Morteza Ghaseminezhad, Aref Doroudi, Seyed Hossein Hosseinian and Alireza Jalilian
Voltage fluctuation (flicker) is a power quality disturbance that can produce several undesirable effects on industrial equipment. This paper aims to present the methodology and…
Abstract
Purpose
Voltage fluctuation (flicker) is a power quality disturbance that can produce several undesirable effects on industrial equipment. This paper aims to present the methodology and results of investigations undertaken to examine the speed and torque of an induction motor (IM) under voltage fluctuation conditions.
Design/methodology/approach
The IM response to different characteristics of voltage fluctuations is presented. It will be shown that under a special condition the IM torque can even reach two times the rated torque. To show how this occurs, a qualitative discussion is given on the motor response by linearized equations.
Findings
The small-signal analysis was used to determine the frequency which leads to maximum speed fluctuations. It was shown that, if the motor is excited with a modulation frequency (resonant frequency) which is one of its natural frequencies (modes), the mode will act as a fluctuating amplifier and greatly increase the amplitude of torque and speed fluctuations. Sensitivity analysis is also carried out to evaluate the influence of motor parameters on the resonance frequency. The results show that the resonance frequency is not affected at all by the changes in magnetizing reactance. This has been shown that magnetic saturation does not have any impact on the resonance frequency. The most effective parameters are rotor and stator resistances.
Originality/value
With the increasing popularity and use of arc furnace loads in the metallurgy industry and due to the wide application of large IMs in the industry, it is possible that the frequency of torque pulsation locates near a natural frequency and then will create an oscillation with a large magnitude, potentially leading to accelerated fatigue or severe damage of shaft. However, if this phenomenon occurs in industries, the resonance frequency must be filtered from the input voltage. Experimental results on a 1.1 kW, 380 V, 50 Hz, 2 pole IM are used to validate the accuracy of simulation results.
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The purpose of this paper is to examine the relationship between financial sector development and poverty reduction in India using annual data from 1970 to 2012. The paper…
Abstract
Purpose
The purpose of this paper is to examine the relationship between financial sector development and poverty reduction in India using annual data from 1970 to 2012. The paper attempts to answer the critical question: does financial sector development lead to poverty reduction?
Design/methodology/approach
Stationarity properties of the series are checked by using Ng-Perron unit root test. The paper uses the Auto Regressive Distributed Lag (ARDL) bound testing approach to co-integration to examine the existence of long-run relationship; error-correction mechanism for the short-run dynamics and Granger non-causality test to test the direction of causality.
Findings
The co-integration test confirms a long-run relationship between financial development and poverty reduction for India. The ARDL test results suggest that financial development and economic growth reduces poverty in both long run and short run. The causality test confirms that there is a positive and unidirectional causality running from financial development to poverty reduction.
Research limitations/implications
This study implies that poverty in India can be reduced by financial inclusion and financial accessibility to the poor. For a fast growing economy with respect to financial sector development this may have far-reaching implication toward inclusive growth.
Originality/value
This paper is the first of its kind to empirically examine the causal relationship between financial sector development and poverty reduction in India using modern econometric techniques.
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Napoleon Kurantin and Bertha Z. Osei-Hwedie
In recent years, the global economy has undergone major transformations involving the liberalization of markets for traditional goods, services, and capital flows. This has led to…
Abstract
In recent years, the global economy has undergone major transformations involving the liberalization of markets for traditional goods, services, and capital flows. This has led to the emergence of a world financial market underpinned by digital platforms, innovative and the rapid growth of integrated digital platforms, integration, investment, economic growth, development, and the potential for poverty reduction, especially, in the Global South and, in particular in sub-Saharan Africa. The goal of this chapter is to investigate the increasing accessibility and relationship between digital (e-economy) financial integration and poverty alleviation since the era of structural adjustment programs in sub-Sahara Africa with Ghana as a case study. The emphasis is on the New Digital Economy (NDE) relative to new sources of data from mobile and ubiquitous Internet connectivity. The processes of digitalization and financial sector integration and inclusion become increasingly contestable, decomposable, and reconfigurable, and the capacity to innovate will be a key success factor in policies geared toward poverty alleviation. The multiple linear regression model and its estimation using ordinary least squares (OLS) is doubtless the most widely used tool in econometrics. It helps to estimate the relation between a dependent variable and a set of explanatory variables. An OLS model for macro data set relative to a regression model is applied to provide the empirical estimations of the increasing accessibility and the relationship between digital financial integration, investment, economic growth, development, and poverty alleviation.
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Segun Thompson Bolarinwa, Abiodun Adewale Adegboye and Xuan Vinh Vo
The paper examines whether there is a threshold between financial development and poverty in African economies.
Abstract
Purpose
The paper examines whether there is a threshold between financial development and poverty in African economies.
