In Bangladesh, migrant worker’s remittances constitute one of the most significant sources of external finance. This paper investigates the existence of relation between remittance inflow and GDP and the causal link between them in Bangladesh by employing the Granger causality test under a VECM framework. Using time series data over a 38 year period, we found that growth in remittances does lead to economic growth in Bangladesh. In addition to the relationship, this paper also points out some issues that are working as impediments in getting remittance and give some recommendations to overcome those impediments.
Unemployment in Bangladesh: Challenges and prospects Md Jakir Hossaion
Though it was a group presentation but most of the data are designed by me. Jakir Hossain - Student - Dhaka University Campus, Dhaka, Dhaka Division, Bangladesh - University of Dhaka.
Socio-economic Impact of Remittance on Households: A Study on Khulna, Bangladeshiosrjce
Foreign remittance to Bangladesh now become one of the vital sources of foreign exchange earnings
and it also plays a significant role by reducing the foreign-exchange constraint and improving the balance of
payments, ensuring imports of various types of capital goods, and raw materials for industrial development.
Furthermore, it has also increased the supply of savings and investment for capital formation and development
in country’s economic condition and thus it accelerates economic development of a country. But this study
attempted to evaluate the impact of foreign remittances on socio-economic condition of households in Khulna
city. This paper uses various data of households of Khulna city to analyze the impact of foreign remittances on
the socio-economic condition of households. The results of this analysis were compared to those households
who do not receive remittances to clearly identify the decision of the households to spend remittances in
different sector. Unlike to other studies, this study reveals that households receiving remittances spend less on
food consumption, consumer durables and other consumer goods than do households who do not receive any
remittances. This study finds that households receiving remittances spend heavily on various investment
activities like land purchase, building construction, other investment activities and this investment constitutes
more than half of the remittances received during the last 12 months counted from August 2012 to July 2013.
This study also finds that households receiving remittances in Khulna city spend more on education than do
households having no remittances which is a good sign of any economy as investment in education is treated as
investment in human capital. However, this study also finds that foreign remittances help households to spend
more on social ceremonies, households’ services and electrical goods which indicate improved living standard
and socio-economic condition.
In modern industrial economies, the budget is the key instrument for the execution of government economic policies. A government budget is often passed by the legislature, & approved by the chief executive-or president. For example, only certain types of revenue may be imposed & collected. Property tax is frequently the basis for municipal & county revenues, while sales tax &/or income tax are the basis for state revenues, & income tax & corporate tax are the basis for national revenues.
Unemployment in Bangladesh: Challenges and prospects Md Jakir Hossaion
Though it was a group presentation but most of the data are designed by me. Jakir Hossain - Student - Dhaka University Campus, Dhaka, Dhaka Division, Bangladesh - University of Dhaka.
Socio-economic Impact of Remittance on Households: A Study on Khulna, Bangladeshiosrjce
Foreign remittance to Bangladesh now become one of the vital sources of foreign exchange earnings
and it also plays a significant role by reducing the foreign-exchange constraint and improving the balance of
payments, ensuring imports of various types of capital goods, and raw materials for industrial development.
Furthermore, it has also increased the supply of savings and investment for capital formation and development
in country’s economic condition and thus it accelerates economic development of a country. But this study
attempted to evaluate the impact of foreign remittances on socio-economic condition of households in Khulna
city. This paper uses various data of households of Khulna city to analyze the impact of foreign remittances on
the socio-economic condition of households. The results of this analysis were compared to those households
who do not receive remittances to clearly identify the decision of the households to spend remittances in
different sector. Unlike to other studies, this study reveals that households receiving remittances spend less on
food consumption, consumer durables and other consumer goods than do households who do not receive any
remittances. This study finds that households receiving remittances spend heavily on various investment
activities like land purchase, building construction, other investment activities and this investment constitutes
more than half of the remittances received during the last 12 months counted from August 2012 to July 2013.
This study also finds that households receiving remittances in Khulna city spend more on education than do
households having no remittances which is a good sign of any economy as investment in education is treated as
investment in human capital. However, this study also finds that foreign remittances help households to spend
more on social ceremonies, households’ services and electrical goods which indicate improved living standard
and socio-economic condition.
In modern industrial economies, the budget is the key instrument for the execution of government economic policies. A government budget is often passed by the legislature, & approved by the chief executive-or president. For example, only certain types of revenue may be imposed & collected. Property tax is frequently the basis for municipal & county revenues, while sales tax &/or income tax are the basis for state revenues, & income tax & corporate tax are the basis for national revenues.
Remittances - Economic Growth and Developmenttutor2u
Remittances are monies sent by people living and working overseas back to their country of origin – usually sent back to their families. To what extent are remittance inflows an important / significant contributor to economic growth and development in lower and middle income developing countries?
The presentation highlights the status of Bangladesh economy, its challenges and prospects in future. Current scenario of Bangladesh economy along with the investment perspective of the country has been highlighted in a well manner.
Presentation on Inflation in Bangladesh by Monir Hossen.pptxMonir Hossen
The topic of inflation in Bangladesh encompasses a comprehensive exploration of its various facets. The discussion commences with an introduction and definition, highlighting the phenomenon as the escalation of general price levels, gauged through annual percentage increments. It delves into the different types of inflation, encompassing demand-pull inflation associated with an increase in money supply, cost-push inflation resulting from elevated production costs, and the rapid ascent of galloping inflation.
Causes behind inflation are thoughtfully dissected, ranging from the impact of global events like the pandemic and the Russia-Ukraine war, to domestic factors such as increasing money supply, liberal debt policies, shortages of essential goods like food, and amplified production costs. The narration then shifts its focus to the inflation rate within Bangladesh, presenting figures for different years and months, showcasing the nuances within this economic trend. The disparities between food and non-food product inflation rates, as well as urban and rural inflation rates, are thought-provoking aspects explored.
The effects of inflation are presented with a balanced perspective, acknowledging both the positive and negative consequences that this economic phenomenon entails. A pivotal section explores the strategies to control inflation, encompassing monetary policy measures, fiscal interventions, and other pertinent actions that authorities may undertake.
In conclusion, the narrative underscores the potential harm associated with high inflation rates, while recognizing the beneficial aspects of short-term, mild inflation. The exploration of inflation in Bangladesh serves as a microcosm of the intricate global interplay between economic factors that shape the financial landscape of nations.
It is a presentation of Bangladesh Studies,so here you will learn about how to growth up Bangladesh Economics from 1971.
Hopefully you will like this.
Thank you.
Ldc graduation of Bangladesh: Issues and Challenges by Dr. Md. Taibur RahmanDr. Md. Taibur Rahman
Graduation of Bangladesh from LDC status have been discussed in this presentation. It covers Conceptual issues,
How Bangladesh compares with of other LDCs,
Graduation implications,
Towards sustainable graduation: Importance of productive capacity, Challenges to sustainable graduation and
Policy issues
Impact of IMF loan on Pakistan's economy: In long run and short runAyesha Majid
To keep the balance of payments in check and to meet the financial obligations government of Pakistan has signed 13th bailout with IMF. This bailout has laid several conditions on the Pakistani government including those on taxes and subsidies, government spending, interest rate, foreign exchange rate and Pakistan's borrowing from China.
Whether the program turns to be beneficial or detrimental for the economy depends how the public responds to the measures and how thoughtfully the government implements it.
The Review of Industrial Policies in Bangladesh from 1971 - 2014Hasanul Banna
The Review of Industrial Policies in Bangladesh from 1971 - 2014.
The Main Points of this assignment is
The Review of Industrial Policies in Bangladesh from 1971 - 2014.
