nep-isf New Economics Papers
on Islamic Finance
Issue of 2021‒02‒01
three papers chosen by
Mohamed Mohamed Tolba Said

  1. Long-run stability of money demand and monetary policy: the case of Algeria By Raouf Boucekkine; Mohammed Laksaci; Mohamed Touati-Tliba
  2. Diversifier or More? Hedge and Safe Haven Properties of Green Bonds During COVID-19 By Arif, Muhammad; Naeem, Muhammad Abubakr; Farid, Saqib; Nepal, Rabindra; Jamasb, Tooraj
  3. Exploring The Drivers of Technology Acceptance: A study on Pakistani University Student By Shamshad, Aiman; Mumtaz, Tasmia; Muhammad, Uzair; Abdul, Haseeb; Shah, Syed Jibran Ali

  1. By: Raouf Boucekkine (Aix-Marseille Univ, CNRS, AMSE, Marseille, France.); Mohammed Laksaci (Ecole Supérieure de Banque, Alger, Algeria); Mohamed Touati-Tliba (Ecole Supérieure de Commerce d’Alger, Algeria)
    Abstract: We estimate the demand for money for monetary aggregates M1 and M2, and cash in Algeria over the period 1979-2019, and study its long-run stability. We show that the transaction motive is significant for all three aggregates, especially for the demand for cash, reflecting the weight of informal economy “practices”. The elasticity of the scale variable is very close to unity for M2 and M1, and even equal to unity for cash demand (1.006). The elasticity of inflation is also significant for all three aggregates, although its level is higher in the case of cash demand (-6.474). Despite the persistence of certain financial repression mechanisms, interest rate elasticity is significant for all three aggregates, but higher for M1 and cash. The same observation is made for elasticity of the exchange rate, reflecting the effect of monetary substitution, especially for M1 and cash. Finally, our study concludes that the demand for money in terms of M1 remains stable, the same observation being confirmed for the M2 aggregate. However, the demand for fiat currency proves not to be stable. The consequences for the optimal design of monetary policy in Algeria are clearly stated.
    Keywords: monetary policy, money demand, long-run stability, resource-rich countries, Algeria, co-integration
    JEL: E41 E42 E52 C13
    Date: 2021–01
  2. By: Arif, Muhammad (Department of Business Administration, Shaheed Benazir Bhutto University, Shaheed Benazirabad, Pakistan); Naeem, Muhammad Abubakr (School of Economics and Finance, Massey University, New Zealand and Business Administration Department, Faculty of Management Sciences, ILMA University, Karachi, Pakistan); Farid, Saqib (School of Business and Economics, University of Management and Technology, Pakistan); Nepal, Rabindra (Faculty of Business and Law, School of Accountancy Economics and Finance, University of Wollongong, Australia); Jamasb, Tooraj (Department of Economics, Copenhagen Business School)
    Abstract: Against the backdrop of the Covid-19 pandemic, this study explores the hedging and safe-haven potential of green bonds for conventional equity, fixed income, commodity, and forex investments. We use the cross-quantilogram approach that provides a better understanding of the dynamic relationship between assets under different market conditions. Our full sample results show that the green bond index could serve as a diversifier asset for medium- and long-term equity investors. Besides, it can also serve as a hedging and safe haven instrument for currency and commodity investments. Moreover, the sub-sample analysis of the pandemic crisis period shows a heightened short- and medium-term lead-lag association between the green bond index and conventional investment returns. However, the green bond index emerges as a significant hedging and safe-haven asset for the long-term investors of conventional financial assets. Our results offer insights for long-term investors whose portfolios comprise conventional assets such as equities, commodities, forex, and fixed income securities. Further, our findings reveal the potential role that the green bond investments could play in global financial recovery efforts without compromising the low-carbon transition targets.
    Keywords: Green bonds; Hedge; Safe-haven; Cross-quantilogram; COVID-19
    JEL: G10 G11 G19 Q01
    Date: 2020–10–11
  3. By: Shamshad, Aiman; Mumtaz, Tasmia; Muhammad, Uzair; Abdul, Haseeb; Shah, Syed Jibran Ali
    Abstract: The purpose of this study is to validate the technology acceptance model (TAM) in an educational context to explore the drivers of technology on students of Pakistani university. Technologies have extended the teaching quality and open the new doors for the student to make their career highly professional. The data were collected from 508 students through online questionnaire in Pakistan. For analyzing the research model PLS-SEM partial least squares method to structural equation modeling was chosen to analyze the effect of Trialability, Attitude towards technology, Behavior intention, perceived ease of use, perceived enjoyment, facilitating condition, Perceived usefulness, Technology complexity and demographic factors. The gap which we have find is about underprivileged countries that are poor in technology and have not get advancement and success in there so many countries yet. Limitation for this study are we have collected the data from university students. The research is based on descriptive research. Researchers choose a no probabilistic convenience sampling technique to collect data as it is fast, inexpensive and easy. The finding of this study is that all the independent variable has positive and significant relationship with dependent variable. We recommend that future researcher can add more variable to the research and use most updated software version.
    Keywords: Trial ability, Facilitating Condition, Technology Complexity.
    JEL: I0
    Date: 2020

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