Pub Date : 2022-06-23DOI: 10.1142/s1793993322500144
Chinazaekpere Nwani
International trade and investment flows provide a mechanism for geographical separation between production and consumption processes. In this study, countries that rely heavily on international trade to supply home demand and have reported positive net CO2 emissions from trade (TrdCO2) over the period 1991–2018 were identified. Accounting for possible distributional heterogeneity, this study examined whether the structural composition of bank credit allocation explains TrdCO2 in these countries. With the growing competition for bank credit resources, the impact of a credit allocation system that prioritizes credit demands of government and state-owned enterprises (GSEs) is modeled and compared to another scenario where the credit allocation decisions of banks rather prioritize financing needs of the private sector. The results showed that the structure of bank credit allocation significantly shapes the exposure of these countries to embodied CO2 emissions in the global trade flows. Specifically, restructuring bank credit allocation towards private sector-focused reduces TrdCO2 while a credit allocation system that allocates more credit to GSEs increases TrdCO2. By implication, bank financing of private sector activities encourages cleaner consumption and can help in mitigating trade-related environmental concerns in developing import-oriented economies.
{"title":"Global Trade Flows and the Role of Bank Financing: Policy Path for Mitigating Associated Environmental Impacts in Import-Oriented Economies","authors":"Chinazaekpere Nwani","doi":"10.1142/s1793993322500144","DOIUrl":"https://doi.org/10.1142/s1793993322500144","url":null,"abstract":"International trade and investment flows provide a mechanism for geographical separation between production and consumption processes. In this study, countries that rely heavily on international trade to supply home demand and have reported positive net CO2 emissions from trade (TrdCO2) over the period 1991–2018 were identified. Accounting for possible distributional heterogeneity, this study examined whether the structural composition of bank credit allocation explains TrdCO2 in these countries. With the growing competition for bank credit resources, the impact of a credit allocation system that prioritizes credit demands of government and state-owned enterprises (GSEs) is modeled and compared to another scenario where the credit allocation decisions of banks rather prioritize financing needs of the private sector. The results showed that the structure of bank credit allocation significantly shapes the exposure of these countries to embodied CO2 emissions in the global trade flows. Specifically, restructuring bank credit allocation towards private sector-focused reduces TrdCO2 while a credit allocation system that allocates more credit to GSEs increases TrdCO2. By implication, bank financing of private sector activities encourages cleaner consumption and can help in mitigating trade-related environmental concerns in developing import-oriented economies.","PeriodicalId":44073,"journal":{"name":"Journal of International Commerce Economics and Policy","volume":"107 1","pages":""},"PeriodicalIF":0.7,"publicationDate":"2022-06-23","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"79256783","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 : 2022-05-27DOI: 10.1142/s1793993322500107
O. F. Derindag, B. Chang, Raheel Gohar, Asma Salman
Various empirical methodologies have examined the relationship between exchange rate and household consumption expenditures. However, traditional methods fail to analyze the exchange rate effect on consumption across minor and major currency depreciation and appreciations. We attempt to extend the existing literature by examining the impact of minor and major currency appreciation and depreciation on household consumption expenditures in BRICST countries, including Brazil, Russia, India, China, South Africa and Turkey. We use an extended version of the nonlinear ARDL (NARDL) and multiple threshold nonlinear ARDL model called the multiple asymmetric ARDL (MATNARDL) model. Our estimates, based on the traditional NARDL model, indicate that the asymmetric effect is found in the context of India and China only. However, the MATNARDL estimates suggest that, in the long run, the asymmetric effect is found for all the sample countries except India whereas, in the short run, the asymmetric effect is found for all the sample countries except Turkey. Finally, this study recommends the policy implications based on the results obtained in this study.
