|
on Central and Western Asia |
| By: | Sudip Ranjan Basu (IUHEI, The Graduate Institute of International Studies, Geneva) |
| Abstract: | The paper provides a welfare comparison between China and India. China outperforms India as a whole, but the gap is evidently being reduced. The preliminary results show that India has more regional variations. After controlling for state effects, however, economic development displays a pronounced effect on the improvement of welfare indicators in India, whereas in China, most variations are correlated with income differences across provinces. Another interesting finding is that over time, the income effect on social indicators is diminishing in China, calling for more alternative approaches. Our analysis strongly suggests that in India, state-level social policies play a key role. |
| JEL: | C43 O18 |
| Date: | 2007–02–06 |
| URL: | http://d.repec.org/n?u=RePEc:gii:giihei:heiwp08-2007&r=cwa |
| By: | Erdogdu, Oya |
| Abstract: | The permanent income hypothesis states a strong relationship between household consumption and lifetime income. Based on this argument, this study, following previous studies in that respect, analyzes the possible impact of expectations in this relationship in case of uncertainty in the model. The empirical analyses for Turkey could not find a statistically significant relationship between household consumption, income and confidence index which is used as a proxy for income expectations. However, besides, expectations on purchasing power and employmet opportunities having statistically significant effect on household consumption expenditures, they do decrease the percentage of unexplained variance. |
| Keywords: | Consumption; expectations; confidence index |
| JEL: | E21 |
| Date: | 2006–11 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:1763&r=cwa |
| By: | Kibritçioğlu, Aykut |
| Abstract: | This paper is concerned with the causes, timing and effects of banking sector restructuring and financial crisis in Turkey. The main focus of the study, however, is on labour market implications of the banking crisis and banking reform in recent years. The paper is organised as follows. Section 2 presents a brief summary of the macroeconomic background to the latest banking sector crisis in Turkey. In section 3, the efforts of recent Turkish Governments towards restructuring and rehabilitation of the banking sector are considered. Then, following a statistical review of the main features of the Turkish banking sector, section 4 focuses on the labour market problems that can be linked to the Government's restructuring and rehabilitation programme in banking. Section 5 draws some lessons from this restructuring programme. Finally, section 6 concludes with some remarks on future prospects in the banking sector. |
| Keywords: | restructuring; labour market; unemployment; banking sector; banking crisis; Turkey |
| JEL: | G34 G21 J21 E44 |
| Date: | 2006–05–10 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:2457&r=cwa |
| By: | Sinha, Dipendra; Sinha, Tapen |
| Abstract: | This paper looks at the relationship between per capita saving and per capita GDP for India using the Toda and Yamamoto tests of Granger causality. Data are for 1950-2004. We distinguish between three types of saving. These are household saving, corporate saving and public saving. The results show that there is no causality between per capita GDP and per capita household saving/per capita corporate saving in either direction. However, there is bi-directional causality between per capita household saving and per capita corporate saving. |
| Keywords: | Toda-Yamamoto; causality |
| JEL: | E21 C22 |
| Date: | 2007–01–04 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:2564&r=cwa |
| By: | Suguta Marjit; Saibal Kar |
| Abstract: | Studies on formal-informal interactions in the labor markets of developing countries claim that economic reform increases the level of informal activity. Although the extent of such claims differs across countries, it is generally believed that reform is likely to depress informal wage by contracting the formal sector and driving labor onto its informal counterpart. However, available empirical evidence suggests that real wage and real fixed assets in the informal manufacturing sector have risen significantly across most states in post-liberalization India. Using this as a benchmark, we formalize a general equilibrium model of inter-sectoral capital mobility and informal wage to argue that, with limited degree of capital mobility, trade reform reduces the informal wage. This is the convetional wisdom usually obtained under a partial equilibrium framework. However, with increased mobility of capital this result is reversed. We offer detailed emmpirical evidence on the movements of real wage in the informal sector in India and how this affects poverty at the state level. The basic result on income mobility is corroborated by a primary survey in the province of West Bengal, for which we offer descriptive analysis on household income levels in the province's informal manufacturing and service sectors. |
| Keywords: | Informal Wage, Capital Mobility, Trade Reform, Poverty, India |