The Review of Industrial Policies in Bangladesh from 1971 - 2
Industrialization is an essential pre -requisite for rapid and sustained economic development and social progress.
Modernization and structural transformation of the economy and diversification of the economic base and standard of living of the people are the universally recognized dynamic benefits arising from industrial development.
Industrialization is thus pursued as an overriding development objective in its own right.
In the past, efforts towards industrialization in Bangladesh were made under changing economic paradigm and political economy regimes. Since independence in 1971, a total of ten industrial policies have been formulated and adopted for industrial development of Bangladesh.
Concept of Industrial Policy.
The policy contents of industrial policy are now getting wider and wider. While the traditional role of industrial policy.
to influence the allocation of resources to industry, i.e., policies that affect the infrastructure of industry in general, such as the provision of industrial sites, roads, ports, and electric power,
to regulate the internal organization of particular industries, such as industrial restructuring, consolidation of firms, and output restrictions, and
To influence the growth of small and medium scale enterprises (SMEs), etc. remains as before, industrial policies are now directed at achieving on-economic goals.
Main Theme of Industrial Policy In Bangladesh
It has been 43 years since Bangladesh’s independent. Since then the country has formulated ten industrial policies.
The country till now has gone through 10 policies:
Importance of Industrial Policies in Bangladesh
The key to poverty alleviation lies in the generation of productive employment through rapid economic growth and structural transformation of the economy away from agriculture and toward industry.
While the slow growth of the manufacturing sector may be attributed to factors like energy shortage, reduced availability of bank credit, poor inflow of foreign direct investment (FDI) labor unrest, and poor law and order conditions no less responsible are the inconsistent policies.
The market failure approach makes public policy to focus basically on supplying lacking inputs: physical capital, skills, technology, etc. While this is an important policy area, developing countries also tend to suffer from a lack of demand for such inputs.
Market failures are not always easy to locate except in the most obvious situations (namely, education, infrastructure, etc.) and, when they can be located, their seriousness may not be apparent.
There is what amounts to a “private sector failure”, when a firm’s goal
A presentation paper on Economic Inequality in Developing Country. The paper shows how the economic inequality in developing country is, how it is measured, and how it affects the economy of a developing country. By Sadman Joa.
Roman Romashkin
POLICY SEMINAR
Virtual Event - Food Policy Research and Capacity Development in Eurasia
Co-Organized by the Eurasian Center for Food Security (ECFS), World Bank Group, and IFPRI
DEC 2, 2020 - 07:30 AM TO 09:00 AM EST
Remittance inflow and economic growth the case of georgiaAzer Dilanchiev
Abstract:
Remittance inflow become one of the main source of capital flows in the world. It is noted that remittance is
very effective in promoting household welfare and as an alternative source of capital inflow. However in it
uncertain whether or not it leads to economic growth. This article examines the effects of remittances inflow
on economic growth in Georgian republic. The impact of remittance inflow on GDP growth was analyzed and
tested by Unit Root Test, Johansen Co-integration and VAR Granger Causality/Block Exogeneity Wald Tests.
In the paper the quarterly data interval from the first quarter of 1999 to third quarter of 2015 was used. As a
result it was found out that that there is a nexus between remittance and GDP and it is concluded that
remittance leads to increase in GDP growth.
Domestic Vs International Remittance flow: Economic Analysis of the Value of ...iosrjce
International migration from Bangladesh has become a defining characteristic of the country and is
considered to be an important livelihood earning strategy for the people. Especially since 1980s, large
scale labour migration has become a common phenomenon of Bangladesh. This paper has examined the
financial benefit receipt between the domestic and the international migration. Financial benefit is measured in
terms of the value of remittance transfer from the migrants. An ordinary least square (OLS) model is used to
estimate the objectives of the study. For this purpose secondary dataset has been used from the Household
Income Expenditure Survey (HIES 2010) from Bangladesh Bureau of Statistics (BBS). Two types of migration
have been considered in the paper – domestic and International migration. The affiliated cost of holding a
passport, completion of visa procedure, transportation, and accommodation distinguishes international
migration from domestic migration. There has been significant transfer of domestic remittance from urban to
rural/sub-urban areas of Bangladesh but nevertheless the term remittance popularly known as value (both in
cash and kind) transferred from abroad. The paper suggests households receive significantly high remittance
from international migrants than domestic migrants. Hence the rational instinct of a human being is to migrate
himself internationally. Besides, migrants with higher level of education send more remittance to households
regardless of domestic or international migration.
Remittances - Economic Growth and Developmenttutor2u
Remittances are monies sent by people living and working overseas back to their country of origin – usually sent back to their families. To what extent are remittance inflows an important / significant contributor to economic growth and development in lower and middle income developing countries?
The presentation highlights the status of Bangladesh economy, its challenges and prospects in future. Current scenario of Bangladesh economy along with the investment perspective of the country has been highlighted in a well manner.
Presentation on Inflation in Bangladesh by Monir Hossen.pptxMonir Hossen
The topic of inflation in Bangladesh encompasses a comprehensive exploration of its various facets. The discussion commences with an introduction and definition, highlighting the phenomenon as the escalation of general price levels, gauged through annual percentage increments. It delves into the different types of inflation, encompassing demand-pull inflation associated with an increase in money supply, cost-push inflation resulting from elevated production costs, and the rapid ascent of galloping inflation.
Causes behind inflation are thoughtfully dissected, ranging from the impact of global events like the pandemic and the Russia-Ukraine war, to domestic factors such as increasing money supply, liberal debt policies, shortages of essential goods like food, and amplified production costs. The narration then shifts its focus to the inflation rate within Bangladesh, presenting figures for different years and months, showcasing the nuances within this economic trend. The disparities between food and non-food product inflation rates, as well as urban and rural inflation rates, are thought-provoking aspects explored.
The effects of inflation are presented with a balanced perspective, acknowledging both the positive and negative consequences that this economic phenomenon entails. A pivotal section explores the strategies to control inflation, encompassing monetary policy measures, fiscal interventions, and other pertinent actions that authorities may undertake.
In conclusion, the narrative underscores the potential harm associated with high inflation rates, while recognizing the beneficial aspects of short-term, mild inflation. The exploration of inflation in Bangladesh serves as a microcosm of the intricate global interplay between economic factors that shape the financial landscape of nations.
It is a presentation of Bangladesh Studies,so here you will learn about how to growth up Bangladesh Economics from 1971.
Hopefully you will like this.
Thank you.
Ldc graduation of Bangladesh: Issues and Challenges by Dr. Md. Taibur RahmanDr. Md. Taibur Rahman
Graduation of Bangladesh from LDC status have been discussed in this presentation. It covers Conceptual issues,
How Bangladesh compares with of other LDCs,
Graduation implications,
Towards sustainable graduation: Importance of productive capacity, Challenges to sustainable graduation and
Policy issues
Impact of IMF loan on Pakistan's economy: In long run and short runAyesha Majid
To keep the balance of payments in check and to meet the financial obligations government of Pakistan has signed 13th bailout with IMF. This bailout has laid several conditions on the Pakistani government including those on taxes and subsidies, government spending, interest rate, foreign exchange rate and Pakistan's borrowing from China.
Whether the program turns to be beneficial or detrimental for the economy depends how the public responds to the measures and how thoughtfully the government implements it.
The Review of Industrial Policies in Bangladesh from 1971 - 2014Hasanul Banna
The Review of Industrial Policies in Bangladesh from 1971 - 2014.
The Main Points of this assignment is
The Review of Industrial Policies in Bangladesh from 1971 - 2014.
