Hameed A. Khan, Umair Khan, L. Jiang, Muhammad Asif Khan, Syed Hasanat Shah
{"title":"The Role of China’s Exchange Rate on the Trade Balance of Sub-Saharan Africa: a Gravity Model Approach","authors":"Hameed A. Khan, Umair Khan, L. Jiang, Muhammad Asif Khan, Syed Hasanat Shah","doi":"10.2478/cer-2019-0032","DOIUrl":"https://doi.org/10.2478/cer-2019-0032","url":null,"abstract":"Abstract This study seeks to investigate theimpactof China’sexchange rate onthe trade balance of 41 Sub-Saharan African countries for the period from 1994 to 2016. Using an augmented gravity model, the grouped and ungrouped results of the study confirm the elasticity and absorption approaches of the trade balance. Similarly, the robustness check, by dividing the sample period into two sub-periods (2005–2016 and 1994–2004), also confirms the elasticity and absorption approaches of the trade balance.","PeriodicalId":44249,"journal":{"name":"Comparative Economic Research-Central and Eastern Europe","volume":null,"pages":null},"PeriodicalIF":0.6,"publicationDate":"2019-12-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"41323462","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":"Education Level and Income Disparities: Implications for Financial Inclusion through Mobile Money Adoption in South Africa","authors":"Charles Nyoka","doi":"10.2478/cer-2019-0036","DOIUrl":"https://doi.org/10.2478/cer-2019-0036","url":null,"abstract":"Abstract Financial inclusion has recently become an issue of concern the world over for governments, policymakers, non-governmental organizations (NGOs), and financial and non-financial institutions alike. McKinnon (1973) and Shaw (1973), in seminal presentations, brought the world’s attention to the importance of an effective financial system for economic development. In recent years, there has been growing theoretical and empirical works showing the strong linkages between financial development with economic growth and poverty alleviation. After conducting statistical analysis using Stata version 14 for Windows with a multivariate binary logistic regression modeling technique applied, this paper tested and concluded that there is a statically significant relationship between educational levels on the one-hand and income levels on the other on the probability of one having a mobile banking account in South Africa. From a policy perspective, this information will assist policymakers in making more informed decisions with respect to education, and from the banking fraternity point of view it will help, them in the developments of products that are more in line with the population’s education and income levels.","PeriodicalId":44249,"journal":{"name":"Comparative Economic Research-Central and Eastern Europe","volume":null,"pages":null},"PeriodicalIF":0.6,"publicationDate":"2019-12-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"46048570","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":"Productivity Performance of the Service Sectors in European Union Countries","authors":"Joanna Wyszkowska-Kuna","doi":"10.2478/cer-2019-0029","DOIUrl":"https://doi.org/10.2478/cer-2019-0029","url":null,"abstract":"Abstract Economic development has resulted in structural transformation towards economies based on services, which has raised some concerns about the limited opportunities for sustaining productivity growth. The aim of this paper is to examine total factor productivity (TFP) growth in the service sector in comparison with total industries and the manufacturing sector, as well as within the service sector. The study is based on the data from the EU-KLEMS database (2017), and it covers the years 1995–2015. It refers to EU countries, making it possible to carry out a comparative analysis between countries, in particular between the ‘old’ and ‘new’ member states. The study demonstrates that productivity growth in services was significantly lower than in manufacturing, but compared with total industries, the disparity was not significant. Productivity growth was usually higher in the ‘new’ EU countries than in the ‘old’ ones, except for information and communications services, which, on the whole, were the main driving force behind the productivity growth in services.","PeriodicalId":44249,"journal":{"name":"Comparative Economic Research-Central and Eastern Europe","volume":null,"pages":null},"PeriodicalIF":0.6,"publicationDate":"2019-12-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"48002029","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":"Regional Aspects of the Development of Clustering in the Dairy Branch","authors":"I. Novikov","doi":"10.2478/cer-2019-0034","DOIUrl":"https://doi.org/10.2478/cer-2019-0034","url":null,"abstract":"Abstract In this paper, we study the classical and modern approaches to the formation of regional agro-industrial clusters. In the current market conditions, the creation of a cluster based on the existing regional infrastructure is impractical. In most cases, clusters are called holding structures that include the full cycle of production, processing and marketing of agricultural products, for example, “dairy clusters” – there are traditional