Abstract Financial development has proven to be one of the major determinants of energy consumption. Although, the U-curve relationship between financial development and energy demand is frequently featured in the literature, there is not much discussion of nonlinear relationships between financial development and energy consumption. In this study we investigated the nexus of these two phenomena in transitional economy countries over the period from 1990 to 2011 employing a Systems-GMM model and the panel cointegration method. The empirical results reveal strong evidence of an inverse U-shaped pattern for the impacts of financial development on energy consumption. The net total effect of financial development on energy demand implies that a one standard deviation increase in financial depth induces a decrease in energy consumption by 0.09 kg of oil equivalent per capita. We also found evidence of Granger causality of financial development on energy demand. The existence of a linkage between the two has been suggested in an earlier study conducted by Coban and Topcu [26]. Although they established the nonlinear nature of the relationship between financial development and energy consumption, this was only apparent after they divided the sample between older and newer EU members. In this respect the effect of financial development on energy consumption is rather dubious because that study used a dynamic panel data model for 15 countries over the period from 1990 to 2011.
{"title":"The Impact of Financial Development on Energy Demand in Transition Economies","authors":"Yessengali Oskenbayev, Murat Issabayev","doi":"10.1515/gej-2018-0014","DOIUrl":"https://doi.org/10.1515/gej-2018-0014","url":null,"abstract":"Abstract Financial development has proven to be one of the major determinants of energy consumption. Although, the U-curve relationship between financial development and energy demand is frequently featured in the literature, there is not much discussion of nonlinear relationships between financial development and energy consumption. In this study we investigated the nexus of these two phenomena in transitional economy countries over the period from 1990 to 2011 employing a Systems-GMM model and the panel cointegration method. The empirical results reveal strong evidence of an inverse U-shaped pattern for the impacts of financial development on energy consumption. The net total effect of financial development on energy demand implies that a one standard deviation increase in financial depth induces a decrease in energy consumption by 0.09 kg of oil equivalent per capita. We also found evidence of Granger causality of financial development on energy demand. The existence of a linkage between the two has been suggested in an earlier study conducted by Coban and Topcu [26]. Although they established the nonlinear nature of the relationship between financial development and energy consumption, this was only apparent after they divided the sample between older and newer EU members. In this respect the effect of financial development on energy consumption is rather dubious because that study used a dynamic panel data model for 15 countries over the period from 1990 to 2011.","PeriodicalId":44015,"journal":{"name":"Global Economy Journal","volume":"50 1","pages":""},"PeriodicalIF":0.7,"publicationDate":"2018-06-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"91124876","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}
Termkiat Kanchanapoom, Chaiyuth Padungsaksawasdi, Pornchai Chunhachinda, Maria E. de Boyrie
Abstract This paper applies a mixed effect model to investigate the relationship between international equity returns and forward discount sorted currency returns from three base currencies (i. e., US dollar, euro, and pound sterling). Empirical results using the portfolio approach show that high-interest rate currencies co-move positively while low-interest rate currencies co-move negatively, suggesting that foreign equity excess returns can help to explain investment in currency markets, providing a partial resolution to the uncovered interest parity conundrum. Furthermore, we show that global equity market returns, volatility, and liquidity correlate well with currency returns.
{"title":"Uncovered Interest Rate Parity, Carry Trade, and Country Equity Return Differentials","authors":"Termkiat Kanchanapoom, Chaiyuth Padungsaksawasdi, Pornchai Chunhachinda, Maria E. de Boyrie","doi":"10.1515/gej-2018-0041","DOIUrl":"https://doi.org/10.1515/gej-2018-0041","url":null,"abstract":"Abstract This paper applies a mixed effect model to investigate the relationship between international equity returns and forward discount sorted currency returns from three base currencies (i. e., US dollar, euro, and pound sterling). Empirical results using the portfolio approach show that high-interest rate currencies co-move positively while low-interest rate currencies co-move negatively, suggesting that foreign equity excess returns can help to explain investment in currency markets, providing a partial resolution to the uncovered interest parity conundrum. Furthermore, we show that global equity market returns, volatility, and liquidity correlate well with currency returns.","PeriodicalId":44015,"journal":{"name":"Global Economy Journal","volume":"3 1","pages":""},"PeriodicalIF":0.7,"publicationDate":"2018-06-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"88143099","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}
Abstract Many factors have contributed to the current wave of anti-globalization sentiments in the advanced world. This paper focuses on one of such factors, MNEs’ job-offshoring through their overseas networks of operation and its impact on the US working class. To this end, the “ladder of economic development a la Schumpeter” is presented as an analytical model from a structuralist point of view. Within this framework, the relations of innovation-driven structural change, transmigration of industries from more advanced to emerging economies at the hands of MNEs, and the globalization-afflicted working class and communities in the US are examined as closely intertwined, co-evolutionary phenomena. Four MNE-related sources of globalization angst and social costs are then discussed. The paper concludes with a much-needed analysis of the economic rationales for President Trump’s “if you sell here, produce here” jawboning on MNEs.
