https://so01.tci-thaijo.org/index.php/AEJ/issue/feed Applied Economics Journal 2020-03-03T19:33:52+07:00 Waleerat Suphannachart aej.journal@gmail.com Open Journal Systems <p>Applied Economics Journal (ISSN: 2586-9124) is a double blind peer-reviewed journal devoted to the applications of economic theories, concepts and methodologies to analyze well-defined research issues. It encourages empirical analysis, simulation, prediction and forecasting research. While it is aimed at academics and policy makers interested in the Thai and Asian economies, the journal also considers articles that deal with global issues. The primary criteria for selecting papers are originality, quality, and contribution to the field. The categories of articles include commentary, review articles, research articles and book reviews. &nbsp;AEJ is indexed in the Thai-Journal Citation Index Centre (TCI), IDEAS/RePEc, CAB Abstracts, Google Scholar, ASEAN Citation Index (ACI) and Emerging Sources Citation Index (ESCI). Two issues are published a year, in June and December. All articles are open access. No submission fee and page charge.</p> https://so01.tci-thaijo.org/index.php/AEJ/article/view/240052 Editorial 2020-03-02T09:45:55+07:00 Rewat Thamma-Apiroam fecoret@ku.ac.th 2019-12-23T00:00:00+07:00 Copyright (c) https://so01.tci-thaijo.org/index.php/AEJ/article/view/240117 Contents 2020-03-03T19:19:58+07:00 Rewat Thamma-apirom fecoret@hotmail.com 2019-12-23T00:00:00+07:00 Copyright (c) https://so01.tci-thaijo.org/index.php/AEJ/article/view/230967 The Impact of Demographics on Inflation in Thailand 2020-03-01T07:13:35+07:00 Kumpon Pohnpattanapaisankul kumpon.kt@gmail.com <p>Recently, Thailand has simultaneously experienced low inflation rate and aging population. Is there a linkage between these two variables as questioned by policy makers and researchers in many countries?&nbsp; The lower working age population and a higher aged people ratio could theoretically change economic agent’s behaviors such as consumption, saving, and others affecting to the macro-level economy and inflation pressures. This paper, hence, tries to find the impact of demographic change on inflation in Thailand from an empirical view. Based on the overall CPI basket and its subcomponents over the sample period 2001 to 2016, the results show that, in general, a declining Thai working age population has a significant deflationary impact. In contrast, in the case of housing and furnishing inflation, the results suggest an inflationary pressure. The findings support the view that demographics are one of the structural factors that alter the economic contexts and have implications on macroeconomic policies in Thailand.&nbsp;</p> 2019-12-23T00:00:00+07:00 Copyright (c) 2019 https://so01.tci-thaijo.org/index.php/AEJ/article/view/207847 Government Size and Economic Growth: A Panel Data Study Comparing OECD and Non-OECD Countries 2020-02-28T12:55:10+07:00 Sheraz Rajput sheeraz.mustafa@iba-suk.edu.pk Aziz Tariq tariq.aziz@iba-suk.edu.pk <p>This study examines the non-linear relationship between government size and economic growth following Armey (1995). Generalized Method of Moments (GMM) estimation technique is applied to panel data consisting of 89 countries from 1990 to 2018. The results show substantial evidence for Armey curve across non-OECD countries. The findings suggest that a rise in government size initially enhances economic growth but later government size reduces economic growth once the government size crosses a certain threshold. However, the findings relating to the OECD countries do not support the presence of Armey curve.&nbsp;&nbsp;</p> 2019-12-23T00:00:00+07:00 Copyright (c) 2020 Applied Economics Journal https://so01.tci-thaijo.org/index.php/AEJ/article/view/231912 Hedging Effectiveness on the Thailand Futures Exchange Market 2020-03-03T19:33:52+07:00 Polwat Lerskullawat fbuspwl@ku.ac.th <p>This study examines hedge strategies through derivative instruments in an emerging market, with evidence from Thailand during the period 2011 to 2018. Focusing on a series of futures contracts on the Thailand Futures Exchange market (TFEX), namely SET50 futures, gold futures and interest rate futures, the study methods employed in both static and time-varying models: OLS, VECM, time-varying OLS, EGARCH, BEKK and DCC. In general, the results show that SET50 futures display the best hedge ratio and hedge effectiveness in Thailand, followed by gold futures and interest rate futures. Therefore, investors in Thailand will benefit from investing in SET50 futures only if their business or hedge assets relate to the composite index, particularly the SET50 index. Otherwise, the other types of derivatives or financial instruments may need to be considered more carefully for investment strategies. However, the hedge effectiveness of gold futures appears to be sensitive when the time-varying models are applied differently. Furthermore, these results are consistent with the previous literature and shed more light on the study of derivative products in Thailand.</p> 2019-12-23T00:00:00+07:00 Copyright (c) 2019 https://so01.tci-thaijo.org/index.php/AEJ/article/view/222035 Sectoral Business Cycle Asymmetries and Regime Shifts: Evidence from Turkey 2020-02-28T13:03:42+07:00 Dicle Ozdemir dicleozdemir@mu.edu.tr <p>The aim of this paper is to fit Markov regime switching behavior models to the sectoral GDP growth rates in Turkey for the period 1998: Q1 to 2019: Q2. The findings support the existence of two regimes as low-growth and high-growth for all three sectors. The mean growth rate of the total GDP is closer to the mean growth rate of the industry sector than to the mean growth rate of the agricultural and services sectors. Moreover, the regime volatilities are higher in the low-growth regime for the industry and services sectors and vice versa for the agricultural sector and the total GDP. The results also show that the high-growth regime periods are longer than the low-growth regime periods. Finally, it is observed that there are more frequent fluctuations in the agricultural sector than the other sectors’ cycles based on the smoothed probabilities for low-growth regime. Moreover, since 2016 till now, the services sector’s regime switching behavior is associated with the low-growth regimes of GDP, which indicates that <em>Turkey's</em> &nbsp;largely free-market economy is driven by the <em>services sector.</em> The findings also show that Markov <em>switching model used in this study provides an advantage</em> to model the nonlinearities in GDP fluctuations which assume different behaviors in different regime periods.</p> 2019-12-23T00:00:00+07:00 Copyright (c) 2019 Applied Economics Journal