INTERNATIONAL JOURNAL OF ECONOMICS, BUSINESS AND HUMAN BEHAVIOUR

The Effects of Balance of Trade and Economic Development Factors on The Exchange rate: Case of Morocco

Ahmad Baijou, Mohammed Kamal Zaraba — Fri, 08 Apr 2022 15:33:14 +0530

The relationship between accounts of trade balance and exchange rates has long been examined by previous studies, and the obtained results differ from one research to another depending on the methodology applied. This paper examines the various effects of Morocco’s balance of trade and other economic factors on the exchange rate of the Moroccan Dirham (MAD) with respect to the American Dollar (USD). An annual time series data was collected from 1960 to 2018 from the World Bank Data Group concerning exports, imports, gross domestic product (GDP), inflation, and the official exchange rate. Johansen co-integration test, vector autoregressive (VAR) model, Vector error corrective model (VECM), and Granger Causality were applied to test the significance and impact of variables related to the trade balance and economic factors. Results revealed a cointegration association between the variables. This association is exhibited on both the short-run and the long-run. Only inflation displayed an association with the exchange rate on the short run. On the other hand, exports, imports, and GDP appeared to be cointegrated with the exchange rate on the long run. Unlike the trade balance components, GDP and inflation appeared to Granger-cause the exchange rate of Morocco.

The Transformative Impact Of Digital Technology On Business Performance

Awais Ahmed, Musaddiq Rasool — Thu, 10 Mar 2022 11:39:55 +0530

Digital transformation is extremely dynamic and completely a timely approach that organizations offers to prioritize in its strategic design process which aligns business to the global digital trend. However, the aim of this study is to examine the influence of digital transformation on business performance. the study uses a qualitative approach method of literature review perspective by conducting a structured and general search of previous scholars’ works written and published through existing search engines such as journal articles from Google scholar, Direct Google search, and thesis literature respectively. Limiting its findings to only literatures written and published in English Language. The finding of this study shows that, digital transformation transmits the constant evolution of organizational strategies that integrate and align digital facility to essential business functions and operations which enables significant sources of main skill as organizational learning tool for strategic flexibility, and effective management that reduce human labor and speed stock availability to merge the customer demand and increase economic growth and competitive advantage.

Impact of Dividend Decisions on Financial Performance of Listed Financial Sector Companies in Sri Lanka

Sudarshi Nawarathne, Niluka Anuradha — Thu, 10 Mar 2022 11:43:42 +0530

Sri Lankan economy faced extremely challenging conditions during the period of 2015-2019 where the GDP growth remained below average whilst financial sector performance also had weakened raising concerns. Hence, this study revolves around investigating the effects of dividend decisions on the financial performance of listed companies in the financial sector comprising banks, finance, and insurance companies during the period of 2015-2019. Based on the literature review, Dividend Per Share and Dividend Payout were determined as the indicators for the dividend decisions whilst Return on Equity and Return on Assets were used as the indicators for the financial performance. Control variables of leverage, Firm Size, and Firm Growth Rate were also used for the panel regression analysis where 20 listed companies have been selected as the sample. Correlation analysis found a weak correlation between dividend decisions indicators and financial performance indicators while panel regression analysis revealed that only Return on Assets has a significant impact from dividend decision indicators of Dividend Per Share and Dividend Payout.

The study recommends managers of finance companies adopt a more consistent dividend policy whilst suggesting the separation of dividend type and its impact on financial performance for future studies.

A History of Travel with Economic Systems

Selvaraj M, Dr. Saritha R — Thu, 10 Mar 2022 11:40:44 +0530

The term ‘economy’ was coined, created, manifested and also finally complicated by human beings. The evolution path of travel with economic systems explores the difficulties, institutional transformations and uniqueness of the different systems of the world economic history. This paper analysis the backdrops of different economic systems and the way in which the path has been laid to transform by losing its originality to the new paradigms of people welfare centric system. Finally, this paper projects the mechanisms of various economic systems into the shifts of new paradigms of unsolvable question of what is it all for?