Openness and the speed of adjustment in the money market

In an effort to fight inflation or recession, central banks manipulate the money supply. The speed with which a change in money supply could affect price level and the level of production differs from one country to another, depending on rigidities. The main purpose of this paper is to show that the adjustment speed among the mentioned macro variables is higher in countries that are more open. Using the bounds-testing approach, a relatively new approach to cointegration and error-correction modeling, we estimate the speed of adjustment in the money market in 28 developing countries. A simple cross-sectional model is utilized in which the measure of adjustment speed is related to three different measures of openness. Regardless of the measure used, a significant and positive relationship exists between adjustment speed and the measure of openness.     

Non-profit organizations,entrepreneurship, social capital and economic growth

Traditional economic growth literature focuses mainly on the neoclassical approach. According to this view, firms try to maximize their benefits so that there is no place for non-profit organizations (NPOs). However, the activity of NPOs has a higher relevance in society, and it is necessary to analyze its effects on economic growth. These effects are not direct, but occur through other variables that directly promote economic growth, such as entrepreneurship activity and human capital, and through the improvement of education. We engage in an empirical analysis of these issues using data from 11 countries.     

Broadband penetration,financial development,and economic growth nexus: evidence from the Arab League countries

This paper examines the mutual relationship between broadband penetration, financial development, and economic growth in the 22 Arab League countries for the period between 2001 and 2013. Financial development (represented by broad money supply, claims on the private sector, domestic credit to the private sector, domestic credit provided by the banking sector, market capitalization, turnover ratio, and traded stocks) is assessed both individually, and by a composite index. Our results reveal that there is a long-run equilibrium relationship between broadband penetration, financial development, and economic growth. Additionally, we use a panel vector autoregression model to reveal the nature of Granger causality between the covariates. The most important insight of this study is the presence of bidirectional causality from economic growth to broadband penetration in the long run. In addition, we find that financial development together with broadband penetration Granger-cause economic growth in the long run.     

Ex-post evaluation of scenarios: the case of nanotechnology societal impacts

Scenario development is one of the popular methods of futures studies. There has been a lot of attention paid to different methods of scenario writing in theoretical literature; but what is important is to evaluate the scenarios which has not been a matter of comprehensive study heretofore. In this paper, we have carried out a comprehensive study in this regard. Accordingly, evaluation has been divided into three categories: ex-ante evaluation, mid-term evaluation and ex-post evaluation. Ex-ante evaluation is carried out when the scenario is generating; mid-term evaluation is carried out when the scenarios are transferring; and ex-post evaluation is being done after the transfer of scenarios. It should be noted that main purpose for ex-ante evaluation is considered “effectiveness”, for mid-term evaluation “relevance”, and for ex-post evaluation “the impact”. The outstanding part of this paper is the ex-post evaluation of scenarios for societal impact of nanotechnology, (which is carried out in accordance with a former paper) whose corresponding National Iranian Nanotechnology Initiative (NINI) time began approximately 10 years ago.     

Asymmetric effects of exchange rate changes on the demand for money in China

In order to account for currency substitution, the majority of recent studies relating to the specification of the demand for money include the exchange rate as another determinant of the demand for money. However, those who have estimated the demand for money in China have been unable to find any significant effects of exchange rate changes on the demand for money by the Chinese. We show that this is due to the assumption that exchange rate changes have symmetric effects. Once depreciations are separated from appreciations of the yuan, those exchange rate changes are shown to have significant effects on the demand for money in China, but in an asymmetric manner.     

Causal nexus between economic growth,banking sector development,stock market development,and other macroeconomic variables: The case of ASEAN countries

This paper examines the relationship between banking sector development, stock market development, economic growth, and four other macroeconomic variables in ASEAN countries for the period 1961–2012. Using principal component analysis for the construction of the development indices and a panel vector auto-regressive model for testing the Granger causalities, this study finds the presence of both unidirectional and bidirectional causality links between these variables. The study contributes to understanding the importance of the interrelationship between the variables and combines the different strands of the literature. It also contributes to the literature by focusing on a group of countries that have not been studied before. One particular policy recommendation is to make the banking sector more accessible for those country's inhabitants that do not have bank accounts. Another policy recommendation is to nurture stock market development, which will facilitate the increased raising of capital for investment purposes to enhance economic growth.     

Do exchange rate changes have symmetric or asymmetric effects on the demand for money in Turkey?

As a result of the research conducted by Nobel Laureate Robert Mundell (1963), most studies estimating the demand for money today do include the exchange rate in their specification to account for currency substitution. Previous studies that did this for the Turkish demand for money assumed that exchange rate changes do have symmetric effects on the demand for money in Turkey. In this article, we question this assumption. By using the nonlinear ARDL approach, we show that indeed exchange rate changes do have short-run and long-run asymmetric effects on the M1 demand for money. Introducing nonlinearity also yields a stable money demand.     

Redistributive choices and increasing income inequality: experimental evidence for income as a signal of deservingness

We explore the relation between redistribution choices, source of income, and pre-redistribution inequality. Previous studies find that when income is earned through work there is less support for redistribution than when income is determined by luck. Using a lab experiment, we vary both the income-generating process (luck vs. performance) and the level of inequality (low vs. high). We find that an increase in inequality has less impact on redistribution choices when income is earned through performance than when income results from luck. This result is likely explained by individuals using income differences as a heuristic to infer relative deservingness. If people believe income inequality increases as a result of performance rather than luck, then they are likely to believe the poor deserve to stay poor and the rich deserve to stay rich.     

Impact of tourism on CO2 emission: evidence from Pakistan

This study investigates the carbon dioxide (CO₂) emission–tourist arrival–growth in Pakistan by taking time series data from the period of 1972 to 2013. The study applied three approaches of co-integration (autoregressive distributed lag bounds test, Johansen and Juselius and Gregory and Hansen structural break test) to confirm the valid long-run positive interaction between CO₂ emission and tourist arrivals. The robustness of cointegrating vectors is further checked using fully modified ordinary least square and dynamic ordinary least square tests and results validate the long-run coefficients. The results of variance decomposition method exhibit the uni-directional causality between CO₂ emission and tourist arrivals running from tourist arrival to CO₂ emission. It was therefore noted that policies which moderate the influence of tourism development to emission are necessary for reducing the harmful effect of tourist activities and also to increase the impact of tourism upon the economic growth. The study may guide policy-makers in formulating categorical energy and tourism development policies for sustainable growth for long periods.