Asian Economic and Financial Review

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Online ISSN: 2222-6737
Print ISSN: 2305-2147
Total Citation: 1219

No.10

U.S.-Singapore Commodity Trade and the J-Curve


Pages: 1473-1484
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U.S.-Singapore Commodity Trade and the J-Curve

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Mohsen Bahmani-Oskooee --- Hanafiah Harvey
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Mohsen Bahmani-Oskooee --- Hanafiah Harvey (2014). U.S.-Singapore Commodity Trade and the J-Curve. Asian Economic and Financial Review, 4(10): 1473-1484. DOI:
Limited number of studies that investigated the short-run (J-Curve) and long-run effects of currency depreciation on the trade balance of Singapore either used aggregate trade data between Singapore and rest of the world or between Singapore and her major trading partners. While they were able to provide some evidence supporting short-run effects (not following the J-curve), they were unable to discover any long-run effects, especially in the trade between Singapore and the U.S. In this paper we add to the literature by disaggregating the Singapore-U.S. trade flows by commodity and consider the trade flows of 64 industries that trade between the two countries. We find short-run significant effects in 48 industries. The short-run effects last into the long run only in 24 industries. Combining the old and new definition of the J-curve, we support the concept in 27 industries. 
Contribution/ Originality

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  7. Bahmani-Oskooee, M. and A. Gelan, 2009. How stable is the demand for money in African countries. Journal of Economic Studies, 36(3): 216-235.
  8. Bahmani-Oskooee, M. and H. Harvey, 2012. The J-curve: Singapore vs her major trading partners. Economic Papers, 31(4): 515-522.
  9. Bahmani-Oskooee, M., H. Harvey and S. Hegerty, 2013. Empirical tests of the marshall-lerner condition: A literature review. Journal of Economic Studies, 40(3): 411-443.
  10. Bahmani-Oskooee, M. and S. Hegerty, 2010. The J- and S-curves: A Survey of the recent literature. Journal of Economic Studies, 37(7): 580-596.
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Malaysia’s Labour Force Participation in Rural and Urban Areas


Pages: 1461-1472
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Malaysia’s Labour Force Participation in Rural and Urban Areas

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Nor Amna A’liah Mohd Nor --- Rusmawati Said 
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Nor Amna A’liah Mohd Nor --- Rusmawati Said  (2014). Malaysia’s Labour Force Participation in Rural and Urban Areas. Asian Economic and Financial Review, 4(10): 1461-1472. DOI:
In Malaysia, transformation of economic structure from agricultural sector to manufacturing and services sector has led to urbanization process in which individual migrates from rural to urban areas for better jobs opportunity and higher wages. This inclination of movement has led to a reduction in labour absorption and expands the labour force disparities between urban and rural areas. In light of these disparities, this study used Labour Force Survey (LFS) data from Malaysia Department of Statistic to examine the determinants and changes between rural and urban labour force participation in Malaysia. The results of logistic regression models demonstrate that age group 25-34 years are the main determinant of rural and urban labour force participation. However, the probability of household in urban areas participate in labour market are higher than rural areas. Educations in urban areas are more significant compared to rural areas. A non-linear decomposition exhibits that the observed rural and urban differentials are attributable to differences in endowment (explained variables).


Contribution/ Originality
This study is one of very few studies which have investigated on the gaps occurred between rural and urban areas. Moreover, this study substantially differs from earlier studies because data is focusing on Labour Force Survey for three time periods which are 2000, 2005 and 2010.
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Cost and Profit Efficiency and Management Behaviour of Commercial Banks (Evidence from Tanzania)


Pages: 1447-1460
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Cost and Profit Efficiency and Management Behaviour of Commercial Banks (Evidence from Tanzania)

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Said Seif Mzee --- Masoud Rashid Mohamed
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Said Seif Mzee --- Masoud Rashid Mohamed (2014). Cost and Profit Efficiency and Management Behaviour of Commercial Banks (Evidence from Tanzania). Asian Economic and Financial Review, 4(10): 1447-1460. DOI:
Using non-parametric technique (the Data Envelopment Analysis - DEA) for data from 1998 to 2011, we investigate the cost and profit efficiency and management behaviour of 25 Tanzanian commercial banks. We examine the influence of ownership, bank profile, size, and corporate structure on bank efficiency. The overall results show that commercial banks in Tanzania are relatively more profit efficiency than cost efficiency. Domestic banks appear to be more cost efficient while foreign banks appear to be more profit efficient. Big banks found to be more cost and profit efficient compared with small banks, and listed banks appear to be more cost efficient than unlisted banks. On management behaviour, commercial banks are found to neither support "bad management" nor "bad luck" hypothesis.


