Subjects -> BUSINESS AND ECONOMICS (Total: 3841 journals)
    - ACCOUNTING (145 journals)
    - BANKING AND FINANCE (329 journals)
    - BUSINESS AND ECONOMICS (1411 journals)
    - CONSUMER EDUCATION AND PROTECTION (20 journals)
    - COOPERATIVES (4 journals)
    - ECONOMIC SCIENCES: GENERAL (232 journals)
    - ECONOMIC SYSTEMS, THEORIES AND HISTORY (255 journals)
    - FASHION AND CONSUMER TRENDS (20 journals)
    - HUMAN RESOURCES (103 journals)
    - INSURANCE (26 journals)
    - INTERNATIONAL COMMERCE (146 journals)
    - INTERNATIONAL DEVELOPMENT AND AID (103 journals)
    - INVESTMENTS (22 journals)
    - LABOR AND INDUSTRIAL RELATIONS (66 journals)
    - MACROECONOMICS (17 journals)
    - MANAGEMENT (634 journals)
    - MARKETING AND PURCHASING (116 journals)
    - MICROECONOMICS (23 journals)
    - PRODUCTION OF GOODS AND SERVICES (125 journals)
    - PUBLIC FINANCE, TAXATION (42 journals)
    - TRADE AND INDUSTRIAL DIRECTORIES (2 journals)

BUSINESS AND ECONOMICS (1411 journals)                  1 2 3 4 5 6 7 8 | Last

Showing 1 - 200 of 1566 Journals sorted alphabetically
360 : Revista de Ciencias de la Gestión     Open Access   (Followers: 14)
4OR: A Quarterly Journal of Operations Research     Hybrid Journal   (Followers: 15)
Abacus     Hybrid Journal   (Followers: 22)
Accounting Forum     Hybrid Journal   (Followers: 34)
Acta Amazonica     Open Access   (Followers: 8)
Acta Commercii     Open Access   (Followers: 6)
Acta Marisiensis : Seria Oeconomica     Open Access   (Followers: 2)
Acta Oeconomica     Full-text available via subscription   (Followers: 5)
Acta Scientiarum. Human and Social Sciences     Open Access   (Followers: 12)
Acta Universitatis Danubius. Œconomica     Open Access   (Followers: 5)
Acta Universitatis Lodziensis : Folia Geographica Socio-Oeconomica     Open Access   (Followers: 3)
Acta Universitatis Nicolai Copernici Zarządzanie     Open Access   (Followers: 5)
AD-minister     Open Access   (Followers: 5)
Adam Academy : Journal of Social Sciences / Adam Akademi : Sosyal Bilimler Dergisi     Open Access   (Followers: 6)
AdBispreneur : Jurnal Pemikiran dan Penelitian Administrasi Bisnis dan Kewirausahaan     Open Access   (Followers: 1)
Admisi dan Bisnis     Open Access   (Followers: 1)
Advanced Sustainable Systems     Hybrid Journal   (Followers: 9)
Advances in Developing Human Resources     Hybrid Journal   (Followers: 36)
Advances in Economics and Business     Open Access   (Followers: 27)
Africa Journal of Management     Hybrid Journal   (Followers: 3)
African Affairs     Hybrid Journal   (Followers: 78)
African Business     Full-text available via subscription   (Followers: 6)
African Development Review     Hybrid Journal   (Followers: 46)
African Journal of Business Ethics     Open Access   (Followers: 8)
African Review of Economics and Finance     Open Access   (Followers: 8)
Afro Eurasian Studies     Open Access   (Followers: 2)
Afro-Asian Journal of Finance and Accounting     Hybrid Journal   (Followers: 9)
Afyon Kocatepe Üniversitesi İktisadi ve İdari Bilimler Fakültesi Dergisi     Open Access   (Followers: 4)
Agronomy     Open Access   (Followers: 18)
Akademik Yaklaşımlar Dergisi     Open Access   (Followers: 1)
Akademika : Journal of Southeast Asia Social Sciences and Humanities     Open Access   (Followers: 8)
AL-Qadisiyah Journal For Administrative and Economic sciences     Open Access   (Followers: 3)
Alphanumeric Journal : The Journal of Operations Research, Statistics, Econometrics and Management Information Systems     Open Access   (Followers: 11)
American Economic Journal : Applied Economics     Full-text available via subscription   (Followers: 295)
American Enterprise Institute     Free   (Followers: 3)
American Journal of Business     Hybrid Journal   (Followers: 23)
American Journal of Business and Management     Open Access   (Followers: 73)
American Journal of Business Education     Open Access   (Followers: 16)
American Journal of Economics and Business Administration     Open Access   (Followers: 42)
American Journal of Economics and Sociology     Hybrid Journal   (Followers: 45)
American Journal of Evaluation     Hybrid Journal   (Followers: 18)
American Journal of Finance and Accounting     Hybrid Journal   (Followers: 26)
American Journal of Health Economics     Full-text available via subscription   (Followers: 23)
American Journal of Industrial and Business Management     Open Access   (Followers: 31)
American Journal of Medical Quality     Hybrid Journal   (Followers: 13)
American Law and Economics Review     Hybrid Journal   (Followers: 33)
ANALES de la Universidad Central del Ecuador     Open Access   (Followers: 4)
Ankara University SBF Journal     Open Access   (Followers: 1)
Annales de l'Institut Henri Poincare (C) Non Linear Analysis     Full-text available via subscription   (Followers: 2)
Annals in Social Responsibility     Full-text available via subscription  
Annals of Finance     Hybrid Journal   (Followers: 37)
Annals of Operations Research     Hybrid Journal   (Followers: 12)
Annual Review of Economics     Full-text available via subscription   (Followers: 52)
Anuario Facultad de Ciencias Económicas y Empresariales     Open Access   (Followers: 2)
Applied Developmental Science     Hybrid Journal   (Followers: 4)
Applied Economics     Hybrid Journal   (Followers: 64)
Applied Economics Letters     Hybrid Journal   (Followers: 35)
Applied Economics Quarterly     Full-text available via subscription   (Followers: 13)
Applied Financial Economics     Hybrid Journal   (Followers: 29)
Applied Mathematical Finance     Hybrid Journal   (Followers: 9)
Applied Stochastic Models in Business and Industry     Hybrid Journal   (Followers: 7)
Apuntes Universitarios     Open Access   (Followers: 1)
Arab Economic and Business Journal     Open Access   (Followers: 7)
Archives of Business Research     Open Access   (Followers: 12)
Arena Journal     Full-text available via subscription  
Argomenti. Rivista di economia, cultura e ricerca sociale     Open Access   (Followers: 4)
ASEAN Economic Bulletin     Full-text available via subscription   (Followers: 7)
Asia Pacific Business Review     Hybrid Journal   (Followers: 9)
Asia Pacific Journal of Human Resources     Hybrid Journal   (Followers: 332)
Asia Pacific Journal of Innovation and Entrepreneurship     Open Access   (Followers: 3)
Asia Pacific Viewpoint     Hybrid Journal   (Followers: 5)
Asia-Pacific Journal of Business Administration     Hybrid Journal   (Followers: 6)
Asia-Pacific Journal of Operational Research     Hybrid Journal   (Followers: 3)
Asia-Pacific Journal of Rural Development     Hybrid Journal   (Followers: 2)
Asia-Pacific Management and Business Application     Open Access   (Followers: 3)
Asian Business Review     Open Access   (Followers: 5)
Asian Case Research Journal     Hybrid Journal   (Followers: 1)
Asian Development Review     Open Access   (Followers: 16)
Asian Economic Journal     Hybrid Journal   (Followers: 10)
Asian Economic Papers     Hybrid Journal   (Followers: 8)
Asian Economic Policy Review     Hybrid Journal   (Followers: 7)
Asian Journal of Accounting and Governance     Open Access   (Followers: 5)
Asian Journal of Business Ethics     Hybrid Journal   (Followers: 13)
Asian Journal of Economics, Business and Accounting     Open Access   (Followers: 2)
Asian Journal of Social Sciences and Management Studies     Open Access   (Followers: 9)
Asian Journal of Sustainability and Social Responsibility     Open Access   (Followers: 4)
Asian Journal of Technology Innovation     Hybrid Journal   (Followers: 7)
Asian-pacific Economic Literature     Hybrid Journal   (Followers: 9)
AStA Wirtschafts- und Sozialstatistisches Archiv     Hybrid Journal   (Followers: 5)
ATA Journal of Legal Tax Research     Hybrid Journal   (Followers: 7)
Atlantic Economic Journal     Hybrid Journal   (Followers: 13)
Australasian Journal of Regional Studies, The     Full-text available via subscription   (Followers: 1)
Australian Cottongrower, The     Full-text available via subscription   (Followers: 1)
Australian Economic Papers     Hybrid Journal   (Followers: 9)
Australian Economic Review     Hybrid Journal   (Followers: 4)
Australian Journal of Maritime and Ocean Affairs     Hybrid Journal   (Followers: 9)
Balkan Region Conference on Engineering and Business Education     Open Access   (Followers: 2)
Baltic Journal of Real Estate Economics and Construction Management     Open Access   (Followers: 6)
Banks in Insurance Report     Hybrid Journal   (Followers: 1)
BBR - Brazilian Business Review     Open Access   (Followers: 5)
Benchmarking : An International Journal     Hybrid Journal   (Followers: 9)
Benefit : Jurnal Manajemen dan Bisnis     Open Access   (Followers: 1)
Berkeley Business Law Journal     Free   (Followers: 13)
Beta : Scandinavian Journal of Business Research     Full-text available via subscription  
Bio-based and Applied Economics     Open Access   (Followers: 2)
Biodegradation     Hybrid Journal   (Followers: 2)
Biology Direct     Open Access   (Followers: 10)
BizInfo (Blace) Journal of Economics, Management and Informatics     Open Access   (Followers: 1)
Black Enterprise     Full-text available via subscription  
Board & Administrator for Administrators only     Hybrid Journal  
Boletim Técnico do Senac     Open Access  
Border Crossing : Transnational Working Papers     Open Access   (Followers: 3)
Brazilian Business Review     Open Access  
Briefings in Real Estate Finance     Hybrid Journal   (Followers: 7)
British Journal of Industrial Relations     Hybrid Journal   (Followers: 47)
Brookings Papers on Economic Activity     Open Access   (Followers: 72)
Brookings Trade Forum     Full-text available via subscription   (Followers: 4)
BRQ Business Research Quarterly     Open Access   (Followers: 3)
BU Academic Review     Open Access  
Bulletin of Economic Research     Hybrid Journal   (Followers: 20)
Bulletin of Geography. Socio-economic Series     Open Access   (Followers: 4)
Bulletin of Indonesian Economic Studies     Hybrid Journal   (Followers: 4)
Bulletin of the Dnipropetrovsk University. Series : Management of Innovations     Open Access   (Followers: 1)
Business & Entrepreneurship Journal     Open Access   (Followers: 35)
Business & Information Systems Engineering     Hybrid Journal   (Followers: 6)
Business & Society     Hybrid Journal   (Followers: 15)
Business : Theory and Practice / Verslas : Teorija ir Praktika     Open Access   (Followers: 1)
Business and Economic Research     Open Access   (Followers: 13)
Business and Management Horizons     Open Access   (Followers: 15)
Business and Management Research     Open Access   (Followers: 24)
Business and Management Studies     Open Access   (Followers: 20)
Business and Professional Communication Quarterly     Hybrid Journal   (Followers: 9)
Business and Society Review     Hybrid Journal   (Followers: 6)
Business Economics     Hybrid Journal   (Followers: 17)
Business Ethics Quarterly     Full-text available via subscription   (Followers: 20)
Business Ethics: A European Review     Hybrid Journal   (Followers: 21)
Business Horizons     Hybrid Journal   (Followers: 12)
Business Information Review     Hybrid Journal   (Followers: 17)
Business Management Analysis Journal     Open Access   (Followers: 4)
Business Management and Strategy     Open Access   (Followers: 51)
Business Research     Open Access   (Followers: 4)
Business Review Journal     Open Access   (Followers: 1)
Business Strategy and Development     Hybrid Journal   (Followers: 2)
Business Strategy and the Environment     Hybrid Journal   (Followers: 13)
Business Strategy Review     Hybrid Journal   (Followers: 17)
Business Strategy Series     Hybrid Journal   (Followers: 8)
Business Systems & Economics     Open Access   (Followers: 2)
Business, Economics and Management Research Journal : BEMAREJ     Open Access   (Followers: 7)
Business, Management and Education     Open Access   (Followers: 22)
Business: Theory and Practice     Open Access   (Followers: 1)
Cadernos EBAPE.BR     Open Access   (Followers: 1)
Cambridge Journal of Economics     Hybrid Journal   (Followers: 82)
Cambridge Journal of Regions, Economy and Society     Hybrid Journal   (Followers: 13)
Canadian Journal of Administrative Sciences / Revue Canadienne des Sciences de l Administration     Hybrid Journal   (Followers: 1)
Canadian Journal of Economics/Revue Canadienne d`Economique     Hybrid Journal   (Followers: 44)
Canadian journal of nonprofit and social economy research     Open Access   (Followers: 3)
Capitalism Nature Socialism     Hybrid Journal   (Followers: 28)
Case Studies in Business and Management     Open Access   (Followers: 15)
CBU International Conference Proceedings     Open Access   (Followers: 2)
Central European Business Review     Open Access   (Followers: 2)
Central European Journal of Operations Research     Hybrid Journal   (Followers: 5)
Central European Journal of Public Policy     Open Access   (Followers: 3)
CESifo Economic Studies     Hybrid Journal   (Followers: 24)
Chain Reaction     Full-text available via subscription  
Challenge     Full-text available via subscription   (Followers: 6)
Chandrakasem Rajabhat University Journal of Graduate School     Open Access  
China & World Economy     Hybrid Journal   (Followers: 21)
China : An International Journal     Full-text available via subscription   (Followers: 22)
China Economic Journal : The Official Journal of the China Center for Economic Research (CCER) at Peking University     Hybrid Journal   (Followers: 17)
China Economic Review     Hybrid Journal   (Followers: 17)
China Finance Review International     Hybrid Journal   (Followers: 7)
China perspectives     Open Access   (Followers: 15)
Chinese Economy     Full-text available via subscription   (Followers: 4)
Chinese Journal of Population, Resources and Environment     Open Access  
Chinese Journal of Social Science and Management     Open Access  
Christian University of Thailand Journal     Open Access  
Chulalongkorn Business Review     Open Access  
Ciência & Saúde Coletiva     Open Access   (Followers: 2)
Ciencia, Economía y Negocios     Open Access   (Followers: 1)
Circular Economy and Sustainability     Hybrid Journal   (Followers: 4)
Cleaner and Responsible Consumption     Open Access  
Cleaner Logistics and Supply Chain     Open Access  
Climate and Energy     Full-text available via subscription   (Followers: 7)
CLIO América     Open Access   (Followers: 2)
Cliometrica     Hybrid Journal   (Followers: 5)
Colombo Business Journal     Open Access  
Community Development Journal     Hybrid Journal   (Followers: 31)
Compendium : Cuadernos de Economía y Administración     Open Access   (Followers: 2)
Compensation & Benefits Review     Hybrid Journal   (Followers: 8)
Competition & Change     Hybrid Journal   (Followers: 12)
Competitive Intelligence Review     Hybrid Journal   (Followers: 3)
Competitiveness Review : An International Business Journal incorporating Journal of Global Competitiveness     Hybrid Journal   (Followers: 5)
Computational Economics     Hybrid Journal   (Followers: 11)
Computational Mathematics and Modeling     Hybrid Journal   (Followers: 9)
Computer Law & Security Review     Hybrid Journal   (Followers: 26)
Computers & Operations Research     Hybrid Journal   (Followers: 15)
Consilience : The Journal of Sustainable Development     Open Access   (Followers: 3)
Construction Innovation: Information, Process, Management     Hybrid Journal   (Followers: 17)
Consumer Behavior Studies Journal     Open Access   (Followers: 1)
Consumer Psychology Review     Hybrid Journal   (Followers: 2)

        1 2 3 4 5 6 7 8 | Last

Similar Journals
Journal Cover
Business & Society
Number of Followers: 15  
 
Hybrid Journal Hybrid journal   * Containing 4 Open Access Open Access article(s) in this issue *
ISSN (Print) 0007-6503 - ISSN (Online) 1552-4205
Published by Sage Publications Homepage  [1164 journals]
  • Does intellectual property rights protection affect UK and US outward FDI
           and earnings from FDI' A sectoral analysis

    • Free pre-print version: Loading...

