nep-sea New Economics Papers
on South East Asia
Issue of 2011‒07‒21
twenty-six papers chosen by
Kavita Iyengar
Asian Development Bank

  1. Developing ASEAN5 Bond Markets: What Still Needs to be Done? By Simon Gray; Ana Carvajal; Andreas Jobst; Joshua Felman
  2. ASEAN5 Bond Market Development: Where Does it Stand? Where is it Going? By Mangal Goswami; Shanaka J. Peiris; Simon Gray; Andreas Jobst; Dulani Seneviratne; Joshua Felman; Mahmood Pradhan
  3. Financing Infrastructure for Connectivity: Policy Implications for Asia By Bhattacharyay, Biswa Nath
  4. The Maritime Potential of ASEAN Economies By Evers, Hans-Dieter; Karim, Azhari
  5. Sovereign Spreads and Contagion Risks in Asia By D. Filiz Unsal; Carlos Caceres
  9. Nations as Strategic Players in Global Commodity Markets: Evidence from World Coal Trade By Paulus, Moritz; Trueby, Johannes; Growitsch, Christian
  11. PROFILE OF SME’S STRATEGIC ALLIANCE IN MALAYSIA By Mehdi Mohammadi Poorangi; Dr. Edward Wong Sek Khin
  12. The Development of Local Debt Markets in Asia By Mangal Goswami; Sunil Sharma
  15. Does better local governance improve district growth performance in Indonesia? By Neil McCulloch; Edmund Malesky
  16. HERITAGE TOURISM WEBSITE EVALUATION FRAMEWORK By Zahra Pourabedin; Sahimeh Hosseini; Amin Nourizadeh
  18. FACILITIES MANAGEMENT COMPETENCY IMPERATIVES TO REALISE POLYTECHNIC TRANSFORMATION GOALS By Mariah Binti Awang; Abd Hakim Bin Mohammed; Suwaibatul Islamiah Bt Abdullah Sani; Fatin Syazwina Bt Abdul Shukor
  19. Exchange Rate Pass-Through over the Business Cycle in Singapore By Joey Chew; Siang Meng Tan; Sam Ouliaris
  20. ENVIRONMENTAL MANAGEMENT ACCOUNTING AND FIRM PERFORMANCE By Sayedeh Parastoo Saeidi; Saudah Sofian; Parvaneh Saeidi
  21. Self-employment of rural-to-urban migrants in China By Giulietti, Corrado; Ning, Guangjie; Zimmermann, Klaus F
  22. Real Interest Parity: A Note on Asian Countries Using Panel Stationarity Tests By Mark J. Holmes; Jesús Otero; Theodore Panagiotidis
  23. Specification Sensitivities in Right-Tailed Unit Root Testing for Financial Bubbles By Shu-Ping Shi; Peter C. B. Phillips; Jun Yu
  25. The Colonial Origins of the Divergence in the Americas: A Labour Market Approach By Robert C. Allen; Tommy E. Murphy; Eric B. Schneider

  1. By: Simon Gray; Ana Carvajal; Andreas Jobst; Joshua Felman
    Abstract: This paper examines a range of issues relating to bond markets in the ASEAN5 (Indonesia, Malaysia, Philippines, Singapore and Thailand) - physical infrastructure including trading, clearing and settlement; regulation, supervision and legal underpinnings; and derivatives markets - and finds that the frameworks compare well with other Emerging Markets, following a decade of reform. A number of areas where further enhancements could be made are highlighted. The paper also examines the interrelationship between central bank management of short-term interest rates and domestic currency liquidity, and development of the wider money and bond markets; and suggests some lessons from the recent crisis in developed country financial markets which may be important for the future development of the ASEAN5 markets.
    Keywords: Asia , Bond markets , Central banks , Financial crisis , Global Financial Crisis 2008-2009 , Indonesia , Liquidity management , Malaysia , Philippines , Singapore , Taxation , Thailand ,
    Date: 2011–06–09
  2. By: Mangal Goswami; Shanaka J. Peiris; Simon Gray; Andreas Jobst; Dulani Seneviratne; Joshua Felman; Mahmood Pradhan
    Abstract: Since the Asian crisis, ASEAN5 countries have expended considerable effort in trying to develop their domestic bond markets. Yet today these markets are not much larger, relative to GDP, than they were a decade before. How can we explain this? And does this mean that domestic markets have not, in fact, developed? The paper argues that bond market growth has been held back by a sharp fall in investment rates, which has left firms with little need for bond borrowing. Even so, markets have developed in other ways, to such an extent that substantial amounts of foreign portfolio investment have begun to flow into ASEAN5 bonds. These developments have important ramifications. With the investor base growing and infrastructure investment likely to rise, ASEAN5 bond markets could expand rapidly over the next decade, holding out the prospect that the region could finally achieve "twin engine" financial systems.
