Pub Date : 2022-07-03DOI: 10.1080/1226508X.2022.2121936
Yeonjin Shin, Jung Hur
ABSTRACT We examine effects of financial soundness on various export activities of manufacturing firms in South Korea. The main results are as follows. First, the export-starters prepared to have a better financial soundness a few years before becoming export-starter. Second, the better financial soundness at a given year increases a probability for a firm to become a new exporter at the following year. Third, the better financial soundness is related to covering export market entry costs rather than export continuation costs. Our findings imply that the financial soundness plays a self-selection role in increasing numbers of export firms in manufacturing sectors.
{"title":"Effects of Financial Soundness on Export Activities: Evidence from Firm-Level Data of Korea","authors":"Yeonjin Shin, Jung Hur","doi":"10.1080/1226508X.2022.2121936","DOIUrl":"https://doi.org/10.1080/1226508X.2022.2121936","url":null,"abstract":"ABSTRACT We examine effects of financial soundness on various export activities of manufacturing firms in South Korea. The main results are as follows. First, the export-starters prepared to have a better financial soundness a few years before becoming export-starter. Second, the better financial soundness at a given year increases a probability for a firm to become a new exporter at the following year. Third, the better financial soundness is related to covering export market entry costs rather than export continuation costs. Our findings imply that the financial soundness plays a self-selection role in increasing numbers of export firms in manufacturing sectors.","PeriodicalId":45235,"journal":{"name":"Global Economic Review","volume":"33 1","pages":"175 - 194"},"PeriodicalIF":1.7,"publicationDate":"2022-07-03","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"79417992","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2022-06-20DOI: 10.1080/1226508X.2022.2085135
K. Li, Sang‐Hyun Kim
ABSTRACT This paper employs a field experiment to investigate in which information environment team-based incentives work better. The experiment was conducted in two spinning factories in Henan, China. We focus on workers who were doing the same individualistic task but still were paid according to team performances. For about three months, we have given three different types of performance feedback, baseline, intra-team, and inter-team feedbacks. We find that workers’ productivity was highest with the intra-team feedback and lowest with the baseline feedback, which suggests that peer pressure and group status concern are of importance in making team incentives work.
{"title":"Performance Feedback with Team Incentive: A Field Experiment in Chinese Factories","authors":"K. Li, Sang‐Hyun Kim","doi":"10.1080/1226508X.2022.2085135","DOIUrl":"https://doi.org/10.1080/1226508X.2022.2085135","url":null,"abstract":"ABSTRACT\u0000 This paper employs a field experiment to investigate in which information environment team-based incentives work better. The experiment was conducted in two spinning factories in Henan, China. We focus on workers who were doing the same individualistic task but still were paid according to team performances. For about three months, we have given three different types of performance feedback, baseline, intra-team, and inter-team feedbacks. We find that workers’ productivity was highest with the intra-team feedback and lowest with the baseline feedback, which suggests that peer pressure and group status concern are of importance in making team incentives work.","PeriodicalId":45235,"journal":{"name":"Global Economic Review","volume":"33 1","pages":"216 - 231"},"PeriodicalIF":1.7,"publicationDate":"2022-06-20","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"79543857","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2022-04-03DOI: 10.1080/1226508X.2022.2085134
B. Abbasi, Zhimin Luo, Ali Sohail, Shasha Wang
ABSTRACT This paper has examined rural-urban Chinese student’s non-cognitive abilities using the China Education Panel Survey (CEPS) by employing include Two-Sample t-Test, Regression analysis, and Oaxaca–Blinder Decomposition analysis. The results reveal a significant gap in the non-cognitive abilities of rural and urban students in which that of the urban students is higher. Furthermore, irrespective of whether rural or urban, male students have higher non-cognitive ability than female students. Moreover, it discovered that about 52% of the rural-urban non-cognitive abilities gap accounted by the following factors, namely region, gender, whether the student is the only child, school grade, and ethnic minority.
