Pub Date : 2021-07-03DOI: 10.1080/10168737.2021.1958246
Md Fourkan, Myoung-Jin Keay, Na Kyeong Lee
ABSTRACT In this study, we identify the relationship between Medicaid expansion and emergency department use based on the data from Oregon Health Program. Among the relevant studies, Taubman et al. (2014) provide the positive relationship between two objects with a rather limited approach that leads to the under-identification problem. To avoid the problem, we incorporate a copula regression analysis with an additional endogenous variable. As a result, we find that Medicaid expansion leads to a decrease in emergency department use, which is the opposite result of Taubman et al. (2014).
在本研究中，我们基于俄勒冈健康计划的数据，确定了医疗补助扩大与急诊科使用之间的关系。在相关研究中，Taubman et al.(2014)以相当有限的方法提供了两个对象之间的正相关关系，从而导致了识别不足问题。为了避免这个问题，我们结合了一个带有额外内生变量的联结回归分析。因此，我们发现医疗补助的扩大导致急诊科使用的减少，这与Taubman等人(2014)的结果相反。
{"title":"Decreased Emergency Department Use Following Medicaid Expansion: Evidence from Oregon's Health Insurance Experiment","authors":"Md Fourkan, Myoung-Jin Keay, Na Kyeong Lee","doi":"10.1080/10168737.2021.1958246","DOIUrl":"https://doi.org/10.1080/10168737.2021.1958246","url":null,"abstract":"ABSTRACT In this study, we identify the relationship between Medicaid expansion and emergency department use based on the data from Oregon Health Program. Among the relevant studies, Taubman et al. (2014) provide the positive relationship between two objects with a rather limited approach that leads to the under-identification problem. To avoid the problem, we incorporate a copula regression analysis with an additional endogenous variable. As a result, we find that Medicaid expansion leads to a decrease in emergency department use, which is the opposite result of Taubman et al. (2014).","PeriodicalId":35933,"journal":{"name":"INTERNATIONAL ECONOMIC JOURNAL","volume":"35 1","pages":"314 - 322"},"PeriodicalIF":1.1,"publicationDate":"2021-07-03","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"44428268","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 : 2021-07-03DOI: 10.1080/10168737.2021.1958896
Yang-Seung Lee
ABSTRACT Small firms can contribute to job creation and aggregate income. However, small firms are volatile and only a fraction of those can transition into larger firms, which create high-paying jobs. Entrepreneurs self-select for the transition. This study examines the pattern of entrepreneur self-selection. The main determinants of the self-selection are ability distribution of entrepreneurs and business environment, which represents skill distribution of laborers and social capital. This study predicts that firm-size distribution is truncated with the entrepreneur self-selection and aggregate income is larger when the business environment is better. This study contributes to the literature on firm-size distribution.
{"title":"Entrepreneurs, Managers, and the Firm Size Distribution","authors":"Yang-Seung Lee","doi":"10.1080/10168737.2021.1958896","DOIUrl":"https://doi.org/10.1080/10168737.2021.1958896","url":null,"abstract":"ABSTRACT Small firms can contribute to job creation and aggregate income. However, small firms are volatile and only a fraction of those can transition into larger firms, which create high-paying jobs. Entrepreneurs self-select for the transition. This study examines the pattern of entrepreneur self-selection. The main determinants of the self-selection are ability distribution of entrepreneurs and business environment, which represents skill distribution of laborers and social capital. This study predicts that firm-size distribution is truncated with the entrepreneur self-selection and aggregate income is larger when the business environment is better. This study contributes to the literature on firm-size distribution.","PeriodicalId":35933,"journal":{"name":"INTERNATIONAL ECONOMIC JOURNAL","volume":"35 1","pages":"367 - 390"},"PeriodicalIF":1.1,"publicationDate":"2021-07-03","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"47422270","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 : 2021-07-03DOI: 10.1080/10168737.2021.1952641
Kyoo il Kim, J. Park, Kyung Ho Song
We study aggregate productivity growth of the Korean manufacturing industry for the 2007–2017 period after the Great Recession. We find the nature of such growth was quite different for two measures of productivity. For labor productivity, most of growth comes from productivity changes among surviving firms while, for TFP, most of the productivity growth comes from that of new entrants. We observe interesting industry dynamics, as exiting firms contributed positively to aggregate productivity growth, which suggests that the market had gradually eliminated firms of lower productivity in this period. Using the dynamic Olley and Pakes (1996. The dynamics of productivity in the telecommunications equipment industry. Econometrica, 64, 1263–1298.) decomposition, we find that a substantial productivity growth after the Great Recession was due to market share reallocations between firms, but this between-firm contribution has reduced since the recovery. Our industry sector level analysis also demonstrates that there has been heterogeneous productivity growth patterns and components across manufacturing sectors. Finally, we speculate that the wage level also plays a role as a moderating or accelerating factor for different productivity growth paths among surviving, entering, and exiting firms.