groups of companies that formally follow the classical cluster principles, but do not give individual participants in the production process sufficient organizational and legal autonomy. The conditions for the development of innovation within the cluster, as well as the mechanism for creating the scientific and innovation component of the cluster as a fully-fledged newly created cluster element are investigated. We show that the cluster should be created on the basis and strict adherence to fundamental organizational and economic principles. In particular, while in holdings the economic result of the activity is aimed at achieving the goals of the parent company, in a cluster the maximum interest in the result and the satisfaction of the economic interests of all participants in equal measure should be laid. Moreover, the classical cluster approach in the current market conditions may be unrealizable and the author’s concept of cluster development is preferable.","PeriodicalId":44249,"journal":{"name":"Comparative Economic Research-Central and Eastern Europe","volume":null,"pages":null},"PeriodicalIF":0.6,"publicationDate":"2019-12-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"48543128","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":"A Gravity Model Approach towards Pakistan’s Bilateral Trade with SAARC Countries","authors":"W. Jan, M. Shah","doi":"10.2478/cer-2019-0030","DOIUrl":"https://doi.org/10.2478/cer-2019-0030","url":null,"abstract":"Abstract This research paper attempts to estimate the bilateral trade of Pakistan with SAARC countries using a gravity model of trade. This panel study covers the period from 2003 to 2016. The empirical results are obtained through pooled OLS, fixed-effects, and random-effects estimators. On the basis of Hausman test results, the paper concentrates only on the findings of the fixed-effects model. The empirical findings reveal that the GDPs of both Pakistan and the partner country have a positive impact on bilateral trade. Market size has a negative impact on trade and this is justified on the basis of the absorption effect. Similarly, distance and exchange rate also have a negative correlation with bilateral trade. The study finds that Pakistan has very low trade with India and Afghanistan, despite the common border. A common language has a positive but insignificant impact on Pakistan’s bilateral trade. The Paper also attempts to calculate the trade potential of Pakistan. The findings reveal that Pakistan has high trade potential with all SAARC member countries except the Maldives and Afghanistan.","PeriodicalId":44249,"journal":{"name":"Comparative Economic Research-Central and Eastern Europe","volume":null,"pages":null},"PeriodicalIF":0.6,"publicationDate":"2019-12-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"49451679","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":"Do Remittances Enhance Financial Development in Transitional Markets?","authors":"Kunofiwa Tsaurai, Patience Hlupo","doi":"10.2478/cer-2019-0033","DOIUrl":"https://doi.org/10.2478/cer-2019-0033","url":null,"abstract":"Abstract The paper explored (1) the impact of remittances on financial development and (2) whether the interaction between remittances and human capital development had an influence on financial development in transitional economies using the dynamic GMM approach, with data ranging from 1996 to 2014. Remittances were found to have had a non-significant positive influence on financial development in transitional economies when stock market turnover, stock market value traded, domestic credit to the private sector by banks, and public bond sector development were used as measures of financial development. When stock market capitalisation, domestic credit to the private sector by financial sector, and private bond sector development were used as measures of financial development, remittances had a non-significance negative effect on financial development. Using all other measures of financial development except stock market capitalisation (which produced a negative sign), the interaction between remittances and human capital development had an insignificant positive influence on financial development. Transitional economies are therefore urged to avoid over-relying on remittance inflow and human capital development as sources of financial development.","PeriodicalId":44249,"journal":{"name":"Comparative Economic Research-Central and Eastern Europe","volume":null,"pages":null},"PeriodicalIF":0.6,"publicationDate":"2019-12-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"48980549","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":"Reserve Currency Status as a Safe Asset Determinant. Empirical Evidence from Main Public Issuers in the Period 2005–2017","authors":"Joanna Bogołębska, Ewa Feder-Sempach, Ewa Stawasz-grabowska","doi":"10.2478/cer-2019-0023","DOIUrl":"https://doi.org/10.2478/cer-2019-0023","url":null,"abstract":"Abstract Safe assets are recognized as being the cornerstone of contemporary financial systems. Due to financial globalization and massive international capital flows, they transformed into global safe