March 2017 (Global Economy and Finance Journal)

March 2017 (Global Economy and Finance Journal)

Total Articles - 4

Pages 1 – 11

Author: Farhana Ahmed and Md Mahbubul Hakim

This paper investigates the relationship between remittances and economic growth in Togo. Using time series data over a period of 42 years (1974-2015) for Togo, we apply Johansen cointegration test methods, followed by three-step vector equilibrium correction mechanism (VECM) for long-run causality and Wald test for short-run causality along with pairwise-Granger causality test. Our result confirms a long-run bi- directional Granger causality exists between remittances and economic growth in Togo. However, no short-run causal relationship exist between remittances and economic growth. The paper also discusses policy issues that comes up from the consequences of the analysis. The results of this study would help the government and policy makers to take appropriate domestic policies in the area of migration and remittances for Togo.

Pages 12 – 27

Author: Wenjuan Xie and Angela Deng

We study the factors driving the differences in profitability of large commercial banks in the United States and in EU and non-EU countries from 2004-2014. Most relevant bank-specific and macroeconomic variables are reviewed and selected from the literature. Pooled sample estimation and panel data tests are conducted associating these factors with Return on Equity. Our main findings are: macroeconomic factors have more impact on U. S. banks’ profitability, while size and GDP growth significantly impact foreign banks’ profitability. In comparing U. S. and EU banks, we find significant differences in the explanatory power of size, cash adequacy and real interest rate. The significance and contribution of this study are from the advancement of knowledge in the frontier of banking industry performance research and from the innovative direct comparison between U. S. and EU banks.

Pages 28 – 46

Author: Akhter Faroque

This paper proposes a methodology for diagnosing and predicting housing bubbles before they burst. The proposal is implemented in two steps. In step 1 we apply three innovative stock-bubbles tests to Canada’s provincial housing markets. This allows us to classify provinces into three categories: those that have not experienced any; those that have experienced in the past; and those that are currently experiencing and may also have experienced in the past episodes of bubble-like explosive growth in the price-rent ratio. To determine whether explosive growth in the latter two categories of provinces is the result of changes in fundamentals or excessive speculation, in step 2 we use the dating chronologies for explosive growth from step 1 and probit models to evaluate the ability of many fundamentals to predict future bubble formation.

Pages 47 – 59

Author: Leena Ajit Kaushal

FDI has been one of the most preferred means of Internationalisation for firms in the developing economies. The significant emergence of MNEs from the developing economies has attracted academicians’ interest across the globe. Inward FDI signals country’s attractiveness to the foreign investors whereas outward FDI signals country’s competence to venture beyond domestic boundary. OFDI from India has increased sharply since the beginning of the 2000s. An attempt is made of identify country-specific push factors encouraging Indian overseas investments for the period 1991-2014 using time series data. The study considers the eclectic paradigm of Dunning framework and four main FDI motivations.

Total Articles- 4

All citation information on this page will be exported. help