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Contents
Notes and Memoranda
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Effects
of the Legislative Sessions on the Stock
Market: Evidence from Taiwan
CHIN- TSAl LIN
AND YI-HSIEN WANG
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In this paper we
examine the relationship between the
politics and the financial market in
Taiwan. We deal with the effects of the
legislative sessions between the pre- and
post-power change on the stock return and
volatility by the AR (3)-EGARCH (1,1)
model from February 24, 1984 to January
14, 2003. The results provide empirical
evidence that neither returns nor
volatility of Taiwanese stock market are
significant at the 5% level when the
legislative assembly is in session. But
Taiwan stock market following a change of
power are significantly negative at the 5%
level, volatility of the Taiwanes stock
market following the change of power to
significantly exceed that previously at
the 5% level. Moreover, the effect of
legislative sessions posterior to the
cl1ange of power is significantly more
than the ones prior to the change of power
on the stock market return, but this
effect pre- and post- the change of power
does not significant on the stock market
volatility. This result can be attributed
to the development of the political
democratization of the Taiwan legislative
assembly, which remains immature. |
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Growth
Effects of Capital Account Liberalization:
Evidence From Vector Error Correction
Model of Nigeria
AJILORE, OLUBANJO T AlWO
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Theoretical and
empirical literature continued to present
conflicting thesis on the desirability and
consequences of capital account
liberalization, especially for developing
countries. The study focused at verifying
the growth effect of this phenomenon for
the Nigerian deregulated economy. The
paper uses the co-integration and the
associated error-correction procedure on
quarterly data on Nigeria for the period
1986 (I) and 2000 (4) to estimate a
standard growth equation for the Nigerian
economy. The results from the Augmented
Dickey-Fuller (ADF) tests confirmed that
all variables are of random walk,
while the Johansen co-integration
likelihood ratio test establishes the
presence of two co integrating
relationship among the four-variables
model. Consequence upon the foregoing, an
error-correction model was developed which
was shown to be well specified relative to
its own information set and capable of
parsimoniously representing the data set.
The findings from this study confirmed
that the surge in inflow of foreign
private capital that occasioned the
opening of the country capital accounts in
the late eighties have had positive
effects on growth performance in Nigeria.
This result runs contrary to common
positions in literature that capital
account liberalization is inimical to
economic performance for less developed
countries. |
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Importance
of Knowledge Management for
Call Centres
ANJILA SAXENA
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Knowledge Management
(KM) is the concept in which an enterprise
gathers, organize, analyzes and shares its
knowledge in terms of resources, documents
and people skills. It helps an
organization in acquiring and storing
knowledge, in planning and decision
making. Call Centers provide many business
advantages, including improved efficiency,
increased hours of operation, reduced
costs and greater flexibility. Perhaps,
the greatest challenge of running a call
centre, however, is ensuring that
customers are provided with the right
information in a timely fashion. Knowledge
Management (KM) has a number of practical
tools and strategies for meeting this
challenge, and call centre managers have
much to gain by exploring KM principles. |
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A Computer Program
for investment Appraisal in Power Sector
URMILA VERMA, N. P. SINGH AND R. K.
TUTEJA
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Visual Basic macro
based input module has been developed for
getting cash flow analysis in context of
investment appraisal. The data entry is
done through the spreadsheet in different
cells or by using the function key for
entering a formula. The module developed
is basically based on creating windows foe
data input user's friendly prompts. Each
and every window is provided with a
default value and mainly consists of input
parameters of a project and their values
considered for the project period. The
module has linkages with several
sub-modules for preparing the cash flow
analysis of a project investment plan
based on as many input parameters as one
can have and also the life cycle of the
project. |
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The Choice of Green
Policies in Supply Chain Contracts
CHUNG-CHIANG CHEN
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The awareness of public
environmentalism has forced firms to
consider manufacturing greener parts,
materials, and services to improve
environmental performance. Most
multinational firms acknowledge the
necessity of the social responsibility to
perform green purchasing and extend their
activities beyond the traditional
obligations of economic profit seeking.
Therefore, they urge the suppliers to
provide green parts or products in the
supply chain contracts. In this paper, we
examine he supplier's responsive behaviors
to the external pressure demanded by the
buyers for greener production and examine
the effects of market scale,
environmentalism and technology progress
on the optimal greenness level of the
supplied products. The results show higher
environmentalism and better technology
provide a vital power to pressure firms in
adopting higher greenness level in product
design, but the market scale may' affect
the decisions of green policies in a
different way. |
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New Institutions and
Economic Development: The Significance of
Governance and Social Capital for Economic
Growth T.
LAKSHMANASAMY
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This paper presents a
brief review of both the basic and the
expanded New Institutional Economics and
their relevance for economic development.
