• The Journal of Asian Finance, Economics and Business
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• v.7 no.11
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• pp.657-668
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• 2020

This paper investigates the effect of market structure, including some bank-specific variables and macroeconomic conditions, on the profitability of Indonesian Islamic rural banks. We apply the structure conduct performance (SCP) and the relative market power (RMP) hypothesis. Panel data comprising 142 Islamic rural banks from 2013Q1 to 2018Q4 are employed. This study breaks them apart, associated with the level of economic development consisting of Java as developed regions and outside Java as less developed regions. This study employs static and dynamic panel regression. The GMM method, however, is appropriate because of the dynamic nature of profitability. Our results confirm the SCP hypothesis and fail to support the RMP hypothesis. The higher market concentration allows Islamic rural banks to generate a significantly higher profit by conducting a collusive strategy. More interestingly, the collusive behavior may result in more profit for Islamic rural banks located in the developed regions than those in less developed regions. Evidence also highlights the importance of operating efficiency and impaired financing on profitability. High operating efficiency and low impaired financing can improve profit. Our results suggest that capitalizing market share by improving efficiency and optimizing financing contracts between PLS and non-PLS contracts also improve profit.

• The Journal of Asian Finance, Economics and Business
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• v.8 no.1
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• pp.81-91
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• 2021

This paper investigates the long run hedging ability of precious metals against the risks associated with adverse conditions of economic and financial variables for Pakistan, the USA, China, and India. Monthly data of gold, silver, platinum, stock returns, exchange rate, industrial production, and inflation was collected for the selected economies. Saikkonen and Lutkepohl (2002) unit root test was employed to access the unit root properties of the data series and identify the break dates. Furthermore, this study used the Johansen cointegration test with and without structural breaks to identify the long-run relationship between metals prices and different financial and economic variables. The findings suggest that the time series under study have unit root problem at level with and without structural breaks. Without considering structural breaks, the Johansen trace test indicates that in Pakistan and China, gold, silver, and platinum hold a cointegrating relationship with macroeconomic and financial variables. For the US, gold indicates cointegration which supports the hedging ability of gold against inflation, stock, and industrial production in the long run. The results of the cointegration test after incorporating the structural breaks provide even stronger evidence of the long-run relationship of precious metals and consumer prices, exchange rate, and stock prices.

• The Journal of Asian Finance, Economics and Business
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• v.8 no.4
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• pp.653-663
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• 2021

There has been a massive increase in household debt in China, especially in the last five of years. Learning from past experiences, the country needs careful forecasting that may help to form new policies or make amendments to the existing ones. This research paper aims to highlight the impact of the monetary policy on household debt in China. The study covers the time period from 1996 to 2020 The study employs a cointegration test, Autoregressive Distributed Lag Bound Test (ARDL) approach, a Augmented Dicky Fuller (ADF) and PP test (PMG) and time series data. The findings suggest on a quantitative analysis using a time-series model in which gdp per capita and interest rate has a positive impact on household debt whereas, cpi doesn't have significant impact. In a short-term variables relationship, household debt responds more to an increase in income than in the long-term. Also, the impact of interest rate changes on household debt is lower than income in the short run.The research suggests that there should be some restrictions on household debt and consumer financing provided to citizens and for this, appropriate leverage measures should be taken in order for the central bank to sustain robust macroeconomic conditions.

• The Journal of Asian Finance, Economics and Business
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• v.8 no.3
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• pp.1135-1142
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• 2021

This study aims to examine the factors that determine bond yields in infrastructure companies listed on the Indonesia Stock Exchange. The research sample used 31 bonds issued by the company during the 2015-2019 period. The data analysis method to estimate the determinant of bond yield uses multiple regression models. The results prove that the increase in the coupon rate causes bond yields to increase, while the inflation rate has the opposite effect of decreasing bond yield. Interest rate, exchange rate, duration, and bond rating variables cannot affect the bond yield. The results of this study imply that investors will be interested in investing in bonds with better yields if the company has to set a higher coupon rate, especially in economic conditions that experience low inflation rates. Interest rates and exchange rates as macroeconomic variables have not been considered by investors in purchasing bonds. Bond characteristic factors, namely, the duration and rating of the bonds, are considered less important factors in bond investment decisions because they are more oriented towards getting higher yields. Therefore, further research needs to be explored further related to the behavior of Indonesian bond investors who may have different characters from investors in other countries.

