Pub Date : 2022-10-02DOI: 10.1080/1226508X.2022.2143703
Kwangyong Park
ABSTRACT In this paper, we analyse the impacts of COVID-19 and the policy response to it in Korea based on a version of a Macro-SIR model with labour friction, and with multiple types of jobs and households. Due to substantial uncertainty in the model and parameters that govern the interaction between epidemiological and macroeconomic developments, we rely on a prior predictive analysis when simulating the model. We find that the model successfully predicts an endogenous rise in the number of confirmed cases in the second half of 2020, and a sharp decline in economic activity followed by a temporary recovery caused by the government transfer program. It also turns out that low-wealth households are more damaged from the pandemic due to larger losses in terms of labour income. In addition, it is shown that the consumption multiplier of the universal transfer program is around 0.09.
{"title":"Macroeconomic Impacts of COVID-19 and Universal Transfer Programs: The Case of Korea","authors":"Kwangyong Park","doi":"10.1080/1226508X.2022.2143703","DOIUrl":"https://doi.org/10.1080/1226508X.2022.2143703","url":null,"abstract":"ABSTRACT In this paper, we analyse the impacts of COVID-19 and the policy response to it in Korea based on a version of a Macro-SIR model with labour friction, and with multiple types of jobs and households. Due to substantial uncertainty in the model and parameters that govern the interaction between epidemiological and macroeconomic developments, we rely on a prior predictive analysis when simulating the model. We find that the model successfully predicts an endogenous rise in the number of confirmed cases in the second half of 2020, and a sharp decline in economic activity followed by a temporary recovery caused by the government transfer program. It also turns out that low-wealth households are more damaged from the pandemic due to larger losses in terms of labour income. In addition, it is shown that the consumption multiplier of the universal transfer program is around 0.09.","PeriodicalId":45235,"journal":{"name":"Global Economic Review","volume":null,"pages":null},"PeriodicalIF":1.7,"publicationDate":"2022-10-02","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"75003700","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 : 2022-09-26DOI: 10.1080/1226508X.2022.2122530
C. Choi, Narantsetseg Chinzorigt, Noori Park
ABSTRACT Mobile is a key sector promoting international trade, FDI and economic growth in the modern era. The objective of this paper is to examine the dynamic nexus between Mobile, trade, FDI and economic growth by employing a panel vector error correction model. Empirical results suggest that Mobile has more positively contributed to international trade in the low income country group than other groups, and it has a more positive impact on FDI inflow in the higher-income country group than other groups, it has a more powerful impact on economic growth in the middle-income country group than other groups.
{"title":"How Mobiles Affect International Trade, FDI and Economic Growth: Comparative Analysis of Income Level","authors":"C. Choi, Narantsetseg Chinzorigt, Noori Park","doi":"10.1080/1226508X.2022.2122530","DOIUrl":"https://doi.org/10.1080/1226508X.2022.2122530","url":null,"abstract":"ABSTRACT Mobile is a key sector promoting international trade, FDI and economic growth in the modern era. The objective of this paper is to examine the dynamic nexus between Mobile, trade, FDI and economic growth by employing a panel vector error correction model. Empirical results suggest that Mobile has more positively contributed to international trade in the low income country group than other groups, and it has a more positive impact on FDI inflow in the higher-income country group than other groups, it has a more powerful impact on economic growth in the middle-income country group than other groups.","PeriodicalId":45235,"journal":{"name":"Global Economic Review","volume":null,"pages":null},"PeriodicalIF":1.7,"publicationDate":"2022-09-26","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"87562347","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 : 2022-07-03DOI: 10.1080/1226508X.2022.2102055
A. K. Panda, S. Nanda, S. Sahoo
ABSTRACT The study aims to examine the evidence of transmission of monetary policy impulses to a firm’s profitability and highlights that short-term financing decision fails to enhance the profitability of the firms during tight monetary policy except for the firms with high quantile of profitability. During tight monetary policy, the profitability of firms from median quantiles of profitability and above is negatively impacted. After incorporating price-cost margin, we find that the short-term financing decisions of high price-cost margin firms are hardly responsive to monetary policy. However, for long-term financing, firms with high mark-up and high profitability support profitability positively.
