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This paper examines the effect of financial stability on the economic growth of countries in Sub-Saharan Africa using the World Development Indicators Data. To select the appropriate model best fits for the data, the Hausman test was used to select Random Effect Estimator over Fixed Effect Estimator to assess the relationship between the variables. Panel data was collected on Sub-Saharan Africa countries from 2010 to 2019 to predict the effect of financial stability on economic growth. The paper revealed that financial stability accounted for 71.8% of the variation of a country's economic growth for the period other things being equal. It recommends that financial regulators within Sub-Saharan African should provide prudential policies aim at attaining higher economic growth should target both monetary and fiscal policies as well market discipline. Keywords: Sub-Saharan African, economic growth, financial stability, panel data, Fixed effects estimator JEL Classifications: E50, E58, F43, O47 DOI: https://doi.org/10.32479/ijefi.11407

Endogenous economic growth theories have pointed to private investment as one of the determinants of long run, sustainable economic growth; a well-studied relationship in the development economics literature, both theoretically and empirically. One of the main reasons the Kuwaiti economy has not achieved its aspired degree of economic diversification over decades, is the relatively low level of private investment, which has eventuated in a relatively small private sector, partly due to an unimproved investment ecosystem. Like other economies, investment in Kuwait is a robust growth driver especially as a policy tool to achieve a digital, knowledge-based economy that leapfrogs on innovative technological investments, as ambitiously strategized by the Kuwait Vision 2035. The eruption of the coronavirus pandemic and the deep recession it triggered is likely to become a major hurdle in the way of spurring sufficient quality investments. With contracted GDP and collapsed oil prices, export and fiscal revenues shrink substantially, reducing investment activity and hence negatively affecting investment. This paper focuses on the role of private investment as a function of sustainable economic growth. Specifically, this paper aims to delineate the relationship between investment and economic growth in Kuwait by outlining; the determinants and impediments of investment, investment trends and behavior, innovative models of investment in Kuwait and applying a set of seven simulation-based scenarios of investment modelled as autoregressive distributed lags. By so doing, the paper elucidates the impact of critical variables including; non-oil GDP growth, interest rates management, attracting and fostering FDI inflows, as well as the recession plagued fiscal and trade balances, in order to estimate the magnitude and time-path of key policy variables on investment. The findings illustrate the rigidity of investment when recession drags GDP, FDI, exports and trade balances as well as fiscal revenues. Keywords: Oil Surplus Economy, Kuwait Vision 2035, Diversification, Coronavirus, Simulation, Autoregressive Lag Mode JEL Classifications: C1, C15, F, F01 DOI: https://doi.org/10.32479/ijefi.11513

Pricing decision is the most important decision made by food manufacturers. Although products are offered at regular prices most of the time, they are periodically offered at discounted prices to boost sales. In a differentiated product market, how brands respond to each other’s price change is not addressed very often empirically. This paper studies a strategic price response to perceive how brands response to each other’s prices in the U.S. differentiated yogurt market. This paper also estimates the frequency of price promotion to answer the question of whether private labels go on price promotion less or more frequently than main national brands. Vector autoregressive estimates suggest that the price pattern of yogurt brands is systematic and there is a strategic decision in setting prices. Granger-causality test shows that both Yoplait and private labels alter prices of other brands by having a significant impact on their pricing decision. Results of the impulse response functions confirm that Yoplait with the highest market share is the price leader in the yogurt market where all brands respond significantly to Yoplait’s price shock up to five weeks following an impulse. The Markov-switching regression shows that private labels go on price promotion as frequently as national brands.Keywords: yogurt; strategic price; Granger-causality; impulse response; Markov-switchingJEL Classifications: C32, C33, D22, L11DOI: https://doi.org/10.32479/ijefi.8708

The need to query large volumes of heterogeneous data in differing formats from multiple sources, both internal and external and its centrality to the process of value creation is revolutionising traditional approaches to business models. Through the adoption of more sophisticated algorithms, it is possible to intercept and interpret any digital flow, particularly those coming from the Internet of Things or from the web. The vast amount of information, its governance and its global integration are used in all decision-making processes and they are, therefore, an element of strategic importance in the development process and in the survival of every company, thanks to the potential for transforming all information sources into knowledge and quantifying reality in all its elements (objects, places, phenomena, people and human behaviour). Having a large volume and a wide variety of information (i.e. Big Data) shared within an organisation is crucial for the interactive and multidirectional process of risk assessment and management. This process, on the one hand, contributes to safeguarding the integrity of corporate assets through increased efficiency and the effectiveness of the services provided and, on the other, reduces unexpected events and related losses while ensuring greater efficiency in the decision-making process. This is relevant especially in financial institutions in which risk management is pivotal to their survival and their success, assuming a strategic role. Through an analysis of the literature and a case study methodology, this paper investigates how small banks are facing technological challenges, showing the state of art about the actual use of the techniques of data collection and management (e.g. Big Data analytics) in supporting the risk management process. Furthermore, the work tries to identify the skills required of the risk manager in the digital age. The paper contributes to the ongoing debate on the usefulness and use of digital innovations in the banking sector, discussing the future perspectives of risk management 4.0 and the role of Big Data analytics in risk management.Keywords: Big Data Analytics, Business Intelligence, Risk Management, Decision Making, Case study, BanksJEL Classifications: O3, G2, M1DOI: https://doi.org/10.32479/ijefi.8556

According to characteristics of revenue and risks involved in film investments, this paper expounds that movies can also be treated as a common tradable asset in capital markets. Consequently, this study employs the famous Arbitrage Pricing Theory (APT) from Capital Asset Pricing Model as a necessary and efficient theoretical explanation, in order to describe the application of multi-factor linear regression model used in assessing movie investment returns in real life. Above that, the paper not only uses Linear Regression with Multiple Variables and its theory by Litman and Kohl (1989) for reference, but also build a model for explanation and prediction about Chinese movie box office combined with the research experience in predicting movie box office at home and abroad. 219 movies released in Mainland China from 2008 to 2017 were selected as samples for empirical testing and analysis. According to the empirical model, this study predicted the 4 movies released in 2018, satisfactory outcomes were obtained.Keywords: Movie Box Office, Prediction Model, Arbitrage Pricing Theory, Empirical AnalysisJEL Classifications: C1DOI: https://doi.org/10.32479/ijefi.8383

