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Asian Economic and Financial Review
Publish by: Production and Hosting by Pak Publishing Group on behalf of Asian Economic and Social Socie
Online ISSN: 2222-6737
Print ISSN: 2305-2147
Online ISSN: 2222-6737
Print ISSN: 2305-2147
Print ISSN: 2305-2147
Total Citation: 1219
Robust Monetary Policy in An Uncertain Economic Environment: Evidence from Tunisian Economy
This paper tries to study the robust monetary policy in an uncertain economic environment. More precisely, our idea is to know how to conduct monetary policy in the case that the central bank does not correctly perceive the true model. Our approach is to estimate a dynamic macroeconomic model with three representations of dynamics inflation, each with microeconomic foundations. The three versions of model are estimated on Tunisian economy data with the Bayesian techniques. Our results show that the uncertainties of the structural parameters affect the dynamic solutions for the economy, but also on the objective functions of the central bank. His caution increased with the weights carried by the interest rate in the loss function. Thus, our results show the effectiveness of the simple robust rule of Levin and Williams.
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Financial Mutations and Fragility of The Tunisian Banks
Our study shows that financial liberalization has been followed by a profound transformation and banking system fragility. Our investigation test seeks to determine the fragility index of the Tunisian banking system over the period post liberalization. Our investigation is resulting from the study of Kibritcioglu (2002) which consist of an aggregation of three variables which reflect the symptom of a banking crisis. Our results showed a causality relation between financial liberalization and the banking systems fragility. We argued a period of high fragility starting from 1986 (date of the liberalization process adoption in Tunisia).
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Are Islamic Banks More Resilient To Global Financial Crisis Than Conventional Banks?
Development of global finance in recent years is marketed with the fastest growth in Islamic finance. The recent global financial crisis is characterized by the failure of a number of conventional banks. This led many researchers to reexamine the efficiency of Islamic banks compared to conventional ones and to study their capacity to resist to the financial crisis.The objective of our analysis is to study if Islamic banks are more resilient than conventional banks to the recent global financial crisis. To do this, two empirical investigations are proposed. The first one is based on the equality mean test. We compare the performance of IBs and CBs during global crisis (2007-2008) and after the crisis (2009-2010) in term of profitability, liquidity, efficiency, capital adequacy and leverage. The second investigation uses the Z-score as an indicator of bank stability in order to study the impact of the crisis on IBs and CBs. The main result derived from the first empirical test show that, when we consider the two periods, IBs become less profitable, more prone to credit risk and less efficient than CBs in the post crisis period. From the second investigation, we conclude that small banks fared better than large ones, IBs are less financially stable than CBs and large IBs perform better than large CBs, as suggested by Cihak and Hesse (2008).
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Relationship Between Financial Development and Economic Growth, Evidence from Financial Crisis
Narcise Amin Rashti --- Ebrahim Siami Araghi --- Mahdi Shayeste
This research studies the influence of financial development on economic growth with emphasis on the recent financial crisis. Variables considered in this study are indicators of financial development consisting of the ratio of the banking system credits to GDP, the ratio of services provided by the banking system to the private sector to GDP and the stock exchange to GDP, and variables of effective economy such as the ratio of investment to GDP and the openness of the economy and also the dummy variable of 2008 financial crisis. Starting from the Unites States and then taking the whole economy in the world, the recent financial crisis has had different effects on countries? economy. In order to survey the effects of this crisis on economic growth of different states based on the World Bank classification, three groups of countries have been studied: developed countries members of the OECD, high average income countries and low average income countries. The results of the models estimated using generalized methods of moments demonstrate that the financial crisis has had the most influence on developing countries with high average income and its effect has been less on developed countries and developing countries with low and middle average income. Moreover, indexes of financial development considered in banking sector have had negative effect on all supposed countries, but capital market shows positive effect on economic growth during 1990-2010 in the countries with low average income and negative effect on developed and high average income countries.
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Trade-Growth Nexus in Developing and Developed Countries: An Application of Extreme Bounds Analysis
Mansour Zarra-Nezhad --- Fatimah Hosseinpour --- Seyed Aziz Arman
In this study, we investigated the relationship between foreign trade and economic growth in the developing and developed countries by using extreme bounds analysis approach. For this we used unbalanced panel data of 103 variables of 94 countries (74 developing countries and 20 developed countries) during 1990-2010. The estimation results of more than 1.6 million regressions show that more foreign trade indices are robust determinants of economic growth and have robustly positive effect on the economic growth of each country regardless of level of development. In the other words, results of this study support views of free trade advocates.
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Evaluation of the Effect of Liquidity Growth on Saving Rate in the Developing Countries
Mohammad Reza Monjazeb --- Marzieh Rashvand Sadeghi --- Kobra Oladi
The role of savings in determining economic growth and investment is among issues that have always been considered in the formulation of policy and economic theories. This fact has been accepted that it is a quite necessary action to put aside a part of production i.e. to create saving to be converted in to production capital for maintaining the level of existing welfare and also achieving a higher level of welfare.The aim of the present study is to evaluate the role of liquidity growth on saving rates in 11 developing countries (Ecuador, Venezuela, Colombia, Armenia, Brazil, Iran, Azerbaijan, Turkey, Tunisia, China and Thailand) within the period 2001-2010. In this paper, the software EVIEWS and panel data analysis were used to evaluate the effect of liquidity growth on savings rates.Present study demonstrates the undeniable role of economic growth on saving, because the estimations results indicate that although both variables of liquidity ratio and economic growth have significant and positive effect on saving, but economic growth is more effective which is fully reasonable.
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Gender Difference Effects on Contributing Factors of Intention to Be Involved In Knowledge Creation and Sharing
Mohamed Jalaldeen Mohamed Razi --- Nor Shahriza Abdul Karim --- Norshidah Mohameda
The paper analyses the moderating effects of demographics factors of organizational members on the contributing factors of intention to be involved in Knowledge Management (KM) process; knowledge creation and knowledge sharing. The KM processes were operationalized through knowledge creation theory (SECI process). Data were collected from 313 executives in the Sri Lankan Telecommunication Industry using self-administered questionnaires. Two KM enablers; ‘trust & collaboration’ and ‘ICT use and support for search and sharing’, and two individual acceptance factors; ‘performance expectancy of KM’, and ‘effort expectancy of KM’ were considered as contributing factors of intention to be involved in KM process. The study found that gender moderates the relationship between ‘ICT use and support for search and sharing’, ‘performance expectancy of KM’ and intention to be involved in KM process. The findings suggest that if the policy makers in the industry are planning to implement KM initiatives, they should consider gender differences of the executives and the strategies should be formulated accordingly.
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