    Keywords: Asia , Bond markets , Bonds , Borrowing , Corporate sector , Demand , Indonesia , Investment , Malaysia , Philippines , Singapore , Thailand ,
    Date: 2011–06–14
  3. By: Bhattacharyay, Biswa Nath (Asian Development Bank Institute)
    Abstract: In view of Asia's huge infrastructure needs, as well as the reduced demand for exports due to the ongoing global financial and economic crisis, infrastructure projects offer a way of increasing regional demand and intraregional trade. This policy brief proposes various ways to tap Asia's huge financial resources to fund essential infrastructure. The key challenges include integrating financial markets to mobilize Asian savings for infrastructure, and providing proper incentives to investors, particularly those in the private sector, by developing appropriate policies, regulations, and institutions and long-term innovative financial instruments.
    Keywords: infrastructure asia; asia financial reserves; investment incentives
    JEL: G00
    Date: 2011–07–10
  4. By: Evers, Hans-Dieter; Karim, Azhari
    Abstract: Countries may utilize a long coastline in relation to their landmass as a resource to develop their maritime economy. This paper argues that ASEAN countries differ in utilizing their maritime potential. As a basis for further comparative studies the Center for Policy Research and International Studies (CenPRIS) in Penang developed a set of indicators to measure the maritime potential of nations, the state of their maritime industries, and the degree to which the maritime potential has actually been utilized. Using the CenPRIS Ocean Index (COI) shows that Brunei and the Philippines have underutilized their maritime potentials, whereas Singapore and Thailand have made full use of it. Malaysia still has the potential to further develop its maritime economy.
    Keywords: ASEAN; Malaysia;shipping; fisheries; maritime economy; resources; indicators
    JEL: O1 N7
    Date: 2011–03–11
  5. By: D. Filiz Unsal; Carlos Caceres
    Abstract: This paper explores how much of the movements in the sovereign spreads of Asian economies over the course of the global financial crisis has reflected shifts in (i) global risk aversion; (ii) country-specific risks, directly from worsening fundamentals, and indirectly from spillovers originating in other sovereigns and the uncertainty surrounding exchange rates. Earlier in the crisis, the increase in market-implied contagion led to higher Asian sovereign bond yield spreads over swaps. But, after the crisis, Asia’s sovereign spreads normalized, despite the debt crisis in the euro area, reflecting a fall in both exchange rate and spillover risks.
    Keywords: Asia , Bond markets , Bonds , Exchange rates , Financial crisis , Financial risk , Global Financial Crisis 2008-2009 , Sovereign debt ,
    Date: 2011–06–08
  6. By: Redwhan Ahmed AL-Dhamari; Prof. Ku Nor Izah Bt Ku Ismail (College of Business, Universiti Utara Malaysia)
    Abstract: Theoretically, good corporate governance mechanisms are expected to enhance the quality of reported earnings to financial statement users. Nevertheless, some existent literature on the association between ownership structure and earnings quality in both developed and developing countries have reported inconclusive results. Thus, the objective of this study is to empirically investigate the relationship between ownership structure and earnings quality of non-financial firms listed on the Bursa Malaysia when considering free cash flow agency problem. Stock ownership by management and institutions are used to represent ownership structure. The quality of earnings is analysed through earnings persistence, earnings predictability, and earnings informativeness. Ownership structure, financial, and stock price data are gathered from sample firms for the years of 2008 through 2009. Pooled hierarchical regressions for each model are conducted to test the hypotheses
