International Journal of Economics and Financial Issues https://econjournals.com/index.php/ijefi <p><strong>International Journal of Economics and Financial Issues (IJEFI) </strong>is the international academic journal, and is a double-blind, peer-reviewed academic journal publishing high quality conceptual and measure development articles in the areas of economics, finance and related disciplines. The journal has a worldwide audience. The journal's goal is to stimulate the development of economics, finance and related disciplines theory worldwide by publishing interesting articles in a highly readable format. <br /><strong>ISSN:</strong> 2146-4138.</p> en-US ijefi@econjournals.com (Ilhan OZTURK) ijefi@econjournals.com (Ilknur Ozturk) Tue, 11 Jan 2022 09:30:44 +0000 OJS 3.3.0.8 http://blogs.law.harvard.edu/tech/rss 60 Analyzing the Impact of Foreign Remittances upon Poverty: A Case of Uzbekistan from Central Asia. https://econjournals.com/index.php/ijefi/article/view/11967 <p>Remittances have always played a central role in strengthening the economies of low-income and middle-income developing countries. The remittances have also provided a phenomenal support to the economy of Uzbekistan, which is the third leading recipient country of foreign remittances in the Central Asian region after Kyrgzstan and Tajikistan. There is a strong need to investigate the impact of foreign remittances upon poverty reduction in case of Uzbekistan. This study has empirically investigated the impact of remittances on poverty in Uzbekistan by taking the variables like remittances, poverty size, capital formation, per capita GDP, savings and unemployment for the period of 2008-2019. Ordinary Least Square Regression was applied, and the results show an insignificant relationship between foreign remittances and poverty reduction. The reason could be that remittances in Uzbekistan are not pro-poor as mostly the workers from the rich families migrate to Russia. Furthermore most of the migrant workers prefer to settle down in Russia along with their families.</p> Farrukh Nawaz Kayani Copyright (c) 2022 International Journal of Economics and Financial Issues https://econjournals.com/index.php/ijefi/article/view/11967 Tue, 11 Jan 2022 00:00:00 +0000 Is Home-Host Cultural Distance a Risk? Evidence from Outward Foreign Direct Investment by Chinese Enterprises https://econjournals.com/index.php/ijefi/article/view/12611 <p>Cultural distance is always regarded as a “risk” in the decision making of enterprises involved in the outward foreign direct investment (OFDI), however, investment is a powerful driver of productivity growth and increased innovation capacity of enterprises in both countries. Is cultural distance a “risk” ? Using Hofstede's indicators and the Kogut and Singh index (1988), this paper calculates the cultural distance based on six cultural dimensions and further examines the effect of cultural distance on the outward foreign direct investment by Chinese enterprises and its mediating effects on the role of other factors influencing the decisions of multinationals. The results indicate that there is a nonlinear effect of cultural distance and the mediating effect of cultural distance is negative.</p> Hang Su, Yao Fu Copyright (c) 2021 International Journal of Economics and Financial Issues https://econjournals.com/index.php/ijefi/article/view/12611 Tue, 11 Jan 2022 00:00:00 +0000 Investment Risk Tolerance amongst South African University Students in the Vaal Triangle Area https://econjournals.com/index.php/ijefi/article/view/11567 <p>Analysing students risk tolerance during the investor life cycle is imperative to students and financial planners alike, to facilitate the implementation of suitable investments and investment strategies. Students in universities do not have the required knowledge to invest and this is why an investment framework was created to assist, guide and inform students of what stage of the individual investor life cycle that they are in and suggest suitable investment strategies. The article implemented a quantitative approach, using secondary data analysis. The data used for the analysis is from a self-administered questionnaire in 2017 that was distributed to a sample of 396 students from two higher education institutions in the Vaal Triangle region. Two validated risk tolerance scales were used to analyse students risk tolerance levels. The objective of this paper was to determine the risk tolerance levels of students in the Vaal Triangle region. The two results from the 13-item scale and the single-item scale for measuring risk tolerance indicated that the students have a medium risk tolerance level.