Contribution/ Originality

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  13. Podpiera, J. and L. Weill, 2008. Bad luck or bad management? Emerging banking market experience. Journal of Financial Stability, 4(2): 135-148.
  14. Simpasa, A., 2011. Competitive conditions in the Tanzania commercial banking industry. African Development Review, 23(2): 88-98.
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Contribution of Advanced Technology and Foreign Capital to Growth of Different Stage of Development Countries


Pages: 1420-1446
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Contribution of Advanced Technology and Foreign Capital to Growth of Different Stage of Development Countries

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Paitoon Kraipornsak 
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Paitoon Kraipornsak  (2014). Contribution of Advanced Technology and Foreign Capital to Growth of Different Stage of Development Countries. Asian Economic and Financial Review, 4(10): 1420-1446. DOI:
This study determines influence of advanced technology and foreign capital on economic growth apart from contribution of the other major domestic inputs. The countries were classified into four groups; i.e., lower and lower middle income countries, upper middle income countries, non-OECD high income countries, and OECD countries. Five major factors as sources of growth in this study are domestic factors; i.e., domestic capital, labour, and human capital and supporting factors; i.e., foreign capital, and advanced technology. The long run cointegrating relation of the five major factors and its output was estimated for each group of countries. By using panel dynamic production function, most factors in the model were found significantly determining growth in all income groups. Human resources, in form of labour and human capital, were the most contributors to growth. Although all factors were found significantly contributing to growth in the OECD, at least one of the factors has not played significant role in the other three lower stages of development countries. Noticeably, both advanced technology and foreign capital were found significantly contributing to growth in all countries except for the high income Non-OECD where the advanced technology being insignificant source of growth. All five engines of growth must be put attention to play role in development of economy so that the development can be sustainable such as found all being significant factors in the case of the OECD.


Contribution/ Originality
This study has used panel dynamic model that can help demonstrate the role of country specific factor and the crucial factors determining growth in the various level of development countries. Furthermore the study incorporated into the model human capital, foreign capital and role of technology of which data are often unavailable and inconsistent across countries and over periods of time.
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The Impact of Intellectual Capital on Return of Fixed Assets and Firms Total Assets Return Which Listed On the Tehran Stock Exchange


Pages: 1409-1419
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Ali Aliyani Nezhad --- Oktay Yamrali --- Mohammad Reza Aboujafari
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Ali Aliyani Nezhad --- Oktay Yamrali --- Mohammad Reza Aboujafari (2014). The Impact of Intellectual Capital on Return of Fixed Assets and Firms Total Assets Return Which Listed On the Tehran Stock Exchange. Asian Economic and Financial Review, 4(10): 1409-1419. DOI:
Nowadays, there are a lot of differences in value of commercial corporations. Existing capitals other than physical capitals in balance sheet is the most important reason that researchers of capital market have focused on it. In this paper, hypotheses were set by using of Pulic model and were presented in the form of regression. The study was carried out in a five-year period, between the years 2008 to 2012, and data have been collected from audited financial statements of Tehran Stock Exchange. Regarding the subject of this study and limitations of information just 41 firms were chosen. The results of this research show that intellectual capital has impact on return of a firm?s total asset (financial performance) meanwhile it doesn?t have any effect on fixed asset?s return. The findings of this research are important because it claims that firm?s value doesn?t consist of just tangible assets and according to science progress the role of intangible assets in increasing firm?s value becomes much more important than tangible assets. 
Contribution/ Originality
This study contributes in the existing literature that regarding the role of human forces of firms along with their other capitals in the form of formulated compound in order to increase the total return of firms and with respect to requirements of today business world should devise more strategic policies.
  1. Abbasi, A. and A. Sedghi, 2010. Examining of efficiency effect of intellectual capital on financial performance of companies listed in Tehran stock exchange. Auditing and Accounting Investigations, 17(2): 57-74.
  2. Ahmadpur, A., A. Mallekian, M. Zare Behnamiri and Z. Nadi, 2012. Analyzing the role of board of directors structure on firms’ intellectual capital using fuzzy approach, case study of pharmaceutical companies listed in Tehran stock exchange. Accounting Knowledge Magazine, 3(8): 73-93.
  3. Ghayuri Moghadam, A., D. Mohammadi Zanjirani and Z. Nemat Allahi, 2012. Examining of intellectual capital’s effect upon efficiency as a performance criteria of a commercial unit. Journal of Financial Accounting Researches, 4(3): 87-104.
  4. Hemmati, H. and A. Mehrabi, 2011. Examining the relationship between intellectual capital and financial return of companies listed in Tehran stock exchange. Auditing and Accounting Investigations Quarterly, 3(10): 17-10.
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The Impact of Industrial Agglomeration on Firm Employment and Productivity in Guangdong Province, China