{"title":"Exchange Rate Effect on the Household Consumption in BRICST Countries: Evidence from MATNARDL Model","authors":"O. F. Derindag, B. Chang, Raheel Gohar, Asma Salman","doi":"10.1142/s1793993322500107","DOIUrl":"https://doi.org/10.1142/s1793993322500107","url":null,"abstract":"Various empirical methodologies have examined the relationship between exchange rate and household consumption expenditures. However, traditional methods fail to analyze the exchange rate effect on consumption across minor and major currency depreciation and appreciations. We attempt to extend the existing literature by examining the impact of minor and major currency appreciation and depreciation on household consumption expenditures in BRICST countries, including Brazil, Russia, India, China, South Africa and Turkey. We use an extended version of the nonlinear ARDL (NARDL) and multiple threshold nonlinear ARDL model called the multiple asymmetric ARDL (MATNARDL) model. Our estimates, based on the traditional NARDL model, indicate that the asymmetric effect is found in the context of India and China only. However, the MATNARDL estimates suggest that, in the long run, the asymmetric effect is found for all the sample countries except India whereas, in the short run, the asymmetric effect is found for all the sample countries except Turkey. Finally, this study recommends the policy implications based on the results obtained in this study.","PeriodicalId":44073,"journal":{"name":"Journal of International Commerce Economics and Policy","volume":"7 1","pages":""},"PeriodicalIF":0.7,"publicationDate":"2022-05-27","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"82090418","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 : 2022-05-25DOI: 10.1142/s1793993322500120
Rui Wang
In this paper, we derive a generalized version of New Keynesian Dynamic Stochastic General Equilibrium (DSGE) model to study how real imperfections of labor market affect the steady state and dynamics of model given different non-zero annual target inflation rates. The main finding is that, given the same target inflation rate, wage stickiness is more distortionary than the price stickiness. The existence of positive target inflation rate can also change the first-order dynamics of model, amplifying or reducing the dynamic response of model according to the type of exogenous shocks. A relatively high target inflation rate, 2% or 3%, may be preferable to a zero target inflation rate.
{"title":"A Generalized New Keynesian Model with Wage Stickiness","authors":"Rui Wang","doi":"10.1142/s1793993322500120","DOIUrl":"https://doi.org/10.1142/s1793993322500120","url":null,"abstract":"In this paper, we derive a generalized version of New Keynesian Dynamic Stochastic General Equilibrium (DSGE) model to study how real imperfections of labor market affect the steady state and dynamics of model given different non-zero annual target inflation rates. The main finding is that, given the same target inflation rate, wage stickiness is more distortionary than the price stickiness. The existence of positive target inflation rate can also change the first-order dynamics of model, amplifying or reducing the dynamic response of model according to the type of exogenous shocks. A relatively high target inflation rate, 2% or 3%, may be preferable to a zero target inflation rate.","PeriodicalId":44073,"journal":{"name":"Journal of International Commerce Economics and Policy","volume":"122 1","pages":""},"PeriodicalIF":0.7,"publicationDate":"2022-05-25","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"74540499","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 : 2022-05-18DOI: 10.1142/s1793993322500089
Chokri Zehri, Abualhassan Jumaa Hamid Hamad
This paper studies the empirical impact of Foreign Assets Management (FAM) on companies’ capital expenditure in emerging market economies with International Financial Shocks (IFS). The empirical analysis uses annual data of 2,931 publicly listed companies in 45 emerging market economies from 2000 to 2019. We analyzed a multiplicative regression of a canonical capital expenditure Q model. The findings show that FAM positively affects companies’ capital expenditure. Moreover, financially restricted companies are more sensitive to the favorable impact of FAM compared to restricted companies. Our results highlight the relevance of considering companies’ heterogeneity when examining the effect of macro-management policies. In addition, FAM has a more favorable impact on companies’ capital expenditure in economies that concurrently use capital controls and macroprudential policy. Finally, our findings suggest that successful macro-management policies insulate capital expenditure from adverse IFS. This result highlights the role of more coordinated approaches to repel adverse international shocks.
