Journal of Economics and Sustainability

FINANCIAL DEVELOPMENT AND POVERTY ALLEVIATION: A SYSTEMATIC REVIEW

Lucas Elumah, Muritala Taiwo , Umaru Zubairu — Wed, 31 Jan 2024 00:00:00 +0800

This study is conducted to validate the effectiveness of financial development in reducing poverty. The study adopted a Systematic Quantitative Assessment Technique and reviewed 91 financial development and poverty alleviation articles published between 2010–2022 to provide insight into the efficacy of financial development in reducing poverty and producing a blueprint for the government for possible adoption. The study also intends to know whether financial development successfully reduced poverty, highlight the evidence showing the success of financial development in reducing poverty, how financial development strategies were implemented to reduce poverty in other countries, and why financial development has been ineffective in reducing poverty. The reviewed articles revealed that financial development benefits the poor by increasing their access to various funding sources, thus improving well-being and reducing poverty. Similarly, it was revealed that lack of institutional quality and low financial penetration are the major reasons why financial development may not successfully reduce poverty. Thus, this study presented a FACI Blueprint to help the government effectively reduce poverty in countries where financial development is weak and unable to reduce poverty.

THE IMPACT AND HETEROGENEITY OF DIGITAL INCLUSIVE FINANCE DEVELOPMENT ON POVERTY ALLEVIATION - BASED ON COUNTY-LEVEL PANEL DATA IN JING-JIN-JI REGION

Xiaohui Guo, XiaoKun Gao — Wed, 31 Jan 2024 00:00:00 +0800

Based on county-level panel data from 2014 to 2017 in Jing-Jin-Ji region, employing SDEM model to analyze the impact and heterogeneity of digital inclusive finance on poverty alleviation. The results show that, first, digital inclusive finance exerts significant poverty alleviation effect, and this effect focuses on local region, having no apparent spillover effects on neighborhood counties. Second, the poverty alleviation effects of digital inclusive finance are heterogeneous, the effects of index of Coverage and Usage, and basic, upgraded and supported digital finance service are different in Jing-Jin-Ji, Hebei and Poverty Area Samples. Third, digital inclusive finance exerts bigger poverty alleviation effect on the less developed region and poverty region, showing the effect of Corner Overtaking.

THE IMPACT AND CRISIS MANAGEMENT OF COVID-19: AN ANALYSIS OF LARGE MANUFACTURING FIRMS IN PENANG

Wooi Leng Ong, Siu Ming Lee — Wed, 31 Jan 2024 00:00:00 +0800

This paper examines the impact of Covid-19 and movement control orders on large manufacturing firms in Penang, a major industrial hub in Malaysia with notable participation in the global value chain and identifies the response strategies undertaken by large manufacturing firms for this crisis. This study employs an exploratory qualitative research analysis based on a purposive sampling technique to gather data using an online semi-structured expert interview, with 22 large local and foreign manufacturing firms in Penang responding to the interview. The findings suggest that most of the firms expected a loss of business revenue, disrupted supply chains, employee redundancy, and an increase in government support. Persevering and innovation strategy is the most popular measure taken on by large manufacturing firms, and none of the firms interviewed choose pure persevering as a sole strategy to combat the crisis. The study provides an understanding of strategic responses undertaken by large manufacturing firms. Besides that, the study provides inputs to the government, industry, and policymakers' suggested policy interventions to improve future crisis management.

EXPLORING THE VIEWS OF MALAYSIAN HOTELIERS ABOUT SURVIVAL DURING THE COVID-19 PANDEMIC

Kai Xin Tay, Nur Hidayah Nordin, Le Xian Lim — Wed, 31 Jan 2024 00:00:00 +0800

The sudden new crown pneumonia epidemic has had a huge impact on tourism, as well as hospitality industry in Malaysia. This paper analyses the views and reaction in crisis management practices pursued by hotel managers for business survival during the COVID-19 pandemic. To do so, in-depth interviews were carried out on the managers of Malaysian hotels (five managers from 3-star hotels, and four managers from 5-star hotels). The results indicated that the labour actions (e.g., unpaid leave, salary cut and layoff) were the first and most favour by hotels to respond to the COVID-19. However, it causes the shortage of manpower when the hospitality industry resumes back at the recent stage. This is one of the main challenges faced by hoteliers. Digital marketing and promotion were another strategy implemented by hotels to increase occupancy rate during the pandemic. In addition, views on government supports to the hotels during the pandemic were also identified.

REVISITING WEAK-FORM EFFICIENCY OF MAJOR SECTORS OF MALAYSIA DURING THE COVID-19 PERIOD

Qaiser Munir, Sook Ching Kok — Wed, 31 Jan 2024 00:00:00 +0800

There are plenty of literature on the efficient market hypothesis (EMH) especially for a stock market, but relatively fewer studies for across sectors. We look into the weak-form informational efficiency for twelve sectors in the Malaysia’s stock exchange, i.e. Consumer Products & Services (KLCSU), Construction (KLCON), Energy (KLENG), Financial Services (KLFIN), Health Care (KLHEAL), Industrial Products & Services (KLPRO), Property (KLPRP), Plantation (KLPLN), Transportation & Logistics (KLTRAN), Telecommunications & Media (KLTEL), Utilities (KLUTL), and Technology (KLTEC) during the outbreak of COVID-19 pandemic. We use QTEST (without trend) and TQTEST (with trend) which incorporate two structural breaks to carry out the analysis. Data are collected from 1/1/2020 through 31/3/2022. These indices show non-linearity and structural breaks in data. The findings of our study suggest mixed results in regard to informational efficiency when breaks are taken. Four indices, i.e. KLCON, KLFIN, KLPRP, and KLUTL are found to be inefficient while the remaining eight sectors are found to be efficient. Investors can predict the movements of stocks in the inefficient indices and are able to gain abnormal returns from these stocks. Policymakers may encourage investors to have more trades; so that to make the market more efficient by gradually eliminating the opportunities on earning abnormal returns.