Pages: 1389-1408
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The Impact of Industrial Agglomeration on Firm Employment and Productivity in Guangdong Province, China

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Xu Zhang 
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Xu Zhang  (2014). The Impact of Industrial Agglomeration on Firm Employment and Productivity in Guangdong Province, China. Asian Economic and Financial Review, 4(10): 1389-1408. DOI:
This paper examines the impact of industrial agglomeration on productivity and firm employment in Guangdong province, China. As the firstly opened area in China, Guangdong gained most benefits from the economic reform by attracting FDI and expanding trade. Furthermore, due to its adjacency to Hong Kong, a core-periphery mechanism with significant agglomeration effects, as described in spatial economics, had been observed. By carrying out OLS empirical method and using a panel dataset containing 504 samples from 2000 to 2005 at individual firm level, we found that the manufacturing rather than the service industry is playing the most important role in Guangdong; Furthermore, bridge infrastructure, industrial specialization, and FDI significantly affect firm employment and productivity. The empirical results imply that Guangdong should strengthen its technology level for further industrial upgrading.


Contribution/ Originality
This study demonstrates the agglomeration mechanism in Guangdong China, and empirically examines impacts of agglomeration by using micro Chinese firm-level panel data.
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Independent Directors Human Capital and Firm Internationalization


Pages: 1378-1388
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Independent Directors Human Capital and Firm Internationalization

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Hsiang-Lan Che
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Hsiang-Lan Che (2014). Independent Directors Human Capital and Firm Internationalization. Asian Economic and Financial Review, 4(10): 1378-1388. DOI:
This study examines the effect of independent directors? human capital (independent directors? educational level, CEO experience and international experience) on firms? decisions toward internationalization. Using a panel of electronics firms in Taiwan, the results show that independent directors? CEO experience and international experience are positively and significantly related to firm internationalization. Independent directors? educational level is positively, but not significantly, associated with firm internationalization. Boards of directors serve two important functions for firms: monitoring managers on behalf of shareholders and providing resources. By focusing on board human capital for independent directors, this study should provide a more complete understanding of how firms? internationalization decisions are influenced by board directors who serve as monitors and resource providers. 
Contribution/ Originality
This study is one of very few studies which have investigated the effect of independent directors’ human capital on firm internationalization and thus should contribute to our understanding of how a firm’s internationalization decisions are influenced by independent directors who serving as monitors and resource providers.
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Impact of Macroeconomic Performance on Corporate Cash Holdings: Some Evidences from Jordan


Pages: 1363-1377
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Impact of Macroeconomic Performance on Corporate Cash Holdings: Some Evidences from Jordan

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Sami N. M. Abushammala --- Jamalludin Sulaiman
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Sami N. M. Abushammala --- Jamalludin Sulaiman (2014). Impact of Macroeconomic Performance on Corporate Cash Holdings: Some Evidences from Jordan. Asian Economic and Financial Review, 4(10): 1363-1377. DOI:
The paper presents empirical evidences of macroeconomic determinants of cash holdings using panel data of 65 non-financial firms listed in ASE during the period from 2000 to 2011. The results of this study find a partial significant relationship between explanatory macroeconomic variables and corporate cash holdings. The corporate cash holdings related positively with gross domestic production (GDP), and credit spread (CS) as well as government budget deficit and cash (BD).While Inflation (INF) and cash surplus/deficit (SURP) do not determine cash holdings of the firms. This paper extends the existing liquidity literature around the world by using the Fully Modified Ordinary Least Square (FMOLS) method to find out the impact of macroeconomic variables on corporate cash holdings. Also this paper extends the existing liquidity literature the Middle East and Jordan by delivering the macroeconomic variables as a determinant of cash holdings, aside from the traditional firm-specific variables. Moreover, the results of this paper are expected to help the government decision makers, investors and firms? managers to understand the effects of macroeconomic variables and to hedge against the economic risks and take the right decisions insured the ongoing good performance of the firm.
Contribution/ Originality
This study contributes in the existing literature by using the Fully Modified Ordinary Least Square (FMOLS) method to display the role of macroeconomic changes in corporate cash holdings decisions. This study is the first which have investigated the macroeconomic variables as determinants of cash holdings in the Middle East and Jordan.
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Are There Long-Term Effects on Wages When Graduating in A Bad Economy in Taiwan?