The Review of Industrial Policies in Bangladesh from 1971 - 2
Industrialization is an essential pre -requisite for rapid and sustained economic development and social progress.
Modernization and structural transformation of the economy and diversification of the economic base and standard of living of the people are the universally recognized dynamic benefits arising from industrial development.
Industrialization is thus pursued as an overriding development objective in its own right.
In the past, efforts towards industrialization in Bangladesh were made under changing economic paradigm and political economy regimes. Since independence in 1971, a total of ten industrial policies have been formulated and adopted for industrial development of Bangladesh.
Concept of Industrial Policy.
The policy contents of industrial policy are now getting wider and wider. While the traditional role of industrial policy.
to influence the allocation of resources to industry, i.e., policies that affect the infrastructure of industry in general, such as the provision of industrial sites, roads, ports, and electric power,
to regulate the internal organization of particular industries, such as industrial restructuring, consolidation of firms, and output restrictions, and
To influence the growth of small and medium scale enterprises (SMEs), etc. remains as before, industrial policies are now directed at achieving on-economic goals.
Main Theme of Industrial Policy In Bangladesh
It has been 43 years since Bangladesh’s independent. Since then the country has formulated ten industrial policies.
The country till now has gone through 10 policies:
Importance of Industrial Policies in Bangladesh
The key to poverty alleviation lies in the generation of productive employment through rapid economic growth and structural transformation of the economy away from agriculture and toward industry.
While the slow growth of the manufacturing sector may be attributed to factors like energy shortage, reduced availability of bank credit, poor inflow of foreign direct investment (FDI) labor unrest, and poor law and order conditions no less responsible are the inconsistent policies.
The market failure approach makes public policy to focus basically on supplying lacking inputs: physical capital, skills, technology, etc. While this is an important policy area, developing countries also tend to suffer from a lack of demand for such inputs.
Market failures are not always easy to locate except in the most obvious situations (namely, education, infrastructure, etc.) and, when they can be located, their seriousness may not be apparent.
There is what amounts to a “private sector failure”, when a firm’s goal
A presentation paper on Economic Inequality in Developing Country. The paper shows how the economic inequality in developing country is, how it is measured, and how it affects the economy of a developing country. By Sadman Joa.
Roman Romashkin
POLICY SEMINAR
Virtual Event - Food Policy Research and Capacity Development in Eurasia
Co-Organized by the Eurasian Center for Food Security (ECFS), World Bank Group, and IFPRI
DEC 2, 2020 - 07:30 AM TO 09:00 AM EST
Remittance inflow and economic growth the case of georgiaAzer Dilanchiev
Abstract:
Remittance inflow become one of the main source of capital flows in the world. It is noted that remittance is
very effective in promoting household welfare and as an alternative source of capital inflow. However in it
uncertain whether or not it leads to economic growth. This article examines the effects of remittances inflow
on economic growth in Georgian republic. The impact of remittance inflow on GDP growth was analyzed and
tested by Unit Root Test, Johansen Co-integration and VAR Granger Causality/Block Exogeneity Wald Tests.
In the paper the quarterly data interval from the first quarter of 1999 to third quarter of 2015 was used. As a
result it was found out that that there is a nexus between remittance and GDP and it is concluded that
remittance leads to increase in GDP growth.
Domestic Vs International Remittance flow: Economic Analysis of the Value of ...iosrjce
International migration from Bangladesh has become a defining characteristic of the country and is
considered to be an important livelihood earning strategy for the people. Especially since 1980s, large
scale labour migration has become a common phenomenon of Bangladesh. This paper has examined the
financial benefit receipt between the domestic and the international migration. Financial benefit is measured in
terms of the value of remittance transfer from the migrants. An ordinary least square (OLS) model is used to
estimate the objectives of the study. For this purpose secondary dataset has been used from the Household
Income Expenditure Survey (HIES 2010) from Bangladesh Bureau of Statistics (BBS). Two types of migration
have been considered in the paper – domestic and International migration. The affiliated cost of holding a
passport, completion of visa procedure, transportation, and accommodation distinguishes international
migration from domestic migration. There has been significant transfer of domestic remittance from urban to
rural/sub-urban areas of Bangladesh but nevertheless the term remittance popularly known as value (both in
cash and kind) transferred from abroad. The paper suggests households receive significantly high remittance
from international migrants than domestic migrants. Hence the rational instinct of a human being is to migrate
himself internationally. Besides, migrants with higher level of education send more remittance to households
regardless of domestic or international migration.
Inflation Rate, Foreign Direct Investment, Interest Rate, and Economic Growth...ijtsrd
The article aimed to investigate the relationship between inflation rate, foreign direct investment, interest rate, and economic growth of ten 10 emerging Sub Sahara African countries for the period 1998 to 2018. The random effects GLS regression estimator was employed to examine the equilibrium relationship between the variables. From the results, foreign direct investment had a significantly positive influence on GDP, while the inflation rate and interest rate trivially positively predicted GDP. Based on these findings, the study recommended that the government of emerging nations should put prudent measures to improve inflation, interest rate, and foreign direct investment within the economy for sound wellbeing. Ofori Charles | Shuibin Gu | Takyi Kwabena Nsiah | Eric Dwomoh "Inflation Rate, Foreign Direct Investment, Interest Rate, and Economic Growth in Sub Sahara Africa: Evidence from Emerging Nations" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-4 | Issue-6 , October 2020, URL: https://www.ijtsrd.com/papers/ijtsrd31105.pdf Paper Url: https://www.ijtsrd.com/economics/international-economics/31105/inflation-rate-foreign-direct-investment-interest-rate-and-economic-growth-in-sub-sahara-africa-evidence-from-emerging-nations/ofori-charles
Economic Development Implications of the International Financial Institutions...AJHSSR Journal
ABSTRACT : Employment generation has remained central to the policy goal of economic development in
Nigeria. In view of this, an empirical investigation into the link between international financial institutions loans
and employment rate was carried out in this study. Specifically, the effects of loans from the International
Finance Corporation (IFC), International Development Association (IDA), Paris Club and African Development
Bank on employment rate were examined. The data for the variables were obtained from the United Nations
Development Programme Human Development Report, National Bureau of Statistics, World Development
Indicators and International Debt Statistics. The empirical investigation followed an ex post facto research
design with the application of descriptive statistics, unit root and cointegration tests as well as error correction
model and Granger causality tests as the data analysis techniques. The unit root test results revealed that all the
variables are stationary at first difference, which justifies the test for cointegration using the Johansen method. It
was found from the cointegration test results that long run relationship exists among the variables in the model.
The parsimonious ECM revealed that IDA and African Development Bank loans have a significant positive
effect on employment rate. This highlights the substantial role played these funding sources in generating
employment in Nigeria. On the contrary, International Finance Corporation and Paris Club do not have any
significant effect on employment rate. Owing to the findings, it is recommended that loans available to Nigeria
from the international development association should be channeled to investments in critical infrastructure and
agriculture development to generate employment and achieve economic development.
KEYWORDS: Employment generation, institutions loans, International Finance Corporation, IDA, Paris Club
and African Development Bank
Foreign Direct Investment, Trade and Economic Growth: A New Paradigm of the B...Akhilesh Chandra Prabhakar
The present study begins by surveying broadly supports the assertion that regional integration in the case of the
BRICS is not adequately paid attention except with very few original or significant contributions. This research
examines the existing pattern in the areas of trade and investment with a view to locate in the development
context. It was also essential to make a theoretical investigation on literature of trade along with the empirical
one. The survey broadly supports the frequent, through usually undocumented, assertion that BRICS was an area
had tended to neglect and to which they had made few if any original or significant contributions. Alongside, this
study panel data on BRICSs, where the results confirm that foreign direct investment (FDI), trade and economic
growth indicate the presence of long-run sustainable equilibrium relationship between them. It is thus important
that policymakers to remove obstacles to FDI inflows and improve the respective absorptive capacity in order to
reap maximize positive growth effects. This study also discussed that how China performed well through
attracting FDI inflows and maintained trade balance.
