International Research Journal of Finance and Economics
 Issue 182
 June, 2021
Testing for Random Walk in African Foreign Exchange Markets: Evidence from Multiple Variance Ratio Tests
Romuald Kenmoe Siyou, Marius Ayou Bene and Cyrille Onomo

This paper examines the random walk hypothesis for thirteen African foreign exchange markets.The hypothesis is tested with variance ratio tests based on power transformation,wild bootstap and multiple ranks from daily and weekly data. The use of a battery of recent joint variance ratio tests provide further evidences against the random walk behavior than the conventional variance ratio test. The iid hypothesis is rejected in all 13 markets. In four African exchange currency markets, Egypt, Kenya, South-Africa and Zambia, daily returns are a martingale difference sequence. Extreme values are important factors which contribute to whether exchange rates follow random walk. < /br>
Keywords: Exchange Market Efficiency,Random Walk, Dollar Exchange rates, Variance Ratio Test
Real Exchange Rate and Trade Balance in West African Economic and Monetary Union: Cointegration and Marshall-Lerner Condition

This study examines the effect of real exchange rate on trade balance for the West African Economic and Monetary Union (WAEMU). The analysis is done in the panel framework for the period from 1975 to 2017. As modeling methodology, it first employs the panel cointegration tests which witness the existence of a long run relationship among trade balance, real exchange rate, domestic and foreign income. The results from the FMOLS, DOLS and PMG estimations show that trade balance improves with both domestic income and real exchange rate depreciation in the long run but deteriorates with foreign income. Thus, the findings of the study prove that Marshall-Lerner condition holds for WAEMU zone.
Keywords: Trade balance; real exchange rate; panel cointegration; MarshallĖLerner condition; WAEMU
JEL Classification: C23, F10, F31, O55
Measuring the Contribution of Mobile Money Services to Financial Inclusion: The Case of Hormuudís Evc-Plus in Somalia
Abdinur Ali Mohamed and Mohamed Ibrahim Nor

The purpose of this study is to measure the contribution of the mobile money services to the financial inclusion; case in EVC-PLUS services. This study applied Unified Theory of Acceptance and the Use of Technology (UTAUT) to examine the user behavior of the mobile money. Financial inclusion was measured to access the financial services, quality of the financial products, usage of the financial services and the welfare of the financial products. A sample of 245 respondents were contacted and the data is analyzed using both descriptive and inferential statistics to estimate the model parameters. The strength of the model is tested as we found that the model is strong enough to correctly estimate the model parameters. Structural equation model is used to examine the interrelationship between mobile money, components of the financial inclusion and the financial inclusion as a dependent variable.
This study found that mobile money has a positive and direct contribution to the financial inclusion in Somalia. The welfare of the financial product is the key factor that contributes to the financial inclusion, usage of the financial services, quality of the financial products and the access to the financial service all have a positive and significant relationship with financial inclusion. Mobile money is also positively linked to the components of the financial inclusion as it prompts the usability of the financial products as well as their welfare benefits. We found that the gap between the genders is very minimal and that women have the same privilege as men in the context of the financial inclusion.
Keywords: Access to financial service, Quality of the Financial Products, Usage of the financial Service and the Welfare of the Financial products
Mutual Causality between Mutual Fund Fees, Board Structure, and Performance: Empirical Evidence from the Egyptian Stock Market
Nancy Youssef

This paper investigates dynamic interaction between mutual fund fees, board structure, and performance. This paper provides an unbiased estimate of a structural equation model taking endogeneity into account. This paper provides an empirical assessment of the possible conflicts of interest in respect of different types of fund fee structures in the Egyptian mutual fund industry. Experimental results show a significant negative relationship between the expenses ratio and fund performance. Given the important role of mutual fund industry in Egypt, this is the first study of its kind explores the causality between fees, board structure, and performance in the mutual fund.
Keywords: Mutual Funds, Conflict of interest, Asymmetric information, Corporate Governance, Structural Equation Model
JEL classification: G34, G23, C3
Analyzing Labor Mobility Policies in Asean: A Case Study in Vietnamís Education Sector
Quyen Tran, Huong Le, Huong My Le and Hanh Nguyen

Since the establishment of the ASEAN Economic Community (AEC) on 31st December 2015, the members have achieved a significant milestone in the regionís comprehensive and growing political, economic, and cultural integration, and each state has actively involved in this process by their own. This paper aims to provide of particular policies in education sector of Vietnamese government on moving labor among ASEAN members while exercising the regionís specific commitments to open freely common market under the AEC framework towards sustainable development. We therefore apply deductive approach involving depth interview of proffesionals, academic in service sector and fieldtrip in some Vietnamís universities to investigate the practical evidence to expose the policies in developing education system. The findings of the study reveal the suggestions for supporting the Vietnamese government and stakeholdersí engagement to promote high quality human resource in service sector in the Community.
Keywords: ASEAN Economic Community, Labor mobility, Vietnamís education sector, universities