{"title":"Research on Non-Cognitive Ability Disparity of Chinese Adolescent Students: A Rural-Urban Analysis","authors":"B. Abbasi, Zhimin Luo, Ali Sohail, Shasha Wang","doi":"10.1080/1226508X.2022.2085134","DOIUrl":"https://doi.org/10.1080/1226508X.2022.2085134","url":null,"abstract":"ABSTRACT This paper has examined rural-urban Chinese student’s non-cognitive abilities using the China Education Panel Survey (CEPS) by employing include Two-Sample t-Test, Regression analysis, and Oaxaca–Blinder Decomposition analysis. The results reveal a significant gap in the non-cognitive abilities of rural and urban students in which that of the urban students is higher. Furthermore, irrespective of whether rural or urban, male students have higher non-cognitive ability than female students. Moreover, it discovered that about 52% of the rural-urban non-cognitive abilities gap accounted by the following factors, namely region, gender, whether the student is the only child, school grade, and ethnic minority.","PeriodicalId":45235,"journal":{"name":"Global Economic Review","volume":"36 1","pages":"159 - 174"},"PeriodicalIF":1.7,"publicationDate":"2022-04-03","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"81889987","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2022-04-03DOI: 10.1080/1226508X.2022.2079544
Deokki Ko
ABSTRACT This study proposes an exogenous financial stress index for South Korea’s foreign exchange market (EXO-FSIFX) and explores its effect on firm investments using panel data on manufacturing firms listed on the Korea Exchange from 2000 to 2019. The empirical results show that EXO-FSIFX negatively affects firm investments on average, and the strength of this relationship varies by firm characteristics. Specifically, the negative impact of EXO-FSIFX on firm investments increases in firms with procyclical sales and financial unsoundness.
{"title":"Financial Stress in the Foreign Exchange Market and its Real Effect on Firm Investments: Evidence from South Korea","authors":"Deokki Ko","doi":"10.1080/1226508X.2022.2079544","DOIUrl":"https://doi.org/10.1080/1226508X.2022.2079544","url":null,"abstract":"ABSTRACT This study proposes an exogenous financial stress index for South Korea’s foreign exchange market (EXO-FSIFX) and explores its effect on firm investments using panel data on manufacturing firms listed on the Korea Exchange from 2000 to 2019. The empirical results show that EXO-FSIFX negatively affects firm investments on average, and the strength of this relationship varies by firm characteristics. Specifically, the negative impact of EXO-FSIFX on firm investments increases in firms with procyclical sales and financial unsoundness.","PeriodicalId":45235,"journal":{"name":"Global Economic Review","volume":"22 1","pages":"142 - 158"},"PeriodicalIF":1.7,"publicationDate":"2022-04-03","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"90640683","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2022-04-03DOI: 10.1080/1226508X.2022.2060277
Yunqing Wang, Linsen Yin, Xinyu Sui, Wenjie Pan
ABSTRACT We develop a small open economy DSGE-based New Keynesian model incorporating the demand for oil, to focus on whether the PBoC targets core inflation or headline inflation including oil price inflation, and investigating the macroeconomic effect of oil price shocks. Based on both counterfactual simulations and welfare evaluations, our results indicate that targeting both core inflation and non-core inflation are inferior to the one purely pegged to core inflation, suggesting the central bank should target core inflation instead of headline inflation. Our paper contributes to a growing literature on monetary policy in China and other emerging market economies.
{"title":"Oil Price Shocks and Inflation Targeting in China","authors":"Yunqing Wang, Linsen Yin, Xinyu Sui, Wenjie Pan","doi":"10.1080/1226508X.2022.2060277","DOIUrl":"https://doi.org/10.1080/1226508X.2022.2060277","url":null,"abstract":"ABSTRACT We develop a small open economy DSGE-based New Keynesian model incorporating the demand for oil, to focus on whether the PBoC targets core inflation or headline inflation including oil price inflation, and investigating the macroeconomic effect of oil price shocks. Based on both counterfactual simulations and welfare evaluations, our results indicate that targeting both core inflation and non-core inflation are inferior to the one purely pegged to core inflation, suggesting the central bank should target core inflation instead of headline inflation. Our paper contributes to a growing literature on monetary policy in China and other emerging market economies.","PeriodicalId":45235,"journal":{"name":"Global Economic Review","volume":"14 1","pages":"114 - 141"},"PeriodicalIF":1.7,"publicationDate":"2022-04-03","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"87684979","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2022-03-01DOI: 10.1080/1226508X.2023.2171459
Hyun‐Hoon Lee, Kazunobu Hayakawa, Cyn‐Young Park
ABSTRACT This study empirically examines how the coronavirus disease (COVID-19) has impacted foreign direct investment (FDI), using the quarterly data on bilateral FDI flows from 173 home to 192 host economies from the first quarter of 2019 to the second quarter of 2021. The severity of COVID-19 in host economies adversely affected FDI in the manufacturing sector regardless of the entry mode, but the effect of home economies’ COVID-19 situation on FDI was insignificant. On the other hand, in the services sector, the severity of COVID-19 in both host and home economies has significantly negative impact on greenfield FDI, not on cross-border M&A.
