Pub Date : 2025-03-01Epub Date: 2024-12-21DOI: 10.1016/j.inteco.2024.100577
Anh H. Le
In this paper, I introduce a New Keynesian - Dynamic Stochastic General Equilibrium (NK-DSGE) model to examine the implications of CBDCs and cryptocurrency in an open economy for emerging markets. In our model, cryptocurrency is implemented as a form of deposit in banks where bankers can also receive deposits from abroad. Lastly, CBDCs are introduced as a payment and saving instrument. I find that cryptocurrency has a crucial role in banking sectors and a significant effect on the dynamic of foreign debt which is highly important for emerging markets. Moreover, I uncover that CBDCs can generate welfare gains but the gain varies with their designs.
{"title":"Central bank digital currency and cryptocurrency in emerging markets","authors":"Anh H. Le","doi":"10.1016/j.inteco.2024.100577","DOIUrl":"10.1016/j.inteco.2024.100577","url":null,"abstract":"<div><div>In this paper, I introduce a New Keynesian - Dynamic Stochastic General Equilibrium (NK-DSGE) model to examine the implications of CBDCs and cryptocurrency in an open economy for emerging markets. In our model, cryptocurrency is implemented as a form of deposit in banks where bankers can also receive deposits from abroad. Lastly, CBDCs are introduced as a payment and saving instrument. I find that cryptocurrency has a crucial role in banking sectors and a significant effect on the dynamic of foreign debt which is highly important for emerging markets. Moreover, I uncover that CBDCs can generate welfare gains but the gain varies with their designs.</div></div>","PeriodicalId":13794,"journal":{"name":"International Economics","volume":"181 ","pages":"Article 100577"},"PeriodicalIF":0.0,"publicationDate":"2025-03-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143147758","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2025-03-01Epub Date: 2025-02-01DOI: 10.1016/j.inteco.2025.100578
Le Thanh Ha
The literature has underscored the significance of investor sentiment in understanding excess stock returns and volatility. However, scholars have paid less attention to measuring investor sentiment related to stock markets and analyzing its impacts on the macroeconomy in Vietnam. Our article employs a time-varying parameter structural vector autoregression (TVP-VAR) with stochastic volatility (TVP-VAR-SV) to examine the connectedness of three key variables from January 1, 2017, to November 25, 2023, and to analyze the relationship between investor sentiment and the exchange rate. Following a positive shock in investment sentiment, the exchange rates of USD/VND and GBP/VND exhibited similar responses, showing a negative movement in the 1-period ahead before turning positive in the 3-period ahead. Conversely, EUR/VND and JPY/VND displayed positive movements both in the 1-period and 3-period ahead in response to the shock. Meanwhile, CNY/VND, reacted negatively overall to a positive shock in investment sentiment was negative. Our results have important policy implications for both investors and policymakers. The study also highlights how spillover effects among various indicators and their interconnections can be leveraged to stabilize financial and macroeconomic markets.
