• The Journal of Asian Finance, Economics and Business
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• v.8 no.2
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• pp.65-75
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• 2021

This study analyzes the validity of the Phillips curve with regards to Turkey. The existence and direction of the causality relationship (reason-outcome relationship) between unemployment and inflation is investigated using inflation and unemployment data for the period 1980-2019. Unit root tests were utilized to evaluate the stationarity of the series. In line with the Zivot-Andrews unit root test, which was developed in response to the criticism of the failure of studies that presented macro-variables like inflation to consider traditional unit root tests, in this research, the Engle-Granger cointegration test was implemented to check whether the series could perform a joint action, and, finally, the Granger causality relationship was explored. According to the results of the analysis, over the relevant period there was a single directional causality relationship from inflation toward unemployment in Turkey. The importance of this relationship at the 10% significance level indicates the existence of many different factors that affect inflation and unemployment. Given the existence of a cointegration and causality relationship between inflation and unemployment, it can be said that, in Turkey, the Phillips curve is valid for the period 1980-2019 and that an increase of 1% in inflation will reduce the unemployment rate by 0.028%.

• The Journal of Asian Finance, Economics and Business
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• v.8 no.2
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• pp.201-211
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• 2021

This study aims to analyze the determinants of macroeconomic and institutional stability on the development of the global sukuk market by controlling the effects of population. This study uses panel data namely GDP per-capita, exchange rate, and inflation as the proxies for macroeconomic stability sourced from the World Development Index, and six dimensions of Worldwide Governance Indicators (WGI) as institutional proxies sourced from WGI-World Bank. To make robust the relationship between macroeconomics and institutional on the global sukuk market, the population (POP) variable was included as a control variable. The development of sukuk uses a proxy for sukuk issuance in the International Islamic Financial Market, for the annual period from 2002-2017. The data was analyzed using the General Method of Moment, and the results show that by controlling the population effects that proved to be significant, GDP per-capita and the rule of law have a significant impact on the development of sukuk, especially when incorporating population effects as control variables, whereby further ascertaining the effect of each macroeconomic-stability variable and institutional stability on sukuk development, especially inflation, found not to affect sukuk development. These results also confirm the previous findings, whereby inflation remains controllable at a certain level for economic development.

• The Journal of Asian Finance, Economics and Business
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• v.8 no.2
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• pp.675-684
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• 2021

This paper aims to analyze factors influencing earnings of workers in Vietnam using provincial-level data from 2016 to 2018. We show the important determinants of earnings of workers of more than 15 years old including working hour, labor force, life expectancy, education, regulation measured by Provincial Competitiveness Index (PCI) and especially Industry 4.0, our major depart from literature proxies by government expenditure on science and technology, number of phone lines, and number of internet users. Working hours are a typical measurement of quantity of labor supplied. Labor force represents market size from the supply side. Life expectancy measures the health of laborers, a physical quality measure of workers. PCI stands for institutional status of the locality. Two most important factors of our interest are education, representing qualification of workers, and Industry 4.0, reflecting the new working environment of workers. By estimating a robust standard error fixed-effect model, we have evidence that all factors are significant in explaining earnings of Vietnamese workers. Education and IR4.0 play an important role in earnings of workers of Vietnam. Results also provide an estimation of Vietnam's labor supply in the context of Industry 4.0. In addition, findings contribute to explain the income discrepancy among Vietnamese provinces.

• The Journal of Asian Finance, Economics and Business
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• v.8 no.7
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• pp.447-456
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• 2021

State-Owned Enterprises (SOEs) are business entities that are owned mainly by the state. Good financial governance (GFG) is as important for SOEs as for the private sector companies. Prudence and GFG can affect the value of the company. This research aims to test the impact of macroeconomics, investment decisions, and financing decisions on prudence, Corporate Social Responsibility Disclosure (CSRD), dividend policy, and company value of SOEs registered on the IDX from 2014-2019. GFG and financing decisions are moderating variables. The population in this study is 16 SOEs listed on the Indonesia Stock Exchange from 2014-2019. The research method is quantitative and uses Partial Least Squares (PLS), which is an approach to Structural Equation Models (SEM) that allows researchers to analyze the relationships simultaneously. The results showed that macroeconomic factors, investment decisions, financing decisions, and prudence directly affect the company's value. However, CSRD and dividend policy directly do not affect the company's value. Prudence can mediate the influence of financing decisions on company value. GFG moderates the relationship between prudence and company value. Thus, GFG is key to producing compliant regulatory reports and disclosures. GFG aims at facilitating effective monitoring and efficient control of the business. Its essence lies in fairness and transparency in operations and enhanced disclosures for protecting the interest of different stakeholders.

• The Journal of Asian Finance, Economics and Business
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• v.8 no.2
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• pp.783-790
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• 2021

The remittances play a major and a very critical role in promoting economic growth and development activities in the developing countries. In this study, the relationship between per capita gross domestic product (GDP) and remittances paid has been investigated based on the case studies in Malaysia from 1987 to 2018. Data was collected from various sources namely statistical yearbook by World Bank and Asian Development Bank. All variables are expressed in natural logarithm form. The technique utilized is the nonlinear autoregressive distributed lags (hereafter NARDL) approach which was introduced by Shin et al.(2014) to examine both short run and long run relationships, as well as the direction of causality, due to the asymmetric relationship between GDP and remittances. The bound test verifies asymmetric cointegration among the variables. The empirical results show that the remittances paid has a momentous short-run and long-run effect towards capital accumulation in Malaysia. Remittances also increase a positive relationship with capital accumulation for Malaysia. We found that remittances form a significant source of external capital and investment for developing countries especially Malaysia which helps in promoting economic development. Furthermore, as a developing country, foreign workers are a source of income to the receiving countries and an indicator to boost sender countries.