      Authors: Glauco De Vita , Constantinos Alexiou , Emmanouil Trachanas , Yun Luo
      Abstract: Despite decades of research, the relationship between intellectual property rights (IPRs) and foreign direct investment (FDI) remains ambiguous. Using a recently developed patent enforcement index (along with a broader IPR index) and a large sectoral country-to-country FDI dataset, the authors revisit the FDI-IPR relationship by testing the impact of IPRs on UK and US outward FDI (OFDI) flows as well as earnings from outward FDI (EOFDI). The authors use disaggregated data for up to 9 distinct sectors of economic activity from both the US and UK for OFDI flows and EOFDI, for a panel of up to 42 developed and developing countries over sample periods from 1998 to 2015. The authors employ a panel fixed effects (FE) approach that allows exploiting the longitudinal properties of the data using Driscoll and Kraay's (1998) nonparametric covariance matrix estimator. The authors do not find any consistent evidence in support of the hypothesis that countries' strength of IPR protection or enforcement affects inward FDI, or that sector of investment matters. The results prove robust to sensitivity checks that include an alternative broader measure of IPR strength, analyses across sub-samples disaggregated according to the strength of countries' IPRs as well as developing vs developed economies and an extended specification accounting for dynamic effects of the response of FDI to both previous investment levels and IPR (patent) protection. The authors make use of the largest most granular sectoral country-to-country FDI dataset employed to date in the analysis of the FDI-IPR nexus with disaggregated data for OFDI and EOFDI across up to 9 distinct sectors of economic activity from both the US and UK The authors employ a more sophisticated measure of IPR strength, the patent index proposed by Papageorgiadis et al. (2014), which places emphasis on the effectiveness of enforcement practices as perceived by managers, together with the overall administrative effectiveness and efficiency of the national patent system.
      Citation: Journal of Economic Studies
      PubDate: 2021-11-26
      DOI: 10.1108/JES-09-2021-0462
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2021)
       
  • Do consumer survey data help improve US vehicle sales forecasts'

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      Authors: Hamid Baghestani
      Abstract: This study is concerned with evaluating the Federal Reserve forecasts of light motor vehicle sales. The goal is to assess accuracy gains from using consumer vehicle-buying attitudes and expectations about future business conditions derived from the long-running Michigan Surveys of Consumers. Simplicity is a core principle in forecasting, and the literature provides plentiful evidence that combining forecasts from different methods and models reduces out-of-sample forecast errors if the methods and models are valid. As such, the authors construct a simple vector autoregressive (VAR) model that incorporates consumer vehicle-buying attitudes and expectations about future business conditions. Comparable forecasts of vehicle sales from this model are then combined with the Federal Reserve forecasts to assess accuracy gains. The findings for 1994–2016 indicate that the Federal Reserve and VAR forecasts contain distinct and useful predictive information, and the combination of the two forecasts shows reductions in forecast errors that are more significant at longer horizons. The authors thus conclude that there are accuracy gains from using consumer survey responses. This is the first study that is concerned with evaluating the Federal Reserve forecasts of vehicle sales and examines whether there are accuracy gains from using consumer vehicle-buying attitudes and expectations.
      Citation: Journal of Economic Studies
      PubDate: 2021-11-24
      DOI: 10.1108/JES-07-2021-0328
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2021)
       
  • Rent index forecasting through neural networks

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      Authors: Xiaojie Xu , Yun Zhang
      Abstract: Chinese housing market has been growing fast during the past decade, and price-related forecasting has turned to be an important issue to various market participants, including the people, investors and policy makers. Here, the authors approach this issue by researching neural networks for rent index forecasting from 10 major cities for March 2012 to May 2020. The authors aim at building simple and accurate neural networks to contribute to pure technical forecasting of the Chinese rental housing market. To facilitate the analysis, the authors examine different model settings over the algorithm, delay, hidden neuron and data spitting ratio. The authors reach a rather simple neural network with six delays and two hidden neurons, which leads to stable performance of 1.4% average relative root mean square error across the ten cities for the training, validation and testing phases. The results might be used on a standalone basis or combined with fundamental forecasting to form perspectives of rent price trends and conduct policy analysis.
      Citation: Journal of Economic Studies
      PubDate: 2021-11-15
      DOI: 10.1108/JES-06-2021-0316
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2021)
       
  • The effects of COVID-19 on trade, production, environmental quality and
           its implications for green economy

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      Authors: Dinkneh Gebre Borojo , Jiang Yushi , Miao Miao
      Abstract: This study examines the effects of COVID-19 on trade, production and environmental quality and provides policy implications on green recovery. The two-step Heckman method is applied to estimate the structural gravity specification of trade. Besides, the two-step system GMM model is used to estimate the effects of COVID-19 on production and environmental quality. Additionally, descriptive analysis and literature review have been used. The findings disclose that COVID-19 adversely affected the trade performance of the countries. The results further imply that the regional trade agreements (RTAs) can play a key mediating role in the post-COVID-19 trade recovery. Besides, the impact of COVID-19 on the output is substantially negative. However, the effect of COVID-19 on environmental quality is significantly positive. It is the first study of its kind to examine the effects of COVID-19 on trade, production and CO2 emissions covering panel countries. Second, it provides a detailed analysis of firms planning to engage in the export sector. Moreover, it offers policy suggestions to consider environmental quality and green recovery. Besides, it examines the mediating role of RTAs in the relationship between trade and the pandemic.
      Citation: Journal of Economic Studies
      PubDate: 2021-11-11
      DOI: 10.1108/JES-06-2021-0307
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2021)
       
  • Labor supply responses to income tax free and bracket expansions

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      Authors: Panayiota Lyssiotou , Elena Savva
      Abstract: An important concern of economic policy analysis is how income taxes affect labor supply since this is crucial in assessing the efficiency costs of taxation and designing labor income taxation. The focus in the literature has been mostly to study the responses of high earners and women. The authors contribute to this literature by focusing more on how middle earners respond to financial incentives and whether the responses are different between men and women. The authors exploit substantial expansions in the level of individual income exempt from taxation and taxed at a lower marginal tax rate while the schedule of marginal tax rates remained the same. The authors adopt an empirical framework that is similar to Bosch and van der Klaauw (2012) and condition on the effects of other factors, such as inflows of foreign workers that may have affected the wages, participation and working hours of native males and females. The authors also conduct various sensitivity analyses to examine the robustness of the estimates. The authors find robust evidence that the tax reforms increased the wages of medium and high educated married males and females significantly. They also had a positive impact on work participation that was more substantial for married women, especially the medium educated. The authors estimate significant positive own wage labor supply elasticities that are small and about the same for men and women when the authors condition on the labor outcome effects of inflows of EU and non-EU foreign workers, which changed the skill distribution of the economy and had a more significant impact on female labor outcomes. Smaller wage labor supply elasticities indicate lower disincentive effects and deadweight losses from the imposition of taxes and have implications on the design of optimal taxation of men and women. Previous investigations of the labor supply responses of both men and women to a given policy change have been identified mostly by exploiting changes in joint income taxation and marginal tax rates. The authors exploit substantial expansions in the level of individual income exempt from taxation and taxed at a lower marginal tax rate while the schedule of marginal tax rates remained the same. The income effects of these reforms could be limited since the reduced marginal tax rates apply to only part of the income.
      Citation: Journal of Economic Studies
      PubDate: 2021-11-02
      DOI: 10.1108/JES-03-2021-0128
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2021)
       
  • Corn trade simulations of China: reduction in tariffs versus expansion in
           tariff-rate quotas

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      Authors: Kai Liu , Masato Yamazaki , Atsushi Koike , Yueying Mu
      Abstract: Corn, which has the highest domestic production, planting area and consumption, is the top cereal in relation to demand and supply in China. However, the comparative advantage of China in corn has continuously deteriorated in recent years and based on the recent situation and possible supply and demand trends, it is widely accepted that a corn self-sufficiency rate of 95% is difficult to achieve. Under current import-restriction policies, corn may stand at the crossroads of reforms to solve its predicted insufficient supply. In this study, the authors analyse the necessity of relaxing trade restrictions on corn in China and explore the effects of trade restrictions by reducing tariffs and expanding tariff-rate quotas on corn and related industries and the welfare change caused by possible relaxations. The authors construct a computable general equilibrium (CGE) model and design nine scenarios for the analysis. The results show that relaxations of import restrictions are probable methods to meet the aim of sufficient corn supply during shortages. They are simulated to reduce corn's domestic production and price, increase import and import prices and lead to a decline in self-sufficiency but benefit the production of corn-related industries of corn. The results also imply that expanding the quota is a better method for releasing trade restrictions in China. The comparative advantage of China in corn deteriorated with an increase in prices. Based on the current situation and possible trends of supply and demand, the referenced goal of achieving 95% corn self-sufficiency appears difficult, implying that reliance on imports is probably imminent and vital. This study provides simulation results in future scenarios and offers policy implications for China's corn trade policies.
      Citation: Journal of Economic Studies
      PubDate: 2021-11-02
      DOI: 10.1108/JES-08-2021-0380
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2021)
       
  • A cross-country analysis of the relationship between human capital and
           foreign direct investment

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      Authors: Madhvi Sethi , Saina Baby , Aarti Mehta Sharma
      Abstract: The Zhang–Markusen (Z-M) inverse U-shape theory uses education as a human capital variable to investigate the impact of educational attainment on foreign direct investment (FDI) inflows to a country. The objective of this research is to empirically test this theory in a cross-country framework. Fixed effect panel regression has been used to test the Z-M hypothesis for 172 countries for the period 1990–2015. For the purpose of this study, countries were divided into four groups as per the World Bank classification: Low-income economies, lower middle-income countries, upper middle-income economies and high-income economies. The findings of this study reinforce the proposition that macroeconomic factors are the major determinants of FDI inflows into various countries. The authors find that the size of the market measured by gross domestic product (GDP), the growth potential of the market measured by real GDP growth rate and the availability of infrastructure are the major factors that enhance the attractiveness of a country as an FDI destination. Though the Z-M theory has been empirically tested in cross-country frameworks, no consensus has been reached. Thus, it is interesting to look again at the validity of the Z-M hypothesis using data covering longer and more recent periods. The study includes both macroeconomic and human capital determinants of FDI, so as to arrive at a comprehensive model explaining the FDI flows into various countries.
      Citation: Journal of Economic Studies
      PubDate: 2021-10-26
      DOI: 10.1108/JES-07-2021-0348
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2021)
       
  • Real exchange rate synchronization in the NAFTA region

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      Authors: Hamid Baghestani
      Abstract: The literature mostly investigates the impact of trade and financial integration on business cycle synchronization. The author differs by focusing on the real effective exchange rate as the target variable in the North American Free Trade Agreement (NAFTA) region. In particular, the author investigates synchronization by analyzing the short- and long-run dynamics of the real effective exchange rates of Canada, Mexico and the US for 2008–2019. The author first employs stationarity and cointegration tests to specify and estimate the long-run equilibrium relation between the real effective exchange rates of Canada, Mexico and the US. The author then specifies and estimates an error-correction model for each real effective exchange rate in order to investigate whether the adjustment in eliminating disequilibrium is asymmetric. The results indicate that the real effective exchange rates of Canada, Mexico and the US are cointegrated with only one long-run equilibrium relation. Canada's real effective exchange rate responds symmetrically to eliminate both negative and positive disequilibrium with a similar speed of adjustment. However, the response of Mexico's real effective exchange rate is asymmetric, as it responds to eliminate only positive disequilibrium. The US real effective exchange rate does not respond to disequilibrium, perhaps because it has a large economy with much stronger competition beyond the NAFTA region than both Canada and Mexico. This is the first study that investigates real effective exchange rate synchronization in the NAFTA region.
      Citation: Journal of Economic Studies
      PubDate: 2021-10-21
      DOI: 10.1108/JES-04-2021-0207
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2021)
       
  • Governance thresholds and the human capital–growth nexus

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      Authors: Nicholas Apergis , Ghulam Mustafa , Muhammad Khan
      Abstract: The literature that explores the relationship between human capital and economic growth has produced mixed results. It highlights the puzzle on the correlations between human capital and economic growth. This study contributes to this debate by offering an explanation of the puzzling effects. Using the threshold model proposed by Kremer et al. (2013), the results document that there is a threshold effect in the human capital–growth nexus. The findings illustrate that the relationship between human capital and economic growth is weakly positive up to a certain threshold level of governance; however, the relationship turns out to be positive once the threshold level has been achieved. The mixed evidence on the human capital–growth relationship can be explained through institutional quality differences. The findings recommend that better governance is complementary to contribute to the productive use of human capital in achieving higher economic growth.
      Citation: Journal of Economic Studies
      PubDate: 2021-10-20
      DOI: 10.1108/JES-03-2021-0150
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2021)
       