Pages: 1347-1362
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Are There Long-Term Effects on Wages When Graduating in A Bad Economy in Taiwan?

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Hsiang-Yin Liu --- Jennjou Chen
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Hsiang-Yin Liu --- Jennjou Chen (2014). Are There Long-Term Effects on Wages When Graduating in A Bad Economy in Taiwan?. Asian Economic and Financial Review, 4(10): 1347-1362. DOI:
Entering labor market during a bad economy can be intuitively connected to worse working experience at the beginning of one?s career, and moreover, the effect would persist for many years to come. We empirically estimate the long-term effect of graduating in a bad economy on wages in Taiwan. The estimation results do show significant evidences of negative long-term effect on wages. Besides, the long-term effects vary across genders and education groups.


Contribution/ Originality
The paper’s primary contribution is finding that there are significant evidences of negative long-term effect on wages of graduating in a bad economy in Taiwan. Besides, the long-term effects vary across genders and education groups.
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Security Issuance and Stock Price Effects with Heterogeneous Beliefs


Pages: 1332-1346
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Security Issuance and Stock Price Effects with Heterogeneous Beliefs

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Niu Weining --- Liu Shancun --- Jin Jing
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Niu Weining --- Liu Shancun --- Jin Jing (2014). Security Issuance and Stock Price Effects with Heterogeneous Beliefs. Asian Economic and Financial Review, 4(10): 1332-1346. DOI:
We analyze the factors that affect security issuance and its impacts on the volatility of stock returns before and after the issuance under heterogeneous beliefs and short sale constraints using the issuing sample of convertible bonds, corporate bonds and stocks in China?s security market during 2007 to 2012. The empirical tests identify that abnormal turnover can portray heterogeneous beliefs much better than dispersion in analysts? earnings forecasts. Firms? pecking order of external financing is convertible bonds, stocks and corporate bonds for the bigger firm size and higher market to book ratio. However, for those firms with higher leverage, issue amount and market volume, their optimal options are stocks, convertible bonds and then corporate bonds. The empirical results also reveal that convertible bonds issuance has a negative impact on price-earnings, but this effect diminishes in the long run. Besides, the influence of stock issuance on its return is negative only on the seasoned equity offering day. However, there is no significant effect on the yield rate in a short-term if corporate bonds are issued. Heterogeneous beliefs have a significant impact on the stock return, while negative for convertible bonds and positive for stocks and corporate bonds.
Contribution/ Originality
This study is one of very few studies which have investigated empirically on firm’s pecking order of external financing under heterogeneous beliefs, including the effects on stock returns when taking convertible bonds, corporate bonds and stocks in China’s security market into account.
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The Sustainability of Fiscal Adjustment Process : A Quantitative Approach With an Application to Tunisia


