Abstract: This study is carried out to provide an insight into the analysis of the impact of selected macro-economic variables on gross fixed capital formation in Libya using annual data over the period (1970-2010). The importance of this study comes from the ability to show the relative important factors that impact the Libyan gross fixed capital formation. This understanding would give indications to decision makers on which policy they must focus to stimulate the economy. An Autoregressive Distributed Lag (ARDL) modeling process is employed to investigate the impact of the Gross Domestic Product, Monetary Base and Trade Openness on Gross Fixed Capital Formation in Libya. The results of this study reveal that there is an equilibrium relationship between capital formation and its determinants. The results also indicate that GDP and trade openness largely explain the pattern of capital formation in Libya. The findings and recommendations provide vital information relevant for policy formulation and implementation aimed to improve capital formation in Libya.
Abstract: Urban planning is the need of the hour in a rapidly developing county like India. In essence, urban planning enhances the quality of land at a reasonable cost. Naya (New) Raipur is the new planned capital of the Indian state of Chhattisgarh, and is one of India’s few planned cities. Over the next decade it will drastically change the landscape of the state of Chhattisgarh. This new planned development is quintessential in growing this backward region and providing for future infrastructure. Key questions that arise are: How are people living in the surrounding region of New Raipur affected by its development? Are the affected people satisfied with compensation and rehabilitation that has been provided by the New Raipur Development Authority? To answer these questions, field research study in the form of questionnaires, interviews and site visits was conducted. To summarize the findings, while a majority of the surveyed population was dissatisfied with the rehabilitation and compensation provided by the New Raipur Development Authority, they were very positive about the success of the new development. Most thought that the new city would help their careers, improve job opportunities, improve prospects for their future generations, and benefit society as a whole.
To improve rehabilitation schemes for the future, the reasons for the negative sentiment brewing amongst the villagers regarding the monetary compensation was investigated. Most villagers deemed the monetary compensation to be lacking as they had squandered their financial windfall already. With numerous interviews and site visits, it was discovered that the lump sum form of monetary compensation was to blame. With a huge sum of money received at once and a lack of financial education, many villagers squandered this newly gained money on unnecessary purchases such as alcohol and expensive vehicles without investing for the long run in farmland and education for their children. One recommendation proposed to the New Raipur Development Authority (NRDA) for future monetary compensation design in times of rehabilitating people was to provide payments in installments rather than lump sums and educate the people about investing the compensation money wisely. This would save them from wasting money they receive and the ensuing dissatisfaction of squandering that money.
Abstract: Most empirical studies have analyzed how liquidity risks faced by individual institutions turn into systemic risk. Recent banking crisis has highlighted the importance of grasping and controlling the systemic risk, and the acceptance by Central Banks to ease their monetary policies for saving default or illiquid banks. This last point shows that banks would pay less attention to liquidity risk which, in turn, can become a new important channel of loss. The financial regulation focuses on the most important and “systemic” banks in the global network. However, to quantify the expected loss associated with liquidity risk, it is worth to analyze sensitivity to this channel for the various elements of the global bank network. A small bank is not considered as potentially systemic; however the interaction of small banks all together can become a systemic element. This paper analyzes the impact of medium and small banks interaction on a set of banks which is considered as the core of the network. The proposed method uses the structure of agent-based model in a two-class environment. In first class, the data from actual balance sheets of 22 large and systemic banks (such as BNP Paribas or Barclays) are collected. In second one, to model a network as closely as possible to actual interbank market, 578 fictitious banks smaller than the ones belonging to first class have been split into two groups of small and medium ones. All banks are active on the European interbank network and have deposit and market activity. A simulation of 12 three month periods representing a midterm time interval three years is projected. In each period, there is a set of behavioral descriptions: repayment of matured loans, liquidation of deposits, income from securities, collection of new deposits, new demands of credit, and securities sale. The last two actions are part of refunding process developed in this paper. To strengthen reliability of proposed model, random parameters dynamics are managed with stochastic equations as rates the variations of which are generated by Vasicek model. The Central Bank is considered as the lender of last resort which allows banks to borrow at REPO rate and some ejection conditions of banks from the system are introduced.
Liquidity crunch due to exogenous crisis is simulated in the first class and the loss impact on other bank classes is analyzed though aggregate values representing the aggregate of loans and/or the aggregate of borrowing between classes. It is mainly shown that the three groups of European interbank network do not have the same response, and that intermediate banks are the most sensitive to liquidity risk.
Abstract: Islamic institutions in Malaysia play a variety of
socioeconomic roles such as poverty alleviation. To perform this role,
these institutions face a major task in identifying the poverty group.