The aim of this study is to examine the impact of international capital flows on the economic growth in Jordan during the period from 2005 to 2017, The study also examines trends and composition of capital inflows. The study used descriptive analytical research method which was appropriate for the purpose of research. By using time series data, the study found that Foreign Direct Investment (FDI), foreign portfolio investment (FPI), grants (Gr) and Worker remittances (WR) are positively affecting the economic growth direct contribution. Based on the research results, the study came with a several recommendations, the most important recommendation is; the government of Jordan should create and relax the rules and regulations to attract more investors, and also the government should work hand in hand with the developed countries to create economic and employment opportunities, improve the country’s competitiveness, and expand growth within the private sector so that everyone in Jordan has the opportunity to contribute to a brighter future.
Remittances and Household Welfare:
A Case Study of Pakistan
by
Vaqar Ahmed, Guntur Sugiyarto, and Shikha Jha
Sustainable Development Policy Institute
Asian Development Bank
FINANCIAL DEEPENING AND FOREIGN DIRECT INVESTMENT IN NIGERIAAJHSSR Journal
ABSTRACT : This study examined the impact of FDI on financial deepening in Nigeria from 1980 to 2022.
The research questions address the trend of FDI and financial deepening in Nigeria and the relationship between
the two variables. The study will used econometrics analysis basically cointegration and error correction model
to estimate the relationship between FDI and financial deepening . The findings of this researchrevealed that
foreign direct investment exert significant impact on financial deepening in Nigeria along the long run and short
run horizon. The findings have implications for policymakers, the Nigerian government, investors, and
businesses. Understanding the impact of FDI on financial deepening helpssuggests appropriate policy measures
and strategies to enhance Nigeria's financial sector and spur economic growth. Additionally, the study
contributes to the existing literature on FDI and financial deepening, providing valuable insights for future
research in this area.
KEY WORDS: Foreign Direct Investment; Financial Deepening; Relationship
Current Trends and Issues in Foreign Direct Investment Post Covid 19 Pandemicijtsrd
No commercial sector is left untouched by the brunt of the Covid 19 pandemic. The global economic picture is ravaged due to the crisis and is still recovering from it. Among all, Foreign Direct Investment FDI is one of the significantly impacted domains. There has been a significant fall in the FDI due to the disrupted financial market across the globe. This paper discusses the current issues relating to FDI and the policies and measures adopted to limit the damage. The paper also focuses on the recent trends post pandemic to balance the upheaval caused to health and the economy. There are various initiatives that the nations are taking to improve the position of FDI. The initiatives taken by various countries post pandemic include changes in fiscal policies, tariff rates, investment policies, and other related policies.The FDI is an excellent source for supporting the economies. It helps a nation financially and, on many fronts, such as technology, innovation, assisting in coping with the pandemic, and much more. Therefore, in the light of the importance highlighted, it is crucial to study the challenges and reasons for the decline in FDI. There is also a need to attract more and more economists and industrialists to come forward and take the initiative to help build the economy by formulating policies, plans, and strategies to recover from the loss. The research conducted reveals that reliance is placed on sustainable development by both the investors and the government. Although the industries have started gearing up, it will take time to catch up and fix the prevailing FDI issues. An argument is made that one such issue which leads to a decline in FDI is the lack of transparency. The evidence is presented to show that how lack of transparency has resulted in decline in the FDI. The discussion will revolve around the primary issues concerning the fall in FDI and the plans adopted to revive it in the present scenario. Gunjan Agarwal "Current Trends and Issues in Foreign Direct Investment Post-Covid-19 Pandemic" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-6 | Issue-1 , December 2021, URL: https://www.ijtsrd.com/papers/ijtsrd47987.pdf Paper URL: https://www.ijtsrd.com/management/accounting-and-finance/47987/current-trends-and-issues-in-foreign-direct-investment-postcovid19-pandemic/gunjan-agarwal
This study aims to analyze the effect of foreign direct investment (FDI) on new job creation, and pays attention to factors interrelated to employment by using the case of Afghanistan. Using time series data form 2003 to 2017, this paper explore the driving forces and reduction potentials of employment in Afghanistan with consideration for dynamic changes within the traditional OLS and standardize OLS model. The results show that exchange rate plays a dominant role in increasing employment in Afghanistan. And exports and inflation rate plays a dominant role in decreasing employment in Afghanistan. All variables are co-integrated and the analysis of the impulse response function and variance decomposition turns out to be synchronous. Furthermore, in the short run export and inflation rate are more critical in reduction potentials of employment in Afghanistan. Policies should be advised to control inflation rate and illegal export and improve the investment projects to attract more FDI into the economy for quick adjustment purpose in case of the shock to the system.
Banks Npa & Impact on Indian Economy
Impact of Fii on Indian Economy
Indian Economy After Independence : India
Impact Of Foreign Trade On India
Essay On Growth Of India
Indian Economic History Essay
The Economic Reforms Of India Essay
India s Effect On The Indian Economy
Essay on India—an Emerging Power in the World
Salient Features of Indian Economy
The Economic Growth Of India Essay
The Economic Growth Of India Essay
Effect of Rising Oil Prices on Indian Economy
Key Drivers Of India s Economic Growth
Impact of Tourism on Indian Economy
Impact on Indian Economy
Wto and Its Impact on Indian Economy
India s Development And Growth Essay
This paper investigated the Contribution of RMG to the National Economy of Bangladesh. The understanding between the buyer and supplier is now better than before. At present, Bangladesh is the world-second largest apparel exporter. If the growth continues, within a few years Bangladesh will be the world-largest apparel exporter.
This study examined the influence of the characteristics of the audit committee on Palestinian firms’ value. The research explores precisely the effect on the Audit Committee characteristics’ efficiency, namely, independence, expertise, evaluating the relationship among dependent and independent variables. Secondary data collected from a list of companies were registered in the Palestine Stock Exchange from 2011 to 2018. Individual variables considered are the independence & expertise of the audit committee, whereas the ROA is employed as the dependent variable as an indicator of a firm’s value. The results showed that the Audit Committee’s independence & expertise substantially positive with ROA. The study concluded that the audit committee’s characteristics are enhancing firm performance. The implications of this study’s findings can be used by decisions and policymakers, the firm’s management, and other stockholders’ interests to create reliable ties between agents and the principals.
There is increasing acceptability of emotional intelligence as a major factor in personality assessment and effective human resource management. Emotional intelligence as the ability to build capacity, empathize, co-operate, motivate and develop others cannot be divorced from both effective performance and human resource management systems. The human person is crucial in defining organizational leadership and fortunes in terms of challenges and opportunities and walking across both multinational and bilateral relationships. The growing complexity of the business world requires a great deal of self-confidence, integrity, communication, conflict, and diversity management to keep the global enterprise within the paths of productivity and sustainability. Using the exploratory research design and 255 participants the result of this original study indicates a strong positive correlation between emotional intelligence and effective human resource management. The paper offers suggestions on further studies between emotional intelligence and human capital development and recommends conflict management as an integral part of effective human resource management.