{"title":"Measuring the contemporal and lead connectedness level between investor sentiment and exchange rate dynamics in Vietnam: Novel findings from TVP-VAR-SV technique","authors":"Le Thanh Ha","doi":"10.1016/j.inteco.2025.100578","DOIUrl":"10.1016/j.inteco.2025.100578","url":null,"abstract":"<div><div>The literature has underscored the significance of investor sentiment in understanding excess stock returns and volatility. However, scholars have paid less attention to measuring investor sentiment related to stock markets and analyzing its impacts on the macroeconomy in Vietnam. Our article employs a time-varying parameter structural vector autoregression (TVP-VAR) with stochastic volatility (TVP-VAR-SV) to examine the connectedness of three key variables from January 1, 2017, to November 25, 2023, and to analyze the relationship between investor sentiment and the exchange rate. Following a positive shock in investment sentiment, the exchange rates of USD/VND and GBP/VND exhibited similar responses, showing a negative movement in the 1-period ahead before turning positive in the 3-period ahead. Conversely, EUR/VND and JPY/VND displayed positive movements both in the 1-period and 3-period ahead in response to the shock. Meanwhile, CNY/VND, reacted negatively overall to a positive shock in investment sentiment was negative. Our results have important policy implications for both investors and policymakers. The study also highlights how spillover effects among various indicators and their interconnections can be leveraged to stabilize financial and macroeconomic markets.</div></div>","PeriodicalId":13794,"journal":{"name":"International Economics","volume":"181 ","pages":"Article 100578"},"PeriodicalIF":0.0,"publicationDate":"2025-03-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143379448","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2025-03-01Epub Date: 2025-02-01DOI: 10.1016/j.inteco.2025.100579
Fang Dong , William Marquis
The objective of this study is to examine the existence of monetary autonomy within the framework of the macroeconomic trilemma hypothesis. We estimate panel data models with fixed effects, random effects, and fixed effects with cross-sectional dependence to assess monetary autonomy in 36 countries from January 1991 to December 2023. The dependent variable captures changes in policy interest rates in these peripheral countries, while the independent variables include changes in the U.S. policy interest rate, nominal exchange rate regimes (flexible vs fixed or float, soft peg, and peg), capital mobility regimes (capital controls vs free capital mobility or closed, mid-open, and open), foreign exchange reserves relative to nominal GDP, and indicators for currency/financial crises and Covid-19, among others. Using monthly data from various sources, we find no evidence of monetary autonomy under a fixed exchange rate with free capital mobility in both the “corner solution” and “middle ground” models, aligning with the macroeconomic trilemma hypothesis. However, we do find evidence of monetary autonomy in the middle ground case (soft peg with mid-open capital market) and that further evidence that foreign exchange reserves can mitigate the trilemma hypothesis.
{"title":"An investigation of monetary autonomy under corner solution and middle ground: A panel data analysis","authors":"Fang Dong , William Marquis","doi":"10.1016/j.inteco.2025.100579","DOIUrl":"10.1016/j.inteco.2025.100579","url":null,"abstract":"<div><div>The objective of this study is to examine the existence of monetary autonomy within the framework of the macroeconomic trilemma hypothesis. We estimate panel data models with fixed effects, random effects, and fixed effects with cross-sectional dependence to assess monetary autonomy in 36 countries from January 1991 to December 2023. The dependent variable captures changes in policy interest rates in these peripheral countries, while the independent variables include changes in the U.S. policy interest rate, nominal exchange rate regimes (flexible vs fixed or float, soft peg, and peg), capital mobility regimes (capital controls vs free capital mobility or closed, mid-open, and open), foreign exchange reserves relative to nominal GDP, and indicators for currency/financial crises and Covid-19, among others. Using monthly data from various sources, we find no evidence of monetary autonomy under a fixed exchange rate with free capital mobility in both the “corner solution” and “middle ground” models, aligning with the macroeconomic trilemma hypothesis. However, we do find evidence of monetary autonomy in the middle ground case (soft peg with mid-open capital market) and that further evidence that foreign exchange reserves can mitigate the trilemma hypothesis.</div></div>","PeriodicalId":13794,"journal":{"name":"International Economics","volume":"181 ","pages":"Article 100579"},"PeriodicalIF":0.0,"publicationDate":"2025-03-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143352340","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2025-03-01Epub Date: 2024-12-24DOI: 10.1016/j.inteco.2024.100576
Hugo Morão
This paper investigates the dynamic relationship between fuel price fluctuations and inflation expectations in the Euro Area from 2005 to 2022, employing a Structural Vector Autoregression (SVAR) model to analyze the impact of these price changes on key macroeconomic variables. Focusing on the context of the Russian invasion of Ukraine, this research reveals that fuel price variations significantly influence both short-term and long-term inflation expectations, with the most pronounced effects observed during the initial month of the conflict. However, after March 2022, the impact of fuel price fluctuations on durable and non-durable goods prices diminishes in intensity. These fuel price changes cease to be the primary driver of inflation in the subsequent months, suggesting other factors gain prominence in influencing price levels across the Euro Area. The findings demonstrate that fuel price changes also have economic implications for Eurosystem financial dynamics.