Design/methodology/approach
The study adopts the innovative dynamic panel threshold model of Seo and Shin (2016) made practicable by Seo et al. (2019)–the model estimates threshold relationship even in the presence of endogeneity. Also, following the recommendations of Cihak et al. (2013) and Sahay et al. (2015), we also adopt a robust measure of financial development based on the four pillars of financial deepening, stability, efficiency and access derived from the principal component analysis (PCA).
Findings
The empirical results show that there exists a threshold level of financial development necessary for poverty reduction in Africa.
Research limitations/implications
Our result is important for policy formulations. First, individual African country must discover the level of financial development necessary for spurring poverty reduction. Second, policymakers, especially in lower-income countries, must keep improving their financial sector development to achieve the threshold level necessary for achieving poverty reduction even though financial development might seem less relevant at its present level.
Practical implications
The policymakers in Africa should note that there exists a threshold level of financial development that reduces poverty. Hence, the present level of financial development might have not yielded a considerate effect on poverty. Still, the policymakers must keep pushing on until the threshold is achieved.
Social implications
Financial development reduces poverty level but it must reach a certain threshold level before it does so. So, we advise African policymakers to continue to develop their financial sector to achieve this threshold.
Originality/value
This seems to be the first work to document the threshold relationship using the dynamic panel threshold. Besides, the study specifically concentrates on Africa dividing the continent into different income levels. Moreover, we adopt a robust measure of financial development unlike extant studies on Africa.
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The purpose of this study is to empirically examine the impact of financial development on poverty reduction in Egypt. The paper also investigates whether financial development…
Abstract
Purpose
The purpose of this study is to empirically examine the impact of financial development on poverty reduction in Egypt. The paper also investigates whether financial development affects poverty via gross domestic product (GDP) growth.
Design/methodology/approach
This study uses the autoregressive distributed lag approach to estimate two specifications. The first is dependent on poverty by the ratio domestic credit to the private sector (percentage of GDP) and the second is dependent on the poverty by the ratio liquid liabilities to GDP or M3/GDP. The data are annual and cover the period from 1980 to 2015.
Findings
In long run, the study finds that relationship between economic growth and poverty is bidirectional. Financial development and poverty (household final consumption expenditure per capita) are complementary as bidirectional (in Granger sense). In short run, the study finds the bidirectional causality between financial development (real domestic credit to private sector per capita) and poverty reduction.
Practical implications
The findings suggest that governments should remove policies that impede the ability of banks to offer loan products or undermine the commercial incentive structure for banks or borrowers. It is crucial to enhance the role of specialized state-owned banks in financial intermediation.
Social implications
Several attempts have been made to investigate the relationship between financial development and other macroeconomic variables, but few studies have examined the impact of financial development on poverty reduction. Furthermore, the majority of the previous studies are based on Asia and Latin America – affording Egypt very little or no coverage at all.
Natalya Smith, Ekaterina Thomas and Christos Antoniou
The purpose of this chapter is to examine the relationship between multi-national firms (MNEs), institutions and innovation.
Abstract
Purpose
The purpose of this chapter is to examine the relationship between multi-national firms (MNEs), institutions and innovation.
Methodology/approach
We empirically examine the link between corruption and innovation within the environment of Russia. The use of data on foreign direct investment (FDI) from both emerging and developed markets provides us an opportunity to test whether the impact on innovation of different types of MNEs varies.
Findings
We find that, in the environments with high political risk, corruption may act as a hedge against such risks, boosting the scope and scale of innovation. We, however, find no support for the assumption that the experience at home of emerging country MNEs would offer them the advantage over the developed country MNEs in environments with weak institutions.
Research implications
One of the major implications of this study is that, in as geographically large country as Russia, it is critical to consider the factors affecting innovation output at sub-national level.
Originality/value
The study is novel as it is the first to examine how innovation is affected by institutions in general and corruption in particular. But in our approach, we use the measure of the actual rather than perceived corruption. Previous studies have largely focused on developed country MNEs; in this study, we examine the impact on innovation of investors from developed as well as emerging economies.
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Muftau Olaiya Olarinde and Zakari Abdullahi Yahaya
The purpose of this study is to examine the role of institutions and policies on growth convergence in Africa.
Abstract
Purpose
The purpose of this study is to examine the role of institutions and policies on growth convergence in Africa.
Design/methodology/approach
This study uses different methods of panel modelling on a panel of 50 African Countries covering a period of 1990-2014.
Findings
The results confirmed the presence of conditional convergence among countries in the region. On the average, technology accumulation and fiscal policies indicators are positive function of growth, while human resources, monetary policies indicators and ineffective institutions partly necessitated by poor level of development negatively impact growth. The study concludes, though traditional growth variables and policies are imperative in achieving growth in income, they remain insufficient in an environment characterize by extractive and absolutist institutions. Therefore, institution remains the link that bridges the gap in between proper mix of resources and policies.
