Eurasian Economic Review最新文献

This paper examines the nonlinear effects of public debt on economic growth in Asian developing economies through the application of panel Generalized Method of Moments (GMM) regressions and panel vector autoregression (VAR) models. Our analysis reveals a statistically significant nonlinear (i.e., an inverted U-shape) relationship between public debt (as a percentage of GDP) and GDP per capita growth. The turning points are identified at 52 percent for all Asian developing economies and 50 percent for Asian coastal developing economies. Asymmetric mutual feedback effects are observed between economic growth and public debt, contingent on the level of public debt. These two-way effects are both statistically significant and more pronounced when public debt surpasses its threshold level. Additionally, our results unveil geographical (cross-country) heterogeneity in the mutual feedback effects. These findings carry significant policy implications, emphasizing the necessity of employing region-specific debt threshold levels and asymmetric response coefficients in the analysis of public debt policies.

Africa is one of the most vulnerable continents to climate change. Climate and sustainability-linked bonds can provide funding to African governments and corporations for projects that help to mitigate climate change, combat biodiversity loss, and foster sustainable development. However, less than 0.3% of the global environmental, social, governance (ESG) bond issuance volume is devoted to projects in Africa. Based on the entire universe of 107 African ESG bonds from 42 governmental and corporate issuers over the period 2010–2023, this paper establishes that ESG bonds provide benefits to both issuers and investors in terms of lower spreads and volatility. Our econometric results highlight that greenwashing is a valid concern for investors in African ESG bonds and certification of ESG bonds makes a difference vis-à-vis the self-labeling of green bonds. Non-certified ESG bonds do not offer similar benefits compared to certified ones. Green macro-financial policy and suitable regulation to prevent greenwashing can foster African ESG-bond markets.

Abstract

This study investigates the dynamic return connectedness among Decentralized Finance (DeFi) assets [Chainlink (LINK), Maker (MAKER), Basic Attention Token (BAT), and Synthetix (SNX)] and Centralized Financial assets (CeFi), specifically MSCI World, MSCI US, MSCI Europe, MSCI East Europe, MSCI Asia, and MSCI Far East. The Time-Varying Parameter Vector Autoregressions (TVP-VAR) framework is adopted. Our research findings demonstrate that economic events create variations in the dynamic connectedness of a system. There were peaks throughout the COVID-19 pandemic. Furthermore, the results indicate that DeFi assets like BAT and LINK are the most common shock transmitters, while MAKER and SNX are the most common shock receivers. Nonetheless, the pairwise connectedness for LINK and MSCI Far EAST (FarEAST) shows that may not only influence other markets but are also equally receptive to innovations that occur in the majority of these markets due to their high pairwise links. The retrieved evidence has major implications for investors in terms of the creation of strategies for the optimization of portfolios and asset allocation, the minimizing of downside risk, and hedging techniques.

The global warming challenge is probably the major issue of our epoch, calling for a concerted response involving as many entities as possible. The economic system being the main responsible of this troubling situation, it is logical to address it first. The actual monetary economy of production has the banking system as the main driver of its functioning which justifies putting our attention on it. Central banks play a prominent role in such a system. They thus dispose of a relevant room for maneuver, which constitutes one of the main topics addressed here. Before that, this article discusses environmental concerns in a monetary production economy, advocating for an ecological economics approach as our privileged analytical foundation and highlighting the seminal role of the banking system in the monetary essence of our economic system, thus calling for an effort to enrich current monetary policy practices which must depart from the myth of ‘market neutrality’. We therefore propose four axes of intervention with regard to the greening of central banks’ action, which aim at redirecting credit away from carbon-intensive activities and towards low-carbon economic sectors. As needed as it is, adjusting monetary policy would however not suffice, the actual climate crisis being enrooted within the economic growth mantra applied through a profit-seeking scheme. A questioning of the very basis of our economic system is thus required to make the economy sustainable and finally safeguarding the conditions of life on earth.