• The Journal of Asian Finance, Economics and Business
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• v.8 no.9
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• pp.1-9
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• 2021

This study aimed to investigate the existence of the Feldstein-Horioka (1980) puzzle in international macroeconomics by applying the conditional Autoregressive Distributed Lag (ARDL) model to examine the long-run relationship between national savings and investments in Thailand and China. The input of this study relied on annual national savings and investments as a fraction of GDP during 1980-2019 which was collected from China National Bureau of Statistics (NBS) and Thailand National Economic and Social Development Council (NESDC). Hypothetically, Augmented Dickey-Fuller (ADF) and Phillips-Perron (PP) unit root tests were applied to test the stationary properties and to investigate the integration level of selected time series. The empirical results, confirmed by cumulative sum (CUSUM) and cumulative sum square (CUSUMSQ), maintained no serial correlation and structural break problems. The finding of this study suggested that the Feldstein-Horioka puzzle in Thailand did not exist significantly. Thailand's national savings and investments nexus was independent, following the classic economic idea that financial liberalization, or perfect capital mobility, allowed national savings and investments to flow freely to countries with better interest rates. Whereas, a strong significant correlation was found in the case of China during the fixed exchange rate regime switching in 1994 and post WTO participation after 2001-2019.

• Journal of Distribution Science
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• v.22 no.6
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• pp.1-10
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• 2024

Purpose: This study's objective is to examine the impact of firm-specific and macroeconomic factors on the business performance of non-cyclical and cyclical sectors in Indonesian listed firms. The evaluation of business performance holds paramount importance for the achievement and long-term viability of a company. Research Design Data and Methodology: The data for 61 non-cyclicals sector companies and 57 cyclicals sector companies was gathered over a 4-year period from 2018-2021. The model integrates firm size, leverage, and sales growth as firm-specific factors, with real GDP growth and inflation rate as macroeconomic variables. ROA and ROE are indicators of a firm's business performance. The regression models are estimated using the distribution of a dynamic approach with Arellano-Bond Panel Generalized Method of Moments (GMM) estimation. Results: The results of the pooled sample indicate that the historical ROA and ROE have a positive relationship with the business performance of all sectors, including both non-cyclical and cyclical industries. The ROE of non-cyclical enterprises is primarily influenced by firm-specific characteristics and macroeconomic influences. Conclusion: To ensure the successful implementation of the distribution of a dynamic approach towards enhancing corporate business performance, organizations need to take into account a combination of firm-specific factors and macroeconomic factors.

• The Journal of Asian Finance, Economics and Business
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• v.7 no.6
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• pp.117-125
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• 2020

This paper aims to investigate FDI attractive factors, which are important to formulate policies to attract Korean direct investment into Vietnam. Based on the literature review and the results of interview with 27 Korean investors in Vietnam, we determined the model of variables attracting Korea's FDI into Vietnam. It is used to assess the impact of attractive factors belonging to three groups of variables to support investment decision; they are macroeconomics variables (including market size factor, labor cost factor, and market openness factor), policies variables (including monetary policy factor and tax rate gap factor), and microeconomics variables (geographic advantage factor representative by location). This research also utilized a relatively new quantitative research method based on the Autoregressive Distributed Lag model (ARDL) with the time data chain from 1995 to 2017 of Korean FDI into Vietnam. It analyzes long-term relationships between dependent variables and independent variables. The result of this study indicates that there are three positive factors (low wages, trade openness and government policy) explaining the FDI flows in the long term. The result also shows that incentive tax policy has had a positive impact on Korean FDI, which has satisfied the aim of seeking efficiency of Korean investors.

• Proceedings of the Safety Management and Science Conference
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• 2009.04a
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• pp.109-121
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• 2009

In these OECD countries, left-wingers Government focus on unemployment, but right -wingers Government cares more about inflation. It is that inflation and unemployment don't have differential effects across rich and poor and the happiness levels of these two groups are unaffected by identity of the Government in power. The poor people choose to left-wingers Government, but rich people prefer to right -wingers Government. I estimate whether above opinion is correct or not. Especially I check how my results change when I control for aggregate economy activity and government consumption, two variables that could be correlated with inflation and unemployment and affect each Government's happiness differentially. This paper, and I believe much of the happiness literature, can be understood as an application of experienced utility, a conception that emphasis the pleasures derived from private consumption and sentiment of it. In Granger Causality test, private consumption sentiment index related with industrial production interactively in Korea. The business cycles affect on private consumption sentiment index.

• Journal of Digital Convergence
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• v.18 no.11
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• pp.267-272
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• 2020

Macroeconomics are one of the indicators that are preceded and analyzed when analyzing stocks because it shows the movement of a country's economy as a whole. The overall economic situation at the national level, such as national income, inflation, unemployment, exchange rates, currency, interest rates, and balance of payments, has a great affect on the stock market, and economic indicators are actually correlated with stock prices. It is the main source of data for analysts to watch with interest and to determine buy and sell considering the impact on individual stock prices. Therefore, economic indicators that impact on the stock price are analyzed as leading indicators, and the stock price prediction is predicted through deep learning-based prediction, after that the actual stock price is compared. If you decide to buy or sell stocks by analysis of stock prediction, then stocks can be investments, not gambling. Therefore, this research was conducted to enable automated stock trading by using macro-indicators and deep learning algorithms in artificial intelligence.