| JEL: | F13 F16 O17 J21 J31 |
| Date: | 2007 |
| URL: | http://d.repec.org/n?u=RePEc:lvl:mpiacr:2007-09&r=cwa |
| By: | Sonja Fagernäs |
| Abstract: | This paper investigates the effects of corporate governance factors and family ties on the pay of managing directors in a sample of Indian stock listed companies. It uses a unique seven-year firm level panel dataset and controls for firm performance and both CEO and firm specific fixed effects. The hypothesis is that corporate governance, ownership structures and market pressure shape the power relations between the board and managers, and affect the level and structure of CEO pay. The evidence for India supports these hypotheses. Managing directors, who are related to the founding family, or controlling group, or any of the members on the board of directors, are paid more. This holds for total pay and both for the less variable component and the performance-related component of pay. In contrast, the presence of outside representatives on the board - non-executive directors or nominees of creditors or institutional investors - is found to have a disciplinary effect. The presence of nominees lowers the level of pay and that of non-executives ties pay more to firm performance. A further timely finding is that the staged introduction of a recent mandatory corporate governance code, aiming to improve governance and pay disclosure in listed companies, has raised the tendency of firms to tie pay explicitly to firm performance. Overall, the practice of tying pay explicitly to performance has become more common over time. |
| Keywords: | Executive pay, Corporate Governance, Family firms, Corporate Law, India |
| JEL: | G30 J33 K22 M52 |
| Date: | 2006–12 |
| URL: | http://d.repec.org/n?u=RePEc:cbr:cbrwps:wp335&r=cwa |
| By: | Cifter, Atilla; Ozun, Alper |
| Abstract: | This study aims to test the money base, money supply, credit capacity, industrial production index, interest rates, inflation and real exchange rate data of Turkey during the years 1997 – 2006 through the monetary transmission mechanism and passive money hypothesis using the vector error correction model based causality test. Empirical findings show that the passive money supply hypothesis of the new Keynesian economy is supported in part by accommodationalist views and they do not confirm to the view points of structuralist and liquidity preference theorist. However, according to the monetary transmission mechanism it has been established that long-term money supply only affects general price levels and production is influenced by interest rates in the new economy period for Turkish economy. Empirical findings show that in the new economy period interest transmission mechanism are brought to the fore. |
| Keywords: | Monetary transmission mechanism; money supply endogeneity; Credit; New Keynesian Economy |
| JEL: | E4 E52 E58 C32 |
| Date: | 2007–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:2486&r=cwa |
| By: | Ramani K.V.; Mavalankar Dileep; Govil Dipti |
| Abstract: | Blood is a vital healthcare resource routinely used in a broad range of hospital procedures. It is also a potential vector for harmful, and sometimes fatal, infectious diseases such as HIV, HBV, and HCV. Morbidity and mortality resulting from the transfusion of infected blood have far-reaching consequences. The economic cost of a failure to control the transmission of infection is visible in countries with a high prevalence of HIV. Shortfalls in blood supply have a particular impact on women with pregnancy complications, trauma victims and children with severe life-threatening anaemia. Ensuring a safe, source and ethical supply of blood and blood products and rational clinical use of blood are important public health responsibilities of every national government. Blood transfusion services in India rely on very fragmented mix of competing independent and hospital based blood banks of different levels of sophistication, serving different types of hospitals and patients. Voluntary and non-remunerated blood is in short supply. The SACS ensure only the availability of safe blood in blood banks. Clinical use of blood is not monitored, and the use of blood components is very low. Managing blood transfusion services involves donor management, blood collection, testing, processing, storing, issue of safe blood and blood products when clinically needed, and staff training. Maharashtra Government, by setting up its State Blood Transfusion Council as an independent unit under the Department of Health, has set up an excellent example to address the above managerial issues in meeting the transfusion requirements than any fragmented system. We strongly recommend the Maharashtra model to all other states and union territories in India. |
| Keywords: | Management, Blood, Blood components, Transfusion |
| Date: | 2007–03–31 |
| URL: | http://d.repec.org/n?u=RePEc:iim:iimawp:2007-03-09&r=cwa |
| By: | Willmann, Gerald; Silva, Peri; Olarreaga, Marcelo; Facchini, Giovanni |