{"title":"The Effect of COVID-19 on Foreign Direct Investment","authors":"Hyun‐Hoon Lee, Kazunobu Hayakawa, Cyn‐Young Park","doi":"10.1080/1226508X.2023.2171459","DOIUrl":"https://doi.org/10.1080/1226508X.2023.2171459","url":null,"abstract":"ABSTRACT This study empirically examines how the coronavirus disease (COVID-19) has impacted foreign direct investment (FDI), using the quarterly data on bilateral FDI flows from 173 home to 192 host economies from the first quarter of 2019 to the second quarter of 2021. The severity of COVID-19 in host economies adversely affected FDI in the manufacturing sector regardless of the entry mode, but the effect of home economies’ COVID-19 situation on FDI was insignificant. On the other hand, in the services sector, the severity of COVID-19 in both host and home economies has significantly negative impact on greenfield FDI, not on cross-border M&A.","PeriodicalId":45235,"journal":{"name":"Global Economic Review","volume":"101 1","pages":"1 - 17"},"PeriodicalIF":1.7,"publicationDate":"2022-03-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"76862645","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2022-02-21DOI: 10.1080/1226508X.2022.2040378
K. Y. Lee, Hyun Park
ABSTRACT This paper explores the economic impact of illegal immigration in a dynamic general equilibrium model when the domestic labour supply is elastic and the fiscal policies include various taxes and income transfers. We first find that despite the mixed effects of illegal immigration on endogenous leisure-labour and saving-investment decisions, illegal immigration improves the welfare of domestic households in a dynamic competitive economy. The countervailing effects, however, show the wage differential improves individual welfare but hurts aggregate production. We then examine how the fiscal policies of illegal immigration influence a decentralised competitive equilibrium. Whereas the equivalence of economic incidence requires taxation on illegal immigrants, partial compliance causes the nonequivalence between labour income taxes and payroll taxes. Again, due to the countervailing effects, fiscal burden causes an adversary effect on the welfare of domestic households but stimulates aggregate economic performance. The opposite effects also arise in the fiscal contribution of illegal immigrants.
{"title":"Illegal Immigration, Labour Supply, and Fiscal Policies","authors":"K. Y. Lee, Hyun Park","doi":"10.1080/1226508X.2022.2040378","DOIUrl":"https://doi.org/10.1080/1226508X.2022.2040378","url":null,"abstract":"ABSTRACT This paper explores the economic impact of illegal immigration in a dynamic general equilibrium model when the domestic labour supply is elastic and the fiscal policies include various taxes and income transfers. We first find that despite the mixed effects of illegal immigration on endogenous leisure-labour and saving-investment decisions, illegal immigration improves the welfare of domestic households in a dynamic competitive economy. The countervailing effects, however, show the wage differential improves individual welfare but hurts aggregate production. We then examine how the fiscal policies of illegal immigration influence a decentralised competitive equilibrium. Whereas the equivalence of economic incidence requires taxation on illegal immigrants, partial compliance causes the nonequivalence between labour income taxes and payroll taxes. Again, due to the countervailing effects, fiscal burden causes an adversary effect on the welfare of domestic households but stimulates aggregate economic performance. The opposite effects also arise in the fiscal contribution of illegal immigrants.","PeriodicalId":45235,"journal":{"name":"Global Economic Review","volume":"52 1","pages":"75 - 113"},"PeriodicalIF":1.7,"publicationDate":"2022-02-21","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"77213647","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2022-01-02DOI: 10.1080/1226508X.2022.2040379
Duk Gyoo Kim, Jinhyuk Lee, Euncheol Shin
ABSTRACT Policy decisions often involve a repeated proofreading process before implementation. We present a dynamic model of proofreading decisions by a heterogeneous committee before implementing a risky policy. The proofreading process is necessary because the risky policy contains an unknown number of errors. Proofreading continues as long as a qualified majority votes for continuation. Once the proofreading process ends, and the policy is implemented, members receive heterogeneous penalties based on the remaining errors. We characterize the optimal voting rule given the costs and penalties for the committee. We find that any qualified voting rule, including majority rule, for proofreading is inefficient.
