Journal of Economic Impact 2021-07-26T00:00:00+00:00 Dr. Iqbal Javed Open Journal Systems <p class="justify">Journal of Economic Impact (JEI) welcomes all research articles relevant to economics and other relevant social science subjects. The journal of Economic Impact aims to provide an opportunity and a forum to communicate relevant and current issues in the area of Economics and its allied subjects. The objective of this journal is to publish prolific novel scientific work while making them freely available for the scholarly world. Journal of Economic Impact is an open access journal. Abstracts and full texts of all articles published in the Journal of Economics Impact can be read online without any form of restriction.</p> Africa’s Trade with China and US: Has COVID-19 Changed the Trends of Trade? 2021-04-02T10:12:48+00:00 Adesola Ibironke <p>Africa’s trade with China and the US is one of the international issues affecting development in the continent. This paper, therefore, examines the effects of COVID-19 on Africa’s trade with the two countries by investigating whether the pandemic has changed the trends of the trade. The article explores the responses of the individual trade of China and the US with Africa to their own shocks, without and with the pandemic, using the vector autoregressive (VAR) model and monthly data covering 1970m01 (January 1970) to 2020m07 (July 2020). The results show that China’s trade performs better while responding to a shock to America’s trade than America’s trade does while responding to a shock to China’s trade, without and with COVID-19. This finding suggests that China has a stronger trade footing in Africa and that COVID-19 had not changed the trends of Africa’s trade with China and America, even with the impact of the pandemic on China. China’s dominant trade status in Africa is probably due to the country’s large investment and aid in the continent. The key policy focus of Africa on trading with China and the US should therefore be how to achieve optimum trilateral trade thresholds in the face of potential trade-offs.</p> 2021-07-26T00:00:00+00:00 Copyright (c) 2021 Adesola Ibironke The Impact of Stock Price Crash Risk on the Cost of Capital: Empirical Study from China 2021-06-03T11:42:26+00:00 Muhammad Hamza Khan Muhammad Rizwan <p>This study analyses the effect of Sock Price Crash Risk (SPCR) on the cost of capital in Chinese listed firms in the Shenzhen stock exchange and the shanghai Stock Exchange. We take a sample of 290 firms based on the highest value of assets of each firm. The cost of capital consists of two factors; the cost of equity (COE) and the cost of debt (COD). The SPCR is measured by using two statistics, one is NCSKEW means the negative coefficient of skewness of the firm-specific weekly returns and the second is DUVOL that means Down to-Up Volatility used to measure the crash likelihood weekly return of firm-specific and use the Modified PEG ratio model of Eston approach to measuring the cost of equity. We use panel data to run the regression model analyses. We find SPCR is a significantly positive relationship with the cost of equity and cost of debt. Also, the sample was divided into the State-Owned enterprise (SOEs) and Non-State-Owned enterprise (NSOEs) for comparison. The results show that impact of SPCR on the COE and COD stronger in SOEs than NSOEs. The regulators need to improve and strengthen the development of laws and regulations related to company information disclosure, to reduce the cost of capital of listed companies and improve the efficiency of financing the Chinese capital market. Companies need to work together to strengthen internal controls, create a good disclosure environment, and prevent the SPCR.</p> 2021-06-23T00:00:00+00:00 Copyright (c) 2021 Muhammad Hamza Khan, Muhammad Rizwan The Role of Women Education in Economic Growth: An Evidence from Pakistan 2021-06-24T17:56:41+00:00 Kiran Zahra Khalida Parveen Muhammad Tanveer Khaliq <p>Education is the most fundamental right in the current situation and it is essential element of economic growth. No country can achieve economic development and goals without investing in education. The Pakistan’s economic development is possible only when education is equal for both men and women because female is 49% of the total population but the government did not give importance to the sector as it deserved. This study investigates the determinants of female higher education in Pakistan and impact of women education on economic growth of Pakistan. This study utilized time series data from 1991 to 2019. Autoregressive distribution model (ARDL) is applied to estimate the impact. The result shows that in Pakistan education expenditure has no any positive impact on female education while a positive relationship between female higher education and GDP growth exists but this relation is not strong in short run and long run as well. It is recommended that government should rethink about the education policy to make it more effective.</p> 2021-07-18T00:00:00+00:00 Copyright (c) 2021 Kiran Zahra, Shahbaz Ahmad Price Elasticity, Block Pricing, and Saving Behaviour of Residential Electricity Consumers in Pakistan: Investigation Based on Household-Level Primary Data 2021-07-03T11:44:24+00:00 Sania Malik <p>The purpose of this paper is to explore the efficacy of increasing block electricity pricing (IBEP) which was imposed in 2013 by Pakistani government. The main objective of this policy is rational resource allocation and to lower the cross subsidization to residential sector by two other major sectors such as commerce and industry. The study is based on primary data which is collected through questionnaires from four tehsils of district Sargodha in rural as well as urban region. About 54.6% households understand the electricity price scheme (IBEP) in urban users are more aware as compare to rural but urban electricity consumption is higher due to high use of home appliances. By using regression model the elasticity of residential electricity consumption is estimated for heterogeneous consumers. The upper blocks of electricity consumption are more sensitive to price increases except in fifth block which indicates that higher income group pays more attention to standard of living. The increase in number of trees also affects price elasticity of residential electricity use and positively influence saving behavior. The policy which was implemented with welfare point of view has achieved its target to certain extent. Future guidelines for the upgradation of electricity pricing reform in residential sector are thus proposed.</p> 2021-07-09T00:00:00+00:00 Copyright (c) 2021 Sania Malik Does Road Traffic Congestion Increases Fuel Consumption of Household in Kathmandu City? 2021-06-03T11:26:32+00:00 Raghu Bista Surendra Paneru <p>The growth of vehicle and road traffic congestion is characteristics of urbanization and urban city and indicators of urban life in developing countries. In Nepal, non-economic factors and non-state factors have accelerated unexpectedly and haphazardly urbanization process, although the country was reengineered into seven provincial federal structure. In this backdrop, this paper empirically examines the growth of traffic congestion and its impact on urban household and livelihood based on 160 vehicle owners and users’ survey at six major traffic routes of two urban cities by applying mixed analytical methods (qualitative cum quantitative), descriptive statistics and multiple regression model. The descriptive statistics result of the study reveals nearly 94 percent acceptance level of vehicle owners and users about the growth of traffic congestion. Despite short distances of the road i.e. 2-4 kilometers and vehicle efficiency, the growth of traffic congestion increases 14036-liters fuel additional consumption. Per month, additional cost of fuel is estimated at 18,808 US dollars for a sum of distance i.e. 72,992 km between residence location and workplace each month. In the case of commuters, the estimation result of the study is 1188 hours of additional time loss with 6706 US dollars’ worth per month. The estimation of total economic loss is 25514 US dollars per month. Specifically, per month, economic loss of doctors and taxi drivers is 6556 US dollars but teachers and bankers have not economic loss.</p> 2021-07-26T00:00:00+00:00 Copyright (c) 2021 Raghu Bista, Surendra Paneru