates reveal that India’s IIT is found to be relatively higher with countries that are technologically more advanced and have relatively stringent environmental standards. The observation indicates that India is possibly specializing in relatively low technology-intensive products vis-à-vis its developed trade partners. The analysis concludes that India would be better off by facilitating innovation and adhering to a higher level of environmental standard. JEL Codes: F13, F14, F15, F18","PeriodicalId":44100,"journal":{"name":"Journal of Emerging Market Finance","volume":null,"pages":null},"PeriodicalIF":1.5,"publicationDate":"2022-04-14","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"46780690","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Understanding the Finance–Growth Nexus from a Multidimensional Perspective","authors":"Guangdong Xu","doi":"10.1177/09726527221091403","DOIUrl":"https://doi.org/10.1177/09726527221091403","url":null,"abstract":"This paper discusses the multidimensional nature of banking development and its effects on economic growth. Previous studies focused on the quantity dimension and overlooked other dimensions of banking development, which may have led to serious omitted variable bias in exploring the determinants of economic growth. However, incorporating other dimensions, such as banking efficiency, into growth models has proven to be a challenging task. More efforts are needed to construct indicators that can be used to proxy banking development in a more inclusive, precise, and consistent manner in future studies. JEL Codes: G21; O16; O47","PeriodicalId":44100,"journal":{"name":"Journal of Emerging Market Finance","volume":null,"pages":null},"PeriodicalIF":1.5,"publicationDate":"2022-04-12","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"41588186","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Daniel Ofori‐Sasu, E. Agbloyor, Saint Kuttu, J. Abor
{"title":"Central Bank Policies and Market Power Over the Business Cycle in Africa","authors":"Daniel Ofori‐Sasu, E. Agbloyor, Saint Kuttu, J. Abor","doi":"10.1177/09726527221086492","DOIUrl":"https://doi.org/10.1177/09726527221086492","url":null,"abstract":"This article empirically examines the impact of the business cycle on the relationship between individual central bank policies and market power. We present a representative sample of 52 African economies over the period 2006–2018. We find that monetary, macro-prudential and central bank independence policies increase market power. The study found that, in the long run, market power reacts positively to changes or adjustments made to a central bank policy framework. We show that the individual central bank’s policy framework increase market power, when interacted with business cycle. JEL Codes: E3, E5, E61, G21, L10, L51, M21","PeriodicalId":44100,"journal":{"name":"Journal of Emerging Market Finance","volume":null,"pages":null},"PeriodicalIF":1.5,"publicationDate":"2022-04-04","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"41767207","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Socioeconomic Determinants of Household Investment Portfolio in India","authors":"Priya Rampal, S. Biswas","doi":"10.1177/09726527221082067","DOIUrl":"https://doi.org/10.1177/09726527221082067","url":null,"abstract":"This study examines the determinants of asset holding by low- income households in India using the second wave of the Indian Human Development Survey. Our exploratory analysis indicates that even low-income households seem to hold portfolios that are in line with financial goals such as education and marriage. Employing parametric and non-parametric methods, the study finds that affordability is one of the critical predictors of asset holding by households. Further, we find that higher educational attainment, being more socially connected and having confidence in financial institutions are positive predictors of individual asset holding and the likelihood of holding a diversified portfolio. The study discusses policy implications emanating from the findings for designing financial products along with improving penetration.","PeriodicalId":44100,"journal":{"name":"Journal of Emerging Market Finance","volume":null,"pages":null},"PeriodicalIF":1.5,"publicationDate":"2022-03-29","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"49172020","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Calling the Shots: Determinants of Financial Decision-making and Behavior in Domestic Migrant Households in India","authors":"Vinith Kurian, Shashank Sreedharan, F. Valenti","doi":"10.1177/09726527221082005","DOIUrl":"https://doi.org/10.1177/09726527221082005","url":null,"abstract":"This article explores financial decision-making and behavior in migrant households. Literature on migration and financial inclusion usually focuses on either migrant workers and their financial needs or remittance flows and their effects on development, leaving the subject of household decision-making significantly underresearched. Using primary data from two sample