{"title":"Aggregate Productivity Growth and Firm Dynamics in Korean Manufacturing 2007–2017","authors":"Kyoo il Kim, J. Park, Kyung Ho Song","doi":"10.1080/10168737.2021.1952641","DOIUrl":"https://doi.org/10.1080/10168737.2021.1952641","url":null,"abstract":"We study aggregate productivity growth of the Korean manufacturing industry for the 2007–2017 period after the Great Recession. We find the nature of such growth was quite different for two measures of productivity. For labor productivity, most of growth comes from productivity changes among surviving firms while, for TFP, most of the productivity growth comes from that of new entrants. We observe interesting industry dynamics, as exiting firms contributed positively to aggregate productivity growth, which suggests that the market had gradually eliminated firms of lower productivity in this period. Using the dynamic Olley and Pakes (1996. The dynamics of productivity in the telecommunications equipment industry. Econometrica, 64, 1263–1298.) decomposition, we find that a substantial productivity growth after the Great Recession was due to market share reallocations between firms, but this between-firm contribution has reduced since the recovery. Our industry sector level analysis also demonstrates that there has been heterogeneous productivity growth patterns and components across manufacturing sectors. Finally, we speculate that the wage level also plays a role as a moderating or accelerating factor for different productivity growth paths among surviving, entering, and exiting firms.","PeriodicalId":35933,"journal":{"name":"INTERNATIONAL ECONOMIC JOURNAL","volume":"35 1","pages":"289 - 313"},"PeriodicalIF":1.1,"publicationDate":"2021-07-03","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1080/10168737.2021.1952641","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"48556088","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}
In this study, we examine the location tax/subsidy competition between two countries when governments set tax or subsidy policies after firms have decided their location using a third-market model. The previous literature on tax competition with the choice of production location of firms has relied on a model in which governments set tax/subsidy policies before firms choose their production location between countries. However, if governments cannot commit to their policies in advance, the timing of decision-making changes so that governments determine their tax/subsidy rates after firms choose their location. Considering the different timings of the game, we show the following results. First, firms choose to stay in the countries in which they were originally established and governments subsidize the firms located in their countries. As a result, exporting countries fall into excessive subsidization competition, whereas firms can obtain higher profits than in the no-subsidization case. Second, when tax/subsidy authorities are tax-revenue maximizers, there are two different equilibria in tax competition in which each firm chooses to locate in different countries. Social welfare is larger when governments are tax-revenue maximizers than when they are social-welfare maximizers, whereas firms' profits are smaller when governments are tax-revenue maximizers.