    Keywords: Corporate Governance, Earnings Quality, Free Cash Flow Agency Problem
    JEL: M00
    Date: 2011–06
  7. By: Nordin Abdul Jamil; Assoc. Prof. Dr. Nik Kamariah Nik Mat (Universiti Utara Malaysia)
    Abstract: Internet purchasing has been a growing phenomenon around the globe, especially among countries that have well-developed infrastructure for marketing activities over the Internet. Despite of the world internet potential, the growth of actual number of internet users who purchased online in Malaysia has been quite low, but it is gaining popularity Thus, our study intends to investigate the drivers of internet purchasing behavior in Malaysia based on the application of Theory of Planned Behavior (TPB). This study examines the relationships between attitude, subjective norms, and perceived behavioral control toward intention to purchase and actual internet purchasing. Data was collected from 290 internet users consisting of executives of private firms in Malaysia via questionnaires and analyzed using Structural Equation Modeling (SEM). The result of generated model conforms to goodness of fit and produces two direct significant impacts on actual online purchasing (purchase intention and attitude), thus supporting hypotheses H1 and H2. Finally, the generated model achieved SMC (R2) explaining 39.4 percent variance in actual online purchasing, and 11.0 percent variance on purchase intention. The findings are discussed in the context of internet purchasing behaviour in Malaysia
    Keywords: TPB, Actual online purchasing, Purchase intention, Attitude, Subjective Norms, Perceived Behavioural Control
    JEL: M00
    Date: 2011–06
  8. By: Kamarudin Abu Bakar; Ismi Rajiani (Faculty of Technology Management & Technopreneurship, Universiti Teknikal Malaysia Melaka); Md Razali Ayob (Faculty of Mechanical Engineering, Universiti Teknikal Malaysia Melaka); Noor Shawal Nasri (Faculty of Chemical & Natural Resources Engineering, Universiti Teknologi Malaysia)
    Abstract: A-F-F-I-R-M is the holistic approach taken by the Malaysian government in completing an ecosystem for environmental sustainability. It expresses the commitment of all stakeholders toward sustainable development in Malaysia. Thus, it is necessary to complete the ecosystem into one that achieves satisfactory levels of environmental sustainability. Hence, this research intends to explore the suitability adoption of A-F-F-I-R-M within the Foresight Model of the environmental-socio-economic dimension of Malaysian, in which the outcome of the research is important as it can determine whether we (the “actors”) would all be able to work together to foster green technology as well as extending this call to the world largely and collectively, changing the landscape of the earth for the betterment of future generations. For this reason, the Author(s) has proposed a refine research framework for more effective study of the issue
    Keywords: Ecosystem, Sustainable Development, Environmental-Socio-Economic, Green Technology, Actors
    JEL: M00
    Date: 2011–06
  9. By: Paulus, Moritz (Energiewirtschaftliches Institut an der Universitaet zu Koeln); Trueby, Johannes (Energiewirtschaftliches Institut an der Universitaet zu Koeln); Growitsch, Christian (Energiewirtschaftliches Institut an der Universitaet zu Koeln)
    Abstract: We explore the hypothesis that export policies and trade patterns of national players in the steam coal market are consistent with non-competitive market behavior. We test this hypothesis by developing an equilibrium model which is able to model coal producing nations as strategic players. We explicitly account for integrated seaborne trade and domestic markets. The global steam coal market is simulated under several imperfect market structure setups. We find that trade and prices of a China - Indonesia duopoly fit the real market outcome best and that real Chinese export quotas in 2008 were consistent with simulated exports under a Cournot-Nash strategy.