The private sector plays a pivotal role in social economic development. A thriving business environment creates employment and generates returns that can be re-invested both domestically and internationally. Unfortunately, there has been scanty scholarly exploration on how improvements in doing business environment affect foreign direct investments. For that reason, this paper intended to establish how improvements in doing business environment affect the flow of foreign direct investments into the eastern Africa region. The study used panel data, maintained by the World Bank from 12 eastern Africa countries for the period 2004 through 2017. The World Bank has profiled 11 parameters to define doing business environment, namely; doing business, starting a business, dealing with construction permits, getting electricity, registering property and getting credit. Others include, protecting minority investors, paying taxes, trading across borders, enforcing contracts and resolving insolvency. GDP per capita, trade openness and Labour Force controlled the relationship between ease of doing business and FDI. Using OLS regression on Pooled data, the paper established a significant influence of ease of doing business variables on FDI. Therefore, the paper concluded that FDI follows the size and quality of the market and production efficiency. Then, the paper advises governments to enact adequate regulations that support the development of the private sector.Keywords: Foreign Direct Investments, Ease of Doing Business, Starting a BusinessJEL Classifications: C33, F21, F23, O11DOI: https://doi.org/10.32479/ijefi.8153

The paper provides a comparative review and analysis between the approaches of poverty and extreme-poverty solutions, emerging in literature and from Inspiration Economy Project Poverty Labs (IEP-PLs); carried over three years. The paper focuses on the differentiation that current ‘extreme poverty’ elimination requires. Notably, the models were evaluated about the changes from different perspectives that influence directly or indirectly the quality of life of the poor, or proactively keep him away from the poverty line. More diagnosis of the challenges on how to deal with poverty mechanisms and constructs were reflected in different proposed approaches, as part of the paper discussion. The implications of the paper emphasis on future structural factors and especially with the emerging work of behavioural economics and inspiration labs. The recommendations are drawn based on the new different approaches shown to be of influence on the ‘extreme poverty’ policies and their ways of empowerment.Keywords: Extreme-Poverty, Models for Poverty Elimination, Poverty AlleviationJEL Classification: D6DOI: https://doi.org/10.32479/ijefi.8053

This paper explores the value concept that is important in determining the relationship between demand and supply, and resource allocation in the economy. From value creation perspective, the value concept is redefined to explain value creation and value distribution in the economy. Based on this value concept, the value added method is used for gross domestic product (GDP) measurement that is also used as the objective function in the general equilibrium model. The starting point in general equilibrium modeling is the understanding on the structure and the flows of the economy, in which the general equilibrium mechanism relies on market equilibriums and macro balances. The simulation experiment is used to conduct economic policies from the changes in target sector structure and the combinations of macro closures in the hypothetical economy. The paper contributes a conceptual framework in general equilibrium modeling for economic policy analysis as a good start to understand the more complex general equilibrium models.Keywords: value concept, market equilibrium, general equilibrium, policy analysis, economic growthJEL Classifications: C60; D46; D58; O20DOI: https://doi.org/10.32479/ijefi.8164

This paper aims to analyze the factors affecting domestic value added in exports for seven Latin American countries (LAC) with a focus on the role played by foreign inputs. By using panel data (1995-2016) with fixed effects model, the paper finds that foreign value added (FVA) in exports is a strong determinant of positive changes in domestic value added exports in Latin America. The paper also finds that institutions, tariffs and labor productivity are important determinants of changes in DVA in exports. Additionally, a sectoral analysis reveals the positive effect of FVA in exports on changes in DVA in exports in three sectors: agriculture, manufacture and services. However, FVA in exports has no significant effect on DVA in exports in the mining sector. Overall, our results suggest countries to lower tariffs, to adopt policies that enhance the import of sophisticated intermediates inputs and to promote favorable business environment.Keywords: Value Added Exports, Global Value Chains, Latin America.JEL Classifications: F13, F14, N16, P33DOI: https://doi.org/10.32479/ijefi.8059

The paper aims to provide new evidence about the relationship between technological innovation and industrial export in China. In particular, using a unique industry-level data on a panel of China’s 27 two-digit manufacturing industries over the 1998-2010 period, the study empirically investigates the impact of various aspects of technological innovation on export performance of large- and medium-sized industrial enterprises (LMEs). The results based on a system-GMM estimation report that: First, domestic innovation efforts and foreign investment have a significant positive impact on China’s industrial export performance, whereas the former has a relatively stronger influence on export success than the later; Second, the export growth has benefitted greatly from China’s integration into world trade and the effect of trade openness on export boom is greater than both the domestic and foreign innovation efforts. Further, a recent increase in the scientific and technological development staff has initiated the learning process in LMEs and has put a favourable impact on industrial export. Last, market reforms in china have played a crucial role in manufactured export development through improvement in separate ownership and creation of competitive market. These results are robust to several tests, sensitivity checks and alternative variables on diverse channels for technological innovation. Findings of the paper suggest some policy points for designing China’s new development strategy in an era of sluggish growth. Keywords: Technological innovation, Foreign investment, Indigenous innovation, Market-oriented reforms, Industrial export, ChinaJEL Classifications: F14, F23, O14, O31, O32DOI: https://doi.org/10.32479/ijefi.7942

This paper estimates taxable capacity, tax effort and tax burden with a view to examining the tax fairness perceptions and tax system efficiency. The study employed ordinary least squares (OLS) regression and vector autoregressive (VAR) model for historical time series data sourced from the World Development Indicators (WDI) and Bank of Ghana (BoG). We found that Ghana’s overall tax burden and average post-tax reform efforts are low suggesting tax fairness and tax system inefficiency respectively. We conclude that post-tax reform dispensation has not generated the much-needed tax revenues because of low tax efforts. Thus, tax revenue could be significantly maximized to aid the achievement of the sustainable development goals (SDGs) to move Ghana Beyond Aid. This paper extends literature by relying on estimates of taxable capacity, tax effort and tax burden to assess the tax fairness perceptions and tax administrative efficiency of an emerging economy. We posit that these triad terminologies move pari passu in assessing the efficiency and fairness of a country’s tax system. We recommend that embarking on jurisdictional tax reforms should not only be about appropriate and a plethora of tax laws and multiplicity of taxes but also on the efficiency and integrity of tax administration. The judicious use and prompt accountability of tax revenues could help address tax unfairness perceptions in emerging economies.Keywords: Taxable capacity, tax effort, tax burden, fairness, Ghana, tax revenueJEL Classifications: H2, Q2, Q3DOI: https://doi.org/10.32479/ijefi.7549

This paper aims to investigate the impact of behavioral biases and financial literacy on investment performance in an emerging stock market context. Based on data collected from a sample of 196 Moroccan investors operating in Casablanca stock exchange, we test the research hypotheses using structural equation modeling. Out of the four heuristics examined in our proposed conceptual framework (i.e. overconfidence, representativeness, anchoring and herding), only overconfidence and representativeness had a significant positive impact on financial performance. Our results also suggest a significant positive impact of financial literacy on representativeness, while it was found negatively associated with overconfidence. This research paper is the first of its kind to investigate the existence of heuristics in an African, Arab and emerging market. As well, the current study is among the earliest attempts to examine how behavioral biases relate to investors performance. Keywords: Heuristics; financial literacy; investment performance; stock market; SEM. JEL Classification: G02. DOI: https://doi.org/10.32479/ijefi.11318