</p> Antonios Evangelou, Sune Ferreira-Schenk, Lorainne Ferreira, Elizabeth Bothma Copyright (c) 2022 International Journal of Economics and Financial Issues https://econjournals.com/index.php/ijefi/article/view/11567 Tue, 11 Jan 2022 00:00:00 +0000 The Quality Effect of Auditing on Tax Compliance: Evidence from Tunisian Context https://econjournals.com/index.php/ijefi/article/view/10917 <p>Taxation is the subject of complex and evolving regulations. it has become one of the major concerns of any business to better manage its finance, the responsible for corporate governance give an importance to the fiscal in the strategy and management of the company. In recent years, the importance of taxation in the financial and accounting environment is motivated to study the impact of control and transparency of infomation affected by audit quality. We study a sample of 19 companies between 2013 and 2017, the result shows that audit quality improves tax compliance in the Tunisian context while measuring tax evasion by the difference between the statutory tax rate and the effective tax rate. This study finds that tax evasion in Tunisian firms may have decreased with better audit quality.</p> Lynda Soltani Copyright (c) 2022 International Journal of Economics and Financial Issues https://econjournals.com/index.php/ijefi/article/view/10917 Tue, 11 Jan 2022 00:00:00 +0000 Does Economic Policy Uncertainty Affect Exchange Rate in China and Japan? Evidence from Threshold Cointegration with Asymmetric Adjustment https://econjournals.com/index.php/ijefi/article/view/11973 <p>In this article, we estimate the links between nominal exchange rates (JPY/USD and CNY/USD) and economic policy uncertainty (EPU) in China and Japan by employing monthly data during the period span from January 1997 to September 2020. The threshold cointegration approach focus in TAR, M-TAR, C-TAR and C-MTAR is used. Results indicate the evidence of asymmetric effect in the adjustment process to equilibrium and the M-TAR is the best model to detect threshold effect for the (CNY/USD-CNYEPU) pair and the C-TAR is the best model to detect threshold effect for the (JPY/USD-JPYEPU) pair.</p> <p> </p> Riadh El Abed, Zouheir Mighri, Abderrazek Ben Hamouda Copyright (c) 2021 International Journal of Economics and Financial Issues https://econjournals.com/index.php/ijefi/article/view/11973 Tue, 11 Jan 2022 00:00:00 +0000 Determining the Impact of Economic Factors to the Gross Domestic Product in Bangladesh https://econjournals.com/index.php/ijefi/article/view/12686 <p>Gross Domestic Product (GDP) is believed to be an indicator of a country’s economic condition. Bangladesh’s GDP increased at a pace of 8.15% in fiscal 2018-19 as per the base year 2005-06. By the year 2019, Bangladesh has become the seventh fastest-growing economy in the world. This paper used multiple regression analysis model for the macroeconomic factors. The aim of this study is to measure the effects of macroeconomic factors considering GDP as the dependent variables and inflation rate, import, and export are considered as independent. This paper represents that import and export are positively associated factors with GDP whereas inflation rate is a negatively associated factor. This study concluded with revealing the importance of conducting further study by considering more economic variables to measure the economic growth as a whole.</p> Mostofa Mahmud Hasan, B.M. Sajjad Hossain, Md. Abu Sayem Copyright (c) 2021 International Journal of Economics and Financial Issues https://econjournals.com/index.php/ijefi/article/view/12686 Tue, 11 Jan 2022 00:00:00 +0000 An Analysis of The Shadow Economy in Malta: A Currency Demand and MIMIC Model Approach https://econjournals.com/index.php/ijefi/article/view/11548 The paper applies two commonly used methods in the literature to estimate the shadow economy in Malta, the Currency Demand Approach and the Multiple Indicator Multiple Causes (MIMIC) model. Given the unobservable nature of the shadow economy, estimates are surrounded by a considerable degree of uncertainty. While these two methods differ somewhat on the historical evolution of the size of the Maltese shadow economy, which in turn can be traced back to their different underlying assumptions, both suggest that it has remained relatively stable over the last decade, standing at just below 21% of official GDP in 2019. Where possible, these estimates are compared to other studies on the same