{"title":"Location Tax/Subsidy Competition: When Governments Set Their Policies After Firms Choose Their Locations","authors":"Kojun Hamada, Yoshitomo Ogawa, Mitsuyoshi Yanagihara","doi":"10.1080/10168737.2021.1928265","DOIUrl":"https://doi.org/10.1080/10168737.2021.1928265","url":null,"abstract":"In this study, we examine the location tax/subsidy competition between two countries when governments set tax or subsidy policies after firms have decided their location using a third-market model. The previous literature on tax competition with the choice of production location of firms has relied on a model in which governments set tax/subsidy policies before firms choose their production location between countries. However, if governments cannot commit to their policies in advance, the timing of decision-making changes so that governments determine their tax/subsidy rates after firms choose their location. Considering the different timings of the game, we show the following results. First, firms choose to stay in the countries in which they were originally established and governments subsidize the firms located in their countries. As a result, exporting countries fall into excessive subsidization competition, whereas firms can obtain higher profits than in the no-subsidization case. Second, when tax/subsidy authorities are tax-revenue maximizers, there are two different equilibria in tax competition in which each firm chooses to locate in different countries. Social welfare is larger when governments are tax-revenue maximizers than when they are social-welfare maximizers, whereas firms' profits are smaller when governments are tax-revenue maximizers.","PeriodicalId":35933,"journal":{"name":"INTERNATIONAL ECONOMIC JOURNAL","volume":"35 1","pages":"323 - 343"},"PeriodicalIF":1.1,"publicationDate":"2021-05-12","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1080/10168737.2021.1928265","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"43594259","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 : 2021-04-03DOI: 10.1080/10168737.2021.1916774
C. Nguena, Fulbert Tchana Tchana, Albert G. Zeufack
Using a panel database of 48 Sub-Saharan African countries from 2000 to 2012 that we partially constructed, this paper analyses the structure of housing finance in Africa, its determinants, and its impact on inclusive growth. We find that market capitalization and urbanization are key positive determinants of housing finance, while a post-conflict environment is conducive to greater housing finance development. This result suggests that housing finance is driven by standard market forces of demand and supply. Besides, we find that housing finance development in Africa is not yet an effective tool for reducing economic inequality, at its current, very earlier stage. However, we show that above a given threshold, housing finance could be efficient at reducing inequality. Finally, there is a slightly positive relationship between housing finance and greater economic development in Africa. All these findings suggest that policies to boost housing finance development in Africa would be fruitful in the medium to long terms.
{"title":"Housing Finance and Inclusive Growth in Africa: Benchmarking, Determinants and Effects","authors":"C. Nguena, Fulbert Tchana Tchana, Albert G. Zeufack","doi":"10.1080/10168737.2021.1916774","DOIUrl":"https://doi.org/10.1080/10168737.2021.1916774","url":null,"abstract":"Using a panel database of 48 Sub-Saharan African countries from 2000 to 2012 that we partially constructed, this paper analyses the structure of housing finance in Africa, its determinants, and its impact on inclusive growth. We find that market capitalization and urbanization are key positive determinants of housing finance, while a post-conflict environment is conducive to greater housing finance development. This result suggests that housing finance is driven by standard market forces of demand and supply. Besides, we find that housing finance development in Africa is not yet an effective tool for reducing economic inequality, at its current, very earlier stage. However, we show that above a given threshold, housing finance could be efficient at reducing inequality. Finally, there is a slightly positive relationship between housing finance and greater economic development in Africa. All these findings suggest that policies to boost housing finance development in Africa would be fruitful in the medium to long terms.","PeriodicalId":35933,"journal":{"name":"INTERNATIONAL ECONOMIC JOURNAL","volume":"35 1","pages":"259 - 287"},"PeriodicalIF":1.1,"publicationDate":"2021-04-03","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1080/10168737.2021.1916774","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"48434630","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 : 2021-04-03DOI: 10.1080/10168737.2021.1913622
Mohsen Bahmani‐Oskooee, A. Mohammadian
Previous studies have assessed the impact of policy uncertainty on consumption and investment in G7 countries. In this study, we assess its impact on domestic output in the same countries. Furthermore, we argue that its impact could be asymmetric, implying that increased uncertainty affects domestic output at a different rate than decreased uncertainty. Unlike consumption and investment, we find the unanimous outcome in all G7 countries that increased uncertainty hurts domestic output and decreased uncertainty boosts it, though significant long-run asymmetric evidence was found only in the cases of Canada, Japan, and the U.S. Thus, any policy aimed at reducing uncertainty will be growth-enhancing.
{"title":"On the Link Between Policy Uncertainty and Domestic Production in G7 Countries: An Asymmetry Analysis","authors":"Mohsen Bahmani‐Oskooee, A. Mohammadian","doi":"10.1080/10168737.2021.1913622","DOIUrl":"https://doi.org/10.1080/10168737.2021.1913622","url":null,"abstract":"Previous studies have assessed the impact of policy uncertainty on consumption and investment in G7 countries. In this study, we assess its impact on domestic output in the same countries. Furthermore, we argue that its impact could be asymmetric, implying that increased uncertainty affects domestic output at a different rate than decreased uncertainty. Unlike consumption and investment, we find the unanimous outcome in all G7 countries that increased uncertainty hurts domestic output and decreased uncertainty boosts it, though significant long-run asymmetric evidence was found only in the cases of Canada, Japan, and the U.S. Thus, any policy aimed at reducing uncertainty will be growth-enhancing.","PeriodicalId":35933,"journal":{"name":"INTERNATIONAL ECONOMIC JOURNAL","volume":"35 1","pages":"242 - 258"},"PeriodicalIF":1.1,"publicationDate":"2021-04-03","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1080/10168737.2021.1913622","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"48809301","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 : 2021-04-03DOI: 10.1080/10168737.2021.1916773
David Silei
I consider a two-country model, in which two asymmetric firms invest in R&D to increase their competitiveness and compete over the supply of a homogeneous product, and the government grants R&D subsidies to increase welfare. In this setting I show that optimal R&D policy is affected by industrywide international competitive advantages. Similar to conventional wisdom on strategic trade policy, competitive advantages have a positive impact on the optimal amount of R&D subsidy in the case of R&D competition. With international R&D cooperation, this conclusion is reversed: subsidising the more competitive firm may have, if any, very little impact on domestic welfare.
