Open Access Original Research Article

How Does the Network Media Attention Affect Stock Returns? ---Evidence of Listed Company in China

Shen Zun-Huan, Liu Xiao-Tong

Journal of Economics, Management and Trade, Page 1-12
DOI: 10.9734/JEMT/2019/45251

The influence of network media on social economy becomes more and more important, but the existing literature lacks the analysis of the path about the impact of network media on stock returns. With the listed companies on Shenzhen Stock Exchange of China and the network media reports about them, the paper studies the transfer path of network media attention on stock returns. The results show that the impact of network media attention on stock returns occurs through the middle variables of volume and stock price, implying investors are more likely to be attracted by the high degree of network media attention, which lead to frequent transactions and stock price decline. The paper also shows that the cause and the transmission path are basically in line with the theory of over-attention under performance hypothesis, and the media effect exists.

Open Access Original Research Article

Optimal Policy Mix for Inclusive Growth: Evidence from Nigeria

Samuel O. Okafor, Olisaemeka D. Maduka, Ann N. Ike, Kenneth O. Ahamba, Daniel C. Okoro, Joan E. Onoja

Journal of Economics, Management and Trade, Page 1-19
DOI: 10.9734/JEMT/2019/45084

Unresolved issues on choice of optimal policy mix for inclusive growth pose intractable problems to policy-makers. Search for solution has continued in the present study which focused on extracting common or specific factor with proper combination of fiscal and monetary measures that could foster inclusive growth. Study spanned across 1980-2016. Data were sourced from Central Bank of Nigeria, National Bureau of Statistics, Abuja and World Development Indicators.  Exploratory factor analysis technique was used to analyze the data. Results indicate that: (1) Optimal policy mix, compatible with inclusive growth, is expansionary fiscal-expansionary money which blended company income tax, recurrent expenditure, money supply, domestic debt, credit to private sector, custom and exercise duties, net loans and advances, exchange rate, federally collected revenue, capital expenditure and petroleum profit tax in exact proportion of their respective regression weights (2) Decelerator policy mix undermined the effectiveness of optimal policy mix (3) Rising demand for money induced external borrowing which failed to impact significantly on growth. The study concluded that the determination of optimal policy mix that fosters inclusive growth justifies Keynes's MEC theory as a valid theoretical framework for the study.  It was recommended, inter alia, that Macroeconomic Policy Committees be domiciled in finance ministries for effective coordination of fiscal and monetary policies.

Open Access Original Research Article

Sectoral Allocation of Deposit Money Banks’ Credit and the Growth of Nigerian Real Economy: A Disaggregated Analysis (2008Q1 – 2017Q4)

Cyril Madubuko Ubesie, Felix Nwaolisa Echekoba, Uzoamaka Gloria Chris-Ejiogu, Amalachukwu Chijindu Ananwude

Journal of Economics, Management and Trade, Page 1-22
DOI: 10.9734/JEMT/2019/44889

In this study, the effect of sectoral allocation of deposit money banks’ credit on the growth of the Nigerian real economy from 2008Q1 to 2017Q4 was evaluated. We were inspired by the unsettled disparity in empirical literature on the effect of sectoral allocation of deposit money banks credit on the growth of the real economy. Specifically, we ascertained the effect of deposit money banks' sectoral credit on agricultural, industrial, building & construction and wholesale & retail trade contribution to real gross domestic product. The study was pursued within the finance-led growth framework given the increased support for this theory in existing literature using an ex-post facto research design. The models we developed were estimated using the Ordinary Least Square (OLS) regression technique. The result of the analysis revealed that deposit money banks' credit to agriculture, industries, building & construction and wholesale & retail trade have no significant effect on agricultural, industrial, building & construction and wholesale & retail trade contribution to real gross domestic product. Deposit money banks should remove the disparagement that the agricultural sector is not viable, and lend to farmers with genuine needs for funds at a low interest rate. The Central Bank of Nigeria can equally play a critical role in reducing the interest rate charged by deposit money banks in extending credit to the economy by cutting down the monetary policy rate to a single digit compared to the current double digit of 14%. Government should spend more on capital project in basic infrastructure to attract investments in the economy.

Open Access Original Research Article

Are the Determinants of Imports Similar Across Manufactured Products? Evidence from Nigeria

Ebenezer Adesoji Olubiyi, Felix Olaifa, Rashidat Sumbola Akande

Journal of Economics, Management and Trade, Page 1-17
DOI: 10.9734/JEMT/2019/44943

The study investigates the determinants of selected manufactured imports in Nigeria with a special focus on the role of domestic production.  The autoregressive distributed lag (ARDL) in the context of new trade theory was utilised with data coverage between 1985 and 2016.  Results show that imports of various manufactured products are affected differently by some factors. In particular, domestic output of electrical & electronics have a significant and negative effect on own imports. However, there was no significant effect of domestic production of petroleum products on imports of the same goods. Also, the effect of domestic output of food & beverages on imports of same product is positive. Further, the sensitivity of imports to exchange rate changes differ across products, in some it have immediate effect while in some it delays for a year. In the same vein, while GDP is an important driver of imports of some products, it is unimportant for some.  Also, it is only food & beverages imports that significantly respond to change in tariffs. The overall conclusion from this study is that drivers of import demand differ across products.

Open Access Original Research Article

Oligopolistic Competition, Asymmetric Trade and Pollution Taxes

Salvador Sandoval Bravo, Víctor Hugo Gualajara Estrada

Journal of Economics, Management and Trade, Page 1-12
DOI: 10.9734/JEMT/2019/45763

This study develops a partial equilibrium model for asymmetric trade between two heterogeneous companies located in different countries under reciprocal dumping and oligopolistic competition conditions. All governments must implement a series of strategic environmental policies with the objective of maximizing the wellbeing of the country, considering company utility, consumer benefit, government income obtained through the levying of pollution taxes, and the social cost of polluting. It can be determined that, if the disutility of polluting is considerably high, governments should levy taxes on pollution. On the other hand, they could also opt not to tax pollution, provided that there is compliance with certain additional conditions that depend on other related parameters, such as marginal production costs and the scale of the companies’ production.