Modify your search
Corporate Financial Leverage, Asset Utilization and Nonperforming Loans in Pakistan
Ijaz Hussain
Published:Jan - June 2017
This study applies panel least squares and fixed effects to a sample of 40 banks for the period 2006–14 to identify the key determinants of nonperforming loans (NPLs) in Pakistan. The findings suggest that, in addition to some macroeconomic and bank-specific variables, the corporate debt–equity ratio and financial burden have a positive, significant impact on NPLs, while corporate asset utilization and the diversification of bank activities significantly reduce the volume of NPLs. This has policy implications not only for the federal government, but also for bank managers, regulators and policy advisors.
KEYWORDS:
nonperforming loans,
bank asset quality,
diversification,
Pakistan.
JEL:
G21,
G28,
G00.
Is There a Causal Relationship Between Financial Markets in Asia and the US?
Amalendu Bhunia and Devrim Yaman
Published:Jan - June 2017
This study examines whether there is a causal relationship between selected stock markets in Asia and the US. Based on stock values from a sample of nine Asian stock markets, we find a positive correlation with US stock market prices in most cases, the exception being Vietnam. Our results indicate significant long-run and short-run causality in both directions between the Asian and US stock markets. These findings show that, while both sets of markets are integrated, there are still valuable opportunities for international investors to diversify their portfolios in the US and Asia.
KEYWORDS:
stock market,
short and long term causality,
Asia,
USA.
JEL:
F21.
The Impact of Rural Electrification on Education: A Case Study from Peru
Julio Aguirre
Published:Jan - June 2017
This study examines the indirect impact of rural electrification on education. It finds that the greater the likelihood of a household being connected to the electricity grid, the more time the household’s children are likely to spend studying at home. This finding is interpreted as indirect evidence of an improvement in levels of schooling. Using instrumental variables to overcome endogeneity problems, the study’s LATE estimates reveal that providing households with access to electricity leads to children studying an extra 94 - 137 minutes at home per day, on average.
KEYWORDS:
rural electrification,
infrastructure,
education,
Peru.
JEL:
O12,
C31,
C81.
Deprivation Counts: An Assessment of Energy Poverty in Pakistan
Rafat Mahmood and Anwar Shah
Published:Jan - June 2017
This paper examines the energy–poverty nexus in Pakistan at the national and provincial level, using the multidimensional energy poverty index. Based on data from the Pakistan Social and Living Standards Measurement Survey for 2010/11, we find that the average household in Pakistan is 26.4 percent energy-poor. The study shows that the incidence of energy poverty is higher in rural areas than in urban areas, with a similar trend at the provincial level. A comparison with findings based on data from 2008/09 shows a slight decrease in energy poverty at the national level.
KEYWORDS:
energy,
poverty,
households,
Pakistan.
JEL:
Q01.