Current Issue : October - December Volume : 2015 Issue Number : 4 Articles : 5 Articles
Although it may seem natural to argue that foreign direct investment (FDI) can convey great\nadvantages to host countries. This paper finds that FDI flows to Sub-Saharan Africa\neconomies unaffected by conflict and political instability exceed those with crisis. For FDI to\nstrive in these countries, it must introduce sound economic policies and make the country\ninvestor friendly. There must be political stability, sound economic management and well\ndeveloped infrastructure....
This paper investigates the impact of foreign direct investment (FDI) inflows on economic\ngrowth in Cote D�Ivoire during the 1975-2011 period. The selection of this African nation is\nmotivated by the rapid inflows it has experienced over the past decade. Using unit root and\ncointegration analysis, the resulting error correction model (ECM) suggests that gross fixed\ncapital formation (GFCF) has a short-run positive impact on economic growth, while FDI,\nthe repatriation of net income abroad, and periods involving structural breaks, have a\nnegative effect on economic growth in Cote D�Ivoire. In addition, the negative error\ncorrection term indicates that deviations from long-run per capita growth during the current\nyear are corrected relatively quickly in the following year, ceteris paribus. The unexpected\nnegative effect of FDI on economic growth may be due to the significant repatriation of\nprofits and dividends the country has experienced in recent years....
The article proposes an algorithm to qualitatively determine the dynamic state of an\neconomic system. The base data for the algorithm are the current values of the parameter that\ndescribes the deviation of the system from equilibrium. The method of phase planes is\npartially used. The interpolation of the statistical data of the system parameter as a function of\ntime, as well as the parametric definition of the forces that act on the system, allows for the\ndetermination of its potential functions and points of equilibrium. The characteristics of the\npoints of equilibrium, namely their extrema type, determine the areas of the systems stability\nand instability. The use of standard computer programs allows for the analytical and graphical\n(by analysing the form of the potential function) determination of the dynamic stability of a\nsystem, by looking at the current parameters of the system. A demonstration of the algorithm\nis given in an example....
This paper employs a constant conditional correlation bivariate EGARCH-in-mean model to\ninvestigate interactions among the rate of inflation, stock returns and their respective\nvolatilities. This approach is capable of accommodating all the possible causalities among the\nfour variables simultaneously, and therefore could deliver contemporary evidence of the\nnexus between monetary stability and stock market. The postwar dataset of the US inflation\nand stock returns is divided into pre- and post- Volcker period and the estimation results show\nsome significant changes of inflation-stock return relation, as well as indirect links between\ntwo volatilities. The core findings in this study suggest that promoting monetary stability\ncontributes to more mutual interactions among the four variables, in particular, common\nstock is a more effective hedge against inflation, and the level of inflation rate is central to\nexplaining the relation between the two volatilities....
Microfinance Institutions (MFIs) play vital role in developing countries. This study is dedicated to inspect the productivity change in microfinance Institutions (MFIs) in the SAARC region. A panel of 85 MFIs with five diamond information status from 2003 to 2011 with annual frequency is investigated in the analysis. Inputs and outputs used in the study are selected on the basis of double bottom line objective of MIF; s. the methodology which we adopt is Malmquist index through DEA software. The study will be helpful to find that whether the MFIs of SAARC countries effectively manage cost efficiency, technical efficiency and scale efficiency? Also the study will guide the MFIs to remove the deficiency (If any) in the above said forms of efficiencies. Also the total productivity change with respect time and country is investigated in the analysis. On average a positive TFP growth of MFIs in the SAARC region is documented except from 2005 to 2006 and 2007 to 2009. The efficiency of these MFIs will be helpful for completion of the financial sector and will improve the overall competence and growth. The study will be helpful for both welfarist and institutionalisms to achieve their objectives. We found many article related to measure the productivity change in different region but there is limited articles and research work related on SARRC region. This study has been carried out to find either Micro finance institutions are working efficiently or not....
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