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Determinants of Ethiopian Flower Export Performance: The Case of Gravity Model Application
Issue:
Volume 7, Issue 5, October 2021
Pages:
101-110
Received:
10 May 2021
Accepted:
18 August 2021
Published:
23 September 2021
Abstract: In contemporary economic activities, international trade is evolved from perfect protection to perfect free global trade among countries to bring balanced. International trade in general and export in particular is the most important economic activities to secure economic growth and development. However, sub-Saharan African countries including Ethiopia exports agricultural products balky in volume low in value leads to low performance and also low in diversity. To improve Ethiopian export performance, the government has been taking different policy options among them is export diversification. Flower commodity export is one of the diversification policy options. Each commodity export has its own constraints and opportunities affecting its export performance. The objective of this paper was to identify factors affecting flower export performance in the Ethiopian economy using five years balanced panel data ranging between 2010 and 2014 to Ethiopian flower importing countries. The result of the statistical analysis indicated that even though there is variation among years, the average five years export performance was about $ 4.79 million from exporting about 96.48 tons of flowers. The result of the gravity model econometric regression results revealed that domestic gross product (GDP) and the domestic population growth had positive effects while the exchange rate had a negative effect on the Ethiopian export performance dynamics. The result, it is suggests that all the factors affecting Ethiopian flower export performance are domestic factors or supply side factors. Therefore, the export economic policy should focus on boosting the GDP, efficient and effectiveness of human power through education and training, and stabilizing the exchange rate to enhance the Ethiopian flower export performance in particular and national export performance in general.
Abstract: In contemporary economic activities, international trade is evolved from perfect protection to perfect free global trade among countries to bring balanced. International trade in general and export in particular is the most important economic activities to secure economic growth and development. However, sub-Saharan African countries including Ethi...
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Investigating the Relationship Between Financial Stress Index and MENA Stock Markets Performance
Hayet Soltani,
Mouna Boujelbene Abbes,
Abderrahmen Aloulou
Issue:
Volume 7, Issue 5, October 2021
Pages:
111-122
Received:
16 July 2021
Accepted:
15 September 2021
Published:
27 September 2021
Abstract: This article assesses the effect of financial stress caused by the great depression, 2008–2009, Oil crises of 2014–2015 accompanied by the sharp fall in the oil prices and the Arab Spring on the co-movements and volatility spillovers of aggregated Financial Stress Indices for eleven MENA countries. It is reveals that the extreme values of the FSIs are generally connected with well-known past financial stress episodes. We also found, for MENA Ex GCC countries, a weak interconnection between these countries while the GCC countries are more connected. Using a Vector auto-regression (VAR) estimation framework, we showed that the performance of the stock indices depends positively on its past and also, the stress index positively depends on his past delayed either by one or two periods. While, the study of impulse response functions shows that a positive shock on the financial stress index translates into a negative effect on stock market performance during the first year. This effect then disappears in slow motion before finding its long-term level.
Abstract: This article assesses the effect of financial stress caused by the great depression, 2008–2009, Oil crises of 2014–2015 accompanied by the sharp fall in the oil prices and the Arab Spring on the co-movements and volatility spillovers of aggregated Financial Stress Indices for eleven MENA countries. It is reveals that the extreme values of the FSIs ...
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The Nexus Among Non-performing Loans, Lending Rates and Financial Performance of Banks in Ghana
Amos Ninson,
Augustina Sidza,
Dominic Ampah
Issue:
Volume 7, Issue 5, October 2021
Pages:
123-132
Received:
25 August 2021
Accepted:
24 September 2021
Published:
12 October 2021
Abstract: The main purpose of the study was to examine the relationship among non-performing loans, Commercial Banks’ lending rate and financial performance of Commercial Banks in Ghana. The time series design was used along with the quantitative research approach. Secondary data on the selected variable and some control variables were accessed from the economic and monetary data base of the Central Bank of Ghana from 2006 to 2019 and used for the analysis. Both theoretical and empirical literature was reviewed to create a research gap for the study. Time series properties of the variables such stationarity and descriptive were done to assess the stability of the time series variables. The Augmented Dickey-Fuller unit-root test was used for the stationarity test since the time series plots indicated no possibility of serious structural breaks. Return on assets before tax, return on equity after tax, Commercial Banks interest rate, inflation and inter-banks interest rate were found to be significant determinants of Non-performing loans in the financial sector of Ghana. It was concluded that simultaneous relationships exist among the level of non-performing loans, Commercial Banks’ lending rate and financial performance of Banks in Ghana, hence anyone of them could serve as a lead variable or policy variable in ensuring a stable financial system in Ghana. It was recommended that the management of commercial banks must exploit other avenues of generating income such as direct project financing among others and reduce reliance on interest payment through increase in interest charges.
Abstract: The main purpose of the study was to examine the relationship among non-performing loans, Commercial Banks’ lending rate and financial performance of Commercial Banks in Ghana. The time series design was used along with the quantitative research approach. Secondary data on the selected variable and some control variables were accessed from the econ...
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