Despite the efforts of various federal and regional governments over the years, poverty still exists in several places across the world, especially in the developing countries. Microfinance services have been promoted as viable tools to decrease poverty. Sarawak, Malaysia is an example of a region where microfinance services are being used to reduce the incidences of poverty. This paper proposes a conceptual model to understand the effect of different microfinance services on poverty reduction efforts in Sarawak, Malaysia. This paper is further expanded into research hypotheses for subsequent papers on the nexus. The model will serve as a valuable guide for approaches on using microfinance services in reducing poverty. Keywords: Microfinance services; Poverty reduction; Sarawak; Malaysia JEL Classifications: G10; G20 DOI: https://doi.org/10.32479/ijefi.11258

The purpose of this paper is to investigate the relationship between leverage and its main determinants in the Argentine context, using the trade-off theory and the pecking order theory. Studies that have addressed this issue in emerging economies are still quite rare and the results are incomplete and controversial. To identify the companies to be analyzed, we used a stratified sampling methodology, following an economic criterion. The balance sheet data were collected through a questionnaire and were normalized to neutralize the effects of high inflation. The period analyzed is 3 years and concerns 181 companies. The research hypotheses were tested using a static fixed effects (FE) model. The results of this paper contribute to the existing literature, providing further empirical evidence on the financial behaviour of firms in an as yet unexplored economic context. Furthermore, empirical findings can be useful for Argentine entrepreneurs and managers of companies to improve their financial decisions. Keywords: Capital structure, Leverage, Profitability, Business Risk, Emerging Markets JEL Classifications: G32, M16, M21 DOI: https://doi.org/10.32479/ijefi.10997

This paper examined the research landscape on the applications of machine learning in finance (MLF) research based on the published documents on the topic indexed in the Scopus database from 2007 to 2021. Consequently, the publication trends on the published documents data were examined to determine the most prolific authors, institutions, countries, and funding bodies on the topic. Next, bibliometric analysis (BA) was employed to analyse and map co-authorship networks, keywords occurrences, and citations. Lastly, a systematic literature review was carried out to examine the scientific and technological developments in the field. The results showed that the number of published documents on MLF research has soared tremendously from 5 to 398 between 2007 and 2021, which signifies an enormous increase (~7,900%) in the subject area. The high productivity is partly ascribed to the research activities of the most research-active academic stakeholders namely Chihfong Tsai (National Central University in Taiwan) and Stanford University (United States). However, the National Natural Science Foundation of China (NSFC) is the most active funder in the United States and has the largest number of published documents. BA analysis revealed high collaboration rates, published documents, and citations among the stakeholders. Keywords occurrence analysis revealed that MLF research is a highly inter- and multidisciplinary area with numerous hotspots and themes ranging from systems, algorithms and techniques to the security and crime prevention in Finance using ML. Citation analysis, the most prominent (and by extension the most prestigious) source titles on MLF are IEEE Access, Expert Systems with Applications and ACM International Conference Proceedings Series (ACM-ICPS). The systematic literature review revealed the various areas and applications of MLF research, particularly in the areas of predictive/forecasting analytics, credit assessment and management, as well as supply chain, carbon trading, neural networks, and artificial intelligence, among others. It is expected that MLF research activities and their impact on the wider global society will continue to increase in the coming years

This study examines the evolution of sustainability accounting in the sector, emphasizing a shift from environmental management to more detailed strategies focusing on environmental preservation, integrating policies and engaging stakeholders. It delves into how policies with public sector activities provide insights into common approaches for measuring and reporting sustainability. By using a combination of bibliometric and thematic analysis, this research analyzes a collection of peer-reviewed papers to identify trends and evolving topics using both quantitative and qualitative methods. The findings indicate a move towards sustainability initiatives, emphasising incorporating technological advancements to enhance sustainability measurement and reporting. Key themes like policy and governance sustainability reporting and the strategic use of technology highlight a trend towards data-driven policymaking and the crucial role of sustainable procurement in the public sector. While comprehensive, the study acknowledges limitations related to database selection and potential publication biases. It emphasizes the importance of research to address gaps and calls, for aligning sustainability reporting standards. This research adds to discussions by providing an overview of sustainability accounting practices within the public sector. It compiles a range of research to offer a comprehension of the subject, setting the stage for upcoming studies and highlighting its importance in academic exploration and real-world use.

This paper explored the factors that impact the sustainability and growth of small and medium-sized manufacturing enterprises in Botswana. A self-administered structured questionnaire was used to survey 348 owners/managers of small and medium-sized manufacturing enterprises (SMEs) in the South Eastern District of Botswana. Descriptive and inferential statistics were generated from the gathered data using the Statistical Package for Social Sciences (IBM SPSS Version 27.0). findings revealed that entrepreneurial factors, firm-specific factors and exogenous factors impacted the growth and sustainability of manufacturing firms in Botswana. In addition, government policies and guidelines, innovation and creativity, human capital development, access to finance, financial management skills and managerial skills were also confirmed as significantly contributing to the growth and sustainability of manufacturing small and medium-sized enterprises in Botswana. Key recommendations derived from these findings include the need for policymakers in the government of Botswana and private sector partners to upskill owners/managers of manufacturing enterprises on business planning, financial management, financial literacy, quality management, and market research skills. Furthermore, efforts should be accelerated to promote products manufactured in Botswana to regional and global markets.

This article introduces a systematic approach for developing a targeted comprehensive program aimed at enhancing the rural labor market (TCPDRLM) in labor-surplus regions of the Republic of Uzbekistan, within a socially oriented market economy. The paper outlines key interconnected principles for the development of TCPDRLM, including target orientation, complexity, integration, specificity, variability, realism, optimality, priority, delineation of powers and functions, limitations, targeting, controllability, and interconnectedness. Based on these principles, the article proposes interrelated sections for the program’s development, covering analytical and problematic aspects, target delineation, scientific and methodological frameworks, information management, modeling, software development, resource allocation, organizational and economic structuring, summary formulation, and legal considerations. Additionally, the article details the primary stages of TCPDRLM development, including setting objectives for the rural labor market (RLM), developing methodological and modeling frameworks for RLM analysis and forecasting, collecting statistical, marketing, and sociological data, compiling the TCPDRLM subprograms, obtaining approval for the RLM development program, and establishing organizational, economic, and legal mechanisms for program implementation and adjustment. The article's scientific contribution lies in the formulated methodology for TCPDRLM development in the rural labor market.