The early new institutional economics,
which emphasizes the role of formal
institutions like property rights in
reducing transaction costs has been termed
as 'old' new institutional economics. The
more recently identified informal
institutions like governance and social
capital that can substitute for the
absence of formal institutions not only in
reducing transaction costs but also in
contributing for economic growth has been
referred to as 'neo'-new institutional
economics. Though the early classical
institutionalists demonstrated how
institutional environment affects economic
development, the neoclassical growth
literature has ignored institutions as a
factor in economic growth. The more recent
endogenous growth theory has also failed
to recognize the role of institutions in
economic growth. The old new institutional
economics has concentrated more on the
political, economic and social
institutions in the form of property
rights, civil rights and legal
enforcement. The neo-new institutional
economics builds on the importance of
norms, networks, trust, and civic
engagement in strengthening transaction
agreements and informal contracts.
This review shows that the lesson of the
development experience of the last few
decades has been that both the market and
the state are complements to each other in
economic development. The market needs the
state to provide the institutional
environments for effective functioning and
the state needs the market for efficient
resource allocation. The state has to
provide the investment climate and the
regulatory institutions. For effective
economic development markets are central,
and in developing efficient markets,
institutions play an important role in how
markets are central, and in developing
efficient markets, institutions play an
important role in how markets affect
standards of living and help protect their
rights. In the case both market and
government failures, the community
arrangements to facilitate transactions
become operative. Development can not be
sensibly understood simply in terms of
growth of aggregates such as income per
capita; Development is about fundamental
change in economic and social structures.
The institutions provide inclusive and
integrated markets and ensure stable
growth. and strong institutions provide
opportunities for people and empower them.
For sustainable development in a dynamic
world institutions need to be improved at
many levels. Almost all societies have
invested considerably in their social
capital. The more recent growth literature
has attempted to incorporate the social
capital in basic growth equations. The
available few empirical evidences indicate
that social capital, measured in terms of
organizational memberships, is also a form
of investment and in fact social capital
contributes positively to economic growth. |
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New Perspectives on the
Role of Banks: Not Only Financial
Intermediaries but Really Solving Problems
for Clients
MIAO-SHENG CHEN AND CHUAN-HSING HUANG
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Conventional Western
banking theory defines the role of banks
as financial intermediaries, emphasizing
the function of banks to bridge the demand
and supply of capital. As a service
industry, banks should undoubtedly
strengthen the quality of service.
However, in practice, banks often
interpret quality in a superficial sense,
such as being friendly to clients,
simplifying procedures and expanding
branches, without a commitment to really
solving problems for clients. This paper
attempts to give new perspectives on the
role of banks with solving problems for
clients as a starting point. By
complementing the current cope of banking
services, this paper seeks to provide
ideas to further deepen the bondage banks
may develop with their clients. Given the
minority status of agriculture in Taiwan,
this paper explains how financial
institutions may solve the problems of
farmers by actively participating in
different stages in the production and
distribution process. This is used as an
example to shed light on the new
perspectives of banking functions, which
are then applied to commercial banks to
enhance their services to clients. |
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Investment Opportunities in
Major and Medium Irrigation in India: An
Analysis considering Unutilized Potential,
Efficiency and Cost
INDRANIL DE
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Expansion in the Major
and Medium (M. & M.) irrigation has become
necessary due to overexploitation of
groundwater through minor irrigation. The
major argument behind expansion of M.& M.
irrigation is that it suffers from low
utilization of potential created, high
cost, low recovery of working expenses and
environmental damage. The paper argues
that the above-mentioned problems of M. &
M. irrigation are not uniform in all the
states of India. There are states with
huge amount of potential unutilized, and
conditions regarding utilization of
potential create
d and cost favorable to take an
expansionary policy in M. & M. irrigation.
The paper has also suggested policies for
M. & M. irrigation suitable for the states
under consideration. The paper argues that
participatory management in M. & M.
irrigation can take account the problem of
low utilization of potential created and
low cost recovery. Environmental issues
have not been discussed here. |
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Value Added Tax (VAT) in
Retrospect and Prospects: The Indian
Experience
INDU KUMARl TIWARI
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Taxation has continued
to be one of the most important sources of
revenue for both the Central and the State
Governments in India. Further, both the
layers of Government have depended more on
indirect taxation, especially in view of
the low per capita income of the masses.
The cost consideration also prohibit the
collection of direct taxes from majority
of the people. Under such a' situation
increase in revenue is more in case of
indirect taxes in India. In this context,
it may be pointed out that direct taxes
constituted 2.31 percent of the G. D. P.
in 1951-52, while indirect taxes formed
4.68 percent of the G. D. P. Indirect
taxes have continued to predominate in
India's tax structure, the percentage
share of indirect taxes in 2000-01 stood
at 11.47 percent as against 3.46 percent
in the case of direct taxes. |
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