{"title":"The Liberal World Order and the Job-Offshoring Backlash—In Structuralist Perspective","authors":"T. Ozawa","doi":"10.1515/gej-2018-0026","DOIUrl":"https://doi.org/10.1515/gej-2018-0026","url":null,"abstract":"Abstract Many factors have contributed to the current wave of anti-globalization sentiments in the advanced world. This paper focuses on one of such factors, MNEs’ job-offshoring through their overseas networks of operation and its impact on the US working class. To this end, the “ladder of economic development a la Schumpeter” is presented as an analytical model from a structuralist point of view. Within this framework, the relations of innovation-driven structural change, transmigration of industries from more advanced to emerging economies at the hands of MNEs, and the globalization-afflicted working class and communities in the US are examined as closely intertwined, co-evolutionary phenomena. Four MNE-related sources of globalization angst and social costs are then discussed. The paper concludes with a much-needed analysis of the economic rationales for President Trump’s “if you sell here, produce here” jawboning on MNEs.","PeriodicalId":44015,"journal":{"name":"Global Economy Journal","volume":"9 1","pages":""},"PeriodicalIF":0.7,"publicationDate":"2018-06-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"75294737","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}
Abstract Expanded international trade in goods and services has driven economic development in the Asia-Pacific since the 1994 APEC Bogor declaration that called for free trade and investment in the region. Despite this goal, APEC has predominantly focussed on international trade rather than investment. To redress this bias, the paper first highlights the benefits from increased international investment before examining APEC foreign investment flows relative to trade flows in APEC economies. It then examines key trends before concluding that APEC should prioritize foreign investment to accelerate economic development and living standards in the region.
{"title":"Prioritizing Foreign Investment In APEC","authors":"A. Makin, Andreas Chai","doi":"10.1515/gej-2018-0025","DOIUrl":"https://doi.org/10.1515/gej-2018-0025","url":null,"abstract":"Abstract Expanded international trade in goods and services has driven economic development in the Asia-Pacific since the 1994 APEC Bogor declaration that called for free trade and investment in the region. Despite this goal, APEC has predominantly focussed on international trade rather than investment. To redress this bias, the paper first highlights the benefits from increased international investment before examining APEC foreign investment flows relative to trade flows in APEC economies. It then examines key trends before concluding that APEC should prioritize foreign investment to accelerate economic development and living standards in the region.","PeriodicalId":44015,"journal":{"name":"Global Economy Journal","volume":"100 1","pages":""},"PeriodicalIF":0.7,"publicationDate":"2018-06-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"89978648","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}
Abstract Does inflation affect economic growth in Botswana over the short-run and long-run? In applying bounds procedure for modelling ARDL cointegation effects applied to empirical data collected between 1975 and 2016 we find that this hypothesis does not hold true for Botswana as inflation is found to be insignificantly related with economic growth over both the short and long-run. Our growth equation estimates point to exports (positive), government size (negative) and an Pula/Dollar exchange rate (negative) as being significantly correlated with steady-state GDP growth. Further empirical exercises show that an appreciated Pula/dollar exchange rate increases inflation whilst bearing no effect on economic growth. Conversely, a depreciated Pula/Dollar exchange simultaneously decreases inflation and economic growth for the Botswana economy. Policymakers should be this aware that attainment of lower inflation rates which occurs through a depreciated Pula/Dollar currency will only retard economic growth.
{"title":"Inflation-Growth Nexus in Botswana: Can Lower Inflation Really Spur Growth in the Country?","authors":"Gosego Mothuti, A. Phiri","doi":"10.1515/gej-2018-0045","DOIUrl":"https://doi.org/10.1515/gej-2018-0045","url":null,"abstract":"Abstract Does inflation affect economic growth in Botswana over the short-run and long-run? In applying bounds procedure for modelling ARDL cointegation effects applied to empirical data collected between 1975 and 2016 we find that this hypothesis does not hold true for Botswana as inflation is found to be insignificantly related with economic growth over both the short and long-run. Our growth equation estimates point to exports (positive), government size (negative) and an Pula/Dollar exchange rate (negative) as being significantly correlated with steady-state GDP growth. Further empirical exercises show that an appreciated Pula/dollar exchange rate increases inflation whilst bearing no effect on economic growth. Conversely, a depreciated Pula/Dollar exchange simultaneously decreases inflation and economic growth for the Botswana economy. Policymakers should be this aware that attainment of lower inflation rates which occurs through a depreciated Pula/Dollar currency will only retard economic growth.","PeriodicalId":44015,"journal":{"name":"Global Economy Journal","volume":"17 1","pages":""},"PeriodicalIF":0.7,"publicationDate":"2018-06-20","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"78244626","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}
Abstract This paper assesses the impact of export diversification in developing countries and particularly Least developed countries (LDCs) on the relative preferential margin that they enjoy in accessing preference-granters’ market. The analysis is carried out in a gravity-type model comprising 19 developed countries and 54 beneficiaries of non-reciprocal trade preferences from these developed countries, over the period 2002–2007. The empirical analysis suggests a non-linear relationship between the degree of export diversification in developing countries and the relative preferential margin that they benefit from developed preference-granting countries. However, it appears that the latter encourage LDCs to diversify their export products by providing them with higher trade preference advantages compared to their competitors in their markets.