    Keywords: Strategic National Trade; Imperfect Competition; Steam Coal; China; Indonesia
    JEL: C61 F10 L13 L71
    Date: 2011–06–01
  10. By: Yodfiatfinda; Mad Nasir Shamsudin; Zainalabidin Mohamed (Department of Agribusiness, Faculty of Agriculture, Universiti Putra Malaysia); Zulkornain Yusop (Department of Economics, Faculty of Economics and Management, Universiti Putra Malaysia); Alias Radam (Department of Management and Marketing, Faculty of Economics and Management, Universiti Putra Malaysia)
    Abstract: Food processing industry plays an important role in the Malaysian economy. The industry contributes about 10% to the total manufacturing output. This study aims to investigate the impacts of foreign ownership and openness to productivity growth in the Malaysian Food Processing Industry (FPI). A non parametric approach Data Envelopment Analysis (DEA) was employed to examine the total factor productivity growth. We employ five-digit panel data for the period of 2000-2006. The data was tested for stationary using Augmented Dickey Fuller (ADF) unit root test, and Hausman specification test to obtain the more appropriate model. Fixed effect model is the best model for estimation factor affecting total factor productivity growth in the small and medium enterprises (SMEs) and the large scale enterprises (LSEs). The Malaysian FPI was experiencing with negative total factor productivity growth (-1.3%) in the SMEs and positive (7.3%) in the LSEs during 2001 to 2006. The results also suggest that foreign ownership is positively affecting total factor productivity growth both in the SMEs and the LSEs but not significant. However, openness is positively influencing the productivity growth in the SMEs and significant at five percent confidence level in the LSEs
    Keywords: Food processing industry, data envelopment analysis, foreign ownership, openness and Malaysia
    JEL: M00
    Date: 2011–06
  11. By: Mehdi Mohammadi Poorangi; Dr. Edward Wong Sek Khin (Faculty of Business and Accountancy, University of Malaya)
    Abstract: In the third millennium, competition has become tough and unpredictable and all organizational regardless of their size and scope of operation are facing fierce competitive challenges. In management, one of the most reliable ways to cope with these challenges quickly and effectively is strategic alliance or partnership. Consequently, strategic alliance has attracted lots of attention from the researchers and managers over past years. Technically, strategic alliance is a systematic approach to share the resources, acquire more capabilities, and finally create cooperative and competitive advantages. This study addressed the concept of strategic alliance amongst Malaysian SMEs in different industries and tried to create a regulatory framework for the SME strategic alliance in Malaysia from a holistic view based on the statements of the sampled SMEs’ executives. The findings of the study showed that in conducting a strategic partnership program the first step must be selecting a potential partner and this process requires a full understanding of partners across two dimensions: 1. Resources and capabilities, and 2. Cost and risks. In addition, strategic alliance can shape domestically as well as internationally and also in the form of a network of multiple alliances and the tendency of an enterprise in forming such partnership programs indicate the attitude of executives toward the alliance. Finally, it also has been found that learning and sharing knowledge resources is a critical factor in success of any strategic alliance
    Keywords: strategic alliance, Small and medium enterprises (SMEs), resource based view (RBV)
    JEL: M00
    Date: 2011–06
  12. By: Mangal Goswami; Sunil Sharma
    Abstract: The paper makes an assessment of the progress made in developing local debt markets in emerging Asia. Market development has been limited by hurdles confronting borrowers and lenders, current and potential liquidity providers, and insufficient support from government policies and regulations. Besides fostering a credit culture to deepen local debt markets, the issue of critical size can be addressed through an integrated regional market for local currency bonds that provides greater scale, efficiency, and access. With rapid economic growth in Asia, a key challenge is to generate financial assets that can provide the underlying collateral for expanding fixed-income markets, and hence domestic and regional investment opportunities.
    Keywords: Access to capital markets , Asia , Bond issues , Bond markets , Borrowing , Capital markets , Corporate sector , Debt management , Emerging markets , External financing ,
    Date: 2011–06–07
  13. By: Abd Razak Ahmad; Wan Fauziah Wan Yusoff; Haris Md Noor; Ahmad Kaseri Ramin (Faculty of Technology Management, Business and Entrepreneurship, Universiti Tun Hussein Onn Malaysia)
    Abstract: Rural entrepreneurship is acknowledged as an important component that contributes to the economic development of a country. In Malaysia, until recent much attention has been given by the government to ensure the success of the program. Nevertheless, the development of the program has not meeting the government plan. Therefore, this study aims to explore the rural entrepreneurship program in Johor. Specifically the objective of the study is to identify entrepreneurs’ understanding towards the program and the effectiveness of the programs. The data of the study was captured using structured questionnaires involving 32 rural entrepreneurs who had participated in the Ministry of Rural and Regional Development programs. The study revealed that level of understanding of the program was high. The mean score of the five measurements of understanding (promotion awareness, promotion content, suitability of the program, program content and program activities) was 4.4. In term of the effectiveness of the program, although overall mean score was at high level (3.7) two aspects; integration and coordination found to be less effective with the average score of 2.3 and 2.4 respectively . It can be concluded although the entrepreneurs highly understood about the program, the program need further improvement in term of integration and coordination. It is hoped that this study can provide some information that can be used by the respective ministry in enhancing the rural entrepreneurship development program in Malaysia
    Keywords: Entrepreneurship, Rural Entrepreneurship, Rural Areas
    JEL: M00
    Date: 2011–06
  14. By: Loganathan, Nanthakumar; Muhammad Najit Sukemi (Department of Economics, Faculty of Management and Economics, Universiti Malaysia Terengganu); Mori Kogid (School of Business and Economics, Universiti Malaysia Sabah)