{"title":"Fuel price surges and rising inflation expectations in the Euro Area","authors":"Hugo Morão","doi":"10.1016/j.inteco.2024.100576","DOIUrl":"10.1016/j.inteco.2024.100576","url":null,"abstract":"<div><div>This paper investigates the dynamic relationship between fuel price fluctuations and inflation expectations in the Euro Area from 2005 to 2022, employing a Structural Vector Autoregression (SVAR) model to analyze the impact of these price changes on key macroeconomic variables. Focusing on the context of the Russian invasion of Ukraine, this research reveals that fuel price variations significantly influence both short-term and long-term inflation expectations, with the most pronounced effects observed during the initial month of the conflict. However, after March 2022, the impact of fuel price fluctuations on durable and non-durable goods prices diminishes in intensity. These fuel price changes cease to be the primary driver of inflation in the subsequent months, suggesting other factors gain prominence in influencing price levels across the Euro Area. The findings demonstrate that fuel price changes also have economic implications for Eurosystem financial dynamics.</div></div>","PeriodicalId":13794,"journal":{"name":"International Economics","volume":"181 ","pages":"Article 100576"},"PeriodicalIF":0.0,"publicationDate":"2025-03-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143147759","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2025-03-01Epub Date: 2024-12-04DOI: 10.1016/j.inteco.2024.100570
Walid Mensi , Remzi Gök , Eray Gemici , Sang Hoon Kang
We apply the qunatile vector autoregression (QVAR) connectedness and frequency causality methods to investigate tail risk contagion, quantile dependency, and causality linkages among the spot prices of equity, precious metals, and energy commodity markets between 2002 and 2024. Our findings indicate that the average amount of unexpected losses for stock markets is lower than that for other markets. Furthermore, our analysis of tail risk spillovers shows that downside risks are primarily driven by the contributions of others, with the most significant impact occurring when the tail risk is at its lowest. The total downside risks associated with connectedness are greater for lower quantiles and stock markets typically serve as the primary transmitters of shocks across all quantiles. During financial crises, heterogeneous and event-dependent risk spillovers strengthen, but not during pandemics or geopolitical incidents.
{"title":"Tail risk contagion and connectedness between crude oil, natural gas, heating oil, precious metals, and international stock markets","authors":"Walid Mensi , Remzi Gök , Eray Gemici , Sang Hoon Kang","doi":"10.1016/j.inteco.2024.100570","DOIUrl":"10.1016/j.inteco.2024.100570","url":null,"abstract":"<div><div>We apply the qunatile vector autoregression (QVAR) connectedness and frequency causality methods to investigate tail risk contagion, quantile dependency, and causality linkages among the spot prices of equity, precious metals, and energy commodity markets between 2002 and 2024. Our findings indicate that the average amount of unexpected losses for stock markets is lower than that for other markets. Furthermore, our analysis of tail risk spillovers shows that downside risks are primarily driven by the contributions of others, with the most significant impact occurring when the tail risk is at its lowest. The total downside risks associated with connectedness are greater for lower quantiles and stock markets typically serve as the primary transmitters of shocks across all quantiles. During financial crises, heterogeneous and event-dependent risk spillovers strengthen, but not during pandemics or geopolitical incidents.</div></div>","PeriodicalId":13794,"journal":{"name":"International Economics","volume":"181 ","pages":"Article 100570"},"PeriodicalIF":0.0,"publicationDate":"2025-03-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143147807","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2025-03-01Epub Date: 2024-11-28DOI: 10.1016/j.inteco.2024.100571
Marina Albanese , Guglielmo Maria Caporale , Ida Colella , Nicola Spagnolo
This paper examines the impact of transition and physical climate risk on stock markets using, for the first time in this context, the annual Climate Change Performance Index (CCPI) calculated by Germanwatch as well as its components (in addition to a wide range of other indices) for 48 countries from 2007 to 2023. Specifically, a balanced panel VAR model is estimated to obtain impulse responses for the whole set of countries considered as well as for a subset including the EU-28 only; other methods such as Forecast Error Variance Decomposition and Local Projections (Jordà, 2005; 2023) are then applied for robustness checks. The results suggest a positive impact of transition risk on stock returns and a negative one of physical risk, especially in the short term. Further, while physical risk appears to have an immediate impact, transition risk is shown to affect stock markets also over a longer time horizon. Finally, national climate policies seem to be more effective when implemented within a supranational framework as in the case of the EU-28.