{"title":"A Prima Facie Evidence on the Impact of Export Diversification on Relative Trade Preferential Margin","authors":"S. Gnangnon","doi":"10.1515/gej-2016-0015","DOIUrl":"https://doi.org/10.1515/gej-2016-0015","url":null,"abstract":"Abstract This paper assesses the impact of export diversification in developing countries and particularly Least developed countries (LDCs) on the relative preferential margin that they enjoy in accessing preference-granters’ market. The analysis is carried out in a gravity-type model comprising 19 developed countries and 54 beneficiaries of non-reciprocal trade preferences from these developed countries, over the period 2002–2007. The empirical analysis suggests a non-linear relationship between the degree of export diversification in developing countries and the relative preferential margin that they benefit from developed preference-granting countries. However, it appears that the latter encourage LDCs to diversify their export products by providing them with higher trade preference advantages compared to their competitors in their markets.","PeriodicalId":44015,"journal":{"name":"Global Economy Journal","volume":"70 1","pages":""},"PeriodicalIF":0.7,"publicationDate":"2018-06-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"83811819","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}
Michael A. Anderson, M. Davies, José E. Signoret, Stephen L. S. Smith
Abstract Using a novel dataset we examine the pricing behavior of Indian exporters, in particular looking at the relationship between export prices and the quality of imported inputs that firms use, conditioning on firm capability (productivity). Exporting firms that directly import are different in important ways from exporters that do not import directly. Among directly importing exporters, higher quality (higher price) imports are associated with higher quality (higher price) exports. In this respect, Indian exporters behave similarly to other developing country exporters, offering suggestive evidence of the importance for export success of access to high-quality imports.
{"title":"Firm Heterogeneity, Imported Input Quality, and Export Pricing in India","authors":"Michael A. Anderson, M. Davies, José E. Signoret, Stephen L. S. Smith","doi":"10.1515/gej-2018-0034","DOIUrl":"https://doi.org/10.1515/gej-2018-0034","url":null,"abstract":"Abstract Using a novel dataset we examine the pricing behavior of Indian exporters, in particular looking at the relationship between export prices and the quality of imported inputs that firms use, conditioning on firm capability (productivity). Exporting firms that directly import are different in important ways from exporters that do not import directly. Among directly importing exporters, higher quality (higher price) imports are associated with higher quality (higher price) exports. In this respect, Indian exporters behave similarly to other developing country exporters, offering suggestive evidence of the importance for export success of access to high-quality imports.","PeriodicalId":44015,"journal":{"name":"Global Economy Journal","volume":"138 1","pages":""},"PeriodicalIF":0.7,"publicationDate":"2018-06-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"77413257","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}
Abstract Lead jurisdiction models represent one option how to extend and enhance contemporary interagency cooperation among competition policy regimes. They constitute a multilateral, case-related form of cooperation that is suited to effectively create a one-stop-shop for the prosecution of international cartels, the handling of cross-border mergers and acquisitions and the governance of international antitrust cases. Thus, lead jurisdiction models offer considerable economic benefits. However, they also entail several caveats. Three possible working problems and downside effects of lead jurisdiction models in international competition policy enforcement are discussed in this paper.
{"title":"Lead Jurisdiction Concepts: Prospects and Limits for Rationalizing International Competition Policy Enforcement","authors":"Oliver Budzinski","doi":"10.1515/gej-2016-0025","DOIUrl":"https://doi.org/10.1515/gej-2016-0025","url":null,"abstract":"Abstract Lead jurisdiction models represent one option how to extend and enhance contemporary interagency cooperation among competition policy regimes. They constitute a multilateral, case-related form of cooperation that is suited to effectively create a one-stop-shop for the prosecution of international cartels, the handling of cross-border mergers and acquisitions and the governance of international antitrust cases. Thus, lead jurisdiction models offer considerable economic benefits. However, they also entail several caveats. Three possible working problems and downside effects of lead jurisdiction models in international competition policy enforcement are discussed in this paper.","PeriodicalId":44015,"journal":{"name":"Global Economy Journal","volume":"45 1","pages":""},"PeriodicalIF":0.7,"publicationDate":"2018-06-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"87090738","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}
Abstract This paper analyzes the long-run relationship between labor share and its determinants for 20 Latin American countries from 1980 to 2014. Using the pooled mean group estimator, we find evidence that technological change, the globalization process, and financial integration, have contributed to the decline of labor share in Latin America. We also find evidence of the importance of institutional factors and public spending for the labor share. Finally, we discuss the role of the informal sector on the dynamics of the decline. Our key findings are robust to various specifications and methodologies.