{"title":"Policies Supporting Firms in the Face of Global Financial Shocks","authors":"Chokri Zehri, Abualhassan Jumaa Hamid Hamad","doi":"10.1142/s1793993322500089","DOIUrl":"https://doi.org/10.1142/s1793993322500089","url":null,"abstract":"This paper studies the empirical impact of Foreign Assets Management (FAM) on companies’ capital expenditure in emerging market economies with International Financial Shocks (IFS). The empirical analysis uses annual data of 2,931 publicly listed companies in 45 emerging market economies from 2000 to 2019. We analyzed a multiplicative regression of a canonical capital expenditure Q model. The findings show that FAM positively affects companies’ capital expenditure. Moreover, financially restricted companies are more sensitive to the favorable impact of FAM compared to restricted companies. Our results highlight the relevance of considering companies’ heterogeneity when examining the effect of macro-management policies. In addition, FAM has a more favorable impact on companies’ capital expenditure in economies that concurrently use capital controls and macroprudential policy. Finally, our findings suggest that successful macro-management policies insulate capital expenditure from adverse IFS. This result highlights the role of more coordinated approaches to repel adverse international shocks.","PeriodicalId":44073,"journal":{"name":"Journal of International Commerce Economics and Policy","volume":"2742 1","pages":""},"PeriodicalIF":0.7,"publicationDate":"2022-05-18","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"86596684","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 : 2022-05-18DOI: 10.1142/s1793993322500090
L. Hung, Bui Thi Hai Anh, Vo tri Thanh
This paper analyzes the dependence pattern of net debts inflows on the sovereign debts rating and the fiscal balance, on accounting for the productivity growth rate. The cross-section evidence on a sample of 149 economies for the period from 1990 to 2019 uncovers that a higher sovereign debts rating, a lower fiscal balance or a higher productivity growth is associated with more net debts inflows. Thus, the debts flows are underlined by the store of wealth accumulation across economies. Moreover, there exists a nonlinearity on the pattern of debts flows, for which the fiscal balance determines the impact of sovereign debts rating on the net debts inflows. The results are robust for panel data regression as well as case study of three economies including Japan, Thailand and Vietnam.
{"title":"International Debts Flows","authors":"L. Hung, Bui Thi Hai Anh, Vo tri Thanh","doi":"10.1142/s1793993322500090","DOIUrl":"https://doi.org/10.1142/s1793993322500090","url":null,"abstract":"This paper analyzes the dependence pattern of net debts inflows on the sovereign debts rating and the fiscal balance, on accounting for the productivity growth rate. The cross-section evidence on a sample of 149 economies for the period from 1990 to 2019 uncovers that a higher sovereign debts rating, a lower fiscal balance or a higher productivity growth is associated with more net debts inflows. Thus, the debts flows are underlined by the store of wealth accumulation across economies. Moreover, there exists a nonlinearity on the pattern of debts flows, for which the fiscal balance determines the impact of sovereign debts rating on the net debts inflows. The results are robust for panel data regression as well as case study of three economies including Japan, Thailand and Vietnam.","PeriodicalId":44073,"journal":{"name":"Journal of International Commerce Economics and Policy","volume":"105 1","pages":""},"PeriodicalIF":0.7,"publicationDate":"2022-05-18","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"81534586","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 : 2022-05-14DOI: 10.1142/s1793993322500077
Nirai Alexander Tomass
We study the heterogeneity of interest rate effects on private saving across the age dimension. Taking income and substitution effects as given, we illustrate how in a simple life cycle model, older individuals respond less to interest rate changes than younger ones. This result is driven by the fact that older individuals have a shorter planning horizon, and consequently a lower and less interest sensitive present discounted value of future earnings. However, estimating a dynamic error components model on a global panel of countries spanning the period 1995–2014, we find that there is no evidence for there being a different interest rate effect for countries with higher old age dependency ratios. Our results stand in contrast to recent studies that find effects which are consistent with the theory.
{"title":"Saving, Interest Rates and Finite Horizons","authors":"Nirai Alexander Tomass","doi":"10.1142/s1793993322500077","DOIUrl":"https://doi.org/10.1142/s1793993322500077","url":null,"abstract":"We study the heterogeneity of interest rate effects on private saving across the age dimension. Taking income and substitution effects as given, we illustrate how in a simple life cycle model, older individuals respond less to interest rate changes than younger ones. This result is driven by the fact that older individuals have a shorter planning horizon, and consequently a lower and less interest sensitive present discounted value of future earnings. However, estimating a dynamic error components model on a global panel of countries spanning the period 1995–2014, we find that there is no evidence for there being a different interest rate effect for countries with higher old age dependency ratios. Our results stand in contrast to recent studies that find effects which are consistent with the theory.","PeriodicalId":44073,"journal":{"name":"Journal of International Commerce Economics and Policy","volume":"1 1","pages":""},"PeriodicalIF":0.7,"publicationDate":"2022-05-14","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"83149455","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 : 2022-05-14DOI: 10.1142/s1793993322500053
Vu Thi Hong Van, Nguyen Thi Thanh Huyen, N. K. Doanh
To shed light on the question of whether or not institutional similarity always increases bilateral trade, we divide institutional quality into the low level (one standard deviation below the mean), medium level (in between minus one and one standard deviation from the mean), and high level (one standard deviation above the mean). By applying the system-GMM estimator, we found that the institutional similarity between the two countries has a trade-boosting effect, except in cases where one or both countries have low-institutional quality. These imply that measures to enhance institutional similarity must be accompanied by policies to promote institutional adaptability.