{"title":"Allocation of the Public R&D Budget: The Impact of International Competitive Advantages and R&D Alliances","authors":"David Silei","doi":"10.1080/10168737.2021.1916773","DOIUrl":"https://doi.org/10.1080/10168737.2021.1916773","url":null,"abstract":"I consider a two-country model, in which two asymmetric firms invest in R&D to increase their competitiveness and compete over the supply of a homogeneous product, and the government grants R&D subsidies to increase welfare. In this setting I show that optimal R&D policy is affected by industrywide international competitive advantages. Similar to conventional wisdom on strategic trade policy, competitive advantages have a positive impact on the optimal amount of R&D subsidy in the case of R&D competition. With international R&D cooperation, this conclusion is reversed: subsidising the more competitive firm may have, if any, very little impact on domestic welfare.","PeriodicalId":35933,"journal":{"name":"INTERNATIONAL ECONOMIC JOURNAL","volume":"35 1","pages":"171 - 204"},"PeriodicalIF":1.1,"publicationDate":"2021-04-03","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1080/10168737.2021.1916773","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"44375256","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 : 2021-04-03DOI: 10.1080/10168737.2021.1910722
Chul‐Woo Kwon, Uk Hwang
This paper aims to analyze how the threat of offshoring can lead policymakers to adopt more lenient emissions tax policies. This study focuses on analyzing the relationship between the stringency of environmental policies and firms’ strategic offshoring decisions when a government is concerned about the negative effects of increased offshoring such as domestic job losses. The analysis is based on an archetypal proximity concentration framework that has been enhanced by considering environmental regulations and abatement technology. The results imply that the threat of offshoring is more likely to impact emissions tax rates when firms experience higher productivity, or when offshoring leads to a significant level of domestic unemployment. That is, in these cases, the threat of offshoring is more likely to make the government lower emissions tax rates more than the optimal tax rate. Although the direct impact of offshoring on environmental policies is studied in many related works, the indirect impact of offshoring-that is, the threat of offshoring- on environmental policies has been seldom studied.
{"title":"The Threat of Offshoring on the Environmental Regulation","authors":"Chul‐Woo Kwon, Uk Hwang","doi":"10.1080/10168737.2021.1910722","DOIUrl":"https://doi.org/10.1080/10168737.2021.1910722","url":null,"abstract":"This paper aims to analyze how the threat of offshoring can lead policymakers to adopt more lenient emissions tax policies. This study focuses on analyzing the relationship between the stringency of environmental policies and firms’ strategic offshoring decisions when a government is concerned about the negative effects of increased offshoring such as domestic job losses. The analysis is based on an archetypal proximity concentration framework that has been enhanced by considering environmental regulations and abatement technology. The results imply that the threat of offshoring is more likely to impact emissions tax rates when firms experience higher productivity, or when offshoring leads to a significant level of domestic unemployment. That is, in these cases, the threat of offshoring is more likely to make the government lower emissions tax rates more than the optimal tax rate. Although the direct impact of offshoring on environmental policies is studied in many related works, the indirect impact of offshoring-that is, the threat of offshoring- on environmental policies has been seldom studied.","PeriodicalId":35933,"journal":{"name":"INTERNATIONAL ECONOMIC JOURNAL","volume":"35 1","pages":"155 - 170"},"PeriodicalIF":1.1,"publicationDate":"2021-04-03","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1080/10168737.2021.1910722","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"44223561","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 : 2021-03-26DOI: 10.1080/10168737.2021.1907606
Minjung Park
This paper studies identification and estimation of installed-base effects for product adoption using group-level panel data in the presence of endogenous sample attrition and homophily. After exploring conditions under which installed-base effects are identified using group-level panel data in the considered setting, I propose a modified BLP approach for estimation. The proposed approach accounts for endogenously changing composition of remaining group members in the simulation of predicted adoption rates, thereby addressing sample attrition. To address homophily, the proposed method performs first-differencing within a given group and uses lags and lagged differences of the installed base as instruments. I present Monte Carlo results to numerically demonstrate the identification issues as well as the performance of the proposed estimation method.