Pages: 1314-1331
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Salem Kanoun
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Salem Kanoun (2014). The Sustainability of Fiscal Adjustment Process : A Quantitative Approach With an Application to Tunisia. Asian Economic and Financial Review, 4(10): 1314-1331. DOI:
This study is a contribution to the literature concerning the sustainability of fiscal deficits in emerging economies. A novelty in this article is an attempt to check the sustainability of fiscal adjustment process monitored by fiscal authorities. Running accounting model for the fiscal disequilibrium in Tunisia over the period 1976-2010 shows sustainable thresholds of fiscal deficits and helps to quantify the related required fiscal adjustment for each year. Using bivariate cointegration test and a dynamic Error Correction Model to check the short and long run relationships between primary deficits and sustainable thresholds, this study found evidence to authorities? ability and willingness to adjust: if the primary fiscal deficit has increased above its long-run ratio, the primary fiscal deficit will decrease in the following period to restore the long run equilibrium with a high significant speed to adjust. As a guide to possible future policy actions, the realized fiscal buffers until 2010 help to withstand ?Arab Spring? Revolution crisis which started in 2011 and may provide additional support for actual expansionary fiscal policy and allow more room for manoeuvre to ensure political transition to democracy. Nowadays, Tunisia is faced with diminished policy space and after the forthcoming elections, authorities’ ability and willingness to adjust could be the strong link in the upturn in public finance disequilibrium.
Contribution/ Originality
This study is one of very few studies which have investigated the sustainability of the fiscal adjustment considered as a process. Our innovative contribution is to provide a quantitative approach, aims at analysing how do adjustment mechanisms work in a developing country, and checks authorities‟ ability and willingness to adjust.
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  8. De Mendonça, H.F. and M.R. Marcelo, 2013. Public debt management and credibility: Evidence from an emerging economy. Economic Modelling, 30(C): 10-21.
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  10. Gupta, S., E. Baldacci, B. Clements and E.R. Tiongson, 2003. What sustains fiscal consolidations in emerging market countries? IMF Working Papers No. 03-224.
  11. Hakkio, S. Craig and R. Mark, 1991. Is the budget deficit ‘too large’? Economic Inquiry, 29(3): 429–445.
  12. Hamilton, J. and M.A. Flavin, 1986. On the limitations of government borrowing: A framework for empirical testing. American Economic Review, 76(4): 808–819.
  13. Haug, A.A., 1995. Has the federal deficit policy changed in recent years? Economic Inquiry, 33(1): 104–118.
  14. International Monetary Fund, 2012. Middle East and North Africa: Historic transitions under Strain. Regional economic outlook UPDATE, Washington, D.C. (EST), April. Available from https://www.imf.org/external/pubs/ft/reo/2012/mcd/eng/pdf/mena-update0412.pdf.
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  17. Kanoun, S., 2014. The Sustainability of external adjustment process in Tunisia: Lessons for post "Arab spring" Revolution policies. Asian Economic and Financial Review, 4(2): 211-225.
  18. Kia, A., 2008. Fiscal sustainability in emerging countries: Evidence from Iran and Turkey. Journal of Policy Modeling, 30(6): 957–972.
  19. Leachman, L., B. Alan, R. Guillermo and L. Peter, 2005. Multicointegration and sustainability of fiscal practices. Economic Inquiry, 43(2): 454–466.
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  29. Van Wijnbergen, S., A. Ritu, C. Ajay and R. Roberto, 1992. External debt, fiscal policy and sustainable growth in Turkey. The international bank for reconstruction and development/ the World Bank. The Johns Hopkins University Press. pp: 173.
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The Trend Analysis of Islamization in Malaysia Using Islamization Index as Indicator


Pages: 1298-1313
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The Trend Analysis of Islamization in Malaysia Using Islamization Index as Indicator

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W. A. Wan Omar --- Fauzi Hussin --- Asan Ali G. H.
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W. A. Wan Omar --- Fauzi Hussin --- Asan Ali G. H. (2014). The Trend Analysis of Islamization in Malaysia Using Islamization Index as Indicator. Asian Economic and Financial Review, 4(10): 1298-1313. DOI:
This paper empirically analyses the trend of Islamization in Malaysia using the Islamization Index as an indicator to determine whether the time series dataset of the Islamization index possess deterministic trends or stochastic properties. The result determines the appropriateness of the employment of the Islamization index as a proxy of Islam in the empirical study of Islam and economic performance such as economic growth and development, and not as a spurious relation as in the case of the non-stationary stochastic trend. 


