Daniel Adeoluwa Adeniyi and Mulugeta F. Dinbabo

DOI: https://doi.org/10.6000/1929-7092.2019.08.25

Published: 8 April 2019

Abstract:
Motivation: Food insecurity remains a continuing global challenge in most parts of the developing world, including Nigeria. While considerable resources have been devoted to tackling the menace owing to its negative impacts on health and well-being, progress is rather slow and uneven across regions and countries. Indeed, much is yet to be explored on the conditions that result in food insecurity. The paper investigates household food security and the socio-economic factors that determine it among smallholders in the Middle Rima Valley Irrigation Project, Sokoto State, Nigeria.

Novelty: The combination of both the Household Dietary Diversity Score (HDDS) and Food Consumption Score (FCS) to measure food security and the regression of these variables against socio-economic characteristics of smallholder households represent an innovative way of assessing the effect of socio-economic characteristics on food security status of smallholder households which has scarcely been done in literature.

Methodology and Methods: Quantitative data were successfully collected from 306 randomly selected households using a well-structured questionnaire. The HDDS and FCS were used to assess household food security level, and multivariate regression was used to examine factors associated with food security.

Data and Empirical Analysis: Results indicate that at least 45% of the households were food insecure. The relationship between HDDS and FCS was found to be moderate, but positive and statistically significant. This thus validates the food insecurity phenomenon in the study area. Food insecurity is influenced by household income, education, training, farming experience, livestock ownership, and farm size. The latter however emerged as the most significant factor influencing food security of smallholder households.

Policy Considerations: Targeted interventions are recommended in the areas of social protection initiatives, human capacity development through farmer training, and market access. The latter is imperative as smallholders may lack the motivation to increase production in an era of inadequate access to market. Furthermore, there is also the need to improve infrastructure to enhance access to market, encourage sustainable intensification and provide access to credit facilities for increased cultivation.

Keywords: Food security, smallholder, agriculture, irrigation, productivity.

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Sehludi Brian Molele and Thobeka Ncanywa

DOI: https://doi.org/10.6000/1929-7092.2019.08.26

Published: 8 April 2019

Abstract: South Africa has targeted the oil and gas sector for investment through the industrial action plan as a special economic zone. This paper focussed on the effects of oil prices and exchange rate movements in the oil and gas stock returns using the GARCH - GED model to incorporate volatility. Additionally, the paper estimates causality effects through the pairwise Granger causality techniques using secondary monthly data for the period 2007 - 2015. The findings where that change in oil prices had a positive and significant mean effect on oil and gas sector stock returns. Furthermore, changes in exchange rates had a negative and significant mean effect on the sector returns. Volatility clustering was found to be present in the sector stock returns, but volatilities associated with each of the significant variables do not last for long before it fades away. It is highly recommended that market players or investors and portfolio managers should have a keen interest on the exchange rate. While policy makers and regulators should strive to have stable exchange rate movements to offset unexpected or sudden decline of the exchange rate, depreciation. This has the detriment of additional costs through oil prices purchase by companies in the sector.

Keywords: Oil Prices, Exchange rate, Stock Returns, volatility, GARCH Model.

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Olalere Oluwaseyi Ebenezer, Md. Aminul Islam, Wan Sallha Yusoff and Farid Ahammad Sobhani

DOI: https://doi.org/10.6000/1929-7092.2019.08.27

Published: 10 June 2019

Abstract: The purpose of this paper is to examine the effects of liquidity risk and interest rate risk on profitability and firm value, current studies are typically limited in emerging markets. This study employs a panel data estimation technique and a sample of 16 banks operating in Nigeria over the period from 2009 to 2017 making up to 144 observations. The findings of the study reveal that liquidity risk (loan to deposit ratio and liquid asset ratio) have a significant negative effect on firm value, the net interest margin and GDP have a negative significant impact on firm value for Nigerian banks. The loan to deposit ratio have a negative significant effect on firm value while the liquid asset ratio have a positive effect on firm value. The net interest margin have a negative significant effect on firm value while the asset interest margin have a positive significant impact on firm value. The GDP and inflation both have a positive significant relationship with firm value. The liquidity risk (loan to deposit ratio and liquid asset ratio) have a significant negative impact on return on equity of Nigerian banks. The GDP growth rate have a positive significant effect on the value of firm. Hence, this empirical study emphasizes and contributes to the dynamic role of liquidity risk and interest-rate risk and it’s implication on profitability and firm value of banks in Nigeria and suggest that further study can explore a comparative study between Nigeria and financial firms in developed economy.

Keywords: Firm value, profitability, liquidity risk, interest-rate risk, Nigeria.

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Carlos Dabús and Fernando Delbianco

DOI: https://doi.org/10.6000/1929-7092.2019.08.28

Published: 02 July 2019

Abstract: This paper explores the effects of the ratio exports/GDP and the terms of trade on growth among countries with different level of development and openness. These effects vary among subgroups of countries with different openness and per development level. Nonetheless, in general the evidence seems to support the hypothesis stated in this research. In less developed or better endowed for export countries one or both of the explanatory variables mentioned above encourage for economic growth. Specifically, in advanced economies only the ratio exports/GDP is growth promoting when these are open, and have high per capita but small global GDP and/or relative advantages to be growth export-led. In turn, exports or and the terms of trade trends to promote growth in lower middle income countries. Unfortunately, the surprising results came from the poorest countries. They do not are benefited from a more favourable foreign environment. On the contrary, exports are not significant while an improvement in the terms of trade diminishes their growth.

Keywords: Economic growth, degree of openness, developed level.

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Olalere Oluwaseyi Ebenezer, Md. Aminul Islam, Wan Sallha Yusoff and Shafiqur Rahman

DOI: https://doi.org/10.6000/1929-7092.2019.08.29

Published: 02 July 2019

Abstract: This study explores the issues relating to liquidity risk and interest-rate risk, recognizing that existing studies are mostly vague in emerging and developing markets. Panel data estimation technique is employed in the study based on data extracted from 63 commercial banks in ASEAN-5 countries over the period 2009 to 2017 making up to 567 observations. The empirical results reveal that loan to deposit ratio have a positive significant effect on firm value while liquid asset ratio, interest rate risk (net interest margin and asset interest yield) have a negative significant effect on firm value for ASEAN. The loan to deposit ratio have a positive significant impact on return on asset, interest rate risk and banks size have a significant negative effect on return on asset for ASEAN banks while GDP and inflation have a positive significant effect on return on asset. Also, the liquidity risk have a negative significant effect on return on equity while the interest rate risk have a positive significant effect, bank size have a significant negative effect on return on equity while inflation rate have a positive significant impact on return on equity. Hence, this empirical study provides implications that emphasizes on the need for banks to adhere to prudential and regulatory guidelines and ensure corporate management with respect to liquidity exposure that is capable of critically affecting banks profitability and firm value. The dynamics of interest rate volatility in banks operating environment necessitates that financial institutions use sound risk management practices in order to obtain higher valuations, achieve better financial performance and experience diminished costs of financial distress that’s useful for policy implementations in ASEAN economies and suggest that further study can explore the interaction between abnormal loan growth and non-performing loans with a robust econometrics model.

Keywords: Liquidity risk, interest-rate risk, profitability, firm value, ASEAN.

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