Open Access Original Research Article

Toda and Yamamoto Causality Test between US $ Exchange Rates and Stock Market Prices in Sri Lanka

Mohamed Ismail Mohamed Riyath

South Asian Journal of Social Studies and Economics, Page 1-9
DOI: 10.9734/sajsse/2018/v2i325852

Aim: The paper empirically analyzes the dynamic relationship between stock market and exchange rate in Sri Lanka.

Study Design: The long-run relationship between All Share Price Index and Sri Lankan Rupees - US Dollar (LKR/USD) exchange rate is tested using Johansen co‑integration test, and the short‑run dynamic causal relationship is tested using Granger’s causality and Toda and Yamamoto [1] causality test.

Place and Duration of Study: The study use daily data from the 02nd of October 1998 to 07th of September 2018. 

Results: The results show that there is no long-term equilibrium relationship between All Share Price Index and US Dollar-Sri Lankan Rupees exchange rate. According to Granger’s causality and Toda-Yamamoto causality tests, the results indicate that there is a unidirectional causality running from All Share Price Index and US Dollar-Sri Lankan Rupees exchange rate in the short run.

Conclusion: The study concludes that stock market causes on Exchange rate in Sri Lankan economy in the short run, but not vice versa.

Contribution: This study is useful for macroeconomic policymakers and financial managers to have a better understanding of the movements between among the variables. The better understanding of short-term movements of these two variables helps to make the more informed investment and financing decisions.

Open Access Original Research Article

Factors Influencing Economic Viability of Small Farmer of Rice Production in Bangladesh

Farzana Yeasmin, Ismat Ara Begum, Fardous Ara Happy, Dilshad Zahan Ethen

South Asian Journal of Social Studies and Economics, Page 1-9
DOI: 10.9734/sajsse/2018/v2i325859

The focus of this study was to conduct research on small rice farmers and to identify the factors and their influence in viability of rice production in Bangladesh. The study was conducted using a longitudinal survey made under the Village Dynamics in South Asia (VDSA) project of International Crops Research Institute for the Semi-Arid Tropics (ICRISAT). A total of 179,179,156 and 177 small rice farms were selected as a sample for the years of 2009, 2010, 2011 and 2012, respectively. Among 691 small farmers, 562 farmers were viable farmer and 129 farmers were non-viable farmers who were producing rice in the study area. The small farmers lived in the same socio-economic environment. The economic surplus of small farmer was 11018.5 tk. 12205 tk., 6006 tk. and 4461 tk. in different years. To achieve the objective discriminant function analysis was used. For this analysis eight discriminant factors were selected i.e. family size, farm size, education, value productivity from crops, net income from dairy, off-farm income, total fixed investment and domestic expenditure. It is found that off-farm income was the most significant discriminat factor among the eight factors related to the discriminating of viable and non- viable of small farmers of rice production Besides value from crops, total fixed investment and domestic expenditure were the other significant factors found during all the years.

Open Access Original Research Article

Value Chain Analysis of Potato in Ilam District, Nepal

Keshav Prasad Shrestha, Surendra Yadav

South Asian Journal of Social Studies and Economics, Page 1-13
DOI: 10.9734/sajsse/2018/v2i325861

The purpose of the study was to analyze the value chain of potato in the Ilam district. Potato is one of the major stable food and source of income for the majority rural farmers of the Ilam district. Using random sampling techniques, data were collected using semi-structured household survey with 165 respondents, 50 traders, input and service providers and along with 5 focus group discussion. Data were analyzed using SPSS and excel software. Results of the compound annual growth analysis showed that area, production and productivity is increasing significantly by 8.12, 2.87 and 2.79% respectively over 19 years in the country and 3.78, 2.84, and 3.55 respectively in the Ilam district. The farmers are generally growing local variety however; they also grow some improved varieties. The benefit cost ratio of local varieties is very low (0.68) whereas for improved varieties higher (1.73). Farmers do not adopt the grading and packaging which is generally done by the traders. The import of potato sharply increasing over the years which was 46,097 t worth of NPR 35.74 million in 2008/09 and reached to 249,368 t worth of NPR 531.25 million in 2016/17 which is 14.86 fold increases in value within 8 years. The value chain analysis reveals that, the margin received by the farmers is 27% of the retail price whereas traders and wholesalers deals in big quantities and extract substantial margin. The major constraints of potato production are diseases accompanied by weak availability of seed, high production cost, decreasing labor availability, and weak backward and forward linkage. Therefore, findings suggest that, government and developing agencies should support farmers organizations for the adoption of new variety, involve in quality seed production, integrated management of diseases, reduce cost of production, develop agricultural marketing infrastructures to boost up the production and make market access to the farmers.

Open Access Original Research Article

Analysis of Socio-economic Factors and Profitability of Hybrid Maize Production in Eastern Terai of Nepal

Surya Prasad Adhikari, Keshav Prasad Shrestha, Shukra Raj Shrestha

South Asian Journal of Social Studies and Economics, Page 1-7
DOI: 10.9734/sajsse/2018/v2i326570

The study was conducted to analyze the socioeconomic factors and profitability of hybrid maize production in eastern Nepal. A household survey was conducted from March to April, 2017 in two districts Morang and Sunsari to collect information on socioeconomic characteristics and economics of maize production. The Structured questionnaire was administered to 98 randomly selected households from two districts i.e. 41 from Morang and 57 from Sunsari district. Descriptive and statistical tools including multiple regression model were used to analyze the data. The multiple regression model showed that larger the maize area, higher the education of household head and households who received maize farming related training were significant and positive towards maize output. Farmers of Morang district have higher maize production than Sunsari district. The benefit-cost ratio (1.7) indicates that hybrid maize farming was profitable with productivity of 6.9 ton per hectare. Despite the importance of maize crop to household income, many constraints were reported in its productivity including lack of irrigation, a high cost of inputs and the incidence of pests and diseases. Ensuring access to irrigation, training on maize farming, mechanization and efficient extension services were recommended to increase hybrid maize production in eastern Nepal.

Open Access Commentary

Integration of Rural and Urban Society in China and Implications for Urbanization, Infrastructure, Land and Labor in the New Era

Haiying Feng, Victor R. Squires

South Asian Journal of Social Studies and Economics, Page 1-13
DOI: 10.9734/sajsse/2018/v2i329634

In many parts of China, rapid economic growth, socio-economic inequality, and environmental degradation (air, water, soil) are undermining social stability and sustainable urbanization. Rural-urban migration is the main factor contributing to urban population growth. Economic opportunity in urban areas is the main ‘pull factor’ but government policies provide a ‘push factor’. A model of the relationship over time of the rural sector and the urban sectors, mainly relating to the focus on manufacturing and the services sector, is discussed. Each sector provides a market for the other. We use three cameos of different types of urban-rural development taking examples from a Prefecture-level city of about 500,000 population located in Guangxi Autonomous Region in south east China. We analyze the infrastructure plan and land use planning in respect to the impact on labor, investment and urban growth.