Due to the COVID pandemic, the stock market has been affected adversely around the globe and investment decisions are now more challenging and riskier. Hence, in this paper, we aim to investigate the impact of oil prices on the Indian stock market and eight sectoral indices for the period of pre, post, and during the COVID pandemic. The maximal overlap discrete wavelet transform (MODWT) is used to decompose and to denoise the original time series data as oil price and market return are found to be noisy. We employ the wavelet-based Granger causality (WGC) and non-linear, autoregressive distributed lag model (NARDL) to investigate the causality in the frequency domain as well as the short-run and long-run asymmetry of oil price impact. Our analysis shows a feedback relation between low frequency (higher investment horizon) and the long-run asymmetric impact of oil prices on all sectors during all three periods. We discuss the dynamic time-varying relationship between the oil price and sectoral return along with the investment implications in detail.

This study critically examines the nexus between tax legislation and digital innovation in Ukraine, focusing on the alignment of fiscal policy with the digital economy's growth. It analyzes the implications of Ukraine's tax reforms, including the Law "On Stimulating the Development of the Digital Economy in Ukraine," commonly referred to as the Diia City initiative, for promoting a robust digital economy. This research evaluates the effectiveness of these reforms in fostering digital advancements and their impact on sustainable economic development. Employing a comprehensive multidisciplinary approach, it researches into the theoretical and practical aspects of tax policies, particularly those targeting the digital sector. The findings suggest Ukraine's strategic positioning for leveraging digital innovation, underpinned by legislative reforms such as amendments to the Tax Code of Ukraine that cater to the IT industry through specific tax regulations through a conducive fiscal environment. This paper highlights the transformative potential of digital innovations and the critical need for tax legislation to evolve in tandem with technological advancements. Recommendations for ensuring the sustained success of Ukraine's digital and economic reform efforts emphasize the importance of addressing existing obstacles and perpetually refining fiscal policies.

Global research has shown that different risk management practices in banks and companies, in general, may significantly influence their profitability. This research paper investigates the impact of credit risk, liquidity risk and market risk in the banking sector in South Africa. It adds to the literature by improving the existing models and by exploring the impact of the coronavirus on the profitability of the same banks through the lens of risk management. The research used quantitative data collected from the six largest commercial banks in South Africa during the period (2013-2020),before Covid-19. Several panel regression models were developed to incorporate credit, liquidity, and market risks. The results showed that the primary determinant of bank profitability was the management of non-performing loans, implying that other financial risks may already be appropriately managed or diversified away in the South African context. However, banks and regulators should place more importance on evaluating the creditworthiness of their current and prospective customers.

This paper examines the potential effects of Brexit on income inequality in the United Kingdom (UK) and utilizes empirical methods to predict these effects. The study focuses on the impact of trade and Foreign Direct Investment (FDI) on income inequality, using macroeconomic data from 1971 to 2019. By employing cointegration techniques and an Error Correction Model (ECM) on annual time series data, the analysis reveals that higher levels of trade have historically reduced income inequality in the UK over the long term. Consequently, changes in trade resulting from Brexit are expected to have a negative influence on the distribution of income and wealth in the UK. On the other hand, the study finds that higher FDI has only had a short-term negative effect on income distribution in the UK.

Low levels of financial literacy continue to persist around the world with women, the poor, lowly educated groups and the youth possessing the least levels of financial literacy. Research has shown that both financial education and financial experience can help boost levels of financial literacy. Despite this, there remains no conceptual framework that shows how financial education and financial experience can be used to boost levels of financial literacy. The purpose of this study is to propose a conceptual framework that links financial literacy, financial education, and financial experience. This paper is based on a literature review of journals on financial literacy, financial education, and financial experience that were published on both Google Scholar, Semantic Scholar, and Scopus from 2018 to 2023. Variables that emerged from the literature review were used to construct a conceptual framework. The findings of this study reveal that financial education and financial experience can be used to enhance financial literacy levels. Thus, it can be concluded that both financial education and financial experience can help to improve levels of financial literacy among individuals and various groups.

This paper examines the effects of coronavirus disease 2019 (COVID-19) pandemic outbreak on the Cypriot Stock Exchange (CSE), which has encountered substantial turmoil. For this purpose, daily stock market returns were used over the period of September 3, 2019 - July 10, 2020, for the Cypriot economy. The study applied Granger causality models to explore whether the CSE is impacted by the crisis generated by novel coronavirus. Hsiao’s approach to Granger causality was employed to investigate the causalities among COVID-19 and stock market returns, as well as between pandemic measures and several commodities. The analyses uncover intricate dynamics and contributing factors, shedding light on the observed volatility. The findings demonstrate significant volatility throughout the pandemic, with notable shifts in market conditions. Nevertheless, the stock market showcased resilience and recovery during the initial shutdown period. These insights contribute to understanding the pandemic’s impact on the CSE, offering crucial guidance for investors, policymakers, and market participants.

This paper, first, obtained three categories of efficiencies, overall bias-corrected technical efficiency (OTEBC), bias-corrected pure technical efficiency (PTEBC) and bias-corrected scale efficiency (SE) of the Islamic banks of the Gulf Cooperating Countries (GCC) during 2014-216 using the bootstrap Data envelopment Analysis(DEA). Second, decomposing the overall bias-corrected technical efficiency (OTEBC) the paper found the bias-corrected pure technical efficiency (PTEBC) and the bias-corrected scale efficiency (SE) were 91 percent and 59.8 percent respectively and thus PTEBC dominated the OTBBC (82.4 percent) and the SE (59.8 percent) of the GCC Islamic banks. Third, the paper found the sources of the inefficiency of the Islamic banks of the GCC was the DRS. Except the Islamic banks of Qatar, banks of the GCC countries were inefficient either because they operated under the IRS or DRS. DRS was the major source of inefficiency. Qatar Islamic banks demonstrated the highest level of efficiency in all three efficiency among GCC. The paper provides suggestions for future study. Keywords: GCC Islamic Banks, Technical efficiency, Bootstrap DEA, Bias-corrected technical efficiency. JEL Classifications: C14, G21; G22 DOI: https://doi.org/10.32479/ijefi.10127

This paper examines the relation between granting central banks more independence represented in both its manifested legal charter as well as actual practices adopted and inflation in Egypt during the period from 1998-2019. To do so, this paper first looks at the evolution of different central bank independence (CBI) measures and adopts the most comprehensive relevant one. Consequently, it runs a regression model adopting an autoregressive distributed lag (ARDL) model, regressing the dependent variable inflation on its determinants of legal CBI, actual CBI, M2 and openness, to capture such relation in both the short and long term time dimensions in the case of Egypt. The paper further provides an interpretation of computed outcomes, where it presents robust evidence of an inverse relation between inflation and CBI in Egypt in the period under study in its legal and actual form and in both the short-run and the long-run. Keywords: Central bank independence, Central Bank of Egypt, Inflation, Autoregressive distributed lag, unit root test JEL Classifications: E31, E42, E58, E370 DOI: https://doi.org/10.32479/ijefi.10941