  • An empirical analysis of human trafficking in an era of globalization

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      Authors: Yselle Flora Kuete Malah , Simplice Asongu
      Abstract: The paper explores the dark side of economic openness by examining empirically the nexus between the globalization process and human trafficking. Specifically, it is about showing in a global perspective how the growing process of free movement of people, goods, capital, services and information technology make the globe a connected web of activity for the sale and exploitation of human beings. After discussing some transmission channels through which globalization could increase this practice based on the lessons from the literature, an empirical analysis is done by employing ordinary least squares (OLS) and Probit regressions on a cross-sectional model covering 130 countries worldwide. Findings, robust to the consideration of the sub-regional specificities and controlling for social, cultural and historical factors, suggest that globalization, particularly financial and cultural, favors human trafficking. In the light of these results, some policy recommendations are discussed. This study complements the extant literature by assessing dynamics of globalization in human trafficking.
      Citation: Journal of Economic Studies
      PubDate: 2021-10-20
      DOI: 10.1108/JES-06-2021-0288
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2021)
       
  • A non-parametric framework for evaluating
           

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      Authors: Navendu Prakash , Shveta Singh , Seema Sharma
      Abstract: Against the backdrop of an Indian banking sector that finds itself entangled in the triple deadlock of increasing competition, technological changes and strict regulatory compliance, the study aims to examine the need for reinforcing stringent corporate and risk governance mechanisms as an instrument for improving efficiency and productivity levels. The authors construct three separate indices, namely, supervisory board index, audit index and risk governance index to measure the governance practices of commercial banks. A slacks-based data envelopment analysis technical efficiency (TE) measure, a variable returns to scale cost efficiency model and Malmquist productivity index are employed to determine TE, cost efficiency and productivity change, respectively. A two-step system-generalized method of moments estimation accounts for the dynamic relationship between governance and efficiency. The authors show that strict audit and risk governance mechanisms are associated with better efficiency and productivity levels. However, consistent with the free-rider hypothesis, large, independent and diverse boards lead to cost inefficiencies. Strict risk governance structures circumvent the negative effects of high regulatory capital and improve efficiency and total factor productivity. However, friendly boards do not perform efficiently in the presence of regulatory capital, implying that incentives arising from maintaining high levels of equity capital make them more susceptible to risk-taking, and board composition is unable to sidestep this behaviour. The paper contributes to the literature that explores the linkages between governance, efficiency and productivity. The inferences hold relevance in the post-COVID world, as regulators try to circumvent the additional stress on the banking system by adopting sound corporate and risk governance mechanisms.
      Citation: Journal of Economic Studies
      PubDate: 2021-10-05
      DOI: 10.1108/JES-06-2021-0273
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2021)
       
  • Social welfare and bank performance: evidence from a stochastic neural
           hybrid MCDM approach

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      Authors: Andrew Maredza , Peter Wanke , Jorge Antunes , Roberto Pimenta , Yong Tan
      Abstract: This paper investigates the endogenous relationships between banking performance and social welfare in Southern African Development Community (SADC) countries. A comprehensive three-stage multi-criteria decision-making (MCDM) approach based on alternative informational assumptions is applied. Results indicate that banking performance is paradoxically associated with stagnant economic activity and higher wealth concentration for the minority. The authors found that SADC banking performance promotes higher Human Development Index (HDI) standards possibly via efficient financial intermediation, dissemination of best managerial practices and other forms of positive spillovers in these countries. This paper contributes to the MCDM literature by simultaneously exploring the key concepts of “utility functions” (using COPRAS) and “distance to ideal solutions” (using TOPSIS) in mapping and explaining the feedback and cause-effect processes between banking performance and social welfare that may exist. Another distinctive aspect is related to the computation of bias-free criteria weights, using a robust SWARA order-rank based on information entropy. Finally, this paper is concerning the endogeneity measurement, using a novel stochastic structural relationship non-linear programme.
      Citation: Journal of Economic Studies
      PubDate: 2021-09-23
      DOI: 10.1108/JES-05-2021-0236
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2021)
       
  • Effect of multilateral trade liberalization on services export
           diversification

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      Authors: Sena Kimm Gnangnon
      Abstract: This study investigates the effect of multilateral trade liberalization on services export diversification with a view to complementing the recently published work on the effect of multilateral trade liberalization on export product diversification. The empirical exercise been performed using a panel dataset of 133 countries over the period 1995–2014. The findings show that multilateral trade liberalization is associated with greater services export diversification in both developed and developing countries alike. This is particularly the case in countries with a high reliance on manufactured goods exports or those that enjoy greater export product diversification. Interestingly, multilateral trade liberalization enhances services export diversification in countries that experience higher foreign direct investment inflows. These findings highlight the importance of multilateral trade liberalization for services export diversification. The study has considered explicitly supply-side factors that could affect services export diversification. This is because the indicator of multilateral trade liberalization is highly correlated with some demand-side factors, such as the world demand for services exports. Therefore, another avenue for future research could involve looking at the demand side factors that could influence services export diversification, and whether the degree of multilateral trade liberalization matters for the influence of these demand factors on services export diversification. The current study through its positive effect on both export product diversification and services export diversification, greater cooperation among World Trade Organization (WTO) Members on trade matters could help revive economic growth, particularly in the current COVID-19 pandemic that has significantly plummeted it. To the best of our knowledge, this is first study that has investigated this issue.
      Citation: Journal of Economic Studies
      PubDate: 2021-09-22
      DOI: 10.1108/JES-01-2021-0057
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2021)
       
  • Model selection in time series analysis: using information criteria as an
           alternative to hypothesis testing

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      Authors: R. Scott Hacker , Abdulnasser Hatemi-J
      Abstract: The issue of model selection in applied research is of vital importance. Since the true model in such research is not known, which model should be used from among various potential ones is an empirical question. There might exist several competitive models. A typical approach to dealing with this is classic hypothesis testing using an arbitrarily chosen significance level based on the underlying assumption that a true null hypothesis exists. In this paper, the authors investigate how successful the traditional hypothesis testing approach is in determining the correct model for different data generating processes using time series data. An alternative approach based on more formal model selection techniques using an information criterion or cross-validation is also investigated. Monte Carlo simulation experiments on various generating processes are used to look at the response surfaces resulting from hypothesis testing and response surfaces resulting from model selection based on minimizing an information criterion or the leave-one-out cross-validation prediction error. The authors find that the minimization of an information criterion can work well for model selection in a time series environment, often performing better than hypothesis-testing strategies. In such an environment, the use of an information criterion can help reduce the number of models for consideration, but the authors recommend the use of other methods also, including hypothesis testing, to determine the appropriateness of a model. This paper provides an alternative approach for selecting the best potential model among many for time series data. It demonstrates how minimizing an information criterion can be useful for model selection in a time-series environment in comparison to some standard hypothesis testing strategies.
      Citation: Journal of Economic Studies
      PubDate: 2021-09-20
      DOI: 10.1108/JES-09-2020-0469
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2021)
       
  • Banking market structure and efficiency: an assessment of the USA and
           Canada

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      Authors: Salah U-Din , David Tripe
      Abstract: The study aims to analyze the changes in banking market structure and their impact on the bank efficiency. This study uses a one-stage stochastic frontier analysis (SFA) to compare the impact of the market structure and the GFC on the economic efficiency of the major banks in both countries. A significant negative impact of the GFC is observed on bank efficiency. Overall, Canadian banks posted better efficiency scores than their American counterparts. Additionally, cost-efficient banks are found to be more resilient to crises and more profit-efficient in the post-GFC period. The authors found that market power had a positive impact on the cost and profit efficiency of banks. Higher levels of equity, market power and concentration helped banks be more cost-efficient. Only large banks are selected for study although it represents the majority stake of both banking sectors. Banking regulators should include more measures to assess the banking market structure and performance. As per the best knowledge of the authors, it is the first study to assess the change in banking market structure and efficiency of the US and Canadian banking sectors in the post-GFC period.
      Citation: Journal of Economic Studies
      PubDate: 2021-09-14
      DOI: 10.1108/JES-03-2021-0157
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2021)
       
  • Natural resources, institutions and the quality-adjusted human capital

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      Authors: Soran Mohtadi
      Abstract: The purpose of this paper is to investigate the resource rents–quality-adjusted human capital nexus and the impact of quality of institutions. For a large data set of 161 countries for the period 1996–2018 (yearly and 4-year periods), fixed effect estimation method is applied to investigate the impact of resource rents on quality-adjusted human capital and the role of quality of institutions on this relationship. The paper found little evidence on the negative, significant and direct impact of total resource rents on quality-adjusted human capital. However, the results show that the negative effect of resource rents can be mediated by the quality of institutions. This result is robust to a long list of controls, different specifications and estimation techniques, as well as several robustness checks. Therefore, institutional quality seems to play a critical role in determining the indirect impact of natural resources on human capital. Moreover, the obtained results demonstrate that this resource adverse effect depends on the type of resource rents; in particular, high dependency on oil rents in developing countries appears to harm human capital. The paper shows that it is not obvious that total resource rents decrease human capital and found that the coefficient is no longer significant in the two-way fixed effects model. However, the analysis has emphasized the crucial role of political institutions in this relationship and has shown that countries with higher quality of institutions make the most of their resource rents transiting to a better human capital environment. This result is found to be robust to a list of controls, different specifications and estimation techniques, as well as several robustness checks. In addition, we demonstrate that not all resources affect human capital in the same way and found that oil rents have a significant negative effect on human capital. This is an important distinction since several countries are blessing from oil rents. From this we conclude that the effect of natural resources on human capital varies across different types of commodities. On the other hand, the interaction between institutions and the sub-categories of resource rents shows that oil rents can increase human capital only in developing countries with higher quality of institutions (above the threshold). This result is also still hold while using alternative measures of political institutions. The results in this paper have important policy implications. In particular, results highlight important heterogeneities in the role resource rents to the economy. As international commodity prices have shown high volatility in recent years, it is important for policy makers to understand the rents. Rents which are the difference between the price of a commodity and the average cost of producing it can have different effects in the economy, including the human capital. It is shown that in countries with low-quality institutions, natural resource rents negatively affect institutional quality, leading to conflicts, corruption and fostering rent-seeking activities. Overall, this reinforces the elite at the power that, obviously, is interested in preserving the status quo. In other words, there is a vicious circle between resource rents and low-quality institutions that impedes institutional change. How to regulate this in the best possible way requires a good understanding of how resource rents are generated and appropriated for different sectors, their different effects and how people react to these rents. The evidence suggests the policy toward better political institutions may help countries to improve social outcomes such as health and education which offer high social returns. The paper is part of the author's PhD research and is an original contribution.
      Citation: Journal of Economic Studies
      PubDate: 2021-09-14
      DOI: 10.1108/JES-11-2020-0536
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2021)
       
  • Nonlinearities and asymmetric adjustment to PPP in an exchange rate model
           with inflation expectations

         This is an Open Access Article Open Access Article

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      Authors: Christina Anderl , Guglielmo Maria Caporale
      Abstract: This paper aims to explain real exchange rate fluctuations by means of a model including both standard fundamentals and two alternative measures of inflation expectations for five inflation targeting countries (the UK, Canada, Australia, New Zealand and Sweden) over the period January 1993–July 2019. Both a benchmark linear autoregressive distributed lag (ARDL) model and a nonlinear autoregressive distributed lag (NARDL) specification are considered. The results suggest that the nonlinear framework is more appropriate to capture the behaviour of real exchange rates given the presence of asymmetries both in the long and short run. In particular, the speed of adjustment towards the purchasing power parity (PPP) implied long-run equilibrium is three times faster in a nonlinear framework, which provides much stronger evidence in support of PPP. Moreover, inflation expectations play an important role, with survey-based ones having a more sizable effect than market-based ones. The focus on linearities and the estimation of a NARDL model, which is shown to outperform the linear ARDL model both within sample and out of sample, is an important contribution to the existing literature which has rarely applied this type of framework; the choice of an appropriate econometric method also makes the policy implications of the analysis more reliable; in particular, monetary authorities should aim to achieve a high degree of credibility to manage them and thus currency fluctuations effectively; the inflation targeting framework might be especially appropriate for this purpose.
      Citation: Journal of Economic Studies
      PubDate: 2021-08-10
      DOI: 10.1108/JES-02-2021-0109
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2021)
       
  • Testing the convergence and the divergence in five Asian countries: from a
           GMM model to a new Machine Learning algorithm

         This is an Open Access Article Open Access Article

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      Authors: Cosimo Magazzino , Marco Mele , Nicolas Schneider
      Abstract: The purpose of this paper is to empirically test the economic convergence that operate between five selected Asian countries (namely Thailand, Singapore, Malaysia, the Philippines and Indonesia). In particular, it seeks to investigate how increased economic integration has impacted the inter-country income levels among the five founding members of ASEAN. A new Machine Learning (ML) approach is applied along with a panel data analysis (GMM), and the application of KOF Globalization Index. The Generalized Method of Moments (GMM) results highlight that the endogenous growth theory seems to be supported for the selected Asian countries, indicating evidence of diverging forces resulting from unequal growth and polarization dynamics. Overcoming the technical issues raised by the econometric approach, the new ML algorithm brings contrasted but interesting results. Using the KOF Globalization Index, the authors confirm how the last phase of globalization set the conditions for an economic convergence among sample members. Using the KOF Globalization Index, the authors confirm how the last phase of globalization set the conditions for an economic convergence among sample members. As a matter of fact, the new LSTM algorithm has provided consistent evidence supporting the existence of converging forces. In fact, the results highlighted the effectiveness of the experiments and the algorithm we chose. The high predictability of the authors’ model and the absence of self-alignment in the values showed a convergence be-tween the economies.
      Citation: Journal of Economic Studies
      PubDate: 2021-08-09
      DOI: 10.1108/JES-01-2021-0027
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2021)
       
  • Nexus between oil price uncertainty and corporate social responsibility:
           evidence from US firms