| Abstract: | The authors examine the trade policy response of Latin American governments to the rapid growth of China and India in world markets. To explain higher protection in sectors where a large share is imported from these countries, they extend the " protection for sale " model to allow for different degrees of substitutability between domestically produced and imported varieties. The extension suggests that higher levels of protection toward Chinese goods can be explained by high substitutability between domestically produced goods and Chinese goods, whereas lower levels of protection toward goods imported from India can be explained by low substitutability with domestically produced goods. The data support the extension to the " protection for sale " model, which performs better than the original specification in terms of explaining Latin America ' s structure of protection. |
| Keywords: | Economic Theory & Research,Markets and Market Access,Free Trade,Globalization and Financial Integration,International Trade and Trade Rules |
| Date: | 2007–04–01 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:4188&r=cwa |
| By: | Cifter, Atilla; Ozun, Alper |
| Abstract: | The purpose of this study is to test predictive performance of Asymmetric Normal Mixture Garch (NMAGARCH) and other Garch models based on Kupiec and Christoffersen tests for Turkish equity market. The empirical results show that the NMAGARCH perform better based on %99 CI out-of-sample forecasting Christoffersen test where Garch with normal and student-t distribution perform better based on %95 Cl out-of-sample forecasting Christoffersen test and Kupiec test. These results show that none of the model including NMAGARCH outperforms other models in all cases as trading position or confidence intervals and these results shows that volatility model should be chosen according to confidence interval and trading positions. Besides, NMAGARCH increases predictive performance for higher confidence internal as Basel requires. |
| Keywords: | Garch; Asymmetric Normal Mixture Garch; Kupiec Test; Christoffersen Test; Emerging markets |
| JEL: | G00 C52 C32 |
| Date: | 2007–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:2489&r=cwa |
| By: | erdogdu, oya |
| Abstract: | Energy being one significant factor of production, high rises of oil prices and Russia’s strategy of controlling natural gas resources and energy routes makes the policy of using domestic energy resources and developing new technologies to use these resources very popular. Today, USA, Europe and even China is taking serious actions on using their own energy resources rather than importing. Contrary to this strategy Turkey is getting more dependent on imported natural gas, rather than using own resources of energy. This study analyses the consequences of this policy. VAR methodology and Granger causality analyses performed to investigate the relations between imported energy, investment and employment. The results indicate serious negative impact of energy imports on private sector investment employment. |
| Keywords: | Energy consumption; Granger causality; VAR |
| JEL: | Q43 C32 |
| Date: | 2007–01 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:2521&r=cwa |
| By: | Yayla, Hilmi Erdogan |
| Abstract: | This study examines the evolution of Turkish accounting standards to ascertain the extent of differences in Turkiye’s accounting practices among the different governmental Standard setter’s regulations during the twentieth century. The research results show that the accounting standards had set by the public corporates own self as parallel to economic policies of Turkish Ministry of Finance and money policies of Central Bank of the Republic of Turkiye before the establishment of Turkish Accounting and Auditing Standards Board in 1994. On the other hand in the last two decades of twentieth century the specific standards had set by the Ministry of Finance for tax reporting companies and Capital Markets Board of Turkiye for financial reporting companies have the significant differences. |
| Keywords: | Standardization; Accounting in Turkiye. |
| JEL: | M41 |
| Date: | 2006 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:2556&r=cwa |
| By: | Michele Ca’ Zorzi (European Central Bank, Kaiserstrasse 29, 60311 Frankfurt am Main, Germany.); Elke Hahn (European Central Bank, Kaiserstrasse 29, 60311 Frankfurt am Main, Germany.); Marcelo Sánchez (European Central Bank, Kaiserstrasse 29, 60311 Frankfurt am Main, Germany.) |
| Abstract: | This paper examines the degree of Exchange Rate Pass-Through (ERPT) to prices in 12 emerging markets in Asia, Latin America, and Central and Eastern Europe. Our results, based on three alternative vector autoregressive models, partly overturn the conventional wisdom that ERPT into both import and consumer prices is always higher in “emerging” than in “developed” countries. For emerging markets with only one digit inflation (most notably the Asian countries), passthrough to import and consumer prices is found to be low and not very dissimilar from the levels of developed economies. The paper also finds robust evidence for a positive relationship between the degree of the ERPT and inflation, in line with Taylor’s hypothesis once two outlier countries (Argentina and Turkey) are excluded from the analysis. Finally, the presence of a positive link between import openness and ERPT, while plausible theoretically, finds only weak empirical support. JEL Classification: C32, E31. |