{"title":"The effects of physical and transition climate risk on stock markets: Some multi-Country evidence","authors":"Marina Albanese , Guglielmo Maria Caporale , Ida Colella , Nicola Spagnolo","doi":"10.1016/j.inteco.2024.100571","DOIUrl":"10.1016/j.inteco.2024.100571","url":null,"abstract":"<div><div>This paper examines the impact of transition and physical climate risk on stock markets using, for the first time in this context, the annual Climate Change Performance Index (CCPI) calculated by Germanwatch as well as its components (in addition to a wide range of other indices) for 48 countries from 2007 to 2023. Specifically, a balanced panel VAR model is estimated to obtain impulse responses for the whole set of countries considered as well as for a subset including the EU-28 only; other methods such as Forecast Error Variance Decomposition and Local Projections (Jordà, 2005; 2023) are then applied for robustness checks. The results suggest a positive impact of transition risk on stock returns and a negative one of physical risk, especially in the short term. Further, while physical risk appears to have an immediate impact, transition risk is shown to affect stock markets also over a longer time horizon. Finally, national climate policies seem to be more effective when implemented within a supranational framework as in the case of the EU-28.</div></div>","PeriodicalId":13794,"journal":{"name":"International Economics","volume":"181 ","pages":"Article 100571"},"PeriodicalIF":0.0,"publicationDate":"2025-03-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143148730","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2025-03-01Epub Date: 2024-11-23DOI: 10.1016/j.inteco.2024.100572
Lucy Q. Liu , Dan Pan , Mehdi Raissi
We study the long-term macroeconomic effects of climate change across ten Canadian provinces between 1961 and 2017. Following Kahn et al. (2021a), our econometric strategy links deviations of temperature and precipitation (weather) from their multi-decade historical rolling averages (climate) to various province-specific economic performance indicators at the aggregate and sectoral levels. We show that climate change (proxied by a series of weather shocks) has a long-lasting adverse impact on real output in various Canadian provinces and economic sectors. Adaptation reduces the income losses but cannot offset them entirely. Moreover, in contrast to most cross-country results, our within-country estimates suggest asymmetrical growth effects from precipitation and temperature anomalies. Specifically, persistently higher-than-normal precipitation is associated with lower long-term GDP growth, whereas the effect of below-than-normal precipitation is not statistically significant. As regards temperature, while extended periods of cold spells (temperature persistently below historical norms) is detrimental to growth (though less likely in the future), Canada is not benefiting from a warmer climate as often argued in the literature.