• The Journal of Asian Finance, Economics and Business
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• v.8 no.8
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• pp.325-334
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• 2021

The study investigates the effectiveness of the macroprudential policy on credit growth in Vietnam. The authors use the logic of the transmission mechanism of macroprudential policy on credit growth. Research variables include economic growth, inflation, interest rate, and quarterly bank-level data from 28 commercial banks in Vietnam during 2011-2018. The results reveal that: (i) GDP growth had a positive impact on credit growth of small banks but had no impact on large banks, (ii) Domestic Systemically Important Banks (D-SIBs) and small banks respond differently to macroprudential measures of imposing different credit growth targets for different bank groups, (iii) Restrictions on foreign currency loans are found to be effective in curbing credit growth for the full sample and small banks, (iv) Inflation and economic cycle have significantly impacted credit growth at bank-level in Vietnam and (v) Interestingly, a significant positive relationship between interest rates and credit growth is found for the full sample and D-SIBs in Vietnam. The findings suggest that a stable macroeconomic environment should be good conditions for financial stability, and monetary authority should pay more attention to small banks' behaviors than D-SIBs behavior, toward such "administration" tools since small banks tend to prefer "breaking the rules" to make profits.

• Korean Journal of Agricultural Science
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• v.49 no.1
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• pp.77-91
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• 2022

North-South Korea economic integration is progressing slowly given the sensitive responses to changes in internal and external conditions. Nevertheless, advanced discussions focusing on North-South Korean economic cooperation should continue. Given this background, various studies of the economic effects of economic integration between North and South Korea have been conducted, but research on agricultural issues has been limited. The purpose of this study is to analyze the impact of the economic integration of South and North Korea on the agricultural market. In this study, a simultaneous equation model was constructed using a growth model. Solow's growth accounting approach is used to construct a model for estimating the macroeconomic effect of North-South economic integration. Also, the construction of growth accounting formulas subdivided into South and North Korea as well as agriculture and non-agricultural fields during the construction of the growth model is a major research achievement and differentiates it from previous studies. It is expected that the results of this study will serve as basic information for preparing policy measures to promote integration. However, there are many limitations when estimating the economic effects of North-South agricultural integration and obtaining policy implications given the insufficient available statistical data on agriculture in North Korea and the lack of related studies in the agricultural field. Therefore, it should be noted that there is an inherent problem in that the analysis results vary greatly depending on the assumptions set, as there is inevitably no choice but to rely on many and strong assumptions.

• Journal of the Korea Academia-Industrial cooperation Society
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• v.17 no.10
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• pp.39-45
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• 2016

This study analyses the macroeconomic effects of the direct payment system (DPS) for environment-friendly agriculture in Korea. We utilized the applied general equilibrium model (AGE model) for the general agricultural sector as well as the environmentally-friendly agricultural sector. We considered several scenarios based on various direct payment amounts to measure and analyze economic impacts. Scenario 1 considers the current direct payment system. Scenario 2 examines an additional 5% increase from the direct payment amount in scenario 1. Scenario 3 reviews an increase of 10% in direct payment amount while Scenario 4 considers an additional increase of 15% compared with Scenario 1. Lastly, scenario 5 examines a 20% increase in direct payment amounts compared with scenario 1. In addition, the baseline considers conditions prior to the introduction of the direct payment system. The simulation analysis results show that capital formation, production volume, and labor productivity increased in the environment-friendly agricultural sector. In contrast, employment in the environment-friendly agricultural sector decreased. The price of environment-friendly agricultural products following the introduction of the DPS remain consistent with the price of environment-friendly agricultural product before introducing the DPS. This results from price elasticity of supply and demand are inelastic, and there is no change in the income of consumers during the analysis period. However, additional research is necessary for improvement of the model using complementary statistical data for the environmental-friendly agriculture sector.