Most of these institutions measure and operationalize poverty from
the monetary perspective using variables such as income, expenditure
or consumption. In practice, most Islamic institutions in Malaysia use
the monetary approach in measuring poverty through the
conventional Poverty Line Income (PLI) method and recently, the
had al kifayah (HAK) method using total necessities of a household
from an Islamic perspective. The objective of this paper is to present
the PLI and also the HAK method. This micro-data study would
highlight the similarities and differences of both the methods.A
survey aided by a structured questionnaire was carried out on 260
selected head of households in the state of Selangor. The paper
highlights several demographic factors that are associated with the
three monetary indicators in the study, namely income, PLI and
HAK. In addition, the study found that these monetary variables are
significantly related with each other.
Abstract: Grid environments consist of the volatile integration
of discrete heterogeneous resources. The notion of the Grid is to
unite different users and organisations and pool their resources into
one large computing platform where they can harness, inter-operate,
collaborate and interact. If the Grid Community is to achieve this
objective, then participants (Users and Organisations) need to be
willing to donate or share their resources and permit other
participants to use their resources. Resources do not have to be
shared at all times, since it may result in users not having access to
their own resource. The idea of reward-based computing was
developed to address the sharing problem in a pragmatic manner.
Participants are offered a reward to donate their resources to the
Grid. A reward may include monetary recompense or a pro rata share
of available resources when constrained. This latter point may imply
a quality of service, which in turn may require some globally agreed
reservation mechanism. This paper presents a platform for economybased
computing using the WebCom Grid middleware. Using this
middleware, participants can configure their resources at times and
priority levels to suit their local usage policy. The WebCom system
accounts for processing done on individual participants- resources
and rewards them accordingly.
Abstract: The present disposal routes of sewage sludge represent a critical environmental issue in Egypt. Recently, there has been an increasing concern about sewage sludge management due to the environmental risks, which resulted from the fast expansion of wastewater treatment plants without equal attention in dealing with the produced sludge. This paper discusses the current situation of sewage sludge management in Egypt presenting a brief overview of the existing wastewater treatment plants, sludge production and characteristics as well as options of beneficial use and potential demand of sewage sludge under Egyptian conditions. The characteristics of sewage sludge are discussed considering the results of own sampling and analysis as well as previous studies. Furthermore, alternative treatment scenarios for sewage sludge, which have been recently developed in Egypt, are discussed and perspectives for a sustainable agricultural use are outlined.
Abstract: The building of a factory can be a strategic investment
owing to its long service life. An evaluation that only focuses, for
example, on payments for the building, the technical equipment of
the factory, and the personnel for the enterprise is – considering the
complexity of the system factory – not sufficient for this long-term
view. The success of an investment is secured, among other things,
by the attainment of nonmonetary goals, too, like transformability.
Such aspects are not considered in traditional investment calculations
like the net present value method. This paper closes this gap with the
enhanced economic evaluation (EWR) for factory planning. The
procedure and the first results of an application in a project are
presented.
Abstract: The wisest economic decision of United States in the
20th century was establishing the favorable international monetary
system, and capturing the leadership position in it. This decision gave
economic hegemony to the US for the next more than 7 decades. The
continuation of this hegemony till the next decade seems difficult as
the US economy is under continuous streams of recessions since
2007. On the other hand, Chinese economy is progressing with a
very fast speed and is estimated to pass the US economy till 2025, in
various aspects. Will the US be able to continue its leadership in the
IMS? Will China replace US in the international monetary system?
The answers to these questions have been explored by comparing the
economic competitiveness of US and China, with respect to each
other. The paper concludes that the change in global economic
environment will compel US to share the leadership of international
monetary system with China. This sharing will solve most problems
of the current IMS, but will also birth some new problems.
Abstract: According to the interaction of inflation and
unemployment, expectation of the rate of inflation in Croatia is
estimated. The interaction between inflation and unemployment is
shown by model based on three first-order differential i.e. difference
equations: Phillips relation, adaptive expectations equation and
monetary-policy equation. The resulting equation is second order
differential i.e. difference equation which describes the time path of
inflation. The data of the rate of inflation and the rate of
unemployment are used for parameters estimation. On the basis of
the estimated time paths, the stability and convergence analysis is
done for the rate of inflation.
Abstract: This study links up the theories of social psychology,
economics and sport management to assess the impact of sport
participation on subjective well-being (SWB) and use a simple statistic
method to estimate the relative monetary value that sport participation
derives SWB for Taiwan-s college students. By constructing proper
measurements on sport participation and SWB respectively, a
structural equation model (SEM) is developed to perform a
confirmatory factory analysis, and the causal relationship between
sport participation and SWB as well as the effect of the demographic
variables on these two concepts are also discussed.