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      Authors: Guenichi Hassen , Khalfaoui Hamdi
      Abstract: This paper examines the effect of oil price uncertainty on corporate social responsibility (CSR) for 507 US firms over the period 1985–2019. To investigate the nexus between oil price uncertainty and CSR, we have proceeded with a fixed-effects panel regression model over the period 1985–2019. Using a dataset of 507 US firms, different specifications of CSR and two alternatives measures of oil price uncertainty, we show that oil price uncertainty negatively influences the CSR in the global US panel and firm's characterized panel. This negative effect is dependent on firms' size, firm's age and value of book share of firms. US firms are exposed to more risk when carrying high levels of debt, resulting in reduced spending to improve social and environmental conditions. While the negative effect of oil price uncertainty on CSR is exacerbated in economic crisis periods. US firms are influenced by energy price volatility especially by oil price fluctuations which are the main factor of American economic growth. The rise of oil price uncertainty reduces sustainable corporate development and investment in the green economy. Rethinking renewable energies as an alternative solution in order to guarantee the performance and sustainability of social, environmental and cultural activities. Young and small firms, lower-share outstanding firms and high book value per share firms are the most negatively affected by oil price uncertainty and therefore their social responsibilities are reduced. However, by introducing interaction variables in the main model, we find that the most indebted firms on one hand and big firms and high-number shares outstanding firms, on the other hand, are the most influenced by oil price uncertainty which consequently limits their social and environmental responsibility.
      Citation: Journal of Economic Studies
      PubDate: 2021-08-02
      DOI: 10.1108/JES-04-2021-0201
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2021)
       
  • Share price informativeness and dividend smoothing behavior in GCC markets

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      Authors: Razaz Felimban , Sina Badreddine , Christos Floros
      Abstract: This paper examines the dividend smoothing (DS) behaviour in the Gulf Cooperation Council (GCC) countries in emerging markets where the response to news and the economic environment are different from those of developed countries. The authors examine the effect of share price informativeness on DS in the GCC markets using unbalanced panel data for a sample of 628 GCC-listed firms during 1994–2016. For the regression analysis, the hypotheses are tested using panel regressions and generalised method of moments (GMM) estimation. First, the Lintner model shows that the DS degree in GCC firms is comparable to that of a developed market. Second, and importantly, the results reveal that the DS in GCC firms is sensitive to private information of share prices. Finally, the findings indicate that information asymmetry (IA) and agency-based models affect the tendency to smooth dividends in the GCC markets. This study is the first study to measure the degree of DS using data for all GCC countries. The authors also identify other determinants of DS behaviour and test the agency and IA explanations for DS in GCC-listed firms. The findings are highly recommended to financial managers and analysts dealing with the GCC markets. This study helps financial analysts to use the share price informativeness as an indicator for the presence of the IA. The study results are beneficial to researchers in understanding the relationship between DS and share price informativeness.
      Citation: Journal of Economic Studies
      PubDate: 2021-07-28
      DOI: 10.1108/JES-08-2020-0379
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2021)
       
  • Monetary and macroprudential policies in the presence of external shocks:
           evidence from an emerging economy

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      Authors: Alexander Lubis , Constantinos Alexiou , Joseph G. Nellis
      Abstract: This paper examines the impact of using the reserve requirements, combined with foreign exchange (FX) intervention, as key instruments in an inflation-targeting framework. In the context of a dynamic stochastic general equilibrium (DSGE) framework and using Bayesian techniques, the authors estimate a model for the Indonesian economy using quarterly data spanning the period 2005Q2–2019Q4. The reserve requirement is found to assume a complementary role to that of the interest rate policy and FX intervention when used to stabilise the macroeconomy. This paper provides a benchmark for other emerging countries that consider adopting the inflation targeting framework and impose an FX intervention as part of their monetary policy.
      Citation: Journal of Economic Studies
      PubDate: 2021-07-22
      DOI: 10.1108/JES-11-2020-0577
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2021)
       
  • Interest rate forecasts in Latin America

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      Authors: Ibrahim Filiz , Jan René Judek , Marco Lorenz , Markus Spiwoks
      Abstract: This paper aims to assess the quality of interest rate forecasts for the money markets in Argentina, Brazil, Chile, Mexico and Venezuela for the period between 2001 and 2019. Future interest rate trends are of key significance for many business-related decisions. Thus, reliable interest rate forecasts are essential, for example, for banks that make profits by carrying out maturity transformations. The data that we analyze were collected by Consensus Economics through a monthly survey with over 120 renowned economists and were published between 2001 and 2019 in the journal Latin American Consensus Forecasts. The authors use the Diebold-Mariano test, the sign accuracy test, the TOTA coefficient and the unbiasedness test to determine the precision and biasedness of the forecasts. The research reveals that the forecasting work carried out in Brazil, Chile and Mexico is remarkably successful. The quality of forecasts from Argentina and Venezuela, on the other hand, is significantly poorer. Over 50 studies have already been published with regard to the accuracy of interest rate forecasts, emphasizing the importance of the topic. However, interest rate forecasts for Latin American money markets have hardly been considered thus far. The paper closes this research gap. Overall, the analyzed database amounts to a total of 209 forecast time series with 28,451 individual interest rate forecasts. This study is thus far more comprehensive than all previous studies.
      Citation: Journal of Economic Studies
      PubDate: 2021-07-15
      DOI: 10.1108/JES-02-2021-0108
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2021)
       
  • Liquidity management and monetary transmission: empirical analysis for
           India

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      Authors: Vikas Charmal , Ashima Goyal
      Abstract: A change in monetary operating procedures provides a natural experiment which is used to evaluate, first, whether Indian monetary policy transmission is better when durable liquidity is in surplus or when it is in deficit; second whether it is better with interest rates as the policy instrument or quantity of money or a mixture of the two. This study first shows that the period of analysis can be divided into two separate regimes one of liquidity surplus (2002–2010) and the other of deficit (2011–2019).This study then estimates separate structural vector auto-regressions (SVARs) for the financial and real sector, with relevant exogenous foreign, policy and other variables for each of the periods as well as SVARs for the whole period with alternative operating instruments. Monetary transmission from the repo rate was better during the period the liquidity adjustment facility (LAF) was in surplus with the central bank in absorption mode denoting excess durable liquidity. Pass through was faster and the repo rate had a greater influence on other variables. The impact of the rate on output gap exceeds that on inflation. The weighted average call money rate was found to outperform others as the operating target. Monetary policy has evolved so that policy rates are more effective in transmission compared to money supply, but best results are when durable liquidity is also in surplus. The results contribute to ongoing debates on the Indian monetary policy framework and give useful inputs for policy in emerging markets where research is scarce. They suggest keeping the LAF in deficit mode over 2011–19 was not optimal.
      Citation: Journal of Economic Studies
      PubDate: 2021-07-13
      DOI: 10.1108/JES-07-2020-0359
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2021)
       
  • The excessive gaming and gambling during COVID-19

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      Authors: Theodoros Daglis
      Abstract: By combining econometrics and multifractal methods, utilizing a financial framework, this paper will examine with objectivity the economic, financial and social impact of coronavirus disease 2019 (COVID-19) on society. Through Granger causality, the authors test the effect of the COVID-19 pandemic on excessive gaming and gambling activities, and through econometrics and multifractal methods, they combine the results to analyze a possible long-run relationship. The COVID-19 confirmed cases Granger cause all examined stocks. Based on the co-integration technique, and the multifractal cross-correlation analysis, a long-run relationship exists between all examined stocks and COVID-19. This is an empirical examination of a very important subject in the field of economics, namely, the consequences of the COVID-19-related events on the behavior of global citizens. It proposes a different and more objective approach (than the interviews and questionnaires) in the examination of this specific subject, through a financial framework, depicting the stock performance of the gaming and online gambling-related companies, and reflecting on the activity of these companies. It combines two different approaches from two different disciplines, namely econometrics and multifractal analysis, to test and describe the causal and the long-run relationship between the phenomena examined, combining the results to an overall and multidimensional view of this occurrence.
      Citation: Journal of Economic Studies
      PubDate: 2021-07-09
      DOI: 10.1108/JES-02-2021-0093
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2021)
       
  • Economic policy uncertainty and company's human capital

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      Authors: Iuliia Naidenova
      Abstract: The research aims to examine the impact of economic policy uncertainty (EPU) on a company's behaviour concerning its human capital. Additionally, the difference in effect for companies with specific human capital is analysed. The hypotheses are tested on a multi-industry sample of large public companies from five European countries, using panel data modelling. The index of Baker et al. (2016) is used to measure EPU. In the case of increasing EPU on one standard deviation, companies tend to reduce their human capital by approximately 1.7%. Moreover, despite theoretical assumptions, the effect on companies with more specific human capital is twice stronger. The heterogeneity of effect across countries and industries is also present. Regulators and governments should consciously introduce changes in relation to regulations and decrease the uncertainty of economic policy to stimulate corporate investments in human capital. This is the first study that considers the mechanism of EPU and its influence on corporate human capital. The results suggest that concerns regarding economic policy cause companies to reduce human capital.
      Citation: Journal of Economic Studies
      PubDate: 2021-07-05
      DOI: 10.1108/JES-11-2020-0545
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2021)
       
  • Exploring the motivations of using companies registered in tax havens to
           invest in UK housing market

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      Authors: Cornelia Agyenim-Boateng
      Abstract: The study is intended to identify the macroeconomic factors that drive the use of companies registered in tax havens to purchase properties in the UK housing market. Adopts an empirical study that uses Cointegration and Vector Autoregressive models to identify the influence or the motivations of using tax havens regime and its relationship with investment volume by analysing impulse responses of innovations to external and domestic factors. The model uses monthly data for the period 1996–2019. This provides sufficient evidence that offshore buyers are particularly motivated by exchange values and the quality of governance in host economies. There is much to be revealed from the spatial distribution of this phenomena and the welfare effect at the micro-level. To the best of my knowledge there is limited to no empirical study that primarily focus on the use of tax haven as an offshore investment tool in the UK housing market. The study also uses new dataset, Overseas Companies Ownership Dataset in the UK to understand housing ownership patterns by companies that are registered abroad dubbed, offshore buyers.
      Citation: Journal of Economic Studies
      PubDate: 2021-07-05
      DOI: 10.1108/JES-12-2020-0602
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2021)
       
  • Political machines and the curse of public resources in subnational
           democracies

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      Authors: Andrés Cendales , Nestor Garza , Andres Arcila
      Abstract: This paper argues that decentralization reforms in Colombia, implemented since the 1980s, have led to the decentralization of political clientelism rather than its demise. Clientelism is a system of political and economic institutions that turns every local democracy into an extractive political institution. The authors theoretically demonstrate that an increase in public resources will increase corruption. The authors develop and test a subnational public choice model, where clientelism in elections and corruption in public administration constitute a stable long-term institutional equilibrium. The model comprises two linked subgames: electoral tournament and corruption in public policy. The model makes two predictions that currently oppose predominant approaches: (1) increasing the severity of jail sentences to electoral crimes increases their price and the predominance of machine politics, instead of improving the quality of electoral tournaments and (2) increasing local governments' public finance increases clientelism in elections and corruption in public administration. The authors find evidence in favor of the theoretical model of curse of public resources, using difference-in-differences estimation with a database 2016–17 of Colombia's 1,034 municipalities. This country is well-suited for our analysis because it has a long-term commitment to formal democratic processes (since 1958), while plagued by endemic corruption and clientelism problems. (1) The theoretical approach is innovative and disruptive of current models on the problem, (2) the model builds upon the Colombian situation, a country with prominent corruption and political violence problems regardless of its relatively long-term commitment with free elections (since 1958) and (3) the theoretical discussion is tested using a comprehensive set of difference-in-differences estimations.
      Citation: Journal of Economic Studies
      PubDate: 2021-07-02
      DOI: 10.1108/JES-03-2021-0148
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2021)
       
  • Government failures and non-performing loans in European countries: a
           spatial approach

         This is an Open Access Article Open Access Article

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      Authors: Ferdinando Ofria , Massimo Mucciardi
      Abstract: The purpose is to analyze the spatially varying impacts of corruption and public debt as % of GDP (proxies of government failures) on non-performing loans (NPLs) in European countries; comparing two periods: one prior to the crisis of 2007 and another one after that. The authors first modeled the NPLs with an ordinary lest square (OLS) regression and found clear evidence of spatial instability in the distribution of the residuals. As a second step, the authors utilized the geographically weighted regression (GWR) to explore regional variations in the relationship between NPLs and the proxies of “Government failures”. The authors first modeled the NPL with an OLS regression and found clear evidence of spatial instability in the distribution of the residuals. As a second step, the author utilized the Geographically Weighted Regression (GWR) (Fotheringham et al., 2002) to explore regional variations in the relationship between NPLs and proxies of “Government failures” (corruption and public debt as % of GDP). The results confirm that corruption and public debt as % of GDP, after the crisis of 2007, have affected significantly on NPLs of the EU countries and the following countries neighboring the EU: Switzerland, Iceland, Norway, Montenegro, and Turkey. In a spatial prospective, unprecedented in the literature, this research focused on the impact of corruption and public debt as % of GDP on NPLs in European countries. The positive correlation, as expected, between public debt and NPLs highlights that fiscal problems in Eurozone countries have led to an important rise of problem loans. The impact of institutional corruption on NPLs reports that the higher the corruption, the higher is the level of NPLs.
      Citation: Journal of Economic Studies
      PubDate: 2021-07-01
      DOI: 10.1108/JES-01-2021-0010
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2021)
       
  • Are firms' expectations on the availability of external finance rational,
           adaptive or regressive'

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      Authors: Dimitrios Anastasiou , Stelios Giannoulakis
      Abstract: This study investigates which expectation formation mechanism governs Eurozone firms regarding their expectations on external finance availability. In this study, we link consecutive surveys from the Survey on the Access to Finance of Enterprises to bring new evidence on how non-financial corporations shape their expectations on external finance availability. In line with the past literature, we demonstrate that the data reject the Rational Expectations hypothesis, and we find evidence in favor of the Adaptive Expectation mechanism. This is the first study studying firms' expectations of external finance availability, implementing survey data of firms' expectations from the SAFE database on a country level. The formation of firm expectations is vital in directing policymakers in designing appropriate monetary policies, as both the employment and inflation targets of central banks around the world are highly dependent on the firm-level decision process.
      Citation: Journal of Economic Studies
      PubDate: 2021-06-28
      DOI: 10.1108/JES-12-2020-0608
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2021)
       
  • The impact of long-term riskless asset on ensuring liquidity and
           preventing banking fragility

