Tantatape Brahmasrene - Purdue University Northwest (original) (raw)

Tantatape Brahmasrene

Tantatape Brahmasrene is Professor of Finance and International Business in the College of Business at Purdue University Northwest. Dr. Brahmasrene is a 2001 J. William Fulbright Senior Scholar, a Fulbright Senior Specialist in Turkmenistan (2015), Kazakhstan (2007) and Thailand (2003). He holds a M.S. from Indiana State University, and a M.A. and Ph.D. from the University of Cincinnati. He also earned professional designations: Certified Financial Planner (1991) and Chartered Financial Consultant (1992).

He served as a member of doctoral dissertation committees at Eindhoven University of Technology in the Netherlands, American University, Ramkhamhaeng University and University of Southern Queensland. Dr. Brahmasrene was a guest editor of Managerial Finance in 2003 & 2004, member of several journal editorial boards and was the author of EconTrends for 24 years.

During the past decade, he has presented numerous papers at conferences and published in refereed journals such as Tourism Management, Energy Economics, Global Economic Review, International Journal of Economics and Finance, International Journal of Economics and Business Research, Journal of the Asia Pacific Economy, Journal of Transnational Management, Asian-African Journal of Economics and Econometric, International Journal of Business and Economics Perspectives, International Journal of Entrepreneurship, Journal of International Business Research, Southwestern Economic Review, Journal of Economics and Economic Education Research, Managerial Finance and Journal of Contemporary Business Issues.

Dr. Brahmasrene has taught various courses in finance, international business and economics. His co-authored paper (“Investigating the influence of tourism on economic growth and carbon emissions: Evidence from panel analysis of the European Union”, Tourism Management, 2013) has been selected as a winning paper in the prestigious Emerald Citations of Excellence for 2016. He was awarded the 2013 Best Paper Award from the BAI International Conference for Business & Information, the 2009 Best Paper Award from the International Management Development Association, a 2008 Distinguished Research Award from the Academy of Entrepreneurship, a 2007 Research Award from the Academy of Economics and Economic Education, the 2004 George C. Roberts Outstanding Paper Award, a 2003 Research Award from Academy for Studies in International Business and a 2001 Distinguished Research Award from the Allied Academies. Dr. Brahmasrene was the recipient of the 2002 Academy of Educational Leadership Outstanding Educator Award and the Purdue University North Central 1997-1998 Outstanding Teacher Award.

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Papers by Tantatape Brahmasrene

Crude oil prices and exchange rates: Causality, variance decomposition and impulse response

Energy Economics, 2014

Managerial Finance, 2003

This study examines the impact of expectations on the market share mechanism. The dynamic strateg... more This study examines the impact of expectations on the market share mechanism. The dynamic strategic pricing behaviors in the short-run and the long-run are also explored. The exchange rate expectations are incorporated into a switching cost model via the method of exchange rate pass-through on product-specific and country-specific approach. By using the time series techniques, the results of the system estimations prove that the market share mechanisms are weakened by exchange rate expectations in open economies. Furthermore, not only is the degree of exchange rate pass-through higher in the short-run than in the long-run but also many cases of pair-wise rivalry are found. An improved understanding of the effects of exchange rate movements on foreign exporters pricing and pass-through relations from this study may enhance competition in international markets.

Foreign exchange volatility and international pricing

International Journal of Economics and Business Research, 2011

... Jui-Chi Huang is an Assistant Professor of Economics at Pennsylvania State University at Berk... more ... Jui-Chi Huang is an Assistant Professor of Economics at Pennsylvania State University at Berks campus. ... In exchange rate pass-through study with panel data by Mallick and Marquesn (2006), the R2 is in the range of 0.003 and 0.190 while Parsley (2003) found the adjusted R2 ...

International Journal of Economics and Finance, 2010

This paper investigates the impact of hedging activities on U.S. export pricing. A theoretical fr... more This paper investigates the impact of hedging activities on U.S. export pricing. A theoretical framework of export pricing model with a hedging component was derived to test the hypothesis via exchange rate pass-through. The hypothesis is that a firm with a high (low) hedging engagement would have a low (normal) degree of exchange rate pass-through, ceteris paribus. Two measurements of the hedging engagement are the hedging amount and the hedging dummy. The result tested with the hedging amount on pass-through supports the hypothesis and suggests the importance of hedging involvement in preventing any uncertainty from exchange rate fluctuations. In addition, the coefficient estimate of the foreign demand elasticity interacting with one-year-lagged exchange rate is significant at one percent. However, the differential effects of different levels of hedging activities on the size of pass-through with the hedging dummy are inconclusive.