Abstract: Despite many success stories of manufacturing safety, many organizations are still reluctant, perceiving it as cost increasing and time consuming. The clear contributor may be due to the use of lagging indicators rather than leading indicator measures. The study therefore proposes a combinatorial model for determining the best safety strategy. A combination theory and cost benefit analysis was employed to develop a monetary saving / loss function in terms value of preventions and cost of prevention strategy. Documentations, interviews and structured questionnaire were employed to collect information on Before-And-After safety programme records from a Tobacco company between periods of 1993-2001(for pre-safety) and 2002-2008 (safety period) for the model application. Three combinatorial alternatives A, B, C were obtained resulting into 4, 6 and 4 strategies respectively with PPE and Training being predominant. A total of 728 accidents were recorded for a 9 year period of pre-safety programme and 163 accidents were recorded for 7 years period of safety programme. Six preventions activities (alternative B) yielded the best results. However, all the years of operation experienced except year 2004. The study provides a leading resources for planning successful safety programme
Abstract: Prior to 1975, women in Laos suffered from having
reduced levels of power over decision-making in their families and in
their communities. This has had a negative impact on their ability to
develop their own identities. Their roles were identified as being
responsible for household activities and making preparations for their
marriage. Many women lost opportunities to get educated and access
the outdoor work that might have empowered them to improve their
situations. So far, no accurate figures of either emigrants or return
migrants have been compiled but it appears that most of them were
women, and it was women who most and more frequently remitted
money home. However, very few recent studies have addressed the
relationship between remittances and the roles of women in Laos.
This study, therefore, aims at redressing to some extent the
deficiencies in knowledge. Qualitative techniques were used to gather
data, including individual in-depth interviews and direct observation
in combination with the content analysis method. Forty women in
Vientiane Municipality and Savannakhet province were individually
interviewed. It was found that the monetary remittance was typically
used for family security and well-being; on fungible activities; on
economic and business activities; and on community development,
especially concerning hospitality and providing daily household
necessities. Remittances played important roles in improving many
respondents- livelihoods and positively changed their identities in
families and communities. Women became empowered as they were
able to start commercial businesses, rather than taking care of (just)
housework, children and elders. Interviews indicated that 92.5% of
the respondents their quality of lives improved, 90% felt happier in
their families and 82.5% felt conflicts in their families were reduced.
Abstract: Basel III (or the Third Basel Accord) is a global
regulatory standard on bank capital adequacy, stress testing and
market liquidity risk agreed upon by the members of the Basel
Committee on Banking Supervision in 2010-2011, and scheduled to
be introduced from 2013 until 2018. Basel III is a comprehensive set
of reform measures. These measures aim to; (1) improve the banking
sector-s ability to absorb shocks arising from financial and economic
stress, whatever the source, (2) improve risk management and
governance, (3) strengthen banks- transparency and disclosures.
Similarly the reform target; (1) bank level or micro-prudential,
regulation, which will help raise the resilience of individual banking
institutions to periods of stress. (2) Macro-prudential regulations,
system wide risk that can build up across the banking sector as well
as the pro-cyclical implication of these risks over time. These two
approaches to supervision are complementary as greater resilience at
the individual bank level reduces the risk system wide shocks.
Macroeconomic impact of Basel III; OECD estimates that the
medium-term impact of Basel III implementation on GDP growth is
in the range -0,05 percent to -0,15 percent per year. On the other hand
economic output is mainly affected by an increase in bank lending
spreads as banks pass a rise in banking funding costs, due to higher
capital requirements, to their customers. Consequently the estimated
effects on GDP growth assume no active response from monetary
policy. Basel III impact on economic output could be offset by a
reduction (or delayed increase) in monetary policy rates by about 30
to 80 basis points. The aim of this paper is to create a framework
based on the recent regulations in order to prevent financial crises.
Thus the need to overcome the global financial crisis will contribute
to financial crises that may occur in the future periods. In the first
part of the paper, the effects of the global crisis on the banking
system examine the concept of financial regulations. In the second
part; especially in the financial regulations and Basel III are analyzed.
The last section in this paper explored the possible consequences of
the macroeconomic impacts of Basel III.