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      Authors: Mahmoud Shahin
      Abstract: Through portfolio diversification, the author identifies the risk sharing deposit contract in a three-period model that maximizes the ex ante expected utility of depositors. In this paper, the author extends the study by Allen and Gale (1998) by adding a long-term riskless investment opportunity to the original portfolio of a short-term liquid asset and a long-term risky illiquid asset. Unlike Allen and Gale, there are no information-based bank runs in equilibrium. In addition, the model can improve consumers' welfare over the Allen and Gale model. The author also shows that the bank will choose to liquidate the cheaper investments, in terms of the gain-loss ratios for the two types of existing long-term assets, when there is liquidity shortage in some cases. Such a policy reduces the liquidation cost and enables the bank to meet the outstanding liability to depositors without large liquidation losses. The author believe that the reader would be interested in this article because it is relevant to real world where depositors rush to withdraw their deposits from a bank if there is negative information about future prospect of the bank asset portfolio and bank investment. Economists and financial analysts need to determine the suitable mechanism to improve the stability of the bank and the depositor welfare.
      Citation: Journal of Economic Studies
      PubDate: 2021-06-24
      DOI: 10.1108/JES-11-2020-0558
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2021)
       
  • Fiscal adjustments, income inequality and economic growth: an empirical
           analysis of Japanese prefectures

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      Authors: Patricia Kako Ouraga
      Abstract: This paper investigates the joint relationship between economic growth, income inequality and fiscal adjustments using a panel of 47 Japanese prefectures from 1998 to 2017. To assess jointly fiscal adjustment impacts on growth and inequality and to take into account the interdependence between these variables, the authors use a simultaneous equation model and estimate it by using the three-stage least squares estimation method. The results show evidence of a trade-off between growth and inequality through fiscal adjustments. They reveal that first, fiscal adjustments have contractionary effects on growth. Second, they highlight the disparity between urban and rural taxpayers. Third, they provide evidence of a trade-off between fiscal adjustments and inequality through the labor market. Based on the literature, the composition of fiscal adjustments is a crucial factor in analyzing fiscal adjustment impacts on economic growth and income inequality. The authors do not consider this aspect in the analysis; however, fiscal policy outcomes variables are included as a workaround for this. These results suggest that authorities favor expenditure-based adjustments as they are less contractionary on the economy. Moreover, they should finance public expenditures through a tax on capital in order to mitigate fiscal adjustment impacts on inequality while promoting growth. The paper is novel in testing the existence of a trade-off between economic growth and income inequality through fiscal adjustments at a sub-national level with an additional focus on urban and rural regions.
      Citation: Journal of Economic Studies
      PubDate: 2021-06-22
      DOI: 10.1108/JES-10-2020-0508
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2021)
       
  • Assessing the impact of Covid-19 pandemic in Turkey with a novel economic
           uncertainty index

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      Authors: Erhan Mugaloglu , Ali Yavuz Polat , Hasan Tekin , Edanur Kılıç
      Abstract: This study aims to measure economic uncertainty in Turkey by a novel economic uncertainty index (EUI) employing principal component analysis (PCA). We assess the impact of Covid-19 pandemic in Turkey with our constructed uncertainty index. In order to obtain the EUI, this study employs a dimension reduction method of PCA using 14 macroeconomic indicators that spans from January 2011 to July 2020. The first principal component is picked as a proxy for the economic uncertainty in Turkey which explains 52% of total variation in entire sample. In the second part of our analysis, with our constructed EUI we conduct a structural vector autoregressions (SVAR) analysis simulating the Covid-19-induced uncertainty shock to the real economy. Our EUI sensitively detects important economic/political events in Turkey as well as Covid-19-induced uncertainty rising to extremely high levels during the outbreak. Our SVAR results imply a significant decline in economic activity and in the sub-indices as well. Namely, industrial production drops immediately by 8.2% and cumulative loss over 8 months will be 15% on average. The losses in the capital and intermediate goods are estimated to be 18 and 25% respectively. Forecast error variance decomposition results imply that uncertainty shocks preserve its explanatory power in the long run, and intermediate goods production is more vulnerable to uncertainty shocks than overall industrial production and capital goods production. The results indicate that monetary and fiscal policy should aim to decrease uncertainty during Covid-19. Moreover, since investment expenditures are affected severely during the outbreak, policymakers should impose investment subsidies. This is the first study constructing a novel EUI which sensitively captures the critical economic/political events in Turkey. Moreover, we assess the impact of Covid-19-driven uncertainty on Turkish Economy with a SVAR model.
      Citation: Journal of Economic Studies
      PubDate: 2021-06-21
      DOI: 10.1108/JES-02-2021-0081
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2021)
       
  • Income and healthcare financing system in the United States: an asymmetric
           analysis

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      Authors: Mehdi Barati , Hadiseh Fariditavana
      Abstract: The purpose of this study is to first assess how the US healthcare financing system is influenced by income variation. Then, it examines whether or not the impact of income variation is asymmetric. For the analyses of this paper, the autoregressive distributed lag (ARDL) model is implemented to a data set covering the period from 1960 to 2018. The results provide evidence that major funding sources of aggregate healthcare expenditure (HCE) respond differently to changes in income. The results also imply that the effect of income is not always symmetric. Many studies have attempted to identify the relationship between income and HCE. A common feature of past studies is that they have only focused on aggregate HCE, while one might be interested in knowing how major funders of aggregate HCE would be affected by changes in income. Another common feature of past studies is that they have assumed that the relationship between income and HCE is symmetric.
      Citation: Journal of Economic Studies
      PubDate: 2021-06-18
      DOI: 10.1108/JES-12-2020-0592
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2021)
       
  • Liquidity and asset pricing: evidence from a new free-float-adjusted price
           impact ratio

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      Authors: Huong Le , Andros Gregoriou
      Abstract: This paper aims to empirically examine the relationship between stock liquidity and asset pricing, using a new price impact ratio adjusted for free float as the approximation of liquidity. The free-float-adjusted ratio is free from size bias and encapsulates the impact of trading frequency. It is more comprehensive than alternative price impact ratios because it incorporates the shares available to the public for trading. The authors are using univariate and multivariate econometric methods to test the significance of a newly created price impact ratio. The authors are using secondary data and asset pricing models in their analysis. The authors use a data sample of all US listed companies over the period of 1997–2017. The authors provide evidence that the free-float-adjusted price impact ratio is superior to all price impact ratios used in the previous academic literature. The authors also discover that their findings are robust to the financial crises between 2007 and 2009. This is the first comprehensive study on a newly established price impact ratio. The authors show the significance of this ratio and explain why it is superior to all previous price impact ratios, established in prior research.
      Citation: Journal of Economic Studies
      PubDate: 2021-06-08
      DOI: 10.1108/JES-04-2021-0182
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2021)
       
  • Remittances and food security

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      Authors: Yogeeswari Subramaniam , Tajul Ariffin Masron , Nik Hadiyan Nik Azman
      Abstract: The continuous and rapid growth of remittances has become one of the sources of income for millions of poor families in developing countries. As such, an increase of remittance flow can have a significant impact on the ability of the household not only to get enough food but also to get nutritious foods. Therefore, this study investigates the implication of remittances on food security (FS) in 51 developing countries from 2011–2016. A dynamic panel estimator is applied to examine remittances and FS nexus. By using the dynamic panel estimator, the results indicate that the level of food supply tends to be higher in countries with a higher flow of remittances. This study justifies the need for high income as well as high middle-income countries to be more open and receptive to migration as this could indirectly the mean through which host countries can assist economic development in low-income developing countries. Given the diverse measure of FS, past studies demonstrated a positive association between remittance and FS, but it may focus on only one dimension of FS. To the authors’ limited knowledge, this is not enough to know the importance of remittance in determining the overall FS status. Hence, this study wishes to extend the literature by using a more comprehensive measure of FS and more countries in the sample.
      Citation: Journal of Economic Studies
      PubDate: 2021-05-28
      DOI: 10.1108/JES-05-2020-0239
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2021)
       
  • Education in the times of a pandemic: parental socioeconomic
           characteristics and time spent educating children

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      Authors: Stefani Milovanska-Farrington
      Abstract: This research explores the impact of parental educational attainment, race, ethnicity, gender and employment on the time parents spend educating their children during the COVID-19 pandemic. School closures to prevent the spread of COVID-19 have affected billions of students worldwide, and have had an impact on the economy and the society. With classes being cancelled or taught remotely, the importance of parental intervention in children's education has accelerated. The authors find that more educated parents allocate more time on child education, while higher income and employment have an adverse effect. Fathers are likely to spend more time than mothers in teaching and educating their children during COVID-19. The findings have implications in identifying children whose education suffers the most in times of a pandemic and determining the main target group of policies designed to train children, encourage parental involvement and support children's educational development. This is the first paper that examines the variations in parental time with children across social and economic subgroups during the COVID-19 pandemic. The authors also focus on the time parents spend educating their children rather than just supervising them. The authors additionally examine the determinants of the time children study on their own. Finally, the analysis is novel because it is based on the newest available data collected to examine the trends and experiences of individuals in the United States triggered by COVID-19.
      Citation: Journal of Economic Studies
      PubDate: 2021-05-27
      DOI: 10.1108/JES-01-2021-0013
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2021)
       
  • Evaluating the wage differential between the formal and informal economy:
           a gender perspective

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      Authors: Colin Williams , Ardiana Gashi
      Abstract: Despite a widespread assertion that wages are lower in the informal than formal economy, there have been few empirical evaluations of whether this is the case and even fewer studies of the gender variations in wage rates in the formal and informal economies. Consequently, whether there are wage benefits to formal employment for men and women is unknown. The aim of this paper is to evaluate the wage differential between formal and informal employment for men and women. To evaluate the wage differential between the formal and informal economy for men and women, data are reported from a 2017 survey involving 8,533 household interviews conducted in Kosovo. Using decomposition analysis and after controlling for other determinants of wage differentials, the finding is that the net hourly earnings of men in formal employment are 26% higher than men in informal employment and 14% higher for women in formal employment compared with women in informal employment. Given the size of the wage differential, the costs for employers will need to significantly increase in terms of the penalties and risks of detection if informal employment is to be prevented, along with more formal employment opportunities using active labour market policies for vulnerable groups, perhaps targeted at men (who constitute 82.8% of those in informal employment). This is one of the first studies to evaluate the differentials in wage rates in the formal and economy from a gender perspective.
      Citation: Journal of Economic Studies
      PubDate: 2021-05-25
      DOI: 10.1108/JES-01-2021-0019
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2021)
       
  • Does disease outbreak news impact equity, commodity and foreign exchange
           market' Investors' fear of the pandemic COVID-19

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      Authors: Imlak Shaikh , Toan Luu Duc Huynh
      Abstract: Market volatility is subject to good or bad news and even responses to fake news and policy changes. In this piece of work, the authors consider the effects of the recent COVID-19 pandemic event on the global equity market, commodities and FX market, measured in terms of the investors' fear index. In this empirical work, the authors employ time series-based regression models followed by augmented dummy regressions and growth of the COVID-19. COVID-19-induced investors' fear appears to be higher in the equity segment for the first time since the market crash of 1987 and the global financial crisis of 2008–2009. Furthermore, this disease outbreak shock has been more pronounced in terms of crude oil prices. Besides, a market participant in the commodity and FX market has paid a disproportionate premium to protect such pandemic development. Findings show that Options act as the best hedge against an uncertainty like COVID-19 and that option-based implied volatility is the best measure of investors' fear and market volatility. This study has practical implications for the financial markets, e.g. (1) Contagious disease outbreak news matters for the equity, commodity, and foreign exchange markets – empirical outcome validates the theory of market efficiency valid for the Options. (2) Option's implied volatility is the best indicator of investor fear measured for the unprecedented economic news. Further implication holds for the policymakers and society, e.g. (1) The unavailability of short-selling could be one plausible reason for increased uncertainty and volatility; hence, policymakers should look upon this issue at the exchange level. (2) Any market needs multiple lines of risk management, effective price discovery and attractive liquidity. The study is novel in terms of presenting market behavior amid COVID-19 across global equity markets and commodities and FX markets.
      Citation: Journal of Economic Studies
      PubDate: 2021-05-25
      DOI: 10.1108/JES-10-2020-0503
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2021)
       
  • Demographic changes and savings behavior: the experience of a developing
           country

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      Authors: Ebrahim Rezaei
      Abstract: This paper aims to disclose the savings behavior of Iran's economy in the context of demographic transition. Employing a version of Ramsey-Cass-Koopmans growth model, this paper benefits from a broad range of data and variables which are mainly taken from the Central Bank of Iran's database. The study uses actual and calculated data to produce analogous simulated data. The data cover the 1970–2015 period. This long period provides an opportunity to simulate more valid time series. It is worth noting that due to the severe economic sanctions imposed on the Iran's economy, particularly after 2017, some most recent data have been obliterated from the sample. The results, stemming from the simulated model, hint that; firstly, the population variable is a notable determinant of the savings rate. Secondly, the effects of a slump in the population growth rate would attenuate the savings level significantly. Thirdly, other pragmatic steps could be taken to redress the fallout of the demographic changes. There are some limitations in providing broad data related to economic sectors in Iran. The savings data, for instance, are available as an aggregated time series, and if the authors had wide data of household level, they would have been able to build more detail-based model. Similar to this issue of lack of households’ income-based data, some measures such as high or low levels as well as detailed demographic data could be helpful in sophisticated household level resulting. In addition, the complex relationship between the government and social security (pension) funds, in terms of financing part of government's budget deficit by these funds, thwarts a typical researcher in using comprehensive and transparent government expenditure data in their research. In other words, the possible positive or negative role of the funds, as a related issue to the demographic changes, cannot simply be determined in the model. It might be possible after necessary corrections are carried out in the mentioned relations. In fact, the problem statement in this paper is to discern how the population aging can impact the saving rates on the one hand, and to what extent its repercussion can be modified by the other theoretical-based determinants on the other. In fact, the underlying argument of the present research arises from the stylized facts concerning prognosticates of the future evolutions of the world's population. To that end, the study will use Iran's economic and demographic data.
      Citation: Journal of Economic Studies
      PubDate: 2021-05-24
      DOI: 10.1108/JES-01-2021-0021
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2021)
       
  • Uncertainty and nonlinear macroeconomic effects of fiscal policy in the
           US: a SEIVAR-based analysis