Contribution/ Originality
This study originates the application of Islamization index as a plausible indicator of Islam which passes all stationary and diagnostic tests as deterministic trend properties time series. The index could be employed into other Muslim majority countries to monitor Islamization process and to investigate its empirical effects on economic performance.
  1. Ahmad Sarji, A.H., 2005. Indicators of development of the Muslim Ummah in Malaysia. In M. Kamal Hassan, & Ghazali Basri (Eds.), The encyclopedia of Malaysia: Religions and beliefs. Singapore: Archipelago Press, 10.
  2. Banerjee, A., J. Dolado, J.W. Galbraith and D.F. Hendry, 2003. Co-integration, error correction and the econometric analysis of non-stationary data. Oxford, UK: Oxford University Press.
  3. Barro, R. and X. Sala-i-Martin, 1995. Economic growth. New York: McGraw-Hill.
  4. Barro, R.J. and R. McCleary, 2003. Religion and economic growth. National Bureau of Economic Research (NBER) Working Papers Series No.9682, Cambridge, USA.
  5. Blum, U. and L. Dudley, 2001. Religion and economic growth: Was weber right? Centre for Inter-University Research in Quantitative Economics (CIREQ) Working Paper No. 05-2001.
  6. Dickey, D.A. and W.A. Fuller, 1979. Distribution of the estimators for autoregressive time series with a unit root. Journal of the American Statistical Association, 74(366): 427-431.
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  11. Grier, R., 1997. The effect of religion on economic development: A cross national study of 63 former colonies. KYKLOS, 1: 47-62.
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  14. Mangeloja, E., 2005. Implications of the economics of religion to the empirical economic research. Working Paper, School of Business and Economics, University of Jyvaskyla. Available from http://gunston.doit.gmu.edu/../REC04 [Accessed Jul, 2009].
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  17. Rehman, S.S. and H. Askari, 2010. An economic islamicity index (EII). Global Economy Journal, 10(3): 1-37.

The Patterns and Determinants of Agricultural Credit Use among Farm Households in Oyo State, Nigeria


Pages: 1290-1297
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The Patterns and Determinants of Agricultural Credit Use among Farm Households in Oyo State, Nigeria

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O. A. Adekoy
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O. A. Adekoy (2014). The Patterns and Determinants of Agricultural Credit Use among Farm Households in Oyo State, Nigeria. Asian Economic and Financial Review, 4(10): 1290-1297. DOI:
The study examined the patterns and determinants of agricultural credit use among farming households in Oyo State, Nigeria. The primary data used for the study were obtained from a cross sectional survey of 114 farm households drawn by multi-stage random sampling technique. Both descriptive statistics and multiple regressions were used to analyze the data obtained. The study revealed that 47.4% of farm households in the State were in the age bracket of 51-60 years with mean age of 58 years while majority (86.8%) were farmers. Also, 48.2% had no formal education and 22.8% had between 7-12 years of formal education. Over half of the farm households (58%) maintained a household size of 5 ? 8 with mean size of five while 27.2% and 26.3% had between 11-20 years and 21-30 years of farming experience. In addition, 52% of the respondents in the State patronized the cooperative societies with mean loan requested as ₦108,157.89, mean loan released as ₦97,763.15 and mean loan repaid being ₦70,898.24. The major constraints faced by the rural farm households in accessing loans include high interest rate (21.9%) and lack of collateral (14.9%). Farm size (p<0.01), membership of a social organization (p<0.01), number of adult males in households (p<0.01) and off farm income (p<0.05) had positive significant influence on the amount of credit the household can secure. The adjusted R2 of 60.7% indicates that 60.7% of the variations in the amount of credit/loan obtained were explained by the specified variables in the model. The study recommends that government should organize, strengthen and harmonize the activities of the various cooperative societies with the aim of making them more effective in microcredit utilization.
Contribution/ Originality
The study is one of very few studies which have investigated the pattern of use of credit among farm households in Oyo State, Nigeria for purposes of farming and non-farming activities as well as identifying factors having significant influence on the amount of credit the farmers can access in their locality.
  1. Adeyemi, K.S., 2008. Institutional reforms for efficient microfinance operations in Nigeria. Central Bank of Nigeria Bullion, 32(1): 26-34.
  2. Aihonsu, S.O., 2001. Bank loan default by small scale farmers in Ogun State, Nigeria. The Ogun Journal of Agricultural Science, 15(1): 11-20.
  3. Attah, A.A., 2008. Banks contribution to agricultural development. The Nigerian Microfinance Newsletter, 6(2): 16-19.
  4. Carter, M.R. and K.D. Wiebe, 1990. Access to capital and its impact on agraria structure and productivity in Kenya. American Journal of Agricultural Economics, 72(5): 1146-1150.
  5. Hazarika, G. and J. Alwangi, 2003. Access to credit plot size and costi inefficiency among smallholder tobacco cultivators in Malawi. Agricultural Economics, 29(2): 99-109.
  6. National Bureau of Statistics, 2006. Census figure by States and local fovernment areas, Nigeria. Available from www.nbs.ng.gov [Accessed July, 2013].
  7. Odu, P.C., 1996. Problem and prospects in agricultural financing in Nigeria under economic deregulation. Central Bank of Nigeria Bulletin, 20(3): 31-48.