{"title":"Collective Proofreading and the Optimal Voting Rule","authors":"Duk Gyoo Kim, Jinhyuk Lee, Euncheol Shin","doi":"10.1080/1226508X.2022.2040379","DOIUrl":"https://doi.org/10.1080/1226508X.2022.2040379","url":null,"abstract":"ABSTRACT Policy decisions often involve a repeated proofreading process before implementation. We present a dynamic model of proofreading decisions by a heterogeneous committee before implementing a risky policy. The proofreading process is necessary because the risky policy contains an unknown number of errors. Proofreading continues as long as a qualified majority votes for continuation. Once the proofreading process ends, and the policy is implemented, members receive heterogeneous penalties based on the remaining errors. We characterize the optimal voting rule given the costs and penalties for the committee. We find that any qualified voting rule, including majority rule, for proofreading is inefficient.","PeriodicalId":45235,"journal":{"name":"Global Economic Review","volume":"8 1","pages":"1 - 17"},"PeriodicalIF":1.7,"publicationDate":"2022-01-02","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"82036227","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2022-01-02DOI: 10.1080/1226508X.2022.2040043
Jia Li, Zheng-ying Luo
ABSTRACT This paper uses the sample companies in China, taking the promulgation and implementation of the <> as an external event shock, and studies the impact of product market competition on stock price crash risk. The result shows that product market competition significantly reduces stock price crash risk, which is quite different from the conclusion under the American economic environment. Further research finds that high management agency problems and opacity of enterprise information may be the impact channel of product market competition to reduce stock price crash risk.
{"title":"A Quasi-Natural Experiment: Product Market Competition and Stock Price Crash Risk","authors":"Jia Li, Zheng-ying Luo","doi":"10.1080/1226508X.2022.2040043","DOIUrl":"https://doi.org/10.1080/1226508X.2022.2040043","url":null,"abstract":"ABSTRACT This paper uses the sample companies in China, taking the promulgation and implementation of the <<Catalogue for the Guidance of Industries for Foreign Investment>> as an external event shock, and studies the impact of product market competition on stock price crash risk. The result shows that product market competition significantly reduces stock price crash risk, which is quite different from the conclusion under the American economic environment. Further research finds that high management agency problems and opacity of enterprise information may be the impact channel of product market competition to reduce stock price crash risk.","PeriodicalId":45235,"journal":{"name":"Global Economic Review","volume":"1 1","pages":"18 - 42"},"PeriodicalIF":1.7,"publicationDate":"2022-01-02","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"84024412","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2021-12-17DOI: 10.1080/1226508X.2021.2015420
Hyunsoo Joo, Hyunjin Lee
ABSTRACT Using IPO and external audit companies’ data in Korea from 2001 to 2020, we used an empirical test to understand which factors can explain underpricing in Korean stock markets. Our conclusions are as follows: first, selection bias is important in the IPO analysis and the sample selection model shows the best results. Second, we find that nonlinear relationships between explanatory variables and cumulative adjusted returns (CARs). Surprisingly, almost all of the variables included in the model were statistically significant. Finally, this clear relation persists upto 1 year after the IPO.
{"title":"IPO Underpricing Analysis Using a Selection Model: Korean Evidence","authors":"Hyunsoo Joo, Hyunjin Lee","doi":"10.1080/1226508X.2021.2015420","DOIUrl":"https://doi.org/10.1080/1226508X.2021.2015420","url":null,"abstract":"ABSTRACT Using IPO and external audit companies’ data in Korea from 2001 to 2020, we used an empirical test to understand which factors can explain underpricing in Korean stock markets. Our conclusions are as follows: first, selection bias is important in the IPO analysis and the sample selection model shows the best results. Second, we find that nonlinear relationships between explanatory variables and cumulative adjusted returns (CARs). Surprisingly, almost all of the variables included in the model were statistically significant. Finally, this clear relation persists upto 1 year after the IPO.","PeriodicalId":45235,"journal":{"name":"Global Economic Review","volume":"131 1","pages":"43 - 60"},"PeriodicalIF":1.7,"publicationDate":"2021-12-17","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"90391461","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
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