Search results

The unstable money demand function over the recent decades may explain the unsatisfactory performance of the exchange rate model. Numerous studies have shown that Divisia money serves as a better variable for a stable money demand function. In this study, Divisia money is used as an alternative money supply in MYR/USD exchange rate determination. This study finds that Divisia money differential, real income differential, relative short-term interest rate and real stock prices affect the MYR/USD exchange rate in the long run. The major implication of this study is that policy-makers could monitor the MYR/USD exchange rate via the money supplies following the principle of Divisia monetary aggregate, which assigns higher weightage to more frequently traded monetary assets.

The paper evaluates the international linkage of Indonesian stock market during pre‐crisis and post‐crisis periods using time series techniques of cointegration and vector autoregression (VAR). We find evidence for lack of cointegration among the Indonesian market, other ASEAN markets (Malaysia, the Philippines, Singapore and Thailand) and two advanced markets (the US and Japan) during both pre‐crisis and post‐crisis periods. Looking at short run dynamics, we document evidence for substantial interactions among the ASEAN markets. However, it seems that the Indonesian market becomes more segmented from other ASEAN markets during the post‐crisis period. Additionally, while most ASEAN markets respond quickly to shocks in the US regardless of the sample period and seem to be less influenced by the Japanese market post crisis, the Indonesian market becomes more responsive to the developed markets of the US and Japan during the post crisis period.

This paper examines the causal relationship between stock market performance and foreign exchange market in Egypt over the period 2009–2016. The study period is divided into two sub-periods: pre- and post-January 25th Egyptian revolution (ER). The reason is to examine how this revolution affects the causal relationship between the two markets' performance.

In this study, the daily basis data are used to enable good and effective observation changes in the foreign exchange rate and stock market performance over time. Stock market indexes and stock market capitalization are used as proxies for stock market performance. Further, the Egyptian pound to US$ exchange rate is used as a measure for foreign exchange market performance. The study analysis is done in stages. The first is to check the variables' stationarity for the pre- and post-revaluation. The second is to examine the cointegration among the variables. The third is to run vector autoregression (VAR) estimates, after which VAR Granger causality tests are employed.

The results show that the data are not stationary at their levels but stationary in their first difference level while there is no cointegration in the long-run among the variables in both sub-periods. Further, findings indicate that, in the pre-January 25th revolution period, there is a significant causal relationship between the foreign exchange market and stock market indexes and a significant causal relationship between market capitalization (CAP) and exchange rate at the 1% level. However, in the post-January 25th revolution period, the study does not find a significant causal relationship between foreign exchange market and stock market indexes and capitalization.

As this study focuses on the causal relationship between foreign exchange and stock markets before and after the 25th January Revolution, other macroeconomic variables such as consumer price index, interest rate and GDP were excluded for the comparison purposes with other studies. Further research is suggested to include them in the analysis to find out its effect on the performance of stock market and foreign exchange market.

The existence of long-run bidirectional causality means that portfolio managers and hedgers may have improved their understanding regarding the dynamic relationship between foreign exchange market and stock market performance as this may help them to plan and implement suitable hedging strategies to guard against currency risk in future crises or events. Investors, fund and portfolio managers and policymakers should give much attention to these event-specific interactions when they make capital budgeting decisions and implement regulation policies. Furthermore, our results may allow portfolio managers, investors and policymakers to assess the importance of informational efficiency for both markets.

This paper is an original contribution to the literature that concerns the causal relationship between stock market and foreign exchange market in the period of political instability and social unrest such as the January 25th Revolution in one of the emerging markets, namely Egypt.

The purpose of this paper is to uncover the direction of causality between foreign exchange market and stock market in Bangladesh, where financial markets are yet in their early development stage.

The paper employs the Granger causality tests using monthly data spanning over two decades. In order to study possible existence of causality in the data, sub‐samples are constructed in addition to the full sample.

The overall results indicate absence of any causality running between foreign exchange market and stock market in the full sample and in the sub‐sample created around the stock market crash.

This study would be the first of its kind using Granger causality approach to test whether change in exchange rates lead to changes in the stock market in Bangladesh, and vice‐versa. The paper also offers some implications of the findings which could be of significant value to policy makers.

Banks are important sources of external credit but they are reluctant to lend to small and medium enterprises (SMEs) due to the high credit risk involved. Therefore, Credit Guarantee Corporation (Malaysia) Limited (CGC) was set up to assist SMEs to secure loans from financial institutions in Malaysia. Being the sole issuer of credit guarantees to SMEs, the performance of CGC directly reflects the availability of credit guarantees to SMEs. Hence, to ascertain the accessibility of credit guarantees, this study evaluates the efficiency of credit guarantee schemes provided by CGC. From a non‐parametric analysis, CGC is found to be operating at a relatively low level of overall technical efficiency. Therefore, CGC should consider reallocating its existing inputs as well as increase the amount of credit guarantees granted to SMEs in order to achieve a reasonable level of efficiency.

The friendliness of a destination is a key factor influencing tourists' destination selection. However, few studies have explored the construct of friendly tourism destinations. The purpose of this study was to establish a typological framework of friendly tourism destinations and compare older and younger adults' valuations of friendly destination attributes.

A mixed-method approach was used; in-depth interviews were conducted with 18 tourism stakeholders. Content analysis of the collected data was performed to construct a friendly tourism destination framework.

The framework consisted of 37 categories, which were classified into six themes: transportation and infrastructure, friendly tourism environments, government policies and tourism promotion measures, tourism products and activities, tourism information services and friendly residents. Furthermore, survey data from 1,153 respondents in Taiwan revealed that older adults valued friendly tourism environments and friendly residents more highly than younger adults did.

