Financial vulnerability, fiscal procyclicality and inflation targeting in developing commodity exporting economies

Jalali-Naini, Ahmad R.; Naderian, Mohammad Amin

doi:10.1016/j.qref.2020.01.001

Cited by 14 publications

(6 citation statements)

References 31 publications

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“…The overall development of all economic entities in society dictates the development of a country. Economic growth, the prosperity of a country, and its participation in raising funds for excess and deficit sectors are driven primarily by the country's financial system (Jalali-Naini and Naderian 2020 ) and (Afonso et al 2016 ). In most countries, particularly developing countries, institutions have a crucial role in raising funds.…”

Section: Conclusion and Policy Recommendationmentioning

confidence: 99%

“…Non-banking financial institutions allow financial systems to withstand the economic crisis while reinforcing economic power. The gap in financial intermediaries is filled with the help of a wide range of products and services provided by the NBFIs, while it also plays a significant supporting role in commercial banks (Jalali-Naini and Naderian 2020 ).…”

Section: Conclusion and Policy Recommendationmentioning

confidence: 99%

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Assessing the Relationship between Poverty and Economic Growth: Does Sustainable Development Goal Can be Achieved?

Zhu

Bashir

Marie

2022

Environ Sci Pollut Res

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Income inequality, poverty, and economic growth are defined as an economy's exposure to exogenous shocks arising out of poverty. The study used various econometric estimations to measure the effect of inequality and poverty on economic development during 1990 to 2016 in Vietnam. Various econometric estimation tests confirmed the presence of a long-run association between inequality and poverty, and economic growth is the matter of poverty headcount ratio in Vietnam. When we added the investment-to-GDP ratio and the number of years in education, it decreases by -0.144. This is reduced to -0.05 when log population growth rate was added while the employment, the coefficient decreases to -0.04 and becomes statistically insignificant. We found a negative impact of poverty and we reassess the hypothesis's emphasis on inequality and poverty and their combining effect of inclusive economic growth. Interestingly our results verify the previous findings that inequality and poverty show a negative impact on economic growth. The negative impact of poverty and inequality on economic growth appears to be concentrated at the high poverty level. These findings recommend that poverty reduction policies should be beneficial in encouraging economic growth even if they do not decrease income inequality.

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Section: Conclusion and Policy Recommendationmentioning

confidence: 99%

Section: Conclusion and Policy Recommendationmentioning

confidence: 99%

Assessing the Relationship between Poverty and Economic Growth: Does Sustainable Development Goal Can be Achieved?

Zhu

Bashir

Marie

2022

Environ Sci Pollut Res

View full text Add to dashboard Cite

show abstract

“…The government mostly pays healthcare costs; therefore, it can be regarded as the fiscal policy variable. Due to the presence of fiscal dominance in the Iranian economy [32], money volume and interest rate are considered as monetary policy variables that are ordered after fiscal variables [33]. Equation [6] shows the relation between reduced-form residuals and structural shocks of the system, with A − 1 in a lower-triangular shape.…”

Section: Methodsmentioning

confidence: 99%

Economic and non-economic determinants of Iranian pharmaceutical companies’ financial performance: an empirical study

Masoumi

Azar

Rezapour

et al. 2019

BMC Health Serv Res

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BackgroundThe pharmaceutical industry in Iran is influenced by various parameters such as internal factors caused by the financial information of each economic unit and external factors including major economic and non-economic variables.MethodsThis study is aiming to examine the effect of such variables on the stock return of 34 pharmaceutical companies in the Tehran Securities Exchange market using quarterly data from 1995 to 2016. In this research, an autoregressive model was utilized to examine the way that variables affect the stock market index. In such patterns, there is no need for explicit short-term structural relationships and structural knowledge is extracted from causal relationships. Finally, to analyze the results, impulse-response functions, forecast error variance, and historical decomposition were collected.ResultsResults of this research show that positive shock to the variables, namely the currency rate, collection period of quests, and healthcare costs lead to a decrease in the return of pharmaceutical companies. On the other hand, a positive shock to the variables such as GDP, and money volume, leads to an increase in the stock return of pharmaceutical companies.ConclusionDifferent factors contribute to the stock return of pharmaceutical companies. Among the variables examined in this study, market currency rate, money volume, pharmaceutical sector inflation, bank interest rate, GDP in the healthcare sector, healthcare costs, and collection period of quests have the most effect on describing changes within the stock return of pharmaceutical companies.

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“…We observe INF to display a positive relationship on financial vulnerability risk. Experiencing high levels of INF can cause exchange rate devaluations, which affects the prices of the bank’s assets and therefore drives up financial vulnerability risk of banks (Jalali-Naini and Naderian, 2020). Although the literature devoted to INF and bank profitability is mixed, it lends support to this notion.…”

Section: Empirical Findingsmentioning

confidence: 99%

Does social and governmental responsibility matter for financial stability and bank profitability? Evidence from commercial and Islamic banks

Kanapiyanova

Faizulayev

Ruzanov

et al. 2022

JIABR

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Purpose This paper aims to explore the drivers of banking stability in the case of QISMUT+3 countries (Qatar, Indonesia, Saudi Arabia, Malaysia, United Arab Emirates, Turkey, Pakistan, Kuwait and Bahrain) focusing on social and governmental responsibility (SGR) determinants. Both main indicators of banking stability, namely, profitability and nonperforming loans, were treated as dependent variables. The model is examined with the whole sample and separately by examining commercial banks and Islamic banks. Design/methodology/approach Cross-country bank-level panel data spanning from 2011 to 2018 is used. Two-step system generalized methods of moments alongside both panel-corrected standard error and feasible generalized least squares models were applied to ensure the robustness of the results. Findings Findings reveal that capital adequacy and corruption control are the most dominant determinants of banking profitability in the studied sample regardless of the type of the bank. In addition, profitability, efficient management, inflation and government effectiveness were found to be the main drivers of financial vulnerability risk. Practical implications Findings of this study offer many insights and policy implications to help stakeholders gain a comprehensive understanding of banking stability. Suggested policy implications targeting bank management, governmental policymakers and investors are offered to better the banking stability of QISMUT+3 countries. Originality/value This paper has multiple contributions to the existing literature. The determinants of banking stability are examined in QISMUT+3 group of countries which is the focus of a limited number of studies. In addition, the use of a comprehensive variable set alongside the addition of SGR determinants in the case of banking system stability is one of the main contributions of this paper.

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Financial vulnerability, fiscal procyclicality and inflation targeting in developing commodity exporting economies

Cited by 14 publications

References 31 publications

Assessing the Relationship between Poverty and Economic Growth: Does Sustainable Development Goal Can be Achieved?

Assessing the Relationship between Poverty and Economic Growth: Does Sustainable Development Goal Can be Achieved?

Economic and non-economic determinants of Iranian pharmaceutical companies’ financial performance: an empirical study

Does social and governmental responsibility matter for financial stability and bank profitability? Evidence from commercial and Islamic banks

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