{"title":"Macroeconomic effects of climate change: Evidence from Canadian provinces","authors":"Lucy Q. Liu , Dan Pan , Mehdi Raissi","doi":"10.1016/j.inteco.2024.100572","DOIUrl":"10.1016/j.inteco.2024.100572","url":null,"abstract":"<div><div>We study the long-term macroeconomic effects of climate change across ten Canadian provinces between 1961 and 2017. Following Kahn et al. (2021a), our econometric strategy links deviations of temperature and precipitation (weather) from their multi-decade historical rolling averages (climate) to various province-specific economic performance indicators at the aggregate and sectoral levels. We show that climate change (proxied by a series of weather shocks) has a long-lasting adverse impact on real output in various Canadian provinces and economic sectors. Adaptation reduces the income losses but cannot offset them entirely. Moreover, in contrast to most cross-country results, our within-country estimates suggest asymmetrical growth effects from precipitation and temperature anomalies. Specifically, persistently higher-than-normal precipitation is associated with lower long-term GDP growth, whereas the effect of below-than-normal precipitation is not statistically significant. As regards temperature, while extended periods of cold spells (temperature persistently below historical norms) is detrimental to growth (though less likely in the future), Canada is not benefiting from a warmer climate as often argued in the literature.</div></div>","PeriodicalId":13794,"journal":{"name":"International Economics","volume":"181 ","pages":"Article 100572"},"PeriodicalIF":0.0,"publicationDate":"2025-03-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143147391","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2025-03-01Epub Date: 2024-12-05DOI: 10.1016/j.inteco.2024.100574
Frederik Stender, Tim Vogel
While preferential trade agreements (PTAs) cover an increasing range of policy areas, little is known about the implications of this new emphasis on interactions with other trade-related policies. We approach this gap by examining the effectiveness of bilateral aid for trade (AfT) in promoting exports for recipient countries within deep North–South PTA relations. Using a structural gravity model for bilateral panel data of 29 OECD DAC countries and 144 developing countries from 2002 to 2015, we find that the marginal effect of AfT decreases as PTA policy areas expand. Further investigation of the underlying mechanisms suggests that the observed trade-off between PTA depth and AfT effectiveness may be due to compliance with the non-tariff provisions contained in deep PTAs. We find two lines of reasoning plausible. First, compliance efforts appear to consume large fractions of AfT, reducing its availability for potentially more effective projects. Second, since we also observe heterogeneity in interactions across donors, AfT provided by high-income PTA partners could well be used to redirect exports to third countries with comparatively fewer bilateral obligations. Provided that a core focus of AfT remains on strengthening international trade relations, including between donors and recipients, donor countries should therefore carefully weigh compliance costs to developing countries against the non-trade benefits of common deep PTAs, and accurately identify financial and technical assistance needs with their PTA partners.
{"title":"What role for aid for trade in (deep) PTA relations? Empirical evidence from gravity model estimations","authors":"Frederik Stender, Tim Vogel","doi":"10.1016/j.inteco.2024.100574","DOIUrl":"10.1016/j.inteco.2024.100574","url":null,"abstract":"<div><div>While preferential trade agreements (PTAs) cover an increasing range of policy areas, little is known about the implications of this new emphasis on interactions with other trade-related policies. We approach this gap by examining the effectiveness of bilateral aid for trade (AfT) in promoting exports for recipient countries within deep North–South PTA relations. Using a structural gravity model for bilateral panel data of 29 OECD DAC countries and 144 developing countries from 2002 to 2015, we find that the marginal effect of AfT decreases as PTA policy areas expand. Further investigation of the underlying mechanisms suggests that the observed trade-off between PTA depth and AfT effectiveness may be due to compliance with the non-tariff provisions contained in deep PTAs. We find two lines of reasoning plausible. First, compliance efforts appear to consume large fractions of AfT, reducing its availability for potentially more effective projects. Second, since we also observe heterogeneity in interactions across donors, AfT provided by high-income PTA partners could well be used to redirect exports to third countries with comparatively fewer bilateral obligations. Provided that a core focus of AfT remains on strengthening international trade relations, including between donors and recipients, donor countries should therefore carefully weigh compliance costs to developing countries against the non-trade benefits of common deep PTAs, and accurately identify financial and technical assistance needs with their PTA partners.</div></div>","PeriodicalId":13794,"journal":{"name":"International Economics","volume":"181 ","pages":"Article 100574"},"PeriodicalIF":0.0,"publicationDate":"2025-03-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143148731","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2025-03-01Epub Date: 2024-10-31DOI: 10.1016/j.inteco.2024.100562
Cheng Zhou
This study investigates the impact of the Belt and Road Initiative (BRI) on consumption risk sharing among participating countries. Utilizing a difference-in-differences model within the context of international consumption risk sharing, we analyze data from 2002 to 2022 for 64 BRI countries. Our empirical findings indicate a significant reduction in consumption risk sharing attributable to the BRI. Further subgroup analysis reveals that the BRI hinders consumption risk sharing particularly among countries along the Land Silk Road, especially those bordering China. Key contributing factors include increased tariffs, heightened foreign investment, rising employment rates, increased resident income, and a diversified range of consumer products. These factors exacerbate the BRI's adverse effects on consumption risk sharing in comparison to countries with lower levels of these variables. Our findings suggest that the Initiative has an uneven impact on the mechanisms affecting countries along its route.