surveys, one with migrant workers and one with their household members, we employ descriptive analysis to study the financial decision-making processes and outcomes. Our sample is mostly composed of male Indian domestic migrants from Bihar, Jharkhand, and eastern Uttar Pradesh. Our analysis considers the following migrant typology dimensions: duration of migration cycle, skills, and destination. Key household characteristics explored in our study include household size, the number of financial contributors in the household, the presence of an older male and children below the age of 18, and overall household income. Our results show that household members compete for influence over financial decisions and power balances change significantly whether the migrant is at home or at destination. These dynamics play an important role in determining household financial preferences. This suggests that financial products and interventions targeting specific financial behavior (for instance, financial literacy programs) need to take these factors into account since different households and different migrant types make these choices differently. JEL Codes: D14, O15, O16","PeriodicalId":44100,"journal":{"name":"Journal of Emerging Market Finance","volume":null,"pages":null},"PeriodicalIF":1.5,"publicationDate":"2022-03-28","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"45172317","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"An Endless Bargain: A Participatory Approach to Understanding Intra-household Finance","authors":"Shriyam Gupta, Dhwani Yagnaraman, Aditya Jagati","doi":"10.1177/09726527221080681","DOIUrl":"https://doi.org/10.1177/09726527221080681","url":null,"abstract":"While factors influencing intra-household dynamics, preferences of individual members, and their impact on household financial decision-making have been studied, the actual process of bargaining, and decision-making process remain uncaptured. We take a qualitative approach to address this gap and do so in two distinct ways. We first conduct a photo elicitation session (n = 55) to understand gender differences in financial responsibility, dynamics in purchase and saving decisions, and conflict resolution. Then, using findings from the photo elicitation, we develop a gamified instrument to observe financial decision-making in real-time between couples (n = 32). We find that husbands and wives have separate spheres of responsibility within the household, which determine their financial decision-making ability. Further, we find that income, investment and children motivate “big” financial expenditures, while savings is understood as an act of cutting expenses. Finally, we discuss the opportunities to employ new qualitative methods to study and capture behavioral dynamics. JEL Codes: D130, G510, G59","PeriodicalId":44100,"journal":{"name":"Journal of Emerging Market Finance","volume":null,"pages":null},"PeriodicalIF":1.5,"publicationDate":"2022-03-08","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"45538869","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Daitri Tiwary, K. Das, Jagdish Shettigar, P. Misra
{"title":"Exchange Rate Volatility and Financial Stress: Evidence from Developing Asia","authors":"Daitri Tiwary, K. Das, Jagdish Shettigar, P. Misra","doi":"10.1177/09726527221078634","DOIUrl":"https://doi.org/10.1177/09726527221078634","url":null,"abstract":"The study investigates the role of financial stress in triggering exchange rate volatility in developing Asia, where instability in financial markets contributes to the extent of exogenous shocks. We investigate volatility clustering in nominal exchange rate (NER) of dollar-denominated domestic currencies of developing Asia. Using country-level monthly time series data from 2006 to 2019 of NER and financial stress for seven representative economies of developing Asia, namely, Philippines, Indonesia, Malaysia, India, Republic of Korea, Singapore, and Thailand, we construct conditional volatility of returns. With volatility clustering in dollar-denominated exchange rates, we find significant bi-directional and predictive causality in exchange rate volatility and financial stress using vector autoregressive model and test for Granger’s causality. Our findings corroborate with the third-generation model of currency crises in the context of emerging economies. For developing Asian nations, our study implicates the strength of the financial system impacting the level and spread of stress, inducing exchange rate volatility. Our empirical model propounds that though stress is driven by multiple factors, management of exchange rate volatility in emerging economies will need to address problems not only in the foreign exchange market, but also in other financial sectors. JEL Codes: G01, F31, C58","PeriodicalId":44100,"journal":{"name":"Journal of Emerging Market Finance","volume":null,"pages":null},"PeriodicalIF":1.5,"publicationDate":"2022-03-06","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"45393461","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}