Shadow Banking Credit Intermediation： Determinants of Default Risks in Securitization and Collateralization

The growth in shadow banking system over the past few years is acknowledged as the key risk to Malaysia＇s financial stability. This is because that it is associated with growth in the household debts extended by the shadow banks. In line with initiatives by the Bank Negara Malaysia （the Central Bank of Malaysia） to enhance surveillance on the activities of the shadow banks in Malaysia, this study attempts to examine the determinants of default risks of shadow banks restricting to focus on their two main activities： securitization and collateralization. The results provide empirical evidence that future methodology to examine the systemic risks in the shadow banking system may need to account for additional explanatory variables that measure collateralized assets that are being intermediated.     

Can innovation shocks determine CO2 emissions (CO2e) in the OECD economies? A new perspective

ABSTRACT

This study has attempted to address prior knowledge gaps in the environmental economics literature by integrating the innovation shocks into the Environment Kuznets Curve (EKC) equation for twenty-six OECD economies using data from 1990 to 2014. Foreign direct investment (FDI), exports (EXP), renewable energy consumption (REC), and GDP per capita were included as control variables. The results from multiple empirical analyses indicated that positive shocks to innovation improve, but the negative shocks disrupt environmental quality. Data analyses also showed that a positive correlation exists between income per capita of OECD economies. From the negative coefficient of income per capita (squared) and the existence of a negative nexus between FDI and CO2e, both the EKC and the Pollution Halo Hypothesis (PHH) were confirmed in sampled economies, respectively. The paper offers empirical support for the favourable impacts of REC on the quality of the environment and calls for the adoption of innovation shocks as a policy instrument to formulate better environmental policies for a sustainable future.     

Financial liberalization and firms’ capital structure adjustments evidence from Southeast Asia and South America

This paper investigates the impact of financial liberalization on the adjustment of debt ratios in 12 emerging markets using firm-level data from 1991 to 2004. The results support the central hypothesis of this paper that adjustment costs are important in explaining firms’ adjustment toward their debt ratio targets. Our results show that deviations from targets are halved within 1.09 years in South America and 1.19 years in Southeast Asia, suggesting speed of adjustment is relatively faster in South American countries than Southeast Asian countries. Furthermore, our results show that after full liberalization those countries where rule of law and creditors rights were properly enforced, firms had higher adjustment speed compared to those countries where such enforcement was not present.The estimated adjustment coefficients imply that on average firms’ adjustment speeds have increased in all South American countries over the period of financial liberalization. On the contrary, firms’ adjustment speeds did not increase in Southeast Asian countries, reflecting the uneven effect of liberalization on the firms’ financing behaviour in Asian countries. There was a significant reduction in time (in years) taken to half the gap between actual debt ratios and targets only in Pakistan and South Korea. This finding supports the idea of uncertain impact of financial liberalization programs on the domestic financial markets in those emerging markets which started opening up their market and integrating with the rest of the world latter than others. These findings have significant implications for the sequence of banking sector liberalization in the emerging markets.     

The Worldwide Movement in Private Universities: Revolutionary Growth in Post-Secondary Higher Education

The end of the Cold War, which resulted from the collapse of communism and the spread of free market ideas in the former Soviet Union, China, and nations in Eastern Europe, has brought about many dramatic and momentous changes on the world scene. One remarkable development not widely recognized outside specialized academic circles is the emergence of new institutions of higher learning in the private sector of previously command economies and also in many developing countries that had been wedded to a culture of socialism for decades. The “privatization” of higher education is by all accounts a global phenomenon. Very few systematic studies of these new trends in private post‐secondary education exist to date, although the impact of this development could be far‐reaching not only for higher education but also for the social and economic development of many societies in the world. In this paper we attempt to analyze the phenomenon of new private universities in non‐Western nations, focusing on the developing world in general, and Asia in particular. What missions have these institutions chosen? Which models are these institutions following? What challenges do they face? How are they coping with their relationship to existing public universities? How are they dealing with tuition and budgetary issues? What sources of funding are they tapping into? How are they dealing with issues of equity, excellence, and access? In the composition of their faculty, student body, and curriculum, are these institutions sufficiently international? How are the funding institutions and universities in the West helping these fledgling universities? Are these trends expected to accelerate in the future? We attempt to answer these questions within the context of a few case studies that reflect the breadth and diversity of this revolutionary growth in post‐secondary higher education.     

Technik für ein langes Leben

Megatrend Ambient Assisted Living - Im Jahr 2035 wird in Deutschland jeder dritte Mensch ?lter sein als 60 Jahre. Die Nachfrage nach Dienstleistungen und unterstützenden Systemen wird steigen. Technische Assistenzsysteme für Pflegende, Pflegebedürftige und deren Angeh?rige sollen das Leben im Alter sicherer und bequemer machen.     

Agricultural productivity and natural resource use in southern Africa

This paper examines the natural resource status of southern Africa and analyzes the critical linkages between the performance of southern African agriculture and natural resource use patterns. The implication of on-going natural resource use trends on poverty, food insecurity, and environmental degradation are also analyzed. The challenges that must be addressed including, how best to intensify agricultural production, the types of technologies to promote and the imperatives of production efficiency and intra-regional trade are examined. The paper concludes with some suggestions on how best to proceed in the future to be able to successfully address the challenges identified.     

The puzzle of sharecropping: A survey of theories

The geographically pervasive and historically tenacious institution of sharecropping has always been a fruitful source of great economic controversies. While the earlier writings were almost universal in their disapproval of sharecropping (and seemed to ascribe little or no rationale for the persistence of it), an important characteristic of recent writings has been to uphold a plurality of views regarding the virtues of this institution. Not only have the recent papers been quite successful in highlighting the basic rationale behind the continuance of this somewhat enigmatic institution, they have addressed themselves to a number of important issues hitherto unexplored. Many strands of recent theoretical analyses have been brought to bear on the analysis of these problems, ranging from the simple competitive model to the esoteric theory of core, from the tricky Coase theorem of property rights to the intricate theory of portfolio behaviour, the principal-agent formulation and recent advances from the economics of information. Based on the present survey of theories, it seems fair to conclude that these recent sophisticated models have been quite illuminating and hold promise of further insights in future.     

Gender discrimination in education,health, and labour market: a voice for equality

The objective of the study is to examine the impact of gender discrimination in education, health, and labour market on economic growth in a panel of 20 high-income OECD countries for the period of 1980–2015. In addition, the study proposed an index of pro-equality growth, which is flared with education, health, and labour market initiatives to promote economic growth. The results show that gender parity index for educational attainment significantly promotes economic growth while health and labour market required substantial policy reforms to reduce health and labour market inequalities to sustain long-term economic growth. The results classified three countries as highly equitable growth, one country for equitable growth, two countries are moderate growth, four countries are less equitable growth while remaining 10 countries fall in the category of inequitable growth, where greater inequality promotes economic growth on the cost of education, health, and labour market inequalities.