In this paper, we examine the main determinants of tax revenues in Côte d'Ivoire, paying attention to institutional factors and the informal economy. To do this, we apply the autoregressive distributed lag model developed by Pesaran et al. (2001) on annual data covering the period 1984-2016. The results show that the low quality of institutions and the high share of the informal economy are among the factors explaining the low mobilization of tax revenues in Côte d'Ivoire. The results also reveal that GDP per capita, official development assistance, the share of services in GDP, the distribution of income within the population and the education level of the population positively affect tax revenues. On the other hand, trade openness negatively affects tax revenues. Based on these results, the paper provides several recommendations that can help improve tax revenues in Côte d'Ivoire. Keywords: Tax revenue, Institutional quality, Informal economy, Cointegration, Côte d´Ivoire. JEL Classifications: H2, O17 DOI: https://doi.org/10.32479/ijefi.10363

Infrastructure development is an essential element in economic growth and development. Good infrastructure fosters low transaction costs hence making production efficient and attracting foreign direct investments. However, there has not been adequate scholarly focus on how infrastructure development can affect the flow of foreign direct investments hence this paper sought to fill this gap. This paper utilized panel data from 12 eastern Africa countries from 2004 through 2017. Data on Infrastructure development variables was obtained from the Africa Development Bank's, Africa Infrastructure Development Index, that of control variables from the World Development Indicators kept by the World Bank and that of Foreign direct investments from UNCTAD. Due to the presence of heteroscedasticity in sample data, the study opted for a Generalized Least Squares (GLS) estimation method. The study established a significant relationship between infrastructure development and foreign direct investment inflows into the eastern Africa region. However, only Africa Infrastructure Index and Electricity Composite Index were positive while Transport Composite Index, ICT Composite Index and Water Supply and Sanitation Index were negative. Reasons being, Transport, ICT, water and sanitation are considered as social development factors. One of the control variables, total tax and contribution rate was negative indicating a unit increase in tax leads to a decrease in foreign direct investments whereas market size was positive and significant. The study recommends to policy makers to allocate resources into infrastructure development as an enabler of production efficiency, appraise the tax system to ensure a balance is stroked between taxing of investment returns and generating adequate tax revenue from multinationals and enhance its markets through multilateral and preferential trade agreements and regional integration agreements. Keywords: Africa Infrastructure Development Index, Transport Composite Index, Electricity Composite Index, ICT Composite Index, Water Supply and Sanitation Index, Foreign Direct Investments JEL Classifications: C33, F21, H4, R4 DOI: https://doi.org/10.32479/ijefi.10378

The recent rise in the number of ‘Fintech' companies is set to transform the financial services industry on a global scale. Fintech companies create more competitive advantages in the financial market by providing faster services in the field of payment, financial consultancy, lending, and investment. Many countries have joined the bandwagon of adopters; however, little is known about the factors behind their success. Therefore, this paper attempts to investigate the key factors that underpin the success of Fintech across the various financial sectors and highlight the challenges they pose to traditional banks. Due to limited scholarly work on the subject the paper conducts a meta syntheses of ten published global survey reports conducted by consultants such as PwC (2016; 2017;2019), Capgemini (2017), Ernst &Young (2017; 2018; 2019); KPMG (2019) etc. and relevant data from International Monetary Fund and World Bank reports (2019). We identified the key enablers and disablers of Fintech and classified them into macro and micro factors. We concluded that the success of Fintech is context dependent on the political, cultural and environmental factors in the adopting nation. Keywords: Fintech, Macro and Micro enablers; Context dependent; Disruptors JEL Classifications: E44, G1, G2 DOI: https://doi.org/10.32479/ijefi.10296

This research systematically reviews and evaluate literature on the interplay of the macroeconomy and house prices in the contemporary. The research recapitulates the ï¬ndings, data and models between and among the discussants in the extant literature to unearth new research gaps. The study analyzed 64 papers from thousands of scholarly papers from purposively sampled reputable database from 2015 to March, 2020, using a systematic review methodology. Based on the inclusion and exclusion criteria, the selected papers were categorized in relation to the direction of the impact to showing the nexus on the topic. It found that: both the macroeconomy and house prices impact on each other. However, macroeconomic variables were noted to impact on house prices more frequently than the opposite. To the best of the authors knowledge, this review is the first in recent past, to unembellished the dynamic relationship between the macroeconomy and house prices based on the direction in the contemporary. Particularly in the era where there are so much conjectures in the market of another financial crises. The study makes a contribution by identifying new research opportunities for future research and has practical implications to policy makers, researchers and property investors. Keywords: Macroeconomy, house prices, housing market, review. JEL Classifications: E, O18 DOI: https://doi.org/10.32479/ijefi.10368

The Micro, Small and Medium Enterprises (MSME) are crucial for the economic development of any country and play a pivotal role specifically for developing countries as they regulate economic activity and generate employment thus significantly contribute in poverty reduction. After agriculture, this sector is the second largest employer in India. Indian MSME sector has emerged as dynamic and highly vibrant sector of the economy. MSME, not only play significant role in generating large employment by investing less capital as compared to large industries but also help to develop non-farm sector by increasing industrialization in rural areas. The sector acts as the instrument of inclusive growth empowering the most vulnerable and marginalized groups. The main objectives of the paper are to explore the growth in the number of MSME units, GDP contribution, employment and exports of Indian MSME sector, to analyse the relationship between growth of MSME sector and fulfilment of Sustainable Development Goals (SDGs) 2030, to see the contribution of MSME sector in creating green jobs in India and to highlight the problems of MSME sector. This paper is based on the secondary data extracted from various reports and research papers related to MSME. The time period from 2006-07 to 2016-17 has been taken into consideration. MSME sector is the significant contributor in GDP, employment generation, total exports, achieving SDGs and green development which in turn act as backbone of the Indian economy. Keywords: Micro, Small and Medium Enterprises; Green Jobs; Sustainable Development Goals; Economic Development; Inclusive Growth JEL Classifications: O120; Q560; Q01; O100; O400 DOI: https://doi.org/10.32479/ijefi.10459