{"title":"Does Institutional Similarity Necessarily Lead to Increased Bilateral Trade?","authors":"Vu Thi Hong Van, Nguyen Thi Thanh Huyen, N. K. Doanh","doi":"10.1142/s1793993322500053","DOIUrl":"https://doi.org/10.1142/s1793993322500053","url":null,"abstract":"To shed light on the question of whether or not institutional similarity always increases bilateral trade, we divide institutional quality into the low level (one standard deviation below the mean), medium level (in between minus one and one standard deviation from the mean), and high level (one standard deviation above the mean). By applying the system-GMM estimator, we found that the institutional similarity between the two countries has a trade-boosting effect, except in cases where one or both countries have low-institutional quality. These imply that measures to enhance institutional similarity must be accompanied by policies to promote institutional adaptability.","PeriodicalId":44073,"journal":{"name":"Journal of International Commerce Economics and Policy","volume":"1 1","pages":""},"PeriodicalIF":0.7,"publicationDate":"2022-05-14","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"84206668","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 : 2022-05-11DOI: 10.1142/s1793993322500041
Leavitt Ha, Nguyen Van Dai
This paper presents how volatility propagates through the cryptocurrency market. Our paper provides evidence for volatility connectedness on cryptocurrencies. The different econometric techniques, including the stochastic volatility (SVOL) model and time-varying parameter VAR models using a quasi-Bayesian local likelihood (QBLL), are applied to measure the volatility of the cryptocurrency market. Using high-frequency, intra-day data of the largest cryptocurrencies over 2018–2021, we detect the great volatility of the cryptocurrency market are the beginning of 2019, the beginning of 2020, and throughout the year of 2021. The total connectedness values suggest that the cryptocurrency market becomes volatile as the new strains of the Covid-19 appear at the end of 2021. However, by using directional connectedness, we reveal that there are negative and positive spillovers from a specific cryptocurrency to other cryptocurrencies. The great fluctuations in the period before the COVID-19 health crisis stem from the positive resonance (symmetric) between the volatility of each cryptocurrency, while this health crisis leads to substantially positive and negative spillovers (asymmetric) of cryptocurrencies, and this makes market volatility weaker than it actually is.
{"title":"Total and Net-Directional Connectedness of Cryptocurrencies During the Pre- and Post-COVID-19 Pandemic","authors":"Leavitt Ha, Nguyen Van Dai","doi":"10.1142/s1793993322500041","DOIUrl":"https://doi.org/10.1142/s1793993322500041","url":null,"abstract":"This paper presents how volatility propagates through the cryptocurrency market. Our paper provides evidence for volatility connectedness on cryptocurrencies. The different econometric techniques, including the stochastic volatility (SVOL) model and time-varying parameter VAR models using a quasi-Bayesian local likelihood (QBLL), are applied to measure the volatility of the cryptocurrency market. Using high-frequency, intra-day data of the largest cryptocurrencies over 2018–2021, we detect the great volatility of the cryptocurrency market are the beginning of 2019, the beginning of 2020, and throughout the year of 2021. The total connectedness values suggest that the cryptocurrency market becomes volatile as the new strains of the Covid-19 appear at the end of 2021. However, by using directional connectedness, we reveal that there are negative and positive spillovers from a specific cryptocurrency to other cryptocurrencies. The great fluctuations in the period before the COVID-19 health crisis stem from the positive resonance (symmetric) between the volatility of each cryptocurrency, while this health crisis leads to substantially positive and negative spillovers (asymmetric) of cryptocurrencies, and this makes market volatility weaker than it actually is.","PeriodicalId":44073,"journal":{"name":"Journal of International Commerce Economics and Policy","volume":"60 1","pages":""},"PeriodicalIF":0.7,"publicationDate":"2022-05-11","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"82947530","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 : 2022-05-09DOI: 10.1142/s1793993322500065
Lianghu Wang, Jun Shao
In recent years, there were many researches on China Free Trade Pilot Zone (FTZ), however, there was still a lack of research on the effect of the FTZ on trade efficiency. To make up for gaps in research, this paper calculated the trade efficiency of 30 provinces in China with stochastic frontier gravity model, and then empirically tested the policy effect of the FTZ by using the propensity score matching and difference in difference (PSM-DID) method, and further analyzed the inherent mechanism. The results showed that China’s general level of trade efficiency was relatively low, while the average trade efficiency in FTZs was significantly higher. The establishment of the FTZ had a significant positive impact on trade efficiency advances. Before and after the establishment of the pilot free trade zone, the difference between the changes in the trade efficiency measurement results of the treated group provinces and the trade efficiency measurement results of the control group provinces showed the characteristics of first increasing and then decreasing, and the policy effect has a certain lag. The establishment of the FTZ significantly reduced the trade cost. The model estimated that the trade efficiency increased by 3.576% for every 1% growth of trade cost, and the policy effect of the FTZ was significantly positive, which verified the existence of the intermediary effect of trade cost.
