Relationship between Major Developed Equity Markets and Major Frontier Equity Markets of World

The core aim of this study is to compute the long run relationship between frontier equity markets Pakistan (KSE 100 Index), Argentina (MERVAL BUENOS AIRES) stock Exchange, NSE.20 (Kenya), MSM 30 (MSI) Oman and equity markets of developed world (OMXS30) Sweden, SMI (Switzerland), SSE Composite Index (China) and STI index (Singapore) by taking weekly values from stock return prices for the period 1st week of January-2000 to last week of March/2014.  Descriptive statistic, Correlation, Augmented dickey fuller (ADF), Phillips Perron test, Johanson and Jelseluis test of co-integration, Granger causality test, Variance Decomposition Test and Impulse Response are used to find the relationship among frontier and developed markets. The results of this study reveal that frontier markets have no long run relationship with equity markets of developed world. Furthermore, this study is helpful for investors to enhance the returns by diversifying the unsystematic risk at given level of profit. Keywords: Diversification, portfolio, frontier markets, unit root test, Co-integration test, markets of developed countries JEL CLASSIFICATION: G10; G2

Relationship between FDI and GDP: A Case Study of South Asian Countries

The basic objective of this study is to compute the long run relationship between FDI and GDP for south ASIAN countries (Pakistan. Nepal, Bhutan, India and Maldives). For this purpose, the FDI and GDP data of south Asian countries is collected for the period 1991-2012.the data was analyzed by using technique of unit root test, Johnson co-integration and granger causality test. The unit root test (ADF) augmented test confirmed that data is not stationary at level but it is stationary at first difference. The Result of co integration test indicates that there exist co-integration equations at the 0.05 level. The granger test shows that fdi and GDP in case of Nepal cause a unidirectional causality. The study will help and give guiding principle to policymaker and investor make scheme to prop up economic growth in Pakistan which is suffering from a high ratio of unemployment. Keywords: Foreign Direct Investment, Gross Domestic Product, Unit Root Test, Co integration Test, Granger Causality Tes

Ajit Mishra. The Economics of Corruption. New Delhi: Oxford University Press. 2005. 336 pages. Hardbound. Indian Rs 650.00.

The Economics of Corruption is a collection of papers covering both the theoretical as well as the empirical perspectives on corruption. It deals with various aspects of corruption and provides a well-integrated framework for research in this growing and active area of inquiry. Besides the first chapter, “Corruption: An Overview”, written by Ajit Mishra, which is an excellent review of the existing literature in the field, the book consists of ten articles divided by three themes. “Corruption as phenomena [sic] is always associated with an agency structure” writes Ajit in the introductory chapter of the book (p. 5). Corruption arises when the principal and agent have conflicting objectives and the principal fails to design the comprehensive enforceable contract due to lack of information. It becomes complicated when the principal puts an incentive scheme in place so as to induce optimal action by the agent and hires another agent to implement this incentive scheme, referred to as Supervisor. Ajit classifies this Principal-Supervisor-Agent problem, broadly, into three different types of relationships according to the powers and responsibilities enjoyed by the Supervisor

Volatility of stock markets (An analysis of South Asian and G8 countries)

The objective of this study is to make an analysis of volatility of stock markets between South Asian Stock Markets and Stock Markets of Group of Eight Countries. For this purpose, three major South Asian countries Pakistan, India and Sri Lanka are selected while Group of Eight Countries include France, Russia, Canada, Germany, Italy, Japan, UK and USA. The stock indexes include KSE 100 (Pakistan), SENSEX (India), ASPI (Sri Lanka), CAC 40 (France), DAX (Germany), S &P / TSX Composite (Canada), FTSE MIB (Italy), RTS (Russia), Nikkei 225 (Japan), S & P 500 (USA) and FTSE 100 (UK). Data is collected from the period of January 1st 2005 to August 31st 2015. ARCH and GARCH model is used to analyze the volatility of South Asian Stock Markets and stock markets of Group of Eight Countries. The findings show that South Asian Stock Markets are less volatile while Stock Markets of Group of Eight Countries are high volatile. This study is helpful for investors and decision maker to handle the trend of stock market and provide a direction for investors to reduce the barrier factors which affect stock market efficiency.&nbsp

Relationship between Major developed equity markets and Major Frontier Equity Markets of World

The core aim of this study is to compute the long run relationship between frontier equity markets Pakistan (KSE 100 Index), Argentina (MERVAL BUENOS AIRES) stock Exchange, NSE.20 (Kenya), MSM 30 (MSI) Oman and equity markets of developed world (OMXS30) Sweden, SMI (Switzerland), SSE Composite Index (China) and STI index (Singapore) by taking weekly values from stock return prices for the period 1st week of January-2000 to last week of January/2014.  Descriptive statistic, Correlation, Augmented dickey fuller (ADF), Phillips Perron test, Johanson and Jelseluis test of co-integration, Granger causality test, Variance Decomposition Test and Impulse Response are used to find the relationship among frontier and developed markets. The results of this study reveal that frontier markets have no long run relationship with equity markets of developed world. Furthermore, this study is helpful for investors to enhance the returns by diversifying the unsystematic risk at given level of profit because results of this study confirm that markets are no co-integrated

Influence of single and multiple dry bands on critical flashover voltage of silicone rubber outdoor insulators: simulation and experimental study

Dry band formation on the surface of outdoor insulators is one of the main reasons leading to flashover and power outages. In this paper, a dynamic arc model is proposed for single and multiple dry bands configuration to predict the critical flashover voltage for silicone rubber outdoor insulators. An arc is modelled as a time dependent impedance consisting of a Resistor Inductor Capacitor (RLC) circuit. The effect of dry band location and existence of multiple dry bands on critical flashover voltage is investigated. To validate the proposed model, experiments were conducted in a climate chamber under controlled environmental conditions on rectangular silicone rubber sheets polluted using improved solid layer method based on IEC 60,507. Tests were conducted at different dry band configurations and pollution severity levels. A good correlation was found between experimental results and simulation results. This model can provide a good foundation for the development of mathematical models for station post insulators having multiple dry and clean bands and can be used in the design and selection of outdoor insulators for polluted conditions

Examining the Impact of Corruption on Financial Sector Development in Arab League Countries

Arab League Countries have seen major regulatory and financial reforms in the last two decades and during this period these counties have been marred by corruption. In this background, this study explores the impact of corruption on financial sector development in Arab League countries from 2001 to 2020. By using the dynamic panel data estimation technique of the Generalized Method of Moments on a sample of 20 Arab League countries, the study reports its findings. The finding shows that there is a significant negative effect of corruption on financial sector development. These results favor the notion of the “sand the wheels” hypothesis. The findings of this study highlight the insensitiveness of financial development to corruption during Global Financial Crisis (2008). The results also indicate that there is an adverse effect of corruption on financial development after Arab Spring. The study acknowledges the moderation role of rule of law in the relationship between corruption and financial development.&nbsp