The participants were all from Taiwan; therefore, the results might not be applicable to tourists in other countries or regions. Furthermore, this study only compared the valuations of older and younger adults for the attributes of friendly tourism destinations.

Friendly tourism destination categories can provide a reference for tourists when making travel decisions. The framework provides destination marketers with a new tool for managing friendly tourism destinations. The findings can act as a reference for travel suppliers seeking to improve tourism-friendly services.

This study introduced a multifaceted framework for developing friendly tourism destinations from a holistic perspective. The results contribute to the tourism literature, revealing that younger and older adults have different valuations for the attributes of friendly tourism destinations.

The purpose of this paper is to empirically explore market integration among five selected Association of Southeast Asian Nations (ASEAN) emerging markets (Malaysia, Thailand, Indonesia, the Philippines and Singapore) during the pre‐ and post‐1997 financial crisis periods.

Employs two‐step estimation, cointegration and generalized method of moments (GMM).

The study finds that the stock markets in the ASEAN region are cointegrated both during the pre‐ and post‐1997 financial crisis. However, the markets are moving towards a greater integration, particularly during the post‐1997 financial crisis. Finally, as measured by the error correction terms, except the emerging market of Indonesia, all other ASEAN markets appear to be the important bearers of short‐run adjustment to a shock in the long‐run equilibrium relationships in the region both during the pre‐ and post‐crisis periods.

The study only focuses on stock markets of the five founding members of ASEAN, i.e. Malaysia, Indonesia, Thailand, Singapore and the Philippines.

The paper reveals that unlike during the pre‐crisis period, the long‐run diversification benefits that can be earned by investors across the ASEAN markets in the post‐crisis period tend to diminish.

The study is among the first to use two‐step estimation, cointegration and GMM to re‐examine market integration either in the emerging or developed markets.

This paper aims to examine the dynamic interactions between monetary and financial variables in the Indian context.

In this paper, the authors have applied a recently developed asymmetric autoregressive distributed lag (ARDL) model by Shin et al. (2014), for detecting nonlinearities focusing on the long-run and short-run asymmetries among economic variables.

The results point toward the presence of asymmetric reaction of stock prices to changes in interest rate and exchange rate in full sample, as well as in pre-crisis. However, no asymmetry was found in the post-crisis period. The results further suggest that tight monetary policies appear to retard the stock prices, more than easy monetary policies that stimulate them.

The findings of the study can be helpful in understanding the policy transmission mechanism through asset price channel.

To the best of the authors’ knowledge, this is the first study that examines the interactions between monetary and financial variables in the Indian context in an asymmetric framework. The findings of this study are quite interesting and are different from several existing studies in the literature.

This study aims to investigate factors and their impacts on halal tourism destinations revisit intentions among Muslim travelers, and explore the mediating effects of emotional attachments between halal social environments, halal food and beverages, halal services and halal tourism destinations revisit intentions.

Based on review of literatures, and by distributing 500 questionnaires to Muslim respondents and subsequently collecting 387 usable responses, the study is conducted through partial least squares structural equation modeling using Smart PLS3.3.3.

The findings of the study reveal that halal social environment, halal food and beverages, halal entertainments, halal staff clothing and emotional attachments significantly influence halal tourism destinations revisit intentions, whereas halal services has insignificant impact on halal tourism destinations revisit intentions, and halal social environment, halal food and beverages and halal services have positive significant impacts on emotional attachments toward halal tourism destinations. Moreover, emotional attachments partially mediate in the relationship between halal social environment, halal food and beverages, halal services and halal tourism destinations revisit intentions.

The current study findings uniquely contribute to the development of halal tourism destinations in Bangladesh by revealing the impactful factors and formulating marketing strategies that can increase Muslim travelers’ revisit intentions toward halal tourism destinations.

To the best of the author’s knowledge, this study is one of the pioneer research studies of halal tourism revisit intentions, providing new and unique theoretical and practical contributions to the enhancement of halal tourism industry in the world as well as Bangladesh. The findings could contribute to the halal tourism literature by identifying and evaluating factors influencing Muslim travelers’ revisit intentions toward halal tourism destinations. Moreover, the findings could help halal tourism operators in introducing halal attributes for creating Muslim travelers’ revisit intentions toward halal tourism destinations.

The experience of rising trade imbalance between Nigeria and its key trading partners in recent years motivated this study. Previous studies on this issue either ignored bilateral level or assumed that the effect of crude oil price and/or exchange rate changes on trade balance is symmetric. Consequently, this study investigates whether Nigeria's bilateral trade balance with Belgium, China, United Kingdom (UK) and USA is responding symmetrically or asymmetrically to changes in oil price and exchange rate.

The authors used nonlinear autoregressive-distributed lag (NARDL) model that decomposed oil price and exchange rate into partial sum processes of positive and negative changes over the period 1999Q1–2019Q4.

The study finds that the effects of oil price hike and plunge asymmetrically influence Nigeria's trade balance with the UK and USA. Further evidence indicated that oil price plunge exerts greater influence than price hike in all the cases, except the UK in the long run. Furthermore, Nigeria's trade balance responds asymmetrically and significantly to changes in exchange rate with China in the long run and with China and the UK in the short run. Specifically, the depreciation effect is more prominent than appreciation.

Significant contributions to the existing literature in Nigeria include the recognition that the effects of oil price and exchange rate changes on trade are asymmetric and the disaggregation of trade into bilateral level to identify country-specific effect.