An Exploration on the Business Model of Social Enterprises Owned By Chinese Entrepreneurs in Taiwan


Pages: 1275-1289
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An Exploration on the Business Model of Social Enterprises Owned By Chinese Entrepreneurs in Taiwan

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Yen Shang-Yung --- Fan Song-Ching
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Yen Shang-Yung --- Fan Song-Ching (2014). An Exploration on the Business Model of Social Enterprises Owned By Chinese Entrepreneurs in Taiwan. Asian Economic and Financial Review, 4(10): 1275-1289. DOI:
This study aims to explore the business models of the social enterprises owned by Chinese entrepreneurs and tries to construct a business model. In order to overcome the shortcomings of a lack of objective verification in the qualitative study, for example, whether or not there is significance for the variables, and whether or not there is consistent reliability and validity of the sample, this study adopts a new qualitative study method fuzzy set qualitative comparative analysis, (fs / QCA) to conduct empirical study. The research conclusions further support the design of the model elements of the social enterprises run by Chinese entrepreneurs, we suggest that three elements (guanxi, social value proposition, and social and environmental benefits) be considered for exploration to fully explore the 10 necessary business model elements.  The preliminary exploration results verify that fs / QCA could assist researchers in finding out the causal correlation among variables, determine whether or not there are necessary conditions or sufficiency conditions and have a more objective analysis tool to interpret the causal correlation of small samples. It is also another approach for social science study to complete the gap in research methods between quantitative and qualitative research.
Contribution/ Originality
This study adopts fs/QCA to conduct an exploration of the business model of Chinese social enterprises, fs/QCA assists researchers to simply visualize the way to interpret the results for small scale samples, thereby assisting researchers to find a relatively effectively path in the analysis of complicated causal correlations.
  1. Anderson, A.R. and E.Y.C. Lee, 2008. From tradition to modern: Attitudes and applications of < IT> guanxi </IT> in Chinese entrepreneurship. Journal of Small Business and Enterprise Development, 15(4): 775-787. DOI 10.1108/17542411011026302.
  2. Ardichvili, A., R. Cardozo and S. Ray, 2003. A theory of entrepreneurial opportunity identification and development. Journal of Business Venturing, 18(1): 105-123. Available from http://dx.doi.org/10.1016/S0883-9026(01)00068-4.
  3. Arend, R.J., 2013. The business model: Present and future—beyond a skeumorph. Strategic Organization, 11(4): 390-402. DOI 10.1177/1476127013499636.
  4. Au, K. and H.K. Kwan, 2009. Start?up capital and Chinese entrepreneurs: The role of family. Entrepreneurship Theory and Practice, 33(4): 889-908. DOI 10.1111/j.1540-6520.2009.00331.x.
  5. Battistella, C., G. Biotto and A.F. De Toni, 2012. From design driven innovation to meaning strategy. Management Decision, 50(4): 718-743. DOI 10.1108/00251741211220390.
  6. Chen, C.-S. and Y.H. Wu, 2004. Entrepreneurship and entrepreneur characteristics in Chinese society. Taiwan: Research Creativity Award from the National Science Council.
  7. Dees, J.G., 2001. The meaning of social entrepreneurship. Duke University: Center for the Advancement of Social Entrepreneurship, Fuqua School of Business.
  8. Grassl, W., 2012. Business models of social enterprise: A design approach to hybridity. ACRN Journal of Social Entrepreneurship Perspectives, 1(1): 37-60.
  9. Hu, J.S., C.Y. Cheung and H.Y. Wong, 2012. The relations of social entrepreneurship models and resources integration in social enterprise. Journal of Entrepreneurship Research, 7(1): 1-26.
  10. Kristiansen, S., 2004. Social networks and business success. American Journal of Economics and Sociology, 63(5): 1149-1171. DOI 10.1111/j.1536-7150.2004.00339.x.
  11. Mair, J. and I. Marti, 2006. Social entrepreneurship research: A source of explanation, prediction, and delight. Journal of World Business, 41(1): 36-44. Available from http://dx.doi.org/10.1016/j.jwb.2005.09.002.
  12. Moizer, J. and P. Tracey, 2010. Strategy making in social enterprise: The role of resource allocation and its effects on organizational sustainability. Systems Research and Behavioral Science, 27(3): 252-266. DOI 10.1002/sres.1006.
  13. Osterwalder, A. and Y. Pigneur, 2010. Business model generation: A handbook for visionaries, game changers, and challengers: John Wiley & Sons. ISBN978-986-6613-53-1.
  14. Poon, P.S., Z. Lianxi and T.S. Chan, 2009. Social entrepreneurship in a transitional economy: A critical assessment of rural Chinese entrepreneurial firms. Journal of Management Development, 28(2): 94-109. DOI 10.1108/02621710910932061.
  15. Ragin, C.C., 2008. Redesigning social inquiry: Fuzzy sets and beyond. Chicago: University of Chicago Press.
  16. Reiser, D.B., 2013. Theorizing forms for social enterprise. Emory L.J, 62: 681-1205.
  17. Rihoux, B., P. Álamos-Concha, D. Bol, A. Marx and I. Rezsöhazy, 2013. From niche to mainstream method? A comprehensive mapping of QCA applications in journal articles from 1984 to 2011. Political Research Quarterly, 66(1): 175-184. DOI 10.1177/1065912912468269c.
  18. Talavera, O., L. Xiong and X. Xiong, 2012. Social capital and access to bank financing: The case of chinese entrepreneurs. Emerging Markets Finance and Trade, 48(1): 55-69. DOI 10.2753/REE1540-496X480103.
  19. Yunus, M., B. Moingeon and L. Lehmann-Ortega, 2010. Building social business models: Lessons from the grameen experience. Long Range Planning, 43(2): 308-325. Available from http://dx.doi.org/10.1016/j.lrp.2009.12.005.
  20. Zahra, S.A., E. Gedajlovic, D.O. Neubaum and J.M. Shulman, 2009. A typology of social entrepreneurs: Motives, search process and ethical challenges. Journal of Business Venturing, 24: 519-532. Available from http://dx.doi.org/10.1016/j.jbusvent.2008.04.007.

