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Indian Journal of Economics and Financial Issues

Indian Journal of Economics and Financial Issues

Frequency :Bi-Annual

ISSN :2582-5186

Peer Reviewed Journal

Table of Content :-Indian Journal of Economics and Financial Issues , Vol:1, Issue:4, Year:2020

RELATIONSHIP BETWEEN RICE PRODUCTION, FISHERIES PRODUCTION AND GROSS DOMESTIC PRODUCT (GDP)IN BANGLADESH:Co integrating Regression Analysis (1971-2017)

BY :   Sudip Dey
Indian Journal of Economics and Financial Issues , Year: 2020,  Vol.1 (4),  PP.201-216


The  aim  of  this  paper is  to  investigate  the  relationship  between  rice production, fisheries production and gross domestic product (GDP) in Bangladesh.Agricultural sector and fishery sector play an important role in Bangladeshi economy.These sectors have great contribution to increase gross domestic production (GDP),create employment opportunities and ensure food security of Bangladesh.

Annual time series data used for the study over the period of 1971 to 2017 in Bangladesh.Different kinds of econometric techniques applied to conduct the study, namely, augment Dickey-Fuller (ADF) test, Phillips-Perron (PP) test, Johansen co integration test, fully-modified least squares (FMOLS) method and dynamic least squares (DOLS) method.

To justify the model some residual diagnostic tests were employed.The results of the study indicated that rice production has a positive and significant impact on gross domestic product (GDP) in Bangladesh. On the other hand, although fisheries production has a positive effect on gross domestic product (GDP), this impacts not significant at 5 or 10 percent level of significance.

Since the contribution of fisheries production is not significant to gross domestic product(GDP) the government should create more facilities, and provide more subsidies, new funding schemes and training programs to the fish farmers. Furthermore, the government should increase government expenditure in the fisheries sector and implement more modern technologies to enhance the fish production of Bangladesh. Last but not the least; the government should be concerned about some climate changing  and man-made factors which are also the causes for reduction of fish diversity and production in Bangladesh

Keywords:  Gross  domestic  product.  Rice  production. Fisheries  production. Co integration .FMOLS.DOLS. Bangladesh.


ENERGY SECTOR DEVELOPMENT AND MANUFACTURING OUTPUT IN NIGERIA

BY :   Iwashokun Abdulgazal Femi, Adejumo Akintoye Victor and Olayiwola Abiodun Sunday
Indian Journal of Economics and Financial Issues , Year: 2020,  Vol.1 (4),  PP.217-235


This study assessed the relationships between various energy sources and manufacturing output with a view to providing information on efficient energy-mix option for enhancing manufacturing output production in Nigeria. Annual data we resourced  from  World  Development  Indicators,  Central  Bank  of  Nigeria  Statistical Bulletins, National Bureau of Statistics, and Power Holding Company of Nigeria and analyzed using Auto regressive Distributed Lag (ARDL) technique. The results showed that hydroelectricity (t = 10.27, P < 0.05) and gas (t = 2.21, P <0.05) have positive and statistically significant long run relationships with manufacturing output in Nigeria,while coal (t = 1.97, P > 0.05), although has a positive relationship with manufacturing output, is statistically significant at 10% level. However, the short run results reported positive  and  significant  relationships  between the  contemporaneous  values  of hydroelectricity  (t=4.08, P<0.05),  coal  (t=2.12,  P<0.05),  gas  (t=2.27,  P<0.05)  and manufacturing output in Nigeria but the previous year value of hydroelectricity (t= -3.14,  P<0.05)  has  a  significant  negative  relationship  with  manufacturing output.Therefore, the study concluded that hydroelectricity, gas and coal are the major energy sources supporting manufacturing output production in Nigeria and recommended that Nigerian manufacturing firms should make use of them as their main energy input.

Keywords: Energy-mix, manufacturing, output, ARDL


WHAT TYPE OF INVESTMENT DOES DIGITAL FINANCE PROMOTE:Speculative or Non- Speculative?

BY :   Chinwe Okoyeuzu and Kabiru Dandago Isa
Indian Journal of Economics and Financial Issues , Year: 2020,  Vol.1 (4),  PP.237-246


This study was set to investigate the elasticity of digital finance to foreign investment correlates in Nigeria. The quest was triggered by the need to determine whether or not foreign flows act as enablers for the development of digital finance. To determine the order of integration and ensure the stationary of the variables used, we performed the traditional Augmented Dickey-Fuller (ADF).Using web-based transaction value as a proxy for digital finance,the baseline ARDL estimates show that foreign investment flows proxied by FDI, FPI and Loans act as drivers for digital finance. Web based transaction was found to be a positively significant function of foreign portfolio and foreign loans with different coefficient of elasticity. Foreign direct investment on the other hand did not significantly affect the dependent variable over the studied period.We established cointegration following Pesaran, Shin and Smith (2001) test for co integration by using the Bound Test results. The coefficient of the Error Correction Mechanism (-0.22) is negatively significant, which implies that 22 percent of the errors in the model are corrected annually. The ECM suggests that web-based transactions adjust to the speed and dynamics of investment drivers in Nigeria within the studied period. FPI and Loans were significant. Digital finance is promoting FPI and not FDI which is not healthy. Government should review her policies on investments and pay attention to essential ingredients for boosting investments in Nigeria like ease of doing business, security and corruption

Keywords: Financial stability, Investments, Digital Finance, Nigeria.