assets, meaning that both demand and supply sides can be created by international investors. The article consists of two main parts. The first one concentrates on the theoretical issues of safe assets: definitions, attributes, categories of investors who search for them, as well as categories of suppliers. The theoretical considerations lead to the conclusions that only debt instruments can be used as safe assets, and due to limited substitutability between private and public issues, only the latter can perform this function properly, especially in times of stress. In the context of global safe asset considerations, it seems reasonable that only countries issuing reserve currencies can become public issuers of safe assets. The empirical analysis presented in the second part of the article confirms the theoretical predictions. A study of sovereign bond yield differentials conducted for two groups of countries (issuers of reserve currency and non-issuers but possessing the highest credit ratings) shows that in the period 2005–2017, the spreads in the first group were depressed by the mere fact they held the status of a reserve currency issuer.","PeriodicalId":44249,"journal":{"name":"Comparative Economic Research-Central and Eastern Europe","volume":null,"pages":null},"PeriodicalIF":0.6,"publicationDate":"2019-08-19","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"43543170","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":"A Comparative Analysis of Fiscal Policy Changes in Selected European Union Countries outside the Eurozone","authors":"Agata Szymańska","doi":"10.2478/cer-2019-0027","DOIUrl":"https://doi.org/10.2478/cer-2019-0027","url":null,"abstract":"Abstract The aim of this article is to investigate the fiscal policy changes in six Central and Eastern European countries outside the Eurozone: Bulgaria, the Czech Republic, Croatia, Hungary, Poland and Romania. The analysis covers the period from 2004 to 2017. The study uses changes in the cyclically-adjusted primary balance as a main indicator to assess the fiscal policy stance. The results indicate that, in general, over the period from 2004 to 2017, the fiscal stance in these countries was somewhat contractionary.","PeriodicalId":44249,"journal":{"name":"Comparative Economic Research-Central and Eastern Europe","volume":null,"pages":null},"PeriodicalIF":0.6,"publicationDate":"2019-08-19","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"44212677","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":"The Role of Exchange Rates in the Stock Price Development of Chemical Companies in the Visegrad Four Countries","authors":"J. Šimáková, N. Rusková","doi":"10.2478/cer-2019-0026","DOIUrl":"https://doi.org/10.2478/cer-2019-0026","url":null,"abstract":"Abstract The aim of the paper is to evaluate the effect of exchange rates on the stock prices of companies in the chemical industry listed on the stock exchanges in the Visegrad Four countries. The empirical analysis was performed from September 2003 to June 2016 on companies from the petrochemical and pharmaceutical industry. The effect of the exchange rate on stock prices is analyzed using Jorion’s approach on monthly data. In contrast to the selected petrochemical companies, the pharmaceutical companies did not use any hedging instruments in the tested period. The effect of the exchange rate on the stock price was proved only in the case of companies from the pharmaceutical industry. This suggests that exchange rate risk could be eliminated by using hedging instruments.","PeriodicalId":44249,"journal":{"name":"Comparative Economic Research-Central and Eastern Europe","volume":null,"pages":null},"PeriodicalIF":0.6,"publicationDate":"2019-08-19","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"48895690","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":"The Adaptive Market Hypothesis and the Day-of-the-Week Effect in African Stock Markets: the Markov Switching Model","authors":"Adefemi A. Obalade, P. Muzindutsi","doi":"10.2478/cer-2019-0028","DOIUrl":"https://doi.org/10.2478/cer-2019-0028","url":null,"abstract":"Abstract In line with the Adaptive Market Hypothesis (AMH), the objective of this study is to investigate how the day-of-the-week (DOW) effect behaves under different bull and bear market conditions in African stock markets, and to examine the likelihood of being in a bull or bear regime for each market. A Markov Switching Model (MSM) was employed as the analytical technique. The results show that the DOW effect appears in one regime and disappears in another, in all markets, as rooted in the AMH. Lastly, all markets, except the Johannesburg Stock Exchange have a higher tendency to be in a bearish state than a bullish one. Our findings show that active investment management may yield profits for investors investing in most African markets during bearish conditions.","PeriodicalId":44249,"journal":{"name":"Comparative Economic Research-Central and Eastern Europe","volume":null,"pages":null},"PeriodicalIF":0.6,"publicationDate":"2019-08-19","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"43643542","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}