subject where we find that the dynamic properties of our variable follow those found in the literature. Glenn Abela, Tiziana Marie Gauci, Noel Rapa Copyright (c) 2022 International Journal of Economics and Financial Issues https://econjournals.com/index.php/ijefi/article/view/11548 Tue, 11 Jan 2022 00:00:00 +0000 Financial Performance and Sustainability of Microfinance Institutions in Morocco: A Structural Equation Model https://econjournals.com/index.php/ijefi/article/view/12666 <p>The following contribution investigates the main determinants that impact the financial performance and sutainability of Moroccan microfinance institutions (MFIs) in terms of governance indicators, staff productivity variables, and loans portfolio quality. Using an unbalanced panel data extracted from the Mix Market database and using structural equation modeling, 10 Moroccan MFIs were analyzed for the period between 1999 and 2017. Results indicate that there is no evidence of the impact of the regulatory environment and portfolio quality on these institutions' profitability, which is represented by the return on assets (ROA) and return on equity (ROE), and sustainability, which is represented by the operational self-sufficiency (OSS) and the number of active borrowers. However, results indicate that personnel productivity has a significant positive direct impact on both profitability and sustainability. This study provides guidance to policy makers in terms of enhancing the performance of personnel productivity of these institutions in the Moroccan context.</p> Khawla Chedad, Ayoub Boukir, Sanae Chaabi, Samir Aguenaou, Jawad Abrache Copyright (c) 2022 International Journal of Economics and Financial Issues https://econjournals.com/index.php/ijefi/article/view/12666 Tue, 11 Jan 2022 00:00:00 +0000 A Comparative Study of the Fama-French Three Factor and the Carhart Four Factor Models: Empirical Evidence from Morocco https://econjournals.com/index.php/ijefi/article/view/12685 <p>This paper investigates the validity of the Fama-French Three Factor (FF3F) and the Carhart Four Factor (C4F) models in Morocco. Monthly returns of Casablanca Stock Exchange-listed companies are extracted from Reuters DATASTREAM over a 5 years’ period (2013-2017). Market, size, value and momentum effect-mimicking exogenous variables are formed and regressed against the returns of size and value-sorted portfolios over a total of 8 multivariate linear regressions. While the size and value effects were found to partially hold, the momentum effect was found to be insignificant. Additionally, the C4F Model did not exhibit a better explanatory power compared to the FF3F Model. It appears that both models cannot be fully relied on in order to predict cross-sections of return in the Casablanca Stock Exchange (CSE), as they both only partially hold in the latter. Ultimately, this study brings value to the existing literature by testing two widely explored asset pricing models in an emerging market where equity research-oriented inquiries are relatively scarce or basic. Even if the models do not fully hold in the Moroccan context, this study posits whether the individual anomalistic factors hold in the CSE, which might be useful for future asset pricing models augmenting endeavors.</p> Omar Tazi, Samir Aguenaou, Jawad Abrache Copyright (c) 2022 International Journal of Economics and Financial Issues https://econjournals.com/index.php/ijefi/article/view/12685 Tue, 11 Jan 2022 00:00:00 +0000 The Effect of Monetary Policy on Economic Growth in Lao PDR https://econjournals.com/index.php/ijefi/article/view/10557 <p>The empirical analysis of this study examines the effect of monetary policy on economic growth in Lao PDR. This study uses Vector Autoregressive Model (VAR) and quarterly data from the first quarter of 1995 to the last quarter of 2018. The results found that GDP was negatively responding to price level indicates that a shock in monetary policy or when the central bank adopts an expansionary monetary policy will result in consumer price level, and therefore leads to decline on the real output in the Lao economy. Moreover, this study also found negative effect of the real interest on GDP in Lao PDRD.</p> <div id="gtx-trans" style="position: absolute; left: -27px; top: -20px;"> </div> Khaysy Srithilat, Thiphavanh Khamthoummabounmy, Vaiyoth Lienpaserth, Phiengsanith Chanthavixay, Vonsy Douangty Copyright (c) 2022 International Journal of Economics and Financial Issues https://econjournals.com/index.php/ijefi/article/view/10557 Tue, 11 Jan 2022 00:00:00 +0000