    Abstract: The Malaysian economy has gone through a process of profound changes for the past 30 years. From the global economics perspective, the decade started with inflation pressures, deep recession in the middle of 1980s and 1990s, and decline of trade balance and with high level of unemployment rate in 1980s. The aim of this paper is to trace out more about the asymmetrical integration between trade balance and unemployment dynamics for Malaysia using Granger non-causality test analysis. The major finding of this paper shows that increased in trade balance has a negative Granger non-causality effects on rigidity of unemployment dynamics for the case of Malaysia. This indicates that trade liberalization is also able to increase aggregate productivity in the differentiated sectors and able increase efficiency on economic performance will simultaneous increase in term of employment opportunities for skilled and unskilled labor in Malaysia. Trade balance can be also become an additional favorable effects of reducing Malaysia’s unemployment scenario in future
    Keywords: Granger non-causality analysis, trade balance, unemployment
    JEL: M00
    Date: 2011–06
  15. By: Neil McCulloch (Institute of Development Studies (IDS), University of Sussex); Edmund Malesky (Graduate School of International Relations and Pacific Studies, \sUniversity of California)
    Abstract: A large literature suggests that countries with better governance have higher growth rates. We explore whether this is also true at the sub-national level in Indonesia. We exploit a new dataset of firm perceptions of the quality of economic governance in 243 districts across Indonesia to estimate the impact of nine different dimensions of governance on district growth. Surprisingly, we find relatively little evidence of a robust relationship between the quality of governance and economic performance. However, we do find support for the idea that structural variables, such as economic size, natural resource endowments and population, have a direct influence on the quality of local governance as well as on economic growth. This suggests that efforts to improve local governance should pay greater attention to understanding how such structural characteristics shape the local political economy and how this in turn influences economic performance.
    Keywords: governance, institutions, economic performance, economic growth
    JEL: H70 O43 O56
    Date: 2011–02
  16. By: Zahra Pourabedin; Sahimeh Hosseini; Amin Nourizadeh (University Technology Malaysia)
    Abstract: Nowadays, information technology has strong effect on tourism industry hence; heritage tourism which is one of the developing areas is not apart of it. Website evaluation study is one of the interesting areas among all researches have been done on internet usage in tourism industry. Considering the popularity of heritage attractions among tourists, developing a criteria for heritage tourism websites is vital. Due to in-depth interviews and review of related literatures, this study tries to propose a website evaluation framework for heritage tourism websites. The four criteria concluded are, Information content, marketing and value added activities, Information design and relationships
    Keywords: website design, destination marketing, heritage tourism
    JEL: M00
    Date: 2011–06
  17. By: Zurinah bt Tahir; Khadijah bt Hussin (Department of Land Administration and Development, Universiti Teknologi Malaysia, Skudai Malaysia)
    Abstract: Public safety, an important national agenda, has featured prominently in the 10th Malaysia Plan. Various strategies have been formulated towards creating a safer environment in which to live and work. Crime affects not only the public but also the economy. Taking cognizance of this fact, the Government has implemented various programmes to reduce the crime rate, and to create a safer and more secure living environment. The development of residential properties under the Gated Community concept is considered as one of the most effective methods to ensure the safety of residents. Equipped with security controls at all the times, this type of development could complement the Safe Township concept. This seminar paper discusses the security features in the Gated Community housing development as measures to combat crime in line with the implementation of the Safe Township concept
    Keywords: Crime, Gated Community, Preventive Measures, Safe Township Concept, Safety, Security
    JEL: M00
    Date: 2011–06
  18. By: Mariah Binti Awang; Abd Hakim Bin Mohammed; Suwaibatul Islamiah Bt Abdullah Sani; Fatin Syazwina Bt Abdul Shukor (Faculty of Geoinformation and Real Estate,Universiti Teknologi Malaysia)
    Abstract: The profession of facilities management has emerged in parallel with the current technological revolution and that has been accepted by many countries all over the world. The involvement of facilities managers from various professional backgrounds will be able to contribute the successful or more significant of facility management practices. Regarding to this, the competency of facilities manager is needed in an organization to achieve the objectives of the organization. The discussion here will look into the facility management competencies and core competency of facilities manager. Besides that, this article also discusses the needs for competence in the management of facilities in the polytechnics. Therefore there are three (3) major issues that will contribute to the requirements of competence in the management of the polytechnic. To resolve the issue, the author suggests to use the competency modeling and taking into account the four (4) core competencies recommended by the facility management of higher education institutions
    Keywords: Facilities Management, competencies, Higher Education Institution
    JEL: M00
    Date: 2011–06
  19. By: Joey Chew; Siang Meng Tan; Sam Ouliaris
    Abstract: This paper investigates exchange rate pass-through in Singapore using band-pass spectral regression techniques, allowing for asymmetric effects over the business cycle. First stage pass-through is estimated to be complete and relatively quick, confirming existing views that the exchange rate provides an effective tool to moderate imported inflation in Singapore. Asymmetric pass-through effects over the business cycle are also detected, with importers passing on a smaller share of exchange rate movements during boom periods as compared to recessions. This result suggest that Singapore’s exchange rate policy could afford to "lean against the wind," especially during cyclical expansions.