{"title":"Transmission of Monetary Policy Impulses to a Firm’s Profitability: An Empirical Analysis of Manufacturing Firms","authors":"A. K. Panda, S. Nanda, S. Sahoo","doi":"10.1080/1226508X.2022.2102055","DOIUrl":"https://doi.org/10.1080/1226508X.2022.2102055","url":null,"abstract":"ABSTRACT The study aims to examine the evidence of transmission of monetary policy impulses to a firm’s profitability and highlights that short-term financing decision fails to enhance the profitability of the firms during tight monetary policy except for the firms with high quantile of profitability. During tight monetary policy, the profitability of firms from median quantiles of profitability and above is negatively impacted. After incorporating price-cost margin, we find that the short-term financing decisions of high price-cost margin firms are hardly responsive to monetary policy. However, for long-term financing, firms with high mark-up and high profitability support profitability positively.","PeriodicalId":45235,"journal":{"name":"Global Economic Review","volume":null,"pages":null},"PeriodicalIF":1.7,"publicationDate":"2022-07-03","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"82356047","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 : 2022-07-03DOI: 10.1080/1226508X.2022.2120517
Yunqi Fan, Guanglei Hu
ABSTRACT This study finds that institutional investment constraint increases stock price crash risk. We employ both instrumental variable approach and a quasi-experiment to identify the causal effect. We also find institutions are more likely to sell stocks with stronger institutional investment constraint in response to firm’s bad news. In addition, the positive relationship between institutional investment constraint and crash risk is less pronounced for institutions of larger size and better past performance. These results are consistent with managerial catering explanation rather than career concern and soft information explanations. Finally, the channel analysis shows that the effect of institutional investment constraint on crash risk is mediated by predatory selling and investor information competition.
{"title":"Capital Market Consequence of Institutional Investment Constraint: Evidence from the Stock Price Crash Risk in China","authors":"Yunqi Fan, Guanglei Hu","doi":"10.1080/1226508X.2022.2120517","DOIUrl":"https://doi.org/10.1080/1226508X.2022.2120517","url":null,"abstract":"ABSTRACT This study finds that institutional investment constraint increases stock price crash risk. We employ both instrumental variable approach and a quasi-experiment to identify the causal effect. We also find institutions are more likely to sell stocks with stronger institutional investment constraint in response to firm’s bad news. In addition, the positive relationship between institutional investment constraint and crash risk is less pronounced for institutions of larger size and better past performance. These results are consistent with managerial catering explanation rather than career concern and soft information explanations. Finally, the channel analysis shows that the effect of institutional investment constraint on crash risk is mediated by predatory selling and investor information competition.","PeriodicalId":45235,"journal":{"name":"Global Economic Review","volume":null,"pages":null},"PeriodicalIF":1.7,"publicationDate":"2022-07-03","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"77684608","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 : 2022-07-03DOI: 10.1080/1226508X.2022.2120518
Dan-yang Li, Xinyao Wang, Yubing Xu, Yutian Ren
ABSTRACT Due to the importance of product and geographical diversification of exports, the gravity equation was used to predict export diversification for 19 Asian countries from 2004 to 2017 and the System Generalised Method of Moments was used to analyse the dynamic impact of globalisation at the disaggregated level of the diversification of sectoral exports and the goods specialisation on income inequalities. The results show that sectoral diversification of exports is the driving force of inequality. Furthermore, increased diversification of exports in the highly-income countries of Asia increases inequality and has little impact on low-income countries in Asia.
{"title":"Analysis of Export Diversification and Impact of Globalisation on Income Inequality: Evidence from Asian Countries","authors":"Dan-yang Li, Xinyao Wang, Yubing Xu, Yutian Ren","doi":"10.1080/1226508X.2022.2120518","DOIUrl":"https://doi.org/10.1080/1226508X.2022.2120518","url":null,"abstract":"ABSTRACT Due to the importance of product and geographical diversification of exports, the gravity equation was used to predict export diversification for 19 Asian countries from 2004 to 2017 and the System Generalised Method of Moments was used to analyse the dynamic impact of globalisation at the disaggregated level of the diversification of sectoral exports and the goods specialisation on income inequalities. The results show that sectoral diversification of exports is the driving force of inequality. Furthermore, increased diversification of exports in the highly-income countries of Asia increases inequality and has little impact on low-income countries in Asia.","PeriodicalId":45235,"journal":{"name":"Global Economic Review","volume":null,"pages":null},"PeriodicalIF":1.7,"publicationDate":"2022-07-03","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"80272816","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 : 2022-07-03DOI: 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":null,"pages":null},"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":null,"pages":null},"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":null,"pages":null},"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":null,"pages":null},"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":null,"pages":null},"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}
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