Template-Type: ReDIF-Article 1.0 Author-Name: Chan-Guk Huh Author-Name-First: Chan-Guk Author-Name-Last: Huh Author-Email: chanhuh@cnu.ac.kr Author-Workplace-Name: Department of International Trade, College of Economics and Management, Chungnam National University Author-Name: Jie Wu Author-Name-First: Jie Author-Name-Last: Wu Author-Email: chanhuh@cnu.ac.kr Author-Workplace-Name: Department of International Trade, College of Economics and Management, Chungnam National University Title: Linkage between US monetary policy and emerging economies: the case of Korea?s financial market and monetary policy Abstract: This study offers empirical evidence on the linkage between the US monetary policy and Korean financial market volatilities, and the efficacy of Korea?s? monetary policy in the past decade and a half. First, we find evidence showing significant effects of interest spreads between short and long term interest rates of Korea and the US, and other US variables on the volatility of won-dollar exchange rate as well as Korean stock market index. Second, we find evidence that suggests that capital inflow into Korea might have weakened the efficacy of its monetary policy since the mid-2000s, a period notable for the increased accession by foreign investors to the Korean bond market and the US quantitative easing (QE) policy. A distinct change in the propagation mechanism of monetary policy, in which short term policy rate affects long term interest rates, is observed in Korea since the mid-2000s. In the latter sample period, US monetary policy appears to have had more influence on Korean market interest rates than Korea?s policy rate. In addition, we examine structural issues of the balance sheet of Korea?s? central bank in view of recent rise in interests in the financial health of central bank balance sheets and monetary policy credibility in the wake of QE policies in advanced economies. Classification-JEL: C13, C32, E44 Keywords: Monetary policy, International transmission, Volatility, Central bank balance sheet. Journal: International Journal of Economic Sciences Pages: 1-18 Volume: 4 Issue: 3 Year: 2015 Month: September File-URL: https://iises.net/international-journal-of-economic-sciences/publication-detail-278 File-URL: https://iises.net/international-journal-of-economic-sciences/publication-detail-278?download=1 Handle: RePEc:sek:jijoes:v:4:y:2015:i:3:p:1-18 Template-Type: ReDIF-Article 1.0 Author-Name: Christine Nanjala Simiyu Author-Name-First: Christine Author-Name-Last: Nanjala Simiyu Author-Email: csimiyu@kca.ac.ke Author-Workplace-Name: KCA University Title: Explaining the Relationship between Public Expenditure and Economic Growth in Kenya using Vector Error Correction Model (VECM) Abstract: The rapid growth in public expenditure in Kenya since independence has caused concern among policy makers on its implication on economic growth. The main aim of this study therefore was to explain the relationship between economic growth and public expenditure on Health, Education, Military and Infrastructure in Kenya. The study used a time series data collected between 1963 - 2012. Johansen Cointegration Test and Vector Error Correction Model (VECM) was applied on the time series data to estimate the short-run and long-run relationships between public expenditures and economic growth in Kenya. The results suggests that public expenditure components and economic growth co-move towards a long run equilibrium with a speed of adjustments of approximately 3.6% after short run fluctuations in the equilibrium. Furthermore, the results show no casual relationship between public expenditure and economic growth in Kenya. However, there exist a unidirectional causation between Military and Health expenditures - Military expenditures "Granger Cause" Health expenditures. Hence, a change in Military expenditures cause a change in Health expenditures. These findings suggests that the Government of Kenya switch military expenditures for health expenses in Kenya, but not vice versa. Classification-JEL: H50, O47, C32 Keywords: Vector Error Correction Model (VECM), Granger Causation, Public expenditures Components, Economic Growth, Kenya Journal: International Journal of Economic Sciences Pages: 19-38 Volume: 4 Issue: 3 Year: 2015 Month: September File-URL: https://iises.net/international-journal-of-economic-sciences/publication-detail-279 File-URL: https://iises.net/international-journal-of-economic-sciences/publication-detail-279?download=2 Handle: RePEc:sek:jijoes:v:4:y:2015:i:3:p:19-38 Template-Type: ReDIF-Article 1.0 Author-Name: Ale? Rod Author-Name-First: Ale? Author-Name-Last: Rod Author-Email: ales.rod@vse.cz Author-Workplace-Name: University of Economics