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      Authors: Ansgar Belke , Pascal Goemans
      Abstract: The purpose of this paper is to investigate whether the macroeconomic effects of government spending shocks vary with the degree of macroeconomic uncertainty. The authors use quarterly US data from 1960 to 2017 and employ the Self-Exciting Interacted VAR (SEIVAR) to compute nonlinear generalized impulse response functions (GIRFs) to an orthogonalized government spending shock during tranquil and in uncertain times. The parsimonious design of the SEIVAR enables us to focus on extreme deciles of the uncertainty distribution and to control for the financing side of the government budget, monetary policy, financial frictions and consumer confidence. Fiscal spending has positive output effects in tranquil times, but is contractionary during times of heightened macroeconomic uncertainty. The results indicate an important role of the endogenous response of macroeconomic uncertainty. Investigating different government spending purposes, only increases in research and development expenditures reduce uncertainty and boost output during uncertain times. The authors contribute to the literature in using a method which allows to control for a large set of confounding factors and accounts for the uncertainty response.
      Citation: Journal of Economic Studies
      PubDate: 2021-05-18
      DOI: 10.1108/JES-07-2020-0334
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2021)
       
  • Remittances, electricity consumption and electric power losses in Jamaica

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      Authors: Anupam Das , Adian McFarlane
      Abstract: The purpose of this paper is to examine the impact of remittance inflows (remittances) on electricity consumption and electric power losses in Jamaica. The authors use annual data from 1976 to 2014 and apply vector error correction modelling, Granger causality testing and impulse response analysis. First, the authors find that there is co-integration between remittances and the energy variables, namely electricity consumption and electric power losses. Second, short-run Granger causality exists between the energy variables and remittances. This causality is bidirectional between the energy variables and positive changes in remittances, but it is unidirectional running from the energy variables to negative movements in remittances. Third, the authors find that in the long-run remittances have a negative relationship with electric power losses and a positive relationship with the consumption of electricity. Findings from this paper will help to elucidate the relationship between electricity consumption, and electric power losses, and remittances. The problem of electric power losses is acute in Jamaica and it is mostly due to theft. At the same time, Jamaica receives significant remittances. Social policy could have a role to encourage the use of remittances to help stem the theft of electricity. This is the first study that examines the relationships between remittances, electricity consumption and electric power losses.
      Citation: Journal of Economic Studies
      PubDate: 2021-04-29
      DOI: 10.1108/JES-09-2020-0466
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2021)
       
  • Effects of economic policy uncertainty and political uncertainty on
           business confidence and investment

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      Authors: Gabriel Caldas Montes , Fabiana da Silva Leite Nogueira
      Abstract: This study estimates the effects of political uncertainty and economic policy uncertainty on business confidence. Moreover, it also examines business confidence as a transmission channel of political uncertainty and economic policy uncertainty to investment. The study addresses the Brazilian case from May 2004 to December 2017. Brazil experienced situations of political instability and public distrust in government and its policies, which reflected on the economic environment. The study uses two business confidence indicators that capture entrepreneurs' sentiment in relation to their business and the economy. All models are estimated using ordinary least squares and generalized method of moments. The estimates reveal that increases in both political uncertainty and economic policy uncertainty reduce business confidence. The findings also indicate that business confidence acts as a transmission mechanism, i.e. uncertainties affect investments through business confidence. The findings point to the following practical implications related to the existence of uncertainties in the Brazilian economy: different institutional difficulties and government indecisions have blurred the political scene and caused political uncertainties. In addition, the same aspects that blurred the political scene also caused uncertainties in relation to economic policy that undermined business confidence, and affected investment. There is a vast literature on business confidence, as well as studies addressing the relationship between business confidence and investment. This study differs from other studies as follows: in addition to the political uncertainty, it also analyzes the effect of economic policy uncertainty on business confidence; it uses different measures to capture political instability, and it analyzes whether business confidence acts as a transmission channel of both uncertainties to investments.
      Citation: Journal of Economic Studies
      PubDate: 2021-04-29
      DOI: 10.1108/JES-12-2020-0582
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2021)
       
  • Bayesian monthly index for building activity based on mixed frequencies:
           the case of Chile

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      Authors: Byron J. Idrovo-Aguirre , Javier E. Contreras-Reyes
      Abstract: This paper combines the objective information of six mixed-frequency partial-activity indicators with assumptions or beliefs (called priors) regarding the distribution of the parameters that approximate the state of the construction activity cycle. Thus, this paper uses Bayesian inference with Gibbs simulations and the Kalman filter to estimate the parameters of the state-space model, used to design the Imacon. Unlike other economic sectors of similar importance in aggregate gross domestic product, such as mining and industry, the construction sector lacked a short-term measure that helps to identify its most recent performance. Indeed, because these priors are susceptible to changes, they provide flexibility to the original Imacon model, allowing for the assessment of risk scenarios and adaption to the greater relative volatility that characterizes the sector's activity. The classic maximum likelihood method of estimating the monthly construction activity index (Imacon) is rigid to the incorporation of new measures of uncertainty, expectations or different volatility (risks) levels in the state of construction activity. In this context, this paper uses Bayesian inference with 10,000 Gibbs simulations and the Kalman filter to estimate the parameters of the state-space model, used to design the Imacon, inspired by the original works of Mariano and Murasawa (2003) and Kim and Nelson (1998). Thus, this paper consists of a natural extension of the classic method used by Tejada (2006) in the estimation of the old Imacon.
      Citation: Journal of Economic Studies
      PubDate: 2021-04-05
      DOI: 10.1108/JES-01-2021-0022
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2021)
       
  • The impact of monetary policy on income inequality: evidence from Eurozone
           markets

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      Authors: Konstantina Liosi , Spyros Spyrou
      Abstract: This study examines the impact of monetary policy on income inequality in Eurozone countries for the period between 2005 and 2017. The authors use regression analysis, panel vector autoregression (PVAR) analysis and impulse response functions, in order to examine the impact of monetary policy on income inequality in Eurozone countries. This study examines the impact of monetary policy on income inequality in Eurozone countries for the period between 2005 and 2017. The results indicate that, on average, monetary policy tends to increase income inequality. A closer examination indicates that for Ireland, Germany and the Netherlands monetary policy has no impact on income inequality or a weak impact (France), while for Spain, Portugal, Greece and Italy the impact is more pronounced. PVAR analysis and impulse response functions further indicate that female income inequality responds more significantly to monetary policy. In contrast to previous studies the authors estimate separate models for males, females and the total population to evaluate whether gender is an important factor. Furthermore, the authors use two proxies for monetary policy: the shadow rate (SR) and the total assets (TAs) of the central bank.
      Citation: Journal of Economic Studies
      PubDate: 2021-04-02
      DOI: 10.1108/JES-07-2020-0328
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2021)
       
  • Determinants of working capital: empirical evidence on manufacturing SMEs

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      Authors: Filipe Sardo , Zélia Serrasqueiro
      Abstract: This study seeks to analyse the determinants of working capital of manufacturing small and medium-sized enterprises (SMEs), particularly the effect of the probability of financial distress on working capital. Using panel data models, the authors analyse a sample of 3994 manufacturing SMEs for the period 2011–2017. The results suggest that SMEs pursue conservative working capital management to avoid the failure to fulfil the commitments with creditors. Also, the positive impact of the probability of financial distress on SME working capital suggests that SMEs exposed to a higher probability of bankruptcy invest more in working capital to avoid the risk of default and financing imbalance. The novelty of this study is to extend the consequences of aggressive or conservative working capital management by analysing the probability of financial distress on working capital.
      Citation: Journal of Economic Studies
      PubDate: 2021-03-31
      DOI: 10.1108/JES-10-2020-0513
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2021)
       
  • How successful countries are in promoting digital transactions during
           COVID-19

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      Authors: Hoda Mansour
      Abstract: This paper aims to assess whether the coronavirus disease 2019 (COVID-19) pandemic has encouraged governments to take actions towards fostering digital means of payments and financial transactions to stimulate economic activities and achieve higher financial inclusion. Using a logit model, this paper tests the impact of the level of income and GDP per capita, government effectiveness, digital adoption, number of commercial banks and the pandemic-related closure of business and stores due to full lockdowns on governments’ policy response regarding digital means of payments. The author finds that low- and lower-middle-income countries had significantly responded to the surged need for digital means of payment during the pandemic compared to the upper-middle-income and high-income countries. The author also finds that government effectiveness and the number of commercial banks were predictors of government policy response, while the full lockdown of countries and the overall digital adoption were not. Data of the post-COVID-19 pandemic are limited, and the sample size is small. This is the first paper to empirically model governments' response during the pandemic to promote digital means of payments. This paper gives insight into post-crisis potential changes in digital payment adoption in the upcoming years.
      Citation: Journal of Economic Studies
      PubDate: 2021-03-25
      DOI: 10.1108/JES-10-2020-0489
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2021)
       
  • Attitudes and responses to corruption in tax systems: peer effects and
           social influences in transition countries

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      Authors: John E. Anderson
      Abstract: Analyze how peer effects and social influences affect attitudes and responses to corruption in tax systems, identifying factors that improve tax morale. Life in Transition Survey (LITS III, 2016) data are analyzed using ordered probit models of corrupt tax officials, Heckman-style selection models of the extent of corruption, probit models of reasons given for not reporting corruption and ordered probit models of the frequency of informal payments to tax officials. Peer effects and social influences significantly affect perceptions of and responses to corruption. Tax morale is supported in communities where people trust one another, where there is greater respect for the law and where people can achieve greater life satisfaction. Results are specific to transition countries represented in the data. Findings can help improve tax morale and stabilize fiscal systems in transition countries. Enhanced tax morale can be facilitated by building inclusive, respectful and transparent institutions. This study uses the latest LITS III data with a focus on peer effects and social influences, with improved empirical strategies.
      Citation: Journal of Economic Studies
      PubDate: 2021-03-24
      DOI: 10.1108/JES-07-2020-0351
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2021)
       
  • The gender wage gap and the presence of foreign firms in Vietnam: evidence
           from unconditional quantile regression decomposition

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      Authors: Dao Dinh Nguyen , Xinran Zhang , Trang Huyen Nguyen
      Abstract: The objective of this study is to estimate the gender wage gap in Vietnam and its rural and urban areas, especially with the presence of foreign firms. The authors use cross-sectional data from three rounds of the Vietnam Household Living Standards Survey (VHLSS 2008, 2012, and 2016) to investigate this issue. The unconditional quantile regression and Oaxaca–Blinder (OB) decomposition are used in this article. The article finds the gender wage gap favouring men, especially in higher quantiles of the wage distribution. The gap in urban Vietnam was higher than in rural areas. The OB decomposition indicates that gender wage gap is mainly driven by gender discrimination. The differences in return to participation in foreign companies only contributed significantly and positively to such a gap in some models. It suggests that the gap in those models is affected by gender discrimination in employment opportunities in foreign companies. Regarding the endowment effect, some models provide the significantly negative impacts of foreign firms on gender wage inequality. The study suggests that policies to reduce the gender wage gap should pay more attention to foreign firms, especially at higher wage classes.
      Citation: Journal of Economic Studies
      PubDate: 2021-03-23
      DOI: 10.1108/JES-10-2020-0506
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2021)
       
  • Impact of general trust on bank risk-taking: the moderating effect of
           confidence in banks

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      Authors: Heba Masoud , Mohamed Albaity
      Abstract: This study examines the effect of general trust (GT) and confidence in banks (CIB) on bank risk-taking. Besides, it explores the moderating role of CIB on the relationship between GT and bank risk-taking. Secondary data was obtained from the World Value Survey, World Bank and BankFocus from 2011 to 2018. Two-step system GMM estimator was used to examine the links between the GT and CIB with bank risk-taking in MENA region. Results indicated that both GT and CIB negatively influenced bank risk-taking. Moreover, CIB weakened the negative relationship between GT and bank risk-taking. However, the results were different for MENA region as compared to the full sample. The studies on the link between trust and bank risk-taking are either carried out on an international sample or using a developed economies sample. However, the authors believe that developing economies might exhibit different relationships due to cultural and structural differences present in developed countries. Besides, the authors believe that testing the moderating effect of CIB could shed more light on the differences between developing and developed countries.
      Citation: Journal of Economic Studies
      PubDate: 2021-03-19
      DOI: 10.1108/JES-09-2020-0479
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2021)
       
  • Impact of foreign direct investment and international tourism on long-run
           economic growth of Estonia

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      Authors: Amin Sokhanvar , Glenn P. Jenkins
      Abstract: International tourism and FDI inflows have generated detectable beneficial impacts on the economy of Estonia in the last decades. However, recently, poor international market conditions mostly caused by the trade war and COVID-19 pandemic have been a potential threat to these two factors. Besides, the poor performance of investments in recent years is behind the stagnation of productivity in Estonia. This study examines the dynamics of the effects of these factors on the rate of economic growth in Estonia and provides policy implications in line with sustained recovery. A nonlinear ARDL technique is employed in this study to investigate the long-run effects of FDI and the degree of tourism specialization on economic growth rate. Our findings indicate that the economic growth rate of Estonia in the long run has been positively affected by both the rate of FDI inflows and international tourism. This is the first study that employs a non-linear approach to investigate the dynamics of long-run effects of FDI and tourism specialization on the rate of economic growth in Estonia and provides policy implications in line with optimal growth strategy considering the economic structure, the current level of productivity and available potentials in this economy.
      Citation: Journal of Economic Studies
      PubDate: 2021-03-19
      DOI: 10.1108/JES-11-2020-0543
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2021)
       
  • An examination of calendar anomalies: evidence from the Thai stock market

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      Authors: Rattaphon Wuthisatian
      Abstract: The study examines the existence of calendar anomalies, including the day-of-the-week (DOW) effect and the January effect, in the Stock Exchange of Thailand. Using daily stock returns from March 2014 to March 2019, the study performs regression analysis to examine predictable patterns in stock returns, the DOW effect and the January effect, respectively. There is strong evidence of a persistent monthly pattern and weekday seasonality in the Thai stock market. Specifically, Monday returns are negative and significantly lower than the returns on other trading days of the week, and January returns are positive and significantly higher than the returns on other months of the year. The findings offer managerial implications for investors seeking trading strategies to maximize the possibility of reaching investment goals and inform policymakers regarding the current state of the Thai stock market. First, the study investigates calendar anomalies in the Thai stock market, specifically the DOW effect and the January effect, which have received relatively little attention in the literature. Second, this is the first study to examine calendar anomalies in the Thai stock market across different groups of companies and stock trading characteristics using a range of composite indexes. Furthermore, the study uses data during the period 2014–2019, which should provide up-to-date information on the patterns of stock returns in Thailand.
      Citation: Journal of Economic Studies
      PubDate: 2021-03-17
      DOI: 10.1108/JES-06-2020-0298
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2021)
       