In today's financial markets, credit ratings play a significant role on the creditworthiness of firms as it represents the ability of a firm paying back debt and firm's risk of default. The purpose of this study is to empirically evaluate the impact of credit ratings on firms leverage decisions. This paper examines firms leverage behavior with the discrete benefits of higher credit rating hypothesis presented by Kisgen (2009). The empirical tests were designed based on the Partial Adjustment Model by Flannery and Rangan (2006). Firms that have faced a downgrade are more likely to reduce their financial leverage by reducing debts and issuing equity, with conscious of the costs of doing so. While firms that been upgraded from speculative grade to investment grade do little changes in their capital structure to maintain the discrete benefits attributable to higher credit ratings. The results of this paper are persisted with CR-CS hypothesis. Keywords: Financial Markets, Credit, Debt Management, Firm Performance, Capital Investment JEL Classifications: D53, E51, H63, L25, O16 DOI: https://doi.org/10.32479/ijefi.10436

This study aims to explore the gender gap in Algeria which consists of four dimensions: economic, educational, political, and health care through a comparative study, using a descriptive-analytical methodology. The data in this paper are extracted from global gender gap reports during the period between 2006 and 2018, in which 13 years of (GGG) reports show that Algeria is more successful in bridging the gender gap in education and health, whereas the political and economic gaps between women and men are far from being bridged. Women's economic participation and opportunity is a matter that Algeria had failed to address competently, rendering women's participation in Algerian economy and job market weak. This paper provides descriptive analysis to the gender gap development in the area of economic participation and opportunity, and gives some insights on the gender gap Sub-indexes for economical participation. Such a Gap can be attributed to a number of social and economic factors which are addressed in this paper, followed by some suggested recommendations on how to enhance the role of women in Algeria's economy. Keywords: gender gap, gender economic participation and opportunity gap, Algeria. JEL Classifications: J16, J71, O15 DOI: https://doi.org/10.32479/ijefi.10129

The P2P lending is a form of crowd-lending and is regulated by RBI as NBFC-P2P. While the P2P lending existed in India from the beginning of this decade (2011-2020), RBI brought it under its ambit through its Master Directions of 2017. The regulations are definitely a good sign to augur the growth opportunities of P2P lending while inculcating a sense of trust and confidence in the participants of P2P lending. However, the regulations, in the process, have also limited the scope of P2P lending. This exploratory paper studies the P2P lending process in India, in general. This paper also studies the operating strategies and risk management strategies of the P2P companies registered with RBI as on April 30, 2019. Further, the financial statements of around ten P2P companies are analysed to understand the functioning of P2P companies in India. The study serves in recognising the future evolutionary aspects in today's P2P lending framework. The study also points at few regulatory hurdles that needs to be tackled effectively in order to ensure that the potential gains of P2P lending is realised. Keywords: P2P, NBFC, Opportunities JEL Classifications: G23, G28 DOI: https://doi.org/10.32479/ijefi.10057

The main purpose of this paper is to assess whether the Money Demand Function is stable in South Africa by employing the Johansen co-integration and the Vector Error Correction Model (VECM). The results indicate unstable money demand function among its determinant including real income, interest rate, stock price, and real exchange rate. More importantly, the M3 has a significant long-run relationship among its determinant except the interest rate. Furthermore, the short term dynamics show that unidirectional causality runs from determinants to the broader money except interest rate and exchange rate. This paper provides crucial evidence for policy-makers to consider the importance of the stock market activity to avoid misspecification of the money demand function. Keywords: Money demand, Johansen, VECM, Stock price. JEL Classifications: E5, E41 DOI: https://doi.org/10.32479/ijefi.9799

This paper inspected the exchange rate volatility in Pakistan within the time of 1981m07 to 2013m04 at that point discover its impacts on trade deficit. ARCH and GARCH models are developing for catching the unpredictability impact of exchange rate volatility in Pakistan. Exchange standard unpredictability was figured in numerous past investigations by taking the standard deviation of the moving normal of the logarithm of exchange rate. In any case, in this paper exchange rate unpredictability is estimated by ARMA (0, 1) and ARCH/GARCH (2, 1) models and asymmetrical information is utilized as dummy variable. Exchange rate volatility is utilized as independent variable and trade deficit as dependent variable. Cash supply, private investment and gross domestic product are utilized as control variable. ADF (Augmented Dickey-Fuller) test used to check the stationary of the information the aftereffects of ADF demonstrates that a few factors are stationary at first contrast have request of joining I (1) and a few factors are stationary at level have request of reconciliation I(0). We utilize ARDL (Autoregressive distributed lag model) to break down the impact of exchange rate unpredictability on trade deficit. The outcomes appeared there is negative and huge long run connection between exchange rate unpredictability and trade deficit yet in short run it is noteworthy and positive. Keywords: Volatility, ARCH effect, Trade Deficit, ARDL JEL Classifications: E52, E58, F31 DOI: https://doi.org/10.32479/ijefi.9528

The research paper attempts to investigate the connection between Ownership Structure and Audit Committee Effectiveness on discretionary accruals in Pakistan. This study analyzed 5 years of data over the period of 2013 to 2017 of 169 listed firms of the Pakistan Stock Exchanges (PSX). The data is panel and it is analyzed with the fixed-effect regression to check the association between ownership structure and audit committee effectiveness on discretionary accruals. The findings of this article show that the effectiveness of an audit committee is very instrumental in bringing down the value of discretionary accruals. This paper confirms the view that audit committee effectiveness mitigates discretionary accruals in PSX listed firms, Furthermore, this study found no clue that blocks ownership, management ownership, foreign ownership and institutional ownership constrain discretionary accruals. To the best of researchers' knowledge, this empirical study is first of its kind in Pakistan. The present research study recommended and supports the recent amendment in Pakistan Corporate Governance Code about audit committee independence and expertise for reducing discretionary accruals. Keywords: Ownership Types, Audit Committee Effectiveness, Corporate Governance, Discretionary Accruals, Pakistan Stock Exchange JEL Classifications: G34, M4 DOI: https://doi.org/10.32479/ijefi.10081

This paper aims at examining whether reforms in EU economic and fiscal governance between the period starting from 2010 and ending on 2018 have increased the Gross Domestic Product growth rate in Greece and Portugal. Reforms occurred, such as “Six Pack”, “Two Pack”, the “Fiscal Compact”, and the “Euro Plus Pact”, have focused on fiscal consolidation and competitiveness improvement; in other words, during the aforementioned time period, EMU concentrated on the improvement of internal as well as external imbalances. Moreover, the present paper assesses the international competitiveness through the prism of two main indicators: Unit Labour Cost and Current Account Balance. It seems that the literature is not crystal clear on the relationship between debt and the fiscal policy on the one side, competitiveness and growth from the other side. The findings of the paper may be of great assistance to policy makers on growth, competitiveness and fiscal policy, as they highlight the relationship between economic stability, entrepreneurship and growth. The herein below presented results demonstrate that there is, indeed, a strong relationship between fiscal consolidation and growth, while the relationship between public debt, Unit Labour Cost, Current Account Balance and growth remains blurred. Keywords: Fiscal reforms, Entrepreneurship, Competitiveness, Economic Policy in EMU JEL Classifications: H30, H60, F15 DOI: https://doi.org/10.32479/ijefi.9889