{"title":"The Labor Share Squeeze in Latin America: A Dynamic Heterogeneous Approach","authors":"Ryan Joy, Cesar M. Rodriguez, I. Ruprah","doi":"10.1515/gej-2017-0083","DOIUrl":"https://doi.org/10.1515/gej-2017-0083","url":null,"abstract":"Abstract This paper analyzes the long-run relationship between labor share and its determinants for 20 Latin American countries from 1980 to 2014. Using the pooled mean group estimator, we find evidence that technological change, the globalization process, and financial integration, have contributed to the decline of labor share in Latin America. We also find evidence of the importance of institutional factors and public spending for the labor share. Finally, we discuss the role of the informal sector on the dynamics of the decline. Our key findings are robust to various specifications and methodologies.","PeriodicalId":44015,"journal":{"name":"Global Economy Journal","volume":"23 1","pages":""},"PeriodicalIF":0.7,"publicationDate":"2018-06-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"74294291","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}
Farnaz Farnia, N. de Marcellis-Warin, Thierry Warin
Abstract Ecolabelling is a market-based instrument and an important element of international environmental policies. In our day and age, there is a wide range of ecolabels, which may complicate the decision-making process when looking for the best outcome for consumers and producers. The International Organization for Standardization (ISO) and Global Ecolabelling Network (GEN) suggest a solution to align the various ecolabelling programs. For instance, ISO launched the ISO 14,001 framework, which includes the requirements for Environmental Management Systems (EMSs). The GEN harmonizes international ecolabelling schemes and improves exchanges of information among its country members. This article addresses how unaligned and aligned regulations impact international trade. Consequently, a database including the ISO 14,001 certifications of all countries and containing the exports from 153 countries to Canada from 2001 to 2015 as a dependent variable was created. The remaining variables will serve as independent variables, including gravity variables such as market size, market similarity, distance, and some other core variables such as GEN membership of the exporting country, WTO membership, binding in Free Trade Agreements (FTA) and Mutual Recognition Agreements (MRA) with Canada. Findings show that holding ISO 14,001 certifications has a positive impact on exports to Canada; however, these impacts are not significant enough. Therefore, there is not strong evidence that ISO 14,001 creates barriers to export to Canada. In addition, GEN membership significantly promotes exports to Canada, especially for countries binding in an FTA or MRA with Canada.
{"title":"Technical Barriers to Trade: A Canadian Perspective on Ecolabelling","authors":"Farnaz Farnia, N. de Marcellis-Warin, Thierry Warin","doi":"10.1515/gej-2017-0090","DOIUrl":"https://doi.org/10.1515/gej-2017-0090","url":null,"abstract":"Abstract Ecolabelling is a market-based instrument and an important element of international environmental policies. In our day and age, there is a wide range of ecolabels, which may complicate the decision-making process when looking for the best outcome for consumers and producers. The International Organization for Standardization (ISO) and Global Ecolabelling Network (GEN) suggest a solution to align the various ecolabelling programs. For instance, ISO launched the ISO 14,001 framework, which includes the requirements for Environmental Management Systems (EMSs). The GEN harmonizes international ecolabelling schemes and improves exchanges of information among its country members. This article addresses how unaligned and aligned regulations impact international trade. Consequently, a database including the ISO 14,001 certifications of all countries and containing the exports from 153 countries to Canada from 2001 to 2015 as a dependent variable was created. The remaining variables will serve as independent variables, including gravity variables such as market size, market similarity, distance, and some other core variables such as GEN membership of the exporting country, WTO membership, binding in Free Trade Agreements (FTA) and Mutual Recognition Agreements (MRA) with Canada. Findings show that holding ISO 14,001 certifications has a positive impact on exports to Canada; however, these impacts are not significant enough. Therefore, there is not strong evidence that ISO 14,001 creates barriers to export to Canada. In addition, GEN membership significantly promotes exports to Canada, especially for countries binding in an FTA or MRA with Canada.","PeriodicalId":44015,"journal":{"name":"Global Economy Journal","volume":"14 1","pages":""},"PeriodicalIF":0.7,"publicationDate":"2018-05-05","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"82538209","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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