Author-Name: Klára ?ermáková Author-Name-First: Klára Author-Name-Last: ?ermáková Author-Email: klara.cermakova@vse.cz Author-Workplace-Name: University of Economics Title: Specifics of Operational funding of enterprises under centrally planned economy ? theory and praxis in Czechoslovakia before 1989 Abstract: This paper deals with the system of operational funding of enterprises in a centrally planned economy. The analysis focuses on the case of Czechoslovak Socialist Republic before 1989. A tool analyzed in the paper ? credits for constantly revolving working capital ? had played the main role in the planned Czechoslovak economic system. These credits for constantly revolving working capital can be described as specific frameworks for loans based on forecasts and plans of volume of production made by Czechoslovak state institutions. The system had created inefficiencies in the economy and its heritage seriously influenced processes in the period of transformation after 1989, as the paper concludes. Classification-JEL: E50, B24 Keywords: central planning, socialism, banking, corporate finance, operational funding, credits for constantly revolving stocks, inefficiencies Journal: International Journal of Economic Sciences Pages: 39-51 Volume: 4 Issue: 3 Year: 2015 Month: September File-URL: https://iises.net/international-journal-of-economic-sciences/publication-detail-214 File-URL: https://iises.net/international-journal-of-economic-sciences/publication-detail-214?download=3 Handle: RePEc:sek:jijoes:v:4:y:2015:i:3:p:39-51 Template-Type: ReDIF-Article 1.0 Author-Name: Filip ?ramko Author-Name-First: Filip Author-Name-Last: ?ramko Author-Email: fsramko@gmail.com Author-Workplace-Name: University of Economics in Prague Title: The impact of Securities Transaction Tax on market quality: Evidence from France and Italy Abstract: This paper analyzes two recent securities transaction tax (STT) implementations in France and Italy in order to identify the effects of STT on market quality. The effects are observed on panel data in four periods utilizing several trading activity and market quality measures. Difference-in-Differences are estimated using several control groups including German and Spanish equities. The results suggest significant decrease in trading activity and liquidity in French taxed stocks following the STT levy. The effect of STT on volatility is statistically insignificant across different control groups and estimation periods. The need to account for seasonal effects is also demonstrated. In Italian case, the results are inconclusive due to possible contamination by political events, but the evidence points to decrease in trading activity following the reform. The evidence regarding volatility and liquidity in Italian case is mixed. Classification-JEL: G18, G12, G14 Keywords: Financial Transaction Tax, Market Quality, Volatility, Liquidity, Securities Transaction Tax Journal: International Journal of Economic Sciences Pages: 52-93 Volume: 4 Issue: 3 Year: 2015 Month: September File-URL: https://iises.net/international-journal-of-economic-sciences/publication-detail-277 File-URL: https://iises.net/international-journal-of-economic-sciences/publication-detail-277?download=4 Handle: RePEc:sek:jijoes:v:4:y:2015:i:3:p:52-93 Template-Type: ReDIF-Article 1.0 Author-Name: Pavla Vozárová Author-Name-First: Pavla Author-Name-Last: Vozárová Author-Email: pavla.vozarova@vse.cz Author-Workplace-Name: University of Economics, Prague Title: The Role of FDI in Fostering Exports from the Host Country Abstract: In this paper, I propose a theoretical model analyzing the impact of FDI on exports from the host country. Using the framework of monopolistic competition with heterogenous firms, I show that the entry of highly efficient MNEs increases competition in the export market, which leads to crowding-out of domestic exporters. As a result, even though overall efficiency of the industry increases, exports by this industry may decrease.Further on, I add into my model a potential spillover effect that FDI can induce by lowering costs associated to export activities for all firms. I show that in such situation, the increased efficiency is more likely to outweigh the negative competition effect, resulting in larger exports from the host country. Classification-JEL: F23 Keywords: FDI, MNE, spillovers, exports Journal: International Journal of Economic Sciences Pages: 94-114 Volume: 4 Issue: 3 Year: 2015 Month: September File-URL: https://iises.net/international-journal-of-economic-sciences/publication-detail-276 File-URL: https://iises.net/international-journal-of-economic-sciences/publication-detail-276?download=5 Handle: RePEc:sek:jijoes:v:4:y:2015:i:3:p:94-114