This study investigates the causal relationship between public and private external debt and economic growth in developing countries. Our model includes 18 selected Asian developing and transition economies from 1995 thru 2019. We employ the dynamic heterogeneous panel data methods, pooled mean group (PMG), robust cross-sectional augmented autoregressive distributed lag (CS-ARDL), and pairwise panel causality test. The results of PMG and CS-ARDL show the existence of causality between external debt and economic growth both in the short-run and long-run. The pairwise Granger causality test found the bidirectional causal relationship runs from total external debt, public external debt, and private external debt to economic growth and economic growth to external debt. The results showed first the existence of causality in the short-run and long-run between external debt and economic growth and the second, bi-directional causality that runs from external debt to economic growth and economic growth to external debt. Both the dynamic models and robust estimator found the same inferences about the impact of main variables on economic growth in Asian developing and transition economies. The findings of this study suggest to assure debt management, investment in productive sectors, increase domestic savings, decrease external dependency, and focus on international trade.

This paper investigates the impact of monetary policy independence shock on bond yield by allowing for heterogeneous coefficients in the model based on panel data for 19 developing countries using quarterly data from 1991 to 2016. First, we estimate the model using conventional panel VAR estimation with the assumption of homogeneous coefficients across countries. Second, by performing Chow and Roy-Zellner tests to check the homogeneity assumption, we find that the assumption does not hold in the model. Third, we apply a meangroup estimation for panel VAR as a solution for heterogeneity panel model. The results reveal that central bank independence is effective in reducing bond yield with the maximum at period 6 after the shock. Shock one standard deviation bond yield has a negative effect on consumption and investment. We determine that central bank independence has a contradictory effect on real activity; a negative effect on consumption but a positive influence on investment for the first two years after the shock. Additionally, we split our sample into three groups to make the subgroups pool. Our empirical result shows that monetary policy independence shock reduces bond yield. Meanwhile, the response of economic activity to bond yield varies for all three groups.

The paper aims to investigate the impact of foreign direct investment (FDI) on private investment with a sample having 49 developing countries in Asia (17 countries) and Africa (32 countries) during the period of 1990-2017. Unlike previous studies, we split the data into three groups for further analysis, including the Asian, African and the full-panel samples. The results confirm a crowding-in effect which shows that foreign direct investment promotes private investment on all three research samples. Besides, the lagged private investment has a positive and significant effect on itself in the next period which reflects the inertia in the trend of private investment in recipient countries. In the full-panel sample, there are some macro factors such as GDP per capita, trade openness, and electricity that also have a positive and statistically significant impact on private investment. Besides, when more deeply estimate with smaller samples, we find that trade openness and labour force have a positive and significant in Africa, on the other hand, not in Asia. However, the domestic credit variable has a negative and significant effect on private investment only in Asian developing countries. Furthermore, there is only a positive and significant impact of the electricity variable on private investment in Asia.

In recent decades, financial crises in various countries have often been preceded by the rise in non-performing loans (NPLs) in the banks’ asset portfolios. The increase in NPLs is proven to have adverse impact on the banking sector so that understanding the determinant of NPLs is immensely crucial to ensure the efficiency and soundness of the overall economy. This study aims to shed light on bank-specific factors that affect loan default problems in developing countries whose banking sectors play a major role in the overall economy. This study analyzes panel data sets of 36 commercial banks listed in the Indonesian Stock Exchange during the period 2008–2015. Applying fixedeffects panel regression model reveals that Indonesian banks’ profitability and credit growth negatively influence the number of NPLs. Moreover, banks with higher profitability are proven to have lower NPLs because they can afford adequate credit management practices. Likewise, banks with higher credit growth evidently have lower NPLs in the sense that they demonstrate more specialized lending activity and thus have better credit management systems. These findings imply that, in order to lower loan defaults that can deteriorate banks’ asset quality, banks should maintain their level of profitability and increase, rather than decrease, their credit supply to debtors.

Purpose - The purpose of this paper is to analyze the relationship between the real exchange rate and the output, which is based on the macroeconomic equilibrium theory in China. Its aim will be to verify whether the change in the real exchange rate has a significant effect on the output or not. Research design, data, and methodology - This study endeavors triestoinvestigatethecorrelationamongeconomicvariablesunder the macroeconomic market (the commodity market and the money market) equilibrium. So, time-series data from 1990 to 2016 is applied to establish a vector auto-regression (VAR) model so as to perform an empirical analysis. Results - The empirical results reveal that an increase in the real exchange rate will result in an increase in the output in the short run. However, the empirical results also indicate that this kind of mechanism cannot work in the long run. Conclusions - The effect of a decrease of real exchange rate on output is significant in the short run. Also, this paper suggests that the total supply and the total demand can promote economic growth. The fiscal and money policy play a significant role in economic growth in China as well.

