Eurasian Journal of Business and Economics

Number 27, 2021

13
Does the Export-Led Growth Hypothesis Hold for Services Exports in Emerging Economies?

Authors: Okpeku Lilian ONOSE, Osman Nuri ARA

Abstract

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Number of views: 146

The export-led growth hypothesis states a positive relationship between the growth of exports and long-run economic growth. This study examines the validity of the export-led growth hypothesis of services exports in 5 emerging economies, including Brazil, India, Nigeria, China, and South Africa (BINCS), for the period of 1980-2019. The study employs the panel mean group autoregressive distributed lag (ARDL) procedure to identify a causal relationship between services exports and gross domestic product (GDP) per capita. The findings show that the export-led growth hypothesis in services only has a positive effect on economic growth in the short run while other variables, including foreign direct investment (FDI), gross capital formation, and labour, increase economic growth in the long run. Hence, the emerging countries should focus more on internal investment to boost growth in the long and short run.

14
The Impact of North Korea’s Nuclear Tests on Asian Stock Markets

Authors: Chung BAEK

Abstract

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Number of views: 196

This study investigates the impact of North Korea’s nuclear tests on Asian stock markets. Two approaches are used separately in order to identify how stock market returns and volatilities change immediately after the nuclear tests. We find that the Chinese stock market tends to be more sensitive to unexpected shocks from North Korea’s nuclear tests than other Asian stock markets. However, relatively, the Japanese stock market is little influenced by the nuclear tests though Japan is not only geographically close to North Korea but also politically vigilant to North Korea’s nuclear threats. Also, we find that strengthened return correlations (linearity) do not necessarily increase stock return volatilities.

15
Monetary Policy and Housing Prices Dynamics in India

Authors: M. Waseem NAIKOO, Arshid H. PEER, , Farhan AHMED, M. ISHTIAQ

Abstract

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Number of views: 190

This study attempts to examine the relationship between monetary policy and housing prices in India. We use monthly data from January 2009 to December 2018 of four variables- Housing Price Index (HPI), Real Effective Exchange Rate (REER), Gross Domestic Price (GDP), and interest rate for our estimations using the Autoregressive Distributive Lag (ARDL) Model. The results from the study show that the impact of monetary policy on housing prices is significant only on lag three; however, the coefficient is very small. The results from the ARDL model are also supported by the variance decomposition of housing price. The variance decomposition of housing prices highlights that monetary policy explains around 13 percent of the variation in housing prices over a period of ten months. Further, the accumulated impulse response function reveals that with one-unit shock to interest rate results in a -0.000875 unit change in housing price. The study stipulates that, since conventional monetary policy has a modest impact on housing prices, therefore, it is insignificant for addressing the problems of real estate in India.

18
Impact of COVID-19 on Stock Market and Gold Returns in India

Authors: Sarika MAHAJAN, Priya MAHAJAN

Abstract

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Number of views: 180

The spread of COVID-19 has caused severe damage to human lives and the global economy. The stock markets around the world have plummeted to their lowest levels since the 2008 Global Financial Crisis. This paper attempts to examine the joint dynamics of gold and stock market returns during unprecedented times of health and financial shock due to COVID-19 between January 2020 and May 2020 using granger test, ARMA model, and symmetric and asymmetric GARCH models to improve the understanding of the microstructure of investment scenario in India. The period considered in the study helps to evaluate the impact of lockdown due to coronavirus on Gold and Nifty index return. Results based on GARCH and E-GARCH models indicate a significant negative impact of gold on nifty returns during the sample period. The results also indicate investors' perception of gold as a safe haven asset during periods of elevated uncertainty. Thus, the study is expected to enhance the understanding of market asymmetry, the behavior of investors towards these avenues of investments, and information processing.

19
Effects of Talent Management Practices on Organizational Engagement: A QuasiExperimental Study

Authors: Selman TETIK, Halil ZAIM

Abstract

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Number of views: 134

Talent management (TM) is considered a strategic tool to gain a sustainable competitive advantage for organizations. This study aims to explore the effects of TM practices on the engagement level of employees. A field study has been conducted within a Turkish holding to analyze the effects of TM. However, the scope of the study is restricted to the administrative departments within the headquarters of the holding. A quasi-experimental design is developed to conduct the research, and two groups are designated as the talent and the control groups for the study. Data is collected via surveys on the members of both groups before and after the intervention. Interviews are conducted during the intervention process, a talent matrix and a talent grid are developed, and the development practices are offered and partially implemented. In order to investigate the impact of TM on employees' organizational engagement, the means (averages) of two groups are compared before and after the implementation of TM program. We tried to determine if the difference is statistically significant or not. The research findings reveal a significant difference in the employees' organizational engagement level between the talent group and control group before and after the implementation of TM program. This result indicates that TM strategy has a significant positive impact on employees' engagement.

28
Determinants of the Financial Constraint and Its Effects on the SME Growth in Central Asia

Authors: Mirgul NIZAEVA, Ali COSKUN

Abstract

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Number of views: 188

This study investigates the firm- and country-specific factors that affect SMEs’ access to finance and the relationship between financial constraint and firm growth in emerging economies of Central Asia. To address the research questions, a two-stage empirical analysis including ordered probit, probit, and feasible generalized least squares (FGLS) specifications were conducted. Firm-level data used in the analysis is obtained from the fifth round of the Business Environment and Enterprise Survey (BEEPS V) and country-level data acquired from national and international datasets. The study's findings implied that in the Central Asian economies, country-specific factors are more likely to affect access to external finance of SMEs than firm-specific determinants. Among firm-specific factors, only foreign ownership is significantly related to financing constraint perception of SMEs; where, the interest rate is positively, and domestic credit market, inflation, and log of GDP per capita are negatively related to financing constraint level. In Central Asia, an insignificant relationship between growth and financing constraints was found. The determinants of financing constraints and access to finance–growth relations, which address the issue of great significance for SME growth in the selected countries, were interpreted with region-specific factors.