Tantatape Brahmasrene

Assessing Success on the Uniform CPA Exam: A Logit Approach.

Abstract In this study, the authors surveyed Indiana certified public accountant (CPA) candidates to investigate factors that may determine the likelihood of passing the Uniform CPA Exam. The authors used a logit model to test the likelihood of success in the exam as a function of factors such as undergraduate grade point average (GPA), credit hours, high school GPA, high school class size, age, high school rank, educational level, type of preparation, nature of experience, gender, and race. By and large, a full model and the models resulting from forward and backward stepwise selection indicated that undergraduate GPA, age, private accounting experience, and gender are significant determinants in success in the CPA exam.

ICT, CO2 Emissions and Economic Growth: Evidence from a Panel of ASEAN

Abstract This study examines relationships among information communications technology (ICT), carbon dioxide (CO2) emissions and economic growth. The panel annual data are constructed from 1991 to 2009 for nine members from the Association of Southeast Asian Nations. The study examines the long-run equilibrium relationship using cointegration techniques and the short-run relationships using cointegrating regression estimation methods. Test results indicate a long-run equilibrium relationship exists among these variables. Among these relationships, ICT shows significant to highly significant positive effects on both economic growth and CO2 emissions. Significant to highly significant inverse bidirectional relationships between economic growth and CO2 emissions are found in the region. Based on these empirical findings, further policy implications for economic growth, ICT and CO2 emissions are discussed.

Exploring real exchange rate effects on trade balances in Thailand

This study investigates the impact of real exchange rates on the trade balances between Thailand and its major trading partners. Previous empirical evidence gave mixed results of the impact of real exchange rates on trade balances. In this study, Augmented Dicky‐Fuller and Phillips‐Perron tests for stationarity followed by the cointegration tests are implemented. All variables in the model are nonstationary but cointegrated. In cointegrating regressions, biases are introduced by simultaneity and serial correlation in the error. The specification that deals with these problems is the non‐linear specification of Stock and Watson (1989). By using this non‐linear model as modified by Reinhart (1995), the results show that the impact of real exchange rates (Thai baht/foreign currency) on trade balances is significant in most cases. Therefore, the generalized Marshall‐Lerner condition seems to hold. Furthermore, the results show that the real exchange rates play a more important role in the determination of the bilateral trade balances than other factors. Since the real exchange rate variable plays a major role in this study, the policy recommendation is to prevent exchange rate misalignment. A policy that can neutralize the changes in nominal exchange rates and relative prices should be introduced to prevent further deterioration of the trade balance.

Capital mobility in Asia: evidence from bounds testing of cointegration between savings and investment

This paper explores the international capital mobility in North Asia (South Korea and Taiwan), South Asia (Indonesia, Malaysia, the Philippines, Singapore and Thailand) and India. In particular, the Feldstein–Horioka puzzle, which states domestic investment and savings are highly and positively correlated, was examined for cointegration using an autoregressive distributed lag bounds testing procedure. The results did not show a positive correlation between savings and investment. There was essentially no relationship at level between savings and investment in all eight cases. Thirteen out of 16 structural break tests or 81.25% indicate no structural breaks. The analysis concluded with certain limitations that there is high capital mobility in the economies under study.

Tourism effects on the environment and economic sustainability of sub-Saharan Africa

ABSTRACT This paper integrates tourism, economic growth, and environmental issues in a multivariate format. Unlike recent research on this topic, a panel data of selected sample nations of sub-Saharan Africa is adopted by using cointegration and panel regression models. The current research discovers both long-run equilibrium and short-run dynamics between economic growth, tourism, energy use, and carbon emissions in sub-Saharan Africa. Furthermore, tourism and energy use show a highly significant direct impact on economic growth. In addition, tourism, energy use, and economic growth yield a highly significant positive effect on carbon emissions. Dissecting the region into oil producers and non-oil producers further suggests that the economic growth of sub-Saharan Africa has been accomplished by strong growth in tourism and energy use. However, there is highly significant evidence that in oil producing countries, CO2 emissions are directly affected by energy use and economic growth and not by tourism. For non-oil producing countries, tourism and energy use but not economic growth incur a highly significant positive impact on carbon emissions.

An Exploratory Inquiry of the Feldstein-Horioka Puzzle in Selected Southeast Asian Countries

This study reexamines the Feldstein-Horioka puzzle in selected Southeast Asian countries: Indonesia, the Philippines, and Thailand. The long-run equilibrium is estimated using the bounds testing procedure by Pesaran, Shin, and Smith (2001) while the causal relationship between savings and investment utilizes Granger non-causality test of Toda and Yamamoto (1995). The estimators from these two procedures do not seem to support a positive correlation between savings and investment in these three countries as found by Feldstein and Horioka (1980).

Foreign exchange volatility and international pricing

This paper explores the hypothesis that the unresponsiveness of export pricing to exchange rate fluctuations may be partially the result of hedging activities by trading agents due to foreign exchange volatility (EV) to eliminate exchange risk. In essence, hedging against foreign exchange uncertainty affects the structure of pass-through relationship. The exchange rate pass-through issue is governed by a firm-specific factor like hedging, in addition to market share, product differentiation and market structure. A reduction in exchange risk exposure leads to a decline in the willingness rather than the ability to pass the cost shock to consumers. The estimation of foreign EV dummy interacting with one-year-lagged exchange rate on export pricing supports the hypothesis that there is a significant differential impact of high- and low-EV destinations on the degree of pass-through which, in turn, affects international pricing.

Empirical Evidence of Factors Affecting Experience Modification Rate Used by the U.S. Insurance Industry

ABSTRACT The improvement of safety programs is of significant importance to the economy of countries that move toward a global perspective. The objective of Experience Modification Ratings (EMR) is to encourage employers, through management incentives, to reduce the frequency and severity of work-related injuries. The insurance industry uses EMR to assess premiums. A U.S. national survey was conducted to investigate EMR determinants. EMR and its average (AEMR) are hypothesized to vary inversely with the number of training hours, number of safety audits, the companys annual revenue, and the annual cost of safety training per employee. The empirical findings indicated the number of training hours was significant while revenue was highly significant. This paper offers practical and policy implications with respect to these findings.

The effect of exchange rate expectations on market share

This study examines the impact of expectations on the market share mechanism. The dynamic strategic pricing behaviors in the short‐run and the long‐run are also explored. The exchange rate expectations are incorporated into a switching cost model via the method of exchange rate pass‐through on product‐specific and country‐specific approach. By using the time series techniques, the results of the system estimations prove that the market share mechanisms are weakened by exchange rate expectations in open economies. Furthermore, not only is the degree of exchange rate pass‐through higher in the short‐run than in the long‐run but also many cases of pair‐wise rivalry are found. An improved understanding of the effects of exchange rate movements on foreign exporters pricing and pass‐through relations from this study may enhance competition in international markets.

Pricing to pass‐through under volatile exchange rate scenario in the US manufacturing

A plethora of studies suggests the pricing decisions depend on product substitutability, costs, market structures, and the magnitude of exchange rate uncertainty in the international setting. Taking a departure from existing literature, this paper examines the average degree of exchange rate pass‐through to the prices of export product under low to high exchange rate volatility. A panel data estimation method is performed using the annual US export data to 69 export destinations across 111 four‐digit Standard Industrial Classification (SIC) industries. An average zero or insignificant pass‐through estimate for all industries in the high exchange‐rate‐fluctuation sub‐sample confirms the hypothesis. In this period of high exchange risk, the possible high hedging engagements disconnect the relationship between exchange rate movements and export pricing.