    Keywords: Business cycles , Economic models , Exchange rate policy , Monetary policy , Singapore ,
    Date: 2011–06–17
  20. By: Sayedeh Parastoo Saeidi; Saudah Sofian; Parvaneh Saeidi (Faculty of Management and Human Resource Development University Technology Malaysia)
    Abstract: Increasing awareness and concerns of environmental problems has led organizations to confront with environmental issues in their path process to better firm performance. This paper aims to have a comprehensive review on the relationship between environmental management accounting and firm performance and also explores the role of innovation and competitive advantage as two effective mediator variables in this relationship. This study presents a comprehensive picture of this path process which has previously been partially discussed in the literatures. Finally, this paper suggests a framework for future research on how EMA lead to firm performance through innovation and competitive advantage
    Keywords: Environmental Management Accounting, Firm performance, Innovation, Competitive advantage
    JEL: M00
    Date: 2011–06
  21. By: Giulietti, Corrado; Ning, Guangjie; Zimmermann, Klaus F
    Abstract: This paper focuses on the determinants of self-employment among rural to urban migrants in China. Two self-selection mechanisms are analysed: the first relates to the manner in which migrants choose self-employment or paid work based on the potential gains from either type of employment; the second takes into account that the determinants of the migration decision can be correlated with employment choices. Using data from the 2008 Rural-Urban Migration in China and Indonesia (RUMiCI) survey, a selection model with endogenous switching is estimated. Earnings estimates are then used to derive the wage differential, which in turn is used to model the employment choice. The procedure is extended to account for migration selectivity and to compare individuals with different migration background and employment histories. The results indicate that self-employed individuals are positively selected with respect to their unobserved characteristics. Furthermore, the wage differential is found to be an important driver of the self-employment choice.
    Keywords: European Union; rural to urban migration; selection bias magnets; self-employment; wages
    JEL: J23 J61 O15
    Date: 2011–07
  22. By: Mark J. Holmes (Department of Economics, Waikato University, New Zealand); Jesús Otero (Facultad de Economía, Universidad del Rosario, Colombia); Theodore Panagiotidis (Department of Economics, University of Macedonia, Greece)
    Abstract: Existing panel data studies of real interest parity are either unable to identify which panel members are characterised by stationary real interest differentials, or are subject to size distortion resulting from the presence of structural breaks and cross-sectional dependencies. Using a panel stationarity testing procedure recently advocated by Hadri and Rao (2008) that allows for structural breaks and cross-sectional dependency, we are unable to reject the stationarity of Asian real interest rate differentials.
    Keywords: Heterogeneous dynamic panels, real interest parity, mean reversion, panel stationarity test.
    JEL: C33 F36 G15
    Date: 2011–07
  23. By: Shu-Ping Shi (The Australian National University); Peter C. B. Phillips (Yale University, University of Auckland, University of Southampton and Singapore Management University); Jun Yu (Singapore Management University and Hong Kong Institute for Monetary Research)
    Abstract: Right-tailed unit root tests have proved promising for detecting exuberance in economic and financial activities. Like left-tailed tests, the limit theory and test performance are sensitive to the null hypothesis and the model specification used in parameter estimation. This paper aims to provide some empirical guidelines for the practical implementation of right-tailed unit root tests, focusing on the sup ADF test of Phillips, Wu and Yu (2011), which implements a right-tailed ADF test repeatedly on a sequence of forward sample recursions. We analyze and compare the limit theory of the sup ADF test under different hypotheses and model specifications. The size and power properties of the test under various scenarios are examined in simulations and some recommendations for empirical practice are given. An empirical application to Nasdaq data reveals the practical importance of model specification on test outcomes.