This paper examines whether financial services (McKinnon conduit) or provision of credit is more effective in reducing poverty in Nigeria using data for the period 1980-2018. It employs Autoregressive and Distributed Lag Model (ARDL) Approach to estimate the parameters and cointegration analyses for income and consumption models. The results of the ARDL Bound Test to Cointegration indicate a long-run relationship among the variables in the two models. The study reveals that availability and improvement in financial services is more beneficial than credit growth. In addition, the study suggests that financial instability may hurt the poor and retards the beneficial effect of financial development particularly in the short run. The paper recommends intensification of effort towards second-generation reforms, such as, design and implementation of financial inclusion policies that involve improving access to financial services that foster inclusive-growth. Furthermore, the study recommends guided deregulation in credit market as a way of precluding or subduing its susceptibility in triggering full-blown crises that is detrimental to the poor's aggregate welfare. Keywords: Financial Sector Development, Poverty Reduction, ARDL Model, Nigeria. JEL Classifications: E51, E52, C52, E65 DOI: https://doi.org/10.32479/ijefi.9532

The paper investigates the dynamic linkages between exchange rate (against US dollar) and the stock market (local currency) of Tunisia from January 2004 to April 2017. In particular, the paper tries to answer if there are any correlations between these variables and how they move in high volatile periods. By using a VEC model and applying the techniques of Granger Causality test, we conclude the existence of a unidirectional relationship between the two variables (from stock prices to exchange rate). Due to persistent long memory and the presence of the asymmetric effect in both markets, we estimate the dynamic correlations between these variables using DCC-FIAPARCH model. Results reveal that volatility shocks create abrupt changes in the dynamic correlations. However, this effect is only short term and do not sustain between consecutive high volatility regimes. Thus, policymakers and investors do not need to be concerned about long run contagion effects. Accordingly, financial managers can obtain more insights in the management of their international portfolio affected by these two variables. This should be particularly important to domestic as well as international investors for hedging and diversifying their portfolio mainly by predicting the path of the exchange rate. Keywords: Stock Market, Foreign Exchange Market, VECM, Granger Causality, DCC-FIAPARCH JEL Classifications: D53, F31 DOI: https://doi.org/10.32479/ijefi.9623

Nowadays the world discuss the problem of the cryptocurrency and shows several risks in dealing with this new investment or banning it by governments and the main issue of this paper is how can the third part ex: (exchange market for trading cryptocurrencies) avoid cybercriminal activities, In this paper, we will define only two of cybercriminals that related to the third part directly, First: Ransomware attacks and how the process of storing cryptocurrencies can be secured. Second: Black net in which many illegal trades could be done and how can the third part (governments) monitor the relationship between buyers and sellers to avoid this problem. In this paper, we propose a framework that proposed in anew exchange market by integrating blockchain technology and IOT (internet of things) to increase the security in the two processes that consider the main issues for the exchange market: first: storing the cryptocurrencies securely and avoid ransomware attacks, second: monitoring the transactions and avoid illegal business (black net) could happen through it. And we can implement this framework for special types of partially decentralized cryptocurrencies ex: NEO and Libra coin. Keywords: Cryptocurrency, Hyperledger, Ransomware, Black Net, Blockchain, Internet of Things JEL Classifications: E58, M15, K22 DOI: https://doi.org/10.32479/ijefi.9130

The paper examines the corporate governance, board characteristics, performance and asset quality of Indian banks and investigates the impact of a set of board characteristics on performance and asset quality of banks. We use a sample of 34 scheduled commercial banks, for ten years from 2009 to 2018, accounting for about 90 per cent of the total banking assets and banking business India. We measure bank performance by return on assets (ROA) and asset quality of banks by ratio of net non-performing assets (NNPA) and document evidence on the role of the board characteristics on performance and asset quality of banks. The study finds that the board size and percentage of independent directors have significantly positive impact on ROA. The percentage of executive directors is having significantly negative relationship with the ROA. The board size and percentage of independent directors have significantly negative relationship with banks' NNPAs. The research suggests that the board of directors play a significant role in bank governance in India. The paper contributes to the literature on the corporate governance of banks in India, which is one of the emerging economies of the world. The research results provide some insights of corporate governance to the RBI for considering appropriate policy guidelines on corporate governance to banking industry in India. Keywords: Corporate governance, Board characteristics; Performance of banks, Non-performing assets JEL Classifications: G21, G28, G32 DOI: https://doi.org/10.32479/ijefi.9536

The political transition in the Arab Spring countries has been accompanied by a deterioration of economic and financial indicators like in the Tunisian case. This paper aims to get a deeper understanding of the nature of the rule that reflects the behavior of the Tunisian monetary authority in the current dominance of economic and financial instability. In particular, this paper assesses whether the Tunisian Central Bank is indeed following a linear or a non linear augmented Taylor rule. For our purpose, we use a forward looking version of Taylor rule augmented by including the effect of exchange rate to estimate the linear and the nonlinear models. A smooth transition regression model is used to estimate the nonlinear rule. The results obtained imply that the Tunisian Central Bank follows a nonlinear Taylor rule in the conduct of monetary policy. In addition, our evidence suggests that the reaction of monetary authority in Tunisia to the deviation of forecasts of inflation rate, output gap and exchange rate changes in terms of magnitude and statistical significance across the high and low interest rate regimes. In particular, when the lagged interest rate is above the threshold level of 4.76%, the main objective of the policy makers is to fight the inflation rate and to limit the depreciation of exchange rate rather than to boost the economic activity. Keywords: Taylor rule, smooth transition regression model, interest rate reaction function, nonlinearity JEL Classifications: C22, E17, E43, E52, E58 DOI: https://doi.org/10.32479/ijefi.8975

In this paper is presented a theoretical model finalized to explain the effects of the economic cycle on the real GDP growth rate of a given country's economy towards a selected business partner. In other words, the present paper expose an innovative theoretical model, based on the expectations-adjusted Phillips Curve and on the Okun's law, which proposes the existence of a relationship between the difference in the effective inflation rate and in the expected inflation rate of the national economy of a generic country (inflation gap), and the growth rate of the real GDP of the national economy and of its corresponding commercial partner, both determined by the different phases of the economic cycle. The two economies examined, for the purpose of empirical verification, are Germany and the group of the countries belonging to the euro area, considered, as a whole, as a single economy. The considered sample period ranges from the first quarter of 1999 to the first quarter of 2018. The result to which the authors arrive, appropriately verified with econometric models, indicates not only the existence, the significance and the robustness of the relationship established by it but also the ability of the model to predict, with good precision, the effects of the economic cycle on the real GDP growth rate, given the inflation gap. Keywords: Expectations-adjusted Phillips Curve, Okun's Law, Business Cycle, mathematical models and methods. JEL Classifications: C02, C32, E32, E37 DOI: https://doi.org/10.32479/ijefi.9236

