International Capital Flows and the Frankel-Dooley-Mathieson Puzzle

Frankel et al (1986) pointed out that industrialized countries have larger saving rate coefficients than do developing countries in the framework of Feldstein-Horioka puzzle. This is referred to as the Frankel-Dooley-Mathieson puzzle in this paper. This paper extends past analyses by incorporating indices of a domestic institutional and policy environment. Applying the resulting model to Sub-Saharan African countries, saving rate coefficients larger than those previously imagined were obtained. These results are consistent with the reality of capital regulations and other factors resulting in low capital flows in developing countries.capital mobility

The information role of commodity prices in formulating monetary policy: some evidence from Japan

This paper uses the BOJ index published by the Bank of Japan to empirically analyze the relationship between the commodity price index and macroeconomic variables in Japan. The BOJ index was found to be valid as a leading indicator of the consumer price index before the zero interest policy was introduced. Afterwards, however, this relationship ceased to exist.causality

Empirical Analysis of the Money Demand Function in Sub-Saharan Africa

This paper empirically analyzed the money demand function in the Sub-Saharan African region using a nonstationary panel data analysis. We conducted the analysis on 35 countries based on annual data from 1980 to 2005. The empirical results revealed that there exists a cointegrating relationship of the money demand function in the Sub-Saharan African region. In other words, there is a close relationship between the money supply and the real economy over the long term, and monitoring money supply promises to play an important role in stabilizing the level of prices in this region.

Empirical Analysis of Export Demand Behavior of LDCs: Panel Cointegration Approach

In this paper, we use panel data to empirically analyze the stability of the export functions of LDCs for the period 1980-2004 using the nonstationary panel time series analysis. We find that the use of panel data for the region of the LDC clearly supports a cointegrating relationship. Our empirical results also show that price elasticity ranges between -0.24 and -0.34 and income elasticity ranges between 1.36 and 1.79 for the panel of LDCs.LDCs; export demand function; panel unit root; panel cointegration

Energy prices and China’s international competitiveness

This paper uses the CCF approach to analyze and determine whether there is a causal relationship between the world energy price index and China’s international competitiveness. The data on the volatility of energy prices can provide information in addition to that available in the price data alone. Our analysis suggests that the volatility of energy prices has significant implications concerning information linkages between the energy market and China’s international competitiveness.energy prices; international competitiveness; CCF approach; Chinese economy

An empirical analysis on the efficiency of the microfinance investment market

This paper empirically analyzes the market efficiency of microfinance investment funds. For the empirical analysis, we use an index of the microfinance investment funds and apply two kinds of variance ratio tests to examine whether or not this index follows a random walk. We use the entire sample period from December 2003 to June 2010 as well as two sub-samples which divide the entire period before and after January 2007. The empirical evidence demonstrates that the index does not follow a random walk, suggesting that the market of the microfinance investment funds is not efficient. This result is not affected by changes in either empirical techniques or sample periods.efficient market hypothesis, microfinance investment, variance ratio test

Panel cointegration analysis of the Fisher effect: Evidence from the US, the UK, and Japan

This paper analyzes the Fisher effect using a panel of monthly data from January 1990 to December 2010 for three major countries: the United States, the United Kingdom, and Japan. Our empirical results contribute to the existing empirical literature in two ways. First, the study conducts panel cointegration tests and estimation. Second, it examines the validity of the Fisher hypothesis using short-term and long-term nominal interest rates. The empirical results show that the full Fisher effect holds from January 1990 to December 2010.Fisher effect, panel cointegration test, dynamic ordinary least squares, fully modified ordinary least squares

Formal Employment, Informal Employment and Income Differentials in Urban China

Oaxaca’s study (1973), along with the China Health and Nutrition Survey (CHNS) questionnaire (2004 and 2006 pooling data), is used as the basis for this study in estimating the formal-informal employment hourly income differential, as well as the formal and informal male-female employment hourly income differential in urban China. The results indicate that differences in the characteristics between formal and informal employment account for a much higher percentage of the hourly income differential than do discrimination. In addition, ignoring the sample selection bias, one finds the formal male-female, the informal male-female hourly income differential and the degree of discrimination against informal women’s employment will be overestimated; conversely, the degree of discrimination against formal women’s employment will be underestimated.formal employment; informal employment; income differentials; Chinese labor market

Does Ensemble Learning Always Lead to Better Forecasts?

Ensemble learning is a common machine learning technique applied to business and economic analysis in which several classifiers are combined using majority voting for better forecasts as compared to those of individual classifier. This study presents a counterexample, which demonstrates that ensemble learning leads to worse classifications than those from individual classifiers, using two events and three classifiers. If there is an outstanding classifier, we should follow its forecast instead of using ensemble learning

An Empirical Analysis of FDI Competitiveness in Sub-Saharan Africa and Developing Countries

This paper empirically analyzes the determinants of foreign direct investment for Sub-Saharan African countries and other some developing countries. Our results suggest that both productivity-related policy and exchange rate policy can be effective in sharpening FDI competitiveness, i.e., in attracting foreign investments.