    Keywords: Unit Root Test, Mildly Explosive Process, Recursive Regression, Size and Power
    JEL: C15 C22
    Date: 2011–06
  24. By: Ahmed Audu Maiyaki (College of Business, Universiti Utara Malaysia); Dr. Sany Sanuri Mohd. Moktar (Quality Centre, Universiti Utara Malaysia)
    Abstract: The paper aims at exploring the data collected with regards to the above subject matter. Five hundred and fifty five sample size drawn from the Nigerian retail bank industry through multi-stage sampling design. Data screening and cleaning was performed in order to satisfy the assumptions of multivariate analysis. Consequently, the assessment of missing data, outliers, normality and multicollinearity were conducted. Furthermore, Exploratory Factor Analysis (EFA) was also conducted via Principal Component Analysis (PCA). All the analysis was done with the aid of Statistical Package for Social Science (SPSS) and Analysis of Moment Structures (AMOS) softwares. It was found that the data satisfy the requirements for multivariate analysis
    Keywords: consumer behavior, data screening, retail bank, Nigeria
    JEL: M00
    Date: 2011–06
  25. By: Robert C. Allen; Tommy E. Murphy; Eric B. Schneider
    Abstract: Part of a long-run project to put together a systematic database of prices and wages for the American continents, this paper takes a first look at standards of living in a series of North American and Latin American cities. From secondary sources we collected price data that –with diverse degrees of quality– covers various years between colonization and independence and, following the methodology now familiar in the literature, we built estimations of price indexes for Boston, Philadelphia, and the Chesapeake Bay region in North America and Bogotá, Mexico, and Potosí in Latin America exploring alternative assumptions on the characteristics of the reference basket. We use these indexes to deflate the (relatively more scarce) figures on wages, and compare the results with each other, and with the now widely known series for various European and Asian cities. We find that real wages were higher in North America than in Latin America from the very early colonial period: four times the World Bank Poverty Line (WBPL) in North America while only two times the WBPL in Latin America. These wages place the North American colonies among the most advanced countries in the world alongside Northwestern European countries and the Latin American colonies among the least developed countries at a similar level to Southern European and Asian countries. These wage differences existed from the early colonial period because wages in the American colonies were determined by wages in the respective metropoles and by the Malthusian population dynamics of indigenous peoples. Settlers would not migrate unless they could maintain their standard of living, so wages in the colonies were set in the metropole. Political institutions, forced labour regimes, economic geography, disease environments and culture shaped the size of the economy of each colony but did not affect income levels.
    Date: 2011
  26. By: Mana Khoshkam; Farideh Asadian; Mohammad Salmani Moghadam (Islamic Azad University of Tehran, Iran); Banafsheh M. Farahani (Universiti Sains Malaysia)
    Abstract: In recent years, tourism industry as a new approach for human coexistence, as well as economic productivity has a significant role in the development theme. It is confirmed that environmental strength is one of the main factors for attracting tourists in order to visit a destination. In this matter Eco-tourism has turned out to be one of the alternatives for countries like Iran with wealthy nature. Iran by its unique nature with 1,648,195 km2 area is surrounded by Caspian Sea in the North, Persian Gulf and Oman Sea in the South. It is also contain desert in central area as well as mountain in the North and North-west. Wetlands are the other natural attraction which quite a number of them are located in different parts of this country. Chaghakhor wetland in Chahar Mahal and Bakhtiari province consider as one of them. This paper attempts to review and evaluate the influence of locals’ condition including living condition and economical condition on tourists destination visit. A quantitative method was applied by distributing self administrated questionnaire to tourists visiting the area as well as key holders in the mentioned region. The respondents were asked about the influence of locals’ living condition as well as locals’ economical condition e.g. their occupation, income, and welfare on tourists decision to visit the place. Accordingly, the results of statistical analysis shows that there is not positive relationship between the locals’ living condition and tourists decision making, and it is just tourist attraction which influence their decision to visit the place. The investigation was determined that an individual economical and living condition is one of the most important factors of attracting national and international tourists to visit the destination
    Keywords: Chaghakhor, Wetland, Eco-tourism, Living Condition
    JEL: M00
    Date: 2011–06

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