| Keywords: | Exchange Rate Pass-Through, Emerging Markets. |
| Date: | 2007–03 |
| URL: | http://d.repec.org/n?u=RePEc:ecb:ecbwps:20070739&r=cwa |
| By: | Cifter, Atilla; Ozun, Alper |
| Abstract: | This paper examines the impacts of changes in interest rates on stock returns by using wavelet analysis with Granger causality test. Financial time series in non-coherent markets should be analyzed by advanced methods capturing complexity of the markets and non-linearities in stock returns. As a semi-parametric method, wavelets analysis might be superior to detect the chaotic patterns in the non-coherent markets. By using daily closing values of the ISE 100 Index and compounded interest rates, it is proven that and starting with 9 days time-scale effect interest rate is granger cause of ISE 100 index and the effects of interest rates on stock return increases with higher time-scales. This evidence shows that bond market has significant long-term effect on stock market for Turkey and traders should consider long-term money markets changes as well as short-term changes. |
| Keywords: | Interest rates; Emerging markets; Wavelets; Stock returns; Multi-scale Granger causality |
| JEL: | C45 C14 |
| Date: | 2007–03–01 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:2485&r=cwa |
| By: | Mathieu Audet; Dorothée Boccanfuso; Paul Makdissi |
| Abstract: | Throughout this article, we utilize consumption dominance curves, a tool developed by Makdissi and Wodon (2002) to analyze the impacts on poverty brought on by changes in the food subsidy system in Egypt. The Egypt Integrated Household Survey (EIHS) of 1997 allows us to conclude that changes brought to these subsidies have not always worked towards alleviating poverty. |
| Keywords: | Subsidy, Marginal Tax Reforms, Egypt |
| JEL: | D12 D63 I21 I32 |
| Date: | 2007 |
| URL: | http://d.repec.org/n?u=RePEc:lvl:lacicr:0707&r=cwa |
| By: | Guray Kucukkocaoglu (Baskent University) |
| Abstract: | This paper addresses the question of what kind of selling and underwriting procedure might be preferred for controlling the amount and volatility of underpricing in the Istanbul Stock Exchange (ISE). Using 1993-2005 firm and issue data, we compare the three substantially different IPO methods available in the ISE. One is very similar to the book building mechanism used in the U.S., another is the fixed price offer, and the third one is the sale through the stock exchange method. The empirical analysis reveals significant first day underpricing of 7.01% in fixed price offer, 11.47% in book building mechanism, and 15.68% in sale through the stock exchange method. Finally, we also show that fixed price offers can better control the impact of market information on underpricing than sale through the stock exchange method |
| Keywords: | ipo, book building, fixed price offer, istanbul stock exchange, emerging market |
| JEL: | G15 |
| Date: | 2007–02–02 |
| URL: | http://d.repec.org/n?u=RePEc:mmf:mmfc06:8&r=cwa |
| By: | Chambers, Nurgul; Cifter, Atilla |
| Abstract: | The purpose of this paper is to investigate the productivity of Turkish Banks according to the effect of scale in the Post-Crises Period. The data used in this study covers the period from 2002:1 to 2004:3. We applied Data Envelopment Analysis (DEA), which is a non-parametric linear programming-based technique for measuring relative performance of decision-making units (DMUs). We calculated DEA as constant & variable return-to-scale based on output oriented Malmquist Index. Although the scale effect can be measured with DEA scale efficiency measurement, we used scale indicators as input variables in order to find out not only scale efficiency but also scale affect directly. We applied DEA by using financial ratios (Athanassopoulos and Ballantine, 1995; Yeh, 1996) and branch & personel number indicators. This study uses five input variables as i) branch numbers, ii) personnel number per branch, iii) share in total assets, iv) share in total loans, v) share in total deposits; and five output variables as i) net profit-losses/total assets (ROA), ii) net profit-losses/total shareholders equity (ROE), iii) net interest income/total assets, iv) net interest income/ total operating income, and v) noninterest income/total assets. We find that difference in efficiency is mainly from technical efficiency rather than scale efficiency in the post-crises period. The other finding reveals that efficiency approximate between selected banks and supporting that advantage of scale economies can be lost in Turkish banking. Overall, the results confirm that Turkish banking has U shaped Scale Efficiency on selected profitability ratios. The application of this paper based on other financial ratios with decreasing and increasing return-to-scale DEA is left to future research. |
| Keywords: | Turkish Banks; Return to Scale; Scale Efficiency; Profit Efficiency; Data Envelopment Analysis |
| JEL: | G21 C23 G2 |
| Date: | 2006–05–01 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:2487&r=cwa |