This paper examines the role of loan characteristics in mortgage default probability for different mortgage lenders in the UK. The accuracy of default prediction is tested with two statistical methods, a probit model and linear discriminant analysis, using a unique dataset of defaulted commercial loan portfolios provided by sixty-six financial institutions. Both models establish that the attributes of the underlying real estate asset and the lender are significant factors in determining default probability for commercial mortgages. In addition to traditional risk factors such as loan-to-value and debt servicing coverage ratio lenders and regulators should consider loan characteristics to assess more accurately probabilities of default.
This study examined the impact of financial innovation on money demand in Nigeria, using quarterly time series for the period 2009-2019. The dependent variable was money demand, represented by broad money, while the independent variable was financial innovation represented by modern payment channels such as volume of Automated Teller Machines (ATMs) transactions, volume of Point of Sales (POS) transactions, volume of Internet banking transactions, and volume of Mobile banking transactions. The study employed the ordinary least squares (OLS) regression technique as the estimation method within the cointegration, granger causality, and error correction modeling. The result obtained showed that financial innovation has mixed impact on money demand in Nigeria during the period of analysis. For instance, financial innovation has positive impact on money demand through volume of ATM transactions in the current period, two periods lagged of volume of mobile banking transactions, current period and one period lagged of volume of internet banking transactions, and current period’s volume of Point of Sales (POS) transactions in Nigeria. On the other hand, financial innovation has negative impact on money demand through one period lagged of volume of point of sales in Nigeria. On the stability of the demand for money function, the result of the stability tests based on the CUSUM test and CUSUM of squares test showed that the demand for money function was stable during the evaluation period. The study recommended that monetary policy strategy of the central bank of Nigeria (CBN) should be fine-tuned to ensure it is well suited to deal with the challenges posed by financial innovation by way of proliferation of sophisticated payment channels.
Equity financing is one of the sources of funding available to non-bank financial institutions which is quite prevalent in developed financial markets for small or start-up firms. This study empirically determined the effect of the Equity Financing Scheme on a sustainable increase in productivity of agro-allied small businesses in Nigeria. Data for this study were elicited through the use of a questionnaire structured in a five-point likert scale. The evaluation of the relationship between the dependent and independent variables was performed using the Ordinary Least Square regression technique. The study revealed that the equity financing scheme had a positive and significant effect on the sustainable productivity of agro-allied small businesses in South-South Nigeria. The study recommended that efforts should be made to educate the small business entrepreneurs on the benefits of equity financing as a viable option towards business growth and expansion and that the government through the various intervention agencies should restructure the long-term loan policies to give access to more growth-oriented agro-allied businesses, to increase their presently low capacity to procure heavy-duty technology to increase productivity and achieve food security in Nigeria. Small business owners should take advantage of the membership of cooperative societies and as well maintain good business relationships with suppliers; this will guarantee a continuous supply of needed materials and uninterrupted operations of the business.
This study seeks to evaluate the impact of public borrowing on economic growth in Nigeria using time series data from 1980 to 2018. Specifically, the study seeks to analyze the effect of domestic debt (proxy by Federal Government Bonds-FGB) and external debt (proxy by International Monetary Fund Loan-IMFL) on Nigerian’s Gross Domestic Product (GDP). To achieve this objective, secondary data was collected from the Central Bank of Nigeria Statistical bulleting and the Debt Management Office of Nigeria. A multiple regression model involving the dependent variable (GDP) and the independent variables (FGB and IMFL) was formulated and subjected to econometric analysis. These variables were adjusted with the Jarque-bera test of normality while the correlation result was used to check the possibility of multi-collinearity among the variables. The t-test was used to answer the research questions and test the formulated hypotheses at the 5percent statistical level. Results from the analysis show that a positive relationship exists between IMF Loan and Nigeria’s gross domestic product, while a negative relationship exists between FG Bonds and Nigeria’s gross domestic product, which violates the Keynesian theory of public debt. The study concludes that both domestic and external debt significantly affect economic growth in Nigeria. Therefore, it was recommended that public borrowing should be efficiently used and contracted solely for economic reasons and not for social or political reasons as this will help to avoid accumulation of debt stock over time.
Equity investment financing is an innovative way of financing the real sector which has considerable developmental potential. The study empirically determined the effect of Equity investment financing on sustainable increase in productivity among agro-allied small businesses in South-South Nigeria. The instrument of data collection is the research questions structured in a five-point likert scale. The evaluation of the relationship between the dependent and independent variables was performed using the Ordinary Least Square regression technique. The study revealed that equity investment financing has a positive and significant effect on the sustainable productivity of businesses in Nigeria. The study recommended educating small business entrepreneurs on the benefits of equity financing as a viable option towards business growth and expansion and that the government through the various intervention agencies should restructure the long-term loan policies to give access to more growth-oriented agro-allied businesses, to increase their presently low capacity to procure heavy-duty technology to increase productivity and achieve food security in Nigeria. Small business owners should take advantage of the membership of cooperative societies and as well maintain good business relationships with suppliers; this will guarantee a continuous supply of needed materials and uninterrupted operations of the business.
This paper aims to explore the relationships of the performance of producer responsibility organizations (PROs) for waste oil, waste electrical and electronic equipment (WEEE), and end-of-life vehicles (ELV). The methodology consists in estimating the cointegration equations between the variables of lubricating oil production (SIG), electric and electronic equipment (EEE), and vehicle production (VP) using dynamic ordinary least squares (DOLS). Subsequently, elasticities are got based on estimates for Spain over the period 2007-2019 using quarterly data. The main results were that SIG and EEE were cointegrated variables. The elasticity of the SIG variable up to EEE was positive at 2, 4166. Additionally, the elasticity of the SIG variable up to VP was 2, 4050. However, SIG and VP are not cointegrated variables; subsequently, it was not a stable relationship between these variables. Results suggest it was because EPR was applied in WEEE PRO join with a deposit refund system (DRS); meanwhile, EPR in ELV PRO had been applied without subsidies to purchase cars.
In the process of R&D globalization, due to market demand and preferential policies, many multinational companies choose to invest in R&D in China. With the increase of labor costs in coastal areas and the rapid economic development of the central and western regions, multinational companies have already shifted from coastal areas to central and western regions when choosing R&D regions in China, especially in Shaanxi Province. Therefore, studying the character of R&D investment and operating performance of Multinational Corporation in Shaanxi Province has important practical significance. This article uses the data of the R&D investment of multinational corporation in the joint annual inspection of Shaanxi Province in 2018 as the sample and uses EXCEL software to conduct data analysis to gain an in-depth understanding of the character of R&D and investment of multinational corporation in Shaanxi Province, business characteristics and business performance. And it is concluded that the R&D investment of multinational corporation in Shaanxi Province has a series of characteristics such as concentration of distribution, concentration of enterprise scale, and overall good performance of operating performance.
In the context of the 4.0 revolution, technology applications, especially cloud computing will have strong impacts on all areas, including accounting systems of enterprises. Cloud computing contributes to helping the enterprise accounting apparatus become compact, help automate the input process, improve the accuracy of the input data. Besides, the issur of accounting, reporting, risk control and information security also became better, contributing to improving the effectiveness of accounting. However, besides the positive impacts, businesses also face many difficulties in deploying and applying cloud computing. However, this application requirement will become an inevitable trend contributing to improving the operational efficiency of enterprises. To promote this process requires from the State as well as businesses themselves must have awareness and appropriate decisions. Breakthroughs in information technology have dramatically changed the accounting industry and the creation of financial statements. The Internet and the technologies that use the power of the Internet are playing an important role in the management and accounting activities of businesses - who always tend to be ready to receive and use public innovations technology in collecting, storing, processing and reporting information.
