Institutions and Economies <div align="justify"> <p>Institutions and Economies is a peer reviewed journal published by the Faculty of Business and Economics (formerly Faculty of Economics and Administration), University of Malaya. The journal is published four times a year, in January, April, July and October. The journal publishes research articles and book reviews. Only original articles that are not under consideration by other publishers are welcome. Special issues are also welcome but interested special issue editors must submit a proposal to the Editor-In-Chief for consideration. The journal is indexed in SCOPUS, IDEAS, MYCite, ECONPapers, ASEAN Citation Index (ACI), EBSCO and Asian Digital Library. Institutions and Economies is a recipient of the CREAM Award 2016 by the Ministry of Higher Education Malaysia.</p> <p>Print ISSN: 2232 - 1640<br />E - ISSN: 2232 - 1349 </p> <p> </p> <p><strong>Peer Review Statement </strong></p> <p><strong><em>All research articles in the journal have undergone rigorous peer review. The process consists of an initial screening by the</em> <em>Editor-In-Chief, Deputy Editor and</em><em> Associate Editors, followed by double-blind refereeing: two reviewers for articles. Articles in special issues go through double-blind refereeing and one internal review by the Editorial Board. </em></strong></p> <p><strong><br />IMPORTANT ANNOUNCEMENT</strong></p> <p>Beginning <strong>1st March 2021</strong>, <strong>there will be no submission fee for this journal. </strong> There will be a <strong>publication fee of USD100/- per article</strong> to partially cover the expenses of copy editing of accepted manuscripts. <strong>Payment of the publication fee should only be made after acceptance of a manuscript.</strong> The detailed information of the payment process can be seen <a href="">here</a>. Payment of the publication fee can be done at this <a href="">website</a>.</p> <p> </p> </div> <div class="SnapLinksContainer" style="margin-left: 0px; margin-top: 0px; display: none;"> <div class="SL_SelectionRect"> <div class="SL_SelectionLabel" style="right: 2px; bottom: 2px;">0 Links</div> </div> <!-- Used for easily cloning the properly namespaced rect --></div> <div class="SnapLinksContainer" style="margin-left: 0px; margin-top: 0px; display: none;"> <div class="SL_SelectionRect"> </div> <!-- Used for easily cloning the properly namespaced rect --></div> en-US <p>Submission of a manuscript implies: that the work described is original, has not been published before (except in the form of an abstract or as part of a published lecture, review, or thesis); that is not under consideration for publication elsewhere; that its publication has been approved by all co-authors, if any, as well as tacitly or explicitly by the responsible authorities at the institution where the work was carried out. Transfer of copyright to the University of Malaya becomes effective if and when the article is accepted for publication. The copyright covers the exclusive right to reproduce and distribute the article, including reprints, translations, photographic reproductions, microform, electronic form (offline and online) or other reproductions of similar nature.<br />An author may self-archive the English language version of his/her article on his/her own website and his/her institutions repository; however he/she may not use the publishers PDF version which is posted on Furthermore, the author may only post his/her version, provided acknowledgement is given to the original source of publication and a link must be accompanied by the following text: The original publication is available at</p> <p>All articles published in this journal are protected by copyright, which covers the exclusive rights to reproduce and redistribute the article (e.g. as offprint), as well as all translation rights. No material published in this journal may be reproduced photographically or stored on microfilm, in electronic database, video disks, etc., without first obtaining written permission from the publishers. The use of general descriptive names, trade names, trademarks, etc., in this publication, even if not specifically identified, does not imply that these names are not protected by the relevant laws and regulations.</p> <p>The copyright owners consent does not include copying for general distribution, promotion, new works, or resale. In these cases, specific written permission must first be obtained from the publishers.</p> (Institutions and Economies) (Institutions and Economies) Fri, 01 Apr 2022 20:16:37 +0800 OJS 60 The Role of Corruption in Natural Resource-Financial Development Nexus: Evidence from MENA Region <p>This paper contributes to the literature on resource curse by investigating the impact of natural resource abundance on financial development while accounting for the interactive effect of natural resources and corruption in 11 resource-rich MENA countries over the period of 1987 to 2015. Using pooled mean group (PMG) estimation technique, our results show that abundance of natural resource weakens the pace of financial development in countries with high level of corruption. Thus, resource rich countries in the MENA region will boost the level of financial development through minimising the degree of corruption in their financial sectors. Therefore, policymakers should control the corruption, which plays a significant role to mitigate the adverse effect of natural resources on financial development. This is through building strong institutions, which help to check corruption, enhancing rule of law and protecting investors. Our results are consistent and robust to alternative measures of natural resource abundance and financial development.