  • Income and factor substitution: an investigation on the Solow growth model
           under the constant elasticity of substitution

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      Authors: Sedat Alatas
      Abstract: The purpose of this study is to examine whether the elasticity of substitution (ES) varies between developed and developing countries. The author derives the growth regressions from the Solow model under the constant elasticity of substitution production function by using the first-order Taylor series expansion and estimate them for each country group classified based on time-varying behavior of income per worker using the data-driven algorithm. The ES is not unitary and varies among country groups. Developed countries generally have a higher ES than developing countries. For the first time, the author uses the first-order Taylor series expansion to linearize the steady-state value of income per worker, as the author considers this approach to be relatively more straight-forward and tractable. Furthermore, the author estimates the equations using both cross-section and panel data techniques and employs the data-driven algorithm proposed by Phillips and Sul (2007) to classify countries.
      Citation: Journal of Economic Studies
      PubDate: 2021-03-12
      DOI: 10.1108/JES-07-2020-0335
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2021)
       
  • GDP and population growth: Evidence of fractional cointegration with
           historical data from 1820 onwards

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      Authors: Luis Gil-Alana , Cecilia Font , Águeda Gil-López
      Abstract: Using data from 1820 onwards in a group of seven countries, namely, Australia, Chile, Denmark, France, the UK, Italy and the USA, the authors investigate if there is a long-run equilibrium relationship between the two variables (GDP and population). Using fractional integration and cointegration methods, this paper deals with the analysis of the relationship between GDP and population using historical data. The authors’ results show first that the two series are highly persistent, presenting orders of integration close to or above 1 in practically all cases. Testing cointegration between the two variables, the results are quite variable depending on the methodology and the bandwidth numbers used, but if cointegration takes places, it only occurs in the cases of France, Italy and the UK. The fact that the orders of integration of all series is close to 1 indicate high levels of persistence with shocks having permanent effects and requiring strong measures to recover the original trends. Any shock affecting the series will have a permanent nature, persisting forever. Updated time series techniques based on concepts such as fractional integration and cointegration are used.
      Citation: Journal of Economic Studies
      PubDate: 2021-03-11
      DOI: 10.1108/JES-06-2020-0307
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2021)
       
  • Does financial inclusion induce poverty, income inequality, and financial
           stability: empirical evidence from the 54 African countries'

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      Authors: Iftikhar Khan , Ismail Khan , Aziz Ullah Sayal , Muhammad Zubair Khan
      Abstract: The aim of the study is to examine the impact of financial inclusion on poverty, income inequality and financial stability using panel data of 54 African countries. To achieve this objective, the current study used multiple regressions across an unbalanced panel data of 54 African countries which are based on the four years mean value for the period 2001–2019. The results show that financial inclusion (FI) is a valuable indicator; it reduces poverty, income inequality and improves financial stability. The study invokes the attention of government and policymakers to build up a financially inclusive system which, in turn, leads to improve financial stability and lower poverty and income inequality. They should focus on quality and sustainable financial products and services in terms of financial inclusion to avoid dominant accounts and ensure consumer protection. This adds to the scarce literature on the impact of financial inclusion on poverty, income inequality and financial stability in the context of African countries. The study contributes to the literature on the issue of financial inclusion and poverty, income inequality and financial stability by reconfirming (or otherwise) findings of previous studies.
      Citation: Journal of Economic Studies
      PubDate: 2021-03-11
      DOI: 10.1108/JES-07-2020-0317
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2021)
       
  • The effects of corruption on growth, human development and natural
           resources sector: empirical evidence from a Bayesian panel VAR for Latin
           American and Nordic countries

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      Authors: Dante A. Urbina , Gabriel Rodríguez
      Abstract: The purpose of this paper is to analyze the effects of corruption on economic growth, human development and natural resources in Latin American and Nordic countries. Using the hierarchical prior of Gelman et al. (2003), a Bayesian panel Vector AutoRegression (VAR) model is estimated. In addition, two alternative approaches are considered, namely, a panel error correction VAR model and an asymmetric panel VAR model. The results reveal some relevant contrasts: (1) in Latin America there is support for the sand the wheels hypothesis in Bolivia and Chile, support for the grease the wheels hypothesis in Colombia and no significant impact of corruption on growth in Brazil and Peru, while in Nordic countries the response of growth to shocks in corruption is negative in all cases; (2) corruption negatively affects human development in all countries from both regions; (3) corruption tends to spur natural resources sector in Latin American countries, while it is detrimental for natural resources sector in Nordic countries. The panel VAR approach uses recursive scheme identification. The authors have analyzed robustness using alternative ordering of the variables. The authors also have followed two alternatives suggested by the Referee: a panel error correction VAR model and a panel asymmetric VAR model. However, another more sophisticated identification scheme could be used. Also other variables could be introduced in the VAR model. Regardless of the issue of the “grease” vs the “sand the wheels” debate, corruption should be reduced because it is anyway harmful for human development. The differences in the results for Latin American and Nordic countries show that the effects of corruption have to be assessed considering the different institutional and economic conditions of the countries analyzed. Governments should seek to reduce corruption because, despite corruption can have mixed effects on economic growth in some contexts, it is anyway harmful for human development. Besides, the finding that in some Latin American countries more activity in the extractive industries is generated by means of corruption confirm the association between corruption and extractivism found by Gudynas (2017) and can explain why there are issues of environmental damage and social conflict linked to natural resources in those countries. The present study contributes to the literature by presenting evidence on the effects of corruption on growth, human development and natural resources sector in Latin American and Nordic countries. It is the first study on economics of corruption which directly compares Latin American and Nordic countries. This is relevant because there are important differences between both regions since Latin American countries tend to suffer from widespread corruption, while the Nordic ones have a high level of transparency. It is also the first in using a Bayesian panel VAR approach in order to evaluate the effects of corruption.
      Citation: Journal of Economic Studies
      PubDate: 2021-03-09
      DOI: 10.1108/JES-05-2020-0199
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2021)
       
  • Terrorism, innovation and venture capital

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      Authors: Moshfique Uddin , Ashraful Alam , Hassan Yazdifar , Moade Shubita
      Abstract: This paper aims to examine the relationship between terrorism and innovation and the moderating role of venture capital. The paper has used panel data from 140 countries covering the period of 2007–2016 and has analysed the data by using generalised method of moments instrumental variables (GMM-IV) estimation method to control for unobserved endogeneity among the variables. The authors find that terrorism has negative impact on innovation. Interesting results emerge when we separated the developed countries from others. The results show that the impact of terrorism on innovation is lower in developed countries. This is due to the fact that strong institutional settings in developed countries make the investors confident by providing support and incentives. Better institutional settings in developed countries also help to reduce uncertainty, which maximise innovation and minimise terrorism risk. The authors also find that venture capital positively moderates the terrorism and innovation relationship. This implies that by providing sufficient fund for technological development, venture capital may help to reduce terrorism risk. These results may guide the policy makers to find a business solution instead of lengthy political solution to mitigate terrorism risk in emerging countries. Overall, this paper will provide the basis for improving the counter-terrorism approaches from an innovation perspective. The paper has used terrorism and venture capital data from 140 countries and finds interesting results that may help the policy makers to reduce the effect and intensity of terrorism in emerging countries.
      Citation: Journal of Economic Studies
      PubDate: 2021-02-23
      DOI: 10.1108/JES-08-2020-0404
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2021)
       
  • Self-employment and economic growth in developing countries: is more
           self-employment better'

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      Authors: Sridevi Yerrabati
      Abstract: The study aims to examine the non-linear relationship between self-employment and economic growth (growth) in the context of developing countries. Data from a sample of 83 developing countries covering a period 2002–2015 is used. The empirical analysis is based on the dynamic panel data estimation, and the results are estimated using the two-step system GMM technique. Non-linearity between self-employment and growth is validated using Sasabuchi (1980) and Lind and Mehlum (2010) (SLM) test. The empirical analysis suggests a non-linear and a U-shaped relationship between self-employment and growth, confirmed by the SLM test. The threshold levels for total self-employment, female self-employment and male self-employment are 57.49%, 58.86 and 55.81%. The findings are also robust to alternate estimation technique and alternate measure of the dependent variable. Policy implications of the findings include the need for policies that foster and channel self-employment properly as the higher level of self-employment is found to benefit growth. This study is the first attempt to examine the empirical relationship between self-employment and growth. As such, it makes a novel contribution to the extant literature on the relationship between the two variables.
      Citation: Journal of Economic Studies
      PubDate: 2021-02-22
      DOI: 10.1108/JES-08-2020-0419
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2021)
       
  • Measuring contagion during COVID-19 through volatility spillovers of BRIC
           countries using diagonal BEKK approach

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      Authors: Kunjana Malik , Sakshi Sharma , Manmeet Kaur
      Abstract: The outbreak of the coronavirus disease 2019 (COVID-19) pandemic is an unprecedented shock to the BRICS (Brazil, Russia, India, China, South Africa) economy and their financial markets have plummeted significantly due to it. This paper adds to the recent literature on contagion due to spillover by uniquely examining the presence of pairwise contagion or volatility transmissions in stock markets returns of India, Brazil, Russia, China and USA prior to and during COVID-19 pandemic period. In this study, the generalised autoregressive conditional heteroskedasticity (GARCH) by Bollerslev (1986) under diagonal parameterization is used to estimate multivariate GARCH framework also known as BEKK (Baba EngleKraft and Kroner) model on stock market returns of BRIC nations and the US. The empirical results show that the model captures the volatility spillovers and display statistical significance for own past mean and volatility with both short- and long-run persistence effects. Own volatility spillovers (Heatwave phenomenon) have been found to be highest for the US, China and Brazil compared to Russia and India. The coefficients indicate persistence of volatility for each country in terms of its own past errors. The highest and long-term spillover effect is found between US and Russia. The results recommend that Russia is least vulnerable to outside shocks. Finally after examining the pairwise results, it is suggested that the BRIC countries stock indices have exhibited volatility spillover due to the COVID-19 pandemic. The study may be extended to include other emerging market economies under a dynamic framework. Researchers and policymakers may draw useful insights on cross-market interdependencies regarding the spillovers in BRIC countries' stock markets. It also helps design international portfolio diversification strategies and in constructing optimal portfolios during COVID and in a post-COVID world. COVID-19 has been an improbable event in the history of the world which can have a large impact on the financial economies across the emerging countries. This event can be deemed to be informative enough to measure the co-movements of the equity markets amongst cross-country return series, which has not been investigated so far for BRIC nations.
      Citation: Journal of Economic Studies
      PubDate: 2021-02-19
      DOI: 10.1108/JES-05-2020-0246
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2021)
       
  • Stock markets' reaction to COVID-19: evidence from the six WHO regions

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      Authors: Anas Ali Al-Qudah , Asma Houcine
      Abstract: This study investigates the effects of the COVID-19 outbreak on daily stock returns for the six major affected WHO Regions, namely: Africa, Americas, Eastern Mediterranean, Europe, South-East Asia and Western Pacific. This study uses an event study method and panel-data regression models to examine the effect of the daily increase in the number of COVID-19 confirmed cases on daily stock returns from 1 March to 1 August 2020 for the leading stock market in major affected countries in the WHO regions. The results reveal an adverse impact of the daily increasing number of COVID-19 cases on stock returns and stock markets fell quickly in response to the pandemic. The findings also suggest that negative market reaction was strong during the early stage of the outbreak between the 26th and 35th days after the initial confirmed cases. We further find that stock markets in the Western Pacific region experienced more negative abnormal returns as compared to other regions. The results also confirm that feelings of fear among investors turned out to be a mediator and a transmission channel for the effect of COVID-19 outbreak on the stock markets. This study contributes to financial literature in two ways. First, we contribute to existing literature that has examined the effect of various catastrophes and crises on the stock markets Second, we contribute to the recent emerging literature that examines the impact of COVID-19 on financial markets. The study may have implications for policymakers to deal with this outbreak without triggering uncertainty in stock markets and reassure investors' confidence. The study may also be of interest to investors, managers, financial analysts by revealing how the stock markets quickly respond to outbreaks. This study is the first study to examine the impact of the COVID-19 outbreak on the leading stock markets of the WHO regions.
      Citation: Journal of Economic Studies
      PubDate: 2021-02-18
      DOI: 10.1108/JES-09-2020-0477
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2021)
       
  • Inefficiency patterns in family-owned banks in Bangladesh

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      Authors: Mette Asmild , Dorte Kronborg , Tasmina Mahbub , Kent Matthews
      Abstract: Multi-directional efficiency analysis (MEA) is an alternative methodology to data envelopment analysis (DEA) that investigates the improvement potentials in each input and output dimension and identifies a benchmark proportional to these potential improvements. This results in a more nuanced picture of the sources of the inefficiency providing opportunities for additional conclusions about which variables the inefficiency is mainly located on. MEA provides insights into not only the level of the inefficiency but also the patterns within the inefficiency, i.e. its sources and location. This paper applies this methodology to Bangladeshi banks to understand the differences in the inefficiency patterns between different subgroups. This paper analyses the difference in the pattern of inefficiency between the older family-dominated banks and the newer non-family-owned banks in Bangladesh using the recently developed MEAs technology, which enables analysis of patterns within inefficiencies rather than only levels of (in)efficiency. The empirical results show that whilst there are few significant differences in the levels of variable-specific efficiency scores between the two subgroups, there are clearer differences on the inefficiency contributions from particular outputs in most of the study period and also on most variables in the time window of 2007–2009. This finding provides clues to differences in business models and management practice between the two types of banks in Bangladesh. The empirical results show that whilst there are few significant differences in the levels of variable-specific efficiency scores between the two subgroups (older family-dominated banks and the newer non-family-owned banks), there are clearer differences on the inefficiency contributions from particular outputs in most of the study period and also on most variables in the time window of 2007–2009, during the Global Financial Crisis (GFCs). This finding provides clues to differences in business models and management practice between the two types of banks in Bangladesh. DEA is a conventional tool for benchmarking in management science. However, conventional benchmarking exercises based on DEA do not reveal significant differences in the sources of inefficiency that show differences in business models. While DEA remains the most utilized technique in the efficiency literature, we think that a more flexible and deeper analysis requires something like MEA. The contribution is twofold. First, examination of performances of family-owned firms is a well-established but analysis of performances of family-dominated banks is relative scarce. Secondly, isolating the sources of inefficiency which differs between types of banks even if there is no difference in inefficiency levels is absolutely new for a complete data set of conventional banks in Bangladesh. It turns out that there are few (significant) differences between the groups in terms of the inefficiency levels, whereas clear patterns emerge in terms of differences in inefficiency contributions between family-dominated and non-family-owned banks, during the Global Financial Crisis
      Citation: Journal of Economic Studies
      PubDate: 2021-02-16
      DOI: 10.1108/JES-06-2020-0286
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2021)
       