Previous research has primarily focused on external factors to refine predictions of natural gas volatility, a prominent cleaner fossil fuel. Yet, there's a gap in the literature regarding the intrinsic factors impacting the volatility of natural gas returns, especially during crises. Using the TVP-VAR frequency connectedness method, we uncover a pronounced dynamic integration and return transmission between natural gas and BRICS stock markets. Our findings emphasize a strong interconnectedness in both the lower and upper extremes of the return distribution, indicating the profound effects of both negative and positive extreme shocks. We also document symmetric spillover effects in tumultuous market conditions. Short-term spillovers are critical in transmitting shocks, while long-term ones define interconnectedness patterns. Notably, we identify assets that are net-receivers and net-transmitters, with natural gas consistently being a net receiver. Our results provide valuable insights for investors and portfolio managers, emphasizing the need for stringent risk management during crises like COVID-19 and the Russia–Ukraine conflict due to the presence of non-diversifiable systematic risks.

This study explores the impact of certification on decisions to invest in green bonds. Utilizing a laboratory experiment, we evaluate how different levels of certificate reliability stimulate investments in green bonds, particularly in the context of a green premium. The findings corroborate our hypothesis, showing that reliable certification encourages investors to accept lower returns in exchange for the conservation of natural resources. Importantly, reliable certification may counteract the decline in investments caused by “greenwashing” practices. Consequently, the establishment of a unified and dependable certification system may be crucial to ensure the green attributes sought by investors.

This paper presents total factor productivity (TFP) growth analysis with a panel Stochastic Frontier Approach (SFA) for 26 Türkiye regions from 2004 to 2020. The study is a pioneer in the literature on decomposing TFP growth components at the regional level with the translog production function for the Turkish economy. This work has a fresh approach regarding adjusting the schooling of employment and involving macroeconomic factors in the inefficiency function. The numerous specification tests show considerable production inefficiencies. Therefore, the production frontier is estimated using the True Fixed Effects (TFE) model. The empirical findings reveal that human capital is the primary driver of output growth. Technical efficiency is estimated to be 90.6% on average, with 9.4% of potential output lost due to technical inefficiency. It has been determined that there has been technical progress in labor-saving. Trade has a negative effect on technical efficiency. These findings contribute to understanding TFP change in the Turkish economy with regional data.

Our study is a pioneering endeavor to comprehensively explore the pivotal factors influencing the growth trajectory of the green bond (GB) market in Bangladesh, aligning with the nation’s Sustainable Development Goals (SDGs) in the aftermath of the COVID-19 pandemic. Leveraging the opinions of fifteen local experts, we employ the Analytic Hierarchy Process (AHP) methodology to discern and prioritize the key determinants. Our findings indicate that infrastructure and financial factors emerge as crucial determinants significantly shaping the developmental landscape of the GB market in Bangladesh. Moreover, within the spectrum of twenty-eight sub-factors examined, legal frameworks, the monetary policy of the Central Bank of Bangladesh, institutional infrastructures, and fiscal policies are identified as direct influencers impacting the expansion of the GB market. Consequently, we advocate for a strategic policy focus on infrastructure and financial facets to foster the growth of Bangladesh’s GB markets, particularly in the post-COVID-19 era.

This paper reviews the literature on (potential) green recovery measures in the context of the global financial crisis and the COVID-19 pandemic, focusing on their macroeconomic effects. We find that spending for renewables and energy efficiency is particularly promising with regard to macroeconomic impacts. Moreover, the empirical evidence suggests that green recovery measures are associated with larger macroeconomic effects compared to conventional non-green recovery spending. We also derive lessons learned with regard to open questions and issues as well as accompanying framework conditions which could enhance a macroeconomically successful implementation of green recovery measures.

This paper examines the relationship between corporate governance mechanisms and their impact on green bond yield spreads for companies operating in emerging capital markets. The role of boards in mitigating ESG risks is well studied for developed countries, but there is no evidence of the impact of corporate governance on green finance for emerging capital markets. To fill in the gap, we use a unique dataset constructed with data from Thomson Reuters Refinitiv Eikon, World Bank, and Central Intelligence Agency (CIA). We study 283 green bond issues by 125 companies from 16 emerging markets with assigned ESG scores for the period between 2017 and 2022. Our findings contribute to the literature in several ways. First, we provide new evidence for the significant impact of corporate governance on green bond yield spreads in emerging capital markets. Second, we demonstrate that issuers with higher CEO power will enjoy higher green bond yields. Third, board size matters for investors in corporate green bonds from emerging capital markets and has a negative impact on the yield spread. Moreover, in the research model we account for the specific features of the country’s institutional environment, such as the quality of the country’s regulatory system, the capacity of the central authority and the nature of its legal system. Our findings provide evidence that only government effectiveness and rule of law indexes are significant drivers of green bond spreads, while the regulatory quality index is not.