FINANCIAL EDUCATION VS UNIVERSITY PROGRAMS

BY :   José G. Vargas-Hernández and Daniela Iveth Méndez Zamora
Indian Journal of Economics and Financial Issues , Year: 2020,  Vol.1 (4),  PP.247-268


The objective of this research is to analyze the financial literacy knowledge of  the  Millennials  generation.  The  research  method  is  qualitative-quantitative  of correlational  type  since  it  consists  of  identifying  the  relationship  between  the independent variable and the dependent variable. The general hypothesis is that limited financial  education  in  curricula  affects  the  financial  education  of  the  Millennials. Through the information gathered and the surveys applied it is evident that Millennials generation  has  no  financial  knowledge  and  university  curricula’s  have  limited information on financial education.

Keywords: Financial Education, Millennials, Educational Programs.

JEL: G21, G22, A22, I21, I22


AUDIT QUALITY AND FIRM VALUE OF LISTED DEPOSIT MONEY BANKS IN NIGERIA

BY :   Hirhyel Ibrahim Abba and Abdon Ahmed Sadah
Indian Journal of Economics and Financial Issues , Year: 2020,  Vol.1 (4),  PP.269-282


 Industrial growth is a major factor for the economic survival of any country,and  this  growth  is  achieved  by  the  successful  operation  of  companies  in other  to maximize firm value. However, doubt in the mind of investors regarding the credibility of the financial statement slow down the motivation to invest in shares, hence the need for the credible and reliable audited financial report. This study investigates the impact of audit quality on firm value of listed deposit money banks in Nigeria. Firm value was the dependent variable proxy by Tobin’s Q and audit quality the independent variable proxy by audit size and industry specialized audit. The study adopted  correlationa lresearch design and data were extracted from the published annual reports and accounts of the 13 banks that represent the sample of the study for the period of 6 years covering 2013 to 2018. The study employed pool  multiple regression as a  technique  of dataanalys is. The result shows that industry specialized auditor has a significant positive influence on firm value of listed deposit money banks in Nigeria. On the other hand,audit size has no significant influence on firm value of the banks. This finding impliesthat the more deposit money banks in Nigeria are audited by industry specialize auditor he  higher  the firm  value  of  the banks. Therefore the  study  conclude  that  industrialised auditors have better understanding of the complexity in the banking industry there by  improving  the  firm  value  by  providing quality  audit  service,  The  study recommends that the managers of deposit money banks in Nigeria should employ more service  of industry  specialized  audit  in other  to increase  investors’ confidence  andthereby improve the firm value.


CLIMATE INDUCED AGRARIAN CRISIS AND RURAL COMMUNITIES OF NORTH-EAST INDIA: EVIDENCE AND LESSONS LEARNT

BY :   Falendra Kumar Sudan
Indian Journal of Economics and Financial Issues , Year: 2020,  Vol.1 (4),  PP.283-302


The paper intends to examine the impact of climate induced agrarian crisis on rural communities at micro level, and to explore likely situation to evolve and ongoing responses and recommendations to mitigate sufferings and improve livelihood options in rural areas of district Mamit of Mizoram State in north-east India. The primary data and information was collected from a total of 625 households confined to 25 villages (25 households each) using structured interview schedules. Content analysis technique has been used to analyze data and information qualitatively and quantitatively (using descriptive statistics). The study reveals that the deterioration of households’ economic situation is translating into poorer diet and decreased expenditure on children’s health and education, more poverty and debt, and engagement into low-earning, informal income earning activities. Indebtedness remains high, absorbing one-tenth of households’ expenditure. Thus, climate induced agrarian crisis are affecting adversely food security and nutritional status of poor households, who seek additional work opportunities and migrate to mitigate hardships and sufferings.

In 88% of poor Christian households, at least one person per family have resorted to migration as survival strategies and supplementing meager earnings. With recent economic crisis, most migrants consequently change their status from becoming providers of remittance incomes to their households, to becoming dependents of these households, even as these households face more fragile material circumstances than before. Many of these migrant workers, for obvious reasons, come from most depressed and backward villages, where there is currently little potential for productive income generation. Declining remittances of migrants and unemployment among returnees, especially in climate induced agrarian crisis and post-bamboo flowering crisis scenarios are important issues. It generated great controversy even before crisis, decline in migrant remittances and unemployment among returnees gained an even greater seriousness with advent of bamboo flowering crisis. Economic slowdown made local labour force view returnees as competitors for scarce jobs, whereas they once view their remittances as a fuel to local economy. However, issue of fall in remittances of migrants and rise in number of returnees, particularly after current slowdown, has more far-reaching implications on well-being of children in these households.

Furthermore, many of their coping strategies are either ineffective, or create harmful consequences, especially for children. Negative shock on income translates to lower social spending and investments, in turn leading to worse child welfare outcomes. Households facing income shocks could also try to borrow money resulting in severe household debt problems. Poor households also tend to react to climate induced agrarian shocks by diminishing spending on items that contribute to human capital investment (education and health), thus contributing to their vulnerability in future. Therefore, needs for social protection assistance will increase, however, government budgetary capacity to expand existing programmes will decrease. Interventions in response to natural shocks should not only mitigate immediate effects on poor households but also continue to tackle basic causes of poverty and food insecurity, including improvement of services (health, water, sanitation, and education), infrastructures, agricultural productivity and access to credit.

Keywords: Climate change, agrarian crisis, rural communities, policy

JEL Codes: Q12, Q19, Q54, Q58


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