In recent years, Vietnam has joined international intergration by strong export agreements of bilateral and multilateral; Vietnam’s merchandise export in 1995 was only US $5.4 billion, in 2018 Vietnam’s merchandise export increased by 45 times compared to 1995 with US $244 billion. Vietnam’s imports increased by 29 times in 2018 compared to 1995. This study is an attempt to test a method of estimating the influence of exports on several Supply-sidefactors such as production value, value added and imports through the expansion of the standard system W. Leontief I.O and Miyazawa-style economic-demographic relations. This study also tries to make an experiment in the “Leontief Paradox”.The result is that Vietnam’s export value spread to production and imports but spread low to added value, especially in the processing industry group’s fabrication. The study is based on the non-competitive I.O table in 2012 and 2018 with 16 sectors.
The profitability of commercial banks is influenced by a number of internal and external factors. This paper attempts to identify the internal factors which significantly influence the profitability of commercial banks in Bangladesh. In this study, profitability is measured by ROA and ROE which may be significantly influenced by the internal factors such as IRS, NIM, CAR, CR, DG, LD, CTI and SIZE of the bank. Data are collected from published annual reports during 2014--2018 of 23 commercial banks. Using simple regression model, it is found that CR has significant effect on the profitability and CAR has significant influence on ROA only. In addition to this, DG has significant effects on PCBs’ profitability (ROE only) where as IRS and CTI have significant influence on profitability (ROA only) of ICBs. Further, none of these variables have significant effects on the profitability of SCBs but CAR and CR are correlated with profitability (ROA only) and the causes may be the nature of services provided by SCBs to its clients. The internal policy makers should manage the influential internal factors of the banks in order to increase their profitability so that they can meet stakeholders’ expectations.
Using a series of econometric techniques, the study analysed interaction between monetary policy and private sector credit in Ghana. This study made use of monthly dataset spanning January 1999 to December 2019 of credit to the private sector (PSC) and broad money supply (M2). The results reveal that there exists cointegration, a long run stationary relation between monetary policy and private sector credit. This implies, increases in credit should prompt long-term increases in monetary policy. It is not surprising that growth in the private sector might have a stronger effect on monetary policy. The Error Correction Test is statistically significant and that all the variables demonstrate similar adjustment speeds. This implies that in the short run, both money supply and credit are somewhat equally responsive to their last period’s equilibrium error. There is unidirectional causation from private sector credit to monetary policy. It can be said that, there is an interaction between money supply and private sector credit. Thus, credit to private sector holds great potential in promoting economic growth. It can be recommended to the government to increase the credit flow to the private sector because of its strategic importance in creating and generating growth of the economy.
This paper investigates if forecasting models based on Machine Learning (ML) Algorithms are capable to predict intraday prices in the small, frontier stock market of Romania. The results show that this is indeed the case. Moreover, the prediction accuracy of the various models improves as the forecasting horizon increases. Overall, ML forecasting models are superior to the passive buy and hold strategy, as well as to a naïve strategy that always predicts the last known price action will continue. However, we also show that this superior predictive ability cannot be converted into “abnormal”, economically significant profits after considering transaction costs. This implies that intraday stock prices incorporate information within the accepted bounds of weak-form market efficiency, and cannot be “timed” even by sophisticated investors equipped with state of the art ML prediction models.
Applying the Arrow-Debreu-Mundell-Fleming model as an economic standard model, with combining axiological framework and epistemological model, it is proposed to analyze economic policies with using a synthetic model, where interest, exchange and tax rates are integrated together. Except normal monetary and fiscal policies mainly via interest and tax rates, there are feasible ways to utilize modified strategies via exchange and tax rates. When ones need to simulate national local market, ones can raise the exchange rate. Otherwise, when ones need to promote international global trade, ones may lower the exchange rate. It is found that tax reduction is good policy when tax rate is higher than normal and that tax increase is good social policy when tax rate is lower than normal, during economic depression. Also it is revealed that tax reduction is good social policy when tax rate is lower than normal, and that tax increase is good policy when tax rate is higher than normal, during economic overheat. While economic system seeks efficiency and social system pursues equality, common interest modifications with elastic exchange and tax rates could be applied for balancing efficiency and equality.
In recent times, agricultural sector has returned to the forefront of development issues in Nigeria given its contribution to employment creation, sustainable food supply and provision of raw materials to other sectors of the economy. In lieu of that, this study examines the impact of agriculture on the economic growth in Nigeria using annual time series data covering the sample period of 1981 to 2018. To analyse the data collected, Autoregression Distributed Lag (ARDL) model through the bounds testing framework is employed to measure the presence of cointegrating relations between real GDP, agricultural productivity, labour force, and agricultural export. Results show the presence of both short-run and long-run relationship among the variables, and that agriculture has a positive and significant impact on economic growth in Nigeria. These findings inform the Nigerian government on the need to expedite labour force (human capital) and agricultural export (non-oil) development with the view to achieving sustainable growth and development. In addition, developing skills and competencies of labour force through capacity building in the agricultural sector will encourage research and development thereby increase the export size, hence essential for long-term growth.
The article illustrates the results of the economic development of the first fifteen years of the XXI century under the conditions of unprecedented economic freedom, globalization and the appearance of new informational sectors up to and including the first attempts at revising liberalism. The analysis of statistical data demonstrates an obvious increase in the percentage of well-off people in many countries as well as the increased economic capabilities of small, medium and large businesses, whose assets are distributed among an ever-increasing number of owners. This provides the impetus to review our collective approach to liberalization and globalization, as well as to view its unexpected strong sides that make human progress possible.
This paper investigates the relationship between working capital management and financial performance of Pharmaceuticals and Textile firms listed at the Dhaka Securities Exchange in Bangladesh. The data analysis was carried on ten Pharmaceuticals and Textile firms for a period of 2013 to 2017. Secondary Data was analyzed by applying Descriptive Statistics, Regression and Correlation analysis to findthe relationship of current ratio, inventory conversion period and average payment period with Return on Asset. The findings indicate that the Pharmaceuticals and Textile firms’ performance is influenced by the variables relating to working capital. There is a positive relationship between profitability and current ratioand Inventory Turnover period shows a negative relationship with profitability but Average payment period shows insignificant impact on profitability. The study concludes that there exists a relationship between working capital managementand financial performance of Pharmaceuticals and Textile firms in Bangladesh. The study recommends that for the Pharmaceuticals and Textile firms to remain profitable, they should employ working capital management practice that will help in making decisions about investment mix and policy, matching investment to objective, asset allocation for institution and balancing risk against profitability.
Organizational behaviour involves the design of work as well as the psychological, emotional and interpersonal behavioural dynamics that influence organizational performance. Management as a discipline concerned with the study of overseeing activities and supervising people to perform specific tasks is crucial in organizational behaviour and corporate effectiveness. Management emphasizes the design, implementation and arrangement of various administrative and organizational systems for corporate effectiveness. While the individuals, and groups bring their skills, knowledge, values, motives, and attitudes into the organization, and thereby influencing it, the organization, on the other hand, modifies or restructures the individuals and groups through its structure, culture, policies, politics, power, and procedures, and the roles expected to be played by the people in the organization. This study conducted through the exploratory research design involved 125 participants, and result showed strong positive relationship between the variables of interest. The study was never exhaustive due to limitations in terms of time and current relevant literature, therefore, further study could examine the relationship between personality characteristics and performance in the public sector, where productivity is not outstanding, when compared with the private sector. Based on the result of this investigation it was recommended that organizations should provide emotional intelligence programmes for their membership as an important pattern of increasing co-operative behaviours and corporate effectiveness.