Innovation Management has received a lot of attention in the last few decades, from a vital determinant of the global competitiveness of nations over the coming decade to the primary driver of economic progress and well-being. Many countries over the world have adopted national strategic roadmaps to foster innovation and enhance its economic impact to boost productivity and growth. The United Arab Emirates (UAE) came forward with the launch of the National Innovation Strategy in 2014. Hence, this paper has investigated the strategic importance of innovation management as a need for change and firms practices in one of the UAE Emirates (Fujairah Emirate). In doing so, the paper has sought to understand whether the concept of innovation management is featured in the UAE Company's culture and strategic plans or whether the management of the business firm is highly committed to innovation management and what an essential driver for UAE to engage in innovation management. To investigate this problem, a qualitative case study methodology is used to collect and analyze the data. Results indicate that there is a clear line of innovation management strategies in UAE and business firms in Fujairah Emirates response to concerns by integrating innovation management into business structure and systems. Keywords: Innovation Management, National Innovation Strategy, UAE, Fujairah JEL Classifications: M10, M12, M13, M14, M19, L25 DOI: https://doi.org/10.32479/ijefi.9088

This paper provides insights on the sustainability of SMEs in Oman and presents a conceptual framework for the government support to the SMEs. The paper adopted a sequential mixed method of interviews and structured questionnaire including 390 SMEs. Non-parametric techniques of chi-square test and spearman rank correlation were used. The challenges facing SMEs in Oman include: the rules and regulations of doing business, the competition, and the lack of access to finance. The study also found that there is a positive correlation between government support and sustainability of SMEs in Oman. From the perspective of the government, supporting the SMEs is strategic to diversity the national economy and reduce the unemployment among the youths. This support includes marketing, financial, advisory, management, technical and infrastructural. However, many of the owners of the SMEs were not aware of these supports and raised issues regarding the procedures, laws, regulation and sufficiency of these supports. Keywords: SMEs, Sustainability, Government Support, Non-parametric methods, Oman JEL Classifications: E24, G38, L26 DOI: https://doi.org/10.32479/ijefi.9063

This paper examines the role of export market uncertainty in the financing decisions of firms. To evaluate the effect of uncertainty reduction, I use the free trade agreement between Colombia and the USA that came into force in May 2012. Using firm-level data, and a diff-in-diff methodology, I find empirical evidence that Colombian firms that exported agricultural products to the USA experienced a decline in their leverage after the agreement's implementation. I further disaggregate the composition of liabilities to find that the source of decline was borrowing from financial institutions. I develop an oligopoly competition model with product market uncertainty where the source of uncertainty is embedded in a firm's profit function. The model predicts that the reduction in uncertainty leads to the decline in borrowing. The results of this paper suggest that trade agreements can benefit exporters in developing countries with imperfect capital markets where borrowing is costly. Keywords: capital structure, uncertainty, trade agreements, trade cost JEL Classifications: D22, F10, F14, G32 DOI: https://doi.org/10.32479/ijefi.8957

This paper aims to classify the credit risk and interpret the operational efficiency for Islamic banks listed on the Bahrain Stock Exchange (BSE). The paper is divided into two parts. Part I relates to classifying the risk of lending via a range of variables: lending ratios, loan profitability, and bank risk variables such as capital bank adequacy and financial leverage. Discriminant analysis has been used to prove the hypothesis in this section. Part II relates to the interpretation of operational efficiency via a set of variables reflecting the bank’s ownership, number of branches, financial leverage, and the size of the bank. The hypothesis here was proven by using a random regression effects analysis. The regression results reflected the impact of the mentioned variables on the operating efficiency for Islamic banks listed on the BSE. The study is structured as follows: Introduction; Models of forecasting financial failure; Review of literature on the efficiency of banks; Hypothesis of part 1,which classifies Islamic banks into three categories—low, medium, or high—based on the banks’ efficiency including hypotheses tests, description of variables, and the mathematical model; Results of hypotheses of part I; Hypotheses of part II, which is devoted to testing the efficiency of Islamic banks using the explained variables and the same methodology as in part I; Results of part II; Conclusion; and References.Keywords: loans profit efficiency, Islamic Banks, Z-scores, operating efficiency, classification.JEL Classifications: C33, C38, G21DOI: https://doi.org/10.32479/ijefi.7114

This paper seeks to identify the spillover effect of remittance and private sector credit disbursement, on the capital market and real estate of Bangladesh during the period of 2003-2013. The paper applied Vector Auto regression and Cholesky Factorization to construct spillover index through covariance matrix. The remittance and private sector credit were taken as input variables where market capitalization and real estate sector contribution to GDP were taken as outputs. The model tried to identify asset bubbles using calculated index scores. Both of the asset classes showed getting similar degree of influence by the inputs as their Return spillovers were around 40% and volatility spillovers were around 25%. The score for capital market indicated a bubble and the subsequent crash of 2010-11. As similar scenario was seen in case of real estate, it suggests that real estate too was experiencing a bubble which might lead to a crash soon.Keywords: Asset Bubble, Spillover Index, Vector Auto Regression, Stock Market, Real EstateJEL Classifications: G1, G15, G17, G29DOI: https://doi.org/10.32479/ijefi.7037

Efficiency in a foreign exchange market (FEM) is very essential for a developing economy like Bangladesh as the foreign exchange rates play a critical role to determine the various macroeconomic policies and issues of an economy. Thus the main objective of this paper is to investigate the efficiency of the FEM of Bangladesh. Statistics that have worn in this paper comprises of nominal daily exchange rates (spot) of seven bilateral currency rates in opposition to the Bangladeshi currency Taka over the period 1st January 2010 to 30th November 2017 obtained from the website of Bangladesh Bank. The unit root test and the cointegration test are run by econometric software to look into the efficiency of the FEM of Bangladesh. The concluding findings indicate that all the seven exchange rates succeed the random walk hypothesis and this is the verification of the weak form of efficiency. Moreover, the cointegration scrutiny depicts there is no indication of the semi-strong form of efficiency in the FEM of Bangladesh.Keywords: Foreign Exchange Market, Exchange Rate, Efficiency.JEL Classifications: F31, E44DOI: https://doi.org/10.32479/ijefi.7097