{"title":"Can China’s Pilot Free Trade Zone Improve Trade Efficiency?","authors":"Lianghu Wang, Jun Shao","doi":"10.1142/s1793993322500065","DOIUrl":"https://doi.org/10.1142/s1793993322500065","url":null,"abstract":"In recent years, there were many researches on China Free Trade Pilot Zone (FTZ), however, there was still a lack of research on the effect of the FTZ on trade efficiency. To make up for gaps in research, this paper calculated the trade efficiency of 30 provinces in China with stochastic frontier gravity model, and then empirically tested the policy effect of the FTZ by using the propensity score matching and difference in difference (PSM-DID) method, and further analyzed the inherent mechanism. The results showed that China’s general level of trade efficiency was relatively low, while the average trade efficiency in FTZs was significantly higher. The establishment of the FTZ had a significant positive impact on trade efficiency advances. Before and after the establishment of the pilot free trade zone, the difference between the changes in the trade efficiency measurement results of the treated group provinces and the trade efficiency measurement results of the control group provinces showed the characteristics of first increasing and then decreasing, and the policy effect has a certain lag. The establishment of the FTZ significantly reduced the trade cost. The model estimated that the trade efficiency increased by 3.576% for every 1% growth of trade cost, and the policy effect of the FTZ was significantly positive, which verified the existence of the intermediary effect of trade cost.","PeriodicalId":44073,"journal":{"name":"Journal of International Commerce Economics and Policy","volume":"1 1","pages":""},"PeriodicalIF":0.7,"publicationDate":"2022-05-09","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"79868203","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 : 2022-04-21DOI: 10.1142/s179399332250003x
Weikang Zhang, Isabel K. M. Yan, Yin-Wong Cheung
In this paper, we employ the input–output framework and recent global value chain (GVC) results to construct the index of foreign financial services adoption in manufacturing (FFSAM) that captures the role of foreign financial services in facilitating domestic manufacturing production. The FFSAM index shows that foreign financial services adoption by Asian economies has rapidly caught up with the Western world between 2007 and 2017. Asian economies tend to deploy more foreign financial services from high-income economies than low-income economies, and in high-technology manufacturing industries than low-technology manufacturing industries. Manufacturing industries that produce for domestic consumption and for exports tend to attract different groups of financial servicification providers. It is found that the FFSAM index is affected by the GVC position, financial institution factors, and financial market characteristics.
{"title":"Foreign Financial Services Adoption in Manufacturing by Asian Economies: New Index from the Global Value Chain Perspective","authors":"Weikang Zhang, Isabel K. M. Yan, Yin-Wong Cheung","doi":"10.1142/s179399332250003x","DOIUrl":"https://doi.org/10.1142/s179399332250003x","url":null,"abstract":"In this paper, we employ the input–output framework and recent global value chain (GVC) results to construct the index of foreign financial services adoption in manufacturing (FFSAM) that captures the role of foreign financial services in facilitating domestic manufacturing production. The FFSAM index shows that foreign financial services adoption by Asian economies has rapidly caught up with the Western world between 2007 and 2017. Asian economies tend to deploy more foreign financial services from high-income economies than low-income economies, and in high-technology manufacturing industries than low-technology manufacturing industries. Manufacturing industries that produce for domestic consumption and for exports tend to attract different groups of financial servicification providers. It is found that the FFSAM index is affected by the GVC position, financial institution factors, and financial market characteristics.","PeriodicalId":44073,"journal":{"name":"Journal of International Commerce Economics and Policy","volume":"10 1","pages":""},"PeriodicalIF":0.7,"publicationDate":"2022-04-21","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"88349760","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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