  • The wage premium and market structure: theory and empirical evidence from
           Chilean manufacturers

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      Authors: Ruohan Wu , Mario Javier Miranda , Meng-Fen Yen
      Abstract: This paper aims to examine how the “wage premium,” the percentage by which wages earned by skilled workers exceed those of unskilled workers, varies across industries characterized by different levels of competitiveness. A theoretical model employing constant elasticity of substitution (CES) utility function and constant returns to scale production function is developed and analyzed to derive the effects of industry competitiveness on the wage premium. Econometric methods are applied to Chilean manufacturing data to test implications of theoretical model. Once the relative factor endowment is being controlled, market competition significantly reduces the wage premium. More specifically, given with the same relative factor endowment, the wage premium is significantly higher under oligopolistic competition than under monopolistic competition. Empirical evidence from Chilean manufacturers supports our theoretical conclusions. During economic development, the reallocation of production factors from unskilled labor-intensive to skilled labor-intensive industries raises the wage premiums received by skilled workers. Besides, skilled workers will earn higher wages by working in more highly concentrated industries instead of more competitive industries. This needs to be considered by government policymakers who must balance promotion of technical change with prevention of extreme the income inequality. This paper examines how market structure affects wage premiums, providing new insights into a well-established literature that largely maintains that wage premiums are primarily a function of relative factor endowments or international trade.
      Citation: Journal of Economic Studies
      PubDate: 2021-02-16
      DOI: 10.1108/JES-07-2020-0336
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2021)
       
  • Stock market implications of Fed's balance sheet size
         This is an Open Access Article Open Access Article

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      Authors: Asif M. Ruman
      Abstract: Considering the relationship between the central bank balance sheet and unconventional monetary policy after the 2008 financial crisis, it is crucial to see how the unconventional monetary policy, given near-zero interest rates, affects future stock market performance. This paper analyzes the impact of the Fed's balance sheet size on stock market performance. To analyze the Fed's balance sheet size's long-term stock market implications, this paper uses the asset pricing framework of market return predictability such as Ordinary least squares (OLS) and Generalized method of moments (GMM) analysis. Findings in this paper suggest that the Fed's balance sheet size, deflated by asset market wealth, presents evidence of return predictability during 1926–2015 that is robust against standard controls. These results can be explained through the redistribution of risk and the wealth channels of monetary policy transmission. The changing balance sheet size of a central bank (1) affects systemic risk, yields and expectations and (2) signals the future direction of monetary policy and thus economic outlook. The main implication of these findings is that policymakers should avoid a severe imbalance between a central bank's balance sheet size and assets market wealth. The empirical evidence in this paper documents a century-old relation between the Fed's balance sheet size and US stock market return using the Fed's balance sheet data for the last 100 years and stock market returns from the Center for research in security prices (CRSP) database.
      Citation: Journal of Economic Studies
      PubDate: 2021-02-12
      DOI: 10.1108/JES-09-2020-0437
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2021)
       
  • A new method to solve fuzzy stochastic finance problem

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      Authors: Jayanta Kumar Dash , Sumitra Panda , Golak Bihari Panda
      Abstract: The authors discuss the value of portfolio and Black–Scholes (B–S)-option pricing model in fuzzy environment. The B–S option pricing model (OPM) is an important role of an OPM in finance. Here, every decision is taken under uncertainty. Due to randomness or vagueness, these uncertainties may be random or fuzzy or both. As the drift µ, the degree of volatility s, interest rate r, strike price k and other parameters of the value of the portfolio V(t), market price S_0 (t) and call option C(t) are not known exactly, so they are treated as positive fuzzy number. Partial expectation of fuzzy log normal distribution is derived. Also the value of portfolio at any time t and the B–S OPM in fuzzy environment are derived. A numerical example of B–S OPM is illustrated. First, the authors are studying some various paper and some stochastic books. This is a new technique.
      Citation: Journal of Economic Studies
      PubDate: 2021-02-11
      DOI: 10.1108/JES-10-2020-0521
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2021)
       
  • Evaluating survey-based forecasts of interest rates and macroeconomic
           variables

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      Authors: Athanasios Fassas , Stephanos Papadamou , Dimitrios Kenourgios
      Abstract: This study examines the forecasting performance of the professional analysts participating in the Blue Chip Economic Indicators Survey using an alternative methodological research design. This work employs two methodologies, namely a panel specification, with the cross-section being the forecast horizon (from 1-month to 18-months ahead forecasts) and the time period being the time that the forecast was made and a quantile regression technique, which evaluates the hidden nonmonotonic relations between the forecasts and the target variables being forecasted. The empirical findings of this study show that survey-based forecasts of certain key macroeconomic variables are generally biased but still efficient predictors of target variables. In particular, we find that survey participants are more efficient in predicting long-term interest rates in the long-run and short-term interest rates in the short run, while the predictability of medium-term interest rates is the least accurate. Finally, our empirical analysis suggests that currency fluctuations are very hard to predict in the short run, while we show that survey-based forecasts are among the most accurate predictors of GDP deflator and growth. Evaluating the accuracy of economic forecasts is critical since market participants and policymakers utilize such data (as one of several inputs) for making investment, financial and policy decisions. Therefore, the quality of a decision depends, in part, on the quality of the forecast. Our empirical results should have immediate implications for asset pricing models that use interest rates and inflation forecasts as variables. The present study marks a methodological departure from existing empirical attempts as it proposes a simpler yet powerful approach in order to investigate the efficiency of professional forecasts. The employed empirical specifications enable market participants to investigate the information content of forecasts over different forecast horizons and the temporal evolution of forecast quality.
      Citation: Journal of Economic Studies
      PubDate: 2021-01-21
      DOI: 10.1108/JES-05-2020-0237
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2021)
       
  • Culture and income across countries: evidence from family ties

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      Authors: Sokchea Lim , Simran K. Kahai , Channary Khun
      Abstract: The purpose of the paper is to examine how much difference in income can be explained by familial culture that persists in different societies. We employ a two-step methodology to evaluate the impact of familial culture on income across countries. In the first step, we construct the macro measures of familial culture from micro survey data. In the second step, the growth model is estimated. First-step micro regression results show that family is more important to female, richer, highly educated, unemployed and married individuals. Male, poorer, less educated and unemployed individuals are more likely to respect and love parents unconditionally. The same group is also more likely to think that parents must do the best for their kids. Finally, the macro results show that the strength of national familial ties explains significant differences in income across countries. We show that countries with weak family ties are richer than those with strong family ties. These results are useful for policymakers who design public policies that accommodate the type of familial culture that persists in their society. We construct the macro measures of familial culture from the micro survey data. The paper adds to the literature on the effect of culture on income at the macro level.
      Citation: Journal of Economic Studies
      PubDate: 2021-01-21
      DOI: 10.1108/JES-06-2020-0276
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2021)
       
  • Output hysteresis in the US: new evidence from a time-varying Verdoorn's
           law

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      Authors: Pedro Clavijo-Cortes
      Abstract: This study aims to contribute to the current and well-documented phenomenon of hysteresis in the US economy after the Great Financial Recession. Compelling reasons lead me to believe that Verdoorn's law can be used to explain this phenomenon by relating hysteresis to a fall in the size of returns to scale of the whole economy. Verdoorn's law is estimated using a time-varying regression model that employs Bayesian methods to examine the evolution of the Verdoorn coefficient. The investigation uses a bivariate time-varying model to estimate long-run growth rates of output and productivity while controlling for potential endogeneity problems. The study finds substantial variation in the Verdoorn coefficient across time as well as a significant fall of it in the onset of the Great Financial Recession, which confirms the presence of hysteresis in the US economy. Additionally, it also finds a fall in the size of productivity shocks, and in the long-run growth rates of output and productivity according to previous studies. The empirical investigation uses, novel to the literature on Verdoorn's law to date, a bivariate time-varying regression model with stochastic volatility. It also employs quarterly productivity data for a considerably long period, which to my knowledge, has not been used by previous works. Most importantly, this approach contemplates positive hysteresis––typically neglected––which provides a less bleak panorama.
      Citation: Journal of Economic Studies
      PubDate: 2021-01-20
      DOI: 10.1108/JES-06-2020-0263
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2021)
       
  • The complex relationship between inflation and equity returns

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      Authors: Jinan Liu , Apostolos Serletis
      Abstract: To investigate the complex relationship between inflation, inflation uncertainty and equity returns. This paper uses a bivariate VARMA, GARCH-in-mean, asymmetric BEKK model to investigate the relationship between inflation, inflation uncertainty and equity returns. Using monthly inflation and equity returns data for the G7 and EM7 economies, we find that the effects of inflation and inflation uncertainty on equity returns vary across countries. The mixed evidence we find potentially reflects the changing dynamics, policy regimes, economic shocks and country-specific factors (such as differences in the financing patterns of enterprises and the legal and financial environments) across the G7 and EM7 countries. We contribute to the empirical literature in the following ways. First, we rely on a wide sample of countries, including both developed and emerging economies. Second, we extend previous research by estimating a GARCH-in-mean model of monthly equity returns in which both realized returns and their conditional volatility are allowed to vary with inflation. Previous articles that studied the relationship between inflation and stock market returns generally sought time-invariant effects of inflation on stock returns. The paper helps to reconcile the divergent results of previous empirical studies and distinguish between alternative explanations of the relationship between inflation and equity returns. Our study provides an improved comprehension of the ambiguous relationship between inflation, inflation uncertainty and equity returns under various central bank mandates and different levels of central bank independence. The mixed empirical evidence across countries we present provides insights for the macroeconomic models that consider the relationship between uncertainty and macroeconomic performance as a fundamental building block. Therefore, our empirical study calls for further work on the relationship between inflation, inflation uncertainty and equity returns.
      Citation: Journal of Economic Studies
      PubDate: 2021-01-14
      DOI: 10.1108/JES-10-2020-0526
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2021)
       
  • Was trade openness with China an initial driver of cross-country human
           coronavirus infections'

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      Authors: Gregory N. Price , Doreen P. Adu
      Abstract: This paper aims to consider if an initial driver of the cross-country global coronavirus pandemic was trade openness with China. The authors estimate simple, seemingly unrelated and zero-inflated count data specifications of a gravity model of trade between China and its trading partners, where the number of human coronavirus infections in a country is a function of the number of distinct good/services exported and imported from China. Parameter estimates reveal that the number of early cross-country human coronavirus infections increased with respect to trade openness with China, as measured by the number of distinct Chinese exported and imported goods/services, and can account for approximately 24% of early infections among China's trading partners. The findings suggest that one of the costs of trade openness and globalization is that they can be a driver of cross-country human disease pandemics. This inquiry constitutes a first approach at embedding the possible disease pandemic costs of free trade, trade openness and globalization within a trade gravity model.
      Citation: Journal of Economic Studies
      PubDate: 2021-01-13
      DOI: 10.1108/JES-10-2020-0497
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2021)
       
  • The link between financial stress index and economic activity: prominent
           Granger causalities across frequencies in Luxembourg

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      Authors: Pejman Bahramian , Andisheh Saliminezhad , Şule Aker
      Abstract: In spite of the certain risk imposed by financial stress on the real economy, the relationship between financial stress and economic activity is complicated and underresearched, meaning that important gaps still remain in the authors’ understanding of this critical relationship. Therefore, the current study aims to answer the significant question regarding whether a stressful financial sector has predictive power on the real sector and vice versa. Hence, the study examines the causal interrelationship between financial stress index (FSI) and economic activity in Luxembourg as a sample country. In this study, accompanying the time domain Granger causality framework of Hacker and Hatemi-J (2012), the authors utilize the spectral causality technique of Breitung and Candelon (2006), which is based on the study of Geweke (1982) and Hosoya (1991). This method enables the researcher to measure the degree of a particular variation in time series. Moreover, it allows considering the nonlinearities and causality cycles. The authors further apply the recent method of Farné and Montanari (2018) that is a bootstrap framework on Granger-causality spectra, which allows for disambiguation in causalities. The time-domain approach finds evidence of bidirectional causation between the variables. However, the spectral causality results indicate the causal linkages between the series are only valid under the medium-run frequency. This study’s findings emphasize covering the frequency causality to deliver a more comprehensive picture of the interrelationship between the variables. There are many studies in this area that examine the nexus between financial stress and economic activity. However, the authors believe this paper is the first study in the context of Luxemburg. The authors focus on this country since its financial sector is designated as the most important pillar for the economy. Thus, a careful and reliable examination of the relationship between the financial sector and economic activity is likely to be of considerable interest to policymakers and researchers in this field.
      Citation: Journal of Economic Studies
      PubDate: 2021-01-04
      DOI: 10.1108/JES-05-2020-0251
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2021)
       
  • Income inequality and financialization: a not so straightforward
           relationship

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      Authors: Constantinos Alexiou , Emmanouil Trachanas , Sofoklis Vogiazas
      Abstract: The authors explore the impact of financialization on income inequality for a panel of 19 OECD countries over the period 2000–2017. The authors control for the effect of banking crises, credit market regulation and globalization, among other factors. The authors use three proxies for income inequality and four proxies for financialization. The authors employ a panel fixed effects approach using Driscoll and Kraay’s (1998) nonparametric covariance matrix estimator, which produces standard errors that are robust to general forms of cross-sectional dependence. The authors provide evidence which to a great extent supports the view that the process of financialization has increased income inequality. In the disposable Gini specifications, two out of the four financialization measures are found to significantly contribute to rising inequality whilst in the specification with the market income Gini coefficient, three out of the four financialization proxies appear to adversely affect inequality. In the specification with the Gini coefficient based on manufacturing pay, the evidence is weak. Furthermore, trade unions appear to play a significant role in reducing inequality in two out of the three Gini specifications while the effect of credit market regulation is rather ambiguous. The authors’ findings suggest a positive relationship between financialization and income inequality; however, the results depend on the proxies used to measure financialization and income inequality. The authors conclude that the process of financialization in triggering income inequality is complex and merits additional research.
      Citation: Journal of Economic Studies
      PubDate: 2021-01-01
      DOI: 10.1108/JES-05-2020-0202
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2021)
       
  • Journal of Economic Studies

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