Abstract: The strong international competition as the factor of rising economic development efficiency should not turn into destructive force for models of social orientation. What result Europe received from the accelerated integration without a long transition period of the accepted countries. Correlative relationship between the research and development expenditure and labor productivity, inflation and the rate economy's growth of the USA and the euro zone, employment and gross value added between Old and New Europe is analyzed in this article. The article estimates the differences in economic growth of Old and New Europe. Correlation rate between cycles of the euro area and the countries of Central and the Eastern Europe very much differs, though some of these countries have high correlation as members of the Economic and Monetary Union. Besides, the majority of the countries of Central and the Eastern Europe does not correspond to criteria of an optimum currency area.
Abstract: The European countries that during the past two
decades based their exchange rate regimes on currency board
arrangement (CBA) are usually analysed from the perspective of
corner solution choice’s stabilisation effects. There is an open
discussion on the positive and negative background of a strict
exchange rate regime choice, although it should be seen as part of the
transition process towards the monetary union membership. The
focus of the paper is on the Baltic countries that after two decades of
a rigid exchange rate arrangement and strongly influenced by global
crisis are finishing their path towards the euro zone. Besides the
stabilising capacity, the CBA is highly vulnerable regime, with
limited developing potential. The rigidity of the exchange rate (and
monetary) system, despite the ensured credibility, do not leave
enough (or any) space for the adjustment and/or active crisis
management. Still, the Baltics are in a process of recovery, with fiscal
consolidation measures combined with (painful and politically
unpopular) measures of internal devaluation. Today, two of them
(Estonia and Latvia) are members of euro zone, fulfilling their
ultimate transition targets, but de facto exchanging one fixed regime
with another.
The paper analyses the challenges for the CBA in unstable
environment since the fixed regimes rely on imported stability and
are sensitive to external shocks. With limited monetary instruments,
these countries were oriented to the fiscal policies and used a
combination of internal devaluation and tax policy measures. Despite
their rather quick recovery, our second goal is to analyse the long
term influence that the measures had on the national economy.
Abstract: While the form of crises may change, their essence
remains the same (such as a cycle of abundant liquidity, rapid credit
growth, and a low-inflation environment followed by an asset-price
bubble). The current market turbulence began in mid-2000s when the
US economy shifted to imbalanced both internal and external
macroeconomic positions. We see two key causes of these problems
– loose US monetary policy in early 2000s and US government
guarantees issued on the securities by government-sponsored
enterprises what was further fueled by financial innovations such as
structured credit products. We have discovered both negative and
positive lessons deriving from this crisis and divided the negative
lessons into three groups: financial products and valuation, processes
and business models, and strategic issues. Moreover, we address key
risk management lessons and exit strategies derived from the current
crisis and recommend policies that should help diminish the negative
impact of future potential crises.
Abstract: This paper tries to shed light on the existence of a bank lending channel (BLC) in South Eastern European countries (SEE). Based on a VAR framework we test the responsiveness of credit supply to monetary policy shocks. By compiling a new data set and using the reserve requirement ratio, among others, as the policy instrument we measure the effectiveness of the BLC and the buffering effect of the banks in the SEE countries. The results indicate that loan supply is significantly affected by shifts in monetary policy, when demand factors are controlled. Furthermore, by analyzing the effect of the Greek banks in the region we conclude that Greek banks do buffer the negative effects of monetary policy transmission. By having a significant market share of the SEE-s banking markets we argue that Greek banks influence positively the economic growth of SEE countries.
Abstract: The current situation in the eurozone raises a number of topics for discussion and to help in finding an answer to the question of whether a common currency is a more suitable means of coping with the impact of the financial crisis or whether national currencies are better suited to this. The economic situation in the EU is now considerably volatile and, due to problems with the fulfilment of the Maastricht convergence criteria, it is now being considered whether, in their further development, new member states will decide to distance themselves from the euro or will, in an attempt to overcome the crisis, speed up the adoption of the euro. The Czech Republic is one country with little interest in adopting the euro, justified by the fact that a better alternative to dealing with this crisis is an independent monetary policy and its ability to respond flexibly to the economic situation not only in Europe, but around the world. One attribute of the crisis in the Czech Republic and its mitigation is the freely floating exchange rate of the national currency. It is not only the Czech Republic that is attempting to alleviate the impact of the crisis, but also new EU member countries facing fresh questions to which theory have yet to provide wholly satisfactory answers. These questions undoubtedly include the problem of inflation targeting and the choice of appropriate instruments for achieving financial stability. The difficulty lies in the fact that these objectives may be contradictory and may require more than one means of achieving them. In this respect we may assume that membership of the euro zone might not in itself mitigate the development of the recession or protect the nation from future crises. We are of the opinion that the decisive factor in the development of any economy will continue to be the domestic economic policy and the operability of market economic mechanisms. We attempt to document this fact using selected countries as examples, these being the Czech Republic, Poland, Hungary, and Slovakia.