{"title":"Identification and Estimation of Installed-Base Effects for Product Adoption Under Sample Attrition and Homophily","authors":"Minjung Park","doi":"10.1080/10168737.2021.1907606","DOIUrl":"https://doi.org/10.1080/10168737.2021.1907606","url":null,"abstract":"This paper studies identification and estimation of installed-base effects for product adoption using group-level panel data in the presence of endogenous sample attrition and homophily. After exploring conditions under which installed-base effects are identified using group-level panel data in the considered setting, I propose a modified BLP approach for estimation. The proposed approach accounts for endogenously changing composition of remaining group members in the simulation of predicted adoption rates, thereby addressing sample attrition. To address homophily, the proposed method performs first-differencing within a given group and uses lags and lagged differences of the installed base as instruments. I present Monte Carlo results to numerically demonstrate the identification issues as well as the performance of the proposed estimation method.","PeriodicalId":35933,"journal":{"name":"INTERNATIONAL ECONOMIC JOURNAL","volume":"35 1","pages":"141 - 154"},"PeriodicalIF":1.1,"publicationDate":"2021-03-26","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1080/10168737.2021.1907606","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"48517379","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 : 2021-03-16DOI: 10.1080/10168737.2021.1901762
H. Pham, Thanh Le, L. Nguyen
This paper investigates the effect of monetary policy on liquidity creation of commercial banks and if the effect is conditional on bank size. The paper uses a dataset covering 23 Vietnamese commercial banks during the period 2007–2017 collected from various sources including State Bank of Vietnam, International Monetary Fund, SNL Financial database (provided by SNL Company), Vietnam General Statistic Office and banks’ annual reports. Different econometric techniques are employed to analyse the data. Obtained results indicate that a contractionary monetary policy could lead to a decrease in bank liquidity creation. This result is less pronounced with larger banks. In particular, among three monetary policy instruments employed in Vietnam, an increase in the base rate is significantly associated with a contraction in bank liquidity creation; open market operations may have a marginal impact while required reserve ratio is ineffective because of its unchanged value throughout the period of the study. This paper is among the first, providing an insight into each monetary policy instrument's role in influencing bank liquidity creation in the context of an emerging economy.
{"title":"Monetary Policy and Bank Liquidity Creation: Does Bank Size Matter?","authors":"H. Pham, Thanh Le, L. Nguyen","doi":"10.1080/10168737.2021.1901762","DOIUrl":"https://doi.org/10.1080/10168737.2021.1901762","url":null,"abstract":"This paper investigates the effect of monetary policy on liquidity creation of commercial banks and if the effect is conditional on bank size. The paper uses a dataset covering 23 Vietnamese commercial banks during the period 2007–2017 collected from various sources including State Bank of Vietnam, International Monetary Fund, SNL Financial database (provided by SNL Company), Vietnam General Statistic Office and banks’ annual reports. Different econometric techniques are employed to analyse the data. Obtained results indicate that a contractionary monetary policy could lead to a decrease in bank liquidity creation. This result is less pronounced with larger banks. In particular, among three monetary policy instruments employed in Vietnam, an increase in the base rate is significantly associated with a contraction in bank liquidity creation; open market operations may have a marginal impact while required reserve ratio is ineffective because of its unchanged value throughout the period of the study. This paper is among the first, providing an insight into each monetary policy instrument's role in influencing bank liquidity creation in the context of an emerging economy.","PeriodicalId":35933,"journal":{"name":"INTERNATIONAL ECONOMIC JOURNAL","volume":"35 1","pages":"205 - 222"},"PeriodicalIF":1.1,"publicationDate":"2021-03-16","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1080/10168737.2021.1901762","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"47113041","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}
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