Research limitations/implications
Based on the results, policy-makers in the region should allocate certain percentage of their resources (on a sustainable basis) towards building a qualitative institution. Also, future studies on Africa should be focused on the rate at which poor level of economic development determines the quality of institutions which in turn impacts the level of growth in income.
Originality/value
The study contributes to the existing literature on institutional convergence with particular focus on African countries using system GMM to capture the endogeneity among the series.
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Kanokporn Intharak, Surachai Chancharat and Jakkrich Jearviriyaboonya
Empirical evidence shows that banking development has a significant impact on macro-level economic growth through the finance-growth nexus and also highlights the prominent effect…
Abstract
Empirical evidence shows that banking development has a significant impact on macro-level economic growth through the finance-growth nexus and also highlights the prominent effect of development on local economy and household welfare, particularly in developing countries with restricted access to financial systems. The authors investigated the role of local banking development in affecting household welfare in Thailand which is a modest degree of financial access compare to other countries. The authors focus on the development of the banking sector in four dimensions, including financial depth, financial stability, financial efficiency and financial inclusion, and its impact on household welfare using the generalized method of moments approach to address the endogeneity problem. The authors employ biennial household welfare data from the National Statistical Office survey from 2007 to 2019 which covers all provinces in Thailand. The findings suggest that each type of banking development significantly affects household income and consumption in Thailand, although in different ways. Financial depth decreases income and consumption expenditure, while financial inclusion increases income and consumption expenditure (level effect). However, there are insignificant impacts on volatility of household income and consumption (volatility effect). Our findings prove that the implementation of policies to promote banking development either promote or decrease household welfare. This study can provide insight on policy impact and assist policymakers in considering the adoption of banking development policies to promote growth of the local economy, while at the same time aiming to reduce welfare inequality.
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Shekhar Saroj, Rajesh Kumar Shastri, Priyanka Singh, Mano Ashish Tripathi, Sanjukta Dutta and Akriti Chaubey
Human capital is a portfolio of rich skills that the labour possesses. Human capital has attracted significant attention from scholars. Nevertheless, empirical findings on the…
Abstract
Purpose
Human capital is a portfolio of rich skills that the labour possesses. Human capital has attracted significant attention from scholars. Nevertheless, empirical findings on the utility of human capital have often been divided. To address the research gap in the literature, the authors attempt to understand how human capital plays a significant role in financial development and economic growth nexus.
Design/methodology/approach
The authors rely on secondary data published by the World Bank. The authors use econometric tools such as the autoregressive distributive lag (ARDL) model and related statistical tests to study the relationship between human capital, India's financial growth and gross domestic product (GDP) growth.
Findings
Study findings suggest that human capital and financial development contribute significantly to economic growth. Further, the authors found that human capital has a positive and significant moderating effect on the path of joining financial development and economic growth.
Practical implications
The study contributes to the human capital debate. Despite the rich body of literature, the study based on World Bank data confirms the previous findings that investment in human capital is always useful for the financial and economic growth of the nation.
Originality/value
This paper reveals some unique findings regarding effect of financial development and economic growth nexus which opens the window of new dimension to think about their nexus. It also provides a different pathway to foster the economic growth by using human capital and financial development as together, especially in India.
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Victor Yawo Atiase and Dennis Yao Dzansi
Microfinance which refers to the issuance of microloans and the delivery of other related financial services to mostly necessity entrepreneurs has remained a major developmental…
Abstract
Microfinance which refers to the issuance of microloans and the delivery of other related financial services to mostly necessity entrepreneurs has remained a major developmental tool across the developing world. With its inception from Bangladesh’s village of Jobra in 1976, microfinance has provided financial capital to many poor households to engage in income-generating activities in order to increase their assets and reduce vulnerability. Most often than not, necessity entrepreneurs who endeavor to start their own businesses depend on microfinance as a source of financial resource into their Micro and Small Enterprises (MSEs). Using Ghana as the study country, this study investigated the impact of microfinance on the necessity entrepreneurs in the areas of poverty reduction, employment generation as well as the various difficulties associated with Microfinance delivery in the Greater Accra region of Ghana. We conducted a paper-based survey with 378 MSE owners from this region. The results indicate that microfinance has contributed to employment generation and poverty reduction in the Greater Accra region of Ghana through the provision of microloans to necessity entrepreneurs to engage in various types of income-generating activities. However, necessity entrepreneurs are faced with loan inadequacy issues coupled with under-financing difficulties. More so, they are also faced with non-flexible loan terms and cumbersome loan application procedures which do not support business expansion and employment generation. This study contributes to the debate on the social logic concept of microfinance delivery and poverty reduction. Microfinance therefore remains an indispensable tool in supporting necessity entrepreneurs in promoting self-employment.