| By: | Asma Hyder (Pakistan Institute of Development Economics, Islamabad) |
| Abstract: | This paper examines the magnitude of public/private wage differentials in Pakistan using data drawn from the 2001-02 Labour Force Survey. Pakistan Labour Force Survey is a nationwide survey containing micro data from all over the country containing demographic and employment information. As in many other countries, public sector workers in Pakistan tend to have higher average pay and educational levels as compared to their private sector counterparts. First, this paper presents the inter-sectoral earning equations for the three main sectors of the economy, i.e., public, private, and state-owned enterprises. These results are further decomposed into “treatment” and “endowment effect”. To examine the role of human capital in wage gap, the rate of return to different levels of schooling is calculated. These rates of return to education may be important for policy formulation. The relative earning share is also worked out to look into the distribution of wages across the occupational categories. The earning equations are estimated with and without correction for selectivity, which is also the main objective of the study, i.e., to find out if any non-random selection is taking place within these three sectors of employment |
| Keywords: | Wage Differentials, Rate of Return to Education, Public Sector Labour Markets |
| JEL: | J32 J45 J24 |
| Date: | 2007 |
| URL: | http://d.repec.org/n?u=RePEc:pid:wpaper:17&r=cwa |
| By: | M. Ali Kemal (Pakistan Institute of Development Economics, Islamabad) |
| Abstract: | Rise in the underground economy creates problems for the policy-makers to formulate economic policies, especially the monetary and fiscal policies. It is found that if there was no tax evasion, budgets balance might have been zero and positive for some years and we would not have needed to borrow as much as we had borrowed. It is concluded that the impact of the underground economy is significant to the movements of the formal economy, but the impact of formal economy is insignificant in explaining the movements in the underground economy. In the long run, underground economy and official economy are positively associated. It is estimated that the underground economy ranges between Rs 2.91 trillion and Rs 3.34 trillion (54.6 percent of GDP to 62.8 percent of GDP respectively) in 2005 and tax evasion ranges between Rs 302 billion and Rs 347 billion (5.7 percent of GDP to 6.5 percent of GDP respectively) in 2005. Underground economy and tax evasion were increasing very rapidly in the early 1980s but the rate of increase accelerated in the 1990s. It declined in 1999, but reverted to an increasing trend until 2003. It declined again in 2004 and 2005 |
| Keywords: | Underground Economy, Tax Evasion |
| JEL: | E26 H26 |
| Date: | 2007 |
| URL: | http://d.repec.org/n?u=RePEc:pid:wpaper:13&r=cwa |
| By: | Cifter, Atilla; Ozun, Alper |
| Abstract: | Tests results for causality between energy consumption and economic growth do not have a consensus in the financial economics literature. Empirical evidence varies on the economies examined and methodology employed. This paper proposes a wavelet analysis as a semi- parametric model for detecting multi-scale causality between electricity consumption and growth in emerging economies. Using wavelet analysis we find that in the short run there is feedback relationship between GNP and energy consumption, while in the long run GNP leads to energy consumption. Wavelet correlation between GNP and energy consumption is maximum at 3rd time-scale(5-8 years) and this shows that GNP effects electricity consumption maximally around 5-8 years later in the long-run. We also find that the magnitude of the wavelet correlation changes based on time-scales for GNP and energy consumption and thus indicate that GNP and energy consumption are fundamentally different in the long run. |
| Keywords: | Economic Growth; Energy Consumption; Employment; Wavelets; Causality |
| JEL: | Q43 C1 C32 |
| Date: | 2007–03–01 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:2483&r=cwa |
| By: | Attiya Y. Javed (Pakistan Institute of Development Economics, Islamabad); Robina Iqbal (Quaid-i-Azam University, Islamabad) |
| Abstract: | We investigated whether differences in quality of firm-level corporate governance can explain the firm-level performance in a cross-section of companies listed at Karachi Stock Exchange. Therefore, we analysed the relationship between firm-level value as measured by Tobin’s Q and total Corporate Governance Index (CGI) and three sub-indices: Board, Shareholdings and Ownership, and Disclosures and Transparency for a sample of 50 firms. The results indicate that corporate governance does matter in Pakistan. However, not all elements of governance are important. The board composition and ownership and shareholdings enhance firm performance, whereas disclosure and transparency has no significant effect on firm performance. We point out that those adequate firm-level governance standards can not replace the solidity of the firm. The low production and bad management practices |
