Academic Journal of Economic Studies

23-28

Authors: Christopher Daniel Watson

The market ideology of the People’s Republic of China (PRC) has undergone substantial reformation over the past three decades in regards to their engagement in international trade and investment. There is no doubt that China has embraced aspects of capitalism, however admitting this is a more difficult task for them. The inclination of Socialism with Chinese Characteristics has been apparent and the official economic and market position of the Communist Party of China (CPC) since its architect Deng Xiaoping instituted these reforms. Moreover, this market platform can be identified as Market Socialism with Chinese Characteristics or simply Market Socialism. According to the State Council, the banking and financial industry does not constitute a strategic and/or pillar industry, in which the CPC maintains an absolute or strong influence in. However, regardless of this determination, this paper argues that the CPC maintains a decisive and strategic role in the operations and practices of its financial champions. With respect to strategic trade theory, the idea that governments introduce mechanisms, which attempt to capture increased market share and profits for domestic enterprises. Traditionally, creating national champions through industrial policy has been a mode of augmenting the competiveness of domestic enterprises engaged in commercial affairs. This approach can also be applied in creating national champions in the banking and financial industry, which can equally prove to be instrumental in aiding in the national economic agenda. This paper attempts to analyze certain aspects of the PRC banking structure to preliminary determine how inter-connected their operations are to China’s Market Socialism.

39-47

Authors: Fahima Charef

The modeling of the dynamics of the exchange rate at a long time remains a financial and economic research center. In our research we tried to study the relationship between the evolution of exchange rates and macroeconomic fundamentals. Our empirical study is based on a series of exchange rates for the Tunisian dinar against three currencies of major trading partners (dollar, euro, yen) and fundamentals (the terms of trade, the inflation rate, the interest rate differential), of monthly data, from jan 2000 to dec-2014, for the case of the Tunisia. We have adopted models of conditional heteroscedasticity (ARCH, GARCH, EGARCH, TGARCH). The results indicate that there is a partial relationship between the evolution of the Tunisian dinar exchange rates and macroeconomic variables.

59-67

Authors: Ozoemena Stanley Nwodo, Fredrick Onyebuchi Asogwa

This study focuses on global integration, non-oil export and economic growth in Nigeria. The direct and interaction effect of the both openness variables and non-oil export on economic growth in Nigeria is investigated using quarterly data from 1986-2014. For analysis, it uses one measures of financial openness: de facto (total capital flow) variables following Aizenman and Noy (2009).and a measure of trade openness adopted by Okoh (2004). The study applies the Autoregressive Distributed Lag Model (ARDL). The results show positive impact of non-oil export on economic growth in Nigeria both in the short run and in the long run, negative effect of trade and financial openness on economic growth however, the result recorded a negative effect of the interaction of trade openness and non-oil export on economic growth and a positive effect of the interaction of financial openness and non-oil export on economic growth. Thus, the study recommends among others that government should get the fundamentals right in the economy first that will boost non-oil sector before opening the economy for trade.

73-80

Authors: Chimere Okechukwu Iheonu, Godfrey Ikechukwu Ihedimma, Samuel Nzube Eze

This study scrutinized the precursors of Inflation in Nigeria between the periods 1980 to 2014. The Augmented Dickey-Fuller test was engaged to test for stationarity of the variables while the Autoregressive and Distributed lag (ARDL) Model was applied to capture the affiliation between inflation and selected macroeconomic variables. Our findings revealed that there exists a long run relationship between Inflation, money supply, interest rate, GDP per capita and exchange rate in Nigeria while in the short run, money supply has a significant positive one period lag effect on Inflation and Interest Rate also has a significant negative one period lag influence on Inflation in Nigeria. Recommendations are that in the short run, monetary policies should be geared towards the control of money supply and interest rate in Nigeria in other to regulate Inflation and also, the Nigerian economy can afford to vary any of human capital development or technological advancement to boost productivity without causing inflation as GDP per capita proved insignificant in the short run.

88-96

Authors: Idoko Ahmed Itodo, Shahrzad Safaeimanesh, Festus Victor Bekun

This study investigates the relationship between Energy use and the growth of the Turkish Manufacturing Sector, using Vector Error Correction and Granger causality, between 1960 and 2015. The research found a long-run association among these variables. However, while the VEC granger causality test result suggests no causality running, either direction, from predetermined Energy Use to Growth in Manufacturing Sector, the Variance decomposition and impulse response tests suggested a positive causality, running from contemporaneous values Energy Use to current and future values of Growth in the Manufacturing Sector of Turkey. It is recommended that more investments be made in the energy sector to help sustain the current performance in the manufacturing sector.