This paper estimates the impact of terms of trade(TOT) on economic growth and inflation for seven Asian countries. We find that for China, India, Indonesia, Malaysia, Pakistan, Philippines, the deterioration of TOT can promote economic growth. In the case of the improvement of TOT, the domestic price tends to decrease in Philippines and Turkey. In contrast, CPI in countries such as China, India, Indonesia, Malaysia and Pakistan rises because of the improvement of TOT. According to the results which are based on the VEC model, we can conclude when the TOT of China, Indonesia, Pakistan and Philippines is not so appropriate from the long-run equilibrium, the economy can also turn back to the equilibrium by error correction process. And there are statistically nonsignificant trends toward the influence of long-terms economic balance to real GDP per capita of India and Malaysia. As for the situation of CPI in India and Pakistan, when TOT is impacted, the economy can still turn back to the equilibrium by error correction process. But the adjustment coefficient of China, Philippines and Turkey is not so significant in statistics.

Prior literature expects a lower marginal cash value for weaker governance firms. We test this empirical hypothesis by using the sample of publicly traded Korean firms from 2005 to 2013. To measure the quality of governance structures, we employ the corporate governance scores provided by Korean Corporate Governance Services. The empirical model of Faulkender and Wang (2006) is adopted to estimate the marginal value of cash. Our empirical analysis shows a higher marginal value of cash for the good governance firms in the examination of the total governance score. This finding is consistent to the agency view of cash policy predicting a larger marginal value of cash for the firms with higher governance scores. However, this positive relationship is not robust for a subset of detailed governance scores; a lower marginal cash value is observed for the firms with better qualities of board structure, auditing, dividend policies. Moreover, our empirical analysis verifies a quite low level of marginal cash value for Korean firms, which supports the existence of severe agency conflicts in Korean corporations. Our results verify the significant role of agency conflicts between a manager and shareholders in the determination of marginal cash values in the Korean firms.

Although the scope of Official Development Assistance(ODA) projects has been expanded to the energy and environmental sectors, many Green ODA projects have experienced difficulties in sustainable operation because of insufficient consideration on the real status of recipient countries. Selecting technology to apply is the first step on the ODA process, however, there has been lack of study on evaluation indicators, especially for waste-to-energy. Therefore, we have explored the evaluation indicators for waste-to-energy technologies selection based on the case of Phnom Penh capital city in Cambodia. The study was performed through literatures review, field trips, and interviewing local officials and experts. Finally, we have suggested following indicators: secure of raw materials (waste price, collection, waste quality), sustainable operation (construction and operation cost, land use, management ability), and market condition (prices of substitutes, demanders, required quality of products).

Purpose – This study examines the relationship between organizational justice and employee job satisfaction and the extent of its moderation by perceived alternative job opportunities. Research design, data, and methodology – This is a cross-sectional study utilizing survey questionnaire data from 220 bank employees, which included scales measuring organizational justice, job satisfaction, and perceived alternative job opportunities. Results – The data is analyzed using correlation and hierarchical regression. Results demonstrated that organizational justice has a direct positive impact on employee job satisfaction further, distributive justice explains more variance in job satisfaction, followed by procedural justice and interactive justice. Perceived alternative job opportunities moderate the relationship between organizational justice and job satisfaction. Conclusions – Generally, organizational justice increases bank employees’ job satisfaction; however, when they perceived more job opportunities, their job dissatisfaction increased notwithstanding fairness. Therefore, perceived job opportunities moderate the relationship between organizational justice and job satisfaction. Retaining skilled employees has become difficult, especially when there is market demand for skilled workers. Human resource (HR) managers should consider market situations before formulating policies; otherwise, they may lose the competitive advantage of skilled employees and workers.

The build-up plan of network to export domestic recycling technologies to developing countries is suggested in and around the Philippines. In the case of developing countries, human network by governmental and non-governmental organizations could be used because the cooperation between government and industry seems to be insufficient. Because developing countries might need financial support, the support from KOICA, EDCF, WB and ADB is necessary. The network build-up plans to export domestic recycling technologies to developing countries are suggested. For this build-up, the following work should be performed: network build-up among the relative organizations and recycling companies; the request to specialists for data collection and spot survey for inadequate data; seminar opening to understand the on-site technology demand and to intoroduce domestic technologies. The following work should be added: securement of political, administrative and social status materials; financial support form international aid organizations. The expected effects through this process are as follows. The first is to support technology export through human network build-up. The second is to secure the introduction cost of recycling technologies. The third is to secure the waste-relative data and materials.