• International Journal of Computer Science & Network Security
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• v.21 no.3
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• pp.235-244
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• 2021

The change of the development of transport and logistics systems occurs with the active change of technology and the advent of the era of Industry 4.0. It requires modernization of approaches to the development of transport and logistics systems at the macro and micro levels. The present study aims to identify perspective directions of development and evolution, find out the existing obstacles in the integration of technological solutions of transport and logistics systems at the macro and micro levels. This study is based on a quantitative and qualitative methodology for assessing the level of integration of technologies into transport and logistics systems to study the prospects for their development at the micro level. Macroeconomic indicators of transport and logistics in the context of different regions of the world were used to quantify the development prospects. For a qualitative assessment of the development of the transport and logistics system, the case study method was used. The object of the study was selected logistics company Sensco Logistics Inc., Austin TX. At the macro level, countries with more innovative logistics sectors have stronger mechanisms for coordinating private sector activities. Simplification of administrative procedures of control and regulation by the public sector in order to facilitate trade between countries is a promising direction for the development of transport and logistics systems. Such reforms are more effective in developing a "rigid" transport infrastructure. The integration of Industry 4.0 technology solutions into the international logistics sector is defined by political and legal barriers, especially in developing countries. In low-income countries, hard and soft infrastructure reforms are hindering the development of logistics companies that provide transport services. This determines the national level of development of transport and logistics systems, and in general the global level of development of transport and logistics. In developed countries, the legal barriers to the development of new technological logistics are environmental requirements for the integration of technologies into the transport system. These trends are slowing down the development of International Logistics, which, compared to other industries, is slower to integrate Industry 4.0 technologies. This study combines macroeconomic factors that determine the prospects for the development of transport and logistics systems at the micro level.

• International Journal of Computer Science & Network Security
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• v.21 no.12spc
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• pp.604-610
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• 2021

Human capital is the defining value of the national economy under market conditions. The manifestation of human capital is realized as an intellectual and creative capital, theoretically grounded and proven. The realization of intellectual capital is realized through the research creativity of scientists and researchers, and creative capital is manifested through artists and thinkers. Accordingly, creativity in market conditions forms a separate source of income and is an essential article in the formation of the GDP of the national economy. This research aims to analyze human capital from the perspective of cultural and creative industries. Research methods: systematization; comparative analysis of individual indicators of advanced countries of the world on the training system; statistical, taking into account macroeconomic indicators to assess the level of national creativity potential; system and logical analysis; method of information synthesis. Research results. The structural and quantitative composition of the factors of intellectual and creative capital formation has been systematized. The article proves that the unique properties of human capital, knowledge, creativity, experience and professional skills are the push factors of creativity development of the national economy and provide the priority development of creative and cultural industry that allows generating the added value on the national scale. The functions of creativity in the sphere of cultural industries are highlighted. It is noted that education and creativity of both intellectual and creative capital are the forming basis. The research of the world's advanced countries on the creativity index has pointed out the Netherlands as the leading country in the quantitative measurement of creativity. The economic development factors of the Netherlands were analyzed from the position of economic creativity, which allowed the formation of a two-factor model providing priority development of creativity in the cultural and creative industries.

• KDI Journal of Economic Policy
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• v.37 no.sup
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• pp.33-63
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• 2015

This paper attempts to investigate the Korean households' inflation expectations with particular attention to information rigidity. For this purpose, we derive an empirical model from a sticky information model $\acute{a}$ la Mankiw and Reis (2002) and estimate it. In addition, it is also examined whether the expectation formation is state-dependent on macroeconomic conditions. The main findings of this paper are as follows. First, it turns out that the information rigidity in Korean households' inflation expectations is very high. In a month, most of the households simply keep their inflation expectations the same as before instead of updating them based on newly arrived information. Furthermore, when updating their expectations, the households tend to rely on the backward-looking information such as actual inflation rates in the past rather than on the forward-looking forecasts by experts. Second, it is found that the expectation formation is varying as inflation rate changes. Specifically, when the inflation is high, the sensitivity of the households' inflation expectations to actual inflation increases and the gap between inflation expectations and actual inflation shrinks. It implies that Korean households update their expectations more frequently when the inflation matters than not.