This paper scrutinizes Determinants of Capital Structure: A study on some selected corporate firms in Bangladesh. We have taken 10 out of 37 listed companies of DSE dividing into two sectors i.e. Pharmaceuticals and chemicals and Tannery sector, five years data from 2013 to 2017 has been collected from respective annual reports. Total number of observations was 50. There are different factors that affect a firm's capital structure decision. We use leverage (D/E ratio) as dependent variable and independent variables are profitability, tangibility, tax, size, growth, non-debt tax shield (NDTS) and financial costs. By using Descriptive Statistical Analysis, Correlation Analysis and Regression Analysis tools we find that Tangibility, size, NDTS, and financial costs are positively related with leverage and Profitability, tax, and growth are negatively related with leverage. In our analysis we see profitability, tangibility of asset, growth and non-debt tax shield have significant association. So when we take capital structure decision of the above firms we should consider profitability, tangibility of asset, growth and non-debt tax shield because other independent variables are insignificant in the context of Bangladesh economy.
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Turin Startup Ecosystem 2024 - Ricerca sulle Startup e il Sistema dell'Innov...Quotidiano Piemontese
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Financial Assets: Debit vs Equity Securities.pptxWrito-Finance
financial assets represent claim for future benefit or cash. Financial assets are formed by establishing contracts between participants. These financial assets are used for collection of huge amounts of money for business purposes.
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Debt Securities are Also known as fixed-income securities or instruments. The type of assets is formed by establishing contracts between investor and issuer of the asset.
• The first type of Debit securities is BONDS. Bonds are issued by corporations and government (both local and national government).
• The second important type of Debit security is NOTES. Apart from similarities associated with notes and bonds, notes have shorter term maturity.
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Preferred Stock: Preferred stocks are sometime referred to as hybrid securities, because it contains elements of both debit security and equity security. Preferred stock confers ownership rights to security holder that is why it is equity instrument
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Concluding remarks
Both are employed in business. Businesses are often established through debit securities, then what is the need for equity securities. Companies have to cover multiple expenses and expansion of business. They can also use equity instruments for repayment of debits. So, there are multiple uses for securities. As an investor, you need tools for analysis. Investment decisions are made by carefully analyzing the market. For better analysis of the stock market, investors often employ financial analysis of companies.
how to sell pi coins in South Korea profitably.DOT TECH
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how to sell pi coins in Hungary (simple guide)DOT TECH
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2. International Journal of Economics and Financial Research
215
statistically meaningful but negative impact on growth. Annual data on workers‘ remittances, per capita GDP, gross
capital formation (gross domestic investment), and net private capital flows are used for this paper.
IMF (2005) studied over 101 developing countries and found no link between remittances and other variables.
In two different studies Faini (2002) found positive impact of remittance on growth. Faini (2002) states that
remittances help to overcome imperfections in the capital.
4. Theoretical Study
4.1. Trends of Migration from Bangladesh
Bangladesh has two main types of migrants. The first includes immigrants and permanent residents to
industrialized countries—a process that began in the 1950s with the United Kingdom and has gained momentum in
recent years with the increase in the size of the Bangladeshi diasporas in other countries. This cluster of people
consists of who have got foreign citizenship and are professionals and semiprofessionals. The second type of migrant
includes short-term migrants to the Middle East and Southeast Asian countries—a process that began in the wake of
the 1973 oil price hike and the emergence of Middle East countries as affluent economies. These migrants, who
usually return after completing their contracts, are mainly nonprofessionals. Due to the lack of records, information
on each group is limited. According to the Bureau of Manpower Employment and Training (BMET), in 2018 a total
of 734,181 Bangladeshi workers moved to different countries of the world and the amount was about 27% more than
the previous year. In 2017, the total number of workers who went abroad from Bangladesh stood at 1,008,525.
Bureau of Manpower, Employment and Training (BMET) has classified temporary migrant population into five
categories. These are professional, skilled, semi-skilled, and less-skilled and others. Doctors, engineers, nurses and
teachers are considered as professionals. Industrial workers are treated as skilled; while tailor, mason etc. as semi-
skilled workers; housemaid, cleaner, laborers are classified as less-skilled. The following figure shows the category-
wise overseas employment in 2019.
Figure-1. Category-wise Overseas Employment in 2019
In 2019, 44 percent workers were in skilled category, 48 percent were in semiskilled and less-skilled category,
other constitutes 8% and number of professional was almost 0% of the total overseas employment. The manpower
export increased gradually after 1990 and the number of skilled workers also increased but it was not that significant
proportionately to that of semiskilled and less-skilled workers. Increase in the flow of semi-skilled and unskilled
workers in proportion to professionals indicates two things. Firstly, Bangladesh hardly took into account that in
order to advance and protect its international market of professional and skilled workers it needed to invest in
development of its human resources in accordance with the market need. Failing to do so has resulted in losing its
traditional market to other competing countries and also to newly emerging ones. Secondly, according to migration
experts, during the early years of the oil price hike, the Middle Eastern countries mostly needed professional and
skilled persons for their rapid infrastructure development. The 1990s saw the gradual slowing down of the pace of
infrastructure development. This does not mean that there has been an overall reduction in the need for labor. Rather,
these economies now need more semi-skilled and unskilled labor for maintenance purpose and domestic work. Both
the arguments hold some ground.
4.2. Remittance and Economic Growth
In Bangladesh, the greater inflow of remittances helped to sustain macroeconomic stability by improving the
country‘s current account position, foreign currency reserves, and external debt servicing capability. From a
‗bottomless basket‘ in 1971, Bangladesh was become a lower-middle income country in 2017. International
migration and the remittances sent by the Bangladeshi labour migrants have played a critical role in this
breakthrough. Migrated workers and remittance flow helped in alleviating poverty in the country. Bangladesh
requires huge amount of foreign currency reserve to import different commodities and finance external debt. In
3. International Journal of Economics and Financial Research
216
FY2017, the ratio of imports to GDP was 17.61% and exports to GDP 15.73%, resulting in trade deficits. But
because of the strong inflow of remittances, the current account balance showed a surplus in 2017. The following
figure illustrates the pattern of remittance flow and GDP.
Figure-2. Trend of remittance and GDP
5. Methodology
I first test the stationarity properties of the variables under consideration, then test for cointegration among the
variables. Short-run relation will be identified using error correction mechanism. At last, I will test Granger
Causality among the variables in a VECM framework.
The empirical analysis of this study has been conducted with a sample of annual data covering remittance and
growth of Bangladesh from 1980 to 2018. The data utilized for this study are obtained from UN statistical division,
Monthly Economic Trend of Bangladesh Bank and Bureau of Manpower, Employment and Training (BMET).
5.1. Stationarity Test
Practically most econometric time series data shows trends and are non-stationary (Phillips, Perron, 1988).
Therefore, as first step in empirical analysis with any time series is to test for the presence of unit roots in order to
remove the problem of spurious regression. In this stage, it is needed to explore the order of each variable to
establish whether it contains unit roots and how many times it needs to be differenced to draw a stationary series.
We used unit root test to check whether our variables (Remittance- REM and Gross Domestic Product -GDP)
are non-stationary. Both the variables are used in logarithmic form ( GDP
ln , and REM
ln ). To examine whether the
data series are stationary, many types of tests can be performed like the Dickey - Fuller Test, the Augmented Dickey
– Fuller (ADF) Test, and Phillips – Perron Test.
This ADF test statistic checks the null hypotheses that the time series has a unit root, under the alternative
hypotheses of stationary time series. If the null hypothesis is rejected, then the series is stationary and no
differencing in the series is necessary to induce stationary. The result is also cross-checked by Phillips – Perron (PP)
Test. The results of these tests are presented in the Table 1 and Table 2.