Pricing to pass‐through under volatile exchange rate scenario in the US manufacturing

World Journal of Entrepreneurship, Management and Sustainable Development, 2011

ABSTRACT A plethora of studies suggests the pricing decisions depend on product substitutability,... more ABSTRACT A plethora of studies suggests the pricing decisions depend on product substitutability, costs, market structures, and the magnitude of exchange rate uncertainty in the international setting. Taking a departure from existing literature, this paper examines the average degree of exchange rate pass-through to the prices of export product under low to high exchange rate volatility. A panel data estimation method is performed using the annual US export data to 69 export destinations across 111 four-digit Standard Industrial Classification (SIC) industries. An average zero or insignificant pass-through estimate for all industries in the high exchange-rate-fluctuation sub-sample confirms the hypothesis. In this period of high exchange risk, the possible high hedging engagements disconnect the relationship between exchange rate movements and export pricing.

A Model of Exchange Risk and Exchange Rate Pass-Through

The theoretical model proposed in this study extracts the idea of allowing markup adjustment and ... more The theoretical model proposed in this study extracts the idea of allowing markup adjustment and extends the pass-through framework of the existing literature to explicitly focus on the exporters' risk aversion to their pricing strategies. The trade costs are introduced as a part of producers' total profit function in the pass-through model. They are considered to be one of the causes of world market segmentation and may be the key to solve the international pricing puzzle. The assumption of the risk aversion of export agents ensures that any trade risk including exchange risk would be managed and avoided by some financial and operational instruments such as hedging. The theory derived predicts that the degree of exchange rate pass-through falls as firm's hedging activities increase due to higher exchange volatility, ceteris paribus.

Assessing the dynamic impact of tourism, industrialization, urbanization, and globalization on growth and environment in Southeast Asia

The purpose of this article is to investigate the impact of growth and environment in Southeast A... more The purpose of this article is to investigate the impact of growth and environment in Southeast Asia. Extending existing research, this research builds on variables such as tourism, industrialization, urbanization, globalization, economic growth, and environment in a multivariate format. Cointegration tests and panel regression models are employed in the empirical analysis using panel data of Southeast Asian countries. The research discovers a long-run equilibrium relationship between carbon dioxide emissions, tourism, industrialization, urbanization, globalization, and economic growth. Accordingly, pertaining to short-run analysis, tourism, urbanization, and globalization directly affect economic growth while industrialization is insignificant. Further analysis shows the extent to which these factors impact environment. The results reveal an intriguing paradox that tourism negatively impacts carbon emissions in the region while industrialization and urbanization directly cause carbon emissions. These findings suggest the effectiveness of green or ecotourism in the region and highlight how Southeast Asian countries develop policies to curb carbon emission levels and leverage these attributes for sustainable environment.

More metropolitan areas focus on renewing and improving capital to promote economic development a... more More metropolitan areas focus on renewing and improving capital to promote economic development and to improve standard of living in their areas. This study investigated the relation among job growth, population and income growth as potentially objectives for economic development. The measures of economic performance include average annual employment, population, labor force, per capita income, and earnings per job growth. The intent is to identify and compare the demographic, economic, structural and environmental factors that are strongly associated with each of the measures of performance. Demographic and economic structure appear to play a major role in explaining relative rates of population, labor force, employment and per capita income growth with limited role in explaining growth in average earnings per job growth. The implications of this study are that prudent fiscal management, yet investing in local health and education facilities are wise policy options to promote superior employment and to a lesser extent income growth.

A firm's response to economic volatility is a topic of interest to managers and academics alike. ... more A firm's response to economic volatility is a topic of interest to managers and academics alike. This study examines the relationship between resources for marketing and financial capabilities and performance of firms in recovery from economic crisis in Thailand. The authors researched this timely topic by collecting data from the Thailand market. Marketing capabilities (market orientation & strategic flexibility) and financial capabilities (financial strength & financial diversification) were chosen as independent variables. The results indicated that financial strength and financial diversification, as well as strategic flexibility, had positive influences on firms' performance. However, financial capabilities had greater influences on performance than marketing capabilities. Comparing these two types of capabilities sheds light on the resource allocation decision between the two functional areas when firms operate amid an economic crisis.

Describes the impact of recent changes in US tort law and identifies four interest groups concern... more Describes the impact of recent changes in US tort law and identifies four interest groups concerned: manufacturers, insurance companies, consumers and lawyers. Discusses their relative strengths, motivations and influence on judicial decisions, citing relevant liability cases for product‐ related injuries due to manufacturing defects, design defects and inadequate warnings. Develops a logistic regression model to relate state adoption of strict liability standards to the relative strength of interest groups and applies it to US data. Suggests that the strength of manufacturers and, more particularly, lawyers is significant; and that liberal states are more likely to adopt strict liability for design defects. Calls for further research on the role of the legal profession in legal change.