| Keywords: | Corporate Governance, Firm Performance, Tobin’s Q, Agency Problem, Board Size, Shareholdings, Disclosures, Leverage, Code of Corporate Governance |
| JEL: | G12 G34 G38 |
| Date: | 2007 |
| URL: | http://d.repec.org/n?u=RePEc:pid:wpaper:14&r=cwa |
| By: | Cifter, Atilla; Ozun, Alper |
| Abstract: | This paper proposes a powerful methodology wavelet networks to investigate the effects of international F/X markets on emerging markets currencies. We used EUR/USD parity as input indicator (international F/X markets) and three emerging markets currencies as Brazilian Real, Turkish Lira and Russian Ruble as output indicator (emerging markets currency). We test if the effects of international F/X markets change across different timescale. Using wavelet networks, we showed that the effects of international F/X markets increase with higher timescale. This evidence shows that the causality of international F/X markets on emerging markets should be tested based on 64-128 days effect. We also find that the effects of EUR/USD parity on Turkish Lira is higher on 17-32 days and 65-128 days scales and this evidence shows that Turkish lira is less stable compare to other emerging markets currencies as international F/X markets effects Turkish lira on shorten time scale. |
| Keywords: | F/X Markets; Emerging markets; Wavelet networks; Wavelets; Neural networks |
| JEL: | C45 F31 G15 |
| Date: | 2007–03–01 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:2482&r=cwa |
| By: | Hsiao Chink Tang |
| Abstract: | This paper investigates the relative strength of four monetary policy transmission channels (exchange rate, asset price, interest rate and credit) in Malaysia using a 12-variable open economy VAR model. By comparing the baseline impulse response with the constrained impulse response where a particular channel is being switched off, the interest rate channel is found to be the most important in influencing output and inflation in the horizon of about two years, and the credit channel beyond that. The asset price channel is also relevant in the shorter-horizon, more so than the exchange rate channel, particularly in influencing output. For inflation, the exchange rate channel is more relevant than the asset price channel. |
| Date: | 2006–08 |
| URL: | http://d.repec.org/n?u=RePEc:acb:camaaa:2006-23&r=cwa |
| By: | Yayla, Hilmi Erdogan; Kirkbir, Fazil; Cengiz, Ekrem |
| Abstract: | The purpose of this paper is to analyze interpersonal relationships of accounting employees affecting the effectiveness of firms’ performance. For this purpose, a structural equation model was adopted from Kang et al. (2004) and was tested. A questionnary was distributed to 187 companies’ accounting departments from Blacksea region of Turkiye which are choosen with arbitrary sampling method from the lists of related region’s Chambers of Commerce and Industry. We find that, although no significant relation between balanced power and confidence, there are significant relationships between conflict and confidence, shared values and confidence, conflict and collaboration, shared values and collaboration, balanced power and collaboration, communication and collaboration. Overall our findings indicate that confidence and collaboration among the accounting department employees have direct influence on the firm performance. |
| Keywords: | Accounting departments; departmental behaviors; firm performance. |
| JEL: | J20 M12 M41 |
| Date: | 2007 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:2558&r=cwa |
| By: | Muhammad Arshad Khan (Pakistan Institute of Development Economics, Islamabad) |
| Abstract: | Recent theoretical and empirical literature suggests that foreign direct investment (FDI) exerted positive impact on economic growth through the process of technological diffusion. The literature also suggests that the development of the domestic financial system of the host country is an important pre-condition for FDI to have a positive impact on economic growth. A welldeveloped domestic financial sector enhances efficient allocation of financial resources and improves the absorptive capacity of a country with respect to FDI inflows. Particularly, a more developed financial system positively contributes to the process of technological diffusion associated with foreign direct investment. In this study, we examine the link between FDI, domestic financial sector, and economic growth for Pakistan over the period 1972–2005. Empirical analysis is based on the bound testing approach of cointegration advanced by Pesaran, et al. (2001). The results suggest that FDI inflows exerted positive impact on economic growth in the short-run and the long-run if the domestic financial system has achieved a certain minimum-level development. The results further suggest that better domestic financial conditions not only attract foreign companies to invest in Pakistan, but also allow maximising the benefits of foreign investment |
| Keywords: | Foreign Direct Investment, Financial Sector Development, Economic Growth, Technology Spillovers |
| JEL: | F21 F36 F43 O16 |
| Date: | 2007 |
| URL: | http://d.repec.org/n?u=RePEc:pid:wpaper:18&r=cwa |