Table-1. Unit Root Test (Augmented Dickey-Fuller)
Table-2. Unit Root Test (Phillips-Perron)
Note: Null hypothesis rejected when the p-value lower than 0.05.
The results reveals that the time series GDP
ln and REM
ln are non-stationary at their levels, while first
difference made them stationary. Both the ADF and the PP test provide the same result.
Level p-value First Difference p-value Critical Values
GDP
ln 2.4372 1.0000 -4.6612 0.0006 -3.62 (1%)
-2.94 (5%)
-2.61(10%)
REM
ln -0.3078 0.9144 -4.9024 0.0003
Level p-value First Difference p-value Critical Values
GDP
ln 3.0612 1.0000 -4.6612 0.0006 -3.62 (1%)
-2.94 (5%)
-2.61 (10%)
REM
ln -0.3253 0.9116 -4.8156 0.0004
4. International Journal of Economics and Financial Research
217
5.2. Cointegration Test
The concept of cointegration was introduced by Granger (1981) and the statistical analysis of cointegrated
process was organized by Engle and Granger (1987). Cointegration means that despite being individually non-
stationary a linear combination of two or more time series can be stationary. When a linear combination of non-
stationary variables is stationary, the variables are said to be cointegrated and the vector that defines the stationary
linear combination is called a cointegrating vector. A necessary condition for cointegration is that the data series for
each variable involved exhibit similar statistical properties, that is, to be integrated to the same order with linear
combination of the integrated series.
There are two methods which are widely used for testing cointegration:
1. Engle-Granger Residual based ADF method.
2. Johansen Full Information Maximum Likelihood Method (Johansen, 1988; Johansen and Juselius, 1990).
In this study for finding cointegration we test the Johansen Full Information Maximum Likelihood Method.
Table-3. Unrestricted Cointegration Rank Test (Trace)
Hypothesized No. of CE(s) Eigenvalue Trace Statistic 0.05 Critical Value Prob.**
None * 0.466098 23.77306 15.49471 0.0023
At most 1 0.014861 0.553994 3.841466 0.4567
Trace test indicates 1 cointegrating equation(s) at the 0.05 level
* denotes rejection of the hypothesis at the 0.05 level
** MacKinnon-Haug-Michelis (1999) p-values
Table-4. Unrestricted Cointegration Rank Test (Maximum Eigenvalue)
Hypothesized No. of CE(s) Eigenvalue Max-Eigen
Statistic
0.05 Critical Value Prob.**
None * 0.466098 23.21906 14.26460 0.0015
At most 1 0.014861 0.553994 3.841466 0.4567
Max-eigenvalue test indicates 1 cointegrating equation(s) at the 0.05 level
* denotes rejection of the hypothesis at the 0.05 level
**MacKinnon-Haug-Michelis (1999) p-values
The Max-Eigen value and Trace statistic test reject the hypothesis of no cointegration and indicate that there is
one cointegrating equation at the 5% significance level. So there is a long run relationship between gross domestic
product and remittance in Bangladesh.
5.3. Error Correction Mechanism
From the cointegration test we found that GDP
ln and REM
ln are cointegrated; that is, there is a long run
relationship between the two. Of course, in the short run there may be disequilibrium. There for we can treat the
error term
t
u as the ―equilibrium error‖. And we can use this error term to tie the short run behavior of GDP
ln to
its long run value. If two variables are cointegrated, then the relationship between the two can be expressed as error
correction mechanism (Granger representation theorem). So, when long run equipoise relation between variables
may be found through cointegration analysis, but the regulating speed is unable to be obtained when these variables
depart from their common random trend. This problem may be solved using error correction mechanism. The error
correction model including correction term should be made based on cointegration test so as to study the short run
dynamic regulating relation between gross domestic product and remittance in Bangladesh.
For this study the error correction model is estimated as follows:
t
GDP
ln
= 0.302 + 0.08 t
REM
ln
- 0.54 1
t
u (1)
R-squared = 0.806; Durbin-Watson stat = 2.008;
The result of the Error Correction Model estimation above revealed that the coefficient of remittance is
significant at 5% level. A 1 percentage increase in the remittance raises economic growth by 0.08 percentages. The
coefficient of error correction term was rightly signed (i.e. negative) with the economy recovery rate of 54 percent
and significant at 5% level. The Adjusted R-squared indicated that 80 percent variation in Bangladesh‟s economic
growth is explained by the explanatory variable. In this model value of R2
is 0.806 which is less than the Durbin-
Watson statistic (d=2.008) indicating the model is significant.
5.4. Granger Causality Test
There is a cointegration relation between remittance and gross domestic product or these two variables have
long run equilibrium relation. The next step is to investigate the short-run dynamics via the analysis of Granger
Causality tests. Granger causality test of these two variables is needed to make sure whether this long run
equilibrium relation is causality, or whether remittance promotes economic growth and economic growth drives
remittance or both exist.
F statistics and its corresponding probability used for rejecting of accepting the null hypothesis. The present
study posses two null hypothesis:
a) REM
ln does not Granger Cause GDP
ln
b) GDP
ln does not Granger Cause REM
ln
5. International Journal of Economics and Financial Research
218
The results of the Granger causality are shown in the following Table 5.
Table-5. Results of Granger Causality
Null Hypothesis: Lags F-Statistic Probability
LN REM does not Granger Cause LN GDP 2 5.26493 0.010
LN GDP does not Granger Cause LN REM 2 0.44794 0.642
The former hypothesis ― REM
ln does not Granger Cause GDP
ln ‖ is rejected. These results suggest that the
direction of causality is from remittance to GDP growth. On the other hand, there is no ‗reverse causation‘ form
GDP growth to remittance, since the F-statistic is statistically insignificant and the probability is larger than .05. So it
can be seen from the result that one way causality exist from remittance to economic growth in Bangladesh during
the period of 1980 to 2018.
6. Conclusions
We try to investigate the causal nexus between remittance and GDP growth for Bangladesh using annual data
from 1980 to 2018. This study uses time series econometrics tools to find the relationship. The growth of remittance
has become a crucial issue in context of economic growth.
Time series analysis indicates remittance cause GDP growth both in the short run and in the long run. Using
Johansen‘s approach to cointegration, our findings suggest that GDP and remittance are cointegrated for Bangladesh,
implying a long run relationship between the variables. However, causal relationship between them is unidirectional,
as can be seen from the result that one way causality existing from remittance to economic growth in Bangladesh
during the period of 1980 to 2018.
Nowadays, though remittance transfer process has improved, for efficient transmission barriers should be
removed to promote the use of official channels.
1. Access in originating countries: better access to the Bangladeshi network of banks and exchange houses
needs to be provided in certain areas in the Middle East, Greece, Italy, Republic of Korea or Spain;
2. Infrastructure and technology challenges: widespread use of new technology must replace manual
processing of remittances to prevent delay in transmission and disbursement of funds;
3. Educational issues: financial literacy needs to be enhanced to help remitters explore the formal channel;
information material in the form of booklets, brochures, and leaflets needs to be made available to
Bangladeshi migrants, and briefing arrangements need to be introduced by banks, the post office, or money
transfer operators about remittance methods and investment options;
4. Governance: governance for remittances handled by commercial banks and the post office needs to be
improved to eliminate fraud and delays in remittances by streamlining the administrative mechanisms to
address such issues; and
5. Access in receiving country: more branches of commercial banks, particularly private banks, need to be
opened in remote areas in Bangladesh. In order to handle remittances efficiently, cooperation is needed
between private banks and state-owned commercial banks.
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