The study rested on the author's experiences teaching economics and financial management courses ... more The study rested on the author's experiences teaching economics and financial management courses at Westville Correctional Facility in Westville, IN, and at Purdue University North Central for more than 10 years. The analysis focused on economics courses due to their use of a cognitive problem-solving approach that can strengthen thinking skills and lead to improved decision making. The research used pretests and posttests with a nationally standardized test. The tests covered 10 content categories in microeconomics and macroeconomics and emphasized skills that went beyond recall and memorization. The study used a table of specifications to ensure congruence between the test and classroom instructions. Results revealed no significant performance differences between inmates and regional campus students. Both groups of students were comparable to the national norm in that they had adequate thinking skills that led to effective decision making in economics. Findings suggested that inmate educational programs can be effective even with complex topics such as economics. Tables and 12 references Main Term(s):

This study investigates the impact of real exchange rates on the trade balances between Thailand ... more This study investigates the impact of real exchange rates on the trade balances between Thailand and its major trading partners. Previous empirical evidence gave mixed results of the impact of real exchange rates on trade balances. In this study, Augmented Dicky‐ Fuller and Phillips‐ Perron tests for stationarity followed by the cointegration tests are implemented. All variables in the model are nonstationary but cointegrated. In cointegrating regressions, biases are introduced by simultaneity and serial correlation in the error. The specification that deals with these problems is the non‐ linear specification of Stock and Watson (1989). By using this non‐ linear model as modified by Reinhart (1995), the results show that the impact of real exchange rates (Thai baht/foreign currency) on trade balances is significant in most cases. Therefore, the generalized Marshall‐ Lerner condition seems to hold. Furthermore, the results show that the real exchange rates play a more important role in the determination of the bilateral trade balances than other factors. Since the real exchange rate variable plays a major role in this study, the policy recommendation is to prevent exchange rate misalignment. A policy

Implementation of a job-matching program was deemed necessary because of the emergence of nationw... more Implementation of a job-matching program was deemed necessary because of the emergence of nationwide high unemployment and imperfect information about the labor market. Not only did there exist a large number of job applicants, but also a large number of firms seeking semiskilled workers. To equilibrate the labor on both demand and supply sides, the government established a committee to supervise a job-matching program in thirteen manufacturing categories as specified in the National Plan for Industrial Restructuring. Under this program, the initial task was to survey manufacturing employment. The evidence from that first national survey of manufacturing employment is analyzed in this paper.

This paper adds to the existing findings by examining the relationship between exchange risk and ... more This paper adds to the existing findings by examining the relationship between exchange risk and pass-through under the foreign exchange volatility. The thrust of this case is to investigate the extent of how the foreign exchange volatility affects the degree of pass-through. A panel data estimation method is adopted for the empirical testing. The results support the notion that the foreign exchange volatility mutes, possibly through hedging activities, the impact of exchange rate changes on export pricing regardless of the types of destination market structure.

The notion that more government expenditures can stimulate growth is still controversial. Some re... more The notion that more government expenditures can stimulate growth is still controversial. Some researchers found positive relationship between government expenditures and growth with bi-directional causation, while others indicated that growth caused government spending to expand. The causation between government expenditures and economic growth in Thailand was examined using the Granger causality test. There was no cointegration between government expenditures and economic growth. A unidirectional causality from government expenditures to economic growth existed. However, the causality from economic growth to government expenditures was not observed. Furthermore, estimation results from the ordinary least square confirmed the strong positive impact of government spending on economic growth during the period of investigation.

This study investigates the role of small business development (SBD) in transitional economies of... more This study investigates the role of small business development (SBD) in transitional economies of Commonwealth Independent States (CIS) and makes economic and financial recommendations for international policymakers. A range of current SBD research that examined entrepreneurship from an economic perspective was reviewed. An economic research paradigm was developed to provide a macro view of CIS countries and then it was applied to Kazakhstan in Central Asia. In general, factors that enhance SBD include improving institutional environments, increasing credit availability and promoting competition. Specifically in Kazakhstan, a survey of entrepreneurs and small business owners was conducted to determine how SBD creates markets and how it transforms lives. To enhance and sustain economic stability and reduce reliance on state-owned natural resource industries, CIS should implement alternative development strategies that promote SBD. Selected policy and practical implications are identified which facilitate SBD through initial investment funds that create capital formation and credits.

The improvement of safety programs is of significant importance to the economy of countries that ... more The improvement of safety programs is of significant importance to the economy of countries that move toward a global perspective. The objective of Experience Modification Ratings (EMR) is to encourage employers, through management incentives, to reduce the frequency and severity of work-related injuries. The insurance industry uses EMR to assess premiums. A U.S. national survey was conducted to investigate EMR determinants. EMR and its average (AEMR) are hypothesized to vary inversely with training hours, number of safety audits, the company's annual revenue and the annual cost of safety training per employee. The empirical findings indicated the number of training hours was significant while revenue was highly significant. This paper offers practical and policy implications with respect to these findings.

This study examined crucial factors affecting industrial safety indicators. A survey was conducte... more This study examined crucial factors affecting industrial safety indicators. A survey was conducted to explore factors affecting total recordable incident rates and lost time incident rates. The number of safety audits and the natural log of safety infraction disciplinary action had a negative impact on the natural log of recordable incidents and the lost time incident rates while the number of training hours was an insignificant factor. Thus, the finding regarding training is contradictory to a belief that the number of training hours is an important factor in reducing recordable incident and lost time incident rates. These results should assist companies as they strive to focus on significant factors such as safety audits and disciplinary action in order to improve recordable incident and lost time incident rates, thus improving the safety performance of the organization.