</p> Daouia Chebab, Nur Syazwani Mazlan, Mustafa Raza Rabbani, Lee Chin, Aishatu Ibrahim Ogiri Copyright (c) 2022 Fri, 01 Apr 2022 00:00:00 +0800 Effects of Trade Facilitation on Trade Costs in Developed and Developing Countries: PPML Analysis <p>Trade facilitation reduces trade costs and eases the movement of goods and services. Studies have shown that trade flows increased by improving the trade facilitation process and reducing trade costs. The study aims to estimate the effects of trade facilitation enhancement on trade costs in 111 developed and developing countries over the 2008 to 2014 period using the Poisson-Pseudo Maximum Likelihood (PPML) estimator. The findings show that trade facilitation components such as border administration, business environment and transport and communication infrastructure reduce trade costs. This trade facilitation should have helped alleviate the effects of the financial recession and eased world trade recovery. On the other hand, the study finds that additional market access increases trade costs. The most important finding is that the effectiveness of trade facilitation is higher when more countries engage in trade and when those countries are together participating in trade facilitation.</p> Imad Kareem Alaamshani, Hanny Zurina Hamzah, Shivee Ranjanee Kaliappan, Normaz Wana Ismail Copyright (c) 2022 Fri, 01 Apr 2022 00:00:00 +0800 Microfinance and Women’s Empowerment in Myanmar <p>Like in many other developing countries, microfinance programmes in Myanmar have become an avenue to reduce poverty. This research examines whether microfinance in Myanmar has empowered female clients compared to non-microfinance clients, in terms of: (i) general decision-making (children’s education, family planning, children’s marriage, health care); and (ii) financial decision-making (income utilisation, loan usage, savings, investment). Primary data was collected using a questionnaire survey to achieve the research objectives. The sample of the survey consists of two groups of women living in the Ayeyarwady region, Myanmar: (i) Beneficiaries of microfinance programmes, and (ii) non-beneficiaries of any microfinance institutions. Female clients either started a new business or expanded/diversified an existing business using microfinance, which helped to increase income and savings. Overall, 89.8% of microfinance clients have gained significant empowerment (in making general and financial decisions combined). The discriminant analysis based on four indicators - children’s education, children’s marriage, savings, and investment - shows that the decision-making power of microfinance clients has improved compared to non-clients. The government should actively promote a microfinance ecosystem through robust microfinance institutional frameworks including, microfinance institutions, intermediaries, and local government agencies. Financial literacy awareness campaigns should be organised frequently to promote wider women’s participation in microfinance programmes.</p> Angathevar Baskaran, Thiri Dong, Sonia Kumari Selvarajan Copyright (c) 2022 Fri, 01 Apr 2022 00:00:00 +0800 Influence of Fiscal Decentralisation and Ethnic Diversity on Educational Outcomes – Evidence from Indonesia <p>The main objective of this paper is to clarify the influence of fiscal decentralisation and ethnic diversity on Indonesia’s educational outcomes using Indonesian provincial-level data from 2001 to 2014 and applying dynamic panel data estimation. This paper takes into account that ethnic diversity mediates the relationship between fiscal decentralisation and educational outcomes. The result confirms that the inclusion of the ethnic diversity variable lessens the positive influence of fiscal decentralisation on educational outcomes. The presence of a diversity debit hypothesis in Indonesia overshadowed the local government’s effort in improving regional educational outcomes through decentralisation. This paper proposes a set of policy recommendations based on empirical results to assist the local government in controlling the adverse effect of ethnic diversity on regional educational outcomes.</p> Matondang Elsa Siburian Copyright (c) 2022 Fri, 01 Apr 2022 00:00:00 +0800 Does Tax Avoidance, Deferred Tax Expenses and Deferred Tax Liabilities Affect Real Earnings Management? Evidence from Indonesia <p>The study analyses the effect of tax avoidance, deferred tax expenses and deferred tax liabilities on real earnings management. The samples consist of 152 manufacturing companies listed on the Indonesian Stock Exchange (IDX). The study examines the financial statements from 2011 to 2019, ending up with 1,368 observations. The empirical results of this study are as follows. First, tax avoidance affects positively the abnormal discretionary operating cash flows and the abnormal discretionary expenses. However, tax avoidance does not affect the abnormal discretionary production costs. Second, deferred tax expenses affect real earnings management positively, either through abnormal discretionary operating cash flows, abnormal discretionary expenses, or abnormal discretionary production costs. Third, deferred tax liabilities affect real earnings management positively, either by using abnormal discretionary operating cash flows, abnormal discretionary expenses, or abnormal discretionary production costs. The findings of this study may be of interest to regulators and tax authorities, as they highlight how to increase the actual amount of tax payments by reducing the occurrence of real earnings management activities. Regulators need to consider tax audits on companies that have suffered losses but are still operating.</p> Nera Marinda Machdar Copyright (c) 2022 Fri, 01 Apr 2022 00:00:00 +0800 A Research Agenda for Financial Inclusion and Microfinance Sonia Kumari Selvarajan Copyright (c) 2022 Fri, 01 Apr 2022 00:00:00 +0800 Where Women Matters Sharifah Muhairah Shahabudin Copyright (c) 2022 Fri, 01 Apr 2022 00:00:00 +0800