Browsing by Author "Jahan, Masud"

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    AN ANALYSIS OF ALTERNATIVE INDUSTRIALIZATION STRATEGIES FOR DEVELOPING ECONOMIES
    (R&D Wing, MIST, 2009-12) Jahan, Masud; Rashid, Samiur
    Industrialization is the process of social and economic change whereby a human group is transformed from a preindustrial society into an industrial one. Import Substitution Industrialization (ISI) is an industrialization policy based on the premise that a country should attempt to reduce its foreign dependency through the local production of industrialized products. Because of limitations of ISI, the concept of Export-led industrialization was supported by economists. Export-led industrialization (ELI) is an industrialization policy aiming to speed-up the industrialization process of a country through exporting goods for which the nation has a comparative advantage. Export-oriented industrialization is often contrasted with import substitution industrialization. The objective of this paper is to critically appraise the role of Easy ISI strategy in economic development.
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    DERIVATIVES FOR CAPITAL MARKET EFFICIENCY
    (R&D Wing, MIST, 2010-02) Jahan, Masud; Hossain, Md. Moulude; Jaman, Md.
    Derivative contracts transfer risk, especially price risk, to those who are able and willing to bear it. How they transfer risk is complicated and frequently misinterpreted. Derivatives have also been associated with some spectacular financial failures and with dubious financial reporting. This paper will discuss the role of derivative products in capital flows, especially in providing a means of both reducing and enhancing market risks associated with given net flows. It will emphasize how derivatives can be used to evade risk-control or prudential regulation, circumvent capital controls, drive the dynamics of currency instabilities, and obscure true risk positions and thereby undermine the usefulness of balance of payments capital account categories. Financial derivatives (credit default swaps, options, etc) are screwing over the economy because too much money is being poured into the invisible (derivatives) market. This probably undervalues the prices of the underlying goods/assets/etc in the real market (instead, investors should just simply buy the stocks, etc and the increased demand would drive up the stock price and it would make everyone happy). All these derivatives may contribute to risk… it may encourage people to take on unreasonable risk and could lead to drastic market volatility.