{"title":"The impact of the belt and road initiative on international consumption risk sharing: A difference-in-differences analysis","authors":"Cheng Zhou","doi":"10.1016/j.inteco.2024.100562","DOIUrl":"10.1016/j.inteco.2024.100562","url":null,"abstract":"<div><div>This study investigates the impact of the Belt and Road Initiative (BRI) on consumption risk sharing among participating countries. Utilizing a difference-in-differences model within the context of international consumption risk sharing, we analyze data from 2002 to 2022 for 64 BRI countries. Our empirical findings indicate a significant reduction in consumption risk sharing attributable to the BRI. Further subgroup analysis reveals that the BRI hinders consumption risk sharing particularly among countries along the Land Silk Road, especially those bordering China. Key contributing factors include increased tariffs, heightened foreign investment, rising employment rates, increased resident income, and a diversified range of consumer products. These factors exacerbate the BRI's adverse effects on consumption risk sharing in comparison to countries with lower levels of these variables. Our findings suggest that the Initiative has an uneven impact on the mechanisms affecting countries along its route.</div></div>","PeriodicalId":13794,"journal":{"name":"International Economics","volume":"181 ","pages":"Article 100562"},"PeriodicalIF":0.0,"publicationDate":"2025-03-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142701434","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2024-12-01Epub Date: 2024-09-14DOI: 10.1016/j.inteco.2024.100551
Liotti Giorgio
This paper investigates whether higher economic freedom and/or lower government intervention in the economy contribute to poverty reduction. Connecting the percentage of people at risk of poverty with the economic freedom index elaborated by the Fraser Institute, and focusing on 12 Eurozone countries in the period between 2000 and 2019, it appears that both higher economic freedom and a lower level of government intervention in the economy (mostly lower spending in government consumption, investment and transfers and subsidies) are associated with an increase in poverty, which stands in contrast to the predictions of neoliberal economic theory.
{"title":"Economic freedom and people at risk of poverty in selected Eurozone countries","authors":"Liotti Giorgio","doi":"10.1016/j.inteco.2024.100551","DOIUrl":"10.1016/j.inteco.2024.100551","url":null,"abstract":"<div><p>This paper investigates whether higher economic freedom and/or lower government intervention in the economy contribute to poverty reduction. Connecting the percentage of people at risk of poverty with the economic freedom index elaborated by the Fraser Institute, and focusing on 12 Eurozone countries in the period between 2000 and 2019, it appears that both higher economic freedom and a lower level of government intervention in the economy (mostly lower spending in government consumption, investment and transfers and subsidies) are associated with an increase in poverty, which stands in contrast to the predictions of neoliberal economic theory.</p></div>","PeriodicalId":13794,"journal":{"name":"International Economics","volume":"180 ","pages":"Article 100551"},"PeriodicalIF":0.0,"publicationDate":"2024-12-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://www.sciencedirect.com/science/article/pii/S211070172400074X/pdfft?md5=8af2dda4054bcbb8eb39496372fd3f78&pid=1-s2.0-S211070172400074X-main.pdf","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142271026","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
扫码关注我们
求助内容：
应助结果提醒方式：
京公网安备 11010802042870号