Financial Analysis of Waqf Real Estate Revenues in the West Bank: 1994-2014


Pages: 1260-1274
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Anwar H. M. Musaee --- Eeman Muhammad Abbas --- Wan Kamal Mujani --- Roziah Sidik @ Mat Sidek
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Anwar H. M. Musaee --- Eeman Muhammad Abbas --- Wan Kamal Mujani --- Roziah Sidik @ Mat Sidek (2014). Financial Analysis of Waqf Real Estate Revenues in the West Bank: 1994-2014. Asian Economic and Financial Review, 4(10): 1260-1274. DOI:
This paper  made a financial analysis of the revenues of the Palestinian Ministry of Waqf ( endowment ) and specifically its real estate revenues in the West Bank. It was found that 61% of the waqf ministry’s total revenues were from real estate. This clearly shows the importance of waqf real estate rentals in the ministry’s annual budget. The importance of this study springs from its dependence on primary sources: Palestinian Ministry of Waqf?s financial records, and  its West Bank directorates ’ 2,108 files related to real estate leasing. This was in addition to personal interviews with waqf ministry officials and experts from outside the ministry. In order to achieve the purpose of this study ( finding out the factors impeding the development / investment of the ministry’s real estate low revenues), the researcher computed the collected data of the leased waqf real estate using the descriptive analytical method. After data analysis, it was found that the West Bank was home to a large number of leased waqf real estate but its revenues were low compared to its size and locations. It was also found that the ministry had a big problem in collecting rentals from the tenants. In 2013, the ministry only managed to collect 1,264,372 Jordanian dinars, though the actual value of  dues was JD 4,599,631. In other words, the ministry managed to collect 27% of all dues. The rest remained debts and revolving balance on the tenants. This situation was due to the waqf real estate leasing mechanism pattern of contracts regulating them,  the legal extension of leasing contracts, freezing of rental charges, low collections, accumulation of debts on tenants, and  legal legislations.
Contribution/ Originality
This study is expected to increase interest in and knowledge of the reality of waqf holdings in Palestine and the problems facing the Palestinian Ministry of Waqf in making optimal use of these holdings. Unlike other studies, this study solely depended on primary sources and provided the first up-to-date logical analysis of data about size of waqf estate and revenues.
  1. Abdelrahim, M., 2003. Al-Waqf: Mafhomo, mashroo'iyato, anwa'u, hukmo andshorooto ( Endowment: Concept, Legitimacy, Types, Legality and Conditions ). Paper Presented at First Waqf Conference, Umm Al-Qura University and Ministry of Islamic Affairs, Waqf, Call and Guidance, Mecca, 1, pp: 196.
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